Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing of Proposed Rule Change, as Modified by Amendment No. 1 Thereto, To List and Trade Shares of iShares Dow Jones-UBS Roll Select Commodity Index Trust Pursuant to NYSE Arca Equities Rule 8.200, 29411-29420 [2013-11897]

Download as PDF Federal Register / Vol. 78, No. 97 / Monday, May 20, 2013 / Notices The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant parts of such statements. SECURITIES AND EXCHANGE COMMISSION [Release No. 34–69573; File No. SR– NYSEArca–2013–48] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing of Proposed Rule Change, as Modified by Amendment No. 1 Thereto, To List and Trade Shares of iShares Dow JonesUBS Roll Select Commodity Index Trust Pursuant to NYSE Arca Equities Rule 8.200 May 14, 2013. 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 May 1, 2013, 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, II, and III below, which Items have been prepared by the Exchange. On May 3, 2013, the Exchange filed Amendment No. 1 to the proposed rule change.4 The Commission is publishing this notice to solicit comments on the proposed rule change, as modified by Amendment No. 1 thereto, from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to list and trade shares of iShares Dow Jones-UBS Roll Select Commodity Index Trust (the ‘‘Trust’’) under NYSE Arca Equities Rule 8.200. 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 mstockstill on DSK4VPTVN1PROD with NOTICES 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). U.S.C. 78a. 3 17 CFR 240.19b–4. 4 In Amendment No. 1, the Exchange made a technical correction and clarified that UBS Securities has implemented a fire wall with respect to its personnel regarding access to information concerning, among other things, the calculation of the values of the Index, DJ–UBS CI, and DJ–UBS Roll Select CI (as such terms are defined below). 2 15 VerDate Mar<15>2010 19:09 May 17, 2013 Jkt 229001 A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose NYSE Arca Equities Rule 8.200, Commentary .02 permits the trading of Trust Issued Receipts (‘‘TIRs’’) either by listing or pursuant to unlisted trading privileges (‘‘UTP’’).5 The Exchange proposes to list and trade the shares (the ‘‘Shares’’) of the Trust pursuant to NYSE Arca Equities Rule 8.200. The Exchange notes that the U.S. Securities and Exchange Commission (‘‘Commission’’) has previously approved the listing and trading of other issues of TIRs on the American Stock Exchange LLC 6 and listing on NYSE Arca.7 In addition, the Commission has approved other exchange-traded fundlike products linked to the performance of underlying commodities.8 The Shares represent units of beneficial interests in the Trust, as described in the Registration Statement.9 The Trust is a Delaware statutory trust. The sponsor of the Trust is iShares © Delaware Trust Sponsor LLC (the ‘‘Sponsor’’), a Delaware limited liability company. The Trust is operated by the Sponsor, an indirect subsidiary of BlackRock, Inc. The Sponsor is a commodity pool operator registered with the Commodity Futures Trading 5 Commentary .02 to NYSE Arca Equities Rule 8.200 applies to TIRs that invest in ‘‘Financial Instruments.’’ The term ‘‘Financial Instruments,’’ as defined in Commentary .02(b)(4) to NYSE Arca Equities Rule 8.200, means any combination of investments, including cash; securities; options on securities and indices; futures contracts; options on futures contracts; forward contracts; equity caps, collars and floors; and swap agreements. 6 See, e.g., Securities Exchange Act Release No. 58161 (July 15, 2008), 73 FR 42380 (July 21, 2008) (SR–Amex–2008–39) (order approving amendments to Amex Rule 1202, Commentary .07 and listing on Amex of 14 funds of the Commodities and Currency Trust). 7 See, e.g., Securities Exchange Act Release No. 58457 (September 3, 2008), 73 FR 52711 (September 10, 2008) (SR–NYSEArca–2008–91) (order approving listing on NYSE Arca of 14 funds of the Commodities and Currency Trust). 8 See, e.g., Securities Exchange Act Release No. 56932 (December 7, 2007), 72 FR 71178 (December 14, 2007) (SR–NYSEArca–2007–112) (order granting accelerated approval to list iShares S&P GSCI Commodity-Indexed Trust). 9 See the pre-effective amendment to the registration statement on Form S–1 for the Trust, dated February 8, 2013 (File No. 333–178376) relating to the Shares (the ‘‘Registration Statement’’). The discussion herein relating to the Trust and the Shares is based, in part, on the Registration Statement. Terms used but not defined herein are used as defined in the Registration Statement. PO 00000 Frm 00094 Fmt 4703 Sfmt 4703 29411 Commission (‘‘CFTC’’) and a member of the National Futures Association (‘‘NFA’’). BlackRock Asset Management International Inc., a Delaware corporation and an indirect subsidiary of BlackRock, Inc., is the sole member and manager of the Sponsor. BlackRock Institutional Trust Company, N.A., a national banking association, an indirect subsidiary of BlackRock, Inc., and an affiliate of the Sponsor, is the trustee of the Trust (the ‘‘Trustee’’). BlackRock Fund Advisors (the ‘‘Adviser’’),10 a California corporation, an indirect subsidiary of BlackRock, Inc., and an affiliate of the Sponsor, serves as the commodity trading adviser of the Trust, is registered as a commodity trading adviser with the CFTC and is a member of the NFA.11 State Street Bank and Trust Company, a trust company organized under the laws of Massachusetts, is the administrator (‘‘Administrator’’) of the Trust. According to the Registration Statement, the investment objective of the Trust will be to seek investment results that correspond generally, but are not necessarily identical, to the performance of the Dow Jones-UBS Roll Select Commodity Index Total Return (the ‘‘Index’’), which reflects the returns on a fully collateralized investment in the Dow Jones-UBS Roll Select Commodity Index (‘‘DJ–UBS Roll Select CI’’), before the payment of expenses and liabilities of the Trust. The DJ–UBS Roll Select CI is calculated based on the same commodities, though not always the same futures contracts, that are included in the Dow Jones-UBS Commodity Index (the ‘‘DJ–UBS CI’’). The DJ–UBS CI is a liquidity- and production-weighted index of the prices of a diversified group of futures contracts on physical commodities. The DJ–UBS CI forms the base commodities index from which the DJ–UBS Roll Select CI and the Index are derived. According to the Registration Statement, the assets of the Trust will 10 The Adviser is not a broker-dealer but is affiliated with a broker-dealer and has implemented a firewall with respect to such broker-dealer affiliate as well as procedures designed to prevent the use and dissemination of material non-public information regarding the assets of the Trust. 11 According to the Sponsor, the Sponsor will be responsible for the overall management of the Trust and the Trustee will be responsible for the day-today administration of the Trust. The Adviser will act as the commodity trading advisor for the Trust with discretionary authority to make determinations with respect to the Trust’s assets, but will not engage in any activities designed to obtain a profit from, or ameliorate losses caused by, changes to the level of the underlying index. The Sponsor represents that it will implement and maintain procedures designed to prevent the use and dissemination of material non-public information regarding the assets of the Trust. E:\FR\FM\20MYN1.SGM 20MYN1 29412 Federal Register / Vol. 78, No. 97 / Monday, May 20, 2013 / Notices mstockstill on DSK4VPTVN1PROD with NOTICES consist of long positions in Futures Exchange 12-traded index futures contracts of various expirations (‘‘Index Futures’’) 13 on the DJ–UBS Roll Select CI, together with cash, U.S. Treasury securities or other short-term securities and similar securities that are eligible as margin deposits for those Index Futures positions (‘‘Collateral Assets’’).14 The Trust is expected to roll out of existing positions and establish new positions in Index Futures on an ongoing basis.15 According to the Registration Statement, in order to collateralize its Index Futures positions and to reflect the U.S. Treasury component of the Index, the Trust will hold Collateral Assets, from which it will post margin to its clearing futures commission merchant (the ‘‘Clearing FCM’’), in an amount equal to the margin required by the relevant Futures Exchange, and transfer to its Clearing FCM any additional amounts that may be separately required by the Clearing FCM.16 Any Collateral Assets not required to be posted as margin with the Clearing FCM will be held in the Trust’s accounts established at its Administrator. According to the Registration Statement, the Trust will be a passive investor in Index Futures and the Collateral Assets held to satisfy applicable margin requirements on those Index Futures positions. At any time when Index Futures of more than one expiration date are listed on the 12 As used herein, ‘‘Futures Exchange’’ means the Chicago Mercantile Exchange (‘‘CME’’) or one of the CME Group Inc.’s other designated contract markets, or any additional or successor designated contract markets through which the Trust trades Index Futures (as defined herein). The designated contract markets of the CME Group Inc. are the CME, Chicago Board of Trade (‘‘CBOT’’), New York Mercantile Exchange Inc. (‘‘NYMEX’’) and Commodity Exchange, Inc. (‘‘COMEX’’). 13 The Trust’s Index Futures will be subject to the rules of the relevant Futures Exchange, which will initially be CME. The Index Futures will initially trade on GLOBEX, the CME’s electronic trading system, and are not expected to trade through open outcry on the floor of the CME. 14 The Sponsor represents that the Trust will invest in Index Futures and Collateral Assets, in a manner consistent with the Trust’s investment objective and not to achieve additional leverage. 15 The Index Futures initially held by the Trust will have quarterly expirations and be listed for trading by the CME. Subsequent Index Futures held by the Trust may have longer or shorter expirations, different terms, and may be listed on other Futures Exchanges. 16 When establishing positions in Index Futures, the Trust will be required to deposit initial margin with a value of approximately 3% to 10% of the value of each Index Futures position at the time it is established. These margin requirements are subject to change from time to time by the Exchange or the Clearing FCM. On a daily basis, the Trust will be obligated to pay, or entitled to receive, variation margin in an amount equal to the change in the daily settlement level of its Index Futures positions. VerDate Mar<15>2010 19:09 May 17, 2013 Jkt 229001 Futures Exchange, the Sponsor will determine, pursuant to the terms of the trust agreement, which Index Futures of a given expiration will be transferred in connection with either the creation or redemption of Shares. The Adviser will not engage in any activities designed to obtain a profit from, or to ameliorate losses caused by, changes in the level of the Index or the DJ–UBS Roll Select CI or the value of the Collateral Assets. According to the Registration Statement, the profit or loss on the Trust’s Index Futures positions should correlate with increases and decreases in the value of the DJ–UBS Roll Select CI, although this correlation is not expected to be exact. The return on the Index Futures, together with interest on the Collateral Assets, is expected to result in a total return that corresponds generally, but is not identical, to the Index. The Index, DJ–UBS CI and DJ–UBS Roll Select CI According to the Registration Statement, the Index reflects the value of the DJ–UBS Roll Select CI together with the returns on specified U.S. Treasury securities that are deemed to have been held to collateralize a hypothetical long position in the futures contracts comprising the DJ–UBS Roll Select CI. According to the Registration Statement, the DJ–UBS Roll Select CI is calculated based on the same commodities, though not always the same futures contracts, that are included in the DJ–UBS CI, which is a liquidityand production-weighted index of the prices of a diversified group of futures contracts on physical commodities. The DJ–UBS Roll Select CI seeks to minimize the effect of contango and maximize the effect of backwardation by selecting replacement futures contracts that exhibit the most backwardation or least contango among those eligible futures contracts with delivery months of up to 273 calendar days until expiration.17 According to the Registration Statement, the DJ–UBS Roll Select CI incorporates the economic effect of ‘‘rolling’’ the futures contracts included in the applicable index and the DJ–UBS CI reflects the economic effect of ‘‘rolling’’ futures contracts into frontmonth futures contracts. ‘‘Rolling’’ a futures contract means closing out a 17 Markets for futures contracts can exhibit ‘‘backwardation,’’ which means that futures contracts with distant delivery months are priced lower than those with nearer delivery months, or can exhibit ‘‘contango,’’ which means that futures contracts with distant delivery months are priced higher than those with nearer delivery months. PO 00000 Frm 00095 Fmt 4703 Sfmt 4703 position in an expiring futures contract and establishing an equivalent position in a new futures contract on the same commodity. According to the Registration Statement, the DJ–UBS Roll Select CI differs from the DJ–UBS CI in that it does not roll into the futures contract with the nearest designated delivery month. Rather, the DJ–UBS Roll Select CI rolls into those eligible futures contracts with delivery months of up to 273 calendar days until expiration that exhibit the most backwardation or that exhibit the least contango. The DJ–UBS Roll Select CI, the DJ– UBS CI and the Index are administered, calculated and published by UBS Securities LLC (‘‘UBS Securities’’) and DJI Opco, LLC, a wholly-owned subsidiary of S&P Dow Jones Indices LLC (‘‘S&P Dow Jones Indices’’ and, together with UBS Securities, the ‘‘Index Co-Sponsors’’).18 The DJ–UBS CI According to the Registration Statement, the DJ–UBS CI, from which the DJ–UBS Roll Select CI is based, was created by AIG International Inc. in 1998 and acquired by UBS Securities in May 2009, at which time UBS Securities and Dow Jones entered into a joint marketing agreement to market the DJ– UBS CI and related indices. Dow Jones subsequently assigned its interest in the joint marketing agreement to CME Indexes. The Index Co-Sponsors are together responsible for calculating the DJ–UBS CI and related indices and subindices, including the Index and the DJ– UBS Roll Select CI. According to the Registration Statement, the DJ–UBS CI is a benchmark index composed of futures contracts on the underlying physical commodities, the selection and weighting of which are currently determined based on the five-year average of the trading volume, adjusted by the historic U.S. dollar value of the futures contract designated for inclusion in the DJ–UBS CI, and the five-year average of production figures, adjusted 18 According to the Sponsor, S&P Dow Jones Indices and its subsidiary DJI Opco, LLC are not broker-dealers and UBS Securities is a brokerdealer. UBS Securities has implemented a fire wall with respect to its personnel regarding access to information concerning the composition and/or changes to the Index, DJ–UBS CI and DJ–UBS Roll Select CI and the calculation of the values of the foregoing indexes, and will be subject to procedures designed to prevent the use and dissemination of material non-public information regarding the Index, DJ–UBS CI and DJ–UBS Roll Select CI. The Index Co-Sponsors have implemented and maintain procedures designed to prevent the use and dissemination of material non-public information regarding the DJ–UBS Roll Select CI, the DJ–UBS CI and the Index. E:\FR\FM\20MYN1.SGM 20MYN1 Federal Register / Vol. 78, No. 97 / Monday, May 20, 2013 / Notices by the historic U.S. dollar value of the futures contract designated for inclusion in the DJ–UBS CI. For each of the included commodities, specified futures contracts with specified delivery dates are designated for inclusion in the DJ– UBS CI. The DJ–UBS CI is reweighted and rebalanced annually, on a pricepercentage basis, to reflect changes in trading volume and production figures. According to the Registration Statement, the DJ–UBS CI reflects the increased or decreased return associated with ‘‘rolling’’ futures contracts. The DJ–UBS CI reflects the economic impact of the roll process by reducing the weights applied to expiring futures contracts while correspondingly increasing the weights applied to the futures contracts that are replacing such expiring futures contracts. This roll simulation is generally conducted at the beginning of each month over the course of five business days, lasting from the sixth business day until the tenth business day of each month. The DJ– UBS CI conducts its roll simulations each month by rolling out of the designated futures contracts expiring in that month and rolling into those designated futures contracts with the next closest designated delivery month. The DJ–UBS Roll Select CI According to the Registration Statement, the