44678 Federal Register / Vol. 82, No. 184 / Monday, September 25, 2017 / Notices 

10 15 U.S.C. 78f(b)(5). 

11 15 U.S.C. 78s(b)(3)(A). 

12 17 CFR 240.19b–4(f)(3). 

13 15 U.S.C. 78s(b)(2)(B). 

14 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. 79793 

(January 13, 2017), 82 FR 7885 (‘‘Notice’’). 

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

American Options would contribute to 

the orderly operation of the Exchange by 

adding clarity and transparency to its 

rules and fee schedule. 

For similar reasons, the Exchange also 

believes that the proposed rule change 

is consistent with Section 6(b)(5) of the 

Act,10 in that it is designed to prevent 

fraudulent and manipulative acts and 

practices, to promote just and equitable 

principles of trade, to foster cooperation 

and coordination with persons engaged 

in facilitating transactions in securities, 

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 Exchange believes that the 

proposed rule change would remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system by 

ensuring that market participants can 

more easily navigate, understand and 

comply with the rules and Options Fee 

Schedule. The Exchange believes that, 

by ensuring that such rules and fee 

schedule accurately reflect the name 

change of its affiliate from NYSE MKT 

to NYSE American and the rebranding 

of NYSE Amex Options to NYSE 

American Options, the proposed rule 

change would reduce potential investor 

or market participant confusion. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

proposed rule change is not intended to 

address competitive issues but rather is 

concerned solely with updating the 

rules, and Options Fee Schedule to 

reflect its affiliate’s name change from 

NYSE MKT to NYSE American and 

rebranding of NYSE Amex Options to 

NYSE American Options. 

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 

The proposed rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act 11 and Rule 19b–4(f)(3) 12

thereunder. At any time within 60 days 

of the filing of the proposed rule change, 

the Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. If the 

Commission takes such action, the 

Commission shall institute proceedings 

under Section 19(b)(2)(B) 13 of the Act to 

determine whether the proposed rule 

change should be approved or 

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–2017–108 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–2017–108. 

This file number should be included on 

the subject line if email is used. To help 

the Commission process and review 

your comments more efficiently, please 

use only one method. The Commission 

will post all comments on the 

Commission’s Internet Web site (http:// 

www.sec.gov/rules/sro.shtml). Copies of 

the submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for Web site viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE., 

Washington, DC 20549 on official 

business days between the hours of 

10:00 a.m. and 3:00 p.m. Copies of the 

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change; 

the Commission does not edit personal 

identifying information from 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR– 

NYSEARCA–2017–108 and should be 

submitted on or before October 16, 

2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority. 14

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–20363 Filed 9–22–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81655; File No. SR– 

NYSEArca–2016–177] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing of 

Amendment No. 4, and Order Granting 

Accelerated Approval of a Proposed 

Rule Change, as Modified by 

Amendment No. 4, Relating to the 

Listing and Trading of Shares of the 

USCF Canadian Crude Oil Index Fund 

Under NYSE Arca Rule 8.200–E 

September 19, 2017. 

I. Introduction 

On December 30, 2016, NYSE Arca, 

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

with the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 

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

Exchange Act of 1934 (‘‘Act’’) 1 and Rule 

19b–4 thereunder,2 a proposed rule 

change to list and trade shares 

(‘‘Shares’’) of the USCF Canadian Crude 

Oil Index Fund (‘‘Fund’’). The proposed 

rule change was published for comment 

in the Federal Register on January 23, 

2017.3 On March 8, 2017, pursuant to 

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

Commission designated a longer period 

within which to approve the proposed 

rule change, disapprove the proposed 

rule change, or institute proceedings to 

determine whether to disapprove the 


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5See Securities Exchange Act Release No. 80180, 

82 FR 13702 (March 14, 2017). 

6See Securities Exchange Act Release No. 80486, 

82 FR 19115 (April 25, 2017). 

7 15 U.S.C. 78s(b)(2). 

8See Securities Exchange Act Release No. 81177, 

82 FR 34716 (July 26, 2017). The Commission 

designated September 20, 2017, as the date by 

which the Commission shall either approve or 

disapprove the proposed rule change. 

