[Federal Register Volume 81, Number 101 (Wednesday, May 25, 2016)]
[Notices]
[Pages 33291-33299]
[FR Doc No: 2016-12242]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-77861; File No. SR-NYSEArca-2016-67]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
of Proposed Rule Change Relating to the Listing and Trading of Shares
of the Natixis Seeyond International Minimum Volatility ETF Under NYSE
Arca Equities Rule 8.600

May 19, 2016.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given
that on May 5, 2016, NYSE Arca, Inc. (``NYSE Arca'' or ``Exchange'')
filed with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I, II, and III below, which
Items have been prepared by the Exchange. The Commission is publishing
this notice to solicit comments on the proposed rule change from
interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to list and trade shares of the Natixis
Seeyond International Minimum Volatility ETF under NYSE Arca Equities
Rule 8.600 (``Managed Fund Shares). The proposed rule change is
available on the Exchange's Web site at www.nyse.com,

at the principal office of the Exchange, and at the Commission's Public
Reference Room.

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

    In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.

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

1. Purpose
    The Exchange proposes to list and trade shares (''Shares'') of the
following under NYSE Arca Equities Rule 8.600, which governs the
listing and trading of Managed Fund Shares: \4\ Natixis Seeyond
International Minimum Volatility ETF (``Fund'').\5\
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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) (``1940 Act'') organized as an
open-end investment company or similar entity that invests in a
portfolio of securities selected by its investment adviser
consistent with its investment objectives and policies. In contrast,
an open-end investment company that issues Investment Company Units,
listed and traded on the Exchange under NYSE Arca Equities Rule
5.2(j)(3), seeks to provide investment results that correspond
generally to the price and yield performance of a specific foreign
or domestic stock index, fixed income securities index or
combination thereof.
    \5\ The Commission has previously approved listing and trading
on the Exchange of a number of actively managed funds under Rule
8.600. See, e.g., Securities Exchange Act Release Nos. 57801 (May 8,
2008), 73 FR 27878 (May 14, 2008) (SR-NYSEArca-2008-31) (order
approving Exchange listing and trading of twelve actively-managed
funds of the WisdomTree Trust); 62502 (July 15, 2010), 75 FR 42471
(July 21, 2010) (SR-NYSEArca-2010-57) (order approving listing and
trading of AdviserShares WCM/BNY Mellon Focused Growth ADR ETF);
63076 (October 12, 2010), 75 FR 63874 (October 18, 2010) (SR-
NYSEArca-2010-79) (order approving listing and trading of Cambria
Global Tactical ETF); 71540 (February 12, 2014), 79 FR 9515
(February 19, 2014) (SR-NYSEArca-2013-138) (order approving listing
and trading of shares of the iShares Enhanced International Large-
Cap ETF and iShares Enhanced International Small-Cap ETF).
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    The Shares will be offered by Natixis ETF Trust (the ``Trust''),
which is registered with the Commission as an open-end management
investment company.\6\ NGAM Advisors, L.P. will serve as the investment
adviser and administrator to the Fund (the ``Adviser'' or
``Administrator''). Natixis Asset Management U.S., LLC (``Natixis AM
US'') will serve as the Fund's sub-adviser (``Sub-Adviser''). State
Street Bank and Trust Company (the ``Custodian'' or ``Transfer Agent'')
will serve as custodian and transfer agent for the Fund.
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    \6\ The Trust is registered under the 1940 Act. On March 14,
2016, the Trust filed with the Commission its initial registration
statement on Form N-1A under the Securities Act of 1933 (15 U.S.C.
77a) (``Securities Act''), and under the 1940 Act relating to the
Fund (File Nos. 333-210156 and 811-23146) (``Registration
Statement''). The description of the operation of the Trust and the
Fund herein is based, in part, on the Registration Statement. In
addition, the Commission has issued an order granting certain
exemptive relief to the Trust under the1940 Act. See Investment
Company Act Release No. 30654 (August 20, 2013) (File No. 812-13942-
02) (``Exemptive Order'').
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    Commentary .06 to Rule 8.600 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. In addition, Commentary
.06 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 nonpublic information
regarding the open-end fund's portfolio.\7\ Commentary .06 to Rule
8.600 is similar to Commentary .03(a)(i) and (iii) to NYSE Arca
Equities Rule 5.2(j)(3); however, Commentary .06 in connection with the
establishment of a ``fire wall'' between the investment adviser and the
broker-dealer reflects the applicable open-end fund's portfolio, not an
underlying benchmark index, as is the case with index-based funds. The
Adviser and Sub-Adviser are not a registered broker-dealer but are
affiliated with a broker-dealer and have implemented a ``fire wall''
with respect to such broker-dealer regarding access to information
concerning the composition and/or changes to the Fund's portfolio. In
the event (a) the Adviser or any sub-adviser becomes registered as a
broker-dealer or newly affiliated with a broker-dealer, or (b) any new
adviser or sub-adviser is a registered broker-dealer or becomes
affiliated with a broker-dealer, it will implement a fire wall with
respect to its relevant personnel or broker-dealer affiliate 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.
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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 Sub-Adviser and their related
personnel are subject to the provisions of Rule 204A-1 under the
Advisers Act relating to codes of ethics. This Rule requires
investment advisers to adopt a code of ethics that reflects the
fiduciary nature of the relationship to clients as well as
compliance with other applicable securities laws. Accordingly,
procedures designed to prevent the communication and misuse of non-
public information by an investment adviser must be consistent with
Rule 204A-1 under the Advisers Act. In addition, Rule 206(4)-7 under
the Advisers Act makes it unlawful for an investment adviser to
provide investment advice to clients unless such investment adviser
has (i) adopted and implemented written policies and procedures
reasonably designed to prevent violation, by the investment adviser
and its supervised persons, of the Advisers Act and the Commission
rules adopted thereunder; (ii) implemented, at a minimum, an annual
review regarding the adequacy of the policies and procedures
established pursuant to subparagraph (i) above and the effectiveness
of their implementation; and (iii) designated an individual (who is
a supervised person) responsible for administering the policies and
procedures adopted under subparagraph (i) above.
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Principal Investments
    According to the Registration Statement, the Fund will seek long-
term capital appreciation with less volatility than international
equity markets.
    Under normal circumstances,\8\ the Fund will invest primarily in
non-U.S. equity securities, which are the following: Common stocks and
``Depositary Receipts''.\9\ The Fund may

