[Federal Register Volume 78, Number 147 (Wednesday, July 31, 2013)]
[Notices]
[Pages 46332-46333]
[FR Doc No: 2013-18159]

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ENVIRONMENTAL PROTECTION AGENCY

[EPA-HQ-OW-2006-0369; FRL-9840-2]

Proposed Information Collection Request; Comment Request;
National Estuary Program

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

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SUMMARY: The Environmental Protection Agency is planning to submit an
information collection request (ICR), ``National Estuary Program'' (EPA
ICR No. 1500.08, OMB Control No. 2040-0138 to the Office of Management
and Budget (OMB) for review and approval in accordance with the
Paperwork Reduction Act (44 U.S.C. 3501 et seq.). Before doing so, EPA
is soliciting public comments on specific aspects of the proposed
information collection as described below. This is a proposed extension
of the ICR, which is currently approved through January 31, 2014. An
Agency may not conduct or sponsor and a person is not required to
respond to a collection of information unless it displays a currently
valid OMB control number.

DATES: Comments must be submitted on or before September 30, 2013.

ADDRESSES: Submit your comments, referencing Docket ID No. EPA-HQ-OW-
2006-0369, online using www.regulations.gov (our preferred method), by
email to<EMAIL_ADDRESS>or by mail to: EPA Docket Center,
Environmental Protection Agency, Mail Code 28221T, 1200 Pennsylvania
Ave. NW., Washington, DC 20460.
    EPA's policy is that all comments received will be included in the
public docket without change including any personal information
provided, unless the comment includes profanity, threats, information
claimed to be Confidential Business Information (CBI) or other
information whose disclosure is restricted by statute.

FOR FURTHER INFORMATION CONTACT: John McShane, Oceans and Coastal
Protection Division, Office of Wetlands, Oceans, and Watersheds, Mail
Code 4504T, Environmental Protection Agency, 1200 Pennsylvania Ave.
NW., Washington, DC 20460; telephone number:<PHONE_NUMBER>; fax
number:<PHONE_NUMBER>; email address<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: Supporting documents which explain in detail
the information that the EPA will be collecting are available in the
public docket for this ICR. The docket can be viewed online at
www.regulations.gov or in person at the EPA Docket Center, EPA West,
Room 3334, 1301 Constitution Ave. NW., Washington, DC. The telephone
number for the Docket Center is<PHONE_NUMBER>. For additional
information about EPA's public docket, visit http://www.epa.gov/dockets.
    Pursuant to section 3506(c)(2)(A) of the PRA, EPA is soliciting
comments and information to enable it to: (i) Evaluate whether the
proposed collection of information is necessary for the proper
performance of the functions of the Agency, including whether the
information will have practical utility; (ii) 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; (iii) enhance the quality, utility, and clarity of the
information to be collected; and (iv) 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. EPA
will consider the comments received and amend the ICR as appropriate.
The final ICR package will then be submitted to OMB for review and
approval. At that time, EPA will issue another Federal Register notice
to announce the submission of the ICR to OMB and the opportunity to
submit additional comments to OMB.
    Abstract: The National Estuary Program (NEP) involves collecting
information from the state or local agency or nongovernmental
organizations that receive funds under Sec. 320 of the Clean Water Act
(CWA). The regulation requiring this information is found at 40 CFR
Part 35. Prospective grant recipients seek funding to develop or
oversee and coordinate implementation of Comprehensive Conservation
Management Plans (CCMPs) for estuaries of national significance. In
order to receive funds, grantees must submit an annual workplan to EPA
which are used to track performance of each of the 28 estuary programs
currently in the NEP.
    EPA provides funding to NEPs to support long-term implementation of
CCMPs if such programs pass a program evaluation process. The primary
purpose of the program evaluation process is to help EPA determine
whether the 28 programs included in the National Estuary Program (NEP)
are making adequate progress implementing their CCMPs and therefore
merit continued funding under Sec. 320 of the Clean Water Act. EPA also
requests that each of the 28 NEPs receiving Sec. 320 funds report
information that can be used in the GPRA reporting process. This
reporting is done on an annual basis and is used to show environmental
results that are being achieved within the overall NEP Program. This
information is ultimately submitted to Congress along with GPRA
information from other EPA programs.
    Form Numbers: None.
    Respondents/Affected Entities: Entities potentially affected by
this action are those state or local agencies or nongovernmental
organizations in the National Estuary Program (NEP) who receive grants
under Section 320 of the Clean Water Act.
    Respondent's Obligation to Respond: Required to obtain or retain a
benefit (Section 320 of the Clean Water Act).
    Estimated Number of Respondents: 28.
    Frequency of Response: Annual.
    Total Estimated Burden: 6,113 hours (per year). Burden is defined
at 5 CFR 1320.3(b).
    Total Estimated Cost: $409,349 (per year), includes $0 annualized
capital or operation and & maintenance costs.
    Changes in Estimates: There will likely be a decrease in the total
estimated respondent burden hours compared with the ICR currently
approved by OMB. This decrease is due to changing the program
evaluations from every three years to every five years. Note that these
numbers will be updated in the final FR Notice.

    Dated: July 22, 2013.
Paul Cough,
Director, Oceans and Coastal Protection Division.
[FR Doc. 2013-18159 Filed 7-30-13; 8:45 am]
BILLING CODE 6560-50-P


[Federal Register Volume 87, Number 117 (Friday, June 17, 2022)]
[Notices]
[Pages 36571-36572]
[FR Doc No: 2022-13055]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

Membership in the National Parks Overflights Advisory Group

AGENCY: Federal Aviation Administration, (FAA), DOT.

ACTION: Solicitation of applications.

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SUMMARY: The Federal Aviation Administration (FAA) and the National
Park Service (NPS) invite interested persons to apply to fill one
current and one upcoming vacancy on the National Parks Overflights
Advisory Group (NPOAG). This notice invites interested persons to apply
for the current and upcoming openings. The current opening is for a
representative of Native American tribes. The upcoming opening is for a
representative of environmental concerns.

DATES: Persons interested in these membership openings will need to
apply by July 29, 2022.

FOR FURTHER INFORMATION CONTACT: Keith Lusk, Special Programs Staff,
Federal Aviation Administration, Western-Pacific Region Headquarters,
777 S Aviation Boulevard, Suite 150, El Segundo, CA 90245, telephone:
(424) 405-7017, email: [email protected].

SUPPLEMENTARY INFORMATION:

Background

    The National Parks Air Tour Management Act of 2000 (the Act) was
enacted on April 5, 2000, as Public Law 106-181, and subsequently
amended in the FAA Modernization and Reform Act of 2012. The Act
required the establishment of the advisory group within one year after
its enactment. The NPOAG was established in March 2001. The advisory
group is comprised of representatives of general aviation, commercial
air tour operators, environmental concerns, and Native American tribes.
The Administrator of the FAA and the Director of NPS (or their
designees) serve as ex officio members of the group. Representatives of
the Administrator and Director serve alternating 1-year terms as
chairman of the advisory group.
    In accordance with the Act, the advisory group provides ``advice,
information, and recommendations to the Administrator and the
Director--
    (1) On the implementation of this title [the Act] and the
amendments made by this title;
    (2) On commonly accepted quiet aircraft technology for use in
commercial air tour operations over a national park or tribal lands,
which will

receive preferential treatment in a given air tour management plan;
    (3) On other measures that might be taken to accommodate the
interests of visitors to national parks; and
    (4) At the request of the Administrator and the Director, safety,
environmental, and other issues related to commercial air tour
operations over a national park or tribal lands.''

Membership

    The current NPOAG is made up of one member representing general
aviation, three members representing the commercial air tour industry,
four members representing environmental concerns, and two members
representing Native American tribes. Members serve three year terms.
Current members of the NPOAG are as follows:
    Murray Huling representing general aviation; Eric Lincoln, James
Viola, and John Becker representing commercial air tour operators;
Robert Randall, Dick Hingson, Les Blomberg, and John Eastman
representing environmental interests; and Carl Slater representing
Native American tribes, with one current opening. The three-year term
of Mr. Randall expires on September 18, 2022.

Selections

    In order to retain balance within the NPOAG, the FAA and NPS are
seeking candidates interested in filling the one current vacant seat
representing Native American tribes and the one upcoming seat
representing environmental concerns. The FAA and NPS invite persons
interested in these openings on the NPOAG to contact Mr. Keith Lusk
(contact information is written above in FOR FURTHER INFORMATION
CONTACT). Requests to serve on the NPOAG must be made to Mr. Lusk in
writing and postmarked or emailed on or before July 29, 2022. Any
request to fill one of these seats must describe the requestor's
affiliation with federally-recognized Native American tribes or any
environmental stakeholder groups, as appropriate. The request should
also explain what expertise the requestor would bring to the NPOAG as
related to issues and concerns with aircraft flights over national
parks or tribal lands. The term of service for NPOAG members is 3
years. Members may re-apply for another term.
    On August 13, 2014, the Office of Management and Budget issued
revised guidance regarding the prohibition against appointing or not
reappointing federally registered lobbyists to serve on advisory
committees (79 FR 47482).
    Therefore, before appointing an applicant to serve on the NPOAG,
the FAA and NPS will require the prospective candidate to certify that
they are not a federally registered lobbyist.

