[Federal Register: November 14, 2007 (Volume 72, Number 219)]
[Rules and Regulations]
[Page 63990-63992]
[DOCID:fr14no07-11]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52 and 81

[EPA-R03-OAR-2007-0533; FRL-8494-2]

Approval and Promulgation of Air Quality Implementation Plans;
Pennsylvania; Redesignation of the Centre County (State College) 8-Hour
Ozone Nonattainment Area to Attainment and Approval of the Area's
Maintenance Plan and 2002 Base Year Inventory

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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SUMMARY: EPA is approving a State Implementation Plan (SIP) revision
submitted by the Commonwealth of Pennsylvania. The Pennsylvania
Department of Environmental Protection (PADEP) is requesting that the
Centre County ozone nonattainment area (State College Area) be
redesignated as attainment for the 8-hour ozone ambient air quality
standard (NAAQS). EPA is approving the ozone redesignation request for
the State College Area. In conjunction with its redesignation request,
PADEP submitted a SIP revision consisting of a maintenance plan for the
State College Area that provides for continued attainment of the 8-hour
ozone NAAQS for at least 10 years after redesignation. EPA is approving
the 8-hour maintenance plan. PADEP also submitted a 2002 base year
inventory for the State College Area which EPA is approving. In
addition, EPA is approving the adequacy determination for the motor
vehicle emission budgets (MVEBs) that are identified in the State
College Area maintenance plan for purposes of transportation
conformity, and is approving those MVEBs. EPA is approving the
redesignation request, and the maintenance plan and the 2002 base year
emissions inventory as revisions to the Pennsylvania SIP in accordance
with the requirements of the Clean Air Act (CAA).

DATES: Effective Date: This final rule is effective on December 14,
2007.

ADDRESSES: EPA has established a docket for this action under Docket ID
Number EPA-R03-OAR-2007-0533. All documents in the docket are listed in
the http://www.regulations.gov Web site. Although listed in the electronic

docket, some information is not publicly available, i.e., confidential
business information (CBI) or other information whose disclosure is
restricted by statute. Certain other material, such as copyrighted
material, is not placed on the Internet and will be publicly available
only in hard copy form. Publicly available docket materials are
available either electronically through http://www.regulations.gov or in hard

copy for public inspection during normal business hours at the Air
Protection Division, U.S. Environmental Protection Agency, Region III,
1650 Arch Street, Philadelphia, Pennsylvania 19103. Copies of the State
submittal are available at the Pennsylvania Department of Environment
Protection, Bureau of Air Quality Control, P.O. Box 8468, 400 Market
Street, Harrisburg, Pennsylvania 17105.

FOR FURTHER INFORMATION CONTACT: Rose Quinto,<PHONE_NUMBER>, or by e-
mail at<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

I. Background

    On September 11, 2007 (72 FR 51747), EPA published a notice of
proposed rulemaking (NPR) for the Commonwealth of Pennsylvania. The NPR
proposed approval of Pennsylvania's redesignation request, a SIP
revision that establishes a maintenance plan for the State College Area
that provides for continued attainment of the 8-hour ozone NAAQS for at
least 10 years after redesignation, and a 2002 base year emissions
inventory. The formal SIP revisions were submitted by PADEP on June 12,
2007. Other specific requirements of Pennsylvania's redesignation
request SIP revision for the maintenance plan and the rationales for
EPA's proposed actions are explained in the NPR and will not be
restated here. No public comments were received on the NPR.
    However, on December 22, 2006, the U.S. Court of Appeals for the
District of Columbia Circuit vacated EPA's Phase 1 Implementation Rule
for the 8-hour Ozone Standard. (69 FR 23591, April 30, 2004). South
Coast Air Quality Management Dist. v. EPA, 472 F.3d 882 (D.C. Cir.
2006). On June 8, 2007, in South Coast Air Quality Management Dist. v.
EPA, Docket No. 04-1201, in response to several petitions for
rehearing, the D.C. Circuit clarified that the Phase 1 Rule was vacated
only with regard to those parts of the rule that had been successfully
challenged. Therefore, the Phase 1 Rule provisions related to
classifications for areas currently classified under subpart 2 of Title
I, part D of the Act as 8-hour nonattainment areas, the 8-hour
attainment dates and the timing for emissions reductions needed for
attainment of the 8-hour ozone NAAQS remain effective. The June 8
decision left intact the Court's rejection of EPA's reasons for
implementing the 8-hour standard in certain nonattainment areas under
subpart 1 in lieu of subpart 2. By limiting the vacatur, the Court let
stand EPA's revocation of the 1-hour standard and those anti-
backsliding provisions of the Phase 1 Rule that had not been
successfully challenged. The June 8 decision reaffirmed the December
22, 2006 decision that EPA had improperly failed to retain measures
required for 1-

