[Federal Register Volume 87, Number 16 (Tuesday, January 25, 2022)]
[Rules and Regulations]
[Pages 3646-3648]
[FR Doc No: 2022-01281]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 71

[Docket No. FAA-2021-0922; Airspace Docket No. 21-AEA-30]
RIN 2120-AA66

Amendment of Class D and Class E Airspace; Philadelphia, PA

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

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SUMMARY: This action amends Class D airspace, Class E surface airspace,
and Class E airspace extending upward from 700 feet above the surface
in the Philadelphia, PA area, by updating the several airport names and
geographic coordinates. Controlled airspace is

necessary for the safety and management of instrument flight rules
(IFR) operations in the area.

DATES: Effective 0901 UTC, March 24, 2022. The Director of the Federal
Register approves this incorporation by reference action under 1 CFR
part 51, subject to the annual revision of FAA Order JO 7400.11 and
publication of conforming amendments.

ADDRESSES: FAA Order JO 7400.11F, Airspace Designations and Reporting
Points, and subsequent amendments can be viewed online at https://www.faa.gov/air_traffic/publications/. For further information, you can
contact the Airspace Policy Group, Federal Aviation Administration, 800
Independence Avenue SW, Washington, DC 20591; Telephone: (202) 267-
8783. The Order is also available for inspection at the National
Archives and Records Administration (NARA). For information on the
availability of FAA Order JO 7400.11F at NARA, email
[email protected] or go to https://www.archives.gov/federal-register/cfr/ibr-locations.html.

FOR FURTHER INFORMATION CONTACT: John Fornito, Operations Support
Group, Eastern Service Center, Federal Aviation Administration, 1701
Columbia Ave., College Park, GA 30337; Telephone<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Authority for This Rulemaking

    The FAA's authority to issue rules regarding aviation safety is
found in Title 49 of the United States Code. Subtitle I, Section 106,
describes the authority of the FAA Administrator. Subtitle VII,
Aviation Programs, describes in more detail the scope of the agency's
authority. This rulemaking is promulgated under the authority described
in Subtitle VII, Part A, Subpart I, Section 40103. Under that section,
the FAA is charged with prescribing regulations to assign the use of
airspace necessary to ensure the safety of aircraft and the efficient
use of airspace. This regulation is within the scope of that authority,
as it amends airspace for the Philadelphia, PA area to support IFR
operations in the area.

History

    The FAA published a notice of proposed rulemaking in the Federal
Register (86 FR 67672, November 29, 2021) for Docket No. FAA-2021-0922
to amend Class D airspace, Class E surface airspace, and Class E
airspace extending upward from 700 feet above the surface in the
Philadelphia, PA area, by updating the names and geographic coordinates
of several airports in the area.
    Interested parties were invited to participate in this rulemaking
effort by submitting written comments on the proposal to the FAA. No
comments were received.
    Class D and E airspace designations are published in Paragraphs
5000, 6002, and 6005, respectively, of FAA Order JO 7400.11F, dated
August 10, 2021, and effective September 15, 2021, which is
incorporated by reference in 14 CFR 71.1. The Class E airspace
designations listed in this document will be published subsequently in
FAA Order JO 7400.11.

Availability and Summary of Documents for Incorporation by Reference

    This document amends FAA Order JO 7400.11F, Airspace Designations
and Reporting Points, dated August 10, 2021, and effective September
15, 2021. FAA Order JO 7400.11F is publicly available as listed in the
ADDRESSES section of this document. FAA Order JO 7400.11F lists Class
A, B, C, D, and E airspace areas, air traffic routes, and reporting
points.

The Rule

    The FAA is amending 14 CFR part 71 by amending Class D airspace,
Class E surface airspace, and Class E airspace extending upward from
700 feet above the surface at the following airports:
    Philadelphia International Airport, by updating the geographic
coordinates to coincide with the FAA's database;
    New Castle Airport (formerly New Castle County Airport), by
updating the airport's name;
    Summit Airport (formerly Summit Airpark), by updating the airport's
name and geographic coordinates, and replacing the outdated term
Airport/Facility Directory with the term Chart Supplement in the
airport description.
    Also, the Class E surface airspace for Millville Municipal Airport
is amended by updating the airport's geographic coordinates.
    Subsequent to publication of the NPRM, the FAA discovered
unnecessary verbiage in the Philadelphia, PA, E5 description. This
action removes ``excluding the airspace that coincides with the Elkton,
MD; Wrightstown, NJ; Pittstown, NJ; Reading, PA; and Allentown, PA
Class E airspace areas'' from the description.
    FAA Order JO 7400.11, Airspace Designations and Reporting Points,
is published yearly and effective on September 15.

Regulatory Notices and Analyses

    The FAA has determined that this regulation only involves an
established body of technical regulations for which frequent and
routine amendments are necessary to keep them operationally current.
It, therefore: (1) Is not a ``significant regulatory action'' under
Executive Order 12866; (2) is not a ``significant rule'' under DOT
Regulatory Policies and Procedures (44 FR 11034; February 26, 1979);
and (3) does not warrant preparation of a regulatory evaluation as the
anticipated impact is minimal. Since this is a routine matter that only
affects air traffic procedures and air navigation, it is certified that
this rule, when promulgated, does not have a significant economic
impact on a substantial number of small entities under the criteria of
the Regulatory Flexibility Act.

Environmental Review

    The FAA has determined that this action qualifies for categorical
exclusion under the National Environmental Policy Act in accordance
with FAA Order 1050.1F, ``Environmental Impacts: Policies and
Procedures,'' paragraph 5-6.5a. This airspace action is not expected to
cause any potentially significant environmental impacts, and no
extraordinary circumstances exist that warrant preparation of an
environmental assessment.

Lists of Subjects in 14 CFR Part 71

    Airspace, Incorporation by reference, Navigation (air).

Adoption of the Amendment

    In consideration of the foregoing, the Federal Aviation
Administration amends 14 CFR part 71 as follows:

PART 71--DESIGNATION OF CLASS A, B, C, D, AND E AIRSPACE AREAS; AIR
TRAFFIC SERVICE ROUTES; AND REPORTING POINTS

0
1. The authority citation for part 71 continues to read as follows:

    Authority:  49 U.S.C. 106(f), 106(g); 40103, 40113, 40120; E.O.
10854, 24 FR 9565, 3 CFR, 1959-1963 Comp., p. 389.

Sec.  71.1  [Amended]

0
2. The incorporation by reference in 14 CFR 71.1 of FAA Order JO
7400.11F, Airspace Designations and Reporting Points, dated August 10,
2021, and effective September 15, 2021, is amended as follows:

Paragraph 5000 Class D Airspace.