    Issued in El Segundo, CA, on June 13, 2022.
Keith Lusk,
Program Manager, Special Programs Staff, Western-Pacific Region.
[FR Doc. 2022-13055 Filed 6-16-22; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register Volume 84, Number 59 (Wednesday, March 27, 2019)]
[Notices]
[Pages 11582-11586]
[FR Doc No: 2019-05807]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-85385; File No. SR-NYSEArca-2018-83]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
of Amendment No. 2 and Order Instituting Proceedings To Determine
Whether To Approve or Disapprove a Proposed Rule Change, as Modified by
Amendment No. 2, Regarding Changes to Investments of the iShares
Bloomberg Roll Select Commodity Strategy ETF

 March 21, 2019.

I. Introduction

    On December 19, 2018, NYSE Arca, Inc. (``Exchange'' or ``NYSE
Arca'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change regarding changes to investments of the iShares
Bloomberg Roll Select Commodity Strategy ETF (``Fund''), shares
(``Shares'') of which are currently listed and traded on the Exchange
under NYSE Arca Rule 8.600-E . The proposed rule change was published
for comment in the Federal Register on December 31, 2018.\3\ On
February 13, 2019, pursuant to Section 19(b)(2) of the Act,\4\ the
Commission designated a longer period within which to approve the
proposed rule change, disapprove the proposed rule change, or institute
proceedings to determine whether to approve or disapprove the proposed
rule change.\5\ On March 6, 2019, the Exchange filed Amendment No. 1 to
the proposed rule change, which replaced and superseded the proposed
rule change as originally filed.\6\ On March 14, 2019, the Exchange
filed Amendment No. 2 to the proposed rule change, which replaced and
superseded the proposed rule change, as modified by Amendment No. 1.\7\
The Commission has received no comment letters on the proposal. The
Commission is publishing this notice and order to solicit comments on
the proposed rule change, as modified by Amendment No. 2, from
interested persons and to institute proceedings pursuant to Section
19(b)(2)(B) of the Act \8\ to determine whether to approve or
disapprove the proposed rule change, as modified by Amendment No. 2.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 84931 (December 21,
2018), 83 FR 67741.
    \4\ 15 U.S.C. 78s(b)(2).
    \5\ See Securities Exchange Act Release No. 85117, 84 FR 5124
(February 20, 2019). The Commission designated March 31, 2019, as
the date by which the Commission shall approve the proposed rule
change, disapprove the proposed rule change, or institute
proceedings to determine whether to approve or disapprove the
proposed rule change.
    \6\ Amendment No. 1 is available at: https://www.sec.gov/comments/sr-nysearca-2018-83/srnysearca201883-5031694-183050.pdf.
    \7\ In Amendment No. 2, the Exchange: (1) Clarified that Shares
of the Fund commenced listing and trading on the Exchange on April
5, 2018 under the generic listing standards under Commentary .01 to
NYSE Arca Rule 8.600-E; (2) clarified that the Fund is not obligated
to invest in any futures contracts included in, and does not seek to
replicate the performance of, the Reference Benchmark (as defined
below); (3) modified the types of derivative instruments and
reference assets for such derivative instruments that the Fund may
invest in; (4) clarified that commodity-linked notes are among the
Fixed Income Instruments (as defined below) that the Fund may invest
in; (5) specified that the Fund may invest in ETNs and ETFs (each as
defined below); (6) represented that the Fund's investments
currently comply with the generic requirements set forth in
Commentary .01 to NYSE Arca Rule 8.600-E; (7) added a representation
that the Fund's holdings in OTC Derivatives (as defined below) will
satisfy the criteria applicable to holdings in listed derivatives in
Commentary .01(d)(2) to NYSE Arca Rule 8.600-E on an initial and
continued listing basis; (8) added a representation that the Adviser
(as defined below) and its affiliates actively monitor counterparty
credit risk exposure (including for OTC derivatives) and evaluate
counterparty credit quality on a continuous basis; and (9) made
technical and conforming changes. Amendment No. 2 is available at:
https://www.sec.gov/comments/sr-nysearca-2018-83/srnysearca201883-5152678-183414.pdf.
    \8\ 15 U.S.C. 78s(b)(2)(B).
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II. Summary of the Exchange's Description of the Proposal, as Modified
by Amendment No. 2 9
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    \9\ For a complete description of the Exchange's proposal, see
Amendment No. 2, supra note 7.
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    The Exchange proposes certain changes regarding investments of the
Fund, Shares of which are currently listed and traded on the Exchange
under NYSE Arca Rule 8.600-E, which governs the listing and trading of
Managed Fund Shares on the Exchange. Shares of the Fund commenced
listing and trading on the Exchange on April 5, 2018 under the generic
listing standards under Commentary .01 to NYSE Arca Rule 8.600-E.
    The Shares are offered by iShares U.S. ETF Trust (``Trust''), which
is registered with the Commission as an open-end management investment
company.\10\ The Fund is a series of the Trust.
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    \10\ According to the Exchange, on February 21, 2018, the Trust
filed with the Commission its registration statement on Form N-1A
under the Securities Act of 1933 and under the Investment Company
Act of 1940 (``1940 Act'') relating to the Fund (File Nos. 333-
179904 and 811-22649) (``Registration Statement''). In addition, the
Exchange states that the Commission has issued an order upon which
the Trust may rely, granting certain exemptive relief under the 1940
Act. See Investment Company Act Release No. 29571 (January 24, 2011)
(File No. 812-13601).
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    BlackRock Fund Advisors (``Adviser'') is the investment adviser for
the Fund.\11\ BlackRock Investments, LLC is the distributor for the
Fund's Shares. State Street Bank and Trust Company serves as the
administrator, custodian and transfer agent for the Fund.
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    \11\ According to the Exchange, the Adviser is not registered as
a broker-dealer but is affiliated with a broker-dealer, and has
implemented and will maintain a fire wall with respect to its
broker-dealer affiliate regarding access to information concerning
the composition and/or changes to the portfolio. In the event (a)
the Adviser becomes registered as a broker-dealer or newly
affiliated with a broker-dealer, or (b) any new adviser or sub-
adviser is a registered broker-dealer or becomes affiliated with a
broker-dealer, it will implement and maintain a fire wall with
respect to its relevant personnel or its broker-dealer affiliate
regarding access to information concerning the composition and/or
changes to the portfolio, and will be subject to procedures designed
to prevent the use and dissemination of material non-public
information regarding such portfolio. The Exchange also represents
that the Adviser and its related personnel are subject to the
provisions of Rule 204A-1 under the Investment Advisers Act of 1940
relating to codes of ethics.
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A. Fund Investments

    According to the Exchange, the Fund's investment objective is to
seek to provide exposure, on a total return basis, to a diversified
group of commodities. The Fund is actively managed and seeks to achieve
its investment objective in part \12\ by, under normal market
conditions,\13\ investing in listed and over-the-counter (``OTC'')
total return swaps referencing the Bloomberg Roll Select Commodity
Index (``Reference Benchmark'').\14\ In connection with investments in
swaps on the Reference Benchmark, the Fund is expected to establish new
swaps contracts on an ongoing basis and

