[Federal Register Volume 81, Number 160 (Thursday, August 18, 2016)]
[Notices]
[Page 55187]
[FR Doc No: 2016-19754]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. ER16-2393-000]

Innovative Solar 31, LLC; Supplemental Notice That Initial
Market-Based Rate Filing Includes Request for Blanket Section 204
Authorization

    This is a supplemental notice in the above-referenced proceeding of
Innovative Solar 31, LLC's application for market-based rate authority,
with an accompanying rate tariff, noting that such application includes
a request for blanket authorization, under 18 CFR part 34, of future
issuances of securities and assumptions of liability.
    Any person desiring to intervene or to protest should file with the
Federal Energy Regulatory Commission, 888 First Street NE., Washington,
DC 20426, in accordance with Rules 211 and 214 of the Commission's
Rules of Practice and Procedure (18 CFR 385.211 and 385.214). Anyone
filing a motion to intervene or protest must serve a copy of that
document on the Applicant.
    Notice is hereby given that the deadline for filing protests with
regard to the applicant's request for blanket authorization, under 18
CFR part 34, of future issuances of securities and assumptions of
liability, is September 1, 2016.
    The Commission encourages electronic submission of protests and
interventions in lieu of paper, using the FERC Online links at http://www.ferc.gov. To facilitate electronic service, persons with Internet
access who will eFile a document and/or be listed as a contact for an
intervenor must create and validate an eRegistration account using the
eRegistration link. Select the eFiling link to log on and submit the
intervention or protests.
    Persons unable to file electronically should submit an original and
5 copies of the intervention or protest to the Federal Energy
Regulatory Commission, 888 First Street NE., Washington, DC 20426.
    The filings in the above-referenced proceeding are accessible in
the Commission's eLibrary system by clicking on the appropriate link in
the above list. They are also available for electronic review in the
Commission's Public Reference Room in Washington, DC. There is an
eSubscription link on the Web site that enables subscribers to receive
email notification when a document is added to a subscribed docket(s).
For assistance with any FERC Online service, please email
<EMAIL_ADDRESS>or call<PHONE_NUMBER> (toll free). For
TTY, call<PHONE_NUMBER>.

    Dated: August 12, 2016.
Kimberly D. Bose,
Secretary.
[FR Doc. 2016-19754 Filed 8-17-16; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register: April 17, 2009 (Volume 74, Number 73)]
[Notices]
[Page 17868-17869]
[DOCID:fr17ap09-75]

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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

[Docket No. FDA-2008-N-0657]

Agency Information Collection Activities; Submission for Office
of Management and Budget Review; Comment Request; Recommendations for
the Early Food Safety Evaluation of New Non-Pesticidal Proteins
Produced by New Plant Varieties Intended for Food Use

AGENCY: Food and Drug Administration, HHS.

ACTION: Notice.

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SUMMARY: The Food and Drug Administration (FDA) is announcing

that a proposed collection of information has been submitted to the
Office of Management and Budget (OMB) for review and clearance under
the Paperwork Reduction Act of 1995.

DATES: Fax written comments on the collection of information by May 18,
2009.

ADDRESSES: To ensure that comments on the information collection are
received, OMB recommends that written comments be faxed to the Office
of Information and Regulatory Affairs, OMB, Attn: FDA Desk Officer,
FAX:<PHONE_NUMBER>, or e-mailed to<EMAIL_ADDRESS>All
comments should be identified with the OMB control number 0910-0583.
Also include the FDA docket number found in brackets in the heading of
this document.

FOR FURTHER INFORMATION CONTACT: Jonna Capezzuto, Office of Information
Management (HFA-710), Food and Drug Administration, 5600 Fishers Lane,
Rockville, MD 20857,<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: In compliance with 44 U.S.C. 3507, FDA has
submitted the following proposed collection of information to OMB for
review and clearance.

Recommendations for the Early Food Safety Evaluation of New Non-
Pesticidal Proteins Produced by New Plant Varieties Intended for Food
Use--(OMB Control Number 0910-0583)--Extension

    Since May 29, 1992 (57 FR 22984), when FDA issued a policy
statement on foods derived from new plant varieties, FDA has encouraged
developers of new plant varieties, including those varieties that are
developed through biotechnology, to consult with FDA early in the
development process to discuss possible scientific and regulatory
issues that might arise. The guidance entitled ``Recommendations for
the Early Food Safety Evaluation of New Non-Pesticidal Proteins
Produced by New Plant Varieties Intended for Food Use'' continues to
foster early communication by encouraging developers to submit to FDA
their evaluation of the food safety of their new protein. Such
communication helps to ensure that any potential food safety issues
regarding a new protein in a new plant variety are resolved early in
development, prior to any possible inadvertent introduction into the
food supply of material from that plant variety.
    FDA believes that any food safety concern related to such material
entering the food supply would be limited to the potential that a new
protein in food from the plant variety could cause an allergic reaction
in susceptible individuals or could be a toxin. The guidance describes
the procedures for early food safety evaluation of new proteins in new
plant varieties, including bioengineered food plants, and the
procedures for communicating with FDA about the safety evaluation.
    The respondents to this collection of information are developers of
new plant varieties intended for food use.
    In the Federal Register of January 9, 2009 (74 FR 906), FDA
published a 60-day notice requesting public comment on the information
collection provisions. No comments were received.
    FDA estimates the burden of this collection of information as
follows:

                                                     Table 1.--Estimated Annual Reporting Burden\1\
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                              No. of         Annual Frequency       Total Annual        Hours Per
                                                           Respondents         per Response          Responses           Response         Total Hours
--------------------------------------------------------------------------------------------------------------------------------------------------------
First four data components                                             20                     1                 20                  4                 80
--------------------------------------------------------------------------------------------------------------------------------------------------------
Two other data components                                              20                     1                 20                 16                320
--------------------------------------------------------------------------------------------------------------------------------------------------------
Total                                                                                400
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ There are no capital costs or operating and maintenance costs associated with this collection of information.

