Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing of Amendment No. 1 to Proposed Rule Change To Amend NYSE Arca Equities Rule 5.2(j)(3), Commentary .02 Relating to Listing of Investment Company Units Based on Municipal Bond Indexes, 54357-54362 [2015-22604]
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Federal Register / Vol. 80, No. 174 / Wednesday, September 9, 2015 / Notices
rolling period, the Board, including a
majority of the Independent Directors:
(1) Will request and evaluate, and the
Adviser will furnish, such information
as may be reasonably necessary to make
an informed determination of whether
the Distribution Policy should be
continued or continued after
amendment;
(2) will determine whether
continuation, or continuation after
amendment, of the Distribution Policy is
consistent with the Fund’s investment
objective(s) and policies and is in the
best interests of the Fund and its
shareholders, after considering the
information in condition 5(b)(i)(1)
above; including, without limitation:
(A) Whether the Distribution Policy is
accomplishing its purpose(s);
(B) the reasonably foreseeable
material effects of the Distribution
Policy on the Fund’s long-term total
return in relation to the market price
and NAV of the Fund’s common shares;
and
(C) the Fund’s current distribution
rate, as described in condition 5(b)
above, compared with the Fund’s
average annual taxable income or total
return over the two-year period, as
described in condition 5(b), or such
longer period as the Board deems
appropriate; and
(3) based upon that determination,
will approve or disapprove the
continuation, or continuation after
amendment, of the Distribution Policy;
and
(ii) The Board will record the
information considered by it, including
its consideration of the factors listed in
condition 5(b)(i)(2) above, and the basis
for its approval or disapproval of the
continuation, or continuation after
amendment, of the Distribution Policy
in its meeting minutes, which must be
made and preserved for a period of not
less than six years from the date of such
meeting, the first two years in an easily
accessible place.
6. Public Offerings. The Fund will not
make a public offering of its common
shares other than:
(a) A rights offering below NAV to
holders of the Fund’s common shares;
(b) an offering in connection with a
dividend reinvestment plan, merger,
consolidation, acquisition, spin-off or
reorganization of the Fund; or
(c) an offering other than an offering
described in conditions 6(a) and 6(b)
above, provided that, with respect to
such other offering:
(i) The Fund’s annualized distribution
rate for the six months ending on the
last day of the month ended
immediately prior to the most recent
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14:19 Sep 08, 2015
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distribution record date,5 expressed as a
percentage of NAV as of such date, is no
more than 1 percentage point greater
than the Fund’s average annual total
return for the 5-year period ending on
such date; 6 and
(ii) the transmittal letter
accompanying any registration
statement filed with the Commission in
connection with such offering discloses
that the Fund has received an order
under section 19(b) to permit it to make
periodic distributions of long-term
capital gains with respect to its common
shares as frequently as twelve times
each year, and as frequently as
distributions are specified by or
determined in accordance with the
terms of any outstanding preferred
shares as such Fund may issue.
7. Amendments to Rule 19b–1.
The requested order will expire on the
effective date of any amendment to rule
19b–1 that provides relief permitting
certain closed-end investment
companies to make periodic
distributions of long-term capital gains
with respect to their outstanding
common shares as frequently as twelve
times each year.
For the Commission, by the Division of
Investment Management, under delegated
authority.
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015–22602 Filed 9–8–15; 8:45 am]
54357
Rule 19b–4 thereunder,2 a proposed rule
change to amend NYSE Arca Equities
Rule 5.2(j)(3), Commentary .02 relating
to the listing of Investment Company
Units based on municipal bond indexes.
The proposed rule change was
published for comment in the Federal
Register on February 4, 2015.3 On
March 19, 2015, pursuant to section
19(b)(2) of the Act,4 the Commission
designated a longer period within which
to approve the proposed rule change,
disapprove the proposed rule change, or
institute proceedings to determine
whether to disapprove the proposed
rule change.5 On May 4, 2015, the
Commission published an order
instituting proceedings under section
19(b)(2)(B) of the Act 6 to determine
whether to approve or disapprove the
proposed rule change.7 On July 30,
2015, the Commission issued a notice of
designation of a longer period for
Commission action on proceedings to
determine whether to approve or
disapprove the proposed rule change.8
The Commission has received no
comment letters on the proposed rule
change.
Pursuant to section 19(b)(1) 9 of the
Act 10 and Rule 19b–4 thereunder,11
notice is hereby given that, on August
28, 2015, the Exchange filed with the
Commission Amendment No. 1 to the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the Exchange.12 The
BILLING CODE 8011–01–P
2 17
CFR 240.19b–4.
Securities Exchange Act Release No. 74175
(Jan. 29, 2015), 80 FR 6150 (‘‘Notice’’).
4 15 U.S.C. 78s(b)(2).
5 See Securities Exchange Act Release No. 74534,
80 FR 15834 (Mar. 25, 2015). The Commission
designated a longer period within which to take
action on the proposed rule change and designated
May 5, 2015, as the date by which it should
approve, disapprove, or institute proceedings to
determine whether to disapprove the proposed rule
change.
6 15 U.S.C. 78s(b)(2)(B).
7 See Securities Exchange Act Release No. 74863
(May 4, 2015), 80 FR 26591 (May 8, 2015) (‘‘Order
Instituting Proceedings’’). Specifically, the
Commission instituted proceedings to allow for
additional analysis of the proposed rule change’s
consistency with Section 6(b)(5) of the Act, which
requires, among other things, that the rules of a
national securities exchange be ‘‘designed to
prevent fraudulent and manipulative acts and
practices, to promote just and equitable principles
of trade,’’ and ‘‘to protect investors and the public
interest.’’ See id.
8 See Securities Exchange Act Release No. 75569,
80 FR 46627 (Aug. 5, 2015). The Commission
designated a longer period within which to take
action on the proposed rule change and designated
October 2, 2015 as the date by which it should
approve or disapprove the proposed rule change.
9 15 U.S.C. 78s(b)(1).
10 15 U.S.C. 78a.
11 17 CFR 240.19b–4.
12 Amendment No. 1 replaces SR–NYSEArca–
2015–01 as originally filed and supersedes such
3 See
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–75811; File No. SR–
NYSEArca–2015–01]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing of
Amendment No. 1 to Proposed Rule
Change To Amend NYSE Arca Equities
Rule 5.2(j)(3), Commentary .02 Relating
to Listing of Investment Company
Units Based on Municipal Bond
Indexes
September 2, 2015.
On January 16, 2015, NYSE Arca, Inc.
(‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’), pursuant to section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’ or ‘‘Exchange Act’’) 1 and
5 If the Fund has been in operation fewer than six
months, the measured period will begin
immediately following the Fund’s first public
offering.
6 If the Fund has been in operation fewer than five
years, the measured period will begin immediately
following the Fund’s first public offering.
1 15 U.S.C. 78s(b)(1).
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Federal Register / Vol. 80, No. 174 / Wednesday, September 9, 2015 / Notices
Commission is publishing this notice to
solicit comments from interested
persons on the proposed rule change, as
modified by Amendment No. 1.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
1. Purpose
NYSE Arca Equities Rule 5.2(j)(3)
permits the listing and trading,
including trading pursuant to unlisted
trading privileges (‘‘UTP’’), of
Investment Company Units (‘‘Units’’).13
NYSE Arca Equities Rule 5.2(j)(3),
Commentary .02 provides for listing on
the Exchange pursuant to Rule 19b–
4(e) 14 under the Act of a series of Units
with an underlying index or portfolio of
Fixed Income Securities 15 meeting
specified criteria.16 These ‘‘generic’’
listing criteria permit listing and trading
on the Exchange of series of Units
meeting such criteria without
Commission approval of each
individual product pursuant to Section
19(b)(2) of the Act.17
NYSE Arca Equities Rule 5.2(j)(3),
Commentary .02(a)(2) provides that, in
order to be listed and traded pursuant
to Rule 19b–4(e), components of an
index or portfolio that in aggregate
account for at least 75% of the weight
of the index or portfolio each shall have
a minimum original principal amount
outstanding of $100 million or more.18
The Exchange proposes to amend
NYSE Arca Equities Rule 5.2(j)(3),
Commentary .02 relating to listing of
Investment Company Units based on
municipal bond indexes. 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
Lhorne on DSK5TPTVN1PROD 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.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
filing in its entirety. In Amendment No. 1, the
Exchange proposes to amend NYSE Arca Equities
Rule 5.2(j)(3), Commentary .02(a)(2) to add the
following criteria for listing on the Exchange,
pursuant to Rule 19b–4(e) under the Act, of a series
of Investment Company Units based on an index or
portfolio of only municipal bond components: (1)
75% of the weight of the index or portfolio shall
be issued in an offering with an aggregate size, as
set forth in the official statement of the offering, of
$100 million or more; (2) the average dollar amount
outstanding of components of the index or portfolio
shall be at least $10 million; (3) each component of
the index or portfolio shall have a minimum
principal amount outstanding of at least $2 million;
(4) the index or portfolio must include at least 1,000
components; and (5) the index or portfolio must
include a minimum of 13 non-affiliated issuers.
