[Federal Register Volume 81, Number 58 (Friday, March 25, 2016)]
[Notices]
[Pages 16165-16166]
[FR Doc No: 2016-06773]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. CP16-100-000]

Pike County Light & Power Company; Notice of Application

    Take notice that on March 10, 2016, Pike County Light & Power
Company (PCL&P), 402 Broad Street, Milford, Pennsylvania 18337, filed
an application pursuant to section 7(f) of the Natural Gas Act (NGA)
for a service area determination. PCL&P also requests: (1) A finding
that PCL&P continues to qualify as a local distribution company (LDC)
for purposes of section 311 of the Natural Gas Policy Act of 1978
(NGPA); and (2) a waiver of the Commission's accounting and reporting
requirements and other regulatory requirements ordinarily applicable to
natural gas companies under the NGA and NGPA, all as more fully set
forth in the application which is on file with the Commission and open
to public inspection.
    The filing may also be viewed on the web at http://www.ferc.gov
using the ``eLibrary'' link. Enter the docket number excluding the last
three digits in the docket number field to access the document. For
assistance, contact FERC at<EMAIL_ADDRESS>or call toll-
free,<PHONE_NUMBER> or TTY,<PHONE_NUMBER>.
    Specifically, PCL&P requests a service area determination to allow
it to continue to own and operate a 6-inch-diameter gas distribution
pipeline at the Pennsylvania/New York border to receive natural gas in
New York from the facilities of Orange and Rockland Utilities, Inc.
(O&R), an LDC providing utility service in New York, and re-deliver the
gas to PCL&P customers in Pennsylvania. PCL&P's application is related
to O&R's application for a limited jurisdiction blanket certificate of
public convenience and necessity filed in Docket No. CP16-101-000 on
March 10, 2016.
    Any questions regarding this application should be directed to John
L. Carley, Assistant General Counsel, Orange and Rockland Utilities,
Inc., Room 1815-S, 4 Irving Place, New York, New York 10003, (212) 460-
2097 (telephone), or by email at<EMAIL_ADDRESS>    Pursuant to section 157.9 of the Commission's rules, 18 CFR 157.9,
within 90 days of this Notice the Commission staff will either:
Complete its environmental assessment (EA) and place it into the
Commission's public record (eLibrary) for this proceeding; or issue a
Notice of Schedule for Environmental Review. If a Notice of Schedule
for Environmental Review is issued, it will indicate, among other
milestones, the anticipated date for the Commission staff's issuance of
the final environmental impact statement (FEIS) or EA for this
proposal. The filing of the EA in the Commission's public record for
this proceeding or the issuance of a Notice of Schedule for
Environmental Review will serve to notify federal and state agencies of
the timing for the completion of all necessary reviews, and the
subsequent need to complete all federal authorizations within 90 days
of the date of issuance of the Commission staff's FEIS or EA.
    There are two ways to become involved in the Commission's review of
this project. First, any person wishing to obtain legal status by
becoming a party to the proceedings for this project should, on or
before the comment date stated below file with the Federal Energy
Regulatory Commission, 888 First Street NE., Washington, DC 20426, a
motion to intervene in accordance with the requirements of the
Commission's Rules of Practice and Procedure (18 CFR 385.214 or
385.211) and the Regulations under the NGA (18 CFR 157.10). A person
obtaining party status will be placed on the service list maintained by
the Secretary of the Commission and will receive copies of all
documents filed by the applicant and by all other parties. A party must
submit 7 copies of filings made in the proceeding with the Commission
and must mail a copy to the applicant and to every other party. Only
parties to the proceeding can ask for court review of Commission orders
in the proceeding.
    However, a person does not have to intervene in order to have
comments considered. The second way to participate is by filing with
the Secretary of the Commission, as soon as possible, an original and
two copies of comments in support of or in opposition to this project.
The Commission will consider these comments in determining the
appropriate action to be taken, but the filing of a comment alone will
not serve to make the filer a party to the proceeding. The Commission's
rules require that persons filing comments in opposition to the project
provide copies of their protests only to the party or parties directly
involved in the protest.
    Persons who wish to comment only on the environmental review of
this project should submit an original and two copies of their comments
to the Secretary of the Commission. Environmental commenters will be

placed on the Commission's environmental mailing list, will receive
copies of the environmental documents, and will be notified of meetings
associated with the Commission's environmental review process.
Environmental commenters will not be required to serve copies of filed
documents on all other parties. However, the non-party commenters will
not receive copies of all documents filed by other parties or issued by
the Commission (except for the mailing of environmental documents
issued by the Commission) and will not have the right to seek court
review of the Commission's final order.
    The Commission strongly encourages electronic filings of comments,
protests and interventions in lieu of paper using the ``filing'' link
at http://www.ferc.gov. Persons unable to file electronically should
submit original and 5 copies of the protest or intervention to the
Federal Energy regulatory Commission, 888 First Street NE., Washington,
DC 20426.
    Comment Date: April 11, 2016.

    Dated: March 21, 2016.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2016-06773 Filed 3-24-16; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 81, Number 168 (Tuesday, August 30, 2016)]
[Notices]
[Pages 59700-59709]
[FR Doc No: 2016-20735]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78666; File No. SR-BatsBZX-2016-48]

Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of
Filing of a Proposed Rule Change to Rule 14.11(c)(4) To List and Trade
Shares of the iShares iBonds Dec 2023 Term Muni Bond ETF and iShares
iBonds Dec 2024 Term Muni Bond ETF of the iShares U.S. ETF Trust

August 24, 2016.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on August 9, 2016, Bats BZX Exchange, Inc. (``Exchange'' or ``BZX'')
filed with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I and II below, which Items
have been prepared by the Exchange. The Commission is publishing this
notice to solicit comments on the proposed rule change from interested
persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.

