[Federal Register Volume 82, Number 88 (Tuesday, May 9, 2017)]
[Notices]
[Pages 21573-21581]
[FR Doc No: 2017-09311]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80584; File No. SR-NYSEArca-2017-44]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
of Proposed Rule Change To List and Trade Shares of the IQ Municipal
Insured ETF; IQ Municipal Short Duration ETF; and IQ Municipal
Intermediate ETF Under NYSE Arca Equities Rule 8.600

May 3, 2017.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given
that, on April 20, 2017, NYSE Arca, Inc. (``Exchange'' or ``NYSE
Arca'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C.78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.

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

    The Exchange proposes to list and trade shares of the IQ Municipal
Insured ETF; IQ Municipal Short Duration ETF; and IQ Municipal
Intermediate ETF (each a ``Fund'' and, collectively, the ``Funds'')
under NYSE Arca Equities Rule 8.600 (``Managed Fund Shares''). The
proposed change is available on the Exchange's Web site at
www.nyse.com, at the principal office of the Exchange, and at the
Commission's Public Reference Room.

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

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

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

1. Purpose
    The Exchange proposes to list and trade shares (``Shares'') of each
Fund under NYSE Arca Equities Rule 8.600,\4\ which governs the listing
and trading of Managed Fund Shares.\5\ The Shares will be offered by
the IndexIQ Active ETF Trust (the ``Trust''), which is registered with
the Commission as an open-end management investment company.\6\ Each
Fund is a series of the Trust.
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    \4\ The Securities and Exchange Commission (``Commission'') has
approved for Exchange listing and trading shares of actively managed
funds of the [sic] that principally hold municipal bonds. See, e.g.,
Securities Exchange Act Release Nos. 60981 (November 10, 2009), 74
FR 59594 (November 18, 2009) (SR-NYSEArca-2009-79) (order approving
listing and trading of shares of the PIMCO Short-Term Municipal Bond
Strategy Fund and PIMCO Intermediate Municipal Bond Strategy Fund);
79293 (November 10, 2016), 81 FR 81189 (November 17, 2016) (SR-
NYSEArca-2016-107) (order approving listing and trading of shares of
Cumberland Municipal Bond ETF under Rule 8.600). The Commission also
has approved listing and trading on the Exchange of shares of the
SPDR Nuveen S&P High Yield Municipal Bond Fund under Commentary .02
of NYSE Arca Equities Rule 5.2(j)(3). See Securities Exchange Act
Release No. 63881 (February 9, 2011), 76 FR 9065 (February 16, 2011)
(SR-NYSEArca-2010-120).
    \5\ A Managed Fund Share is a security that represents an
interest in an investment company registered under the Investment
Company Act of 1940 (15 U.S.C. 80a-1) (``1940 Act'') organized as an
open-end investment company or similar entity that invests in a
portfolio of securities selected by its investment adviser
consistent with its investment objectives and policies. In contrast,
an open-end investment company that issues Investment Company Units,
listed and traded on the Exchange under NYSE Arca Equities Rule
5.2(j)(3), seeks to provide investment results that correspond
generally to the price and yield performance of a specific foreign
or domestic stock index, fixed income securities index or
combination thereof.
    \6\ The Trust is registered under the 1940 Act. On February 24,
2017, the Trust filed with the Commission its registration statement
on Form N-1A under the Securities Act of 1933 (15 U.S.C. 77a)
(``Securities Act''), and under the 1940 Act relating to the Funds
(File Nos. 333-183489 and 811-22739) (``Registration Statement'').
The description of the operation of the Trust and the Funds herein
is based, in part, on the Registration Statement. In addition, the
Commission has issued an order granting certain exemptive relief to
the Trust under the 1940 Act. See Investment Company Act Release No.
30198 (September 10, 2012) (File No. 812-13956) (``Exemptive
Order'').
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    The investment adviser to each Fund will be IndexIQ Advisors LLC
(the ``Adviser''). MacKay Shields LLC will be each Fund's sub-adviser
(Subadviser). ALPS Distributors, Inc. Inc. [sic] will serve as the
distributor (the ``Distributor'') of each Fund's Shares on an agency
basis. The Bank of New York Mellon (``BNY Mellon'') will serve as each
Fund's Administrator, Custodian, Transfer Agent and Securities Lending
Agent.
    Commentary .06 to Rule 8.600 provides that, if the investment
adviser to the investment company issuing Managed Fund Shares is
affiliated with a broker-dealer, such investment adviser shall erect a
``fire wall'' between the investment adviser and the broker-dealer with
respect to access to information concerning the composition and/or
changes to such investment company portfolio.\7\ In addition,
Commentary .06 further requires that personnel who make decisions on
the open-end fund's portfolio composition must be subject to procedures
designed to prevent the use and dissemination of material nonpublic
information regarding the open-end fund's portfolio. The Adviser or
Subadviser is not a registered broker-dealer but is affiliated with a
broker-dealer. The Adviser and Subadviser have implemented a ``fire
wall'' with respect to such broker-dealer affiliate regarding access to
information concerning the composition of and/or changes to each Fund's
portfolio. In the event (a) the Adviser or Subadviser becomes
registered as a broker-dealer or newly affiliated with a broker-dealer,
or (b) any new adviser or sub-adviser to a Fund is a registered broker-
dealer or becomes affiliated with a broker-dealer, the applicable
adviser or sub-adviser will implement and maintain a fire wall with
respect to its relevant personnel or broker-dealer affiliate regarding
access to information concerning the composition and/or changes to a
Fund's portfolio, and will be subject to procedures designed to prevent
the use and dissemination of material non-public information regarding
such portfolio.
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    \7\ 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 Subadviser and their related
personnel are subject to the provisions of Rule 204A-1 under the
Advisers Act relating to codes of ethics. This Rule requires
investment advisers to adopt a code of ethics that reflects the
fiduciary nature of the relationship to clients as well as
compliance with other applicable securities laws. Accordingly,
procedures designed to prevent the communication and misuse of non-
public information by an investment adviser must be consistent with
Rule 204A-1 under the Advisers Act. In addition, Rule 206(4)-7 under
the Advisers Act makes it unlawful for an investment adviser to
provide investment advice to clients unless such investment adviser
has (i) adopted and implemented written policies and procedures
reasonably designed to prevent violation, by the investment adviser
and its supervised persons, of the Advisers Act and the Commission
rules adopted thereunder; (ii) implemented, at a minimum, an annual
review regarding the adequacy of the policies and procedures
established pursuant to subparagraph (i) above and the effectiveness
of their implementation; and (iii) designated an individual (who is
a supervised person) responsible for administering the policies and
procedures adopted under subparagraph (i) above.
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IQ Municipal Insured ETF
    According to the Registration Statement, the Fund will seek current
income exempt from federal income tax. The Fund, under normal market
conditions,\8\ will invest at least 80% of its assets in municipal
bonds (``Municipal Bonds'', as described below) that are covered by
insurance policies that guarantee the timely