hour nonattainment areas under the anti-backsliding provisions of the
regulations: (1) Nonattainment area New Source Review (NSR)
requirements based on an area's 1-hour nonattainment classification;
(2) Section 185 penalty fees for the 1-hour severe or extreme
nonattainment areas; and (3) measures to be implemented pursuant to
section 172(c)(9) or 182(c)(9) of the CAA, on the contingency of an
area not making reasonable further progress toward attainment of the 1-
hour NAAQS, or for failure to attain NAAQS. In addition, the June 8
decision clarified that the Court's reference to conformity
requirements for anti-backsliding purposes was limited to requiring the
continued use of the 1-hour motor vehicle emissions budgets until 8-
hour budgets were available for 8-hour conformity determinations, which
is already required under EPA's conformity regulations. The Court thus
clarified the 1-hour conformity determinations are not required for
anti-backsliding purposes.
    For the reasons set forth in the proposal, EPA does not believe
that the Court's rulings alter any requirements relevant to this
redesignation action so as to preclude redesignation, and do not
prevent EPA from finalizing this redesignation. EPA believes that the
Court's December 22, 2006 and June 8, 2007 decisions impose no
impediment to moving forward with redesignation of this area to
attainment, because even in the light of the Court's decisions,
redesignation is appropriate under the relevant redesignation
provisions of the CAA and longstanding policies regarding redesignation
requests.

II. Final Action

    EPA is approving the Commonwealth of Pennsylvania's redesignation
request, maintenance plan, and the 2002 base year emissions inventory
because the requirements for approval have been satisfied. EPA has
evaluated Pennsylvania's redesignation request that was submitted on
June 12, 2007 and determined that it meets the redesignation criteria
set forth in section 107(d)(3)(E) of the CAA. EPA believes that the
redesignation request and monitoring data demonstrate that the State
College Area has attained the 8-hour ozone standard. The final approval
of this redesignation request will change the designation of the State
College Area from nonattainment to attainment for the 8-hour ozone
standard. EPA is approving the maintenance plan for the State College
Area submitted on June 12, 2007 as a revision to the Pennsylvania SIP.
EPA is also approving the MVEBs submitted by PADEP in conjunction with
its redesignation request. In addition, EPA is approving the 2002 base
year emissions inventory submitted by PADEP on June 12, 2007 as a
revision to the Pennsylvania SIP. In this final rulemaking, EPA is
notifying the public that we have found that the MVEBs for
NOX and VOCs in the State College Area for the 8-hour ozone
maintenance plan are adequate and approved for conformity purposes. As
a result of our finding, the State College Area must use the MVEBs from
the submitted 8-hour ozone maintenance plan for future conformity
determinations. The adequate and approved MVEBs are provided in the
following table:

  Adequate and Approved Motor Vehicle Emissions Budgets in Tons per Day
                                  (TPD)
------------------------------------------------------------------------
                      Budget year                         NOX      VOC
------------------------------------------------------------------------
2009..................................................     12.5      5.4
2018..................................................      6.0      3.7
------------------------------------------------------------------------

    The State College Area is subject to the CAA's requirement for the
basic nonattainment areas until and unless it is redesignated to
attainment.