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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange filed a proposal to list and trade under BZX Rule
14.11(c)(4) shares of the iShares iBonds Dec 2023 Term Muni Bond ETF
and iShares iBonds Dec 2024 Term Muni Bond ETF (each a ``Fund'' or,
collectively, the ``Funds'') of the iShares U.S. ETF Trust (the
``Trust''). The shares of the Funds are referred to herein as the
``Shares.''
    The text of the proposed rule change is available at the Exchange's
Web site at www.batstrading.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 Exchange 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 these 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
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to list and trade the Shares of the following
series of the Trust under BZX Rule 14.11(c)(4),\3\ which governs the
listing and trading of index fund shares based on fixed income
securities indexes.\4\ The Shares will be offered by the Trust, which
was established as a Delaware statutory trust on March 15, 2001. The
Trust is registered with the Commission as an open-end investment
company and has filed a registration statement on behalf of the Funds
on Form N-1A (``Registration Statement'') with the Commission.\5\ All
statements and representations made in this filing regarding (a) the
description of the portfolio, (b) limitations on portfolio holdings or
reference assets, or (c) the applicability of Exchange rules and
surveillance procedures shall constitute continued listing requirements
for listing the Shares on the Exchange.
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    \3\ The Commission approved BZX Rule 14.11(c) in Securities
Exchange Act Release No. 65225 (August 30, 2011), 76 FR 55148
(September 6, 2011) (SR-BATS-2011-018).
    \4\ The Commission previously has approved a proposed rule
change relating to listing and trading of funds based on municipal
bond indexes. See Securities Exchange Act Release Nos. 78329 (July
14, 2016), 81 FR 47217 (July 20, 2016) (SR-BatsBZX-2016-01) (order
approving proposed rule change relating to the listing and trading
of VanEck Vectors AMT-Free 6-8 Year Municipal Index ETF, VanEck
Vectors AMT-Free 8-12 Year Municipal Index ETF, and VanEck Vectors
AMT-Free 12-17 Year Municipal Index ETF); 67985 (October 4, 2012),
77 FR 61804 (October 11, 2012) (SR-NYSEArca-2012-92) (order
approving proposed rule change relating to the listing and trading
of iShares 2018 S&P AMT-Free Municipal Series and iShares 2019 S&P
AMT-Free Municipal Series under NYSE Arca, Inc. (``NYSE Arca'') Rule
5.2(j)(3), Commentary .02); 72523 (July 2, 2014), 79 FR 39016 (July
9, 2014) (SR-NYSEArca-2014-37) (order approving proposed rule change
relating to the listing and trading of iShares 2020 S&P AMT-Free
Municipal Series under NYSE Arca Rule 5.2(j)(3), Commentary .02);
and 75468 (July 16, 2015), 80 FR 43500 (July 22, 2015) (SR-NYSEArca-
2015-25) (order approving proposed rule change relating to the
listing and trading of the iShares iBonds Dec 2021 AMT-Free Muni
Bond ETF and iShares iBonds Dec 2022 AMT-Free Muni Bond ETF under
NYSE Arca Rule 5.2(j)(3), Commentary .02). The Commission also has
issued a notice of filing and immediate effectiveness of a proposed
rule change relating to listing and trading on the Exchange of the
iShares Taxable Municipal Bond Fund. See Securities Exchange Act
Release No. 63176 (October 25, 2010), 75 FR 66815 (October 29, 2010)
(SR-NYSEArca-2010-94). The Commission has approved two actively
managed funds of the PIMCO ETF Trust that hold municipal bonds. See
Securities Exchange Act Release No. 60981 (November 10, 2009), 74 FR
59594 (November 18, 2009) (SR-NYSEArca-2009-79) (order approving
listing and trading of PIMCO ShortTerm Municipal Bond Strategy Fund
and PIMCO Intermediate Municipal Bond Strategy Fund, among others).
The Commission also has approved listing and trading on the Exchange
of the SPDR Nuveen S&P High Yield Municipal Bond Fund. See
Securities Exchange Act Release No. 63881 (February 9, 2011), 76 FR
9065 (February 16, 2011) (SR-NYSEArca-2010-120).
    \5\ See Registration Statement on Form N-1A for the Trust, dated
October 29, 2015 (File Nos. 333-123257 and 811-10325). The
descriptions of the Funds and the Shares contained herein are based,
in part, on information in the Registration Statement. The
Commission has issued an order granting certain exemptive relief to
the Trust under the Investment Company Act of 1940 (15 U.S.C. 80a-1)
(``1940 Act'') (the ``Exemptive Order''). See Investment Company Act
Release No. 28021 (October 24, 2007) (File No. 812-13426).
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Description of the Shares and the Funds
    BlackRock Fund Advisors is the investment adviser (``BFA'' or
``Adviser'') to the Funds.\6\ State Street Bank and Trust Company is
the administrator, custodian, and transfer agent (``Administrator,''
``Custodian,'' and ``Transfer Agent,'' respectively) for the Trust.
BlackRock Investments, LLC serves as the distributor (``Distributor'')
for the Trust.
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    \6\ BFA is an indirect wholly owned subsidiary of BlackRock,
Inc.
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iShares iBonds Dec 2023 Term Muni Bond ETF
    According to the Registration Statement, the Fund will seek to
replicate as closely as possible, before fees and expenses, the price
and yield performance of the S&P AMT-Free Municipal Series Dec 2023
Index (the ``2023 Index''). As of July 18, 2016, there were 4,612
issues in the 2023 Index. Unless otherwise noted, all statistics
related to the 2023 Index presented hereafter were accurate as of July
18, 2016.
    To be included in the 2023 Index, a bond must have a rating of at
least BBB- by S&P, Baa3 by Moody's, or BBB- by Fitch (except in the
case of a pre-refunded/escrowed to maturity bond). A bond must be rated
by at least one of the three rating agencies in order to qualify for
index inclusion. For the avoidance of doubt, the lowest rating is used
in determining if a bond is investment grade. Potential constituents
must have an outstanding par value of at least $2 million. The bonds
will have a maturity range of January 1, 2023 to December 1, 2023. The
following types of bonds are excluded from the 2023 Index: Bonds
subject to the alternative minimum tax, bonds with early redemption
dates (callable provisions), bonds with sinking fund provisions,
commercial paper, conduit bonds where the obligor is a for-profit
institution, derivative securities, non-rated bonds (except pre-
refunded/escrowed to maturity bonds), notes, taxable municipals,
tobacco bonds, and variable rate debt (except for known step-up/down
coupon schedule bonds). The 2023 Index is calculated using a market
value weighting methodology. The composition of the 2023 Index is
rebalanced monthly.
    The Fund generally invests at least 90% of its assets in the
component securities of the Fund's benchmark index, except during the
last months of the Fund's operations. From time to time when conditions
warrant, however, the Fund may invest at least 80% of its assets in the
component securities of the Fund's benchmark index. The 2023 Index
measures the performance of the non-callable investment-grade, tax-
exempt U.S. municipal bonds with specific annual maturities
(``Municipal Securities''). The Fund has adopted a non-fundamental
investment policy to invest at least 80% of its net assets, plus the
amount of any borrowings for investment purposes, in securities in the
Fund's benchmark index. This policy may be changed without shareholder
approval upon 60 days' prior written notice to shareholders.\7\
Municipal

Securities are fixed and variable rate securities issued in the U.S. by
U.S. states and territories, municipalities and other political
subdivisions, agencies, authorities, and instrumentalities of states
and multi-state agencies and authorities and will include only the
following instruments: General obligation bonds,\8\ limited obligation
bonds (or revenue bonds),\9\ municipal notes,\10\ municipal commercial
paper,\11\ tender option bonds,\12\ variable rate demand obligations
(``VRDOs''),\13\ municipal lease obligations,\14\ stripped
securities,\15\ structured securities,\16\ and zero coupon
securities.\17\
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    \7\ As noted herein, each Fund's policy to invest 80% of its
total assets in securities that comprise the Fund's benchmark index
(the ``80% Investment Policy'') is non-fundamental and may be
changed without shareholder approval upon 60 days' prior written
notice to shareholders. The Exchange notes that, notwithstanding the
foregoing, all statements and representations made in this filing
regarding (a) the description of the portfolios, (b) limitations on
portfolio holdings or reference assets (including, for example, each
Fund's 80% Investment Policy), or (c) the applicability of Exchange
rules and surveillance procedures shall constitute continued listing
requirements for listing the Shares on the Exchange. As noted below,
the issuer has represented to the Exchange that it will advise the
Exchange of any failure by a Fund to comply with the continued
listing requirements (or any changes made with respect to a Fund's
80% Investment Policy), and, pursuant to its obligations under
Section 19(g)(1) of the Exchange Act, the Exchange will surveil for
compliance with the continued listing requirements. If the Fund is
not in compliance with the applicable listing requirements, the
Exchange will commence delisting procedures under Exchange Rule
14.12.
    \8\ General obligation bonds are obligations involving the
credit of an issuer possessing taxing power and are payable from
such issuer's general revenues and not from any particular source.
    \9\ Limited obligation bonds are payable only from the revenues
derived from a particular facility or class of facilities or, in
some cases, from the proceeds of a special excise or other specific
revenue source, and also include industrial development bonds issued
pursuant to former U.S. federal tax law. Industrial development
bonds generally are also revenue bonds and thus are not payable from
the issuer's general revenues. The credit and quality of industrial
development bonds are usually related to the credit of the corporate
user of the facilities. Payment of interest on and repayment of
principal of such bonds is the responsibility of the corporate user
(and/or any guarantor).
    \10\ Municipal notes are shorter-term municipal debt obligations
that may provide interim financing in anticipation of tax
collection, receipt of grants, bond sales, or revenue receipts.
    \11\ Municipal commercial paper is generally unsecured debt that
is issued to meet short-term financing needs.
    \12\ Tender option bonds are synthetic floating-rate or
variable-rate securities issued when long-term bonds are purchased
in the primary or secondary market and then deposited into a trust.
Custodial receipts are then issued to investors, such as the Fund,
evidencing ownership interests in the trust.
    \13\ VRDOs are tax-exempt obligations that contain a floating or
variable interest rate adjustment formula and a right of demand on
the part of the holder thereof to receive payment of the unpaid
principal balance plus accrued interest upon a short notice period
not to exceed seven days.
    \14\ Municipal lease obligations include certificates of
participation issued by government authorities or entities to
finance the acquisition or construction of equipment, land, and/or
facilities.
    \15\ Stripped securities are created when an issuer separates
the interest and principal components of an instrument and sells
them as separate securities. In general, one security is entitled to
receive the interest payments on the underlying assets and the other
to receive the principal payments.
    \16\ Structured securities are privately negotiated debt
obligations where the principal and/or interest is determined by
reference to the performance of an underlying investment, index, or
reference obligation, and may be issued by governmental agencies.
While structured securities are part of the principal holdings of
the Fund, the Issuer represents that such securities, when combined
with those instruments held as part of the other portfolio holdings
described below, will not exceed 20% of the Fund's net assets.
    \17\ Zero coupon securities are securities that are sold at a
discount to par value and do not pay interest during the life of the
security. The discount approximates the total amount of interest the
security will accrue and compound over the period until maturity at
a rate of interest reflecting the market rate of the security at the
time of issuance. Upon maturity, the holder of a zero coupon
security is entitled to receive the par value of the security.
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    In the last months of operation, as the bonds held by the Fund
mature, the proceeds will not be reinvested in bonds but instead will
be held in cash and cash equivalents, including, without limitation,
shares of money market funds advised by BFA or its affiliates
(``BlackRock Cash Funds''), AMT-free tax-exempt municipal notes,
variable rate demand notes and obligations, tender option bonds and
municipal commercial paper. These cash equivalents may not be included
in the Underlying Index. By December 2, 2023, the Underlying Index is
expected to consist entirely of cash earned in this manner. Around the
same time, the Fund will wind up and terminate, and its net assets will
be distributed to then-current shareholders.
    The Fund intends to qualify for and to elect treatment as a
regulated investment company (a ``RIC'') under Subchapter M of the
Internal Revenue Code of 1986, as amended. The Fund will invest its
assets, and otherwise conduct its operations, in a manner that is
intended to satisfy the qualifying income, diversification and
distribution requirements necessary to establish and maintain RIC
qualification under Subchapter M.
Other Portfolio Holdings
    The Fund may also, to a limited extent (under normal circumstances,
less than 20% of the Fund's net assets), engage in transactions in
futures contracts, options, or swaps in order to facilitate trading or
to reduce transaction costs.\18\ The Fund's investments will be
consistent with its investment objective and will not be used to
achieve leveraged returns (i.e. two times or three times the Fund's
benchmark, as described in the Registration Statement).
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    \18\ Derivatives might be included in the Fund's investments to
serve the investment objectives of the Fund. Such derivatives
include only the following: Interest rate futures, interest rate
options, interest rate swaps, and swaps on Municipal Securities
indexes. The derivatives will be centrally cleared and they will be
collateralized. Derivatives are not a principal investment strategy
of the Fund.
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    The Fund may also enter into repurchase and reverse repurchase
agreements for Municipal Securities (collectively, ``Repurchase
Agreements''). Repurchase Agreements involve the sale of securities
with an agreement to repurchase the securities at an agreed-upon price,
date and interest payment and have the characteristics of borrowing as
part of the Fund's principal holdings.\19\
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    \19\ The Fund's exposure to reverse repurchase agreements will
be covered by liquid assets having a value equal to or greater than
such commitments. The use of reverse repurchase agreements is a form
of leverage because the proceeds derived from reverse repurchase
agreements may be invested in additional securities. As further
stated below, the Fund's investments will be consistent with its
investment objective and will not be used to achieve leveraged
returns.
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    The Fund may also invest in short-term instruments (``Short-Term
Instruments''),\20\ which include exchange traded and non-exchange
traded investment companies (including investment companies advised by
BFA

