MEMORANDUM DATE: December 9, 2005 SUBJECT: Status of State Regulations Governing Hot Mix Asphalt Plants FROM: Bonnie Robinson TO: File I reviewed the state regulations governing the operations of hot mix asphalt plants in the Tri State Mining District states of Kansas, Missouri, and Oklahoma. The initial purpose of the study was to determine if the storage of chat ( and potential run on/ runoff and dust impacts) at such facilities are covered by those regulations. The Agency has concluded that the existing state regulation of those facilities is adequate. The regulations are summarized below.

Kansas Air Quality Under the Kansas Air Quality Act, the Kansas Dept. of Health and Environment ( KDHE) requires construction permits or approvals, and operating permits for hot mix asphalt plants under certain conditions.

° Construction Permits This program is intended to assure compliance with the National Ambient Air Quality Standards ( NAAQS) and Title III of the Clean Air Act Amendments of 1990. An air construction permit or approval is required before beginning to construct, set up, or modify a hot mix asphalt plant. A permit is required before construction may commence on proposed new or modified sources of air emissions, if potential emissions exceed certain levels ( includes 25 TPY of particulates, or 15 TPY of PM10; or 40 TPY of sulfur dioxide, VOCs, or nitrogen oxides). If a construction permit is not required, an operator still needs to obtain construction approval from KDHE before beginning new construction or modifications, if potential emissions equal or exceed certain levels ( includes 5 lbs. per hour of particulates, 2 lbs. per hour of PM10, 2 lbs. per hour of sulfur dioxide, or 50 lbs. per 24 hour period of VOCs and nitrogen oxides).

KDHE is currently updating its regulations, including changes to the construction permit and approval thresholds. The proposed construction or modification is reviewed to assure that potential emissions will comply with requirements of the State Implementation Plan ( SIP) and requirements regarding emissions of hazardous air pollutants. The SIP for compliance with NAAQS has been approved by the U. S. EPA. Kansas uses the construction permit program to implement several other state delegated federal programs applicable to new or modified sources, including the New Source Performance Standards ( NSPS), and the National Emission Standards for Hazardous Air Pollutants ( NESHAPS).

° Operating Permits 2 All hot mix asphalt plants must have an air quality operating permit from KDHE ( or from the Wyandotte County Health Department if located in that county). There are 3 classes of operating permits based on potential emissions. Most asphalt plants qualify for a Class II operating permit by rule by meeting the following conditions:

< facility has no other emission sources that, combined with the hot mix asphalt operation, would require a Class I permit because of their potential to emit.

< production of hot asphalt is limited to 250,000 tons during any consecutive 12 month period.

< facility uses pollution control equipment to limit particulate emissions to 0.04 grains per dry standard cubic foot of exhaust gas.

< facility keeps monthly records on asphalt production for at least 2 years.

< facility submits annual reports of asphalt production.

° Portable Equipment Relocation Requests KDHE requires notification before moving any portable, permitted equipment to another location within the state.

Water Quality ° Storm Water Hot mix asphalt plants have industrial activity subject to KDHE's storm water program. KDHE currently considers a facility to be in compliance if it has filed a Notice of Intent ( NOI) with KDHE. KDHE has not finalized the Kansas General Permit for Stormwater Discharges Associated from Industrial Activity. The main requirement will be for the operator to develop and implement a Stormwater Pollution Prevention plan.

° Wastewater Hot mix asphalt plants may be subject to National Pollutant Discharge Elimination System ( NPDES) requirements if a facility discharges industrial or domestic wastewater on the ground surface. If a facility uses a wastewater lagoon, it may need a Kansas Water Pollution Control Permit, even if there is no discharge.

Hazardous Waste ° Hot mix asphalt plants must comply with hazardous waste regulations administered by KDHE. The type and number of requirements that must be complied with depend on the quantity and type of hazardous waste generated.

