6314 Federal Register / Vol. 81, No. 24 / Friday, February 5, 2016 / Notices 

29See id. The Exchange notes that the same 

categories of NYSE MKT members that were 

represented on the Market Performance Committee 

and the Regulatory Advisory Committee would be 

represented on the proposed CFR. See id. 

30See id. 

31See note 11, supra. 

32See Notice, supra note 4, at 79118. 

33 15 U.S.C. 78f(b)(1). 

34 15 U.S.C. 78f(b)(3). 

35The Exchange notes that market makers on the 

Exchange’s equity market are called DMMs and on 

NYSE Amex Options are called specialists. See 

Notice, supra note 4, at 79118 n.9. 

36See id. 

37 15 U.S.C. 78f(b)(3). 

38See Notice, supra note 4, at 79119. According 

to the Exchange, any such appeals panel would 

have no other role in the appellate process. See id. 

39See id. 

40 15 U.S.C. 78f(b)(3) and 15 U.S.C. 78f(b)(7). 

41 15 U.S.C. 78f(b)(5). 

42 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

rules other than trading rules.29

Therefore, the Exchange proposes to 

expand the proposed CFR’s 

responsibilities to include acting in an 

advisory capacity to the Board with 

respect to disciplinary matters, the 

listing and delisting of securities, 

regulatory programs, rulemaking and 

regulatory rules, including trading 

rules.30 The Commission notes that the 

proposed CFR incorporates the salient 

features of the current CFR, including 

the requirement that the CFR be 

comprised of both Exchange directors 

who satisfy the Exchange’s 

independence requirements,31 as well 

as persons who are not directors, and 

that a majority of the members of the 

CFR voting on a matter subject to a vote 

of the CFR must be directors of the 

Exchange.32 As such, the Commission 

finds that the Exchange’s proposed 

revisions to its appellate procedure for 

disciplinary matters and for 

determinations to limit or prohibit the 

continued listing of an issuer’s 

securities on the Exchange ensures 

sufficient independence of the appellate 

function of the Exchange, and therefore 

helps to ensure that the exchange is 

organized and has the capacity to carry 

out the purposes of the Act, as required 

by Section 6(b)(1) of the Act.33

The Commission also finds that the 

composition of the proposed CFR 

ensures the fair representation of 

members in the administration of the 

Exchange’s affairs.34 Proposed Section 

2.03(h)(iii) of the Exchange’s Operating 

Agreement provides that, among the 

persons on the proposed CFR, who are 

not directors, at least one individual 

from each of the following categories 

must be on the CFR: (i) Individuals who 

are associated with a Member 

Organization that engages in a business 

involving substantial direct contact with 

securities customers, (ii) individuals 

who are associated with a Member 

Organization and registered as a DMM 

or specialist,35 and (iii) individuals who 

are associated with a Member 

Organization and have as a substantial 

part of their business the execution of 

transactions on the trading floor of the 

Exchange for other than their own 

account or the account of his or her 

Member Organization, but are not 

registered as a DMM or specialist.36

Because NYSE MKT members will serve 

on the proposed CFR, which will be 

charged with acting in an advisory 

capacity to the Board with respect to 

disciplinary matters, the listing and 

delisting of securities, regulatory 

programs, rulemaking and regulatory 

rules, including trading rules, the 

Commission finds that the proposed 

rule change is consistent with Section 

6(b)(3) of the Act.37

The Exchange also proposes to amend 

Exchange Rule 476(f) to permit the CFR 

to appoint an appeals panel, consisting 

of at least three and no more than five 

individuals, which would conduct a 

review of any disciplinary 

determination on behalf of the CFR, and 

make a recommendation to the CFR 

regarding the disposition of such 

appeal.38 According to the Exchange, an 

appeals panel appointed by the CFR for 

equity matters would be composed of at 

least one director and one member or 

individual associated with an equities 

member organization, and an appeals 

panel appointed for options matters 

would be composed of at least one 

director and one member or individual 

associated with an options member 

organization.39 The Commission finds 

that the Exchange’s proposal with 

respect to the proposed composition 

and the role of an appeals panel is 

consistent with Sections 6(b)(3) and 

6(b)(7) of the Act.40

Finally, the Commission finds that it 

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

Act for the Exchange to make various 

technical and conforming revisions to 

its Rules.41

IV. Conclusion 

It is therefore ordered, pursuant to 

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

proposed rule change (SR–NYSEMKT– 

2015–106) is approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.42

Robert W. Errett, 

Deputy Secretary. 

