[Federal Register Volume 85, Number 204 (Wednesday, October 21, 2020)]
[Notices]
[Pages 67072-67074]
[FR Doc No: 2020-23244]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-90160; File No. SR-FINRA-2020-033]

Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Extend the Pilot Period Related to FINRA Rule
6121.02 (Market-Wide Circuit Breakers in NMS Stocks)

October 13, 2020.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on October 8, 2020, the Financial Industry Regulatory Authority, Inc.
(``FINRA'') filed with the Securities and Exchange Commission (``SEC''
or ``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by FINRA. FINRA has designated
the proposed rule change as constituting a ``non-controversial'' rule
change under paragraph (f)(6) of Rule 19b-4 under the Act,\3\ which
renders the proposal effective upon receipt of this filing by the
Commission. 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\ 17 CFR 240.19b-4.
    \3\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    FINRA is proposing to extend the pilot period related to FINRA Rule
6121.02 (Market-wide Circuit Breakers in NMS Stocks) until October 18,
2021.
    The text of the proposed rule change is available on FINRA's
website at http://www.finra.org, at the principal office of FINRA 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, FINRA included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. FINRA has prepared summaries, set forth in sections A,
B, and C below, of the most significant aspects of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

1. Purpose
    Rule 6121.02 addresses the circumstances under which FINRA shall
halt trading in all NMS Stocks due to extraordinary market volatility
(i.e., market-wide circuit breakers). The market-wide circuit breaker
(``MWCB'') mechanism under Rule 6121.02 was approved by the Commission
to operate on a pilot basis, the term of which was to coincide with the
pilot period for the Plan to Address Extraordinary Market Volatility
Pursuant to Rule 608 of Regulation NMS (the ``LULD Plan''),\4\
including any extensions to the pilot period for the LULD Plan.\5\ In
April 2019, the Commission approved an amendment to the LULD Plan for
it to operate on a permanent, rather than pilot, basis.\6\ In light of
the proposal to make the LULD Plan permanent, FINRA amended Rule
6121.02 to untie the pilot's effectiveness from that of the LULD Plan
and to extend the pilot's effectiveness to the close of business on
October 18, 2019.\7\ FINRA then further extended the pilot through
October 18, 2020.\8\ FINRA now proposes to amend Rule 6121.02 to extend
the pilot to the close of business on October 18, 2021. This filing
does not propose any substantive or additional changes to Rule 6121.02.
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    \4\ See Securities Exchange Act Release No. 67091 (May 31,
2012), 77 FR 33498 (June 6, 2012) (the ``Limit Up-Limit Down
Release''). The LULD Plan provides a mechanism to address
extraordinary market volatility in individual securities.
    \5\ See Securities Exchange Act Release Nos. 67090 (May 31,
2012), 77 FR 33531 (June 6, 2012) (Order Approving File No. SR-
FINRA-2011-054); and 68778 (January 31, 2013), 78 FR 8668 (February
6, 2013) (Notice of Filing and Immediate Effectiveness of File No.
SR-FINRA-2013-011) (Proposed Rule Change to Delay the Operative Date
of FINRA Rule 6121.02).
    \6\ See Securities Exchange Act Release No. 85623 (April 11,
2019), 84 FR 16086 (April 17, 2019) (Order Approving the Eighteenth
Amendment to the National Market System Plan To Address
Extraordinary Market Volatility).
    \7\ See Securities Exchange Act Release No. 85547 (April 8,
2019), 84 FR 14981 (April 12, 2019) (Notice of Filing and Immediate
Effectiveness of File No. SR-FINRA-2019-010).
    \8\ See Securities Exchange Act Release No. 87078 (September 24,
2019), 84 FR 51669 (September 30, 2019) (Notice of Filing and
Immediate Effectiveness of File No. SR-FINRA-2019-023).
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    The market-wide circuit breaker under Rule 6121.02 provides an
important, automatic mechanism that is invoked to promote stability and
investor confidence during a period of significant stress when
securities markets experience extreme broad-based declines. All U.S.
equity exchanges and