    FDA estimates the annual total hour burden for this collection of
information to be 400 hours. This estimate is based on early food
safety evaluations submitted in the past 3 years. FDA's estimate of the
time that it would take a respondent to prepare the data components of
the early food safety evaluation submission is based on the agency's
experience with similar submissions.
    Completing an early food safety evaluation for a new protein from a
new plant variety is a one-time burden (one evaluation per new
protein). Based on its experience over the past 3 years, FDA estimates
that approximately 20 developers will choose to complete an early food
safety evaluation for their new plant protein. Many developers of novel
plants may choose not to submit an evaluation because the field testing
of a plant containing a new protein is conducted in such a way (e.g.,
on such a small scale, or in such isolated conditions, etc.) that
cross-pollination with traditional crops or commingling of plant
material is not likely to be an issue. Also, other developers may have
previously communicated with FDA about the food safety of a new plant
protein, for example, when the same protein was expressed in a
different crop.
    The early food safety evaluation for new proteins includes six main
data components. Four of these data components are easily and quickly
obtainable, having to do with the identity and source of the protein.
FDA estimates that completing these data components will take about 4
hours per evaluation. In table 1 of this document, row 1 shows that for
20 evaluations, the total burden for these 4 data components is 80
hours.
    Two data components ask for original data to be generated. One data
component consists of a bioinformatics analysis which can be performed
using publicly available databases. The other data component involves
``wet'' lab work to assess the new protein's stability and the
resistance of the protein to enzymatic degradation using appropriate in
vitro assays (protein digestibility study). The paperwork burden of
these two data components consists of the time it takes the company to
assemble the information on these two data components to submit to FDA.
We estimate that these two data components will take 16 hours to
complete (8 hours for each component). In table 1 of this document, row
2 shows that for 20 evaluations, the total burden for these two data
components is 320 hours.

    Dated: April 10, 2009.
Jeffrey Shuren,
Associate Commissioner for Policy and Planning.
[FR Doc. E9-8773 Filed 4-16-09; 8:45 am]

BILLING CODE 4160-01-S


UNITED STATES ENVIRONMENTAL PROTECTION AGENCY WASHINGTON, D. C. 20460 OFFICE OF PREVENTION, PESTICIDES AND TOXIC SUBSTANCES August 2, 2002 CERTIFIED MAIL Dear Registrant:

This is to inform you that the Environmental Protection Agency ( hereafter referred to as EPA or the Agency) has completed its tolerance reassessment decision for Asulam. This letter, signed on August 2, 2002, and the attached   Overview  document serve as EPA s   Report of the Food Quality Protection Act ( FQPA) Tolerance Reassessment Progress and Risk Management Decision ( TRED) for Asulam.  A Notice of Availability soliciting public comment for a 30 day period will be published in the Federal Register ( FR) shortly.

FFDCA, as amended, requires EPA to reassess all the tolerances that were in effect for registered chemicals on or before the date of the enactment of FQPA in August of 1996 against the new safety standard adopted in the FQPA. In reassessing these tolerances, the Agency must consider, among other things, aggregate risks from non occupational sources of pesticide exposure, whether there is increased susceptibility to infants and children, and the cumulative effects of pesticides with a common mechanism of toxicity. The tolerances are considered reassessed once the safety finding has been made or a modification or revocation occurs. A reregistration eligibility decision ( RED) for asulam was completed in September 1995 prior to FQPA enactment. Therefore, it needed to be updated to reassess the tolerances under the FQPA standard.

The Agency has evaluated the dietary risks associated with asulam and has determined that there is a reasonable certainty that no harm to any population subgroup will result from aggregate exposure to asulam when considering dietary exposure and all other non occupational sources of pesticide exposure for which there is reliable information. Therefore, no mitigation measures are needed, and the tolerances established for residues of asulam are now considered reassessed as safe under section 408( q) of the FFDCA. FQPA requires that EPA consider   available information  concerning the cumulative effects of a particular pesticide s residues and   other substances that have a common mechanism of toxicity.  The reason for consideration of other substances is due to the possibility that low level exposures to multiple chemical substances that cause a common toxic effect by a common mechanism could lead to the same adverse health effect, as would a higher level of exposure to any of the other substances individually. EPA did not perform a cumulative risk assessment as part of this review of asulam because the Agency has not determined that there are any other chemical substances that have a mechanism of toxicity in common with asulam. If EPA identifies other substances that share a common mechanism, then a cumulative risk assessment will be conducted that includes asulam once EPA s final framework for conducting cumulative risk assessments is available. Further, EPA is in the process of developing criteria for characterizing and testing endocrine disrupting chemicals and plans to implement an Endocrine Disruptor Screening Program. Asulam will be reevaluated at that time and additional studies may be required.

The Agency s human health findings for the pesticide asulam were discussed in a closure conference call on July 25, 2002, and are summarized in the attached,   Overview of Asulam Risk Assessment.  The risk assessment and other documents pertaining to the asulam tolerance reassessment decision are listed at the end of this document and are available on the Internet at http:// www. epa. gov/ pesticides/ reregistration/ status. htm and in the public docket for viewing.

Tolerances are established for residues of asulam in/ on raw agricultural commodities as defined in 40 CFR 180.180.360. The Agency recommends that the tolerance expression be revised to include all metabolites containing the sulfanilamide moiety. An adequate enforcement method is available for the determination of combined residues of asulam and all metabolites containing the sulfanilamide moiety in/ on sugarcane.

Additional data are required at this time. The registrant must submit label amendment requests for the use of asulam on sugarcane. The amendments must include lower maximum application rates and longer PHIs, and must be region specific, as given below. If the registrant request the suggested label changes, no further sugarcane field trial data are required for asulam at this time. No plantback restrictions are required on the label.

The Agency recommends that the registrant request label amendments specifying a maximum of two asulam applications per year to sugarcane at a maximum single application rate of 3.34 lbs. a. i./ A, a PHI of 100 days for Louisiana, a PHI of 140 days for the remainder of the US mainland, and a PHI of 400 days for Hawaii. If the registrant does not propose the recommended label changes, existing labels must be supported by new field trials.

In addition, the following product chemistry data guidelines remain unfulfilled for the technical sodium salt: GLN 830.6317 ( Storage Stability) and 830.6320 ( Corrosion Characteristics). The following tolerances have been reassessed:

  The registrant proposes for asulam residue in/ on cane of 0.05 ppm, resulting from 2 applications, each 3.34 lbs. a. i./ Acre, with a 100 day PHI. The data do not support this tolerance. For the proposed use pattern, the maximum residue, corrected for loss in storage, is 0.71 pp. A tolerance of 1.0 ppm is appropriate for residues of asulam and the sulfanilamide containing metabolites in/ on sugarcane. This replaces the current tolerance of 0.1 ppm.

  Based on the highest average field trial residue and the concentration factor from processing, a tolerance of 30 ppm is needed for asulam and sulfanilamide containing metabolite residues in molassess.

  The decrease in the sugarcane tolerance for asulam and its sulfanilamide containing metabolites from the reevaluated 15 ppm to 1 ppm does not alter the previous conclusion that residues of asulam and the sulfanilamide containing metabolites are anticipated in ruminant commodities from a diet containing 10% molasses. Animal commodity tolerances should be proposed, 0.05 ppm for ruminant milk and meat and fat and 0.2 ppm for ruminant meat byproducts. There are no significant poultry feed items; poultry commodity tolerances are not needed.

