[Federal Register Volume 81, Number 5 (Friday, January 8, 2016)]
[Notices]
[Pages 978-986]
[FR Doc No: 2016-103]

=======================================================================
-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76817; File No. SR-NASDAQ-2015-161]

Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing of Proposed Rule Change Relating to the Listing and
Trading of the Shares of the First Trust RiverFront Dynamic Europe ETF,
First Trust RiverFront Dynamic Asia Pacific ETF, First Trust RiverFront
Dynamic Emerging Markets ETF, and the First Trust RiverFront Dynamic
Developed International ETF of First Trust Exchange-Traded Fund III

January 4, 2016.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on December 22, 2015, The NASDAQ Stock Market LLC (``Nasdaq'' 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 Nasdaq. The Commission
is publishing this notice to solicit comments on the proposed rule
change from interested persons.
---------------------------------------------------------------------------

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

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

    Nasdaq proposes to list and trade the shares of the following under
Nasdaq Rule 5735 (``Managed Fund Shares''): \3\ First Trust RiverFront
Dynamic Europe ETF (the ``Europe Fund''); First Trust RiverFront
Dynamic Asia Pacific ETF (the ``Asia Pacific Fund''); First Trust
RiverFront Dynamic Emerging Markets ETF (the ``Emerging Markets
Fund''); and First Trust RiverFront Dynamic Developed International ETF
(the ``Developed International Fund''). The Europe Fund, Asia Pacific
Fund, Emerging Markets Fund and Developed

International Fund are each a ``Fund'' and collectively, the ``Funds.''
Each Fund is a series of First Trust Exchange-Traded Fund III (the
``Trust''). The shares of each Fund are collectively referred to herein
as the ``Shares.''
---------------------------------------------------------------------------

    \3\ The Commission approved Nasdaq Rule 5735 in Securities
Exchange Act Release No. 57962 (June 13, 2008), 73 FR 35175 (June
20, 2008) (SR-NASDAQ-2008-039). There are already multiple actively
managed funds listed on the Exchange; see, e.g., Securities Exchange
Act Release Nos. 72506 (July 1, 2014), 79 FR 38631 (July 8, 2014)
(SR-NASDAQ-2014-050) (order approving listing and trading of First
Trust Strategic Income ETF); 69464 (April 26, 2013), 78 FR 25774
(May 2, 2013) (SR-NASDAQ-2013-036) (order approving listing and
trading of First Trust Senior Loan Fund); and 66489 (February 29,
2012), 77 FR 13379 (March 6, 2012) (SR-NASDAQ-2012-004) (order
approving listing and trading of WisdomTree Emerging Markets
Corporate Bond Fund). The Exchange believes the proposed rule change
raises no significant issues not previously addressed in those prior
Commission orders.
---------------------------------------------------------------------------

    The text of the proposed rule change is available at http://nasdaq.cchwallstreet.com/, at Nasdaq's principal office, and at the
Commission's Public Reference Room.

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

    In its filing with the Commission, Nasdaq included statements
concerning the purpose of, and basis for, the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. Nasdaq 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 the
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to list and trade the Shares of each Fund
under Nasdaq Rule 5735, which governs the listing and trading of
Managed Fund Shares \4\ on the Exchange. Each Fund will be an actively
managed exchange-traded fund (``ETF''). The Shares will be offered by
the Trust, which was established as a Massachusetts business trust on
January 9, 2008.\5\ The Trust is registered with the Commission as an
investment company and has filed a registration statement on Form N-1A
(``Registration Statement'') with the Commission.\6\ Each Fund will be
a series of the Trust.
---------------------------------------------------------------------------

    \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 Index Fund Shares, listed
and traded on the Exchange under Nasdaq Rule 5705, seeks to provide
investment results that correspond generally to the price and yield
performance of a specific foreign or domestic stock index, fixed
income securities index or combination thereof.
    \5\ The Commission has issued an order, upon which the Trust may
rely, granting certain exemptive relief under the 1940 Act. See
Investment Company Act Release No. 28468 (October 27, 2008) (File
No. 812-13477) (the ``Exemptive Relief'').
    \6\ See Post-Effective Amendment No. 29 to Registration
Statement on Form N-1A for the Trust, dated November 19, 2015 (File
Nos. 333-176976 and 811-22245). The descriptions of the Funds and
the Shares contained herein are based, in part, on information in
the Registration Statement.
---------------------------------------------------------------------------

    First Trust Advisors L.P. will be the investment adviser
(``Adviser'') to the Funds. RiverFront Investment Group, LLC will serve
as investment sub-adviser (``Sub-Adviser'') to the Funds and provide
day-to-day portfolio management. First Trust Portfolios L.P. (the
``Distributor'') will be the principal underwriter and distributor of
each Fund's Shares. Brown Brothers Harriman & Co. (``BBH'') will act as
the administrator, accounting agent, custodian and transfer agent to
the Funds.
    Paragraph (g) of Rule 5735 provides that if the investment adviser
to the investment company issuing Managed Fund Shares is affiliated
with a broker-dealer, such investment adviser shall erect a ``fire
wall'' between the investment adviser and the broker-dealer with
respect to access to information concerning the composition and/or
changes to such investment company portfolio.\7\ In addition, paragraph
(g) 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. Rule 5735(g) is similar to
Nasdaq Rule 5705(b)(5)(A)(i); however, paragraph (g) in connection with
the establishment of a ``fire wall'' between the investment adviser and
the broker-dealer reflects the applicable open-end fund's portfolio,
not an underlying benchmark index, as is the case with index-based
funds. Neither the Adviser nor the Sub-Adviser is a broker-dealer,
although the Adviser is affiliated with the Distributor, a broker-
dealer, and the Sub-Adviser is affiliated with Robert W. Baird & Co.
Incorporated, a broker-dealer, and each has implemented a fire wall
with respect to its respective broker-dealer affiliate regarding access
to information concerning the composition and/or changes to a
portfolio.
---------------------------------------------------------------------------

    \7\ An investment adviser to an open-end fund is required to be
registered under the Investment Advisers Act of 1940 (the ``Advisers
Act''). As a result, the Adviser, the Sub-Adviser and their related
personnel are subject to the provisions of Rule 204A-1 under the
Advisers Act relating to codes of ethics. This Rule requires
investment advisers to adopt a code of ethics that reflects the
fiduciary nature of the relationship to clients as well as
compliance with other applicable securities laws. Accordingly,
procedures designed to prevent the communication and misuse of non-
public information by an investment adviser must be consistent with
Rule 204A-1 under the Advisers Act. In addition, Rule 206(4)-7 under
the Advisers Act makes it unlawful for an investment adviser to
provide investment advice to clients unless such investment adviser
has (i) adopted and implemented written policies and procedures
reasonably designed to prevent violation, by the investment adviser
and its supervised persons, of the Advisers Act and the Commission
rules adopted thereunder; (ii) implemented, at a minimum, an annual
review regarding the adequacy of the policies and procedures
established pursuant to subparagraph (i) above and the effectiveness
of their implementation; and (iii) designated an individual (who is
a supervised person) responsible for administering the policies and
procedures adopted under subparagraph (i) above.
---------------------------------------------------------------------------

    In addition, personnel who make decisions on each Fund's portfolio
composition will be subject to procedures designed to prevent the use
and dissemination of material non-public information regarding such
Fund's portfolio. In the event (a) the Adviser or the Sub-Adviser
registers as a broker-dealer, or becomes newly affiliated with a
broker-dealer, or (b) any new adviser or sub-adviser is a registered
broker-dealer or becomes affiliated with another broker-dealer, it will
implement a fire wall with respect to its relevant personnel and/or
such broker-dealer affiliate, as applicable, regarding access to
information concerning the composition and/or changes to a portfolio
and will be subject to procedures designed to prevent the use and
dissemination of material non-public information regarding such
portfolio.
    Each Fund intends to qualify each year as a regulated investment
company under Subchapter M of the Internal Revenue Code of 1986, as
amended.
Principal Investment Strategies Applicable to Each Fund
    Each Fund's investment objective will be to provide capital
appreciation. Under normal market conditions,\8\ each Fund will seek to
achieve its investment objective by investing at least 80% of its net
assets (including investment borrowings) in a combination of (i)

``Principal Fund Equity Securities'' (as defined below), (ii) forward
currency contracts and non-deliverable forward currency contracts \9\
(collectively, ``Forward Contracts''), and (iii) currency transactions
on a spot (i.e., cash) basis.\10\
---------------------------------------------------------------------------

    \8\ The term ``under normal market conditions'' as used herein
includes, but is not limited to, the absence of adverse market,
economic, political or other conditions, including extreme
volatility or trading halts in the securities markets or the
financial markets generally; operational issues causing
dissemination of inaccurate market information; or force majeure
type events such as systems failure, natural or man-made disaster,
act of God, armed conflict, act of terrorism, riot or labor
disruption or any similar intervening circumstance. On a temporary
basis, including for defensive purposes, during the initial invest-
up period and during periods of high cash inflows or outflows, a
Fund may depart from its principal investment strategies; for
example, it may hold a higher than normal proportion of its assets
in cash. During such periods, a Fund may not be able to achieve its
investment objective. A Fund may adopt a defensive strategy when the
Adviser and/or the Sub-Adviser believes securities in which such
Fund normally invests have elevated risks due to political or
economic factors and in other extraordinary circumstances.
    \9\ A non-deliverable forward currency contract is a forward
currency contract where there is no physical settlement of the two
currencies at maturity. Instead, a net cash payment is made by one
party to another based on the movement of the two currencies.
    \10\ A Fund would enter into Forward Contracts and/or currency
spot transactions for hedging purposes.
---------------------------------------------------------------------------

