2704 Federal Register / Vol. 83, No. 12 / Thursday, January 18, 2018 / Notices 

30 15 U.S.C. 78s(b)(3)(A). 

31 17 CFR 240.19b–4(f)(2). 

32 15 U.S.C. 78s(b)(2)(B). 33 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

Exchange notes that it operates in a 

highly competitive market in which 

market participants can readily favor 

competing venues. In such an 

environment, the Exchange must 

continually review, and consider 

adjusting, its fees and credits to remain 

competitive with other exchanges. For 

the reasons described above, the 

Exchange believes that the proposed 

rule change reflects this competitive 

environment. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were solicited 

or received with respect to the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change is effective 

upon filing pursuant to Section 

19(b)(3)(A) 30 of the Act and 

subparagraph (f)(2) of Rule 19b–4 31

thereunder, because it establishes a due, 

fee, or other charge imposed by the 

Exchange. 

At any time within 60 days of the 

filing of such proposed rule change, the 

Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. If the 

Commission takes such action, the 

Commission shall institute proceedings 

under Section 19(b)(2)(B) 32 of the Act to 

determine whether the proposed rule 

change 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– 

NYSEAMER–2017–42 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–NYSEAMER–2017–42. 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 website (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 website 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. 

Persons submitting comments are 

cautioned that we do not redact or edit 

personal identifying information from 

comment submissions. You should 

submit only information that you wish 

to make available publicly. All 

submissions should refer to File 

Number SR–NYSEAMER–2017–42 and 

should be submitted on or before 

February 8, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.33

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–00723 Filed 1–17–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–82484; File No. SR– 

CboeBZX–2018–001] 

Self-Regulatory Organizations; Cboe 

BZX Exchange, Inc.; Notice of Filing of 

a Proposed Rule Change To List and 

Trade Shares of the GraniteShares 

Bitcoin ETF and the GraniteShares 

Short Bitcoin ETF, a Series of the 

GraniteShares ETP Trust, Under Rule 

14.11(f)(4), Trust Issued Receipts 

January 11, 2018. 

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

Securities Exchange Act of 1934 (the 

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

notice is hereby given that on January 5, 

2018, Cboe BZX Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘BZX’’) filed with the 

Securities and Exchange Commission 

(‘‘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 

The Exchange filed a proposal to list 

and trade shares of the GraniteShares 

Bitcoin ETF and the GraniteShares 

Short Bitcoin ETF (each a ‘‘Fund’’ and, 

collectively, the ‘‘Funds’’), a series of 

the GraniteShares ETP Trust (the 

‘‘Trust’’), under Rule 14.11(f)(4) (‘‘Trust 

Issued Receipts’’). The shares of the 

Funds are referred to herein as the 

‘‘Shares.’’ 

The text of the proposed rule change 

is available at the Exchange’s website at 

www.markets.cboe.com, at the principal 

office of the Exchange, 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, the 

Exchange 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 

Exchange has prepared summaries, set 

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

the most significant parts of such 

statements. 


sradovich on DSK3GMQ082PROD with NOTICES
Federal Register / Vol. 83, No. 12 / Thursday, January 18, 2018 / Notices 2705 

3Rule 14.11(f)(4) applies to Trust Issued Receipts 

that invest in ‘‘Financial Instruments.’’ The term 

‘‘Financial Instruments,’’ as defined in Rule 

14.11(f)(4)(A)(iv), means any combination of 

investments, including cash; securities; options on 

securities and indices; futures contracts; options on 

futures contracts; forward contracts; equity caps, 

collars and floors; and swap agreements. 

4The Commission approved BZX Rule 14.11(f)(4) 

in Securities Exchange Act Release No. 68619 

(January 10, 2013), 78 FR 3489 (January 16, 2013) 

(SR–BATS–2012–044). 

5 15 U.S.C. 80a–1. 

6 17 U.S.C. 1. 

7See Registration Statement on Form S–1, dated 

December 15, 2017 (File No. 333–222109). The 

descriptions of the Trust and the Shares contained 

herein are based, in part, on information in the 

Registration Statement. 

8Section 1a(9) of the CEA defines commodity to 

include, among other things, ‘‘all services, rights, 

and interests in which contracts for future delivery 

are presently or in the future dealt in.’’ The 

definition of commodity is broad. 7 U.S.C. 1a(9). 9See ‘‘CFTC Statement on Self-Certification of 

Bitcoin Products by CME, CFE and Cantor 

Exchange,’’ dated December 1, 2017, available at 

http://www.cftc.gov/PressRoom/PressReleases/ 

pr7654-17. 10Bitcoin is a digital asset based on the 

decentralized, open source protocol of the peer-topeer bitcoin computer network (the ‘‘Bitcoin 

Network’’). No single entity owns or operates the 

Bitcoin Network; the infrastructure is collectively 

maintained by a decentralized user base. The 

Bitcoin Network is accessed through software, and 

software governs bitcoin’s creation, movement, and 

ownership. The value of bitcoin is determined by 

the supply of and demand for bitcoin on websites 

that facilitate the transfer of bitcoin in exchange for 

government-issued currencies, and in private enduser-to-end-user transactions. 

11Bitcoin is a commodity as defined in Section 

1a(9) of the CEA. 7 U.S.C. 1a(9). See In re Coinflip, 

Inc., No. 15–29 (CFTC Sept. 17, 2015), available at: 

http://www.cftc.gov/ucm/groups/public/@

lrenforcementactions/documents/legalpleading/ 

enfcoinfliprorder09172015.pdf. 

12The XBT Futures are cash-settled futures 

contracts based on the auction price of bitcoin in 

U.S. dollars on the Gemini Exchange that will 

expire on a weekly, monthly and quarterly basis. 

XBT Futures are designed to reflect economic 

exposure related to the price of bitcoin. XBT 

Futures began trading on December 10, 2017. 

13The CME Futures are also cash-settled futures 

contracts based on the CME CF Bitcoin Reference 

Rate, which is based on an aggregation of trade flow 

from several bitcoin spot exchanges, that will expire 

on a monthly and quarterly basis. CME Futures 

began trading on December 17, 2017. 

14CFE and CME are registered with the CFTC and 

seek to provide a neutral, regulated marketplace for 

the trading of derivatives contracts for commodities, 

such as futures, options and certain swaps. Both the 

CFE and CME are both members of the Intermarket 

Surveillance Group (‘‘ISG’’). 

15A ‘‘single day’’ is measured from the time a 

Fund calculates its net asset value (‘‘NAV’’) to the 

time of the Fund’s next NAV calculation. The NAV 

calculation time for the Funds will typically be 4:00 

p.m. Eastern time. 

16The term ‘‘Normal Market Conditions’’ 

includes, but is not limited to, the absence of 

trading halts in the applicable financial markets 

generally; operational issues causing dissemination 

of inaccurate market information or system failures; 

or force majeure type events such as natural or manmade disaster, act of God, armed conflict, act of 

terrorism, riot or labor disruption, or any similar 

intervening circumstance. 

17 ‘‘Cash and Cash Equivalents’’ means short-term 

instruments with maturities of less than three 

months, including: (i) U.S. Government securities, 

including bills, notes, and bonds differing as to 

maturity and rates of interest, which are either 

issued or guaranteed by the U.S. Treasury or by U.S. 

