61922 Federal Register / Vol. 79, No. 199 / Wednesday, October 15, 2014 / Notices 

8 15 U.S.C. 78s(b)(3)(A). 

9 17 CFR 240.19b–4(f)(6). 

10 In addition, Rule 19b–4(f)(6)(iii) requires the 

Exchange to give the Commission written notice of 

the Exchange’s intent to file the proposed rule 

change, along with a brief description and text of 

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. 

11 17 CFR 240.19b–4(f)(6)(iii). 

12 15 U.S.C. 78s(b)(3)(C). 13 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

this proposed rule change. The 

Exchange has not received any 

unsolicited written comments from 

members or other interested parties. 

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 8 and Rule 19b–4(f)(6) 9

thereunder because the proposal does 

not: (i) Significantly affect the 

protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) by its 

terms, 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.10

A proposed rule change filed under 

Rule 19b–4(f)(6) normally may not 

become operative prior to 30 days after 

the date of filing. However, Rule 19b– 

4(f)(6)(iii) 11 permits the Commission to 

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest. 

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.12

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– 

ISE–2014–49 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–ISE–2014–49. 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 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–ISE– 

2014–49 and should be submitted on or 

before November 5, 2014. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–24419 Filed 10–14–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73321; File No. SR– 

NYSEArca–2014–113] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Reflecting Changes in the 

Concentration Policies of ARK 

Innovation ETF and ARK Genomic 

Revolution ETF as Well as a Change in 

the Name of the ARK Genomic 

Revolution ETF to the ARK Genomic 

Revolution Multi-Sector ETF 

October 8, 2014. 

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

Securities Exchange Act of 1934 

(‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that on 

September 25, 2014, NYSE Arca, Inc. 

(‘‘Exchange’’ or ‘‘NYSE Arca’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change as described in 

Items I and II below, which Items have 

been prepared by the Exchange. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to reflect 

changes in the concentration policies of 

ARK Innovation ETF and ARK Genomic 

Revolution ETF, as well as a change in 

the name of the ARK Genomic 

Revolution ETF to the ARK Genomic 

Revolution Multi-Sector ETF. The text 

of the proposed rule change is available 

on the Exchange’s Web site at 

www.nyse.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 

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. 


tkelley on DSK3SPTVN1PROD with NOTICES
Federal Register / Vol. 79, No. 199 / Wednesday, October 15, 2014 / Notices 61923 

4See Securities Exchange Act Release No. 72641 

(July 18, 2014), 79 FR 43108 (July 24, 2014) (SR– 

NYSEArca–2014–64) (order approving listing and 

trading on the Exchange of the ARK Innovation 

ETF, ARK Genomic Revolution ETF, ARK Industrial 

Innovation ETF, and ARK Web x.0 ETF under 

NYSE Arca Equities Rule 8.600) (‘‘Prior Order’’). 

See also Securities Exchange Act Release No. 72314 

(June 4, 2014), 79 FR 33229 (June 10, 2014) (SR– 

NYSEArca–2014–64) (‘‘Prior Notice,’’ and together 

with the Prior Order, the ‘‘Prior Release’’). 

5The Trust is registered under the Investment 

Company Act of 1940 (15 U.S.C. 80a–1) (‘‘1940 

Act’’). On September 11, 2014, the Trust filed with 

the Commission an amendment to its registration 

statement on Form N–1A under the Securities Act 

of 1933 (15 U.S.C. 77a) (‘‘Securities Act’’), and 

under the 1940 Act relating to the Funds (File Nos. 

333–191019 and 811–22883) (‘‘Registration 

Statement’’). The description of the operation of the 

Trust and the Funds herein is based, in part, on the 

Registration Statement. In addition, the 

Commission has issued an order granting certain 

exemptive relief to the Trust under the1940 Act. 

See Investment Company Act Release No. 31009 

(April 7, 2014) (File No. 812–14172) (‘‘Exemptive 

Order’’). 

6The changes described herein will be filed with 

the Commission in an amendment to the Funds’ 

Registration Statement. See note 5, supra. The 

Adviser represents that it will manage the Funds in 

the manner described in the Prior Release, and will 

not implement the changes described herein until 

the instant proposed rule change is operative. 

7The name of the ARK Genomic Revolution 

Multi-Sector ETF has been changed from the ARK 

Genomic Revolution ETF. 

