[Federal Register Volume 80, Number 110 (Tuesday, June 9, 2015)]
[Notices]
[Pages 32641-32644]
[FR Doc No: 2015-13986]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75100; File No. SR-NYSEArca-2015-47]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Relating to
Representation Regarding the AdvisorShares WCM/BNY Mellon Focused
Growth ADR ETF's Holdings of American Depositary Receipts

June 3, 2015.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that, on May 27, 2015, NYSE Arca, Inc. (the ``Exchange'' or ``NYSE
Arca'') 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 Exchange. 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\ 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 change a representation regarding the
AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF's holdings of
American Depositary Receipts. Shares of the WCM/BNY Mellon Focused
Growth ADR ETF have been approved for listing and trading on the
Exchange under NYSE Arca Equities Rule 8.600. 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 the
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Commission has approved a proposed rule change relating to
listing and trading on the Exchange of shares (``Shares'') of the
AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF (the ``Fund'')
under NYSE Arca Equities Rule 8.600, \3\ which governs the listing and
trading of Managed Fund Shares.\4\

The Fund's Shares are currently listed and traded on the Exchange under
NYSE Arca Equities Rule 8.600.
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    \3\ See Securities Exchange Act Release No. 62502 (July 15,
2010), 75 FR 42471 (July 21, 2010) (SR-NYSEArca-2010-57) (the
``Prior Order''). The notice with respect to the Prior Order was
published in Securities Exchange Act Release No. 62344 (June 21,
2010), 75 FR 37498 (June 29, 2010) (``Prior Notice'' and, together
with the Prior Order, the ``Prior Release'').
    \4\ A Managed Fund Share is a security that represents an
interest in an investment company registered under the Investment
Company Act of 1940 (15 U.S.C. 80a-1) (``1940 Act'') organized as an
open-end investment company or similar entity that invests in a
portfolio of securities selected by its investment adviser
consistent with its investment objectives and policies. In contrast,
an open-end investment company that issues Investment Company Units,
listed and traded on the Exchange under NYSE Arca Equities Rule
5.2(j)(3), seeks to provide investment results that correspond
generally to the price and yield performance of a specific foreign
or domestic stock index, fixed income securities index or
combination thereof.
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    The Shares are offered by AdvisorShares Trust (the ``Trust''), a
statutory trust organized under the laws of the State of Delaware and
registered with the Commission as an open-end management investment
company.\5\ The investment adviser to the Fund is AdvisorShares
Investments, LLC (the ``Adviser''). WCM Investment Management (``WCM'')
is the sub-adviser and portfolio manager to the Fund (``Sub-Adviser'').
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    \5\ The Trust is registered under the 1940 Act. On November 1,
2014, the Trust filed with the Commission an amendment to its
registration statement on Form N-1A under the Securities Act of 1933
(15 U.S.C. 77a) and the 1940 Act relating to the Fund (File Nos.
333-157876 and 811-22110) (the ``Registration Statement''). The
description of the operation of the Trust and the Fund herein is
based, in part, on the Registration Statement. In addition, the
Commission has issued an order granting certain exemptive relief to
the Trust under the 1940 Act. See Investment Company Act Release No.
29291 (May 28, 2010) (File No. 812-13677) (``Exemptive Order'').
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    According to the Registration Statement, and as stated in the Prior
Release, the Fund's investment objective is long-term capital
appreciation above international benchmarks such as the BNY Mellon
Classic ADR Index and the MSCI EAFE Index. WCM seeks to achieve the
Fund's investment objective by selecting a portfolio of U.S. traded
securities of non-U.S. organizations included in the BNY Mellon Classic
ADR Index. The BNY Mellon Classic ADR Index predominantly includes
American Depositary Receipts (``ADRs'') and, in addition, includes
other Depositary Receipts (``DRs''), which include Global Depositary
Receipts (``GDRs''), Euro Depositary Receipts (``Euro DRs'') and New
York Shares (``NYSs'').\6\
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    \6\ According to the Registration Statement, DRs, which include
ADRs, GDRs, Euro DRs and NYSs, are negotiable securities that
generally represent a non-U.S. company's publicly traded equity or
debt. Depositary Receipts may be purchased in the U.S. secondary
trading market. They may trade freely, just like any other security,
either on an exchange or in the over-the-counter market. Although
typically denominated in U.S. dollars, Depositary Receipts can also
be denominated in Euros. Depositary Receipts can trade on all U.S.
stock exchanges as well as on many European stock exchanges.
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    The Prior Release stated that the Fund, under normal circumstances,
will have at least 80% of its total assets invested in ADRs (the ``80%
Representation''). The Fund also may invest in other equity securities,
including common and preferred stock, warrants, convertible securities
and master limited partnerships. As stated in the Prior Release, the
Fund's portfolio consists primarily of ADRs.\7\
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    \7\ The Prior Release further stated that the Fund will not
invest in non-U.S. equity securities outside of U.S. markets. The
Exchange recently has filed a proposed rule change pursuant to Rule
19b-4 under the Act that amended such statement in the Prior Release
to provide that the Fund may invest in securities outside of U.S.
markets, and that not more than 10% of the net assets of the Fund in
the aggregate invested in equity securities (excluding non-exchange-
traded investment company securities) shall consist of equity
securities whose principal market is not a member of the Intermarket
Surveillance Group (``ISG'') or is a market with which the Exchange
does not have a comprehensive surveillance sharing agreement. See
Securities Exchange Act Release No. 74271 (February 13, 2015), 80 FR
9301 (February 20, 2015) (SR-NYSEArca-2015-06) (``Second Prior
Release'').
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    The Exchange has notified the Fund that it currently is not in
compliance with the 80% Representation.\8\ In order to permit the
continued listing and trading of Shares of the Fund, the Exchange
proposes to amend such statement in the Prior Release to provide that
the Fund will invest at least 80% of its total assets in ADRs and other
equity securities, including common and preferred stock, warrants,
convertible securities and master limited partnerships. However, the
Fund's portfolio will consist primarily of ADRs.
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    \8\ The Trust issued a press release, dated March 24, 2015,
relating to the non-compliance. The Exchange also has added a
``below compliance'' (``.BC'') indicator to the Fund's trading
symbol.
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    As stated in the Second Prior Release, the Fund now may invest in
non-U.S. equity securities, subject to a limitation on net assets
invested in equity securities whose principal market is not a member of
the ISG.\9\ Therefore, the Fund, in certain cases, could choose to
acquire exposure to non-U.S. equity markets by investing in non-U.S.
equities directly rather than by investing in ADRs. Therefore, it is
appropriate to reduce the percentage of Fund assets required to be in
ADRs. In addition, a reduced threshold for ADR investment would allow
the Fund to take advantage of opportunities in the equities markets
without being subject to the 80% Representation, in furtherance of the
Fund's investment objective. Nevertheless, the Fund's portfolio would
continue to consist primarily of ADRs (i.e., more than 50% of the
Fund's total assets would be invested in ADRs).
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    \9\ See note 7, supra.
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    The Exchange notes that the Commission has previously approved
similar percentage limitations for other funds listed on the Exchange
under NYSE Arca Equities Rule 8.600.\10\
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    \10\ See, e.g., Securities Exchange Act Release No. 71540
(February 12, 2014) (SR-NYSEArca-2013-138) (order approving listing
and trading of shares of iShares Enhanced International Large-Cap
ETF and iShares Enhanced International Small-Cap ETF Under NYSE Arca
Equities Rule 8.600).
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    Except for the change described above, all other representations
made in the Prior Release and the Second Prior Release remain
unchanged.\11\ The Fund will continue to comply with all initial and
continued listing requirements under NYSE Arca Equities Rule 8.600.
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    \11\ See notes 3 and 7, supra. All terms referenced but not
defined herein are defined in the Prior Release.
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    The Exchange represents that the trading in the Shares will be
subject to the existing trading surveillances, administered by the
Financial Industry Regulatory Authority (``FINRA'') on behalf of the
Exchange, which are designed to detect violations of Exchange rules and
applicable federal securities laws.\12\ The Exchange represents that
these procedures are adequate to properly monitor Exchange trading of
the Shares in all trading sessions and to deter and detect violations
of Exchange rules and federal securities laws applicable to trading on
the Exchange. FINRA, on behalf of the Exchange, will communicate as
needed regarding trading in the Shares and exchange-listed equity
securities (including ADRs) with other markets and other entities that
are members of the ISG, and FINRA, on behalf of the Exchange, may
obtain trading information regarding trading in the Shares and
exchange-listed equity securities (including ADRs) from such markets
and other entities. The Exchange may obtain information regarding
trading in the Shares and exchange-listed equity securities (including
ADRs) from markets and other entities that are members of ISG or with
which the Exchange has in place a comprehensive surveillance sharing
agreement.\13\ In addition, as stated in the Prior Release, investors
have ready access to information regarding the Fund's holdings, the
Portfolio Indicative Value, the Disclosed Portfolio, and quotation and
last sale information for the Shares.
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    \12\ FINRA surveils trading on the Exchange pursuant to a
regulatory services agreement. The Exchange is responsible for
FINRA's performance under this regulatory services agreement.
    \13\ For a list of the current members of ISG, see
www.isgportal.org. The Exchange notes that not all of the components
of the portfolio for the Fund may trade on exchanges that are
members of the ISG or with which the Exchange has in place a
comprehensive surveillance sharing agreement.

