[Federal Register Volume 79, Number 118 (Thursday, June 19, 2014)]
[Notices]
[Page 35205]
[FR Doc No: 2014-14317]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-72384; File No. SR-NASDAQ-2014-038]

Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Designation of a Longer Period for Commission Action on
Proposed Rule Change, as Modified by Amendment Nos. 1 and 2 Thereto,
Relating to the Listing and Trading of the Shares of the Reality Shares
NASDAQ-100 DIVS Index ETF of the Reality Shares ETF Trust Under Rule
5705

June 13, 2014.
    On April 10, 2014, The NASDAQ Stock Market LLC (``Exchange'') filed
with the Securities and Exchange Commission (``Commission''), pursuant
to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'')
\1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to list and
trade shares of the Reality Shares NASDAQ-100 DIVS Index ETF (``Fund'')
(formerly, Reality Shares NASDAQ-100 Isolated Dividend Growth Index
ETF) under Rule 5705. The proposed rule change was published for
comment in the Federal Register on April 30, 2014.\3\ On May 13, 2014,
the Exchange filed Amendment No. 1 to the proposed rule change, which
amended and replaced the proposed rule change in its entirety.\4\ On
June 4, 2014, the Exchange filed Amendment No. 2 to the proposed rule
change.\5\ The Commission received no comment letters on the proposed
rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 72014 (Apr. 24,
2014), 79 FR 24465.
    \4\ In Amendment No. 1, the Exchange confirms the three trading
sessions on the Exchange, clarifies the valuation of investments for
purposes of calculating net asset value, clarifies what information
would be available on the Fund's Web site, and provides additional
information relating to surveillance with respect to certain assets
to be held by the Fund.
    \5\ In Amendment No. 2, the Exchange amends the proposal to
reflect a name change to the Fund and the underlying index.
Specifically, the Exchange replaces each reference to ``Reality
Shares NASDAQ-100 Isolated Dividend Growth Index ETF'' in the
proposal with ``Reality Shares NASDAQ-100 DIVS Index ETF,'' and
replaces each reference to ``Reality Shares NASDAQ-100 Isolated
Dividend Growth Index'' in the proposal with ``Reality Shares
NASDAQ-100 DIVS Index.''
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    The proposed rule change would permit the listing and trading of
shares of the Fund, which would seek long-term capital appreciation by
tracking the performance of the Reality Shares NASDAQ-100 DIVS Index
(``Index'') (formerly, Reality Shares NASDAQ-100 Isolated Dividend
Growth Index). At least 80% of the Fund's total assets would be
invested in the component securities of the Index, which would be
calculated using a proprietary, rules-based methodology designed to
track market expectations for dividend growth conveyed in real-time
using the mid-point of the bid-ask spread on U.S. exchange-listed
NASDAQ-100 Index options and U.S. exchange-listed options on exchange
traded funds designed to track the NASDAQ-100 Index. Under the
proposal, the Fund would buy (i.e., hold a ``long'' position in) and
sell (i.e., hold a ``short'' position in) put and call options. The
strategy of taking both a long position in a security through its ex-
dividend date (the last date an investor can own the security and
receive dividends paid on the security) and a corresponding short
position in the same security immediately thereafter is designed to
allow the Fund to isolate its exposure to the growth of the level of
dividends expected to be paid on such security while minimizing its
exposure to changes in the trading price of such security.
    Section 19(b)(2) of the Act \6\ provides that, within 45 days of
the publication of notice of the filing of a proposed rule change, or
within such longer period up to 90 days as the Commission may designate
if it finds such longer period to be appropriate and publishes its
reasons for so finding or as to which the self-regulatory organization
consents, the Commission shall either approve the proposed rule change,
disapprove the proposed rule change, or institute proceedings to
determine whether the proposed rule change should be disapproved. The
Commission is extending this 45-day time period.
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    \6\ 15 U.S.C. 78s(b)(2).
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    The Commission finds that it is appropriate to designate a longer
period within which to take action on the proposed rule change so that
it has sufficient time to consider the proposed rule change and the
unique nature of the investment strategy of the proposed Fund.
    Accordingly, the Commission, pursuant to Section 19(b)(2) of the
Act,\7\ designates July 29, 2014, as the date by which the Commission
should either approve or disapprove or institute proceedings to
determine whether to disapprove the proposed rule change (File Number
SR-NASDAQ-2014-038).
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    \7\ Id.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(31).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-14317 Filed 6-18-14; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 78, Number 204 (Tuesday, October 22, 2013)]
[Notices]
[Pages 62774-62775]
[FR Doc No: 2013-24640]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-70630; File No. SR-Phlx-2013-96]

Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend the
Table of Contents of the Pricing Schedule

October 8, 2013.