[FR Doc. 2016–02198 Filed 2–4–16; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–77007; File No. SR–Phlx– 

2016–12] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX LLC; Notice of 

Filing of Proposed Rule Change To 

Adopt a Limit Order Protection and a 

Market Order Protection 

February 1, 2016. 

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 

21, 2016, NASDAQ OMX PHLX LLC 

(‘‘Phlx’’ or the ‘‘Exchange’’) filed with 

the Securities and Exchange 

Commission (the ‘‘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 proposes to amend 

NASDAQ OMX PSX Rule 3307, entitled 

‘‘Processing of Orders’’ to adopt a Limit 

Order Protection or ‘‘LOP’’ and a Market 

Order Protection for members accessing 

PSX. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://

nasdaqomxphlx.cchwallstreet.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 aspects of such 

statements. 

mstockstill on DSK4VPTVN1PROD with NOTICES

Federal Register / Vol. 81, No. 24 / Friday, February 5, 2016 / Notices 6315 

3See Securities Exchange Act Release No. 67091 

(May 31, 2012), 77 FR 33498 (June 6, 2012) (File 

No. 4–631) (Order Approving, on a Pilot Basis, the 

National Market System Plan To Address 

Extraordinary Market Volatility). See also Rule 608 

of Regulation NMS under the Act. 4 If the National Best Offer (‘‘NBO’’) equals the 

lower price band without crossing the NBB, or 

National Best Bid (‘‘NBB’’) equals the upper price 

band without crossing the NBO, then the stock will 

enter a limit state quotation period of 15 seconds 

during which no new reference prices or price 

bands will be calculated. A stock will exit the limit 

state when the entire size of all limit state 

quotations are executed or cancelled. If the limit 

state exists and trading continues to occur at the 

price band, or no trading occurs within the price 

band, for more than 15 seconds, then a five minute 

trading pause will be enacted. 

5While LULD bands are in place from 9:30 to 

4:00 p.m. E.T. each trading day, these new 

protections will be in place for each trading session. 

6An Intermarket Sweep or ISO Order, which is 

an Order that is immediately executable within PSX 

against Orders against which they are marketable, 

is subject to LOP. See PSX Rule 3401(g). 

7 If an Order is modified, LOP will review the 

order anew and, if LOP is triggered, such 

modification will not take effect and the original 

order will not be accepted. 

8LOP has the ability to suspend by symbol or 

system wide. The Exchange would notify market 

participants of any suspension that may be in place 

via an alert. 

9The PSX Rulebook provides specific rules for 

certain auction mechanisms, such as the opening 

and closing. The mechanisms contain their own 

protections with respect to the entry of Orders 

within those mechanisms. The addition of the 

proposed protections does not add value in the 

Exchange’s analysis of those structures. 

10A ‘‘Market Maker Peg Order’’ is an Order Type 

designed to allow a Market Maker to maintain a 

continuous two-sided quotation at a displayed price 

that is compliant with the quotation requirements 

for Market Makers set forth in Rule 3213(a)(2). The 

displayed price of the Market Maker Peg Order is 

set with reference to a ‘‘Reference Price’’ in order 

to keep the displayed price of the Market Maker Peg 

Order within a bounded price range. A Market 

Maker Peg Order may be entered through RASH or 

FIX. A Market Maker Peg Order must be entered 

with a limit price beyond which the Order may not 

be priced. The Reference Price for a Market Maker 

Peg Order to buy (sell) is the then-current National 

Best Bid (National Best Offer) or if no such National 

Best Bid or National Best Offer, the most recent 

reported last-sale eligible trade from the responsible 

single plan processor for that day, or if none, the 

previous closing price of the security as adjusted to 

reflect any corporate actions (e.g., dividends or 

stock splits) in the security. See PSX Rule 3301A. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to adopt two 