III. Statutory and Executive Order Reviews

A. General Requirements

    Under Executive Order 12866 (58 FR 51735, October 4, 1993), this
action is not a ``significant regulatory action'' and therefore is not
subject to review by the Office of Management and Budget. For this
reason, this action is also not subject to Executive Order 13211,
``Actions Concerning Regulations That Significantly Affect Energy
Supply, Distribution, or Use'' (66 FR 28355, May 22, 2001). This action
merely approves state law as meeting Federal requirements and imposes
no additional requirements beyond those imposed by state law.
Redesignation is an action that affects the status of a geographical
area and does not impose any new regulatory requirements on sources.
Accordingly, the Administrator certifies that this rule will not have a
significant economic impact on a substantial number of small entities
under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.). Because
this rule approves pre-existing requirements under state law and does
not impose any additional enforceable duty beyond that required by
state law, it does not contain any unfunded mandate or significantly or
uniquely affect small governments, as described in the Unfunded
Mandates Reform Act of 1995 (Public Law 104-4). This final rule also
does not have tribal implications because it will not have a
substantial direct effect on one or more Indian tribes, on the
relationship between the Federal Government and Indian tribes, or on
the distribution of power and responsibilities between the Federal
Government and Indian tribes, as specified by Executive Order 13175 (65
FR 67249, November 9, 2000). Because this action affects the status of
a geographical area, does not impose any new requirements on sources,
or allows the state to avoid adopting or implementing other
requirements, this action also does not have Federalism implications
because it does not have substantial direct effects on the States, on
the relationship between the national government and the States, or on
the distribution of power and responsibilities among the various levels
of government, as specified in Executive Order 13132 (64 FR 43255,
August 10, 1999). This action merely approves a state rule implementing
a Federal requirement, and does not alter the relationship or the
distribution of power and responsibilities established in the CAA. This
rule also is not subject to Executive Order 13045 ``Protection of
Children from Environmental Health Risks and Safety Risks'' (62 FR
19885, April 23, 1997), because it approves a state rule implementing a
Federal standard.
    In reviewing SIP submissions, EPA(s role is to approve state
choices, provided that they meet the criteria of the CAA. In this
context, in the absence of a prior existing requirement for the State
to use voluntary consensus standards (VCS), EPA has no authority to
disapprove a SIP submission for failure to use VCS. It would thus be
inconsistent with applicable law for EPA, when it reviews a SIP
submission, to use VCS in place of a SIP submission that otherwise
satisfies the provisions of the CAA. Redesignation is an action that
affects the status of a geographical area and does not impose any new
requirements on sources. Thus, the requirements of section 12(d) of the
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272
note) do not apply. This rule does not impose an information collection
burden under the provisions of the Paperwork Reduction Act of 1995 (44
U.S.C. 3501 et seq.).

B. Submission to Congress and the Comptroller General

    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the
Small Business Regulatory Enforcement Fairness Act of 1996, generally
provides that before a rule may take effect, the

agency promulgating the rule must submit a rule report, which includes
a copy of the rule, to each House of the Congress and to the
Comptroller General of the United States. EPA will submit a report
containing this rule and other required information to the U.S. Senate,
the U.S. House of Representatives, and the Comptroller General of the
United States prior to publication of the rule in the Federal Register.
This rule is not a ``major rule'' as defined by 5 U.S.C. 804(2).

C. Petitions for Judicial Review

    Under section 307(b)(1) of the CAA, petitions for judicial review
of this action must be filed in the United States Court of Appeals for
the appropriate circuit by January 14, 2008. Filing a petition for
reconsideration by the Administrator of this final rule does not affect
the finality of this rule for the purposes of judicial review nor does
it extend the time within which a petition for judicial review may be
filed, and shall not postpone the effectiveness of such rule or action.
This action, approving the redesignation of the State College Area to
attainment for the 8-hour ozone NAAQS, the associated maintenance plan,
the 2002 base year emission inventory, and the MVEBs identified in the
maintenance plan, may not be challenged later in proceedings to enforce
its requirements. (See section 307(b)(2).)

List of Subjects

40 CFR Part 52

    Environmental protection, Air pollution control, Nitrogen dioxide,
Ozone, Reporting and recordkeeping requirements, Volatile organic
compounds.

40 CFR Part 81

    Air pollution control, National parks, Wilderness areas.

    Dated: November 1, 2007.
Donald S. Welsh,
Regional Administrator, Region III.

0
40 CFR parts 52 and 81 are amended as follows:

PART 52--[AMENDED]

0
1. The authority citation for part 52 continues to read as follows:

    Authority: 42 U.S.C. 7401 et seq.

Subpart NN--Pennsylvania

0
2. In Sec.  52.2020, the table in paragraph (e)(1) is amended by adding
an entry at the end of the table to read as follows:

Sec.  52.2020  Identification of plan.

* * * * *
    (e) * * *
    (1) * * *

----------------------------------------------------------------------------------------------------------------
   Name of non-regulatory SIP         Applicable        State submittal                           Additional
            revision                geographic area          date          EPA approval date      explanation
----------------------------------------------------------------------------------------------------------------

                                                  * * * * * * *
8-Hour Ozone Maintenance Plan     State College       06/12/07..........  11/14/07 [Insert    ..................
 and 2002 Base Year Emissions      (Centre County).                        page number where
 Inventory.                                                                the document
                                                                           begins].
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* * * * *

PART 81--[AMENDED]

0
3. The authority citation for part 81 continues to read as follows:

    Authority: 42 U.S.C. 7401 et seq.

0
4. In Sec.  81.339, the table entitled ``Pennsylvania--Ozone (8-Hour
Standard)'' is amended by revising the entry for the State College, PA,
Centre County to read as follows:

Sec.  81.339  Pennsylvania.

