Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Regarding the PIMCO Intermediate Municipal Bond Active Exchange-Traded Fund, 58794-58796 [2015-24715]
Download as PDF
<![CDATA[
58794
Federal Register / Vol. 80, No. 189 / Wednesday, September 30, 2015 / Notices
The proposed changes to OPIC–248
clarify existing questions, incorporate
sector-specific development impact
questions, and eliminate ineffective
questions in an effort to harmonize
development impact indicators with
other Development Finance Institutions
(‘‘DFIs’’). OPIC is a signatory to a
‘‘Memorandum of Understanding’’ with
25 partnering DFIs to harmonize
developmental impact metrics where
possible. The goal of this effort is to
reduce the burden on clients that seek
financing from multiple DFIs and to
instill best practices in the collection
and the reporting on OPIC’s
developmental impacts. In order to
minimize the reporting burden on
respondents, OPIC has designed OPIC–
248 as an electronic form that has
multiple drop-down options, in which
the respondent only responds to
questions that are applicable to their
investment.
Comments must be received
within thirty (30) calendar days of
publication of this Notice.
ADDRESSES: Mail all comments and
requests for copies of the subject form
to OPIC’s Agency Submitting Officer:
James Bobbitt, Overseas Private
Investment Corporation, 1100 New York
Avenue NW., Washington, DC 20527.
See SUPPLEMENTARY INFORMATION for
other information about filing.
FOR FURTHER INFORMATION CONTACT:
OPIC Agency Submitting Officer: James
Bobbitt, (202) 336–8558.
SUPPLEMENTARY INFORMATION: OPIC
received no comments in response to
the sixty (60) day notice published in
Federal Register volume 80 page 38241
on July 2, 2015. All mailed comments
and requests for copies of the subject
form should include form number
OPIC–248 on both the envelope and in
the subject line of the letter. Electronic
comments and requests for copies of the
subject form may be sent to
James.Bobbitt@opic.gov, subject line
OPIC248.
DATES:
mstockstill on DSK4VPTVN1PROD with NOTICES
Summary Form Under Review
Type of Request: Revision of a
currently approved information
collection.
Title: Office of Investment Policy
Questionnaire.
Form Number: OPIC–248.
Frequency of Use: One per investor
per project.
Type of Respondents: Business or
other institution (except farms);
individuals.
Standard Industrial Classification
Codes: All.
VerDate Sep<11>2014
18:27 Sep 29, 2015
Jkt 235001
Description of Affected Public: U.S.
companies or citizens investing
overseas.
Reporting Hours: 644 (2.8 hours per
form).
Number of Responses: 230 per year.
Federal Cost: $28,389.
Authority for Information Collection:
Sections 231, 231A, 239(d), 239(h),
240A of the Foreign Assistance Act of
1961, as amended.
Abstract (Needs and Uses): The Office
of Investment Policy Questionnaire is
the principal document used by OPIC to
prepare a developmental impact profile
and determine the projected impact on
the United States, as well as to
determine the project’s compliance with
environmental and labor policies, as
consistent with OPIC’s authorizing
legislation.
Dated: September 25, 2015.
Nichole Skoyles,
Administrative Counsel, Department of Legal
Affairs.
[FR Doc. 2015–24798 Filed 9–29–15; 8:45 am]
BILLING CODE 3210–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–75978; File No. SR–
NYSEArca–2015–79]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Regarding the PIMCO
Intermediate Municipal 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.
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 average portfolio duration
of the PIMCO Intermediate Municipal
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
PO 00000
Frm 00093
Fmt 4703
Sfmt 4703
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 Intermediate
Municipal Bond Active ExchangeTraded Fund (‘‘Fund’’) under NYSE
Arca Equities Rule 8.600,4 which
governs the listing and trading of
Managed Fund Shares.5 The Shares are
offered by PIMCO ETF Trust (the
‘‘Trust’’), a statutory trust organized
under the laws of the State of Delaware
4 See Securities Exchange Act Release No. 60619
(September 3, 2009), 74 FR 46820 (September 11,
2009) (SR–NYSEArca–2009–79) (notice of filing of
proposed rule change relating to listing and trading
of Shares of the Fund and four other funds of the
PIMCO ETF Trust on the Exchange) (‘‘Prior
Notice’’); Securities Exchange Act Release No.
60981 (November 10, 2009), 74 FR 59594
(November 11, 2009) (SR–NYSEArca–2009–79)
(order approving listing and trading of Shares of the
Fund and four other funds of the PIMCO ETF Trust
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.
E:\FR\FM\30SEN1.SGM
30SEN1
Federal Register / Vol. 80, No. 189 / Wednesday, September 30, 2015 / Notices
mstockstill on DSK4VPTVN1PROD with NOTICES
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.
