[Federal Register Volume 81, Number 129 (Wednesday, July 6, 2016)]
[Notices]
[Pages 44056-44063]
[FR Doc No: 2016-15913]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78191; File No. SR-NYSEArca-2016-87]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
of Proposed Rule Change Relating to Listing and Trading of Shares of
First Trust Horizon Managed Volatility Domestic ETF and First Trust
Horizon Managed Volatility Developed International ETF Under NYSE Arca
Equities Rule 8.600

June 29, 2016.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that on June 16, 2016, NYSE Arca, Inc. (the ``Exchange'' or
``NYSE Arca'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to list and trade shares of the following
under NYSE Arca Equities Rule 8.600 (``Managed Fund Shares''): First
Trust Horizon Managed Volatility Domestic ETF and First Trust Horizon
Managed Volatility Developed International ETF. The proposed rule
change is available on the Exchange's Web site at www.nyse.com, at the
principal office of

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

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

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

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

1. Purpose
    The Exchange proposes to list and trade the shares (``Shares'') of
the following under NYSE Arca Equities Rule 8.600, which governs the
listing and trading of Managed Fund Shares \4\ on the Exchange: First
Trust Horizon Managed Volatility Domestic ETF and First Trust Horizon
Managed Volatility Developed International ETF (each a ``Fund'' and,
collectively, the ``Funds'').\5\ The Shares will be offered by First
Trust Exchange-Traded Fund III (the ``Trust''), which is organized as a
Massachusetts business trust and is registered with the Commission as
an open-end management investment company.\6\
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    \4\ A Managed Fund Share is a security that represents an
interest in an investment company registered under the Investment
Company Act of 1940 (15 U.S.C. 80a-1) (``1940 Act'') organized as an
open-end investment company or similar entity that invests in a
portfolio of securities selected by its investment adviser
consistent with its investment objectives and policies. In contrast,
an open-end investment company that issues Investment Company Units,
listed and traded on the Exchange under NYSE Arca Equities Rule
5.2(j)(3), seeks to provide investment results that correspond
generally to the price and yield performance of a specific foreign
or domestic stock index, fixed income securities index or
combination thereof.
    \5\ The Commission has previously approved listing and trading
on the Exchange of a number of actively managed funds under Rule
8.600. See, e.g., Securities Exchange Act Release Nos. 57801 (May 8,
2008), 73 FR 27878 (May 14, 2008) (SR-NYSEArca-2008-31) (order
approving Exchange listing and trading of twelve actively-managed
funds of the WisdomTree Trust); 60460 (August 7, 2009), 74 FR 41468
(August 17, 2009) (SR-NYSEArca-2009-55) (order approving listing of
Dent Tactical ETF); 62502 (July 15, 2010), 75 FR 42471 (July 21,
2010) (SR-NYSEArca-2010-57)(order approving listing of AdvisorShares
WCM/BNY Mellon Focused Growth ADR ETF); 69251 (March 28, 2013), 78
FR 20162 (April 3, 2013) (SR-NYSEArca-2013-14) (order approving
listing of Cambria Shareholder Yield ETF).
    \6\ The Trust is registered under the 1940 Act. On June 6, 2016,
the Trust filed with the Commission an amendment to its registration
statement on Form N-1A under the Securities Act of 1933 (``1933
Act'') and under the 1940 Act relating to the Funds (File Nos. 333-
176976 and 811-22245) (``Registration Statement''). The description
of the operation of the Trust and the Funds herein is based, in
part, on the Registration Statement. In addition, the Commission has
issued an order granting certain exemptive relief to the Trust under
the 1940 Act. See Investment Company Act Release No. 28468 (October
27, 2008) (File No. 812-13477 (``Exemptive Order'').
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    The investment adviser to the Funds will be First Trust Advisors
L.P. (the ``Adviser'' or ``First Trust''). Horizon Investments, LLC
(``Sub-Adviser'') will be the sub-adviser to the Funds. First Trust
Portfolios L.P. (the ``Distributor'') will be the principal underwriter
and distributor of the Funds' Shares. Brown Brothers Harriman & Co.
(``BBH'') will serve as administrator, custodian and transfer agent for
the Funds.
    Commentary .06 to Rule 8.600 provides that, if the investment
adviser to the investment company issuing Managed Fund Shares is
affiliated with a broker-dealer, such investment adviser shall erect a
``fire wall'' between the investment adviser and the broker-dealer with
respect to access to information concerning the composition and/or
changes to such investment company portfolio. In addition, Commentary
.06 further requires that personnel who make decisions on the open-end
fund's portfolio composition must be subject to procedures designed to
prevent the use and dissemination of material nonpublic information
regarding the open-end fund's portfolio.\7\ Commentary .06 to Rule
8.600 is similar to Commentary .03(a)(i) and (iii) to NYSE Arca
Equities Rule 5.2(j)(3); however, Commentary .06 in connection with the
establishment of a ``fire wall'' between the investment adviser and the
broker-dealer reflects the applicable open-end fund's portfolio, not an
underlying benchmark index, as is the case with index-based funds. The
Adviser and Sub-Adviser are not broker-dealers, but the Adviser is
affiliated with First Trust Portfolios L.P., a broker-dealer. The Sub-
Adviser is not currently affiliated with a broker-dealer. The Adviser
has implemented a fire wall with respect to its broker-dealer affiliate
regarding access to information concerning the composition and/or
changes to the portfolios. In the event (a) the Adviser or the Sub-
Adviser becomes registered as a broker-dealer or newly affiliated with
a broker-dealer, or (b) any new adviser or sub-adviser is a registered
broker-dealer or becomes affiliated with a broker-dealer, it will
implement a fire wall with respect to its relevant personnel or its
broker-dealer affiliate regarding access to information concerning the
composition and/or changes to the portfolio, and will be subject to
procedures designed to prevent the use and dissemination of material
non-public information regarding such portfolio.
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    \7\ An investment adviser to an open-end fund is required to be
registered under the Investment Advisers Act of 1940 (the ``Advisers
Act''). As a result, the Adviser and Sub-Adviser and their related
personnel are subject to the provisions of Rule 204A-1 under the
Advisers Act relating to codes of ethics. This Rule requires
investment advisers to adopt a code of ethics that reflects the
fiduciary nature of the relationship to clients as well as
compliance with other applicable securities laws. Accordingly,
procedures designed to prevent the communication and misuse of non-
public information by an investment adviser must be consistent with
Rule 204A-1 under the Advisers Act. In addition, Rule 206(4)-7 under
the Advisers Act makes it unlawful for an investment adviser to
provide investment advice to clients unless such investment adviser
has (i) adopted and implemented written policies and procedures
reasonably designed to prevent violation, by the investment adviser
and its supervised persons, of the Advisers Act and the Commission
rules adopted thereunder; (ii) implemented, at a minimum, an annual
review regarding the adequacy of the policies and procedures
established pursuant to subparagraph (i) above and the effectiveness
of their implementation; and (iii) designated an individual (who is
a supervised person) responsible for administering the policies and
procedures adopted under subparagraph (i) above.
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First Trust Horizon Managed Volatility Domestic ETF
    According to the Registration Statement, the investment objective
of the Fund will be to provide capital appreciation. Under normal
market conditions,\8\ the Fund will seek to achieve its investment
objective by investing at least 80% of its net assets (including
investment borrowings) in common stocks of domestic companies listed
and traded on U.S. national securities exchanges that the Sub-Adviser
believes exhibit low future expected volatility. The goal of this
strategy will be to capture upside price movements in rising markets
and reduce downside risk when markets decline. To implement this
strategy, in selecting securities for the Fund from a portfolio of
eligible securities, the Sub-Adviser will employ volatility forecasting
models to forecast future expected volatility. The strategy will
largely be quantitative and rules-based, but will

