Federal Register / Vol. 79, No. 199 / Wednesday, October 15, 2014 / Notices 61911 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 71894 

(Apr. 7, 2014), 79 FR 20273 (‘‘Notice’’). 

4 15 U.S.C. 78s(b)(2). 

5Securities Exchange Act Release No. 72214 (May 

21, 2014), 79 FR 30672 (May 28, 2014). The 

Commission determined that it was appropriate to 

designate a longer period within which to take 

action on the proposed rule change so that it would 

have sufficient time to consider the proposed rule 

change. Accordingly, the Commission designated 

July 10, 2014 as the date by which it should 

approve, disapprove, or institute proceedings to 

determine whether to disapprove the proposed rule 

change. 

6Securities Exchange Act Release No. 72571 (July 

9, 2014), 79 FR 41330 (July 15, 2014). The 

Commission instituted proceedings to allow for 

additional analysis of the proposed rule change’s 

consistency with Section 6(b)(5) of the Act, which 

requires, among other things, that the rules of a 

national securities exchange be ‘‘designed to 

prevent fraudulent and manipulative acts and 

practices, to promote just and equitable principles 

of trade,’’ and ‘‘to protect investors and the public 

interest.’’ See id. 

7See Letter from Christopher S. Jones, Associate 

Professor, University of Southern California to 

Elizabeth M. Murphy, Secretary, Commission (Sept. 

16, 2014). 

8 15 U.S.C. 78s(b)(2). 

9See supra note 3 and accompanying text. 

10 15 U.S.C. 78s(b)(2). 

11 17 CFR 200.30–3(a)(12). 

Act and the rules and regulations 

promulgated thereunder, or (ii) a Series 

temporarily delays or ceases the sale of 

its Units because it is unable to invest 

amounts effectively in accordance with 

applicable investment objectives, 

policies and restrictions. 

2. An investor who purchases Units 

under the Exchange Option or Rollover 

Option will pay a lower sales charge 

than that which would be paid for the 

Units by a new investor. 

3. The prospectus of each Series 

offering exchanges or rollovers and any 

sales literature or advertising that 

mentions the existence of the Exchange 

Option or Rollover Option will disclose 

that the Exchange Option and the 

Rollover Option are subject to 

modification, termination or suspension 

without notice, except in certain limited 

cases. 

4. Any DSC imposed on a Series’ 

Units will comply with the 

requirements of subparagraphs (1), (2) 

and (3) of rule 6c–10(a) under the Act. 

5. Each Series offering Units subject to 

a DSC will include in its prospectus the 

disclosure required by Form N–1A 

relating to deferred sales charges 

(modified as appropriate to reflect the 

differences between UITs and open-end 

management investment companies) 

and a schedule setting forth the number 

and date of each Installment Payment. 

B. Net Worth Requirement 

Applicants will comply in all respects 

with the requirements of rule 14a–3 

under the Act, except that the Equity 

Series will not restrict their portfolio 

investments to ‘‘eligible trust 

securities.’’ 

For the Commission, by the Division of 

Investment Management, under delegated 

authority. 

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–24423 Filed 10–14–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73320; File No. SR– 

NYSEArca–2014–30] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Designation of a 

Longer Period for Commission Action 

on Proceedings To Determine Whether 

To Approve or Disapprove a Proposed 

Rule Change To List and Trade Shares 

of Hull Tactical US ETF Under NYSE 

Arca Equities Rule 8.600 

October 8, 2014. 

On March 24, 2014, NYSE Arca, Inc. 

(‘‘NYSE Arca’’) 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 

list and trade shares (‘‘Shares’’) of Hull 

Tactical US ETF under NYSE Arca 

Equities Rule 8.600. The proposed rule 

change was published for comment in 

the Federal Register on April 11, 2014.3

On May 21, 2014, pursuant to Section 

19(b)(2) of the Act,4 the Commission 

designated a longer period within which 

to either approve the proposed rule 

change, disapprove the proposed rule 

change, or institute proceedings to 

determine whether to disapprove the 

proposed rule change.5 On July 9, 2014, 

the Commission instituted proceedings 

to determine whether to approve or 

disapprove the proposed rule change.6

The Commission received one comment 

letter.7

Section 19(b)(2) of the Act 8 provides 

that, after initiating disapproval 

proceedings, the Commission shall issue 

an order approving or disapproving the 

proposed rule change not later than 180 

days after the date of publication of 

notice of filing of the proposed rule 

change. The Commission may extend 

the period for issuing an order 

approving or disapproving the proposed 

rule change, however, by not more than 

60 days if the Commission determines 

that a longer period is appropriate and 

publishes the reasons for such 

determination. The proposed rule 

change was published for notice and 

comment in the Federal Register on 

April 11, 2014.9 The 180th day after 

publication of the notice of the filing of 

the proposed rule change in the Federal 

Register is October 8, 2014, and the 

240th day after publication of the notice 

of the filing of the proposed rule change 

in the Federal Register is December 5, 

2014. 