* * * * *

                                      Pennsylvania--Ozone (8-Hour Standard)
----------------------------------------------------------------------------------------------------------------
                                             Designation \a\                      Category/classification
        Designated area         --------------------------------------------------------------------------------
                                    Date \1\               Type              Date \1\              Type
----------------------------------------------------------------------------------------------------------------

                                                  * * * * * * *
State College, PA: Centre              12/14/07  Attainment.
 County.

                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
\a\ Includes Indian County located in each county or area, except otherwise noted.
\1\ This date is June 15, 2004, unless otherwise noted.

* * * * *
[FR Doc. E7-22042 Filed 11-13-07; 8:45 am]

BILLING CODE 6560-50-P


[Federal Register Volume 84, Number 119 (Thursday, June 20, 2019)]
[Notices]
[Pages 28875-28878]
[FR Doc No: 2019-13069]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-86106; File No. SR-CboeBZX-2019-055]

Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change, as
Modified by Amendment No. 1, To Allow the Cambria Tail Risk ETF, a
Series of the Cambria ETF Trust, To Hold Listed Options Contracts in a
Manner That Does Not Comply With Rule 14.11(i), Managed Fund Shares

June 14, 2019.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on June 4, 2019, Cboe BZX Exchange, Inc. (``Exchange'' or ``BZX'')
filed with the Securities and Exchange Commission (``Commission'') a
proposed rule change as described in Items I and II below, which Items
have been prepared by the Exchange. On June 7, 2019, the Exchange filed
Amendment No. 1 to the proposed rule change.\3\ The Commission is
publishing this notice to solicit comments on the proposed rule, as
modified by Amendment No. 1, from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ In Amendment No. 1, the Exchange amended Item 2(a) of the
proposed rule change to state that ``The Exchange's President (or
designee) pursuant to delegated authority approved the proposed rule
change on June 3, 2019.''
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes a rule change to allow the Cambria Tail Risk
ETF (the ``Fund''), a series of the Cambria ETF Trust (the ``Trust''),
to hold listed options contracts in a manner that does not comply with
Rule 14.11(i) (``Managed Fund Shares''). The shares of the Fund are
referred to herein as the ``Shares.''
    The text of the proposed rule change is also available on the
Exchange's website (http://markets.cboe.com/us/equities/regulation/rule_filings/bzx/), at the Exchange's Office of the Secretary, and at
the Commission's Public Reference Room.

