[Federal Register Volume 76, Number 137 (Monday, July 18, 2011)]
[Notices]
[Pages 42123-42124]
[FR Doc No: 2011-17990]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

Notice of Staff Attendance at Southwest Power Pool Regional
Entity Trustee, Regional State Committee and Board of Directors
Meetings

    The Federal Energy Regulatory Commission (Commission) hereby gives
notice that members of its staff may attend the meetings of the
Southwest Power Pool, Inc. (SPP) Regional Entity Trustee (RE), Regional
State Committee (RSC) and Board of Directors, as noted below. Their
attendance is part of the Commission's ongoing outreach efforts.
    All meetings will be held at the Kansas City Marriott Country Club
Plaza, 4445 Main Street, Kansas City, MO 64111. The hotel phone number
is<PHONE_NUMBER>.

SPP RE

    July 25, 2011 (8:30 a.m.-2 p.m.).

SPP RSC

    July 25, 2011 (1-5 p.m.).

SPP Board of Directors

    July 26, 2011 (8 a.m.-3 p.m.).
    The discussions may address matters at issue in the following
proceedings:

Docket No. ER06-451, Southwest Power Pool, Inc.
Docket No. ER08-1419, Southwest Power Pool, Inc.
Docket No. ER09-659, Southwest Power Pool, Inc.
Docket No. ER09-1050, Southwest Power Pool, Inc.
Docket No. ER10-696, Southwest Power Pool, Inc.
Docket No. ER10-941, Southwest Power Pool, Inc.
Docket No. ER10-1069, Southwest Power Pool, Inc.
Docket No. ER10-1254, Southwest Power Pool, Inc.
Docket No. ER10-1269, Southwest Power Pool, Inc.
Docket No. ER10-1697, Southwest Power Pool, Inc.
Docket No. ER10-2244, Southwest Power Pool, Inc.
Docket No. ER11-2528, Southwest Power Pool, Inc.
Docket No. ER11-2711, Southwest Power Pool, Inc.
Docket No. ER11-2719, Southwest Power Pool, Inc.
Docket No. ER11-2725, Southwest Power Pool, Inc.
Docket No. ER11-2736, Southwest Power Pool, Inc.
Docket No. ER11-2758, Southwest Power Pool, Inc.
Docket No. ER11-2781, Southwest Power Pool, Inc.
Docket No. ER11-2783, Southwest Power Pool, Inc.
Docket No. ER11-2787, Southwest Power Pool, Inc.
Docket No. ER11-2828, Southwest Power Pool, Inc.
Docket No. ER11-2837, Southwest Power Pool, Inc.
Docket No. ER11-2861, Southwest Power Pool, Inc.
Docket No. ER11-2881, Southwest Power Pool, Inc.
Docket No. ER11-2916, Southwest Power Pool, Inc.
Docket No. ER11-3025, Southwest Power Pool, Inc.
Docket No. ER11-3065, Southwest Power Pool, Inc.
Docket No. ER11-3073, Southwest Power Pool, Inc.
Docket No. ER11-3130, Southwest Power Pool, Inc.
Docket No. ER11-3133, Southwest Power Pool, Inc.
Docket No. ER11-3154, Southwest Power Pool, Inc.
Docket No. ER11-3159, Southwest Power Pool, Inc.
Docket No. ER11-3230, Southwest Power Pool, Inc.
Docket No. ER11-3299, Southwest Power Pool, Inc.
Docket No. ER11-3331, Southwest Power Pool, Inc.
Docket No. ER11-3838, Southwest Power Pool, Inc.
Docket No. ER11-3601, Southwest Power Pool, Inc.
Docket No. ER11-3622, Southwest Power Pool, Inc.
Docket No. ER11-3627, Southwest Power Pool, Inc.
Docket No. ER11-3650, Southwest Power Pool, Inc.
Docket No. ER11-3665, Southwest Power Pool, Inc.
Docket No. ER11-3666, Southwest Power Pool, Inc.
Docket No. ER11-3672, Southwest Power Pool, Inc.
Docket No. ER11-3710, Southwest Power Pool, Inc.
Docket No. ER11-3776, Southwest Power Pool, Inc.
Docket No. ER11-3877, Southwest Power Pool, Inc.
Docket No. ER11-3952, Southwest Power Pool, Inc.
Docket No. ER11-3958, Southwest Power Pool, Inc.
Docket No. ER11-3967, Southwest Power Pool, Inc.
Docket No. ER11-3728, Midwest Independent System Operator, Inc.
Docket No. EL11-34, Midwest Independent System Operator, Inc.

    These meetings are open to the public.
    For more information, contact Patrick Clarey, Office of Energy
Market Regulation, Federal Energy Regulatory Commission at (317) 249-
5937 or<EMAIL_ADDRESS>
    Dated: July 12, 2011.
Kimberly D. Bose,
Secretary.
[FR Doc. 2011-17990 Filed 7-15-11; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 79, Number 37 (Tuesday, February 25, 2014)]
[Notices]
[Pages 10584-10591]
[FR Doc No: 2014-03972]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-71572; File No. SR-NASDAQ-2014-019]

Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing of Proposed Rule Change Relating to the Listing and
Trading of Shares of the First Trust Managed Municipal Fund of First
Trust Exchange-Traded Fund III

