Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Changes to Certain Representations Relating to Five PIMCO Exchange-Traded Funds Currently Listed Under NYSE Arca Rule 8.600-E, 49046-49050 [2017-22885]

Download as PDF 49046 Federal Register / Vol. 82, No. 203 / Monday, October 23, 2017 / Notices cruise operations. The maximum number of camping participants would be 12. Camping would be away from vegetated sites and >150m from wildlife concentrations or lakes, protected areas, historical sites, and scientific stations. Tents would be pitched on snow, ice, or bare smooth rock, at least 15m from the high-water line. No food, other than emergency rations, would be brought onshore and all wastes, including human waste, would be collected and returned to the ship for proper disposal. The permit holder is seeking a waste permit modification to cover any accidental releases that may result from camping and other activities. Location: Antarctic Peninsula; For camping, possible locations include Dorian Cove, Enterprize Isand, Cuverville are/Errera Channel, Damoy ´ Point/Dorian Bay, Danco Island, Ronge Island, Paradise Bay, Argentine Islands, Andvord Bay, Pleneau Island, Hovgaard Island, Orne Harbour, Leith Cove, Prospect Point, Portal Point. Dates: December 1, 2017–February 6, 2021. Nadene G. Kennedy, Polar Coordination Specialist, Office of Polar Programs. [FR Doc. 2017–22944 Filed 10–20–17; 8:45 am] BILLING CODE 7555–01–P NATIONAL TRANSPORTATION SAFETY BOARD Sunshine Act Meeting 9:30 a.m., Tuesday, November 14, 2017. PLACE: NTSB Conference Center, 429 L’Enfant Plaza SW., Washington, DC 20594. STATUS: The one item is open to the public. MATTER TO BE CONSIDERED: 57150 Railroad Accident Report: Amtrak Train Collision with Maintenance-of-Way Equipment, Chester, Pennsylvania, April 3, 2016 NEWS MEDIA CONTACT: Telephone: (202) 314–6100. The press and public may enter the NTSB Conference Center one hour prior to the meeting for set up and seating. Individuals requesting specific accommodations should contact Rochelle McCallister at (202) 314–6305 or by email at Rochelle.McCallister@ ntsb.gov by Wednesday, November 7, 2017. The public may view the meeting via a live or archived webcast by accessing a link under ‘‘News & Events’’ on the NTSB home page at www.ntsb.gov. ethrower on DSK3G9T082PROD with NOTICES TIME AND DATE: VerDate Sep<11>2014 20:08 Oct 20, 2017 Jkt 244001 Schedule updates, including weatherrelated cancellations, are also available at www.ntsb.gov. FOR MORE INFORMATION CONTACT: Candi Bing at (202) 314–6403 or by email at bingc@ntsb.gov. FOR MEDIA INFORMATION CONTACT: Terry Williams at (202) 314–6100 or by email at terry.williams@ntsb.gov. and, collectively, the ‘‘Funds’’). Shares of the Funds are currently listed and traded on the Exchange under NYSE Arca Rule 8.600–E. 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. Thursday, October 19, 2017. Candi R. Bing, Federal Register Liaison Officer. 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. [FR Doc. 2017–23005 Filed 10–19–17; 11:15 am] BILLING CODE 7533–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–81890; File No. SR– NYSEArca–2017–120] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Changes to Certain Representations Relating to Five PIMCO Exchange-Traded Funds Currently Listed Under NYSE Arca Rule 8.600–E October 17, 2017. Pursuant to Section 19(b)(1) 1 of the Securities Exchange Act of 1934 (‘‘Act’’) 2 and Rule 19b–4 thereunder,3 notice is hereby given that, on October 5, 2017, NYSE Arca, Inc. (the ‘‘Exchange’’ or ‘‘NYSE Arca’’) 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 change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to reflect changes to certain representations made in the respective proposed rule changes previously filed with the Commission pursuant to Rule 19b–4 relating to the PIMCO Active Bond Exchange-Traded Fund, PIMCO Enhanced Low Duration Active Exchange-Traded Fund, PIMCO Short Term Municipal Bond Active Exchange-Traded Fund, PIMCO Intermediate Municipal Bond Active Exchange-Traded Fund, and PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (each a ‘‘Fund’’ 1 15 U.S.C. 78s(b)(1). U.S.C. 78a. 3 17 CFR 240.19b–4. 2 15 PO 00000 Frm 00076 Fmt 4703 Sfmt 4703 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 the listing and trading on the Exchange of shares (‘‘Shares’’) of the Funds, under NYSE Arca Rule 8.600–E (formerly NYSE Arca Equities Rule 8.600), which governs the listing and trading of Managed Fund Shares.4 The Shares are offered by PIMCO ETF 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.5 The investment manager to 4 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 Rule 5.2–E(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. 5 The Trust is registered under the 1940 Act. On October 28, 2016 the Trust filed with the Commission the most recent post-effective amendment to its registration statement under the Securities Act of 1933 (15 U.S.C. 77a) (‘‘1933 Act’’) and under the 1940 Act relating to the Funds (File Nos. 333–155395 and 811–22250) (the ‘‘Registration Statement’’). The description of the operation of the Trust and the Funds 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. 28993 E:\FR\FM\23OCN1.SGM 23OCN1 Federal Register / Vol. 82, No. 203 / Monday, October 23, 2017 / Notices the Funds is Pacific Investment Management Company LLC (‘‘PIMCO’’ or the ‘‘Adviser’’). The Funds’ Shares are currently listed and traded on the Exchange under NYSE Arca Rule 8.600– E. In this proposed rule change, the Exchange proposes to reflect changes to certain representations made in the respective proposed rule changes previously filed with the Commission pursuant to Rule 19b–4(e) relating to the Funds, as described below.6 ethrower on DSK3G9T082PROD with NOTICES PIMCO Active Bond Exchange-Traded Fund 7 The 2017 Bond Release stated that the Fund will primarily (under normal market circumstances, at least 65% of its total assets) invest in a diversified portfolio of Fixed Income Instruments of varying maturities, which may be represented by derivatives related to Fixed Income Instruments, but may invest up to 30% of its total assets in high yield Fixed Income Instruments (which may be represented by derivatives related to Fixed Income Instruments) rated B3 through Ba1 by Moody’s, or equivalently rated by S&P or Fitch, or, if unrated, determined by (November 10, 2009) (File No. 812–13571) (‘‘Exemptive Order’’). 6 The Adviser represents that it will manage the Funds in the manner described in the applicable proposed rule changes for the Funds referenced below, and will not implement the changes described herein until the proposed rule change is operative. 7 See Securities Exchange Act Release Nos. 65988 (December 16, 2011), 76 FR 79741 (December 22, 2011) (SR–NYSEArca–2011–95) (notice of filing of proposed rule change relating to Exchange listing and trading of shares of the PIMCO Total Return Exchange Traded Fund (now the PIMCO Active Bond Exchange Traded Fund)) (‘‘First Prior Bond Notice’’); 66321 (February 3, 2012), 77 FR 6850 (February 9, 2012) (SR–NYSEArca–2011–95) (order approving listing and trading of Shares of the Fund on the Exchange). See also Securities Exchange Act Release Nos. 70905 (November 20, 2013), 78 FR 70610 (November 26, 2013) (SR–NYSEArca–2013– 122) (notice of filing of proposed rule change relating to use of derivative instruments by the Fund); 72666 (July 24, 2014), 79 FR 44224 (July 30, 2014) (SR–NYSEArca–2013–122) (order approving proposed rule change relating to use of derivative instruments by the Fund; 73331 (October 9, 2014), 79 FR 62213 (October 16, 2014) (SR–NYSEArca– 2014–104) (notice of filing and immediate effectiveness of proposed rule change relating to use of derivatives by certain PIMCO exchange traded funds); 75475 (July 16, 2015), 80 FR 43507 (July 22, 2015) (SR–NYSEArca–2015–63) (notice of filing and immediate effectiveness of proposed rule change relating to a change in the size of a Creation Unit applicable to Shares of the Fund); 80534 (April 26, 2017), 82 FR 20525 (May 2, 2017) (SR–NYSEArca– 2017–41) (notice of filing and immediate effectiveness of proposed rule change to reflect changes in the name of, the investment objective for, and the means of achieving the investment objective applicable to the PIMCO Total Return Active Exchange-Traded Fund) (‘‘2017 Bond Release’’ and, together with the other releases referenced in this footnote, the ‘‘Prior Bond Releases’’). VerDate