Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Accuvest Global Long Short ETF (Formerly the Mars Hill Global Relative Value ETF), 36599-36602 [2012-14849]

Download as PDF Federal Register / Vol. 77, No. 118 / Tuesday, June 19, 2012 / Notices 100 F Street NE., Washington, DC 20549–1090. SECURITIES AND EXCHANGE COMMISSION All submissions should refer to File Number SR–NYSEMKT–2012–08. 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 (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 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 the 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– NYSEMKT–2012–08 and should be submitted on or before July 10, 2012.11 For the Commission, by the Division of Trading and Markets, pursuant to delegated authority. Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2012–14904 Filed 6–18–12; 8:45 am] BILLING CODE 8011–01–P [Release No. 34–67156A; File No. SR–ICC– 2012–09] Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Schedule 502 of the ICE Clear Credit LLC Rules to Amend the Reference Entity Name for Three Credit Default Swap Contracts and the Reference Obligation International Securities Identification Number Associated With One Credit Default Swap Contract; Correction June 13, 2012. Securities and Exchange Commission. AGENCY: ACTION: Notice; correction. The Securities and Exchange Commission published a document in the Federal Register on June 13, 2012, concerning a Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Amend Schedule 502 of the ICE Clear Credit LLC Rules to Amend the Reference Entity Name for Three Credit Default Swap Contracts and the Reference Obligation International Securities Identification Number Associated with One Credit Default Swap Contract. The document contained a typographical error in one section designation. SUMMARY: FOR FURTHER INFORMATION CONTACT: Shahriar Hafizi, Division of Trading and Markets, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549, (202) 551–7226. Correction In the Federal Register of June 13, 2012 in FR Doc. 2012–35462, on page 35464, in the twenty-fifth line of the first column, correct the reference to ICE Clear Credit LLC’s Web site to https:// www.theice.com/publicdocs/ regulatory_filings/ ICEClearCredit_052912.pdf. srobinson on DSK4SPTVN1PROD with NOTICES Dated: June 13, 2012. Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2012–14858 Filed 6–18–12; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–67195; File No. SR– NYSEArca–2012–51] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Accuvest Global Long Short ETF (Formerly the Mars Hill Global Relative Value ETF) June 13, 2012. 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 May 31, 2012, NYSE Arca, Inc. (‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I and II below, which Items have been substantially prepared by the Exchange. The Exchange filed the proposal as a ‘‘non-controversial’’ proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 3 and Rule 19b–4(f)(6) thereunder,4 which renders the proposal effective upon receipt of this filing by the Commission. 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 means of achieving the investment objective, and the size of a Creation Unit (as described below) applicable to, the Accuvest Global Long Short ETF (‘‘Fund’’) (formerly known as the Mars Hill Global Relative Value ETF). 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. 1 15 U.S.C.78s(b)(1). CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A)(iii). 4 17 CFR 240.19b–4(f)(6). 2 17 11 17 CFR 200.30–3(a)(12). VerDate Mar<15>2010 16:39 Jun 18, 2012 Jkt 226001 PO 00000 Frm 00123 Fmt 4703 Sfmt 4703 36599 E:\FR\FM\19JNN1.SGM 19JNN1 36600 Federal Register / Vol. 77, No. 118 / Tuesday, June 19, 2012 / Notices 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 Statutory Basis for, the Proposed Rule Change srobinson on DSK4SPTVN1PROD with NOTICES 1. Purpose The Commission has approved listing and trading on the Exchange of shares (‘‘Shares’’) of the Mars Hill Global Relative Value ETF, a series of AdvisorShares Trust (‘‘Trust’’),5 under NYSE Arca Equities Rule 8.600, which governs the listing and trading of Managed Fund Shares. The Shares are offered by the Trust, a statutory trust organized under the laws of the State of Delaware and registered with the Commission as an open-end management investment company.6 The investment adviser to the Fund is AdvisorShares Investments, LLC (‘‘Adviser’’). On December 1, 2011, the sub-adviser to the Fund changed from Mars Hill Partners, LLC to Accuvest Global Advisors LLC (‘‘Accuvest’’ or ‘‘Sub-Adviser’’), and the name of the Fund changed to the Accuvest Global Long Short ETF. Shareholders of the Fund were notified of the change to the Sub-Adviser and the name of the Fund in an amendment to the Registration Statement on Form N–1A on December 1, 2011. The Adviser and Sub-Adviser are not affiliated with a broker-dealer. In this proposed rule change, the Exchange proposes to reflect a change in the Registration Statement to the description of the measures the SubAdviser will utilize to implement the Fund’s investment objective.7 As 5 See Securities Exchange Act Release No. 61842 (April 5, 2010), 75 FR 18554 (April 12, 2010) (SR– NYSEArca–2010–10) (‘‘Prior Order’’). See also Securities Exchange Act Release No. 61683 (March 10, 2010), 75 FR 13194 (March 18, 2010) (SR– NYSEArca–2010–10) (‘‘Prior Notice,’’ and together with the Prior Order, ‘‘Prior Release’’). 6 The Trust is registered under the Investment Company Act of 1940 (‘‘1940 Act’’) (15 U.S.C. 80a– 1). On December 1, 2011, the Trust filed with the Commission an amendment to its registration statement on Form N–1A 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– 157876 and 811–22110) (as amended, ‘‘Registration Statement’’). The description of the operation of the Trust and the Fund herein is based, in part, on the Registration Statement. In addition, the Commission has issued an order granting certain exemptive relief to the Trust under the 1940 Act. See Investment Company Act Release No. 28822 (July 20, 2009) (File No. 812–13488) (‘‘Exemptive Order’’). 