also include multiple parameters over which the Sub-Adviser may
exercise discretion (including, but not limited to, the number of
holdings and the weightings of particular holdings) in connection with
its active management of the Fund.
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    \8\ The term ``under normal market conditions'' includes, but is
not limited to, the absence of extreme volatility or trading halts
in the equity markets or the financial markets generally;
operational issues causing dissemination of inaccurate market
information; or force majeure type events such as systems failure,
natural or man-made disaster, act of God, armed conflict, act of
terrorism, riot or labor disruption or any similar intervening
circumstance.
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    To begin, the Sub-Adviser will gather pricing and generate return
data for the starting universe. The Sub-Adviser then will conduct
volatility forecasts for all constituents. The constituent securities
will then be ranked from low to high based on their volatility
forecasts for inclusion in the portfolio. The Sub-Adviser will target a
subset of the starting universe as sorted by future expected
volatility. Once the final portfolio is selected, the Sub-Adviser will
measure co-movements of the selected securities using advanced
statistical techniques designed to reduce estimation error. In the
final portfolio construction, the Sub-Adviser will give larger weights
to securities with lower future expected volatility and will use a
``tuning'' parameter to adjust how aggressive the weighting scheme is
depending on market conditions.
    The Fund is classified as ``non-diversified'' under the 1940 Act.
First Trust Horizon Managed Volatility Developed International ETF
    According to the Registration Statement, the investment objective
of the Fund will be to provide capital appreciation. Under normal
market conditions, the Fund will seek to achieve its investment
objective by investing at least 80% of its net assets (including
investment borrowings) in common stocks of developed market companies
\9\ listed and traded on non-U.S. exchanges that the Sub-Adviser
believes exhibit low future expected volatility. The goal of this
strategy will be to capture upside price movements in rising markets
and reduce downside risk when markets decline. To implement this
strategy, in selecting securities for the Fund from a portfolio of
eligible securities, the Sub-Adviser will employ volatility forecasting
models to forecast future expected volatility. The strategy will
largely be quantitative and rules-based, but will also include multiple
parameters over which the Sub-Adviser may exercise discretion
(including, but not limited to, the number of holdings and the
weightings of particular holdings) in connection with its active
management of the Fund.
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    \9\ The term ``developed market companies'' means those
companies (i) whose securities are traded principally on a stock
exchange in a developed market country, (ii) that are organized
under the laws of, or have a primary business office in, a developed
market country, or (iii) that have at least 50% of their assets in,
or derive at least 50% of their revenues or profits from, a
developed market country.
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    To begin, the Sub-Adviser will gather pricing and generate return
data for the starting universe. The Sub-Adviser then will conduct
volatility forecasts for all constituents. The constituent securities
will then be ranked from low to high based on their volatility
forecasts for inclusion in the portfolio. The Sub-Adviser will target a
subset of the starting universe as sorted by future expected
volatility. Once the final portfolio is selected, the Sub-Adviser will
measure co-movements of the selected securities using advanced
statistical techniques designed to reduce estimation error. In the
final portfolio construction, the Sub-Adviser will give larger weights
to securities with lower future expected volatility and will use a
``tuning'' parameter to adjust how aggressive the weighting scheme is
depending on market conditions.\10\ The Fund's investments in the
common stocks of developed market companies may be in the form of
``Depositary Receipts'', as described below.\11\
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    \10\ The non-U.S. equity securities in the Fund's portfolio will
meet the following criteria on a continual basis: (1) Non-U.S.
equity securities each shall have a minimum market value of at least
$100 million; (2) non-U.S. equity securities 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; (3) the most heavily weighted non-U.S.
equity security shall not exceed 25% of the weight of the Fund's
entire portfolio, and, to the extent applicable, the five most
heavily weighted non-U.S. equity securities shall not exceed 60% of
the weight of the Fund's entire portfolio; and (4) each non-U.S.
equity security shall be listed and traded on an exchange that has
last-sale reporting. For purposes of this filing, the term ``non-
U.S. equity securities'' includes common stocks of foreign
corporations and ``Depositary Receipts'' (as described below,
excluding Depositary Receipts that are listed on a U.S. exchange).
    \11\ Depositary Receipts include American Depositary Receipts
(``ADRs''), Global Depositary Receipts (``GDRs'') and European
Depositary Receipts (``EDRs''). ADRs are receipts typically issued
by an American bank or trust company that evidence ownership of
underlying securities issued by a foreign corporation. EDRs are
receipts issued by a European bank or trust company evidencing
ownership of securities issued by a foreign corporation. GDRs are
receipts issued throughout the world that evidence a similar
arrangement. ADRs, EDRs and GDRs may trade in foreign currencies
that differ from the currency the underlying security for each ADR,
EDR or GDR principally trades in. Global shares are the actual
(ordinary) shares of a non-U.S. company which trade both in the home
market and the United States. Generally, ADRs, in registered form,
are designed for use in the U.S. securities markets. EDRs, in
registered form, are used to access European markets. GDRs, in
registered form, are tradable both in the United States and in
Europe and are designed for use throughout the world. All Depositary
Receipts in which the Fund invests will be traded on a U.S. or a
non-U.S. exchange.
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    The Fund is classified as ``non-diversified'' under the 1940 Act.
Non-Principal Investments
    According to the Registration Statement, while each Fund, under
normal market conditions, will invest at least 80% of its net assets in
the securities and financial instruments described above, a Fund may
invest up to 20% of its net assets in the following securities and
instruments.
    Each Fund may invest in cash and cash equivalents.\12\
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    \12\ For purposes of this filing, cash equivalents are the
following: (i) Short-term obligations issued by the U.S. Government
that have remaining terms to maturity of not more than 397 days;
(ii) negotiable certificates of deposit, fixed time deposits, and
bankers' acceptances of U.S. and foreign banks and similar
institutions; (iii) commercial paper rated at the date of purchase
``Prime-1'' by Moody's Investors Service, Inc. or ``A-1+'' or ``A-
1'' by Standard & Poor's or, if unrated, of comparable quality as
determined by the Adviser or Sub-Adviser; (iv) repurchase
agreements; and (v) money market mutual funds.
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    The First Trust Horizon Managed Volatility Domestic ETF may invest
in exchange-traded ADRs.
Creation and Redemption of Shares
    Each Fund will issue and redeem Shares on a continuous basis at net
asset value (``NAV'') \13\ only in large blocks of Shares (``Creation
Units'') in transactions with authorized participants, generally
including broker-dealers and large institutional investors
(``Authorized Participants''). Creation Units generally will consist of
50,000 Shares, although this may change from time to time. Creation
Units, however, are not expected to consist of less than 50,000 Shares.
As described in the Registration Statement and consistent with the
Exemptive Order, a Fund will issue and redeem Creation Units in
exchange for an in-kind portfolio of instruments and/or cash in lieu of
such instruments (the ``Creation Basket'').\14\ In addition, if there
is a difference between the NAV attributable to a Creation Unit and the
market value of the Creation Basket exchanged for the Creation Unit,
the party conveying instruments (which may include cash-in-lieu
amounts) with the lower value will pay to the other an amount in cash

