Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Regarding the AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF's Holdings, 66085-66087 [2015-27344]
Download as PDF
Federal Register / Vol. 80, No. 208 / Wednesday, October 28, 2015 / Notices
effective pursuant to Section 19(b)(3)(A)
of the Act 14 and Rule 19b–4(f)(6)(iii)
thereunder.15
The Exchange has asked the
Commission to waive the 30-day
operative delay so that the proposal may
become operative immediately upon
filing. The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest, as it
will allow the obvious error pilot
program to continue uninterrupted
while the industry gains further
experience operating under the Plan,
and avoid any investor confusion that
could result from a temporary
interruption in the pilot program. For
this reason, the Commission designates
the proposed rule change to be operative
upon filing.16
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
ISEGemini–2015–22 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.
14 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6)(iii). As required under
Rule 19b–4(f)(6)(iii), the Exchange provided the
Commission with written notice of its intent to file
the proposed rule change, along with a brief
description and the text of the proposed rule
change, at least five business days prior to the date
of filing of the proposed rule change, or such
shorter time as designated by the Commission.
16 For purposes only of waiving the 30-day
operative delay, the Commission has also
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
mstockstill on DSK4VPTVN1PROD with NOTICES
15 17
VerDate Sep<11>2014
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Jkt 238001
All submissions should refer to File
Number SR–ISEGemini–2015–22. This
file number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549 on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–
ISEGemini–2015–22, and should be
submitted on or before November 18,
2015.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Brent J. Fields,
Secretary.
[FR Doc. 2015–27348 Filed 10–27–15; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–76224; File No. SR–
NYSEArca–2015–94]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Regarding the
AdvisorShares WCM/BNY Mellon
Focused Growth ADR ETF’s Holdings
17 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
Frm 00103
Fmt 4703
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to change a
representation regarding the
AdvisorShares WCM/BNY Mellon
Focused Growth ADR ETF’s holdings.
Shares of the WCM/BNY Mellon
Focused Growth ADR ETF have been
approved for listing and trading on the
Exchange under NYSE Arca Equities
Rule 8.600. The text of the proposed
rule change is available on the
Exchange’s Web site at www.nyse.com,
at the principal office of the Exchange,
and at the Commission’s Public
Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Commission has approved a
proposed rule change relating to listing
and trading on the Exchange of shares
(‘‘Shares’’) of the AdvisorShares WCM/
BNY Mellon Focused Growth ADR ETF
(the ‘‘Fund’’) under NYSE Arca Equities
Rule 8.600,4 which governs the listing
U.S.C. 78a.
CFR 240.19b–4.
4 See Securities Exchange Act Release No. 62502
(July 15, 2010), 75 FR 42471 (July 21, 2010) (SR–
NYSEArca–2010–57) (the ‘‘Prior Order’’). The
notice with respect to the Prior Order was
published in Securities Exchange Act Release No.
3 17
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
PO 00000
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on October
8, 2015, NYSE Arca, Inc. (the
‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with
the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the self-regulatory
organization. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
2 15
October 22, 2015.
1 15
66085
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Continued
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Federal Register / Vol. 80, No. 208 / Wednesday, October 28, 2015 / Notices
mstockstill on DSK4VPTVN1PROD with NOTICES
and trading of Managed Fund Shares.5
The Fund’s Shares are currently listed
and traded on the Exchange under
NYSE Arca Equities Rule 8.600.
The Shares are offered by
AdvisorShares Trust (the ‘‘Trust’’), a
statutory trust organized under the laws
of the State of Delaware and registered
with the Commission as an open-end
management investment company.6 The
investment adviser to the Fund is
AdvisorShares Investments, LLC (the
‘‘Adviser’’). WCM Investment
Management (‘‘WCM’’) is the subadviser and portfolio manager to the
Fund (‘‘Sub-Adviser’’).
