3 Compensation and Working Conditions Summer 1998 Fishing for a Living is Dangerous Work Fishing has consistently ranked as the most deadly occupation since 1992, when BLS started publishing fatality rates by occupation. Workers in this occupation face unique life threatening hazards   vessel casualties, falling overboard, and diving incidents.

BY DINO DRUDI Dino Drudi is an economist in the Office of Safety, Health and Working Conditions, Bureau of Labor Statistics. Telephone: ( 202) 606 6175 E mail: Drudi_ D@ bls. gov E ach year during the 19th century Gloucester, Massachusetts typically lost to the sea about 200 men employed in fishing   4 percent of the town's population. Since 1650, the sea has claimed an estimated 10,000 Gloucester residents. Sometimes a storm would hit the Grand Banks and half a dozen fishing ships would go down   100 men lost overnight. On more than one occasion Newfoundlanders awoke to find their beaches strewn with the stormtossed corpses of those who toiled on New England fishing boats. 1 While fishing, like almost all other occupations, has become less dangerous in recent years, the Bureau of Labor Statistics' Census of Fatal Occupational Injuries ( CFOI), since its inception in 1992, has reported fishers as the single most deadly occupation 2 Persons engaged in this work typically face a risk of suffering a fatal job injury 20 to 30 times greater than the risk for all occupations. For the years 1992 through 1996, the most recent year for which data are available there were between 50 and 100 fishing fatalities annually. This translates into 140 fatalities per 100,000 workers engaged in the occupation for the 5 year period. ( See table 1.) By contrast, the fatality rate for all occupations during this same period was 5 per 100,000. Although in the 19th century more than 1 out of 25 Gloucester fishermen were killed on the job each year, for the period 1992 through 1996, the number of commercial fishing workers killed on the job annually averaged 1 out of 716. This translates into 61 fatal injuries per 1,000 workers over a 45 year fishing work lifetime. 3 This article, discusses fatal occupational injuries to fishers for the period 1992 96 and does not include any analysis of their nonfatal occupational injuries and illnesses.

Vessel casualties Commercial fishing vessels often travel a long way from their home ports in search of ever dwindling fish stocks, and fish great distances from shore. Perils to fishing vessels include storms, which can produce " rogue waves"   also known as " freak seas" or " non negotiable waves"   over 100 feet ( 30 meters) high, and fog which hinders safe navigation. Rogue waves often are several ordinary waves that get " in step" to form veritable piles of water or they are leftover waves from earlier storms that circumnavigate the globe and strike in otherwise relatively calm seas. They 4 Compensation and Working Conditions Summer 1998 have incredibly destructive power. To illustrate, in 1973, a 12,000 ton ship broke in half on her maiden voyage after being struck by a rogue wave. The following year, a 132,000 ton tanker fell into a huge trough caused by a rogue wave. A crew member remarked " There was no sea in front of the ship, only a hole ." The ship then took an equally huge wave over her bow which crumpled a 1 inch ( 2 ½  centimeter) thick steel plate, twisted railroad gauge I beams into knots, and tore off the entire bow bulb! Rogue waves have the power to devastate a typical fishing boat. 4 Rogue waves are not the only ocean peril that can sink or capsize ships. Ships might, for example, strike a submerged rock or collide with another vessel in the fog. Vessel casualties were the leading cause of fishing fatalities and often involved multiple deaths. From 1992 through 1996, half of fishing fatalities   197 cases   involved vessel casualties, such as sinkings, capsizings, or collisions. ( See table 2.) Often the bodies of the deceased are never found, particularly if they go down with the ship, wash ashore in some remote place, or enter the food chain of higher level marine life.

" Person overboard!" It isn't only rogue waves that are capable of washing fishers overboard or tilting the deck enough to cause them to slip into the water. Lesser waves also wash fishers overboard. But wave action is not the only way a fisher can go overboard, as the following accounts demonstrate:

A fisherman on board a 113 foot ( 34 meter) crabbing vessel was thrown overboard when a crab pot line he was straddling suddenly tightened. 5 Baiting has all the glamour of a factory shift and considerably more of the danger. The line is spooled on a big drum. It crosses diagonally over the deck, passes through an overhead block, and then bends straight back toward the stern. A steel ring guides it over the rail and into the water. That's where the baiters stand. There's a bait table on top of the stern rail   basically a wooden well with squid and mackerel [ baitfish] in it   and a leader cart on either side. The leader carts are small drums spooled with hundreds of lengths of seven fathom line called gangions. Each gangion has a # 10 hook at one end and a stainless steel snap on the other . The baiter reaches behind him and takes a gangion from his back up man, who's peeling them off the leader cart one at a time. The baiter impales a squid or mackerel onto the hook, snaps the gangion onto the mainline, and throws the whole thing over the side. The hook is easily big enough to pass through a man's hand, and if it catches some part of the baiter's body or clothing he goes over the side with it . The crew's looking the other way, the hook's got you, and suddenly you're down at the depth where swordfish feed . 6 Going overboard as a consequence of slipping on a wet or icy deck, being pulled overboard when lines wrap around one's legs, being washed overboard by a wave, pulled overboard by a hook, or flung overboard by a line suddenly tightening are examples of incidents which are classified as " falls from ship or boat." These types of falls accounted for 70 fatalities   almost one fifth of the total during the 1992 96 period. ( See table 2.) Fishers who go overboard into very cold water are at risk of hypothermia   the cooling of the core body temperature This condition causes shivering, loss of muscle coordination, unconsciousness and even death. 7 Unless wearing a survival suit or a personal flotation device ( life jacket), a fisher could not withstand more than 6 or 7 minutes immersed in very cold water before succumbing.

