45634 Federal Register / Vol. 82, No. 188 / Friday, September 29, 2017 / Notices 

18For purposes only of waiving the 30-day 

operative delay, the Commission also has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

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

19 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. 79989 

(February 8, 2017), 82 FR 10615. 

4Amendment No. 1 is available at: https://

www.sec.gov/comments/sr-batsbzx-2017-07/ 

batsbzx201707-1667531-148997.pdf. 

5See Securities Exchange Act Release No. 80350, 

82 FR 16647 (April 5, 2017). 

6See Securities Exchange Act Release No. 80664, 

82 FR 22680 (May 17, 2017). 

7See Securities Exchange Act Release No. 81363, 

82 FR 38726 (August 15, 2017). 

8 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. 

proposed rule change operative upon 

filing.18

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 

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–2017–96 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Brent J. Fields, Secretary, Securities 

and Exchange Commission, 100 F Street 

NE., Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–NYSEArca–2017–96. 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–2017–96, and should be 

submitted on or before October 20, 

2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.19

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–20892 Filed 9–28–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81715; File No. SR– 

BatsBZX–2017–07] 

Self-Regulatory Organizations; Bats 

BZX Exchange, Inc.; Notice of 

Withdrawal of a Proposed Rule 

Change, as Modified by Amendment 

No. 1, To List and Trade Under BZX 

Rule 14.11(c)(4) the Shares of the 

VanEck Vectors AMT-Free National 

Municipal Index ETF of VanEck 

Vectors ETF Trust 

September 25, 2017. 

On January 27, 2017, Bats BZX 

Exchange, Inc. (‘‘Exchange’’) filed with 

the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 

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

Exchange Act of 1934 1 and Rule 19b– 

4 thereunder,2 a proposed rule change 

to list and trade under BZX Rule 

14.11(c)(4) shares of the VanEck Vectors 

AMT-Free National Municipal Index 

ETF of VanEck Vectors ETF Trust. The 

proposed rule change was published for 

comment in the Federal Register on 

February 14, 2017.3 On March 10, 2017, 

the Exchange filed Amendment No. 1 to 

the proposed rule change.4 On March 

30, 2017, 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 proposed rule change.5

On May 11, 2017, the Commission 

instituted proceedings to determine 

whether to approve or disapprove the 

proposed rule change.6 On August 9, 

2017, the Commission issued a notice of 

designation of a longer period for 

Commission action on proceedings to 

determine whether to approve or 

disapprove the proposed rule change.7

The Commission received no comments 

on the proposed rule change. 

On September 21, 2017, the Exchange 

withdrew the proposed rule change 

(SR–BatsBZX–2017–07). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–20890 Filed 9–28–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81699; File No. SR– 

NYSEArca–2017–111] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing of Proposed 

Rule Change To List and Trade Shares 

of the GraniteShares Silver Trust 

Under NYSE Arca Equities Rule 8.201 

September 25, 2017. 

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 

September 12, 2017, 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 GraniteShares Silver 

Trust under NYSE Arca Equities Rule 


asabaliauskas on DSKBBXCHB2PROD with NOTICES
Federal Register / Vol. 82, No. 188 / Friday, September 29, 2017 / Notices 45635 

4On September 8, 2017, the Trust submitted to 

the Commission its draft registration statement on 

Form S–1 (the ‘‘Registration Statement’’) under the 

Securities Act of 1933 (15 U.S.C. 77a) (‘‘Securities 

Act’’). The Jumpstart Our Business Startups Act, 

enacted on April 5, 2012, added Section 6(e) to the 

Securities Act. Section 6(e) of the Securities Act 

provides that an ‘‘emerging growth company’’ may 

confidentially submit to the Commission a draft 

registration statement for confidential, non-public 

review by the Commission staff prior to public 

filing, provided that the initial confidential 

submission and all amendments thereto shall be 

publicly filed not later than 21 days before the date 

on which the issuer conducts a road show, as such 

term is defined in Securities Act Rule 433(h)(4). An 

emerging growth company is defined in Section 

2(a)(19) of the Securities Act as an issuer with less 

than $1,000,000,000 total annual gross revenues 

during its most recently completed fiscal year. The 

Trust meets the definition of an emerging growth 

company and consequently has submitted its Form 

S–1 Registration Statement on a confidential basis 

with the Commission. 

