[Federal Register Volume 84, Number 86 (Friday, May 3, 2019)]
[Notices]
[Pages 19141-19148]
[FR Doc No: 2019-09145]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-85751; File No. SR-NYSEArca-2019-28]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
of Proposed Rule Change To List and Trade Shares of the Virtus WMC
Risk-Managed Alternative Equity ETF

April 30, 2019.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given
that, on April 15, 2019, NYSE Arca, Inc. (``NYSE Arca'' or the
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the 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 Virtus WMC
Risk-Managed Alternative Equity ETF under NYSE Arca Rule 8.600-E. The
proposed change is available on the Exchange's website at www.nyse.com,
at the principal office of the Exchange, and at the Commission's Public
Reference Room.

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

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

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

1. Purpose
    The Exchange proposes to list and trade shares (``Shares'') of the
Virtus WMC Risk-Managed Alternative Equity ETF (the ``Fund'') under
NYSE Arca Rule 8.600-E, which provides generic criteria applicable to
the listing and trading of Managed Fund Shares on the Exchange.\4\
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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) (the ``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 Rule 5.2-E(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.
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    The Fund is a series of ETFis Series I (``Trust''). Virtus ETF
Advisors LLC (the ``Adviser'') is the investment adviser for the Fund.
Wellington Management Company LLP is the sub-adviser to the Fund (the
``Sub-Adviser''). The Trust and the Adviser have engaged the Sub-
Adviser to manage the Fund's investments, subject to the oversight and
supervision of the Adviser and the Board of Trustees of the Trust.\5\
ETF Distributors LLC (``Distributor''), a registered broker-dealer,
will act as the distributor for the Fund's Shares. The Bank of New York
Mellon (``BNY Mellon'') will serve as the custodian, administrator and
transfer agent (``Transfer Agent'') for the Fund.
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    \5\ The Trust is registered under the 1940 Act. On February 28,
2019, the Trust filed with the Commission Post-Effective Amendment
No. 155 to the Trust's registration statement on Form N-1A under the
Securities Act of 1933 (15 U.S.C. 77a) (``Securities Act''), and
under the 1940 Act relating to the Fund (File Nos. 333-187668 and
811-22819) (``Registration Statement''). The Trust will file an
amendment to the Registration Statement as necessary to conform to
the representations in this filing. The description of the operation
of the Trust and the Fund herein is based, in part, on the
Registration Statement. In addition, the Commission has issued an
order granting certain exemptive relief to the Trust under the1940
Act. See Investment Company Act Release No. 30607 (July 23, 2013)
(File No. 812-14080).
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    Commentary .06 to Rule 8.600-E 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
and maintain 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
non-public information

regarding the open-end fund's portfolio. Commentary .06 to Rule 8.600-E
is similar to Commentary .03(a)(i) and (iii) to NYSE Arca Rule 5.2-
E(j)(3); however, Commentary .06 in connection with the establishment
and maintenance 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 the Sub-Adviser are not registered as broker-
dealers. The Adviser and Sub-Adviser are affiliated with one or more
broker-dealers and have implemented and will maintain a ``fire wall''
with respect to each such broker-dealer regarding access to information
concerning the composition and/or changes to the Fund's portfolio. In
the event (a) the Adviser or 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 and maintain a
``fire wall'' with respect to its relevant personnel or broker-dealer
affiliate regarding access to information concerning the composition
and/or changes to the portfolio, and will be subject to procedures,
each designed to prevent the use and dissemination of material non-
public information regarding such portfolio.
Virtus WMC Risk-Managed Alternative Equity ETF
Principal Investments
    According to the Registration Statement, the investment objective
of the Fund is to seek to provide superior risk-adjusted total returns
over the long term. The Fund will seek to achieve its investment
objective, under normal market conditions,\6\ by (i) investing in a
broadly diversified portfolio of global equity securities in both
developed and emerging markets, and (ii) implementing a beta management
strategy by shorting futures contracts and purchasing and selling
options, as further described below. By combining these two strategies,
the Sub-Adviser seeks to generate superior total returns (i.e., returns
in excess of the average returns of broad global equity market indexes)
over a full market cycle with significant downside equity market
protection (i.e., protection intended to limit losses in a declining
market), consistent with the risk/return profile of investments in
long/short equity (also referred to as alternative equity) hedge funds.
Although the Sub-Adviser will seek for the Fund's risk/return profile
to be consistent with investments in long/short equity hedge funds, the
Fund itself does not invest in hedge funds. Under normal market
conditions, the Fund will invest at least 80% of its net assets (plus
any borrowings for investment purposes) in equity securities (as
discussed below), in derivatives,\7\ cash and cash equivalents and
other instruments (as discussed below), that have economic
characteristics similar to such investments (together, the ``Principal
Investments'').
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    \6\ The term ``normal market conditions'' is defined in NYSE
Arca Rule 8.600-E(c)(5).
    \7\ The Fund's investments in derivatives will include
investments in both listed derivatives and over-the-counter
(``OTC'') derivatives, as those terms are defined in Commentary
.01(d) and (e) to NYSE Arca Rule 8.600-E.
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    The Fund will invest in the following U.S. and non-U.S. exchange-
listed equity securities of U.S. and non-U.S. issuers: Common stock;
preferred stock; convertible preferred stock; rights; warrants;
American Depositary Receipts (``ADRs'') and Global Depositary Receipts
(``GDRs''); and real estate investment trusts (``REITs'') of U.S. and
foreign issuers.
    The Fund may hold cash and cash equivalents.\8\
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    \8\ The term ``cash equivalents'' is defined in Commentary
.01(c) to NYSE Arca Rule 8.600-E.
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    The Fund may hold U.S. and non-U.S. exchange-traded futures and
options on equity securities, equity securities indices, and interest
rates. Options held by the Fund may be either exchange-listed or traded
over-the-counter (``OTC'').
    The Fund may invest in forward foreign currency contracts and U.S.
and non-U.S. exchange-traded foreign currency futures contracts.
    The Fund may enter into short sales of any securities and financial
instruments in which the Fund may invest.
    The Fund may use derivative instruments described above as a
substitute for investing directly in an underlying security or other
financial instrument, to seek to enhance returns, to seek to manage or
reduce exposure/risk, or to seek to manage foreign currency risk.
Non-Principal Investments
    While the Fund, under normal market conditions, will invest at
least 80% in the securities and financial instruments described above,
the Fund may invest its remaining assets in the securities and
financial instruments described below.
    The Fund may invest in exchange-traded funds (``ETFs'').\9\
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    \9\ For purposes of this filing, the term ``ETFs'' includes
Investment Company Units (as described in NYSE Arca Rule 5.2-
E(j)(3)); Portfolio Depositary Receipts (as described in NYSE Arca
Rule 8.100-E); and Managed Fund Shares (as described in NYSE Arca
Rule 8.600-E). All ETFs will be listed and traded in the U.S. on a
national securities exchange. While the Fund may invest in inverse
ETFs, the Fund will not invest in leveraged (e.g., 2X, -2X, 3X or -
3X) ETFs.
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    The Fund may invest in convertible bonds.
    In addition to U.S. government securities that are cash equivalents
as defined in Commentary .01(c) to NYSE Arca Rule 8.600-E, the Fund may
invest in other U.S. government securities, which are U.S. government
obligations such as U.S. Treasury notes, U.S. Treasury bonds, and U.S.
Treasury bills, obligations guaranteed by the U.S. government.
    The Fund will not invest in securities or other financial
instruments that have not been described in this proposed rule change.
Use of Derivatives by the Fund
    Investments in derivative instruments will be made in accordance
with the 1940 Act and consistent with the Fund's investment objective
and policies.
    To limit the potential risk associated with such transactions, the
Fund may enter into offsetting transactions or segregate or ``earmark''
assets determined to be liquid by the Adviser in accordance with
procedures established by the Trust's Board of Trustees (the ``Board'')
and in accordance with the 1940 Act or as permitted by applicable
Commission guidance. These procedures have been adopted consistent with
Section 18 of the 1940 Act and related Commission guidance. In
addition, the Fund has included appropriate risk disclosure in its
offering documents, including leveraging risk. Leveraging risk is the
risk that certain transactions of the Fund, including the Fund's use of
derivatives, may give rise to leverage, causing the Fund to be more
volatile than if it had not been leveraged.
Other Restrictions
    The Fund's investments, including derivatives, will be consistent
with the Fund's investment objective and will not be used to enhance
leverage (although certain derivatives and other investments may result
in leverage). That is, the Fund's investments will not be used to seek
performance that is the multiple or inverse multiple (e.g., 2X or -3X)
of the Fund's primary broad-based securities benchmark index (as
defined in Form N-1A).\10\
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    \10\ The Fund's broad-based securities benchmark index will be
identified in a future amendment to the Registration Statement
following the Fund's first full calendar year of performance.