Diving   an emerging hazard Diving fatalities are beginning to be recognized as an emerging hazard in the fishing industry. 8 Sometimes crewmembers with little formal diving training or experience are called on to dive below water to untangle nets or lines that have snagged on the ocean floor or in the boat's propellers. Even experienced, certified scuba9 divers hired to dive for sea cucumbers and other aquatic life often face numerous hazards such as adverse sea and weather conditions, 10 murky water, unexpected shifts in underwater cur Table 1. Fatal occupational injuries for fishing occupations, 1992 961 1992 1993 1994 1995 1996 Total 1992 96 Number Rate Number Rate Number Rate Number Rate Number Rate Number Rate Fishing occupations ...................... 92 156 91 154 67 131 58 103 72 153 380 140 Captains and other officers ...... 20   12   10   7   6   55   Fishers ..................................... 72 141 79 154 57 136 51 113 66 178 325 144 1 Rates represent the number of fatal occupational injuries per 100,000 employed workers and were calculated as: ( N/ W) x 100,000, where N = the number of work injury fatalities to workers 16 years of age and older. W = the number of employed workers 16 years of age and older. 100,000 = per 100,000 workers. Employment figures are annual average estimates of employed civilians 16 years of age and older from the Current Population Survey, 1992 96. 2 Based on the 1990 Occupational Classification System developed by the Bureau of the Census. Fishing occupations is an aggregate of fishers, and captains and other fishing vessel officers. 3 Dashes indicate rates for captains and other fishing vessel officers do not meet publication standards. 3 Occupation2 5 Compensation and Working Conditions Summer 1998 rents, entanglement of air lines, scuba equipment malfunction, decompression problems, and encounters with dangerous marine life. 11 The 60 drownings that occurred during 1992 96 accounted for one sixth of fishing fatalities. ( See table 2.) Most of these drownings involved diving activities. A variety of other hazards that tend to be more typical of workplaces generally   such as electrocutions, being caught in winches and other machinery homicides, and aircraft crashes   accounted for the remaining fishing fatalities

Economic and demographic characteristics Commercial fishing vessels travel on long voyages far from shore in search of ever dwindling fish stocks. These large boats, often capable of hauling a catch weighing many tons, and sometimes having on board processing facilities, require a crew with a wide range of specialized skills. As a prerequisite, fishers must be in good health, and possess physical strength and coordination. They must also possess the mechanical aptitude to operate maintain, and repair on board machinery and fishing gear, and the perseverance to perform strenuous outdoor work and endure long hours at sea often under difficult conditions 12 Often the proceeds from the fish catch are apportioned among the crew based on the market price the catch brings when landed in port   an elaborate kind of piecework pay scheme. The pay can be quite rewarding   $ 4,000 or more per month. Many of the individuals employed in fishing, such as college students taking fishing jobs during the summer to meet high tuition bills, 13 are highly motivated to face these risks and withstand these rigors because the pay is so attractive Others are highly motivated because they find themselves unemployable in other lines of work and they end up in fishing as a last resort, while still others fall in love with fishing as a line of work and a way of life. 14 These factors may work in tandem to produce a workforce more motivated and able to push limits that would dissuade or disable workers in other industries. Fishing in cold waters is inherently riskier because of hypothermia. Alaska, with one of the Nation's smallest workforces, accounted for the largest number of fishing fatalities during the 1992 96 period. ( See table 3.) Moreover, some specific Alaska fishing activities are particularly hazardous For example, harvesting most commercial crab species in Alaska takes place during the winter when air and water temperatures are colder; high winds, snow, sleet, and ice are more prevalent; daylight hours shorter; and high seas are more common. 15 Other cold water States   such as Massachusetts, Oregon, Washington, and Maine   also had disproportionately high numbers of fishing fatalities Industry analysis suggests that persons engaged in commercial shellfishing are more at risk of dying on the job than those engaged in commercial finfishing. 16 During 1992 96, shellfishing with 160 fatalities, accounted for one third more deaths than finfishing with 119 fatalities, despite the fact that the shellfishing industry employed only three fifths as many workers as the finfishing industry17 and the weight for the commercial shellfish catch was less than one sixth that for finfish. The commercial dollar value of the shellfish catch, however is nearly equal to that of the finfish catch, in part, as a consequence of the greater risk involved in shellfishing. 18 In addition, there were 16 commercial fishing fatalities in the miscellaneous marine products industry ( sea cucumbers, sponges, seaweed, Table 2. Fatal events or exposures for fishing occupations, 1992 96 Fatal event or exposure Number Percent Vessel casualties .................................................. 197 52 Fall from ship or boat ............................................ 70 18 Drowning, submersion .......................................... 60 16 Other events or exposures ................................... 53 14 1Sinkings and capsizings accounted for 154 of the 197 vessel casualties. The remaining 43 vessel casualties resulted from collisions, vessel explosions and fires, and all other water vehicle incidents except falls from ship or boat.

