[Federal Register: January 24, 2011 (Volume 76, Number 15)]
[Notices]
[Page 4141-4144]
[DOCID:fr24ja11-92]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-63717; File No. SR-Phlx-2010-145]

Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of
Filing of Amendment No. 1 and Order Granting Accelerated Approval to a
Proposed Rule Change, as Modified by Amendment No. 1 Thereto, Relating
to the Establishment of Remote Specialists

January 14, 2011.

I. Introduction

    On October 14, 2010, NASDAQ OMX PHLX LLC (``Phlx'' or the
``Exchange'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change to allow certain Phlx exchange members to act as
option specialists that are not physically present on the option
trading floor. The proposed rule change was published for comment in
the Federal Register on November 2, 2010.\3\ On January 11, 2011, the
Exchange filed Amendment No. 1 to the proposed rule change.\4\ The
Commission received no comments on the proposal. This order provides
notice of filing of Amendment No. 1 and grants accelerated approval to
the proposed rule change, as modified by Amendment No. 1.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 63192 (October 27,
2010), 75 FR 67427 (``Notice'').
    \4\ On December 16, 2010, the Exchange extended the period for
Commission consideration of its proposal to January 14, 2011. See 15
U.S.C. 78s(b)(2)(A)(ii)(II) (concerning the ability of the self-
regulatory organization that filed a proposed rule change to extend
the time period for Commission consideration of its proposal).
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II. Description of the Proposal

    The Exchange proposes to amend Phlx Option Rules 501, 506, 507,
1014, and 1020 to provide for remote specialists under limited
circumstances and amend its Option Floor Procedure Advices \5\ B-3 and
E-1 to reflect the new category of remote specialist.
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    \5\ Phlx's Options Floor Procedure Advices (``OFPAs'' or
``Advices'') are part of the Exchange's minor rule plan (``MRP'' or
``Minor Rule Plan''), which consists of Advices with preset fines,
pursuant to Rule 19d-1(c) under the Act (17 CFR 240.19d-1(c)). See
e.g., Securities Exchange Act Release No. 50997 (January 7, 2005),
70 FR 2444 (January 13, 2005) (SR-Phlx-2003-40) (order approving the
Exchange's Options Floor Broker Management System). As this time,
Phlx is not proposing to change any of the fines that are applicable
under any of the Advices.
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    Currently, Phlx has several types of Registered Options Traders
(``ROTs'') \6\ that can register as market makers on the Exchange,
including specialists, Streaming Quote Traders (``SQTs''),\7\ and
Remote Streaming Quote Traders (``RSQTs'').\8\ Specialists are floor-
based Exchange members who are registered as options specialists
pursuant to Rule 1020(a). An SQT has a physical presence on the options
floor (though they may be ``in-crowd'' or ``out-of-crowd'') and is
authorized to generate and submit option quotations electronically in
options to which such SQT is assigned, but may only do so when he or
she is physically present on the floor of the Exchange. An RSQT, on the
other hand, has no physical trading floor presence and instead is
authorized to generate and submit option quotations electronically in
options to which such RSQT has been assigned. The various market making
requirements applicable to each category of market maker are set forth
in Rule 1014. Rules 500 through 599 (the ``Allocation and Assignment
Rules'') generally describe the process for application and appointment
of specialists, SQTs and RSQTs, as well as the allocation of classes of
options to them.\9\
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    \6\ A ROT is a member who has received permission from the
Exchange to trade in options for his own account. Phlx also has
Directed SQTs and Directed RSQTs, which receive Directed Orders as
defined in Rule 1080(l)(i)(A). Specialists may likewise receive
Directed Orders. Further, Phlx rules also provide for non-streaming
ROTs (``non-SQT ROT''), which can make markets in certain options on
an issue-by-issue basis. See Rule 1014(b)(ii)(C).
    \7\ See Rule 1014(b)(ii)(A).
    \8\ See Rule 1014(b)(ii)(B).
    \9\ The Allocation and Assignment Rules also indicate under what
circumstances new allocations may not be made. See, e.g.,
Supplementary Material .01 to Rule 506.
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    Accordingly, while Phlx's rules provide for remote market-making
ROTs (i.e., RSQTs), they do not provide for remote specialists. Rather,
Phlx's rules currently require that each options class and series
listed on the Exchange have a specialist physically present on the

options floor (``floor-based specialist'').\10\ The Exchange notes
that, historically, a floor-based specialist was required for each
options class and series, consistent with the traditional model of an
open outcry auction market featuring trading crowds at physical trading
posts on the floor and Floor Brokers \11\ that represent orders on the
floor on behalf of others.\12\ In addition to its floor-based trading
environment, Phlx also operates an electronic system to execute option
orders,\13\ resulting in a hybrid-model options market that combines a
traditional open outcry auction market trading floor with electronic
trading (the ``current Phlx market'').\14\
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    \10\ The Exchange states in the Notice that at least one
exchange that uses a specialist system has allowed certain option
series to trade without a designated lead market maker (specialist).
    \11\ See Rule 1060.
    \12\ See Notice, supra note 3, at 75 FR 67428.
    \13\ See Rule 1080 regarding the Exchange's electronic order,
trading, and execution system.
    \14\ The current Phlx market model combining open outcry and
electronic trading is also used by other options exchanges, such as
Chicago Board Options Exchange, Inc., NYSE Amex LLC and NYSE Arca,
Inc. Only electronic options trading is done on other exchanges,
such as the International Securities Exchange, LLC and The NASDAQ
Stock Market LLC.
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    The Exchange notes that it has found it to be difficult at times,
if not impossible, to allocate certain option products. For example,
the Exchange has found that specialists may, at times, relinquish their
options privileges, when, for example, the underlying securities are
involved in a takeover, a merger/acquisition situation, or some type of
rights offering.\15\ Without a floor-based specialist that is willing
to retain (or accept) allocation of an option, the Exchange may not
list such options pursuant to its current rules. This, in turn, may
negatively impact market participants and investors to the extent that
the sudden delisting of a Phlx option limits their choice of execution
venues. As discussed below, Phlx's proposed rule change is intended to
address the difficulty that Phlx has faced in allocating options where
no floor-based specialists are willing to accept the allocation.
Specifically, Phlx proposes to allow for remote specialists, as it
currently does for RSQTs, in order to expand the universe of market
participants that could assume the role of specialist and help ensure
the listing, or continued listing, of options on Phlx.
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    \15\ See Notice, supra note 3, at 75 FR 67428.
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III. Discussion

    After careful review, the Commission finds that the proposed rule
change, as modified by Amendment No. 1, is consistent with the
requirements of the Act and the rules and regulations thereunder
applicable to a national securities exchange.\16\ Specifically, the
Commission finds that the proposal is consistent with Section 6(b)(5)
of the Act,\17\ in that the proposal has been designed to promote just
and equitable principles of trade, and to protect investors and the
public interest.
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    \16\ In approving the proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. 15 U.S.C. 78c(f).
    \17\ 15 U.S.C. 78f(b)(5).
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    By providing for Remote Specialists, the Commission believes that
Phlx's proposal will allow it to list, or continue listing, an option
in which it does not have a registered floor-based specialist. The
concept of a Remote Specialist would be similar to the existing class
of RSQTs, and several rules that are presently applicable or unique to
RSQTs would be expanded to encompass Remote Specialists. Such
provisions are generally reflective of the ``remote'' nature of a
Remote Specialist and are intended to accommodate the unique
circumstances of a remote quoting specialist. However, the quoting
obligations applicable to a Remote Specialist would be heightened over
that which is applicable to RSQTs to reflect their status as
``specialists'' under Exchange rules. Accordingly, all specialists,
whether floor-based or remote, would be subject to similar requirements
and similar privileges. Specific details of various provisions in the
Exchange's proposed rule change are discussed further below.

Specialist Rights and Obligations

    Phlx proposes to define ``remote specialist'' by amending Rule 1020
to state that a remote specialist is a qualified RSQT approved by the
Exchange to function as a specialist in one or more options, if the
Exchange determines that it cannot allocate such options to a non-
remote (i.e., floor-based) specialist. As provided in proposed Rule
501(f)(iii), a Remote Specialist would have all the rights and
obligations of a specialist, unless Exchange rules provide otherwise.
Further, Phlx proposes to underscore this principle by indicating in
Rule 1020(a) that the term ``specialist'' includes a Remote Specialist,
as defined in Rule 1020(a)(ii), that is registered pursuant to Rule 501
and that a Remote Specialist has all the rights and obligations of an
options specialist on the Exchange.

