Federal Register / Vol. 79, No. 213 / Tuesday, November 4, 2014 / Notices 65437 

9See Notice at 60555. 

10 15 U.S.C. 78k–1. 

11 17 CFR 200.30–3(a)(27). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4Commentary .02 to NYSE Arca Equities Rule 

8.200 applies to Trust Issued Receipts that invest 

in ‘‘Financial Instruments.’’ The term ‘‘Financial 

Instruments,’’ as defined in Commentary .02(b)(4) to 

NYSE Arca Equities Rule 8.200, means any 

combination of investments, including cash; 

securities; options on securities and indices; futures 

contracts; options on futures contracts; forward 

contracts; equity caps, collars and floors; and swap 

agreements. 

5The Trust submitted a registration statement 

with respect to the Fund on Form S–1 under the 

Securities Act of 1933 (‘‘1933 Act’’) on October 7, 

2014 (File No. 333–199190) (the ‘‘Registration 

Statement’’). The description of the Fund and the 

Shares contained herein are based, in part, on the 

Registration Statement. 

6See, e.g., Securities Exchange Act Release No. 

58161 (July 15, 2008), 73 FR 42380 (July 21, 2008) 

(SR–Amex–2008–39). 

7See, e.g., Securities Exchange Act Release No. 

58163 (July 15, 2008), 73 FR 42391 (July 21, 2008) 

(SR–NYSEArca–2008–73). 

8See, e.g., Securities Exchange Act Release No. 

70209 (August 15, 2013), 78 FR 51269 (June 24, 

2013) (SR–NYSEArca–2013–60); Securities 

Exchange Act Release No. 58457 (September 3, 

2008), 73 FR 52711 (September 10, 2008) (SR– 

NYSEArca–2008–91). 

a new fee should provide the 

Participants more flexibility to change 

fees. Current voting requirements for 

reducing or eliminating an existing fee 

or for establishing a new fee vary widely 

under the CTA and CQ Plans.9 The 

proposed Amendments harmonize 

requirements under the Plans for 

effecting fee-related changes. As a result 

of the proposed Amendments, both 

Plans would require a two-thirds vote to 

establish or increase a fee or to 

eliminate or reduce a fee. These changes 

would provide Participants with greater 

flexibility with respect to the Plans’ fee 

schedule. The changes would also 

harmonize voting requirements under 

the CTA Plan and the CQ Plan with 

corresponding requirements under the 

OPRA Plan. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 11A of the Act,10 and the rules 

thereunder, that the proposed 

Amendments to the CTA and CQ Plans 

are approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Kevin M. O’Neil, 

Deputy Secretary. 

[FR Doc. 2014–26119 Filed 11–3–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Sunshine Act Meeting 

Notice is hereby given, pursuant to 

the provisions of the Government in the 

Sunshine Act, Public Law 94–409, that 

the Securities and Exchange 

Commission will hold a Closed Meeting 

on Thursday, November 6, 2014 at 2:00 

p.m. 

Commissioners, Counsel to the 

Commissioners, the Secretary to the 

Commission, and recording secretaries 

will attend the Closed Meeting. Certain 

staff members who have an interest in 

the matters also may be present. 

The General Counsel of the 

Commission, or her designee, has 

certified that, in her opinion, one or 

more of the exemptions set forth in 5 

U.S.C. 552b(c)(3), (5), (7), 9(B) and (10) 

and 17 CFR 200.402(a)(3), (5), (7), 9(ii) 

and (10), permit consideration of the 

scheduled matter at the Closed Meeting. 

Commissioner Piwowar, as duty 

officer, voted to consider the items 

listed for the Closed Meeting in closed 

session. 

The subject matter of the Closed 

Meeting will be: 

Institution and settlement of 

injunctive actions; 

Institution settlement of 

administrative proceedings; 

Adjudicatory matter; 

Other matters relating to enforcement 

proceedings. 

At times, changes in Commission 

priorities require alterations in the 

scheduling of meeting items. 

For further information and to 

ascertain what, if any, matters have been 

added, deleted or postponed, please 

contact the Office of the Secretary at 

(202) 551–5400. 

Dated: October 30, 2014. 

Brent J. Fields, 

Secretary. 

[FR Doc. 2014–26235 Filed 10–31–14; 11:15 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73464; File No. SR– 

NYSEArca–2014–120] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing of Proposed 

Rule Change Relating to Listing and 

Trading Shares of the Sit Rising Rate 

Fund Under NYSE Arca Equities Rule 

8.200 

October 29, 2014. 

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

Securities Exchange Act of 1934 (the 

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

notice is hereby given that, on October 

16, 2014, 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, II, and III below, which Items 

have been prepared by the selfregulatory 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 Sit Rising Rate Fund 

under NYSE Arca Equities Rule 8.200. 

