[Federal Register Volume 83, Number 197 (Thursday, October 11, 2018)]
[Notices]
[Pages 51521-51529]
[FR Doc No: 2018-22096]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-84367; File No. SR-CboeBZX-2018-001]

Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of
Filing of Amendment No. 2 to a Proposed Rule Change To List and Trade
Shares of the GraniteShares Bitcoin ETF and the GraniteShares Short
Bitcoin ETF, a Series of the GraniteShares ETP Trust, Under Rule
14.11(f)(4), Trust Issued Receipts

October 4, 2018.
    On January 5, 2018, Cboe BZX Exchange, Inc. (``Exchange'' or
``BZX'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (the ``Act'') \1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change to list and trade shares of the GraniteShares
Bitcoin ETF and the GraniteShares Short Bitcoin ETF issued by the
GraniteShares ETP Trust under BZX Rule 14.11(f)(4). The proposed rule
change was published for comment in the Federal Register on January 18,
2018.\3\
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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. 82484 (Jan. 11,
2018), 83 FR 2704 (Jan. 18, 2018).
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    On February 22, 2018, pursuant to Section 19(b)(2) of the Exchange
Act, 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.\4\ On April 5, 2018, the Commission instituted
proceedings under Section 19(b)(2)(B) of the Act \5\ to determine
whether to approve or disapprove the proposed rule change.\6\ On June
28, 2018, the Commission extended the period for consideration of the
proposed rule change to September 15, 2018.\7\ As of August 21, 2018,
the Commission had received 15 comments on the proposed rule change.\8\
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    \4\ See Securities Exchange Act Release No. 82759 (Feb. 22,
2018), 83 FR 8719 (Feb. 28, 2018).
    \5\ 15 U.S.C. 78s(b)(2)(B).
    \6\ See Securities Exchange Act Release No. 82995 (Apr. 5,
2018), 83 FR 15425 (Apr. 10, 2018).
    \7\ See Securities Exchange Act Release No. 83548 (June 28,
2018), 83 FR 31246 (July 3, 2018).
    \8\ All comments on the proposed rule change are available on
the Commission's website at: https://www.sec.gov/comments/sr-cboebzx-2018-001/cboebzx2018001.htm.
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    On August 21, 2018, BZX filed Amendment No. 1 to the proposal,
which amended and replaced in its entirety the proposal as originally
filed on January 5, 2018. On August 22, 2018, BZX filed Amendment No. 2
to the proposal, which amended and replaced in its entirety the
proposal as amended on August 21, 2018.
    On August 22, 2018, the Division of Trading and Markets
(``Division''), acting by delegated authority, issued an order
disapproving the proposed rule change.\9\ On August 23, 2018, the
Secretary of the Commission notified BZX that, pursuant to Commission
Rule of Practice 431,\10\ the Commission would review the Division's
action pursuant to delegated authority and that the Division's action
pursuant to delegated authority had been automatically stayed.\11\ On
October 4, 2018, the Commission issued an Order Scheduling Filing of
Statements on Review, setting November 5, 2018 as the date by which any
party or other person may file a statement in support of, or in
opposition to, the action by the Division pursuant to delegated
authority.\12\
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    \9\ See Securities Exchange Act Release No. 83913 (Aug. 22,
2018), 83 FR 43923 (Aug. 28, 2018).
    \10\ See 17 CFR 201.431.
    \11\ See Letter from Secretary of the Commission to Kyle Murray,
Assistant General Counsel, BZX (Aug. 23, 2018), available at https://www.sec.gov/rules/sro/cboebzx/2018/34-83913-letter-from-secretary.pdf.
    \12\ See Securities Exchange Act Release No. 84368 (Oct. 4,
2018).
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    Pursuant to Section 19(b)(1) of the Act,\13\ and Rule 19b-4
thereunder,\14\ notice is hereby given that on August 22, 2018, BZX
filed with the Commission Amendment No. 2 to 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 from interested persons on the proposed rule change, as
modified by Amendment No. 2.
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    \13\ 15 U.S.C. 78s(b)(1).
    \14\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange filed a proposal to list and trade shares of the
GraniteShares Bitcoin ETF and the GraniteShares Short Bitcoin ETF (each
a ``Fund'' and, collectively, the ``Funds''), a series of the
GraniteShares ETP Trust (the ``Trust''), under Rule 14.11(f)(4)
(``Trust Issued Receipts''). The shares of the Funds are referred to
herein as the ``Shares.''