Table 3. Fishing occupation1 fatalities by State, 1992 96 State Number Percent Total ................................................................. 380 100 Alaska .................................................................. 112 29 Massachusetts ..................................................... 32 8 Texas .................................................................... 31 8 Florida .................................................................. 26 7 Oregon ................................................................. 21 6 California .............................................................. 21 6 Washington .......................................................... 20 5 Louisiana .............................................................. 18 5 North Carolina ...................................................... 18 5 Maine ................................................................... 17 4 Hawaii .................................................................. 14 4 Other .................................................................... 50 13 1 Includes fishers, captains, and other fishing vessel officers. 2 These 50 fishing fatalities are distributed over the remaining 39 States and the District of Columbia, and also include 7 fatalities occurring outside any State's territorial waters. None of these States accounted for more than 5 fishing fatalities. 1 2 6 Compensation and Working Conditions Summer 1998 sea urchins, etc.), and 55 in general commercial fishing. Miscellaneous amusement and recreation services, which includes fishing guides, accounted for 10 fatalities. The remainder were scattered over various industries While Current Population Survey data show self employed individuals comprise at least three fifths of employment in fishing occupations, they accounted for just over a third of the fatalities during this period. This may be due to a variety of factors, such as self employed fishers being limited by economies of scale to more familiar local waters. Moreover, because some types of fish can only be taken at certain times of the year, many self employed fishers engage in fishing on a part time basis. During 1992 96, fishing fatalities tracked age group employment fairly closely, except that the 25 to 34 yearold age group experienced a disproportionately high share of the fatalities while the 55 to 64 year old age group experienced a slightly lower share. Non Hispanic persons from racial categories other than white and black   such as Asians, Pacific Islanders American Indians, Eskimos, and Aleuts   comprise 7 percent of fishing employment, but at least 16 percent of fishing fatalities. 19 Conclusion This article builds on the research undertaken by the National Institute for Occupational Safety and Health ( NIOSH), which has published several special studies, most of which have focused on the fishing industry in Alaska. 20 Census of Fatal Occupational Injuries ( CFOI) data supplement the NIOSH studies and provide information on hazards facing those engaged in commercial fishing occupations throughout the United States. Because fish are believed to have various dietary benefits, per capita fish consumption in the United States has increased by 20 percent over the past two decades. Overall per capita fish use   which includes both food consumption and industrial fish products such as fishmeal and crushed oyster shells   has increased 30 percent. 21 Although the United States is still a net importer of fish, exports of edible fish products have tripled in weight and doubled in dollar value during the past decade, while imports have remained stable. During this time, exports of industrial fish products increased nearly 60 fold to over $ 5 billion, while the dollar value of industrial fish product imports barely doubled. 22 Fishing employment has declined from an estimated 59,000 in 1992 to 47,000 in 1996.23 This decline, which has taken place in the face of an increased demand for fish, is a consequence mainly of the declining supply of fish due to overfishing. But, as the demand for fish grows, and meeting that demand requires ever longer voyages and greater efforts, these factors working in tandem have the potential to increase the hazards of fishing occupations and negate any fatality decreases that stricter safety regulation may have afforded. Indeed, in 1996, when the CFOI all employment fatality rate reached its lowest level since the program began, the rate for fishers jumped to 178 fatalities per 100,000 employment   the highest it has been since the CFOI program began collecting data in 1992. In 1996, the rate for fishing occupations, which includes fishers, and captains and other fishing vessel officers, reached its highest level in 3 years.

Technical note The lifetime risk for a specific industry or occupation was calculated using an equation proposed by the Occupational Safety and Health Administration in 1995: WLTR = [ 1  ( 1   R) y] x 1,000 where: WLTR = working lifetime risk; R = probability of a worker having a work related fatal injury in a given year; 1   R = probability of a worker not having a workrelated fatal injury in a given year; y = years of exposure to work related injury ( 1   R) y = probability of surviving y years without a work related fatal injury; 1   ( 1   R) y = probability of having a work related fatal injury over y years of employment. In this study, y was set at 45 years. This assumes workers are exposed to work related injury hazards for approximately 45 years, starting at age 20. The formula is then multiplied by 1,000 to derive the number of fatal occupational injuries per 1,000 workers, as follows:

R = 0.0014 = 140 fatalities per 100,000 employment = a 0.14 percent probability of a worker having a work related fatal injury in a given year; 1   R = 1   0.0014 = 0.9986 = a 99.86 percent probability of a worker not having a fatal occupational injury in a given year; ( 1   R) 45 = 0.998645 = 0.9389 = a 93.89 percent probability of surviving 45 years without having a work related fatal injury; 1   ( 1   R) 45 = 1   0.9389 = 0.0611 = a 6.11 percent probability of having a work related fatal injury over 45 years of employment

While it is tempting to view the inverse of 0.0611 ( 1: 16) as the probability a worker faces of suffering a fatal occupational injury over a theoretical 45 year fishing career, because of such factors as turnover, the risk should be expressed on a per 1,000 worker basis as follows:

[ 1   ( 1   R) 45] x 1,000 = 0.0611 x 1,000 = 61 fatalities per 1,000 employment over a 45 year period comprising a working lifetime. 7 Compensation and Working Conditions Summer 1998 1 Sebastian Junger, The Perfect Storm, W. W. Norton, New York, 1997, pp. 44 45. 2 For 1996, the occupation with the next highest rate is timber cutters at 157, followed by airplane pilots ( 88), structural metal workers ( 85), and extractive occupations ( 67). 3 For a good explanation of the methodology used to derive this statistic, see David E. Fosbroke, Suzanne M. Kisner, and John R. Myers, " Working Lifetime Risk of Occupational Fatal Injury," American Journal of Industrial Medicine, Vol. 31, Wiley Liss, Inc., 1997, pp. 460 61. See Technical note at the end of this article. 4 Junger, The Perfect Storm, pp. 114 15, 123, 150. 5 NIOSH Alert: Request for Assistance in Preventing Drownings of Commercial Fishermen National Institute for Occupational Safety and Health, Publication No. 94 107, April 1994, p. 4. 6 Junger, The Perfect Storm, pp. 52, 70. 7 NIOSH Alert: Request for Assistance, p. 2. 8 Commercial Fishing Fatalities in Alaska: Risk Factors and Prevention Strategies, National Institute for Occupational Safety and Health, Current Intelligence Bulletin 58, September 1997, p. 12. 9 Scuba is an acronym for self contained underwater breathing apparatus. 10 Commercial Fishing Fatalities in Alaska, p. 12. 11 Occupational Outlook Handbook, 1998   ENDNOTES   99 Edition, Bureau of Labor Statistics, Bulletin 2500, January 1998, p. 417. 12 Ibid., pp. 416 18. 13 NIOSH Update: College Students May be Risking Their Lives on Fishing Vessels: Working in the Alaska Fishing Industry is one of the Nation's Most Hazardous Jobs, National Institute for Occupational Safety and Health, Publication No. 94 111, April 1994. 14 For a fuller discussion, see Junger, The Perfect Storm, pp. 15, 48 49. 15 Commercial Fishing Fatalities in Alaska, pp. ix, 2. 16 Shellfish include cephalopods such as squid, crustaceans such as lobster and shrimp, and univalve and bivalve mollusks such as abalone and clams, whereas finfish   such as shark, tuna, and salmon   are all vertebrates. Some of the hazards confronting shellfishers are different from those confronting finfishers. For example, shellfishing for king crab is done using cages called " pots"   some weighing over 700 pounds ( 318 kilograms)   which are stored on the deck where they might fall on someone, whereas finfishers do not use pots. Many types of finfishing, such as long lining, however, make use of numerous hooks, which can puncture and pull a fisher overboard. 17 Industry employment figures are from the Covered Employment and Wages ( also known as the ES 202) program. See the annual publication Employment and Wages, Annual Averages, for the years 1992 through 1996. 18 Fisheries of the United States, 1996, National Marine Fisheries Service, Current Fishery Statistics No. 9600, July 1997, pp. iv, 10 13. Weights for all fish are reported in round weight ( defined as weight of fish as taken from the water the complete or full " live" weight when caught), except for univalve and bivalve mollusks which are reported in meat weight ( excluding the shell). 19 Employment data for race and age are derived from the Current Population Survey. 20 See Fosbroke, Kisner, and Meyers, " Working Lifetime Risk;" Richard D. Kennedy and Jennifer M. Lincoln, " Epidemiology of Fatal Injury in the U. S. Commercial Fishing Industry," Safety and Health in Agriculture, Forestry, and Fisheries Government Institutes, Inc., Rockville, Maryland, 1997, pp. 557 70; Patricia G. Schnitzer, Deborah D. Landen, and Julie C. Russell, " Occupational Injury Deaths in Alaska's Fishing Industry, 1980 through 1988," American Journal of Public Health, Vol. 83, No. 5, May 1993, pp. 685 88; NIOSH Alert: Request for Assistance; Commercial Fishing Fatalities in Alaska; NIOSH Update: College Students May be Risking Their Lives. 21 Fisheries of the United States, pp. 125, 127. 22 Ibid., pp. 98, 106. 23 Employment data are derived from various sources including the Current Population Survey; the Occupational Outlook Handbook, p. 417; and CFOI.