payment of principal and interest. The Fund generally will maintain a
dollar-weighted average duration within plus or minus two years of the
dollar-weighted average duration of the S&P Municipal Bond Insured
Index.\9\
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    \8\ The term ``under normal market conditions'' as used herein
includes, but is not limited to, the absence of adverse market,
economic, political or other conditions, including extreme
volatility or trading halts in the fixed income markets or the
financial markets generally; operational issues (e.g., systems
failure) causing dissemination of inaccurate market information; or
force majeure type events such as natural or man-made disaster, act
of God, armed conflict, act of terrorism, riot or labor disruption
or any similar intervening circumstance. On a temporary basis,
including for defensive purposes, during the initial invest-up
period (i.e., the six-week period following the commencement of
trading of Shares on the Exchange) and during periods of high cash
inflows or outflows (i.e., rolling periods of seven calendar days
during which inflows or outflows of cash, in the aggregate, exceed
10% of a Fund's net assets as of the opening of business on the
first day of such periods), a Fund may depart from its principal
investment strategies; for example, it may hold a higher than normal
proportion of its assets in cash. During such periods, a Fund may
not be able to achieve its investment objectives. A Fund may adopt a
defensive strategy when the Adviser believes securities in which a
Fund normally invests have elevated risks due to political or
economic factors and in other extraordinary circumstances.
    \9\ Municipal bonds are issued by or on behalf of the District
of Columbia, states, territories, commonwealths and possessions of
the United States and their political subdivisions and agencies,
authorities and instrumentalities. Municipal securities, which may
be issued in various forms, including bonds and notes, are issued to
obtain funds for various public purposes.
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    For [sic] Fund, as well as the IQ Municipal Short Duration ETF and
IQ Intermediate ETF which are discussed below, the Subadviser's
investment process will begin with an assessment of macro factors that
may impact the municipal bond market, as well as other regulatory, tax,
governmental, and technical factors that may impact the municipal bond
market. Following the assessment of these factors, the Subadviser will
develop an investment strategy to position a Fund among various sectors
of the municipal bond market and different states. The Subadviser then
will employ a fundamental, ``bottom-up'' credit research analysis to
select individual Municipal Bonds.
Municipal Bonds
    For purposes of this filing, the term ``Municipal Bonds'' as
applied to each of the Funds includes the following:
     Municipal lease obligations (and certificates of
participation in such obligations);
     municipal general obligation bonds (including industrial
development bonds issued pursuant to federal tax law), which are issued
for either project or enterprise financings in which the bond issuer
pledges to the bondholders the revenues generated by the operating
projects financed from the proceeds of the bond issuance;
     limited obligation bonds, which are payable only from the
revenues derived from a particular facility or class of facilities or,
in some cases from the proceeds of a special excise or other specific
revenue source;
     municipal revenue bonds (which are typically secured by
revenues generated by the issuer), including revenue anticipation
notes;
     municipal bond anticipation notes (which are normally
issued to provide interim financial assistance until long-term
financing can be arranged);
     Municipal Bonds that feature credit enhancements, such as
lines of credit, letters of credit, municipal bond insurance, and
standby bond purchase agreements;
     discount bonds (which may be originally issued at a
discount to par value or sold at market price below par value);
     premium bonds, which are sold at a premium to par value;
     zero coupon bonds, which are issued at an original issue
discount, with the full value, including accrued interest, paid at
maturity;
     taxable municipal bonds, including Build America Bonds;
     municipal notes;
     municipal cash equivalents;
     private activity bonds (including without limitation
industrial development bonds);
     pre-refunded and escrowed to maturity bonds; and
     securities issued by entities whose underlying assets are
Municipal Bonds (i.e., tender option bond (TOB) trusts and custodial
receipts trusts and variable rate demand notes (VRDNs) that pay
interest monthly or quarterly based on a floating rate that is reset
daily or weekly based on an index of short-term municipal rates).
    The Fund may invest more than 25% of its total assets in Municipal
Bonds that are related in such a way that an economic, business or
political development or change affecting one such security could also
affect the other securities. However, the Fund's investments will be
diversified among a minimum of ten different sectors of the Municipal
Bond market. The Fund's investments in Municipal Bonds will include
investments in state and local (e.g., county, city, town) and
authority-issued Municipal Bonds relating to such sectors as the
following: State general obligation; local general obligation;
education; hospital; housing; industrial development revenue (IDR)/
pollution control revenue (PCR); power; resource recovery;
transportation; water/sewer; leasing; special tax; and pre-refunded
bonds. The Fund's investments will be diversified among at least 15
different states, with no more than 30% of the Fund's securities
invested in municipal securities from a single state. Under normal
market conditions, no security (excluding Treasury securities) will
represent more than 25% of the weight of the portfolio, and the five
highest weighed securities will not, in the aggregate, account for more
than 50% of the weight of the Fund. No Municipal Bond held by the Fund
will exceed 5% of the weight of the Fund's portfolio and no single
Municipal Bond issuer will account for more than 8% of the weight of
the Fund's portfolio. The Fund will hold Municipal Bonds of a minimum
of 25 non-affiliated issuers.\10\
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    \10\ For purposes of this restriction, each state and each
separate political subdivision, agency, authority, or
instrumentality of such state, each multi-state agency or authority,
and each guarantor, if any, will be treated as separate issuers of
Municipal Bonds.
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Other Investments
    With respect to each of the Funds, while a Fund, under normal
market conditions, will invest at least 80% of its assets in Municipal
Bonds, as described above, a Fund may invest its remaining assets in
other assets and financial instruments, as described below.
    A Fund may invest in shares of exchange-traded funds (``ETFs'') and
money market funds,\11\ and may invest directly and indirectly in:
Fixed rate and floating rate U.S. government securities, including
bills, notes and bonds differing as to maturity and rates of interest,
which are either issued or guaranteed by the U.S. Treasury or by U.S.
government agencies or instrumentalities (``U.S. Government
Securities''); repurchase agreements; commercial paper; and may
purchase securities on a when-issued basis or for settlement at a
future date (forward commitment), if a Fund holds sufficient liquid
assets to meet the purchase price (collectively, ``Other
Investments'').
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    \11\ For purposes of this filing, ETFs include Investment
Company Units (as described in NYSE Arca Equities Rule 5.2(j)(3));
Portfolio Depositary Receipts (as described in NYSE Arca Equities
Rule 8.100); and Managed Fund Shares (as described in NYSE Arca
Equities Rule 8.600). The ETFs all will be listed and traded in the
U.S. on registered exchanges.
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IQ Municipal Short Duration ETF
    According to the Registration Statement, the Fund will seek current
income exempt from federal income tax. The Fund, under normal market
conditions, will invest at least 80% of its assets in Municipal Bonds.
The Fund generally will maintain a dollar-weighted average portfolio
duration of three years or less.
    The Fund may invest more than 25% of its total assets in Municipal
Bonds that are related in such a way that an economic, business or
political development or change affecting one such security could also
affect the other securities. However, the Fund's investments will be
diversified among a minimum of ten different sectors of the municipal
bond market. The Fund's investments will be diversified among at least
15 different states, with no more than 30% of the Fund's securities
invested in municipal securities from a single state. Under normal
market