replace expiring contracts.\15\ Swaps subsequently entered into by the
Fund may have terms that differ from the swaps the Fund previously
held.\16\ The Fund expects generally to pay a fixed payment rate and
certain swap related fees to the swap counterparty and receive the
total return of the Reference Benchmark, including in the event of
negative performance by the Reference Benchmark, negative return (i.e.,
a payment from the Fund to the swap counterparty). In seeking total
return, the Fund additionally aims to generate interest income and
capital appreciation through a cash management strategy consisting
primarily of cash, cash equivalents,\17\ and fixed income securities
other than cash equivalents, as described below.
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    \12\ The Fund's investment objective is also achieved by
investing in cash, cash equivalents, Commodity Investments, Fixed
Income Securities and Short-Term Fixed Income Securities (each as
defined or described below).
    \13\ The term ``normal market conditions'' is defined in NYSE
Arca Rule 8.600-E(c)(5).
    \14\ The Bloomberg Roll Select Commodity Index is a version of
the Bloomberg Commodity Index that aims to mitigate the effects of
contango on index performance (as described further below). For each
commodity, the index rolls into the futures contract showing the
most backwardation or least contango, selecting from those contracts
with nine months or fewer until expiration. (Source: Bloomberg)
    \15\ Swaps on the Reference Benchmark are included in
``Commodity Investments'' as defined below.
    \16\ Although the Fund may hold swaps on the Reference
Benchmark, or direct investments in, the same futures contracts as
those included in the Reference Benchmark, the Fund is not obligated
to invest in any futures contracts included in, and does not seek to
replicate the performance of, the Reference Benchmark.
    \17\ Cash equivalents are the short-term instruments enumerated
in Commentary .01(c) to NYSE Arca Rule 8.600-E.
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    The Reference Benchmark is composed of 22 futures contracts across
20 physical agricultural, livestock, energy, precious metals and
industrial metals commodities. The Reference Benchmark reflects the
returns from these commodities and provides broad-based exposure to
commodities as an asset class by using liquidity and sector caps to
avoid overconcentration in any single commodity or commodity sector.
The Reference Benchmark employs a contract roll strategy intended to
minimize the effects of contango and maximize the effects of
backwardation.\18\
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    \18\ According to the Exchange, in order to maintain exposure to
a futures contract on a particular commodity, an investor must sell
the position in the expiring contract and buy a new position in a
contract with a later delivery month, which is referred to as
``rolling.'' If the price for the new futures contract is less than
the price of the expiring contract, then the market for the
commodity is said to be in ``backwardation.'' In these markets, roll
returns are positive, which is referred to as ``positive carry.''
The term ``contango'' is used to describe a market in which the
price for a new futures contract is more than the price of the
expiring contract. In these markets, roll returns are negative,
which is referred to as ``negative carry.'' The Reference Benchmark
seeks to employ a positive carry strategy that emphasizes
commodities and futures contract months with the greatest degree of
backwardation and lowest degree of contango, resulting in net gains
through positive roll returns.
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    The Fund will invest in financial instruments described below that
provide exposure to commodities and not in the physical commodities
themselves.
    The Fund (through its Subsidiary (as defined below)) may hold the
following listed derivative instruments: Futures, options, and swaps on
commodities (which commodities are from the same sectors as those
included in the Reference Benchmark), currencies, U.S. and non-U.S.
equity securities, fixed income securities (as defined in Commentary
.01(b) to NYSE Arca Rule 8.600-E, but excluding Short-Term Fixed Income
Securities (as defined below)), interest rates, financial rates, U.S.
Treasuries, or a basket or index of any of the foregoing (collectively,
``Listed Derivatives'').\19\ Listed Derivatives will comply with the
criteria in Commentary .01(d) of NYSE Arca Rule 8.600-E.
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    \19\ Examples of Listed Derivatives the Fund may invest in
include exchange traded futures contracts similar to those found in
the Reference Benchmark, exchange traded futures contracts on the
Reference Benchmark, swaps on commodity futures contracts similar to
those found in the Reference Benchmark, and futures and options that
correlate to the investment returns of commodities without investing
directly in physical commodities.
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    The Fund (through its Subsidiary) may hold the following OTC
derivative instruments: Forwards, options, and swaps on commodities
(which commodities are from the same sectors as those included in the
Reference Benchmark), currencies, U.S. and non-U.S. equity securities,
fixed income securities (as defined in Commentary .01(b) to Rule 8.600-
E, but excluding Short-Term Fixed Income Securities), interest rates,
financial rates, or a basket or index of any of the foregoing
(collectively, ``OTC Derivatives,'' \20\ and together with Listed
Derivatives, ``Commodity Investments'').\21\
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    \20\ Examples of OTC Derivatives the Fund may invest in include
swaps on commodity futures contracts similar to those found in the
Reference Benchmark and options that correlate to the investment
returns of commodities without investing directly in physical
commodities.
    \21\ As discussed below under ``Application of Generic Listing
Requirements,'' the Fund's and the Subsidiary's holdings in OTC
derivatives will not comply with the criteria in Commentary .01(e)
of NYSE Arca Rule 8.600-E.
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    The Fund may hold cash, cash equivalents and fixed income
securities other than cash equivalents, as described further below.
    Specifically, the Fund may invest in Short-Term Fixed Income
Securities (as defined below) other than cash equivalents on an ongoing
basis to provide liquidity or for other reasons.\22\ Short-Term Fixed
Income Securities will have a maturity of no longer than 397 days and
include only the following: (i) Money market instruments; (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 non-U.S. banks
(including non-U.S. branches) and similar institutions; (iv) commercial
paper; (v) non-convertible corporate debt securities (e.g., bonds and
debentures); (vi) repurchase agreements; (vii) short-term U.S. dollar-
denominated obligations of non-U.S. banks (including U.S. branches)
that, in the opinion of the Adviser, are of comparable quality to
obligations of U.S. banks that may be purchased by the Fund; and (viii)
sovereign obligations (collectively, ``Short-Term Fixed Income
Securities''). Any of these securities may be purchased on a current or
forward-settled basis.\23\
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    \22\ As discussed below under ``Application of Generic Listing
Requirements,'' the Fund's investments in Short-Term Fixed Income
Securities will not comply with the requirements of Commentary
.01(b)(1)-(4) to NYSE Arca Rule 8.600-E.
    \23\ To the extent that the Fund and the Subsidiary invest in
cash and Short-Term Fixed Income Securities that are cash
equivalents (i.e., that have maturities of less than 3 months) as
specified in Commentary .01(c) to NYSE Arca Rule 8.600-E, such
investments will comply with Commentary .01(c) and may be held
without limitation. Non-convertible corporate debt securities and
sovereign obligations are not included as cash equivalents in
Commentary .01(c).
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    The Fund also may invest in fixed income securities as defined in
Commentary .01(b) to NYSE Arca Rule 8.600-E,\24\ other than cash
equivalents and Short-Term Fixed Income Securities, with remaining
maturities longer than 397 days (``Fixed Income Securities''). Such
Fixed Income Securities will comply with the requirements of Commentary
.01(b) to NYSE Arca Rule 8.600-E.\25\
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    \24\ Commentary .01(b) to NYSE Arca Rule 8.600-E defines fixed
income securities as debt securities 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 (``GSEs''),
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.
    \25\ Among the Fixed Income Securities in which the Fund may
invest are commodity-linked notes.
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    The Fund may also hold exchange-traded notes (``ETNs'') \26\ and
exchange-traded funds (``ETFs'').\27\
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    \26\ ETNs are securities as described in NYSE Arca Rule 5.2-
E(j)(6) (Equity Index-Linked Securities, Commodity-Linked
Securities, Currency-Linked Securities, Fixed Income Index-Linked
Securities, Futures-Linked Securities and Multifactor Index-Linked
Securities).
    \27\ The term ``ETFs'' includes Investment Company Units (as
described in NYSE Arca Rule 5.2-E(j)(3)); Portfolio Depositary
Receipts (as described in NYSE Arca Rule 8.100-E); and Managed Fund
Shares (as described in NYSE Arca Rule 8.600-E). All ETFs will be
listed and traded in the U.S. on a national securities exchange. The
Fund will not invest in inverse or leveraged (e.g., 2X, -2X, 3X or -
3X) ETFs.

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    The Fund's exposure to Commodity Investments is obtained by
investing through a wholly-owned subsidiary organized in the Cayman
Islands (``Subsidiary'').\28\ The Fund controls the Subsidiary, and the
Subsidiary is advised by the Adviser and has the same investment
objective as the Fund. In compliance with the requirements of Sub-
Chapter M of the Internal Revenue Code of 1986, the Fund may invest up
to 25% of its total assets in the Subsidiary. The Subsidiary is not an
investment company registered under the 1940 Act and is a company
organized under the laws of the Cayman Islands. The Trust's Board of
Trustees (``Board'') has oversight responsibility for the investment
activities of the Fund, including its investment in the Subsidiary, and
the Fund's role as sole shareholder of the Subsidiary.
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    \28\ The Exchange represents that all statements related to the
Fund's investments and restrictions are applicable to the Fund and
Subsidiary collectively.
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    The Fund's Commodity Investments held in the Subsidiary are
intended to provide the Fund with exposure to broad commodities. The
Subsidiary may hold cash and cash equivalents.

B. Investment Restrictions

    The Fund and the Subsidiary will not invest in securities or other
financial instruments that have not been described in the proposed rule
change. The Fund's investments, including derivatives, will be
consistent with the Fund's investment objective and will not be used to
enhance leverage (although certain derivatives and other investments
may result in leverage). That is, the Fund's investments will not be
used to seek performance that is the multiple or inverse multiple
(e.g., 2X or -3X) of the Fund's Reference Benchmark.

C. Use of Derivatives by the Fund

    Investments in derivative instruments will be made in accordance
with the Fund's investment objective and policies. To limit the
potential risk associated with such transactions, the Fund will enter
into offsetting transactions or segregate or ``earmark'' assets
determined to be liquid by the Adviser in accordance with procedures
established by the Board. In addition, the Fund has included
appropriate risk disclosure in its offering documents, including
leveraging risk. Leveraging risk is the risk that certain transactions
of the Fund, including the Fund's use of derivatives, may give rise to
leverage, causing the Fund to be more volatile than if it had not been
leveraged.
    The Adviser believes there will be minimal, if any, impact to the
arbitrage mechanism as a result of the Fund's use of derivatives. The
Adviser understands that market makers and participants should be able
to value derivatives as long as the positions are disclosed with
relevant information. The Adviser believes that the price at which
Shares of the Fund trade will continue to be disciplined by arbitrage
opportunities created by the ability to purchase or redeem Shares of
the Fund at their net asset value (``NAV''), which should ensure that
Shares of the Fund will not trade at a material discount or premium in
relation to their NAV.
    The Adviser does not believe there will be any significant impacts
to the settlement or operational aspects of the Fund's arbitrage
mechanism due to the use of derivatives.