equal to the difference (referred to as the ``Cash Component'').
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    \13\ The NAV of a Fund's Shares generally will be calculated
once daily Monday through Friday as of the close of regular trading
on the New York Stock Exchange (``NYSE''), generally 4:00 p.m.,
Eastern Time. NAV per Share will be calculated by dividing a Fund's
net assets by the number of Fund Shares outstanding.
    \14\ It is expected that the Funds will typically issue and
redeem Creation Units on an in-kind basis; however, subject to, and
in accordance with, the provisions of the Exemptive Order, the Funds
may, at times, issue and redeem Creation Units on a cash (or
partially cash) basis.
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    Creations and redemptions must be made by or through an Authorized
Participant that has executed an agreement that has been agreed to by
the Distributor and BBH with respect to creations and redemptions of
Creation Units. All standard orders to create Creation Units must be
received by the transfer agent no later than the closing time of the
regular trading session on the NYSE (ordinarily 4:00 p.m., Eastern
Time) (the ``Closing Time'') in each case on the date such order is
placed in order for the creation of Creation Units to be effected based
on the NAV of Shares as next determined on such date after receipt of
the order in proper form. Shares may be redeemed only in Creation Units
at their NAV next determined after receipt not later than the Closing
Time of a redemption request in proper form by a Fund through the
transfer agent and only on a business day. A Fund's custodian, through
the National Securities Clearing Corporation, will make available on
each business day, prior to the opening of business of the Exchange,
the list of the names and quantities of the instruments comprising the
Creation Basket, as well as the estimated Cash Component (if any), for
that day. The published Creation Basket will apply until a new Creation
Basket is announced on the following business day prior to commencement
of trading in the Shares.
Investment Restrictions
    On a temporary basis, including for defensive purposes, during the
initial invest-up period and during periods of high cash inflows or
outflows, a Fund may depart from its principal investment strategies;
for example, it may hold a higher than normal proportion of its assets
in cash. During such periods, a Fund may not be able to achieve its
investment objective. A Fund may adopt a defensive strategy when the
Adviser and/or the Sub-Adviser believes securities in which such Fund
normally invests have elevated risks due to political or economic
factors and in other extraordinary circumstances.
    Each Fund may hold up to an aggregate amount of 15% of its net
assets in illiquid assets (calculated at the time of investment) deemed
illiquid by the Adviser and/or the Sub-Adviser.\15\ Each Fund will
monitor its portfolio liquidity on an ongoing basis to determine
whether, in light of current circumstances, an adequate level of
liquidity is being maintained, and will consider taking appropriate
steps in order to maintain adequate liquidity if, through a change in
values, net assets, or other circumstances, more than 15% of a Fund's
net assets are held in illiquid assets. Illiquid assets include
securities subject to contractual or other restrictions on resale and
other instruments that lack readily available markets as determined in
accordance with Commission staff guidance.\16\
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    \15\ In reaching liquidity decisions, the Adviser and/or the
Sub-Adviser may consider the following factors: The frequency of
trades and quotes for the security; the number of dealers wishing to
purchase or sell the security and the number of other potential
purchasers; dealer undertakings to make a market in the security;
and the nature of the security and the nature of the marketplace
trades (e.g., the time needed to dispose of the security, the method
of soliciting offers, and the mechanics of transfer).
    \16\ The Commission has stated that long-standing Commission
guidelines have required open-end funds to hold no more than 15% of
their net assets in illiquid securities and other illiquid assets.
See Investment Company Act Release No. 28193 (March 11, 2008), 73 FR
14618 (March 18, 2008), footnote 34. See also, Investment Company
Act Release No. 5847 (October 21, 1969), 35 FR 19989 (December 31,
1970) (Statement Regarding ``Restricted Securities''); Investment
Company Act Release No. 18612 (March 12, 1992), 57 FR 9828 (March
20, 1992) (Revisions of Guidelines to Form N-1A). A fund's portfolio
security is illiquid if it cannot be disposed of in the ordinary
course of business within seven days at approximately the value
ascribed to it by the fund. See Investment Company Act Release No.
14983 (March 12, 1986), 51 FR 9773 (March 21, 1986) (adopting
amendments to Rule 2a-7 under the 1940 Act); Investment Company Act
Release No. 17452 (April 23, 1990), 55 FR 17933 (April 30, 1990)
(adopting Rule 144A under the 1933 Act).
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    Each Fund intends to qualify annually and to elect to be treated as
a regulated investment company (``RIC'') under the Internal Revenue
Code.\17\
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    \17\ 26 U.S.C. 851.
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    The Funds will not invest in options, futures, or swaps.
    Each Fund's investments will be consistent with such Fund's
investment objective and will not be used to enhance leverage. That is,
while a Fund will be permitted to borrow as permitted under the 1940
Act, such Fund's investments will not be used to seek performance that
is the multiple or inverse multiple (i.e., 2Xs and 3Xs) of such Fund's
broad-based securities market index (as defined in Form N-1A).
Net Asset Value
    Each Fund's NAV will be determined as of the close of regular
trading on the NYSE on each day the NYSE is open for trading. If the
NYSE closes early on a valuation day, the NAV will be determined as of
that time. NAV per Share will be calculated for a Fund by taking the
value of a Fund's total assets, including interest or dividends accrued
but not yet collected, less all liabilities, including accrued expenses
and dividends declared but unpaid, and dividing such amount by the
total number of Shares outstanding. The result, rounded to the nearest
cent, will be the NAV per Share. All valuations will be subject to
review by the Board of Trustees of the Trust (``Trust Board'') or its
delegate.
    Each Fund's investments will be valued daily. As described more
specifically below, investments traded on an exchange (i.e., a
regulated market), will generally be valued at market value prices that
represent last sale or official closing prices. In addition, as
described more specifically below, non-exchange traded investments will
generally be valued using prices obtained from third party pricing
services (each, a ``Pricing Service'').\18\ If, however, valuations for
any of the Funds' investments cannot be readily obtained as provided in
the preceding manner, or the Pricing Committee of the Adviser (the
``Pricing Committee'') \19\ questions the accuracy or reliability of
valuations that are so obtained, such investments will be valued at
fair value, as determined by the Pricing Committee, in accordance with
valuation procedures (which may be revised from time to time) adopted
by the Trust Board (the ``Valuation Procedures''), and in accordance
with provisions of the 1940 Act. The Pricing Committee's fair value
determinations may require subjective judgments about the value of an
investment. The fair valuations attempt to estimate the value at which
an investment could be sold at the time of pricing, although actual
sales could result in price differences, which could be material.
Valuing the Funds' investments using fair value pricing can result in
using prices for those investments (particularly, as applicable,
investments that trade in foreign markets) that may differ from current
market valuations.
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    \18\ The Adviser may use various Pricing Services or discontinue
the use of any Pricing Services, as approved by the Trust Board from
time to time.
    \19\ The Pricing Committee will be subject to procedures
designed to prevent the use and dissemination of material non-public
information regarding each Fund's portfolio.
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    Certain securities in which a Fund may invest will not be listed on
any securities exchange or board of trade. Such securities will
typically be bought and sold by institutional investors in individually
negotiated private transactions that function in many respects like an
over-the-counter secondary market, although typically no formal market
makers will exist. Certain

