Federal Register / Vol. 79, No. 220 / Friday, November 14, 2014 / Notices 68329 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 73149 

(September 19, 2014), 79 FR 57640 (‘‘Notice’’). 

4On September 5, 2014, the Fund filed with the 

Commission a pre-effective amendment to its 

registration statement on Form S–1 under the 

Securities Act of 1933 (15 U.S.C. 77a) relating to the 

Fund. (File No. 333–182301) (‘‘Registration 

Statement’’). 

5See Notice, supra note 3, 79 FR at 57645. 

6See id. at 57646. 

7The Sponsor is registered with the Commodity 

Futures Trading Commission as a commodity pool 

operator, and is approved as a member of the 

National Futures Association. The Sponsor is a 

wholly-owned subsidiary of GreenHaven Group, 

LLC and is affiliated with GreenHaven Commodity 

Services, LLC, a commodities trading firm. 

8With regard to a ‘‘three-month strip,’’ ‘‘strip’’ is 

a term used in futures markets to describe a series 

of delivery months for an individual futures 

contract. A calendar strip is a three-month strip of 

one of the four calendar quarters. For example, a 

three-month calendar strip for the third quarter 

2014 includes July 2014, August 2014, and 

September 2014 coal futures contracts. 

9See supra notes 3 and 4, respectively. 

10 In approving this proposed rule change, the 

Commission has considered the proposed rule’s 

impact on efficiency, competition and capital 

formation. See 15 U.S.C. 78c(f). 

11 15 U.S.C. 78f(b)(5). 

12 15 U.S.C. 78k–1(a)(1)(C)(iii). 

13See Notice, supra note 3, 79 FR at 57645. 

14See id. 

15See id. 

16See id. 

17See id. 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73561; File No. SR– 

NYSEArca–2014–102] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Order Approving a 

Proposed Rule Change, as Modified by 

Amendment No. 1 Thereto, Proposing 

To List and Trade Shares of the 

Greenhaven Coal Fund Under NYSE 

Arca Equities Rule 8.200, Commentary 

.02 

November 7, 2014. 

I. Introduction 

On September 5, 2014, NYSE Arca, 

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

with the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 

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

Exchange Act of 1934 (‘‘Exchange 

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

proposed rule change to list and trade 

shares (‘‘Shares’’) of the Greenhaven 

Coal Fund (the ‘‘Fund’’), pursuant to 

NYSE Arca Equities Rule 8.200, 

Commentary .02. On September 18, 

2014, the Exchange filed Amendment 

No. 1 to the proposed rule change, 

which superseded and replaced the 

proposed rule change as originally filed. 

The proposed rule change, as modified 

by Amendment No. 1, was published for 

comment in the Federal Register on 

September 25, 2014.3 The Commission 

received no comments on the proposal. 

This order approves the proposed rule 

change, as modified by Amendment No. 

1. 

II. Description of the Proposed Rule 

Change 

The Exchange proposes to list and 

trade Shares pursuant to NYSE Arca 

Equities Rule 8.200, Commentary .02, 

which permits the listing of Trust Issued 

Receipts (‘‘TIRs’’).4 The Exchange has 

represented that the Fund will meet the 

initial and continued listing 

requirements applicable to TIRs in 

NYSE Arca Equities Rule 8.200 and 

Commentary .02 thereto.5 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.6

The Fund is a commodity pool that is 

organized as a Delaware statutory trust. 

The Fund’s trustee is Christiana Trust, 

a division of Wilmington Savings Fund 

Society, FSB, and the Fund’s sponsor is 

GreenHaven Coal Services, LLC 

(‘‘Sponsor’’).7 ALPS Distributors, Inc. 

will be the Fund’s marketing agent and 

distributor. Bank of New York Mellon 

will be the Fund’s administrator and 

transfer agent and will calculate the net 

asset value (‘‘NAV’’) on a daily basis. 