Kansas Small Business Environmental Assistance Program ( SBEAP) ° This program is funded through the KDHE to help Kansas small businesses comply with environmental regulations and identify pollution prevention opportunities. SBEAP published a Fact Sheet on Asphalt Plants which provides guidance on air quality and other requirements. SBEAP also operates a toll free technical hotline and conducts visits to facilities to review compliance needs and identify pollution prevention opportunities. 3 Missouri MoDNR published a guidance document for preventing pollution at hot mix asphalt plants ( MoDNR, 2004). This document provides basic information about regulatory requirements.

Air Quality ° Air quality construction permits must be obtained from the MoDNR's Air Pollution Control Program ( APCP) before setting up, constructing, or modifying a hot mix asphalt plan, if there are potential emissions of any pollutant exceeding the NAAQS deminimis rate. ° Operating permits are required for asphalt plants that do not have a portable source construction permit, if the potential emissions of any pollutant exceed the deminimis emission rate. There are 3 levels of permitting based on potential emissions. ° Asphalt plants subject to NSPS must conduct initial performance testing and limit particulate emissions. ° Asphalt plants required to have construction or operating permits must submit Emission Inventory Questionnaires and pay emission fees annually to the APCP. ° APCP approval is required before moving permitted portable equipment to a new site. ° APCP is currently developing New Source Review permit application packages, called Ambient Air Quality/ Construction Permit Applications ( AAQ/ CPA), for hot mix asphalt plants. AAQ/ CPAs have been developed for concrete batch and processing plants. ° In 2000 APCP issued recommendations for permitting portable asphalt plants for temporary highway projects. The normal New Source Review ( NSR) permitting process for asphalt plants requires an ambient impact analysis from the installation's operation at the nearest property boundary. APCP recommended that the distance from the closest residence, rather than the nearest property boundary, be used for the ambient impact analysis when evaluating temporary highway projects where the asphalt plant is located on or adjacent to the project site. These asphalt plants would still be required to be in compliance with the NAAQS and to use best management practices ( e. g., dust suppression) ( MoDNR, 2000).

Water Quality ° Hot mix asphalt plants must have a discharge permit for storm water, process wastewater, and domestic wastewater discharges.

Hazardous Waste ° Hot mix asphalt plants must comply with hazardous waste regulations administered by MoDNR. The type and number of requirements that must be complied with depend on the quantity and type of hazardous waste generated.

Using Waste in Asphalt ° In Missouri, clean fill can be used in asphalt or as fill material. Clean fill includes uncontaminated soil, rock, sand, gravel, concrete, asphaltic concrete, cinderblocks and brick. An operator who wants to use contaminated materials such as mine tailings should 4 contact MoDNR to discuss whether the material is appropriate to use in asphalt and whether the facility can legally accept the material for use in asphalt.

Oklahoma Air Quality ° In 2002 OkDEQ's Air Quality Division ( AQD) issued a general permit to construct and/ or operate hot mix asphalt minor facilities ( i. e., with emissions less than major source thresholds). Facilities with major sources need to obtain individual permits. ° The general permit allows asphalt plant minor facilities to obtain a construction permit and operating permit for new facilities or for modifications to existing facilities. ° Most facility changes are pre approved so that modification of the authorization is not needed to add or remove equipment. ° The general permit allows the use of a facility wide emissions cap, not to equal or exceed 100 TPY of any regulated pollutant, nor to equal or exceed 10 TPY of any single HAP or 25 TPY of all HAPs ( major source thresholds). ° The permit requires facilities to comply with all applicable air pollution rules, federal NSPS and NESHAP requirements, and to not exceed ambient air quality standards. ° Pollution prevention ( P2) is integrated into this permit using the following approach:

< permit flexibility < P2 permit conditions ( e. g., annual emissions inventory)

< inclusion of P2 information in the application < accelerated permit reviews for facility changes involving P2 projects < extended compliance time for applications that include P2 measures < alternative or reduced monitoring for P2 measures that reduce emissions Water Quality ° Hot mix asphalt plants must have a discharge permit for storm water, process wastewater, and domestic wastewater discharges. ° OkDEQ's Water Quality Division issued a multi sector general permit for stormwater discharges associated with industrial activities for the State of Oklahoma. Hot mix asphalt plants are covered under Sector D of this permit ( OkDEQ, 2000).