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Impact on Arbitrage Mechanism
    The Adviser and the Sub-Adviser believe there will be minimal, if
any, impact to the arbitrage mechanism as a result of the Fund's use of
derivatives. The Adviser and the Sub-Adviser understand that market
makers and participants should be able to value derivatives as long as
the positions are disclosed with relevant information. The Adviser and
the Sub-Adviser believe that the price at which Shares of the Fund
trade will continue to be disciplined by arbitrage opportunities
created by the ability to purchase or redeem Shares of the Fund at
their net asset value (``NAV''), which should ensure that Shares of the
Fund will not trade at a material discount or premium in relation to
their NAV.
Creation of Creation Units
    The Trust issues and sells Shares of the Fund only in aggregations
of 50,000 Shares (each aggregation is called a ``Creation Unit'') on a
continuous basis through the Distributor at the NAV next determined
after receipt of an order in proper form on any Business Day.\11\ The
size of a Creation Unit is subject to change.
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    \11\ A ``Business Day'' with respect to the Fund is any day on
which the Exchange is open for business.
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    The consideration for a purchase of Creation Units generally will
consist of cash or an in-kind deposit of a portfolio of securities and
other investments (the ``Deposit Securities'') for each Creation Unit
constituting a substantial replication, or a representation, of the
securities included in the Fund's portfolio and an amount of cash
computed as described below (the ``Cash Amount''). The Cash Amount
together with the Deposit Securities, as applicable, are referred to as
the ``Fund Deposit,'' which represents the minimum initial and
subsequent investment amount for a Creation Unit of the Fund.
    The Cash Amount would be an amount equal to the difference between
the NAV of the Shares (per Creation Unit) and the ``Deposit Amount,''
which is an amount equal to the aggregate market value of the Deposit
Securities, and serves to compensate for any differences between the
NAV per Creation Unit and the Deposit Amount.
    The Fund, through the National Securities Clearing Corporation
(``NSCC''), makes available on each Business Day, immediately prior to
the opening of business on the Exchange (currently 9:30 a.m. E.T.), the
list of the names and the required number of securities for each
Deposit Security to be included in the current Fund Deposit (based on
information at the end of the previous Business Day) for the Fund. Such
Fund Deposit is applicable, subject to any adjustments as described
below, in order to effect creations of Creation Units of the Fund until
such time as the next-announced composition of the Deposit Securities
is made available.
    All orders to create Creation Units generally must be received by
the Distributor no later than 3:00 p.m. E.T. on the date such order is
placed in order for creation of Creation Units to be effected based on
the NAV of the Fund as determined on such date.
    In addition, the Trust reserves the right to permit the
substitution of an amount of cash (i.e., a ``cash in lieu'' amount) to
be added to the Cash Component to replace any Deposit Security which
may, among other reasons, not be available in sufficient quantity for
delivery, or which may not be eligible for transfer through the
Clearing Process (defined below), or which may not be eligible for
trading by a Participating Party (defined below).
    To be eligible to place orders with the Distributor to create
Creation Units of the Fund, an entity or person either must be (1) a
``Participating Party,'' i.e., a broker-dealer or other participant in
the clearing process through the Continuous Net Settlement System of
the NSCC (the ``Clearing Process''); or (2) a Depository Trust Company
(``DTC'') Participant; which, in either case, must have executed an
agreement with the Trust, the Distributor and the Transfer Agent
(``Participant Agreement''). A Participating Party and DTC Participant
are collectively referred to as an ``Authorized Participant.''
Redemption of Creation Units
    Shares may be redeemed only in Creation Units at their NAV next
determined after receipt of a redemption request in proper form by the
Distributor and only on a Business Day.
    The Trust, through NSCC, makes available immediately prior to the
opening of business on the Exchange (9:30 a.m. E.T.) on each Business
Day, the Deposit Securities that will be applicable (subject to
possible amendment or correction) to redemption requests received in
proper form on that day. The Fund's securities received on redemption
(``Redemption Instruments'') may not be identical to Deposit Securities
that are applicable to creations of Creation Units. Unless cash
redemptions are permitted or required for the Fund, the redemption
proceeds for a Creation Unit generally consist of Deposit Securities as
announced by the Trust on the Business Day of the request for
redemption, plus cash in an amount equal to the difference between the
NAV of the Shares being redeemed, as next determined after a receipt of
a request in proper form, and the value of the Deposit Securities, less
the redemption transaction fee.
    In order to redeem Creation Units of the Fund, an Authorized
Participant must submit an order to redeem for one or more Creation
Units. An order to redeem Creation Units of a Fund using the Clearing
Process generally must be received by the Trust not later than 3:00
p.m. E.T. on the Business Day of the request for redemption in order
for such order to be effected based on the NAV of the Fund as next
determined. An order to redeem Creation Units of the Fund using the
NSCC Clearing Process made in proper form but received by the Fund
after 3:00 p.m. E.T. will be deemed received on the next Business Day
immediately following the day on which such order request is
transmitted.
Application of Generic Listing Requirements
    The Exchange is submitting this proposed rule change because the
portfolio for the Fund will not meet all of the ``generic'' listing
requirements of Commentary .01 to NYSE Arca Rule 8.600-E applicable to
the listing of Managed Fund Shares. The Fund's portfolio will meet all
such requirements except for those set forth in Commentary .01(e), as
described below.
    The Fund will not comply with the requirements set forth in
Commentary .01(e) to NYSE Arca Rule 8.600-E with respect to the Fund's
investments in OTC derivatives.\12\ Specifically, the aggregate gross
notional value of the Fund's investments in OTC derivatives may exceed
20% of Fund assets, calculated as the aggregate gross notional value of
such OTC derivatives.\13\ The Exchange proposes that up to 50% of the
Fund's assets (calculated as the aggregate gross notional value) may be
invested in OTC

