20038 Federal Register / Vol. 80, No. 71 / Tuesday, April 14, 2015 / Notices 

16 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 74290 

(Feb. 18, 2015), 80 FR 9818 (‘‘Notice’’). 

4NYSE Arca Equities Rule 5.2(j)(3)(A) provides 

that an Investment Company Unit is a security that 

represents an interest in a registered investment 

company that holds securities comprising, or 

otherwise based on or representing an interest in, 

an index or portfolio of securities (or holds 

securities in another registered investment 

company that holds securities comprising, or 

otherwise based on or representing an interest in, 

an index or portfolio of securities). 

5NYSE Arca Equities Rule 5.2(j)(3) defines the 

term ‘‘US Component Stock’’ as an equity security 

that is registered under Sections 12(b) or 12(g) of 

the Act and an American Depositary receipt, the 

underlying equity securities of which is registered 

under Sections 12(b) or 12(g) of the Act. 

6NYSE Arca Equities Rule 5.2(j)(3), Commentary 

.01(a)(A)(5) provides that all securities in the 

applicable index or portfolio shall be US 

Component Stocks listed on a national securities 

exchange and shall be NMS Stocks as defined in 

Rule 600 under Regulation NMS of the Act. Each 

component stock of the S&P 500 Index is a US 

Component Stock that is listed on a national 

securities exchange and is an NMS Stock. See 

Notice, supra note 3, 80 FR at 9820, n.13. Options 

are excluded from the definition of NMS Stock. The 

S&P 500 Index consists of US Component Stocks 

and satisfies the requirements of Commentary 

.01(a)(A)(1)-(5). See id. 

7The Trust is registered under the Investment 

Company Act of 1940 (15 U.S.C. 80a–1) (‘‘1940 

Act’’). According to the Exchange, on December 15, 

2014, the Trust filed with the Commission an 

amendment to its registration statement on Form N– 

1A relating to the Fund (File Nos. 333–132380 and 

811–21864) (‘‘Registration Statement’’). In addition, 

the Commission has issued an order granting 

certain exemptive relief to the Trust under the 1940 

Act. See Investment Company Act Release No. 

28171 (October 27, 2008) (File No. 812–13458). 

8WisdomTree Investments, Inc. is the parent 

company of WisdomTree Asset Management. 

9The Exchange further represents that the SubAdviser is affiliated with multiple broker-dealers 

and has implemented a ‘‘fire wall’’ with respect to 

such broker-dealers and their personnel regarding 

access to information concerning the composition 

and/or changes to the Index. In addition, according 

to the Exchange, in the event (a) the Adviser or SubAdviser becomes registered as a broker-dealer or 

newly affiliated with, a broker-dealer, or (b) any 

new adviser or sub-adviser is a registered brokerdealer or becomes affiliated with, a broker-dealer, 

the Adviser or any new adviser or Sub-Adviser or 

new sub-adviser, as applicable, will implement a 

fire wall with respect to its relevant personnel or 

its broker-dealer affiliate regarding access to 

information concerning the composition of and 

changes to the Fund’s portfolio, and will be subject 

to procedures designed to prevent the use and 

dissemination of material, non-public information 

regarding such portfolio. 

10See Notice, supra note 3, 80 FR at 9819. 

11Additional information regarding the Trust, the 

Fund, and the Shares, including investment 

strategies, risks, net asset value (‘‘NAV’’) 

calculation, creation and redemption procedures, 

fees, portfolio holdings disclosure policies, 

distributions, and taxes, among other information, 

is included in the Notice and the Registration 

Statement, as applicable. See Notice, supra note 3 

and Registration Statement, supra note 7. 

12The put-write strategy of selling cash-secured 

SPX Puts has the potential to appeal to investors 

who wish to add income and attempt to boost riskadjusted returns, in return for risking underperformance during bull markets. An investor who 

engages in a cash-secured (i.e., collateralized) put 

sales strategy sells (or ‘‘writes’’) a put option 

contract and at the same time deposits the full cash 

amount necessary for a possible purchase of 

underlying shares in the investor’s brokerage 

account. Additional information on the 

methodology used to calculate the Index can be 

found at: http://www.cboe.com/micro/put/

PutWriteMethodology.pdf. 