Becoming a Remote Specialist

    The Exchange also proposes to amend Rule 501, which generally deals
with the process of applying for approval to be a specialist, to
indicate that in certain circumstances RSQTs may seek to register as
Remote Specialists. Specifically, the process for becoming a Remote
Specialist would be a two-step process.\18\ A member would first need
to qualify and register as a market maker on the Exchange by becoming
approved as an RSQT pursuant to Rule 507.\19\ Then, if the RSQT wished
to become a Remote Specialist, it would need to apply separately to
become a Remote Specialist pursuant to the separate process set forth
in Rule 501. Proposed Rule 501(f) provides that RSQTs may submit an
application to be an approved specialist unit \20\ and the Exchange may
approve such application in one or more options. Under Rule 501(f)(i),
a Remote Specialist could function as a specialist in one or more
options only if the Exchange determines that it cannot allocate such
option(s) to a floor-based specialist.\21\
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    \18\ Proposed Rule 507(f) would state that nothing in Rule 507
shall be construed to automatically qualify an RSQT to be a Remote
Specialist on the Exchange.
    \19\ For all RSQT application and approval criteria, see Rule
507(a)(i)(A) through (a)(i)(G).
    \20\ A ``specialist unit,'' including a Remote Specialist unit,
may have one or more individual ``specialists.''
    \21\ Additionally, in light of the proposed off-floor Remote
Specialist, Phlx proposes to modify Rule 506(c) to require that the
Exchange's decisions regarding allocation of specialist privileges
be not only communicated in writing to floor members, but also
communicated in writing to all Exchange members (both floor-based
and off-floor).
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    The proposed rule would require that each Remote Specialist be
available and reachable at all times during trading hours for the
product(s) allocated to such specialist.\22\ Accordingly, a Remote
Specialist would be required to provide Exchange staff and members with
telephonic and/or electronic communication access to such specialist
and its associated staff at all times during trading hours.\23\
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    \22\ See Proposed Rule 501(f)(ii). See also OFPA E-1 (Required
Staffing of Options Floor). A Remote Specialist would be required to
have a representative available during the times required by that
OFPA.
    \23\ To the extent necessary, the Exchange represents that it
would announce such communication arrangements to its members via an
Options Trading Alert (``OTA'') or Options Regulatory Alert
(``ORA'').
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    Additionally, Phlx proposes to amend Rule 501 and 506 to indicate
that back-up specialist arrangements and assistant specialist
requirements are not applicable to Remote Specialists.\24\ In support
of this provision, the Exchange notes its belief that the rationale for

requiring designation of an assistant specialist and a back-up
specialist in the floor-based context is antiquated in the context of
the Exchange's electronic-based trading system, in which assigned
RSQTs, in conjunction with other assigned market makers on the
Exchange, are able to provide liquidity in the event of a specialist's
temporary absence.\25\ Further, a similar class of remote market makers
on Phlx (RSQTs) does not have back-up personnel requirements.\26\
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    \24\ The Exchange also proposes to clarify in Advice E-1 that a
Remote Specialist is exempt from the obligation to have personnel on
the trading floor, while retaining the obligation to have a
representative available telephonically.
    \25\ In addition, the Exchange notes that nearly all option
issues traded on Phlx are traded on multiple exchanges. As such, the
historical risk that is addressed by the assistant/backup
requirement (namely, the ability of the Exchange to foster the
provision of liquidity) is diminished. See Notice, supra note 3, at
75 FR 67429.
    \26\ See Notice, supra note 3, at 75 FR 67429, n.20.
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Quoting Obligations and Priority

    Remote Specialists would be subject to all of the obligations of a
floor-based specialist on the Exchange, except where otherwise noted in
the Exchange's rules.\27\ Specifically, the Exchange proposes to amend
Rule 1014(b)(ii)(D)(2) to provide that Remote Specialists in a
particular option shall be responsible to quote two-sided markets in
that option to the same extent as on-floor specialists would be
required to do. The Exchange further proposes to amend Rule
1014(b)(ii)(D)(1) to state that the RSQT quoting requirements are not
applicable to RSQTs when they are acting in the capacity of Remote
Specialist. The intent of this provision is to establish equivalent
quoting requirements as between on-floor specialists and Remote
Specialists.
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    \27\ See Proposed Rule 501(f)(iii).
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    Currently, Rule 1014 provides that quoting obligations do not apply
to RSQTs in certain types of options products and establishes an
exemption for RSQTs and other market makers from the obligations set
forth in Rule 1014 in certain categories of products. The Exchange
proposes to add new language to indicate that these exemptions apply to
RSQTs only when they are acting as RSQTs, and would not apply to RSQTs
when they are functioning as Remote Specialists in particular options.
    Further, the Exchange proposes to amend sub-paragraph (b)(ii)(B) of
Rule 1014 to clarify that an RSQT cannot simultaneously quote both as
RSQT and as Remote Specialist in a particular security. That is, if an
RSQT is a Remote Specialist in a particular security, the Remote
Specialist must make a market as a specialist and may not make a market
as an RSQT in that particular security.\28\ Additionally, the Exchange
proposes to add Remote Specialists to Commentary .05(c)(ii) of Rule
1014 to reflect that Remote Specialists will be treated similar to
RSQTs and out-of-crowd SQTs for priority purposes under that Rule
because they do not engage in open outcry floor trading.
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    \28\ As an example of the operation of the proposed rules
wherein an RSQT may function as a traditional RSQT and also function
as a Remote Specialist, if an RSQT is allocated two option classes
as a Remote Specialist, in those two classes the Remote Specialist
will have the very same quoting (market making) requirements that
are currently applicable to all specialists, including continuous
quoting obligations. In the remaining classes to which an RSQT is
appointed, the RSQT will have the same quoting (market making)
requirements that are applicable to all RSQTs. The RSQT will not be
able to submit quotes or act as RSQT in the two allocated Remote
Specialist classes. See Amendment No. 1 to File No. SR-Phlx-2010-145
at 15 n.29 (January 11, 2011).
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    In addition, Commentary .05(b) to Rule 1014 states that SQTs and
RSQTs can submit orders electronically. The Exchange is amending
Commentary .05(b) to provide that Remote Specialists also may submit
quotes electronically. Further, Commentary .05(c)(i) provides that if a
Floor Broker presents a non-electronic order in an option assigned to
an RSQT or an off-floor SQT, such RSQT or SQT may not participate in
trades stemming from the non-electronic order unless the order is
executed at the price quoted by the non-crowd RSQT or SQT at the time
of execution. The Exchange proposes to include Remote Specialists in
Commentary .05(c)(i) to establish priority for Remote Specialists that
is coextensive with the priority afforded in that Rule to RSQTs and
out-of-crowd SQTs.
    The Commission believes that these provisions are appropriate to
set forth equivalent obligations and standards applicable to Remote
Specialists that are equivalent to the obligations and standards
applicable to floor-based specialists. The Commission believes that a
specialist must have an affirmative obligation to hold itself out as
willing to buy and sell options for its own account on a regular or
continuous basis to justify receiving unique benefits available to the
specialist. The Commission believes that Phlx's rules impose such
affirmative obligations on Remote Specialists that choose to operate
remotely and notes that, under the proposal, Remote Specialists acting
from a remote location would still be required to meet the obligations
of a floor-based specialist.\29\ Furthermore, the Commission believes
that RSQTs that act as Remote Specialists where no on-floor specialists
are willing to accept, or retain, an option allocation, would provide
or continue to provide a market that would not otherwise exist on the
Exchange, which should benefit traders, investors, and public customers
making hedging and trading decisions. Further, the proposed rules
clearly provide that an RSQT that becomes a Remote Specialist in a
particular security must make a market in that security as a specialist
and may not make a market as an RSQT in that particular security.
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    \29\ See id.
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OFPA and Advices

    The Exchange also proposes to clarify several OFPAs regarding a
Remote Specialist's off-floor electronic quoting and trading
capabilities. Particularly, the Exchange is amending Advice B-3 to
state that a Remote Specialist is exempted from the requirement that an
ROT, including a specialist, trade a certain percentage of volume on
the Exchange in person. The change reflects the fact that a Remote
Specialist would not be physically present on the Exchange's trading
floor and would instead submit quotes and orders remotely.
Additionally, the Exchange is deleting Advice A-7 (specialist
responsibilities for cancellations) and Advice A-10 (specialists
trading the book) as specialists are no longer agents for the book with
respect to Advice A-10, and both Advices are no longer required in
light of subsequent developments in the Exchange's electronic trading
and communication capabilities.\30\
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    \30\ See id. at 17.
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Surveillance

    Finally, the Exchange represents that it has developed surveillance
procedures for its auction and electronic markets and will use the
surveillance procedures now in place to perform surveillance of Remote
Specialists.\31\
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    \31\ See Notice, supra note 3, at 75 FR 67431.
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Accelerated Approval

    In Amendment No. 1, the Exchange clarifies the role of a RSQT
acting in the capacities of both a RSQT and a Remote Specialist to
state that when acting as a Remote Specialist in specifically allocated
classes the Remote Specialist will have all the same obligations that
are applicable to Specialists, including continuous quoting
obligations.\32\ Amendment No. 1 also amended proposed Rule 501(f)(ii)
to require a Remote Specialist to provide Exchange staff with either
telephonic or electronic communication access (as originally proposed,
only telephonic access was specified). Finally, Amendment No. 1

proposes to delete (rather than amend, as originally proposed) Advices
A-7 and A-10, which the Exchange believes are no longer necessary for
the reasons discussed above. Because the changes proposed in Amendment
No. 1 are minor changes to the proposal that do not raise material
issues, the Commission finds that good cause exists, consistent with
Section 19(b) of the Act,\33\ for approving the proposed rule change,
as modified by Amendment No. 1, prior to the thirtieth day after
publication of notice of filing of Amendment No. 1 in the Federal
Register.
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    \32\ See Amendment No. 1, supra note 28, at 15 n.29.
    \33\ 15 U.S.C. 78s(b).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change, as modified by Amendment No. 1, is consistent with the Act.
Comments may be submitted by any of the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to<EMAIL_ADDRESS>Please include
File Number SR-Phlx-2010-145 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.