    For each Fund, (a) ``Principal Equity Securities'' will consist of
the following U.S. and non-U.S. exchange-listed securities: (i) Common
stocks; (ii) common and preferred shares of real estate investment
trusts (``REITs''); \11\ and (iii) American Depositary Receipts
(``ADRs''), European Depositary Receipts (``EDRs''), and Global
Depositary Receipts (``GDRs'' and, together with ADRs and EDRs,
``Depositary Receipts'' \12\), and (b) ``Principal Fund Equity
Securities'' will consist of Principal Equity Securities that are
suggested by such Fund's name.\13\ Accordingly:
---------------------------------------------------------------------------

    \11\ A REIT is a company that owns and typically operates
income-producing real estate or related assets.
    \12\ Depositary Receipts are receipts, typically issued by a
bank or trust company, which evidence ownership of underlying
securities issued by a foreign entity. The Funds will not invest in
any unsponsored Depositary Receipts.
    \13\ For the avoidance of doubt, with respect to Depositary
Receipts, whether such Principal Equity Securities are Principal
Fund Equity Securities is based on the underlying securities, the
ownership of which is represented by the Depositary Receipts (i.e.,
whether, as described below, the relevant underlying security is a
security of a European company, an Asian Pacific company, an
emerging market company or a developed market company, as
applicable).
---------------------------------------------------------------------------

    (i) For the Europe Fund, Principal Fund Equity Securities will be
Principal Equity Securities of European companies; \14\
---------------------------------------------------------------------------

    \14\ European companies are those companies (i) whose securities
are traded principally on a stock exchange in a European country,
(ii) that are organized under the laws of or have a principal office
in a European country, or (iii) that have at least 50% of their
assets in, or derive at least 50% of their revenues or profits from,
a European country.
---------------------------------------------------------------------------

    (ii) for the Asia Pacific Fund, Principal Fund Equity Securities
will be Principal Equity Securities of Asian Pacific companies; \15\
---------------------------------------------------------------------------

    \15\ Asian Pacific companies are those companies (i) whose
securities are traded principally on a stock exchange in an Asian
Pacific country, (ii) that are organized under the laws of or have a
principal office in an Asian Pacific country, or (iii) that have at
least 50% of their assets in, or derive at least 50% of their
revenues or profits from, an Asian Pacific country.
---------------------------------------------------------------------------

    (iii) for the Emerging Markets Fund, Principal Fund Equity
Securities will be Principal Equity Securities of emerging market
companies; \16\ and
---------------------------------------------------------------------------

    \16\ An emerging market company is one (i) domiciled or with a
principal place of business or primary securities trading market in
an emerging market country, or (ii) that derives a substantial
portion of its total revenues or profits from emerging market
countries.
---------------------------------------------------------------------------

    (iv) for the Developed International Fund, Principal Fund Equity
Securities will be Principal Equity Securities of developed market
companies.\17\
---------------------------------------------------------------------------

    \17\ Developed market companies are those companies (i) whose
securities are traded principally on a stock exchange in a developed
market country, (ii) that are organized under the laws of or have a
principal office in a developed market country, or (iii) that have
at least 50% of their assets in, or derive at least 50% of their
revenues or profits from, a developed market country.
---------------------------------------------------------------------------

    In selecting securities for a Fund, the Sub-Adviser will score
individual securities from a portfolio of eligible securities according
to several core attributes, including, but not limited to, value,
quality and momentum, using multiple proprietary factors within each
core attribute.\18\ The Sub-Adviser will then rank each qualifying
security based on its core attribute score, and the highest scoring
securities will be considered for inclusion in the Fund's portfolio.
The Sub-Adviser will utilize its proprietary optimization process to
maximize the percentage of high-scoring securities included in each
Fund's portfolio.
---------------------------------------------------------------------------

    \18\ An example of a value factor would be price-to-book value
and an example of a quality factor would be cash as a percentage of
market capitalization.
---------------------------------------------------------------------------

    In addition, for each Fund, by entering into Forward Contracts and
currency spot transactions, the Sub-Adviser will deploy a dynamic
currency hedge (hedging up to 100% of such Fund's foreign currency
exposure) based on its proprietary hedging methodology. The Sub-
Adviser's hedging methodology will be constructed from a combination of
quantitative measures, such as interest-rate differentials, central
bank balance sheet expansion/contraction, and price momentum, and
qualitative measures, such as formal and informal guidance from central
bankers. Each Fund will only enter into transactions in Forward
Contracts with counterparties that the Adviser and/or the Sub-Adviser
reasonably believe are capable of performing under the applicable
Forward Contract.\19\
---------------------------------------------------------------------------

    \19\ Each Fund will seek, where possible, to use counterparties,
as applicable, whose financial status is such that the risk of
default is reduced; however, the risk of losses resulting from
default is still possible. The Adviser and/or the Sub-Adviser will
evaluate the creditworthiness of counterparties on an ongoing basis.
In addition to information provided by credit agencies, the
Adviser's and/or Sub-Adviser's analysis will evaluate each approved
counterparty using various methods of analysis and may consider the
Adviser's and/or Sub-Adviser's past experience with the
counterparty, its known disciplinary history and its share of market
participation.
---------------------------------------------------------------------------

Other Investments for the Funds
    Each Fund may invest (in the aggregate) up to 20% of its net assets
in the following securities and instruments:
    Each Fund may invest in the following U.S. and non-U.S. exchange-
listed securities (other than Principal Fund Equity Securities): (i)
Common stocks; (ii) common and preferred shares of REITs; (iii)
Depositary Receipts; and (iv) equity securities of business development
companies (``BDCs'') (collectively, ``Other Equity Securities'').\20\
---------------------------------------------------------------------------

    \20\ For each Fund, Other Equity Securities and Principal Fund
Equity Securities are referred to collectively as ``Equity
Securities.''
---------------------------------------------------------------------------

    Each Fund may invest in short-term debt securities and other short-
term debt instruments (described below), as well as cash equivalents,
or it may hold cash. The percentage of each Fund invested in such
holdings or held in cash will vary and will depend on several factors,
including market conditions. Each Fund may invest in the following
short-term debt instruments: \21\ (1) Fixed rate and floating rate 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; (2) certificates of deposit issued against funds
deposited in a bank or savings and loan association; (3) bankers'
acceptances, which are short-term credit instruments used to finance
commercial transactions; (4) repurchase agreements,\22\ which involve
purchases of debt securities; (5) 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; (6) commercial
paper, which is short-term unsecured

promissory notes; \23\ and (7) short-term debt obligations issued or
guaranteed by non-U.S. governments or by their agencies or
instrumentalities.
---------------------------------------------------------------------------

    \21\ Short-term debt instruments will be issued by issuers
having a long-term debt rating of at least A by Standard & Poor's
Ratings Services, a Division of The McGraw-Hill Companies, Inc.
(``S&P Ratings''), Moody's Investors Service, Inc. (``Moody's'') or
Fitch Ratings (``Fitch'') and have a maturity of one year or less.
    \22\ Each Fund intends to enter into repurchase agreements only
with financial institutions and dealers believed by the Adviser and/
or the Sub-Adviser to present minimal credit risks in accordance
with criteria approved by the Board of Trustees of the Trust
(``Trust Board''). The Adviser and/or the Sub-Adviser will review
and monitor the creditworthiness of such institutions. The Adviser
and/or the Sub-Adviser will monitor the value of the collateral at
the time the transaction is entered into and at all times during the
term of the repurchase agreement. The Funds will not enter into
reverse repurchase agreements.
    \23\ Each Fund may only invest in commercial paper rated A-1 or
higher by S&P Ratings, Prime-1 or higher by Moody's or F1 or higher
by Fitch.
---------------------------------------------------------------------------

    Each Fund may invest (but only up to 5% of its net assets) in
exchange-listed equity index futures contracts.
The Funds' Equity Securities
    Under normal market conditions, each Fund will invest in at least
20 Equity Securities. Each Fund will satisfy the ``ISG Criteria'' (as
described below) and/or the ``Alternative Criteria'' (as described
below).
    A Fund will satisfy the ISG Criteria if at least 90% of such Fund's
net assets that are invested (in the aggregate) in Equity Securities
will be invested in Equity Securities that trade in markets that are
members of the Intermarket Surveillance Group (``ISG'') \24\ or are
parties to a comprehensive surveillance sharing agreement with the
Exchange.
---------------------------------------------------------------------------

    \24\ See note 41, infra.
---------------------------------------------------------------------------

    A Fund will satisfy the Alternative Criteria if, under normal
market conditions, its Equity Securities meet the following criteria at
the time of purchase: (1) Non-U.S. Equity Securities \25\ each shall
have a minimum market value of at least $100 million; (2) non-U.S.
Equity Securities each shall have a minimum global monthly trading
volume of 250,000 shares, or minimum global notional volume traded per
month of $25,000,000, averaged over the last six months; (3) the most
heavily weighted non-U.S. Equity Security shall not exceed 25% of the
weight of the Fund's entire portfolio and, to the extent applicable,
the five most heavily weighted non-U.S. Equity Securities shall not
exceed 60% of the weight of the Fund's entire portfolio; (4) each non-
U.S. Equity Security shall be listed and traded on an exchange that has
last-sale reporting; and (5) all of such Fund's net assets that are
invested (in the aggregate) in Equity Securities other than non-U.S.
Equity Securities shall be invested in Equity Securities that trade in
markets that are members of ISG or are parties to a comprehensive
surveillance sharing agreement with the Exchange.\26\
---------------------------------------------------------------------------