FINRA adopted uniform rules on a pilot basis relating to market-wide
circuit breakers in 2012 (``MWCB Rules''), which are designed to slow
the effects of extreme price movement through coordinated trading halts
across securities markets when severe price declines reach levels that
may exhaust market liquidity.\9\ Market-wide circuit breakers provide
for trading halts in all equities and options markets during a severe
market decline as measured by a single-day decline in the S&P 500
Index.
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    \9\ See Securities Exchange Act Release No. 67090 (May 31,
2012), 77 FR 33531 (June 6, 2012) (SR-BATS-2011-038; SR-BYX-2011-
025; SR-BX-2011-068; SR-CBOE-2011-087; SR-C2-2011-024; SR-CHX-2011-
30; SR-EDGA-2011-31; SR-EDGX-2011-30; SR-FINRA-2011-054; SR-ISE-
2011-61; SR-NASDAQ-2011-131; SR-NSX-2011-11; SR-NYSE-2011-48; SR-
NYSEAmex-2011-73; SR-NYSEArca-2011-68; SR-Phlx-2011-129) (Notice of
Filing of Amendments No. 1 and Order Granting Accelerated Approval
of Proposed Rule Changes as Modified by Amendments No. 1, Relating
to Trading Halts Due to Extraordinary Market Volatility).
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    Pursuant to Rule 6121.02, a market-wide trading halt will be
triggered if the S&P 500 Index declines in price by specified
percentages from the prior day's closing price of that index.
Currently, the triggers are set at three circuit breaker thresholds: 7%
(Level 1), 13% (Level 2), and 20% (Level 3). A market decline that
triggers a Level 1 or Level 2 halt after 9:30 a.m. ET and before 3:25
p.m. ET would halt market-wide trading for 15 minutes, while a similar
market decline at or after 3:25 p.m. ET would not halt market-wide
trading. If a Level 3 Market Decline occurs at any time during the
trading day, FINRA shall halt trading otherwise than on an exchange in
all NMS stocks for the remainder of the trading day.
    Since the MWCB pilot was last extended in October 2019, the MWCB
mechanism has proven itself to be an effective tool for protecting
markets through turbulent times. In the Spring of 2020, at the outset
of the worldwide COVID-19 pandemic, U.S. equities markets experienced
four MWCB Level 1 halts, on March 9, 12, 16, and 18, 2020. In each
instance, the markets halted as intended upon a 7% drop in the S&P 500
Index, and resumed as intended 15 minutes later.
    In response to these events, the previously-convened MWCB Taskforce
(``Taskforce'') reviewed the March 2020 halts and considered whether
any immediate changes to the MWCB mechanism should be made. The
Taskforce, consisting of representatives from equities exchanges,
futures exchanges, FINRA, broker-dealers, and other market
participants, had been assembled in early 2020 to consider more
generally potential changes to the MWCB mechanism. The Taskforce held
ten meetings in the Spring and Summer of 2020 that were attended by
Commission staff to consider, among other things: (1) Whether to retain
the S&P 500 Index as the standard for measuring market declines; (2)
whether halts that occur shortly after the 9:30 a.m. market open cause
more harm than good; and (3) what additional testing of the MWCB
mechanism should be done.
    After considering data and anecdotal reports of market
participants' experiences during the March 2020 MWCB events, the
Taskforce did not recommend immediate changes be made to the use of the
S&P 500 Index as the reference price against which market declines are
measured, or to the current MWCB mechanism which permits halts even
shortly after the 9:30 a.m. market open. The Taskforce recommended
creating a process for a backup reference price in the event that the
S&P 500 Index becomes unavailable, and enhancing functional MWCB
testing. The Taskforce also asked CME to consider modifying its rules
to enter into a limit-down state in the futures pre-market after a 7%
decline instead of 5%.
    On September 17, 2020, the Director of the Division of Trading and
Markets requested that the equities exchanges and FINRA prepare a more
complete study of the design and operation of the MWCB mechanism and
the LULD Plan during the period of volatility in the Spring of 2020.
Based on the results of that study, FINRA expects to work with the
Commission, the other self-regulatory organizations (``SROs''), and
market participants to determine if any additional changes to the MWCB
mechanism should be made, including consideration of rules and
procedures for the periodic testing of the MWCB mechanism with industry
participants.
    In addition to the work of the Taskforce, FINRA and the other SROs
moved forward in 2019 and 2020 with a plan to normalize their Day 2
opening procedures after a Level 3 MWCB halt, such that trading would
reopen on Day 2 as it would on any other trading day. FINRA filed a
rule change to that effect in March 2020.\10\
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    \10\ See Securities Exchange Act Release No. 88425 (March 19,
2020), 85 FR 16971 (March 25, 2020) (Notice of Filing and Immediate
Effectiveness of SR-FINRA-2020-009).
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    FINRA has filed the proposed rule change for immediate
effectiveness and has requested that the SEC waive the requirement that
the proposed rule change not become operative for 30 days from the date
of filing, so that FINRA can implement the proposed rule change
immediately.
2. Statutory Basis
    FINRA believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(6) of the Act,\11\ which requires, among
other things, that FINRA rules must 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
general, to protect investors and the public interest. The market-wide
circuit breaker mechanism under Rule 6121.02 is an important, automatic
mechanism that is invoked to promote stability and investor confidence
during a period of significant stress when securities markets
experience extreme broad-based declines. Extending the market-wide
circuit breaker pilot under Rule 6121.02 for an additional year would
ensure the continued, uninterrupted operation of a consistent mechanism
to halt trading across the U.S. markets while FINRA and the other SROs
study the design and operation of the MWCB mechanism and the LULD Plan
during the period of volatility in the Spring of 2020. Based on the
results of that study, FINRA expects to work with the Commission, the
other SROs, and market participants to determine if any additional
changes to the MWCB mechanism should be made, including consideration
of rules and procedures for the periodic testing of the MWCB mechanism
with industry participants.
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    \11\ 15 U.S.C. 78o-3(b)(6).
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    FINRA also believes that the proposed rule change promotes just and
equitable principles of trade in that it promotes transparency and
uniformity across markets concerning when and how to halt trading in
all NMS stocks as a result of extraordinary market volatility. Based on
the foregoing, FINRA believes the benefits to market participants from
the MWCB under Rule 6121.02 should continue on a pilot basis because
the MWCB will promote fair and orderly markets, and protect investors
and the public interest.

B. Self-Regulatory Organization's Statement on Burden on Competition

    FINRA does not believe that the proposed rule change will result in
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act because the proposal would
ensure the continued, uninterrupted operation of a consistent mechanism
to halt trading across the

U.S. markets while FINRA and the other SROs study the design and
operation of the MWCB mechanism and the LULD Plan during the period of
volatility in the Spring of 2020.
    Further, FINRA understands that other SROs will file proposals to
extend their rules regarding the market-wide circuit breaker pilot.
Thus, the proposed rule change will help to ensure consistency across
market centers without implicating any competitive issues.

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

    Written comments were neither solicited nor received.

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

    FINRA has designated this rule filing as non-controversial under
Section 19(b)(3)(A) \12\ of the Act and Rule 19b-4(f)(6) \13\
thereunder. 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 and Rule 19b-
4(f)(6) thereunder.\14\
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    \12\ 15 U.S.C. 78s(b)(3)(A).
    \13\ 17 CFR 240.19b-4(f)(6).
    \14\ In addition, Rule 19b-4(f)(6)(iii) requires FINRA 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 filing of the
proposed rule change, or such shorter time as designated by the
Commission. The Commission has waived this requirement.
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    A proposed rule change filed under Rule 19b-4(f)(6) \15\ normally
does not become operative for 30 days after the date of filing.
However, pursuant to Rule 19b-4(f)(6)(iii),\16\ the Commission may
designate a shorter time if such action is consistent with the
protection of investors and the public interest. FINRA has asked the
Commission to waive the 30-day operative delay so that the proposal may
become operative upon filing. Extending the pilot for an additional
year will allow the uninterrupted operation of the existing pilot while
FINRA, and the other SROs conduct a study of the MWCB mechanism in
consultation with market participants and determine if any additional
changes to the MWCB mechanism should be made, including consideration
of rules and procedures for the periodic testing of the MWCB mechanism
with industry participants. Therefore, the Commission believes that
waiving the 30-day operative delay is consistent with the protection of
investors and the public interest. The Commission hereby designates the
proposed rule change to be operative upon filing.\17\
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    \15\ Id.
    \16\ 17 CFR 240.19b-4(f)(6)(iii).
    \17\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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    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 (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-FINRA-2020-033 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-FINRA-2020-033. 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 (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 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 a.m. and 3
p.m. Copies of such filing also will be available for inspection and
copying at the principal office of FINRA. 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-
FINRA-2020-033 and should be submitted on or before November 12, 2020.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
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    \18\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-23244 Filed 10-20-20; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 81, Number 250 (Thursday, December 29, 2016)]
[Notices]
[Pages 96162-96163]
[FR Doc No: 2016-31502]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

[Summary Notice No. PE-2016-130]

Petition for Exemption; Summary of Petition Received; Leading
Edge Associates, Inc.

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice.

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SUMMARY: This notice contains a summary of a petition seeking relief
from specified requirements of Title 14 of the Code of Federal
Regulations. The purpose of this notice is to improve the public's
awareness of, and participation in, the FAA's exemption process.
Neither publication of this notice nor the inclusion or omission of
information in the summary is intended to affect the legal status of
the petition or its final disposition.

DATES: Comments on this petition must identify the petition docket
number and must be received on or before January 18, 2017.