or its affiliates) that invest in money market instruments.
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    \20\ The Fund may invest in Short-Term Instruments, including
money market instruments, on an ongoing basis to provide liquidity
or for other reasons. Money market instruments are generally short-
term investments that include only the following: (i) Shares of
money market funds (including those advised by BFA or otherwise
affiliated with BFA); (ii) obligations issued or guaranteed by the
U.S. government, its agencies or instrumentalities (including
government-sponsored enterprises); (iii) negotiable certificates of
deposit (``CDs''), bankers' acceptances, fixed-time deposits and
other obligations of U.S. and non-U.S. banks (including non-U.S.
branches) and similar institutions; (iv) commercial paper, including
asset-backed commercial paper; (v) non-convertible corporate debt
securities (e.g., bonds and debentures) with remaining maturities at
the date of purchase of not more than 397 days and that satisfy the
rating requirements set forth in Rule 2a-7 under the 1940 Act; and
(vi) short-term U.S. dollar-denominated obligations of non-U.S.
banks (including U.S. branches) that, in the opinion of BFA, are of
comparable quality to obligations of U.S. banks which may be
purchased by the Fund. All money market securities acquired by the
Fund will be rated investment grade. The Fund does not intend to
invest in any unrated money market securities. However, it may do
so, to a limited extent, such as where a rated money market security
becomes unrated, if such money market security is determined by the
Adviser to be of comparable quality. BFA may determine that unrated
securities are of comparable quality based on such credit quality
factors that it deems appropriate, which may include, among other
things, performing an analysis similar, to the extent possible, to
that performed by a nationally recognized statistical rating
organization rating similar securities and issuers.
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Index Overview
    The Exchange is submitting this proposed rule change because the
2023 Index for the Fund does not meet all of the ``generic'' listing
requirements of Rule 14.11(c)(4) applicable to the listing of index
fund shares based on fixed income securities indexes. The 2023 Index
meets all such requirements except for those set forth in Rule
14.11(c)(4)(B)(i)(b).\21\ Specifically, as of July 18, 2016, 5.83% of
the weight of the 2023 Index components have a minimum original
principal amount outstanding of $100 million or more.
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    \21\ Rule 14.11(c)(4)(B)(i)(b) provides that components that in
the aggregate account for at least 75% of the weight of the index or
portfolio each shall have a minimum original principal amount
outstanding of $100 million or more.
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    As of July 18, 2016, 73.56% of the weight of the 2023 Index
components was comprised of individual maturities that were part of an
entire municipal bond offering with a minimum original principal amount
outstanding $100 million or more for all maturities of the offering. In
addition, the total face amount outstanding of issues in the 2023 Index
was approximately $38.5 billion, the market value was $46.4 billion,
and the average dollar amount outstanding of issues in the 2023 Index
was approximately $8.3 million. Further, the most heavily weighted
component represented 1.61% of the weight of the 2023 Index and the
five most heavily weighted components represented 3.66% of the weight
of the 2023 Index.\22\ Therefore, the Exchange believes that,
notwithstanding that the 2023 Index does not satisfy the criterion in
Rule 14.11(c)(4)(B)(i)(b), the 2023 Index is sufficiently broad-based
to deter potential manipulation, given that it is comprised of
approximately 4,612 issues. In addition, the 2023 Index securities are
sufficiently liquid to deter potential manipulation in that a
substantial portion (73.56%) of the 2023 Index weight is comprised of
maturities that are part of a minimum original principal amount
outstanding of $100 million or more, and in view of the substantial
total dollar amount outstanding and the average dollar amount
outstanding of the 2023 Index issues, as referenced above.\23\ 48% of
the 2023 Index weight consisted of issues with a rating of AA/Aa2 or
higher.
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    \22\ Rule 14.11(c)(4)(B)(i)(d) provides that no component fixed-
income security (excluding Treasury Securities, as defined therein)
shall represent more than 30% of the weight of the index or
portfolio, and the five most heavily weighted component fixed-income
securities in the index or portfolio shall not in the aggregate
account for more than 65% of the weight of the index or portfolio.
    \23\ The Adviser represents that when bonds are close
substitutes for one another, pricing vendors can use executed trade
information from all similar bonds as pricing inputs for an
individual security. This can make individual securities more
liquid.
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    The 2023 Index value, calculated and disseminated at least once
daily, as well as the components of the 2023 Index and their percentage
weighting, will be available from major market data vendors. In
addition, the portfolio of securities held by the Fund will be
disclosed on the Fund's Web site at www.iShares.com.
iShares iBonds Dec 2024 Term Muni Bond ETF
    According to the Registration Statement, the Fund will seek to
replicate as closely as possible, before fees and expenses, the price
and yield performance of the S&P AMT-Free Municipal Series Dec 2024
Index (the ``2024 Index''). As of July 18, 2016, there were 3,624
issues in the 2024 Index. Unless otherwise noted, all statistics
related to the 2024 Index presented hereafter were accurate as of July
18, 2016.
    To be included in the 2024 Index, a bond must have a rating of at
least BBB- by S&P, Baa3 by Moody's, or BBB- by Fitch (except in the
case of a pre-refunded/escrowed to maturity bond). A bond must be rated
by at least one of the three rating agencies in order to qualify for
index inclusion. For the avoidance of doubt, the lowest rating is used
in determining if a bond is investment grade. Potential constituents
must have an outstanding par value of at least $2 million. The bonds
will have a maturity range of January 1, 2024 to December 1, 2024. The
following types of bonds are excluded from the 2024 Index: Bonds
subject to the alternative minimum tax, bonds with early redemption
dates (callable provisions), bonds with sinking fund provisions,
commercial paper, conduit bonds where the obligor is a for-profit
institution, derivative securities, non-rated bonds (except pre-
refunded/escrowed to maturity bonds), notes, taxable municipals,
tobacco bonds, and variable rate debt (except for known step-up/down
coupon schedule bonds). The 2024 Index is calculated using a market
value weighting methodology. The composition of the 2024 Index is
rebalanced monthly.
    The Fund generally invests at least 90% of its assets in the
component securities of the Fund's benchmark index, except during the
last months of the Fund's operations. From time to time when conditions
warrant, however, the Fund may invest at least 80% of its assets in the
component securities of the Fund's benchmark index. The 2024 Index
measures the performance of the non-callable investment-grade, tax-
exempt U.S. municipal bonds with specific annual maturities
(``Municipal Securities''). The Fund has adopted a non-fundamental
investment policy to invest at least 80% of its net assets, plus the
amount of any borrowings for investment purposes, in securities in the
Fund's benchmark index. This policy may be changed without shareholder
approval upon 60 days' prior written notice to shareholders.\24\
Municipal Securities are fixed and variable rate securities issued in
the U.S. by U.S. states and territories, municipalities and other
political subdivisions, agencies, authorities, and instrumentalities of
states and multi-state agencies and authorities and will include only
the following instruments: General obligation bonds,\25\ limited
obligation bonds (or revenue bonds),\26\ municipal

