54676 Federal Register / Vol. 75, No. 173 / Wednesday, September 8, 2010 / Notices 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3A Managed Fund Share is a security that 

represents an interest in an investment company 

registered under the Investment Company Act of 

1940 (15 U.S.C. 80a) (‘‘1940 Act’’) organized as an 

open-end investment company or similar entity that 

invests in a portfolio of securities selected by its 

investment advisor consistent with its investment 

objectives and policies. In contrast, an open-end 

investment company that issues Investment 

Company Units, listed and traded on the Exchange 

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

provide investment results that correspond 

generally to the price and yield performance of a 

specific foreign or domestic stock index, fixed 

income securities index or combination thereof. 

4The Commission approved NYSE Arca Equities 

Rule 8.600 and the listing and trading of certain 

funds of the PowerShares Actively Managed 

Exchange-Traded Funds Trust on the Exchange 

pursuant to Rule 8.600 in Securities Exchange Act 

Release No. 57619 (April 4, 2008) 73 FR 19544 

(April 10, 2008) (SR–NYSEArca–2008–25). The 

Commission also previously approved listing and 

trading on the Exchange of a number of actively 

managed funds under Rule 8.600. See, e.g., 

Securities Exchange Act Release Nos. 57801 (May 

8, 2008), 73 FR 27878 (May 14, 2008) (SR– 

NYSEArca–2008–31) (order approving Exchange 

listing and trading of twelve actively-managed 

funds of the WisdomTree Trust); 60460 (August 7, 

2009), 74 FR 41468 (August 17, 2009) (SR– 

NYSEArca–2009–55) (order approving listing of 

Dent Tactical ETF). 

5The Trust is registered under the 1940 Act. On 

June 30, 2010, the Trust filed with the Commission 

Form N–1A under the Securities Act of 1933 (15 

U.S.C. 77a), and under the 1940 Act relating to the 

Fund (File Nos. 333–157876 and 811–22110) 

(‘‘Registration Statement’’). The description of the 

operation of the Trust and the Fund herein is based 

on the Registration Statement. 

6The Exchange represents that the Advisor and 

Sub-Advisor and their related personnel are subject 

to Investment Advisers Act Rule 204A–1. This Rule 

specifically requires the adoption of a code of ethics 

by an investment advisor to include, at a minimum: 

(i) Standards of business conduct that reflect the 

firm’s/personnel fiduciary obligations; (ii) 

provisions requiring supervised persons to comply 

with applicable Federal securities laws; (iii) 

provisions that require all access persons to report, 

and the firm to review, their personal securities 

transactions and holdings periodically as 

specifically set forth in Rule 204A–1; (iv) provisions 

requiring supervised persons to report any 

violations of the code of ethics promptly to the 

chief compliance officer (‘‘CCO’’) or, provided the 

CCO also receives reports of all violations, to other 

persons designated in the code of ethics; and (v) 

provisions requiring the investment advisor to 

provide each of the supervised persons with a copy 

of the code of ethics with an acknowledgement by 

said supervised persons. In addition, Rule 206(4)– 

7 under the Advisers Act makes it unlawful for an 

investment advisor to provide investment advice to 

clients unless such investment advisor has (i) 

adopted and implemented written policies and 

procedures reasonably designed to prevent 

violation, by the investment advisor and its 

supervised persons, of the Advisers Act and the 

Commission rules adopted thereunder; (ii) 

implemented, at a minimum, an annual review 

regarding the adequacy of the policies and 

procedures established pursuant to subparagraph (i) 

above and the effectiveness of their 

implementation; and (iii) designated an individual 

(who is a supervised person) responsible for 

administering the policies and procedures adopted 

under subparagraph (i) above. 

Reference Section, 100 F Street, NE., 

Washington, DC 20549, on official 

business days between the hours of 10 

a.m. and 3 p.m. Copies of such filings 

also will be available for inspection and 

copying at the principal office of FICC 

and on FICC’s Web site, http:// 

www.dtcc.com. 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–FICC– 

2010–06 and should be submitted on or 

before September 29, 2010. 

