Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Designation of a Longer Period for Commission Action on Proposed Rule Change, as Modified by Amendment Nos. 1 and 4 Thereto, Relating to Listing and Trading of Shares of the Reality Shares DIVS Index ETF Under NYSE Arca Equities Rule 5.2(j)(3), 35205-35206 [2014-14316]

Download as PDF Federal Register / Vol. 79, No. 118 / Thursday, June 19, 2014 / Notices 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 such filing also will be available for inspection and copying at the principal offices of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR– NYSEMKT–2014–51, and should be submitted on or before July 10, 2014. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.13 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2014–14312 Filed 6–18–14; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–72384; File No. SR– NASDAQ–2014–038] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Designation of a Longer Period for Commission Action on Proposed Rule Change, as Modified by Amendment Nos. 1 and 2 Thereto, Relating to the Listing and Trading of the Shares of the Reality Shares NASDAQ–100 DIVS Index ETF of the Reality Shares ETF Trust Under Rule 5705 emcdonald on DSK67QTVN1PROD with NOTICES June 13, 2014. On April 10, 2014, The NASDAQ Stock Market LLC (‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 13 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). VerDate Mar<15>2010 17:25 Jun 18, 2014 Jkt 232001 19b–4 thereunder,2 a proposed rule change to list and trade shares of the Reality Shares NASDAQ–100 DIVS Index ETF (‘‘Fund’’) (formerly, Reality Shares NASDAQ–100 Isolated Dividend Growth Index ETF) under Rule 5705. The proposed rule change was published for comment in the Federal Register on April 30, 2014.3 On May 13, 2014, the Exchange filed Amendment No. 1 to the proposed rule change, which amended and replaced the proposed rule change in its entirety.4 On June 4, 2014, the Exchange filed Amendment No. 2 to the proposed rule change.5 The Commission received no comment letters on the proposed rule change. The proposed rule change would permit the listing and trading of shares of the Fund, which would seek longterm capital appreciation by tracking the performance of the Reality Shares NASDAQ–100 DIVS Index (‘‘Index’’) (formerly, Reality Shares NASDAQ–100 Isolated Dividend Growth Index). At least 80% of the Fund’s total assets would be invested in the component securities of the Index, which would be calculated using a proprietary, rulesbased methodology designed to track market expectations for dividend growth conveyed in real-time using the mid-point of the bid-ask spread on U.S. exchange-listed NASDAQ–100 Index options and U.S. exchange-listed options on exchange traded funds designed to track the NASDAQ–100 Index. Under the proposal, the Fund would buy (i.e., hold a ‘‘long’’ position in) and sell (i.e., hold a ‘‘short’’ position in) put and call options. The strategy of taking both a long position in a security through its ex-dividend date (the last date an investor can own the security and receive dividends paid on the security) and a corresponding short position in the same security immediately thereafter is designed to allow the Fund to isolate its exposure to the growth of the level of dividends 2 17 CFR 240.19b-4. Securities Exchange Act Release No. 72014 (Apr. 24, 2014), 79 FR 24465. 4 In Amendment No. 1, the Exchange confirms the three trading sessions on the Exchange, clarifies the valuation of investments for purposes of calculating net asset value, clarifies what information would be available on the Fund’s Web site, and provides additional information relating to surveillance with respect to certain assets to be held by the Fund. 5 In Amendment No. 2, the Exchange amends the proposal to reflect a name change to the Fund and the underlying index. Specifically, the Exchange replaces each reference to ‘‘Reality Shares NASDAQ–100 Isolated Dividend Growth Index ETF’’ in the proposal with ‘‘Reality Shares NASDAQ–100 DIVS Index ETF,’’ and replaces each reference to ‘‘Reality Shares NASDAQ–100 Isolated Dividend Growth Index’’ in the proposal with ‘‘Reality Shares NASDAQ–100 DIVS Index.’’ 