notes,\27\ municipal commercial paper,\28\ tender option bonds,\29\
variable rate demand obligations (``VRDOs''),\30\ municipal lease
obligations,\31\ stripped securities,\32\ structured securities,\33\
and zero coupon securities.\34\
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    \24\ As noted herein, each Fund's policy to invest 80% of its
total assets in securities that comprise the Fund's benchmark index
(the ``80% Investment Policy'') is non-fundamental and may be
changed without shareholder approval upon 60 days' prior written
notice to shareholders. The Exchange notes that, notwithstanding the
foregoing, all statements and representations made in this filing
regarding (a) the description of the portfolios, (b) limitations on
portfolio holdings or reference assets (including, for example, each
Fund's 80% Investment Policy), or (c) the applicability of Exchange
rules and surveillance procedures shall constitute continued listing
requirements for listing the Shares on the Exchange. As noted below,
the issuer has represented to the Exchange that it will advise the
Exchange of any failure by a Fund to comply with the continued
listing requirements (or any changes made with respect to a Fund's
80% Investment Policy), and, pursuant to its obligations under
Section 19(g)(1) of the Exchange Act, the Exchange will surveil for
compliance with the continued listing requirements. If the Fund is
not in compliance with the applicable listing requirements, the
Exchange will commence delisting procedures under Exchange Rule
14.12.
    \25\ General obligation bonds are obligations involving the
credit of an issuer possessing taxing power and are payable from
such issuer's general revenues and not from any particular source.
    \26\ Limited obligation bonds are payable only from the revenues
derived from a particular facility or class of facilities or, in
some cases, from the proceeds of a special excise or other specific
revenue source, and also include industrial development bonds issued
pursuant to former U.S. federal tax law. Industrial development
bonds generally are also revenue bonds and thus are not payable from
the issuer's general revenues. The credit and quality of industrial
development bonds are usually related to the credit of the corporate
user of the facilities. Payment of interest on and repayment of
principal of such bonds is the responsibility of the corporate user
(and/or any guarantor).
    \27\ Municipal notes are shorter-term municipal debt obligations
that may provide interim financing in anticipation of tax
collection, receipt of grants, bond sales, or revenue receipts.
    \28\ Municipal commercial paper is generally unsecured debt that
is issued to meet short-term financing needs.
    \29\ Tender option bonds are synthetic floating-rate or
variable-rate securities issued when long-term bonds are purchased
in the primary or secondary market and then deposited into a trust.
Custodial receipts are then issued to investors, such as the Fund,
evidencing ownership interests in the trust.
    \30\ VRDOs are tax-exempt obligations that contain a floating or
variable interest rate adjustment formula and a right of demand on
the part of the holder thereof to receive payment of the unpaid
principal balance plus accrued interest upon a short notice period
not to exceed seven days.
    \31\ Municipal lease obligations include certificates of
participation issued by government authorities or entities to
finance the acquisition or construction of equipment, land, and/or
facilities.
    \32\ Stripped securities are created when an issuer separates
the interest and principal components of an instrument and sells
them as separate securities. In general, one security is entitled to
receive the interest payments on the underlying assets and the other
to receive the principal payments.
    \33\ Structured securities are privately negotiated debt
obligations where the principal and/or interest is determined by
reference to the performance of an underlying investment, index, or
reference obligation, and may be issued by governmental agencies.
While structured securities are part of the principal holdings of
the Fund, the Issuer represents that such securities, when combined
with those instruments held as part of the other portfolio holdings
described below, will not exceed 20% of the Fund's net assets.
    \34\ Zero coupon securities are securities that are sold at a
discount to par value and do not pay interest during the life of the
security. The discount approximates the total amount of interest the
security will accrue and compound over the period until maturity at
a rate of interest reflecting the market rate of the security at the
time of issuance. Upon maturity, the holder of a zero coupon
security is entitled to receive the par value of the security.
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    In the last months of operation, as the bonds held by the Fund
mature, the proceeds will not be reinvested in bonds but instead will
be held in cash and cash equivalents, including, without limitation,
shares of BlackRock Cash Funds, AMT-free tax-exempt municipal notes,
variable rate demand notes and obligations, tender option bonds and
municipal commercial paper. These cash equivalents may not be included
in the Underlying Index. By December 2, 2023, the Underlying Index is
expected to consist entirely of cash earned in this manner. Around the
same time, the Fund will wind up and terminate, and its net assets will
be distributed to then-current shareholders.
    The Fund intends to qualify for and to elect treatment as a RIC
under Subchapter M of the Internal Revenue Code of 1986, as amended.
The Fund will invest its assets, and otherwise conduct its operations,
in a manner that is intended to satisfy the qualifying income,
diversification and distribution requirements necessary to establish
and maintain RIC qualification under Subchapter M.
Other Portfolio Holdings
    The Fund may also, to a limited extent (under normal circumstances,
less than 20% of the Fund's net assets), engage in transactions in
futures contracts, options, or swaps in order to facilitate trading or
to reduce transaction costs.\35\ The Fund's investments will be
consistent with its investment objective and will not be used to
achieve leveraged returns (i.e. two times or three times the Fund's
benchmark, as described in the Registration Statement).
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    \35\ Derivatives might be included in the Fund's investments to
serve the investment objectives of the Fund. Such derivatives
include only the following: Interest rate futures, interest rate
options, interest rate swaps, and swaps on Municipal Securities
indexes. The derivatives will be centrally cleared and they will be
collateralized. Derivatives are not a principal investment strategy
of the Fund.
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    The Fund may also enter into repurchase and reverse repurchase
agreements for Municipal Securities (collectively, ``Repurchase
Agreements''). Repurchase Agreements involve the sale of securities
with an agreement to repurchase the securities at an agreed-upon price,
date and interest payment and have the characteristics of borrowing as
part of the Fund's principal holdings.\36\
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    \36\ The Fund's exposure to reverse repurchase agreements will
be covered by liquid assets having a value equal to or greater than
such commitments. The use of reverse repurchase agreements is a form
of leverage because the proceeds derived from reverse repurchase
agreements may be invested in additional securities. As further
stated below, the Fund's investments will be consistent with its
investment objective and will not be used to achieve leveraged
returns.
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    The Fund may also invest in short-term instruments (``Short-Term
Instruments''),\37\ which include exchange traded and non-exchange
traded investment companies (including investment companies advised by
BFA or its affiliates) that invest in money market instruments.
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    \37\ The Fund may invest in Short-Term Instruments, including
money market instruments, on an ongoing basis to provide liquidity
or for other reasons. Money market instruments are generally short-
term investments that include only the following: (i) Shares of
money market funds (including those advised by BFA or otherwise
affiliated with BFA); (ii) obligations issued or guaranteed by the
U.S. government, its agencies or instrumentalities (including
government-sponsored enterprises); (iii) negotiable certificates of
deposit (``CDs''), bankers' acceptances, fixed-time deposits and
other obligations of U.S. and non-U.S. banks (including non-U.S.
branches) and similar institutions; (iv) commercial paper, including
asset-backed commercial paper; (v) non-convertible corporate debt
securities (e.g., bonds and debentures) with remaining maturities at
the date of purchase of not more than 397 days and that satisfy the
rating requirements set forth in Rule 2a-7 under the 1940 Act; and
(vi) short-term U.S. dollar-denominated obligations of non-U.S.
banks (including U.S. branches) that, in the opinion of BFA, are of
comparable quality to obligations of U.S. banks which may be
purchased by the Fund. All money market securities acquired by the
Fund will be rated investment grade. The Fund does not intend to
invest in any unrated money market securities. However, it may do
so, to a limited extent, such as where a rated money market security
becomes unrated, if such money market security is determined by the
Adviser to be of comparable quality. BFA may determine that unrated
securities are of comparable quality based on such credit quality
factors that it deems appropriate, which may include, among other
things, performing an analysis similar, to the extent possible, to
that performed by a nationally recognized statistical rating
organization rating similar securities and issuers.
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Index Overview
    The Exchange is submitting this proposed rule change because the
2024 Index for the Fund does not meet all of the ``generic'' listing
requirements of Rule 14.11(c)(4) applicable to the listing of index
fund shares based on fixed income securities indexes. The 2024 Index
meets all such requirements except for those set forth in Rule
14.11(c)(4)(B)(i)(b).\38\ Specifically, as of July 18, 2016, 5.72% of
the weight of the 2024 Index components have a minimum original
principal amount outstanding of $100 million or more.
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    \38\ Rule 14.11(c)(4)(B)(i)(b) provides that components that in
the aggregate account for at least 75% of the weight of the index or
portfolio each shall have a minimum original principal amount
outstanding of $100 million or more.
---------------------------------------------------------------------------