Government agencies or instrumentalities; (ii) 

certificates of deposit issued against funds 

deposited in a bank or savings and loan association; 

(iii) bankers acceptances, which are short-term 

credit instruments used to finance commercial 

Continued 

(A) Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to list and 

trade shares of the GraniteShares 

Bitcoin ETF (the ‘‘Long Fund’’) and the 

GraniteShares Short Bitcoin ETF (the 

‘‘Short Fund’’) under Rule 14.11(f)(4), 

which governs the listing and trading of 

Trust Issued Receipts 3 on the 

Exchange.4

The Shares will be offered by the 

Trust, which was established as a 

Delaware statutory trust on November 7, 

2016. The Trust will not be registered as 

an investment company under the 

Investment Company Act of 1940 and is 

not required to register under such act.5

The Trust is registered as a commodity 

pool under the Commodity Exchange 

Act (‘‘CEA’’).6 The Shares of the Trust 

will be registered with the Commission 

by means of the Trust’s registration 

statement on Form S–1 (the 

‘‘Registration Statement’’) under the 

Securities Act of 1933 (the ‘‘Securities 

Act’’). The Registration Statement was 

filed on December 15, 2017 and the 

Registration Statement will be effective 

as of the date of any offer and sale 

pursuant to the Registration Statement.7

GraniteShares Advisors LLC (the 

‘‘Sponsor’’) serves as the Trust’s sponsor 

and commodity pool operator and is a 

member of the National Futures 

Association (the ‘‘NFA’’). As a member 

of the NFA, the Sponsor is subject to 

NFA standards relating to fair trade 

practices, financial condition, and 

consumer protection. Bank of New York 

Mellon serves as administrator, 

custodian, and transfer agent for the 

Funds. Foreside Fund Services, LLC 

(‘‘Marketing Agent’’) serves as the 

distributor for the Trust. 

The Funds are not actively managed 

by traditional methods (e.g., by effecting 

changes in the composition of a 

portfolio on the basis of judgments 

relating to economic, financial and 

market considerations with a view 

toward obtaining positive results under 

all market conditions) other than for 

cash management purposes and the 

rolling methodology employed by the 

Sponsor described below. 

Bitcoin Futures Contracts 

Prior to listing a new commodity 

futures contract, a designated contract 

market must either submit a selfcertification to the CFTC that the 

contract complies with the CEA and 

CFTC regulations or voluntarily submit 

the contract for CFTC approval. This 

process applies to all futures contracts 

and all commodities underlying the 

futures contracts, whether the new 

futures contracts are related to oil, gold, 

or any other commodity.8 On December 

1, 2017, it was announced 9 that both 

Cboe Futures Exchange, Inc. (‘‘CFE’’) 

and Chicago Mercantile Exchange, Inc. 

(‘‘CME’’) had self-certified with the 

CFTC new contracts for bitcoin 10

futures products.11 While the CFE 

bitcoin futures contracts (‘‘XBT 

Futures’’ and the ‘‘Benchmark Futures 

Contracts’’) 12 and the CME bitcoin 

futures contracts (‘‘CME Futures’’) 13

will differ in certain of their 

implementation details, both contracts 

will generally trade and settle like any 

other cash-settled commodity futures 

contracts.14

As such, the Exchange is proposing to 

list and trade the Funds under Rule 

14.11(f)(4), which governs the listing 

and trading of Trust Issued Receipts on 

the Exchange. 

GraniteShares Bitcoin ETF 

The Long Fund seeks as its 

investment objective results (before fees 

and expenses) that, both for a single 

day 15 and over time, match the 

performance of lead month Benchmark 

Futures Contracts. By being long Bitcoin 

Futures Contracts, as defined below, the 

Long Fund seeks to benefit from daily 

increases in the price of the Bitcoin 

Futures Contracts and will lose value 

when the price of the Bitcoin Futures 

Contracts decline. 

GraniteShares Short Bitcoin ETF 

The Short Fund seeks to provide 

investment results that, on a daily basis 

correspond (before fees and expenses) to 

the inverse (-1x) of the daily 

performance of the Benchmark Futures 

Contracts for a single day. By being 

short Bitcoin Futures Contracts, as 

defined below, the Short Fund seeks to 

benefit from daily decreases in the price 

of the Bitcoin Futures Contracts and 

will lose value when the price of the 

Bitcoin Futures Contracts increase. 

Investment Strategies 

Each Fund will, under Normal Market 

Conditions,16 hold substantially all of 

its assets in the Benchmark Futures 

Contracts and cash and Cash 

Equivalents 17 (which are used to 


sradovich on DSK3GMQ082PROD with NOTICES
2706 Federal Register / Vol. 83, No. 12 / Thursday, January 18, 2018 / Notices 

transactions; (iv) repurchase agreements and reverse 

repurchase agreements; (v) bank time deposits, 

which are monies kept on deposit with banks or 

savings and loan associations for a stated period of 

time at a fixed rate of interest; (vi) commercial 

paper, which are short-term unsecured promissory 

notes; and (vii) money market funds. 

18The Funds will each include appropriate risk 

disclosure in its offering documents, including 

leveraging risk. Leveraging risk is the risk that 

certain transactions of a fund, including a fund’s 

use of derivatives, may give rise to leverage, causing 

a fund to be more volatile than if it had not been 

leveraged. 

collateralize the Benchmark Futures 

Contracts) in order to achieve its 

investment objective. Although the 

Funds generally intend to invest 

substantially all of their respective 

assets in Benchmark Futures Contracts, 

the Funds may invest in other U.S. 

exchange-listed bitcoin futures 

contracts, as available, in addition to the 

Benchmark Futures Contracts 

(collectively, with Benchmark Futures 

Contracts, the ‘‘Bitcoin Futures 

Contracts’’). In the event that position 

price, or accountability limits are 

reached with respect to Bitcoin Futures 

Contracts, each Fund may invest in U.S. 

listed swaps on bitcoin or the 

Benchmark Futures Contracts (‘‘Listed 

Bitcoin Swaps’’). In the event that 

position price or accountability limits 

are reached with respect to Listed 

Bitcoin Swaps, each Fund may invest in 

OTC swaps on bitcoin or the Benchmark 

Futures Contracts. 

Each Fund intends to enter into swap 

agreements only with major, global 

financial institutions that meet certain 

credit quality standards and monitoring 

policies. The Funds will each use 

various techniques to minimize credit 

risk, including posting collateral daily 

that is marked to market, using different 

counterparties, and limiting the net 

amount due from any individual 

counterparty. 

Bitcoin Futures Contracts are 

measures of the market’s expectation of 

the price of bitcoin at certain points in 

the future, and as such will behave 

differently than current or spot bitcoin 

prices. The Funds are not linked to 

bitcoin and in many cases the Funds 

could significantly underperform or 

outperform the price of bitcoin. 