invest in companies of any size and typically will invest in a number
of different countries throughout the world. The Fund's investments may
include non-U.S. equity securities traded ``over-the-counter''
(``OTC'') as well as those traded on a U.S. or foreign securities
exchange. The portfolio may also be exposed to currencies other than
the U.S. dollar.
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    \8\ The term ``under normal circumstances'' includes, but is not
limited to, the absence of extreme volatility or trading halts in
the securities markets or the financial markets generally;
circumstances under which the Fund's investments are made for
temporary defensive purposes; 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.
    \9\ Depositary Receipts are instruments issued by banks that
represent an interest in equity securities held by arrangement with
the bank. Depositary receipts can be either ``sponsored'' or
``unsponsored.'' Sponsored depositary receipts are issued by banks
in cooperation with the issuer of the underlying equity securities.
Unsponsored depositary receipts are arranged without involvement by
the issuer of the underlying equity securities and, therefore, less
information about the issuer of the underlying equity securities may
be available and the price may be more volatile than in the case of
sponsored depositary receipts. American Depositary Receipts
(``ADRs'') are depositary receipts that are bought and sold in the
United States and are typically issued by a U.S. bank or trust
company which evidence ownership of underlying securities by a
foreign corporation. Investments in common stock of foreign
corporations may be in the form of ADRs and Global Depositary
Receipts (``GDRs'') (collectively ``Depositary Receipts'').
Depositary Receipts are receipts, typically issued by a bank or
trust company, which evidence ownership of underlying securities
issued by a foreign corporation. For ADRs, the depository is
typically a U.S. financial institution and the underlying securities
are issued by a foreign issuer. For other Depositary Receipts, the
depository may be a foreign or a U.S. entity, and the underlying
securities may have a foreign or a U.S. issuer. Depositary Receipts
will not necessarily be denominated in the same currency as their
underlying securities. Generally, ADRs, in registered form, are
designed for use in the U.S. securities market. GDRs are tradable
both in the United States and in Europe and are designed for use
throughout the world. Not more than 10% of the Fund's assets will be
invested in non-exchange-listed ADRs.
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    When building and managing the Fund's portfolio, the Sub-Adviser
will employ both quantitative and qualitative factors in an effort to
identify securities that demonstrate lower volatility and, in
combination with other securities, reduce the Fund's overall volatility
relative to the developed international equity market. In assessing the
following three quantitative factors, the Sub-Adviser will consider
both long and short term time horizons that it believes will enable the
Fund to reduce overall volatility: (1) The volatility of each
individual equity security; (2) the correlation of each individual
equity security to all other equity securities in the Fund's investment
universe, as defined by international developed market equities; and
(3) the weight of each equity security within the portfolio.
    Through a qualitative assessment the Sub-Adviser will review a
range of factors including company specific risks as well as overall
portfolio construction and implementation considerations. Taken
together, the quantitative and qualitative process seeks to generate
returns while lowering overall portfolio volatility.
    The Sub-Adviser will construct the Fund's portfolio using a three
step process, described below. The Sub-Adviser first will conduct a
preliminary review of the equity securities within the investment
universe, as defined by international developed market equities.
Developed markets are economies that the Adviser believes are generally
recognized to be fully developed markets, as measured by gross national
income, financial market capitalization and/or other factors. This
initial filtering is designed to exclude dual listings and eliminate
stocks that the Sub-Adviser believes have insufficient history,
liquidity and country-specific risk, such as corporate actions, mergers
or acquisitions.
    In seeking to minimize the overall volatility of the Fund, the Sub-
Adviser will construct a portfolio that is systematically guided by
proprietary quantitative analysis, which makes an assessment of
historical volatilities and correlations within the investment universe
and then estimates which combination of such stocks has the potential
to display the lowest overall portfolio volatility.
    The Sub-Adviser then will actively manage the portfolio by
continuously monitoring for changes in volatility, liquidity and
individual risk factors with the goal of avoiding detrimental risk
concentration. The Sub-Adviser may sell a security when it believes
that a security has acquired substantial exposure to a specific risk
factor.
Other Investments
    While the Fund, under normal circumstances, will invest primarily
(more than 50% of its assets) in non-U.S. equity securities, as
described above, the Fund will invest its remaining assets in the
securities and financial instruments described below.
    The Fund may invest in certificates of deposit (certificates
representing the obligation of a bank to repay funds deposited with it
for a specified period of time), time deposits (non-negotiable deposits
maintained in a bank for a specified period of time up to seven days at
a stated interest rate), and bankers' acceptances (credit instruments
evidencing the obligation of a bank to pay a draft drawn on it by a
customer).
    The Fund also may purchase U.S. dollar-denominated obligations
issued by foreign branches of domestic banks or foreign branches of
foreign banks (``Eurodollar'' obligations) and domestic branches of
foreign banks (``Yankee dollar'' obligations).
    The Fund may invest in the following U.S. government securities:
U.S. Treasury Bills; U.S. Treasury Notes and Bonds; U.S. Treasury
Floating Rate Notes; and Treasury Inflation-Protected Securities
(``TIPS'').
    The Fund may invest in other investment companies, including
exchange-traded funds (``ETFs'').\10\ Investments in investment
companies are typically subject to limitations prescribed by the 1940
Act.
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    \10\ For purposes of this filing, ETFs consist of Investment
Company Units (as described in NYSE Arca Equities Rule 5.2(j)(3));
Portfolio Depositary Receipts (as described in NYSE Arca Equities
Rule 8.100; and Managed Fund Shares (as described in NYSE Arca
Equities Rule 8.600). All ETFs will be listed and traded in the U.S.
on a national securities exchange. While the Fund may invest in
inverse ETFs, the Fund will not invest in leveraged (e.g., 2X, -2X,
3X or -3X) ETFs.
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    The Fund may invest in preferred stock traded on a U.S. or foreign
exchange or OTC.
    The Fund may invest in U.S. or foreign exchange-traded real estate
investment trusts (``REITs''), which are pooled investment vehicles
that invest primarily in either real estate or real estate-related
loans.
    The Fund may invest in registered closed-end investment companies
that invest in foreign securities.
    The Fund may invest in foreign debt securities. Foreign debt
securities may include securities of issuers organized or headquartered
outside the U.S. as well as obligations of supranational entities. The
non-U.S. securities in which the Fund may invest, all or a portion of
which may be non-U.S. dollar-denominated, may include, among other
investments: (i) Debt obligations issued or guaranteed by non-U.S.
national, provincial, state, municipal or other governments or by their
agencies or instrumentalities, including ``Brady Bonds''; (ii) debt
obligations of supranational entities; (iii) debt obligations of the
U.S. government issued in non-dollar securities; (iv) debt obligations
and other fixed-income securities of foreign corporate issuers; and (v)
non-U.S. dollar-denominated securities of U.S. corporate issuers.
    The Fund may engage in foreign currency transactions for both
hedging and investment purposes. Foreign securities in the Fund's
portfolio may be denominated in foreign currencies or traded in
securities markets in which settlements are made in foreign currencies.
    To protect against a change in the foreign currency exchange rate
between the date on which the Fund contracts to purchase or sell a
security and the settlement date for the purchase or sale, to gain
exposure to one or more foreign currencies or to ``lock in'' the
equivalent of a dividend or interest payment in another currency, the
Fund might purchase or sell a foreign currency on a spot (i.e., cash)
basis at the prevailing spot rate.
    The Fund may enter into repurchase agreements.
    The Fund may invest in money market instruments. Money market
instruments are high-quality, short-term