DJ–UBS Roll Select CI implements its rolling methodology by selecting from the eligible contracts for each commodity on its applicable ‘‘contract selection date,’’ the contract that exhibits the greatest amount of backwardation or least amount of contango, on an annualized basis, relative to the contract with the immediately preceding delivery date on the same commodity. This is accomplished by first dividing the price of each eligible contract from the price of the contract immediately preceding such eligible contract, to determine the percentage difference between the two prices. Because this price difference may be affected by the relative time between the eligible contract and its Commodity immediately preceding contract, this price difference is multiplied by 365 and divided by the number of actual days between the delivery dates of the two contracts, to arrive at a measure of the relative annualized contango/ backwardation, referred to as the ‘‘annualized spread,’’ exhibited between the eligible contract and the contract immediately preceding it. Based on a comparison of these annualized spreads, the eligible contract that has the highest annualized spread relative to its immediately preceding contract is the one selected as the contract for the DJ– UBS Roll Select CI to establish new positions in. This roll selection process generally occurs every month on the fourth business day of the month, subject to changes or adjustments to this process implemented by the Index CoSponsors. According to the Registration Statement, the Index Futures in which the Trust will invest will be based on the DJ–UBS Roll Select CI. The DJ–UBS Roll Select CI is a version of the DJ–UBS CI that tries to mitigate the effects of contango arising from the rolling process. Rather than incorporating the economic effect of rolling into futures contracts with the next closest designated delivery month, the DJ–UBS Roll Select CI incorporates the economic effect of rolling into applicable futures contracts that exhibit the least contango or, if applicable, the most backwardation, in each case relative to the contracts of the immediately preceding delivery month. Because the DJ–UBS Roll Select CI utilizes a different designated contract selection process than the DJ–UBS CI, the futures contracts comprising the DJ– UBS Roll Select CI at any particular time may have different delivery months than those comprising the DJ– UBS CI, and the levels of the DJ–UBS Roll Select CI and the DJ–UBS CI may correspondingly differ. In addition, as a result of this difference in rolling processes, both the performance of the DJ–UBS Roll Select CI and the DJ–UBS Designated contract Exchange* Units CI and the dollar-value weights of their respective underlying futures contracts are expected to differ over time. Determination of DJ–UBS CI Index Constituents According to the Registration Statement, the Index Co-Sponsors have established a two-tier oversight structure for the DJ–UBS CI, the DJ–UBS Roll Select CI and the Index comprised of the ‘‘Supervisory Committee’’ and the ‘‘Advisory Committee.’’ 19 The composition of the DJ–UBS CI is determined by UBS Securities each year under the supervision of, and in accordance with the procedures adopted by, the Supervisory Committee. The final composition of the DJ–UBS CI for each calendar year is subject to the approval of the Supervisory Committee in consultation with the Advisory Committee, and once this approval has been obtained, the new composition of the DJ–UBS CI is publicly announced, and takes effect in the month of January of the relevant calendar year. The relative weight of a commodity eligible for inclusion in the DJ–UBS CI, or its commodity index percentage (‘‘CIP’’), is initially determined based on (i) the relative production percentages of the commodities eligible for inclusion in the DJ–UBS CI and (ii) the relative liquidity of the futures contracts that have been designated as the eligible reference contracts for those commodities. This initial CIP calculation is then adjusted to give effect to caps and floors on such CIPs and to adjust the weights for gold and silver, the relative production numbers of which, according to the Dow JonesUBS Commodity IndexSM Handbook, last published by the Index Co-Sponsors as of May 2012, understate their economic significance. According to the Registration Statement, the commodities and related designated futures contracts currently included in the DJ–UBS CI and their respective final CIPs for 2013 are as follows: CIP** (percent) mstockstill on DSK4VPTVN1PROD with NOTICES Aluminum ................... High Grade Primary Aluminum. LME ........................... 25 metric tons ........... 4.913 Coffee ......................... Copper ....................... Corn ........................... Coffee ‘‘C’’ ................. Copper ....................... Corn ........................... ICE Futures U.S. ....... COMEX ..................... CBOT ........................ 37,500 lbs .................. 25,000 lbs .................. 5,000 bushels ............ 2.442 7.277 7.053 19 The Supervisory Committee and the Advisory Committee are subject to procedures designed to VerDate Mar<15>2010 19:09 May 17, 2013 Jkt 229001 prevent the improper use and dissemination of PO 00000 Frm 00096 Fmt 4703 Sfmt 4703 29413 Trading hours (E.T.)*** First session: 6:55AM to 7:00AM, 7:55AM to 8:00AM; second session: 10:15AM to 10:20AM, 10:55AM to 11:00AM. 3:30AM to 2:00PM. 6:00PM to 5:15PM Next Day. Sun–Fri: 8:00PM to 8:45 AM Next Day; Mon–Fri: 9:30AM to 2:15PM. material, non-public information regarding the Index, DJ–UBS Roll Select CI and DJ–UBS CI. E:\FR\FM\20MYN1.SGM 20MYN1 29414 Federal Register / Vol. 78, No. 97 / Monday, May 20, 2013 / Notices CIP** (percent) Commodity Designated contract Exchange* Units Cotton ......................... Crude Oil .................... ICE Futures U.S. ....... NYMEX ...................... 50,000 lbs .................. 1,000 barrels ............. 1.766 9.206 Gold ............................ Heating Oil ................. Live Cattle .................. Cotton ........................ Light, Sweet Crude Oil. Brent Crude Oil ......... Gold ........................... Heating Oil ................ Live Cattle ................. ICE Futures U.S. ....... COMEX ..................... NYMEX ...................... CME .......................... 1,000 barrels ............. 100 troy oz. ............... 42,000 gallons ........... 40,000 lbs .................. 5.794 10.819 3.519 3.283 Lean Hogs .................. Lean Hogs ................. CME .......................... 40,000 lbs .................. 1.900 Natural Gas ................ NYMEX ...................... 10,000 mmbtu ........... 10.424 Nickel ......................... Henry Hub Natural Gas. Primary Nickel ........... LME ........................... 6 metric tons ............. 2.244 Silver .......................... Soybeans ................... Silver ......................... Soybeans .................. COMEX ..................... CBOT ........................ 5000 troy oz. ............. 5,000 bushels ............ 3.898 5.495 Soybean Meal ............ Soybean Meal ........... CBOT ........................ 100 short tons ........... 2.607 Soybean Oil ............... Soybean Oil ............... CBOT ........................ 60,000 lbs .................. 2.743 Sugar .......................... Unleaded Gasoline .... World Sugar No. 11 .. Reformulated Blendstock for Oxygen Blending. Soft Wheat ................ ICE Futures U.S. ....... NYMEX ...................... 112,000 lbs ................ 42,000 gallons ........... 3.884 3.461 CBOT ........................ 5,000 bushels ............ 3.433 Wheat (Kansas) ......... Hard Red Winter Wheat. KCBOT ...................... 5,000 bushels ............ 1.321 Zinc ............................ Special High Grade Zinc. LME ........................... 25 metric tons ........... 2.519 Wheat (Chicago) ........ Trading hours (E.T.)*** 9:00PM to 2:30PM Next Day. 6:00PM to 5:15PM Next Day. 8:00PM to 6:00PM Next Day. 6:00PM to 5:15PM Next Day. 6:00PM to 5:15PM Next Day. Mon: 10:05AM to 5:00PM; Tue– Thurs: 6:00PM to 5:00PM Next Day; Fri: 6:00PM to 2:55PM Next Day. Mon: 10:05AM to 5:00PM; Tue– Thurs: 6:00PM to 5:00PM Next Day; Fri: 6:00PM to 2:55PM Next Day. 6:00PM to 5:15PM Next Day. First session: 6:15AM to 6:20AM, 8:00AM to 8:05AM; second session: 10:25AM to 10:30AM, 11:05AM to 11:10AM. 6:00PM to 5:15PM Next Day. Sun–Fri: 8:00PM to 8:45 AM Next Day; Mon–Fri: 9:30AM to 2:15PM. Sun–Fri: 8:00PM to 8:45 AM Next Day; Mon–Fri: 9:30AM to 2:15PM. Sun–Fri: 8:00PM to 8:45 AM Next Day; Mon–Fri: 9:30AM to 2:15PM. 2:30AM to 2:00PM. 6:00PM to 5:15PM Next Day. Sun–Fri: 8:00PM to 8:45 AM Next Day; Mon–Fri: 9:30AM to 2:15PM. Sun–Fri: 8:00PM to 8:45 AM Next Day; Mon–Fri: 9:30AM to 2:15PM. First session: 7:10AM to 7:15AM, 7:50AM to 7:55AM; second session: 10:05AM to 10:10AM, 10:45AM to 10:50AM. mstockstill on DSK4VPTVN1PROD with NOTICES * ‘‘LME’’ refers to the London Metal Exchange, and ‘‘ICE Futures U.S.’’ refers to ICE Futures U.S., Inc. ** Rounded to the nearest thousandth of a percentage. May not total to 100% due to rounding. *** Trading hours for the CME, CBOT, NYMEX and COMEX represent weekday electronic trading hours through CME Globex (electronic platform). Trading hours for LME represent ring trading times during each of first and second sessions; excludes kerb trading times. Calculation of the Index, DJ–UBS CI and DJ–UBS Roll Select CI According to the Registration Statement, the level of the DJ–UBS CI was set to be equal to 100 as of December 31, 1990. Subsequent levels of the DJ–UBS CI are determined by multiplying the level of the DJ–UBS CI as of the previous day by a fraction equal to (i) the weighted average value (‘‘WAV’’) of the DJ–UBS CI as of the current day divided by (ii) the WAV of the DJ–UBS CI as of the previous day, subject to adjustment for roll periods as described below. The WAV of the DJ–UBS CI on any given day is calculated by summing the products of the settlement prices of the designated futures contracts for each commodity multiplied by the commodity index VerDate Mar<15>2010 19:09 May 17, 2013 Jkt 229001 multiplier (‘‘CIM’’) of such designated contract. According to the Registration Statement, the CIMs of the designated contracts in the DJ–UBS CI are determined annually, generally on the fourth business day of each year (the date of such determination, the ‘‘CIM Determination Date’’). On the CIM Determination Date, initial CIMs (‘‘ICIMs’’) are calculated for each designated contract by multiplying such designated contract’s CIP by 1,000, then dividing such product by the designated contract’s settlement price as of the CIM Determination Date. To determine the final CIM for each designated contract for the new year, each ICIM is multiplied by an adjustment factor, which is a fraction equal to (i) the WAV PO 00000 Frm 00097 Fmt 4703 Sfmt 4703 of the DJ–UBS CI as of the CIM Determination Date, as calculated using the CIMs from the prior year, divided by (ii) 1,000. This adjustment factor is intended to preserve WAV continuity from one year to the next. According to the Registration Statement, during roll periods, which generally occur during the sixth through tenth business days of each month, the level of the DJ–UBS CI is calculated using a blended WAV formula that reflects the fact that the DJ–UBS CI is rolling out of expiring contracts and into replacement contracts. The WAV associated with the existing index components (‘‘Old WAV’’) begins weighted at 100% as of the business day preceding the roll period and decreases by 20% on each subsequent business E:\FR\FM\20MYN1.SGM 20MYN1 mstockstill on DSK4VPTVN1PROD with NOTICES Federal Register / Vol. 78, No. 97 / Monday, May 20, 2013 / Notices day until reduced to zero; it has no further effect on the level of the DJ–UBS CI by the fifth business day of such roll period. The WAV associated with the new index components (‘‘New WAV’’) begins weighted at 0% as of the business day preceding the roll period and increases by 20% on each subsequent business day such that by the fifth business day of such roll period, the level of the DJ–UBS CI is determined based entirely on the New WAV. Accordingly, during a roll period, the level of the DJ–UBS CI on any given day can be calculated as the product of the level of the DJ–UBS CI as of the previous day, multiplied by a fraction equal to: (i) Old WAV × (1¥0.2n) + New WAV × (0.2n), using the Old WAV and New WAV values as of such day, divided by (ii) Old WAV × (1 ¥0.2n) + New WAV × (0.2n), using the Old WAV and New WAV values as of the previous day. The variable ‘‘n’’ in this equation represents the number of business days that have elapsed for such roll period through and including the relevant date of determination. According to the Registration Statement, the DJ–UBS Roll Select CI will be calculated using the same general methodology as the DJ–UBS CI and using the same CIPs and CIMs used in connection with calculating the DJ–UBS CI. However, because the roll process for the DJ–UBS Roll Select CI is different from that of the DJ–UBS CI, its constituent futures contracts may differ from those included in the DJ–UBS CI. This difference is expected to cause the dollar-value weights and the weighted average value of the futures contracts included in each index to differ over time, and, as a result, cause the performance of the two indices to diverge. According to the Registration Statement, the Index combines the returns of the DJ–UBS Roll Select CI with the returns of the most recent weekly auction high rate for threemonth U.S. Treasury bills, as reported on the Web site https:// publicdebt.treas.gov/AI/OFBills under the column headed ‘‘Discount Rate %’’ published by the Bureau of the Public Debt of the U.S. Treasury, or any successor source. The level of the Index, which was set at a hypothetical level of 100 as of December 31, 1990, can be calculated on any given day as the product of the level of the Index as of the previous day, multiplied by the sum of (i) 1.00 plus (ii) the positive or negative percentage return on the DJ–UBS Roll Select CI on such day plus (iii) the daily return based on the VerDate Mar<15>2010 19:09 May 17, 2013 Jkt 229001 auction high rate for three-month U.S. Treasury bills described above. The Supervisory Committee and the Advisory Committee According to the Registration Statement, the Supervisory Committee is comprised of three members, two of whom are appointed by UBS Securities and one of whom is appointed by S&P Dow Jones Indices, and makes all final decisions relating to the DJ–UBS CI, taking into consideration any advice and recommendations of the Advisory Committee. The Advisory Committee consists of six to twelve members drawn from the financial and academic communities. Both the Supervisory and Advisory Committees meet annually to consider any changes to be made to the DJ–UBS CI for the coming year. These committees may also meet at such other times as may be necessary for the purposes of their respective responsibilities in connection with the oversight of the DJ–UBS CI. The Supervisory Committee has a significant degree of discretion in exercising its supervisory duties with respect to the DJ–UBS CI and related indices and sub-indices, including the Index and the DJ–UBS Roll Select CI. Additional information regarding the composition of the Index, DJ–UBS Roll Select CI, DJ–UBS CI and their index methodologies is included in the Registration Statement and at the Index Co-Sponsors’ Web site, www.djindexes.com. Net Asset Value According to the Registration Statement, the Trustee will determine the net asset value of the Trust and the net asset value per Share (‘‘NAV’’) as of 4:00 p.m. (Eastern Time (‘‘E.T.’’)) on each Business Day 20 on which the Exchange is open for regular trading, as soon as practicable after that time. According to the Registration Statement, the Trustee will value the Trust’s long positions in Index Futures on the basis of that day’s settlement prices for the Index Futures held by the Trust, as announced by the applicable Futures Exchange. The value of the Trust’s positions in any particular Index Future will equal the product of (a) The number of such Index Futures of such expiration owned by the Trust, (b) the settlement price of such Index Futures on the date of calculation and (c) the 20 A ‘‘Business Day’’ is defined as a day (1) on which none of the following occurs: (a) the Exchange is closed for regular trading, (b) a Futures Exchange is closed for regular trading or (c) the Federal Reserve wire transfer system is closed for cash wire transfers, or (2) that the Trustee determines that it is able to conduct business. PO 00000 Frm 00098 Fmt 4703 Sfmt 4703 29415 multiplier of such Index Futures.21 If there is no announced settlement price for a particular Index Future contract on a Business Day, the Trustee will use the most recently announced settlement price unless the Trustee, in consultation with the Sponsor, determines that such price is inappropriate as a basis for valuation. The daily settlement prices for the Index Futures initially held by the Trust will be established by the CME shortly after the close of trading for such Index Futures, which is generally 2:40 p.m. E.T. According to the Registration Statement, the Trustee will value all other holdings of the Trust at (a) current market value, if quotations for such property are readily available, or (b) fair value, as reasonably determined by the Trustee, if the current market value cannot be determined. According to the Registration Statement, once the value of the Index Futures and interest earned on the Trust’s Collateral Assets has been determined, the Trustee will subtract all accrued expenses and liabilities of the Trust as of the time of calculation in order to calculate the net asset value of the Trust. According to the Registration Statement, once the net asset value of the Trust has been calculated, the Trustee will determine the NAV by dividing the net asset value of the Trust by the number of Shares outstanding at the time the calculation is made. Any changes to NAV that may result from creation and redemption activity occurring on any Business Day will not be reflected in NAV until the following Business Day. Creation and Redemption of Shares According to the Registration Statement, the Trust will create and redeem Shares from time to time in one or more ‘‘Baskets’’ of 50,000 Shares each. Baskets may be created or redeemed only by authorized participants. According to the Registration Statement, Baskets will be typically issued or redeemed only in exchange for an amount of Index Futures and cash (or, in the discretion of the Sponsor, other Collateral Assets) equal to the ‘‘Basket Amount’’ for the Business Day on which the creation or redemption order is received by the Trustee.22 The 21 According to the Adviser, the multiplier reflects the contract size for a futures contract. The multiplier for the Index Futures is expected to be $100. 