[Federal Register Volume 80, Number 126 (Wednesday, July 1, 2015)]
[Notices]
[Pages 37695-37698]
[FR Doc No: 2015-16089]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75301; File No. SR-NYSEMKT-2015-44]

Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed Rule Change Amending the Members'
Schedule as Defined in the Amended and Restated Limited Liability
Company Agreement of NYSE Amex Options LLC Dated as of May 14, 2014 in
Order to Reflect Changes to the Capital Structure of the Company

June 25, 2015.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that on June 17, 2015, NYSE MKT LLC (the ``Exchange'' or ``NYSE
MKT'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C.78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 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 proposes to amend the Members' Schedule (as defined in
the Amended and Restated Limited Liability Company Agreement of NYSE
Amex Options LLC (the ``Company'') dated as of May 14, 2014 (the ``LLC
Agreement'')) in order to reflect changes to the capital structure of
the Company based on two transactions (such amendment, the ``Proposed
Rule Change''). The first transaction involved the issuance of Annual
Incentive Shares (as defined in the Members Agreement (as defined
below)) to the Founding Firms (as defined below) consistent with the
formula set forth in Section 2.1 of that certain Amended and Restated
Members Agreement, dated as of May 14, 2014, by and among the Company,
NYSE MKT, NYSE Holdings LLC (formerly known as NYSE Euronext) (``NYSE
Holdings''), NYSE Market (DE), Inc. (formerly known as NYSE Market,
Inc.) (``NYSE Market (DE)''), Banc of America Strategic Investments
Corporation (``BAML''), Barclays Electronic Commerce Holdings Inc.
(``Barclays''), Citadel Securities LLC (``Citadel''), Citigroup
Financial Strategies, Inc. (``Citigroup''), Goldman,

Sachs & Co. (``Goldman Sachs''), Datek Online Management Corp. (``TD
Ameritrade'') and UBS Americas Inc. (``UBS'') (collectively, excluding
the Company, NYSE MKT, NYSE Holdings and NYSE Market (DE), the
``Founding Firms'') (the ``Members Agreement''). The second transaction
will involve the transfer of Interests (as defined in the LLC
Agreement) by the Founding Firms to NYSE Market (DE), an affiliate of
the Exchange, as soon as reasonably practicable following June 15, 2015
pursuant to Article XI of the LLC Agreement and Section 3.1 of the
Members Agreement. The text of the proposed rule change is available on
the Exchange's Web site at www.nyse.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 self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.

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

1. Purpose
    The Exchange proposes to amend the Members' Schedule as set forth
herein. The amendment reflects changes to the capital structure of the
Company due to (i) the issuance of Annual Incentive Shares to the
Founding Firms pursuant to Section 2.1 of the Members Agreement and
(ii) the transfer of Interests by the Founding Firms to NYSE Market
(DE) pursuant to Article XI of the LLC Agreement and Section 3.1 of the
Members Agreement.
Issuance of Annual Incentive Shares
    Pursuant to Section 2.1 of the Members Agreement, each year until
this year (unless extended by the board of directors of the Company),
the Company must issue a number of Class B Common Interests (as defined
in the LLC Agreement) equal to thirty percent (30%) of the then-
outstanding Class B Common Interests as Annual Incentive Shares. These
Annual Incentive Shares are allocated among the Members (as defined in
the LLC Agreement) holding Class B Common Interests (such Members, the
``Class B Members'') based on each Class B Member's contribution to the
volume of the Exchange relative to such Class B Member's Individual
Target (as defined in the Members Agreement). The Annual Incentive
Shares may change the relative economic and voting rights among the
Class B Members but have no effect on the relative economic and voting
rights as between Members holding Class A Common Interests (as defined
in the LLC Agreement) and Class B Members.
    Effective February 28, 2015, the Company issued 10.5456 Annual
Incentive Shares in the aggregate to the Founding Firms (the ``Issuance
of Annual Incentive Shares''). Five of the Founding Firms did not
achieve their Individual Targets, which reduced the five Founding
Firms' economic and voting interests in the Company relative to the
other Founding Firms. In addition, because only two Founding Firms
exceeded their Individual Targets, 1.0309 unallocated Reallocation
Shares (as defined in the Members Agreement) were included in an
Unearned Class B Shares Pool (as defined in the Members Agreement). In
accordance with Section 2.2 of the Members Agreement, the board of
directors of the Company allocated such Class B Shares between those
two Founding Firms that exceeded their Individual Targets, effective
February 28, 2015. The Exchange proposes to amend the Members' Schedule
as set forth in Exhibit 5A attached hereto \4\ (marked against the
Members' Schedule in effect prior to such issuance) to reflect the
issuance of Annual Incentive Shares, including the allocation of the
Reallocation Shares included in the Unearned Class B Shares Pool.
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    \4\ The Commission notes that Exhibit 5A is attached to the
filing, not to this Notice.
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Founding Firm Transfer
    Pursuant to Article XI of the LLC Agreement and Section 3.1 of the
Members Agreement, a Member may transfer Interests to a third party or
to another Member in accordance with the conditions and limitations set
forth therein. The Exchange is filing this Proposed Rule Change, in
part, to provide notice that the Founding Firms collectively intend to
transfer an aggregate equity interest [sic] 16.0000% in the Company to
NYSE Market (DE), an affiliate of the Exchange (the ``Founding Firm
Transfer''). Upon consummation of the Founding Firm Transfer and the
acquisition by NYSE Market (DE) of the Class B Common Interests
transferred by the Founding Firms, such Class B Common Interests will
automatically convert into an appropriate number of Class A Common
Interests.
    Immediately following the Founding Firm Transfer, NYSE MKT will own
an equity interest of 47.2000% in the Company, NYSE Market (DE) will
own an equity interest of 52.8000%, and the Founding Firms,
collectively, will no longer have an equity interest in the Company.
The Exchange proposes, upon consummation of the Founding Firm Transfer,
to amend the Members' Schedule as set forth in Exhibit 5B attached
hereto \5\ (marked against the Members' Schedule following the Issuance
of Annual Incentive Shares) to reflect the Founding Firm Transfer.
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    \5\ The Commission notes that Exhibit 5B is attached to the
filing, not to this Notice.
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2. Statutory Basis
    The Proposed Rule Change is consistent with Section 6(b) \6\ of the
Act,\7\ in general, and furthers the objectives of Section 6(b)(1) \8\
of the Act, which requires a national securities exchange to be so
organized and have the capacity to carry out the purposes of the Act
and to comply, and to enforce compliance by its members and persons
associated with its members, with the provisions of the Act, the rules
and regulations promulgated thereunder and the rules of the Exchange.
The Proposed Rule Change does not modify the Company's trading or
compliance rules and preserves the existing mechanisms for ensuring the
Exchange's and the Company's compliance with the Act, the rules and
regulations promulgated thereunder and the rules of the Exchange. The
Proposed Rule Change also retains NYSE MKT's regulatory control over
the Company and the provisions specifically designed to ensure the
independence of its self-regulatory function and to ensure that any
regulatory determinations by NYSE MKT, as the Company's SRO, are
controlling with respect to the actions and decisions of the Company.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78.
    \8\ 15 U.S.C. 78f(b)(1).
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    Additionally, the Proposed Rule Change continues to require the
Company, its Members and its directors to comply with the federal
securities laws and the rules and regulations promulgated thereunder
and to engage in conduct that fosters and does not interfere with the
Exchange's or the Company's ability to carry out its