According to the Registration
Statement, and as stated in the Prior
Release, the Fund’s investment objective
is long-term capital appreciation above
international benchmarks such as the
62344 (June 21, 2010), 75 FR 37498 (June 29, 2010)
(‘‘Prior Notice’’ and, together with the Prior Order,
the ‘‘Prior Release’’). The Exchange has filed a
proposed rule change pursuant to Rule 19b–4 under
the Act to provide that the Fund may invest in
securities outside of U.S. markets, and that not
more than 10% of the net assets of the Fund in the
aggregate invested in equity securities (excluding
non-exchange-traded investment company
securities) shall consist of equity securities whose
principal market is not a member of the Intermarket
Surveillance Group (‘‘ISG’’) or is a market with
which the Exchange does not have a comprehensive
surveillance sharing agreement. See Securities
Exchange Act Release No. 74271 (February 13,
2015), 80 FR 9301 (February 20, 2015) (SR–
NYSEArca–2015–06) (‘‘Second Prior Release’’). The
Exchange also has filed a proposed rule change
pursuant to Rule 19b–4 under the Act to provide
that the Fund will invest at least 80% of its total
assets in American Depositary Receipts (‘‘ADRs’’)
and other equity securities, including common and
preferred stock, warrants, convertible securities and
master limited partnerships, and that the Fund’s
portfolio will consist primarily of ADRs. See
Securities Exchange Act Release No. 75100 (June 3,
2015), 80 FR 32641 (June 9, 2015) (SR–NYSEArca–
2015–47) (‘‘Third Prior Release’’).
5 A Managed Fund Share is a security that
represents an interest in an investment company
registered under the Investment Company Act of
1940 (15 U.S.C. 80a–1) (‘‘1940 Act’’) organized as
an open-end investment company or similar entity
that invests in a portfolio of securities selected by
its investment adviser consistent with its
investment objectives and policies. In contrast, an
open-end investment company that issues
Investment Company Units, listed and traded on
the Exchange under NYSE Arca Equities Rule
5.2(j)(3), seeks to provide investment results that
correspond generally to the price and yield
performance of a specific foreign or domestic stock
index, fixed income securities index or combination
thereof.
6 The Trust is registered under the 1940 Act. On
November 1, 2014, the Trust filed with the
Commission an amendment to its registration
statement on Form N–1A under the Securities Act
of 1933 (15 U.S.C. 77a) and the 1940 Act relating
to the Fund (File Nos. 333–157876 and 811–22110)
(the ‘‘Registration Statement’’). The description of
the operation of the Trust and the Fund herein is
based, in part, on the Registration Statement. In
addition, the Commission has issued an order
granting certain exemptive relief to the Trust under
the 1940 Act. See Investment Company Act Release
No. 29291 (May 28, 2010) (File No. 812–13677)
(‘‘Exemptive Order’’).
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19:16 Oct 27, 2015
Jkt 238001
BNY Mellon Classic ADR Index and the
MSCI EAFE Index. WCM seeks to
achieve the Fund’s investment objective
by selecting a portfolio of U.S. traded
securities of non-U.S. organizations
included in the BNY Mellon Classic
ADR Index. The BNY Mellon Classic
ADR Index predominantly includes
ADRs and, in addition, includes other
Depositary Receipts (‘‘DRs’’), which
include Global Depositary Receipts
(‘‘GDRs’’), Euro Depositary Receipts
(‘‘Euro DRs’’) and New York Shares
(‘‘NYSs’’).7
The Prior Notice and the Second Prior
Release stated that the Fund’s portfolio
will typically have fewer than 30
companies. The Exchange proposes to
amend such statement in the Prior
Notice and the Second Prior Release to
provide that, going forward, the Fund’s
portfolio will typically have fewer than
40 companies. The Adviser and SubAdviser have represented that an
increase in the number of companies
typically included in the Fund’s
portfolio would provide the Fund with
additional investment opportunities to
permit the Fund to meet its investment
objective, as described above.
Except for the change described
above, all other representations made in
the Prior Release, the Second Prior
Release and the Third Prior Release
remain unchanged.8 The Fund will
continue to comply with all initial and
continued listing requirements under
NYSE Arca Equities Rule 8.600.