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

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

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

1. Purpose
    The Fund began listing and trading on the Exchange pursuant to the
generic listing standards under Rule 14.11(i) governing Managed Fund
Shares on April 6, 2017 and remains currently listed on the Exchange
pursuant to such rule.\4\ The Exchange proposes to continue listing and
trading the Shares. The Shares would continue to comply with all of the
generic listing standards with the exception of the requirement of Rule
14.11(i)(4)(C)(iv)(b) \5\ that prevents the aggregate gross notional
value of listed derivatives based on any single underlying reference
asset from exceeding 30% of the weight of the portfolio (including
gross notional exposures) and the aggregate gross notional value of
listed derivatives based on any five or fewer underlying reference
assets from exceeding 65% of the weight of the portfolio (including
gross notional exposures) (the ``Concentration Restriction'').\6\
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    \4\ The Commission originally approved BZX Rule 14.11(i) in
Securities Exchange Act Release No. 65225 (August 30, 2011), 76 FR
55148 (September 6, 2011) (SR-BATS-2011-018) and subsequently
approved generic listing standards for Managed Fund Shares under
Rule 14.11(i) in Securities Exchange Act Release No. 78396 (July 22,
2016), 81 FR 49698 (July 28, 2016) (SR-BATS-2015-100).
    \5\ Rule 14.11(i)(4)(C)(iv)(b) provides that ``the aggregate
gross notional value of listed derivatives based on any five or
fewer underlying reference assets shall not exceed 65% of the weight
of the portfolio (including gross notional exposures), and the
aggregate gross notional value of listed derivatives based on any
single underlying reference asset shall not exceed 30% of the weight
of the portfolio (including gross notional exposures).'' The
Exchange is proposing that the Fund be exempt from both the 30% and
65% requirements of Rule 14.11(i)(4)(C)(iv)(b).
    \6\ The Exchange notes that this proposal is very similar to
several previously submitted proposals to list and trade a series of
Index Fund Shares (which are referred to as Investment Company Units
under the rules of NYSE Arca, Inc.) and Managed Fund Shares with
exposures to a single underlying reference asset that were either
approved by the Commission or effective upon filing. See Securities
Exchange Act Release Nos. 83146 (May 1, 2018), 83 FR 20103 (May 7,
2018) (SR-CboeBZX-2018-029); 83679 (July 20, 2018), 83 FR 35505
(July 26, 2018); 77045 (February 3, 2016), 81 FR 6916 (February 9,
2016) (SR-NYSEArca-2015-113) (the ``Amendment''); and 74675 (April
8, 2015), 80 FR 20038 (April 14, 2015) (SR-NYSEArca-2015-05)
(collectively, with the Amendment, the ``Arca Filing'').
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    The Shares are offered by the Trust, a Delaware statutory trust
which is registered with the Commission as an open-end management
investment company.\7\ The Fund's adviser, Cambria Investment
Management, L.P. (the ``Adviser''), is not registered as a broker-
dealer, and is not affiliated with a broker-dealer. Personnel who make
decisions on the Fund's portfolio composition are currently and shall
continue to be subject to procedures designed to prevent the use and
dissemination of material non-public information regarding such
portfolio. In the event that (a) the 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, the Adviser or such new adviser or
sub-adviser will implement and maintain a fire wall with respect to its
relevant personnel or such broker-dealer affiliate, as applicable,
regarding access to information concerning the composition and/or
changes to the Fund's portfolio, and will be subject to procedures
designed to prevent the use and dissemination of material non-public
information regarding such portfolio.
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    \7\ The Trust is registered under the 1940 Act. The Trust filed
a supplement to the Fund's prospectus included in its Registration
Statement on May 9, 2019 (as supplemented, the ``Registration
Statement''). See Registration Statement on Form N-1A for the Trust
(File Nos. 333-180879 and 811-22704). The descriptions of the Fund
and the Shares contained herein are based, in part, on information
included in the Registration Statement. The Commission has issued an
order granting certain exemptive relief to the Trust and affiliated
persons under the Investment Company Act of 1940 (15 U.S.C. 80a-1).
See Investment Company Act Release No. 30340 (January 4, 2013) (File
No. 812-13959).
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    The Fund intends to qualify each year as a regulated investment
company under Subchapter M of the Internal Revenue Code of 1986, as
amended.
Cambria Tail Risk ETF
    The Fund seeks to provide income and capital appreciation from
investments in the U.S. market while protecting against significant
downside risk. In order to achieve its investment objective, under
Normal Market Conditions,\8\ the Fund invests in cash and U.S. Treasury
Bonds, and utilizes a put option strategy to manage the risk of

