[Federal Register Volume 88, Number 142 (Wednesday, July 26, 2023)]
[Rules and Regulations]
[Pages 48070-48072]
[FR Doc No: 2023-15743]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 71

[Docket No. FAA-2023-1020; Airspace Docket No. 21-AEA-31]
RIN 2120-AA66

Establishment of Area Navigation (RNAV) Routes; Eastern United
States

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

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SUMMARY: This action amends one and establishes three low altitude
United States Area Navigation (RNAV) routes. The purpose of the new
RNAV routes is to expand the availability of the enroute structure and
provide additional RNAV routing within the National Airspace System
(NAS) in support of transitioning it from ground-based to satellite-
based navigation.

DATES: Effective date 0901 UTC, October 5, 2023. The Director of the
Federal Register approves this incorporation by reference action under
1 CFR part 51, subject to the annual revision of FAA Order JO 7400.11
and publication of conforming amendments.

ADDRESSES: A copy of the Notice of Proposed Rulemaking (NPRM), all
comments received, this final rule, and all background material may be
viewed online at www.regulations.gov using the FAA Docket number.
Electronic retrieval help and guidelines are available on the website.
It is available 24 hours each day, 365 days each year.
    FAA Order JO 7400.11G, Airspace Designations and Reporting Points,
and subsequent amendments can be viewed online at www.faa.gov/air_traffic/publications/. You may also contact the Rules and
Regulations Group, Office of Policy, Federal Aviation Administration,
800 Independence Avenue SW, Washington, DC 20591; telephone: (202) 267-
8783.

FOR FURTHER INFORMATION CONTACT: Brian Vidis, Rules and Regulations
Group, Office of Policy, Federal Aviation Administration, 800
Independence Avenue SW, Washington, DC 20591; telephone: (202) 267-
8783.

SUPPLEMENTARY INFORMATION:

Authority for This Rulemaking

    The FAA's authority to issue rules regarding aviation safety is
found in Title 49 of the United States Code. 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. This rulemaking is promulgated under the authority described
in Subtitle VII, Part A, Subpart I, Section 40103. Under that section,
the FAA is charged with prescribing regulations to assign the use of
the airspace necessary to ensure the safety of aircraft and the
efficient use of airspace. This regulation is within the scope of that
authority as it would expand the availability of RNAV in the eastern
United States and improve the efficient flow of air traffic within the
NAS by lessening the dependency on ground-based navigation.

History

    The FAA published a notice of proposed rulemaking for Docket No.
FAA-2023-1020 in the Federal Register (88 FR 29559; May 8, 2023),
proposing to amend one and establish three low-altitude RNAV routes in
support of transitioning the NAS from a ground-based to a satellite-
based navigation. Interested parties were invited to participate in
this rulemaking effort by submitting written comments on the proposal
to the FAA. No comments were received.

Differences From the NPRM

    In the NPRM's description of RNAV route T-452, the FAA incorrectly
listed the VINSE, PA; BADDI, PA; JOANE, PA; and GEERI, PA route points
as waypoints (WP). The route points are actually identified as Fixes in
the National Airspace System Resource (NASR) database and charted as
Fixes accordingly. This action corrects the error and changes the route
points to be listed as Fixes.
    Additionally, in the NPRM's description of RNAV route T-456, the
FAA incorrectly listed the DELRO, PA, route point as a WP instead of
Fix. This action also corrects the DELRO, PA, route point to be listed
as a Fix.

Incorporation by Reference

    United States Area Navigation Routes are published in paragraph
6011 of FAA Order JO 7400.11, Airspace Designations and Reporting
Points, which is incorporated by reference in 14 CFR 71.1 on an annual
basis. This document amends the current version of that order, FAA
Order JO 7400.11G, dated August 19, 2022, and effective September 15,
2022. FAA Order JO 7400.11G is publicly available as listed in the
ADDRESSES section of this document. These amendments will be published
in the next update to FAA Order JO 7400.11.
    FAA Order JO 7400.11G lists Class A, B, C, D, and E airspace areas,
air traffic service routes, and reporting points.

The Rule

    This action amends 14 CFR part 71 by amending one and establishing
three low altitude RNAV T-routes in the northeast United States in
support of transitioning from ground-based navigation aids to
satellite-based navigation. The routes are described below.
    T-299: Prior to this final rule, T-299 extended from the UCREK, VA,
WP to the SCAPE, PA, WP. This action extends T-299 to the southwest
from the Montebello, VA (MOL), Very High Frequency (VHF)
Omnidirectional Range/Distance Measuring Equipment (VOR/DME) 279[deg]
radial at 5.5 nautical miles (OBEPE, VA, Fix) to the UCREK, VA, WP, and
to the northeast to the intersection of the Harrisburg, PA (HAR), VOR/
Tactical Air Navigation (VORTAC) 235[deg] radial and the Westminster,
MD (EMI), VORTAC 324[deg] radial (SCAPE, PA, Fix) to the Albany, NY
(ALB), VORTAC. The route overlays VOR Federal airway V-377 from the
SCAPE, PA, Fix to the Harrisburg, PA (HAR), VORTAC; VOR Federal airway
V-162 from the Harrisburg, PA (HAR), VORTAC to the Huguenot, NY (HUO),
VOR/DME; and VOR Federal airway V-489 from the Huguenot, NY (HOU), VOR/
DME to the Albany, NY (ALB), VORTAC.
    T-452: T-452 is a new route that extends from the VINSE, PA, Fix to
the REESY, PA, WP. The route is replacing VOR Federal airway V-469 from
the St. Thomas, VA (THS), VORTAC to the

JOANE, PA, Fix. The VINSE, PA, WP is being used to replace the St.
Thomas, VA (THS), VORTAC.
    T-456: T-456 is a new route that extends from the VINSE, PA, Fix to
the Modena, PA (MXE), VORTAC. The route overlays VOR Federal airway V-
474 from the AMISH, PA, Fix to the Modena, PA (MXE), VORTAC.
    T-477: T-477 is a new route that extends from the CPTAL, MD, WP to
the Philipsburg, PA (PSB), VORTAC. The route overlays VOR Federal
Airway V-501 from the Hagerstown, MD (HGR), VOR to the Philipsburg, PA
(PSB), VORTAC.