respective responsibilities under the Act.
    The Proposed Rule Change is also consistent with, and furthers the
objectives of, Section 6(b)(5) \9\ of the Act, in that it preserves all
of NYSE MKT's existing rules and mechanisms 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 mechanisms of a free and open market and
a national market system and, in general, to protect investors and the
public interest.
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    \9\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the Proposed Rule Change will
have any impact on competition. The Proposed Rule Change solely relates
to changes in the equity interests among the Members of the Company
pursuant to provisions of the LLC Agreement and Members Agreement that
have been previously filed and approved by the Commission. In addition,
neither the Issuance of Annual Incentive Shares nor the Founding Firm
Transfer implicates the Commission's policies with respect to
permissible ownership. Furthermore, because the Proposed Rule Change
does not affect the availability or pricing of any goods or services,
the Proposed Rule Change will not affect competition either between the
Exchange and others that provide the same goods and services as the
Exchange or among market participants.

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

    No written comments were solicited or received with respect to the
Proposed Rule Change.

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

    The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \10\ and Rule 19b-4(f)(6) thereunder.\11\
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 prior to
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 and Rule 19b-
4(f)(6)(iii) thereunder.
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    \10\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \11\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires the Exchange to give the Commission written notice of the
Exchange's intent to file the proposed rule change, along with a
brief description and 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. The
Exchange has satisfied this requirement.
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    A proposed rule change filed under Rule 19b-4(f)(6) \12\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\13\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposal
may become operative immediately upon filing. The Exchange stated that
an immediate operative date is necessary to permit the efficient
consummation of both the Issuance of Annual Incentive Shares and the
Founding Firm Transfer. According to the Exchange, accomplishing the
Founding Firm Transfer requires that the Members have certainty as to
the amount of Common Interests owned by each, which in turn requires
timely consummation of the Issuance of Annual Incentive Shares. The
Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest
because such waiver would allow the Company to consummate the Issuance
of Annual Incentive Shares and the Founding Firm Transfer in an
efficient and predictable manner. Accordingly, the Commission hereby
grants the Exchange's request and designates the proposal operative
upon filing.\14\
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    \12\ 17 CFR 240.19b-4(f)(6).
    \13\ 17 CFR 240.19b-4(f)(6)(iii).
    \14\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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    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. If the Commission
takes such action, the Commission shall institute proceedings under
Section 19(b)(2)(B) \15\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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    \15\ 15 U.S.C. 78s(b)(2)(B).
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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-NYSEMKT-2015-44 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NYSEMKT-2015-44. 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 such 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 publicly available. All
submissions should refer to File Number SR-NYSEMKT-2015-44 and should
be submitted on or before July 22, 2015.
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    \16\ 17 CFR 200.30-3(a)(12).

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    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-16089 Filed 6-30-15; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 80, Number 36 (Tuesday, February 24, 2015)]
[Notices]
[Pages 9788-9792]
[FR Doc No: 2015-03666]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74297; File No. SR-BATS-2014-056]

Self-Regulatory Organizations; BATS Exchange, Inc.; Order
Granting Approval of a Proposed Rule Change, as Modified by Amendment
No. 1 Thereto, To List and Trade Shares of the iShares U.S. Fixed
Income Balanced Risk ETF of the iShares U.S. ETF Trust Under Rule
14.11(i)

February 18, 2015.

I. Introduction

    On December 19, 2014, BATS Exchange, Inc. (``BATS'' or the
``Exchange'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'' or ``Exchange Act'') \1\ and Rule 19b-4
thereunder,\2\ a proposed rule change to list and trade the shares
(``Shares'') of the iShares U.S. Fixed Income Balanced Risk ETF
(``Fund'') under BATS Rule 14.11(i). The proposed rule change was
published for comment in the Federal Register on January 6, 2015.\3\ On
February 12, 2015, BATS filed Amendment No. 1 to the proposal.\4\ The
Commission received no comments on the proposal. This order grants
approval of the proposed rule change, as modified by Amendment No. 1
thereto.
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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. 73965 (December 30,
2014), 80 FR 585 (``Notice'').
    \4\ In Amendment No. 1, the Exchange amended the proposed rule
change to note that all of the exchange listed investment company
securities and futures in which the Fund will invest will trade on
markets that are a member of the Intermarket Surveillance Group
(``ISG'') or with which the Exchange has in a place a comprehensive
surveillance sharing agreement. Amendment No. 1 provided
clarification to the proposed rule change, and because it does not
materially affect the substance of the proposed rule change or raise
novel or unique regulatory issues, Amendment No. 1 is not subject to
notice and comment.
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II. Description of the Proposed Rule Change

A. The Exchange's Proposal

    The Exchange proposes to list and trade Shares of the Fund under
BATS Rule 14.11(i), which governs the listing and trading of Managed
Fund Shares on the Exchange. The Shares will be offered by the iShares
U.S. ETF Trust (``Trust''), a Delaware statutory trust, which is
registered with the Commission as an open-end investment company.\5\
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    \5\ See Registration Statement on Form N-1A for the Trust, dated
April 21, 2014 (File Nos. 333-179904 and 811-22649) (``Registration
Statement''). In addition, the Exchange states that the Trust has
obtained certain exemptive relief under the Investment Company Act
of 1940 (``1940 Act''). See Investment Company Act Release No. 29571
(January 24, 2011) (File No. 812-13601) (``Exemptive Order'').
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    BlackRock Fund Advisors will be the investment adviser (``BFA'' or
``Adviser'') to the Fund.\6\ The Exchange represents that the (i)
Adviser is not a registered broker-dealer, but is affiliated with
multiple broker-dealers and has implemented fire walls with respect to
such broker dealer affiliates regarding access to information
concerning the composition of or changes to the Fund's portfolio, and
(ii) Adviser personnel who make decisions regarding the Fund's
portfolio are subject to procedures designed to prevent the use and
dissemination of material nonpublic information regarding the Fund's
portfolio.\7\ BlackRock Investments, LLC serves as the distributor of
the Fund's Shares, and State Street Bank and Trust Company is the
administrator, custodian, and transfer agent for the Trust.
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    \6\ BlackRock Fund Advisors is an indirect wholly owned
subsidiary of BlackRock, Inc.
    \7\ BATS Rule 14.11(i)(7) provides that, if the investment
adviser to the investment company issuing Managed Fund Shares is
affiliated with a broker-dealer, the investment adviser shall erect
a firewall between the investment adviser and the broker-dealer with
respect to access to information concerning the composition of or
changes to the investment company portfolio. In addition, Rule
14.11(i)(7) further requires that personnel who make decisions on
the investment company's portfolio composition must be subject to
procedures designed to prevent the misuse and dissemination of
material nonpublic information regarding the applicable investment
company portfolio. The Exchange states that, in the event that (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, such adviser or sub-adviser will implement a firewall
with respect to its relevant personnel or such broker-dealer
affiliate, as applicable, regarding access to information concerning
the composition of or changes to the portfolio, and will be subject
to procedures designed to prevent the use and dissemination of
material non-public information regarding the portfolio.
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B. The Exchange's Description of the Fund