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2. Statutory Basis
    The basis under the Act for this proposed rule change is the
requirement under section 6(b)(5) \14\ that an exchange have rules that
are designed to prevent fraudulent and manipulative acts and practices,
to promote just and equitable principles of trade, to remove
impediments to, and perfect the mechanism of a free and open market
and, in general, to protect investors and the public interest.
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    \14\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes that the proposed rule change is designed to
prevent fraudulent and manipulative acts and practices in that the
Shares are listed and traded on the Exchange pursuant to the initial
and continued listing criteria in NYSE Arca Equities Rule 8.600. As
noted above, the Fund now may invest in non-U.S. equity securities,
subject to a limitation on net assets invested in equity securities
whose principal market is not a member of the ISG. Therefore, the Fund,
in certain cases, could choose to acquire exposure to non-U.S. equity
markets by investing in non-U.S. equities directly rather than by
investing in ADRs. Therefore, it is appropriate to reduce the
percentage of Fund assets required to be in ADRs. In addition, a
reduced threshold for ADR investment would allow the Fund to take
advantage of opportunities in the equities markets without being
subject to the 80% Representation, in furtherance of the Fund's
investment objective. The Fund's portfolio would continue to consist
primarily of ADRs (i.e., more than 50% of the Fund's total assets would
be invested in ADRs). The Commission has previously approved similar
percentage limitations for other funds listed on the Exchange under
NYSE Arca Equities Rule 8.600.\15\ The Exchange notes that that not
more than 10% of the net assets of the Fund in the aggregate invested
in equity securities (excluding non-exchange-traded investment company
securities) shall consist of equity securities whose principal market
is not a member of the ISG or is a market with which the Exchange does
not have a comprehensive surveillance sharing agreement. Such a
representation assures that most applicable exchange-traded assets of
the Fund will be assets whose principal market is an ISG member or a
market with which the Exchange has a comprehensive surveillance sharing
agreement.
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    \15\ See note 10, supra.
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    The Exchange has in place surveillance procedures that are adequate
to properly monitor trading in the Shares in all trading sessions and
to deter and detect violations of Exchange rules and applicable federal
securities laws. The Exchange may obtain information via the ISG from
other exchanges that are members of ISG or with which the Exchange has
entered into a comprehensive surveillance sharing agreement.
    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 net asset value (``NAV'') per Share is calculated daily and
that the NAV and the Disclosed Portfolio is made available to all
market participants at the same time. In addition, a large amount of
information is publicly available regarding the Fund and the Shares,
thereby promoting market transparency. The Portfolio Indicative Value,
as defined in NYSE Arca Equities Rule 8.600(c)(3), is disseminated by
one or more major market data vendors at least every 15 seconds during
the Exchange's Core Trading Session. On a daily basis, the Adviser
discloses for each portfolio security or other financial instrument of
the Fund the following information: ticker symbol (if applicable), name
of security or financial instrument, number of shares or dollar value
of financial instruments held in the portfolio, and percentage
weighting of the security or financial instrument in the portfolio. The
Fund's holdings are disclosed on its Web site daily after the close of
trading on the Exchange and prior to the opening of trading on the
Exchange the following day. Information regarding market price and
trading volume of the Shares is and 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 is
available via the Consolidated Tape Association high-speed line. Price
information regarding the Fund's equity investments is available from
major market data vendors. The intra-day, closing and settlement prices
for exchange-listed equity securities held by the Fund are also readily
available from the national securities exchanges trading such
securities. Trading in Shares of the Fund will be halted if the circuit
breaker parameters in NYSE Arca Equities Rule 7.12 have been reached or
because of market conditions or for reasons that, in the view of the
Exchange, make trading in the Shares inadvisable. Trading in the Shares
is subject to NYSE Arca Equities Rule 8.600(d)(2)(D), which sets forth
circumstances under which Shares of the Fund may be halted. The Web
site for the Fund includes a form of the prospectus for the Fund and
additional data relating to NAV and other applicable quantitative
information. In addition, as stated in the Prior Notice, investors have
ready access to information regarding the Fund's holdings, the
Portfolio Indicative Value, the Disclosed Portfolio, and quotation and
last sale information for the Shares.
    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. As noted above, the Exchange represents that the
trading in the Shares is subject to the existing trading surveillances,
administered by FINRA on behalf of the Exchange, which are designed to
detect violations of Exchange rules and applicable federal securities
laws. The Exchange represents that these procedures are adequate to
properly monitor Exchange trading of the Shares in all trading sessions
and to deter and detect violations of Exchange rules and federal
securities laws applicable to trading on the Exchange. FINRA, on behalf
of the Exchange, will communicate as needed regarding trading in the
Shares and exchange-listed equity securities (including ADRs) with
other markets and other entities that are members of the ISG, and
FINRA, on behalf of the Exchange, may obtain trading information
regarding trading in the Shares and exchange-listed equity securities
(including ADRs) from such markets and other entities. In addition, the
Exchange may obtain information regarding trading in the Shares and
exchange-listed equity securities (including ADRs) from markets and
other entities that are members of ISG or with which the Exchange has
in place a comprehensive surveillance sharing agreement. The Adviser
represents that the proposed change, as described above, is consistent
with the Fund's investment objective, and will further assist the
Adviser and Sub-Adviser to achieve such investment objective. Such an
increase may further the public interest by providing the Fund with
additional flexibility to achieve long-term capital appreciation above
international benchmarks.

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 believes the
proposed rule change is designed to allow the Fund to invest in a
broader range of non-U.S. equity

securities thereby helping the Fund to achieve its investment
objective, and will enhance competition among issues of Managed Fund
Shares that invest in non-U.S. equity securities.