22 The ‘‘Basket Amount’’ is the amount of Index Futures and cash (or, in the discretion of the Sponsor, other Collateral Assets), that an authorized E:\FR\FM\20MYN1.SGM Continued 20MYN1 mstockstill on DSK4VPTVN1PROD with NOTICES 29416 Federal Register / Vol. 78, No. 97 / Monday, May 20, 2013 / Notices Basket Amount for a Business Day will have a per Share value equal to the NAV as of such day, and the assets included in the Basket Amount will be valued in the same manner and on the same basis as the Trust’s NAV calculations for its assets generally. Creation orders or redemption requests received after 2:40 E.T. will not be deemed received until the following Business Day. In limited circumstances and subject to the approval of the Trustee, Baskets may be created for cash equal to the NAV of the Shares constituting a Basket as determined on the date the related creation order was received, plus the costs incurred by the Trust in establishing the corresponding Index Futures positions and acquiring the related Collateral Assets. Creation orders for Baskets paid for solely in cash that are received after 10:00 a.m. E.T. will be deemed received as of the following Business Day. The Trustee will notify the authorized participants of the Basket Amount on each Business Day. According to the Registration Statement, creation and redemption of interests in the Trust generally will be effected through an ‘‘EFRP,’’ which is an exchange for related positions that involve contemporaneous transactions in futures contracts and the underlying cash commodity or a closely related commodity. In a typical EFRP, the buyer of the futures contract sells the underlying commodity to the seller of the futures contract. The CME permits the execution of EFRPs consisting of simultaneous purchases (sales) of Index Futures and sales (purchases) of Shares. This mechanism generally is expected to be used by the Trust in connection with the creation and redemption of Baskets. Specifically, according to the Registration Statement, it is anticipated that an authorized participant requesting the creation of additional Baskets typically will transfer Index Futures and cash (or, in the discretion of the Sponsor, other Collateral Assets) to the Trust in return for Shares. If an EFRP is executed in connection with the redemption of one or more Baskets, an authorized participant will transfer to the Trust the interests being redeemed and the Trust will transfer to the authorized participant Index Futures and cash or other Collateral Assets. The Trust may include Index Futures with different terms and expirations in the creation and redemption of Baskets, and participant must deliver in exchange for one Basket, or that an authorized participant is entitled to receive in exchange for each Basket surrendered for redemption. VerDate Mar<15>2010 19:09 May 17, 2013 Jkt 229001 the Index Futures included in creation Baskets may differ from those included in redemption Baskets. It is expected that delivery of the Shares or, in the case of a redemption, the Index Futures and cash or other Collateral Assets, will be made against transfer of consideration or Baskets, as the case may be, on the next Business Day following the Business Day on which the creation order or redemption request is received by the Trustee, which is referred to as a T+1 settlement cycle. When a Basket is created, upon the transfer of (1) the required consideration of Index Futures in the amounts and of the type specified by the Trustee, cash (or, in the discretion of the Sponsor, other Collateral Assets) in the amounts specified to the Trustee, in each case to the accounts specified by the Trustee, and (2) any and all transaction fees associated with creations per Basket, the Trustee will deliver the appropriate number of Baskets to the Depository Trust Company (‘‘DTC’’) account of the authorized participant. According to the Registration Statement, when a Basket is redeemed, after the delivery by the authorized participant to the Trustee’s DTC account of the total number of Shares to be redeemed by an authorized participant, the Trustee will deliver to the order of the redeeming authorized participant redemption proceeds consisting of Index Futures and cash (or, in the discretion of the Sponsor, other Collateral Assets). The assets included in the redemption proceeds will be valued in the same manner and on the same basis as the Trust’s NAV calculations for its assets generally. In connection with a redemption order, the redeeming authorized participant authorizes the Trustee to deduct from the proceeds of redemption any and all transaction fees associated with redemptions. Shares can be surrendered for redemption only in Baskets. The Trust will meet the initial and continued listing requirements applicable to TIRs in NYSE Arca Equities Rule 8.200 and Commentary .02 thereto. With respect to application of Rule 10A–3 23 under the Act, the Trust relies on the exception contained in Rule 10A–3(c)(7).24 A minimum of 100,000 Shares of the Trust will be outstanding as of the start of trading on the Exchange. A more detailed description of the Shares, the Trust, the Index and the Index Futures, as well as investment risks, creation and redemption 23 17 24 17 PO 00000 CFR 240.10A–3. CFR 240.10A–3(c)(7). Frm 00099 Fmt 4703 Sfmt 4703 procedures and fees is set forth in the Registration Statement. Availability of Information Regarding the Shares The NAV for the Shares will be disseminated to all market participants at the same time. The Exchange will also make available on its Web site daily trading volume of the Shares and the closing prices of such Shares. The intraday, closing prices and settlement prices of the Index Futures and the futures contracts included in the Index, DJ–UBS Roll Select CI and DJ–UBS CI are or will be readily available from the Web sites of the relevant futures exchanges, automated quotation systems, published or other public sources, or on-line 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. The specific contract specifications for the Index Futures and for the underlying futures contracts in the Index, DJ–UBS Roll Select CI and DJ–UBS CI are also available on such Web sites, as well as other financial informational sources. Information regarding the Collateral Assets will be available from applicable exchanges and market data vendors. Quotation and last sale information for the Shares will be available via the Consolidated Tape Association (‘‘CTA’’) high-speed line. The Sponsor’s Web site, https:// www.ishares.com, and/or the Exchange’s Web site, which are publicly accessible at no charge, will contain the following information: (a) The current NAV per Share daily and the prior business day’s NAV and the reported closing price; (b) the midpoint of the bid-ask price in relation to the NAV as of the time the NAV is calculated (the ‘‘Bid-Ask Price’’) 25; and (c) the prospectus. The Trust will also disseminate Trust holdings on a daily basis on the Trust’s Web site. The Trust will provide Web site disclosure of portfolio holdings daily and will include, as applicable, (i) the composite value of the total portfolio, (ii) the name, quantity, price and market value of each Index Future and Collateral Asset, and the characteristics of such Index Futures and Collateral Assets, and (iii) the amount of cash held in the portfolio of the Trust. 25 The Bid/Ask Price will be determined using the mid-point of the highest bid and the lowest offer on the Exchange as of the time of calculation of the NAV. The records relating to Bid/Ask Prices will be retained by the Trust and its service providers. E:\FR\FM\20MYN1.SGM 20MYN1 Federal Register / Vol. 78, No. 97 / Monday, May 20, 2013 / Notices mstockstill on DSK4VPTVN1PROD with NOTICES This Web site disclosure of the portfolio composition of the Trust will occur at the same time as the disclosure by the Sponsor of the portfolio composition to authorized participants so that all market participants are provided portfolio composition information at the same time. Therefore, the same portfolio information will be provided on the public Web site as well as in electronic files provided to authorized participants. Accordingly, each investor will have access to the current portfolio composition of the Trust through the Trust’s Web site. The Index Co-Sponsors will calculate and publish the value of the Index, the DJ–UBS Roll Select CI and DJ–UBS CI continuously on each business day, with such values updated at least every 15 seconds during the Core Trading Session (from 9:30 a.m. to 4:00 p.m. E.T.) and disseminated by S&P Dow Jones Indices to market data vendors. The contents and percentage weighting of the Index, the DJ–UBS Roll Select CI and DJ–UBS CI, will be available at the Index Co-Sponsors’ Web site, www.djindexes.com, and distributed to third-party data providers. The intra-day indicative value (‘‘IIV’’) per Share of the Trust will be based on the prior day’s final NAV per Share, adjusted every 15 seconds during the Core Trading Session to reflect the continuous price changes of the Trust’s Index Futures and other holdings. The IIV per Share will be widely disseminated by one or more major market data vendors at least every 15 seconds during the Core Trading Session.26 The Trustee will determine the net asset value of the Trust and the NAV as of 4:00 p.m. E.T., on each Business Day 27 on which the Exchange is open 26 Currently, it is the Exchange’s understanding that several major market data vendors display and/ or make widely available IIVs published on CTA or other data feeds. In addition, although not likely, circumstances may arise in which the NYSE Arca Core Trading Session is in progress, but trading in Index Futures is not occurring. Such circumstances may result from reasons including, but not limited to, the applicable Futures Exchange having a separate holiday schedule than the NYSE Arca or closing prior to the close of the NYSE Arca, price fluctuation limits being reached in an Index Future, or the applicable Futures Exchange imposing any other suspension or limitation on trading in an Index Future. In such instances, the value of the applicable Index Futures held by the Fund would be static or priced by the Fund at the applicable early cut-off time of the Futures Exchange trading the applicable Index Future. Moreover, any cash held by the Fund for collateralization purposes will be invested in Collateral Assets that do not have market exposure, such that their value would not change throughout the trading day. As such, during such periods, the disseminated IIV for the Fund will be static. 27 See note 20, supra. VerDate Mar<15>2010 19:09 May 17, 2013 Jkt 229001 for regular trading, or as soon as practicable after that time. Suitability Currently, NYSE Arca Equities Rule 9.2(a) (Diligence as to Accounts) provides that an Equity Trading Permit (‘‘ETP’’) Holder, before recommending a transaction in any security, must have reasonable grounds to believe that the recommendation is suitable for the customer based on any facts disclosed by the customer as to its other security holdings and as to its financial situation and needs. Further, the rule provides, with a limited exception, that prior to the execution of a transaction recommended to a non-institutional customer, the ETP Holder must make reasonable efforts to obtain information concerning the customer’s financial status, tax status, investment objectives, and any other information that such ETP Holder believes would be useful to make a recommendation. Prior to the commencement of trading, the Exchange will inform its ETP Holders of the suitability requirements of NYSE Arca Equities Rule 9.2(a) in an Information Bulletin (‘‘Bulletin’’). Specifically, ETP Holders will be reminded in the Bulletin that, in recommending transactions in these securities, they must have a reasonable basis to believe that (1) The recommendation is suitable for a customer given reasonable inquiry concerning the customer’s investment objectives, financial situation, needs, and any other information known by such member, and (2) the customer can evaluate the special characteristics, and is able to bear the financial risks, of an investment in the Shares. In connection with the suitability obligation, the Bulletin will also provide that members must make reasonable efforts to obtain the following information: (1) The customer’s financial status; (2) the customer’s tax status; (3) the customer’s investment objectives; and (4) such other information used or considered to be reasonable by such member or registered representative in making recommendations to the customer. FINRA has issued a regulatory notice providing guidance to firms about the supervision of complex products, as described in FINRA Regulatory Notice 12–03 (January 2012) (‘‘FINRA Regulatory Notice’’). While the FINRA Regulatory Notice does not provide a definition of what constitutes a ‘‘complex product,’’ it does identify characteristics that may make a product ‘‘complex’’ for purposes of determining whether the product should be subject to heightened supervisory and PO 00000 Frm 00100 Fmt 4703 Sfmt 4703 29417 compliance procedures.28 The Fund’s characteristics may raise issues similar to those raised in the FINRA Regulatory Notice. Therefore, the Bulletin will state that ETP Holders that carry customer accounts should follow the FINRA Regulatory Notice with respect to suitability. Trading Rules The Exchange deems the Shares to be equity securities, thus rendering trading in the Shares subject to the Exchange’s existing rules governing the trading of equity securities. Shares will trade on the NYSE Arca Marketplace from 4:00 a.m. to 8:00 p.m. E.T. The Exchange has appropriate rules to facilitate transactions in the Shares during all trading sessions. As provided in NYSE Arca Equities Rule 7.6, Commentary .03, the minimum price variation (‘‘MPV’’) for quoting and entry of orders in equity securities traded on the NYSE Arca Marketplace is $0.01, with the exception of securities that are priced less than $1.00, for which the MPV for order entry is $0.0001. The trading of the Shares will be subject to NYSE Arca Equities Rule 8.200, Commentary .02(e), which sets forth certain restrictions on ETP Holders acting as registered Market Makers in TIRs to facilitate surveillance. See ‘‘Surveillance’’ below for more information. 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 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 Index Futures, or (2) whether other unusual conditions or circumstances detrimental to the maintenance of a fair 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 29 or by the halt or suspension of trading of the underlying futures contracts. The Exchange may halt trading during the day in which an interruption to the dissemination of the IIV, the Index value or the value of the Index Futures occurs. If the interruption to the dissemination of the IIV, the Index value or the value of the Index Futures persists past the trading day in which it occurred, the Exchange will halt trading no later than the beginning of the 28 See 29 See E:\FR\FM\20MYN1.SGM FINRA Regulatory Notice, at 3–4. NYSE Arca Equities Rule 7.12. 