D. Application of Generic Listing Requirements

    The Exchange represents that the proposed portfolio for the Fund
will not meet all of the ``generic'' listing requirements of Commentary
.01 to NYSE Arca Rule 8.600-E applicable to the listing of Managed Fund
Shares. The Exchange represents that the Fund's portfolio will meet all
such requirements except for those set forth in Commentary .01 (b)(1)-
(4) (with respect to Short-Term Fixed Income Securities) and .01(e)
(with respect to OTC Derivatives), as described below.
    According to the Exchange, the Fund's investments currently comply
with the generic requirements set forth in Commentary .01 to NYSE Arca
Rule 8.600-E. The Exchange proposes that, going forward, the Fund's
investments in Short-Term Fixed Income Securities will not comply with
the requirements set forth in Commentary .01(b)(1)-(4) to NYSE Arca
Rule 8.600-E.\29\ The Exchange states that while the requirements set
forth in Commentary .01(b)(1)-(4) include rules intended to ensure that
the fixed income securities included in a fund's portfolio are
sufficiently large and diverse and have sufficient publicly available
information regarding the issuances, the Exchange believes that any
concerns regarding non-compliance are mitigated by the types of
instruments that the Fund would hold. The Exchange represents that the
Fund's Short-Term Fixed Income Securities primarily would include those
instruments that are included in the definition of cash and cash
equivalents,\30\ but are not considered cash and cash equivalents
because they have maturities of three months or longer. The Exchange
believes, however, that, because all Short-Term Fixed Income
Securities, including non-convertible corporate debt securities and
sovereign obligations (which are not cash equivalents as enumerated in
Commentary .01(c) to NYSE Arca Rule 8.600-E), are highly liquid they
are less susceptible than other types of fixed income instruments both
to price manipulation and volatility and that the holdings as proposed
are generally consistent with the policy concerns which Commentary
.01(b)(1)-(4) is intended to address. Because the Short-Term Fixed
Income Securities will consist of high-quality fixed income securities
described above, the Exchange believes that the policy concerns that
Commentary .01(b)(1)-(4) is intended to address are otherwise mitigated
and that the Fund should be permitted to hold these securities in a
manner that may not comply with Commentary .01(b)(1)-(4).
---------------------------------------------------------------------------

    \29\ Commentary .01(b)(1)-(4) to NYSE Arca Rule 8.600-E requires
that the components of the fixed income portion of a portfolio 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; (2)
no component fixed-income security (excluding Treasury Securities
and GSE Securities) shall 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) shall not in the aggregate
account for more than 65% of the fixed income weight of the
portfolio; (3) an underlying portfolio (excluding exempted
securities) that includes fixed income securities shall 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 Commentary
.01(a); and (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 Securities Exchange Act of 1934; (b)
from issuers that have a worldwide market value of its 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; (d) exempted securities as
defined in Section 3(a)(12) of the Securities Exchange Act of 1934;
or (e) from issuers that are a government of a foreign country or a
political subdivision of a foreign country.
    \30\ See supra note 17.
---------------------------------------------------------------------------

    According to the Exchange, the Fund's portfolio with respect to OTC
Derivatives currently complies with the requirements set forth in
Commentary

.01(e) to NYSE Arca Rule 8.600-E.\31\ The Exchange proposes that, going
forward, the Fund's holdings in OTC Derivatives will not comply with
the requirements set forth in Commentary .01(e). Specifically, the
Exchange states that up to 60% of the Fund's assets (calculated as the
aggregate gross notional value) may be invested in OTC Derivatives. The
Exchange states that the Adviser believes that it is important to
provide the Fund with additional flexibility to manage risk associated
with its investments and, depending on market conditions, it may be
critical that the Fund be able to utilize available OTC Derivatives to
efficiently gain exposure to the multiple commodities that underlie the
Reference Benchmark, as well as commodity futures contracts similar to
those found in the Reference Benchmark.
---------------------------------------------------------------------------

    \31\ Commentary .01(e) to NYSE Arca Rule 8.600-E provides that,
on an initial and continuing basis, no more than 20% of the assets
in the portfolio may be invested in OTC derivatives (calculated as
the aggregate gross notional value of the OTC derivatives).
---------------------------------------------------------------------------

    The Exchange states that OTC Derivatives can be tailored to provide
specific exposure to the Fund's Reference Benchmark, as well as
commodity futures contracts similar to those found in the Reference
Benchmark, allowing the Fund to more efficiently meet its investment
objective.\32\ The Exchange further states that if the Fund were to
gain commodity exposure exclusively through the use of listed futures,
the Fund's holdings in listed futures would be subject to position
limits and accountability levels established by an exchange, and such
limitations would restrict the Fund's ability to gain efficient
exposure to the commodities in the Reference Benchmark, or futures
contracts similar to those found in the Reference Benchmark, thereby
impeding the Fund's ability to satisfy its investment objective.
---------------------------------------------------------------------------

    \32\ As an example, the Exchange states that the Reference
Benchmark is composed of 22 futures contracts across 20 physical
commodities, which may not be sufficiently liquid and would not
provide the commodity exposure the Fund requires to meet its
investment objective if the Fund were to invest in the futures
directly. The Exchange states that a total return swap can be
structured to provide exposure to the same futures contracts as
exist in the Reference Benchmark, as well as commodity futures
contracts similar to those found in the Reference Benchmark, while
providing sufficient efficiency to allow the Fund to more easily
meet its investment objective.
---------------------------------------------------------------------------

    The Exchange states that the Adviser represents that the Fund's
holdings in OTC Derivatives will satisfy the criteria applicable to
holdings in Listed Derivatives in Commentary .01(d)(2) to NYSE Arca
Rule 8.600-E on an initial and continued listing basis.\33\ Thus, with
respect to the Fund's holdings in OTC Derivatives, the aggregate gross
notional value of OTC Derivatives based on any five or fewer underlying
reference assets will not exceed 65% of the weight of the portfolio
(including gross notional exposures), and the aggregate gross notional
value of OTC Derivatives based on any single underlying reference asset
will not exceed 30% of the weight of the portfolio (including gross
notional exposures). The Exchange also represents that the Adviser and
its affiliates actively monitor counterparty credit risk exposure
(including for OTC derivatives) and evaluate counterparty credit
quality on a continuous basis. Finally, the Exchange states that the
Adviser represents that futures contracts on all commodities in the
Reference Benchmark are traded on futures exchanges that are members of
the Intermarket Surveillance Group.
---------------------------------------------------------------------------

    \33\ Commentary .01(d)(2) to NYSE Arca Rule 8.600-E provides
that, with respect to a fund's portfolio, 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).
---------------------------------------------------------------------------

III. Proceedings To Determine Whether To Approve or Disapprove SR-
NYSEArca-2018-83, as Modified by Amendment No. 2, and Grounds for
Disapproval Under Consideration

    The Commission is instituting proceedings pursuant to Section
19(b)(2)(B) of the Act \34\ to determine whether the proposed rule
change should be approved or disapproved. Institution of such
proceedings is appropriate at this time in view of the legal and policy
issues raised by the proposed rule change. Institution of proceedings
does not indicate that the Commission has reached any conclusions with
respect to any of the issues involved. Rather, as described below, the
Commission seeks and encourages interested persons to provide comments
on the proposed rule change.
---------------------------------------------------------------------------

    \34\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------

    Pursuant to Section 19(b)(2)(B) of the Act,\35\ the Commission is
providing notice of the grounds for disapproval under consideration.
The Commission is instituting proceedings to allow for additional
analysis of the proposed rule change's consistency with Section 6(b)(5)
of the Act, which requires, among other things, that the rules of a
national securities exchange be ``designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade,'' and ``to protect investors and the public
interest.'' \36\
---------------------------------------------------------------------------

    \35\ Id.
    \36\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

IV. Procedure: Request for Written Comments

    The Commission requests that interested persons provide written
submissions of their views, data, and arguments with respect to the
issues identified above, as well as any other concerns they may have
with the proposal. In particular, the Commission invites the written
views of interested persons concerning whether the proposed rule
change, as modified by Amendment No. 2, is consistent with Section
6(b)(5) or any other provision of the Act, or the rules and regulations
thereunder. Although there do not appear to be any issues relevant to
approval or disapproval that would be facilitated by an oral
presentation of views, data, and arguments, the Commission will
consider, pursuant to Rule 19b-4 under the Act,\37\ any request for an
opportunity to make an oral presentation.\38\
---------------------------------------------------------------------------

    \37\ 17 CFR 240.19b-4.
    \38\ Section 19(b)(2) of the Act, as amended by the Securities
Acts Amendments of 1975, Public Law 94-29 (June 4, 1975), grants the
Commission flexibility to determine what type of proceeding--either
oral or notice and opportunity for written comments--is appropriate
for consideration of a particular proposal by a self-regulatory
organization. See Securities Acts Amendments of 1975, Senate Comm.
on Banking, Housing & Urban Affairs, S. Rep. No. 75, 94th Cong., 1st
Sess. 30 (1975).
---------------------------------------------------------------------------

    Interested persons are invited to submit written data, views, and
arguments regarding whether the proposed rule change, as modified by
Amendment No. 2, should be approved or disapproved by April 17, 2019.
Any person who wishes to file a rebuttal to any other person's
submission must file that rebuttal by May 1, 2019. The Commission asks
that commenters address the sufficiency of the Exchange's statements in
support of the proposal, which are set forth in Amendment No. 2,\39\ in
addition to any other comments they may wish to submit about the
proposed rule change.
---------------------------------------------------------------------------

    \39\ See supra note 7.
---------------------------------------------------------------------------