TOLERANCE REASSESSMENT SUMMARY Commodity Current Tolerance ( ppm) Tolerance Reassessment ( ppm) Comment Tolerances listed under 40 CFR § 180.360 Sugarcane, cane 0.1 1.0 Tolerances to be Established Under 40 CFR § 180.360 Sugarcane, molasses  30 Milk  0.05 Cattle, meat Cattle, fat Goat, meat Goat, fat Hog, meat Hog, fat Horse, meat Horse, fat Sheep, meat Sheep, fat . 05 Cattle, meat byproducts Goat, meat byproducts Hog, meat byproducts Horse, meat byproducts Sheep, meat byproducts . 2 0 0 This document also contains a generic Data Call In ( DCI) that outlines further data requirements for this chemical. Note that registrants of asulam must respond to DCIs issued by the Agency within 90 days of receipt of this letter.

If you have questions on this document, please contact the Chemical Review Manager, Demson Fuller , at ( 703) 308 8062.

Sincerely,

Lois A. Rossi, Director Special Review and Reregistration Division Attachments: List of Supporting Documents Overview of Asulam Risk Assessment Generic Data Call In ( DCI) List of Documents Supporting the Asulam Reassessment Decision The Tolerance Reassessment Decision for asulam is based on the revised human health risk findings, disciplinary chapters, and other supporting documentation as follows:

Asulam. HED Human Health Assessment for the tolerance Reassessment Eligibility Decision ( TRED). Chemical No. 106901/ 02. No MRID #. DP Barcode No. D276505. Jose Morales ( February 28, 2002)

Asulam  2nd Report of the Hazard Identification Assessment Review Committee. John Liccione ( December 5, 2001)

Asulam  Report of the FQPA Safety Factor Committee. Carol Christensen ( February 5, 2002)

Asulam. Toxicology Chapter of the RED. John Liccione ( October 12, 2001)

Asulam ( List A, Case 0265, Chemical 106901/ 02). Tolerance Reassessment Eligibility Decision Document. Product and Residue Chemistry Chapter. DP Barcode D278884. Jose Morales ( December 6, 2001)

Asulam. Chronic Dietary Exposure Assessment for the Tolerance Reasssement Eligibility Decision Document ( TRED), PC Codes 106901/ 02; DP Barcode D279592. Jose Morales ( December 18, 2001)

Asulam: Revised Tier I Drinking Water EECs for Use in the Human Health Risk Assessment. Jose Morales ( January 3, 2002)

Quantitative Usuage Analysis for Asulam. Alan Halvorson ( July 25, 2001) Generic Data Call In [ place holder  to be generated]


[Federal Register Volume 76, Number 233 (Monday, December 5, 2011)]
[Notices]
[Pages 75932-75939]
[FR Doc No: 2011-31044]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-65846; File No. SR-NYSEArca-2011-82]

 Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
of Proposed Rule Change Relating to the Listing and Trading of Shares
of the WisdomTree Emerging Markets Inflation Protection Bond Fund Under
NYSE Arca Equities Rule 8.600

November 29, 2011.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'' or ``Exchange Act'') \1\ and Rule 19b-4 thereunder,\2\ notice
is hereby given that, on November 14, 2011, 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 Exchange.
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

    The Exchange proposes to list and trade the shares of the following
fund of the WisdomTree Trust (``Trust'') under NYSE Arca Equities Rule
8.600 (``Managed Fund Shares''): WisdomTree Emerging Markets Inflation
Protection Bond Fund (``Fund''). The shares of the Fund are
collectively referred to herein as the ``Shares.'' The text of the
proposed rule change is available at the Exchange, the Commission's
Public Reference Room, and http://www.nyse.com.

