Self-Regulatory Organizations; NYSE Arca, Inc.; Order Approving a Proposed Rule Change To Amend NYSE Arca Rule 8.700-E and To List and Trade Shares of the Dynamic Short Short-Term Volatility Futures ETF, 54707-54710 [2019-22137]
Download as PDF
Federal Register / Vol. 84, No. 197 / Thursday, October 10, 2019 / Notices
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing 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 8 and Rule 19b–
4(f)(6) thereunder.9
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act 10 normally does not become
operative for 30 days after the date of its
filing. However, Rule 19b–4(f)(6)(iii) 11
permits the Commission to designate a
shorter time if such action is consistent
with the protection of investors and the
public interest. The Exchange has asked
the Commission to waive the 30-day
operative delay so that the Exchange
may implement the proposed rule
change at the time of its anticipated
October 7, 2019 system migration. The
Exchange believes that waiver of the
operative delay is appropriate because,
as the Exchange discussed above, its
proposal does not make any substantive
changes to the Exchange’s rules. The
Commission believes that waiver of the
30-day operative delay is consistent
with the protection of investors and the
public interest because the proposal
does not raise any new or novel issues
and makes only non-substantive
changes to the rules. Therefore, the
Commission hereby waives the
operative delay and designates the
proposal as operative upon filing.12
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
8 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires a self-regulatory organization to
give the Commission written notice of its intent to
file the proposed rule change, along with a brief
description and text of the proposed rule change,
at least five business days prior to the date of filing
of the proposed rule change, or such shorter time
as designated by the Commission. The Exchange
has satisfied this requirement.
10 17 CFR 240.19b–4(f)(6).
11 17 CFR 240.19b–4(f)(6)(iii).
12 For purposes only of waiving the 30-day
operative delay, the Commission also has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
9 17
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Commission will institute proceedings
to determine whether the proposed rule
change should be approved or
disapproved.
IV. Solicitation of Comments
54707
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019–22139 Filed 10–9–19; 8:45 am]
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
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–87223; File No. SR–
NYSEArca–2019–55]
• 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–
CBOE–2019–088 on the subject line.
Self-Regulatory Organizations; NYSE
Arca, Inc.; Order Approving a
Proposed Rule Change To Amend
NYSE Arca Rule 8.700–E and To List
and Trade Shares of the Dynamic
Short Short-Term Volatility Futures
ETF
Paper Comments
October 4, 2019.
• 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–CBOE–2019–088. 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 website (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 website 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.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
comment submissions. You should
submit only information that you wish
to make available publicly. All
submissions should refer to File
Number SR–CBOE–2019–088 and
should be submitted on or before
October 31, 2019.
I. Introduction
On August 7, 2019, NYSE Arca, Inc.
(‘‘NYSE Arca’’ or ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
19b–4 thereunder,2 a proposal to: (1)
Amend NYSE Arca Rule 8.700–E to add
futures contracts and swaps on the Cboe
Volatility Index (‘‘VIX’’ or ‘‘VIX Index’’)
to the financial instruments that an
issue of Managed Trust Securities 3 may
hold; and (2) to list and trade shares
(‘‘Shares’’) of the Dynamic Short ShortTerm Volatility Futures ETF (‘‘Fund’’), a
PO 00000
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13 17
CFR 200.30–3(a)(12).
U.S.C.78s(b)(1).
2 17 CFR 240.19b–4.
3 Managed Trust Security means a security that is
registered under the Securities Act of 1933 (15
U.S.C. 77a), as amended (the ‘‘Securities Act’’), and
(i) is issued by a trust (‘‘Trust’’), or any series
thereof, that (1) is a commodity pool as defined in
the Commodity Exchange Act and regulations
thereunder, is not registered or required to be
registered as an investment company under the
Investment Company Act of 1940, as amended, and
is managed by a commodity pool operator
registered with the Commodity Futures Trading
Commission, and (2) holds long and/or short
positions in exchange-traded futures contracts and/
or certain currency forward contracts and/or swaps
selected by the Trust’s advisor consistent with the
Trust’s investment objectives, which will only
include exchange-traded futures contracts involving
commodities, commodity indices, currencies,
currency indices, stock indices, the EURO STOXX
50 Volatility Index (VSTOXX), fixed income
indices, interest rates and sovereign, private and
mortgage or asset backed debt instruments, and/or
forward contracts on specified currencies, and/or
swaps on stock indices, fixed income indices,
commodity indices, VSTOXX, commodities,
currencies, currency indices, or interest rates, each
as disclosed in the Trust’s prospectus as such may
be amended from time to time, and cash and cash
equivalents; and (ii) is issued and redeemed
continuously in specified aggregate amounts at the
next applicable net asset value. See NYSE Arca
Rule 8.700–E(c)(1).
1 15
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Federal Register / Vol. 84, No. 197 / Thursday, October 10, 2019 / Notices
series of Dynamic Shares Trust
(‘‘Trust’’) under proposed amended
NYSE Arca Rule 8.700–E. The proposed
rule change was published for comment
in the Federal Register on August 26,
2019.4 The Commission has received no
comments on the proposed rule change.
This order approves the proposed rule
change.
II. Summary of the Proposed Rule
Change 5
A. Proposed Amendments to NYSE Arca
Rule 8.700–E
NYSE Arca Rule 8.700–E governs the
listing and trading of Managed Trust
Securities. The Exchange proposes to
amend NYSE Arca Rule 8.700–E(c)(1) by
expanding the definition of ‘‘Managed
Trust Securities.’’ Currently, the
definition of Managed Trust Securities
specifies (among other things) that the
trust that issues Managed Trust
Securities may hold futures and swaps
overlying certain types of reference
assets, in addition to certain currency
forwards.6 The proposed rule change
would add the VIX Index to the list of
permitted reference assets underlying
such futures and swaps.