The Funds do not intend to hold 

Bitcoin Futures Contracts through 

expiration, but instead intend to either 

close or ‘‘roll’’ their respective 

positions. When the market for these 

contracts is such that the prices are 

higher in the more distant delivery 

months than in the nearer delivery 

months, the sale during the course of 

the ‘‘rolling process’’ of the more nearby 

contract would take place at a price that 

is lower than the price of the more 

nearby Bitcoin Futures Contracts would 

take place at a price that is lower than 

the price of the more distant Bitcoin 

Futures Contracts [sic]. This pattern of 

higher futures prices for longer 

expiration Bitcoin Futures Contracts is 

referred to as ‘‘contango.’’ Alternatively, 

when the market for certain Bitcoin 

Futures Contracts is such that the prices 

are higher in the nearer months than in 

the more distant months, the sale during 

the course of the ‘‘rolling process’’ of the 

more nearby Bitcoin Futures Contracts 

would take place at a price that is higher 

than the price of the more distant 

Bitcoin Futures Contracts. This pattern 

of higher future prices for shorter 

expiration Bitcoin Futures Contracts is 

referred to as ‘‘backwardation.’’ The 

presence of contango in the relevant 

Bitcoin Futures Contracts at the time of 

rolling would be expected to adversely 

affect the long positions held by the 

Long Fund, and positively affect the 

short positions held by the Short Fund. 

Similarly, the presence of 

backwardation in Bitcoin Futures 

Contracts at the time of rolling such 

Bitcoin Futures Contracts would be 

expected to adversely affect the short 

positions held by the Short Fund and 

positively affect the long positions held 

by the Long Fund. 

Each Fund’s investments will be 

consistent with its investment objective 

and will not be used to enhance 

leverage (although certain derivatives 

and other investments may result in 

leverage).18 Each Fund’s investments 

will not be used to seek performance 

that is the multiple or inverse multiple 

(i.e. 2x or -2x) of the Index. Each Fund’s 

use of derivative instruments will be 

collateralized. 

Policy Considerations 

The Exchange recognizes that certain 

policy concerns exist as it relates to any 

series of Trust Issued Receipts that are 

listed on the Exchange, but that these 

concerns, as well as certain other 

concerns raised by this proposal 

specifically, are mitigated as it relates to 

the Funds and their holdings for the 

reasons enumerated below. 

First, the Exchange believes that the 

policy concerns related to an underlying 

reference asset and its susceptibility to 

manipulation are mitigated as it relates 

to bitcoin because the very nature of the 

bitcoin ecosystem makes manipulation 

of bitcoin difficult. The geographically 

diverse and continuous nature of bitcoin 

trading makes it difficult and 

prohibitively costly to manipulate the 

price of bitcoin and, in many instances, 

that the bitcoin market is generally less 

susceptible to manipulation than the 

equity, fixed income, and commodity 

futures markets. There are a number of 

reasons this is the case, including that 

there is not inside information about 

revenue, earnings, corporate activities, 

or sources of supply; it is generally not 

possible to disseminate false or 

misleading information about bitcoin in 

order to manipulate; manipulation of 

the price on any single venue would 

require manipulation of the global 

bitcoin price in order to be effective; a 

substantial over-the-counter market 

provides liquidity and shock-absorbing 

capacity; bitcoin’s 24/7/365 nature 

provides constant arbitrage 

opportunities across all trading venues; 

and it is unlikely that any one actor 

could obtain a dominant market share. 

Further, bitcoin is arguably less 

susceptible to manipulation than other 

commodities that underlie ETPs; there 

may be inside information relating to 

the supply of the physical commodity 

such as the discovery of new sources of 

supply or significant disruptions at 

mining facilities that supply the 

commodity that simply are inapplicable 

as it relates to bitcoin. Further, the 

Exchange believes that the 

fragmentation across bitcoin exchanges, 

the relatively slow speed of 

transactions, and the capital necessary 

to maintain a significant presence on 

each exchange make manipulation of 

bitcoin prices through continuous 

trading activity unlikely. Moreover, the 

linkage between the bitcoin markets and 

the presence of arbitrageurs in those 

markets means that the manipulation of 

the price of bitcoin price on any single 

venue would require manipulation of 

the global bitcoin price in order to be 

effective. Arbitrageurs must have funds 

distributed across multiple bitcoin 

exchanges in order to take advantage of 

temporary price dislocations, thereby 

making it unlikely that there will be 

strong concentration of funds on any 

particular bitcoin exchange. As a result, 

the potential for manipulation on a 

particular bitcoin exchange would 

require overcoming the liquidity supply 

of such arbitrageurs who are effectively 

eliminating any cross-market pricing 

differences. For all of these reasons, 

bitcoin is not particularly susceptible to 

manipulation, especially as compared to 

other approved ETP reference assets. 

Second, the Exchange believes that 

the policy concerns related to the 

susceptibility to manipulation of an 

underlying futures contract is, in 

addition to the arguments above, further 

mitigated by the significant liquidity 

that the Exchange expects to exist in the 

market for Bitcoin Futures Contracts. 

This belief is based on numerous 

conversations with market participants, 


sradovich on DSK3GMQ082PROD with NOTICES
Federal Register / Vol. 83, No. 12 / Thursday, January 18, 2018 / Notices 2707 

19The CFTC issued a press release on December 

1, 2017, noting the self-certifications from CFE and 

CME and highlighting the rigorous process that the 

CFTC had undertaken in its engagement with CFE 

and CME prior to the self-certification for the 

Bitcoin Futures Contracts. The press release focused 

on the ongoing surveillances that will occur on each 

listing exchange, including surveillance based on 

information sharing with the underlying cash 

bitcoin exchanges as well as the actions that the 

CFTC will undertake after the contracts are 

launched, including monitoring and analyzing the 

size and development of the market, positions and 

changes in positions over time, open interest, initial 

margin requirements, and variation margin 

payments, stress testing positions, conduct reviews 

of designated contract markets, derivatives clearing 

organizations, clearing firms, and individual traders 

involved in trading and clearing bitcoin futures. For 

more information, see http://www.cftc.gov/ 

PressRoom/PressReleases/pr7654-17. 

20The Adviser represents that, to the extent the 

Trust permits or requires a ‘‘cash in lieu’’ amount, 

such transactions will be effected in the same or 

equitable manner for all authorized participants. 

issuers, and discussions with personnel 

of CFE. This expected liquidity in the 

market for Bitcoin Futures Contracts 

combined with the CFE, CME, and 

Exchange surveillance procedures 

related to the Bitcoin Futures, the 

Shares, and CFTC oversight,19 along 

with the difficulty in manipulating the 

bitcoin market described above will 

mitigate the potential policy concerns 

and further prevent trading in the 

Shares from being susceptible to 

manipulation. 

Net Asset Value 

According to the Registration 

Statement, the net asset value (‘‘NAV’’) 

of the Shares of the Funds will be 

calculated by dividing the value of the 

net assets of the Fund (i.e., the value of 

its total assets less total liabilities) by 

the total number of Shares outstanding. 

Expenses and fees, including the 

management and administration fees, 

are accrued daily and taken into account 

for purposes of determining NAV. The 

NAV of each Fund is generally 

determined at 4:00 p.m. Eastern Time 

each business day when the Exchange is 

open for trading. If the Exchange or 

market on which the Fund’s 

investments are primarily traded closes 

early, the NAV may be calculated prior 

to its normal calculation time. Creation/ 

redemption transaction order time 

cutoffs (as further described below) 

would also be accelerated. 

Bitcoin Futures Contracts are 

generally valued at their settlement 

price as determined by the relevant 

exchange. Cash and Cash Equivalents 

will generally be valued at their market 

price using market quotations or 

information provided by a pricing 

service. Listed Bitcoin Swaps are 

generally valued at their settlement 

price as determined by the relevant 

swap execution facility. OTC swaps will 

be valued based on the then-current 

disseminated levels for the Bitcoin 

Futures Contracts or the applicable 

reference price for bitcoin applicable to 

the contract. 