References Kansas Kansas Small Business Environmental Assistance Program ( SBEAP), 2005. Asphalt Plants Fact Sheet, March 2005. http:// www. sbeap. org/ ppi/ publications/ Asphalt_ plant_ factsheet. pdf Kansas Dept. of Health and Environment ( KDHE), 2004. Class II Permit By Rule Application Form for Hot Mix Asphalt Facilities, Revision 4, October 18, 2004. http:// www. kdheks. gov/ air permit/ forms/ Class_ II_ PBR_ Hot Mix_ Asphalt. pdf 5 Kansas Dept. of Health and Environment ( KDHE), 2004. Kansas Air Quality Program Overview, Revision 5, June 9, 2004. http:// www. kdheks. gov/ air permit/ forms/ Overview. pdf Kansas Dept. of Health and Environment ( KDHE). Kansas Air Quality Regulations: K. A. R. 28 19 563 Class II Operating Permits; Permit By Rule; Hot Mix Asphalt Facilities. http:// www. kdheks. gov/ bar/ regs/ AIRREGS2004a2_ eml. pdf Kansas Dept. of Health and Environment ( KDHE). Construction Permits and Approvals Informational Sheet. http:// www. kdheks. gov/ air permit/ forms/ Informational_ Sheet. pdf KDHE Web Sites: Air Permitting and Compliance Section http:// www. kdheks. gov/ air permit/ index. html Stormwater Program http:// www. kdheks. gov/ stormwater/ index. html Wastewater Program http:// www. kdheks. gov/ indust/

Hazardous Waste Program http:// www. kdheks. gov/ waste/ bwm_ haz_ waste. html Kansas Small Business Environmental Assistance Program ( SBEAP) http:// www. sbeap. org/

Missouri MoDNR, 2004. Preventing Pollution at Hot Mix Asphalt Plants: A Guide to Environmental Compliance and Pollution Prevention for Asphalt Plants in Missouri. http:// www. dnr. mo. gov/ pubs/ pub545. pdf MoDNR, 2001. Missouri State Operating Permit, October 5, 2001. http:// www. dnr. mo. gov/ env/ wpp/ permits/ issued/ G490000. pdf MoDNR, 2000. Memo from Roger Randolph, APCP Director, to the APCP Procedures Manual, re Permitting Asphalt/ Concrete Plants for Temporary Highway Projects, April 10, 2000.

Missouri, 1999. Missouri Code of State Regulations, Rules of Department of Natural Resources, Division 10  Air Conservation Commission, Chapter 6: Air Quality Standards, Definitions, Sampling and Reference Methods and Air Pollution Control Regulations for the Entire State of Missouri.( 10 CSR 10 6), October 31, 1999. http:// www. sos. mo. gov/ adrules/ csr/ current/ 10csr/ 10c10 6a. pdf 6 MoDNR Web Sites: Air Issues http:// www. dnr. mo. gov/ air. htm Air Pollution Control Program http:// www. dnr. mo. gov/ env/ apcp/ index. html New Source Review Electronic Permit Application Packages http:// www. dnr. mo. gov/ env/ apcp/ NSRpermits. htm Water Information http:// www. dnr. mo. gov/ water. htm Oklahoma OkDEQ, 2003a. Limits on Potential to Emit   Focus: Hot Mix Asphalt Plants, in Air Quality Update, May 2003, Vol. 6 No. 2, p. 2. http:// www. deq. state. ok. us/ AQDnew/ newsletters/ 2003% 20May% 20AQ% 20update. pdf OkDEQ, 2003b. NSPS Applicability Worksheet   Hot Mix Asphalt Plant Example, May 9, 2003. http:// www. deq. state. ok. us/ AQDnew/ resources/ forms/ 100 600Example. pdf OkDEQ, 2003c. Hot Mix Asphalt Plant Applications Guidance, March 7, 2003.