3 See PO 00000 Frm 00058 Fmt 4703 Sfmt 4703 35205 expected to be paid on such security while minimizing its exposure to changes in the trading price of such security. Section 19(b)(2) of the Act 6 provides that, within 45 days of the publication of notice of the filing of a proposed rule change, or within such longer period up to 90 days as the Commission may designate if it finds such longer period to be appropriate and publishes its reasons for so finding or as to which the self-regulatory organization consents, the Commission shall either approve the proposed rule change, disapprove the proposed rule change, or institute proceedings to determine whether the proposed rule change should be disapproved. The Commission is extending this 45-day time period. The Commission finds that it is appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the unique nature of the investment strategy of the proposed Fund. Accordingly, the Commission, pursuant to Section 19(b)(2) of the Act,7 designates July 29, 2014, as the date by which the Commission should either approve or disapprove or institute proceedings to determine whether to disapprove the proposed rule change (File Number SR–NASDAQ–2014–038). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.8 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2014–14317 Filed 6–18–14; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–72385; File No. SR– NYSEArca–2014–41)] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Designation of a Longer Period for Commission Action on Proposed Rule Change, as Modified by Amendment Nos. 1 and 4 Thereto, Relating to Listing and Trading of Shares of the Reality Shares DIVS Index ETF Under NYSE Arca Equities Rule 5.2(j)(3) June 13, 2014. On April 11, 2014, NYSE Arca, Inc. (‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’), pursuant to Section 6 15 U.S.C. 78s(b)(2). 7 Id. 8 17 E:\FR\FM\19JNN1.SGM CFR 200.30–3(a)(31). 19JNN1 35206 Federal Register / Vol. 79, No. 118 / Thursday, June 19, 2014 / Notices 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a proposed rule change to list and trade shares of the Reality Shares DIVS Index ETF (‘‘Fund’’) (formerly, Reality Shares Isolated Dividend Growth Index ETF) under NYSE Arca Equities Rule 5.2(j)(3). The proposed rule change was published for comment in the Federal Register on April 30, 2014.3 On May 6, 2014, the Exchange filed Amendment No. 1 to the proposed rule change, which amended and replaced the proposed rule change in its entirety.4 On June 6, 2014, the Exchange filed Amendment No. 4 to the proposed rule change.5 The Commission received no comment letters on the proposed rule change. The proposed rule change would permit the listing and trading of shares of the Fund, which would seek longterm capital appreciation by tracking the performance of the Reality Shares DIVS Index (‘‘Index’’) (formerly, Reality Shares Isolated Dividend Growth Index). At least 80% of the Fund’s total assets would be invested in the component securities of the Index, which would be calculated using a proprietary, rules-based methodology designed to track market expectations for dividend growth conveyed in realtime using the mid-point of the bid-ask spread on U.S. exchange-listed S&P 500 Index options and U.S. exchange-listed options on exchange traded funds designed to track the S&P 500 Index. Under the proposal, the Fund would buy (i.e., hold a ‘‘long’’ position in) and sell (i.e., hold a ‘‘short’’ position in) put and call options. The strategy of taking both a long position in a security through its ex-dividend date (the last date an investor can own the security and receive dividends paid on the security) and a corresponding short position in the same security immediately thereafter is designed to 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 See Securities Exchange Act Release No. 72015 (Apr. 24, 2014), 79 FR 24475. 4 In Amendment No. 1, the Exchange clarifies the valuation of investments for purposes of calculating net asset value, provides additional details regarding the dissemination of the Disclosed Portfolio, and makes other minor technical edits to the proposed rule change. 