[Federal Register Volume 81, Number 20 (Monday, February 1, 2016)]
[Notices]
[Pages 5149-5158]
[FR Doc No: 2016-01714]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76974; File No. SR-NYSEArca-2015-110]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
of Amendment No. 2 to Proposed Rule Change Amending NYSE Arca Equities
Rule 8.600 To Adopt Generic Listing Standards for Managed Fund Shares

January 26, 2016.
    On November 6, 2015, NYSE Arca, Inc. (``Exchange'' or ``NYSE
Arca'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change to adopt generic listing standards for Managed
Fund Shares. The proposed rule change was published for comment in the
Federal Register on November 27, 2015.\3\ On November 23, 2015, after
issuance of the Notice but before its publication, the Exchange filed
Amendment No. 1 to the

proposed rule change.\4\ On January 4, 2016, pursuant to section
19(b)(2) of the Act,\5\ the Commission designated a longer period
within which to approve the proposed rule change, disapprove the
proposed rule change, or institute proceedings to determine whether to
disapprove the proposed rule change.\6\ The Commission has received one
comment on the proposal.\7\
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 76486 (Nov. 20,
2015), 80 FR 74169 (``Notice'').
    \4\ The Exchange withdrew this amendment on January 21, 2016.
See infra note 10.
    \5\ 15 U.S.C. 78s(b)(2).
    \6\ See Securities Exchange Act Release No. 76819, 81 FR 987
(Jan. 8, 2016).
    \7\ See letter from Rob Ivanoff to the Commission dated Nov. 22,
2015, available at: http://www.sec.gov/comments/sr-nysearca-2015-110/nysearca2015110.shtml.
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    Pursuant to section 19(b)(1) of the Act \8\ and Rule 19b-4
thereunder,\9\ notice is hereby given that, on January 21, 2016, the
Exchange filed with the Commission Amendment No. 2 to the proposed rule
change as described in Items I and II below, which Items have been
prepared by the Exchange. Amendment No. 2 replaces and supersedes the
proposed rule change as originally filed. The Commission is publishing
this notice to solicit comments from interested persons on Amendment
No. 2.
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    \8\ 15 U.S.C. 78s(b)(1).
    \9\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to amend NYSE Arca Equities Rule 8.600 to
adopt generic listing standards for 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 amend NYSE Arca Equities Rule 8.600 to
adopt generic listing standards for Managed Fund Shares. Under the
Exchange's current rules, a proposed rule change must be filed with the
Securities and Exchange Commission (``SEC'' or ``Commission'') for the
listing and trading of each new series of Managed Fund Shares. The
Exchange believes that it is appropriate to codify certain rules within
Rule 8.600 that would generally eliminate the need for such proposed
rule changes, which would create greater efficiency and promote uniform
standards in the listing process.\10\
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    \10\ The Exchange has previously filed a proposed rule change to
amend NYSE Arca Equities Rule 8.600 to adopt generic listing
standards for Managed Fund Shares. See Securities Exchange Act
Release No. 74433 (March 4, 2015), 80 FR 12690 (March 10, 2015) (SR-
NYSEArca-2015-02). On June 3, 2015, the Exchange filed Amendment No.
1 to the proposed rule change. See Securities Exchange Act Release
No. 75115 (June 5, 2015), 80 FR 33309 (June 11, 2015). On October
13, 2015, the Exchange withdrew the proposed rule change. See
Securities Exchange Act Release No. 76186 (October 19, 2015), 80 FR
64461 (October 23, 2015). This Amendment No. 2 to SR-NYSEArca-2015-
110 replaces SR-NYSEArca-2015-110 as originally filed and supersedes
such filing in its entirety. The Exchange has withdrawn Amendment
No. 1 to SR-NYSEArca-2015-110.
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Background
    Rule 8.600 sets forth certain rules related to the listing and
trading of Managed Fund Shares.\11\ Under Rule 8.600(c)(1), the term
``Managed Fund Share'' means a security that:
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    \11\ See Securities Exchange Act Release No. 57619 (April 4,
2008), 73 FR 19544 (April 10, 2008) (SR-NYSEArca-2008-25) (order
approving NYSE Arca Equities Rule 8.600 and listing and trading of
shares of certain issues of Managed Fund Shares) (the ``Approval
Order''). The Approval Order approved the rules permitting the
listing and trading of Managed Fund Shares, trading hours and halts,
listing fees applicable to Managed Fund Shares, and the listing and
trading of several individual series of Managed Fund Shares.
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    (a) Represents an interest in a registered investment company
(``Investment Company'') organized as an open-end management investment
company or similar entity, that invests in a portfolio of securities
selected by the Investment Company's investment adviser (hereafter
``Adviser'') consistent with the Investment Company's investment
objectives and policies;
    (b) is issued in a specified aggregate minimum number in return for
a deposit of a specified portfolio of securities and/or a cash amount
with a value equal to the next determined net asset value; and
    (c) when aggregated in the same specified minimum number, may be
redeemed at a holder's request, which holder will be paid a specified
portfolio of securities and/or cash with a value equal to the next
determined net asset value.
    Effectively, Managed Fund Shares are securities issued by an
actively-managed open-end Investment Company (i.e., an actively-managed
exchange-traded fund (``ETF'')). Because Managed Fund Shares are
actively-managed, they do not seek to replicate the performance of a
specified passive index of securities. Instead, they generally use an
active investment strategy to seek to meet their investment objectives.
In contrast, an open-end Investment Company that issues Investment
Company Units (``Units''), listed and traded on the Exchange pursuant
to NYSE Arca Equities Rule 5.2(j)(3), seeks to provide investment
results that generally correspond to the price and yield performance of
a specific foreign or domestic stock index, fixed income securities
index or combination thereof.
    All Managed Fund Shares listed and/or traded pursuant to Rule 8.600
(including pursuant to unlisted trading privileges) are subject to the
full panoply of Exchange rules and procedures that currently govern the
trading of equity securities on the Exchange.\12\
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    \12\ See Approval Order, supra note 11, at 19547.
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    In addition, Rule 8.600(d) currently provides for the criteria that
Managed Fund Shares must satisfy for initial and continued listing on
the Exchange, including, for example, that a minimum number of Managed
Fund Shares are required to be outstanding at the time of commencement
of trading on the Exchange. However, the current process for listing
and trading new series of Managed Fund Shares on the Exchange requires
that the Exchange submit a proposed rule change with the Commission. In
this regard, Commentary .01 to Rule 8.600 specifies that the Exchange
will file separate proposals under section 19(b) of the Act (hereafter,
a ``proposed rule change'') before listing and trading of shares of an
issue of Managed Fund Shares.
Proposed Changes to Rule 8.600
    The Exchange would amend Commentary .01 to Rule 8.600 to specify
that the Exchange may approve Managed Fund Shares for listing and/or
trading (including pursuant to unlisted trading privileges) pursuant to
SEC Rule