Sep<11>2014 20:08 Oct 20, 2017 Jkt 244001 PIMCO to be of comparable credit quality. The Adviser proposes to revise this representation to state that the Fund will primarily (under normal market circumstances, at least 65% of its total assets) invest in a diversified portfolio of Fixed Income Instruments of varying maturities, which may be represented by derivatives related to Fixed Income Instruments, and may invest in high yield Fixed Income Instruments (which may be represented by derivatives related to Fixed Income Instruments) of any credit quality.8 The 2017 Bond Release stated that the average portfolio duration of PIMCO Active Bond Exchange-Traded Fund normally will vary from zero to eight years based on PIMCO’s market forecasts. The Adviser proposes to revise this representation to state that the average portfolio duration of this Fund normally will vary from zero to nine years based on PIMCO’s market forecasts.9 The First Prior Bond Notice stated that the Fund may invest up to 15% of its total assets in securities and instruments that are economically tied 8 The Exchange notes that the Commission previously has approved the listing and trading of issues of Managed Fund Shares where there is not a specified limit to a fund’s holdings that may be in high yield bonds or a specified credit quality. See, e.g., Securities Exchange Act Release Nos. 75540 (July 28, 2015), 80 FR 46359 (August 4, 2015) (SR–NYSEArca–2015–50) (order approving listing and trading on the Exchange of shares of the Cambria Sovereign High Yield Bond ETF and Cambria Value and Momentum ETF under NYSE Arca Equities Rule 8.600); 77904 (May 25, 2016), 81 FR 35101 (June 1, 2016) (SR–NYSEArca–2016–17) (order approving proposed rule change to list and trade shares of the JPMorgan Diversified Alternative ETF under NYSE Arca Equities Rule 8.600). 9 The Exchange notes that the Commission has approved the listing and trading of other issues of Managed Fund Shares that have a duration range comparable to those proposed for the Fund. See, e.g., Securities Exchange Act Release Nos. 79293 (November 10, 2016), 81 FR 81189 (November 17, 2016) (SR–NYSEArca–2016–107) (order approving listing and trading of shares of Cumberland Municipal Bond ETF under NYSE Arca Equities Rule 8.600, which states that ‘‘At least 80% of the weight of the Fund’s assets will be in Municipal Bonds with a modified duration of 15 years or less’’); 71617 (February 26, 2014), 79 FR 12257 (March 4, 2014) (SR–NYSEArca–2013–135) (Order Granting Approval of Proposed Rule Change to List and Trade Shares of db-X Ultra-Short Duration Fund and db-X Managed Municipal Bond Fund under NYSE Arca Equities Rule 8.600, which states that ‘‘[a]lthough the [db-X Managed Municipal Bond Fund] may adjust duration of its holdings over a wider range, it generally intends to keep it between five and nine years’’); 77522 (April 5, 2016), 81 FR 21420 (April 11, 2016) (SR– NYSEArca–2015–125) (order approving proposed rule change to list and trade shares of the Riverfront Dynamic Unconstrained Income ETF and Riverfront Dynamic Core Income ETF under NYSE Arca Equities Rule 8.600, which states that ‘‘the SubAdviser intends to manage the [Riverfront Dynamic Unconstrained Income ETF’s] portfolio so that it has an average duration of between two and ten years, under normal circumstances’’). PO 00000 Frm 00077 Fmt 4703 Sfmt 4703 49047 to emerging market countries.10 The Adviser proposes to revise this representation to state that the Fund may invest in securities and instruments that are economically tied to emerging market countries. Thus, going forward, there would not be a specified limit in the Fund’s investments in emerging markets securities.11 The Adviser represents that the proposed changes to the Fund’s investments referenced above are consistent with the Fund’s investment objective, and will further assist the Adviser to achieve such investment objective. PIMCO Enhanced Low Duration Active Exchange-Traded Fund 12 The Prior Low Duration Notice stated that the Fund will invest primarily in investment grade debt securities, but may invest up to 10% of its total assets in high yield debt securities rated B to Ba by Moody’s, or equivalently rated by S&P or Fitch, or, if unrated, determined by PIMCO to be of comparable credit quality. The Adviser proposes to revise this representation to state that the Fund will invest primarily in investment grade debt securities, and may invest in 10 The First Prior Bond Notice stated that ‘‘[w]hile corporate debt securities and debt securities economically tied to an emerging market country generally must have $200 million or more par amount outstanding and significant par value traded to be considered as an eligible investment for the Fund, at least 80% of issues of such securities held by the Fund must have $200 million or more par amount outstanding.’’ This condition will continue to apply. 11 The Exchange notes that the Commission has approved the listing and trading of other issues of Managed Fund Shares for which there was not a specified limit in investments in foreign fixed income securities, which would include emerging markets securities. See, e.g., Securities Exchange Act Release Nos. 79683 (December 23, 2016) 81 FR 96539 (December 30, 2016) (SR–NYSEArca–2016– 82) (order approving proposed rule change to list and trade shares of the JPMorgan Diversified Event Driven ETF under NYSE Arca Equities Rule 8.600); 80657 (May 11, 2017) (SR–NYSEArca–2017–09) (order approving proposed rule change to list and trade shares of the Janus Short Duration Fund under NYSE Arca Equities Rule 8.600). 12 See Securities Exchange Act Release Nos. 70774 (October 30, 2013), 78 FR 66396 (November 5, 2013) (SR–NYSEArca–2013–106) (notice of filing of proposal relating to PIMCO Diversified Income Exchange-Traded Fund, PIMCO Low Duration Exchange-Traded Fund and PIMCO Real Return Exchange-Traded Fund) (‘‘Prior Low Duration Notice’’); 71125 (December 18, 2013), 78 FR 77743 (December 24, 2013) (SR–NYSEArca–2013–106) (order approving listing and trading of PIMCO Diversified Income Exchange-Traded Fund, PIMCO Low Duration Exchange-Traded Fund and PIMCO Real Return Exchange-Traded Fund); 73331 (October 9, 2014), 79 FR 62213 (October 16, 2014) (SR–NYSEArca–2014–104) (Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Use of Derivative Instruments by Certain PIMCO Exchange-Traded Funds) (collectively, ‘‘Prior Bond Low Duration Releases’’). E:\FR\FM\23OCN1.SGM 23OCN1 49048 Federal Register / Vol. 82, No. 203 / Monday, October 23, 2017 / Notices high yield debt securities of any credit quality.13 The Prior Low Duration Notice stated that the average portfolio duration of the Fund normally will vary from one to three years based on PIMCO’s forecast for interest rates. The Adviser proposes to revise this representation to state that the average portfolio duration of the Fund normally will vary from zero to four years based on PIMCO’s forecast for interest rates.14 The Prior Low Duration Notice stated that the Fund may invest up to 10% of its total assets in securities and instruments that are economically tied to emerging market countries, subject to the Fund’s investment limitations relating to particular asset classes.15 The Adviser proposes to revise this representation to state that the Fund may invest in securities and instruments that are economically tied to emerging market countries, subject to the Fund’s investment limitations relating to particular asset classes. Thus, going forward, there would not be a specified limit in investments in the Fund’s investments in emerging markets securities.16 The Adviser represents that the proposed changes to the Fund’s investments referenced above are consistent with the Fund’s investment objective, and will further assist the Adviser to achieve such investment objective. investment grade debt securities. The Adviser proposes to revise this representation to state that the Fund may only invest in U.S. dollardenominated debt securities, which may be of any credit quality.18 The Prior Short Term Municipal Bond Notice [sic] stated that the average portfolio duration of this Fund varies based on PIMCO’s forecast for interest rates and under normal market conditions is not expected to exceed three years. The Adviser proposes to revise this representation to state that the average portfolio duration of this Fund varies based on PIMCO’s forecast for interest rates and under normal market