For the Commission by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–22351 Filed 9–7–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62788; File No. SR– 

NYSEArca–2010–79] 

Self-Regulatory Organizations; Notice 

of Filing of Proposed Rule Change by 

NYSE Arca, Inc. Relating to Listing and 

Trading of Cambria Global Tactical 

ETF 

August 30, 2010. 

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 August 

23, 2010, NYSE Arca, Inc. (the 

‘‘Exchange’’ or ‘‘NYSE Arca’’) 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 self-regulatory 

organization. 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 list and 

trade shares of the Cambria Global 

Tactical ETF under NYSE Arca Equities 

Rule 8.600. The text of the proposed 

rule change is available at the principal 

office of the Exchange, the 

Commission’s Public Reference Room, 

and http://www.nyse.com. 

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 

self-regulatory organization included 

statements concerning the purpose of, 

and basis for, the proposed rule change 

and discussed any comments it received 

on the proposed rule change. The text 

of those statements may be examined at 

the places specified in Item IV below. 

The Exchange has prepared summaries, 

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

of the most significant parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to list and 

trade the following Managed Fund 

Shares 3 (‘‘Shares’’) under NYSE Arca 

Equities Rule 8.600: the Cambria Global 

Tactical ETF (‘‘Fund’’).4 The Shares will 

be offered by AdvisorShares Trust (the 

‘‘Trust’’), a statutory trust organized 

under the laws of the State of Delaware 

and registered with the Commission as 

an open-end management investment 

company.5 The investment advisor to 

the Fund is AdvisorShares Investments, 

LLC (the ‘‘Advisor’’). Cambria 

Investment Management, Inc. is the 

Fund’s sub-advisor (‘‘Cambria’’ or ‘‘SubAdvisor’’) and provides day-to-day 

portfolio management of the Fund. 

Foreside Fund Services, LLC (the 

‘‘Distributor’’) is the principal 

underwriter and distributor of the 

Fund’s Shares. Neither the Advisor nor 

the Sub-Advisor is affiliated with a 

broker-dealer.6

Description of the Fund 

According to the Registration 

Statement, the Fund’s investment 

objective is to preserve and grow capital 

from investments in the U.S. and foreign 

equity, fixed income, commodity and 

currency markets, independent of 

market direction. The Fund seeks to 

preserve and grow capital by producing 

absolute returns with reduced volatility 

and manageable risk and drawdowns. 

The Fund’s investment strategies are 

inherently designed as risk-management 

and capital preservation approaches. 

The Fund is an actively managed ETF 

and thus, does not seek to replicate the 

performance of a specific index, but 

rather uses an active investment strategy 

to meet its investment objective. 

The Fund is considered a ‘‘fund-offunds’’ that seeks to achieve its 

investment objective by primarily 

investing in other exchange-traded 

funds listed and traded in the United 

States (the ‘‘Underlying ETFs’’) that offer 


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7According to the Registration Statement, one of 

several requirements for RIC qualification is that a 

Fund must receive at least 90% of the Fund’s gross 

income each year from dividends, interest, 

payments with respect to securities loans, gains 

from the sale or other disposition of stock, 

securities or foreign currencies, or other income 

derived with respect to the Fund’s investments in 

stock, securities, foreign currencies and net income 

from an interest in a qualified publicly traded 

partnership (the ‘‘90% Test’’). A second requirement 

for qualification as a RIC is that a Fund must 

diversify its holdings so that, at the end of each 

fiscal quarter of the Fund’s taxable year: (a) At least 

50% of the market value of the Fund’s total assets 

is represented by cash and cash items, U.S. 

Government securities, securities of other RICs, and 

other securities, with these other securities limited, 

in respect to any one issuer, to an amount not 

greater than 5% of the value of the Fund’s total 

assets or 10% of the outstanding voting securities 

of such issuer; and (b) not more than 25% of the 

value of its total assets are invested in the securities 

(other than U.S. Government securities or securities 

of other RICs) of any one issuer or two or more 

issuers which the Fund controls and which are 

engaged in the same, similar, or related trades or 

businesses, or the securities of one or more 

qualified publicly traded partnership (the ‘‘Asset 

Test’’). 

diversified exposure, including inverse 

exposure to: Global regions, countries, 

styles (market capitalization, value, 

growth, etc.) or sectors, and exchangetraded products, including but not 

limited to: Exchange-traded notes 

(‘‘ETNs’’), exchange-traded currency 

trusts and closed-end funds. In addition, 

as described below, from time to time 

and to a lesser extent, the Fund may 

invest in individual equities (stocks), 

futures contracts, options (calls or puts) 

in an attempt to limit portfolio risk or 

enhance returns. The Fund charges its 

own expenses and also indirectly bears 

a proportionate share of the Underlying 

ETFs’ expenses. 