For more information regarding the 

valuation of Fund investments in 

calculating a Fund’s NAV, see the 

Registration Statement. 

The Shares 

The Funds will issue and redeem 

Shares on a continuous basis at the NAV 

per Share only in large blocks of a 

specified number of Shares or multiples 

thereof (‘‘Creation Units’’) in 

transactions with authorized 

participants who have entered into 

agreements with the Distributor. The 

Adviser currently anticipates that a 

Creation Unit will consist of 10,000 

Shares, though this number may change 

from time to time, including prior to 

listing of the Shares. The exact number 

of Shares that will constitute a Creation 

Unit will be disclosed in the 

Registration Statement. Once created, 

Shares of the Funds may trade on the 

secondary market in amounts less than 

a Creation Unit. 

Although the Adviser anticipates that 

purchases and redemptions for Creation 

Units will generally be executed on an 

all-cash basis, the consideration for 

purchase of Creation Units of the Funds 

may consist of an in-kind deposit of a 

designated portfolio of assets (including 

any portion of such assets for which 

cash may be substituted) (i.e., the 

‘‘Deposit Assets’’), and the ‘‘Cash 

Component’’ computed as described 

below. Together, the Deposit Assets and 

the Cash Component constitute the 

‘‘Fund Deposit,’’ which represents the 

minimum initial and subsequent 

investment amount for a Creation Unit 

of the Fund. The specific terms 

surrounding the creation and 

redemption of shares are at the 

discretion of the Adviser. 

The Deposit Assets and Fund 

Securities (as defined below), as the 

case may be, in connection with a 

purchase or redemption of a Creation 

Unit, generally will correspond pro rata, 

to the extent practicable, to the assets 

held by the Funds. 

The Cash Component will be an 

amount equal to the difference between 

the NAV of the Shares (per Creation 

Unit) and the ‘‘Deposit Amount,’’ which 

will be an amount equal to the market 

value of the Deposit Assets, and serve to 

compensate for any differences between 

the NAV per Creation Unit and the 

Deposit Amount. The Funds generally 

offer Creation Units partially or entirely 

for cash. The Adviser will make 

available through the National 

Securities Clearing Corporation 

(‘‘NSCC’’) on each business day, prior to 

the opening of business on the 

Exchange, the list of names and the 

required number or par value of each 

Deposit Asset and the amount of the 

Cash Component to be included in the 

current Fund Deposit (based on 

information as of the end of the 

previous business day) for the Fund. 

The identity and number or par value 

of the Deposit Assets may change 

pursuant to changes in the composition 

of a Fund’s portfolio as rebalancing and 

rolling adjustments and corporate action 

events occur from time to time. The 

composition of the Deposit Assets may 

also change in response to adjustments 

to the weighting or composition of the 

holdings of the Fund. 

The Fund reserves the right to permit 

or require the substitution of a ‘‘cash in 

lieu’’ amount to be added to the Cash 

Component to replace any Deposit Asset 

that may not be available in sufficient 

quantity for delivery or that may not be 

eligible for transfer through the 

Depository Trust Company (‘‘DTC’’) or 

the clearing process through the 

NSCC.20

Except as noted below, all creation 

orders must be placed for one or more 

Creation Units and must be received by 

the Distributor at a time specified by the 

Adviser. The Fund currently intends 

that such orders must be received in 

proper form no later than 2:00 p.m. 

Eastern Time on the date such order is 

placed in order for creation of Creation 

Units to be effected based on the NAV 

of Shares of each Fund as next 

determined on such date after receipt of 

the order in proper form. The 

‘‘Settlement Date’’ is generally the 

second business day after the 

transmittal date. On days when the 

Exchange or the futures markets close 

earlier than normal, the Funds may 

require orders to create or to redeem 

Creation Units to be placed earlier in the 

day. 

Fund Deposits must be delivered 

through either the Continuous Net 

Settlement facility of the NSCC, the 

Federal Reserve System (for cash and 

government securities), through DTC 

(for corporate securities), or through a 

central depository account, such as with 

Euroclear or DTC, maintained by each 

Fund’s Custodian (a ‘‘Central Depository 

Account’’), in any case at the discretion 

of the Adviser, by an authorized 

participant. Any portion of a Fund 

Deposit that may not be delivered 

through the NSCC, Federal Reserve 

System or DTC must be delivered 

through a Central Depository Account. 


sradovich on DSK3GMQ082PROD with NOTICES
2708 Federal Register / Vol. 83, No. 12 / Thursday, January 18, 2018 / Notices 

21The Bid/Ask Price of each Fund will be 

determined using the midpoint of the highest bid 

and the lowest offer on the Exchange as of the time 

of calculation of the Fund’s NAV. The records 

relating to Bid/Ask Prices will be retained by the 

Funds and their service providers. 

22Regular Trading Hours are 9:30 a.m. to 4:00 

p.m. Eastern Time. 

23Under accounting procedures to be followed by 

the Funds, trades made on the prior business day 

(‘‘T’’) will be booked and reflected in NAV on the 

current business day (‘‘T+1’’). Accordingly, each 

Fund will be able to disclose at the beginning of the 

business day the portfolio that will form the basis 

for the NAV calculation at the end of the business 

day. 

24Currently, it is the Exchange’s understanding 

that several major market data vendors display and/ 

or make widely available Intraday Indicative Values 

published via the Consolidated Tape Association 

(‘‘CTA’’) or other data feeds. 

A standard creation transaction fee 

may be imposed to offset the transfer 

and other transaction costs associated 

with the issuance of Creation Units. 

Shares of the Funds may be redeemed 

only in Creation Units at their NAV next 

determined after receipt of a redemption 

request in proper form by the 

Distributor and only on a business day. 

The Adviser will make available 

through the NSCC, prior to the opening 

of business on the Exchange on each 

business day, the designated portfolio of 

assets (including any portion of such 

assets for which cash may be 

substituted) that will be applicable 

(subject to possible amendment or 

correction) to redemption requests 

received in proper form on that day 

(‘‘Fund Securities’’). The redemption 

proceeds for a Creation Unit generally 

will consist of a specified amount of 

cash less a redemption transaction fee. 

The Fund generally will redeem 

Creation Units entirely for cash. 

A standard redemption transaction fee 

may be imposed to offset transfer and 

other transaction costs that may be 

incurred by the Fund. 

Redemption requests for Creation 

Units of the Funds must be submitted to 

the Distributor by or through an 

authorized participant by a time 

specified by the Adviser. The Fund 

currently intends that such requests 

must be received no later than 3:30 p.m. 

Eastern Time on any business day, in 

order to receive that day’s NAV. The 

authorized participant must transmit the 

request for redemption in the form 

required by the Funds to the Distributor 

in accordance with procedures set forth 

in the authorized participant agreement. 

Additional information regarding the 

Shares and the Funds, including 

investment strategies, risks, creation and 

redemption procedures, fees and 

expenses, portfolio holdings disclosure 

policies, distributions, taxes and reports 

to be distributed to beneficial owners of 

the Shares can be found in the 

Registration Statement or on the website 

for the Funds 

(www.GraniteShares.com), as 

applicable. 