conditions is not expected to exceed four years.19 The Prior Short Term Municipal Bond Notice [sic] stated that the dollarweighted average portfolio maturity of the Fund is normally not expected to exceed three years. The Adviser proposes to revise this representation to state that the Fund will not have any portfolio maturity limitation and may invest its assets in instruments with short-term, medium-term, or long-term maturities.20 The Adviser represents that the proposed changes to the Fund’s investments referenced above are consistent with the Fund’s investment objective, and will further assist the Adviser to achieve such investment objective. Fund may only invest in U.S. dollardenominated investment grade debt securities. The Adviser proposes to revise this representation to state the Fund may only invest in U.S. dollardenominated debt securities, which may be of any credit quality.22 The Second Prior Intermediate Municipal Bond Notice stated that the average portfolio duration of the Fund normally would vary within (negative) 2 years to positive 4 years of the portfolio duration of the securities comprising the Barclays 1–15 Year Municipal Bond Index, as calculated by PIMCO (the ‘‘Index’’). The Adviser proposes to revise this representation to state the average portfolio duration of the Fund normally would vary within (negative) 3 years to positive 5 years of the portfolio duration of the securities comprising the Index.23 As of August 31, 2017, the average portfolio duration of the Index was 4.91 years. Thus, as of August 31, 2017, the average portfolio duration of the Fund normally would vary within approximately 1.9 years and 9.9 years if the proposed revised representation were operative on that date. The Adviser represents that the proposed changes to the Fund’s investments referenced above are consistent with the Fund’s investment objective, and will further assist the Adviser to achieve such investment objective. PIMCO Short Term Municipal Bond Active Exchange-Traded Fund 17 The Prior Short Term Municipal Bond Notice [sic] stated that the Fund may only invest in U.S. dollar-denominated PIMCO Intermediate Municipal Bond Active Exchange-Traded Fund 21 The First Prior Intermediate Municipal Bond Notice stated that the PIMCO Enhanced Short Maturity Active Exchange-Traded Fund 24 18 See ethrower on DSK3G9T082PROD with NOTICES 13 See note 8, supra. 14 See note 9, supra. 15 The Prior Low Duration Notice stated that ‘‘[w]hile emerging markets corporate debt securities (excluding commercial paper) generally must have $200 million or more par amount outstanding and significant par value traded to be considered as an eligible investment for the Fund, at least 80% of issues of such securities held by the Fund must have $200 million or more par amount outstanding at the time of investment. This condition will continue to apply. 16 See note 11, supra. 17 Securities Exchange Act Release No. 60619, (September 3, 2009), 74 FR 46820 (September 11, 2009) (SR–NYSEArca–2009–79) (notice of filing of proposal relating to PIMCO Intermediate Municipal Bond Strategy Exchange-Traded Fund and PIMCO Short-Term Municipal Bond Strategy ExchangeTraded Fund) (‘‘Prior Short Term Notice’’); 60981 (November 10, 2009) 74 FR 59594 (November 18, 2009) (SR–NYSEArca–2009–79) (order approving proposed rule change relating to listing of five fixed income funds of the PIMCO ETF Trust) (‘‘Prior Short Term Order’’); 73331 (October 9, 2014), 79 FR 62213 (October 16, 2014) (SR–NYSEArca–2014– 104) (Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Use of Derivative Instruments by Certain PIMCO Exchange-Traded Funds) (collectively, ‘‘Prior Short Term Releases’’). VerDate Sep<11>2014 20:08 Oct 20, 2017 Jkt 244001 note 8, supra. note 9, supra. 20 The Exchange notes that the Commission previously has approved listing and trading of issues of Managed Fund Shares for which there was no limitation on portfolio maturity for debt instruments. See, e.g., Securities Exchange Act Release Nos. 76126 (October 9, 2015) (SR–Nasdaq– 2015–095) (Order Granting Approval of Proposed Rule Change Relating to the Listing and Trading of the Shares of the AltShares Long/Short High Yield Fund of ETFis Series Trust I); 68972 (February 22, 2013) (SR–Nasdaq–2012–147) (Order Granting Approval of Proposed Rule Change Relating to the Listing and Trading of the Shares of the First Trust High Yield Long/Short ETF of First Trust ExchangeTraded Fund IV). 21 Securities Exchange Act Release No. 60619, (September 3, 2009), 74 FR 46820 (September 11, 2009) (SR–NYSEArca–2009–79) (notice of filing of proposal relating to PIMCO Intermediate Municipal Bond Strategy Exchange-Traded Fund and PIMCO Short-Term Municipal Bond Strategy ExchangeTraded Fund) (‘‘First Prior Intermediate Municipal Bond Notice’’); 60981 (November 10, 2009) 74 FR 59594 (November 18, 2009) (SR–NYSEArca–2009– 79) (order approving proposed rule change relating to listing of five fixed income funds of the PIMCO ETF Trust); 75978 (September 24, 2015) (SR– NYSEArca–2015–79) (Notice of Filing and Immediate Effectiveness of Proposed Rule Change Regarding the PIMCO Intermediate Municipal Bond 19 See PO 00000 Frm 00078 Fmt 4703 Sfmt 4703 The Prior Short Maturity Notice stated that the Fund primarily invests in U.S. dollar-denominated investment grade debt securities, rated Baa or higher by Moody’s, or equivalently rated by S&P or Fitch, or, if unrated, determined by PIMCO to be of comparable credit quality. The Adviser proposes to revise this representation to state the Fund primarily will invest in U.S. dollarActive Exchange-Traded Fund) (‘‘Second Prior Intermediate Municipal Bond Notice’’); 73331 (October 9, 2014) (SR–NYSEArca–2014–104) (Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Use of Derivative Instruments by Certain PIMCO Exchange-Traded Funds) (collectively, ‘‘Prior Intermediate Municipal Bond Releases’’). 22 See note 8, supra. 23 See note 9, supra. 24 Securities Exchange Act Release No. 60619 (September 3, 2009), 74 FR 46820 (September 11, 2009) (SR–NYSEArca–2009–79) (notice of filing of proposed rule change relating to listing of five fixed income funds of the PIMCO ETF Trust, including the PIMCO Enhanced Short Maturity Strategy Fund) (‘‘Prior Short Maturity Notice’’); 60981 (November 10, 2009), 74 FR 59594 (November 18, 2009) (SR– NYSEArca–2009–79) (order approving proposed rule change relating to listing of five fixed income funds of the PIMCO ETF Trust) (collectively, ‘‘Prior Short Maturity Releases’’). E:\FR\FM\23OCN1.SGM 23OCN1 Federal Register / Vol. 82, No. 203 / Monday, October 23, 2017 / Notices denominated debt securities, which may be of any credit quality.25 The Prior Short Maturity Notice stated that the average portfolio duration of this Fund will vary based on PIMCO’s forecast for interest rates and will normally not exceed one year. The Adviser proposes to revise this representation to state the average portfolio duration of this Fund will vary based on PIMCO’s forecast for interest rates and will normally not exceed one and one half years.26 The Prior Short Maturity Notice stated that the dollar-weighted average portfolio maturity of the Fund is normally not expected to exceed three years. The Adviser proposes to revise this representation to state the Fund will not have any portfolio maturity limitation and may invest its assets in instruments with short-term, mediumterm, or long-term maturities.27 The Prior Short Maturity Notice stated that the Fund may invest up to 5% of its total assets in U.S. dollardenominated fixed-income securities and instruments that are economically tied to emerging market countries. The Adviser proposes to revise this representation to state the Fund may invest up to 10% of its total assets in U.S. dollar-denominated fixed-income securities and instruments that are economically tied to emerging market countries.28 The Adviser represents that the proposed changes to the Fund’s investments referenced above are consistent with the Fund’s investment objective, and will further assist the Adviser to achieve such investment objective. Except for the changes noted above, all other representations made in the Prior Bond Releases, the Prior Bond Low Duration Releases, the Prior Short Term Releases, the Prior Intermediate Municipal Bond Releases, and the Prior Short Maturity Releases, respectively, remain unchanged. All terms referenced but not defined herein are defined in the Prior Bond Releases, the Prior Low Duration Releases [sic], the Prior Short Term Releases, the Prior Intermediate Municipal Bond Releases, and the Prior Short Maturity Releases, respectively. ethrower on DSK3G9T082PROD with NOTICES 2. Statutory Basis The basis under the Act for this proposed rule change is the requirement under Section 6(b)(5) 29 that an 25 See note 8, supra. note 9, supra. 