The Exchange states that the 

investment objective of the Fund is to 

provide investors with exposure to the 

daily change in the price of coal futures, 

before expenses and liabilities of the 

Fund. The Fund intends to achieve this 

objective by investing substantially all 

of its assets in a three-month strip 8 of 

the nearest calendar quarter of 

Rotterdam coal futures contracts (‘‘Coal 

Futures’’) traded on the CME’s Globex 

CME ClearPort clearing services trading 

platforms. All of the Fund’s positions in 

Coal Futures will be cleared by CME 

clearing member firms. The Sponsor 

will seek to invest the Fund’s cash 

collateral in 13-week U.S. Treasury 

Bills. 

Additional information regarding the 

Fund, including the NAV calculation, 

operation of the Fund, portfolio 

composition, restrictions, risks, fees, 

expenses, and Share creations and 

redemption can be found in the Notice 

and the Registration Statement.9

III. Discussion and Commission 

Findings 

After careful review, the Commission 

finds that the Exchange’s proposal to list 

and trade Shares of the Fund is 

consistent with the Exchange Act and 

the rules and regulations thereunder 

applicable to a national securities 

exchange.10 In particular, the 

Commission finds that the proposed 

rule change is consistent with Section 

6(b)(5) of the Exchange Act,11 which 

requires, among other things, that the 

Exchange’s rules be designed to prevent 

fraudulent and manipulative acts and 

practices, promote just and equitable 

principles of trade, to remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system, and, in 

general, to protect investors and the 

public interest. The Commission also 

finds that the proposal is consistent 

with Section 11A(a)(1)(C)(iii) of the 

Exchange Act,12 which sets forth 

Congress’ finding that it is in the public 

interest and appropriate for the 

protection of investors and the 

maintenance of fair and orderly markets 

to assure the availability to brokers, 

dealers, and investors of information 

with respect to quotations for and 

transactions in securities. 

Quotation and last-sale for the Shares 

will be available via the facilities of the 

Consolidated Tape Association.13 The 

Exchange’s Web site will provide daily 

trading volume, closing prices, and 

NAV for the Shares.14 NYSE Euronext 

Global Index Feed and online 

information services will provide the 

intraday Indicative Fund Value (‘‘IFV’’) 

on a per-Share basis, which will be 

calculated by one or more major market 

vendors every 15 seconds during the 

Exchange’s Core Trading Session.15 The 

Fund’s Web site will post the daily 

NAV, as well as a breakdown of the 

holdings of the Fund.16 The Web sites 

for the Fund or the Exchange will also 

provide the following information: (1) 

The current NAV per Share daily and 

the prior business day’s NAV and the 

reported closing price; (2) the midpoint 

of the bid-ask price in relation to the 

NAV as of the time the NAV is 

calculated (‘‘Bid-Ask Price’’); (3) 

calculation of the premium or discount 

of such price against such NAV; (4) the 

bid-ask price of Shares determined 

using the highest bid and lowest offer as 

of the time of calculation of the NAV; 

(5) 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 previous calendar 

quarters; (6) the prospectus; and (7) 

other applicable quantitative 

information.17

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68330 Federal Register / Vol. 79, No. 220 / Friday, November 14, 2014 / Notices 

18See id. 

19See id. 

20See id. 

21See id. 

22See id. at 57646. 

23The Exchange also notes that the Exchange may 

halt trading during the day in which an interruption 

of the dissemination of the IFV or the value of the 

applicable futures contracts occurs. See id. 

24See id. Additionally, trading in Shares will be 

subject to trading halts caused by extraordinary 

market volatility pursuant to the Exchange’s 

‘‘circuit breaker’’ rule. See NYSE Arca Equities Rule 

7.12. 

25See Notice, supra note 3, 79 FR at 57646. 

26See id. at 57645. 

27See id. at 57646. 

28See id. 

29See id. 

30See id. 

31 15 U.S.C. 78s(b)(2). 

32 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. 