    \25\ For purposes of this filing, the term ``non-U.S. Equity
Securities'' means Equity Securities that are not listed on a U.S.
exchange.
    \26\ Criteria (1) through (4) are similar to certain ``generic''
listing criteria in Nasdaq Rule 5705(b)(3)(A)(ii), which relate to
criteria applicable to an index or portfolio of (a) non-U.S. stocks
or (b) both U.S. and non-U.S. stocks underlying a series of Index
Fund Shares to be listed and traded on the Exchange pursuant to Rule
19b-4(e) under the Act. In addition, the Commission recently issued
an order approving a proposed rule change relating to the listing
and trading under NYSE Arca Equities Rule 8.600 based, in part, on a
representation that the non-U.S. equity securities in the applicable
ETF's portfolio would meet criteria similar to certain ``generic''
listing criteria in NYSE Arca Equities Rule 5.2(j)(3), Commentary
.01(a)(B), which relate to criteria applicable to an index or
portfolio of (a) non-U.S. stocks or (b) both U.S. and non-U.S.
stocks underlying a series of Investment Company Units to be listed
and traded on NYSE Arca, Inc. pursuant to Rule 19b-4(e) under the
Act. See Securities Exchange Act Release No. 75023 (May 21, 2015),
80 FR 30519 (May 28, 2015) (SR-NYSEArca-2014-100) (order approving
listing and trading of SPDR SSgA Global Managed Volatility ETF).
---------------------------------------------------------------------------

The Funds' Transactions in Forward Contracts and Exchange-Listed Equity
Index Futures Contracts
    Each Fund's transactions in Forward Contracts and exchange-listed
equity index futures contracts will be consistent with its investment
objective and the 1940 Act and will not be used to seek to achieve a
multiple or inverse multiple of an index. Each Fund will comply with
the regulatory requirements of the Commission with respect to coverage
in connection with its transactions in Forward Contracts and exchange-
listed equity index futures contracts. If the applicable guidelines
prescribed under the 1940 Act so require, a Fund will earmark cash,
U.S. government securities and/or other liquid assets permitted by the
Commission in the amount prescribed.\27\
---------------------------------------------------------------------------

    \27\ With respect to guidance under the 1940 Act, see 15 U.S.C.
80a-18; Investment Company Act Release No. 10666 (April 18, 1979),
44 FR 25128 (April 27, 1979); Dreyfus Strategic Investing,
Commission No-Action Letter (June 22, 1987); Merrill Lynch Asset
Management, L.P., Commission No-Action Letter (July 2, 1996).
---------------------------------------------------------------------------

Investment Restrictions
    Each Fund may hold up to an aggregate amount of 15% of its net
assets in illiquid assets (calculated at the time of investment),
deemed illiquid by the Adviser and/or the Sub-Adviser.\28\ Each Fund
will monitor its portfolio liquidity on an ongoing basis to determine
whether, in light of current circumstances, an adequate level of
liquidity is being maintained, and will consider taking appropriate
steps in order to maintain adequate liquidity if, through a change in
values, net assets, or other circumstances, more than 15% of such
Fund's net assets are held in illiquid assets. Illiquid assets include
securities subject to contractual or other restrictions on resale and
other instruments that lack readily available markets as determined in
accordance with Commission staff guidance.\29\
---------------------------------------------------------------------------

    \28\ In reaching liquidity decisions, the Adviser and/or the
Sub-Adviser may consider the following factors: The frequency of
trades and quotes for the security or other instrument; the number
of dealers wishing to purchase or sell the security or other
instrument and the number of other potential purchasers; dealer
undertakings to make a market in the security or other instrument;
and the nature of the security or other instrument and the nature of
the marketplace in which it trades (e.g., the time needed to dispose
of the security or other instrument, the method of soliciting offers
and the mechanics of transfer).
    \29\ The Commission has stated that long-standing Commission
guidelines have required open-end funds to hold no more than 15% of
their net assets in illiquid securities and other illiquid assets.
See Investment Company Act Release No. 28193 (March 11, 2008), 73 FR
14618 (March 18, 2008), footnote 34. See also Investment Company Act
Release No. 5847 (October 21, 1969), 35 FR 19989 (December 31, 1970)
(Statement Regarding ``Restricted Securities''); Investment Company
Act Release No. 18612 (March 12, 1992), 57 FR 9828 (March 20, 1992)
(Revisions of Guidelines to Form N-1A). A fund's portfolio security
is illiquid if it cannot be disposed of in the ordinary course of
business within seven days at approximately the value ascribed to it
by the fund. See Investment Company Act Release No. 14983 (March 12,
1986), 51 FR 9773 (March 21, 1986) (adopting amendments to Rule 2a-7
under the 1940 Act); Investment Company Act Release No. 17452 (April
23, 1990), 55 FR 17933 (April 30, 1990) (adopting Rule 144A under
the Securities Act of 1933).
---------------------------------------------------------------------------

    The Funds may not invest 25% or more of the value of their
respective total assets in securities of issuers in any one industry.
This restriction does not apply to (a) obligations issued or guaranteed
by the U.S. government, its agencies or instrumentalities or (b)
securities of other investment companies.\30\
---------------------------------------------------------------------------

    \30\ See Form N-1A, Item 9. The Commission has taken the
position that a fund is concentrated if it invests more than 25% of
the value of its total assets in any one industry. See, e.g.,
Investment Company Act Release No. 9011 (October 30, 1975), 40 FR
54241 (November 21, 1975).
---------------------------------------------------------------------------

Creation and Redemption of Shares
    Each Fund will issue and redeem Shares on a continuous basis at net
asset value (``NAV'') \31\ only in large blocks of Shares (``Creation
Units'') in transactions with authorized participants, generally
including broker-dealers and large institutional investors
(``Authorized Participants''). Creation Units generally will consist of
50,000 Shares, although this may change from time to time. Creation
Units, however, are not expected to consist of less than 50,000 Shares.
The Fund will issue and redeem Creation Units in exchange for an in-
kind portfolio of securities and/or cash in lieu of such securities
(the ``Creation Basket'').\32\ In addition, if

there is a difference between the NAV attributable to a Creation Unit
and the market value of the Creation Basket exchanged for the Creation
Unit, the party conveying securities with the lower value will pay to
the other an amount in cash equal to the difference (referred to as the
``Cash Component'').
---------------------------------------------------------------------------

    \31\ The NAV of each Fund's Shares generally will be calculated
once daily Monday through Friday as of the close of regular trading
on the New York Stock Exchange (``NYSE''), generally 4:00 p.m.,
Eastern Time (the ``NAV Calculation Time''). NAV per Share will be
calculated by dividing a Fund's net assets by the number of Fund
Shares outstanding.
    \32\ It is expected that each Fund will typically issue and
redeem Creation Units on an in-kind basis; however, subject to, and
in accordance with, the provisions of the Exemptive Relief, a Fund
may, at times, issue and redeem Creation Units on a cash (or
partially cash) basis.
---------------------------------------------------------------------------

    Creations and redemptions must be made by or through an Authorized
Participant that has executed an agreement that has been agreed to by
the Distributor and BBH with respect to creations and redemptions of
Creation Units. All standard orders to create Creation Units must be
received by the transfer agent no later than the closing time of the
regular trading session on the NYSE (ordinarily 4:00 p.m., Eastern
Time) (the ``Closing Time'') in each case on the date such order is
placed in order for the creation of Creation Units to be effected based
on the NAV of Shares as next determined on such date after receipt of
the order in proper form. Shares may be redeemed only in Creation Units
at their NAV next determined after receipt not later than the Closing
Time of a redemption request in proper form by a Fund through the
transfer agent and only on a business day.
    The Funds' custodian, through the National Securities Clearing
Corporation, will make available on each business day, prior to the
opening of business of the Exchange, the list of the names and
quantities of the securities comprising the Creation Basket, as well as
the estimated Cash Component (if any), for that day. The published
Creation Basket will apply until a new Creation Basket is announced on
the following business day prior to commencement of trading in the
Shares.
Net Asset Value
    Each Fund's NAV will be determined as of the close of regular
trading on the NYSE on each day the NYSE is open for trading. If the
NYSE closes early on a valuation day, the NAV will be determined as of
that time. NAV per Share will be calculated for each Fund by taking the
value of such Fund's total assets, including interest or dividends
accrued but not yet collected, less all liabilities, including accrued
expenses and dividends declared but unpaid, and dividing such amount by
the total number of Shares outstanding. The result, rounded to the
nearest cent, will be the NAV per Share. All valuations will be subject
to review by the Trust Board or its delegate.
    The Funds' investments will be valued daily. As described more
specifically below, investments traded on an exchange (i.e., a
regulated market), will generally be valued at market value prices that
represent last sale or official closing prices. In addition, as
described more specifically below, non-exchange traded investments will
generally be valued using prices obtained from third-party pricing
services (each, a ``Pricing Service'').\33\ If, however, valuations for
any of the Funds' investments cannot be readily obtained as provided in
the preceding manner, or the Pricing Committee of the Adviser (the
``Pricing Committee'') \34\ questions the accuracy or reliability of
valuations that are so obtained, such investments will be valued at
fair value, as determined by the Pricing Committee, in accordance with
valuation procedures (which may be revised from time to time) adopted
by the Trust Board (the ``Valuation Procedures''), and in accordance
with provisions of the 1940 Act. The Pricing Committee's fair value
determinations may require subjective judgments about the value of an
investment. The fair valuations attempt to estimate the value at which
an investment could be sold at the time of pricing, although actual
sales could result in price differences, which could be material.
Valuing the Fund's investments using fair value pricing can result in
using prices for those investments (particularly investments that trade
in foreign markets) that may differ from current market valuations.
---------------------------------------------------------------------------

