(d) A sponsor may voluntarily withdraw an orphan-drug designation
request or an orphan-drug designation at any time after the request is
submitted or granted, respectively, by submitting a written request for
withdrawal to FDA. FDA will acknowledge such withdrawal in a letter to
the sponsor. Any benefits attendant to designation (such as orphan-
exclusive approval) will cease once designation is voluntarily
withdrawn, from the date of FDA's acknowledgement letter. If a sponsor
voluntarily withdraws designation, FDA will publicize such withdrawal
in accordance with Sec.  316.28.

0
10. Section 316.25 is amended by revising paragraphs (a)(1)(ii),
(a)(3), and (b) to read as follows:

Sec.  316.25  Refusal to grant orphan-drug designation.

    (a) * * *
    (1) * * *
    (ii) Where the drug is intended for prevention, diagnosis, or
treatment of a disease or condition affecting 200,000 or more people in
the United States, the sponsor has failed to demonstrate that there is
no reasonable expectation that development and production costs will be
recovered from sales of the drug for such disease or condition in the
United States. A sponsor's failure to comply with Sec.  316.21 shall
constitute a failure to make the demonstration required in this
paragraph.
* * * * *
    (3) The drug is otherwise the same drug as an already approved drug
for the same rare disease or condition and the sponsor has not
submitted a medically plausible hypothesis for the possible clinical
superiority of the subsequent drug.
    (b) FDA may refuse to grant a request for orphan-drug designation
if the request for designation contains an untrue statement of material
fact or omits material information or if the request is otherwise
ineligible under this part.

0
11. Section 316.26 is revised to read as follows:

Sec.  316.26  Amendment to orphan-drug designation.

    (a) At any time prior to approval of a marketing application for a
designated orphan drug, the sponsor holding designation may apply for
an amendment to the designated use if the proposed change is due to new
and unexpected findings in research on the drug, information arising
from FDA recommendations, or unforeseen developments in treatment or
diagnosis of the disease or condition.
    (b) FDA will grant the amendment if it finds that the initial
designation request was made in good faith and that the amendment is
intended to conform the orphan-drug designation to the results of
unanticipated research findings, to unforeseen developments in the
treatment or diagnosis of the disease or condition, or to changes based
on FDA recommendations, and that, as of the date of the submission of
the amendment request, the amendment would not result in exceeding the
prevalence or cost recovery thresholds in Sec.  316.21(a)(1) or (a)(2)
upon which the drug was originally designated.

0
12. Section 316.28 is revised to read as follows:

Sec.  316.28  Publication of orphan-drug designations.

    Each month FDA will update a publicly available cumulative posting
of all drugs designated as orphan drugs. These postings will contain
the following information:
    (a) The name and address of the sponsor;
    (b) The generic name and trade name, if any, or, if neither is
available, the chemical name or a meaningful descriptive name of the
drug;
    (c) The date of the granting of orphan-drug designation;
    (d) The designated use in the rare disease or condition; and
    (e) If the drug loses designation after August 12, 2013, the date
of it no longer having designation.
0
13. Section 316.29 is amended by adding a new paragraph (d) to read as
follows:

Sec.  316.29  Revocation of orphan-drug designation.

* * * * *
    (d) If FDA revokes orphan-drug designation, FDA will publicize that
the drug is no longer designated in accordance with Sec.  316.28(e).

0
14. Section 316.31 is amended by revising the introductory text of
paragraph (a), by redesignating paragraph (b) as paragraph (c), by
revising newly redesignated paragraph (c), and by adding new paragraph
(b) to read as follows:

Sec.  316.31  Scope of orphan-drug exclusive approval.

    (a) FDA may approve a sponsor's marketing application for a
designated orphan drug for use in the rare disease or condition for
which the drug was designated, or for select indication(s) or use(s)
within the rare disease or condition for which the drug was designated.
Unless FDA previously approved the same drug for the same use or
indication, FDA will not approve another sponsor's marketing
application for the same drug for the same use or indication before the
expiration of 7 years from the date of such approval as stated in the
approval letter from FDA, except that such a marketing application can
be approved sooner if, and at such time as, any of the following
occurs:
* * * * *
    (b) Orphan-drug exclusive approval protects only the approved
indication or use of a designated drug. If such approval is limited to
only particular indication(s) or uses(s) within the rare disease or
condition for which the drug was designated, FDA may later approve the
drug for additional indication(s) or uses(s) within the rare disease or
condition not protected by the exclusive approval. If the sponsor who
obtains approval for these new indication(s) or uses(s) has orphan-drug
designation for the drug for the rare disease or condition, FDA will
recognize a new orphan-drug exclusive approval for these new (not
previously approved) indication(s) or use(s) from the date of approval
of the drug for such new indication(s) or use(s).
    (c) If a sponsor's marketing application for a drug product is
determined not to be approvable because approval is barred under
section 527 of the Federal Food, Drug, and Cosmetic Act until the
expiration of

the period of exclusive marketing of another drug, FDA will so notify
the sponsor in writing.

0
15. Section 316.34 is revised to read as follows:

Sec.  316.34  FDA recognition of exclusive approval.

    (a) FDA will send the sponsor (or, the permanent-resident agent, if
applicable) timely written notice recognizing exclusive approval once
the marketing application for a designated orphan-drug product has been
approved, if the same drug has not already been approved for the same
use or indication. The written notice will inform the sponsor of the
requirements for maintaining orphan-drug exclusive approval for the
full 7-year term of exclusive approval.
    (b) When a marketing application is approved under section 505 of
the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 355) for a
designated orphan drug that qualifies for exclusive approval, FDA will
publish in its publication entitled ``Approved Drug Products With
Therapeutic Equivalence Evaluations'' information identifying the
sponsor, the drug, and the date of termination of the orphan-drug
exclusive approval. A subscription to this publication and its monthly
cumulative supplements is available from the Superintendent of
Documents, Government Printing Office, Washington, DC 20402-9325, and
is also available online at http://www.accessdata.fda.gov/scripts/cder/ob/default.cfm.
    (c) If a drug is otherwise the same drug as a previously approved
drug for the same use or indication, FDA will not recognize orphan-drug
exclusive approval if the sponsor fails to demonstrate upon approval
that the drug is clinically superior to the previously approved drug.

0
16. Section 316.50 is revised to read as follows:

Sec.  316.50  Guidance documents.

    FDA's Office of Orphan Products Development will maintain and make
publicly available a list of guidance documents that apply to the
regulations in this part. The list is maintained on the Internet and is
published annually in the Federal Register. A request for a copy of the
list should be directed to the Office of Orphan Products Development,
Food and Drug Administration, Bldg. 32, rm. 5271, 10903 New Hampshire
Ave., Silver Spring, MD 20993.