2. Statutory Basis
The basis under the Act for this
proposed rule change is the requirement
under Section 6(b)(5) 9 that an exchange
have rules that are designed to prevent
fraudulent and manipulative acts and
practices, to promote just and equitable
principles of trade, to remove
impediments to, and perfect the
mechanism of a free and open market
and, in general, to protect investors and
the public interest.
The Exchange believes that the
proposed rule change is designed to
prevent fraudulent and manipulative
7 According to the Registration Statement, DRs,
which include ADRs, GDRs, Euro DRs and NYSs,
are negotiable securities that generally represent a
non-U.S. company’s publicly traded equity or debt.
DRs may be purchased in the U.S. secondary
trading market. They may trade freely, just like any
other security, either on an exchange or in the overthe-counter market. Although typically
denominated in U.S. dollars, DRs can also be
denominated in Euros. DRs can trade on all U.S.
stock exchanges as well as on many European stock
exchanges.
8 See note 4, supra. All terms referenced but not
defined herein are defined in the Prior Release.
9 15 U.S.C. 78f(b)(5).
PO 00000
Frm 00104
Fmt 4703
Sfmt 4703
acts and practices in that the Shares are
listed and traded on the Exchange
pursuant to the initial and continued
listing criteria in NYSE Arca Equities
Rule 8.600. Except for the change
described above, all other
representations made in the Prior
Release, the Second Prior Release and
the Third Prior Release remain
unchanged. The Fund will continue to
comply with all initial and continued
listing requirements under NYSE Arca
Equities Rule 8.600.
The proposed rule change is designed
to promote just and equitable principles
of trade and to protect investors and the
public interest in that the net asset value
(‘‘NAV’’) per Share is calculated daily
and that the NAV and the Disclosed
Portfolio is made available to all market
participants at the same time. An
increase in the number of companies
typically included in the Fund’s
portfolio from 30 to 40 would further
diversify the Fund’s investments and
may decrease the susceptibility to
manipulation of the Shares’ price.
The proposed rule change is designed
to perfect the mechanism of a free and
open market and, in general, to protect
investors and the public interest. The
Adviser represents that the proposed
change, as described above, is consistent
with the Fund’s investment objective,
and will further assist the Adviser and
Sub-Adviser to achieve such investment
objective. Such an increase would
further the public interest by providing
the Fund with additional flexibility to
achieve long-term capital appreciation
above international benchmarks. An
increase in the number of companies
typically included in the Fund’s
portfolio from 30 to 40 would further
diversify the Fund’s investments and
may decrease the susceptibility to
manipulation of the Shares’ price.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purpose of the Act. The Exchange
believes the proposed rule change is
designed to allow the Fund to invest in
a broader range of non-U.S. equity
securities thereby helping the Fund to
achieve its investment objective, and
will enhance competition among issues
of Managed Fund Shares that invest in
non-U.S. equity securities.
E:\FR\FM\28OCN1.SGM
28OCN1
Federal Register / Vol. 80, No. 208 / Wednesday, October 28, 2015 / Notices
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the proposed rule change
does not (i) significantly affect the
protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 10 and Rule 19b–4(f)(6)
thereunder.11
The Exchange has asked the
Commission to waive the 30-day
operative delay so that the proposal may
become operative immediately upon
filing. The Exchange states that an
increase in the number of companies
typically included in the Fund’s
portfolio from 30 to 40 would further
diversify the Fund’s investments and
may decrease the susceptibility to
manipulation of the Shares’ price. For
that reason, the Commission believes
that waiver of the 30-day operative
delay is consistent with the protection
of investors and the public interest.
Therefore, the Commission designates
the proposed rule change to be operative
upon filing.12
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
NYSEArca-2015–94 on the subject line.
SECURITIES AND EXCHANGE
COMMISSION
Paper Comments
[Release No. 34–76233; File No. SR–BOX–
2015–34]
• Send paper comments in triplicate
to Brent J. Fields, Secretary, Securities
and Exchange Commission, 100 F Street
NE., Washington, DC 20549–1090.
