[Federal Register Volume 82, Number 179 (Monday, September 18, 2017)]
[Notices]
[Pages 43621-43627]
[FR Doc No: 2017-19808]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81599; File No. SR-BatsBZX-2017-30]

Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Order
Instituting Proceedings To Determine Whether To Approve or Disapprove a
Proposed Rule Change To Permit the Listing and Trading of Managed
Portfolio Shares; and To List and Trade Shares of the Following Under
Proposed Rule 14.11(k): ClearBridge Appreciation ETF; ClearBridge Large
Cap ETF; ClearBridge MidCap Growth ETF; ClearBridge Select ETF; and
ClearBridge All Cap Value ETF

September 13, 2017.
    On June 1, 2017, Bats BZX Exchange, Inc. (``Exchange'' or ``BZX'')
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:
(1) Adopt Rule 14.11(k) (Managed Portfolio Shares); and (2) list and
trade shares (``Shares'') of the ClearBridge Appreciation ETF;
ClearBridge Large Cap ETF; ClearBridge MidCap Growth ETF; ClearBridge
Select ETF; and ClearBridge All Cap Value ETF under proposed Rule
14.11(k). The proposed rule change was published for comment in the
Federal Register on June 19, 2017.\3\ On July 28, 2017, pursuant to
Section 19(b)(2) of the Act,\4\ the Commission designated a longer
period within which to approve the proposed rule change, disapprove the
proposed rule change, or institute proceedings to determine whether to
disapprove the proposed rule change.\5\ The Commission has received
four comments on the proposed rule change.\6\ This order institutes
proceedings under Section 19(b)(2)(B) of the Act \7\ to determine
whether to approve or disapprove 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. 80911 (June 13,
2017), 82 FR 27925 (``Notice'').
    \4\ 15 U.S.C. 78s(b)(2).
    \5\ See Securities Exchange Act Release No. 81247, 82 FR 36031
(August 2, 2017). The Commission designated September 17, 2017, as
the date by which the Commission shall approve or disapprove, or
institute proceedings to determine whether to disapprove, the
proposed rule change.
    \6\ See Letter from Gary L. Gastineau, President, ETF
Consultants.com, Inc., to Brent J. Fields, Secretary, Commission,
dated July 7, 2017 (``Gastineau Letter''); Letter from Todd J.
Broms, Chief Executive Officer, Broms & Company LLC, to Brent J.
Fields, Secretary, Commission, dated July 10, 2017 (``Broms
Letter''); Letter from James J. Angel, Associate Professor of
Finance, Georgetown University, McDonough School of Business, to the
Commission, dated July 10, 2017 (``Angel Letter''); and Letter from
Terence W. Norman, Founder, Blue Tractor Group, LLC, to Brent J.
Fields, Secretary, Commission, dated August 1, 2017 (``Norman
Letter''). The comment letters are available on the Commission's Web
site at: https://www.sec.gov/comments/sr-batsbzx-2017-30/batsbzx201730.htm.
    \7\ 15 U.S.C. 78s(b)(2)(B).
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I. Summary of the Exchange's Description of the Proposed Rule Change
8
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    \8\ For a complete description of the Exchange's proposal,
including a description of the Precidian ETF Trust II (``Trust''),
see the Notice, supra note 3.
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    The Exchange proposes to adopt new Rule 14.11(k), which would
govern the listing and trading of ``Managed Portfolio Shares.'' \9\ The
Exchange also proposes to list and trade Shares of the ClearBridge
Appreciation ETF; ClearBridge Large Cap ETF; ClearBridge MidCap Growth
ETF; ClearBridge Select ETF; and ClearBridge All Cap Value ETF under
proposed Rule 14.11(k) (each a ``Fund,'' and collectively the
``Funds'').
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    \9\ Proposed Rule 14.11(k)(3)(A) defines the term ``Managed
Portfolio Share'' as a security that (a) is issued by a registered
investment company (``Investment Company'') organized as an open-end
management investment company or similar entity, that invests in a
portfolio of securities selected by the Investment Company's
investment adviser consistent with the Investment Company's
investment objectives and policies; and (b) when aggregated in a
number of shares equal to a Redemption Unit (as defined in proposed
Rule 14.11(k)(3)(C)) or multiples thereof, may be redeemed at the
request of an authorized participant (as defined in the Investment
Company's Form N-1A filed with the Commission), which authorized
participant will be paid through a confidential account
(``Confidential Account'') established for its benefit, a portfolio
of securities and/or cash with a value equal to the next determined
net asset value (``NAV'').
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A. Description of the Funds

    The portfolio for each Fund will consist primarily of long and/or
short positions in U.S.-exchange-listed securities and shares issued by
other U.S. exchange-listed exchange-traded funds (``ETFs'').\10\ All
exchange-listed equity securities in which the Funds will invest will
be listed and traded on U.S. national securities exchanges.
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    \10\ The Exchange represents that, for purposes of describing
the holdings of the Funds, ETFs include Portfolio Depository
Receipts (as described in Rule 14.11(b)); Index Fund Shares (as
described in Rule 14.11(c)); and Managed Fund Shares (as described
in Rule 14.11(i)). The ETFs in which a Fund will invest all will be
listed and traded on national securities exchanges. While the Funds
may invest in inverse ETFs, the Funds will not invest in leveraged
(e.g., 2X, -2X, 3X or -3X) ETFs.
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1. ClearBridge Appreciation ETF
    The ClearBridge Appreciation ETF will seek to provide long-term
appreciation of shareholders' capital. The Fund will seek to achieve
its investment objective by investing primarily in U.S. exchange-listed
equity securities. The Fund will typically invest in medium and large
capitalization companies, but may also invest in small capitalization
companies.
2. ClearBridge Large Cap ETF
    The ClearBridge Large Cap ETF will seek long-term capital
appreciation. The Fund will seek to achieve its investment objective by
taking long and possibly short positions in equity securities or groups
of equities that the portfolio managers believe will provide long term
capital appreciation. The Fund will normally invest at least 80% of its
net assets (plus borrowings for investment purposes) in stocks included
in the Russell 1000 Index and ETFs that primarily invest in stocks in
the Russell 1000 Index. The Fund purchases securities that the Fund's
sub-adviser, ClearBridge Investments, LLC (``Sub-Adviser''), believes
are undervalued, and sells short securities that it believes are
overvalued.
3. ClearBridge Mid Cap Growth ETF
    The ClearBridge Mid Cap Growth ETF will seek long-term growth of
capital. The Fund will seek to achieve its investment objective by
investing primarily in U.S. exchange-listed, publicly traded equity and
equity-related securities of U.S. companies or other instruments with
similar economic characteristics. The Fund may invest in securities of
issuers of any market capitalization.
4. ClearBridge Select ETF
    The ClearBridge Select ETF will seek to provide long-term growth of
capital. The Fund will seek to achieve its investment objective by
investing primarily in U.S. exchange-listed, publicly traded equity and
equity-related securities of U.S. companies or other instruments with
similar economic characteristics. The Fund may invest in securities of
issuers of any market capitalization.

5. ClearBridge All Cap Value ETF
    The ClearBridge All Cap Value ETF will seek long-term capital
growth with current income as a secondary consideration. The Fund will
seek to achieve its investment objective by investing primarily in
common stocks and common stock equivalents, such as preferred stocks
and securities convertible into common stocks, of companies the Sub-
Adviser believes are undervalued in the marketplace. The Fund may
invest up to 25% of its net assets in equity securities of foreign
issuers through U.S. exchange-listed depositary receipts.
6. Other Investments
    According to the Exchange, while each Fund, under normal market
conditions, will invest primarily in U.S. exchange-listed securities,
as described above, each Fund may invest its remaining assets in other
securities and financial instruments as follows: (i) Repurchase
agreements; \11\ (ii) warrants, rights, and options (limited to 5% of
total assets); (iii) cash or cash equivalents; \12\ and (iv) other
investment companies (including money market funds).
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    \11\ The Exchange states that it will be the policy of the Trust
to enter into repurchase agreements only with recognized securities
dealers, banks, and the Fixed Income Clearing Corporation.
    \12\ The Exchange states that for purposes of the filing, cash
equivalents include short-term instruments (instruments with
maturities of less than 3 months) of the following types: (i) U.S.
Government securities, including bills, notes and bonds differing as
to maturity and rates of interest, which are either issued or
guaranteed by the U.S. Treasury or by U.S. Government agencies or
instrumentalities; (ii) certificates of deposit issued against funds
deposited in a bank or savings and loan association; (iii) bankers'
acceptances, which are short-term credit instruments used to finance
commercial transactions; (iv) repurchase agreements and reverse
repurchase agreements; (v) bank time deposits, which are monies kept
on deposit with banks or savings and loan associations for a stated
period of time at a fixed rate of interest; (vi) commercial paper,
which are short-term unsecured promissory notes; and (vii) money
market funds.
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7. Investment Restrictions
    Each Fund may invest up to an aggregate amount of 15% of its net
assets in illiquid assets (calculated at the time of investment),\13\
consistent with Commission guidance. Each Fund will monitor its
portfolio liquidity on an ongoing basis to determine whether, in light
of current circumstances, an adequate level of liquidity is being
maintained, and will consider taking appropriate steps in order to
maintain adequate liquidity if, through a change in values, net assets,
or other circumstances, more than 15% of a Fund's net assets are
invested in illiquid assets. Illiquid assets include securities subject
to contractual or other restrictions on resale and other instruments
that lack readily available markets as determined in accordance with
Commission staff guidance.
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    \13\ In reaching liquidity decisions, the investment adviser to
the Trust, Precidian Funds LLC (``Adviser''), may consider the
following factors: The frequency of trades and quotes for the
security; the number of dealers wishing to purchase or sell the
security and the number of other potential purchasers; dealer
undertakings to make a market in the security; and the nature of the
security and the nature of the marketplace in which it trades (e.g.,
the time needed to dispose of the security, the method of soliciting
offers and the mechanics of transfer).
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    The Funds will not invest in securities listed on non-U.S.
exchanges. The Funds also will not invest in futures, forwards, or
swaps. Further, each Fund's investments will be consistent with its
investment objective and will not be used to enhance leverage. While a
Fund may invest in inverse ETFs, a Fund will not invest in leveraged
(e.g., 2X, -2X, 3X or -3X) ETFs.

