Federal Register / Vol. 82, No. 187 / Thursday, September 28, 2017 / Notices 45329 

57 15 U.S.C. 78s(b)(2). 

58 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 Nos. 80584 

(May 3, 2017), 82 FR 21573 (May 9, 2017) (SR– 

NYSEArca–2017–44) (notice of filing of proposed 

rule change to list and trade shares of the IQ 

Municipal Insured ETF; IQ Municipal Short 

Duration ETF; and IQ Municipal Intermediate ETF 

under NYSE Arca Equities Rule 8.600) (‘‘Prior 

Notice’’); 80885 (June 8, 2017), 82 FR 27302 (June 

14, 2017) (SR–NYSEArca–2017–44) (order 

approving proposed rule change to list and trade 

shares of the IQ Municipal Insured ETF, IQ 

Municipal Short Duration ETF, and IQ Municipal 

Intermediate ETF under NYSE Arca Equities Rule 

8.600) (Prior Order, and, together with the Prior 

Notice, the ‘‘Prior Release’’). All terms referenced 

but not defined herein are defined in the Prior 

Release. 

4A Managed Fund Share is a security that 

represents an interest in an investment company 

registered under the Investment Company Act of 

1940 (15 U.S.C. 80a–1) (‘‘1940 Act’’) organized as 

an open-end investment company or similar entity 

that invests in a portfolio of securities selected by 

its investment adviser consistent with its 

investment objectives and policies. In contrast, an 

open-end investment company that issues 

Investment Company Units, listed and traded on 

the Exchange under NYSE Arca Equities Rule 5.2– 

E(j)(3), seeks to provide investment results that 

correspond generally to the price and yield 

performance of a specific foreign or domestic stock 

index, fixed income securities index or combination 

thereof. 

5The Exchange notes that the Commission has 

approved the listing and trading of other issues of 

Managed Fund Shares that have a duration range 

Continued 

Lastly, the Commission believes that 

the Exchange’s additional proposed 

amendments to clarify its rules 

regarding IB recordkeeping accounts 

(Article 17, Rule 3(c)), the 

recordkeeping requirements for certain 

Exchange participants (Article 11, Rule 

3), and the operation of the cross order 

type and Cross With Size handling 

(Article 1, Rule 2(a)(2), Article 1, Rule 

2(g)(1) and Article 20, Rule 8(e)) add 

transparency and remove any potential 

ambiguity in those rules and reduce the 

potential for confusion as to their 

meaning and intended application, 

which should help protect investors 

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

Act. In addition, the Commission 

believes that these proposed changes are 

reasonably designed to clarify the scope 

and meaning of those rules, which 

should help the Exchange assure 

compliance by Exchange participants 

with the Exchange’s rules, consistent 

with Section 6(b)(1) of the Act. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act 57 that the 

proposed rule change (SR–CHX–2017– 

12), be, and hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.58

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–20754 Filed 9–27–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81682; File No. SR– 

NYSEArca–2017–103] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Reflect Certain 

Changes Applicable to IQ Municipal 

Insured ETF, IQ Municipal Intermediate 

ETF, and IQ Municipal Short Duration 

ETF 

September 22, 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 13, 2017, NYSE Arca, Inc. 

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

with the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change as described in 

Items I and II 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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes (1) to reflect 

a change in the name of the IQ 

Municipal Insured ETF, IQ Municipal 

Intermediate ETF, and IQ Municipal 

Short Duration ETF (each a ‘‘Fund’’ and, 

collectively, the ‘‘Funds’’), and (2) to 

reflect a change in the dollar-weighted 

average duration to be maintained by 

the IQ Municipal Insured ETF and IQ 

Municipal Intermediate ETF. Shares of 

the Funds have been approved by the 

Securities and Exchange Commission 

(the ‘‘Commission’’) for listing and 

trading on the Exchange under NYSE 

Arca Rule 8.600–E. The proposed rule 

change is available on the Exchange’s 

Web site at www.nyse.com, at the 

principal office of the Exchange, and at 

the Commission’s Public Reference 

Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

self-regulatory organization included 

statements concerning the purpose of, 

and basis for, the proposed rule change 

and discussed any comments it received 

on the proposed rule change. The text 

of those statements may be examined at 

the places specified in Item IV below. 

The Exchange has prepared summaries, 

set forth in sections A, B, and C below, 

of the most significant parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Commission has approved a 

proposed rule change relating to listing 

and trading on the Exchange of shares 

(‘‘Shares’’) of the Funds under NYSE 

Arca Rule 8.600–E,3 which governs the 

listing and trading of Managed Fund 

Shares.4 The Shares will be offered by 

the IndexIQ Active ETF Trust (the 

‘‘Trust’’), which is registered with the 

Commission as an open-end 

management investment company. Each 

Fund is a series of the Trust. Shares of 

the Funds have been approved by the 

Commission for listing and trading on 

the Exchange under NYSE Arca Rule 

8.600–E. The Funds’ Shares have not 

commenced trading on the Exchange. 