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
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to list and trade the Shares of the
WisdomTree Emerging Markets Inflation Protection Bond Fund under NYSE
Arca Equities Rule 8.600, which governs the listing and trading of
Managed Fund Shares on the Exchange.\3\ The Fund will be an actively
managed exchange traded fund (``ETF''). The Shares will be offered by
the Trust, which was established as a Delaware statutory trust on
December 15, 2005. The Fund is registered with the Commission as an
investment company and the Fund has filed a registration statement on
Form N-1A (``Registration Statement'') with the Commission.\4\
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    \3\ The Commission has approved listing and trading on the
Exchange of a number of actively managed funds under Rule 8.600.
See, e.g., Securities Exchange Act Release Nos. 57801 (May 8, 2008),
73 FR 27878 (May 14, 2008) (SR-NYSEArca-2008-31) (order approving
Exchange listing and trading of twelve actively-managed funds of the
WisdomTree Trust); 58564 (September 17, 2008), 73 FR 55194
(September 24, 2008) (SR-NYSEArca-2008-86) (order approving Exchange
listing and trading of WisdomTree Dreyfus Emerging Markets Fund);
62604 (July 30, 2010), 75 FR 47323 (August 5, 2010) (SR-NYSEArca-
2010-49) (order approving Exchange listing and trading of WisdomTree
Emerging Markets Local Debt Fund); 63919 (February 16, 2011), 76 FR
10073 (February 23, 2011) (SR-NYSEArca-2010-116) (order approving
Exchange listing and trading of WisdomTree Asia Local Debt Fund);
65458 (September 30, 2011), 76 FR 62112 (October 6, 2011) (SR-
NYSEArca-2011-54) (order approving Exchange listing and trading of
WisdomTree Dreyfus Australia and New Zealand Debt Fund).
    \4\ See Post-Effective Amendment No. 54 to Registration
Statement on Form N-1A for the Trust, dated July 1, 2011 (File Nos.
333-132380 and 811-21864). The descriptions of the Fund and the
Shares contained herein are based, in part, on information in the
Registration Statement.
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Description of the Shares and the Fund
    WisdomTree Asset Management, Inc. (``WisdomTree Asset Management'')
is the investment adviser (``Adviser'') to the Fund.\5\ Mellon Capital
Management serves as sub-adviser for the Fund (``Sub-Adviser'').\6\ The
Bank of New York Mellon is the administrator, custodian and transfer
agent for the Trust. ALPS Distributors, Inc. (``Distributor'') serves
as the distributor for the Trust.\7\
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    \5\ WisdomTree Investments, Inc. (``WisdomTree Investments'') is
the parent company of WisdomTree Asset Management.
    \6\ The Sub-Adviser is responsible for day-to-day management of
the Fund and, as such, typically makes all decisions with respect to
portfolio holdings. The Adviser has ongoing oversight
responsibility.
    \7\ 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''). See Investment Company Act
Release No. 28171 (October 27, 2008) (File No. 812-13458)
(``Exemptive Order''). In compliance with Commentary .05 to NYSE
Arca Equities Rule 8.600, which applies to Managed Fund Shares based
on an international or global portfolio, the Trust's application for
exemptive relief under the 1940 Act states that the Fund will comply
with the federal securities laws in accepting securities for
deposits and satisfying redemptions with redemption securities,
including that the securities accepted for deposits and the
securities used to satisfy redemption requests are sold in
transactions that would be exempt from registration under the
Securities Act of 1933 (15 U.S.C. 77a).
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    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.\8\ 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. Commentary .06 to
Rule 8.600 is similar to Commentary .03(a)(i) and (iii) to NYSE Arca
Equities Rule 5.2(j)(3); however, Commentary .06 in connection with the
establishment of a ``fire wall'' between the investment adviser and the
broker-dealer reflects the applicable open-end fund's portfolio, not an
underlying benchmark index, as is the case with index-based funds.
WisdomTree Asset Management is not affiliated with any broker-dealer.
The Sub-Adviser is affiliated with multiple broker-dealers and has
implemented a ``fire wall'' with respect to such broker-dealers
regarding access to information concerning the composition and/or
changes to the Fund's portfolio. In addition, Sub-Adviser personnel who
make decisions regarding the Fund's portfolio are subject to procedures
designed to prevent the use and dissemination of material nonpublic
information regarding the Fund's portfolio. In the event (a) the
Adviser or the Sub-Adviser becomes newly affiliated with a broker-
dealer, or (b) any new adviser or sub-adviser becomes affiliated with a
broker-dealer, it will implement a fire wall with respect to such
broker-dealer regarding access to information concerning the
composition and/or changes to the 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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    \8\ An investment adviser to an open-end fund is required to be
registered under the Investment Advisers Act of 1940 (``Advisers
Act''). As a result, the Adviser and Sub-Adviser and their related
personnel are subject to the provisions of Rule 204A-1 under the
Advisers Act relating to codes of ethics. This Rule requires
investment advisers to adopt a code of ethics that reflects the
fiduciary nature of the relationship to clients as well as
compliance with other applicable securities laws. Accordingly,
procedures designed to prevent the communication and misuse of non-
public information by an investment adviser must be consistent with
Rule 204A-1 under the Advisers Act. In addition, Rule 206(4)-7 under
the Advisers Act makes it unlawful for an investment adviser to
provide investment advice to clients unless such investment adviser
has (i) adopted and implemented written policies and procedures
reasonably designed to prevent violation, by the investment adviser
and its supervised persons, of the Advisers Act and the Commission
rules adopted thereunder; (ii) implemented, at a minimum, an annual
review regarding the adequacy of the policies and procedures
established pursuant to subparagraph (i) above and the effectiveness
of their implementation; and (iii) designated an individual (who is
a supervised person) responsible for administering the policies and
procedures adopted under subparagraph (i) above.
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WisdomTree Emerging Markets Inflation Protection Bond Fund
    According to the Registration Statement, the Fund seeks to provide
a high level of income and capital appreciation representative of
investments in inflation-linked debt of

emerging market issuers.\9\ To achieve its objective, the Fund will
invest in Fixed Income Securities (defined below) and other instruments
designed to provide protection against inflation.
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    \9\ According to the Adviser, while there is no universally
accepted definition of what constitutes an ``emerging market,'' in
general, emerging market countries are characterized by developing
commercial and financial infrastructure with significant potential
for economic growth and increased capital market participation by
foreign investors. The Adviser and Sub-Adviser look at a variety of
commonly-used factors when determining whether a country is an
``emerging'' market. In general, the Adviser and Sub-Adviser
consider a country to be an emerging market if:
    (1) It is either (a) classified by the World Bank in the lower
middle or upper middle income designation for one of the past 3
years (i.e., per capita gross national product of less than U.S.
$9,385), or (b) classified by the World Bank as high income in each
of the last three years, but with a currency that has been primarily
traded on a non-delivered basis by offshore investors (e.g., Korea
and Taiwan);
    (2) the country's debt market is considered relatively
accessible by foreign investors in terms of capital flow and
settlement considerations; and
    (3) the country has issued the equivalent of $5 billion in local
currency sovereign debt. The criteria used to evaluate whether a
country is an ``emerging market'' will change from time to time
based on economic and other events.
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Fixed Income Securities
    The Fund intends to achieve its investment objectives through
direct and indirect investments in inflation-protected Fixed Income
Securities of emerging market countries.\10\ For these purposes, Fixed
Income Securities include bonds, notes or other debt obligations, such
as government or corporate bonds, denominated in local currencies or
U.S. dollars, as well as issues denominated in emerging market local
currencies that are issued by ``supranational issuers,'' such as the
International Bank for Reconstruction and Development and the
International Finance Corporation, as well as development agencies
supported by other national governments. The Fund expects that it will
have at least 70% of its assets invested in Fixed Income Securities.
The Fund will invest in Fixed Income Securities linked to inflation
rates in emerging markets throughout the world. The Fund may invest in
Fixed Income Securities that are not linked to inflation, such as U.S.
or non-U.S. government bonds, as well as Fixed Income Securities that
pay variable or floating rates. The Fund may also invest in Money
Market Securities and derivative instruments, as described below.
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    \10\ As of October 31, 2011, the total market capitalization of
inflation-linked bonds in the Barclays Capital World Inflation
Linked Index, a leading index of inflation-linked bonds in developed
markets outside the United States, was approximately $1.06 trillion.
As of October 31, 2011, the total market capitalization of
inflation-linked bonds in the Barclays Capital Emerging Markets
Government Inflation Linked Bond Index, a leading index of
inflation-linked debt issued by emerging market governments, was
approximately $452.9 billion. The Adviser represents that inflation-
linked bonds outside the United States are issued in large par size
(i.e., $200 million or more) and tend to be liquid. Locally-
denominated debt issued by supra-national entities, such as the
European Investment Bank or the International Bank for
Reconstruction and Development, is also actively traded. Email from
Timothy J. Malinowski, Senior Director, NYSE Euronext, to Edward Y.
Cho, Special Counsel, and Daniel T. Gien, Special Counsel, Division
of Trading and Markets, Commission, dated November 23, 2011.
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    The Fund intends to invest in inflation-linked Fixed Income
Securities of issuers in the following regions: Asia, Latin America,
Eastern Europe, Africa and the Middle East. Within these regions, the
Fund is likely to invest in countries such as Brazil, Chile, Colombia,
Hungary, Indonesia, Malaysia, Mexico, Peru, Philippines, Poland,
Russia, South Africa, South Korea, Thailand and Turkey, although this
list may change as market developments occur and may include additional
emerging market countries that conform to selected ratings, liquidity
and other criteria. As a general matter, and subject to the Fund's
investment guideline to provide exposure across geographic regions and
countries, the Fund generally will invest a higher percentage of its
assets in countries with larger and more liquid debt markets. The
Fund's exposure to any single country generally will be limited to 20%
of the Fund's assets. The percentage of Fund assets invested in a
specific region, country or issuer will change from time to time. While
the Fund is permitted to invest in developed market economies, this is
not a focus of the Fund.\11\
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    \11\ The Fund expects that it will initially hold inflation-
linked debt issued by the following emerging market governments:
Brazil ($255,861 million outstanding); Chile ($12,689 million
outstanding); Colombia ($2,583 million outstanding); Israel ($38,757
million outstanding); Mexico ($50,506 million outstanding); Poland
($5,611 million outstanding); South Africa ($29,316 million
outstanding); South Korea ($4,371 million outstanding); Thailand
($1,343 million outstanding); and Turkey ($39,048 million
outstanding). Outstanding amounts of debt are as of October 31, 2011
(Sources: Barclays Capital Emerging Markets Government Inflation
linked Bond Index; and http://www.channelnewsasia.com/stories/singaporebusinessnews/view/1141179/1/.html (for Thailand)). Email
from Timothy J. Malinowski, Senior Director, NYSE Euronext, to
Edward Y. Cho, Special Counsel, and Daniel T. Gien, Special Counsel,
Division of Trading and Markets, Commission, dated November 23,
2011.
---------------------------------------------------------------------------