According to the Registration 

Statement, the Fund will invest in 

Underlying ETFs spanning all the major 

world asset classes including equities, 

bonds, real estate, commodities, and 

currencies. The Underlying ETFs are 

themselves registered investment 

companies, the shares of which trade on 

a national securities exchange. The 

Underlying ETFs will track the 

performance of a securities index 

representing an asset class, sector or 

other market segment. 

The Sub-Advisor will utilize a 

quantitative approach with strict risk 

management controls to actively manage 

the Fund’s portfolio in an attempt to 

control downside losses and protect 

capital. The Fund’s portfolio will be 

rebalanced to target allocations at least 

monthly and as often as weekly. The 

Fund’s strategy utilizes a proprietary 

quantitative trend-following approach to 

actively manage a diversified portfolio 

of world asset classes. The strategy is 

diversified across markets and 

timeframes with strict risk control 

methods that are completely rules-based 

and systematic. According to the 

Registration Statement, no effort is made 

to forecast future market trends or 

direction; rather, the Fund intends to 

capture profits in these trends when and 

where they develop. 

The Sub-Advisor will select a group 

of Underlying ETFs and other exchangetraded products for the Fund pursuant 

to an ‘‘active’’ management strategy for 

asset allocation, security selection and 

portfolio construction. The Fund 

allocates its assets among a group of 

Underlying ETFs in different 

percentages of stocks, bonds, 

commodities and cash that seek to 

achieve a unique investment objective 

and the Fund will periodically change 

the composition of its portfolio to best 

meet its investment objective. 

The Fund currently intends to invest 

primarily in the securities of Underlying 

ETFs consistent with the requirements 

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

any rule, regulation or order of the SEC 

or interpretation thereof. The 

Underlying ETFs in which the Fund 

will invest will primarily be indexbased ETFs that hold substantially all of 

their assets in securities representing a 

specific index. 

The Fund may invest in ETNs. ETNs 

are debt obligations of investment banks 

which are traded on exchanges and the 

returns of which are linked to the 

performance of market indexes. The 

Fund may invest in closed-end funds, 

pooled investment vehicles that are 

registered under the 1940 Act and 

whose shares are listed and traded on 

U.S. national securities exchanges. 

The Fund and the Underlying ETFs 

may invest in equity securities. Equity 

securities represent ownership interests 

in a company or partnership and consist 

of common stocks, preferred stocks, 

warrants to acquire common stock, 

securities convertible into common 

stock, and investments in master limited 

partnerships. 

The Fund may use futures contracts 

and related options for bona fide 

hedging; attempting to offset changes in 

the value of securities held or expected 

to be acquired or be disposed of; 

attempting to gain exposure to a 

particular market, index or instrument; 

or other risk management purposes. To 

the extent the Fund uses futures and/or 

options on futures, it will do so in 

accordance with Rule 4.5 under the 

Commodity Exchange Act (‘‘CEA’’). 

The Fund may purchase and write put 

and call options on indices and enter 

into related closing transactions. 

The Fund may purchase or hold 

illiquid securities, including securities 

that are not readily marketable and 

securities that are not registered 

(‘‘restricted securities’’) under the 

Securities Act of 1933 (the ‘‘1933 Act’’), 

but which can be offered and sold to 

‘‘qualified institutional buyers’’ under 

Rule 144A under the 1933 Act. The 

Fund will not invest more than 15% of 

the Fund’s net assets in illiquid 

securities. The term ‘‘illiquid securities’’ 

for this purpose means securities that 

cannot be disposed of within seven days 

in the ordinary course of business at 

approximately the amount at which the 

Fund has valued the securities. 