The Exchange states the following
regarding the VIX Index.7 The VIX
Index is an up-to-the-minute market
estimate of expected volatility that is
calculated by using real-time prices of
options on the S&P 500® Index (‘‘SPX
options’’) listed on Cboe Exchange, Inc.
(‘‘Cboe’’). It is designed to reflect
investors’ consensus view of future (30day) expected stock market volatility.
Only SPX options with Friday
expirations are used to calculate the VIX
Index. The VIX Index is calculated
between 2:15 a.m. Central Time (‘‘C.T.’’)
and 8:15 a.m. C.T. and between 8:30
a.m. C.T. and 3:15 p.m. C.T. The VIX
Index is calculated by using the
midpoints of real-time SPX option bid/
ask quotes. Only SPX options with more
than 23 days and less than 37 days to
the Friday SPX expiration are used to
calculate the VIX Index. These SPX
options are then weighted to yield a
constant, 30-day measure of the
expected volatility of the S&P 500
Index. VIX levels are calculated by Cboe
and disseminated at 15-second intervals
to market information vendors via the
Options Price Reporting Authority.
The Exchange states the following
regarding futures on the VIX Index
(‘‘VIX Futures’’ or ‘‘VIX Futures
4 See Securities Exchange Act Release No. 86714
(August 209, 2019), 84 FR 44642 (‘‘Notice’’).
5 For a complete description of the Exchange’s
proposal, see Notice, supra note 3.
6 See supra note 3
7 See Notice, supra note 4, 84 FR at 44644.
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Contracts’’).8 The Cboe Futures
Exchange (‘‘CFE’’) began listing and
trading VIX Futures’’ on March 26, 2004
under the ticker symbol VX. VIX
Futures reflect the market’s estimate of
the value of the VIX Index on various
expiration dates in the future.
According to the Registration
Statement,9 the value of a VIX Futures
Contract is based on the expected
reading of the VIX Index at the
expiration of such VIX Futures, and
therefore represents forward implied
volatility of the S&P 500 over the 30-day
period following the expiration of the
VIX Futures. As a result, a movement in
the VIX Index today will not necessarily
result in a corresponding movement in
the price of VIX Futures. VIX Futures,
which trade only on CFE, trade between
the hours of 8:30 a.m.–3:15 p.m. C.T.
The CFE is a member of the Intermarket
Surveillance Group (‘‘ISG’’). Monthly
and weekly expirations in VIX Futures
are available and trade nearly 24 hours
a day, five days a week. VIX Weekly
futures began trading on CFE in 2015.
B. Listing and Trading of the Shares
The Exchange proposes to list and
trade the Shares under proposed
amended NYSE Arca Rule 8.700–E. The
Exchange states the following regarding
the Fund. The Trust’s sponsor, Dynamic
Shares LLC (‘‘Sponsor’’), will serve as
its commodity pool operator upon its
registration with the Commodity
Futures Trading Commission and is not
registered or affiliated with a brokerdealer. Wilmington Trust Company is
the sole ‘‘Trustee’’ of the Trust. The
Nottingham Company will be the
‘‘Administrator’’ for the Fund.
Nottingham Shareholder Services, LLC
will serve as the ‘‘Transfer Agent’’ for
the Fund for ‘‘Authorized Participants.’’
Capital Investment Group, Inc. will
serve as the ‘‘Distributor’’ for the Fund.
The Fund will seek to provide investors
with inverse exposure to the implied
volatility of the broad-based, large-cap
U.S. equity market. Such exposure will
be for one full trading day. The Fund
will be actively managed and will not be
benchmarked to the VIX Index.10 The
pursuit of the Fund’s daily investment
objective means that the Fund’s return
for a period longer than a full trading
day will be the product of the series of
daily returns, with daily repositioned
exposure, for each trading day during
8 See
id. at 44644.
June 5, 2019, the Trust submitted to the
Commission its draft registration statement on Form
S–1 under the Securities Act.
10 The Fund does not seek to track the
performance of the VIX Index or the S&P 500® and
can be expected to perform very differently from the
VIX Index over all periods of time.
9 On
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Fmt 4703
Sfmt 4703
the relevant period. As a consequence,
the return for investors that invest for
periods less than a full trading day or
for a period different than a trading day
will not be the product of the return of
the Fund’s stated daily inverse
investment objective. Under normal
market conditions,11 the Fund will seek
to achieve its investment objective by
obtaining investment exposure to an
actively managed portfolio of short
positions in VIX Futures Contracts with
monthly expirations. The Fund expects
to primarily take short positions in VIX
Futures by shorting the next two near
term VIX Futures and rolling the nearest
month VIX Futures Contract to the next
month on a daily basis. As such, the
Fund expects to have a constant onemonth rolling short position in first and
second month VIX Futures. The Fund
also may hold cash and cash
equivalents, including U.S. Treasury
securities. The Fund will seek to
dynamically manage its notional
exposure to VIX Futures. For example,
when the VIX Index is below its
historical average, the Fund’s notional
exposure will be lower than a
traditional short VIX short term futures
ETF, which may maintain a fixed
notional exposure every day. When the
VIX Index is going up, the Fund will
gradually increase its notional exposure,
up to a ceiling of ¥0.5 times its net
asset value (‘‘NAV’’). The Fund expects
that its notional exposure will not
exceed ¥0.5 times its NAV, but that its
notional exposure may exceed ¥0.5
times its NAV during intraday trading
before recalibration.
III. Discussion and Commission
Findings
After careful review, the Commission
finds that the proposed rule change is
consistent with the requirements of
Section 6 of the Act 12 and the rules and
regulations thereunder applicable to a
national securities exchange.13 In
particular, the Commission finds that
the proposed rule change is consistent
with Section 6(b)(5) of the Act,14 which
requires, among other things, that the
Exchange’s rules be 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 a national market system, and, in
11 Normal market conditions’’ is defined in NYSE
Arca Rule 8.600–E(c)(5).