20MYN1 29418 Federal Register / Vol. 78, No. 97 / Monday, May 20, 2013 / Notices trading day following an interruption. In addition, if the Exchange becomes aware that the NAV with respect to the Shares is not 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. mstockstill on DSK4VPTVN1PROD with NOTICES Surveillance The Exchange represents that trading in the Shares will be subject to the existing trading surveillances, administered by the Financial Industry Regulatory Authority (‘‘FINRA’’) on behalf of the Exchange, which are designed to detect violations of Exchange rules and applicable federal securities laws.30 The Exchange represents that these procedures are adequate to properly monitor Exchange trading of the Shares in all trading sessions and to deter and detect violations of Exchange rules and applicable federal securities laws. The surveillances referred to above generally focus on detecting securities trading outside their normal patterns, which could be indicative of manipulative or other violative activity. When such situations are detected, surveillance analysis follows and investigations are opened, where appropriate, to review the behavior of all relevant parties for all relevant trading violations. FINRA, on behalf of the Exchange, will communicate as needed regarding trading in the Shares with other markets that are members of the Intermarket Surveillance Group (‘‘ISG’’) or with which the Exchange has in place a comprehensive surveillance sharing agreement.31 The CME, CBOT, NYMEX and ICE Futures U.S. are members of ISG, and the Exchange may obtain market surveillance information with respect to transactions occurring on the COMEX pursuant to the ISG memberships of CME and NYMEX. In addition, the Exchange has entered into a comprehensive surveillance sharing agreement with the LME that applies with respect to trading in futures contracts currently included in the DJ– UBS CI and DJ–UBS Roll Select CI. In addition, with respect to Index Futures traded on exchanges, not more than 10% of the weight of such Index Futures in the aggregate shall consist of futures contracts whose principal 30 FINRA surveils trading on the Exchange pursuant to a regulatory services agreement. The Exchange is responsible for FINRA’s performance under this regulatory services agreement. 31 For a list of the current members of ISG, see www.isgportal.org. The Exchange notes that not all components of the portfolio for the Shares may trade on markets that are members of ISG or with which the Exchange has in place a comprehensive surveillance sharing agreement. VerDate Mar<15>2010 19:09 May 17, 2013 Jkt 229001 trading market (a) is not a member of ISG or (b) is a market with which the Exchange does not have a comprehensive surveillance sharing agreement, provided that, so long as the Exchange may obtain market surveillance information with respect to transactions occurring on the COMEX pursuant to the ISG memberships of CME and NYMEX, futures contracts whose principal trading market is COMEX shall not be subject to the prohibition in (a), above. The Exchange also has a general policy prohibiting the distribution of material, non-public information by its employees. Information Bulletin 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: (1) 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; (2) the procedures for purchases and redemptions of Shares in Baskets (and that Shares are not individually redeemable); (3) 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; (4) how information regarding the IIV is disseminated; (5) that a static IIV may be disseminated, between the close of trading on the applicable futures exchange and the close of the NYSE Arca Core Trading Session; 32 (6) 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 (7) trading information. In addition, the Information Bulletin will advise ETP Holders, prior to the commencement of trading, of the prospectus delivery requirements applicable to the Trust. The Exchange notes that investors purchasing Shares directly from the Trust will receive a prospectus. ETP Holders purchasing Shares from the Trust for resale to investors will deliver a prospectus to such investors. The Information Bulletin will also discuss any exemptive, noaction and interpretive relief granted by the Commission from any rules under the Act. In addition, the Information Bulletin will reference that the Trust is subject to various fees and expenses described 32 See PO 00000 note 26, supra. Frm 00101 Fmt 4703 in the Registration Statement. The Information Bulletin will also reference that the CFTC has regulatory jurisdiction over Index Futures traded on U.S. markets. The Information Bulletin will also disclose the trading hours of the Shares of the Trust and that the NAV for the Shares will be calculated after 4:00 p.m. E.T. each trading day. The Bulletin will disclose that information about the Shares of the Funds is publicly available on the Trust’s Web site. 2. Statutory Basis The basis under the Act for this proposed rule change is the requirement under Section 6(b)(5) 33 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 Exchange believes that the proposed rule change is designed to prevent fraudulent and manipulative acts and practices in that the Shares will be listed and traded on the Exchange pursuant to the initial and continued listing criteria in NYSE Arca Equities Rule 8.200 and Commentary .02 thereto. The Trust seeks to achieve its investment objective by investing in Index Futures and Collateral Assets posted as margin and held to collateralize the Trust’s Index Futures positions. The Sponsor represents that the Trust will invest in Index Futures and Collateral Assets, in a manner consistent with the Trust’s investment objective and not to achieve additional leverage. With respect to Index Futures traded on exchanges, not more than 10% of the weight of such Index Futures in the aggregate shall consist of futures contracts whose principal trading market (a) is not a member of ISG or (b) is a market with which the Exchange does not have a comprehensive surveillance sharing agreement, provided that, so long as the Exchange may obtain market surveillance information with respect to transactions occurring on the COMEX pursuant to the ISG memberships of CME and NYMEX, futures contracts whose principal trading market is COMEX shall not be subject to the prohibition in (a), above. The Exchange has in place surveillance procedures that are adequate to properly monitor trading in the Shares in all trading sessions and to deter and detect violations of Exchange rules and applicable federal securities 33 15 Sfmt 4703 E:\FR\FM\20MYN1.SGM U.S.C. 78f(b)(5). 20MYN1 mstockstill on DSK4VPTVN1PROD with NOTICES Federal Register / Vol. 78, No. 97 / Monday, May 20, 2013 / Notices laws. Prior to the commencement of trading, the Exchange will inform its ETP Holders of the suitability requirements of NYSE Arca Equities Rule 9.2(a) in a Bulletin. The Bulletin will state that ETP Holders that carry customer accounts should follow the FINRA Regulatory Notice with respect to suitability. The Exchange may obtain information via ISG from other exchanges that are members of ISG or with which the Exchange has entered into a comprehensive surveillance sharing agreement. The Adviser is not a broker-dealer but is affiliated with a broker-dealer and has implemented a firewall with respect to such brokerdealer affiliate as well as procedures designed to prevent the use and dissemination of material non-public information regarding the assets of the Trust. UBS Securities has implemented a fire wall with respect to its personnel regarding access to information concerning the composition and/or changes to the Index, DJ–UBS CI and DJ–UBS Roll Select CI and the calculation of the values of the foregoing indexes, and will be subject to procedures designed to prevent the use and dissemination of material nonpublic information regarding the Index, DJ–UBS CI and DJ–UBS Roll Select CI. The Index Co-Sponsors have implemented and maintain procedures designed to prevent the use and dissemination of material non-public information regarding the DJ–UBS Roll Select CI, the DJ–UBS CI and the Index. The Supervisory Committee and the Advisory Committee are subject to procedures designed to prevent the use and dissemination of material, nonpublic information regarding the Index, DJ–UBS Roll Select CI and DJ–UBS CI. Trading may be halted because of market conditions or for reasons that, in the view of the Exchange, make trading in the Shares inadvisable. These may include: (1) The extent to which trading is not occurring in the Index Futures, or (2) whether other unusual conditions or circumstances detrimental to the maintenance of a fair and orderly market are present. 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 of the Designated Contracts. The Exchange represents that the Exchange may halt trading during the day in which the interruption to the dissemination of the IIV, the Index value or the value of the Index Futures occurs. If the interruption to the dissemination of the IIV, the Index value or the value of the Index Futures VerDate Mar<15>2010 19:09 May 17, 2013 Jkt 229001 persists past the trading day in which it occurred, the Exchange will halt trading no later than the beginning of the trading day following an interruption. In addition, if the Exchange becomes aware that the NAV with respect to the Shares is not 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. The proposed rule change is designed to promote just and equitable principles of trade and to protect investors and the public interest in that a large amount of information is publicly available regarding the Trust and the Shares, thereby promoting market transparency. The NAV for the Shares will be disseminated to all market participants at the same time. The IIV per Share will be widely disseminated by one or more major market data vendors at least every 15 seconds during the Core Trading Session. Trading in Shares of the Trust will be halted if the circuit breaker parameters in NYSE Arca Equities Rule 7.12 have been reached or because of market conditions or for reasons that, in the view of the Exchange, make trading in the Shares inadvisable. Moreover, 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. The Trust will provide Web site disclosure of portfolio holdings daily and will include, as applicable, (i) the composite value of the total portfolio, (ii) the name, quantity, price and market value of each Index Future and Collateral Asset, and the characteristics of such Index Futures and Collateral Assets, and (iii) the amount of cash held in the portfolio of the Trust. The value of the Index, DJ– UBS Roll Select CI and DJ–UBS CI will be widely disseminated by one or more major market data vendors at least every 15 seconds during the Core Trading Session. The intraday, closing prices and settlement prices of the Index Futures and the futures contracts included in the Index, DJ–UBS Roll Select CI and DJ–UBS CI are or will be readily available from the Web sites of the relevant futures exchanges, automated quotation systems, published or other public sources, or on-line information services such as Bloomberg or Reuters. The contents and percentage weighting of the Index, the DJ–UBS Roll Select CI and DJ–UBS CI, will be available at the Index Co-Sponsors’ Web site, www.djindexes.com, and distributed to third-party data providers. The Exchange will also make available on its Web site daily trading volume of PO 00000 Frm 00102 Fmt 4703 Sfmt 4703 29419 each of the Shares and the closing prices of such Shares. The prices of the Index Futures and Collateral Assets will be available from the applicable exchanges and market data vendors. The proposed rule change is designed to perfect the mechanism of a free and open market and, in general, to protect investors and the public interest in that it will facilitate the listing and trading of an additional type of exchange-traded product that will enhance competition among market participants, to the benefit of investors and the marketplace. As noted above, the Exchange has in place surveillance procedures relating to trading in the Shares and may obtain information via ISG from other exchanges that are members of ISG or with which the Exchange has entered into a comprehensive surveillance sharing agreement. In addition, as noted above, investors will have ready access to information regarding the Trust’s holdings, IIV, and quotation and last sale information for the Shares. 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 notes that the proposed rule change will facilitate the listing and trading of an additional type of exchange-traded product that will enhance competition among market participants, to the benefit of investors and the marketplace. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received from Members, Participants, or Others 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 Within 45 days of the date of publication of this notice in the Federal Register or within such longer period (i) as the Commission may designate up to 90 days of such date if it finds such longer period to be appropriate and publishes its reasons for so finding or (ii) as to which the 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. E:\FR\FM\20MYN1.SGM 20MYN1 29420 Federal Register / Vol. 78, No. 97 / Monday, May 20, 2013 / Notices IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change, as modified by Amendment No. 1 thereto, 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 rulecomments@sec.gov. Please include File Number SR–NYSEArca–2013–48 on the subject line. mstockstill on DSK4VPTVN1PROD with NOTICES • 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–2013–48. 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 will also 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 No. SR–NYSEArca– 2013–48 and should be submitted on or before June 10, 2013. 19:09 May 17, 2013 [FR Doc. 2013–11897 Filed 5–17–13; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–69570; File No. SR–C2– 2013–020] Self-Regulatory Organizations; C2 Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fees Schedule May 14, 2013. Paper Comments VerDate Mar<15>2010 For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.34 Kevin M. O’Neill, Deputy Secretary. Jkt 229001 Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on May 01, 2013, C2 Options Exchange, Incorporated (the ‘‘Exchange’’ or ‘‘C2’’) filed with the Securities and Exchange Commission (the ‘‘Commission’’) the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. 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 amend its Fees Schedule. The text of the proposed rule change is available on the Exchange’s Web site (https:// www.c2exchange.com/Legal/), at the Exchange’s Office of the Secretary, 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 Exchange 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 these 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 aspects of such statements. CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend its Fees Schedule. First, the Exchange proposes to make changes to its fees for orders in all multiply-listed index and ETF options classes. Currently, the Exchange offers a rebate for Public Customer complex orders, including those that trade against simple (noncomplex) orders (excluding trades on the open, for which no fees are assessed or rebates given). However, the Exchange also offers a rebate for all Maker simple orders (excluding trades on the open, for which no fees are assessed or rebates given). Therefore, in circumstances when a Public Customer complex order trades against a simple Maker order, the Exchange pays a rebate to both market participants and takes in no fees. The Exchange has determined that this is not economically viable. Therefore, the Exchange proposes to add a note that applies to the listing of all Maker rebates in Section 1A of the Fees Schedule (which discusses fees for simple, non-complex orders in all multiply-listed index and ETF options classes) that states ‘‘Rebates do not apply to orders that trade with Public Customer complex orders. In such a circumstance, there will be no fee or rebate.’’ The Exchange also proposes to amend the note that already applies to the listing of all Public Customer rebates in Section 1D [sic] 3 of the Fees Schedule (which discusses fees for complex orders in all multiply-listed index and ETF options classes). This note currently states that the rebate for Public Customer complex orders does not apply to Public Customer orders that trade with other Public Customer orders. In such a circumstance, there will be no Maker or Taker fee or rebate. The Exchange proposes to amend this note to state that the rebate (for Public Customer complex orders) will only apply to Public Customer complex orders that trade with non-Public Customer complex orders. In other circumstances, there will be no Maker or Taker fee or rebate. This simple language achieves the goal of excepting out Public Customer complex orders that trade with simple orders from receiving the rebate (as well as excepting out Public Customer complex orders that trade with other Public Customer complex orders, which were already excepted out of receiving the 34 17 1 15 PO 00000 Frm 00103 Fmt 4703 Sfmt 4703 3 The Commission notes that the proposed change modifies section 1C of the Fees Schedule, not 1D. E:\FR\FM\20MYN1.SGM 20MYN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 78, Number 97 (Monday, May 20, 2013)]
[Notices]
[Pages 29411-29420]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-11897]