27 See note 20, supra. 28 See note 11, supra. 29 15 U.S.C. 78f(b)(5). 26 See VerDate Sep<11>2014 20:08 Oct 20, 2017 exchange have rules that are designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to remove impediments to, and perfect the mechanism of a free and open market and, in general, to protect investors and the public interest. The Exchange believes that the proposed rule change is designed to prevent fraudulent and manipulative acts and practices, and is designed to promote just and equitable principles of trade and to protect investors and the public interest. With respect to changes in the representations regarding investments in investment grade and high yield debt securities for each of the Funds’ portfolios, such changes will provide each Fund with additional flexibility in selecting fixed income securities investments in view of changing market conditions and consistent with a Fund’s investment objectives. The Exchange believes that the changes to representations regarding investments in investment grade or high yield fixed income securities in the applicable Funds’ portfolios are consistent with prior Commission approvals of proposed rule changes for other issues of Managed Fund Shares and will not adversely impact investors or Exchange trading.30 With respect to the proposed changes to the representations regarding the average portfolio duration regarding the portfolios of each of the Funds, and the change to the representation regarding the dollar-weighted average portfolio maturity regarding the portfolio of the PIMCO Enhanced Short Maturity Active Exchange-Traded Fund and the PIMCO Short Term Municipal Bond Active Exchange-Traded Fund, the Exchange believes such changes will not adversely impact investors or Exchange trading and will provide such Funds with additional flexibility in managing the Funds’ investments based on the Adviser’s assessment of market conditions impacting the Funds’ investments. Further, a more flexible bandwidth for the average portfolio duration and dollar-weighted average portfolio maturity will allow the Funds to respond more effectively to changing market conditions. The Exchange believes that the change to the average portfolio duration and dollar-weighted average portfolio maturity of the applicable Funds’ portfolios are consistent with prior Commission approvals of proposed rule changes for other issues of Managed Fund Shares 30 See Jkt 244001 PO 00000 and will not adversely impact investors or Exchange trading.31 With respect to proposed changes in the representations regarding investments in securities and instruments that are economically tied to emerging market countries for the PIMCO Active Bond Exchange-Traded Fund, PIMCO Enhanced Short Maturity Active Exchange-Traded Fund and PIMCO Enhanced Low Duration Active Exchange-Traded Fund, such changes will provide each Fund with additional flexibility in selecting fixed income securities investments of emerging market issuers, which may be appropriate in view of changing market conditions and consistent with a Fund’s investment objectives. The Exchange believes that the changes to such representations are consistent with prior Commission approvals of proposed rule changes for other issues of Managed Fund Shares and will not adversely impact investors or Exchange trading.32 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 purposes of the Act. The Exchange believes the proposed rule change will enhance competition among issues of exchange-traded funds that invest in fixed income securities to the benefit of investors and the marketplace. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were solicited or received with respect to the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action 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, it has become effective pursuant to Section 19(b)(3)(A) of the Act 33 and Rule 19b– 4(f)(6) thereunder.34 31 See notes 9 and 20, supra. note 11, supra. 33 15 U.S.C. 78s(b)(3)(A). 34 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 4(f)(6)(iii) requires a self-regulatory organization to give the Commission written notice of its intent to file the proposed rule change, along with a brief 32 See note 8, supra. Frm 00079 Fmt 4703 49049 Continued Sfmt 4703 E:\FR\FM\23OCN1.SGM 23OCN1 49050 Federal Register / Vol. 82, No. 203 / Monday, October 23, 2017 / Notices 10:00 a.m. and 3:00 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR– NYSEArca–2017–120 and should be submitted on or before November 13, 2017. 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: For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.35 Eduardo A. Aleman, Assistant Secretary. 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–2017–120 on the subject line. ethrower on DSK3G9T082PROD with NOTICES 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 change should be approved or disapproved. SECURITIES AND EXCHANGE COMMISSION 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–2017–120. 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 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. The Exchange has satisfied this requirement. VerDate Sep<11>2014 20:08 Oct 20, 2017 Jkt 244001 [FR Doc. 2017–22885 Filed 10–20–17; 8:45 am] BILLING CODE 8011–01–P 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 [Release No. 34–81888; File No. SR– NYSEArca–2017–118] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 6.76A–O To Adopt Additional Self-Trade Prevention Modifiers October 17, 2017. 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 3, 2017, 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. I. Self-Regulatory Organization’s Statement of the Terms of the Substance of the Proposed Rule Change The Exchange proposes to amend Rule 6.76A–O (Order Execution—OX). 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. 35 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 15 U.S.C. 78a. 3 17 CFR 240.19b–4. 1 15 PO 00000 Frm 00080 Fmt 4703 Sfmt 4703 The purpose of the filing is to amend Commentary .01 to NYSE Arca Rule 6.76A–O (Order Execution—OX) regarding the Exchange’s Self-Trade Prevention (‘‘STP’’) functionality.4 The Exchange currently offers a basic form of self-trade prevention 5 pursuant to which the Exchange cancels any resting Market Maker quote(s) and order(s) 6 to buy (sell) that are priced equal to or higher (lower) than an incoming Market Maker quote, order or both to sell (buy) entered under the same trading permit identification (‘‘TPID’’).7 The Exchange proposes to expand the self-trade functionality by adopting three STP modifiers. The proposed STP modifiers are designed to prevent incoming Market Maker order(s) or quote(s) designated with an STP 4 Self-Trade Prevention is only applicable to electronic trading on the Exchange. 5 See Securities Exchange Act Release No. 66386 (February 13, 2012), 77 FR 9721 (February 17, 2012) (SR–NYSEArca–2012–08). 6 Self-Trade Prevention currently is applicable to the following order types used by Market Makers: ‘‘PNP Orders,’’ ‘‘PNP–Blind Orders,’’ and ‘‘PNP– Light Orders.’’ PNP Orders, PNP–Blind Orders, and PNP–Light Orders are defined in NYSE Arca Rule 6.62–O, and each is a type of non-routable Limit Order that is only executed on the Exchange. The Exchange notes that Market Makers primarily use these order types, as opposed to other order types offered by the Exchange, because they are similar to quotes (i.e., they are non-routable Limit Orders). See Regulatory Information Bulletin RBO–12–04 at https://www.nyse.com/publicdocs/nyse/markets/ arca-options/rule-interpretations/2012/ NYSEArca%20RBO-12-04.pdf. 7 The Exchange uses a Market Maker’s TPID to monitor for self-trades. TPIDs are assigned to Market Makers, as well as other OTP Firms and OTP Holders, to identify them in the Exchange’s systems. Market Makers on the Exchange are not able to submit orders on an agency basis. Thus, a Market Maker within a firm that conducts both an agency and market making business has a unique TPID that could only be used for that Market Maker’s quotes and orders. E:\FR\FM\23OCN1.SGM 23OCN1