    In this regard, the Commission seeks comment on the Exchange's
statements that the Fund will not comply with the requirement in
Commentary .01(e) to NYSE Arca Rule 8.600-E that investments in OTC
Derivatives be limited to 20% of the assets of the Fund's portfolio.
Instead, the Fund's investments in OTC Derivatives would

be limited to 60% of the Fund's assets. Such OTC Derivatives may be
forwards, options, and swaps on commodities (which commodities are from
the same sectors as those included in the Reference Benchmark),
currencies, U.S. and non-U.S. equity securities, fixed income
securities (as defined in Commentary .01(b) to NYSE Arca Rule 8.600-E,
but excluding Short-Term Fixed Income Securities), interest rates, and
financial rates, or a basket or index of any of the foregoing. The
Commission specifically seeks comment on whether the Fund's proposed
investments in OTC Derivatives are consistent with the requirement that
the rules of a national securities exchange be ``designed to prevent
fraudulent and manipulative acts and practices, to promote just and
equitable principles of trade,'' and ``to protect investors and the
public interest.'' \40\ Has the Exchange has provided sufficient
information relating to OTC Derivatives, including the underlying
reference assets of such OTC Derivatives, for the Commission to
determine that trading of the Fund's Shares would be consistent with
the Act?
---------------------------------------------------------------------------

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

    Comments may be submitted by any of the following methods:

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-NYSEArca-2018-83 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NYSEArca-2018-83. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (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 website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549 on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-NYSEArca-2018-83 and should be submitted
by April 17, 2019. Rebuttal comments should be submitted by May 1,
2019.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\41\
---------------------------------------------------------------------------

    \41\ 17 CFR 200.30-3(a)(12); 17 CFR 200.30-3(a)(57).
---------------------------------------------------------------------------

Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019-05807 Filed 3-26-19; 8:45 am]
BILLING CODE 8011-01-P


APPENDIX 2 Survey Sample Size and Expected Response Rate 2 1 Survey Sample Size and Expected Response Rate Required Number of Completed Forms The required number of completed survey forms ( n) is derived from the level of precision required for the estimates and the desired level of confidence. A typical estimated quantity is the percentage ( P) of the population which has a particular characteristic. The uncertainty in this estimate is denoted by

P, the half width of the confidence interval for P. When estimating a fixed percentage P, the uncertainty at the specified level of confidence is determined by the number of completed questionnaire forms obtained in the survey. Conversely, for a fixed level of confidence, the required number of completed forms may be estimated by specifying a desired value for the half width of the confidence interval

P.

Table 1 shows the required sample sizes for two levels of confidence, 90 and 95% ( Levy and Lemeshow). If the desired

P is fixed at 2 percentage points, there is a different sample size required for each value of P, ranging from n = 502 at P = 5% to n = 2,641 at P = 50% for a 95%

confidence interval. Since many characteristics are being estimated in the survey, the safest approach is to use the highest number of required survey forms. This occurs when P = 50%. If n = 2,641 forms are completed, then characteristics which occur in less than half of the population will have a

P less than 2 percentage points. ( Note, however, that a

P of 2 percentage points may be a very large relative error for small values of P; i. e., if P = 2% and

P = 2%, then the relative error is 100%). 2 2 Table 1 a. Number of responses ( n) required for a 95% confidence interval of P ±

P.

P 1% 2% 3% 4% 5% 6% 7%

 P = 5% 2,007 502 223 125 80 56 41 10% 3,803 951 423 238 152 106 78 15% 5,388 1,347 599 337 216 150 110 20% 6,761 1,690 751 423 270 188 138 25% 7,923 1,981 880 495 317 220 162 30% 8,874 2,219 986 555 355 247 181 35% 9,614 2,403 1,068 601 385 267 196 40% 10,142 2,535 1,127 634 406 282 207 45% 10,459 2,615 1,162 654 418 291 213 50% 10,564 2,641 1,174 660 423 293 216 b. Number of responses ( n) required for a 90% confidence interval of P ±   P.

P 1% 2% 3% 4% 5% 6% 7%

 P = 5% 1,414 353 157 88 57 39 29 10% 2,679 670 298 167 107 74 55 15% 3,795 949 422 237 152 105 77 20% 4,763 1,191 529 298 191 132 97 25% 5,581 1,395 620 349 223 155 114 30% 6,251 1,563 695 391 250 174 128 35% 6,772 1,693 752 423 271 188 138 40% 7,144 1,786 794 446 286 198 146 45% 7,367 1,842 819 460 295 205 150 50% 7,442 1,860 827 465 298 207 152 2 3 Required Number of Telephone Contact Attempts Given an estimate of n, the required number of completed surveys, the number of telephone contact attempts ( N) that will be required is dependent on several additional factors that can only be estimated imprecisely. These factors include:

r 1  the Phase 1 response rate for agreeing to complete the initial screening, expressed as a percentage of initial telephone contacts;

e 1  the eligibility rate, which is the percentage of Phase 1 respondents who complete the screening that are eligible to complete the survey;

r 2  the Phase 1 response rate for agreeing to be called back to complete the survey, expressed as a percentage of the eligible Phase 1 respondents; and r 3  the Phase 2 response rate for completing the entire survey form, expressed as a percentage of the eligible Phase 1 respondents who agree to be called back to complete the survey.

Of the four factors above, the eligibility rate ( e 1) will have the greatest impact on the required number of telephone contacts. The large impact of this factor is due to the relatively low rate of incidence ( approximately 10 percent) of asthma in the general population. The survey design has no effect on this factor.

The remaining factors are three different types of response rates. Each of these three factors may be influenced by the survey design. Due to the salesman's " foot in the door" effect ( Hornik, et al.), it is expected that r 3 > r 2 > r 1. The foot in the door effect states that compliance with a small initial request significantly enhances the likelihood of compliance with a subsequent " target"

request. Hence, the smallest response with the largest negative effect is expected to be r 1, the response rate for completing the screening. The reasons for nonresponse in Phase 1 include no answer after repeated tries or an outright refusal to participate after initial contact is made.

In their 1988 analysis of survey results for Canadian smokers, Bull, et al., report telephone response rates by the cumulative number of call attempts made:

1 39%

2 67% 2 4 3 82%

4 88%

5 92%

6 96%

The dramatic increase in response that occurs with an increase in calling effort is confirmed in other U. S. studies. However, the very high level of response seen in Canada does not appear to be reflective of current conditions in the United States.

In the early 1990' s, Mishra, et al. report completion rates for telephone surveys with a minimum of four call attempts in Orange County, CA, that range from 46 percent to 59 percent, with a midpoint of 52.5 percent. The authors note that ownership of telephone answering machines was over 70 percent during this time period. Kristal, et al. report similar results in their telephone health survey in the State of Washington. This study was conducted in two stages: the first stage included up to 11 initial call attempts including callbacks; and the second stage included an additional 11 initial call attempts. Response rates in the first stage were 65 percent for women and 53 percent for men, with an average of approximately 59 percent. Only a few percentage points of improvement were reported to result from the second stage effort.

In summary, the early Canadian response rate appears to be significantly higher than those reported in later U. S. studies. The Canadian study represents a perhaps unobtainable goal for U. S. telephone surveys. Surveys taken in the Pacific coast area of the United States five years later show a marked decrease in response rates, despite a relatively high number of call attempts.

The average of the two midpoints for these studies is approximately 56 percent. This effect is partially due to the increased reliance on telephone answering machines in the United States in the 1990' s. The results also imply that residents along the Pacific coast simply were not home as often as Canadian residents in the late 1980' s. However, the lower response may also be due to the larger numbers of two income and single occupant residences on the Pacific coast. The currently planned survey will use random digit dialing with a minimum of seven call attempts for initial contact. The response rate for completing the screening is estimated to be r 1 = 60% ( 0.60),

reflecting approximately the Washington State study midpoint. This estimate may be compared to the midpoint for the Orange County study, augmented by eight percent given the increase in the number of contact attempts from four to seven. This increase is the same as that obtained in the Canadian study when contact attempts increase from four to six. 2 5 Successful completion of the screening phase will identify the actual number of eligible respondents. At this time, EPA estimates that approximately 10 percent of U. S. households have asthmatics ( Mannino). Hence, the eligibility rate is estimated to be e 1 = 0.10.

Respondents determined to be eligible in the first phase will be asked to participate in the main portion of the survey. Not all eligible households will agree to participate. However, households are more likely to agree to participate once the screening is completed. Hornik, et al. report that having a " foot in the door" increased response rates from 48 percent to 59 percent in Israel,

amounting to a relative increase in response of approximately 23 percent. Hence, the estimated response rate for eligible respondents agreeing to participate in the second phase of the survey is r 2 = 0.74.

In Phase 2, eligible respondents who have completed the screening and have agreed to participate in the full survey effort will be contacted to complete the full survey. At this stage, the primary obstacle will be reaching the respondent when they are at home and at a convenient time.

Information about the best time for future contacts will be obtained when respondents agree to participate in the full survey. This will reduce the chance that a respondent who has agreed to participate cannot be contacted. However, it is likely that passive refusals and terminations will be encountered at this phase. Passive refusal occurs when a respondent who has agreed to participate requests that the interviewer " call back later." After several attempts, with the same result, it becomes obvious that the respondent does not really intend to participate but has not given a direct refusal. Passive refusals may also occur when telephone answering machines are used to " screen" calls. Terminations occur when the respondent refuses to complete the entire interview. Longer interviews such as the currently planned survey incur the risk of higher termination rates.