securities, particularly debt securities, will have few or no trades,
or trade infrequently, and information regarding a specific security
may not be widely available or may be incomplete. Accordingly,
determinations of the value of debt securities may be based on
infrequent and dated information. Because there is less reliable,
objective data available, elements of judgment may play a greater role
in valuation of debt securities than for other types of securities.
    The information summarized below is based on the Valuation
Procedures as currently in effect; however, as noted above, the
Valuation Procedures are amended from time to time and, therefore, such
information is subject to change.
    In determining NAV, the Funds' investments will typically be valued
as follows:
    (1) Common stocks and other equity securities listed on any
national or foreign exchange other than The NASDAQ Stock Market
(``NASDAQ'') and the London Stock Exchange Alternative Investment
Market (``AIM'') will typically be valued at the last sale price on the
exchange on which they are principally traded on the business day as of
which such value is being determined. Securities listed on NASDAQ or
AIM will typically be valued at the official closing price on the
business day as of which such value is being determined. If there has
been no sale on such day, or no official closing price in the case of
securities listed on NASDAQ or AIM, such securities will typically be
valued using fair value pricing.
    Equity securities traded on more than one securities exchange will
typically be valued at the last sale price or official closing price,
as applicable, on the business day as of which such value is being
determined at the close of the exchange representing the principal
market for such securities.
    (2) The following cash equivalents will typically be valued using
information provided by a Pricing Service: Except as provided in (3)
below, short-term obligations issued by the U.S. Government; bankers'
acceptances and commercial paper. Debt instruments may be valued at
evaluated mean prices, as provided by Pricing Services. Pricing
Services typically value non-exchange traded instruments utilizing a
range of market-based inputs and assumptions, including readily
available market quotations obtained from broker-dealers making markets
in such instruments, cash flows, and transactions for comparable
instruments. In pricing certain instruments, the Pricing Services may
consider information about an instrument's issuer or market activity
provided by the Adviser and/or the Sub-Adviser.
    (3) Short-term obligations issued by the U.S. Government, bankers'
acceptances and commercial paper having a remaining maturity of 60 days
or less when purchased will typically be valued at cost adjusted for
amortization or premiums and accretion of discounts, provided the
Pricing Committee has determined that the use of amortized cost is an
appropriate reflection of value given market and issuer-specific
conditions existing at the time of the determination.
    (4) Repurchase agreements will typically be valued as follows:
Overnight repurchase agreements will be valued at amortized cost when
it represents the best estimate of value. Term repurchase agreements
(i.e., those whose maturity exceeds seven days) will be valued at the
average of the bid quotations obtained daily from at least two
recognized dealers.
    (5) Certificates of deposit and fixed time deposits will typically
be valued at cost.
    (6) Money market mutual funds will typically be valued at their net
asset values as reported by such funds to Pricing Services.
    Because foreign exchanges may be open on different days than the
days during which an investor may purchase or sell Shares, the value of
certain assets may change on days when investors are not able to
purchase or sell Shares. Assets denominated in foreign currencies will
be translated into U.S. dollars at the exchange rate of such currencies
against the U.S. dollar as provided by a Pricing Service. The value of
assets denominated in foreign currencies will be converted into U.S.
dollars at the exchange rates in effect at the time of valuation.
Availability of Information
    The Funds' Web site (www.ftportfolios.com), which will be publicly
available prior to the public offering of Shares, will include a form
of the prospectus for the Funds that may be downloaded. The Funds' Web
site will include additional quantitative information updated on a
daily basis, including, for each Fund, (1) daily trading volume, the
prior business day's reported closing price, NAV and mid-point of the
bid/ask spread at the time of calculation of such NAV (the ``Bid/Ask
Price''),\20\ and a calculation of the premium and discount of the Bid/
Ask Price against the NAV, and (2) data in chart format displaying the
frequency distribution of discounts and premiums of the daily Bid/Ask
Price against the NAV, within appropriate ranges, for each of the four
previous calendar quarters. On each business day, before commencement
of trading in Shares in the Core Trading Session (9:30 a.m. to 4:00
p.m. E.T.) on the Exchange, a Fund will disclose on its Web site the
Disclosed Portfolio as defined in NYSE Arca Equities Rule 8.600(c)(2)
that will form the basis for such Fund's calculation of NAV at the end
of the business day.\21\
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    \20\ The Bid/Ask Price of Shares of each Fund will be determined
using the mid-point of the highest bid and the lowest offer on the
Exchange as of the time of calculation of a Fund's NAV. The records
relating to Bid/Ask Prices will be retained by each Fund and its
service providers.
    \21\ Under accounting procedures followed by a Fund, trades made
on the prior business day (``T'') will be booked and reflected in
NAV on the current business day (``T+1''). Accordingly, a Fund will
be able to disclose at the beginning of the business day the
portfolio that will form the basis for the NAV calculation at the
end of the business day.
---------------------------------------------------------------------------