    The Exchange has made the following additional representations and
statements in describing the Fund and its investment strategy,
including portfolio holdings and investment restrictions.\8\
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    \8\ The Commission notes that additional information regarding
the Fund, the Trust, and the Shares, including investment
strategies, risks, creation and redemption procedures, fees,
portfolio holdings disclosure policies, distributions, and taxes,
among other things, can be found in the Notice and the Registration
Statement, as applicable. See Notice, supra note 3, and Registration
Statement, supra note 5, respectively.

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Principal Investments
    According to the Exchange, the Fund will seek total return and
preservation of capital. The Fund is an actively-managed fund that does
not seek to replicate the performance of a specified index. The Fund
intends to achieve its investment objective by investing, under normal
circumstances,\9\ at least 80% of its net assets in a portfolio of U.S.
dollar-denominated investment-grade and high-yield fixed-income
securities (``Fixed Income Securities''), futures, and swaps, as
described below. The Fund seeks to provide exposure to a portfolio of
Fixed Income Securities where the expected contribution of interest
rate risk and credit spread risk are approximately equal.
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    \9\ The term ``under normal circumstances'' includes, but is not
limited to, the absence of adverse market, economic, political, or
other conditions, including extreme volatility or trading halts in
the fixed income markets or the financial markets generally;
operational issues causing dissemination of inaccurate market
information; or force majeure type events such as systems failure,
natural or man-made disaster, act of God, armed conflict, act of
terrorism, riot, or labor disruption, or any similar intervening
circumstance.
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    The Fund may invest, without limitation, in high-yield securities
rated CCC or higher by Moody's Investors Service, Inc. or equivalently
rated by Standard & Poor's Financial Services LLC and/or Fitch, or, if
unrated, determined by the Adviser to be of equivalent quality.\10\
Under normal circumstances, the Fund will invest primarily in fixed-
rate Fixed Income Securities of varying maturities.
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    \10\ According to the Exchange, the Adviser may determine that
unrated Fixed Income Securities are of ``equivalent quality'' based
on such credit quality factors that it deems appropriate, which may
include among other things, performing an analysis similar, to the
extent possible, to that performed by a nationally recognized
statistical ratings organization when rating similar securities and
issuers. In making such a determination, the Adviser may consider
internal analyses and risk ratings, third party research and
analysis, and other sources of information, as deemed appropriate by
the Adviser.
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    Fixed Income Securities in which the Fund may invest will include
only the following instruments: \11\ fixed and floating rate debt
securities, such as corporate bonds \12\ and government bonds; agency
securities; \13\ instruments of non-U.S. issuers; \14\ privately-issued
securities; \15\ municipal bonds; money market securities; \16\ and
exchange traded and non-exchange traded investment companies (including
investment companies advised by the Adviser or its affiliates) that
invest in such Fixed Income Securities.\17\
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    \11\ The Exchange represents that the Fund's portfolio will meet
the following requirements of Rule 14.11(c)(4)(B)(i), which governs
the listing and trading of fixed income based Index Fund Shares: (1)
Components that in the aggregate account for at least 75% of the
weight of the index or portfolio must have a minimum original
principal amount outstanding of $100 million or more (Rule
14.11(c)(4)(B)(i)(b)); (2) a component may be a convertible
security, however, once the convertible security component converts
to an underlying equity security, the component is removed from the
index or portfolio (Rule 14.11(c)(4)(B)(i)(c)); and (3) no component
fixed-income security (excluding Treasury Securities) will represent
more than 30% of the weight of the portfolio, and the five highest
weighted component fixed-income securities do not in the aggregate
account for more than 65% of the weight of the portfolio (Rule
14.11(c)(4)(B)(i)(d)). For the purposes of this footnote, the term
``fixed income securities'' includes all holdings of the Fund.
    \12\ While the Fund is permitted to invest without restriction
in corporate bonds, the Exchange states that, under normal
circumstances, the Fund will generally invest in corporate bond
issuances that have at least $250 million par amount outstanding.
    \13\ The Exchange states that ``agency securities'' for this
purpose generally includes securities issued by the following
entities: Government National Mortgage Association (Ginnie Mae),
Federal National Mortgage Association (Fannie Mae), Federal Home
Loan Banks (FHLBanks), Federal Home Loan Mortgage Corporation
(Freddie Mac), Farm Credit System (FCS) Farm Credit Banks (FCBanks),
Student Loan Marketing Association (Sallie Mae), Resolution Funding
Corporation (REFCORP), Financing Corporation (FICO), and the Farm
Credit System (FCS) Financial Assistance Corporation (FAC). Agency
securities may include, but are not limited to, mortgage-backed
securities.
    \14\ The Exchange states that ``instruments of non-U.S.
issuers'' means U.S. dollar-denominated fixed income securities
issued by non-U.S. corporate or sovereign entities.
    \15\ The Exchange states that ``privately-issued securities''
generally includes Rule 144A securities and, in this context, may
include both mortgage-backed and non-mortgage 144A securities. The
Exchange represents that, to the extent that the Fund's holding of
privately-issued securities include non-agency mortgage-backed
securities or illiquid assets, such holdings will be subject to the
limitations established in the ``Other Investments'' and
``Investment Restrictions'' sections set forth below, as applicable.
    \16\ The Exchange represents that, under normal circumstances,
the Fund intends to invest in money market securities in a manner
consistent with its investment objective in order to help manage
cash flows in and out of the Fund, such as in connection with
payment of dividends or expenses, and to satisfy margin
requirements, to provide collateral or to otherwise back investments
in derivative instruments. For these purposes, money market
securities include: Short-term, high-quality obligations issued or
guaranteed by the U.S. Treasury or the agencies or instrumentalities
of the U.S. government; short-term, high-quality securities issued
or guaranteed by non-U.S. governments, agencies and
instrumentalities; repurchase agreements; money market mutual funds;
commercial paper; and deposits and other obligations of U.S. and
non-U.S. banks and financial institutions. All money market
securities acquired by the Fund will be rated investment grade. The
Fund does not intend to invest in any unrated money market
securities. However, it may do so, to a limited extent, such as
where a rated money market security becomes unrated, if such money
market security is determined by the Adviser to be of comparable
quality. See supra note 10.
    \17\ The Exchange states that the Fund currently anticipates
investing in only registered open-end investment companies,
including mutual funds and the open-end investment company funds
described in BATS Rule 14.11, but notes that the Exemptive Order
allows the Fund to invest in ``shares of other ETFs, shares of money
market mutual funds, or other investment companies.''
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    The Adviser will utilize a model-based proprietary investment
process to assemble an investment portfolio comprised of (i) long
positions in U.S. dollar denominated investment-grade corporate bonds
selected by BFA based on certain criteria determined by BFA to be
indicators of creditworthiness; (ii) long positions in U.S. dollar-
denominated high-yield corporate bonds selected by BFA based on certain
criteria determined by BFA to be indicators of creditworthiness; (iii)
long positions in U.S. dollar-denominated agency mortgage backed
securities; (iv) long positions in U.S. dollar denominated agency
mortgage to-be-announced transactions; (v) long positions in U.S.
Treasury securities; (vi) short positions in U.S. Treasury futures; and
(vii) short positions in U.S. Treasury securities through transactions
in interest rate swaps. The Fund seeks to invest in a portfolio of
Fixed Income Securities that in the aggregate has approximately equal
exposure to credit spread risk and interest rate risk, which is
measured by the Adviser as the volatility of returns of a security
associated with changes in the security's credit spread or changes in
interest rates.
    The Fund will adjust the allocation among its underlying securities
in an effort to achieve a target credit spread risk and interest rate
risk for the Fund's portfolio. When necessary to balance the Fund's
exposure to interest rate risk against its exposure to credit spread
risk, the Fund may take short or long positions in U.S. Treasury
futures and, through transactions in interest rate swaps, take short
positions in U.S. Treasury securities. The Adviser will determine the
aggregate credit spread risk and interest rate risk of the Fund's
portfolio. The Fund may also invest in other interest rate futures
contracts, including but not limited to, Eurodollar and Federal Funds
futures.\18\
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    \18\ The Exchange represents that derivatives held as part of
the Fund's principal investment strategy will be exchange traded
and/or centrally cleared, and they will be collateralized.
---------------------------------------------------------------------------