13The Treasury securities in which the Fund may 

invest will include variable rate Treasury securities, 

whose rates are adjusted daily (or at such other 

increment as may later be determined by the 

Department of the Treasury) to correspond with the 

rate paid on one-month or three-month Treasury 

securities, as applicable. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–08452 Filed 4–13–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74675; File No. SR– 

NYSEArca–2015–05] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Order Approving a 

Proposed Rule Change To List and 

Trade Shares of WisdomTree Put Write 

Strategy Fund Under Commentary .01 

to NYSE Arca Equities Rule 5.2(j)(3) 

April 8, 2015. 

I. Introduction 

On February 3, 2015, NYSE Arca, Inc. 

(‘‘NYSEArca’’ or ‘‘Exchange’’) filed with 

the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 

to Section 19(b)(1) of the Securities 

Exchange Act of 1934 (‘‘Act’’ or 

‘‘Exchange Act’’) 1 and Rule 19b-4 

thereunder,2 a proposed rule change to 

list and trade shares (‘‘Shares’’) of the 

WisdomTree Put Write Strategy Fund 

(‘‘Fund’’). The proposed rule change 

was published for comment in the 

Federal Register on February 24, 2015.3

The Commission received no comments 

on the proposal. This order approves the 

proposed rule change. 

II. Description of Proposed Rule Change 

A. In General 

The Exchange proposes to list and 

trade the Shares under Commentary .01 

to NYSE Arca Equities Rule 5.2(j)(3), 

which governs the listing and trading of 

Investment Company Units (‘‘Units’’) on 

the Exchange.4 The Exchange may 

generically list Units that meet all of the 

requirements of Commentary .01. The 

Exchange represents that the Fund and 

the Index meet all of the requirements 

of the listing standards for Units in Rule 

5.2(j)(3) and the requirements of 

Commentary .01, except the 

requirements in Commentary 

.01(a)(A)(1)–(5), which set forth 

requirements for components of an 

index or portfolio of US Component 

Stocks.5 As discussed in the Notice, the 

index underlying the Fund will consist 

primarily of S&P 500 Index put options 

(‘‘SPX Puts’’), which are not US 

Component Stocks,6 and therefore the 

index does not satisfy the requirements 

of Commentary .01(a)(A)(1)–(5). 

The Shares will be offered by the 

WisdomTree Trust (‘‘Trust’’),7 a 

registered investment company. 

WisdomTree Asset Management, Inc. 

will be the investment adviser 

(‘‘Adviser’’) to the Fund.8 The Exchange 

represents that the Adviser is not 

registered as, or affiliated with, a brokerdealer. Mellon Capital Management will 

serve as sub-adviser for the Fund (‘‘SubAdviser’’).9 State Street Bank and Trust 

Company will be the administrator, 

custodian and transfer agent for the 

Trust. Foreside Fund Services, LLC will 

serve as the distributor for the Fund 

(‘‘Distributor’’). 

The Fund is an index-based exchange 

traded fund (‘‘ETF’’) that will seek 

investment results that before fees and 

expenses, closely correspond to the 

price and yield performance of the 

CBOE S&P 500 Put Write Index 

(‘‘Index’’). The Index was developed 

and is maintained by the Chicago Board 

Options Exchange, Inc. (‘‘CBOE’’ or the 

‘‘Index Provider’’). Neither the Trust, 

the Adviser, the Sub-Adviser, State 

Street Bank and Trust Company, nor the 

Distributor is affiliated with the Index 

Provider.10

B. The Exchange’s Description of the 

Fund 

The Exchange has made the following 

representations and statements in 

describing the Fund and its investment 

strategies, including other portfolio 

holdings and investment restrictions.11

1. Principal Investments of the Fund 

The Fund will seek investment results 

that, before fees and expenses, closely 

correspond to the price and yield 

performance of the Index. The Index 

tracks the value of a passive investment 

strategy, which consists of overlaying 

‘‘SPX Puts’’ over a money market 

account invested in one and threemonth Treasury bills (‘‘PUT 

Strategy’’).12

The Fund will invest at least 80% of 

its assets in SPX Puts and short-term 

U.S. Treasury securities.13 The Fund’s 

investment strategy will be designed to 

sell a sequence of one-month, at-themoney, SPX Puts and to invest cash at 


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14The terms ‘‘under normal circumstances’’ and 

‘‘normal market conditions’’ include, but are not 

limited to, the absence of extreme volatility or 

trading halts in the fixed income markets or the 

financial markets generally; operational issues 

causing dissemination of inaccurate market 

information; or force majeure type events such as 

systems failure, natural or man-made disaster, act 

of God, armed conflict, act of terrorism, riot or labor 

disruption or any similar intervening circumstance. 

