[Federal Register: September 11, 2009 (Volume 74, Number 175)]
[Notices]
[Page 46820-46825]
[DOCID:fr11se09-94]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60619; File No. SR-NYSEArca-2009-79]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
of Proposed Rule Change Relating to Listing of Five Fixed Income Funds
of the PIMCO ETF Trust

September 3, 2009.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'' or ``Exchange Act'') \1\ and Rule 19b-4 thereunder,\2\ notice
is hereby given that, on August 27, 2009, NYSE Arca, Inc. (``NYSE
Arca'' or ``Exchange'') filed with the Securities and Exchange
Commission (``Commission'') the proposed rule change as described in
Items I, II, and III below, which Items have been prepared by the
Exchange. The Commission is publishing this notice to solicit comments
on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    Pursuant to the provisions of Section 19(b)(1) of the Exchange Act,
NYSE Arca, through its wholly-owned subsidiary NYSE Arca Equities, Inc.
(``NYSE Arca Equities'' or the ``Corporation''), proposes to list and
trade the shares of the following funds of the PIMCO ETF Trust (the
``Trust'') under NYSE Arca Equities Rule 8.600 (Managed Fund Shares):
PIMCO Enhanced Short Maturity Strategy Fund, PIMCO Government Limited
Maturity Strategy Fund, PIMCO Intermediate Municipal Bond Strategy
Fund, PIMCO Prime Limited Maturity Strategy Fund, and PIMCO Short Term
Municipal Bond Strategy Fund, (each a ``Fund'' and, collectively, the
``Funds''). The shares of the Funds are collectively referred to herein
as the ``Shares.''
    The text of the proposed rule change is available on the Exchange's
Web site at http://www.nyx.com, at the Exchange's principal office and
at the Commission's Public Reference Room.

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

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

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

1. Purpose
    The Exchange proposes to list and trade the Shares of the Funds
under NYSE Arca Equities Rule 8.600, which governs the listing and
trading of Managed Fund Shares on the Exchange.\3\ Each of the Funds
will be an actively managed exchange traded fund. The Shares will be
offered by the Trust, which is a Delaware statutory trust. The Trust is
registered with the Commission as an investment company.\4\
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    \3\ The Commission approved NYSE Arca Equities Rule 8.600 and
the listing and trading of certain funds of the PowerShares Actively
Managed Funds Trust on the Exchange pursuant to Rule 8.600 in
Securities Exchange Act Release No. 57619 (April 4, 2008) 73 FR
19544 (April 10, 2008) (SR-NYSEArca-2008-25). The Commission also
previously approved listing and trading on the Exchange, or trading
on the Exchange pursuant to unlisted trading privileges (``UTP'') of
the following actively managed funds under Rule 8.600: Securities
Exchange Act Release No. 57626 (April 4, 2008), 73 FR 19923 (April
11, 2008) (SR-NYSEArca-2008-28) (order approving trading on the
Exchange pursuant to UTP of Bear Stearns Active ETF); Securities
Exchange Act Release No. 57801 (May 8, 2008), 73 FR 27878 (May 14,
2008) (SR-NYSEArca-2008-31) (order approving Exchange listing and
trading of twelve actively-managed funds of the WisdomTree Trust);
Securities Exchange Act Release No. 59826 (April 28, 2009), 74 FR
20512 (May 4, 2009) (SR-NYSEArca-2009-22) (order approving Exchange
listing and trading of Grail American Beacon Large Cap Value ETF);
Securities Exchange Act Release No. 60460 (August 7, 2009), 74 FR
41468 (August 17, 2009) (SR-NYSEArca-2009-55) (order approving
Exchange listing and trading of Dent Tactical ETF).
    \4\ See Registration Statement on Form N-1A for the Trust filed
with the Securities and Exchange Commission on July 22, 2009 (File
Nos. 333-155395 and 811-22250) (the ``Registration Statement''). The
descriptions of the Funds and the Shares contained herein are based
on information in the Registration Statement.
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Description of the Shares and the Funds
    Pacific Investment Management Company LLC (``PIMCO'') is the
investment adviser (``Adviser'') to each Fund.\5\ State Street Bank &
Trust Co. is the custodian and transfer agent for the Funds. The
Trust's Distributor is Allianz Global Investors Distributors LLC (the
``Distributor''), an indirect subsidiary of Allianz Global Investors of
America L.P. (``AGI''), PIMCO's parent company. The Distributor is a
registered broker-dealer.\6\
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    \5\ The Exchange represents that the Adviser, as the investment
adviser of the Funds, and its related personnel, are subject to
Investment Advisers Act Rule 204A-1. This Rule specifically requires
the adoption of a code of ethics by an investment advisor to
include, at a minimum: (i) Standards of business conduct that
reflect the firm's/personnel fiduciary obligations; (ii) provisions
requiring supervised persons to comply with applicable Federal
securities laws; (iii) provisions that require all access persons to
report, and the firm to review, their personal securities
transactions and holdings periodically as specifically set forth in
Rule 204A-1; (iv) provisions requiring supervised persons to report
any violations of the code of ethics promptly to the chief
compliance officer (``CCO'') or, provided the CCO also receives
reports of all violations, to other persons designated in the code
of ethics; and (v) provisions requiring the investment advisor to
provide each of the supervised persons with a copy of the code of
ethics with an acknowledgement by said supervised persons. In
addition, Rule 206(4)-7 under the Advisers Act makes it unlawful for
an investment advisor to provide investment advice to clients unless
such investment advisor has (i) adopted and implemented written
policies and procedures reasonably designed to prevent violation, by
the investment advisor and its supervised persons, of the Advisers
Act and the Commission rules adopted thereunder; (ii) implemented,
at a minimum, an annual review regarding the adequacy of the
policies and procedures established pursuant to subparagraph (i)
above and the effectiveness of their implementation; and (iii)
designated an individual (who is a supervised person) responsible
for administering the policies and procedures adopted under
subparagraph (i) above.
    \6\ The Funds have made application for an order granting
certain exemptive relief to the Trust under the Investment Company
Act of 1940 (15 U.S.C. 80a-1) (``1940 Act''). In compliance with
Commentary .05 to NYSE Arca Equities Rule 8.600, which applies to
Managed Fund Shares based on an international or global portfolio,
the Trust's application for exemptive relief under the 1940 Act
states that the Funds will comply with the Federal securities laws
in accepting securities for deposits and satisfying redemptions with
redemption securities, including that the securities accepted for
deposits and the securities used to satisfy redemption requests are
sold in transactions that would be exempt from registration under
the Securities Act of 1933 (15 U.S.C. 77a).
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    Commentary .07 to Rule 8.600 provides that, if the investment
adviser to the Investment Company issuing Managed Fund Shares is
affiliated with a broker-dealer, such investment adviser shall erect a
``fire wall'' between the investment adviser and the broker-dealer with
respect to access to

