Securities, the Reference Asset must be widely disseminated to the
public at least once per business day; and (ii) in the case of Futures-
Linked Securities and Multifactor Index-Linked Securities, the
Reference Asset must be, and, if the security is periodically
redeemable, the Intraday Indicative Value of the security also must be,
widely disseminated at least every 15 seconds during the Regular Market
Session. In addition, the Additional Linked Securities will be subject
to the trading halts requirements applicable to all Linked Securities,
which provide that BATS may halt trading during the day on which an
interruption to the dissemination of the Intraday Indicative Value (if
required to be disseminated) or the index or Reference Asset value
occurs, and that BATS will halt trading no later than the beginning of
trading following the trading day when the interruption began if such
interruption persists at that time.\41\ The Commission believes that
the proposed rules are reasonably designed to promote the timely and
fair disclosure of useful information that may be necessary to price
the Additional Linked Securities appropriately, and to prevent trading
when a reasonable degree of transparency cannot be assured.
---------------------------------------------------------------------------

    \40\ See proposed Rule 14.11(d)(2)(G)(ii) (formerly Rule
14.11(d)(2)(i)(ii)), which provides that, subject to certain
exceptions, the current value of the index or Reference Asset of a
Linked Securities must be widely disseminated at least every 15
seconds during the Exchange's regular market session.
    \41\ See proposed Rule 14.11(d)(2)(H) (formerly Rule
14.11(d)(2)(J)).
---------------------------------------------------------------------------

c. Surveillance
    The Additional Linked Securities will be subject to the
surveillance procedure requirements applicable to Linked
Securities.\42\ In addition, the Exchange has represented that trading
of the Additional Linked Securities on BATS will be subject to the
Exchange's surveillance procedures for derivative products, and that
the Exchange's surveillance procedures applicable to derivative
products are adequate to address any concerns about the trading of the
Linked Securities on BATS.\43\ Further, the proposed listing criteria
for Futures Linked Securities require, subject to certain limited
exceptions, that the pricing information for components be derived from
an ISG member market or its affiliate, or a market with which BATS has
a comprehensive surveillance sharing agreement.
---------------------------------------------------------------------------

    \42\ See proposed Rule 14.11(d)(2)(K) (formerly Rule
14.11(d)(2)(I)), which provides that BATS will enter into adequate
comprehensive surveillance sharing agreements for non-U.S.
securities, as applicable.
    \43\ See Notice, supra note 4, 78 FR at 41478.
---------------------------------------------------------------------------

d. Additional Provisions
    The Additional Linked Securities will be subject to the requirement
that issuers comply with Rule 10A-3 under the Act.\44\ In addition, the
Additional Linked Securities will be subject to the index calculation
and ``firewall'' requirements applicable to all Linked Securities.\45\
The Commission believes

that the ``firewall'' restrictions applicable to Linked Securities are
designed to prevent the use and dissemination of material, non-public
information regarding an underlying index and prevent conflicts of
interest with respect to personnel of a broker-dealer maintaining an
index underlying such securities. BATS has also represented that it has
a general policy prohibiting the distribution of material, non-public
information by its employees.\46\ The Commission believes that these
requirements, taken together, should help to minimize the potential for
manipulation and allow for the maintenance of a fair and orderly market
in the Additional Linked Securities.
---------------------------------------------------------------------------

    \44\ 17 CFR 240.10A-3. See Rule 14.11(d)(2)(F).
    \45\ See proposed Rule 14.11(d)(2)(G)(i) (formerly Rule
14.11(d)(2)(I)(i)), which requires that if an index is maintained by
a broker-dealer, the broker-dealer must erect a ``firewall'' around
the personnel who have access to information concerning changes and
adjustments to the index and that the index must be calculated by a
third party who is not a broker-dealer.
    \46\ See Notice, supra note 4, 78 FR at 41478.
---------------------------------------------------------------------------

    Proposed Interpretations and Policies .01(b) to Rule 14.11(d)(2)(K)
would impose additional reporting requirements, trading restrictions
and books and records obligations on members acting as registered
market makers in Linked Securities. The Commission believes that such
restrictions, reporting and record-keeping requirements are reasonably
designed to promote a fair and orderly market for Linked Securities and
will assist the Exchange in identifying situations potentially
susceptible to manipulation.
    In addition, the Exchange has represented that prior to the
commencement of trading in a series of Additional Linked Securities,
the Exchange will inform its members in an Information Circular of the
special characteristics and risks associated with trading the
Additional Linked Securities.\47\ The Commission believes that the
Exchange's proposal should ensure that its members have information
that will allow them to be adequately apprised of the terms,
characteristics, and risks of trading the Additional Linked Securities.
---------------------------------------------------------------------------

    \47\ See id. at 41477.
---------------------------------------------------------------------------

    As discussed above, the Exchange proposes to make certain technical
revisions so that the Additional Linked Securities are included in the
provisions of Rule 14.11(d) that apply to all Linked Securities. The
Commission finds that the technical revisions to BATS Rule 14.11(d) are
reasonable and promote transparency and consistent application of
certain rules imposed with respect to types of Linked Securities.
    The Commission notes that the proposed generic listing standards
for Fixed Income Index-Linked Securities, Futures-Linked Securities,
and Multifactor Index-Linked Securities are substantively identical to
those previously approved by the Commission for the listing and trading
of Fixed Income Index-Linked Securities, Futures Linked Securities and
Multifactor Index-Linked Securities on Nasdaq.\48\ As such, the
Commission believes that the proposed generic listing standards present
no unique or novel regulatory issues and, for the reasons discussed
above, are reasonably designed to protect investors and the public
interest.
---------------------------------------------------------------------------

    \48\ See Nasdaq Rule 5710(k)(iii), (k)(iv) and Commentary .01.
---------------------------------------------------------------------------

3. Index-Linked Exchangeable Notes
    As discussed above, the Commission has previously approved the
adoption of generic listing standards for various classes of new
derivative securities products to be listed and traded pursuant to Rule
19b-4(e).\49\ In addition, the Commission has previously approved the
adoption of generic initial and continued listing standards for Index-
Linked Exchangeable Notes on Nasdaq.\50\ Consistent with its previous
orders, the Commission believes that the generic listing standards
proposed by the Exchange for Index-Linked Exchangeable Notes should
fulfill the intended objective of Rule 19b-4(e) by allowing those
Index-Linked Exchangeable Notes that satisfy the generic listing
standards to commence trading without public comment and Commission
approval. The Exchange's ability to rely on Rule 19b-4(e) to list and
trade Index-Linked Exchangeable Notes that meet the applicable
requirements and minimum standards should reduce the time frame for
bringing these securities to market and thereby reduce the burdens on
issuers and other market participants, while also promoting competition
and making such securities available to investors more quickly. In
addition, the Commission believes the Exchange's proposal to list and
trade Index-Linked Exchangeable Notes will provide an additional avenue
for investors to achieve desired investment objectives through the
purchase of index-linked exchangeable debt securities, and will benefit
investors by increasing competition among markets that trade index-
linked exchangeable debt.
---------------------------------------------------------------------------

    \49\ See supra note 34.
    \50\ See supra note 35 (approving generic listing standards for
Index-Linked Exchangeable Notes).
---------------------------------------------------------------------------

a. Listing and Trading Rules
    The Commission finds that the Exchange's proposal contains adequate
rules and procedures to govern the listing and trading of Index-Linked
Exchangeable Notes pursuant to Rule 19b-4(e). Index-Linked Exchangeable
Notes listed under the standards will be subject to the full panoply of
BATS rules and procedures that currently govern the trading of equity
securities on the Exchange including, among others, rules and
procedures governing trading halts, surveillance procedures,
disclosures to members, customer suitability requirements, and market
maker obligations.
    The Commission is satisfied with the Exchange's development of
specific listing and delisting criteria for Index-Linked Exchangeable
Notes. As described more fully above, the proposed listing criteria
include minimum tangible net worth and earnings requirements for
issuers. These criteria are, in part, intended to ensure that the
issuer has enough assets to meet its obligations under the terms of the
note and should help to reduce systematic risk. The proposed listing
criteria also include minimum holder and distribution requirements,
which should serve to establish a minimum level of liquidity for each
series of Index-Linked Exchangeable Notes to allow for maintenance of
fair and orderly markets.
    The proposed initial listing criteria also contain minimum
requirements for the indices the Index-Linked Exchangeable Notes can be
linked to, and the underlying components of those indices. The
Exchange's proposed requirements for indices underlying Index-Linked
Exchangeable Notes are linked to other approved criteria for index-
related products. Accordingly, any underlying index would have to
follow the criteria adopted by the Exchange and already in the
Exchange's rules for that index, including the criteria for component
stocks. These requirements will generally contain, among other things,
minimum market capitalization, trading volume, and concentration
requirements that are designed to reduce manipulation concerns and
ensure a minimum level of liquidity for component securities.
Accordingly, the Commission believes that these criteria should serve
to ensure that the underlying stocks of underlying indices of Index-
Linked Exchangeable Notes are well capitalized and actively traded, and
should thus significantly minimize the potential for manipulation.
    The Commission believes that the proposed continued listing
requirements for Index-Linked Exchangeable Notes are reasonably
designed to protect investors and the public interest. As further
discussed above, under the proposed continued listing standards,
beginning 12 months after the initial issuance of a series of