    As of July 18, 2016, 72.27% of the weight of the 2024 Index
components was comprised of individual maturities that were part of an
entire municipal bond offering with a minimum original principal amount
outstanding $100 million or more for all maturities of the offering. In
addition, the total face amount outstanding of issues in the 2024 Index
was approximately $29.9 billion, the market value is $36.4 billion, and
the average dollar amount outstanding of issues in the 2024 Index was
approximately $8.3 million. Further, the most heavily weighted
component represented 0.72% of the weight of the 2024 Index and the
five most heavily weighted components represented 2.74% of the weight
of the 2024 Index.\39\ Therefore, the Exchange believes that,
notwithstanding that the

2024 Index does not satisfy the criterion in Rule 14.11(c)(4)(B)(i)(b),
the 2024 Index is sufficiently broad-based to deter potential
manipulation, given that it is comprised of approximately 3,624 issues.
In addition, the 2024 Index securities are sufficiently liquid to deter
potential manipulation in that a substantial portion (72.27%) of the
2024 Index weight is comprised of maturities that are part of a minimum
original principal amount outstanding of $100 million or more, and in
view of the substantial total dollar amount outstanding and the average
dollar amount outstanding of the 2024 Index issues, as referenced
above.\40\ 47.71% of the 2024 Index weight consisted of issues with a
rating of AA/Aa2 or higher.
---------------------------------------------------------------------------

    \39\ Rule 14.11(c)(4)(B)(i)(d) provides that no component fixed-
income security (excluding Treasury Securities, as defined therein)
shall represent more than 30% of the weight of the index or
portfolio, and the five most heavily weighted component fixed-income
securities in the index or portfolio shall not in the aggregate
account for more than 65% of the weight of the index or portfolio.
    \40\ The Adviser represents that when bonds are close
substitutes for one another, pricing vendors can use executed trade
information from all similar bonds as pricing inputs for an
individual security. This can make individual securities more
liquid.
---------------------------------------------------------------------------

    The 2024 Index value, calculated and disseminated at least once
daily, as well as the components of the 2024 Index and their percentage
weighting, will be available from major market data vendors. In
addition, the portfolio of securities held by the Fund will be
disclosed on the Fund's Web site at www.iShares.com.
Correlation Among Municipal Bond Instruments With Common
Characteristics
    With respect to the Funds, the Adviser represents that the nature
of the municipal bond market and municipal bond instruments makes it
feasible to categorize individual issues represented by CUSIPs (i.e.,
the specific identifying number for a security) into categories
according to common characteristics, specifically, rating, geographical
region, purpose, and maturity. Bonds that share similar characteristics
tend to trade similarly to one another; therefore, within these
categories, the issues may be considered fungible from a portfolio
management perspective, allowing one CUSIP to be represented by another
that shares similar characteristics for purposes of developing an
investment strategy. Therefore, while 5.83% of the weight of the 2023
Index and 5.72% of the 2024 Index components have a minimum original
principal amount outstanding of $100 million or more, the nature of the
municipal bond market makes the issues relatively fungible for
investment purposes when aggregated into categories such as ratings,
geographical region, purpose and maturity. In addition, within a single
municipal bond issuer, there are often multiple contemporaneous or
sequential issuances that have the same rating, structure and maturity,
but have different CUSIPs; these separate issues by the same issuer are
also likely to trade similarly to one another.
    The Adviser represents that the Funds are managed utilizing the
principle that municipal bond issues are generally fungible in nature
when sharing common characteristics, and specifically make use of the
four categories referred to above. In addition, this principle is used
in, and consistent with, the portfolio construction process in order to
facilitate the creation and redemption process, and to enhance
liquidity (among other benefits, such as reducing transaction costs),
while still allowing each Fund to closely track its reference index.
Net Asset Value
    According to the Registration Statement, the net asset value
(``NAV'') of each Fund will be determined each business day as of the
close of trading (ordinarily 4:00 p.m. Eastern time) on the Exchange.
Any assets or liabilities denominated in currencies other than the U.S.
dollar are converted into U.S. dollars at the current market rates on
the date of valuation as quoted by one or more sources.
    The values of each Fund's portfolio securities are based on the
securities' closing prices, when available. In the absence of a last
reported sales price, or if no sales were reported, and for other
assets for which market quotes are not readily available, values may be
based on quotes obtained from a quotation reporting system, established
market makers or by an outside independent pricing service. Municipal
Securities, repurchase agreements, reverse repurchase agreements, and
money market instruments with maturities of more than 60 days are
normally valued on the basis of quotes from brokers or dealers,
established market makers or an outside independent pricing service.
Prices obtained by an outside independent pricing service may use
information provided by market makers or estimates of market values
obtained from yield data related to investments or securities with
similar characteristics and may use a computerized grid matrix of
securities and its evaluations in determining what it believes is the
fair value of the portfolio securities. Short-term investments,
including money market instruments having a maturity of 60 days or
less, are valued at amortized cost. Futures contracts will be valued at
the settlement price established each day by the board or exchange on
which they are traded. Exchange-traded options will be valued at the
closing price in the market where such contracts are principally
traded. Swaps will be valued based on valuations provided by
independent, third-party pricing agents. Securities of non-exchange-
traded investment companies will be valued at NAV. Exchange-traded
investment companies will be valued at the last reported sale price on
the primary exchange on which they are traded.
Creation and Redemption of Shares
    The NAV of the Funds will be determined each business day as of the
close of trading, (normally 4:00 p.m. Eastern time) on the exchange.
The Funds currently anticipate that a ``Creation Unit'' will consist of
50,000 Shares, though this number may change from time to time,
including prior to the listing of a Fund. The exact number of Shares
that will comprise a Creation Unit will be disclosed in the
Registration Statement of each Fund. The Trust will issue and sell
Shares of the Funds only in Creation Units on a continuous basis
through the Distributor, without an initial sales load (but subject to
transaction fees), at their NAV per Share next determined after
receipt, on any business day, of an order in proper form.
    The consideration for purchase of a Creation Unit of a Fund
generally will consist of either (i) the in-kind deposit of a
designated portfolio of fixed income securities (the ``Deposit
Securities'') per each Creation Unit and the Cash Component (defined
below), computed as described below, or (ii) as permitted or required
by the Funds, of cash. The Cash Component together with the Deposit
Securities, as applicable, are referred to as the ``Fund Deposit,''
which represents the minimum initial and subsequent investment amount
for Shares. The Cash Component represents the difference between the
NAV of a Creation Unit and the market value of Deposit Securities and
may include a Dividend Equivalent Payment. The ``Dividend Equivalent
Payment'' enables the Funds to make a complete distribution of
dividends on the next dividend payment date, and is an amount equal, on
a per Creation Unit basis, to the dividends on all the securities held
by each of the Funds (``Fund Securities'') with ex-dividend dates
within the accumulation period for such distribution (the
``Accumulation Period''), net of expenses and liabilities for such
period, as if all of the Fund Securities had been held by the Trust for
the entire Accumulation Period. The Accumulation Period begins on the
ex-

