Document ID: SEC-2014-0610-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NASDAQ Stock Market, LLC
Posted Date: 2014-04-11T04:00Z

[Federal Register Volume 79, Number 70 (Friday, April 11, 2014)]
[Notices]
[Pages 20262-20269]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-08127]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-71892; File No. SR-NASDAQ-2014-027]

Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing of Proposed Rule Change Relating to the Listing and 
Trading of the Shares of the PowerShares Multi-Strategy Alternative 
Portfolio, a series of PowerShares Actively Managed Exchange-Traded 
Fund Trust

April 7, 2014.
    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 March 24, 2014, The NASDAQ Stock Market LLC (``Nasdaq'' or the 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I, II, 
and III below, which Items have been prepared by Nasdaq. 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\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of the 
Substance of the Proposed Rule Change

    Nasdaq proposes to list and trade the shares of the PowerShares 
Multi-Strategy Alternative Portfolio (the ``Fund''), a series of 
PowerShares Actively Managed Exchange-Traded Fund Trust (the 
``Trust''), under Nasdaq Rule 5735 (``Managed Fund Shares''). The 
shares of the Fund are collectively referred to herein as the 
``Shares.''
    The text of the proposed rule change is available at http://nasdaq.cchwallstreet.com/, at Nasdaq's principal office, 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, Nasdaq included statements 
concerning the purpose of, and basis for, the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. Nasdaq has prepared summaries, set forth in Sections A, 
B, and C below, of the most significant aspects of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to list and trade the Shares of the Fund 
under Nasdaq Rule 5735, which governs the listing and trading of 
Managed Fund Shares \3\ on the Exchange.\4\ The Fund will be an 
actively managed exchange-traded fund (``ETF'') that will use 
proprietary portfolio management techniques in an effort to exceed a

[[Page 20263]]