9 In Amendment No. 4, which amended and 

replaced the proposed rule change, as modified by 

Amendment Nos. 1, 2, and 3, in its entirety, the 

Exchange: (i) Clarified and provided additional 

information regarding the Fund’s permitted 

holdings; (ii) represented that the Exchange has in 

place a CSSA (as defined herein) with ICE Futures 

Europe and that CME (as defined herein) is a 

member of the ISG (as defined herein); (iii) clarified 

and provided additional information regarding 

creations and redemptions; (iv) clarified and 

provided additional information regarding the 

calculation of the net asset value (‘‘NAV’’) of the 

Fund; (v) clarified the description of the Fund’s IFV 

(as defined herein); (vi) clarified and provided 

additional information regarding the dissemination 

of the Index value, disclosure of the Fund’s 

portfolio holdings, information to be disclosed on 

the Fund’s Web site, and availability of pricing 

information for certain holdings of the Fund; (vii) 

provided additional information regarding 

surveillance of the Shares; (viii) specified the types 

of statements and representations made in the 

proposal that will constitute continued listing 

standards; and (ix) made other technical, nonsubstantive, and conforming changes. Amendment 

No. 4 is available at: https://www.sec.gov/ 

comments/sr-nysearca-2016-177/nysearca2016177- 

2228753-160788.pdf. 

10For a more detailed description of the proposal, 

see Amendment No. 4, supra note 9. 

11The Trust is registered under the Securities Act 

of 1933 (‘‘Securities Act’’). On June 16, 2016, the 

Trust filed with the Commission a registration 

statement on Form S–1 under the Securities Act 

relating to the Fund (File No. 333–212089). 12The Fund will seek to achieve its investment 

objective by investing so that the average daily 

percentage change in the Fund’s NAV for any 

period of 30 successive valuation days will be 

within plus/minus 10% of the average daily 

percentage change in the CCIER over the same 

period. 

13The WCS Future is a monthly cash settled 

future based on the TMX WCS (Western Canadian 

Select) Daily Weighted Average Price Index (‘‘TMX 

WCS 1b Index’’) traded on ICE Futures Europe. The 

TMX WCS 1b Index is expressed as a differential 

to the NYMEX WTI 1st Line Future (Calendar 

Month Average). 

14The WTI Future is the ICE West Texas 

Intermediate (WTI) Light Sweet Crude Oil Futures 

Contract traded on ICE Futures Europe. 

15The Exchange has in place a comprehensive 

surveillance sharing agreement (‘‘CSSA’’) with ICE 

Futures Europe. The CME Group, Inc. (‘‘CME’’), 

with which NYMEX is an affiliate, is a member of 

the Intermarket Surveillance Group (‘‘ISG’’). 

16The Fund will support these investments and 

investments in any other OTC derivatives contracts 

by holding the amounts of its margin, collateral, 

and other requirements relating to these obligations 

in short-term obligations of the United States of two 

years or less (‘‘Treasuries’’), cash, and cash 

equivalents. For purposes of this filing, cash 

equivalents are short-term instruments with 

maturities of less than three months and shall 

include the following: (i) Certificates of deposit 

issued against funds deposited in a bank or savings 

and loan association; (ii) bankers’ acceptances, 

which are short-term credit instruments used to 

finance commercial transactions; (iii) repurchase 

agreements and reverse repurchase agreements; (iv) 

bank time deposits, which are monies kept on 

deposit with banks or savings and loan associations 

for a stated period of time at a fixed rate of interest; 

(v) commercial paper, which are short-term 

unsecured promissory notes; and (vi) money market 

funds. 

proposed rule change.5 On April 19, 

2017, the Commission instituted 

proceedings to determine whether to 

approve or disapprove the proposed 

rule change.6 On May 8, 2017, the 

Exchange filed Amendment No. 1 to the 

proposed rule change. On June 30, 2017, 

the Exchange filed Amendment No. 2 to 

the proposed rule change. On July 13, 

2017, the Exchange filed Amendment 

No. 3 to the proposed rule change. On 

July 20, 2017, pursuant to Section 

19(b)(2) of the Act,7 the Commission 

designated a longer period within which 

to issue an order approving or 

disapproving the proposed rule change.8

On August 18, 2017, the Exchange filed 

Amendment No. 4 to the proposed rule 

change.9 The Commission has received 

no comments on the proposal. The 

Commission is publishing this notice to 

solicit comments on Amendment No. 4 

from interested persons, and is 

approving the proposed rule change, as 

modified by Amendment No. 4, on an 

accelerated basis. 