* * * * *

AEA DE D Wilmington, DE [Amended]

New Castle Airport, DE

    (Lat. 39[deg]40'43'' N, long. 75[deg]36'24'' W)

    That airspace extending upward from the surface to and including
2,600 feet MSL within a 4.2-mile radius of the New Castle Airport.
This Class D airspace area is effective during the specific dates
and times established in advance by a Notice to Airmen. The
effective date and time will thereafter be continuously published in
the Chart Supplement.

Paragraph 6002 Class E Surface Airspace.

* * * * *

AEA DE E2 Wilmington, DE [Amended]

New Castle Airport, DE
    (Lat. 39[deg]40'43'' N, long. 75[deg]36'24'' W)

    Within a 4.2-mile radius of the New Castle Airport. This Class E
airspace area is effective during the specific dates and times
established in advance by a Notice to Airmen. The effective date and
time will thereafter be continuously published in the Chart
Supplement.

AEA NJ E2 Millville, NJ [Amended]

Millville Municipal Airport, NJ
    (Lat. 39[deg]22'04'' N, long. 75[deg]04'20'' W)

    That airspace extending upward from the surface within a 4-mile
radius of the Millville Municipal Airport.

Paragraph 6005 Class E Airspace Areas Extending Upward From 700
Feet or More Above the Surface of the Earth.

* * * * *

AEA PA E5 Philadelphia, PA [Amended]

Philadelphia International Airport, PA
    (Lat. 39[deg]52'20'' N, long. 75[deg]14'26'' W)
Chester County G.O. Carlson Airport, PA
    (Lat. 39[deg]58'44'' N, long. 75[deg]51'56'' W)
New Castle Airport, DE
    (Lat. 39[deg]40'43'' N, long. 75[deg]36'24'' W)
Summit Airport, DE
    (Lat. 39[deg]31'16'' N, long. 75[deg]43'25'' W)
Millville Municipal Airport, NJ
    (Lat. 39[deg]22'04'' N, long. 75[deg]04'20'' W)

    That airspace extending upward from 700 feet above the surface
within a 31-mile radius of Philadelphia International Airport
extending clockwise from a 225[deg] bearing to a 307[deg] bearing
from the airport and within a 37-mile radius of Philadelphia
International Airport extending from a 307[deg] bearing to a
053[deg] bearing from the airport and within a 33-mile radius of
Philadelphia International Airport extending from a 053[deg] bearing
to a 173[deg] bearing from the airport and within a 16-mile radius
of Philadelphia International Airport extending from a 173[deg]
bearing from the airport to a 225[deg] bearing from the airport, and
within a 7-mile radius of Chester County G.O. Carlson Airport, and
within a 6.7-mile radius of New Castle Airport, and within an 8-mile
radius of Summit Airport and within a 6.5-mile radius of Millville
Municipal Airport.

    Issued in College Park, Georgia, on January 19, 2022.
Andreese C. Davis,
Manager, Airspace & Procedures Team South, Eastern Service Center, Air
Traffic Organization.
[FR Doc. 2022-01281 Filed 1-24-22; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register Volume 76, Number 243 (Monday, December 19, 2011)]
[Notices]
[Pages 78670-78671]
[FR Doc No: 2011-32368]

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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

[Docket No. FDA-2011-D-0817]

Draft Guidance for Industry and Food and Drug Administration
Staff; Evaluation of Sex Differences in Medical Device Clinical
Studies; Availability

AGENCY: Food and Drug Administration, HHS.

ACTION: Notice.

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SUMMARY: The Food and Drug Administration (FDA) is announcing the
availability of the draft guidance entitled ``Evaluation of Sex
Differences in Medical Device Clinical Studies.'' This document
provides guidance on the study and evaluation of sex differences in
medical device clinical trials, with a specific focus on addressing
potential differences in study design, conduct, outcomes, and
interpretation that should be considered to ensure sex-specific issues
are adequately addressed in clinical trials. This draft guidance is not
final nor is it in effect at this time.

DATES: Although you can comment on any guidance at any time (see 21 CFR
10.115(g)(5)), to ensure that the Agency considers your comment of this
draft guidance before it begins work on the final version of the
guidance, submit either electronic or written comments on the draft
guidance by March 19, 2012.

ADDRESSES: Submit written requests for single copies of the draft
guidance document entitled ``Evaluation of Sex Differences in Medical
Device Clinical Studies'' to the Division of Small Manufacturers,
International, and Consumer Assistance, Center for Devices and
Radiological Health, Food and Drug Administration, 10903 New Hampshire
Ave., Bldg. 66, Rm. 4613, Silver Spring, MD 20993-0002. Send one self-
addressed adhesive label to assist that office in processing your
request, or fax your request to<PHONE_NUMBER>. See the SUPPLEMENTARY
INFORMATION section for information on electronic access to the
guidance.
    Submit electronic comments on the draft guidance to http://www.regulations.gov. Submit written comments to the Division of Dockets
Management (HFA-305), Food and Drug Administration, 5630 Fishers Lane,
Rm. 1061, Rockville, MD 20852. Identify comments with the docket number
found in brackets in the heading of this document.

FOR FURTHER INFORMATION CONTACT: Kathryn O'Callaghan, Center for
Devices and Radiological Health, Food and Drug Administration, 10903
New Hampshire Ave., Bldg. 66, Rm. 1546, Silver Spring, MD 20993-0002,
(301) 796-6349.

SUPPLEMENTARY INFORMATION:

I. Background

    The purpose of this guidance is to outline the Center for Devices
and Radiological Health's (CDRH's) expectations regarding sex-specific
patient enrollment, data analysis, and reporting of study information.
The intent is to improve the quality and consistency of available data
regarding the performance of medical devices in women. This information
can be of benefit to patients and their medical providers, as well as
clinical researchers and others. The specific objectives of this
guidance are to: (1) Better communicate the balance of risks and
benefits of FDA-approved or cleared medical devices; (2) identify sex-
specific questions for further study; and (3) encourage the
consideration of sex and associated covariates (e.g., body size, plaque
morphology, etc.) during the trial design stage.

II. Significance of Guidance

    This draft guidance is being issued consistent with FDA's good
guidance practices regulation (21 CFR 10.115). The draft guidance, when
finalized, will represent the Agency's current thinking on ``Evaluation
of Sex Differences in Medical Device Clinical Studies.'' It does not
create or confer any rights for or on any person and does not operate
to bind FDA or the public. An alternative approach may be used if such
approach satisfies the requirements of the applicable statute and
regulations.