information concerning the composition and/or changes to such
Investment Company portfolio.\7\ In addition, Commentary .07 further
requires that personnel who make decisions on the open-end fund's
portfolio composition must be subject to procedures designed to prevent
the use and dissemination of material nonpublic information regarding
the open-end fund's portfolio. Commentary .07 to Rule 8.600 is similar
to Commentary .03(a)(i) and (iii) to NYSE Arca Equities Rule 5.2(j)(3);
however, Commentary .07 in connection with the establishment of a
``fire wall'' between the investment adviser and the broker-dealer
reflects the applicable open-end fund's portfolio, not an underlying
benchmark index, as is the case with index-based funds. The Adviser is
affiliated with a broker-dealer, Allianz Global Investors Distributors
LLC, and has implemented a fire wall with respect to such broker-dealer
regarding access to information concerning the composition and/or
changes to a portfolio.
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    \7\ An investment adviser to an open-end fund is required to be
registered under the Investment Advisers Act of 1940 (the ``Advisers
Act''). As a result, the investment adviser is subject to the
provisions of Rule 204A-1 under the Advisers Act relating to codes
of ethics. This Rule requires investment advisers to adopt a code of
ethics that reflects the fiduciary nature of the relationship to
clients as well as compliance with other applicable securities laws.
Accordingly, procedures designed to prevent the communication and
misuse of non-public information by an investment adviser must be
consistent with Rule 204A-1 under the Advisers Act.
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    None of the Funds will invest in non-U.S. equity securities.
PIMCO Enhanced Short Maturity Strategy Fund
    According to the Registration Statement, the Fund's investment
objective is to seek maximum current income, consistent with
preservation of capital and daily liquidity.\8\
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    \8\ The investment objective of each Fund is non-fundamental and
may be changed by the Board of Trustees without shareholder
approval.
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    The Fund seeks to achieve its investment objective by investing
under normal circumstances at least 65% of its total assets in a
diversified portfolio of Fixed Income Instruments \9\ of varying
maturities, which may be represented by forwards or derivatives such as
options, futures contracts or swap agreements. The average portfolio
duration of this Fund will vary based on PIMCO's forecast for interest
rates and will normally not exceed one year. The dollar-weighted
average portfolio maturity of the Fund is normally not expected to
exceed three years.
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    \9\ According to the Registration Statement, ``Fixed Income
Instruments,'' as used generally in the Registration Statement,
includes:
     Securities issued or guaranteed by the U.S. Government,
its agencies or government-sponsored enterprises (``U.S. Government
Securities'');
     Corporate debt securities of U.S. and non-U.S. issuers,
including corporate commercial paper;
     Mortgage-backed and other asset-backed securities;
     Inflation-indexed bonds issued both by governments and
corporations;
     Structured notes, including hybrid or ``indexed''
securities;
     Loan participations and assignments;
     Delayed funding loans and revolving credit facilities;
     Bank certificates of deposit, fixed time deposits and
bankers' acceptances;
     Repurchase agreements on Fixed Income Instruments and
reverse repurchase agreements on Fixed Income Instruments;
     Debt securities issued by States or local governments
and their agencies, authorities and other government-sponsored
enterprises;
     Obligations of non-U.S. governments or their
subdivisions, agencies and government-sponsored enterprises; and
     Obligations of international agencies or supranational
entities.
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    According to the Registration Statement, the Fund primarily invests
in U.S. dollar-denominated investment grade debt securities, rated Baa
or higher by Moody's, or equivalently rated by S&P or Fitch, or, if
unrated, determined by PIMCO to be of comparable quality. The Fund may
invest, without limitation, in U.S. dollar-denominated fixed income
securities and instruments that are economically tied to foreign (non-
U.S.) countries.\10\ The Fund may invest up to 5% of its total assets
in U.S. dollar-denominated fixed-income securities and instruments that
are economically tied to emerging market countries.
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    \10\ According to the Registration Statement, PIMCO generally
considers an instrument to be economically tied to a non-U.S.
country if the issuer is a foreign government (or any political
subdivision, agency, authority or instrumentality of such
government), or if the issuer is organized under the laws of a non-
U.S. country. In the case of certain money market instruments, such
instruments will be considered economically tied to a non-U.S.
country if either the issuer or the guarantor of such money market
instrument is organized under the laws of a non-U.S. country. With
respect to derivative instruments, PIMCO generally considers such
instruments to be economically tied to non-U.S. countries if the
underlying assets are foreign currencies (or baskets or indexes of
such currencies), or instruments or securities that are issued by
foreign governments or issuers organized under the laws of a non-
U.S. country (or if the underlying assets are certain money market
instruments, if either the issuer or the guarantor of such money
market instruments is organized under the laws of a non-U.S.
country).
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    The Fund may invest, without limitation, in derivative instruments,
such as options, futures contracts or swap agreements, or in mortgage-
or asset-backed securities. The Fund may, without limitation, seek to
obtain market exposure to the fixed income securities in which it
primarily invests by entering into a series of purchase and sale
contracts or by using other investment techniques (such as buy backs or
dollar rolls).
    As described in the Registration Statement, the Enhanced Short
Maturity Strategy Fund also may invest in the following: up to 5% of
its total assets in any combination of mortgage-related or other asset-
backed interest-only, principal-only or inverse floater securities;
fixed- and floating-rate loans, which investments generally will be in
the form of loan participations and assignments of portions of such
loans; U.S. dollar-denominated fixed income securities and instruments;
and Brady Bonds, which are securities created through the exchange of
existing commercial bank loans to sovereign entities for new
obligations in connection with a debt restructuring.
    The Fund may, but is not required to, use derivative instruments
for risk management purposes or as part of its investment strategies.
According to the Registration Statement, generally, derivatives are
financial contracts whose value depends upon, or is derived from, the
value of an underlying asset, reference rate or index, and may relate
to stocks, bonds, interest rates, currencies or currency exchange
rates, commodities, and related indexes. Examples of derivative
instruments include options contracts, futures contracts, options on
futures contracts and swap agreements (including, but not limited to,
credit default swaps and swaps on exchange traded funds).
PIMCO Government Limited Maturity Strategy Fund
    According to the Registration Statement, the Fund's investment
objective is to seek maximum current income, consistent with
preservation of capital and daily liquidity. The Fund seeks to achieve
its investment objective by investing under normal circumstances at
least 80% of its assets in a diversified portfolio of fixed income
securities that are issued or guaranteed by the U.S. Government, its
agencies or government-sponsored enterprises (``U.S. Government
Securities''). Assets not invested in U.S. Government Securities may be
invested in other types of Fixed Income Instruments.
    According to the Registration Statement, the Fund's investments in
Fixed Income Instruments are limited to those of investment grade U.S.
dollar-denominated securities of U.S. issuers that are rated Aa or
higher by Moody's, or equivalently rated by S&P or Fitch, or, if
unrated, determined by PIMCO to be of comparable quality. The average
portfolio duration of this Fund will vary based on PIMCO's forecast for
interest

rates and will normally not exceed one year. The Fund may only invest
in securities that mature within two years from the date of purchase.
    The Fund may, without limitation, seek to obtain market exposure to
the fixed income securities in which it primarily invests by entering
into a series of purchase and sale contracts or by using other
investment techniques (such as buy backs or dollar rolls).
PIMCO Intermediate Municipal Bond Strategy Fund
    According to the Registration Statement, the Fund's investment
objective is to seek attractive tax-exempt income, consistent with
preservation of capital. The Fund seeks to achieve its investment
objective by investing under normal circumstances at least 80% of its
assets in a diversified portfolio of debt securities whose interest is,
in the opinion of bond counsel for the issuer at the time of issuance,
exempt from Federal income tax (``Municipal Bonds''). Municipal Bonds
generally are issued by or on behalf of States and local governments
and their agencies, authorities and other instrumentalities.
    According to the Registration Statement, the Fund does not intend
to invest in securities whose interest is subject to the Federal
alternative minimum tax. The Fund may only invest in U.S. dollar-
denominated investment grade debt securities. The Fund may invest 25%
or more of its total assets in Municipal Bonds that finance similar
projects, such as those relating to education, health care, housing,
transportation, and utilities, and 25% or more of its total assets in
industrial development bonds. The average portfolio duration of this
Fund normally varies from three to eight years, based on PIMCO's
forecast for interest rates. The portfolio manager focuses on bonds
with the potential to offer attractive current income, typically
looking for bonds that can provide consistently attractive current
yields or that are trading at competitive market prices.
    The Fund may, without limitation, seek to obtain market exposure to
the fixed income securities in which it primarily invests by entering
into a series of purchase and sale contracts or by using other
investment techniques (such as buy backs or dollar rolls).
PIMCO Prime Limited Maturity Strategy Fund
    According to the Registration Statement, the Fund's investment
objective is to seek maximum current income, consistent with
preservation of capital and daily liquidity. The Fund seeks to achieve
its investment objective by investing under normal circumstances at
least 65% of its total assets in a diversified portfolio of fixed
income securities of varying maturities. The Fund may only invest in
U.S. dollar-denominated securities that mature within 397 days from the
date of purchase or floating rate U.S. government agency securities
that mature within two years from the date of purchase. The average
portfolio duration of this Fund will vary based on PIMCO's forecast for
interest rates and will normally not exceed 90 days.
    According to the Registration Statement, the Fund primarily invests
in U.S. dollar-denominated investment grade debt securities, rated A or
higher by Moody's, or equivalently rated by S&P or Fitch, or, if
unrated, determined by PIMCO to be of comparable quality.
    The Fund may, without limitation, seek to obtain market exposure to
the fixed income securities in which it primarily invests by entering
into a series of purchase and sale contracts or by using other
investment techniques (such as buy backs or dollar rolls).
PIMCO Short Term Municipal Bond Strategy Fund
    According to the Registration Statement, the Fund's investment
objective is to seek attractive tax-exempt income, consistent with
preservation of capital. The Fund seeks to achieve its investment
objective by investing under normal circumstances at least 80% of its
assets in a diversified portfolio of Municipal Bonds.
    According to the Registration Statement, the Fund does not intend
to invest in securities whose interest is subject to the Federal
alternative minimum tax. The Fund may only invest in U.S. dollar-
denominated investment grade debt securities. The Fund may invest 25%
or more of its total assets in Municipal Bonds that finance similar
projects, such as those relating to education, health care, housing,
transportation, and utilities, and 25% or more of its total assets in
industrial development bonds. The average portfolio duration of this
Fund varies based on PIMCO's forecast for interest rates and under
normal market conditions is not expected to exceed three years. The
dollar-weighted average portfolio maturity of the Fund is normally not
expected to exceed three years. The portfolio manager focuses on bonds
with the potential to offer attractive current income, typically
looking for bonds that can provide consistently attractive current
yields or that are trading at competitive market prices.
    The Fund may, without limitation, seek to obtain market exposure to
the securities in which it primarily invests by entering into a series
of purchase and sale contracts or by using other investment techniques
(such as buy backs or dollar rolls).
    Each Fund may enter into repurchase agreements, in which the Fund
purchases a security from a bank or broker-dealer, which agrees to
repurchase the security at the Fund's cost plus interest within a
specified time. In addition, each Fund may enter into reverse
repurchase agreements and dollar rolls; may purchase securities which
it is eligible to purchase on a when-issued basis; may purchase and
sell such securities for delayed delivery and may make contracts to
purchase such securities for a fixed price at a future date beyond
normal settlement time (forward commitments); may invest in, to the
extent permitted by Section 12(d)(1) of the 1940 Act, other affiliated
and unaffiliated funds, such as open-end or closed-end management
investment companies, including other exchange traded funds; may invest
securities lending collateral in one or more money market funds to the
extent permitted by Rule 12d1-1 under the 1940 Act; and may invest up
to 15% of its net assets in illiquid securities.\11\
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    \11\ According to the Registration Statement, the term
``illiquid securities'' for this purpose means securities that
cannot be disposed of within seven days in the ordinary course of
business at approximately the amount at which a Fund has valued the
securities.
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The Shares
    According to the Registration Statement, Shares of a Fund that
trade in the secondary market are ``created'' at NAV \12\ by Authorized
Participants only in block-size Creation Units of 100,000 shares or
multiples thereof. Each Authorized Participant enters into an
authorized participant agreement with the Funds' Distributor. A
creation transaction, which is subject to acceptance by the transfer
agent, takes place when an Authorized Participant deposits into a Fund
a specified amount of cash and/or a portfolio of securities specified
by such Fund in exchange for a specified number of Creation Units.
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    \12\ The NAV of each Fund's shares generally is calculated once
daily Monday through Friday as of the close of regular trading on
the New York Stock Exchange, generally 4:00 p.m. Eastern time (the
``NAV Calculation Time'') on any Business Day as defined in the
Registration Statement. NAV per share is calculated by dividing a
Fund's net assets by the number of Fund shares outstanding. For more
information regarding the valuation of Fund investments in
calculating a Fund's NAV, see the Registration Statement.
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    Similarly, Shares can be redeemed only in Creation Units, generally
in-kind