securities. The Fund's money market investments at the time of purchase
(other than U.S. government securities and repurchase agreements
relating thereto) generally will be rated at the time of purchase in
the two highest short-term rating categories as rated by a major credit
agency or, if unrated, will be of comparable quality as determined by
the Sub-Adviser. The Fund may invest in instruments of lesser quality
and do not have any minimum credit quality restriction.
    The Fund may invest in U.S. equity securities (other than
Depositary Receipts) that are traded on a U.S. exchange or OTC.
    To reduce the risk of changes in interest rates and securities
prices, the Fund may purchase securities on a forward commitment or
when-issued or delayed delivery basis, which means delivery and payment
take place a number of days after the date of the commitment to
purchase.
Net Asset Value
    According to the Registration Statement, a Share's NAV will be
determined at the close of regular trading on the New York Stock
Exchange (``NYSE'') on the days the NYSE is open for trading, normally
at 4:00 p.m., Eastern time. Fund securities and other investments for
which market quotations are readily available will be valued at market
value. The Fund may use independent pricing services recommended by the
Adviser and approved by the Board of Trustees to obtain market
quotations.
    Fund securities and other investments will be valued at market
value based on market quotations obtained or determined by independent
pricing services recommended by the Adviser and approved by the Board
of Trustees. Fund securities and other investments for which market
quotations are not readily available, or which are deemed to be
unreliable by the Adviser, will be valued at fair value as determined
in good faith by the Adviser pursuant to procedures approved by the
Board of Trustees, as described below. Market value will be determined
as follows:
    Exchange-listed equity securities will be valued at the last sale
price quoted on the exchange where they are traded most extensively or,
if there is no reported sale during the day, the closing bid quotation.
Securities traded on the NASDAQ Global Select Market, NASDAQ Global
Market and NASDAQ Capital Market are valued at the NASDAQ Official
Closing Price (``NOCP''), or if lacking an NOCP, at the most recent bid
quotations on the applicable NASDAQ Market. OTC equity securities will
be valued at the last sale price quoted in the market where they are
traded most extensively or, if there is no reported sale during the
day, the closing bid quotation as reported by an independent pricing
service. If there is no sale price or closing bid quotation available
unlisted equity securities will be valued using evaluated bids
furnished by an independent pricing service, if available. In some
foreign markets, an official close price and a last sale price may be
available from the foreign exchange or market. In those cases, the
official close price is used. Valuations from foreign markets are
subject to the Fund's fair value policies described below.
    Eurodollar obligations, Yankee dollar obligations, U.S. government
securities, money market instruments, repurchase agreements, foreign
debt securities, certificates of deposit, time deposits, and bankers'
acceptances, will be valued based on evaluated bids furnished to the
Fund by an independent pricing service using market information,
transactions for comparable securities and various relationships
between securities, if available, or bid prices obtained from broker-
dealers.
    Foreign denominated assets and liabilities will be translated into
U.S. dollars based upon foreign exchange rates supplied by an
independent pricing service. Fund securities and other investments for
which market quotations are not readily available will be valued at
fair value as determined in good faith by the Adviser pursuant to
procedures approved by the Board of Trustees. The Fund may also value
securities and other investments at fair value in other circumstances
such as when extraordinary events occur after the close of a foreign
market but prior to the close of the NYSE. This may include situations
relating to a single issuer (such as a declaration of bankruptcy or a
delisting of the issuer's security from the primary market on which it
has traded) as well as events affecting the securities markets in
general (such as market disruptions or closings and significant
fluctuations in U.S. and/or foreign markets).
    Fair value pricing may require subjective determinations about the
value of a security, and fair values used to determine the Fund's NAV
may differ from quoted or published prices, or from prices that are
used by others, for the same securities. In addition, the use of fair
value pricing may not always result in adjustments to the prices of
securities held by the Fund. Valuations for securities traded in the
OTC market may be based on factors such as market information,
transactions for comparable securities, and various relationships
between securities or bid prices obtained from broker-dealers.
Evaluated prices from an independent pricing service may require
subjective determinations and may be different than actual market
prices or prices provided by other pricing services.
    Trading in some of the portfolio securities or other investments of
the Fund takes place in various markets outside the United States on
days and at times other than when the NYSE is open for trading.
Therefore, the calculation of the Fund's NAV does not take place at the
same time as the prices of many of its portfolio securities or other
investments are determined, and the value of the Fund's portfolio may
change on days when the Fund is not open for business and its shares
may not be purchased or redeemed.
    Investment company securities that are not exchange-traded will be
valued at NAV.
Creation and Redemption of Shares
    According to the Registration Statement, Shares of the Fund will be
``created'' at NAV by market makers, large investors and institutions
only in block-size ``Creation Units'' of 50,000 Shares or multiples
thereof. The size of a Creation Unit is subject to change. Each
``creator'' or ``Authorized Participant'' will enter into an authorized
participant agreement with the Fund's distributor.
    A creation transaction, which is subject to acceptance by the
Fund's distributor, generally takes place when an Authorized
Participant deposits into the Fund a designated portfolio of securities
(including any portion of such securities for which cash may be
substituted) and a specified amount of cash approximating the holdings
of the Fund in exchange for a specified number of creation units.
    Similarly, Shares can be redeemed only in Creation Units, generally
for a designated portfolio of securities (including any portion of such
securities for which cash may be substituted) held by the Fund and a
specified amount of cash. Except when aggregated in Creation Units,
Shares will not be redeemable by the Fund.
    The prices at which creations and redemptions occur are based on
the next calculation of NAV after a creation or redemption order is
received in an acceptable form under the Authorized Participant
agreement.
    Only an Authorized Participant may create or redeem creation units
directly with the Fund.