    The text of the proposed rule change is available at the Exchange's
website at www.markets.cboe.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
    This Amendment No. 2 to SR-CboeBZX-2018-001 amends and replaces in
its entirety Amendment No. 1 to the proposal as submitted on August 21,
2018, which amended and replaced in its entirety the proposal as
originally submitted on January 5, 2018. The Exchange submits this
Amendment No. 2 in order to clarify certain points and add additional
details about the Fund.
    The Exchange proposes to list and trade shares of the GraniteShares
Bitcoin ETF (the ``Long Fund'') and the GraniteShares Short Bitcoin ETF
(the ``Short Fund'') under Rule 14.11(f)(4), which governs the listing
and trading of Trust Issued Receipts \15\ on the Exchange.\16\
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    \15\ Rule 14.11(f)(4) applies to Trust Issued Receipts that
invest in ``Financial Instruments.'' The term ``Financial
Instruments,'' as defined in Rule 14.11(f)(4)(A)(iv), means any
combination of investments, including cash; securities; options on
securities and indices; futures contracts; options on futures
contracts; forward contracts; equity caps, collars and floors; and
swap agreements.
    \16\ The Commission approved BZX Rule 14.11(f)(4) in Securities
Exchange Act Release No. 68619 (January 10, 2013), 78 FR 3489
(January 16, 2013) (SR-BATS-2012-044).
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    The Shares will be offered by the Trust, which was established as a
Delaware statutory trust on November 7, 2016. The Trust will not be
registered as an investment company under the Investment Company Act of
1940 and is not required to register under such act.\17\ The Trust is
registered as a commodity pool under the Commodity Exchange Act
(``CEA'').\18\ The Shares of the Trust will be registered with the
Commission by means of the Trust's registration statement on Form S-1
(the ``Registration Statement'') under the Securities Act of 1933 (the
``Securities Act''). The Registration Statement was filed on December
15, 2017 and the Registration Statement will be effective as of the
date of any offer and sale pursuant to the Registration Statement.\19\
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    \17\ 15 U.S.C. 80a-1.
    \18\ 17 U.S.C. 1.
    \19\ See Registration Statement on Form S-1, dated December 15,
2017 (File No. 333-222109). The descriptions of the Trust and the
Shares contained herein are based, in part, on information in the
Registration Statement.
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    GraniteShares Advisors LLC (the ``Sponsor'') serves as the Trust's
sponsor and commodity pool operator and is a member of the National
Futures Association (the ``NFA''). As a member of the NFA, the Sponsor
is subject to NFA standards relating to fair trade practices, financial
condition, and consumer protection. Bank of New York Mellon serves as
administrator, custodian, and transfer agent for the Funds. Foreside
Fund Services, LLC (``Marketing Agent'') serves as the distributor for
the Trust.
    The Funds are not actively managed by traditional methods (e.g., by
effecting changes in the composition of a portfolio on the basis of
judgments relating to economic, financial and market considerations
with a view toward obtaining positive results under all market
conditions) other than for cash management purposes and the rolling
methodology employed by the Sponsor described below.
Bitcoin Futures Contracts
    Prior to listing a new commodity futures contract, a designated
contract market must either submit a self-certification to the CFTC
that the contract complies with the CEA and CFTC regulations or
voluntarily submit the contract for CFTC approval. This process applies
to all futures contracts and all commodities underlying the futures
contracts, whether the new futures contracts are related to oil, gold,
or any other commodity.\20\ On December 1, 2017, it was announced \21\
that both Cboe Futures Exchange, Inc. (``CFE'') and Chicago Mercantile
Exchange, Inc. (``CME'') had self-certified with the CFTC new contracts
for bitcoin \22\ futures products.\23\ While the CFE bitcoin futures
contracts (``XBT Futures'' and the ``Benchmark Futures Contracts'')
\24\ and the CME bitcoin futures contracts (``CME Futures'') \25\ will
differ in certain of their implementation details, both contracts will
generally trade and settle like any other cash-settled commodity
futures contracts.\26\
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    \20\ Section 1a(9) of the CEA defines commodity to include,
among other things, ``all services, rights, and interests in which
contracts for future delivery are presently or in the future dealt
in.'' The definition of commodity is broad. 7 U.S.C. 1a(9).
    \21\ See ``CFTC Statement on Self-Certification of Bitcoin
Products by CME, CFE and Cantor Exchange,'' dated December 1, 2017,
available at http://www.cftc.gov/PressRoom/PressReleases/pr7654-17.
    \22\ Bitcoin is a digital asset based on the decentralized, open
source protocol of the peer-to-peer bitcoin computer network (the
``Bitcoin Network''). No single entity owns or operates the Bitcoin
Network; the infrastructure is collectively maintained by a
decentralized user base. The Bitcoin Network is accessed through
software, and software governs bitcoin's creation, movement, and
ownership. The value of bitcoin is determined by the supply of and
demand for bitcoin on websites that facilitate the transfer of
bitcoin in exchange for government-issued currencies, and in private
end-user-to-end-user transactions.
    \23\ Bitcoin is a commodity as defined in Section 1a(9) of the
CEA. 7 U.S.C. 1a(9). See In re Coinflip, Inc., No. 15-29 (CFTC Sept.
17, 2015), available at<EMAIL_ADDRESS>    \24\ The XBT Futures are cash-settled futures contracts based on
the auction price of bitcoin in U.S. dollars on the Gemini Exchange
that will expire on a weekly, monthly and quarterly basis. XBT
Futures are designed to reflect economic exposure related to the
price of bitcoin. XBT Futures began trading on December 10, 2017.
    \25\ The CME Futures are also cash-settled futures contracts
based on the CME CF Bitcoin Reference Rate, which is based on an
aggregation of trade flow from several bitcoin spot exchanges, that
will expire on a monthly and quarterly basis. CME Futures began
trading on December 17, 2017.
    \26\ CFE and CME are registered with the CFTC and seek to
provide a neutral, regulated marketplace for the trading of
derivatives contracts for commodities, such as futures, options and
certain swaps. Both the CFE and CME are both members of the
Intermarket Surveillance Group (``ISG'').
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    As such, the Exchange is proposing to list and trade the Funds
under Rule 14.11(f)(4), which governs the listing and trading of Trust
Issued Receipts on the Exchange.
GraniteShares Bitcoin ETF
    The Long Fund seeks as its investment objective results (before
fees and expenses) that, both for a single day \27\ and over time,
match the performance of lead month Benchmark Futures Contracts. By
being long Bitcoin Futures Contracts, as defined below, the Long Fund
seeks to benefit from daily increases in the price of the Bitcoin
Futures Contracts and will lose value when the price of the Bitcoin
Futures Contracts decline.
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    \27\ A ``single day'' is measured from the time a Fund
calculates its net asset value (``NAV'') to the time of the Fund's
next NAV calculation. The NAV calculation time for the Funds will
typically be 4:00 p.m. Eastern time.