    In selecting corporate securities for the Fund, the Adviser may
employ a credit screening process centered on research and analysis of
issuer credit quality to reduce exposure to credit issuers that have
potential for experiencing credit deterioration. The remaining credit
portfolio is then constructed to match the key target risk
characteristics which BFA determines to be relevant in prevailing
market conditions.

    To adjust the exposure to interest rate risks, the Adviser may
employ short positions primarily in U.S. Treasury futures and interest
rate swaps. By taking these short positions, the Adviser seeks to
mitigate, but not eliminate, the impact of Treasury interest rates on
the performance of the underlying bonds. The short positions are not
intended to mitigate other factors influencing the price of bonds.
    In the absence of normal circumstances, the Fund may temporarily
depart from its normal investment process, provided that such departure
is, in the opinion of the Adviser, consistent with the Fund's
investment objective and in the best interests of the Fund. For
example, the Fund may hold a higher than normal proportion of its
assets in cash in response to adverse market, economic, or political
conditions.
Other Investments
    In addition to the derivatives holdings described above as part of
the Fund's principal investment strategy, the Fund may also, to a
limited extent (under normal circumstances, less than 20% of the Fund's
net assets), engage in transactions in the following instruments in
order to serve additional investment objectives of the Fund: \19\
treasury futures, interest rate swaps, credit default swaps, asset-
backed Fixed Income Securities,\20\ non-agency mortgage-backed fixed-
income securities,\21\ and structured securities.\22\
---------------------------------------------------------------------------

    \19\ In addition to the uses described above, the Exchange
states that derivatives might be included in the Fund's investments
to serve additional investment objectives of the Fund, which uses
are limited to the following: Using a combination of treasury
futures, interest rate swaps, and credit default swaps to equitize
coupon income and cash holdings. The Exchange represents that the
derivatives in which the Fund will invest will be exchange traded
and/or centrally cleared, and they will be collateralized.
    \20\ The Exchange states that asset-backed securities are fixed-
income securities that are backed by a pool of assets, usually loans
such as installment sale contracts or credit card receivables.
    \21\ The Exchange states that mortgage-backed securities are
asset-backed securities based on a particular type of asset, a
mortgage. The Exchange states that there are a wide variety of
mortgage-backed securities involving commercial or residential,
fixed-rate or adjustable rate mortgages, and mortgages issued by
banks or government agencies.
    \22\ The Exchange states that ``structured securities''
generally include privately-issued and publicly-issued structured
securities, including certain publicly-issued structured securities
that are not agency securities, excluding agency mortgage backed
securities. Examples include, but are not limited to: Asset-backed
securities backed by assets such as consumer receivables, credit
cards, student loans, and equipment leases; asset-backed commercial
paper; credit linked notes; and secured funding notes. Structured
securities do not include agency mortgage-backed securities.
---------------------------------------------------------------------------

Investment Restrictions
    The Fund may hold up to an aggregate amount of 15% of its net
assets in illiquid assets (calculated at the time of investment),
including Rule 144A securities deemed illiquid by the Adviser \23\
under the 1940 Act. The Fund will monitor its portfolio liquidity on an
ongoing basis to determine whether, in light of current circumstances,
an adequate level of liquidity is being maintained, and will consider
taking appropriate steps in order to maintain adequate liquidity if,
through a change in values, net assets, or other circumstances, more
than 15% of the Fund's net assets are held in illiquid assets. Illiquid
assets include securities subject to contractual or other restrictions
on resale and other instruments that lack readily available markets as
determined in accordance with Commission staff guidance.
---------------------------------------------------------------------------

    \23\ In reaching liquidity decisions, the Adviser may consider
factors including: The frequency of trades and quotes for the
security; the number of dealers wishing to purchase or sell the
security and the number of other potential purchasers; dealer
undertakings to make a market in the security; the nature of the
security and the nature of the marketplace in which it trades (e.g.,
the time needed to dispose of the security, the method of soliciting
offers, and the mechanics of transfer); any legal or contractual
restrictions on the ability to transfer the security or asset;
significant developments involving the issuer or counterparty
specifically (e.g., default, bankruptcy, etc.) or the securities
markets generally; and settlement practices, registration
procedures, limitations on currency conversion or repatriation, and
transfer limitations (for foreign securities or other assets).
---------------------------------------------------------------------------

    The Fund's investments will be consistent with the Fund's
investment objective and will not be used to achieve leveraged or
inverse leveraged returns (i.e. two times or three times the Fund's
benchmark).
    The Fund is a non-diversified fund and therefore may invest a
greater portion of its assets in the securities of one or more issuers
than a diversified fund. The Fund, however, will not purchase the
securities of issuers conducting their principal business activity in
the same industry if, immediately after the purchase and as a result
thereof, the value of the Fund's investments in that industry would
equal or exceed 25% of the current value of the Fund's total assets,
provided that this restriction does not limit the Fund's: (i)
Investments in securities of other investment companies, (ii)
investments in securities issued or guaranteed by the U.S. government,
its agencies, or instrumentalities, or (iii) investments in repurchase
agreements collateralized by U.S. government securities.