conditions, no security (excluding Treasury securities) will represent
more than 25% of the weight of the portfolio, and the five highest
weighed securities will not, in the aggregate, account for more than
50% of the weight of the Fund. No Municipal Bond held by the Fund will
exceed 5% of the weight of the Fund's portfolio and no single Municipal
Bond issuer will account for more than 8% of the weight of the Fund's
portfolio. The Fund will hold Municipal Bonds of a minimum of 25 non-
affiliated issuers.
    While the Fund, under normal market conditions, will invest at
least 80% of its assets in Municipal Bonds, the Fund may invest its
remaining assets in Other Investments.
IQ Municipal Intermediate ETF
    According to the Registration Statement, the Fund will seek current
income exempt from federal income tax. The Fund, under normal market
conditions, will invest at least 80% of its assets in Municipal Bonds.
The Fund generally will maintain a dollar-weighted average duration
within plus or minus two years of the dollar-weighted average duration
of the S&P Municipal Bond Intermediate Index.
    The Fund may invest more than 25% of its total assets in Municipal
Bonds that are related in such a way that an economic, business or
political development or change affecting one such security could also
affect the other securities. However, the Fund's investments will be
diversified among a minimum of ten different sectors of the municipal
bond market. The Fund's investments will be diversified among at least
15 different states, with no more than 30% of the Fund's securities
invested in municipal securities from a single state. Under normal
market conditions, no security (excluding Treasury securities) will
represent more than 25% of the weight of the portfolio, and the five
highest weighed securities will not, in the aggregate, account for more
than 50% of the weight of the Fund. No Municipal Bond held by the Fund
will exceed 5% of the weight of the Fund's portfolio and no single
Municipal Bond issuer will account for more than 8% of the weight of
the Fund's portfolio. The Fund will hold Municipal Bonds of a minimum
of 25 non-affiliated issuers.
    While the Fund, under normal market conditions, will invest at
least 80% of its assets in Municipal Bonds, the Fund may invest its
remaining assets in Other Investments.
Determination of Net Asset Value (``NAV'')
    According to the Registration Statement, the NAV of the Shares for
a Fund will be equal to a Fund's total assets minus the Fund's total
liabilities divided by the total number of Shares outstanding. Interest
and investment income on the Trust's assets accrue daily and are
included in a Fund's total assets. Expenses and fees (including
investment advisory, management, administration and distribution fees,
if any) accrue daily and are included in the Fund's total liabilities.
The NAV is calculated by the Administrator and Custodian and determined
each business day as of the close of the NYSE Arca Core Trading Session
(ordinarily 4:00 p.m. Eastern time).
    A Fund typically will value fixed-income portfolio securities,
including Municipal Bonds, using last available bid prices or current
market quotations provided by dealers or prices (including evaluated
prices) supplied by a Fund's approved independent third-party pricing
services. Pricing services may use matrix pricing or valuation models
that utilize certain inputs and assumptions to derive values. An
amortized cost method of valuation may be used with respect to debt
obligations with sixty days or less remaining to maturity unless the
Adviser determines in good faith that such method does not represent
fair value.
    Generally, trading in U.S. Government Securities, money market
funds, and certain fixed-income securities is substantially completed
each day at various times prior to the close of business on the NYSE.
The values of such securities used in computing the NAV of the Fund
will be determined as of such times.
    The value of any ETFs held by the Fund is based on such securities'
closing price on local markets, when available. The value of a money
market fund held by a Fund will be based on the NAV of the money market
fund.
    When market quotations or prices are not readily available or are
deemed unreliable or not representative of an investment's fair value,
investments are valued using fair value pricing as determined in good
faith by the Adviser under procedures established by and under the
general supervision and responsibility of the Trust's Board of
Trustees.
Indicative Intra-Day Value
    The approximate value of each Fund's investments on a per-Share
basis, the Indicative Intra-Day Value (``IIV'') will be disseminated by
the Exchange or one or more major market data vendors every 15 seconds
during the Exchange's Core Trading Session (ordinarily 9:30 a.m. to
4:00 p.m., Eastern Time). The IIV should not be viewed as a ``real-
time'' update of NAV because the IIV may not be calculated in the same
manner as NAV, which is computed once per day.
    An independent third party calculator will calculate the IIV for
each Fund during the Exchange's Core Trading Session by dividing the
``Estimated Fund Value'' as of the time of the calculation by the total
number of outstanding Shares of that Fund. ``Estimated Fund Value'' is
the sum of the estimated amount of cash held in a Fund's portfolio, the
estimated amount of accrued interest owed to the Fund and the estimated
value of the securities held in the Fund's portfolio, minus the
estimated amount of the Fund's liabilities. The IIV will be calculated
based on the same portfolio holdings disclosed on the Trust's Web site.
Purchase and Redemption of Creation Units
Creation of Shares
    According to the Registration Statement, the Trust will issue and
sell Shares of a Fund only in Creation Units of at least 50,000 Shares
on a continuous basis through the Distributor, at their NAV next
determined after receipt, on any business day (that is, any day on
which the New York Stock Exchange (``NYSE'') is open for business.),
for an order received in proper form.
    The consideration for purchase of a Creation Unit of a Fund
generally will consist of an in-kind deposit of a designated portfolio
of securities--the Deposit Securities--per each Creation Unit
constituting a substantial replication, or a representation, of the
securities included in a Fund's portfolio and an amount of cash--the
``Cash Component.'' Together, the Deposit Securities and the Cash
Component constitute the ``Fund Deposit,'' which represents the minimum
initial and subsequent investment amount for a Creation Unit of a Fund.
The Cash Component is an amount equal to the difference between the NAV
of the Shares (per Creation Unit) and the market value of the Deposit
Securities.
    The Administrator, through the National Securities Clearing
Corporation (``NSCC''), will make available on each business day,
immediately prior to the opening of business on the Exchange (currently
9:30 a.m., Eastern Time), the list of the names and the required number
of shares of each Deposit Security to be included in the current