In response to adverse market, economic, political, 

or other conditions, the Fund reserves the right to 

invest in U.S. government securities, other ‘‘money 

market instruments’’ (as defined below), and cash, 

without limitation, as determined by the Adviser or 

Sub-Adviser. In the event the Fund engages in these 

temporary defensive strategies that are inconsistent 

with its investment strategies, the Fund’s ability to 

achieve its investment objectives may be limited. 

15All money market instruments acquired by the 

Fund will be rated investment grade, except that a 

Fund may invest in unrated money market 

instruments that are deemed by the Adviser or SubAdviser to be of comparable quality to money 

market securities rated investment grade. The term 

‘‘investment grade,’’ for purposes of money market 

instruments only, is intended to mean securities 

rated A1 or A2 by one or more nationally 

recognized statistical rating organizations. 

16An index option gives its holder the right, but 

not the obligation, to buy or sell a basket of stocks, 

at an agreed upon price at or before a certain date. 

An ETF option gives its holder the right, but not 

the obligation, to buy or sell an exchange-traded 

product, such as shares in an ETF, at an agreed 

upon price, at or before a certain date. 

17To the extent practicable, the Fund will invest 

in swaps cleared through the facilities of a 

centralized clearing house. The Fund may also 

invest in money market instruments that may serve 

as collateral for the swap agreements. The Adviser 

or Sub-Adviser will also attempt to mitigate the 

Fund’s respective credit risk by transacting only 

with large, well-capitalized institutions using 

measures designed to determine the 

creditworthiness of the counterparty. The Adviser 

or Sub-Adviser will take various steps to limit 

counterparty credit risk as described in the 

Registration Statement. The Fund will enter into 

over-the-counter non-centrally cleared instruments 

only with financial institutions that meet certain 

credit quality standards and monitoring policies. 

The Fund may also use various techniques to 

minimize credit risk, including early termination or 

reset and payment, using different counterparties, 

and limiting the net amount due from any 

individual counterparty. The Fund generally will 

collateralize over-the-counter non-centrally cleared 

instruments with cash and/or certain securities. 

Such collateral will generally be held for the benefit 

of the counterparty in a segregated tri-party account 

at the custodian to protect the counterparty against 

non-payment by the Fund. In the event of a default 

by the counterparty, and the Fund is owed money 

in the over-the-counter non-centrally cleared 

instruments transaction, the Fund will seek 

withdrawal of the collateral from the segregated 

account and may incur certain costs exercising its 

right with respect to the collateral. 

18The futures contracts in which the Fund may 

invest will be listed on exchanges in the U.S. Each 

of the exchange-listed futures contracts in which 

the Fund may invest will be listed on exchanges 

that are members of the Intermarket Surveillance 

Group (‘‘ISG’’). 

19For example, the Fund may invest in total 

return swaps that create positions equivalent to 

investments in SPX Puts and U.S. Treasury 

securities. In a total return swap the underlying 

asset to the swap agreement is typically an equity 

index, loans or bonds. The Fund’s investments in 

total return swap agreements will be backed by 

investments in U.S. government securities in an 

amount equal to the exposure of such contracts. 

20The Fund may invest in shares of both taxable 

and tax-exempted money market funds. The ETPs 

in which the Fund may invest all will be listed and 

traded on U.S. registered exchanges. The Fund may 

invest in the securities of ETPs registered under the 

1940 Act consistent with the requirements of 

Section 12(d)(1) of the 1940 Act or any rule, 

regulation or order of the Commission or 

interpretation thereof. The ETPs in which the Fund 

may invest will be primarily index-based ETFs that 

hold substantially all of their assets in securities 

representing a specific index. The Fund will not 

invest in leveraged (e.g., 2X, -2X, 3X, or -3X) ETPs. 

21 15 U.S.C. 78f. 

22 In approving this proposed rule change, the 

Commission has considered the proposed rule’s 

impact on efficiency, competition, and capital 

formation. See 15 U.S.C. 78c(f). 

23 15 U.S.C. 78f(b)(5). 