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. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

NYSE Arca Equities Rule 8.200, 

Commentary .02 permits the trading of 

Trust Issued Receipts (‘‘TIRs’’) either by 

listing or pursuant to unlisted trading 

privileges (‘‘UTP’’).4 The Exchange 

proposes to list and trade shares 

(‘‘Shares’’) of the Sit Rising Rate Fund 

(‘‘Fund’’) pursuant to NYSE Arca 

Equities Rule 8.200. The Fund is a series 

of the ETF Managers Group Commodity 

Trust I (the ‘‘Trust’’), a Delaware 

statutory trust.5

The Exchange notes that the 

Commission has previously approved 

the listing and trading of other issues of 

TIRs on the American Stock Exchange 

LLC,6 trading on NYSE Arca pursuant to 

UTP,7 and listing on NYSE Arca.8 In 


rmajette on DSK3VPTVN1PROD with NOTICES
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9See, e.g., Securities Exchange Act Release Nos. 

56131 (July 25, 2007), 77 FR 42212 (August 1, 2007) 

(SR–NYSEArca–2007–57) (order approving listing 

and trading on NYSE Arca of shares of eight issues 

of Commodity Trust Shares); 57456 (March 7, 

2008), 73 FR 13599 (March 13, 2008) (SR– 

NYSEArca–2007–91) (order granting accelerated 

approval for NYSE Arca listing and trading of 

shares of the iShares GS Commodity Trusts); 59781 

(April 17, 2009), 74 FR 18771 (April 24, 2009) (SR– 

NYSEArca–2009–28) (order granting accelerated 

approval for NYSE Arca listing and trading of 

shares of the ETFS Silver Trust); 59895 (May 8, 

2009), 74 FR 22993 (May 15, 2009) (SR–NYSEArca– 

2009–40) (order granting accelerated approval for 

NYSE Arca listing the ETFS Gold Trust); 62527 

(July 19, 2010), 75 FR 43606 (July 26, 2010) (SR– 

NYSEArca–2010–44) (order approving listing and 

trading on NYSE Arca of shares of the United States 

Commodity Index Fund). 

10The Sponsor is not a broker-dealer or affiliated 

with a broker-dealer. 

addition, the Commission has approved 

the listing and trading of other 

exchange-traded fund-like products 

linked to the performance of underlying 

currencies and commodities.9

According to the Registration 

Statement, the Fund’s sponsor and 

investment manager is ETF Managers 

Capital LLC (‘‘ETFMC’’ or the 

‘‘Sponsor’’), a limited liability company 

that is a commodity pool operator 

(‘‘CPO’’) that is registered with the 

Commodity Futures Trading 

Commission (‘‘CFTC’’) 10 and is a 

member of the National Futures 

Association (‘‘NFA’’). U.S. Bancorp 

Fund Services will be the transfer agent 

and for the Shares and administrator for 

the Fund. Esposito Securities LLC (the 

‘‘Distributor’’) will provide statutory 

and wholesaling distribution services. 

Fund’s Investment Objective and 

Strategy 

The Fund’s investment objective will 

be to profit from rising interest rates by 

tracking the performance of a portfolio 

(the ‘‘Benchmark Portfolio’’) consisting 

of exchange traded futures contracts and 

options on futures on 2, 5 and 10-year 

U.S. Treasury securities (‘‘Treasury 

Instruments’’) weighted to achieve a 

targeted negative 10-year average 

effective portfolio duration (the 

‘‘Benchmark Component Instruments’’). 

The Fund will seek to achieve its 

investment objective by investing in the 

Benchmark Component Instruments 

currently constituting the Benchmark 

Portfolio. The Benchmark Portfolio will 

be maintained by Sit Fixed Income 

Advisors II, LLC (‘‘Sit’’) and will be 

rebalanced, reconstituted, or both, 

monthly, typically on the 15th of each 

month and on the next business day if 

the 15th is a holiday, weekend, or other 

day on which the national exchanges 

are closed, to maintain a negative 10- 

year average effective duration. The 

Benchmark Portfolio will maintain a net 

short position in Treasury Instruments. 

There will normally be substantially 

more net short exposure than net long 

exposure. The Fund will not use futures 

contracts or options to obtain leveraged 

investment results. The Benchmark 

Component Instruments constituting the 

Benchmark Portfolio and anticipated 

rebalancing dates, as well as the daily 

holdings of the Fund, will be available 

on the Fund’s Web site at 

www.risingratefund.com. 

The weightings of the Treasury 

Instruments constituting the Benchmark 

Portfolio and the Fund will be based on 

each maturity’s duration contribution. 

Longer duration treasuries will account 

for a more meaningful portion of the 

Fund’s price sensitivity to changes in 

interest rates. As of October 9, 2014, the 

Benchmark Portfolio consisted of: 

Treasury instrument 

(%) % of Portfolio 

2 Year U.S. Treasury Futures .................................. 45 

5 Year U.S. Treasury Futures .................................. 30 

5 Year U.S. Treasury Call 

Options .............................. 15 

10 Year U.S. Treasury Put 

Options .............................. 10 

100 

The relative weightings of the 

Benchmark Component Instruments 

will be shifted between maturities only 

when there are material changes in the 

shape of the yield curve, for example, if 

the Federal Reserve began raising short 

term interest rates more than long term 

interest rates. In such an instance, Sit, 

which maintains the Benchmark 

Portfolio, will increase the weightings of 

the 2-year and reduce the weighting in 

the 10-year maturity Treasury 

Instruments. Conversely, Sit will do the 

opposite if the Federal Reserve began 

raising long term interest rates more 

than short term interest rates. 