derivatives, that is, forwards and OTC options, that are used to reduce
currency, interest rate or credit risk arising from the Fund's
investments (that is, ``hedge''). The Fund's investments in OTC
derivatives, other than OTC derivatives used to hedge the Fund's
portfolio against currency, interest rate, or credit risk, will be
limited to 20% of the assets in the Fund's portfolio, calculated as the
aggregate gross notional value of such OTC derivatives.
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    \12\ Commentary .01(e) to NYSE Arca Rule 8.600-E provides that a
portfolio may hold OTC derivatives, including forwards, options and
swaps on commodities, currencies and financial instruments (e.g.,
stocks, fixed income, interest rates, and volatility) or a basket or
index of any of the foregoing; however, on both an initial and
continuing basis, no more than 20% of the assets in the portfolio
may be invested in OTC derivatives. For purposes of calculating this
limitation, a portfolio's investment in OTC derivatives will be
calculated as the aggregate gross notional value of the OTC
derivatives.
    \13\ The Adviser and Sub-Adviser monitor counterparty credit
risk exposure (including for OTC derivatives) and evaluate
counterparty credit quality on a continuous basis.
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    The Adviser and Sub-Adviser believe that it is important to provide
the Fund with additional flexibility to manage risk associated with its
investments. Depending on market conditions, it may be critical that
the Fund be able to utilize available OTC derivatives for this purpose
to attempt to reduce impact of currency, interest rate, or credit
fluctuations on Fund assets. OTC derivatives provide the Fund with
additional flexibility as well as a more precise means to effectively
attempt to reduce currency, interest rate, or credit fluctuations on
Fund assets. Generally, OTC derivatives can be customized to a greater
degree than exchange-traded derivatives and can provide a better hedge
on Fund assets, as well as allow for more control over the duration of
the hedge which can also mitigate trading costs. Therefore, in addition
to the Fund's ability to invest 20% of the assets in the Fund's
portfolio in OTC derivatives pursuant to NYSE Arca Rule 8.600-E,
Commentary .01(e), the Exchange believes it is appropriate to apply a
limit of up to 50% of the Fund's assets to the Fund's investments in
OTC derivatives (calculated as the aggregate gross notional value of
such OTC derivatives), including forwards and options, that are used
for hedging purposes, as described above.\14\
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    \14\ The Commission has previously approved an exception from
requirements set forth in Commentary .01(e) relating to investments
in OTC derivatives similar to those proposed with respect to the
Fund in Securities Exchange Act Release Nos. 80657 (May 11, 2017),
82 FR 22702 (May 17, 2017) (SR-NYSEArca-2017-09) (Notice of Filing
of Amendment No. 2 and Order Granting Accelerated Approval of a
Proposed Rule Change, as Modified by Amendment No. 2, Regarding
Investments of the Janus Short Duration Income ETF Listed Under NYSE
Arca Equities Rule 8.600). See also, Securities Exchange Act Release
Nos. 84047 (September 6, 2018), 83 FR 46200 (September 12, 2018)
(SR-NASDAQ-2017-128) (Notice of Filing of Amendment No. 3 and Order
Granting Accelerated Approval of a Proposed Rule Change, as Modified
by Amendment No. 3, to List and Trade Shares of the Western Asset
Total Return ETF), in which the Nasdaq Stock Market LLC proposed
that there would be no limit on the fund's investments in Interest
Rate and Currency Derivatives, and that the aggregate weight of all
OTC Derivatives other than Interest Rate and Currency Derivatives
will not exceed 10% of the fund's assets); 84818 (December 13,
2018), 83 FR 65189 (December 19, 2018) (SR-NYSEArca-2018-75) (Order
Approving a Proposed Rule Change, as Modified by Amendment No. 1
Thereto, Regarding the Listing and Trading of Shares of the PGIM
Ultra Short Bond ETF), note 13; 85022 (January 31, 2019), 84 FR 2265
(February 6, 2019) (SR-Nasdaq-2018-080) (Notice of Filing of
Amendment No. 3 and Order Granting Accelerated Approval of a
Proposed Rule Change to List and Trade Shares of the Brandywine
GLOBAL-Global Total Return ETF).
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    The Adviser and Sub-Adviser represent that deviations from the
generic requirements are necessary for the Fund to achieve its
investment objective in a manner that is cost-effective and that
maximizes investors' returns because OTC derivatives generally provide
the Fund with more flexibility to negotiate the exact exposure that the
Fund requires, and minimize trading costs because OTC derivatives are
not subject to costs of rolling that are associated with listed
derivatives.
    The Adviser and Sub-Adviser represent that they intend to engage in
strategies that utilize foreign currency forward transactions (which
may be traded OTC) and OTC options, as described above, based on its
investment strategies. Depending on market conditions, the exposure due
to these strategies may exceed 20% of the Fund's assets. The Adviser
represents further that the foreign exchange forward market is OTC,
and, as such, it is not possible to implement these strategies
efficiently using listed derivatives. In addition, use of OTC options
on U.S. and non-U.S. exchange-listed equity securities may be an
important means to reduce risk in the Fund's equity investments, or,
depending on market conditions, to enhance returns of such investments.
If the Fund were limited to investing up to 20% of assets in OTC
derivatives, the Fund would have to exclude or underweight these
strategies and would be less diversified, concentrating risk in the
other strategies it will utilize.
    In addition, by applying the 20% limitation in Commentary .01(e) to
Rule 8.600-E, the Fund would be less able to protect its holdings from
more than one risk simultaneously. For example, if the Fund's assets
(on a gross notional basis) were $100 million and the Fund held $20
million in Principal Investments with two types of risks (e.g.,
currency and credit risk) which could not be hedged using listed
derivatives, the Fund would be faced with the choice of either holding
$20 million aggregate gross notional value in OTC derivatives to
mitigate one of the risks while passing the other risk to its
shareholders, or, for example, holding $10 million aggregate gross
notional value in OTC derivatives on each of the risks while passing
the remaining portion of each risk to the Fund's shareholders.
    The Exchange notes that, other than Commentary .01(e), the Shares
of the Fund will conform to the initial and continued listing criteria
under NYSE Arca Rule 8.600-E and will meet all other requirements of
NYSE Arca Rule 8.600-E.
    The Adviser and Sub-Adviser represent that the proposed exception
described above is consistent with the Fund's investment objective, and
will further assist the Adviser and Sub-Adviser to achieve such
investment objective.
Availability of Information
    The Fund's website (www.virtusetfs.com) will include the prospectus
for the Fund that may be downloaded. The Fund's website will include
additional quantitative information updated on a daily basis including,
for the Fund, (1) the prior Business Day's NAV; (ii) the reported
midpoint of the bid-ask spread at the time of NAV calculation (the
``Bid-Ask Price''); \15\ (iii) a calculation of the premium or discount
of the Bid-Ask Price against such NAV; and (iv) data in chart format
displaying the frequency distribution of discounts and premiums of the
Bid-Ask Price against the NAV, within appropriate ranges, for each of
the four previous calendar quarters. On each Business Day, before
commencement of trading in Shares in the Core Trading Session on the
Exchange, the Fund will disclose on its website the Disclosed Portfolio
as defined in NYSE Arca Rule 8.600-E(c)(2) that forms the basis for the
Fund's calculation of NAV at the end of the Business Day.\16\
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    \15\ The Bid-Ask Price of the Fund's Shares 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 the Fund's NAV. The
records relating to Bid-Ask Prices will be retained by the Fund and
its service providers.
    \16\ Under accounting procedures followed by the Fund, trades
made on the prior Business Day (``T'') will be booked and reflected
in NAV on the current Business Day (``T+1''). Accordingly, the Fund
will be able to disclose at the beginning of the Business Day the
portfolio that will form the basis for the NAV calculation at the
end of the Business Day.
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    On a daily basis, the Fund will disclose the information required
under NYSE Arca Rule 8.600-E(c)(2) to the extent applicable. The
website information will be publicly available at no charge.
    In addition, a basket composition file, which includes the security
names and share quantities, if applicable, required to be delivered in
exchange for the Fund's Shares, together with estimates