5 The Exchange filed Amendment No. 2 on June 4, 2014 and withdrew it on June 5, 2014, and filed Amendment No. 3 on June 5, 2014 and withdrew it on June 6, 2014. Amendment No. 4 supersedes both Amendment Nos. 2 and 3. In Amendment No. 4, the Exchange amends the proposal to reflect a name change to the Fund and the underlying index. Specifically, the Exchange replaces each reference to ‘‘Reality Shares Isolated Dividend Growth Index ETF’’ in the proposal with ‘‘Reality Shares DIVS Index ETF,’’ and replaces each reference to ‘‘Reality Shares Isolated Dividend Growth Index’’ in the proposal with ‘‘Reality Shares DIVS Index.’’ emcdonald on DSK67QTVN1PROD with NOTICES 2 17 VerDate Mar<15>2010 17:25 Jun 18, 2014 Jkt 232001 allow the Fund to isolate its exposure to the growth of the level of dividends expected to be paid on such security while minimizing its exposure to changes in the trading price of such security. Section 19(b)(2) of the Act 6 provides that, within 45 days of the publication of notice of the filing of a proposed rule change, or within such longer period up to 90 days as the Commission may designate if it finds such longer period to be appropriate and publishes its reasons for so finding or as to which the self-regulatory organization consents, the Commission shall either approve the proposed rule change, disapprove the proposed rule change, or institute proceedings to determine whether the proposed rule change should be disapproved. The Commission is extending this 45-day time period. The Commission finds that it is appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the unique nature of the investment strategy of the proposed Fund. Accordingly, the Commission, pursuant to Section 19(b)(2) of the Act,7 designates July 29, 2014, as the date by which the Commission should either approve or disapprove or institute proceedings to determine whether to disapprove the proposed rule change (File Number SR–NYSEArca–2014–41). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.8 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2014–14316 Filed 6–18–14; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–72387; File No. SR–CHX– 2014–09] Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Remove Obsolete Rule Language and To Permit the Exchange To Enable or Disable Trade Adjustment Functionalities Pursuant to Notice June 13, 2014. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 6 15 U.S.C. 78s(b)(2). PO 00000 I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change CHX proposes to amend Article 1, Rule 1 (Definitions); Article 20, Rule 4 (Eligible Orders); Article 20, Rule 9 (Cancellation or Adjustment of Bona Fide Error Trades); Article 20, Rule 9A (Error Correction Transactions); and Article 20, Rule 11 (Cancellation or Adjustment of Stock Leg Trades) to remove obsolete rule language and to permit the Exchange to enable or disable trade adjustment functionalities pursuant to notice. The Exchange has designated this proposal as noncontroversial and provided the Commission with the notice required by Rule 19b–4(f)(6)(iii) under the Act.3 The text of this proposed rule change is available on the Exchange’s Web site at (www.chx.com) and in 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 CHX included statements concerning the purpose of and basis for the proposed rule changes 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 CHX has prepared summaries, set forth in sections A, B and C below, of the most significant aspects of such statements. 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 Article 1, Rule 1 (Definitions); Article 20, Rule 4 (Eligible Orders); Article 20, Rule 9 (Cancellation or Adjustment of Bona Fide Error Trades); Article 20, 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 17 CFR 240.19b–4(f)(6)(iii). 7 Id. 8 17 (‘‘Act’’),1 and Rule 19b–4 2 thereunder, notice is hereby given that on June 10, 2014, the Chicago Stock Exchange, Inc. (‘‘CHX’’ or the ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘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. 2 17 CFR 200.30–3(a)(31). Frm 00059 Fmt 4703 Sfmt 4703 E:\FR\FM\19JNN1.SGM 19JNN1

