Federal Register / Vol. 80, No. 71 / Tuesday, April 14, 2015 / Notices 20035 

16The Exchange notes that, because trading in the 

components of the MSCI EAFE Index ends at 

approximately 11:30 a.m. (Chicago Time), there will 

not be a current MSCI EAFE Index level calculated 

and disseminated during a portion of the time when 

MSCI EAFE Index options would be traded (from 

approximately 11:30 a.m. (Chicago Time) to 3:15 

p.m. (Chicago Time)). However, the Exchange states 

that EAFE futures contracts will be trading during 

this time period and that the futures prices would 

be a proxy for the current MSCI EAFE Index level 

during this time period. The Exchange states that 

MSCI EAFE Mini Index futures contracts are listed 

for trading on the Intercontinental Exchange, Inc. 

(‘‘ICE’’) and other derivatives contracts on the MSCI 

EAFE Index are listed for trading in Europe. 

Similarly, the Exchange states that MSCI Emerging 

Markets Mini Index futures contracts are listed for 

trading on ICE and other derivatives contracts on 

the MSCI EM Index are listed for trading in Europe. 

17 15 U.S.C. 78f(b)(1). 

18 15 U.S.C. 78s(b)(2). 

19See supra note 15. 

20 15 U.S.C. 78s(b)(2). 

21 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

of the MSCI EAFE Index that are not 

subject to comprehensive surveillance 

agreements will not, in the aggregate, 

represent more than 20% of the weight 

of the index. With respect to the MSCI 

EM Index, non-U.S. component 

securities that are not subject to 

comprehensive surveillance agreements 

must not, in the aggregate, represent 

more than 22.5% of the weight of the 

index. 

The proposed listing standards 

require that, during the time options on 

the MSCI EAFE Index and the MSCI EM 

Index are traded on the Exchange, the 

current index value is widely 

disseminated at least once every 15 

seconds by one or more major market 

data vendors. However, the Exchange 

may continue to trade MSCI EAFE Index 

options after trading in all component 

securities has closed for the day and the 

index level is no longer widely 

disseminated at least once every 15 

seconds by one or more major market 

data vendors, provided that EAFE 

futures contracts are trading and prices 

for those contracts may be used as a 

proxy for the current index value.16

In addition, the proposed listing 

standards require the Exchange to 

reasonably believe that it has adequate 

system capacity to support the trading 

of options on the MSCI EAFE Index and 

the MSCI EM Index. As noted above, the 

Exchange represents that it believes it 

and the OPRA have the necessary 

systems capacity to handle the 

additional traffic associated with the 

listing of new series that would result 

from the introduction of MSCI EAFE 

and MSCI EM Index options. 

As a national securities exchange, the 

Exchange is required, under Section 

6(b)(1) of the Act,17 to enforce 

compliance by its members, and persons 

associated with its members, with the 

provisions of the Act, Commission rules 

and regulations thereunder, and its own 

rules. As noted above, the Exchange 

states that, except as modified by the 

proposal, Exchange Rules in Chapters I 

through XIX, XXIV, XXIVA, and XXIVB 

would equally apply to MSCI EAFE and 

MSCI EM Index options. The Exchange 

also states that MSCI EAFE and MSCI 

EM Index options would be subject to 

the same rules that currently govern 

other CBOE index options, including 

sales practice rules, margin 

requirements, and trading rules. 

The Commission further believes that 

the Exchange’s proposed position and 

exercise limits, trading hours, margin, 

strike price intervals, minimum tick 

size, series openings, and other aspects 

of the proposed rule change are 

appropriate and consistent with the Act. 

IV. Accelerated Approval of Proposed 

Rule Change, as Modified by 

Amendment No. 1 

The Commission finds good cause, 

pursuant to Section 19(b)(2) of the 

Act,18 for approving the proposed rule 

change, as modified by Amendment No. 

1, prior to the 30th day after the date of 

publication of notice in the Federal 

Register. As noted above, the 

Commission previously approved the 

listing and trading of options on the 

MSCI EAFE Index and the MSCI EM 

Index on another exchange,19 and the 

current proposal is substantially similar 

to the rules that were approved by the 

Commission. The prior proposals and 

the current proposal were each subject 

to a full 21-day comment period and no 

comments were received on any of the 

proposals. 

The Exchange requested that the 

Commission accelerate approval of the 

proposal. The Exchange believes that 

accelerated approval by the Commission 

would enable these options to be 

brought to market sooner, which would 

broaden trading and hedging 

opportunities for investors by creating 

new options on indexes that are 

demonstrably popular. 