B. Key Features of Managed Portfolio Shares

    While Investment Companies issuing Managed Portfolio Shares would
be actively-managed, and in that respect would be similar to those
issuing Managed Fund Shares,\14\ Managed Portfolio Shares would differ
from Managed Fund Shares in the following respects.
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    \14\ Managed Fund Shares are shares of actively-managed
Investment Companies listed and traded under Rule 14.11(i).
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     First, issues of Managed Fund Shares are required to
disseminate their ``Disclosed Portfolio'' at least once daily.\15\ By
contrast, the portfolio for an issue of Managed Portfolio Shares would
be disclosed only quarterly.\16\
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    \15\ Rule 14.11(i)(3)(B) defines the term ``Disclosed
Portfolio'' as the identities and quantities of the securities and
other assets held by the Investment Company that will form the basis
for the Investment Company's calculation of NAV at the end of the
business day. Rule 14.11(i)(4)(B)(ii)(a) requires that, for Managed
Fund Shares, the Disclosed Portfolio will be disseminated at least
once daily and will be made available to all market participants at
the same time.
    \16\ The Exchange states that the portfolio for an issue of
Managed Portfolio Shares would be disclosed quarterly in accordance
with normal disclosure requirements otherwise applicable to open-end
investment companies registered under the Investment Company Act of
1940 (``1940 Act'').
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     Second, in connection with the redemption of shares in
``Redemption Unit'' size, the delivery of any portfolio securities in
kind would be effected through a Confidential Account for the benefit
of the redeeming authorized participant without disclosing the identity
of the securities to the authorized participant.
     Third, for each series of Managed Portfolio Shares, a
Verified Intraday Indicative Value (``VIIV'') would be disseminated by
one or more major market data vendors at least every second during the
Exchange's Regular Trading Hours (normally, 9:30 a.m. to 4:00 p.m.,
Eastern Time (``E.T.'')).\17\ The Exchange states that dissemination of
the VIIV will allow investors to determine the estimated intra-day
value of the underlying portfolio of a series of Managed Portfolio
Shares and will provide a close estimate of that value throughout the
trading day.\18\
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    \17\ Proposed Rule 14.11(k)(3)(B) defines the VIIV as the
estimated indicative value of a Managed Portfolio Share based on all
of the issuer's holdings as of the close of business on the prior
business day, priced and disseminated in at least one second
intervals, and subject to validation by a pricing verification agent
of the Investment Company that is responsible for comparing multiple
independent pricing sources to establish the accuracy of the VIIV.
    \18\ According to the Exchange, the VIIV should not be viewed as
a ``real-time'' update of the NAV per Share of each Fund, because
the VIIV may not be calculated in the same manner as the NAV, which
will be computed once a day, generally at the end of the business
day.
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C. Arbitrage of Managed Portfolio Shares

    The Exchange asserts that market makers will be able to make
efficient and liquid markets priced near the VIIV, as long as a VIIV is
disseminated at least every second, market makers have knowledge of a
Fund's means of achieving its investment objective, and market makers
are permitted to engage in ``bona fide arbitrage,'' as described below.
According to the Exchange, market makers would employ bona fide
arbitrage in addition to risk-management techniques such as
``statistical arbitrage,'' \19\ which the Exchange states is currently
used throughout the financial services industry, to make efficient
markets in ETFs.
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    \19\ According to the Exchange, statistical arbitrage enables a
trader to construct an accurate proxy for another instrument,
allowing the trader to hedge the other instrument or buy or sell the
instrument when it is cheap or expensive in relation to the proxy.
Statistical analysis permits traders to discover correlations based
purely on trading data without regard to other fundamental drivers.
These correlations are a function of differentials, over time,
between one instrument or group of instruments and one or more other
instruments. Once the nature of these price deviations has been
quantified, a universe of securities is searched in an effort to, in
the case of a hedging strategy, minimize the differential. Once a
suitable hedging proxy has been identified, a trader can minimize
portfolio risk by executing the hedging basket. The trader then can
monitor the performance of this hedge throughout the trade period
making correction where warranted.
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    According to the Exchange, if an authorized participant believes
that Shares of a Fund are trading at a price

that is higher than the value of the underlying portfolio--for example,
if the market price for the Shares is higher than the VIIV--then the
authorized participant may sell Shares of the Fund short and instruct
its ``Trusted Agent'' \20\ to buy portfolio securities for its
Confidential Account. When the market price of the Shares falls in line
with the value of the portfolio, the authorized participant can then
close out its positions in both the Shares and the portfolio
securities. According to the Exchange, the authorized participant's
purchase of the portfolio securities into its Confidential Account,
combined with the sale of Shares, may create downward pressure on the
price of Shares and/or upward pressure on the price of the portfolio
securities, bringing the market price of Shares and the value of a
Fund's portfolio securities closer together. Similarly, according to
the Exchange, an authorized participant could buy Shares and instruct
the Trusted Agent to sell the underlying portfolio securities from its
Confidential Account in an attempt to profit when a Fund's Shares are
trading at a discount to its portfolio. According to the Exchange, the
authorized participant's purchase of a Fund's Shares in the secondary
market, combined with the sale of the portfolio securities from its
Confidential Account, may create upward pressure on the price of Shares
and/or downward pressure on the price of portfolio securities, driving
the market price of Shares and the value of a Fund's portfolio
securities closer together. The Exchange states that, according to the
Adviser, this process is identical to how many authorized participants
currently arbitrage existing traditional ETFs, except for the use of
the Confidential Account.
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    \20\ Proposed Rule 14.11(k)(2)(D) requires that authorized
participants redeeming Managed Portfolio Shares sign an agreement
with an agent (``Trusted Agent'') to establish a Confidential
Account, for the benefit of such authorized participant, that will
receive all consideration from the issuer in a redemption. A Trusted
Agent may not disclose the consideration received in a redemption
except as required by law or as provided in the Investment Company's
Form N-1A, as applicable.
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    According to the Exchange, a market participant that is not an
authorized participant would also be able to establish a Confidential
Account and could engage in arbitrage activity without using the
creation or redemption processes described above. The Exchange states
that if such a market participant believes that a Fund is overvalued
relative to its underlying assets, the market participant could sell
Shares short and instruct its Trusted Agent to buy portfolio securities
in its Confidential Account, wait for the trading prices to move toward
parity, and then close out the positions in both the Shares and the
portfolio securities to realize a profit from the relative movement of
their trading prices. Similarly, according to the Exchange, a market
participant could buy Shares and instruct the Trusted Agent to sell the
underlying portfolio securities in an attempt to profit when a Fund's
Shares are trading at a discount to a Fund's underlying or reference
assets.

D. The Creation and Redemption Procedures

    The Exchange states that, generally, Shares will be purchased and
redeemed on an in-kind basis. Accordingly, except where the purchase or
redemption will include cash under the circumstances described in the
applicable Fund's registration statement, purchasers will be required
to purchase ``Creation Units'' by making an in-kind deposit of
specified instruments (``Deposit Instruments''), and shareholders
redeeming their Shares will receive an in-kind transfer of specified
instruments (``Redemption Instruments''). On any given business day,
the names and quantities of the instruments that constitute the Deposit
Instruments and the names and quantities of the instruments that
constitute the Redemption Instruments will be identical, and these
instruments may be referred to, in the case of either a purchase or a
redemption, as the ``Creation Basket.''
    In the case of a redemption, a Fund's custodian (``Custodian'')
will typically deliver securities to the Confidential Account on a pro
rata basis with a value approximately equal to the value of the Shares
tendered for redemption at the redemption order cut-off time
established by the Fund. The Custodian will make delivery of the
securities by appropriate entries on its books and records transferring
ownership of the securities to the authorized participant's
Confidential Account, subject to delivery of the Shares redeemed. The
Trusted Agent of the Confidential Account will in turn liquidate,
hedge, or otherwise manage the securities based on instructions from
the authorized participant.\21\
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    \21\ The Exchange represents that an authorized participant will
issue execution instructions to the Trusted Agent and be responsible
for all associated profit or losses. Like a traditional ETF, the
authorized participant has the ability to sell the basket securities
at any point during normal trading hours.
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    If the Trusted Agent is instructed to sell all securities received
at the close on the redemption date, the Trusted Agent will pay the
liquidation proceeds net of expenses, plus or minus any cash balancing
amount, to the authorized participant through DTC.\22\ The redemption
securities that the Confidential Account receives are expected to
mirror the portfolio holdings of a Fund pro rata.
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    \22\ According to the Exchange, under applicable provisions of
the Internal Revenue Code, the authorized participant is expected to
be deemed a ``substantial owner'' of the Confidential Account
because it receives distributions from the Confidential Account. As
a result, the Exchange states, all income, gain, or loss realized by
the Confidential Account will be directly attributed to the
authorized participant. The Exchange also states that, in a
redemption, the authorized participant will have a basis in the
distributed securities equal to the fair market value at the time of
the distribution, and any gain or loss realized on the sale of those
Shares will be taxable income to the authorized participant.
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E. Availability of Information