Additionally, in Amendment No. 1, the Exchange
proposes to remove municipal securities from the
exempted securities excluded from the criterion in
NYSE Arca Equities Rule 5.2(j)(3), Commentary
.02(a)(5) that an underlying index or portfolio
(excluding one consisting entirely of exempted
securities) must include a minimum of 13 nonaffiliated issuers. In Amendment No. 1, the
Exchange also describes the bases for its proposed
changes to the criteria in NYSE Arca Equities Rule
5.2(j)(3), Commentary .02; explains that the
proposed criteria in proposed Commentary
.02(a)(2)(B)(ii)–(v) would facilitate the generic
listing of funds based on municipal bond index
components that are sufficiently broad-based and
liquid to deter manipulation; and makes technical
changes to the filing.
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14:19 Sep 08, 2015
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13 An Investment Company Unit is a security that
represents an interest in a registered investment
company that holds securities comprising, or
otherwise based on or representing an interest in,
an index or portfolio of securities (or holds
securities in another registered investment
company that holds securities comprising, or
otherwise based on or representing an interest in,
an index or portfolio of securities). See NYSE Arca
Equities Rule 5.2(j)(3)(A).
14 17 CFR 240.19b–4(e).
15 Fixed Income Securities are described in NYSE
Arca Equities Rule 5.2(j)(3), Commentary .02 as debt
securities that are notes, bonds, debentures or
evidence of indebtedness that include, but are not
limited to, U.S. Department of Treasury securities,
government-sponsored entity securities, municipal
securities, trust preferred securities, supranational
debt and debt of a foreign country or a subdivision
thereof.
16 The Commission approved NYSE Arca Equities
Rule 5.2(j)(3), Commentary .02 in Securities
Exchange Act Release No. 55783 (May 17, 2007), 72
FR 29194 (May 24, 2007) (SR–NYSEArca–2007–36)
(order approving generic listing standards for series
of Units based on Fixed Income Indexes and
Combination Indexes). The Commission also
approved generic listing standards for the American
Stock Exchange LLC (‘‘Amex’’) for Index Fund
Shares based on Fixed Income Indexes and
Combination Indexes in Securities Exchange Act
Release No. 55437 (March 9, 2007), 72 FR 12233
(March 15, 2007) (SR–Amex–2006–118). The
Commission has approved listing of exchangetraded funds based on a fixed income index or
portfolio. See, e.g., Securities Exchange Act Release
No. 48534 (September 24, 2003), 68 FR 56353
(September 30, 2003) (SR–Amex–2003–75) (order
approving listing on Amex of eight series of iShares
Lehman Bond Funds).
17 15 U.S.C. 78s(b)(2).
18 This Amendment No. 1 to SR–NYSEArca–
2015–01 replaces SR–NYSEArca–2015–01 as
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The Exchange proposes to amend its
generic listing criteria applicable to
Units to better apply to the listing of
Units based on indexes that include
municipal bonds because the features of
such bonds differ from those of most
other Fixed Income Securities.19
originally filed and supersedes such filing in its
entirety.
19 The Commission previously has approved
proposed rule changes relating to listing and trading
on the Exchange of Units based on municipal bond
indexes. See Securities Exchange Act Release Nos.
67985 (October 4, 2012), 77 FR 61804 (October 11,
2012) (SR–NYSEArca–2012–92) (order approving
proposed rule change relating to the listing and
trading of iShares 2018 S&P AMT-Free Municipal
Series and iShares 2019 S&P AMT-Free Municipal
Series under NYSE Arca Equities Rule 5.2(j)(3),
Commentary .02); 67729 (August 24, 2012), 77 FR
52776 (August 30, 2012) (SR–NYSEArca–2012–92)
(notice of proposed rule change relating to the
listing and trading of iShares 2018 S&P AMT-Free
Municipal Series and iShares 2019 S&P AMT-Free
Municipal Series under NYSE Arca Equities Rule
5.2(j)(3), Commentary .02) (‘‘iShares 2018 Notice’’);
72523, (July 2, 2014), 79 FR 39016 (July 9, 2014)
(SR–NYSEArca–2014–37) (order approving
proposed rule change relating to the listing and
trading of iShares 2020 S&P AMT-Free Municipal
Series under NYSE Arca Equities Rule 5.2(j)(3),
Commentary .02); 72172 (May 15, 2014), 79 FR
29241 (May 21, 2014) (SR–NYSEArca–2014–37)
(notice of proposed rule change relating to the
listing and trading of iShares 2020 S&P AMT-Free
Municipal Series under NYSE Arca Equities Rule
5.2(j)(3), Commentary .02) (‘‘iShares 2020 Notice’’);
72464 (June 25, 2014), 79 FR 37373 (July 1, 2014)
(File No. SR–NYSEArca–2014–45) (order approving
proposed rule change governing the continued
listing and trading of shares of the PowerShares
Insured California Municipal Bond Portfolio,
PowerShares Insured National Municipal Bond
Portfolio, and PowerShares Insured New York
Municipal Bond Portfolio) (‘‘PowerShares Order’’);
75468 (July 16, 2015), 80 FR 43500 (July 22, 2015)
(SR–NYSEArca–2015–25) (order approving
proposed rule change relating to the listing and
trading of iShares iBonds Dec 2021 AMT-Free Muni
Bond ETF and iShares iBonds Dec 2022 AMT-Free
Muni Bond ETF under NYSE Arca Equities Rule
5.2(j)(3))(‘‘iShares 2021/2022 Order’’); 74730 (April
15, 2015), 76 FR 22234 (April 21, 2015) (notice of
proposed rule change relating to the listing and
trading of iShares iBonds Dec 2021 AMT-Free Muni
Bond ETF and iShares iBonds Dec 2022 AMT-Free
Muni Bond ETF under NYSE Arca Equities Rule
5.2(j)(3), Commentary .02) (‘‘iShares 2021/2022
Notice’’); 74730 [sic] 75376 (July 7, 2015), 80 FR
40113 (July 13, 2015) (SR–NYSEArca–2015–18)
(order approving proposed rule change relating to
the listing and trading of Vanguard Tax-Exempt
Bond Index Fund under NYSE Arca Equities Rule
5.2(j)(3)). The Commission also has issued a notice
of filing and immediate effectiveness of a proposed
rule change relating to listing and trading on the
Exchange of shares of the iShares Taxable
Municipal Bond Fund. See Securities Exchange Act
Release No. 63176 (October 25, 2010), 75 FR 66815
(October 29, 2010) (SR–NYSEArca–2010–94). The
Commission has approved for Exchange listing and
trading of shares of two actively managed funds of
the PIMCO ETF Trust that principally hold
municipal bonds. See Securities Exchange Act
Release No. 60981 (November 10, 2009), 74 FR
59594 (November 18, 2009) (SR–NYSEArca–2009–
79) (order approving listing and trading of shares
of the PIMCO Short-Term Municipal Bond Strategy
Fund and PIMCO Intermediate Municipal Bond
Strategy Fund). The Commission also has approved
listing and trading on the Exchange of shares of the
SPDR Nuveen S&P High Yield Municipal Bond
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Federal Register / Vol. 80, No. 174 / Wednesday, September 9, 2015 / Notices
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The Exchange proposes to amend
NYSE Arca Equities Rule 5.2(j)(3),
Commentary .02(a)(2) to provide an
alternative for Units based on an index
or portfolio of municipal bond securities
to the criterion that components that in
the aggregate account for 75% of the
weight of the index or portfolio have a
minimum original principal amount
outstanding of $100 million or more.
Specifically, the Exchange proposes
that, with respect to an index or
portfolio of only municipal bond
components, the index or portfolio shall
meet the following criteria:
• 75% of the weight of the index or
portfolio shall be issued in an offering
with an aggregate size, as set forth in the
official statement of the offering, of $100
million or more (the ‘‘75%
Requirement’’);
• the average dollar amount
outstanding of components of the index
or portfolio shall be at least $10 million;
• each component of the index or
portfolio shall have a minimum
principal amount outstanding of at least
$2 million;
• the index or portfolio must include
at least 1,000 components; and
• the index or portfolio must include
a minimum of 13 non-affiliated issuers.