Quotation and last-sale information 

for the Coal Futures will be widely 

disseminated through a variety of major 

market data vendors worldwide.18 The 

spot price of coal is also available on a 

24-hour basis from major market 

vendors. The Exchange further 

represents that complete real-time price 

(and volume) data for such contracts is 

available by subscription from certain 

market data vendors.19 For Coal 

Futures, the CME also provides delayed 

futures price (and volume) information 

on current and past trading sessions and 

market news free of charge on its Web 

site.20 The closing price and settlement 

prices of Coal Futures are also readily 

available from the CME.21

The Commission believes that the 

proposal to list and trade Shares is 

reasonably designed to promote fair 

disclosure of information that may be 

necessary to price Shares appropriately 

and to prevent trading when a 

reasonable degree of transparency 

cannot be assured. 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.22

If the IFV or value of Coal Futures is not 

being disseminated as required, the 

Exchange may halt trading during the 

day in which the disruption occurs; if 

the interruption 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.23 The Exchange will 

also consider halting trading for the 

following reasons: (1) The extent to 

which trading is not occurring in the 

Coal Futures; (2) if the creation or 

redemption of Shares is suspended for 

a period that, in the judgment of the 

Exchange, may detrimentally impact 

Exchange trading of the Shares; or (3) 

whether other unusual conditions or 

circumstances detrimental to the 

maintenance of a fair and orderly 

market are present.24

Moreover, 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. The Commission 

notes that the Financial Industry 

Regulatory Authority (‘‘FINRA’’), on 

behalf of the Exchange, will 

communicate as needed regarding 

trading in the Shares and the Coal 

Futures with other markets and other 

entities that are members of the 

Intermarket Surveillance Group (‘‘ISG’’), 

and FINRA may obtain trading 

information regarding trading in the 

Shares and the Coal Futures from such 

markets and other entities that are 

members of ISG or with which the 

Exchange has in place a comprehensive 

surveillance sharing agreement.25

In support of this proposal, the 

Exchange has made representations, 

including that: 

(1) A minimum of 100,000 Shares for 

the Fund will be outstanding as of the 

start of trading on the Exchange.26

(2) The Exchange has appropriate 

rules to facilitate transactions in the 

Shares during all trading sessions.27

(3) Its trading surveillance procedures 

are adequate to properly monitor 

Exchange trading of the Shares in all 

trading sessions and to deter and detect 

violations of Exchange rules and 

applicable federal securities laws.28

(4) CME is a member of the ISG.29

(5) Prior to 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. 

Specifically, the Information Bulletin 

will discuss the following: (1) The risks 

involved in trading the Shares during 

the Opening and Late Trading Sessions, 

or a portion of the Core Trading Session, 

when an updated IFV will not be 

calculated or publicly disseminated; (2) 

the procedures for purchases and 

redemptions of Shares in Basket size 

(and that Shares are not individually 

redeemable); (3) 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; (4) 

how information regarding the IFV 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.30

This order is based on the Exchange’s 

representations. 

For the forgoing reasons, the 

Commission believes the Exchange’s 

proposal to list and trade the Shares is 

consistent with the Exchange Act. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Exchange Act,31

that the proposed rule change (SR– 

NYSEArca–2014–102), as modified by 

Amendment No. 1 thereto, be, and it 

hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.32

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–26948 Filed 11–13–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73556; File No. SR– 

NYSEArca–2014–85] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing of Proposed 

Rule Change Relating to the Listing 

and Trading of Shares of the PIMCO 

Low Duration Investment Grade 

Corporate Bond Active ExchangeTraded Fund Under NYSE Arca 

Equities Rule 8.600 

November 7, 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 

23, 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 and II below, which Items have 

been prepared by the self-regulatory 

organization. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to list and 

trade shares of the following under 

NYSE Arca Equities Rule 8.600 

(‘‘Managed Fund Shares’’): PIMCO Low 

Duration Investment Grade Corporate 

Bond Active Exchange-Traded Fund. 

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