III. Electronic Access

    Persons interested in obtaining a copy of the draft guidance may do
so by using the Internet. A search capability for all CDRH guidance
documents is available at http://www.fda.gov/MedicalDevices/DeviceRegulationandGuidance/GuidanceDocuments/default.htm. Guidance
documents are also available at http://www.regulations.gov. To receive
``Evaluation of Sex Differences in Medical Device Clinical Studies,''
you may either send an email request to<EMAIL_ADDRESS>to receive
an electronic copy of the document or send a fax request to (301) 847-
8149 to receive a hard copy. Please use the document number 1727 to
identify the guidance you are requesting.

IV. Paperwork Reduction Act of 1995

    This draft guidance refers to currently approved collections of
information found in FDA regulations. These collections of information
are subject to review by the Office of Management and Budget (OMB)
under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520). The
collections of information in 21 CFR 812.25(c) have been approved under
OMB control number 0910-0078; the collections of information in 21 CFR
part 807 Subpart E have been approved under OMB control number 0910-
0120; the collections of information in 21 CFR part 814 Subparts B and
E have been approved under OMB control number 0910-0231; the
collections of information in 21 CFR part 814 Subpart H have been
approved under OMB control number 0910-0332; the collections of
information in 21 CFR part 822 have been approved under OMB control
number 0910-0449.

V. Comments

    Interested persons may submit to the Division of Dockets Management
(see ADDRESSES) either electronic or written comments regarding this
document. It is only necessary to send one set of comments. It is no
longer necessary to send two copies of mailed comments.

Identify comments with the docket number found in brackets in the
heading of this document. Received comments may be seen in the Division
of Dockets Management between 9 a.m. and 4 p.m., Monday through Friday.

    Dated: December 13, 2011.
Leslie Kux,
Acting Assistant Commissioner for Policy.
[FR Doc. 2011-32368 Filed 12-16-11; 8:45 am]
BILLING CODE 4160-01-P


[Federal Register Volume 82, Number 237 (Tuesday, December 12, 2017)]
[Notices]
[Pages 58384-58386]
[FR Doc No: 2017-26744]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. CP18-10-000]

Notice of Intent To Prepare an Environmental Assessment for the
Proposed TX-LA Markets Project and Request for Comments on
Environmental Issues; Enbridge--Texas Eastern Transmission, L.P.

    The staff of the Federal Energy Regulatory Commission (FERC or
Commission) will prepare an environmental assessment (EA) that will
discuss the environmental impacts of the TX-LA Markets Project
involving construction and operation of facilities by Enbridge--Texas
Eastern Transmission, L.P. (Texas Eastern) in Beauregard Parish,
Louisiana. The Commission will use this EA in its decision-making
process to determine whether the project is in the public convenience
and necessity.
    This notice announces the opening of the scoping process the
Commission will use to gather input from the public and interested
agencies on the project. You can make a difference by providing us with
your specific comments or concerns about the project. Your comments
should focus on the potential environmental effects, reasonable
alternatives, and measures to avoid or lessen environmental impacts.
Your input will help the Commission staff determine what issues they
need to evaluate in the EA. To ensure that your comments are timely and
properly recorded, please send your comments so that the Commission
receives them in Washington, DC on or before January 5, 2018.
    If you sent comments on this project to the Commission before the
opening of this docket on October 19, 2017, you will need to file those
comments in Docket No. CP18-10-000 to ensure they are considered as
part of this proceeding. This notice is being sent to the Commission's
current environmental mailing list for this project. State and local
government representatives should notify their constituents of this
proposed project and encourage them to comment on their areas of
concern.
    Texas Eastern provided landowners with a fact sheet prepared by the
FERC entitled ``An Interstate Natural Gas Facility On My Land? What Do
I Need To Know?'' This fact sheet addresses a number of typically asked
questions, including the use of eminent domain and how to participate
in the Commission's proceedings. It is also available for viewing on
the FERC website (www.ferc.gov).

Public Participation

    For your convenience, there are three methods you can use to submit
your comments to the Commission. The Commission encourages electronic
filing of comments and has expert staff available to assist you at
(202) 502-8258 or [email protected]. Please carefully follow
these instructions so that your comments are properly recorded.
    (1) You can file your comments electronically using the eComment
feature on the Commission's website (www.ferc.gov) under the link to
Documents and Filings. This is an easy method for submitting brief,
text-only comments on a project;
    (2) You can file your comments electronically by using the eFiling
feature on the Commission's website (www.ferc.gov) under the link to
Documents and Filings. With eFiling, you can provide comments in a
variety of formats by attaching them as a file with your submission.
New eFiling users must first create an account by clicking on
``eRegister.'' If you are filing a comment on a particular project,
please select ``Comment on a Filing'' as the filing type; or
    (3) You can file a paper copy of your comments by mailing them to
the following address. Be sure to reference the project docket number
(CP18-10-000) with your submission: Kimberly D. Bose, Secretary,
Federal Energy Regulatory Commission, 888 First Street NE, Room 1A,
Washington, DC 20426.

Summary of the Proposed Project

    Texas Eastern proposes to modify its existing Gillis Compressor
Station in Beauregard Parish, Louisiana. The TX-LA Markets Project
would provide about 157,500 dekatherms of natural gas per day to
Entergy Louisiana, LLC and Natgasoline LLC.
    The TX-LA Markets Project would consist of the following
modifications at the existing Gills Compressor Station:
     Installation of two gas cooling bays; and
     installation of two new impellers \1\ for existing
compressor units.
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    \1\ An impeller is a rotor used to increase gas pressure.
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    The general location of the project facilities is shown in appendix
1.\2\
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    \2\ The appendices referenced in this notice will not appear in
the Federal Register. Copies of appendices were sent to all those
receiving this notice in the mail and are available at www.ferc.gov
using the link called ``eLibrary'' or from the Commission's Public
Reference Room, 888 First Street NE, Washington, DC 20426, or call
(202) 502-8371. For instructions on connecting to eLibrary, refer to
the last page of this notice.

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Land Requirements for Construction

    Construction of the proposed facilities would disturb about 39
acres of land for the aboveground facilities. All areas affected are
owned by Texas Eastern. Texas Eastern would not require any additional
acres for permanent operation of the project's facilities.

