Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Investments in Leveraged Loans by the Peritus High Yield ETF, 54715-54718 [2013-21535]
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Federal Register / Vol. 78, No. 172 / Thursday, September 5, 2013 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–21534 Filed 9–4–13; 8:45 am]
BILLING CODE 8011–01–P
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.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–70284; File No. SR–
NYSEArca–2013–83]
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to Investments
in Leveraged Loans by the Peritus
High Yield ETF
August 29, 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 August
21, 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 and II 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.
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I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to reflect a
change to the holdings of the Peritus
High Yield ETF to achieve its
investment objective to include
leveraged loans. Peritus High Yield ETF
is currently listed and traded on the
Exchange under NYSE Arca Equities
Rule 8.600. The text of the proposed
rule change is available on the
Exchange’s Web site at www.nyse.com,
at the principal office of the Exchange,
and at the Commission’s Public
Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
11 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
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The Commission has approved listing
and trading of shares (‘‘Shares’’) of the
Peritus High Yield ETF (‘‘Fund’’) on the
Exchange under NYSE Arca Equities
Rule 8.600) 4 (‘‘Managed Fund
Shares’’).5 The Shares are offered by
AdvisorShares Trust (the ‘‘Trust’’), a
statutory trust organized under the laws
of the State of Delaware and registered
with the Commission as an open-end
management investment company.6
Peritus High Yield ETF is currently
listed and traded on the Exchange under
NYSE Arca Equities Rule 8.600.
4 See Securities Exchange Act Release No. 63329
(November 17, 2010), 75 FR 71760 (November 24,
2010) (SR–NYSEArca–2010–86) (‘‘Prior Order’’).
The notice of filing of SR–NYSEArca–2010–86 was
published in Securities Exchange Act Release No.
63041 (October 5, 2010), 75 FR 62905 (October 13,
2010) (‘‘First Prior Notice’’). In addition, the
exchange filed a proposed rule change to reflect a
change to the Fund’s holdings to achieve its
investment objective to include equity securities.
See Securities Exchange Act Release No. 66818
(April 17, 2012), 77 FR 24233 (April 23, 2012) (SR–
NYSEArca–2012–33) (notice of filing and
immediate effectiveness of proposed rule change
(‘‘Second Prior Notice’’ and, together with the First
Prior Notice and the Prior Order, the ‘‘Prior
Release’’)). The Fund and the Shares are currently
in compliance with the listing standards and other
rules of the Exchange and the requirements set forth
in the Prior Release.
5 A Managed Fund Share is a security that
represents an interest in an investment company
registered under the Investment Company Act of
1940 (15 U.S.C. 80a–1) (‘‘1940 Act’’) organized as
an open-end investment company or similar entity
that invests in a portfolio of securities selected by
its investment advisor consistent with its
investment objectives and policies. In contrast, an
open-end investment company that issues
Investment Company Units, listed and traded on
the Exchange under NYSE Arca Equities Rule
5.2(j)(3), seeks to provide investment results that
correspond generally to the price and yield
performance of a specific foreign or domestic stock
index, fixed income securities index or combination
thereof.
6 The Trust is registered under the 1940 Act. On
October 29, 2012, the Trust filed with the
Commission an amendment to its registration
statement on Form N–1A under the Securities Act
of 1933 (15 U.S.C. 77a) and the 1940 Act relating
to the Fund (File Nos. 333–157876 and 811–22110)
(the ‘‘Registration Statement’’). The description of
the operation of the Trust and the Fund herein is
based, in part, on the Registration Statement. In
addition, the Commission has issued an order
granting certain exemptive relief to the Trust under
the1940 Act. See Investment Company Act Release
No. 29291 (May 28, 2010) (File No. 812–13677).
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The investment adviser to the Fund is
AdvisorShares Investments, LLC (the
‘‘Adviser’’). Peritus I Asset Management,
LLC is the Fund’s sub-adviser (‘‘Peritus’’
or the ‘‘Sub-Adviser’’).
According to the Registration
Statement and as stated in the Prior
Release, the Fund’s investment objective
is to achieve high current income with
a secondary goal of capital appreciation.
The Exchange proposes to reflect a
change to the holdings of the Fund to
achieve its investment objective to
include up to 20% of its net assets in
‘‘leveraged loans’’, in addition to the
other permitted investments set forth in
the Prior Release.7 The Adviser
represents that the investment objective
of the Fund will not be changing.
Leveraged loans will include loans
referred to as senior loans, bank loans
and/or floating rate loans. The Fund
will invest in such leveraged loans that
the Adviser or Sub-Adviser deems to be
highly liquid with readily available
prices. The Fund will invest in
leveraged loans rated C or higher by a
credit rating agency registered as a
nationally recognized statistical rating
organization (‘‘NRSRO’’) with the
Commission (for example, Moody’s
Investors Service, Inc.), or is unrated but
considered to be of comparable quality
by the Adviser or Sub-Adviser.8 The
Fund will not invest in leveraged loans
that are in default at time of purchase.