III. Discussion and Commission Findings

    After careful review, the Commission finds that the proposed rule
change, as modified by Amendment No. 1 thereto, is consistent with the
requirements of Section 6 of the Act \24\ and the rules and regulations
thereunder applicable to a national securities exchange.\25\ In
particular, the Commission finds that the proposed rule change is
consistent with the requirements of Section 6(b)(5) of the Act,\26\
which requires, among other things, that the Exchange's rules be
designed to prevent fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in facilitating transactions in
securities, to remove impediments to and perfect the mechanism of a
free and open market and a national market system, and, in general, to
protect investors and the public interest. The Commission also finds
that the proposal to list and trade the Shares on the Exchange is
consistent with Section 11A(a)(1)(C)(iii) of the Act,\27\ which sets
forth Congress' finding that it is in the public interest and
appropriate for the protection of investors and the maintenance of fair
and orderly markets to assure the availability to brokers, dealers, and
investors of information with respect to quotations for, and
transactions in, securities. The Commission notes that the Fund and the
Shares must comply with the requirements of BATS Rule 14.11(i) to be
listed and traded on the Exchange.
---------------------------------------------------------------------------

    \24\ 15 U.S.C. 78(f).
    \25\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
    \26\ 15 U.S.C. 78f(b)(5).
    \27\ 15 U.S.C. 78k-1(a)(1)(C)(iii).
---------------------------------------------------------------------------

    According to the Exchange, quotation and last-sale information for
the Shares will be available on the facilities of the Consolidated Tape
Association (``CTA''), and the previous day's closing price and trading
volume information for the Shares will be published daily in the
financial section of newspapers.\28\ Additionally, information
regarding market price and trading volume of the Shares will be
continually available on a real-time basis throughout the day on
brokers' computer screens and other electronic services.\29\ Daily
trading volume information for the Fund will also 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 Web sites.\30\ The Exchange
states that intraday, executable price quotations for the underlying
Fixed Income Securities and non-exchange traded derivatives, including
non-exchange listed investment companies, are available from major
broker-dealer firms and, for the underlying exchange-traded assets,
including investment companies and futures, such intraday information
is available directly from the applicable listing exchange.\31\
Further, the Exchange states that intraday price information for all
such instruments is available through subscription services, such as
Bloomberg, Thomson Reuters and International Data Corporation, which
can be accessed by authorized participants and other investors.\32\
---------------------------------------------------------------------------

    \28\ See Notice, supra, note 3, 80 FR at 590.
    \29\ See id.
    \30\ See id.
    \31\ See id.
    \32\ See id.
---------------------------------------------------------------------------

    In addition, the Intraday Indicative Value of the Fund,\33\ as
defined in BATS Rule 14.11(i)(3)(C), that reflects an estimated
intraday value of the Fund's portfolio, 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.\34\ On each
business day, before commencement of trading in Shares during Regular
Trading Hours \35\ on the Exchange, the Fund will disclose on its Web
site the identities and quantities of the portfolio of securities and
other assets held by the Fund that will form the basis for the Fund's
calculation of NAV at the end of the business day (``Disclosed
Portfolio'').\36\ The Net Asset Value (``NAV'') of the Fund's Shares
will generally be calculated once daily as of the close of regular
trading on the Exchange, generally 4:00 p.m. Eastern Time on each day
that the Exchange is open for trading.\37\ The Adviser will make
available through the National Securities Clearing Corporation 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 security, as
well as the amount of the cash, comprising the creation basket of the
Fund for that day.\38\ The Web site for the Fund will include a form of
the prospectus for the Fund and additional data relating to NAV and
other applicable quantitative information.\39\
---------------------------------------------------------------------------

    \33\ According to the Exchange, the Intraday Indicative Value
will be based upon the current value for the components of the
Disclosed Portfolio. The quotations of certain of the Fund's
holdings may not be updated during U.S. trading hours if such
holdings do not trade in the United States or if updated prices
cannot be ascertained. See id.
    \34\ See id. 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 CTA or other
data feeds. See id.
    \35\ Regular Trading Hours are 9:30 a.m. to 4:00 p.m. Eastern
Time.
    \36\ On a daily basis, the Disclosed Portfolio displayed on the
Fund's Web site will include the following information regarding
each portfolio holding, as applicable to the type of holding: Ticker
symbol, if any; CUSIP number or other identifier, if any; a
description of the holding (including the type of holding, such as
the type of swap); the identity of the security or other asset or
instrument underlying the holding, if any; quantity held (as
measured by, for example, par value, notional value or number of
shares, contracts, or units); maturity date, if any; coupon rate, if
any; market value of the holding; and the percentage weighting of
the holding in the Fund's portfolio. The Web site information will
be publicly available at no charge. See id.
    \37\ See id. at 588. The NAV per Share is calculated by dividing
the Fund's net assets by the number of Fund Shares outstanding.
According to the Exchange, for purposes of calculating NAV, the Fund
values non-exchange traded Fixed Income Securities using prices
provided directly from one or more broker-dealers, market makers,
independent third-party pricing services which may use matrix
pricing and valuation models to derive values, or, for investment
companies, NAV. Exchange traded instruments, including exchange
traded Fixed Income Securities and futures, will be valued at market
closing price or, if no sale has occurred, at the last quoted bid
price on the primary exchange on which they are traded. Price
information for exchange traded instruments, including exchange
traded derivatives, will be taken from the exchange where the
security is primarily traded. Over-the-counter derivatives are
valued based upon quotations from market makers or by a pricing
service in accordance with valuation procedures approved by the
Fund's board of directors. Certain short-term debt securities will
be valued on the basis of amortized cost. Generally, trading in
certain Fixed Income Securities and derivatives is substantially
completed each day at various times prior to the close of business
on the Exchange, and the values of such securities and derivatives
used in computing the NAV of the Fund are determined at such times.
When market quotations are not readily available or are believed by
the Adviser to be unreliable, the Fund's investments are valued at
fair value by the Adviser in accordance with policies and procedures
approved by the Fund's board of directors and in accordance with the
1940 Act. Id.
    \38\ See id. at 589.
    \39\ See id. at 592.
---------------------------------------------------------------------------