and actual cash components, will be publicly disseminated daily prior
to the opening of the Exchange via the NSCC. The basket represents one
Creation Unit of the Fund. Authorized Participants may refer to the
basket composition file for information regarding any security, and any
other instrument that may comprise the Fund's basket on a given day.
    Investors can also obtain the Trust's Statement of Additional
Information (``SAI''), the Fund's Shareholder Reports, and the Fund's
Forms N-CSR and Forms N-SAR, filed twice a year. The Fund's SAI and
Shareholder Reports will be available free upon request from the Trust,
and those documents and the Form N-CSR, Form N-PX and Form N-SAR may be
viewed on-screen or downloaded from the Commission's website at
www.sec.gov.
    Intra-day and closing price information regarding U.S. and non-U.S.
exchange-traded options and futures will be available from the exchange
on which such instruments are traded. Price information relating to OTC
options will be available from major market data vendors. Intra-day
price information for U.S. and non-U.S. exchange-traded options on
futures will be available from the applicable exchange and from major
market data vendors. For U.S. and non-U.S. exchange-listed equity
securities, intraday price quotations will generally be available from
broker-dealers and trading platforms (as applicable). Price information
for cash equivalents and convertible bonds will be available from major
market data vendors. Price information regarding U.S. government
securities generally may be obtained from brokers and dealers who make
markets in such securities or through nationally recognized pricing
services through subscription agreements. Additionally, the Trade
Reporting and Compliance Engine (``TRACE'') of the Financial Industry
Regulatory Authority (``FINRA'') will be a source of price information
for certain fixed income securities to the extent transactions in such
securities are reported to TRACE.\17\
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    \17\ Broker-dealers that are FINRA member firms have an
obligation to report transactions in specified debt securities to
TRACE to the extent required under applicable FINRA rules.
Generally, such debt securities will have at issuance a maturity
that exceeds one calendar year. For fixed income securities that are
not reported to TRACE, (i) intraday price quotations will generally
be available from broker-dealers and trading platforms (as
applicable) and (ii) price information will be available from feeds
from market data vendors, published or other public sources, or
online information services, as described above.
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    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, ETFs, and other
U.S. exchange-traded equity securities will be available via the
Consolidated Tape Association (``CTA'') high-speed line. Exchange-
traded options quotation and last sale information for options cleared
via the Options Clearing Corporation (``OCC'') are available via the
Options Price Reporting Authority (``OPRA''). In addition, the
Portfolio Indicative Value (``PIV''), as defined in NYSE Arca Rule
8.600-E(c)(3), will be widely disseminated by one or more major market
data vendors at least every 15 seconds during the Core Trading Session.
Trading Halts
    With respect to trading halts, the Exchange may consider all
relevant factors in exercising its discretion to halt or suspend
trading in the Shares of the Fund. Trading in Shares of the Fund will
be halted if the circuit breaker parameters in NYSE Arca Rule 7.12-E
have been reached. Trading also may be halted because of market
conditions or for reasons that, in the view of the Exchange, make
trading in the Shares inadvisable. These may include: (1) The extent to
which trading is not occurring in the securities and/or the financial
instruments comprising the Disclosed Portfolio of the Fund; or (2)
whether other unusual conditions or circumstances detrimental to the
maintenance of a fair and orderly market are present. Trading in the
Shares will be subject to NYSE Arca Rule 8.600-E(d)(2)(D), which sets
forth circumstances under which Shares of the Fund may be halted.
Trading Rules
    The Exchange deems the Shares to be equity securities, thus
rendering trading in the Shares subject to the Exchange's existing
rules governing the trading of equity securities. 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 Rule 7.34-E (Trading Sessions). The Exchange
has appropriate rules to facilitate transactions in the Shares during
all trading sessions. As provided in NYSE Arca Rule 7.6-E, 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.
    With the exception of the requirements of Commentary .01(e) as
described above under ``Application of Generic Listing Requirements,''
the Shares of the Fund will conform to the initial and continued
listing criteria under NYSE Arca Rule 8.600-E. The Exchange represents
that for initial and/or continued listing, the Fund will be in
compliance with Rule 10A-3 under the Act, as provided by NYSE Arca Rule
5.3-E. A minimum of 100,000 Shares will be outstanding at the
commencement of trading on the Exchange. The Exchange has obtained 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.
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 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.
    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, certain
exchange-traded equity securities (including ETFs), certain exchange-
traded options and certain futures 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,
certain exchange-traded equity securities (including ETFs), certain
exchange-traded options and certain futures from such markets