Reconstitution and rebalancing each 

will occur monthly, on the 15th, unless 

there are radical changes in the yield 

curve such that effective duration is 

outside of a range from negative nine to 

negative 11-year average effective 

duration, in which case Sit will adjust 

the maturities of the Treasury 

Instruments before the next expected 

monthly reconstitution. 

The Benchmark Portfolio will be 

invested in Benchmark Component 

Instruments and rebalanced, as noted 

above, to maintain a negative average 

effective portfolio duration of 

approximately 10 years. Duration is a 

measure of estimated price sensitivity 

relative to changes in interest rates. 

Portfolios with longer durations are 

typically more sensitive to changes in 

interest rates. For example, if interest 

rates rise by 1%, the market value of a 

security with an effective duration of 5 

years would decrease by 5%, with all 

other factors being constant, and 

likewise the market value of a security 

with an effective duration of negative 5 

years would increase by 5%, with all 

other factors being constant. Duration 

estimates are based on certain 

assumptions by Sit and are subject to a 

number of limitations. Duration is a 

more accurate estimate of price 

sensitivity provided interest rate 

changes are small and occur equally in 

short-term and long-term securities. 

Investments in debt securities typically 

decrease in value when interest rates 

rise. The risk is usually greater for 

longer-term debt securities. 

The Fund will incur certain expenses 

in connection with its operations. The 

Fund will hold cash or cash equivalents 

such as U.S. Treasuries or other high 

credit quality, short-term fixed-income 

or similar securities (such as shares of 

money market funds and collateralized 

repurchase agreements) for direct 

investment or as collateral for the 

Treasury Instruments and for other 

liquidity purposes and to meet 

redemptions that may be necessary on 

an ongoing basis. These expenses and 

income from the cash and cash 

equivalent holdings may cause 

imperfect correlation between changes 

in the Fund’s NAV and changes in the 

Benchmark Portfolio, because the 

Benchmark Portfolio does not reflect 

expenses or income. 

Net Asset Value 

According to the Registration 

Statement, the net asset value (‘‘NAV’’) 

of the Fund will be calculated by taking 

the current market value of its total 

assets, subtracting any liabilities, and 

dividing that total by the total number 

of outstanding shares. 

The Administrator will calculate the 

NAV daily and the NAV will be released 

after 4:00 p.m. Eastern Time (‘‘E.T.’’), 

the end of the Core Trading Session on 

the Exchange. For purposes of 

calculating NAV, the Administrator will 

use the closing price of the Treasury 

Instruments on the U.S. exchanges on 

which the Treasury Instruments are 

traded (primarily on the exchanges 

within the Chicago Mercantile Exchange 

Group of exchanges (collectively, the 

‘‘CME’’)). 

Reverse repurchase agreements will 

generally be valued at bid prices 

received from independent pricing 

services as of the announced closing 

time for trading in such instruments. 


rmajette on DSK3VPTVN1PROD with NOTICES
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11Authorized Purchasers will be the only persons 

that may place orders to create and redeem baskets. 

Authorized Purchasers must be (1) registered 

broker-dealers or other securities market 

participants, and (2) have an account with the 

Depository Trust Company. To become an 

Authorized Purchaser, a person must enter into an 

Authorized Purchaser Agreement with ETFMC. The 

Authorized Purchaser Agreement provides the 

procedures for the creation and redemption of 

baskets and for the delivery of the Treasuries and 

any cash required for such creation and 

redemptions. The Authorized Purchaser Agreement 

and the related procedures attached thereto may be 

amended by the Fund, without the consent of any 

limited partner or shareholder or Authorized 

Purchaser. 

Intraday Indicative Value (‘‘IIV’’) 

According to the Registration 

Statement, the Exchange will calculate 

and disseminate throughout the core 

trading session on each trading day an 

updated IIV for the Fund. The IIV will 

be calculated by using the Fund’s prior 

day’s closing NAV per share as a base 

and updating that value throughout the 

trading day to reflect changes in the 

most recently reported trade price for 

the Benchmark Component Instruments. 

The net asset value of the Fund’s cash 

and cash equivalent holdings, on the 

other hand, will not be updated 

throughout the day. 

The IIV will be calculated on a per 

share basis every 15 seconds on a 

delayed basis during the Core Trading 

Session (9:30 a.m. E.T. to 4:00 p.m. E.T.) 

on the Exchange. The normal trading 

hours of the CME are 10:00 a.m. to 2:30 

p.m. E.T. This means that there is a gap 

in time at the beginning and the end of 

each day during which the Fund’s 

Shares are traded on the Exchange but 

real-time CME trading prices for 

contracts traded on the CME are 

unavailable. During such gaps in time 

the IIV will be calculated based on the 

end of day price of such contracts from 

the CME’s immediately preceding 

trading session. 

According to the Registration 

Statement, the Fund will provide the 

independent third party calculator with 

information to calculate the IIV, but the 

Fund will not be involved in the actual 

calculation of the IIV and is not 

responsible for the calculation or 

dissemination of the IIV. The Fund 

makes no warranty as to the accuracy of 

the IIV. The IIV should not be viewed 

as a ‘‘real-time’’ update of NAV because 

the IIV is not calculated in the same 

manner as NAV, which will be 

computed once per day. 