February 19, 2014.
    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 7, 2014, 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,
II, and III 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 First Trust
Managed Municipal ETF (the ``Fund'') of First Trust Exchange-Traded
Fund III (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 Nos. 69464 (April 26, 2013), 78 FR 25774 (May 2, 2013)
(SR-NASDAQ-2013-036) (order approving listing and trading of First
Trust Senior Loan Fund); 68972 (February 22, 2013), 78 FR 13721
(February 28, 2013) (SR-NASDAQ-2012-147) (order approving listing
and trading of First Trust High Yield Long/Short ETF); 66489
(February 29, 2012), 77 FR 13379 (March 6, 2012) (SR-NASDAQ-2012-
004) (order approving listing and trading of WisdomTree Emerging
Markets Corporate Bond Fund). Additionally, the Commission has
previously approved the listing and trading of a number of actively-
managed funds on NYSE Arca, Inc. pursuant to Rule 8.600 of that
exchange. See, e.g., Securities Exchange Act Release Nos. 68870
(February 8, 2013), 78 FR 11245 (February 15, 2013) (SR-NYSEArca-
2012-139) (order approving listing and trading of First Trust
Preferred Securities and Income ETF); 64643 (June 10, 2011), 76 FR
35062 (June 15, 2011) (SR-NYSEArca-2011-21) (order approving listing
and trading of WisdomTree Global Real Return Fund). The Exchange
believes the proposed rule change raises no significant issues not
previously addressed in those prior Commission orders.
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    The text of the proposed rule change is available at http://nasdaq.cchwallstreet.com/, at Nasdaq's principal office, 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, 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
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 Massachusetts business trust on
January 9, 2008.\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 will be 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. 30029 (April 10, 2012) (File No.
812-13795) (the ``Exemptive Relief''). In addition, on December 6,
2012, the staff of the Commission's Division of Investment
Management (``Division'') issued a no-action letter (``No-Action
Letter'') relating to the use of derivatives by actively-managed
ETFs. See No-Action Letter dated December 6, 2012 from Elizabeth G.
Osterman, Associate Director, Office of Exemptive Applications,
Division of Investment Management. The No-Action Letter stated that
the Division would not recommend enforcement action to the
Commission under applicable provisions of and rules under the 1940
Act if actively-managed ETFs operating in reliance on specified
orders (which include the Exemptive Relief) invest in options
contracts, futures contracts or swap agreements provided that they
comply with certain representations stated in the No-Action Letter.
    \6\ See Post-Effective Amendment No. 2 to Registration Statement
on Form N-1A for the Trust, dated December 20, 2013 (File Nos. 333-
176976 and 811-22245). The descriptions of the Fund and the Shares
contained herein are based, in part, on information in the
Registration Statement.
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    First Trust Advisors L.P. will be the investment adviser
(``Adviser'') to the Fund. First Trust Portfolios L.P. (the
``Distributor'') will be the principal underwriter and distributor of
the Fund's Shares. Brown Brothers Harriman & Co. (``BBH'') 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 is not a broker-dealer, but it is
affiliated with the Distributor, a broker-dealer, and has implemented a
fire wall with respect to its broker-dealer affiliate regarding access
to information concerning the composition and/or changes to the
portfolio. 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 Fund's portfolio. In the event (a) the Adviser or any 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 a 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. The Fund
currently does not intend to use a sub-adviser.
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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 and its related personnel are
subject to the provisions of Rule 204A-1 under the Advisers Act
relating to codes of ethics. This Rule requires investment advisers
to adopt a code of ethics that reflects the fiduciary nature of the
relationship to clients as well as compliance with other applicable
securities laws. Accordingly, procedures designed to prevent the
communication and misuse of non-public information by an investment
adviser must be consistent with Rule 204A-1 under the Advisers Act.
In addition, Rule 206(4)-7 under the Advisers Act makes it unlawful
for an investment adviser to provide investment advice to clients
unless such investment adviser has (i) adopted and implemented
written policies and procedures reasonably designed to prevent
violation, by the investment adviser and its supervised persons, of
the Advisers Act and the Commission rules adopted thereunder; (ii)
implemented, at a minimum, an annual review regarding the adequacy
of the policies and procedures established pursuant to subparagraph
(i) above and the effectiveness of their implementation; and (iii)
designated an individual (who is a supervised person) responsible
for administering the policies and procedures adopted under
subparagraph (i) above.
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First Trust Managed Municipal ETF
Principal Investments
    The primary investment objective of the Fund will be to generate
current income that is exempt from regular federal income taxes and its
secondary objective will be long-term capital appreciation. Under
normal market conditions,\8\ the Fund will seek to achieve its
investment objectives by investing at least 80% of its net assets
(including investment borrowings) in municipal debt securities that pay
interest that is exempt from regular federal income taxes
(collectively, ``Municipal Securities'').\9\ Municipal Securities are
generally issued by or on behalf of states, territories or possessions
of the U.S. and the District of Columbia and their political
subdivisions, agencies, authorities and other instrumentalities. The
types of Municipal Securities in which the Fund may invest include
municipal lease obligations (and certificates of participation in such
obligations), municipal general obligation bonds, municipal revenue
bonds, municipal notes, municipal cash equivalents, private activity
bonds (including without limitation industrial development bonds), and
pre-refunded \10\ and escrowed to maturity bonds. In addition,
Municipal Securities include securities issued by entities whose
underlying assets are municipal bonds (for example, tender option bond
(TOB) trusts and custodial receipts trusts). The Fund may invest in
Municipal Securities of any maturity.
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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 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 and invest part or all of its
assets in short-term debt securities, money market funds and other
cash equivalents, or it may hold cash. (See ``Other Investments''
below.) During such periods, the Fund may not be able to achieve its
investment objectives. 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\ Assuming compliance with the investment requirements and
limitations described herein (including the 10% limitation on
distressed Municipal Securities described below), the Fund may
invest up to 100% of its net assets in Municipal Securities that pay
interest that generates income subject to the federal alternative
minimum tax.
    \10\ A pre-refunded municipal bond is a municipal bond that has
been refunded to a call date on or before the final maturity of
principal and remains outstanding in the municipal market. The
payment of principal and interest of the pre-refunded municipal
bonds held by the Fund will be funded from securities in a
designated escrow account that holds U.S. Treasury securities or
other obligations of the U.S. government (including its agencies and
instrumentalities). As the payment of principal and interest is
generated from securities held in a designated escrow account, the
pledge of the municipality has been fulfilled and the original
pledge of revenue by the municipality is no longer in place. The
escrow account securities pledged to pay the principal and interest
of the pre-refunded municipal bond do not guarantee the price
movement of the bond before maturity. Investment in pre-refunded
municipal bonds held by the Fund may subject the Fund to interest
rate risk, market risk and credit risk. In addition, while a
secondary market exists for pre-refunded municipal bonds, if the
Fund sells pre-refunded municipal bonds prior to maturity, the price
received may be more or less than the original cost, depending on
market conditions at the time of sale.
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    The Fund will invest at least 65% of its net assets in investment
grade securities, which are securities that are rated at the time of
investment in one of the four highest credit quality categories by at
least one nationally recognized statistical rating organization rating
that security or, if unrated, determined by the Adviser to be of
comparable quality.\11\ The Fund will consider pre-refunded or escrowed
to maturity bonds, regardless of rating, to be investment grade
securities. The Fund may invest up to 35% of its net assets in
securities that are, at the time of investment, rated below investment
grade (or securities that are unrated and determined by the Adviser to
be of comparable quality), commonly referred to as ``high yield'' or
``junk'' bonds. If, subsequent to purchase by the Fund, a security held
by the Fund experiences a decline in credit quality and falls below
investment grade, the Fund may continue to hold the security and it
will not count toward the 35% investment limitation.
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    \11\ Comparable quality of unrated securities will be determined
by the Adviser based on fundamental credit analysis of the unrated
security and comparable rated securities. On a best efforts basis,
the Adviser will attempt to make a rating determination based on
publicly available data. In making a ``comparable quality''
determination, the Adviser may consider, for example, whether the
issuer of the security has issued other rated securities, the nature
and provisions of the relevant security, whether the obligations
under the relevant security are guaranteed by another entity and the
rating of such guarantor (if any), relevant cash flows,
macroeconomic analysis, and/or sector or industry analysis.
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Investments in Derivatives
    To pursue its investment objectives, the Fund may invest in
interest rate swaps,\12\ options, exchange-listed options on futures
contracts, futures contracts and forward contracts. The use of these
derivative transactions may allow the Fund to obtain net long or short
exposures to selected interest rates or durations and/or to gain
exposure to Municipal Securities. These derivatives may also be used to
hedge risks, including interest rate risks and credit risks, associated
with the Fund's other portfolio investments.
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    \12\ To the extent practicable, the Fund will invest in swaps
cleared through the facilities of a centralized clearing house.
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    The Fund generally expects that no more than 20% of the value of
the Fund's net assets will be invested in