    Each Fund will be required to file with the Commission its complete
portfolio schedules for the second and fourth fiscal quarters on Form
N-CSR under the 1940 Act, and to file its complete portfolio schedules
for the first and third fiscal quarters on Form N-Q under the 1940 Act,
within 60 days of the end of the quarter. Form N-Q requires funds to
file the same schedules of investments that are required in annual and
semi-annual reports to shareholders. The Trust's SAI and each Fund's
shareholder reports will be available free upon request from the Trust.
These documents and forms may be viewed on-screen or downloaded from
the Commission's Web site at www.sec.gov.
    In addition, the VIIV will be widely disseminated by one or more
major market data vendors at least every second during the Regular
Trading Hours.\23\ According to the Exchange, the VIIV will include all
accrued income and expenses of a Fund and will assure that any
extraordinary expenses, booked during the day, which would be taken
into account in calculating a Fund's NAV for that day, are also taken
into account in calculating the VIIV.
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    \23\ The Exchange states that it will disseminate the VIIV for
each Fund in at least one-second intervals during Regular Trading
Hours, through the facilities of the Consolidated Tape Association.
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    For purposes of the VIIV, securities held by a Fund will generally
be valued throughout the day based on the mid-point between the
disseminated current national best bid and offer. According to the
Exchange, by utilizing the mid-point pricing for purposes of VIIV
calculation, stale prices are eliminated and more accurate
representation of the real-time value of the underlying securities is
provided to the market. Specifically,

according to the Exchange, quotations based on the mid-point of bid/ask
spreads more accurately reflect current market sentiment by providing
real time information on where market participants are willing to buy
or sell securities at that point in time. The Exchange also believes
that the use of quotations will dampen the impact of any momentary
spikes in the price of a portfolio security.
    According to the Exchange, each Fund will utilize two independent
pricing sources to provide two independent sources of pricing
information. Each Fund will also utilize a ``Pricing Verification
Agent'' and establish a computer-based protocol that will permit the
Pricing Verification Agent to continuously compare the two data streams
from the independent pricing sources on a real time basis.\24\ A single
VIIV will be disseminated publicly for each Fund; however, the Pricing
Verification Agent will continuously compare the public VIIV against a
non-public alternative intra-day indicative value to which the Pricing
Verification Agent has access. If it becomes apparent that there is a
material discrepancy between the two data streams, the Exchange will be
notified and have the ability to halt trading in a Fund until the
discrepancy is resolved.\25\ Each Fund's board of directors will review
the procedures used to calculate the VIIV and maintain its accuracy as
appropriate, but not less than annually. The specific methodology for
calculating the VIIV will be disclosed on each Fund's Web site.
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    \24\ A Fund's Custodian will provide, on a daily basis, the
constituent basket file comprised of all securities plus any cash to
the independent pricing agent(s) for purposes of pricing.
    \25\ Proposed Rule 14.11(k)(4)(B)(iii) provides that, upon
notification to the Exchange by the Investment Company or its agent
that (i) the prices from the multiple independent pricing sources to
be validated by the Investment Company's Pricing Verification Agent
differ by more than 25 basis points for 60 seconds in connection
with pricing of the VIIV, or (ii) the VIIV of a series of Managed
Portfolio Shares is not being priced and disseminated in at least
one-second intervals, as required, the Exchange will halt trading in
the Managed Portfolio Shares as soon as practicable. The halt in
trading would continue until the Investment Company or its agent
notifies the Exchange that the prices from the independent pricing
sources no longer differ by more than 25 basis points for 60 seconds
or that the VIIV is being priced and disseminated as required. The
Investment Company or its agent would be responsible for monitoring
that the VIIV is being priced and disseminated as required and
whether the prices to be validated from multiple independent pricing
sources differ by more than 25 basis points for 60 seconds.
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F. Surveillance

    The Exchange represents that trading of the Shares will be subject
to its surveillance procedures for derivative products. The Exchange
believes that its surveillance procedures are adequate to properly
monitor the trading of the Shares on the Exchange during all trading
sessions and to deter and detect violations of Exchange rules and the
applicable federal securities laws.\26\
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    \26\ The Exchange represents that the Exchange or FINRA, on
behalf of the Exchange, or both, will communicate as needed
regarding trading in the Shares, underlying stocks, ETFs, and
exchange-listed options 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 such securities from such markets and
other entities. In addition, the Exchange may obtain information
regarding trading in the Shares, underlying stocks, ETFs and
exchange-listed options from markets and other entities that are
members of ISG or with which the Exchange has in place a
comprehensive surveillance sharing agreement.
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    The Exchange represents that the Funds' Adviser will make available
daily to FINRA and the Exchange the portfolio holdings of each Fund in
order to facilitate the performance of the surveillances referred to
above. In addition, the Exchange states that it has a general policy
prohibiting the distribution of material, non-public information by its
employees.

II. Summary of Comment Letters

    The Commission has received four comment letters on the proposed
rule change, each of which expresses opposition to the proposed rule
change.\27\ As of the date of this order instituting proceedings, the
Exchange has not submitted a response to the comments.
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    \27\ See supra note 6.
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    A. Gastineau Letter.\28\ The commenter opposes approval of the
proposed rule change and recommends imposition of a number of
requirements in the event the proposed rule change and exemptive
application are approved. As an initial matter, the commenter believes
that the proposed selective disclosure of Fund portfolio holdings
information to Trusted Agents trading on behalf of Confidential Account
holders would constitute insider trading and would violate federal
securities laws.
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    \28\ The Gastineau Letter is available at: https://www.sec.gov/comments/sr-batsbzx-2017-30/batsbzx201730-1852499-155333.pdf.
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    In addition, the commenter asserts that market makers will face
significant impediments to successfully arbitrage the Shares and
predicts that this will lead to the Shares trading at wider bid-ask
spreads and more variable premiums/discounts than actively-managed ETFs
available today. First, the commenter questions the Exchange's
assertion that the VIIV will provide an adequate basis for ensuring a
Fund's ongoing price value alignment and secondary market trading
efficiency. In evaluating the Exchange's statements regarding VIIVs,
the commenter asserts that their utility should be compared not to the
intraday indicative values (``IIVs'') of existing ETFs but rather to
the independently derived, real-time estimates of underlying fund value
that ETF market makers use today to identify arbitrage opportunities
and manage their risks (``MM IIVs''). The commenter asserts that,
because existing actively-managed ETFs (and most index ETFs) provide
full daily disclosure of their current portfolio, market makers of
transparent funds have access to far better information about the
current value of fund holdings than the proposed VIIVs would provide.
Moreover, the commenter asserts that VIIVs will be significantly less
precise than MM IIVs. The commenter also asserts that MM IIVs include
significant information that would not be reflected in VIIVs, noting as
follows:
     In calculating VIIVs, Fund securities would be valued
based on the mid-point between the current national best bid and offer
quotations. The commenter characterizes the bid-ask midpoint as a
``fairly crude valuation metric'' that does not capture important
trading information incorporated into MM IIVs, such as the current bid-
ask spread, the depth of the current order book on the bid and offer
side of the market, and the predominance of current trading between
bid-side and offer-side transactions.\29\
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    \29\ The commenter also states that the use of bid-ask midpoints
can result in flawed intraday valuations for funds holding thinly-
traded stocks, and that bid-ask midpoints may reflect prices at
which no trading is permitted.
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     VIIVs would be disseminated at least every second, while
internal valuations used by market makers update continuously (often at
frequencies higher than once per second) and may be reflected in MM
IIVs with less time lag.
     The VIIV verification process would leave significant room
for dissemination of erroneous values. In particular, a Fund's Pricing
Verification Agent would take no action to address observed
discrepancies in VIIV input prices until the calculated Fund values
differ by at least 25 bps for 60 seconds. The commenter characterizes
that disparity as ``huge,'' asserting that it would be

wider than the customary bid-ask spread of most domestic equity
ETFs.\30\
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    \30\ This commenter also expresses concern that if trading in a
Fund's Shares is frequently interrupted by trading halts, there
could be severe damage to the Fund's ongoing liquidity and trading
efficiency. Moreover, the commenter states that the proposal does
not address the treatment of erroneous Fund Share trades resulting
from faulty VIIVs.
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     The VIIV process would not address all potential intraday
valuation errors. The commenter notes that if the constituent basket
file for a Fund includes material inaccuracies, the VIIVs would be
erroneous. The commenter also describes that market makers would not be
able to verify that corporate actions are appropriately reflected in a
Fund's VIIVs because of the non-transparent portfolio.
     The process for adjusting VIIVs in the event of trading
halts in portfolio securities is cumbersome and likely to result in
errors in disseminated VIIVs. The commenter states that, throughout
this process, which may be protracted, the Fund would continue to
disseminate VIIVs that do not reflect fair values of the halted
security, and therefore may vary significantly from the Fund's true
underlying value at that time. The commenter asserts that the internal
valuation process of any existing ETF's market makers would almost
certainly arrive at a fair estimate of a Fund's current underlying
value far faster than the VIIV adjustment process.
    The commenter asserts that reliance on faulty VIIVs may expose
market makers to unrecoverable losses, noting that: (1) No liability
for the timeliness and accuracy of the VIIVs appears to rest with the
Exchange, its agents, or the Reporting Authority; and (2) the
circumstances under which the independent pricing sources and the
Pricing Verification Agent are legally liable for such issues are
limited. According to the commenter, market makers' forced reliance on
VIIVs to determine intraday Fund valuations is a source of significant
incremental risk for them versus making markets in existing ETFs. The
commenter predicts that this will result in the Shares trading at wider
bid-ask spreads and more variable premiums and discounts to NAV than
similar existing ETFs.\31\
---------------------------------------------------------------------------

    \31\ The commenter also expresses concerns with respect to VIIV-
related costs and liabilities for the Funds.
---------------------------------------------------------------------------