The Commission finds that good 

cause exists to approve the proposal, as 

modified by Amendment No. 1, on an 

accelerated basis. 

V. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,20 that the 

proposed rule change (SR–CBOE–2015– 

023), as modified by Amendment No. 1, 

be, and hereby is, approved on an 

accelerated basis. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.21

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–08453 Filed 4–13–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74680; File No. SR– 

NASDAQ–2015–029] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Modify 

NASDAQ Rule 7051 Fees Relating to 

Pricing for Direct Circuit Connections 

April 8, 2015. 

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

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on March 26, 

2015, The NASDAQ Stock Market LLC 

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

the Securities and Exchange 

Commission (‘‘SEC’’ or ‘‘Commission’’) 

the proposed rule change as described 

in Items I and II below, which Items 

have been prepared by the Exchange. 

The Commission is publishing this 

notice to solicit comments on the 

proposed rule change from interested 

persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

NASDAQ is proposing to amend Rule 

7051 to increase installation and 

monthly fees assessed for Direct Circuit 

Connection to NASDAQ, and to waive 

certain installation fees thereunder for a 

limited time. The exchange will 

implement the proposed changes on 

April 1, 2015. 

The text of the proposed rule change 

is available at http://

nasdaq.cchwallstreet.com at NASDAQ’s 

principal office, and at the 

Commission’s Public Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

NASDAQ 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 those 


asabaliauskas on DSK5VPTVN1PROD with NOTICES
20036 Federal Register / Vol. 80, No. 71 / Tuesday, April 14, 2015 / Notices 

3Market participants may also connect to 

NASDAQ through the colocation facility or third 

parties. Direct connectivity is offered through data 

centers in Carteret, NJ, Secaucus, NJ, Ashburn, VA, 

and Chicago, IL. 

4See Securities Exchange Act Release No. 62663 

(August 9, 2010), 75 FR 49543 (August 13, 2010) 

(SR–NASDAQ–2010–077). 

5As defined in Rule 4751(a). 

6The term ‘‘latency’’ for the purposes of this rule 

filing means a measure of the time it takes for an 

order to enter into a switch and then exit for entry 

into the System. 

7Each of NASDAQ’s connection offerings use 

[sic] different switches, but the switches are of 

uniform type within each offering (i.e., all 1G 

connectivity options currently use the same 

switches). As a consequence, all client subscribers 

to a particular connectivity option receive the same 

latency in terms of the capabilities of their switches. 

8Supra note 4. 

9See Securities Exchange Act Release No. 72811 

(August 11, 2014), 79 FR 48262 (August 15, 2014) 

(SR–NASDAQ–2014–079). 

10 15 U.S.C. 78f. 

11 15 U.S.C. 78f(b)(4) and (5). 12See Rule 7034(b). 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

forth in sections A, B, and C below, of 

the most significant parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

NASDAQ is proposing to amend Rule 

7051 entitled ‘‘Direct Connectivity to 

Nasdaq’’ to increase the installation and 

monthly fees assessed for 1Gb and 10Gb 

connectivity to the Exchange. Direct 

connectivity offers market participants 

one of several means by which they may 

connect to NASDAQ.3 Currently, the 

Exchange offers a 10Gb circuit 

connection, a 1Gb circuit connection, 

and a 1Gb Ultra connection, all of which 

provide connectivity to the NASDAQ 

System.4 The offerings are differentiated 

by the total capacity of the fiber 

connection (represented in Gigabytes or 

‘‘Gb’’) and the type of switch used. A 

switch is a type of network hardware 

that acts as the ‘‘gatekeeper’’ for all 

clients’ orders sent to the System 5 and 

orders them in sequence for entry into 

the System for execution. The 1Gb 

‘‘Ultra’’ fiber connection offering uses 

lower latency 6 switches than the 1Gb 

fiber connection offering.7

The Exchange assesses separate 

installation and ongoing monthly fees 

for subscription to each option. For 1Gb 

connectivity, the Exchange assesses an 

installation fee of $1,000 and ongoing 

monthly fees of $1,000. For 10Gb 

connectivity, the Exchange charges an 

installation fee of $1,000 and ongoing 

monthly fees of $5,000. For 1Gb Ultra, 

the Exchange charges an installation fee 

of $1,500 and ongoing monthly fees of 

$1,500. The Exchange adopted 10Gb 

and 1Gb offering and related fees in 

August 2010, and has not increase [sic] 

fees for these offerings since.8 The 

Exchange adopted 1Gb Ultra in August 

2014, and has not increased fees for the 

offering since.9

In light of increased costs in offering 

these fiber connectivity options, and 

declining subscribership to 1Gb 

connectivity, the Exchange is proposing 

to increase the fees assessed for all three 

of the offerings. In terms of installation 

fees, the Exchange is proposing to 

harmonize the cost of installation by 

increasing the installation fees assessed 

for 10Gb and 1Gb connectivity from 

$1,000 to $1,500, which is the fee 

currently assessed for installation of 

1Gb Ultra connectivity. The Exchange is 

proposing to waive the installation fees 

for the months of April through July, 

2015, for all three connectivity options. 