    \33\ The Adviser may use various Pricing Services or discontinue
the use of any Pricing Services, as approved by the Trust Board from
time to time.
    \34\ The Pricing Committee will be subject to procedures
designed to prevent the use and dissemination of material non-public
information regarding each Fund's portfolio.
---------------------------------------------------------------------------

    Certain securities in which a Fund may invest will not be listed on
any securities exchange or board of trade. Such securities will
typically be bought and sold by institutional investors in individually
negotiated private transactions that function in many respects like an
over-the-counter secondary market, although typically no formal market
makers will exist. Certain securities, particularly debt securities,
will have few or no trades, or trade infrequently, and information
regarding a specific security may not be widely available or may be
incomplete. Accordingly, determinations of the value of debt securities
may be based on infrequent and dated information. Because there is less
reliable, objective data available, elements of judgment may play a
greater role in valuation of debt securities than for other types of
securities.
    The information summarized below is based on the Valuation
Procedures as currently in effect; however, as noted above, the
Valuation Procedures are amended from time to time and, therefore, such
information is subject to change.
    The following investments will typically be valued using
information provided by a Pricing Service: (a) Except as provided
below, short-term U.S. government securities, commercial paper,
bankers' acceptances and short-term debt obligations issued or
guaranteed by non-U.S. governments or by their agencies or
instrumentalities, all as set forth under ``Other Investments for the
Funds'' (collectively, ``Short-Term Debt Instruments'') and (b)
currency spot transactions. Debt instruments may be valued at evaluated
mean prices, as provided by Pricing Services. Pricing Services
typically value non-exchange-traded instruments utilizing a range of
market-based inputs and assumptions, including readily available market
quotations obtained from broker-dealers making markets in such
instruments, cash flows, and transactions for comparable instruments.
In pricing certain instruments, the Pricing Services may consider
information about an instrument's issuer or market activity provided by
the Adviser and/or the Sub-Adviser.
    Short-Term Debt Instruments having a remaining maturity of 60 days
or less when purchased will typically be valued at cost adjusted for
amortization of premiums and accretion of discounts, provided the
Pricing Committee has determined that the use of amortized cost is an
appropriate reflection of value given market and issuer-specific
conditions existing at the time of the determination.
    Repurchase agreements will typically be valued as follows:
    Overnight repurchase agreements will be valued at amortized cost
when it represents the best estimate of value. Term repurchase
agreements (i.e., those whose maturity exceeds seven days) will be
valued at the average of the bid quotations obtained daily from at
least two recognized dealers.
    Certificates of deposit and bank time deposits will typically be
valued at cost.
    Equity Securities that are listed on any exchange other than the
Exchange and the London Stock Exchange Alternative Investment Market
(``AIM'') will typically be valued at the last sale price on the
exchange on which they are principally traded on the business day as of
which such value is being

determined. Equity Securities listed on the Exchange or the AIM will
typically be valued at the official closing price on the business day
as of which such value is being determined. If there has been no sale
on such day, or no official closing price in the case of securities
traded on the Exchange or the AIM, such securities will typically be
valued using fair value pricing. Equity Securities traded on more than
one securities exchange will be valued at the last sale price or
official closing price, as applicable, on the business day as of which
such value is being determined at the close of the exchange
representing the principal market for such securities.
    Exchange-listed equity index futures contracts will typically be
valued at the closing price in the market where such instruments are
principally traded.
    Forward Contracts will typically be valued at the current day's
interpolated foreign exchange rate, as calculated using the current
day's spot rate, and the thirty, sixty, ninety and one-hundred-eighty
day forward rates provided by a Pricing Service or by certain
independent dealers in such contracts.
    Because foreign exchanges may be open on different days than the
days during which an investor may purchase or sell Shares, the value of
the Funds' assets may change on days when investors are not able to
purchase or sell Shares. Assets denominated in foreign currencies will
be translated into U.S. dollars at the exchange rate of such currencies
against the U.S. dollar as provided by a Pricing Service. The value of
assets denominated in foreign currencies will be converted into U.S.
dollars at the exchange rates in effect at the time of valuation.
Availability of Information
    The Funds' Web site (www.ftportfolios.com), which will be publicly
available prior to the public offering of Shares, will include a form
of the prospectus for the Funds that may be downloaded. The Web site
will include the Shares' ticker, CUSIP and exchange information along
with additional quantitative information updated on a daily basis,
including, for each Fund: (1) Daily trading volume, the prior business
day's reported NAV and closing price, mid-point of the bid/ask spread
at the time of calculation of such NAV (the ``Bid/Ask Price''),\35\ and
a calculation of the premium and discount of the Bid/Ask Price against
the NAV; and (2) data in chart format displaying the frequency
distribution of discounts and premiums of the daily Bid/Ask Price
against the NAV, within appropriate ranges, for each of the four
previous calendar quarters. On each business day, before commencement
of trading in Shares in the Regular Market Session \36\ on the
Exchange, each Fund will disclose on its Web site the identities and
quantities of the portfolio of securities and other assets (the
``Disclosed Portfolio'' as defined in Nasdaq Rule 5735(c)(2)) held by
the Fund that will form the basis for the Fund's calculation of NAV at
the end of the business day.\37\
---------------------------------------------------------------------------

    \35\ The Bid/Ask Price of each Fund will be determined using the
mid-point of the highest bid and the lowest offer on the Exchange as
of the time of calculation of the Fund's NAV. The records relating
to Bid/Ask Prices will be retained by each Fund and its service
providers.
    \36\ See Nasdaq Rule 4120(b)(4) (describing the three trading
sessions on the Exchange: (1) Pre-Market Session from 4 a.m. to 9:30
a.m., Eastern Time; (2) Regular Market Session from 9:30 a.m. to 4
p.m. or 4:15 p.m., Eastern Time; and (3) Post-Market Session from 4
p.m. or 4:15 p.m. to 8 p.m., Eastern Time).
    \37\ Under accounting procedures to be followed by the Funds,
trades made on the prior business day (``T'') will be booked and
reflected in NAV on the current business day (``T+1''). Accordingly,
a Fund will be able to disclose at the beginning of the business day
the portfolio that will form the basis for the NAV calculation at
the end of the business day.
---------------------------------------------------------------------------

    Each Fund's disclosure of derivative positions in the Disclosed
Portfolio will include sufficient information for market participants
to use to value these positions intraday. On a daily basis, each Fund
will disclose on its Web site the following information regarding each
portfolio holding, as applicable to the type of holding: Ticker symbol,
CUSIP number or other identifier, if any; a description of the holding
(including the type of holding); the identity of the security, index or
other asset or instrument underlying the holding, if any; quantity held
(as measured by, for example, par value, notional value or number of
shares, contracts or units); maturity date, if any; coupon rate, if
any; effective date, if any; market value of the holding; and
percentage weighting of the holding in the Fund's portfolio. The Web
site information will be publicly available at no charge.
    In addition, for each Fund, an estimated value, defined in Rule
5735(c)(3) as the ``Intraday Indicative Value,'' that reflects an
estimated intraday value of the Fund's Disclosed Portfolio, will be
disseminated. Moreover, the Intraday Indicative Value, available on the
NASDAQ OMX Information LLC proprietary index data service,\38\ will be
based upon the current value for the components of the Disclosed
Portfolio and will be updated and widely disseminated by one or more
major market data vendors and broadly displayed at least every 15
seconds during the Regular Market Session. The Intraday Indicative
Value will be based on quotes and closing prices from the securities'
local market and may not reflect events that occur subsequent to the
local market's close. Premiums and discounts between the Intraday
Indicative Value and the market price may occur. This should not be
viewed as a ``real time'' update of the NAV per Share of a Fund, which
is calculated only once a day.
---------------------------------------------------------------------------

    \38\ Currently, the NASDAQ OMX Global Index Data Service
(``GIDS'') is the Nasdaq global index data feed service, offering
real-time updates, daily summary messages, and access to widely
followed indexes and Intraday Indicative Values for ETFs. GIDS
provides investment professionals with the daily information needed
to track or trade Nasdaq indexes, listed ETFs, or third-party
partner indexes and ETFs.
---------------------------------------------------------------------------