Fund Deposit (based on information at the end of the previous business
day) for a Fund.
    In addition to the list of names and numbers of securities
constituting the current Deposit Securities of a Fund Deposit, the
Administrator, through the NSCC, also will make available on each
business day, the estimated Cash Component, effective through and
including the previous business day, per outstanding Creation Unit of a
Fund.
    To be eligible to place orders to create a Creation Unit of a Fund,
an entity must be (i) a ``Participating Party'', i.e., a broker-dealer
or other participant in the clearing process through the Continuous Net
Settlement System of the NSCC (the ``Clearing Process''), a clearing
agency that is registered with the Commission; or (ii) a DTC
Participant, and, in each case, must have executed an agreement
(``Participant Agreement'') with the Trust, the Distributor and the
Administrator with respect to creations and redemptions of Creation
Units. A Participating Party and DTC Participant are collectively
referred to as an ``Authorized Participant.''
    All orders to create Creation Units must be placed for one or more
Creation Unit size aggregations of at least 50,000 Shares. All orders
to create Creation Units, whether through the Clearing Process (through
a Participating Party) or outside the Clearing Process (through a DTC
Participant), must be received by the Distributor no later than 3:00
p.m. Eastern Time, in each case on the date such order is placed in
order for the creation of Creation Units to be effected based on the
NAV of Shares of a Fund as next determined on such date after receipt
of the order in proper form.
Redemption of Shares
    Shares may be redeemed only in Creation Units at their NAV next
determined after receipt of a redemption request in proper form by the
Distributor and the Fund through the Administrator and only on a
business day. Orders to redeem Creation Units must be received by the
Administrator not later than 3:00 Eastern Time.
    With respect to each Fund, the Administrator, through the NSCC,
will make available immediately prior to the opening of business on the
Exchange (currently 9:30 a.m., Eastern Time) on each business day, the
designated portfolio of securities (``Fund Securities'') per each
Creation Unit that will be applicable (subject to possible amendment or
correction) to redemption requests received in proper form (as defined
below) on that day. Fund Securities received on redemption may not be
identical to Deposit Securities which are applicable to creations of
Creation Units.
    Unless cash redemptions are available or specified for a Fund, the
redemption proceeds for a Creation Unit generally will consist of Fund
Securities--as announced by the Administrator on the business day of
the request for redemption received in proper form--plus cash in an
amount equal to the difference between the NAV of the Shares being
redeemed, as next determined after a receipt of a request in proper
form, and the value of the Fund Securities (the ``Cash Redemption
Amount''), less a redemption transaction fee. In the event that the
Fund Securities have a value greater than the NAV of the Shares, a
compensating cash payment equal to the differential is required to be
made by or through an Authorized Participant by the redeeming
shareholder.
    The redemption proceeds for a Creation Unit of a Fund will consist
solely of cash in an amount equal to the NAV of the Shares being
redeemed, as next determined after receipt of a request in proper form
less a redemption transaction fee.
    If it is not possible to effect deliveries of the Fund Securities,
the Trust may in its discretion exercise its option to redeem such
Shares in cash, and the redeeming Beneficial Owner will be required to
receive its redemption proceeds in cash. In addition, an investor may
request a redemption in cash which a Fund may, in its sole discretion,
permit. In either case, the investor will receive a cash payment equal
to the NAV of its Shares based on the NAV of Shares of a Fund next
determined after the redemption request is received in proper form. A
Fund may also, in its sole discretion, upon request of a shareholder,
provide such redeemer a portfolio of securities which differs from the
exact composition of a Fund Securities but does not differ in NAV.
Availability of Information
    Each Fund will disclose on the Funds' Web site (www.iqetfs.com) at
the start of each business day the identities and quantities of the
securities and other assets held by each Fund that will form the basis
of the Fund's calculation of its net asset value (``NAV'') on that
business day. The portfolio holdings so disclosed will be based on
information as of the close of business on the prior business day and/
or trades that have been completed prior to the opening of business on
that business day and that are expected to settle on the business day.
Online disclosure of such holdings is publicly available at no charge.
    The Web site for the Funds will contain the following information,
on a per-Share basis, for each Fund: (1) The prior business day's NAV;
(2) the reported midpoint of the bid-ask spread at the time of NAV
calculation (the ``Bid-Ask Price''); (3) a calculation of the premium
or discount of the Bid-Ask Price against such NAV; and (4) data in
chart format displaying the frequency distribution of discounts and
premiums of the Bid-Ask Price against the NAV, within appropriate
ranges, for each of the four previous calendar quarters (or for the
life of a Fund if, shorter). In addition, on each business day, before
the commencement of trading in Shares on the NYSE Arca, each Fund will
disclose on its Web site the identities and quantities of the portfolio
securities and other assets held by each Fund that will form the basis
for the calculation of NAV at the end of the business day.
    On a daily basis, the Funds will disclose the information required
under NYSE Arca Equities Rule 8.600 (c)(2) to the extent applicable.
    Each Fund's portfolio holdings will be disclosed on the Funds' Web
site daily after the close of trading on the Exchange and prior to the
opening of trading on the Exchange the following day.
    Information regarding the extent and frequency with which market
prices of Shares have tracked the relevant Fund's NAV for the most
recently completed calendar year and the quarters since that year will
be available without charge on the Funds' Web site.
    The approximate value of a Fund's investments on a per-Share basis,
the IIV, will be disseminated every 15 seconds during the Exchange Core
Trading Session (ordinarily 9:30 a.m. to 4:00 p.m., Eastern Time).
    Investors can also obtain each Fund's Statement of Additional
Information (``SAI''), shareholder reports, Form N-CSR and Form N-SAR,
filed twice a year. The Funds' SAI and shareholder reports will be
available free upon request from the Trust, and those documents and the
Form N-CSR and Form N-SAR may be viewed on-screen or downloaded from
the Commission's Web site at www.sec.gov. Information regarding market
price and trading volume of the Shares will be continually available on
a real-time basis throughout the day on brokers' computer screens and
other electronic services. Information regarding the previous day's
closing price and trading volume information for the Shares will be
publicly available.
    Quotation and last sale information for the Shares and will be
available via the Consolidated Tape Association

(``CTA'') high-speed line, and from the national securities exchange
[sic] on which they are listed.
    Quotation information from brokers and dealers or pricing services
will be available for Municipal Bonds and Other Investments. Price
information for money market funds will be available from the
applicable investment company's Web site and from market data vendors.
Pricing information regarding Municipal Bonds and Other Investments
will generally be available through nationally recognized data service
providers through subscription agreements. In addition, the IIV (which
is the Portfolio Indicative Value, as defined in NYSE Arca Equities
Rule 8.600(c)(3)), will be widely disseminated at least every 15
seconds during the Core Trading Session by one or more major market
data vendors or other information providers.\12\
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    \12\ Currently, it is the Exchange's understanding that several
major market data vendors display and/or make widely available IIVs
taken from CTA or other data feeds.
---------------------------------------------------------------------------

Investment Restrictions
    Each Fund may hold up to an aggregate amount of 15% of its net
assets in illiquid assets (calculated at the time of investment) deemed
illiquid by the Adviser, consistent with Commission guidance. Each Fund
will monitor its portfolio liquidity on an ongoing basis to determine
whether, in light of current circumstances, an adequate level of
liquidity is being maintained, and will consider taking appropriate
steps in order to maintain adequate liquidity if, through a change in
values, net assets, or other circumstances, more than 15% of a Fund's
net assets are held in illiquid assets. Illiquid assets include
securities subject to contractual or other restrictions on resale and
other instruments that lack readily available markets as determined in
accordance with Commission staff guidance.\13\
---------------------------------------------------------------------------

    \13\ The Commission has stated that long-standing Commission
guidelines have required open-end funds to hold no more than 15% of
their net assets in illiquid securities and other illiquid assets.
See Investment Company Act Release No. 28193 (March 11, 2008), 73 FR
14618 (March 18, 2008), footnote 34. See also, Investment Company
Act Release No. 5847 (October 21, 1969), 35 FR 19989 (December 31,
1970) (Statement Regarding ``Restricted Securities''); Investment
Company Act Release No. 18612 (March 12, 1992), 57 FR 9828 (March
20, 1992) (Revisions of Guidelines to Form N-1A). A fund's portfolio
security is illiquid if it cannot be disposed of in the ordinary
course of business within seven days at approximately the value
ascribed to it by the fund. See Investment Company Act Release No.
14983 (March 12, 1986), 51 FR 9773 (March 21, 1986) (adopting
amendments to Rule 2a-7 under the 1940 Act); Investment Company Act
Release No. 17452 (April 23, 1990), 55 FR 17933 (April 30, 1990)
(adopting Rule 144A under the Securities Act).
---------------------------------------------------------------------------

    Each Fund's investments will be consistent with its investment goal
and will not be used to provide multiple returns of a benchmark or to
produce leveraged returns.
    Each Fund may invest more than 25% of its total assets in municipal
bonds that are related in such a way that an economic, business or
political development or change affecting one such security could also
affect the other securities. However, a Fund's investments will be
diversified among a minimum of ten different sectors of the municipal
bond market. A Fund's investments will be diversified among at least 15
different states, with no more than 30% of a Fund's securities invested
in municipal securities from a single state. Under normal market
conditions, no security (excluding Treasury securities) will represent
more than 25% of the weight of the portfolio, and the five highest
weighed securities will not, in the aggregate, account for more than
50% of the weight of the Fund. No Municipal Bond held by the Fund will
exceed 5% of the weight of the Fund's portfolio and no single Municipal
Bond issuer will account for more than 8% of the weight of the Fund's
portfolio. The Fund will hold Municipal Bonds of a minimum of 25 non-
affiliated issuers.
Application of Generic Listing Requirements
    The Exchange is submitting this proposed rule change because the
portfolios for the Funds will not meet all of the ``generic'' listing
requirements of Commentary .01 to NYSE Arca Equities Rule 8.600
applicable to the listing of Managed Fund Shares. Each Fund's portfolio
will meet all such requirements except for those set forth in
Commentary .01(b)(1).\14\
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    \14\ Commentary .01(b)(1) to NYSE Arca Equities Rule 8.600
provides that components that in the aggregate account for at least
75% of the fixed income weight of the portfolio each shall have a
minimum original principal amount outstanding of $100 million or
more.
---------------------------------------------------------------------------

