[Federal Register Volume 83, Number 145 (Friday, July 27, 2018)]
[Proposed Rules]
[Pages 35570-35571]
[FR Doc No: 2018-16012]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 71

[Docket No. FAA-2018-0370; Airspace Docket No. 18-AGL-11]
RIN 2120-AA66

Proposed Amendment of Class E Airspace; Wooster, OH

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: This action proposes to amend the Class E airspace extending
upward from 700 feet above the surface at Wayne County Airport,
Wooster, OH. The FAA is proposing this action as a result of an
airspace review caused by the decommissioning of the Tiverton VHF
omnidirectional range (VOR) navigation aid as part of the VOR Minimum
Operational Network (MON) Program. The geographic coordinates of the
airport would also be updated to coincide with the FAA's aeronautical
database.

DATES: Comments must be received on or before September 10, 2018.

ADDRESSES: Send comments on this proposal to the U.S. Department of
Transportation, Docket Operations, West Building Ground Floor, Room
W12-140, 1200 New Jersey Avenue SE, Washington, DC 20590; telephone
(202) 366-9826, or<PHONE_NUMBER>. You must identify FAA Docket No.
FAA-2018-0370; Airspace Docket No. 18-AGL-11, at the beginning of your
comments. You may also submit comments through the internet at http://www.regulations.gov. You may review the public docket containing the
proposal, any comments received, and any final disposition in person in
the Dockets Office between 9:00 a.m. and 5:00 p.m., Monday through
Friday, except Federal holidays.
    FAA Order 7400.11B, Airspace Designations and Reporting Points, and
subsequent amendments can be viewed online at http://www.faa.gov/air_traffic/publications/. For further information, you can contact the
Airspace Policy Group, Federal Aviation Administration, 800
Independence Avenue SW, Washington, DC 20591; telephone: (202) 267-
8783. The Order is also available for inspection at the National
Archives and Records Administration (NARA). For information on the
availability of FAA Order 7400.11B at NARA, call<PHONE_NUMBER>, or go
to http://www.archives.gov/federal-register/cfr/ibr-locations.html.
    FAA Order 7400.11, Airspace Designations and Reporting Points, is
published yearly and effective on September 15.

FOR FURTHER INFORMATION CONTACT: Jeffrey Claypool, Federal Aviation
Administration, Operations Support Group, Central Service Center, 10101
Hillwood Parkway, Fort Worth, TX 76177; telephone<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Authority for This Rulemaking

    The FAA's authority to issue rules regarding aviation safety is
found in Title 49 of the United States Code. Subtitle I, Section 106
describes the authority of the FAA Administrator. Subtitle VII,
Aviation Programs, describes in more detail the scope of the agency's
authority. This rulemaking is promulgated under the authority described
in Subtitle VII, Part A, Subpart I, Section 40103. Under that section,
the FAA is charged with prescribing regulations to assign the use of
airspace necessary to ensure the safety of aircraft and the efficient
use of airspace. This regulation is within the scope of that authority
as it would amend Class E airspace extending upward from 700 feet above
the surface at Wayne County Airport, Wooster, OH, to support instrument
flight rule operations at this airport.

Comments Invited

    Interested parties are invited to participate in this proposed
rulemaking by submitting such written data, views, or arguments, as
they may desire. Comments that provide the factual basis supporting the
views and suggestions presented are particularly helpful in developing
reasoned regulatory decisions on the proposal. Comments are
specifically invited on the overall regulatory, aeronautical, economic,
environmental, and energy-related aspects of the proposal.
Communications should identify both docket numbers and be submitted in
triplicate to the address listed above. Commenters wishing the FAA to
acknowledge receipt of their comments on this notice must submit with
those comments a self-addressed, stamped

postcard on which the following statement is made: ``Comments to Docket
No. FAA-2018-0370/Airspace Docket No. 18-AGL-11.'' The postcard will be
date/time stamped and returned to the commenter.
    All communications received before the specified closing date for
comments will be considered before taking action on the proposed rule.
The proposal contained in this notice may be changed in light of the
comments received. A report summarizing each substantive public contact
with FAA personnel concerned with this rulemaking will be filed in the
docket.

Availability of NPRMs

    An electronic copy of this document may be downloaded through the
internet at http://www.regulations.gov. Recently published rulemaking
documents can also be accessed through the FAA's web page at http://www.faa.gov/air_traffic/publications/airspace_amendments/.
    You may review the public docket containing the proposal, any
comments received, and any final disposition in person in the Dockets
Office (see the ADDRESSES section for the address and phone number)
between 9:00 a.m. and 5:00 p.m., Monday through Friday, except federal
holidays. An informal docket may also be examined during normal
business hours at the Federal Aviation Administration, Air Traffic
Organization, Central Service Center, Operations Support Group, 10101
Hillwood Parkway, Fort Worth, TX 76177.

Availability and Summary of Documents for Incorporation by Reference

    This document proposes to amend FAA Order 7400.11B, Airspace
Designations and Reporting Points, dated August 3, 2017, and effective
September 15, 2017. FAA Order 7400.11B is publicly available as listed
in the ADDRESSES section of this document. FAA Order 7400.11B lists
Class A, B, C, D, and E airspace areas, air traffic service routes, and
reporting points.

The Proposal

    The FAA is proposing an amendment to Title 14 Code of Federal
Regulations (14 CFR) part 71 by amending the Class E airspace extending
upward from 700 feet above the surface at Wayne County Airport,
Wooster, OH, by removing the extension to the east associated with the
Smith non-directional radio beacon. The geographic coordinates of the
airport would also be updated to coincide with the FAA's aeronautical
database. Exclusionary language would be removed as it is no longer
required. Also, the name of the city associated with the airport in the
airspace description would be removed to comply with a change to FAA
Order 7400.2L, Procedures for Handling Airspace Matters.
    This action is necessary due to an airspace review caused by the
decommissioning of the Tiverton VOR as part of the VOR MON Program.
    Class E airspace designations are published in paragraph 6005 of
FAA Order 7400.11B, dated August 3, 2017, and effective September 15,
2017, which is incorporated by reference in 14 CFR 71.1. The Class E
airspace designation listed in this document will be published
subsequently in the Order.

Regulatory Notices and Analyses

    The FAA has determined that this regulation only involves an
established body of technical regulations for which frequent and
routine amendments are necessary to keep them operationally current, is
non-controversial and unlikely to result in adverse or negative
comments. It, therefore: (1) Is not a ``significant regulatory action''
under Executive Order 12866; (2) is not a ``significant rule'' under
DOT Regulatory Policies and Procedures (44 FR 11034; February 26,
1979); and (3) does not warrant preparation of a regulatory evaluation
as the anticipated impact is so minimal. Since this is a routine matter
that will only affect air traffic procedures and air navigation, it is
certified that this rule, when promulgated, would not have a
significant economic impact on a substantial number of small entities
under the criteria of the Regulatory Flexibility Act.

Environmental Review

    This proposal will be subject to an environmental analysis in
accordance with FAA Order 1050.1F, ``Environmental Impacts: Policies
and Procedures'' prior to any FAA final regulatory action.

List of Subjects in 14 CFR Part 71

    Airspace, Incorporation by reference, Navigation (air).

The Proposed Amendment

    Accordingly, pursuant to the authority delegated to me, the Federal
Aviation Administration proposes to amend 14 CFR part 71 as follows:

PART 71--DESIGNATION OF CLASS A, B, C, D, AND E AIRSPACE AREAS; AIR
TRAFFIC SERVICE ROUTES; AND REPORTING POINTS

0
1. The authority citation for 14 CFR part 71 continues to read as
follows:

     Authority: 49 U.S.C. 106(f), 106(g); 40103, 40113, 40120; E.O.
10854, 24 FR 9565, 3 CFR, 1959-1963 Comp., p. 389.

