Federal Register / Vol. 79, No. 247 / Wednesday, December 24, 2014 / Notices 77583 

10See supra, note 3. 

11See supra, note 3. 

12 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 73464 

(Oct. 29, 2014), 79 FR 65437. 

if such Market Maker is designated as 

the Preferred Market Maker. 

The Exchange notes that this proposal 

is similar to the rules of other 

exchanges.10

For the foregoing reasons, the 

Exchange believes this proposal is a 

reasonable modification to its rules, 

designed to facilitate increased 

interaction of orders on the Exchange, 

and to do so in a manner that ensures 

a dynamic, real-time trading mechanism 

that maximizes opportunities for trade 

executions of orders. The Exchange 

believes it is appropriate and consistent 

with the Act to adopt the proposed rule 

changes. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe the 

proposed rule change represents any 

undue burden on competition or will 

impose any burden on competition 

among exchanges in the listed options 

marketplace not necessary or 

appropriate in furtherance of the 

purposes of the Act. To the contrary, the 

proposal is pro-competitive because it 

will enable the Exchange to better 

compete with other options exchanges 

that provide similar allocation 

preferences and algorithms.11

With respect to intra-market 

competition, Preferenced Orders will be 

available to all Participants. The 

Exchange believes that the proposal 

should encourage Market Makers that 

desire to qualify as Preferred Market 

Makers to regularly maintain quotes at 

competitive price levels in order to 

obtain execution percentages on 

Preferenced Orders. As noted above, the 

proposed preferred allocation 

percentage for Preferred Market Makers 

leaves a sizeable enough portion of the 

incoming Preferenced Order for the 

other Market Makers quoting at the 

same price to encourage intra-market 

price competition. Submitting a 

Preferenced Order to the Exchange is 

entirely voluntary and Participants will 

determine whether they wish to submit 

these orders to the Exchange. The 

Exchange operates in a highly 

competitive marketplace with other 

competing exchanges and market 

participants can readily direct their 

order flow to other exchanges if they so 

choose. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange has neither solicited 

nor received comments on 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– 

BOX–2014–28 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–BOX–2014–28. 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–BOX– 

2014–28, and should be submitted on or 

before January 14, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–30121 Filed 12–23–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73866; File No. SR– 

NYSEArca–2014–120] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Order Approving a 

Proposed Rule Change, as Modified by 

Amendment No. 2 Thereto, To List and 

Trade Shares of the Sit Rising Rate 

Fund Under NYSE Arca Equities Rule 

8.200 

December 17, 2014. 

I. Introduction 

On October 16, 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 Sit Rising Rate 

Fund (‘‘Fund’’), pursuant to NYSE Arca 

Equities Rule 8.200. The proposed rule 

change was published for comment in 

the Federal Register on November 4, 

2014.3 On November 6, 2014, the 

Exchange filed Amendment No. 2 to the 

proposed rule change, which 

superseded and replaced the proposed 

mstockstill on DSK4VPTVN1PROD with NOTICES

77584 Federal Register / Vol. 79, No. 247 / Wednesday, December 24, 2014 / Notices 

4Amendment No. 2 replaced SR–NYSEArca– 

2014–120 and superseded such filing in its entirety. 

Amendment No. 1 was filed on November 3, 2014, 

and withdrawn on November 6, 2014. 

5See Securities Exchange Act Release No. 73602 

(Nov. 14, 2014), 79 FR 69173 (‘‘Notice’’). 

6See id. at 69173. 

7See id. at 69177. 

8The Trust submitted a registration statement 

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

Securities Act of 1933 on October 7, 2014 (File No. 

333–199190) (‘‘Registration Statement’’). 

9The Sponsor is not a broker-dealer or affiliated 

with a broker-dealer. See Notice, supra note 5, 79 

FR at 69178. 

10Sit is not affiliated with the Sponsor. Sit is not 

a broker-dealer or affiliated with a broker-dealer. 

See id. at 69174 n. 14. 