12 15 U.S.C. 78f.
13 In approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
14 15 U.S.C. 78f(b)(5).
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general, to protect investors and the
public interest. The Commission also
finds that the proposal is consistent
with Section 11A(a)(1)(C)(iii) of the
Act,15 which sets forth Congress’ finding
that it is in the public interest and
appropriate for the protection of
investors and the maintenance of fair
and orderly markets to assure the
availability to brokers, dealers, and
investors of information with respect to
quotations for, and transactions in,
securities.
Managed Trust Securities, (a) the trust
must have 50,000 or more Managed
Trust Securities issued and outstanding,
(b) the market value of all Managed
Trust Securities issued and outstanding
must be $1,000,000 or more, and (c)
there must be 50 or more record and/or
beneficial holders.19
Further, the Commission notes that
the Exchange has represented that its
surveillance procedures are adequate to
deter and detect violations of Exchange
rules.20
A. Exchange’s Proposal To Amend Rule
8.700–E
The Commission believes that the
proposal to amend NYSE Arca Rule
8.700–E(c)(1) to add futures contracts
and swaps on the VIX Index to the
financial instruments in which an issue
of Managed Trust Securities may hold
long and/or short positions is consistent
with Section 6(b)(5) of the Act. The
Commission notes that it has previously
approved: (1) The addition of VIX
Futures to the definition of Futures
Reference Assets applicable to ‘‘FuturesLinked Securities’’ in NYSE Arca Rule
5.2–E(j)(6) (Index-Linked Securities); 16
(2) the listing and trading on the
Exchange of series of Trust Issued
Receipts that reference VIX Futures; 17
and (3) an earlier expansion of NYSE
Arca Rule 8.700–E to add the VSTOXX
as a permitted reference asset to the
futures contracts and swaps that may be
held by trusts that issue Managed Trust
Securities.18
The existing initial and continued
listing criteria applicable to Managed
Trust Securities would continue to
apply, and the continued listing
standards require, among other things,
that: (1) The Disclosed Portfolio (as
defined in NYSE Arca Rule 8.700–
E(c)(2) be disseminated at least daily
and to all market participants at the
same time; (2) an intraday indicative
value (‘‘IIV’’) be calculated and widely
disseminated by one or more major
market data vendors at least every 15
seconds during the Exchange’s Core
Trading Session; and (3) following the
initial 12-month period after the
commencement of trading of an issue of
B. Exchange’s Proposal To List and
Trade the Shares
The Commission believes that the
proposal to list and trade the Shares is
consistent with Section 11A(a)(1)(C)(iii)
of the Act. Quotation and last-sale
information for the Shares will be
available via the Consolidated Tape
Association (‘‘CTA’’) high-speed line,
and the previous day’s closing price and
trading volume information for the
Shares will be published daily in the
financial section of newspapers.
Additionally, information regarding
market price and trading volume of the
Shares will be continually available on
a real-time basis throughout the day on
brokers’ computer screens and other
electronic services.
The Commission also believes that the
proposal to list and trade the Shares is
consistent with Section 6(b)(5) of the
Act. The Commission believes that the
proposal to list and trade the Shares is
reasonably designed to promote fair
disclosure of information that may be
necessary to price the Shares
appropriately and to prevent trading
when a reasonable degree of
transparency cannot be assured. The
Trust’s NAV and the NAV per Share
will be calculated and disseminated
daily. The Exchange will disseminate
for the Trust on a daily basis by means
of the CTA high-speed line information
with respect to the most recent NAV per
Share, and the number of Shares
outstanding. The Exchange also will
make available on its website daily
trading volume, closing prices and the
NAV per Share. The IIV for the Shares
will be calculated and disseminated by
one or more major market data vendors
at least every 15 seconds during the
Exchange’s Core Trading Session. On a
daily basis, the Trust will disclose on its
website (www.dynamicsharesetf.com)
for all of the assets held by the Fund the
following information: Name; ticker
symbol (if applicable); CUSIP or other
identifier (if applicable); description of
the holding; with respect to derivatives,
15 15
U.S.C. 78k–1(a)(1)(C)(iii).
Securities Exchange Act Release No. 58968
(November 17, 2008), 73 FR 71082 (November 24,
2008) (SR–NYSEArca–2008–111).
17 See Securities Exchange Act Release No. 58968
(November 17, 2008), 73 FR 71082 (November 24,
2008) (SR–NYSEArca–2008–111).
18 See Securities Exchange Act Release No. 82066
(November 13, 2007), 82 FR 54434 (November 17,
2017) (SR–NYSEArca–2017–85). The VSTOXX is
designed to reflect market expectations of near-term
to long-term volatility by measuring the square root
of the implied variances across all options of a
given time to expiration. See id. at 54434.
16 See
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19 See
20 See
PO 00000
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Notice, supra note 4, at 44647.
Frm 00125
Fmt 4703
Sfmt 4703
54709
the identity of the security, commodity,
index or other underlying asset; the
quantity or aggregate amount of the
holding as measured by par value,
notional value or amount, number of
contracts or number of units (if
applicable); maturity date; coupon rate
(if applicable); effective date or issue
date (if applicable); market value;
percentage weighting in the Disclosed
Portfolio; and expiration date (if
applicable). The Trust’s website
information will be publicly available at
no charge. Pricing for VIX, VIX Futures,
as well as the underlying SPX options,
will be available from major market data
vendors. Pricing for VIX Futures will
also be available from CFE. Pricing for
SPX options is also available from Cboe.
Price information for cash equivalents is
available from major market data
vendors.