OkDEQ, 2002a. Application Instructions: Asphalt Plant Minor Facility Air Quality General Permit, Dec. 12, 2002. http:// www. deq. state. ok. us/ AQDnew/ resources/ asphaltplantadvice. pdf OkDEQ, 2002b. Air Quality General Permit to Construct/ Operate Hot Mix Asphalt Facilities, Dec. 12, 2002. http:// www. deq. state. ok. us/ AQDnew/ permitting/ general/ asphalt% 20permit final% 20issuance. pdf OkDEQ, 2002c. Air Quality Division Memo Re General Permit to Construct/ Operate Minor Source Hot Mix Asphalt Facilities, Dec. 12, 2002. http:// www. deq. state. ok. us/ AQDnew/ permitting/ general/ asphalt% 20memo final% 20issuance. pdf OkDEQ, 2000. General Permit GP 00 01 for Stormwater Discharges from Industrial Facilities Under the Multi Sector Industrial General Permit within the State of Oklahoma, Oct. 2, 2000. http:// www. deq. state. ok. us/ WQDnew/ stormwater/ gp 00 01. pdf 7 OkDEQ Fact Sheets:

Air Quality Permits, November 4, 2003 http:// www. deq. state. ok. us/ factsheets/ air/ airpermits1. pdf Air Quality Minor Permit Modifications, June 11, 1999. http:// www. deq. state. ok. us/ factsheets/ air/ minormodif. pdf The Title V Program, Feb. 6, 1997. http:// www. deq. state. ok. us/ factsheets/ air/ TVFCTST. pdf The Title V Program FAQs, Aug. 31, 2005. http:// www. deq. state. ok. us/ factsheets/ air/ titleVfaq. pdf Fugitive Dust and Its Effects on Our Environment, Oct. 2002. http:// www. deq. state. ok. us/ factsheets/ air/ fugidust. pdf OkDEQ Web Sites: Air Quality Division http:// www. deq. state. ok. us/ AQDnew/ index. htm Air Quality Permitting http:// www. deq. state. ok. us/ AQDnew/ permitting/ index. htm Air Quality General Permits http:// www. deq. state. ok. us/ AQDnew/ permitting/ genperm. htm Water Quality Division http:// www. deq. state. ok. us/ WQDnew/ index. htm Land Protection Division   Hazardous Waste Program http:// www. deq. state. ok. us/ lpdnew/ hwindex. html List of Attachments K 1. Kansas Air Quality Program Overview K 2. Kansas SBEAP Asphalt Plants Fact Sheet K 3. Kansas Air Quality Regulations: K. A. R. 28 19 563 Class II Operating Permits; Permit By Rule; Hot Mix Asphalt Facilities K 4. KDHE Class II Permit By Rule Application Form for Hot Mix Asphalt Facilities K 5. KDHE Construction Permits and Approvals Informational Sheet 8 M 1. MoDNR: Preventing Pollution at Hot Mix Asphalt Plants: A Guide to Environmental Compliance and Pollution Prevention for Asphalt Plants in Missouri M 2. MoDNR Missouri State Operating Permit M 3. MoDNR Memo from Roger Randolph, APCP Director, to the APCP Procedures Manual, re Permitting Asphalt/ Concrete Plants for Temporary Highway Projects M 4. Missouri Code of State Regulations 10 CSR 10 6 O 1. OkDEQ Application Instructions: Asphalt Plant Minor Facility Air Quality General Permit O 2. OkDEQ Air Quality Division Memo Re General Permit to Construct/ Operate Minor Source Hot Mix Asphalt Facilities, Dec. 12, 2002 O 3. OkDEQ Air Quality Division General Permit to Construct/ Operate Minor Source Hot Mix Asphalt Facilities, Dec. 12, 2002 O 4. OkDEQ Limits on Potential to Emit   Focus: Hot Mix Asphalt Plants, in Air Quality Update O 5. OkDEQ General Permit GP 00 01 for Stormwater Discharges from Industrial Facilities Under the Multi Sector Industrial General Permit within the State of Oklahoma O 6. OkDEQ NSPS Applicability Worksheet   Hot Mix Asphalt Plant Example O 7. Hot Mix Asphalt Plant Applications Guidance O 8. OkDEQ Fact Sheet: Air Quality Permits O 9. OkDEQ Fact Sheet: Air Quality Minor Permit Modifications O 10. OkDEQ Fact Sheet: The Title V Program O 11. OkDEQ Fact Sheet: The Title V Program FAQs O 12. OkDEQ Fact Sheet: Fugitive Dust and Its Effects on Our Environment