7 The changes described herein were effective upon filing with the Commission of an amendment to the Trust’s Registration Statement, dated December 1, 2011. See note 6, supra. The Adviser represents that, with the exception of the increase in the size of a Creation Unit from 25,000 Shares VerDate Mar<15>2010 16:39 Jun 18, 2012 Jkt 226001 reflected in the Prior Release, the investment objective of the Fund is to provide average annual returns in excess of the total return of the MSCI World Index (‘‘Index’’), with comparable volatility and little to no correlation with the Index. The Registration Statement states that the investment objective of the Fund is to provide average annual returns in excess of the total return of the Index, deleting the words ‘‘with comparable volatility and little to no correlation with the Index.’’ The Adviser seeks to make the following changes to representations made in the Prior Release: (1) According to the Prior Release, the Sub-Adviser seeks to achieve the Fund’s investment objective by taking long positions in the Underlying ETFs that invest in what it believes to be the most relatively attractive global regions and countries within those regions, and by establishing an equivalent dollar amount of short positions in the Underlying ETFs that invest in what it believes to be the most relatively unattractive global regions and countries within those regions. The Registration Statement was amended to state that the Sub-Adviser seeks to achieve the Fund’s investment objective by taking long positions in the Underlying ETFs that invest in what it believes to be the most relatively attractive global regions and countries within those regions, and by taking short positions, by entering into short sales, in the Underlying ETFs that invest in what it believes to be the most relatively unattractive global regions and countries within those regions. Thus, the Sub-Adviser no longer would take into account the dollar equivalency of the short positions. The purpose of this change is to provide additional flexibility to the Sub-Adviser to meet the Fund’s investment objective by altering the Fund’s long positions based on the Sub-Adviser’s assessment of the relative attractiveness or unattractiveness of global regions without having to establish dollar equivalency with the Fund’s short positions, and vice versa. (2) According to the Prior Release, by maintaining a core portfolio construction of equal long and short dollar exposure, the Sub-Adviser seeks to minimize the influence of directional trends and market exposure (‘‘beta’’), and seeks to profit from the relative to 50,000 Shares or more, as described in note 8, infra, the Adviser and Sub-Adviser have managed and will continue to manage the Fund in the manner described in the Prior Release, and will not implement the changes described herein until the instant proposed rule change is operative. PO 00000 Frm 00124 Fmt 4703 Sfmt 4703 performance between long and short positions in global regions, countries, styles, or sectors. The Prior Release also stated that, from time-to-time, the SubAdviser may also add directional exposure of up to 50% net long or net short exposure on top of its core long/ short portfolio, and that, in doing so, the Sub-Adviser seeks to generate additional profits for the Fund by being net long when stock markets are rising and net short when markets are falling. In eliminating the equivalent position requirement, as described in (1) above, under this proposal the Sub-Adviser would no longer seek to minimize the influence of directional trends and beta. In addition, the representation in the preceding paragraph was revised in the Registration Statement to state that, in establishing the long and short positions referenced above, the Fund seeks to profit from the relative performance between the long and short positions in global regions, countries, styles, or sectors. From time to time, the Fund may have directional exposure to seek to profit by being net long when stock markets are rising and net short when markets are falling. The purpose of this change is to provide additional flexibility to the Sub-Adviser to meet the Fund’s investment objective by focusing on the relative performance between long and short positions in global regions, countries, styles, or sectors, rather than equal long and short dollar exposure. The Sub-Adviser also could establish added directional exposure of any amount based on the Sub-Adviser’s market assessment, and, without the 50% net long or net short exposure limitation, in order to maximize potential returns, in furtherance of the Fund’s investment objective. The Adviser represents that, while the Fund’s investment objective is being slightly revised, the Adviser believes the investment objective is not changing in a significant way because (1) the Fund will continue to aim to achieve average annual returns in excess of the total return of the Index; (2) the Fund will continue to take long and short positions in the securities in which it invests, but the revised representations will provide additional flexibility to the Sub-Adviser to meet the Fund’s stated investment objective by focusing on the relative performance between long and short positions in global regions, countries, styles, or sectors, rather than equal long and short dollar exposure or limited added directional exposure; and (3) the Fund will continue to assess the most relatively attractive or unattractive global regions and countries within those regions, respectively, but the E:\FR\FM\19JNN1.SGM 19JNN1 Federal Register / Vol. 77, No. 118 / Tuesday, June 19, 2012 / Notices revised representations will provide a better opportunity for the Fund to maximize potential returns for investors based primarily on the Adviser’s and Sub-Adviser’s assessment of such relative attractiveness or unattractiveness. The Adviser believes the revised representations will permit the Adviser and Sub-Adviser, through such additional flexibility, to better achieve the Fund’s stated investment objective to achieve average annual returns in excess of the total return of the Index.8 Except for the changes noted above, all other representations made in the Prior Release remain unchanged, including representations regarding implementation of ‘‘fire walls’’ by any additional Fund advisers and subadvisers affiliated with a broker-dealer, and Underlying ETFs in which the Fund invests. The Fund will continue to comply with all initial and continued listing requirements under NYSE Arca Equities Rule 8.600. All terms referenced but not defined herein are defined in the Prior Release. 