    The Exchange believes that it is appropriate and in the public
interest to approve listing and trading of Shares of the Funds on the
Exchange notwithstanding that the Funds would not meet the requirements
of Commentary .01(b)(1) to Rule 8.600 in that the Funds' investments in
municipal securities will be well-diversified.
    The Exchange believes that permitting Fund Shares to be listed and
traded on the Exchange notwithstanding that less than 75% of the weight
of a Fund's portfolio may consist of components with less than $100
million minimum original principal amount outstanding would provide the
Funds with greater ability to select from a broad range of Municipal
Bonds, as described above, that would support a Fund's investment goal.
    The Exchange believes that, notwithstanding that each Fund's
portfolio may not satisfy Commentary .01(b)(1) to Rule 8.600, the
Funds' portfolios will not be susceptible to manipulation. As noted
above, the Funds' investments will be diversified among a minimum of
ten different sectors of the municipal bond market. The Funds'
investments will be diversified among at least 15 different states,
with no more than 30% of a Fund's securities invested in municipal
securities from a single state. Additionally, no Municipal Bond held by
a Fund will exceed 5% of the weight of the Fund's portfolio and no
single Municipal Bond issuer will account for more than 8% of the
weight of a Fund's portfolio. A Fund will hold Municipal Bonds of a
minimum of 25 non-affiliated issuers. The Exchange notes that, other
than Commentary .01(b)(1) to Rule 8.600, each Fund's portfolio will
meet all other requirements of Rule 8.600.
Trading Halts
    With respect to trading halts, the Exchange may consider all
relevant factors in exercising its discretion to halt or suspend
trading in the Shares of a Fund.\15\ Trading in Shares of a Fund will
be halted if the circuit breaker parameters in NYSE Arca Equities Rule
7.12 have been reached. Trading also may be halted because of market
conditions or for reasons that, in the view of the Exchange, make
trading in the Shares inadvisable.
---------------------------------------------------------------------------

    \15\ See NYSE Arca Equities Rule 7.12.
---------------------------------------------------------------------------

Trading Rules
    The Exchange deems the Shares to be equity securities, thus
rendering trading in the Shares subject to the Exchange's existing
rules governing the trading of equity securities. Shares will trade on
the NYSE Arca Marketplace from 4 a.m. to 8 p.m., Eastern Time in
accordance with NYSE Arca Equities Rule 7.34 (Early, Core, and Late
Trading Sessions). The Exchange has appropriate rules to facilitate
transactions in the Shares during all trading sessions. As provided in
NYSE Arca Equities Rule 7.6, the minimum price variation (``MPV'') for
quoting and entry of orders in equity securities traded on the NYSE
Arca Marketplace is $0.01, with the exception of securities that are
priced less than $1.00 for which the MPV for order entry is $0.0001.

    The Shares of each Fund will conform to the initial and continued
listing criteria under NYSE Arca Equities Rule 8.600. Consistent with
NYSE Arca Equities Rule 8.600(d)(2)(B)(ii), the Adviser will implement
and maintain, or be subject to, procedures designed to prevent the use
and dissemination of material non-public information regarding the
actual components of a Fund's portfolio. The Exchange represents that,
for initial and/or continued listing, a Fund will be in compliance with
Rule 10A-3 \16\ under the Act, as provided by NYSE Arca Equities Rule
5.3. A minimum of 100,000 Shares will be outstanding at the
commencement of trading on the Exchange. The Exchange will obtain a
representation from the issuer of the Shares that the NAV per Share
will be calculated daily and that the NAV and the Disclosed Portfolio
will be made available to all market participants at the same time.
Each Fund's investments will be consistent with a Fund's investment
goal and will not be used to enhance leverage.
---------------------------------------------------------------------------

    \16\ 17 CFR 240.10A-3.
---------------------------------------------------------------------------

Surveillance
    The Exchange represents that trading in the Shares will be subject
to the existing trading surveillances, administered by the Financial
Industry Regulatory Authority (``FINRA'') on behalf of the Exchange, or
by regulatory staff of the Exchange, which are designed to detect
violations of Exchange rules and applicable federal securities laws.
The Exchange represents that these procedures are adequate to properly
monitor Exchange trading of the Shares in all trading sessions and to
deter and detect violations of Exchange rules and federal securities
laws applicable to trading on the Exchange.\17\
---------------------------------------------------------------------------

    \17\ FINRA conducts cross-market surveillances on behalf of the
Exchange pursuant to a regulatory services agreement. The Exchange
is responsible for FINRA's performance under this regulatory
services agreement.
---------------------------------------------------------------------------

    The surveillances referred to above generally focus on detecting
securities trading outside their normal patterns, which could be
indicative of manipulative or other violative activity. When such
situations are detected, surveillance analysis follows and
investigations are opened, where appropriate, to review the behavior of
all relevant parties for all relevant trading violations.\18\
---------------------------------------------------------------------------

    \18\ For a list of the current members of ISG, see
www.isgportal.org. The Exchange notes that not all components of the
Disclosed Portfolio may trade on markets that are members of ISG or
with which the Exchange has in place a comprehensive surveillance
sharing agreement.
---------------------------------------------------------------------------

    The Exchange or FINRA, on behalf of the Exchange, or both, will
communicate as needed regarding trading in the Shares and ETFs with
other markets and other entities that are members of the ISG, and the
Exchange or FINRA, on behalf of the Exchange, or both, may obtain
trading information regarding trading in the Shares and ETFs from such
markets and other entities. In addition, the Exchange may obtain
information regarding trading in the Shares and ETFs from markets and
other entities that are members of ISG or with which the Exchange has
in place a comprehensive surveillance sharing agreement. In addition,
FINRA, on behalf of the Exchange, is able to access, as needed, trade
information for certain fixed income securities held by a Fund reported
to FINRA's Trade Reporting and Compliance Engine (``TRACE''). FINRA
also can access data obtained from the Municipal Securities Rulemaking
Board (``MSRB'') relating to municipal bond trading activity for
surveillance purposes in connection with trading in the Shares.
    In addition, the Exchange also has a general policy prohibiting the
distribution of material, non-public information by its employees.
    All statements and representations made in this filing regarding
(a) the description of the portfolio, (b) limitations on portfolio
holdings or reference assets, or (c) or (c) [sic] the applicability of
Exchange listing rules specified in this rule filing shall constitute
continued listing requirements for listing the Shares of a Fund on the
Exchange.
    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 Act, the Exchange will monitor 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 under NYSE Arca Equities Rule 5.5(m).
Information Bulletin
    Prior to the commencement of trading, the Exchange will inform its
Equity Trading Permit Holders in an Information Bulletin (``Bulletin'')
of the special characteristics and risks associated with trading the
Shares. Specifically, the Bulletin will discuss the following: (1) The
procedures for purchases and redemptions of Shares in Creation Unit
aggregations (and that Shares are not individually redeemable); (2)
NYSE Arca Equities Rule 9.2(a), which imposes a duty of due diligence
on its Equity Trading Permit Holders to learn the essential facts
relating to every customer prior to trading the Shares; (3) the risks
involved in trading the Shares during the Opening and Late Trading
Sessions when an updated IIV will not be calculated or publicly
disseminated; (4) how information regarding the IIV and the Disclosed
Portfolio is disseminated; (5) the requirement that Equity Trading
Permit Holders deliver a prospectus to investors purchasing newly
issued Shares prior to or concurrently with the confirmation of a
transaction; and (6) trading information.
    In addition, the Bulletin will reference that each Fund is subject
to various fees and expenses described in the Registration Statement.
The Bulletin will discuss any exemptive, no-action, and interpretive
relief granted by the Commission from any rules under the Act. The
Bulletin will also disclose that the NAV for the Shares will be
calculated after 4:00 p.m., Eastern Time each trading day.
2. Statutory Basis
    The basis under the Act for this proposed rule change is the
requirement under Section 6(b)(5) \19\ that an exchange have rules that
are designed to prevent fraudulent and manipulative acts and practices,
to promote just and equitable principles of trade, to remove
impediments to, and perfect the mechanism of a free and open market
and, in general, to protect investors and the public interest.
---------------------------------------------------------------------------