derivative instruments; however, there will be no limitation on the
Fund's investments in derivative instruments to be used by the Fund
solely for hedging purposes.\13\ The Fund will only enter into
transactions in derivative instruments with counterparties that the
Adviser reasonably believes are capable of performing under the
applicable contract.\14\ The Fund's investments in derivative
instruments will be consistent with the Fund's investment objectives
and the 1940 Act and will not be used to seek to achieve a multiple or
inverse multiple of an index.
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    \13\ The Fund will limit its direct investments in futures,
options on futures and swaps to the extent necessary for the Adviser
to claim the exclusion from regulation as a ``commodity pool
operator'' with respect to the Fund under Rule 4.5 promulgated by
the Commodity Futures Trading Commission (``CFTC''), as such rule
may be amended from time to time. Under Rule 4.5 as currently in
effect, the Fund will limit its trading activity in futures, options
on futures and swaps (excluding activity for ``bona fide hedging
purposes,'' as defined by the CFTC) such that it will meet one of
the following tests: (i) Aggregate initial margin and premiums
required to establish its futures, options on futures and swap
positions will not exceed 5% of the liquidation value of the Fund's
portfolio, after taking into account unrealized profits and losses
on such positions; or (ii) aggregate net notional value of its
futures, options on futures and swap positions will not exceed 100%
of the liquidation value of the Fund's portfolio, after taking into
account unrealized profits and losses on such positions.
    \14\ The Fund will seek, where possible, to use counterparties,
as applicable, whose financial status is such that the risk of
default is reduced; however, the risk of losses resulting from
default is still possible. The Adviser will evaluate the
creditworthiness of counterparties on an ongoing basis. In addition
to information provided by credit agencies, the Adviser's analysis
will evaluate each approved counterparty using various methods of
analysis and may consider the Adviser's past experience with the
counterparty, its known disciplinary history and its share of market
participation.
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Other Investments
    Under normal market conditions, the Fund will invest substantially
all of its assets to meet its investment objectives as described above.
In addition, the Fund may invest its assets as generally described
below.
    The Fund may invest up to 10% of its net assets in taxable
municipal securities. In addition, the Fund may invest up to 10% of its
net assets in distressed Municipal Securities.\15\ The Fund may also
invest up to 10% of its net assets in short-term debt securities, money
market funds and other cash equivalents, or it may hold cash. The
percentage of the Fund invested in such holdings will vary and will
depend on several factors, including market conditions.
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    \15\ Distressed Municipal Securities are Municipal Securities
that are currently in default and not expected to pay the current
coupon. If, subsequent to purchase by the Fund, a Municipal Security
held by the Fund becomes distressed, the Fund may continue to hold
the Municipal Security and it will not count toward the 10% limit.
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    Short-term debt securities, which do not include Municipal
Securities, are securities from issuers having a long-term debt rating
of at least A by Standard & Poor's Ratings Services, a Division of The
McGraw-Hill Companies, Inc. (``S&P Ratings''), Moody's Investors
Service, Inc. (``Moody's'') or Fitch Ratings (``Fitch'') and having a
maturity of one year or less. The use of temporary investments will not
be a part of a principal investment strategy of the Fund.
    Short-term debt securities are defined to include, without
limitation, the following: (1) Fixed rate and floating rate U.S.
government securities, including bills, notes and bonds differing as to
maturity and rates of interest, which are either issued or guaranteed
by the U.S. Treasury or by U.S. government agencies or
instrumentalities; (2) certificates of deposit issued against funds
deposited in a bank or savings and loan association; (3) bankers'
acceptances, which are short-term credit instruments used to finance
commercial transactions; (4) repurchase agreements,\16\ which involve
purchases of debt securities; (5) bank time deposits, which are monies
kept on deposit with banks or savings and loan associations for a
stated period of time at a fixed rate of interest; and (6) commercial
paper, which is short-term unsecured promissory notes. The Fund may
only invest in commercial paper rated A-1 or higher by S&P Ratings,
Prime-1 or higher by Moody's or F1 or higher by Fitch.
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    \16\ The Fund intends to enter into repurchase agreements only
with financial institutions and dealers believed by the Adviser to
present minimal credit risks in accordance with criteria approved by
the Board of Trustees of the Trust (``Trust Board''). The Adviser
will review and monitor the creditworthiness of such institutions.
The Adviser will monitor the value of the collateral at the time the
transaction is entered into and at all times during the term of the
repurchase agreement.
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    The Fund may invest up to 20% of its net assets in the securities
of other investment companies, including money market funds, closed-end
funds, open-end funds and other ETFs.\17\
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    \17\ 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. In addition, the Fund
may invest in the securities of certain other investment companies
in excess of the limits imposed under the 1940 Act pursuant to an
exemptive order that the Trust has obtained from the Commission. See
Investment Company Act Release No. 30377 (February 5, 2013) (File
No. 812-13895). The ETFs in which the Fund may invest include Index
Fund Shares (as described in Nasdaq Rule 5705), Portfolio Depository
Receipts (as described in Nasdaq Rule 5705), and Managed Fund Shares
(as described in Nasdaq Rule 5735). While the Fund may invest in
inverse ETFs, the Fund will not invest in leveraged or inverse
leveraged (e.g., 2X or -3X) ETFs.
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    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.\18\ The Fund will monitor its
portfolio liquidity on an ongoing basis to determine whether, in light
of current circumstances, an adequate level of liquidity is being
maintained, and will consider taking appropriate steps in order to
maintain adequate liquidity if, through a change in values, net assets,
or other circumstances, more than 15% of the Fund's net assets are held
in illiquid assets. Illiquid assets include securities subject to
contractual or other restrictions on resale and other instruments that
lack readily available markets as determined in accordance with
Commission staff guidance.
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    \18\ In reaching liquidity decisions, the Adviser may consider
the following factors: The frequency of trades and quotes for the
security; the number of dealers wishing to purchase or sell the
security and the number of other potential purchasers; dealer
undertakings to make a market in the security; and the nature of the
security and the nature of the marketplace in which it trades (e.g.,
the time needed to dispose of the security, the method of soliciting
offers and the mechanics of transfer).
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    The Fund may not invest 25% or more of the value of its total
assets in securities of issuers in any one industry or group of
industries. This restriction does not apply to (a) Municipal Securities
issued by governments or political subdivisions of governments, (b)
obligations issued or guaranteed by the U.S. government, its agencies
or instrumentalities, or (c) securities of other investment
companies.\19\
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    \19\ See Form N-1A, Item 9. The Commission has taken the
position that a fund is concentrated if it invests more than 25% of
the value of its total assets in any one industry. See, e.g.,
Investment Company Act Release No. 9011 (October 30, 1975), 40 FR
54241 (November 21, 1975).
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    The Fund intends to qualify each year as a regulated investment
company (``RIC'') under Subchapter M of the Internal Revenue Code of
1986, as amended.
Creation and Redemption of Shares
    The Fund will issue and redeem Shares on a continuous basis at net
asset value (``NAV'') \20\ only in large blocks of