[Federal Register Volume 84, Number 21 (Thursday, January 31, 2019)]
[Notices]
[Pages 705-706]
[FR Doc No: 2019-00523]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

Combined Notice of Filings #1

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

    Docket Numbers: EC19-48-000.
    Applicants: American Electric Power Service Corporation, AEP Ohio
Transmission Company, Inc.
    Description: Joint Application for Authorization Under Section 203
of the Federal Power Act of American Electric Power Service
Corporation, on behalf of affiliate AEP Ohio Transmission Company, Inc.
    Filed Date: 1/23/19.
    Accession Number: 20190123-5081.
    Comments Due: 5 p.m. ET 2/13/19.

    Docket Numbers: EC19-49-000.
    Applicants: Oklahoma Gas and Electric Company.
    Description: Application for Authorization Under Section 203 of the
Federal Power Act, et al. of Oklahoma Gas and Electric Company.
    Filed Date: 1/23/19.
    Accession Number: 20190123-5082.
    Comments Due: 5 p.m. ET 2/13/19.

    Take notice that the Commission received the following exempt
wholesale generator filings:

    Docket Numbers: EG19-50-000.
    Applicants: Innolith Snook LLC.
    Description: Notice of Self-Certification of Exempt Wholesale
Generator Status of Innolith Snook LLC.
    Filed Date: 1/23/19.
    Accession Number: 20190123-5070.
    Comments Due: 5 p.m. ET 2/13/19.

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

    Docket Numbers: ER10-3307-000.
    Applicants: NRG Energy Center Dover LLC.
    Description: Report Filing: Refund Report to be effective N/A.
    Filed Date: 1/23/19.
    Accession Number: 20190123-5017.
    Comments Due: 5 p.m. ET 2/13/19.

    Docket Numbers: ER17-706-006.
    Applicants: GridLiance West LLC.
    Description: Compliance filing: GLW 206 Compliance Filing [EL18-
158] to be effective 6/27/2018.
    Filed Date: 1/22/19.
    Accession Number: 20190122-5209.
    Comments Due: 5 p.m. ET 2/12/19.

    Docket Numbers: ER19-537-001; ER14-608-002; ER16-1644-002; ER17-
1214-001.
    Applicants: MRP San Joaquin Energy, LLC, High Desert Power Project,
LLC, MRP Generation Holdings, LLC, Coso Geothermal Power Holdings, LLC.
    Description: Supplement to December 13, 2018 Notice of Change in
Status of MRP San Joaquin Energy, LLC, et. al.
    Filed Date: 1/22/19.
    Accession Number: 20190122-5301.
    Comments Due: 5 p.m. ET 2/12/19.

    Docket Numbers: ER19-840-000.
    Applicants: PJM Interconnection, L.L.C.
    Description: Sec.  205(d) Rate Filing: Second Revised ISA, SA No.
2136; Queue No. AC1-038/AC2-172 to be effective 12/22/2018.
    Filed Date: 1/22/19.
    Accession Number: 20190122-5202.
    Comments Due: 5 p.m. ET 2/12/19.

    Docket Numbers: ER19-841-000.
    Applicants: Energy Center Dover LLC.
    Description: Baseline eTariff Filing: Baseline MBR Tariff Refiling,
Request for Administrative Cancellation & Waivers to be effective 1/23/
2019.
    Filed Date: 1/22/19.
    Accession Number: 20190122-5203.
    Comments Due: 5 p.m. ET 2/12/19.

    Docket Numbers: ER19-842-000.
    Applicants: Energy Center Paxton LLC.
    Description: Baseline eTariff Filing: Baseline MBR Tariff Refiling,
Request for Administrative Cancellation & Waivers to be effective 1/23/
2019.
    Filed Date: 1/22/19.
    Accession Number: 20190122-5204.
    Comments Due: 5 p.m. ET 2/12/19.