    \19\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange believes that the proposed rule change is designed to
prevent fraudulent and manipulative acts and practices in that the
Shares will be listed and traded on the Exchange pursuant to the
initial and continued listing criteria in NYSE Arca Equities Rule
8.600. The Exchange has in place surveillance procedures that are
adequate to properly monitor trading in the Shares in all trading
sessions and to deter and detect violations of Exchange rules and
applicable federal securities laws. The Exchange or FINRA, on behalf of
the Exchange, or both, will communicate as needed regarding trading in
the Shares with other markets and other entities that are members of
the ISG, and the Exchange or FINRA, on behalf of the Exchange, or both,
may obtain trading information regarding trading in the Shares from
such markets and other entities. In addition, the Exchange may obtain
information regarding trading in the Shares from markets and other
entities that are members of ISG or with which the

Exchange has in place a comprehensive surveillance sharing agreement.
In addition, FINRA, on behalf of the Exchange, is able to access, as
needed, trade information for certain fixed income securities held by a
Fund reported to TRACE. FINRA also can access data obtained from the
MSRB relating to municipal bond trading activity for surveillance
purposes in connection with trading in the Shares. Each Fund may not
purchase illiquid assets if, in the aggregate, more than 15% of its net
assets would be invested in illiquid assets. The Adviser is not
registered as a broker-dealer but is affiliated with a broker-dealer
and will implement and maintain a fire wall with respect to each of its
relevant personnel or broker-dealer affiliate regarding access to
information concerning the composition and/or changes to the
portfolios.
    The Exchange believes that it is appropriate and in the public
interest to approve listing and trading of Shares of the Funds on the
Exchange notwithstanding that the Funds would not meet the requirements
of Commentary .01(b)(1) to Rule 8.600 in that the Funds' investments in
municipal securities will be well-diversified. As noted above, the
Funds' investments will be diversified among a minimum of ten different
sectors of the municipal bond market. The Funds' investments will be
diversified among at least 15 different states, with no more than 30%
of a Fund's securities invested in municipal securities from a single
state. Additionally, no Municipal Bond held by a Fund will exceed 5% of
the weight of the Fund's portfolio and no single Municipal Bond issuer
will account for more than 8% of the weight of a Fund's portfolio. A
Fund will hold Municipal Bonds of a minimum of 25 non-affiliated
issuers. The Exchange notes that, other than Commentary .01(b)(1) to
Rule 8.600, each Fund's portfolio will meet all other requirements of
Rule 8.600.
    The Exchange believes that permitting Fund Shares to be listed and
traded on the Exchange notwithstanding that less than 75% of the weight
of a Fund's portfolio may consist of components with less than $100
million minimum original principal amount outstanding would provide the
Funds with greater ability to select from a broad range of municipal
securities, as described above, that would support a Fund's investment
goal.
    The proposed rule change is designed to promote just and equitable
principles of trade and to protect investors and the public interest in
that the Exchange will obtain a representation from the issuer of the
Shares that the NAV per Share will be calculated daily and that the NAV
and the Disclosed Portfolio will be made available to all market
participants at the same time. In addition, a large amount of
information is publicly available regarding each Fund and the Shares,
thereby promoting market transparency. Quotation and last sale
information for the Shares and ETFs will be available via the CTA high-
speed line, and from the national securities exchange [sic] on which
they are listed. Prior to the commencement of trading, the Exchange
will inform its Equity Trading Permit Holders in an Information
Bulletin of the special characteristics and risks associated with
trading the Shares. Trading in Shares of the Funds will be halted if
the circuit breaker parameters in NYSE Arca Equities Rule 7.12 have
been reached or because of market conditions or for reasons that, in
the view of the Exchange, make trading in the Shares inadvisable.
Trading in the Shares will be subject to NYSE Arca Equities Rule
8.600(d)(2)(D), which sets forth circumstances under which Shares of
the Funds may be halted. In addition, as noted above, investors will
have ready access to information regarding the Funds' holdings, the
IIV, the Disclosed Portfolio, and quotation and last sale information
for the Shares.
    The proposed rule change is designed to perfect the mechanism of a
free and open market and, in general, to protect investors and the
public interest in that it will facilitate the listing and trading of
additional types of actively-managed exchange-traded products that
principally hold 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
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, as noted above, investors will have ready
access to information regarding each Fund's holdings, IIV, Disclosed
Portfolio, and quotation and last sale information for the Shares.

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

    The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purpose of the Act. The Exchange notes that the
proposed rule change will facilitate the listing and trading of
additional types of actively-managed exchange-traded products that
principally hold municipal bonds and that will enhance competition
among market participants, to the benefit of investors and the
marketplace.

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

    No written comments were solicited or received with respect to the
proposed rule change.

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

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

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-NYSEArca-2017-44 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NYSEArca-2017-44. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the

Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for Web site viewing and printing in
the Commission's Public Reference Room, 100 F Street NE., Washington,
DC 20549 on official business days between the hours of 10:00 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; 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-NYSEArca-2017-44 and should
be submitted on or before May 30, 2017.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\20\
---------------------------------------------------------------------------

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

Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-09311 Filed 5-8-17; 8:45 am]
BILLING CODE P


[Federal Register Volume 84, Number 229 (Wednesday, November 27, 2019)]
[Notices]
[Pages 65459-65460]
[FR Doc No: 2019-25785]

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DEPARTMENT OF TRANSPORTATION

Office of the Secretary

[Docket No. DOT-OST--2019-0167]

Rural Opportunities To Use Transportation for Economic Success:
Request for Information

AGENCY: Office of the Secretary, Department of Transportation (DOT).

ACTION: Request for information (RFI).

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

SUMMARY: On October 28, 2019, the Secretary of Transportation issued an
order launching the Rural Opportunities to Use Transportation for
Economic Success (ROUTES) initiative. ROUTES will help the Department
of Transportation (DOT) address disparities in rural transportation
infrastructure to tangibly improve safety and economic competitiveness
in all parts of the country. This notice requests comments on unmet
transportation infrastructure needs in rural transportation, barriers
that rural communities face in addressing these needs, stakeholders'
experiences with applying to and using DOT discretionary grant and
credit programs, and opportunities for DOT to improve its services and
technical assistance to rural communities in relation to these grant
and credit programs.

DATES: Comments must be received on or before 30 days from posting of
this notice. DOT will consider comments filed after this date to the
extent practicable.

ADDRESSES: Comments should refer to the docket number above and be
submitted by one of the following methods:
     Electronic Submission: Go to http://www.regulations.gov.
Search by using the docket number (provided above). Follow the
instructions for submitting comments on the electronic docket site.
     Mail: Docket Management Facility, U.S. Department of
Transportation, 1200 New Jersey Avenue SE, West Building Ground Floor,
Room PL-401, Washington, DC 20590-0001.
     Hand Delivery or Courier: 1200 New Jersey Avenue SE, West
Building Ground Floor, Room PL-401, Washington, DC, between 9 a.m. and
5 p.m. ET, Monday through Friday, except Federal Holidays.
    Instructions: All submissions must include the agency name and
docket numbers.