Agencies

[Federal Register Volume 82, Number 203 (Monday, October 23, 2017)]
[Notices]
[Pages 49046-49050]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-22885]


=======================================================================
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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81890; File No. SR-NYSEArca-2017-120]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Relating to Changes 
to Certain Representations Relating to Five PIMCO Exchange-Traded Funds 
Currently Listed Under NYSE Arca Rule 8.600-E

October 17, 2017.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given 
that, on October 5, 2017, NYSE Arca, Inc. (the ``Exchange'' or ``NYSE 
Arca'') 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 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 reflect changes to certain representations 
made in the respective proposed rule changes previously filed with the 
Commission pursuant to Rule 19b-4 relating to the PIMCO Active Bond 
Exchange-Traded Fund, PIMCO Enhanced Low Duration Active Exchange-
Traded Fund, PIMCO Short Term Municipal Bond Active Exchange-Traded 
Fund, PIMCO Intermediate Municipal Bond Active Exchange-Traded Fund, 
and PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (each a 
``Fund'' and, collectively, the ``Funds''). Shares of the Funds are 
currently listed and traded on the Exchange under NYSE Arca Rule 8.600-
E. 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 the listing and trading on the Exchange 
of shares (``Shares'') of the Funds, under NYSE Arca Rule 8.600-E 
(formerly NYSE Arca Equities Rule 8.600), which governs the listing and 
trading of Managed Fund Shares.\4\ The Shares are offered by PIMCO ETF 
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.\5\ The investment manager to

[[Page 49047]]

the Funds is Pacific Investment Management Company LLC (``PIMCO'' or 
the ``Adviser''). The Funds' Shares are currently listed and traded on 
the Exchange under NYSE Arca Rule 8.600-E.
---------------------------------------------------------------------------

    \4\ 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 Rule 5.2-E(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.
    \5\ The Trust is registered under the 1940 Act. On October 28, 
2016 the Trust filed with the Commission the most recent post-
effective amendment to its registration statement under the 
Securities Act of 1933 (15 U.S.C. 77a) (``1933 Act'') and under the 
1940 Act relating to the Funds (File Nos. 333-155395 and 811-22250) 
(the ``Registration Statement''). The description of the operation 
of the Trust and the Funds 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. 28993 (November 10, 
2009) (File No. 812-13571) (``Exemptive Order'').
---------------------------------------------------------------------------

    In this proposed rule change, the Exchange proposes to reflect 
changes to certain representations made in the respective proposed rule 
changes previously filed with the Commission pursuant to Rule 19b-4(e) 
relating to the Funds, as described below.\6\
---------------------------------------------------------------------------

    \6\ The Adviser represents that it will manage the Funds in the 
manner described in the applicable proposed rule changes for the 
Funds referenced below, and will not implement the changes described 
herein until the proposed rule change is operative.
---------------------------------------------------------------------------

PIMCO Active Bond Exchange-Traded Fund \7\
---------------------------------------------------------------------------

    \7\ See Securities Exchange Act Release Nos. 65988 (December 16, 
2011), 76 FR 79741 (December 22, 2011) (SR-NYSEArca-2011-95) (notice 
of filing of proposed rule change relating to Exchange listing and 
trading of shares of the PIMCO Total Return Exchange Traded Fund 
(now the PIMCO Active Bond Exchange Traded Fund)) (``First Prior 
Bond Notice''); 66321 (February 3, 2012), 77 FR 6850 (February 9, 
2012) (SR-NYSEArca-2011-95) (order approving listing and trading of 
Shares of the Fund on the Exchange). See also Securities Exchange 
Act Release Nos. 70905 (November 20, 2013), 78 FR 70610 (November 
26, 2013) (SR-NYSEArca-2013-122) (notice of filing of proposed rule 
change relating to use of derivative instruments by the Fund); 72666 
(July 24, 2014), 79 FR 44224 (July 30, 2014) (SR-NYSEArca-2013-122) 
(order approving proposed rule change relating to use of derivative 
instruments by the Fund; 73331 (October 9, 2014), 79 FR 62213 
(October 16, 2014) (SR-NYSEArca-2014-104) (notice of filing and 
immediate effectiveness of proposed rule change relating to use of 
derivatives by certain PIMCO exchange traded funds); 75475 (July 16, 
2015), 80 FR 43507 (July 22, 2015) (SR-NYSEArca-2015-63) (notice of 
filing and immediate effectiveness of proposed rule change relating 
to a change in the size of a Creation Unit applicable to Shares of 
the Fund); 80534 (April 26, 2017), 82 FR 20525 (May 2, 2017) (SR-
NYSEArca-2017-41) (notice of filing and immediate effectiveness of 
proposed rule change to reflect changes in the name of, the 
investment objective for, and the means of achieving the investment 
objective applicable to the PIMCO Total Return Active Exchange-
Traded Fund) (``2017 Bond Release'' and, together with the other 
releases referenced in this footnote, the ``Prior Bond Releases'').
---------------------------------------------------------------------------