With respect to proposed
Commentary .02(a)(2)(B)(i), the
Exchange believes it is appropriate to
calculate components of a municipal
bond index differently from other Fixed
Income Securities for purposes of the
75% weighting requirement because
municipal bond offerings differ from
U.S. Treasury, Government Sponsored
Entities (‘‘GSEs’’), or other fixed income
offerings in a variety of ways.
Principally, municipal bonds are issued
with either ‘‘serial’’ or ‘‘term’’ maturities
or some combination thereof. The
official statement issued in connection
with a municipal bond offering
describes the terms of the component
bonds and the issuer and/or obligor on
the related bonds. Such an offering is
comprised of a number of specific
maturity sizes and is based on a
specified project or group of projects
and funded by the same revenue or
other funding sources identified in the
official statement.20 The entire issue or
Fund under Commentary .02 of NYSE Arca Equities
Rule 5.2(j)(3). See Securities Exchange Act Release
No. 63881 (February 9, 2011), 76 FR 9065 (February
16, 2011) (SR–NYSEArca–2010–120).
20 There are two principal types of municipal
bonds—general obligation, which are issued to raise
capital supported by the taxing power of the issuer,
and revenue bonds, which fund projects supported
by the income these projects generate. Multiple
maturities allow municipal bond issuers to better
match and manage the timing of revenues and
expenses associated with municipal bond offerings
and projects financed thereby, and allow issuers to
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Jkt 235001
offering that includes such maturity
sizes (sometimes also referred to as the
‘‘deal size’’) receives the same credit
rating and the various maturities are all
subject to the provisions set forth in the
official statement.21
Because the individual municipal
bond components of an index may
predominantly have an original
principal amount outstanding of less
than $100 million (although part of a
municipal bond offering of $100 million
or greater), NYSE Arca Equities Rule
5.2(j)(3), Commentary .02 would not
generally permit listing under Rule 19b–
4(e) of Units based on a municipal bond
index. The Exchange believes the
proposed amendment to Commentary
.02(a)(2) would facilitate listing of Units
based on municipal bond indexes by
permitting the Exchange, in applying its
generic listing criteria, to take into
account the aggregate size of the
municipal bond offering, as set forth in
the applicable official statement, of
which an index or portfolio component
is part.
The Exchange notes that major
municipal bond indexes, while they
include individual bond maturities as
index components, include ‘‘deal size’’
as a factor in the criteria for index
constituents and additions. For
example, the index methodology for the
S&P National AMT-Free Municipal
Bond Index specifies that each bond
must be a constituent of a deal where
the deal’s original offering amount was
at least $100 million.22 In addition, for
Barclays Capital municipal bond
indexes, the index methodology for the
Barclays Capital Investment-Grade
Municipal Index specifies that a bond in
the index must be issued as part of a
transaction of at least $75 million; and
for the Barclays Capital High-Yield
Municipal Index and the Barclays
Capital Enhanced State Specific Indices,
the bond constituents must be issued as
part of a transaction of at least $20
million.23
The Commission previously has
approved listing and trading of Units
where the applicable municipal index
components did not individually meet
reduce their cost of funding over time. This is
especially important given the long-term nature of
the projects that secure municipal bond offerings
and intermittent cash flows generated from the
projects or other revenue sources. The issuer is able
to pay down the municipal bond offering, lowering
the amount outstanding, and thereby paying less
interest over the life of the issue in contrast to an
issue with a term maturity.
21 Financial information vendors provide deal
size as well as maturity size.
22 Source: Standard & Poor’s, available at
www.us.spindices.com.
23 Source: Barclays Capital Municipal Index
Research.
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54359
the 75% percentage requirement of
NYSE Arca Equities Rule 5.2(j)(3),
Commentary .02(a)(2)(A).24 As stated in
the iShares 2020 Notice, for example,
the investment adviser (Blackrock Fund
Advisors or ‘‘BFA’’) for the iShares 2020
S&P AMT-Free Municipal Series has
represented that the nature of the
municipal bond market and municipal
bond instruments makes it feasible to
categorize individual issues represented
by CUSIPs (i.e., the specific identifying
number for a security) into categories
according to common characteristics—
specifically, rating, purpose,
geographical region, and maturity. BFA
represented that bonds that share
similar characteristics tend to trade
similarly to one another; therefore,
within these categories, the issues may
be considered fungible from a portfolio
management perspective, allowing one
CUSIP to be represented by another that
shares similar characteristics for
purposes of developing an investment
strategy.25 Therefore, while a relatively
low percentage of the weight of the
applicable index components may be
part of an aggregate size offering of $100
million or more, the nature of the
municipal bond market makes such
components relatively fungible for
investment purposes when aggregated
into categories such as ratings, purpose,
geographical region, and maturity. In
addition, BFA represented that, within
a single municipal bond issuer, there are
often multiple contemporaneous or
sequential issuances that have the same
rating, structure and maturity, but have
different CUSIPs; these separate issues
by the same issuer are also likely to
trade similarly to one another.
Individual CUSIPs within the applicable
municipal bond index that share
characteristics with other CUSIPs based
on rating, purpose, geographical region,
and maturity have a high yield to
maturity correlation, and frequently
have a correlation of one or close to one.
Such correlation demonstrates that the
CUSIPs within their respective category
behave similarly.
Likewise, as noted above, the
individual maturity sizes that comprise
a municipal bond offering share a
number of important features, including
credit rating and the purpose and terms
of the offering as set forth in the
applicable official statement. As with
individual CUSIPs in an index that
share certain characteristics, as
described above, the individual
maturity sizes comprising the municipal
bond offering can be expected to be
24 See
25 See
note 19, supra.
also iShares 2021/2022 Notice, note 19,
supra.
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Federal Register / Vol. 80, No. 174 / Wednesday, September 9, 2015 / Notices
Lhorne on DSK5TPTVN1PROD with NOTICES
relatively fungible for investment
purposes. The Exchange believes that
the proposed rule change is reasonable
and appropriate in that pricing and
liquidity of such maturity sizes is
predominately based on the common
characteristics of the aggregate issue of
which the municipal bond is part. Thus,
consideration of the aggregate size of the
municipal bond offering rather than the
individual bond component does not
raise concerns regarding pricing or
liquidity of the applicable municipal
bond index components or of the Units
overlying the applicable index.
With respect to the criteria in
proposed Commentary .02(a)(2)(B)(ii)
through (v), the Exchange believes such
criteria would limit generic listing of
funds based on municipal bond index
components that are sufficiently broadbased and liquid to deter potential
manipulation of the Units. In particular,
the proposed requirement that the
average dollar amount outstanding of
components be at least $10 million is
comparable to the average dollar
amount outstanding for index
components of municipal bond indexes
underlying funds previously approved
by the Commission for Exchange
trading.26 The Exchange, in proposing
the listing of these other funds, believed
they would not be readily susceptible to
manipulation and such funds are
currently trading in a fair and orderly
manner. Similarly, the proposed
requirements that each component have
a minimum principal amount
outstanding of at least $2 million,
combined with the 75% Requirement,
would assure that individual maturities
within an index or portfolio be of
substantial size. The substantial size of
a large proportion of components in the
index or portfolio further deters the
susceptibility of the Units to
manipulation. Finally, the proposed
requirement that an index or portfolio
include at least 1,000 components and
include a minimum of 13 non-affiliated
issuers is comparable to the number of
index components of municipal bond
indexes underlying funds previously
approved by the Commission for
Exchange trading 27 and the current
requirement in Commentary .02(a)(5).28
26 See, e.g., 2021/2022 Order and PowerShares
Order, note 19, supra.
27 See, e.g., PowerShares Order, note 19, supra.
28 The Exchange notes that an index or portfolio
underlying a series of Units also would be required
to meet the requirement of NYSE Arca Equities Rule
5.2(j)(3), Commentary .02(a)(4) that ‘‘[n]o
component fixed-income security (excluding
Treasury Securities and GSE Securities) shall
represent more than 30% of the weight of the index
or portfolio, and the five most heavily weighted
component fixed-income securities in the index or
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These requirements would effectively
require that index or portfolio
components have a total dollar amount
outstanding of at least $10 billion,
which, would limit listing of Units
under the [sic] Rule 19b–4(e) to those
based on underlying indexes of
substantial size and multiple securities.