The Fund will only invest in U.S.
dollar-denominated leveraged loans. In
addition, for investment purposes, the
leveraged loan must have a par amount
outstanding of U.S. $150 million or
greater at the time the loan is originally
issued.9
Leveraged loans are borrowings by
non-investment grade companies (i.e.,
loans rated below Ba1 by Moody’s
7 The change to the Fund’s holdings to include
leveraged loans will be effective upon filing with
the Commission of an amendment to the Trust’s
Registration Statement and upon the effectiveness
and operativeness of this proposal.
8 In determining whether a security is of
‘‘comparable quality,’’ the Adviser or Sub-Adviser
will consider, for example, whether the borrower of
the security has issued other rated securities;
whether the obligations under the security are
guaranteed by another entity and the rating of such
guarantor (if any); whether and (if applicable) how
the security is collateralized; other forms of credit
enhancement (if any); the security’s maturity date;
liquidity features (if any); relevant cash flow(s);
valuation features; other structural analysis;
macroeconomic analysis; and sector or industry
analysis.
9 The Commission previously has approved
listing and trading on NYSE Arca of an issue of
Managed Fund Shares that primarily holds senior
loans that include leveraged loans. See Securities
Exchange Act Release No. 69244 (March 27, 2013),
78 FR 19766 (April 2, 2013) (SR–NYSEArca–2013–
08) (order approving listing and trading of SPDR
Blackstone/GSO Senior Loan ETF under NYSE Arca
Equities Rule 8.600).
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Federal Register / Vol. 78, No. 172 / Thursday, September 5, 2013 / Notices
Investor Service and BBB+ by Standard
& Poor’s or are non-rated). The word
‘‘leveraged’’ refers to the credit quality
of the borrower—a non-investment
grade company—not to any sort of use
of leverage or margin within the loan
structure. These are debt obligations
that are structured between the
borrower and the lender or lender
group. The terms of the loan are
negotiated up front and defined in the
credit agreement. Just as high yield
bonds have indentures that govern the
terms of the debt obligation, leveraged
loans have credit agreements that
specify the terms, including maturity,
prepayment obligations, financial
covenants, and security. The terms of
the loan can be restructured throughout
the life of the loan via an amendment
process that requires a certain
percentage of holder approval. Once
issued, various pieces of the loan often
trade in an active secondary market.
The four basic features of leveraged
loans are as follows:
1. Seniority in the Capital Structure:
Leveraged loans are generally among the
most senior debt obligations in the
borrower’s capital structures and, as
such, would generally have first priority
in payment.
2. Security Backing: Leveraged loans
are generally secured by the borrower’s
assets and operations. This usually
includes both the physical assets as well
as other assets of the company. In the
case of a default, the loan holder would
have a claim to those assets.
3. Covenant Protection: Pursuant to
the credit agreement governing the loan,
loan holders are usually protected by a
variety of covenants. These covenants
can include a maximum leverage test,
minimum interest coverage test, a
restricted payments basket potentially
limiting payments for subordinate
obligations and dividends, and/or
prepayment criteria. The covenants
governing leveraged loans are generally
more restrictive than those governing
high yield bonds, providing the loan
holder with added protections.
4. Floating Rate Interest Payments:
These loans generally pay interest with
3 month LIBOR as the base rate. The
structure is usually a specified spread
over the floating LIBOR rate. However,
in some cases a LIBOR floor or ceiling
may be specified.
As stated in the Prior Release, the
Fund will not invest in options
contracts, futures contracts or swap
agreements. The Fund’s investments
will be consistent with its investment
objective and will not be used to
enhance leverage.
As stated in the Prior Release, on each
business day, before commencement of
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trading in Shares in the Core Trading
Session on the Exchange, the Fund
discloses on its Web site the Disclosed
Portfolio that will include, among other
portfolio components, leveraged loans,
and that will form the basis for the
Fund’s calculation of net asset value
(‘‘NAV’’) at the end of the business day.
The intra-day, closing and settlement
prices of the portfolio securities,
including any leveraged loans held by
the Fund, will also be readily available
from the national securities exchanges
trading such securities, automated
quotation systems, published or other
public sources, or on-line information
services.
In calculating the Fund’s NAV per
Share, the Fund’s investments will
generally be valued using market
valuations.10 A market valuation
generally means a valuation (i) obtained
from an exchange, a pricing service, or
a major market maker (or dealer), (ii)
based on a price quotation or other
equivalent indication of value supplied
by an exchange, a pricing service, or a
major market maker (or dealer) or (iii)
based on amortized cost.11 The Adviser
may use various pricing services, or
discontinue the use of any pricing
service, as approved by the Trust’s
Board of Trustees from time to time. A
price for leveraged loans obtained from
a pricing service based on such pricing
service’s valuation matrix may be
considered a market valuation.