    The Commission further believes that the proposal to list and trade
the Shares is reasonably designed to promote fair disclosure of
information that may be necessary to price the Shares appropriately and
to prevent trading when a reasonable degree of transparency cannot be
assured. The 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.\40\ Further, trading in the Shares will
be subject to BATS Rules 11.18 and 14.11(i)(4)(B)(iv), which set forth
circumstances under which trading in Shares of the Fund may be
halted.\41\ Trading may be halted because of market conditions or for
reasons that, in the view of the Exchange, make trading in the Shares
inadvisable. These may include: (1) The extent to which trading is not
occurring in the securities and/or the financial instruments composing
the Disclosed Portfolio of the Fund; or (2) whether other unusual
conditions or circumstances detrimental to the maintenance of a fair
and orderly market are present.\42\ Further, the Commission notes that
the Reporting Authority that provides the Disclosed Portfolio must
implement and maintain, or be subject to, procedures designed to
prevent the use and dissemination of material, non-public information
regarding the actual components of the portfolio.\43\ The Exchange
represents that it prohibits the distribution of material, non-public
information by its employees.\44\ The Exchange also states that the
Adviser is not a broker-dealer, but is affiliated with multiple broker-
dealers and has implemented fire walls with respect to such broker
dealer affiliates regarding access to information concerning the
composition of or changes to the portfolio.\45\ The Exchange may obtain
information regarding trading in the Shares and the underlying shares
in exchange traded investment companies and futures via

the 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. In addition, the Exchange is able to
access, as needed, trade information for certain fixed income
instruments reported to Financial Industry Reporting Authority's
(``FINRA'') Trade Reporting and Compliance Engine (``TRACE'').\46\
---------------------------------------------------------------------------

    \40\ See id. at 590.
    \41\ See id.
    \42\ See id.
    \43\ See BATS Rule 14.11(i)(4)(B)(ii)(b).
    \44\ See Notice, supra note 3, 80 FR at 591.
    \45\ See supra note 7 and accompanying text. The Exchange states
that an investment adviser to an open-end fund is required to be
registered under the Investment Advisers Act of 1940 (``Advisers
Act''). As a result, the Adviser and its related personnel are
subject to the provisions of Rule 204A-1 under the Advisers Act
relating to codes of ethics. This Rule requires investment advisers
to adopt a code of ethics that reflects the fiduciary nature of the
relationship to clients as well as compliance with other applicable
securities laws. Accordingly, procedures designed to prevent the
communication and misuse of non-public information by an investment
adviser must be consistent with Rule 204A-1 under the Advisers Act.
In addition, Rule 206(4)-7 under the Advisers Act makes it unlawful
for an investment adviser to provide investment advice to clients
unless such investment adviser has (i) adopted and implemented
written policies and procedures reasonably designed to prevent
violation, by the investment adviser and its supervised persons, of
the Advisers Act and the Commission rules adopted thereunder; (ii)
implemented, at a minimum, an annual review regarding the adequacy
of the policies and procedures established pursuant to subparagraph
(i) above and the effectiveness of their implementation; and (iii)
designated an individual (who is a supervised person) responsible
for administering the policies and procedures adopted under
subparagraph (i) above.
    \46\ See Notice, supra note 3, 80 FR at 591.
---------------------------------------------------------------------------

    The Exchange represents that 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.\47\ In support of this proposal, the Exchange has made
representations, including:
---------------------------------------------------------------------------

    \47\ See id. at 590.
---------------------------------------------------------------------------

    (1) The Shares will be subject to BATS Rule 14.11(i), which sets
forth the initial and continued listing criteria applicable to Managed
Fund Shares.
    (2) The Exchange has appropriate rules to facilitate transactions
in the Shares during all trading sessions.
    (3) Trading of the Shares through the Exchange will be subject to
the Exchange's surveillance procedures for derivative products,
including Managed Fund Shares, which 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.
    (4) 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: (a) The procedures for
purchases and redemptions of Shares in creation units (and that Shares
are not individually redeemable); (b) BATS Rule 3.7, which imposes
suitability obligations on Exchange members with respect to
recommending transactions in the Shares to customers; (c) how
information regarding the Intraday Indicative Value and the Disclosed
Portfolio is disseminated; (d) the risks involved in trading the Shares
during the Pre-Opening and After Hours Trading Sessions when an updated
Intraday Indicative Value will not be calculated or publicly
disseminated; (e) the requirement that members deliver a prospectus to
investors purchasing newly issued Shares prior to or concurrently with
the confirmation of a transaction; and (f) trading information.
    (5) For initial and continued listing, the Fund must be in
compliance with Rule 10A-3 under the Exchange Act.\48\
---------------------------------------------------------------------------

    \48\ 17 CFR 240.10A-3.
---------------------------------------------------------------------------

    (6) A minimum of 100,000 Shares will be outstanding at the
commencement of trading on the Exchange.
    (7) The Fund will invest at least 80% of its assets, under normal
market conditions, in U.S. dollar-denominated investment-grade and
high-yield Fixed-Income Securities, futures, and swaps.
    (8) Derivatives investments held by the Fund will be exchange
traded and/or centrally cleared, and they will be collateralized.
    (9) The Fund will generally invest in corporate bond issuances that
have at least $250 million par amount outstanding.
    (10) The Fund may hold up to an aggregate amount of 15% of its net
assets in illiquid assets (calculated at the time of investment); will
monitor its portfolio liquidity on an ongoing basis to determine
whether, in light of current circumstances, an adequate level of
liquidity is being maintained; and will consider taking appropriate
steps in order to maintain adequate liquidity if, through a change in
values, net assets, or other circumstances, more than 15% of the Fund's
net assets are held in illiquid assets.
    (11) All of the exchange listed investment company securities and
futures that the Fund will invest in will trade on markets that are
members of ISG or with which the Exchange has in place a comprehensive
surveillance sharing agreement.
    (12) The Fund will not invest in non-U.S. equity securities.
    (13) The Fund's investments will be consistent with the Fund's
investment objective and will not be used to achieve leveraged or
inverse leveraged returns (i.e. two times or three times the Fund's
benchmark).
This approval order is based on all of the Exchange's representations
and description of the Fund, including those set forth above and in the
Notice, and the Exchange's description of the Fund.
    For the foregoing reasons, the Commission finds that the proposed
rule change, as modified by Amendment No. 1 thereto, is consistent with
Section 6(b)(5) of the Act \49\ and the rules and regulations
thereunder applicable to a national securities exchange.
---------------------------------------------------------------------------

    \49\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\50\ that the proposed rule change (SR-BATS-2014-056), as modified
by Amendment No. 1 thereto, be, and it hereby is, approved.
---------------------------------------------------------------------------

    \50\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\51\
---------------------------------------------------------------------------

    \51\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Brent J. Fields,
Secretary.
[FR Doc. 2015-03666 Filed 2-23-15; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 80, Number 234 (Monday, December 7, 2015)]
[Notices]
[Pages 76047-76049]
[FR Doc No: 2015-30786]

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DEPARTMENT OF LABOR

Occupational Safety and Health Administration

[Docket No. OSHA-2013-0017]

Quality Auditing Institute, Ltd.: Application for Expansion of
Recognition and Modification to the List of Appropriate NRTL Program
Test Standards

AGENCY: Occupational Safety and Health Administration (OSHA), Labor.