    The Fund expects that it will have at least 70% of its assets
invested in investment grade securities, and no more than 30% of its
assets invested in non-investment grade securities. Because the debt
ratings of issuers will change from time to time, the exact percentage
of the Fund's investments in investment grade and non-investment grade
Fixed Income Securities will change from time to time in response to
economic events and changes to the credit ratings of such issuers.
Within the non-investment grade category some issuers and instruments
are considered to be of lower credit quality and at higher risk of
default. In order to limit its exposure to these more speculative
credits, the Fund will not invest more than 10% of its assets in
securities rated BB or below by Moody's, or equivalently rated by S&P
or Fitch. The Fund does not intend to invest in unrated securities.
However, it may do so to a limited extent, such as where a rated
security becomes unrated, if such security is determined by the Adviser
and Sub-Adviser to be of comparable quality. In determining whether a
security is of ``comparable quality'', the Adviser and Sub-Adviser will
consider, for example, whether the issuer of the security has issued
other rated securities.
    While the Fund intends to focus its investments in Fixed Income
Securities on bonds and other obligations of governments and agencies
of emerging market countries, the Fund may invest up to 20% of its net
assets in corporate bonds. The Fund will invest only in corporate bonds
that the Adviser or Sub-Adviser deems to be sufficiently liquid.\12\
Generally a corporate bond must have $200 million or more par amount
outstanding and significant par value traded to be considered as an
eligible investment. Economic and other conditions may, from time to
time, lead to a decrease in the average par amount outstanding of bond
issuances. Therefore, although the Fund does not

intend to do so, the Fund may invest up to 5% of its net assets in
corporate bonds with less than $200 million par amount outstanding if
(i) the Adviser or Sub-Adviser deems such security to be sufficiently
liquid based on its analysis of the market for such security (based on,
for example, broker-dealer quotations or its analysis of the trading
history of the security or the trading history of other securities
issued by the issuer), (ii) such investment is deemed by the Adviser or
Sub-Adviser to be in the best interest of the Fund, and (iii) such
investment is deemed consistent with the Fund's goal of providing broad
exposure to inflation-linked Fixed Income Securities.
---------------------------------------------------------------------------

    \12\ The Adviser represents that the size and liquidity of the
global market for corporate bonds of emerging market issuers
generally has been increasing in recent years. The aggregate dollar
amount of emerging market corporate bonds traded in the second
quarter of 2011 ($221 billion) was comparable to the volumes seen in
the first quarter of 2010 ($201 billion). The $514 billion traded in
2009 represented a substantial increase over the amount traded in
2008 ($380 billion). Turnover in emerging market corporate debt as
an overall percentage of emerging market debt has also increased
significantly. Turnover in emerging market corporate debt for 2010
was approximately 13.0% of the overall volume of emerging market
debt of $6.765 trillion for the same period. This is similar to
calendar year 2009 where turnover in emerging market corporate debt
accounted for 12% of the overall volume of emerging market debt of
$6 trillion in 2009, an increase over the 9% share in 2008 (Source:
Emerging Markets Traders Association Press Release(s), March 22,
2011, December 8, 2010, August 12, 2010, May 20, 2010 and March 8,
2010). Email from Timothy J. Malinowski, Senior Director, NYSE
Euronext, to Edward Y. Cho, Special Counsel, and Daniel T. Gien,
Special Counsel, Division of Trading and Markets, Commission, dated
November 23, 2011.
---------------------------------------------------------------------------

    The Fund may invest in Fixed Income Securities with effective or
final maturities of any length. The Fund will seek to keep the average
effective duration of its portfolio between 2 and 8 years. Effective
duration is an indication of an investment's interest rate risk or how
sensitive an investment or a fund is to changes in interest rates.
Generally, a fund or instrument with a longer effective duration is
more sensitive to interest rate fluctuations, and, therefore, more
volatile, than a fund with a shorter effective duration. The Fund's
actual portfolio duration may be longer or shorter depending on market
conditions.
    The Fund intends to invest in Fixed Income Securities of at least
13 non-affiliated issuers. The Fund will not concentrate 25% or more of
the value of its total assets (taken at market value at the time of
each investment) in any one industry, as that term is used in the 1940
Act (except that this restriction does not apply to obligations issued
by the U.S. government, or any non-U.S. government, or their respective
agencies and instrumentalities or government-sponsored
enterprises).\13\
---------------------------------------------------------------------------

    \13\ See Form N-1A, Item 9. The Commission has taken the
position that a fund is concentrated if it invests more than 25% of
the value of its total assets in any one industry. See, e.g.,
Investment Company Act Release No. 9011 (October 30, 1975), 40 FR
54241 (November 21, 1975).
---------------------------------------------------------------------------