Regulatory Notices and Analyses

    The FAA has determined that this regulation only involves an
established body of technical regulations for which frequent and
routine amendments are necessary to keep them operationally current.
It, therefore: (1) is not a ``significant regulatory action'' under
Executive Order 12866; (2) is not a ``significant rule'' under DOT
Regulatory Policies and Procedures (44 FR 11034; February 26, 1979);
and (3) does not warrant preparation of a regulatory evaluation as the
anticipated impact is so minimal. Since this is a routine matter that
only affects air traffic procedures and air navigation, it is certified
that this rule, when promulgated, does not have a significant economic
impact on a substantial number of small entities under the criteria of
the Regulatory Flexibility Act.

Environmental Review

    The FAA has determined that this action of establishing RNAV routes
T-452, T-456, and T-477, and the amendment of T-299 in the eastern
United States to provide additional RNAV routing within the NAS in
support of transitioning it from ground-based to satellite-based
navigation, qualifies for categorical exclusion under the National
Environmental Policy Act (42 U.S.C. 4321 et seq.) and its implementing
regulations at 40 CFR part 1500, and in accordance with FAA Order
1050.1F, ``Environmental Impacts: Policies and Procedures,'' paragraph
5-6.5.a, which categorically excludes from further environmental impact
review rulemaking actions that designate or modify classes of airspace
areas, airways, routes, and reporting points (see 14 CFR part 71,
Designation of Class A, B, C, D, and E Airspace Areas; Air Traffic
Service Routes; and Reporting Points); and paragraph 5-6.5b, which
categorically excludes from further environmental impact review
``Actions regarding establishment of jet routes and Federal airways
(see 14 CFR 71.15, Designation of jet routes and VOR Federal airways).
. .''. As such, this airspace action is not expected to cause any
potentially significant environmental impacts. In accordance with FAA
Order 1050.1F, paragraph 5-2 regarding Extraordinary Circumstances, the
FAA has reviewed this action for factors and circumstances in which a
normally categorically excluded action may have a significant
environmental impact requiring further analysis. The FAA has determined
that no extraordinary circumstances exist that warrant preparation of
an environmental assessment or environmental impact study.

Lists of Subjects in 14 CFR Part 71

    Airspace, Incorporation by reference, Navigation (air).

The Amendment

    In consideration of the foregoing, the Federal Aviation
Administration amends 14 CFR part 71 as follows:

PART 71--DESIGNATION OF CLASS A, B, C, D, AND E AIRSPACE AREAS; AIR
TRAFFIC SERVICE ROUTES; AND REPORTING POINTS

0
1. The authority citation for 14 CFR part 71 continues to read as
follows:

    Authority: 49 U.S.C. 106(f), 106(g), 40103, 40113, 40120; E.O.
10854, 24 FR 9565, 3 CFR, 1959-1963 Comp., p.389.

Sec.  71.1  [Amended]

0
2. The incorporation by reference in 14 CFR 71.1 of FAA Order JO
7400.11G, Airspace Designations and Reporting Points, dated August 19,
2022, and effective September 15, 2022, is amended as follows:

Paragraph 6011 United States Area Navigation Routes.

* * * * *

T-299 OBEPE, VA to Albany, NY (ALB) [Amended]

OBEPE, VA                                       FIX                            (Lat. 37[deg]54'23.03'' N, long. 079[deg]13'21.04'' W)
UCREK, VA                                       WP                             (Lat. 38[deg]01'33.17'' N, long. 079[deg]02'56.23'' W)
KAIJE, VA                                       WP                             (Lat. 38[deg]44'34.79'' N, long. 078[deg]42'48.47'' W)
BAMMY, WV                                       WP                             (Lat. 39[deg]24'33.13'' N, long. 078[deg]25'45.64'' W)
REEES, PA                                       WP                             (Lat. 39[deg]47'51.75'' N, long. 077[deg]45'56.31'' W)
SCAPE, PA                                       FIX                            (Lat. 39[deg]56'41.76'' N, long. 077[deg]32'12.33'' W)
Harrisburg, PA (HAR)                            VORTAC                         (Lat. 40[deg]18'08.06'' N, long. 077[deg]04'10.41'' W)
BOBSS, PA                                       FIX                            (Lat. 40[deg]17'41.78'' N, long. 076[deg]45'00.73'' W)
East Texas, PA (ETX)                            VOR/DME                        (Lat. 40[deg]34'51.74'' N, long. 075[deg]41'02.51'' W)
Allentown, PA (FJC)                             VORTAC                         (Lat. 40[deg]43'36.07'' N, long. 075[deg]27'17.08'' W)
Huguenot, NY (HUO)                              VOR/DME                        (Lat. 41[deg]24'34.87'' N, long. 074[deg]35'29.74'' W)
WEARD, NY                                       FIX                            (Lat. 41[deg]45'43.63'' N, long. 074[deg]31'30.07'' W)
Albany, NY (ALB)                                VORTAC                         (Lat. 42[deg]44'50.21'' N, long. 073[deg]48'11.46'' W)

* * * * *

T-452 VINSE, PA to REESY, PA [New]

VINSE, PA                                       FIX                            (Lat. 39[deg]58'16.21'' N, long. 077[deg]57'21.20'' W)
BADDI, PA                                       FIX                            (Lat. 40[deg]09'26.26'' N, long. 077[deg]25'07.81'' W)
Harrisburg, PA (HAR)                            VORTAC                         (Lat. 40[deg]18'08.06'' N, long. 077[deg]04'10.41'' W)
JOANE, PA                                       FIX                            (Lat. 40[deg]02'38.48'' N, long. 076[deg]27'21.40'' W)
GEERI, PA                                       FIX                            (Lat. 39[deg]56'59.70'' N, long. 076[deg]17'38.99'' W)
REESY, PA                                       WP                             (Lat. 39[deg]45'27.94'' N, long. 075[deg]52'07.09'' W)

* * * * *

T-456 VINSE, PA to Modena, PA (MXE) [New]

VINSE, PA                                       FIX                            (Lat. 39[deg]58'16.21'' N, long. 077[deg]57'21.20'' W)
AMISH, PA                                       FIX                            (Lat. 39[deg]56'33.12'' N, long. 077[deg]37'34.13'' W)
DELRO, PA                                       FIX                            (Lat. 39[deg]57'55.71'' N, long. 076[deg]37'31.24'' W)

Modena, PA (MXE)                                VORTAC                         (Lat. 39[deg]55'04.98'' N, long. 075[deg]40'14.96'' W)

* * * * *

T-477 CPTAL, MD to Philipsburg, PA (PSB) [New]