A passive refusal rate of 9.6 percent for high effort surveys is reported in Mishra, et al.

Termination rates of approximately five percent are indicated in Hornik, et al. Hence, the estimate for the phase 2 response rate is r 3 = 0.85.

The total number of required telephone contacts is estimated as:

N = n / ( e 1 r 1 r 2 r 3 ). 2 6 Using the hypothetical goal of n = 2,641 completed forms as derived above, the required number of initial telephone contact attempts is estimated to be:

N = n / ( 0.10)( 0.60)( 0.74)( 0.85) = 2,641 / 0.03774 = 69,979.

If other precision goals are desired, the required number of completed forms shown in the bottom row of Table 1a or 1b should be divided by 0.03774 to estimate the required number of contact attempts.

For example, EPA has set a goal of three percentage points at the 90% confidence interval for each of its sample subsets ( i. e., children with asthma and low income adults with asthma). For a goal of three percentage points, the sample size required at P = 50% is n = 827. To achieve this goal for low income populations, EPA intends to over sample in communities known to have a high percentage of low income households. However, as information identifying the nation's population of child asthmatics does not exist, EPA must increase the size of its overall sample to achieve its goal for children. EPA estimates that one in four individuals who suffer from asthma are children ( Mannino). Therefore, in order to achieve a precision rate of +/ 3 percent at the 90% confidence interval the total number of required initial telephone contact attempts is estimated as N = n / ( 0.25)( 0.10)( 0.60)( 0.74)( 0.85) = 827/ 0.009435 = 87,652.

Note: Appendix 7 provides a bibliography of cited references. APPENDIX 3 Executive Order 13045 3 1 Executive Order 13045 April 21, 1997 Protection of Children from Environmental Health Risks and Safety Risks By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered as follows:

Section 1. Policy.

1 101. A growing body of scientific knowledge demonstrates that children may suffer disproportionately from environmental health risks and safety risks. These risks arise because:

children's neurological, immunological, digestive, and other bodily systems are still developing;

children eat more food, drink more fluids, and breathe more air in proportion to their body weight than adults; children's size and weight may diminish their protection from standard safety features;

and children's behavior patterns may make them more susceptible to accidents because they are less able to protect themselves. Therefore, to the extent permitted by law and appropriate, and consistent with the agency's mission, each Federal agency:

( a) shall make it a high priority to identify and assess environmental health risks and safety risks that may disproportionately affect children; and ( b) shall ensure that its policies, programs, activities, and standards address disproportionate risks to children that result from environmental health risks or safety risks.

1 102. Each independent regulatory agency is encouraged to participate in the implementation of this order and comply with its provisions.

2 201. " Federal agency" means any authority of the United States that is an agency under 44 U. S. C. 3502 ( 1) other than those considered to be independent regulatory agencies under 44 U. S. C. 3502 ( 5). For purposes of this order, " military departments," as defined in 5 U. S. C. 102,

are covered under the auspices of the Department of Defense. 3 2 2 202. " Covered regulatory action" means any substantive action in a rulemaking, initiated after the date of this order or for which a Notice of Proposed Rulemaking is published 1 year after the date of this order, that is likely to result in a rule that may:

( a) be " economically significant" under Executive Order 12866 ( a rulemaking that has an annual effect on the economy of $ 100 million or more or would adversely affect in a material way the economy, a sector of the economy, productivity, competition,

jobs, the environment, public health or safety, or State, local, or tribal governments or communities); and ( b) concern an environmental health risk or safety risk that an agency has reason to believe may disproportionately affect children.

2 203. " Environmental health risks and safety risks" mean risks to health or to safety that are attributable to products or substances that the child is likely to come in contact with or ingest ( such as the air we breathe, the food we eat, the water we drink or use for recreation, the soil we live on, and the products we use or are exposed to).

Sec. 3. Task Force on Environmental Health Risks and Safety Risks to Children.

3 301. There is hereby established the Task Force on Environmental Health Risks and Safety Risks to Children (" Task Force").

3 302. The Task Force will report to the President in consultation with the Domestic Policy Council, the National Science and Technology Council, the Council on Environmental Quality, and the Office of Management and Budget ( OMB).

3 303. Membership. The Task Force shall be composed of the:

( a) Secretary of Health and Human Services, who shall serve as a Co Chair of the Council;

( b) Administrator of the Environmental Protection Agency, who shall serve as a Co

Chair of the Council; 3 3 ( c) Secretary of Education;

( d) Secretary of Labor;

( e) Attorney General;

( f) Secretary of Energy;

( g) Secretary of Housing and Urban Development;

( h) Secretary of Agriculture;

( i) Secretary of Transportation;

( j) Director of the Office of Management and Budget;

( k) Chair of the Council on Environmental Quality;

( l) Chair of the Consumer Product Safety Commission;

( m) Assistant to the President for Economic Policy;

( n) Assistant to the President for Domestic Policy;

( o) Assistant to the President and Director of the Office of Science and Technology Policy;

( p) Chair of the Council of Economic Advisors; and ( q) Such other officials of executive departments and agencies as the President may,

from time to time, designate.

Members of the Task Force may delegate their responsibilities under this order to subordinates. 3 4 3 304. Functions. The Task Force shall recommend to the President Federal strategies for children's environmental health and safety, within the limits of the Administration's budget, to include the following elements:

( a) statements of principles, general policy, and targeted annual priorities to guide the Federal approach to achieving the goals of this order;

( b) a coordinated research agenda for the Federal Government, including steps to implement the review of research databases described in Section 4 of this order;

( c) recommendations for appropriate partnerships among Federal, State, local, and tribal governments and the private, academic, and nonprofit sectors;

( d) proposals to enhance public outreach and communication to assist families in evaluating risks to children and in making informed consumer choices;

( e) an identification of high priority initiatives that the Federal Government has undertaken or will undertake in advancing protection of children's environmental health and safety; and ( f) a statement regarding the desirability of new legislation to fulfill or promote the purposes of this order. APPENDIX 4 Asthma in America Survey Confirmation 4 1 Page 1 of 1 Kelly Ralston From: Behrens, Lisa R < lb48689@ GlaxoWellcome. com>

To: < kralston@ scainc. com>

Cc: ` Enright, Pat' < patricia. enright@ dc. ogilvypr. com>

Sent: Thursday, December 14, 2000 10: 58 AM Subject: Asthma in America Dear Kelly,

Your inquiry about the Asthma in America Survey was forwarded to me, at Glaxo Wellcome ( survey sponsor). We did not investigate asthma triggers or trigger control to any extent in the survey, but rather, focused on symptom history, asthma severity, perception of control, medical management,

physical/ lifestyle limitations, etc. A copy of the executive summary can be accessed at www. asthmainamerica. com. The questions, which yielded the survey data in this summary, are located at the bottom of each graph. I'd be happy to put a hard copy of the executive summary in the mail to you. If you have any other questions, feel free to get in touch with me at numbers,

addresses, listed below. Thanks. APPENDIX 5 Draft Federal Register Notice 5 1 U. S. ENVIRONMENTAL PROTECTION AGENCY [ FRL]

Agency Information Collection Activities: Proposed Collection; Comment Request;

National Survey on Environmental Management of Asthma AGENCY: U. S. Environmental Protection Agency ( EPA).

ACTION: Notice.

SUMMARY: In compliance with the Paperwork Reduction Act ( 44 U. S. C. 3501 et seq.), this document announces that EPA is planning to submit the following proposed Information Collection Request ( ICR) to the Office of Management and Budget ( OMB): National Survey on Environmental Management of Asthma, EPA ICR Number 1996.01. Before submitting the ICR to OMB for review and approval, EPA is soliciting comments on specific aspects of the proposed information collection as described below.

DATES: Comments must be submitted on or before [ Insert date 60 days after publication in the FEDERAL REGISTER].

ADDRESSES: To obtain a copy of the ICR without charge, contact: Dr. Susan Conrath, Indoor Environments Division, Office of Radiation and Indoor Air, U. S. Environmental Protection Agency, 1200 Pennsylvania Avenue, NW, ( 6609J), Washington, D. C. 20460.

FOR FURTHER INFORMATION CONTACT: Dr. Susan Conrath by phone at ( 202) 564 9389 or by e mail at conrath. susan@ epa. gov.

SUPPLEMENTARY INFORMATION:

Affected entities: Entities potentially affected by this action are all individuals throughout the United States with publicly listed residential telephone numbers. 5 2 Title: National Survey on Environmental Management of Asthma ( EPA ICR No.

1996.01) expiring / / .

Abstract: EPA is working to integrate the management of environmental factors with the medical treatment of asthma, particularly among children and low income populations. To evaluate the effectiveness of its current outreach efforts, EPA proposes to collect data from individual U. S. households through a telephone survey. This survey will be used to gain information regarding the number of individuals with asthma who have taken steps to improve the quality of their indoor environment as part of their approach to managing the disease, as well as any barriers they may have encountered while attempting to do so. EPA will compare the data gained from this survey to the Agency's established Government Performance and Results Act of 1993 ( GPRA) goal. Specifically, EPA's goal is that 2.5 million people with asthma, including one million children and 200,000 low income adults, will have taken steps to reduce their exposure to indoor environmental asthma triggers by 2005.