11When establishing positions in Treasury 

Instruments, the Fund will be required to deposit 

initial margin with a value of approximately 3% to 

10% of the value of each Treasury Instrument 

position at the time it is established. These margin 

requirements are subject to change from time to 

time by the exchange or the FCM. On a daily basis, 

the Fund will be obligated to pay, or entitled to 

receive, variation margin in an amount equal to the 

change in the daily settlement level of its Treasury 

Instruments positions. See id. at 69174 n. 17. 

12See supra notes 5 and 8, respectively. 

13 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). 

14 15 U.S.C. 78f(b)(5). 

15 15 U.S.C. 78k–1(a)(1)(C)(iii). 

16See Notice, supra note 5, 79 FR at 69177. 

17See id. 

18See id. at 69176. 

rule change as originally filed.4 The 

proposed rule change, as modified by 

Amendment No. 2, was published for 

comment in the Federal Register on 

November 20, 2014.5 The Commission 

received no comments on the proposal. 

This order approves the proposed rule 

change, as modified by Amendment No. 

2. 

II. Description of the Proposed Rule 

Change 

The Exchange proposes to list and 

trade Shares of the Fund pursuant to 

NYSE Arca Equities Rule 8.200, 

Commentary .02, which permits the 

listing of Trust Issued Receipts (‘‘TIRs’’). 

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.6 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.7

The Fund is a series of the ETF 

Managers Group Commodity Trust I 

(‘‘Trust’’), a Delaware statutory trust.8

The Fund’s sponsor and investment 

manager is ETF Managers Capital LLC 

(‘‘Sponsor’’), a limited liability company 

that is a commodity pool operator that 

is registered with the Commodity 

Futures Trading Commission 9 and is a 

member of the National Futures 

Association. U.S. Bancorp Fund 

Services will be the transfer agent, 

custodian, and administrator for the 

Fund. Esposito Securities LLC will 

provide statutory and wholesaling 

distribution services. 

The Fund’s investment objective will 

be to profit from rising interest rates by 

tracking the performance of a portfolio 

(‘‘Benchmark Portfolio’’) that consists of 

exchange traded futures contracts and 

options on futures on 2, 5 and 10-year 

U.S. Treasury securities (‘‘Treasury 

Instruments’’) and that is weighted to 

achieve a targeted negative 10-year 

average effective portfolio duration 

(‘‘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 Fund will invest in the 

Treasury Instruments in the same 

weighting as the Benchmark Portfolio. 

The Benchmark Portfolio will be 

maintained by Sit Fixed Income 

Advisors II, LLC (‘‘Sit’’) 10 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 and the Fund will 

each maintain a short position in 

Treasury Instruments. The Fund will 

not use futures contracts or options to 

obtain leveraged investment results. 

The Sponsor anticipates that 

approximately 5% to 15% of the Fund’s 

assets will be used as payment for or 

collateral for Treasury Instruments. In 

order to collateralize its Treasury 

Instrument positions the Fund will hold 

such assets, from which it will post 

margin to its futures commission 

merchant (‘‘FCM’’), in an amount equal 

to the margin required by the relevant 

exchange, and transfer to its FCM any 

additional amounts that may be 

separately required by the FCM.11 Any 

assets not required to be posted as 

margin with the FCM will be held at the 

Fund’s administrator in cash or cash 

equivalents. 

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) 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 net asset value (‘‘NAV’’) 

and changes in the Benchmark Portfolio, 

because the Benchmark Portfolio does 

not reflect expenses or income. 

Additional information regarding the 

Fund, including the NAV calculation, 

operation of the Fund, the Benchmark 

Portfolio, restrictions, risks, fees, 

expenses, and Share creations and 

redemption can be found in the Notice 

and the Registration Statement, as 

applicable.12

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.13 In particular, the 

Commission finds that the proposed 

rule change is consistent with Section 

6(b)(5) of the Exchange Act,14 which 

requires, among other things, that the 

Exchange’s rules be 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 a national market system, and, in 

general, to protect investors and the 

public interest. 

