Document ID: SEC-2014-0907-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE Arca, Inc.
Posted Date: 2014-06-03T04:00Z

[Federal Register Volume 79, Number 106 (Tuesday, June 3, 2014)]
[Notices]
[Pages 32008-32009]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-12768]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-72265; File No. SR-NYSEArca-2013-127]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of 
Designation of a Longer Period for Commission Action on a Proposed Rule 
Change, as Modified by Amendments No. 1 and No. 2 Thereto, To List and 
Trade Shares of Nine Series of the IndexIQ Active ETF Trust Under NYSE 
Arca Equities Rule 8.600

May 28, 2014.
    On November 18, 2013, NYSE Arca, Inc. (``Exchange'' or ``NYSE 
Arca'') filed with the Securities and Exchange Commission 
(``Commission''), pursuant to Section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act'' or ``Exchange Act'') \1\ and Rule 19b-4 
thereunder,\2\ a proposed rule change to list and trade shares of the 
IQ Long/Short Alpha ETF, IQ Bear U.S. Large Cap ETF, IQ Bear U.S. Small 
Cap ETF, IQ Bear International ETF, IQ Bear Emerging Markets ETF, IQ 
Bull U.S. Large Cap ETF, IQ Bull U.S. Small Cap ETF, IQ Bull 
International ETF and IQ Bull Emerging Markets ETF (collectively, 
``Funds''). On November 26, 2013, the Exchange filed Amendment No. 1 to 
the proposed rule change.\3\ The proposed rule change, as modified by 
Amendment No. 1, was published for comment in the Federal Register on 
December 4, 2013.\4\
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Amendment No. 1 clarifies (i) how certain holdings will be 
valued for purposes of calculating a fund's net asset value, and 
(ii) where investors will be able to obtain pricing information for 
certain underlying holdings.
    \4\ Securities Exchange Act Release No. 70954 (November 27, 
2013), 78 FR 72955 (``Notice'').
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    On January 15, 2014, pursuant to Section 19(b)(2) of the Act,\5\ 
the Commission designated a longer period within which to either 
approve the proposed rule change, disapprove the proposed rule change, 
or institute proceedings to determine whether to disapprove the 
proposed rule change.\6\ On March 4, 2014, the Commission instituted 
proceedings to determine whether to approve or disapprove the proposed 
rule change.\7\ On April 11, 2014, the Exchange submitted Amendment No. 
2 to the proposed rule change.\8\ The Commission received no comments 
on the proposed rule change.
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    \5\ 15 U.S.C. 78s(b)(2).
    \6\ See Securities Exchange Act Release No. 71309, 79 FR 3657 
(January 22, 2014). The Commission determined that it was 
appropriate to designate a longer period within which to take action 
on the proposed rule change so that it has sufficient time to 
consider the proposed rule change. Accordingly, the Commission 
designated March 4, 2014 as the date by which it should approve, 
disapprove, or institute proceedings to determine whether to 
disapprove the proposed rule change.
    \7\ See Securities Exchange Act Release No. 71645, 79 FR 13349 
(March 10, 2014).
    \8\ In Amendment No. 2, the Exchange provided additional details 
describing how the contents of the portfolio composition of the Fund 
would be disclosed on a daily basis. Specifically, the Fund will 
disclose on the Fund's Web site the following information regarding 
each portfolio holding, as applicable to the type of holding: ticker 
symbol, CUSIP number or other identifier, if any; a description of 
the holding (including the type of holding, such as the type of 
swap); the identity of the security, commodity, index or other asset 
or instrument underlying the holding, if any; for options, the 
option strike price; quantity held (as measured by, for example, par 
value, notional value or number of shares, contracts or units); 
maturity date, if any; coupon rate, if any; effective date, if any; 
market value of the holding; and the percentage weighting of the 
holding in the applicable Fund's portfolio.
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    Section 19(b)(2) of the Act \9\ provides that, after initiating 
disapproval proceedings, the Commission shall issue an order approving 
or disapproving the proposed rule change not later than 180 days after 
the date of publication of notice of filing of the proposed rule 
change. The Commission may extend the period for issuing an order 
approving or disapproving the proposed rule change, however, by not 
more than 60 days if the Commission determines that a longer period is 
appropriate and publishes the reasons for such determination. The 
proposed rule change was published for notice and comment in the 
Federal Register on December 4, 2013. June 2, 2014 is 180 days from 
that date, and August 1, 2014 is 240 days from that date.
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    \9\ 15 U.S.C. 78s(b)(2).

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[[Page 32009]]

    The Commission finds it appropriate to designate a longer period 
within which to issue an order approving or disapproving the proposed 
rule change so that it has sufficient time to consider this proposed 
rule change. The proposed rule change would permit the listing and 
trading of shares of the Funds, which intend to invest primarily in 
exchange-traded funds (``ETFs''), swap agreements, options contracts 
and futures contracts. Four of the Funds would use the leverage 
inherent in swaps and other derivatives to give the funds 200% exposure 
to their investments.
    Accordingly, the Commission, pursuant to Section 19(b)(2) of the 
Act,\10\ designates August 1, 2014 as the date by which the Commission 
should either approve or disapprove the proposed rule change (File 
Number SR-NYSEArca-2013-127), as modified by Amendments No. 1 and No. 2 
thereto.
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    \10\ Id.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(57).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-12768 Filed 6-2-14; 8:45 am]
BILLING CODE 8011-01-P