All submissions should refer to File
Number SR–NYSEArca–2015–94. This
file number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Section, 100 F Street NE.,
Washington, DC 20549 on official
business days between 10 a.m. and 3
p.m. Copies of the filing will also be
available for inspection and copying at
the NYSE’s principal office and on its
Internet Web site at www.nyse.com. All
comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–NYSEArca–2015–94 and
should be submitted on or before
November 18, 2015.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Brent J. Fields,
Secretary.
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
[FR Doc. 2015–27344 Filed 10–27–15; 8:45 am]
11 17
mstockstill on DSK4VPTVN1PROD with NOTICES
10 15
BILLING CODE 8011–01–P
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). As required under Rule
19b–4(f)(6)(iii), the Exchange provided the
Commission with written notice of its intent to file
the proposed rule change, along with a brief
description and the text of the proposed rule
change, at least five business days prior to the date
of filing of the proposed rule change, or such
shorter time as designated by the Commission.
12 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
VerDate Sep<11>2014
19:16 Oct 27, 2015
Jkt 238001
66087
Self-Regulatory Organizations; BOX
Options Exchange LLC; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change To Amend
Interpretive Material 1 to Rule 7170 To
Extend the Pilot Program That
Suspends Certain Obvious Error
Provisions During Limit Up-Limit Down
States in Securities That Underlie
Options Traded on the Exchange
October 22, 2015.
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 October
21, 2015, BOX Options Exchange LLC
(the ‘‘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 self-regulatory organization. The
Commission is publishing this notice to
solicit comments on the proposed rule
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
The Exchange proposes to amend
Interpretive Material 1 to Rule 7170 to
extend the pilot program that suspends
certain obvious error provisions during
limit up-limit down states in securities
that underlie options traded on the
Exchange. The text of the proposed rule
change is available from the principal
office of the Exchange, at the
Commission’s Public Reference Room
and also on the Exchange’s Internet Web
site at https://boxexchange.com.
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 these statements may be examined at
the places specified in Item IV below.
The self-regulatory organization has
prepared summaries, set forth in
Sections A, B, and C below, of the most
significant aspects of such statements.
1 15
13 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00105
Fmt 4703
Sfmt 4703
2 17
E:\FR\FM\28OCN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
28OCN1
Agencies
[Federal Register Volume 80, Number 208 (Wednesday, October 28, 2015)]
[Notices]
[Pages 66085-66087]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-27344]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-76224; File No. SR-NYSEArca-2015-94]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Regarding the
AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF's Holdings
October 22, 2015.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that, on October 8, 2015, NYSE Arca, Inc. (the ``Exchange'' or
``NYSE Arca'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to change a representation regarding the
AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF's holdings. Shares
of the WCM/BNY Mellon Focused Growth ADR ETF have been approved for
listing and trading on the Exchange under NYSE Arca Equities Rule
8.600. The text of the proposed rule change is available on the
Exchange's Web site at www.nyse.com, at the principal office of the
Exchange, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Commission has approved a proposed rule change relating to
listing and trading on the Exchange of shares (``Shares'') of the
AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF (the ``Fund'')
under NYSE Arca Equities Rule 8.600,\4\ which governs the listing
[[Page 66086]]
and trading of Managed Fund Shares.\5\ The Fund's Shares are currently
listed and traded on the Exchange under NYSE Arca Equities Rule 8.600.
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 62502 (July 15,
2010), 75 FR 42471 (July 21, 2010) (SR-NYSEArca-2010-57) (the
``Prior Order''). The notice with respect to the Prior Order was
published in Securities Exchange Act Release No. 62344 (June 21,
2010), 75 FR 37498 (June 29, 2010) (``Prior Notice'' and, together
with the Prior Order, the ``Prior Release''). The Exchange has filed
a proposed rule change pursuant to Rule 19b-4 under the Act to
provide that the Fund may invest in securities outside of U.S.