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

    Because the proposed rule change does not (i) significantly affect
the protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative for 30
days from the date on which it was filed, or such shorter time as the
Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to section 19(b)(3)(A) of the Act \16\ and Rule 19b-
4(f)(6) thereunder.\17\
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    \16\ 15 U.S.C. 78s(b)(3)(A).
    \17\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written
notice of its intent to file the proposed rule change, along with a
brief description and the text of the proposed rule change, at least
five business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission.
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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) of the Act \18\ to determine whether the proposed
rule change should be approved or disapproved.
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    \18\ 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-NYSEArca-2015-47 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-NYSEArca-2015-47. 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 Section, 100 F Street
NE., Washington, DC 20549 on official business days between 10:00 a.m.
and 3:00 p.m. Copies of the filing will also be available for
inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-NYSEArca-2015-47 and should
be submitted on or before June 30, 2015.
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    \19\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-13986 Filed 6-8-15; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register: March 26, 2008 (Volume 73, Number 59)]
[Rules and Regulations]
[Page 15898-15900]
[DOCID:fr26mr08-17]

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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 100

[Docket No. USCG-2008-0074]
RIN 1625-AA08

Special Local Regulations for Marine Events; Western Branch,
Elizabeth River, Portsmouth, VA

AGENCY: Coast Guard, DHS.

ACTION: Temporary final rule.

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SUMMARY: The Coast Guard is establishing temporary special local
regulations during the ``Virginia State Hydroplane Championship'' power
boat races, a marine event to be held on the waters of the Western
Branch of the Elizabeth River at Portsmouth, Virginia on April 19 and
20, 2008. These special local regulations are necessary to provide for
the safety of life on navigable waters during the event. This action is
intended to restrict vessel traffic in the Western Branch of the
Elizabeth River during the event.

DATES: This rule is effective from 8 a.m. on April 19, 2008 through 6
p.m. on April 20, 2008.

ADDRESSES: Documents indicated in this preamble as being available in
the docket are part of docket USCG-2008-0074 and are available online
at www.regulations.gov. They are also available for inspection or
copying at two locations: The Docket Management Facility (M-30), U.S.
Department of Transportation, West Building Ground Floor, Room W12-140,
1200 New Jersey Avenue, SE., Washington, DC 20590, between 9 a.m. and 5
p.m., Monday through Friday, except Federal holidays, and the Fifth
Coast Guard District, Inspections and Investigations Branch, 431
Crawford Street, Portsmouth, VA 23704 between 9 a.m. and 2 p.m., Monday
through Friday, except Federal holidays.

FOR FURTHER INFORMATION CONTACT: Dennis Sens, Project Manager, Fifth
Coast Guard District, Inspections and Investigations Branch, at (757)
398-6204.

SUPPLEMENTARY INFORMATION:

Regulatory Information

    We did not publish a notice of proposed rulemaking (NPRM) for this
regulation. Under 5 U.S.C. 553(b)(B), the Coast Guard finds that good
cause exists for not publishing an NPRM. Publishing an NPRM would be
impracticable and contrary to public interest since immediate action is
needed to minimize potential danger to the public during the event. The
danger posed by high speed power boat races makes special local
regulations necessary to provide for the safety of event participants,
support vessels, spectator craft and other vessels transiting the event
area. For the safety concerns noted, it is in the public interest to
have these regulations in effect during the event. The Coast Guard will
issue broadcast notice to mariners to advise vessel operators of
navigational restrictions. On scene Coast Guard and local law
enforcement vessels will also provide actual notice to mariners.

Background and Purpose

    On April 19 and 20, 2008, Virginia Boat Racing Association will
sponsor the ``Virginia State Hydroplane Championship'' hydroplane races
on the waters of the Western Branch, Elizabeth River at Portsmouth,
Virginia. The event will consist of approximately 60 hydroplane
powerboats conducting high-speed competitive races on the Western
Branch of the Elizabeth River in the vicinity of Portsmouth City Park,
Portsmouth, Virginia. A fleet of spectator vessels is expected to
gather near the event site to view the competition. To provide for the
safety of participants, spectators, support and transiting vessels, the
Coast Guard will temporarily restrict vessel traffic in the event area
during the hydroplane races.

Discussion of Rule

    The special local regulations will be enforced from 8 a.m. to 6
p.m. on April 19 and 20, 2008, and will restrict navigation in the
regulated area during the hydroplane races. Except for persons or
vessels authorized by the Coast Guard Patrol Commander, no person or
vessel may enter or remain in the regulated area during the effective
period. The regulated area is needed to control vessel traffic during
the event to enhance the safety of participants and transiting vessels.
    In addition to notice in the Federal Register, the maritime
community will be provided extensive advance notification via the Local
Notice to Mariners, marine information broadcasts, local newspapers and
radio stations so mariners can adjust their plans accordingly.

Regulatory Evaluation

    This rule is not a ``significant regulatory action'' under section
3(f) of Executive Order 12866, Regulatory Planning and Review, and does
not require an assessment of potential costs and benefits under section
6(a)(3) of that Order. The Office of Management and Budget has not
reviewed it under that Order. It is not ``significant'' under the
regulatory policies and procedures of the Department of Homeland
Security (DHS).
    We expect the economic impact of this rule to be so minimal that a
full Regulatory Evaluation under the regulatory policies and procedures
of DHS is unnecessary. Although this regulation will prevent traffic
from transiting a portion of the Western Branch of the Elizabeth River
during the event, the effect of this regulation will not be significant
due to the limited duration that the regulated area will be in effect
and the extensive advance notifications that will be made to the
maritime community via the Local Notice to Mariners, marine information
broadcasts, and area newspapers, so mariners can adjust their plans
accordingly. Additionally, the regulated area has been narrowly
tailored to impose the least impact on general navigation yet provide
the level of safety deemed necessary. Vessel traffic will be able to
transit the regulated area between heats, when the Coast Guard Patrol
Commander deems it is safe to do so.

Small Entities

    Under the Regulatory Flexibility Act (5 U.S.C. 601-612), we have
considered whether this rule would have a significant economic impact
on a substantial number of small entities. The term ``small entities''
comprises small businesses, not-for-profit organizations that are
independently owned and operated and are not dominant in their fields,
and governmental jurisdictions with populations of less than 50,000.
    The Coast Guard certifies under 5 U.S.C. 605(b) that this rule will
not have a significant economic impact on a substantial number of small
entities. This rule would affect the following entities, some of which
might be small entities: The owners or operators of vessels intending
to transit or anchor in a portion of the Western Branch, Elizabeth
River during the event.
    This rule would not have a significant economic impact on a
substantial number of small entities for the following reasons. This
rule would be in effect for only a limited period. Vessel traffic will
be able to transit the regulated area between heats, when the Coast
Guard Patrol Commander deems it is safe to do so. Before the
enforcement period, we will issue maritime advisories so mariners can
adjust their plans accordingly.

Assistance for Small Entities

    Under section 213(a) of the Small Business Regulatory Enforcement
Fairness Act of 1996 (Pub. L. 104-121), we offer to assist small
entities in understanding the rule so that they can better evaluate its
effects on them and participate in the rulemaking process.
    Small businesses may send comments on the actions of Federal
employees who enforce, or otherwise determine compliance with, Federal
regulations to the Small Business and Agriculture Regulatory
Enforcement Ombudsman and the Regional Small Business Regulatory
Fairness Boards. The Ombudsman evaluates these actions annually and
rates each agency's responsiveness to small business. If you wish to
comment on actions by employees of the Coast Guard, call 1-888-REG-FAIR
(1-888-734-3247). The Coast Guard will not retaliate against small
entities that question or complain about this rule or any policy or
action of the Coast Guard.

Collection of Information

    This rule calls for no new collection of information under the
Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520).

Federalism

    A rule has implications for federalism under Executive Order 13132,
Federalism, if it has a substantial direct effect on State or local
governments and would either preempt State law or impose a substantial
direct cost of compliance on them. We have analyzed this rule under
that Order and have determined that it does not have implications for
federalism.