Sec.  71.1  [Amended]

0
2. The incorporation by reference in 14 CFR 71.1 of FAA Order 7400.11B,
Airspace Designations and Reporting Points, dated August 3, 2017, and
effective September 15, 2017, is amended as follows:

Paragraph 6005 Class E Airspace Areas Extending Upward From 700
Feet or More Above the Surface of the Earth.

* * * * *

AGL OH E5 Wooster, OH [Amended]

Wayne County Airport, OH
    (Lat. 40[deg]52'29'' N, long. 81[deg]53'18'' W)

    That airspace extending upward from 700 feet above the surface
within a 6.5-mile radius of Wayne County Airport.

    Issued in Fort Worth, Texas, on July 16, 2018.
Walter Tweedy,
Acting Manager, Operations Support Group, ATO Central Service Center.
[FR Doc. 2018-16012 Filed 7-26-18; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register Volume 80, Number 170 (Wednesday, September 2, 2015)]
[Notices]
[Pages 53169-53173]
[FR Doc No: 2015-21744]

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DEPARTMENT OF HOMELAND SECURITY

Federal Emergency Management Agency

[Docket ID FEMA-2015-0001; Internal Agency Docket No. FEMA-B-1531]

Changes in Flood Hazard Determinations

AGENCY: Federal Emergency Management Agency, DHS.

ACTION: Notice.

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SUMMARY: This notice lists communities where the addition or
modification of Base Flood Elevations (BFEs), base flood depths,
Special Flood Hazard Area (SFHA) boundaries or zone designations, or
the regulatory floodway (hereinafter referred to as flood hazard
determinations), as shown on the Flood Insurance Rate Maps (FIRMs), and
where applicable, in the supporting Flood Insurance Study (FIS)
reports, prepared by the Federal Emergency Management Agency (FEMA) for
each community, is appropriate because of new scientific or technical
data. The FIRM, and where applicable, portions of the FIS report, have
been revised to reflect these flood hazard determinations through
issuance of a Letter of Map Revision (LOMR), in accordance with title
44, part 65 of the Code of Federal Regulations (44 CFR part 65). The
LOMR will be used by insurance agents and others to calculate
appropriate flood insurance premium rates for new buildings and the
contents of those buildings. For rating purposes, the currently
effective community number is shown in the table below and must be used
for all new policies and renewals.

DATES: These flood hazard determinations will become effective on the
dates listed in the table below and revise the FIRM panels and FIS
report in effect prior to this determination for the listed
communities.
    From the date of the second publication of notification of these
changes in a newspaper of local circulation, any person has 90 days in
which to request through the community that the Deputy Associate
Administrator for Mitigation reconsider the changes. The flood hazard
determination information may be changed during the 90-day period.

ADDRESSES: The affected communities are listed in the table below.
Revised flood hazard information for each community is available for
inspection at both the online location and the respective community map
repository address listed in the table below. Additionally, the current
effective FIRM and FIS report for each community are accessible online
through the FEMA Map Service Center at www.msc.fema.gov for comparison.
    Submit comments and/or appeals to the Chief Executive Officer of
the community as listed in the table below.

FOR FURTHER INFORMATION CONTACT: Luis Rodriguez, Chief, Engineering
Management Branch, Federal Insurance and Mitigation Administration,
FEMA, 500 C Street SW., Washington, DC 20472,<PHONE_NUMBER>, or
(email<EMAIL_ADDRESS>or visit the FEMA Map Information
eXchange (FMIX) online at www.floodmaps.fema.gov/fhm/fmx_main.html.

SUPPLEMENTARY INFORMATION: The specific flood hazard determinations are
not described for each community in this notice. However, the online
location and local community map repository address where the flood
hazard determination information is available for inspection is
provided.
    Any request for reconsideration of flood hazard determinations must
be submitted to the Chief Executive Officer of the community as listed
in the table below.
    The modifications are made pursuant to section 201 of the Flood
Disaster Protection Act of 1973, 42 U.S.C. 4105, and are in accordance
with the National Flood Insurance Act of 1968, 42 U.S.C. 4001 et seq.,
and with 44 CFR part 65.
    The FIRM and FIS report are the basis of the floodplain management
measures that the community is required either to adopt or to show
evidence of having in effect in order to qualify or remain qualified
for participation in the National Flood Insurance Program (NFIP).
    These flood hazard determinations, together with the floodplain
management criteria required by 44 CFR 60.3, are the minimum that are
required. They should not be construed to mean that the community must
change any existing ordinances that are more stringent in their
floodplain management requirements. The community may at any time enact
stricter requirements of its own or pursuant to policies established by
other Federal, State, or regional entities. The flood hazard
determinations are in accordance with 44 CFR 65.4.
    The affected communities are listed in the following table. Flood
hazard determination information for each community is available for
inspection at both the online location and the respective community map
repository address listed in the table below.

Additionally, the current effective FIRM and FIS report for each
community are accessible online through the FEMA Map Service Center at
www.msc.fema.gov for comparison.

(Catalog of Federal Domestic Assistance No. 97.022, ``Flood
Insurance.'')

    Dated: August 10, 2015.
Roy E. Wright,
Deputy Associate Administrator for Insurance and Mitigation, Department
of Homeland Security, Federal Emergency Management Agency.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                            Chief executive                         Online location of
       State and  county          Location and case No.       officer of         Community map        letter of map       Effective date of    Community
                                                               community          repository             revision            modification         No.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Idaho:
    Ada........................  City Of Eagle            The Honorable       660 East Civic      http://                Nov. 5, 2015.......      160003
                                 (15-10-0917P).            James Reynolds,     Lane, Eagle, ID     www.msc.fema.gov/
                                                           Mayor, City of      83616.              lomc.
                                                           Eagle, 660 East
                                                           Civic Lane,
                                                           Eagle, ID 83616.
    Ada........................  Unincorporated areas of  The Honorable Dave  200 West Front      http://                Nov. 5, 2015.......      160001
                                  Ada County               Case, District      Street 3rd Floor,   www.msc.fema.gov/
                                 (15-10-0917P).            Commissioner, Ada   Boise, ID 83702.    lomc.
                                                           County, 200 W
                                                           Front Street, 3rd
                                                           Floor, Boise, ID
                                                           83702.
    Ada........................  Unincorporated areas     The Honorable Dave  200 West Front      http://                Nov. 6, 2015.......      160001
                                  of, Ada County           Case, District      Street, 3rd         www.msc.fema.gov/
                                 (15-10-0733P).            Commissioner, Ada   Floor, Boise, ID    lomc.
                                                           County, 200 West    83702.
                                                           Front Street, 3rd
                                                           Floor, Boise, ID
                                                           83702.
    Ada........................  Unincorporated areas of  The Honorable Dave  200 West Front      http://                Oct. 14, 2015......      160001
                                  Ada County               Case, District      Street, 3rd         www.msc.fema.gov/
                                 (15-10-0807P).            Commissioner, Ada   Floor, Boise, ID    lomc.
                                                           County, 200 West    83702.
                                                           Front Street, 3rd
                                                           Floor, Boise, ID
                                                           83702.
    Kootenai...................  Unincorporated areas of  Mr. David Stewart   Assessors           http://                Oct. 29, 2015......      160076
                                  Kootenai County          Chairman, Board     Department,         www.msc.fema.gov/
                                 (15-10-0478P).            of County           Kootenai County     lomc.
                                                           Commissioners,      Court House, 451
                                                           451 Government      Government Way,
                                                           Way, Coeur          Coeur d'Alene, ID
                                                           d'Alene, ID 83816.  83816.
    Teton......................  Unincorporated areas of  The Honorable Bill  89 N Main, Suite    http://                Oct. 16, 2015......      160230
                                  Teton County             Leake Chair,        6, P. O. Box 763,   www.msc.fema.gov/
                                 (15-10-0131P).            Board of Teton      Driggs, ID 83422.   lomc.
                                                           County
                                                           Commissioners,
                                                           Teton County
                                                           Courthouse, 150
                                                           Courthouse Drive,
                                                           Driggs, ID 83422.
Illinois:
    Adams......................  City Of Quincy           The Honorable Kyle  Quincy City Hall,   http://                Oct. 20, 2015......      170003
                                 (14-05-8464P).            A. Moore, Mayor,    730 Maine Street,   www.msc.fema.gov/
                                                           City of Quincy,     Quincy, IL 62301.   lomc.
                                                           730 Main Street,
                                                           Quincy, IL 62301.
    Kane.......................  City Of Elgin            The Honorable Dave  Public Works        http://                Nov. 3, 2015.......      170087
                                 (15-05-1616P).            Kaptain, Mayor,     Department,         www.msc.fema.gov/
                                                           City of Elgin,      Engineering         lomc.
                                                           150 Dexter Court,   Department, 150
                                                           Elgin, IL 60120.    Dexter Court,
                                                                               Elgin, IL 60120.
    Kane.......................  Unincorporated areas of  The Honorable       Kane County         http://                Nov. 3, 2015.......      170896
                                  Kane County              Christopher         Government Center   www.msc.fema.gov/
                                 (15-05-1616P).            Lauzen, Kane        Building A, Water   lomc.
                                                           County Chairman,    Resources
                                                           Kane County         Department, 719
                                                           Government          South Batavia
                                                           Center, 719 South   Avenue, Geneva,
                                                           Batavia Ave.        IL 60134.
                                                           Building A,
                                                           Geneva, IL 60134.
Indiana:

    Allen......................  City Of Fort Wayne       The Honorable Tom   200 East Berry      http://                Nov. 3, 2015.......      180003
                                 (15-05-3985P).            Henry, Mayor,       Street, Fort        www.msc.fema.gov/
                                                           City of Fort        Wayne, IN 46802.    lomc.
                                                           Wayne, 200 East
                                                           Berry Street,
                                                           Suite 420, Fort
                                                           Wayne, IN 46802.
    Allen......................  Unincorporated areas of  Mr. F. Nelson       200 East Berry      http://                Nov. 3, 2015.......      180302
                                  Allen County             Peters, Allen       Street, Fort        www.msc.fema.gov/
                                 (15-05-3985P).            County              Wayne, IN 46802.    lomc.
                                                           Commissioner,
                                                           Citizens Square,
                                                           200 East Berry
                                                           Street, Suite
                                                           410, Fort Wayne,
                                                           IN 46802.
    Rush.......................  City Of Rushville        The Honorable       Rush County         http://                Nov. 11, 2015......      180223
                                 (15-05-3870X).            Michael P. Pavey,   Courthouse, Area    www.msc.fema.gov/
                                                           Mayor, City of      Plan Commission,    lomc.
                                                           Rushville, 133      Room 211, 101
                                                           West First          East 2nd Street,
                                                           Street,             Rushville, IN
                                                           Rushville, IN       46173.
                                                           46173.
    Rush.......................  Unincorporated areas of  Mr. Bruce Levi,     Rush County         http://                Nov. 11, 2015......      180421
                                  Rush County              Chairman, Rush      Courthouse, Area    www.msc.fema.gov/
                                 (15-05-3870X).            County Board of     Plan Commission,    lomc.
                                                           Commissioners,      Room 211, 101
                                                           Rush County         East 2nd Street,
                                                           Courthouse, 101     Rushville, IN
                                                           East 2nd Street,    46173.
                                                           Room 102,
                                                           Rushville, IN
                                                           46173.
Kansas:
    Shawnee....................  Unincorporated areas of  The Honorable       200 Southeast 7th   http://                Nov. 10, 2015......      200331
                                  Shawnee County           Kevin Cook,         Street, County      www.msc.fema.gov/
                                 (15-07-0760P).            Chair--Shawnee      Courthouse,         lomc.
                                                           County              Topeka, KS 66603.
                                                           Commissioners,
                                                           County
                                                           Courthouse, 200
                                                           Southeast 7th
                                                           Street, Topeka,
                                                           KS 66603.
Missouri:
    Jefferson..................  City Of Crystal City     The Honorable       130 Mississippi     http://                Nov. 9, 2015.......      290189
                                 (15-07-0050P).            Thomas V Schilly,   Avenue, Debbie      www.msc.fema.gov/
                                                           Mayor, City of      Johns, Crystal      lomc.
                                                           Crystal City, 130   City, MO 63019.
                                                           Mississippi
                                                           Avenue, Crystal
                                                           City, MO 63019.
    Jefferson..................  City Of Festus           The Honorable Mike  950 North Fifth     http://                Nov. 9, 2015.......      290191
                                 (15-07-0050P).            Cage, Mayor, City   Street, Festus,     www.msc.fema.gov/
                                                           of Festus, 711      MO 63028.           lomc.
                                                           West Main,
                                                           Festus, MO 63028.
    Scott......................  City Of Scott City       The Honorable Tim   c/o Building        http://                Oct. 14, 2015......      290414
                                 (15-07-0234P).            Porch, Mayor,       Inspector Robert    www.msc.fema.gov/
                                                           City of Scott       Hood, 215 Chester   lomc.
                                                           City, 215 Chester   Avenue, Scott
                                                           Avenue, City of     City, MO 63780.
                                                           Scott City, MO
                                                           63780.
    Scott......................  Unincorporated areas of  The Honorable       131 South           http://                Oct. 14, 2015......      290837
                                  Scott County             Jamie Burger,       Winchester          www.msc.fema.gov/
                                 (15-07-0234P).            Scott County        Street, P. O. Box   lomc.
                                                           Presiding           245, Benton, MO
                                                           Commissioner, 131   63736.
                                                           South Winchester
                                                           Street, Benton,
                                                           Missouri 63736.
Ohio:
    Cuyahoga...................  City Of Strongsville     The Honorable       City Hall, 16099    http://                Nov. 6, 2015.......      390132
                                 (15-05-3955P).            Thomas P.           Foltz Parkway,      www.msc.fema.gov/
                                                           Perciak, Mayor,     Strongsville, OH    lomc.
                                                           City of             44149.
                                                           Strongsville,
                                                           16099 Foltz
                                                           Parkway,
                                                           Strongsville, OH
                                                           44149.