    The dissemination of the Intraday Indicative Value, together with
the Disclosed Portfolio, will allow investors to determine the value of
the underlying portfolio of a Fund on a daily basis and will provide a
close estimate of that value throughout the trading day.
    Investors will also be able to obtain each Fund's Statement of
Additional Information (``SAI''), annual and semi-annual reports
(together, ``Shareholder Reports''), and Form N-CSR and Form N-SAR,
filed twice a year. Each Fund's SAI and Shareholder Reports will be
available free upon request from such Fund, and those documents and the
Form N-CSR and Form N-SAR may be viewed on-screen or downloaded from
the Commission's Web site at www.sec.gov. Information regarding market
price and trading volume of the Shares will be continually available on
a real-time basis throughout the day on brokers' computer screens and
other electronic services. Information regarding the previous day's
closing price and trading volume information for the Shares will be
published daily in the financial section of newspapers. Quotation and
last sale information for the Shares will be available via Nasdaq
proprietary quote and trade services, as well as in accordance with the
Unlisted Trading Privileges and the Consolidated Tape Association
(``CTA'') plans for the Shares. Quotation and last sale information for
the Equity Securities (to the extent traded on a U.S. exchange) will be
available from the exchanges on which they are traded as well as in
accordance with any applicable CTA plans.
    Pricing information for Short-Term Debt Instruments, repurchase
agreements, Forward Contracts, bank time deposits, certificates of
deposit and currency spot transactions will be

available from major broker-dealer firms and/or major market data
vendors and/or Pricing Services. Pricing information for exchange-
listed equity index futures contracts and non-U.S. Equity Securities
will be available from the applicable listing exchange and from major
market data vendors.
Initial and Continued Listing
    The Shares will be subject to Rule 5735, which sets forth the
initial and continued listing criteria applicable to Managed Fund
Shares. The Exchange represents that, for initial and continued
listing, each Fund must be in compliance with Rule 10A-3 \39\ under the
Act. A minimum of 100,000 Shares will be outstanding at the
commencement of trading on the Exchange. The Exchange will obtain a
representation from the issuer of the Shares that the NAV per Share
will be calculated daily and that the NAV and the Disclosed Portfolio
will be made available to all market participants at the same time.
---------------------------------------------------------------------------

    \39\ See 17 CFR 240.10A-3.
---------------------------------------------------------------------------

Trading Halts
    With respect to trading halts, the Exchange may consider all
relevant factors in exercising its discretion to halt or suspend
trading in the Shares of a Fund. Nasdaq will halt trading in the Shares
under the conditions specified in Nasdaq Rules 4120 and 4121, including
the trading pauses under Nasdaq Rules 4120(a)(11) and (12). Trading may
be halted because of market conditions or for reasons that, in the view
of the Exchange, make trading in the Shares inadvisable. These may
include: (1) The extent to which trading is not occurring in the
securities and/or the other assets constituting the Disclosed Portfolio
of a Fund; or (2) whether other unusual conditions or circumstances
detrimental to the maintenance of a fair and orderly market are
present. Trading in the Shares also will be subject to Rule
5735(d)(2)(D), which sets forth circumstances under which Shares of a
Fund may be halted.
Trading Rules
    Nasdaq deems the Shares to be equity securities, thus rendering
trading in the Shares subject to Nasdaq's existing rules governing the
trading of equity securities. Nasdaq will allow trading in the Shares
from 4:00 a.m. until 8:00 p.m., Eastern Time. The Exchange has
appropriate rules to facilitate transactions in the Shares during all
trading sessions. As provided in Nasdaq Rule 5735(b)(3), the minimum
price variation for quoting and entry of orders in Managed Fund Shares
traded on the Exchange is $0.01.
Surveillance
    The Exchange represents that trading in the Shares will be subject
to the existing trading surveillances, administered by both Nasdaq and
also the Financial Industry Regulatory Authority (``FINRA'') on behalf
of the Exchange, which are designed to detect violations of Exchange
rules and applicable federal securities laws.\40\ 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 applicable federal securities
laws.
---------------------------------------------------------------------------

    \40\ FINRA surveils trading on the Exchange pursuant to a
regulatory services agreement. The Exchange is responsible for
FINRA's performance under this regulatory services agreement.
---------------------------------------------------------------------------

    The surveillances referred to above generally focus on detecting
securities trading outside their normal patterns, which could be
indicative of manipulative or other violative activity. When such
situations are detected, surveillance analysis follows and
investigations are opened, where appropriate, to review the behavior of
all relevant parties for all relevant trading violations.
    FINRA, on behalf of the Exchange, will communicate as needed
regarding trading in the Shares and certain of the Equity Securities
and exchange-listed equity index futures contracts held by the Funds
with other markets and other entities that are members of ISG,\41\ and
FINRA may obtain trading information regarding trading in the Shares
and such securities and instruments held by the Funds from such markets
and other entities. In addition, the Exchange may obtain information
regarding trading in the Shares and certain of the Equity Securities
and exchange-listed equity index futures contracts held by the Funds
from markets and other entities that are members of ISG, which includes
securities and futures exchanges, or with which the Exchange has in
place a comprehensive surveillance sharing agreement. Moreover, FINRA,
on behalf of the Exchange, will be able to access, as needed, trade
information for certain fixed income securities held by the Funds
reported to FINRA's Trade Reporting and Compliance Engine (``TRACE'').
---------------------------------------------------------------------------

    \41\ For a list of the current members of ISG, see
www.isgportal.org. The Exchange notes that not all components of the
Disclosed Portfolio for a Fund may trade on markets that are members
of ISG or with which the Exchange has in place a comprehensive
surveillance sharing agreement.
---------------------------------------------------------------------------

    For each Fund, at least 90% of such Fund's net assets that are
invested (in the aggregate) in exchange-listed equity index futures
contracts will be invested in instruments that trade in markets that
are members of ISG or are parties to a comprehensive surveillance
sharing agreement with the Exchange.
    In addition, the Exchange also has a general policy prohibiting the
distribution of material, non-public information by its employees.
Information Circular
    Prior to the commencement of trading, the Exchange will inform its
members in an Information Circular of the special characteristics and
risks associated with trading the Shares. Specifically, the Information
Circular for each Fund will discuss the following: (1) The procedures
for purchases and redemptions of Shares in Creation Units (and that
Shares are not individually redeemable); (2) Nasdaq Rule 2111A, which
imposes suitability obligations on Nasdaq members with respect to
recommending transactions in the Shares to customers; (3) how
information regarding the Intraday Indicative Value and the Disclosed
Portfolio is disseminated; (4) the risks involved in trading the Shares
during the Pre-Market and Post-Market Sessions when an updated Intraday
Indicative Value will not be calculated or publicly disseminated; (5)
the requirement that members deliver a prospectus to investors
purchasing newly issued Shares prior to or concurrently with the
confirmation of a transaction; and (6) trading information. The
Information Circular will also discuss any exemptive, no-action and
interpretive relief granted by the Commission from any rules under the
Act.
    Additionally, the Information Circular for each Fund will reference
that such Fund is subject to various fees and expenses described in the
Registration Statement. The Information Circular for each Fund will
also disclose the trading hours of the Shares of such Fund and the
applicable NAV Calculation Time for the Shares. The Information
Circular for each Fund will disclose that information about the Shares
of such Fund will be publicly available on such Fund's Web site.
2. Statutory Basis
    Nasdaq believes that the proposal is consistent with Section 6(b)
of the Act in general and Section 6(b)(5) of the Act 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, and 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 Nasdaq Rule 5735. The
Exchange represents that trading in the Shares will be subject to the
existing trading surveillances, administered by both Nasdaq and FINRA
on behalf of the Exchange, which are designed to detect violations of
Exchange rules and applicable federal securities laws.
    Neither the Adviser nor the Sub-Adviser is a broker-dealer, but
each is affiliated with a broker-dealer, and is required to implement a
``fire wall'' with respect to its respective broker-dealer affiliate
regarding access to information concerning the composition and/or
changes to each Fund's portfolio. In addition, paragraph (g) of Nasdaq
Rule 5735 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.
    FINRA, on behalf of the Exchange, will communicate as needed
regarding trading in the Shares and certain of the Equity Securities
and exchange-listed equity index futures contracts held by the Funds
with other markets and other entities that are members of ISG, and
FINRA may obtain trading information regarding trading in the Shares
and such securities and instruments held by the Funds from such markets
and other entities. In addition, the Exchange may obtain information
regarding trading in the Shares and certain of the Equity Securities
and exchange-listed equity index futures contracts held by the Funds
from markets and other entities that are members of ISG, which includes
securities and futures exchanges, or with which the Exchange has in
place a comprehensive surveillance sharing agreement. Moreover, FINRA,
on behalf of the Exchange, will be able to access, as needed, trade
information for certain fixed income securities held by the Funds
reported to FINRA's TRACE. For each Fund, at least 90% of such Fund's
net assets that are invested (in the aggregate) in exchange-listed
equity index futures contracts will be invested in instruments that
trade in markets that are members of ISG or are parties to a
comprehensive surveillance sharing agreement with the Exchange. Under
normal market conditions, each Fund will invest in at least 20 Equity
Securities. Moreover, each Fund will satisfy the ISG Criteria and/or
the Alternative Criteria.
    The investment objective of each Fund will be to provide capital
appreciation. Under normal market conditions, each Fund will seek to
achieve its investment objective by investing at least 80% of its net
assets (including investment borrowings) in Principal Fund Equity
Securities, Forward Contracts and currency transactions entered into on
a spot (i.e., cash) basis. Each Fund may also invest up to 5% of its
net assets in exchange-listed equity index futures contracts. Each
Fund's transactions in Forward Contracts and exchange-listed equity
index futures contracts will be consistent with its investment
objective and the 1940 Act and will not be used to seek to achieve a
multiple or inverse multiple of an index. Each Fund will comply with
the regulatory requirements of the Commission with respect to coverage
in connection with its transactions in Forward Contracts and exchange-
listed equity index futures contracts. If the applicable guidelines
prescribed under the 1940 Act so require, a Fund will earmark cash,
U.S. government securities and/or other liquid assets permitted by the
Commission in the amount prescribed. Also, each Fund may hold up to an
aggregate amount of 15% of its net assets in illiquid assets
(calculated at the time of investment), deemed illiquid by the Adviser
and/or the Sub-Adviser. Each Fund will monitor its portfolio liquidity
on an ongoing basis to determine whether, in light of current
circumstances, an adequate level of liquidity is being maintained, and
will consider taking appropriate steps in order to maintain adequate
liquidity if, through a change in values, net assets, or other
circumstances, more than 15% of the Fund's net assets are held in
illiquid assets. Illiquid assets include securities subject to
contractual or other restrictions on resale and other instruments that
lack readily available markets as determined in accordance with
Commission staff guidance.
    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 will be publicly available regarding the Funds and the
Shares, thereby promoting market transparency. Moreover, the Intraday
Indicative Value, available on the NASDAQ OMX Information LLC
proprietary index data service, will be widely disseminated by one or
more major market data vendors and broadly displayed at least every 15
seconds during the Regular Market Session. On each business day, before
commencement of trading in Shares in the Regular Market Session on the
Exchange, each Fund will disclose on its Web site the Disclosed
Portfolio that will form the basis for the Fund's calculation of NAV at
the end of the business day. Information regarding market price and
trading volume of the Shares will be continually available on a real-
time basis throughout the day on brokers' computer screens and other
electronic services, and quotation and last sale information for the
Shares will be available via Nasdaq proprietary quote and trade
services, as well as in accordance with the Unlisted Trading Privileges
and the CTA plans for the Shares. Quotation and last sale information
for the Equity Securities (to the extent traded on a U.S. exchange)
will be available from the exchanges on which they are traded as well
as in accordance with any applicable CTA plans.
    Pricing information for Short-Term Debt Instruments, repurchase
agreements, Forward Contracts, bank time deposits, certificates of
deposit and currency spot transactions will be available from major
broker-dealer firms and/or major market data vendors and/or Pricing
Services. Pricing information for exchange-listed equity index futures
contracts and non-U.S. Equity Securities will be available from the
applicable listing exchange and from major market data vendors.
    Each Fund's Web site will include a form of the prospectus for such
Fund and additional data relating to NAV and other applicable
quantitative information. Trading in Shares of the Funds will be halted
under the conditions specified in Nasdaq Rules 4120 and 4121 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 Nasdaq Rule 5735(d)(2)(D), which sets forth circumstances
under which Shares of a Fund may be halted. In addition, as noted
above, investors will have ready access to information regarding each
Fund's holdings, the Intraday Indicative Value, the Disclosed
Portfolio, and quotation and last sale information for the Shares.