[Federal Register Volume 79, Number 60 (Friday, March 28, 2014)]
[Notices]
[Pages 17625-17627]
[FR Doc No: 2014-06967]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-71779; File No. SR-NYSEArca-2014-26]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Relating to Changes
to the Means of Achieving the Investment Objective Applicable to the
db-X Ultra-Short Duration Fund

March 24, 2014.
    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 March 18, 2014, 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.
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    \1\ 15 U.S.C.78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to reflect changes to the means of achieving
the investment objective applicable to the db-X Ultra-Short Duration
Fund (the ``Fund''). The Commission has approved listing and trading of
shares of the Fund on the Exchange under NYSE Arca Equities Rule
8.600.\4\ The text of the proposed rule change is available on the
Exchange's Web site at www.nyse.com, at the principal office of the
Exchange, and at the Commission's Public Reference Room.
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    \4\ See Securities Exchange Act Release No. 71617 (February 26,
2014), 79 FR 12257 (March 4, 2014) (SR-NYSEArca-2013-135) (order
approving listing and trading on the Exchange of the db-X Ultra-
Short Duration Fund and db-X Managed Municipal Bond Fund) (``Prior
Order''). See also Securities Exchange Act Release No. 71269
(January 9, 2014), 79 FR 2725 (January 15, 2014) (SR-NYSEArca-2013-
135) (``Prior Notice,'' and together with the Prior Order, the
``Prior Release'').