    Docket Numbers: ER19-843-000.
    Applicants: Solar Blythe LLC.
    Description: Baseline eTariff Filing: Baseline MBR Tariff Refiling,
Request for Administrative Cancellation & Waivers to be effective 1/23/
2019.
    Filed Date: 1/22/19.
    Accession Number: 20190122-5205.
    Comments Due: 5 p.m. ET 2/12/19.

    Docket Numbers: ER19-844-000.

    Applicants: Solar Roadrunner LLC.
    Description: Baseline eTariff Filing: Baseline MBR Tariff Refiling,
Request for Administrative Cancellation & Waivers to be effective 1/23/
2019.
    Filed Date: 1/22/19.
    Accession Number: 20190122-5206.
    Comments Due: 5 p.m. ET 2/12/19.

    Docket Numbers: ER19-853-000.
    Applicants: Consolidated Edison Energy, Inc.
    Description: Request for Additional Cost Recovery of Consolidated
Edison Energy, Inc.
    Filed Date: 1/18/19.
    Accession Number: 20190118-5210.
    Comments Due: 5 p.m. ET 2/8/19.

    Docket Numbers: ER19-854-000.
    Applicants: Innolith Snook LLC.
    Description: Baseline eTariff Filing: Innolith Snook LLC MBR Tariff
to be effective 1/24/2019.
    Filed Date: 1/23/19.
    Accession Number: 20190123-5061.
    Comments Due: 5 p.m. ET 2/13/19.

    Docket Numbers: ER19-856-000.
    Applicants: Commonwealth Edison Company, PJM Interconnection,
L.L.C.
    Description: Sec.  205(d) Rate Filing: ComEd submits revisions to
Att. H-13 re: Sun-Mountain Hilltop WDC to be effective 1/24/2019.
    Filed Date: 1/23/19.
    Accession Number: 20190123-5077.
    Comments Due: 5 p.m. ET 2/13/19.

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

    Docket Numbers: ES19-9-000; ES19-10-000; ES19-11-000; ES19-12-000.
    Applicants: Transource Maryland, LLC, Transource Missouri, LLC,
Transource Pennsylvania, LLC, Transource West Virginia, LLC.
    Description: Application under Section 204 of the Federal Power Act
for Authorization to Issue Securities of Transource Maryland, LLC, et
al.
    Filed Date: 1/22/19.
    Accession Number: 20190122-5302.
    Comments Due: 5 p.m. ET 2/12/19.

    The filings are accessible in the Commission's eLibrary system by
clicking on the links or querying the docket number.
    Any person desiring to intervene or protest in any of the above
proceedings must file in accordance with Rules 211 and 214 of the
Commission's Regulations (18 CFR 385.211 and 385.214) on or before 5:00
p.m. Eastern time on the specified comment date. Protests may be
considered, but intervention is necessary to become a party to the
proceeding.
    eFiling is encouraged. More detailed information relating to filing
requirements, interventions, protests, service, and qualifying
facilities filings can be found at: http://www.ferc.gov/docs-filing/efiling/filing-req.pdf. For other information, call<PHONE_NUMBER>
(toll free). For TTY, call<PHONE_NUMBER>.

    Dated: January 23, 2019.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2019-00523 Filed 1-30-19; 8:45 am]
 BILLING CODE 6717-01-P


[Federal Register: May 31, 2006 (Volume 71, Number 104)]
[Notices]
[Page 30975-30976]
[DOCID:fr31my06-151]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-53854; File No. SR-BSE-2006-23]

Self-Regulatory Organizations; Boston Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating To Decreasing the Exposure Period for Crossing Orders Under
Chapter V, Section 17, Supplementary Material .02 and .03

May 24, 2006.
    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 May 11, 2006, the Boston Stock Exchange, Inc. (``BSE'') 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 BSE. The BSE filed the proposed rule change as a ``non-
controversial'' rule change pursuant to Section 19(b)(3)(A) of the Act
\3\ and Rule 19b-4(f)(6) thereunder,\4\ which renders the proposal
effective upon filing with the Commission. 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).
    \4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The BSE proposes to decrease the exposure period for crossing
orders under Chapter V, Section 17, Supplementary Material .02 and .03
of the Boston Options Exchange (``BOX'') rules from 30 seconds to 3
seconds. The text of the proposed rule amendment is provided below.
* * * * *
    (Additions are italicized; deletions are [bracketed], unless
otherwise indicated)
Rules of the Boston Options Exchange Facility
CHAPTER V. DOING BUSINESS ON BOX
Sec. 17 Customer Orders and Order Flow Providers
    (a) through (c) No Change.
Supplementary Material to Section 17
    .01 No Change.
    .02 If an Options Participant fails to expose its Customer Order[s]
\5\ on BOX, it will be a violation of this Section 17 for an Options
Participant to cause the execution of an order it represents as agent
on BOX through the use of orders it solicited from Options Participants
and/or non-Participant broker-dealers to transact with such orders,
whether such solicited orders are entered into the BOX market directly
by the Options Participant or by the solicited party (either directly
or through another Participant), unless the agency order is first
exposed to the BOX Book for at least [thirty (30)]three (3) seconds.
---------------------------------------------------------------------------

    \5\ The ``s'' and surrounding brackets appear in the current
rule text, and are not intended to be deletions under the proposed
rule change.
---------------------------------------------------------------------------

    .03 An OFP may not execute as principal an order it represents as
agent unless, (i) the agency order is first exposed to the BOX Book for
at least [thirty (30)]three (3) seconds, or (ii) the OFP has been
bidding or offering on BOX for a least [thirty (30)]three (3) seconds
prior to receiving an agency order that is executable against such bid
or offer; or (iii) the OFP sends the agency order to the Price
Improvement Period process pursuant to Section 18 of this Chapter V.
    .04 No Change.
* * * * *