[[Page 29411]]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-69573; File No. SR-NYSEArca-2013-48]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
of Proposed Rule Change, as Modified by Amendment No. 1 Thereto, To
List and Trade Shares of iShares Dow Jones-UBS Roll Select Commodity
Index Trust Pursuant to NYSE Arca Equities Rule 8.200

May 14, 2013.
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 May 1, 2013, 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, II,
and III below, which Items have been prepared by the Exchange. On May
3, 2013, the Exchange filed Amendment No. 1 to the proposed rule
change.\4\ The Commission is publishing this notice to solicit comments
on the proposed rule change, as modified by Amendment No. 1 thereto,
from interested persons.
---------------------------------------------------------------------------

\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
\4\ In Amendment No. 1, the Exchange made a technical correction
and clarified that UBS Securities has implemented a fire wall with
respect to its personnel regarding access to information concerning,
among other things, the calculation of the values of the Index, DJ-
UBS CI, and DJ-UBS Roll Select CI (as such terms are defined below).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

The Exchange proposes to list and trade shares of iShares Dow
Jones-UBS Roll Select Commodity Index Trust (the ``Trust'') under NYSE
Arca Equities Rule 8.200. 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
Statutory Basis for, the Proposed Rule Change

1. Purpose
NYSE Arca Equities Rule 8.200, Commentary .02 permits the trading
of Trust Issued Receipts (``TIRs'') either by listing or pursuant to
unlisted trading privileges (``UTP'').\5\ The Exchange proposes to list
and trade the shares (the ``Shares'') of the Trust pursuant to NYSE
Arca Equities Rule 8.200.
---------------------------------------------------------------------------

\5\ Commentary .02 to NYSE Arca Equities Rule 8.200 applies to
TIRs that invest in ``Financial Instruments.'' The term ``Financial
Instruments,'' as defined in Commentary .02(b)(4) to NYSE Arca
Equities Rule 8.200, means any combination of investments, including
cash; securities; options on securities and indices; futures
contracts; options on futures contracts; forward contracts; equity
caps, collars and floors; and swap agreements.
---------------------------------------------------------------------------

The Exchange notes that the U.S. Securities and Exchange Commission
(``Commission'') has previously approved the listing and trading of
other issues of TIRs on the American Stock Exchange LLC \6\ and listing
on NYSE Arca.\7\ In addition, the Commission has approved other
exchange-traded fund-like products linked to the performance of
underlying commodities.\8\
---------------------------------------------------------------------------

\6\ See, e.g., Securities Exchange Act Release No. 58161 (July
15, 2008), 73 FR 42380 (July 21, 2008) (SR-Amex-2008-39) (order
approving amendments to Amex Rule 1202, Commentary .07 and listing
on Amex of 14 funds of the Commodities and Currency Trust).
\7\ See, e.g., Securities Exchange Act Release No. 58457
(September 3, 2008), 73 FR 52711 (September 10, 2008) (SR-NYSEArca-
2008-91) (order approving listing on NYSE Arca of 14 funds of the
Commodities and Currency Trust).
\8\ See, e.g., Securities Exchange Act Release No. 56932
(December 7, 2007), 72 FR 71178 (December 14, 2007) (SR-NYSEArca-
2007-112) (order granting accelerated approval to list iShares S&P
GSCI Commodity-Indexed Trust).
---------------------------------------------------------------------------

The Shares represent units of beneficial interests in the Trust, as
described in the Registration Statement.\9\ The Trust is a Delaware
statutory trust. The sponsor of the Trust is iShares (copyright)
Delaware Trust Sponsor LLC (the ``Sponsor''), a Delaware limited
liability company. The Trust is operated by the Sponsor, an indirect
subsidiary of BlackRock, Inc. The Sponsor is a commodity pool operator
registered with the Commodity Futures Trading Commission (``CFTC'') and
a member of the National Futures Association (``NFA''). BlackRock Asset
Management International Inc., a Delaware corporation and an indirect
subsidiary of BlackRock, Inc., is the sole member and manager of the
Sponsor. BlackRock Institutional Trust Company, N.A., a national
banking association, an indirect subsidiary of BlackRock, Inc., and an
affiliate of the Sponsor, is the trustee of the Trust (the
``Trustee''). BlackRock Fund Advisors (the ``Adviser''),\10\ a
California corporation, an indirect subsidiary of BlackRock, Inc., and
an affiliate of the Sponsor, serves as the commodity trading adviser of
the Trust, is registered as a commodity trading adviser with the CFTC
and is a member of the NFA.\11\ State Street Bank and Trust Company, a
trust company organized under the laws of Massachusetts, is the
administrator (``Administrator'') of the Trust.
---------------------------------------------------------------------------

\9\ See the pre-effective amendment to the registration
statement on Form S-1 for the Trust, dated February 8, 2013 (File
No. 333-178376) relating to the Shares (the ``Registration
Statement''). The discussion herein relating to the Trust and the
Shares is based, in part, on the Registration Statement. Terms used
but not defined herein are used as defined in the Registration
Statement.
\10\ The Adviser is not a broker-dealer but is affiliated with a
broker-dealer and has implemented a firewall with respect to such
broker-dealer affiliate as well as procedures designed to prevent
the use and dissemination of material non-public information
regarding the assets of the Trust.
\11\ According to the Sponsor, the Sponsor will be responsible
for the overall management of the Trust and the Trustee will be
responsible for the day-to-day administration of the Trust. The
Adviser will act as the commodity trading advisor for the Trust with
discretionary authority to make determinations with respect to the
Trust's assets, but will not engage in any activities designed to
obtain a profit from, or ameliorate losses caused by, changes to the
level of the underlying index. The Sponsor represents that it will
implement and maintain procedures designed to prevent the use and
dissemination of material non-public information regarding the
assets of the Trust.
---------------------------------------------------------------------------

According to the Registration Statement, the investment objective
of the Trust will be to seek investment results that correspond
generally, but are not necessarily identical, to the performance of the
Dow Jones-UBS Roll Select Commodity Index Total Return (the ``Index''),
which reflects the returns on a fully collateralized investment in the
Dow Jones-UBS Roll Select Commodity Index (``DJ-UBS Roll Select CI''),
before the payment of expenses and liabilities of the Trust. The DJ-UBS
Roll Select CI is calculated based on the same commodities, though not
always the same futures contracts, that are included in the Dow Jones-
UBS Commodity Index (the ``DJ-UBS CI''). The DJ-UBS CI is a liquidity-
and production-weighted index of the prices of a diversified group of
futures contracts on physical commodities. The DJ-UBS CI forms the base
commodities index from which the DJ-UBS Roll Select CI and the Index
are derived.
According to the Registration Statement, the assets of the Trust
will

[[Page 29412]]

consist of long positions in Futures Exchange \12\-traded index futures
contracts of various expirations (``Index Futures'') \13\ on the DJ-UBS
Roll Select CI, together with cash, U.S. Treasury securities or other
short-term securities and similar securities that are eligible as
margin deposits for those Index Futures positions (``Collateral
Assets'').\14\ The Trust is expected to roll out of existing positions
and establish new positions in Index Futures on an ongoing basis.\15\
---------------------------------------------------------------------------

\12\ As used herein, ``Futures Exchange'' means the Chicago
Mercantile Exchange (``CME'') or one of the CME Group Inc.'s other
designated contract markets, or any additional or successor
designated contract markets through which the Trust trades Index
Futures (as defined herein). The designated contract markets of the
CME Group Inc. are the CME, Chicago Board of Trade (``CBOT''), New
York Mercantile Exchange Inc. (``NYMEX'') and Commodity Exchange,
Inc. (``COMEX'').
\13\ The Trust's Index Futures will be subject to the rules of
the relevant Futures Exchange, which will initially be CME. The
Index Futures will initially trade on GLOBEX, the CME's electronic
trading system, and are not expected to trade through open outcry on
the floor of the CME.
\14\ The Sponsor represents that the Trust will invest in Index
Futures and Collateral Assets, in a manner consistent with the
Trust's investment objective and not to achieve additional leverage.
\15\ The Index Futures initially held by the Trust will have
quarterly expirations and be listed for trading by the CME.
Subsequent Index Futures held by the Trust may have longer or
shorter expirations, different terms, and may be listed on other
Futures Exchanges.
---------------------------------------------------------------------------

According to the Registration Statement, in order to collateralize
its Index Futures positions and to reflect the U.S. Treasury component
of the Index, the Trust will hold Collateral Assets, from which it will
post margin to its clearing futures commission merchant (the ``Clearing
FCM''), in an amount equal to the margin required by the relevant
Futures Exchange, and transfer to its Clearing FCM any additional
amounts that may be separately required by the Clearing FCM.\16\ Any
Collateral Assets not required to be posted as margin with the Clearing
FCM will be held in the Trust's accounts established at its
Administrator.
---------------------------------------------------------------------------

\16\ When establishing positions in Index Futures, the Trust
will be required to deposit initial margin with a value of
approximately 3% to 10% of the value of each Index Futures position
at the time it is established. These margin requirements are subject
to change from time to time by the Exchange or the Clearing FCM. On
a daily basis, the Trust will be obligated to pay, or entitled to
receive, variation margin in an amount equal to the change in the
daily settlement level of its Index Futures positions.
---------------------------------------------------------------------------

According to the Registration Statement, the Trust will be a
passive investor in Index Futures and the Collateral Assets held to
satisfy applicable margin requirements on those Index Futures
positions. At any time when Index Futures of more than one expiration
date are listed on the Futures Exchange, the Sponsor will determine,
pursuant to the terms of the trust agreement, which Index Futures of a
given expiration will be transferred in connection with either the
creation or redemption of Shares. The Adviser will not engage in any
activities designed to obtain a profit from, or to ameliorate losses
caused by, changes in the level of the Index or the DJ-UBS Roll Select
CI or the value of the Collateral Assets.
According to the Registration Statement, the profit or loss on the
Trust's Index Futures positions should correlate with increases and
decreases in the value of the DJ-UBS Roll Select CI, although this
correlation is not expected to be exact. The return on the Index
Futures, together with interest on the Collateral Assets, is expected
to result in a total return that corresponds generally, but is not
identical, to the Index.
The Index, DJ-UBS CI and DJ-UBS Roll Select CI
According to the Registration Statement, the Index reflects the
value of the DJ-UBS Roll Select CI together with the returns on
specified U.S. Treasury securities that are deemed to have been held to
collateralize a hypothetical long position in the futures contracts
comprising the DJ-UBS Roll Select CI.
According to the Registration Statement, the DJ-UBS Roll Select CI
is calculated based on the same commodities, though not always the same
futures contracts, that are included in the DJ-UBS CI, which is a
liquidity- and production-weighted index of the prices of a diversified
group of futures contracts on physical commodities. The DJ-UBS Roll
Select CI seeks to minimize the effect of contango and maximize the
effect of backwardation by selecting replacement futures contracts that
exhibit the most backwardation or least contango among those eligible
futures contracts with delivery months of up to 273 calendar days until
expiration.\17\
---------------------------------------------------------------------------

\17\ Markets for futures contracts can exhibit
``backwardation,'' which means that futures contracts with distant
delivery months are priced lower than those with nearer delivery
months, or can exhibit ``contango,'' which means that futures
contracts with distant delivery months are priced higher than those
with nearer delivery months.
---------------------------------------------------------------------------

According to the Registration Statement, the DJ-UBS Roll Select CI
incorporates the economic effect of ``rolling'' the futures contracts
included in the applicable index and the DJ-UBS CI reflects the
economic effect of ``rolling'' futures contracts into front-month
futures contracts. ``Rolling'' a futures contract means closing out a
position in an expiring futures contract and establishing an equivalent
position in a new futures contract on the same commodity.
According to the Registration Statement, the DJ-UBS Roll Select CI
differs from the DJ-UBS CI in that it does not roll into the futures
contract with the nearest designated delivery month. Rather, the DJ-UBS
Roll Select CI rolls into those eligible futures contracts with
delivery months of up to 273 calendar days until expiration that
exhibit the most backwardation or that exhibit the least contango.
The DJ-UBS Roll Select CI, the DJ-UBS CI and the Index are
administered, calculated and published by UBS Securities LLC (``UBS
Securities'') and DJI Opco, LLC, a wholly-owned subsidiary of S&P Dow
Jones Indices LLC (``S&P Dow Jones Indices'' and, together with UBS
Securities, the ``Index Co-Sponsors'').\18\
---------------------------------------------------------------------------