In addition, because the Exchange’s
proposed alternative listing criteria for
Units based on municipal bond indexes
or portfolios would require a minimum
of 13 non-affiliated issuers, the
Exchange proposes to change NYSE
Arca Equities Rule 5.2(j)(3),
Commentary .02(a)(5) 29 so that
municipal securities could not be
among the exempted securities in an
index or portfolio underlying a Unit that
is not subject to the minimum 13 nonaffiliated issuer requirement.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
section 6(b) 30 of the Act, in general, and
furthers the objectives of section
6(b)(5),31 in particular, in that it is
designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
facilitating transactions in securities,
and to remove impediments to and
perfect the mechanisms of a free and
open market and a national market
system, and, in general, to protect
investors and the public interest.
The Exchange believes that the
proposed rule change applicable to
trading pursuant to generic listing and
trading criteria, together with the
Exchange’s surveillance procedures
applicable to trading in the securities
covered by the proposed rules, serve to
foster investor protection. The proposed
rule change would also enhance market
competition by assisting in bringing
issues of Units with an underlying
index of municipal securities to market
more quickly, consistent with the
Commission’s adoption of Rule 19b–4(e)
under the Act.
The Commission has previously
approved proposed rule changes
relating to listing and trading on the
Exchange of Units based on municipal
bond indexes and issues of Managed
portfolio shall not in the aggregate account for more
than 65% of the weight of the index or portfolio’’.
29 NYSE Arca Equities Rule 5.2(j)(3), Commentary
.02(a)(5) provides that an underlying index or
portfolio (excluding one consisting entirely of
exempted securities) must include a minimum of 13
non-affiliated issuers. Municipal securities are
exempted securities under Section 3(a)(12)(A) of the
Act.
30 15 U.S.C. 78f(b).
31 15 U.S.C. 78f(b)(5).
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Fund Shares that hold municipal
bonds.32 With respect to proposed
Commentary .02(a)(2)(B)(i), the
Exchange notes that major municipal
bond indexes, while they include
individual bond maturities as index
components, include ‘‘deal size’’ as a
factor in the criteria for index
constituents and additions. As noted
above, municipal bonds that share
similar characteristics tend to trade
similarly to one another; therefore,
within these categories, the issues may
be considered fungible from a portfolio
management perspective, allowing one
CUSIP to be represented by another that
shares similar characteristics for
purposes of developing an investment
strategy.33 Therefore, while a relatively
low percentage of the weight of the
applicable index components may be
part of an offering with an aggregate size
of $100 million or more, the nature of
the municipal bond market makes such
components relatively fungible for
investment purposes when aggregated
into categories such as ratings, purpose,
geographical region, and maturity. As
with individual CUSIPs in an index that
share certain characteristics, as
described above, the individual
maturity sizes comprising a municipal
bond offering can be expected to be
relatively fungible for investment
purposes. The Exchange believes that
the proposed rule change is reasonable
and appropriate in that pricing and
liquidity of such maturity sizes is
predominately based on the common
characteristics of the municipal bond
offering of which the municipal bond
component is part. Thus, consideration
of the municipal bond offering rather
than the individual bond component
does not raise concerns regarding
pricing or liquidity of the applicable
municipal bond index components or of
the Units overlying the applicable
index. In addition, financial information
vendors provide deal size, as well as
maturity size information, for each
municipal bond issue.
The Exchange believes that the
proposed rule change is designed to
prevent fraudulent and manipulative
acts and practices in that Units based on
an index or portfolio that includes
municipal bond components would be
listed and traded on the Exchange
pursuant to the initial and continued
listing criteria in NYSE Arca Equities
Rule 5.2(j)(3). The proposed amendment
to NYSE Arca Equities Rule 5.2(j)(3),
Commentary .02(a)(2) would better
accommodate listing of Units based on
32 See
note 19, supra.
iShares 2018 Notice, iShares 2020 Notice
and iShares 2021/2022 Notice, note 19, supra.
33 See
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Federal Register / Vol. 80, No. 174 / Wednesday, September 9, 2015 / Notices
indexes that include municipal bonds,
in view of features of such bonds that
differ from those of most other Fixed
Income Securities. In connection with
establishing compliance with NYSE
Arca Equities Rule 5.2(j)(3),
Commentary .02(a)(2), for an index or
portfolio of municipal bond components
that does not meet the requirement that
components that in the aggregate
account for least 75% of the weight of
the index or portfolio each shall have a
minimum original principal amount
outstanding of $100 million or more,
individual municipal bond components
in an index or portfolio would be
required to be part of an offering of
substantial size (i.e., at least $100
million aggregate size). The Exchange
believes that the $100 million minimum
threshold would help ensure that a
substantial percentage of the applicable
index components are liquid. The
proposed requirement that the average
dollar amount outstanding of
components be at least $10 million is
comparable to the average dollar
amount outstanding for index
components of municipal bond indexes
underlying funds previously approved
by the Commission for Exchange
trading.34
The proposed requirement that that
[sic] each component have a minimum
principal amount outstanding of at least
$2 million, combined with the 75%
Requirement, would assure that
individual maturities within an index or
portfolio be of substantial size. The
proposed requirement that an index or
portfolio include at least 1,000
components is comparable to the
number of index components of
municipal bond indexes underlying
funds previously approved by the
Commission for Exchange trading.35
Such requirement would effectively
require that index or portfolio
components have a total dollar amount
outstanding of at least $10 billion,
which would facilitate listing of Units
based on underlying indexes of
substantial size. The proposed
requirement that an index or portfolio
include a minimum of 13 non-affiliated
issuers, which is based on the existing
requirement in Commentary .02(a)(5),
would facilitate generic listing of Units
that are diversified and broad-based.
Finally, the proposed amendment to
NYSE Arca Equities Rule 5.2(j)(3),
Commentary .02(a)(5) to exclude
municipal securities from the types of
exempted securities in an index or
portfolio that is excepted from the
34 See, e.g., 2021/2022 Order and PowerShares
Order, note 19, supra.
35 See, e.g., PowerShares Order, note 19, supra.
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14:19 Sep 08, 2015
Jkt 235001
requirement that an index or portfolio
underlying a Unit have at least 13 nonaffiliated issuers would require that the
index or portfolio include a minimum of
13 non-affiliated issuers as set forth in
proposed Commentary .02(a)(2)(B)(v).
The proposed rule change is designed
to perfect the mechanism of a free and
open market and, in general, to foster
cooperation and coordination with
persons engaged in facilitating
transactions in securities, and to remove
impediments to and perfect the
mechanisms of a free and open market
and a national market system, and, in
general, to protect investors and the
public interest in that it would facilitate
the listing and trading of additional
types of exchange-traded funds that
hold municipal bonds pursuant to the
generic listing criteria of NYSE Arca
Equities Rule 5.2(j)(3), Commentary .02,
and thus would enhance competition
among market participants, to the
benefit of investors and the marketplace.
The Exchange is proposing to modify
the criteria for qualifying Units based on
a Fixed Income Securities index or
portfolio that includes municipal bond
components by applying the same
quantitative threshold (i.e., $100 million
or more) to the aggregate size of the
municipal bond offering as the
threshold that applies to component
Fixed Income Securities generally, as set
forth in current Rule 5.2(j)(3),
Commentary .02(a)(2). The Exchange
believes that applying the $100 million
threshold to the aggregate size of the
municipal bond offering rather than to
individual maturities of the offering is
appropriate in view of differences in the
characteristics of municipal bond
issuances from issuances of other Fixed
Income Securities, as described above,
while, at the same time, assuring that
any individual municipal bond
component is part of an offering of
substantial size (i.e., at least $100
million aggregate size). In addition, the
Exchange believes that the proposed
criteria in proposed Commentary
.02(a)(2)(B)(ii) through (v) would
facilitate generic listing of funds based
on municipal bond index components
that are sufficiently broad-based and
liquid to deter potential manipulation.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change would impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
proposed rule change is not intended to
address competition among exchanges.
The Exchange believes that the
proposed rule change would remove a
PO 00000
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54361
burden on competition for issuers of
municipal bond offerings to provide that
the Exchange’s rules regarding the
listing and trading of Units pursuant to
Commentary .02 of Rule 5.2(j)(3) are
evaluated on a similar basis to other
fixed income offerings. As discussed
above, because the ‘‘deal size’’
associated with a municipal bond
offering is deemed the relevant basis for
determining pricing and liquidity of
maturity sizes of municipal bond
components that comprise an index, the
Exchange believes that the proposed
rule change addresses the unique
characteristics of municipal bond
offerings as compared to other fixed
income products in a manner consistent
with the existing requirements of
Commentary .02(a)(2) of Rule 5.2(j)(3).