CPTAL, MD                                       WP                             (Lat. 39[deg]32'16.02'' N, long. 077[deg]41'55.65'' W)
Hagerstown, MD (HGR)                            VOR                            (Lat. 39[deg]41'51.82'' N, long. 077[deg]51'20.59'' W)
VINSE, PA                                       FIX                            (Lat. 39[deg]58'16.21'' N, long. 077[deg]57'21.20'' W)
Philipsburg, PA (PSB)                           VORTAC                         (Lat. 40[deg]54'58.53'' N, long. 077[deg]59'33.78'' W)

* * * * *

    Issued in Washington, DC, on July 20, 2023.
Karen L. Chiodini,
Acting Manager, Rules and Regulations Group.
[FR Doc. 2023-15743 Filed 7-25-23; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register Volume 81, Number 48 (Friday, March 11, 2016)]
[Notices]
[Pages 12990-12996]
[FR Doc No: 2016-05432]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-77301; File No. SR-NASDAQ-2016-028]

Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing of Proposed Rule Change Relating to the Listing and
Trading of the Shares of the iSectors Post-MPT Growth ETF of ETFis
Series Trust I

March 7, 2016.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on February 23, 2016, The NASDAQ Stock Market LLC (``Nasdaq'' or the
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in in Items I
and II below, which Items have been prepared by Nasdaq. 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

    Nasdaq proposes to list and trade the shares of the iSectors Post-
MPT Growth ETF (the ``Fund''), a series of ETFis Series Trust I (the
``Trust''), under Nasdaq Rule 5735 (``Managed Fund Shares'').\3\ The
shares of the Fund are collectively referred to herein as the
``Shares.''
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    \3\ The Commission approved Nasdaq Rule 5735 in Securities
Exchange Act Release No. 57962 (June 13, 2008) 73 FR 35175 (June 20,
2008) (SR-NASDAQ-2008-039). There are already multiple actively-
managed funds listed on the Exchange; see e.g., Securities Exchange
Act Release No. 72411 (June 17, 2014), 79 FR 35598 (June 23, 2014)
(SR-NASDAQ-2014-40) (order approving listing and trading of Calamos
Focus Growth ETF). The Exchange believes the proposed rule change
raises no significant issues not previously addressed in those prior
Commission orders. The Exchange believes the proposed rule change
raises no significant issues not previously addressed in those prior
Commission orders.
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II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, Nasdaq included statements
concerning the purpose of, and basis for, the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. Nasdaq has prepared summaries, set forth in Sections A,
B, and C below, of the most significant aspects of such statements.

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

1. Purpose
    The Exchange proposes to list and trade the Shares of the Fund
under Nasdaq Rule 5735, which governs the listing and trading of
Managed Fund Shares \4\ on the Exchange. The Fund will be an actively
managed exchange-traded fund (``ETF''). The Shares will be offered by
the Trust, which was established as a Delaware statutory trust on
September 20, 2012.\5\ The Trust is registered with the Commission as
an investment company and has filed a registration statement on Form N-
1A (``Registration Statement'') with the Commission.\6\ The Fund is a
series of the Trust.
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    \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)(the ``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 Index Fund Shares, listed
and traded on the Exchange under Nasdaq Rule 5705, 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.
    \5\ The Commission has issued an order, upon which the Trust may
rely, granting certain exemptive relief under the 1940 Act. See
Investment Company Act Release No. 30607 (July 23, 2013). In
compliance with Nasdaq Rule 5735(b)(5), which applies to Managed
Fund Shares based on an international or global portfolio, the
Trust's application for exemptive relief under the 1940 Act states
that the Fund will comply with the federal securities laws in
accepting securities for deposits and satisfying redemptions with
redemption securities, including that the securities accepted for
deposits and the securities used to satisfy redemption requests are
sold in transactions that would be exempt from registration under
the Securities Act of 1933 (15 U.S.C. 77a).
    \6\ See Registration Statement on Form N-1A for the Trust filed
on December 2, 2015 (File Nos. 333-187668 and 811-22819). The
descriptions of the Fund and the Shares contained herein are based,
in part, on information in the Registration Statement.
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    Virtus ETF Advisers LLC will be the investment adviser
(``Adviser'') to the Fund. iSectors, LLC will be the investment sub-
adviser (``Sub-Adviser'') to the Fund. ETF Distributors LLC (the
``Distributor'') will be the principal underwriter and distributor of
the Fund's Shares. The Bank of New York Mellon (``BNY Mellon'') will
act as the administrator, accounting agent, custodian, and transfer
agent to the Fund.
    Paragraph (g) of Rule 5735 provides that if the investment adviser
to the investment company issuing Managed Fund Shares is affiliated
with a broker-dealer, such investment adviser shall erect a ``fire
wall'' between the investment adviser and the broker-dealer with
respect to access to information concerning the composition and/or
changes to such investment company portfolio.\7\ In addition, paragraph
(g) further requires that personnel who make decisions on the open-end
fund's portfolio composition must be subject to procedures designed to
prevent the use and dissemination of material, non-public information
regarding the open-end fund's portfolio. Rule 5735(g) is similar to
Nasdaq Rule 5705(b)(5)(A)(i); however, paragraph (g) in connection with
the establishment of a ``fire wall'' between the investment adviser and
the broker-dealer reflects the applicable open-end fund's portfolio,
not an underlying benchmark index, as is the case with index-based
funds. The Adviser and Sub-Adviser are not registered as broker-
dealers; however the Adviser (but not the Sub-Adviser) is affiliated
with a broker-dealer and has implemented a fire wall with respect to
such broker-dealer

