[Federal Register Volume 82, Number 25 (Wednesday, February 8, 2017)]
[Notices]
[Pages 9858-9865]
[FR Doc No: 2017-02544]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79940; File No. SR-IEX-2017-03]

Self-Regulatory Organizations: Investors Exchange LLC; Notice of
Filing of Proposed Rule Change To Amend IEX Rule 16.135 To Adopt
Generic Listing Standards for Managed Fund Shares

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

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

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

    Pursuant to the provisions of Section 19(b)(1) under the Securities
Exchange Act of 1934 (``Act''),\4\ and Rule 19b-4 thereunder,\5\
Investors Exchange LLC (``IEX'' or ``Exchange'') is filing with the
Commission a proposed rule change to amend IEX Rule 16.135 to adopt
generic listing standards for Managed Fund Shares.
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78s(b)(1).
    \5\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

    The text of the proposed rule change is available at the Exchange's
Web site at www.iextrading.com, at the principal office of the
Exchange, and at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and the
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 these statements may be examined at
the places specified in Item IV below. The self-regulatory organization
has prepared summaries, set forth in Sections A, B, and C below, of the
most significant aspects of such statements.

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

1. Purpose
Overview
    The Exchange proposes to amend IEX Rule 16.135 to adopt generic
listing standards for Managed Fund Shares. The proposed rule change is
substantially identical to existing rules of the Nasdaq Stock Market
(``Nasdaq'').
    The Exchange proposes to amend IEX Rule 16.135 to adopt generic
listing standards for Managed Fund Shares, as well as to make
additional changes as described below. Under the Exchange's current
rules, a proposed rule change would need to be filed with the
Commission for the listing and trading of each new series of Managed
Fund Shares. The Exchange believes that it is appropriate to codify
certain rules within Rule 16.135 that would generally eliminate the
need for such proposed rule changes, which would create greater
efficiency and promote uniform standards in the listing process.\6\
---------------------------------------------------------------------------

    \6\ This proposed rule change is substantially identical to
changes approved by the Commission to Nasdaq Rule 5735. See,
Securities Exchange Act Release No. 78918 (September 23, 2016), 81
FR 67033 (September 29, 2016) (SR-NASDAQ-2016-104).
---------------------------------------------------------------------------

    The Exchange does not currently list any Managed Fund Shares. The
proposed rule change would be applicable in the event IEX lists Managed
Fund Shares.
Background
    Rule 16.135 sets forth certain rules related to the listing and
trading of Managed Fund Shares.\7\ Under Rule 16.135(c)(1), the term
``Managed Fund Share'' means a security that:
---------------------------------------------------------------------------

    \7\ IEX Rule 16.135 was approved in connection with IEX's
approval as a national securities exchange. See, Securities Exchange
Act Release No. 34-78101 at 47 (June 17, 2016), 81 FR 41141 (June
23, 2016) (File No. 10-222).
---------------------------------------------------------------------------

    (a) Represents an interest in a registered investment company
(``Investment Company'') organized as an open-end management investment
company or similar entity, that invests in a portfolio of securities
selected by the Investment Company's investment adviser (hereinafter
``Adviser'') consistent with the Investment Company's investment
objectives and policies;
    (b) is issued in a specified aggregate minimum number in return for
a deposit of a specified portfolio of securities and/or a cash amount
with a value equal to the next determined net asset value; and
    (c) when aggregated in the same specified minimum number, may be
redeemed at a holder's request, which holder will be paid a specified
portfolio of securities and/or cash with a value equal to the next
determined net asset value.
    Effectively, Managed Fund Shares are securities issued by an
actively-managed open-end Investment Company (i.e., an actively-managed
exchange-traded fund (``ETF'')). Because Managed Fund Shares are
actively managed, they do not seek to replicate the performance of a
specified passive index of securities. Instead, they generally use an
active investment strategy to seek to meet their investment objectives.
In contrast, an open-end Investment Company that issues Index Fund
Shares, listed and traded on the Exchange pursuant to IEX Rule
16.105(b), seeks to provide investment results that generally
correspond to the price and yield performance of a specific foreign or
domestic stock index, fixed income securities index, or combination
thereof.
    All Managed Fund Shares listed and/or traded pursuant to Rule
16.135 (including pursuant to unlisted trading privileges) are subject
to the full panoply of Exchange rules and procedures that currently
govern the trading of equity securities on the Exchange.\8\
---------------------------------------------------------------------------

    \8\ See Rule 11.120.
---------------------------------------------------------------------------

    In addition, Rule 16.135(d) currently provides for the criteria
that Managed Fund Shares must satisfy for initial and continued listing
on the Exchange, including, for example, that a minimum number of
Managed Fund Shares are required to be outstanding at the time of
commencement of trading on the Exchange. However, the current process
for listing and trading new series of Managed Fund Shares on the
Exchange would require that the Exchange submit a proposed rule change
with the Commission. In this regard, Rule 16.135(b)(1) specifies that
the Exchange will file separate proposals under Section 19(b) of the
Act (hereinafter, a ``proposed rule change'') before listing and
trading shares of an issue of Managed Fund Shares.
Proposed Changes to Rule 16.135
    The Exchange proposes to amend Rule 16.135(b)(1) to specify that
the Exchange may approve Managed Fund Shares for listing and/or trading
(including pursuant to unlisted trading privileges) pursuant to SEC
Rule 19b-4(e) under the Act, which pertains to derivative securities
products (``SEC Rule 19b-4(e)'').\9\ SEC Rule 19b-4(e)(1) provides that
the listing and trading of a new derivative securities product by a
self-regulatory organization (``SRO'') is not deemed a proposed rule
change, pursuant to paragraph (c)(1) of Rule 19b-4,\10\ if the
Commission has approved, pursuant to Section 19(b) of the Act, the
SRO's trading rules, procedures and listing standards for the product
class that would include the new derivative securities product and the
SRO has a surveillance program for the product class. It is the
Exchange's understanding that this is the current method pursuant to
which ``passive'' ETFs are listed on Nasdaq and NYSE Arca, Inc. (``NYSE
Arca'').
---------------------------------------------------------------------------

    \9\ 17 CFR 240.19b-4(e). As provided under SEC Rule 19b-4(e),
the term ``new derivative securities product'' means any type of
option, warrant, hybrid securities product, or any other security,
other than a single equity option or a security futures product,
whose value is based, in whole or in part, upon the performance of,
or interest in, an underlying instrument.
    \10\ 17 CFR 240.19b-4(c)(1). As provided under SEC Rule 19b-
4(c)(1), a stated policy, practice, or interpretation of the SRO
shall be deemed to be a proposed rule change unless it is reasonably
and fairly implied by an existing rule of the SRO.
---------------------------------------------------------------------------