2. Statutory Basis srobinson on DSK4SPTVN1PROD with NOTICES The basis under the Act 9 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. 8 The Exchange notes that the Prior Notice stated that the Trust will issue and sell Shares of the Fund only in Creation Units of 25,000 Shares on a continuous basis at their net asset value next determined after receipt, on any Business Day (as defined in the Registration Statement). The size of a Creation Unit was increased to 50,000 Shares from 25,000 Shares prior to the Fund’s initial offering and commencement of listing and trading on the Exchange, and the change was reflected in an amendment to the Trust’s registration statement on Form N–1A under the 1933 Act and 1940 Act, dated March 16, 2010 (File Nos. 333–157876 and 811– 22110), which reflects the 50,000 Share Creation Unit size. The Adviser represents that the 50,000 Share Creation Unit size is consistent with the Fund’s Exemptive Order, which does not specifically limit the Fund’s Creation Unit size. The Exchange notes that the Commission has approved the listing and trading of other issues of Managed Fund Shares that have applied a minimum Creation Unit size of 50,000 shares or greater. See, e.g., Securities Exchange Act Release Nos. 65458 (September 30, 2011), 76 FR 62112 (October 6, 2011) (SR–NYSEArca–2011–54) (order approving listing and trading of WisdomTree Dreyfus Australia and New Zealand Debt Fund); 66112 (January 5, 2012), 77 FR 1761 (January 11, 2012) (SR–NYSEArca–2011–80) (order approving listing and trading of Rockledge SectorSAM ETF). 9 15 U.S.C. 78a. 10 15 U.S.C. 78f(b)(5). VerDate Mar<15>2010 16:39 Jun 18, 2012 Jkt 226001 The Exchange believes that the proposed rule change is designed to prevent fraudulent and manipulative acts and practices in that the Shares will continue to be listed and traded on the Exchange pursuant to the initial and continued listing criteria in NYSE Arca Equities Rule 8.600. The Index, which is referenced in the Fund’s investment objective, is a global, broad-based index of large capitalization companies. The Fund invests in Underlying ETFs that are primarily index-based ETFs that hold substantially all of their assets in securities representing a specific index. The Underlying ETFs in which the Fund invests will be traded on a U.S. national securities exchange. Except for Underlying ETFs that may hold nonU.S. issues, the Fund will not otherwise invest in non-U.S.-registered issues. The Fund will continue to comply with all initial and continued listing requirements under NYSE Arca Equities Rule 8.600. 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 Adviser represents that, while the investment objective of the Fund is being slightly revised, it is not changing in a significant way. The Adviser represents that the purpose of the change relating to establishing long and short positions without reference to a dollar equivalency requirement is to provide additional flexibility to the Sub-Adviser to meet the Fund’s investment objective by focusing on the relative performance between long and short positions in global regions, countries, styles, or sectors, rather than equal long and short dollar exposure or limited added directional exposure. 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 the Fund invests in Underlying ETFs that are primarily index-based ETFs that hold substantially all of their assets in securities representing a specific index. The Underlying ETFs in which the Fund invests are traded on a U.S. national securities exchange. The additional flexibility afforded to the Adviser and Sub-Adviser under the proposed change will permit the Adviser and Sub-Adviser to better achieve provide [sic] the Fund’s objective to achieve average annual returns in excess of the total return of the MSCI World Index. Such added flexibility also will provide a better opportunity for the Fund to maximize potential return for investors based primarily on the Adviser’s and SubAdviser’s assessment of the most PO 00000 Frm 00125 Fmt 4703 Sfmt 4703 36601 relatively attractive or unattractive global regions and countries within those regions, respectively. Except for the changes noted above, all other representations made in the Prior Release remain unchanged. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. 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 foregoing proposed rule 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, provided that the self-regulatory organization has given the Commission written notice of its intent to file 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, 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 A proposed rule change filed under Rule 19b–4(f)(6) normally does not become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b–4(f)(6)(iii),13 the Commission may designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has asked the Commission to waive the 30-day operative delay so that the proposal may become operative immediately upon filing. The Commission notes that, under the proposal, the Fund will continue to: (1) Aim to achieve average annual returns in excess of the total return of the Index; 11 15 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). The Commission notes that the Exchange has satisfied the five-day prefiling notice requirement. 