The Exchange disseminates the IIV 

through the facilities of CTA/CQ High 

Speed Lines. In addition, the IIV is 

published on the NYSE Arca’s Web site 

and is available through on-line 

information services such as Bloomberg 

and Reuters. 

According to the Registration 

Statement, dissemination of the IIV 

provides additional information that is 

not otherwise available to the public 

and is useful to investors and market 

professionals in connection with the 

trading of the Fund Shares on the 

Exchange. Investors and market 

professionals are able throughout the 

trading day to compare the market price 

of the Fund and the IIV. If the market 

price of the Fund Shares diverges 

significantly from the IIV, market 

professionals will have an incentive to 

execute arbitrage trades. Such arbitrage 

trades can tighten the tracking between 

the market price of the Fund and the IIV 

and thus can be beneficial to all market 

participants. 

The IIV should not be viewed as an 

actual real time update of the NAV, 

because the NAV is calculated only 

once at the end of each trading day 

based upon the relevant end of day 

values of the Fund’s investments. The 

IIV also should not be viewed as a 

precise value of the Shares. 

In addition to the IIV, the value of the 

Benchmark Portfolio (excluding the 

cash and cash equivalent holdings) will 

be calculated every 15 seconds on a 

delayed basis and disseminated through 

similar means as the IIV. 

Creation and Redemption of Shares 

The Fund will offer and issue Shares 

only in aggregations of a specified 

number of Shares (each, a ‘‘Creation 

Unit’’). Creation Unit sizes will be 

25,000 Shares per Creation Unit. The 

Creation Unit size for a Fund may 

change. The Fund will create and 

redeem Shares from time to time in one 

or more ‘‘Creation Baskets’’ or 

‘‘Redemption Baskets’’ as described 

below. The creation and redemption of 

baskets will only made in exchange for 

delivery to the Fund or the distribution 

by the Fund of the amount of Treasuries 

and any cash represented by the baskets 

being created or redeemed, the amount 

of which is based on the combined NAV 

of the number of shares included in the 

baskets being created or redeemed 

determined as of 4:00 p.m. E.T. on the 

day the order to create or redeem 

baskets is properly received. 

On any business day other than a day 

when any of the NYSE Arca, the CME 

or the New York Stock Exchange are 

closed for regular trading (‘‘Business 

Day’’), an Authorized Purchaser 11 may 

place an order with the Distributor to 

create one or more baskets. Purchase 

orders must be placed by 12:00 p.m. 

E.T. or the close of regular trading on 

the NYSE Arca, whichever is earlier. 

The day on which the Distributor 

receives a valid purchase order is 

referred to as the purchase order date. 

By placing a purchase order, an 

Authorized Purchaser agrees to deposit 

Treasuries, cash or a combination of 

Treasuries and cash, as described below. 

Prior to the delivery of baskets for a 

purchase order, the Authorized 

Purchaser must also have wired to the 

Custodian the non-refundable 

transaction fee due for the purchase 

order. 

The total deposit required to create 

each basket (‘‘Creation Basket Deposit’’) 

is the amount of Treasuries and/or cash 

that is in the same proportion to the 

total assets of the Fund (net of estimated 

accrued but unpaid fees, expenses and 

other liabilities) on the purchase order 

date as the number of shares to be 

created under the purchase order is in 

proportion to the total number of shares 

outstanding on the purchase order 

dates. ETFMC determines, directly in its 

sole discretion or in consultation with 

the Administrator, the requirements for 

Treasuries and the amount of cash, 

including the maximum permitted 

remaining maturity of a Treasury and 

proportions of Treasury and cash that 

may be included in deposits to create 

baskets. The Distributor will publish 

such requirements at the beginning of 

each Business Day. The amount of cash 

deposit required is the difference 

between the aggregate market value of 

the Treasuries required to be included 

in a Creation Basket Deposit as of 4:00 

p.m. E.T. on the date the order to 

purchase is properly received and the 

total required deposit. 

The procedures by which an 

Authorized Purchaser can redeem one 

or more baskets mirror the procedures 

for the creation of baskets. On any 

Business Day, an Authorized Purchaser 

may place an order with the Distributor 

to redeem one or more baskets. 

Redemption orders must be placed by 

12:00 p.m. E.T. or the close of regular 

trading on the NYSE Arca, whichever is 

earlier. A redemption order so received 

will be effective on the date it is 

received in satisfactory form by the 

Distributor. The redemption procedures 

allow Authorized Purchasers to redeem 

baskets and do not entitle an individual 

shareholder to redeem any Shares in an 

amount less than a Redemption Basket, 

or to redeem baskets other than through 

an Authorized Purchaser. 

The redemption distribution due from 

the Fund will be delivered to the 

Authorized Purchaser by 3:00 p.m. E.T. 

on the third business day following the 

redemption order date if, by 3:00 p.m. 

E.T. on such third business day, the 

Fund’s account at the Depositary Trust 

Company (‘‘DTC’’) has been credited 


rmajette on DSK3VPTVN1PROD with NOTICES
65440 Federal Register / Vol. 79, No. 213 / Tuesday, November 4, 2014 / Notices 

12 17 CFR 240.10A–3. 