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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 listing and trading on the Exchange of
shares (``Shares'') of the Fund, a series of the DBX ETF Trust (the
``Trust''),\5\ under NYSE Arca Equities Rule 8.600, which governs the
listing and trading of Managed Fund Shares.
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    \5\ See note 4, supra.
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    The Shares are offered by the Trust, a statutory trust organized
under the laws of the State of Delaware and registered with the
Commission as an open-end management investment company.\6\ The Fund is
a series of the DBX ETF Trust (``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. The Fund will
be managed by DBX Advisors LLC (the ``Adviser''). Deutsche Investment
Management Americas Inc. will be the investment sub-adviser for the
Fund (the ``Sub-Adviser'').
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    \6\ The Trust is registered under the Investment Company Act of
1940 (``1940 Act'') (15 U.S.C. 80a-1). On December 19, 2012, the
Trust filed with the Commission an amendment to its registration
statement on Form N-1A under the Securities Act of 1933 (15 U.S.C.
77a) (``Securities Act'') and the 1940 Act relating to the Fund
(File Nos. 333-170122 and 811-22487) (the ``Registration
Statement''). The description of the operation of the Trust and the
Fund herein is based, in part, on the Registration Statement. In
addition, the Commission has issued an order granting certain
exemptive relief to the Trust under the 1940 Act. See Investment
Company Act Release No. 30811 (November 26, 2013).
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    In this proposed rule change, the Exchange proposes to reflect
changes to the description of the measures the Adviser and Sub-Adviser
will utilize to implement the Fund's investment objective, as described
below.\7\
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    \7\ The changes described herein will be effective upon filing
with the Commission of another amendment to the Trust's Registration
Statement. See note 6, supra. The Adviser represents that the
Adviser and Sub-Adviser will manage the Fund in the manner described
in the Prior Release, and will not implement the changes described
herein until the instant proposed rule change is operative.
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    As described in the Prior Release, the investment objective of the
Fund will be to seek to provide current income consistent with total
return. Under normal market conditions,\8\ the Fund will seek to
achieve its investment objective by investing at least 65% of its net
assets in debt securities.\9\ As stated in the Prior Release, the Fund
may invest its remaining assets in other securities and financial
instruments, as described in the Prior Release. The Prior Release
states that the Fund generally intends to use interest rate swaps and/
or small amounts of currency forwards for duration management.
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    \8\ The term ``under normal market conditions'' includes, but is
not limited to, the absence of extreme volatility or trading halts
in the fixed income markets or the financial markets generally;
operational issues causing dissemination of inaccurate market
information; or force majeure type events such as systems failure,
natural or man-made disaster, act of God, armed conflict, act of
terrorism, riot or labor disruption, or any similar intervening
circumstance.
    \9\ As described in the Prior Release, debt securities will
include: (1) Debt securities of U.S. and foreign government agencies
and instrumentalities, and U.S. Government obligations (including
U.S. agency mortgage pass-through securities, as described below);
(2) U.S. and foreign corporate debt securities, mortgage-backed and
asset-backed securities, adjustable rate loans that have a senior
right to payment (``senior loans''), money market instruments, and
fixed and other floating-rate debt securities; and (3) taxable
municipal and tax-exempt municipal bonds. The Fund normally will
target an average portfolio duration (a measure of sensitivity to
interest rate changes) of no longer than one year.
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    The Exchange proposes to supplement the description in the Prior
Release of other securities and financial instruments in which the Fund
may invest for duration management to add interest rate futures and
U.S. Treasury futures. Interest rate futures and U.S. Treasury futures
will be included under the remaining assets in which the Fund may
invest (i.e., securities and financial instruments other than the at
least 65% of net assets invested in debt securities under normal market
conditions). All interest rate futures and U.S. Treasury futures in
which the Fund invests will be traded on a U.S. futures exchange
regulated by the Commodity Futures Trading Commission.
    The Exchange notes that the Commission has approved similar
representations relating to issues of Managed Fund Shares proposed to
be listed and traded on the Exchange.\10\
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    \10\ See, e.g., Prior Order (approving use of U.S. Treasury
futures by the db-X Managed Municipal Bond Fund), and Securities
Exchange Act Release No. 67001 (May 16, 2012), 77 FR 30341 (May 22,
2014) (SR-NYSEArca-2012-21) (order approving listing and trading on
the Exchange of First Trust North American Infrastructure Fund under
NYSE Arca Equities Rule 8.600).
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    In computing the Fund's net asset value per Share, U.S. Treasury
futures and interest rate futures will be valued at the settlement
price determined by the applicable exchange.
    Price information regarding U.S. Treasury futures and interest rate
futures will be available from the applicable exchange and from major
market data vendors.
    The Adviser represents that there is no change to the Fund's
investment objective from that described in the Prior Release. The Fund
will comply with all initial and continued listing requirements under
NYSE Arca Equities Rule 8.600.
    Except for the changes noted above, all other facts presented and
representations made in the Prior Release remain unchanged.
    All terms referenced but not defined herein are defined in the
Prior Release.
2. Statutory Basis
    The basis under the Act for this proposed rule change is the
requirement under Section 6(b)(5) \11\ that an exchange have rules that
are designed to prevent fraudulent and manipulative acts and practices,
to promote just and equitable principles of trade, to remove
impediments to, and perfect the mechanism of a free and open market
and, in general, to protect investors and the public interest.
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    \11\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes that the proposed rule change is designed to
prevent fraudulent and manipulative acts and practices in that the
Shares will be listed and traded on the Exchange pursuant to the
initial and continued listing criteria in NYSE Arca Equities Rule
8.600. With respect to the Fund investments in U.S. Treasury futures
and interest rate futures, the Exchange notes that the Commission has
approved similar representations relating to issues of Managed Fund
Shares proposed to be listed and traded on the Exchange.\12\ All
interest rate futures and U.S. Treasury futures in which the Fund
invests will be traded on a U.S. futures exchange. In computing the
Fund's net asset value per Share, U.S. Treasury futures and interest
rate futures will be valued at the settlement price determined by the
applicable exchange. Price information regarding U.S. Treasury futures
and interest rate futures will be available from the applicable
exchange and from major market data vendors, and the availability of
such information will