Shares (``Creation Units'') in transactions with authorized
participants, generally including broker-dealers and large
institutional investors (``Authorized Participants''). Creation Units
will consist of 50,000 Shares. As described in the Registration
Statement and consistent with the Exemptive Relief, the Fund will issue
and redeem Creation Units in exchange for an in-kind portfolio of
instruments or, under certain circumstances, cash in lieu of such
instruments or a combination of instruments and cash (the ``Creation
Basket''). In addition, if there is a difference between the NAV
attributable to a Creation Unit and the market value of the Creation
Basket exchanged for the Creation Unit, the party conveying instruments
with the lower value will pay to the other an amount in cash equal to
the difference (referred to as the ``Cash Component'').
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    \20\ The NAV of the Fund's Shares generally will be calculated
once daily Monday through Friday as of the close of regular trading
on the New York Stock Exchange, generally 4:00 p.m., Eastern time
(the ``NAV Calculation Time''). NAV per Share will be calculated by
dividing the Fund's net assets by the number of Fund Shares
outstanding. For more information regarding the valuation of Fund
investments in calculating the Fund's NAV, see the Registration
Statement.
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    Creations and redemptions must be made by an Authorized Participant
or through a firm that is either a member of the National Securities
Clearing Corporation (``NSCC'') or a Depository Trust Company
participant, that, in each case, must have executed an agreement that
has been agreed to by the Distributor and BBH with respect to creations
and redemptions of Creation Units. All standard orders to create
Creation Units must be received by the transfer agent no later than the
closing time of the regular trading session on the New York Stock
Exchange (ordinarily 4:00 p.m., Eastern time) (the ``Closing Time''),
in each case on the date such order is placed in order for the creation
of Creation Units to be effected based on the NAV of Shares as next
determined on such date after receipt of the order in proper form.
Shares may be redeemed only in Creation Units at their NAV next
determined after receipt, not later than the Closing Time, of a
redemption request in proper form by the Fund through the transfer
agent and only on a business day.
    The Fund's custodian, through the NSCC, will make available on each
business day, prior to the opening of business of the Exchange, the
list of the names and quantities of the instruments comprising the
Creation Basket, as well as the estimated Cash Component (if any), for
that day. The published Creation Basket will apply until a new Creation
Basket is announced on the following business day.
Net Asset Value
    The Fund's NAV will be determined as of the close of trading
(normally 4:00 p.m., Eastern time) on each day the New York Stock
Exchange 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 Board or its
delegate.
    The Fund's investments will be valued daily at market value or, in
the absence of market value with respect to any investment, at fair
value, in each case in accordance with valuation procedures (which may
be revised from time to time) adopted by the Trust Board (``Valuation
Procedures'') and in accordance with the 1940 Act. A market valuation
generally means a valuation (i) obtained from an exchange, an
independent pricing service (``Pricing Service''), or a major market
maker (or dealer) or (ii) based on a price quotation or other
equivalent indication of value supplied by an exchange, a Pricing
Service, or a major market maker (or dealer). The information
summarized below is based on the Valuation Procedures as currently in
effect; however, as noted above, the Valuation Procedures are amended
from time to time and, therefore, such information is subject to
change.
    Certain securities in which the Fund may invest will not be listed
on any securities exchange or board of trade. Such securities will
typically be bought and sold by institutional investors in individually
negotiated private transactions that function in many respects like an
over-the-counter secondary market, although typically no formal market
makers will exist. Certain securities, particularly debt securities,
will have few or no trades, or trade infrequently, and information
regarding a specific security may not be widely available or may be
incomplete. Accordingly, determinations of the fair value of debt
securities may be based on infrequent and dated information. Because
there is less reliable, objective data available, elements of judgment
may play a greater role in valuation of debt securities than for other
types of securities. Typically, debt securities (other than those
described in the next sentence) will be valued using information
provided by a Pricing Service. Debt securities having a remaining
maturity of 60 days or less when purchased will be valued at cost
adjusted for amortization of premiums and accretion of discounts.
    Equity securities (including ETFs and closed-end funds) listed on
any exchange other than the Exchange will be valued at the last sale
price on the business day as of which such value is being determined.
Equity securities (including ETFs and closed-end funds) listed on the
Exchange will be valued at the official closing price on the business
day as of which such value is being determined. If there has been no
sale on such day, or no official closing price in the case of
securities traded on the Exchange, the securities will be valued using
fair value pricing, as described below. Equity securities traded on
more than one securities exchange will be valued at the last sale price
or official closing price, as applicable, on the business day as of
which such value is being determined at the close of the exchange
representing the principal market for such securities. Non-fixed income
securities traded in the over-the-counter market will be valued at the
midpoint between the bid and the asked price, if available, and
otherwise at the closing bid prices. Registered open-end management
investment companies (other than ETFs, which will be valued as
described above) will be valued at their net asset values as reported
by such registered open-end management investment companies to Pricing
Services.
    Exchange-traded options and futures contracts will be valued at the
closing price in the market where such contracts are principally
traded. Over-the-counter futures contracts and options will be valued
at the midpoint between the bid and the asked price, if available, and
otherwise at the closing bid prices.
    Interest rate swaps will be valued using a Pricing Service or, if
the Pricing Service does not provide a value, the Adviser's pricing
committee will then attempt to obtain one or more quotes provided by
the selling dealer or financial institution and will value the swaps
accordingly.
    Certain securities may not be able to be priced by pre-established
pricing methods. Such securities may be valued by the Trust Board or
its delegate at fair value. The use of fair value pricing by the Fund
will be governed by the Valuation Procedures and conducted in
accordance with the provisions of the 1940 Act. Valuing the Fund's
securities using fair value pricing will result in using prices for
those securities that may differ from current market

valuations or official closing prices on the applicable exchange.
Availability of Information
    The Fund's Web site (www.ftportfolios.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 Shares' 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''),\21\ 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 \22\ 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.\23\ The Disclosed Portfolio will include,
as applicable, the names, quantities, percentage weightings and market
values of the portfolio securities and other assets held by the Fund.
The Web site information will be publicly available at no charge.
---------------------------------------------------------------------------

    \21\ 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.
    \22\ 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., Eastern time; (2) Regular Market Session from 9:30 a.m. to 4
p.m. or 4:15 p.m., Eastern time; and (3) Post-Market Session from 4
p.m. or 4:15 p.m. to 8 p.m., Eastern time).
    \23\ 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''). 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.
---------------------------------------------------------------------------

    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 Disclosed Portfolio, will be
disseminated. Moreover, the Intraday Indicative Value, available on the
NASDAQ OMX Information LLC proprietary index data service,\24\ 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 Intraday Indicative
Value will be based on quotes and closing prices from the securities'
local market and may not reflect events that occur subsequent to the
local market's close. Premiums and discounts between the Intraday
Indicative Value and the market price may occur. This should not be
viewed as a ``real time'' update of the NAV per Share of the Fund,
which is calculated only once a day.
---------------------------------------------------------------------------

    \24\ Currently, the NASDAQ OMX Global Index Data Service
(``GIDS'') is the NASDAQ OMX 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.
---------------------------------------------------------------------------

    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.
    Investors will also be able to obtain the Fund's Statement of
Additional Information (``SAI''), the Fund's annual and semi-annual
reports (together, ``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 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. Information regarding 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 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. One source of price information
for Municipal Securities is the Electronic Municipal Market Access
(``EMMA'') of the Municipal Securities Rulemaking Board (``MSRB'').\25\
Additionally, the MSRB offers trade data subscription services that
permit subscribers to obtain information about municipal securities
transactions. Quotation information from brokers and dealers or Pricing
Services will also be available for fixed income securities generally.
Intraday executable price information for fixed income securities,
equity securities and derivatives will be available from major broker-
dealer firms and major market data vendors. For exchange-traded assets,
intraday price information will also be available directly from the
applicable listing exchanges. Intraday price information will also
generally be available through subscription services, such as
Bloomberg, Markit, and Thomson Reuters, which can be accessed by
Authorized Participants and other investors.
---------------------------------------------------------------------------

    \25\ A source of price information for other types of fixed
income securities is the Trade Reporting and Compliance Engine
(``TRACE'') of the Financial Industry Regulatory Authority
(``FINRA'').
---------------------------------------------------------------------------

    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. All terms relating to the Fund
that are referred to, but not defined in, this proposed rule change
will be defined 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 \26\ 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.
---------------------------------------------------------------------------

    \26\ 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/or the 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., Eastern time. 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 FINRA on behalf of the Exchange, which are designed to detect
violations of Exchange rules and applicable federal securities
laws.\27\ 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.
---------------------------------------------------------------------------

    \27\ 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 with other markets and other entities
that are members of the Intermarket Surveillance Group (``ISG''),\28\
and FINRA may obtain trading information regarding trading in the
Shares from such markets and other entities. In addition, the Exchange
may obtain information regarding trading in the Shares from markets and
other entities that are members of ISG, which includes 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.
---------------------------------------------------------------------------

    \28\ 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.
---------------------------------------------------------------------------