dividend date for each Fund and ends on the next ex-dividend date.
    The Administrator, through the National Securities Clearing
Corporation (``NSCC''), makes available on each business day,
immediately prior to the opening of business on the Exchange (currently
9:30 a.m. Eastern time), the list of the names and the required number
of shares of each Deposit Security to be included in the current Fund
Deposit (based on information at the end of the previous business day)
as well as the Cash Component for each Fund. Such Fund Deposit is
applicable, subject to any adjustments as described below, in order to
effect creations of Creation Units of each Fund until such time as the
next-announced Fund Deposit composition is made available.
    Shares may be redeemed only in Creation Units at their NAV next
determined after receipt of a redemption request in proper form by the
Distributor,\41\ only on a business day and only through a
Participating Party or DTC Participant who has executed a Participation
Agreement.
---------------------------------------------------------------------------

    \41\ To be eligible to place orders with the Distributor to
create Creation Units of the Funds, an entity or person either must
be: (1) a ``Participating Party,'' i.e., a broker-dealer or other
participant in the Clearing Process through the Continuous Net
Settlement System of the NSCC; or (2) a DTC Participant (as defined
below); and, in either case, must have executed an agreement with
the Distributor and the Transfer Agent (as it may be amended from
time to time in accordance with its terms) (``Participant
Agreement''). DTC Participants are participants of the Depository
Trust Company (``DTC'') that acts as securities depositary for Index
Fund Shares. A Participating Party and DTC Participant are
collectively referred to as an ``Authorized Participant.''
---------------------------------------------------------------------------

    The Administrator, through NSCC, makes available immediately prior
to the opening of business on the Exchange (currently 9:30 a.m. Eastern
time) on each day that the Exchange is open for business, the Fund
Securities that will be applicable (subject to possible amendment or
correction) to redemption requests received in proper form (as defined
below) on that day.
    Unless cash redemptions are permitted or required for the Fund, the
redemption proceeds for a Creation Unit generally consist of Fund
Securities as announced by the Administrator on the business day of the
request for redemption, plus cash in an amount equal to the difference
between the NAV of the Shares being redeemed, as next determined after
a receipt of a request in proper form, and the value of the Fund
Securities, less the redemption transaction fee and variable fees
described below. Should the Fund Securities have a value greater than
the NAV of the Shares being redeemed, a compensating cash payment to
the Trust equal to the differential plus the applicable redemption
transaction fee will be required to be arranged for by or on behalf of
the redeeming shareholder. Each Fund reserves the right to honor a
redemption request by delivering a basket of securities or cash that
differs from the Fund Securities.\42\
---------------------------------------------------------------------------

    \42\ The Adviser represents that, to the extent that the Trust
permits or requires a ``cash in lieu'' amount, such transactions
will be effected in the same or equitable manner for all Authorized
Participants.
---------------------------------------------------------------------------

    Orders to redeem Creation Units of the Funds must be delivered
through a DTC Participant that has executed the Participant Agreement
with the Distributor and with the Trust. A DTC Participant who wishes
to place an order for redemption of Creation Units of a Fund to be
effected need not be a Participating Party, but such orders must state
that redemption of Creation Units of the Fund will instead be effected
through transfer of Creation Units of the Fund directly through DTC. An
order to redeem Creation Units of a Fund is deemed received by the
Administrator on the transmittal date if (i) such order is received by
the Administrator not later than 4:00 p.m. Eastern time on such
transmittal date; (ii) such order is preceded or accompanied by the
requisite number of Shares of Creation Units specified in such order,
which delivery must be made through DTC to the Administrator no later
than 11:00 a.m. Eastern time, on such transmittal date (the ``DTC Cut-
Off-Time''); and (iii) all other procedures set forth in the
Participant Agreement are properly followed.
    After the Administrator has deemed an order for redemption
received, the Administrator will initiate procedures to transfer the
requisite Fund Securities (or contracts to purchase such Fund
Securities) which are expected to be delivered within three business
days and the cash redemption payment to the redeeming beneficial owner
by the third business day following the transmittal date on which such
redemption order is deemed received by the Administrator.
Availability of Information
    Each Fund's Web site, which will be publicly available prior to the
public offering of Shares, will include a form of the prospectus for
the Fund that may be downloaded. The Web site will include additional
quantitative information updated on a daily basis, including, for the
Fund: (1) the prior business day's reported NAV, daily trading volume,
and a calculation of the premium and discount of the Bid/Ask Price
against the NAV; and (2) data in chart format displaying the frequency
distribution of discounts and premiums of the daily Bid/Ask Price
against the NAV, within appropriate ranges, for each of the four
previous calendar quarters. Daily trading volume information for the
Funds will also be available in the financial section of newspapers,
through subscription services such as Bloomberg, Thomson Reuters, and
International Data Corporation, which can be accessed by authorized
participants and other investors, as well as through other electronic
services, including major public Web sites. On each business day,
before commencement of trading in Shares during Regular Trading Hours
\43\ on the Exchange, each Fund will disclose on its Web site the
identities and quantities of the portfolio of securities and other
assets in the daily disclosed portfolio held by the Funds that formed
the basis for each Fund's calculation of NAV at the end of the previous
business day. The daily disclosed portfolio will include, as
applicable: the ticker symbol; CUSIP number or other identifier, if
any; a description of the holding (including the type of holding, such
as the type of swap); the identity of the security, index or other
asset or instrument underlying the holding, if any; for options, the
option strike price; quantity held (as measured by, for example, par
value, notional value or number of shares, contracts, or units);
maturity date, if any; coupon rate, if any; effective date, if any;
market value of the holding; and the percentage weighting of the
holding in each Fund's portfolio. The Web site and information will be
publicly available at no charge. The value, components, and percentage
weightings of each of the Indices will be calculated and disseminated
at least once daily and will be available from major market data
vendors. Rules governing the Indices are available on Barclays' Web
site and in each respective Fund's prospectus.
---------------------------------------------------------------------------

    \43\ Regular Trading Hours are 9:30 a.m. to 4:00 p.m. Eastern
Time.
---------------------------------------------------------------------------

    In addition, for each Fund, an estimated value, defined in BZX Rule
14.11(c)(6)(A) as the ``Intraday Indicative Value,'' that reflects an
estimated intraday value of each Fund's portfolio, will be
disseminated. Moreover, the Intraday Indicative Value will be based
upon the current value for the components of the daily disclosed
portfolio and will be updated and widely disseminated by one or more
major market data vendors at least every 15 seconds during the
Exchange's Regular Trading Hours.\44\ In addition,

the quotations of certain of each Fund's holdings may not be updated
during U.S. trading hours if updated prices cannot be ascertained.
---------------------------------------------------------------------------

    \44\ Currently, it is the Exchange's understanding that several
major market data vendors display and/or make widely available
Intraday Indicative Values published via the Consolidated Tape
Association (``CTA'') or other data feeds.
---------------------------------------------------------------------------

    The dissemination of the Intraday Indicative Value, together with
the daily disclosed portfolio, will allow investors to determine the
value of the underlying portfolio of the Funds on a daily basis and
provide a close estimate of that value throughout the trading day.
    Quotation and last sale information for the Shares of each Fund
will be available via the CTA high speed line. Quotation information
for investment company securities (excluding ETFs) may be obtained
through nationally recognized pricing services through subscription
agreements or from brokers and dealers who make markets in such
securities. Price information regarding Municipal Securities and non-
exchange traded assets, including investment companies, derivatives,
money market instruments, repurchase agreements, and reverse repurchase
agreements is available from third party pricing services and major
market data vendors. For exchange-traded assets, including investment
companies, futures, and options, such intraday information is available
directly from the applicable listing exchange.
    Initial and Continued Listing
    The Shares of each Fund will conform to the initial and continued
listing criteria under BZX Rule 14.11(c)(4), except for those set forth
in 14.11(c)(4)(B)(i)(b). The Exchange represents that, for initial and/
or continued listing, the Funds and the Trust must be in compliance
with Rule 10A-3 under the Act.\45\ A minimum of 50,000 Shares of each
Fund will be outstanding at the commencement of trading on the
Exchange. The Exchange will obtain a representation from the issuer of
the Shares that the NAV per Share for each Fund will be calculated
daily and will be made available to all market participants at the same
time.
---------------------------------------------------------------------------