The EA Process

    The National Environmental Policy Act (NEPA) requires the
Commission to take into account the environmental impacts that could
result from an action whenever it considers the issuance of a
Certificate of Public Convenience and Necessity. NEPA also requires us
\3\ to discover and address concerns the public may have about
proposals. This process is referred to as ``scoping.'' The main goal of
the scoping process is to focus the analysis in the EA on the important
environmental issues. By this notice, the Commission requests public
comments on the scope of the issues to address in the EA. We will
consider all filed comments during the preparation of the EA.
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    \3\ ``We,'' ``us,'' and ``our'' refer to the environmental staff
of the Commission's Office of Energy Projects.
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    In the EA we will discuss impacts that could occur as a result of
the construction and operation of the proposed project under these
general headings:
     Geology and soils;
     land use;
     water resources, fisheries, and wetlands;
     cultural resources;
     vegetation and wildlife;
     air quality and noise;
     endangered and threatened species;
     public safety; and
     cumulative impacts.
    We will also evaluate reasonable alternatives to the proposed
project or portions of the project, and make recommendations on how to
lessen or avoid impacts on the various resource areas.
    The EA will present our independent analysis of the issues. The EA
will be available in the public record through eLibrary. Depending on
the comments received during the scoping process, we may also publish
and distribute the EA to the public for an allotted comment period. We
will consider all comments on the EA before making our recommendations
to the Commission. To ensure we have the opportunity to consider and
address your comments, please carefully follow the instructions in the
Public Participation section, beginning on page 2.
    With this notice, we are asking agencies with jurisdiction by law
and/or special expertise with respect to the environmental issues of
this project to formally cooperate with us in the preparation of the
EA.\4\ Agencies that would like to request cooperating agency status
should follow the instructions for filing comments provided under the
Public Participation section of this notice.
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    \4\ The Council on Environmental Quality regulations addressing
cooperating agency responsibilities are at Title 40, Code of Federal
Regulations, Part 1501.6.
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Consultations Under Section 106 of the National Historic Preservation
Act

    In accordance with the Advisory Council on Historic Preservation's
implementing regulations for section 106 of the National Historic
Preservation Act, we are using this notice to initiate consultation
with the applicable State Historic Preservation Office (SHPO), and to
solicit their views and those of other government agencies, interested
Indian tribes, and the public on the project's potential effects on
historic properties.\5\ We will define the project-specific Area of
Potential Effects (APE) in consultation with the SHPO as the project
develops. On natural gas facility projects, the APE at a minimum
encompasses all areas subject to ground disturbance (examples include
construction right-of-way, contractor/pipe storage yards, compressor
stations, and access roads). Our EA for this project will document our
findings on the impacts on historic properties and summarize the status
of consultations under section 106.
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    \5\ The Advisory Council on Historic Preservation's regulations
are at Title 36, Code of Federal Regulations, Part 800. Those
regulations define historic properties as any prehistoric or
historic district, site, building, structure, or object included in
or eligible for inclusion in the National Register of Historic
Places.
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Environmental Mailing List

    The environmental mailing list includes federal, state, and local
government representatives and agencies; elected officials;
environmental and public interest groups; Native American Tribes; other
interested parties; and local libraries and newspapers. This list also
includes all affected landowners (as defined in the Commission's
regulations) who are potential right-of-way grantors, whose property
may be used temporarily for project purposes, or who own homes within
certain distances of aboveground facilities, and anyone who submits
comments on the project. We will update the environmental mailing list
as the analysis proceeds to ensure that we send the information related
to this environmental review to all individuals, organizations, and
government entities interested in and/or potentially affected by the
proposed project.
    If we publish and distribute the EA, copies of the EA will be sent
to the environmental mailing list for public review and comment. If you
would prefer to receive a paper copy of the document instead of the CD
version or would like to remove your name from the mailing list, please
return the attached Information Request (appendix 2).

Becoming an Intervenor

    In addition to involvement in the EA scoping process, you may want
to become an ``intervenor'' which is an official party to the
Commission's proceeding. Intervenors play a more formal role in the
process and are able to file briefs, appear at hearings, and be heard
by the courts if they choose to appeal the Commission's final ruling.
An intervenor formally participates in the proceeding by filing a
request to intervene. Instructions for becoming an intervenor are in
the ``Document-less Intervention Guide'' under the ``e-filing'' link on
the Commission's website. Motions to intervene are more fully described
at http://www.ferc.gov/resources/guides/how-to/intervene.asp.

Additional Information

    Additional information about the project is available from the
Commission's Office of External Affairs, at (866) 208-FERC, or on the
FERC website at www.ferc.gov using the ``eLibrary'' link. Click on the
eLibrary link, click on ``General Search'' and enter the docket number,
excluding the last three digits in the Docket Number field (i.e., CP18-
10). Be sure you have selected an appropriate date range. For
assistance, please contact FERC Online Support at
[email protected] or toll free at<PHONE_NUMBER>, or for TTY,
contact<PHONE_NUMBER>. The eLibrary link also provides access to the
texts of formal documents issued by the Commission, such as orders,
notices, and rulemakings.
    In addition, the Commission offers a free service called
eSubscription which allows you to keep track of all formal issuances
and submittals in specific dockets. This can reduce the amount of time
you spend researching proceedings by automatically providing you with
notification of these filings, document summaries, and direct links to
the documents. Go to www.ferc.gov/docs-filing/esubscription.asp.
    Finally, public sessions or site visits will be posted on the
Commission's

calendar located at www.ferc.gov/EventCalendar/EventsList.aspx along
with other related information.

    Dated: December 6, 2017.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2017-26744 Filed 12-11-17; 8:45 am]
 BILLING CODE 6717-01-P


[Federal Register Volume 84, Number 236 (Monday, December 9, 2019)]
[Notices]
[Pages 67327-67332]
[FR Doc No: 2019-26406]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-87651; File No. SR-CboeBZX-2019-099]

Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Allow
the Hartford Short Duration ETF To Hold Certain Fixed Income
Instruments in a Manner That Does Not Comply With Rule 14.11(i)

December 3, 2019.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that, on November 20, 2019, Cboe BZX Exchange, Inc. (``Exchange'')
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 Exchange filed the proposal as
a ``non-controversial'' proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-4(f)(6) thereunder.\4\ The
Commission is publishing this notice to solicit

comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    Cboe BZX Exchange, Inc. (the ``Exchange'' or ``BZX'') is filing
with the Securities and Exchange Commission (``Commission'') a proposed
rule change to allow the Hartford Short Duration ETF (the ``Fund''), a
series of Hartford Funds Exchange-Traded Trust (the ``Trust''), to hold
certain fixed income instruments in a manner that does not comply with
Rule 14.11(i) (``Managed Fund Shares'').
    The text of the proposed rule change is also available on the
Exchange's website (http://markets.cboe.com/us/equities/regulation/rule_filings/bzx/), at the Exchange's Office of the Secretary, and at
the Commission's Public Reference Room.