    The Exchange would also specify within Rule 16.135(b)(1) that
components of Managed Fund Shares listed pursuant to SEC Rule 19b-4(e)
must satisfy, upon initial listing and on a continual basis, certain
specific criteria, which the Exchange would include within Rule
16.135(b)(1), as described in greater detail below. As proposed, the
Exchange would file separate proposed rule changes before the listing
and trading of Managed Fund Shares with components that do not satisfy
the additional criteria described below or components other than those
specified below. For example, if the components of a Managed Fund Share
exceeded one of the applicable thresholds, the Exchange would file a
separate proposed rule change before listing and trading such Managed
Fund Share. Similarly, if the components of a Managed Fund Share
included a security or asset that is not specified below, the Exchange
would file a separate proposed rule change.
    The Exchange would also add to Rule 16.135(c) to provide that the
Web site for each series of Managed Fund Shares shall disclose certain
information regarding the Disclosed Portfolio, to the extent
applicable. The required information includes the following, to the
extent applicable: Ticker symbol, CUSIP or other identifier, a
description of the holding, identity of the asset upon which the
derivative is based, the strike price for any options, the quantity of
each security or other asset held as

measured by select metrics, maturity date, coupon rate, effective date,
market value, and percentage weight of the holding in the
portfolio.\11\
---------------------------------------------------------------------------

    \11\ Proposed rule changes for series of Managed Fund Shares
previously listed on Nasdaq have similarly included disclosure
requirements with respect to each portfolio holding, as applicable
to the type of holding. See, e.g., Securities Exchange Act Release
No. 77688 (April 22, 2016), 81 FR 25467 (April 28, 2016) (SR-NASDAQ-
2016-030) (the ``Elkhorn Dorsey Wright Commodity Rotation Portfolio
of Elkhorn ETF Trust Approval''), generally. See also Securities
Exchange Act Release No. 72666 (July 3, 2014), 79 FR 44224 (July 30,
2014) (SR-NYSEArca-2013-122) (the ``PIMCO Total Return Use of
Derivatives Approval''), generally and at 44227.
---------------------------------------------------------------------------

    In addition, the Exchange would amend Rule 16.135(d) to specify
that all Managed Fund Shares must have a stated investment objective,
which must be adhered to under normal market conditions.\12\
---------------------------------------------------------------------------

    \12\ The Exchange would also add a new defined term under Rule
16.135(c)(5) to specify that the term ``normal market conditions''
includes, but is not limited to, the absence of trading halts in the
applicable financial markets generally; operational issues (e.g.,
systems failure) causing dissemination of inaccurate market
information; or force majeure type events such as a natural or man-
made disaster, act of God, armed conflict, act of terrorism, riot or
labor disruption or any similar intervening circumstance.
---------------------------------------------------------------------------

    Finally, the Exchange would also amend the continued listing
requirements in Rule 16.135(d)(2)(A) by changing the requirement that
an Intraday Indicative Value for Managed Fund Shares be widely
disseminated by one or more major market data vendors at least every 15
seconds during the time when the Managed Fund Shares trade on the
Exchange to a requirement that an Intraday Indicative Value be widely
disseminated by one or more major market data vendors at least every 15
seconds during the Regular Market Session (as defined in Rule
1.160(gg)).
Proposed Managed Fund Share Portfolio Standards
    The Exchange is proposing standards that would pertain to Managed
Fund Shares to qualify for listing and trading pursuant to SEC Rule
19b-4(e). These standards would be grouped according to security or
asset type. The Exchange notes that the standards proposed for a
Managed Fund Share portfolio that holds U.S. Component Stocks, Non-U.S.
Component Stocks, Exchange Traded Derivative Securities, and Linked
Securities are based in large part on the existing equity security
standards applicable to Index Fund Shares in Rule 16.105(b)(3).
    The standards proposed for a Managed Fund Share portfolio that
holds fixed income securities are based in large part on the existing
fixed income security standards applicable to Index Fund Shares in Rule
16.105(b)(4). Many of the standards proposed for other types of
holdings in a Managed Fund Share portfolio are based on previous rule
changes by Nasdaq and NYSE Arca for specific series of Managed Fund
Shares.\13\
---------------------------------------------------------------------------

    \13\ See, e.g., Securities Exchange Act Release No. 77688 (April
22, 2016), 81 FR 25467 (April 28, 2016) (SR-NASDAQ-2016-030) (order
approving listing and trading of Elkhorn Dorsey Wright Commodity
Rotation Portfolio of Elkhorn ETF Trust). See also Securities
Exchange Act Release Nos. 72728 (July 31, 2014) 79 FR 45852 (August
6, 2014) (SR-NASDAQ-2014-059) (order approving listing and trading
of Global X Commodities Strategy ETF) 72506 (July 1, 2014), 79 FR
38631 (July 8, 2014) (SR-NASDAQ-2014-050) (order approving listing
and trading of First Trust Strategic Income ETF); 69464 (April 26,
2013), 78 FR 25774 (May 2, 2013) (SR-NASDAQ-2013-036) (order
approving listing and trading of First Trust Senior Loan Fund); and
66489 (February 29, 2012), 77 FR 13379 (March 6, 2012) (SR-NASDAQ-
2012-004) (order approving listing and trading of WisdomTree
Emerging Markets Corporate Bond Fund). See also Securities Exchange
Act Release Nos. 66321 (February 3, 2012), 77 FR 6850 (February 9,
2012) (SR-NYSEArca-2011-95) (the ``PIMCO Total Return Approval'');
69244 (March 27, 2013), 78 FR 19766 (April 2, 2013) (SR-NYSEArca-
2013-08) (the ``SPDR Blackstone/GSO Senior Loan Approval''); 68870
(February 8, 2013), 78 FR 11245 (February 15, 2013) (SR-NYSEArca-
2012-139) (the ``First Trust Preferred Securities and Income
Approval''); 69591 (May 16, 2013), 78 FR 30372 (May 22, 2013) (SR-
NYSEArca-2013-33) (the ``International Bear Approval''); 61697
(March 12, 2010), 75 FR 13616 (March 22, 2010) (SR-NYSEArca-2010-04)
(the ``WisdomTree Real Return Approval''); and 67054 (May 24, 2012),
77 FR 32161 (May 31, 2012) (SR-NYSEArca-2012-25) (the ``WisdomTree
Brazil Bond Approval''). Certain standards proposed herein for
Managed Fund Shares are also based on previous proposed Nasdaq rule
changes for specific series of Index Fund Shares for which
Commission approval for listing was required due to the Index Fund
Shares not satisfying certain standards of Rule 5705(b)(3) and
5705(b)(4). On NYSE Arca, similar products under NYSE Commentary .01
and .02 to NYSE Arca Equities Rule 5.2(j)(3) are called Investment
Company Units. See, e.g., Securities Exchange Act Release No. 69373
(April 15, 2013), 78 FR 23601 (April 19, 2013) (SR-NYSEArca-2012-
108) (the ``NYSE Arca U.S. Equity Synthetic Reverse Convertible
Index Fund Approval'').
---------------------------------------------------------------------------

    Proposed Rule 16.135(b)(1)(A) would describe the standards for a
Managed Fund Share portfolio that holds equity securities, which are
defined to be U.S. Component Stocks,\14\ Non-U.S. Component Stocks,\15\
Exchange Traded Derivative Securities,\16\ and Linked Securities \17\
listed on a national securities exchange. For Exchange Traded
Derivative Securities and Linked Securities, no more than 25% of the
equity weight of the portfolio could include leveraged and/or inverse
leveraged Exchange Traded Derivative Securities or Linked Securities.
In addition, proposed Rule 16.135(b)(1)(A) would provide that, to the
extent that a portfolio includes convertible securities, the equity
security into which such security is converted would be required to
meet the criteria of Rule 16.135(b)(1)(A) after converting.
---------------------------------------------------------------------------