According to the Registration
Statement and the Prior Release, the
average portfolio duration of the Fund
normally varies from three to eight
years, based on PIMCO’s forecast for
interest rates.7
Going forward, the average portfolio
duration of the Fund normally would
vary within (negative) 2 years to
positive 4 years of the portfolio duration
of the securities comprising the Barclays
1–15 Year Municipal Bond Index
(‘‘Index’’), as calculated by PIMCO,
which as of June 30, 2015 was 5.11
years.8 Thus, as of June 30, 2015,
average portfolio duration of the Fund
normally would vary within
approximately 3.11 years and 9.11
years.
The Adviser represents that the
proposed change to the average portfolio
duration of the Fund is consistent with
the Fund’s investment objective, and
will further assist the Adviser to achieve
such investment objective. Except for
the change noted above, all other
representations made in the Prior
Release remain unchanged.9 The Fund
will continue to comply with all initial
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 Intermediate Municipal Bond Strategy Fund
to PIMCO Intermediate Municipal Bond ExchangeTraded Fund was reflected in an amendment to the
Registration Statement, effective October 31, 2012.
A change to the name of the Fund from PIMCO
Intermediate Municipal Bond Exchange-Traded
Fund to PIMCO Intermediate Municipal Bond
Active Exchange-Traded Fund was reflected in an
amendment to the Registration Statement, effective
October 31, 2014. 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’’).
7 Duration is a measure used to determine the
sensitivity of a security’s price to changes in
interest rates. The longer a security’s duration, the
more sensitive it will be to changes in interest rates.
8 The Exchange notes that the Commission has
approved the listing and trading of other issues of
Managed Fund Shares that have applied a
comparable average portfolio duration to that
proposed for the Fund. See, e.g., the Prior Release,
note 4, supra.
9 See note 4, supra. All terms referenced but not
defined herein are defined in the Prior Release.
VerDate Sep<11>2014
18:27 Sep 29, 2015
Jkt 235001
and continued listing requirements
under NYSE Arca Equities Rule 8.600.
The Adviser represents that the
investment objective of the Fund is not
changing.
2. Statutory Basis
The basis under the Act for this
proposed rule change is the requirement
under Section 6(b)(5) 10 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.
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
Exchange believes that the change to the
average portfolio duration of the Fund
will not adversely impact investors or
Exchange trading. Such change would
accommodate a duration that, while
generally comparable to the existing
average portfolio duration normally of
three to eight years, will provide the
Fund with additional flexibility in
managing the duration of the Fund’s
holdings using the average portfolio
duration of the Barclays 1–15 Year
Municipal Bond Index, as calculated by
PIMCO, as the benchmark against which
the Fund’s average portfolio duration
would be measured. Further, a more
flexible duration bandwidth will allow
the Fund to respond more effectively to
changing market conditions. The
Index’s average duration, as calculated
by PIMCO, is typically published
monthly, while the Fund’s average
portfolio duration is typically available
daily, on the Fund’s Web site.
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
municipal 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.
10 15
PO 00000
U.S.C. 78f(b)(5).
Frm 00094
Fmt 4703
Sfmt 4703
58795
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 11 and Rule 19b–4(f)(6)
thereunder.12
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 13 to
determine whether the proposed rule
change should be approved or
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 (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
NYSEArca–2015–79 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–2015–79. This
file number should be included on the
subject line if email is used. To help the
11 15
U.S.C. 78s(b)(3)(A).
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.
13 15 U.S.C. 78s(b)(2)(B).
12 17
E:\FR\FM\30SEN1.SGM
30SEN1
58796
Federal Register / Vol. 80, No. 189 / Wednesday, September 30, 2015 / Notices
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 (https://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–2015–79 and
should be submitted on or before
October 21, 2015.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015–24715 Filed 9–29–15; 8:45 am]
mstockstill on DSK4VPTVN1PROD with NOTICES
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–75980; File No. 4–668]
Joint Industry Plan; Order Approving
Amendment No. 2 to the National
Market System Plan Governing the
Process of Selecting a Plan Processor
and Developing a Plan for the
Consolidated Audit Trail by BATS
Exchange, Inc., BATS–Y Exchange,
Inc., BOX Options Exchange LLC, C2
Options Exchange, Incorporated,
Chicago Board Options Exchange,
Incorporated, Chicago Stock
Exchange, Inc., EDGA Exchange, Inc.,
EDGX Exchange, Inc., Financial
Industry Regulatory Authority, Inc.,
International Securities Exchange,
LLC, ISE Gemini, LLC, Miami
International Securities Exchange LLC,
NASDAQ OMX BX, Inc., NASDAQ OMX
PHLX LLC, The NASDAQ Stock Market
LLC, National Stock Exchange, Inc.,
New York Stock Exchange LLC, NYSE
MKT LLC, and NYSE Arca, Inc.
