Federal Register / Vol. 79, No. 200 / Thursday, October 16, 2014 / Notices 62221 

34 15 U.S.C. 78s(b)(3)(A). 

35 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6) requires a self-regulatory organization to give 

the Commission written notice of its intent to file 

the proposed rule change at least five business days 

prior to the date of filing of the proposed rule 

change, or such shorter time as designated by the 

Commission. The Exchange has satisfied this 

requirement. 36 17 CFR 200.30–3(a)(12). 

instruments. These procedures have 

been adopted consistent with Section 18 

of the 1940 Act and related Commission 

guidance. In addition, each Fund will 

include appropriate risk disclosure in 

its offering documents, including 

leveraging risk. 

• The listing and trading of Shares of 

a Fund is governed by Exchange initial 

and continued listing rules as approved 

by the Commission, including NYSE 

Arca Equities Rule 8.600. 

• As described in the Prior Releases 

under ‘‘Availability of Information’’, the 

Funds’ Web site discloses specified 

quantitative information updated on a 

daily basis, as well as the Disclosed 

Portfolio as defined in NYSE Arca 

Equities Rule 8.600(c)(2) that will form 

the basis for a Fund’s calculation of 

NAV at the end of the business day. On 

a daily basis, each Fund will disclose on 

each Fund’s Web site the following 

information regarding each portfolio 

holding, as applicable to the type of 

holding: Ticker symbol, CUSIP number 

or other identifier, if any; a description 

of the holding (including the type of 

holding, such as the type of swap); the 

identity of the security, commodity, 

index or other asset or instrument 

underlying the holding, if any; for 

options, the option strike price; quantity 

held (as measured by, for example, par 

value, notional value or number of 

shares, contracts or units); maturity 

date, if any; coupon rate, if any; 

effective date, if any; market value of the 

holding; and the percentage weighting 

of the holding in each Fund’s portfolio. 

• The proposed rule change helps to 

perfect the mechanism of a free and 

open market by enhancing investor 

choice and providing investors a cost 

effective and efficient means to access 

an asset class through a diversified 

vehicle that is listed and traded on an 

exchange. 

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. The 

proposed rule change will allow each 

Fund to use derivative instruments as a 

more efficient substitute for taking a 

position in the underlying asset and/or 

as part of a strategy designed to reduce 

exposure to risks (such as interest rate 

or currency risk) or to enhance 

investment returns. The proposed 

change, therefore, will provide 

additional flexibility to the Adviser to 

seek each Fund’s investment objective 

and will enhance each Fund’s ability to 

compete with other actively managed 

exchange-traded funds and mutual 

funds. 

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 

Because the foregoing proposed rule 

change does not: (i) Significantly affect 

the protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate, if 

consistent with the protection of 

investors and the public interest, the 

proposed rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act 34 and Rule 19b–4(f)(6)(iii) 

thereunder.35

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is 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 email to rule-comments@

sec.gov. Please include File Number SR– 

NYSEArca–2014–104 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–NYSEArca–2014–104. 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 such 

filing will also 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– 

NYSEArca–2014–104 and should be 

submitted on or before November 6, 

2014. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.36

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–24545 Filed 10–15–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73332 ; File No. SR– 

FINRA–2014–043] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change to Adopt as Permanent 

the Limited Fee Waiver Pilot Program 

Pursuant to FINRA Rule 7730 

October 9, 2014. 

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

Securities Exchange Act of 1934 


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62222 Federal Register / Vol. 79, No. 200 / Thursday, October 16, 2014 / Notices 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(2). 

5See Securities Exchange Act Release No. 68255 

(November 19, 2012), 77 FR 70515 (November 26, 

2012) (Notice of Filing and Immediate Effectiveness 

of File No. SR–FINRA–2012–049) (‘‘Free Trial 

Pilot’’ or ‘‘Pilot’’). 

6Pursuant to FINRA Rule 7730(c)(1)(A), FINRA 

assesses charges for professional users of $60 per 

month per Data Set, per display application to 

access real-time TRACE transaction data. In general, 

real-time TRACE transaction data is accessed not 

directly from FINRA but through a vendor, such as 

Bloomberg, L.P. and its Bloomberg display 

application. Under these types of arrangements, a 

professional user pays the vendor for the license to 

use the vendor’s display application and if the 

display application displays real-time TRACE 

transaction data, the vendor must remit the 

applicable TRACE fee to FINRA. 

7 In addition, after FINRA has waived the fee in 

connection with a free trial offered by a member, 

vendor or other redistributor, a professional and the 

member, employer, or other person whom the 

professional is associated with, employed by or 

otherwise affiliated with, may not use the waiver 

again for that member, vendor or other distributor 

until 12 months has lapsed from the last day of the 

prior waiver. 