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 BSE 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 BSE 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
    An Options Participant (``Participant'') may not execute an order
it represents as agent with a facilitation or a solicited order
(referred to herein as ``crossing orders'') unless it complies with the
order exposure requirements contained in Chapter V, Section 17,
Supplementary Material .03 and .02 respectively. Specifically, when a
Participant is not submitting an order to the Price Improvement Period
process, it may not execute a facilitation cross unless (i) the agency
order is first exposed to the BOX Book for at least 30 seconds; or (ii)
the Participant has been bidding or offering on BOX for at least 30
seconds prior to receiving the agency order that is executable against
such bid or offer. Similarly, a Participant may not execute a
solicitation cross unless the agency order is first exposed to the BOX
Book for 30 seconds.
    The BSE proposes to shorten the duration of the exposure period
contained in the rules governing such transactions from 30 seconds to 3
seconds. This shortened exposure period is fully consistent with the
electronic nature of the BOX's market. Market participants on the BOX
market have implemented systems that monitor any updates to the BOX
market, including any changes resulting from orders being entered into
the market, and can automatically respond based on pre-set parameters.
Thus, an exposure period of 3 seconds will permit exposure of orders on
BOX in a manner consistent with its electronic market.
    By reducing the exposure time to 3 seconds, the BSE believes that
Participants will be able to provide liquidity to their customers'
orders on a timelier basis, thus providing investors with more speedy
executions. Timely and accurate executions are consistent with the
principles under which the BOX's electronic market was developed.
2. Statutory Basis
    The BSE believes that the proposal is consistent with the
requirements of section 6(b) of the Act,\6\ in general, and Section
6(b)(5) of the Act,\7\ 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 regulating, clearing, settling,

processing information with respect to, and 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 particular, the proposal
will permit members to provide liquidity to customer orders on a
timelier basis, thus providing investors with more speedy executions.
At the same time, it will preserve a reasonable period for orders to
interact in the auction market.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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

    The BSE 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

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

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

    Because the foregoing 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 \8\ and Rule 19b-
4(f)(6) thereunder.\9\
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule
change, the Commission may summarily abrogate 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.
    A proposed rule change filed under Rule 19b-4(f)(6) normally may
not become operative prior to 30 days after the date of filing.\10\
However, Rule 19b-4(f)(6)(iii) \11\ permits the Commission to designate
a shorter time if such action is consistent with the protection of
investors and the public interest. The BSE provided the Commission with
written notice of its intent to file this proposed rule change at least
five business days prior to the date of filing of the proposed rule
change. In addition, the BSE has requested that the Commission waive
the 30-day operative delay. The Commission believes that waiving the
30-day operative delay is consistent with the protection of investors
and the public interest because the proposed rule change is based on
rules recently approved by the Commission for two other exchanges.\12\
For this reason, the Commission designates the proposal to be effective
and operative upon filing with the Commission.\13\
---------------------------------------------------------------------------

    \10\ 17 CFR 240.19b-4(f)(6)(iii).
    \11\ Id.
    \12\ See Securities Exchange Act Release Nos. 53567 (March 29,
2006), 71 FR 17529 (April 6, 2006) (SR-CBOE-2006-09) and 53609
(April 6, 2006), 71 FR 19224 (April 13, 2006) (SR-NYSEArca-2006-01).
    \13\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------

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 e-mail to<EMAIL_ADDRESS>Please include

File Number SR-BSE-2006-23 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-BSE-2006-23. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml
). Copies of the submission, all subsequent amendments, all

written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for inspection and
copying in the Commission's Public Reference Room. Copies of such
filing also will be available for inspection and copying at the
principal office of the BSE. 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-BSE-2006-23 and should be submitted on or before June
21, 2006.

    For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\14\
---------------------------------------------------------------------------

    \14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Nancy M. Morris,
Secretary.
 [FR Doc. E6-8357 Filed 5-30-06; 8:45 am]

BILLING CODE 8010-01-P


[Federal Register Volume 77, Number 56 (Thursday, March 22, 2012)]
[Notices]
[Pages 16873-16877]
[FR Doc No: 2012-6865]

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SECURITIES AND EXCHANGE COMMISSION

[Investment Company Act Release No. 29983; File No. 812-13795]

First Trust Exchange-Traded Fund, et al.; Notice of Application

March 15, 2012.
AGENCY: Securities and Exchange Commission (``Commission'').

ACTION: Notice of an application for an order under section 6(c) of the
Investment Company Act of 1940 (``Act'') for an exemption from sections
2(a)(32), 5(a)(1), 22(d) and 22(e) of the Act and rule 22c-1 under the
Act and under sections 6(c) and 17(b) of the Act for an exemption from
sections 17(a)(1) and (a)(2) of the Act.

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Applicants: First Trust Exchange-Traded Fund (the ``Initial Trust''),
First Trust Exchange-Traded Fund II (``Trust II''), First Trust
Exchange-Traded Fund III (``Trust III''), First Trust Exchange-Traded
Fund IV (``Trust IV''), First Trust Exchange-Traded AlphaDEX[supreg]
Fund (``AlphaDEX Trust''), First Trust Exchange-Traded AlphaDEX[supreg]
Fund II (``AlphaDEX Trust II'' and, together with the Initial Trust,
Trust II, Trust III, Trust IV and the AlphaDEX Trust, ``Existing
Trusts''), First Trust Advisors L.P. (the ``Advisor''), and First Trust
Portfolios L.P. (the ``Distributor'').

SUMMARY: Summary of Application: Applicants request an order that
permits: (a) Series of certain actively managed open-end management
investment companies to issue shares (``Shares'') redeemable in large
aggregations only (``Creation Units''); (b) secondary market
transactions in Shares to occur at negotiated market prices; (c)
certain series to pay redemption proceeds, under certain circumstances,
more than seven days after the tender of Shares for redemption; and (d)
certain affiliated persons of the series to deposit securities into,
and receive securities from, the series in connection with the purchase
and redemption of Creation Units.

DATES: Filing Dates: The application was filed on July 15, 2010, and
amended on January 7, 2011, September 9, 2011, and March 12, 2012.