24 15 U.S.C. 78k–1(a)(1)(C)(iii). 

one and three-month Treasury bill rates. 

The number of SPX Puts sold will vary 

from month to month, but will be 

limited to permit the amount held in the 

Fund’s investment in Treasury bills to 

finance the maximum possible loss from 

final settlement of the SPX Puts. 

The SPX Puts will be struck at-themoney and will be sold on a monthly 

basis on the Roll Date, (i.e., the same 

Roll Date as that used by the Index), 

which matches the expiration date of 

the SPX Put options. At each Roll Date, 

any settlement loss from the expiring 

SPX Puts will be financed by the Fund’s 

Treasury bill investments and a new 

batch of at-the-money SPX Puts will be 

sold. The revenue from their sale will be 

added to the Treasury bill account. In 

March quarterly cycle months, the 

three-month Treasury bills will be 

deemed to mature, and so the total cash 

available will be reinvested at the threemonth Treasury bill rate. In other 

months, the revenue from the sale of 

puts will be invested separately at the 

one-month Treasury bill rate. 

2. Other Investments of the Fund 

While the Fund, under normal 

circumstances,14 will invest in 

investments as described above, the 

Fund may also invest in other certain 

investments as described below. 

The Fund may invest its remaining 

assets in short-term, high quality 

securities issued or guaranteed by the 

U.S. government (in addition to U.S. 

Treasury securities) and non-U.S. 

governments, and each of their agencies 

and instrumentalities; U.S. government 

sponsored enterprises; repurchase 

agreements backed by U.S. government 

and non-U.S. government securities; 

money market mutual funds; and 

deposit and other obligations of U.S. 

and non-U.S. banks and financial 

institutions (‘‘money market 

instruments’’) 15 and derivative 

instruments or other investments. The 

Fund may invest up to 20% of its net 

assets (in the aggregate) in one or more 

of the following investments not 

included in the Index: S&P 500 ETF put 

options,16 total return swaps on the 

Index,17 S&P 500 Index futures 

(including E-mini S&P 500 Futures), or 

options on S&P 500 Index futures,18

whose collective performance is 

intended to correspond to the Index.19

The Fund, may invest up to 10% of its 

assets in over-the-counter S&P 500 

Index put options (‘‘OTC S&P 500 Index 

put options’’). 

The Fund may invest up to 20% of its 

assets in other exchange traded products 

(‘‘ETPs’’), such as other ETFs, as well as 

in non-exchange-traded registered openend investment companies.20 The Fund 

may invest in securities (other than U.S. 

Treasury securities, described above) 

that have variable or floating interest 

rates which are readjusted on set dates 

(such as the last day of the month or 

calendar quarter) in the case of variable 

rates or whenever a specified interest 

rate change occurs in the case of a 

floating rate instrument. 

III. Discussion and Commission’s 

Findings 

After careful review, the Commission 

finds that the proposed rule change is 

consistent with the requirements of 

Section 6 of the Act 21 and the rules and 

regulations thereunder applicable to a 

national securities exchange.22 In 

particular, the Commission finds that 

the proposal is consistent with Section 

6(b)(5) of the Act,23 which requires, 

among other things, that the Exchange’s 

rules be designed to promote just and 

equitable principles of trade, to remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system, and, in 

general, to protect investors and the 

public interest. The Commission also 

finds that the proposal to list and trade 

the Shares on the Exchange is consistent 

with Section 11A(a)(1)(C)(iii) of the 

Act,24 which sets forth Congress’ finding 

that it is in the public interest and 

appropriate for the protection of 

investors and the maintenance of fair 

and orderly markets to assure the 

availability to brokers, dealers, and 

investors of information with respect to 

quotations for, and transactions in, 

securities. 

Quotation and last-sale information 

for the Shares and any ETP in which it 

invests will be available via the 

Consolidated Tape Association (‘‘CTA’’) 

high-speed line. In addition, the 

Intraday Indicative Value (‘‘IIV’’) as 

defined in NYSE Arca Equities Rule 

5.3(j)(3), Commentary .01(c) will be 


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25The Exchange understands that several major 

market data vendors display and/or make widely 

available IIV taken from CTA or other data feeds. 