As such, both new subscriptions and 

customers transferring from one 

connectivity option to another during 

that time will not be assessed the 

installation fee. The Exchange notes that 

this will allow customers to move from 

one offering to another, or to move the 

location of their connectivity from one 

direct connectivity access point to 

another, with no penalty in the form of 

an installation fee. 

The Exchange is also proposing to 

increase the ongoing monthly fees for 

each connectivity option. Specifically, 

the Exchange is proposing to increase 

the ongoing monthly fees for 10Gb 

connectivity from $5,000 to $7,500. The 

Exchange is proposing to increase the 

ongoing monthly fee for 1Gb 

connectivity from $1,000 to $2,500. 

Lastly, the Exchange is proposing to 

increase the ongoing monthly fee for 

1Gb Ultra from $1,500 to $2,500. 

2. Statutory Basis 

NASDAQ believes that the proposed 

rule change is consistent with the 

provisions of Section 6 of the Act,10 in 

general, and with Sections 6(b)(4) and 

6(b)(5) of the Act,11 in particular, in that 

it provides for the equitable allocation 

of reasonable dues, fees and other 

charges among members and issuers and 

other persons using any facility or 

system which NASDAQ operates or 

controls, and is not designed to permit 

unfair discrimination between 

customers, issuers, brokers, or dealers. 

The Exchange believes that the 

proposed increased fees are reasonable 

because they allow the Exchange to 

realign the fees assessed for the service 

with the costs incurred by NASDAQ in 

offering the service, which have 

increased since the offerings were first 

adopted. Specifically, NASDAQ has 

incurred increases in the cost of labor 

and networks in the installation and 

maintenance of equipment. The 

Exchange notes that the 1Gb and 10Gb 

infrastructures have been upgraded over 

the last 5 years with improvements in 

network performance along with a 

continued increase in bandwidth 

capacity constraints due to market data 

feeds growing. Consequently, this has 

resulted in higher networking costs that 

NASDAQ is now proposing to pass on 

through connectivity fees. In terms of 

labor, installation effort and costs have 

increased, which include NASDAQ data 

center operations and network 

engineering teams in multiple locations, 

data center vendor costs, and optical 

equipment that needs to be purchased, 

installed and maintained. The Exchange 

notes that it is not increasing the charge 

for installation of 1Gb Ultra connectivity 

because the fee implemented in 2014 

already incorporated these elevated 

costs and continues to cover the 

installation costs. 

The Exchange also believes that the 

proposed increases in the ongoing 

monthly fees for all three connectivity 

options are reasonable. The Exchange 

notes that it is increasing the ongoing 

monthly fees for each of the 

connectivity options in light of the 

higher networking and labor costs 

NASDAQ incurs in supporting the 

services. In addition, the Exchange has 

lost subscribers to the 1Gb connectivity 

option, which has resulted in fewer 

subscribers over which to spread the 

fixed costs of the service. As a 

consequence, the Exchange believes that 

it is reasonable to increase the monthly 

charge more than it is increasing the 

monthly charge for the 1Gb Ultra 

connectivity offering, which will result 

in the same monthly charge for both 

1Gb and 1Gb Ultra connectivity 

offerings but will allow NASDAQ to 

compensate for the lower subscribership 

of the 1Gb connectivity option. The 

Exchange notes that the fees are similar 

to the fees NASDAQ charges member 

firms for co-location connectivity.12

Lastly, the proposed fees are comparable 

to the fees charged for similar 

connectivity by other exchanges. For 

example, the International Securities 

Exchange LLC (‘‘ISE’’) offers four 

connectivity options that provide access 

to its two markets. ISE charges the 

following monthly fees for connectivity: 

$750 for its 1Gb option, $4,000 for its 

10Gb option, $7,000 for its 10Gb low 

latency option, and $12,500 for its 40Gb 


asabaliauskas on DSK5VPTVN1PROD with NOTICES
Federal Register / Vol. 80, No. 71 / Tuesday, April 14, 2015 / Notices 20037 

13See ISE Fee Schedule, Section IV.B. available 

at http://www.ise.com/fees. 

14 15 U.S.C. 78f(b)(8). 