ADDRESSES: Send comments identified by docket number FAA-2016-9423
using any of the following methods:
     Federal eRulemaking Portal: Go to http://www.regulations.gov and follow the online instructions for sending your
comments electronically.
     Mail: Send comments to Docket Operations, M-30; U.S.
Department of Transportation (DOT), 1200 New Jersey Avenue SE., Room
W12-140, West Building Ground Floor, Washington, DC 20590-0001.
     Hand Delivery or Courier: Take comments to Docket
Operations in Room W12-140 of the West Building Ground Floor at 1200
New Jersey Avenue SE., Washington, DC, between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal holidays.
     Fax: Fax comments to Docket Operations at<PHONE_NUMBER>.
    Privacy: In accordance with 5 U.S.C. 553(c), DOT solicits comments
from the public to better inform its rulemaking process. DOT posts
these comments, without edit, including any personal information the
commenter provides, to

http://www.regulations.gov, as described in the system of records
notice (DOT/ALL-14 FDMS), which can be reviewed at http://www.dot.gov/privacy.
    Docket: Background documents or comments received may be read at
http://www.regulations.gov at any time. Follow the online instructions
for accessing the docket or go to the Docket Operations in Room W12-140
of the West Building Ground Floor at 1200 New Jersey Avenue SE.,
Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday,
except Federal holidays.

FOR FURTHER INFORMATION CONTACT: Dan Ngo,<PHONE_NUMBER>, 800
Independence Avenue SW., Washington, DC 20591.
    This notice is published pursuant to 14 CFR 11.85.

    Issued in Washington, DC, on December 21, 2016.
Lirio Liu,
Director, Office of Rulemaking.

Petition for Exemption

    Docket No.: FAA-2016-9423.
    Petitioner: Leading Edge Associates, Inc.
    Section(s) of 14 CFR Affected: Sec. Sec.  61.23(a) and (c),
61.101(e)(4) and (5), 61.113(a) and (b), 61.315(a), 91.7(a), 91.119(c),
91.121, 91.151(a)(1) and (b), 91.405(a), 91.407(a)(1), 91.409(a)(1) and
(2), 91.417(a) and (b), 137.19(c); 137.19(d); 137.19(e)(2)(ii), (iii),
and (v); 137.31(a); 137.31(b); 137.33(a); and 137.42
    Description of Relief Sought: The petitioner is requesting relief
in order to operate the PrecisionVision 10 UAS for mosquito
adulticiding and larvaciding in the vector markets using EPA approved,
Federally labeled and registered products in the NAS.

[FR Doc. 2016-31502 Filed 12-28-16; 8:45 am]
 BILLING CODE 4910-13-P


[Federal Register Volume 76, Number 70 (Tuesday, April 12, 2011)]
[Notices]
[Pages 20401-20406]
[FR Doc No: 2011-8725]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-64224; File No. SR-NYSEArca-2011-11]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
of Proposed Rule Change Relating to the Listing and Trading of the
Guggenheim Enhanced Core Bond ETF and Guggenheim Enhanced Ultra-Short
Bond ETF

April 7, 2011.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on March 24, 2011, NYSE Arca, Inc. (``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 Exchange. 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\ 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 list and trade the following under NYSE
Arca Equities Rule 8.600: Guggenheim Enhanced Core Bond ETF and
Guggenheim Enhanced Ultra-Short Bond ETF. The text of the proposed rule
change is available at the Exchange, the Commission's Public Reference
Room, and http://www.nyse.com.

II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to list and trade the following Managed Fund
Shares \3\ (``Shares'') under NYSE Arca Equities Rule 8.600: Guggenheim
Enhanced Core Bond ETF and Guggenheim Enhanced Ultra-Short Bond ETF
(each a ``Fund,'' and, collectively, ``Funds'').\4\ The Shares will be
offered by the Claymore Exchange-Traded Fund 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.\5\
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    \3\ 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) (``1940 Act'') organized as an
open-end investment company or similar entity that invests in a
portfolio of securities selected by its investment adviser
consistent with its investment objectives and policies. In contrast,
an open-end investment company that issues Investment Company Units,
listed and traded on the Exchange under NYSE Arca Equities Rule
5.2(j)(3), seeks to provide investment results that correspond
generally to the price and yield performance of a specific foreign
or domestic stock index, fixed income securities index, or
combination thereof.
    \4\ The Commission previously approved listing and trading on
the Exchange of the following actively managed funds under Rule
8.600. See Securities Exchange Act Release Nos. 57801 (May 8, 2008),
73 FR 27878 (May 14, 2008) (SR-NYSEArca-2008-31) (order approving
Exchange listing and trading of twelve actively-managed funds of the
WisdomTree Trust); 61365 (January 15, 2010), 75 FR 4124 (January 26,
2010) (SR-NYSEArca-2009-114) (order approving listing and trading of
Grail McDonnell Fixed Income ETFs); and 60981 (November 10, 2009),
74 FR 59594 (November 18, 2009) (SR-NYSEArca-2009-79) (order
approving listing of five fixed income funds of the PIMCO ETF
Trust).
    \5\ The Trust is registered under the 1940 Act. On July 26,
2010, the Trust filed with the Commission Form N-1A under the
Securities Act of 1933 (15 U.S.C. 77a) (``Securities Act'') relating
to the Funds (File Nos. 333-134551 and 811-21906) (``Registration
Statement''). The description of the operation of the Trust and the
Funds herein is based on the Registration Statement.
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    The investment adviser for the Funds is Claymore Advisors, LLC
(``Investment Adviser''). The Bank of New York Mellon is the custodian
and transfer agent for the Funds. Claymore Securities, Inc. is the
distributor for the Funds.
    Commentary .06 to Rule 8.600 provides that, if the investment
adviser to the Investment Company issuing Managed Fund Shares is
affiliated with a broker-dealer, such investment adviser shall erect a
``fire wall'' between the investment adviser and the broker-dealer with
respect to access to information concerning the composition and/or
changes to such Investment Company portfolio.\6\ In addition,
Commentary .06 further requires that personnel who make decisions on
the open-end fund's portfolio composition must be subject to procedures
designed to prevent the use and dissemination of material nonpublic
information regarding the open-end fund's portfolio. The Investment
Adviser is affiliated with a broker-dealer and has represented that it
has implemented a fire wall with respect to its broker-