19b-4(e) under the Act, which pertains to derivative securities
products (``SEC Rule 19b-4(e)'').\13\ SEC Rule 19b-4(e)(1) provides
that the listing and trading of a new derivative securities product by
a self-regulatory organization (``SRO'') is not deemed a proposed rule
change, pursuant to paragraph (c)(1) of Rule 19b-4,\14\ if the
Commission has approved, pursuant to section 19(b) of the Act, the
SRO's trading rules, procedures and listing standards for the product
class that would include the new derivative securities product and the
SRO has a surveillance program for the product class. This is the
current method pursuant to which ``passive'' ETFs are listed under NYSE
Arca Equities Rule 5.2(j)(3).
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    \13\ 17 CFR 240.19b-4(e). As provided under SEC Rule 19b-4(e),
the term ``new derivative securities product'' means any type of
option, warrant, hybrid securities product or any other security,
other than a single equity option or a security futures product,
whose value is based, in whole or in part, upon the performance of,
or interest in, an underlying instrument.
    \14\ 17 CFR 240.19b-4(c)(1). As provided under SEC Rule 19b-
4(c)(1), a stated policy, practice, or interpretation of the SRO
shall be deemed to be a proposed rule change unless it is reasonably
and fairly implied by an existing rule of the SRO.
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    The Exchange would also specify within Commentary .01 to Rule 8.600
that components of Managed Fund Shares listed pursuant to SEC Rule 19b-
4(e) must satisfy on an initial and continued basis certain specific
criteria, which the Exchange would include within Commentary .01, as
described in greater detail below. As proposed, the Exchange would
continue to file separate proposed rule changes before the listing and
trading of Managed Fund Shares with components that do not satisfy the
additional criteria described below or components other than those
specified below. For example, if the components of a Managed Fund Share
exceeded one of the applicable thresholds, the Exchange would file a
separate proposed rule change before listing and trading such Managed
Fund Share. Similarly, if the components of a Managed Fund Share
included a security or asset that is not specified below, the Exchange
would file a separate proposed rule change.
    The Exchange would also add to the criteria of Rule 8.600(c) to
provide that the Web site for each series of Managed Fund Shares shall
disclose certain information regarding the Disclosed Portfolio, to the
extent applicable. The required information includes the following, to
the extent applicable: Ticker symbol, CUSIP or other identifier, a
description of the holding, identity of the asset upon which the
derivative is based, the strike price for any options, the quantity of
each security or other asset held as measured by select metrics,
maturity date, coupon rate, effective date, market value and percentage
weight of the holding in the portfolio.\15\
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    \15\ Proposed rule changes for previously-listed series of
Managed Fund Shares have similarly included disclosure requirements
with respect to each portfolio holding, as applicable to the type of
holding. See, e.g. Securities Exchange Act Release No. 72666 (July
3, 2014), 79 FR 44224 (July 30, 2014) (SR-NYSEArca-2013-122) (the
``PIMCO Total Return Use of Derivatives Approval''), at 44227.
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    In addition, the Exchange would amend Rule 8.600(d) to specify that
all Managed Fund Shares must have a stated investment objective, which
must be adhered to under normal market conditions.\16\
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    \16\ The Exchange would also add a new defined term under Rule
8.600(c)(5) to specify that the term ``normal market conditions''
includes, but is not limited to, the absence of trading halts in the
applicable financial markets generally; operational issues causing
dissemination of inaccurate market information; or force majeure
type events such as systems failure, natural or man-made disaster,
act of God, armed conflict, act of terrorism, riot or labor
disruption or any similar intervening circumstance.
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    Finally, the Exchange would also amend the continued listing
requirement in Rule 8.600(d)(2)(A) by changing the requirement that a
Portfolio Indicative Value for Managed Fund Shares be widely
disseminated by one or more major market data vendors at least every 15
seconds during the time when the Managed Fund Shares trade on the
Exchange to a requirement that a Portfolio Indicative Value be widely
disseminated by one or more major market data vendors at least every 15
seconds during the Core Trading Session (as defined in NYSE Arca
Equities Rule 7.34).
Proposed Managed Fund Share Portfolio Standards
    The Exchange is proposing standards that would pertain to Managed
Fund Shares to qualify for listing and trading pursuant to SEC Rule
19b-4(e). These standards would be grouped according to security or
asset type. The Exchange notes that the standards proposed for a
Managed Fund Share portfolio that holds U.S. Component Stocks, Non-U.S.
Component Stocks, Derivative Securities Products and Index-Linked
Securities are based in large part on the existing equity security
standards applicable to Units in Commentary .01 to Rule 5.2(j)(3). The
standards proposed for a Managed Fund Share portfolio that holds fixed
income securities are based in large part on the existing fixed income
security standards applicable to Units in Commentary .02 to Rule
5.2(j)(3). Many of the standards proposed for other types of holdings
in a Managed Fund Share portfolio are based on previous proposed rule
changes for specific series of Managed Fund Shares.\17\
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    \17\ See the PIMCO Total Return Use of Derivatives Approval. See
also, Securities Exchange Act Release Nos. 66321 (February 3, 2012),
77 FR 6850 (February 9, 2012) (SR-NYSEArca-2011-95) (the ``PIMCO
Total Return Approval''); 69244 (March 27, 2013), 78 FR 19766 (April
2, 2013) (SR-NYSEArca-2013-08) (the ``SPDR Blackstone/GSO Senior
Loan Approval''); 68870 (February 8, 2013), 78 FR 11245 (February
15, 2013) (SR-NYSEArca-2012-139) (the ``First Trust Preferred
Securities and Income Approval''); 69591 (May 16, 2013), 78 FR 30372
(May 22, 2013) (SR-NYSEArca-2013-33) (the ``International Bear
Approval''); 61697 (March 12, 2010), 75 FR 13616 (March 22, 2010)
(SR-NYSEArca-2010-04) (the ``WisdomTree Real Return Approval''); and
67054 (May 24, 2012), 77 FR 32161 (May 31, 2012) (SR-NYSEArca-2012-
25) (the ``WisdomTree Brazil Bond Approval''). Certain standards
proposed herein for Managed Fund Shares are also based on previous
proposed rule changes for specific series of Units for which
Commission approval for listing was required due to the Units not
satisfying certain standards of Commentary .01 and .02 to Rule
5.2(j)(3). See, e.g., Securities Exchange Act Release No. 69373
(April 15, 2013), 78 FR 23601 (April 19, 2013) (SR-NYSEArca-2012-
108) (the ``NYSE Arca U.S. Equity Synthetic Reverse Convertible
Index Fund Approval'').
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    Proposed Commentary .01(a) would describe the standards for a
Managed Fund Share portfolio that holds equity securities, which are
defined to be U.S. Component Stocks,\18\ Non-U.S. Component Stocks,\19\
Derivative Securities Products,\20\ and Index-Linked Securities \21\
listed on a national securities exchange. For Derivative Securities
Products and Index-Linked Securities, no more than 25% of the equity
weight of the portfolio could include leveraged and/or inverse
leveraged Derivative Securities Products or Index-Linked Securities.
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    \18\ For the purposes of Commentary .01 and this proposal, the
term ``U.S. Component Stocks'' would have the same meaning as
defined in NYSE Arca Equities Rule 5.2(j)(3).
    \19\ For the purposes of Commentary .01 and this proposal, the
term ``Non-U.S. Component Stocks'' would have the same meaning as
defined in NYSE Arca Equities Rule 5.2(j)(3).
    \20\ For the purposes of Commentary .01 and this proposal, the
term ``Derivative Securities Products'' would have the same meaning
as defined in NYSE Arca Equities Rule 7.34(a)(4)(A).
    \21\ Index-Linked Securities are securities listed under NYSE
Arca Equities Rule 5.2(j)(6).
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    As proposed in Commentary .01(a)(1) to Rule 8.600, the component
stocks of the equity portion of a portfolio that are U.S. Component
Stocks shall meet the following criteria:
    (1) Component stocks (excluding Derivative Securities Products and
Index-Linked Securities) that in the aggregate account for at least 90%
of the equity weight of the portfolio (excluding such Derivative
Securities Products and Index-Linked Securities) each must

have a minimum market value of at least $75 million; \22\
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    \22\ This proposed text is identical to the corresponding text
of Commentary .01(a)(A)(1) to Rule 5.2(j)(3), except for the
omission of the reference to ``index,'' which is not applicable, and
the addition of the reference to Index-Linked Securities.
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    (2) Component stocks (excluding Derivative Securities Products and
Index-Linked Securities) that in the aggregate account for at least 70%
of the equity weight of the portfolio (excluding such Derivative
Securities Products and Index-Linked Securities) each must have a
minimum monthly trading volume of 250,000 shares, or minimum notional
volume traded per month of $25,000,000, averaged over the last six
months; \23\
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    \23\ This proposed text is identical to the corresponding text
of Commentary .01(a)(A)(2) to Rule 5.2(j)(3), except for the
omission of the reference to ``index,'' which is not applicable, and
the addition of the reference to Index-Linked Securities.
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    (3) The most heavily weighted component stock (excluding Derivative
Securities Products and Index-Linked Securities) must not exceed 30% of
the equity weight of the portfolio, and, to the extent applicable, the
five most heavily weighted component stocks (excluding Derivative
Securities Products and Index-Linked Securities) must not exceed 65% of
the equity weight of the portfolio; \24\
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    \24\ This proposed text is identical to the corresponding text
of Commentary .01(a)(A)(3) to Rule 5.2(j)(3), except for the
omission of the reference to ``index,'' which is not applicable, and
the addition of the reference to Index-Linked Securities.
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    (4) Where the equity portion of the portfolio does not include Non-
U.S. Component Stocks, the equity portion of the portfolio shall
include a minimum of 13 component stocks; provided, however, that there
shall be no minimum number of component stocks if (a) one or more
series of Derivative Securities Products or Index-Linked Securities
constitute, at least in part, components underlying a series of Managed
Fund Shares, or (b) one or more series of Derivative Securities
Products or Index-Linked Securities account for 100% of the equity
weight of the portfolio of a series of Managed Fund Shares; \25\
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    \25\ This proposed text is identical to the corresponding text
of Commentary .01(a)(A)(4) to Rule 5.2(j)(3), except for the
omission of the reference to ``index,'' which is not applicable, the
addition of the reference to Index-Linked Securities, and the
reference to the 100% limit applying to the ``equity portion'' of
the portfolio.
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    (5) Except as provided in proposed Commentary .01(a), equity
securities in the portfolio must be U.S. Component Stocks listed on a
national securities exchange and must be NMS Stocks as defined in Rule
600 of Regulation NMS; \26\
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    \26\ 17 CFR 240.600. This proposed text is identical to the
corresponding text of Commentary .01(a)(A)(5) to Rule 5.2(j)(3),
except for the addition of ``equity'' to make clear that the
standard applies to ``equity securities'', the exclusion of
unsponsored ADRs, and the omission of the reference to ``index,''
which is not applicable.
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    (6) For Derivative Securities Products and Index-Linked Securities,
no more than 25% of the equity weight of the portfolio could include
leveraged and/or inverse leveraged Derivative Securities Products or
Index-Linked Securities; and
    (7) American Depositary Receipts (``ADRs'') may be sponsored or
unsponsored. However no more than 10% of the equity weight of the
portfolio shall consist of unsponsored ADRs.\27\
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    \27\ Proposed rule changes for previously-listed series of
Managed Fund Shares have similarly included the ability for such
Managed Fund Share holdings to include not more than 10% of net
assets in unsponsored ADRs. See, e.g., Securities Exchange Act
Release No. 71067 (December 12, 20113), 78 FR 76669 (December 18,
2013) (order approving listing and trading of shares of the SPDR MFS
Systematic Core Equity ETF, SPDR MFS Systematic Growth Equity ETF,
and SPDR MFS Systematic Value Equity ETF under NYSE Arca Equities
Rule 8.600).
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    As proposed in Commentary .01(a)(2) to Rule 8.600, the component
stocks of the equity portion of a portfolio that are Non-U.S. Component
Stocks shall meet the following criteria:
    (1) Non-U.S. Component Stocks each shall have a minimum market
value of at least $100 million; \28\
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    \28\ The proposed text is identical to the corresponding
representation from the ``SSgA Global Managed Volatility Release'',
as defined in footnote 27, below. The proposed text is also
identical to the corresponding text of Commentary .01(a)(B)(1) to
NYSE Arca Equities Rule 5.2(j)(3), except for the omission of the
reference to ``index,'' which is not applicable, and that each Non-
U.S. Component Stock must have a minimum market value of at least
$100 million instead of the 90% required under Commentary
.01(a)(B)(1) to NYSE Arca Equities Rule 5.2(j)(3).
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    (2) Non-U.S. Component Stocks each shall have a minimum global
monthly trading volume of 250,000 shares, or minimum global notional
volume traded per month of $25,000,000, averaged over the last six
months; \29\
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    \29\ The proposed text is identical to the corresponding
representation from the SSgA Global Managed Volatility Release, as
defined in footnote 27, below. This proposed text also is identical
to the corresponding text of Commentary .01(a)(B)(2) to NYSE Arca
Equities Rule 5.2(j)(3), except for the omission of the reference to
``index,'' which is not applicable.
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    (3) The most heavily weighted Non-U.S. Component Stock shall not
exceed 25% of the equity weight of the portfolio, and, to the extent
applicable, the five most heavily weighted Non-U.S. Component Stocks
shall not exceed 60% of the equity weight of the portfolio; \30\
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    \30\ This proposed text is identical to the corresponding text
of Commentary .01(a)(B)(3) to NYSE Arca Equities Rule 5.2(j)(3),
except for the omission of the reference to ``index,'' which is not
applicable.
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    (4) Where the equity portion of the portfolio includes Non-U.S.
Component Stocks, the equity portion of the portfolio shall include a
minimum of 20 component stocks; provided, however, that there shall be
no minimum number of component stocks if (i) one or more series of
Derivative Securities Products or Index-Linked Securities constitute,
at least in part, components underlying a series of Managed Fund
Shares, or (ii) one or more series of Derivative Securities Products or
Index-Linked Securities account for 100% of the equity weight of the
portfolio of a series of Managed Fund Shares; \31\ and
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    \31\ This proposed text is similar to the corresponding text of
Commentary .01(a)(B)(4) to NYSE Arca Equities Rule 5.2(j)(3), except
for the omission of the reference to ``index,'' which is not
applicable, the addition of the reference to Index-Linked
Securities, the reference to the equity portion of the portfolio
including Non-U.S. Component Stocks, and the reference to the 100%
limitation applying to the ``equity weight'' of the portfolio, which
is included because the proposed standards in Commentary .01 to Rule
8.600 permit the inclusion of non-equity securities, whereas
Commentary .01 to NYSE Arca Equities Rule 5.2(j)(3) applies only to
equity securities.
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    (5) Each Non-U.S. Component Stock shall be listed and traded on an
exchange that has last-sale reporting.\32\
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    \32\ This proposed text is similar to Commentary .01(a)(B)(5) to
NYSE Arca Equities Rule 5.2(j)(3) as it relates to Non-U.S.
Component Stocks.
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    The Exchange notes that it is not proposing to require that any of
the equity portion of the equity portfolio composed of Non-U.S.
Component Stocks be listed on markets that are either a member of the
Intermarket Surveillance Group (``ISG'') or a market with which the
Exchange has a comprehensive surveillance sharing agreement
(``CSSA'').\33\ However, as further detailed below, the regulatory
staff of the Exchange, or the Financial Industry Regulatory Authority,
Inc. (``FINRA''), on behalf of the Exchange, will communicate as needed
regarding trading in Managed Fund Shares with other markets that are
members of the ISG, including U.S. securities exchanges on which the
components are traded. The Exchange notes that the generic listing
standards for Units based on foreign indexes in NYSE Arca Equities Rule
5.2(j)(3) do not include specific ISG or CSSA requirements.\34\ In