    The 2017 Bond Release stated that the Fund will primarily (under 
normal market circumstances, at least 65% of its total assets) invest 
in a diversified portfolio of Fixed Income Instruments of varying 
maturities, which may be represented by derivatives related to Fixed 
Income Instruments, but may invest up to 30% of its total assets in 
high yield Fixed Income Instruments (which may be represented by 
derivatives related to Fixed Income Instruments) rated B3 through Ba1 
by Moody's, or equivalently rated by S&P or Fitch, or, if unrated, 
determined by PIMCO to be of comparable credit quality. The Adviser 
proposes to revise this representation to state that the Fund will 
primarily (under normal market circumstances, at least 65% of its total 
assets) invest in a diversified portfolio of Fixed Income Instruments 
of varying maturities, which may be represented by derivatives related 
to Fixed Income Instruments, and may invest in high yield Fixed Income 
Instruments (which may be represented by derivatives related to Fixed 
Income Instruments) of any credit quality.\8\
---------------------------------------------------------------------------

    \8\ The Exchange notes that the Commission previously has 
approved the listing and trading of issues of Managed Fund Shares 
where there is not a specified limit to a fund's holdings that may 
be in high yield bonds or a specified credit quality. See, e.g., 
Securities Exchange Act Release Nos. 75540 (July 28, 2015), 80 FR 
46359 (August 4, 2015) (SR-NYSEArca-2015-50) (order approving 
listing and trading on the Exchange of shares of the Cambria 
Sovereign High Yield Bond ETF and Cambria Value and Momentum ETF 
under NYSE Arca Equities Rule 8.600); 77904 (May 25, 2016), 81 FR 
35101 (June 1, 2016) (SR-NYSEArca-2016-17) (order approving proposed 
rule change to list and trade shares of the JPMorgan Diversified 
Alternative ETF under NYSE Arca Equities Rule 8.600).
---------------------------------------------------------------------------

    The 2017 Bond Release stated that the average portfolio duration of 
PIMCO Active Bond Exchange-Traded Fund normally will vary from zero to 
eight years based on PIMCO's market forecasts. The Adviser proposes to 
revise this representation to state that the average portfolio duration 
of this Fund normally will vary from zero to nine years based on 
PIMCO's market forecasts.\9\
---------------------------------------------------------------------------

    \9\ The Exchange notes that the Commission has approved the 
listing and trading of other issues of Managed Fund Shares that have 
a duration range comparable to those proposed for the Fund. See, 
e.g., Securities Exchange Act Release Nos. 79293 (November 10, 
2016), 81 FR 81189 (November 17, 2016) (SR-NYSEArca-2016-107) (order 
approving listing and trading of shares of Cumberland Municipal Bond 
ETF under NYSE Arca Equities Rule 8.600, which states that ``At 
least 80% of the weight of the Fund's assets will be in Municipal 
Bonds with a modified duration of 15 years or less''); 71617 
(February 26, 2014), 79 FR 12257 (March 4, 2014) (SR-NYSEArca-2013-
135) (Order Granting Approval of Proposed Rule Change to List and 
Trade Shares of db-X Ultra-Short Duration Fund and db-X Managed 
Municipal Bond Fund under NYSE Arca Equities Rule 8.600, which 
states that ``[a]lthough the [db-X Managed Municipal Bond Fund] may 
adjust duration of its holdings over a wider range, it generally 
intends to keep it between five and nine years''); 77522 (April 5, 
2016), 81 FR 21420 (April 11, 2016) (SR-NYSEArca-2015-125) (order 
approving proposed rule change to list and trade shares of the 
Riverfront Dynamic Unconstrained Income ETF and Riverfront Dynamic 
Core Income ETF under NYSE Arca Equities Rule 8.600, which states 
that ``the Sub-Adviser intends to manage the [Riverfront Dynamic 
Unconstrained Income ETF's] portfolio so that it has an average 
duration of between two and ten years, under normal 
circumstances'').
---------------------------------------------------------------------------

    The First Prior Bond Notice stated that the Fund may invest up to 
15% of its total assets in securities and instruments that are 
economically tied to emerging market countries.\10\ The Adviser 
proposes to revise this representation to state that the Fund may 
invest in securities and instruments that are economically tied to 
emerging market countries. Thus, going forward, there would not be a 
specified limit in the Fund's investments in emerging markets 
securities.\11\
---------------------------------------------------------------------------

    \10\ The First Prior Bond Notice stated that ``[w]hile corporate 
debt securities and debt securities economically tied to an emerging 
market country generally must have $200 million or more par amount 
outstanding and significant par value traded to be considered as an 
eligible investment for the Fund, at least 80% of issues of such 
securities held by the Fund must have $200 million or more par 
amount outstanding.'' This condition will continue to apply.
    \11\ The Exchange notes that the Commission has approved the 
listing and trading of other issues of Managed Fund Shares for which 
there was not a specified limit in investments in foreign fixed 
income securities, which would include emerging markets securities. 
See, e.g., Securities Exchange Act Release Nos. 79683 (December 23, 
2016) 81 FR 96539 (December 30, 2016) (SR-NYSEArca-2016-82) (order 
approving proposed rule change to list and trade shares of the 
JPMorgan Diversified Event Driven ETF under NYSE Arca Equities Rule 
8.600); 80657 (May 11, 2017) (SR-NYSEArca-2017-09) (order approving 
proposed rule change to list and trade shares of the Janus Short 
Duration Fund under NYSE Arca Equities Rule 8.600).
---------------------------------------------------------------------------

    The Adviser represents that the proposed changes to the Fund's 
investments referenced above are consistent with the Fund's investment 
objective, and will further assist the Adviser to achieve such 
investment objective.
PIMCO Enhanced Low Duration Active Exchange-Traded Fund \12\
---------------------------------------------------------------------------

    \12\ See Securities Exchange Act Release Nos. 70774 (October 30, 
2013), 78 FR 66396 (November 5, 2013) (SR-NYSEArca-2013-106) (notice 
of filing of proposal relating to PIMCO Diversified Income Exchange-
Traded Fund, PIMCO Low Duration Exchange-Traded Fund and PIMCO Real 
Return Exchange-Traded Fund) (``Prior Low Duration Notice''); 71125 
(December 18, 2013), 78 FR 77743 (December 24, 2013) (SR-NYSEArca-
2013-106) (order approving listing and trading of PIMCO Diversified 
Income Exchange-Traded Fund, PIMCO Low Duration Exchange-Traded Fund 
and PIMCO Real Return Exchange-Traded Fund); 73331 (October 9, 
2014), 79 FR 62213 (October 16, 2014) (SR-NYSEArca-2014-104) (Notice 
of Filing and Immediate Effectiveness of Proposed Rule Change 
Relating to Use of Derivative Instruments by Certain PIMCO Exchange-
Traded Funds) (collectively, ``Prior Bond Low Duration Releases'').
---------------------------------------------------------------------------

    The Prior Low Duration Notice stated that the Fund will invest 
primarily in investment grade debt securities, but may invest up to 10% 
of its total assets in high yield debt securities rated B to Ba by 
Moody's, or equivalently rated by S&P or Fitch, or, if unrated, 
determined by PIMCO to be of comparable credit quality. The Adviser 
proposes to revise this representation to state that the Fund will 
invest primarily in investment grade debt securities, and may invest in

[[Page 49048]]

high yield debt securities of any credit quality.\13\
---------------------------------------------------------------------------

    \13\ See note 8, supra.
---------------------------------------------------------------------------

    The Prior Low Duration Notice stated that the average portfolio 
duration of the Fund normally will vary from one to three years based 
on PIMCO's forecast for interest rates. The Adviser proposes to revise 
this representation to state that the average portfolio duration of the 
Fund normally will vary from zero to four years based on PIMCO's 
forecast for interest rates.\14\
---------------------------------------------------------------------------