help deter fraudulent and manipulative acts and practices.
---------------------------------------------------------------------------

    \12\ See note 10, supra.
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    The proposed rule change is designed to promote just and equitable
principles of trade and to protect investors and the public interest in
that the Adviser represents that the proposed change will permit the
Adviser to use additional means to achieve the Fund's investment
objective through investments in interest rate futures and U.S.
Treasury futures for duration management. The Fund will comply with all
initial and continued listing requirements under NYSE Arca Equities
Rule 8.600.
    The proposed rule change is designed to perfect the mechanism of a
free and open market and, in general, to protect investors and the
public interest in that the Fund will comply with all initial and
continued listing requirements under NYSE Arca Equities Rule 8.600. The
Adviser represents that the purpose of this change is to permit Fund
investments in U.S. Treasury futures and interest rate futures for
duration management. The Commission has previously approved investments
in such futures contracts for other issues of Managed Fund Shares.\13\
The Adviser represents that there is no change to the Fund's investment
objective. Except for the change noted above, all other representations
made in the Prior Release remain unchanged.
---------------------------------------------------------------------------

    \13\ See note 10, 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 proposed change to the
Fund's means of achieving the investment objective will permit the Fund
to adjust its portfolio to allow the Fund to meet its investment
objectives by investing in U.S. Treasury futures and interest rate
futures and will enhance competition among issues of Managed Fund
Shares that invest in fixed income securities.

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

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

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

    Because the proposed rule change does not (i) significantly affect
the protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative for 30
days from the date on which it was filed, or such shorter time as the
Commission may designate, the proposed rule change has become effective
pursuant to Section 19(b)(3)(A) of the Act \14\ and Rule 19b-4(f)(6)
thereunder.\15\
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    \14\ 15 U.S.C. 78s(b)(3)(A).
    \15\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written
notice of its intent to file the proposed rule change, along with a
brief description and the text of the proposed rule change, at least
five business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission.
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    The Exchange has asked the Commission to waive the 30-day operative
delay so that the proposal may become operative immediately upon
filing. The Exchange states that waiver of this requirement will: (1)
Facilitate duration management by the Fund; (2) provide additional
means for the Adviser to meet the Fund's investment objective, which
remains unchanged; and (3) allow the Fund to meet its investment
objective in the most efficient manner possible. For these reasons, the
Commission believes that waiver of the 30-day operative delay is
consistent with the protection of investors and the public interest.
The Commission also notes that all the interest rate and U.S. Treasury
futures in which the Fund will invest will be listed on U.S. futures
exchanges regulated by the Commodity Futures Trading Commission.
Therefore, the Commission designates the proposed rule change to be
operative upon filing.\16\
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    \16\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File No. SR-NYSEArca-2014-26 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 No. SR-NYSEArca-2014-26. 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 Web site (http://www.sec.gov/rules/sro.shtml). Copies
of the submission, all subsequent amendments, all written statements
with respect to the proposed rule change that are filed with the
Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for Web site viewing and printing in
the Commission's Public Reference Room, 100 F Street NE., Washington,
DC 20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of such filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change; the Commission does not edit
personal identifying information from submissions. You should submit
only information that you wish to make available publicly. All
submissions should refer to File No. SR-NYSEArca-2014-26 and should be
submitted on or before April 18, 2014.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
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    \17\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-06967 Filed 3-27-14; 8:45 am]
BILLING CODE 8011-01-P