    Dated: June 7, 2013.
Leslie Kux,
Assistant Commissioner for Policy.
[FR Doc. 2013-13930 Filed 6-11-13; 8:45 am]
BILLING CODE 4160-01-P


[Federal Register: March 16, 2006 (Volume 71, Number 51)]
[Notices]
[Page 13640]
[DOCID:fr16mr06-86]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

Roundtable Series on Giving Investors and Analysts Better
Financial Data Via Internet

    Washington, DC, March 9, 2006--The Securities and Exchange
Commission announced today a series of roundtables to be held
throughout 2006 at its headquarters in Washington, DC, focused on
speeding the implementation of new Internet tools that will help
provide investors and analysts with better financial information about
companies and funds.
    The roundtables will review the experiences from the first year of
a pilot program to use so-called interactive data for company filings
with the SEC. Interactive data permits Internet users to search for and
use individual items of information from financial reports, such as net
income, executive compensation, or mutual fund expenses. Today, even
computer-based financial information is generally presented in the form
of entire pages of data that can't easily be separated. Approximately a
dozen companies participated in the voluntary program in its initial
year.
    The roundtables will also use the lessons learned from the pilot
program in order to develop new ways to get analysts and investors
significantly better information. Topics will include what investors
and analysts are looking for in the new world of interactive data; how
to accelerate the use of new software that permits the dissemination of
interactive financial data; and how to best design the SEC's
requirements for company disclosures to take maximum advantage of the
potential of interactive data.
    Representatives from investors, issuers, auditors, analysts,
technology professionals, regulators, and others will be invited to the
roundtable discussions.
    The first roundtable in the series will be held on Monday, June 12,
from 10 a.m.-noon, and will focus on how best to serve the needs of
analysts and investors with interactive data. Subsequent roundtable
discussions will be held later in the summer and fall. ``It is now
within our reach to get dramatically more useful information in the
hands of investors,'' said SEC Chairman Christopher Cox. ``We look
forward to these discussions on implementing interactive data
initiatives that can benefit investors as quickly as possible, and we
welcome the opportunity to learn from investors and other users of
financial information how the SEC can improve our own disclosure
program.''
    The Commission also announced that it is seeking written feedback
from investors, registrants, auditors and others on their experiences
with interactive data and XBRL The Commission welcomes feedback on any
aspect of the use of interactive data. The information that is
submitted will become part of the public record of the interactive data
roundtables.
    Members of the public are encouraged to provide feedback throughout
the year as the roundtable topics and dates are announced. Submissions
to the Commission may be provided by any of the following methods:

Electronic Submissions

     Use the Commission's Internet submission form at http://www.sec.gov/news/press.shtml.
; or     Send an e-mail to<EMAIL_ADDRESS>Please include

File Number 4-515 on the subject line.

Paper Submissions

     Send paper submissions in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.

All submissions should refer to File Number 4-515. This file number
should be included on the subject line if e-mail is used. To help
process and review your submissions more efficiently, please use only
one method. The Commission will post all submissions on the
Commission's Internet Web site at (http://www.sec.gov/news/press/4-515.shtml
). Please note that all submissions received will be posted

without change; the SEC does not edit personal identifying information
from submissions. You should submit only information that you wish to
make available publicly.

Nancy M. Morris,
Secretary.
 [FR Doc. E6-3779 Filed 3-15-06; 8:45 am]

BILLING CODE 8010-01-P


[Federal Register: June 14, 2007 (Volume 72, Number 114)]
[Notices]
[Page 32937-32938]
[DOCID:fr14jn07-104]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55877; File No. SR-Phlx-2006-87]

Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.;
Order Approving Proposed Rule Change, as Modified by Amendment Nos. 1
and 2, Relating to Options Exchange Officials

June 7, 2007.

I. Introduction

    On December 14, 2006, the Philadelphia Stock Exchange, Inc.
(``Phlx'' or ``Exchange'') filed with the Securities and Exchange
Commission (``SEC'' or ``Commission'') a proposed rule change pursuant
to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'')
\1\ and Rule 19b-4 thereunder,\2\ to eliminate floor officials from the
Exchange and establish a new category of Exchange staff called Options
Exchange Officials (``OEOs''). The Phlx filed Amendment No. 1 to the
proposed rule change on February 23, 2007, and filed Amendment No. 2 to
the proposed rule change on March 15, 2007. The proposed rule change,
as amended, was published for comment in the Federal Register on April
6, 2007.\3\ The Commission received no comments on the proposal. The
Commission is approving the proposed rule change, as modified by
Amendment Nos. 1 and 2.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 55552 (March 29,
2007), 72 FR 17212.
---------------------------------------------------------------------------

II. Description of the Proposed Rule Change

    The Exchange proposes to create the new category of Exchange staff,
OEOs, who will replace the Exchange's floor officials, and assume all
authority and responsibility currently handled by the Exchange's floor
officials. As a result, floor officials would cease to exist on the
Exchange. Further, the Exchange's decision making process would be
streamlined in that some rulings that currently require the concurrence
of two floor officials, or two floor officials with the concurrence of
a Market Surveillance officer, will now be made by one OEO. The role of
the Exchange's Referee, however, will remain unchanged. The Exchange
will make the proposed rule changes operative shortly after Commission
approval of the proposal, and will notify members at least three
business days in advance of such operative date.\4\
---------------------------------------------------------------------------

    \4\ Telephone conversation on May 7, 2007 between Richard
Rudolph, Vice President and Counsel, Phlx and Jennifer Dodd, Special
Counsel, Division of Market Regulation, Commission.
---------------------------------------------------------------------------

Current Floor Official Process

    Pursuant to Exchange By-Law Article VIII, floor officials are
members who are designated by the Chairpersons of the Exchange's
Options Committee and Foreign Currency Options Committee and are
authorized to administer the provisions of Exchange By-Laws and Rules
of the Exchange pertaining to the respective trading floors and the
immediately adjacent premises of the Exchange. Among other things,
floor officials may impose penalties, as applicable, for breaches of
rules or regulations relating to order, decorum, health, safety and
welfare on the respective trading floors. Additionally, floor officials
may, in accordance with Exchange rules, rule on trading

disputes, nullify or adjust the terms of executed trades, and grant
relief to members and member organizations from certain Exchange
requirements. The Exchange's Referee \5\ currently may review floor
official rulings concerning the nullification or adjustment of
transactions in accordance with Exchange Rule 124(d), and may act in
the capacity of a floor official respecting initial rulings concerning
requests for relief from certain Exchange rules.\6\ The granting of
initial requests for relief, whether made by a floor official, or the
Referee acting in the capacity of a floor official, are final rulings
and may not be appealed.
---------------------------------------------------------------------------

    \5\ The Exchange's ``Referee'' is an employee of the Exchange,
or an independent contractor, who is approved by the Board of
Governors on the recommendation of the Audit Committee. See Phlx
Rule 124, Commentary .02.
    \6\ See id.
---------------------------------------------------------------------------

OEOs

    An OEO will be an Exchange staff member or contract employee
designated as an OEO by the Exchange's Chief Regulatory Officer
(``CRO''). A list of OEOs will be displayed on the Exchange's Web site,
and will be maintained and updated by the Exchange's Referee.\7\ The
jurisdiction of the OEOs will be limited to Phlx's options trading
floor and systems, and OEOs will be located on the Exchange's options
trading floor and report to the CRO. The Exchange represents that OEOs
will be members of the Exchange's regulatory staff, including the on-
floor surveillance staff, who have sufficient expertise to act in the
capacity of an OEO as determined by the CRO.
---------------------------------------------------------------------------