The Fund may enter into repurchase 

agreements with financial institutions, 

which may be deemed to be loans. The 

Fund may enter into reverse repurchase 

agreements without limit as part of the 

Fund’s investment strategy. The Fund 

may buy and sell stock index futures 

contracts with respect to any stock 

index traded on a recognized stock 

exchange or board of trade. The Fund 

may enter into swap agreements, 

including, but not limited to, equity 

index swaps and interest rate swap 

agreements. 

The Fund, or the ETFs in which it 

invests, may invest in U.S. government 

securities. The Fund, from time to time, 

in the ordinary course of business, may 

purchase securities on a when-issued or 

delayed-delivery basis (i.e., delivery and 

payment can take place between a 

month and 120 days after the date of the 

transaction). The Fund may invest in 

U.S. Treasury zero-coupon bonds. To 

respond to adverse market, economic, 

political or other conditions, the Fund 

may invest 100% of its total assets, 

without limitation, in high-quality 

short-term debt securities and money 

market instruments. 

Except for Underlying ETFs that may 

hold non-US issues, the Fund will not 

otherwise invest in non-U.S. issues. 

According to the Registration 

Statement, the Fund will seek to qualify 

for treatment as a Regulated Investment 

Company (‘‘RIC’’) under the Internal 

Revenue Code.7

Creations and redemptions of Shares 

occur in large specified blocks of 

Shares, referred to as ‘‘Creation Units’’. 

According to the Registration Statement, 

the Shares of the Fund are ‘‘created’’ at 

their net asset value (‘‘NAV’’) by market 

makers, large investors and institutions 

only in block-size Creation Units of 

50,000 shares or more. A ‘‘creator’’ 

enters into an authorized participant 

agreement (a ‘‘Participant Agreement’’) 

with the Fund’s Distributor or a 

Depository Trust Company participant 

that has executed a Participant 

Agreement with the Distributor (an 

‘‘Authorized Participant’’), and deposits 

into the Fund a portfolio of securities 


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8 17 CFR 240.10A–3. 

9The Bid/Ask Price of the Fund is determined 

using 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 Fund and its service providers. 

10Under accounting procedures followed by the 

Fund, trades made on the prior business day (‘‘T’’) 

will be booked and reflected in NAV on the current 

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

11See NYSE Arca Equities Rule 7.12, 

Commentary .04. 

closely approximating the holdings of 

the Fund and a specified amount of 

cash, together totaling the NAV of the 

Creation Unit(s), in exchange for 50,000 

shares of the Fund (or multiples 

thereof). Similarly, shares can only be 

redeemed in Creation Units, generally 

50,000 shares or more, principally inkind for a portfolio of securities held by 

the Fund and a specified amount of cash 

together totaling the NAV of the 

Creation Unit(s). Shares are not 

redeemable from the Fund except when 

aggregated in Creation Units. The prices 

at which creations and redemptions 

occur are based on the next calculation 

of NAV after an order is received in a 

form prescribed in the Participant 

Agreement. 

The Shares will conform to the initial 

and continued listing criteria under 

NYSE Arca Equities Rule 8.600. The 

Exchange represents that, for initial 

and/or continued listing, the Fund will 

be in compliance with Rule 10A–3 8

under the Exchange Act, as provided by 

NYSE Arca Equities Rule 5.3. A 

minimum of 100,000 Shares will be 

outstanding at the commencement of 

trading on the Exchange. The Exchange 

will obtain a representation from the 

issuer of the Shares that the NAV and 

the Disclosed Portfolio will be made 

available to all market participants at 

the same time. 