8See Securities Exchange Act Release No. 70483 

(September 24, 2013), 78 FR 60003 (September 30, 

2013) (Notice of Filing and Immediate Effectiveness 

of a Proposed Rule Change to Extend the Limited 

Waiver of the TRACE Professional Real-Time Data 

Display Fee Pilot; File No. SR–FINRA–2013–040). 

9The fee waiver pilot program is not applicable 

to professionals associated with, employed by or 

otherwise affiliated with entities that obtain 

unlimited internal use of market data through any 

number of display applications by paying a flat fee 

of $7,500 (per month per Data Set) under Rule 

7730(c)(1)(A) (i.e., ‘‘enterprise fee’’). The enterprise 

fee structure is inconsistent with the limitation that 

the fee waiver may apply to not more than four 

professionals per entity, per trial period. 

10For example, if a professional were granted a 

waiver for one month beginning on November 15, 

2014, the professional would not be eligible for 

another waiver in connection with another free trial 

offered by the same vendor until December 15, 

2015. 

11 15 U.S.C. 78o–3(b)(6). 

12 15 U.S.C. 78o–3(b)(5). 

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

notice is hereby given that on October 

3, 2014, Financial Industry Regulatory 

Authority, Inc. (‘‘FINRA’’) filed with the 

Securities and Exchange Commission 

(‘‘SEC’’ or ‘‘Commission’’) the proposed 

rule change as described in Items I, II, 

and III below, which Items have been 

prepared by FINRA. FINRA has 

designated the proposed rule change as 

‘‘establishing or changing a due, fee or 

other charge’’ under Section 

19(b)(3)(A)(ii) of the Act 3 and Rule 19b– 

4(f)(2) thereunder,4 which renders the 

proposal effective upon receipt of this 

filing by the Commission. 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 

FINRA is proposing to amend FINRA 

Rule 7730(c)(1)(A) to adopt as 

permanent the limited fee waiver pilot 

program, which provides a one month 

waiver of the Professional Real-Time 

Data Display Fee, permitting 

professionals to access real-time Trade 

Reporting and Compliance Engine 

(‘‘TRACE’’) transaction data on a trial 

basis. 

The text of the proposed rule change 

is available on FINRA’s Web site at 

http://www.finra.org, at the principal 

office of FINRA 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, 

FINRA 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. FINRA has prepared 

summaries, set forth in sections A, B, 

and C below, of the most significant 

aspects of such statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, Proposed Rule 

Change 

1. Purpose 

On November 7, 2012, FINRA filed an 

immediately effective rule change to 

implement, as a one-year pilot, a limited 

fee waiver to permit certain market 

participants to access real-time TRACE 

transaction data for an initial trial 

period of one month under specified 

conditions.5

Specifically, the Pilot provides that, 

where a member, vendor or other 

redistributor (collectively, ‘‘vendors’’) 

offers a professional a free trial of a data 

product that includes access to real-time 

TRACE transaction data, FINRA will 

waive the Professional Real-Time Data 

Display Fee that normally would be 

assessed pursuant to FINRA Rule 

7730(c)(1)(A) for a period of no longer 

than 31 days, concurrent with a free 

trial of the vendor’s product.6 Under the 

Pilot, up to four professionals associated 

with, employed by, or otherwise 

affiliated with a member, employer or 

other person may receive the FINRA fee 

waiver during the free trial.7

The Pilot originally was scheduled to 

operate for a period of one year, but was 

extended for an additional year and 

currently is scheduled to expire on 

November 7, 2014.8 FINRA proposes to 

adopt as permanent the Free Trial Pilot 

program subject to the same terms and 

conditions that applied during the pilot 

period. Thus, the fee waiver would 

continue to: (1) Be limited to a period 

not longer than 31 days; (2) be available 

to not more than four professionals 

associated with, employed by, or 

otherwise affiliated with a member, 

employer or other person during the free 

trial period; 9 and provide that, once the 

real-time data display fee has been 

waived, a professional and the member, 

employer or other person whom the 

professional is associated with, 

employed by, or otherwise affiliated 

with, would not be eligible for the 

FINRA fee waiver again in connection 

with another free trial offered by the 

same vendor until 12 months had 

lapsed from the last day of the prior fee 

waiver.10

However, a professional and the 

member, employer or other person with 

whom the professional is associated or 

otherwise affiliated would be eligible for 

the FINRA fee waiver in connection 

with a free trial offered by a different 

vendor regarding such vendor’s data 

products. 

FINRA has filed the proposed rule 

change for immediate effectiveness. The 

implementation date will be the date of 

filing. 