a significant negative movement in the value of domestic equities
(commonly referred to as tail risk) over rolling one-month periods.
Specifically, in order to hedge against sharp declines in the U.S.
stock market, each month, the Fund purchases U.S. exchange-listed
protective ``out of the money'' put options on the S&P 500 Index (``S&P
500 Options'').
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    \8\ The term ``Normal Market Conditions'' includes, but is not
limited to, the absence of trading halts in the applicable financial
markets generally; operational issues causing dissemination of
inaccurate market information or system failures; or force majeure
type events such as natural or man-made disaster, act of God, armed
conflict, act of terrorism, riot or labor disruption, or any similar
intervening circumstance.
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    The Fund's holdings currently meet and will continue to meet the
generic listing standards for fixed income securities under Rule
14.11(i)(4)(C)(ii) and cash and Cash Equivalents in Rule
14.11(i)(4)(C)(iii).\9\ The Fund has the ability to buy S&P 500
Options. The options strategy is actively managed by the Adviser and
will adapt to changing market environments and is currently not in
compliance with the requirement under Rule 14.11(i)(4)(C)(iv)(b) that
prevents the aggregate gross notional exposure of listed derivatives
based on any single underlying reference asset from exceeding 30% of
the weight of the portfolio (including gross notional exposures) and
the aggregate gross notional value of listed derivatives based on any
five or fewer underlying reference assets from exceeding 65% of the
weight of the portfolio (including gross notional exposures).\10\
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    \9\ The Exchange notes that certain of the Fund's holdings in
U.S. Treasury Bonds may qualify as Cash Equivalents by virtue of
their maturity, but the Adviser does not intend to invest in any
Cash Equivalents that are not U.S. Treasury Bonds. As defined in
Exchange Rule 14.11(i)(4)(C)(iii)(b), Cash Equivalents are short-
term instruments with maturities of less than three months, which
includes only the following: (i) U.S. Government securities,
including bills, notes, and bonds differing as to maturity and rates
of interest, which are either issued or guaranteed by the U.S.
Treasury or by U.S. Government agencies or instrumentalities; (ii)
certificates of deposit issued against funds deposited in a bank or
savings and loan association; (iii) bankers acceptances, which are
short-term credit instruments used to finance commercial
transactions; (iv) repurchase agreements and reverse repurchase
agreements; (v) bank time deposits, which are monies kept on deposit
with banks or savings and loan associations for a stated period of
time at a fixed rate of interest; (vi) commercial paper, which are
short-term unsecured promissory notes; and (vii) money market funds.
    \10\ Because the Fund is not in compliance with Rule
14.11(i)(4)(C)(iv)(b), the Exchange has commenced delisting
proceedings pursuant to Rule 14.12, including issuing a deficiency
notification.
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    As noted above, Rule 14.11(i)(4)(C)(iv)(b) prevents the Fund from
holding listed derivatives based on any single underlying reference
asset in excess of 30% of the weight of its portfolio (including gross
notional exposures) and the aggregate gross notional value of listed
derivatives based on any five or fewer underlying reference assets from
exceeding 65% of the weight of the portfolio (including gross notional
exposures). As proposed, the Fund could hold up to 90% of the weight of
its portfolio (including gross notional exposures) in S&P 500 Options
in a manner that may not comply with Rule 14.11(i)(4)(C)(iv)(b). The
put option strategy is designed to attempt to provide protection from
significant market declines on a month-by-month basis. This protection
comes in the form of S&P 500 Options. The Adviser generally intends to
re-initiate new S&P 500 Options positions that make up the put option
position each month and reinvest any gains from these activities into
U.S. Treasury Bonds. The Adviser also may, at its discretion, liquidate
and establish new S&P 500 Options positions intra-month, or liquidate
option positions without establishing new positions. The put option
strategy only includes S&P 500 Options. The ability to hold S&P 500
Options with exposure to a single reference asset up to 90% of the
weight of the portfolio (including gross notional exposures) would
allow the Fund the flexibility to fully implement its investment
strategy while remaining in compliance with the continued listing
standards.
    As noted above, the Fund invests only in cash, U.S. Treasury Bonds,
and S&P 500 Options. The Exchange represents that, except for the
Concentration Restriction in Rule 14.11(i)(4)(C)(iv)(b) with respect to
S&P 500 Options, the Fund's investments will continue to satisfy all of
the generic listing standards under BZX Rule 14.11(i)(4)(C) and all
other applicable requirements for Managed Fund Shares under Rule
14.11(i).
    The Trust is required to comply with Rule 10A-3 \11\ under the Act
for the initial and continued listing of the Shares of the Fund. In
addition, the Exchange represents that the Shares of the Fund will
continue to comply with all other requirements applicable to Managed
Fund Shares, which include the dissemination of key information such as
the Disclosed Portfolio,\12\ Net Asset Value,\13\ and the Intraday
Indicative Value,\14\ suspension of trading or removal,\15\ trading
halts,\16\ surveillance,\17\ minimum price variation for quoting and
order entry,\18\ the information circular,\19\ and firewalls \20\ as
set forth in Exchange rules applicable to Managed Fund Shares and the
orders approving such rules. Moreover, the S&P 500 Options held by the
Fund will trade on markets that are a member of Intermarket
Surveillance Group (``ISG'') or affiliated with a member of ISG or with
which the Exchange has in place a comprehensive surveillance sharing
agreement.\21\ All statements and representations made in this filing
regarding the description of the portfolio or reference assets,
limitations on portfolio holdings or reference assets, dissemination
and availability of reference asset and intraday indicative values (as
applicable), or the applicability of Exchange listing rules specified
in this filing shall constitute continued listing requirements for the
Shares. The Fund has represented to the Exchange that it will advise
the Exchange of any failure by the Fund or Shares to comply with the
continued listing requirements, and, pursuant to its obligations under
Section 19(g)(1) of the Act, the Exchange will surveil for compliance
with the continued listing requirements. FINRA conducts certain cross-
market surveillances on behalf of the Exchange pursuant to a regulatory
services agreement. The Exchange is responsible for FINRA's performance
under this regulatory services agreement. If the Fund is not in
compliance with the applicable listing requirements, the Exchange will
commence delisting procedures with respect to the Fund under Exchange
Rule 14.12.
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    \11\ 17 CFR 240.10A-3.
    \12\ See Rule 14.11(i)(4)(A)(ii) and 14.11(i)(4)(B)(ii).
    \13\ See Rule 14.11(i)(4)(A)(ii).
    \14\ See Rule 14.11(i)(4)(B)(i).
    \15\ See Rule 14.11(i)(4)(B)(iii).
    \16\ See Rule 14.11(i)(4)(B)(iv).
    \17\ See Rule 14.11(i)(2)(C).
    \18\ See Rule 14.11(i)(2)(B).
    \19\ See Rule 14.11(i)(6).
    \20\ See Rule 14.11(i)(7).
    \21\ For a list of the current members of ISG, see
www.isgportal.com. The Exchange notes that not all components of the
Disclosed Portfolio for the Fund may trade on markets that are
members of ISG or with which the Exchange has in place a
comprehensive surveillance sharing agreement.
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Availability of Information
    As noted above, the Fund will comply with the requirements under
the Rule 14.11(i) related to Disclosed Portfolio, NAV, and the Intraday
Indicative Value. Additionally, the intra-day, closing and settlement
prices of S&P 500 Options will be readily available from Cboe Exchange,
Inc. or online information services such as Bloomberg or Reuters.
Quotation and last sale information for S&P 500 Options will be
available via the Options Price Reporting Authority. Price information
for U.S. Treasury Bonds will be available from major market data
vendors. The Disclosed Portfolio will be available on the Fund's
website (www.cambriafunds.com) free of charge. The Fund's website will
include a form of the prospectus for the Fund and additional
information related to NAV and other applicable quantitative
information. Information