Availability of Information 

The Fund’s Web site (http:// 

www.advisorshares.com), which will be 

publicly available prior to the public 

offering of Shares, will include a form 

of the Prospectus for the Fund that may 

be downloaded. The Fund’s Web site 

will include additional quantitative 

information updated on a daily basis, 

including, for the Fund, (1) daily trading 

volume, the prior business day’s 

reported closing price, NAV and midpoint of the bid/ask spread at the time 

of calculation of such NAV (the ‘‘Bid/ 

Ask Price’’),9 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. On each business day, before 

commencement of trading in Shares in 

the Core Trading Session on the 

Exchange, the Fund will disclose on its 

Web site the Disclosed Portfolio as 

defined in NYSE Arca Equities Rule 

8.600(c)(2) that will form the basis for 

the Fund’s calculation of NAV at the 

end of the business day.10

On a daily basis, for each portfolio 

security of the Fund, the Fund will 

disclose on its Web site the following 

information: Ticker symbol, name of 

security, number of shares held in the 

portfolio, and percentage weighting of 

the security in the portfolio. On a daily 

basis, the Advisor will disclose for each 

portfolio security or other financial 

instrument of the Fund the following 

information: Ticker symbol (if 

applicable), name of security or 

financial instrument, number of shares 

or dollar value of financial instruments 

held in the portfolio, and percentage 

weighting of the security or financial 

instrument in the portfolio. The Web 

site information will be publicly 

available at no charge. 

In addition, a basket composition file, 

which includes the security names and 

share quantities required to be delivered 

in exchange for Fund shares, together 

with estimates and actual cash 

components, will be publicly 

disseminated daily prior to the opening 

of the New York Stock Exchange 

(‘‘NYSE’’) via the National Securities 

Clearing Corporation. The basket 

represents one Creation Unit of the 

Fund. 

The NAV of the Fund will normally 

be determined as of the close of the 

regular trading session on the NYSE 

(ordinarily 4 p.m. Eastern Time) on each 

business day. 

Investors can also obtain the Trust’s 

Statement of Additional Information 

(‘‘SAI’’), the Fund’s Shareholder Reports, 

and its Form N–CSR and Form N–SAR, 

filed twice a year. The Trust’s SAI and 

Shareholder Reports are available free 

upon request from the Trust, and those 

documents and the Form N–CSR and 

Form N–SAR may be viewed on-screen 

or downloaded from the Commission’s 

Web site at http://www.sec.gov. 

Information regarding market price and 

trading volume of the Shares is and will 

be continually available on a real-time 

basis throughout the day on brokers’ 

computer screens and other electronic 

services. Information regarding the 

previous day’s closing price and trading 

volume information will be published 

daily in the financial section of 

newspapers. Quotation and last sale 

information for the Shares will be 

available via the Consolidated Tape 

Association (‘‘CTA’’) high-speed line. In 

addition, the Portfolio Indicative Value, 

as defined in NYSE Arca Equities Rule 

8.600(c)(3), will be disseminated by the 

Exchange at least every 15 seconds 

during the Core Trading Session by one 

or more major market data venders. The 

dissemination of the Portfolio Indicative 

Value, together with the Disclosed 

Portfolio, will allow investors to 

determine the value of the underlying 

portfolio of the Fund on a daily basis 

and to provide a close estimate of that 

value throughout the trading day. 

Additional information regarding the 

Trust and the Shares, including 

investment strategies, risks, creation and 

redemption procedures, fees, portfolio 

holdings disclosure policies, 

distributions and taxes is included in 

the Registration Statement. All terms 

relating to the Fund that are referred to, 

but not defined in, this proposed rule 

change are defined in the Registration 

Statement. 

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 of 

the Fund.11 Trading in Shares of the 

Fund will be halted if the circuit breaker 

parameters in NYSE Arca Equities Rule 

7.12 have been reached. Trading also 

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 securities 

comprising the Disclosed Portfolio and/ 

or the financial instruments of the Fund; 

or (2) whether other unusual conditions 

or circumstances detrimental to the 

maintenance of a fair and orderly 

market are present. Trading in the 

Shares will be subject to NYSE Arca 

Equities Rule 8.600(d)(2)(D), which sets 

forth circumstances under which Shares 

of the Fund may be halted. 