2. Statutory Basis 

FINRA believes that the proposed rule 

change is consistent with the provisions 

of Section 15A(b)(6) of the Act,11 which 

requires, among other things, that 

FINRA rules must be designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, and, in 

general, to protect investors and the 

public interest, and Section 15A(b)(5) of 

the Act,12 which requires, among other 

things, that FINRA rules provide for the 

equitable allocation of reasonable dues, 

fees and other charges among members 

and issuers and other persons using any 

facility or system that FINRA operates 

or controls. 

FINRA believes that adopting the Free 

Trial Pilot as a permanent program, 

which encourages additional 

professionals to test and use real-time 

TRACE transaction data, may promote 

more accurate and timely pricing and 

valuations of debt securities by 

members, and may prevent fraudulent 

and manipulative acts and practices 

regarding pricing and valuations for the 

protection of investors and the public 

interest. The fee waiver also enhances a 

member’s ability to access and test the 

uses of real-time TRACE transaction 


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Federal Register / Vol. 79, No. 200 / Thursday, October 16, 2014 / Notices 62223 

13 15 U.S.C. 78s(b)(3)(A). 

14 17 CFR 240.19b–4(f)(2). 

15 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3NYSE MKT designates its Rule 13 as ‘‘Rule 13— 

Equities.’’ All references to NYSE MKT rules in this 

order are to its equities rules, whether or not the 

‘‘—Equities’’ designation is included in the 

reference. 

4See Securities Exchange Act Release Nos. 72548 

(July 7, 2014), 79 FR 40183 (‘‘NYSE Notice’’) and 

72547 (July 7, 2014), 79 FR 40169 (‘‘NYSE MKT 

Notice’’). 

5See Securities Exchange Act Release Nos. 72893 

(Aug. 21, 2014), 79 FR 51208 (Aug. 27, 2014) and 

72894 (Aug. 21, 2014), 79 FR 51208. 

data to determine if the data would 

further its business needs. 

The fee waiver has operated on a pilot 

basis for two years, and FINRA has not 

experienced problems with its 

implementation or administration. 

FINRA believes that permanently 

adopting the Pilot, with the same 

conditions under which it has been 

operating, preserves these potential 

benefits for all professionals that 

participate in a free trial of a vendor 

data product that includes real-time 

TRACE transaction data. Any 

professional that tests data products 

during a free trial would be eligible for 

and would benefit from the concurrent 

FINRA fee waiver, consistent with the 

previously discussed conditions 

applicable to eligibility for the fee 

waiver program. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

FINRA does not believe that the 

proposed rule change will result in any 

burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. The fee 

waiver program does not unfairly 

discriminate between or among 

professionals and members (or other 

end-users) in that the waiver would be 

available to any person that participates 

in a vendor’s free trial that includes 

real-time TRACE transaction data, 

subject to the conditions described 

above. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants or Others 

Written comments were neither 

solicited nor received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act 13 and paragraph (f)(2) of Rule 

19b–4 thereunder.14 At any time within 

60 days of the filing of the proposed rule 

change, the Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is 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 

to determine whether the proposed rule 

should be approved or disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s Internet 

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

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

FINRA–2014–043 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Brent J. Fields, Secretary, Securities 

and Exchange Commission, 100 F Street 

NE., Washington, DC 20549. 

All submissions should refer to File 

Number SR–FINRA–2014–043. 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 such 

filing also will be available for 

inspection and copying at the principal 

office of FINRA. 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–FINRA– 

2014–043 and should be submitted on 

or before November 6, 2014. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–24546 Filed 10–15–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73333; File Nos. SR–NYSE– 

2014–32 and SR–NYSEMKT–2014–56] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; NYSE MKT, 

Inc.; Order Approving Proposed Rule 

Changes Amending Exchange Rule 13 

To Make the Add Liquidity Only 

Modifier Available for Limit Orders, 

and Make the Day Time-In-Force 

Condition and Add Liquidity Only 

Modifier Available for Intermarket 

Sweep Orders 

October 9, 2014. 

I. Introduction 

On June 27, 2014, New York Stock 

Exchange LLC (‘‘NYSE’’) and NYSE 

MKT LLC (‘‘NYSE MKT’’) (each an 

‘‘Exchange’’ and together the 

‘‘Exchanges’’) each filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Act’’) 1 and Rule 19b–4 

thereunder,2 a proposed rule change to 

amend its Rule 13 to allow an Add 

Liquidity Only (‘‘ALO’’) modifier for 

day limit orders and to allow the day 

time-in-force condition and ALO 

modifier for Intermarket Sweep Orders 

(‘‘ISO’’).3 The proposed rule changes 

were published for comment in the 

Federal Register on July 11, 2014.4 On 

August 21, 2014, the Commission 

extended the time period in which to 

approve, disapprove, or institute 

proceedings to determine whether to 

disapprove the proposed rule changes to 

October 9, 2014.5 The Commission 

received three comment letters from two 


asabaliauskas on DSK5VPTVN1PROD with NOTICES