Availability of Information 

The Funds’ website, which will be 

publicly available prior to the public 

offering of Shares, will include a form 

of the prospectus for each Fund that 

may be downloaded. The websites will 

include additional quantitative 

information updated on a daily basis, 

including, for the Fund: (1) The prior 

business day’s reported NAV, the 

closing market price or the midpoint of 

the bid/ask spread at the time of 

calculation of such NAV (the ‘‘Bid/Ask 

Price’’),21 daily trading volume, and a 

calculation of the premium and 

discount of the closing market price or 

Bid/Ask Price against the NAV; and (2) 

data in chart format displaying the 

frequency distribution of discounts and 

premiums of the daily closing market 

price or Bid/Ask Price against the NAV, 

within appropriate ranges, for each of 

the four previous calendar quarters. 

Daily trading volume information will 

be available in the financial section of 

newspapers, through subscription 

services such as Bloomberg, Thomson 

Reuters, and International Data 

Corporation, which can be accessed by 

authorized participants and other 

investors, as well as through other 

electronic services, including major 

public websites. On each business day, 

before commencement of trading in 

Shares during Regular Trading Hours 22

on the Exchange, each Fund will 

disclose on its website the identities and 

quantities of the portfolio Bitcoin 

Futures Contracts and other assets (the 

‘‘Disclosed Portfolio’’) held by the Fund 

that will form the basis for the Fund’s 

calculation of NAV at the end of the 

business day.23 The Disclosed Portfolio 

will include, as applicable: Ticker 

symbol or other identifier, a description 

of the holding, identity of the asset upon 

which the derivative is based, the 

quantity of each security or other asset 

held as measured by select metrics, 

maturity date, coupon rate, effective 

date, market value and percentage 

weight of the holding in the portfolio. 

The website and information will be 

publicly available at no charge. 

In addition, for each Fund, an 

estimated value that reflects an 

estimated intraday value of the Fund’s 

portfolio (the ‘‘Intraday Indicative 

Value’’), will be disseminated. 

Moreover, the Intraday Indicative Value 

will be based upon the current value for 

the components of the Disclosed 

Portfolio and will be updated and 

widely disseminated by one or more 

major market data vendors at least every 

15 seconds during the Exchange’s 

Regular Trading Hours.24 In addition, 

the quotations of certain of each Fund’s 

holdings may not be updated for 

purposes of calculating Intraday 

Indicative Value during U.S. trading 

hours where the market on which the 

underlying asset is traded settles prior 

to the end of the Exchange’s Regular 

Trading Hours. 

The dissemination of the Intraday 

Indicative Value, together with the 

Disclosed Portfolio, will allow investors 

to determine the value of the underlying 

portfolio of each Fund on a daily basis 

and provide an estimate of that value 

throughout the trading day. 

Intraday price quotations on Cash 

Equivalents of the type held by the 

Funds are available from major brokerdealer firms and from third-parties, 

which may provide prices free with a 

time delay, or ‘‘live’’ with a paid fee. For 

Bitcoin Futures Contracts and Listed 

Bitcoin Swaps, such intraday 

information is available directly from 

the applicable listing venue. Intraday 

price information is also available 

through subscription services, such as 

Bloomberg and Thomson Reuters, 

which can be accessed by authorized 

participants and other investors. Pricing 

information related to Cash Equivalents 

will be available through issuer websites 

and publicly available quotation 

services such as Bloomberg, Markit and 

Thomson Reuters. 

Information regarding market price 

and volume of the Shares will be 

continually available on a real-time 

basis throughout the day on brokers’ 

computer screens and other electronic 

services. The previous day’s closing 

price and trading volume information 

for the Shares will be generally available 

daily in the print and online financial 

press. Quotation and last sale 

information for the Shares will be 

available on the facilities of the CTA. 

Initial and Continued Listing 

The Shares will be subject to BZX 

Rule 14.11(f)(4), which sets forth the 

initial and continued listing criteria 

applicable to Trust Issued Receipts that 

invest in Financial Instruments. The 

Exchange will obtain a representation 

that the Trust’s NAV will be calculated 

daily and that these values and 

information about the assets of the Trust 

will be made available to all market 

participants at the same time. The Trust 

currently expects that there will be at 

least 20,000 Shares outstanding at the 

time of commencement of trading on the 


sradovich on DSK3GMQ082PROD with NOTICES
Federal Register / Vol. 83, No. 12 / Thursday, January 18, 2018 / Notices 2709 

25The CFTC issued a press release on December 

1, 2017, noting the self-certifications from CFE and 

CME and highlighting the rigorous process that the 

CFTC had undertaken in its engagement with CFE 

and CME prior to the self-certification for the 

Bitcoin Futures Contracts. The press release focused 

on the ongoing surveillances that will occur on each 

listing exchange, including surveillance based on 

information sharing with the underlying cash 

bitcoin exchanges as well as the actions that the 

CFTC will undertake after the contracts are 

launched, including monitoring and analyzing the 

size and development of the market, positions and 

changes in positions over time, open interest, initial 

margin requirements, and variation margin 

payments, stress testing positions, conduct reviews 

of designated contract markets, derivatives clearing 

organizations, clearing firms, and individual traders 

involved in trading and clearing bitcoin futures. For 

more information, see http://www.cftc.gov/ 

PressRoom/PressReleases/pr7654-17. 

26For a list of the current members and affiliate 

members of ISG, see www.isgportal.com. The 

Exchange notes that not all components of the 

Disclosed Portfolio for each Fund may trade on 

markets that are members of ISG or with which the 

Exchange has in place a comprehensive 

surveillance sharing agreement. Not more than 10% 

of the net assets of a Fund in the aggregate invested 

in Bitcoin Futures Contracts shall consist of Bitcoin 

Futures Contracts whose principal market is not a 

member of the ISG or with which the Exchange has 

in place a comprehensive surveillance sharing 

agreement. 

27The Pre-Opening Session is from 8:00 a.m. to 

9:30 a.m. Eastern Time. 

28The After Hours Trading Session is from 4:00 

p.m. to 5:00 p.m. Eastern Time. 

Exchange. Upon termination of the 

Trust, the Shares will be removed from 

listing. The Trustee, Wilmington Trust 

Company, is a trust company having 

substantial capital and surplus and the 

experience and facilities for handling 

corporate trust business, as required 

under Rule 14.11(f)(2)(D)(iv)(a) and that 

no change will be made to the trustee 

without prior notice to and approval of 

the Exchange. 

As required in Rule 14.11(f)(4)(D), the 

Exchange notes that any registered 

market maker (‘‘Market Maker’’) in the 

Shares must file with the Exchange in 

a manner prescribed by the Exchange 

and keep current a list identifying all 

accounts for trading in an underlying 

commodity, related commodity futures 

or options on commodity futures, or any 

other related commodity derivatives, 

which the registered Market Maker may 

have or over which it may exercise 

investment discretion. No registered 

Market Maker shall trade in an 

underlying commodity, related 

commodity futures or options on 

commodity futures, or any other related 

commodity derivatives, in an account in 

which a registered Market Maker, 

directly or indirectly, controls trading 

activities, or has a direct interest in the 

profits or losses thereof, which has not 

been reported to the Exchange as 

required by this Rule. In addition to the 

existing obligations under Exchange 

rules regarding the production of books 

and records (see, e.g., Rule 4.2), the 

registered Market Maker in Trust Issued 

Receipts shall make available to the 

Exchange such books, records or other 

information pertaining to transactions 

by such entity or registered or nonregistered employee affiliated with such 

entity for its or their own accounts for 

trading the underlying physical 

commodity, related commodity futures 

or options on commodity futures, or any 

other related commodity derivatives, as 

may be requested by the Exchange. 