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

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

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

1. Purpose
    The Shares are currently listed on the Exchange pursuant to the
generic listing standards under Rule 14.11(i) governing Managed Fund
Shares and comply with the generic listing standards.\5\ The Exchange
proposes to continue listing and trading the Shares. The Shares would
continue to comply with all of the generic listing standards after
effectiveness of this proposal with the exception of the requirement of
Rule 14.11(i)(4)(C)(ii)(d), that requires that component securities
that in aggregate account for at least 90% of the fixed income weight
of the portfolio to satisfy at least one of five conditions.
Specifically, the Exchange submits this proposal in order to allow the
Fund to hold instruments in a manner that may not comply with Rule
14.11(i)(4)(C)(ii)(d),\6\ as further described below. The Exchange
notes that this proposed exception to Rule 14.11(i)(4)(C)(ii)(d) is
substantively identical to an exception included in two other rule
filings that have been approved by the Commission.\7\
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    \5\ The Commission originally approved BZX Rule 14.11(i) in
Securities Exchange Act Release No. 65225 (August 30, 2011), 76 FR
55148 (September 6, 2011) (SR-BATS-2011-018) and subsequently
approved generic listing standards for Managed Fund Shares under
Rule 14.11(i) in Securities Exchange Act Release No. 78396 (July 22,
2016), 81 FR 49698 (July 28, 2016) (SR-BATS-2015-100).
    \6\ Rule 14.11(i)(4)(C)(ii)(d) provides that ``component
securities that in aggregate account for at least 90% of the fixed
income weight of the portfolio must be either: (a) From issuers that
are required to file reports pursuant to Sections 13 and 15(d) of
the Act; (b) from issuers that have a worldwide market value of its
outstanding common equity held by non-affiliates of $700 million or
more; (c) from issuers that have outstanding securities that are
notes, bonds, debentures, or evidence of indebtedness having a total
remaining principal amount of at least $1 billion; (d) exempted
securities as defined in Section 3(a)(12) of the Act; or (e) from
issuers that are a government of a foreign country or a political
subdivision of a foreign country.'' The Exchange instead is
proposing that the fixed income portion of the portfolio excluding
Non-Agency ABS, as defined below, will satisfy this 90% requirement.
    \7\ See Securities Exchange Act Release Nos. 84047 (September 6,
2018), 83 FR 46200 (September 12, 2018) (SR-NASDAQ-2017-128) (the
``Nasdaq Approval Order''); and 85701 (April 22, 2019), 84 FR 17902
(April 26, 2019) (SR-CboeBZX-2019-016) (the ``Exchange Approval
Order'').
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    The Shares are offered by the Trust, which was established as a
Delaware statutory trust on September 20, 2010. The Trust is registered
with the Commission as an open-end investment company and has filed a
registration statement on behalf of the Fund on Form N-1A with the
Commission.\8\ Hartford Funds Management Company LLC acts as adviser to
the Fund (the ``Adviser'').
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    \8\ The Trust filed a post-effective amendment to the
Registration Statement on March 1, 2019 (the ``Registration
Statement''). See Registration Statement on Form N-1A for the Trust
(File Nos. 333-215165 and 811-23222). The descriptions of the Fund
and the Shares contained herein are based, in part, on information
included in the Registration Statement. The Commission has issued an
order granting certain exemptive relief to the Trust and affiliated
persons under the Investment Company Act of 1940 (the ``1940 Act'')
(15 U.S.C. 80a-1). See Investment Company Act Release No. 30695
(September 24, 2013) (File No. 812-14178).
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    Rule 14.11(i)(7) 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 and maintain 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.\9\ In addition, Rule
14.11(i)(7) further requires that personnel who make decisions on the
investment company's portfolio composition must be subject to
procedures designed to prevent the use and dissemination of material
nonpublic information regarding the applicable investment company
portfolio. Rule 14.11(i)(7) is similar to Rule 14.11(b)(5)(A)(i),
however, Rule 14.11(i)(7) 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. The Adviser is
not a registered broker-dealer, but is affiliated with a broker-dealer
and has implemented and will maintain ``fire walls'' with respect to
such broker-dealer regarding access to information concerning the
composition and/or changes to the Fund's portfolio. In addition,
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 that (a) the Adviser becomes registered as a broker-dealer or
newly affiliated with another broker-dealer, or (b) any new adviser or
sub-adviser is a registered broker-dealer or becomes affiliated with a
broker-dealer, it will implement and maintain a fire wall with respect
to its relevant personnel or such broker-dealer affiliate, as
applicable, regarding access to information concerning the composition
and/or changes to the 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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    \9\ An investment adviser to an open-end fund is required to be
registered under the Investment Advisers Act of 1940 (the ``Advisers
Act''). As a result, the Adviser and its related personnel are
subject to the provisions of Rule 204A-1 under the Advisers Act
relating to codes of ethics. This Rule requires investment advisers
to adopt a code of ethics that reflects the fiduciary nature of the
relationship to clients as well as compliance with 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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    The Exchange represents that the Shares of the Fund will continue
to comply with all other requirements applicable to Managed Fund
Shares, which include the dissemination of key information such as the
Disclosed Portfolio,\10\ Net Asset Value,\11\ and the Intraday
Indicative Value,\12\ suspension of trading or removal,\13\ trading
halts,\14\ surveillance,\15\ minimum price variation for quoting and
order entry,\16\ the information circular,\17\ and firewalls \18\ as
set forth in Exchange rules applicable to Managed Fund Shares and the
orders approving such rules. The Trust is also required to comply with
Rule 10A-3 under the Act for the continued listing of the Shares of the
Fund. The Fund intends to qualify each year as a regulated investment
company under Subchapter M of the Internal Revenue Code of 1986, as
amended.
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    \10\ See Rule 14.11(i)(4)(A)(ii) and 14.11(i)(4)(B)(ii).
    \11\ See Rule 14.11(i)(4)(A)(ii).
    \12\ See Rule 14.11(i)(4)(B)(i).
    \13\ See Rule 14.11(i)(4)(B)(iii).
    \14\ See Rule 14.11(i)(4)(B)(iv).
    \15\ See Rule 14.11(i)(2)(C).
    \16\ See Rule 14.11(i)(2)(B).
    \17\ See Rule 14.11(i)(6).
    \18\ See Rule 14.11(i)(7).
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Hartford Short Duration ETF
    The Fund seeks to provide current income and long-term total
return. In order to achieve its investment objective, under Normal
Market Conditions,\19\ the Fund will invest primarily in investment
grade and non-investment grade fixed income securities, as described in
Rule 14.11(i)(4)(C)(ii). Under Normal Market Conditions, the Fund will
invest the majority of its net assets in fixed income securities,
including bank loans or loan participations. Such holdings in fixed
income securities currently meet the requirements for fixed income
instruments in Rule 14.11(i)(4)(C)(ii) and will continue to meet all of
the requirements of Rule 14.11(i)(4)(C)(ii) except for Rule
14.11(i)(4)(C)(ii)(d), as discussed in more detail below.
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    \19\ As provided in Rule 14.11(i)(3)(E), the term ``Normal
Market Conditions'' includes, but is not limited to, the absence of
trading halts in the applicable financial markets generally;
operational issues causing dissemination of inaccurate market
information or system failures; or force majeure type events such as
natural or man-made disaster, act of God, armed conflict, act of
terrorism, riot or labor disruption, or any similar intervening
circumstance.
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    Among others, such fixed income securities that may be held by the
Fund include non-agency, non-GSE,\20\ and privately-issued mortgage-
related and other asset-backed securities (collectively, ``Non-Agency
ABS''), which it generally expects to include (but not be limited to)
the following sectors: Private mortgage backed securities, commercial
mortgage backed securities, asset-backed securities (including autos,
credit cards, equipment, consumer loans), and collateralized loan
obligations. In accordance with Rule 14.11(i)(4)(C)(ii)(e), the Fund's
holdings in Non-Agency ABS do not currently and will not in the future
account for more than 20% of the weight of the fixed income portion of
the portfolio, in the aggregate.
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    \20\ A ``GSE'' is a type of financial services corporation
created by the United States Congress. GSEs include Fannie Mae and
Freddie Mac, but not Sallie Mae, which is no longer a government
entity.
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    The Fund will also generally invest up to 20% of its assets in cash
and Cash Equivalents,\21\ listed derivatives,\22\ and OTC
derivatives,\23\ although such holdings may exceed 20%. The Fund's
holdings in cash and Cash Equivalents, listed derivatives, and OTC
derivatives will be in compliance with all generic listing standards,
including those in Rules 14.11(i)(4)(C)(iii), 14.11(i)(4)(C)(iv),
14.11(i)(4)(C)(v), and 14.11(i)(4)(C)(vi), respectively.
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    \21\ As defined in Exchange Rule 14.11(i)(4)(C)(iii)(b), Cash
Equivalents are short-term instruments with maturities of less than
three months, which includes only the following: (i) U.S. Government
securities, including bills, notes, and bonds differing as to
maturity and rates of interest, which are either issued or
guaranteed by the U.S. Treasury or by U.S. Government agencies or
instrumentalities; (ii) certificates of deposit issued against funds
deposited in a bank or savings and loan association; (iii) bankers
acceptances, which are short-term credit instruments used to finance
commercial transactions; (iv) repurchase agreements and reverse
repurchase agreements; (v) bank time deposits, which are monies kept
on deposit with banks or savings and loan associations for a stated
period of time at a fixed rate of interest; (vi) commercial paper,
which are short-term unsecured promissory notes; and (vii) money
market funds.
    \22\ For purposes of this filing, listed derivatives include
only the following instruments: Treasury futures, U.S. interest rate
futures, and Eurodollar futures.
    \23\ For purposes of this filing, OTC derivatives include only
the following instruments: Interest rate swaps, currency forwards,
and credit default swap indices.
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    The Fund's investments, including derivatives, will be consistent
with the 1940 Act and the Fund's investment objective and policies and
will not be used to enhance leverage (although certain derivatives and
other investments may result in leverage).\24\ That is, while the Fund
will be permitted to borrow as permitted under the 1940 Act, the Fund's
investments will not be used to seek performance that is the multiple
or inverse multiple (i.e., 2Xs and 3Xs) of the Fund's primary broad-
based securities benchmark index (as defined in Form N-1A). The Fund
will only use those derivatives described above. The Fund's use of
derivative instruments will be collateralized.
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    \24\ The Fund will include appropriate risk disclosure in its
offering documents, including leveraging risk. Leveraging risk is
the risk that certain transactions of a fund, including a fund's use
of derivatives, may give rise to leverage, causing a fund to be more
volatile than if it had not been leveraged. To mitigate leveraging
risk, the Fund will segregate or earmark liquid assets determined to
be liquid by the Adviser in accordance with procedures established
by the Trust's Board and in accordance with the 1940 Act (or, as
permitted by applicable regulations, enter into certain offsetting
positions) to cover its obligations under derivative instruments.
These procedures have been adopted consistent with Section 18 of the
1940 Act and related Commission guidance. 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).
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Discussion
    While the Fund currently meets all of the generic listing standards
under Rule 14.11(i), if the Fund had full flexibility to invest in a
manner consistent with its investment strategy, it might not meet the
requirements of Rule 14.11(i)(4)(C)(ii)(d) because certain Non-Agency
ABS by their nature cannot satisfy these requirements. As described
above, the Exchange is instead proposing that the fixed income portion
of the portfolio excluding Non-Agency ABS will satisfy this 90%
requirement. The Exchange believes that this alternative limitation is
appropriate because Rule 14.11(i)(4)(C)(ii)(d) is not designed for
structured finance vehicles such as Non-Agency ABS and the overall
weight of the Non-Agency ABS held by the Fund will be limited to 20% of
the fixed income portion of the Fund's portfolio as required under Rule
14.11(i)(4)(C)(ii)(e). The Exchange also notes that the Fund's
portfolio is consistent with the policy issues underlying the rule as a
result of the diversification provided by the investments and the
Adviser's selection process, which closely monitors investments to
ensure maintenance of credit and liquidity standards. As noted above,
the remainder of the fixed income securities held by the Fund will
satisfy the requirements of Rule 14.11(i)(4)(C)(ii)(d) and the
remainder of the Fund's portfolio, including fixed income securities,
will meet all other applicable generic listing standards under Rule
14.11(i)(4)(C). Further, allowing the Fund full flexibility to
implement its fixed income strategy and further diversify its holdings
to provide