addition, the Commission has approved listing and trading on the
Exchange of shares of an issue of Managed Fund Shares under NYSE Arca
Equities Rule 8.600 where non-U.S. equity securities in such issue's
portfolio meet specified criteria and where there is no requirement
that such non-U.S. equity securities are traded in markets that are
members of ISG or with which the Exchange has in place a CSSA.\35\
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    \33\ A list of ISG members is available at www.isgportal.org.
    \34\ Under Commentary .01 to NYSE Arca Equities Rule 5.2(j)(3),
Units with components that include Non-U.S. Component Stocks can
hold a portfolio that is entirely composed of Non-U.S. Component
Stocks that are listed on markets that are neither members of ISG,
nor with which the Exchange has in place a CSSA.
    \35\ See Securities Exchange Act Release No. 75023 (May 21,
2015), 80 FR 30519 (May 28, 2015) (SR-NYSEArca-2014-100) (order
approving listing and trading on the Exchange of shares of the SPDR
SSgA Global Managed Volatility ETF under NYSE Arca Equities Rule
8.600) (``SSgA Global Managed Volatility Release'').
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    Proposed Commentary .01(a)(3) would provide that the portfolio may
hold rights and warrants, provided that the common stock underlying
such rights or warrants must be U.S. Component Stocks or Non-U.S.
Component Stocks that meet the criteria set forth in paragraph (a)(1)
or paragraph (a)(2) of Commentary .01.
    Proposed Commentary .01(b) would describe the standards for a
Managed Fund Share portfolio that holds fixed income securities, which
are debt securities \36\ that are notes, bonds, debentures or evidence
of indebtedness that include, but are not limited to, U.S. Department
of Treasury securities (``Treasury Securities''), government-sponsored
entity securities (``GSE Securities''), municipal securities, trust
preferred securities, supranational debt and debt of a foreign country
or a subdivision thereof, investment grade and high yield corporate
debt, bank loans, mortgage and asset backed securities, and commercial
paper. The applicable portfolio holdings standards would be as follows:
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    \36\ Debt securities include a variety of fixed income
obligations, including, but not limited to, corporate debt
securities, government securities, municipal securities, convertible
securities, and mortgage-backed securities. Debt securities include
investment-grade securities, non-investment-grade securities, and
unrated securities. Debt securities also include variable and
floating rate securities.
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    (1) Components that in the aggregate account for at least 75% of
the fixed income weight of the portfolio each shall have a minimum
original principal amount outstanding of $100 million or more; \37\
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    \37\ This text of proposed Commentary .01(b)(1) to Rule 8.600 is
based on the corresponding text of Commentary .02(a)(2) to Rule
5.2(j)(3) .
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    (2) No component fixed-income security (excluding Treasury
Securities and GSE Securities) could represent more than 30% of the
fixed income weight of the portfolio, and the five most heavily
weighted component fixed income securities in the portfolio must not in
the aggregate account for more than 65% of the fixed income weight of
the portfolio; \38\
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    \38\ This proposed text is identical to the corresponding text
of Commentary .02(a)(4) to Rule 5.2(j)(3), except for the omission
of the reference to ``index,'' which is not applicable.
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    (3) An underlying portfolio (excluding exempted securities) that
includes fixed income securities must include a minimum of 13 non-
affiliated issuers; provided, however, that there shall be no minimum
number of non-affiliated issuers required for fixed income securities
if at least 70% of the weight of the portfolio consists of equity
securities as described in proposed Commentary .01(a).\39\
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    \39\ This proposed text is similar to the corresponding text of
Commentary .02(a)(5) to Rule 5.2(j)(3), except for the omission of
the reference to ``index,'' which is not applicable, the exclusion
of the text ``consisting entirely of exempted securities'' and the
provision that there shall be no minimum number of non-affiliated
issuers required for fixed income securities if at least 70% of the
weight of the portfolio consists of equity securities as described
in proposed Commentary .01(a).
---------------------------------------------------------------------------

    (4) Component securities that in aggregate account for at least 90%
of the fixed income weight of the portfolio must be either (a) from
issuers that are required to file reports pursuant to Sections 13 and
15(d) of the Act; (b) from issuers that have a worldwide market value
of its outstanding common equity held by non-affiliates of $700 million
or more; (c) from issuers that have outstanding securities that are
notes, bonds debentures, or evidence of indebtedness having a total
remaining principal amount of at least $1 billion; (d) exempted
securities as defined in section 3(a)(12) of the Act; or (e) from
issuers that are a government of a foreign country or a political
subdivision of a foreign country; and
    (5) Non-agency, non-GSE and privately-issued mortgage-related and
other asset-backed securities components of a portfolio shall not
account, in the aggregate, for more than 20% of the weight of the fixed
income portion of the portfolio.\40\
---------------------------------------------------------------------------

    \40\ Proposed rule changes for previously-listed series of
Managed Fund Shares have similarly included the ability for such
Managed Fund Share holdings to include up to 20% of net assets in
non-agency, non-GSE and privately-issued mortgage-related and other
asset-backed securities. See, e.g., Securities Exchange Act Release
No. 75566 (July 30, 2015), 80 FR 46612 (August 5, 2015) (SR-
NYSEArca-2015-42) (order approving listing and trading of shares of
Newfleet Multi-Sector Unconstrained Bond ETF under NYSE Arca
Equities Rule 8.600).
---------------------------------------------------------------------------

    (6) Any convertible security must be convertible into an equity
security that meets the criteria set forth in paragraph (a)(1) or
paragraph (a)(2) of Commentary .01.
    Proposed Commentary .01(c) would describe the standards for a
Managed Fund Share portfolio that holds cash and cash equivalents.\41\
Specifically, the portfolio may hold short-term instruments with
maturities of less than 3 months. There would be no limitation to the
percentage of the portfolio invested in such holdings. Short-term
instruments would include the following: \42\
---------------------------------------------------------------------------

    \41\ Proposed rule changes for previously-listed series of
Managed Fund Shares have similarly included the ability for such
Managed Fund Share holdings to include cash and cash equivalents.
See, e.g., SPDR Blackstone/GSO Senior Loan Approval, supra note 17,
at 19768-69 and First Trust Preferred Securities and Income
Approval, supra note 17, at 76150.
    \42\ Proposed rule changes for previously-listed series of
Managed Fund Shares have similarly specified short-term instruments
with respect to their inclusion in Managed Fund Share holdings. See,
e.g., First Trust Preferred Securities and Income Approval, supra
note 17, at 76150-51.
---------------------------------------------------------------------------