The Exchange will obtain a
representation from the Trust that the
NAV and the NAV per Share will be
calculated daily and that the NAV, the
NAV per Share, and the composition of
the Disclosed Portfolio will be made
available to all market participants at
the same time. Further, trading in the
Shares will be subject to NYSE Arca
Rule 7.12–E and 8.700–E(e)(2)(D), which
set forth circumstances under which
trading in the Shares may be halted.
Trading may also be halted because of
market conditions or for reasons that, in
the view of the Exchange, make trading
in the Shares inadvisable.
The Exchange deems the Shares to be
equity securities, thus rendering trading
in the Shares subject to the Exchange’s
existing rules governing the trading of
equity securities. The Commission notes
that the Exchange has represented that
its surveillance procedures are adequate
to continue to properly monitor the
Exchange trading of the Shares in all
trading sessions.21
Additionally, the Reporting Authority
that provides the Disclosed Portfolio
must implement and maintain, or be
subject to, procedures designed to
prevent the use and dissemination of
material, non-public information
regarding the actual components of the
portfolio.22 The Exchange represents
that it has a general policy prohibiting
the distribution of material, non-public
information by its employees.
In support of this proposal, the
Exchange has made the following
representations:
1. The Trust will be subject to the
criteria in NYSE Arca Rule 8.700–E for
21 See
22 See
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Notice, supra note 4, at 44647.
NYSE Arca Rule 8.700–E(c)(2)(B)(ii).
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initial and continued listing of the
Shares.23
2. In the event (a) the Sponsor
becomes registered as a broker-dealer or
newly affiliated with a broker-dealer, or
(b) any new sponsor is a registered
broker-dealer or becomes affiliated with
a broker-dealer, it will implement and
maintain a fire wall with respect to its
relevant personnel or its broker-dealer
affiliate regarding access to information
concerning the composition and/or
changes to the Disclosed Portfolio.24
3. The Exchange has appropriate rules
to facilitate transactions in the Shares
during all trading sessions.25
4. Trading in the Shares will be
subject to the existing trading
surveillances administered by the
Exchange, as well as cross-market
surveillances administered by the
Financial Industry Regulatory Authority
(‘‘FINRA’’) on behalf of the Exchange,
and these procedures are adequate to
properly monitor Exchange trading of
the Shares in all trading sessions and to
deter and detect violations of Exchange
rules and applicable federal securities
laws.26
5. The Exchange or FINRA, on behalf
of the Exchange, or both, will
communicate as needed regarding
trading in the Shares and VIX Futures
with other markets or other entities that
are members of the ISG, and the
Exchange or FINRA, on behalf of the
Exchange, or both, may obtain trading
information regarding trading in the
Shares and VIX Futures from such
markets or entities. In addition, the
Exchange may obtain information
regarding trading in the Shares and VIX
Futures from markets or other entities
that are members of ISG or with which
the Exchange has in place a
comprehensive surveillance sharing
agreement. FINRA, on behalf of the
Exchange, is able to access, as needed,
trade information for certain cash
equivalents held by the Fund reported
to FINRA’s Trade Reporting and
Compliance Engine.27
6. Prior to the commencement of
trading, the Exchange will inform its
ETP Holders in an Information Bulletin
(‘‘Bulletin’’) of the special
characteristics and risks associated with
trading the Shares. Specifically, the
Bulletin will discuss the following: (1)
The procedures for purchases and
redemptions of Shares (and that Shares
are not individually redeemable); (2)
NYSE Arca Rule 9.2–E(a), which
imposes a duty of due diligence on its
ETP Holders to learn the essential facts
relating to every customer prior to
trading the Shares; (3) the requirement
that ETP Holders deliver a prospectus to
investors purchasing newly issued
Shares prior to or concurrently with the
confirmation of a transaction; (4) how
information regarding the IOPV and the
Disclosed Portfolio is disseminated; (5)
the risks involved in trading the Shares
during the opening and late trading
sessions when an updated IOPV will not
be calculated or publicly disseminated;
and (6) trading information.28
7. The Exchange represents that, for
the initial and continued listing of the
Shares, the Trust must be in compliance
with NYSE Arca Rule 5.3–E and Rule
10A–3 under the Act.29
8. A minimum of 100,000 Shares will
be outstanding at the start of trading on
the Exchange.30
9. All statements and representations
made in this filing regarding (a) the
description of the portfolio of the Fund,
(b) limitations on portfolio of the Fund,
or (c) the applicability of Exchange
listing rules specified in this rule filing
shall constitute continued listing
requirements for listing the Shares on
the Exchange.31
10. The issuer has represented to the
Exchange that it will advise the
Exchange of any failure by the Fund to
comply with the continued listing
requirements, and, pursuant to its
obligations under Section 19(g)(1) of the
Act, the Exchange will monitor for
compliance with the continued listing
requirements. If the Fund is not in
compliance with the applicable listing
requirements, the Exchange will
commence delisting procedures under
NYSE Arca Rule 5.5–E(m).32
This approval order is based on all of
the Exchange’s representations,
including those set forth above and in
the Notice.
For the foregoing reasons, the
Commission finds that the proposed
rule change is consistent with the Act 33
the rules and regulations thereunder
applicable to a national securities
exchange.
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,34 that the
28 See
id. at 44647–44648.
id. at 44647.
30 See id. at 44647.
31 See id. at 44647.
32 See id. at 44647.
33 15 U.S.C. 78f(b)(5).
34 15 U.S.C. 78s(b)(2).
29 See
23 See
Notice, supra note 4, at 44647.
id. at 44644.
25 See id. at 44647.
26 See id. at 44647.
27 See id. at 44647.
24 See
VerDate Sep<11>2014
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proposed rule change (SR–NYSEArca–
2019–55), be, and hereby is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.35
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019–22137 Filed 10–9–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Submission for OMB Review;
Comment Request
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736.