Agencies

[Federal Register Volume 79, Number 118 (Thursday, June 19, 2014)]
[Notices]
[Pages 35205-35206]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-14316]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-72385; File No. SR-NYSEArca-2014-41)]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of 
Designation of a Longer Period for Commission Action on Proposed Rule 
Change, as Modified by Amendment Nos. 1 and 4 Thereto, Relating to 
Listing and Trading of Shares of the Reality Shares DIVS Index ETF 
Under NYSE Arca Equities Rule 5.2(j)(3)

June 13, 2014.
    On April 11, 2014, NYSE Arca, Inc. (``Exchange'') filed with the 
Securities and Exchange Commission (``Commission''), pursuant to 
Section

[[Page 35206]]

19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 
19b-4 thereunder,\2\ a proposed rule change to list and trade shares of 
the Reality Shares DIVS Index ETF (``Fund'') (formerly, Reality Shares 
Isolated Dividend Growth Index ETF) under NYSE Arca Equities Rule 
5.2(j)(3). The proposed rule change was published for comment in the 
Federal Register on April 30, 2014.\3\ On May 6, 2014, the Exchange 
filed Amendment No. 1 to the proposed rule change, which amended and 
replaced the proposed rule change in its entirety.\4\ On June 6, 2014, 
the Exchange filed Amendment No. 4 to the proposed rule change.\5\ The 
Commission received no comment letters on the proposed rule change.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 72015 (Apr. 24, 
2014), 79 FR 24475.
    \4\ In Amendment No. 1, the Exchange clarifies the valuation of 
investments for purposes of calculating net asset value, provides 
additional details regarding the dissemination of the Disclosed 
Portfolio, and makes other minor technical edits to the proposed 
rule change.
    \5\ The Exchange filed Amendment No. 2 on June 4, 2014 and 
withdrew it on June 5, 2014, and filed Amendment No. 3 on June 5, 
2014 and withdrew it on June 6, 2014. Amendment No. 4 supersedes 
both Amendment Nos. 2 and 3. In Amendment No. 4, the Exchange amends 
the proposal to reflect a name change to the Fund and the underlying 
index. Specifically, the Exchange replaces each reference to 
``Reality Shares Isolated Dividend Growth Index ETF'' in the 
proposal with ``Reality Shares DIVS Index ETF,'' and replaces each 
reference to ``Reality Shares Isolated Dividend Growth Index'' in 
the proposal with ``Reality Shares DIVS Index.''
---------------------------------------------------------------------------

    The proposed rule change would permit the listing and trading of 
shares of the Fund, which would seek long-term capital appreciation by 
tracking the performance of the Reality Shares DIVS Index (``Index'') 
(formerly, Reality Shares Isolated Dividend Growth Index). At least 80% 
of the Fund's total assets would be invested in the component 
securities of the Index, which would be calculated using a proprietary, 
rules-based methodology designed to track market expectations for 
dividend growth conveyed in real-time using the mid-point of the bid-
ask spread on U.S. exchange-listed S&P 500 Index options and U.S. 
exchange-listed options on exchange traded funds designed to track the 
S&P 500 Index. Under the proposal, the Fund would buy (i.e., hold a 
``long'' position in) and sell (i.e., hold a ``short'' position in) put 
and call options. The strategy of taking both a long position in a 
security through its ex-dividend date (the last date an investor can 
own the security and receive dividends paid on the security) and a 
corresponding short position in the same security immediately 
thereafter is designed to allow the Fund to isolate its exposure to the 
growth of the level of dividends expected to be paid on such security 
while minimizing its exposure to changes in the trading price of such 
security.
    Section 19(b)(2) of the Act \6\ provides that, within 45 days of 
the publication of notice of the filing of a proposed rule change, or 
within such longer period up to 90 days as the Commission may designate 
if it finds such longer period to be appropriate and publishes its 
reasons for so finding or as to which the self-regulatory organization 
consents, the Commission shall either approve the proposed rule change, 
disapprove the proposed rule change, or institute proceedings to 
determine whether the proposed rule change should be disapproved. The 
Commission is extending this 45-day time period.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------

    The Commission finds that it is appropriate to designate a longer 
period within which to take action on the proposed rule change so that 
it has sufficient time to consider the proposed rule change and the 
unique nature of the investment strategy of the proposed Fund.
    Accordingly, the Commission, pursuant to Section 19(b)(2) of the 
Act,\7\ designates July 29, 2014, as the date by which the Commission 
should either approve or disapprove or institute proceedings to 
determine whether to disapprove the proposed rule change (File Number 
SR-NYSEArca-2014-41).
---------------------------------------------------------------------------

    \7\ Id.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
---------------------------------------------------------------------------

    \8\ 17 CFR 200.30-3(a)(31).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-14316 Filed 6-18-14; 8:45 am]
BILLING CODE 8011-01-P
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