and other entities. In addition, the Exchange may obtain information
regarding trading in the Shares, certain exchange-traded equity
securities (including ETFs), certain exchange-traded options and
certain futures from markets and other entities that are members of ISG
or with which the Exchange has in place a comprehensive surveillance
sharing agreement (``CSSA''). In addition, FINRA, on behalf of the
Exchange, is able to access, as needed, trade information for certain
fixed income securities held by the Fund reported to FINRA's TRACE.
    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
listing rules specified in this rule filing shall constitute continued
listing requirements for listing the Shares on the Exchange.
    The issuer has represented to the Exchange that it will advise the
Exchange of any failure by the Fund to comply with the continued
listing requirements, and, pursuant to its obligations under Section
19(g)(1) of the Act, the Exchange will monitor for compliance with the
continued listing requirements. If the Fund is not in compliance with
the applicable listing requirements, the Exchange will commence
delisting procedures under NYSE Arca Rule 5.5(m)-E.
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 of the Fund. 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 9.2-E(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 Early and Late Trading Sessions when an
updated PIV will not be calculated or publicly disseminated; (4) how
information regarding the PIV and the Disclosed Portfolio is
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 Fund is subject
to various fees and expenses described in the Registration Statement.
The Bulletin will discuss any exemptive, no-action, and interpretive
relief granted by the Commission from any rules under the Act. The
Bulletin will also disclose that the NAV for the Shares of the Fund
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) of the Act 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.
    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-E. 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
federal securities laws applicable to trading on the Exchange. The
Adviser and the Sub-Adviser are not registered as a broker-dealer but
both the Adviser and the Sub-Adviser are affiliated with a broker-
dealer and have implemented and will maintain a ``fire wall'' with
respect to such broker-dealer regarding access to information
concerning the composition and/or changes to the Fund's portfolio. The
Exchange or FINRA, on behalf of the Exchange, or both, will communicate
as needed regarding trading in the Shares, certain exchange-traded
options and certain futures 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, certain exchange-traded options and certain futures from
such markets and other entities. In addition, the Exchange may obtain
information regarding trading in the Shares, certain exchange-traded
options and certain futures from markets and other entities that are
members of ISG or with which the Exchange has in place a comprehensive
surveillance sharing agreement. In addition, FINRA, on behalf of the
Exchange, is able to access, as needed, trade information for certain
fixed income securities held by the Fund reported to FINRA's TRACE.
    The proposed rule change is designed to promote just and equitable
principles of trade and to protect investors and the public interest in
that the Exchange will obtain a representation from the issuer of the
Shares that the NAV per Share will be calculated daily and that the NAV
and the Disclosed Portfolio will be made available to all market
participants at the same time. In addition, a large amount of
information is publicly available regarding the Fund and the Shares,
thereby promoting market transparency. The website for the Fund
includes a form of the prospectus for the Fund and additional data
relating to NAV and other applicable quantitative information. Trading
in Shares of the Fund will be halted if the circuit breaker parameters
in NYSE Arca Equities Rule 7.12-E 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-E(d)(2)(D), which sets
forth circumstances under which trading in the Shares of the Fund may
be halted. In addition, as noted above, investors have ready access to
information regarding the Fund's holdings, the PIV, the Disclosed
Portfolio, and quotation and last sale information for the Shares.
    The Exchange believes that it is appropriate and in the public
interest to allow the Fund, for hedging purposes only, to exceed the
20% limit in Commentary .01(e) to Rule 8.600-E of portfolio assets that
may be invested in OTC derivatives to a maximum of 50% of Fund assets
(calculated as the gross notional value). As noted above, the Adviser
and Sub-Adviser believe that it is in the best interests of the Fund's
shareholders for the Fund to be allowed to reduce the currency,
interest rate, or credit risk arising from the Fund's investments using
the most efficient financial instruments. The proposed alternative
requirements are narrowly tailored to allow the Fund to achieve its
investment objective. In addition, the Fund's investments in OTC
derivatives, other than OTC derivatives used to hedge the Fund's
portfolio against currency, interest rate, or credit risk will be
limited to 20% of the assets in the Fund's portfolio, calculated as the
aggregate gross notional value of such OTC derivatives. While certain
risks can be hedged via listed derivatives, OTC derivatives (such as
forwards and options) can be customized to hedge

against precise risks. Accordingly, the Adviser and Sub-Adviser believe
that OTC derivatives may frequently be a more efficient hedging vehicle
than listed derivatives. Depending on market conditions, it may be
critical that the Fund be able to utilize available OTC derivatives for
this purpose to attempt to reduce impact of currency, interest rate, or
credit fluctuations on Fund assets. Therefore, the Exchange believes
that increasing the percentage limit in Commentary .01(e), as described
above, to the Fund's investments in OTC derivatives, including forwards
and options, that are used specifically for hedging purposes would
permit the Fund to satisfy its investment objective and reduce
investment risks in a more cost-effective manner and, therefore, would
help protect investors and the public interest.\18\
---------------------------------------------------------------------------

    \18\ The Exchange notes that the Commission has previously
approved listing and trading of Managed Fund Shares the investments
of which are similar to those proposed herein for the Fund. See,
e.g., Securities Exchange Act Release No. 82492 (January 12, 2018)
83 FR 2850 (January 19, 2018) (SR-NYSEArca-2017-87) (approving
listing of shares of the JP Morgan Long/Short ETF).
---------------------------------------------------------------------------