13 17 CFR 240.10A–3(c)(7). 

with the baskets to be redeemed. If the 

Fund’s DTC account has not been 

credited with all of the baskets to be 

redeemed by such time, the redemption 

distribution will be delivered to the 

extent of whole baskets received. Any 

remainder of the redemption 

distribution will be delivered on the 

next business day to the extent of 

remaining whole baskets received if the 

Fund receives the fee applicable to the 

extension of the redemption distribution 

date which ETFMC may, from time to 

time, determine and the remaining 

baskets to be redeemed are credited to 

the Fund’s DTC account by 3:00 p.m. 

E.T. on such next business day. Any 

further outstanding amount of the 

redemption order shall be cancelled. 

The Exchange will obtain a 

representation prior to listing of the 

Fund from the Trust that the NAV per 

Share will be calculated daily and made 

available to all market participants at 

the same time. 

The Fund will meet the initial and 

continued listing requirements 

applicable to TIRs in NYSE Arca 

Equities Rule 8.200 and Commentary 

.02 thereto. With respect to application 

of Rule 10A–3 12 under the Act, the 

Fund will rely on the exception 

contained in Rule 10A–3(c)(7).13 A 

minimum of 100,000 Shares of the Fund 

will be outstanding as of the start of 

trading on the Exchange. 

The Fund’s investments will be 

consistent with the Fund’s investment 

objective and will not be used to 

enhance leverage. That is, the Fund’s 

investments will not be used to seek 

performance that is a multiple (e.g., 2× 

or 3×) or inverse multiple of the Fund’s 

Benchmark Portfolio. 

A more detailed description of the 

Fund as well as investment risks, 

creation and redemption procedures 

and fees is set forth in the Registration 

Statement. 

Availability of Information Regarding 

the Shares 

The Fund’s Web site, 

www.risingratefund.com, will be 

publicly accessible at no charge prior to 

the public offering of Shares and will 

include a form of the prospectus for that 

may be downloaded. The Web site will 

include additional quantitative 

information updated on a daily basis, 

including (a) the current NAV per Share 

daily and the prior Business Day’s NAV 

and the reported closing price; (b) the 

mid-point of the bid-ask price in 

relation to the NAV as of the time the 

NAV is calculated (the ‘‘Bid-Ask 

Price’’); (c) calculation of the premium 

or discount of such price against such 

NAV; (d) the Bid-Ask Price of Shares 

determined using the highest bid and 

lowest offer as of the time of calculation 

of the NAV; (e) data in chart form 

displaying the frequency distribution of 

discounts and premiums of the Bid-Ask 

Price against the NAV, within 

appropriate ranges for each of the four 

(4) previous calendar quarters; (f) the 

prospectus; and (g) other applicable 

quantitative information. 

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 Exchange via the NSCC. The 

basket represents one Creation Unit of 

the Fund. 

Investors can also obtain the Trust’s 

Statement of Additional Information 

(‘‘SAI’’), Shareholder Reports and Form 

N–CSR. The Trust’s SAI and 

Shareholder Reports are available free 

upon request from the Trust, and those 

documents and the Form N–CSR may be 

viewed on-screen or downloaded from 

the Commission’s Web site at 

www.sec.gov. Information regarding 

market price and trading volume of the 

Shares 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 

for the Shares will be published daily in 

the financial section of newspapers. 

This Web site disclosure of the 

portfolio composition of the Fund will 

occur at the same time as the disclosure 

by the Sponsor of the portfolio 

composition to authorized participants 

so that all market participants are 

provided portfolio composition 

information at the same time. Therefore, 

the same portfolio information will be 

provided on the public Web site as well 

as in electronic files provided to 

authorized participants. Accordingly, 

each investor will have access to the 

current portfolio composition of the 

Fund through the Fund’s Web site. 

The IIV will be calculated by using 

the Fund’s prior day’s closing NAV per 

share as a base and updating that value 

throughout the trading day to reflect 

changes in the most recently reported 

trade price for the Treasury Instruments. 

The IIV per Share will be widely 

disseminated by one or more major 

market data vendors at least every 15 

seconds during the Core Trading 

Session. 

The NAV for the Shares will be 

disseminated to all market participants 

at the same time. The Exchange will 

also make available on its Web site daily 

trading volume of the Shares and the 

closing prices of such Shares. The intraday closing prices and settlement prices 

of the Treasury Instruments are or will 

be readily available from the Web sites 

of the relevant exchanges on which 

Treasury Instruments are traded 

(primarily the CME). The relevant 

exchanges trading Treasury Instruments 

also provide delayed futures 

information on current and past trading 

sessions and market news free of charge 

on their respective Web sites. 

Quotation information from brokers 

and dealers or major market data 

vendors will be available for money 

market instruments and U.S. Treasuries. 

Quotation and last-sale information 

regarding the Shares will be 

disseminated through the facilities of 

the CTA. In addition, the Fund’s Web 

site, www.risingratefund.com, will 

display the applicable end of day 

closing NAV. 