EPA will conduct this survey in two phases. First, EPA will contact 52,591 people who will participate in a screening survey. These individuals will be chosen randomly from U. S.

households with a publicly listed telephone number. EPA expects that 10 percent, or 5,259 individuals, will either have asthma or live in a household with someone who does. After responding to several screening questions, adult asthmatics and parents of children with asthma will be invited to participate in a longer, more in depth telephone survey. In this second phase,

EPA expects to obtain completed survey responses from 3,308 individuals. This sample size will allow the Agency to draw statistically valid conclusions regarding the number of people with asthma who are taking action to reduce their exposure to environmental triggers. 5 3 EPA intends to over sample in communities known to have a high percentage of lowincome households to ensure that the Agency is able to evaluate the effectiveness of its outreach efforts to this target population.

The National Survey on Environmental Management of Asthma is voluntary and will be conducted once during the period in which this ICR is in effect. EPA does not expect to receive confidential information from the individuals who voluntarily participate in the survey. However,

if a respondent does consider the information submitted to be of a proprietary nature, EPA will assure its confidentiality based on the provisions of 40 CFR Part 2, Subpart B, " Confidentiality of Business Information."

An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid OMB control number. The OMB control numbers for EPA's regulations are listed in 40 CFR Part 9 and 48 CFR Chapter 15.

The EPA would like to solicit comments to:

( i) evaluate whether the proposed collection of information is necessary for the proper performance of the functions of the Agency, including whether the information will have practical utility;

( ii) 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;

( iii) enhance the quality, utility, and clarity of the information to be collected; and ( iv) 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. 5 4 Burden Statement: EPA estimates the annual public reporting and record keeping burden for this collection of information to range from between 1.5 minutes and 16 minutes per response,

depending on whether or not the survey respondent has asthma or lives with someone who has asthma. Burden means the total time, effort, or financial resources expended by persons to generate, maintain, retain, or disclose or provide information to or for a Federal agency. This includes the time needed to: review instructions; develop, acquire, install, and utilize technology and systems for the purposes of collecting, validating, and verifying information, processing and maintaining information, and disclosing and providing information; adjust the existing ways to comply with any previously applicable instructions and requirements; train personnel to be able to respond to a collection of information; search data sources; complete and review the collection of information; and transmit or otherwise disclose the information.

This survey effort is expected to cost approximately $ 0.75 per respondent living in a nonasthmatic household; $ 1.75 per respondent living in an asthmatic household, but participating only in the screening survey; and $ 8.00 per respondent participating in both the screening survey and the survey itself. Respondents will incur no capital, start up costs, or operation and maintenance costs as a result of this survey.

Dated: ________________ [ Signature of Program Official] Mary T. Smith Director, Indoor Environments Division Billing Code: 6560 50 P APPENDIX 6 Sampling Frame for EPA's National Survey on Environmental Management of Asthma 6 1 APPENDIX 6 The Sampling Frame The National Survey on Environmental Management of Asthma will be administered to members of the general population selected randomly from all households in the United States with publicly listed telephone numbers. EPA estimates that approximately 87,652 households will comprise the sampling frame for this survey. EPA intends to over sample in communities known to have a high percentage of low income households to ensure that the Agency gains sufficient information from this particular population to draw valid conclusions regarding its outreach efforts. 2000 Census information, provided by the U. S. Census Bureau, will be used in conjunction with the telephone listing to identify low income populations. APPENDIX 7 Bibliography 7 1 APPENDIX 7 Bibliography Bull, S. B., L. L. Peterson, M. J. Ashley, and N. M. Lefcoe, " Intensity of Followup: Effects on Estimates in a Population Telephone Survey with an Extension of Kish's Approach," American Journal of Epidemiology, Vol. 127, No. 3, 1988.

Hemmelgarn, B., " Increasing Response Rates in Community Health Surveys," Canadian Journal of Public Health/ Revue Canadienne de Sante Publique, Vol. 82, No. 5, 1991.

Hornik, J., T. Zaig, D. Shadmon, and G. I. Barbash, " Comparison of Three Inducement Techniques to Improve Compliance in a Health Survey Conducted by Telephone," Public Health Reports, Vol. 105, No. 5, 1990.

Kristal, A. R., et al., " Effects of Enhanced Calling Efforts on Response Rates, Estimates of Health Behavior, and Costs in a Telephone Health Survey Using Random Digit Dialing," Public Health Reports, Vol. 108, No. 3, 1993.

Levy, P. S. and S. Lemeshow, Sampling of Populations: Methods and Applications, John Wiley & Sons, New York, NY, 1991.

Mannino, D. M., Personal communication based on the National Health Interview Survey.

National Center for Environmental Health, Centers for Disease Control and Prevention, 2000.

Mishra, S. I., D. Dooley, R. Catalano, and S. Serxner, " Telephone Health Surveys: Potential Bias From Noncompletion," American Journal of Public Health, Vol. 83, No. 1, 1993.


[Federal Register Volume 77, Number 91 (Thursday, May 10, 2012)]
[Notices]
[Pages 27505-27508]
[FR Doc No: 2012-11245]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-66923; File No. SR-NSX-2012-05]

Self-Regulatory Organizations; National Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend Its Rules Regarding Routing of Limit Orders

May 4, 2012.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on April 26, 2012, National Stock Exchange, Inc. (``NSX'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by the Exchange. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------

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

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

    National Stock Exchange, Inc. (``NSX[supreg]'' or ``Exchange'') is
proposing to modify the text of NSX Rule 11.15 to harmonize it with
current system functionality of routed limit orders.
    The text of the proposed rule change is available on the Exchange's
Web site at http://www.nsx.com, at the principal office of the
Exchange, and at the Commission's Public Reference Room.

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

    In its filing with the Commission, the Exchange 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 Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant parts of such
statements.

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

1. Purpose
    NSX Rule 11.15(a)(ii)(A) (Routing to Away Trading Centers)
currently provides that, for orders other than sweep orders that are,
consistent with the terms of the order, routed to away trading centers,
the order will be converted into one or more limit orders, as
necessary, to be matched for execution against each protected quotation
at the Protected National Best Bid or Offer (``NBBO'') available at
away trading centers. With respect to the price of the routed limit
order, Rule 11.15(a)(ii)(A) currently provides: ``Each such converted
limit order shall be priced at the price of the protected quotation
that it is to be matched for execution against'' (italics added).
    Notwithstanding the text of Rule 11.15(a)(ii)(A), the Exchange's
trading system, NSX BLADE[supreg] (``Blade''), currently prices each
such converted limit order at a price that is one trading increment
inside the best bid or offer on the NSX book, but in any case not
higher (if a bid) or lower (if an offer) than the limit price specified
by the terms of the original order. The proposed edits to Rule
11.15(a)(ii)(A) would conform the text of the rules to current Blade
functionality. Specifically, new subsections (1) and (2) are proposed
to be added to Rule 11.15(a)(ii)(A). Subsection (1) would address the
pricing of routed market orders (the treatment of which remains
unchanged, namely, such orders shall be routed at the price of the
protected quotation that it is to be matched against for execution).
Subsection (2) would address the pricing of converted limit orders, and
specifies in clauses (x) and (y) the converted limit price for each a
buy and sell order, respectively. In the case of a buy order, the
converted limit price shall be the lower of the limit price of the
original order and one increment lower than the lowest offer on the NSX
book. In the case of a sell order, the converted limit price shall be
the higher of the limit price of the original order and one increment
higher than the highest bid on the NSX book.
    The proposed pricing methodology benefits ETP Holders by minimizing
the risk of non-fills or delayed fills that might arise as a result of
the order being routed at the NBBO price. NBBO quotes may flicker and/
or be cancelled by the time a routed order arrives at the away
destination. Under such circumstances, if priced at the NBBO, a routed
limit order may be rejected by the away destination and, upon return to
NSX, undergo a re-evaluation within Blade (consistent with Regulation
NMS and NSX rules), after which it may be subjected to one or more
repeat cycles of the foregoing process (``unfilled routing cycles'').
The orders are routed as Immediate or Cancel (``IOC'') orders and thus
retain the full protections of Rule 611. By re-pricing routed limit
orders as proposed above, the chances are maximized that an ETP
Holder's routed limit order is filled quickly and at the best price
available (and never worse than the original order's limit price), and
not at a price that can otherwise be filled against the NSX book.
    The following examples reflect both the current functionality of
routed limit orders in Blade and also routed limit order pricing under
the proposed rules:

                                Example 1
------------------------------------------------------------------------
        Original order             NSX best offer    National best offer
------------------------------------------------------------------------
Buy Limit @ 10.10.............               10.05                 9.95
------------------------------------------------------------------------

    Result: The original limit order is converted to a buy limit order
at a price of $10.04 (one increment lower than the lowest offer on the
NSX book, which is lower than the original order limit price of
$10.10), and routed to the market displaying the National Best Offer of
$9.95. The order may then be executed at that away market, in whole or
in part, subject to the applicable trading rules of

that trading center.\3\ In this example, an execution at the away
market would generally be at a price of $9.95.\4\ Current rule text
would price the routed limit order at $9.95 (the price of the protected
quotation against which it is matched for execution). This pricing
methodology (which routes the buy order at $10.04 rather than $9.95) is
beneficial to an ETP Holder because it minimizes the chances of
repeated unfilled routing cycles as described above, intends to access
the best priced displayed liquidity, and does not route the order at a
price that can be filled against the NSX book.
---------------------------------------------------------------------------

    \3\ See NSX Rule 11.15(c)(i).
    \4\ This predicted result is dependent on the rules of the away
market and assumes certain things, including without limitation the
absence of an un-displayed, lower priced offer at the away market
that would interact at a lower price, and that the away market's
displayed NBO of 9.95 has not changed (e.g., been cancelled or
improved by a lower priced offer) by the time the routed order is
received at the away trading center.