On June 27, 2017, the name of the IQ 

Municipal Insured ETF was changed to 

IQ MacKay Shields Municipal Insured 

ETF, the name of the IQ Municipal 

Intermediate ETF was changed to IQ 

MacKay Shields Municipal Intermediate 

ETF, and the name of the IQ Municipal 

Short Duration ETF was changed to IQ 

MacKay Shields Municipal Short 

Duration ETF. This proposed rule 

change proposes to reflect these 

changes. 

The Prior Release stated that the IQ 

Municipal Insured ETF generally will 

maintain a dollar-weighted average 

duration within plus or minus two years 

of the dollar-weighted average duration 

of the S&P Municipal Bond Insured 

Index. The Fund proposes to change 

this representation to state that the Fund 

generally will maintain a dollarweighted average modified duration of 3 

to15 years. 

In addition, the Prior Release stated 

that the IQ Municipal Intermediate ETF 

generally will maintain a dollarweighted average duration within plus 

or minus two years of the dollarweighted average duration of the S&P 

Municipal Bond Intermediate Index. 

The Fund proposes to change this 

representation to state that the Fund 

generally will maintain a dollarweighted average modified duration of 

three to ten years.5

45330 Federal Register / Vol. 82, No. 187 / Thursday, September 28, 2017 / Notices 

comparable to those proposed for the Funds. See, 

e.g., Securities Exchange Act Release Nos. 79293 

(November 10, 2016), 81 FR 81189 (November 17, 

2016)(SR–NYSEArca–2016–107) (order approving 

listing and trading of shares of Cumberland 

Municipal Bond ETF under NYSE Arca Equities 

Rule 8.600, which states that ‘‘At least 80% of the 

weight of the Fund’s assets will be in Municipal 

Bonds with a modified duration of 15 years or 

less’’); 71617 (February 26, 2014), 79 FR 12257 

(March 4, 2014) (SR–NYSEArca–2013–135) (Order 

Granting Approval of Proposed Rule Change to List 

and Trade Shares of db-X Ultra-Short Duration 

Fund and db-X Managed Municipal Bond Fund 

under NYSE Arca Equities Rule 8.600, which states 

that ‘‘[a]lthough the [db-X Managed Municipal 

Bond Fund] may adjust duration of its holdings 

over a wider range, it generally intends to keep it 

between five and nine years’’); 77522 (April 5, 

2016), 81 FR 21420 (April 11, 2016) (SR– 

NYSEArca–2015–125) (order approving proposed 

rule change to list and trade shares of the Riverfront 

Dynamic Unconstrained Income ETF and Riverfront 

Dynamic Core Income ETF under NYSE Arca 

Equities Rule 8.600, which states that ‘‘the SubAdviser intends to manage the [Riverfront Dynamic 

Unconstrained Income ETF’s] portfolio so that it 

has an average duration of between two and ten 

years, under normal circumstances’’). 

6See note 3, supra. 

7 15 U.S.C. 78f(b)(5). 

8 15 U.S.C. 78s(b)(3)(A). 

9 17 CFR 240.19b–4(f)(6). As required under Rule 

19b–4(f)(6)(iii), the Exchange provided the 

Commission with written notice of its intent to file 

the proposed rule change, along with a brief 

description and the text of the proposed rule 

change, at least five business days prior to the date 

of filing of the proposed rule change, or such 

shorter time as designated by the Commission. 10 17 CFR 200.30–3(a)(12). 

The Adviser represents that the 

proposal to change representations 

regarding duration, as described above, 

is consistent with each applicable 

Fund’s respective investment objective, 

and will further assist the Adviser and 

Subadviser to achieve such investment 

objective. Except for the changes noted 

above, all other representations made in 

the Prior Release remain unchanged.6

The Funds will comply with all initial 

and continued listing requirements 

under NYSE Arca Equities Rule 8.600– 

E. 

The Adviser represents that the 

investment objective of the Funds is not 

changing. 

2. Statutory Basis 

The basis under the Act for this 

proposed rule change is the requirement 

under Section 6(b)(5) 7 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 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. The 

names of the Funds have been changed 

to include the name of the Subadviser 

(MacKay Shields LLC). The Exchange 

believes that the change to the 

representations regarding the dollarweighted average modified duration of 

the applicable Funds will not adversely 

impact investors or Exchange trading 

and will provide such Funds with 

additional flexibility in managing the 

Funds’ investments based on the 

Adviser’s and Subadviser’s assessment 

of market conditions impacting the 

Funds’ investments. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purpose of the Act. The Exchange 

believes the proposed rule change will 

provide the Adviser and Subadviser 

with additional flexibility in managing 

the applicable Funds’ investments based 

on the Adviser’s and Subadviser’s 

assessment of market conditions 

impacting the Funds’ investments and 

will not impose a burden on 

competition. In addition, the Funds’ 

name changes as described above raise 

no competitive issues. 

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 

Because the foregoing proposed rule 

change does not: (i) Significantly affect 

the protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 8 and Rule 19b– 

4(f)(6) thereunder.9

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. 

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–2017–103 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–2017–103. 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–2017–103 and should be 

submitted on or before October 19, 

2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–20752 Filed 9–27–17; 8:45 am] 

BILLING CODE 8011–01–P