new mechanisms to protect against 

erroneous orders which are entered into 

PSX. Specifically, these features address 

risks to market participants of human 

error in entering Orders at unintended 

prices. LOP and the Market Order 

Protection would prevent certain Orders 

from executing or being placed on the 

Order Book at prices outside pre-set 

standard limits. The System would not 

accept such Orders, rather than 

executing them automatically. 

Background 

Today, the National Market System 

Plan to Address Extraordinary Market 

Volatility (the ‘‘Plan’’) 3 provides a limit 

up-limit down (‘‘LULD’’) mechanism 

designed to prevent trades in NMS 

securities from occurring outside of 

specified price bands. The bands are set 

at a percentage level above and below 

the average transaction price of the 

security over the immediately preceding 

five-minute period, and are calculated 

on a continuous basis during regular 

trading hours.4 Rule 3100, entitled 

‘‘Limit Up-Limit Down Plan and 

Trading Halts on PSX,’’ describes this 

process for PSX. 

The Exchange proposes to adopt two 

new features, LOP for Limit Orders and 

Market Order Protection for Market 

Orders, which would cancel these 

Orders back to the member when the 

order exceeds certain defined logic. 

These two new features would be in 

addition to the LULD protections, which 

exist today.5 Each mechanism is 

explained further below. 

LOP 

The Exchange proposes to adopt a 

new LOP feature on PSX to prevent 

certain Limit Orders at prices outside of 

pre-set standard limits (‘‘LOP Limit 

Table’’) from being accepted by the 

System. LOP shall apply to all Quotes 

and Orders,6 including any modified 

Orders.7 LOP would not apply to Market 

Orders. LOP would be operational each 

trading day, except during opening and 

closing crosses and trading halts.8 Since 

PSX Rules provide controls for the 

opening and closing processes within 

the Rulebook, the proposed protections 

are rendered ineffective for those 

processes.9 Members will be subject to 

certain parameters when submitting 

Orders into the Order Book. 

The Exchange proposes to not accept 

incoming Limit Orders that exceed the 

LOP Reference Threshold. The LOP 

Limit Table contains upper limits and 

lower limits, for a particular security, 

across all trading sessions. For example, 

today, if the NBO is at $50 and a Limit 

Buy Order was entered into the System 

at $500, the Limit Buy Order would 

execute at $50 and then would continue 

to be executed at other applicable price 

levels within the Order Book until the 

Limit Buy Order was canceled or halted. 

The Exchange proposes LOP to avoid a 

series of improperly priced aggressive 

orders transacting in the Order Book. 

With respect to Market Maker Peg 

Orders,10 the applicable limits shall be 

two times greater than the limits stated 

in the LOP Limit Table. A Market Maker 

Peg Order is a passive Order type which 

will not otherwise remove liquidity 

from the Order Book. This Order type 

was designed to assist Market Makers 

with meeting their quoting obligations 

which may require quoting at levels that 

are not standardized with LULD 

guidelines. Market Makers have a 

diverse business model as compared 

with other market participants. 

Widening the applicable limits for these 

market participants serves to promote 

market making. The Exchange believes 

that because Market Makers have other 

risk protections in place to prevent them 

from quoting outside of their financial 

means, the risk level for erroneous 

trades is not the same as with other 

market participants. Market Makers 

have more sophisticated infrastructures 

than other market participants and are 

able to manage their risk, particularly 

with quoting, utilizing other tools which 

may not be available to other market 

participants. 