5Commodity-Based Trust Shares are securities 

issued by a trust that represents investors’ discrete 

identifiable and undivided beneficial ownership 

interest in the commodities deposited into the 

Trust. 

6 15 U.S.C. 80a–1. 

7 17 U.S.C. 1. 

8The Trustee is responsible for the day-to-day 

administration of the Trust. The responsibilities of 

the Trustee include (1) processing orders for the 

creation and redemption of Baskets; (2) 

coordinating with the Custodian the receipt and 

delivery of silver transferred to, or by, the Trust in 

connection with each issuance and redemption of 

Baskets; (3) calculating the net asset value of the 

Trust on each business day; and (4) selling the 

Trust’s silver as needed to cover the Trust’s 

expenses. The Trust does not have a Board of 

Directors or persons acting in a similar capacity. 

9The Custodian is responsible for safekeeping the 

silver owned by the Trust. The Custodian is 

appointed by the Trustee and is responsible to the 

Trustee under the Trust’s silver custody 

agreements. The Custodian will facilitate the 

transfer of silver in and out of the Trust through the 

unallocated silver accounts it may maintain for 

each Authorized Participant or unallocated silver 

accounts that may be maintained for an Authorized 

Participant by another silver-clearing bank 

approved by the London Bullion Market 

Association (‘‘LBMA’’), and through the unallocated 

silver account it will maintain for the Trust. The 

Custodian is responsible for allocating specific bars 

of silver to the Trust Allocated Account. As used 

herein, ‘‘Trust Allocated Account’’ means the loco 

London account established in the name of the 

Trustee and maintained for the benefit of the Trust 

by the Custodian on an allocated basis pursuant to 

a written custody agreement between the Trustee 

and the Custodian. The Custodian will provide the 

Trustee with regular reports detailing the silver 

transfers in and out of the Trust Unallocated 

Account with the Custodian and identifying the 

silver bars held in the Trust Allocated Account. 

10See Securities Exchange Act Release No. 58956 

(November 14, 2008), 73 FR 71074 (November 24, 

2008) (SR–NYSEArca–2008–124). 11See Securities Exchange Act Release No. 59781 

(April 14, 2009), 74 FR 18771 (April 24, 2009) (SR– 

NYSEArca–2009–28). 12See Securities Exchange Act Release No. 63043 

(October 5, 2010), 75 FR 62615 (October 12, 2010) 

(SR–NYSEArca–2010–84). 13With respect to the application of Rule 10A– 

3 (17 CFR 240.10A–3) under the Act, the Trust 

relies on the exemption contained in Rule 10A– 

3(c)(7). 

14The description of the operation of the Trust, 

the Shares and the silver market contained herein 

are based, in part, on the Registration Statement. 

See note 4, supra. 

8.201. The proposed 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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to list and 

trade shares (‘‘Shares’’) of the 

GraniteShares Silver Trust (the ‘‘Trust’’), 

under NYSE Arca Equities Rule 8.201.4

Under NYSE Arca Equities Rule 8.201, 

the Exchange may propose to list and/ 

or trade pursuant to unlisted trading 

privileges (‘‘UTP’’) Commodity-Based 

Trust Shares.5

The Trust will not be registered as an 

investment company under the 

Investment Company Act of 1940, as 

amended,6 and is not required to 

register under such act. The Trust is not 

a commodity pool for purposes of the 

Commodity Exchange Act, as amended.7

The Sponsor of the Trust is 

GraniteShares LLC, a Delaware limited 

liability company. The Bank of New 

York Mellon is the trustee of the Trust 

(the ‘‘Trustee’’) 8 and ICBC Standard 

Bank PLC is the custodian of the Trust 

(the ‘‘Custodian’’).9

The Commission has previously 

approved listing on the Exchange under 

NYSE Arca Equities Rule 8.201 of other 

precious metals and silver-based 

commodity trusts, including the iShares 

Silver Trust,10 the ETFS Silver Trust,11

and the Sprott Physical Silver Trust.12

The Exchange represents that the 

Shares satisfy the requirements of NYSE 

Arca Equities Rule 8.201 and thereby 

qualify for listing on the Exchange.13

Operation of the Trust 14

The investment objective of the Trust 

will be for the Shares to reflect the 

performance of the price of silver, less 

the expenses and liabilities of the Trust. 