Unfunded Mandates Reform Act

    The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538)
requires Federal agencies to assess the effects of their discretionary
regulatory actions. In particular, the Act addresses actions that may
result in the expenditure by a State, local, or tribal government, in
the aggregate, or by the private sector of $100,000,000 or more in any
one year. Though this rule will not result in such an expenditure, we
do discuss the effects of this rule elsewhere in this preamble.

Taking of Private Property

    This rule will not effect a taking of private property or otherwise
have taking implications under Executive Order 12630, Governmental
Actions and Interference with Constitutionally Protected Property
Rights.

Civil Justice Reform

    This rule meets applicable standards in sections 3(a) and 3(b)(2)
of Executive Order 12988, Civil Justice Reform, to minimize litigation,
eliminate ambiguity, and reduce burden.

Protection of Children

    We have analyzed this rule under Executive Order 13045, Protection
of Children from Environmental Health Risks and Safety Risks. This rule
is not an economically significant rule and does not create an
environmental risk to health or risk to safety that may
disproportionately affect children.

Indian Tribal Governments

    This rule does not have tribal implications under Executive Order
13175, Consultation and Coordination with Indian Tribal Governments,
because it does not have a substantial direct effect on one or more
Indian tribes, on the relationship between the Federal Government and
Indian tribes, or on the distribution of power and responsibilities
between the Federal Government and Indian tribes.

Energy Effects

    We have analyzed this rule under Executive Order 13211, Actions
Concerning Regulations That Significantly Affect Energy Supply,
Distribution, or Use. We have determined that it is not a ``significant
energy action'' under that order because it is not a ``significant
regulatory action'' under Executive Order 12866 and is not likely to
have a significant adverse effect on the supply, distribution, or use
of energy. The Administrator of the Office of Information and
Regulatory Affairs has not designated it as a significant energy
action. Therefore, it does not require a Statement of Energy Effects
under Executive Order 13211.

Technical Standards

    The National Technology Transfer and Advancement Act (NTTAA) (15
U.S.C. 272 note) directs agencies to use voluntary consensus standards
in their regulatory activities unless the agency provides Congress,
through the Office of Management and Budget, with an explanation of why
using these standards would be inconsistent with applicable law or
otherwise impractical. Voluntary consensus standards are technical
standards (e.g., specifications of materials, performance, design, or
operation; test methods; sampling procedures; and related management
systems practices) that are developed or adopted by voluntary consensus
standards bodies.
    This rule does not use technical standards. Therefore, we did not
consider the use of voluntary consensus standards.

Environment

    We have analyzed this rule under Commandant Instruction M16475.lD
which guides the Coast Guard in complying with the National
Environmental Policy Act of 1969 (NEPA) (42 U.S.C. 4321-4370f), and
have concluded that there are no factors in this case that would limit
the use of a categorical exclusion under section 2.B.2 of the
Instruction. Therefore, this rule is categorically excluded, under
figure 2-1, paragraph (34)(h), of the Instruction, from further
environmental documentation. Special local regulations issued in
conjunction with a regatta or marine event permit are specifically
excluded from further analysis and documentation under that section.
    Under figure 2-1, paragraph (34)(h), of the Instruction, an
``Environmental Analysis Check List'' and a ``Categorical Exclusion
Determination'' are not required for this rule.

List of Subjects in 33 CFR Part 100

    Marine safety, Navigation (water), Reporting and recordkeeping
requirements, and Waterways.

Words of Issuance and Regulatory Text

0
For the reasons discussed in the preamble, the Coast Guard amends 33
CFR part 100 as follows:

PART 100--SAFETY OF LIFE ON NAVIGABLE WATERS

0
1. The authority citation for part 100 continues to read as follows:

    Authority: 33 U.S.C. 1233.

0
2. Add a temporary Sec.  100.35-T05-018 to read as follows:

Sec.  100.35-T05-018,  Western Branch, Elizabeth River, Portsmouth, VA.

    (a) Regulated area includes all waters of the Western Branch,
Elizabeth River bounded by a line connecting the following points:
latitude 36[deg]50'06'' N, longitude 076[deg]22'27'' W, thence to
latitude 36[deg]50'06'' N, longitude 076[deg]21'57'' W, thence to
latitude 36[deg]50'15'' N, longitude 076[deg] 21'55.8'' W, thence to
latitude 36[deg]50'15'' N, longitude 076[deg]22'27'' W, thence to point
of origin. All coordinates reference Datum: NAD 1983.
    (b) Definitions: (1) Coast Guard Patrol Commander means a
commissioned, warrant, or petty officer of the Coast Guard who has been
designated by the Commander, Coast Guard Sector Hampton Roads.
    (2) Official Patrol means any vessel assigned or approved by
Commander, Coast Guard Sector Hampton Roads with a commissioned,
warrant, or petty officer on board and displaying a Coast Guard ensign.
    (3) Participant includes all vessels participating in the Virginia
State Hydroplane Championship under the auspices of the Marine Event
Permit issued to the event sponsor and approved by Commander, Coast
Guard Sector Hampton Roads.
    (c) Special local regulations: (1) Except for event participants
and persons or vessels authorized by the Coast Guard Patrol Commander,
no person or vessel may enter or remain in the regulated area.
    (2) The operator of any vessel in the regulated area must:
    (i) Stop the vessel immediately when directed to do so by any
Official Patrol.
    (ii) Proceed as directed by any Official Patrol.
    (iii) When authorized to transit the regulated area, all vessels
shall proceed at the minimum speed necessary to maintain a safe course
that minimizes wake near the race course.
    (d) Enforcement period. This section will be enforced from 8 a.m.
to 6 p.m. on April 19 and 20, 2008. A notice of enforcement of this
section will be disseminated through the Fifth Coast Guard District
Local Notice to Mariners announcing the specific event date and times.
Notice will also be made via broadcast notice to mariners on VHF-FM
marine band radio channel 22 (157.1 MHz).

    Dated: March 17, 2008.
Fred M. Rosa, Jr.,
Rear Admiral, U.S. Coast Guard, Commander, Fifth Coast Guard District.
 [FR Doc. E8-6154 Filed 3-25-08; 8:45 am]

BILLING CODE 4910-15-P


[Federal Register Volume 80, Number 133 (Monday, July 13, 2015)]
[Notices]
[Pages 40113-40115]
[FR Doc No: 2015-16977]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75376; File No. SR-NYSEArca-2015-18]

Self-Regulatory Organizations; NYSE Arca, Inc.; Order Granting
Approval of Proposed Rule Change Relating to Listing and Trading Under
NYSE Arca Equities Rule 5.2(j)(3), Commentary .02 of Shares of the
Vanguard Tax-Exempt Bond Index Fund

July 7, 2015.