Availability of Information About the 

Benchmark Portfolio 

The daily closing Benchmark 

Portfolio level and the percentage 

change in the daily closing level for the 

Benchmark Portfolio will be publicly 

available from one or more major market 

data vendors. Data regarding the 

Benchmark Portfolio, updated every 15 

seconds, will also be available through 

a major market data vendor. 

Data regarding the Treasury 

Instruments will also be available from 

the CME Web site. Data regarding the 

Treasury securities underlying the 

Treasury Instruments will be publicly 

available from various financial 

information service providers. 

Information relating to the weighting of 

Treasury Instruments and the 

Benchmark Portfolio methodology is 

also available on the Web site for Fund 

at www.risingratefund.com. 

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 4:00 

a.m. to 8:00 p.m. E.T. 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 

trading sessions. As provided in NYSE 

Arca Equities Rule 7.6, Commentary .03, 

the minimum price variation (‘‘MPV’’) 


rmajette on DSK3VPTVN1PROD with NOTICES
Federal Register / Vol. 79, No. 213 / Tuesday, November 4, 2014 / Notices 65441 

14 17 CFR 240.10A–3. 

15See NYSE Arca Equities Rule 7.12. 

16FINRA surveils trading on the Exchange 

pursuant to a regulatory services agreement. The 

Exchange is responsible for FINRA’s performance 

under this regulatory services agreement. 

17For a list of the current members of ISG, see 

www.isgportal.org. The Exchange notes that not all 

instruments traded by the Fund may trade on 

markets that are members of ISG or with which the 

Exchange has in place a comprehensive 

surveillance sharing agreement. 18 15 U.S.C. 78f(b)(5). 

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. 

The Shares will conform to the initial 

and continued listing criteria under 

NYSE Arca Equities Rule 8.200. The 

Exchange represents that, for initial 

and/or continued listing, the Fund will 

be in compliance with Rule 10A–3 14

under the Act, as provided by NYSE 

Arca Equities Rule 5.3. A minimum of 

100,000 Shares for the Fund will be 

outstanding at the commencement of 

trading on the Exchange. 

The trading of the Shares will be 

subject to NYSE Arca Equities Rule 

8.200, Commentary .02(e), which sets 

forth certain restrictions on Equity 

Trading Permit (‘‘ETP’’) Holders acting 

as registered Market Makers in TIRs to 

facilitate surveillance. See 

‘‘Surveillance’’ below for more 

information. 

With respect to trading halts, the 

Exchange may consider all relevant 

factors in exercising its discretion to 

halt or suspend trading in the Shares. 

Trading 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 underlying 

securities, or (2) whether other unusual 

conditions or circumstances detrimental 

to the maintenance of a fair and orderly 

market are present. In addition, trading 

in Shares will be subject to trading halts 

caused by extraordinary market 

volatility pursuant to the Exchange’s 

‘‘circuit breaker’’ rule 15 or by the halt or 

suspension of trading of the underlying 

securities. 

The Exchange represents that the 

Exchange may halt trading during the 

day in which an interruption to the 

dissemination of the IIV occurs. If an 

interruption to the dissemination of the 

IIV persists past the trading day in 

which it occurred, the Exchange will 

halt trading no later than the beginning 

of the trading day following the 

interruption. In addition, if the 

Exchange becomes aware that the NAV 

with respect to the Shares is not 

disseminated to all market participants 

at the same time, it will halt trading in 

the Shares until such time as the NAV 

is available to all market participants. 

Surveillance 

The Exchange represents that trading 

in the Shares will be subject to the 

existing trading surveillances, 

administered by the Financial Industry 

Regulatory Authority (‘‘FINRA’’) on 

behalf of the Exchange, which are 

designed to detect violations of 

Exchange rules and applicable federal 

securities laws.16 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 federal 

securities laws applicable to trading on 

the Exchange. 

The surveillances referred to above 

generally focus on detecting securities 

trading outside their normal patterns, 

which could be indicative of 

manipulative or other violative activity. 

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. 

FINRA, on behalf of the Exchange, 

will communicate as needed regarding 

trading in the Shares and underlying 

Treasury Instruments with other 

markets and entities that are members of 

the Intermarket Surveillance Group 

(‘‘ISG’’), and FINRA, on behalf of the 

Exchange, may obtain trading 

information regarding trading in the 

Shares and underlying Treasury 

Instruments from such markets and 

other entities. In addition, the Exchange 

may obtain information regarding 

trading in the Shares and underlying 

Treasury Instruments from markets and 

other entities that are members of ISG or 

with which the Exchange has in place 

a comprehensive surveillance sharing 

agreement.17 FINRA, on behalf of the 

Exchange, is able to access, as needed, 

trade information for certain fixed 

income securities held by the Fund 

reported to FINRA’s Trade Reporting 

and Compliance Engine (‘‘TRACE’’). 

For components traded on exchanges, 

not more than 10% of the net assets of 

the Fund shall consist of components 

whose principal trading market is not a 

member of ISG or is a market with 

which the Exchange does not have a 

comprehensive surveillance sharing 

agreement. Furthermore, not more than 

10% of the net assets of a Fund in the 

aggregate shall consist of futures 

contracts or options contracts whose 

principal market is not a member of ISG 

or is a market with which the Exchange 

does not have a comprehensive 

surveillance sharing agreement. 