The Trust will issue Shares which 

represent units of fractional undivided 

beneficial interest in and ownership of 

the Trust. 

The Trust will not trade in silver 

futures or options on any futures 

exchange or over the counter (‘‘OTC’’) 

transactions in forwards, options and 

other derivatives. The Trust will not 

hold or trade in commodity futures 

contracts, ‘‘commodity interests’’, or any 

other instruments regulated by the 

Commodities Exchange Act. The Trust 

will take delivery of physical silver that 

complies with the LBMA silver delivery 

rules. 

The Shares are intended to constitute 

a simple and cost-effective means of 

making an investment similar to an 

investment in silver. Although the 

Shares are not the exact equivalent of an 

investment in silver, they provide 

investors with an alternative that allows 

a level of participation in the silver 

market through the securities market. 

Operation of the Silver Market 

The global trade in silver consists of 

OTC transactions in spot, forwards, and 

options and other derivatives, together 

with exchange traded futures and 

options. 

The OTC silver market includes spot, 

forward, and option and other 

derivative transactions conducted on a 

principal-to-principal basis. While this 

is a global, nearly 24-hour per day 

market, its main centers are London (the 

biggest venue), New York and Zurich. 

According to the LBMA, the trade 

association that acts as the coordinator 

for activities conducted on behalf of its 

members and other participants in the 

London bullion market, members of the 

LBMA act as OTC market makers and it 

is believed that most OTC market trades 

are cleared through London. The LBMA 

plays an important role in setting OTC 

silver trading industry standards. 

Members of the London bullion market 

typically trade with each other and with 

their clients on a principal-to-principal 

basis. All risks, including those of 

credit, are between the two parties to a 

transaction. This is known as an OTC 

market, as opposed to an exchangetraded environment. Unlike a futures 

exchange, where trading is based 

around standard contract units, 

settlement dates and delivery 

specifications, the OTC market allows 

flexibility. It also provides 

confidentiality, as transactions are 

conducted solely between the two 

principals involved. 


asabaliauskas on DSKBBXCHB2PROD with NOTICES
45636 Federal Register / Vol. 82, No. 188 / Friday, September 29, 2017 / Notices 

15See http://www.icap.com. 

Creation and Redemption of Shares 

The Trust will create and redeem 

Shares on a continuous basis in one or 

more blocks of 50,000 Shares (a block of 

50,000 Shares is called a ‘‘Basket’’). As 

described below, the Trust will issue 

Shares in Baskets to certain authorized 

participants (‘‘Authorized Participants’’) 

on an ongoing basis. Baskets of Shares 

will only be issued or redeemed in 

exchange for an amount of silver 

represented by the aggregate number of 

Shares redeemed. No Shares will be 

issued unless the Custodian has 

allocated to the Trust’s account the 

corresponding amount of silver. 

Initially, a Basket will require delivery 

of 50,000 fine ounces of silver. The 

amount of silver necessary for the 

creation of a Basket, or to be received 

upon redemption of a Basket, will 

decrease over the life of the Trust, due 

to the payment or accrual of fees and 

other expenses or liabilities payable by 

the Trust. 

Baskets may be created or redeemed 

only by Authorized Participants. Orders 

must be placed by 3:59 p.m. Eastern 

Time (‘‘E.T.’’). The day on which a Trust 

receives a valid purchase or redemption 

order is the order date. 

Each Authorized Participant must be 

a registered broker-dealer, a participant 

in Depository Trust Corporation 

(‘‘DTC’’), have entered into an 

agreement with the Trustee (the 

‘‘Authorized Participant Agreement’’) 

and have established a silver 

unallocated account with the Custodian 

or a physical silver clearing bank. The 

Authorized Participant Agreement 

provides the procedures for the creation 

and redemption of Baskets and for the 

delivery of silver in connection with 

such creations or redemptions. 

According to the Registration 

Statement, Authorized Participants may 

surrender Baskets of Shares in exchange 

for the corresponding Basket Amount 

announced by the Trustee. Upon 

surrender of such Shares and payment 

of the Trustee’s applicable fee and of 

any expenses, taxes or charges (such as 

stamp taxes or stock transfer taxes or 

fees), the Trustee will deliver to the 

order of the redeeming Authorized 

Participant the amount of silver 

corresponding to the redeemed Baskets. 

Shares can only be surrendered for 

redemption in Baskets of 50,000 Shares 

each. 