II. Description of the Proposed Rule 

Change, as Modified by Amendment 

No. 4 10

The Exchange proposes to list and 

trade Shares of the Fund under NYSE 

Arca Rule 8.200–E, Commentary .02, 

which governs the listing and trading of 

Trust Issued Receipts. The Fund is a 

new series of the United States 

Commodity Index Funds Trust 

(‘‘Trust’’).11 The Fund is a commodity 

pool that continuously issues common 

shares of beneficial interest that may be 

purchased and sold on the Exchange. 

The Trust and the Fund are managed 

and controlled by United States 

Commodity Funds LLC (‘‘USCF’’ or 

‘‘Sponsor’’), which is registered as a 

commodity pool operator with the 

Commodity Futures Trading 

Commission and is a member of the 

National Futures Association. Brown 

Brothers Harriman & Co., Inc. will be 

the administrator and custodian for the 

Fund. ALPS Distributors, Inc. will be 

the marketing agent for the Fund. 

According to the Exchange, the 

investment objective of the Fund is for 

the daily changes in percentage terms of 

per Share NAV to reflect the daily 

changes in percentage terms of the 

Canadian Crude Excess Return Index 

(‘‘CCIER’’ or ‘‘Index’’), plus interest 

income from the Fund’s short-term fixed 

income holdings, less the Fund’s 

expenses.12 The Fund will not seek to 

achieve its stated investment objective 

over a period of time greater than one 

day. 

The CCIER is designed to measure the 

performance of the Canadian crude oil 

market. The CCIER targets an exposure 

that represents an approximately 3 

month rolling position in the following 

nearby futures contracts: (i) The ICE 

Crude Diff—TMX WCS 1B Index Future 

(ICE symbol: TDX) (‘‘WCS Future’’) 13

and (ii) the ICE WTI Crude Future (ICE 

symbol: T) (‘‘WTI Future’’).14 The WCS 

Futures and WTI Futures that comprise 

the CCIER are referred to herein as 

‘‘Benchmark Component Futures 

Contracts.’’ 15

The Fund’s Investments 

The Fund will seek to achieve its 

investment objective by first entering 

into cash-settled uncleared over-thecounter (‘‘OTC’’) total return swap and/ 

or forward transactions based on, and 

intended to replicate the return of, the 

CCIER (‘‘Benchmark OTC Derivatives 

Contracts,’’ as described further below), 

and, second, to the extent market 

conditions are more favorable for such 

futures as compared to Benchmark OTC 

Derivatives Contracts, investing in the 

Benchmark Component Futures 

Contracts that underlie the CCIER.16

Third, if constrained by regulatory 

requirements or in view of market 

conditions or if one or more of the other 

Benchmark Component Futures 

Contracts is not available, the Fund may 

next invest in exchange-traded futures 

contracts that are economically identical 

or substantially similar to the 

Benchmark Component Futures 

Contracts. 

When, in view of regulatory 

requirements and market conditions, the 

Fund has invested to the fullest extent 

possible in the Benchmark OTC 

Derivatives Contracts and exchangetraded futures contracts, the Fund may 

then invest in: (i) Cleared swap 

contracts based on the Benchmark 

Component Futures Contracts, (ii) 

uncleared OTC derivatives contracts 

(specifically, swaps, forwards, and 

options) based on either the price of the 

Benchmark Component Futures 

Contracts or on the price of the crude oil 

underlying the Benchmark Component 

Futures Contracts, and (iii) exchangetraded options on the Benchmark 

Component Futures Contracts. These 

investments, together with the 

Benchmark Component Futures 

Contracts and other exchange-traded 

futures contracts that are economically 

identical or substantially similar to the 

Benchmark Component Futures 

Contracts, are referred to collectively as 


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17Market conditions that USCF currently 

anticipates could cause the Fund to invest in Other 

Crude Oil-Related Investments include those 

allowing the Fund to obtain greater liquidity, to 

execute transactions with more favorable pricing, or 

if the Fund or USCF exceeds position limits or 

accountability levels established by an exchange. 

18 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). 

19 15 U.S.C. 78f(b)(5). 