    At least 90% of the Fund's net assets that are invested in
exchange-traded futures and exchange-traded options (in the aggregate)
will be invested in instruments that trade in markets that are members
of ISG or are parties to a comprehensive surveillance sharing agreement
with the Exchange.
    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 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 also
FINRA on behalf of the Exchange, which are designed to detect
violations of Exchange rules and applicable federal securities laws.
    The Adviser is not a broker-dealer, but it is affiliated with a
broker-dealer and is required to implement a ``fire wall'' with respect
to such broker-dealer affiliate regarding access to information
concerning the composition and/or changes to the Fund's portfolio. 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.
    FINRA, on behalf of the Exchange, will communicate as needed
regarding trading in the Shares with other markets and other entities
that are members of ISG, and FINRA may obtain trading

information regarding trading in the Shares from such markets and other
entities. In addition, the Exchange may obtain information regarding
trading in the Shares from markets and other entities that are members
of ISG, which includes 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. At least 90% of
the Fund's net assets that are invested in exchange-traded futures and
exchange-traded options (in the aggregate) will be invested in
instruments that trade in markets that are members of ISG or are
parties to a comprehensive surveillance sharing agreement with the
Exchange.
    The primary investment objective of the Fund will be to generate
current income that is exempt from regular federal income taxes and its
secondary objective will be long-term capital appreciation. Under
normal market conditions, the Fund will seek to achieve its investment
objectives by investing at least 80% of its net assets (including
investment borrowings) in Municipal Securities. The Fund will invest at
least 65% of its net assets in investment grade securities. The Fund
may invest up to 10% of its net assets in taxable municipal securities
and up to 10% of its net assets in distressed Municipal Securities. The
Fund generally expects that no more than 20% of the value of the Fund's
net assets will be invested in derivative instruments; however, there
will be no limitation on the Fund's investments in derivative
instruments to be used by the Fund solely for hedging purposes. The
Fund's investments in derivatives will be consistent with the Fund's
investment objectives and the 1940 Act and will not be used to seek to
achieve a multiple or inverse multiple of an index. Also, 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 assets. Illiquid assets include securities subject to
contractual or other restrictions on resale and other instruments that
lack readily available markets as determined in accordance with
Commission staff guidance.
    The Fund's investments will be valued daily at market value or, in
the absence of market value with respect to any investment, at fair
value, in each case in accordance with the Valuation Procedures and in
accordance with the 1940 Act.
    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 and broadly displayed 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 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. One source
of price information for Municipal Securities is the MSRB's EMMA.
Additionally, the MSRB offers trade data subscription services that
permit subscribers to obtain information about municipal securities
transactions. Quotation information from brokers and dealers or Pricing
Services will also be available for fixed income securities generally.
Intraday executable price information for fixed income securities,
equity securities and derivatives will be available from major broker-
dealer firms and major market data vendors. For exchange-traded assets,
intraday price information will also be available directly from the
applicable listing exchanges. Intraday price information will also
generally 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
with other markets and other entities that are members of ISG and FINRA
may obtain trading information regarding trading in the Shares from
such markets and other entities. In addition, the Exchange may obtain
information regarding trading in the Shares from markets and other
entities that are members of ISG, which includes 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 (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the Exchange consents, the Commission shall: (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-2014-019 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NASDAQ-2014-019. 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-2014-019 and
should be submitted on or before March 18, 2014.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\29\
---------------------------------------------------------------------------

    \29\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-03972 Filed 2-24-14; 8:45 am]
BILLING CODE 8011-01-P


UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

WASHINGTON, D.C. 20460

	OFFICE OF PREVENTION, PESTICIDE

	AND TOXIC SUBSTANCES

  SEQ CHAPTER \h \r 1 MEMORANDUM

Date:  8/13/2009

SUBJECT:  Deltamethrin.  Response to Tolerance Petition for Use on Flax.

PC Code:  097805 	DP Barcode:  D335134

Decision No. 372353	Registration No.:  264-1007

Petition Nos.:  6E7140	Regulatory Action:  Section 3

Risk Assess Type:  Single Chemical Aggregate	Case No.:  None

TXR No.:  None	CAS No.:  52918-63-5

MRID No.:   46990701 	40 CFR:  180.435

FROM:  	Douglas Dotson, Ph.D., Chemist

		Margarita Collantes, Biologist

		Risk Assessment Branch II

Health Effects Division (7509P)  SEQ CHAPTER \h \r 1

THROUGH:	Richard Loranger, Ph.D., Senior Scientist

		Christina Swartz, Branch Chief

	Risk Assessment Branch II

Health Effects Division (7509P)

TO:		Barbara Madden, RM Team 05

Risk Integration Minor Use and Emergency Response Branch (RIMUERB)

		Registration Division (7505P)

HED has reviewed the Interregional Research Project Number 4 (IR-4) tolerance petition for the use of the insecticide deltamethrin on flax.  In support of this petition, IR-4 submitted field trial data for the proposed use.  IR-4 also submitted use directions which it is proposing to add to the labels for Decis 0.2EC Insecticide and Decis 1.5EC Insecticide.  The target pests are armyworms and grasshoppers.  The proposed maximum single application rate is 0.02 lb ai/A, and the maximum seasonal application rate is 0.04 lb ai/A.  The re-treatment interval is 7 days and the PHI is 21 days.  For ground application, a minimum of 5 gallons of water per acre is to be used.  For aerial application, a minimum of 2 gallons of water per acre is to be used.  IR-4 proposed a tolerance of 0.1 ppm for flax, seed and a tolerance of 0.3 ppm for flax, meal.  The submitted residue data are adequate and support the proposed tolerance (Memo, D338791, W. Drew, 3/4/2008).

Background

The most recent human health risk assessment for deltamethrin was completed in 2004 (Memo, D262496, D. Dotson, et. al, 11/15/2004).  At that time, HED recommended in favor of the establishment of tolerances for numerous plant and animal commodities.  Since 2004, HED has received and evaluated a developmental neurotoxicity (DNT) study; in addition, HED’s approach for retaining, reducing or removing the required 10X FQPA factor has changed.  Finally, the Part 158 Guidelines for toxicity testing have been revised and updated.  Therefore, in order to review the proposed use on flax, HED has re-evaluated the toxicology database for deltamethrin (Memo, D367616, E. Scollon, 8/11/2009), and has revised the hazard characterization and endpoint selection for risk assessment in accordance with current policies.  A single dose and endpoint were selected for all risk assessment scenarios, based on decreased motor activity observed in an acute neurotoxicity study conducted in rats.  The 10X FQPA Safety Factor was retained for infants and children to account for age-related susceptibility.  A summary table of the toxicological doses and endpoints is provided in Attachment 1.

The purpose of this memorandum is to provide an updated aggregate risk assessment that takes into account exposure and risk from existing deltamethrin uses, including those inside and around homes.  The proposed use on flax is not expected to have a significant impact on dietary exposure and risk, but aggregate risks are of concern because of estimated exposure from existing residential uses.

Dietary Exposure and Risk

In support of the 2004 risk assessment (Memo, D284297, D. Dotson, 11/12/2004), HED performed refined acute and chronic dietary exposure assessments.  A cancer assessment was not performed because deltamethrin is considered “not likely to be carcinogenic to humans.”  The acute and chronic assessments were based on field trial data, percent crop treated (%CT) estimates, and projected percent crop treated (PPCT) estimates.  Both empirical and default processing factors were used.  The closely-related pyrethroid, tralomethrin, breaks down very rapidly through debromination into deltamethrin.  The acute and chronic analyses accounted for tralomethrin use.  Percent CT estimates were used for tralomethrin.  In the previous assessments, residues in drinking water were not directly included.  At that time, HED was back-calculating maximum allowable drinking water concentrations (DWLOCs).

In conjunction with the proposed use on flax, HED updated the previous analyses by incorporating current %CT estimates and by including estimated drinking water concentrations directly into the dietary exposure assessments.  As %CT estimates were used in the acute assessment, HED recommends that the 99.9th percentile of exposure be used for regulation.

Acute Dietary Exposure and Risk:

For the general U.S. population and the following population subgroups, the risk estimates are 9% or less of the acute population adjusted dose (aPAD) of 0.01 mg/kg/day:  youth 13-19, adults 20-49, adults 50+, and females 13-49.  For the following subgroups, risk estimates ranged from 105-143% of the aPAD of 0.001 mg/kg/day and therefore exceed HED’s level of concern:  all infants (105% aPAD), children 1-2 (134% aPAD), children 3-5 (143% aPAD) and children 6-12 (107% aPAD).  These risk estimates could be further refined through the use of monitoring data.