Index-Linked Exchangeable Notes, BATS would consider suspension of
trading in or removal of listing of such series if: (i) The series has
fewer than 50,000 notes issued and outstanding; (ii) the outstanding
market value of the series held is less than $1,000,000; or (iii) if
circumstances exist which make further dealings in the securities on
the Exchange inadvisable. The Commission believes that the continued
listing standards will help ensure a minimum level of liquidity exists
for such securities to allow for the maintenance of fair and orderly
markets. In addition, the Exchange will have flexibility to delist a
series if circumstances warrant such action.
b. Dissemination of Information
    The proposed rule requires that an estimate of the value of a note
for each series of Index-Linked Exchangeable Notes will be calculated
and widely disseminated at least every 15 seconds, and that the value
of any underlying index will also be publicly disseminated to
investors, on a real time basis, every 15 seconds.\51\ In addition, the
Exchange has represented that it may halt trading during the day on
which an interruption to the dissemination of either of these values
occurs, and that BATS will halt trading no later than the beginning of
trading following the trading day when the interruption began if such
interruption persists at that time.\52\ The Commission believes that
the proposed rules are reasonably designed to promote the timely and
fair disclosure of useful information that may be necessary to price
the Index-Linked Exchangeable Notes appropriately, and to prevent
trading when a reasonable degree of transparency cannot be assured.
---------------------------------------------------------------------------

    \51\ Proposed rules 14.11(e)(1)(F) and (G).
    \52\ See Notice, supra note 4, 78 FR at 41478.
---------------------------------------------------------------------------

c. Surveillance
    The Exchange has represented that trading of the Index-Linked
Exchangeable Notes on BATS will be subject to the Exchange's
surveillance procedures for derivative products, and that the
Exchange's surveillance procedures applicable to derivative products
are adequate to address any concerns about the trading of the Index-
Linked Exchangeable Notes on BATS.\53\
---------------------------------------------------------------------------

    \53\ See id.
---------------------------------------------------------------------------

d. Additional Provisions
    The Commission notes that the proposed listing criteria requires
that if the underlying index is maintained by a broker-dealer, the
index must be calculated by a third party who is not a broker-dealer,
and the broker-dealer is required to erect firewalls around its
personnel who have access to information concerning changes in and
adjustments to the index.\54\ BATS also has represented that it has a
general policy prohibiting the distribution of material, non-public
information by its employees.\55\ The Commission believes that such
firewalls and information barrier policies and procedures are adequate
to prevent the misuse of material, non-public information regarding
changes to the underlying index, and to address the unauthorized
transfer and misuse of material, non-public information.
---------------------------------------------------------------------------

    \54\ See proposed Rule 14.11(e)(1) (which requires that an
Issuer Index comply with the requirements of one of the following:
(A) The procedures and criteria set forth in BATS Options Rules
29.6(b) and (c), or (B) the criteria set forth in Rules
14.11(e)(12)(B)(iii) and (iv), the index concentration limits set
forth in BATS Options Rule 29.6, and BATS Options Rule 29.6(b)(12)
insofar as it relates to BATS Options Rule 29.6(b)(6).
    \55\ See Notice, supra note 4, 78 FR at 41478.
---------------------------------------------------------------------------

    In addition, the Exchange has represented that prior to the
commencement of trading in a series of Index-Linked Exchangeable Notes,
the Exchange will inform its members in an Information Circular of the
special characteristics and risks associated with trading the Index-
Linked Exchangeable Notes.\56\ The Commission believes that the
Exchange's proposal should ensure that investors have information that
will allow them to be adequately apprised of the terms,
characteristics, and risks of trading the Index-Linked Exchangeable
Notes.
---------------------------------------------------------------------------

    \56\ See id. at 41477.
---------------------------------------------------------------------------

    The Commission notes that the proposed generic listing standards
for Index-Linked Exchangeable Notes are substantively identical to
those previously approved by the Commission for the listing and trading
of Index-Linked Exchangeable Notes on Nasdaq.\57\ As such, the
Commission believes that the proposed generic listing standards present
no unique or novel regulatory issues and, for the reasons discussed
above, are reasonably designed to protect investors and the public
interest.
---------------------------------------------------------------------------

    \57\ See Nasdaq Rule 5711(a).
---------------------------------------------------------------------------

4. Currency Trust Shares
    As discussed above, the Commission has previously approved the
adoption of generic listing standards for various classes of new
derivative securities products to be listed and traded pursuant to Rule
19b-4(e).\58\ In addition, the Commission has previously approved
generic listing standards for the listing and trading of Currency Trust
Shares pursuant to Rule 19b-4(e) on Nasdaq.\59\ The Commission believes
that proposed generic listing standards for Currency Trust Shares
should fulfill the intended objective of Rule 19b-4(e) and allow
securities that satisfy the proposed generic listing standards to
commence trading without public comment and Commission approval.\60\
The Exchange's ability to rely on Rule 19b-4(e) to list and trade
Currency Trust Shares that meet the applicable requirements and minimum
standards should reduce the time frame for bringing these securities to
market and thereby reduce the burdens on issuers and other market
participants, while also promoting competition and making such
securities available to investors more quickly. In addition, the
Commission believes the Exchange's proposal to list and trade Currency
Trust Shares will provide an additional avenue for investors to achieve
desired investment objectives through the purchase of Currency Trust
Shares, and will benefit investors by increasing competition among
markets that trade Currency Trust Shares.
---------------------------------------------------------------------------

    \58\ See supra note 34.
    \59\ See supra note 35 (approving generic listing standards for
Currency Trust Shares).
    \60\ The Commission notes that the failure of a particular
product or index to comply with the proposed generic listing
standards under Rule 19b-4(e), however, would not preclude the
Exchange from submitting a separate filing pursuant to Section
19(b)(2) of the Act, requesting Commission approval to list and
trade a particular series of Currency Trust Shares. See supra note
33.
---------------------------------------------------------------------------

a. Listing and Trading Rules
    The Commission finds that the proposal contains adequate rules and
procedures to govern the listing and trading of Currency Trust Shares
pursuant to Rule 19b-4(e) on the Exchange. The Currency Trust Shares
listed and traded under the proposed listing standards will be subject
to the full panoply of BATS rules and procedures that govern the
trading equity securities on the Exchange including, among others,
rules and procedures governing trading halts, surveillance procedures,
disclosures to members, customer suitability requirements, and market
maker obligations.
    For the Exchange to approve an issue of Currency Trust Shares for
listing under the generic listing standards, a minimum of 100,000
Currency Trust Shares must be outstanding at the commencement of
trading. This requirement should serve to ensure a minimum level of
liquidity for each series of Currency Trust Shares, to allow for the
maintenance of fair and orderly markets and reduce the potential for
manipulation.

    As further discussed above, beginning 12 months after the initial
issuance of a series of Currency Trust Shares, the Exchange may
consider suspending trading in, or removing from listing, such series
if: (i) The trust has more than 60 days remaining until termination and
there are fewer than 50 record and/or beneficial holders of Currency
Trust Shares for 30 or more consecutive trading days; (ii) the trust
has fewer than 50,000 Currency Trust Shares issued and outstanding;
(iii) the market value of all Currency Trust Shares issued and
outstanding is less than $1,000,000; (iv) the Intraday Indicative Value
of the Currency Trust Shares or the value of the underlying currency is
no longer calculated or being disseminated on at least a 15-second
delayed basis; or (iv) if circumstances exist which make further
dealings in the securities on BATS inadvisable. The Commission believes
that the proposed continued listing standards are adequate to ensure
transparency of key values and information regarding the Currency Trust
Shares, and will help ensure a minimum level of liquidity exists for
such securities to allow for the maintenance of fair and orderly
markets. In addition, the Exchange will have flexibility to delist a
series if circumstances warrant such action.
b. Dissemination of Information
    For Currency Trust Shares to be approved for listing on the
Exchange, or for trading pursuant to unlisted trading privileges, under
the generic listing standards, each issue must satisfy the following
requirements: (i) The value of the underlying non-U.S. currency,
currencies, or currency index, as the case may be, must be disseminated
by one or more major market data vendors on at least a 15-second
delayed basis; and (ii) the Intraday Indicative Value must be
calculated and widely disseminated by BATS or one or more major market
data vendors on at least a 15-second basis during the Regular Market
Session. In addition, if either the Intraday Indicative Value or the
value of the underlying non-U.S. currency, currencies, or currency
index, as the case may be, is not being disseminated as required, the
Exchange may halt trading during the day on which such interruption
first occurs, and if such interruption persists past the trading day in
which it occurred, the Exchange will halt trading no later than the
beginning of the trading day following the interruption. Further, if
the Exchange becomes aware that the net asset value applicable to a
series of Currency Trust Shares is not being disseminated to all market
participants at the same time, it will halt trading in such series
until such time as the net asset value is available to all market
participants. The proposed generic listing standards seek to ensure a
minimum level of transparency with respect key values of the underlying
currency assets, and establish events that would trigger a trading halt
in Currency Trust Shares when the availability of such key information
related to Currency Trust Shares becomes impaired. The Commission
believes that the proposed rules are reasonably designed to promote the
timely and fair disclosure of useful information that may be necessary
to price the Currency Trust Shares appropriately, and to prevent
trading when a reasonable degree of transparency cannot be assured.
c. Surveillance
    For an issue of Currency Trust Shares to be approved for listing or
trading pursuant to unlisted trading provision under the generic
listing standards, BATS must implement written surveillance procedures
applicable to Currency Trust Shares. The Exchange has represented that
trading of Currency Trust Shares on BATS will be subject to the
Exchange's surveillance procedures for derivative products, and that
the Exchange's surveillance procedures applicable to derivative
products are adequate to address any concerns about the trading of the
Currency Trust Shares on BATS.\61\
---------------------------------------------------------------------------