    Lorain.....................  City Of Elyria           The Honorable       City Hall, Suite    http://                Oct. 20, 2015......      390350
                                 (15-05-2448P).            Holly C. Brinda,    101, 131 Court      www.msc.fema.gov/
                                                           Mayor, City of      Street, Elyria,     lomc.
                                                           Elyria, City        OH 44035.
                                                           Hall, 3rd Floor,
                                                           131 Court Street,
                                                           Elyria, OH 44035.
Oregon:
    Multnomah..................  City Of Portland         The Honorable       1221 SW 4th         http://                Nov. 13, 2015......      410183
                                 (15-10-0392P).            Charlie Hales,      Avenue, Room 230,   www.msc.fema.gov/
                                                           Mayor, City of      Portland, OR        lomc.
                                                           Portland, 1221 SW   97204.
                                                           4th Avenue, Room
                                                           340, Portland, OR
                                                           97204.
    Multnomah..................  City Of Troutdale        The Honorable Doug  219 East Historic   http://                Oct. 28, 2015......      410184
                                 (15-10-0523P).            Daoust, Mayor,      Columbia River      www.msc.fema.gov/
                                                           City of             Highway,            lomc.
                                                           Troutdale, 219      Troutdale, OR
                                                           East Historic       97060.
                                                           Columbia River
                                                           Highway,
                                                           Troutdale, OR
                                                           97060.
Texas:
    Dallas.....................  City Of Hutchins         The Honorable       City Hall, 321      http://                Nov. 6, 2015.......      480179
                                 (14-06-3724P).            Mario Vasquez,      North Main          www.msc.fema.gov/
                                                           Mayor, City of      Street, Hutchins,   lomc.
                                                           Hutchins, 321       TX 75141.
                                                           North Main
                                                           Street, Hutchins,
                                                           TX 75141.
    Dallas.....................  City Of Wilmer           The Honorable       City Hall, 300      http://                Nov. 6, 2015.......      480190
                                 (14-06-3724P).            Casey Burgess,      Country Club        www.msc.fema.gov/
                                                           Mayor, City of      Road, Wylie, TX     lomc.
                                                           Wilmer, 128 North   75098.
                                                           Dallas Avenue,
                                                           Wilmer, TX 75172.
    Dallas.....................  Unincorporated areas of  The Honorable Clay  Dallas County       http://                Nov. 6, 2015.......      480165
                                  Dallas County            L. Jenkins,         Records Building,   www.msc.fema.gov/
                                 (14-06-3724P).            Presiding           509 Main Street,    lomc.
                                                           Officer, County     Dallas, TX 75202.
                                                           Commissioner
                                                           Court, 411 Elm
                                                           Street, Dallas,
                                                           TX 75202.
    Denton.....................  Town Of Hickory Creek    The Honorable John  1075 Ronald Reagan  http://                Oct. 28, 2015......      481150
                                 (14-06-4263P).            Smith, Mayor,       Avenue, Hickory     www.msc.fema.gov/
                                                           Town of Hickory     Creek, TX 75065.    lomc.
                                                           Creek, 1075
                                                           Ronald Reagan
                                                           Avenue, Hickory
                                                           Creek, TX 75065.
    Denton.....................  Unincorporated areas of  The Honorable Mary  1505 East McKinney  http://                Oct. 28, 2015......      480774
                                  Denton County            Horn, County        Street, Suite       www.msc.fema.gov/
                                 (14-06-4263P).            Judge, Denton       175, Denton, TX     lomc.
                                                           County, 1450 East   76209.
                                                           McKinney Street,
                                                           Denton, Texas
                                                           76209.
    Tarrant....................  City Of Bedford          The Honorable Jim   Public Works        http://                Sept. 20, 2015.....      480585
                                 (14-06-4249P).            Griffin, Mayor,     Office, 1813        www.msc.fema.gov/
                                                           City of Bedford,    Reliance Parkway,   lomc.
                                                           City Hall, 2000     Bedford, TX 76021.
                                                           Forest Ridge
                                                           Drive, Bedford,
                                                           TX 76021.
    Tarrant....................  City Of Colleyville      The Honorable       Public Works        http://                Sept. 20, 2015.....      480590
                                 (14-06-4249P).            David Kelly,        Office, 100 Main    www.msc.fema.gov/
                                                           Mayor, City of      Street,             lomc.
                                                           Colleyville, City   Colleyville, TX
                                                           Hall, 100 Main      76034.
                                                           Street,
                                                           Colleyville, TX
                                                           76034.

    Tarrant....................  City Of Euless           The Honorable       Planning and        http://                Sept. 20, 2015.....      480593
                                 (14-06-4249P).            Linda Martin,       Engineering         www.msc.fema.gov/
                                                           Mayor, City of      Building, 201       lomc.
                                                           Euless, City        North Ector
                                                           Hall, 201 North     Drive, Euless, TX
                                                           Ector Drive,        76039.
                                                           Euless, TX 76039.
Washington:
    Pacific....................  Unincorporated areas of  The Honorable Lisa  300 Memorial        http://                Sept. 22, 2015.....      530126
                                  Pacific County           Ayers, Pacific      Drive, South        www.msc.fema.gov/
                                 (15-10-0999X).            County              Bend, WA 98586.     lomc.
                                                           Commissioner,
                                                           District 3, P. O.
                                                           Box 187, 1216
                                                           West Robert Bush
                                                           Drive, South
                                                           Bend, WA 98586.
Wisconsin:
    Trempealeau................  Village Of Strum         The Honorable Dean  202 South Fifth     http://                Nov. 13, 2015......      555583
                                 (15-05-2619P).            Boehne,             Avenue, Strum, WI   www.msc.fema.gov/
                                                           President,          54770.              lomc.
                                                           Village of Strum,
                                                           202 South Fifth
                                                           Avenue, P. O. Box
                                                           25, Strum, WI
                                                           54770.
    Trempealeau................  Unincorporated areas of  The Honorable       36245 Main Street,  http://                Nov. 13, 2015......      555585
                                  Trempealeau County       Richard Miller,     Whitehall, WI       www.msc.fema.gov/
                                 (15-05-2619P).            County Board        54773.              lomc.
                                                           Chairman
                                                           Trempealeau
                                                           County, 36245
                                                           Main Street,
                                                           Whitehall, WI
                                                           54773.
--------------------------------------------------------------------------------------------------------------------------------------------------------

[FR Doc. 2015-21744 Filed 9-1-15; 8:45 am]
 BILLING CODE 9110-12-P


[Federal Register Volume 78, Number 19 (Tuesday, January 29, 2013)]
[Notices]
[Pages 6161-6167]
[FR Doc No: 2013-01811]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-68708; File No. SR-NYSEArca-2012-131]

Self-Regulatory Organizations; NYSE Arca, Inc.; Order Granting
Approval of Proposed Rule Change Relating to Listing and Trading of
Shares of the Horizons S&P 500 Covered Call ETF, Horizons S&P Financial
Select Sector Covered Call ETF, and Horizons S&P Energy Select Sector
Covered Call ETF Under NYSE Arca Equities Rule 5.2(j)(3)

January 23, 2013.

I. Introduction

    On November 21, 2012, NYSE Arca, Inc. (``Exchange'' or ``NYSE
Arca'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'' or ``Exchange Act'') \1\ and Rule 19b-4

thereunder,\2\ a proposed rule change to list and trade shares
(``Shares'') of the Horizons S&P 500 Covered Call ETF, Horizons S&P
Financial Select Sector Covered Call ETF, and Horizons S&P Energy
Select Sector Covered Call ETF (each, a ``Fund,'' and collectively,
``Funds'') under NYSE Arca Equities Rule 5.2(j)(3). The proposed rule
change was published in the Federal Register on December 10, 2012.\3\
The Commission received no comments on the proposal. This order grants
approval of the proposed rule change.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 68351 (December 4,
2012), 77 FR 73500 (``Notice'').
---------------------------------------------------------------------------

II. Description of the Proposal

    The Exchange proposes to list and trade the Shares of the Funds
under Commentary .01 to NYSE Arca Equities Rule 5.2(j)(3), which
governs the listing and trading of Investment Company Units. The Shares
will be offered by Exchange Traded Concepts Trust II (``Trust''), which
is organized as a Delaware statutory trust and is registered with the
Commission as an open-end management investment company.\4\ The
investment adviser to the Funds is Exchange Traded Concepts, LLC
(``Adviser''), and the sub-adviser to the Funds is Horizons ETFs
Management (USA) LLC (``Sub-Adviser'').\5\ Foreside Fund Services, LLC
is the principal underwriter and distributor of the Funds' Shares. Citi
Fund Services Ohio, Inc. will serve as administrator for the Funds;
Citibank, NA will serve as custodian for the Funds; and Citi Fund
Services Ohio, Inc. will serve as transfer agent for the Funds.
---------------------------------------------------------------------------

    \4\ The Trust is registered under the Investment Company Act of
1940 (``1940 Act''). On September 10, 2012, the Trust filed with the
Commission an amendment to its Form N-1A under the Securities Act of
1933 and under the 1940 Act relating to the Funds (File Nos. 333-
180871 and 811-22700) (``Registration Statement''). In addition, the
Commission has issued an order granting certain exemptive relief to
the Trust under the 1940 Act. See Investment Company Act Release No.
29065 (December 1, 2009) (File No. 812-13638).
    \5\ The Adviser is affiliated with a broker-dealer and has
implemented a fire wall with respect to its broker-dealer affiliate
regarding access to information concerning the portfolio holdings of
the Funds. The Sub-Adviser is also affiliated with a broker-dealer
and has implemented a fire wall with respect to its broker dealer
affiliate regarding access to information concerning the portfolio
holdings of the Funds. In the event (a) the Adviser or Sub-Adviser
becomes newly affiliated with a broker-dealer, or (b) any new
adviser or sub-adviser becomes affiliated with a broker-dealer, it
will implement a fire wall with respect to such broker-dealer
regarding access to information concerning the portfolio holdings of
the Funds, and will be subject to procedures designed to prevent the
use and dissemination of material, non-public information regarding
such portfolios.
---------------------------------------------------------------------------