    \7\ See proposed Phlx Rule 1(pp).
---------------------------------------------------------------------------

Duties of OEOs

    Under the proposal, OEOs will be authorized to fulfill the duties
currently performed by floor officials. In some instances, one OEO will
be authorized to make decisions that currently require the concurrence
of two floor officials, or two floor officials with the concurrence of
a Market Surveillance officer. Among other things, OEOs will be
authorized to rule on trading disputes occurring on the options trading
floor, which could result in the adjustment or nullification of
executed transactions, and to nullify or adjust executed transactions
in the case of an obvious error.
    OEOs also will be authorized to rule on initial requests for relief
from the requirements of certain Exchange rules, such as rules relating
to bid/ask differentials, disengagement of automatic execution systems,
the determination that quotes in options on the Exchange or another
market or markets are subject to relief from the firm quote
requirement, and trading halts, openings, and reopenings. An OEO will
have the authority to direct the opening of a series at a price that
falls outside of the Exchange's established parameters where necessary
to ensure a fair and orderly market, and to rule on trading halts,
rotations, and reopenings following a trading halt.
    Further, pursuant to the proposal, an OEO will be authorized to
impose on Exchange members, member organizations and participants,
participant organizations, and their associated persons, fines for
breaches of regulations that relate to administration of order,
decorum, health, safety and welfare on the Exchange. An OEO also may
exclude such persons and organizations from the trading floor for
breaches of such regulations that occurred on the trading floor or
premises immediately adjacent to the trading floor if any such person
poses an immediate threat to the safety or persons or property or are
seriously disrupting Exchange operations, or if any such person is in
possession of a firearm.

Procedures for Review of OEO Rulings

    The role of the Exchange's Referee will remain unchanged. The
Referee may act in the capacity of an OEO respecting initial rulings
concerning requests for relief pursuant to Phlx Rule 124, Commentary
.02, such as relief from the Exchange's quote spread parameters. Such
rulings currently are, and will continue to be, final and may not be
appealed to the Exchange's Board of Directors. Also, floor official
rulings that currently may be appealed to the Referee, such as
adjustments or nullifications of executed transactions in the case of
an obvious error, likewise may be appealed to the Referee when such
rulings are made by an OEO pursuant to the proposal. A Referee will not
be permitted to rule on an appeal from his or her own decision.\8\
---------------------------------------------------------------------------

    \8\ See proposed Phlx Rule 124, Commentary .01.
---------------------------------------------------------------------------

III. Discussion

    After careful review, the Commission finds that the proposed rule
change is consistent with the requirements of the Act and the rules and
regulations thereunder applicable to a national securities exchange.\9\
In particular, the Commission finds that the proposed rule change is
consistent with Section 6(b)(1) of the Act,\10\ which requires an
exchange to be so organized and have the capacity to be able to carry
out the purposes of the Act and to comply, and to enforce compliance by
its members and persons associated with its members, with the
provisions of the Act, the rules and regulations thereunder, and the
rules of the exchange. The Commission also finds that the proposed rule
change is consistent with Section 6(b)(5) of the Act,\11\ which
requires, among other things, that the rules of a national securities
exchange 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.
---------------------------------------------------------------------------

    \9\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. 15 U.S.C. 78c(f).
    \10\ 15 U.S.C. 78f(b)(1).
    \11\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Commission believes that the Exchange's proposal to replace
floor officials with Options Exchange Officials is designed to produce
a more efficient process for the resolution of disputes on the Exchange
and determinations currently made by floor officials. For example, the
Commission believes that by reducing, in certain instances, the number
of persons required to make Exchange rulings from two floor officials,
or two floor officials with the concurrence of a Market Surveillance
officer, to one OEO, the proposal is designed to expedite the
Exchange's decision making process. In addition, by requiring an OEO to
be Exchange staff or a contract employee, the Commission believes that
the proposed rule change is designed to minimize the potential
conflicts of interest that may arise when a member of the Exchange is
called upon to act in the capacity of a floor official and to make a
decision on a matter involving one or more other members.

IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\12\ that the proposed rule change (SR-Phlx-2006-87), as modified
by Amendment Nos. 1 and 2, be, and hereby is, approved.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\13\
---------------------------------------------------------------------------

    \13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-11440 Filed 6-13-07; 8:45 am]

BILLING CODE 8010-01-P


[Federal Register Volume 82, Number 24 (Tuesday, February 7, 2017)]
[Notices]
[Pages 9608-9613]
[FR Doc No: 2017-02444]

=======================================================================
-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79916; File No. SR-NYSEArca-2017-05]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
of Proposed Rule Change Relating to the Listing and Trading of Shares
of the Direxion Daily Crude Oil Bull 3x Shares and Direxion Daily Crude
Oil Bear 3x Shares Under NYSE Arca Equities Rule 8.200

February 1, 2017.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that, on January 23, 2017, NYSE Arca, Inc. (the ``Exchange'' or
``NYSE Arca'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to list and trade the shares of the following
under NYSE Arca Equities Rule 8.200, Commentary .02 (``Trust Issued
Receipts''): Direxion Daily Crude Oil Bull 3x Shares and Direxion Daily
Crude Oil Bear 3x Shares. The proposed rule change is available on the
Exchange's Web site at www.nyse.com, at the principal office of the
Exchange, and at the Commission's Public Reference Room.

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

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

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

1. Purpose
    The Exchange proposes to list and trade shares (``Shares'') of the
following under NYSE Arca Equities Rule 8.200, Commentary .02, which
governs the listing and trading of Trust Issued Receipts: Direxion
Daily Crude Oil Bull 3x Shares and Direxion Daily Crude Oil Bear 3x
Shares (each a ``Fund'' and, collectively, the ``Funds'').\4\
---------------------------------------------------------------------------

    \4\ Commentary .02 to NYSE Arca Equities Rule 8.200 applies to
Trust Issued Receipts that invest in ``Financial Instruments.'' The
term ``Financial Instruments,'' as defined in Commentary .02(b)(4)
to NYSE Arca Equities Rule 8.200, means any combination of
investments, including cash; securities; options on securities and
indices; futures contracts; options on futures contracts; forward
contracts; equity caps, collars, and floors; and swap agreements.
---------------------------------------------------------------------------

    Each Fund is a series of the Direxion Shares ETF Trust II (the
``Trust''), a Delaware statutory trust.\5\ The Trust and the Funds are
managed and controlled by Direxion Asset Management, LLC (the
``Sponsor''). The Sponsor is registered as a commodity pool operator
(``CPO'') with the Commodity Futures Trading Commission (``CFTC'') and
is a member of the National Futures Association (``NFA'').\6\
---------------------------------------------------------------------------