for a portfolio of securities held by a Fund and/or for a specified
amount of cash. Except when aggregated in Creation Units, Shares are
not redeemable by a Fund. The prices at which creations and redemptions
occur are based on the next calculation of NAV after an order is
received. Requirements as to the timing and form of orders are
described in the authorized participant agreement.
    PIMCO, through the National Securities Clearing Corporation
(``NSCC''), makes available on each Business Day, prior to the opening
of business (subject to amendments) on the Exchange (currently 9:30
a.m., Eastern time), the identity and the required number of shares of
each Deposit Security and the amount of the Cash Component to be
included in the current Fund Deposit (based on information at the end
of the previous Business Day).
    Creations and redemptions must be made by an Authorized Participant
or through a firm that is either a member of the Continuous Net
Settlement System of the NSCC or a DTC participant, and in each case,
must have executed an agreement with the Distributor with respect to
creations and redemptions of Creation Unit aggregations.
    Additional information regarding the Trust and the Shares,
including investment strategies, risks, creation and redemption
procedures, fees, portfolio holdings, disclosure policies,
distributions and taxes is included in the Registration Statement. All
terms relating to the Funds that are referred to, but not defined in,
this proposed rule change are defined in the Registration Statement.
Availability of Information
    The Funds' Web site (http://www.pimcoetfs.com), which will be
publicly available prior to the public offering of Shares, will include
a form of the Prospectus for each Fund that may be downloaded. The Web
site will include additional quantitative information updated on a
daily basis, including, for the Funds: (1) The prior business day's
reported NAV, mid-point of the bid/ask spread at the time of
calculation of such NAV (the ``Bid/Ask Price''),\13\ and a calculation
of the premium and discount of the Bid/Ask Price against the NAV; and
(2) data in chart format displaying the frequency distribution of
discounts and premiums of the daily Bid/Ask Price against the NAV,
within appropriate ranges, for each of the four previous calendar
quarters. On each business day, before commencement of trading in
Shares in the Core Trading Session \14\ on the Exchange, the Trust will
disclose on its Web site the identities and quantities of the portfolio
of securities and other assets (the ``Disclosed Portfolio'') held by
the Funds that will form the basis for the Funds' calculation of NAV at
the end of the business day.\15\ The Web site and information will be
publicly available at no charge.
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    \13\ The Bid/Ask Price of each Fund is determined using the
midpoint of the highest bid and the lowest offer on the Exchange as
of the time of calculation of the NAV. The records relating to Bid/
Ask Prices will be retained by each Fund and its service providers.
    \14\ The Core Trading Session is 9:30 a.m. to 4 p.m. Eastern
time.
    \15\ Under accounting procedures followed by the Funds, trades
made on the prior business day (``T'') will be booked and reflected
in NAV on the current business day (``T+1''). Notwithstanding the
foregoing, portfolio trades that are executed prior to the opening
of the Exchange on any business day may be booked and reflected in
NAV on such business day. Accordingly, each Fund will be able to
disclose at the beginning of the business day the portfolio that
will form the basis for the NAV calculation at the end of the
business day.
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    In addition, for each Fund, an estimated value, defined in NYSE
Arca Equities Rule 8.600 as the ``Portfolio Indicative Value,'' that
reflects an estimated intraday value of the Fund's portfolio, will be
disseminated. The Portfolio Indicative Value will be based upon the
current value for the components of the Disclosed Portfolio and will be
updated and disseminated by the Exchange at least every 15 seconds
during the Core Trading Session on the Exchange through the facilities
of the Consolidated Tape Association. The dissemination of the
Portfolio Indicative Value, together with the Disclosed Portfolio, will
allow investors to determine the value of the underlying portfolio of a
Fund on a daily basis and to provide a close estimate of that value
throughout the trading day.
    Information regarding market price and volume of the Shares is and
will be continually available on a real-time basis throughout the day
on brokers' computer screens and other electronic services. The
previous day's closing price and trading volume information will be
published daily in the financial section of newspapers. Quotation and
last sale information for the Shares will be available via the
Consolidated Tape Association high-speed line.
    Investors can also obtain the Trust's Statement of Additional
Information (``SAI''), the Funds' Shareholder Reports, and its Form N-
CSR and Form N-SAR, filed twice a year. The Trust's SAI and Shareholder
Reports are available free upon request from the Trust, and those
documents and the Form N-CSR and Form N-SAR may be viewed on-screen or
downloaded from the Commission's Web site at http://www.sec.gov.
Initial and Continued Listing
    The Shares will be subject to NYSE Arca Equities Rule 8.600(d),
which sets forth the initial and continued listing criteria applicable
to Managed Fund Shares. The Exchange represents that, for initial and/
or continued listing, the Shares must be in compliance with Rule 10A-3
\16\ under the Exchange Act, as provided by NYSE Arca Equities Rule
5.3. A minimum of 100,000 Shares will be outstanding at the
commencement of trading on the Exchange. The Exchange will obtain a
representation from the issuer of the Shares that the net asset value
per Share will be calculated daily and that the net asset value and the
Disclosed Portfolio will be made available to all market participants
at the same time.
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    \16\ See 17 CFR 240.10A-3.
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Trading Halts
    With respect to trading halts, the Exchange may consider all
relevant factors in exercising its discretion to halt or suspend
trading in the Shares of the Funds. Shares of the Funds will be halted
if the ``circuit breaker'' parameters in NYSE Arca Equities Rule 7.12
are reached. Trading may be halted because of market conditions or for
reasons that, in the view of the Exchange, make trading in the Shares
inadvisable. These may include: (1) The extent to which trading is not
occurring in the securities comprising the Disclosed Portfolio and/or
the financial instruments of the Funds; or (2) whether other unusual
conditions or circumstances detrimental to the maintenance of a fair
and orderly market are present. Trading in the Shares will be subject
to NYSE Arca Equities Rule 8.600(d)(2)(D), which sets forth
circumstances under which Shares of the Funds may be halted.
Trading Rules
    The Exchange deems the Shares to be equity securities, thus
rendering trading in the Shares subject to the Exchange's existing
rules governing the trading of equity securities. Shares will trade on
the NYSE Arca Marketplace from 4 a.m. to 8 p.m. Eastern time in
accordance with NYSE Arca Equities Rule 7.34 (Opening, Core, and Late
Trading Sessions). The Exchange has appropriate rules to facilitate
transactions in the Shares during all trading sessions. The minimum
trading

increment for Shares on the Exchange will be $0.01.
Surveillance
    The Exchange intends to utilize its existing surveillance
procedures applicable to derivative products (which includes Managed
Fund Shares) to monitor trading in the Shares. The Exchange represents
that these procedures are adequate to properly monitor Exchange trading
of the Shares in all trading sessions and to deter and detect
violations of Exchange rules and applicable Federal securities laws.
    The Exchange's current trading surveillance focuses on detecting
securities trading outside their normal patterns. When such situations
are detected, surveillance analysis follows and investigations are
opened, where appropriate, to review the behavior of all relevant
parties for all relevant trading violations.
    The Exchange may obtain information via the Intermarket
Surveillance Group (``ISG'') from other exchanges who are members of
ISG.\17\
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    \17\ For a list of the current members of ISG, see http://
www.isgportal.org. The Exchange notes that not all of the components
of the Disclosed Portfolio for the Funds may trade on exchanges that
are members of ISG.
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    In addition, the Exchange also has a general policy prohibiting the
distribution of material, non-public information by its employees.
Information Bulletin
    Prior to the commencement of trading, the Exchange will inform its
ETP Holders in an Information Bulletin (``Bulletin'') of the special
characteristics and risks associated with trading the Shares.
Specifically, the Bulletin will discuss the following: (1) The
procedures for purchases and redemptions of Shares in Creation Unit
aggregations (and that Shares are not individually redeemable); (2)
NYSE Arca Equities Rule 9.2(a), which imposes a duty of due diligence
on its ETP Holders to learn the essential facts relating to every
customer prior to trading the Shares; (3) the risks involved in trading
the Shares during the Opening and Late Trading Sessions when an updated
Portfolio Indicative Value will not be calculated or publicly
disseminated; (4) how information regarding the Portfolio Indicative
Value is disseminated; (5) the requirement that ETP Holders deliver a
prospectus to investors purchasing newly issued Shares prior to or
concurrently with the confirmation of a transaction; and (6) trading
information.
    In addition, the Bulletin will reference that the Funds are subject
to various fees and expenses described in the Registration Statement.
The Bulletin will discuss any exemptive, no-action, and interpretive
relief granted by the Commission from any rules under the Exchange Act.
The Bulletin will also disclose that the NAV for the Shares will be
calculated after 4 p.m. Eastern time each trading day.
2. Statutory Basis
    The basis under the Exchange Act for this proposed rule change is
the requirement under Section 6(b)(5) \18\ that an exchange have rules
that are designed to prevent fraudulent and manipulative acts and
practices, to promote just and equitable principles of trade, to remove
impediments to, and perfect the mechanism of a free and open market
and, in general, to protect investors and the public interest. The
Exchange believes that the proposed rule change will facilitate the
listing and trading of additional types of exchange-traded products
that will enhance competition among market participants, to the benefit
of investors and the marketplace. In addition, the listing and trading
criteria set forth in NYSE Arca Equities Rule 8.600 are intended to
protect investors and the public interest.
---------------------------------------------------------------------------

    \18\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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

    The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.