The Commission finds it appropriate 

to designate a longer period within 

which to issue an order approving or 

disapproving the proposed rule change 

so that it has sufficient time to consider 

the proposed rule change and the 

comment letter received. 

Accordingly, the Commission 

pursuant to 19(b)(2) of the Act 10

designates December 5, 2014 as the date 

by which the Commission shall either 

approve or disapprove the proposed 

rule change (File No. SR–NYSEArca– 

2014–30). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–24421 Filed 10–14–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73317; File No. SR– 

ISEGemini–2014–26] 

Self-Regulatory Organizations; ISE 

Gemini Exchange, LLC; Notice of 

Filing and Immediate Effectiveness of 

a Proposed Rule Change To Amend 

Rule 723 To Add a New PIM ISO Order 

Type 

October 8, 2014. 

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

Securities Exchange Act of 1934 


tkelley on DSK3SPTVN1PROD with NOTICES
61912 Federal Register / Vol. 79, No. 199 / Wednesday, October 15, 2014 / Notices 

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

2 17 CFR 240.19b–4. 

3Under Rule 1900, a ‘‘Protected Quotation’’ 

includes a Protected Bid or Protected Offer. A 

‘‘Protected Bid’’ or ‘‘Protected Offer’’ means a Bid 

or Offer in an options series, respectively, that: (i) 

Is disseminated pursuant to the OPRA Plan; and (ii) 

is the Best Bid or Best Offer, respectively, displayed 

by an Eligible Exchange. ‘‘Bid’’ or ‘‘Offer’’ means 

the bid price or the offer price communicated by a 

member of an Eligible Exchange to any broker or 

dealer, or to any customer, at which it is willing to 

buy or sell, as either principal or agent, but shall 

not include indications of interest. The ‘‘OPRA 

Plan’’ means the plan filed with the SEC pursuant 

to Section 11Aa(1)(C)(iii) of the Act, approved by 

the SEC and declared effective as of January 22, 

1976, as from time to time amended. ‘‘Best Bid’’ and 

‘‘Best Offer’’ mean the highest priced Bid and the 

lowest priced Offer. Finally, ‘‘Eligible Exchange’’ 

means a national securities exchange registered 

with the SEC in accordance with Section 6(a) of the 

Act that: (i) Is a Participant Exchange in The 

Options Clearing Corporation (‘‘OCC’’) (as that term 

is defined in Section VII of the OCC by-laws); (ii) 

is a party to the OPRA Plan; and (iii) if the national 

securities exchange is not a party to the OPRA Plan, 

is a participant in another plan approved by the 

Commission providing for comparable tradethrough and locked and crossed market protection. 

4 15 U.S.C. 78f(b). 

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

6See NASDAQ OMX PHLX LLC (‘‘PHLX’’) Rule 

1080, Commentary .09. 

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

notice is hereby given that on October 

3, 2014 the ISE Gemini Exchange, LLC 

‘‘Exchange’’ or ‘‘ISE Gemini’’) 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 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 

ISE Gemini proposes to amend its 

rules to add a new PIM ISO order type. 

The text of the proposed rule change is 

available on the Exchange’s Web site 

(http://www.ise.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 these statements may be examined at 

the places specified in Item IV below. 

The self-regulatory organization 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, the Proposed Rule 

Change 

1. Purpose 

The purpose of this proposed rule 

change is to amend the Exchange’s rules 

to add a new PIM ISO order type. 

The Price Improvement Mechanism 

(‘‘PIM’’) is a process that allows 

Electronic Access Members (‘‘EAM’’) to 

provide price improvement 

opportunities for a transaction wherein 

the Member seeks to execute an agency 

order as principal or execute an agency 

order against a solicited order (a 

‘‘Crossing Transaction’’). A Crossing 

Transaction is comprised of the order 

the EAM represents as agent (the 

‘‘Agency Order’’) and a counter-side 

order for the full size of the Agency 

Order (the ‘‘Counter-Side Order’’). The 

Counter-Side Order may represent 

interest for the Member’s own account, 

or interest the Member has solicited 

from one or more other parties, or a 

combination of both. A Crossing 

Transaction must be entered only at a 

price that is equal to or better than the 

national best bid or offer (‘‘NBBO’’) and 

better than the limit order or quote on 

the ISE Gemini orderbook on the same 

side of the Agency Order. 