    \45\ See 17 CFR 240.10A-3.
---------------------------------------------------------------------------

Trading Halts
    With respect to trading halts, the Exchange may consider all
relevant factors in exercising its discretion to halt or suspend
trading in the Shares of the Funds. The Exchange will halt trading in
the Shares under the conditions specified in BZX Rule 11.18. Trading
may be halted because of market conditions or for reasons that, in the
view of the Exchange, make trading in the Shares inadvisable. These may
include: (1) the extent to which trading is not occurring in the
securities and/or the financial instruments composing the daily
disclosed portfolio of the Funds; or (2) whether other unusual
conditions or circumstances detrimental to the maintenance of a fair
and orderly market are present. Trading in the Shares also will be
subject to Rule 14.11(c)(1)(B)(iv), which sets forth circumstances
under which Shares of a Fund may be halted.
Trading Rules
    The Exchange deems the Shares to be equity securities, thus
rendering trading in the Shares subject to the Exchange's existing
rules governing the trading of equity securities. The Exchange will
allow trading in the Shares from 8:00 a.m. until 5:00 p.m. Eastern Time
and has the appropriate rules to facilitate transactions in the Shares
during all trading sessions. As provided in BZX Rule 11.11(a), the
minimum price variation for quoting and entry of orders in securities
traded on the Exchange is $0.01, with the exception of securities that
are priced less than $1.00, for which the minimum price variation for
order entry is $0.0001.
Surveillance
    The Exchange believes that its surveillance procedures are adequate
to properly monitor the trading of the Shares on the Exchange during
all trading sessions and to deter and detect violations of Exchange
rules and the applicable federal securities laws. Trading of the Shares
through the Exchange will be subject to the Exchange's surveillance
procedures for derivative products, including Index Fund Shares. The
issuer has represented to the Exchange that it will advise the Exchange
of any failure by the Fund to comply with the continued listing
requirements, and, pursuant to its obligations under Section 19(g)(1)
of the Exchange Act, the Exchange will surveil for compliance with the
continued listing requirements. If the Fund is not in compliance with
the applicable listing requirements, the Exchange will commence
delisting procedures under Exchange Rule 14.12. The Exchange may obtain
information regarding trading in the Shares and the underlying shares
in exchange traded equity securities via the ISG, from other exchanges
that are members or affiliates of the ISG, or with which the Exchange
has entered into a comprehensive surveillance sharing agreement.\46\ In
addition, the Exchange is able to access, as needed, trade information
for certain fixed income instruments reported to FINRA's Trade
Reporting and Compliance Engine (``TRACE''). FINRA also can access data
obtained from the Municipal Securities Rulemaking Board (``MSRB'')
relating to municipal bond trading activity for surveillance purposes
in connection with trading in the Shares. In addition, the Exchange may
obtain information regarding trading in the Shares and the underlying
shares in exchange-traded investment companies, futures, and options
from markets or other entities that are members of ISG or with which
the Exchange has in place a comprehensive surveillance sharing
agreement. The Exchange prohibits the distribution of material non-
public information by its employees.
---------------------------------------------------------------------------

    \46\ For a list of the current members of ISG, see
www.isgportal.org. The Exchange notes that not all components of the
Disclosed Portfolio for the Fund may trade on markets that are
members of ISG or with which the Exchange has in place a
comprehensive surveillance sharing agreement.
---------------------------------------------------------------------------

Information Circular
    Prior to the commencement of trading, the Exchange will inform its
members in an Information Circular of the special characteristics and
risks associated with trading the Shares. Specifically, the Information
Circular will discuss the following: (1) the procedures for purchases
and redemptions of Shares in Creation Units (and that Shares are not
individually redeemable); (2) BZX Rule 3.7, which imposes suitability
obligations on Exchange members with respect to recommending
transactions in the Shares to customers; (3) how information regarding
the Intraday Indicative Value is disseminated; (4) the risks involved
in trading the Shares during the Pre-Opening \47\ and After Hours
Trading Sessions \48\ when an updated Intraday Indicative Value will
not be calculated or publicly disseminated; (5) the requirement that
members deliver a prospectus to investors purchasing newly issued
Shares prior to or concurrently with the confirmation of a transaction;
and (6) trading information.
---------------------------------------------------------------------------

    \47\ The Pre-Opening Session is from 8:00 a.m. to 9:30 a.m.
Eastern Time.
    \48\ The After Hours Trading Session is from 4:00 p.m. to 5:00
p.m. Eastern Time.
---------------------------------------------------------------------------

    In addition, the Information Circular will advise members, prior to
the commencement of trading, of the prospectus delivery requirements
applicable to the Funds. Members purchasing Shares from the Funds for
resale to investors will deliver a prospectus to such investors. The
Information Circular will also discuss any exemptive, no-action, and