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

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

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

    Within 35 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
    A. By order approve the proposed rule change, or
    B. Institute proceedings to determine whether the proposed rule
change should be disapproved.
    The Exchange has requested accelerated approval of this proposed
rule change prior to the 30th day after the date of publication of
notice in the Federal Register. The Commission is considering granting
accelerated approval of the proposed rule change at the end of a 15-day
comment period.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to<EMAIL_ADDRESS>Please include
File Number SR-NYSEArca-2009-79 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NYSEArca-2009-79. This
file number should be included on the subject line if e-mail is used.
To help the Commission process and review your comments more
efficiently, please use only one method. The Commission will post all
comments on the Commission's Internet Web site (http://www.sec.gov/
rules/sro.shtml). Copies of the submission, all subsequent amendments,
all written statements with respect to the proposed rule change that
are filed with the Commission, and all written communications relating
to the proposed rule change between the Commission and any person,
other than those that may be withheld from the public in accordance
with the provisions of 5 U.S.C. 552, will be available for inspection
and copying in the Commission's Public Reference Room, 100 F Street,
NE., Washington, DC 20549, on official business days between the hours
of 10 a.m. and 3 p.m. Copies of the filing 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-NYSEArca-2009-79 and should be submitted on or before
September 28, 2009.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
---------------------------------------------------------------------------

    \19\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-21908 Filed 9-10-09; 8:45 am]

BILLING CODE 8010-01-P


9 Not to mention, as I said before, the thousands of 10 LPG powered Bobtails in California that use the cargo tank 11 not a separate motor fuel tank as its motor fuel tank.

12 Sounds complicated to me. Yes, I have one page 13 left.

14 CHAIRPERSON RIORDAN: Mr. Platz, could you move 15 that along.

16 MR. PLATZ: I appreciate the Board's indulgence.

17 This issue boils down to accountability and who 18 would accept responsibility. The answer, WPGA suggests, is 19 that if we were to have a fuel specification for LPG engine 20 fuel, then California should require all LPG sold in the 21 State comply with this uniform specification.

22 If uniformity is good enough for gasoline and 23 diesel, it should be good enough for propane. It's the 24 producers that make the stuff who should be held to this 25 specification rather than the market who has no control over PETERS SHORTHAND REPORTING CORPORATION ( 916) 362 2345 191 1 the quality of the LPG he or she buys and resells.

2 So, we are respectfully requesting that you folks 3 direct staff to draw up regulations, because we know they do 4 not exist yet for future approval that addresses uniform 5 specifications for all LPG sold in California.

6 I want to also thank you for being patient with me.

7 You guys have seen me come up here a couple of times now, and 8 we really appreciate that you have been working with this 9 industry.

10 But having said that, let me repeat that we too do 11 not think we are done. Performance and durability testing 12 needs to be completed on this proposed engine fuel.

13 We must continue to explore additional engine fuel 14 specifications and the potential use of fuel additives for 15 LPG engines, and we look forward to continuing the working 16 relationship that we have with you folks today.

17 If I could have one more minute.

18 CHAIRPERSON RIORDAN: A short one.

19 MR. PLATZ: A couple of issues that were brought up 20 in the other comments, my company operates two propane 21 engines.

22 Today I have had those engines replaced for about 23 10 months, operating on what propane is available to me 24 today. We have had some residual matter problems with some 25 propane that is not addressed in this specification today.

PETERS SHORTHAND REPORTING CORPORATION ( 916) 362 2345 192 1 We have had build up of what we refer to as 2 refining oil. That has been solved somewhat with technology 3 in that there is a filtering mechanism that we have to drain 4 on a daily basis for those engines. We have not had any 5 performance in combustion problems with the fuel we are 6 burning.

7 So, it's just been a matter of whatever happens to 8 be left behind of some of that propane.

9 The other issue that I want to kind of echo what 10 Alina had to say, the task group has not had a chance to 11 discuss the .5 limitation on the butenes and heaviers.

12 The other one that comes to mind that I noticed 13 today was the sulfur content, the lowering of sulfur content 14 from 120 parts per million to 80 parts per million.

15 There is known that the propene industry can lower 16 the sulfur content of propane, because what we are doing when 17 we add an odorant to propane, we are adding a sulfur base 18 compound, and that 120 parts per million weight is the 19 minimum required for the odorant that we have to put into 20 propane.

21 So, to lower that to 80 parts per million actually 22 is a health and safety concern.

23 CHAIRPERSON RIORDAN: Okay. Thank you, Mr. Platz.

24 I appreciate your comments and the extensiveness of 25 them.

PETERS SHORTHAND REPORTING CORPORATION ( 916) 362 2345 193 1 Staff, any responses, and then I want you to do the 2 written submission into the record.

3 MR. VENTURINI: Madam Chairman, let me make a 4 couple of comments, and I think both Mr. Simeroth and Mr.

5 Jennings want to make a few comments.

6 I want to first address the performance issue. We 7 are very well aware that there is some additional work being 8 done on the program to take a look at durability and 9 performance.

10 We were hoping that that work would have been done 11 in time. Here it has not.

12 We fully intend to review that work, and if that 13 work suggests that we need to make an adjustment, we will 14 certainly bring that back to the Board.

15 The other question that was raised regarding 16 availability, a little concern, because we believe what we 17 are proposing to you today assures that there will be 18 availability of LPG in California for those vehicles by 19 basically putting the 10 percent which is basically the 20 status quote in place.

21 I also have the perception that there is a desire 22 to actually increase the 10 percent to some much higher level 23 or even go to the national or commercial grade quality 24 standard, which would be upwards of 50 percent. We do not 25 believe that is appropriate to do.

PETERS SHORTHAND REPORTING CORPORATION ( 916) 362 2345 194 1 At this point, I would like to ask Mr. Jennings to 2 address the issue having to do with all LPG meeting one spec,

3 and Mr. Simeroth can address the item about the sulfur and 4 butene.

5 I think that covers the major items.

6 MR. JENNINGS: Thank you, Mr. Venturini.

7 The ARB's authority to regulate fuels is limited to 8 an authority to regulate motor vehicle fuels. For all of our 9 motor vehicle fuels regulations, the regulations are written 10 in such a way that they only apply to that fuel when it is 11 intended for use in motor vehicles.

12 For instance, the Federal RFG regulations apply to 13 gasoline used in boats, but our regulation does not apply to 14 gasoline use in boats, because we do not have the authority 15 to do that.

16 Therefore, we treat LPG in a similar way to the way 17 we treat gasoline and diesel fuel.

18 In terms of the points that Mr. Platz made about 19 what level enforcement will take place, when we were dealing 20 with alternative fuels, such as LPG, where only 10 percent of 21 it is used as a fuel for motor vehicles, we had to come up 22 with a way where we could fairly try to catch that, but at 23 the same time not subject, beyond our authority, all of that 24 sort of fuel to the same standard, and we came up with a 25 structure that is in the regulation and that prohibits PETERS SHORTHAND REPORTING CORPORATION ( 916) 362 2345 195 1 producers from selling LPG to LPG distributors who are 2 engaged in distributing LPG for motor vehicle fuel unless the 3 producer reasonably knows on the basis of reasonably prudent 4 actions that the LPG will not be used for motor vehicles.

5 So, if the distributor simply says to the producer,

6 I want LPG that I can sell for use in motor vehicles and as 7 well as for other purposes, it would be illegal for the 8 producer to sell noncompliant products.

9 CHAIRPERSON RIORDAN: Okay. Thank you for those 10 comments.

11 MR. SIMEROTH: Madam Chairman and Members of the 12 Board, we held two workshops.

13 One was a sunset review workshop, and the other one 14 was a workshop on the full staff proposal. This was 15 subsequent to the 45 day release, after the staff proposal.

16 At those two workshops the engine manufacturers,

17 Ford and Cummins requested that we consider a more stringent 18 sulfur content requirement.

19 We said that we would consider that. We also 20 investigated what is the sulfur content in the fuel being 21 produced and distributed today.

22 What we are talking about is the sulfur content not 23 the full content. It is only the weight of the sulfur part 24 of the captan molecule. We were provided information 25 indicating that that is being made and distributed at PETERS SHORTHAND REPORTING CORPORATION ( 916) 362 2345 196 1 approximately 30 parts per million, and a standard of 80 2 parts per million weight of sulfur would not be a problem for 3 the production and distribution of complying motor vehicle 4 LPG or other LPGs as far as that goes.

5 This would be the same sulfur cap as in our present 6 gasoline regulation. The reason that we were asked to 7 consider this is if the new LPG vehicles are going to be made 8 and put on the market, they are going to have to consider the 9 same type of catalytic control equipment that is being put on 10 these clean equipment, that is the concern about the sulfur.

11 It looks like we can accommodate and give them 12 assurance that they are not going to see above the 80 cap 13 that is presently in the gasoline.

14 The butane and heavier is to address some of the 15 issues that were raised. The heavier part is that we do not 16 allow the oils and things that is barely showing up in at 17 least in some fuel and that should not be there.

18 It may be something we need to look into and see 19 why it is showing up. We limit that to half a percent.

20 That is to keep the total, all of the contents from 21 being higher than the cap that is in the specification.

22 Again, drawing the analogy between the gasoline and 23 the LPG is to allow them to meet the same standards as the 24 vehicle manufacturers. We do not think this is going to be a 25 burden.

PETERS SHORTHAND REPORTING CORPORATION ( 916) 362 2345 197 1 Again, these compounds are normally present in 2 extremely low levels, and we do not have any information 3 otherwise at this point.

4 In terms of us developing a model along the line of 5 what is in the reformulated gasoline program, I would like to 6 be able to do that, but the database does not exist to allow 7 us to do that.

8 I also concur in the comment about the octane, and 9 what we have proposed, we are less than one octane difference 10 than our reference calibration fuel.

11 I cannot see that less octane will impact the 12 performance of the engines.

13 I think that covers most of the issues. We 14 basically looked at all of the information and feel that the 15 staff recommendation represents what we think is defensible 16 at this point in time.