    \61\ See Notice, supra note 4, 78 FR at 41478.
---------------------------------------------------------------------------

d. Other Provisions
    BATS has represented that it has a general policy prohibiting the
distribution of material, non-public information by its employees. In
addition, Currency Trust Shares approved for listing and trading, or
trading pursuant to unlisted trading privileges, pursuant to the
generic listing standards will be subject to certain firewall
requirements. These requirements provide that, if the value of a
Currency Trust Share is based in whole or in part on an index that is
maintained by a broker-dealer, the broker-dealer shall erect a
``firewall'' around the personnel responsible for the maintenance of
the underlying index or who have access to information concerning
changes and adjustments to the index, and the index shall be calculated
by a third party who is not a broker-dealer. Furthermore, any advisory
committee, supervisory board, or similar entity that advises an index
licensor or administrator or that makes decisions regarding the index
or portfolio composition, methodology, and related matters must
implement and maintain, or be subject to, procedures designed to
prevent the use and dissemination of material, non-public information
regarding the applicable index or portfolio. The Commission believes
that the proposed ``firewall'' restrictions applicable to Currency
Trust Shares are designed to prevent the use and dissemination of
material, non-public information regarding an underlying index and
prevent conflicts of interest with respect to personnel of a broker-
dealer maintaining an index underlying such securities. BATS has also
represented that it has a general policy prohibiting the distribution
of material, non-public information by its employees.\62\
---------------------------------------------------------------------------

    \62\ See id.
---------------------------------------------------------------------------

    The proposed rules contain additional reporting requirements,
trading restrictions and books and records obligations on members
acting as registered market makers in Currency Trust Shares. The
Commission believes that such restrictions, reporting and record-
keeping requirements are reasonably designed to promote a fair and
orderly market for Currency Trust Shares and will assist the Exchange
in identifying situations potentially susceptible to manipulation.
    The proposed rules prescribe prospectus delivery requirements for
purchasers of each newly issued series of Currency Trust Shares.
Further, the Exchange has represented that prior to the commencement of
trading in a series of Currency Trust Shares, the Exchange will inform
its members in an Information Circular of the special characteristics
and risks associated with trading the Additional Linked Securities.\63\
The Commission believes that the Exchange's proposal should ensure that
investors have information that will allow them to be adequately
apprised of the terms, characteristics, and risks of trading the
Currency Trust Shares.
---------------------------------------------------------------------------

    \63\ See id.
---------------------------------------------------------------------------

    The Commission notes that the proposed generic listing standards
for Currency Trust Shares are substantively identical to those
previously approved by the Commission for the listing and trading of
Currency Trust Shares on Nasdaq.\64\ As such, the Commission believes
that the proposed generic listing standards present no unique or novel
regulatory issues and, for the reasons discussed above, are reasonably

designed to protect investors and the public interest.
---------------------------------------------------------------------------

    \64\ See Nasdaq Rule 5711(e).
---------------------------------------------------------------------------

B. Non-Generic Listing Standards

    The Exchange is proposing to adopt non-generic listing standards
for Trust Certificates, Equity Gold Shares, Commodity-Based Trust
Shares, Commodity Index Trust Shares, Commodity Futures Trust Shares,
Partnership Units, Trust Units, Managed Trust Securities, and Currency
Warrants. BATS would be required to file a separate proposed rule
change pursuant to Section 19(b) of the Act for each series of such
securities BATS seeks to list and/or trade on the Exchange.
1. Trust Certificates
    The Commission finds that the Exchange's proposed rules and
procedures for the listing and trading of Trust Certificates are
consistent with the Act. The Commission believes the Exchange's
proposal to list and trade Trust Certificates will benefit investors by
increasing competition among markets that trade Trust Certificates. The
Commission notes that it has previously approved the adoption of
listing standards for Trust Certificates on Nasdaq.\65\
---------------------------------------------------------------------------

    \65\ See supra note 35 (approving listing standards for Trust
Certificates).
---------------------------------------------------------------------------

a. Listing and Trading Rules
    The Commission finds that the Exchange's proposal contains adequate
rules and procedures to govern the listing and trading of Trust
Certificates. Prior to listing and/or trading on the Exchange, BATS
must file a separate proposed rule change pursuant to Section 19(b) of
the Act for each series of Trust Certificates. All such Trust
Certificates listed and/or traded under proposed Rule 14.11(e)(3) will
be subject to the full panoply of BATS rules and procedures that
currently govern the trading of equity securities on the Exchange
including, among others, rules and procedures governing trading halts,
surveillance procedures, disclosures to members, customer suitability
requirements, and market maker obligations.
    The Commission believes that the proposed criteria under proposed
Rule 14.11(e)(3) and in particular, the continued listing requirements
under proposed Interpretation and Policy .01 thereto, are reasonably
designed to protect investors and the public interest. Specifically,
the Exchange must commence delisting or removal proceedings with
respect to an issue of Trust Certificates if: (i) The aggregate market
value or the principal amount publicly held is less than $400,000; (ii)
the value of the index or composite value of the indexes is no longer
calculated or widely disseminated as required; or (iii) such other
event shall occur or condition exists which, in the opinion of the
Exchange, makes further dealings in Trust Certificates on the Exchange
inadvisable. The Commission believes that the proposed continued
listing standards are adequate to ensure transparency of key values and
information regarding the Trust Certificates, and will help ensure a
minimum level of liquidity exists for such securities to allow for the
maintenance of fair and orderly markets. In addition, the Exchange will
have flexibility to delist a series if circumstances warrant such
action.
b. Dissemination of Information
    The Exchange has represented that it may halt trading during the
day on which an interruption to the dissemination of the Intraday
Indicative Value or the value of the underlying index or assets occurs,
and that BATS will halt trading no later than the beginning of trading
following the trading day when the interruption began if such
interruption persists at that time.\66\ In addition, the Exchange has
represented that if it becomes aware that the net asset value
applicable to a series of Trust Certificates is not being disseminated
to all market participants at the same time, it will halt trading in
such series until such time as the net asset value is available to all
market participants.\67\ The Commission believes that the proposal is
reasonably designed to promote the timely and fair disclosure of useful
information that may be necessary to price the Trust Certificates
appropriately, and to prevent trading when a reasonable degree of
transparency cannot be assured.
---------------------------------------------------------------------------

    \66\ See Notice, supra note 4, 78 FR at 41478.
    \67\ See id.
---------------------------------------------------------------------------

c. Surveillance
    Pursuant to the proposed rules, BATS will implement written
surveillance procedures applicable to Trust Certificates. The Exchange
has represented that trading of Trust Certificates on BATS will be
subject to the Exchange's surveillance procedures for derivative
products, and that the Exchange's surveillance procedures applicable to
derivative products are adequate to address any concerns about the
trading of the Trust Certificates on BATS.\68\
---------------------------------------------------------------------------

    \68\ See id.
---------------------------------------------------------------------------

d. Other Provisions
    BATS has represented that it has a general policy prohibiting the
distribution of material, non-public information by its employees.\69\
In addition, the Exchange has represented that prior to the
commencement of trading in a series of Trust Certificates, the Exchange
will inform its members in an Information Circular of the special
characteristics and risks associated with trading the Trust
Certificates.\70\
---------------------------------------------------------------------------

    \69\ See id.
    \70\ See id. at 41477.
---------------------------------------------------------------------------

    The Commission notes that the Exchange's proposed listing standards
for Trust Certificates are substantively identical to the listing
standards for Trust Certificates on Nasdaq.\71\ As such, the Commission
believes that the proposed listing standards present no unique or novel
regulatory issues and, for the reasons discussed above, are reasonably
designed to protect investors and the public interest.
---------------------------------------------------------------------------