Chronic Dietary Exposure and Risk:

The same endpoints were selected for the chronic assessment as were selected for the acute assessment.  The PAD is 0.01 mg/kg/day for population subgroups that include adults, and 0.001 mg/kg/day for population subgroups that are comprised solely of infants and children less than 13 years of age.  The dietary (food + drinking water) risk estimates of the general U.S. population and all population subgroups are below HED’s level of concern.  The most highly exposed population subgroup, Children 1-2 years old, uses 11% of the chronic PAD.  The chronic dietary exposure estimates have been refined in order to allow for additional exposure from residential sources and to conduct the most refined aggregate exposure and risk assessment possible.  Although the %cPAD value for Children 1-2 is 11%, the exposure estimate is very low, only 0.00011 mg/kg/day.  If necessary, further refinement could be accomplished through the use of monitoring data.  The results of the dietary exposure assessments are given in Table 1, below.

Table 1.  Summary of Acute and Chronic (Non-Cancer) Dietary Exposure and Risk for Deltamethrin

(Food and Drinking Water)

Population Subgroup	Acute Dietary

(99.9th Percentile)	Chronic Dietary

	Dietary Exposure (mg/kg/day)	% aPAD	Dietary Exposure

(mg/kg/day)	% cPAD

General U.S. Population	0.000873	8.7	0.000048	<1

All Infants (< 1 year old)	0.001054	110	0.000056	5.6

Children 1-2 years old	0.001336	130	0.000109	11

Children 3-5 years old	0.001433	140	0.000098	9.8

Children 6-12 years old	0.001067	110	0.000065	6.5

Youth 13-19 years old	0.000876	8.8	0.000041	<1

Adults 20-49 years old	0.000726	7.3	0.000040	<1

Adults 50+ years old	0.000670	6.7	0.000041	<1

Females 13-49 years old	0.000780	7.8	0.000039	<1

Occupational and Residential Exposure and Risk

The occupational and residential exposures resulting from the use of deltamethrin were previously assessed (Memos, D284181, M. Collantes, 7/18/2003 and D307927, M.Collantes, 10/14/2004).  Since the completion of these reviews, the following changes have been made to the hazard characterization:

1) A dermal dose and endpoint have been selected.

The same NOAEL (dose) and endpoint selected for inhalation exposure have been selected for dermal exposure calculations.  This NOAEL is 1 mg/kg/day and is based on decreased motor activity observed in an acute neurotoxicity study in rats.  As the NOAEL is being selected from an oral study, a dermal absorption factor of 1% is being used to estimate dermal exposure.

2) The 10X FQPA Safety Factor has been retained for infants and children, based on age-related susceptibility to deltamethrin toxicity.

The level of concern (LOC) for dermal, inhalation and oral exposure for children is a margin of exposure (MOE) ≥1000; however the LOC for adults remains an MOE ≥ 100.

As a result of these changes, residential scenarios which were not of concern in previous reviews (MOE = 300) are now considered to be risks of concern (MOE = 1000).  Furthermore, with the inclusion of a dermal endpoint to the hazard characterization, a dermal assessment of residential exposure has also resulted in new risks of concern.

 Residential Risk Estimates

Handlers

Residential handler inhalation exposure scenarios were assessed in the 2004 risk assessment.  A cursory review of the residential handler dermal exposure scenarios was performed for purposes of this assessment using the dermal NOAEL of 1 mg/kg/day.  All residential handler scenarios resulted in dermal and inhalation MOEs ≥ 100 and are not of concern to HED.

Postapplication

Residential postapplication exposure scenarios can occur as a result of deltamethrin use as a broadcast and crack and crevice application to lawns and indoor surfaces.   Postapplication exposure can result in dermal, inhalation, and incidental oral (i.e., hand-to-mouth, for children only) exposures.  Previous exposure estimates have been summarized and characterized herein, with the exception of dermal exposures, which have been calculated for the first time.

Potential postapplication dermal exposure resulting from the use of deltamethrin on lawns is not of concern for either adults or children; all dermal and inhalation MOEs are greater than or equal to 100 for adults and greater than or equal to 1000 for children.  In addition, for adults, all indoor surface scenarios result in dermal and inhalation MOEs ≥ 100 and are not of concern.

Residential postapplication scenarios that result in risks of concern are:

1) children’s dermal exposure resulting from indoor broadcast and crack and crevice application of sprays ranging from 0.06% to 0.03% in concentration;

2) hand-to-mouth exposure resulting from broadcast application to lawns; and

3) hand-to-mouth exposure resulting from indoor broadcast and crack and crevice application of sprays ranging from 0.06% to 0.02% in concentration.

The short-term oral MOE for incidental ingestion of granules (DeltaGard®G Insecticide) was 190, which is above HED’s level of concern.  However, as explained in the 2004 assessment, HED considers ingestion of granules to be an episodic event, not routine behavior.  As granular ingestion does not occur on a regular basis, HED’s concern for human health is related to acute poisoning rather than short or intermediate-term residue exposure.  Based on information provided by Bayer CropScience (Bayer CropScience Response to HED Human Health Assessment for Deltamethrin, 6/9/03), HED concluded the likelihood of a child consuming granules is extremely small.  HED based this conclusion on the relatively small size of granules, the density of grass the product is applied to, the fact that only a few granules can be visually identified or seen on the lawns from a height of approximately six inches, and the unpleasant taste and odor of the granules.  Furthermore, the product label provides language and instructions to the homeowner to prevent episodic incidental ingestion, such as:  “to avoid potential residue on concrete surfaces (patios, sidewalks, etc) it is recommended that granules applied to these surfaces be removed” and “apply product uniformly to treated area and irrigate with an adequate quantity of water to thoroughly moisten grass and thatch and dissolve the insecticide granules.”  While HED continues to conclude that exposure from granular ingestion is likely to be very low, risk from this scenario should be re-examined in light of the new target MOE of 1000.

In order to provide a summary of the updated residential risks, focusing on those for which there is a risk concern, HED has used the previously calculated exposures, along with the revised level of concern (LOC) for children’s residential exposure.  The updated exposure and residential risk estimates for the individual exposure pathways are provided in Table 2, below.

Table 2:  Deltamethrin Residential Postapplication Exposure to Children

Scenario	Exposure

(mg/kg/day)	Projected Risk Estimates

LOC = MOE = 1000

Lawn

Dermal

Broadcast	0.0005	2,000

Hand-To-Mouth

Broadcast	0.00194	515

Indoor Broadcast

Dermal

0.06 – 0.03% Sprays	0.0028 – 0.0014	350 -690

0.02% Sprays	0.00096	1,000

0.01% Spray	0.00048	2,100

Hand-To-Mouth

0.06 – 0.02% Sprays	0.0044 – 0.0015	230 - 670

0.01% Sprays	0.00074	1,400

Indoor Crack & Crevice

Dermal

0.06 – 0.03% Sprays	0.0023 – 0.0011	430 - 870

0.02% Sprays	0.000768	1300

Hand-to-Mouth

0.06 – 0.02% Sprays	0.0036 – 0.0012	280 - 830

0.01% Sprays	0.0006	1,700

Ingestion of Pesticide Treated Turf

Delta WSB (Reg No. 432-832)	2,000

Ingestion of Treated Soil

Delta WSB (Reg No. 432-832)	150,000

Incidental Ingestion of  Granules

DeltaGard® GC Insecticide (Reg No. 432-837)	190

Ingestion of Paint Chips

Bug Juice Paint Additive (Reg. No. 4733211) 	2,000

Combined Residential Risk Estimates

HED combined dermal and incidental oral sources of post application exposure for toddlers to obtain an estimate of potential combined exposure which could be used for the aggregate assessment.  These scenarios consisted of dermal and hand-to-mouth postapplication exposures for toddlers resulting from indoor broadcast application of deltamethrin.  The combined residential exposure resulted in a total MOE of 140 and is of concern to HED.  A combined residential MOE of 1,100 (i.e., including dermal and hand-to-mouth exposure) is needed to reach an acceptable aggregate (dietary + residential exposure) assessment.  Table 3 provides a summary of the combined residential indoor broadcast exposures and risks.