    Note: All comments received, including any personal information,
will be posted without change to the docket and will be accessible
to the public at http://www.regulations.gov. You should not include
information in your comment that you do not want to be made public.
Input submitted online via www.regulations.gov is not immediately
posted to the site. It may take several business days before your
submission is posted.

FOR FURTHER INFORMATION: Visit http://www.transportation.gov/rural, or
contact Robert Hyman at<EMAIL_ADDRESS>or<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Background

    The mission of the DOT is to ensure our Nation has the safest, most
efficient, and modern transportation system in the world; that improves
the quality of life for all American people and communities, from rural
to urban; and increases the productivity and competitiveness of
American workers and businesses. To accomplish this mission, Congress
authorizes and appropriates funds to the DOT, which administers a large
portfolio of grant and credit programs to maintain and improve aspects
of our transportation network. Each year, DOT awards billions of
dollars in discretionary transportation grants using prescribed
selection and eligibility criteria.
    Rural transportation networks are critically important for domestic
uses and export of agriculture, mining, and energy commodities, as well
as the quality of life for all Americans. However, rural networks face
unique challenges in safety, infrastructure condition, and usage.
    To address these issues, on October 28, 2019, the Secretary of
Transportation issued an order launching the Rural Opportunities to Use
Transportation for Economic Success (ROUTES) initiative. ROUTES will
improve how the DOT considers rural project applications in DOT's
discretionary grant and credit programs, including ensuring that
project costs, local resources, and the benefits to the American people
and economy are appropriately considered. It will also provide rural
communities with technical assistance for meeting the Nation's
transportation infrastructure investment needs in a financially
sustainable manner.
    DOT seeks information directly from the public and other
stakeholders to inform the development and implementation of the ROUTES
initiative. DOT seeks comments that illustrate rural communities' needs
and experiences with transportation infrastructure, including the
condition of that infrastructure, its effect on safety, and how its use
affects the community. For the purpose of this notice,
``transportation'' includes road, rail, transit, aviation, maritime,
pipelines, and other forms of transportation; ``infrastructure''
includes all capital investment in transportation such as structures,
equipment, and rolling stock. This includes comments and data
pertaining to current unmet needs in rural transportation, barriers
rural communities face in addressing these transportation needs,
stakeholders' experiences with applying to and using DOT discretionary
grant and credit programs, and opportunities for the DOT to improve its
services and technical assistance to rural communities in relation to
these grant and credit programs, within the limits of statutory
requirements. In addition, DOT specifically requests comments and data
in response to the questions below. To the extent possible, DOT seeks
relevant technical information, regulatory citations, data, or other
evidence to support the comments received.

1. Identifying Unmet Needs in Rural Transportation

    A. What infrastructure issues are contributing to high fatality
rates on rural roadways and rail-highway grade crossings (e.g., roadway
condition or geometry, driver behavior, wildlife collisions)?
    B. What unique challenges do rural areas face related to
infrastructure condition (e.g., age of infrastructure or equipment,
including vehicles, bridge closures or postings, types of freight
carried, weather resiliency)?
    C. How does infrastructure usage (e.g., access to public
transportation, technology deployment) affect the lives of rural
Americans?
    D. What types of infrastructure projects are most needed in rural
communities to meet national transportation priorities such as safety
and economic competitiveness?
    E. What types of rural transportation projects or services do rural
communities find challenging to fund?
    F. What additional or alternative methods can be used to identify
and prioritize rural transportation projects for funding through
discretionary grants?

2. Addressing Unmet Needs Through DOT Discretionary Grant Programs

    A. What resources or direct assistance could DOT provide to support
rural transportation projects or reach communities that may not be
aware of DOT discretionary programs?
    B. What challenges do rural communities face when applying for DOT
grants and financial assistance (e.g., project prioritization,
eligibility requirements, funding match)?
    C. What types of technical assistance would be effective for
navigating the application process?

Public Comment

    DOT invites comments by all those interested in the Rural
Opportunities to Use Transportation for Economic Success (ROUTES)
initiative. Comments may be submitted and viewed at Docket Number DOT-
OST-2019-0167 at http://www.regulations.gov, or at the address given
above under ADDRESSES. Comments must be received on or before 30 days
from posting of this notice to receive full consideration by DOT. After
30 days from posting of this notice, comments will continue to be
available for viewing by the public.

    Issued in Washington, DC, on November 22, 2019, under authority
delegated at 49 U.S.C. 1.25a.
Joel Szabat,
Acting Under Secretary of Transportation for Policy.
[FR Doc. 2019-25785 Filed 11-26-19; 8:45 am]
 BILLING CODE 4910-9X-P


[Federal Register Volume 76, Number 177 (Tuesday, September 13, 2011)]
[Notices]
[Pages 56463-56464]
[FR Doc No: 2011-23333]

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DEPARTMENT OF HOMELAND SECURITY

Federal Emergency Management Agency

[Internal Agency Docket No. FEMA-4008-DR; Docket ID FEMA-2011-0001]

Kentucky; Amendment No. 2 to Notice of a Major Disaster
Declaration

AGENCY: Federal Emergency Management Agency, DHS.

ACTION: Notice.

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SUMMARY: This notice amends the notice of a major disaster declaration
for the Commonwealth of Kentucky (FEMA-4008-DR), dated July 25, 2011,
and related determinations.

DATES: Effective Date: September 1, 2011.

FOR FURTHER INFORMATION CONTACT: Peggy Miller, Office of Response and
Recovery, Federal Emergency Management Agency, 500 C Street, SW.,
Washington, DC 20472,<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: The notice of a major disaster declaration
for the Commonwealth of Kentucky is hereby amended to include the
Individual Assistance program for the following areas among those areas
determined to have been adversely affected by the event declared a
major disaster by the President in his declaration of July 25, 2011.

    Bell, Knox, and Perry Counties for Individual Assistance
(already designated for Public Assistance).

(The following Catalog of Federal Domestic Assistance Numbers (CFDA)
are to be used for reporting and drawing funds: 97.030, Community
Disaster Loans; 97.031, Cora Brown Fund; 97.032, Crisis Counseling;
97.033, Disaster Legal Services; 97.034, Disaster Unemployment
Assistance (DUA); 97.046, Fire Management Assistance Grant; 97.048,
Disaster Housing Assistance to Individuals and Households in
Presidentially Declared Disaster Areas; 97.049, Presidentially
Declared Disaster Assistance--Disaster Housing Operations for
Individuals and Households; 97.050, Presidentially Declared Disaster
Assistance to Individuals

and Households--Other Needs; 97.036, Disaster Grants--Public
Assistance (Presidentially Declared Disasters); 97.039, Hazard
Mitigation Grant.)

W. Craig Fugate,
Administrator, Federal Emergency Management Agency.
[FR Doc. 2011-23333 Filed 9-12-11; 8:45 am]
BILLING CODE 9111-23-P


[Federal Register Volume 80, Number 18 (Wednesday, January 28, 2015)]
[Notices]
[Pages 4603-4605]
[FR Doc No: 2015-01507]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74113; File No. SR-ISE Gemini-2015-02]

Self-Regulatory Organizations; ISE Gemini, LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend the
Schedule of Fees

January 22, 2015.
    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 January 8, 2015, ISE Gemini, LLC (the ``Exchange'' or ``ISE
Gemini'') filed with the Securities and Exchange Commission the
proposed rule change, as described in Items I, II, and III below, which
items have been prepared by the self-regulatory organization. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    ISE Gemini proposes to amend the Schedule of Fees to introduce new
fees for Crossing Orders and Responses to Crossing Orders executed in
the Price Improvement Mechanism (``PIM''). The text of the proposed
rule change is available on the Exchange's Internet Web site at http://www.ise.com, at the principal office of the Exchange, and at the
Commission's Public Reference Room.