The Commission finds that the 

proposal is consistent with Section 

11A(a)(1)(C)(iii) of the Exchange Act,15

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 

information regarding the Shares will be 

disseminated through the facilities of 

the Consolidated Tape Association 

(‘‘CTA’’).16 The Exchange will make 

available on its Web site daily trading 

volume of the Shares and the closing 

prices of the Shares.17 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.18

Information regarding the previous 

day’s closing price and trading volume 

mstockstill on DSK4VPTVN1PROD with NOTICES

Federal Register / Vol. 79, No. 247 / Wednesday, December 24, 2014 / Notices 77585 

19See id. 20The Exchange represents that 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 net asset value of the Fund’s cash 

and cash equivalent holdings will not be updated 

throughout the day. See id. at 69175. The Exchange 

states 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 

trading prices for contracts traded on the futures 

exchanges are unavailable and that, during such 

gaps in time, the IIV will be calculated based on the 

end of day price of such contracts from the futures 

exchanges’ immediately preceding trading session. 

See id. 

21See id. at 69175. 

22See id. 

23See id. 

24See id. The Fund’s NAV 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. 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 and other national exchanges. The 

Administrator will value all other holdings of the 

Fund at (1) current market value, if quotations for 

such property are readily available, or (2) fair value, 

as reasonably determined by the Administrator, if 

the current market value cannot be determined. See 

id. 

25See id. at 69177. 

26See id. at 69176 and 69177. 27See id. at 69176. 28See id. 29See id. 30See id. at 69177. 31See id. 32See id. at 69174 and 69177. 33See id. at 69176. 

34See id. 

35See id. at 69177. 

36See id. 

37See id. at 69176. 

38See id. 

39See id. at 69177. 

40See id. 

41See id. 

42See id. 

information for the Shares will be 

published daily in the financial section 

of newspapers.19

The Intraday Indicative Value 

(‘‘IIV’’) 20 per Share will be widely 

disseminated by one or more major 

market data vendors at least every 15 

seconds during the Core Trading 

Session on the Exchange (9:30 a.m., 

Eastern Time, to 4:00 p.m., Eastern 

Time).21 The Exchange disseminates the 

IIV through the facilities of CTA/CQ 

High Speed Lines.22 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.23

The NAV of the Fund will be 

calculated daily and will be released 

after 4:00 p.m. Eastern Time, the end of 

the Core Trading Session on the 

Exchange.24 The NAV for the Shares 

will be disseminated to all market 

participants at the same time.25 The 

Fund’s Web site will display the 

applicable end of day closing NAV and 

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.26

The Fund will provide Web site 

disclosure of its portfolio holdings 

daily, which will include the names, 

quantity, price, and market value of the 

Treasury Instruments held by the Fund 

and other financial instruments such as 

Treasury Bills, if any; the characteristics 

of such instruments and cash 

equivalents; and the amount of cash 

held in the portfolio of the Fund.27 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.28 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 

National Securities Clearing 

Corporation.29

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.30 The intraday value of 

the Benchmark Portfolio, updated every 

15 seconds, will also be available 

through major market data vendors.31

The Benchmark Component Instruments 

constituting the Benchmark Portfolio 

and anticipated rebalancing dates, 

information relating to the weighting of 

Treasury Instruments in the Benchmark 

Portfolio, and the Benchmark Portfolio 

methodology will be available on the 

Web site for Fund.32

The Exchange represents that 

quotation and last sale information for 

the Treasury Instruments will be widely 

disseminated through a variety of major 

market data vendors worldwide, such as 

Bloomberg and Reuters.33 In addition, 

the Exchange further represents that 

complete real-time price (and volume) 

data for such contracts is available by 

subscription from Reuters and 

Bloomberg.34 The intra-day closing 

prices and settlement prices of the 

Treasury Instruments are or will be 

readily available from the Web sites of 

the futures exchanges on which the 

Treasury Instruments are traded.35 The 

relevant futures exchanges trading 

Treasury Instruments also provide 

delayed futures price (and volume) 

information on current and past trading 

sessions and market news free-of-charge 

on their Web sites.36 The specific 

contract specifications for such 

contracts are available at the futures 

exchanges Web sites, as well as other 

financial informational sources.37 The 

price of Treasury Instruments also is 

available on a 24-hour basis from major 

market data vendors.38 Similar 

information regarding the Treasury 

securities underlying the Treasury 

Instruments will be publicly available 

from various financial information 

service providers.39 Quotation 

information from brokers and dealers or 

major market data vendors will be 

available for U.S. Treasuries or other 

high credit quality, short-term fixedincome or similar securities (such as 

shares of money market funds).40

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. The Exchange 

represents that it may halt trading 

during the day in which an interruption 

to the dissemination of the IIV, the 

Benchmark Portfolio, or the value of the 

underlying Treasury Instruments 

occurs.41 If an interruption to the 

dissemination of the IIV, the Benchmark 

Portfolio, or the value of the underlying 

Treasury Instruments 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.42 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 