exposure to a broader array of fixed income securities would allow the
Fund to better achieve its investment objective and, as such, benefit
both existing and future investors in the Fund.
    The Exchange represents that the Shares of the Fund will continue
to comply with all other requirements applicable to Managed Fund
Shares, which include the dissemination of key information such as the
Disclosed Portfolio,\25\ Net Asset Value,\26\ and the Intraday
Indicative Value,\27\ suspension of trading or removal,\28\ trading
halts,\29\ surveillance,\30\ minimum price variation for quoting and
order entry,\31\ the information circular,\32\ and firewalls \33\ as
set forth in Exchange rules applicable to Managed Fund Shares and the
orders approving such rules. The Exchange may obtain information
regarding trading in the Shares and the underlying futures contracts
via the Intermarket Surveillance Group (``ISG'') from other exchanges
who are a member of ISG or affiliated with a member of ISG or with
which the Exchange has entered into a comprehensive surveillance
sharing agreement.\34\ Additionally, the Exchange or FINRA, on behalf
of the Exchange, are able to access, as needed, trade information for
certain fixed income instruments reported to FINRA's Trade Reporting
and Compliance Engine (``TRACE''). All statements and representations
made in this filing regarding the description of the portfolio or
reference assets, limitations on portfolio holdings or reference
assets, dissemination and availability of reference asset and intraday
indicative values (as applicable), or the applicability of Exchange
listing rules specified in this filing shall constitute continued
listing requirements for the Shares. The Fund has represented to the
Exchange that it will advise the Exchange of any failure by the Fund or
Shares to comply with the continued listing requirements, and, pursuant
to its obligations under Section 19(g)(1) of the Act, the Exchange will
surveil for compliance with the continued listing requirements. FINRA
conducts certain cross-market surveillances on behalf of the Exchange
pursuant to a regulatory services agreement. The Exchange is
responsible for FINRA's performance under this regulatory services
agreement. If the Fund is not in compliance with the applicable listing
requirements, the Exchange will commence delisting procedures with
respect to such Fund under Exchange Rule 14.12.
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    \25\ See Rule 14.11(i)(4)(A)(ii) and 14.11(i)(4)(B)(ii).
    \26\ See Rule 14.11(i)(4)(A)(ii).
    \27\ See Rule 14.11(i)(4)(B)(i).
    \28\ See Rule 14.11(i)(4)(B)(iii).
    \29\ See Rule 14.11(i)(4)(B)(iv).
    \30\ See Rule 14.11(i)(2)(C).
    \31\ See Rule 14.11(i)(2)(B).
    \32\ See Rule 14.11(i)(6).
    \33\ See Rule 14.11(i)(7).
    \34\ For a list of the current members and affiliate members of
ISG, see www.isgportal.com. The Exchange notes that not all
components of the Disclosed Portfolio for the Fund may trade on
markets that are members of ISG or with which the Exchange has in
place a comprehensive surveillance sharing agreement.
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Availability of Information
    As noted above, the Fund will comply with the requirements under
Rule 14.11(i) related to Disclosed Portfolio, NAV, and the intraday
indicative value. Intraday price quotations on fixed income securities
and OTC derivative instruments are available from major broker-dealer
firms and from third-parties, which may provide prices free with a time
delay or in real-time for a paid fee. Additionally, the intraday,
closing and settlement prices of futures contracts held by the Fund
will be readily available from the exchanges on which such products are
listed, automated quotation systems, published or other public sources,
or online information services such as Bloomberg or Reuters. Price
information for Cash Equivalents will be available from major market
data vendors. The Disclosed Portfolio will be available on the Fund's
website (www.hartfordfunds.com) free of charge. The Fund's website will
include the prospectus for the Fund and additional information related
to NAV and other applicable quantitative information. Information
regarding market price and trading volume of the Shares will be
continuously available throughout the day on brokers' computer screens
and other electronic services. Information regarding the previous day's
closing price and trading volume for the Shares will be published daily
in the financial section of newspapers. Trading in the Shares may be
halted for market conditions or for reasons that, in the view of the
Exchange, make trading inadvisable. The Exchange deems the Shares to be
equity securities, thus rendering trading in the Shares subject to the
Exchange's existing rules governing the trading of equity securities.
The Exchange has appropriate rules to facilitate trading in the Shares
during all trading sessions. The Exchange prohibits the distribution of
material non-public information by its employees. Quotation and last
sale information for the Shares will be available via the CTA high-
speed line.
2. Statutory Basis
    The Exchange believes that the proposal is consistent with Section
6(b) of the Act \35\ in general and Section 6(b)(5) of the Act \36\ in
particular in that it is designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade, to foster cooperation and coordination with
persons engaged in facilitating transactions in securities, to remove
impediments to and perfect the mechanism of a free and open market and
a national market system and, in general, to protect investors and the
public interest in that the Shares will meet each of the continued
listing criteria in BZX Rule 14.11(i) with the exception of Rule
14.11(i)(4)(C)(ii)(d) as specifically discussed herein.
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    \35\ 15 U.S.C. 78f(b).
    \36\ 15 U.S.C. 78f(b)(5).
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    While the Fund currently meets all of the generic listing standards
under Rule 14.11(i), if the Fund were permitted full flexibility to
invest consistent with its investment strategy, it might not meet the
requirements of Rule 14.11(i)(4)(C)(ii)(d) because certain Non-Agency
ABS by their nature cannot satisfy these requirements. The Exchange
believes that excluding Non-Agency ABS from this calculation is
consistent with the Act because the Fund's portfolio will minimize the
risk associated with any particular holding of the Fund as a result of
the diversification provided by the investments and the Adviser's
selection process, which closely monitors investments to ensure
maintenance of credit and liquidity standards. Further, the Exchange
believes that this alternative limitation is appropriate because Rule
14.11(i)(4)(C)(ii)(d) is not designed for structured finance vehicles
such as Non-Agency ABS and the overall weight of the Non-Agency ABS
held by the Fund will be limited to 20% of the fixed income portion of
the Fund's portfolio as required under Rule 14.11(i)(4)(C)(ii)(e). The
Exchange also notes that the Fund's portfolio will meet all of the
other generic listing standards applicable under Rule 14.11(i), which
will further act to mitigate the manipulation concerns which the rules
are intended to address. Further, the other fixed income instruments,
excluding Non-Agency ABS, held by the Fund will satisfy the 90%
requirement under Rule 14.11(i)(4)(C)(ii)(d). Consistent with Rule
14.11(i)(4)(C)(ii)(e), the Non-Agency ABS held by the Fund will not
account, in the aggregate, for more than 20% of