\18\ According to the Sponsor, S&P Dow Jones Indices and its
subsidiary DJI Opco, LLC are not broker-dealers and UBS Securities
is a broker-dealer. UBS Securities has implemented a fire wall with
respect to its personnel regarding access to information concerning
the composition and/or changes to the Index, DJ-UBS CI and DJ-UBS
Roll Select CI and the calculation of the values of the foregoing
indexes, and will be subject to procedures designed to prevent the
use and dissemination of material non-public information regarding
the Index, DJ-UBS CI and DJ-UBS Roll Select CI. The Index Co-
Sponsors have implemented and maintain procedures designed to
prevent the use and dissemination of material non-public information
regarding the DJ-UBS Roll Select CI, the DJ-UBS CI and the Index.
---------------------------------------------------------------------------

The DJ-UBS CI
According to the Registration Statement, the DJ-UBS CI, from which
the DJ-UBS Roll Select CI is based, was created by AIG International
Inc. in 1998 and acquired by UBS Securities in May 2009, at which time
UBS Securities and Dow Jones entered into a joint marketing agreement
to market the DJ-UBS CI and related indices. Dow Jones subsequently
assigned its interest in the joint marketing agreement to CME Indexes.
The Index Co-Sponsors are together responsible for calculating the DJ-
UBS CI and related indices and sub-indices, including the Index and the
DJ-UBS Roll Select CI.
According to the Registration Statement, the DJ-UBS CI is a
benchmark index composed of futures contracts on the underlying
physical commodities, the selection and weighting of which are
currently determined based on the five-year average of the trading
volume, adjusted by the historic U.S. dollar value of the futures
contract designated for inclusion in the DJ-UBS CI, and the five-year
average of production figures, adjusted

[[Page 29413]]

by the historic U.S. dollar value of the futures contract designated
for inclusion in the DJ-UBS CI. For each of the included commodities,
specified futures contracts with specified delivery dates are
designated for inclusion in the DJ-UBS CI. The DJ-UBS CI is reweighted
and rebalanced annually, on a price-percentage basis, to reflect
changes in trading volume and production figures.
According to the Registration Statement, the DJ-UBS CI reflects the
increased or decreased return associated with ``rolling'' futures
contracts. The DJ-UBS CI reflects the economic impact of the roll
process by reducing the weights applied to expiring futures contracts
while correspondingly increasing the weights applied to the futures
contracts that are replacing such expiring futures contracts. This roll
simulation is generally conducted at the beginning of each month over
the course of five business days, lasting from the sixth business day
until the tenth business day of each month. The DJ-UBS CI conducts its
roll simulations each month by rolling out of the designated futures
contracts expiring in that month and rolling into those designated
futures contracts with the next closest designated delivery month.
The DJ-UBS Roll Select CI
According to the Registration Statement, the DJ-UBS Roll Select CI
implements its rolling methodology by selecting from the eligible
contracts for each commodity on its applicable ``contract selection
date,'' the contract that exhibits the greatest amount of backwardation
or least amount of contango, on an annualized basis, relative to the
contract with the immediately preceding delivery date on the same
commodity. This is accomplished by first dividing the price of each
eligible contract from the price of the contract immediately preceding
such eligible contract, to determine the percentage difference between
the two prices. Because this price difference may be affected by the
relative time between the eligible contract and its immediately
preceding contract, this price difference is multiplied by 365 and
divided by the number of actual days between the delivery dates of the
two contracts, to arrive at a measure of the relative annualized
contango/backwardation, referred to as the ``annualized spread,''
exhibited between the eligible contract and the contract immediately
preceding it. Based on a comparison of these annualized spreads, the
eligible contract that has the highest annualized spread relative to
its immediately preceding contract is the one selected as the contract
for the DJ-UBS Roll Select CI to establish new positions in. This roll
selection process generally occurs every month on the fourth business
day of the month, subject to changes or adjustments to this process
implemented by the Index Co-Sponsors.
According to the Registration Statement, the Index Futures in which
the Trust will invest will be based on the DJ-UBS Roll Select CI. The
DJ-UBS Roll Select CI is a version of the DJ-UBS CI that tries to
mitigate the effects of contango arising from the rolling process.
Rather than incorporating the economic effect of rolling into futures
contracts with the next closest designated delivery month, the DJ-UBS
Roll Select CI incorporates the economic effect of rolling into
applicable futures contracts that exhibit the least contango or, if
applicable, the most backwardation, in each case relative to the
contracts of the immediately preceding delivery month.
Because the DJ-UBS Roll Select CI utilizes a different designated
contract selection process than the DJ-UBS CI, the futures contracts
comprising the DJ-UBS Roll Select CI at any particular time may have
different delivery months than those comprising the DJ-UBS CI, and the
levels of the DJ-UBS Roll Select CI and the DJ-UBS CI may
correspondingly differ. In addition, as a result of this difference in
rolling processes, both the performance of the DJ-UBS Roll Select CI
and the DJ-UBS CI and the dollar-value weights of their respective
underlying futures contracts are expected to differ over time.
Determination of DJ-UBS CI Index Constituents
According to the Registration Statement, the Index Co-Sponsors have
established a two-tier oversight structure for the DJ-UBS CI, the DJ-
UBS Roll Select CI and the Index comprised of the ``Supervisory
Committee'' and the ``Advisory Committee.'' \19\ The composition of the
DJ-UBS CI is determined by UBS Securities each year under the
supervision of, and in accordance with the procedures adopted by, the
Supervisory Committee. The final composition of the DJ-UBS CI for each
calendar year is subject to the approval of the Supervisory Committee
in consultation with the Advisory Committee, and once this approval has
been obtained, the new composition of the DJ-UBS CI is publicly
announced, and takes effect in the month of January of the relevant
calendar year.
---------------------------------------------------------------------------

\19\ The Supervisory Committee and the Advisory Committee are
subject to procedures designed to prevent the improper use and
dissemination of material, non-public information regarding the
Index, DJ-UBS Roll Select CI and DJ-UBS CI.
---------------------------------------------------------------------------

The relative weight of a commodity eligible for inclusion in the
DJ-UBS CI, or its commodity index percentage (``CIP''), is initially
determined based on (i) the relative production percentages of the
commodities eligible for inclusion in the DJ-UBS CI and (ii) the
relative liquidity of the futures contracts that have been designated
as the eligible reference contracts for those commodities. This initial
CIP calculation is then adjusted to give effect to caps and floors on
such CIPs and to adjust the weights for gold and silver, the relative
production numbers of which, according to the Dow Jones-UBS Commodity
Index\SM\ Handbook, last published by the Index Co-Sponsors as of May
2012, understate their economic significance.
According to the Registration Statement, the commodities and
related designated futures contracts currently included in the DJ-UBS
CI and their respective final CIPs for 2013 are as follows:

--------------------------------------------------------------------------------------------------------------------------------------------------------
CIP** Trading hours
Commodity Designated contract Exchange* Units (percent) (E.T.)***
--------------------------------------------------------------------------------------------------------------------------------------------------------
Aluminum....................... High Grade Primary LME............................ 25 metric tons................. 4.913 First session:
Aluminum. 6:55AM to 7:00AM,
7:55AM to 8:00AM;
second session:
10:15AM to 10:20AM,
10:55AM to 11:00AM.
Coffee......................... Coffee ``C''........ ICE Futures U.S................ 37,500 lbs..................... 2.442 3:30AM to 2:00PM.
Copper......................... Copper.............. COMEX.......................... 25,000 lbs..................... 7.277 6:00PM to 5:15PM
Next Day.
Corn........................... Corn................ CBOT........................... 5,000 bushels.................. 7.053 Sun-Fri: 8:00PM to
8:45 AM Next Day;
Mon-Fri: 9:30AM to
2:15PM.

[[Page 29414]]

Cotton......................... Cotton.............. ICE Futures U.S................ 50,000 lbs..................... 1.766 9:00PM to 2:30PM
Next Day.
Crude Oil...................... Light, Sweet Crude NYMEX.......................... 1,000 barrels.................. 9.206 6:00PM to 5:15PM
Oil. Next Day.
Brent Crude Oil..... ICE Futures U.S................ 1,000 barrels.................. 5.794 8:00PM to 6:00PM
Next Day.
Gold........................... Gold................ COMEX.......................... 100 troy oz.................... 10.819 6:00PM to 5:15PM
Next Day.
Heating Oil.................... Heating Oil......... NYMEX.......................... 42,000 gallons................. 3.519 6:00PM to 5:15PM
Next Day.
Live Cattle.................... Live Cattle......... CME............................ 40,000 lbs..................... 3.283 Mon: 10:05AM to
5:00PM; Tue-Thurs:
6:00PM to 5:00PM
Next Day; Fri:
6:00PM to 2:55PM
Next Day.
Lean Hogs...................... Lean Hogs........... CME............................ 40,000 lbs..................... 1.900 Mon: 10:05AM to
5:00PM; Tue-Thurs:
6:00PM to 5:00PM
Next Day; Fri:
6:00PM to 2:55PM
Next Day.
Natural Gas.................... Henry Hub Natural NYMEX.......................... 10,000 mmbtu................... 10.424 6:00PM to 5:15PM
Gas. Next Day.
Nickel......................... Primary Nickel...... LME............................ 6 metric tons.................. 2.244 First session:
6:15AM to 6:20AM,
8:00AM to 8:05AM;
second session:
10:25AM to 10:30AM,
11:05AM to 11:10AM.
Silver......................... Silver.............. COMEX.......................... 5000 troy oz................... 3.898 6:00PM to 5:15PM
Next Day.
Soybeans....................... Soybeans............ CBOT........................... 5,000 bushels.................. 5.495 Sun-Fri: 8:00PM to
8:45 AM Next Day;
Mon-Fri: 9:30AM to
2:15PM.
Soybean Meal................... Soybean Meal........ CBOT........................... 100 short tons................. 2.607 Sun-Fri: 8:00PM to
8:45 AM Next Day;
Mon-Fri: 9:30AM to
2:15PM.
Soybean Oil.................... Soybean Oil......... CBOT........................... 60,000 lbs..................... 2.743 Sun-Fri: 8:00PM to
8:45 AM Next Day;
Mon-Fri: 9:30AM to
2:15PM.
Sugar.......................... World Sugar No. 11.. ICE Futures U.S................ 112,000 lbs.................... 3.884 2:30AM to 2:00PM.
Unleaded Gasoline.............. Reformulated NYMEX.......................... 42,000 gallons................. 3.461 6:00PM to 5:15PM
Blendstock for Next Day.
Oxygen Blending.
Wheat (Chicago)................ Soft Wheat.......... CBOT........................... 5,000 bushels.................. 3.433 Sun-Fri: 8:00PM to
8:45 AM Next Day;
Mon-Fri: 9:30AM to
2:15PM.
Wheat (Kansas)................. Hard Red Winter KCBOT.......................... 5,000 bushels.................. 1.321 Sun-Fri: 8:00PM to
Wheat. 8:45 AM Next Day;
Mon-Fri: 9:30AM to
2:15PM.
Zinc........................... Special High Grade LME............................ 25 metric tons................. 2.519 First session:
Zinc. 7:10AM to 7:15AM,
7:50AM to 7:55AM;
second session:
10:05AM to 10:10AM,
10:45AM to 10:50AM.
--------------------------------------------------------------------------------------------------------------------------------------------------------
* ``LME'' refers to the London Metal Exchange, and ``ICE Futures U.S.'' refers to ICE Futures U.S., Inc.
** Rounded to the nearest thousandth of a percentage. May not total to 100% due to rounding.
*** Trading hours for the CME, CBOT, NYMEX and COMEX represent weekday electronic trading hours through CME Globex (electronic platform). Trading hours
for LME represent ring trading times during each of first and second sessions; excludes kerb trading times.

Calculation of the Index, DJ-UBS CI and DJ-UBS Roll Select CI
According to the Registration Statement, the level of the DJ-UBS CI
was set to be equal to 100 as of December 31, 1990. Subsequent levels
of the DJ-UBS CI are determined by multiplying the level of the DJ-UBS
CI as of the previous day by a fraction equal to (i) the weighted
average value (``WAV'') of the DJ-UBS CI as of the current day divided
by (ii) the WAV of the DJ-UBS CI as of the previous day, subject to
adjustment for roll periods as described below. The WAV of the DJ-UBS
CI on any given day is calculated by summing the products of the
settlement prices of the designated futures contracts for each
commodity multiplied by the commodity index multiplier (``CIM'') of
such designated contract.
According to the Registration Statement, the CIMs of the designated
contracts in the DJ-UBS CI are determined annually, generally on the
fourth business day of each year (the date of such determination, the
``CIM Determination Date''). On the CIM Determination Date, initial
CIMs (``ICIMs'') are calculated for each designated contract by
multiplying such designated contract's CIP by 1,000, then dividing such
product by the designated contract's settlement price as of the CIM
Determination Date. To determine the final CIM for each designated
contract for the new year, each ICIM is multiplied by an adjustment
factor, which is a fraction equal to (i) the WAV of the DJ-UBS CI as of
the CIM Determination Date, as calculated using the CIMs from the prior
year, divided by (ii) 1,000. This adjustment factor is intended to
preserve WAV continuity from one year to the next.
According to the Registration Statement, during roll periods, which
generally occur during the sixth through tenth business days of each
month, the level of the DJ-UBS CI is calculated using a blended WAV
formula that reflects the fact that the DJ-UBS CI is rolling out of
expiring contracts and into replacement contracts. The WAV associated
with the existing index components (``Old WAV'') begins weighted at
100% as of the business day preceding the roll period and decreases by
20% on each subsequent business