    \71\ See Nasdaq Rule 5711(c).
---------------------------------------------------------------------------

2. Commodity-Based Trust Shares, Equity Gold Shares, Commodity Index
Trust Shares, Commodity Futures Trust Shares, Partnership Units, and
Trust Units
    The Commission finds that the Exchange's proposed rules and
procedures for the listing and trading of Commodity-Based Trust Shares,
Equity Gold Shares, Commodity Index Trust Shares, Commodity Futures
Trust Shares, Partnership Units, and Trust Units are consistent with
the Act. The Commission believes the Exchange's proposal to list and
trade Commodity-Based Trust Shares, Equity Gold Shares, Commodity Index
Trust Shares, Commodity Futures Trust Shares, Partnership Units, and
Trust Units will benefit investors by increasing competition among
markets that trade such products. The Commission notes that it has
previously approved the adoption of listing standards for Commodity-
Based Trust Shares, Equity Gold Shares, Commodity Index Trust Shares,
Commodity Futures Trust Shares, Partnership Units, and Trust Units on
Nasdaq.\72\
---------------------------------------------------------------------------

    \72\ See supra note 35.
---------------------------------------------------------------------------

a. Listing and Trading Rules
    The Commission finds that the Exchange's proposal contains adequate
rules and procedures to govern the listing and trading of Commodity-
Based Trust Shares, Equity Gold Shares,\73\

Commodity Index Trust Shares, Commodity Futures Trust Shares,
Partnership Units, and Trust Units on the Exchange. Prior to listing
and/or trading on the Exchange, BATS must file a separate proposed rule
change pursuant to Section 19(b) of the Act for each series of
Commodity-Based Trust Shares, Equity Gold Shares, Commodity Index Trust
Shares, Commodity Futures Trust Shares, Partnership Units, and Trust
Units. All such securities listed and/or traded will be subject to the
full panoply of the Exchange's rules and procedures that currently
govern the trading of equity securities on the Exchange including,
among others, rules and procedures governing trading halts,
surveillance procedures, disclosures to members, customer suitability
requirements, and market maker obligations. For the initial listing of
each series of Commodity-Based Trust Shares, Equity Gold Shares,
Commodity Index Trust Shares, Commodity Futures Trust Shares,
Partnership Units, and Trust Units, the Exchange must establish a
minimum number of such securities required to be outstanding at the
commencement of trading on the Exchange. In addition, for the initial
listing of Trust Units, BATS must obtain a representation from the
issuer of a series of Trust Units that the net asset value per share
for the series will be calculated daily and will be made available to
all market participants at the same time.
---------------------------------------------------------------------------

    \73\ The proposed listing rules for Equity Gold Shares provide
that the provisions set forth in proposed Rule 14.11(e)(4)
(Commodity-Based Trust Shares) will apply to Equity Gold Shares.
Thus, all of the listing requirements applicable to Commodity-Based
Trust Shares will also apply to Equity Gold Shares.
---------------------------------------------------------------------------

    As further discussed above, the Exchange may consider suspending
trading in, or removing from listing, a series of Commodity-Based Trust
Shares, Equity Gold Shares, Commodity Index Trust Shares, Commodity
Futures Trust Shares, Partnership Units, or Trust Units if there are
fewer than 50 record and/or or beneficial holders of such series for 30
or more consecutive trading days. In addition, with respect to
Commodity-Based Trust Shares, Equity Gold Shares, Commodity Futures
Trust Shares, Partnership Units, and Trust Units, the Exchange may
consider suspending trading in, or removing from listing, a series if
there are fewer than 50,000 such securities issued and outstanding or
if the market value of all such securities issued and outstanding is
less than $1,000,000. The Exchange may also consider suspending trading
in, or removing from listing, a series of Commodity-Based Trust Shares,
Equity Gold Shares, Commodity Index Trust Shares, Commodity Futures
Trust Shares, or Partnership Units if the value of the underlying
benchmark is no longer calculated or available on at least a 15-second
delayed basis from an unaffiliated source, or the Intraday Indicative
Value is no longer made available on at least a 15-second delayed
basis. In the case of Commodity Index Trust Shares and Commodity
Futures Trust Shares, the Exchange may further consider suspending
trading in, or removing from listing, a series if the net asset value
for such series is no longer disseminated to all market participants at
the same time. Finally, the Exchange may consider suspending trading
in, or removing from listing, such securities if such other event shall
occur or condition exists which in the opinion of BATS makes further
dealings on the Exchange inadvisable.
    The Commission believes that the proposed initial and continued
listing standards are adequate to ensure transparency of key values and
information regarding the Commodity-Based Trust Shares, Equity Gold
Shares, Commodity Index Trust Shares, Commodity Futures Trust Shares,
Partnership Units, and Trust Units, and will help ensure a minimum
level of liquidity exists for such securities to minimize the potential
for manipulation and allow for the maintenance of fair and orderly
markets. In addition, the Exchange will have flexibility to delist a
series if circumstances warrant such action.
b. Dissemination of Information
    The Exchange has represented that it may halt trading during the
day on which an interruption to the dissemination of the Intraday
Indicative Value or the value of the underlying index or assets occurs,
and that BATS will halt trading no later than the beginning of trading
following the trading day when the interruption began if such
interruption persists at that time.\74\ In addition, the Exchange has
represented that if it becomes aware that the net asset value
applicable to a series of Commodity-Based Trust Shares, Equity Gold
Shares, Commodity Index Trust Shares, Commodity Futures Trust Shares,
Partnership Units, or Trust Units is not being disseminated to all
market participants at the same time, it will halt trading in such
series until such time as the net asset value is available to all
market participants.\75\ The Commission believes that the proposal is
reasonably designed to promote the timely and fair disclosure of useful
information that may be necessary to price the Commodity-Based Trust
Shares, Equity Gold Shares, Commodity Index Trust Shares, Commodity
Futures Trust Shares, Partnership Units, and Trust Units appropriately,
to prevent trading when a reasonable degree of transparency cannot be
assured, and to maintain a fair and orderly market for such securities.
---------------------------------------------------------------------------

    \74\ See Notice, supra note 4, 78 FR at 41478. A similar
requirement is contained in the proposed rules relating to Currency
Trust Shares, Commodity Futures Trust Shares, and Trust Units.
    \75\ See id. A similar requirement is contained in the proposed
rules relating to Currency Trust Shares, Commodity Futures Trust
Shares, and Trust Units.
---------------------------------------------------------------------------

c. Surveillance
    The Exchange has represented that trading of Commodity-Based Trust
Shares, Equity Gold Shares, Commodity Index Trust Shares, Commodity
Futures Trust Shares, Partnership Units, and Trust Units on BATS will
be subject to the Exchange's surveillance procedures for derivative
products, and that the Exchange's surveillance procedures applicable to
derivative products are adequate to address any concerns about the
trading of the Trust Certificates on BATS.\76\ In addition, the
proposed rules require BATS to implement written surveillance
procedures for Commodity Futures Trust Shares.
---------------------------------------------------------------------------

    \76\ See id.
---------------------------------------------------------------------------

d. Other Provisions
    The proposed rules impose additional reporting requirements,
trading restrictions and books and records obligations on members
acting as registered market makers in Commodity-Based Trust Shares,
Equity Gold Shares, Commodity Index Trust Shares, Commodity Futures
Trust Shares, Partnership Units, and Trust Units. The Commission
believes that such restrictions, reporting and record-keeping
requirements are reasonably designed to promote a fair and orderly
market for Commodity-Based Trust Shares, Equity Gold Shares, Commodity
Index Trust Shares, Commodity Futures Trust Shares, Partnership Units,
and Trust Units, and will assist the Exchange in identifying situations
potentially susceptible to manipulation.
    BATS has represented that it has a general policy prohibiting the
distribution of material, non-public information by its employees. In
addition, the proposed rules prescribe prospectus delivery requirements
for purchasers of each newly issued series of Commodity-Based Trust
Shares, Equity Gold Shares, Commodity Index Trust Shares, Commodity
Futures Trust Shares, Partnership Units and Trust Units. Further, the
Exchange has represented that prior to the commencement of trading in a
series of Commodity-Based Trust Shares, Equity

Gold Shares, Commodity Index Trust Shares, Commodity Futures Trust
Shares, Partnership Units, and Trust Units, the Exchange will inform
its members in an Information Circular of the special characteristics
and risks associated with trading such securities.\77\
---------------------------------------------------------------------------

    \77\ See id. at 41477.
---------------------------------------------------------------------------

    The Commission notes that the Exchange's proposed listing standards
for Commodity-Based Trust Shares, Equity Gold Shares, Commodity Index
Trust Shares, Commodity Futures Trust Shares, Partnership Units, and
Trust Units are substantively identical to the listing standards for
such securities on Nasdaq.\78\ As such, the Commission believes that
the proposed listing standards for these securities present no unique
or novel regulatory issues and, for the reasons discussed above, are
reasonably designed to protect investors and the public interest.
---------------------------------------------------------------------------