    The commenter also criticizes the Confidential Accounts structure.
The commenter asserts that, compared to the usual manner in which
market makers in existing ETFs engage in arbitrage and buy and sell
creation basket instruments, the Confidential Accounts arrangement
exposes market makers to significant additional costs, risks, and lost
opportunities, including:
     Less control over trade execution and trade order
management when implementing portfolio hedging and Creation Unit
instrument transactions, which will result in more cost and risk, and
less profit opportunity.
     No ability for market makers to use their market knowledge
and their positions in other securities to enhance arbitrage profits
and minimize costs.
     Reduced incentive for third-party service providers to
trade expeditiously and with low market impact.
     Little or no ability for market makers to monitor trading
in Confidential Accounts to ensure best execution or to evaluate
trading performance.
     Forced pro rata hedging, which is very often not the best
hedge. Sub-optimal hedging results in less efficient arbitrage.
     Given the more-involved routing of trade instructions and
trade orders that the Confidential Account structure would necessitate,
hedging and Creation Unit instrument transactions through Confident
Accounts will almost certainly take longer, on average, for a market
maker to execute than similar transactions that the market maker
executes internally. Slower executions may translate into less
efficient arbitrage.
     Potentially significant explicit costs to establish and
maintain Confidential Accounts.
    Additionally, the commenter questions the Exchange's statements
regarding the efficiency and utility of statistical arbitrage. The
commenter states that while market makers may be able to gain some
useful information about a Fund's current composition by knowing the
Fund's investment objective and tracking performance correlations over
time versus a known index, the amount of portfolio information that can
be gleaned using this approach is limited. The commenter states that,
as a result, any portfolio hedge constructed using this information
would be subject to meaningful basis risk, especially during times of
market stress or volatility.
    The commenter expresses concerns regarding data security, and the
misappropriation and misuse of a Fund's confidential portfolio
information, in light of the dissemination of this information across a
potentially broad network of Trusted Agents, affiliated broker-dealers,
and other Confidential Account service providers. The commenter also
raises concerns regarding the possibility that market participants
could reverse-engineer the Funds' portfolio holdings, subjecting the
Funds to the dilutive effects of front-running. The commenter asserts
that ``it is far from a settled question that the Funds would not ever
be susceptible to reverse engineering.''
    Moreover, the commenter raises concerns regarding the ability of
the Funds, the authorized participants, and the non-authorized
participant market makers, to comply with various laws, rules, and
regulations. In addition, the commenter recommends certain limitations
on the permitted investments of the Funds, and recommends the
availability of certain information.
    B. Broms Letter.\32\ The commenter opposes the proposed rule
change. The commenter asserts that the proposed selective disclosure of
confidential Fund holdings information to Trusted Agents for trading on
behalf of Confidential Account holders would violate federal securities
laws. In addition, the commenter believes that the mechanism for
ensuring secondary market trading efficiency in the Shares is
``unreliable'' and predicts that the Shares will likely trade at
significantly wider bid-ask spreads and/or more variable premiums/
discounts than existing ETFs. The commenter also expresses concerns
regarding the following:
---------------------------------------------------------------------------

    \32\ The Broms Letter is available at: https://www.sec.gov/comments/sr-batsbzx-2017-30/batsbzx201730-1842158-155104.pdf.
---------------------------------------------------------------------------

     The likelihood that the Shares' trading performance will
be especially poor during periods of market stress and volatility.
     The ability to ensure the security of confidential Fund
information disseminated to Trusted Agents, their affiliates, and
service providers.
     Potentially significant added Fund costs and risks
associated with calculating, verifying, and disseminating the VIIV and
associated Fund warranties.
     The potential for frequent Share trading halts.
     The likely incidence of erroneous Share trades and the
absence of an Exchange program to detect and remedy such trades.
     The potential for reverse engineering of a Fund's
portfolio holdings.
     The tax risk due to the Funds' distinctive in-kind
redemption program.
     The costs, risks, and uncertainties to broker-dealers
serving as authorized participants and non-authorized participant
market makers in meeting their compliance obligations with respect to
securities traded on their behalf through Confidential Accounts.

    C. Angel Letter.\33\ The commenter opposes the proposal. The
commenter believes that the opaque nature of the products and the
inability of arbitrageurs to closely monitor execution quality will
make arbitrage more difficult and the added costs and risks will lead
to wider deviations of the market price from the underlying asset
value. In addition, the commenter raises concerns that the Funds may
fare worse than traditional ETFs during times of market disruption
given their opacity and the complexity of the arbitrage relationship
between the Funds and the underlying securities. The commenter also
expresses concern that selective disclosure of portfolio information
could raise issues under Regulation FD and that the use of Confidential
Accounts could raise issues under Regulation SHO.
---------------------------------------------------------------------------

    \33\ The Angel Letter is available at: https://www.sec.gov/comments/sr-batsbzx-2017-30/batsbzx201730-1843677-155109.pdf.
---------------------------------------------------------------------------

    In addition, the commenter expresses the following concerns:
     It is unclear whether a firm's risk management would have
access to the contents of Confidential Accounts. If a firm's risk
management does not have access to such information, the firm would be
subject to too much risk, but if the firm's risk management does have
access, information barriers would create compliance complexities.
     Positions held in the Confidential Account not closed out
by the end of the day would have to be settled, and the settlement
information would be available to settlement personnel.
     The Trusted Agents would have serious compliance burdens,
and these burdens could drive up the cost of being a Trusted Agent,
which would drive up the cost of arbitrage. Higher costs and compliance
risks would severely limit the number of firms willing to take on the
burden of becoming Trusted Agents, and less competition could lead to
higher fees and inferior service. In the event that there were many
Trusted Agents, the likelihood of data breaches would increase.
    In addition, the commenter believes that the VIIV calculations are
dangerously flawed because they rely on sometimes flawed bid-ask
quotes. The commenter believes that the VIIV should instead be based on
the last trade, and if the underlying market is closed or the
underlying asset has not traded recently, then a reasonable fair value
methodology should be used.\34\
---------------------------------------------------------------------------

    \34\ The commenter also states that VIIVs should be disseminated
over the standard consolidated feeds, not specialized feeds, such
that they are widely available to all investors.
---------------------------------------------------------------------------

    Moreover, the commenter states that the proposed Funds are very
different from ETFs and should not be labeled or approved as ETFs.
    D. Norman Letter.\35\ The commenter opposes the proposed rule
change. The commenter refutes the Trust's statistical analysis that
purports to demonstrate that the Funds' portfolio compositions could
not be reverse engineered.\36\ The commenter's analysis concludes that
reverse engineering of a Fund's portfolio is in fact ``achievable with
a substantial degree of accuracy.'' \37\ The commenter also asserts
that, without knowledge of a Fund's underlying stocks, market makers
may be unable to hedge their risks, which would result in wider and
more persistent spreads or the market maker choosing not to make a
market in the Shares. In addition, the commenter questions the
sufficiency of disseminating the VIIV at one-second intervals, given
that high frequency trading takes place in milliseconds, and raises
concerns about potential systems failures that may disrupt the
dissemination of VIIV. Finally, the commenter believes that selective
disclosure of portfolio information to Trusted Agents would violate
federal securities laws, and expresses concern regarding the security
of confidential portfolio information.
---------------------------------------------------------------------------

    \35\ The Norman Letter is available at: https://www.sec.gov/comments/sr-batsbzx-2017-30/batsbzx201730-2161995-157800.pdf.
    \36\ See Third Amended and Restated Application for an Order for
exemptions from various provisions of the 1940 Act and rules
thereunder (File No. 812-14405), dated May 2, 2017, at Exhibit E
(``Additional Research on the Ability to Reverse Engineer the
Proposed Precidian ETF,'' by Ricky Alyn Cooper, Ph.D., dated August
2015).
    \37\ See Norman Letter, Appendix One (``The Reverse Engineering
of Portfolio Compositions,'' by Dr. Anthony Hayter, dated July 17,
2017).
---------------------------------------------------------------------------

III. Proceedings To Determine Whether To Approve or Disapprove SR-
BatsBZX-2017-30 and Grounds for Disapproval Under Consideration

    The Commission is instituting proceedings pursuant to Section
19(b)(2)(B) of the Act \38\ to determine whether the proposed rule
change should be approved or disapproved. Institution of such
proceedings is appropriate at this time in view of the legal and policy
issues raised by the proposed rule change. Institution of proceedings
does not indicate that the Commission has reached any conclusions with
respect to any of the issues involved. Rather, as described below, the
Commission seeks and encourages interested persons to provide comments
on the proposed rule change.
---------------------------------------------------------------------------

    \38\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------

    Pursuant to Section 19(b)(2)(B) of the Act,\39\ the Commission is
providing notice of the grounds for disapproval under consideration.
The Commission is instituting proceedings to allow for additional
analysis of the proposed rule change's consistency with Section 6(b)(5)
of the Act, 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.'' \40\
---------------------------------------------------------------------------

    \39\ Id.
    \40\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

IV. Procedure: Request for Written Comments

    The Commission requests that interested persons provide written
submissions of their views, data, and arguments with respect to the
issues identified above, as well as any other concerns they may have
with the proposal. In particular, the Commission invites the written
views of interested persons concerning whether the proposal is
consistent with Section 6(b)(5) or any other provision of the Act, or
the rules and regulations thereunder. Although there do not appear to
be any issues relevant to approval or disapproval that would be
facilitated by an oral presentation of views, data, and arguments, the
Commission will consider, pursuant to Rule 19b-4, any request for an
opportunity to make an oral presentation.\41\
---------------------------------------------------------------------------

    \41\ Section 19(b)(2) of the Act, as amended by the Securities
Acts Amendments of 1975, Public Law 94-29 (June 4, 1975), grants the
Commission flexibility to determine what type of proceeding--either
oral or notice and opportunity for written comments--is appropriate
for consideration of a particular proposal by a self-regulatory
organization. See Securities Acts Amendments of 1975, Senate Comm.
on Banking, Housing & Urban Affairs, S. Rep. No. 75, 94th Cong., 1st
Sess. 30 (1975).
---------------------------------------------------------------------------

    Interested persons are invited to submit written data, views, and
arguments regarding whether the proposal should be approved or
disapproved by October 10, 2017. Any person who wishes to file a
rebuttal to any other person's submission must file that rebuttal by
October 23, 2017.
    The Commission asks that commenters address the sufficiency of the
Exchange's statements in support of the proposal, which are set forth
in the Notice,\42\ in addition to any other

comments they may wish to submit about the proposed rule change.
Specifically, the Commission seeks comment on the statements of the
Exchange contained in the Notice, the issues raised by the commenters,
and any other issues raised by the proposed rule change. In addition,
the Commission seeks comment on whether the trading of the Shares would
be consistent with the maintenance of fair and orderly markets. In this
regard, the Commission specifically seeks comment regarding market
makers' ability to make markets in the Shares and the sufficiency of
the proposed VIIV as pricing information to market participants.
Further, the Commission solicits comments on whether the selective
disclosure of portfolio holdings to a Trusted Agent, as well as the
non-transparent structure of the Funds, could result in any information
asymmetry that would be inconsistent with the Act or other federal
securities laws or rules and regulations thereunder.
---------------------------------------------------------------------------

    \42\ See supra note 3.
---------------------------------------------------------------------------

    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-BatsBZX-2017-30 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-BatsBZX-2017-30. 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 the filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; 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-BatsBZX-2017-30 and should
be submitted on or before October 10, 2017. Rebuttal comments should be
submitted by October 23, 2017.
---------------------------------------------------------------------------

    \43\ 17 CFR 200.30-3(a)(57).