    The Fund intends to qualify each year as a regulated investment
company (``RIC'') under Subchapter M of the Internal Revenue Code of
1986, as amended.\14\ The Fund will invest its assets, and otherwise
conduct its operations, in a manner that is intended to satisfy the
qualifying income, diversification and distribution requirements
necessary to establish and maintain RIC qualification under Subchapter
M. The Subchapter M diversification tests generally require that (i)
the Fund invest no more than 25% of its total assets in securities
(other than securities of the U.S. government or other RICs) of any one
issuer or two or more issuers that are controlled by the Fund and that
are engaged in the same, similar or related trades or businesses, and
(ii) at least 50% of the Fund's total assets consist of cash and cash
items, U.S. government securities, securities of other RICs and other
securities, with investments in such other securities limited in
respect of any one issuer to an amount not greater than 5% of the value
of the Fund's total assets and 10% of the outstanding voting securities
of such issuer.
---------------------------------------------------------------------------

    \14\ 26 U.S.C. 851.
---------------------------------------------------------------------------

    In addition to satisfying the above referenced RIC diversification
requirements, no portfolio security held by the Fund (other than U.S.
government securities and non-U.S. government securities) will
represent more than 30% of the weight of the Fund's portfolio and the
five highest weighted portfolio securities of the Fund (other than U.S.
government securities and/or non-U.S. government securities) will not
in the aggregate account for more than 65% of the weight of the Fund's
portfolio. For these purposes, the Fund may treat repurchase agreements
collateralized by U.S. government securities or non-U.S. government
securities as U.S. or non-U.S. government securities, as applicable.
Money Market Securities
    The Fund intends to invest in Money Market Securities in order to
help manage cash flows in and out of the Fund, such as in connection
with payment of dividends or expenses, and to satisfy margin
requirements, to provide collateral or to otherwise back investments in
derivative instruments. For these purposes, Money Market Securities
include: Short-term, high-quality obligations issued or guaranteed by
the U.S. Treasury or the agencies or instrumentalities of the U.S.
government; short-term, high-quality securities issued or guaranteed by
non-U.S. governments, agencies and instrumentalities; repurchase
agreements backed by short-term U.S. government securities or non-U.S.
government securities; money market mutual funds; and deposits and
other obligations of U.S. and non-U.S. banks and financial
institutions. All Money Market Securities acquired by the Fund will be
rated investment grade. The Fund does not intend to invest in any
unrated Money Market Securities. However, it may do so to a limited
extent, such as where a rated Money Market Security becomes unrated, if
such Money Market Security is determined by the Adviser and Sub-Adviser
to be of comparable quality.
Derivative Instruments and Other Investments
    Consistent with the Exemptive Order, the Fund may use derivative
instruments as part of its investment strategies. Examples of
derivative instruments include exchange-listed futures contracts,
forward currency contracts, non-deliverable forward currency contracts,
currency swaps, interest rate swaps, inflation rate swaps, currency
options, options on futures contracts, swap agreements and structured
notes. The Fund's use of derivatives contracts (other than structured
notes) will be collateralized or otherwise backed by investments in
short-term, high quality U.S. Money Market Securities.
    The Fund expects that no more than 30% of the value of the Fund's
net assets will be invested in derivative instruments. Such investments
will be consistent with the Fund's investment objective and will not be
used to enhance leverage. For example, the Fund may engage in swap
transactions that provide exposure to inflation rates, inflation-linked
bonds, inflation-sensitive indices or interest rates.\15\ The Fund also
may buy or sell listed futures contracts on U.S. Treasury securities,
non-U.S. government securities and major non-U.S. currencies.\16\
---------------------------------------------------------------------------

    \15\ An inflation-linked swap is an agreement between two
parties to exchange payments at a future date based on the
difference between a fixed payment and a payment linked to an
inflation rate or value at a future date. A typical interest rate
swap involves the exchange of a floating interest rate payment for a
fixed interest payment.
    \16\ The exchange-listed futures contracts in which the Fund may
invest may be listed on exchanges in the U.S., London, Hong Kong or
Singapore. Each of the United Kingdom's primary financial markets
regulator, the Financial Services Authority, Hong Kong's primary
financial markets regulator, the Securities and Futures Commission,
and Singapore's primary financial markets regulator, the Monetary
Authority of Singapore, are signatories to the International
Organization of Securities Commissions (``IOSCO'') Multilateral
Memorandum of Understanding (``MMOU''), which is a multi-party
information sharing arrangement among financial regulators. Both the
Commission and the Commodity Futures Trading Commission are
signatories to the IOSCO MMOU.
---------------------------------------------------------------------------

    With respect to certain kinds of derivative transactions entered
into by the Fund that involve obligations to make future payments to
third parties, including, but not limited to, futures and forward
contracts, swap contracts, the purchase of securities on a when-issued
or delayed delivery basis, or reverse repurchase agreements, the Fund,
in accordance with applicable federal securities laws, rules, and

interpretations thereof, will ``set aside'' liquid assets, or engage in
other measures to ``cover'' open positions with respect to such
transactions.\17\
---------------------------------------------------------------------------

    \17\ See 15 U.S.C. 80a-18; Investment Company Act Release No.
10666 (April 18, 1979), 44 FR 25128 (April 27, 1979); Dreyfus
Strategic Investing, Commission No-Action Letter (June 22, 1987);
Merrill Lynch Asset Management, L.P., Commission No-Action Letter
(July 2, 1996).
---------------------------------------------------------------------------

    The Fund may engage in foreign currency transactions, and may
invest directly in foreign currencies in the form of bank and financial
institution deposits, certificates of deposit, and bankers acceptances
denominated in a specified non-U.S. currency. The Fund may enter into
forward currency contracts in order to ``lock in'' the exchange rate
between the currency it will deliver and the currency it will receive
for the duration of the contract.\18\
---------------------------------------------------------------------------

    \18\ The Fund will invest only in currencies, and instruments
that provide exposure to such currencies, that are have significant
foreign exchange turnover and are included in the Bank for
International Settlements, Triennial Central Bank Survey, Report on
Global Foreign Exchange Market Activity in 2010 (December 2010)
(``BIS Survey''). The Fund may invest in currencies, and instruments
that provide exposure to such currencies, selected from the top 40
currencies (as measured by percentage share of average daily
turnover for the applicable month and year) included in the BIS
Survey.
---------------------------------------------------------------------------

    The Fund may invest in the securities of other investment companies
(including money market funds and ETFs). The Fund may invest up to an
aggregate amount of 15% of its net assets in (a) illiquid securities
and (2) Rule 144A securities. The Commission staff has interpreted the
term ``illiquid'' in this context to mean a security that cannot be
sold or disposed of within seven days in the ordinary course of
business at approximately the amount at which a fund has valued such
security.\19\
---------------------------------------------------------------------------