Trading Halts 

With respect to trading halts, the 

Exchange may consider all relevant 

factors in exercising its discretion to 

halt or suspend trading in the Shares. 

The Exchange will halt trading in the 

Shares under the conditions specified in 

BZX Rule 11.18. Trading may be halted 

because of market conditions or for 

reasons that, in the view of the 

Exchange, make trading in the Shares 

inadvisable. These may include: (1) The 

extent to which trading is not occurring 

in the bitcoin underlying the Shares; or 

(2) whether other unusual conditions or 

circumstances detrimental to the 

maintenance of a fair and orderly 

market are present. Trading in the 

Shares also will be subject to Rule 

14.11(f)(4)(C)(ii), which sets forth 

circumstances under which trading in 

the Shares may be halted and delisting 

proceedings commenced. 

Trading Rules 

The Exchange 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. BZX will allow trading 

in the Shares from 8:00 a.m. until 5:00 

p.m. Eastern Time. The Exchange has 

appropriate rules to facilitate 

transactions in the Shares during all 

trading sessions. As provided in BZX 

Rule 11.11(a) the minimum price 

variation for quoting and entry of orders 

in securities traded on the Exchange is 

$0.01 where the price is greater than 

$1.00 per share or $0.0001 where the 

price is less than $1.00 per share. 

Surveillance 

The Exchange believes that its 

surveillance procedures are adequate to 

properly monitor the trading of the 

Shares on the Exchange during all 

trading sessions and to deter and detect 

violations of Exchange rules and the 

applicable federal securities laws. 

Additionally, the Bitcoin Futures 

Contracts will be subject to the rules 

and surveillance programs of CFE, CME, 

and the CFTC.25 Trading of the Shares 

through the Exchange will be subject to 

the Exchange’s surveillance procedures 

for derivative products, including Trust 

Issued Receipts. The Exchange or 

FINRA, on behalf of the Exchange, will 

communicate as needed regarding 

trading in the Shares and the underlying 

Bitcoin Futures Contracts via ISG from 

other exchanges who are members or 

affiliates of the ISG or with which the 

Exchange has entered into a 

comprehensive surveillance sharing 

agreement.26 The Exchange may also 

obtain information regarding trading in 

the spot bitcoin market from exchanges 

with which the Exchange has entered 

into a comprehensive surveillance 

sharing agreement. In addition, the 

Exchange is able to access, as needed, 

trade information for certain fixed 

income instruments reported to FINRA’s 

Trade Reporting and Compliance Engine 

(‘‘TRACE’’). The Exchange prohibits the 

distribution of material non-public 

information by its employees. 

Information Circular 

Prior to the commencement of 

trading, the Exchange will inform its 

members in an Information Circular of 

the special characteristics and risks 

associated with trading the Shares. 

Specifically, the Information Circular 

will discuss the following: (1) The 

procedures for purchases and 

redemptions of Shares in Creation Units 

(and that Shares are not individually 

redeemable); (2) Exchange Rule 3.7, 

which imposes suitability obligations on 

Exchange members with respect to 

recommending transactions in the 

Shares to customers; (3) how 

information regarding the Intraday 

Indicative Value is disseminated; (4) the 

risks involved in trading the Shares 

during the Pre-Opening 27 and After 

Hours Trading Sessions 28 when an 

updated Intraday Indicative Value will 

not be calculated or publicly 

disseminated; (5) the requirement that 

members deliver a prospectus to 

investors purchasing newly issued 

Shares prior to or concurrently with the 

confirmation of a transaction; and (6) 

trading information. 

In addition, the Information Circular 

will advise members, prior to the 

commencement of trading, of the 

prospectus delivery requirements 

applicable to the Fund. Members 

purchasing Shares from the Funds for 

resale to investors will deliver a 

prospectus to such investors. The 

Information Circular will also discuss 

any exemptive, no-action, and 

interpretive relief granted by the 

Commission from any rules under the 

Act. 


sradovich on DSK3GMQ082PROD with NOTICES
2710 Federal Register / Vol. 83, No. 12 / Thursday, January 18, 2018 / Notices 

29 15 U.S.C. 78f. 

30 15 U.S.C. 78f(b)(5). 

In addition, the Information Circular 

will reference that each Fund is subject 

to various fees and expenses described 

in the Registration Statement. The 

Information Circular will also disclose 

the trading hours of the Shares of the 

Funds and the applicable NAV 

calculation time for the Shares. The 

Information Circular will disclose that 

information about the Shares of the 

Funds will be publicly available on that 

Fund’s website. In addition, the 

Information Circular will reference that 

the Trust is subject to various fees and 

expenses described in the Registration 

Statement. 

2. Statutory Basis 

The Exchange believes that the 

proposal is consistent with Section 6(b) 

of the Act 29 in general and Section 

6(b)(5) of the Act 30 in particular in that 

it is designed to prevent fraudulent and 

manipulative acts and practices, to 

promote just and equitable principles of 

trade, to foster cooperation and 

coordination with persons engaged in 

facilitating transactions in securities, 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 Exchange believes that the 

proposed rule change is designed to 

prevent fraudulent and manipulative 

acts and practices in that the Exchange 

believes that its surveillance procedures 

are adequate to properly monitor the 

trading of the Shares on the Exchange 

during all trading sessions and to deter 

and detect violations of Exchange rules 

and the applicable federal securities 

laws. Additionally, the Bitcoin Futures 

Contracts will be subject to the rules 

and surveillance programs of CFE, CME, 

and the CFTC. Trading of the Shares 

through the Exchange will be subject to 

the Exchange’s surveillance procedures 

for derivative products, including Trust 

Issued Receipts. The Exchange or 

FINRA, on behalf of the Exchange, will 

communicate as needed regarding 

trading in the Shares and the underlying 

Bitcoin Futures Contracts via ISG, from 

other exchanges who are members or 

affiliates of the ISG, or with which the 

Exchange has entered into a 

comprehensive surveillance sharing 

agreement. The Exchange may also 

obtain information regarding trading in 

the spot bitcoin market via the ISG, from 

other exchanges who are members or 

affiliates of the ISG, or from other 

exchanges with which the Exchange has 

entered into a comprehensive 

surveillance sharing agreement. In 

addition, the Exchange is able to access, 

as needed, trade information for certain 

fixed income instruments reported to 

TRACE. The Exchange prohibits the 

distribution of material non-public 

information by its employees. The 

Exchange believes that its surveillance 

procedures are adequate to properly 

monitor the trading of the Shares on the 

Exchange during all trading sessions 

and to deter and detect violations of 

Exchange rules and the applicable 

federal securities laws. 

The Exchange further believes that the 

proposal is designed to prevent 

fraudulent and manipulative acts and 

practices in that the Exchange expects 

that the market for Bitcoin Futures 

Contracts will be sufficiently liquid to 

support numerous ETPs shortly after 

launch. This belief is based on 

numerous conversations with market 

participants, issuers, and discussions 

with personnel of CFE. As such, the 

Exchange believes that the expected 

liquidity in the market for Bitcoin 

Futures Contracts combined with the 

Exchange surveillance procedures 

related to the Shares and the broader 

regulatory structure will prevent trading 

in the Shares from being susceptible to 

manipulation. 