    \78\ See Nasdaq Rules 5711(d) (Commodity-Based Trust Shares),
5711(c) (Equity Gold Shares), 5711(e) (Currency Trust Shares),
5711(f) (Commodity Index Trust Shares), 5711(g) (Commodity Futures
Trust Shares), 5711(h) (Partnership Units), and 5711(i) (Trust
Units).
---------------------------------------------------------------------------

3. Managed Trust Securities
    The Commission finds that the Exchange's proposed rules and
procedures for the listing and trading of Managed Trust Securities are
consistent with the Act. The Commission believes the Exchange's
proposal to list and trade Managed Trust Securities will benefit
investors by increasing competition among markets that trade Managed
Trust Securities. The Commission notes that it has previously approved
the adoption of listing standards for Managed Trust Securities on
Nasdaq.\79\
---------------------------------------------------------------------------

    \79\ See supra note 35 (approving listing standards for Managed
Trust Securities).
---------------------------------------------------------------------------

a. Listing and Trading Rules
    The Commission finds that the Exchange's proposal contains adequate
rules and procedures to govern the listing and trading of Managed Trust
Securities. Prior to listing and/or trading on the Exchange, BATS must
file a separate proposed rule change pursuant to Section 19(b) of the
Act for each series of Managed Trust Securities. All Managed Trust
Securities listed and/or traded on BATS will be subject to the full
panoply of BATS rules and procedures that currently govern the trading
of equity securities on the Exchange including, among others, rules and
procedures governing trading halts, surveillance procedures,
disclosures to members, customer suitability requirements, and market
maker obligations. For the initial listing of each series of Managed
Trust Securities, the Exchange must establish a minimum number of
Managed Trust Securities required to be outstanding at the commencement
of trading. In addition, the Exchange must obtain a representation from
the issuer of Managed Trust Securities 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.
    For continued listing of each series of Managed Trust Securities,
the Intraday Indicative Value must be widely disseminated by one or
more major market data vendors at least every 15 seconds during Regular
Trading Hours.\80\ Further, the Disclosed Portfolio must be
disseminated at least once daily and made available to all market
participants at the same time. The Exchange may also consider the
suspension of trading in, or removal from listing of, a series of
Managed Trust Securities if: (i) Following the initial 12-month period
after commencement of trading on the Exchange of a series of Managed
Trust Securities, (A) the trust has fewer than 50,000 securities issued
and outstanding, (B) the market value of all securities issued and
outstanding is less than $1,000,000, or there are fewer than 50
beneficial holders of such series for 30 or more consecutive trading
days; (ii) the Intraday Indicative Value is no longer calculated or
available or the Disclosed Portfolio is not made available to all
market participants at the same time; (iii) the trust has failed to
file any filings required by the Commission or if the Exchange becomes
aware that the trust is not in compliance with the conditions of any
exemptive order or no-action relief granted by the Commission to the
trust with respect to the series of Managed Trust Securities; or (iv)
such other event shall occur or condition exists which in the opinion
of the Exchange makes further dealings on the Exchange inadvisable.
---------------------------------------------------------------------------

    \80\ The rules of other national securities exchanges governing
the listing and trading of Managed Trust Securities differs in that
the rules of other listing exchanges require that the Intraday
Indicative Value for such securities be widely disseminated by one
or more major market data vendors at least every 15 seconds while
Managed Fund Securities trade on those exchanges. See NYSE Arca
Equities Rule 8.600(d)(2)(A); Nasdaq Rule 5711(j)(v)(B)(1). The
Commission understands that Intraday Indicative Values for Managed
Trust Securities are calculated and disseminated only during Regular
Trading Hours, and therefore the Commission finds that the BATS
continued listing criterion, as proposed to be amended, is more
consistent with the calculation and dissemination of Intraday
Indicative Values for Managed Trust Securities that may trade beyond
Regular Trading Hours on the Exchange.
---------------------------------------------------------------------------

    The Commission believes that the proposed initial and continued
listing and trading standards for Managed Trust Securities are adequate
to ensure transparency of key values and information regarding the
securities, and will help ensure a minimum level of liquidity exists
for such securities to allow for the maintenance of fair and orderly
markets. In addition, the Exchange will have flexibility to delist a
series if circumstances warrant such action.
b. Dissemination of Information
    The Commission finds that the Exchange's proposed rules with
respect to trading halts should help ensure the availability of key
values and information relating to Managed Trust Securities and to
prevent trading when a reasonable degree of transparency cannot be
assured. Under the proposal, if the Intraday Indicative Value is not
being disseminated as required, the Exchange may halt trading during
the day in which the interruption to the dissemination of the Intraday
Indicative Value occurs. If the interruption of such value persists
past the trading day in which it occurred, the Exchange must halt
trading no later than the beginning of the trading day following the
interruption.\81\ In addition, if the Exchange becomes aware that the
NAV or Disclosed Portfolio related to a series of Managed Trust
Securities is not being disseminated to all market participants at the
same time, the Exchange will halt trading in such series of Managed
Trust Securities until such time as the NAV or the Disclosed Portfolio
is available to all market participants.
---------------------------------------------------------------------------

    \81\ If a series of Managed Trust Securities is trading on the
Exchange pursuant to unlisted trading privileges, the Exchange will
halt trading in that series, as specified in BATS Rule 11.8, as
applicable. See BATS Rule 11.8 (setting forth rules regarding
trading halts for certain derivative securities products).
---------------------------------------------------------------------------

c. Surveillance
    Pursuant to the proposed rules, BATS will implement written
surveillance procedures applicable to Managed Trust Securities. The
Exchange has represented that trading of Managed Trust Securities on
BATS will be subject to the Exchange's surveillance procedures for
derivative products, and that the Exchange's surveillance procedures
applicable to derivative products are adequate to address any concerns
about the trading of the Managed Trust Securities on BATS.\82\
---------------------------------------------------------------------------

    \82\ See Notice, supra note 4, 78 FR at 41478.

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

d. Other Provisions
    BATS has represented that it has a general policy prohibiting the
distribution of material, non-public information by its employees.\83\
In addition, the proposed rules require that: (i) If the trust's
advisor is affiliated with a broker-dealer, the broker-dealer must
erect a ``firewall'' around the personnel who have access to
information concerning changes and adjustments to the Disclosed
Portfolio; (ii) personnel who make decisions on the trust's portfolio
composition must be subject to procedures designed to prevent the use
and dissemination of material, non-public information regarding the
applicable trust portfolio; and (iii) the Reporting Authority that
provides the Disclosed Portfolio implement and maintain, or be subject
to, procedures designed to prevent the use and dissemination of
material, non-public information regarding the actual components of the
portfolio. The Commission believes that the proposed ``firewall''
restrictions applicable to Managed Trust Securities are reasonably
designed to prevent the use and dissemination of material, non-public
information regarding the Disclosed Portfolio, prevent conflicts of
interest with respect to personnel of a broker-dealer maintaining the
Disclosed Portfolio and to promote fair and orderly markets.
---------------------------------------------------------------------------

    \83\ See id.
---------------------------------------------------------------------------

    The proposed rules prescribe prospectus delivery requirements for
purchasers of each newly issued series of Managed Trust Securities. In
addition, the Exchange has represented that prior to the commencement
of trading in a series of Managed Trust Securities, the Exchange will
inform its members in an Information Circular of the special
characteristics and risks associated with trading the Managed Trust
Securities.\84\
---------------------------------------------------------------------------

    \84\ See id.
---------------------------------------------------------------------------

    The proposed rules impose additional reporting requirements,
trading restrictions and books and records obligations on registered
market makers in Managed Trust Securities. The Commission believes that
such restrictions, reporting and record-keeping requirements are
reasonably designed to promote a fair and orderly market for Managed
Trust Securities, and will assist the Exchange in identifying
situations potentially susceptible to manipulation.
    The Commission notes that the Exchange's proposed listing standards
for Managed Trust Securities are substantively identical to the listing
standards for Managed Trust Securities on Nasdaq.\85\ As such, the
Commission believes that the proposed listing standards present no
unique or novel regulatory issues and, for the reasons discussed above,
are reasonably designed to protect investors and the public interest.
---------------------------------------------------------------------------

    \85\ See Nasdaq Rule 5711(j).
---------------------------------------------------------------------------

4. Currency Warrants
    The Commission finds that the Exchange's proposed rules and
procedures for the listing and trading of Currency Warrants are
consistent with the Act. The Commission believes the Exchange's
proposal to list and trade Currency Warrants will benefit investors by
increasing competition among markets that trade Currency Warrants. The
Commission notes that it has approved the adoption of listing standards
and related rules for Currency Warrants on Nasdaq.\86\
---------------------------------------------------------------------------