All submissions should refer to File Number SR-Phlx-2010-145. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/
sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for 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 the filing also will be available for
inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-Phlx-2010-145 and should be
submitted on or before February 14, 2011.

V. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\34\ that the proposed rule change (SR-Phlx-2010-145), as modified
by Amendment No. 1, be, and it hereby is, approved.
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    \34\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\35\
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    \35\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-1297 Filed 1-21-11; 8:45 am]
BILLING CODE 8011-01-P


 MEMORANDUM

DATE: 12/9/14

FROM: 	Marguerite McLamb/EPA OAQPS

TO:CLEAN POWER PLAN FOR EXISTING POWER PLANTS; DOCKET ID: OAR - 2013-0602

SUBJECT:DISCUSSION OF THE CLEAN POWER Plan at a forum organized by the NC Sustainable Energy Association SUMMARY:         EPA OAQPS provided information on the Clean Power Plan to participants at a panel discussion on the Clean Power Plan at the NC Sustainable Energy Association's "Making Energy Work" conference on October 1, 2014.  ATTENDEES:

Panelists:  Marguerite McLamb/EPA OAQPS Luis Martinez/ NRDC Michael Olive/Duke Energy Kim Reitterer/ Elm Engineering

Approximately 50 other attendees

ATTACHMENT


[Federal Register Volume 80, Number 78 (Thursday, April 23, 2015)]
[Notices]
[Pages 22781-22782]
[FR Doc No: 2015-09436]

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DEPARTMENT OF TRANSPORTATION

Pipeline and Hazardous Materials Safety Administration

[Docket No. PHMSA-2015-0099, Notice No. 15-7]

Hazardous Materials: Emergency Response Information Requirements

AGENCY: Pipeline and Hazardous Materials Safety Administration (PHMSA),
DOT.

ACTION: Notice.

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SUMMARY: PHMSA is issuing this notice to remind hazardous materials
shippers and carriers of their responsibility to ensure that current,
accurate and timely emergency response information is immediately
available to emergency response officials for shipments of hazardous
materials, and such information is maintained on a regular basis.

FOR FURTHER INFORMATION CONTACT: Neal Suchak, Transportation
Specialist, Standards and Rulemaking Division, Office of Hazardous
Materials Safety, Pipeline and Hazardous Materials Safety
Administration, U.S. Department of Transportation, 1200 New Jersey Ave.
SE., Washington, DC 20590. Telephone:<PHONE_NUMBER> or, via email:
<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Background and Recent Incidents

    PHMSA is issuing this safety advisory notice to remind offerors,
including re-offerors, and carriers of hazardous materials of their
responsibilities pertaining to emergency response information. The
Hazardous Materials Regulations (HMR; 49 CFR parts 171-180),
specifically Subpart G of Part 172, prescribe requirements for detailed
emergency response information, including, accessibility and
communication of incident mitigation measures.
    On February 16, 2015 a CSX train carrying 109 cars of petroleum
crude oil derailed in Mt. Carbon, WV. The accident resulted in the
derailment of 26 tank cars, 14 of which caught fire. On March 5, 2015,
a BNSF train carrying 103 cars of petroleum crude oil derailed in
Galena, Il. Of the 21 cars derailed involved in the incident, five
caught fire. While the Department is still investigating the
circumstances of these incidents, they serve as a reminder that
accurate and accessible emergency response information can be a
critical component for an adequate emergency response effort.

History

    On June 27, 1989, the Research and Special Programs Administration
(RSPA; the predecessor to PHMSA) published a final rule in the Federal
Register that codified requirements to provide certain emergency
response information on hazardous materials during their
transportation. The final rule emphasized the importance for carriers
and first responders to have first-hand, up-to-date, technical and
emergency response information for hazardous materials to minimize the
consequences and protect property and life where possible in the event
of emergency incidents. This rulemaking action was issued as a result
of the investigation by the National Transportation Safety Board (NTSB)
of an accident which occurred near Odessa, Delaware in October 1982.
Following the investigation, the NTSB issued Safety Recommendation I-
83-2, which among other provisions, recommended that RSPA, ``Determine
by mode of transportation the feasibility of requiring comprehensive
product-specific emergency response information, such as Material
Safety Data Sheets, to be appended to shipping documents for hazardous
materials.'' \1\ The requirements issued in the final rule were
``intended to provide specific information relative to the hazards of
the materials being transported and provide immediate initial emergency
response guidance until further specific information can be obtained
from the shipper or others relative to long-term mitigation actions.''
\2\
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    \1\ http://www.ntsb.gov/safety/safety-recs/recletters/I83_2.pdf.
    \2\ 54 FR 27142 (HM-126C).
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Current Requirements

    With limited exceptions, the HMR require shipments of hazardous
materials to be accompanied by shipping papers and other documentation
designed to communicate to transport workers and emergency responders
the hazards associated with a specific shipment. This information must
include the immediate hazard to health; risks of fire or explosion;
immediate precautions to be taken in the event of an accident;
immediate methods for handling fires; initial methods for handling
spills or leaks in the absence of fire; and preliminary first aid
measures. The information must be in writing, in English, and presented
on a shipping paper or related shipping document. The offeror of a
hazardous material is responsible for ensuring the emergency response
information is current, correct, and accurate. Re-offerors are
permitted to rely on previous data provided they take no intermediate
action, such as blending or mixing the material.
    A delay or improper response due to a lack of accurate or timely
emergency response information may place emergency response personnel,
transportation workers, and the general public or the environment at
increased risk. Expeditious identification of the hazards and proper
instructions for appropriate handling and clean up associated with
specific hazardous materials is critical to quickly mitigating the
consequences of unintended releases of hazardous materials and other
incidents.
    Section 172.600(b) of the HMR requires persons who offer for
transportation, accept for transportation, transfer, or otherwise
handle hazardous materials during transportation to provide emergency
response information including an emergency response telephone number.
Therefore, the responsibility to provide emergency response information
is not solely that of an offeror. This responsibility is shared by
those who offer, accept, transfer, or otherwise handle hazardous
materials during transportation and must be completed prior to offering
hazardous materials into transportation. A current safety data sheet
(SDS) that includes accurate emergency response

information for the product being shipped, although not required, is
one form of information that may be used to satisfy the emergency
response information requirements.
    Section 172.602(a)(1) requires that the emergency response
information contain the basic description and technical name of the
hazardous material as required by Sec. Sec.  172.202 and 172.203(k).
Section 172.602(b)(3) requires that the emergency response information
be presented (i) on a shipping paper; (ii) in a document, other than a
shipping paper, that includes both the basic description and technical
name of the hazardous material (e.g. safety data sheet); or (iii)
related to the information on a shipping paper, in a separate document
(e.g., an emergency response guidance document such as the most current
revision of the Emergency Response Guidebook (ERG)), in a manner that
cross references the description of the hazardous material on the
shipping paper with the emergency response information contained in the
document. If a guide number page from the ERG is used, it must include
the basic description and, if applicable, the technical name of the
hazardous material. If the entire ERG is present, however, the
requirements of Sec.  172.602 are satisfied.
    Emergency response information must also be immediately available
for use. Section 172.600(c) requires any person who offers, accepts,
transfers or otherwise handles hazardous materials during
transportation not do so unless emergency response information is
immediately available for use at all times the hazardous material is
present. Additionally, emergency response information, including the
emergency response telephone number, must be immediately available to
any person who, as a representative of a Federal, State or local
government agency, responds to an incident involving a hazardous
material, or is conducting an investigation which involves a hazardous
material. Section 172.602(c) prescribes the maintenance of emergency
response information. This information must be immediately accessible
to train crew personnel, drivers of motor vehicles, flight crew
members, and bridge personnel on vessels for use in the event of
incidents involving hazardous materials. Carriers must maintain
emergency response information in the same manner as prescribed for
shipping papers (Subpart C of Part 172 of the HMR).
    Emergency response information must be accompanied by an emergency
response telephone number in accordance with Sec.  172.604. This
telephone number must be monitored at all times the hazardous material
is in transportation, including storage incidental to transportation.
The telephone number must be of a person who is either knowledgeable of
the hazardous material being shipped and has comprehensive emergency
response and incident mitigation information for that material, or has
immediate access to a person who possess such knowledge and
information.