Before surrendering Baskets of Shares 

for redemption, an Authorized 

Participant must deliver to the Trustee 

a written request indicating the number 

of Baskets it intends to redeem. The date 

the Trustee receives that order 

determines the Basket Amount to be 

received in exchange. However, orders 

received by the Trustee after 3:59 p.m. 

E.T. on a business day or on a business 

day when the LBMA Silver Price or 

other applicable benchmark price is not 

announced, will not be accepted. 

The redemption distribution from the 

Trust will consist of a credit to the 

redeeming Authorized Participant’s 

unallocated account representing the 

amount of the silver held by the Trust 

evidenced by the Shares being 

redeemed as of the date of the 

redemption order. 

Net Asset Value 

The NAV of the Trust will be 

calculated by subtracting the Trust’s 

expenses and liabilities on any day from 

the value of the silver owned by the 

Trust on that day; the NAV per Share 

will be obtained by dividing the NAV of 

the Trust on a given day by the number 

of Shares outstanding on that day. On 

each day on which the Exchange is open 

for regular trading, the Trustee will 

determine the NAV as promptly as 

practicable after 4:00 p.m. E.T. The 

Trustee will value the Trust’s silver 

based on the most recently announced 

LBMA Silver Price. If the Sponsor 

determines that such price is 

inappropriate to use, the Sponsor will 

identify an alternate basis for evaluation 

to be employed by the Trustee. Further, 

the Sponsor may instruct the Trustee to 

use on an on-going basis a different 

publicly available price which the 

Sponsor determines to fairly represent 

the commercial value of the Trust’s 

silver. 

The NAV per Share will be calculated 

by taking the current price of the Trust’s 

total assets, subtracting any liabilities, 

and dividing by the total number of 

Shares outstanding. Authorized 

Participants will offer Shares at an 

offering price that will vary, depending 

on, among other factors, the price of 

silver and the trading price of the Shares 

on the Exchange at the time of offer. 

Authorized Participants will not receive 

from the Trust, the Sponsor, the Trustee 

or any of their affiliates any fee or other 

compensation in connection with the 

offering of the Shares. 

Secondary Market Trading 

While the Trust seeks to reflect 

generally the performance of the price of 

silver less the Trust’s expenses and 

liabilities, Shares may trade at, above or 

below their NAV. The NAV of Shares 

will fluctuate with changes in the 

market value of the Trust’s assets. The 

trading prices of Shares will fluctuate in 

accordance with changes in their NAV 

as well as market supply and demand. 

The amount of the discount or premium 

in the trading price relative to the NAV 

may be influenced by non-concurrent 

trading hours between the major silver 

markets and the Exchange. While the 

Shares trade on the Exchange until 4:00 

p.m. E.T., liquidity in the market for 

silver may be reduced after the close of 

the major world silver markets, 

including London, Zurich and COMEX. 

As a result, during this time, trading 

spreads, and the resulting premium or 

discount, on Shares may widen. 

Availability of Information Regarding 

Silver 

Currently, the Consolidated Tape Plan 

does not provide for dissemination of 

the spot price of a commodity such as 

silver over the Consolidated Tape. 

However, there will be disseminated 

over the Consolidated Tape the last sale 

price for the Shares, as is the case for 

all equity securities traded on the 

Exchange (including exchange-traded 

funds). In addition, there is a 

considerable amount of silver price and 

market information available on public 

Web sites and through professional and 

subscription services. 

Investors may obtain silver pricing 

information on a 24-hour basis based on 

the spot price for an ounce of silver 

from various financial information 

service providers, such as Reuters and 

Bloomberg. In addition, ICAP’s EBS 

platform also provides an electronic 

trading platform to institutions such as 

bullion banks and dealers for the trading 

of spot silver, as well as a feed of live 

streaming prices to market data 

subscribers.15

Reuters and Bloomberg provide at no 

charge on their Web sites delayed 

information regarding the spot price of 

silver and last sale prices of silver 

futures, as well as information about 

news and developments in the silver 

market. Reuters and Bloomberg also 

offer a professional service to 

subscribers for a fee that provides 

information on silver prices directly 

from market participants. 