Extension:
Rule 19b–4 and Form 19b–4 Filings with
Respect to Proposed Rule Changes,
Securities-Based Swap Submissions, and
Advance Notices by Self-Regulatory
Organizations and the Security-Based
Swap Stay of Clearing Requirement; SEC
File No. 270–38, OMB Control No. 3235–
0045.
Notice is hereby given that pursuant
to the Paperwork Reduction Act of 1995
(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the
Securities and Exchange Commission
(‘‘Commission’’) has submitted to the
Office of Management and Budget
(‘‘OMB’’) a request for approval of
extension of the of the previously
approved collection of information
provided for in Rule 19b–4 (17 CFR
240.19b–4), under the Securities
Exchange Act of 1934 (‘‘Act’’) (15 U.S.C.
78a et seq.).
Section 19(b) of the Act (15 U.S.C.
78s(b)) requires each self-regulatory
organization (‘‘SRO’’) to file with the
Commission copies of any proposed
rule, or any proposed change in,
addition to, or deletion from the rules of
such SRO. Rule 19b–4 implements the
requirements of Section 19(b) by
requiring the SROs to file their proposed
rule changes on Form 19b–4 and by
clarifying which actions taken by SROs
are subject to the filing requirement set
forth in Section 19(b). Rule 19b–4(n)
requires a designated clearing agency to
provide the Commission advance notice
(‘‘Advance Notice’’) of any proposed
change to its rules, procedures, or
operations that could materially affect
the nature or level of risks presented by
such clearing agency. Rule 19b–4(o)
requires a registered clearing agency to
submit for a Commission determination
any security-based swap, or any group,
35 17
E:\FR\FM\10OCN1.SGM
CFR 200.30–3(a)(12).
10OCN1
Agencies
[Federal Register Volume 84, Number 197 (Thursday, October 10, 2019)]
[Notices]
[Pages 54707-54710]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-22137]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-87223; File No. SR-NYSEArca-2019-55]
Self-Regulatory Organizations; NYSE Arca, Inc.; Order Approving a
Proposed Rule Change To Amend NYSE Arca Rule 8.700-E and To List and
Trade Shares of the Dynamic Short Short-Term Volatility Futures ETF
October 4, 2019.
I. Introduction
On August 7, 2019, NYSE Arca, Inc. (``NYSE Arca'' or ``Exchange'')
filed with the Securities and Exchange Commission (``Commission''),
pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposal to: (1) Amend
NYSE Arca Rule 8.700-E to add futures contracts and swaps on the Cboe
Volatility Index (``VIX'' or ``VIX Index'') to the financial
instruments that an issue of Managed Trust Securities \3\ may hold; and
(2) to list and trade shares (``Shares'') of the Dynamic Short Short-
Term Volatility Futures ETF (``Fund''), a
[[Page 54708]]
series of Dynamic Shares Trust (``Trust'') under proposed amended NYSE
Arca Rule 8.700-E. The proposed rule change was published for comment
in the Federal Register on August 26, 2019.\4\ The Commission has
received no comments on the proposed rule change. This order approves
the proposed rule change.
---------------------------------------------------------------------------
\1\ 15 U.S.C.78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ Managed Trust Security means a security that is registered
under the Securities Act of 1933 (15 U.S.C. 77a), as amended (the
``Securities Act''), and (i) is issued by a trust (``Trust''), or
any series thereof, that (1) is a commodity pool as defined in the
Commodity Exchange Act and regulations thereunder, is not registered
or required to be registered as an investment company under the
Investment Company Act of 1940, as amended, and is managed by a
commodity pool operator registered with the Commodity Futures
Trading Commission, and (2) holds long and/or short positions in
exchange-traded futures contracts and/or certain currency forward
contracts and/or swaps selected by the Trust's advisor consistent
with the Trust's investment objectives, which will only include
exchange-traded futures contracts involving commodities, commodity
indices, currencies, currency indices, stock indices, the EURO STOXX
50 Volatility Index (VSTOXX), fixed income indices, interest rates
and sovereign, private and mortgage or asset backed debt
instruments, and/or forward contracts on specified currencies, and/
or swaps on stock indices, fixed income indices, commodity indices,
VSTOXX, commodities, currencies, currency indices, or interest
rates, each as disclosed in the Trust's prospectus as such may be
amended from time to time, and cash and cash equivalents; and (ii)
is issued and redeemed continuously in specified aggregate amounts
at the next applicable net asset value. See NYSE Arca Rule 8.700-
E(c)(1).
\4\ See Securities Exchange Act Release No. 86714 (August 209,
2019), 84 FR 44642 (``Notice'').
---------------------------------------------------------------------------
II. Summary of the Proposed Rule Change 5
---------------------------------------------------------------------------
\5\ For a complete description of the Exchange's proposal, see
Notice, supra note 3.
---------------------------------------------------------------------------
A. Proposed Amendments to NYSE Arca Rule 8.700-E
NYSE Arca Rule 8.700-E governs the listing and trading of Managed
Trust Securities. The Exchange proposes to amend NYSE Arca Rule 8.700-
E(c)(1) by expanding the definition of ``Managed Trust Securities.''
Currently, the definition of Managed Trust Securities specifies (among
other things) that the trust that issues Managed Trust Securities may
hold futures and swaps overlying certain types of reference assets, in
addition to certain currency forwards.\6\ The proposed rule change
would add the VIX Index to the list of permitted reference assets
underlying such futures and swaps.
---------------------------------------------------------------------------
\6\ See supra note 3
---------------------------------------------------------------------------
The Exchange states the following regarding the VIX Index.\7\ The
VIX Index is an up-to-the-minute market estimate of expected volatility
that is calculated by using real-time prices of options on the S&P
500[supreg] Index (``SPX options'') listed on Cboe Exchange, Inc.