regarding market price and trading volume of the Shares will be
continuously available throughout the day on brokers' computer screens
and other electronic services. Information regarding the previous day's
closing price and trading volume for the Shares will be published daily
in the financial section of newspapers. Trading in the Shares may be
halted for market conditions or for reasons that, in the view of the
Exchange, make trading inadvisable. The Exchange deems the Shares to be
equity securities, thus rendering trading in the Shares subject to the
Exchange's existing rules governing the trading of equity securities.
The Exchange has appropriate rules to facilitate trading in the Shares
during all trading sessions. The Exchange prohibits the distribution of
material non-public information by its employees. Quotation and last
sale information for the Shares will be available via the CTA high-
speed line.
2. Statutory Basis
    The Exchange believes that the proposal is consistent with Section
6(b) of the Act \22\ in general and Section 6(b)(5) of the Act \23\ in
particular in that it is designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade, to foster cooperation and coordination with
persons engaged in facilitating transactions in securities, to remove
impediments to and perfect the mechanism of a free and open market and
a national market system and, in general, to protect investors and the
public interest in that the Shares will meet each of the continued
listing criteria in BZX Rule 14.11(i) with the exception of the
Concentration Restriction in Rule 14.11(i)(4)(C)(iv)(b), which requires
that the aggregate gross notional value of listed derivatives based on
any five or fewer underlying reference assets shall not exceed 65% of
the weight of the portfolio (including gross notional exposures), and
the aggregate gross notional value of listed derivatives based on any
single underlying reference asset shall not exceed 30% of the weight of
the portfolio (including gross notional exposures).\24\ The Exchange
believes that the diversity, liquidity, and market cap of the
securities underlying the S&P 500 Index are sufficient to protect
against market manipulation of both the Fund's holdings and the Shares
as it relates to the S&P 500 Options holdings. The Exchange also
believes that the liquidity in the S&P 500 Options market \25\
mitigates the concerns that Rule 14.11(i)(4)(C)(iv)(b) is intended to
address and that such liquidity would also act to prevent other S&P 500
Options from being susceptible to manipulation, and thus, make the
Shares less susceptible to manipulation. Further, allowing the Fund to
hold a greater portion of its portfolio in S&P 500 Options would mean
that the Fund would not be required to use over-the-counter (``OTC'')
derivatives if the Adviser deemed it necessary to get exposure in
excess of the Concentration Restriction in Rule 14.11(i)(4)(C)(iv)(b),
which would reduce the Fund's operational burden by allowing the Fund
to use listed options contracts to achieve its investment objective and
would eliminate the counter-party risk associated with holding OTC
derivative instruments.
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    \22\ 15 U.S.C. 78f(b).
    \23\ 15 U.S.C. 78f(b)(5).
    \24\ As noted above, the Exchange is proposing that the Fund be
exempt from the Concentration Restriction of Rule
14.11(i)(4)(C)(iv)(b) that prevents the aggregate gross notional
value of listed derivatives based on any five or fewer underlying
reference assets from exceeding 65% of the weight of the portfolio
(including gross notional exposures), and the aggregate gross
notional value of listed derivatives based on any single underlying
reference asset from exceeding 30% of the weight of the portfolio
(including gross notional exposures).'' The Exchange is proposing
that the Fund be exempt from both the 30% and 65% requirements of
Rule 14.11(i)(4)(C)(iv)(b).
    \25\ In 2018, more than 1.48 million S&P 500 Options contracts
were traded per day on Cboe Options, which is more than $350 billion
in notional volume traded on a daily basis.
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    The Exchange believes that its surveillance procedures are adequate
to properly monitor the trading of the Shares on the Exchange during
all trading sessions and to deter and detect violations of Exchange
rules and the applicable federal securities laws. The S&P 500 Options
held by the Fund will trade on markets that are a member of ISG or
affiliated with a member of ISG or with which the Exchange has in place
a comprehensive surveillance sharing agreement. The Exchange may obtain
information regarding trading in the Shares and the S&P 500 Options
held by the Fund via the ISG from other exchanges who are a member of
ISG or affiliated with a member of ISG or with which the Exchange has
entered into a comprehensive surveillance sharing agreement. The
Exchange further notes that the Fund will meet and be subject to all
other requirements of the generic listing rules and other applicable
continued listing requirements for Managed Fund Shares under Rule
14.11(i), including those requirements regarding the dissemination of
key information such as the Disclosed Portfolio, Net Asset Value, and
the Intraday Indicative Value, suspension of trading or removal,
trading halts, surveillance, minimum price variation for quoting and
order entry, the information circular, and firewalls as set forth in
Exchange rules applicable to Managed Fund Shares.
    For the above reasons, the Exchange believes that the proposed rule
change is consistent with the requirements of Section 6(b)(5) of the
Act.