NTSB Safety Recommendation R-14-18

    As a result of the November 30, 2012 accident in which a
Consolidated Rail Corporation train containing hazardous materials
derailed, spilling vinyl chloride into Mantua Creek in Paulsboro, New
Jersey, the NTSB issued a number of new Safety Recommendations. Among
the recommendations issued to PHMSA was R-14-18, which urged PHMSA to
``take action to ensure that emergency response information carried by
train crews is consistent with and is at least as protective as
existing emergency response guidance provided in the Emergency Response
Guidebook.'' \3\ We are considering possible alternatives, including
regulatory action, to affect this recommendation.
---------------------------------------------------------------------------

    \3\ http://phmsa.dot.gov/pv_obj_cache/pv_obj_id_F69209B2F102C36FDEBED674D65AC72854380300/filename/NTSB_R-14-18_to-21_(8-22-14).pdf.
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Conclusion

    Emergency response information is a critical component of hazardous
materials safety. The responsibility to provide accurate and timely
information is a shared responsibility for all persons involved in the
transportation of hazardous materials. It is a shipper's responsibility
to provide accurate emergency response information that is consistent
with both the information provided on a shipping paper and the material
being transported. Likewise, re-offerors of hazardous materials must
ensure that this information can be verified to be accurate,
particularly if the material is altered, mixed or otherwise repackaged
prior to being placed back into transportation. In addition, carriers
must ensure that emergency response information is maintained
appropriately, is accessible and can be communicated immediately in the
event of a hazardous materials incident. Fulfilling these
responsibilities is critical in reducing the severity of a hazardous
materials incident and reduces the risk to emergency response
personnel, transportation workers, and the general public.

    Issued in Washington, DC on April 17, 2015.
Timothy P. Butters,
Acting Administrator, Pipeline and Hazardous Materials Safety
Administration.
[FR Doc. 2015-09436 Filed 4-22-15; 8:45 am]
 BILLING CODE 4910-60-P


[Federal Register Volume 84, Number 21 (Thursday, January 31, 2019)]
[Notices]
[Pages 847-854]
[FR Doc No: 2019-00476]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-84966; File No. SR-CboeBZX-2018-089]

Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To List
and Trade Shares of the VanEck Vectors AMT-Free Intermediate Municipal
Index ETF, VanEck Vectors AMT-Free Long Municipal Index ETF, VanEck
Vectors AMT-Free Short Municipal Index ETF, VanEck Vectors High-Yield
Municipal Index ETF, and VanEck Vectors Pre-Refunded Municipal Index
ETF, Each a Series of the VanEck Vectors ETF Trust, Under Rule
14.11(c)(4) (Index Fund Shares)

December 26, 2018.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on December 18, 2018, Cboe BZX Exchange, Inc. (the ``Exchange'' or
``BZX'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
below, which Items have been prepared by the Exchange. The Exchange
filed the proposal as a ``non-controversial'' proposed rule change
pursuant to Section 19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-
4(f)(6) thereunder.\4\ The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to list and trade Shares of the following
series of the Trust, that do not otherwise meet the standards set forth
under BZX Rule 14.11(c)(4)(B)(i)(b), under BZX Rule 14.11(c)(4),\5\
which governs the listing and trading of index fund shares based on
fixed income securities indices: VanEck Vectors AMT-Free Intermediate
Municipal Index ETF; VanEck Vectors AMT-Free Long Municipal Index ETF;
VanEck Vectors AMT-Free Short Municipal Index ETF; VanEck Vectors High-
Yield Municipal Index ETF and VanEck Vectors Pre-Refunded Municipal
Index ETF (each a ``Fund'' and, collectively, the ``Funds'').\6\
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    \5\ The Commission approved BZX Rule 14.11(c) in Securities
Exchange Act Release No. 65225 (August 30, 2011), 76 FR 55148
(September 6, 2011) (SR-BATS-2011-018).
    \6\ The Exchange notes that the Commission previously approved a
proposal to list and trade the Shares on Arca. See Securities
Exchange Act Release No. 82295 (December 12, 2017), 82 FR 60056
(December 18, 2017) (SR-NYSEArca-2017-56) (the ``Prior Proposal'').
This proposal is substantively identical to the Prior Proposal as it
relates to the Funds and the Shares and the issuer represents that
all material representations contained within the Prior Proposal
remain true. As further described below, the Exchange believes that
its surveillance procedures are adequate to properly monitor the
trading of the Shares on the Exchange during all trading sessions
and to deter and detect violations of Exchange rules and the
applicable federal securities laws. Trading of the Shares through
the Exchange will be subject to the Exchange's surveillance
procedures for derivative products, including Index Fund Shares.
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    The text of the proposed rule change is available on the Exchange's
website (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx),
at the Exchange's Office of the Secretary, and at the Commission's
Public Reference Room.

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

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

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

1. Purpose
    The Exchange proposes to list and trade Shares of the following
series of the Trust, that do not otherwise meet the standards set forth
under BZX Rule 14.11(c)(4)(B)(i)(b), under BZX Rule 14.11(c)(4),\7\
which governs the listing and trading of index fund shares based on
fixed income securities indices: VanEck Vectors AMT-Free Intermediate
Municipal Index ETF; VanEck Vectors AMT-Free Long Municipal Index ETF;
VanEck Vectors AMT-Free Short Municipal Index ETF; VanEck Vectors High-
Yield Municipal Index ETF and VanEck Vectors Pre-Refunded

Municipal Index ETF (each a ``Fund'' and, collectively, the
``Funds'').\8\
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    \7\ The Commission approved BZX Rule 14.11(c) in Securities
Exchange Act Release No. 65225 (August 30, 2011), 76 FR 55148
(September 6, 2011) (SR-BATS-2011-018).
    \8\ The Exchange notes that the Commission previously approved a
proposal to list and trade the Shares on Arca. See Securities
Exchange Act Release No. 82295 (December 12, 2017), 82 FR 60056
(December 18, 2017) (SR-NYSEArca-2017-56) (the ``Prior Proposal'').
This proposal is substantively identical to the Prior Proposal as it
relates to the Funds and the Shares and the issuer represents that
all material representations contained within the Prior Proposal
remain true. As further described below, the Exchange believes that
its surveillance procedures are adequate to properly monitor the
trading of the Shares on the Exchange during all trading sessions
and to deter and detect violations of Exchange rules and the
applicable federal securities laws. Trading of the Shares through
the Exchange will be subject to the Exchange's surveillance
procedures for derivative products, including Index Fund Shares.
---------------------------------------------------------------------------

    The Exchange notes that the Shares are currently listed on Arca and
the Shares are already trading on the Exchange pursuant to unlisted
trading privileges, as provided in Rule 14.11(j).
    The Shares are offered by the Trust, which was established as a
Delaware statutory trust on March 15, 2001. The Trust is registered
with the Commission as an open-end investment company and has filed a
registration statement on behalf of the Funds on Form N-1A
(``Registration Statement'') with the Commission.\9\ All statements and
representations made in this filing regarding (a) the description of
each Fund's index, portfolio, or reference asset, (b) limitations on
index or portfolio holdings or reference assets, or (c) the
applicability of Exchange rules and surveillance procedures shall
constitute continued listing requirements for listing the Shares on the
Exchange.
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    \9\ See Registration Statement on Form N-1A for the Trust, dated
September 1, 2018 (File Nos. 333-123257 and 811-10325). The
descriptions of the Funds and the Shares contained herein are based,
in part, on information in the Registration Statement. The
Commission has issued an order granting certain exemptive relief to
the Trust under the Investment Company Act of 1940 (15 U.S.C. 80a-1)
(``1940 Act'') (the ``Exemptive Order''). See Investment Company Act
Release No. 28021 (October 24, 2007) (File No. 812-13426).
---------------------------------------------------------------------------

Description of the Shares and the Funds
    Van Eck Associates Corporation is the investment adviser
(``Adviser'') to the Funds.\10\ The Adviser also serves as the
administrator for the Funds (the ``Administrator''). The Bank of New
York Mellon serves as the custodian (``Custodian'') and transfer agent
(``Transfer Agent'') for the Funds. Van Eck Securities Corporation (the
``Distributor'') is the distributor of the Shares. Barclays Inc. is the
index provider (``Index Provider'').
---------------------------------------------------------------------------

    \10\ An investment adviser to an open-end fund is required to be
registered under the Investment Advisers Act of 1940 (the ``Advisers
Act''). As a result, the Adviser and its 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 all 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.
---------------------------------------------------------------------------