benchmark index comprised of securities and other investments similar 
to those held by the Fund (the ``benchmark''). The Shares will be 
offered by the Trust, which was established as a Delaware statutory 
trust on November 6, 2007. The Trust is registered with the Commission 
as an investment company and has filed a post-effective amendment to 
its registration statement on Form N-1A (``Registration Statement'') 
with the Commission.\5\ The Fund is a series of the Trust. All of the 
exchange-listed securities and derivatives held by the Fund, or 
indirectly held through a wholly-owned subsidiary controlled by the 
Fund and organized under the laws of the Cayman Islands (referred to 
herein as the ``Subsidiary''), will be traded in a principal trading 
market that is a member of the Intermarket Surveillance Group (``ISG'') 
or a market with which the Exchange has a comprehensive surveillance 
sharing agreement.
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    \3\ 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) (the ``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 Index Fund Shares, listed 
and traded on the Exchange under Nasdaq Rule 5705, 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.
    \4\ The Commission approved Nasdaq Rule 5735 (formerly Nasdaq 
Rule 4420(o)) in Securities Exchange Act Release No. 57962 (June 13, 
2008), 73 FR 35175 (June 20, 2008) (SR-NASDAQ-2008-039). There are 
already multiple actively-managed funds listed on the Exchange; see, 
e.g., Securities Exchange Act Release Nos. 69464 (April 26, 2013), 
78 FR 25774 (May 2, 2013) (SR-NASDAQ-2013-036) (order approving 
listing and trading of First Trust Senior Loan Fund); 66489 
(February 29, 2012), 77 FR 13379 (March 6, 2012) (SR-NASDAQ-2012-
004) (order approving listing and trading of WisdomTree Emerging 
Markets Corporate Bond Fund). Additionally, the Commission has 
previously approved the listing and trading of a number of actively-
managed funds on NYSE Arca, Inc. pursuant to Rule 8.600 of that 
exchange. See, e.g., Securities Exchange Act Release No. 68870 
(February 8, 2013), 78 FR 11245 (February 15, 2013) (SR-NYSEArca-
2012-139) (order approving listing and trading of First Trust 
Preferred Securities and Income ETF). The Exchange believes the 
proposed rule change raises no significant issues not previously 
addressed in those prior Commission orders.
    \5\ See Registration Statement for the Trust, filed on November 
27, 2013 (File Nos. 333-147622 and 811-22148). The descriptions of 
the Fund and the Shares contained herein are based, in part, on 
information in the Registration Statement. In addition, the 
Commission has issued an order granting certain exemptive relief to 
the Trust under the1940 Act. See Investment Company Act Release No. 
28171 (February 27, 2008) (File No. 812-13386) (``Exemptive 
Order'').
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    Invesco PowerShares Capital Management LLC will be the investment 
adviser (``Adviser'') to the Fund. Invesco Distributors, Inc. (the 
``Distributor'') will be the principal underwriter and distributor of 
the Fund's Shares. The Bank of New York Mellon will act as the 
administrator, accounting agent, custodian (``Custodian'') and transfer 
agent for the Fund. The Fund may use one or more sub-advisers (``Sub-
Advisers'').\6\
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    \6\ No sub-adviser has been selected as of the date of this 
filing.
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    Paragraph (g) of Rule 5735 provides that if the investment adviser 
to the investment company issuing Managed Fund Shares is affiliated 
with a broker-dealer, such investment adviser shall erect a ``fire 
wall'' between the investment adviser and the broker-dealer with 
respect to access to information concerning the composition and/or 
changes to such investment company portfolio.\7\ In addition, paragraph 
(g) further requires that personnel who make decisions on the open-end 
fund's portfolio composition must be subject to procedures designed to 
prevent the use and dissemination of material, non-public information 
regarding the open-end fund's portfolio. Rule 5735(g) is similar to 
Nasdaq Rule 5705(b)(5)(A)(i); however, paragraph (g) in connection with 
the establishment of a ``fire wall'' between the investment adviser and 
the broker-dealer reflects the applicable open-end fund's portfolio, 
not an underlying benchmark index, as is the case with index-based 
funds. The Adviser is not a broker-dealer, although it is affiliated 
with the Distributor, a broker-dealer. The Adviser has implemented a 
fire wall with respect to its broker-dealer affiliate regarding access 
to information concerning the composition and/or changes to the 
portfolio. In the event (a) the Adviser becomes newly affiliated with a 
broker-dealer (or becomes a registered broker-dealer), or (b) any new 
adviser or sub-adviser is a registered broker-dealer or becomes 
affiliated with a broker-dealer, it will implement a fire wall with 
respect to its relevant personnel and/or such broker-dealer affiliate, 
if applicable, regarding access to information concerning the 
composition and/or changes to the portfolio and will be subject to 
procedures designed to prevent the use and dissemination of material 
non-public information regarding such portfolio.\8\
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    \7\ An investment adviser to an open-end fund is required to be 
registered under the Investment Advisers Act of 1940 (the ``Advisers 
Act''). As a result, the Adviser and any Sub-Adviser and their 
related personnel are subject to the provisions of Rule 204A-1 under 
the Advisers Act relating to codes of ethics. This Rule requires 
investment advisers to adopt a code of ethics that reflects the 
fiduciary nature of the relationship to clients as well as 
compliance with other applicable securities laws. Accordingly, 
procedures designed to prevent the communication and misuse of non-
public information by an investment adviser must be consistent with 
Rule 204A-1 under the Advisers Act. In addition, Rule 206(4)-7 under 
the Advisers Act makes it unlawful for an investment adviser to 
provide investment advice to clients unless such investment adviser 
has (i) adopted and implemented written policies and procedures 
reasonably designed to prevent violation, by the investment adviser 
and its supervised persons, of the Advisers Act and the Commission 
rules adopted thereunder; (ii) implemented, at a minimum, an annual 
review regarding the adequacy of the policies and procedures 
established pursuant to subparagraph (i) above and the effectiveness 
of their implementation; and (iii) designated an individual (who is 
a supervised person) responsible for administering the policies and 
procedures adopted under subparagraph (i) above.
    \8\ No Sub-Adviser will be a broker-dealer. Any Sub-Adviser to 
the Fund will comply with these representations and undertakings as 
a condition to acting as sub-adviser to the Fund.
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Principal Investment Strategies
    The Fund's investment objective will be to seek positive total 
returns that have low correlation to the broader securities markets. 
The Fund seeks to achieve its investment objective by actively 
investing in a combination of a varying number of market neutral and 
other investment strategies (each, a ``Strategy,'' and together, the 
``Strategies'') that aim to capture non-traditional risk premia across 
asset classes.
    The Adviser will allocate the weightings of the Fund's investments 
across the multiple Strategies according to a rules-based methodology 
and will reallocate the Fund's assets among Strategies to achieve the 
Fund's investment objective. The Strategies may include, but are not 
limited to, quantitative, volatility risk premium and carry Strategies. 
The Fund's Strategies are similar to the strategies included in its 
benchmark and the Fund may hold the same types of instruments in 
similar weightings as the benchmark. However, the Adviser is not 
obliged to track the performance of the benchmark and will use 
proprietary portfolio management techniques to seek to exceed the 
benchmark's performance.
    In pursuing its investment objective, under normal market 
conditions,\9\ the Fund as part of investing according to the various 
Strategies, may take both long and short positions in exchange-traded 
equity securities and equity index futures.\10\ The Fund also may take 
a long and a short position in various currencies by investing in 
currency forward and/or futures contracts.\11\
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    \9\ The term ``under normal market conditions'' as used herein 
includes, but is not limited to, the absence of adverse market, 
economic, political or other conditions, including extreme 
volatility or trading halts in the securities markets or the 
financial markets generally; operational issues causing 
dissemination of inaccurate market information; or force majeure 
type events such as systems failure, natural or man-made disaster, 
act of God, armed conflict, act of terrorism, riot or labor 
disruption or any similar intervening circumstance. In periods of 
extreme market disturbance, the Fund may take temporary defensive 
positions, by overweighting its portfolio in cash/cash-like 
instruments; however, to the extent possible, the Adviser would 
continue to seek to achieve the Fund's investment objective.
    \10\ These equity securities, including exchange-traded equity 
securities of registered investment companies, and equity index 
futures will be traded on U.S. exchanges or non-U.S. exchanges that 
are ISG members.
    \11\ Currency futures contracts will be traded on U.S. exchanges 
or non-U.S. exchanges that are ISG members. Currency forward 
contracts will be traded over-the-counter.
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    Additionally, the Fund may invest in index options.\12\ In 
following various Strategies, the Fund may purchase and sell interest 
rate futures, including Eurodollar interest rate futures or Euro 
Euribor interest rate futures, and Chicago Board Options Exchange 
Volatility Index (``VIX'') futures contracts.\13\
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    \12\ Index options will be traded on U.S. exchanges or non-U.S. 
exchanges that are ISG members.
    \13\ These futures contracts will be traded on U.S. exchanges or 
non-U.S. exchanges that are ISG members.