Hearing or Notification of Hearing: An order granting the requested
relief will be issued unless the Commission orders a hearing.
Interested persons may request a hearing by writing to the Commission's
Secretary and serving applicants with a copy of the request, personally
or by mail. Hearing requests should be received by the Commission by
5:30 p.m. on April 9, 2012, and should be accompanied by proof of
service on applicants, in the form of an affidavit or, for lawyers, a
certificate of service. Hearing requests should state the nature of the
writer's interest, the reason for the request, and the issues
contested. Persons who wish to be notified of a hearing may request
notification by writing to the Commission's Secretary.

ADDRESSES: Elizabeth M. Murphy, Secretary, U.S. Securities and Exchange
Commission, 100 F Street NE., Washington, DC 20549-1090. Applicants:
120 East Liberty Drive, Suite 400, Wheaton, IL 60187, Attn: W. Scott
Jardine.

FOR FURTHER INFORMATION CONTACT: Laura L. Solomon, Senior Counsel, at
(202) 551-6915, or Janet M. Grossnickle, Assistant Director, at (202)
551-6821 (Division of Investment Management, Office of Investment
Company Regulation).

SUPPLEMENTARY INFORMATION: The following is a summary of the
application. The complete application may be obtained via the
Commission's Web site by searching for the file number, or an applicant
using the Company name box, at http://www.sec.gov/search/search.htm or
by calling<PHONE_NUMBER>.

Applicants' Representations

    1. The Existing Trusts are each open-end management investment
companies registered under the Act and organized as Massachusetts
business trusts. Trust IV will offer one series which will be a Fixed
Income Fund as defined below (the ``Initial Fund''). Applicants intend
to name the Initial Fund the First Trust Senior Loan Fund. The Initial
Fund's investment objective will be to provide high current income. The
Initial Fund is expected to invest at least 80% of its net assets
(including investment borrowings) in senior loans, which may include
loan interests that are not secured by any specific collateral of the
borrower, loan interests that have a lower than first lien priority on
collateral of the borrower, loans to foreign borrowers, loans in
foreign currencies and other loans with characteristics that the
Advisor believes qualify as senior loans.
    2. The Advisor is registered as an investment adviser under the
Investment Advisers Act of 1940 (``Advisers Act'') and it or an entity
controlling, controlled by or under common control with the Advisor
will serve as the investment adviser to the Funds (as defined below).
The Advisor may in the future retain one or more subadvisers (``Fund
Subadvisors'') to manage the Funds' portfolios. Any Fund Subadvisor
will be registered under the Advisers Act. The Distributor is, or
another entity (a ``Future Distributor''), will be a broker-dealer
registered under the Securities Exchange Act of 1934 (``Exchange
Act''), and will serve as the principal underwriter and distributor for
the Funds.\1\
---------------------------------------------------------------------------

    \1\ All entities that currently intend to rely on the order are
named as applicants. Any other entity that relies on the order in
the future will comply with the terms and conditions of the
application.
---------------------------------------------------------------------------

    3. Applicants request that the order apply to the Existing Trusts,
the Initial Fund, and to any other open-end management investment
company existing or created in the future (together with the Existing
Trusts, the ``Trusts'' and each a ``Trust'') and any existing or future
series of the Trusts that may utilize active management investment
strategies and invest (i) in fixed income securities (including without
limitation exchange-traded notes and senior loans) (such securities,
``Fixed Income Securities'' and each such series, a ``Fixed Income
Fund'') or (ii) in a combination of equity securities (which may
include shares of other exchange-traded funds, money market mutual
funds or other investment companies) and Fixed Income Securities (each
such series, a ``Balanced Fund'') (collectively, ``Future Funds'',
together with the Initial Fund, the ``Funds'').\2\ Any Future Fund will
be (a) advised by the Advisor or an entity controlling, controlled by,
or under common control with the Advisor, and (b) comply with the terms
and conditions of the application. Fixed Income Funds that invest all
or a portion of their assets in securities not traded in the U.S.
markets are each an ``International Fixed Income Fund.'' International
Fixed Income Funds and Balanced Funds that invest all or a portion of
their assets in securities not traded in U.S. markets are referred to
as ``International Funds.'' Applicants anticipate that certain
International Funds may invest a portion of their assets in depositary
receipts representing foreign securities in which they seek to invest

(``Depositary Receipts'').\3\ The Funds will not invest in options
contracts, futures contracts or swap agreements. Each Fund will operate
as an actively-managed exchange-traded fund (``ETF'').
---------------------------------------------------------------------------

    \2\ Pursuant to a prior order, Applicants may operate actively
managed exchange-traded funds that invest primarily in equity
securities. First Trust Advisors L.P., et al., Investment Co. Act
Release Nos. 28421 (Sep. 29, 2008) (notice) and 28468 (Oct. 27,
2008) (order). In addition, applicants have prior orders to operate
index based exchange-traded funds that invest primarily in equity
securities. First Trust Exchange-Traded Fund et al., Investment Co.
Act Release Nos. 27051 (Aug. 26, 2005) (notice) and 27068 (Sep. 20,
2005) (order) as amended by Investment Co. Act Release Nos. 27772
(Mar. 30, 2007) (notice) and 27784 (Apr. 25, 2007) (order).
    \3\ A Fund will not invest in any Depositary Receipts that the
Advisor or any Fund Subadvisor(s) deems to be illiquid or for which
pricing information is not readily available. No affiliated persons
of applicants will serve as the depositary bank for any Depositary
Receipts held by a Fund.
---------------------------------------------------------------------------