VanEck Vectors AMT-Free Intermediate Municipal Index ETF
    According to its prospectus, the VanEck Vectors AMT-Free
Intermediate Municipal Index ETF seeks to replicate as closely as
possible, before fees and expenses, the price and yield performance of
the Bloomberg Barclays AMT-Free Intermediate Continuous Municipal
Index. The Bloomberg Barclays AMT-Free Intermediate Continuous
Municipal Index is a market size weighted index comprised of publicly
traded municipal bonds that cover the U.S. dollar denominated
intermediate term tax-exempt bond market.
    As of November 30, 2018, the Bloomberg Barclays AMT-Free
Intermediate Continuous Municipal Index included 17,860 component fixed
income municipal bond securities from issuers in 53 different states or
U.S. territories. The most heavily weighted security in the index
represented less than 0.25% of the total weight of the index and the
aggregate weight of the top five most heavily weighted securities in
the index represented approximately 0.77% of the total weight of the
index. Approximately 9.71% of the weight of the components in the index
had a minimum original principal amount outstanding of $100 million or
more. In addition, the total dollar amount outstanding of issues in the
index was approximately $355,526,745,016 and the average dollar amount
outstanding of issues in the index was approximately $19,906,313.
    Under normal market conditions, the VanEck Vectors AMT-Free
Intermediate Municipal Index ETF will invest at least 80% of its total
assets in fixed income securities that comprise the Bloomberg Barclays
AMT-Free Intermediate Continuous Municipal Index. With respect to the
remaining 20% of its assets, the VanEck Vectors AMT-Free Intermediate
Municipal Index ETF may invest in municipal bonds not included in the
Bloomberg Barclays AMT-Free Intermediate Continuous Municipal Index,
money market instruments (including repurchase agreements or other
funds which invest exclusively in money market instruments),
convertible securities, exchange-traded warrants, participation notes,
structured notes, cleared or non-cleared index, interest rate or credit
default swap agreements, and, to the extent permitted by the 1940 Act,
affiliated and unaffiliated funds, such as open-end or closed-end
management investment companies, including other exchange-traded funds.
In addition, the VanEck Vectors AMT-Free Intermediate Municipal Index
ETF may invest up to 20% of its assets in when-issued securities in
order to manage cash flows as well as exchange-traded futures contracts
and exchange-traded options thereon (all such exchange-traded futures
contracts and exchange-traded options thereon will be traded on an
exchange that is a member of the Intermarket Surveillance Group
(``ISG'') or with which the Exchange has in place a comprehensive
surveillance sharing agreement), together with positions in cash and
money market instruments, to simulate full investment in the Bloomberg
Barclays AMT-Free Intermediate Continuous Municipal Index.
Index Overview
    At least 90% of the weight of the Bloomberg Barclays AMT-Free
Intermediate Continuous Municipal Index will be comprised of securities
that that have an outstanding par value of at least $7 million and were
issued as part of a transaction of at least $75 million.
VanEck Vectors AMT-Free Long Municipal Index ETF
    According to its prospectus, the VanEck Vectors AMT-Free Long
Municipal Index ETF seeks to replicate as closely as possible, before
fees and expenses, the price and yield performance of the Bloomberg
Barclays AMT-Free Long Continuous Municipal Index. The Bloomberg
Barclays AMT-Free Long Continuous Municipal Index is a market size
weighted index comprised of publicly traded municipal bonds that cover
the U.S. dollar denominated long-term tax-exempt bond market.
    As of November 30, 2018, the Bloomberg Barclays AMT-Free Long
Continuous Municipal Index included

8,152 component fixed income municipal bond securities from issuers in
52 different states or U.S. territories. The most heavily weighted
security in the index represented 0.27% of the total weight of the
index and the aggregate weight of the top five most heavily weighted
securities in the index represented approximately 1.24% of the total
weight of the index. Approximately 13.96% of the weight of the
components in the index had a minimum original principal amount
outstanding of $100 million or more. In addition, the total dollar
amount outstanding of issues in the index was approximately
$291,429,759,251and the average dollar amount outstanding of issues in
the index was approximately $3,574,949,480.
    Under normal market conditions, the VanEck Vectors AMT-Free Long
Municipal Index ETF will invest at least 80% of its total assets in
fixed income securities that comprise the Bloomberg Barclays AMT-Free
Long Continuous Municipal Index. With respect to the remaining 20% of
its assets, the VanEck Vectors AMT-Free Long Municipal Index ETF may
invest in municipal bonds not included in the Bloomberg Barclays AMT-
Free Long Continuous Municipal Index, money market instruments
(including repurchase agreements or other funds which invest
exclusively in money market instruments), convertible securities,
exchange-traded warrants, participation notes, structured notes,
cleared or non-cleared index, interest rate or credit default swap
agreements, and, to the extent permitted by the 1940 Act, affiliated
and unaffiliated funds, such as open- end or closed-end management
investment companies, including other exchange-traded funds. In
addition, the VanEck Vectors AMT-Free Long Municipal Index ETF may
invest up to 20% of its assets in when-issued securities in order to
manage cash flows as well as exchange-traded futures contracts and
exchange-traded options thereon (all such exchange-traded futures
contracts and exchange-traded options thereon will be traded on an
exchange that is a member of the ISG or with which the Exchange has in
place a comprehensive surveillance sharing agreement), together with
positions in cash and money market instruments, to simulate full
investment in the Bloomberg Barclays AMT-Free Long Continuous Municipal
Index.
Index Overview
    At least 90% of the weight of the Bloomberg Barclays AMT-Free Long
Continuous Municipal Index will be comprised of securities that have an
outstanding par value of at least $7 million and were issued as part of
a transaction of at least $75 million.
VanEck Vectors AMT-Free Short Municipal Index ETF
    According to its prospectus, the VanEck Vectors AMT-Free Short
Municipal Index ETF seeks to replicate as closely as possible, before
fees and expenses, the price and yield performance of the Bloomberg
Barclays AMT-Free Short Continuous Municipal Index. The Bloomberg
Barclays AMT-Free Short Continuous Municipal Index is a market size
weighted index comprised of publicly traded municipal bonds that cover
the U.S. dollar denominated short-term tax-exempt bond market.
    As of November 30, 2018, the Bloomberg Barclays AMT-Free Short
Continuous Municipal Index included 7,482component fixed income
municipal bond securities from issuers in 48 different states or U.S.
territories. The most heavily weighted security in the index
represented approximately .47% of the total weight of the index and the
aggregate weight of the top five most heavily weighted securities in
the index represented approximately 2.14% of the total weight of the
index. Approximately 17.16% of the weight of the components in the
index had a minimum original principal amount outstanding of $100
million or more. In addition, the total dollar amount outstanding of
issues in the index was approximately $167,594,060,156 and the average
dollar amount outstanding of issues in the index was approximately
$22,399,634.
    Under normal market conditions, the VanEck Vectors AMT-Free Short
Municipal Index ETF will invest at least 80% of its total assets in
fixed income securities that comprise the Bloomberg Barclays AMT-Free
Short Continuous Municipal Index. With respect to the remaining 20% of
its assets, the VanEck Vectors AMT-Free Short Municipal Index ETF may
invest in municipal bonds not included in the Bloomberg Barclays AMT-
Free Short Continuous Municipal Index, money market instruments
(including repurchase agreements or other funds which invest
exclusively in money market instruments), convertible securities,
exchange-traded warrants, participation notes, structured notes,
cleared or non-cleared index, interest rate or credit default swap
agreements, and, to the extent permitted by the 1940 Act, affiliated
and unaffiliated funds, such as open- end or closed-end management
investment companies, including other exchange-traded funds. In
addition, the VanEck Vectors AMT-Free Short Municipal Index ETF may
invest up to 20% of its assets in when-issued securities in order to
manage cash flows as well as exchange-traded futures contracts and
exchange-traded options thereon (all such exchange-traded futures
contracts and exchange-traded options thereon will be traded on an
exchange that is a member of the ISG or with which the Exchange has in
place a comprehensive surveillance sharing agreement), together with
positions in cash and money market instruments, to simulate full
investment in the Bloomberg Barclays AMT-Free Short Continuous
Municipal Index.
Index Overview
    At least 90% of the weight of the Bloomberg Barclays AMT-Free Short
Continuous Municipal Index will be comprised of securities that have an
outstanding par value of at least $7 million and were issued as part of
a transaction of at least $75 million.
VanEck Vectors High-Yield Municipal Index ETF
    According to its prospectus, the VanEck Vectors High-Yield
Municipal Index ETF seeks to replicate as closely as possible, before
fees and expenses, the price and yield performance of the Bloomberg
Barclays Municipal Custom High Yield Composite Index. The Bloomberg
Barclays Municipal Custom High Yield Composite Index is a market size
weighted index composed of publicly traded municipal bonds that cover
the U.S. dollar denominated high yield long-term tax-exempt bond
market. The Bloomberg Barclays Municipal Custom High Yield Composite
Index is calculated using a market value weighting methodology,
provided that the total allocation to issuers from each individual
territory of the United States (including Puerto Rico, Guam, the U.S.
Virgin Islands, American Samoa and the Northern Mariana Islands) does
not exceed 4%. The Bloomberg Barclays Municipal Custom High Yield
Composite Index tracks the high yield municipal bond market with a 75%
weight in non-investment grade municipal bonds and a targeted 25%
weight in Baa/BBB rated investment grade municipal bonds.
    As of November 30, 2018, the Bloomberg Barclays Municipal Custom
High Yield Composite Index included 6,557component fixed income
municipal bond securities from issuers in 56 different states or U.S.
territories. The most heavily weighted security in the index
represented approximately 1.14% of the total weight of the index and
the aggregate weight of the top five

