Self-Regulatory Organizations; NYSE Arca, Inc.; Order Granting Approval of Proposed Rule Change Relating to Listing and Trading Shares of Jefferies Commodity Real Return ETF, 63530-63532 [2010-25949]
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Federal Register / Vol. 75, No. 199 / Friday, October 15, 2010 / Notices
paragraph (d). In addition, because
proposed paragraph (d) makes clear that
the obligations of that paragraph apply
during Regular Trading Hours, the
Exchange proposes to delete paragraph
(b) of current Rule 11.8 related to the
[sic] when the current quoting
obligations apply. Finally, the Exchange
proposes deletion of current Rule
11.8(e), related to temporary
withdrawal, because Exchange Rule
11.5(d) already provides a Market Maker
with the ability to withdraw his or her
status as a Market Maker and Rule
11.7(b) already provides a Market Maker
with the ability to terminate his or her
registration in a security. The Exchange
believes that these mechanisms are
sufficient for a Market Maker to
withdraw or terminate its registration in
a security or as a Market Maker without
the need for an additional provision
related to withdrawal.
mstockstill on DSKH9S0YB1PROD with NOTICES
2. Statutory Basis
The Exchange believes that its
proposal is consistent with the
requirements of the Act and the rules
and regulations thereunder that are
applicable to a national securities
exchange, and, in particular, with the
requirements of Section 6(b) of the Act.7
In particular, the proposed change is
consistent with Section 6(b)(5) of the
Act,8 because it would promote just and
equitable principles of trade, remove
impediments to, and perfect the
mechanism of, a free and open market
and a national market system, and, in
general, protect investors and the public
interest. The proposed rule change is
also designed to support the principles
of Section 11A(a)(1) 9 of the Act in that
it seeks to assure fair competition
among brokers and dealers and among
exchange markets. The Exchange
believes that the proposed rule meets
these requirements in that it promotes
uniformity across markets concerning
minimum market maker quotation
requirements. The Exchange believes
that the proposed optional functionality
to assist Exchange Market Makers in
maintaining continuous, two-sided limit
orders in the securities in which they
are registered will encourage Market
Makers to remain registered with and
trade on the Exchange, thus providing
valuable liquidity to the Exchange; at
the same time, the Exchange believes
that the proposed functionality will
keep Exchange generated quotations
within reasonable reach of the NBBO
and that the elimination of ‘‘stub quotes’’
7 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
9 15 U.S.C. 78k–1(a)(1).
8 15
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16:01 Oct 14, 2010
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is important for the protection of
investors and the public interest.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change imposes any
burden on competition.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
The Exchange has neither solicited
nor received written comments on the
proposed rule change.
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
up to 90 days (i) as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding or (ii) as to which
the self-regulatory organization
consents, the Commission will:
(A) By order approve or disapprove
the proposed rule change, or
(B) institute proceedings to determine
whether the proposed rule change
should be disapproved.
IV. Solicitation of Comments
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 website 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
a.m. and 3 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
publicly available. All submissions
should refer to File Number SR–BYX–
2010–001 and should be submitted on
or before November 5, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–25952 Filed 10–14–10; 8:45 am]
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
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–63067; File No. SR–
NYSEArca-2010–78]
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–BYX–2010–001 on the
subject line.
Self-Regulatory Organizations; NYSE
Arca, Inc.; Order Granting Approval of
Proposed Rule Change Relating to
Listing and Trading Shares of Jefferies
Commodity Real Return ETF
Paper Comments
I. Introduction
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
Station Place, 100 F Street, NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–BYX–2010–001. This file
number should be included on the
subject line if e-mail 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 (https://www.sec.gov/
rules/sro.shtml). Copies of the
On August 17, 2010, NYSE Arca, Inc.
(‘‘NYSE Arca’’ or ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
19b-4 thereunder,2 a proposed rule
change to list and trade shares (‘‘Shares’’)
of Jefferies Commodity Real Return ETF
(the ‘‘Fund’’). The proposed rule change
was published for comment in the
PO 00000
Frm 00098
Fmt 4703
Sfmt 4703
October 8, 2010.
10 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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Federal Register / Vol. 75, No. 199 / Friday, October 15, 2010 / Notices
Federal Register on September 3, 2010.3
The Commission received no comments
on the proposal. This order approves the
proposed rule change.