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[[Page 20264]]

The Subsidiary
    The Fund may seek to gain exposure to these various derivative 
investments through investments in the Subsidiary, which in turn would 
make investments in those derivatives and other instruments. If 
utilized, the Subsidiary would be wholly-owned and controlled by the 
Fund, and its investments would be consolidated into the Fund's 
financial statements.
    Should the Fund invest in the Subsidiary, that investment may not 
exceed 25% of the Fund's total assets at each quarter-end of the Fund's 
fiscal year. Further, should the Fund invest in the Subsidiary, it 
would be expected to provide the Fund with exposure to futures 
contracts and other derivatives within the limits of Subchapter M of 
the Internal Revenue Code applicable to investment companies, such as 
the Fund, which limit the ability of investment companies to invest 
directly in derivative instruments.
    The Subsidiary would be able to invest in the same asset classes in 
which the Fund may invest. The Subsidiary, accordingly, would be 
subject to the same general investment policies and restrictions as the 
Fund, except that unlike the Fund, which must invest in derivatives in 
compliance with the requirements of Subchapter M of the Internal 
Revenue Code, federal securities laws and the Commodity Exchange Act, 
the Subsidiary may invest without limitation in futures contracts. 
References to the investment strategies and risks of the Fund include 
the investment strategies and risks of the Subsidiary.
    The Subsidiary will be advised by the Adviser.\14\ The Fund may 
utilize the Subsidiary, but is not required to do so. If it is 
utilized, the Subsidiary will not be registered under the 1940 Act. As 
an investor in the Subsidiary, the Fund, as the Subsidiary's sole 
shareholder, would not have the protections offered to investors in 
registered investment companies. However, because the Fund would wholly 
own and control the Subsidiary, and the Fund and Subsidiary would be 
managed by the Adviser, the Subsidiary would not take action contrary 
to the interests of the Fund or the Fund's shareholders. The Board of 
Trustees of the Trust (the ``Board'') has oversight responsibility for 
the investment activities of the Fund, including any investments in the 
Subsidiary, and oversees the Fund's role as the sole shareholder of the 
Subsidiary. The Adviser will receive no additional compensation for 
managing the assets of the Subsidiary. Also, in managing the 
Subsidiary's portfolio, the Adviser would be subject to the same 
investment restrictions and operational guidelines that apply to the 
management of the Fund, except that the Subsidiary would not be subject 
to the limitations imposed by Subchapter M of the Internal Revenue Code 
with respect to the amount of assets that can be invested in futures 
contracts and derivatives. Changes in the laws of the United States, 
under which the Trust is organized, or of the Cayman Islands, under 
which the Subsidiary is organized, could result in the inability of the 
Fund or the Subsidiary to operate as described in this filing or in the 
Registration Statement and could negatively affect the Fund and its 
shareholders.
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    \14\ The Subsidiary also will enter into separate contracts for 
the provision of custody, transfer agency, and accounting agent 
services with the same or with affiliates of the same service 
providers that provide those services to the Fund.
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Other Investments
    The Fund may invest in U.S. government securities, money market 
instruments, cash and cash equivalents (e.g., corporate commercial 
paper) to provide liquidity and to collateralize its investments in 
derivative instruments.
    The Fund may invest in: (i) Short-term obligations issued by the 
U.S. Government \15\; (ii) short term negotiable obligations of 
commercial banks, fixed time deposits and bankers' acceptances of U.S. 
and foreign banks and similar institutions \16\; and (iii) commercial 
paper rated at the date of purchase ``Prime-1'' by Moody's Investors 
Service, Inc. or ``A-1+'' or ``A-1'' by Standard & Poor's or, if 
unrated, of comparable quality, as the Adviser of the Fund determines.
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    \15\ The Fund may invest in U.S. government obligations. 
Obligations issued or guaranteed by the U.S. Government, its 
agencies and instrumentalities include bills, notes and bonds issued 
by the U.S. Treasury, as well as ``stripped'' or ``zero coupon'' 
U.S. Treasury obligations representing future interest or principal 
payments on U.S. Treasury notes or bonds.
    \16\ Time deposits are non-negotiable deposits maintained in 
banking institutions for specified periods of time at stated 
interest rates. Banker's acceptances are time drafts drawn on 
commercial banks by borrowers, usually in connection with 
international transactions.
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    In addition, the Fund may invest in non-exchange listed securities 
of other investment companies (including money market funds) beyond the 
limits permitted under the 1940 Act, subject to certain terms and 
conditions set forth in a Commission exemptive order issued pursuant to 
Section 12(d)(1)(J) of the 1940 Act.\17\
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    \17\ Investment Company Act Release No. 30238 (October 23, 2012) 
(File No. 812-13820).
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Investment Restrictions
    The Fund may not concentrate its investments (i.e., invest more 
than 25% of the value of its net assets) in securities of issuers in 
any one industry or group of industries. This restriction will not 
apply to obligations issued or guaranteed by the U.S. government, its 
agencies or instrumentalities.\18\
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    \18\ See Form N-1A, Item 9. The Commission has taken the 
position that a fund is concentrated if it invests more than 25% of 
the value of its total assets in any one industry. See, e.g., 
Investment Company Act Release No. 9011 (October 30, 1975), 40 FR 
54241 (November 21, 1975).
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    The Subsidiary's shares will be offered only to the Fund and the 
Fund will not sell shares of the Subsidiary to other investors. The 
Fund and the Subsidiary will not invest in any non-U.S. equity 
securities (other than shares of the Subsidiary).
    The Fund may hold up to an aggregate amount of 15% of its net 
assets in illiquid securities or other illiquid assets (calculated at 
the time of investment). The Fund will monitor its portfolio liquidity 
on an ongoing basis to determine whether, in light of current 
circumstances, an adequate level of liquidity is being maintained, and 
will consider taking appropriate steps in order to maintain adequate 
liquidity if, through a change in values, net assets, or other 
circumstances, more than 15% of the Fund's net assets are held in 
illiquid securities or other illiquid assets. Illiquid securities and 
other illiquid assets include those subject to contractual or other 
restrictions on resale and other instruments or assets that lack 
readily available markets as determined in accordance with Commission 
staff guidance.\19\
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    \19\ The Commission has stated that long-standing Commission 
guidelines have required open-end funds to hold no more than 15% of 
their net assets in illiquid securities and other illiquid assets. 
See Investment Company Act Release No. 28193 (March 11, 2008), 73 FR 
14618 (March 18, 2008), FN 34. See also Investment Company Act 
Release No. 5847 (October 21, 1969), 35 FR 19989 (December 31, 1970) 
(Statement Regarding ``Restricted Securities''); Investment Company 
Act Release No. 18612 (March 12, 1992), 57 FR 9828 (March 20, 1992) 
(Revisions of Guidelines to Form N-1A). A fund's portfolio security 
is illiquid if it cannot be disposed of in the ordinary course of 
business within seven days at approximately the value ascribed to it 
by the fund. See Investment Company Act Release No. 14983 (March 12, 
1986), 51 FR 9773 (March 21, 1986) (adopting amendments to Rule 2a-7 
under the 1940 Act); Investment Company Act Release No. 17452 (April 
23, 1990), 55 FR 17933 (April 30, 1990) (adopting Rule 144A under 
the Securities Act of 1933).
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    The Fund intends to qualify for and to elect to be treated as a 
separate regulated investment company under Subchapter M of the 
Internal Revenue Code.\20\
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    \20\ 26 U.S.C. 851.