20 15 U.S.C. 78k–1(a)(1)(C)(iii). 

21The Exchange’s Core Trading Session is from 

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

22The IFV will be calculated by using the prior 

day’s closing NAV per Share as a base and updating 

that value throughout the trading day to reflect 

changes in the CCIER based on the most recently 

reported trade prices for the Benchmark Component 

Futures Contracts as reported by Bloomberg, L.P. or 

another reporting service. 

23The contract specifications for the Benchmark 

Component Futures Contracts are also available on 

such Web sites, as well as other financial 

informational sources. 

24The Exchange represents that this Web site 

disclosure of the Fund’s portfolio composition will 

occur at the same time as the disclosure by the 

Sponsor of the portfolio composition to authorized 

participants so that all market participants will be 

‘‘Other Crude Oil-Related 

Investments.’’ 17

Benchmark OTC Derivatives Contracts 

According to the Exchange, the Fund 

will primarily invest in Benchmark OTC 

Derivatives Contracts that are based on 

the CCIER which is comprised of the 

Benchmark Component Futures 

Contracts and, in the opinion of the 

Sponsor, are traded in sufficient volume 

to permit the ready taking and 

liquidation of positions. To reduce the 

counterparty credit risk associated with 

OTC derivatives contracts (including the 

Benchmark OTC Derivatives Contracts), 

the Fund will generally enter into an 

agreement with each counterparty based 

on the Master Agreement published by 

the International Swaps and Derivatives 

Association, Inc. (‘‘ISDA’’) that provides 

for the netting of overall exposure 

between counterparties. In connection 

with the Master Agreements, the 

Sponsor will enter into ISDA Credit 

Support Annexes (‘‘CSAs’’) with its 

counterparties to mitigate counterparty 

credit exposure. 

The Sponsor will assess or review, as 

appropriate, the creditworthiness of 

each potential or existing counterparty 

to an OTC derivatives contract 

(including the Benchmark OTC 

Derivatives Contracts) pursuant to 

guidelines approved by the Sponsor’s 

board. In respect of the OTC derivatives 

contracts, the Fund will have the ability 

to replace a counterparty or engage 

additional counterparties at any time. 

The Fund may also enter into 

multiple Benchmark OTC Derivatives 

Contracts for the purpose of achieving 

its investment objective. If a Benchmark 

OTC Derivatives Contract is terminated, 

the Fund may either pursue the same or 

other alternative investment strategies 

with an acceptable counterparty, or 

make direct investments in the 

Benchmark Component Futures 

Contracts or other investments 

described above that provide a similar 

return to investing in the Benchmark 

Component Futures Contracts. 

The Fund may also enter into certain 

transactions where an OTC derivatives 

contract component is exchanged for a 

corresponding futures contract (an 

‘‘Exchange for Related Position’’ or 

‘‘EFRP’’ transaction). The Fund may 

also employ spreads or straddles in its 

trading to mitigate the differences in its 

investment portfolio and its goal of 

tracking the price of the Benchmark 

Component Futures Contracts. 

III. Discussion and Commission 

Findings 

After careful review, the Commission 

finds that the proposed rule change, as 

modified by Amendment No. 4, is 

consistent with the Act and the rules 

and regulations thereunder applicable to 

a national securities exchange.18 In 

particular, the Commission finds that 

the proposal is consistent with Section 

6(b)(5) of the Act,19 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 also finds that the proposal 

is consistent with Section 

11A(a)(1)(C)(iii) of the Act,20 which sets 

forth Congress’s 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. 

According to the Exchange, quotation 

and last-sale information for the Shares 

will be disseminated through the 

facilities of the Consolidated Tape 

Association. The Indicative Fund Value 

(‘‘IFV’’) will be disseminated on a perShare basis every 15 seconds during the 

Exchange’s Core Trading Session,21 and 

will be available through on-line 

information services.22 In addition, the 

value of the Index will be updated, and 

disseminated by one or more major 

market data vendors, at least every 15 

seconds during the Exchange’s Core 

Trading Session. The Exchange 

represents that the NAV for a normal 

trading day will be released after 4:00 

p.m. E.T., and the NAV will be 

disseminated daily to all market 

participants at the same time. 