II. Description of the Proposal
The Exchange proposes to list and
trade the Shares pursuant to NYSE Arca
Equities Rule 8.200, Commentary .02,
which governs the listing and trading of
Trust Issuer Receipts (‘‘TIRs’’) that invest
in ‘‘Financial Instruments.’’ The
Exchange represents that the Shares
satisfy the requirements of NYSE Arca
Equities Rule 8.200, Commentary .02,
and thereby qualify for listing on the
Exchange.
As described in greater detail in the
Notice, the Fund will invest
substantially all of its assets in
exchange-traded futures in commodities
that comprise the Thomson Reuters/
Jefferies CRB 3 Month Forward Index
(‘‘Index’’), or in other derivatives. The
Fund establishes long positions in
futures contracts on the nineteen
physical commodities that comprise the
Index (‘‘Index Commodities’’) with the
goal of tracking the changes, either
positive or negative, to the Index over
time. The Managing Owner of the Fund
adjusts the Fund’s portfolio from time to
time to conform to periodic changes in
the identity and/or relative weighting of
the Index Commodities.
The Exchange deems the Shares to be
equity securities, which subjects trading
in the Shares to the Exchange’s existing
rules governing the trading of equity
securities, and has represented that
trading in the Shares on the Exchange
will occur in accordance with NYSE
Arca Equities Rule 8.200(e). The
Exchange has also represented that it
has appropriate rules to facilitate
transactions in the Shares during all
trading sessions.
Additional details regarding the
Shares and the Fund including, among
other things, the organization and
structure of the Fund, the dissemination
and availability of information about the
Fund and the Index, trading halts,
applicable trading rules, surveillance,
and the Information Bulletin can be
found in the Notice.4
mstockstill on DSKH9S0YB1PROD with NOTICES
III. Discussion and Commission’s
Findings
After careful consideration, the
Commission finds that the proposed
rule change is consistent with the
requirements of the Act and the rules
and regulations thereunder applicable to
3 See Securities Exchange Act Release No. 62768
(August 26, 2010), 75 FR 54199 (‘‘Notice’’).
4 See supra note 3.
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16:01 Oct 14, 2010
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a national securities exchange.5 In
particular, the Commission finds that
the proposed rule change is consistent
with the requirements of Section 6(b)(5)
of the Act,6 which requires, among other
things, that the Exchange’s rules be
designed to promote just and equitable
principles of trade, to foster cooperation
and coordination with persons engaged
in facilitating transactions in securities,
to remove impediments to and perfect
the mechanism of a free and open
market and a national market system,
and, in general, to protect investors and
the public interest.
The Commission notes that it has
previously permitted the listing and
trading of TIRs based on commodities
indexes.7 In addition, the Shares will be
listed and traded pursuant to
Commentary .02 to NYSE Arca Equities
Rule 8.200, and the Exchange represents
that the Shares will conform to the
existing initial and continued listing
criteria under this rule.
In addition, the Commission finds
that the proposal to list and trade the
Shares on the Exchange is consistent
with Section 11A(a)(1)(C)(iii) of the
Act,8 which sets forth Congress’ finding
that it is in the public interest and
appropriate for the protection of
investors and the maintenance of fair
and orderly markets to assure the
availability to brokers, dealers and
investors of information with respect to
quotations for and transactions in
securities.
Quotation and last-sale information
for the Shares will be disseminated
through the facilities of the
Consolidated Tape Association. The
Intra-day Indicative Value (‘‘IIV’’) will be
published by the Fund’s Index
Calculation Agent every 15 seconds
through one or more major market data
vendors and on the Fund’s Managing
Owner’s Web site. The Net Asset Value
(‘‘NAV’’) of the Fund will be published
by the Managing Owner of the Fund,
and will be disseminated to all market
participants at the same time. The
Exchange has also noted that
information regarding the closing prices
and settlement prices of futures on the
Index Commodities are readily available
from Web sites of the applicable futures
exchanges, automated quotation
5 In approving this proposed rule change, the
Commission notes that it has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
6 15 U.S.C. 78f(b)(5).
7 See Securities Exchange Act Release No. 58457
(September 3, 2008), 73 FR 52711 (September 10,
2008) (SR–NYSEArca–2008–91) (Listing of fourteen
funds of the Currency and Commodity Trust
pursuant to Rule 8.200, Commentary .02.)
8 15 U.S.C. 78k–1(a)(1)(C)(iii).