An intermarket sweep order (‘‘ISO’’) 

is defined in Rule 1900(h) as a limit 

order that is designated as an ISO in the 

manner prescribed by the Exchange and 

is executed within the system by 

Members at multiple price levels 

without respect to Protected Quotations 

of other Eligible Exchanges as defined in 

Rule 1900.3 ISOs are immediately 

executable within the Exchange’s 

options trading system or cancelled, and 

shall not be eligible for routing as set 

out in Rule 1900. Simultaneously with 

the routing of an ISO to the Exchange’s 

options trading system, one or more 

additional limit orders, as necessary, are 

routed by the entering party to execute 

against the full displayed size of any 

Protected Bid or Protected Offer in the 

case of a limit order to sell or buy with 

a price that is superior to the limit price 

of the limit order identified as an ISO. 

These additional routed orders must be 

identified as ISOs. 

The Exchange proposes to implement 

a PIM ISO order type (‘‘PIM ISO’’) that 

will allow the submission of an ISO into 

the PIM. Specifically, a PIM ISO is the 

transmission of two orders for crossing 

pursuant to Rule 723 without regard for 

better priced Protected Bids or Protected 

Offers because the Member transmitting 

the PIM ISO to the Exchange has, 

simultaneously with the routing of the 

PIM ISO, routed one or more ISOs, as 

necessary, to execute against the full 

displayed size of any Protected Bid or 

Protected Offer that is superior to the 

starting PIM auction price and has 

swept all interest in the Exchange’s 

book priced better than the proposed 

auction starting price. Any execution(s) 

resulting from such sweeps shall accrue 

to the PIM order, meaning that any 

execution(s) obtained from the away 

side will be given to the agency side of 

the order. 

The Exchange will accept a PIM ISO 

provided the order adheres to the 

current PIM order acceptance 

requirements outlined above, but 

without regard to the NBBO. The 

Exchange will execute the PIM ISO in 

the same manner that it currently 

executes PIM orders, except that it will 

not protect prices away. Instead, order 

flow providers will bear the 

responsibility to clear all better priced 

interest away simultaneously with 

submitting the PIM ISO order. There is 

no other impact to PIM functionality. 

Specifically, liquidity present at the end 

of the PIM auction will continue to be 

included in the PIM auction as it is with 

PIM orders not marked as ISOs. 

The Exchange will announce the 

implementation of this order type in an 

information circular. 

2. Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Securities Exchange Act of 1934 

(the ‘‘Act’’) 4 in general, and furthers the 

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

in particular, in that it is designed to 

promote just and equitable principles of 

trade, to remove impediments to and 

perfect the mechanism for a free and 

open market and a national market 

system, and, in general, to protect 

investors and the public interest. The 

proposed rule change promotes just and 

equitable principles or trade and 

removes impediments to a free and open 

market in that it promotes competition, 

as described below. Specifically, the 

proposal allows the Exchange to offer its 

members an order type that is already 

offered by another exchange.6 In 

addition, the proposal benefits traders 

and investors because it adds a new 

order type for seeking price 

improvement through the PIM. Finally, 

the proposal does not unfairly 

discriminate among members because 

all Members are eligible to submit a PIM 

ISO order. 


tkelley on DSK3SPTVN1PROD with NOTICES
Federal Register / Vol. 79, No. 199 / Wednesday, October 15, 2014 / Notices 61913 

7 Id. 

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 17 CFR 240.19b–4. 

3 17 CFR 240.19b–4(f)(6). 

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’s proposal to adopt a PIM ISO 

order type is pro-competitive because it 

will enable the Exchange to provide 

market participants with an additional 

method of seeking price improvement 

through the PIM. The proposed rule 

change will also allow the Exchange to 

compete with other markets that already 

allow an ISO order type in their price 

improvement mechanisms.7

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants or Others 

The Exchange has not solicited, and 

does not intend to solicit, comments on 

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– 

ISEGemini–2014–26 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–ISEGemini-2014–26. 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– 

ISEGemini-2014–26 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. 2014–24418 Filed 10–14–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73316; File No. SR–FINRA– 

2014–040] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Revise the Operative 

Date for Deletion of Rule 7740 

Pursuant to SR–FINRA–2014–032 

October 7, 2014. 

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

Securities Exchange Act of 1934 

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

notice is hereby given that on 

September 25, 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 and II below, which Items 

have been prepared by FINRA. FINRA 

has designated the proposed rule change 

as constituting a ‘‘non-controversial’’ 

rule change under paragraph (f)(6) of 

Rule 19b–4 under the Act,3 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 revise the 

operative date for the deletion of Rule 

7740 (Historical Research and 

Administrative Reports) pursuant to 

SR–FINRA–2014–032. The proposed 

rule change would not make any 

changes to the text of FINRA rules. 

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 


tkelley on DSK3SPTVN1PROD with NOTICES