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GraniteShares Short Bitcoin ETF
    The Short Fund seeks to provide investment results that, on a daily
basis correspond (before fees and expenses) to the inverse (-1x) of the
daily performance of the Benchmark Futures Contracts for a single day.
By being short Bitcoin Futures Contracts, as defined below, the Short
Fund seeks to benefit from daily decreases in the price of the Bitcoin
Futures Contracts and will lose value when the price of the Bitcoin
Futures Contracts increase.
Investment Strategies
    Each Fund will, under Normal Market Conditions,\28\ hold
substantially all of its assets in the Benchmark Futures Contracts and
cash and Cash Equivalents \29\ (which are used to collateralize the
Benchmark Futures Contracts) in order to achieve its investment
objective. Although the Funds generally intend to invest substantially
all of their respective assets in Benchmark Futures Contracts, the
Funds may invest in other U.S. exchange-listed bitcoin futures
contracts, as available, in addition to the Benchmark Futures Contracts
(collectively, with Benchmark Futures Contracts, the ``Bitcoin Futures
Contracts'').
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    \28\ The term ``Normal Market Conditions'' includes, but is not
limited to, the absence of trading halts in the applicable financial
markets generally; operational issues causing dissemination of
inaccurate market information or system failures; or force majeure
type events such as natural or man-made disaster, act of God, armed
conflict, act of terrorism, riot or labor disruption, or any similar
intervening circumstance.
    \29\ ``Cash and Cash Equivalents'' means short-term instruments
with maturities of less than three months, including: (i) U.S.
Government securities, including bills, notes, and bonds differing
as to maturity and rates of interest, which are either issued or
guaranteed by the U.S. Treasury or by U.S. Government agencies or
instrumentalities; (ii) certificates of deposit issued against funds
deposited in a bank or savings and loan association; (iii) bankers
acceptances, which are short-term credit instruments used to finance
commercial transactions; (iv) repurchase agreements and reverse
repurchase agreements; (v) bank time deposits, which are monies kept
on deposit with banks or savings and loan associations for a stated
period of time at a fixed rate of interest; (vi) commercial paper,
which are short-term unsecured promissory notes; and (vii) money
market funds.
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    Bitcoin Futures Contracts are measures of the market's expectation
of the price of bitcoin at certain points in the future, and as such
will behave differently than current or spot bitcoin prices. The Funds
are not linked to bitcoin and in many cases the Funds could
significantly underperform or outperform the price of bitcoin.
    The Funds do not intend to hold Bitcoin Futures Contracts through
expiration, but instead intend to either close or ``roll'' their
respective positions. When the market for these contracts is such that
the prices are higher in the more distant delivery months than in the
nearer delivery months, the sale during the course of the ``rolling
process'' of the more nearby contract would take place at a price that
is lower than the price of the more nearby Bitcoin Futures Contracts
would take place at a price that is lower than the price of the more
distant Bitcoin Futures Contracts. This pattern of higher futures
prices for longer expiration Bitcoin Futures Contracts is referred to
as ``contango.'' Alternatively, when the market for certain Bitcoin
Futures Contracts is such that the prices are higher in the nearer
months than in the more distant months, the sale during the course of
the ``rolling process'' of the more nearby Bitcoin Futures Contracts
would take place at a price that is higher than the price of the more
distant Bitcoin Futures Contracts. This pattern of higher future prices
for shorter expiration Bitcoin Futures Contracts is referred to as
``backwardation.'' The presence of contango in the relevant Bitcoin
Futures Contracts at the time of rolling would be expected to adversely
affect the long positions held by the Long Fund, and positively affect
the short positions held by the Short Fund. Similarly, the presence of
backwardation in Bitcoin Futures Contracts at the time of rolling such
Bitcoin Futures Contracts would be expected to adversely affect the
short positions held by the Short Fund and positively affect the long
positions held by the Long Fund.
    Each Fund's investments will be consistent with its investment
objective and will not be used to enhance leverage (although certain
derivatives and other investments may result in leverage).\30\ Each
Fund's investments will not be used to seek performance that is the
multiple or inverse multiple (i.e. 2x or -2x) of the Index. Each Fund's
use of derivative instruments will be collateralized.
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    \30\ The Funds will each include appropriate risk disclosure in
its offering documents, including leveraging risk. Leveraging risk
is the risk that certain transactions of a fund, including a fund's
use of derivatives, may give rise to leverage, causing a fund to be
more volatile than if it had not been leveraged.
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Policy Considerations
    The Exchange recognizes that certain policy concerns exist as it
relates to any series of Trust Issued Receipts that are listed on the
Exchange, but that these concerns, as well as certain other concerns
raised by this proposal specifically, are mitigated as it relates to
the Funds and their holdings for the reasons enumerated below.
    First, the Exchange believes that the policy concerns related to an
underlying reference asset and its susceptibility to manipulation are
mitigated as it relates to bitcoin because the very nature of the
bitcoin ecosystem makes manipulation of bitcoin difficult. The
geographically diverse and continuous nature of bitcoin trading makes
it difficult and prohibitively costly to manipulate the price of
bitcoin and, in many instances, that the bitcoin market is generally
less susceptible to manipulation than the equity, fixed income, and
commodity futures markets. There are a number of reasons this is the
case, including that there is not inside information about revenue,
earnings, corporate activities, or sources of supply; it is generally
not possible to disseminate false or misleading information about
bitcoin in order to manipulate; manipulation of the price on any single
venue would require manipulation of the global bitcoin price in order
to be effective; a substantial over-the-counter market provides
liquidity and shock-absorbing capacity; bitcoin's 24/7/365 nature
provides constant arbitrage opportunities across all trading venues;
and it is unlikely that any one actor could obtain a dominant market
share.
    Further, bitcoin is arguably less susceptible to manipulation than
other commodities that underlie ETPs; there may be inside information
relating to the supply of the physical commodity such as the discovery
of new sources of supply or significant disruptions at mining
facilities that supply the commodity that simply are inapplicable as it
relates to bitcoin. The Exchange believes that the fragmentation across
bitcoin exchanges, the relatively slow speed of transactions, and the
capital necessary to maintain a significant presence on each exchange
make manipulation of bitcoin prices through continuous trading activity
unlikely. Moreover, the linkage between the bitcoin markets and the
presence of arbitrageurs in those markets means that the manipulation
of the price of bitcoin price on any single venue would require
manipulation of the global bitcoin price in order to be effective.
Arbitrageurs must have funds distributed across multiple bitcoin
exchanges in order to take advantage of temporary price dislocations,
thereby making it unlikely that there will be strong concentration of
funds on any particular bitcoin exchange. As a result, the potential
for manipulation on a particular bitcoin exchange would require
overcoming the liquidity supply of such arbitrageurs who are
effectively eliminating any