September 24, 2015.
I. Introduction
On March 6, 2015, BATS Exchange,
Inc., BATS–Y Exchange, Inc., BOX
Options Exchange LLC, C2 Options
Exchange, Incorporated, Chicago Board
Options Exchange, Incorporated,
Chicago Stock Exchange, Inc., EDGA
Exchange, Inc., EDGX Exchange, Inc.,
Financial Industry Regulatory
Authority, Inc., International Securities
Exchange, LLC, ISE Gemini, LLC, Miami
International Securities Exchange LLC,
NASDAQ OMX BX, Inc., NASDAQ
OMX PHLX LLC, The NASDAQ Stock
Market LLC, National Stock Exchange,
Inc., New York Stock Exchange LLC,
NYSE MKT LLC, and NYSE Arca, Inc.
(collectively, ‘‘SROs’’ or ‘‘Participants’’)
filed with the Securities and Exchange
Commission (‘‘Commission’’ or ‘‘SEC’’)
pursuant to Section 11A of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 608 thereunder,2 an
amendment (‘‘Amendment No. 2’’) to
the National Market System (‘‘NMS’’)
Plan Governing the Process of Selecting
a Plan Processor and Developing a Plan
for the Consolidated Audit Trail
(‘‘Selection Plan’’).3 Amendment No. 2
was published for comment in the
1 15
U.S.C. 78k–1.
CFR 242.608.
3 The Selection Plan is an NMS Plan approved by
the Commission pursuant to Section 11A of the Act
and Rule 608 thereunder. See Securities Exchange
Act Release No. 71596 (Feb. 21, 2014), 79 FR 11152
(Feb. 27, 2014) (‘‘Order Approving Selection Plan’’);
see also Securities Exchange Act Release No. 70892
(Nov. 15, 2013), 78 FR 69910 (Nov. 21, 2013)
(‘‘Notice of Selection Plan’’).
2 17
14 17
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
18:27 Sep 29, 2015
Jkt 235001
PO 00000
Frm 00095
Fmt 4703
Sfmt 4703
Federal Register on June 23, 2015.4 The
Commission received no comment
letters on this proposal. This Order
approves Amendment No. 2 to the
Selection Plan.
II. Background and Description of the
Proposal
A. Background
The Commission adopted Rule 613 on
July 11, 2012, to require the SROs to
jointly submit an NMS plan to create,
implement, and maintain a consolidated
audit trail (‘‘CAT NMS Plan’’).5 In
response, the SROs engaged in a request
for proposal (‘‘RFP’’) process to help
them develop an NMS Plan proposal
and solicit bids (‘‘Bids’’) for the role of
Plan Processor 6 to build, operate,
administer, and maintain the
consolidated audit trail. The Selection
Plan, which was approved by the
Commission on February 21, 2014, sets
forth the process by which the
Participants will review, evaluate, and
narrow down the Bids submitted in
response to the RFP to ‘‘Shortlisted
Bids,’’ and ultimately select the Plan
Processor following Commission
approval of the proposed CAT NMS
Plan.7 Amendment No.1 to the Selection
Plan, which the Commission approved
on June 17, 2015, among other things,
permits the SROs to vote to narrow the
set of Shortlisted Bids to an even shorter
list prior to Commission approval of the
proposed CAT NMS Plan.8 The
Selection Plan, as amended, provides
that the SROs’ Selection Committee will
vote to select the Plan Processor from
among the remaining bidders, using a
two-round voting process, within two
months of Commission approval of the
proposed CAT NMS Plan.9
B. Description of the Proposal
Amendment No. 1 included a
provision providing that no SRO shall
vote in the process narrowing the set of
Shortlisted Bidders if a Bid submitted
by the SRO or an Affiliate of the SRO
is a Shortlisted Bid or if the SRO or its
Affiliate is included as a material
subcontractor as part of a Bid (a
4 See Securities Exchange Act Release No. 75193
(June 17, 2015), 80 FR 36006 (June 23, 2015)
(‘‘Notice of Amendment No. 2’’).
5 Securities Exchange Act Release No. 67457 (July
18, 2012), 77 FR 45722 (Aug. 1, 2012).
6 Unless otherwise noted, capitalized terms are
used as defined in Rule 613, in the Selection Plan,
or in this Order.
7 See Order Approving Selection Plan, supra note
3.
8 See Securities Exchange Act Release No. 75192,
80 FR 36028 (June 23, 2015) (‘‘Order Approving
Amendment No. 1’’).
9 See Order Approving Selection Plan, supra note
3; Order Approving Amendment No. 1, supra note
8.