    As described below, each Fund will seek investment results that,
before fees and expenses, generally correspond to the performance of a
specified index (each, an ``Underlying Index'') provided by S&P Dow
Jones Indices LLC (``Index Provider'').\6\ Each Underlying Index is
comprised of all the equity securities in one of the S&P 500 Index, S&P
Financial Select Sector Index, or S&P Energy Select Sector Index (each,
a ``Reference Index'') and short (written) call options on each of the
option eligible securities in the relevant Reference Index that meet,
among others, stock and option price criteria of the Underlying Index
methodology.\7\
---------------------------------------------------------------------------

    \6\ Each of the Underlying Indices is provided by the Index
Provider, which is unaffiliated with the Funds, the Adviser, or the
Sub-Adviser. The Index Provider maintains, calculates, and publishes
information regarding each of the Underlying Indices. The Index
Provider is not a broker-dealer and is not affiliated with a broker-
dealer and has implemented procedures designed to prevent the use
and dissemination of material, non-public information regarding the
Underlying Indices.
    \7\ The Underlying Index methodology is available at
www.standardandpoors.com/indices. The Exchange provides that, as of
October 26, 2012, such criteria include, among others, that no call
options will be written if the equity security price is less than
$10, and no call options will be written at prices below $0.15. The
Index Provider may amend the methodology from time to time. In such
case, the methodology would be updated accordingly on the Web site.
---------------------------------------------------------------------------

    The Exchange submitted this proposed rule change because the
Underlying Indices for the Funds do not meet all of the ``generic''
listing requirements of Commentary .01(a)(A) to NYSE Arca Equities Rule
5.2(j)(3) applicable to the listing of Investment Company Units based
upon an index of ``US Component Stocks.'' \8\ Specifically, Commentary
.01(a)(A) to NYSE Arca Equities Rule 5.2(j)(3) \9\ sets forth the
requirements to be met by components of an index or portfolio of US
Component Stocks. As described further below, each of the Underlying
Indices consists of all the equity securities in one of the Reference
Indices and short (written) call options on each of the option eligible
securities in the relevant Reference Index that meet, among others, the
stock and option price criteria of the Underlying Index methodology.
All securities in the Reference Indices are listed and traded on a U.S.
national securities exchange and the options on the option eligible
securities of companies in the Reference Indices are traded on a U.S.
national options exchange. The market value of the call options will
not represent more than 10% of the total weight of any of the
Underlying Indices. The Exchange has represented that the Underlying
Indices meet all requirements of NYSE Arca Equities Rule 5.2(j)(3) and
Commentary .01(a)(A) thereto, except that the Underlying Indices
include call options, which are not NMS Stocks as defined in Rule 600
of Regulation NMS.\10\
---------------------------------------------------------------------------

    \8\ NYSE Arca Equities Rule 5.2(j)(3) provides that the term
``US Component Stock'' shall mean an equity security that is
registered under Sections 12(b) or 12(g) of the Exchange Act or an
American Depositary Receipt, the underlying equity security of which
is registered under Sections 12(b) or 12(g) of the Exchange Act.
    \9\ Commentary .01(a)(A) to NYSE Arca Equities Rule 5.2(j)(3)
states, in part, that the components of an index of US Component
Stocks, upon the initial listing of a series of Units pursuant to
Rule 19b-4(e) under the Exchange Act shall be NMS Stocks as defined
in Rule 600 of Regulation NMS under the Exchange Act. See 17 CFR
242.600(b)(47) (defining ``NMS Stock'' as any NMS Security other
than an option).
    \10\ See id.
---------------------------------------------------------------------------

Horizons S&P 500 Covered Call ETF

    The Horizons S&P 500 Covered Call ETF will seek investment results
that, before fees and expenses, generally correspond to the performance
of the Fund's Underlying Index, which is the S&P 500 Stock Covered Call
Index. The Fund seeks correlation of 0.95 or better between its
performance and the performance of its Underlying Index. A figure of
1.00 would represent perfect correlation. As described below, the
Underlying Index is comprised of all the equity securities \11\ in the
Fund's Reference Index, which is the S&P 500 Index, and short (written)
call options on each of the option eligible securities in the Reference
Index that meet, among others, the stock and option price criteria of
the Underlying Index methodology.\12\ The Fund will invest at least 80%
of its total assets in securities that comprise its Underlying Index.
---------------------------------------------------------------------------

    \11\ ``Equity securities'' includes all U.S. common equities
listed on the Exchange, the New York Stock Exchange, NYSE MKT, the
NASDAQ Global Select Market, the NASDAQ Select Market, and the
NASDAQ Capital Market. Business development companies and real
estate investment trusts (``REITs'') are eligible for inclusion as
equity securities, with the exception of mortgage REITs.
    \12\ See note 7, supra.
---------------------------------------------------------------------------

    The Reference Index for the Fund is a float-adjusted market
capitalization weighted index containing equity securities of 500
industrial, information technology, utility, and financial companies
amongst other Global Industry Classification Standard
(``GICS[supreg]'') sectors, regarded as generally representative of the
U.S. stock market. A float-adjusted market capitalization weighted
index weights each index component according to its market
capitalization, using the number of shares that are readily available
for purchase on the open market.
    The Underlying Index for the Fund measures the performance of a

hypothetical portfolio that employs a covered call strategy. It
consists of long positions in companies in the Reference Index and out-
of-the-money call options \13\ that are written (sold) systematically
on the option eligible securities of companies in the Reference Index
that meet, among others, the stock and option price criteria of the
Underlying Index methodology.
---------------------------------------------------------------------------

    \13\ An ``out-of-the-money'' call option is one in which the
exercise (or ``strike'') price of the option is above the market
price of the security.
---------------------------------------------------------------------------

    The Fund will be an index fund that employs a ``passive
management'' investment strategy in seeking to achieve its objective.
The Adviser's strategy will consist of holding an equity portfolio
indexed to the Reference Index and writing (selling) covered call
options on these equity securities, which options will be indexed to
the Underlying Index, generally one standard deviation ``out-of-the-
money.'' \14\ Options are written systematically ``out-of-the-money''
in accordance with the index methodology based on the prevailing
individual level of volatility for each of the equity securities. The
Underlying Index provides a benchmark measure of the total return of
this hypothetical portfolio.
---------------------------------------------------------------------------

    \14\ A covered call strategy is generally considered to be an
investment strategy in which an investor buys a security, and sells
a call option that corresponds to the security. In return for a
premium, the Fund will give the purchaser of the option written by
the Fund either the right to buy the security from the Fund at an
exercise price or the right to receive a cash payment equal to the
difference between the value of the security and the exercise (or
``strike'') price, if the value is above the exercise price on or
before the expiration date of the option. In addition, the covered
call options hedge against a decline in the price of the securities
on which they are written to the extent of the premium the Fund
receives. A covered call strategy is generally used in a neutral-to-
bullish market environment, where a slow and steady rise in market
prices is anticipated.
---------------------------------------------------------------------------

    Because a covered call strategy generates income in the form of
premiums on the written options, the Underlying Index is generally
expected to provide higher total returns with lower volatility than the
Reference Index in most market environments, with the exception of when
the equity market is rallying rapidly. The options in the Underlying
Index will be traded on national securities exchanges. As of August 31,
2012, the Reference Index and Underlying Index included common stocks
of 500 companies, 499 of which are option eligible, with a market
capitalization range of between approximately $1 billion and $622
billion. As of that date, the Underlying Index also included short
(written) call options on 434 option eligible securities of the
Reference Index, representing 0.6% of the total weight \15\ of the
Underlying Index.
---------------------------------------------------------------------------