    Creations and redemptions must be made through a firm that is
either a member of the Continuous Net Settlement System of the National
Securities Clearing Corporation or a DTC participant and has executed
an agreement with the Fund's distributor with respect to creations and
redemptions of Creation Units.
    The consideration for purchase of Creation Units generally will
consist of Deposit Securities and the Cash Component, which will
generally correspond pro rata, to the extent practicable, to the Fund
securities, or, as permitted by the Fund, the Cash Deposit. Together,
the Deposit Securities and the Cash Component or, alternatively, the
Cash Deposit, constitute the ``Fund Deposit,'' which represents the
minimum initial and subsequent investment amount for a Creation Unit of
the Fund. The portfolio of securities required may, in certain limited
circumstances, be different than the portfolio of securities the Fund
will deliver upon redemption of Fund Shares.
    The function of the Cash Component is to compensate for any
differences between the NAV per Creation Unit and the ``Deposit
Amount'' (as defined below). The Cash Component would be an amount
equal to the difference between the NAV of the shares (per Creation
Unit) and the ``Deposit Amount,'' which is an amount equal to the
market value of the Deposit Securities. If the Cash Component is a
positive number (the NAV per Creation Unit exceeds the Deposit Amount),
the Authorized Participant will deliver the Cash Component. If the Cash
Component is a negative number (the NAV per Creation Unit is less than
the Deposit Amount), the Authorized Participant will receive the Cash
Component. Computation of the Cash Component excludes any stamp duty or
other similar fees and expenses payable upon transfer of beneficial
ownership of the Deposit Securities, which shall be the sole
responsibility of the Authorized Participant. The Cash Component may
also include a ``Dividend Equivalent Payment,'' which enables the Fund
to make a complete distribution of dividends on the next dividend
payment date. State Street Bank and Trust Company, through the National
Securities Clearing Corporation (``NSCC''), will make available on each
business day, prior to the opening of business (subject to amendments)
on the Exchange (currently 9:30 a.m., Eastern time), the identity and
the required number of each Deposit Security and the amount of the Cash
Component to be included in the current Fund Deposit (based on
information at the end of the previous business day).
    Shares may be redeemed only in Creation Units at their NAV next
determined after receipt of a redemption request in proper form on a
business day and only through a Participating Party or DTC Participant
who has executed a Participant Agreement. State Street, through the
NSCC, will make available immediately prior to the opening of business
on the Exchange (currently 9:30 a.m., Eastern time) on each business
day, the identity of the Fund's securities and/or an amount of cash
that will be applicable (subject to possible amendment or correction)
to redemption requests received in proper form on that day. All orders
are subject to acceptance by the Transfer Agent. The Fund's securities
received on redemption will generally correspond pro rata, to the
extent practicable, to such Fund's securities. The Fund's securities
received on redemption (``Fund Securities'') may not be identical to
Deposit Securities that are applicable to creations of Creation Units.
    Unless cash only redemptions are available or specified for the
Fund, the redemption proceeds for a Creation Unit will generally
consist of Fund Securities--as announced on the business day of the
request for a redemption order received in proper form--plus cash in an
amount equal to the difference between the NAV of the shares being
redeemed, as next determined after a receipt of a request in proper
form, and the value of the Fund Securities, less the redemption
transaction fee and variable fees described below.\11\ Notwithstanding
the foregoing, the Trust will substitute a ``cash-in-lieu'' amount to
replace any Fund Security that is a non-deliverable instrument. The
Trust may permit a ``cash-in-lieu'' amount for any reason at the
Trust's sole discretion but is not required to do so. The amount of
cash paid out in such cases will be equivalent to the value of the
instrument listed as a Fund Security. In the event that the Fund
Securities have a value greater than the NAV of the shares, a
compensating cash payment equal to the difference.
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    \11\ The Adviser represents that, to the extent the Trust
effects the creation or redemption of Shares in cash, such
transactions will be effected in the same manner for all Authorized
Participants.
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    The right of redemption may be suspended or the date of payment
postponed with respect to the Fund: (i) For any period during which the
Exchange is closed (other than customary weekend and holiday closings);
(ii) for any period during which trading on the Exchange is suspended
or restricted; (iii) for any period during which an emergency exists as
a result of which disposal by the Fund of securities it owns or
determination of the Fund's NAV is not reasonably practicable; or (iv)
in such other circumstances as permitted by the Commission.
Investment Restrictions
    As a temporary defensive measure, the Fund may hold any portion of
its assets in cash (U.S. dollars, foreign currencies or multinational
currency units) and/or invest in money market instruments or high-
quality debt securities as it deems appropriate.
    The Fund intends to maintain the required level of diversification
and otherwise conduct its operations so as to qualify as a ``regulated
investment company'' for purposes of the Internal Revenue Code of
1986.\12\
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    \12\ 26 U.S.C. 851.
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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). 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.\13\
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    \13\ The Commission has stated that long-standing Commission
guidelines have required open-end funds to hold no more than 15% of
their net assets in illiquid securities and other illiquid assets.
See Investment Company Act Release No. 28193 (March 11, 2008), 73 FR
14618 (March 18, 2008), footnote 34. See also, Investment Company
Act Release No. 5847 (October 21, 1969), 35 FR 19989 (December 31,
1970) (Statement Regarding ``Restricted Securities''); Investment
Company Act Release No. 18612 (March 12, 1992), 57 FR 9828 (March
20, 1992) (Revisions of Guidelines to Form N-1A). A fund's portfolio
security is illiquid if it cannot be disposed of in the ordinary
course of business within seven days at approximately the value
ascribed to it by the fund. See Investment Company Act Release No.
14983 (March 12, 1986), 51 FR 9773 (March 21, 1986) (adopting
amendments to Rule 2a-7 under the 1940 Act); Investment Company Act
Release No. 17452 (April 23, 1990), 55 FR 17933 (April 30, 1990)
(adopting Rule 144A under the 1933 Act).
---------------------------------------------------------------------------

    The Fund will not invest in options, futures or swaps.
    The Fund's investments will be consistent with the Fund's
investment objective and will not be used to

enhance leverage. That is, while the Fund will be permitted to borrow
as permitted under the 1940 Act, the Fund's investments will not be
used to seek performance that is the multiple or inverse multiple
(i.e., 2Xs and 3Xs) of the Fund's primary broad-based securities
benchmark index (as defined in Form N-1A).\14\
---------------------------------------------------------------------------