most heavily weighted securities in the index represented approximately
4.03% of the total weight of the index. Approximately 22.52% of the
weight of the components in the index had a minimum original principal
amount outstanding of $100 million or more. In addition, the total
dollar amount outstanding of issues in the index was approximately
$308,369,566,945 and the average dollar amount outstanding of issues in
the index was approximately $47,029,063.
    Under normal market conditions, the VanEck Vectors High-Yield
Municipal Index ETF will invest at least 80% of its total assets in
securities that comprise the Bloomberg Barclays Municipal Custom High
Yield Composite Index. With respect to the remaining 20% of its assets,
the VanEck Vectors High-Yield Municipal Index ETF may invest in
municipal bonds not included in the Bloomberg Barclays Municipal Custom
High Yield Composite Index, money market instruments (including
repurchase agreements or other funds which invest exclusively in money
market instruments), convertible securities, exchange-traded warrants,
participation notes, structured notes, cleared or non-cleared index,
interest rate or credit default swap agreements, and, to the extent
permitted by the 1940 Act, affiliated and unaffiliated funds, such as
open- end or closed-end management investment companies, including
other exchange-traded funds. In addition, the VanEck Vectors High-Yield
Municipal Index ETF may invest up to 20% of its assets in when-issued
securities in order to manage cash flows as well as exchange-traded
futures contracts and exchange-traded options thereon (all such
exchange-traded futures contracts and exchange-traded options thereon
will be traded on an exchange that is a member of the ISG or with which
the Exchange has in place a comprehensive surveillance sharing
agreement), together with positions in cash and money market
instruments, to simulate full investment in the Bloomberg Barclays
Municipal Custom High Yield Composite Index.
Index Overview
    The Bloomberg Barclays Municipal Custom High Yield Composite Index
is comprised of three total return, market size weighted benchmark
indices with weights as follows: (i) 50% weight in Muni High Yield/$100
Million Deal Size Index, (ii) 25% weight in Muni High Yield/Under $100
Million Deal Size Index, and (iii) 25% weight in Muni Baa Rated/$100
Million Deal Size Index. At least 90% of the weight of the Muni High
Yield/$100 Million Deal Size Index will be comprised of securities that
have an outstanding par value of at least $3 million and were issued as
part of a transaction of at least $100 million. At least 90% of the
weight of the Muni High Yield/Under $100 Million Deal Size Index will
be comprised of securities that have an outstanding par value of at
least $3 million and were issued as part of a transaction of under $100
million but over $20 million. At least 90% of the weight of the Muni
Baa Rated/$100 Million Deal Size Index will be comprised of securities
that have an outstanding par value of at least $7 million and were
issued as part of a transaction of at least $100 million.
VanEck Vectors Pre-Refunded Municipal Index ETF
    According to its prospectus, the VanEck Vectors Pre-Refunded
Municipal Index ETF seeks to replicate as closely as possible, before
fees and expenses, the price and yield performance of the Bloomberg
Barclays Municipal Pre-Refunded--Treasury-Escrowed Index. The Bloomberg
Barclays Municipal Pre-Refunded--Treasury-Escrowed Index is a market
size weighted index comprised of publicly traded municipal bonds that
cover the U.S. dollar denominated tax-exempt bond market. The Bloomberg
Barclays Municipal Pre-Refunded--Treasury-Escrowed Index is comprised
of pre-refunded and/or escrowed-to-maturity municipal bonds.
    As of November 30 2018, the Bloomberg Barclays Municipal Pre-
Refunded Treasury-Escrowed Index included 3,076 component fixed income
municipal bond securities from issuers in 45 different states or U.S.
territories. The most heavily weighted security in the index
represented approximately 0.54% of the total weight of the index and
the aggregate weight of the top five most heavily weighted securities
in the index represented approximately 2.27% of the total weight of the
index. Approximately 10.46% of the weight of the components in the
index had a minimum original principal amount outstanding of $100
million or more. In addition, the total dollar amount outstanding of
issues in the index was approximately $77,017,953,117 and the average
dollar amount outstanding of issues in the index was approximately
$25,038,346.
    Under normal market conditions, the VanEck Vectors Pre-Refunded
Municipal Index ETF will invest at least 80% of its total assets in
securities that comprise the Bloomberg Barclays Municipal Pre-
Refunded--Treasury-Escrowed Index. With respect to the remaining 20% of
its assets, the VanEck Vectors Pre-Refunded Municipal Index ETF may
invest in municipal bonds not included in the Bloomberg Barclays
Municipal Pre-Refunded--Treasury-Escrowed Index, money market
instruments (including repurchase agreements or other funds which
invest exclusively in money market instruments), convertible
securities, exchange-traded warrants, participation notes, structured
notes, cleared or non-cleared index, interest rate or credit default
swap agreements, and, to the extent permitted by the 1940 Act,
affiliated and unaffiliated funds, such as open-end or closed-end
management investment companies, including other exchange-traded funds.
In addition, the VanEck Vectors Pre-Refunded Municipal Index ETF may
invest up to 20% of its assets in when-issued securities in order to
manage cash flows as well as exchange-traded futures contracts and
exchange-traded options thereon (all such exchange-traded futures
contracts and exchange-traded options thereon will be traded on an
exchange that is a member of the ISG or with which the Exchange has in
place a comprehensive surveillance sharing agreement), together with
positions in cash and money market instruments, to simulate full
investment in the Bloomberg Barclays Municipal Pre-Refunded--Treasury-
Escrowed Index.
Index Overview
    At least 90% of the weight of the Bloomberg Barclays Municipal Pre-
Refunded--Treasury-Escrowed Index will be comprised of securities that
have an outstanding par value of at least $7 million and were issued as
part of a transaction of at least $75 million.
    Based on the characteristics of each index as described above, the
Exchange believes it is appropriate to facilitate the listing and
trading of the Funds. Each index underlying the Funds satisfies all of
the generic listing requirements for the Funds based on a fixed income
index, except for the minimum principal amount outstanding requirement
of BZX Rule 14.11(c)(4)(B)(i)(b). A fundamental purpose behind the
minimum principal amount outstanding requirement is to ensure that
component securities of an index are sufficiently liquid such that the
potential for index manipulation is reduced.
    As discussed above, the Exchange believes that each index
underlying the Funds is sufficiently broad-based to deter potential
manipulation. Each index underlying the Funds currently includes, on
average, more than 10,012 component securities. Whereas the generic
listing rules require that an

index contain securities from a minimum of 13 non-affiliated
issuers,\11\ each index underlying the Funds currently includes
securities issued by municipal entities in at least 45 states or U.S.
territories. Further, whereas the generic listing rules permit a single
component security to represent up to 30% of the weight of an index and
the top five component securities to, in aggregate, represent up to 65%
of the weight of an index,\12\ no single security currently represents
more than approximately 1.5% of the weight of any index underlying the
Funds. Similarly, the aggregate weight of the five most heavily
weighted securities in each index does not exceed approximately 5%. The
Exchange believes that this significant diversification and the lack of
concentration among constituent securities provides a strong degree of
protection against index manipulation.
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    \11\ See BZX Rule 14.11(c)(4)(B)(i)(e).
    \12\ See BZX Rule 14.11(c)(4)(B)(i)(d).
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    On a continuous basis, each index underlying a Fund will (i)
contain at least 500 component securities and (ii) comply with the
parameters described under the heading ``Index Overview'' contained in
the description of its related Fund set forth above.\13\ In addition,
the Exchange represents that: (1) Except for BZX Rule
14.11(c)(4)(B)(i)(b), each index currently satisfies all of the generic
listing standards under BZX Rule 14.11(c)(4); (2) the continued listing
standards under BZX Rule 14.11(c) applicable to index fund shares shall
apply to the Shares of each Fund; and (3) the issuer of each Fund is
required to comply with Rule 10A-3 \14\ under the Act for the initial
and continued listing of the shares of each Fund. In addition, the
Exchange represents that the Shares of the Funds will comply with all
other requirements applicable to index fund shares including, but not
limited to, requirements relating to the dissemination of key
information such as the value of the Indices and the Intraday
Indicative Value, rules governing the trading of equity securities,
trading hours, trading halts, surveillance, and the information
circular, as set forth in Exchange rules applicable to index fund
shares and the orders approving such rules.
---------------------------------------------------------------------------