    Each Fund's investments will be valued daily. Investments traded on
an exchange (i.e., a regulated market), will generally be valued at
market value prices that represent last sale or official closing
prices. Non-exchange traded investments will generally be valued using
prices obtained from a Pricing Service. If, however, valuations for any
of the Funds' investments cannot be readily obtained as provided in the
preceding manner, or the Pricing Committee questions the accuracy or
reliability of valuations that are so obtained, such investments will
be valued at fair value, as determined by the Pricing Committee, in
accordance with the Valuation Procedures and in accordance with
provisions of the 1940 Act.
    The proposed rule change is designed to perfect the mechanism of a
free and open market and, in general, to protect investors and the
public interest in that it will facilitate the listing and trading of
additional types of actively managed exchange-traded products that will
enhance competition among market participants, to the benefit of
investors and the marketplace. As noted above, FINRA, on behalf of the
Exchange, will communicate as needed regarding trading in the Shares
and certain of the Equity Securities and exchange-listed equity index
futures contracts held by the Funds with other markets and other
entities that are members of ISG, and FINRA may obtain trading
information regarding trading in the Shares and such securities and
instruments held by the Funds from such markets and other entities.
    In addition, the Exchange may obtain information regarding trading
in the Shares and certain of the Equity Securities and exchange-listed
equity index futures contracts held by the Funds from markets and other
entities that are members of ISG, which includes securities and futures
exchanges, or with which the Exchange has in place a comprehensive
surveillance sharing agreement. Moreover, FINRA, on behalf of the
Exchange, will be able to access, as needed, trade information for
certain fixed income securities held by the Funds reported to FINRA's
TRACE. Furthermore, as noted above, investors will have ready access to
information regarding the Funds' holdings, the Intraday Indicative
Value, the Disclosed Portfolio, and quotation and last sale information
for the Shares. For each Fund, at least 90% of such Fund's net assets
that are invested (in the aggregate) in exchange-listed equity index
futures contracts will be invested in instruments that trade in markets
that are members of ISG or are parties to a comprehensive surveillance
sharing agreement with the Exchange. Under normal market conditions,
each Fund will invest in at least 20 Equity Securities. Moreover, each
Fund will satisfy the ISG Criteria and/or the Alternative Criteria.
    For the above reasons, Nasdaq believes 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 purposes of the Act. The Exchange believes that
the proposed rule change will facilitate the listing and trading of an
additional type of actively-managed exchange-traded fund [sic] that
will enhance competition among market participants, to the benefit of
investors and the marketplace.

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

    Written comments were neither solicited nor received.

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

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

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-NASDAQ-2015-161 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-NASDAQ-2015-161. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 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; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-NASDAQ-2015-161 and should
be submitted on or before January 29, 2016.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\42\
---------------------------------------------------------------------------

    \42\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-103 Filed 1-7-16; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 81, Number 113 (Monday, June 13, 2016)]
[Rules and Regulations]
[Page 38084]
[FR Doc No: 2016-13932]

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

DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 165

[Docket No. USCG-2015-0854]

Special Local Regulations and Safety Zones; Recurring Marine
Events and Fireworks Displays Within the Fifth Coast Guard District

AGENCY: Coast Guard, DHS.

ACTION: Notice of enforcement of regulation.

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

SUMMARY: The Coast Guard will enforce safety zone for fireworks
displays taking place at Urbanna Creek, Urbanna, VA on July 2, 2016.
This action is necessary to ensure safety of life on navigable waters
during this event. Our regulation for Recurring Marine Events within
the Fifth Coast Guard District identifies the regulated area for this
fireworks display event. During the enforcement period, no person or
vessel may enter, transit through, anchor in, or remain within the
regulated area without approval from the Captain of the Port or a
designated representative.

DATES: The regulations in 33 CFR 165.506, listed as event (c) 22 in the
Table to 33 CFR 165.506 will be enforced from 5:30 p.m. to 1 a.m. on
July 2, 2016; and in the case of inclement weather enforcement will be
from 5:30 p.m. to 1 a.m. on July 3, 2016.

FOR FURTHER INFORMATION CONTACT: If you have questions about this
notice of enforcement, call or email Ensign Sarah Reid, U.S. Coast
Guard Sector Hampton Roads (WWM); telephone<PHONE_NUMBER>, email
<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: The Coast Guard will enforce the safety zone
in 33 CFR 165.506 from 5:30 p.m. until 1 a.m. on July 2, 2016, for the
Urbanna Creek, VA fireworks display. This action is being taken to
provide for the safety of life on navigable waterways during this
event. Our regulation for Recurring Marine Events within the Fifth
Coast Guard District, Sec.  165.506, specifies the location of the
regulated area for this safety zone as a circular shaped area that
includes all waters of Urbanna Creek within a 350 foot radius of the
fireworks launch site at latitude 37[deg]38'09'' N., longitude
076[deg]34'03'' W., located on land near the east shoreline of Urbanna
Creek and south of Bailey Point. As specified in Sec.  165.506(d),
during the enforcement period, no vessel may not enter, remain in, or
transit through the safety zone without approval from the Captain of
the Hampton Roads (COTP) or a COTP designated representative. The Coast
Guard may be assisted by other Federal, state or local law enforcement
agencies in enforcing this regulation. If the Captain of the Port or
his designated on-scene Patrol Commander determines that the regulated
area need not be enforced for the full duration stated in this notice,
he or she may use a Broadcast Notice to Mariners to grant general
permission to enter the regulated area.
    This notice of enforcement is issued under authority of 33 CFR
165.506(d) and 5 U.S.C. 552(a). In addition to this notice of
enforcement in the Federal Register, the Coast Guard plans to provide
notification of this enforcement period via the Local Notice to
Mariners, marine information broadcasts, local radio stations and area
newspapers.

    Dated: May 24, 2016.
Christopher S. Keane,
Captain, U.S. Coast Guard, Captain of the Port, Hampton Roads, VA.
[FR Doc. 2016-13932 Filed 6-10-16; 8:45 am]
BILLING CODE 9110-04-P


[Federal Register: July 23, 2009 (Volume 74, Number 140)]
[Proposed Rules]
[Page 36420-36422]
[DOCID:fr23jy09-8]

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

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2009-0606; Directorate Identifier 2009-NE-11-AD]
RIN 2120-AA64

Airworthiness Directives; CFM International, S.A Model CFM56-3B1
and -3B2 Turbofan Engines

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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

SUMMARY: The FAA proposes to adopt a new airworthiness directive (AD)
for certain CFM International Model CFM56-3B1 and -3B2 turbofan
engines. This proposed AD would require initial and repetitive
inspections for damage to the fan blades. This proposed AD results from
a report of a failed fan blade with severe out-of-limit wear on the
underside of the blade platform where it contacts the damper. We are
proposing this AD to prevent failure of multiple fan blades, which
could result in an uncontained failure of the engine and damage to the
airplane.

DATES: We must receive any comments on this proposed AD by September
21, 2009.