The Exchange will send an Equity 

Trader Alert in advance of 

implementation with the initial LOP 

Limit Table and, thereafter, to modify 

the LOP Limit Table. The initial LOP 

Limit Table utilizes the same limits as 

LULD to compare against the LOP 

Reference Threshold. The Exchange 

believes that utilizing the same tiers and 

bands will seek to provide additional 

market protection to PSX members that 

submit erroneous orders, prior to 

reaching LULD limits. The initial LOP 

table is below. 

Securities Time period Price band percentage 

Tier 1 and Tier 2 NMS Securities, Reference 

Price >$3.00.

Market Hours, excluding Open/Close (9:45 

a.m. to 3:35 p.m.).

5% (Tier 1) & 10% (Tier 2). 

Tier 1 and Tier 2 NMS Securities, Reference 

Price equal to $0.75 to and including $3.00.

Market Hours, excluding Open/Close (9:45 

a.m. to 3:35 p.m.).

20%. 

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6316 Federal Register / Vol. 81, No. 24 / Friday, February 5, 2016 / Notices 

11The LULD Plan provides that between 9:30 a.m. 

and 9:45 a.m. ET, and 3:35 p.m. and 4:00 p.m. ET, 

or in the case of an early scheduled close, during 

the last 25 minutes of trading before the early 

scheduled close, the Price Bands shall be calculated 

by applying double the Percentage Parameters set 

forth in Appendix A. See Rule 608 of Regulation 

NMS under the Act. 

12The LULD Plan defines a Straddle State as 

when the National Best Bid (Offer) is below (above) 

the Lower (Upper) Price Band and the NMS Stock 

is not in a Limit State. For example, assume the 

Lower Price Band for an NMS Stock is $9.50 and 

the Upper Price Band is $10.50, such NMS stock 

would be in a Straddle State if the National Best 

Bid were below $9.50, and therefore nonexecutable, and the National Best Offer were above 

$9.50 (including a National Best Offer that could be 

above $10.50). If an NMS Stock is in a Straddle 

State and trading in that stock deviates from normal 

trading characteristics, the Primary Listing 

Exchange may declare a Trading Pause for that 

NMS Stock. See Section VII(A)(2) of the Plan. 

13PSX maintains several communications 

protocols for members to use in entering Orders and 

sending other messages to PSX, such as: OUCH, 

RASH, FLITE and FIX. 

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

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

Securities Time period Price band percentage 

Tier 1 & 2 NMS Securities, Reference Price 

Less than $0.75.

Market Hours, excluding Open/Close (9:45 

a.m. to 3:35 p.m.).

The lesser of $0.15 or 75%. 

Tier 1 and Tier 2 NMS Securities, Reference 

Price >$3.00.

During Market Open/Close: 8:00 a.m. to 9:45 

a.m., 3:35 p.m. to 5:00 p.m.

10% & 20%. Note: Band % is doubled during 

these times. 

Tier 1 and Tier 2 NMS Securities, Reference 

Price equal to $0.75 to and including $3.00.

During Market Open/Close: 8:00 a.m. to 9:45 

a.m., 3:35 p.m. to 5:00 p.m. Same as above.

40%. Note: Band % is doubled during these 

times. 

Tier 1 and Tier 2 NMS Securities, Reference 

Price less than $0.75.

During Market Open/Close: 8:00 a.m. to 9:45 

a.m., 3:35 p.m. to 5:00 p.m.

Lesser of $0.30 or 150% (upper band only). 

Note: Band % is doubled during these 

times. 

LOP will cause Limit Orders to not be 

accepted if the price of the Limit Order 

is greater than the LOP Reference 

Threshold for a buy Limit Order. Limit 

Orders will also not be accepted if the 

price of the Limit Order is less than the 

LOP Reference Threshold for a sell 

Limit Order. The Exchange believes that 

doubling the band percentage for preopen and post-close sessions is 

reasonable due to the volatility which 

may occur in the market during those 

trading sessions. The LULD Plan also 

doubles the percentages between 9:30 

a.m. and 9:45 a.m. ET, and 3:35 p.m. 

and 4:00 p.m. ET. The Exchange’s 

proposal aligns this protection with the 

LULD Plan.11

The LOP Reference Price shall be the 

current consolidated national Best Bid 

or Best Offer (consolidated NBBO), the 

Bid for sell orders and the Offer for buy 

orders. If there is no consolidated NBBO 

for a security, or if there is a one-sided 

market, the last regular way 

consolidated sale, adjusted for corporate 

actions, if any, will be the LOP 

Reference Price. If there is no last 

regular way consolidated sale on that 

trade date, then the prior day’s adjusted 

close will be the LOP Reference Price. 