I. Introduction

    On April 6, 2015, NYSE Arca, Inc. (``Exchange'' or ``NYSE Arca'')
filed with the Securities and Exchange Commission (``Commission''),
pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'')\1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to
list and trade under NYSE Arca Equities Rule 5.2(j)(3), Commentary .02,
the shares (``Shares'') of the Vanguard Tax-Exempt Bond Index Fund
(``Fund''). The proposed rule change was published for comment in the
Federal Register on April 16, 2015.\3\ On May 26, 2015, the Commission
extended the time period in which to approve the proposed rule change,
disapprove the proposed rule change, or institute proceedings to
determine whether the proposed rule change should be disapproved.\4\
The Commission received no comments on the proposed rule change. This
order grants approval of the proposed rule change.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 74701 (April 10,
2015), 80 FR 20529 (``Notice'').
    \4\ See Securities Exchange Act Release No. 75042, 80 FR 31090
(June 1, 2015).
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II. Description of the Proposed Rule Change

    The Exchange proposes to list and trade Shares of the Fund under
NYSE Arca Equities Rule 5.2(j)(3), Commentary .02, which governs the
listing and trading of Investment Company Units (``Units'') based on
fixed income securities indexes. The Fund is a series of the Vanguard
Municipal Bond Funds Trust (``Trust'').\5\ The Vanguard Group, Inc.
will be the investment adviser to the Fund (``Adviser''). State Street
Bank and Trust Company will serve as custodian for the Fund. Vanguard
Marketing Corporation will be the distributor for the Shares.
---------------------------------------------------------------------------

    \5\ The Exchange represents that, on January 6, 2015, the Trust
filed a registration statement (``Registration Statement'') on Form
N-1A under the Securities Act of 1933 and the Investment Company Act
of 1940 (``1940 Act'') (File Nos. 2-57689 and 811-02687). According
to the Exchange, the Trust has obtained certain exemptive relief
from the Commission under the 1940 Act. See Investment Company Act
Release No. 27773 (April 2, 2007) (File No. 812-13336).
---------------------------------------------------------------------------

A. Principal Investments of the Fund

    According to the Exchange, the Fund will seek to track the
performance of a benchmark index that measures the investment-grade
segment of the U.S. municipal bond market, as described below. The Fund
will invest by sampling its benchmark index, meaning that it will hold
a range of securities that, in the aggregate, approximates the full
index in terms of key risk factors and other characteristics. All of
the Fund's investments will be selected through the sampling process,
and, under normal circumstances,\6\ at least 80% of the Fund's assets
will be invested in securities held in its benchmark index. Under
normal circumstances, at least 80% of the Fund's income will be exempt
from federal income taxes.
---------------------------------------------------------------------------

    \6\ According to the Exchange, term ``under normal
circumstances'' includes, but is not limited to, the absence of
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.
---------------------------------------------------------------------------

    According to the Exchange, the Fund has proposed to use the
Standard & Poor's National AMT-Free Municipal Bond Index (``Index'') as
its benchmark index.\7\ The Index includes municipal bonds from issuers
that are primarily state or local governments or agencies whose
interest is exempt from U.S. federal income taxes and the federal
alternative minimum tax (``AMT''). To be eligible for inclusion in the
Index, each bond must have a rating of at least investment-grade, as
determined by a nationally recognized statistical rating organization
(e.g., at least BBB-by Fitch Ratings, Inc.); be denominated in U.S.

dollars; and have a minimum par amount of $25 million. In addition, to
be included in the Index, each bond must have a minimum term to
maturity and/or pre-refunded or call date greater than or equal to one
calendar month. The following bond types are specifically excluded from
the Index: bonds subject to the AMT; commercial paper; derivative
securities (inverse floaters, forwards, swaps); housing bonds; insured
conduit bonds where the obligor is a for-profit institution; non-
insured conduit bonds; non-rated bonds; notes; taxable municipals;
tobacco bonds; and variable rate debt. Each bond in the Index must be a
constituent of a deal where the deal's original offering amount was at
least $100 million. Index constituents normally undergo a review and
rebalancing once a month. At each monthly rebalancing, no one issuer
can represent more than 25% of the weight of the Index, and individual
issuers that represent at least 5% of the weight of the Index cannot
account for more than 50% of the weight of the Index in the aggregate.
---------------------------------------------------------------------------

    \7\ S&P Dow Jones Indices (``S&P'') is the ``Index Provider''
with respect to the Index. According to the Exchange, the Index
Provider is not a broker-dealer or affiliated with a broker-dealer
and has implemented procedures designed to prevent the use and
dissemination of material, non-public information regarding the
Index.
---------------------------------------------------------------------------

B. Other Investments

    According to the Exchange, while under normal circumstances, at
least 80% of the Fund's assets will be invested in securities held in
its benchmark index, as described above, the Fund may invest up to 20%
of its assets in other securities and financial instruments. According
to the Exchange, examples of these other securities and financial
instruments are nonpublic, investment-grade securities, generally
referred to as 144A securities, as well as smaller public issues or
medium-term notes not included in its benchmark index because of the
small size of the issue. The Fund may invest in non-investment-grade
securities, variable and floating rate securities, exchange-traded
funds, hybrid instruments, Build America Bonds, variable-rate demand-
preferred securities issued by closed-end municipal bond funds, and
tender option bond programs. Other investments subject to the 20% limit
also include U.S. Treasury futures contracts, exchange-traded and over-
the-counter (``OTC'') options on such futures contracts, exchange-
traded and OTC fixed income options, centrally cleared and non-
centrally cleared interest rate swaps, centrally cleared and non-
centrally cleared total return swaps, and centrally cleared and non-
centrally cleared credit default swaps.

C. Investment Restrictions

    According to the Exchange, the Fund may invest in other investment
companies to the extent permitted by applicable law or Commission
exemption and consistent with Section 12(d)(1) of the 1940 Act. 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, in accordance with
Commission guidance. 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 securities.
    The Exchange states that the Fund is classified as diversified
within the meaning of the 1940 Act \8\ and that the Fund intends to
maintain the required level of diversification and otherwise conduct
its operations so as to qualify as a ``regulated investment company''
for purposes of the Internal Revenue Code of 1986.\9\
---------------------------------------------------------------------------

    \8\ The diversification standard is set forth in Section 5(b)(1)
of the 1940 Act.
    \9\ 26 U.S.C. 851.
---------------------------------------------------------------------------

D. NYSE Arca Equities Rule 5.2(j)(3)

    The Exchange submitted this proposed rule change because the Index
for the Fund does not meet all of the ``generic'' listing requirements
of Commentary .02 to NYSE Arca Equities Rule 5.2(j)(3) applicable to
the listing of Units based on fixed income securities indexes. The
Exchange represented that the Index meets all such requirements except
for those set forth in Commentary .02(a)(2).\10\ Specifically, as of
February 7, 2015, 33.69% of the weight of the Index components have a
minimum original principal amount outstanding of $100 million or more.
---------------------------------------------------------------------------

    \10\ Commentary .02(a)(2) to NYSE Arca Equities Rule 5.2(j)(3)
provides that components that in the aggregate account for at least
75% of the weight of the index or portfolio each shall have a
minimum original principal amount outstanding of $100 million or
more.
---------------------------------------------------------------------------

    Additional information regarding the Trust, the Fund, and the
Shares, including investment strategies, risks, creation and redemption
procedures, fees, portfolio holdings, distributions, and taxes, among
other things, is included in the Notice and Registration Statement, as
applicable.\11\
---------------------------------------------------------------------------

    \11\ See Notice and Registration Statement, supra notes 3 and 5,
respectively.
---------------------------------------------------------------------------

III. Discussion and Commission's Findings

    After careful review, the Commission finds that the proposed rule
change is consistent with the requirements of Section 6 of the Act \12\
and the rules and regulations thereunder applicable to a national
securities exchange.\13\ In particular, the Commission finds that the
proposal is consistent with Section 6(b)(5) of the Act,\14\ which
requires, among other things, that the Exchange's rules be designed to
promote just and equitable principles of trade, 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.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78f.
    \13\ 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).
    \14\ 17 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Commission finds that the proposal to list and trade the Shares
on the Exchange is consistent with Section 11A(a)(1)(C)(iii) of the
Act,\15\ 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. Quotation and last-
sale information for the Shares will be available via the Consolidated
Tape Association (``CTA'') high-speed line. The current value of the
Index will be widely disseminated by one or more major market data
vendors \16\ at least once per day, as required by NYSE Arca Equities
Rule 5.2(j)(3), Commentary .02(b)(ii). In addition, an Intraday
Indicative Value (``IIV'') for the Shares of the Fund will be
disseminated by one or more major market data vendors and updated at
least every 15 seconds during the Core Trading Session (9:30 a.m. to
4:00 p.m. Eastern Time).\17\ 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. The Web site for the Fund will include the
prospectus for the Fund and additional data relating to net asset

value (``NAV'') and other applicable quantitative information. The
portfolio of securities held by the Fund will also be disclosed monthly
on the Fund's Web site.
---------------------------------------------------------------------------