ADDRESSES: Use one of the following addresses to comment on this
proposed AD.
     Federal eRulemaking Portal: Go to http://
www.regulations.gov and follow the instructions for sending your
comments electronically.
     Mail: Docket Management Facility, U.S. Department of
Transportation, 1200 New Jersey Avenue, SE., West Building Ground
Floor, Room W12-140, Washington, DC 20590-0001.
     Hand Delivery: Deliver to Mail address above between 9
a.m. and 5 p.m., Monday through Friday, except Federal holidays.
     Fax:<PHONE_NUMBER>.
    Contact CFM International, S. A., Technical Publication Department,
1 Neumann Way, Cincinnati, OH 45215; telephone<PHONE_NUMBER>; fax
(513) 552-2816, for a copy of the service information identified in
this proposed AD.

FOR FURTHER INFORMATION CONTACT: Stephen K. Sheely, Aerospace Engineer,
Engine Certification Office, FAA, Engine & Propeller Directorate, 12
New England Executive Park, Burlington, MA 01803; e-mail:
<EMAIL_ADDRESS>telephone<PHONE_NUMBER>; fax<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Comments Invited

    We invite you to send us any written relevant data, views, or
arguments regarding this proposal. Send your comments to an address
listed under ADDRESSES. Include ``Docket No. FAA-2009-0606; Directorate
Identifier 2009-NE-11-AD'' in the subject line of your comments. We
specifically invite comments on the overall regulatory, economic,
environmental, and energy aspects of the proposed AD. We will consider
all comments received by the closing date and may amend the proposed AD
in light of those comments.
    We will post all comments we receive, without change, to http://
www.regulations.gov, including any personal information you provide. We
will also post a report summarizing each substantive verbal contact
with FAA personnel concerning this proposed AD. Using the search
function of the Web site, anyone can find and read the comments in any
of our dockets, including, if provided, the name of the individual who
sent the comment (or signed the comment on behalf of an association,
business, labor union, etc.). You may review the DOT's complete Privacy
Act Statement in the Federal Register published on April 11, 2000 (65
FR 19477-78).

Examining the AD Docket

    You may examine the AD docket on the Internet at http://
www.regulations.gov; or in person at the Docket Operations office
between 9 a.m. and 5 p.m., Monday through Friday, except Federal
holidays. The AD docket contains this proposed AD, the regulatory
evaluation, any comments received, and other information. The street
address for the Docket Operations office (telephone<PHONE_NUMBER>) is
the same as the Mail address provided in the ADDRESSES section.
Comments will be available in the AD docket shortly after receipt.

Discussion

    On February 13, 2006, we received a report of a failed fan blade
with a 25 degrees midspan shroud. The underside of the blade platform
had severe out-of-limit wear at a contact point with the damper. We
couldn't determine the exact root cause for the wear. However, poor
damping of the 25 degrees midspan shroud blade set due to severe wear
on several dampers and the undersides of the fan blade platforms
contributed to high dynamic stress levels seen on this set of blades.
This condition, if not corrected, could result in failure of multiple
fan blades, which could result in an uncontained failure of the engine
and damage to the airplane.

Relevant Service Information

    We have reviewed and approved the technical contents of CFM
International Service Bulletin (SB) CFM56-3/3B/3C S/B 72-1067, dated
February 15, 2007, that describes procedures for performing on-wing and
in-shop inspections for wear.

Differences Between the Proposed AD and the Manufacturer's Service
Information

    CFM International SB CFM56-3/3B/3C S/B 72-1067, dated February 15,
2007, requires an initial inspection within 6 months. This proposed AD
would require the initial inspection within 3,000 cycles-in-service
(CIS) after the effective date of the proposed AD. CFM International SB
CFM56-3/3B/3C S/B 72-1067, dated February 15, 2007, also requires a
repetitive inspection within 1,500 to 3,000 cycles-since-last
inspection (CSLI). This proposed AD would require the repetitive
inspection within 3,000 CSLI.

FAA's Determination and Requirements of the Proposed AD

    We have evaluated all pertinent information and identified an
unsafe condition that is likely to exist or develop on other products
of this same type design. We are proposing this AD, which would require
performing initial and repetitive inspections of the fan blade for
wear. The proposed AD would require you to use the service information
described previously to perform these actions.

Costs of Compliance

    We estimate that this proposed AD would affect 50 engines installed
on airplanes of U.S. registry. We also estimate that it would take
about 8 work-hours per engine to perform the proposed actions, and that
the average labor rate is $80 per work-hour. Required parts would cost
about $38,000 per engine. Based on these figures, we estimate the total
cost of the proposed AD to U.S. operators to be $1,932,000.

Authority for This Rulemaking

    Title 49 of the United States Code specifies the FAA's authority to
issue rules on aviation safety. 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.
    We are issuing this rulemaking under the authority described in
Subtitle VII, Part A, Subpart III, Section 44701, ``General
requirements.'' Under that section, Congress charges the FAA with
promoting safe flight of civil aircraft in air commerce by prescribing
regulations for practices, methods, and procedures the Administrator
finds necessary for safety in air commerce. This regulation is within
the scope of that authority because it addresses an unsafe condition
that is likely to exist or develop on products identified in this
rulemaking action.

Regulatory Findings

    We have determined that this proposed AD would not have federalism
implications under Executive Order 13132. This proposed AD would not
have a substantial direct effect 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.
    For the reasons discussed above, I certify that the proposed AD:
    1. Is not a ``significant regulatory action'' under Executive Order
12866;
    2. Is not a ``significant rule'' under the DOT Regulatory Policies
and Procedures (44 FR 11034, February 26, 1979); and
    3. Would not have a significant economic impact, positive or
negative, on a substantial number of small entities under the criteria
of the Regulatory Flexibility Act.
    We prepared a regulatory evaluation of the estimated costs to
comply with this proposed AD. You may get a copy of this summary at the
address listed under ADDRESSES.

List of Subjects in 14 CFR Part 39

    Air transportation, Aircraft, Aviation safety, Incorporation by
reference, Safety.

The Proposed Amendment

    Under the authority delegated to me by the Administrator, the
Federal Aviation Administration proposes to amend 14 CFR part 39 as
follows:

PART 39--AIRWORTHINESS DIRECTIVES

    1. The authority citation for part 39 continues to read as follows:

    Authority: 49 U.S.C. 106(g), 40113, 44701.

Sec.  39.13  [Amended]

    2. The FAA amends Sec.  39.13 by adding the following new
airworthiness directive:

CFM International S.A.: Docket No. FAA-2009-0606; Directorate
Identifier 2009-NE-11-AD.

Comments Due Date

    (a) The Federal Aviation Administration (FAA) must receive
comments on this airworthiness directive (AD) action by September
21, 2009.

Affected ADs

    (b) None.

Applicability

    (c) This AD applies to CFM International S.A. model CFM56-3B1
and -3B2 turbofan engines with 25 degrees midspan shroud fan blades,
part numbers (P/Ns) 9527M99P08, 9527M99P09, 9527M99P10, 9527M99P11,
1285M39P01, or fan blade pairs, P/Ns 335-088-901-0, 335-088-902-0,
335-088-903-0, and 335-088-904-0 installed. These engines are
installed on, but not limited to, Boeing 737 series airplanes.

Unsafe Condition

    (d) This AD results from a report of a failed fan blade with
severe out-of-limit wear on the underside of the blade platform
where it contacts the damper. We are issuing this AD to prevent
failure of multiple fan blades, which could result in an uncontained
failure of the engine and damage to the airplane.

Compliance

    (e) You are responsible for having the actions required by this
AD performed within the compliance times specified unless the
actions have already been done.

Inspection for Wear

    (f) Within 3,000 cycles-in-service after the effective date of
this AD, perform an on-wing or in-shop inspection of the fan blade
and damper for wear. Use paragraph 3. Accomplishment Instructions of
CFM International Service Bulletin (SB) CFM56-3/3B/3C S/B 72-1067,
dated February 15, 2007.
    (g) If you find wear, perform additional inspections as
specified in paragraph 3. Accomplishment Instructions of CFM
International SB CFM56-3/3B/3C S/B 72-1067, dated February 15, 2007.
    (h) Thereafter, within intervals not to exceed 3,000 cycles-
since-last inspection, perform an on-wing or in-shop inspection for
wear. Use paragraph 3. Accomplishment Instructions of CFM
International SB CFM56-3/3B/3C S/B 72-1067, dated February 15, 2007.
    (i) If you find wear, perform additional inspections as
specified in paragraph 3. Accomplishment Instructions of CFM
International SB CFM56-3/3B/3C S/B 72-1067, dated February 15, 2007.

Installation Prohibition

    (j) After the effective date of this AD, don't install any 25
degrees midspan shroud fan blades, P/Ns 9527M99P08, 9527M99P09,
9527M99P10, 9527M99P11, 1285M39P01, or fan blade pairs, P/Ns 335-
088-901-0, 335-088-902-0, 335-088-903-0, and 335-088-904-0, unless
they have passed an inspection specified in paragraph 3.
Accomplishment Instructions of CFM International SB CFM56-3/3B/3C S/
B 72-1067, dated February 15, 2007.

Optional Terminating Action

    (k) Replacing the 25 degrees midspan shroud fan blade set with a
37 degrees midspan shroud fan blade set terminates the repetitive
inspection requirements specified in paragraph (h) of this AD.

Alternative Methods of Compliance

    (l) The Manager, Engine Certification Office, has the authority
to approve alternative methods of compliance for this AD if
requested using the procedures found in 14 CFR 39.19.