markets, and that not more than 10% of the net assets of the Fund in
the aggregate invested in equity securities (excluding non-exchange-
traded investment company securities) shall consist of equity
securities whose principal market is not a member of the Intermarket
Surveillance Group (``ISG'') or is a market with which the Exchange
does not have a comprehensive surveillance sharing agreement. See
Securities Exchange Act Release No. 74271 (February 13, 2015), 80 FR
9301 (February 20, 2015) (SR-NYSEArca-2015-06) (``Second Prior
Release''). The Exchange also has filed a proposed rule change
pursuant to Rule 19b-4 under the Act to provide that the Fund will
invest at least 80% of its total assets in American Depositary
Receipts (``ADRs'') and other equity securities, including common
and preferred stock, warrants, convertible securities and master
limited partnerships, and that the Fund's portfolio will consist
primarily of ADRs. See Securities Exchange Act Release No. 75100
(June 3, 2015), 80 FR 32641 (June 9, 2015) (SR-NYSEArca-2015-47)
(``Third Prior Release'').
\5\ A Managed Fund Share is a security that represents an
interest in an investment company registered under the Investment
Company Act of 1940 (15 U.S.C. 80a-1) (``1940 Act'') organized as an
open-end investment company or similar entity that invests in a
portfolio of securities selected by its investment adviser
consistent with its investment objectives and policies. In contrast,
an open-end investment company that issues Investment Company Units,
listed and traded on the Exchange under NYSE Arca Equities Rule
5.2(j)(3), seeks to provide investment results that correspond
generally to the price and yield performance of a specific foreign
or domestic stock index, fixed income securities index or
combination thereof.
---------------------------------------------------------------------------
The Shares are offered by AdvisorShares Trust (the ``Trust''), a
statutory trust organized under the laws of the State of Delaware and
registered with the Commission as an open-end management investment
company.\6\ The investment adviser to the Fund is AdvisorShares
Investments, LLC (the ``Adviser''). WCM Investment Management (``WCM'')
is the sub-adviser and portfolio manager to the Fund (``Sub-Adviser'').
---------------------------------------------------------------------------
\6\ The Trust is registered under the 1940 Act. On November 1,
2014, the Trust filed with the Commission an amendment to its
registration statement on Form N-1A under the Securities Act of 1933
(15 U.S.C. 77a) and the 1940 Act relating to the Fund (File Nos.
333-157876 and 811-22110) (the ``Registration Statement''). The
description of the operation of the Trust and the Fund herein is
based, in part, on the Registration Statement. In addition, the
Commission has issued an order granting certain exemptive relief to
the Trust under the 1940 Act. See Investment Company Act Release No.
29291 (May 28, 2010) (File No. 812-13677) (``Exemptive Order'').
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According to the Registration Statement, and as stated in the Prior
Release, the Fund's investment objective is long-term capital
appreciation above international benchmarks such as the BNY Mellon
Classic ADR Index and the MSCI EAFE Index. WCM seeks to achieve the
Fund's investment objective by selecting a portfolio of U.S. traded
securities of non-U.S. organizations included in the BNY Mellon Classic
ADR Index. The BNY Mellon Classic ADR Index predominantly includes ADRs
and, in addition, includes other Depositary Receipts (``DRs''), which
include Global Depositary Receipts (``GDRs''), Euro Depositary Receipts
(``Euro DRs'') and New York Shares (``NYSs'').\7\
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\7\ According to the Registration Statement, DRs, which include
ADRs, GDRs, Euro DRs and NYSs, are negotiable securities that
generally represent a non-U.S. company's publicly traded equity or
debt. DRs may be purchased in the U.S. secondary trading market.
They may trade freely, just like any other security, either on an
exchange or in the over-the-counter market. Although typically
denominated in U.S. dollars, DRs can also be denominated in Euros.
DRs can trade on all U.S. stock exchanges as well as on many
European stock exchanges.
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The Prior Notice and the Second Prior Release stated that the
Fund's portfolio will typically have fewer than 30 companies. The
Exchange proposes to amend such statement in the Prior Notice and the
Second Prior Release to provide that, going forward, the Fund's
portfolio will typically have fewer than 40 companies. The Adviser and
Sub-Adviser have represented that an increase in the number of
companies typically included in the Fund's portfolio would provide the
Fund with additional investment opportunities to permit the Fund to
meet its investment objective, as described above.