Table 3.  Combined Residential Exposure and Risk Estimates from Indoor Broadcast Application

Postapplication

Scenarios	Daily Dose

(mg/kg/day) 1	MOE 2	Combined

MOE 3

Toddler Dermal - indoor broadcast surface	0.0028	350

140

Toddler Hand-to-Mouth - indoor broadcast surfac	0.0044	230

	1 Daily Dose: see Memo, D307927, M. Collantes, 10/14/2004 (Table 7)

	2  Toddler Dermal MOE = NOAEL (1 mg/kg/day)

       	               	Dermal Dose

Toddler Oral MOE = NOAEL (1 mg/kg/day)

       	                  Oral Dose

	3 Toddler Combined MOE = 1/(dermal dose + oral dose)

Potential Refinements

Hand-to-mouth exposure estimates were refined in the 2004 assessment with the submission of a chemical-specific hand press study.  HED is aware that the registrant is planning on submitting a probabilistic CARES assessment in December 2009.  The assessment is being performed for the purpose of refining the residential exposure and risk estimates.  Furthermore, as a result of the ongoing revisions to HED’s Residential Standard Operating Procedures (SOPs) for indoor surface exposure, the parameters and algorithms for dermal, inhalation, and hand-to-mouth exposure calculations will likely change, and could result in significantly different exposure estimates.

Occupational Risk Estimates

Occupational handler and postapplication inhalation exposure were assessed in the 2004 risk assessment.  A cursory review of the occupational handler and postapplication dermal exposure scenarios using the dermal NOAEL has also been performed.  All occupational scenarios resulted in dermal and inhalation MOEs ≥ 100 and are not of concern.  Furthermore, no occupational risks of concern are expected for the proposed use pattern on flax.  Although a separate occupational risk assessment has not been conducted for flax, the proposed use rate, application method, formulation type, standard acreage, and handler and postapplication activities have been addressed through a wide range of occupational scenarios previously assessed for deltamethrin, for which risks were not a concern.

Aggregate Exposure and Risk

For the purposes of performing short- and intermediate-term aggregate exposure assessments, HED estimates exposure resulting from dietary (food + water) and residential scenarios.  As the combined residential exposure for children (dermal + hand-to-mouth) from indoor broadcast application of deltamethrin resulted in a total MOE of 140, the aggregate risk estimate will also be of concern.  A combined residential MOE of 1,100 is needed to reach an acceptable aggregate (dietary + residential exposure) assessment.

Conclusions/Recommendations

In order to achieve an MOE of 1000, a significant reduction in application rates in residential settings would be needed.  As aggregate risks are of concern, with the lowest combined MOE of 140, HED cannot recommend in favor of the proposed use on flax and the associated proposed tolerances.  However, based on the conservative nature of the uncertainty factors retained for children’s subpopulations (i.e., a combined UF of 1000X), HED believes the risk estimates are upper-bound, and overestimate the actual risks associated with deltamethrin uses.

Appendix 1

Summary of Toxicological Doses and Endpoints for Use in Human Risk Assessments

Table A.1.a.  Summary of Toxicological Doses and Endpoints for Deltamethrin for Use in Dietary and Non-Occupational Human Health Risk Assessments

Exposure/

Scenario	Point of Departure	Uncertainty/FQPA Safety Factors	RfD, PAD, Level of Concern for Risk Assessment	Study and Toxicological Effects

Acute Dietary (General Population, excluding Infants and Children) NOAEL= 1 mg/kg/day	UFA= 10 x

UFH=10 x

FQPA SF=1x

	Acute RfD = 0.01 mg/kg/day

aPAD = 0.01 mg/kg/day	Acute Motor Activity Study in Rats (Wolansky et al., 2006), based on decreased motor activity in adult male rats.

Using a nonlinear exponential threshold additivity model, a NOAEL (aka threshold dose) was obtained by fitting motor activity data across 7 dose groups; 0, 0.03, 0.1, 0.3, 1, 3, and 10 mg/kg.  The NOAEL is an estimate of the highest no-effect dose level at which treated rats would not display any decrease in motor activity.

Supported by subchronic rat, subchronic dog and chronic dog studies with NOAELs of 1mg/kg/day and LOAELs of 2.5 or 10 mg/kg/day based on signs of neurotoxicity including unsteadiness, tremors and jerking movements, salivation, and chewing on extremities (chronic dog only).

Acute Dietary (Infants and Children)	NOAEL= 1 mg/kg/day	UFA= 10 x

UFH=10 x

FQPA SF=10x	Acute RfD = 0.01 mg/kg/day

aPAD = 0.001 mg/kg/day	Acute Motor Activity Study in Rats (Wolansky et al., 2006), based on decreased motor activity in adult male rats.

See Acute Dietary-General population for supporting information.

Acute Dietary

(Females 13-49 years of age)	N/A	N/A	N/A	No appropriate endpoint available

Chronic Dietary (All populations, excluding infants and children)	NOAEL= 1 mg/kg/day	UFA= 10 x

UFH=10 x

FQPA SF=1x	Chronic RfD = 0.01 mg/kg/day

cPAD = 0.01 mg/kg/day	Acute Motor Activity Study in Rats (Wolansky et al., 2006), based on decreased motor activity in adult male rats.

See Acute Dietary-General population for supporting information.

Chronic Dietary (Infants and children)	NOAEL= 1 mg/kg/day	UFA= 10 x

UFH=10 x

FQPA SF=10x	Chronic RfD = 0.01 mg/kg/day

cPAD = 0.001 mg/kg/day	Acute Motor Activity Study in Rats (Wolansky et al., 2006), based on decreased motor activity in adult male rats.

See Acute Dietary-General population for supporting information.

Incidental Oral; Short- (1-30 days) and Intermediate-Term (1-6 months) NOAEL= 1 mg/kg/day	UFA= 10 x

UFH=10 x

FQPA SF=10x	Residential LOC for MOE = 1000	Acute Motor Activity Study in Rats (Wolansky et al., 2006), based on decreased motor activity in adult male rats.

See Acute Dietary-General population for supporting information.

Dermal

(General population excluding infants and children)

All Durations	NOAEL= 1 mg/kg/day	UFA= 10 x

UFH=10 x

FQPA SF=1x

DAF: 1%	Residential LOC for MOE = 100

	Acute Motor Activity Study in Rats (Wolansky et al., 2006), based on decreased motor activity in adult male rats.

See Acute Dietary-General population for supporting information.

Dermal

(Infants and children)

All Durations	NOAEL= 1 mg/kg/day	UFA= 10 x

UFH=10 x

FQPA SF=10x

DAF: 1%	Residential LOC for MOE = 1000

	Acute Motor Activity Study in Rats (Wolansky et al., 2006), based on decreased motor activity in adult male rats.

See Acute Dietary-General population for supporting information.

Inhalation

(General population excluding infants and children)

All Durations	NOAEL= 1 mg/kg/day	UFA= 10 x

UFH=10 x

FQPA SF=1x

IAF: 100%	Residential LOC for MOE = 100

	Acute Motor Activity Study in Rats (Wolansky et al., 2006), based on decreased motor activity in adult male rats.

See Acute Dietary-General population for supporting information.

Inhalation

(Infants and children)

All Durations	NOAEL= 1 mg/kg/day	UFA= 10 x

UFH=10 x

FQPA SF=10x

IAF: 100%	Residential LOC for MOE = 1000

	Acute Motor Activity Study in Rats (Wolansky et al., 2006), based on decreased motor activity in adult male rats.

See Acute Dietary-General population for supporting information.

Cancer (oral, dermal, inhalation)	Classification:  “Not likely to be Carcinogenic to Humans” based on the absence of significant tumor increases in two adequate rodent carcinogenicity studies.