(``Cboe''). It is designed to reflect investors' consensus view of
future (30-day) expected stock market volatility. Only SPX options with
Friday expirations are used to calculate the VIX Index. The VIX Index
is calculated between 2:15 a.m. Central Time (``C.T.'') and 8:15 a.m.
C.T. and between 8:30 a.m. C.T. and 3:15 p.m. C.T. The VIX Index is
calculated by using the midpoints of real-time SPX option bid/ask
quotes. Only SPX options with more than 23 days and less than 37 days
to the Friday SPX expiration are used to calculate the VIX Index. These
SPX options are then weighted to yield a constant, 30-day measure of
the expected volatility of the S&P 500 Index. VIX levels are calculated
by Cboe and disseminated at 15-second intervals to market information
vendors via the Options Price Reporting Authority.
---------------------------------------------------------------------------
\7\ See Notice, supra note 4, 84 FR at 44644.
---------------------------------------------------------------------------
The Exchange states the following regarding futures on the VIX
Index (``VIX Futures'' or ``VIX Futures Contracts'').\8\ The Cboe
Futures Exchange (``CFE'') began listing and trading VIX Futures'' on
March 26, 2004 under the ticker symbol VX. VIX Futures reflect the
market's estimate of the value of the VIX Index on various expiration
dates in the future. According to the Registration Statement,\9\ the
value of a VIX Futures Contract is based on the expected reading of the
VIX Index at the expiration of such VIX Futures, and therefore
represents forward implied volatility of the S&P 500 over the 30-day
period following the expiration of the VIX Futures. As a result, a
movement in the VIX Index today will not necessarily result in a
corresponding movement in the price of VIX Futures. VIX Futures, which
trade only on CFE, trade between the hours of 8:30 a.m.-3:15 p.m. C.T.
The CFE is a member of the Intermarket Surveillance Group (``ISG'').
Monthly and weekly expirations in VIX Futures are available and trade
nearly 24 hours a day, five days a week. VIX Weekly futures began
trading on CFE in 2015.
---------------------------------------------------------------------------
\8\ See id. at 44644.
\9\ On June 5, 2019, the Trust submitted to the Commission its
draft registration statement on Form S-1 under the Securities Act.
---------------------------------------------------------------------------
B. Listing and Trading of the Shares
The Exchange proposes to list and trade the Shares under proposed
amended NYSE Arca Rule 8.700-E. The Exchange states the following
regarding the Fund. The Trust's sponsor, Dynamic Shares LLC
(``Sponsor''), will serve as its commodity pool operator upon its
registration with the Commodity Futures Trading Commission and is not
registered or affiliated with a broker-dealer. Wilmington Trust Company
is the sole ``Trustee'' of the Trust. The Nottingham Company will be
the ``Administrator'' for the Fund. Nottingham Shareholder Services,
LLC will serve as the ``Transfer Agent'' for the Fund for ``Authorized
Participants.'' Capital Investment Group, Inc. will serve as the
``Distributor'' for the Fund. The Fund will seek to provide investors
with inverse exposure to the implied volatility of the broad-based,
large-cap U.S. equity market. Such exposure will be for one full
trading day. The Fund will be actively managed and will not be
benchmarked to the VIX Index.\10\ The pursuit of the Fund's daily
investment objective means that the Fund's return for a period longer
than a full trading day will be the product of the series of daily
returns, with daily repositioned exposure, for each trading day during
the relevant period. As a consequence, the return for investors that
invest for periods less than a full trading day or for a period
different than a trading day will not be the product of the return of
the Fund's stated daily inverse investment objective. Under normal
market conditions,\11\ the Fund will seek to achieve its investment
objective by obtaining investment exposure to an actively managed
portfolio of short positions in VIX Futures Contracts with monthly
expirations. The Fund expects to primarily take short positions in VIX
Futures by shorting the next two near term VIX Futures and rolling the
nearest month VIX Futures Contract to the next month on a daily basis.
As such, the Fund expects to have a constant one-month rolling short
position in first and second month VIX Futures. The Fund also may hold
cash and cash equivalents, including U.S. Treasury securities. The Fund
will seek to dynamically manage its notional exposure to VIX Futures.
For example, when the VIX Index is below its historical average, the
Fund's notional exposure will be lower than a traditional short VIX
short term futures ETF, which may maintain a fixed notional exposure
every day. When the VIX Index is going up, the Fund will gradually
increase its notional exposure, up to a ceiling of -0.5 times its net
asset value (``NAV''). The Fund expects that its notional exposure will
not exceed -0.5 times its NAV, but that its notional exposure may
exceed -0.5 times its NAV during intraday trading before recalibration.
---------------------------------------------------------------------------
\10\ The Fund does not seek to track the performance of the VIX
Index or the S&P 500[supreg] and can be expected to perform very
differently from the VIX Index over all periods of time.
\11\ Normal market conditions'' is defined in NYSE Arca Rule
8.600-E(c)(5).
---------------------------------------------------------------------------
III. Discussion and Commission Findings
After careful review, the Commission finds that the proposed rule
change is consistent with the requirements of Section 6 of the Act \12\
and the rules and regulations thereunder applicable to a national
securities exchange.\13\ In particular, the Commission finds that the
proposed rule change is consistent with Section 6(b)(5) of the Act,\14\
which requires, among other things, that the Exchange's rules be
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 a national
market system, and, in
[[Page 54709]]
general, to protect investors and the public interest. The Commission
also finds that the proposal is consistent with Section
11A(a)(1)(C)(iii) of the Act,\15\ which sets forth Congress' finding
that it is in the public interest and appropriate for the protection of
investors and the maintenance of fair and orderly markets to assure the
availability to brokers, dealers, and investors of information with
respect to quotations for, and transactions in, securities.
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78f.
\13\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
\14\ 15 U.S.C. 78f(b)(5).
\15\ 15 U.S.C. 78k-1(a)(1)(C)(iii).