For the Commission, by the Division of Trading and Markets, pursuant
to delegated authority.\43\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-19808 Filed 9-15-17; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 76, Number 123 (Monday, June 27, 2011)]
[Notices]
[Page 37360]
[FR Doc No: 2011-16025]

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DEPARTMENT OF HOMELAND SECURITY

Federal Emergency Management Agency

[Internal Agency Docket No. FEMA-1989-DR; Docket ID FEMA-2011-0001]

Oklahoma; Amendment No. 1 to Notice of a Major Disaster
Declaration

AGENCY: Federal Emergency Management Agency, DHS.

ACTION: Notice.

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

SUMMARY: This notice amends the notice of a major disaster declaration
for the State of Oklahoma (FEMA-1989-DR), dated June 6, 2011, and
related determinations.

DATES: Effective Date: June 16, 2011.

FOR FURTHER INFORMATION CONTACT: Peggy Miller, Office of Response and
Recovery, Federal Emergency Management Agency, 500 C Street, SW.,
Washington, DC 20472,<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: The notice of a major disaster declaration
for the State of Oklahoma is hereby amended to include the following
area among those areas determined to have been adversely affected by
the event declared a major disaster by the President in his declaration
of June 6, 2011.

    Caddo County for Individual Assistance.

    The following Catalog of Federal Domestic Assistance Numbers
(CFDA) are to be used for reporting and drawing funds: 97.030,
Community Disaster Loans; 97.031, Cora Brown Fund; 97.032, Crisis
Counseling; 97.033, Disaster Legal Services; 97.034, Disaster
Unemployment Assistance (DUA); 97.046, Fire Management Assistance
Grant; 97.048, Disaster Housing Assistance to Individuals and
Households in Presidentially Declared Disaster Areas; 97.049,
Presidentially Declared Disaster Assistance--Disaster Housing
Operations for Individuals and Households; 97.050, Presidentially
Declared Disaster Assistance to Individuals and Households--Other
Needs; 97.036, Disaster Grants--Public Assistance (Presidentially
Declared Disasters); 97.039, Hazard Mitigation Grant.

W. Craig Fugate,
Administrator, Federal Emergency Management Agency.
[FR Doc. 2011-16025 Filed 6-24-11; 8:45 am]
BILLING CODE 9111-23-P


[Federal Register Volume 76, Number 18 (Thursday, January 27, 2011)]
[Notices]
[Pages 4963-4965]
[FR Doc No: 2011-1728]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-63753; File No. SR-NYSEArca-2010-110]

Self-Regulatory Organizations; NYSE Arca, Inc.; Order Approving a
Proposed Rule Change To List and Trade Shares of the Teucrium Natural
Gas Fund

January 21, 2011.

I. Introduction

    On December 3, 2010, NYSE Arca, Inc. (``Exchange'' or ``NYSE
Arca'') 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 Teucrium Natural
Gas Fund under NYSE Arca Equities Rule 8.200. The proposed rule change
was published for comment in the Federal Register on December 15,
2010.\3\ The Commission received no comments on the proposal. This
order approves the proposed rule change.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 63493 (December 9,
2010), 75 FR 78290 (``Notice'').
---------------------------------------------------------------------------

II. Description of the Proposal

    The Exchange proposes to list and trade shares (``Shares'') of the
Teucrium Natural Gas Fund (``Fund'') pursuant to NYSE Arca Equities
Rule 8.200. NYSE Arca Equities Rule 8.200, Commentary .02, permits the
trading of Trust Issued Receipts either by listing or pursuant to
unlisted trading privileges.\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.
---------------------------------------------------------------------------

    The Shares represent beneficial ownership interests in the Fund,
which is a commodity pool that is a series of the Teucrium Commodity
Trust (``Trust''), a Delaware statutory trust.\5\ The Fund is managed
and controlled by Teucrium Trading, LLC (``Sponsor''). The Sponsor is a
Delaware limited liability company that is registered as a commodity
pool operator with the Commodity Futures Trading Commission (``CFTC'')
and is a member of the National Futures Association.
---------------------------------------------------------------------------

    \5\ See Amendment No. 1 to registration statement on Form S-1
for Teucrium Commodity Trust, dated September 7, 2010 (File No. 333-
167593) relating to the Teucrium Natural Gas Fund (``Registration
Statement'').
---------------------------------------------------------------------------

    The investment objective of the Fund is to have the daily changes
in percentage terms of the Shares' net asset value (``NAV'') reflect
the daily changes in percentage terms of a weighted average of the
following: the nearest to spot month March, April, October and November
Henry Hub Natural Gas Futures Contracts (``Natural Gas Futures
Contracts'') traded on the NYMEX, weighted 25% equally in each contract
month, less the Fund's expenses.\6\ The Sponsor employs a ``neutral''
investment strategy intended to track the changes in the Gas Benchmark
regardless of whether the Gas Benchmark goes up or down.
---------------------------------------------------------------------------

    \6\ This weighted average of the four referenced Natural Gas
Futures Contracts is referred to herein as the ``Gas Benchmark,''
and the four Natural Gas Futures Contracts that at any given time
make up the Gas Benchmark are referred to herein as the ``Gas
Benchmark Component Futures Contracts.''
---------------------------------------------------------------------------

    The Fund seeks to achieve its investment objective by investing
under normal market conditions in Gas Benchmark Component Futures
Contracts or, in certain circumstances, in other Natural Gas Futures
Contracts traded on the New York Mercantile Exchange (``NYMEX''),
Intercontinental Exchange (``ICE''), and other foreign exchanges. In
addition, and to a limited extent, the Fund will invest in natural gas-
based swap agreements that are cleared through the ICE or its
affiliated provider of clearing services (``Cleared Natural Gas
Swaps'') to the extent permitted and appropriate in light of the
liquidity in the Cleared Natural Gas Swap market. Once position limits
in Natural Gas Futures Contracts are applicable, the Fund may also
invest first in Cleared Natural Gas Swaps to the extent permitted by
the position limits applicable to Cleared Natural Gas Swaps and
appropriate in light of the liquidity in the Cleared Natural Gas Swaps
market, and then in contracts and instruments such as cash-settled
options on Natural Gas Futures Contracts and forward contracts, swaps
other than Cleared Natural Gas Swaps, and other over-the-counter
transactions that are based on the price of natural gas and Natural Gas
Futures Contracts (collectively, ``Other Natural Gas Interests'' and
together with Natural Gas Futures Contracts and Cleared Natural Gas
Swaps, ``Natural Gas Interests'').\7\
---------------------------------------------------------------------------

    \7\ The Fund will invest in Natural Gas Interests in a manner
consistent with the Fund's investment objective and not to achieve
additional leverage.
---------------------------------------------------------------------------

    The Exchange represents that the Fund will meet the initial and
continued listing requirements applicable to Trust Issued Receipts in
NYSE Arca Equities Rule 8.200 and Commentary .02 thereto. With respect
to application of Rule 10A-3 under the Act,\8\ the Trust will rely on
the exception contained in Rule 10A-3(c)(7).\9\ A minimum of 100,000
Shares will be outstanding as of the start of trading on the Exchange.
---------------------------------------------------------------------------

    \8\ 17 CFR 240.10A-3.
    \9\ 17 CFR 240.10A-3(c)(7).
---------------------------------------------------------------------------

    Additional details regarding the trading policies of the Fund,
creations and redemptions of the Shares, Natural Gas Interests and
other aspects of the natural gas and Natural Gas Interest markets,
investment risks, Benchmark performance, NAV calculation, the
dissemination and availability of information about the underlying
assets, trading halts, applicable trading rules, surveillance, and the
Information Bulletin, among other things, can be found in the Notice
and/or the Registration Statement, as applicable.\10\
---------------------------------------------------------------------------

    \10\ See supra notes 3 and 5.
---------------------------------------------------------------------------

III. Discussion and Commission's Findings

    After careful consideration, the Commission finds that the proposed
rule change to list and trade the Shares of the Fund is consistent with
the requirements of the Act and the rules and regulations thereunder
applicable to a national securities exchange.\11\ In particular, the
Commission finds that the proposed rule change is consistent with the
requirements of Section 6(b)(5) of the Act,\12\ which requires, among

other things, that the Exchange's rules be designed to prevent
fraudulent and manipulative acts and practices, to promote just and
equitable principles of trade, to foster cooperation and coordination
with persons engaged in facilitating transactions in securities, and to
remove impediments to and perfect the mechanism of a free and open
market and a national market system.
---------------------------------------------------------------------------