the weight of the fixed income portion of the portfolio.
    As noted above, the remainder of the Fund's portfolio, including
fixed income securities, will meet all other applicable generic listing
standards under Rule 14.11(i)(4)(C). Allowing the Fund full flexibility
to implement its fixed income strategy and further diversify its
holdings to provide exposure to a broader array of fixed income
securities would allow the Fund to better achieve its investment
objective and, as such, benefit both existing and future investors in
the Fund.
    The Exchange believes that its surveillance procedures are adequate
to properly monitor the trading of the Shares on the Exchange during
all trading sessions and to deter and detect violations of Exchange
rules and the applicable federal securities laws. Rule 14.11(i)(7)
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. The Adviser is not a registered broker-dealer, but is
affiliated with a broker-dealer and has implemented and will maintain
``fire walls'' with respect to such broker-dealer regarding access to
information concerning the composition and/or changes to the Fund's
portfolio. In addition, 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. Additionally, the Exchange or FINRA, on behalf of the
Exchange, are able to access, as needed, trade information for certain
fixed income instruments reported to TRACE. The Exchange may obtain
information regarding trading in the Shares via the ISG from other
exchanges who are a member of ISG or affiliated with a member of ISG or
with which the Exchange has entered into a comprehensive surveillance
sharing agreement. The Exchange further notes that the Fund will meet
and be subject to all other requirements of the generic listing rules
and other applicable continued listing requirements for Managed Fund
Shares under Rule 14.11(i), including those requirements regarding the
dissemination of key information such as the Disclosed Portfolio, Net
Asset Value, and the Intraday Indicative Value, suspension of trading
or removal, trading halts, surveillance, minimum price variation for
quoting and order entry, the information circular, and firewalls as set
forth in Exchange rules applicable to Managed Fund Shares.
    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. Moreover, the Intraday
Indicative Value will be disseminated by one or more major market data
vendors at least every 15 seconds during Regular Trading Hours. On each
business day, before commencement of trading in Shares during Regular
Trading Hours, the Fund will disclose on its website the Disclosed
Portfolio that will form the basis for the Fund's calculation of NAV at
the end of the business day. The Fund's website will include additional
quantitative information updated on a daily basis, including, for the
Fund: (1) The prior business day's NAV and the market closing price or
mid-point of the Bid/Ask Price,\37\ and a calculation of the premium or
discount of the market closing price or Bid/Ask Price against the NAV;
and (2) data in chart format displaying the frequency distribution of
discounts and premiums of the daily market closing price or Bid/Ask
Price against the NAV, within appropriate ranges, for each of the four
previous calendar quarters. Additionally, information regarding market
price and trading of the Shares will be continually available on a
real-time basis throughout the day on brokers' computer screens and
other electronic services, and quotation and last sale information for
the Shares will be available on the facilities of the Consolidated Tape
Association. The website for the Fund will include a form of the
prospectus for the Fund and additional data relating to NAV and other
applicable quantitative information. Trading in Shares of a Fund will
be halted under the conditions specified in Rule 11.18. Trading may
also be halted because of market conditions or for reasons that, in the
view of the Exchange, make trading in the Shares inadvisable. Finally,
trading in the Shares will be subject to Rule 14.11(i)(4)(B)(iv), which
sets forth circumstances under which Shares may be halted. In addition,
as noted above, investors will have ready access to information
regarding the Fund's holdings, the Intraday Indicative Value, the
Disclosed Portfolio, and quotation and last sale information for the
Shares.
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    \37\ The Bid/Ask Price of a Fund will be determined using the
highest bid and the lowest offer on the Exchange as of the time of
calculation of the Fund's NAV. The records relating to Bid/Ask
Prices will be retained by the Fund or its service providers.
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    Intraday price quotations on fixed income securities and OTC
derivative instruments are available from major broker-dealer firms and
from third-parties, which may provide prices free with a time delay or
in real-time for a paid fee. Additionally, the intraday, closing and
settlement prices of futures contracts held by the Fund will be readily
available from the exchanges on which such products are listed,
automated quotation systems, published or other public sources, or
online information services such as Bloomberg or Reuters. Price
information for Cash Equivalents will be available from major market
data vendors. The Exchange prohibits the distribution of material non-
public information by its employees.
    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 continued listing and
trading of an 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, the Exchange, or FINRA, on
behalf of the Exchange, is able to access, as needed, trade information
for certain fixed income instruments reported to TRACE. FINRA can also
access data obtained from the Municipal Securities Rulemaking Board's
Electronic Municipal Market Access system relating to municipal bond
trading activity for surveillance purposes in connection with trading
in the Shares. As noted above, investors will also have ready access to
information regarding the Fund's holdings, the Intraday Indicative
Value, the Disclosed Portfolio, and quotation and last sale information
for the Shares.
    For the above reasons, the Exchange believes that the proposed rule
change is consistent with the requirements of Section 6(b)(5) of the
Act.