Point of Departure (POD) = A data point or an estimated point that is derived from observed dose-response data and  used to mark the beginning of extrapolation to determine risk associated with lower environmentally relevant human exposures.  NOAEL = no observed adverse effect level.  LOAEL = lowest observed adverse effect level.  UF = uncertainty factor.  UFA = extrapolation from animal to human (interspecies).  UFH = potential variation in sensitivity among members of the human population (intraspecies).  UFL = use of a LOAEL to extrapolate a NOAEL.  UFS = use of a short-term study for long-term risk assessment.  UFDB = to account for the absence of key date (i.e., lack of a critical study).  MOE = margin of exposure.  LOC = level of concern. DAF = Dermal absorption factor.  IAF = Inhalation absorption factor.   N/A = not applicable.

The following endpoints were chosen for the current risk assessment and apply to the proposed nonfood use.

Table A.1.b.  Summary of Toxicological Doses and Endpoints for Deltamethrin for Use in Occupational Human Health Risk Assessments

Exposure/

Scenario	Point of Departure	Uncertainty Factors	Level of Concern for Risk Assessment	Study and Toxicological Effects

Dermal

All Durations	NOAEL= 1 mg/kg/day	UFA= 10 x

UFH=10 x

DAF: 1%	Occupational LOC for MOE = 100	Acute Motor Activity Study in Rats (Wolansky et al., 2006), based on decreased motor activity in adult male rats.

Using a nonlinear exponential threshold additivity model, a NOAEL (aka threshold dose) was obtained by fitting motor activity data across 7 dose groups; 0, 0.03, 0.1, 0.3, 1, 3, and 10 mg/kg.  The NOAEL is an estimate of the highest no-effect dose level at which treated rats would not display any decrease in motor activity.

Supported by subchronic rat, subchronic dog and chronic dog studies with NOAELs of 1mg/kg/day and LOAELs of 2.5 or 10 mg/kg/day based on signs of neurotoxicity including unsteadiness, tremors and jerking movements, salivation, and chewing on extremities (chronic dog only).

Inhalation

All Durations	NOAEL= 1 mg/kg/day	UFA= 10 x

UFH=10 x

IAF: 100%	Occupational LOC for MOE = 100	Acute Motor Activity Study in Rats (Wolansky et al., 2006), based on decreased motor activity in adult male rats.

See Dermal for supporting information.

Cancer (oral, dermal, inhalation)	Classification:  “Not likely to be Carcinogenic to Humans” based on the absence of significant tumor increases in two adequate rodent carcinogenicity studies.

Point of Departure (POD) = A data point or an estimated point that is derived from observed dose-response data and  used to mark the beginning of extrapolation to determine risk associated with lower environmentally relevant human exposures.  NOAEL = no observed adverse effect level.  LOAEL = lowest observed adverse effect level.  UF = uncertainty factor.  UFA = extrapolation from animal to human (interspecies).  UFH = potential variation in sensitivity among members of the human population (intraspecies).  UFL = use of a LOAEL to extrapolate a NOAEL.  UFS = use of a short-term study for long-term risk assessment.  UFDB = to account for the absence of key date (i.e., lack of a critical study).  MOE = margin of exposure.  LOC = level of concern. DAF = Dermal absorption factor.  IAF = Inhalation absorption factor.   N/A = not applicable.

APPENDIX 2

There are currently 80 registered residential/commercial products that contain the active ingredient deltamethrin.  The products are formulated as ready-to-use sprays, granular, dust, liquid, electrical foggers, and a pet collar and are applied by various methods including hose-end sprayers, push-type spreader, shaker can, aerosol can, and foggers used to treat indoors and outdoors.

Table A.2.  Registered Residential and Commericial Labels and Use Sites for Deltamethrin

 Residential

Liquid Soluble Concentrate (4.75% ai)

EPA Reg. # 432-805

Lawn, ornamental plants, decks, fences, foundations, patios other outdoor areas

Dust (0.05% a.i.)

EPA Reg # 869-237, 149-12, 432-823,68543-15, 42697-57, 4-441, 432-772, 28293-322, 40208-6

Crack and crevice and spot indoor (upholstery of chairs and sofa, folds and tufts of mattresses ) / outdoor, perimeter treatment, ornamental,

Granules (0.05 to 0.1 % a.i.)

EPA Reg # 4-422, 8378-60, 432-811, 432-824, 9198-164, 28293-323, 432-851, 28293-346

Lawn and garden ornamentals, perimeters treatment and fireants

RTU Trigger Spray (0.01 to 0.06% a.i.)

EPA Reg # 9444-217, 4822-525, 432-844, 4822-518, 4-440, 28293-324, 432-859,432-857, 432-842, 432-847, 432-883, 432-840, 432-881, 432-846, 45385-97, 42697-54, 40849-74, 36272-21, 28293-336, 28293-334, 28293-333, 28293-332,28293-325, 13283-29, 11715-335, 11715-334, 11623-51, 8848-77, 8848-72, 8848-91, 7401-458, 869-236, 4822-524, 1270-256, 1270-255, 506-184, 498-193, 498-192, 432-884, 4-440, 432-843

Broad spectrum insect control in food handling establishments, manufacturing and processing establishments, households (tufts, folds and edges of bed mattresses), automobiles, boats, cabins, garages, patios, pet sleeping areas, warehouses and wineries

Deltamethrin 4% Dog Collar, EPA Reg # 68451-1

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Wettable Powder (5.0%)

EPA Reg # 432-832, and 4691-163

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Liquid (4.75% ai)

EPA Reg # 432-835, 432-834, 432-763

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Granules (0.05 to 0.1% a.i.)

EPA Reg# 432-836, 432-868, 432-837, 432-867, 432-1242, 432-1241, 432-1240, 432-1243, 10404-99

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[Federal Register Volume 80, Number 94 (Friday, May 15, 2015)]
[Notices]
[Pages 27947-27948]
[FR Doc No: 2015-11735]

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

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. ER15-1687-000]

Blue Cube Operations LLC; Supplemental Notice That Initial
Market-Based Rate Filing Includes Request for Blanket Section 204
Authorization

    This is a supplemental notice in the above-referenced proceeding,
of Blue Cube Operations LLC's application for market-based rate
authority, with an accompanying rate schedule, noting that such
application includes a request for blanket authorization, under 18 CFR
part 34, of future issuances of securities and assumptions of
liability.
    Any person desiring to intervene or to protest should file with the
Federal Energy Regulatory Commission, 888 First Street NE., Washington,
DC 20426, in accordance with Rules 211 and 214 of the Commission's
Rules of Practice and Procedure (18 CFR 385.211 and 385.214). Anyone
filing a motion to intervene or protest must serve a copy of that
document on the Applicant.
    Notice is hereby given that the deadline for filing protests with
regard to the applicant's request for blanket authorization, under 18
CFR part 34, of future issuances of securities and assumptions of
liability is May 28, 2015.
    The Commission encourages electronic submission of protests and
interventions in lieu of paper, using the FERC Online links at http://www.ferc.gov. To facilitate electronic service, persons with Internet
access who will eFile a document and/or be listed as a contact for an
intervenor must create and validate an eRegistration account using the
eRegistration link. Select the eFiling link to log on and submit the
intervention or protests.
    Persons unable to file electronically should submit an original and
5 copies of the intervention or protest to the Federal Energy
Regulatory Commission,

888 First Street NE., Washington, DC 20426.
    The filings in the above-referenced proceeding(s) are accessible in
the Commission's eLibrary system by clicking on the appropriate link in
the above list. They are also available for review in the Commission's
Public Reference Room in Washington, DC. There is an eSubscription link
on the Web site that enables subscribers to receive email notification
when a document is added to a subscribed docket(s). For assistance with
any FERC Online service, please email<EMAIL_ADDRESS>or
call<PHONE_NUMBER> (toll free). For TTY, call<PHONE_NUMBER>.

    Dated: May 8, 2015.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2015-11735 Filed 5-14-15; 8:45 am]
 BILLING CODE 6717-01-P