17 CHAIRPERSON RIORDAN: Thank you, Mr. Simeroth.

18 Let us put the written submissions into the record,

19 and then I will open it up for Board questions to the staff.

20 MR. SIMEROTH: Madam Chairman and Members of the 21 Board, we have a letter from the Advanced Technology 22 International Corporation.

23 They are a manufacturer of an additive for these 24 types of fuels, and they ask that we give consideration of 25 use of their additive.

PETERS SHORTHAND REPORTING CORPORATION ( 916) 362 2345 198 1 In talking to the Engine Manufacturers, we have not 2 found any support for including an additive specification at 3 this point in time, but we will continue to have discussions.

4 We have a letter from Ford Motor Company.

5 Generally Ford agrees with the changes recommended by the 6 staff, the circumstances in terms of the insuring the steady 7 supply, basically some of the same comments, but they think 8 that it is worth while going with the staff's recommendations 9 to ensure the steady supply of LPG and promote the sales of 10 LPG.

11 They also, Ford recommends the 80 PPM sulfur limit 12 for the reasons I discussed earlier, and they support the 13 proposed cap of .5 volume percent on the butanes, butenes and 14 heavier components.

15 ARCO Products, a company also provided a letter.

16 They feel that there may be a potential for in the future for 17 certifying other formulation of LPG and asked us to continue 18 working with them. They feel the five percent propene limit 19 would discourage the use of LPG and recommend we go with the 20 10 percent.

21 And going with the 10 percent, keep in mind that 22 they would like to work with us on developing future 23 modifications and which we are agreeing to.

24 The Industrial Truck Association, with forklifts in 25 this case, sent us a letter saying that poorer LPG fuel PETERS SHORTHAND REPORTING CORPORATION ( 916) 362 2345 199 1 quality is a problem for many years, effecting both 2 durability and performance and brought it to our attention in 3 the past, basically our Mobile Source Division.

4 They are encouraging that we not relax the H 25 5 standard and retain the H 25, except they are not supplying 6 any evidence why we should do that except for the statement.

7 We contacted them and found that the problems they 8 are referring to in terms of performance and durability are 9 not associated with the staff proposed 10 percent propene 10 fuel but proposed with fuels with that much higher limits,

11 that was the subsequent conversation.

12 They are also expressing concerns with the 13 enforcement and basically saying that we should enforce it.

14 We have a comment from the California Trade and 15 Commerce Agency recommending that we implement the staff 16 proposed changes, which you heard today.

17 CHAIRPERSON RIORDAN: Okay.

18 MR. SIMEROTH: That concludes the letters you see.

19 CHAIRPERSON RIORDAN: Thank you very much.

20 Mr. Kenny, any other comments?

21 Board Members, any questions for staff?

22 Mrs. Rakow.

23 BOARD MEMBER RAKOW: Yes. I notice in the 15 day 24 proposed changes that the staff is recommending a period of 25 five years for the review to see whether it should be PETERS SHORTHAND REPORTING CORPORATION ( 916) 362 2345 200 1 revised, retained, et cetera, and one of our witnesses had 2 suggested a three year period, because of the speed with 3 which technology changes.

4 Is five years sort of a standard?

5 MS. WALSH: Five years is basically a standard that 6 we have included in all of our regulations that you see 7 coming through, yesterday and today.

8 So, if the Board's consensus is to move that up to 9 three years, that would be appropriate.

10 BOARD MEMBER RAKOW: That would not be any 11 difficulty.

12 Okay.

13 CHAIRPERSON RIORDAN: Okay. Any other questions 14 for staff?

15 All right. This is an item that I need to close 16 the record on, and I will now close that record, however, the 17 record will be reopened when the 15 day notice of public 18 availability is issued.

19 Written or oral comments received after the hearing 20 date but before the 15 day notice is issued will not be 21 accepted as a part of the official record on this Agenda 22 Item.

23 When the record is reopened for 15 day comment 24 period, the public may submit written comments on the 25 proposed changes which will be considered and responded to on PETERS SHORTHAND REPORTING CORPORATION ( 916) 362 2345 201 1 the Final Statement of Reasons for the regulation.

2 This has ex parte requirement. Are there any to 3 disclose by any Board Members?

4 Seeing none, then we will move on to the Item, the 5 Resolution is 98 80.

6 Is there a motion?

7 BOARD MEMBER PARNELL: So moved.

8 BOARD MEMBER DUNLAP: Second.

9 CHAIRPERSON RIORDAN: Moved by Mr. Parnell.

10 Seconded by Mr. Dunlap.

11 BOARD MEMBER RAKOW: May I make a comment that is 12 not going to add to the Resolution, but it occurred to me 13 when the staff reports back in six months or whatever time it 14 is, if the study is concluded at that time, it would be maybe 15 advisable to decide whether it would be a three year or 16 five year period.

17 That is just for staff to keep in mind. I should 18 have said that earlier.

19 CHAIRPERSON RIORDAN: Okay. Are there any other 20 points that anyone wants to make?

21 The motion is before us.

22 All in favor of the motion, signify by saying aye.

23 Opposed, no.

24 The motion carries.

25 Now we are on to the next Item, which is Item PETERS SHORTHAND REPORTING CORPORATION ( 916) 362 2345 202 1 98 6 1.

2 The two principal people that are involved in that,

3 of course, are not people, entities, City of LA, and the 4 Great Basin Unified Air Pollution Control District, there are 5 two representatives, and I would like them to come forward.

6 Let me begin the record with the following. This 7 Item is a continuation of the public hearing to consider the 8 appeals of the City of Los Angeles from Orders Numbers 9 070297 04 and 040198 02 of the Great Basin Unified Air 10 Pollution Control District.

11 This Item has been continued from our July 30, 1998 12 Board hearing. The appeals are from two orders adopted by 13 the District under the Health and Safety Code 42316.

14 The first order requires that the City implement PM 15 10 control measures on the dry bed of Owens Lake, and the 16 second order requires the City to pay the fees to the 17 District.

18 The City appealed both of these orders to this 19 Board, as allowed by State law, and I do not think we will 20 all forget that.

21 At the July hearing, both the District and the city 22 reported that they had recently signed a Memorandum of 23 Agreement and requested the Board to continue the Appeal of 24 the control measure order until the December Board hearing.

25 In the meantime, I understand that the District has PETERS SHORTHAND REPORTING CORPORATION ( 916) 362 2345 203 1 adopted a revision to the Owens Valley State Implementation 2 Plan in accordance with the Memorandum of Agreement, and that 3 the City and the District are here today to jointly ask this 4 Board to dismiss both of the City's Appeals.

5 A dismissal would formally end the administrative 6 proceedings before this Board on the Appeals.

7 Let me ask Mr. Hotchkiss and Mr. Lamb to comment.

8 MR. LAMB: Madam Chairman, I am Brian Lamb.

9 I am District Counsel for the Great Basin Unified 10 Air Pollution Control District. I could not have done a 11 better summary.

12 You have taken everything I might have said.

13 CHAIRPERSON RIORDAN: My staff is very good about 14 this.

15 MR. LAMB: I ask you to merely approve the 16 stipulation dismissal with prejudice of the two pending 17 appeals at this time.

18 CHAIRPERSON RIORDAN: Thank you, and let us, we 19 will have Mr. Hotchkiss on the record representing the City 20 of LA.

21 MR. HOTCHKISS: I am the District Attorney for the 22 City of Los Angeles, and I would really like to add to the 23 record that the Resolution of these two Appeals probably 24 could not be affected in the satisfactory manner that they 25 have without all the work that was done by your staff.

PETERS SHORTHAND REPORTING CORPORATION ( 916) 362 2345 204 1 I want to compliment you on that.

2 CHAIRPERSON RIORDAN: Thank you. Thank you, and I 3 appreciate that.

4 Now finally, Andrea Lawrence, who is Mono County 5 Supervisor, would like to speak, and she is on the Governing 6 Board, of course, of the Great Basin.

7 MS. LAWRENCE: Thank you, Madam Chair. I am Andrea 8 Lawrence, Mono County Supervisor, on the Governing Board of 9 the Great Basin Air Pollution Control District.

10 I thank you so much for a few moments of your time 11 in light of a heavy Agenda. Where I am is especially 12 delighted and pleased to be here in seeing and additionally 13 hearing the two attorneys, one from the District and the City 14 of Los Angeles asking for your dismissal of the 15 administrative appeals challenging our plan.

16 Now that is behind us, we have every reason to hope 17 that as a result of the settlement, the District, we have 18 begun a new period of working cooperatively on working on the 19 plan that will ultimately see the essential act completed,

20 which is the attainment of the clear air standards by 1996

21 don't I wish  2006.

22 But there is something equally important that we 23 have to do today, because all of us who are in the decision 24 making process know full well that there are stages and there 25 are phases and there are plateaus and there are highs and PETERS SHORTHAND REPORTING CORPORATION ( 916) 362 2345 205 1 peaks and valleys, while in the process of doing this, we 2 have clearly got to acknowledge the great efforts of 3 leadership and vision that make these things possible, and in 4 recognizing this, the Great Basin on our regular Board 5 meeting on November 16 met and unanimously adopted a 6 Resolution honoring John Dunlap, III, upon his occasion of 7 his retirement from the California Air Resources Board.

8 There is a note that says here, and I will not 9 recite, it is lengthy and laudatory passages, but instead it 10 is enough to say that when we were at impasse, Chairman 11 Dunlap and all of you on the Board, your actions clearly made 12 it possible for us to be empowered both at the State level 13 and the City of Los Angeles and the County Air Resources 14 Board to come together and put, as we say in local politics,

15 the pedal to the metal, or where the rubber hits the road,

16 and all those quaint phrases, that get us down, sitting down 17 and doing the job we need to do.

18 It was done and done very successfully, and we were 19 very pleased with it. It's certainly taken years of 20 fruitless litigation, which none of us need anymore of. We 21 just need to sit down and solve our problems, and that is 22 what happened with this one.