    \14\ For purposes of Rule 16.135(b)(1) and this proposal, the
term ``U.S. Component Stocks'' would have the same meaning as
defined in Rule 16.105(b)(1)(D).
    \15\ For purposes of Rule 16.135(b)(1) and this proposal, the
term ``Non-U.S. Component Stocks'' would have the same meaning as
defined in Rule 16.105(b)(1)(E).
    \16\ For the purposes of Rule 16.135(b)(1)(A) and this proposal,
proposed Rule 16.135(c)(6) would define the term ``Exchange Traded
Derivative Securities'' to mean the securities described in Rules
16.105(a) (Portfolio Depository Receipts); 16.105(b) (Index Fund
Shares); 16.120 (Trust Issued Receipts); 16.111(d) (Commodity-Based
Trust Shares); 16.111(e) (Currency Trust Shares); 16.111(f),
(Commodity Index Trust Shares); 16.111(g) (Commodity Futures Trust
Shares); 16.111(h) (Partnership Units); 16.111(i) (Trust Units);
16.135 (Managed Fund Shares); and 16.111(j) (Managed Trust
Securities). This proposed definition is more narrow than the term
``Derivative Securities Product,'' as defined in Rule 16.170(d)(1).
    \17\ Linked Securities are securities that qualify for Exchange
listing and trading under Rule 16.110. The securities described in
Rules 16.105, 16.110, and 16.135(c)(6), as referenced above, would
include securities listed on another national securities exchange
pursuant to substantially equivalent listing rules.
---------------------------------------------------------------------------

    As proposed in Rule 16.135(b)(1)(A)(i), the component stocks of the
equity portion of a portfolio that are U.S. Component Stocks shall meet
the following criteria initially and on a continuing basis:
    (1) Component stocks (excluding Exchange Traded Derivative
Securities and Linked Securities) that in the aggregate account for at
least 90% of the equity weight of the portfolio (excluding such
Exchange Traded Derivative Securities and Linked Securities) each must
have a minimum market value of at least $75 million; \18\
---------------------------------------------------------------------------

    \18\ This proposed text is substantively identical to the
corresponding text of Rule 16.105(b)(3)(A)(i)(b), except for the
omission of the reference to ``index,'' which is not applicable, the
substitution of a more narrow exclusion for ``Exchange Traded
Derivative Securities'' instead of for ``Derivative Securities
Products,'' and the addition of the reference to Linked Securities.
---------------------------------------------------------------------------

    (2) Component stocks (excluding Exchange Traded Derivative
Securities and Linked Securities) that in the aggregate account for at
least 70% of the equity weight of the portfolio (excluding such
Exchange Traded Derivative Securities and Linked Securities) each must
have a minimum monthly trading volume of 250,000 shares or minimum
notional volume traded per month of $25,000,000, averaged, over the
last six months; \19\
---------------------------------------------------------------------------

    \19\ This proposed text is substantively identical to the
corresponding text of Rule 16.105(b)(3)(A)(i)(c), except for the
omission of the reference to ``index,'' which is not applicable, the
substitution of a more narrow exclusion for ``Exchange Traded
Derivative Securities'' instead of for ``Derivative Securities
Products,'' and the addition of the reference to Linked Securities.
---------------------------------------------------------------------------

    (3) The most heavily weighted component stock (excluding Exchange

Traded Derivative Securities and Linked Securities) must not exceed 30%
of the equity weight of the portfolio, and, to the extent applicable,
the five most heavily weighted component stocks (excluding Exchange
Traded Derivative Securities and Linked Securities) must not exceed 65%
of the equity weight of the portfolio; \20\
---------------------------------------------------------------------------

    \20\ This proposed text is substantively identical to the
corresponding text of Rule 16.105(b)(3)(A)(i)(d), except for the
omission of the reference to ``index,'' which is not applicable, the
substitution of a more narrow exclusion for ``Exchange Traded
Derivative Securities'' instead of for ``Derivative Securities
Products,'' and the addition of the reference to Linked Securities.
---------------------------------------------------------------------------

    (4) Where the equity portion of the portfolio does not include Non-
U.S. Component Stocks, the equity portion of the portfolio shall
include a minimum of 13 component stocks; provided, however, that there
shall be no minimum number of component stocks if (a) one or more
series of Exchange Traded Derivative Securities or Linked Securities
constitute, at least in part, components underlying a series of Managed
Fund Shares, or (b) one or more series of Exchange Traded Derivative
Securities or Linked Securities account for 100% of the equity weight
of the portfolio of a series of Managed Fund Shares; \21\
---------------------------------------------------------------------------

    \21\ This proposed text is substantively identical to the
corresponding text of Rule 16.105(b)(3)(A)(i)(e), except for the
omission of the reference to ``index,'' which is not applicable, the
addition of the reference to Linked Securities, the substitution of
a more narrow exclusion for ``Exchange Traded Derivative
Securities'' instead of for ``Derivative Securities Products,'' and
the reference to the 100% limit applying to the ``equity portion''
of the portfolio.
---------------------------------------------------------------------------

    (5) Except as provided in proposed Rule 16.135(b)(1)(A), equity
securities in the portfolio must be U.S. Component Stocks listed on a
national securities exchange and must be NMS Stocks as defined in Rule
600 of Regulation NMS; \22\ and
---------------------------------------------------------------------------

    \22\ 17 CFR 240.600. This proposed text is substantively
identical to the corresponding text of Rule 16.105(b)(3)(A)(i)(f),
except for the addition of ``equity'' to make clear that the
standard applies to ``equity securities,'' the exclusion of
unsponsored ADRs, and the omission of the reference to ``index,''
which is not applicable.
---------------------------------------------------------------------------

    (6) American Depositary Receipts (``ADRs'') may be exchange-traded
or non-exchange-traded. However, no more than 10% of the equity weight
of the portfolio shall consist of non-exchange-traded ADRs.\23\
---------------------------------------------------------------------------

    \23\ Proposed rule changes for previously-listed series of
Managed Fund Shares have similarly included the ability for such
Managed Fund Shareholdings to include not more than 10% of net
assets in unsponsored ADRs (which are not exchange listed). See,
e.g., Securities Exchange Act Release No. 73480 (October 31, 2014),
79 FR 66022 (November 6, 2014) (SR-NASDAQ-2014-090) (order approving
the Listing and Trading of Shares of the Validea Market Legends
ETFs). See also Securities Exchange Act Release No. 71067 (December
12, 2013), 78 FR 76669 (December 18, 2013) (order approving listing
and trading of shares of the SPDR MFS Systematic Core Equity ETF,
SPDR MFS Systematic Growth Equity ETF, and SPDR MFS Systematic Value
Equity ETF under NYSE Arca Equities Rule 8.600).
---------------------------------------------------------------------------