The LOP Reference Threshold for buy 

orders will be the LOP Reference Price 

(offer) plus the applicable percentage 

specified in the LOP Limit Table. The 

LOP Reference Threshold for sell orders 

will be the LOP Reference Price (bid) 

minus the applicable percentage 

specified in the LOP Limit Table. 

Market Order Protection 

With respect to Market Orders, these 

Orders will not be accepted if the 

security is in an LULD Straddle State.12

If the offer is in a Straddle State then all 

buy Market Orders will not be accepted. 

If the bid is in a Straddle State than all 

sell market orders will not be accepted. 

The Exchange believes that this Market 

Order Protection feature will prevent 

Participants from executing Market 

Orders that stray widely from the LULD 

defined reference price. 

The Exchange also notes that both 

LOP and Market Order Protection will 

be applicable to all protocols.13 Both the 

LOP and Market Order Protection 

features will be mandatory for all PSX 

members. The Exchange proposes to 

implement this rule within ninety (90) 

days of the implementation date. The 

Exchange will issue an Equities Trader 

Alert in advance to inform market 

participants of such implementation 

date. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act 14 in general, and furthers the 

objectives of Section 6(b)(5) of the Act 15

in particular, in that it is designed to 

promote just and equitable principles of 

trade, to remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system, and, in general to protect 

investors and the public interest, by 

mitigating risks to market participants of 

human error in entering Orders at 

clearly unintended prices. Also, the 

Market Order Protection feature would 

protect Market Orders from being 

executed in very wide markets when 

those prices are compared to the 

reference price. The Exchange believes 

that the proposals are appropriate and 

reasonable, because they offer 

protections to both Limit and Market 

Orders which should encourage price 

continuity and, in turn, protect 

investors and the public interest by 

reducing executions occurring at 

dislocated prices. 

The Exchange believes that the 

proposed LOP and Market Order 

Protection features would assist with 

the maintenance of fair and orderly 

markets by mitigating the risks 

associated with errors resulting in 

executions at prices that are away from 

the Best Bid or Offer and potentially 

erroneous. Further the proposal protects 

investors from potentially receiving 

executions away from the prevailing 

prices at any given time. 

The Exchange believes that the LOP 

Limit Table is appropriate because it is 

based on the current LULD bands. The 

Exchange believes that the proposed 

specified percentages are appropriate 

because LOP is designed to reduce the 

risk of, and to potentially prevent, the 

automatic execution of Orders at prices 

that may be considered clearly 

erroneous. The System will only 

execute Limit Orders priced within the 

LOP Limit Table or within the upper 

(lower) band of LULD, if the latter is 

more conservative. 

The Exchange believes that the 

proposal to not accept System Orders 

that are Market Orders in a Straddle 

State will prevent Market Orders from 

being executed by market participants at 

erroneous prices which the Exchange 

believes would stray widely from the 

LULD defined reference price. 

The Exchange believes LOP and 

Market Order Protection will remove 

impediments to and perfect the 

mechanisms of a free and open market 

because these features will operate in 

tandem with LULD. 

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 not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

Exchange believes the LOP and Market 

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Federal Register / Vol. 81, No. 24 / Friday, February 5, 2016 / Notices 6317 

16 17 CFR 200.30–3(a)(12). 