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. Shares will trade on 

the NYSE Arca Marketplace from 4 a.m. 

to 8 p.m. Eastern Time in accordance 

with NYSE Arca Equities Rule 7.34 

(Opening, Core, and Late Trading 

Sessions). The Exchange has 

appropriate rules to facilitate 

transactions in the Shares during all 


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12For a list of the current members of ISG, see 

http://. The Exchange may obtain information from 

futures exchanges with which the Exchange has 

entered into a surveillance sharing agreement or 

that are ISG members. The Exchange notes that not 

all components of the Disclosed Portfolio for the 

Fund may trade on markets that are members of ISG 

or with which the Exchange has in place a 

comprehensive surveillance sharing agreement. 13 15 U.S.C. 78f(b)(5). 

trading sessions. As provided in NYSE 

Arca Equities Rule 7.6, Commentary .03, 

the minimum price variation (‘‘MPV’’) 

for quoting and entry of orders in equity 

securities traded on the NYSE Arca 

Marketplace is $0.01, with the exception 

of securities that are priced less than 

$1.00 for which the MPV for order entry 

is $0.0001. 

Surveillance 

The Exchange intends to utilize its 

existing surveillance procedures 

applicable to derivative products (which 

include Managed Fund Shares) to 

monitor trading in the Shares. The 

Exchange represents that these 

procedures are adequate to properly 

monitor Exchange trading of the Shares 

in all trading sessions and to deter and 

detect violations of Exchange rules and 

applicable Federal securities laws. 

The Exchange’s current trading 

surveillance focuses on detecting 

securities trading outside their normal 

patterns. When such situations are 

detected, surveillance analysis follows 

and investigations are opened, where 

appropriate, to review the behavior of 

all relevant parties for all relevant 

trading violations. 

The Exchange may obtain information 

via the Intermarket Surveillance Group 

(‘‘ISG’’) from other exchanges that are 

members of ISG.12

In addition, the Exchange also has a 

general policy prohibiting the 

distribution of material, non-public 

information by its employees. 

Information Bulletin 

Prior to the commencement of 

trading, the Exchange will inform its 

Equity Trading Permit (‘‘ETP’’) Holders 

in an Information Bulletin (‘‘Bulletin’’) 

of the special characteristics and risks 

associated with trading the Shares. 

Specifically, the Bulletin will discuss 

the following: (1) The procedures for 

purchases and redemptions of Shares in 

Creation Unit aggregations (and that 

Shares are not individually redeemable); 

(2) NYSE Arca Equities Rule 9.2(a), 

which imposes a duty of due diligence 

on its ETP Holders to learn the essential 

facts relating to every customer prior to 

trading the Shares; (3) the risks involved 

in trading the Shares during the 

Opening and Late Trading Sessions 

when an updated Portfolio Indicative 

Value will not be calculated or publicly 

disseminated; (4) how information 

regarding the Portfolio Indicative Value 

is disseminated; (5) the requirement that 

ETP Holders 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 Bulletin will 

reference that the Fund is subject to 

various fees and expenses described in 

the Registration Statement. The Bulletin 

will discuss any exemptive, no-action, 

and interpretive relief granted by the 

Commission from any rules under the 

Exchange Act. The Bulletin will also 

disclose that the NAV for the Shares 

will be calculated after 4 p.m. Eastern 

Time each trading day. 

2. Statutory Basis 

The basis under the Exchange Act for 

this proposed rule change is the 

requirement under Section 6(b)(5) 13

that an exchange have rules that are 

designed to prevent fraudulent and 

manipulative acts and practices, to 

promote just and equitable principles of 

trade, to remove impediments to, and 

perfect the mechanism of a free and 

open market and, in general, to protect 

investors and the public interest. The 

Exchange believes that the proposed 

rule change will facilitate the listing and 

trading of an additional type of activelymanaged exchange-traded product that 

will enhance competition among market 

participants, to the benefit of investors 

and the marketplace. 

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 purposes of the Act. 

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 

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 e-mail to rulecomments@sec.gov. Please include File 

Number SR–NYSEArca–2010–79 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–1090. 

All submissions should refer to File 

Number SR–NYSEArca–2010–79. This 

file number should be included on the 

subject line if e-mail 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 

a.m. and 3 p.m. Copies of such 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– 


jlentini on DSKJ8SOYB1PROD with NOTICES
54680 Federal Register / Vol. 75, No. 173 / Wednesday, September 8, 2010 / Notices 

14 17 CFR 200.30–3(a)(12). 

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

2The text of the proposed rule change is attached 

as Exhibit 5 to DTC’s filing and is available at 

http://www.dtcc.com/downloands/legal/ 

rule_filings/2010/dtc/2010-11.pdf. 