[[Page 29415]]

day until reduced to zero; it has no further effect on the level of the
DJ-UBS CI by the fifth business day of such roll period. The WAV
associated with the new index components (``New WAV'') begins weighted
at 0% as of the business day preceding the roll period and increases by
20% on each subsequent business day such that by the fifth business day
of such roll period, the level of the DJ-UBS CI is determined based
entirely on the New WAV.
Accordingly, during a roll period, the level of the DJ-UBS CI on
any given day can be calculated as the product of the level of the DJ-
UBS CI as of the previous day, multiplied by a fraction equal to: (i)
Old WAV x (1-0.2n) + New WAV x (0.2n), using the Old WAV and New WAV
values as of such day, divided by (ii) Old WAV x (1 -0.2n) + New WAV x
(0.2n), using the Old WAV and New WAV values as of the previous day.
The variable ``n'' in this equation represents the number of business
days that have elapsed for such roll period through and including the
relevant date of determination. According to the Registration
Statement, the DJ-UBS Roll Select CI will be calculated using the same
general methodology as the DJ-UBS CI and using the same CIPs and CIMs
used in connection with calculating the DJ-UBS CI. However, because the
roll process for the DJ-UBS Roll Select CI is different from that of
the DJ-UBS CI, its constituent futures contracts may differ from those
included in the DJ-UBS CI. This difference is expected to cause the
dollar-value weights and the weighted average value of the futures
contracts included in each index to differ over time, and, as a result,
cause the performance of the two indices to diverge.
According to the Registration Statement, the Index combines the
returns of the DJ-UBS Roll Select CI with the returns of the most
recent weekly auction high rate for three-month U.S. Treasury bills, as
reported on the Web site https://publicdebt.treas.gov/AI/OFBills under
the column headed ``Discount Rate %'' published by the Bureau of the
Public Debt of the U.S. Treasury, or any successor source. The level of
the Index, which was set at a hypothetical level of 100 as of December
31, 1990, can be calculated on any given day as the product of the
level of the Index as of the previous day, multiplied by the sum of (i)
1.00 plus (ii) the positive or negative percentage return on the DJ-UBS
Roll Select CI on such day plus (iii) the daily return based on the
auction high rate for three-month U.S. Treasury bills described above.
The Supervisory Committee and the Advisory Committee
According to the Registration Statement, the Supervisory Committee
is comprised of three members, two of whom are appointed by UBS
Securities and one of whom is appointed by S&P Dow Jones Indices, and
makes all final decisions relating to the DJ-UBS CI, taking into
consideration any advice and recommendations of the Advisory Committee.
The Advisory Committee consists of six to twelve members drawn from the
financial and academic communities. Both the Supervisory and Advisory
Committees meet annually to consider any changes to be made to the DJ-
UBS CI for the coming year. These committees may also meet at such
other times as may be necessary for the purposes of their respective
responsibilities in connection with the oversight of the DJ-UBS CI.
The Supervisory Committee has a significant degree of discretion in
exercising its supervisory duties with respect to the DJ-UBS CI and
related indices and sub-indices, including the Index and the DJ-UBS
Roll Select CI.
Additional information regarding the composition of the Index, DJ-
UBS Roll Select CI, DJ-UBS CI and their index methodologies is included
in the Registration Statement and at the Index Co-Sponsors' Web site,
www.djindexes.com.
Net Asset Value
According to the Registration Statement, the Trustee will determine
the net asset value of the Trust and the net asset value per Share
(``NAV'') as of 4:00 p.m. (Eastern Time (``E.T.'')) on each Business
Day \20\ on which the Exchange is open for regular trading, as soon as
practicable after that time.
---------------------------------------------------------------------------

\20\ A ``Business Day'' is defined as a day (1) on which none of
the following occurs: (a) the Exchange is closed for regular
trading, (b) a Futures Exchange is closed for regular trading or (c)
the Federal Reserve wire transfer system is closed for cash wire
transfers, or (2) that the Trustee determines that it is able to
conduct business.
---------------------------------------------------------------------------

According to the Registration Statement, the Trustee will value the
Trust's long positions in Index Futures on the basis of that day's
settlement prices for the Index Futures held by the Trust, as announced
by the applicable Futures Exchange. The value of the Trust's positions
in any particular Index Future will equal the product of (a) The number
of such Index Futures of such expiration owned by the Trust, (b) the
settlement price of such Index Futures on the date of calculation and
(c) the multiplier of such Index Futures.\21\ If there is no announced
settlement price for a particular Index Future contract on a Business
Day, the Trustee will use the most recently announced settlement price
unless the Trustee, in consultation with the Sponsor, determines that
such price is inappropriate as a basis for valuation. The daily
settlement prices for the Index Futures initially held by the Trust
will be established by the CME shortly after the close of trading for
such Index Futures, which is generally 2:40 p.m. E.T.
---------------------------------------------------------------------------

\21\ According to the Adviser, the multiplier reflects the
contract size for a futures contract. The multiplier for the Index
Futures is expected to be $100.
---------------------------------------------------------------------------

According to the Registration Statement, the Trustee will value all
other holdings of the Trust at (a) current market value, if quotations
for such property are readily available, or (b) fair value, as
reasonably determined by the Trustee, if the current market value
cannot be determined.
According to the Registration Statement, once the value of the
Index Futures and interest earned on the Trust's Collateral Assets has
been determined, the Trustee will subtract all accrued expenses and
liabilities of the Trust as of the time of calculation in order to
calculate the net asset value of the Trust.
According to the Registration Statement, once the net asset value
of the Trust has been calculated, the Trustee will determine the NAV by
dividing the net asset value of the Trust by the number of Shares
outstanding at the time the calculation is made. Any changes to NAV
that may result from creation and redemption activity occurring on any
Business Day will not be reflected in NAV until the following Business
Day.
Creation and Redemption of Shares
According to the Registration Statement, the Trust will create and
redeem Shares from time to time in one or more ``Baskets'' of 50,000
Shares each. Baskets may be created or redeemed only by authorized
participants.
According to the Registration Statement, Baskets will be typically
issued or redeemed only in exchange for an amount of Index Futures and
cash (or, in the discretion of the Sponsor, other Collateral Assets)
equal to the ``Basket Amount'' for the Business Day on which the
creation or redemption order is received by the Trustee.\22\ The

[[Page 29416]]

Basket Amount for a Business Day will have a per Share value equal to
the NAV as of such day, and the assets included in the Basket Amount
will be valued in the same manner and on the same basis as the Trust's
NAV calculations for its assets generally. Creation orders or
redemption requests received after 2:40 E.T. will not be deemed
received until the following Business Day. In limited circumstances and
subject to the approval of the Trustee, Baskets may be created for cash
equal to the NAV of the Shares constituting a Basket as determined on
the date the related creation order was received, plus the costs
incurred by the Trust in establishing the corresponding Index Futures
positions and acquiring the related Collateral Assets. Creation orders
for Baskets paid for solely in cash that are received after 10:00 a.m.
E.T. will be deemed received as of the following Business Day. The
Trustee will notify the authorized participants of the Basket Amount on
each Business Day.
---------------------------------------------------------------------------

\22\ The ``Basket Amount'' is the amount of Index Futures and
cash (or, in the discretion of the Sponsor, other Collateral
Assets), that an authorized participant must deliver in exchange for
one Basket, or that an authorized participant is entitled to receive
in exchange for each Basket surrendered for redemption.
---------------------------------------------------------------------------

According to the Registration Statement, creation and redemption of
interests in the Trust generally will be effected through an ``EFRP,''
which is an exchange for related positions that involve contemporaneous
transactions in futures contracts and the underlying cash commodity or
a closely related commodity. In a typical EFRP, the buyer of the
futures contract sells the underlying commodity to the seller of the
futures contract. The CME permits the execution of EFRPs consisting of
simultaneous purchases (sales) of Index Futures and sales (purchases)
of Shares. This mechanism generally is expected to be used by the Trust
in connection with the creation and redemption of Baskets.
Specifically, according to the Registration Statement, it is
anticipated that an authorized participant requesting the creation of
additional Baskets typically will transfer Index Futures and cash (or,
in the discretion of the Sponsor, other Collateral Assets) to the Trust
in return for Shares. If an EFRP is executed in connection with the
redemption of one or more Baskets, an authorized participant will
transfer to the Trust the interests being redeemed and the Trust will
transfer to the authorized participant Index Futures and cash or other
Collateral Assets. The Trust may include Index Futures with different
terms and expirations in the creation and redemption of Baskets, and
the Index Futures included in creation Baskets may differ from those
included in redemption Baskets.
It is expected that delivery of the Shares or, in the case of a
redemption, the Index Futures and cash or other Collateral Assets, will
be made against transfer of consideration or Baskets, as the case may
be, on the next Business Day following the Business Day on which the
creation order or redemption request is received by the Trustee, which
is referred to as a T+1 settlement cycle.
When a Basket is created, upon the transfer of (1) the required
consideration of Index Futures in the amounts and of the type specified
by the Trustee, cash (or, in the discretion of the Sponsor, other
Collateral Assets) in the amounts specified to the Trustee, in each
case to the accounts specified by the Trustee, and (2) any and all
transaction fees associated with creations per Basket, the Trustee will
deliver the appropriate number of Baskets to the Depository Trust
Company (``DTC'') account of the authorized participant.
According to the Registration Statement, when a Basket is redeemed,
after the delivery by the authorized participant to the Trustee's DTC
account of the total number of Shares to be redeemed by an authorized
participant, the Trustee will deliver to the order of the redeeming
authorized participant redemption proceeds consisting of Index Futures
and cash (or, in the discretion of the Sponsor, other Collateral
Assets). The assets included in the redemption proceeds will be valued
in the same manner and on the same basis as the Trust's NAV
calculations for its assets generally. In connection with a redemption
order, the redeeming authorized participant authorizes the Trustee to
deduct from the proceeds of redemption any and all transaction fees
associated with redemptions. Shares can be surrendered for redemption
only in Baskets.
The Trust will meet the initial and continued listing requirements
applicable to TIRs in NYSE Arca Equities Rule 8.200 and Commentary .02
thereto. With respect to application of Rule 10A-3 \23\ under the Act,
the Trust relies on the exception contained in Rule 10A-3(c)(7).\24\ A
minimum of 100,000 Shares of the Trust will be outstanding as of the
start of trading on the Exchange.
---------------------------------------------------------------------------

\23\ 17 CFR 240.10A-3.
\24\ 17 CFR 240.10A-3(c)(7).
---------------------------------------------------------------------------

A more detailed description of the Shares, the Trust, the Index and
the Index Futures, as well as investment risks, creation and redemption
procedures and fees is set forth in the Registration Statement.
Availability of Information Regarding the Shares
The NAV for the Shares will be disseminated to all market
participants at the same time. The Exchange will also make available on
its Web site daily trading volume of the Shares and the closing prices
of such Shares.
The intraday, closing prices and settlement prices of the Index
Futures and the futures contracts included in the Index, DJ-UBS Roll
Select CI and DJ-UBS CI are or will be readily available from the Web
sites of the relevant futures exchanges, automated quotation systems,
published or other public sources, or on-line 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. The specific
contract specifications for the Index Futures and for the underlying
futures contracts in the Index, DJ-UBS Roll Select CI and DJ-UBS CI are
also available on such Web sites, as well as other financial
informational sources. Information regarding the Collateral Assets will
be available from applicable exchanges and market data vendors.
Quotation and last sale information for the Shares will be available
via the Consolidated Tape Association (``CTA'') high-speed line.
The Sponsor's Web site, https://www.ishares.com, and/or the
Exchange's Web site, which are publicly accessible at no charge, will
contain the following information: (a) The current NAV per Share daily
and the prior business day's NAV and the reported closing price; (b)
the midpoint of the bid-ask price in relation to the NAV as of the time
the NAV is calculated (the ``Bid-Ask Price'') \25\; and (c) the
prospectus. The Trust will also disseminate Trust holdings on a daily
basis on the Trust's Web site.
---------------------------------------------------------------------------

\25\ The Bid/Ask Price will be determined using the mid-point of
the highest bid and the lowest offer on the Exchange as of the time
of calculation of the NAV. The records relating to Bid/Ask Prices
will be retained by the Trust and its service providers.
---------------------------------------------------------------------------

The Trust will provide Web site disclosure of portfolio holdings
daily and will include, as applicable, (i) the composite value of the
total portfolio, (ii) the name, quantity, price and market value of
each Index Future and Collateral Asset, and the characteristics of such
Index Futures and Collateral Assets, and (iii) the amount of cash held
in the portfolio of the Trust.

[[Page 29417]]

This Web site disclosure of the portfolio composition of the Trust
will occur at the same time as the disclosure by the Sponsor of the
portfolio composition to authorized participants so that all market
participants are provided portfolio composition information at the same
time. Therefore, the same portfolio information will be provided on the
public Web site as well as in electronic files provided to authorized
participants. Accordingly, each investor will have access to the
current portfolio composition of the Trust through the Trust's Web
site.
The Index Co-Sponsors will calculate and publish the value of the
Index, the DJ-UBS Roll Select CI and DJ-UBS CI continuously on each
business day, with such values updated at least every 15 seconds during
the Core Trading Session (from 9:30 a.m. to 4:00 p.m. E.T.) and
disseminated by S&P Dow Jones Indices to market data vendors. The
contents and percentage weighting of the Index, the DJ-UBS Roll Select
CI and DJ-UBS CI, will be available at the Index Co-Sponsors' Web site,
www.djindexes.com, and distributed to third-party data providers.
The intra-day indicative value (``IIV'') per Share of the Trust
will be based on the prior day's final NAV per Share, adjusted every 15
seconds during the Core Trading Session to reflect the continuous price
changes of the Trust's Index Futures and other holdings. The IIV per
Share will be widely disseminated by one or more major market data
vendors at least every 15 seconds during the Core Trading Session.\26\
---------------------------------------------------------------------------

\26\ Currently, it is the Exchange's understanding that several
major market data vendors display and/or make widely available IIVs
published on CTA or other data feeds. In addition, although not
likely, circumstances may arise in which the NYSE Arca Core Trading
Session is in progress, but trading in Index Futures is not
occurring. Such circumstances may result from reasons including, but
not limited to, the applicable Futures Exchange having a separate
holiday schedule than the NYSE Arca or closing prior to the close of
the NYSE Arca, price fluctuation limits being reached in an Index
Future, or the applicable Futures Exchange imposing any other
suspension or limitation on trading in an Index Future. In such
instances, the value of the applicable Index Futures held by the
Fund would be static or priced by the Fund at the applicable early
cut-off time of the Futures Exchange trading the applicable Index
Future. Moreover, any cash held by the Fund for collateralization
purposes will be invested in Collateral Assets that do not have
market exposure, such that their value would not change throughout
the trading day. As such, during such periods, the disseminated IIV
for the Fund will be static.
---------------------------------------------------------------------------