    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 continued listing and
trading of an actively-managed exchange-traded product that, through
permitted use of an increased level of OTC derivatives above than
currently permitted by the generic listing requirements of Commentary
.01 to NYSE Arca Rule 8.600-E, will enhance competition among market
participants, to the benefit of investors and the marketplace.
    The Exchange believes that it is appropriate and in the public
interest to allow the Fund, for hedging purposes only, to exceed the
20% limit in Commentary .01(e) to Rule 8.600-E of portfolio assets that
may be invested in OTC derivatives. Under Commentary .01(e), a series
of Managed Fund Shares listed under the ``generic'' standards may
invest up to 20% of its assets (calculated as the aggregate gross
notional value) in OTC derivatives. Because the Fund, in furtherance of
its investment objective, may invest a substantial percentage of its
investments in Principal Investments, the 20% limit in Commentary
.01(e) to Rule 8.600-E could result in the Fund being unable to fully
pursue its investment objective while attempting to sufficiently
mitigate investment risks. The inability of the Fund to adequately
hedge its holdings would effectively limit the Fund's ability to invest
in certain instruments, or could expose the Fund to additional
investment risk. For example, if the Fund's assets (on a gross notional
value basis) were $100 million and no listed derivative were suitable
to hedge the Fund's risk, under the generic standards the Fund would be
limited to holding up to $20 million gross notional value in OTC
derivatives ($100 million * 20%). Accordingly, the maximum amount the
Fund would be able to invest in Principal Investments while remaining
adequately hedged would be $20 million. The Fund then would hold $60
million in assets that could not be hedged, other than with listed
derivatives, which, as noted above, might not be sufficiently tailored
to the specific instruments to be hedged.\19\
---------------------------------------------------------------------------

    \19\ Implicit in expanding the ability of the Fund to enter into
OTC derivatives solely for hedging purposes is that OTC derivatives
will never be 100% of the Fund's portfolio because there will always
be an underlying asset that is being hedged.
---------------------------------------------------------------------------

    In addition, by applying the 20% limitation in Commentary .01(e) to
Rule 8.600-E, the Fund would be less able to protect its holdings from
more than one risk simultaneously. For example, if the Fund's assets
(on a gross notional basis) were $100 million and the Fund held $20
million in Principal Investments and Non-Principal Investments with two
types of risks (e.g., currency and credit risk) which could not be
hedged using listed derivatives, the Fund would be faced with the
choice of either holding $20 million aggregate gross notional value in
OTC derivatives to mitigate one of the risks while passing the other
risk to its shareholders, or, for example, holding $10 million
aggregate gross notional value in OTC derivatives on each of the risks
while passing the remaining portion of each risk to the Fund's
shareholders.

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

    The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purpose of the Act. The Exchange notes that the
proposed rule change will facilitate the listing and trading of an
issue of Managed Fund Shares that, through permitted use of an
increased level of OTC derivatives above that currently permitted by
the generic listing requirements of Commentary .01 to NYSE Arca
Equities Rule 8.600-E 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-2019-28 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-2019-28. 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 website (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 website 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. Persons submitting
comments are cautioned that we do not redact or edit personal
identifying information from comment submissions. You should submit
only information that you wish to make available publicly. All
submissions should refer to File Number SR-NYSEArca-2019-28 and should
be submitted on or before May 24, 2019.
---------------------------------------------------------------------------

    \20\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\20\
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019-09145 Filed 5-2-19; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 85, Number 138 (Friday, July 17, 2020)]
[Rules and Regulations]
[Pages 43425-43427]
[FR Doc No: 2020-15360]

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

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 71

[Docket No. FAA-2020-0321; Airspace Docket No. 20-AGL-17]
RIN 2120-AA66

Amendment of Class D and E Airspace and Establishment of Class E
Airspace; Alton/St. Louis, IL

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

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

SUMMARY: This action amends the Class D airspace and Class E airspace
area designated as an extension to a Class D surface area and
establishes Class E airspace extending upward from 700 feet above the
surface at St. Louis Regional Airport, Alton/St. Louis, IL. This action
is the result of an airspace review caused by the decommissioning of
the outer marker to runway 29 at St. Louis Regional Airport. The
geographic coordinates of the airport are also being updated to
coincide with the FAA's aeronautical database.

DATES: Effective 0901 UTC, November 5, 2020. The Director of the
Federal Register approves this incorporation by reference action under
Title 1 Code of Federal Regulations part 51, subject to the annual
revision of FAA Order 7400.11 and publication of conforming amendments.

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

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

SUPPLEMENTARY INFORMATION:

Authority for This Rulemaking

    The FAA's authority to issue rules regarding aviation safety is
found in Title 49 of the United States Code. Subtitle I, Section 106
describes the authority of the FAA Administrator. Subtitle VII,
Aviation Programs, describes in more detail the scope of the agency's
authority. This rulemaking is promulgated under the authority described
in Subtitle VII, Part A, Subpart I, Section 40103. Under that section,
the FAA is charged with prescribing regulations to assign the use of
airspace necessary to ensure the safety of aircraft and the efficient
use of airspace. This regulation is within the scope of that authority
as it amends the Class D airspace and Class E airspace area designated
as an extension to a Class D surface area and establishes Class E
airspace extending upward from 700 feet above the surface at St. Louis
Regional Airport, Alton/St. Louis, IL, to support instrument flight
rule operations at this airport.

History

    The FAA published a notice of proposed rulemaking in the Federal
Register (85 FR 27188; May 7, 2020) for Docket No. FAA-2020-0321 to
amend the Class D airspace and Class E airspace area designated as an
extension to a Class D surface area and establish Class E airspace
extending upward from 700 feet above the surface at St. Louis Regional
Airport, Alton/St. Louis, IL. Interested parties were invited to
participate in this rulemaking effort by submitting written comments on
the proposal to the FAA. No comments were received.
    Class D and E airspace designations are published in paragraph
5000, 6004, and 6005, respectively, of FAA Order 7400.11D, dated August
8, 2019, and effective September 15, 2019, which is incorporated by
reference in 14 CFR 71.1. The Class D and E airspace designations
listed in this document will be published subsequently in the Order.

