Document ID: SEC-2015-1578-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE Arca, Inc.
Posted Date: 2015-09-30T04:00Z

[Federal Register Volume 80, Number 189 (Wednesday, September 30, 2015)]
[Notices]
[Pages 58797-58799]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-24716]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75979; File No. SR-NYSEArca-2015-80]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Relating to a 
Change to the Secondary Benchmark Index Applicable to Shares of the 
PIMCO Global Advantage[supreg] Inflation-Linked Bond Active Exchange-
Traded Fund

September 24, 2015.
    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 11, 2015, 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.
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    \1\ 15 U.S.C.78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to reflect a change to the secondary 
benchmark index applicable to shares of the PIMCO Global 
Advantage[supreg] Inflation-Linked Bond Active Exchange-Traded Fund. 
The Fund is currently listed and traded on the Exchange under NYSE Arca 
Equities Rule 8.600. The text of 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 PIMCO 
Global Advantage[supreg] Inflation-Linked Bond Active Exchange-Traded 
Fund (``Fund'') under NYSE Arca Equities Rule 8.600,\4\ which governs 
the listing and trading of Managed Fund Shares.\5\ The Shares are

[[Page 58798]]

offered by PIMCO ETF Trust (the ``Trust''), a statutory trust organized 
under the laws of the State of Delaware and registered with the 
Commission as an open-end management investment company.\6\ The 
investment manager to the Fund is Pacific Investment Management Company 
LLC (``PIMCO'' or the ``Adviser''). The Fund's Shares are currently 
listed and traded on the Exchange under NYSE Arca Equities Rule 8.600.
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    \4\ See Securities Exchange Act Release No. 66381 (February 10, 
2012), 77 FR 9281 (February 16, 2012) (SR-NYSEArca-2012-09) (notice 
of filing of proposed rule change relating to listing and trading of 
Shares of the Fund on the Exchange) (``Prior Notice''); Securities 
Exchange Act Release No. 66670 (March 28, 2012), 77 FR 20087 (April 
3, 2012) (SR-NYSEArca-2012-09) (order approving listing and trading 
of Shares of the Fund on the Exchange) (``Prior Order'' and, 
together with the Prior Notice, the ``Prior Release'').
    \5\ A 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(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.
    \6\ The Trust is registered under the Investment Company Act of 
1940 (``1940 Act''). On October 27, 2014, the Trust filed with the 
Commission the most recent post-effective amendment to its 
registration statement under the Securities Act of 1933 (15 U.S.C. 
77a) (``1933 Act'') and under the 1940 Act relating to the Fund 
(File Nos. 333-155395 and 811-22250) (the ``Registration 
Statement''). The description of the operation of the Trust and the 
Fund herein is based, in part, on the Registration Statement. A 
change to the name of the Fund from PIMCO Global Advantage[supreg] 
Inflation-Linked Bond Exchange-Traded Fund to PIMCO Global 
Advantage[supreg] Inflation-Linked Bond Active Exchange-Traded Fund 
was reflected in such amendment to the Registration Statement. In 
addition, the Commission has issued an order granting certain 
exemptive relief to the Trust under the 1940 Act. See Investment 
Company Act Release No. 28993 (November 10, 2009) (File No. 812-
13571) (``Exemptive Order'').
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    According to the Registration Statement and the Prior Release, the 
Fund utilizes the PIMCO Global Advantage Inflation-Linked Bond 
Index[supreg] as a secondary benchmark. Going forward, the Fund 
proposes to utilize the PIMCO Global Advantage Inflation-Linked Bond 
Index[supreg] (USD Partially Hedged) as the Fund's secondary benchmark. 
The proposal would change the secondary benchmark used by the Fund from 
an unhedged version of the index to one that is partially-hedged.
    The Adviser represents that the proposed change to the secondary 
benchmark index is consistent with the Fund's investment objective, and 
will further assist the Adviser to achieve such investment objective. 
The Adviser further represents that the change to the secondary 
benchmark index may better optimize the risk/return profile of the Fund 
as compared to the prior secondary benchmark index. Except for the 
change noted above, all other representations made in the Prior Release 
remain unchanged.\7\ The Fund will continue to comply with all initial 
and continued listing requirements under NYSE Arca Equities Rule 8.600.
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    \7\ See note 4, supra. All terms referenced but not defined 
herein are defined in the Prior Release.
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    Although the investment objective of the Fund is not changing, it 
will be indirectly affected by the proposed change because the Fund's 
investment objective is to seek ``total return which exceeds that of 
its benchmark indexes, consistent with prudent investment management.''
2. Statutory Basis
    The basis under the Act for this proposed rule change is the 
requirement under Section 6(b)(5) \8\ 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.
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    \8\ 15 U.S.C. 78f(b)(5).
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    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 proposed change to the Fund's secondary benchmark 
index will not adversely impact investors or Exchange trading. The 
proposal would change the secondary benchmark used by the Fund from an 
unhedged version of the index to one that is partially-hedged. The 
Adviser represents that the proposed change to the secondary benchmark 
index is consistent with the Fund's investment objective and will 
further assist the Adviser to achieve such investment objective. The 
Adviser further represents that the change to the secondary benchmark 
index may better optimize the risk/return profile of the Fund as 
compared to the prior secondary benchmark index. Except for the change 
noted above, all other representations made in the Prior Release remain 
unchanged.

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 enhance competition among issues of exchange-
traded funds that invest in fixed income securities.

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 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, if consistent with the protection of 
investors and the public interest, the proposed rule change has become 
effective pursuant to Section 19(b)(3)(A) of the Act \9\ and Rule 19b-
4(f)(6) thereunder.\10\
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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 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.
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    At any time within 60 days of the filing of such proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act. If the Commission 
takes such action, the Commission shall institute proceedings under 
Section 19(b)(2)(B) of the Act \11\ to determine whether the proposed 
rule change should be approved or disapproved.
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    \11\ 15 U.S.C. 78s(b)(2)(B).
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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-2015-80 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-2015-80. This 
file number should be included on the subject line if email is used. To 
help the

[[Page 58799]]

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 Section, 100 F Street NE., 
Washington, DC 20549 on official business days between 10 a.m. and 3 
p.m. Copies of the filing will also be available for inspection and 
copying at the NYSE's principal office and on its Internet Web site at 
www.nyse.com. 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-2015-80 and should be submitted on or before October 21, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-24716 Filed 9-29-15; 8:45 am]
 BILLING CODE 8011-01-P