---------------------------------------------------------------------------
A. Exchange's Proposal To Amend Rule 8.700-E
The Commission believes that the proposal to amend NYSE Arca Rule
8.700-E(c)(1) to add futures contracts and swaps on the VIX Index to
the financial instruments in which an issue of Managed Trust Securities
may hold long and/or short positions is consistent with Section 6(b)(5)
of the Act. The Commission notes that it has previously approved: (1)
The addition of VIX Futures to the definition of Futures Reference
Assets applicable to ``Futures-Linked Securities'' in NYSE Arca Rule
5.2-E(j)(6) (Index-Linked Securities); \16\ (2) the listing and trading
on the Exchange of series of Trust Issued Receipts that reference VIX
Futures; \17\ and (3) an earlier expansion of NYSE Arca Rule 8.700-E to
add the VSTOXX as a permitted reference asset to the futures contracts
and swaps that may be held by trusts that issue Managed Trust
Securities.\18\
---------------------------------------------------------------------------
\16\ See Securities Exchange Act Release No. 58968 (November 17,
2008), 73 FR 71082 (November 24, 2008) (SR-NYSEArca-2008-111).
\17\ See Securities Exchange Act Release No. 58968 (November 17,
2008), 73 FR 71082 (November 24, 2008) (SR-NYSEArca-2008-111).
\18\ See Securities Exchange Act Release No. 82066 (November 13,
2007), 82 FR 54434 (November 17, 2017) (SR-NYSEArca-2017-85). The
VSTOXX is designed to reflect market expectations of near-term to
long-term volatility by measuring the square root of the implied
variances across all options of a given time to expiration. See id.
at 54434.
---------------------------------------------------------------------------
The existing initial and continued listing criteria applicable to
Managed Trust Securities would continue to apply, and the continued
listing standards require, among other things, that: (1) The Disclosed
Portfolio (as defined in NYSE Arca Rule 8.700-E(c)(2) be disseminated
at least daily and to all market participants at the same time; (2) an
intraday indicative value (``IIV'') be calculated and widely
disseminated by one or more major market data vendors at least every 15
seconds during the Exchange's Core Trading Session; and (3) following
the initial 12-month period after the commencement of trading of an
issue of Managed Trust Securities, (a) the trust must have 50,000 or
more Managed Trust Securities issued and outstanding, (b) the market
value of all Managed Trust Securities issued and outstanding must be
$1,000,000 or more, and (c) there must be 50 or more record and/or
beneficial holders.\19\
---------------------------------------------------------------------------
\19\ See NYSE Arca Rule 8.700-E(e)(2).
---------------------------------------------------------------------------
Further, the Commission notes that the Exchange has represented
that its surveillance procedures are adequate to deter and detect
violations of Exchange rules.\20\
---------------------------------------------------------------------------
\20\ See Notice, supra note 4, at 44647.
---------------------------------------------------------------------------
B. Exchange's Proposal To List and Trade the Shares
The Commission believes that the proposal to list and trade the
Shares is consistent with Section 11A(a)(1)(C)(iii) of the Act.
Quotation and last-sale information for the Shares will be available
via the Consolidated Tape Association (``CTA'') high-speed line, and
the previous day's closing price and trading volume information for the
Shares will be published daily in the financial section of newspapers.
Additionally, information regarding market price and trading volume of
the Shares will be continually available on a real-time basis
throughout the day on brokers' computer screens and other electronic
services.
The Commission also believes that the proposal to list and trade
the Shares is consistent with Section 6(b)(5) of the Act. The
Commission believes that the proposal to list and trade the Shares is
reasonably designed to promote fair disclosure of information that may
be necessary to price the Shares appropriately and to prevent trading
when a reasonable degree of transparency cannot be assured. The Trust's
NAV and the NAV per Share will be calculated and disseminated daily.
The Exchange will disseminate for the Trust on a daily basis by means
of the CTA high-speed line information with respect to the most recent
NAV per Share, and the number of Shares outstanding. The Exchange also
will make available on its website daily trading volume, closing prices
and the NAV per Share. The IIV for the Shares will be calculated and
disseminated by one or more major market data vendors at least every 15
seconds during the Exchange's Core Trading Session. On a daily basis,
the Trust will disclose on its website (www.dynamicsharesetf.com) for
all of the assets held by the Fund the following information: Name;
ticker symbol (if applicable); CUSIP or other identifier (if
applicable); description of the holding; with respect to derivatives,
the identity of the security, commodity, index or other underlying
asset; the quantity or aggregate amount of the holding as measured by
par value, notional value or amount, number of contracts or number of
units (if applicable); maturity date; coupon rate (if applicable);
effective date or issue date (if applicable); market value; percentage
weighting in the Disclosed Portfolio; and expiration date (if
applicable). The Trust's website information will be publicly available
at no charge. Pricing for VIX, VIX Futures, as well as the underlying
SPX options, will be available from major market data vendors. Pricing
for VIX Futures will also be available from CFE. Pricing for SPX
options is also available from Cboe. Price information for cash
equivalents is available from major market data vendors.
The Exchange will obtain a representation from the Trust that the
NAV and the NAV per Share will be calculated daily and that the NAV,
the NAV per Share, and the composition of the Disclosed Portfolio will
be made available to all market participants at the same time. Further,
trading in the Shares will be subject to NYSE Arca Rule 7.12-E and
8.700-E(e)(2)(D), which set forth circumstances under which trading in
the Shares may be halted. Trading may also be halted because of market
conditions or for reasons that, in the view of the Exchange, make
trading in the Shares inadvisable.
The Exchange deems the Shares to be equity securities, thus
rendering trading in the Shares subject to the Exchange's existing
rules governing the trading of equity securities. The Commission notes
that the Exchange has represented that its surveillance procedures are
adequate to continue to properly monitor the Exchange trading of the
Shares in all trading sessions.\21\
---------------------------------------------------------------------------
\21\ See Notice, supra note 4, at 44647.