    (1) 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 and reverse repurchase agreements;
    (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;
    (6) commercial paper, which are short-term unsecured promissory
notes; and
    (7) money market funds.
    Proposed Commentary .01(d) would describe the standards for a
Managed Fund Share portfolio that holds listed derivatives, including
futures, options and swaps on commodities, currencies and financial
instruments (e.g., stocks, fixed income, interest rates, and
volatility) or a basket or index of any of the foregoing.\43\ There
would be no limitation to the percentage of the portfolio invested in
such holdings; provided, however, that, in the aggregate, at least 90%
of the weight of such holdings invested in futures, exchange-traded
options and swaps shall consist of futures, options and

swaps whose principal market is a member of the Intermarket
Surveillance Group (``ISG'') or is a market with which the Exchange has
a comprehensive surveillance sharing agreement (``CSSA'').\44\ Proposed
Commentary .01(e) would describe the standards for a Managed Fund Share
portfolio that holds over the counter (``OTC'') derivatives, including
forwards, options and swaps on commodities, currencies and financial
instruments (e.g., stocks, fixed income, interest rates, and
volatility) or a basket or index of any of the foregoing.\45\ Proposed
Commentary .01(e)(1) would provide that no more than 20% of the assets
in the portfolio may be invested in OTC derivatives.
---------------------------------------------------------------------------

    \43\ Proposed rule changes for previously-listed series of
Managed Fund Shares have similarly included the ability for such
Managed Fund Share holdings to include listed derivatives. See,
e.g., WisdomTree Real Return Approval, supra note 17, at 13617 and
WisdomTree Brazil Bond Approval, supra note 17, at 32163.
    \44\ ISG is comprised of an international group of exchanges,
market centers, and market regulators that perform front-line market
surveillance in their respective jurisdictions. See https://www.isgportal.org/home.html.
    \45\ A proposed rule change for series of Units previously
listed and traded on the Exchange pursuant to Rule 5.2(j)(3)
similarly included the ability for such Units' holdings to include
OTC derivatives, specifically OTC down-and-in put options, which are
not NMS Stocks as defined in Rule 600 of Regulation NMS and
therefore do not satisfy the requirements of Commentary .01(a)(A) to
Rule 5.2(j)(3). See, e.g., NYSE Arca U.S. Equity Synthetic Reverse
Convertible Index Fund Approval, supra note 17, at 23602.
---------------------------------------------------------------------------

    Proposed Commentary .01(f) would provide that, to the extent that
listed or OTC derivatives are used to gain exposure to individual
equities and/or fixed income securities, or to indexes of equities and/
or fixed income securities, such equities and/or fixed income
securities, as applicable, shall meet the criteria set forth in
Commentary .01(a) and .01(b) to Rule 8.600, respectively.
    The Exchange believes that the proposed standards would continue to
ensure transparency surrounding the listing process for Managed Fund
Shares. Additionally, the Exchange believes that the proposed portfolio
standards for listing and trading Managed Fund Shares, many of which
track existing Exchange rules relating to Units, are reasonably
designed to promote a fair and orderly market for such Managed Fund
Shares.\46\ These proposed standards would also work in conjunction
with the existing initial and continued listing criteria related to
surveillance procedures and trading guidelines.
---------------------------------------------------------------------------

    \46\ See Approval Order, supra note 11 at 19548.
---------------------------------------------------------------------------

    In support of this proposal, the Exchange represents that: \47\
---------------------------------------------------------------------------

    \47\ The Exchange made similar representations in the Approval
Order. See id. at 19549.
---------------------------------------------------------------------------

    (1) The Managed Fund Shares will continue to conform to the initial
and continued listing criteria under Rule 8.600;
    (2) the Exchange's surveillance procedures are adequate to continue
to properly monitor the trading of the Managed Fund Shares in all
trading sessions and to deter and detect violations of Exchange rules.
Specifically, the Exchange intends to utilize its existing surveillance
procedures applicable to derivative products, which will include
Managed Fund Shares, to monitor trading in the Managed Fund Shares;
    (3) prior to the commencement of trading of a particular series of
Managed Fund Shares, the Exchange will inform its Equity Trading Permit
(``ETP'') Holders in a Bulletin of the special characteristics and
risks associated with trading the Managed Fund Shares, including
procedures for purchases and redemptions of Managed Fund Shares,
suitability requirements under NYSE Arca Equities Rule 9.2(a), the
risks involved in trading the Managed Fund Shares during the Opening
and Late Trading Sessions when an updated Portfolio Indicative Value
will not be calculated or publicly disseminated, information regarding
the Portfolio Indicative Value and the Disclosed Portfolio, prospectus
delivery requirements, and other trading information. In addition, the
Bulletin will disclose that the Managed Fund Shares are subject to
various fees and expenses, as described in the applicable registration
statement, and will discuss any exemptive, no-action, and interpretive
relief granted by the Commission from any rules under the Act. Finally,
the Bulletin will disclose that the net asset value for the Managed
Fund Shares will be calculated after 4 p.m. ET each trading day; and
    (4) the issuer of a series of Managed Fund Shares will be required
to comply with Rule 10A-3 under the Act for the initial and continued
listing of Managed Fund Shares, as provided under NYSE Arca Equities
Rule 5.3.
    The Exchange notes that the proposed change is not otherwise
intended to address any other issues and that the Exchange is not aware
of any problems that ETP Holders or issuers would have in complying
with the proposed change.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with section 6(b) of the Act,\48\ in general, and furthers the
objectives of section 6(b)(5) of the Act,\49\ in particular, because it
is 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.
---------------------------------------------------------------------------

    \48\ 15 U.S.C. 78f(b).
    \49\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    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 because it would facilitate the listing and trading of
additional Managed Fund Shares, which would enhance competition among
market participants, to the benefit of investors and the marketplace.
Specifically, after more than six years under the current process,
whereby the Exchange is required to file a proposed rule change with
the Commission for the listing and trading of each new series of
Managed Fund Shares, the Exchange believes that it is appropriate to
codify certain rules within Rule 8.600 that would generally eliminate
the need for separate proposed rule changes. The Exchange believes that
this would facilitate the listing and trading of additional types of
Managed Fund Shares that have investment portfolios that are similar to
investment portfolios for Units, which have been approved for listing
and trading, thereby creating greater efficiencies in the listing
process for the Exchange and the Commission. In this regard, the
Exchange notes that the standards proposed for Managed Fund Share
portfolios that include U.S. Component Stocks, Non-U.S. Component
Stocks, Derivative Securities Products, and Index-Linked Securities are
based in large part on the existing equity security standards
applicable to Units in Commentary .01 to Rule 5.2(j)(3) and that the
standards proposed for Managed Fund Share portfolios that include fixed
income securities are based in large part on the existing fixed income
standards applicable to Units in Commentary .02 to Rule 5.2(j)(3).
Additionally, many of the standards proposed for other types of
holdings of series of Managed Fund Shares are based on previous
proposed rule changes for specific series of Managed Fund Shares.\50\
---------------------------------------------------------------------------

    \50\ See supra, note 17.
---------------------------------------------------------------------------

    With respect to the proposed addition to the criteria of Rule
8.600(c) to provide that the Web site for each series of Managed Fund
Shares shall disclose certain information regarding the Disclosed
Portfolio, to the extent applicable, the Exchange notes that proposed
rule changes approved by the Commission for previously-listed series of
Managed Fund Shares have similarly included disclosure requirements
with respect to each portfolio holding, as

applicable to the type of holding.\51\ With respect to the proposed
exclusion of Derivatives Securities Products and Index-Linked
Securities from the requirements of proposed Commentary .01(a) of Rule
8.600, the Exchange believes it is appropriate to exclude Index-Linked
Securities as well as Derivative Securities Products from certain
component stock eligibility criteria for Managed Fund Shares in so far
as Derivative Securities Products and Index-Linked Securities are
themselves subject to specific quantitative listing and continued
listing requirements of a national securities exchange on which such
securities are listed. Derivative Securities Products and Index-Linked
Securities that are components of a fund's portfolio would have been
listed and traded on a national securities exchange pursuant to a
proposed rule change approved by the Commission pursuant to section
19(b)(2) of the Act \52\ or submitted by a national securities exchange
pursuant to section 19(b)(3)(A) of the Act \53\ or would have been
listed by a national securities exchange pursuant to the requirements
of Rule 19b-4(e) under the Act.\54\ The Exchange also notes that
Derivative Securities Products and Index-Linked Securities are
derivatively priced, and, therefore, the Exchange believes that it
would not be necessary to apply the proposed generic quantitative
criteria (e.g., market capitalization, trading volume, or portfolio
component weighting) applicable to equity securities other than
Derivative Securities Products or Index-Linked Securities (e.g., common
stocks) to such products.\55\
---------------------------------------------------------------------------

    \51\ See supra, note 15.
    \52\ 15 U.S.C. 78s(b)(2).
    \53\ 15 U.S.C. 78s(b)(3)(A).
    \54\ 17 CFR 240.19b-4(e).
    \55\ See Securities Exchange Act Release Nos. 57561 (March 26,
2008), 73 FR 17390 (April 1, 2008) (SR-NYSEArca-2008-29) (notice of
filing of proposed rule change to amend eligibility criteria for
components of an index underlying Investment Company Units); 57751
(May 1, 2008), 73 FR 25818 (May 7, 2008) (SR-NYSEArca-2008-29)
(order approving proposed rule change to amend eligibility criteria
for components of an index underlying Investment Company Units).
---------------------------------------------------------------------------

