Document ID: SEC-2017-1586-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE Arca, Inc.
Posted Date: 2017-09-25T04:00Z

[Federal Register Volume 82, Number 184 (Monday, September 25, 2017)]
[Notices]
[Pages 44678-44682]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-20365]

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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

[[Page 44679]]

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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 79793 (January 13, 
2017), 82 FR 7885 (``Notice'').
    \4\ 15 U.S.C. 78s(b)(2).
    \5\ See Securities Exchange Act Release No. 80180, 82 FR 13702 
(March 14, 2017).
    \6\ See Securities Exchange Act Release No. 80486, 82 FR 19115 
(April 25, 2017).
    \7\ 15 U.S.C. 78s(b)(2).
    \8\ See 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, non-substantive, 
and conforming changes. Amendment No. 4 is available at: https://www.sec.gov/comments/sr-nysearca-2016-177/nysearca2016177-2228753-160788.pdf.
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II. Description of the Proposed Rule Change, as Modified by Amendment 
No. 4 \10\
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    \10\ For a more detailed description of the proposal, see 
Amendment No. 4, supra note 9.
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    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.
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    \11\ The 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).
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    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.
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    \12\ The 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.
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    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\
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    \13\ The 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).
    \14\ The WTI Future is the ICE West Texas Intermediate (WTI) 
Light Sweet Crude Oil Futures Contract traded on ICE Futures Europe.
    \15\ The 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'').
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The Fund's Investments

    The Fund will seek to achieve its investment objective by first 
entering into cash-settled uncleared over-the-counter (``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\
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    \16\ The 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.
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    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 exchange-traded 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) exchange-traded 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

[[Page 44680]]

``Other Crude Oil-Related Investments.'' \17\
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    \17\ Market 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.
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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.
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    \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).
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    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 per-Share 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.
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    \21\ The Exchange's Core Trading Session is from 9:30 a.m. E.T. 
to 4:00 p.m. E.T.
    \22\ The 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.
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    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 exchange-traded 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.
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    \23\ The contract specifications for the Benchmark Component 
Futures Contracts are also available on such Web sites, as well as 
other financial informational sources.
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    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

[[Page 44681]]

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.
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    \24\ The 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 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.
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    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\
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    \25\ The 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.
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    (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.
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    \26\ 17 CFR 240.10A-3.
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    (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

[[Page 44682]]

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.
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    \27\ The 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.
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    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.
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    \28\ 15 U.S.C. 78f(b)(5).
    \29\ 15 U.S.C. 78k-1(a)(1)(C)(iii).
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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.
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    \30\ See Amendment No. 4, supra note 9.
    \31\ 15 U.S.C. 78s(b)(2).
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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.
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    \32\ Id.
    \33\ 17 CFR 200.30-3(a)(12).

    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