Complete real-time data for silver 

futures and options prices traded on the 

COMEX are available by subscription 

from Reuters and Bloomberg. The 

NYMEX also provides delayed futures 

and options information on current and 

past trading sessions and market news 

free of charge on its Web site. There are 

a variety of other public Web sites 

providing information on silver, ranging 

from those specializing in precious 

metals to sites maintained by major 

newspapers, such as The Wall Street 

Journal. Current silver spot prices are 


asabaliauskas on DSKBBXCHB2PROD with NOTICES
Federal Register / Vol. 82, No. 188 / Friday, September 29, 2017 / Notices 45637 

16The silver spot price is indicative only, 

constructed using a variety of sources to compile a 

spot price that is intended to represent a theoretical 

quote that might be obtained from a market maker 

from time to time. 

17The IIV on a per Share basis disseminated 

during the Core Trading Session should not be 

viewed as a real-time update of the NAV, which is 

calculated once a day. 

18The bid-ask price of the Shares will be 

determined using the highest bid and lowest offer 

on the Consolidated Tape as of the time of 

calculation of the closing day NAV. 

19See NYSE Arca Equities Rule 7.12. 

20FINRA conducts cross-market surveillances on 

behalf of the Exchange pursuant to a regulatory 

services agreement. The Exchange is responsible for 

FINRA’s performance under this regulatory services 

agreement. 

also generally available with bid/ask 

spreads from silver bullion dealers.16

Availability of Information 

The intraday indicative value (‘‘IIV’’) 

per Share for the Shares will be 

disseminated by one or more major 

market data vendors at least every 15 

seconds during the Core Trading 

Session. The IIV will be calculated 

based on the amount of silver held by 

the Trust and a price of silver derived 

from updated bids and offers indicative 

of the spot price of silver.17

The Web site for the Trust 

(www.graniteshares.com) will contain 

the following information, on a per 

Share basis, for the Trust: (a) The midpoint of the bid-ask price 18 at the close 

of trading (‘‘Bid/Ask Price’’), and a 

calculation of the premium or discount 

of such price against such NAV; and (b) 

data in chart format 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. The Web site for the Trust will 

also provide the Trust’s prospectus. 

Finally, the Trust’s Web site will 

provide the prior day’s closing price of 

the Shares as traded in the U.S. market. 

In addition, 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. 

Criteria for Initial and Continued Listing 

The Trust will be subject to the 

criteria in NYSE Arca Equities Rule 

8.201(e) for initial and continued listing 

of the Shares. 

A minimum of one Basket or 50,000 

Shares will be required to be 

outstanding at the start of trading, 

which is equivalent to 50,000 fine 

ounces of silver. The Exchange believes 

that the anticipated minimum number 

of Shares outstanding at the start of 

trading is sufficient to provide adequate 

market liquidity. 

Trading Rules 

The Exchange deems the Shares to be 

equity securities, thus rendering trading 

in the Trust subject to the Exchange’s 

existing rules governing the trading of 

equity securities. Trading in the Shares 

on the Exchange will occur in 

accordance with NYSE Arca Equities 

Rule 7.34(a). 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’’) 

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. 

Further, NYSE Arca Equities Rule 

8.201 sets forth certain restrictions on 

ETP Holders acting as registered Market 

Makers in the Shares to facilitate 

surveillance. Under NYSE Arca Equities 

Rule 8.201(g), an ETP Holder acting as 

a registered Market Maker in the Shares 

is required to provide the Exchange 

with information relating to its trading 

in the underlying silver, related futures 

or options on futures, or any other 

related derivatives. Commentary .04 of 

NYSE Arca Equities Rule 6.3 requires an 

ETP Holder acting as a registered Market 

Maker, and its affiliates, in the Shares to 

establish, maintain and enforce written 

policies and procedures reasonably 

designed to prevent the misuse of any 

material nonpublic information with 

respect to such products, any 

components of the related products, any 

physical asset or commodity underlying 

the product, applicable currencies, 

underlying indexes, related futures or 

options on futures, and any related 

derivative instruments (including the 

Shares). 

As a general matter, the Exchange has 

regulatory jurisdiction over its ETP 

Holders and their associated persons, 

which include any person or entity 

controlling an ETP Holder. A subsidiary 

or affiliate of an ETP Holder that does 

business only in commodities or futures 

contracts would not be subject to 

Exchange jurisdiction, but the Exchange 

could obtain information regarding the 

activities of such subsidiary or affiliate 

through surveillance sharing agreements 

with regulatory organizations of which 

such subsidiary or affiliate is a member. 