    \86\ See supra note 35. See also NOM Rules, Chapter XI, Sections
7, 8, 9, 10 and 24.
---------------------------------------------------------------------------

a. Listing and Trading Rules
    The Commission finds that the Exchange's proposal contains adequate
rules and procedures to govern the listing and trading of Currency
Warrants. Prior to listing and/or trading on the Exchange, BATS must
file a separate proposed rule change pursuant to Section 19(b) of the
Act for each series of Currency Warrants, and the listing of Currency
Warrants will be considered on a case-by-case basis. The Exchange has
represented that Currency Warrants are deemed to be equity securities,
thus rendering trading in Currency Warrants subject to the Exchange's
existing rules governing the trading of equity securities.\87\
---------------------------------------------------------------------------

    \87\ See Notice, supra note 4, 78 FR at 41478.
---------------------------------------------------------------------------

    The Commission is satisfied with the Exchange's development of
specific listing criteria for Currency Warrants. As described more
fully above, the proposed listing criteria include minimum tangible net
worth and earnings requirements for issuers. These criteria are, in
part, intended to ensure that the issuer has enough assets to meet its
obligations under the terms of the warrant and should help to reduce
systemic risk. The proposed listing criteria also include minimum
holder, distribution and market value requirements, which should serve
to establish a minimum level of liquidity for each series of Currency
Warrants to allow for maintenance of fair and orderly markets.
b. Dissemination of Information
    The proposed rules provide that trading on BATS in any Currency
Warrant shall be halted whenever BATS deems such action appropriate in
the interests of a fair and orderly market or to protect investors.
Trading in Currency Warrants that have been the subject of a halt or
suspension by BATS may resume if BATS determines that the conditions
which led to the halt or suspension are no longer present, or that the
interests of a fair and orderly market are best served by a resumption
of trading. In addition, the Exchange has represented that it may halt
trading in a series of Currency Warrants during the day on which an
interruption to the dissemination of the Intraday Indicative Value or
the value of the underlying currency occurs, and that BATS will halt
trading no later than the beginning of trading following the trading
day when the interruption began if such interruption persists at that
time.\88\ The Commission believes that the proposal is reasonably
designed to promote the timely and fair disclosure of useful
information that may be necessary to price the Currency Warrants
appropriately, and to prevent trading when a reasonable degree of
transparency cannot be assured.
---------------------------------------------------------------------------

    \88\ See id.
---------------------------------------------------------------------------

c. Surveillance
    The Exchange has represented that trading of Currency Warrants on
BATS will be subject to the Exchange's surveillance procedures for
derivative products, and that the Exchange's surveillance procedures
applicable to derivative products are adequate to address any concerns
about the trading of the Currency Warrants on BATS.\89\
---------------------------------------------------------------------------

    \89\ See id.
---------------------------------------------------------------------------

d. Other Provisions
    Due to their derivative and leveraged nature, and the fact that
they are a wasting asset, many of the risks of trading in warrants are
similar to the risks of trading standardized options. Accordingly, the
Exchange has proposed to apply its options customer protection rules to
Currency Warrants. In particular, the Commission notes that Currency
Warrants will only be sold to options-approved accounts in accordance
with BATS Rule 26.2. In addition, the Exchange will apply the options
rules for suitability, discretionary accounts, supervision of accounts
and public customer complaints to transactions in Currency Warrants,
and that members participating in Currency Warrants shall be bound to
comply with the Communications and Disclosures rule of FINRA.

    The proposed rules establish reporting requirements for members
holding large positions in Currency Warrants. The Commission believes
that such reporting requirements are reasonably designed to promote a
fair and orderly market for Currency Warrants, and will assist the
Exchange in identifying situations potentially susceptible to
manipulation.
    BATS has represented that it has a general policy prohibiting the
distribution of material, non-public information by its employees.\90\
In addition, the Exchange has represented that prior to the
commencement of trading in a series of Currency Warrants, the Exchange
will inform its members in an Information Circular of the special
characteristics and risks associated with trading the Currency
Warrants.\91\
---------------------------------------------------------------------------

    \90\ See id.
    \91\ See id. at 41477.
---------------------------------------------------------------------------

    The Commission notes that the Exchange's proposed listing standards
and regulatory requirements relating to Currency Warrants are
substantively identical to the listing standards and regulatory
requirements for Currency Warrants listed and traded on Nasdaq.\92\ As
such, the Commission believes that the proposed listing standards
present no unique or novel regulatory issues and, for the reasons
discussed above, are reasonably designed to protect investors and the
public interest.
---------------------------------------------------------------------------

    \92\ See Nasdaq Rule 5711(k).
---------------------------------------------------------------------------

C. Additional Representations

    As discussed above, the Exchange has represented that the Subject
Securities are deemed to be equity securities, thus rendering trading
in the Subject Securities subject to the Exchange's existing rules
governing the trading of equity securities. In support of this
proposal, the Exchange has made representations, including:
    (1) The Exchange has appropriate rules to facilitate transactions
in the Subject Securities during all trading sessions.
    (2) The Exchange's surveillance procedures applicable to derivative
products are adequate to address any concerns about the trading of the
Subject Securities on BATS. The Exchange may obtain information via the
ISG from other exchanges who are members or affiliates of the ISG or
any other exchanges with which the Exchange has comprehensive
surveillance sharing agreements.
    (3) The Exchange has a general policy prohibiting the distribution
of material, non-public information by its employees.
    (4) To the extent a Subject Security holds investments in futures
contracts, not more than 10% of the weight of such futures contracts in
the aggregate shall consist of components whose principal trading
market is not a member of ISG or is a market with which the Exchange
does not have a comprehensive surveillance sharing agreement.
    (5) 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 Subject Securities. Specifically,
the Information Circular will discuss the following: (a) The risks
involved in trading the Subject Securities during the Opening Process
and Post-Market Sessions when an updated Intraday Indicative Value will
not be calculated or publicly disseminated and, if applicable, the
risks involved in trading the Subject Securities during the Regular
Market Session when the Intraday Indicative Value may be static or
based in part on the fluctuation of currency exchange rates when the
underlying markets have closed prior to the close of the Exchange's
Regular Market Session; (b) the procedures for purchases and
redemptions of the Subject Securities (and/or that the Subject
Securities are not individually redeemable); (c) BATS Rule 3.7, which
imposes suitability obligations on members with respect to recommending
transactions in the securities to customers; (d) how information
regarding the Intraday Indicative Value is disseminated; (e) the
requirement that members deliver a prospectus to investors purchasing
newly issued Subject Securities prior to or concurrently with the
confirmation of a transaction; and (f) trading information.
    (6) BATS may consider all relevant factors in exercising its
discretion to halt or suspend trading in the Subject Securities.
Trading in the Subject Securities may be halted because of market
conditions or for reasons that, in the view of BATS, make trading in
the securities inadvisable. These may include: (a) The extent to which
trading in the underlying asset or assets is not occurring; or (b)
whether other unusual conditions or circumstances detrimental to the
maintenance of a fair and orderly market are present.\93\
---------------------------------------------------------------------------

    \93\ In addition, trading in the Subject Securities will be
subject to trading halts caused by extraordinary market volatility
pursuant to the Exchange's ``circuit breaker'' Rule 11.8(d) or by
the halt or suspension of the trading of the current underlying
asset or assets. If the applicable Intraday Indicative Value, value
of the underlying index, or the value of the underlying asset or
assets (e.g., securities, commodities, currencies, futures
contracts, or other assets) is not being disseminated as required,
BATS may halt trading during the day in which such interruption to
the dissemination occurs. If the interruption to the dissemination
of the applicable Intraday Indicative Value, value of the underlying
index, or the value of the underlying asset or assets persists past
the trading day in which it occurred, BATS will halt trading no
later than the beginning of the trading day following the
interruption. In addition, if BATS becomes aware that the net asset
value with respect to a series of the Subject Securities is not
disseminated to all market participants at the same time, it will
halt trading in such series until such time as the net asset value
is available to all market participants.
---------------------------------------------------------------------------

    (7) Prior to the commencement of trading of any inverse, leveraged,
or inverse leveraged Subject Securities, BATS will inform its members
of the suitability requirements of BATS Rule 3.7 in the Information
Circular.\94\ The Information Circular will also reference, among other
things, the FINRA Regulatory Notices regarding sales practice and
customer margin requirements for FINRA members applicable to leveraged
exchange-traded products and options thereon. Members that carry
customer accounts will be required to follow the FINRA guidance set
forth in the FINRA Regulatory Notices.
---------------------------------------------------------------------------

    \94\ Specifically, members will be reminded in the Information
Circular that, in recommending transactions in these securities,
they must have a reasonable basis to believe that (1) the
recommendation is suitable for a customer given reasonable inquiry
concerning the customer's investment objectives, financial
situation, needs, and any other information known by such member,
and (2) the customer can evaluate the special characteristics, and
is able to bear the financial risks, of an investment in the
securities. In connection with the suitability obligation, the
Information Circular will also provide that members must make
reasonable efforts to obtain the following information: (1) The
customer's financial status; (2) the customer's tax status; (3) the
customer's investment objectives; and (4) such other information
used or considered to be reasonable by such member or registered
representative in making recommendations to the customer. See Rule
3.7.
---------------------------------------------------------------------------

    This approval order is based on all of the Exchange's
representations. The Commission again notes that the proposed listing
standards for the Subject Securities are substantively identical to
previously approved listing standards for the corresponding products on
Nasdaq.\95\
---------------------------------------------------------------------------

    \95\ See supra notes 28, 35, 48, 57, 64, 71, 78, 85, and 92.