regarding access to information concerning the composition and/or
changes to the portfolio.
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    \7\ An investment adviser to an open-end fund is required to be
registered under the Investment Advisers Act of 1940 (the ``Advisers
Act''). As a result, the Adviser, the Sub-Adviser and their 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.
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    In addition, personnel who make decisions on the Fund's portfolio
composition will be subject to procedures designed to prevent the use
and dissemination of material non-public information regarding the
portfolio. In the event (a) the Adviser or the Sub-Adviser registers as
a broker dealer or becomes newly affiliated with a broker-dealer, or
(b) any new adviser or sub-adviser is a registered broker-dealer or
becomes affiliated with another broker-dealer, it will implement a fire
wall with respect to its relevant personnel and/or such broker-dealer
affiliate, as applicable, regarding access to information concerning
the composition and/or changes to the portfolio and will be subject to
procedures designed to prevent the use and dissemination of material
non-public information regarding such portfolio.
iSectors Post MPT Growth ETF
Principal Investments
    The Fund's investment objective will be to provide growth of
capital, with a secondary emphasis on capital preservation, independent
of individual market conditions. The Fund will be an actively managed
ETF that seeks to achieve its investment objective by utilizing a long-
only, tactically-managed exposure to sectors of the U.S. equity market
and U.S. fixed income markets. To obtain such exposure, the Sub-Adviser
will invest, under normal market conditions,\8\ the Fund's assets in
ETFs,\9\ exchange-traded notes (``ETNs''),\10\ exchange-traded trusts
that hold commodities (``ETTs'') (collectively, ETFs, ETNs and ETTs are
referred to hereinafter as ``exchange-traded products'' or
``ETPs''),\11\ individually selected U.S. exchange-traded common stocks
(when the Sub-Adviser determines that is more efficient or otherwise
advantageous to do so), money market funds, U.S. treasuries \12\ or
money market instruments. To the extent that the Fund invests in ETPs
or money market funds to gain domestic exposure, the Fund is
considered, in part, a ``fund of funds.''
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    \8\ The term ``under normal market conditions'' as used herein
includes, but is not limited to, the absence of adverse market,
economic, political or other conditions, including extreme
volatility or trading halts in the equity and 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. For temporary
defensive purposes, during the initial invest-up period and during
periods of high cash inflows or outflows, the Fund may depart from
its principal investment strategies; for example, it may hold a
higher than normal proportion of its assets in cash. During such
periods, the Fund may not be able to achieve its investment
objective. The Fund may adopt a defensive strategy when the Adviser
believes securities in which the Fund normally invests have elevated
risks due to political or economic factors and in other
extraordinary circumstances.
    \9\ As described in the Registration Statement, an ETF is an
investment company registered under the 1940 Act that holds a
portfolio of securities. Many ETFs are designed to track the
performance of a securities index, including industry, sector,
country and region indexes. ETFs included in the Fund will be listed
and traded in the U.S. on registered exchanges. The Fund may invest
in the securities of ETFs in excess of the limits imposed under the
1940 Act pursuant to exemptive orders obtained by other ETFs and
their sponsors from the Commission. The ETFs in which the Fund may
invest include Index Fund Shares (as described in Nasdaq Rule 5705),
Portfolio Depositary Receipts (as described in Nasdaq Rule 5705),
and Managed Fund Shares (as described in Nasdaq Rule 5735). The Fund
may invest in leveraged ETFs (e.g., 2X or 3X), but will not invest
in inverse or inverse leveraged ETFs (e.g., -1X or -2X). No more
than 25% of the Fund's holdings will be invested in leveraged ETFs.
The shares of ETFs in which a Fund may invest will be limited to
securities that trade in markets that are members of the ISG, which
includes all U.S. national securities exchanges, or are parties to a
comprehensive surveillance sharing agreement with the Exchange.
    \10\ The ETNs are limited to those described in Nasdaq Rule
5710.
    \11\ The Fund may invest in the following ETPs: trust
certificates, commodity-based trust shares, currency trust shares,
commodity index trust shares, commodity futures trust shares,
partnership units, trust units, and managed trust securities (as
described in Nasdaq Rule 5711); paired class shares (as described in
Nasdaq Rule 5713); trust issued receipts (as described in Nasdaq
Rule 5720); and exchange-traded managed fund shares (as described in
Nasdaq Rule 5745).
    \12\ Such securities will include securities that are issued or
guaranteed by the U.S. Treasury, by various agencies of the U.S.
government, or by various instrumentalities, which have been
established or sponsored by the U.S. government. U.S. Treasury
obligations are backed by the ``full faith and credit'' of the U.S.
government. Securities issued or guaranteed by federal agencies and
U.S. government-sponsored instrumentalities may or may not be backed
by the full faith and credit of the U.S. government.
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Other Investments
    In order to seek its investment objective, the Fund will not employ
other strategies outside of the above-described ``Principal
Investments.''
Investment Restrictions
    Under normal market conditions, the Fund will invest its total
assets in shares of ETPs, individually selected U.S. exchange-traded
common stocks (when the Sub-Adviser determines that is more efficient
or otherwise advantageous to do so), money market funds, U.S.
treasuries or money market instruments. The Fund will not purchase
securities of open-end investment companies except in compliance with
the 1940 Act. The Fund will not use derivative instruments, including
options, swaps, forwards and futures contracts. The Fund will not
invest in inverse or leveraged inverse ETPs.\13\
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    \13\ See supra note 9.
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    The Fund may hold up to an aggregate amount of 15% of its net
assets in illiquid securities and other illiquid assets (calculated at
the time of investment). 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 or other illiquid assets. Illiquid securities and
other 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.\14\
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    \14\ The Commission has stated that long-standing Commission
guidelines have required open-end funds to hold no more than 15% of
their net assets in illiquid securities and other illiquid assets.
See Investment Company Act Release No. 28193 (March 11, 2008), 73 FR
14618 (March 18, 2008), FN 34. See also Investment Company Act
Release No. 5847 (October 21, 1969), 35 FR 19989 (December 31, 1970)
(Statement Regarding ``Restricted Securities''); and Investment
Company Act Release No. 18612 (March 12, 1992), 57 FR 9828 (March
20, 1992) (Revisions of Guidelines to Form N-1A). A fund's portfolio
security is illiquid if it cannot be disposed of in the ordinary
course of business within seven days at approximately the value
ascribed to it by the fund. See Investment Company Act Release No.
14983 (March 12, 1986), 51 FR 9773 (March 21, 1986) (adopting
amendments to Rule 2a-7 under the 1940 Act); and Investment Company
Act Release No. 17452 (April 23, 1990), 55 FR 17933 (April 30, 1990)
(adopting Rule 144A under the Securities Act of 1933).
---------------------------------------------------------------------------

    The Fund intends to qualify for and to elect to be treated as a
separate regulated investment company under SubChapter M of the
Internal Revenue Code.\15\
---------------------------------------------------------------------------