Availability and Summary of Documents for Incorporation by Reference

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

The Rule

    This amendment to Title 14 Code of Federal Regulations (14 CFR)
part 71:
    Amends the Class D airspace at St. Louis Regional Airport, Alton/
St. Louis, IL, to within a 4.4-mile (increased from 4.2-mile) radius of
the airport; updates the header of the airspace legal description to
Alton/St. Louis, IL (previously Alton, IL) to coincide with the FAA's
aeronautical database; removes the city associated with the airport in
the airspace legal description to comply with changes to FAA Order
7400.2M, Procedures for Handling Airspace Matters; updates the
geographic coordinates of the airport to coincide with the FAA's
aeronautical database; updates the name of the St. Louis, MO, Class B
(previously Lambert-St. Louis International Airport, MO, Class B) to
coincide with FAA Order 7400.11D, Airspace Designations and Reporting
Points; and replaces the outdated term ``Airport/Facility Directory''
with ``Chart Supplement'';
    Amends the Class E airspace area designated as an extension to a
Class D surface area at St. Louis Regional Airport to within 2.5 miles
(decreased from 2.6 miles) each side of the 008[deg] (previously
012[deg]) bearing from the Civic Memorial NDB (previously St. Louis
Regional Airport) extending from the 4.4-mile (increased from 4.2-mile)
radius of St. Louis Regional Airport to 7 miles (increased from 6.1
miles) north of the Civic Memorial NDB (previously the airport);
updates the header of the airspace legal description to Alton/St.
Louis, IL (previously Alton, IL) to coincide with the FAA's
aeronautical database; removes the city associated with the airport in
the airspace legal description to comply with changes to FAA Order
7400.2M; updates the geographic coordinates of the airport to coincide
with the FAA's aeronautical database; and replaces the outdated term
``Airport/Facility Directory'' with ``Chart Supplement'';
    And establishes Class E airspace extending upward from 700 feet
above the surface within a 6.9-mile radius St. Louis Regional Airport;
and within 2.5 miles each side of the 008[deg] bearing from the Civic
Memorial NDB extending from the 6.9-mile radius of the airport to 7
miles north of the Civic Memorial NDB. (This airspace was previously
contained within the St. Louis, MO, Class E airspace extending upward
from 700 feet above the surface airspace legal description; however,
with this amendment, the airspace no longer adjoins, and a separate
airspace legal description is being established by this action.)
    This action is the result of an airspace review caused by the
decommissioning of the outer marker to runway 29 at St. Louis Regional
Airport which provided navigational information to this airport.
    FAA Order 7400.11, Airspace Designations and Reporting Points, is
published yearly and effective on September 15.

Regulatory Notices and Analyses

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

Environmental Review

    The FAA has determined that this action qualifies for categorical
exclusion under the National Environmental Policy Act in accordance
with FAA Order 1050.1F, ``Environmental Impacts: Policies and
Procedures,'' paragraph 5-6.5.a. This airspace action is not expected
to cause any potentially significant environmental impacts, and no
extraordinary circumstances exist that warrant preparation of an
environmental assessment.

Lists of Subjects in 14 CFR Part 71

    Airspace, Incorporation by reference, Navigation (air).

Adoption of the Amendment

    In consideration of the foregoing, the Federal Aviation
Administration amends 14 CFR part 71 as follows:

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

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

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

Sec.  71.1  [Amended]

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

Paragraph 5000 Class D Airspace.

* * * * *

AGL IL D Alton/St. Louis, IL [Amended]

St. Louis Regional Airport, IL
    (Lat. 38[deg]53'24'' N, long. 90[deg]02'46'' W)

    That airspace extending upward from the surface to and including
3,000 feet MSL within a 4.4-mile radius of the St. Louis Regional
Airport, excluding that airspace within the St. Louis, MO, Class B
airspace area. This Class D airspace area is effective during the
specific dates and times established in advance by a Notice to
Airmen. The effective date and time will thereafter be continuously
published in the Chart Supplement.

Paragraph 6004 Class E Airspace Areas Designated as an Extension to
a Class D or Class E Surface Area.

* * * * *

AGL IL E4 Alton/St. Louis, IL [Amended]

St. Louis Regional Airport, IL
    (Lat. 38[deg]53'24'' N, long. 90[deg]02'46'' W)
Civic Memorial NDB
    (Lat. 38[deg]53'32'' N, long. 90[deg]03'23'' W)

    That airspace extending upward from the surface within 2.5 miles
each side of the 008[deg] bearing from the Civic Memorial NDB
extending from the 4.4-mile radius of the St. Louis Regional Airport
to 7 miles north of the Civic Memorial NDB. This Class E airspace
area is effective during the specific dates and times established in
advance by a Notice to Airmen. The effective date and time will
thereafter be continuously published in the Chart Supplement.

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

* * * * *

AGL IL E5 Alton/St. Louis, IL [Establish]

St. Louis Regional Airport, IL
    (Lat. 38[deg]53'24'' N, long. 90[deg]02'46'' W)
Civic Memorial NDB
    (Lat. 38[deg]53'32'' N, long. 90[deg]03'23'' W)

    That airspace extending upward from 700 feet above the surface
within a 6.9-mile radius of St. Louis Regional Airport, and within
2.5 miles each side of the 008[deg] bearing from the Civic Memorial
NDB extending from the 6.9-mile radius of the airport to 7 miles
north of the Civic Memorial NDB.

    Issued in Fort Worth, Texas, on July 13, 2020.
Martin A. Skinner,
Acting Manager, Operations Support Group, ATO Central Service Center.
[FR Doc. 2020-15360 Filed 7-16-20; 8:45 am]
BILLING CODE 4910-13-P


           2015 Ozone Transport Oklahoma Tribal Consultation Meeting

Title:	2015 Ozone Transport overview
Date/Time: March 3[rd], 2022 @ 1:00 PM CDT
Agenda/Meeting Summary:
Background
	1. Signed a proposed disapproval on Jan 31, 2022
	2. OK and 18 other states SIPs are also proposed to be disapproved
	3. Public comment period goes until April 25
	4. Infrastructure SIP- tools to enforce the NAAQS
	5. Transport a component of Infrastructure SIPs. Transport component requires the air agency confirm emission from their jurisdiction are not
      a. contributing to Nonattainment in another state or;
      b. interfering with an area in another state's ability to maintain the standard
	6. Air agencies were to provide EPA with their evaluation that they have the tools to meet the standard and are not interfering with other areas meeting the standard by the fall of 2018.
	7. OK provided EPA such an evaluation Oct. 28, 2018.
	8. EPA took action on most of the components of this evaluation promptly but is just now taking action on the part of the evaluation where the state confirms that they are not transporting pollution to an area struggling to meet the standard.

Participants/Affiliations:
Name
Affiliation
Tabitha Langston
Ottawa Tribe of OK
Mack Peterson
Chickasaw Nation
Shawn Howard
Potawatomi Nation
James Williams
Muscogee Nation
Cheryl Stafford
Ottawa Tribe of OK
Lori Bailey
Ottawa Tribe of OK
Phillip Cravatt
Chickasaw Nation
Dejene Alemayehu
Kaw Nation
Jennifer Reyher
Muscogee Nation
Tye Baker
Choctaw Nation
Barbra Valdivieso

Tracie Horst
Choctaw Nation
Earl Barbry

Guy Donaldson
EPA
Randy Gee
EPA
Melanie Magee
EPA
Sherry Fuerst
EPA
Tina Alvarado
EPA


[Federal Register Volume 87, Number 56 (Wednesday, March 23, 2022)]
[Proposed Rules]
[Pages 16438-16439]
[FR Doc No: 2022-05786]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 71

[Docket No. FAA-2022-0229; Airspace Docket No. 22-ANE-2]
RIN 2120-AA66

Proposed Amendment of Class E Airspace; Rangeley, ME

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: This action proposes to amend Class E airspace extending
upward from 700 feet above the surface at Stephen A. Bean Municipal
Airport, Rangeley, ME, due to the decommissioning of the Rangeley non-
directional beacon (NDB) and cancellation of associated approaches, as
well as updating the airport's name and geographic coordinates.
Controlled airspace is necessary for the safety and management of
instrument flight rules (IFR) operations in the area.