    On a daily basis, each Fund will disclose on its Web site the
following information regarding each portfolio holding, as applicable
to the type of holding: Ticker symbol, CUSIP number or other
identifier, if any; a description of the holding (including the type of
holding); the identity of the security, commodity, index or other asset
or instrument underlying the holding, if any; maturity date, if any;
coupon rate, if any; effective date, if any; market value of the
holding; and the percentage weighting of the holding in a Fund's
portfolio. The Web site information will be publicly available at no
charge.
    In addition, a basket composition file, which will include the
security names and share quantities required to be delivered in
exchange for a Fund's Shares, together with estimates and actual cash
components, will be publicly disseminated daily prior to the opening of
the NYSE via the NSCC. The basket will represent one Creation Unit of a
Fund.
    Information regarding the intra-day value of the Shares of each
Fund, which is the Portfolio Indicative Value (``PIV'') as defined in
NYSE Arca Equities Rule 8.600 (c)(3), will be widely disseminated every
15 seconds throughout the Exchange's Core Trading Session by one or
more major market data vendors.\22\ The PIV should not be viewed as a
``real-time'' update of the NAV per Share of a Fund because the PIV may
not be calculated in the same

manner as the NAV, which is computed once a day, generally at the end
of the business day. The price of a non-U.S. security that is primarily
traded on a non-U.S. exchange shall be updated, using the last sale
price, every 15 seconds throughout the trading day, provided, that upon
the closing of such non-U.S. exchange, the closing price of the
security, after being converted to U.S. dollars, will be used.
Furthermore, in calculating the PIV of a Fund's Shares, exchange rates
may be used throughout the Core Trading Session that may differ from
those used to calculate the NAV per Share of a Fund and consequently
may result in differences between the NAV and the PIV.
---------------------------------------------------------------------------

    \22\ Currently, it is the Exchange's understanding that several
major market data vendors widely disseminate PIVs taken from the
Consolidated Tape Association (``CTA'') or other data feeds.
---------------------------------------------------------------------------

    Quotation and last sale information for the Shares and U.S.
exchange-traded equity securities will be available via the CTA high-
speed line, and from the national securities exchange on which they are
listed. Price information regarding non-U.S. equities held by a Fund
will be available from the exchanges trading such assets and from major
market data vendors. Price information for cash and cash equivalents
will be available from major market data vendors. Price information
regarding each asset class in which a Fund will invest will generally
be available through nationally recognized data service providers
through subscription agreements.
    Investors can also obtain each Fund's Statement of Additional
Information (``SAI''), Shareholder Reports, and Form N-CSR and Form N-
SAR, filed twice a year. Each Fund's SAI and Shareholder Reports will
be available free upon request from such Fund, and those documents and
the Form N-CSR and Form N-SAR may be viewed on-screen or downloaded
from the Commission's Web site at www.sec.gov. Information regarding
market price and trading volume of the Shares will be continually
available on a real-time basis throughout the day on brokers' computer
screens and other electronic services. Information regarding the
previous day's closing price and trading volume information for the
Shares will be published daily in the financial section of newspapers.
Quotation and last sale information for the Shares will be available
via the CTA high-speed line. The intra-day, closing and settlement
prices of the portfolio securities are also readily available from the
national securities exchanges trading such securities (as applicable),
automated quotation systems, published or other public sources, or on-
line information services such as Bloomberg or Reuters.
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 a Fund.\23\ Trading in Shares of a Fund will
be halted if the circuit breaker parameters in NYSE Arca Equities Rule
7.12 have been reached. Trading also may be halted because of market
conditions or for reasons that, in the view of the Exchange, make
trading in the Shares inadvisable. These may include: (1) The extent to
which trading is not occurring in the securities and/or the financial
instruments comprising the Disclosed Portfolio of a Fund; or (2)
whether other unusual conditions or circumstances detrimental to the
maintenance of a fair and orderly market are present. Trading in the
Shares will be subject to NYSE Arca Equities Rule 8.600(d)(2)(D), which
sets forth circumstances under which Shares of a Fund may be halted.
---------------------------------------------------------------------------

    \23\ See NYSE Arca Equities Rule 7.12.
---------------------------------------------------------------------------

Trading Rules
    The Exchange deems the Shares to be equity securities, thus
rendering trading in the Shares subject to the Exchange's existing
rules governing the trading of equity securities. Shares will trade on
the NYSE Arca Marketplace from 4:00 a.m. to 8:00 p.m., E.T. in
accordance with NYSE Arca Equities Rule 7.34 (Opening, Core, and Late
Trading Sessions). The Exchange has appropriate rules to facilitate
transactions in the Shares during all trading sessions. As provided in
NYSE Arca Equities Rule 7.6, Commentary .03, the minimum price
variation (``MPV'') for quoting and entry of orders in equity
securities traded on the NYSE Arca Marketplace is $0.01, with the
exception of securities that are priced less than $1.00 for which the
MPV for order entry is $0.0001.
    The Shares will conform to the initial and continued listing
criteria under NYSE Arca Equities Rule 8.600. The Exchange represents
that, for initial and/or continued listing, each Fund will be in
compliance with Rule 10A-3 \24\ under the Act, as provided by NYSE Arca
Equities Rule 5.3. A minimum of 100,000 Shares for 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 will be calculated daily and that the NAV and
the Disclosed Portfolio will be made available to all market
participants at the same time.
---------------------------------------------------------------------------

    \24\ 17 CFR 240.10A-3.
---------------------------------------------------------------------------

Surveillance
    The Exchange represents that trading in the Shares will be subject
to the existing trading surveillances administered by the Exchange, as
well as cross-market surveillances administered by the Financial
Industry Regulatory Authority (``FINRA'') on behalf of the Exchange,
which are designed to detect violations of Exchange rules and
applicable federal securities laws. The Exchange represents that these
procedures are adequate to properly monitor Exchange trading of the
Shares in all trading sessions and to deter and detect violations of
Exchange rules and federal securities laws applicable to trading on the
Exchange.\25\
---------------------------------------------------------------------------

    \25\ FINRA conducts cross-market surveillances on behalf of the
Exchange pursuant to a regulatory services agreement. The Exchange
is responsible for FINRA's performance under this regulatory
services agreement.
---------------------------------------------------------------------------