    As proposed in Rule 16.135(b)(1)(A)(ii), the component stocks of
the equity portion of a portfolio that are Non-U.S. Component Stocks
shall meet the following criteria initially and on a continuing basis:
    (1) Non-U.S. Component Stocks each shall have a minimum market
value of at least $100 million; \24\
---------------------------------------------------------------------------

    \24\ The proposed text is identical to the corresponding
representations from the First Trust Approval Order and the SSgA
Global Managed Volatility Release, as noted in footnote 31, below.
The proposed text is also substantively identical to the
corresponding text of Rule 16.105(b)(3)(A)(ii)(a), except for the
omission of the reference to ``index,'' which is not applicable, and
that each Non-U.S. Component Stock must have a minimum market value
of at least $100 million instead of the 90% required under Rule
16.105(b)(3)(A)(ii)(a).
---------------------------------------------------------------------------

    (2) Non-U.S. Component Stocks each shall have a minimum global
monthly trading volume of 250,000 shares, or minimum global notional
volume traded per month of $25,000,000, averaged over the last six
months; \25\
---------------------------------------------------------------------------

    \25\ The proposed text is identical to the corresponding
representations from the First Trust Approval Order and the SSgA
Global Managed Volatility Release, as noted in footnote 31, below.
This proposed text also is substantively identical to the
corresponding text of Rule 16.105(b)(3)(A)(ii)(b), except for the
omission of the reference to ``index,'' which is not applicable.
---------------------------------------------------------------------------

    (3) The most heavily weighted Non-U.S. Component Stock shall not
exceed 25% of the equity weight of the portfolio, and, to the extent
applicable, the five most heavily weighted Non-U.S. Component Stocks
shall not exceed 60% of the equity weight of the portfolio; \26\
---------------------------------------------------------------------------

    \26\ This proposed text is substantively identical to the
corresponding text of Rule 16.105(b)(3)(A)(ii)(c), except for the
omission of the reference to ``index,'' which is not applicable.
---------------------------------------------------------------------------

    (4) Where the equity portion of the portfolio includes Non-U.S.
Component Stocks, the equity portion of the portfolio shall include a
minimum of 20 component stocks; provided, however, that there shall be
no minimum number of component stocks if (i) one or more series of
Exchange Traded Derivative Securities or Linked Securities constitute,
at least in part, components underlying a series of Managed Fund
Shares, or (ii) one or more series of Exchange Traded Derivative
Securities or Linked Securities account for 100% of the equity weight
of the portfolio of a series of Managed Fund Shares; \27\ and
---------------------------------------------------------------------------

    \27\ This proposed text is substantively identical to the
corresponding text of Rule 16.105(b)(3)(A)(ii)(d), except for the
omission of the reference to ``index,'' which is not applicable, the
substitution of a more narrow exclusion for ``Exchange Traded
Derivative Securities'' instead of for ``Derivative Securities
Products,'' the addition of the reference to Linked Securities, the
reference to the equity portion of the portfolio including Non-U.S.
Component Stocks, and the reference to the 100% limitation applying
to the ``equity weight'' of the portfolio, which is included because
the proposed standards in Rule 16.135(b) permit the inclusion of
non-equity securities, whereas Rule 16.105 applies only to equity
securities.
---------------------------------------------------------------------------

    (5) Each Non-U.S. Component Stock shall be listed and traded on an
exchange that has last-sale reporting.\28\
---------------------------------------------------------------------------

    \28\ This proposed text is substantively identical to Rule
16.105(b)(3)(A)(ii)(e). as it relates to Non-U.S. Component Stocks.
---------------------------------------------------------------------------

    The Exchange notes that it is not proposing to require that any of
the equity portion of the equity portfolio composed of Non-U.S.
Component Stocks be listed on markets that are either a member of the
Intermarket Surveillance Group (``ISG'') or a market with which the
Exchange has a comprehensive surveillance sharing agreement
(``CSSA'').\29\ However, as further detailed below, the regulatory
staff of the Exchange, or the Financial Industry Regulatory Authority,
Inc. (``FINRA''), on behalf of the Exchange, will communicate as needed
regarding trading in Managed Fund Shares with other markets that are
members of the ISG, including U.S. securities exchanges on which the
components are traded.
---------------------------------------------------------------------------

    \29\ ISG is comprised of an international group of exchanges,
market centers, and market regulators that perform front-line market
surveillance in their respective jurisdictions. See
www.isgportal.org. A list of ISG members is available at
www.isgportal.org.
---------------------------------------------------------------------------

    The Exchange notes that the generic listing standards for Index
Fund Shares based on foreign indexes in Rule 16.105 do not include
specific ISG or CSSA requirements.\30\ In addition, the Commission has
approved listing and trading on Nasdaq of shares of an issue of Managed
Fund Shares under Nasdaq Rule 5735 (which is substantially identical to
IEX Rule 16.135) where non-U.S. equity securities in such issue's
portfolio meet specified criteria and where there is no requirement
that such non-U.S. equity securities are traded in markets that are
members of ISG or with which Nasdaq has in place a CSSA.\31\
---------------------------------------------------------------------------

    \30\ Under Rule 16.105(b)(3), Index Fund Shares with components
that include Non-U.S. Component Stocks can hold a portfolio that is
entirely composed of Non-U.S. Component Stocks that are listed on
markets that are neither members of ISG, nor with which the Exchange
has in place a CSSA.
    \31\ See, e.g., Securities Exchange Act Release No. 77548 (April
6, 2016), 81 FR 21626 (April 12, 2016) (SR-NASDAQ-2015-161) (order
approving listing and trading of the Shares of the First Trust
RiverFront Dynamic Europe ETF, First Trust RiverFront Dynamic Asia
Pacific ETF, First Trust RiverFront Dynamic Emerging Markets ETF,
and First Trust RiverFront Dynamic Developed International ETF of
First Trust Exchange-Traded Fund III) (the ``First Trust Approval
Order''). See also Securities Exchange Act Release No. 75023 (May
21, 2015), 80 FR 30519 (May 28, 2015) (SR-NYSEArca-2014-100) (order
approving listing and trading on the Exchange of shares of the SPDR
SSgA Global Managed Volatility ETF under NYSE Arca Equities Rule
8.600) (``SSgA Global Managed Volatility Release'').