    \5\ The Trust is registered under the Securities Act of 1933. On
December 14, 2016, the Trust filed with the Commission a
registration statement on Form S-1 under the Securities Act of 1933
(15 U.S.C. 77a) (``Securities Act'') relating to the Funds (File No.
333-215091) (the ``Registration Statement''). The description of the
operation of the Trust and the Funds herein is based, in part, on
the Registration Statement.
    \6\ The Commission has previously approved listing of Trust
Issued Receipts based on oil on the American Stock Exchange (now
known as NYSE MKT LLC) and NYSE Arca. See, e.g., Securities Exchange
Act Release Nos. 53582 (March 31, 2006), 71 FR 17510 (April 6, 2006)
(SR-Amex-2005-127) (order approving listing and trading of shares of
United States Oil Fund, LP); 57188 (January 23, 2008), 73 FR 5607
(January 30, 2008) (SR-Amex-2007-70) (order approving listing and
trading of shares of United States Heating Oil Fund, LP and United
States Gasoline Fund, LP); 61881 (April 9, 2010), 75 FR 20028 (April
16, 2010) (SR-NYSEArca-2010-14) (order approving listing and trading
of shares of United States Brent Oil Fund, LP); and 62527 (July 19,
2010), 75 FR 43606 (July 26, 2010) (order approving listing and
trading of shares of United States Commodity Index Fund).
---------------------------------------------------------------------------

    In its capacity as the Custodian for the Funds, Bank of New York
Mellon (the ``Custodian'') may hold the Funds' investment assets and
cash and cash equivalents pursuant to a custodial agreement. The
Custodian is also the transfer agent for the Shares. In addition, in
its capacity as Administrator for the Funds, U.S. Bancorp Fund
Services, LLC (the ``Administrator'') prepares and files certain
regulatory filings on behalf of the Funds.
    Foreside Fund Services, LLC serves as the distributor of the Shares
(the ``Distributor''). The Distributor is a broker-dealer registered
with the Commission under the Securities Exchange Act of 1934 and a
member of the Financial Industry Regulatory Authority (``FINRA''). The
Trust offers Shares of the Funds for sale through the Distributor in
``Creation Units'', as described below. The Distributor will also
assist the Sponsor and administrator with certain functions and duties
relating to distribution and marketing.
Direxion Daily Crude Oil Bull 3x Shares
    According to the Registration Statement, the investment objective
of the Fund is to seek, on a daily basis, investment results that
correspond (before fees and expenses) to a multiple three times (3x )
of the daily performance of the Bloomberg WTI Crude Oil Subindex\SM\, a
subindex of the Bloomberg Commodity Index\SM\ (the

``Benchmark'').\7\ The Benchmark is intended to reflect the performance
of crude oil as measured by the price of West Texas Intermediate crude
oil futures contracts traded on the New York Mercantile Exchange (the
``NYMEX,'' which is part of the Chicago Mercantile Exchange (``CME'')),
including the impact of rolling,\8\ without regard to income earned on
cash positions. The Fund will not be directly linked to the ``spot''
price of crude oil. The Fund does not seek to achieve its investment
objective over a period greater than a single trading day.\9\
---------------------------------------------------------------------------

    \7\ According to the Registration Statement, the Bloomberg WTI
Crude Oil Subindex\SM\ is a ``rolling index,'' which means that the
Index does not take physical possession of any commodities. See also
note 8, infra.
    \8\ According to the Registration Statement, futures contracts
held by the Funds near expiration are generally closed out and
replaced by contracts with a later expiration as required by the
Bloomberg WTI Crude Oil Subindex\SM\. This process is referred to as
``rolling.'' The Funds do not intend to hold futures contracts
through expiration, but instead to ``roll'' their respective
positions.
    \9\ According to the Registration Statement, a single trading
day is measured from the time a Fund calculates its NAV to the time
of a Fund's next NAV calculation.
---------------------------------------------------------------------------

Direxion Daily Crude Oil Bear 3x Shares
    According to the Registration Statement, the investment objective
of the Fund is to seek, on a daily basis, investment results that
correspond (before fees and expenses) to three times (3x ) the inverse
of the performance of the Benchmark which, as noted, is intended to
reflect the performance of crude oil as measured by the price of West
Texas Intermediate crude oil futures contracts traded on the NYMEX. The
Fund will not be directly linked to the ``spot'' price of crude oil.
The Fund does not seek to achieve its investment objective over a
period greater than a single trading day.\10\
---------------------------------------------------------------------------

    \10\ According to the Registration Statement, the return of a
Fund for a period longer than a single trading day is the result of
its return for each day compounded over the period and thus will
usually differ from a Fund's multiple times the return of the
Benchmark for the same period.
---------------------------------------------------------------------------

Investment Strategies of the Funds
    In seeking to achieve the Funds' investment objectives, the Sponsor
will utilize a mathematical approach to determine the type, quantity
and mix of investment positions that the Sponsor believes, in
combination, should produce daily returns consistent with the Funds'
respective objectives. The Sponsor would rely on a pre-determined model
to generate orders that result in repositioning the Funds' investments
in accordance with their respective investment objectives.
    The Funds will seek to achieve their investment objectives by
investing, under normal market conditions,\11\ substantially all of its
assets in oil futures contracts traded in the U.S. and listed options
on such contracts (together, the ``Futures Contracts''). The Funds'
investments in Futures Contracts will be used to produce economically
``leveraged'' or ``inverse leveraged'' investment results for the
Funds.
---------------------------------------------------------------------------

    \11\ The term ``normal market conditions'' includes, but is not
limited to, the absence of trading halts in the applicable financial
markets generally; operational issues (e.g., systems failure)
causing dissemination of inaccurate market information; or force
majeure type events such as natural or manmade disaster, act of God,
armed conflict, act of terrorism, riot or labor disruption or any
similar intervening circumstance.
---------------------------------------------------------------------------