    The surveillances referred to above generally focus on detecting
securities trading outside their normal patterns, which could be
indicative of manipulative or other violative activity. When such
situations are detected, surveillance analysis follows and
investigations are opened, where appropriate, to review the behavior of
all relevant parties for all relevant trading violations. The Exchange
or FINRA, on behalf of the Exchange, or both, will communicate as
needed regarding trading in the Shares and certain exchange-traded
equity securities with other markets and other entities that are
members of the Intermarket Surveillance Group (``ISG''), and the
Exchange or FINRA, on behalf of the Exchange, or both, may obtain
trading information regarding trading in the Shares and certain
exchange-traded equity securities from such markets and other
entities.\26\ In addition, the Exchange may obtain information
regarding trading in the Shares and certain exchange-traded equity
securities from markets and other entities that are members of ISG or
with which the Exchange has in place a comprehensive surveillance
sharing agreement.
---------------------------------------------------------------------------

    \26\ For a list of the current members of ISG, see
www.isgportal.org. The Exchange notes that not all components of the
Disclosed Portfolio may trade on markets that are members of ISG or
with which the Exchange has in place a comprehensive surveillance
sharing agreement.
---------------------------------------------------------------------------

    In addition, the Exchange also has a general policy prohibiting the
distribution of material, non-public information by its employees.
    All statements and representations made in this filing regarding
(a) the description of the portfolio, (b)

limitations on portfolio holdings or reference assets, or (c) the
applicability of Exchange rules and surveillance procedures shall
constitute continued listing requirements for listing the Shares of the
Funds on the Exchange.
    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, and, pursuant to its obligations under Section 19(g)(1)
of the Act, the Exchange will monitor for compliance with the continued
listing requirements. If a Fund is not in compliance with the
applicable listing requirements, the Exchange will commence delisting
procedures under NYSE Arca Equities Rule 5.5(m).
Information Bulletin
    Prior to the commencement of trading, the Exchange will inform its
Equity Trading Permit (``ETP'') Holders in an Information Bulletin
(``Bulletin'') of the special characteristics and risks associated with
trading the Shares. Specifically, the Bulletin will discuss the
following: (1) The procedures for purchases and redemptions of Shares
in Creation Units (and that Shares are not individually redeemable);
(2) NYSE Arca Equities Rule 9.2(a), which imposes a duty of due
diligence on its ETP Holders to learn the essential facts relating to
every customer prior to trading the Shares; (3) the risks involved in
trading the Shares during the Opening and Late Trading Sessions when an
updated PIV will not be calculated or publicly disseminated; (4) how
information regarding the PIV will be disseminated; (5) the requirement
that ETP Holders deliver a prospectus to investors purchasing newly
issued Shares prior to or concurrently with the confirmation of a
transaction; and (6) trading information.
    In addition, the Bulletin will reference that the Funds will be
subject to various fees and expenses described in the Registration
Statement. The Bulletin will discuss any exemptive, no-action, and
interpretive relief granted by the Commission from any rules under the
Act. The Bulletin will also disclose that the NAV for the Shares will
be calculated after 4:00 p.m., E.T. each trading day.
2. Statutory Basis
    The basis under the Act for this proposed rule change is the
requirement under Section 6(b)(5) \27\ that an exchange have rules that
are designed to prevent fraudulent and manipulative acts and practices,
to promote just and equitable principles of trade, to remove
impediments to, and perfect the mechanism of a free and open market
and, in general, to protect investors and the public interest.
---------------------------------------------------------------------------

    \27\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange believes that the proposed rule change is designed to
prevent fraudulent and manipulative acts and practices in that the
Shares will be listed and traded on the Exchange pursuant to the
initial and continued listing criteria in NYSE Arca Equities Rule
8.600. The Adviser has implemented a fire wall with respect to its
broker-dealer affiliate regarding access to information concerning the
composition and/or changes to the portfolio. The Exchange has in place
surveillance procedures that are adequate to properly monitor trading
in the Shares in all trading sessions and to deter and detect
violations of Exchange rules and applicable federal securities laws.
The Exchange or FINRA, on behalf of the Exchange, or both, will
communicate as needed regarding trading in the Shares and certain
exchange-traded equity securities with other markets and other entities
that are members of the ISG, and the Exchange or FINRA, on behalf of
the Exchange, or both, may obtain trading information regarding trading
in the Shares and certain exchange-traded equity securities from such
markets and other entities. In addition, the Exchange may obtain
information regarding trading in the Shares and certain exchange-traded
equity securities from markets and other entities that are members of
ISG or with which the Exchange has in place a comprehensive
surveillance sharing agreement. Each Fund's investments will be
consistent with such Fund's investment objective and will not be used
to enhance leverage. The non-U.S. equity securities in the portfolio of
the First Trust Horizon Managed Volatility Developed International ETF
will meet the following criteria on a continual basis: (1) Non-U.S.
equity securities each shall have a minimum market value of at least
$100 million; (2) non-U.S. equity securities 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; (3) the most heavily weighted non-U.S. equity security
shall not exceed 25% of the weight of such Fund's entire portfolio,
and, to the extent applicable, the five most heavily weighted non-U.S.
equity securities shall not exceed 60% of the weight of such Fund's
entire portfolio; and (4) each non-U.S. equity security shall be listed
and traded on an exchange that has last-sale reporting.
    The proposed rule change is designed to promote just and equitable
principles of trade and to protect investors and the public interest in
that the Exchange will obtain a representation from the issuer of the
Shares that the NAV per Share will be calculated daily and that the NAV
and the Disclosed Portfolio will be made available to all market
participants at the same time. In addition, a large amount of
information is publicly available regarding the Funds and the Shares,
thereby promoting market transparency. Moreover, the PIV will be widely
disseminated by one or more major market data vendors at least every 15
seconds during the Exchange's Core Trading Session. On each business
day, before commencement of trading in Shares in the Core Trading
Session on the Exchange, each Fund will disclose on its Web site the
Disclosed Portfolio that will form the basis for such Fund's
calculation of NAV at the end of the business day. Information
regarding market price and trading volume of the Shares will be
continually available on a real-time basis throughout the day on
brokers' computer screens and other electronic services, and quotation
and last sale information will be available via the CTA high-speed
line. The Web site for the Funds will include a form of 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 ETP Holders in a Bulletin of the
special characteristics and risks associated with trading the Shares.
Trading in Shares of a Fund will be halted if the circuit breaker
parameters in NYSE Arca Equities Rule 7.12 have been reached or because
of market conditions or for reasons that, in the view of the Exchange,
make trading in the Shares inadvisable, and trading in the Shares will
be subject to NYSE Arca Equities Rule 8.600(d)(2)(D), which sets forth
circumstances under which Shares of a Fund may be halted. In addition,
as noted above, investors will have ready access to information
regarding each Fund's holdings, the PIV, the Disclosed Portfolio, and
quotation and last sale information for the Shares.
    The proposed rule change is designed to perfect the mechanism of a
free and open market and, in general, to protect investors and the
public interest in that it will facilitate the listing and trading of
additional types of actively-managed exchange-traded products that will
enhance competition among market participants, to the benefit of
investors

and the marketplace. As noted above, the Exchange has in place
surveillance procedures relating to trading in the Shares and may
obtain information via ISG from other exchanges that are members of ISG
or with which the Exchange has entered into a comprehensive
surveillance sharing agreement. In addition, as noted above, investors
will have ready access to information regarding each Fund's holdings,
the PIV, the Disclosed Portfolio, and quotation and last sale
information for the Shares.