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

    Proposed Rule 16.135(b)(1)(B) would describe the standards for a
Managed Fund Share portfolio that holds fixed income securities, which
are debt securities \32\ that are notes, bonds, debentures, or evidence
of indebtedness that include, but are not limited to, U.S. Department
of Treasury securities (``Treasury Securities''), government-sponsored
entity securities (``GSE Securities''), municipal securities, trust
preferred securities, supranational debt and debt of a foreign country
or a subdivision thereof, investment grade and high yield corporate
debt, bank loans, mortgage and asset backed securities, and commercial
paper.
---------------------------------------------------------------------------

    \32\ Debt securities include a variety of fixed income
obligations, including, but not limited to, corporate debt
securities, government securities, municipal securities, convertible
securities, and mortgage-backed securities. Debt securities include
investment-grade securities, non-investment-grade securities, and
unrated securities. Debt securities also include variable and
floating rate securities.
---------------------------------------------------------------------------

    In addition, to the extent that a portfolio includes convertible
securities, the fixed income security into which such security is
converted would be required to meet the criteria of Rule
16.135(b)(1)(B) after converting.
    The components of the fixed income portion of the portfolio must
meet the following criteria initially and on a continuing basis:
    (1) Components that in the aggregate account for at least 75% of
the fixed income weight of the portfolio each shall have a minimum
original principal amount outstanding of $100 million or more; \33\
---------------------------------------------------------------------------

    \33\ This text of proposed Rule 16.135(b)(1)(B)(i) is based on
the corresponding text of Rule 16.105(b)(4)(A)(ii).
---------------------------------------------------------------------------

    (2) No component fixed-income security (excluding Treasury
Securities and GSE Securities could represent more than 30% of the
fixed income weight of the portfolio; and the five most heavily
weighted component fixed income securities in the portfolio (excluding
Treasury Securities and GSE Securities) must not in the aggregate
account for more than 65% of the fixed income weight of the portfolio;
\34\
---------------------------------------------------------------------------

    \34\ This proposed text is substantively identical to the
corresponding text of 16.105(b)(4)(A)(iv), except for the omission
of the reference to ``index,'' which is not applicable.
---------------------------------------------------------------------------

    (3) An underlying portfolio (excluding exempted securities) that
includes fixed income securities must include a minimum of 13 non-
affiliated issuers; provided, however, that there shall be no minimum
number of non-affiliated issuers required for fixed income securities
if at least 70% of the weight of the portfolio consists of equity
securities as described in proposed Rule 16.135(b)(1)(A); \35\
---------------------------------------------------------------------------

    \35\ This proposed text is substantively identical to the
corresponding text of Rule 16.105(b)(4)(A)(v), except for the
omission of the reference to ``index,'' which is not applicable, the
exclusion of the text ``consisting entirely of exempted securities''
and the provision that there shall be no minimum number of
nonaffiliated issuers required for fixed income securities if at
least 70% of the weight of the portfolio consists of equity
securities as described in proposed Rule 16.135(b)(1)(A).
---------------------------------------------------------------------------

    (4) Component securities that in aggregate account for at least 90%
of the fixed income weight of the portfolio must be either (a) from
issuers that are required to file reports pursuant to Sections 13 and
15(d) of the Act; (b) from issuers that have a worldwide market value
of outstanding common equity held by non-affiliates of $700 million or
more; (c) from issuers that have outstanding securities that are notes,
bonds, debentures, or evidence of indebtedness having a total remaining
principal amount of at least $1 billion; \36\ (d) exempted securities
as defined in Section 3(a)(12) of the Act; or (e) from issuers that are
a government of a foreign country or a political subdivision of a
foreign country; and
---------------------------------------------------------------------------

    \36\ With respect to subparagraphs (b) and (c) above, the
special purpose vehicle (``SPV'') that issues the fixed income
security (e.g., an asset-backed or mortgage backed security) would
itself be required to satisfy the $700 million and $1 billion
criteria, respectively, and not the entity that controls, owns or is
affiliated with the SPV.
---------------------------------------------------------------------------

    (5) Non-agency, non-GSE, and privately-issued mortgage-related and
other asset backed securities components of a portfolio shall not
account, in the aggregate, for more than 20% of the weight of the fixed
income portion of the portfolio.\37\
---------------------------------------------------------------------------

    \37\ Proposed rule changes for previously-listed series of
Managed Fund Shares have similarly included the ability for such
Managed Fund Share holdings to include up to 20% of net assets in
non-agency, non-GSE and privately-issued mortgage related and other
asset-backed securities. See, e.g., Securities Exchange Act Release
No. 74742 (April 16, 2015) 80 FR 22584 (April 22, 2015) (SR-NASDAQ-
2015-011) (order approving the listing and trading of shares of the
First Trust Strategic Floating Rate ETF of First Trust Exchange-
Traded Fund IV. See also, Securities Exchange Act Release No. 75566
(July 30, 2015), 80 FR 46612 (August 5, 2015) (SR-NYSEArca-2015-42)
(order approving listing and trading of shares of Newfleet Multi-
Sector Unconstrained Bond ETF under Rule 8.600).
---------------------------------------------------------------------------

    Proposed Rule 16.135(b)(1)(C) would describe the standards for a
Managed Fund Share portfolio that holds cash and cash equivalents.\38\
Specifically, the portfolio may hold short-term instruments with
maturities of less than 3 months. There would be no limitation on the
percentage of the portfolio invested in such holdings. Short-term
instruments would include the following: \39\
---------------------------------------------------------------------------

    \38\ Proposed rule changes for previously-listed series of
Managed Fund Shares have similarly included the ability for such
Managed Fund Share holdings to include cash and cash equivalents.
See, e.g., note 13 supra.
    \39\ Proposed rule changes for previously-listed series of
Managed Fund Shares have similarly specified short-term instruments
with respect to their inclusion in Managed Fund Share holdings. See,
e.g., note 13 supra.
---------------------------------------------------------------------------

    (1) U.S. Government securities, including bills, notes, and bonds
differing as to maturity and rates of interest, which are either issued
or guaranteed by the U.S. Treasury or by U.S. Government agencies or
instrumentalities;
    (2) certificates of deposit issued against funds deposited in a
bank or savings and loan association;
    (3) bankers' acceptances, which are short-term credit instruments
used to finance commercial transactions;
    (4) repurchase agreements and reverse repurchase agreements;
    (5) bank time deposits, which are monies kept on deposit with banks
or savings and loan associations for a stated period of time at a fixed
rate of interest;
    (6) commercial paper, which are short-term unsecured promissory
notes; and
    (7) money market funds.
    Proposed Rule 16.135(b)(1)(D) would describe the standards for a
Managed Fund Share portfolio that holds listed derivatives, including
futures, options, and swaps on commodities, currencies, and financial
instruments (e.g., stocks, fixed income, interest rates, and
volatility) or a basket or index of any of the foregoing.\40\ There
would be no limitation on the percentage of the portfolio invested in
such holdings, subject to the following requirements:
---------------------------------------------------------------------------

    \40\ Proposed rule changes for previously-listed series of
Managed Fund Shares have similarly included the ability for such
Managed Fund Share holdings to include listed derivatives. See,
e.g., note 13 supra.
---------------------------------------------------------------------------

    (1) In the aggregate, at least 90% of the weight of such holdings
invested in futures, exchange-traded options, and listed swaps shall,
on both an initial and continuing basis, consist of futures, options,
and swaps for which the Exchange may obtain information via the ISG
from other members or affiliates of the ISG or for which the principal
market is a market with which the Exchange has a comprehensive
surveillance sharing agreement (for purposes of calculating this
limitation, a portfolio's investment in listed derivatives will be
calculated as the aggregate gross notional value of the listed
derivatives); and