    In the event position or accountability limits are reached with
respect to Futures Contracts, each Fund may obtain exposure to the
Benchmark through investment in swap transactions and forward contracts
referencing such Benchmark or other benchmarks the Sponsor believes
should be closely correlated to the performance of each Fund's
benchmark such as the Energy Select Sector Index or the S&P Oil & Gas
Exploration & Production Select Industry Index (the ``Financial
Instruments''). To the extent that the Trust invests in Financial
Instruments, it would first make use of exchange-traded Financial
Instruments, if available. If an investment in exchange-traded
Financial Instruments is unavailable, then the Trust would invest in
Financial Instruments that clear through derivatives clearing
organizations that satisfy the Trust's criteria, if available. If an
investment in cleared Financial Instruments is unavailable, then the
Trust would invest in other Financial Instruments, including uncleared
Financial Instruments in the over-the-counter (``OTC'') market. The
Funds may also invest in Financial Instruments if the market for a
specific futures contract experiences emergencies (e.g., natural
disaster, terrorist attack or an act of God) or disruptions (e.g., a
trading halt or a flash crash) that prevent or make it impractical for
a Fund to obtain the appropriate amount of investment exposure using
Futures Contracts.
    The Funds will invest such that each Fund's exposure to the
Benchmark will consist substantially of Futures Contracts. The Funds'
remaining net assets, which may be substantial, may be invested in cash
or cash equivalents and/or U.S. Treasury securities or other high
credit quality, short-term fixed-income or similar securities (such as
shares of money market funds and collateralized repurchase agreements)
for direct investment or as collateral for the Funds' investments.
    The Funds do not intend to hold Futures Contracts through
expiration, but instead to ``roll'' their respective positions. When
the market for these contracts is such that the prices are higher in
the more distant delivery months than in the nearer delivery months,
the sale during the course of the ``rolling process'' of the more
nearby contract would take place at a price that is lower than the
price of the more distant contract. This pattern of higher futures
prices for longer expiration Futures Contracts is referred to as
``contango.'' Alternatively, when the market for these contracts is
such that the prices are higher in the nearer months than in the more
distant months, the sale during the course of the ``rolling process''
of the more nearby contract would take place at a price that is higher
than the price of the more distant contract. This pattern of higher
futures prices for shorter expiration futures contracts is referred to
as ``backwardation.'' The presence of contango in certain Futures
Contracts at the time of rolling could adversely affect a Fund with
long positions, and positively affect a Fund with short positions.
Similarly, the presence of backwardation in certain futures contracts
at the time of rolling such contracts could adversely affect a Fund
with short positions and positively affect a Fund with long positions.
    According to the Registration Statement, U.S. future [sic]
exchanges have established accountability levels and position limits on
the maximum net long or net short Futures Contracts in commodity
interests that any person or group of persons under common trading
control (other than as a hedge, which an investment by a Fund is not)
may hold, own or control. These levels and position limits apply to the
Futures Contracts that each Fund would invest in to meet its investment
objective. In addition to accountability levels and position limits,
U.S. futures exchanges also set daily price fluctuation limits on
Futures Contracts. The daily price fluctuation limit establishes the
maximum amount that the price of a Futures Contract may vary either up
or down from the previous day's settlement price.
    The Funds do not expect to have leveraged exposure greater than
three times (3x) the Funds' net assets. Thus, the maximum margin held
at a Future Commission Merchant would not exceed three times the margin
requirement for either Fund.

Net Asset Value
    According to the Registration Statement, a Fund's per Share NAV
will be calculated by taking the current market value of its total
assets; subtracting any liabilities; and dividing that total by the
total number of outstanding Shares. Each Fund's NAV will be calculated
on each Business Day that the New York Stock Exchange LLC (``NYSE'') is
open. Each Fund will compute its NAVs at 2:30 p.m. Eastern Time
(``E.T.''), which is the designated closing time of the crude oil
futures market on NYMEX,\12\ or if the NYSE closes earlier than 2:30
p.m. E.T., each Fund will compute its NAVs at the time the NYSE closes.
Each Fund's NAV will be calculated only once each trading day. Each
Fund's daily NAV may be found at www.direxioninvestments.com.
---------------------------------------------------------------------------

    \12\ The normal trading hours of the NYMEX are 10:00 a.m. E.T.
to 2:30 p.m. E.T.
---------------------------------------------------------------------------

    In calculating the NAV of a Fund, the settlement value of a Fund's
non-exchange traded Financial Instruments will be determined by
applying the then-current prices for the applicable reference asset to
the terms of such Fund's non-exchange traded Financial Instruments.
However, in the event that an underlying reference asset is not trading
due to the operation of daily limits or otherwise, the Sponsor may in
its sole discretion choose to fair value the reference asset in order
to value a Fund's non-exchange traded Financial Instruments for
purposes of the NAV calculation. Such fair value prices would generally
be determined based on available inputs about the current value of the
underlying reference assets and would be based on principles that the
Sponsor deems fair and equitable so long as such principles are
consistent with normal industry standards.
    Futures Contracts traded on a U.S. exchange will be calculated at
their then current market value, which is based upon the settlement or
the last traded price before the NAV calculation time, for that
particular Futures Contract traded on the applicable exchange on the
date with respect to which NAV is being determined; provided, that if a
Futures Contract traded on an exchange could not be liquidated on such
day, due to the operation of daily limits or other rules of the
exchange upon which that position is traded or otherwise, the Sponsor
may in its sole discretion choose to determine a fair value price as
the basis for determining the market value of such position for such
day.
    Cash and cash equivalents will be valued on the basis of broker
quotes or valuations provided by a third party pricing service.
    Collateralized repurchase agreements will be valued based on price
quotations or other equivalent indications of value provided by a
third-party pricing service.
Indicative Fund Value
    In order to provide updated information relating to the Funds for
use by investors and market professionals, the Exchange will calculate
an updated ``Indicative Fund Value'' (``IFV''). The IFV will be
calculated by using the prior day's closing net assets of a Fund as a
base and updating throughout the Exchange's Core Trading Session of
9:30 a.m. E.T. to 4:00 p.m. E.T. changes in the value of the Futures
Contracts and Financial Instruments held by a Fund.
    The IFV will be disseminated on a per Share basis every 15 seconds
during the Exchange's Core Trading Session.
    The IFV will be available through on-line information services.
Creation and Redemption of Shares
    According to the Registration Statement, each Fund intends to
create and redeem Shares in one or more Creation Units.\13\ A creation
transaction generally takes place when an Authorized Participant
deposits generally a specified amount of cash in exchange for a
specified number of Creation Units. Similarly, Shares can be redeemed
only in Creation Units for cash. The prices at which creations and
redemptions occur would be based on the next calculation of the NAV
after an order is received.
---------------------------------------------------------------------------

    \13\ A Creation Unit is a block of 50,000 Shares of a Fund.
Except when aggregated in Creation Units, the Shares are not
redeemable securities.
---------------------------------------------------------------------------

    Only Authorized Participants may purchase and redeem Creation
Units. An Authorized Participant is an entity that has entered into an
Authorized Participant Agreement with the Trust and the Sponsor.
Creation Procedures
    On any ``Business Day'', an Authorized Participant may place an
order with the Distributor to create one or more Creation Units. For
purposes of processing both purchase and redemption orders, a
``Business Day'' means any day other than a day when any of the NYSE,
NYSE Arca, the Chicago Board Options Exchange, Incorporated (``CBOE''),
CBOE Futures Exchange (``CFE''), the Chicago Mercantile Exchange
(``CME'') (including the Chicago Board of Trade and NYMEX) or the
Intercontinental Exchange (``ICE'') or other exchange material to the
valuation or operation of the Funds is closed for regular trading.
Purchase orders must be placed by 2:30 p.m. E.T. or earlier if the NYSE
closes before the cut-off time.
Redemption Procedures
    According to the Registration Statement, the procedures by which an
Authorized Participant can redeem one or more Creation Units mirror the
procedures for the creation of Creation Units. On any Business Day, an
Authorized Participant may place an order with the Distributor to
redeem one or more Creation Units.
    The redemption procedures allow Authorized Participants to redeem
Creation Units. Individual shareholders may not redeem directly from a
Fund. By placing a redemption order, an Authorized Participant agrees
to deliver the Creation Units to be redeemed through the Depository
Trust Company's (``DTC'') book entry system to the applicable Fund not
later than noon E.T. on the first Business Day immediately following
the redemption order date (T+1). The Sponsor reserves the right to
extend the deadline for a Fund to receive the Creation Units required
for settlement up to the third Business Day following the redemption
order date (T+3).
Availability of Information
    The NAV for the Funds' Shares will be disseminated daily to all
market participants at the same time. The intraday, closing prices, and
settlement prices of the Futures Contracts will be readily available
from the applicable futures exchange Web sites, automated quotation
systems, published or other public sources, or major market data
vendors.
    Complete real-time data for the Futures Contracts is available by
subscription through on-line information services. ICE Futures U.S. and
NYMEX also provide delayed futures and options on futures information
on current and past trading sessions and market news free of charge on
their respective Web sites. The specific contract specifications for
Futures Contracts would also be available on such Web sites, as well as
other financial informational sources. Quotation and last-sale
information regarding the Shares will be disseminated through the
facilities of the Consolidated Tape Association (``CTA''). Quotation
information for cash equivalents and OTC swaps may be obtained from
brokers and dealers who make markets in such instruments. Quotation
information for exchange-traded swaps will be available from the
applicable exchange and major market vendors. Intra-day price
information for