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

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

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

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

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

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

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-NYSEArca-2016-87 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSEArca-2016-87. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available
for inspection and copying at the principal office of 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-NYSEArca-2016-87 and should
be submitted on or before July 27, 2016.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\28\
---------------------------------------------------------------------------

    \28\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-15913 Filed 7-5-16; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register: March 20, 2007 (Volume 72, Number 53)]
[Notices]
[Page 13144-13145]
[DOCID:fr20mr07-97]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55459; File No. SR-Amex-2007-28]

Self-Regulatory Organizations; American Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to Transaction Charges for Equities, ETFs, and Nasdaq UTP
Securities

March 13, 2007.
    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 March 1, 2007, the American Stock Exchange LLC (``Amex'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been substantially prepared by the
Exchange. The Commission is publishing this notice to solicit comments
on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

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

    The Exchange proposes to revise its Equities, Exchange Traded Funds
and Trust Issued Receipts (``ETFs''), and Nasdaq UTP Fee Schedules
(collectively, the ``Fee Schedule'').
    The text of the proposed rule change is available on the Exchange's
Web site (http://www.amex.com), at the Exchange's principal office, and

at the Commission's Public Reference Room.

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

    In its filing with the Commission, 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 aspects of such
statements.

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

1. Purpose
    The Exchange recently revised its Equities, ETFs, and Nasdaq UTP
Fee Schedules.\3\ The Exchange is now proposing to make some additional
changes to each of the fee schedules. The Equity Fee Schedule will be
amended to (1) clarify that Amex transaction charges assessed for
orders routed through the NMS Linkage Plan apply only to orders routed
to Amex and not to orders routed from Amex to another market center;
and (2) provide that there will be no transaction charge for equities
executed at a per-share price below $1.00. The ETF Fee Schedule will be
amended to (1) decrease the rate charged to member firms for customer
account transactions from $0.34 to $0.30 per 100 shares; (2) eliminate
the Value Based Fee currently charged for transactions for the accounts
of non-member competing market makers; (3) clarify that Amex
transaction charges assessed for orders routed through the NMS Linkage
Plan apply only to orders routed to Amex and not to orders routed from
Amex to another market center; and (4) provide that there will be no
transaction charge for ETFs executed at a per-share price below $1.00.
The Nasdaq UTP Fee Schedule will be amended to provide that there will
be no transaction charge for Nasdaq UTP securities executed at a per-
share price below $1.00.
---------------------------------------------------------------------------

    \3\ See SR-Amex-2007-23 filed on February 22, 2007.
---------------------------------------------------------------------------

2. Statutory Basis
    The proposed fee change is consistent with Section 6(b)(4) of the
Act \4\ regarding the equitable allocation of reasonable dues, fees,
and other charges among exchange members and other persons using
exchange facilities.
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

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

    The proposed rule change does not impose any burden on competition
that is not necessary or appropriate in furtherance of the purposes of
the Act.

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

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

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

    The foregoing proposed rule change has become effective pursuant to
Section 19(b)(3)(A)(ii) of the Act \5\ and Rule 19b-4(f)(2) thereunder
\6\ because it establishes or changes a due, fee, or other charge
imposed by the Exchange. At any time within 60 days of the filing of
the proposed rule change, the Commission may summarily abrogate such
rule change if it appears to the Commission that such action is
necessary or appropriate in the public interest, for the protection of
investors, or otherwise in furtherance of the purposes of the Act.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \6\ 17 CFR 19b-4(f)(2).
---------------------------------------------------------------------------

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 e-mail to<EMAIL_ADDRESS>Please include

File No. SR-Amex-2007-28 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, Station Place, 100 F
Street, NE., Washington, DC 20549-1090.
    All submissions should refer to File Number SR-Amex-2007-28. This
file number should be included on the subject line if e-mail 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 inspection
and copying in the Commission's Public Reference

Room. Copies of the filing also will be available for inspection and
copying at the principal office of Amex. 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-Amex-2007-28 and should be submitted on
or before April 10, 2007.

    For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\7\
---------------------------------------------------------------------------

    \7\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-4977 Filed 3-19-07; 8:45 am]

BILLING CODE 8010-01-P


UNITED STATES ENVIRONMENTAL PROTECTION AGENCY WASHINGTON, D. C. 20460 OFFICE OF PREVENTION, PESTICIDES AND TOXIC SUBSTANCES Chemical: Coppers ( Copper sulfate, copper group II, copper salts, copper and oxides) PC Code: 024401, 008101,023401, 022901, 022702, 022703, 008001, 023501, 023503, 023104, 024407, 024403, 024409, 023306 DP Barcode: 330382 MEMORANDUM DATE: June 28, 2006 SUBJECT: Analysis of Water Chemistry to Develop Label Language for Re Registration of Copper sulfate ( Case# 0636), Group II copper compounds ( Case # 0649), and Copper salts ( Case# 4029) for use on crops and as direct water applications ( Docket ID EPA HQ OPP 2005 0558)

FROM: Paige Doelling Brown, Ph. D., Fisheries Biologist James Hetrick, Ph. D., Senior Chemist Nancy Andrews, Ph. D, Branch Chief Environmental Risk Branch 1 Environmental Fate and Effects Division ( 7507C)

TO: Rosanna Louie, Chemical Review Manger Reregistration Branch 3 ( RB3) Special Review and Re Registration Division ( 7505C)

To assist SRRD and RD in developing label language for copper, EFED performed an analysis of the effect of varying the three water chemistry parameters ( DOC, pH, and alkalinity) identified as most influential in controlling bioavailability of the cupric ( Cu2+) ion. The analysis was based on median water chemistry parameters from the USGS water chemistry data set used in the risk assessment. Each of the three parameters was varied ( separately) in increments from the minimum to the maximum value in the data set. All other parameters were held constant. This analysis showed that the concentration of the cupric ion, at least as predicted by the Biotic Ligand Model ( BLM), is most heavily influenced by DOC and pH. At median water chemistry conditions, varying the alkalinity through the range of conditions in the dataset had no effect on the risk quotient for trout. Additional analysis consisted of calculating risk quotients for Daphnia magna and fathead minnow ( Pimephales promelas) at various concentrations of copper and varying the concentrations of DOC and pH while holding alkalinity and other water parameters constant at the median values. Contour graphs showing the results of the analysis are included in this memo.