    \15\ 15 U.S.C. 78k-1(a)(1)(C)(iii).
    \16\ The Exchange further states that the components of the
Index and their percentage weighting will be available from major
market data vendors.
    \17\ See NYSE Arca Equities Rule 5.2(j)(3), Commentary .02(c).
According to the Exchange, several major market data vendors display
and/or make widely available IIVs taken from the CTA or other data
feeds. See Notice, supra note 3, at n.17.
---------------------------------------------------------------------------

    The Commission 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 states that the Index Provider is not a broker-dealer or
affiliated with a broker-dealer, and has implemented procedures
designed to prevent the use and dissemination of material, non-public
information regarding the Index.\18\ Prior to the commencement of
trading, the Exchange will inform its Equity Trading Permit Holders
(``ETP Holders'') in an Information Bulletin of the special
characteristics and risks associated with trading the Shares. With
respect to trading halts, if the Exchange becomes aware that the NAV is
not being disseminated to all market participants at the same time, it
will halt trading in the Shares until such time as the NAV is available
to all market participants. In addition, the Exchange may consider all
relevant factors in exercising its discretion to halt or suspend
trading in the Shares of the Fund. Trading may be halted because of
market conditions or for reasons that, in the view of the Exchange,
make trading in the Shares inadvisable. The Exchange represents that,
if the IIV or the Index value is not being disseminated as required,
the Exchange may halt trading during the day in which the interruption
to the dissemination of the IIV or Index value occurs. If the
interruption to the dissemination of the IIV or Index value persists
past the trading day in which it occurred, the Exchange will halt
trading. Moreover, trading in Shares of the Fund will be halted if the
circuit breaker parameters in NYSE Arca Equities Rule 7.12 have been
reached or because of market conditions or for reasons that, in the
view of the Exchange, make trading in the Shares inadvisable. Further,
trading in the Shares will be subject to NYSE Arca Equities Rule 7.34,
which sets forth additional circumstances under which Shares of the
Fund may be halted.
---------------------------------------------------------------------------

    \18\ See supra note 7 and accompanying text.
---------------------------------------------------------------------------

    Based on the Exchange's representations, the Commission believes
that the Index is sufficiently broad-based to deter potential
manipulation. As of February 7, 2015, 98.72% of the weight of the Index
components was composed of individual maturities that were part of an
entire municipal bond offering with a minimum original principal amount
outstanding of $100 million or more for all maturities of the offering.
In addition, the total dollar amount outstanding of issues in the Index
was approximately $2.424 billion and the average dollar amount
outstanding of issues in the Index was approximately $60 million.
Further, the Index is composed of approximately 10,015 component issues
and 969 unique issuers, and the most heavily weighted component
represents 0.27% of the weight of the Index and the five most heavily
weighted components represent 0.96% of the weight of the Index. In
addition, the average daily notional trading volume for Index
components for the period from January 2, 2014 to December 31, 2014 was
$1,272,356,609 and the sum of the notional trading volumes for the same
period was $318,089,152,147.
    In support of this proposal, the Exchange has made representations,
including:
    (1) Except for Commentary .02(a)(2) to NYSE Arca Equities Rule
5.2(j)(3), the Shares of the Fund currently satisfy all of the generic
listing standards under NYSE Arca Equities Rule 5.2(j)(3).
    (2) The initial and continued listing standards under NYSE Arca
Equities Rules 5.2(j)(3) and 5.5(g)(2) applicable to Units shall apply
to the Shares.
    (3) The Shares will comply with all other requirements applicable
to Units including, but not limited to, requirements relating to the
dissemination of key information, such as the value of the Index and
IIV, rules governing the trading of equity securities, trading hours,
trading halts, surveillance, and the Information Bulletin to ETP
Holders (each as described in more detail in the Notice and
Registration Statement, as applicable), as set forth in Exchange rules
applicable to Units and prior Commission orders approving the generic
listing rules applicable to the listing and trading of Units.
    (4) The Exchange represents that trading in the Shares will be
subject to the existing trading surveillances, administered by the
Financial Industry Regulatory Authority (``FINRA'') on behalf of the
Exchange, which are designed to detect violations of Exchange rules and
applicable federal securities laws.\19\ The Exchange represents that
these procedures are adequate to properly monitor Exchange trading of
the Shares in all trading sessions and to deter and detect violations
of Exchange rules and federal securities laws applicable to trading on
the Exchange.
---------------------------------------------------------------------------

    \19\ According to the Exchange, FINRA surveils trading on the
Exchange pursuant to a regulatory services agreement. The Exchange
is responsible for FINRA's performance under this regulatory
services agreement.
---------------------------------------------------------------------------

    (5) FINRA, on behalf of the Exchange, will communicate as needed
regarding trading in the Shares with other markets or other entities
that are members of the Intermarket Surveillance Group (``ISG''), and
FINRA may obtain trading information regarding trading in the Shares
from such markets or entities. FINRA also can access data obtained from
the Municipal Securities Rulemaking Board relating to municipal bond
trading activity for surveillance purposes in connection with trading
in the Shares. The Exchange also may obtain information regarding
trading in the Shares from markets or other entities that are members
of ISG or with which the Exchange has in place a comprehensive
surveillance sharing agreement.
    (6) For initial and continued listing of the Shares, the Trust is
required to comply with Rule 10A-3 under the Act.\20\
---------------------------------------------------------------------------

    \20\ See 17 CFR 240.10A-3.
---------------------------------------------------------------------------

    (7) The Fund generally will invest at least 80% of its assets in
the securities of the Index.
    (8) The Fund may at times invest up to 20% of its assets in other
securities and financial instruments as described in further detail in
the Notice.

This approval order is based on all of the Exchange's representations,
including those set forth above and in the Notice, and the Exchange's
description of the Fund.

    For the foregoing reasons, the Commission finds that the proposed
rule change is consistent with Section 6(b)(5) of the Act \21\ and the
rules and regulations thereunder applicable to a national securities
exchange.
---------------------------------------------------------------------------

    \21\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\22\ that the proposed rule change (SR-NYSEArca-2015-18) be, and it
hereby is, approved.
---------------------------------------------------------------------------

    \22\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\23\
---------------------------------------------------------------------------

    \23\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Brent J. Fields,
Secretary.
[FR Doc. 2015-16977 Filed 7-10-15; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 84, Number 219 (Wednesday, November 13, 2019)]
[Rules and Regulations]
[Pages 61529-61533]
[FR Doc No: 2019-24506]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2019-0582; Product Identifier 2019-NM-034-AD; Amendment
39-19769; AD 2019-21-03]
RIN 2120-AA64

Airworthiness Directives; Bombardier, Inc., Airplanes

AGENCY: Federal Aviation Administration (FAA), Department of
Transportation (DOT).

ACTION: Final rule.

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

SUMMARY: The FAA is adopting a new airworthiness directive (AD) for
certain Bombardier, Inc., Model CL-600-1A11 (600), CL-600-2A12 (601),
and CL-600-2B16 (601-3A and 601-3R Variants) airplanes. This AD was
prompted by reports of the loss of all air data system information
provided to the flightcrew, which was caused by icing at high
altitudes. This AD requires revising the existing airplane flight
manual (AFM) to provide the flightcrew with procedures for ``Unreliable
Airspeed'' that stabilize the airplane's airspeed and attitude. The FAA
is issuing this AD to address the unsafe condition on these products.