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 on the Exchange in the Shares 

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 

conditions in the underlying silver 

market have caused disruptions and/or 

lack of trading, 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.19 The Exchange will halt trading in 

the Shares if the NAV of the Trust is not 

calculated or disseminated daily. The 

Exchange may halt trading during the 

day in which an interruption occurs to 

the dissemination of the IIV, as 

described above. If the interruption to 

the dissemination of the IIV persists 

past the trading day in which it occurs, 

the Exchange will halt trading no later 

than the beginning of the trading day 

following the interruption. 

Surveillance 

The Exchange represents that 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, which are 

designed to detect violations of 

Exchange rules and applicable federal 

securities laws.20 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. 

The Exchange or FINRA, on behalf of 

the Exchange, or both, will 

communicate as needed regarding 

trading in the Shares 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 


asabaliauskas on DSKBBXCHB2PROD with NOTICES
45638 Federal Register / Vol. 82, No. 188 / Friday, September 29, 2017 / Notices 

21For a list of the current members of ISG, see 

www.isgportal.org. 22 15 U.S.C. 78f(b)(5). 

obtain trading information regarding 

trading in the Shares from such markets 

and other entities. In addition, the 

Exchange may obtain information 

regarding trading in the Shares from 

markets and other entities that are 

members of ISG or with which the 

Exchange has in place a comprehensive 

surveillance sharing agreement.21

Also, pursuant to NYSE Arca Equities 

Rule 8.201(g), the Exchange is able to 

obtain information regarding trading in 

the Shares and the underlying silver, 

silver futures contracts, options on 

silver futures, or any other silver 

derivative, through ETP Holders acting 

as registered Market Makers, in 

connection with such ETP Holders’ 

proprietary or customer trades through 

ETP Holders which they effect on any 

relevant market. 

In addition, the Exchange also has a 

general policy prohibiting the 

distribution of material, non-public 

information by its employees. 

All statements and representations 

made in this filing regarding (a) the 

description of the portfolio, (b) 

limitations on portfolio holdings or 

reference assets, or (c) the applicability 

of Exchange listing rules specified in 

this rule filing shall constitute 

continued listing requirements for 

listing the Shares of the Trust on the 

Exchange. 

The issuer has represented to the 

Exchange that it will advise the 

Exchange of any failure by the Trust to 

comply with the continued listing 

requirements, and, pursuant to its 

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

Act, the Exchange will monitor for 

compliance with the continued listing 

requirements. If the Trust is not in 

compliance with the applicable listing 

requirements, the Exchange will 

commence delisting procedures under 

NYSE Arca Equities Rule 5.5(m). 

Information Bulletin 

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: (1) The 

procedures for purchases and 

redemptions of Shares in Baskets 

(including noting 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) how information 

regarding the IIV is disseminated; (4) the 

requirement that ETP Holders deliver a 

prospectus to investors purchasing 

newly issued Shares prior to or 

concurrently with the confirmation of a 

transaction; (5) the possibility that 

trading spreads and the resulting 

premium or discount on the Shares may 

widen as a result of reduced liquidity of 

silver trading during the Core and Late 

Trading Sessions after the close of the 

major world silver markets; and (6) 

trading information. For example, the 

Information Bulletin will advise ETP 

Holders, prior to the commencement of 

trading, of the prospectus delivery 

requirements applicable to the Trust. 

The Exchange notes that investors 

purchasing Shares directly from the 

Trust (by delivery of the Creation Basket 

Deposit) will receive a prospectus. ETP 

Holders purchasing Shares from the 

Trust for resale to investors will deliver 

a prospectus to such investors. 

In addition, the Information Bulletin 

will reference that the Trust is subject 

to various fees and expenses as will be 

described in the Registration Statement. 

The Information Bulletin will also 

reference the fact that there is no 

regulated source of last sale information 

regarding physical silver, that the 

Commission has no jurisdiction over the 

trading of silver as a physical 

commodity, and that the CFTC has 

regulatory jurisdiction over the trading 

of silver futures contracts and options 

on silver futures contracts. 

The Information Bulletin will also 

discuss any relief, if granted, by the 

Commission or the staff from any rules 

under the Act. 

2. Statutory Basis 

The basis under the Act for this 

proposed rule change is the requirement 

under Section 6(b)(5) 22 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. 