Valuations with respect to leveraged
loans will be based on information
supplied by pricing services or major
market makers or dealers, as indicated
in (i) and (ii) above. Any assets or
liabilities denominated in currencies
other than the U.S. dollar will be
converted into U.S. dollars at the
current market rates on the date of
valuation as quoted by one or more
sources.
In the event that current market
valuations are not readily available or
such valuations do not reflect current
market value, the Trust’s procedures
require that a security’s fair value be
determined if a market price is not
readily available.12 In determining such
10 Markit will be the primary price source for
leveraged loans in calculating the NAV of the
Fund’s portfolio.
11 For market valuation purposes, amortized cost
will only apply to securities that have a remaining
maturity of 60 days or less.
12 The Trust’s Board of Trustees has established
Fair Value Procedures responsible for the valuation
and revaluation of any portfolio investments for
which market quotations or prices are not readily
available. The Fund has implemented procedures
designed to prevent the use and dissemination of
material, non-public information regarding
valuation and revaluation of any portfolio
investments.
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value the Adviser or Sub-Adviser may
consider, among other things, (i) Price
comparisons among multiple sources,
(ii) a review of corporate actions and
news events, and (iii) a review of
relevant financial indicators (e.g.,
movement in interest rates, market
indices, and prices from the Fund’s
index providers). In these cases, the
Fund’s NAV may reflect certain
portfolio securities’ fair values rather
than their market prices. Fair value
pricing involves subjective judgments
and it is possible that the fair value
determination for a security is
materially different than the value that
could be realized upon the sale of the
security.
All representations made in the Prior
Release regarding the availability of
information relating to the Shares,
trading halts, trading rules, the Portfolio
Indicative Value, and surveillance,
among others, will continue to apply to
trading in the Shares.
Except for the changes noted above,
all other representations made in the
Prior Release remain unchanged.13 The
Fund will continue to comply with all
initial and continued listing
requirements under NYSE Arca Equities
Rule 8.600.
2. Statutory Basis
The basis under the Act for this
proposed rule change is the requirement
under Section 6(b)(5) 14 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 8.600. The Fund may invest up to
20% of its net assets in leveraged loans,
in addition to the other permitted
investments set forth in the Prior
Release. The Fund will invest in such
leveraged loans that the Adviser or SubAdviser deems to be highly liquid with
readily available prices. The Fund will
invest in leveraged loans rated C or
higher by an NRSRO or is unrated but
considered to be of comparable quality
by the Adviser or Sub-Adviser. The
Fund will not invest in leveraged loans
that are in default at time of purchase.
13 See
14 15
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note 4, supra.
U.S.C. 78f(b)(5).
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The Fund will only invest in U.S.
dollar-denominated leveraged loans. In
addition, for investment purposes, the
leveraged loan must have a par amount
outstanding of U.S. $150 million or
greater at the time the loan is originally
issued. The Adviser represents that the
investment objective of the Fund will
not be changing.
The proposed rule change is designed
to promote just and equitable principles
of trade and to protect investors and the
public interest in that the net asset value
(‘‘NAV’’) per Share is calculated daily
and that the NAV and the Disclosed
Portfolio is made available to all market
participants at the same time. The intraday, closing and settlement prices of the
portfolio securities, including any
leveraged loans held by the Fund, will
also be readily available from the
national securities exchanges trading
such securities, automated quotation
systems, published or other public
sources, or on-line information services.
The Portfolio Indicative Value, as
defined in NYSE Arca Equities Rule
8.600 (c)(3), is disseminated by one or
more major market data vendors at least
every 15 seconds during the Exchange’s
Core Trading Session. On each business
day, before commencement of trading in
Shares in the Core Trading Session on
the Exchange, the Fund discloses on its
Web site the Disclosed Portfolio that
will form the basis for the Fund’s
calculation of NAV at the end of the
business day. Information regarding
market price and trading volume of the
Shares is and will be continually
available on a real-time basis throughout
the day on brokers’ computer screens
and other electronic services, and
quotation and last-sale information is
available via the Consolidated Tape
Association high-speed line. Trading in
Shares of the Fund 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. Trading in the Shares is
subject to NYSE Arca Equities Rule
8.600(d)(2)(D), which sets forth
circumstances under which Shares of
the Fund may be halted. The Web site
for the Fund includes a form of the
prospectus for the Fund and additional
data relating to NAV and other
applicable quantitative information. In
addition, as stated in the Prior Release,
investors have ready access to
information regarding the Fund’s
holdings, the Portfolio Indicative Value,
the Disclosed Portfolio, and quotation
and last-sale information for the Shares.