DATES: Comments must be received on or before May 9, 2022.

ADDRESSES: Send comments on this proposal to: the U.S. Department of
Transportation, Docket Operations, 1200 New Jersey Avenue SE, West
Building Ground Floor, Room W12-140, Washington, DC 20590-0001;
Telephone:<PHONE_NUMBER>, or<PHONE_NUMBER>. You must identify the
Docket No. FAA-2022-0229; Airspace Docket No. 22-ANE-2 at the beginning
of your comments. You may also submit comments through the internet at
https://www.regulations.gov.
    FAA Order JO 7400.11F, Airspace Designations and Reporting Points,
and subsequent amendments can be viewed online at https://www.faa.gov/air_traffic/publications/. For further information, you can contact the
Airspace Policy Group, Federal Aviation Administration, 800
Independence Avenue SW, Washington, DC 20591; Telephone: (202) 267-
8783.

FOR FURTHER INFORMATION CONTACT: John Fornito, Operations Support
Group, Eastern Service Center, Federal Aviation Administration, 1701
Columbia Avenue, College Park, GA 30337; Telephone<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Authority for This Rulemaking

    The FAA's authority to issue rules regarding aviation safety is
found in Title 49 of the United States Code. Subtitle I, Section 106,
describes the authority of the FAA Administrator. Subtitle VII,
Aviation Programs, describes in more detail the scope of the agency's
authority. This rulemaking is promulgated under the authority described
in Subtitle VII, Part A, Subpart I, Section 40103. Under that section,
the FAA is charged with prescribing regulations to assign the use of
airspace necessary to ensure the safety of aircraft and the efficient
use of airspace. This regulation is within the scope of that authority,
as it would amend airspace in Rangeley, ME, to support IFR operations
in the area.

Comments Invited

    Interested persons are invited to comment on this proposed
rulemaking by submitting such written data, views, or arguments, as
they may desire. Comments that provide the factual basis supporting the
views and suggestions presented are particularly helpful in developing
reasoned regulatory decisions on the proposal. Comments are
specifically invited on the overall regulatory, aeronautical, economic,
environmental, and energy-related aspects of the proposal.
    Communications should identify both docket numbers (Docket No. FAA-
2021-0229 and Airspace Docket No. 22-ANE-2) and be submitted in
triplicate to DOT Docket Operations (see ADDRESSES section for the
address and phone number). You may also submit comments through the
internet at https://www.regulations.gov.
    Persons wishing the FAA to acknowledge receipt of their comments on
this action must submit with those comments a self-addressed stamped
postcard on which the following statement is made: ``Comments to FAA
Docket No. FAA-2021-0229; Airspace Docket No. 22-ANE-2.'' The postcard
will be date/time stamped and returned to the commenter.
    All communications received before the specified closing date for
comments will be considered before taking action on the proposed rule.
The proposal contained in this document may be changed in light of the
comments received. All comments submitted will be available for
examination in the public docket both before and after the comment
closing date. A report summarizing each substantive public contact with
FAA personnel concerned with this rulemaking will be filed in the
docket.

Availability of NPRMs

    An electronic copy of this document may be downloaded through the
internet at https://www.regulations.gov. Recently published rulemaking
documents can also be accessed through the FAA's web page at https://www.faa.gov/air_traffic/publications/airspace_amendments/.
    You may review the public docket containing the proposal, any
comments received and any final disposition in person in the Dockets
Office (see the ADDRESSES section for address and phone number) between
9:00 a.m. and 5:00 p.m., Monday through Friday, except federal
holidays. An informal docket may also be examined between 8:00 a.m. and
4:30 p.m., Monday through Friday, except federal holidays, at the
office of the Eastern Service Center, Federal Aviation Administration,
1701 Columbia Avenue, Room 350, College Park, GA 30337.

Availability and Summary of Documents for Incorporation by Reference

    This document proposes to amend FAA Order JO 7400.11F, Airspace
Designations and Reporting Points, dated August 10, 2021, and effective

September 15, 2021. FAA Order JO 7400.11F is publicly available as
listed in the ADDRESSES section of this document. FAA Order JO 7400.11F
lists Class A, B, C, D, and E airspace areas, air traffic service
routes, and reporting points.

The Proposal

    The FAA proposes an amendment to 14 CFR part 71 to amend Class E
airspace extending upward from 700 feet above the surface at Stephen A.
Bean Municipal Airport, Rangeley, ME, due to the decommissioning of the
Rangeley NDB and cancellation of associated approaches. This action
would increase the radius to 6.5 miles (previously 6.3 miles), and
eliminate the southwest extension. This action would also update the
airport's name to Stephen A. Bean Municipal Airport (formerly Rangeley
Municipal Airport), and update the airport's geographic coordinates to
coincide with the FAA's database.
    Class E airspace designations are published in Paragraph 6005 of
FAA Order JO 7400.11F, dated August 10, 2021, and effective September
15, 2021, which is incorporated by reference in 14 CFR 71.1. The Class
E airspace designations listed in this document will be published
subsequently in FAA Order JO 7400.11.
    FAA Order JO 7400.11, Airspace Designations and Reporting Points,
is published yearly and effective on September 15.

Regulatory Notices and Analyses

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

Environmental Review

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

Lists of Subjects in 14 CFR Part 71

    Airspace, Incorporation by reference, Navigation (air).

The Proposed Amendment

    In consideration of the foregoing, the Federal Aviation
Administration proposes to amend 14 CFR part 71 as follows:

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

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

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

Sec.  71.1   [Amended]

0
2. The incorporation by reference in 14 CFR 71.1 of Federal Aviation
Administration Order JO 7400.11F, Airspace Designations and Reporting
Points, dated August 10, 2021, and effective September 15, 2021, is
amended as follows:
* * * * *

ANE ME E5 Rangeley, ME [Amended]

Stephen A Bean Municipal Airport, ME
    (Lat. 44[deg]59'32'' N, long. 70[deg]39'54'' W)

    That airspace extending upward from 700 feet above the surface
within a 6.5-mile radius of Stephen A. Bean Municipal Airport.

    Issued in College Park, Georgia, on March 15, 2022.
Andreese C. Davis,
Manager, Airspace & Procedures Team South, Eastern Service Center, Air
Traffic Organization.
[FR Doc. 2022-05786 Filed 3-22-22; 8:45 am]
BILLING CODE 4910-13-P