    \19\ 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
14617 (March 18, 2008), footnote 34. See also, Investment Company
Act Release No. 5847 (October 21, 1969), 35 FR 19989 (December 31,
1970) (Statement Regarding ``Restricted Securities''); Investment
Company Act Release No. 18612 (March 12, 1992), 57 FR 9828 (March
20, 1992) (Revisions of Guidelines to Form N-1A). A fund's portfolio
security is illiquid if it cannot be disposed of in the ordinary
course of business within seven days at approximately the value
ascribed to it by the fund. See Investment Company Act Release No.
14983 (March 12, 1986), 51 FR 9773 (March 21, 1986) (adopting
amendments to Rule 2a-7 under the 1940 Act); Investment Company Act
Release No. 17452 (April 23, 1990), 55 FR 17933 (April 30, 1990)
(adopting Rule 144A under the Securities Act of 1933).
---------------------------------------------------------------------------

    The Fund will not invest in any non-U.S. equity securities.
The Shares
    The Fund will issue and redeem Shares on a continuous basis at net
asset value (``NAV'') \20\ only in large blocks of Shares (``Creation
Units'') in transactions with Authorized Participants. Creation Units
generally consist of 100,000 Shares, though this may change from time
to time. Creation Units are not expected to consist of less than 50,000
Shares. The Fund will issue and redeem Creation Units in exchange for a
portfolio of Fixed Income Securities closely approximating the holdings
of the Fund or a designated basket of non-U.S. currency and/or an
amount of U.S. cash. Once created, Shares of the Fund will trade on the
secondary market in amounts less than a Creation Unit.
---------------------------------------------------------------------------

    \20\ The NAV of the Fund's Shares generally will be calculated
once daily Monday through Friday as of the close of regular trading
on the New York Stock Exchange, generally 4 p.m. Eastern time (``NAV
Calculation Time''). NAV per Share will be calculated by dividing
the Fund's net assets by the number of Fund Shares outstanding. For
more information regarding the valuation of Fund investments in
calculating the Fund's NAV, see Registration Statement.
---------------------------------------------------------------------------

    Creations and redemptions must be made by an Authorized Participant
or through a firm that is either a member of the National Securities
Clearing Corporation or a Depository Trust Company participant, and in
each case, must have executed an agreement with the Distributor with
respect to creations and redemptions of Creation Unit aggregations.
    Additional information regarding the Shares and the Fund, including
investment strategies, risks, creation and redemption procedures, fees,
portfolio holdings disclosure policies, distributions and taxes, is
included in the Registration Statement.
Availability of Information
    The Fund's Web site (http://www.wisdomtree.com), which will be
publicly available prior to the public offering of Shares, will include
a form of the prospectus for the Fund that may be downloaded. The Web
site will include additional quantitative information updated on a
daily basis, including, for the Fund: (1) The prior business day's
reported NAV, mid-point of the bid/ask spread at the time of
calculation of such NAV (``Bid/Ask Price''),\21\ and a calculation of
the premium and discount of the Bid/Ask Price against the NAV; and (2)
data in chart format displaying the frequency distribution of discounts
and premiums of the daily Bid/Ask Price against the NAV, within
appropriate ranges, for each of the four previous calendar quarters. On
each business day, before commencement of trading in Shares in the Core
Trading Session \22\ on the Exchange, the Trust will disclose on its
Web site the identities and quantities of the portfolio of securities
and other assets (``Disclosed Portfolio'') held by the Fund that will
form the basis for the Fund's calculation of NAV at the end of the
business day.\23\ The Disclosed Portfolio will include, as applicable,
the names, quantity, percentage weighting and market value of Fixed
Income Securities, and other assets held by the Fund and the
characteristics of such assets. The Web site information will be
publicly available at no charge.
---------------------------------------------------------------------------

    \21\ The Bid/Ask Price of the Fund will be determined using the
midpoint of the highest bid and the lowest offer on the Exchange as
of the time of calculation of such Fund's NAV. The records relating
to Bid/Ask Prices will be retained by the Fund and its service
providers.
    \22\ The Core Trading Session is 9:30 a.m. to 4 p.m. Eastern
time.
    \23\ Under accounting procedures to be followed by the Fund,
trades made on the prior business day (``T'') will be booked and
reflected in NAV on the current business day (``T+1'').
Notwithstanding the foregoing, portfolio trades that are executed
prior to the opening of the Exchange on any business day may be
booked and reflected in NAV on such business day. Accordingly, the
Fund will be able to disclose at the beginning of the business day
the portfolio that will form the basis for the NAV calculation at
the end of the business day.
---------------------------------------------------------------------------

    Intra-day, executable price quotations on emerging market Fixed
Income Securities, as well as Money Market Securities and derivative
instruments are available from major broker-dealer firms. Intra-day
price information is available through subscription services, such as
Bloomberg and Thomson Reuters, which can be accessed by authorized
participants and other investors. Information regarding market price
and volume of the Shares is and will be continually available on a
real-time basis throughout the day on brokers' computer screens and
other electronic services. The previous day's closing price and trading
volume information for the Shares will be published daily in the
financial section of newspapers. Quotation and last sale information
for the Shares will be available via the Consolidated Tape Association
(``CTA'') high-speed line.
    In addition, for the Fund, an estimated value, defined in Rule
8.600 as the Portfolio Indicative Value (``PIV'') that reflects an
estimated intraday value of the Fund's portfolio, will be disseminated.
The PIV will be based upon the current value for the components of the
Disclosed Portfolio and will be widely disseminated by one or more
major market data vendors at least every 15 seconds during the Core

Trading Session on the Exchange.\24\ In addition, during hours when the
markets for Fixed Income Securities in the Fund's portfolio are closed,
the PIV will be updated at least every 15 seconds during the Core
Trading Session to reflect currency exchange fluctuations.
---------------------------------------------------------------------------

    \24\ Currently, it is the Exchange's understanding that several
major market data vendors display and/or make widely available PIVs
published on CTA or other data feeds.
---------------------------------------------------------------------------

    The dissemination of the PIV, together with the Disclosed
Portfolio, will allow investors to determine the value of the
underlying portfolio of the Fund on a daily basis and to provide a
close estimate of that value throughout the trading day.
Initial and Continued Listing
    The Shares will be subject to Rule 8.600, which sets forth the
initial and continued listing criteria applicable to Managed Fund
Shares. The Exchange represents that, for initial and/or continued
listing, the Fund must be in compliance with Rule 10A-3 under the
Exchange Act,\25\ 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.
---------------------------------------------------------------------------