Because of its innovative features as a 

cryptoasset, bitcoin has gained wide 

acceptance as a secure means of 

exchange in the commercial 

marketplace and has generated 

significant interest among investors. In 

less than a decade since its creation in 

2008, bitcoin has achieved significant 

market penetration, with payments giant 

PayPal and thousands of merchants and 

businesses accepting it as a form of 

commercial payment, as well as 

receiving official recognition from 

several governments, including Japan 

and Australia. Accordingly, investor 

interest in gaining exposure to bitcoin is 

increasing exponentially as well. As 

expected, the total volume of bitcoin 

transactions in the market continues to 

grow exponentially. 

Despite the growing investor interest 

in bitcoin, the primary means for 

investors to gain access to bitcoin 

exposure remains either through the 

Bitcoin Futures Contracts or direct 

investment through bitcoin exchanges 

or over-the-counter trading. For regular 

investors simply wishing to express an 

investment viewpoint in bitcoin, 

investment through the Bitcoin Futures 

Contracts is complex and requires active 

management and direct investment in 

bitcoin brings with it significant 

inconvenience, complexity, expense 

and risk. The Shares would therefore 

represent a significant innovation in the 

bitcoin market by providing an 

inexpensive and simple vehicle for 

investors to gain long or short exposure 

to bitcoin in a secure and easily 

accessible product that is familiar and 

transparent to investors. Such an 

innovation would help to perfect the 

mechanism of a free and open market 

and, in general, to protect investors and 

the public interest by improving 

investor access to bitcoin exposure 

through efficient and transparent 

exchange-traded derivative products. 

In addition to improved convenience, 

efficiency and transparency, the Funds 

will also help to prevent fraudulent and 

manipulative acts and practices by 

enhancing the security afforded to 

investors as compared to a direct 

investment in bitcoin. Despite the 

extensive security mechanisms built 

into the Bitcoin network, a remaining 

risk to owning bitcoin directly is the 

need for the holder to retain and protect 

the ‘‘private key’’ required to spend or 

sell bitcoin after purchase. If a holder’s 

private key is compromised or simply 

lost, their bitcoin can be rendered 

unavailable—i.e., effectively lost to the 

investor. This risk will be eliminated by 

the Long Fund because the exposure to 

bitcoin is gained through cash-settled 

Bitcoin Futures Contracts that do not 

present any of the security issues that 

exist with direct investment in bitcoin. 

The Funds expect that they will 

generally seek to remain fully exposed 

to Bitcoin Futures Contracts even during 

times of adverse market conditions. 

Under Normal Market Conditions, the 

Funds will generally hold only Bitcoin 

Futures Contracts and cash and Cash 

Equivalents (which are used to 

collateralize the Bitcoin Futures 

Contracts). 

The proposed rule change is designed 

to promote just and equitable principles 

of trade and to protect investors and the 

public interest in that the Exchange will 

obtain a representation from the issuer 

of the Shares that the NAV will be 

calculated daily and that the NAV and 

the Disclosed Portfolio will be made 

available to all market participants at 

the same time. In addition, a large 

amount of information is publicly 

available regarding the Funds and the 

Shares, thereby promoting market 

transparency. Moreover, the Intraday 

Indicative Value will be disseminated 

by one or more major market data 

vendors at least every 15 seconds during 

Regular Trading Hours. On each 

business day, before commencement of 

trading in Shares during Regular 

Trading Hours, each Fund will disclose 

on its website the Disclosed Portfolio 

that will form the basis for the Fund’s 

calculation of NAV at the end of the 


sradovich on DSK3GMQ082PROD with NOTICES
Federal Register / Vol. 83, No. 12 / Thursday, January 18, 2018 / Notices 2711 

business day. Pricing information will 

be available on each Fund’s website 

including: (1) The prior business day’s 

reported NAV, the Bid/Ask Price of the 

Fund, and a calculation of the premium 

and discount of the Bid/Ask Price 

against the NAV; and (2) data in chart 

format displaying the frequency 

distribution of discounts and premiums 

of the daily Bid/Ask Price against the 

NAV, within appropriate ranges, for 

each of the four previous calendar 

quarters. Additionally, information 

regarding market price and trading of 

the Shares will be continually available 

on a real-time basis throughout the day 

on brokers’ computer screens and other 

electronic services, and quotation and 

last sale information for the Shares will 

be available on the facilities of the CTA. 

The website for each Fund will include 

a form of the prospectus for the Fund 

and additional data relating to NAV and 

other applicable quantitative 

information. Trading in Shares of the 

Funds will be halted under the 

conditions specified in BZX Rule 11.18. 

Trading may also be halted because of 

market conditions or for reasons that, in 

the view of the Exchange, make trading 

in the Shares inadvisable. Finally, 

trading in the Shares will be subject to 

BZX Rule 14.11(f)(4)(B)(ii), which sets 

forth circumstances under which Shares 

of the Funds may be halted and 

delisting proceedings commenced. In 

addition, as noted above, investors will 

have ready access to information 

regarding each Fund’s holdings, the 

Intraday Indicative Value, the Disclosed 

Portfolio, and quotation and last sale 

information for the Shares. 

Intraday price quotations on Cash 

Equivalents of the type held by the 

Funds are available from major brokerdealer firms and from third-parties, 

which may provide prices free with a 

time delay, or ‘‘live’’ with a paid fee. For 

Bitcoin Futures Contracts and Listed 

Bitcoin Swaps, such intraday 

information is available directly from 

the applicable listing venue. Intraday 

price information is also available 

through subscription services, such as 

Bloomberg and Thomson Reuters, 

which can be accessed by authorized 

participants and other investors. Pricing 

information related to Cash Equivalents 

will be available through issuer websites 

and publicly available quotation 

services such as Bloomberg, Markit and 

Thomson Reuters. 

The proposed rule change is designed 

to perfect the mechanism of a free and 

open market and, in general, to protect 

investors and the public interest in that 

it will facilitate the listing and trading 

of additional types of actively-managed 

exchange-traded products that will 

enhance competition among market 

participants, to the benefit of investors 

and the marketplace. As noted above, 

the Exchange has in place surveillance 

procedures relating to trading in the 

Shares and may obtain information via 

ISG from other exchanges that are 

members of ISG or with which the 

Exchange has entered into a 

comprehensive surveillance sharing 

agreement as well as trade information 

for certain fixed income instruments as 

reported to FINRA’s TRACE. Not more 

than 10% of the net assets of a Fund in 

the aggregate invested in Bitcoin 

Futures Contracts shall consist of 

Bitcoin Futures Contracts whose 

principal market is not a member of the 

ISG or with which the Exchange has in 

place a comprehensive surveillance 

sharing agreement. In addition, as noted 

above, investors will have ready access 

to information regarding each Fund’s 

holdings, the Intraday Indicative Value, 

the Disclosed Portfolio, and quotation 

and last sale information for the Shares. 

For the above reasons, the Exchange 

believes that the proposed rule change 

is consistent with the requirements of 

Section 6(b)(5) of the Act. 

(B) Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purpose of the Act. The Exchange 

notes that the proposed rule change, 

rather will facilitate the listing and 

trading of additional actively-managed 

exchange-traded products that will 

enhance competition among both 

market participants and listing venues, 

to the benefit of investors and the 

marketplace. 