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. 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, 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–2015–01 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–NYSEArca–2015–01. 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
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Federal Register / Vol. 80, No. 174 / Wednesday, September 9, 2015 / Notices
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 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 Number SR–
NYSEArca –2015–01 and should be
submitted on or before September 21,
2015.36
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.37
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015–22604 Filed 9–8–15; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–75809; File No. SR–NYSE–
2015–38]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Amending
Section 202.06 of the NYSE Listed
Company Manual
September 2, 2015.
Lhorne on DSK5TPTVN1PROD with NOTICES
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
27, 2015, New York Stock Exchange
LLC (‘‘NYSE’’ or ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘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.
36 The Commission believes that a 10-day
comment period is reasonable, given the
requirement that the Commission act on the
proposed rule change by October 2, 2015. A 10-day
period will provide adequate time for comment. See
supra notes 7 and 8.
37 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 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 amend
section 202.06 of the NYSE Listed
Company Manual (the ‘‘Manual’’) to
expand the pre-market hours during
which listed companies are required to
notify the Exchange prior to
disseminating material news, to permit
the Exchange to halt trading in certain
additional circumstances, including
when it needs to obtain more
information about a listed company
news release, and to provide guidance
related to the release of material news
after the close of trading on the
Exchange. 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 NYSE proposes to amend section
202.06 of the Manual to (i) expand the
pre-market hours during which listed
companies are required to notify the
Exchange prior to disseminating
material news, and (ii) provide the
Exchange with authority to halt trading
(a) during pre-market hours at the
request of a listed company, (b) when
the Exchange believes it is necessary to
request certain information from listed
companies, and (c) when an Exchangelisted security is also listed on another
national or foreign securities exchange
and such other exchange halts trading in
such security for regulatory reasons. The
Exchange also proposes to amend
section 202.06 of the Manual to provide
guidance related to the release of
material news after the close of trading
on the Exchange.
PO 00000
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Section 202.06 of the Manual gives
the Exchange authority to halt trading in
a listed company’s security under
certain circumstances. Currently, the
Exchange may impose a regulatory
trading halt when a listed company
announces material news 3 shortly
before the opening of trading on the
Exchange or during the Exchange
trading session (currently 9:30 a.m. to
4:00 p.m.). When that happens, the
Exchange will typically institute a
regulatory halt in trading, which halts
trading on all market centers, to ensure
full dissemination of the news to
investors. The Exchange proposes to
expand the hours and circumstances
under which it can declare a regulatory
trading halt.
Regulatory Trading Halts
Currently, section 202.06 of the
Manual requires listed companies to
notify the Exchange at least ten minutes
in advance of releasing material news if
such release will take place shortly
before the opening of trading on the
Exchange or during Exchange market
hours (the ‘‘Material News Policy’’).4
The Exchange proposes to amend
section 202.06 to require companies to
comply with the Material News Policy
between 7:00 a.m. and 4:00 p.m. Eastern
Time. In the Exchange’s experience,
most companies release news related to
corporate actions and other material
events between 7:00 a.m. and 9:30 a.m.
Although trading on the Exchange does
not begin until 9:30 a.m., the Exchange
believes that material news released
between 7:00 a.m. and 9:30 a.m. has the
potential to cause volatility in both
price and volume during pre-market
trading that occurs on other market
centers as well as once trading opens on
the Exchange. However, because there is
a lower volume of trading in such premarket hours, the Exchange believes
that a listed company is most well
positioned to determine whether a
trading halt is appropriate given the
news it intends to release. Therefore, to
facilitate an orderly opening and ensure
thorough dissemination of material
news, the Exchange believes it is
beneficial to require companies to
comply with the Material News Policy
3 The Exchange considers material news to be any
news that is reasonably likely to have a material
impact on the price or trading volume of a listed
security.
4 At the time section 202.06 of the Manual was
last amended, the Exchange had an off-hours
trading session in which securities could be traded
at Exchange closing prices after the Exchange’s 4:00
p.m. close until 5:00 p.m. As such off-hour trading
session no longer exists, the Exchange proposes to
amend Section 202.06 of the Manual to specify that
the Exchange’s market hours end at 4:00 p.m.
Eastern Time.
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]]>Agencies
[Federal Register Volume 80, Number 174 (Wednesday, September 9, 2015)]
[Notices]
[Pages 54357-54362]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-22604]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-75811; File No. SR-NYSEArca-2015-01]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
of Amendment No. 1 to Proposed Rule Change To Amend NYSE Arca Equities
Rule 5.2(j)(3), Commentary .02 Relating to Listing of Investment
Company Units Based on Municipal Bond Indexes
September 2, 2015.
On January 16, 2015, NYSE Arca, Inc. (``Exchange'') filed with the
Securities and Exchange Commission (``Commission''), pursuant to
section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'' or
``Exchange Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule
change to amend NYSE Arca Equities Rule 5.2(j)(3), Commentary .02
relating to the listing of Investment Company Units based on municipal
bond indexes. The proposed rule change was published for comment in the
Federal Register on February 4, 2015.\3\ On March 19, 2015, pursuant to
section 19(b)(2) of the Act,\4\ the Commission designated a longer
period within which to approve the proposed rule change, disapprove the
proposed rule change, or institute proceedings to determine whether to
disapprove the proposed rule change.\5\ On May 4, 2015, the Commission
published an order instituting proceedings under section 19(b)(2)(B) of
the Act \6\ to determine whether to approve or disapprove the proposed
rule change.\7\ On July 30, 2015, the Commission issued a notice of
designation of a longer period for Commission action on proceedings to
determine whether to approve or disapprove the proposed rule change.\8\
The Commission has 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. 74175 (Jan. 29,
2015), 80 FR 6150 (``Notice'').
\4\ 15 U.S.C. 78s(b)(2).
\5\ See Securities Exchange Act Release No. 74534, 80 FR 15834
(Mar. 25, 2015). The Commission designated a longer period within
which to take action on the proposed rule change and designated May
5, 2015, as the date by which it should approve, disapprove, or
institute proceedings to determine whether to disapprove the
proposed rule change.
\6\ 15 U.S.C. 78s(b)(2)(B).
\7\ See Securities Exchange Act Release No. 74863 (May 4, 2015),
80 FR 26591 (May 8, 2015) (``Order Instituting Proceedings'').
Specifically, the Commission instituted proceedings to allow for
additional analysis of the proposed rule change's consistency with
Section 6(b)(5) of the Act, which requires, among other things, that
the rules of a national securities exchange be ``designed to prevent
fraudulent and manipulative acts and practices, to promote just and
equitable principles of trade,'' and ``to protect investors and the
public interest.'' See id.
\8\ See Securities Exchange Act Release No. 75569, 80 FR 46627
(Aug. 5, 2015). The Commission designated a longer period within
which to take action on the proposed rule change and designated
October 2, 2015 as the date by which it should approve or disapprove
the proposed rule change.
---------------------------------------------------------------------------
Pursuant to section 19(b)(1) \9\ of the Act \10\ and Rule 19b-4
thereunder,\11\ notice is hereby given that, on August 28, 2015, the
Exchange filed with the Commission Amendment No. 1 to the proposed rule
change as described in Items I and II below, which Items have been
prepared by the Exchange.\12\ The
[[Page 54358]]
Commission is publishing this notice to solicit comments from
interested persons on the proposed rule change, as modified by
Amendment No. 1.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(1).
\10\ 15 U.S.C. 78a.
\11\ 17 CFR 240.19b-4.
\12\ Amendment No. 1 replaces SR-NYSEArca-2015-01 as originally
filed and supersedes such filing in its entirety. In Amendment No.
1, the Exchange proposes to amend NYSE Arca Equities Rule 5.2(j)(3),
Commentary .02(a)(2) to add the following criteria for listing on
the Exchange, pursuant to Rule 19b-4(e) under the Act, of a series
of Investment Company Units based on an index or portfolio of only
municipal bond components: (1) 75% of the weight of the index or
portfolio shall be issued in an offering with an aggregate size, as
set forth in the official statement of the offering, of $100 million
or more; (2) the average dollar amount outstanding of components of
the index or portfolio shall be at least $10 million; (3) each
component of the index or portfolio shall have a minimum principal
amount outstanding of at least $2 million; (4) the index or
portfolio must include at least 1,000 components; and (5) the index
or portfolio must include a minimum of 13 non-affiliated issuers.