    \11\ In approving this proposed rule change, the Commission
notes that it has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
    \12\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Commission finds that the proposal to list and trade the Shares
on the Exchange is also consistent with Section 11A(a)(1)(C)(iii) of
the Act,\13\ which sets forth Congress's finding that it is in the
public interest and appropriate for the protection of investors and the
maintenance of fair and orderly markets to assure the availability to
brokers, dealers, and investors of information with respect to
quotations for, and transactions in, securities. Quotation and last-
sale information regarding the Shares will be disseminated through the
facilities of the Consolidated Tape Association (``CTA''), and the
Benchmark will be disseminated by one or more major market data vendors
every 15 seconds during the NYSE Arca Core Trading Session of 9:30 a.m.
to 4:00 p.m. Eastern Time (``E.T.''). In addition, the Indicative Trust
Value (``ITV'') will be disseminated on a per-Share basis by one or
more major market data vendors every 15 seconds during the NYSE Arca
Core Trading Session.\14\ The Fund will provide Web site disclosure of
portfolio holdings daily and will include, as applicable, the names,
quantity, price, and market value of Financial Instruments \15\ and the
characteristics of such instruments and cash equivalents, and amount of
cash held in the portfolio of the Fund. The closing price and
settlement prices of the Natural Gas Futures Contracts are readily
available from NYMEX, automated quotation systems, published or other
public sources, or on-line information services such as Bloomberg or
Reuters, and the spot price of natural gas also is available on a 24-
hour basis from major market data vendors. The NAV for the Fund will be
calculated by the Administrator once a day and will be disseminated
daily to all market participants at the same time, and the Web site for
the Fund (http://www.teucriumnaturalgasfund.com) and/or the Exchange
will contain the prospectus and additional data relating to NAV and
other applicable quantitative information.
---------------------------------------------------------------------------

    \13\ 15 U.S.C. 78k-1(a)(1)(C)(iii).
    \14\ The normal trading hours for Natural Gas Futures Contracts
on NYMEX are 9 a.m. to 2:30 p.m. E.T. The ITV will not be updated,
and, therefore, a static ITV will be disseminated, between the close
of trading on NYMEX of Natural Gas Futures Contracts and the close
of the NYSE Arca Core Trading Session. The value of a Share may be
influenced by non-concurrent trading hours between NYSE Arca and the
NYMEX and ICE when the Shares are traded on NYSE Arca after normal
trading hours of Natural Gas Futures Contracts on NYMEX.
    \15\ See supra note 4.
---------------------------------------------------------------------------

    The Commission further believes that the proposal to list and trade
the Shares is reasonably designed to promote fair disclosure of
information that may be necessary to price the Shares appropriately and
to prevent trading when a reasonable degree of transparency cannot be
assured. 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. Further, the Exchange represents
that it may halt trading during the day in which an interruption to the
dissemination of the ITV or the value of the underlying futures
contracts occurs. If the interruption to the dissemination of the ITV
or the value of the underlying futures contracts 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, the Web site disclosure of the portfolio composition of
the Fund will occur at the same time as the disclosure by the Sponsor
of the portfolio composition to Authorized Purchasers (as defined in
the Registration Statement) so that all market participants are
provided portfolio composition information at the same time. Therefore,
the same portfolio information will be provided on the public Web site
as well as in electronic files provided to Authorized Purchasers.
Accordingly, each investor will have access to the current portfolio
composition of the Fund through the Fund's Web site. Lastly, the
trading of the Shares will be subject to NYSE Arca Equities Rule 8.200,
Commentary .02(e), which sets forth certain restrictions on ETP Holders
\16\ acting as registered Market Makers \17\ in Trust Issued Receipts
to facilitate surveillance.
---------------------------------------------------------------------------

    \16\ See NYSE Arca Equities Rule 1.1(n) (defining ETP Holder).
    \17\ See NYSE Arca Equities Rule 1.1(u) (defining Market Maker).
---------------------------------------------------------------------------

    The Exchange has represented that the Shares are deemed equity
securities subject to the Exchange's rules governing the trading of
equity securities. In support of this proposal, the Exchange has made
representations, including the following:
    (1) The Fund will meet the initial and continued listing
requirements applicable to Trust Issued Receipts in NYSE Arca Equities
Rule 8.200 and Commentary .02 thereto.
    (2) The Exchange has appropriate rules to facilitate transactions
in the Shares during all trading sessions.
    (3) The Exchange's surveillance 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.
    (4) With respect to Fund assets traded on exchanges, not more than
10% of the weight of such assets in the aggregate shall consist of
components whose principal trading market is not a member of the
Intermarket Surveillance Group or is a market with which the Exchange
does not have a comprehensive surveillance sharing agreement.
    (5) 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: (a)
The risks involved in trading the Shares during the Opening and Late
Trading Sessions when an updated ITV will not be calculated or publicly
disseminated; (b) the procedures for purchases and redemptions of
Shares (and that Shares are not individually redeemable); (c) 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; (d) how information regarding the ITV is
disseminated; (e) 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 (f) trading information.
    (6) A minimum of 100,000 Shares will be outstanding as of the start
of trading on the Exchange.
    (7) With respect to the application of Rule 10A-3 under the Act,
the Trust will rely on the exception contained in Rule 10A-3(c)(7).\18\
---------------------------------------------------------------------------

    \18\ See supra notes 8 and 9 and accompanying text.

This approval order is based on the Exchange's representations.\19\
---------------------------------------------------------------------------

    \19\ The Commission notes that it does not regulate the market
for the futures in which the Fund plans to take positions, which is
the responsibility of the CFTC. The CFTC has the authority to set
limits on the positions that any person may take in futures on
commodities. These limits may be directly set by the CFTC, or by the
markets on which the futures are traded. The Commission has no role
in establishing position limits on futures in commodities, even
though such limits could impact a commodity-based exchange-traded
product that is under the jurisdiction of the Commission.

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

    For the foregoing reasons, the Commission finds that the proposed
rule change is consistent with the Act and the rules and regulations
thereunder applicable to a national securities exchange.

IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\20\ that the proposed rule change (SR-NYSEArca-2010-110) be, and
it hereby is, approved.
---------------------------------------------------------------------------

    \20\ 15 U.S.C. 78f(b)(2).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\21\
---------------------------------------------------------------------------

    \21\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-1728 Filed 1-26-11; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 79, Number 173 (Monday, September 8, 2014)]
[Notices]
[Pages 53247-53248]
[FR Doc No: 2014-21393]

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SECURITIES AND EXCHANGE COMMISSION

[File No. 500-1]

In the Matter of Bay Acquisition Corp. (a/k/a SecureLogic Corp.)
(n/k/a Goozex Holdings, Inc.), BTHC XV, Inc., Caleco Pharma Corp., and
CareAdvantage, Inc., Order of Suspension of Trading

September 4, 2014.
    It appears to the Securities and Exchange Commission that there is
a lack of current and accurate information concerning the securities of
Bay Acquisition Corp. (a/k/a SecureLogic Corp.) (n/k/a Goozex Holdings,
Inc.) because it has not filed any periodic reports since the period
ended September 30, 2012.
    It appears to the Securities and Exchange Commission that there is
a lack of current and accurate information concerning the securities of
BTHC XV, Inc. because it has not filed any periodic reports since the
period ended December 31, 2011.
    It appears to the Securities and Exchange Commission that there is
a lack of current and accurate information concerning the securities of
Caleco Pharma Corp. because it has not filed any periodic reports since
the period ended April 30, 2011.
    It appears to the Securities and Exchange Commission that there is
a

lack of current and accurate information concerning the securities of
CareAdvantage, Inc. because it has not filed any periodic reports since
the period ended September 30, 2011.
    The Commission is of the opinion that the public interest and the
protection of investors require a suspension of trading in the
securities of the above-listed companies. Therefore, it is ordered,
pursuant to Section 12(k) of the Securities Exchange Act of 1934, that
trading in the securities of the above-listed companies is suspended
for the period from 9:30 a.m. EDT on September 4, 2014, through 11:59
p.m. EDT on September 17, 2014.

    By the Commission.
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2014-21393 Filed 9-4-14; 4:15 pm]
BILLING CODE 8011-01-P


[Federal Register Volume 79, Number 245 (Monday, December 22, 2014)]
[Notices]
[Pages 76327-76328]
[FR Doc No: 2014-29483]

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ENVIRONMENTAL PROTECTION AGENCY

[FRL-9920-57-OEI]

Cross-Media Electronic Reporting: Authorized Program Revision
Approval, State of Minnesota

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

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SUMMARY: This notice announces EPA's approval of the State of
Minnesota's request to revise/modify certain of its EPA-authorized
programs to allow electronic reporting.

DATES: EPA's approval is effective December 22, 2014.