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

    In its filing with the Commission, the 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 self-regulatory organization 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 amend the Schedule of Fees to introduce
new fees for Crossing Orders and Responses to Crossing Orders executed
in the PIM. The Exchange's Schedule of Fees has separate fees
applicable to Standard Options and Mini Options. The Exchange notes
that while the discussion below relates to fees for Standard Options,
the fees for Mini Options, which are not discussed below, are and shall
continue to be \1/10th\ of the fees for Standard Options.
    ISE Gemini charges a fee for Crossing Orders executed in the
Facilitation Mechanism, Solicited Order Mechanism, Block Order
Mechanism, PIM, or submitted as a Qualified Contingent Cross (``QCC'')
order. This fee is currently $0.20 per contract in both Penny \3\ and
Non-Penny Symbols,\4\ and applies to Market Maker,\5\ Non-ISE Gemini
Market Maker,\6\ Firm Proprietary \7\/Broker-Dealer,\8\ and

Professional Customer \9\ (``non-Priority Customer'') orders on both
the originating and contra side of a Crossing Order. The Exchange now
proposes to reduce this fee for non-Priority Customer Crossing Orders
to $0.05 per contract for PIM orders only. Priority Customers \10\ do
not currently pay a fee for Crossing Orders executed on ISE Gemini. In
connection with the above change, the Exchange further proposes to
apply a $0.05 per contract fee to Priority Customer Crossing Orders
executed in the PIM when the Priority Customer is on the contra-side of
a PIM auction.
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    \3\ ``Penny Symbols'' are options overlying all symbols listed
on ISE Gemini that are in the Penny Pilot Program.
    \4\ ``Non- Penny Symbols'' are options overlying all symbols
excluding Penny Symbols.
    \5\ The term Market Maker refers to ``Competitive Market
Makers'' and ``Primary Market Makers'' collectively. Market Maker
orders sent to the Exchange by an Electronic Access Member are
assessed fees and rebates at the same level as Market Maker orders.
See footnote 2, Schedule of Fees, Section I and II.
    \6\ A ``Non-ISE Gemini Market Maker'' is a market maker as
defined in Section 3(a)(38) of the Securities Exchange Act of 1934,
as amended, registered in the same options class on another options
exchange.
    \7\ A ``Firm Proprietary'' order is an order submitted by a
member for its own proprietary account.
    \8\ A ``Broker-Dealer'' order is an order submitted by a member
for a broker-dealer account that is not its own proprietary account.
    \9\ A ``Professional Customer'' is a person or entity that is
not a broker/dealer and is not a Priority Customer.
    \10\ A ``Priority Customer'' is a person or entity that is not a
broker/dealer in securities, and does not place more than 390 orders
in listed options per day on average during a calendar month for its
own beneficial account(s), as defined in ISE Gemini Rule
100(a)(37A).
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    In addition, the Exchange charges a fee for Responses to Crossing
Orders. In Penny Symbols this fee is $0.49 per contract for non-
Priority Customer orders, and $0.45 per contract for Priority Customer
orders. In Non-Penny Symbols this fee is $0.86 per contract for Market
Maker orders, $0.87 per contract for Non-ISE Gemini Market Maker, Firm
Proprietary/Broker-Dealer, and Professional Customer orders, and $0.82
per contract for Priority Customer orders. The Exchange now proposes to
reduce this fee to $0.05 per contract for PIM orders executed for all
market participant types.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6 of the Act,\11\ in general, and
Section 6(b)(4) of the Act,\12\ in particular, in that it is designed
to provide for the equitable allocation of reasonable dues, fees, and
other charges among its members and other persons using its facilities.
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    \11\ 15 U.S.C. 78f.
    \12\ 15 U.S.C. 78f(b)(4).
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    The Exchange believes that the proposed fee changes are reasonable
and equitable as members that enter or respond to PIM auctions will
benefit from significantly lower overall fees for their PIM trades,
leading to greater participation and competition in the PIM, and
enhanced price improvement opportunities for investors. By lowering
fees for PIM orders, the proposed fee change is designed to encourage
members to execute this order flow on ISE Gemini rather than on
competing exchanges. In addition, the Exchange believes that decreasing
the fee for Responses to Crossing Orders will encourage market
participants to be more aggressive in providing additional price
improvement when they respond to orders entered into the PIM.
    The Exchange believes that the proposed PIM fees are not unfairly
discriminatory as the proposed fees apply equally to all members that
enter or respond to PIM auctions, except that Priority Customer orders
on the originating side of a PIM order will continue to not pay a fee.
Priority Customer orders on ISE Gemini are generally entitled to lower
fees and higher rebates as the Exchange believes that attracting more
liquidity from Priority Customers will benefit all market participants
that trade on ISE Gemini.\13\ While Priority Customer orders previously
enjoyed free executions on both the originating and contra-side of PIM
orders, the Exchange has determined to no longer offer this inducement
to contra-side orders, which are solicited by members from other
sophisticated parties that engage in this type of trading activity. As
such, all market participants that trade on the contra-side of a PIM
order will pay the same fee for this activity.
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    \13\ A Priority Customer is by definition not a broker or dealer
in securities, and does not place more than 390 orders in listed
options per day on average during a calendar month for its own
beneficial account(s). This limitation does not apply to
participants whose behavior is substantially similar to that of
market professionals, including Professional Customers, who will
generally submit a higher number of orders (many of which do not
result in executions) than Priority Customers.
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    The Exchange notes that it has determined to charge fees and
provide rebates in Mini Options at a rate that is \1/10th\ the rate of
fees and rebates the Exchange provides for trading in Standard Options.
The Exchange believes it is reasonable and equitable and not unfairly
discriminatory to assess lower fees and rebates to provide market
participants an incentive to trade Mini Options on the Exchange. The
Exchange believes the proposed fees and rebates are reasonable and
equitable in light of the fact that Mini Options have a smaller
exercise and assignment value, specifically \1/10th\ that of a standard
option contract, and, as such, is providing fees and rebates for Mini
Options that are \1/10th\ of those applicable to Standard Options.

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

    In accordance with Section 6(b)(8) of the Act,\14\ the Exchange
does not believe that the proposed rule change will impose any burden
on intermarket or intramarket competition that is not necessary or
appropriate in furtherance of the purposes of the Act. To the contrary,
the Exchange believes that the proposed fee change will increase
competition by making it cheaper to enter or respond to PIM auctions.
The Exchange operates in a highly competitive market in which market
participants can readily direct their order flow to competing venues.
In such an environment, the Exchange must continually review, and
consider adjusting, its fees and rebates to remain competitive with
other exchanges. For the reasons described above, the Exchange believes
that the proposed fee changes reflect this competitive environment.
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    \14\ 15 U.S.C. 78f(b)(8).
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C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others

    The Exchange has not solicited, and does not intend to solicit,
comments on this proposed rule change. The Exchange has not received
any unsolicited written comments from members or other interested
parties.

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

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act,\15\ and subparagraph (f)(2) of Rule 19b-4
thereunder,\16\ because it establishes a due, fee, or other charge
imposed by ISE Gemini.
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    \15\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \16\ 17 CFR 240.19b-4(f)(2).
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    At any time within 60 days of the filing of such 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 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 No. SR-ISE Gemini-2015-02 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-ISE Gemini-2015-02. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; 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-ISE Gemini-2015-02 and
should be submitted on or before February 18, 2015.
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    \17\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
Brent J. Fields,
Secretary.
[FR Doc. 2015-01507 Filed 1-27-15; 8:45 am]
BILLING CODE 8011-01-P