8The term ‘‘under normal circumstances’’ 

includes, but is not limited to, the absence of 

extreme volatility or trading halts in the equity 

markets or the financial markets generally; 

operational issues causing dissemination of 

inaccurate market information; or force majeure 

type events such as systems failure, natural or manmade disaster, act of God, armed conflict, act of 

terrorism, riot or labor disruption or any similar 

intervening circumstance. 

9As described in the Prior Release, companies 

relevant to this theme are those that are focused on 

and are expected to benefit from extending and 

enhancing the quality of human and other life by 

incorporating technological and scientific 

developments, improvements and advancements in 

genetics into their business, such as by offering new 

products or services that rely on genetic 

sequencing, analysis, synthesis or instrumentation. 

These companies may include ones that develop, 

produce, manufacture or significantly rely on bionic 

devices, bio-inspired computing, bioinformatics, 

molecular medicine, and agricultural biology. 

10See note 8, supra. 

11As described in the Prior Release, companies 

relevant to this theme are those that rely on or 

benefit from the development of new products or 

services, technological improvements and 

advancements in scientific research relating to the 

areas of genomics, industrial innovation or the 

increased use of shared technology, infrastructure, 

and services. 

12The diversification standard is set forth in 

Section 5(b)(1) of the 1940 Act. 

13See Form N–1A, Item 9. The Commission has 

taken the position that a fund is concentrated if it 

invests more than 25% of the value of its total 

assets in any one industry. See, e.g., Investment 

Company Act Release No. 9011 (October 30, 1975), 

40 FR 54241 (November 21, 1975). 

14See note 12, supra. 

15See note 13, supra. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Commission has approved listing 

and trading on the Exchange of shares 

(‘‘Shares’’) of the ARK Innovation ETF 

and ARK Genomic Revolution ETF, 

(each, a ‘‘Fund’’ and collectively, the 

‘‘Funds’’) under NYSE Arca Equities 

Rule 8.600, which governs the listing 

and trading of Managed Fund Shares.4

Shares of the Funds have not 

commenced trading on the Exchange. 

The Funds are series of the ARK ETF 

Trust (‘‘Trust’’). The Shares are offered 

by the Trust, which is registered with 

the Commission as an open-end 

management investment company.5 The 

investment adviser to the Funds is ARK 

Investment Management LLC 

(‘‘Adviser’’). 

In this proposed rule change, the 

Exchange proposes to reflect a change to 

the Funds’ concentration policies as 

well as the descriptions of the health 

care sector, which the Adviser will 

utilize to implement each Fund’s 

investment objective, as described 

below.6

ARK Genomic Revolution Multi-Sector 

ETF 

As described in the Prior Release, the 

investment objective of the ARK 

Genomic Revolution Multi-Sector ETF 7

is long-term growth of capital. The Fund 

will invest under normal 

circumstances 8 primarily (at least 80% 

of its assets) in domestic and foreign 

equity securities of companies that are 

relevant to the Fund’s investment theme 

of genomics.9 As stated in the Prior 

Release, the Fund may invest its 

remaining assets in other securities and 

financial instruments, as described in 

the Prior Release. 

The Prior Release stated that the Fund 

will be concentrated in issuers in any 

industry or group of industries in the 

health care sector. The Adviser wishes 

to supplement the description of the 

Fund’s concentration policy to state that 

the Fund will be concentrated in issuers 

in any industry or group of industries in 

the health care sector, including, in 

particular, issuers having their principal 

business activities in the biotechnology 

industry. 

The Prior Release stated that the 

issuers in the health care sector include 

manufacturers and distributors of health 

care equipment and supplies, owners 

and operators of health care facilities, 

health maintenance organizations and 

managed health care plans, health care 

providers and issuers that provide 

services to health care providers. The 

Adviser wishes to revise the description 

of the health care sector to state that, 

while the health care sector includes the 

biotechnology industry, other industries 

in the health care sector include 

medical laboratories and research and 

drug manufacturers. 

ARK Innovation ETF 

As described in the Prior Release, the 

ARK Innovation ETF’s investment 

objective is long-term growth of capital. 