forward contracts will be available from major market data vendors. The
IFV will be available through on-line information services.
    In addition, the Funds' Web site, www.direxioninvestments.com, will
display the applicable end of day closing NAV. The daily holdings of
each Fund will be available on the Funds' Web site before 9:30 a.m.
E.T.\14\ Each Fund's total portfolio composition will be disclosed each
Business Day that NYSE Arca is open for trading, on the Funds' Web
site. The Web site disclosure of portfolio holdings will be made daily
and will include, as applicable, (i) the composite value of the total
portfolio, (ii) the name, percentage weighting, and value of the
Futures Contracts and Financial Instruments, (iii) the name and value
of each Treasury security and cash equivalent, and (iv) the amount of
cash held in each Fund's portfolio. The Funds' Web site will be
publicly accessible at no charge. The spot price of oil also is
available on a 24-hour basis from major market data vendors.
---------------------------------------------------------------------------

    \14\ The Web site disclosure of portfolio holdings will be made
daily and will include, as applicable, (i) the composite value of
the total portfolio, (ii) the name, percentage weighting, and value
of the Futures Contracts and Financial Instruments, (iii) the name
and value of each Treasury security and cash equivalent, and (iv)
the amount of cash held in each Fund's portfolio.
---------------------------------------------------------------------------

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 a Fund.\15\ Trading in Shares of a Fund 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.
---------------------------------------------------------------------------

    \15\ See NYSE Arca Equities Rule 7.12.
---------------------------------------------------------------------------

    The Exchange may halt trading during the day in which an
interruption to the dissemination of the IFV or the value of the
Benchmark occurs. If the interruption to the dissemination of the IFV,
the value of the [sic] or the value of the Benchmark persists past the
trading day in which it occurred, the Exchange will halt trading no
later than the beginning of the trading day following the interruption.
In addition, if the Exchange becomes aware that the NAV with respect to
the Shares is not disseminated to all market participants at the same
time, it will halt trading in the Shares until such time as the NAV is
available to all market participants.
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. E.T. in accordance with
NYSE Arca Equities Rule 7.34 (Early, 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, 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.
    The Shares will conform to the initial and continued listing
criteria under NYSE Arca Equities Rule 8.200. The trading of the Shares
will be subject to NYSE Arca Equities Rule 8.200, Commentary .02(e),
which sets forth certain restrictions on Equity Trading Permit
(``ETP'') Holders acting as registered Market Makers in Trust Issued
Receipts to facilitate surveillance. The Exchange represents that, for
initial and continued listing, each Fund will be in compliance with
Rule 10A-3 \16\ under the Act, 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.
---------------------------------------------------------------------------

    \16\ 17 CFR 240.10A-3.
---------------------------------------------------------------------------

Surveillance
    The Exchange represents that trading in the Shares of each Fund
will be subject to the existing trading surveillances administered by
the Exchange, as well as cross-market surveillances administered by
FINRA on behalf of the Exchange, which are designed to detect
violations of Exchange rules and applicable federal securities
laws.\17\ 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 federal
securities laws applicable to trading on the Exchange.
---------------------------------------------------------------------------

    \17\ FINRA conducts cross-market surveillances on behalf of the
Exchange pursuant to a regulatory services agreement. The Exchange
is responsible for FINRA's performance under this regulatory
services agreement.
---------------------------------------------------------------------------

    The surveillances referred to above generally focus on detecting
securities trading outside their normal patterns, which could be
indicative of manipulative or other violative activity. 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 or FINRA, on behalf of the Exchange, or both, will
communicate as needed regarding trading in the Shares and certain
Futures Contracts with other markets and other entities that are
members of the Intermarket Surveillance Group (``ISG''), and the
Exchange or FINRA, on behalf of the Exchange, or both, may obtain
trading information regarding trading in the Shares and certain Futures
Contracts from such markets and other entities. In addition, the
Exchange may obtain information regarding trading in the Shares and
certain Futures Contracts from markets and other entities that are
members of ISG or with which the Exchange has in place a comprehensive
surveillance sharing agreement (``CSSA'').\18\
---------------------------------------------------------------------------

    \18\ For a list of the current members of ISG, see
www.isgportal.org. The Exchange notes that not all components of a
Fund may trade on markets that are members of ISG or with which the
Exchange has in place a CSSA.
---------------------------------------------------------------------------

    Not more than 10% of the net assets of a Fund in the aggregate
invested in Futures Contracts shall consist of Futures Contracts whose
principal market is not a member of the ISG or is a market with which
the Exchange does not have a CSSA.
    In addition, the Exchange also has a general policy prohibiting the
distribution of material, non-public information by its employees.
    All statements and representations made in this filing regarding
(a) the description of the portfolios of the Funds or the Benchmark,
and (b) limitations on portfolio holdings, reference assets or the
Benchmark shall constitute continued listing requirements for listing
the Shares on the Exchange.
    The issuer has represented to the Exchange that it will advise the
Exchange of any failure by the Funds to comply with the continued
listing requirements, and, pursuant to its obligations under Section
19(g)(1) of the Act, the Exchange will monitor for compliance with the
continued listing requirements. If a Fund is not in compliance with the
applicable listing requirements, the Exchange will commence delisting
procedures under NYSE Arca Equities Rule 5.5(m).