The proposed rule change is designed
to perfect the mechanism of a free and
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open market and, in general, to protect
investors and the public interest. As
noted in the Prior Release, the Exchange
has in place surveillance procedures
relating to trading in the Shares and
may obtain information via the
Intermarket Surveillance Group (‘‘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 stated in the Prior Notice,
investors have ready access to
information regarding the Fund’s
holdings, the Portfolio Indicative Value,
the Disclosed Portfolio, and quotation
and last-sale information for the Shares.
As noted above, the Fund may invest up
to 20% of its net assets in only highly
liquid leveraged loans with readily
available prices. The Fund will invest in
leveraged loans rated C or higher by an
NRSRO or is unrated but considered to
be of comparable quality by the Adviser
or Sub-Adviser. The Fund will not
invest in leveraged loans that are in
default at time of purchase. The Fund
will only invest in U.S. dollardenominated leveraged loans. In
addition, for investment purposes, the
leveraged loan must have a par amount
outstanding of U.S. $150 million or
greater at the time the loan is originally
issued.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purpose of the Act. The Exchange
believes that the proposed rule change,
in permitting the Fund to utilize
leveraged loans as part of its portfolio to
achieve its investment objective, will
enhance competition among issues of
Managed Fund Shares that invest in
leveraged loans.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the proposed rule change
does not: (i) Significantly affect the
protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative prior to 30 days from the date
on which it was filed, or such shorter
time as the Commission may designate,
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54717
if consistent with the protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act15 and Rule 19b–4(f)(6)
thereunder.16
A proposed rule change filed under
Rule 19b–4(f)(6) 17 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b4(f)(6)(iii),18 the Commission
may designate a shorter time if such
action is consistent with the protection
of investors and the public interest. The
Exchange has asked the Commission to
waive the 30-day operative delay so that
the proposal may become operative
immediately upon filing. The
Commission notes that waiver of the
operative delay would permit the Fund
to invest immediately in leveraged loans
that the Sub-Adviser believes will
further the Fund’s investment objective
to achieve high current income with a
secondary goal of capital appreciation.
Under the proposal, the Fund’s
investments in leveraged loans would
be limited to 20% of its net assets. The
Exchange states that the Fund will not
invest in leveraged loans that are in
default at time of purchase and that the
Fund will only invest in U.S. dollardenominated leveraged loans. In
addition, for investment purposes, each
leveraged loan must have a par amount
outstanding of U.S. $150 million or
greater at the time the loan is originally
issued. The Commission notes that it
has approved the listing and trading of
shares of another exchange-traded fund
that principally invests in similar
leveraged loans.19 The Exchange
represents that the Fund’s investment
objective is not changing, all other
representations made in the Prior
Release remain unchanged, and the
Fund will continue to comply with all
of the listing requirements under NYSE
Arca Equities Rule 8.600. For the
foregoing reasons, the Commission
believes that the proposed change does
not raise novel or unique regulatory
issues and is consistent with the
protection of investors and the public
interest. Therefore, the Commission
waives the 30-day operative delay
requirement and designates the
15 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b4(f)(6)(iii) requires a self-regulatory organization to
give the Commission written notice of its intent to
file the proposed rule change, along with a brief
description and text of the proposed rule change,
at least five business days prior to the date of filing
of the proposed rule change, or such shorter time
as designated by the Commission. The Exchange
has satisfied this requirement.
17 Id.
18 17 CFR 240.19b–4(f)(6)(iii).
19 See note 9, supra.
16 17
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Federal Register / Vol. 78, No. 172 / Thursday, September 5, 2013 / Notices
proposed rule change as operative upon
filing.20
At any time within 60 days of the
filing of such proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
NYSEArca–2013–83 on the subject line.