    \14\ The Fund's broad-based securities benchmark index will be
identified in a future amendment to the Registration Statement
following the Fund's first full calendar year of performance.
---------------------------------------------------------------------------

Availability of Information
    The Fund's Web site, 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 Fund's Web site will include
additional quantitative information updated on a daily basis,
including, for the Fund (1) daily trading volume, the prior business
day's reported closing price, NAV and mid-point of the bid/ask spread
at the time of calculation of such NAV (the ``Bid/Ask Price''),\15\ 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 Core Trading Session on the Exchange, the
Fund will disclose on its Web site the Disclosed Portfolio as defined
in NYSE Arca Equities Rule 8.600(c)(2) that will form the basis for the
Fund's calculation of NAV at the end of the business day.\16\
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    \15\ The Bid/Ask Price of Shares 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
their service providers.
    \16\ Under accounting procedures 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.
---------------------------------------------------------------------------

    On a daily basis, the Fund will disclose for each portfolio
security or other financial instrument of the Fund the following
information on the Fund's Web site: Ticker symbol (if applicable), name
of security and financial instrument, number of shares and dollar value
of financial instruments held in the portfolio, and percentage
weighting of the security and financial instrument in the portfolio.
The Web site information will be publicly available at no charge.
    In addition, a basket composition file, which includes the security
names and share quantities required to be delivered in exchange for the
Fund's Shares, together with estimates and actual cash components, will
be publicly disseminated daily prior to the opening of the NYSE via
NSCC. The basket represents one Creation Unit of the Fund.
    In order to provide additional information regarding the indicative
value of Shares of the Fund, the Exchange or a market data vendor will
disseminate every 15 seconds through the facilities of the Consolidated
Tape Association, or through other widely disseminated means, an
updated IIV for the Fund as calculated by an information provider or
market data vendor.
    The Fund's IIV will be based on the current market value of the
Fund's portfolio holdings that will form the basis of the Fund's
calculation of NAV at the end of the business day as disclosed on the
Fund's Web site prior to the business day's commencement of trading.
    Investors can also obtain the Trust's Statement of Additional
Information (``SAI''), the Fund's Shareholder Reports, and the Trust's
Form N-CSR and Form N-SAR, filed twice a year. The Trust's SAI and
Shareholder Reports are available free upon request from the Trust, 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 the Consolidated Tape Association
(``CTA'') high-speed line. With respect to U.S. exchange-listed equity
securities, the intra-day, closing and settlement prices of common
stocks and exchange-traded equity securities (including shares of
preferred securities, closed-end funds, REITs and U.S. exchange-listed
Depositary Receipts) will be readily available from the national
securities exchanges trading such securities, automated quotation
systems, published or other public sources, or on-line information
services such as Bloomberg or Reuters. With respect to non-U.S.
exchange-listed equity securities, intra-day, closing and settlement
prices of common stocks and other equity securities (including shares
of preferred securities, and non-U.S. Depositary Receipts), will be
available from the foreign exchanges on which such securities trade as
well as from major market data vendors. Pricing information regarding
each asset class in which the Fund will invest will generally be
available through nationally recognized data service providers through
subscription arrangements. Quotation information from brokers and
dealers or pricing services will be available for Eurodollar
obligations, Yankee dollar obligations, U.S. government securities,
repurchase agreements, money market instruments, foreign debt
securities, certificates of deposit, time deposits, and bankers'
acceptances; unsponsored Depositary Receipts; and spot currency
transactions held by the Fund. In addition, IIV,\17\ which is the
Portfolio Indicative Value as defined in NYSE Arca Equities Rule 8.600
(c)(3), will be widely disseminated at least every 15 seconds during
the Exchange's Core Trading Session by one or more major market data
vendors.\18\ The dissemination of the IIV, together with the Disclosed
Portfolio, will allow investors to determine the value of the
underlying portfolio of the Fund on a daily basis and to provide a
close estimate of that value throughout the trading day.
---------------------------------------------------------------------------

    \17\ The IIV calculation will be an estimate of the value of the
Fund's NAV per Share using market data converted into U.S. dollars
at the current currency rates. The IIV price 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 IIV and the market price of the
Shares may occur. This should not be viewed as a ``real-time''
update of the NAV per Share of the Fund, which will be calculated
only once a day.
    \18\ Currently, it is the Exchange's understanding that several
major market data vendors display and/or make widely available IIVs
taken from CTA or other data feeds.
---------------------------------------------------------------------------

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.\19\ Trading in Shares of the Fund
will be halted if the circuit breaker parameters in NYSE Arca Equities
Rule 7.12 have been reached. Trading also may be halted because of
market conditions or for reasons that, in the view of the Exchange,
make trading in the Shares inadvisable. These may include: (1) The
extent to which trading is not occurring in the securities and/or the
financial instruments comprising 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 will be subject to NYSE Arca
Equities Rule 8.600(d)(2)(D), which sets forth circumstances under
which Shares of the Fund may be halted.
---------------------------------------------------------------------------

    \19\ See NYSE Arca Equities Rule 7.12.
---------------------------------------------------------------------------

Trading Rules
    The Exchange deems the Shares to be equity securities, thus
rendering trading in the Shares subject to the Exchange's existing
rules governing the trading of equity securities. Shares will trade on
the NYSE Arca Marketplace from 4:00 a.m. to 8:00 p.m. Eastern time in
accordance with NYSE Arca Equities Rule 7.34 (Opening, Core, and Late
Trading Sessions). The Exchange has appropriate rules to facilitate
transactions in the Shares during all trading sessions. As provided in
NYSE Arca Equities Rule 7.6, Commentary .03, the minimum price
variation (``MPV'') for quoting and entry of orders in equity
securities traded on the NYSE Arca Marketplace is $0.01, with the
exception of securities that are priced less than $1.00 for which the
MPV for order entry is $0.0001.
    The Shares will conform to the initial and continued listing
criteria under NYSE Arca Equities Rule 8.600. The Exchange represents
that, for initial and/or continued listing, the Fund will be in
compliance with Rule 10A-3 \20\ under the Act, as provided by NYSE Arca
Equities Rule 5.3. A minimum of 100,000 Shares for the Fund will be
outstanding at the commencement of trading on the Exchange. The
Exchange will obtain a representation from the issuer of the Shares
that the NAV per Share will be calculated daily and that the NAV and
the Disclosed Portfolio will be made available to all market
participants at the same time.
---------------------------------------------------------------------------