cross-market pricing differences. For all of these reasons, bitcoin is
not particularly susceptible to manipulation, especially as compared to
other approved ETP reference assets.
    Second, the Exchange believes that the policy concerns related to
the susceptibility to manipulation of an underlying futures contract
is, in addition to the arguments above, further mitigated by the
Bitcoin Futures Contracts. The Funds are designed to, both for a single
day and over time, match the performance (or the inverse) of lead month
Benchmark Futures Contracts (and not the spot price of bitcoin). The
Funds will continuously roll the contracts that they hold prior to
expiration (generally at least one week before expiration) and will
never hold a contract through settlement, such holdings will never be
directly priced based on the spot bitcoin market price. This combined
with the CFE, CME, and Exchange surveillance procedures related to the
Bitcoin Futures, the Shares, and CFTC oversight,\31\ along with the
difficulty in manipulating the bitcoin market described above will
mitigate the potential policy concerns and further prevent trading in
the Shares from being susceptible to manipulation.
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    \31\ The CFTC issued a press release on December 1, 2017, noting
the self-certifications from CFE and CME and highlighting the
rigorous process that the CFTC had undertaken in its engagement with
CFE and CME prior to the self-certification for the Bitcoin Futures
Contracts. The press release focused on the ongoing surveillances
that will occur on each listing exchange, including surveillance
based on information sharing with the underlying cash bitcoin
exchanges as well as the actions that the CFTC will undertake after
the contracts are launched, including monitoring and analyzing the
size and development of the market, positions and changes in
positions over time, open interest, initial margin requirements, and
variation margin payments, stress testing positions, conduct reviews
of designated contract markets, derivatives clearing organizations,
clearing firms, and individual traders involved in trading and
clearing bitcoin futures. For more information, see http://www.cftc.gov/PressRoom/PressReleases/pr7654-17.
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Net Asset Value
    According to the Registration Statement, the net asset value
(``NAV'') of the Shares of the Funds will be calculated by dividing the
value of the net assets of the Fund (i.e., the value of its total
assets less total liabilities) by the total number of Shares
outstanding. Expenses and fees, including the management and
administration fees, are accrued daily and taken into account for
purposes of determining NAV. The NAV of each Fund is generally
determined at 4:00 p.m. Eastern Time each business day when the
Exchange is open for trading. If the Exchange or market on which the
Fund's investments are primarily traded closes early, the NAV may be
calculated prior to its normal calculation time. Creation/redemption
transaction order time cutoffs (as further described below) would also
be accelerated.
    Bitcoin Futures Contracts are generally valued at their settlement
price as determined by the relevant exchange. Cash and Cash Equivalents
will generally be valued at their market price using market quotations
or information provided by a pricing service.
    For more information regarding the valuation of Fund investments in
calculating a Fund's NAV, see the Registration Statement.
The Shares
    The Funds will issue and redeem Shares on a continuous basis at the
NAV per Share only in large blocks of a specified number of Shares or
multiples thereof (``Creation Units'') in transactions with authorized
participants who have entered into agreements with the Distributor. The
Adviser currently anticipates that a Creation Unit will consist of
10,000 Shares, though this number may change from time to time,
including prior to listing of the Shares. The exact number of Shares
that will constitute a Creation Unit will be disclosed in the
Registration Statement. Once created, Shares of the Funds may trade on
the secondary market in amounts less than a Creation Unit.
    Although the Adviser anticipates that purchases and redemptions for
Creation Units will generally be executed on an all-cash basis, the
consideration for purchase of Creation Units of the Funds may consist
of an in-kind deposit of a designated portfolio of assets (including
any portion of such assets for which cash may be substituted) (i.e.,
the ``Deposit Assets''), and the ``Cash Component'' computed as
described below. Together, the Deposit Assets and the Cash Component
constitute the ``Fund Deposit,'' which represents the minimum initial
and subsequent investment amount for a Creation Unit of the Fund. The
specific terms surrounding the creation and redemption of shares are at
the discretion of the Adviser.
    The Deposit Assets and Fund Securities (as defined below), as the
case may be, in connection with a purchase or redemption of a Creation
Unit, generally will correspond pro rata, to the extent practicable, to
the assets held by the Funds.
    The Cash Component will be an amount equal to the difference
between the NAV of the Shares (per Creation Unit) and the ``Deposit
Amount,'' which will be an amount equal to the market value of the
Deposit Assets, and serve to compensate for any differences between the
NAV per Creation Unit and the Deposit Amount. The Funds generally offer
Creation Units partially or entirely for cash. The Adviser will make
available through the National Securities Clearing Corporation
(``NSCC'') on each business day, prior to the opening of business on
the Exchange, the list of names and the required number or par value of
each Deposit Asset and the amount of the Cash Component to be included
in the current Fund Deposit (based on information as of the end of the
previous business day) for the Fund.
    The identity and number or par value of the Deposit Assets may
change pursuant to changes in the composition of a Fund's portfolio as
rebalancing and rolling adjustments and corporate action events occur
from time to time. The composition of the Deposit Assets may also
change in response to adjustments to the weighting or composition of
the holdings of the Fund.
    The Fund reserves the right to permit or require the substitution
of a ``cash in lieu'' amount to be added to the Cash Component to
replace any Deposit Asset that may not be available in sufficient
quantity for delivery or that may not be eligible for transfer through
the Depository Trust Company (``DTC'') or the clearing process through
the NSCC.\32\
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    \32\ The Adviser represents that, to the extent the Trust
permits or requires a ``cash in lieu'' amount, such transactions
will be effected in the same or equitable manner for all authorized
participants.
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    Except as noted below, all creation orders must be placed for one
or more Creation Units and must be received by the Distributor at a
time specified by the Adviser. The Fund currently intends that such
orders must be received in proper form no later than 2:00 p.m. Eastern
Time on the date such order is placed in order for creation of Creation
Units to be effected based on the NAV of Shares of each Fund as next
determined on such date after receipt of the order in proper form. The
``Settlement Date'' is generally the second business day after the
transmittal date. On days when the Exchange or the futures markets
close earlier than normal, the Funds may require orders to create or to
redeem Creation Units to be placed earlier in the day.
    Fund Deposits must be delivered through either the Continuous Net
Settlement facility of the NSCC, the Federal Reserve System (for cash
and