The Exchange represents that the 

intraday, closing, and settlement prices 

of the Benchmark Component Futures 

Contracts will be readily available from 

automated quotation systems, published 

or other public sources, or major market 

data vendors. Also, complete real-time 

data for the Benchmark Component 

Futures Contracts and other futures 

contracts is available by subscription 

from major market data vendors. ICE 

Futures Europe and other futures 

exchanges also provide delayed futures 

information on current and past trading 

sessions and market news free of charge 

on their Web sites.23 Intraday and 

closing price information for exchangetraded options will be available from the 

applicable exchange and from major 

market data vendors. In addition, 

intraday price information for U.S. 

exchange-traded options is available 

from the Options Price Reporting 

Authority. Intraday price information 

for OTC options, forwards, and OTC 

swaps may be directly available or 

determined by reference to the 

underlying future, index, or asset price 

available from major market data 

vendors. Intraday and closing price 

information for cleared swaps will be 

available from the applicable 

clearinghouse and from major market 

data vendors. Intraday and closing price 

information regarding U.S. Treasuries 

and cash equivalents will be available 

from major market data vendors. 

According to the Exchange, the daily 

holdings of the Fund will be available 

on the Fund’s Web site before 9:30 a.m. 

E.T., and the disclosure of portfolio 

holdings will include, as applicable: (i) 

The composite value of the total 

portfolio; (ii) the quantity and type 

(including maturity, effective date, 

ticker symbol, or other identifier, if any) 

and other descriptive information, and 

value of each holding, including, in the 

case of an OTC derivatives contract, the 

type of OTC derivatives contract, its 

notional value, and the underlying 

instrument, index, or asset on which the 

OTC derivatives contract is based, and 

in the case of options, its strike price; 

(iii) the type (including maturity, 

effective date, ticker symbol, or other 

identifier, if any) and value of each 

Treasury security and cash equivalent; 

and (iv) the amount of cash held in the 

Fund’s portfolio.24 The Exchange 


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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. 

25The Exchange states that FINRA conducts 

cross-market surveillances on behalf of the 

Exchange pursuant to a regulatory services 

agreement, and that the Exchange is responsible for 

FINRA’s performance under this regulatory services 

agreement. 26 17 CFR 240.10A–3. 

further represents that the Fund’s Web 

site, which will be publicly available 

prior to the public offering of Shares, 

will include a form of the prospectus for 

the Fund that may be downloaded, as 

well as additional quantitative 

information, including information 

relating to NAV, updated on a daily 

basis. 

The Commission also believes that the 

proposal to list and trade the Shares is 

reasonably designed to promote fair 

disclosure of information that may be 

necessary to price the 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. 

Further, the Exchange may halt trading 

during the day in which an interruption 

to the dissemination of the IFV or the 

value of the Index occurs. If the 

interruption to the dissemination of the 

IFV or the value of the Index 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. 

Trading in Shares of the Fund will be 

halted if the circuit breaker parameters 

in NYSE Arca Rule 7.12–E have been 

reached. Moreover, trading may be 

halted because of market conditions or 

for reasons that, in the view of the 

Exchange, make trading in the Shares 

inadvisable. The Exchange represents 

that it has a general policy prohibiting 

the distribution of material, non-public 

information by its employees. 

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. In support of this 

proposal, the Exchange has made 

certain representations, including the 

following: 

(1) The Shares will conform to the 

initial and continued listing criteria 

under NYSE Arca Rule 8.200–E. The 

trading of the Shares will be subject to 

NYSE Arca Rule 8.200–E, Commentary 

.02(e), which sets forth certain 

restrictions on Equity Trading Permit 

holders (‘‘ETP Holders’’) acting as 

registered market makers in Trust Issued 

Receipts to facilitate surveillance. 

(2) The Exchange has appropriate 

rules to facilitate transactions in the 

Shares during all trading sessions. 

(3) To reduce the counterparty credit 

risk associated with OTC derivatives 

contracts, the Fund will generally enter 

into an agreement with each 

counterparty based on the ISDA Master 

Agreement. In connection with the 

Master Agreements, the Sponsor will 

enter into ISDA CSAs with its 

counterparties to mitigate counterparty 

credit exposure. 

(4) The Sponsor will assess or review, 

as appropriate, the creditworthiness of 

each potential or existing counterparty 

to an OTC derivatives contract pursuant 

to guidelines approved by the Sponsor’s 

board. In respect of the OTC derivatives 

contracts, the Fund will have the ability 

to replace a counterparty or engage 

additional counterparties at any time. 