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

Surveillance
    The Exchange represents that trading in the Shares will be subject
to the existing trading surveillances, administered by the Exchange or
Financial Industry Regulatory Authority (``FINRA'') on behalf of the
Exchange, which are designed to detect violations of Exchange rules and
applicable federal securities laws.\21\ The Exchange represents that
these procedures are adequate to properly monitor Exchange trading of
the Shares in all trading sessions and to deter and detect violations
of Exchange rules and federal securities laws applicable to trading on
the Exchange.
---------------------------------------------------------------------------

    \21\ FINRA conducts cross-market surveillances on behalf of 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.
    The Exchange or FINRA, on behalf of the Exchange, will communicate
as needed regarding trading in the Shares and certain exchange-traded
securities underlying the Shares with other markets and other entities
that are members of the Intermarket Surveillance Group (``ISG''), and
the Exchange or FINRA, on behalf of the Exchange, may obtain trading
information regarding trading in the Shares and certain exchange-traded
securities underlying the Shares from such markets and other entities.
In addition, the Exchange may obtain information regarding trading in
the Shares and certain exchange-traded securities underlying the Shares
from markets and other entities that are members of ISG or with which
the Exchange has in place a comprehensive surveillance sharing
agreement.\22\ The Exchange is able to access from FINRA, as needed,
trade information for certain fixed income securities held by the Fund
reported to FINRA's Trade Reporting and Compliance Engine (``TRACE'').
---------------------------------------------------------------------------

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

    Not more than 10% of the net assets of the Fund in the aggregate
invested in equity securities (other than non-exchange-traded
investment company securities) shall consist of equity securities whose
principal market is not a member of the ISG or is a market with which
the Exchange does not have a comprehensive surveillance sharing
agreement.
    In addition, the Exchange also has a general policy prohibiting the
distribution of material, non-public information by its employees.
    All statements and representations made in this filing regarding
(a) the description of the portfolio, (b) limitations on portfolio
holdings or reference assets, or (c) the applicability of Exchange
rules and surveillance procedures shall constitute continued listing
requirements for listing the Shares on the Exchange.
    The issuer has represented to the Exchange that it will advise the
Exchange of any failure by the Fund to comply with the continued
listing requirements, and, pursuant to its obligations under Section
19(g)(1) of the Act, the Exchange will monitor for compliance with the
continued listing requirements. If the Fund is not in compliance with
the applicable listing requirements, the Exchange will commence
delisting procedures under NYSE Arca Equities Rule 5.5(m).
Information Bulletin
    Prior to the commencement of trading, the Exchange will inform its
Equity Trading Permit Holders in an Information Bulletin (``Bulletin'')
of the special characteristics and risks associated with trading the
Shares. Specifically, the Bulletin will discuss the following: (1) The
procedures for purchases and redemptions of Shares in Creation Unit
aggregations (and that Shares are not individually redeemable); (2)
NYSE Arca Equities Rule 9.2(a), which imposes a duty of due diligence
on its Equity Trading Permit Holders to learn the essential facts
relating to every customer prior to trading the Shares; (3) the risks
involved in trading the Shares during the Opening and Late Trading
Sessions when an updated Portfolio Indicative Value will not be
calculated or publicly disseminated; (4) how information regarding the
Portfolio Indicative Value and the Disclosed Portfolio is disseminated;
(5) the requirement that Equity Trading Permit Holders 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 Bulletin will reference that the Fund is subject
to various fees and expenses described in the Registration Statement.
The Bulletin will discuss any exemptive, no-action, and interpretive
relief granted by the Commission from any rules under the Act. The
Bulletin will also disclose that the NAV for the Shares will be
calculated after 4:00 p.m. Eastern time each trading day.
2. Statutory Basis
    The basis under the Act for this proposed rule change is the
requirement under Section 6(b)(5) \23\ that an exchange have rules that
are designed to prevent fraudulent and manipulative acts and practices,
to promote just and equitable principles of trade, to remove

impediments to, and perfect the mechanism of a free and open market
and, in general, to protect investors and the public interest.
---------------------------------------------------------------------------

    \23\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange believes that the proposed rule change is designed to
prevent fraudulent and manipulative acts and practices in that the
Shares will be listed and traded on the Exchange pursuant to the
initial and continued listing criteria in NYSE Arca Equities Rule
8.600. The Exchange has in place surveillance procedures that are
adequate to properly monitor trading in the Shares in all trading
sessions and to deter and detect violations of Exchange rules and
applicable federal securities laws. The Adviser has implemented a
``fire wall'' with respect to its affiliated broker-dealer regarding
access to information concerning the composition and/or changes to the
Fund's portfolio. The Exchange or FINRA, on behalf of the Exchange,
will communicate as needed regarding trading in the Shares and certain
exchange-traded securities underlying the Shares with other markets and
other entities that are members of the ISG, and the Exchange or FINRA,
on behalf of the Exchange, may obtain trading information regarding
trading in the Shares and certain exchange-traded securities underlying
the Shares from such markets and other entities. In addition, the
Exchange may obtain information regarding trading in the Shares and
certain exchange-traded securities underlying the Shares from markets
and other entities that are members of ISG or with which the Exchange
has in place a CSSA. The Exchange is able to access from FINRA, as
needed, trade information for certain fixed income securities held by
the Fund reported to FINRA's TRACE. The Fund may hold up to an
aggregate amount of 15% of its net assets in illiquid assets
(calculated at the time of investment. The Fund will not invest in
options, futures or swaps. The Fund's investments will be consistent
with its investment objective and will not be used to enhance leverage.
    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 is publicly available regarding the Fund and the Shares,
thereby promoting market transparency. The Fund's portfolio holdings
will be disclosed on its Web site daily after the close of trading on
the Exchange and prior to the opening of trading on the Exchange the
following day. Moreover, the IIV will be widely disseminated by one or
more major market data vendors at least every 15 seconds during the
Exchange's Core Trading Session. Not more than 10% of the net assets of
the Fund in the aggregate invested in equity securities (other than
non-exchange-traded investment company securities) shall consist of
equity securities whose principal market is not a member of the ISG or
is a market with which the Exchange does not have a comprehensive
surveillance sharing agreement. On each business day, before
commencement of trading in Shares in the Core Trading 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 will be
available via the CTA high-speed line. The Web site for the Fund will
include a form of the prospectus for the Fund and additional data
relating to NAV and other applicable quantitative information.
Moreover, prior to the commencement of trading, the Exchange will
inform its Equity Trading Permit Holders in an Information Bulletin of
the special characteristics and risks associated with trading the
Shares. Trading in Shares of the Fund will be halted if the circuit
breaker parameters in NYSE Arca Equities Rule 7.12 have been reached or
because of market conditions or for reasons that, in the view of the
Exchange, make trading in the Shares inadvisable, and trading in the
Shares will be subject to NYSE Arca Equities Rule 8.600(d)(2)(D), which
sets forth circumstances under which Shares of the Fund may be halted.
The intra-day, closing and settlement prices of the portfolio
securities are also readily available from the national securities
exchanges trading such securities, automated quotation systems,
published or other public sources, or on-line information services. In
addition, as noted above, investors will have ready access to
information regarding the Fund's holdings, the IIV, 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, the Exchange has in
place surveillance procedures relating to trading in the Shares and may
obtain information via ISG from other exchanges that are members of ISG
or with which the Exchange has entered into a comprehensive
surveillance sharing agreement. In addition, as noted above, investors
will have ready access to information regarding the Fund's holdings,
the IIV, the Disclosed Portfolio, and quotation and last sale
information for the Shares.