    \14\ See note 9, supra.
---------------------------------------------------------------------------

    The Prior Low Duration Notice stated that the Fund may invest up to 
10% of its total assets in securities and instruments that are 
economically tied to emerging market countries, subject to the Fund's 
investment limitations relating to particular asset classes.\15\ The 
Adviser proposes to revise this representation to state that the Fund 
may invest in securities and instruments that are economically tied to 
emerging market countries, subject to the Fund's investment limitations 
relating to particular asset classes. Thus, going forward, there would 
not be a specified limit in investments in the Fund's investments in 
emerging markets securities.\16\
---------------------------------------------------------------------------

    \15\ The Prior Low Duration Notice stated that ``[w]hile 
emerging markets corporate debt securities (excluding commercial 
paper) generally must have $200 million or more par amount 
outstanding and significant par value traded to be considered as an 
eligible investment for the Fund, at least 80% of issues of such 
securities held by the Fund must have $200 million or more par 
amount outstanding at the time of investment. This condition will 
continue to apply.
    \16\ See note 11, supra.
---------------------------------------------------------------------------

    The Adviser represents that the proposed changes to the Fund's 
investments referenced above are consistent with the Fund's investment 
objective, and will further assist the Adviser to achieve such 
investment objective.
PIMCO Short Term Municipal Bond Active Exchange-Traded Fund \17\
---------------------------------------------------------------------------

    \17\ Securities Exchange Act Release No. 60619, (September 3, 
2009), 74 FR 46820 (September 11, 2009) (SR-NYSEArca-2009-79) 
(notice of filing of proposal relating to PIMCO Intermediate 
Municipal Bond Strategy Exchange-Traded Fund and PIMCO Short-Term 
Municipal Bond Strategy Exchange-Traded Fund) (``Prior Short Term 
Notice''); 60981 (November 10, 2009) 74 FR 59594 (November 18, 2009) 
(SR-NYSEArca-2009-79) (order approving proposed rule change relating 
to listing of five fixed income funds of the PIMCO ETF Trust) 
(``Prior Short Term Order''); 73331 (October 9, 2014), 79 FR 62213 
(October 16, 2014) (SR-NYSEArca-2014-104) (Notice of Filing and 
Immediate Effectiveness of Proposed Rule Change Relating to Use of 
Derivative Instruments by Certain PIMCO Exchange-Traded Funds) 
(collectively, ``Prior Short Term Releases'').
---------------------------------------------------------------------------

    The Prior Short Term Municipal Bond Notice [sic] stated that the 
Fund may only invest in U.S. dollar-denominated investment grade debt 
securities. The Adviser proposes to revise this representation to state 
that the Fund may only invest in U.S. dollar-denominated debt 
securities, which may be of any credit quality.\18\
---------------------------------------------------------------------------

    \18\ See note 8, supra.
---------------------------------------------------------------------------

    The Prior Short Term Municipal Bond Notice [sic] stated that the 
average portfolio duration of this Fund varies based on PIMCO's 
forecast for interest rates and under normal market conditions is not 
expected to exceed three years. The Adviser proposes to revise this 
representation to state that the average portfolio duration of this 
Fund varies based on PIMCO's forecast for interest rates and under 
normal market conditions is not expected to exceed four years.\19\
---------------------------------------------------------------------------

    \19\ See note 9, supra.
---------------------------------------------------------------------------

    The Prior Short Term Municipal Bond Notice [sic] stated that the 
dollar-weighted average portfolio maturity of the Fund is normally not 
expected to exceed three years. The Adviser proposes to revise this 
representation to state that the Fund will not have any portfolio 
maturity limitation and may invest its assets in instruments with 
short-term, medium-term, or long-term maturities.\20\
---------------------------------------------------------------------------

    \20\ The Exchange notes that the Commission previously has 
approved listing and trading of issues of Managed Fund Shares for 
which there was no limitation on portfolio maturity for debt 
instruments. See, e.g., Securities Exchange Act Release Nos. 76126 
(October 9, 2015) (SR-Nasdaq-2015-095) (Order Granting Approval of 
Proposed Rule Change Relating to the Listing and Trading of the 
Shares of the AltShares Long/Short High Yield Fund of ETFis Series 
Trust I); 68972 (February 22, 2013) (SR-Nasdaq-2012-147) (Order 
Granting Approval of Proposed Rule Change Relating to the Listing 
and Trading of the Shares of the First Trust High Yield Long/Short 
ETF of First Trust Exchange-Traded Fund IV).
---------------------------------------------------------------------------

    The Adviser represents that the proposed changes to the Fund's 
investments referenced above are consistent with the Fund's investment 
objective, and will further assist the Adviser to achieve such 
investment objective.
PIMCO Intermediate Municipal Bond Active Exchange-Traded Fund \21\
---------------------------------------------------------------------------

    \21\ Securities Exchange Act Release No. 60619, (September 3, 
2009), 74 FR 46820 (September 11, 2009) (SR-NYSEArca-2009-79) 
(notice of filing of proposal relating to PIMCO Intermediate 
Municipal Bond Strategy Exchange-Traded Fund and PIMCO Short-Term 
Municipal Bond Strategy Exchange-Traded Fund) (``First Prior 
Intermediate Municipal Bond Notice''); 60981 (November 10, 2009) 74 
FR 59594 (November 18, 2009) (SR-NYSEArca-2009-79) (order approving 
proposed rule change relating to listing of five fixed income funds 
of the PIMCO ETF Trust); 75978 (September 24, 2015) (SR-NYSEArca-
2015-79) (Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change Regarding the PIMCO Intermediate Municipal Bond Active 
Exchange-Traded Fund) (``Second Prior Intermediate Municipal Bond 
Notice''); 73331 (October 9, 2014) (SR-NYSEArca-2014-104) (Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change Relating 
to Use of Derivative Instruments by Certain PIMCO Exchange-Traded 
Funds) (collectively, ``Prior Intermediate Municipal Bond 
Releases'').
---------------------------------------------------------------------------

    The First Prior Intermediate Municipal Bond Notice stated that the 
Fund may only invest in U.S. dollar-denominated investment grade debt 
securities. The Adviser proposes to revise this representation to state 
the Fund may only invest in U.S. dollar-denominated debt securities, 
which may be of any credit quality.\22\
---------------------------------------------------------------------------

    \22\ See note 8, supra.
---------------------------------------------------------------------------

    The Second Prior Intermediate Municipal Bond Notice stated that the 
average portfolio duration of the Fund normally would vary within 
(negative) 2 years to positive 4 years of the portfolio duration of the 
securities comprising the Barclays 1-15 Year Municipal Bond Index, as 
calculated by PIMCO (the ``Index''). The Adviser proposes to revise 
this representation to state the average portfolio duration of the Fund 
normally would vary within (negative) 3 years to positive 5 years of 
the portfolio duration of the securities comprising the Index.\23\ As 
of August 31, 2017, the average portfolio duration of the Index was 
4.91 years. Thus, as of August 31, 2017, the average portfolio duration 
of the Fund normally would vary within approximately 1.9 years and 9.9 
years if the proposed revised representation were operative on that 
date.
---------------------------------------------------------------------------

    \23\ See note 9, supra.
---------------------------------------------------------------------------