The Trustee will determine the net asset value of the Trust and the
NAV as of 4:00 p.m. E.T., on each Business Day \27\ on which the
Exchange is open for regular trading, or as soon as practicable after
that time.
---------------------------------------------------------------------------

\27\ See note 20, supra.
---------------------------------------------------------------------------

Suitability
Currently, NYSE Arca Equities Rule 9.2(a) (Diligence as to
Accounts) provides that an Equity Trading Permit (``ETP'') Holder,
before recommending a transaction in any security, must have reasonable
grounds to believe that the recommendation is suitable for the customer
based on any facts disclosed by the customer as to its other security
holdings and as to its financial situation and needs. Further, the rule
provides, with a limited exception, that prior to the execution of a
transaction recommended to a non-institutional customer, the ETP Holder
must make reasonable efforts to obtain information concerning the
customer's financial status, tax status, investment objectives, and any
other information that such ETP Holder believes would be useful to make
a recommendation.
Prior to the commencement of trading, the Exchange will inform its
ETP Holders of the suitability requirements of NYSE Arca Equities Rule
9.2(a) in an Information Bulletin (``Bulletin''). Specifically, ETP
Holders will be reminded in the Bulletin that, in recommending
transactions in these securities, they must have a reasonable basis to
believe that (1) The recommendation is suitable for a customer given
reasonable inquiry concerning the customer's investment objectives,
financial situation, needs, and any other information known by such
member, and (2) the customer can evaluate the special characteristics,
and is able to bear the financial risks, of an investment in the
Shares. In connection with the suitability obligation, the Bulletin
will also provide that members must make reasonable efforts to obtain
the following information: (1) The customer's financial status; (2) the
customer's tax status; (3) the customer's investment objectives; and
(4) such other information used or considered to be reasonable by such
member or registered representative in making recommendations to the
customer.
FINRA has issued a regulatory notice providing guidance to firms
about the supervision of complex products, as described in FINRA
Regulatory Notice 12-03 (January 2012) (``FINRA Regulatory Notice'').
While the FINRA Regulatory Notice does not provide a definition of what
constitutes a ``complex product,'' it does identify characteristics
that may make a product ``complex'' for purposes of determining whether
the product should be subject to heightened supervisory and compliance
procedures.\28\ The Fund's characteristics may raise issues similar to
those raised in the FINRA Regulatory Notice. Therefore, the Bulletin
will state that ETP Holders that carry customer accounts should follow
the FINRA Regulatory Notice with respect to suitability.
---------------------------------------------------------------------------

\28\ See FINRA Regulatory Notice, at 3-4.
---------------------------------------------------------------------------

Trading Rules
The Exchange deems the Shares to be equity securities, thus
rendering trading in the Shares subject to the Exchange's existing
rules governing the trading of equity securities. Shares will trade on
the NYSE Arca Marketplace from 4:00 a.m. to 8:00 p.m. E.T. The Exchange
has appropriate rules to facilitate transactions in the Shares during
all trading sessions. As provided in NYSE Arca Equities Rule 7.6,
Commentary .03, the minimum price variation (``MPV'') for quoting and
entry of orders in equity securities traded on the NYSE Arca
Marketplace is $0.01, with the exception of securities that are priced
less than $1.00, for which the MPV for order entry is $0.0001.
The trading of the Shares will be subject to NYSE Arca Equities
Rule 8.200, Commentary .02(e), which sets forth certain restrictions on
ETP Holders acting as registered Market Makers in TIRs to facilitate
surveillance. See ``Surveillance'' below for more information.
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 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 Index Futures, or (2) whether
other unusual conditions or circumstances detrimental to the
maintenance of a fair 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 \29\ or by the halt or suspension of trading of the
underlying futures contracts.
---------------------------------------------------------------------------

\29\ See NYSE Arca Equities Rule 7.12.
---------------------------------------------------------------------------

The Exchange may halt trading during the day in which an
interruption to the dissemination of the IIV, the Index value or the
value of the Index Futures occurs. If the interruption to the
dissemination of the IIV, the Index value or the value of the Index
Futures persists past the trading day in which it occurred, the
Exchange will halt trading no later than the beginning of the

[[Page 29418]]

trading day following an interruption. In addition, if the Exchange
becomes aware that the NAV with respect to the Shares is not
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.
Surveillance
The Exchange represents that trading in the Shares will be subject
to the existing trading surveillances, administered by the Financial
Industry Regulatory Authority (``FINRA'') on behalf of the Exchange,
which are designed to detect violations of Exchange rules and
applicable federal securities laws.\30\ The Exchange represents that
these procedures are adequate to properly monitor Exchange trading of
the Shares in all trading sessions and to deter and detect violations
of Exchange rules and applicable federal securities laws.
---------------------------------------------------------------------------

\30\ FINRA surveils trading on the Exchange pursuant to a
regulatory services agreement. The Exchange is responsible for
FINRA's performance under this regulatory services agreement.
---------------------------------------------------------------------------

The surveillances referred to above generally focus on detecting
securities trading outside their normal patterns, which could be
indicative of manipulative or other violative activity. When such
situations are detected, surveillance analysis follows and
investigations are opened, where appropriate, to review the behavior of
all relevant parties for all relevant trading violations. FINRA, on
behalf of the Exchange, will communicate as needed regarding trading in
the Shares with other markets that are members of the Intermarket
Surveillance Group (``ISG'') or with which the Exchange has in place a
comprehensive surveillance sharing agreement.\31\ The CME, CBOT, NYMEX
and ICE Futures U.S. are members of ISG, and the Exchange may obtain
market surveillance information with respect to transactions occurring
on the COMEX pursuant to the ISG memberships of CME and NYMEX. In
addition, the Exchange has entered into a comprehensive surveillance
sharing agreement with the LME that applies with respect to trading in
futures contracts currently included in the DJ-UBS CI and DJ-UBS Roll
Select CI.
---------------------------------------------------------------------------

\31\ For a list of the current members of ISG, see
www.isgportal.org. The Exchange notes that not all components of the
portfolio for the Shares may trade on markets that are members of
ISG or with which the Exchange has in place a comprehensive
surveillance sharing agreement.
---------------------------------------------------------------------------

In addition, with respect to Index Futures traded on exchanges, not
more than 10% of the weight of such Index Futures in the aggregate
shall consist of futures contracts whose principal trading market (a)
is not a member of ISG or (b) is a market with which the Exchange does
not have a comprehensive surveillance sharing agreement, provided that,
so long as the Exchange may obtain market surveillance information with
respect to transactions occurring on the COMEX pursuant to the ISG
memberships of CME and NYMEX, futures contracts whose principal trading
market is COMEX shall not be subject to the prohibition in (a), above.
The Exchange also has a general policy prohibiting the distribution
of material, non-public information by its employees.
Information Bulletin
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: (1) 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; (2) the
procedures for purchases and redemptions of Shares in Baskets (and that
Shares are not individually redeemable); (3) 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; (4) how information regarding the IIV is disseminated; (5)
that a static IIV may be disseminated, between the close of trading on
the applicable futures exchange and the close of the NYSE Arca Core
Trading Session; \32\ (6) 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 (7) trading
information.
---------------------------------------------------------------------------

\32\ See note 26, supra.
---------------------------------------------------------------------------

In addition, the Information Bulletin will advise ETP Holders,
prior to the commencement of trading, of the prospectus delivery
requirements applicable to the Trust. The Exchange notes that investors
purchasing Shares directly from the Trust will receive a prospectus.
ETP Holders purchasing Shares from the Trust for resale to investors
will deliver a prospectus to such investors. The Information Bulletin
will also discuss any exemptive, no-action and interpretive relief
granted by the Commission from any rules under the Act.
In addition, the Information Bulletin will reference that the Trust
is subject to various fees and expenses described in the Registration
Statement. The Information Bulletin will also reference that the CFTC
has regulatory jurisdiction over Index Futures traded on U.S. markets.
The Information Bulletin will also disclose the trading hours of
the Shares of the Trust and that the NAV for the Shares will be
calculated after 4:00 p.m. E.T. each trading day. The Bulletin will
disclose that information about the Shares of the Funds is publicly
available on the Trust's Web site.
2. Statutory Basis
The basis under the Act for this proposed rule change is the
requirement under Section 6(b)(5) \33\ 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.
---------------------------------------------------------------------------

\33\ 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 be listed and traded on the Exchange pursuant to the
initial and continued listing criteria in NYSE Arca Equities Rule 8.200
and Commentary .02 thereto. The Trust seeks to achieve its investment
objective by investing in Index Futures and Collateral Assets posted as
margin and held to collateralize the Trust's Index Futures positions.
The Sponsor represents that the Trust will invest in Index Futures and
Collateral Assets, in a manner consistent with the Trust's investment
objective and not to achieve additional leverage. With respect to Index
Futures traded on exchanges, not more than 10% of the weight of such
Index Futures in the aggregate shall consist of futures contracts whose
principal trading market (a) is not a member of ISG or (b) is a market
with which the Exchange does not have a comprehensive surveillance
sharing agreement, provided that, so long as the Exchange may obtain
market surveillance information with respect to transactions occurring
on the COMEX pursuant to the ISG memberships of CME and NYMEX, futures
contracts whose principal trading market is COMEX shall not be subject
to the prohibition in (a), above. The Exchange has in place
surveillance procedures that are adequate to properly monitor trading
in the Shares in all trading sessions and to deter and detect
violations of Exchange rules and applicable federal securities

[[Page 29419]]

laws. Prior to the commencement of trading, the Exchange will inform
its ETP Holders of the suitability requirements of NYSE Arca Equities
Rule 9.2(a) in a Bulletin. The Bulletin will state that ETP Holders
that carry customer accounts should follow the FINRA Regulatory Notice
with respect to suitability. The Exchange may obtain information via
ISG from other exchanges that are members of ISG or with which the
Exchange has entered into a comprehensive surveillance sharing
agreement. The Adviser is not a broker-dealer but is affiliated with a
broker-dealer and has implemented a firewall with respect to such
broker-dealer affiliate as well as procedures designed to prevent the
use and dissemination of material non-public information regarding the
assets of the Trust. UBS Securities has implemented a fire wall with
respect to its personnel regarding access to information concerning the
composition and/or changes to the Index, DJ-UBS CI and DJ-UBS Roll
Select CI and the calculation of the values of the foregoing indexes,
and will be subject to procedures designed to prevent the use and
dissemination of material non-public information regarding the Index,
DJ-UBS CI and DJ-UBS Roll Select CI. The Index Co-Sponsors have
implemented and maintain procedures designed to prevent the use and
dissemination of material non-public information regarding the DJ-UBS
Roll Select CI, the DJ-UBS CI and the Index. The Supervisory Committee
and the Advisory Committee are subject to procedures designed to
prevent the use and dissemination of material, non-public information
regarding the Index, DJ-UBS Roll Select CI and DJ-UBS CI.
Trading may be halted because of market conditions or for reasons
that, in the view of the Exchange, make trading in the Shares
inadvisable. These may include: (1) The extent to which trading is not
occurring in the Index Futures, or (2) whether other unusual conditions
or circumstances detrimental to the maintenance of a fair and orderly
market are present. 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 of the
Designated Contracts. The Exchange represents that the Exchange may
halt trading during the day in which the interruption to the
dissemination of the IIV, the Index value or the value of the Index
Futures occurs. If the interruption to the dissemination of the IIV,
the Index value or the value of the Index Futures persists past the
trading day in which it occurred, the Exchange will halt trading no
later than the beginning of the trading day following an interruption.
In addition, if the Exchange becomes aware that the NAV with respect to
the Shares is not 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.
The proposed rule change is designed to promote just and equitable
principles of trade and to protect investors and the public interest in
that a large amount of information is publicly available regarding the
Trust and the Shares, thereby promoting market transparency. The NAV
for the Shares will be disseminated to all market participants at the
same time. The IIV per Share will be widely disseminated by one or more
major market data vendors at least every 15 seconds during the Core
Trading Session. Trading in Shares of the Trust will be halted if the
circuit breaker parameters in NYSE Arca Equities Rule 7.12 have been
reached or because of market conditions or for reasons that, in the
view of the Exchange, make trading in the Shares inadvisable. Moreover,
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. The Trust will provide Web
site disclosure of portfolio holdings daily and will include, as
applicable, (i) the composite value of the total portfolio, (ii) the
name, quantity, price and market value of each Index Future and
Collateral Asset, and the characteristics of such Index Futures and
Collateral Assets, and (iii) the amount of cash held in the portfolio
of the Trust. The value of the Index, DJ-UBS Roll Select CI and DJ-UBS
CI will be widely disseminated by one or more major market data vendors
at least every 15 seconds during the Core Trading Session. The
intraday, closing prices and settlement prices of the Index Futures and
the futures contracts included in the Index, DJ-UBS Roll Select CI and
DJ-UBS CI are or will be readily available from the Web sites of the
relevant futures exchanges, automated quotation systems, published or
other public sources, or on-line information services such as Bloomberg
or Reuters. The contents and percentage weighting of the Index, the DJ-
UBS Roll Select CI and DJ-UBS CI, will be available at the Index Co-
Sponsors' Web site, www.djindexes.com, and distributed to third-party
data providers. The Exchange will also make available on its Web site
daily trading volume of each of the Shares and the closing prices of
such Shares. The prices of the Index Futures and Collateral Assets will
be available from the applicable exchanges and market data vendors.
The proposed rule change is designed to perfect the mechanism of a
free and open market and, in general, to protect investors and the
public interest in that it will facilitate the listing and trading of
an additional type of exchange-traded product that will enhance
competition among market participants, to the benefit of investors and
the marketplace. As noted above, the Exchange has in place surveillance
procedures relating to trading in the Shares and may obtain information
via ISG from other exchanges that are members of ISG or with which the
Exchange has entered into a comprehensive surveillance sharing
agreement. In addition, as noted above, investors will have ready
access to information regarding the Trust's holdings, IIV, and
quotation and last sale information for the Shares.

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

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

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

Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the 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.

[[Page 29420]]

IV. Solicitation of Comments

Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change, as modified by Amendment No. 1 thereto, 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-2013-48 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-2013-48. 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 will also 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 No. SR-NYSEArca-2013-48 and should be
submitted on or before June 10, 2013.

For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\34\
---------------------------------------------------------------------------

\34\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-11897 Filed 5-17-13; 8:45 am]
BILLING CODE 8011-01-P

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