    \25\ 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 Fund. Shares of the Fund will be halted if
the ``circuit breaker'' parameters in NYSE Arca Equities Rule 7.12 are
reached. 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 comprising
the Disclosed Portfolio of the Fund; or (2) whether other unusual
conditions or circumstances detrimental to the maintenance of a fair
and orderly market are present. Trading in the Shares will be subject
to Rule 8.600(d)(2)(D), which sets forth circumstances under which
Shares of the Fund may be halted.
Trading Rules
    The Exchange deems the Shares to be equity securities, thus
rendering trading in the Shares subject to the Exchange's existing
rules governing the trading of equity securities. Shares will trade on
the NYSE Arca Marketplace from 4 a.m. to 8 p.m. Eastern time in
accordance with NYSE Arca Equities Rule 7.34 (Opening, 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, Commentary .03, 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.
Surveillance
    The Exchange intends to utilize its existing surveillance
procedures applicable to derivative products (which includes Managed
Fund Shares) to monitor trading in the Shares. The Exchange represents
that these procedures are adequate to properly monitor Exchange trading
of the Shares in all trading sessions and to deter and detect
violations of Exchange rules and applicable federal securities laws.
    The Exchange's current trading surveillance focuses on detecting
securities trading outside their normal patterns. When such situations
are detected, surveillance analysis follows and investigations are
opened, where appropriate, to review the behavior of all relevant
parties for all relevant trading violations.
    The Exchange may obtain information via the Intermarket
Surveillance Group (``ISG'') from other exchanges who are members of
the ISG or with which the Exchange has entered into a comprehensive
surveillance sharing agreement.\26\
---------------------------------------------------------------------------

    \26\ For a list of the current members of ISG, see http://www.isgportal.org. The Exchange notes that not all of the components
of the Disclosed Portfolio for the Fund may trade on exchanges that
are members of the ISG or with which the Exchange has in place a
comprehensive surveillance sharing agreement.
---------------------------------------------------------------------------

    In addition, the Exchange also has a general policy prohibiting the
distribution of material, non-public information by its employees.
Information Bulletin
    Prior to the commencement of trading, the Exchange will inform its
Equity Trading Permit (``ETP'') Holders in an Information Bulletin
(``Bulletin'') of the special characteristics and risks associated with
trading the Shares. 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 ETP Holders to learn the essential facts
relating to every customer prior to trading the Shares; (3) the risks
involved in trading the Shares during the Opening and Late Trading
Sessions when an updated PIV will not be calculated or publicly
disseminated; (4) how information regarding the PIV is disseminated;
(5) the requirement that ETP Holders deliver a prospectus to investors
purchasing newly issued Shares prior to or concurrently with the
confirmation of a transaction; and (6) trading information.
    In addition, the Bulletin will reference that the Fund is subject
to various fees and expenses described in the Registration Statement.
The Bulletin will discuss any exemptive, no-action, and interpretive
relief granted by the Commission from any rules under the Exchange Act.
The Bulletin will also disclose that the NAV for the Shares will be
calculated after 4 p.m. Eastern time each trading day.
2. Statutory Basis
    The basis under the Exchange Act for this proposed rule change is
the requirement under Section 6(b)(5) \27\ 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.
---------------------------------------------------------------------------

    \27\ 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 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. The Sub-Adviser is affiliated with multiple broker-dealers
and has implemented a ``fire wall'' with

respect to such broker-dealers regarding access to information
concerning the composition and/or changes to the Fund's portfolio. In
addition, Sub-Adviser personnel who make decisions regarding the Fund's
portfolio are subject to procedures designed to prevent the use and
dissemination of material nonpublic information regarding the Fund's
portfolio. According to the Registration Statement, the Fund expects
that it will have at least 70% of its assets invested in Fixed Income
Securities. The Fund's exposure to any single country generally will be
limited to 20% of the Fund's assets. The Fund expects that it will have
at least 70% of its assets invested in investment grade securities, and
no more than 30% of its assets invested in non-investment grade
securities. The Fund will not invest more than 10% of its assets in
securities rated BB or below by Moody's, or equivalently rated by S&P
or Fitch. The Fund may invest up to 20% of its net assets in corporate
bonds. The Fund will invest only in corporate bonds that the Adviser or
Sub-Adviser deems to be sufficiently liquid and, generally, a corporate
bond must have $200 million or more par amount outstanding and
significant par value traded to be considered as an eligible
investment. The Fund expects that no more than 30% of the value of the
Fund's net assets will be invested in derivative instruments. Such
investments will be consistent with the Fund's investment objective.
Such investments also will not be used to enhance leverage. The Fund
will not invest in any non-U.S. equity securities.
    The proposed rule change is designed to promote just and equitable
principles of trade and to protect investors and the public interest in
that the Exchange will obtain a representation from the issuer of the
Shares that the NAV per Share will be calculated daily and that the NAV
and the Disclosed Portfolio will be made available to all market
participants at the same time. In addition, a large amount of
information is publicly available regarding the Fund and the Shares,
thereby promoting market transparency. The Fund's portfolio holdings
will be disclosed on its Web site daily after the close of trading on
the Exchange and prior to the opening of trading on the Exchange the
following day. Moreover, the PIV will be widely by one or more major
market data vendors at least every 15 seconds during the Exchange's
Core Trading Session. On each business day, before commencement of
trading in Shares in the Core Trading Session on the Exchange, the Fund
will disclose on its Web site the Disclosed Portfolio that will form
the basis for the Fund's calculation of NAV at the end of the business
day. Information regarding market price and trading volume of the
Shares is and 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 Web site for the Fund will include a form
of the prospectus for the Fund and additional data relating to NAV and
other applicable quantitative information. Moreover, prior to the
commencement of trading, the Exchange will inform its ETP Holders in an
Information Bulletin of the special characteristics and risks
associated with trading the Shares. Trading in Shares of the Fund 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, and 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 Fund may be halted. In addition, as noted above,
investors will have ready access to information regarding the Fund's
holdings, the PIV, the Disclosed Portfolio, and quotation and last sale
information for the Shares.
    The 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
an additional type of actively-managed exchange-traded product 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 the Fund's holdings,
the PIV, the 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 purposes of the Act.

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

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-NYSEArca-2011-82 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-NYSEArca-2011-82. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the

Commission and any person, other than those that may be withheld from
the public in accordance with the provisions of 5 U.S.C. 552, will be
available for Web site viewing and printing in the Commission's Public
Reference Room, 100 F Street NE., Washington, DC 20549, on official
business days between the hours of 10 a.m. and 3 p.m. Copies of such
filing also will be available for inspection and copying at the
principal office of the Exchange. All comments received will be posted
without change; the Commission does not edit personal identifying
information from submissions. You should submit only information that
you wish to make available publicly. All submissions should refer to
File Number SR-NYSEArca-2011-82 and should be submitted on or before
December 27, 2011.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\28\
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    \28\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2011-31044 Filed 12-2-11; 8:45 am]
BILLING CODE 8011-01-P