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[[Page 20265]]

    The Fund's and the Subsidiary's investments will be consistent with 
the Fund's investment objective. Additionally, the Fund may engage in 
frequent and active trading of portfolio securities to achieve its 
investment objective. One or more of the Strategies may utilize 
instruments or investment techniques that have a leveraging effect on 
the Fund. This effective leverage occurs when the Fund's market 
exposure exceeds the amounts actually invested. Any instance of 
effective leverage will be covered in accordance with guidance 
promulgated by the Commission and its staff.\21\ The Fund does not 
presently intend to engage in any form of borrowing for investment 
purposes, and will not be operated as a ``leveraged ETF,'' i.e., it 
will not be operated in a manner designed to seek a multiple of the 
performance of an underlying reference index.
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    \21\ In re Securities Trading Practices of Investment Companies, 
SEC Rel. No. IC-10666 (April 27, 1979).
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Net Asset Value
    The Fund's administrator will calculate the Fund's net asset value 
(``NAV'') per Share as of the close of regular trading (normally 4:00 
p.m., Eastern time (``E.T.'')) on each day the New York Stock Exchange 
(``NYSE'') is open for business. NAV per Share will be calculated for 
the Fund by taking the value of the Fund's total assets, including 
interest or dividends accrued but not yet collected, less all 
liabilities, and dividing such amount by the total number of Shares 
outstanding. The result, rounded to the nearest cent, will be the NAV 
per Share (although creations and redemptions will be processed using a 
price denominated to the fifth decimal point, meaning that rounding to 
the nearest cent may result in different prices in certain 
circumstances). Under normal market conditions, the Fund's holdings 
will be priced as follows: (a) The value of the currency forwards will 
be calculated using the spot price and the forward spread of the 
subject currency; (b) index options will be valued at the official 
closing price on the market on which they primarily trade; (c) 
investment company shares will be valued at net asset value, unless the 
shares are exchange traded, in which case they will be valued at the 
last sale or official closing price on the market on which they 
primarily trade; (d) U.S. government securities will be valued at the 
mean price provided by a third party vendor for U.S. government 
securities; (e) short term money market instruments and cash 
equivalents (e.g., corporate commercial paper or bank instruments) will 
be valued in accordance with the Trust's valuation policies and 
procedures approved by the Trust's Board; and (f) all other securities 
held by the Fund will be valued at the last sales price or official 
closing price as of the close of the exchange where the security 
primarily is traded. All valuations will be subject to review by the 
Board or its delegate.
    In determining NAV, expenses will be accrued and applied daily and 
securities and other assets for which market quotations are readily 
available will be valued at market value. Futures and securities listed 
or traded on an exchange generally will be valued at the last sales 
price or official closing price that day as of the close of the 
exchange where the security primarily is traded. The NAV for the Fund 
will be calculated and disseminated daily. If a security's market price 
is not readily available, the security will be valued using pricing 
provided from independent pricing services or by another method that 
the Adviser, in its judgment, believes will better reflect the 
security's fair value in accordance with the Trust's valuation policies 
and procedures approved by the Trust's Board and with the 1940 Act.
Creation and Redemption of Shares
    The Trust will issue and redeem Shares of the Fund at NAV only with 
authorized participants (``APs'') and only in aggregations of 50,000 
shares (each, a ``Creation Unit''), on a continuous basis through the 
Distributor, without a sales load, at the NAV next determined after 
receipt, on any business day, of an order in proper form.
    The consideration for purchase of Creation Unit aggregations of the 
Fund may consist of (i) cash in lieu of all or a portion of the Deposit 
Securities, as defined below, or (ii) an ``in-kind'' deposit of a 
designated portfolio of securities determined by the Adviser that 
generally will conform to the holdings of the Fund consistent with its 
investment objective (the ``Deposit Securities'') per each Creation 
Unit aggregation and generally an amount of cash (the ``Cash 
Component'') computed as described below. Together, the Deposit 
Securities and the Cash Component (including the cash in lieu amount) 
will constitute the ``Fund Deposit,'' which will represent the minimum 
initial and subsequent investment amount for a Creation Unit 
aggregation of the Fund.
    The consideration for redemption of Creation Unit aggregations of 
the Fund may consist of (i) cash in lieu of all or a portion of the 
Fund Securities as defined below, or (ii) a designated portfolio of 
securities determined by the Adviser that generally will conform to the 
holdings of the Fund consistent with its investment objective per each 
Creation Unit aggregation (``Fund Securities'') and generally a Cash 
Component, as described below.
    The Fund typically will issue and redeem Creation Units principally 
for cash,\22\ calculated based on the NAV per Share, multiplied by the 
number of Shares representing a Creation Unit (``Deposit Cash''), plus 
a fixed and/or variable transaction fee; however, the Fund also 
reserves the right to permit or require Creation Units to be issued in 
exchange for the Deposit Securities together with the Cash Component. 
The Cash Component is sometimes also referred to as the Balancing 
Amount. The Cash Component will serve the function of compensating for 
any differences between the NAV per Creation Unit aggregation and the 
Deposit Amount (as defined below). For example, for a creation the Cash 
Component will be an amount equal to the difference between the NAV of 
Fund Shares (per Creation Unit aggregation) and the ``Deposit 
Amount''--an amount equal to the market value of the Deposit Securities 
and/or cash in lieu of all or a portion of the Deposit Securities. If 
the Cash Component is a positive number (i.e., the NAV per Creation 
Unit aggregation exceeds the Deposit Amount), the AP will deliver the 
Cash Component. If the Cash Component is a negative number (i.e., the 
NAV per Creation Unit aggregation is less than the Deposit Amount), the 
AP will receive the Cash Component.
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    \22\ The Fund reserves the right to issue and redeem Creation 
Units in-kind in instances in which a certain security or other 
asset can be delivered in-kind, and when such in-kind issuance and 
redemptions are in the best interest of the Fund, such as instances 
in which receipt or payment of in-kind assets would facilitate the 
orderly management of the Fund.
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    To the extent that the Fund permits Creation Units to be issued in-
kind, the Custodian, through the National Securities Clearing 
Corporation (``NSCC''), will make available on each business day, prior 
to the opening of business of the NYSE (currently 9:30 a.m., E.T.), the 
list of the names and the quantity of each Deposit Security to be 
included in the current Fund Deposit (based on information at the end 
of the previous business day) for the Fund. Such Fund Deposit will be 
applicable, subject to any adjustments as described below or in the 
Registration Statement, to effect creations of Creation Units of the 
Fund until such time as the next-