interpretive relief granted by the Commission from any rules under the
Act.
    In addition, the Information Circular will reference that each Fund
is subject to various fees and expenses described in the Registration
Statement. The Information Circular will also disclose the trading
hours of the Shares of the Funds and the applicable NAV calculation
time for the Shares. The Information Circular will disclose that
information about the Shares of the Funds will be publicly available on
the Funds' Web site. In addition, the Information Circular will
reference that the Trust is subject to various fees and expenses
described in each Fund's Registration Statement.
2. Statutory Basis
    The Exchange believes that the proposal is consistent with Section
6(b) of the Act \49\ in general and Section 6(b)(5) of the Act \50\ in
particular in that it is designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade, to foster cooperation and coordination with
persons engaged in facilitating transactions in securities, to remove
impediments to and perfect the mechanism of a free and open market and
a national market system and, in general, to protect investors and the
public interest.
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    \49\ 15 U.S.C. 78f.
    \50\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes that the proposed rule change is designed to
prevent fraudulent and manipulative acts and practices in that the
Shares will be listed and traded on the Exchange pursuant to the
listing criteria in BZX Rule 14.11(c). The Exchange believes that its
surveillances, which generally focus on detecting securities trading
outside of their normal patterns which could be indicative of
manipulative or other violative activity, and associated surveillance
procedures are adequate to properly monitor the trading of the Shares
on the Exchange during all trading sessions and to deter and detect
violations of Exchange rules and the applicable federal securities
laws. The Exchange will communicate as needed regarding trading in the
Shares with other markets or other entities that are members of the
Intermarket Surveillance group (``ISG''), and may obtain trading
information regarding trading in the Shares from such markets or
entities. The Exchange can also access data obtained from the Municipal
Securities Rulemaking Board relating to municipal bond trading activity
for surveillance purposes in connection with trading in the Shares. The
Exchange is able to access, as needed, trade information for certain
fixed income securities held by a Fund reported to FINRA's TRACE. FINRA
also can access data obtained from the Municipal Securities Rulemaking
Board (``MSRB'') relating to municipal bond trading activity for
surveillance purposes in connection with trading in the Shares. In
addition, the Exchange may obtain information regarding trading in the
Shares and the underlying shares in exchange-traded investment
companies, futures, and options from markets or other entities that are
members of ISG or with which the Exchange has in place a comprehensive
surveillance sharing agreement.
    The Index Provider is not a broker-dealer, but is affiliated with a
broker-dealer and has implemented a ``fire wall'' with respect to such
broker-dealer regarding access to information concerning the
composition and/or changes to the Indices. The Index Provider has also
implemented procedures designed to prevent the use and dissemination of
material, non-public information regarding the Indices.
    As of July 18, 2016, the 2023 Index had the following
characteristics: there were 4,612 issues; 5.83% of the weight of
components had a minimum original principal amount outstanding of $100
million or more; 73.56% of the weight of components was comprised of
individual maturities that were part of an entire municipal bond
offering with a minimum original principal amount outstanding of $100
million or more for all maturities of the offering; total face amount
outstanding of issues in the 2023 Index was approximately $38.5
billion, the market value is $46.4 billion, and the average dollar
amount outstanding per issue was approximately $8.3 million; the most
heavily weighted component represented 1.61% of the 2023 Index and the
five most heavily weighted components represented 3.66% of the 2023
Index. Therefore, the Exchange believes that, notwithstanding that the
2023 Index does not satisfy the criterion in BZX Rule
14.11(c)(4)(B)(i), the 2023 Index is sufficiently broad-based to deter
potential manipulation in that a substantial portion (73.56%) of the
2023 Index weight is comprised of maturities that are part of a minimum
original principal amount outstanding of $100 million or more, and in
view of the substantial total dollar amount outstanding and the average
dollar amount outstanding of index issues.
    As of July 18, 2016, the 2024 Index had the following
characteristics: there were 3,624 issues; 5.72% of the weight of
components had a minimum original principal amount outstanding of $100
million or more; 72.27% of the weight of components was comprised of
individual maturities that were part of an entire municipal bond
offering with a minimum original principal amount outstanding of $100
million or more for all maturities of the offering; the total face
amount outstanding of issues in the 2024 Index was approximately $29.9
billion, the market value is $36.4 billion, and the average dollar
amount outstanding of issues in the 2024 Index was approximately $8.3
million; the most heavily weighted component represented 0.72% of the
2024 Index and the five most heavily weighted components represented
2.74% of the 2024 Index. Therefore, the Exchange believes that,
notwithstanding that the 2024 Index does not satisfy the criterion in
BZX Rule 14.11(c)(4)(B)(i), the 2024 Index is sufficiently broad-based
to deter potential manipulation in that a substantial portion (72.27%)
of the 2024 Index weight is comprised of maturities that are part of a
minimum original principal amount outstanding of $100 million or more,
and in view of the substantial total dollar amount outstanding and the
average dollar amount outstanding of index issues.
    The value, components, and percentage weightings of each of the
Indices will be calculated and disseminated at least once daily and
will be available from major market data vendors. In addition, the
portfolio of securities held by the Funds will be disclosed on the
Funds' Web site at www.iShares.com. The intraday indicative value for
Shares of the Funds will be disseminated by one or more major market
data vendors, updated at least every 15 seconds during Regular Trading
Hours. The Adviser represents that bonds that share similar
characteristics, as described above, tend to trade similarly to one
another; therefore, within these categories, the issues may be
considered fungible from a portfolio management perspective. Within a
single municipal bond issuer, [sic] Adviser represents that separate
issues by the same issuer are also likely to trade similarly to one
another.
    The proposed rule change is designed to promote just and equitable
principles of trade and to protect investors and the public interest in
that a large amount of information will be publicly available regarding
the Funds and the Shares, thereby promoting market transparency. The
Funds' portfolio holdings will be disclosed on the Funds' Web site
daily after the close of trading on the Exchange and prior to the
opening of

trading on the Exchange the following day. Moreover, the IIV will be
widely disseminated by one or more major market data vendors at least
every 15 seconds during Regular Trading Hours. The current value of
each of the Indices will be disseminated by one or more major market
data vendors at least once per day. Information regarding market price
and trading volume of the Shares will be continually available on a
real-time basis throughout the day on brokers' computer screens and
other electronic services, and quotation and last sale information will
be available via the CTA high-speed line. The Web site for the Funds
will include the prospectus for the Funds and additional data relating
to NAV and other applicable quantitative information. Moreover, prior
to the commencement of trading, the Exchange will inform its Members in
an information circular of the special characteristics and risks
associated with trading the Shares. If the Exchange becomes aware that
the NAV is not being disseminated to all market participants at the
same time, it will halt trading in the Shares until such time as the
NAV is available to all market participants. With respect to trading
halts, the Exchange may consider all relevant factors in exercising its
discretion to halt or suspend trading in the Shares of the Funds.
Trading also may be halted because of market conditions or for reasons
that, in the view of the Exchange, make trading in the Shares
inadvisable. These may include: (1) the extent to which trading is not
occurring in the securities and/or the financial instruments composing
the daily disclosed portfolio of each Fund; or (2) whether other
unusual conditions or circumstances detrimental to the maintenance of a
fair and orderly market are present. Trading in the Shares also will be
subject to Rule 14.11(c)(1)(B)(iv), which sets forth circumstances
under which Shares of a Fund may be halted. If the IIV of any of the
Funds or value of the Indices are not being disseminated as required,
the Exchange may halt trading during the day in which the interruption
to the dissemination of the IIV or index value occurs.
    The proposed rule change is designed to perfect the mechanism of a
free and open market and, in general, to protect investors and the
public interest in that it will facilitate the listing and trading of
additional types of exchange-traded funds that holds municipal bonds
and that will enhance competition among market participants, to the
benefit of investors and the marketplace. As noted above, the Exchange
has in place surveillance procedures relating to trading in the Shares
and may obtain information in the Shares and the underlying shares in
exchange-traded investment companies, futures, and options via ISG from
other exchanges that are members of ISG or with which the Exchange has
entered into a comprehensive surveillance sharing agreement. In
addition, investors will have ready access to information regarding the
IIV and quotation and last sale information for the Shares.
    For the above reasons, the Exchange believes that the proposed rule
change is consistent with the requirements of Section 6(b)(5) of the
Act.

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

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

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

    The Exchange has neither solicited nor received written comments on
the proposed rule change.

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

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

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-BatsBZX-2016-48 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-BatsBZX-2016-48. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such filing will also be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-BatsBZX-2016-48 and should
be submitted on or before September 20, 2016.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\51\
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    \51\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-20735 Filed 8-29-16; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 78, Number 31 (Thursday, February 14, 2013)]
[Rules and Regulations]
[Page 10523]
[FR Doc No: 2013-03353]

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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 100

[Docket No. USCG-2012-1034]

Special Local Regulation; Southern California Annual Marine
Events for the San Diego Captain of the Port Zone

AGENCY: Coast Guard, DHS.

ACTION: Notice of enforcement of regulation.

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SUMMARY: The Coast Guard will enforce the 2013 California Ironman
Triathlon Special Local Regulation located in Oceanside Harbor in
Oceanside, California from 6:40 a.m. through 9:30 a.m. on March 30,
2013. This action is necessary to provide to provide for the safety of
the participants, crew, spectators, sponsor vessels of the event, and
general users of the waterway. During the enforcement period, no
spectators shall anchor, block, loiter in, or impede the transit of
participants or official patrol vessels in the regulated area during
the effective dates and times, unless cleared for such entry by Coast
Guard Patrol Commander or through an official supporting vessel.

DATES: The regulations in 33 CFR 100.1101 will be enforced from 6:40
a.m. to 9:30 a.m. on March 30, 2013.

FOR FURTHER INFORMATION CONTACT: If you have questions on this notice,
call or email Petty Officer Bryan Gollogly, Waterways Management, U.S.
Coast Guard Sector San Diego, CA; telephone<PHONE_NUMBER>, email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: The Coast Guard will enforce the Special
Local Regulation for the 2013 California Ironman Triathlon in 33 CFR
100.1101 (Item 2 on Table 1) from 6:40 a.m. through 9:30 a.m. on March
30, 2013.
    Under provisions of 33 CFR 100.1101, a vessel may not enter the
regulated area, unless it receives permission from the COTP. Spectator
vessels may safely transit outside the regulated area but may not
anchor, block, loiter, or impede the transit of participants or
official patrol vessels. The Coast Guard may be assisted by other
Federal, State, or Local law enforcement agencies in enforcing this
regulation.
    This notice is issued under authority of 33 CFR 100.1101 and 5
U.S.C. 552 (a). In addition to this notice in the Federal Register, the
Coast Guard will provide the maritime community with extensive advance
notification of this enforcement period via the Local Notice to
Mariners. If the Captain of the Port or his designated representative
determines that the regulated area need not be enforced for the full
duration stated on this notice, he or she may use a Broadcast Notice to
Mariners to grant general permission to enter the regulated area.

    Dated: January 22, 2013.
S.M. Mahoney,
Captain, United States Coast Guard, Captain of the Port San Diego.
[FR Doc. 2013-03353 Filed 2-13-13; 8:45 am]
BILLING CODE 9110-04-P