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 

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 

Basket 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 IIV will not be 

calculated or publicly disseminated; (4) 

how information regarding the IIV 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 

Act. The Bulletin will also disclose that 

the NAV for the Shares will be 

calculated after 4:00 p.m. E.T. each 

trading day. 

The Information Circular will disclose 

that information about the Shares of the 

Fund will be publicly available on the 

Fund’s Web site. 

2. Statutory Basis 

The basis under the Act for this 

proposed rule change is the requirement 

under Section 6(b)(5) 18 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. 


rmajette on DSK3VPTVN1PROD with NOTICES
65442 Federal Register / Vol. 79, No. 213 / Tuesday, November 4, 2014 / Notices 

The Exchange believes that the 

proposed rule change is designed to 

prevent fraudulent and manipulative 

acts and practices in that the Shares will 

be listed and traded on the Exchange 

pursuant to the initial and continued 

listing criteria in NYSE Arca Equities 

Rule 8.200 and Commentary .02 thereto. 

The Fund will seek to achieve its 

investment objective by tracking the 

performance of the Benchmark 

Portfolio. The Sponsor represents that 

the Trust will invest in Treasury 

Instruments in a manner consistent with 

the Trust’s investment objective and 

will not use futures contracts or options 

to obtain leveraged investment results. 

The Sponsor is not broker-dealer or 

affiliated with a broker-dealer. The 

Sponsor represents that it will 

implement and maintain procedures 

designed to prevent the use and 

dissemination of material non-public 

information. The Exchange has in place 

surveillance procedures that are 

adequate to properly monitor trading in 

the Shares in all trading sessions and to 

deter and detect violations of Exchange 

rules and applicable federal securities 

laws. FINRA, on behalf of the Exchange, 

will communicate as needed regarding 

trading in the Shares and underlying 

Treasury Instruments with other 

markets and other entities that are 

members of the ISG, and FINRA, on 

behalf of the Exchange, may obtain 

trading information regarding trading in 

the Shares and underlying Treasury 

Instruments from such markets and 

other entities. In addition, the Exchange 

may obtain information regarding 

trading in the Shares and underlying 

Treasury Instruments from markets and 

other entities that are members of ISG or 

with which the Exchange has in place 

a comprehensive surveillance sharing 

agreement. FINRA, on behalf of the 

Exchange, is able to access, as needed, 

trade information for certain fixed 

income securities held by the Fund 

reported to TRACE. For components 

traded on exchanges, not more than 

10% of the net assets of the Fund shall 

consist of components whose principal 

trading market is not a member of ISG 

or is a market with which the Exchange 

does not have a comprehensive 

surveillance sharing agreement. 

Furthermore, not more than 10% of the 

net assets of a Fund in the aggregate 

shall consist of futures contracts or 

options contracts whose principal 

market is not a member of ISG or is a 

market with which the Exchange does 

not have a comprehensive surveillance 

sharing agreement. The NAV for the 

Shares will be disseminated to all 

market participants at the same time. 

The Exchange will also make available 

on its Web site daily trading volume of 

the Shares and the closing prices of 

such Shares. The intra-day closing 

prices and settlement prices of the 

Treasury Instruments are or will be 

readily available from the Web sites of 

the relevant exchanges on which 

Treasury Instruments are traded 

(primarily the CME). The relevant 

exchanges trading Treasury Instruments 

also provide delayed futures 

information on current and past trading 

sessions and market news free of charge 

on their respective Web sites. 

In addition, quotation information 

from brokers and dealers or major 

market data vendors will be available 

for money market instruments. 

Quotation and last-sale information 

regarding the Shares will be 

disseminated through the facilities of 

the CTA. In addition, the Fund’s Web 

site, www.risingratefund.com, will 

display the applicable end of day 

closing NAV. 

The daily closing Benchmark 

Portfolio level and the percentage 

change in the daily closing level for the 

Benchmark Portfolio will be publicly 

available from one or more major market 

data vendors. Data regarding the 

Benchmark Portfolio, updated every 15 

seconds, will also available on a major 

market data vendor. Data regarding the 

Treasury Instruments will also available 

from the CME Web site. Data regarding 

the Treasury securities underlying the 

Treasury Instruments will be publicly 

available from various financial 

information service providers. 

Information relating to the weighting of 

Treasury Instruments and the 

Benchmark Portfolio methodology is 

also available on the Web site for Fund 

at www.risingratefund.com. 

Trading 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 underlying 

securities, or (2) whether other unusual 

conditions or circumstances detrimental 

to the maintenance of a fair and orderly 

market are present. Trading in Shares 

will be subject to trading halts caused 

by extraordinary market volatility 

pursuant to the Exchange’s ‘‘circuit 

breaker’’ rule or by the halt or 

suspension of trading of the underlying 

securities. The Exchange represents that 

the Exchange may halt trading during 

the day in which an interruption to the 

dissemination of the IIV occurs. If an 

interruption to the dissemination of the 

IIV persists past the trading day in 

which it occurred, the Exchange will 

halt trading no later than the beginning 

of the trading day following the 

interruption. In addition, if the 

Exchange becomes aware that the NAV 

with respect to the Shares is not 

disseminated to all market participants 

at the same time, it will halt trading in 

the Shares until such time as the NAV 

is available to all market participants. 