    \13\ The Commission has previously approved a proposed rule
change relating to the listing and trading on the Exchange of a
series of Funds based on a municipal bond index that did not satisfy
BZX Rule 14.11(c)(4)(B)(i)(b) provided that such municipal bond
index contained at least 500 component securities on a continuous
basis. See Securities Exchange Act Release No. 78329 (July 14,
2016), 81 FR 47217 (July 20, 2016) (SR-BatsBZX-2016-01) (order
approving proposed rule change relating to the listing and trading
of Shares of the Following Series of VanEck Vectors ETF Trust:
VanEck Vectors AMT-Free 6-8 Year Municipal Index ETF; VanEck Vectors
AMT-Free 8-12 Year Municipal Index ETF; and VanEck Vectors AMT-Free
12-17 Year Municipal Index ETF).
    \14\ 17 CFR 240.10A-3.
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    The current value for each index underlying the Funds is widely
disseminated by one or more major market data vendors at least once per
day. The IIV for shares of each Fund is disseminated by one or more
major market data vendors, updated at least every 15 seconds during the
Exchange's Regular Trading Hours \15\. In addition, the portfolio of
securities held by each Fund is disclosed daily on each Fund's website.
Further, the website for each Fund will contain the applicable fund's
prospectus and additional data relating to net asset value (``NAV'')
and other applicable quantitative information. The Exchange has
obtained a representation from the issuer that the applicable NAV per
share will be calculated daily will be made available to all market
participants at the same time. None of the indices underlying the Funds
is maintained by a broker-dealer.
---------------------------------------------------------------------------

    \15\ Regular Trading Hours are 9:30 a.m. to 4:00 p.m. Eastern
Time.
---------------------------------------------------------------------------

    Further, the Exchange's existing rules require that the Funds
notify the Exchange of any material change to the methodology used to
determine the composition of the index. Therefore, if the methodology
of an index underlying the Funds was changed in a manner that would
materially alter its existing composition, the Exchange would have
advance notice and would evaluate the index, as modified, to determine
whether it was sufficiently broad-based and well diversified.
    Price information regarding municipal bonds, convertible
securities, and non- exchange traded assets, including investment
companies, derivatives, money market instruments, repurchase
agreements, structured notes, participation notes, and when-issued
securities is available from third party pricing services and major
market data vendors. For exchange-traded assets, including investment
companies, futures, warrants, and options, such intraday information is
available directly from the applicable listing exchange.
Availability of Information
    Each Fund's website is publicly available and includes a form of
the prospectus for the Funds that may be downloaded. The website will
include additional quantitative information updated on a daily basis,
including, for the Fund: (1) The prior business day's reported NAV,
daily trading volume, 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. Daily trading volume
information for the Funds will also be available in the financial
section of newspapers, through subscription services such as Bloomberg,
Thomson Reuters, and International Data Corporation, which can be
accessed by authorized participants and other investors, as well as
through other electronic services, including major public websites. On
each business day, before commencement of trading in Shares during
Regular Trading Hours on the Exchange, each Fund will disclose on its
website the identities and quantities of the portfolio of securities
and other assets in the daily disclosed portfolio held by the Funds
that formed the basis for each Fund's calculation of NAV at the end of
the previous business day. The daily disclosed portfolio will include,
as applicable: The ticker symbol; CUSIP number or other identifier, if
any; a description of the holding (including the type of holding, such
as the type of swap); the identity of the security, index or other
asset or instrument underlying the holding, if any; for options, the
option strike price; 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 the percentage weighting of the
holding in each Fund's portfolio. The website and information will be
publicly available at no charge. The value, components, and percentage
weightings of each of the Indices will be calculated and disseminated
at least once daily and will be available from major market data
vendors. Rules governing the Indices are available on Barclays' website
and in each respective Fund's prospectus.
    In addition, for each Fund, an estimated value, defined in BZX Rule
14.11(c)(6)(A) as the ``Intraday Indicative Value,'' that reflects an
estimated intraday value of each Fund's portfolio, will be
disseminated. Moreover, the Intraday Indicative Value will be based
upon the current value for the components of the daily disclosed
portfolio and will be updated and widely disseminated by one or more
major market data vendors at least every 15 seconds during the
Exchange's

Regular Trading Hours. In addition, the quotations of certain of each
Fund's holdings may not be updated during U.S. trading hours if updated
prices cannot be ascertained.
    The dissemination of the Intraday Indicative Value, together with
the daily disclosed portfolio, will allow investors to determine the
value of the underlying portfolio of the Funds on a daily basis and
provide a close estimate of that value throughout the trading day.
    Quotation and last sale information for the Shares of each Fund
will be available via the CTA high speed line. Trade price and other
information relating to municipal bonds is available through the
Municipal Securities Rulemaking Board's Electronic Municipal Market
Access (``EMMA'') system. For exchange-traded assets, including
investment companies, futures, warrants, and options, such intraday
information is available directly from the applicable listing exchange.
Initial and Continued Listing
    The Shares of each Fund will conform to the initial and continued
listing criteria under BZX Rule 14.11(c)(4), except for those set forth
in 14.11(c)(4)(B)(i)(b). The Exchange represents that, for initial and/
or continued listing, the Funds and the Trust must be in compliance
with Rule 10A-3 under the Act. \16\ A minimum of 100,000 Shares of each
Fund will be outstanding at the commencement of trading on the
Exchange. The Exchange will obtain a representation from the issuer of
the Shares that the NAV per Share for each Fund will be calculated
daily and will be made available to all market participants at the same
time.
---------------------------------------------------------------------------

    \16\ 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 the Funds. The Exchange will halt trading in
the Shares under the conditions specified in BZX Rule 11.18. 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 financial instruments composing the daily
disclosed portfolio of the Funds; 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 14.11(c)(1)(B)(iv), which sets forth circumstances
under which Shares of a Fund may be halted.
Trading Rules
    The Exchange deems the Shares to be equity securities, thus
rendering trading in the Shares subject to the Exchange's existing
rules governing the trading of equity securities. The Exchange will
allow trading in the Shares from 8:00 a.m. until 5:00 p.m. Eastern Time
and has the appropriate rules to facilitate transactions in the Shares
during all trading sessions. As provided in BZX Rule 11.11(a), the
minimum price variation for quoting and entry of orders in securities
traded on the Exchange is $0.01, with the exception of securities that
are priced less than $1.00, for which the minimum price variation for
order entry is $0.0001.
Surveillance
    The Exchange believes that its surveillance procedures are adequate
to properly monitor the trading of the Shares on the Exchange during
all trading sessions and to deter and detect violations of Exchange
rules and the applicable federal securities laws. Trading of the Shares
through the Exchange will be subject to the Exchange's surveillance
procedures for derivative products, including Index Fund Shares. The
issuer has represented to the Exchange that it will advise the Exchange
of any failure by a Fund to comply with the continued listing
requirements, and, pursuant to its obligations under Section 19(g)(1)
of the Exchange Act, the Exchange will surveil for compliance with the
continued listing requirements. If a Fund is not in compliance with the
applicable listing requirements, the Exchange will commence delisting
procedures for the Fund under Exchange Rule 14.12. The Exchange may
obtain information regarding trading in the Shares via the ISG, from
other exchanges that are members or affiliates of the ISG, or with
which the Exchange has entered into a comprehensive surveillance
sharing agreement.\17\ In addition, the Exchange is able to access, as
needed, trade information for certain fixed income instruments reported
to FINRA's Trade Reporting and Compliance Engine (``TRACE''). FINRA
also can access data obtained from the EMMA system relating to
municipal bond trading activity for surveillance purposes in connection
with trading in the Shares. In addition, the Exchange may obtain
information regarding trading in the Shares and the underlying shares
in exchange-traded investment companies, futures, options, and warrants
from markets or other entities that are members of ISG or with which
the Exchange has in place a comprehensive surveillance sharing
agreement. The Exchange prohibits the distribution of material non-
public information by its employees.
---------------------------------------------------------------------------

    \17\ 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 the Funds may trade on markets that are
members of ISG or with which the Exchange has in place a
comprehensive surveillance sharing agreement.
---------------------------------------------------------------------------

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 will discuss the following: (1) The procedures for purchases
and redemptions of Shares in Creation Units (and that Shares are not
individually redeemable); (2) BZX Rule 3.7, which imposes suitability
obligations on Exchange members with respect to recommending
transactions in the Shares to customers; (3) how information regarding
the Intraday Indicative Value is disseminated; (4) the risks involved
in trading the Shares during the Pre-Opening \18\ and After Hours
Trading Sessions \19\ 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.
---------------------------------------------------------------------------

    \18\ The Pre-Opening Session is from 8:00 a.m. to 9:30 a.m.
Eastern Time.
    \19\ The After Hours Trading Session is from 4:00 p.m. to 5:00
p.m. Eastern Time.
---------------------------------------------------------------------------

    In addition, the Information Circular will advise members, prior to
the commencement of trading, of the prospectus delivery requirements
applicable to the Funds. Members purchasing Shares from the Funds for
resale to investors will deliver a prospectus to such investors. The
Information Circular will also discuss any exemptive, no-action, and
interpretive relief granted by the Commission from any rules under the
Act.
    In addition, the Information Circular will reference that each Fund
is subject to various fees and expenses described in the Registration
Statement. The Information Circular will also disclose the trading
hours of the Shares of the Funds and the applicable NAV calculation
time for the Shares. The