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

    The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purpose of the Act. The Exchange notes that the
proposed rule change, rather, will facilitate the options strategy of
an actively-managed exchange-traded product that will allow the Fund to
better compete in the marketplace, thus enhancing competition among
both market participants and listing venues, to the benefit of
investors and the marketplace.

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

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

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

    Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6) thereunder.\26\
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    \26\ In addition, Rule 19b-4(f)(6)(iii) requires a self-
regulatory organization to give the Commission written notice of its
intent to file the proposed rule change at least five business days
prior to the date of filing of the proposed rule change, or such
shorter time as designated by the Commission. The Exchange has
satisfied this requirement.
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    A proposed rule change filed under Rule 19b-4(f)(6) \27\ normally
does not become operative for 30 days after the date of the filing.
However, pursuant to Rule 19b-4(f)(6)(iii),\28\ the Commission may
designate a shorter time if such action is consistent with the
protection of investors and the public interest. In its filing with the
Commission, the Exchange asked the Commission to

waive the 30-day operative delay to permit the Fund to immediately
employ an investment strategy that would allow the Fund to hold listed
derivatives based on a single underlying reference asset (i.e., S&P 500
Options) in a manner that may not comply with the generic listing
standards under Rule 14.11(i)(4)(C)(iv)(b). The Commission notes that
the proposed rule change in this regard is similar to previously
submitted proposals to list and trade series of Index Fund Shares and
Managed Fund Shares with exposure to a single underlying reference
asset (i.e., the S&P 500 Index) that were either approved by the
Commission or effective upon filing.\29\ Thus, the Commission believes
that waiver of the 30-day operative delay is consistent with the
protection of investors and the public interest and hereby waives the
30-day operative delay and designates the proposed rule change
operative upon filing.\30\
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    \27\ 17 CFR 240.19b-4(f)(6).
    \28\ 17 CFR 240.19b-4(f)(6)(iii).
    \29\ See supra note 6. In the approval order for proposed rule
change SR-CboeBZX-2018-029, the Commission noted that the proposing
exchange stated that ``SPX options are among the most liquid index
options in the U.S. and derive their value from the actively traded
S&P 500 components. SPX options are cash-settled with no delivery of
stocks or ETFs, and trade in competitive auction markets with price
and quote transparency. The Exchange believes that the highly
regulated S&P 500 options markets, and the broad base and scope of
the S&P 500 Index, make securities that derive their value from that
index, including S&P 500 options, less susceptible to potential
market manipulation in view of market capitalization and liquidity
of the S&P 500 Index components, price and quote transparency, and
arbitrage opportunities.'' See Securities Exchange Act Release No.
77045, supra note 6, 81 FR at 6917 n.15.
    \30\ For purposes only of waiving the operative delay, the
Commission has considered the proposed rule's impact on efficiency,
competition, and capital formation. See 15 U.S.C. 78c(f).
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    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.

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-CboeBZX-2019-055 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-CboeBZX-2019-055.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 such 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-CboeBZX-2019-055 and should be submitted
on or before July 11, 2019.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\31\
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    \31\ 17 CFR 200.30-3(a)(12).
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Vanessa A. Countryman,
Acting Secretary.
[FR Doc. 2019-13069 Filed 6-19-19; 8:45 am]
 BILLING CODE 8011-01-P