The proposed rule change is designed 

to promote just and equitable principles 

of trade and to protect investors and the 

public interest in that a large amount of 

information is publicly available 

regarding the Shares, thereby promoting 

market transparency. The Fund’s NAV 

will be disseminated to all market 

participants at the same time. The IIV 

will be disseminated at least every 15 

seconds during the Core Trading 

Session. Trading in the Shares will be 

halted if the circuit breaker parameters 

in NYSE Arca Equities Rule 7.12 have 

been reached or because of market 

conditions or for reasons that, in the 

view of the Exchange, make trading in 

the Shares inadvisable. Moreover, prior 

to the commencement of trading, the 

Exchange will inform its ETP Holders in 

an Information Bulletin of the special 

characteristics and risks associated with 

trading the Shares. 

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 

it will facilitate the listing and trading 

of an additional type of trust issued 

receipts that will enhance competition 

among market participants, to the 

benefit of investors and the marketplace. 

As noted above, FINRA, on the 

Exchange’s behalf, has in place 

surveillance procedures relating to 

trading in the Shares and underlying 

Treasury Instruments and may obtain 

information via ISG from other 

exchanges that are members of ISG or 

with which the Exchange has entered 

into a comprehensive surveillance 

sharing agreement. In addition, as noted 

above, investors will have ready access 

to information regarding the Fund’s 

holdings, IIV, and quotation and last 

sale information for the Shares. 

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 purpose of the Act. The Exchange 

notes that the proposed rule change will 

facilitate the listing and trading of an 

additional type of Trust Issued Receipts 

product that will principally hold fixed 

income securities and derivatives 

thereon, and that will enhance 

competition among market participants, 


rmajette on DSK3VPTVN1PROD with NOTICES
Federal Register / Vol. 79, No. 213 / Tuesday, November 4, 2014 / Notices 65443 

19 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Exchange Act Release No. 34–71920 (Apr. 

9, 2014) (File No. SR–ICEEU–2014–04); 79 FR 

21331 (Apr. 15, 2015) (order approving rule changes 

to clear other Western European sovereign CDS 

contracts) (the ‘‘Prior WE Sovereigns Order’’). 

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 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or within such longer period (i) 

as the Commission may designate up to 

90 days of such date if it finds such 

longer period to be appropriate and 

publishes its reasons for so finding or 

(ii) as to which the self-regulatory 

organization consents, the Commission 

will: 

(A) By order approve or disapprove 

the proposed rule change, or 

(B) institute proceedings to determine 

whether the proposed rule change 

should be disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s Internet 

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

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

NYSEArca–2014–120 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–2014–120. 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– 

NYSEArca–2014–120, and should be 

submitted on or before November 25, 

2014. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.19

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–26125 Filed 11–3–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73459; File No. SR–ICEEU– 

2014–18] 

Self-Regulatory Organizations; ICE 

Clear Europe Limited; Notice of Filling 

of Proposed Rule Change To Provide 

for the Clearance of Additional 

Sovereign Contracts 

October 29, 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 October 

20, 2014, ICE Clear Europe Limited 

(‘‘ICE Clear Europe’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed changes 

to the rules as described in Items I, II, 

and III below, which Items have been 

primarily prepared by ICE Clear Europe. 

The Commission is publishing this 

notice to solicit comments on the 

proposed changes to the rules from 

interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The principal purpose of the change 

is to provide for the clearance of 

additional CDS contracts that are 

Western European sovereign CDS 

contracts referencing the Kingdom of 

Belgium and the Republic of Austria 

(the ‘‘Additional WE Sovereign 

Contracts’’). 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, ICE 

Clear Europe included statements 

concerning the purpose of and basis for 

proposing the Additional WE Sovereign 

Contracts. The text of these statements 

may be examined at the places specified 

in Item IV below. ICE Clear Europe has 

prepared summaries, set forth in 

sections A, B, and C below, of the most 

significant aspects of these statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

The purpose of the proposed rule 

change is for ICE Clear Europe to offer 

clearing of Western European sovereign 

CDS contracts referencing two 

additional reference entities, the 

Kingdom of Belgium and the Republic 

of Austria. ICE Clear Europe currently 

clears CDS contracts referencing four 

other Western European sovereigns: 

Ireland, the Republic of Italy, the 

Portuguese Republic and the Kingdom 

of Spain.3 ICE Clear Europe believes 

clearance of the Additional WE 

Sovereign Contracts will benefit the 

markets for credit default swaps on 

Western European sovereigns by 

offering to market participants the 

benefits of clearing, including reduction 

in counterparty risk and safeguarding of 

margin assets pursuant to Clearing 

House rules. 

The Additional WE Sovereign 

Contracts will constitute ‘‘Non-STEC 

Single Name Contracts’’ for purposes of 

the CDS Procedures and accordingly 

will be governed by Paragraph 10 of the 

CDS Procedures, consistent with 

treatment of the Western European 

sovereign CDS contracts currently 

cleared by ICE Clear Europe. Clearing of 

the Additional WE Sovereign Contracts 

will not require any changes to ICE 


rmajette on DSK3VPTVN1PROD with NOTICES