    \15\ This calculation is based on the absolute value of the
short call option position which has a negative mark-to-market
value.
---------------------------------------------------------------------------

    The Fund will generally use a replication methodology, meaning it
will invest in all of the securities comprising the Underlying Index in
proportion to the weightings in the Underlying Index. However, the Fund
may from time-to-time utilize a sampling methodology under various
circumstances where it may not be possible or practicable to purchase
all of the equity securities and write (sell) all of the call options
comprising the Underlying Index.
    The Fund will concentrate its investments (i.e., hold 25% or more
of its total assets) in a particular industry or group of industries to
approximately the same extent that the Underlying Index is so
concentrated. The Fund will be non-diversified under the 1940 Act and,
therefore, may invest a greater percentage of its assets in a
particular issue in comparison to a ``diversified'' fund. Moreover, in
pursuing its objective, the Fund may hold the securities of a single
issuer in an amount exceeding 10% of the outstanding voting securities
of the issuer, subject to restrictions imposed by the Internal Revenue
Code of 1986, as amended (``Code'').

Horizons S&P Financial Select Sector Covered Call ETF

    The Horizons S&P Financial Select Sector Covered Call ETF will seek
investment results that, before fees and expenses, generally correspond
to the performance of the Fund's Underlying Index, which is the S&P 500
Financial Select Sector Stock Covered Call Index. The Fund seeks
correlation of 0.95 or better between its performance and the
performance of its Underlying Index. A figure of 1.00 would represent
perfect correlation. As described below, the Underlying Index is
comprised of all the equity securities \16\ in the Fund's Reference
Index, which is the S&P Financial Select Sector Index, and short
(written) call options on the option eligible securities of companies
in the Reference Index that meet, among others, the stock and option
price criteria of the Underlying Index methodology.\17\ The Fund will
invest at least 80% of its total assets in the securities that comprise
its Underlying Index.
---------------------------------------------------------------------------

    \16\ See note 11, supra.
    \17\ See note 7, supra.
---------------------------------------------------------------------------

    The Reference Index for the Fund is a rules-based, modified market
capitalization weighted index that is designed to track the movements
of public companies that are components of the S&P 500 Index and are
classified in the GICS[supreg] sector, Financials. A modified market
capitalization weighted index first weights each index component
according to its market capitalization, using the number of shares that
are readily available for purchase on the open market, then imposes
limits on the weight of individual index components and redistributes
any excess weight across the remaining index components. A wide array
of diversified financial service firms are featured in this sector with
business lines ranging from investment management to commercial and
investment banking.
    The Underlying Index for the Fund measures the performance of a
hypothetical portfolio that employs a covered call strategy. It
consists of long positions in companies in the Reference Index and out-
of-the-money call options \18\ that are written (sold) systematically
on the option eligible securities of companies in the Reference Index
that meet, among others, the stock and option price criteria of the
Underlying Index methodology.
---------------------------------------------------------------------------

    \18\ See note 13, supra.
---------------------------------------------------------------------------

    The Fund will be an index fund that employs a ``passive
management'' investment strategy in seeking to achieve its objective.
The Adviser's strategy will consist of holding an equity portfolio
indexed to the Reference Index and writing (selling) covered call
options on these equity securities indexed to the Underlying Index,
which options will be generally one standard deviation ``out-of-the-
money.'' \19\ Options are written systematically ``out-of-the-money''
in accordance with the index methodology based on the prevailing
individual level of volatility for each of the equity securities. The
Underlying Index provides a benchmark measure of the total return of
this hypothetical portfolio.
---------------------------------------------------------------------------

    \19\ See note 14, supra.
---------------------------------------------------------------------------

    Because a covered call strategy generates income in the form of
premiums on the written options, the Underlying Index is generally
expected to provide higher total returns with lower volatility than the
Reference Index in most market environments, with the exception of when
the equity market is rallying rapidly. The options in the Underlying
Index will be traded on national securities exchanges. As of August 31,
2012, the Reference Index and Underlying Index included common stocks
of 81 companies, of

which all 81 are option eligible, with a market capitalization range of
between approximately $2 billion and $181 billion. As of that date, the
Underlying Index also included short (written) call options on 65
option eligible securities of the Reference Index, representing 0.7% of
the total weight \20\ of the Underlying Index.
---------------------------------------------------------------------------

    \20\ See note 15, supra.
---------------------------------------------------------------------------

    The Fund will generally use a replication methodology, meaning it
will invest in all of the securities comprising the Underlying Index in
proportion to the weightings in the Underlying Index. However, the Fund
may from time-to-time utilize a sampling methodology under various
circumstances where it may not be possible or practicable to purchase
all of the equity securities and write (sell) all of the call options
comprising the Underlying Index.
    The Fund will concentrate its investments (i.e., hold 25% or more
of its total assets) in a particular industry or group of industries to
approximately the same extent that the Underlying Index is so
concentrated. The Fund will be non-diversified under the 1940 Act and,
therefore, may invest a greater percentage of its assets in a
particular issue in comparison to a ``diversified'' fund. Moreover, in
pursuing its objective, the Fund may hold the securities of a single
issuer in an amount exceeding 10% of the outstanding voting securities
of the issuer, subject to restrictions imposed by the Code.

Horizons S&P Energy Select Sector Covered Call ETF

    The Horizons S&P Energy Select Sector Covered Call ETF will seek
investment results that, before fees and expenses, generally correspond
to the performance of the Fund's Underlying Index, which is the S&P 500
Energy Select Sector Stock Covered Call Index. The Fund seeks
correlation of 0.95 or better between its performance and the
performance of its Underlying Index. A figure of 1.00 would represent
perfect correlation. As described below, the Underlying Index is
comprised of all the equity securities \21\ in the Fund's Reference
Index, which is the S&P Energy Select Sector Index, and short (written)
call options on the option eligible securities of companies in the
Reference Index that meet, among others, the stock and option price
criteria of the Underlying Index methodology.\22\ The Fund will invest
at least 80% of its total assets in the securities that comprise its
Underlying Index.
---------------------------------------------------------------------------

    \21\ See note 11, supra.
    \22\ See note 7, supra.
---------------------------------------------------------------------------

    The Reference Index for the Fund is a rules-based, modified market
capitalization weighted index that is designed to track the movements
of public companies that are components of the S&P 500 Index and are
classified in the GICS[supreg] sector, Energy. A modified market
capitalization weighted index first weights each index component
according to its market capitalization, using the number of shares that
are readily available for purchase on the open market, then imposes
limits on the weight of individual index components and redistributes
any excess weight across the remaining index components. Energy
companies in this sector primarily develop and produce crude oil and
natural gas, and provide drilling and other energy-related services.
    The Underlying Index for the Fund measures the performance of a
hypothetical portfolio that employs a covered call strategy. It
consists of long positions in companies in the Reference Index and out-
of-the-money call options \23\ that are written (sold) systematically
on the option eligible securities of companies in the Reference Index
that meet, among others, the stock and option price criteria of the
Underlying Index methodology.
---------------------------------------------------------------------------

    \23\ See note 13, supra.
---------------------------------------------------------------------------

    The Fund will be an index fund that employs a ``passive
management'' investment strategy in seeking to achieve its objective.
The Adviser's strategy will consist of holding an equity portfolio
indexed to the Reference Index and writing (selling) covered call
options on these equity securities, which options will be indexed to
the Underlying Index, generally one standard deviation ``out-of-the-
money.'' \24\ Options are written systematically ``out-of-the-money''
in accordance with the index methodology based on the prevailing
individual level of volatility for each of the equity securities. The
Underlying Index provides a benchmark measure of the total return of
this hypothetical portfolio.
---------------------------------------------------------------------------