26These reasons may include: (1) The extent to 

which trading is not occurring in the securities and/ 

or the financial instruments of the Fund; or (2) 

whether other unusual conditions or circumstances 

detrimental to the maintenance of a fair and orderly 

market are present. With respect to trading halts, 

the Exchange may consider all relevant factors in 

exercising its discretion to halt or suspend trading 

in the Shares. 

27See supra note 9. The Exchange states that an 

investment adviser to an open-end fund is required 

to be registered under the Investment Advisers Act 

of 1940 (‘‘Advisers Act’’). As a result, the Adviser 

and Sub-Adviser and their related personnel are 

subject to the provisions of Rule 204A–1 under the 

Advisers Act relating to codes of ethics. This Rule 

requires investment advisers to adopt a code of 

ethics that reflects the fiduciary nature of the 

relationship to clients, as well as compliance with 

other applicable securities laws. Accordingly, 

procedures designed to prevent the communication 

and misuse of non-public information by an 

investment adviser must be consistent with Rule 

204A–1 under the Advisers Act. In addition, Rule 

206(4)–7 under the Advisers Act makes it unlawful 

for an investment adviser to provide investment 

advice to clients unless such investment adviser has 

(i) adopted and implemented written policies and 

procedures reasonably designed to prevent 

violation, by the investment adviser and its 

supervised persons, of the Advisers Act and the 

Commission rules adopted thereunder; (ii) 

implemented, at a minimum, an annual review 

regarding the adequacy of the policies and 

procedures established pursuant to subparagraph (i) 

above and the effectiveness of their 

implementation; and (iii) designated an individual 

(who is a supervised person) responsible for 

administering the policies and procedures adopted 

under subparagraph (i) above. 

28The Exchange states that FINRA surveils 

trading on the Exchange pursuant to a regulatory 

services agreement and that the Exchange is 

responsible for FINRA’s performance under this 

regulatory services agreement. 

29The Index will include a minimum of 20 

components, which is consistent with the 

numerical requirement of NYSE Arca Equities Rule 

5.2(j)(3), Commentary .01(a)(A)(4) (a minimum of 13 

index or portfolio components). 

widely disseminated at least every 

fifteen seconds during the NYSE Arca 

Core Trading Session by one or more 

major market data vendors.25 On each 

business day before commencement of 

trading in Shares in the Core Trading 

Session, the Trust will disclose for each 

portfolio holding, as applicable to the 

type of holding, the following 

information on its Web site: Ticker 

symbol, CUSIP number or other 

identifier, if any; a description of the 

holding (including the type of holding, 

such as the type of swap); the identity 

of the security, commodity, index or 

other asset or instrument underlying the 

holding, if any; for options, the option 

strike price; quantity held (as measured 

by, for example, par value, notional 

value or number of shares, contracts or 

units); maturity date, if any; coupon 

rate, if any; market value of the holding; 

and the percentage weighting of the 

holding in the Fund’s portfolio. The 

Web site information will be publicly 

available at no charge. 

In addition, a portfolio composition 

file, which includes the security names 

and quantities of securities and other 

assets required to be delivered in 

exchange for the Fund’s Shares, together 

with estimates and actual cash 

components, will be publicly 

disseminated daily prior to the opening 

of the Exchange via National Securities 

Clearing Corporation. The NAV of the 

Fund will be calculated as of the close 

of trading (normally 4:00 p.m., Eastern 

Time) on each day the Exchange is open 

for business. 

Information regarding market price 

and trading volume of the Shares will be 

continually available on a real-time 

basis throughout the day on brokers’ 

computer screens and other electronic 

services. Information regarding the 

previous day’s closing price and trading 

volume information for the Shares will 

be published daily in the financial 

section of newspapers. Intra-day, 

closing and settlement prices of 

exchange-traded portfolio assets, 

including investment companies, 

futures and options, will be readily 

available from the securities exchanges 

and futures exchanges trading such 

securities and futures (as the case may 

be), automated quotation systems, 

published or other public sources, or 

online information services such as 

Bloomberg or Reuters. Quotation and 

last-sale information for U.S. exchangelisted options is available via Options 

Price Reporting Authority. Price 

information on fixed income portfolio 

securities, including money market 

instruments, and other Fund assets 

traded in the over-the-counter markets, 

including bonds and money market 

instruments, is available from major 

broker-dealer firms or market data 

vendors, as well as from automated 

quotation systems, published or other 

public sources, or online information 

services. In addition, the value of the 

Index will be published by one or more 

major market data vendors every 15 

seconds during the NYSE Arca Core 

Trading Session of 9:30 a.m. ET to 4:00 

p.m. ET. Information about the Index 

constituents, the weighting of the 

constituents, the Index’s methodology 

and the Index’s rules will be available 

at no charge on the Index Provider’s 

Web site at www.CBOE.com. 