13 17 CFR 240.19b–4(f)(6)(iii). 12 17 E:\FR\FM\19JNN1.SGM 19JNN1 36602 Federal Register / Vol. 77, No. 118 / Tuesday, June 19, 2012 / Notices srobinson on DSK4SPTVN1PROD with NOTICES (2) take long and short positions in the securities in which it invests, but with additional flexibility to meet its stated investment objective by focusing on the relative performance between long and short positions in global regions, countries, styles, or sectors, rather than equal long and short dollar exposure or limited added directional exposure; and (3) assess the most relatively attractive or unattractive global regions and countries within those regions, respectively, but with a better opportunity to maximize potential returns for investors based primarily on the Adviser’s and Sub-Adviser’s assessment of such relative attractiveness or unattractiveness. The Commission further notes that, except for the changes noted herein, all other representations made in the Prior Release remain unchanged, including representations regarding implementation of ‘‘fire walls’’ by any additional Fund advisers and subadvisers affiliated with a broker-dealer and Underlying ETFs in which the Fund invests. In addition, the Fund will continue to comply with all initial and continued listing requirements under NYSE Arca Equities Rule 8.600. For the foregoing reasons, the Commission believes that the proposed change does not raise novel or unique regulatory issues that should delay the implementation of the Fund’s proposed changes. In addition, the Commission believes it is consistent with the protection of investors and the public interest to waive the 30-day operative delay, as a waiver would allow the Advisor and Sub-Advisor the flexibility to invest in ways they believe will result in greater returns for investors, with the goal of achieving average annual returns in excess of the total return of the Index, without undue delay.14 Accordingly, the Commission waives the 30-day operative delay requirement. 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. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule 16:39 Jun 18, 2012 Jkt 226001 DEPARTMENT OF TRANSPORTATION Electronic Comments • Use the Commission’s Internet comment form (https://www.sec.gov/ rules/sro.shtml); or • Send an email to rulecomments@sec.gov. Please include File Number SR–NYSEArca–2012–51 on the subject line. Public Notice for Waiver for Aeronautical Land-Use Assurance at Saline County Regional Airport, Benton, AR Paper Comments • Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–NYSEArca–2012–51. 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 (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 10:00 a.m. and 3:00 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–2012–51 and should be submitted on or before July 10, 2012. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.15 Kevin M. O’Neill, Deputy Secretary. 14 For purposes only of waiving the 30-day operative delay, the Commission has considered the proposed rule change’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). VerDate Mar<15>2010 change is consistent with the Act. Comments may be submitted by any of the following methods: [FR Doc. 2012–14849 Filed 6–18–12; 8:45 am] BILLING CODE 8011–01–P 15 17 PO 00000 CFR 200.30–3(a)(12). Frm 00126 Fmt 4703 Sfmt 4703 Federal Aviation Administration Federal Aviation Administration, DOT. ACTION: Notice of Intent for Waiver of Aeronautical Land-Use. AGENCY: The Federal Aviation Administration (FAA) is considering a proposal to change a portion of the airport from aeronautical use to nonaeronautical use and to authorize the conversion of the airport property. The proposal consists of one parcel of land containing a total of approximately 3.19 acres located on the west side of the airport at the corner of Hazel Street and 4th Street. The parcel was originally acquired as part of a donation to the County of Saline in 1999. The land comprising this parcel is outside the forecasted need for aviation development and, thus, is no longer needed for indirect or direct aeronautical use. The airport wishes to develop this land for compatible commercial, nonaeronautical use. The income from the conversion of this parcel will benefit the aviation community by reinvestment in the airport. Approval does not constitute a commitment by the FAA to financially assist in the conversion of the subject airport property nor a determination of eligibility for grant-in-aid funding from the FAA. The disposition of proceeds from the conversion of the airport property will be in accordance with FAA’s Policy and Procedures Concerning the Use of Airport Revenue, published in the Federal Register on February 16, 1999. In accordance with Section 47107(h) of Title 49, United States Code, this notice is required to be published in the Federal Register 30 days before modifying the land-use assurance that requires the property to be used for an aeronautical purpose. DATES: Comments must be received on or before July 19, 2012. ADDRESSES: Send comments on this document to Mr. Edward N. Agnew, Federal Aviation Administration, Manager, Arkansas/Oklahoma Airports Development Office, 2601 Meacham Boulevard, Fort Worth, TX 76137. FOR FURTHER INFORMATION CONTACT: Mr. Mark Westbrook, Airport Chairman, Saline County Regional Airport Commission, P.O. Box 1628, Benton, AR 72018, telephone (501) 672–9809, or Mr. SUMMARY: E:\FR\FM\19JNN1.SGM 19JNN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 77, Number 118 (Tuesday, June 19, 2012)]
[Notices]
[Pages 36599-36602]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-14849]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-67195; File No. SR-NYSEArca-2012-51]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Relating to the
Accuvest Global Long Short ETF (Formerly the Mars Hill Global Relative
Value ETF)