PO 00000
Frm 00099
Fmt 4703
Sfmt 4703
63531
systems, published or other public
sources, or online information services
such as Bloomberg or Reuters. The
relevant futures exchanges also provide
delayed futures information on current
and past trading sessions and market
news free of charge on their respective
Web sites. Moreover, the Fund’s Web
site (https://www.jamfunds.com/jcis) will
also disseminate the Fund holdings on
a daily basis.
The Exchange shall make available on
its Web site daily trading volume of the
Shares, closing prices of the Shares, and
the corresponding NAV. In addition, the
Fund’s website will provide the
following information: (1) The current
net asset value per share daily and the
prior business day’s NAV and the
reported closing price; (2) the mid-point
of the bid-ask price in relation to the
NAV as of the time the NAV is
calculated; (3) a calculation of the
premium or discount of such price
against such NAV; (4) data in chart
format displaying the frequency
distribution of discounts and premiums
of the Bid/Ask Price against the NAV,
within appropriate ranges, for each of
the four previous calendar quarters; (5)
the Fund’s prospectus; and (6) other
applicable quantitative information.
The Commission further believes that
the proposal to list and trade the Shares
is reasonably designed to promote fair
disclosure of information that may be
necessary to price the Shares
appropriately and to prevent trading
when a reasonable degree of
transparency cannot be assured. The
Exchange has represented that the NAV
for the Fund will be disseminated to all
market participants at the same time. If
the Exchange becomes aware that the
NAV with respect to the Shares is not
being disseminated to all market
participants at the same time, it will halt
trading in the Shares until such time as
the NAV is available to all market
participants. Furthermore, the Exchange
has represented that it may halt trading
during the day in which the
interruption to the dissemination of the
IIV, the Index or the value of the
underlying futures occurs.
With respect to trading halts, the
Exchange may consider all relevant
factors in exercising its discretion to
halt or suspend trading in the Shares.
Trading on the Exchange in the Shares
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 underlying
futures contracts; or (2) whether other
unusual conditions or circumstances
detrimental to the maintenance of a fair
E:\FR\FM\15OCN1.SGM
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63532
Federal Register / Vol. 75, No. 199 / Friday, October 15, 2010 / Notices
mstockstill on DSKH9S0YB1PROD with NOTICES
and orderly market are present. In
addition, trading in Shares will be
subject to trading halts caused by
extraordinary market volatility pursuant
to the Exchange’s ‘‘circuit breaker’’ rule
or by the halt or suspension of trading
in the underlying futures contracts.
In addition, NYSE Arca Equities Rule
8.200(e) sets forth certain requirements
for ETP Holders acting as registered
Market Makers in the Shares to facilitate
surveillance.
In support of this proposal, the
Exchange has made representations,
including:
(1) The Fund will meet the initial and
continued listing criteria under NYSE
Arca Equities Rule 8.200, Commentary
.02.
(2) The Exchange’s surveillance
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.
(3) Prior to the commencement of
trading, the Exchange will inform its
ETP Holders in an Information Bulletin
of the special characteristics and risks
associated with trading the Shares.
Specifically, the Information Bulletin
will discuss the following: (a) The risks
involved in trading the Shares during
the Opening and Late Trading Sessions
when an updated IIV will not be
calculated or publicly disseminated; (b)
the procedures for purchases and
redemptions of Shares in Baskets
(including noting that Shares are not
individually redeemable); (c) NYSE
Arca Equities Rule 9.2(a), which
imposes a duty of due diligence on its
ETP Holders to learn the essential facts
relating to every customer prior to
trading the Shares; (d) how information
regarding the IIV is disseminated; (e) the
requirement that ETP Holders deliver a
prospectus to investors purchasing
newly issued Shares prior to or
concurrently with the confirmation of a
transaction; and (f) trading information.
This approval order is based on the
Exchange’s representations.
For the foregoing reasons, the
Commission finds that the proposed
rule change is consistent with Section
6(b)(5) of the Act 9 and the rules and
regulations thereunder applicable to a
national securities exchange.
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,10 that the
proposed rule change (SR–NYSEArca–
2010–78), be, and it hereby is, approved.
9 15
U.S.C. 78f(b)(5).
U.S.C. 78s(b)(2).