dealer affiliate regarding access to information concerning the
composition and/or changes to the portfolio. In the event (a) the
Investment Adviser becomes newly affiliated with a broker-dealer, or
(b) any new adviser or sub-adviser becomes affiliated with a broker-
dealer, they will implement a fire wall with respect to such broker-
dealer regarding access to information concerning the composition and/
or changes to the portfolio.
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    \6\ An investment adviser to an open-end fund is required to be
registered under the Investment Advisers Act of 1940 (``Advisers
Act''). As a result, the investment adviser is subject to the
provisions of Rule 204A-1 under the Advisers Act relating to codes
of ethics. This Rule requires investment advisers to adopt a code of
ethics that reflects the fiduciary nature of the relationship to
clients as well as compliance with other applicable securities laws.
Accordingly, procedures designed to prevent the communication and
misuse of non-public information by an investment adviser must be
consistent with Rule 204A-1 under the Advisers Act. The Exchange
represents that the Investment Adviser and related personnel, are
subject to Advisers Act Rule 204A-1. In addition, Rule 206(4)-7
under the Advisers Act makes it unlawful for an investment adviser
to provide investment advice to clients unless such investment
adviser has (i) Adopted and implemented written policies and
procedures reasonably designed to prevent violation, by the
investment adviser and its supervised persons, of the Advisers Act
and the Commission rules adopted thereunder; (ii) implemented, at a
minimum, an annual review regarding the adequacy of the policies and
procedures established pursuant to subparagraph (i) above and the
effectiveness of their implementation; and (iii) designated an
individual (who is a supervised person) responsible for
administering the policies and procedures adopted under subparagraph
(i) above.
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Guggenheim Enhanced Core Bond ETF
    According to the Registration Statement, the investment objective
of the Guggenheim Enhanced Core Bond ETF is to seek total return,
comprised of income and capital appreciation. The Fund will use a
quantitative strategy to seek total returns, comprised of income and
capital appreciation, and risk-adjusted returns in excess of the
Barclays Capital U.S. Aggregate Bond Index (``Benchmark'') while
maintaining a low risk profile versus the Benchmark. The Fund's
quantitative strategy attempts to identify relative mispricing among
the instruments of a given asset class and estimate future returns
which may arise from the correction of these mispricing levels. The
quantitative portfolio construction process then attempts to maximize
expected returns due to issue-specific mispricing while controlling for
interest rate and credit spread (i.e., differences in yield between
different debt instruments arising from differences in credit risk)
risks. The average duration of the Fund's debt holdings is expected to
be generally similar to the average duration of the Benchmark
components.
    The Fund primarily will invest in U.S. dollar-denominated
investment grade debt securities, rated Baa or higher by Moody's
Investors Service, Inc. (``Moody's''), or equivalently rated by
Standard & Poor's Rating Group (``S&P'') or Fitch Investor Services
(``Fitch'') or, if unrated, determined by the Investment Adviser to be
of comparable quality.\7\ The Fund may invest, without limitation, in
U.S. dollar-denominated debt securities of foreign issuers. The Fund
may also invest in debt securities denominated in foreign currencies.
The Investment Adviser may attempt to reduce foreign currency exchange
rate risk by entering into contracts with banks, brokers, or dealers to
purchase or sell securities or foreign currencies at a future date
(``forward contracts''). The Fund may invest no more than 10% in high
yield securities (``junk bonds''), which are debt securities that are
rated below investment grade by nationally recognized statistical
rating organizations, or are unrated securities that the Investment
Adviser believes are of comparable quality.
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    \7\ The Investment Adviser's analysis is comprised of multiple
elements including collateral and counterparty risk, structural
analysis, quantitative analysis, and relative value/market value at
risk analysis. Evaluation is also applied to collateral, historical
market data, and proprietary statistical models to evaluate specific
transactions. This analysis is applied against the macroeconomic
outlook, geopolitical issues as well as considerations that more
directly affect the company's industry to determine an internally
assigned credit rating.
---------------------------------------------------------------------------

    The Fund may invest in a wide range of fixed income instruments
selected from, but not limited to, the following sectors: U.S. Treasury
securities, corporate bonds, emerging market debt, and non-dollar
denominated sovereign and corporate debt.\8\ The Fund may invest up to
10% of its assets in mortgage-backed securities (``MBS'') or in other
asset-backed securities.\9\ This limitation does not apply to
securities issued or guaranteed by federal agencies and/or U.S.
government sponsored instrumentalities, such as the Government National
Mortgage Administration (``GNMA''), the Federal Housing Administration
(``FHA''), the Federal National Mortgage Association (``FNMA''), and
the Federal Home Loan Mortgage Corporation (``FHLMC'').
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    \8\ The Fund will invest only in securities that the Investment
Adviser deems to be sufficiently liquid. While corporate bonds and
emerging market debt generally must have $200 million or more par
amount outstanding and significant par value traded to be considered
as an eligible investment, at least 80% of issues of corporate bonds
or corporate debt held by the Fund must have $200 million or more
par amount outstanding. The strategy follows an active quantitative
investment process that seeks excess returns to the Benchmark. The
strategy selects securities using a rigorous portfolio construction
approach to tightly control independent risk exposures such as fixed
income sector weights, sector specific yield curves, credit spreads,
prepayment risks, and others. Within those risk constraints, the
strategy utilizes relative value estimates to select individual
securities that can provide risk adjusted outperformance relative to
the Benchmark.
    \9\ The Fund may invest in MBS or other asset-backed securities
issued or guaranteed by private issuers. The MBS in which the Fund
may invest may also include residential mortgage-backed securities
(``RMBS''), collateralized mortgage obligations (``CMOs''), and
commercial mortgage-backed securities (``CMBS''). The asset-backed
securities in which the Fund may invest include collateralized debt
obligations (``CDOs''). CDOs include collateralized bond obligations
(``CBOs''), collateralized loan obligations (``CLOs'') and other
similarly structured securities. A CBO is a trust which is backed by
a diversified pool of high risk, below investment grade fixed income
securities. A CLO is a trust typically collateralized by a pool of
loans, which may include, among others, domestic and foreign senior
secured loans, senior unsecured loans, and subordinate corporate
loans, including loans that may be rated below investment grade or
equivalent unrated loans.
---------------------------------------------------------------------------

    According to the Registration Statement, the Fund may obtain
exposure to the securities in which it normally invests by engaging in
various investment techniques, including, but not limited to, forward
purchase agreements, mortgage dollar roll, and ``TBA'' mortgage
trading.\10\ The Fund also may invest directly in exchange-traded funds
(``ETFs'') and other investment companies that provide exposure to
fixed income securities similar to those securities in which the Fund
may invest in directly.
---------------------------------------------------------------------------

    \10\ A mortgage dollar roll involves the sale of a MBS by one of
the Funds and its agreement to repurchase the instrument (or one
which is substantially similar) at a specified time and price. A TBA
transaction is a method of trading MBS. In a TBA transaction, the
buyer and seller agree upon general trade parameters such as agency,
settlement date, par amount, and price. The actual pools delivered
generally are determined two days prior to the settlement date.
---------------------------------------------------------------------------