The Fund will invest under normal 

circumstances 10 primarily (at least 65% 

of its assets) in domestic and foreign 

equity securities of companies that are 

relevant to the Fund’s investment theme 

of disruptive innovation.11 As stated in 

the Prior Release, the Fund may invest 

its remaining assets in other securities 

and financial instruments, as described 

in the Prior Release. 

The Prior Release stated that the Fund 

will be concentrated in issuers in any 

industry or group of industries in the 

industrials and information technology 

sectors. The Adviser wishes to revise 

the description of the Fund’s 

concentration policy to state that it will 

not be concentrated in any industry. 

Other Investments 

The Prior Release stated that each 

Fund will be classified as a ‘‘nondiversified’’ investment company under 

the 1940 Act 12 and therefore may 

concentrate its investments in any 

particular industry or group of 

industries, such that: (i) ARK Genomic 

Revolution Multi-Sector ETF will 

concentrate in securities of issuers 

having their principal business 

activities in any industry or group of 

industries in the health care sector; and 

(ii) ARK Innovation ETF will 

concentrate in securities of issuers 

having their principal business 

activities in any industry or group of 

industries in the health care sector, the 

industrials sector, the information 

technology sector, or the 

telecommunications services sector.13

The Adviser wishes to revise the 

description of the Funds’ concentration 

to state that each Fund will be classified 

as a ‘‘non-diversified’’ investment 

company under the 1940 Act 14 and that 

neither of the Funds will be 

concentrated in any industry, except 

that ARK Genomic Revolution MultiSector ETF will concentrate in securities 

of issuers having their principal 

business activities in any industry or 

group of industries in the health care 

sector, including issuers having their 

principal business activities in the 

biotechnology industry.15

The Adviser represents that there is 

no change to the Funds’ investment 


tkelley on DSK3SPTVN1PROD with NOTICES
61924 Federal Register / Vol. 79, No. 199 / Wednesday, October 15, 2014 / Notices 

16 15 U.S.C. 78f(b)(5). 

17 15 U.S.C. 78s(b)(3)(A). 

18 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. 19 17 CFR 200.30–3(a)(12). 

objectives. The Shares will conform to 

the initial and continued listing criteria 

under NYSE Arca Equities Rule 8.600. 

Except for the changes noted above, 

all other facts presented and 

representations made in the Prior 

Release remain unchanged. 

All terms referenced but not defined 

herein are defined in the Prior Release. 

2. Statutory Basis 

The basis under the Act for this 

proposed rule change is the requirement 

under Section 6(b)(5) 16 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 is designed to 

prevent fraudulent and manipulative 

acts and practices, and is designed to 

promote just and equitable principles of 

trade and to protect investors and the 

public interest, in that the Adviser 

represents that there are no changes to 

the Funds’ investment objectives and 

the proposed changes will clarify the 

Funds’ concentration policies and the 

descriptions of the health care sector. 

There are no changes to the Funds’ 

statements regarding how their assets 

primarily will be invested in normal 

circumstances and how they may invest 

remaining assets. 

The Exchange believes that the 

proposed rule change is designed to 

prevent fraudulent and manipulative 

acts and practices, and is designed to 

promote just and equitable principles of 

trade and to protect investors and the 

public interest, in that the change in the 

name of the ARK Genomic Revolution 

Multi-Sector ETF is designed to clarify 

that such Fund invests, on a multisector basis, in genomic revolution 

companies. 

The proposed rule change is designed 

to perfect the mechanism of a free and 

open market and, in general, to protect 

investors and the public interest in that 

the Shares will be listed and traded on 

the Exchange pursuant to the initial and 

continued listing requirements in NYSE 

Arca Equities Rule 8.600. The Adviser 

represents that there is no change to the 

Funds’ investment objectives. Except for 

the changes noted above, all other 

representations made in the Prior 

Release remain unchanged. 

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 

Exchange notes that the proposed rule 

change will facilitate the listing and 

trading of additional types of activelymanaged exchange-traded products that 

hold equity securities and will enhance 

competition among market participants, 

to the benefit of investors and the 

marketplace. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

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 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 17 and Rule 19b–4(f)(6) 

thereunder.18

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-2014–113 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–2014–113. 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– 

NYSEArca-2014–113 and should be 

submitted on or before November 5, 

2014. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.19

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–24422 Filed 10–14–14; 8:45 am] 

BILLING CODE 8011–01–P 


tkelley on DSK3SPTVN1PROD with NOTICES