Related Information

    (m) Contact Stephen K. Sheely, Aerospace Engineer, Engine
Certification Office, FAA, Engine & Propeller Directorate, 12 New
England Executive Park, Burlington, MA 01803; e-mail:
<EMAIL_ADDRESS>telephone<PHONE_NUMBER>; fax (781) 238-
7199, for more information about this AD.
    (n) CFM International SB CFM56-3/3B/3C S/B 72-1067, dated
February 15, 2007, pertains to the subject of this AD. Contact CFM
International, S. A., Technical Publication Department, 1 Neumann
Way, Cincinnati, OH 45215; telephone<PHONE_NUMBER>; fax (513) 552-
2816, for a copy of this service information.
    (o) EASA airworthiness directive 2009-0036, dated February 20,
2009, also addresses the subject of this AD.

    Issued in Burlington, Massachusetts, on July 16, 2009.
Peter A. White,
Assistant Manager, Engine and Propeller Directorate, Aircraft
Certification Service.
[FR Doc. E9-17473 Filed 7-22-09; 8:45 am]

BILLING CODE 4910-13-P


[Federal Register Volume 85, Number 25 (Thursday, February 6, 2020)]
[Notices]
[Pages 7011-7012]
[FR Doc No: 2020-02332]

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

DEPARTMENT OF TRANSPORTATION

Office of the Secretary

[Docket No. DOT-OST-2019-0179]

Notice of Request for Comments: Ensuring American Leadership in
Automated Vehicle Technologies: Automated Vehicles 4.0 (AV 4.0)

AGENCY: Office of the Secretary (OST), U.S. Department of
Transportation (USDOT).

ACTION: Notice of request for comments.

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

SUMMARY: The USDOT and the White House Office of Science and Technology
Policy (OSTP) invites public comment on the document, Ensuring American
Leadership in Automated Vehicle Technologies: Automated Vehicles 4.0
(AV 4.0). This document builds upon Preparing for the Future of
Transportation: Automated Vehicles 3.0 (AV 3.0) and expands the scope
to 38 relevant United States Government (USG) components which have
direct or tangential equities in safe development and integration of AV
technologies.

DATES: You should submit your comments prior to April 2nd, 2020.
    Written Comments: Comments should refer to the docket number above
and be submitted by one of the following methods:
     Federal Rulemaking Portal: http://www.regulations.gov.
Follow the online instructions for submitting comments.
     Mail: Docket Management Facility, U.S. Department of
Transportation, 1200 New Jersey Avenue SE, West Building Ground Floor,
Room W12-140, Washington, DC 20590-0001.
     Hand Delivery: 1200 New Jersey Avenue SE, West Building
Ground Floor, Room W12-140, Washington, DC, between 9 a.m. and 5 p.m.
ET, Monday through Friday, except Federal Holidays.
    Instructions: For detailed instructions on submitting comments and
additional information on the rulemaking process, see the Public
Participation heading of the SUPPLEMENTARY INFORMATION section of this
document. Note that all comments received will be posted without change
to http://www.regulations.gov, including any personal information
provided.
    Privacy Act: Anyone is able to search the electronic form of all
comments received into any of our dockets by the name of the individual
submitting the comment (or signing the comment, if submitted on behalf
of an association, business, labor union, etc.). You may review USDOT's
complete Privacy Act Statement in the Federal Register published on
April 11, 2000 (65 FR 19477-78) or at https://www.transportation.gov/privacy.
    Docket: For access to the docket to read background documents or
comments received, go to http://www.regulations.gov or to the street
address listed above. Follow the online instructions for accessing the
dockets.

FOR FURTHER INFORMATION CONTACT: Please contact us at
<EMAIL_ADDRESS>or Sujeesh Kurup<PHONE_NUMBER>,
SujeeshKurup.SudarsanaKurup@ostp.eop.gov).

SUPPLEMENTARY INFORMATION: AV 4.0 builds on AV 3.0 by expanding the
scope to 38 Federal departments, independent agencies, commissions, and
Executive Offices of the President. AV 4.0 is structured around three
key areas: (1) USG AV technologies principles, (2) Administration
Efforts Supporting AV Technology Growth and Leadership, and (3) USG
Activities and Opportunities for Collaboration. The AV 4.0 document is
available at: www.transportation.gov/av/4.
    The USDOT and OSTP sees AV 4.0 as a method to ensure a consistent
USG approach to AV technologies and to ensure that the United States
continues to lead AV technologies' research, development, and
integration. The USDOT and OSTP are seeking public comments on the
document, Ensuring American Leadership in Automated Vehicle
Technologies: Automated Vehicles 4.0.

Public Participation

How do I prepare and submit comments?

    Your comments must be written and in English. To ensure that your
comments are filed correctly in the docket, please include the docket
number of this document in your comments.
    Please submit one copy (two copies if submitting by mail or hand
delivery) of your comments, including the attachments, to the docket
following the instructions given above under ADDRESSES. Please note, if
you are submitting comments electronically as a PDF (Adobe) file, we
ask that the documents submitted be scanned using an Optical Character
Recognition (OCR) process, thus allowing the agency to search and copy
certain portions of your submissions.

How do I submit confidential business information?

    Any submissions containing Confidential Information must be
delivered to OST in the following manner:
     Submitted in a sealed envelope marked ``confidential
treatment requested'';
     Accompanied by an index listing the document(s) or
information that the submitter would like the Department to withhold.
The index should include information such as numbers used to identify
the relevant document(s) or information, document title and
description, and relevant page numbers and/or section numbers within a
document; and
     Submitted with a statement explaining the submitter's
grounds for

objecting to disclosure of the information to the public.
    OST also requests that submitters of Confidential Information
include a non-confidential version (either redacted or summarized) of
those confidential submissions in the public docket. In the event that
the submitter cannot provide a non-confidential version of its
submission, OST requests that the submitter post a notice in the docket
stating that it has provided OST with Confidential Information. Should
a submitter fail to docket either a non-confidential version of its
submission or to post a notice that Confidential Information has been
provided, we will note the receipt of the submission on the docket,
with the submitter's organization or name (to the degree permitted by
law) and the date of submission.

Will the agency consider late comments?

    The USDOT will consider all comments received before the close of
business on the comment closing date indicated above under DATES. To
the extent possible, the agency will also consider comments received
after that date. Given that we intend for the policy document to be a
living document and to be developed in an iterative fashion, subsequent
opportunities to comment will also be provided periodically.

How can I read the comments submitted by other people?

    You may read the comments received at the address given above under
COMMENTS. The hours of the docket are indicated above in the same
location. You may also see the comments on the internet, identified by
the docket number at the heading of this notice, at http://www.regulations.gov.

    Issued in Washington, DC on January 30, 2020, under authority
delegated at 49 U.S.C. 1.25a.
Finch Fulton,
Deputy Assistant Secretary for Transportation Policy.
[FR Doc. 2020-02332 Filed 2-5-20; 8:45 am]
 BILLING CODE 4910-9X-P


[Federal Register Volume 77, Number 48 (Monday, March 12, 2012)]
[Notices]
[Pages 14513-14514]
[FR Doc No: 2012-5901]

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

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

Combined Notice of Filings 1

    Take notice that the Commission received the following electric
rate filings:

    Docket Numbers: ER11-4320-002.
    Applicants: Arizona Public Service Company.
    Description: Amendment to Service Agreement 174; Gila River and
Sundevil IOA to be effective 2/6/2012.
    Filed Date: 3/1/12.
    Accession Number: 20120301-5221.
    Comments Due: 5 p.m. ET 3/22/12.

    Docket Numbers: ER12-1193-000.
    Applicants: PacifiCorp.
    Description: Wolverine Creek Goshen Phase 2 Amended and Restated
LGIA to be effective 9/22/2010.
    Filed Date: 3/1/12.
    Accession Number: 20120301-5240.
    Comments Due: 5 p.m. ET 3/22/12.

    Docket Numbers: ER12-1194-000.
    Applicants: Midwest Independent Transmission System Operator, Inc.
    Description: 03-01-2012 MVP ARR Compliance to be effective 9/1/
2012.
    Filed Date: 3/1/12.
    Accession Number: 20120301-5242.
    Comments Due: 5 p.m. ET 3/22/12.

    Docket Numbers: ER97-4143-026; ER11-46-003; ER10-2975-003; ER98-
542-028; ER10-727-003.
    Applicants: American Electric Power Service Corporation, AEP Energy
Partners, Inc., CSW Energy Services, Inc., Central and South West
Services, Inc., AEP Retail Energy Partners LLC.
    Description: Notice of change in status of American Electric Power
Service Corporation.
    Filed Date: 3/1/12.
    Accession Number: 20120301-5268.
    Comments Due: 5 p.m. ET 3/22/12.

    The filings are accessible in the Commission's eLibrary system by

clicking on the links or querying the docket number.
    Any person desiring to intervene or protest in any of the above
proceedings must file in accordance with Rules 211 and 214 of the
Commission's Regulations (18 CFR 385.211 and 385.214) on or before 5
p.m. Eastern time on the specified comment date. Protests may be
considered, but intervention is necessary to become a party to the
proceeding.
    eFiling is encouraged. More detailed information relating to filing
requirements, interventions, protests, service, and qualifying
facilities filings can be found at: http://www.ferc.gov/docs-filing/efiling/filing-req.pdf. For other information, call<PHONE_NUMBER>
(toll free). For TTY, call<PHONE_NUMBER>.

    Dated: March 2, 2012.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2012-5901 Filed 3-9-12; 8:45 am]
BILLING CODE 6717-01-P