    The Fund will normally invest at least 80% of its net assets in
fixed income securities.
Guggenheim Enhanced Ultra-Short Bond ETF
    According to the Registration Statement, the investment objective
of the Guggenheim Enhanced Ultra-Short Bond ETF is to seek maximum
current income, consistent with preservation of capital and daily
liquidity. The Fund uses a low duration strategy to seek to outperform
the 1-3 month Treasury Bill Index in addition to providing returns in
excess of those available in U.S. Treasury bills, government repurchase
agreements, and money market funds, while providing preservation of
capital and daily liquidity. The Fund is not a money market fund and
thus does not seek to maintain a stable net asset value of $1.00 per
Share.
    The Fund expects, under normal circumstances,\11\ to hold a
diversified portfolio of fixed income instruments of varying
maturities, but that have an average duration of less than 1 year. The
Fund primarily will invest 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 the Investment Adviser to
be of comparable quality.\12\ The Fund may invest, without limitation,
in U.S. dollar-denominated debt securities of foreign issuers. The Fund
may also invest in debt securities denominated in

foreign currencies. The Investment Adviser may attempt to reduce
foreign currency exchange rate risk by entering into contracts with
banks, brokers, or dealers to purchase or sell securities or forward
contracts. The Fund may invest no more than 10% in junk bonds. The Fund
may also invest in municipal securities.
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    \11\ The term ``under normal market circumstances'' 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.
    \12\ See note 7, supra.
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    The Fund may invest a substantial portion of its assets in short-
term instruments such as commercial paper \13\ and/or repurchase
agreements.\14\ The Fund may also invest in a wide range of fixed
income instruments selected from, but not limited to, the following
sectors: U.S. Treasury securities, corporate bonds, emerging market
debt, and non-dollar denominated sovereign and corporate debt.\15\ The
Fund may invest up to 10% of its assets in MBS or in other asset-backed
securities.\16\ This limitation does not apply to securities issued or
guaranteed by federal agencies and/or U.S. government sponsored
instrumentalities, such as the GNMA, FHA, FNMA, and FHLMC.
---------------------------------------------------------------------------

    \13\ Commercial paper consists of short-term, promissory notes
issued by banks, corporations and other entities to finance short-
term credit needs. These securities generally are discounted but
sometimes may be interest bearing. As of year end 2010, $1.058
trillion commercial paper was outstanding, and, as of February 28,
2011, $1.123 trillion commercial paper was outstanding. The daily
average commercial paper market issuance in 2010 was $84.343
billion, with 65% having a maturity of 1-4 days, 8% having a
maturity of 5-9 days, 4% having a maturity of 10-20 days, 11% having
a maturity of 21-40 days, 4% having a maturity of 41-80 days, and 8%
having a maturity of 81 days or more. As of March 16, 2011, the
daily average commercial paper market issuance was $78.780 billion,
with 58% having a maturity of 1-4 days, 9% having a maturity of 5-9
days, 5% having a maturity of 10-20 days, 12% having a maturity of
21-40 days, 5% having a maturity of 41-80 days, and 11% having a
maturity of 81days or more. (Source: Federal Reserve).
    \14\ The Fund may invest a substantial portion of its assets in
short-term instruments such as repurchase agreements. Repurchase
agreements are fixed-income securities in the form of agreements
backed by collateral. These agreements, which may be viewed as a
type of secured lending by the Fund, typically involve the
acquisition by the Fund of securities from the selling institution
(such as a bank or a broker-dealer), coupled with the agreement that
the selling institution will repurchase the underlying securities at
a specified price and at a fixed time in the future (or on demand).
The underlying securities which serve as collateral for the
repurchase agreements entered into by the Fund may include U.S.
government securities, corporate obligations, and convertible
securities, and are marked-to-market daily in order to maintain full
collateralization (typically purchase price plus accrued interest).
    \15\ The Fund will invest only in securities that the Investment
Adviser deems to be sufficiently liquid. While corporate bonds and
emerging market debt generally must have $200 million or more par
amount outstanding and significant par value traded to be considered
as an eligible investment, at least 80% of issues of corporate bonds
or corporate debt held by the Fund must have $200 million or more
par amount outstanding.
    \16\ The Fund may invest in MBS or other asset-backed securities
issued or guaranteed by private issuers. The MBS in which the Fund
may invest may also include RMBS, CMOs and CMBS. The asset-backed
securities in which the Fund may invest include CDOs.
---------------------------------------------------------------------------

    According to the Registration Statement, the Fund may obtain
exposure to the securities in which it normally invests by engaging in
various investment techniques, including, but not limited to, forward
purchase agreements, mortgage dollar roll, and ``TBA'' mortgage
trading. The Fund also may invest directly in ETFs and other investment
companies that provide exposure to fixed income securities similar to
those securities in which the Fund may invest in directly.
    The Fund will normally invest at least 80% of its net assets in
fixed income securities.
Other Investments
    Each Fund may invest up to an aggregate amount of 15% of its net
assets in: (1) Illiquid securities; and (2) Rule 144A securities.
Illiquid securities include securities subject to contractual or other
restrictions on resale and other instruments that lack readily
available markets. With respect to investment in illiquid securities,
if changes in the values of a Fund's securities cause the Fund's
holdings of illiquid securities to exceed the 15% limitation (as if
liquid securities have become illiquid), the Fund will take such
actions as it deems appropriate and practicable to attempt to reduce
its holdings of illiquid securities.
    The Funds may invest in Rule 144A securities. Rule 144A securities
are securities which, while privately placed, are eligible for purchase
and resale pursuant to Rule 144A under the Securities Act. According to
the Registration Statement, this rule permits certain qualified
institutional buyers, such as the Funds, to trade in privately placed
securities even though such securities are not registered under the
Securities Act.
    The Funds' portfolio holdings will be disclosed on their Web site
(http://www.guggenheimfunds.com) daily after the close of trading on
the Exchange and prior to the opening of trading on the Exchange the
following day.
    The Funds are considered non-diversified under the 1940 Act and can
invest a greater portion of assets in securities of individual issuers
than a diversified fund. The Funds intend to maintain the level of
diversification necessary to qualify as a regulated investment company
(``RIC'') under Subchapter M of the Internal Revenue Code of 1986, as
amended.\17\
---------------------------------------------------------------------------

    \17\ 26 U.S.C. 851. As a RIC, each Fund will not be subject to
U.S. federal income tax on the portion of its taxable investment
income and capital gains that it distributes to its shareholders. To
qualify for treatment as a RIC, a company must annually distribute
at least 90% of its net investment company taxable income (which
includes dividends, interest, and net short-term capital gains) and
meet several other requirements relating to the nature of its income
and the diversification of its assets. If a Fund fails to qualify
for any taxable year as a RIC, all of its taxable income will be
subject to tax at regular corporate income tax rates without any
deduction for distributions to shareholders, and such distributions
generally will be taxable to shareholders as ordinary dividends to
the extent of a Fund's current and accumulated earnings and profits.
In addition, in order to requalify for taxation as a RIC, a Fund may
be required to recognize unrealized gains, pay substantial taxes and
interest, and make certain distributions.
---------------------------------------------------------------------------

    The Shares will conform to the initial and continued listing
criteria under NYSE Arca Equities Rule 8.600. The Exchange represents
that, for initial and/or continued listing, the Funds will be in
compliance with Rule 10A-3 under the Exchange Act,\18\ as provided by
NYSE Arca Equities Rule 5.3. A minimum of 100,000 Shares of each Fund
will be outstanding at the commencement of trading on the Exchange. The
Exchange will obtain a representation from the issuer of the Shares
that the net asset value (``NAV'') will be calculated daily, and the
NAV and the Disclosed Portfolio will be made available to all market
participants at the same time.
---------------------------------------------------------------------------