mstockstill on DSK4VPTVN1PROD with NOTICES

77586 Federal Register / Vol. 79, No. 247 / Wednesday, December 24, 2014 / Notices 

43See id. 

44See id. 

45See NYSE Arca Equities Rule 7.12. 

46See Notice, supra note 5, 79 FR at 69177. 

47See id. at 69178. 

48See id. at 69177. 

49See id. 

50See id. at 69177–78. 

51See id. at 69178. 

52See id. 

53See id. 

54See id. at 69176. 

55See id. at 69177. 

56See id. 

57See id. at 69178. 

58 17 CFR 240.10A–3. 

59See Notice, supra note 5, 79 FR at 69177. 

60See id. at 69178. 

61See id. at 69176. 

62See id. at 69177. 

63See supra note 5. 

64 15 U.S.C. 78s(b)(2). 

65 17 CFR 200.30–3(a)(12). 

the NAV is available to all market 

participants.43

With respect to trading halts, the 

Exchange may consider all relevant 

factors in exercising its discretion to 

halt or suspend trading in the Shares.44

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 

Treasury Instruments, (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. In addition, trading 

in Shares will be subject to trading halts 

caused by extraordinary market 

volatility pursuant to the Exchange’s 

‘‘circuit breaker’’ rule 45 or by the halt or 

suspension of trading of the underlying 

Treasury Instruments.46

The Exchange states that it has a 

general policy prohibiting the 

distribution of material, non-public 

information by its employees.47

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.48 The Financial 

Industry Regulatory Authority 

(‘‘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.49 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.50

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.51 Furthermore, the 

Sponsor is not a broker-dealer or 

affiliated with a broker-dealer and the 

Sponsor represents that it will 

implement and maintain procedures 

designed to prevent the use and 

dissemination of material non-public 

information.52 Sit, which maintains the 

Benchmark Portfolio, is not affiliated 

with the Sponsor and is not a brokerdealer or affiliated with a brokerdealer.53

In support of this proposal, the 

Exchange has made the following 

representations: 

(1) The Fund will meet the initial and 

continued listing requirements 

applicable to TIRs in NYSE Arca 

Equities Rule 8.200 and Commentary 

.02 thereto.54

(2) The Exchange has appropriate 

rules to facilitate transactions in the 

Shares during all trading sessions.55

(3) Trading in the Shares will be 

subject to the existing trading 

surveillances, administered by the 

FINRA on behalf of the Exchange, 

which are designed to detect violations 

of Exchange rules and applicable federal 

securities laws, and 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.56

(4) 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. 

Specifically, the Bulletin will discuss 

the following: (a) The procedures for 

purchases and redemptions of Shares in 

Creation Basket aggregations (and that 

Shares are not individually redeemable); 

(b) 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; (c) 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; (d) 

how information regarding the IIV is 

disseminated; (e) 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 (f) 

trading information.57

(5) For initial and continued listing, 

the Fund will be in compliance with 

Rule 10A–3 under the Act,58 as 

provided by NYSE Arca Equities Rule 

5.3.59

(6) For components traded on 

exchanges, not more than 10% of such 

components 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.60

(7) 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., 2X 

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

Benchmark Portfolio.61

(8) A minimum of 100,000 Shares for 

the Fund will be outstanding at the 

commencement of trading on the 

Exchange.62

This order is based on the Exchange’s 

representations above, as well as those 

in the Notice.63

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,64

that the proposed rule change (SR– 

NYSEArca–2014–120), as modified by 

Amendment No. 2 thereto, be, and it 

hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.65

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–30105 Filed 12–23–14; 8:45 am] 

BILLING CODE 8011–01–P 

mstockstill on DSK4VPTVN1PROD with NOTICES