Federal Register / Vol. 87, No. 91 / Wednesday, May 11, 2022 / Notices 28855 

97For a list of the current members and affiliate 

members of ISG, see www.isgportal.org. According 

to the Exchange, not all components of the 

Disclosed Portfolio for the Trust may trade on 

markets that are members of the ISG or with which 

the Exchange has in place a CSSA. See Notice, 86 

FR at 50581 n.68. 

98See Notice, 86 FR at 50581; Amendment No. 2, 

supra note 9, at 5. For additional discussion of the 

CME bitcoin futures market and how surveillancesharing between the Exchange and the CME via 

common membership in the ISG would assist in 

detecting and deterring manipulative conduct 

related to the Shares, see Section III.A above. 

99See Notice, 86 FR at 50581. 

100See id.; Amendment No. 2. 101 17 CFR 240.10A–3. 

102 15 U.S.C. 78f(b)(2). 

103 15 U.S.C. 78f(b)(5); 15 U.S.C. 78k– 

1(a)(1)(C)(iii). 

104 15 U.S.C. 78f(b)(2). 

105 17 CFR 200.30–3(a)(12). 

the Shares and the underlying CME 

bitcoin futures from other exchanges 

who are members or affiliates of the ISG 

or with which the Exchange has in place 

a comprehensive surveillance-sharing 

agreement (‘‘CSSA’’).97 The Exchange 

may also obtain information regarding 

trading in the spot bitcoin market from 

the exchanges with which the CME or 

the Exchange has entered into a CSSA.98

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.99 In support of this 

proposal, the Exchange represented 

that: 100

(1) The Shares of the Trust will 

conform to the initial and continued 

listing criteria set forth in Nasdaq Rule 

5711(g). 

(2) The Exchange has appropriate 

rules to facilitate transactions in the 

Shares during all trading sessions. 

(3) 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. 

Trading of Shares on the Exchange will 

be subject to the Exchange’s 

surveillance procedures for derivative 

products. 

(4) 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 in the Shares. 

Specifically, the Information Circular 

will discuss the following: (a) The 

procedures for purchases and 

redemptions of Shares in Creation Units 

(and that Shares are not individually 

redeemable); (b) Section 10 of Nasdaq 

General Rule 9, which imposes 

suitability obligations on Nasdaq 

members with respect to recommending 

transactions in the Shares to customers; 

(c) how information regarding the IIV 

and the portfolio holdings is 

disseminated; (d) the risks involved in 

trading the Shares during the PreMarket and Post-Market Sessions when 

an updated IIV will not be calculated or 

publicly disseminated; (e) the 

requirement that members deliver a 

prospectus to investors purchasing 

newly issued Shares prior to or 

concurrently with the confirmation of a 

transaction; and (f) trading information. 

(5) For initial and continued listing, 

the Trust will be in compliance with 

Rule 10A–3 under the Exchange Act.101

(6) Under no circumstances will the 

Trust hold and/or invest in any assets 

other than CME bitcoin futures 

contracts, cash, and Money Market 

Instruments. The Trust will not invest 

in or hold spot bitcoin. 

(7) The Trust’s investments will be 

consistent with the Trust’s investment 

objective and will not be used to 

enhance leverage. That is, the Trust’s 

investments will not be used to seek 

performance that is the multiple or 

inverse multiple (e.g., 2Xs, 3Xs, ¥2Xs, 

and ¥3Xs) of the Trust’s benchmark. 

(8) A minimum of 100,000 Shares of 

the Trust will be outstanding at the 

commencement of trading on the 

Exchange. 

(9) The Exchange represents that all 

statements and representations made in 

the filing regarding (a) the description of 

the reference assets or trust holdings; (b) 

limitations on reference assets, or trust 

holdings; (c) dissemination and 

availability of the reference asset or 

intraday indicative values; or (d) the 

applicablilty of Nasdaq listing rules 

specified in the filing shall constitute 

continued listing standards. The 

Exchange will require the Trust to 

represent to the Exchange that it will 

advise the Exchange of any failure by 

the Trust to comply with the continued 

listing requirements, and, pursuant to 

its obligations under Section 19(g)(1) of 

the Exchange Act, the Exchange will 

surveil for compliance with the 

continued listing requirements. If the 

Trust is not in compliance with the 

applicable listing requirements, the 

Exchange will commence delisting 

procedures under the Nasdaq 5800 

Series. 

IV. Conclusion 

This approval order is based on all of 

the Exchange’s representations and 

description of the Trust, including those 

set forth above and in Amendment No. 

2. The Commission notes that the 

Shares must comply with the 

requirements of Nasdaq Rule 5711(g) to 

be listed and traded on the Exchange on 

an initial and continuing basis. 

For the reasons set forth above, the 

Commission finds, pursuant to Section 

19(b)(2) of the Exchange Act,102 that the 

proposed rule change, as modified by 

Amendment Nos. 1 and 2, is consistent 

with the requirements of the Exchange 

Act and the rules and regulations 

thereunder applicable to a national 

securities exchange, and in particular, 

with Section 6(b)(5) and Section 

11A(a)(1)(C)(iii) of the Exchange Act.103

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Exchange Act,104

that proposed rule change SR– 

NASDAQ–2021–066, as modified by 

Amendment Nos. 1 and 2, be, and 

hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.105

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–10065 Filed 5–10–22; 8:45 am] 

BILLING CODE 8011–01–P 

DEPARTMENT OF STATE 

[Public Notice 11727] 

Determination Pursuant to Section 451 

of the Foreign Assistance Act for the 

Use of Funds To Support South Sudan 

Peace Agreement Monitoring 

Mechanisms 

Pursuant to section 451 of the Foreign 

Assistance Act of 1961 (the ‘‘Act’’) (22 

U.S.C. 2261), section 1–100(a)(1) of E.O. 

12163 and Delegation of Authority 513, 

I hereby authorize, notwithstanding any 

other provision of law, the use of up to 

$3,000,000 made available to carry out 

provisions of the Act (other than the 

provisions of chapter 1 of part I of the 

Act) to provide assistance authorized by 

part I of the Act to support countries 

that participate in the Reconstituted 

Joint Monitoring and Evaluation 

Commission and the Ceasefire and 

Transitional Security Arrangements 

Monitoring and Verification Mechanism 

in South Sudan. 

This Determination and the 

accompanying Memorandum of 

Justification shall be promptly reported 

to the Congress. This Determination 

shall be published in the Federal 

Register. 

Dated: February 24, 2022. 

Brian P. McKeon, 

Deputy Secretary of State for Management 

and Resources. 

[FR Doc. 2022–10150 Filed 5–10–22; 8:45 am] 

BILLING CODE 4710–25–P 


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