Information Bulletin
    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. Specifically, the
Information Bulletin will discuss the following: (1) The risks involved
in trading the Shares during the Early and Late Trading Sessions when
an updated IFV will not be calculated or publicly disseminated; (2) the
procedures for purchases and redemptions of Shares in Creation Units
(and that Shares are not individually redeemable); (3) 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; (4) how information regarding the IFV is
disseminated; (5) that a static IFV will be disseminated, between the
close of trading on the ICE Futures U.S. and NYMEX and the close of the
NYSE Arca Core Trading Session; (6) 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 (7)
trading information.
    Prior to the commencement of trading, the Exchange will inform its
ETP Holders of the suitability requirements of NYSE Arca Equities Rule
9.2(a) in an Information Bulletin. Specifically, ETP Holders will be
reminded in the Information Bulletin that, in recommending transactions
in the Shares, they must have a reasonable basis to believe that (1)
the recommendation is suitable for a customer given reasonable inquiry
concerning the customer's investment objectives, financial situation,
needs, and any other information known by such ETP Holder, and (2) the
customer can evaluate the special characteristics, and is able to bear
the financial risks, of an investment in the Shares. In connection with
the suitability obligation, the Information Bulletin will also provide
that ETP Holders must make reasonable efforts to obtain the following
information: (1) The customer's financial status; (2) the customer's
tax status; (3) the customer's investment objectives; and (4) such
other information used or considered to be reasonable by such ETP
Holder or registered representative in making recommendations to the
customer.
    Further, the Exchange states that FINRA has implemented increased
sales practice and customer margin requirements for FINRA members
applicable to inverse, leveraged and inverse leveraged exchange-traded
securities (which include the Shares) and options on such securities,
as described in FINRA Regulatory Notices 09-31 (June 2009), 09-53
(August 2009), and 09-65 (November 2009) (collectively, ``FINRA
Regulatory Notices''). ETP Holders that carry customer accounts will be
required to follow the FINRA guidance set forth in these notices. As
noted above, each Fund will seek, on a daily basis, investment results
that correspond (before fees and expenses) to 3x or -3x, respectively,
the performance of the Benchmark). Over a period of time in excess of
one day, the cumulative percentage increase or decrease in the NAV of
the Shares of a Fund may diverge significantly from a multiple or
inverse multiple of the cumulative percentage decrease or increase in
the Benchmark due to a compounding effect.
    In addition, the Information Bulletin will advise ETP Holders,
prior to the commencement of trading, of the prospectus delivery
requirements applicable to a Fund. The Information Bulletin will also
discuss any exemptive, no-action, and interpretive relief granted by
the Commission from any rules under the Act. In addition, the
Information Bulletin will reference that a Fund is subject to various
fees and expenses described in the Registration Statement. The
Information Bulletin will also reference that the CFTC has regulatory
jurisdiction over the trading of Futures Contracts traded on U.S.
markets.
    The Information Bulletin will also disclose the trading hours of
the Shares that the NAV for the Shares will be calculated after 2:30
p.m. E.T. each trading day. The Information Bulletin will disclose that
information about the Shares will be publicly available on the Funds'
Web site.
2. Statutory Basis
    The basis under the Act for this proposed rule change is the
requirement under Section 6(b)(5) \19\ 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.
---------------------------------------------------------------------------

    \19\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange believes that the proposed rule change is designed to
prevent fraudulent and manipulative acts and practices and to protect
investors and the public interest 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 8.200. The Exchange has in place
surveillance procedures that are adequate to properly monitor trading
in the Shares in all trading sessions and to deter and detect
violations of Exchange rules and applicable federal securities laws.
The Exchange or FINRA, on behalf of the Exchange, or both, will
communicate as needed regarding trading in the Shares, and certain
Futures Contracts with other markets and other entities that are
members of the ISG, and the Exchange or FINRA, on behalf of the
Exchange, or both, may obtain trading information regarding trading in
the Shares and certain Futures Contracts from such markets and other
entities. In addition, the Exchange may obtain information regarding
trading in the Shares and certain Futures Contracts from markets and
other entities that are members of ISG or with which the Exchange has
in place a CSSA. Not more than 10% of the net assets of the Fund in the
aggregate invested in Futures Contracts shall consist of Futures
Contracts whose principal market is not a member of the ISG or is a
market with which the Exchange does not have a CSSA. The intraday,
closing prices, and settlement prices of the Futures Contracts will be
readily available from the applicable futures exchange Web sites,
automated quotation systems, published or other public sources, or
major market data vendors Web site or on-line information services.
    Complete real-time data for the Futures Contracts is available by
subscription from on-line information services. ICE Futures U.S. and
NYMEX also provide delayed futures information on current and past
trading sessions and market news free of charge on their Web sites. The
specific contract specifications for Futures Contracts would also be
available on such Web sites, as well as other financial informational
sources. Information regarding options will be available from the
applicable exchanges or major market data vendors. Quotation and last-
sale information regarding the Shares will be disseminated through the
facilities of the CTA. In addition, the Funds' Web site, will display
the applicable end of day closing NAV. Each Fund's total portfolio
composition will be disclosed each Business Day, on the Funds' Web
site. The Web site disclosure of portfolio holdings will be made daily
and will include, as applicable, (i) the composite value of the total
portfolio, (ii) the name, percentage weighting, and value of the

Futures Contracts and Financial Instruments, (iii) the name and value
of each Treasury security and cash equivalent, and (iv) the amount of
cash held in each Fund's portfolio.
    Moreover, prior to the commencement of trading, the Exchange will
inform its Equity Trading Permit Holders in an Information Bulletin of
the special characteristics and risks associated with trading the
Shares and of the suitability requirements of NYSE Arca Equities Rule
9.2(a). The Information Bulletin will advise ETP Holders, prior to the
commencement of trading, of the prospectus delivery requirements
applicable to a Fund. The Information Bulletin will also discuss any
exemptive, no-action, and interpretive relief granted by the Commission
from any rules under the Act. In addition, the Information Bulletin
will reference that a Fund is subject to various fees and expenses
described in the Registration Statement. The Information Bulletin will
also reference that the CFTC has regulatory jurisdiction over the
trading of Futures Contracts traded on U.S. markets. The Information
Bulletin will also disclose the trading hours of the Shares and that
the NAV for the Shares will be calculated after 2:30 p.m. E.T. each
trading day. The Information Bulletin will disclose that information
about the Shares will be publicly available on the Funds' Web site.
    Trading in Shares of a Fund 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.
    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 it will facilitate the listing and trading of
additional types of Trust Issued Receipts based on oil prices that will
enhance competition among market participants, to the benefit of
investors and the marketplace. As noted above, the Exchange has in
place surveillance procedures that are adequate to properly monitor
trading in the Shares in all trading sessions and to deter and detect
violations of Exchange rules and applicable federal securities laws.

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 purpose of the Act. The Exchange notes that the
proposed rule change will facilitate the listing and trading of
additional types of Trust Issued Receipts based on oil prices and that
will enhance competition among market participants, to the benefit of
investors and the marketplace.

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

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

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

    Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period up to 90 days (i) as the
Commission may designate 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 will:
(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 email to<EMAIL_ADDRESS>Please include
File Number SR-NYSEArca-2017-05 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NYSEArca-2017-05. 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 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 Number SR-NYSEArca-2017-05 and should
be submitted on or before February 28, 2017.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\20\
Eduardo A. Aleman,
Assistant Secretary.
---------------------------------------------------------------------------

    \20\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

[FR Doc. 2017-02444 Filed 2-6-17; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 77, Number 165 (Friday, August 24, 2012)]
[Notices]
[Pages 51588-51589]
[FR Doc No: 2012-20826]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

Submission for OMB Review; Comment Request

Upon Written Request, Copies Available From: Securities and Exchange
Commission, Office of Investor Education and Advocacy, Washington, DC
20549-0213.