    (2) the aggregate gross notional value of listed derivatives based
on any five or fewer underlying reference assets shall not exceed 65%
of the weight of the portfolio (including gross notional exposures),
and the aggregate gross notional value of listed derivatives based on
any single underlying reference asset shall not exceed 30% of the
weight of the portfolio (including gross notional exposures).
    Proposed Rule 16.135(b)(1)(E) would describe the standards for a
Managed Fund Share portfolio that holds over the counter (``OTC'')
derivatives, including forwards, options and swaps on commodities,
currencies and financial instruments (e.g., stocks, fixed income,
interest rates, and volatility) or a basket or index of any of the
foregoing.\41\ Proposed Rule 16.135(b)(1)(E) would provide that, on
both an initial and continuing basis, no more than 20% of the assets in
the portfolio may be invested in OTC derivatives. For purposes of
calculating this limitation, a portfolio's investment in OTC
derivatives will be calculated as the aggregate gross notional value of
the OTC derivatives.
---------------------------------------------------------------------------

    \41\ A proposed rule change for series of Index Fund Shares
previously listed and traded on Nasdaq pursuant to Nasdaq Rule 5705
similarly included the ability for such Index Fund Shares' holdings
to include OTC derivatives, specifically OTC down-and-in put
options, which are not NMS Stocks as defined in Rule 600 of
Regulation NMS and therefore did not satisfy the requirements of
Nasdaq Rule 5705. See, e.g., note 13 supra, regarding NYSE Arca U.S.
Equity Synthetic Reverse Convertible Index Fund Approval.
---------------------------------------------------------------------------

    Proposed Rule 16.135(b)(1)(F) would provide that, to the extent
that listed or OTC derivatives are used to gain exposure to individual
equities and/or fixed income securities, or to indexes of equities and/
or fixed income securities, the aggregate gross notional value of such
exposure shall meet the criteria set forth in Rules 16.135(b)(1)(A) and
(B) (including gross notional exposures), respectively.
    The following examples illustrate how certain of the proposed
generic criteria of Rule 16.135 would be applied:
    1. An actively managed ETF holds non-agency MBS that represent 15%
of the weight of the fixed income portion of the portfolio. The fixed
income portion of the portfolio meets all the requirements of Rule
16.135(b)(1)(B). The ETF also holds an OTC swap on a non-agency MBS
Index that represents 10% of the fixed income weight of the portfolio
calculated on a notional value basis. Separately, the OTC swap and
fixed income portion of the portfolio would meet the requirements of
Rule 16.135(b)(1). However, when the 15% weight in non-agency MBS and
the 10% weight in the non-agency MBS Index OTC swap are combined, as
required by proposed 16.135(b)(1)(F), the 25% total weight would exceed
the 20% limit for non-agency GSE and privately-issued mortgage-related
securities in Rule 16.135(b)(1)(B)(v). The portfolio, therefore, would
not meet the proposed generic criteria of Rule 16.135.
    2. An actively managed ETF holds a portfolio of non-U.S. equity
securities, S&P 500 Index and gold futures. S&P 500 Index futures and
the gold futures held by the fund are listed on an ISG member exchange.
The equity portion of the portfolio consists of developed and emerging
markets equity securities with a current aggregate market value of $15
million and all components meet the requirements under Rule
16.135(b)(1)(A)(ii). The gold futures contract trading unit size is 100
troy ounces and an ounce of gold is currently worth $1200. The fund
holds 500 gold futures contracts with a notional value of $60 million
(500*100*$1200). One S&P 500 contract represents 250 units of the S&P
500 Index and the S&P 500 Index is trading at $2,000. The portfolio
holds 50 contracts, so the notional value of the S&P 500 Index futures
position is $25 million (50*250*$2000). The S&P 500 Index futures meet
the requirement under Rule 16.135(b)(1)(F), that is, the S&P 500 Index
meets the criteria in Rule 16.135(b)(1)(A). The weights of the
components are as follows; equity securities represent 15% of the
portfolio, gold futures represent 60% of the portfolio and S&P 500
Index futures represent 25% of the portfolio. The gold futures
represent 60% of the portfolio and exceeds the 30% concentration
limitation on any single underlying reference asset as outlined in
proposed Rule 16.135(b)(1)(D)(ii). The portfolio, therefore, would not
meet the proposed generic criteria of Rule 16.135.
    3. An actively managed ETF holds a portfolio of equity securities
and call option contracts on company XYZ. The equity portion of the
portfolio meets the requirements under Rule 16.135(b)(1)(A). Company
XYZ represents 20% of the weight of the equity portion of the
portfolio. The equity portion of the fund has a market value of $100
million and the market value of the fund's holdings in company XYZ has
a market value of $20 million. The fund also holds 10,000 call option
contracts on company XYZ which has a current market price of $50 a
share and, therefore, a notional value of $50 million (50*100*10,000)
(that is, the $50 market price per share times the multiplier of 100
times 10,000 contracts). The option contracts are traded on an ISG
member exchange. The total exposure to company XYZ is therefore $70
million and represents 46.7% ($70 million/$150 million=46.7%) of the
portfolio. This fund would not meet the requirements of Rule 16.135
because the exposure to XYZ at 46.7% exceeds the 30% concentration
limitation of proposed Rule 16.135(b)(1)(D)(ii).
    The Exchange believes that the proposed standards would ensure
transparency surrounding the listing process for Managed Fund Shares.
Additionally, the Exchange believes that the proposed portfolio
standards for listing and trading Managed Fund Shares, many of which
track existing Exchange rules relating to Index Fund Shares, are
reasonably designed to promote a fair and orderly market for such
Managed Fund Shares. These proposed standards would also work in
conjunction with the existing initial and continued listing criteria
related to surveillance procedures and trading guidelines.
    In support of this proposal, the Exchange represents that:
    1. Any Managed Fund Shares listed and traded on IEX will conform to
the initial and continued listing criteria under Rule 16.135;
    2. the Exchange's surveillance procedures are adequate to continue
to properly monitor the trading of the Managed Fund Shares in all
trading sessions and to deter and detect violations of Exchange rules.
Specifically, the Exchange intends to utilize its existing surveillance
procedures applicable to derivative products, which will include
Managed Fund Shares, to monitor trading in the Managed Fund Shares;
    3. prior to the commencement of trading of a particular series of
Managed Fund Shares, the Exchange will inform its members in an
information circular (``Circular'') of the special characteristics and
risks associated with trading the Managed Fund Shares, including
procedures for purchases and redemptions of Managed Fund Shares,
suitability requirements under Rules 3.150 and 3.170, the risks
involved in trading the Managed Fund Shares during the Pre-Market and
Post-Market Sessions when an updated Intraday Indicative Value will not
be calculated or publicly disseminated, information regarding the
Intraday Indicative Value and the Disclosed Portfolio, prospectus
delivery requirements, and other trading information. In addition, the
Circular will disclose that the Managed Fund Shares are subject to
various fees and expenses, as described in the applicable registration
statement, and will discuss