23 Now, I would like to, I have something, we have 24 something here. We have for you, Mr. Dunlap, our enormous 25 appreciation to you for your leadership and vision in this,

PETERS SHORTHAND REPORTING CORPORATION ( 916) 362 2345 206 1 and the People of the Eastern Sierra clearly want to thank 2 you for generations to come for being such a positive role,

3 and that goes to all of you for contributing to this happy 4 resolution, and I hope you notice up here, this is our 5 characteristically angry moment on the Owens Lake, as you 6 notice going on up through here, it clearly acknowledges our 7 enormous appreciation of all of us on the east side for a 8 very important role you have all played.

9 We thank you very much.

10 CHAIRPERSON RIORDAN: Thank you. And that is well 11 deserved.

12 This is a rather happy occasion that I would close 13 the record. I do not think that staff has any comment to go 14 with this.

15 I would like to close the record on this. It is 16 just a pleasure to be able to do that.

17 There is no Resolution before the Board, but what 18 we need to do is to, as jointly requested by the District and 19 by the City, to have a motion and second to dismiss with 20 prejudice the appeals by the City of LA, and I am not going 21 to repeat those order numbers. We will make them a part of 22 the record of the Great Basin Unified Air Pollution Control 23 District.

24 It was moved and seconded by Supervisor Patrick and 25 Mr. Dunlap.

PETERS SHORTHAND REPORTING CORPORATION ( 916) 362 2345 207 1 Is there any further discussion on this item?

2 BOARD MEMBER RAKOW: No, but what a wonderful 3 Christmas present to the people of Owens Valley.

4 CHAIRPERSON RIORDAN: Let me ask now, all those in 5 favor of the motion, signify by saying aye.

6 Opposed, no.

7 The motion is carried.

8 We congratulate you.

9 I just have a footnote. At a meeting some time 10 back, it was GIS information talking about our ability to map 11 and do things, and guess what the topic was that they use as 12 an example, Great Basin, and I think Ms. Edgerton and I 13 clearly say that we know a lot of that Basin, and we have 14 good memories of the views that we had there.

15 So, we look forward to coming back and seeing it 16 when it is crystal clear.

17 We have one item, and that is the public comment 18 period, as it is appropriate for any public agency, this is a 19 open comment period for people to bring before the Board 20 items that were not on the Agenda but in our jurisdiction.

21 Is there anybody to speak under the public comment 22 period?

23 Seeing none, that is wonderful.

24 We will adjourn this meeting, as we have no further 25 business before us.

PETERS SHORTHAND REPORTING CORPORATION ( 916) 362 2345 208 1 I just have to say two things, though, as the 2 Chairman I have a prerogative. Former Mr. Chairman, that is 3 to say thank you to all of you. This was an incredible 4 Agenda.

5 I think when we look back on it with some pride, we 6 have accomplished a lot. We particularly accomplished a lot 7 this year under the guidance of Mr. Dunlap, and I wish to 8 wish all of you, the staff who worked so hard for us, the 9 very best of holidays.

10 There are a number of holidays coming up for a 11 number of religions, and I wish you all the very best and a 12 safe trip home everybody.

13 MR. KENNY: And if I could just make a couple quick 14 comments.

15 I also want to thank the Board. When we counted 16 out the number of witnesses that you heard over the last two 17 days, we stopped at 100, and it continued to go beyond that,

18 so I also want to wish you on behalf of the staff a very 19 happy and restful holidays in light of the last two days.

20 Thank you very much.

21 CHAIRPERSON RIORDAN: Thank you, and we are 22 adjourned.

23 ( Thereupon the Air Resources Board meeting 24 was adjourned at 1: 30 p. m.)

25  o0o

PETERS SHORTHAND REPORTING CORPORATION ( 916) 362 2345 209 1 CERTIFICATE OF SHORTHAND REPORTER 2 3 I, VICKI L. OGELVIE, a Certified Shorthand 4 Reporter of the State of California, do hereby certify:

5 That I am a disinterested person herein; that the 6 foregoing hearing was reported in shorthand by me, Vicki L.

7 OGELVIE, a Certified Shorthand Reporter of the State of 8 California, and thereafter transcribed into typewriting.

9 I further certify that I am not of counsel or 10 attorney for any of the parties to said hearing nor in any 11 way interested in the outcome of said hearing.

12 IN WITNESS WHEREOF, I have hereunto set my hand 13 this twentieth day of December, 1998.

14 15 16 VICKI L. OGELVIE 17 Certified Shorthand Reporter License No. 7871 18 19 20 21 22 23 24 25 PETERS SHORTHAND REPORTING CORPORATION ( 916) 362 2345 210 1 CERTIFICATE OF SHORTHAND REPORTER 2 3 I, JANET H. NICOL, a Certified Shorthand Reporter 4 of the State of California, do hereby certify that I am a 5 disinterested person herein; that I reported the foregoing 6 meeting in shorthand writing; that I thereafter caused my 7 shorthand writing to be transcribed into typewriting.

8 I further certify that I am not of counsel or 9 attorney for any of the parties to said meeting, or in any 10 way interested in the outcome of said meeting.

11 IN WITNESS WHEREOF, I have hereunto set my hand 12 this 20th day of December 1998.

13 14 15 16 Janet H. Nicol 17 Certified Shorthand Reporter License Number 9764 18 19 20 21 22 23 24 25 PETERS SHORTHAND REPORTING CORPORATION ( 916) 362 2345


[Federal Register Volume 79, Number 161 (Wednesday, August 20, 2014)]
[Notices]
[Pages 49370-49371]
[FR Doc No: 2014-19818]

=======================================================================
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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

Office of Commercial Space Transportation; Notice of Availability
of the Final Environmental Assessment (EA) for Issuing an Experimental
Permit to Space Exploration Technologies Corp. (SpaceX) for Operation
of the DragonFly Vehicle at the McGregor Test Site, McGregor, Texas,
and Finding of No Significant Impact (FONSI)

AGENCY: Federal Aviation Administration (FAA), Department of
Transportation (DOT).

ACTION: Notice of Availability.

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

SUMMARY: In accordance with the National Environmental Policy Act of
1969, as amended (NEPA; 42 U.S.C. 4321, et seq.), Council on
Environmental Quality NEPA implementing regulations (40 CFR Parts 1500-
1508), and FAA Order 1050.1E, Change 1, the FAA is announcing the
availability of the Final EA for Issuing an Experimental Permit to
SpaceX for Operation of the DragonFly Vehicle at the McGregor Test
Site, McGregor, Texas, and FONSI.

FOR FURTHER INFORMATION CONTACT: Mr. Daniel Czelusniak, Federal
Aviation Administration, 800 Independence Avenue SW., Suite 325,
Washington, DC 20591; email<EMAIL_ADDRESS>or phone (202)
267-5924.

SUPPLEMENTARY INFORMATION: The Final EA was prepared to analyze the
potential environmental impacts of SpaceX's proposal to conduct
suborbital launches and landings of the DragonFly reusable launch
vehicle (RLV) at the McGregor, Texas test site located in McLennan and
Coryell Counties. To conduct this experimental testing, SpaceX must
obtain an experimental permit from the FAA. Under the Proposed Action
addressed in the EA, the FAA would issue an experimental permit to
SpaceX, which would authorize SpaceX to conduct suborbital launches and
landings of the DragonFly RLV from the McGregor test site. To support
the DragonFly RLV activities under the experimental permit, SpaceX
would construct a 40 foot (ft) by 40 ft launch pad. Therefore, the
Proposed Action analyzed in the EA includes the activities that would
be authorized by the experimental permit (i.e., the operation of the
launch vehicle) as well as the construction of the launch pad. SpaceX
anticipates the DragonFly RLV program would require up to two years to
complete (2014-2015). Therefore, the Proposed Action considers one new
permit and one potential permit renewal. A maximum of 30 annual
operations are proposed in each year of operation.
    The Final EA addresses the potential environmental impacts of
implementing the Proposed Action and the No Action Alternative. Under
the No Action Alternative, the FAA would not issue an experimental
permit to SpaceX for the operation of the DragonFly RLV at the McGregor
test site. Existing SpaceX activities would continue at the McGregor
test site, which include engine testing for the Falcon 9 launch
vehicle.
    The impact categories considered in the Final EA include air
quality; noise and compatible land use; Department of Transportation
Act: Section 4(f); historical, architectural, archaeological, and
cultural resources; fish, wildlife, and plants; water quality (surface
waters, groundwater, wetlands, and floodplains); natural resources and
energy supply; hazardous materials, pollution prevention, and solid
waste; light emissions and visual impacts; and socioeconomics,
environmental justice, and children's environmental health and safety
risks. The Final EA also considers the potential cumulative
environmental impacts.
    The FAA has posted the Final EA and FONSI on the FAA Web site at
http://www.faa.gov/about/office_org/headquarters_offices/ast/environmental/review/permits/.
    The FAA published a Notice of Availability of the Draft EA in the
Federal Register on May 21, 2014. A Notice of Availability of the Draft
EA was also published in The McGregor Mirror on May 22, 2014. The FAA
mailed copies of the Draft EA to the following agencies: Texas
Historical Commission (State Historic Preservation Officer), Texas
Commission on Environmental Quality, Texas Parks and Wildlife
Department, and U.S. Fish and Wildlife Service. An electronic version
of the Draft EA was also made available on the FAA Web site. In
addition, the FAA printed and mailed a copy of the Draft EA to the
McGinley Memorial Library, located at 317 Main Street, McGregor, Texas
76657. The public comment period ended on June 19, 2014. The FAA
received letters from the U.S. Department of Interior, Texas Parks and
Wildlife Department, and Tonkawa Tribe of Oklahoma. The Final EA
responds to all substantive comments and includes any changes or edits
resulting from the comments received.