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

    The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purpose of the Act. The Exchange notes that the
proposed rule change will facilitate the listing and trading of an
actively-managed exchange-traded product that will principally hold non
U.S. equity securities and 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

    No written comments were solicited or received with respect to the
proposed rule change.

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

    Within 45 days of the date of publication of this notice in the
Federal Register or up to 90 days (i) as the Commission may designate
if it finds such longer period to be appropriate and publishes its
reasons for so finding or (ii) as to which the self-regulatory
organization consents, the Commission will:
    (A) By order approve or disapprove the 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-NYSEArca-2016-67 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NYSEArca-2016-67. 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 offices of the Exchange and
on its Internet Web site at www.nyse.com. All comments received will be
posted without change; the Commission does not edit personal
identifying information from submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-NYSEArca-2016-67, and should be
submitted on or before June 15, 2016.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\24\
---------------------------------------------------------------------------

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

Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-12242 Filed 5-24-16; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 83, Number 195 (Tuesday, October 9, 2018)]
[Notices]
[Pages 50656-50658]
[FR Doc No: 2018-21778]

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

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket Nos. CP17-20-000; CP17-21-000; CP17-21-001; CP18-7-000]

Notice of Availability of the Draft Environmental Impact
Statement for the Proposed Port Arthur Liquefaction Project, Texas
Connector Project, and Louisiana Connector Project: Port Arthur LNG,
LLC, PALNG Common Facilities Company LLC, Port Arthur Pipeline, LLC

    The staff of the Federal Energy Regulatory Commission (FERC or
Commission) has prepared a draft environmental impact statement (EIS)
for the Port Arthur Liquefaction Project proposed by Port Arthur LNG,
LLC and PALNG Common Facilities Company LLC (collectively referred to
as PALNG), and the Texas Connector Project and Louisiana Connector
Project proposed by Port Arthur Pipeline, LLC (PAPL) in the above-
referenced dockets. PALNG requests authorization pursuant to section
3(a) of the Natural Gas Act (NGA) to construct and operate liquefied
natural gas (LNG) export facilities in Jefferson County, Texas, and
PAPL requests a Certificate of Public Convenience and Necessity
pursuant to section 7(c) of the NGA to construct, operate, and maintain
certain natural gas pipeline facilities in Jefferson and Orange
Counties, Texas and Cameron, Calcasieu, Beauregard, Allen, Evangeline,
and St. Landry Parishes, Louisiana. Together, these proposed facilities
are referred to as ``the Projects.''
    The draft EIS assesses the potential environmental effects of the
construction and operation of the Projects in accordance with the
requirements of the National Environmental Policy Act (NEPA). The FERC
staff concludes that approval of the proposed Projects, with the
mitigation measures recommended in the EIS, would have some adverse
environmental impact; however, these impacts would be avoided or
reduced to less-than-significant levels.
    The U.S. Army Corps of Engineers, U.S. Coast Guard, U.S. Department
of Energy, U.S. Environmental Protection Agency, and the U.S.
Department of Transportation's Pipeline and Hazardous Materials Safety
Administration participated as cooperating agencies in the preparation
of the EIS. Cooperating agencies have jurisdiction by law or special
expertise with respect to resources potentially affected by the
proposal and participate in the NEPA analysis. Although the cooperating
agencies provided input to the conclusions and recommendations
presented in the draft EIS, the agencies will present their own
conclusions and recommendations in their respective Records of Decision
for the Projects.
    The draft EIS addresses the potential environmental effects of the
construction and operation of the following proposed facilities:
     Two liquefaction trains, each with a capacity of 6.73
million tons per annum of LNG for export;
     Three LNG storage tanks, each with a capacity of 160,000
cubic meters;
     A refrigerant storage area and truck unloading facilities;
     A condensate storage area and truck loading facilities;
     A new marine slip with two LNG vessel berths, an LNG
vessel and support vessel maneuvering area, and an LNG transfer system;
     A materials off-loading facility and Pioneer Dock;
     Approximately 34.2 miles of 42-inch-diameter pipeline to
bring feed gas from interconnections with Kinder Morgan Louisiana
Pipeline LLC, Natural Gas Pipeline Company of America, Houston Pipeline
Company LP, Texas Eastern Transmission, LP (TETCO), Florida Gas
Transmission Company, LLC, and Golden Triangle Storage, Inc./Centana
Intrastate Pipeline, LLC to the terminal site;
     Approximately 130.8 miles of 42-inch-diameter pipeline to
bring feed gas from interconnections with Centana Interstate Pipeline,
LP, TETCO, Tennessee Gas Pipeline Company, Market Hub Partners--Egan,
Pine Prairie Energy Center, Texas Gas Transmission, LLC, ANR Pipeline
Company, and Columbia Gulf Transmission, LLC to the terminal site;
     Three compressor stations;
     Meter stations at the pipeline interconnects; and
     Other associated utilities, systems, and facilities
(yards, access roads, etc.).
    The Commission mailed a copy of the Notice of Availability to
federal, state,