Based on the analysis, the greatest risk from " introduced" copper is found when the pH is approximately 6.5 or less and the DOC is approximately 3.0 mg/ L or less. Although alkalinity did not appear to play as important a role in controlling cupric ion concentrations as the other two parameters, it has been recognized as important, and existing water quality standards incorporate this fact by including a hardness correction factor. EFED recommends including a 50 mg/ L alkalinity guideline in the label language, or at least qualitatively warning against use in " soft" waters. 1 ug/ L pH 5 6 7 8 DOC ( mg/ L)

5 10 15 20 25 0.1 0.2 0.3 0.4 0.5 0.6 0.1 ug/ L pH 5 6 7 8 DOC ( mg/ L)

5 10 15 20 25 1e 2 2e 2 3e 2 4e 2 5e 2 6e 2 5 ug/ L pH 5 6 7 8 DOC ( mg/ L)

5 10 15 20 25 1 2 3 12.5 ug/ L pH 5 6 7 8 DOC ( mg/ L)

5 10 15 20 25 1 2 3 4 5 6 7 8 25 ug/ L pH 5 6 7 8 DOC ( mg/ L)

5 10 15 20 25 2 4 6 8 10 12 14 16 50 ug/ L pH 5 6 7 8 DOC ( mg/ L)

5 10 15 20 25 5 10 15 20 25 30 35 Daphnia RQ Contour Plots for Dissolved Copper ( Cu 2+) 1 ug/ L pH 5 6 7 8 DOC ( mg/ L)

5 10 15 20 25 0.1 0.2 0.3 0.4 0.5 0.6 0.1 ug/ L pH 5 6 7 8 DOC ( mg/ L)

5 10 15 20 25 1e 2 2e 2 3e 2 4e 2 5e 2 6e 2 5 ug/ L pH 5 6 7 8 DOC ( mg/ L)

5 10 15 20 25 1 2 3 12.5 ug/ L pH 5 6 7 8 DOC ( mg/ L)

5 10 15 20 25 1 2 3 4 5 6 7 8 25 ug/ L pH 5 6 7 8 DOC ( mg/ L)

5 10 15 20 25 2 4 6 8 10 12 14 16 50 ug/ L pH 5 6 7 8 DOC ( mg/ L)

5 10 15 20 25 5 10 15 20 25 30 35 Fathead Minnow RQ Contour Plots for Dissolved Copper ( Cu 2+)


[Federal Register: July 9, 2010 (Volume 75, Number 131)]
[Notices]
[Page 39617-39618]
[DOCID:fr09jy10-121]

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DEPARTMENT OF TRANSPORTATION

Federal Railroad Administration

Petition for Waiver of Compliance

    In accordance with part 211 of title 49 Code of Federal Regulations
(CFR), notice is hereby given that the Federal Railroad Administration
(FRA) has received a request for a waiver of compliance from certain
requirements of its safety standards. The individual petition is
described below, including the party seeking relief, the regulatory
provisions involved, the nature of the relief being requested, and the
petitioner's arguments in favor of relief.

Southeastern Pennsylvania Transportation Authority

[Waiver Petition Docket Number FRA-2010-0113]

    The Southeastern Pennsylvania Transportation Authority (SEPTA)
seeks a waiver of compliance with the Locomotive Safety Standards, 49
CFR 229.129(b)(2), which requires that the sound level of horns of
locomotives manufactured before September 18, 2006, be tested before
June 24, 2010. SEPTA operates approximately 332 pieces of equipment
(locomotives) with train horns that were manufactured before the
September 18, 2006, date. SEPTA states in their request that lack of a
site meeting the requirements of the horn test regulation has caused
SEPTA to be unable to perform any of the required horn tests. SEPTA has
recently realized that removal of trees at their Frazier Facility will
allow the horn testing to be performed there. SEPTA requests that the
requirement to complete testing of horns on locomotives built prior to
September 18, 2006, be extended 6 months, to December 24, 2010.
    Interested parties are invited to participate in these proceedings
by submitting written views, data, or comments. FRA does not anticipate
scheduling a public hearing in connection with these proceedings since
the facts do not appear to warrant a hearing. If any interested party
desires an opportunity for oral comment, they should notify FRA, in
writing, before the end of the comment period and specify the basis for
their request.
    All communications concerning these proceedings should identify the
appropriate docket number (e.g., Waiver Petition Docket Number FRA-
2010-0113) and may be submitted by any of the following methods:
     Web site: http://www.regulations.gov. Follow the online
instructions for submitting comments.

     Fax:<PHONE_NUMBER>.
     Mail: Docket Operations Facility, U.S. Department of
Transportation, 1200 New Jersey Avenue, SE., W12-140, Washington, DC
20590.
     Hand Delivery: 1200 New Jersey Avenue, SE., Room W12-140,
Washington, DC 20590, between 9 a.m. and 5 p.m., Monday through Friday,
except Federal holidays.
    Communications received within 30 days of the date of this notice
will be considered by FRA. FRA reserves the right to grant relief in
response to this request prior to the expiration of the comment period.
Any relief provided will be contingent upon FRA's consideration of any
relevant comments submitted to the docket before the close of the
comment period. Comments received after that date will be considered as
far as practicable. All written communications concerning these
proceedings are available for examination during regular business hours
(9 a.m.-5 p.m.) at the above facility. All documents in the public
docket are also available for inspection and copying on the Internet at
the docket facility's Web site at http://www.regulations.gov.
    Anyone is able to search the electronic form of any written
communications and comments received into any of our dockets by the
name of the individual submitting the document (or signing the
document, if submitted on behalf of an association, business, labor
union, etc.). You may review DOT's complete Privacy Act Statement in
the Federal Register published on April 11, 2000 (65 FR 19477) or at
http://www.dot.gov/privacy.html.

    Issued in Washington, DC, on July 2, 2010.
Robert C. Lauby,
Deputy Associate Administrator for Regulatory and Legislative
Operations.
[FR Doc. 2010-16727 Filed 7-8-10; 8:45 am]
BILLING CODE 4910-06-P