government securities), through DTC (for corporate securities), or
through a central depository account, such as with Euroclear or DTC,
maintained by each Fund's Custodian (a ``Central Depository Account''),
in any case at the discretion of the Adviser, by an authorized
participant. Any portion of a Fund Deposit that may not be delivered
through the NSCC, Federal Reserve System or DTC must be delivered
through a Central Depository Account.
    A standard creation transaction fee may be imposed to offset the
transfer and other transaction costs associated with the issuance of
Creation Units.
    Shares of the Funds may be redeemed only in Creation Units at their
NAV next determined after receipt of a redemption request in proper
form by the Distributor and only on a business day. The Adviser will
make available through the NSCC, prior to the opening of business on
the Exchange on each business day, the designated portfolio of assets
(including any portion of such assets for which cash may be
substituted) that will be applicable (subject to possible amendment or
correction) to redemption requests received in proper form on that day
(``Fund Securities''). The redemption proceeds for a Creation Unit
generally will consist of a specified amount of cash less a redemption
transaction fee. The Fund generally will redeem Creation Units entirely
for cash.
    A standard redemption transaction fee may be imposed to offset
transfer and other transaction costs that may be incurred by the Fund.
    Redemption requests for Creation Units of the Funds must be
submitted to the Distributor by or through an authorized participant by
a time specified by the Adviser. The Fund currently intends that such
requests must be received no later than 3:30 p.m. Eastern Time on any
business day, in order to receive that day's NAV. The authorized
participant must transmit the request for redemption in the form
required by the Funds to the Distributor in accordance with procedures
set forth in the authorized participant agreement.
    Additional information regarding the Shares and the Funds,
including investment strategies, risks, creation and redemption
procedures, fees and expenses, portfolio holdings disclosure policies,
distributions, taxes and reports to be distributed to beneficial owners
of the Shares can be found in the Registration Statement or on the
website for the Funds (www.GraniteShares.com), as applicable.
Availability of Information
    The Funds' website, which will be publicly available prior to the
public offering of Shares, will include a form of the prospectus for
each Fund that may be downloaded. The websites will include additional
quantitative information updated on a daily basis, including, for the
Fund: (1) The prior business day's reported NAV, the closing market
price or the midpoint of the bid/ask spread at the time of calculation
of such NAV (the ``Bid/Ask Price''),\33\ daily trading volume, and a
calculation of the premium and discount of the closing market price or
Bid/Ask Price against the NAV; and (2) data in chart format displaying
the frequency distribution of discounts and premiums of the daily
closing market price or Bid/Ask Price against the NAV, within
appropriate ranges, for each of the four previous calendar quarters.
Daily trading volume information will be available in the financial
section of newspapers, through subscription services such as Bloomberg,
Thomson Reuters, and International Data Corporation, which can be
accessed by authorized participants and other investors, as well as
through other electronic services, including major public websites. On
each business day, before commencement of trading in Shares during
Regular Trading Hours \34\ on the Exchange, each Fund will disclose on
its website the identities and quantities of the portfolio Bitcoin
Futures Contracts and other assets (the ``Disclosed Portfolio'') held
by the Fund that will form the basis for the Fund's calculation of NAV
at the end of the business day.\35\ The Disclosed Portfolio will
include, as applicable: Ticker symbol or other identifier, a
description of the holding, identity of the asset upon which the
derivative is based, the quantity of each security or other asset held
as measured by select metrics, maturity date, coupon rate, effective
date, market value and percentage weight of the holding in the
portfolio. The website and information will be publicly available at no
charge.
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    \33\ The Bid/Ask Price of each Fund will be determined using the
midpoint of the highest bid and the lowest offer on the Exchange as
of the time of calculation of the Fund's NAV. The records relating
to Bid/Ask Prices will be retained by the Funds and their service
providers.
    \34\ Regular Trading Hours are 9:30 a.m. to 4:00 p.m. Eastern
Time.
    \35\ Under accounting procedures to be followed by the Funds,
trades made on the prior business day (``T'') will be booked and
reflected in NAV on the current business day (``T+1''). Accordingly,
each Fund will be able to disclose at the beginning of the business
day the portfolio that will form the basis for the NAV calculation
at the end of the business day.
---------------------------------------------------------------------------

    In addition, for each Fund, an estimated value that reflects an
estimated intraday value of the Fund's portfolio (the ``Intraday
Indicative Value''), will be disseminated. Moreover, the Intraday
Indicative Value will be based upon the current value for the
components of the Disclosed Portfolio and will be updated and widely
disseminated by one or more major market data vendors at least every 15
seconds during the Exchange's Regular Trading Hours.\36\ In addition,
the quotations of certain of each Fund's holdings may not be updated
for purposes of calculating Intraday Indicative Value during U.S.
trading hours where the market on which the underlying asset is traded
settles prior to the end of the Exchange's Regular Trading Hours.
---------------------------------------------------------------------------

    \36\ Currently, it is the Exchange's understanding that several
major market data vendors display and/or make widely available
Intraday Indicative Values published via the Consolidated Tape
Association (``CTA'') or other data feeds.
---------------------------------------------------------------------------

    The dissemination of the Intraday Indicative Value, together with
the Disclosed Portfolio, will allow investors to determine the value of
the underlying portfolio of each Fund on a daily basis and provide an
estimate of that value throughout the trading day.
    Intraday price quotations on Cash Equivalents of the type held by
the Funds are available from major broker-dealer firms and from third-
parties, which may provide prices free with a time delay, or ``live''
with a paid fee. For Bitcoin Futures Contracts, such intraday
information is available directly from the applicable listing venue.
Intraday price information is also available through subscription
services, such as Bloomberg and Thomson Reuters, which can be accessed
by authorized participants and other investors. Pricing information
related to Cash Equivalents will be available through issuer websites
and publicly available quotation services such as Bloomberg, Markit and
Thomson Reuters.
    Information regarding market price and volume of the Shares will be
continually available on a real-time basis throughout the day on
brokers' computer screens and other electronic services. The previous
day's closing price and trading volume information for the Shares will
be generally available daily in the print and online financial press.
Quotation and last sale information for the Shares will be available on
the facilities of the CTA.

Initial and Continued Listing
    The Shares will be subject to BZX Rule 14.11(f)(4), which sets
forth the initial and continued listing criteria applicable to Trust
Issued Receipts that invest in Financial Instruments. The Exchange will
obtain a representation that the Trust's NAV will be calculated daily
and that these values and information about the assets of the Trust
will be made available to all market participants at the same time. The
Trust currently expects that there will be at least 20,000 Shares
outstanding at the time of commencement of trading on the Exchange.
Upon termination of the Trust, the Shares will be removed from listing.
The Trustee, Wilmington Trust Company, is a trust company having
substantial capital and surplus and the experience and facilities for
handling corporate trust business, as required under Rule
14.11(f)(2)(D)(iv)(a) and that no change will be made to the trustee
without prior notice to and approval of the Exchange.
    As required in Rule 14.11(f)(4)(D), the Exchange notes that any
registered market maker (``Market Maker'') in the Shares must file with
the Exchange in a manner prescribed by the Exchange and keep current a
list identifying all accounts for trading in an underlying commodity,
related commodity futures or options on commodity futures, or any other
related commodity derivatives, which the registered Market Maker may
have or over which it may exercise investment discretion. No registered
Market Maker shall trade in an underlying commodity, related commodity
futures or options on commodity futures, or any other related commodity
derivatives, in an account in which a registered Market Maker, directly
or indirectly, controls trading activities, or has a direct interest in
the profits or losses thereof, which has not been reported to the
Exchange as required by this Rule. In addition to the existing
obligations under Exchange rules regarding the production of books and
records (see, e.g., Rule 4.2), the registered Market Maker in Trust
Issued Receipts shall make available to the Exchange such books,
records or other information pertaining to transactions by such entity
or registered or non-registered employee affiliated with such entity
for its or their own accounts for trading the underlying physical
commodity, related commodity futures or options on commodity futures,
or any other related commodity derivatives, as may be requested by the
Exchange.
Trading Halts
    With respect to trading halts, the Exchange may consider all
relevant factors in exercising its discretion to halt or suspend
trading in the Shares. The Exchange will halt trading in the Shares
under the conditions specified in BZX Rule 11.18. Trading may be halted
because of market conditions or for reasons that, in the view of the
Exchange, make trading in the Shares inadvisable. These may include:
(1) The extent to which trading is not occurring in the bitcoin
underlying the Shares; or (2) whether other unusual conditions or
circumstances detrimental to the maintenance of a fair and orderly
market are present. Trading in the Shares also will be subject to Rule
14.11(f)(4)(C)(ii), which sets forth circumstances under which trading
in the Shares may be halted and delisting proceedings commenced.
Trading Rules
    The Exchange deems the Shares to be equity securities, thus
rendering trading in the Shares subject to the Exchange's existing
rules governing the trading of equity securities. BZX will allow
trading in the Shares from 8:00 a.m. until 5:00 p.m. Eastern Time. The
Exchange has appropriate rules to facilitate transactions in the Shares
during all trading sessions. As provided in BZX Rule 11.11(a) the
minimum price variation for quoting and entry of orders in securities
traded on the Exchange is $0.01 where the price is greater than $1.00
per share or $0.0001 where the price is less than $1.00 per share.
Surveillance
    As discussed above, the Exchange believes that its surveillance
procedures are adequate to properly monitor the trading of the Shares
on the Exchange during all trading sessions and to deter and detect
violations of Exchange rules and the applicable federal securities
laws. Additionally, the Bitcoin Futures Contracts will be subject to
the rules and surveillance programs of CFE, CME, and the CFTC.\37\
Trading of the Shares through the Exchange will be subject to the
Exchange's surveillance procedures for derivative products, including
Trust Issued Receipts. The Exchange or FINRA, on behalf of the
Exchange, will communicate as needed regarding trading in the Shares
and the underlying Bitcoin Futures Contracts via ISG from other
exchanges who are members or affiliates of the ISG or with which the
Exchange has entered into a comprehensive surveillance sharing
agreement.\38\ The Exchange may also obtain information regarding
trading in the spot bitcoin market from exchanges with which the
Exchange has entered into a comprehensive surveillance sharing
agreement. In addition, the Exchange is able to access, as needed,
trade information for certain fixed income instruments reported to
FINRA's Trade Reporting and Compliance Engine (``TRACE''). The Exchange
prohibits the distribution of material non-public information by its
employees.
---------------------------------------------------------------------------