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

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

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

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

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

    Because the proposed rule change does not: (i) Significantly affect
the protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative for 30
days from the date on which it was filed, or such shorter time as the
Commission may designate, it has become effective pursuant to Section
19(b)(3)(A) of the Act \38\ and Rule 19b-4(f)(6) thereunder.\39\
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    \38\ 15 U.S.C. 78s(b)(3)(A).
    \39\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of the proposed rule change, at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \40\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \41\ permits the
Commission to designate a shorter time if such action is consistent
with the protection of investors and the public interest. The Exchange
has requested that the Commission waive the 30-day operative delay so
that the proposed rule change may become operative upon filing.
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    \40\ 17 CFR 240.19b-4(f)(6).
    \41\ 17 CFR 240.19b-4(f)(6)(iii).
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    The Exchange represents that the Shares are currently listed on the
Exchange pursuant to the generic listing standards under BZX Rule
14.11(i) governing Managed Fund Shares and comply with the generic
listing standards. The Exchange further represents that the Shares
would continue to comply with all of the generic listing standards
after effectiveness of this proposal, with the exception of BZX Rule
14.11(i)(4)(C)(ii)(d), which requires that component securities that in
aggregate account for at least 90% of the fixed income weight of the
portfolio to satisfy at least one of five conditions.\42\ The
Commission notes that, in the context of holdings in Non-Agency ABS,
the proposed exception to BZX Rule 14.11(i)(4)(C)(ii)(d) is consistent
with an exception applied in other proposed rule changes that have been
approved by the Commission.\43\ Accordingly, the Commission believes
that the proposal raises no new or novel regulatory issues and that
waiver of the 30-day operative delay is consistent with the protection
of investors and the public interest. The Commission therefore waives
the 30-day operative delay and designates the proposed rule change to
be operative upon filing.\44\
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    \42\ The Exchange also represents that the Shares of the Fund
will continue to comply with all other requirements applicable to
Managed Fund Shares, which include the dissemination of key
information such as the Disclosed Portfolio, Net Asset Value, and
the Intraday Indicative Value, suspension of trading or removal,
trading halts, surveillance, minimum price variation for quoting and
order entry, the information circular, and firewalls as set forth in
Exchange rules applicable to Managed Fund Shares and the orders
approving such rules. See supra notes 10-18 and accompanying text.
    \43\ See supra note 7.
    \44\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission will institute proceedings to
determine whether the proposed rule change should be approved or
disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-CboeBZX-2019-099 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-CboeBZX-2019-099. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549 on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-CboeBZX-2019-099 and should be submitted
on or before December 30, 2019.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\45\
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    \45\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-26406 Filed 12-6-19; 8:45 am]
 BILLING CODE 8011-01-P