    \15\ 26 U.S.C. 851.
---------------------------------------------------------------------------

    Under the 1940 Act, the Fund's investment in investment companies
will be limited to, subject to certain exceptions: (i) 3% of the total
outstanding voting stock of any one investment company, (ii) 5% of the
Fund's total assets with respect to any one investment company, and
(iii) 10% of the Fund's total assets with respect to investment
companies in the aggregate.
    The Fund's investments will be consistent with its investment
objective. The Fund does not presently intend to engage in any form of
borrowing for investment purposes, and will not be operated as a
``leveraged ETF'', i.e., it

will not be operated in a manner designed to seek a multiple of the
performance of an underlying reference index.
Net Asset Value
    The Fund's net asset value (``NAV'') will be determined as of the
close of trading (normally 4:00 p.m., Eastern time (``E.T.'')) on each
day the New York Stock Exchange (``NYSE'') is open for business. NAV
will be calculated for the Fund by taking the market price of the
Fund's total assets, including interest or dividends accrued but not
yet collected, less all liabilities, and dividing such amount by the
total number of Shares outstanding. The result, rounded to the nearest
cent, will be the NAV per Share. All valuations will be subject to
review by the Trust's Board (``Board'') or its delegate.
    The Fund's investments will be valued at market value (i.e., the
price at which a security is trading and could presumably be purchased
or sold) or, in the absence of market value with respect to any
investment, at fair value in accordance with valuation procedures
adopted by the Board and in accordance with the 1940 Act. Common stocks
and equity securities (including shares of ETPs) will be valued at the
last sales price on that exchange. Portfolio securities traded on more
than one securities exchange will be valued at the last sale price or,
if so disseminated by an exchange, the official closing price, as
applicable, at the close of the exchange representing the principal
exchange or market for such securities on the business day as of which
such value is being determined. U.S. treasuries are valued using quoted
market prices, and money market funds are valued at the net asset value
reported by the funds. Money market instruments will typically be
valued using information provided by a third party pricing service. For
all security types in which the Fund may invest, the Fund's primary
pricing source is Interactive Data Corp.; its secondary source is
Reuters; and its tertiary source is Bloomberg.
    Certain securities may not be able to be priced by pre-established
pricing methods. Such securities may be valued by the Board or its
delegate at fair value. The use of fair value pricing by the Fund will
be governed by valuation procedures adopted by the Board and in
accordance with the provisions of the 1940 Act. As a general principle,
the current ``fair value'' of a security would appear to be the amount
which the owner might reasonably expect to receive for the security
upon its current sale. The use of fair value prices by the Fund
generally results in the prices used by the Fund that may differ from
current market quotations or official closing prices on the applicable
exchange. A variety of factors may be considered in determining the
fair value of such securities.
Creation and Redemption of Shares
    The Trust will issue and sell Shares of the Fund only in Creation
Unit aggregations in exchange for an in-kind portfolio of securities
and/or cash in lieu of such securities, and only in aggregations of
50,000 Shares, on a continuous basis through the Distributor, without a
sales load, at the NAV next determined after receipt, on any business
day, of an order in proper form.
    The consideration for purchase of Creation Unit aggregations of the
Fund will consist of (i) a designated portfolio of securities
determined by the Adviser that generally will conform to the holdings
of the Fund consistent with its investment objective (the ``Deposit
Securities'') per each Creation Unit aggregation and generally an
amount of cash (the ``Cash Component'') computed as described below, or
(ii) cash in lieu of all or a portion of the Deposit Securities, as
defined below. Together, the Deposit Securities and the Cash Component
(including the cash in lieu amount) will constitute the ``Fund
Deposit,'' which will represent the minimum initial and subsequent
investment amount for a Creation Unit aggregation of the Fund.
    The consideration for redemption of Creation Unit aggregations of
the Fund will consist of (i) a designated portfolio of securities
determined by the Adviser that generally will conform to the holdings
of the Fund consistent with its investment objective per each Creation
Unit aggregation (``Fund Securities'') and generally a Cash Component,
as described below, or (ii) cash in lieu of all or a portion of the
Fund Securities as defined below.
    The Cash Component is sometimes also referred to as the Balancing
Amount. The Cash Component will serve the function of compensating for
any differences between the NAV per Creation Unit aggregation and the
Deposit Amount (as defined below). For example, for a creation the Cash
Component will be an amount equal to the difference between the NAV of
Fund Shares (per Creation Unit aggregation) and the ``Deposit
Amount''--an amount equal to the market value of the Deposit Securities
and/or cash in lieu of all or a portion of the Deposit Securities. If
the Cash Component is a positive number (i.e., the NAV per Creation
Unit aggregation exceeds the Deposit Amount), the Authorized
Participant (defined below) will deliver the Cash Component. If the
Cash Component is a negative number (i.e., the NAV per Creation Unit
aggregation is less than the Deposit Amount), the Authorized
Participant will receive the Cash Component.
    BNY Mellon, through the National Securities Clearing Corporation
(``NSCC''), will make available on each business day, prior to the
opening of business of the Exchange (currently 9:30 a.m., E.T.), the
list of the names and the quantity of each Deposit Security to be
included in the current Fund Deposit (based on information at the end
of the previous business day). Such Fund Deposit will be applicable,
subject to any adjustments as described below, in order to effect
creations of Creation Unit aggregations of the Fund until such time as
the next-announced composition of the Deposit Securities is made
available. BNY Mellon, through the NSCC, will also make available on
each business day, prior to the opening of business of the Exchange
(currently 9:30 a.m., E.T.), the list of the names and the quantity of
each security to be included (based on information at the end of the
previous business day), subject to any adjustments as described below,
in order to affect redemptions of Creation Unit aggregations of the
Fund until such time as the next-announced composition of the Fund
Securities is made available.
    The Trust will reserve the right to permit or require the
substitution of an amount of cash, i.e., a ``cash in lieu'' amount, to
be added to the Cash Component to replace any Deposit Security that may
not be available in sufficient quantity for delivery or which might not
be eligible for trading by an Authorized Participant or the investor
for which it is acting or other relevant reason. To the extent the
Trust effects the redemption of Shares in cash, such transactions will
be effected in the same manner for all Authorized Participants.
    In addition to the list of names and numbers of securities
constituting the current Deposit Securities of a Fund Deposit, BNY
Mellon, through the NSCC, will also make available on each business
day, the estimated Cash Component, effective through and including the
previous business day, per Creation Unit aggregation of the Fund.
    To be eligible to place orders with respect to creations and
redemptions of Creation Units, an entity must be (i) a ``Participating
Party,'' i.e., a broker-dealer or other participant in the clearing
process through the continuous net settlement system of the NSCC or
(ii)