    Issued in Washington, DC on: August 12, 2014.
Daniel Murray,
Manager, Space Transportation Development Division.
[FR Doc. 2014-19818 Filed 8-19-14; 8:45 am]
BILLING CODE 4310-13-P


[Federal Register Volume 86, Number 42 (Friday, March 5, 2021)]
[Notices]
[Pages 12991-12993]
[FR Doc No: 2021-04530]

=======================================================================
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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-91227; File No. SR-NYSE-2020-95]

Self-Regulatory Organizations; New York Stock Exchange LLC; Order
Instituting Proceedings To Determine Whether To Approve or Disapprove a
Proposed Rule Change To Make Permanent Commentaries to Rule 7.35A and
Commentaries to Rule 7.35B and Make Related Changes to Rules 7.32,
7.35C, 46B, and 47

March 1, 2021.

I. Introduction

    On November 13, 2020, New York Stock Exchange LLC (``Exchange'' or
``NYSE'') 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 make permanent Commentaries .01(a) and (b) and
.06 to Rule 7.35A (DMM-Facilitated Core Open and Trading Halt Auctions)
and Commentaries .01 and .03 to Rule 7.35B (DMM-Facilitated Closing
Auctions) and to make related changes to Rules 7.32 (Order Entry),
7.35C (Exchange-Facilitated Closing Auctions), 46B (Regulatory Trading
Official), and 47 (Floor Officials--Unusual Situations). The proposed
rule change was published for comment in the Federal Register on
December 1, 2020.\3\
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 90495 (Nov. 24,
2020), 85 FR 77304 (Dec. 1, 2020) (SR-NYSE-2020-95) (``Notice'').
---------------------------------------------------------------------------

    On January 13, 2020, the Commission extended to March 1, 2021, the
time period in which to approve the proposal, disapprove the proposal,
or institute proceedings to determine whether to approve or disapprove
the proposal.\4\ The Commission has received no comments on the
proposal. This order institutes proceedings under Section 19(b)(2)(B)
of the Act to determine whether to approve or disapprove the proposal.
---------------------------------------------------------------------------

    \4\ See Securities Exchange Act Release No. 90917 (Jan. 13,
2021), 86 FR 6403 (Jan. 21, 2020).
---------------------------------------------------------------------------

II. Description of the Proposal

Proposed Changes to Parameters for DMM-Facilitated Electronic Auctions

    The Exchange proposes to make permanent the parameters for DMM-
facilitated electronic auctions that are currently in effect on a
temporary basis during the Covid-19 pandemic, as set forth in
Commentaries .01(a) and (b) to Rule 7.35A and Commentary .01 to Rule
7.35B.\5\
---------------------------------------------------------------------------

    \5\ See Notice, supra note 3, at 77305.
---------------------------------------------------------------------------

    Current Rules 7.35A(c)(1)(G) and (H) provide that a DMM may not
effect a Core Open or Trading Halt Auction electronically if (i) the
Auction Price will be more than 4% away from the Consolidated Last Sale
Price,\6\ or (ii) the paired volume for the Auction will be more than
1,500 round lots for securities with an average opening volume of 1,000
round lots or fewer in the previous calendar quarter, or 5,000 round
lots for securities with an average opening volume of over 1,000 round
lots in the previous calendar quarter. Rule 7.35A(c)(2) further
provides that if, as of 9:00 a.m., the E-mini S&P 500 Futures are +/-
2% from the prior day's closing price of the E-mini S&P 500 Futures, or
if the Exchange determines that it is necessary or appropriate for the
maintenance of a fair and orderly market, a DMM may effect an opening
or reopening electronically if the Auction Price will be up to 8% away
from Consolidated Last Sale Price, without any volume limitations.\7\
---------------------------------------------------------------------------

    \6\ The term ``Consolidated Last Sale Price'' is defined in Rule
7.35 to mean the most recent consolidated last-sale eligible trade
in a security on any market during Core Trading Hours on that
trading day, and if none, the Official Closing Price from the prior
trading day for that security.
    \7\ See Notice, supra note 3, at 77305.
---------------------------------------------------------------------------

    Current Rule 7.35B(c)(1)(G) and (H) provide that a DMM may not
effect a Closing Auction electronically if (i) the Auction Price will
be more than a designated percentage away from the Exchange Last Sale
Price, or (ii) the paired volume for the Closing Auction will be more
than 1,000 round lots for such security.\8\
---------------------------------------------------------------------------

    \8\ See id.
---------------------------------------------------------------------------

    The Exchange proposes to make the price percentage parameter 10%
and eliminate the volume restrictions for all DMM-facilitated Auctions.
These parameters are currently in effect on a temporary basis pursuant
to Commentaries .01(a) and (b) to Rule 7.35A and Commentary .01 to Rule
7.35B.\9\
---------------------------------------------------------------------------

    \9\ See Notice, supra note 3, at 77305-77306.
---------------------------------------------------------------------------

Proposed Changes to Applicable Price Range for Pre-Opening Indications

    The Exchange proposes to make permanent that the Applicable Price
Range for determining whether to publish a pre-opening indication would
be 10% for securities with an Indication Reference Price higher than
$3.00 and $0.30 for securities with an Indication Reference Price equal
to or lower than $3.00, which are currently in effect on a temporary
basis during the Covid-19 pandemic, as set forth in Commentary .06 to
Rule 7.35A.\10\
---------------------------------------------------------------------------

    \10\ See Notice, supra note 3, at 77307.
---------------------------------------------------------------------------

    Rule 7.35A(d)(1)(A) currently provides that a DMM will publish a
pre-opening indication before a security opens or reopens if the Core
Open or Trading Halt Auction is anticipated to be a change of more than
the ``Applicable Price Range,'' as specified in Rule 7.35A(d)(3), from
a specified ``Indication Reference Price,'' as specified in Rule
7.35A(d)(2).\11\
---------------------------------------------------------------------------

    \11\ See id.
---------------------------------------------------------------------------

    Rule 7.35A(d)(3)(A) provides that the Applicable Price Range will
be 5% for securities with an Indication Reference Price over $3.00 and
$0.15 for securities with an Indication Reference Price equal to or
lower than $3.00. Rule 7.35A(d)(3)(B) further provides that, if as of
9:00 a.m., the E-mini S&P 500 Futures are +/-2% from the prior day's
closing price of the E-mini S&P 500 Futures, when reopening trading
following a market-wide trading halt under Rule 7.12, or if the
Exchange

determines that it is necessary or appropriate for the maintenance of a
fair and order market, the Applicable Price Range for determining
whether to publish a pre-opening indication will be 10% for securities
with an Indication Reference Price over $3.00 and $0.30 for securities
with an Indication Reference Price equal to or lower than $3.00.\12\
---------------------------------------------------------------------------

    \12\ See id.
---------------------------------------------------------------------------

    Current Rule 7.35A(1)(A) further provides that a DMM may not effect
a Core Open or Trading Halt Auction electronically if a pre-opening
indication has been published for the Core Open Auction. The Exchange
notes that if a DMM chooses to facilitate a Core Open Auction or
Trading Halt Auction manually (i.e., if there is less than a 10% price
movement), a DMM could still choose to publish a pre-opening indication
in connection with such Auction, even if the Applicable Price Range has
not been triggered.\13\
---------------------------------------------------------------------------

    \13\ See id.
---------------------------------------------------------------------------

Proposed Changes to Floor Broker Interest for the Closing Auction

    The Exchange proposes to make permanent that Floor Broker Interest
would not be eligible to participate in the Closing Auction, as set
forth in Commentary .03 to Rule 7.35B. The term ``Floor Broker
Interest'' is defined in Rule 7.35(a)(9) to mean orders represented
orally by a Floor broker at the point of sale.\14\
---------------------------------------------------------------------------

    \14\ See id.
---------------------------------------------------------------------------

    Rule 7.35B(a)(1) currently provides that Floor Broker Interest is
eligible to participate in the Closing Auction provided that the Floor
broker has electronically entered such interest before the Auction
Processing Period for the Closing Auction begins. The Rule further
provides that for such interest to be eligible to participate in the
Closing Auction, a Floor broker must first, by the end of, but not
after, Core Trading Hours, orally represent Floor Broker Interest at
the point of sale, including symbol, side, size, and limit price, and
then second, electronically enter such interest after the end of Core
Trading Hours. Current Rules 7.35B(a)(1)(B) and (C) set forth
additional requirements relating to electronic acceptance of such
interest by the DMM and circumstances when such interest can be
cancelled.\15\
---------------------------------------------------------------------------

    \15\ See Notice, supra note 3, at 77307-77308.
---------------------------------------------------------------------------

    To effect this change, the Exchange proposes to amend Rule
7.35B(a)(1) to provide that Floor Broker Interest would not be eligible
to participate in the Closing Auction. The Exchange further proposes to
provide that Floor brokers must enter any orders for the Closing
Auction, as defined in Rule 7.31, electronically during Core Trading
Hours. The Exchange states that the cross-reference to Rule 7.31 in the
Rule would provide notice to Floor brokers and their customers of which
order types are available for electronic entry by Floor brokers for the
Closing Auction, which include both Auction-Only Orders described in
Rule 7.31(c) and other orders that may be resting on the Exchange Book
that are eligible to participate in the Closing Auction. The Exchange
also proposes to delete Commentary .03 to Rule 7.35B.\16\
---------------------------------------------------------------------------

    \16\ See Notice, supra note 3, at 77308.
---------------------------------------------------------------------------

    The Exchange proposes to make related changes by deleting the
clause ``and Floor Broker Interest intended for the Closing Auction as
defined in Rule 7.35B(a)(1)'' from Rule 7.32. Similarly, the Exchange
proposes to delete the text set forth in Rule 7.35C(a)(2) relating to
Floor Broker Interest that provides that ``Floor Broker Interest that
has been electronically accepted by the DMM and that has not been
cancelled as provided for in Rule 7.35B(a)(1)(C) will be eligible to
participate in an Exchange-facilitated Closing Auction.'' \17\
---------------------------------------------------------------------------