(5) Trading in the Shares will be 

subject to the existing trading 

surveillances administered by the 

Exchange, as well as cross-market 

surveillances administered by the 

Financial Industry Regulatory Authority 

(‘‘FINRA’’) on behalf of the Exchange, 

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 applicable federal securities 

laws.25

(6) The Exchange or FINRA, on behalf 

of the Exchange, or both, will 

communicate as needed regarding 

trading in the Shares, the Benchmark 

Component Futures Contracts and 

certain other futures, and options on 

futures with other markets and other 

entities that are members of the ISG, and 

the Exchange or FINRA, on behalf of the 

Exchange, or both, may obtain trading 

information regarding trading in the 

Shares, the Benchmark Component 

Futures Contracts and certain other 

futures, and options on futures from 

such markets and other entities. In 

addition, the Exchange may obtain 

information regarding trading in the 

Shares, the Benchmark Component 

Futures Contracts and certain other 

futures, and options on futures from 

markets and other entities that are 

members of the ISG or with which the 

Exchange has in place a CSSA. 

(7) The Exchange is able to obtain 

information regarding trading in the 

Shares, the physical commodities 

underlying the futures contracts and 

other derivative instruments through 

ETP Holders, in connection with such 

ETP Holders’ proprietary or customer 

trades which they effect through ETP 

Holders on any relevant market. The 

Exchange can obtain market 

surveillance information, including 

customer identity information, with 

respect to transactions (including 

transactions in futures contracts and 

options on futures) occurring on U.S. 

futures exchanges, which are members 

of the ISG. 

(8) The Exchange has in place a CSSA 

with ICE Futures Europe. CME, with 

which NYMEX is an affiliate, is a 

member of the ISG. Not more than 10% 

of the net assets of the Fund in the 

aggregate invested in futures contracts 

or options on futures shall consist of 

futures contracts or options on futures 

whose principal market is not a member 

of the ISG or is a market with which the 

Exchange does not have a CSSA. 

(9) 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 Information Bulletin 

will discuss the following: (i) The risks 

involved in trading the Shares during 

the Opening and Late Trading Sessions 

when an updated IFV will not be 

calculated or publicly disseminated; (ii) 

the procedures for purchases and 

redemptions of Shares in creation 

baskets and redemption baskets (and 

that Shares are not individually 

redeemable); (iii) NYSE Arca Rule 9.2– 

E(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; (iv) how 

information regarding the IFV is 

disseminated; (v) how information 

regarding portfolio holdings is 

disseminated; (vi) 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 (vii) 

trading information. 

(10) For initial and continued listing, 

the Fund will be in compliance with 

Rule 10A–3 under the Act,26 as 

provided by NYSE Arca Rule 5.3–E. 

(11) A minimum of 100,000 Shares of 

the Fund will be outstanding at the start 

of trading on the Exchange. 

The Exchange represents that all 

statements and representations made in 

the filing regarding (a) the description of 

the portfolio and the Index, (b) 

limitations on portfolio holdings or with 

respect to the Index, or (c) applicability 

of Exchange listing rules specified in the 

filing shall constitute continued listing 


asabaliauskas on DSKBBXCHB2PROD with NOTICES
44682 Federal Register / Vol. 82, No. 184 / Monday, September 25, 2017 / Notices 

27The Commission notes that certain proposals 

for the listing and trading of exchange-traded 

products include a representation that the exchange 

will ‘‘surveil’’ for compliance with the continued 

listing requirements. See, e.g., Securities Exchange 

Act Release No. 77499 (April 1, 2016), 81 FR 20428, 

20432 (April 7, 2016) (SR–BATS–2016–04). In the 

context of this representation, it is the 

Commission’s view that ‘‘monitor’’ and ‘‘surveil’’ 

both mean ongoing oversight of compliance with 

the continued listing requirements. Therefore, the 

Commission does not view ‘‘monitor’’ as a more or 

less stringent obligation than ‘‘surveil’’ with respect 

to the continued listing requirements. 

28 15 U.S.C. 78f(b)(5). 

29 15 U.S.C. 78k–1(a)(1)(C)(iii). 