    With respect to the proposed criteria applicable to U.S. Component
Stocks, the Exchange notes that such criteria are similar to those in
Commentary .01 to NYSE Arca Equities Rule 5.2(j)(3) relating to
criteria applicable to an index or portfolio of U.S. Component Stocks.
In addition, Non-U.S. Component Stocks also will be required to meet
criteria similar to certain generic listing standards in Commentary .01
to NYSE Arca Equities Rule 5.2(j)(3) relating to criteria applicable to
an index or portfolio of U.S. Component Stocks and Non-U.S. Component
Stocks underlying a series of Units to be listed and traded on the
Exchange pursuant to Rule 19b-4(e) under the Act.
    With respect to the proposed requirement in Commentary .01(a)(1)(G)
that no more than 10% of the equity weight of the portfolio shall
consist of unsponsored ADRs, the Exchange notes that such requirement
will ensure that unsponsored ADRs, which are traded OTC and which
generally have less market transparency than sponsored ADRs, could
account for only a small percentage of the equity weight of a
portfolio. Further, the requirement is consistent with representations
made in proposed rule changes for issues of Managed Fund Shares
previously approved by the Commission.\56\
---------------------------------------------------------------------------

    \56\ See note 27, supra.
---------------------------------------------------------------------------

    With respect to the proposed requirement in Commentary .01(a)(3)
that a the common stock underlying rights or warrants in a portfolio
must be U.S. Component Stocks or Non-U.S. Component Stocks that meet
the criteria set forth in paragraph (a)(1) or paragraph (a)(2) of
Commentary .01, such requirement would assure that common stocks
underlying an issue of rights or warrants meet the liquidity and other
criteria in Commentary .01 applicable to U.S. Component Stocks and Non-
U.S. Component Stocks.
    Similarly, with respect to the proposed requirement in Commentary
.01(b)(6) that any convertible security must be convertible into an
equity security that meets the criteria in paragraph (a)(1) or
paragraph (a)(2) of Commentary .01, such requirement would assure that
the equity securities into which a convertible security could be
converted meet the liquidity and other criteria in Commentary .01
applicable to such equity securities (i.e., U.S. Component Stocks and
Non-U.S. Component Stocks).
    With respect to the proposed amendment to the continued listing
requirement in Rule 8.600(d)(2)(A) to require dissemination of a
Portfolio Indicative Value at least every 15 seconds during the Core
Trading Session (as defined in NYSE Arca Equities Rule 7.34), such
requirement conforms to the requirement applicable to the dissemination
of the Intraday Indicative Value for Units in Commentary .01(c) and
Commentary .02 (c) to NYSE Arca Equities Rule 5.2(j)(3). In addition,
such dissemination is consistent with representations made in proposed
rule changes for issues of Managed Fund Shares previously approved by
the Commission.\57\
---------------------------------------------------------------------------

    \57\ See, e.g., Approval Order, supra note 11; International
Bear Approval, supra note 17.
---------------------------------------------------------------------------

    With respect to the proposed requirement in Commentary .01(b)(3) to
Rule 8.600 that an underlying portfolio (excluding exempted securities)
that includes fixed income securities must include a minimum of 13 non-
affiliated issuers, but that there would be no minimum number of non-
affiliated issuers required for fixed income securities if at least 70%
of the weight of the portfolio consists of equity securities, the
Exchange notes that such requirement is consistent with proposed
Commentary .01(b)(2). The Exchange further notes that Commentary .02
(a)(4) to Rule 5.2(j)(3) currently provides that a single fixed income
security can represent up to 30% of the weight of an index underlying a
series of Units. Proposed Commentary .01(b)(3) to Rule 8.600,
therefore, provides for a maximum weighting of a fixed income security
in a fund's portfolio comparable to existing rules applicable to Units
based on fixed income indexes.
    With respect to the proposed requirement in Commentary .01(b)(5)
that non-agency, non-GSE and privately-issued mortgage-related and
other asset-backed securities components of a portfolio shall not
account, in the aggregate, for more than 20% of the weight of the fixed
income portion of the portfolio, the Exchange notes that such
requirement is consistent with representations made in proposed rule
changes for issues of Managed Fund Shares previously approved by the
Commission.\58\
---------------------------------------------------------------------------

    \58\ See note 40, supra.
---------------------------------------------------------------------------

    With respect to the proposed amendment to Commentary .01(c)
relating to cash and cash equivalents, while there is no limitation on
the amount of cash and cash equivalents that can make up the portfolio,
such instruments are short-term, highly liquid, and of high credit
quality, making them less susceptible than other asset classes both to
price manipulation and volatility. Further, the requirement is
consistent with representations made in proposed rule changes for
issues of Managed Fund Shares previously approved by the
Commission.\59\
---------------------------------------------------------------------------

    \59\ See note 41, supra.
---------------------------------------------------------------------------

    With respect to proposed Commentary .01(d)(1) to Rule 8.600
relating to listed derivatives, the Exchange believes that it is
appropriate that there be no limit to the percentage of a portfolio
invested in such holdings, provided that, in the aggregate, at least
90% of the weight of such holdings

invested in futures, exchange-traded options and swaps would consist of
futures and options whose principal market is a member of ISG or is a
market with which the Exchange has a comprehensive surveillance sharing
agreement. Such a requirement would facilitate information sharing
among market participants trading shares of a series on Managed Fund
Shares as well as futures and options that such series may hold. In
addition, listed swaps would be centrally cleared, reducing
counterparty risk and thereby furthering investor protection.\60\
---------------------------------------------------------------------------

    \60\ The Commission has noted that ``[c]entral clearing
mitigates counterparty risk among dealers and other institutions by
shifting that risk from individual counterparties to [central
counterparties (``CCPs'')], thereby protecting CCPs from each
other's potential failures.'' See Securities Exchange Act Release
No. 67286 (June 28, 2012) (File No. S7-44-10) (Process for
Submissions for Review of Security-Based Swaps for Mandatory
Clearing and Notice Filing Requirements for Clearing Agencies).
---------------------------------------------------------------------------

    With respect to proposed Commentary .01(e) to Rule 8.600 relating
to OTC derivatives, the Exchange believes that the limitation to 20% of
assets for non-centrally cleared derivatives would assure that the
preponderance of fund investments would not be in derivatives that are
not listed and centrally cleared. The Exchange believes that such a
limitation is sufficient to mitigate the risks associated with price
manipulation because a 20% cap on OTC derivatives will ensure that any
series of Managed Fund Shares will be sufficiently broad-based in scope
to minimize potential manipulation associated with OTC derivatives and
because the remaining 80% of the portfolio will consist of instruments
subject to numerous restrictions designed to prevent manipulation,
including equity securities (which, as proposed, would be subject to
market cap, trading volume, and diversity requirements, among others),
fixed income securities (which, as proposed, would be subject to
principal amount outstanding, diversity, and issuer requirements, among
others), cash and cash equivalents (which, as proposed, would be
limited to short-term, highly liquid, and high credit quality
instruments), and/or listed derivatives (which, as proposed, 90% of the
weight of such listed derivatives will be futures, options and swaps
whose principal market is a member of ISG).
    With respect to proposed Commentary .01(f) to Rule 8.600 relating
to a fund's use of listed or OTC derivatives to gain exposure to
individual equities and/or fixed income securities, or to indexes of
equities and/or indexes of fixed income securities, the Exchange notes
that such exposure would be required to meet the numerical and other
criteria set forth in proposed Commentary .01(a) and .01(b) to Rule
8.600 respectively. The Exchange notes that, for purposes of this
proposal, a portfolio's investment in OTC derivatives will be
calculated as the amount of any margin required by a counterparty for
the purchase of a derivative by a fund.
    Quotation and other market information relating to listed futures
and options is available from the exchanges listing such instruments as
well as from market data vendors. With respect to centrally-cleared
swaps \61\ and non-centrally-cleared swaps regulated by the Commodity
Futures Trading Commission (the ``CFTC''),\62\ the Dodd-Frank Act
mandates that swap information be reported to swap data repositories
(``SDRs'').\63\ SDRs provide a central facility for swap data reporting
and recordkeeping and are required to comply with data standards set by
the CFTC, including real-time public reporting of swap transaction data
to a derivatives clearing organization or SEF.\64\ SDRs require real-
time reporting of all OTC and centrally cleared derivatives, including
public reporting of the swap price and size. The parties responsible
for reporting swaps information are CFTC-registered swap dealers
(``RSDs''), major swap participants, and SEFs. If swap counterparties
do not fall into the above categories, then one of the parties to the
swap must report the trade to the SDR. Cleared swaps regulated by the
CFTC must be executed on a Designated Contract Market (``DCM'') or SEF.
Such cleared swaps have the same reporting requirements as futures,
including end-of-day price, volume, and open interest. CFTC swaps
reporting requirements require public dissemination of, among other
items, product ID (if available); asset class; underlying reference
asset, reference issuer, or reference index; termination date; date and
time of execution; price, including currency; notional amounts,
including currency; whether direct or indirect counterparties include
an RSD; whether cleared or un-cleared; and platform ID of where the
contract was executed (if applicable).
---------------------------------------------------------------------------

    \61\ There are currently five categories of swaps eligible for
central clearing: Interest rate swaps; credit default swaps; foreign
exchange swaps; equity swaps; and commodity swaps. The following
entities provide central clearing for OTC derivatives: ICE Clear
Credit (US); ICE Clear (EU); CME Group; LCH.Clearnet; and Eurex.
    \62\ Pursuant to the Dodd-Frank Act, OTC and centrally-cleared
swaps are regulated by the CFTC with the exception of security-based
swaps, which are regulated by the Commission.
    \63\ The following entities are provisionally registered with
the CFTC as SDRs: BSDR LLC., Chicago Mercantile Exchange, Inc., DTCC
Data Repository, and ICE Trade Vault.
    \64\ Approximately 21 entities are currently temporarily
registered with the CFTC as SEFs.
---------------------------------------------------------------------------