Order Protection features will provide 

market participants with additional 

protection from anomalous executions, 

in addition to LULD protections. Thus, 

the Exchange does not believe the 

proposal creates any significant impact 

on competition. The Exchange believes 

that offering these protections to the 

PSX will not impose any undue burden 

on intra-market competition, rather, it 

would permit equities and options 

members to be protected in a similar 

manner from erroneous executions. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were either 

solicited or received. 

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– 

Phlx–2016–12 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–Phlx–2016–12. 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–Phlx– 

2016–12 and should be submitted on or 

before February 26, 2016. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Robert W. Errett, 

Deputy Secretary. 

[FR Doc. 2016–02197 Filed 2–4–16; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Investment Company Act Release No. 

31976; File No. 812–14530] 

PNC Funds, et al.; Notice of 

Application 

February 1, 2016. 

AGENCY: Securities and Exchange 

Commission (‘‘Commission’’). 

ACTION: Notice of an application for an 

order pursuant to: (a) Section 6(c) of the 

Investment Company Act of 1940 

(‘‘Act’’) granting an exemption from 

sections 18(f) and 21(b) of the Act; (b) 

section 12(d)(1)(J) of the Act granting an 

exemption from section 12(d)(1) of the 

Act; (c) sections 6(c) and 17(b) of the 

Act granting an exemption from sections 

17(a)(1), 17(a)(2) and 17(a)(3) of the Act; 

and (d) section 17(d) of the Act and rule 

17d–1 under the Act to permit certain 

joint arrangements and transactions. 

SUMMARY OF THE APPLICATION: 

Applicants request an order that would 

permit certain registered open-end 

management investment companies to 

participate in a joint lending and 

borrowing facility. 

APPLICANTS: PNC Funds and PNC 

Advantage Funds (each a ‘‘Trust’’ and 

collectively the ‘‘Trusts’’); the series 

thereof, and any registered open-end 

management investment company or 

series thereof in the future (each a 

‘‘Fund’’ and, collectively, the ‘‘Funds’’); 

and PNC Capital Advisors LLC (the 

‘‘Adviser’’). 

FILING DATES: The application was filed 

on August 10, 2015, and amended on 

January 11, 2016. 

HEARING OR NOTIFICATION OF HEARING: An 

order granting the requested relief will 

be issued unless the Commission orders 

a hearing. Interested persons may 

request a hearing by writing to the 

Commission’s Secretary and serving 

applicants with a copy of the request, 

personally or by mail. Hearing requests 

should be received by the Commission 

by 5:30 p.m. on February 26, 2016 and 

should be accompanied by proof of 

service on the applicants, in the form of 

an affidavit, or, for lawyers, a certificate 

of service. Pursuant to Rule 0–5 under 

the Act, hearing requests should state 

the nature of the writer’s interest, any 

facts bearing upon the desirability of a 

hearing on the matter, the reason for the 

request, and the issues contested. 

Persons who wish to be notified of a 

hearing may request notification by 

writing to the Commission’s Secretary. 

ADDRESSES: Brent J. Fields, Secretary, 

U.S. Securities and Exchange 

Commission, 100 F Street NE., 

Washington, DC 20549–1090; 

Applicants: c/o Todd P. Zerega, Esq., 

Perkins Coie LLP, 700 13th Street NW., 

Washington, DC 20005. 

FOR FURTHER INFORMATION CONTACT: 

James D. McGinnis, Attorney-Advisor, 

at (202) 551–3025 or Sara Crovitz, 

Assistant Chief Counsel, at (202) 551– 

6720 (Division of Investment 

Management, Chief Counsel’s Office). 

SUPPLEMENTARY INFORMATION: The 

following is a summary of the 

application. The complete application 

may be obtained via the Commission’s 

Web site by searching for the file 

number, or an applicant using the 

Company name box, at http://

www.sec.gov/search/search.htm or by 

calling (202) 551–8090. 

Applicants’ Representations 

1. Each Trust is organized as a 

Delaware statutory trust and is 

registered under the Act as an open-end, 

management investment company. Each 

mstockstill on DSK4VPTVN1PROD with NOTICES