a Depository Trust Company (``DTC'') Participant (a ``DTC
Participant''). In addition, each Participating Party or DTC
Participant (each, an ``Authorized Participant'') must execute an
agreement that has been agreed to by the Distributor and BNY Mellon
with respect to purchases and redemptions of Creation Units.
    All orders to create Creation Unit aggregations must be received by
the Distributor no later than 3:00 p.m., E.T., an hour earlier than the
closing time of the regular trading session on the Exchange (ordinarily
4:00 p.m., E.T.), in each case on the date such order is placed in
order for creations of Creation Unit aggregations to be effected based
on the NAV of Shares of the Fund as next determined on such date after
receipt of the order in proper form.
    In order to redeem Creation Units of the Fund, an Authorized
Participant must submit an order to redeem for one or more Creation
Units. All such orders must be received by the Distributor in proper
form no later than 3:00 p.m., E.T., an hour earlier than the close of
regular trading on the Exchange (ordinarily 4:00 p.m., E.T.), in order
to receive that day's closing NAV per Share.
Availability of Information
    The Fund's Web site (www.isectorsetfs.com), which will be publicly
available prior to the public offering of Shares, will include a form
of the prospectus for the Fund that may be downloaded. The Web site
will include the Fund's ticker, CUSIP and exchange information along
with additional quantitative information updated on a daily basis,
including, for the Fund: (1) Daily trading volume, the prior business
day's reported NAV and closing price, mid-point of the bid/ask spread
at the time of calculation of such NAV (the ``Bid/Ask Price'') \16\ and
a calculation of the premium and discount of the Bid/Ask Price against
the NAV; and (2) data in chart format displaying the frequency
distribution of discounts and premiums of the daily Bid/Ask Price
against the NAV, within appropriate ranges, for each of the four
previous calendar quarters. On each business day, before commencement
of trading in Shares in the Regular Market Session \17\ on the
Exchange, the Fund will disclose on its Web site the identities and
quantities of the portfolio of securities and other assets (the
``Disclosed Portfolio'' as defined in Nasdaq Rule 5735(c)(2)) held by
the Fund that will form the basis for the Fund's calculation of NAV at
the end of the business day.\18\
---------------------------------------------------------------------------

    \16\ The Bid/Ask Price of the Fund will be determined using the
midpoint of the highest bid and the lowest offer on the Exchange as
of the time of calculation of the Fund's NAV. The records relating
to Bid/Ask Prices will be retained by the Fund and its service
providers.
    \17\ See Nasdaq Rule 4120(b)(4) (describing the three trading
sessions on the Exchange: (1) Pre-Market Session from 4 a.m. to 9:30
a.m. E.T.; (2) Regular Market Session from 9:30 a.m. to 4 p.m. or
4:15 p.m. E.T.; and (3) Post-Market Session from 4 p.m. or 4:15 p.m.
to 8 p.m. E.T.).
    \18\ Under accounting procedures to be followed by the Fund,
trades made on the prior business day (``T'') will be booked and
reflected in NAV on the current business day (``T+1'').
Notwithstanding the foregoing, portfolio trades that are executed
prior to the opening of the Exchange on any business day may be
booked and reflected in NAV on such business day. Accordingly, the
Fund will be able to disclose at the beginning of the business day
the portfolio that will form the basis for the NAV calculation at
the end of the business day.
---------------------------------------------------------------------------

    On a daily basis, the Fund will disclose for each portfolio
security and other asset of the Fund the following information on the
Fund's Web site (if applicable): Ticker symbol, CUSIP number or other
identifier, if any; a description of the holding (including the type of
holding); the identity of the security, commodity, index, or other
asset or instrument underlying the holding, if any; maturity date, if
any; coupon rate, if any; effective date, if any; market value of the
holding; and the percentage weighting of the holdings in the Fund's
portfolio. The Web site information will be publicly available at no
charge.
    In addition, for the Fund, an estimated value, defined in Rule
5735(c)(3) as the ``Intraday Indicative Value,'' that reflects an
estimated intraday value of the Fund's portfolio, will be disseminated.
Moreover, the Intraday Indicative Value, available on the NASDAQ OMX
Information LLC proprietary index data service \19\ will be based upon
the current value for the components of the Disclosed Portfolio and
will be updated and widely disseminated by one or more major market
data vendors and broadly displayed at least every 15 seconds during the
Regular Market Session. The dissemination of the Intraday Indicative
Value, together with the Disclosed Portfolio, will allow investors to
determine the value of the underlying portfolio of the Fund on a daily
basis and will provide a close estimate of that value throughout the
trading day.
---------------------------------------------------------------------------

    \19\ Currently, the Nasdaq Global Index Data Service (``GIDS'')
is the Nasdaq global index data feed service, offering real-time
updates, daily summary messages, and access to widely followed
indexes and Intraday Indicative Values for ETFs. GIDS provides
investment professionals with the daily information needed to track
or trade NASDAQ OMX indexes, listed ETFs, or third-party partner
indexes and ETFs.
---------------------------------------------------------------------------

    Price information regarding the ETPs, equity securities, U.S.
treasuries, money market instruments and money market funds held by the
Fund will be available through the U.S. exchanges trading such assets,
in the case of exchange-traded securities, as well as automated
quotation systems, published or other public sources, or on-line
information services such as Bloomberg or Reuters. For all security
types in which the Fund may invest, the Fund's primary pricing source
is Interactive Data Corp.; its secondary source is Reuters; and its
tertiary source is Bloomberg.
    Intra-day price information for all assets held by the Fund will
also be available through subscription services, such as Bloomberg,
Markit and Thomson Reuters, which can be accessed by Authorized
Participants and other investors.
    Investors will also be able to obtain the Fund's Statement of
Additional Information (``SAI''), the Fund's Shareholder Reports, and
its Form N-CSR and Form N-SAR, filed twice a year. The Fund's SAI and
Shareholder Reports will be available free upon request from the Fund,
and those documents and the Form N-CSR and Form N-SAR may be viewed on-
screen or downloaded from the Commission's Web site at www.sec.gov.
Information regarding market price and volume of the Shares will be
continually available on a real-time basis throughout the day on
brokers' computer screens and other electronic services. The previous
day's closing price and trading volume information for the Shares will
be published daily in the financial section of newspapers. Quotation
and last sale information for the Shares and any underlying exchange-
traded products will be available via Nasdaq proprietary quote and
trade services, as well as in accordance with the Unlisted Trading
Privileges and the Consolidated Tape Association plans for the Shares.
    Additional information regarding the Fund and the Shares, including
investment strategies, risks, creation and redemption procedures, fees,
Fund holdings disclosure policies, distributions and taxes will be
included in the Registration Statement.
Initial and Continued Listing
    The Shares will be subject to Rule 5735, which sets forth the
initial and continued listing criteria applicable to Managed Fund
Shares. The Exchange represents that, for initial and/or continued
listing, the Fund must be in compliance with Rule 10A-3 \20\ under

the Act. A minimum of 100,000 Shares will be outstanding at the
commencement of trading on the Exchange. The Exchange will obtain a
representation from the issuer of the Shares that the NAV per Share
will be calculated daily and that the NAV and the Disclosed Portfolio
will be made available to all market participants at the same time.
---------------------------------------------------------------------------