30See Amendment No. 4, supra note 9. 

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

32 Id. 

33 17 CFR 200.30–3(a)(12). 

requirements for listing the Shares of 

the Fund on the Exchange. In addition, 

the issuer has represented to the 

Exchange that it will advise the 

Exchange of any failure by the Fund to 

comply with the continued listing 

requirements, and, pursuant to its 

obligations under Section 19(g)(1) of the 

Act, the Exchange will monitor 27 for 

compliance with the continued listing 

requirements. If the Fund is not in 

compliance with the applicable listing 

requirements, the Exchange will 

commence delisting procedures under 

NYSE Arca Rule 5.5–E(m). This 

approval order is based on all of the 

Exchange’s statements and 

representations, including those set 

forth above and in Amendment No. 4. 

For the foregoing reasons, the 

Commission finds that the proposed 

rule change, as modified by Amendment 

No. 4, is consistent with Section 6(b)(5) 

of the Act 28 and Section 

11A(a)(1)(C)(iii) of the Act 29 and the 

rules and regulations thereunder 

applicable to a national securities 

exchange. 

IV. Solicitation of Comments on 

Amendment No. 4 to the Proposed Rule 

Change 

Interested persons are invited to 

submit written data, views, and 

arguments concerning whether 

Amendment No. 4 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-2016–177 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–2016–177. This 

file number should be included on the 

subject line if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

Internet Web site (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for Web site viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE., 

Washington, DC 20549, on official 

business days between the hours of 

10:00 a.m. and 3:00 p.m. Copies of the 

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change; 

the Commission does not edit personal 

identifying information from 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR– 

NYSEArca–2016–177, and should be 

submitted on or before October 16, 

2017. 

V. Accelerated Approval of Proposed 

Rule Change, as Modified by 

Amendment No. 4 

The Commission finds good cause to 

approve the proposed rule change, as 

modified by Amendment No. 4, prior to 

the thirtieth day after the date of 

publication of notice of the filing of 

Amendment No. 4 in the Federal 

Register. The Commission believes that 

Amendment No. 4 supplements the 

proposed rule change by providing 

clarification, specificity, and additional 

information about the Fund and the 

Shares.30 The changes and additional 

information helped the Commission to 

evaluate the Shares’ susceptibility to 

manipulation and the Exchange’s ability 

to investigate possible manipulative 

activity, and whether the listing and 

trading of the Shares would be 

consistent with the protection of 

investors and the public interest. 

Accordingly, the Commission finds 

good cause, pursuant to Section 19(b)(2) 

of the Act,31 to approve the proposed 

rule change, as modified by Amendment 

No. 4, on an accelerated basis. 

VI. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,32 that the 

proposed rule change (SR–NYSEArca– 

2016–177), as modified by Amendment 

No. 4 be, and it hereby is, approved on 

an accelerated basis. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.33

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–20365 Filed 9–22–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Submission for OMB Review; 

Comment Request 

Upon Written Request, Copies Available 

From: Securities and Exchange 

Commission, Office of FOIA Services, 

100 F Street NE., Washington, DC 

20549–2736 

Extension: 

Rule 0–2, Form ADV–NR, [SEC File No. 

270–214, OMB Control No. 3235–0240] 

Notice is hereby given that, pursuant 

to the Paperwork Reduction Act of 1995 

(44 U.S.C. 3501 et seq.), the Securities 

and Exchange Commission 

(‘‘Commission’’) has submitted to the 

Office of Management and Budget a 

request for extension of the previously 

approved collection of information 

discussed below. 

The title for the collection of 

information is ‘‘Rule 0–2 and Form 

ADV–NR under the Investment Advisers 

Act of 1940.’’ Rule 0–2 and Form ADV– 

NR facilitate service of process to nonresident investment advisers and 

exempt reporting advisers and their 

non-resident general partners or nonresident managing agents. The Form 

requires these persons to designate the 

Commission as agent for service of 

process. The purpose of this collection 

of information is to obtain appropriate 

consent to permit the Commission and 

other parties to bring actions against 

non-resident partners and agents for 

violations of the federal securities laws 

and to enable the commencement of 

legal and/or regulatory actions against 

investment advisers that are doing 

business in the United States, but are 

not residents. 

The respondents to this information 

collection would be each non-resident 


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