    \18\ 17 CFR 240.10A-3.
---------------------------------------------------------------------------

    The Funds will not invest in non-U.S. equity securities. In
addition, the Funds will not invest in options contracts, futures
contracts, or swap agreements.
Creations and Redemptions of Shares
    Investors may create or redeem in Creation Unit size of 100,000
Shares or aggregations thereof (``Creation Unit Aggregation'') through
an Authorized Participant, as described in the Registration Statement.
In order to purchase Creation Units of a Fund, an investor must
generally deposit a designated portfolio of securities (``Deposit
Securities'') and/or an amount in cash in lieu of some or all of the
Deposit Securities per each Creation Unit Aggregation constituting a
substantial replication, or representation, of the securities included
in the Fund's portfolio as selected by the Investment Adviser (``Fund
Securities'') and generally make a cash payment referred to as the
``Cash Component.'' The list of the names and the amounts of the
Deposit Securities will be made available by the Funds' custodian
through the facilities of the

National Securities Clearing Corporation (``NSCC'') immediately prior
to the opening of business each day of the NYSE Arca. The Cash
Component represents the difference between the NAV of a Creation Unit
and the market value of the Deposit Securities.
    Shares may be redeemed only in Creation Unit size at their NAV on a
day the NYSE Arca is open for business. The Funds' custodian will make
available immediately prior to the opening of business each day of the
NYSE Arca, through the facilities of NSCC, the list of the names and
the amounts of the Funds' portfolio securities that will be applicable
that day to redemption requests in proper form (``Fund Securities'').
Fund Securities received on redemption may not be identical to Deposit
Securities which are applicable to purchases of Creation Units.
Availability of Information
    The Funds' Web site, which will be publicly available prior to the
public offering of Shares, will include a form of the Prospectus for
the Funds that may be downloaded. The Funds' website will include
additional quantitative information updated on a daily basis,
including, for the Funds, (1) daily trading volume, the prior business
day's reported closing price, NAV and mid-point of the bid/ask spread
at the time of calculation of such NAV (``Bid/Ask Price''),\19\ and a
calculation of the premium and discount of the Bid/Ask Price against
the NAV, and (2) data in chart format displaying the frequency
distribution of discounts and premiums of the daily Bid/Ask Price
against the NAV, within appropriate ranges, for each of the four
previous calendar quarters. On each business day, before commencement
of trading in Shares in the Core Trading Session on the Exchange, the
Funds will disclose on their website the Disclosed Portfolio as defined
in NYSE Arca Equities Rule 8.600(c)(2) that will form the basis for
each Fund's calculation of NAV at the end of the business day.\20\
---------------------------------------------------------------------------

    \19\ The Bid/Ask Price of the Funds will be determined using the
highest bid and the lowest offer on the Exchange as of the time of
calculation of each Fund's NAV. The records relating to Bid/Ask
Prices will be retained by the Funds and its service providers.
    \20\ Under accounting procedures followed by the Funds, trades
made on the prior business day (``T'') will be booked and reflected
in NAV on the current business day (``T+1''). Accordingly, the Funds
will be able to disclose at the beginning of the business day the
portfolio that will form the basis for the NAV calculation at the
end of the business day.
---------------------------------------------------------------------------

    On a daily basis, the Investment Adviser will disclose for each
portfolio security or other financial instrument of the Funds the
following information: Ticker symbol (if applicable), name of security
or financial instrument, number of shares or dollar value of financial
instruments held in the portfolio, and percentage weighting of the
security or financial instrument in the portfolio. The website
information will be publicly available at no charge. In addition, price
information for the debt securities held by the Funds will be available
through major market data vendors.
    In addition, a basket composition file, which includes the security
names and share quantities required to be delivered in exchange for
Fund shares, together with estimates and actual cash components, will
be publicly disseminated daily prior to the opening of the New York
Stock Exchange (``NYSE'') via NSCC. The basket represents one Creation
Unit of each of the Funds. The NAV of each of the Funds will normally
be determined as of the close of the regular trading session on the
NYSE (ordinarily 4 p.m. Eastern Time) on each business day.
    Investors can also obtain the Trust's Statement of Additional
Information (``SAI''), the Funds' Shareholder Reports, and Form N-CSR,
and Form N-SAR, filed twice a year. The Trust's SAI and Shareholder
Reports are available free upon request from the Trust, and those
documents and the Form N-CSR and Form N-SAR may be viewed on-screen or
downloaded from the Commission's Web site at http://www.sec.gov.
Information regarding market price and trading volume of the Shares is
and will be continually available on a real-time basis throughout the
day on brokers' computer screens and other electronic services.
Information regarding the previous day's closing price and trading
volume information will be published daily in the financial section of
newspapers. Quotation and last-sale information for the Shares will be
available via the Consolidated Tape Association (``CTA'') high-speed
line. In addition, the Portfolio Indicative Value, as defined in NYSE
Arca Equities Rule 8.600(c)(3), will be disseminated by one or more
major market data vendors at least every 15 seconds during the Core
Trading Session. The dissemination of the Portfolio Indicative Value,
together with the Disclosed Portfolio, will allow investors to
determine the value of the underlying portfolio of each Fund on a daily
basis and to provide a close estimate of that value throughout the
trading day.
    Additional information regarding the Trust and the Shares,
including investment strategies, risks, creation and redemption
procedures, fees, portfolio holdings disclosure policies,
distributions, and taxes is included in the Registration Statement.
Trading Halts
    With respect to trading halts, the Exchange may consider all
relevant factors in exercising its discretion to halt or suspend
trading in the Shares of the Funds.\21\ Trading in Shares of the Funds
will be halted if the circuit breaker parameters in NYSE Arca Equities
Rule 7.12 have been reached. Trading also may be halted because of
market conditions or for reasons that, in the view of the Exchange,
make trading in the Shares inadvisable. These may include: (1) The
extent to which trading is not occurring in the securities and/or the
financial instruments comprising the Disclosed Portfolio of the Funds;
or (2) whether other unusual conditions or circumstances detrimental to
the maintenance of a fair and orderly market are present. Trading in
the Shares will be subject to NYSE Arca Equities Rule 8.600(d)(2)(D),
which sets forth circumstances under which Shares of the Funds may be
halted.
---------------------------------------------------------------------------

    \21\ See NYSE Arca Equities Rule 7.12, Commentary .04.
---------------------------------------------------------------------------