Extension:
    Rule 154, SEC File No. 270-438, OMB Control No. 3235-0495.

    Notice is hereby given that, under the Paperwork Reduction Act of
1995 (44 U.S.C. 3501-3520), the Securities and Exchange Commission (the
``Commission'') has submitted to the Office of Management and Budget a
request for extension of the previously approved collection of
information discussed below.
    The federal securities laws generally prohibit an issuer,
underwriter, or dealer from delivering a security for sale unless a
prospectus meeting certain requirements accompanies or precedes the
security. Rule 154 (17 CFR 230.154) under the Securities Act of 1933
(15 U.S.C. 77a) (the ``Securities Act'') permits, under certain
circumstances, delivery of a single prospectus to investors who
purchase securities from the same issuer and share the same address
(``householding'') to satisfy the applicable prospectus delivery
requirements.\1\ The purpose of rule 154 is to reduce the amount of
duplicative prospectuses delivered to investors sharing the same
address.
---------------------------------------------------------------------------

    \1\ The Securities Act requires the delivery of prospectuses to
investors who buy securities from an issuer or from underwriters or
dealers who participate in a registered distribution of securities.
See Securities Act sections 2(a)(10), 4(1), 4(3), 5(b) (15 U.S.C.
77b(a)(10), 77d(1), 77d(3), 77e(b)); see also rule 174 under the
Securities Act (17 CFR 230.174) (regarding the prospectus delivery
obligation of dealers); rule 15c2-8 under the Securities Exchange
Act of 1934 (17 CFR 240.15c2-8) (prospectus delivery obligations of
brokers and dealers).
---------------------------------------------------------------------------

    Under rule 154, a prospectus is considered delivered to all
investors at a shared address, for purposes of the federal securities
laws, if the person relying on the rule delivers the prospectus to the
shared address, addresses the prospectus to the investors as a group or
to each of the investors individually, and the investors consent to the
delivery of a single prospectus. The rule applies to prospectuses and
prospectus supplements. Currently, the rule permits householding of all
prospectuses by an issuer, underwriter, or dealer relying on the rule
if, in addition to the other conditions set forth in the rule, the
issuer, underwriter, or dealer has obtained from each investor written
or implied consent to householding.\2\ The rule requires issuers,
underwriters, or dealers that wish to household prospectuses with
implied consent to send a notice to each investor stating that the
investors in the household will receive one prospectus in the future
unless the investors provide contrary instructions. In addition, at
least once a year, issuers, underwriters, or dealers, relying on rule
154 for the householding of prospectuses relating to open-end
management investment companies that are registered under the
Investment Company Act of 1940 (``mutual funds'') must explain to
investors who have provided written or implied consent how they can
revoke their consent.\3\ Preparing and sending the notice and the
annual explanation of the right to revoke are collections of
information.
---------------------------------------------------------------------------

    \2\ Rule 154 permits the householding of prospectuses that are
delivered electronically to investors only if delivery is made to a
shared electronic address and the investors give written consent to
householding. Implied consent is not permitted in such a situation.
See rule 154(b)(4).
    \3\ See rule 154(c).
---------------------------------------------------------------------------

    The rule allows issuers, underwriters, or dealers to household
prospectuses if certain conditions are met. Among the conditions with
which a person relying on the rule must comply are providing notice to
each investor that only one prospectus will be sent to the household
and, in the case of issuers that are mutual funds, providing to each
investor who consents to householding an annual explanation of the
right to revoke consent to the delivery of a single prospectus to
multiple investors sharing an address. The purpose of the notice and
annual explanation requirements of the rule is to ensure that investors
who wish to receive individual copies of prospectuses are able to do
so.
    Although rule 154 is not limited to mutual funds, the Commission
believes that it is used mainly by mutual funds and by broker-dealers
that deliver mutual fund prospectuses. The Commission is unable to
estimate the number of issuers other than mutual funds that rely on the
rule.
    The Commission estimates that, as of March 2012, there are
approximately 1,700 mutual funds, approximately 400 of which engage in
direct marketing and therefore deliver their own prospectuses. Of the
approximately 400 mutual funds that engage in direct marketing, the
Commission estimates that approximately half of these mutual funds
(200) (i) do not send the implied consent notice requirement because
they obtain affirmative written consent to household prospectuses in
the fund's account opening documentation; or (ii) do not take advantage
of the householding provision because of electronic delivery options
which lessen the economic and operational benefits of rule 154 when
compared with the costs of compliance. Therefore, the Commission
estimates that each direct-marketed fund will spend an average of 20
hours per year complying with the notice requirement of the rule, for a
total of 4,000 hours. Of the 400 mutual funds that engage in direct
marketing, the Commission estimates that approximately seventy-five
percent (300) of these funds will each spend 1 hour complying with the
annual explanation of the right to revoke requirement of the rule, for
a total of 300 hours. The Commission estimates that there are
approximately 280 broker-dealers that carry customer accounts and,
therefore, may be required to deliver mutual fund prospectuses. The
Commission estimates that each affected broker-dealer will spend, on
average, approximately 20 hours complying with the notice requirement
of the rule, for a total of 5,600 hours. Each broker-dealer will also
spend 1 hour complying with the annual explanation of the right to
revoke requirement, for a total of 280 hours. Therefore, the total
number of respondents for rule 154 is 580 (300 mutual funds plus 280
broker-dealers), and the estimated total hour burden is approximately
10,180 hours (4,300 hours for mutual funds plus 5,880 hours for broker-
dealers).
    The estimate of average burden hours is made solely for the
purposes of the Paperwork Reduction Act, and is not derived from a
comprehensive or even a representative survey or study of the costs of
Commission rules and forms.
    Compliance with the collection of information requirements of the
rule is necessary to obtain the benefit of relying on the rule.
Responses to the collections of information will not be kept
confidential. The rule does not require these records be retained for
any specific period of time. An agency may not conduct or sponsor, and
a person is not required to respond to, a collection of information
unless it displays a currently valid control number.
    The public may view the background documentation for this
information collection at the following Web site, www.reginfo.gov.
Comments should be directed to: (i) Desk Officer for the Securities and
Exchange Commission, Office of Information and Regulatory Affairs,
Office of Management and Budget, Room 10102, New Executive Office
Building, Washington, DC 20503,

or by sending an email to<EMAIL_ADDRESS>and (ii) Thomas
Bayer, Director/Chief Information Officer, Securities and Exchange
Commission, c/o Remi Pavlik-Simon, 6432 General Green Way, Alexandria,
VA 22312 or send an email to<EMAIL_ADDRESS>Comments must be
submitted to OMB within 30 days of this notice.

    Dated: August 20, 2012.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2012-20826 Filed 8-23-12; 8:45 am]
BILLING CODE 8011-01-P