FOR FURTHER INFORMATION CONTACT: Karen Seeh, U.S. Environmental
Protection Agency, Office of Environmental Information, Mail Stop
2823T, 1200 Pennsylvania Avenue NW.,

Washington, DC 20460,<PHONE_NUMBER><EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: On October 13, 2005, the final Cross-Media
Electronic Reporting Rule (CROMERR) was published in the Federal
Register (70 FR 59848) and codified as part 3 of title 40 of the CFR.
CROMERR establishes electronic reporting as an acceptable regulatory
alternative to paper reporting and establishes requirements to assure
that electronic documents are as legally dependable as their paper
counterparts. Subpart D of CROMERR requires that state, tribal or local
government agencies that receive, or wish to begin receiving,
electronic reports under their EPA-authorized programs must apply to
EPA for a revision or modification of those programs and obtain EPA
approval. Subpart D provides standards for such approvals based on
consideration of the electronic document receiving systems that the
state, tribe, or local government will use to implement the electronic
reporting. Additionally, 3.1000(b) through (e) of 40 CFR part 3,
subpart D provides special procedures for program revisions and
modifications to allow electronic reporting, to be used at the option
of the state, tribe or local government in place of procedures
available under existing program-specific authorization regulations. An
application submitted under the subpart D procedures must show that the
state, tribe or local government has sufficient legal authority to
implement the electronic reporting components of the programs covered
by the application and will use electronic document receiving systems
that meet the applicable subpart D requirements. Once an authorized
program has EPA's approval to accept electronic documents under certain
programs, CROMERR 3.1000(a)(4) requires that the program keep EPA
apprised of any changes to laws, policies, or the electronic document
receiving systems that have the potential to affect the program's
compliance with CROMERR 3.2000.
    On June 24, 2014, the Minnesota Pollution Control Agency (MPCA)
submitted an amended application titled ``Minnesota Pollution Control
Agency Regulatory Services Portal'' for revisions/modifications of its
EPA-approved electronic reporting program under its EPA-authorized
programs under title 40 CFR to allow new electronic reporting. EPA
reviewed MPCA's request to revise/modify its EPA-authorized programs
and, based on this review, EPA determined that the application met the
standards for approval of authorized program revisions/modifications
set out in 40 CFR part 3, subpart D. In accordance with 40 CFR
3.1000(d), this notice of EPA's decision to approve Minnesota's request
to revise/modify its following EPA-authorized programs to allow
electronic reporting under 40 CFR parts 51, 60-61, 63, 65, 68, 70-72,
74-75, 79-80, 82, 86, 89-92, 94, 122, 262, 264-266, 268, 270, 280, and
403, is being published in the Federal Register:

Part 52--Approval and Promulgation of Implementation Plans;
Part 60--Standards of Performance for New Stationary Sources;
Part 61--National Emission Standard for Hazardous Air Pollutants;
Part 63--National Emission Standards for Hazardous Air Pollutants for
Source Categories;
Part 65--Consolidated Federal Air Rule;
Part 68--Chemical Accident Prevention Provisions;
Part 70--State Operating Permit Programs;
Part 72--Permits Regulation;
Part 74--Sulfur Dioxide OPT-INS;
Part 75--Continuous Emissions Monitoring;
Part 79--Registration of Fuels and Fuel Additives;
Part 80--Registration of Fuels and Fuel Additives;
Part 82--Protection of Stratospheric Ozone;
Part 86--Control of Emissions from New and In-Use Highway Vehicles and
Engines;
Part 89--Control of Emissions from New and In-Use Non-road Compression-
Ignition Engines;
Part 90--Control Of Emissions From Non-road Spark-Ignition Engines at
Or Below 19 Kilowatts;
Part 91--Control of Emissions from Marine Spark-Ignition Engines;
Part 94--Control of Emissions from Marine Compression-Ignition Engines;
Part 123-- State Program Requirements;
Part 271--Requirements for Authorization of State Hazardous Waste
Programs;
Part 282--Approved Underground Storage Tank Programs; and
Part 403--General Pretreatment Regulations for Existing and New Sources
of Pollution.

    MPCA was notified of EPA's determination to approve its application
with respect to the authorized programs listed above.

Matthew Leopardreyreh,
Acting Director, Office of Information Collection.
[FR Doc. 2014-29483 Filed 12-19-14; 8:45 am]
BILLING CODE 6560-50-P


[Federal Register Volume 76, Number 31 (Tuesday, February 15, 2011)]
[Rules and Regulations]
[Pages 8653-8654]
[FR Doc No: 2011-3356]

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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 117

[Docket No. USCG-2011-0067]

Drawbridge Operation Regulation; Gulf Intracoastal Waterway, New
Orleans Harbor, Inner Harbor Navigation Canal, New Orleans, Orleans
Parish, LA

AGENCY: Coast Guard, DHS.

ACTION: Notice of temporary deviation from regulations.

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

SUMMARY: The Commander, Eighth Coast Guard District, has issued a
temporary deviation from the regulation governing the operation of the
SR 39 (Judge Seeber/Claiborne Avenue) vertical lift bridge across the
Inner Harbor Navigational Canal, mile 0.9, (Gulf Intracoastal Waterway
mile 6.7 East of Harvey Lock), at New Orleans, Orleans Parish,
Louisiana. This deviation is necessary to replace all of the deck
plating and stringers on the bridge. This deviation allows the bridge
to remain closed during the day except for two (2) scheduled openings
per day during the entire length of the closure.

DATES: This deviation is effective from 6:30 a.m. on Saturday, April 2,
2011 until 5:45 p.m. on Saturday, May 21, 2011.

ADDRESSES: Documents mentioned in this preamble as being available in
the docket are part of docket USCG-2010-0935 and are available online
by going to http://www.regulations.gov, inserting USCG-2010-0935 in the
``Keyword'' box and then clicking ``Search.'' They are also available
for inspection or copying at the Docket Management Facility (M-30),
U.S. Department of Transportation, West Building Ground Floor, Room
W12-140, 1200 New Jersey Avenue, SE., Washington, DC 20590, between 9
a.m. and 5 p.m., Monday through Friday, except Federal holidays.

FOR FURTHER INFORMATION CONTACT: If you have questions on this rule,
call or e-mail Mr. Jim Wetherington, Bridge Specialist, Eighth Coast
Guard District Bridge Branch, US Coast Guard; telephone<PHONE_NUMBER> or
e-mail<EMAIL_ADDRESS>If you have questions on viewing
the docket, call Renee V. Wright, Program Manager, Docket Operations,
telephone<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: In order to perform necessary maintenance,
the Louisiana Department of Transportation and Development has
requested a temporary deviation from the published regulation for the
SR 39 (Judge Seeber/Claiborne Avenue) vertical lift bridge across the
Inner Harbor Navigational Canal, mile 0.9, (GIWW mile 6.7 EHL). The
bridge provides 40 feet of vertical clearance when closed above mean
high water, and 156 feet above MHW in the open-to-navigation position.
Currently, under 33 CFR 117.458(a), the draw of the bridge shall open
on signal; except that, from 6:30 a.m. to 8:30 a.m. and 3:30 p.m. to
5:45 p.m. Monday through Friday, the draw need not be open for the
passage of vessels. The draw shall open at any time for a vessel in
distress.
    This deviation allows the bridge to remain closed to navigation
from 6:30 a.m. until 5:45 p.m. from April 2, 2011 through May 21, 2011.
However, during these times, the bridge will open for the passage of
vessels at 10 a.m. and 2 p.m. daily. From 5:45 p.m. until 6:30 a.m.,
the bridge will remain in the open-to-navigation position or will open
on signal. Exact times and dates for the closures will be published in
the Local Notice to Mariners and broadcast via the Coast Guard
Broadcast Notice to Mariners system.
    Navigation on the waterway consists mainly of tugs with tows and
ships. The Coast Guard has coordinated the closure with waterway users,
industry, and other Coast Guard units. These dates and this schedule
were chosen to minimize the significant effects on vessel traffic;
however, vessels that can pass under the bridge in the closed-to-
navigation position can do so any anytime. The bridge will not be able
to open for emergencies.

    The bridge must return to its regular operating schedule
immediately at the end of the designated time period. This deviation
from the operating regulations is authorized under 33 CFR 117.35.

    Dated: February 3, 2011.
David M. Frank,
Bridge Administrator.
[FR Doc. 2011-3356 Filed 2-14-11; 8:45 am]
BILLING CODE 9110-04-P


[Federal Register Volume 75, Number 240 (Wednesday, December 15, 2010)]
[Rules and Regulations]
[Pages 78154-78155]
[FR Doc No: 2010-31488]

=======================================================================
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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 730, 734, 736, 742, 744, and 745

[Docket No. 101118556-0556-02]
RIN 0694-AF05

Updated Statements of Legal Authority To Reflect Continuation of
Emergency Declared in Executive Order 12938

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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

SUMMARY: This rule updates the Code of Federal Regulations (CFR) legal
authority citations for the Export Administration Regulations (EAR) to
replace citations to the President's Notice of November 6, 2009,
Continuation of Emergency Regarding Weapons of Mass Destruction, with
citation to the President's Notice of November 4, 2010 on the same
subject. This rule also updates the authority citation for one
executive order to reflect the compilation of that executive order into
title 3 of the CFR. BIS is making these changes to keep the CFR's legal
authority citations for the EAR current.

DATES: Effective Date: December 15, 2010.

ADDRESSES: Comments concerning this rule should be sent to
<EMAIL_ADDRESS>or to Regulatory Policy Division, Bureau of
Industry and Security, Room H2705, U.S. Department of Commerce,
Washington, DC 20230. Please refer to regulatory identification number
(RIN) 0694-AF05 in all comments, and in the subject line of e-mail
comments.

FOR FURTHER INFORMATION CONTACT: William Arvin, Regulatory Policy
Division, Bureau of Industry and Security, telephone:<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Background

    In Executive Order 12938 of November 14, 1994 (59 FR 59099, 3 CFR,
1994 Comp., p. 950), the President declared a national emergency with
respect to the unusual and extraordinary threat to the national
security, foreign policy and economy of the United States posed by the
proliferation of nuclear, biological and chemical weapons and the means
of delivering such weapons. That emergency has been continued in effect
through successive annual presidential notices. The authority for parts
730, 734, 736, 742, 744 and 745 of the EAR (15 CFR parts 730, 734, 736,
742, 744 and 745) rests in part on E.O. 12938, as amended, and on the
successive annual notices continuing the emergency. This rule revises
the authority citations in those parts of the CFR to cite the notice of
November 4, 2010, which is the most recent such annual Presidential
notice, and to remove the citation to the notice of November 6, 2009 on
the same topic.
    The authority for parts 730 and 736 of the EAR also rests in part
on Executive Order 13338 of May 11, 2004, Blocking Property of Certain
Persons and Prohibiting the Export of Certain Goods to Syria. This rule
adds the title 3 CFR citation for that executive order to parts 730 and
736 to reflect the fact the E.O. 13338 has been codified into title 3
of the CFR.
    BIS is making these revisions so that title 15 of the CFR will cite
the current authority for the parts mentioned above. This rule is
purely procedural, and makes no changes other than to revise CFR
authority citations paragraphs. It does not change the text of any
section of the EAR, nor does it alter any right, obligation or
prohibition that applies to any person under the EAR.