10 15
VerDate Mar<15>2010
16:01 Oct 14, 2010
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–25949 Filed 10–14–10; 8:45 am]
BILLING CODE 8011–01–P
DEPARTMENT OF STATE
[Public Notice: 7211]
In the Matter of the Review of the
Designation of the Armed Islamic
Group and All Associated Aliases as
Foreign Terrorist Organizations
Pursuant to Section 219 of the
Immigration and Nationality Act, as
Amended
Based upon a review of the
Administrative Record assembled in
this matter, and in consultation with the
Attorney General and the Secretary of
the Treasury, I conclude that the
circumstances that were the basis for the
2003 re-designation of the Armed
Islamic Group (GIA) as foreign terrorist
organization have changed in such a
manner as to warrant revocation of the
designation. Although the GIA no longer
meets the criteria for designation as a
foreign terrorist organization, its
remnants and some senior leaders have
joined al Qa’ida in the Islamic Maghreb
(AQIM), a designated Foreign Terrorist
Organization.
Therefore, I hereby determine that the
designation of the Armed Islamic Group
as a foreign terrorist organization,
pursuant to Section 219 of the
Immigration and Nationality Act, as
amended (8 U.S.C. 1189), shall be
revoked.
This determination shall be published
in the Federal Register.
Dated: September 28, 2010.
Hillary Rodham Clinton,
Secretary of State.
[FR Doc. 2010–26082 Filed 10–14–10; 8:45 am]
BILLING CODE 4710–10–P
DEPARTMENT OF TRANSPORTATION
Surface Transportation Board
[Docket No. FD 35413]
Lancaster & Chester Railroad, LLC—
Acquisition and Operation
Exemption—Line of Lancaster &
Chester Railway Company
Lancaster & Chester Railroad, LLC
(L&C Railroad), a noncarrier, has filed a
verified notice of exemption under 49
11 17
Jkt 223001
PO 00000
CFR 200.30–3(a)(12).
Frm 00100
Fmt 4703
Sfmt 4703
CFR 1150.31 to acquire and operate
approximately 62 miles of rail line
owned by Class III rail carrier Lancaster
& Chester Railway Company as follows:
(1) Approximately 29 miles of rail line
from Chester, S.C. (milepost 0.0) to
Lancaster, S.C. (milepost 29.0), plus
approximately 2 miles of connecting
track from milepost 5.0 in Chester
County, S.C., to the connection with
Consolidated Rail Corporation at former
Survey Station 0+06 (milepost SG–
346+2210) of the Seaboard Coast Line
Railroad Company in Chester County;
and (2) approximately 31 miles of rail
line from Kershaw, S.C. (milepost SB–
58.7) to Catawba, S.C. (milepost SB–
89.5) including, for each of the lines,
related rail property and trackage.
Because L&C Railroad’s projected
annual revenues will exceed $5 million,
L&C Railroad certified to the Board on
August 30, 2010, that it had complied
with the requirements of 49 CFR
1150.32(e) providing for notice to
employees and their labor unions on the
affected line. L&C Railroad also certified
that its projected revenues as a result of
this transaction will not exceed those
that would qualify it as a Class III
carrier.
This transaction is related to a
concurrently filed verified notice of
exemption in Docket No. FD 35414, Gulf
& Ohio Railways Holding Co., Inc., H.
Peter Claussen and Linda C. Claussen—
Continuance in Control Exemption—
Lancaster & Chester Railroad, LLC,
wherein the above parties seek to
continue in control of L&C Railroad,
upon L&C Railroad’s becoming a Class
III rail carrier.
The transaction may be consummated
on or after October 31, 2010 (the
effective date of the exemption).
If the verified notice contains false or
misleading information, the exemption
is void ab initio. Petitions to revoke the
exemption under 49 U.S.C. 10502(d)
may be filed at any time. The filing of
a petition to revoke will not
automatically stay the effectiveness of
the exemption. Petitions for stay must
be filed no later than October 22, 2010
(at least 7 days before the exemption
becomes effective).
An original and 10 copies of all
pleadings, referring to Docket No. FD
35413, must be filed with the Surface
Transportation Board, 395 E Street, SW.,
Washington, DC 20423–0001. In
addition, a copy of each pleading must
be served on Troy W. Garris, 2904
Corporate Cir., Flower Mound, TX.
75028.
Board decisions and notices are
available on our Web site at https://
www.stb.dot.gov.
Decided: October 7, 2010.
E:\FR\FM\15OCN1.SGM
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]]>Agencies
[Federal Register Volume 75, Number 199 (Friday, October 15, 2010)]
[Notices]
[Pages 63530-63532]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-25949]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-63067; File No. SR-NYSEArca-2010-78]
Self-Regulatory Organizations; NYSE Arca, Inc.; Order Granting
Approval of Proposed Rule Change Relating to Listing and Trading Shares
of Jefferies Commodity Real Return ETF
October 8, 2010.