ACTION: Notice.

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

SUMMARY: In this notice, OSHA announces the application of Quality
Auditing Institute, Ltd. for expansion of its recognition as a
Nationally Recognized Testing Laboratory (NRTL) and presents the
Agency's preliminary finding to grant the application. Additionally,
OSHA proposes to add a new test standard to the NRTL list of
appropriate test standards.

DATES: Submit comments, information, and documents in response to this
notice, or requests for an extension of time to make a submission, on
or before December 22, 2015.

ADDRESSES: Submit comments by any of the following methods:
    1. Electronically: Submit comments and attachments electronically
at http://www.regulations.gov, which is the Federal eRulemaking Portal.
Follow the instructions online for making electronic submissions.
    2. Facsimile: If submissions, including attachments, are not longer
than 10 pages, commenters may fax them to the OSHA Docket Office at
(202) 693-1648.
    3. Regular or express mail, hand delivery, or messenger (courier)
service: Submit comments, requests, and any attachments to the OSHA
Docket Office, Docket No. OSHA-2013-0017, Technical Data Center, U.S.
Department of Labor, 200 Constitution Avenue NW., Room N-2625,
Washington, DC 20210; telephone:<PHONE_NUMBER> (TTY number: (877) 889-
5627). Note that security procedures may result in significant delays
in receiving comments and other written materials by regular mail.
Contact the OSHA Docket Office for information about security
procedures concerning delivery of materials by express mail, hand
delivery, or messenger service. The hours of operation for the OSHA
Docket Office are 8:15 a.m.-4:45 p.m., e.t.
    4. Instructions: All submissions must include the Agency name and
the OSHA docket number (OSHA-2013-0017). OSHA places comments and other
materials, including any personal information, in the public docket
without revision, and these materials will be available online at
http://www.regulations.gov. Therefore, the Agency cautions commenters
about submitting statements they do not want made available to the
public, or submitting comments that contain personal information
(either about themselves or others) such as Social Security numbers,
birth dates, and medical data.
    5. Docket: To read or download submissions or other material in the
docket, go to http://www.regulations.gov or the OSHA Docket Office at
the address above. All documents in the docket are listed in the http://www.regulations.gov index; however, some information (e.g.,
copyrighted material) is not publicly available to read or download
through the Web site. All submissions, including copyrighted material,
are available for inspection at the OSHA Docket Office. Contact the
OSHA Docket Office for assistance in locating docket submissions.
    6. Extension of comment period: Submit requests for an extension of
the comment period on or before December 22, 2015 to the Office of
Technical Programs and Coordination Activities, Directorate of
Technical Support and Emergency Management, Occupational Safety and
Health Administration, U.S. Department of Labor, 200 Constitution
Avenue NW., Room N-3655, Washington, DC 20210, or by fax to (202) 693-
1644.

FOR FURTHER INFORMATION CONTACT: Information regarding this notice is
available from the following sources:
    Press inquiries: Contact Mr. Frank Meilinger, Director, OSHA Office
of Communications, U.S. Department of Labor, 200 Constitution Avenue
NW., Room N-3647, Washington, DC 20210; telephone:<PHONE_NUMBER>;
email<EMAIL_ADDRESS>    General and technical information: Contact Mr. Kevin Robinson,
Director, Office of Technical Programs and Coordination Activities,
Directorate of Technical Support and Emergency Management, Occupational
Safety and Health Administration, U.S. Department

of Labor, 200 Constitution Avenue NW., Room N-3655, Washington, DC
20210; phone:<PHONE_NUMBER> or email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

I. Notice of the Application for Expansion

    The Occupational Safety and Health Administration is providing
notice that Quality Auditing Institute, Ltd. (QAI), is applying for
expansion of its current recognition as an NRTL. QAI requests the
addition of sixteen test standards to its NRTL scope of recognition.
    OSHA recognition of an NRTL signifies that the organization meets
the requirements specified in 29 CFR 1910.7. Recognition is an
acknowledgment that the organization can perform independent safety
testing and certification of the specific products covered within its
scope of recognition. Each NRTL's scope of recognition includes (1) the
type of products the NRTL may test, with each type specified by its
applicable test standard; and (2) the recognized site(s) that has/have
the technical capability to perform the product-testing and product-
certification activities for test standards within the NRTL's scope.
Recognition is not a delegation or grant of government authority;
however, recognition enables employers to use products approved by the
NRTL to meet OSHA standards that require product testing and
certification.
    The Agency processes applications by an NRTL for initial
recognition and for an expansion or renewal of this recognition,
following requirements in Appendix A to 29 CFR 1910.7. This appendix
requires that the Agency publish two notices in the Federal Register in
processing an application. In the first notice, OSHA announces the
application and provides its preliminary finding. In the second notice,
the Agency provides its final decision on the application. These
notices set forth the NRTL's scope of recognition or modifications of
that scope. OSHA maintains an informational Web page for each NRTL,
including QAI, which details the NRTL's scope of recognition. These
pages are available from the OSHA Web site at http://www.osha.gov/dts/otpca/nrtl/index.html.
    QAI currently has two facilities (sites) recognized by OSHA for
product testing and certification, with its headquarters located at:
#16-211 Schoolhouse Street, Coquitlam, B.C., V3K 4X9, Canada. A
complete list of QAI's scope of recognition is available at https://www.osha.gov/dts/otpca/nrtl/qai.html.

II. General Background on the Application

    QAI submitted an application, dated November 18, 2014 (Exhibit 15-
1--Application for Scope Expansion OSHA-2013-0017), to expand its
recognition to include sixteen additional test standards. OSHA staff
performed detailed analysis of the application packet and reviewed
other pertinent information. OSHA did not perform any on-site reviews
in relation to this application.
    Table 1 below lists the test standards found in QAI's application
for expansion for testing and certification of products under the NRTL
Program. All of these standards already appear on OSHA's list of
appropriate test standards except UL 962, Standard for Household and
Commercial Furnishings. As discussed below, OSHA is proposing to add UL
962 to the appropriate test standard list by this notice.