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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–2013–83. 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
20 For
purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
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business days between the hours of
10:00 a.m. and 3:00 p.m.. Copies of the
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File No. SR–NYSEArca–
2013–83 and should be submitted on or
before September 26, 2013.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.21
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–21535 Filed 9–4–13; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–70281; File No. SR–ICEEU–
2013–10]
Self-Regulatory Organizations; ICE
Clear Europe Limited; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change Related to
Regulatory Reporting of Swap Data
August 29, 2013.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on August
20, 2013, ICE Clear Europe Limited
(‘‘ICE Clear Europe’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change described in Items I and II
below, which Items have been prepared
primarily by ICE Clear Europe. ICE Clear
Europe filed the proposal pursuant to
Section 19(b)(3)(A)(iii) 3 of the Act and
Rule 19b–4(f)(4)(ii) 4 thereunder so that
the proposal was effective upon filing
with the Commission. The Commission
is publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
ICE Clear Europe submits the
proposed amendment to its clearing
rules in order to add Rule 411 which
facilitates swap data repository (‘‘SDR’’)
reporting by and at ICE Clear Europe
that is consistent with Part 45 of
Commodity Futures Trading
Commission (‘‘CFTC’’) Rules and
Regulations. Proposed Rule 411
provides that ICE Clear Europe will
report creation and continuation data to
ICE Trade Vault, LLC (‘‘ICE Trade
Vault’’), a provisionally registered SDR
selected by ICE Clear Europe.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, ICE
Clear Europe 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. ICE
Clear Europe has prepared summaries,
set forth in sections A, B and C below,
of the most significant aspects of these
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
The proposed rule amendment
includes proposed Rule 411, which
provides that with respect to all swaps
cleared by ICE Clear Europe and
resulting positions, ICE Clear Europe
will report creation and continuation
data to ICE Trade Vault for purposes of
complying with applicable CFTC rules
and regulations governing the regulatory
reporting of swaps, specifically CFTC
Regulations 45.3,5 45.4(b) 6 and 45.9.7
Proposed Rule 411 is consistent with
CFTC Regulations 45.3 8 and 45.4(b) 9
that require that creation and
continuation data must be reported by
both the derivatives clearing
organization and the reporting
counterparty. ICE Clear Europe
currently complies with CFTC
Regulations 45.3 10 and 45.4(b) 11 by
reporting swap data to ICE Trade Vault.
In order to codify ICE Clear Europe’s
practice of reporting relevant Part 45
data to ICE Trade Vault, ICE Clear
Europe proposed to add to its Clearing
Rules, Rule 411 (Swap Data Repository
‘‘SDR’’ Reporting).
Proposed Rule 411 further provides
that upon the request of a clearing
member counterparty to a swap cleared
at ICE Clear Europe, ICE Clear Europe
5 17
CFR 45.3.
CFR 45.4(b).
7 17 CFR 45.9.
8 17 CFR 45.3.
9 17 CFR 45.4(b).
10 17 CFR 45.3.
11 17 CFR 45.4(b).
6 17
21 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b–4(f)(4)(ii).
1 15
PO 00000
Frm 00102
Fmt 4703
Sfmt 4703
E:\FR\FM\05SEN1.SGM
05SEN1
Agencies
[Federal Register Volume 78, Number 172 (Thursday, September 5, 2013)]
[Notices]
[Pages 54715-54718]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-21535]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-70284; File No. SR-NYSEArca-2013-83]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Relating to
Investments in Leveraged Loans by the Peritus High Yield ETF
August 29, 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 August 21, 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 and II
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.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to reflect a change to the holdings of the
Peritus High Yield ETF to achieve its investment objective to include
leveraged loans. Peritus High Yield ETF is currently listed and traded
on the Exchange under NYSE Arca Equities Rule 8.600. The text of the
proposed rule change is available on the Exchange's Web site at
www.nyse.com, at the principal office of the Exchange, and at the
Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Commission has approved listing and trading of shares
(``Shares'') of the Peritus High Yield ETF (``Fund'') on the Exchange
under NYSE Arca Equities Rule 8.600) \4\ (``Managed Fund Shares'').\5\
The Shares are offered by AdvisorShares Trust (the ``Trust''), a
statutory trust organized under the laws of the State of Delaware and
registered with the Commission as an open-end management investment
company.\6\ Peritus High Yield ETF is currently listed and traded on
the Exchange under NYSE Arca Equities Rule 8.600.
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\4\ See Securities Exchange Act Release No. 63329 (November 17,
2010), 75 FR 71760 (November 24, 2010) (SR-NYSEArca-2010-86)
(``Prior Order''). The notice of filing of SR-NYSEArca-2010-86 was
published in Securities Exchange Act Release No. 63041 (October 5,
2010), 75 FR 62905 (October 13, 2010) (``First Prior Notice''). In
addition, the exchange filed a proposed rule change to reflect a
change to the Fund's holdings to achieve its investment objective to
include equity securities. See Securities Exchange Act Release No.
66818 (April 17, 2012), 77 FR 24233 (April 23, 2012) (SR-NYSEArca-
2012-33) (notice of filing and immediate effectiveness of proposed
rule change (``Second Prior Notice'' and, together with the First
Prior Notice and the Prior Order, the ``Prior Release'')). The Fund
and the Shares are currently in compliance with the listing
standards and other rules of the Exchange and the requirements set
forth in the Prior Release.
\5\ A Managed Fund Share is a security that represents an
interest in an investment company registered under the Investment
Company Act of 1940 (15 U.S.C. 80a-1) (``1940 Act'') organized as an
open-end investment company or similar entity that invests in a
portfolio of securities selected by its investment advisor
consistent with its investment objectives and policies. In contrast,
an open-end investment company that issues Investment Company Units,
listed and traded on the Exchange under NYSE Arca Equities Rule
5.2(j)(3), seeks to provide investment results that correspond
generally to the price and yield performance of a specific foreign
or domestic stock index, fixed income securities index or
combination thereof.