The Commission further believes that 

the proposal to list and trade the Shares 

is reasonably designed to promote fair 

disclosure of information that may be 

necessary to price the Shares 

appropriately and to prevent trading 

when a reasonable degree of 

transparency cannot be assured. The 

Exchange will obtain a representation 

from the issuer of the Shares that the 

NAV per Share will be calculated daily 

and that the NAV will be made available 

to all market participants at the same 

time. Trading in Shares will be halted 

if the circuit breaker parameters in 

NYSE Arca Equities Rule 7.12 have been 

reached or because of market conditions 

or for reasons that, in the view of the 

Exchange, make trading in the Shares 

inadvisable.26 The Exchange states that 

it has a general policy prohibiting the 

distribution of material, non-public 

information by its employees. In 

addition, the Exchange states that the 

Adviser is not registered as, or affiliated 

with, a broker-dealer and that, in the 

event it becomes registered as a brokerdealer or newly affiliated with a brokerdealer, the Adviser will implement a 

fire wall with respect to such brokerdealer function or affiliate regarding 

access to information concerning the 

composition and changes to the Fund’s 

portfolio.27 The Exchange represents 

that trading in the Shares will be subject 

to the existing trading surveillances, 

administered by the Financial Industry 

Regulatory Authority (‘‘FINRA’’) on 

behalf of the Exchange, which are 

designed to detect violations of 

Exchange rules and applicable federal 

securities laws.28 The Exchange further 

represents that these procedures are 

adequate to properly monitor Exchange 

trading of the Shares in all trading 

sessions and to deter and detect 

violations of Exchange rules and federal 

securities laws applicable to trading on 

the Exchange. Moreover, prior to the 

commencement of trading, the Exchange 

states that it will inform its Equity 

Trading Permit Holders in an 

Information Bulletin of the special 

characteristics and risks associated with 

trading the Shares. 

The Commission notes that the Shares 

and the Fund must comply with the 

initial and continued listing criteria in 

NYSE Arca Equities Rules 5.2(j)(3) and 

5.5(g)(2) for the Shares to be listed and 

traded on the Exchange. The Exchange 

represents that it deems the Shares to be 

equity securities, thus rendering trading 

in the Shares subject to the Exchange’s 

existing rules governing the trading of 

equity securities. In support of this 

proposal, the Exchange has also made 

the following representations: 

(1) The Shares conform to the initial 

and continued listing criteria under 

NYSE Arca Equities Rules 5.2(j)(3) and 

5.5(g)(2), except that the Index will not 

meet the requirements of NYSE Arca 

Equities Rule 5.2(j)(3), Commentary 

.01(a)(A)(1–5).29


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30 17 CFR 240.10A–3. 

31 15 U.S.C. 78f(b)(5). 

32 15 U.S.C. 78s(b)(2). 

33 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(7). 

2See OCX NTM 2010–12. 

3CFTC, Ownership and Control Reports, Forms 

102/102S/40/40S and 71; Final Rule 78 FR 69178 

(Nov. 18, 2013). 

(2) The Exchange has appropriate 

rules to facilitate transactions in the 

Shares during all trading sessions. 

(3) FINRA, on behalf of the Exchange, 

will communicate as needed regarding 

trading in the Shares, exchange-listed 

equity securities, futures contracts, and 

exchange-traded options contracts with 

other markets and other entities that are 

members of ISG, and FINRA, on behalf 

of the Exchange, may obtain trading 

information regarding trading in the 

Shares, exchange-listed equity 

securities, futures contacts and 

exchange-traded options contracts from 

such markets and other entities. In 

addition, the Exchange may obtain 

information regarding trading in the 

Shares, exchange-listed equity 

securities, futures contacts and 

exchange-traded options contracts from 

markets and other entities that are 

members of ISG or with which the 

Exchange has in place a comprehensive 

surveillance sharing agreement. 