DATES: This AD is effective December 18, 2019.
    The Director of the Federal Register approved the incorporation by
reference of certain publications listed in this AD as of December 18,
2019.

ADDRESSES: For service information identified in this final rule,
contact Bombardier, Inc., 200 C[ocirc]te-Vertu Road West, Dorval,
Qu[eacute]bec H4S 2A3, Canada; North America toll-free telephone 1-866-
538-1247 or direct-dial telephone 1-514-855-2999; email
<EMAIL_ADDRESS>internet https://www.bombardier.com. You
may view this service information at the FAA, Transport Standards
Branch, 2200 South 216th St., Des Moines, WA. For information on the
availability of this material at the FAA, call<PHONE_NUMBER>. It is also
available on the internet at https://www.regulations.gov by searching
for and locating Docket No. FAA-2019-0582.

Examining the AD Docket

    You may examine the AD docket on the internet at https://www.regulations.gov by searching for and locating Docket No. FAA-2019-
0582; or in person at Docket Operations between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal holidays. The AD docket contains
this final rule,

the regulatory evaluation, any comments received, and other
information. The address for Docket Operations is U.S. Department of
Transportation, Docket Operations, M-30, West Building Ground Floor,
Room W12-140, 1200 New Jersey Avenue SE, Washington, DC 20590.

FOR FURTHER INFORMATION CONTACT: Thomas Niczky, Aerospace Engineer,
Avionics and Electrical Systems Services Section, FAA, New York ACO
Branch, 1600 Stewart Avenue, Suite 410, Westbury, NY 11590; telephone
516-228-7347; fax<PHONE_NUMBER>; email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Discussion

    Transport Canada Civil Aviation (TCCA), which is the aviation
authority for Canada, has issued Canadian AD CF-2018-36, dated December
27, 2018 (``Canadian AD CF-2018-36'') (also referred to as the
Mandatory Continuing Airworthiness Information, or ``the MCAI''), to
correct an unsafe condition for certain Bombardier, Inc., Model CL-600-
1A11 (600), CL-600-2A12 (601), and CL-600-2B16 (601-3A and 601-3R
Variants) airplanes. You may examine the MCAI in the AD docket on the
internet at https://www.regulations.gov by searching for and locating
Docket No. FAA-2019-0582.
    The FAA issued a notice of proposed rulemaking (NPRM) to amend 14
CFR part 39 by adding an AD that would apply to certain Bombardier,
Inc., Model CL-600-1A11 (600), CL-600-2A12 (601), and CL-600-2B16 (601-
3A and 601-3R Variants) airplanes. The NPRM published in the Federal
Register on August 12, 2019 (84 FR 39778). The NPRM was prompted by
reports of the loss of all air data system information provided to the
flightcrew, which was caused by icing at high altitudes. The NPRM
proposed to require revising the existing AFM to provide the flightcrew
with procedures for ``Unreliable Airspeed'' that stabilize the
airplane's airspeed and attitude. The FAA is issuing this AD to address
the loss of all air data system information provided to the flightcrew.
If not addressed, this condition may adversely affect continued safe
flight and landing. See the MCAI for additional background information.

Comments

    The FAA gave the public the opportunity to participate in
developing this final rule. The FAA received no comments on the NPRM or
on the determination of the cost to the public.

Explanation of Change to Format of Paragraph Designation References

    The FAA has revised the format the agency uses for referring to
paragraph designations throughout this AD. This change is necessary to
meet the Office of the Federal Register's drafting requirements. For
example, where the FAA previously referred to paragraphs (g)(1) and
(g)(2) of this AD, we now refer to paragraphs (g)(1) and (2) of this
AD. This change does not affect the requirements of this AD.

Conclusion

    The FAA reviewed the relevant data and determined that air safety
and the public interest require adopting this final rule as proposed,
except for minor editorial changes. The FAA has determined that these
minor changes:
     Are consistent with the intent that was proposed in the
NPRM for addressing the unsafe condition; and
     Do not add any additional burden upon the public than was
already proposed in the NPRM.

Related Service Information Under 1 CFR Part 51

    Bombardier has issued the ``Unreliable Airspeed Procedure,''
specified in Unreliable Airspeed, in the Emergency Procedures section
of the applicable AFM.
     Canadair Challenger CL-600-1A11 AFM, RAG-600-101, Issue 2,
Product Publication 600, Revision A111, dated August 31, 2018.
     Canadair Challenger CL-600-1A11 (Winglets) AFM, RAG-600-
101, Issue 2, Product Support Publication (PSP) 600-1, Revision 103,
dated August 31, 2018.
     Canadair Challenger CL-600-2A12 AFM, PSP 601-1A, Revision
120, dated August 31, 2018.
     Canadair Challenger CL-600-2A12 AFM, PSP 601-1A-1,
Revision 79, dated August 31, 2018.
     Canadair Challenger CL-600-2A12 AFM, PSP 601-1B, Revision
83, dated August 31, 2018.
     Canadair Challenger CL-600-2A12 AFM, PSP 601-1B-1,
Revision 81, dated August 31, 2018.
     Canadair Challenger CL-600-2B16 AFM, PSP 601A-1, Revision
103, dated August 31, 2018.
     Canadair Challenger CL-600-2B16 AFM, PSP 601A-1-1,
Revision 92, dated August 31, 2018.
    These documents are distinct since they apply to different airplane
models in different configurations.
    This service information is reasonably available because the
interested parties have access to it through their normal course of
business or by the means identified in the ADDRESSES section.

Costs of Compliance

    The FAA estimates that this AD affects 206 airplanes of U.S.
registry. The FAA estimates the following costs to comply with this AD:

                                      Estimated Costs for Required Actions
----------------------------------------------------------------------------------------------------------------
                                                                                Cost per       Cost on U.S.
                          Labor cost                              Parts cost        product         operators
----------------------------------------------------------------------------------------------------------------
1 work-hour x $85 per hour = $85.............................              $0              $85          $17,510
----------------------------------------------------------------------------------------------------------------

Authority for This Rulemaking

    Title 49 of the United States Code specifies the FAA's authority to
issue rules on aviation safety. Subtitle I, section 106, describes the
authority of the FAA Administrator. Subtitle VII: Aviation Programs,
describes in more detail the scope of the Agency's authority.
    The FAA is issuing this rulemaking under the authority described in
Subtitle VII, Part A, Subpart III, Section 44701: ``General
requirements.'' Under that section, Congress charges the FAA with
promoting safe flight of civil aircraft in air commerce by prescribing
regulations for practices, methods, and procedures the Administrator
finds necessary for safety in air commerce. This regulation is within
the scope of that authority because it addresses an unsafe condition
that is likely to exist or develop on products identified in this
rulemaking action.
    This AD is issued in accordance with authority delegated by the
Executive Director, Aircraft Certification Service, as authorized by
FAA Order 8000.51C. In accordance with that order, issuance of ADs is
normally a function of the Compliance and Airworthiness Division, but
during this transition period, the Executive Director has delegated the
authority to issue ADs applicable to transport category airplanes and
associated appliances to

the Director of the System Oversight Division.

Regulatory Findings

    This AD will not have federalism implications under Executive Order
13132. This AD will not have a substantial direct effect on the States,
on the relationship between the national government and the States, or
on the distribution of power and responsibilities among the various
levels of government.
    For the reasons discussed above, I certify that this AD:
    (1) Is not a ``significant regulatory action'' under Executive
Order 12866,
    (2) Will not affect intrastate aviation in Alaska, and
    (3) Will not have a significant economic impact, positive or
negative, on a substantial number of small entities under the criteria
of the Regulatory Flexibility Act.