    With respect to security-based swaps regulated by the Commission,
the Commission has adopted Regulation SBSR under the Act implementing
requirements for regulatory reporting and public dissemination of
security-based swap transactions set forth in title VII of the Dodd-
Frank Act. Regulation SBSR provides for the reporting of security-based
swap information to registered security-based swap data repositories
(``Registered SDRs'') or the Commission, and the public dissemination
of security-based swap transaction, volume, and pricing information by
Registered SDRs.\65\
---------------------------------------------------------------------------

    \65\ See Securities Exchange Act Release No. 74244 (February 11,
2015), 80 FR 14564 (March 19, 2015) (Regulation SBSR--Reporting and
Dissemination of Security-Based Swap Information).
---------------------------------------------------------------------------

    Price information relating to forwards and OTC options will be
available from major market data vendors.
    The Exchange notes that a fund's investments in derivative
instruments would be subject to limits on leverage imposed by the 1940
Act. Section 18(f) of the 1940 Act and related Commission guidance
limit the amount of leverage an investment company can obtain. A fund's
investments would be consistent with its investment objective and would
not be used to enhance leverage. To limit the potential risk associated
with a fund's use of derivatives, a fund will segregate or ``earmark''
assets determined to be liquid by a fund in accordance with the 1940
Act (or, as permitted by applicable regulation, enter into certain
offsetting positions) to cover its obligations under derivative
instruments. A fund's investments will not be used to seek performance
that is the multiple or inverse multiple (i.e., 2Xs and 3Xs) of a
fund's broad-based securities market index (as defined in Form N-
1A).\66\ In addition, the Exchange notes that, under proposed
Commentary .01(a) to Rule 8.600, for Derivative Securities Products and
Index-Linked Securities, no more than 25% of the equity weight of a
fund's portfolio could include leveraged and/or inverse leveraged
Derivative Securities Products or Index-Linked Securities.
---------------------------------------------------------------------------

    \66\ See, e.g., Securities Exchange Act Release No. 74842 (April
29, 2015), 86 FR 25723 (May 5, 2015) (SR-NYSEArca-2014-89) (order
approving listing and trading of shares of eight PIMCO exchange-
traded funds).
---------------------------------------------------------------------------

    The proposed rule change is also designed to protect investors and
the public interest because Managed Fund Shares listed and traded
pursuant to

Rule 8.600, including pursuant to the proposed new portfolio standards,
would continue to be subject to the full panoply of Exchange rules and
procedures that currently govern the trading of equity securities on
the Exchange.\67\
---------------------------------------------------------------------------

    \67\ See Approval Order, supra note 11, at 19547.
---------------------------------------------------------------------------

    The proposed rule change is also designed to protect investors and
the public interest as well as to promote just and equitable principles
of trade in that any Non-U.S. Component Stocks will each meet the
following criteria initially and on a continuing basis: (1) Have a
minimum market value of at least $100 million; (2) have a minimum
global monthly trading volume of 250,000 shares, or minimum global
notional volume traded per month of $25,000,000, averaged over the last
six months; (3) most heavily weighted Non-U.S. Component Stock shall
not exceed 25% of the equity weight of the portfolio, and, to the
extent applicable, the five most heavily weighted Non-U.S. Component
Stocks shall not exceed 60% of the equity weight of the portfolio; and
(4) each Non-U.S. Component Stock shall be listed and traded on an
exchange that has last-sale reporting. The Exchange believes that such
quantitative criteria are sufficient to mitigate any concerns that may
arise on the basis of a series of Managed Fund Shares potentially
holding 100% of its assets in Non-U.S. Component Stocks that are
neither listed on members of ISG nor exchanges with which the Exchange
has in place a CSSA because, as stated above, such criteria are either
the same or more stringent than the portfolio requirements for Index
Fund Shares that hold Non-U.S. Component Stocks and there are no such
requirements related to such securities being listed on an exchange
that is a member of ISG or with which the Exchange has in place a CSSA.
Further, the Exchange has not encountered and is not aware of any
instances of manipulation or other negative impact in any series of
Index Fund Shares that has occurred by virtue of the Index Fund Shares
holding such Non-U.S. Component Stocks. As such, the Exchange believes
that there should be no difference in the portfolio requirements for
Managed Fund Shares and Index Fund Shares as it relates to holding Non-
U.S. Component Stocks that are not listed on an exchange that is a
member of ISG or with which the Exchange has in place a CSSA.
    The Exchange believes that the proposed rule change is designed to
prevent fraudulent and manipulative acts and practices because the
Managed Fund Shares will be listed and traded on the Exchange pursuant
to the initial and continued listing criteria in Rule 8.600. The
Exchange has in place surveillance procedures that are adequate to
properly monitor trading in the Managed Fund Shares in all trading
sessions and to deter and detect violations of Exchange rules and
applicable federal securities laws. FINRA, on behalf of the Exchange,
or the regulatory staff of the Exchange, will communicate as needed
regarding trading in Managed Fund Shares with other markets that are
members of the ISG, including all U.S. securities exchanges and futures
exchanges on which the components are traded. In addition, the Exchange
may obtain information regarding trading in Managed Fund Shares from
other markets that are members of the ISG, including all U.S.
securities exchanges and futures exchanges on which the components are
traded, or with which the Exchange has in place a CSSA.
    The Exchange also believes that the proposed rule change would
fulfill the intended objective of Rule 19b-4(e) under the Act by
allowing Managed Fund Shares that satisfy the proposed listing
standards to be listed and traded without separate Commission approval.
However, as proposed, the Exchange would continue to file separate
proposed rule changes before the listing and trading of Managed Fund
Shares that do not satisfy the additional criteria described above.
    For these reasons, the Exchange believes that the proposal is
consistent with the Act.

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

    In accordance with section 6(b)(8) of the Act,\68\ 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. Instead, the Exchange believes that the
proposed rule change would facilitate the listing and trading of
additional types of Managed Fund Shares and result in a significantly
more efficient process surrounding the listing and trading of Managed
Fund Shares, which will enhance competition among market participants,
to the benefit of investors and the marketplace. The Exchange believes
that this would reduce the time frame for bringing Managed Fund Shares
to market, thereby reducing the burdens on issuers and other market
participants and promoting competition. In turn, the Exchange believes
that the proposed change would make the process for listing Managed
Fund Shares more competitive by applying uniform listing standards with
respect to Managed Fund Shares.
---------------------------------------------------------------------------

    \68\ 15 U.S.C. 78f(b)(8).
---------------------------------------------------------------------------

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. Solicitation of Comments

    Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether Amendment No. 2
to proposed rule change is consistent with the Act. Comments may be
submitted by any of the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-NYSEArca-2015-110 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NYSEArca-2015-110. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Section, 100 F Street
NE., Washington, DC 20549 on official business days between 10:00 a.m.
and 3:00 p.m. Copies of the filing will also be available for
inspection and copying at the NYSE's principal office 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-2015-110 and should
be submitted on or before February 16, 2016.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\69\
---------------------------------------------------------------------------

    \69\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-01714 Filed 1-29-16; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 85, Number 88 (Wednesday, May 6, 2020)]
[Proposed Rules]
[Pages 26898-26900]
[FR Doc No: 2020-09463]

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

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 71

[Docket No. FAA-2020-0319; Airspace Docket No. 20-ACE-5]
RIN 2120-AA66

Proposed Amendment of Class D and E Airspace; St. Louis, MO

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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

SUMMARY: This action proposes to amend the Class D airspace and the
Class E surface airspace at Spirit of St. Louis Airport, St. Louis, MO,
and the Class E airspace extending upward from 700 feet above the
surface at St. Louis Lambert International Airport, St. Louis, MO,
Spirit of St. Louis Airport, and St. Charles County Smartt Airport, St.
Charles, MO, which is contained within the St. Louis, MO, airspace
legal description, and removing St. Louis Regional Airport, Alton/St.
Louis, IL, which is contained within the St. Louis, MO, airspace legal
description. The FAA is proposing these actions as the result of
airspace reviews caused by the decommissioning of the Cardinal VHF
omnidirectional range (VOR) navigation aid, which provided navigation
information for the instrument procedures at these airports, as part of
the VOR Minimum Operational Network (MON) Program; and the
decommissioning of the outer markers for runways 12R, 24, and 30L at
St. Louis Lambert International Airport. The names of St. Louis Lambert
International Airport and the Spirit of St. Louis: RWY 25L-LOC would
also be updated to coincide with the FAA's aeronautical database.

DATES: Comments must be received on or before June 22, 2020.

ADDRESSES: Send comments on this proposal to the U.S. Department of
Transportation, Docket Operations, West Building Ground Floor, Room
W12-140, 1200 New Jersey Avenue SE, Washington, DC 20590; telephone
(202) 366-9826, or<PHONE_NUMBER>. You must identify FAA Docket No.
FAA-2020-0319/Airspace Docket No. 20-ACE-5 at the beginning of your
comments. You may also submit comments through the internet at https://www.regulations.gov. You may review the public docket containing the
proposal, any comments received, and any final disposition in person in
the Dockets Office between

9:00 a.m. and 5:00 p.m., Monday through Friday, except federal
holidays.
    FAA Order 7400.11D, Airspace Designations and Reporting Points, and
subsequent amendments can be viewed online at https://www.faa.gov/air_traffic/publications/. For further information, you can contact the
Airspace Policy Group, Federal Aviation Administration, 800
Independence Avenue SW, Washington, DC 20591; telephone: (202) 267-
8783. The Order is also available for inspection at the National
Archives and Records Administration (NARA). For information on the
availability of FAA Order 7400.11D at NARA, email<EMAIL_ADDRESS>or go to https://www.archives.gov/federal-register/cfr/ibr-locations.html.