June 13, 2012.
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 May 31, 2012, NYSE Arca, Inc. (``Exchange'' or ``NYSE Arca'')
filed with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I and II below, which Items
have been substantially prepared by the Exchange. The Exchange filed
the proposal as a ``non-controversial'' proposed rule change pursuant
to Section 19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-4(f)(6)
thereunder,\4\ which renders the proposal effective upon receipt of
this filing by the Commission. 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\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(iii).
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

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 means of achieving
the investment objective, and the size of a Creation Unit (as described
below) applicable to, the Accuvest Global Long Short ETF (``Fund'')
(formerly known as the Mars Hill Global Relative Value ETF). 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.

[[Page 36600]]

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
Statutory Basis for, the Proposed Rule Change

1. Purpose
The Commission has approved listing and trading on the Exchange of
shares (``Shares'') of the Mars Hill Global Relative Value ETF, a
series of AdvisorShares Trust (``Trust''),\5\ under NYSE Arca Equities
Rule 8.600, which governs the listing and trading of Managed Fund
Shares. The Shares are offered by the Trust, a statutory trust
organized under the laws of the State of Delaware and registered with
the Commission as an open-end management investment company.\6\
---------------------------------------------------------------------------

\5\ See Securities Exchange Act Release No. 61842 (April 5,
2010), 75 FR 18554 (April 12, 2010) (SR-NYSEArca-2010-10) (``Prior
Order''). See also Securities Exchange Act Release No. 61683 (March
10, 2010), 75 FR 13194 (March 18, 2010) (SR-NYSEArca-2010-10)
(``Prior Notice,'' and together with the Prior Order, ``Prior
Release'').
\6\ The Trust is registered under the Investment Company Act of
1940 (``1940 Act'') (15 U.S.C. 80a-1). On December 1, 2011, the
Trust filed with the Commission an amendment to its registration
statement on Form N-1A under the Securities Act of 1933 (15 U.S.C.
77a) (``1933 Act'') and under the 1940 Act relating to the Fund
(File Nos. 333-157876 and 811-22110) (as amended, ``Registration
Statement''). The description of the operation of the Trust and the
Fund herein is based, in part, on the Registration Statement. In
addition, the Commission has issued an order granting certain
exemptive relief to the Trust under the 1940 Act. See Investment
Company Act Release No. 28822 (July 20, 2009) (File No. 812-13488)
(``Exemptive Order'').
---------------------------------------------------------------------------

The investment adviser to the Fund is AdvisorShares Investments,
LLC (``Adviser''). On December 1, 2011, the sub-adviser to the Fund
changed from Mars Hill Partners, LLC to Accuvest Global Advisors LLC
(``Accuvest'' or ``Sub-Adviser''), and the name of the Fund changed to
the Accuvest Global Long Short ETF. Shareholders of the Fund were
notified of the change to the Sub-Adviser and the name of the Fund in
an amendment to the Registration Statement on Form N-1A on December 1,
2011. The Adviser and Sub-Adviser are not affiliated with a broker-
dealer.
In this proposed rule change, the Exchange proposes to reflect a
change in the Registration Statement to the description of the measures
the Sub-Adviser will utilize to implement the Fund's investment
objective.\7\ As reflected in the Prior Release, the investment
objective of the Fund is to provide average annual returns in excess of
the total return of the MSCI World Index (``Index''), with comparable
volatility and little to no correlation with the Index. The
Registration Statement states that the investment objective of the Fund
is to provide average annual returns in excess of the total return of
the Index, deleting the words ``with comparable volatility and little
to no correlation with the Index.''
---------------------------------------------------------------------------

\7\ The changes described herein were effective upon filing with
the Commission of an amendment to the Trust's Registration
Statement, dated December 1, 2011. See note 6, supra. The Adviser
represents that, with the exception of the increase in the size of a
Creation Unit from 25,000 Shares to 50,000 Shares or more, as
described in note 8, infra, the Adviser and Sub-Adviser have managed
and will continue to manage the Fund in the manner described in the