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

Trading Halts
    With respect to trading halts, the Exchange may consider all
relevant factors in exercising its discretion to halt or suspend
trading in the Shares of the Fund. Nasdaq will halt trading in the
Shares under the conditions specified in Nasdaq Rules 4120 and 4121,
including the trading pauses under Nasdaq Rules 4120(a)(11) and (12).
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 other assets constituting 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. Trading in the Shares also will be subject to Rule
5735(d)(2)(D), which sets forth circumstances under which Shares of the
Fund may be halted.
Trading Rules
    Nasdaq deems the Shares to be equity securities, thus rendering
trading in the Shares subject to Nasdaq's existing rules governing the
trading of equity securities. Nasdaq will allow trading in the Shares
from 4:00 a.m. until 8:00 p.m. E.T. The Exchange has appropriate rules
to facilitate transactions in the Shares during all trading sessions.
As provided in Nasdaq Rule 5735(b)(3), the minimum price variation for
quoting and entry of orders in Managed Fund Shares traded on the
Exchange is $0.01.
Surveillance
    The Exchange represents that trading in the Shares will be subject
to the existing trading surveillances, administered by both Nasdaq and
also 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.\21\ 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 applicable federal securities
laws.
---------------------------------------------------------------------------

    \21\ 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.
---------------------------------------------------------------------------

    The surveillances referred to above generally focus on detecting
securities trading outside their normal patterns, which could be
indicative of manipulative or other violative activity. When such
situations are detected, surveillance analysis follows and
investigations are opened, where appropriate, to review the behavior of
all relevant parties for all relevant trading violations.
    FINRA, on behalf of the Exchange, will communicate as needed
regarding trading in the Shares and other exchange-traded securities
and instruments, including the common stock and shares held by the Fund
with other markets and other entities that are members of the
Intermarket Surveillance Group (``ISG'') \22\ and FINRA may obtain
trading information regarding trading in the Shares and such exchange-
traded securities and instruments held by the Fund from such markets
and other entities. In addition, the Exchange may obtain information
regarding trading in the Shares and such exchange-traded securities and
instruments held by the Fund from markets and other entities that are
members of ISG,\23\ or with which the Exchange has in place a
comprehensive surveillance sharing agreement. The Fund's net assets
that are invested in exchange-traded equities, including ETPs and
common stock, will be invested in securities that trade in markets that
are members of ISG or are parties to a comprehensive surveillance
sharing agreement with the Exchange. Moreover, FINRA, on behalf of the
Exchange, will be able to access, as needed, trade information for
certain fixed-income securities held by the Fund reported to FINRA's
Trade Reporting and Compliance Engine (``TRACE'').
---------------------------------------------------------------------------

    \22\ For a list of the current members of ISG, see
www.isgportal.org. The Exchange notes that not all components of the
Disclosed Portfolio may trade on markets that are members of ISG or
with which the Exchange has in place a comprehensive surveillance
sharing agreement.
    \23\ Id.
---------------------------------------------------------------------------

    In addition, the Exchange also has a general policy prohibiting the
distribution of material, non-public information by its employees.
Information Circular
    Prior to the commencement of trading, the Exchange will inform its
members in an Information Circular of the special characteristics and
risks associated with trading the Shares. Specifically, the Information
Circular will discuss the following: (1) The procedures for purchases
and redemptions of Shares in Creation Units (and that Shares are not
individually redeemable); (2) Nasdaq Rule 2111A, which imposes
suitability obligations on Nasdaq members with respect to recommending
transactions in the Shares to customers; (3) how information regarding
the Intraday Indicative Value and Disclosed Portfolio is disseminated;
(4) the risks involved in trading the Shares during the Pre-Market and
Post-Market Sessions when an updated Intraday Indicative Value will not
be calculated or publicly disseminated; (5) the requirement that
members deliver a prospectus to investors purchasing newly issued
Shares prior to or concurrently with the confirmation of a transaction;
and (6) trading information.
    In addition, the Information Circular will advise members, prior to
the commencement of trading, of the prospectus delivery requirements
applicable to the Fund. Members purchasing Shares from the Fund for
resale to investors will deliver a prospectus to such investors. The
Information Circular will also discuss any exemptive, no-action and
interpretive relief granted by the Commission from any rules under the
Act.
    Additionally, the Information Circular will reference that the Fund
is subject to various fees and expenses described in the Registration
Statement. The Information Circular will also disclose the trading
hours of the Shares of the Fund and the applicable NAV calculation time
for the Shares. The Information Circular will disclose that information
about the Shares of the Fund will be publicly available on the Fund's
Web site.
2. Statutory Basis
    Nasdaq believes that the proposal is consistent with Section 6(b)
of the Act in general and Section 6(b)(5) of the Act in particular in
that it is designed to prevent fraudulent and manipulative acts and
practices, to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in facilitating
transactions in securities, and to remove impediments to and perfect
the mechanism of a free and open market and in general, to protect
investors and the public interest.
    The Exchange believes that the proposed rule change is designed to
prevent fraudulent and manipulative acts and practices in that the
Shares will be listed and traded on the Exchange