  Table 1--Proposed List of Appropriate Test Standards for Inclusion in
                     QAI's NRTL Scope of Recognition
------------------------------------------------------------------------
           Test standard                     Test standard title
------------------------------------------------------------------------
UL 48.............................  Standard for Electric Signs.
UL 153............................  Standard for Portable Electric
                                     Luminaires.
UL 234............................  Standard for Low Voltage Lighting
                                     Fixtures for Use in Recreational
                                     Vehicles.
UL 355............................  Standard for Cord Reels.
UL 507............................  Standard for Electric Fans.
UL 508............................  Standard for Industrial Control
                                     Equipment.
UL 508A...........................  Standard for Industrial Control
                                     Panels.
UL 514C...........................  Standard for Nonmetallic Outlet
                                     Boxes, Flush-Device Boxes and
                                     Covers.
UL 514D...........................  Cover Plates for Flush-Mounted
                                     Wiring Devices.
UL 962\*\.........................  Standard for Household and
                                     Commercial Furnishings.
UL 1574...........................  Standard for Track Lighting Systems.
UL 1993...........................  Self-Ballasted Lamps and Lamp
                                     Adapters.
UL 2108...........................  Standard for Low Voltage Lighting
                                     Systems.
UL 60950-1........................  Information Technology Equipment--
                                     Safety--Part 1: General
                                     Requirements.
UL 61010-1........................  Safety Requirements for Electrical
                                     Equipment Measurement, Control, and
                                     Laboratory Use--Part 1: General
                                     Requirements.
UL 8750...........................  Standard for Light Emitting Diode
                                     (LED) Equipment for Use in Lighting
                                     Products.
------------------------------------------------------------------------
\*\Represents a new standard that OSHA is proposing to add to the NRTL
  Program's List of Appropriate Test Standards.

III. Proposal To Add New Test Standards to the NRTL Program's List of
Appropriate Test Standards

    Periodically, OSHA will propose to add new test standards to the
NRTL list of appropriate test standards following an evaluation of the
test standard document. To qualify as an appropriate test standard, the
Agency evaluates the document to (1) verify it represents a product
category for which OSHA requires certification by an NRTL, (2) verify
the document represents an end product and not a component, and (3)
verify the document defines safety test specifications (not
installation or operational performance specifications).
    In this notice, OSHA proposes to add a new test standard to the
NRTL Program's list of appropriate test standards. Table 2, below,
lists the test standard new to the NRTL Program. OSHA preliminarily
determined that this test standard is an appropriate test standard and
proposes to include this test standard in the NRTL Program's list of
appropriate test standards. OSHA seeks public comment on this
preliminary determination.

  Table 2--Test Standard OSHA Is Proposing To Add to the NRTL Program's
                   List of Appropriate Test Standards
------------------------------------------------------------------------
           Test standard                     Test standard title
------------------------------------------------------------------------
UL 962............................  Standard for Household and
                                     Commercial Furnishings.
------------------------------------------------------------------------

IV. Preliminary Findings on QAI's Application

    QAI submitted an acceptable application for expansion of its scope
of recognition. OSHA's review of the application file and pertinent
information indicate that QAI can meet the requirements prescribed by
29 CFR 1910.7 for expanding its recognition to include the addition of
these sixteen test standards for NRTL testing and certification listed
above. This preliminary finding does not constitute an interim or
temporary approval of QAI's application.
    OSHA welcomes public comment as to whether QAI meets the
requirements of 29 CFR 1910.7 for expansion of its recognition as an
NRTL. Comments should consist of pertinent written documents and
exhibits. Commenters needing more time to comment must submit a request
in writing, stating the reasons for the request. Commenters must submit
the written request for an extension by the due date for comments. OSHA
will limit any extension to 10 days unless the requester justifies a
longer period. OSHA may deny a request for an extension if the request
is not adequately justified. To obtain or review copies of the exhibits
identified in this notice, as well as comments submitted to the docket,
contact the Docket Office, Room N-2625, Occupational Safety and Health
Administration, U.S. Department of Labor, at the above address. These
materials also are available online at http://www.regulations.gov under
Docket No. OSHA-2013-0017.
    OSHA staff will review all comments to the docket submitted in a
timely manner and, after addressing the issues raised by these
comments, will recommend to the Assistant Secretary for Occupational
Safety and Health whether to grant QAI's application for expansion of
its scope of recognition. The Assistant Secretary will make the final
decision on granting the application. In making this decision, the
Assistant Secretary may undertake other proceedings prescribed in
Appendix A to 29 CFR 1910.7.
    OSHA will publish a public notice of its final decision in the
Federal Register.

Authority and Signature

    David Michaels, Ph.D., MPH, Assistant Secretary of Labor for
Occupational Safety and Health, 200 Constitution Avenue NW.,
Washington, DC 20210, authorized the preparation of this notice.
Accordingly, the Agency is issuing this notice pursuant to 29 U.S.C.
657(g)(2), Secretary of Labor's Order No. 1-2012 (77 FR 3912, Jan. 25,
2012), and 29 CFR 1910.7.

    Signed at Washington, DC, on December 2, 2015.
David Michaels,
Assistant Secretary of Labor for Occupational Safety and Health.
[FR Doc. 2015-30786 Filed 12-4-15; 8:45 am]
 BILLING CODE 4510-26-P


[Federal Register Volume 80, Number 39 (Friday, February 27, 2015)]
[Notices]
[Pages 10743-10744]
[FR Doc No: 2015-04226]

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SECURITIES AND EXCHANGE COMMISSION

[File No. 500-1]

 In the Matter of Energiz Renewable, Inc., Iron Eagle Group,
Inc., and MedClean Technologies, Inc.; Order of Suspension of Trading

February 25, 2015.
    It appears to the Securities and Exchange Commission that there is
a lack of current and accurate information concerning the securities of
Energiz Renewable, Inc. because it has not filed any periodic reports
since the period ended September 30, 2011.
    It appears to the Securities and Exchange Commission that there is
a lack of current and accurate information concerning the securities of
Iron Eagle Group, Inc. because it has not filed any periodic reports
since the period ended June 30, 2012.
    It appears to the Securities and Exchange Commission that there is
a lack of current and accurate information concerning the securities of
MedClean Technologies, Inc. because it has not filed any periodic
reports since the period ended September 30, 2012.
    The Commission is of the opinion that the public interest and the
protection of investors require a suspension of trading in the
securities of the above-listed companies. Therefore, it is ordered,
pursuant to Section 12(k) of the Securities Exchange Act of 1934, that
trading in the securities of the above-listed companies is suspended
for the period from 9:30 a.m. EST on February 25, 2015, through 11:59
p.m. EDT on March 10, 2015.

    By the Commission.
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2015-04226 Filed 2-25-15; 4:15 pm]
BILLING CODE 8011-01-P