3 15 U.S.C. 78s(b)(3)(A)(iii) and 17 CFR 240.19b– 

4(f)(3). 

4The Commission has modified the text of the 

summaries prepared by the DTC. 

5 DTC’s rules are available at http:// 

www.dtcc.com/legal/rules_proc/dtc_rules.pdf. 

6Managing Director is a more senior level of 

officer than that of Vice President. 

7On August 20, 2010, FICC filed and on August 

23, 2010, NSCC filed similar rule changes. 

Securities Exchange Act Release No. 62796 (August 

30, 2010) [SR–FICC–2010–06] and 62794 (August 

30, 2010) [File No. SR–NSCC–2010–08] 

respectively. 

8 15 U.S.C. 78q–1. 

9 15 U.S.C. 78s(b)(3)(A)(iii). 

10 17 CFR 240.19b–4(f)(3). 

NYSEArca–2010–79 and should be 

submitted on or before September 29, 

2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–22286 Filed 9–7–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62795; File No. SR–DTC– 

2010–11] 

Self-Regulatory Organizations; The 

Depository Trust Company; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Amend 

Rules Relating to Authority To 

Suspend or Waive DTC Rules and 

Procedures 

August 30, 2010. 

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

Securities Exchange Act of 1934 

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

August 23, 2010, The Depository Trust 

Company (‘‘DTC’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change described in Items I, II, and III 

below, which items have been prepared 

primarily by DTC.2 DTC filed the 

proposed rule change pursuant to 

Section 19(b)(3)(A)(iii) and Rule 19b– 

4(f)(3) thereunder so that the proposed 

rule change was effective upon filing 

with the Commission.3 The Commission 

is publishing this notice to solicit 

comments on the proposed rule change 

from interested parties. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The proposed rule change will amend 

DTC rules to provide that any officer 

having a rank of Managing Director or 

higher is authorized to suspend or 

waive DTC rules and procedures. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

DTC 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. DTC has prepared 

summaries, set forth in sections (A), (B), 

and (C) below, of the most significant 

aspects of these statements.4

(A) Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

The proposed rule change amends 

Rule 18 of the DTC’s Rules, Bylaws and 

Organization Certificate of The 

Depository Trust Company 5 (‘‘Rules’’) to 

state that the Rules and procedures of 

DTC may be suspended or waived by 

any officer having a rank of Managing 

Director or higher. Prior to the proposed 

amendment, Rule 18 provided such 

authority to officers having a rank of 

Vice President or higher.6 This 

proposed rule change also harmonizes 

DTC’s rules with those of the Fixed 

Income Clearing Corporation’s (‘‘FICC’’) 

Government Securities Division and 

Mortgage-Backed Securities Division as 

well as those of the National Securities 

Clearing Corporation (‘‘NSCC’’) as the 

rules relate to the authority to suspend 

or waive rules.7

DTC believes that the proposed rule 

change is consistent with the 

requirements of Section 17A of the Act 8

and the rules and regulations 

thereunder that are applicable to DTC 

because the proposed rule will require 

a more senior level of management to 

authorize a suspension or waiver of DTC 

rules under the proposed rule change 

thereby ensuring more equitable 

compliance with DTC’s rules and 

procedures. 

(B) Self-Regulatory Organization’s 

Statement on Burden on Competition 

DTC does not believe that the 

proposed rule change will impose any 

burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. 

(C) Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments relating to the 

proposed rule change have been 

solicited or received. DTC will notify 

the Commission of any written 

comments received by DTC. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective upon filing pursuant to Section 

19(b)(3)(A)(iii) of the Act 9 and Rule 

19b–4(f)(3) 10 thereunder because it is 

concerned solely with the 

administration of DTC. At any time 

within sixty days of the filing of such 

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. 

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 e-mail to rulecomments@sec.gov. Please include File 

Number SR–DTC–2010–11 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–1090. 

All submissions should refer to File 

Number SR–DTC–2010–11. This file 

number should be included on the 

subject line if e-mail 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 


jlentini on DSKJ8SOYB1PROD with NOTICES