    The Adviser represents that the proposed changes to the Fund's 
investments referenced above are consistent with the Fund's investment 
objective, and will further assist the Adviser to achieve such 
investment objective.
PIMCO Enhanced Short Maturity Active Exchange-Traded Fund \24\
---------------------------------------------------------------------------

    \24\ Securities Exchange Act Release No. 60619 (September 3, 
2009), 74 FR 46820 (September 11, 2009) (SR-NYSEArca-2009-79) 
(notice of filing of proposed rule change relating to listing of 
five fixed income funds of the PIMCO ETF Trust, including the PIMCO 
Enhanced Short Maturity Strategy Fund) (``Prior Short Maturity 
Notice''); 60981 (November 10, 2009), 74 FR 59594 (November 18, 
2009) (SR-NYSEArca-2009-79) (order approving proposed rule change 
relating to listing of five fixed income funds of the PIMCO ETF 
Trust) (collectively, ``Prior Short Maturity Releases'').
---------------------------------------------------------------------------

    The Prior Short Maturity Notice stated that the Fund primarily 
invests in U.S. dollar-denominated investment grade debt securities, 
rated Baa or higher by Moody's, or equivalently rated by S&P or Fitch, 
or, if unrated, determined by PIMCO to be of comparable credit quality. 
The Adviser proposes to revise this representation to state the Fund 
primarily will invest in U.S. dollar-

[[Page 49049]]

denominated debt securities, which may be of any credit quality.\25\
---------------------------------------------------------------------------

    \25\ See note 8, supra.
---------------------------------------------------------------------------

    The Prior Short Maturity Notice stated that the average portfolio 
duration of this Fund will vary based on PIMCO's forecast for interest 
rates and will normally not exceed one year. The Adviser proposes to 
revise this representation to state the average portfolio duration of 
this Fund will vary based on PIMCO's forecast for interest rates and 
will normally not exceed one and one half years.\26\
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    \26\ See note 9, supra.
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    The Prior Short Maturity Notice stated that the dollar-weighted 
average portfolio maturity of the Fund is normally not expected to 
exceed three years. The Adviser proposes to revise this representation 
to state the Fund will not have any portfolio maturity limitation and 
may invest its assets in instruments with short-term, medium-term, or 
long-term maturities.\27\
---------------------------------------------------------------------------

    \27\ See note 20, supra.
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    The Prior Short Maturity Notice stated that the Fund may invest up 
to 5% of its total assets in U.S. dollar-denominated fixed-income 
securities and instruments that are economically tied to emerging 
market countries. The Adviser proposes to revise this representation to 
state the Fund may invest up to 10% of its total assets in U.S. dollar-
denominated fixed-income securities and instruments that are 
economically tied to emerging market countries.\28\
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    \28\ See note 11, supra.
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    The Adviser represents that the proposed changes to the Fund's 
investments referenced above are consistent with the Fund's investment 
objective, and will further assist the Adviser to achieve such 
investment objective.
    Except for the changes noted above, all other representations made 
in the Prior Bond Releases, the Prior Bond Low Duration Releases, the 
Prior Short Term Releases, the Prior Intermediate Municipal Bond 
Releases, and the Prior Short Maturity Releases, respectively, remain 
unchanged.
    All terms referenced but not defined herein are defined in the 
Prior Bond Releases, the Prior Low Duration Releases [sic], the Prior 
Short Term Releases, the Prior Intermediate Municipal Bond Releases, 
and the Prior Short Maturity Releases, respectively.
2. Statutory Basis
    The basis under the Act for this proposed rule change is the 
requirement under Section 6(b)(5) \29\ 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.
---------------------------------------------------------------------------

    \29\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange believes that the proposed rule change is designed to 
prevent fraudulent and manipulative acts and practices, and is designed 
to promote just and equitable principles of trade and to protect 
investors and the public interest.
    With respect to changes in the representations regarding 
investments in investment grade and high yield debt securities for each 
of the Funds' portfolios, such changes will provide each Fund with 
additional flexibility in selecting fixed income securities investments 
in view of changing market conditions and consistent with a Fund's 
investment objectives. The Exchange believes that the changes to 
representations regarding investments in investment grade or high yield 
fixed income securities in the applicable Funds' portfolios are 
consistent with prior Commission approvals of proposed rule changes for 
other issues of Managed Fund Shares and will not adversely impact 
investors or Exchange trading.\30\
---------------------------------------------------------------------------

    \30\ See note 8, supra.
---------------------------------------------------------------------------

    With respect to the proposed changes to the representations 
regarding the average portfolio duration regarding the portfolios of 
each of the Funds, and the change to the representation regarding the 
dollar-weighted average portfolio maturity regarding the portfolio of 
the PIMCO Enhanced Short Maturity Active Exchange-Traded Fund and the 
PIMCO Short Term Municipal Bond Active Exchange-Traded Fund, the 
Exchange believes such changes will not adversely impact investors or 
Exchange trading and will provide such Funds with additional 
flexibility in managing the Funds' investments based on the Adviser's 
assessment of market conditions impacting the Funds' investments. 
Further, a more flexible bandwidth for the average portfolio duration 
and dollar-weighted average portfolio maturity will allow the Funds to 
respond more effectively to changing market conditions. The Exchange 
believes that the change to the average portfolio duration and dollar-
weighted average portfolio maturity of the applicable Funds' portfolios 
are consistent with prior Commission approvals of proposed rule changes 
for other issues of Managed Fund Shares and will not adversely impact 
investors or Exchange trading.\31\
---------------------------------------------------------------------------

    \31\ See notes 9 and 20, supra.
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    With respect to proposed changes in the representations regarding 
investments in securities and instruments that are economically tied to 
emerging market countries for the PIMCO Active Bond Exchange-Traded 
Fund, PIMCO Enhanced Short Maturity Active Exchange-Traded Fund and 
PIMCO Enhanced Low Duration Active Exchange-Traded Fund, such changes 
will provide each Fund with additional flexibility in selecting fixed 
income securities investments of emerging market issuers, which may be 
appropriate in view of changing market conditions and consistent with a 
Fund's investment objectives. The Exchange believes that the changes to 
such representations are consistent with prior Commission approvals of 
proposed rule changes for other issues of Managed Fund Shares and will 
not adversely impact investors or Exchange trading.\32\
---------------------------------------------------------------------------

    \32\ See note 11, supra.
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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 purposes of the Act. The Exchange believes the 
proposed rule change will enhance competition among issues of exchange-
traded funds that invest in fixed income securities to the benefit of 
investors and the marketplace.

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

    No written comments were solicited or received with respect to the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    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, it has become effective pursuant to Section 
19(b)(3)(A) of the Act \33\ and Rule 19b-4(f)(6) thereunder.\34\
---------------------------------------------------------------------------

    \33\ 15 U.S.C. 78s(b)(3)(A).
    \34\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
requires a self-regulatory organization to give the Commission 
written notice of its intent to file the proposed rule change, along 
with a brief description and 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. The Exchange has satisfied this requirement.

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[[Page 49050]]

    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 change 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 [email protected]. Please include 
File Number SR-NYSEArca-2017-120 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-2017-120. This 
file number should be included on the subject line if email is used. To 
help the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for Web site viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE., 
Washington, DC 20549 on official business days between the hours of 
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available 
for inspection and copying at the principal office of the Exchange. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-NYSEArca-2017-120 and should 
be submitted on or before November 13, 2017.
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    \35\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\35\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-22885 Filed 10-20-17; 8:45 am]
BILLING CODE 8011-01-P
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