\6\ The Trust is registered under the 1940 Act. On October 29,
2012, the Trust filed with the Commission an amendment to its
registration statement on Form N-1A under the Securities Act of 1933
(15 U.S.C. 77a) and the 1940 Act relating to the Fund (File Nos.
333-157876 and 811-22110) (the ``Registration Statement''). The
description of the operation of the Trust and the Fund herein is
based, in part, on the Registration Statement. In addition, the
Commission has issued an order granting certain exemptive relief to
the Trust under the1940 Act. See Investment Company Act Release No.
29291 (May 28, 2010) (File No. 812-13677).
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The investment adviser to the Fund is AdvisorShares Investments,
LLC (the ``Adviser''). Peritus I Asset Management, LLC is the Fund's
sub-adviser (``Peritus'' or the ``Sub-Adviser'').
According to the Registration Statement and as stated in the Prior
Release, the Fund's investment objective is to achieve high current
income with a secondary goal of capital appreciation. The Exchange
proposes to reflect a change to the holdings of the Fund to achieve its
investment objective to include up to 20% of its net assets in
``leveraged loans'', in addition to the other permitted investments set
forth in the Prior Release.\7\ The Adviser represents that the
investment objective of the Fund will not be changing.
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\7\ The change to the Fund's holdings to include leveraged loans
will be effective upon filing with the Commission of an amendment to
the Trust's Registration Statement and upon the effectiveness and
operativeness of this proposal.
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Leveraged loans will include loans referred to as senior loans,
bank loans and/or floating rate loans. The Fund will invest in such
leveraged loans that the Adviser or Sub-Adviser deems to be highly
liquid with readily available prices. The Fund will invest in leveraged
loans rated C or higher by a credit rating agency registered as a
nationally recognized statistical rating organization (``NRSRO'') with
the Commission (for example, Moody's Investors Service, Inc.), or is
unrated but considered to be of comparable quality by the Adviser or
Sub-Adviser.\8\ The Fund will not invest in leveraged loans that are in
default at time of purchase. The Fund will only invest in U.S. dollar-
denominated leveraged loans. In addition, for investment purposes, the
leveraged loan must have a par amount outstanding of U.S. $150 million
or greater at the time the loan is originally issued.\9\
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\8\ In determining whether a security is of ``comparable
quality,'' the Adviser or Sub-Adviser will consider, for example,
whether the borrower of the security has issued other rated
securities; whether the obligations under the security are
guaranteed by another entity and the rating of such guarantor (if
any); whether and (if applicable) how the security is
collateralized; other forms of credit enhancement (if any); the
security's maturity date; liquidity features (if any); relevant cash
flow(s); valuation features; other structural analysis;
macroeconomic analysis; and sector or industry analysis.
\9\ The Commission previously has approved listing and trading
on NYSE Arca of an issue of Managed Fund Shares that primarily holds
senior loans that include leveraged loans. See Securities Exchange
Act Release No. 69244 (March 27, 2013), 78 FR 19766 (April 2, 2013)
(SR-NYSEArca-2013-08) (order approving listing and trading of SPDR
Blackstone/GSO Senior Loan ETF under NYSE Arca Equities Rule 8.600).
---------------------------------------------------------------------------
Leveraged loans are borrowings by non-investment grade companies
(i.e., loans rated below Ba1 by Moody's
[[Page 54716]]
Investor Service and BBB+ by Standard & Poor's or are non-rated). The
word ``leveraged'' refers to the credit quality of the borrower--a non-
investment grade company--not to any sort of use of leverage or margin
within the loan structure. These are debt obligations that are
structured between the borrower and the lender or lender group. The
terms of the loan are negotiated up front and defined in the credit
agreement. Just as high yield bonds have indentures that govern the
terms of the debt obligation, leveraged loans have credit agreements
that specify the terms, including maturity, prepayment obligations,
financial covenants, and security. The terms of the loan can be
restructured throughout the life of the loan via an amendment process
that requires a certain percentage of holder approval. Once issued,
various pieces of the loan often trade in an active secondary market.
The four basic features of leveraged loans are as follows:
1. Seniority in the Capital Structure: Leveraged loans are
generally among the most senior debt obligations in the borrower's
capital structures and, as such, would generally have first priority in
payment.
2. Security Backing: Leveraged loans are generally secured by the
borrower's assets and operations. This usually includes both the
physical assets as well as other assets of the company. In the case of
a default, the loan holder would have a claim to those assets.
3. Covenant Protection: Pursuant to the credit agreement governing
the loan, loan holders are usually protected by a variety of covenants.