I. Introduction
On August 17, 2010, NYSE Arca, Inc. (``NYSE Arca'' or ``Exchange'')
filed with the Securities and Exchange Commission (``Commission''),
pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to
list and trade shares (``Shares'') of Jefferies Commodity Real Return
ETF (the ``Fund''). The proposed rule change was published for comment
in the
[[Page 63531]]
Federal Register on September 3, 2010.\3\ The Commission received no
comments on the proposal. This order approves the proposed rule change.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 62768 (August 26,
2010), 75 FR 54199 (``Notice'').
---------------------------------------------------------------------------
II. Description of the Proposal
The Exchange proposes to list and trade the Shares pursuant to NYSE
Arca Equities Rule 8.200, Commentary .02, which governs the listing and
trading of Trust Issuer Receipts (``TIRs'') that invest in ``Financial
Instruments.'' The Exchange represents that the Shares satisfy the
requirements of NYSE Arca Equities Rule 8.200, Commentary .02, and
thereby qualify for listing on the Exchange.
As described in greater detail in the Notice, the Fund will invest
substantially all of its assets in exchange-traded futures in
commodities that comprise the Thomson Reuters/Jefferies CRB 3 Month
Forward Index (``Index''), or in other derivatives. The Fund
establishes long positions in futures contracts on the nineteen
physical commodities that comprise the Index (``Index Commodities'')
with the goal of tracking the changes, either positive or negative, to
the Index over time. The Managing Owner of the Fund adjusts the Fund's
portfolio from time to time to conform to periodic changes in the
identity and/or relative weighting of the Index Commodities.
The Exchange deems the Shares to be equity securities, which
subjects trading in the Shares to the Exchange's existing rules
governing the trading of equity securities, and has represented that
trading in the Shares on the Exchange will occur in accordance with
NYSE Arca Equities Rule 8.200(e). The Exchange has also represented
that it has appropriate rules to facilitate transactions in the Shares
during all trading sessions.
Additional details regarding the Shares and the Fund including,
among other things, the organization and structure of the Fund, the
dissemination and availability of information about the Fund and the
Index, trading halts, applicable trading rules, surveillance, and the
Information Bulletin can be found in the Notice.\4\
---------------------------------------------------------------------------
\4\ See supra note 3.
---------------------------------------------------------------------------
III. Discussion and Commission's Findings
After careful consideration, the Commission finds that the proposed
rule change is consistent with the requirements of the Act and the
rules and regulations thereunder applicable to a national securities
exchange.\5\ In particular, the Commission finds that the proposed rule
change is consistent with the requirements of Section 6(b)(5) of the
Act,\6\ which requires, among other things, that the Exchange's rules
be designed to promote just and equitable principles of trade, to
foster cooperation and coordination with persons engaged in
facilitating transactions in securities, to remove impediments to and
perfect the mechanism of a free and open market and a national market
system, and, in general, to protect investors and the public interest.
---------------------------------------------------------------------------
\5\ In approving this proposed rule change, the Commission notes
that it has considered the proposed rule's impact on efficiency,
competition, and capital formation. See 15 U.S.C. 78c(f).
\6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Commission notes that it has previously permitted the listing
and trading of TIRs based on commodities indexes.\7\ In addition, the
Shares will be listed and traded pursuant to Commentary .02 to NYSE
Arca Equities Rule 8.200, and the Exchange represents that the Shares
will conform to the existing initial and continued listing criteria
under this rule.
---------------------------------------------------------------------------
\7\ See Securities Exchange Act Release No. 58457 (September 3,
2008), 73 FR 52711 (September 10, 2008) (SR-NYSEArca-2008-91)
(Listing of fourteen funds of the Currency and Commodity Trust
pursuant to Rule 8.200, Commentary .02.)
---------------------------------------------------------------------------
In addition, the Commission finds that the proposal to list and
trade the Shares on the Exchange is consistent with Section
11A(a)(1)(C)(iii) of the Act,\8\ which sets forth Congress' finding
that it is in the public interest and appropriate for the protection of
investors and the maintenance of fair and orderly markets to assure the
availability to brokers, dealers and investors of information with
respect to quotations for and transactions in securities.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78k-1(a)(1)(C)(iii).