[[Page 20266]]

announced composition of the Deposit Securities is made available.
    To the extent that the Fund permits Creation Units to be redeemed 
in-kind, the Custodian, through the NSCC, will make available on each 
business day, prior to the opening of business of NYSE (currently 9:30 
a.m., E.T.), the identity of the Fund Securities that will be 
applicable (subject to possible amendment or correction) to redemption 
requests received in proper form on that day. Fund Securities received 
on redemption may not be identical to Deposit Securities that are 
applicable to creations of Creation Units.
    When applicable, during times that the Fund permits in-kind 
creations, the identity and quantity of the Deposit Securities required 
for a Fund Deposit for the Shares may change as rebalancing adjustments 
and corporate action events occur and are reflected within the Fund 
from time to time by the Adviser, consistent with the investment 
objective of the Fund. In addition, the Trust reserves the right to 
permit or require the substitution of an amount of cash--i.e., a ``cash 
in lieu'' amount--to be added to the Cash Component to replace any 
Deposit Security that may not be available in sufficient quantity for 
delivery or which might not be eligible for trading by an AP or the 
investor for which it is acting or other relevant reason.
    In addition to the list of names and numbers of securities 
constituting the current Deposit Securities of a Fund Deposit, the 
Custodian, through the NSCC, also will make available on each business 
day, the estimated Cash Component, effective through and including the 
previous business day, per Creation Unit aggregation of the Fund.
    To be eligible to place orders with respect to creations and 
redemptions of Creation Units, an entity must be (i) a ``Participating 
Party,'' i.e., a broker-dealer or other participant in the clearing 
process through the continuous net settlement system of the NSCC or 
(ii) a Depository Trust Company (``DTC'') Participant (a ``DTC 
Participant''). In addition, each Participating Party or DTC 
Participant (each, an AP) must execute an agreement that has been 
agreed to by the Distributor and the Custodian with respect to 
purchases and redemptions of Creation Units.
    All orders to create Creation Unit aggregations must be received by 
the transfer agent no later than the closing time of the regular 
trading session on the NYSE (ordinarily 4:00 p.m., E.T.) in each case 
on the date such order is placed in order for creations of Creation 
Unit aggregations to be effected based on the NAV of Shares of the Fund 
as next determined on such date after receipt of the order in proper 
form.
    In order to redeem Creation Units of the Fund, an AP must submit an 
order to redeem for one or more Creation Units. All such orders must be 
received by the Fund's transfer agent in proper form no later than the 
close of regular trading on the NYSE (ordinarily 4:00 p.m. E.T.) in 
order to receive that day's closing NAV per Share.
Availability of Information
    The Fund's Web site (www.invescopowershares.com), 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. The Web 
site will include the Share's ticker, CUSIP and exchange information, 
along with additional quantitative information updated on a daily 
basis, including, for the Fund: (1) Daily trading volume, the prior 
business day's reported NAV and closing price, mid-point of the bid/ask 
spread at the time of calculation of such NAV (the ``Bid/Ask 
Price''),\23\ and a calculation of the premium and discount of the Bid/
Ask Price against the NAV; and (2) data in chart format displaying the 
frequency distribution of discounts and premiums of the daily Bid/Ask 
Price against the NAV, within appropriate ranges, for the most recently 
completed calendar year and each of the four most recently completed 
calendar quarters since that year (or the life of the Fund if shorter). 
On each business day, before commencement of trading in Shares in the 
Regular Market Session \24\ on the Exchange, the Fund will disclose on 
its Web site the identities and quantities of the portfolio of 
securities and other assets (the ``Disclosed Portfolio'' as defined in 
Nasdaq Rule 5735(c)(2)) held by the Fund and, if applicable, the 
Subsidiary that will form the basis for the Fund's calculation of NAV 
at the end of the business day.\25\ The Disclosed Portfolio will 
include, as applicable, the names, quantity, percentage weighting and 
market value of securities and other assets held by the Fund and the 
Subsidiary and the characteristics of such assets. The Web site 
information will be publicly available at no charge.
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    \23\ The Bid/Ask Price of the Fund will be determined using the 
mid-point of the highest bid and the lowest offer on the Exchange as 
of the time of calculation of the Fund's NAV. The records relating 
to Bid/Ask Prices will be retained by the Fund and its service 
providers.
    \24\ See Nasdaq Rule 4120(b)(4) (describing the three trading 
sessions on the Exchange: (1) Pre-Market Session from 4 a.m. to 9:30 
a.m. E.T.; (2) Regular Market Session from 9:30 a.m. to 4 p.m. or 
4:15 p.m. E.T.; and (3) Post-Market Session from 4 p.m. or 4:15 p.m. 
to 8 p.m. E.T.).
    \25\ Under accounting procedures to be followed by the Fund, 
trades made on the prior business day (``T'') will be booked and 
reflected in NAV on the current business day (``T+1''). 
Notwithstanding the foregoing, portfolio trades that are executed 
prior to the opening of the Exchange on any business day may be 
booked and reflected in NAV on such business day. Accordingly, the 
Fund will be able to disclose at the beginning of the business day 
the portfolio that will form the basis for the NAV calculation at 
the end of the business day.
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    In addition, for the Fund, an estimated value, defined in Rule 
5735(c)(3) as the ``Intraday Indicative Value,'' that reflects an 
estimated intraday value of the Fund's portfolio (including the 
Subsidiary's portfolio), will be disseminated. Moreover, the Intraday 
Indicative Value, available on the NASDAQ OMX Information LLC 
proprietary index data service \26\ will be based upon the current 
value for the components of the Disclosed Portfolio and will be updated 
and widely disseminated by one or more major market data vendors and 
broadly displayed at least every 15 seconds during the Regular Market 
Session.
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    \26\ Currently, the NASDAQ OMX Global Index Data Service 
(``GIDS'') is the NASDAQ OMX global index data feed service, 
offering real-time updates, daily summary messages, and access to 
widely followed indexes and Intraday Indicative Values for ETFs. 
GIDS provides investment professionals with the daily information 
needed to track or trade NASDAQ OMX indexes, listed ETFs, or third-
party partner indexes and ETFs.
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    The dissemination of the Intraday Indicative Value, together with 
the Disclosed Portfolio, will allow investors to determine the value of 
the underlying portfolio of the Fund on a daily basis and will provide 
a close estimate of that value throughout the trading day.
    Intra-day, executable price quotations on the securities and other 
assets held by the Fund and the Subsidiary will be available from major 
broker-dealer firms or on the exchange on which they are traded, as 
applicable. Intra-day price information on the securities and other 
assets held by the Fund will also be available through subscription or 
free services that can be accessed by APs and other investors: (a) 
Pricing information for equity securities, investment company 
securities, and equity index futures will be publicly available on 
public financial Web sites, and through subscription services such as 
Bloomberg and Thompson Reuters; and (b) pricing information related to 
currency forward and futures contracts, index options, VIX futures 
contracts, and interest rate futures contracts will be available 
through subscription services such as Bloomberg and Thompson Reuters. 
Pricing information for U.S. Government securities and cash equivalents 
will be available through