and local government representatives and agencies; elected officials;
environmental and public interest groups; Native American tribes;
potentially affected landowners and other interested individuals and
groups; and newspapers and libraries in the project area. The draft EIS
is only available in electronic format. It may be viewed and downloaded
from the FERC's website (www.ferc.gov), on the Environmental Documents
page (https://www.ferc.gov/industries/gas/enviro/eis.asp). In addition,
the draft EIS may be accessed by using the eLibrary link on the FERC's
website. Click on the eLibrary link (https://www.ferc.gov/docs-filing/elibrary.asp), click on General Search, and enter the docket number in
the ``Docket Number'' field, excluding the last three digits (i.e.
CP17-20, CP17-21, or CP18-7). Be sure you have selected an appropriate
date range. For assistance, please contact FERC Online Support at
[email protected] or toll free at<PHONE_NUMBER>, or for TTY,
contact<PHONE_NUMBER>.
    Any person wishing to comment on the draft EIS may do so. Your
comments should focus on draft EIS's disclosure and discussion of
potential environmental effects, reasonable alternatives, and measures
to avoid or lessen environmental impacts. To ensure consideration of
your comments on the proposal in the final EIS, it is important that
the Commission receive your comments on or before 5:00 p.m. Eastern
Time on November 19, 2018.
    For your convenience, there are four methods you can use to submit
your comments to the Commission. The Commission will provide equal
consideration to all comments received, whether filed in written form
or provided verbally. The Commission encourages electronic filing of
comments and has staff available to assist you at<PHONE_NUMBER> or
[email protected]. Please carefully follow these instructions
so that your comments are properly recorded.
    (1) You can file your comments electronically using the eComment
feature on the Commission's website (www.ferc.gov) under the link to
Documents and Filings. This is an easy method for submitting brief,
text-only comments on a project;
    (2) You can file your comments electronically by using the eFiling
feature on the Commission's website (www.ferc.gov) under the link to
Documents and Filings. With eFiling, you can provide comments in a
variety of formats by attaching them as a file with your submission.
New eFiling users must first create an account by clicking on
``eRegister.'' If you are filing a comment on a particular project,
please select ``Comment on a Filing'' as the filing type; or
    (3) You can file a paper copy of your comments by mailing them to
the following address. Be sure to reference the Projects docket numbers
(CP17-20-000, CP17-21-000, and CP18-7-000) with your submission:
Kimberly D. Bose, Secretary, Federal Energy Regulatory Commission, 888
First Street NE, Room 1A, Washington, DC 20426.
    (4) In lieu of sending written or electronic comments, the
Commission invites you to attend one of the public comment sessions its
staff will conduct in the Projects area to receive comments on the
draft EIS, scheduled as follows:

------------------------------------------------------------------------
           Date and time                          Location
------------------------------------------------------------------------
Tuesday, October 16, 2018, 4:00-    Coushatta Golf Course, Veranda Room,
 7:00 p.m. local time.               777 Koasati Dr., Kinder, LA 70648,
<PHONE_NUMBER>.
Wednesday, October 17, 2018, 4:00-  Hampton Inn & Suites, Meeting Room,
 7:00 p.m. local time.               7660 Memorial Blvd., Port Arthur,
                                     TX 77642,<PHONE_NUMBER>.
Thursday, October 18, 2018, 4:00-   Holiday Inn Lake Charles W--Sulphur,
 7:00 p.m. local time.               Ballrooms 1, 2, and 3, 330 Arena
                                     Rd., Sulphur, LA 70665, 337-527-
                                     0858.
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    The primary goal of these comment sessions is to have you identify
the specific environmental issues and concerns with the draft EIS.
Individual verbal comments will be taken on a one-on-one basis with a
court reporter. This format is designed to receive the maximum amount
of verbal comments in a convenient way during the timeframe allotted.
    Each scoping session is scheduled from 4:00 p.m. to 7:00 p.m. local
time. You may arrive at any time after 4:00 p.m. There will not be a
formal presentation by Commission staff when the session opens. If you
wish to speak, the Commission staff will hand out numbers in the order
of your arrival. Comments will be taken until 7:00 p.m. However, if no
additional numbers have been handed out and all individuals who wish to
provide comments have had an opportunity to do so, staff may conclude
the session at 6:30 p.m. Please see appendix 1 for additional
information on the session format and conduct.\1\
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    \1\ The appendices referenced in this notice will not appear in
the Federal Register. Copies of the appendices were sent to all
those receiving this notice in the mail and are available at
www.ferc.gov using the link called ``eLibrary'' or from the
Commission's Public Reference Room, 888 First Street NE, Washington,
DC 20426, or call<PHONE_NUMBER>. For instructions on connecting to
eLibrary, refer to the last page of this notice.
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    Your verbal comments will be recorded by the court reporter (with
FERC staff or representative present) and become part of the public
record for this proceeding. Transcripts will be publicly available on
FERC's eLibrary system (see below for instructions on using eLibrary).
If a significant number of people are interested in providing verbal
comments in the one-on-one settings, a time limit of 5 minutes may be
implemented for each commentor.
    It is important to note that verbal comments hold the same weight
as written or electronically submitted comments. Although there will
not be a formal presentation, Commission staff will be available
throughout the comment session to answer your questions about the
environmental review process.
    Any person seeking to become a party to the proceeding must file a
motion to intervene pursuant to Rule 214 of the Commission's Rules of
Practice and Procedures (18 CFR part 385.214). Motions to intervene are
more fully described at http://www.ferc.gov/resources/guides/how-to/intervene.asp. Only intervenors have the right to seek rehearing or
judicial review of the Commission's decision. The Commission grants
affected landowners and others with environmental concerns intervenor
status upon showing good cause by stating that they have a clear and
direct interest in this proceeding that no other party can adequately
represent. Simply filing environmental comments will not give you
intervenor status, but you do not need intervenor status to have your
comments considered.

Questions?

    Additional information about the Projects is available from the
Commission's Office of External Affairs, at (866) 208-FERC, or on the
FERC website (www.ferc.gov) using the eLibrary link. The eLibrary link
also provides access to the texts of all formal documents issued by the
Commission, such as orders, notices, and rulemakings.
    In addition, the Commission offers a free service called
eSubscription that allows you to keep track of all formal issuances and
submittals in specific dockets. This can reduce the amount of time you
spend researching proceedings by automatically providing you with
notification of these filings, document summaries, and direct links to
the documents. Go to www.ferc.gov/docs-filing/esubscription.asp.

    Dated: September 28, 2018.
Kimberly D. Bose,
Secretary.
[FR Doc. 2018-21778 Filed 10-5-18; 8:45 am]
BILLING CODE 6717-01-P