List of Subjects in 14 CFR Part 39

    Air transportation, Aircraft, Aviation safety, Incorporation by
reference, Safety.

Adoption of the Amendment

    Accordingly, under the authority delegated to me by the
Administrator, the FAA amends 14 CFR part 39 as follows:

PART 39--AIRWORTHINESS DIRECTIVES

0
1. The authority citation for part 39 continues to read as follows:

    Authority:  49 U.S.C. 106(g), 40113, 44701.

Sec.  39.13  [Amended]

0
2. The FAA amends Sec.  39.13 by adding the following new airworthiness
directive (AD):

2019-21-03 Bombardier, Inc.: Amendment 39-19769; Docket No. FAA-
2019-0582; Product Identifier 2019-NM-034-AD.

(a) Effective Date

    This AD is effective December 18, 2019.

(b) Affected ADs

    None.

(c) Applicability

    This AD applies to Bombardier, Inc., airplanes, certificated in
any category, identified in paragraphs (c)(1) through (3) of this
AD.
    (1) Model CL-600-1A11 (600), serial numbers 1001 through 1085
inclusive.
    (2) Model CL-600-2A12 (601), serial numbers 3001 through 3066
inclusive.
    (3) Model CL-600-2B16 (601-3A and 601-3R Variants), serial
numbers 5001 through 5194 inclusive.

(d) Subject

    Air Transport Association (ATA) of America Code 34, Navigation.

(e) Reason

    This AD was prompted by reports of the loss of all air data
system information provided to the flightcrew, which was caused by
icing at high altitudes. The FAA is issuing this AD to address the
loss of all air data system information provided to the flightcrew.
If not addressed, this condition may adversely affect continued safe
flight and landing.

(f) Compliance

    Comply with this AD within the compliance times specified,
unless already done.

(g) Revision of the Airplane Flight Manual (AFM)

    Within 30 days after the effective date of this AD: Revise the
Emergency Procedures section of the existing AFM to include the
information in the ``Unreliable Airspeed Procedure,'' specified in
Unreliable Airspeed, of the applicable AFM specified in figure 1 to
paragraph (g) of this AD.
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(h) Other FAA AD Provisions

    The following provisions also apply to this AD:
    (1) Alternative Methods of Compliance (AMOCs): The Manager, New
York ACO Branch, FAA, has the authority to approve AMOCs for this
AD, if requested using the procedures found in 14 CFR 39.19. In
accordance with 14 CFR 39.19, send your request to your principal
inspector or local Flight Standards District Office, as appropriate.
If sending information directly to the manager of the certification
office, send it to ATTN: Program Manager, Continuing Operational
Safety, FAA, New York ACO Branch, 1600 Stewart Avenue, Suite 410,
Westbury, NY 11590; telephone<PHONE_NUMBER>; fax<PHONE_NUMBER>. Before
using any approved AMOC, notify your appropriate principal
inspector, or lacking a principal inspector, the manager of the
local flight standards district office/certificate holding district
office.

    (2) Contacting the Manufacturer: For any requirement in this AD
to obtain instructions from a manufacturer, the instructions must be
accomplished using a method approved by the Manager, New York ACO
Branch, FAA; or Transport Canada Civil Aviation (TCCA); or
Bombardier, Inc.'s TCCA Design Approval Organization (DAO). If
approved by the DAO, the approval must include the DAO-authorized
signature.

(i) Related Information

    (1) Refer to Mandatory Continuing Airworthiness Information
(MCAI) Canadian AD CF-2018-36, dated December 27, 2018, for related
information. This MCAI may be found in the AD docket on the internet
at http://www.regulations.gov by searching for and locating Docket
No. FAA-2019-0582.
    (2) For more information about this AD, contact Thomas Niczky,
Aerospace Engineer, Avionics and Electrical Systems Services
Section, FAA, New York ACO Branch, 1600 Stewart Avenue, Suite 410,
Westbury, NY 11590; telephone<PHONE_NUMBER>; fax<PHONE_NUMBER>; email
<EMAIL_ADDRESS>
(j) Material Incorporated by Reference

    (1) The Director of the Federal Register approved the
incorporation by reference (IBR) of the service information listed
in this paragraph under 5 U.S.C. 552(a) and 1 CFR part 51.
    (2) You must use this service information as applicable to do
the actions required by this AD, unless this AD specifies otherwise.
    (i) ``Unreliable Airspeed Procedure,'' from Unreliable Airspeed,
in the Emergency Procedures section, of the Canadair Challenger CL-
600-1A11 Airplane Flight Manual (AFM), RAG-600-101, Issue 2, Product
Publication 600, Revision A111, dated August 31, 2018.
    (ii) ``Unreliable Airspeed Procedure,'' from Unreliable
Airspeed, in the Emergency Procedures section, of the Canadair
Challenger CL-600-1A11 (Winglets) AFM, RAG-600-101, Issue 2, Product
Support Publication (PSP) 600-1, Revision 103, dated August 31,
2018.
    (iii) ``Unreliable Airspeed Procedure,'' from Unreliable
Airspeed, in the Emergency Procedures section, of the Canadair
Challenger CL-600-2A12 AFM, PSP 601-1A, Revision 120, dated August
31, 2018.
    (iv) ``Unreliable Airspeed Procedure,'' from Unreliable
Airspeed, in the Emergency Procedures section, of the Canadair
Challenger CL-600-2A12 AFM, PSP 601-1A-1, Revision 79, dated August
31, 2018.
    (v) ``Unreliable Airspeed Procedure,'' from Unreliable Airspeed,
in the Emergency Procedures section, of the Canadair Challenger CL-
600-2A12 AFM, PSP 601-1B, Revision 83, dated August 31, 2018.
    (vi) ``Unreliable Airspeed Procedure,'' from Unreliable
Airspeed, in the Emergency Procedures section, of the Canadair
Challenger CL-600-2A12 AFM, PSP 601-1B-1, Revision 81, dated August
31, 2018.
    (vii) ``Unreliable Airspeed Procedure,'' from Unreliable
Airspeed, in the Emergency Procedures section, of the Canadair
Challenger CL-600-2B16 AFM, PSP 601A-1, Revision 103, dated August
31, 2018.
    (viii) ``Unreliable Airspeed Procedure,'' from Unreliable
Airspeed, in the Emergency Procedures section, of the Canadair
Challenger CL-600-2B16 AFM, PSP 601A- 1-1, Revision 92, dated August
31, 2018.
    (3) For service information identified in this AD, contact
Bombardier, Inc., 200 C[ocirc]te-Vertu Road West, Dorval,
Qu[eacute]bec H4S 2A3, Canada; North America toll-free telephone 1-
866-538-1247 or direct-dial telephone 1-514-855-2999; email
<EMAIL_ADDRESS>internet https://www.bombardier.com.
    (4) You may view this service information at the FAA, Transport
Standards Branch, 2200 South 216th St., Des Moines, WA. For
information on the availability of this material at the FAA, call
206-231-3195.
    (5) You may view this service information that is incorporated
by reference at the National Archives and Records Administration
(NARA). For information on the availability of this material at
NARA, email<EMAIL_ADDRESS>or go to: https://www.archives.gov/federal-register/cfr/ibr-locations.html.

    Issued in Des Moines, Washington, on October 18, 2019.
Michael Kaszycki,
Acting Director, System Oversight Division, Aircraft Certification
Service.
[FR Doc. 2019-24506 Filed 11-12-19; 8:45 am]
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