    \24\ See note 14, supra.
---------------------------------------------------------------------------

    Because a covered call strategy generates income in the form of
premiums on the written options, the Underlying Index is generally
expected to provide higher total returns with lower volatility than the
Reference Index in most market environments, with the exception of when
the equity market is rallying rapidly. The options in the Underlying
Index will be traded on national securities exchanges. As of August 31,
2012, the Reference Index and Underlying Index included common stocks
of 45 companies, of which all 45 are option eligible, with a market
capitalization range of between approximately $1 billion and $276
billion. As of that date, the Underlying Index also included short
(written) call options on 42 option eligible securities of the
Reference Index, representing 0.6% of the total weight \25\ of the
Underlying Index.
---------------------------------------------------------------------------

    \25\ See note 15, supra.
---------------------------------------------------------------------------

    The Fund generally will use a replication methodology, meaning it
will invest in all of the securities comprising the Underlying Index in
proportion to the weightings in the Underlying Index. However, the Fund
may from time to time utilize a sampling methodology under various
circumstances where it may not be possible or practicable to purchase
all of the equity securities and write (sell) all of the call options
comprising the Underlying Index.
    The Fund will concentrate its investments (i.e., hold 25% or more
of its total assets) in a particular industry or group of industries to
approximately the same extent that the Underlying Index is so
concentrated. The Fund will be non-diversified under the 1940 Act and,
therefore, may invest a greater percentage of its assets in a
particular issue in comparison to a ``diversified'' fund. Moreover, in
pursuing its objective, the Fund may hold the securities of a single
issuer in an amount exceeding 10% of the outstanding voting securities
of the issuer, subject to restrictions imposed by the Code.

Investment Guidelines

    Each Fund will write (sell) call options on the option eligible
securities of companies in its Reference Index to the same extent as
such short call options are included in its Underlying Index. The Funds
will utilize options in accordance with Rule 4.5 of the Commodity
Exchange Act (``CEA''). The Trust, on behalf of the Funds, has filed a
notice of eligibility for exclusion from the definition of the term
``commodity pool operator'' in accordance with Rule 4.5 so that the
Funds are not subject to registration or regulation as a commodity pool
operator under the CEA.

Other Investments

    Each Fund may invest in short-term instruments, including money
market instruments, on an ongoing basis to provide liquidity for cash
equitization, funding, or under abnormal market conditions. Money
market instruments

are generally short-term investments that may include but are not
limited to: (i) Shares of money market funds; (ii) obligations issued
or guaranteed by the U.S. government, its agencies or instrumentalities
(including government-sponsored enterprises); (iii) negotiable
certificates of deposit, bankers' acceptances, fixed time deposits, and
other obligations of U.S. and foreign banks (including foreign
branches) and similar institutions; (iv) commercial paper rated at the
date of purchase ``Prime-1'' by Moody's or ``A-1'' by S&P, or if
unrated, of comparable quality as determined by the Sub-Adviser; (v)
non-convertible corporate debt securities (e.g., bonds and debentures)
with remaining maturities at the date of purchase of not more than 397
days and that satisfy the rating requirements set forth in Rule 2a-7
under the 1940 Act; and (vi) short-term U.S. dollar-denominated
obligations of foreign banks (including U.S. branches) that, in the
opinion of the Sub-Adviser, are of comparable quality to obligations of
U.S. banks which may be purchased by a Fund. Any of these instruments
may be purchased on a current or a forward-settled basis.
    Each Fund may invest in the securities of other investment
companies, subject to applicable limitations under Section 12(d)(1) of
the 1940 Act.
    A Fund may hold up to an aggregate amount of 15% of its net assets
in illiquid securities (calculated at the time of investment),
including Rule 144A Securities. The Funds will monitor their portfolio
liquidity on an ongoing basis to determine whether, in the light of
current circumstances, an adequate level of liquidity is being
maintained, and will consider taking appropriate steps in order to
maintain adequate liquidity if, through a change in values, net assets,
or other circumstances, more than 15% of a Fund's net assets are held
in illiquid securities and other illiquid assets.
    Each Fund will seek to qualify for treatment as a regulated
investment company under the Code.
    Additional information regarding the Trust, the Funds, and the
Shares, including investment strategies, risks, creation and redemption
procedures, fees, portfolio holdings disclosure policies,
distributions, and taxes, among other things, is included in the Notice
and Registration Statement, as applicable.\26\
---------------------------------------------------------------------------

    \26\ See Notice and Registration Statement, supra notes 3 and 4.
---------------------------------------------------------------------------

III. Discussion and Commission's Findings

    The Commission has carefully reviewed the proposed rule change and
finds that it is consistent with the requirements of Section 6 of the
Act \27\ and the rules and regulations thereunder applicable to a
national securities exchange.\28\ In particular, the Commission finds
that the proposed rule change is consistent with the requirements of
Section 6(b)(5) of the Act,\29\ which requires, among other things,
that the Exchange's rules be designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade, to foster cooperation and coordination with
persons engaged in facilitating transactions in securities, to remove
impediments to and perfect the mechanism of a free and open market and
a national market system, and, in general, to protect investors and the
public interest. The Commission notes that the Funds and the Shares
must comply with the applicable requirements of NYSE Arca Equities
Rules 5.2(j)(3) and 5.5(g)(2) to be listed and traded on the Exchange.
---------------------------------------------------------------------------

    \27\ 15 U.S.C. 78f.
    \28\ In approving this proposed rule change, the Commission
notes that it has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
    \29\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Commission finds that the proposal to list and trade the Shares
on the Exchange is consistent with Section 11A(a)(1)(C)(iii) of the
Act,\30\ which sets forth Congress's finding that it is in the public
interest and appropriate for the protection of investors and the
maintenance of fair and orderly markets to assure the availability to
brokers, dealers, and investors of information with respect to
quotations for, and transactions in, securities. Quotation and last-
sale information for the Shares will be available via the Consolidated
Tape Association (``CTA'') high-speed line. The intra-day, closing, and
settlement prices of the portfolio securities held by the Funds will be
readily available from the securities exchanges trading such
securities, automated quotation systems, published or other public
sources, or on-line information services such as Bloomberg or Reuters.
The value of each Underlying Index will be widely disseminated by one
or more major market data vendors at least every 15 seconds during the
NYSE Arca Core Trading Session (9:30 a.m. to 4:00 p.m., Eastern Time),
and information regarding the components of each Reference Index and
Underlying Index and their percentage weightings will be available from
the Index Provider and major market data vendors. In addition,
quotation and last-sale information for the components of the
Underlying Indices and Reference Indices will be available from the
exchanges on which they trade. An indicative optimized portfolio value
(``IOPV'') for the Shares for each Fund will be widely disseminated at
least every 15 seconds during the NYSE Arca Core Trading Session by one
or more major market data vendors.\31\ On each business day, prior to
commencement of trading of the Shares in the Core Trading Session on
the Exchange, the Funds will disclose on their Web site the securities
and financial instruments in each Fund's portfolio that will form the
basis for each Fund's calculation of net asset value (``NAV'') at the
end of the business day.\32\ Each Fund's NAV will be determined as of
the close of the New York Stock Exchange (``NYSE'') (normally 4:00
p.m., Eastern Time) on each day the NYSE is open for trading. Each
Fund, through the National Securities Clearing Corporation, will make
publicly available on each business day, prior to the opening of
business on the Exchange (currently 9:30 a.m., Eastern Time), a basket
composition file for each Fund, which includes the security names and
share quantities required to be delivered in exchange for that Fund's
Shares, together with estimates and actual cash components, which
basket will represent one Creation Unit of the relevant Fund.\33\
Information regarding market price and trading volume of the Shares
will be continually available on a real-time basis throughout the day
on brokers' computer screens and other electronic services, and
information regarding the previous day's closing price and trading
volume for the Shares will be published daily in the financial section
of newspapers. The Adviser's