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

    The Commission believes that the proposal should help to facilitate
the listing and trading of additional types of exchange-traded products
that should enhance competition among market participants, to the
benefit of investors and the marketplace. In addition, the Commission
believes that the listing and trading criteria for the Subject
Securities set forth in amended Rule 14.11(d) and proposed Rule
14.11(e) are reasonably designed to protect investors and the public
interest, as discussed herein. For the foregoing reasons, the
Commission finds that the proposed rule change, as amended, is
consistent with the Act and the rules and regulations thereunder
applicable to a national securities exchange, and, in particular, with
Section 6(b)(5) of the Act.\96\
---------------------------------------------------------------------------

    \96\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\97\ that the proposed rule change (SR-BATS-2013-038), as modified
by Amendment No. 1 thereto, be, and it hereby is, approved.
---------------------------------------------------------------------------

    \97\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\98\
---------------------------------------------------------------------------

    \98\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Elizabeth M. Murphy,
Secretary.
[FR Doc. 2013-21036 Filed 8-28-13; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 81, Number 136 (Friday, July 15, 2016)]
[Notices]
[Pages 46084-46086]
[FR Doc No: 2016-16735]

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

DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

[Docket No. FDA-2016-D-1703]

Principles for Codevelopment of an In Vitro Companion Diagnostic
Device With a Therapeutic Product; Draft Guidance for Industry and Food
and Drug Administration Staff; Availability

AGENCY: Food and Drug Administration, HHS.

ACTION: Notice of availability.

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

SUMMARY: The Food and Drug Administration (FDA) is announcing the
availability of the draft guidance entitled ``Principles for
Codevelopment of an In Vitro Companion Diagnostic Device with a
Therapeutic Product.'' This draft guidance is intended to be a
practical guide to assist therapeutic product sponsors and in vitro
diagnostic device (IVD) sponsors in developing a therapeutic product
with an accompanying IVD companion diagnostic, a process referred to as
codevelopment. This draft guidance is also intended to assist FDA staff
participating in the review of such IVD companion diagnostics or their
associated therapeutic products. This draft guidance is not final nor
is it in effect at this time.

DATES: Although you can comment on any guidance at any time (see 21 CFR
10.115(g)(5)), to ensure that the Agency considers your comment of this
draft guidance before it begins work on the final version of the
guidance, submit either electronic or written comments on the draft
guidance by October 13, 2016.

ADDRESSES: You may submit comments as follows:

Electronic Submissions

    Submit electronic comments in the following way:
     Federal eRulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments. Comments submitted
electronically, including attachments, to http://www.regulations.gov
will be posted to the docket unchanged. Because your comment will be
made public, you are solely responsible for ensuring that your comment
does not include any confidential information that you or a third party
may not wish to be posted, such as medical information, your or anyone
else's Social Security number, or confidential business information,
such as a manufacturing process. Please note that if you include your
name, contact information, or other information that

identifies you in the body of your comments, that information will be
posted on http://www.regulations.gov.
     If you want to submit a comment with confidential
information that you do not wish to be made available to the public,
submit the comment as a written/paper submission and in the manner
detailed (see ``Written/Paper Submissions'' and ``Instructions'').

Written/Paper Submissions

    Submit written/paper submissions as follows:
     Mail/Hand delivery/Courier (for written/paper
submissions): Division of Dockets Management (HFA-305), Food and Drug
Administration, 5630 Fishers Lane, Rm. 1061, Rockville, MD 20852.
     For written/paper comments submitted to the Division of
Dockets Management, FDA will post your comment, as well as any
attachments, except for information submitted, marked and identified,
as confidential, if submitted as detailed in ``Instructions.''
    Instructions: All submissions received must include the Docket No.
FDA-2016-D-1703 for ``Principles for Codevelopment of an In Vitro
Companion Diagnostic Device with a Therapeutic Product; Draft Guidance
for Industry and Food and Drug Administration Staff.'' Received
comments will be placed in the docket and, except for those submitted
as ``Confidential Submissions,'' publicly viewable at http://www.regulations.gov or at the Division of Dockets Management between 9
a.m. and 4 p.m., Monday through Friday.
     Confidential Submissions--To submit a comment with
confidential information that you do not wish to be made publicly
available, submit your comments only as a written/paper submission. You
should submit two copies total. One copy will include the information
you claim to be confidential with a heading or cover note that states
``THIS DOCUMENT CONTAINS CONFIDENTIAL INFORMATION.'' The Agency will
review this copy, including the claimed confidential information, in
its consideration of comments. The second copy, which will have the
claimed confidential information redacted/blacked out, will be
available for public viewing and posted on http://www.regulations.gov.
Submit both copies to the Division of Dockets Management. If you do not
wish your name and contact information to be made publicly available,
you can provide this information on the cover sheet and not in the body
of your comments and you must identify this information as
``confidential.'' Any information marked as ``confidential'' will not
be disclosed except in accordance with 21 CFR 10.20 and other
applicable disclosure law. For more information about FDA's posting of
comments to public dockets, see 80 FR 56469, September 18, 2015, or
access the information at: http://www.fda.gov/regulatoryinformation/dockets/default.htm.
    Docket: For access to the docket to read background documents or
the electronic and written/paper comments received, go to http://www.regulations.gov and insert the docket number, found in brackets in
the heading of this document, into the ``Search'' box and follow the
prompts and/or go to the Division of Dockets Management, 5630 Fishers
Lane, Rm. 1061, Rockville, MD 20852.
    An electronic copy of the draft guidance s available for download
from the Internet. See the SUPPLEMENTARY INFORMATION section for
information on electronic access to the guidance. Submit written
requests for a single hard copy of the draft guidance entitled
``Principles for Codevelopment of an In Vitro Companion Diagnostic
Device with a Therapeutic Product'' to the Office of the Center
Director, Guidance and Policy Development, Center for Devices and
Radiological Health, Food and Drug Administration, 10903 New Hampshire
Ave., Bldg. 66, Rm. 5431, Silver Spring, MD 20993-0002; or the Office
of Communication, Outreach, and Development, Center for Biologics
Evaluation and Research, Food and Drug Administration, 10903 New
Hampshire Ave., Bldg. 71, Rm. 3128, Silver Spring, MD 20993-0002; or
Office of Communications, Division of Drug Information, Center for Drug
Evaluation and Research, Food and Drug Administration, 10001 New
Hampshire Ave., Hillandale Building, 4th Floor, Silver Spring, MD
20993-0002. Send one self-addressed adhesive label to assist that
office in processing your request.

FOR FURTHER INFORMATION CONTACT: Pamela Bradley, Center for Devices and
Radiological Health, Food and Drug Administration, 10903 New Hampshire
Ave., Bldg. 66, Silver Spring, MD 20993-0002,<PHONE_NUMBER>; or Stephen
Ripley, Center for Biologics Evaluation and Research, Food and Drug
Administration, 10903 New Hampshire Ave., Bldg. 71, Rm. 7301, Silver
Spring, MD 20993,<PHONE_NUMBER>; or Christopher Leptak, Center for Drug
Evaluation and Research, 10903 New Hampshire Ave., Bldg. 22, Rm. 6462,
Silver Spring, MD 20993,<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

I. Background

    This draft guidance is intended to be a practical guide to assist
therapeutic product sponsors and IVD sponsors in developing a
therapeutic product, with an accompanying IVD companion diagnostic, a
process referred to as codevelopment. This draft guidance is also
intended to assist FDA staff participating in the review of such IVD
companion diagnostics or their associated therapeutic products.
    This draft guidance describes general principles to guide
codevelopment to support obtaining contemporaneous marketing
authorization for a therapeutic product and its corresponding IVD
companion diagnostic; certain regulatory requirements that sponsors
should be aware of as they develop such products; considerations for
planning and executing a therapeutic product clinical trial that also
includes the investigation of an IVD companion diagnostic; and
administrative issues in the submission process for the therapeutic
product and the IVD companion diagnostic.

II. Significance of Guidance

    This draft guidance is being issued consistent with FDA's good
guidance practices regulation (21 CFR 10.115). The draft guidance, when
finalized, will represent the Agency's current thinking on ``Principles
for Codevelopment of an In Vitro Companion Diagnostic Device with a
Therapeutic Product.'' It does not establish any rights for any person
and is not binding on FDA or the public. You can use an alternative
approach if it satisfies the requirements of the applicable statutes
and regulations.