Additionally, in Amendment No. 1, the Exchange proposes to remove
municipal securities from the exempted securities excluded from the
criterion in NYSE Arca Equities Rule 5.2(j)(3), Commentary .02(a)(5)
that an underlying index or portfolio (excluding one consisting
entirely of exempted securities) must include a minimum of 13 non-
affiliated issuers. In Amendment No. 1, the Exchange also describes
the bases for its proposed changes to the criteria in NYSE Arca
Equities Rule 5.2(j)(3), Commentary .02; explains that the proposed
criteria in proposed Commentary .02(a)(2)(B)(ii)-(v) would
facilitate the generic listing of funds based on municipal bond
index components that are sufficiently broad-based and liquid to
deter manipulation; and makes technical changes to the filing.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend NYSE Arca Equities Rule 5.2(j)(3),
Commentary .02 relating to listing of Investment Company Units based on
municipal bond indexes. 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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
NYSE Arca Equities Rule 5.2(j)(3) permits the listing and trading,
including trading pursuant to unlisted trading privileges (``UTP''), of
Investment Company Units (``Units'').\13\ NYSE Arca Equities Rule
5.2(j)(3), Commentary .02 provides for listing on the Exchange pursuant
to Rule 19b-4(e) \14\ under the Act of a series of Units with an
underlying index or portfolio of Fixed Income Securities \15\ meeting
specified criteria.\16\ These ``generic'' listing criteria permit
listing and trading on the Exchange of series of Units meeting such
criteria without Commission approval of each individual product
pursuant to Section 19(b)(2) of the Act.\17\
---------------------------------------------------------------------------
\13\ An Investment Company Unit is a security that represents an
interest in a registered investment company that holds securities
comprising, or otherwise based on or representing an interest in, an
index or portfolio of securities (or holds securities in another
registered investment company that holds securities comprising, or
otherwise based on or representing an interest in, an index or
portfolio of securities). See NYSE Arca Equities Rule 5.2(j)(3)(A).
\14\ 17 CFR 240.19b-4(e).
\15\ Fixed Income Securities are described in NYSE Arca Equities
Rule 5.2(j)(3), Commentary .02 as debt securities that are notes,
bonds, debentures or evidence of indebtedness that include, but are
not limited to, U.S. Department of Treasury securities, government-
sponsored entity securities, municipal securities, trust preferred
securities, supranational debt and debt of a foreign country or a
subdivision thereof.
\16\ The Commission approved NYSE Arca Equities Rule 5.2(j)(3),
Commentary .02 in Securities Exchange Act Release No. 55783 (May 17,
2007), 72 FR 29194 (May 24, 2007) (SR-NYSEArca-2007-36) (order
approving generic listing standards for series of Units based on
Fixed Income Indexes and Combination Indexes). The Commission also
approved generic listing standards for the American Stock Exchange
LLC (``Amex'') for Index Fund Shares based on Fixed Income Indexes
and Combination Indexes in Securities Exchange Act Release No. 55437
(March 9, 2007), 72 FR 12233 (March 15, 2007) (SR-Amex-2006-118).
The Commission has approved listing of exchange-traded funds based
on a fixed income index or portfolio. See, e.g., Securities Exchange
Act Release No. 48534 (September 24, 2003), 68 FR 56353 (September
30, 2003) (SR-Amex-2003-75) (order approving listing on Amex of
eight series of iShares Lehman Bond Funds).
\17\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------
NYSE Arca Equities Rule 5.2(j)(3), Commentary .02(a)(2) provides
that, in order to be listed and traded pursuant to Rule 19b-4(e),
components of an index or portfolio that in aggregate account for at
least 75% of the weight of the index or portfolio each shall have a
minimum original principal amount outstanding of $100 million or
more.\18\ The Exchange proposes to amend its generic listing criteria
applicable to Units to better apply to the listing of Units based on
indexes that include municipal bonds because the features of such bonds
differ from those of most other Fixed Income Securities.\19\
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\18\ This Amendment No. 1 to SR-NYSEArca-2015-01 replaces SR-
NYSEArca-2015-01 as originally filed and supersedes such filing in
its entirety.
\19\ The Commission previously has approved proposed rule
changes relating to listing and trading on the Exchange of Units
based on municipal bond indexes. See Securities Exchange Act Release
Nos. 67985 (October 4, 2012), 77 FR 61804 (October 11, 2012) (SR-
NYSEArca-2012-92) (order approving proposed rule change relating to
the listing and trading of iShares 2018 S&P AMT-Free Municipal
Series and iShares 2019 S&P AMT-Free Municipal Series under NYSE
Arca Equities Rule 5.2(j)(3), Commentary .02); 67729 (August 24,
2012), 77 FR 52776 (August 30, 2012) (SR-NYSEArca-2012-92) (notice
of proposed rule change relating to the listing and trading of
iShares 2018 S&P AMT-Free Municipal Series and iShares 2019 S&P AMT-
Free Municipal Series under NYSE Arca Equities Rule 5.2(j)(3),
Commentary .02) (``iShares 2018 Notice''); 72523, (July 2, 2014), 79
FR 39016 (July 9, 2014) (SR-NYSEArca-2014-37) (order approving
proposed rule change relating to the listing and trading of iShares
2020 S&P AMT-Free Municipal Series under NYSE Arca Equities Rule
5.2(j)(3), Commentary .02); 72172 (May 15, 2014), 79 FR 29241 (May
21, 2014) (SR-NYSEArca-2014-37) (notice of proposed rule change
relating to the listing and trading of iShares 2020 S&P AMT-Free
Municipal Series under NYSE Arca Equities Rule 5.2(j)(3), Commentary
.02) (``iShares 2020 Notice''); 72464 (June 25, 2014), 79 FR 37373
(July 1, 2014) (File No. SR-NYSEArca-2014-45) (order approving
proposed rule change governing the continued listing and trading of
shares of the PowerShares Insured California Municipal Bond
Portfolio, PowerShares Insured National Municipal Bond Portfolio,
and PowerShares Insured New York Municipal Bond Portfolio)
(``PowerShares Order''); 75468 (July 16, 2015), 80 FR 43500 (July
22, 2015) (SR-NYSEArca-2015-25) (order approving proposed rule
change relating to the listing and trading of iShares iBonds Dec
2021 AMT-Free Muni Bond ETF and iShares iBonds Dec 2022 AMT-Free
Muni Bond ETF under NYSE Arca Equities Rule 5.2(j)(3))(``iShares
2021/2022 Order''); 74730 (April 15, 2015), 76 FR 22234 (April 21,
2015) (notice of proposed rule change relating to the listing and
trading of iShares iBonds Dec 2021 AMT-Free Muni Bond ETF and
iShares iBonds Dec 2022 AMT-Free Muni Bond ETF under NYSE Arca
Equities Rule 5.2(j)(3), Commentary .02) (``iShares 2021/2022
Notice''); 74730 [sic] 75376 (July 7, 2015), 80 FR 40113 (July 13,
2015) (SR-NYSEArca-2015-18) (order approving proposed rule change
relating to the listing and trading of Vanguard Tax-Exempt Bond
Index Fund under NYSE Arca Equities Rule 5.2(j)(3)). The Commission
also has issued a notice of filing and immediate effectiveness of a
proposed rule change relating to listing and trading on the Exchange
of shares of the iShares Taxable Municipal Bond Fund. See Securities
Exchange Act Release No. 63176 (October 25, 2010), 75 FR 66815
(October 29, 2010) (SR-NYSEArca-2010-94). The Commission has
approved for Exchange listing and trading of shares of two actively
managed funds of the PIMCO ETF Trust that principally hold municipal
bonds. See Securities Exchange Act Release No. 60981 (November 10,
2009), 74 FR 59594 (November 18, 2009) (SR-NYSEArca-2009-79) (order
approving listing and trading of shares of the PIMCO Short-Term
Municipal Bond Strategy Fund and PIMCO Intermediate Municipal Bond
Strategy Fund). The Commission also has approved listing and trading
on the Exchange of shares of the SPDR Nuveen S&P High Yield
Municipal Bond Fund under Commentary .02 of NYSE Arca Equities Rule
5.2(j)(3). See Securities Exchange Act Release No. 63881 (February
9, 2011), 76 FR 9065 (February 16, 2011) (SR-NYSEArca-2010-120).