Prior Release, and will not implement the changes described herein
until the instant proposed rule change is operative.
---------------------------------------------------------------------------

The Adviser seeks to make the following changes to representations
made in the Prior Release:
(1) According to the Prior Release, the Sub-Adviser seeks to
achieve the Fund's investment objective by taking long positions in the
Underlying ETFs that invest in what it believes to be the most
relatively attractive global regions and countries within those
regions, and by establishing an equivalent dollar amount of short
positions in the Underlying ETFs that invest in what it believes to be
the most relatively unattractive global regions and countries within
those regions. The Registration Statement was amended to state that the
Sub-Adviser seeks to achieve the Fund's investment objective by taking
long positions in the Underlying ETFs that invest in what it believes
to be the most relatively attractive global regions and countries
within those regions, and by taking short positions, by entering into
short sales, in the Underlying ETFs that invest in what it believes to
be the most relatively unattractive global regions and countries within
those regions. Thus, the Sub-Adviser no longer would take into account
the dollar equivalency of the short positions. The purpose of this
change is to provide additional flexibility to the Sub-Adviser to meet
the Fund's investment objective by altering the Fund's long positions
based on the Sub-Adviser's assessment of the relative attractiveness or
unattractiveness of global regions without having to establish dollar
equivalency with the Fund's short positions, and vice versa.
(2) According to the Prior Release, by maintaining a core portfolio
construction of equal long and short dollar exposure, the Sub-Adviser
seeks to minimize the influence of directional trends and market
exposure (``beta''), and seeks to profit from the relative performance
between long and short positions in global regions, countries, styles,
or sectors. The Prior Release also stated that, from time-to-time, the
Sub-Adviser may also add directional exposure of up to 50% net long or
net short exposure on top of its core long/short portfolio, and that,
in doing so, the Sub-Adviser seeks to generate additional profits for
the Fund by being net long when stock markets are rising and net short
when markets are falling.
In eliminating the equivalent position requirement, as described in
(1) above, under this proposal the Sub-Adviser would no longer seek to
minimize the influence of directional trends and beta. In addition, the
representation in the preceding paragraph was revised in the
Registration Statement to state that, in establishing the long and
short positions referenced above, the Fund seeks to profit from the
relative performance between the long and short positions in global
regions, countries, styles, or sectors. From time to time, the Fund may
have directional exposure to seek to profit by being net long when
stock markets are rising and net short when markets are falling. The
purpose of this change is to provide additional flexibility to the Sub-
Adviser to meet the Fund's investment objective by focusing on the
relative performance between long and short positions in global
regions, countries, styles, or sectors, rather than equal long and
short dollar exposure. The Sub-Adviser also could establish added
directional exposure of any amount based on the Sub-Adviser's market
assessment, and, without the 50% net long or net short exposure
limitation, in order to maximize potential returns, in furtherance of
the Fund's investment objective.
The Adviser represents that, while the Fund's investment objective
is being slightly revised, the Adviser believes the investment
objective is not changing in a significant way because (1) the Fund
will continue to aim to achieve average annual returns in excess of the
total return of the Index; (2) the Fund will continue to take long and
short positions in the securities in which it invests, but the revised
representations will provide additional flexibility to the Sub-Adviser
to meet the Fund's stated investment objective by focusing on the
relative performance between long and short positions in global
regions, countries, styles, or sectors, rather than equal long and
short dollar exposure or limited added directional exposure; and (3)
the Fund will continue to assess the most relatively attractive or
unattractive global regions and countries within those regions,
respectively, but the