---------------------------------------------------------------------------
Additionally, the Reporting Authority that provides the Disclosed
Portfolio must implement and maintain, or be subject to, procedures
designed to prevent the use and dissemination of material, non-public
information regarding the actual components of the portfolio.\22\ The
Exchange represents that it has a general policy prohibiting the
distribution of material, non-public information by its employees.
---------------------------------------------------------------------------
\22\ See NYSE Arca Rule 8.700-E(c)(2)(B)(ii).
---------------------------------------------------------------------------
In support of this proposal, the Exchange has made the following
representations:
1. The Trust will be subject to the criteria in NYSE Arca Rule
8.700-E for
[[Page 54710]]
initial and continued listing of the Shares.\23\
---------------------------------------------------------------------------
\23\ See Notice, supra note 4, at 44647.
---------------------------------------------------------------------------
2. In the event (a) the Sponsor becomes registered as a broker-
dealer or newly affiliated with a broker-dealer, or (b) any new sponsor
is a registered broker-dealer or becomes affiliated with a broker-
dealer, it will implement and maintain a fire wall with respect to its
relevant personnel or its broker-dealer affiliate regarding access to
information concerning the composition and/or changes to the Disclosed
Portfolio.\24\
---------------------------------------------------------------------------
\24\ See id. at 44644.
---------------------------------------------------------------------------
3. The Exchange has appropriate rules to facilitate transactions in
the Shares during all trading sessions.\25\
---------------------------------------------------------------------------
\25\ See id. at 44647.
---------------------------------------------------------------------------
4. Trading in the Shares will be subject to the existing trading
surveillances administered by the Exchange, as well as cross-market
surveillances administered by the Financial Industry Regulatory
Authority (``FINRA'') on behalf of the Exchange, and these procedures
are adequate to properly monitor Exchange trading of the Shares in all
trading sessions and to deter and detect violations of Exchange rules
and applicable federal securities laws.\26\
---------------------------------------------------------------------------
\26\ See id. at 44647.
---------------------------------------------------------------------------
5. The Exchange or FINRA, on behalf of the Exchange, or both, will
communicate as needed regarding trading in the Shares and VIX Futures
with other markets or other entities that are members of the ISG, and
the Exchange or FINRA, on behalf of the Exchange, or both, may obtain
trading information regarding trading in the Shares and VIX Futures
from such markets or entities. In addition, the Exchange may obtain
information regarding trading in the Shares and VIX Futures from
markets or other entities that are members of ISG or with which the
Exchange has in place a comprehensive surveillance sharing agreement.
FINRA, on behalf of the Exchange, is able to access, as needed, trade
information for certain cash equivalents held by the Fund reported to
FINRA's Trade Reporting and Compliance Engine.\27\
---------------------------------------------------------------------------
\27\ See id. at 44647.
---------------------------------------------------------------------------
6. Prior to the commencement of trading, the Exchange will inform
its ETP Holders in an Information Bulletin (``Bulletin'') of the
special characteristics and risks associated with trading the Shares.
Specifically, the Bulletin will discuss the following: (1) The
procedures for purchases and redemptions of Shares (and that Shares are
not individually redeemable); (2) NYSE Arca Rule 9.2-E(a), which
imposes a duty of due diligence on its ETP Holders to learn the
essential facts relating to every customer prior to trading the Shares;
(3) the requirement that ETP Holders deliver a prospectus to investors
purchasing newly issued Shares prior to or concurrently with the
confirmation of a transaction; (4) how information regarding the IOPV
and the Disclosed Portfolio is disseminated; (5) the risks involved in
trading the Shares during the opening and late trading sessions when an
updated IOPV will not be calculated or publicly disseminated; and (6)
trading information.\28\
---------------------------------------------------------------------------
\28\ See id. at 44647-44648.
---------------------------------------------------------------------------
7. The Exchange represents that, for the initial and continued
listing of the Shares, the Trust must be in compliance with NYSE Arca
Rule 5.3-E and Rule 10A-3 under the Act.\29\
---------------------------------------------------------------------------
\29\ See id. at 44647.
---------------------------------------------------------------------------
8. A minimum of 100,000 Shares will be outstanding at the start of
trading on the Exchange.\30\
---------------------------------------------------------------------------
\30\ See id. at 44647.
---------------------------------------------------------------------------
9. All statements and representations made in this filing regarding
(a) the description of the portfolio of the Fund, (b) limitations on
portfolio of the Fund, or (c) the applicability of Exchange listing
rules specified in this rule filing shall constitute continued listing
requirements for listing the Shares on the Exchange.\31\
---------------------------------------------------------------------------
\31\ See id. at 44647.
---------------------------------------------------------------------------
10. The issuer has represented to the Exchange that it will advise
the Exchange of any failure by the Fund to comply with the continued
listing requirements, and, pursuant to its obligations under Section
19(g)(1) of the Act, the Exchange will monitor for compliance with the
continued listing requirements. If the Fund is not in compliance with
the applicable listing requirements, the Exchange will commence
delisting procedures under NYSE Arca Rule 5.5-E(m).\32\
---------------------------------------------------------------------------
\32\ See id. at 44647.
This approval order is based on all of the Exchange's representations,
including those set forth above and in the Notice.
For the foregoing reasons, the Commission finds that the proposed
rule change is consistent with the Act \33\ the rules and regulations
thereunder applicable to a national securities exchange.
---------------------------------------------------------------------------
\33\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
IV. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\34\ that the proposed rule change (SR-NYSEArca-2019-55), be, and
hereby is, approved.
---------------------------------------------------------------------------
\34\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\35\
---------------------------------------------------------------------------
\35\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-22137 Filed 10-9-19; 8:45 am]
BILLING CODE 8011-01-P