    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 September 27, 2013, NASDAQ OMX PHLX LLC (``Phlx'' or ``Exchange'')
filed with the Securities and Exchange Commission (``SEC'' or
``Commission'') the proposed rule change as described in Items I, II,
and III, 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 the
Substance of the Proposed Rule Change

    The Exchange proposes to amend the Table of Contents to its Pricing
Schedule to refer to FLEX \3\ transaction fees which were inadvertently
not added to the Table of Contents at the time the fees were adopted.
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    \3\ The term ``FLEX option'' means a FLEX option contract that
is traded subject to this Rule. Although FLEX options are generally
subject to the rules in this section, to the extent that the
provisions of this Rule are inconsistent with other applicable
Exchange rules, this Rule takes precedence with respect to FLEX
options. See Exchange Rule 1079.
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    The text of the proposed rule change is available on the Exchange's
Web site at http://nasdaqomxphlx.cchwallstreet.com/, at the principal
office of the Exchange, and at the Commission's Public Reference Room.

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

    In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange 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
    The purpose of the proposed rule change is to amend the Table of
Contents to include a reference to FLEX transaction fees within the
Pricing Schedule. The Exchange adopted new FLEX transaction fee pricing
in Section IV, entitled ``Other Transaction Fees,'' Part B of the
Pricing Schedule in a previous rule change and inadvertently did not
amend the Table of Contents to reflect the addition of that pricing to
Section IV.\4\ The Exchange proposes to amend the Table of Contents to
add the words ``FLEX Transaction Fees'' and also reletter Section IV,
Part B, entitled ``Cancellation Fees,'' and Part C, entitled ``Options
Regulatory Fee,'' as Parts C and D, respectively.
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    \4\ See Securities Exchange Release Act No. 69548 (May 9, 2013),
78 FR 28681 (May 15, 2013) (SR-Phlx-2013-49).
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    The Table of Contents allows members to readily locate pricing
within the Pricing Schedule. The Pricing Schedule is located on the
Exchange's Web page.\5\ The Table of Contents contains hyperlinks which
allow users to readily access the various portions of the Pricing
Schedule with ease. By adding the words ``FLEX Transaction Fees'' to
the Table of Contents, users will be able to click on this topic in the
Table of Contents and be taken to that portion of the Pricing Schedule.
The Exchange is not proposing any substantive amendments, but rather
proposes to merely amend the contents of the Table of Contents.
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    \5\ See http://nasdaqomxphlx.cchwallstreet.com.
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section
6(b) of the Act \6\ in general, and furthers the objectives of Section
6(b)(5) of the Act \7\ in particular, in that it is designed 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,
by providing market participants an easy format to readily locate FLEX
transaction fees, which may be applicable to them. The Exchange
believes that correcting the Table of Contents provides greater clarity
to the

Pricing Schedule as well as any easy means to access the FLEX
transaction fees.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(5).
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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 not necessary or appropriate in
furtherance of the purposes of the Act as the amendment is non-
substantive and merely serves to add a reference to the Table of
Contents which was inadvertently not amended in a prior rule change.

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

    No written comments were either solicited or received.

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

    Pursuant to Section 19(b)(3)(A) of the Act \8\ and Rule 19b-4(f)(3)
\9\ thereunder, the Exchange has designated this proposal as one that
is concerned solely with the administration of the self-regulatory
organization, and therefore has become effective.
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    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(3).
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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 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-Phlx-2013-96 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-Phlx-2013-96. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (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 offices of the Exchange. All comments
received will be posted without change; the Commission does not edit
personal identifying information from submissions. You should submit
only information that you wish to make available publicly. All
submissions should refer to File Number SR-Phlx-2013-96, and should be
submitted on or before November 12, 2013.
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    \10\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-24640 Filed 10-21-13; 8:45 am]
BILLING CODE 8011-01-P