pursuant to the initial and continued listing criteria in Nasdaq Rule
5735. The Exchange represents that trading in the Shares will be
subject to the existing trading surveillances, administered by both
Nasdaq and FINRA on behalf of the Exchange, which are designed to
detect violations of Exchange rules and applicable federal securities
laws. In addition, paragraph (g) of Nasdaq Rule 5735 further requires
that personnel who make decisions on the open-end fund's portfolio
composition must be subject to procedures designed to prevent the use
and dissemination of material, non-public information regarding the
open-end fund's portfolio. The Fund's investments will be consistent
with the Fund's investment objective. FINRA may obtain information via
ISG from other exchanges that are members of ISG. In addition, the
Exchange may obtain information regarding trading in the Shares and
other exchange-traded securities and instruments held by the Fund from
markets and other entities that are members of ISG, which includes all
U.S. and some foreign securities and futures exchanges, or with which
the Exchange has in place a comprehensive surveillance sharing
agreement. Moreover, FINRA, on behalf of the Exchange, will be able to
access, as needed, trade information for certain fixed-income
securities held by the Fund reported to FINRA's TRACE.
    The Fund may invest up to an aggregate amount of 15% of its net
assets in illiquid assets (calculated at the time of investment). The
proposed rule change is designed to promote just and equitable
principles of trade and to protect investors and the public interest in
that the Exchange will obtain a representation from the issuer of the
Shares that the NAV per Share will be calculated daily and that the NAV
and the Disclosed Portfolio will be made available to all market
participants at the same time. In addition, a large amount of
information will be publicly available regarding the Fund and the
Shares, thereby promoting market transparency. Moreover, the Intraday
Indicative Value, available on the NASDAQ OMX Information LLC
proprietary index data service will be widely disseminated by one or
more major market data vendors at least every 15 seconds during the
Regular Market Session. On each business day, before commencement of
trading in Shares in the Regular Market Session on the Exchange, the
Fund will disclose on its Web site the Disclosed Portfolio of the Fund
that will form the basis for the Fund's calculation of NAV at the end
of the business day. 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, and quotation and last sale information for the Shares will
be available via Nasdaq proprietary quote and trade services, as well
as in accordance with the Unlisted Trading Privileges and the
Consolidated Tape Association plans for the Shares and any underlying
exchange-traded securities. Intra-day price information will be
available through subscription services, such as Bloomberg, Markit and
Thomson Reuters, which can be accessed by Authorized Participants and
other investors.
    The Fund's Web site will include a form of the prospectus for the
Fund and additional data relating to NAV and other applicable
quantitative information. Trading in Shares of the Fund will be halted
under the conditions specified in Nasdaq Rules 4120 and 4121 or because
of market conditions or for reasons that, in the view of the Exchange,
make trading in the Shares inadvisable, and trading in the Shares will
be subject to Nasdaq Rule 5735(d)(2)(D), which sets forth circumstances
under which Shares of the Fund may be halted. In addition, as noted
above, investors will have ready access to information regarding the
Fund's holdings, the Intraday 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 in that it will facilitate the listing and trading of
an additional type of actively-managed exchange-traded product that
will enhance competition among market participants, to the benefit of
investors and the marketplace. As noted above, FINRA, on behalf of the
Exchange, will communicate as needed regarding trading in the Shares
and other exchange-traded securities and instruments held by the Fund
with other markets and other entities that are members of the ISG and
FINRA may obtain trading information regarding trading in the Shares
and other exchange-traded securities and instruments held by the Fund
from such markets and other entities. In addition, the Exchange may
obtain information regarding trading in the Shares and other exchange-
traded securities and instruments held by the Fund from markets and
other entities that are members of ISG, which includes all U.S. and
some foreign securities and futures exchanges, or with which the
Exchange has in place a comprehensive surveillance sharing agreement.
Furthermore, as noted above, investors will have ready access to
information regarding the Fund's holdings, the Intraday Indicative
Value, the Disclosed Portfolio, and quotation and last sale information
for the Shares.
    For the above reasons, Nasdaq believes the proposed rule change is
consistent with the requirements of Section 6(b)(5) of the Act.

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

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

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

    Written comments were neither solicited nor received.

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

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

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or

     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-NASDAQ-2016-028 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NASDAQ-2016-028. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site http://www.sec.gov/rules/sro.shtml.
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for Web site viewing and printing in
the Commission's Public Reference Room, 100 F Street NE., Washington,
DC 20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of Nasdaq. 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-NASDAQ-2016-028 and should be submitted
on or before April 1, 2016.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\24\
Robert W. Errett,
Deputy Secretary.
---------------------------------------------------------------------------

    \24\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

[FR Doc. 2016-05432 Filed 3-10-16; 8:45 am]
 BILLING CODE 8011-01-P


From: Thomas Andersen<EMAIL_ADDRESS>
Sent: Friday, August 01, 2014 10:50 AM
To: Howard, Jodi
Cc: Bouchard, Andrew; Huser, Jennifer; Kaleri, Cynthia; Dewees, Jason; Johnson, Steffan; Myers,
Jason; Fritz, Wesley; David Blye; David Gratson; James Bell; Becky Lopez
Subject: RE: 2014 PVC Section 114 - Process Vents
Importance: High

Jodi and Andrew,

In response to your request, Shintech has prepared a draft test  protocol  for your review and
approval.  We are scheduled to begin testing on August 11, 2014.  Please recall, that we have SCR
technology at the Plaquemine facility.  As a result, we will conduct our 30 day THC testing before and
after our SCR.

Jodi – Per our conversation yesterday, please let me know when we can discuss the protocol with you
and Steffan next week.

Thank you and have a nice weekend!

Thomas S. Andersen
Environmental Manager
Shintech, Inc.
5618 East Hwy 332
Freeport, TX 77541
979 233 7861 ext 398
979 236 5641 (c)

From: Howard, Jodi<EMAIL_ADDRESS>
Sent: Friday, May 16, 2014 9:23 AM
To: Thomas Andersen
Cc: Bouchard, Andrew; Huser, Jennifer; Kaleri, Cynthia; Dewees, Jason; Johnson, Steffan; Kataoka, Mark;
Lassiter, Penny; Mia, Marcia; Tim Gilder; James Bell
Subject: 2014 PVC Section 114 - Process Vents

Tom,

Attached to this email are the PVC Section 114 Process Vent documents for Shintech’s Plaquemine
facility. The Section 114 responses are due November 17, 2014. The following people will be able to
address any questions that you may have.

PVC Section 114:  Andrew Bouchard<EMAIL_ADDRESS>919-541-4036
Test Methods: Jason DeWees<EMAIL_ADDRESS>919-541- 9742 or Stef Johnson,
<EMAIL_ADDRESS>919-541-4790
Test Plans: Cynthia Kaleri<EMAIL_ADDRESS>;<PHONE_NUMBER>
Alternative Test Methods: Robin Segall<EMAIL_ADDRESS>919-541-0893

Please cc: Andrew and I on any communications that you send to the people listed.

Thanks.

Jodi L. Howard
US EPA
OAR/OAQPS/SPPD/RCG
E143-01
Research Triangle Park, NC 27711
(919) 541-4607