Trading Rules
    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. Shares will trade on
the NYSE Arca Marketplace from 4 a.m. to 8 p.m. Eastern Time in
accordance with NYSE Arca Equities Rule 7.34 (Opening, Core, and Late
Trading Sessions). The Exchange has appropriate rules to facilitate
transactions in the Shares during all trading sessions. As provided in
NYSE Arca Equities Rule 7.6, Commentary .03, the minimum price
variation (``MPV'') for quoting and entry of orders in equity
securities traded on the NYSE Arca Marketplace is $0.01, with the
exception of securities that are priced less than $1.00 for which the
MPV for order entry is $0.0001.
Surveillance
    The Exchange intends to utilize its existing surveillance
procedures applicable to derivative products (which include Managed
Fund Shares) to monitor trading in the Shares. The Exchange represents
that 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.
    The Exchange's current trading surveillance focuses on detecting

securities trading outside their normal patterns. When such situations
are detected, surveillance analysis follows and investigations are
opened, where appropriate, to review the behavior of all relevant
parties for all relevant trading violations.
    The Exchange may obtain information via the Intermarket
Surveillance Group (``ISG'') from other exchanges that are members of
ISG or with which the Exchange has entered into a surveillance sharing
agreement.\22\
---------------------------------------------------------------------------

    \22\ For a list of the current members of ISG, see http://www.isgportal.org. The Exchange notes that not all components of the
Disclosed Portfolio for the Funds may trade on markets that are
members of ISG or with which the Exchange has in place a
comprehensive surveillance sharing agreement.
---------------------------------------------------------------------------

    In addition, the Exchange also has a general policy prohibiting the
distribution of material, non-public information by its employees.
Information Bulletin
    Prior to the commencement of trading, the Exchange will inform its
Equity Trading Permit (``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
in Creation Unit Aggregations (and that Shares are not individually
redeemable); (2) NYSE Arca Equities Rule 9.2(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 risks
involved in trading the Shares during the Opening and Late Trading
Sessions when an updated Portfolio Indicative Value will not be
calculated or publicly disseminated; (4) how information regarding the
Portfolio Indicative Value is disseminated; (5) the requirement that
ETP Holders deliver a prospectus to investors purchasing newly issued
Shares prior to or concurrently with the confirmation of a transaction;
and (6) trading information.
    In addition, the Bulletin will reference that the Funds are subject
to various fees and expenses described in the Registration Statement.
The Bulletin will discuss any exemptive, no-action, and interpretive
relief granted by the Commission from any rules under the Exchange Act.
The Bulletin will also disclose that the NAV for the Shares will be
calculated after 4:00 p.m. Eastern Time each trading day.
2. Statutory Basis
    The basis under the Exchange Act for this proposed rule change is
the requirement under Section 6(b)(5) \23\ that an exchange have rules
that are designed to prevent fraudulent and manipulative acts and
practices, to promote just and equitable principles of trade, to remove
impediments to, and perfect the mechanism of a free and open market
and, in general, to protect investors and the public interest. The
Exchange believes that the proposed rule change will facilitate the
listing and trading of an additional type of actively-managed exchange-
traded product that will enhance competition among market participants,
to the benefit of investors and the marketplace. The Funds primarily
will invest 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 the Investment Adviser to be
of comparable quality. At least 80% of issues of corporate bonds or
corporate debt held by each Fund must have $200 million or more par
amount outstanding. The Funds will not invest in non-U.S. equity
securities.
---------------------------------------------------------------------------

    \23\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    In addition, the Funds will not invest in options contracts,
futures contracts, or swap agreements. The Funds' portfolio holdings
will be disclosed on their website daily after the close of trading on
the Exchange and prior to the opening of trading on the Exchange the
following day. The Portfolio Indicative Value, as defined in NYSE Arca
Equities Rule 8.600(c)(3), will be disseminated by one or more major
market data vendors at least every 15 seconds during the Core Trading
Session. Information regarding market price and trading volume of the
Shares is and will be continually available on a real-time basis
throughout the day on brokers' computer screens and other electronic
services, and quotation and last-sale information will be available via
the CTA high-speed line. Trading in Shares of the Funds will be halted
if the circuit breaker parameters in NYSE Arca Equities Rule 7.12 have
been reached or because of market conditions or for reasons that, in
the view of the Exchange, make trading in the Shares inadvisable.
Trading in the Shares will be subject to NYSE Arca Equities Rule
8.600(d)(2)(D), which sets forth circumstances under which Shares of
the Funds may be halted. The Exchange will obtain a representation from
the issuer of the Shares that the NAV will be calculated daily, and the
NAV and the Disclosed Portfolio will be made available to all market
participants at the same time.
    In addition, the Exchange has in place surveillance procedures that
are adequate to properly monitor trading in the Shares. Prior to the
commencement of trading, the Exchange will inform its ETP Holders in an
Information Bulletin of the special characteristics and risks
associated with trading the Shares.

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.

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

    Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission shall:
    (A) By order approve or disapprove such proposed rule change, or
    (B) Institute proceedings to determine whether the proposed rule
change should be 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 (http://www.sec.gov/rules/sro.shtml); or
     Send an e-mail to<EMAIL_ADDRESS>Please include
File Number SR-NYSEArca-2011-11 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.

All submissions should refer to File Number SR-NYSEArca-2011-11. This
file number should be included on the subject line if e-mail 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 (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 a.m. and 3 p.m. Copies of the filing will also be
available for inspection and copying at the principal office of the
Exchange. All comments received will be posted without change; the
Commission does not edit personal identifying information from
submissions. You should submit only information that you wish to make
available publicly. All submissions should refer to File No. SR-
NYSEArca-2011-11 and should be submitted on or before May 3, 2011.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\24\
---------------------------------------------------------------------------

    \24\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-8725 Filed 4-11-11; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 79, Number 204 (Wednesday, October 22, 2014)]
[Rules and Regulations]
[Pages 63044-63045]
[FR Doc No: 2014-24782]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R07-OAR-2014-0500; FRL-9918-11-Region 7]

Approval and Promulgation of Implementation Plans; State of
Kansas; Infrastructure SIP Requirements for the 2010 Nitrogen Dioxide
National Ambient Air Quality Standard

AGENCY: Environmental Protection Agency.

ACTION: Final rule.

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SUMMARY: The Environmental Protection Agency (EPA) is taking final
action to approve elements of a State Implementation Plan (SIP)
submission from the State of Kansas addressing the applicable
requirements of Clean Air Act (CAA) section 110 for the 2010 National
Ambient Air Quality Standards (NAAQS) for Nitrogen Dioxide
(NO2), which requires that each state adopt and submit a SIP
to support implementation, maintenance, and enforcement of each new or
revised NAAQS promulgated by EPA. These SIPs are commonly referred to
as ``infrastructure'' SIPs. The infrastructure requirements are
designed to ensure that the structural components of each state's air
quality management program are adequate to meet the state's
responsibilities under the CAA.

DATES: This final rule is effective November 21, 2014.

ADDRESSES: EPA has established a docket for this action under Docket ID
No. EPA-R07-OAR-2014-0500. All documents in the electronic docket are
listed in the http://www.regulations.gov index. Although listed in the
index, some information is not publicly available, i.e., CBI or other
information whose disclosure is restricted by statute. Certain other
material, such as copyrighted material, will be publicly available only
in hard copy. Publicly available docket materials are available either
electronically at http://www.regulations.gov or in hard copy at U.S.
Environmental Protection Agency, Region 7, 11201 Renner Boulevard,
Lenexa, Kansas 66219 from 8:00 a.m. to 4:30 p.m., Monday through
Friday, excluding legal holidays. The interested persons wanting to
examine these documents should make an appointment with the office at
least 24 hours in advance.