[[Page 36601]]

revised representations will provide a better opportunity for the Fund
to maximize potential returns for investors based primarily on the
Adviser's and Sub-Adviser's assessment of such relative attractiveness
or unattractiveness. The Adviser believes the revised representations
will permit the Adviser and Sub-Adviser, through such additional
flexibility, to better achieve the Fund's stated investment objective
to achieve average annual returns in excess of the total return of the
Index.\8\
---------------------------------------------------------------------------

\8\ The Exchange notes that the Prior Notice stated that the
Trust will issue and sell Shares of the Fund only in Creation Units
of 25,000 Shares on a continuous basis at their net asset value next
determined after receipt, on any Business Day (as defined in the
Registration Statement). The size of a Creation Unit was increased
to 50,000 Shares from 25,000 Shares prior to the Fund's initial
offering and commencement of listing and trading on the Exchange,
and the change was reflected in an amendment to the Trust's
registration statement on Form N-1A under the 1933 Act and 1940 Act,
dated March 16, 2010 (File Nos. 333-157876 and 811-22110), which
reflects the 50,000 Share Creation Unit size. The Adviser represents
that the 50,000 Share Creation Unit size is consistent with the
Fund's Exemptive Order, which does not specifically limit the Fund's
Creation Unit size. The Exchange notes that the Commission has
approved the listing and trading of other issues of Managed Fund
Shares that have applied a minimum Creation Unit size of 50,000
shares or greater. See, e.g., Securities Exchange Act Release Nos.
65458 (September 30, 2011), 76 FR 62112 (October 6, 2011) (SR-
NYSEArca-2011-54) (order approving listing and trading of WisdomTree
Dreyfus Australia and New Zealand Debt Fund); 66112 (January 5,
2012), 77 FR 1761 (January 11, 2012) (SR-NYSEArca-2011-80) (order
approving listing and trading of Rockledge SectorSAM ETF).
---------------------------------------------------------------------------

Except for the changes noted above, all other representations made
in the Prior Release remain unchanged, including representations
regarding implementation of ``fire walls'' by any additional Fund
advisers and sub-advisers affiliated with a broker-dealer, and
Underlying ETFs in which the Fund invests. The Fund will continue to
comply with all initial and continued listing requirements under NYSE
Arca Equities Rule 8.600. All terms referenced but not defined herein
are defined in the Prior Release.
2. Statutory Basis
The basis under the Act \9\ 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.
---------------------------------------------------------------------------