    \17\ See id.
---------------------------------------------------------------------------

    In addition, the Exchange proposes to delete Rule 46B and amend
Rule 47(b). Under Rule 47, Floor Officials have the authority to
``supervise and regulate active openings and unusual situations that
may arise in connection with the making of bids, offers or transactions
on the Floor.'' The Exchange recently amended its rules to add
Regulatory Trading Officials (``RTO''), which are defined in Rule
46B.\18\ The Exchange amended Rule 47 to add subparagraph (b), which
provides that RTOs, instead of Floor Officials, would be responsible
for supervising and regulating situations regarding whether a verbal
bid or verbal offer is eligible for inclusion in the Closing Auction by
the DMM.\19\
---------------------------------------------------------------------------

    \18\ See Securities Exchange Act Release No. 88765 (April 29,
2020), 85 FR 26771 (May 5, 2020) (SR-NYSE-2020-03) (``RTO Approval
Order'').
    \19\ See id.
---------------------------------------------------------------------------

    In connection with eliminating verbal bids or verbal offers for the
Closing Auction, the Exchange proposes to delete the last clause of
Rule 47(a) and subparagraph (b) to Rule 47.\20\ According to the
Exchange, as proposed, Rule 47 would revert to the rule text in effect
prior to the RTO Approval Order and would provide that ``Floor
Officials shall have power to supervise and regulate active openings
and unusual situations that may arise in connection with the making of
bids, offers or transactions on the Floor.'' According to the Exchange,
with this proposed change, RTOs would no longer have a role under
Exchange rules, and it therefore proposes to delete Rule 46B.\21\
---------------------------------------------------------------------------

    \20\ RTOs were approved when the Trading Floor was temporarily
closed. Id. Because Commentary .03 to Rule 7.35B was implemented
when DMMs returned to the Trading Floor, there has not been any
Floor Broker Interest for Closing Auctions since RTOs were created
and therefore RTOs have not had to perform the functions as
described in Rule 46(b).
    \21\ See id.
---------------------------------------------------------------------------

    The Exchange also proposes to delete Commentary .02 to Rule 7.35B.
According to the Exchange, this Commentary is obsolete because it has
not been in effect since May 22, 2020.

III. Proceedings To Determine Whether To Disapprove SR-NYSE-2020-95 and
Grounds for Disapproval Under Consideration

    The Commission is instituting proceedings pursuant to Section
19(b)(2)(B) of the Act \22\ to determine whether the proposal should be
disapproved. Institution of such proceedings is appropriate at this
time in view of the legal and policy issues raised by the proposal, as
discussed below. Institution of disapproval proceedings does not
indicate that the Commission has reached any conclusions with respect
to any of the issues involved. Rather, as described in greater detail
below, the Commission seeks and encourages interested persons to
provide additional comment on the proposal.
---------------------------------------------------------------------------

    \22\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------

    Pursuant to Section 19(b)(2)(B) of the Act, 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,\23\ which requires that the rules of an exchange be
designed, among other things, 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. In addition, Section 6(b)(5) of the
Act prohibits the rules of an exchange from being designed to permit
unfair discrimination between customers, issuers, brokers, or dealers.
---------------------------------------------------------------------------

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

    Under the proposal, the Exchange seeks to amend Rules 7.35A and
7.35B to widen the price parameters to 10% for DMM-facilitated
electronic Core Open, Trading Halt, and Closing Auctions. Accordingly,
the Commission seeks public comment on the proposed price parameters
for DMM-facilitated

electronic auctions. Specifically, the Commission seeks public comment
on the following topics:
    1. The NYSE proposal for Trading Halt Auctions facilitated
electronically by DMMs would differ from other primary listing markets'
reopening processes after limit-up/limit-down (LULD) pauses and market-
wide circuit breaker (MWCB) halts in that it would permit a fully
automated reopening of trading at prices up to 10% away from the
auction reference price immediately after a trading pauses or halts,
whereas Nasdaq, NYSE Arca, and Cboe BZX establish 5% price bands for
reopening and then widen those price bands in increments of 5%, with
additional auction extension messages associated with each widening,
until market interest can be satisfied. Should the primary listing
exchanges harmonize their respective processes for reopening trading by
fully automated auction after an LULD pause or a Level 1 or Level 2
MWCB halt, and if so, why? If so, which aspects of the reopening
processes following LULD pauses and MWCB halts should be harmonized
(e.g., period of auction order entry, type of auction information
disseminated, length of dissemination period, frequency of
dissemination, auction reference price, determination of auction match
price, width of permitted price bands, or expansions of permitted price
bands) and what are the appropriate parameters? Should NYSE further
harmonize its proposed Trading Halt Auction process for fully automated
auctions facilitated electronically by DMMs to align with Nasdaq, NYSE
Arca, and Cboe BZX regarding the establishment of permitted price
bands, and/or the limit (or lack thereof) on price band adjustments?
    2. Is it appropriate for the Exchange to permit a DMM to reopen a
security up to 10% away from the reference price immediately after an
LULD pause or MWCB halt without human intervention? Are there any
specific data, statistics, or studies to support the Exchange's
proposed price parameters within which a DMM can electronically
facilitate a Trading Halt Auction?
    3. Are there characteristics of the NYSE market structure that
warrant divergence from the price parameters in place for other
exchanges' fully automated reopening auctions immediately following an
LULD pause or MWCB halt? For example, does the nature of DMM
participation in a Trading Halt Auction, whether the DMM participates
manually or electronically, justify the ability of the NYSE to
conducted a fully automated reopening auction 10% away from the
reference price immediately after an LULD pause or MWCB halt, rather
than 5% away, as at other primary listing exchanges?
    4. Should the price parameters within which DMMs are permitted to
electronically facilitate auctions be the same for Core Open Auctions,
Trading Halt Auctions, and Closing Auctions?

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) \24\ of the Act 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 under
the Act,\25\ any request for an opportunity to make an oral
presentation.\26\
---------------------------------------------------------------------------

    \24\ 15 U.S.C. 78f(b)(5).
    \25\ 17 CFR 240.19b-4.
    \26\ Rule 700(c)(2) of the Commission's Rules of Practice
provides that ``[t]he Commission, in its sole discretion, may
determine whether any issues relevant to approval or disapproval
would be facilitated by the opportunity for an oral presentation of
views.'' 17 CFR 201.700(c)(2).
---------------------------------------------------------------------------

    Interested persons are invited to submit written data, views and
arguments regarding whether the proposal should be disapproved by March
26, 2021. Any person who wishes to file a rebuttal to any other
person's submission must file that rebuttal by April 9, 2021.
    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-NYSE-2020-95 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 Numbers SR-NYSE-2020-95. The file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposal that are filed with the
Commission, and all written communications relating to the proposal
between the Commission and any person, other than those that may be
withheld from the public in accordance with the provisions of 5 U.S.C.
552, will be available for website viewing and printing in the
Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of such filings also will be available for inspection
and copying at the principal office of the Exchanges. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-NYSE-2020-95 and should be submitted on
or before March 26, 2021. Rebuttal comments should be submitted by
April 9, 2021.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\27\
---------------------------------------------------------------------------

    \27\ 17 CFR 200.30-3(a)(57).
---------------------------------------------------------------------------

J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-04530 Filed 3-4-21; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register: July 31, 2007 (Volume 72, Number 146)]
[Notices]
[Page 41716]
[DOCID:fr31jy07-44]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. RP07-534-000]

Dominion Transmission, Inc.; Notice of Proposed Changes in FERC
Gas Tariff

July 24, 2007.
    Take notice that on July 19, 2007, Dominion Transmission, Inc.
(DTI) tendered for filing as part of its FERC Gas Tariff, Third Revised
Volume No. 1, the following tariff sheets, to become effective August
20, 2007:

Second Revised Sheet No. 1130
Second Revised Sheet No. 1131

    DTI states that the purpose of this filing is to provide for an
alternative method in which it may distribute purchased gas-related
refunds from its gas suppliers for service provided prior to October 1,
1993.
    Any person desiring to intervene or to protest this filing must
file in accordance with Rules 211 and 214 of the Commission's Rules of
Practice and Procedure (18 CFR 385.211 and 385.214). Protests will be
considered by the Commission in determining the appropriate action to
be taken, but will not serve to make protestants parties to the
proceeding. Any person wishing to become a party must file a notice of
intervention or motion to intervene, as appropriate. Such notices,
motions, or protests must be filed in accordance with the provisions of
Sec.  154.210 of the Commission's regulations (18 CFR 154.210). Anyone
filing an intervention or protest must serve a copy of that document on
the Applicant. Anyone filing an intervention or protest on or before
the intervention or protest date need not serve motions to intervene or
protests on persons other than the Applicant.
    The Commission encourages electronic submission of protests and
interventions in lieu of paper using the ``eFiling'' link at http://www.ferc.gov.
 Persons unable to file electronically should submit an

original and 14 copies of the protest or intervention to the Federal
Energy Regulatory Commission, 888 First Street, NE., Washington, DC
20426.
    This filing is accessible on-line at http://www.ferc.gov, using the

``eLibrary'' link and is available for review in the Commission's
Public Reference Room in Washington, DC. There is an ``eSubscription''
link on the Web site that enables subscribers to receive e-mail
notification when a document is added to a subscribed docket(s). For
assistance with any FERC Online service, please e-mail
<EMAIL_ADDRESS>or call<PHONE_NUMBER> (toll free). For

TTY, call<PHONE_NUMBER>.

Kimberly D. Bose,
Secretary.
 [FR Doc. E7-14747 Filed 7-30-07; 8:45 am]

BILLING CODE 6717-01-P