These covenants can include a maximum leverage test, minimum interest
coverage test, a restricted payments basket potentially limiting
payments for subordinate obligations and dividends, and/or prepayment
criteria. The covenants governing leveraged loans are generally more
restrictive than those governing high yield bonds, providing the loan
holder with added protections.
4. Floating Rate Interest Payments: These loans generally pay
interest with 3 month LIBOR as the base rate. The structure is usually
a specified spread over the floating LIBOR rate. However, in some cases
a LIBOR floor or ceiling may be specified.
As stated in the Prior Release, the Fund will not invest in options
contracts, futures contracts or swap agreements. The Fund's investments
will be consistent with its investment objective and will not be used
to enhance leverage.
As stated in the Prior Release, on each business day, before
commencement of trading in Shares in the Core Trading Session on the
Exchange, the Fund discloses on its Web site the Disclosed Portfolio
that will include, among other portfolio components, leveraged loans,
and that will form the basis for the Fund's calculation of net asset
value (``NAV'') at the end of the business day. The intra-day, closing
and settlement prices of the portfolio securities, including any
leveraged loans held by the Fund, will also be readily available from
the national securities exchanges trading such securities, automated
quotation systems, published or other public sources, or on-line
information services.
In calculating the Fund's NAV per Share, the Fund's investments
will generally be valued using market valuations.\10\ A market
valuation generally means a valuation (i) obtained from an exchange, a
pricing service, or a major market maker (or dealer), (ii) based on a
price quotation or other equivalent indication of value supplied by an
exchange, a pricing service, or a major market maker (or dealer) or
(iii) based on amortized cost.\11\ The Adviser may use various pricing
services, or discontinue the use of any pricing service, as approved by
the Trust's Board of Trustees from time to time. A price for leveraged
loans obtained from a pricing service based on such pricing service's
valuation matrix may be considered a market valuation. Valuations with
respect to leveraged loans will be based on information supplied by
pricing services or major market makers or dealers, as indicated in (i)
and (ii) above. Any assets or liabilities denominated in currencies
other than the U.S. dollar will be converted into U.S. dollars at the
current market rates on the date of valuation as quoted by one or more
sources.
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\10\ Markit will be the primary price source for leveraged loans
in calculating the NAV of the Fund's portfolio.
\11\ For market valuation purposes, amortized cost will only
apply to securities that have a remaining maturity of 60 days or
less.
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In the event that current market valuations are not readily
available or such valuations do not reflect current market value, the
Trust's procedures require that a security's fair value be determined
if a market price is not readily available.\12\ In determining such
value the Adviser or Sub-Adviser may consider, among other things, (i)
Price comparisons among multiple sources, (ii) a review of corporate
actions and news events, and (iii) a review of relevant financial
indicators (e.g., movement in interest rates, market indices, and
prices from the Fund's index providers). In these cases, the Fund's NAV
may reflect certain portfolio securities' fair values rather than their
market prices. Fair value pricing involves subjective judgments and it
is possible that the fair value determination for a security is
materially different than the value that could be realized upon the
sale of the security.
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\12\ The Trust's Board of Trustees has established Fair Value
Procedures responsible for the valuation and revaluation of any
portfolio investments for which market quotations or prices are not
readily available. The Fund has implemented procedures designed to
prevent the use and dissemination of material, non-public
information regarding valuation and revaluation of any portfolio
investments.
---------------------------------------------------------------------------
All representations made in the Prior Release regarding the
availability of information relating to the Shares, trading halts,
trading rules, the Portfolio Indicative Value, and surveillance, among
others, will continue to apply to trading in the Shares.
Except for the changes noted above, all other representations made
in the Prior Release remain unchanged.\13\ The Fund will continue to
comply with all initial and continued listing requirements under NYSE
Arca Equities Rule 8.600.
---------------------------------------------------------------------------
\13\ See note 4, supra.
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2. Statutory Basis
The basis under the Act for this proposed rule change is the
requirement under Section 6(b)(5) \14\ 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.
---------------------------------------------------------------------------
\14\ 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
8.600. The Fund may invest up to 20% of its net assets in leveraged
loans, in addition to the other permitted investments set forth in the
Prior Release. The Fund will invest in such leveraged loans that the
Adviser or Sub-Adviser deems to be highly liquid with readily available
prices. The Fund will invest in leveraged loans rated C or higher by an
NRSRO or is unrated but considered to be of comparable quality by the
Adviser or Sub-Adviser. The Fund will not invest in leveraged loans
that are in default at time of purchase.
[[Page 54717]]
The Fund will only invest in U.S. dollar-denominated leveraged loans.
In addition, for investment purposes, the leveraged loan must have a
par amount outstanding of U.S. $150 million or greater at the time the
loan is originally issued. The Adviser represents that the investment
objective of the Fund will not be changing.