    \37\ See supra note 33.
    \38\ For a list of the current members and affiliate members of
ISG, see www.isgportal.com. The Exchange notes that not all
components of the Disclosed Portfolio for each Fund may trade on
markets that are members of ISG or with which the Exchange has in
place a comprehensive surveillance sharing agreement. Not more than
10% of the net assets of a Fund in the aggregate invested in Bitcoin
Futures Contracts shall consist of Bitcoin Futures Contracts whose
principal market is not a member of the ISG or with which the
Exchange has in place a comprehensive surveillance sharing
agreement.
---------------------------------------------------------------------------

Information Circular
    Prior to the commencement of trading, the Exchange will inform its
members in an Information Circular of the special characteristics and
risks associated with trading the Shares. Specifically, the Information
Circular will discuss the following: (1) The procedures for purchases
and redemptions of Shares in Creation Units (and that Shares are not
individually redeemable); (2) Exchange Rule 3.7, which imposes
suitability obligations on Exchange members with respect to
recommending transactions in the Shares to customers; (3) how
information regarding the Intraday Indicative Value is disseminated;
(4) the risks involved in trading the Shares during the Pre-Opening
\39\ and After Hours Trading Sessions \40\ when an updated Intraday
Indicative Value will not be calculated or publicly disseminated; (5)
the requirement that members deliver a prospectus to investors
purchasing newly issued Shares prior to or concurrently with the
confirmation of a transaction; and (6) trading information.
---------------------------------------------------------------------------

    \39\ The Pre-Opening Session is from 8:00 a.m. to 9:30 a.m.
Eastern Time.
    \40\ The After Hours Trading Session is from 4:00 p.m. to 5:00
p.m. Eastern Time.
---------------------------------------------------------------------------

    In addition, the Information Circular will advise members, prior to
the commencement of trading, of the prospectus delivery requirements
applicable to the Fund. Members purchasing Shares from the Funds for
resale to investors will deliver a prospectus to such investors. The
Information Circular will also discuss any exemptive, no-action, and
interpretive relief granted by the

Commission from any rules under the Act.
    In addition, the Information Circular will reference that each Fund
is subject to various fees and expenses described in the Registration
Statement. The Information Circular will also disclose the trading
hours of the Shares of the Funds and the applicable NAV calculation
time for the Shares. The Information Circular will disclose that
information about the Shares of the Funds will be publicly available on
that Fund's website. In addition, the Information Circular will
reference that the Trust is subject to various fees and expenses
described in the Registration Statement.
2. Statutory Basis
    The Exchange believes that the proposal is consistent with Section
6(b) of the Act \41\ in general and Section 6(b)(5) of the Act \42\ in
particular in that it is designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade, to foster cooperation and coordination with
persons engaged in facilitating transactions in securities, to remove
impediments to and perfect the mechanism of a free and open market and
a national market system and, in general, to protect investors and the
public interest.
---------------------------------------------------------------------------