(C) Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants or Others 

The Exchange has neither solicited 

nor received written comments on the 

proposed rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or within such longer period 

up to 90 days (i) as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding or (ii) as to which 

the self-regulatory organization 

consents, the Commission will: 

A. By order approve or disapprove the 

proposed rule change, or 

B. institute proceedings to determine 

whether the proposed rule change 

should be 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– 

CboeBZX–2018–001 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–CboeBZX–2018–001. 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 website (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 website 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 will also be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change. 

Persons submitting comments are 

cautioned that we do not redact or edit 

personal identifying information from 

comment submissions. You should 

submit only information that you wish 

to make available publicly. All 

submissions should refer to File 

Number SR–CboeBZX–2018–001 and 

should be submitted on or before 

February 8, 2018. 


sradovich on DSK3GMQ082PROD with NOTICES
2712 Federal Register / Vol. 83, No. 12 / Thursday, January 18, 2018 / Notices 

31 17 CFR 200.30–3(a)(12). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.31

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–00720 Filed 1–17–18; 8:45 am] 

BILLING CODE 8011–01–P 

SMALL BUSINESS ADMINISTRATION 

[Disaster Declaration #15302 and #15303; 

FLORIDA Disaster Number FL–00130] 

Presidential Declaration Amendment of 

a Major Disaster for the State of Florida 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Amendment 8. 

SUMMARY: This is an amendment of the 

Presidential declaration of a major 

disaster for the State of Florida (FEMA– 

4337–DR), dated 09/10/2017. 

Incident: Hurricane Irma. 

Incident Period: 09/04/2017 through 

10/18/2017. 

DATES: Issued on 01/10/2018. 

Physical Loan Application Deadline 

Date: 11/24/2017. 

Economic Injury (EIDL) Loan 

Application Deadline Date: 06/11/2018. 

ADDRESSES: Submit completed loan 

applications to: U.S. Small Business 

Administration, Processing and 

Disbursement Center, 14925 Kingsport 

Road, Fort Worth, TX 76155. 

FOR FURTHER INFORMATION CONTACT: A. 

Escobar, Office of Disaster Assistance, 

U.S. Small Business Administration, 

409 3rd Street SW, Suite 6050, 

Washington, DC 20416, (202) 205–6734. 

SUPPLEMENTARY INFORMATION: The notice 

of the President’s major disaster 

declaration for the State of Florida, 

dated 09/10/2017, is hereby amended to 

include the following areas as adversely 

affected by the disaster: 

Primary Counties (Physical Damage and 

Economic Injury Loans): Hamilton 

Contiguous Counties (Economic Injury 

Loans Only): 

Georgia: Lowndes 

All other information in the original 

declaration remains unchanged. 

(Catalog of Federal Domestic Assistance 

Number 59008) 

James E. Rivera, 

Associate Administrator for Disaster 

Assistance. 

[FR Doc. 2018–00768 Filed 1–17–18; 8:45 am] 

BILLING CODE 8025–01–P 

SMALL BUSINESS ADMINISTRATION 

[Disaster Declaration #15425 and #15426; 

CALIFORNIA Disaster Number CA–00283] 

Presidential Declaration Amendment of 

a Major Disaster for Public Assistance 

Only for the State of California 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Amendment 1. 

SUMMARY: This is an amendment of the 

Presidential declaration of a major 

disaster for Public Assistance Only for 

the State of California (FEMA–4353– 

DR), dated 01/02/2018. 

Incident: Flooding, Mudflows, and 

Debris Flows directly related to the 

Wildfires. 

Incident Period: 12/04/2017 and 

continuing. 

DATES: Issued on 01/10/2018. 

Physical Loan Application Deadline 

Date: 03/05/2018. 

Economic Injury (EIDL) Loan 

Application Deadline Date: 10/02/2018. 

ADDRESSES: Submit completed loan 

applications to: U.S. Small Business 

Administration, Processing and 

Disbursement Center, 14925 Kingsport 

Road, Fort Worth, TX 76155. 

FOR FURTHER INFORMATION CONTACT: A. 

Escobar, Office of Disaster Assistance, 

U.S. Small Business Administration, 

409 3rd Street SW, Suite 6050, 

Washington, DC 20416, (202) 205–6734. 

SUPPLEMENTARY INFORMATION: The notice 

of the President’s major disaster 

declaration for Private Non-Profit 

organizations in the State of California, 

dated 01/02/2018, is hereby amended to 

expand the incident for this disaster to 

include flooding, mudflow, and debris 

flows directly related to the wildfires. 

All other information in the original 

declaration remains unchanged. 

(Catalog of Federal Domestic Assistance 

Number 59008) 

James E. Rivera, 

Associate Administrator for Disaster 

Assistance. 

[FR Doc. 2018–00767 Filed 1–17–18; 8:45 am] 

BILLING CODE 8025–01–P 

DEPARTMENT OF STATE 

[Public Notice 10272] 

Notice of Public Meeting 

The Department of State will conduct 

an open meeting at 9:30 a.m. on 

Tuesday, February 13, 2018, at the 

headquarters of the Radio Technical 

Commission for Maritime Services 

(RTCM) in Suite 705, 1621 N. Kent 

Street, Arlington, Virginia 22209. The 

primary purpose of the meeting is to 

prepare for the 5th session of the 

International Maritime Organization’s 

(IMO) Sub-Committee on Navigation, 

Communication, and Search and Rescue 

to be held at the IMO Headquarters, 

United Kingdom, from February 19–23, 

2018. 

The agenda items to be considered 

include: 

—Decisions of other IMO bodies 

—Routing measures and mandatory ship 

reporting systems 

—Updates to the LRIT system 

—Application of the ‘‘Indian Regional 

Navigation Satellite System (IRNSS)’’ 

in the maritime field and 

development of performance 

standards for shipborne IRNSS 

receiver equipment 

—Guidelines for the harmonized 

display of navigation information 

received via communications 

equipment 

—Guidelines on standardized modes of 

operation, S-mode 

—Develop guidance on definition and 

harmonization of the format and 

structure of Maritime Service 

Portfolios (MSPs) 

—Updating of the GMDSS master plan 

and guidelines on MSI (maritime 

safety information) provisions 

—Consequential work related to the 

new Polar Code 

—Revision of SOLAS chapters III and IV 

for Modernization of the Global 

Maritime Distress and Safety System 

(GMDSS), including related and 

consequential amendments to other 

existing instruments 

—Response to matters related to the 

Radio communication ITU–R Study 

Group and ITU World Radio 

Communication Conference 

—Measures to protect the safety of 

persons rescued at sea 

—Developments in GMDSS satellite 

services 

—Revised Performance Standards for 

EPIRBs operating on 406 MHz 

(resolution A.810(19)) to include 

Cospas-Sarsat MEOSAR and second 

generation beacons 

—Further development of the provision 

of global maritime SAR services 

—Guidelines on harmonized 

aeronautical and maritime search and 

rescue procedures, including SAR 

training matters 

—Amendments to the IAMSAR Manual 

—Unified interpretation of provisions of 

IMO safety, security, and 

environment-related conventions 

—Biennial status report and provisional 

agenda for NCSR 6 

—Election of Chair and Vice-Chair for 

2019 


sradovich on DSK3GMQ082PROD with NOTICES