[[Page 20267]]

subscription services such as Bloomberg, Markit and Thompson Reuters.
    Investors will also be able to obtain the Fund's Statement of 
Additional Information (``SAI''), the Fund's Shareholder Reports, and 
its Trust's Form N-CSR and Form N-SAR, each of which is filed twice a 
year except the SAI which is filed at least annually. The Fund's SAI 
and Shareholder Reports will be available free upon request from the 
Trust, and those documents and the Form N-CSR and Form N-SAR may be 
viewed on-screen or downloaded from the Commission's Web site at 
www.sec.gov. 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 for the Shares will be published daily in the financial 
section of newspapers. Quotation and last sale information for the 
Shares will be available via Nasdaq proprietary quote and trade 
services, as well as in accordance with the Unlisted Trading Privileges 
and the Consolidated Tape Association plans or through the Options 
Price Reporting Authority, as applicable, for the Shares. Similarly, 
quotation and last sale information for any underlying exchange-traded 
products will also be available via the quote and trade services of 
their respective primary exchanges, as well as in accordance with the 
Unlisted Trading Privileges and the Consolidated Tape Association plans 
for any such underlying exchange-traded products.
    Additional information regarding the Fund and the Shares, including 
investment strategies, risks, creation and redemption procedures, fees, 
portfolio holdings disclosure policies, distributions and taxes will be 
included in the Registration Statement.
Initial and Continued Listing
    The Shares will conform to the initial and continued listing 
criteria applicable to Managed Fund Shares, as set forth under Rule 
5735. The Exchange represents that, for initial and/or continued 
listing, the Fund and the Subsidiary will be in compliance with Rule 
10A-3 \27\ under the Act. A minimum of 100,000 Shares will be 
outstanding at the commencement of trading on the Exchange. The 
Exchange will obtain a representation from the issuer of the Shares 
that the NAV per Share will be calculated daily and that the NAV and 
the Disclosed Portfolio will be made available to all market 
participants at the same time.
---------------------------------------------------------------------------

    \27\ See 17 CFR 240.10A-3.
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Trading Halts
    With respect to trading halts, the Exchange may consider all 
relevant factors in exercising its discretion to halt or suspend 
trading in the Shares of the Fund. Nasdaq will halt trading in the 
Shares under the conditions specified in Nasdaq Rules 4120 and 4121, 
including the trading pauses under Nasdaq Rules 4120(a)(11) and (12). 
Trading 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 trading is not occurring in 
the securities and other assets constituting the Disclosed Portfolio of 
the Fund and the Subsidiary; or (2) whether other unusual conditions or 
circumstances detrimental to the maintenance of a fair and orderly 
market are present. Trading in the Shares also will be subject to Rule 
5735(d)(2)(D), which sets forth circumstances under which Shares of the 
Fund may be halted.
Trading Rules
    Nasdaq deems the Shares to be equity securities, thus rendering 
trading in the Shares subject to Nasdaq's existing rules governing the 
trading of equity securities. Nasdaq will allow trading in the Shares 
from 4:00 a.m. until 8:00 p.m. E.T. The Exchange has appropriate rules 
to facilitate transactions in the Shares during all trading sessions. 
As provided in Nasdaq Rule 5735(b)(3), the minimum price variation for 
quoting and entry of orders in Managed Fund Shares traded on the 
Exchange is $0.01.
Surveillance
    The Exchange represents that trading in the Shares will be subject 
to the existing trading surveillances, administered by both Nasdaq and 
also 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.\28\ 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 applicable federal securities 
laws.
---------------------------------------------------------------------------