E:\FR\FM\30SEN1.SGM
30SEN1
]]>Agencies
[Federal Register Volume 80, Number 189 (Wednesday, September 30, 2015)]
[Notices]
[Pages 58794-58796]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-24715]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-75978; File No. SR-NYSEArca-2015-79]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Regarding the PIMCO
Intermediate Municipal 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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
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 average portfolio
duration of the PIMCO Intermediate Municipal 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
Intermediate Municipal 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 offered by PIMCO ETF
Trust (the ``Trust''), a statutory trust organized under the laws of
the State of Delaware
[[Page 58795]]
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.
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 60619 (September 3,
2009), 74 FR 46820 (September 11, 2009) (SR-NYSEArca-2009-79)
(notice of filing of proposed rule change relating to listing and
trading of Shares of the Fund and four other funds of the PIMCO ETF
Trust on the Exchange) (``Prior Notice''); Securities Exchange Act
Release No. 60981 (November 10, 2009), 74 FR 59594 (November 11,
2009) (SR-NYSEArca-2009-79) (order approving listing and trading of
Shares of the Fund and four other funds of the PIMCO ETF Trust 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 Intermediate Municipal
Bond Strategy Fund to PIMCO Intermediate Municipal Bond Exchange-
Traded Fund was reflected in an amendment to the Registration
Statement, effective October 31, 2012. A change to the name of the
Fund from PIMCO Intermediate Municipal Bond Exchange-Traded Fund to
PIMCO Intermediate Municipal Bond Active Exchange-Traded Fund was
reflected in an amendment to the Registration Statement, effective
October 31, 2014. 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'').
---------------------------------------------------------------------------
According to the Registration Statement and the Prior Release, the
average portfolio duration of the Fund normally varies from three to
eight years, based on PIMCO's forecast for interest rates.\7\
---------------------------------------------------------------------------
\7\ Duration is a measure used to determine the sensitivity of a
security's price to changes in interest rates. The longer a
security's duration, the more sensitive it will be to changes in
interest rates.
---------------------------------------------------------------------------
Going forward, the average portfolio duration of the Fund normally
would vary within (negative) 2 years to positive 4 years of the
portfolio duration of the securities comprising the Barclays 1-15 Year
Municipal Bond Index (``Index''), as calculated by PIMCO, which as of
June 30, 2015 was 5.11 years.\8\ Thus, as of June 30, 2015, average
portfolio duration of the Fund normally would vary within approximately
3.11 years and 9.11 years.
---------------------------------------------------------------------------
\8\ The Exchange notes that the Commission has approved the
listing and trading of other issues of Managed Fund Shares that have
applied a comparable average portfolio duration to that proposed for
the Fund. See, e.g., the Prior Release, note 4, supra.
---------------------------------------------------------------------------
The Adviser represents that the proposed change to the average
portfolio duration of the Fund is consistent with the Fund's investment
objective, and will further assist the Adviser to achieve such
investment objective. Except for the change noted above, all other
representations made in the Prior Release remain unchanged.\9\ The Fund
will continue to comply with all initial and continued listing
requirements under NYSE Arca Equities Rule 8.600.
---------------------------------------------------------------------------
\9\ See note 4, supra. All terms referenced but not defined
herein are defined in the Prior Release.
---------------------------------------------------------------------------
The Adviser represents that the investment objective of the Fund is
not changing.
2. Statutory Basis
The basis under the Act for this proposed rule change is the
requirement under Section 6(b)(5) \10\ 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.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
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 Exchange believes that the change to the average
portfolio duration of the Fund will not adversely impact investors or
Exchange trading. Such change would accommodate a duration that, while
generally comparable to the existing average portfolio duration
normally of three to eight years, will provide the Fund with additional
flexibility in managing the duration of the Fund's holdings using the
average portfolio duration of the Barclays 1-15 Year Municipal Bond
Index, as calculated by PIMCO, as the benchmark against which the
Fund's average portfolio duration would be measured. Further, a more
flexible duration bandwidth will allow the Fund to respond more
effectively to changing market conditions. The Index's average
duration, as calculated by PIMCO, is typically published monthly, while
the Fund's average portfolio duration is typically available daily, on
the Fund's Web site.
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 municipal 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 \11\ and Rule 19b-
4(f)(6) thereunder.\12\
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 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.
---------------------------------------------------------------------------
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 \13\ to determine whether the proposed
rule change should be approved or disapproved.
---------------------------------------------------------------------------
\13\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------
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 (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-NYSEArca-2015-79 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-2015-79. This
file number should be included on the subject line if email is used. To
help the
[[Page 58796]]
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 (https://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-2015-79 and should be submitted on or before October 21, 2015.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
---------------------------------------------------------------------------
\14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-24715 Filed 9-29-15; 8:45 am]
BILLING CODE 8011-01-P