III. Electronic Access

    Persons interested in obtaining a copy of the draft guidance may do
so by downloading an electronic copy from the Internet. A search
capability for all Center for Devices and Radiological Health guidance
documents is available at http://www.fda.gov/MedicalDevices/DeviceRegulationandGuidance/GuidanceDocuments/default.htm. Guidance
documents are also available at http://www.fda.gov/BiologicsBloodVaccines/GuidanceComplianceRegulatoryInformation/default.htm or http://www.fda.gov/Drugs/GuidanceComplianceRegulatoryInformation/Guidances/default.htm or http://www.regulations.gov. Persons unable to download an electronic copy of
``Principles for Codevelopment of an In Vitro Companion Diagnostic
Device with a Therapeutic Product'' may send an email request to CDRH-
Guidance@

fda.hhs.gov to receive an electronic copy of the document. Please use
the document number 1400027 to identify the guidance you are
requesting.

IV. Paperwork Reduction Act of 1995

    This draft guidance refers to previously approved collections of
information found in FDA regulations and guidance documents. These
collections of information are subject to review by the Office of
Management and Budget (OMB) under the Paperwork Reduction Act of 1995
(44 U.S.C. 3501-3520). The collections of information in 21 CFR parts
801 and 809 have been approved under OMB control number 0910-0485; the
collections of information in parts 50 and 56 have been approved under
OMB control number 0910-0130; the collections of information in 21 CFR
part 812 have been approved under OMB control number 0910-0078; the
collections of information in 21 CFR part 814 subparts B and E have
been approved under OMB control number 0910-0231; the collections of
information in 21 CFR part 814, subpart H, have been approved under OMB
control number 0910-0332; the collections of information in 21 CFR part
807, subpart E, have been approved under OMB control number 0901-0120;
the collections of information in 21 CFR part 820 have been approved
under OMB control number 0910-0073; the collections of information in
21 CFR part 601 have been approved under OMB control number 0910-0338;
the collections of information in 21 CFR part 312 have been approved
under OMB control number 0910-0014; the collections of information in
21 CFR part 314 have been approved under OMB control number 0910-0001;
and the collections of information resulting from special protocol
assessments have been approved under OMB control number 0910-0470.

    Dated: July 11, 2016.
Leslie Kux,
Associate Commissioner for Policy.
[FR Doc. 2016-16735 Filed 7-14-16; 8:45 am]
 BILLING CODE 4164-01-P


[Federal Register Volume 83, Number 131 (Monday, July 9, 2018)]
[Notices]
[Pages 31742-31743]
[FR Doc No: 2018-14553]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. CD18-10-000]

City of Englewood, Colorado; Notice of Preliminary Determination
of a Qualifying Conduit Hydropower Facility and Soliciting Comments and
Motions To Intervene

    On June 15, 2018, the City Of Englewood, Colorado (Englewood) filed
a notice of intent to construct a qualifying conduit hydropower
facility, pursuant to section 30 of the Federal Power Act (FPA), as
amended by section 4 of the Hydropower Regulatory Efficiency Act of
2013 (HREA). The proposed Big Dry Creek Hydropower Station Project
would have an installed capacity of 5 kilowatts (kW), and would be
located along a diversion pipeline that would route poor-quality water
around Englewood's primary municipal water intake facility. The project
would be located near the City of Englewood in Arapahoe County,
Colorado.
    Applicant Contact: Aliina Fowler, ERO Resources Corp., 1842
Clarkson Street, Denver, CO 80218; Phone No.<PHONE_NUMBER>; email:
[email protected].
    FERC Contact: Robert Bell, Phone No.<PHONE_NUMBER>; Email:
[email protected].
    Qualifying Conduit Hydropower Facility Description: The proposed
project would consist of: (1) A nine-foot, six-inch cylindrical vault
containing a single turbine with a total generating capacity of 5 kW;
(2) a 20-inch-wide, 900-foot-long pipeline that diverts water from the
Big Dry Creek around Englewood's municipal water intake; (3) a 24-inch-
wide, 65-foot-long discharge pipeline returning water to the South
Platte River; and (4) appurtenant facilities. The proposed project
would have an estimated annual generation of 43.8 megawatt-hours.
    A qualifying conduit hydropower facility is one that is determined
or deemed to meet all of the criteria shown in the table below.

      Table 1--Criteria for Qualifying Conduit Hydropower Facility
------------------------------------------------------------------------
      Statutory provision              Description       Satisfies (Y/N)
------------------------------------------------------------------------
FPA 30(a)(3)(A), as amended by   The conduit the                      Y
 HREA.                            facility uses is a
                                  tunnel, canal,
                                  pipeline, aqueduct,
                                  flume, ditch, or
                                  similar manmade water
                                  conveyance that is
                                  operated for the
                                  distribution of water
                                  for agricultural,
                                  municipal, or
                                  industrial
                                  consumption and not
                                  primarily for the
                                  generation of
                                  electricity.
FPA 30(a)(3)(C)(i), as amended   The facility is                      Y
 by HREA.                         constructed,
                                  operated, or
                                  maintained for the
                                  generation of
                                  electric power and
                                  uses for such
                                  generation only the
                                  hydroelectric
                                  potential of a non-
                                  federally owned
                                  conduit.
FPA 30(a)(3)(C)(ii), as amended  The facility has an                  Y
 by HREA.                         installed capacity
                                  that does not exceed
                                  5 megawatts.
FPA 30(a)(3)(C)(iii), as         On or before August 9,               Y
 amended by HREA.                 2013, the facility is
                                  not licensed, or
                                  exempted from the
                                  licensing
                                  requirements of Part
                                  I of the FPA.
------------------------------------------------------------------------

    Preliminary Determination:
    The proposed hydroelectric project will not interfere with the
primary purpose of the conduit, which is to aid the City of Englewood's
municipal water supply system. Therefore, based upon the above
criteria, Commission staff preliminarily determines that the proposal
satisfies the requirements for a

qualifying conduit hydropower facility, which is not required to be
licensed or exempted from licensing.
    Comments and Motions to Intervene: Deadline for filing comments
contesting whether the facility meets the qualifying criteria is 45
days from the issuance date of this notice.
    Deadline for filing motions to intervene is 30 days from the
issuance date of this notice.
    Anyone may submit comments or a motion to intervene in accordance
with the requirements of Rules of Practice and Procedure, 18 CFR
385.210 and 385.214. Any motions to intervene must be received on or
before the specified deadline date for the particular proceeding.
    Filing and Service of Responsive Documents: All filings must (1)
bear in all capital letters the ``COMMENTS CONTESTING QUALIFICATION FOR
A CONDUIT HYDROPOWER FACILITY'' or ``MOTION TO INTERVENE,'' as
applicable; (2) state in the heading the name of the applicant and the
project number of the application to which the filing responds; (3)
state the name, address, and telephone number of the person filing; and
(4) otherwise comply with the requirements of sections 385.2001 through
385.2005 of the Commission's regulations.\1\ All comments contesting
Commission staff's preliminary determination that the facility meets
the qualifying criteria must set forth their evidentiary basis.
---------------------------------------------------------------------------

    \1\ 18 CFR 385.2001-2005 (2017).
---------------------------------------------------------------------------

    The Commission strongly encourages electronic filing. Please file
motions to intervene and comments using the Commission's eFiling system
at http://www.ferc.gov/docs-filing/efiling.asp. Commenters can submit
brief comments up to 6,000 characters, without prior registration,
using the eComment system at http://www.ferc.gov/docs-filing/ecomment.asp. You must include your name and contact information at the
end of your comments. For assistance, please contact FERC Online
Support at [email protected],<PHONE_NUMBER> (toll free), or
(202) 502-8659 (TTY). In lieu of electronic filing, please send a paper
copy to: Secretary, Federal Energy Regulatory Commission, 888 First
Street NE, Washington, DC 20426. A copy of all other filings in
reference to this application must be accompanied by proof of service
on all persons listed in the service list prepared by the Commission in
this proceeding, in accordance with 18 CFR 4.34(b) and 385.2010.
    Locations of Notice of Intent: Copies of the notice of intent can
be obtained directly from the applicant or such copies can be viewed
and reproduced at the Commission in its Public Reference Room, Room 2A,
888 First Street NE, Washington, DC 20426. The filing may also be
viewed on the web at http://www.ferc.gov/docs-filing/elibrary.asp using
the ``eLibrary'' link. Enter the docket number (i.e., CD18-10) in the
docket number field to access the document. For assistance, call toll-
free 1-866-208-3676 or email [email protected]. For TTY, call
(202) 502-8659.

    Dated: June 29, 2018.
Kimberly D. Bose,
Secretary.
[FR Doc. 2018-14553 Filed 7-6-18; 8:45 am]
 BILLING CODE 6717-01-P