    \28\ FINRA surveils trading on the Exchange pursuant to a 
regulatory services agreement. The Exchange is responsible for 
FINRA's performance under this regulatory services agreement.
---------------------------------------------------------------------------

    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. FINRA, on 
behalf of the Exchange, will communicate as needed regarding trading in 
the Shares and other exchange-traded securities and instruments held by 
the Fund and the Subsidiary with other markets and other entities that 
are members of the ISG,\29\ and FINRA may obtain trading information 
regarding trading in the Shares and other exchange-traded securities 
and instruments held by the Fund and the Subsidiary from such markets 
and other entities. In addition, the Exchange may obtain information 
regarding trading in the Shares and other exchange-traded securities 
and instruments held by the Fund and the Subsidiary from markets and 
other entities that are members of ISG, which includes securities and 
futures exchanges, or with which the Exchange has in place a 
comprehensive surveillance sharing agreement.
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    \29\ For a list of the current members of ISG, see 
www.isgportal.org. The Exchange notes that not all components of the 
Disclosed Portfolio may trade on markets that are members of ISG or 
with which the Exchange has in place a comprehensive surveillance 
sharing agreement.
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    In addition, to the extent that the Fund or the Subsidiary were to 
invest in derivative instruments, such instruments held by the Fund or 
the Subsidiary shall have their principal trading market be a member of 
ISG or a market with which the Exchange has a comprehensive 
surveillance sharing agreement.
    In addition, the Exchange also has a general policy prohibiting the 
distribution of material, non-public information by its employees.
Information Circular
    Prior to the commencement of trading, the Exchange will inform its 
members in an Information Circular of the special characteristics and 
risks associated with trading the Shares. Specifically, the Information 
Circular will discuss the following: (1) The procedures for purchases 
and redemptions of Shares in Creation Units (and that Shares are not 
individually redeemable); (2) Nasdaq Rule 2111A, which imposes 
suitability obligations on Nasdaq members with respect to recommending 
transactions in the Shares to customers; (3) how information regarding 
the Intraday Indicative Value is disseminated; (4) the risks involved 
in trading the Shares during the Pre-Market and Post-Market

[[Page 20268]]

Sessions when an updated Intraday Indicative Value will not be 
calculated or publicly disseminated; (5) the requirement that members 
deliver a prospectus to investors purchasing newly issued Shares prior 
to or concurrently with the confirmation of a transaction; and (6) 
trading information.
    In addition, the Information Circular will advise members, prior to 
the commencement of trading, of the prospectus delivery requirements 
applicable to the Fund. Members purchasing Shares from the Fund for 
resale to investors will deliver a prospectus to such investors. The 
Information Circular will also discuss any exemptive, no-action and 
interpretive relief granted by the Commission from any rules under the 
Act.
    Additionally, the Information Circular will reference that the Fund 
is subject to various fees and expenses described in the Registration 
Statement. The Information Circular will also disclose the trading 
hours of the Shares of the Fund and the applicable NAV calculation time 
for the Shares. The Information Circular will disclose that information 
about the Shares of the Fund will be publicly available on the Fund's 
Web site.
2. Statutory Basis
    Nasdaq believes that the proposal is consistent with Section 6(b) 
of the Act in general, and Section 6(b)(5) \30\ of the Act in 
particular, in that it is designed to prevent fraudulent and 
manipulative acts and practices, to promote just and equitable 
principles of trade, to foster cooperation and coordination with 
persons engaged in facilitating transactions in securities, and to 
remove impediments to and perfect the mechanism of a free and open 
market and in general, to protect investors and the public interest.
---------------------------------------------------------------------------

    \30\ 15 U.S.C. 78(f)(b)(5).
---------------------------------------------------------------------------