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 8.201. 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. The Exchange 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. 

The proposed rule change is designed 

to promote just and equitable principles 

of trade and to protect investors and the 

public interest in that there is a 

considerable amount of silver price and 

silver market information available on 

public Web sites and through 

professional and subscription services. 

Investors may obtain silver pricing 

information on a 24-hour basis based on 

the spot price for an ounce of silver 

from various financial information 

service providers. ICAP’s EBS platform 

also provides an electronic trading 

platform to institutions such as bullion 

banks and dealers for the trading of spot 

silver, as well as a feed of live streaming 

prices to market data subscribers. 

The NAV of the Trust will be 

published by the Sponsor on each day 

that the NYSE Arca is open for regular 

trading and will be posted on the Trust’s 

Web site. The IIV relating to the Shares 

will be widely disseminated by one or 

more major market data vendors at least 

every 15 seconds during the Core 

Trading Session. The Trust’s Web site 

will also provide the Trust’s prospectus, 

as well as the two most recent reports 

to stockholders. In addition, 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. 

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 exchange-traded 

product that will enhance competition 

among market participants, to the 

benefit of investors and the marketplace. 

As noted above, the Exchange has in 

place surveillance procedures relating to 

trading in the Shares 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 silver pricing. 


asabaliauskas on DSKBBXCHB2PROD with NOTICES
Federal Register / Vol. 82, No. 188 / Friday, September 29, 2017 / Notices 45639 

23 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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 

Exchange believes the proposed rule 

change will enhance competition by 

accommodating Exchange trading of an 

additional exchange-traded product 

relating to physical silver. 

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 

up to 90 days (i) as the Commission may 

designate 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–2017–111 in 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–2017–111. This 

file number should be included in 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 will also 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–2017–111 and should be 

submitted on or before October 20, 

2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.23

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–20887 Filed 9–28–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81687] 

Public Availability of the Securities and 

Exchange Commission’s FY 2015 

Service Contract Inventory 

AGENCY: Securities and Exchange 

Commission. 

ACTION: Notice. 

SUMMARY: In accordance with Section 

743 of Division C of the Consolidated 

Appropriations Act of 2010, SEC is 

publishing this notice to advise the 

public of the availability of the FY2016 

Service Contract Inventory (SCI) and the 

FY2015 SCI Analysis. The SCI provides 

information on FY2016 actions over 

$25,000 for service contracts. The 

inventory organizes the information by 

function to show how SEC distributes 

contracted resources throughout the 

agency. SEC developed the inventory 

per the guidance issued on November 5, 

2011 by the Office of Management and 

Budget’s Office of Federal Procurement 

Policy (OFPP). OFPP’s guidance is 

available at http://www.whitehouse.gov/ 

sites/default/files/omb/procurement/ 

memo/service-contract-inventoriesguidance-11052010.pdf. 

The Service Contract Inventory 

Analysis for FY2015 provides 

information based on the FY 2015 

Inventory. Please note that the SEC’s FY 

2016 Service Contract Inventory data is 

now included in government-wide 

inventory available on 

www.acquisition.gov. The governmentwide inventory can be filtered to display 

the inventory data for the SEC. The SEC 

has posted its plan for analyzing FY 

2016 data, a link to the FY 2016 

government-wide Service Contract 

Inventory and the FY 2015 SCI Analysis 

on the SEC’s homepage at http://

www.sec.gov/about/secreports.shtml 

and http://www.sec.gov/open. 

FOR FURTHER INFORMATION CONTACT: 

Direct questions regarding the service 

contract inventory to Vance Cathell, 

Director Office of Acquisitions (202) 

551–8385 or CathellV@sec.gov. 

Dated: September 22, 2017. 

Brent J. Fields, 

Secretary. 

[FR Doc. 2017–20879 Filed 9–28–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81697; File No. SR– 

NASDAQ–2017–095] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Expand the 

Features of the Enterprise License Set 

Forth at Rule 7047 

September 25, 2017. 

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

Securities Exchange Act of 1934 

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

notice is hereby given that on 

September 12, 2017, The NASDAQ 

Stock Market LLC (‘‘Nasdaq’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission (‘‘SEC’’ or 

‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III, below, which Items have been 

prepared by the Exchange. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 


asabaliauskas on DSKBBXCHB2PROD with NOTICES