15 15 U.S.C. 78s(b)(3)(A)(ii). 

low latency option. The Exchange notes 

that its connectivity options provide 

access to three exchanges (NASDAQ, 

NASDAQ OMX BX and NASDAQ OMX 

PHLX), which is reflected in the 

premium above the comparable ISE 

connectivity.13

The Exchange believes that the fees 

for these services are equitably allocated 

consistent with Section 6(b)(4) of the 

Act and are non-discriminatory 

consistent with Section 6(b)(5) of the 

Act in that all direct connect clients are 

offered the same service and there is no 

differentiation among them with regard 

to the fees charged for such services. In 

particular, the proposed fees are 

equitably allocated because all member 

firms that subscribe to a particular 

connectivity option under the rule will 

be assessed the same fee. The proposed 

installation fees are [sic] and are not 

unfairly discriminatory because the 

Exchange is increasing the fees for each 

service in amounts that are reflective of 

the increased costs associated with 

offering each of the connectivity 

options, and are in amounts 

representative of the value provided to 

their subscribers. The proposed waiver 

of the installation fees is both equitable 

and not unfairly discriminatory because 

it will allow all subscribers the option 

to subscribe to another connectivity 

offering, to the extent the proposed 

connectivity fees of their existing 

connections are deemed too high in 

relationship to the benefit received. 

With regard to the ongoing monthly fee 

increases, the 10Gb connectivity option 

provides the fastest connectivity option 

with the greatest capacity and also 

represents the greatest cost to NASDAQ 

in offering it among the three options. 

Accordingly, NASDAQ is increasing the 

fee the most to users that receive the 

greatest benefit. As noted above, 

NASDAQ is increasing the 1Gb ongoing 

monthly fees more than the 1Gb Ultra 

connectivity option, which provides the 

same capacity but lower latency than 

the 1Gb option. The Exchange believes 

that the proposed increase in the 1Gb 

connectivity option monthly fee is both 

an equitable allocation of a fee and not 

unfairly discriminatory because lower 

subscribership to the option has 

resulted in fewer subscribers to bear the 

increased costs of offering the service. 

The Exchange notes that should a 

particular exchange charges [sic] 

excessive fees for direct connectivity 

services affected members will opt to 

terminate their direct connectivity 

arrangements with that exchange, and 

pursue a range of alternative trading 

strategies not dependent upon the 

exchange’s direct connectivity services. 

Accordingly, the exchange charging 

excessive fees would stand to lose not 

only direct connectivity revenues, but 

also any other revenues associated with 

the customer’s operations. Moreover, all 

of the Exchange’s fees for these services 

are equitably allocated consistent with 

Section 6(b)(4) of the Act and consistent 

with Section 6(b)(5) of the Act are nondiscriminatory in that all direct connect 

clients are offered the same service and 

there is no differentiation among them 

with regard to the fees charged for such 

services. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will result in 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act, as 

amended.14 As discussed above, the 

Exchange believes that the proposed 

fees for direct connectivity services are 

comparable to the fees charged for the 

same service provided to other 

exchanges’ customers. Additionally, 

such costs are constrained by the robust 

competition for order flow among 

exchanges and non-exchange markets, 

because direct connectivity exists to 

advance that competition, and excessive 

fees for direct connectivity services 

would serve to impair an exchange’s 

ability to compete for order flow. 

Therefore, the Exchange believes that 

the proposed rule change enhances, 

rather than burdens, competition. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants or Others 

Written comments were neither 

solicited nor received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing change has become 

effective pursuant to Section 

19(b)(3)(A)(ii) of the Act.15 At any time 

within 60 days of the filing of the 

proposed rule change, the Commission 

summarily may temporarily suspend 

such rule change if it appears to the 

Commission that such action is: (i) 

Necessary or appropriate in the public 

interest; (ii) for the protection of 

investors; or (iii) otherwise in 

furtherance of the purposes of the Act. 

If the Commission takes such action, the 

Commission shall institute proceedings 

to determine whether the proposed rule 

should be approved or disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

NASDAQ–2015–029 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street NE., 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–NASDAQ–2015–029. This 

file number should be included on the 

subject line if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

Internet Web site (http://www.sec.gov/

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for Web site viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE., 

Washington, DC 20549, on official 

business days between the hours of 

10:00 a.m. and 3:00 p.m. Copies of the 

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change; 

the Commission does not edit personal 

identifying information from 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR– 

NASDAQ–2015–029 and should be 

submitted on or before May 5, 2015. 


asabaliauskas on DSK5VPTVN1PROD with NOTICES
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 


asabaliauskas on DSK5VPTVN1PROD with NOTICES