Information Circular will disclose that information about the Shares of
the Funds will be publicly available on the Funds' website. In
addition, the Information Circular will reference that the Trust is
subject to various fees and expenses described in each Fund's
Registration Statement.
2. Statutory Basis
    The Exchange believes that the proposal is consistent with Section
6(b) of the Act \20\ in general and Section 6(b)(5) of the Act \21\ in
particular in that it is designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade, to remove impediments to and perfect the mechanism
of a free and open market and a national market system and, in general,
to protect investors and the public interest because, in addition to
the reasons laid out above, the Commission has previously approved the
Shares to list and trade on Arca and this proposal is substantively
identical to the Prior Proposal as it relates to the Funds and the
Shares and all material representations contained within the Prior
Proposal remain true.
---------------------------------------------------------------------------

    \20\ 15 U.S.C. 78f.
    \21\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange also believes that the proposed rule change is
designed to prevent fraudulent and manipulative acts and practices in
that the Shares of each Fund will be listed and traded on the Exchange
pursuant to the initial and continued listing criteria in BZX Rule
14.11(c). The Exchange believes that its surveillances, which generally
focus on detecting securities trading outside of their normal patterns
which could be indicative of manipulative or other violative activity,
and associated surveillance procedures are adequate to properly monitor
the trading of the Shares on the Exchange during all trading sessions
and to deter and detect violations of Exchange rules and the applicable
federal securities laws. The Exchange or FINRA, on behalf of the
Exchange, or both, will communicate as needed regarding trading in the
Shares of each Fund with other markets or other entities that are
members of the Intermarket Surveillance group (``ISG''), and may obtain
trading information regarding trading in the Shares from such markets
or entities. FINRA can also access data obtained from the EMMA system
relating to municipal bond trading activity for surveillance purposes
in connection with trading in the Shares. The Exchange or FINRA, on
behalf of the Exchange, are able to access, as needed, trade
information for certain fixed income securities held by a Fund reported
to FINRA's TRACE. In addition, the Exchange may obtain information
regarding trading in the Shares and the underlying shares in exchange-
traded investment companies, futures, options, and warrants from
markets or other entities that are members of ISG or with which the
Exchange has in place a comprehensive surveillance sharing agreement.
    As discussed above, the Exchange believes that each index
underlying the Funds is sufficiently broad-based to deter potential
manipulation. Each index underlying the Funds currently includes, on
average, more than 10,012 component securities. Whereas the generic
listing rules require that an index contain securities from a minimum
of 13 non-affiliated issuers,\22\ each index underlying the Funds
currently includes securities issued by municipal entities in at least
45 states or U.S. territories. Further, whereas the generic listing
rules permit a single component security to represent up to 30% of the
weight of an index and the top five component securities to, in
aggregate, represent up to 65% of the weight of an index,\23\ no single
security currently represents more than approximately 1.5% of the
weight of any index underlying the Funds. Similarly, the aggregate
weight of the five most heavily weighted securities in each index does
not exceed approximately 5%.
---------------------------------------------------------------------------

    \22\ See BZX Rule 14.11(c)(4)(B)(i)(e).
    \23\ See BZX Rule 14.11(c)(4)(B)(i)(d).
---------------------------------------------------------------------------

    On a continuous basis, each index underlying a Fund will (i)
contain at least 500 component securities and (ii) comply with the
parameters described under the heading ``Requirement for Index
Constituents'' contained in the description of its related Fund set
forth above.
    The value, components, and percentage weightings of each of the
Indices will be calculated and disseminated at least once daily and
will be available from major market data vendors. In addition, the
portfolio of securities held by the Funds will be disclosed on the
Funds' website at www.vaneck.com/etfs. The intraday indicative value
for Shares of the Funds will be disseminated by one or more major
market data vendors, updated at least every 15 seconds during Regular
Trading Hours. The Adviser represents that bonds that share similar
characteristics, as described above, tend to trade similarly to one
another; therefore, within these categories, the issues may be
considered fungible from a portfolio management perspective. Within a
single municipal bond issuer, Adviser represents that separate issues
by the same issuer are also likely to trade similarly to one another.
    The proposed rule change is designed to promote just and equitable
principles of trade and to protect investors and the public interest in
that a large amount of information will be publicly available regarding
the Funds and the Shares, thereby promoting market transparency. The
Funds' portfolio holdings will be disclosed on the Funds' website daily
after the close of trading on the Exchange and prior to the opening of
trading on the Exchange the following day. Moreover, the IIV will be
widely disseminated by one or more major market data vendors at least
every 15 seconds during Regular Trading Hours. The current value of
each of the Indices will be disseminated by one or more major market
data vendors at least once per day. Information regarding market price
and trading volume of the Shares will be continually available on a
real-time basis throughout the day on brokers' computer screens and
other electronic services, and quotation and last sale information will
be available via the CTA high-speed line. The website for the Funds
will include the prospectus for the Funds and additional data relating
to NAV and other applicable quantitative information. If the Exchange
becomes aware that the NAV is not being disseminated to all market
participants at the same time, it will halt trading in the Shares until
such time as the NAV is available to all market participants. With
respect to trading halts, the Exchange may consider all relevant
factors in exercising its discretion to halt or suspend trading in the
Shares of the Funds. Trading also may be halted because of market
conditions or for reasons that, in the view of the Exchange, make
trading in the Shares inadvisable. These may include: (1) The extent to
which trading is not occurring in the securities and/or the financial
instruments composing the daily disclosed portfolio of each 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 14.11(c)(1)(B)(iv), which sets
forth circumstances under which Shares of a Fund may be halted. If the
IIV of any of the Funds or value of the Indices are not being
disseminated as required, the Exchange may halt trading during the day
in which the interruption to the dissemination of the IIV or index
value occurs.

    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 exchange-traded funds that holds municipal bonds
and that will enhance competition among market participants, to the
benefit of investors and the marketplace. As noted above, the Exchange
has in place surveillance procedures relating to trading in the Shares
and may obtain information in the Shares and the underlying shares in
exchange-traded investment companies, futures, options, and warrants
via ISG from other exchanges that are members of ISG or with which the
Exchange has entered into a comprehensive surveillance sharing
agreement. In addition, investors will have ready access to information
regarding the IIV and quotation and last sale information for the
Shares.
    For the above reasons, the Exchange believes that the proposed rule
change is consistent with the requirements of Section 6(b)(5) of the
Act.

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

    The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purpose of the Act. The Exchange notes that the
proposed rule change, rather will facilitate the transfer from Arca and
listing of additional exchange-traded products on the Exchange, which
will enhance competition among listing venues, to the benefit of
issuers, investors, and the marketplace more broadly.

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

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

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

    Because the proposed rule change does not (i) significantly affect
the protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative for 30
days from the date on which it was filed, or such shorter time as the
Commission may designate, it has become effective pursuant to Section
19(b)(3)(A) of the Act \24\ and subparagraph (f)(6) of Rule 19b-4
thereunder.\25\
---------------------------------------------------------------------------

    \24\ 15 U.S.C. 78s(b)(3)(A).
    \25\ 17 CFR 240.19b-4(f)(6). In addition, Rule19b-4(f)(6)(iii)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of the proposed rule change, at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
---------------------------------------------------------------------------

    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \26\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \27\ permits the
Commission to designate a shorter time if such action is consistent
with the protection of investors and the public interest. The Exchange
has asked the Commission to waive the 30-day operative delay so that
the proposal may become operative upon filing. The Exchange states that
waiver of the 30-day operative delay would allow the Funds to transfer
listing to the Exchange as soon as is practicable and minimize the
amount of time that the Funds' listing venue will be in transition.
Additionally, the Exchange states that waiver will allow the Funds to
be listed on the Exchange in December 2018, which will allow the Funds
to have lower listing fees on a going forward basis, and to avoid
paying Arca's listing fees for 2019, which will be applied at the
beginning of January 2019. For these reasons, the Commission believes
that waiver of the 30-day operative delay is consistent with the
protection of investors and the public interest. Accordingly, the
Commission hereby waives the operative delay and designates the
proposed rule change operative upon filing.\28\
---------------------------------------------------------------------------

    \26\ 17 CFR 240.19b-4(f)(6).
    \27\ 17 CFR 240.19b-4(f)(6)(iii).
    \28\ For purposes only of waiving the 30-day operative delay,
the Commission also has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule change should be approved or
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-CboeBZX-2018-089 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.

All submissions should refer to File Number SR-CboeBZX-2018-089. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549 on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-CboeBZX-2018-089 and should be submitted
on or before February 21, 2019.
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    \29\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\29\
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019-00476 Filed 1-30-19; 8:45 am]
 BILLING CODE 8011-01-P