                                Example 2
------------------------------------------------------------------------
        Original order             NSX best offer    National best offer
------------------------------------------------------------------------
Buy Limit @ 10.00.............               10.05                 9.95
------------------------------------------------------------------------

    Result: The original limit order is converted to a buy limit order
at a price of $10.00 (the limit price of the original order, which is
lower than one increment lower than the lowest offer on the NSX book)
and routed to the market displaying the National Best Offer of $9.95.
The order may then be executed at that away market, in whole or in
part, subject to the applicable trading rules of that trading center.
In this example, an execution at the away market would generally be at
a price of $9.95.\5\ Current rule text would price the routed limit
order at $9.95 (the price of the protected quotation against which it
is matched for execution). This pricing methodology (which routes the
buy order at $10.00 rather than $9.95) is beneficial to an ETP Holder
because it minimizes the chances of repeated unfilled routing cycles as
described above, intends to access the best priced displayed liquidity,
and does not route the order at a price higher than the limit price.
---------------------------------------------------------------------------

    \5\ Id.

                                Example 3
------------------------------------------------------------------------
        Original order             NSX best offer    National best offer
------------------------------------------------------------------------
Buy Limit @ 9.95..............               10.05                 9.95
------------------------------------------------------------------------

    Result: The original limit order is converted to a buy limit order
at a price of $9.95 (the limit price of the original order, which is
lower than one increment lower than the lowest offer on the NSX book)
and routed to the market displaying the National Best Offer of $9.95.
The order may then be executed at that away market, in whole or in
part, subject to the applicable trading rules of that trading center.
In this example, an execution at the away market would generally be at
a price of $9.95.\6\ Current rule text would likewise price the routed
limit order at $9.95 (the price of the protected quotation against
which it is matched for execution).
---------------------------------------------------------------------------

    \6\ Id.

                                Example 4
------------------------------------------------------------------------
        Original order              NSX best bid      National best bid
------------------------------------------------------------------------
Sel Limit @ 9.90..............                9.95                10.05
------------------------------------------------------------------------

    Result: The original limit order is converted to a sell limit order
at a price of $9.96 (one increment higher than the highest bid on the
NSX book, which is higher than the original order limit price of $9.90)
and routed to the market displaying the National Best Bid of $10.05.
The order may then be executed at that away market, in whole or in
part, subject to the applicable trading rules of that trading center.
In this example, an execution at the away market would generally be at
a price of $10.05.\7\ Current rule text would price the routed limit
order at $10.05 (the price of the protected quotation against which it
is matched for execution). This pricing methodology (which routes the
sell order at $9.96 rather than $10.05) is beneficial to an ETP Holder
because it minimizes the chances of repeated unfilled routing cycles as
described above, intends to access the best priced displayed liquidity,
and does not route the order at a price that can be filled against the
NSX book.
---------------------------------------------------------------------------

    \7\ This predicted result is dependent on the rules of the away
market and certain things, including without limitation the absence
of an un-displayed, higher priced bid at the away market that would
interact at a higher price, and that the away market's displayed NBB
of 10.05 has not changed (e.g., been cancelled or improved by a
higher priced bid) by the time the routed order is received at the
away trading center.

                                Example 5
------------------------------------------------------------------------
        Original order              NSX best bid      National best bid
------------------------------------------------------------------------
Sell Limit @ 10.00............                9.95                10.05
------------------------------------------------------------------------

    Result: The original limit order is converted to a sell limit order
at a price of $10.00 (the limit price of the original order, which is
higher than one increment higher than the highest bid on the NSX book)
and routed to the market displaying the National Best Bid of $10.05.
The order may then be executed at that away market, in whole or in
part, subject to the applicable trading rules of that trading center.
In this example, an execution at the away market would generally be at
a price of $10.05.\8\ Current rule text would price the routed limit
order at $10.05 (the price of the protected quotation against which it
is matched for execution). This pricing methodology (which routes the
sell order at $10.00 rather than $10.05) is beneficial to an ETP Holder
because it minimizes the chances of repeated unfilled routing cycles as
described above, intends to access the best priced displayed liquidity,
and does not route the order at a price higher than the limit price.
---------------------------------------------------------------------------

    \8\ Id.

                                Example 6
------------------------------------------------------------------------
        Original order              NSX best bid      National best bid
------------------------------------------------------------------------
Sell Limit @ 10.05............                9.95                10.05
------------------------------------------------------------------------

    Result: The original limit order is converted to a sell limit order
at a price of $10.05 (the limit price of the original order, which is
higher than one increment higher than the highest bid on the NSX book)
and routed to the market displaying the National Best Bid of $10.05.
The order may then be executed at that away market, in whole or in
part, subject to the applicable trading rules of that trading center.
In this example, an execution at the away market would generally be at
a price of $10.05.\9\ Current rule text would likewise price the routed
limit order at $10.05 (the price of the protected quotation against
which it is matched for execution).
---------------------------------------------------------------------------

    \9\ Id.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with
Section 6 of the Act,\10\ and the rules and regulations thereunder and,
in particular, the requirements of Section 6(b) of the Act.\11\
Specifically, the Exchange believes the modification of Rule 11.15
furthers the objective of Section 6(b)(1) of the Act because it aligns
the text of the rule with the actual functionality regarding how limit
orders are currently routed. By conforming the text of the Exchange's
rules to accurately reflect the method by which the Exchange's system
currently re-prices routed limit orders, the proposed rule change
harmonizes the Exchange's trading system functionality with the text of
NSX rules and thereby promotes clarity and eliminates confusion. In
addition, the manner in which limit orders are routed by the Exchange
as described herein allows an ETP Holder's routed limit order to be
filled more quickly and at the best price available (and never worse
than the original order's limit price), and not at a price that can
otherwise be filled against the NSX book. The Exchange believes that
this manner of pricing routed limit orders best serves its ETP Holders.
Accordingly, the Exchange believes that the proposed rule change
promotes just and equitable principles of trade, removes impediments,
and perfects the mechanism of a free and open market and a national
market system and, in general, protects investors and the public
interest.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78f.
    \11\ 15 U.S.C. 78f(b).
---------------------------------------------------------------------------

    The proposed rule change provides transparency and certainty with
respect to routed limit orders by providing detail on precisely how
Blade prices and routes limit orders to away market centers. In so
doing, the proposed rule change promotes the maintenance of a fair and
orderly market, the protection of investors and the protection of the
public interest, consistent with the Act and the rules promulgated
thereunder.

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

    The Exchange does not believe that the proposed rule change will
impose any inappropriate burden on competition.

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

    Written comments on the proposed rule change were neither solicited
nor received.

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

    Because the proposed rule change does not (i) significantly affect
the protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative for 30
days from the date on which it was filed, or such shorter time as the
Commission may designate if consistent with the protection of investors
and the public interest, the proposed rule change has become effective
pursuant to Section 19(b)(3)(A) of the Act \12\ and Rule 19b-4(f)(6)
thereunder.\13\ At any time within 60 days of the filing of such
proposed rule change, the Commission summarily may temporarily suspend
such rule change if it appears to the Commission that such action is
necessary or appropriate in the public interest, for the protection of
investors, or otherwise in furtherance of the purposes of the Act.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78s(b)(3)(A).
    \13\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written
notice of its intent to file the proposed rule change along with a
brief description and the text of the proposed rule change, at least
five business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission.
---------------------------------------------------------------------------

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-NSX-2012-05 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NSX-2012-05. This file
number should be included on the subject line if email is used. To help
the Commission process and review your

comments more efficiently, please use only one method. The Commission
will post all comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent
amendments, all written statements with respect to the proposed rule
change that are filed with the Commission, and all written
communications relating to the proposed rule change between the
Commission and any person, other than those that may be withheld from
the public in accordance with the provisions of 5 U.S.C. 552, will be
available for Web site viewing and printing in the Commission's Public
Reference Room, 100 F Street NE., Washington, DC 20549, on official
business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of
the filing also will be available for inspection and copying at the
principal office of the Exchange. All comments received will be posted
without change; the Commission does not edit personal identifying
information from submissions. You should submit only information that
you wish to make available publicly.
    All submissions should refer to File Number SR-NSX-2012-05 and
should be submitted on or before May 31, 2012.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
---------------------------------------------------------------------------

    \14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-11245 Filed 5-9-12; 8:45 am]
BILLING CODE 8011-01-P