FOR FURTHER INFORMATION CONTACT: Jeffrey Claypool, Federal Aviation
Administration, Operations Support Group, Central Service Center, 10101
Hillwood Parkway, Fort Worth, TX 76177; telephone<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Authority for This Rulemaking

    The FAA's authority to issue rules regarding aviation safety is
found in Title 49 of the United States Code. Subtitle I, Section 106
describes the authority of the FAA Administrator. Subtitle VII,
Aviation Programs, describes in more detail the scope of the agency's
authority. This rulemaking is promulgated under the authority described
in Subtitle VII, Part A, Subpart I, Section 40103. Under that section,
the FAA is charged with prescribing regulations to assign the use of
airspace necessary to ensure the safety of aircraft and the efficient
use of airspace. This regulation is within the scope of that authority
as it would amend the Class D airspace and the Class E surface airspace
at Spirit of St. Louis Airport, St. Louis, MO, and the Class E airspace
extending upward from 700 feet above the surface at St. Louis Lambert
International Airport, St. Louis, MO, Spirit of St. Louis Airport, and
St. Charles County Smartt Airport, St. Charles, MO, which is contained
within the St. Louis, MO, airspace legal description, and removing St.
Louis Regional Airport, Alton/St. Louis, IL, which is contained within
the St. Louis, MO, airspace legal description, to support instrument
flight rule operations at these airports.

Comments Invited

    Interested parties are invited to participate in this proposed
rulemaking by submitting such written data, views, or arguments, as
they may desire. Comments that provide the factual basis supporting the
views and suggestions presented are particularly helpful in developing
reasoned regulatory decisions on the proposal. Comments are
specifically invited on the overall regulatory, aeronautical, economic,
environmental, and energy-related aspects of the proposal.
Communications should identify both docket numbers and be submitted in
triplicate to the address listed above. Commenters wishing the FAA to
acknowledge receipt of their comments on this notice must submit with
those comments a self-addressed, stamped postcard on which the
following statement is made: ``Comments to Docket No. FAA-2020-0319/
Airspace Docket No. 20-ACE-5.'' The postcard will be date/time stamped
and returned to the commenter.
    All communications received before the specified closing date for
comments will be considered before taking action on the proposed rule.
The proposal contained in this notice may be changed in light of the
comments received. A report summarizing each substantive public contact
with FAA personnel concerned with this rulemaking will be filed in the
docket.

Availability of NPRMs

    An electronic copy of this document may be downloaded through the
internet at http://www.regulations.gov. Recently published rulemaking
documents can also be accessed through the FAA's web page at https://www.faa.gov/air_traffic/publications/airspace_amendments/.
    You may review the public docket containing the proposal, any
comments received, and any final disposition in person in the Dockets
Office (see the ADDRESSES section for the address and phone number)
between 9:00 a.m. and 5:00 p.m., Monday through Friday, except federal
holidays. An informal docket may also be examined during normal
business hours at the Federal Aviation Administration, Air Traffic
Organization, Central Service Center, Operations Support Group, 10101
Hillwood Parkway, Fort Worth, TX 76177.

Availability and Summary of Documents for Incorporation by Reference

    This document proposes to amend FAA Order 7400.11D, Airspace
Designations and Reporting Points, dated August 8, 2019, and effective
September 15, 2019. FAA Order 7400.11D is publicly available as listed
in the ADDRESSES section of this document. FAA Order 7400.11D lists
Class A, B, C, D, and E airspace areas, air traffic service routes, and
reporting points.

The Proposal

    The FAA is proposing an amendment to Title 14 Code of Federal
Regulations (14 CFR) part 71 by:
    Amending the Class D airspace at Spirit of St. Louis Airport, St.
Louis, MO, by updating the bearing of the east extension to 078[deg]
(previously 079[deg]); and updating the bearing of the west extension
to 258[deg] (previously 259[deg]);
    Amending the Class E surface area at Spirit of St. Louis Airport by
updating the bearing of the east extension to 078[deg] (previously
079[deg]); and updating the bearing of the west extension to 258[deg]
(previously 259[deg]);
    Amending the Class E airspace extending upward from 700 feet above
the surface at St. Louis Lambert International Airport, St. Louis, MO,
to within an 8.5-mile (increased from 7.1-mile) radius of the airport;
removing the St. Louis Lambert International Runway 24 Localizer and
the associated extension from the airspace legal description, as it is
no longer needed; removing the St. Louis Lambert International Runway
12R Localizer and the associated extension from the airspace legal
description, as it is no longer needed; removing the St. Louis Lambert
International Runway 30L Localizer and the associated extension from
the airspace legal description, as it is no longer needed; removing the
ZUMAY LOM and the associated extension from the airspace legal
description, as it is no longer needed; removing the OBLIO LOM and the
associated extension from the airspace legal description, as it is no
longer needed; updating the name of the St. Louis Lambert International
Airport (previously Lambert-St. Louis International Airport) to
coincide with the FAA's aeronautical database; updating the bearing of
the east extension of Spirit of St. Louis Airport to 078[deg]
(previously 079[deg]); updating the name of the Spirit of St. Louis:
RWY 26L-LOC (previously Spirit of St. Louis Runway 26L Localizer) to
coincide with the FAA's aeronautical database; updating the extension
east of the Spirit of St. Louis: RWY 26L-LOC to within 3.8 miles
(decreased from 4.1 miles) north and 5.7 miles (decreased from 6.4
miles) south of the 078[deg] (previously 079[deg]) bearing from the
Spirit of St. Louis: RWY 26L-LOC extending from the 6.9-mile radius of
the Spirit of St. Louis Airport to 10.6 miles (decreased from 11.3
miles) east of the Spirit of St. Louis: RWY 26L-LOC; updating the
bearing of the west extension of Spirit

of St. Louis Airport to 258[deg] (previously 259[deg]); adding an
extension at St. Charles County Smartt Airport, St. Charles, MO, within
3.3 miles each side of the 028[deg] radial from the St. Louis VORTAC
extending from the 6.4-mile radius of St. Charles County Smartt Airport
to 12.4 miles northeast of St. Charles County Smartt Airport; and
removing St. Louis Regional Airport, Alton/St. Louis, IL, which is
contained within the St. Louis, MO, airspace legal description, and the
Civic Memorial NDB and the associated north and south extensions from
St. Louis Regional Airport. (A separate airspace review of St. Louis
Regional Airport resulted in the Class E airspace extending upward from
700 feet above the surface at St. Louis Regional Airport no longer
adjoining the St. Louis, MO, Class E airspace extending upward from 700
feet above the surface. As a result, a separate Class E airspace
extending upward from 700 feet above the surface airspace legal
description will be created for Alton/St. Louis, IL, under FAA Docket
No. FAA-2020-0321/Airspace Docket 20-AGL-17 and will be become
effective coincidentally with this action.)
    Class D and E airspace designations are published in paragraph
5000, 6002, and 6005, respectively, of FAA Order 7400.11D, dated August
8, 2019, and effective September 15, 2019, which is incorporated by
reference in 14 CFR 71.1. The Class D and E airspace designations
listed in this document will be published subsequently in the Order.
    FAA Order 7400.11, Airspace Designations and Reporting Points, is
published yearly and effective on September 15.

Regulatory Notices and Analyses

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

Environmental Review

    This proposal will be subject to an environmental analysis in
accordance with FAA Order 1050.1F, ``Environmental Impacts: Policies
and Procedures'' prior to any FAA final regulatory action.

List of Subjects in 14 CFR Part 71

    Airspace, Incorporation by reference, Navigation (air).

The Proposed Amendment

    Accordingly, pursuant to the authority delegated to me, the Federal
Aviation Administration proposes to amend 14 CFR part 71 as follows:

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

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

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

Sec.  71.1  [Amended]

0
 2. The incorporation by reference in 14 CFR 71.1 of FAA Order
7400.11D, Airspace Designations and Reporting Points, dated August 8,
2019, and effective September 15, 2019, is amended as follows:

Paragraph 5000 Class D Airspace.

* * * * *

ACE MO D St. Louis, MO [Amended]

Spirit of St. Louis Airport, MO
    (Lat. 38[deg]39'44'' N, long. 90[deg]39'07'' W)

    That airspace extending upward from the surface to and including
3,000 feet within a 4.4-mile radius of Spirit of St. Louis Airport,
and within 1 mile each side of the 078[deg] bearing from the airport
extending from the 4.4-mile radius to 4.6 miles east of the airport,
and within 1 mile each side of the 258[deg] bearing from the airport
extending from the 4.4-mile radius to 4.6 miles west of the airport,
excluding that airspace within the St. Louis, MO Class B airspace
area. This Class D airspace area is effective during the specific
dates and times established in advance by a Notice to Airmen. The
effective dates and times will thereafter be continuously published
in the Chart Supplement.

Paragraph 6002 Class E Airspace Areas Designated as Surface Areas.

* * * * *

ACE MO E2 St. Louis, MO [Amended]

Spirit of St. Louis Airport, MO
    (Lat. 38[deg]39'44'' N, long. 90[deg]39'07'' W)

    That airspace extending upward from the surface to and including
3,000 feet within a 4.4-mile radius of Spirit of St. Louis Airport,
and within 1 mile each side of the 078[deg] bearing from the airport
extending from the 4.4-mile radius to 4.6 miles east of the airport,
and within 1 mile each side of the 258[deg] bearing from the airport
extending from the 4.4-mile radius to 4.6 miles west of the airport,
excluding that airspace within the St. Louis, MO Class B airspace
area. This Class D airspace area is effective during the specific
dates and times established in advance by a Notice to Airmen. The
effective dates and times will thereafter be continuously published
in the Chart Supplement.