any exemptive, no-action, and interpretive relief granted by the
Commission from any rules under the Act. Finally, the Circular will
disclose that the net asset value for the Managed Fund Shares will be
calculated after 4 p.m., ET, each trading day; and
    4. the issuer of a series of Managed Fund Shares will be required
to comply with Rule 10A-3 under the Act for the initial and continued
listing of Managed Fund Shares, as provided under the IEX Rule Series
14.400.
    The Exchange, on a periodic basis and no less than annually, will
review issues of Managed Fund Shares generically listed pursuant to
Rule 16.135, and will provide a report to the Regulatory Oversight
Committee of the Exchange's Board of Directors regarding the Exchange's
findings. In addition, the Exchange will provide the Commission staff
with a report each calendar quarter that includes the following
information for issues of Managed Fund Shares listed during such
calendar quarter under Rule 16.135(b)(1): (1) Trading symbol and date
of listing on the Exchange; (2) the number of active authorized
participants and a description of any failure of an issue of Managed
Fund Shares or of an authorized participant to deliver shares, cash, or
cash and financial instruments in connection with creation or
redemption orders; and (3) a description of any failure of an issue of
Managed Fund Shares to comply with Rule 16.135.
    Prior to listing pursuant to proposed amended Rule 16.135(b)(1), an
issuer would be required to represent to the Exchange that it will
advise the Exchange of any failure by a series of Managed Fund Shares
to comply with the continued listing requirements, and, pursuant to its
obligations under Section 19(g)(1) of the Act, the Exchange will
monitor for compliance with the continued listing requirements. If the
Fund is not in compliance with the applicable listing requirements, the
Exchange will commence delisting procedures under IEX Rule Series
14.500.
    The Exchange notes that the proposed change is not otherwise
intended to address any other issues and that the Exchange is not aware
of any problems that members or issuers would have in complying with
the proposed change.
2. Statutory Basis
    IEX believes that the proposed rule change is consistent with
Section 6(b) \42\ of the Act in general, and furthers the objectives of
Section 6(b)(5) of the Act,\43\ in particular, in that it is 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.
---------------------------------------------------------------------------

    \42\ 15 U.S.C. 78f(b).
    \43\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange believes that the proposed change to adopt generic
listing standards for Managed Fund Shares is designed to perfect the
mechanism of a free and open market and, in general, to protect
investors and the public interest because it would facilitate the
potential listing and trading of Managed Fund Shares on the Exchange,
which would enhance competition among market participants, to the
benefit of investors and the marketplace. The proposed change would
codify in Rule 16.135 specified criteria that have been the basis for
proposed rule filings by Nasdaq and NYSE Arca with the Commission for
the listing and trading of each new series of Managed Fund Shares. The
Exchange believes that such codification is appropriate in that it
would facilitate the listing and trading of additional types of Managed
Fund Shares that have investment portfolios that are similar to
investment portfolios for Index Fund Shares, which have been approved
for listing and trading, thereby creating greater efficiencies in the
listing process for the Exchange and the Commission should the Exchange
seek to list Managed Fund Shares. Moreover, the proposed generic
standards for Managed Fund Shares are substantially identical to those
that the Commission approved for Nasdaq, finding that such standards
are consistent with the Section 6(b)(5) of the Act, noting that
Nasdaq's proposal in turn was substantially identical to proposals the
Commission had recently approved for NYSE Arca and Bats BZX Exchange
(previously BATS Exchange).\44\
---------------------------------------------------------------------------

    \44\ See, Securities Exchange Act Release No. 78918 (September
23, 2016), 81 FR 67033 (September 29, 2016) (SR-NASDAQ-2016-104).
---------------------------------------------------------------------------

    The Exchange further believes that the proposed rule change is
designed to protect investors and the public interest because Managed
Fund Shares listed and traded pursuant to Rule 16.135, including
pursuant to the proposed new portfolio standards, would continue to be
subject to the full panoply of Exchange rules and procedures that
currently govern the trading of equity securities on the Exchange.
    The Exchange believes that the proposed rule change is designed to
prevent fraudulent and manipulative acts and practices because the
Managed Fund Shares will be listed and traded on the Exchange pursuant
to the initial and continued listing criteria in Rule 16.135. The
Exchange has in place surveillance procedures that are adequate to
properly monitor trading in the Managed Fund Shares in all trading
sessions and to deter and detect violations of Exchange rules and
applicable federal securities laws. FINRA, on behalf of the Exchange,
or the regulatory staff of the Exchange, will communicate as needed
regarding trading in Managed Fund Shares with other markets that are
members of the ISG, including all U.S. securities exchanges and futures
exchanges on which the components are traded.
    In addition, the Exchange may obtain information regarding trading
in Managed Fund Shares from other markets that are members of the ISG,
including all U.S. securities exchanges and futures exchanges on which
the components are traded, or with which the Exchange has in place a
CSSA.
    The Exchange also believes that the proposed rule change would
fulfill the intended objective of Rule 19b-4(e) under the Act by
allowing Managed Fund Shares that satisfy the proposed listing
standards to be listed and traded without separate Commission approval.
However, as proposed, the Exchange would continue to file separate
proposed rule changes before the listing and trading of Managed Fund
Shares that do not satisfy the additional criteria described above.
    The Exchange, on a periodic basis and no less than annually, will
review issues of Managed Fund Shares listed pursuant to Rule
16.135(b)(1), and will provide a report to the Regulatory Oversight
Committee of the Exchange's Board of Directors regarding the Exchange's
findings. In addition, the Exchange will provide the Commission staff
with a report each calendar quarter that includes the following
information for issues of Managed Fund Shares listed during such
calendar quarter under Rule 16.135(b)(1): (1) Trading symbol and date
of listing on the Exchange; (2) the number of active authorized
participants and a description of any failure of an issue of Managed
Fund Shares listed pursuant to Rule 16.135(b)(1) or of an authorized
participant to deliver shares, cash, or cash and financial instruments
in connection with creation or redemption orders; and (3) a description
of any

failure of an issue of Managed Fund Shares to comply with Rule 16.135.
    Prior to listing pursuant to proposed amended Rule 16.136(b)(1), an
issuer would be required to represent to the Exchange that it will
advise the Exchange of any failure by a series of Managed Fund Shares
to comply with the continued listing requirements, and, pursuant to its
obligations under Section 19(g)(1) of the Act, the Exchange will
monitor for compliance with the continued listing requirements. If the
Fund is not in compliance with the applicable listing requirements, the
Exchange will commence delisting procedures under IEX Rule Series
14.500.
    Accordingly, based on the foregoing, the Exchange believes that the
proposed generic listing standards for Managed Fund Shares are
consistent with Section 6(b)(5) of the Act.

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

    IEX does not believe that the proposed rule change will result in
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act.
    The Exchange believes that the proposed change would facilitate the
listing and trading of additional types of Managed Fund Shares and
result in a significantly more efficient process for the listing and
trading of Managed Fund Shares, thereby enhancing competition among
market participants, including issuers and exchanges. Further, the
Exchange believes that applying uniform and transparent listing
standards would make the process for listing Managed Fund Shares more
competitive.

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

    Written comments were neither solicited nor received.

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

    Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period up to 90 days (i) as the
Commission may designate if it finds such longer period to be
appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
    A. By order approve or disapprove such proposed rule change; or
    B. institute proceedings to determine whether the proposed rule
change should be disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-IEX-2017-03 in the subject line.