---------------------------------------------------------------------------
Quotation and last-sale information for the Shares will be
disseminated through the facilities of the Consolidated Tape
Association. The Intra-day Indicative Value (``IIV'') will be published
by the Fund's Index Calculation Agent every 15 seconds through one or
more major market data vendors and on the Fund's Managing Owner's Web
site. The Net Asset Value (``NAV'') of the Fund will be published by
the Managing Owner of the Fund, and will be disseminated to all market
participants at the same time. The Exchange has also noted that
information regarding the closing prices and settlement prices of
futures on the Index Commodities are readily available from Web sites
of the applicable futures exchanges, automated quotation systems,
published or other public sources, or online information services such
as Bloomberg or Reuters. The relevant futures exchanges also provide
delayed futures information on current and past trading sessions and
market news free of charge on their respective Web sites. Moreover, the
Fund's Web site (https://www.jamfunds.com/jcis) will also disseminate
the Fund holdings on a daily basis.
The Exchange shall make available on its Web site daily trading
volume of the Shares, closing prices of the Shares, and the
corresponding NAV. In addition, the Fund's website will provide the
following information: (1) The current net asset value per share daily
and the prior business day's NAV and the reported closing price; (2)
the mid-point of the bid-ask price in relation to the NAV as of the
time the NAV is calculated; (3) a calculation of the premium or
discount of such price against such NAV; (4) data in chart format
displaying the frequency distribution of discounts and premiums of the
Bid/Ask Price against the NAV, within appropriate ranges, for each of
the four previous calendar quarters; (5) the Fund's prospectus; and (6)
other applicable quantitative information.
The Commission further believes that the proposal to list and trade
the Shares is reasonably designed to promote fair disclosure of
information that may be necessary to price the Shares appropriately and
to prevent trading when a reasonable degree of transparency cannot be
assured. The Exchange has represented that the NAV for the Fund will be
disseminated to all market participants at the same time. If the
Exchange becomes aware that the NAV with respect to the Shares is not
being disseminated to all market participants at the same time, it will
halt trading in the Shares until such time as the NAV is available to
all market participants. Furthermore, the Exchange has represented that
it may halt trading during the day in which the interruption to the
dissemination of the IIV, the Index or the value of the underlying
futures occurs.
With respect to trading halts, the Exchange may consider all
relevant factors in exercising its discretion to halt or suspend
trading in the Shares. Trading on the Exchange in the Shares 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
underlying futures contracts; or (2) whether other unusual conditions
or circumstances detrimental to the maintenance of a fair
[[Page 63532]]
and orderly market are present. In addition, trading in Shares will be
subject to trading halts caused by extraordinary market volatility
pursuant to the Exchange's ``circuit breaker'' rule or by the halt or
suspension of trading in the underlying futures contracts.
In addition, NYSE Arca Equities Rule 8.200(e) sets forth certain
requirements for ETP Holders acting as registered Market Makers in the
Shares to facilitate surveillance.
In support of this proposal, the Exchange has made representations,
including:
(1) The Fund will meet the initial and continued listing criteria
under NYSE Arca Equities Rule 8.200, Commentary .02.
(2) The Exchange's surveillance 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.
(3) Prior to the commencement of trading, the Exchange will inform
its ETP Holders in an Information Bulletin of the special
characteristics and risks associated with trading the Shares.
Specifically, the Information Bulletin will discuss the following: (a)
The risks involved in trading the Shares during the Opening and Late
Trading Sessions when an updated IIV will not be calculated or publicly
disseminated; (b) the procedures for purchases and redemptions of
Shares in Baskets (including noting that Shares are not individually
redeemable); (c) NYSE Arca Equities Rule 9.2(a), which imposes a duty
of due diligence on its ETP Holders to learn the essential facts
relating to every customer prior to trading the Shares; (d) how
information regarding the IIV is disseminated; (e) the requirement that
ETP Holders deliver a prospectus to investors purchasing newly issued
Shares prior to or concurrently with the confirmation of a transaction;
and (f) trading information.
This approval order is based on the Exchange's representations.
For the foregoing reasons, the Commission finds that the proposed
rule change is consistent with Section 6(b)(5) of the Act \9\ and the
rules and regulations thereunder applicable to a national securities
exchange.
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\9\ 15 U.S.C. 78f(b)(5).
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IV. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\10\ that the proposed rule change (SR-NYSEArca-2010-78), be, and
it hereby is, approved.
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\10\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-25949 Filed 10-14-10; 8:45 am]
BILLING CODE 8011-01-P