    \41\ 15 U.S.C. 78f.
    \42\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange believes that the proposed rule change is designed to
prevent fraudulent and manipulative acts and practices in that the
Exchange believes that its surveillance procedures are adequate to
properly monitor the trading of the Shares on the Exchange during all
trading sessions and to deter and detect violations of Exchange rules
and the applicable federal securities laws. The geographically diverse
and continuous nature of bitcoin trading makes it difficult and
prohibitively costly to manipulate the price of bitcoin and, in many
instances, that the bitcoin market is generally less susceptible to
manipulation than the equity, fixed income, and commodity futures
markets. There are a number of reasons this is the case, including that
there is not inside information about revenue, earnings, corporate
activities, or sources of supply; it is generally not possible to
disseminate false or misleading information about bitcoin in order to
manipulate; manipulation of the price on any single venue would require
manipulation of the global bitcoin price in order to be effective; a
substantial over-the-counter market provides liquidity and shock-
absorbing capacity; bitcoin's 24/7/365 nature provides constant
arbitrage opportunities across all trading venues; and it is unlikely
that any one actor could obtain a dominant market share.
    Further, bitcoin is arguably less susceptible to manipulation than
other commodities that underlie ETPs; there may be inside information
relating to the supply of the physical commodity such as the discovery
of new sources of supply or significant disruptions at mining
facilities that supply the commodity that simply are inapplicable as it
relates to bitcoin. The Exchange believes that the fragmentation across
bitcoin exchanges, the relatively slow speed of transactions, and the
capital necessary to maintain a significant presence on each exchange
make manipulation of bitcoin prices through continuous trading activity
unlikely. Moreover, the linkage between the bitcoin markets and the
presence of arbitrageurs in those markets means that the manipulation
of the price of bitcoin price on any single venue would require
manipulation of the global bitcoin price in order to be effective.
Arbitrageurs must have funds distributed across multiple bitcoin
exchanges in order to take advantage of temporary price dislocations,
thereby making it unlikely that there will be strong concentration of
funds on any particular bitcoin exchange. As a result, the potential
for manipulation on a particular bitcoin exchange would require
overcoming the liquidity supply of such arbitrageurs who are
effectively eliminating any cross-market pricing differences. For all
of these reasons, bitcoin is not particularly susceptible to
manipulation, especially as compared to other approved ETP reference
assets.
    The Exchange also believes that the policy concerns related to the
susceptibility to manipulation of an underlying futures contract is, in
addition to the arguments above, further mitigated by the Bitcoin
Futures Contracts. The Funds are designed to, both for a single day and
over time, match the performance (or the inverse) of lead month
Benchmark Futures Contracts (and not the spot price of bitcoin). The
Funds will continuously roll the contracts that they hold prior to
expiration (generally at least one week before expiration) and will
never hold a contract through settlement, such holdings will never be
directly priced based on the spot bitcoin market price. This combined
with the CFE, CME, and Exchange surveillance procedures related to the
Bitcoin Futures, the Shares, and CFTC oversight, along with the
difficulty in manipulating the bitcoin market described above will
mitigate the potential policy concerns and further prevent trading in
the Shares from being susceptible to manipulation.
    Trading of the Shares through the Exchange will be subject to the
Exchange's surveillance procedures for derivative products, including
Trust Issued Receipts. The Exchange or FINRA, on behalf of the
Exchange, will communicate as needed regarding trading in the Shares
and the underlying Bitcoin Futures Contracts via ISG, from other
exchanges who are members or affiliates of the ISG, or with which the
Exchange has entered into a comprehensive surveillance sharing
agreement. The Exchange may also obtain information regarding trading
in the spot bitcoin market via the ISG, from other exchanges who are
members or affiliates of the ISG, or from other exchanges with which
the Exchange has entered into a comprehensive surveillance sharing
agreement. In addition, the Exchange is able to access, as needed,
trade information for certain fixed income instruments reported to
TRACE. The Exchange prohibits the distribution of material non-public
information by its employees. The Exchange believes that its
surveillance procedures are adequate to properly monitor the trading of
the Shares on the Exchange during all trading sessions and to deter and
detect violations of Exchange rules and the applicable federal
securities laws.
    Because of its innovative features as a cryptoasset, bitcoin has
gained wide acceptance as a secure means of exchange in the commercial
marketplace and has generated significant interest among investors. In
less than a decade since its creation in 2008, bitcoin has achieved
significant market penetration, with payments giant PayPal and
thousands of merchants and businesses accepting it as a form of
commercial payment, as well as receiving official recognition from
several governments, including Japan and Australia. Accordingly,
investor interest in gaining exposure to bitcoin is increasing
exponentially as well. As expected, the total volume of bitcoin
transactions in the market continues to grow exponentially.
    Despite the growing investor interest in bitcoin, the primary means
for investors to gain access to bitcoin exposure remains either through
the Bitcoin Futures Contracts or direct investment through bitcoin
exchanges or over-the-counter trading. For regular investors simply
wishing to express an investment viewpoint in bitcoin, investment
through the Bitcoin Futures Contracts is complex and requires active

management and direct investment in bitcoin brings with it significant
inconvenience, complexity, expense and risk. The Shares would therefore
represent a significant innovation in the bitcoin market by providing
an inexpensive and simple vehicle for investors to gain long or short
exposure to bitcoin in a secure and easily accessible product that is
familiar and transparent to investors. Such an innovation would help to
perfect the mechanism of a free and open market and, in general, to
protect investors and the public interest by improving investor access
to bitcoin exposure through efficient and transparent exchange-traded
derivative products.
    In addition to improved convenience, efficiency and transparency,
the Funds will also help to prevent fraudulent and manipulative acts
and practices by enhancing the security afforded to investors as
compared to a direct investment in bitcoin. Despite the extensive
security mechanisms built into the Bitcoin network, a remaining risk to
owning bitcoin directly is the need for the holder to retain and
protect the ``private key'' required to spend or sell bitcoin after
purchase. If a holder's private key is compromised or simply lost,
their bitcoin can be rendered unavailable--i.e., effectively lost to
the investor. This risk will be eliminated by the Long Fund because the
exposure to bitcoin is gained through cash-settled Bitcoin Futures
Contracts that do not present any of the security issues that exist
with direct investment in bitcoin.
    The Funds expect that they will generally seek to remain fully
exposed to Bitcoin Futures Contracts even during times of adverse
market conditions. Under Normal Market Conditions, the Funds will
generally hold only Bitcoin Futures Contracts and cash and Cash
Equivalents (which are used to collateralize the Bitcoin Futures
Contracts).
    The proposed rule change is designed to promote just and equitable
principles of trade and to protect investors and the public interest in
that the Exchange will obtain a representation from the issuer of the
Shares that the NAV will be calculated daily and that the NAV and the
Disclosed Portfolio will be made available to all market participants
at the same time. In addition, a large amount of information is
publicly available regarding the Funds and the Shares, thereby
promoting market transparency. Moreover, the Intraday Indicative Value
will be disseminated by one or more major market data vendors at least
every 15 seconds during Regular Trading Hours. On each business day,
before commencement of trading in Shares during Regular Trading Hours,
each Fund will disclose on its website the Disclosed Portfolio that
will form the basis for the Fund's calculation of NAV at the end of the
business day. Pricing information will be available on each Fund's
website including: (1) The prior business day's reported NAV, the Bid/
Ask Price of the Fund, and a calculation of the premium and discount of
the Bid/Ask Price against the NAV; and (2) data in chart format
displaying the frequency distribution of discounts and premiums of the
daily Bid/Ask Price against the NAV, within appropriate ranges, for
each of the four previous calendar quarters. Additionally, information
regarding market price and trading of the Shares will be continually
available on a real-time basis throughout the day on brokers' computer
screens and other electronic services, and quotation and last sale
information for the Shares will be available on the facilities of the
CTA. The website for each Fund will include a form of the prospectus
for the Fund and additional data relating to NAV and other applicable
quantitative information. Trading in Shares of the Funds will be halted
under the conditions specified in BZX Rule 11.18. Trading may also be
halted because of market conditions or for reasons that, in the view of
the Exchange, make trading in the Shares inadvisable. Finally, trading
in the Shares will be subject to BZX Rule 14.11(f)(4)(B)(ii), which
sets forth circumstances under which Shares of the Funds may be halted
and delisting proceedings commenced. In addition, as noted above,
investors will have ready access to information regarding each Fund's
holdings, the Intraday Indicative Value, the Disclosed Portfolio, and
quotation and last sale information for the Shares.
    Intraday price quotations on Cash Equivalents of the type held by
the Funds are available from major broker-dealer firms and from third-
parties, which may provide prices free with a time delay, or ``live''
with a paid fee. For Bitcoin Futures Contracts, such intraday
information is available directly from the applicable listing venue.
Intraday price information is also available through subscription
services, such as Bloomberg and Thomson Reuters, which can be accessed
by authorized participants and other investors. Pricing information
related to Cash Equivalents will be available through issuer websites
and publicly available quotation services such as Bloomberg, Markit and
Thomson Reuters.
    The proposed rule change is designed to perfect the mechanism of a
free and open market and, in general, to protect investors and the
public interest in that it will facilitate the listing and trading of
additional types of actively-managed exchange-traded products that will
enhance competition among market participants, to the benefit of
investors and the marketplace. As noted above, the Exchange has in
place surveillance procedures relating to trading in the Shares and may
obtain information via ISG from other exchanges that are members of ISG
or with which the Exchange has entered into a comprehensive
surveillance sharing agreement as well as trade information for certain
fixed income instruments as reported to FINRA's TRACE. Not more than
10% of the net assets of a Fund in the aggregate invested in Bitcoin
Futures Contracts shall consist of Bitcoin Futures Contracts whose
principal market is not a member of the ISG or with which the Exchange
has in place a comprehensive surveillance sharing agreement. In
addition, as noted above, investors will have ready access to
information regarding each Fund's holdings, the Intraday Indicative
Value, the Disclosed Portfolio, and quotation and last sale information
for the Shares.
    For the above reasons, the Exchange believes that the proposed rule
change is consistent with the requirements of Section 6(b)(5) of the
Act.