(4) Prior to the commencement of 

trading, the Exchange will inform its 

Equity Trading Permit Holders in an 

Information Bulletin of the special 

characteristics and risks associated with 

trading the Shares. Specifically, the 

Information Bulletin will discuss the 

following: (a) the procedures for 

purchases and redemptions of Shares in 

creation units (and that Shares are not 

individually redeemable); (b) NYSE 

Arca Equities Rule 9.2(a), which 

imposes a duty of due diligence on its 

Equity Trading Permit Holders to learn 

the essential facts relating to every 

customer prior to trading the Shares; (c) 

the risks involved in trading the Shares 

during the Opening and Late Trading 

Sessions when an updated IIV or Index 

value will not be calculated or publicly 

disseminated; (d) how information 

regarding the IIV and Index Value is 

disseminated; (e) the requirement that 

Equity Trading Permit Holders deliver a 

prospectus to investors purchasing 

newly issued Shares prior to or 

concurrently with the confirmation of a 

transaction; and (f) trading information. 

(5) For initial and continued listing, 

the Fund will be in compliance with 

Rule 10A–3 under the Act,30 as 

provided by NYSE Arca Equities Rule 

5.3. 

(6) The Fund may hold up to an 

aggregate amount of 15% of its net 

assets in illiquid assets (calculated at 

the time of investment). 

(7) A minimum of 100,000 Shares for 

the Fund will be outstanding at the 

commencement of trading on the 

Exchange. 

(8) All futures contracts in which the 

Fund may invest will be listed on U.S. 

that are members of the ISG. 

This approval order is based on all of 

the Exchange’s representations, 

including those set forth above and in 

the Notice. 

For the foregoing reasons, the 

Commission finds that the proposed 

rule change is consistent with Section 

6(b)(5) of the Act 31 and the rules and 

regulations thereunder applicable to a 

national securities exchange. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,32 that the 

proposed rule change (SR–NYSEArca– 

2015–05) be, and it hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.33

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–08447 Filed 4–13–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74679; File No. SR–OC– 

2015–01] 

Self-Regulatory Organizations; 

OneChicago, LLC; Notice of Filing of 

Proposed Rule Change Relating to 

Ownership and Control Reports 

April 8, 2015. 

Pursuant to Section 19(b)(7) of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’) 1, notice is hereby given that on 

March 31, 2015, OneChicago, LLC 

(‘‘OneChicago,’’ ‘‘OCX,’’ or the 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission (‘‘SEC’’ or 

‘‘Commission’’) the proposed rule 

change described in Items I, II, and III 

below, which Items have been prepared 

by the self-regulatory organization. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

OneChicago has also filed this rule 

change with the Commodity Futures 

Trading Commission (‘‘CFTC’’). 

OneChicago filed a written certification 

with the CFTC under Section 5c(c) of 

the Commodity Exchange Act (‘‘CEA’’) 

on March 19, 2015. 

I. Self-Regulatory Organization’s 

Description of the Proposed Rule 

Change 

OneChicago is proposing to insert into 

its Rulebook new OCX Rule 516 and 

concurrently issue Notice to Members 

(‘‘NTM’’) 2015–7. New OCX Rule 516 

codifies the requirement that Clearing 

Members submit to the Exchange 

account information related to 

reportable positions in OneChicago 

Contracts. OneChicago currently 

requires position-based reporting, but 

has not previously codified this 

requirement in the OCX Rulebook.2

Additionally, OneChicago is 

concurrently issuing NTM 2015–7. The 

NTM informs market participants that 

OneChicago is adopting new OCX Rule 

516. Additionally, the NTM explains to 

market participants that OCX will 

require Clearing Members to submit 

CFTC Form 102A and 102B data in the 

format required by the CFTC’s 

Ownership and Control Reports 

(‘‘OCR’’) Final Rule.3

The text of the proposed rule change 

is attached as Exhibit 4 to the filing 

submitted by the Exchange but is not 

attached to the published notice of the 

filing. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

OneChicago included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

self-regulatory organization has 

prepared summaries, set forth in 

sections A, B, and C below, of the most 

significant aspects of such statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

New OCX Rule 516 

OneChicago is proposing to amend 

the OCX Rulebook to insert new OCX 

Rule 516. OCX Rule 516 will require 

Clearing Members to submit to the 

Exchange account information related to 

reportable positions in OneChicago 

Contracts. OneChicago currently 

requires such reporting, but has not 


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