Paper Comments:

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

All submissions should refer to File Number SR-IEX-2017-03. This file
number should be included in the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the filing will also be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-IEX-2017-03 and should be
submitted on or before March 1, 2017.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\45\
---------------------------------------------------------------------------

    \45\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Robert W. Errett,
Deputy Secretary.
[FR Doc. 2017-02544 Filed 2-7-17; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 82, Number 223 (Tuesday, November 21, 2017)]
[Notices]
[Page 55357]
[FR Doc No: 2017-25154]

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

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[EG17-136-000, EG17-137-000, EG17-138-000, EG17-139-000, EG17-140-000,
EG17 141-000, EG17-142-000, EG17-143-000, EG17-144-000, EG17-145-000,
EG17-146-000, EG17-147-000, EG17-148-000, FC17-5-000]

Notice of Effectiveness of Exempt Wholesale Generator and Foreign
Utility Company Status; Moffett Solar 1, LLC, Techren Solar I LLC,
Southampton Solar LLC, Cuyama Solar, LLC, Middle Daisy, LLC, Shoreham
Solar Commons LLC, Shoreham Solar Commons Holdings LLC, Golden Hills
North Wind, LLC, St. Joseph Energy Center, LLC, Imperial Valley Solar
3, LLC, Thunder Ranch Wind Project, LLC, Scott-II Solar LLC, HD Project
One, LLC, Aspa Energias Renovables, S.L.U.

    Take notice that during the month of October 2017, the status of
the above-captioned entities as Exempt Wholesale Generators or Foreign
Utility Companies became effective by operation of the Commission's
regulations. 18 CFR 366.7(a)(2017).

    Dated: November 15, 2017.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2017-25154 Filed 11-20-17; 8:45 am]
 BILLING CODE 6717-01-P


[Federal Register: April 28, 2008 (Volume 73, Number 82)]
[Notices]
[Page 22964-22965]
[DOCID:fr28ap08-66]

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

DEPARTMENT OF HOMELAND SECURITY

Federal Emergency Management Agency

Agency Information Collection Activities: Proposed Collection;
Comment Request

AGENCY: Federal Emergency Management Agency, DHS.

ACTION: Notice; 60-day notice and request for comments; Extension of a
currently approved collection, OMB Number 1660-0061, No Forms.

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

SUMMARY: The Federal Emergency Management Agency (FEMA), as part of its
continuing effort to reduce paperwork and respondent burden, invites
the general public and other Federal agencies to take this opportunity
to comment on a continuing information collection. In accordance with
the Paperwork Reduction Act of 1995, this notice seeks comments
concerning the need to continue collecting information from individuals
and States in order to provide and/or administer disaster assistance
through the Federal Assistance to Individuals and Households Program
(IHP).

SUPPLEMENTARY INFORMATION: Section 206(a) of the Disaster Mitigation
Act of 2000 (DMA 2000) (Public Law 106-390) consolidated the
``Temporary Housing Assistance'' and the ``Individual and Family Grant
Programs'' into a single program called ``Federal Assistance to
Individuals and Households'' (IHP) at section 408 of the Robert T.
Stafford Disaster Relief and Emergency Assistance Act (Pub. L. 93-288,
as amended). To implement this consolidation, which is intended to
streamline the provision of assistance to disaster victims, FEMA
published an interim final rule (67 FR 61446) which became effective on
September 30, 2002. Pursuant to this rule applicants are able to
request approval of late registrations, request continued assistance,
and appeal program decisions. Similarly, States can partner with FEMA
for delivery of disaster assistance under the ``Other Needs'' provision
of the IHP through Administrative Option Agreements and Administration
Plans addressing the level of managerial and resource support
necessary.

Collection of Information

    Title: Federal Assistance to Individuals and Households Program
(IHP).
    Type of Information Collection: Extension of a currently approved
collection.
    OMB Number: 1660-0061.
    Form Numbers: No Forms.
    Abstract: The Federal Assistance to Individuals and Households
Program (IHP) enhances applicants' ability to request approval of late
applications, request continued assistance, and appeal program
decisions. Similarly, it allows States to partner with FEMA for
delivery of disaster assistance under the ``Other Needs'' provision of
the IHP through Administrative Option Agreements and Administration
Plans addressing the level of managerial and resource support
necessary.
    Affected Public: Individuals and Households; State, Local or Tribal
Governments.
    Estimated Total Annual Burden Hours: 29,716 hours.

                                               Annual Burden Hours
----------------------------------------------------------------------------------------------------------------
    Project/activity (survey,        Number of     Frequency of    Burden hours       Annual       Total annual
   form(s), focus group, etc.)      respondents      responses    per respondent     responses     burden hours
                                             (A)             (B)          (C)       (D)= (A x B)         (C x D)
----------------------------------------------------------------------------------------------------------------
Individuals:                      ..............  ..............  ..............  ..............  ..............
    Request for Approval of Late           8,000               1            0.75           8,000           6,000
     Registration...............
    Request for Continued                  2,000               1            0.5            2,000           1,000
     Assistance.................
    Appeal of Program Decision            30,000               1            0.75          30,000          22,500
     (to include review and use
     of supplemental guidance...
States:                           ..............  ..............  ..............  ..............  ..............
    Review of Administrative                  56               1            3                 56             168
     Option Agreement for the
     Other Needs provision of
     IHP........................

    Development of State                      16  ..............            3                 16              48
     Administrative Plan for the
     Other Needs provision of
     IHP........................
                                 -------------------------------------------------------------------------------
        Total...................  ..............  ..............  ..............          40,072          29,716
----------------------------------------------------------------------------------------------------------------

    Estimated Cost: The estimated annualized cost to respondents based
on wage rate categories is $173,354. The estimated annual cost to the
Federal Government is $855,971.
    Comments: Written comments are solicited to (a) Evaluate whether
the proposed data collection is necessary for the proper performance of
the agency, including whether the information shall have practical
utility; (b) evaluate the accuracy of the agency's estimate of the
burden of the proposed collection of information, including the
validity of the methodology and assumptions used; (c) enhance the
quality, utility, and clarity of the information to be collected; and
(d) minimize the burden of the collection of information on those who
are to respond, including through the use of appropriate automated,
electronic, mechanical, or other technological collection techniques or
other forms of information technology, e.g., permitting electronic
submission of responses. Comments must be submitted on or before June
27, 2008.

ADDRESSES: Interested persons should submit written comments to Office
of Management, Records Management Division, Federal Emergency
Management Agency, 500 C Street, SW., Washington, DC 20472, Mail Drop
Room 301, 1800 S. Bell Street, Arlington, VA 22202.

FOR FURTHER INFORMATION CONTACT: Contact Lumumba Yancey, Program
Analyst,<PHONE_NUMBER> for additional information. You may contact the
Records Management Division for copies of the proposed collection of
information at facsimile number<PHONE_NUMBER> or e-mail address: FEMA-
<EMAIL_ADDRESS>
    Dated: April 21, 2008.
John A. Sharetts-Sullivan,
Director, Records Management Division, Office of Management, Federal
Emergency Management Agency, Department of Homeland Security.
 [FR Doc. E8-9208 Filed 4-25-08; 8:45 am]

BILLING CODE 9110-10-P