    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 Nasdaq Rule 5735. The 
Exchange represents that trading in the Shares will be subject to the 
existing trading surveillances, administered by both Nasdaq and FINRA, 
on behalf of the Exchange, which are designed to detect violations of 
Exchange rules and applicable federal securities laws and are adequate 
to properly monitor trading in the Shares in all trading sessions. The 
Adviser is affiliated with a broker-dealer and has implemented a fire 
wall with respect to its broker-dealer affiliate regarding access to 
information concerning the composition and/or changes to the Fund's 
portfolio.\31\ In addition, paragraph (g) of Nasdaq Rule 5735 further 
requires that personnel who make decisions on an open-end fund's 
portfolio composition must be subject to procedures designed to prevent 
the use and dissemination of material, non-public information regarding 
the open-end fund's portfolio. The Fund's and the Subsidiary's 
investments will be consistent with the Fund's investment objective. 
Additionally, the Fund may engage in frequent and active trading of 
portfolio securities to achieve its investment objective. One or more 
of the Strategies may utilize instruments or investment techniques that 
have a leveraging effect on the Fund. This effective leverage occurs 
when the Fund's market exposure exceeds the amounts actually invested. 
Any instance of effective leverage will be covered in accordance with 
guidance promulgated by the Commission and its staff.\32\ The Fund does 
not presently intend to engage in any form of borrowing for investment 
purposes, and will not be operated as a ``leveraged ETF,'' i.e., it 
will not be operated in a manner designed to seek a multiple of the 
performance of an underlying reference index.
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    \31\ To the extent the Fund uses a Sub-Adviser, that Sub-Adviser 
will also implement a fire wall with respect to its broker-dealer 
affiliates, if any, regarding access to information concerning the 
composition and/or changes to the Fund's portfolio.
    \32\ In re Securities Trading Practices of Investment Companies, 
SEC Rel. No. IC-10666 (April 27, 1979).
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    FINRA may obtain information via ISG from other exchanges that are 
members of ISG. In addition, the Exchange may obtain information 
regarding trading in the Shares and other exchange-traded securities 
and instruments held by the Fund and the Subsidiary from markets and 
other entities that are members of ISG, which includes securities and 
futures exchanges, or with which the Exchange has in place a 
comprehensive surveillance sharing agreement. In addition, to the 
extent that the Subsidiary were to invest in derivative instruments, 
such instruments held by the Subsidiary shall have their principal 
trading market be a member of ISG or a market with which the Exchange 
has a comprehensive surveillance sharing agreement.
    If the Fund invests in the Subsidiary, it will invest no more than 
25% of its total assets in the Subsidiary. The Fund may hold up to an 
aggregate amount of 15% of its net assets in illiquid securities or 
other illiquid assets (calculated at the time of investment).
    The proposed rule change is designed to promote just and equitable 
principles of trade and to protect investors and the public interest in 
that the Exchange will obtain a representation from the issuer of the 
Shares that the NAV per Share will be calculated daily and that the NAV 
and the Disclosed Portfolio will be made available to all market 
participants at the same time. In addition, a large amount of 
information will be publicly available regarding the Fund and the 
Shares, thereby promoting market transparency. Moreover, the Intraday 
Indicative Value, available on the NASDAQ OMX Information LLC 
proprietary index data service will be widely disseminated by one or 
more major market data vendors at least every 15 seconds during the 
Regular Market Session. On each business day, before commencement of 
trading in Shares in the Regular Market Session on the Exchange, the 
Fund will disclose on its Web site the Disclosed Portfolio of the Fund 
and the Subsidiary that will form the basis for the Fund's calculation 
of NAV at the end of the business day. 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, and quotation and last sale information for 
the Shares will be available via Nasdaq proprietary quote and trade 
services, as well as in accordance with the Unlisted Trading Privileges 
and the Consolidated Tape Association plans for the Shares. Similarly, 
quotation and last sale information for any underlying exchange-traded 
products will also be available via the quote and trade services of 
their respective primary exchanges, as well as in accordance with the 
Unlisted Trading Privileges and the Consolidated Tape Association plans 
or through the Options Price Reporting Authority, as applicable, for 
any such underlying exchange-traded products. Intra-day price 
information will be available through public financial Web sites or 
subscription services, such as Bloomberg, Markit and Thomson Reuters, 
which can be accessed by Authorized APs and other investors.
    The Fund's Web site will include a form of the prospectus for the 
Fund and additional data relating to NAV and other applicable 
quantitative information. Moreover, prior to the commencement of 
trading, the Exchange will inform its members in an Information 
Circular of the special characteristics and risks associated with

[[Page 20269]]

trading the Shares. Trading in Shares of the Fund will be halted under 
the conditions specified in Nasdaq Rules 4120 and 4121 or because of 
market conditions or for reasons that, in the view of the Exchange, 
make trading in the Shares inadvisable, and trading in the Shares will 
be subject to Nasdaq Rule 5735(d)(2)(D), which sets forth circumstances 
under which Shares of the Fund may be halted. In addition, as noted 
above, investors will have ready access to information regarding the 
Fund's holdings, the Intraday Indicative Value, the Disclosed 
Portfolio, and quotation and last sale information for the Shares.
    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 actively-managed exchange-traded product that 
will enhance competition among market participants, to the benefit of 
investors and the marketplace. As noted above, FINRA, on behalf of the 
Exchange, has in place surveillance procedures relating to trading in 
the Shares and will communicate as needed regarding trading in the 
Shares and other exchange-traded securities and instruments held by the 
Fund and the Subsidiary with other markets and other entities that are 
members of the ISG. FINRA also may obtain trading information regarding 
trading in the Shares and other exchange-traded securities and 
instruments held by the Fund and the Subsidiary from such markets and 
other entities. In addition, the Exchange may obtain information 
regarding trading in the Shares and other exchange-traded securities 
and instruments held by the Fund and the Subsidiary from markets and 
other entities that are members of ISG, which includes securities and 
futures exchanges, or with which the Exchange has in place a 
comprehensive surveillance sharing agreement. Furthermore, as noted 
above, investors will have ready access to information regarding the 
Fund's holdings, the Intraday Indicative Value, the Disclosed 
Portfolio, and quotation and last sale information for the Shares.
    For the above reasons, Nasdaq believes the proposed rule change is 
consistent with the requirements of Section 6(b)(5) of the Act.

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 that 
the proposed rule change will facilitate the listing and trading of an 
additional type of actively-managed exchange-traded fund that will 
enhance competition among market participants, to the benefit of 
investors and the marketplace.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    Written comments were neither solicited nor received.

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 (i) as the Commission may 
designate up to 90 days of such date if it finds such longer period to 
be appropriate and publishes its reasons for so finding or (ii) as to 
which the Exchange consents, the Commission shall: (a) By order approve 
or disapprove such 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-NASDAQ-2014-027 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-NASDAQ-2014-027. 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-NASDAQ-2014-027, and should 
be submitted on or before May 2, 2014.

For the Commission, by the Division of Trading and Markets, pursuant 
to delegated authority.\33\
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    \33\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-08127 Filed 4-10-14; 8:45 am]
BILLING CODE 8011-01-P