(B) Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purpose of the Act. The Exchange notes that the
proposed rule change, rather will facilitate the listing and trading of
additional actively-managed exchange-traded products that will enhance
competition among both market participants and listing venues, to the
benefit of investors and the marketplace.

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

    The Exchange has neither solicited nor received written comments on
the proposed rule change.

III. Solicitation of Comments

    Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change, as modified by Amendment No. 2, 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 protected]. Please include
File Number SR-CboeBZX-2018-001 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-CboeBZX-2018-001. 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 will also 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-CboeBZX-2018-001 and should be submitted
on or before November 1, 2018.

    By the Commission.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-22096 Filed 10-10-18; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 81, Number 241 (Thursday, December 15, 2016)]
[Notices]
[Page 90904]
[FR Doc No: 2016-30140]

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DEPARTMENT OF TRANSPORTATION

Federal Railroad Administration

[Docket Number FRA-2016-0115]

Petition for Waiver of Compliance

    In accordance with part 211 of Title 49 Code of Federal Regulations
(CFR), this document provides the public notice that by a document
dated November 28, 2016, CSX Transportation (CSX) has petitioned the
Federal Railroad Administration (FRA) for a waiver of compliance from
certain provisions of the Federal railroad safety regulations contained
at 49 CFR part 236. FRA assigned the petition Docket Number FRA-2016-
0115.
    CSX seeks relief from the requirements of 49 CFR 236.566,
Locomotive of each train operating in train stop, train control or cab
signal territory; equipped. Specifically, CSX seeks relief for the
following locations and operations:
    1. Operations from Control Point (CP) 45 at Milepost (MP) OB44.5 on
the Boston Subdivision, Albany Division, near Worcester, MA, to CP 92
at MP OB92.0 on the Berkshire Subdivision, Albany Division, near
Springfield, MA, for the following operations with the condition that
an absolute block be established in advance of each movement:
    a. Engines used in switching and transfer service, with or without
cars; work trains; wreck trains; ballast cleaners to and from work;
engines and rail diesel cars moving to and from shops. All movements
must operate at restricted speed, not exceeding 15 mph.
    2. Operations from CP 92 at MP OB92.0 on the Berkshire Subdivision,
Albany Division, near Springfield, MA, to CP 187 at MP OB187.4 on the
Berkshire Subdivision, Albany Division, near Albany, NY.:
    a. Engines used in switching and transfer service, with or without
cars; Work trains; Wreck trains; Ballast Cleaners to and from work;
Engines and Rail Diesel Cars moving to and from shops. All movements
must operate at Restricted Speed, not exceeding 15 mph.
    A copy of the petition, as well as any written communications
concerning the petition, is available for review online at
www.regulations.gov and in person at the U.S. Department of
Transportation's (DOT) Docket Operations Facility, 1200 New Jersey
Avenue SE., W12-140, Washington, DC 20590. The Docket Operations
Facility is open from 9 a.m. to 5 p.m., Monday through Friday, except
Federal Holidays.
    Interested parties are invited to participate in these proceedings
by submitting written views, data, or comments. FRA does not anticipate
scheduling a public hearing in connection with these proceedings since
the facts do not appear to warrant a hearing. If any interested party
desires an opportunity for oral comment, they should notify FRA, in
writing, before the end of the comment period and specify the basis for
their request.
    All communications concerning these proceedings should identify the
appropriate docket number and may be submitted by any of the following
methods:
     Web site: http://www.regulations.gov. Follow the online
instructions for submitting comments.
     Fax:<PHONE_NUMBER>.
     Mail: Docket Operations Facility, U.S. Department of
Transportation, 1200 New Jersey Avenue SE., W12-140, Washington, DC
20590.
     Hand Delivery: 1200 New Jersey Avenue SE., Room W12-140,
Washington, DC 20590, between 9 a.m. and 5 p.m., Monday through Friday,
except Federal Holidays.
    Communications received by January 30, 2017 will be considered by
FRA before final action is taken. Comments received after that date
will be considered as far as practicable.
    Anyone is able to search the electronic form of any written
communications and comments received into any of our dockets by the
name of the individual submitting the comment (or signing the document,
if submitted on behalf of an association, business, labor union, etc.).
In accordance with 5 U.S.C. 553(c), DOT solicits comments from the
public to better inform its processes. DOT posts these comments,
without edit, including any personal information the commenter
provides, to www.regulations.gov, as described in the system of records
notice (DOT/ALL-14 FDMS), which can be reviewed at www.dot.gov/privacy.
See also https://www.regulations.gov/privacyNotice for the privacy
notice of regulations.gov.

    Issued in Washington, DC.
Robert C. Lauby,
Associate Administrator for Railroad Safety, Chief Safety Officer.
[FR Doc. 2016-30140 Filed 12-14-16; 8:45 am]
 BILLING CODE 4910-06-P