Except for the change described above, all other representations
made in the Prior Release, the Second Prior Release and the Third Prior
Release remain unchanged.\8\ The Fund will continue to comply with all
initial and continued listing requirements under NYSE Arca Equities
Rule 8.600.
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\8\ See note 4, supra. All terms referenced but not defined
herein are defined in the Prior Release.
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2. Statutory Basis
The basis under the Act for this proposed rule change is the
requirement under Section 6(b)(5) \9\ that an exchange have rules that
are designed to prevent fraudulent and manipulative acts and practices,
to promote just and equitable principles of trade, to remove
impediments to, and perfect the mechanism of a free and open market
and, in general, to protect investors and the public interest.
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\9\ 15 U.S.C. 78f(b)(5).
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The Exchange believes that the proposed rule change is designed to
prevent fraudulent and manipulative acts and practices in that the
Shares are listed and traded on the Exchange pursuant to the initial
and continued listing criteria in NYSE Arca Equities Rule 8.600. Except
for the change described above, all other representations made in the
Prior Release, the Second Prior Release and the Third Prior Release
remain unchanged. The Fund will continue to comply with all initial and
continued listing requirements under NYSE Arca Equities Rule 8.600.
The proposed rule change is designed to promote just and equitable
principles of trade and to protect investors and the public interest in
that the net asset value (``NAV'') per Share is calculated daily and
that the NAV and the Disclosed Portfolio is made available to all
market participants at the same time. An increase in the number of
companies typically included in the Fund's portfolio from 30 to 40
would further diversify the Fund's investments and may decrease the
susceptibility to manipulation of the Shares' price.
The proposed rule change is designed to perfect the mechanism of a
free and open market and, in general, to protect investors and the
public interest. The Adviser represents that the proposed change, as
described above, is consistent with the Fund's investment objective,
and will further assist the Adviser and Sub-Adviser to achieve such
investment objective. Such an increase would further the public
interest by providing the Fund with additional flexibility to achieve
long-term capital appreciation above international benchmarks. An
increase in the number of companies typically included in the Fund's
portfolio from 30 to 40 would further diversify the Fund's investments
and may decrease the susceptibility to manipulation of the Shares'
price.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purpose of the Act. The Exchange believes the
proposed rule change is designed to allow the Fund to invest in a
broader range of non-U.S. equity securities thereby helping the Fund to
achieve its investment objective, and will enhance competition among
issues of Managed Fund Shares that invest in non-U.S. equity
securities.
[[Page 66087]]
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the proposed rule change does not (i) significantly affect
the protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative for 30
days from the date on which it was filed, or such shorter time as the
Commission may designate, the proposed rule change has become effective
pursuant to Section 19(b)(3)(A) of the Act \10\ and Rule 19b-4(f)(6)
thereunder.\11\
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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written
notice of its intent to file the proposed rule change, along with a
brief description and the text of the proposed rule change, at least
five business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission.
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The Exchange has asked the Commission to waive the 30-day operative
delay so that the proposal may become operative immediately upon
filing. The Exchange states that an increase in the number of companies
typically included in the Fund's portfolio from 30 to 40 would further
diversify the Fund's investments and may decrease the susceptibility to
manipulation of the Shares' price. For that reason, the Commission
believes that waiver of the 30-day operative delay is consistent with
the protection of investors and the public interest. Therefore, the
Commission designates the proposed rule change to be operative upon
filing.\12\
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\12\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-NYSEArca-2015-94 on the subject line.
Paper Comments
Send paper comments in triplicate to Brent J. Fields,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSEArca-2015-94. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Section, 100 F Street
NE., Washington, DC 20549 on official business days between 10 a.m. and
3 p.m. Copies of the filing will also be available for inspection and
copying at the NYSE's principal office and on its Internet Web site at
www.nyse.com. All comments received will be posted without change; the
Commission does not edit personal identifying information from
submissions. You should submit only information that you wish to make
available publicly. All submissions should refer to File Number SR-
NYSEArca-2015-94 and should be submitted on or before November 18,
2015.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-27344 Filed 10-27-15; 8:45 am]
BILLING CODE 8011-01-P