Web site will also include a form of the prospectus for the Funds,
information relating to NAV (updated daily), and other quantitative and
trading information.
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    \30\ 15 U.S.C. 78k-1(a)(1)(C)(iii).
    \31\ See NYSE Arca Equities Rule 5.2(j)(3), Commentaries
.01(b)(2) and .01(c). According to the Exchange, several major
market data vendors widely disseminate IOPVs taken from the CTA or
other data feeds. See Notice, supra note 3, at 73505.
    \32\ On a daily basis, each Fund will disclose for each
portfolio security and other financial instrument of the Fund the
following information on the Funds' Web site: ticker symbol (if
applicable), name of securities and financial instruments, number of
shares or dollar value of securities and financial instruments held
in the portfolio, and percentage weighting of the securities and
financial instruments in the portfolio. The Web site information
will be publicly available at no charge.
    \33\ A Creation Unit of each Fund will consist of at least
50,000 Shares, and will be issued and redeemed for securities in
which the Fund invests, cash, or both securities and cash.
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    The Commission further believes that the proposal to list and trade
the Shares is reasonably designed to promote fair disclosure of
information that may be necessary to price the Shares appropriately and
to prevent trading when a reasonable degree of transparency cannot be
assured. The Commission notes that the Exchange will obtain a
representation from the issuer of the Shares that the NAV per Share
will be calculated daily and will be made available to all market
participants at the same time.\34\ If the IOPV or the relevant
Underlying Index value of a Fund is not being disseminated as required,
the Exchange may halt trading during the day in which the disruption
occurs. If the interruption to the dissemination of the applicable IOPV
or Underlying Index value persists past the trading day in which it
occurred, the Exchange will halt trading.\35\ In addition, if the
Exchange becomes aware that the NAV of a Fund is not being disseminated
to all market participants at the same time, it will halt trading in
the Shares of such Fund on the Exchange until such time as the NAV is
available to all market participants. The Exchange states that it has a
general policy prohibiting the distribution of material, non-public
information by its employees. The Exchange states that the Adviser and
the Sub-Adviser are affiliated with broker-dealers and have implemented
a fire wall with respect to their respective broker-dealer affiliates
regarding access to information concerning the portfolio holdings of
the Funds.\36\ The Exchange further states that the Index Provider is
neither a broker-dealer nor affiliated with a broker-dealer, and has
implemented procedures designed to prevent the use and dissemination of
material, non-public information regarding the Underlying Indices. The
Commission notes that the Exchange would be able to obtain information
with respect to the equity securities and options comprising the
Underlying Indices and which will be held by the Funds because such
equity securities and options will be listed and traded on U.S.
national securities exchanges, all of which are members of the
Intermarket Surveillance Group (``ISG'').
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    \34\ See NYSE Arca Equities Rule 5.2(j)(3)(A)(v).
    \35\ With respect to trading halts, the Exchange may consider
all relevant factors in exercising its discretion to halt or suspend
trading in the Shares of a Fund. Trading in Shares of a Fund will be
halted if the circuit breaker parameters in NYSE Arca Equities Rule
7.12 have been reached. Trading also may be halted because of market
conditions or for reasons that, in the view of the Exchange, make
trading in the Shares inadvisable. These may include: (1) the extent
to which trading is not occurring in the securities and/or the
financial instruments comprising the relevant Fund's portfolio; or
(2) whether other unusual conditions or circumstances detrimental to
the maintenance of a fair and orderly market are present.
    \36\ See notes 5 and 6, supra. The Commission also notes that an
investment adviser to an open-end fund is required to be registered
under the Investment Advisers Act of 1940 (``Advisers Act''). As a
result, the Adviser and Sub-Adviser and their related personnel are
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.
In addition, Rule 206(4)-7 under the Advisers Act makes it unlawful
for an investment adviser to provide investment advice to clients
unless such investment adviser has (i) Adopted and implemented
written policies and procedures reasonably designed to prevent
violation, by the investment adviser and its supervised persons, of
the Advisers Act and the Commission rules adopted thereunder; (ii)
implemented, at a minimum, an annual review regarding the adequacy
of the policies and procedures established pursuant to subparagraph
(i) above and the effectiveness of their implementation; and (iii)
designated an individual (who is a supervised person) responsible
for administering the policies and procedures adopted under
subparagraph (i) above.
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    The Exchange represents that the Shares are deemed to be equity
securities, thus rendering trading in the Shares subject to the
Exchange's existing rules governing the trading of equity securities.
In support of this proposal, the Exchange has made representations,
including:
    (1) The continued listing standards under NYSE Arca Equities Rules
5.2(j)(3) and 5.5(g)(2) applicable to Investment Company Units shall
apply to the Shares.
    (2) The Exchange has appropriate rules to facilitate transactions
in the Shares during all trading sessions.
    (3) The Exchange's surveillance procedures applicable to derivative
products, which include Investment Company Units, 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. All equity securities and options comprising
the Underlying Indices are listed and traded on U.S. exchanges, which
are members of ISG.
    (4) Prior to the commencement of trading, the Exchange will inform
its Equity Trading Permit Holders (``ETP Holders'') in an Information
Bulletin of the special characteristics and risks associated with
trading the Shares. Specifically, the Information Bulletin will discuss
the following: (a) the procedures for purchases and redemptions of
Shares in Creation Units (and that Shares are not individually
redeemable); (b) 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; (c) the risks
involved in trading the Shares during the Opening and Late Trading
Sessions when an updated IOPV will not be calculated or publicly
disseminated; (d) how information regarding the IOPV is disseminated;
(e) the requirement that ETP Holders deliver a prospectus to investors
purchasing newly issued Shares prior to or concurrently with the
confirmation of a transaction; and (f) trading information.
    (5) The market value of the call options included in each
Underlying Index will not represent more than 10% of the total weight
of each Underlying Index. Each call option included in each Underlying
Index must meet the criteria of the Underlying Index methodology, which
methodology is publicly available.
    (6) Each Fund seeks a correlation over time of 0.95 or better
between the Fund's performance and the performance of its Underlying
Index. A figure of 1.00 would represent perfect correlation.
    (7) A Fund may hold up to an aggregate amount of 15% of its net
assets in illiquid securities.
    (8) Each Fund will invest at least 80% of its total assets in
securities that comprise its applicable Underlying Index.
    (9) A minimum of 100,000 Shares for each Fund will be outstanding
as of the start of trading on the Exchange.
    (10) For initial and continued listing, each Fund will be in
compliance with Rule 10A-3 under the Act,\37\ as provided by NYSE Arca
Equities Rule 5.3.
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    \37\ 17 CFR 240.10A-3.
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    The Exchange further represents that the Funds and the Shares will
comply with all other requirements applicable to Investment Company
Units including, but not limited to, requirements relating to the
dissemination of key information such as the value of the Underlying
Indices, IOPV, and NAV, rules governing the trading of equity
securities, trading hours, trading halts, surveillance, information
barriers, and Information Bulletin to ETP Holders (each as described in
more detail herein and in the Notice), as set forth in Exchange rules
applicable to Investment Company

Units and prior Commission orders approving the listing rules
applicable to the listing and trading of Investment Company Units. This
approval order is based on all of the Exchange's representations,
including those set forth above and in the Notice, and the Exchange's
description of the Funds.
    For the foregoing reasons, the Commission finds that the proposed
rule change is consistent with Section 6(b)(5) of the Act \38\ and the
rules and regulations thereunder applicable to a national securities
exchange.
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    \38\ 15 U.S.C. 78f(b)(5).
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IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\39\ that the proposed rule change (SR-NYSEArca2012-131) be, and it
hereby is, approved.
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    \39\ 15 U.S.C. 78s(b)(2).
    \40\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\40\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-01811 Filed 1-28-13; 8:45 am]
BILLING CODE 8011-01-P