Rulemaking Requirements

    1. This rule has been determined to be not significant for purposes
of Executive Order 12866.
    2. Notwithstanding any other provision of law, no person is
required to respond to, nor shall any person be subject to a penalty
for failure to comply with, a collection of information subject to the
requirements of the Paperwork Reduction Act of 1995 (PRA), 44 U.S.C.
3501 et seq., unless that collection of information displays a
currently valid Office of Management and Budget (OMB) Control Number.
This rule does not involve any collection of information.
    3. This rule does not contain policies with Federalism implications
as that term is defined under Executive Order 13132.
    4. The Department finds that there is good cause under 5 U.S.C.
553(b)(3)(B) to waive the provisions of the Administrative Procedure
Act requiring prior notice and the opportunity for public comment
because they are unnecessary. This rule only updates legal authority
citations and is non-discretionary. This rule does not alter any right,
obligation or prohibition that applies to any person under the EAR.
Because these revisions are not substantive changes, it is unnecessary
to provide notice and opportunity for public comment. In addition, the
30-day delay in effectiveness required by 5 U.S.C. 553(d) is not
applicable because this rule is not a substantive rule. Because neither
the Administrative Procedure Act nor any other law requires that notice
of proposed rulemaking and an opportunity for public comment be given
for this rule, the analytical requirements of the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.) are not applicable.

List of Subjects

15 CFR Part 730

    Administrative practice and procedure, Advisory committees,
Exports, Reporting and recordkeeping requirements, Strategic and
critical materials.

15 CFR Part 734

    Administrative practice and procedure, Exports, Inventions and
patents, Research, Science and technology.

15 CFR Part 736

    Exports.

15 CFR Part 742

    Exports, Terrorism.

15 CFR Part 744

    Exports, Reporting and recordkeeping requirements, Terrorism.

15 CFR Part 745

    Administrative practice and procedure, Chemicals, Exports, Foreign
trade, Reporting and recordkeeping requirements.

0
Accordingly, the EAR (15 CFR parts 730-774) is amended as follows:

PART 730--[AMENDED]

0
1. The authority citation for 15 CFR part 730 is revised to read as
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
10 U.S.C. 7420; 10 U.S.C. 7430(e); 22 U.S.C. 287c; 22 U.S.C. 2151
note; 22 U.S.C. 3201 et seq.; 22 U.S.C. 6004; 30 U.S.C. 185(s),
185(u); 42 U.S.C. 2139a; 42 U.S.C. 6212; 43 U.S.C. 1354; 15 U.S.C.
1824a; 50 U.S.C. app. 5; 22 U.S.C. 7201 et seq.; 22 U.S.C. 7210;
E.O. 11912, 41 FR 15825, 3 CFR, 1976 Comp., p. 114; E.O. 12002, 42
FR 35623, CFR, 1977 Comp., p. 133; E.O. 12058, 43 FR 20947, 3 CFR,
1978 Comp., p. 179; E.O. 12214, 45 FR 29783, 3 CFR, 1980 Comp., p.
256; E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp., p. 608; E.O. 12854,
58 FR 36587, 3 CFR, 1993 Comp., p. 179; E.O. 12918, 59 FR 28205, 3
CFR, 1994 Comp., p. 899; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp.,
p. 950; E.O. 12947, 60 FR 5079, 3 CFR, 1995 Comp., p. 356; E.O.
12981, 60 FR 62981, 3 CFR, 1995 Comp., p. 419; E.O. 13020, 61 FR
54079, 3 CFR, 1996 Comp., p. 219; E.O. 13026, 61 FR 58767, 3 CFR,
1996 Comp., p. 228; E.O. 13099, 63 FR 45167, 3 CFR, 1998 Comp., p.
208; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; E.O. 13224,
66 FR 49079, 3 CFR, 2001 Comp., p. 786; E.O. 13338, 69 FR 26751, 3
CFR, 2004 Comp., p. 168; Notice of August 12, 2010, 75 FR 50681
(August 16, 2010); Notice of November 4, 2010, 75 FR 68673 (November
8, 2010).

PART 734--[AMENDED]

0
2. The authority citation for 15 CFR part 734 is revised to read as
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 13020, 61
FR 54079, 3 CFR, 1996 Comp., p. 219; E.O. 13026, 61 FR 58767, 3 CFR,
1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p.
783; Notice of August 12, 2010, 75 FR 50681 (August 16, 2010);
Notice of November 4, 2010, 75 FR 68673 (November 8, 2010).

PART 736--[AMENDED]

0
3. The authority citation for 15 CFR part 736 is revised to read as
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
22 U.S.C. 2151 note; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p.
950; E.O. 13020, 61 FR 54079, 3 CFR, 1996 Comp., p. 219; E.O. 13026,
61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3
CFR, 2001 Comp., p. 783; E.O. 13338, 69 FR 26751, 3 CFR, 2004 Comp.,
p. 168; Notice of August 12, 2010, 75 FR 50681 (August 16, 2010);
Notice of November 4, 2010, 75 FR 68673 (November 8, 2010).

PART 742--[AMENDED]

0
4. The authority citation for 15 CFR part 742 is revised to read as
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22
U.S.C. 7210; Sec. 1503, Pub. L. 108-11, 117 Stat. 559; E.O. 12058,
43 FR 20947, 3 CFR, 1978 Comp., p. 179; E.O. 12851, 58 FR 33181, 3
CFR, 1993 Comp., p. 608; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp.,
p. 950; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O.
13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Presidential
Determination 2003-23 of May 7, 2003, 68 FR 26459, May 16, 2003;
Notice of August 12, 2010, 75 FR 50681 (August 16, 2010); Notice of
November 4, 2010, 75 FR 68673 (November 8, 2010).

PART 744--[AMENDED]

0
5. The authority citation for 15 CFR part 744 is revised to read as
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22
U.S.C. 7210; E.O. 12058, 43 FR 20947, 3 CFR, 1978 Comp., p. 179;
E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp., p. 608; E.O. 12938, 59
FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 12947, 60 FR 5079, 3 CFR,
1995 Comp., p. 356; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p.
228; E.O. 13099, 63 FR 45167, 3 CFR, 1998 Comp., p. 208; E.O. 13222,
66 FR 44025, 3 CFR, 2001 Comp., p. 783; E.O. 13224, 66 FR 49079, 3
CFR, 2001 Comp., p. 786; Notice of August 12, 2010, 75 FR 50681
(August 16, 2010); Notice of November 4, 2010, 75 FR 68673 (November
8, 2010).

PART 745--[AMENDED]

0
6. The authority citation for 15 CFR part 745 is revised to read as
follows:

    Authority: 50 U.S.C. 1701 et seq.; E.O. 12938, 59 FR 59099, 3
CFR, 1994 Comp., p. 950; Notice of November 4, 2010, 75 FR 68673
(November 8, 2010).

    Dated: December 10, 2010.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2010-31488 Filed 12-14-10; 8:45 am]
BILLING CODE 3510-33-P


[Federal Register Volume 88, Number 5 (Monday, January 9, 2023)]
[Notices]
[Pages 1219-1220]
[FR Doc No: 2023-00099]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Project No. 1971-134]

Idaho Power Company; Notice of Availability of Environmental
Assessment

    In accordance with the National Environmental Policy Act of 1969
and the Federal Energy Regulatory Commission's (Commission or FERC)
regulations, 18 Code of Federal Regulations (CFR) part 380, Commission
staff reviewed Idaho Power Company's application for a non-capacity
amendment of the license for the Hells Canyon Project No. 1971 and have
prepared an Environmental Assessment (EA). The licensee proposes to
amend the license to replace and rebuild the Oxbow Fish Hatchery
facilities. As proposed, the licensee would remove the Oxbow Fish
Hatchery building, adjacent cooling unit, abandoned raceways in the
northeast corner of the site, the abandoned raceway west of the
existing hatchery building, holding ponds, sorting and spawning
equipment, and a garage/storage building. The licensee proposes to add
the following: (1) a larger set of holding ponds with an open-air
structure covering them; (2) a masonry sorting and spawning building;
(3) a wood-framed hatchery building; (4) a wood-framed shop and storage
building; (5) a surface water intake structure and aeration tower; and
(6) a new visitor kiosk that would include interpretive and educational
information. The project consists of the Brownlee, Oxbow, and Hells
Canyon developments, and is located on the Snake River in Adams and
Washington counties, Idaho, and in Baker, Wallowa, and Malheur
counties, Oregon. The project occupies federal lands administered by
the U.S. Forest Service and the U.S. Bureau of Land Management.
    The EA contains Commission staff's analysis of the potential
environmental effects of the proposed amendment, and concludes that it
would not constitute a major federal action that would significantly
affect the quality of the human environment.
    The Commission provides all interested persons with an opportunity
to view and/or print the EA via the internet through the Commission's
Home Page (http://www.ferc.gov) using the ``eLibrary'' link. Enter the
docket number, excluding the last three digits in the docket number
field, to access the document. For assistance, contact FERC

Online Support at [email protected] or toll-free at (866) 208-
3676, or for TTY,<PHONE_NUMBER>.
    You may also register online at https://ferconline.ferc.gov/eSubscription.aspx to be notified via email of new filings and
issuances related to this or other pending projects. For assistance,
contact FERC Online Support.
    For further information, contact Marybeth Gay at<PHONE_NUMBER> or
[email protected].

    Dated: December 29, 2022.
Debbie-Anne A. Reese,
Deputy Secretary.
[FR Doc. 2023-00099 Filed 1-6-23; 8:45 am]
BILLING CODE 6717-01-P