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[[Page 54359]]
The Exchange proposes to amend NYSE Arca Equities Rule 5.2(j)(3),
Commentary .02(a)(2) to provide an alternative for Units based on an
index or portfolio of municipal bond securities to the criterion that
components that in the aggregate account for 75% of the weight of the
index or portfolio have a minimum original principal amount outstanding
of $100 million or more. Specifically, the Exchange proposes that, with
respect to an index or portfolio of only municipal bond components, the
index or portfolio shall meet the following criteria:
75% of the weight of the index or portfolio shall be
issued in an offering with an aggregate size, as set forth in the
official statement of the offering, of $100 million or more (the ``75%
Requirement'');
the average dollar amount outstanding of components of the
index or portfolio shall be at least $10 million;
each component of the index or portfolio shall have a
minimum principal amount outstanding of at least $2 million;
the index or portfolio must include at least 1,000
components; and
the index or portfolio must include a minimum of 13 non-
affiliated issuers.
With respect to proposed Commentary .02(a)(2)(B)(i), the Exchange
believes it is appropriate to calculate components of a municipal bond
index differently from other Fixed Income Securities for purposes of
the 75% weighting requirement because municipal bond offerings differ
from U.S. Treasury, Government Sponsored Entities (``GSEs''), or other
fixed income offerings in a variety of ways. Principally, municipal
bonds are issued with either ``serial'' or ``term'' maturities or some
combination thereof. The official statement issued in connection with a
municipal bond offering describes the terms of the component bonds and
the issuer and/or obligor on the related bonds. Such an offering is
comprised of a number of specific maturity sizes and is based on a
specified project or group of projects and funded by the same revenue
or other funding sources identified in the official statement.\20\ The
entire issue or offering that includes such maturity sizes (sometimes
also referred to as the ``deal size'') receives the same credit rating
and the various maturities are all subject to the provisions set forth
in the official statement.\21\
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\20\ There are two principal types of municipal bonds--general
obligation, which are issued to raise capital supported by the
taxing power of the issuer, and revenue bonds, which fund projects
supported by the income these projects generate. Multiple maturities
allow municipal bond issuers to better match and manage the timing
of revenues and expenses associated with municipal bond offerings
and projects financed thereby, and allow issuers to reduce their
cost of funding over time. This is especially important given the
long-term nature of the projects that secure municipal bond
offerings and intermittent cash flows generated from the projects or
other revenue sources. The issuer is able to pay down the municipal
bond offering, lowering the amount outstanding, and thereby paying
less interest over the life of the issue in contrast to an issue
with a term maturity.
\21\ Financial information vendors provide deal size as well as
maturity size.
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Because the individual municipal bond components of an index may
predominantly have an original principal amount outstanding of less
than $100 million (although part of a municipal bond offering of $100
million or greater), NYSE Arca Equities Rule 5.2(j)(3), Commentary .02
would not generally permit listing under Rule 19b-4(e) of Units based
on a municipal bond index. The Exchange believes the proposed amendment
to Commentary .02(a)(2) would facilitate listing of Units based on
municipal bond indexes by permitting the Exchange, in applying its
generic listing criteria, to take into account the aggregate size of
the municipal bond offering, as set forth in the applicable official
statement, of which an index or portfolio component is part.
The Exchange notes that major municipal bond indexes, while they
include individual bond maturities as index components, include ``deal
size'' as a factor in the criteria for index constituents and
additions. For example, the index methodology for the S&P National AMT-
Free Municipal Bond Index specifies that each bond must be a
constituent of a deal where the deal's original offering amount was at
least $100 million.\22\ In addition, for Barclays Capital municipal
bond indexes, the index methodology for the Barclays Capital
Investment-Grade Municipal Index specifies that a bond in the index
must be issued as part of a transaction of at least $75 million; and
for the Barclays Capital High-Yield Municipal Index and the Barclays
Capital Enhanced State Specific Indices, the bond constituents must be
issued as part of a transaction of at least $20 million.\23\
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\22\ Source: Standard & Poor's, available at
www.us.spindices.com.
\23\ Source: Barclays Capital Municipal Index Research.
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The Commission previously has approved listing and trading of Units
where the applicable municipal index components did not individually
meet the 75% percentage requirement of NYSE Arca Equities Rule
5.2(j)(3), Commentary .02(a)(2)(A).\24\ As stated in the iShares 2020
Notice, for example, the investment adviser (Blackrock Fund Advisors or
``BFA'') for the iShares 2020 S&P AMT-Free Municipal Series has
represented that the nature of the municipal bond market and municipal
bond instruments makes it feasible to categorize individual issues
represented by CUSIPs (i.e., the specific identifying number for a
security) into categories according to common characteristics--
specifically, rating, purpose, geographical region, and maturity. BFA
represented that bonds that share similar characteristics tend to trade
similarly to one another; therefore, within these categories, the
issues may be considered fungible from a portfolio management
perspective, allowing one CUSIP to be represented by another that
shares similar characteristics for purposes of developing an investment
strategy.\25\ Therefore, while a relatively low percentage of the
weight of the applicable index components may be part of an aggregate
size offering of $100 million or more, the nature of the municipal bond
market makes such components relatively fungible for investment
purposes when aggregated into categories such as ratings, purpose,
geographical region, and maturity. In addition, BFA represented that,
within a single municipal bond issuer, there are often multiple
contemporaneous or sequential issuances that have the same rating,
structure and maturity, but have different CUSIPs; these separate
issues by the same issuer are also likely to trade similarly to one
another. Individual CUSIPs within the applicable municipal bond index
that share characteristics with other CUSIPs based on rating, purpose,
geographical region, and maturity have a high yield to maturity
correlation, and frequently have a correlation of one or close to one.
Such correlation demonstrates that the CUSIPs within their respective
category behave similarly.
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\24\ See note 19, supra.
\25\ See also iShares 2021/2022 Notice, note 19, supra.
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Likewise, as noted above, the individual maturity sizes that
comprise a municipal bond offering share a number of important
features, including credit rating and the purpose and terms of the
offering as set forth in the applicable official statement. As with
individual CUSIPs in an index that share certain characteristics, as
described above, the individual maturity sizes comprising the municipal
bond offering can be expected to be
[[Page 54360]]
relatively fungible for investment purposes. The Exchange believes that
the proposed rule change is reasonable and appropriate in that pricing
and liquidity of such maturity sizes is predominately based on the
common characteristics of the aggregate issue of which the municipal
bond is part. Thus, consideration of the aggregate size of the
municipal bond offering rather than the individual bond component does
not raise concerns regarding pricing or liquidity of the applicable
municipal bond index components or of the Units overlying the
applicable index.
With respect to the criteria in proposed Commentary
.02(a)(2)(B)(ii) through (v), the Exchange believes such criteria would
limit generic listing of funds based on municipal bond index components
that are sufficiently broad-based and liquid to deter potential
manipulation of the Units. In particular, the proposed requirement that
the average dollar amount outstanding of components be at least $10
million is comparable to the average dollar amount outstanding for
index components of municipal bond indexes underlying funds previously
approved by the Commission for Exchange trading.\26\ The Exchange, in
proposing the listing of these other funds, believed they would not be
readily susceptible to manipulation and such funds are currently
trading in a fair and orderly manner. Similarly, the proposed
requirements that each component have a minimum principal amount
outstanding of at least $2 million, combined with the 75% Requirement,
would assure that individual maturities within an index or portfolio be
of substantial size. The substantial size of a large proportion of
components in the index or portfolio further deters the susceptibility
of the Units to manipulation. Finally, the proposed requirement that an
index or portfolio include at least 1,000 components and include a
minimum of 13 non-affiliated issuers is comparable to the number of
index components of municipal bond indexes underlying funds previously
approved by the Commission for Exchange trading \27\ and the current
requirement in Commentary .02(a)(5).\28\ These requirements would
effectively require that index or portfolio components have a total
dollar amount outstanding of at least $10 billion, which, would limit
listing of Units under the [sic] Rule 19b-4(e) to those based on
underlying indexes of substantial size and multiple securities.
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\26\ See, e.g., 2021/2022 Order and PowerShares Order, note 19,
supra.
\27\ See, e.g., PowerShares Order, note 19, supra.
\28\ The Exchange notes that an index or portfolio underlying a
series of Units also would be required to meet the requirement of
NYSE Arca Equities Rule 5.2(j)(3), Commentary .02(a)(4) that ``[n]o
component fixed-income security (excluding Treasury Securities and
GSE Securities) shall represent more than 30% of the weight of the
index or portfolio, and the five most heavily weighted component
fixed-income securities in the index or portfolio shall not in the
aggregate account for more than 65% of the weight of the index or
portfolio''.
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In addition, because the Exchange's proposed alternative listing
criteria for Units based on municipal bond indexes or portfolios would
require a minimum of 13 non-affiliated issuers, the Exchange proposes
to change NYSE Arca Equities Rule 5.2(j)(3), Commentary .02(a)(5) \29\
so that municipal securities could not be among the exempted securities
in an index or portfolio underlying a Unit that is not subject to the
minimum 13 non-affiliated issuer requirement.