The proposed rule change is designed to promote just and equitable
principles of trade and to protect investors and the public interest in
that the net asset value (``NAV'') per Share is calculated daily and
that the NAV and the Disclosed Portfolio is made available to all
market participants at the same time. The intra-day, closing and
settlement prices of the portfolio securities, including any leveraged
loans held by the Fund, will also be readily available from the
national securities exchanges trading such securities, automated
quotation systems, published or other public sources, or on-line
information services. The Portfolio Indicative Value, as defined in
NYSE Arca Equities Rule 8.600 (c)(3), is disseminated by one or more
major market data vendors at least every 15 seconds during the
Exchange's Core Trading Session. On each business day, before
commencement of trading in Shares in the Core Trading Session on the
Exchange, the Fund discloses on its Web site the Disclosed Portfolio
that will form the basis for the Fund's calculation of NAV at the end
of the business day. Information regarding market price and trading
volume of the Shares is and will be continually available on a real-
time basis throughout the day on brokers' computer screens and other
electronic services, and quotation and last-sale information is
available via the Consolidated Tape Association high-speed line.
Trading in Shares of the Fund 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. Trading in the Shares is
subject to NYSE Arca Equities Rule 8.600(d)(2)(D), which sets forth
circumstances under which Shares of the Fund may be halted. The Web
site for the Fund includes a form of the prospectus for the Fund and
additional data relating to NAV and other applicable quantitative
information. In addition, as stated in the Prior Release, investors
have ready access to information regarding the Fund's holdings, the
Portfolio Indicative Value, the Disclosed Portfolio, and quotation and
last-sale information for the Shares.
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. As noted in the Prior Release, the Exchange has in
place surveillance procedures relating to trading in the Shares and may
obtain information via the Intermarket Surveillance Group (``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 stated in the Prior Notice, investors have ready access to
information regarding the Fund's holdings, the Portfolio Indicative
Value, the Disclosed Portfolio, and quotation and last-sale information
for the Shares. As noted above, the Fund may invest up to 20% of its
net assets in only highly liquid leveraged loans with readily available
prices. The Fund will invest in leveraged loans rated C or higher by an
NRSRO or is unrated but considered to be of comparable quality by the
Adviser or Sub-Adviser. The Fund will not invest in leveraged loans
that are in default at time of purchase. The Fund will only invest in
U.S. dollar-denominated leveraged loans. In addition, for investment
purposes, the leveraged loan must have a par amount outstanding of U.S.
$150 million or greater at the time the loan is originally issued.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purpose of the Act. The Exchange believes that
the proposed rule change, in permitting the Fund to utilize leveraged
loans as part of its portfolio to achieve its investment objective,
will enhance competition among issues of Managed Fund Shares that
invest in leveraged loans.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the proposed rule change does not: (i) Significantly affect
the protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act\15\ and Rule 19b-
4(f)(6) thereunder.\16\
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\15\ 15 U.S.C. 78s(b)(3)(A).
\16\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of the proposed rule change, at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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A proposed rule change filed under Rule 19b-4(f)(6) \17\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b4(f)(6)(iii),\18\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposal
may become operative immediately upon filing. The Commission notes that
waiver of the operative delay would permit the Fund to invest
immediately in leveraged loans that the Sub-Adviser believes will
further the Fund's investment objective to achieve high current income
with a secondary goal of capital appreciation.
---------------------------------------------------------------------------
\17\ Id.
\18\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------
Under the proposal, the Fund's investments in leveraged loans would
be limited to 20% of its net assets. The Exchange states that the Fund
will not invest in leveraged loans that are in default at time of
purchase and that the Fund will only invest in U.S. dollar-denominated
leveraged loans. In addition, for investment purposes, each leveraged
loan must have a par amount outstanding of U.S. $150 million or greater
at the time the loan is originally issued. The Commission notes that it
has approved the listing and trading of shares of another exchange-
traded fund that principally invests in similar leveraged loans.\19\
The Exchange represents that the Fund's investment objective is not
changing, all other representations made in the Prior Release remain
unchanged, and the Fund will continue to comply with all of the listing
requirements under NYSE Arca Equities Rule 8.600. For the foregoing
reasons, the Commission believes that the proposed change does not
raise novel or unique regulatory issues and is consistent with the
protection of investors and the public interest. Therefore, the
Commission waives the 30-day operative delay requirement and designates
the
[[Page 54718]]
proposed rule change as operative upon filing.\20\
---------------------------------------------------------------------------
\19\ See note 9, supra.
\20\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------
At any time within 60 days of the filing of such proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-NYSEArca-2013-83 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-2013-83. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m.. Copies of the filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File No. SR-NYSEArca-2013-83 and should be
submitted on or before September 26, 2013.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\21\
Kevin M. O'Neill,
Deputy Secretary.
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\21\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2013-21535 Filed 9-4-13; 8:45 am]
BILLING CODE 8011-01-P