Document ID: SEC-2014-1816-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE Arca, Inc.
Posted Date: 2014-10-29T04:00Z

[Federal Register Volume 79, Number 209 (Wednesday, October 29, 2014)]
[Notices]
[Page 64430]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-25673]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-73417; File No. SR-NYSEArca-2014-41]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of 
Designation of a Longer Period for Commission Action on Proceedings To 
Determine Whether To Approve or Disapprove a Proposed Rule Change as 
Modified by Amendment Nos. 1 and 4 Thereto, Relating to Listing and 
Trading of Shares of the Reality Shares DIVS Index ETF Under NYSE Arca 
Equities Rule 5.2(j)(3)

October 23, 2014.
    On April 11, 2014, NYSE Arca, Inc. (``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 Reality Shares DIVS Index ETF (``Fund'') 
(formerly, Reality Shares Isolated Dividend Growth Index ETF) under 
NYSE Arca Equities Rule 5.2(j)(3). The proposed rule change was 
published for comment in the Federal Register on April 30, 2014.\3\ On 
May 6, 2014, the Exchange filed Amendment No. 1 to the proposed rule 
change, which amended and replaced the proposed rule change in its 
entirety.\4\ On June 6, 2014, the Exchange filed Amendment No. 4 to the 
proposed rule change.\5\ On June 13, 2014, pursuant to Section 19(b)(2) 
of the Act,\6\ 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 
proposed rule change.\7\ On July 29, 2014, the Commission instituted 
proceedings under Section 19(b)(2)(B) of the Act \8\ to determine 
whether to approve or disapprove the proposed rule change.\9\ In 
response to the Order Instituting Proceedings, the Commission received 
one comment letter on the proposal.\10\
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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. 72015 (Apr. 24, 
2014), 79 FR 24475 (``Notice'').
    \4\ In Amendment No. 1, the Exchange clarified the valuation of 
investments for purposes of calculating net asset value, provided 
additional details regarding the dissemination of the Disclosed 
Portfolio, and made other minor technical edits to the proposed rule 
change. Amendment No. 1 provided clarification to the proposed rule 
change, and because it does not materially affect the substance of 
the proposed rule change or raise novel or unique regulatory issues, 
Amendment No. 1 is not subject to notice and comment.
    \5\ The Exchange filed Amendment No. 2 on June 4, 2014 and 
withdrew it on June 5, 2014, and filed Amendment No. 3 on June 5, 
2014 and withdrew it on June 6, 2014. Amendment No. 4 supersedes 
both Amendment Nos. 2 and 3. In Amendment No. 4, the Exchange 
amended the proposal to reflect a name change to the Fund and the 
underlying index. Specifically, the Exchange replaced each reference 
to ``Reality Shares Isolated Dividend Growth Index ETF'' in the 
proposal with ``Reality Shares DIVS Index ETF'' and replaced each 
reference to ``Reality Shares Isolated Dividend Growth Index'' in 
the proposal with ``Reality Shares DIVS Index.'' Amendment No. 4 is 
a technical amendment and is not subject to notice and comment as it 
does not materially affect the substance of the filing.
    \6\ 15 U.S.C. 78s(b)(2).
    \7\ See Securities Exchange Act Release No. 72385, 79 FR 35205 
(Jun. 19, 2014). The Commission designated a longer period within 
which to take action on the proposed rule change and designated July 
29, 2014, as the date by which it should approve, disapprove, or 
institute proceedings to determine whether to disapprove the 
proposed rule change.
    \8\ 15 U.S.C. 78s(b)(2)(B).
    \9\ See Securities Exchange Act Release No. 72714, 79 FR 45574 
(Aug. 5, 2014) (``Order Instituting Proceedings''). Specifically, 
the Commission instituted proceedings to allow for additional 
analysis of the proposed rule change's consistency with Section 
6(b)(5) of the Act, which requires, among other things, that the 
rules of a national securities exchange be ``designed to prevent 
fraudulent and manipulative acts and practices, to promote just and 
equitable principles of trade,'' and ``to protect investors and the 
public interest.'' See id.
    \10\ See Letter from Eric Ervin, President, Reality Shares ETF 
Trust and Reality Shares Advisors, LLC, and President and CEO, 
Reality Shares, Inc., to Kevin M. O'Neill, Deputy Secretary, 
Commission, dated August 22, 2014.
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    Section 19(b)(2) of the Act \11\ provides that, after initiating 
disapproval proceedings, the Commission shall issue an order approving 
or disapproving the proposed rule change not later than 180 days after 
the date of publication of notice of filing of the proposed rule 
change. The Commission may, however, extend the period for issuing an 
order approving or disapproving the proposed rule change by not more 
than 60 days if the Commission determines that a longer period is 
appropriate and publishes the reasons for that determination. The 
proposed rule change was published for notice and comment in the 
Federal Register on April 30, 2014.\12\ The 180th day after publication 
of the notice of the filing of the proposed rule change in the Federal 
Register is October 27, 2014, and the 240th day after publication of 
the notice of the filing of the proposed rule change in the Federal 
Register is December 26, 2014.
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    \11\ 15 U.S.C. 78s(b)(2).
    \12\ See supra note 3.
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    The Commission finds it appropriate to designate a longer period 
within which to issue an order approving or disapproving the proposed 
rule change so that it has sufficient time to consider the proposed 
rule change, including the matters raised in the comment letter to the 
proposed rule change.
    Accordingly, the Commission, pursuant to Section 19(b)(2) of the 
Act,\13\ designates December 26, 2014 as the date by which the 
Commission shall either approve or disapprove the proposed rule change 
(File No. SR-NYSEArca-2014-41).
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    \13\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(57).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-25673 Filed 10-28-14; 8:45 am]
BILLING CODE 8011-01-P