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\29\ NYSE Arca Equities Rule 5.2(j)(3), Commentary .02(a)(5)
provides that an underlying index or portfolio (excluding one
consisting entirely of exempted securities) must include a minimum
of 13 non-affiliated issuers. Municipal securities are exempted
securities under Section 3(a)(12)(A) of the Act.
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2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with section 6(b) \30\ of the Act, in general, and furthers the
objectives of section 6(b)(5),\31\ in particular, in that it is
designed to prevent fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in facilitating transactions in
securities, and to remove impediments to and perfect the mechanisms of
a free and open market and a national market system, and, in general,
to protect investors and the public interest.
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\30\ 15 U.S.C. 78f(b).
\31\ 15 U.S.C. 78f(b)(5).
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The Exchange believes that the proposed rule change applicable to
trading pursuant to generic listing and trading criteria, together with
the Exchange's surveillance procedures applicable to trading in the
securities covered by the proposed rules, serve to foster investor
protection. The proposed rule change would also enhance market
competition by assisting in bringing issues of Units with an underlying
index of municipal securities to market more quickly, consistent with
the Commission's adoption of Rule 19b-4(e) under the Act.
The Commission has previously approved proposed rule changes
relating to listing and trading on the Exchange of Units based on
municipal bond indexes and issues of Managed Fund Shares that hold
municipal bonds.\32\ With respect to proposed Commentary
.02(a)(2)(B)(i), the Exchange notes that major municipal bond indexes,
while they include individual bond maturities as index components,
include ``deal size'' as a factor in the criteria for index
constituents and additions. As noted above, municipal bonds that share
similar characteristics tend to trade similarly to one another;
therefore, within these categories, the issues may be considered
fungible from a portfolio management perspective, allowing one CUSIP to
be represented by another that shares similar characteristics for
purposes of developing an investment strategy.\33\ Therefore, while a
relatively low percentage of the weight of the applicable index
components may be part of an offering with an aggregate size of $100
million or more, the nature of the municipal bond market makes such
components relatively fungible for investment purposes when aggregated
into categories such as ratings, purpose, geographical region, and
maturity. As with individual CUSIPs in an index that share certain
characteristics, as described above, the individual maturity sizes
comprising a municipal bond offering can be expected to be relatively
fungible for investment purposes. The Exchange believes that the
proposed rule change is reasonable and appropriate in that pricing and
liquidity of such maturity sizes is predominately based on the common
characteristics of the municipal bond offering of which the municipal
bond component is part. Thus, consideration of the municipal bond
offering rather than the individual bond component does not raise
concerns regarding pricing or liquidity of the applicable municipal
bond index components or of the Units overlying the applicable index.
In addition, financial information vendors provide deal size, as well
as maturity size information, for each municipal bond issue.
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\32\ See note 19, supra.
\33\ See iShares 2018 Notice, iShares 2020 Notice and iShares
2021/2022 Notice, note 19, supra.
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The Exchange believes that the proposed rule change is designed to
prevent fraudulent and manipulative acts and practices in that Units
based on an index or portfolio that includes municipal bond components
would be listed and traded on the Exchange pursuant to the initial and
continued listing criteria in NYSE Arca Equities Rule 5.2(j)(3). The
proposed amendment to NYSE Arca Equities Rule 5.2(j)(3), Commentary
.02(a)(2) would better accommodate listing of Units based on
[[Page 54361]]
indexes that include municipal bonds, in view of features of such bonds
that differ from those of most other Fixed Income Securities. In
connection with establishing compliance with NYSE Arca Equities Rule
5.2(j)(3), Commentary .02(a)(2), for an index or portfolio of municipal
bond components that does not meet the requirement that components that
in the aggregate account for least 75% of the weight of the index or
portfolio each shall have a minimum original principal amount
outstanding of $100 million or more, individual municipal bond
components in an index or portfolio would be required to be part of an
offering of substantial size (i.e., at least $100 million aggregate
size). The Exchange believes that the $100 million minimum threshold
would help ensure that a substantial percentage of the applicable index
components are liquid. The proposed requirement that the average dollar
amount outstanding of components be at least $10 million is comparable
to the average dollar amount outstanding for index components of
municipal bond indexes underlying funds previously approved by the
Commission for Exchange trading.\34\
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\34\ See, e.g., 2021/2022 Order and PowerShares Order, note 19,
supra.
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The proposed requirement that that [sic] each component have a
minimum principal amount outstanding of at least $2 million, combined
with the 75% Requirement, would assure that individual maturities
within an index or portfolio be of substantial size. The proposed
requirement that an index or portfolio include at least 1,000
components is comparable to the number of index components of municipal
bond indexes underlying funds previously approved by the Commission for
Exchange trading.\35\ Such requirement would effectively require that
index or portfolio components have a total dollar amount outstanding of
at least $10 billion, which would facilitate listing of Units based on
underlying indexes of substantial size. The proposed requirement that
an index or portfolio include a minimum of 13 non-affiliated issuers,
which is based on the existing requirement in Commentary .02(a)(5),
would facilitate generic listing of Units that are diversified and
broad-based.
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\35\ See, e.g., PowerShares Order, note 19, supra.
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Finally, the proposed amendment to NYSE Arca Equities Rule
5.2(j)(3), Commentary .02(a)(5) to exclude municipal securities from
the types of exempted securities in an index or portfolio that is
excepted from the requirement that an index or portfolio underlying a
Unit have at least 13 non-affiliated issuers would require that the
index or portfolio include a minimum of 13 non-affiliated issuers as
set forth in proposed Commentary .02(a)(2)(B)(v).
The proposed rule change is designed to perfect the mechanism of a
free and open market and, in general, to foster cooperation and
coordination with persons engaged in facilitating transactions in
securities, and to remove impediments to and perfect the mechanisms of
a free and open market and a national market system, and, in general,
to protect investors and the public interest in that it would
facilitate the listing and trading of additional types of exchange-
traded funds that hold municipal bonds pursuant to the generic listing
criteria of NYSE Arca Equities Rule 5.2(j)(3), Commentary .02, and thus
would enhance competition among market participants, to the benefit of
investors and the marketplace. The Exchange is proposing to modify the
criteria for qualifying Units based on a Fixed Income Securities index
or portfolio that includes municipal bond components by applying the
same quantitative threshold (i.e., $100 million or more) to the
aggregate size of the municipal bond offering as the threshold that
applies to component Fixed Income Securities generally, as set forth in
current Rule 5.2(j)(3), Commentary .02(a)(2). The Exchange believes
that applying the $100 million threshold to the aggregate size of the
municipal bond offering rather than to individual maturities of the
offering is appropriate in view of differences in the characteristics
of municipal bond issuances from issuances of other Fixed Income
Securities, as described above, while, at the same time, assuring that
any individual municipal bond component is part of an offering of
substantial size (i.e., at least $100 million aggregate size). In
addition, the Exchange believes that the proposed criteria in proposed
Commentary .02(a)(2)(B)(ii) through (v) would facilitate generic
listing of funds based on municipal bond index components that are
sufficiently broad-based and liquid to deter potential manipulation.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change would
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The proposed rule change is
not intended to address competition among exchanges. The Exchange
believes that the proposed rule change would remove a burden on
competition for issuers of municipal bond offerings to provide that the
Exchange's rules regarding the listing and trading of Units pursuant to
Commentary .02 of Rule 5.2(j)(3) are evaluated on a similar basis to
other fixed income offerings. As discussed above, because the ``deal
size'' associated with a municipal bond offering is deemed the relevant
basis for determining pricing and liquidity of maturity sizes of
municipal bond components that comprise an index, the Exchange believes
that the proposed rule change addresses the unique characteristics of
municipal bond offerings as compared to other fixed income products in
a manner consistent with the existing requirements of Commentary
.02(a)(2) of Rule 5.2(j)(3).
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. 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, 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-2015-01 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSEArca-2015-01. 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
[[Page 54362]]
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 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 Number SR-NYSEArca -2015-01 and should be submitted on or before
September 21, 2015.\36\
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\36\ The Commission believes that a 10-day comment period is
reasonable, given the requirement that the Commission act on the
proposed rule change by October 2, 2015. A 10-day period will
provide adequate time for comment. See supra notes 7 and 8.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\37\
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\37\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-22604 Filed 9-8-15; 8:45 am]
BILLING CODE 8011-01-P