\9\ 15 U.S.C. 78a.
\10\ 15 U.S.C. 78f(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 continue to be listed and traded on the Exchange pursuant
to the initial and continued listing criteria in NYSE Arca Equities
Rule 8.600. The Index, which is referenced in the Fund's investment
objective, is a global, broad-based index of large capitalization
companies. The Fund invests in Underlying ETFs that are primarily
index-based ETFs that hold substantially all of their assets in
securities representing a specific index. The Underlying ETFs in which
the Fund invests will be traded on a U.S. national securities exchange.
Except for Underlying ETFs that may hold non-U.S. issues, the Fund will
not otherwise invest in non-U.S.-registered issues. The Fund will
continue to comply with all initial and continued listing requirements
under NYSE Arca Equities Rule 8.600.
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 Adviser represents that, while the investment objective of the
Fund is being slightly revised, it is not changing in a significant
way. The Adviser represents that the purpose of the change relating to
establishing long and short positions without reference to a dollar
equivalency requirement is to provide additional flexibility to the
Sub-Adviser to meet the Fund's investment objective by focusing on the
relative performance between long and short positions in global
regions, countries, styles, or sectors, rather than equal long and
short dollar exposure or limited added directional exposure.
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 the Fund invests in Underlying ETFs that are
primarily index-based ETFs that hold substantially all of their assets
in securities representing a specific index. The Underlying ETFs in
which the Fund invests are traded on a U.S. national securities
exchange. The additional flexibility afforded to the Adviser and Sub-
Adviser under the proposed change will permit the Adviser and Sub-
Adviser to better achieve provide [sic] the Fund's objective to achieve
average annual returns in excess of the total return of the MSCI World
Index. Such added flexibility also will provide a better opportunity
for the Fund to maximize potential return for investors based primarily
on the Adviser's and Sub-Adviser's assessment of the most relatively
attractive or unattractive global regions and countries within those
regions, respectively. Except for the changes noted above, all other
representations made in the Prior Release remain unchanged.

B. Self-Regulatory Organization's Statement on Burden on Competition

The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.

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 foregoing proposed rule 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, provided that the self-regulatory
organization has given the Commission written notice of its intent to
file 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, 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). The Commission notes that the
Exchange has satisfied the five-day pre-filing notice requirement.
---------------------------------------------------------------------------

A proposed rule change filed under Rule 19b-4(f)(6) normally does
not become operative prior to 30 days after the date of the filing.
However, pursuant to Rule 19b-4(f)(6)(iii),\13\ the Commission may
designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposal
may become operative immediately upon filing.
---------------------------------------------------------------------------

\13\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------

The Commission notes that, under the proposal, the Fund will
continue to: (1) Aim to achieve average annual returns in excess of the
total return of the Index;

[[Page 36602]]

(2) take long and short positions in the securities in which it
invests, but with additional flexibility to meet its stated investment
objective by focusing on the relative performance between long and
short positions in global regions, countries, styles, or sectors,
rather than equal long and short dollar exposure or limited added
directional exposure; and (3) assess the most relatively attractive or
unattractive global regions and countries within those regions,
respectively, but with a better opportunity to maximize potential
returns for investors based primarily on the Adviser's and Sub-
Adviser's assessment of such relative attractiveness or
unattractiveness. The Commission further notes that, except for the
changes noted herein, all other representations made in the Prior
Release remain unchanged, including representations regarding
implementation of ``fire walls'' by any additional Fund advisers and
sub-advisers affiliated with a broker-dealer and Underlying ETFs in
which the Fund invests. In addition, the Fund will continue to comply
with all initial and continued listing requirements under NYSE Arca
Equities Rule 8.600.
For the foregoing reasons, the Commission believes that the
proposed change does not raise novel or unique regulatory issues that
should delay the implementation of the Fund's proposed changes. In
addition, the Commission believes it is consistent with the protection
of investors and the public interest to waive the 30-day operative
delay, as a waiver would allow the Advisor and Sub-Advisor the
flexibility to invest in ways they believe will result in greater
returns for investors, with the goal of achieving average annual
returns in excess of the total return of the Index, without undue
delay.\14\ Accordingly, the Commission waives the 30-day operative
delay requirement.
---------------------------------------------------------------------------

\14\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule change's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------

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.

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-2012-51 on the subject line.

Paper Comments

Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.

All submissions should refer to File Number SR-NYSEArca-2012-51. 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 (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 10:00 a.m.
and 3:00 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-2012-51 and should be submitted on or before
July 10, 2012.

For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
---------------------------------------------------------------------------

\15\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-14849 Filed 6-18-12; 8:45 am]
BILLING CODE 8011-01-P

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.