Paragraph 6005 Class E Airspace Areas Extending Upward From 700
Feet or More Above the Surface of the Earth.

* * * * *

ACE MO E5 St. Louis, MO [Amended]

St. Louis Lambert International Airport, MO
    (Lat. 38[deg]44'55'' N, long. 90[deg]22'12'' W)
Spirit of St. Louis Airport, MO
    (Lat. 38[deg]39'44'' N, long. 90[deg]39'07'' W)
St. Charles County Smartt Airport, MO
    (Lat. 38[deg]55'47'' N, long. 90[deg]25'48'' W)
St. Louis VORTAC
    (Lat. 38[deg]51'38'' N, long. 90[deg]28'57'' W)
Spirit of St. Louis: RWY 26L-LOC
    (Lat. 38[deg]39'26'' N, long. 90[deg]39'48'' W)

    That airspace extending upward from 700 feet above the surface
within an 8.5-mile radius of St. Louis Lambert International
Airport, and within a 6.9-mile radius of Spirit of St. Louis
Airport, and within 2.5 miles each side of the 078[deg] bearing from
the Spirit of St. Louis Airport extending from the 6.9-mile radius
of the airport to 8.1 miles east of the airport, and within 3.8
miles north and 5.7 miles south of the 078[deg] bearing from the
Spirit of St. Louis: RWY 26L-LOC extending from the 6.9-mile radius
of the Spirit of St. Louis Airport to 10.6 miles east of the Spirit
of St. Louis: RWY 26L-LOC, and within 3.9 miles each side of the
258[deg] bearing from the Spirit of St. Louis Airport extending from
the 6.9-mile radius of the airport to 10.6 miles west of the
airport, and within a 6.4-mile radius of St. Charles County Smartt
Airport, and within 3.3 miles each side of the 028[deg] radial from
the St. Louis VORTAC extending from the 6.4-mile radius of St.
Charles County Smartt Airport to 12.4 miles northeast of the
airport.

    Issued in Fort Worth, Texas, on April 27, 2020.
Steven Phillips,
Acting Manager, Operations Support Group, ATO Central Service Center.
[FR Doc. 2020-09463 Filed 5-5-20; 8:45 am]
 BILLING CODE 4910-13-P


[Federal Register Volume 82, Number 160 (Monday, August 21, 2017)]
[Proposed Rules]
[Pages 39549-39551]
[FR Doc No: 2017-17509]

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

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 71

[Docket No. FAA-2016-9545; Airspace Docket No. 16-AGL-33]

Proposed Establishment of Class E Airspace; Rosebud, SD

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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

SUMMARY: This action proposes to establish Class E airspace at Rosebud,
SD. Controlled airspace is necessary to accommodate new special
instrument approach procedures developed at Rosebud Sioux Tribal
Airport, for the safety and management of instrument flight rules (IFR)
operations at the airport.

DATES: Comments must be received on or before October 5, 2017.

ADDRESSES: Send comments on this proposal to the U.S. Department of
Transportation, Docket Operations, West Building Ground Floor, Room
W12-140, 1200 New Jersey Avenue SE., Washington, DC 20590; telephone
(202) 366-9826, or<PHONE_NUMBER>. You must identify FAA Docket No.
FAA-2016- 9545; Airspace Docket No. 16-AGL-33, at the beginning of your
comments. You may also submit comments through the Internet at http://www.regulations.gov. You may review the public docket containing the
proposal, any comments received, and any final disposition in person in
the Dockets Office between 9:00 a.m. and 5:00 p.m., Monday through
Friday, except federal holidays.
    FAA Order 7400.11A, Airspace Designations and Reporting Points, and
subsequent amendments can be viewed online at http://www.faa.gov/air_traffic/publications/. For further information, you can contact the
Airspace Policy Group, Federal Aviation Administration, 800
Independence Avenue SW., Washington, DC 20591; telephone: (202) 267-
8783. The Order is also available for inspection at the National
Archives and Records Administration (NARA). For information on the
availability of FAA Order 7400.11A at NARA, call<PHONE_NUMBER>, or go
to http://www.archives.gov/federal_register/

code_of_federal-regulations/ibr_locations.html.
    FAA Order 7400.11, Airspace Designations and Reporting Points, is
published yearly and effective on September 15.

FOR FURTHER INFORMATION CONTACT: Rebecca Shelby, Federal Aviation
Administration, Operations Support Group, Central Service Center, 10101
Hillwood Parkway, Fort Worth, TX 76177; telephone<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Authority for This Rulemaking

    The FAA's authority to issue rules regarding aviation safety is
found in Title 49 of the United States Code. Subtitle I, Section 106
describes the authority of the FAA Administrator. Subtitle VII,
Aviation Programs, describes in more detail the scope of the agency's
authority. This rulemaking is promulgated under the authority described
in Subtitle VII, Part A, Subpart I, Section 40103. Under that section,
the FAA is charged with prescribing regulations to assign the use of
airspace necessary to ensure the safety of aircraft and the efficient
use of airspace. This regulation is within the scope of that authority
as it would establish Class E airspace extending upward from 700 feet
above the surface at Rosebud Sioux Tribal Airport, Rosebud, SD, to
support special instrument approach procedures for IFR operations at
the airport.

Comments Invited

    Interested parties are invited to participate in this proposed
rulemaking by submitting such written data, views, or arguments, as
they may desire. Comments that provide the factual basis supporting the
views and suggestions presented are particularly helpful in developing
reasoned regulatory decisions on the proposal. Comments are
specifically invited on the overall regulatory, aeronautical, economic,
environmental, and energy-related aspects of the proposal.
Communications should identify both docket numbers and be submitted in
triplicate to the address listed above. Commenters wishing the FAA to
acknowledge receipt of their comments on this notice must submit with
those comments a self-addressed, stamped postcard on which the
following statement is made: ``Comments to Docket No. FAA-2016- 9545/
Airspace Docket No. 16-AGL-33.'' The postcard will be date/time stamped
and returned to the commenter.

Availability of NPRMs

    An electronic copy of this document may be downloaded through the
Internet at http://www.regulations.gov. Recently published rulemaking
documents can also be accessed through the FAA's Web page at http://www.faa.gov/air_traffic/publications/airspace_amendments/.
    You may review the public docket containing the proposal, any
comments received, and any final disposition in person in the Dockets
Office (see the ADDRESSES section for the address and phone number)
between 9:00 a.m. and 5:00 p.m., Monday through Friday, except federal
holidays. An informal docket may also be examined during normal
business hours at the Federal Aviation Administration, Air Traffic
Organization, Central Service Center, Operations Support Group, 10101
Hillwood Parkway, Fort Worth, TX 76177.
    All communications received before the specified closing date for
comments will be considered before taking action on the proposed rule.
The proposal contained in this notice may be changed in light of the
comments received. A report summarizing each substantive public contact
with FAA personnel concerned with this rulemaking will be filed in the
docket.

Availability and Summary of Documents for Incorporation by Reference

    This document proposes to amend FAA Order 7400.11A, Airspace
Designations and Reporting Points, dated August 3, 2016, and effective
September 15, 2016. FAA Order 7400.11A is publicly available as listed
in the ADDRESSES section of this document. FAA Order 7400.11A lists
Class A, B, C, D, and E airspace areas, air traffic service routes, and
reporting points.

The Proposal

    The FAA is proposing an amendment to Title 14 Code of Federal
Regulations (14 CFR) part 71 by establishing Class E airspace extending
upward from 700 feet above the surface within a 6.4-mile radius of
Rosebud Sioux Tribal Airport, Rosebud, SD, to accommodate new special
instrument approach procedures. Controlled airspace is needed for the
safety and management of IFR operations at the airport.
    Class E airspace designations are published in paragraph 6005 of
FAA Order 7400.11A, dated August 3, 2016, and effective September 15,
2016, which is incorporated by reference in 14 CFR 71.1. The Class E
airspace designations listed in this document will be published
subsequently in the Order.

Regulatory Notices and Analyses

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

Environmental Review

    This proposal will be subject to an environmental analysis in
accordance with FAA Order 1050.1F, ``Environmental Impacts: Policies
and Procedures'' prior to any FAA final regulatory action.

List of Subjects in 14 CFR Part 71

    Airspace, Incorporation by reference, Navigation (air).

The Proposed Amendment

    Accordingly, pursuant to the authority delegated to me, the Federal
Aviation Administration proposes to amend 14 CFR part 71 as follows:

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

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

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

Sec.  71.1  [Amended]

0
2. The incorporation by reference in 14 CFR 71.1 of FAA Order 7400.11A,
Airspace Designations and Reporting Points, dated August 3, 2016, and
effective September 15, 2016, is amended as follows:

Paragraph 6005: Class E Airspace Areas Extending Upward From 700
Feet or More Above the Surface of the Earth.

* * * * *

AGL SD E5 Rosebud, SD [New]

Rosebud Sioux Tribal Airport, SD
    (Lat. 43[deg]15'31'' N., long. 100[deg]51'34'' W.)

    That airspace extending upward from 700 feet above the surface
within a 6.4-mile radius of Rosebud Sioux Tribal Airport.

    Issued in Fort Worth, TX, on August 14, 2017.
Christopher L. Southerland,
Acting Manager, Operations Support Group, ATO Central Service Center.
[FR Doc. 2017-17509 Filed 8-18-17; 8:45 am]
BILLING CODE 4910-13-P