FOR FURTHER INFORMATION CONTACT: Ms. Lachala Kemp, Air Planning and
Development Branch, U.S. Environmental Protection Agency, Region 7,
11201 Renner Boulevard, Lenexa, KS 66219; telephone number: (913) 551-
7214; fax number:<PHONE_NUMBER>; email address<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: Throughout this document, the terms ``we,''
``us,'' or ``our'' refer to EPA. This section provides additional
information by addressing the following:

I. Background
II. Summary of SIP Revision
III. Final Action
IV. Statutory and Executive Order Review

I. Background

    On August 28, 2014, (79 FR 51277), EPA published a notice of
proposed rulemaking (NPR) for the State of Kansas. The NPR proposed
approval of Kansas' submission that provides the basic elements
specified in section 110(a)(2) of the CAA, or portions thereof,
necessary to implement, maintain, and enforce the 2010 NO2
NAAQS.

II. Summary of SIP Revision

    On March 19, 2013, and May 9, 2013, EPA received SIP submissions
from the state of Kansas that address the infrastructure elements
specified in section 110(a)(2) for the 2010 NO2 NAAQS. The
submissions addressed the following infrastructure elements of section
110(a)(2): (A), (B), (C), (D), (E), (F), (G), (H), (J), (K), (L), and
(M). Specific requirements of section 110(a)(2) of the CAA and the
rationale for EPA's proposed action to approve the SIP submission are
explained in the NPR and will not be restated here. No public comments
were received on the NPR.

III. Final Action

    EPA is approving Kansas' submissions which provides the basic
program elements specified in section 110(a)(2)(A), (B), (C), (D), (E),
(F), (G), (H), (J), (K), (L), and (M) of the CAA, or portions thereof,
necessary to implement, maintain, and enforce the 2010 NO2
NAAQS, as a revision to the Kansas SIP. This action is being taken
under section 110 of the CAA. As discussed in each applicable section
of the NPR, EPA is not acting on section 110(a)(2)(I)--Nonattainment
Area Plan or Plan Revisions Under Part D, and on the visibility
protection portion of section 110(a)(2)(J).

IV. Statutory and Executive Order Review

    Under the CAA the Administrator is required to approve a SIP
submission that complies with the provisions of the Act and applicable
Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in
reviewing SIP submissions, EPA's role is to approve state choices,
provided that they meet the criteria of the CAA. Accordingly, this
action merely approves state law as meeting Federal requirements and
does not impose additional requirements beyond those imposed by state
law. For that reason, this action:
     Is not a ``significant regulatory action'' under the terms
of Executive Order 12866 (58 FR 51735, October 4, 1993) and is
therefore not subject to review under Executive Orders 12866 and 13563
(76 FR 3821, January 21, 2011).
     does not impose an information collection burden under the
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
     is certified as not having a significant economic impact
on a substantial number of small entities under the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.);
     does not contain any unfunded mandate or significantly or
uniquely affect small governments, as described in the Unfunded
Mandates Reform Act of 1995 (Pub. L. 104-4);
     does not have Federalism implications as specified in
Executive Order 13132 (64 FR 43255, August 10, 1999);
     is not an economically significant regulatory action based
on health or safety risks subject to Executive Order 13045 (62 FR
19885, April 23, 1997);
     is not a significant regulatory action subject to
Executive Order 13211 (66 FR 28355, May 22, 2001);
     is not subject to requirements of section 12(d) of the
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272
note) because application of those requirements would be inconsistent
with the CAA; and
     does not provide EPA with the discretionary authority to
address, as appropriate, disproportionate human health or environmental
effects, using practicable and legally permissible methods, under
Executive Order 12898 (59 FR 7629, February 16, 1994).
    In addition, this rule does not have tribal implications as
specified by Executive Order 13175 (65 FR 67249,

November 9, 2000), because the SIP is not approved to apply in Indian
country located in the state, and EPA notes that it will not impose
substantial direct costs on tribal governments or preempt tribal law.
    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the
Small Business Regulatory Enforcement Fairness Act of 1996, generally
provides that before a rule may take effect, the agency promulgating
the rule must submit a rule report, which includes a copy of the rule,
to each House of the Congress and to the Comptroller General of the
United States. EPA will submit a report containing this action and
other required information to the U.S. Senate, the U.S. House of
Representatives, and the Comptroller General of the United States prior
to publication of the rule in the Federal Register. A major rule cannot
take effect until 60 days after it is published in the Federal
Register. This action is not a ``major rule'' as defined by 5 U.S.C.
804(2).
    Under section 307(b)(1) of the CAA, petitions for judicial review
of this action must be filed in the United States Court of Appeals for
the appropriate circuit by December 22, 2014. Filing a petition for
reconsideration by the Administrator of this final rule does not affect
the finality of this action for the purposes of judicial review nor
does it extend the time within which a petition for judicial review may
be filed, and shall not postpone the effectiveness of such rule or
action. This action may not be challenged later in proceedings to
enforce its requirements. (See section 307(b)(2)).

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Carbon monoxide,
Incorporation by reference, Intergovernmental relations, Nitrogen
Dioxide, and Reporting and recordkeeping requirements.

    Dated: September 30, 2014.
Rebecca Weber,
Acting Regional Administrator, Region 7.

    For the reasons stated in the preamble, the Environmental
Protection Agency amends 40 CFR part 52 as set forth below:

PART 52--APPROVAL AND PROMULGATION OF IMPLEMENTATION PLANS

0
1. The authority citation for part 52 continues to read as follows:

    Authority: 42 U.S.C. 7401 et seq.

Subpart R--Kansas

0
2. In Sec.  52.870(e) the table is amended by adding new entry (39) in
numerical order at the end of the table to read as follows:

Sec.  52.870  Identification of plan.

* * * * *
    (e)* * *

                                  EPA-Approved Kansas Nonregulatory Provisions
----------------------------------------------------------------------------------------------------------------
                                       Applicable         State
    Name of nonregulatory SIP      geographic area or   submittal    EPA approval date         Explanation
            provision              nonattainment area      date
----------------------------------------------------------------------------------------------------------------

                                                  * * * * * * *
(39) Section 110(a)(2)            Statewide..........    3/19/2013  10/22/2014 and       This action addresses
 Infrastructure Requirements for                                     [Insert Federal      the following CAA
 the 2010 NO2 NAAQS.                                                 Register citation].  elements: 110
                                                                                (a)(2)(A), (B), (C),
                                                                                (D), (E), (F), (G),
                                                                                (H), (J), (K), (L),
                                                                                and (M).
----------------------------------------------------------------------------------------------------------------

[FR Doc. 2014-24782 Filed 10-21-14; 8:45 am]
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