    4. Shares of the Initial Fund will be sold at a price of between
$20 and $200 per Share in Creation Units of at least 25,000 Shares. All
orders to purchase Creation Units must be placed with the Distributor
by or through an ``Authorized Participant,'' which is either: (a) a
broker-dealer or other participant in the National Securities Clearing
Corporation (``NSCC Process''), or (b) a participant in the Depository
Trust Company (``DTC,'' such participant, ``DTC Participant'', and
facilities of the DTC (the ``DTC Process'')), which in either case has
executed an agreement with the Distributor and the Transfer Agent, with
respect to purchases and redemptions of Creation Units.
    5. Shares will be purchased and redeemed in Creation Units and
generally on an in-kind basis. Except where the purchase or redemption
will include cash under the limited circumstances specified below,
purchasers will be required to purchase Creation Units by making an in-
kind deposit of specified instruments (``Deposit Instruments''), and
shareholders redeeming their Shares will receive an in-kind transfer of
specified instruments (``Redemption Instruments'').\4\ On any given
Business Day \5\ the names and quantities of the instruments that
constitute the Deposit Instruments and the names and quantities of the
instruments that constitute the Redemption Instruments will be
identical, and these instruments may be referred to, in the case of
either a purchase or a redemption, as the ``Creation Basket.'' In
addition, the Creation Basket will correspond pro rata to the positions
in the Fund's portfolio (including cash positions) as of the end of the
prior Business Day, except: (a) In the case of bonds, for minor
differences when it is impossible to break up bonds beyond certain
minimum sizes needed for transfer and settlement; (b) for minor
differences when rounding is necessary to eliminate fractional shares
or lots that are not tradeable round lots; \6\ or (c) TBA
Transactions,\7\ short positions and other positions that cannot be
transferred in kind \8\ will be excluded from the Creation Basket.\9\
If there is a difference between the net asset value (``NAV'')
attributable to a Creation Unit and the aggregate market value of the
Creation Basket exchanged for the Creation Unit, the party conveying
instruments with the lower value will also pay to the other an amount
in cash equal to that difference (the ``Cash Amount'').
---------------------------------------------------------------------------

    \4\ The Funds must comply with the federal securities laws in
accepting Deposit Instruments and satisfying redemptions with
Redemption Instruments, including that the Deposit Instruments and
Redemption Instruments are sold in transactions that would be exempt
from registration under the Securities Act. In accepting Deposit
Instruments and satisfying redemptions with Redemption Instruments
that are restricted securities eligible for resale pursuant to rule
144A under the Securities Act, the Funds will comply with the
conditions of Rule 144A.
    \5\ A Trust will issue, sell and redeem Creation Units of the
applicable Fund on any day that the Trust is open for business,
including as required by section 22(e) of the Act (each, a
``Business Day'').
    \6\ A tradeable round lot for a security will be the standard
unit of trading in that particular type of security in its primary
market.
    \7\ A TBA Transaction is a method of trading mortgage-backed
securities. In a TBA Transaction, the buyer and seller agree on
general trade parameters such as agency, settlement date, par amount
and price.
    \8\ This includes instruments that can be transferred in kind
only with the consent of the original counterparty to the extent the
Fund does not intend to seek such consents.
    \9\ Because these instruments will be excluded from the Creation
Basket, their value will be reflected in the determination of the
Cash Amount (defined below).
---------------------------------------------------------------------------

    6. Purchases and redemptions of Creation Units may be made in whole
or in part on a cash basis, rather than in kind, solely under the
following circumstances: (a) To the extent there is a Cash Amount, as
described above; (b) if, on a given Business Day, the Fund announces
before the open of trading that all purchases, all redemptions or all
purchases and redemptions on that day will be made entirely in cash;
(c) if, upon receiving a purchase or redemption order from an
Authorized Participant, the Fund determines to require the purchase or
redemption, as applicable, to be made entirely in cash; (d) if, on a
given Business Day, the Fund requires all Authorized Participants
purchasing or redeeming Shares on that day to deposit or receive (as
applicable) cash in lieu of some or all of the Deposit Instruments or
Redemption Instruments, respectively, solely because: (i) Such
instruments are not eligible for transfer through either the NSCC
Process or DTC Process; or (ii) in the case of International Funds,
such instruments are not eligible for trading due to local trading
restrictions, local restrictions on securities transfers or other
similar circumstances; or (e) if the Fund permits an Authorized
Participant to deposit or receive (as applicable) cash in lieu of some
or all of the Deposit Instruments or Redemption Instruments,
respectively, solely because: (i) Such instruments are, in the case of
the purchase of a Creation Unit, not available in sufficient quantity;
(ii) such instruments are not eligible for trading by an Authorized
Participant or the investor on whose behalf the Authorized Participant
is acting; or (iii) a holder of Shares of an International Fund would
be subject to unfavorable income tax treatment if the holder receives
redemption proceeds in kind.\10\
---------------------------------------------------------------------------

    \10\ A ``custom order'' is any purchase or redemption of Shares
made in whole or in part on a cash basis in reliance on clause
(e)(i) or (e)(ii).
---------------------------------------------------------------------------

    7. Each Business Day, before the open of trading on the national
securities exchange as defined in section 2(a)(26) of the Act (``Stock
Exchange'') upon which its Shares are listed and traded, the Fund will
cause to be published through the NSCC the names and quantities of the
instruments comprising the Creation Basket, as well as the estimated
Cash Amount (if any), for that day. The published Creation Basket will
apply until a new Creation Basket is announced on the following
Business Day, and there will be no intra-day changes to the Creation
Basket except to correct errors in the published Creation Basket. The
Stock Exchange or a major market data vendor will disseminate every 15
seconds throughout the trading day an amount representing, on a per
Share basis, the sum of the current value of the Deposit Instruments
and the estimated Cash Amount.
    8. An investor purchasing a Creation Unit from a Fund will be
charged a fee (``Transaction Fee'') to prevent the dilution of the
interests of the remaining shareholders resulting from costs in
connection with the purchase of Creation Units.\11\ Orders to purchase
Creation Units will be placed with the Distributor by or through an
Authorized Participant and it will be the Distributor's responsibility
to transmit such orders to the Funds. The Distributor also will be
responsible for maintaining records of both the orders placed with it
and the confirmations of acceptance furnished by it.
---------------------------------------------------------------------------

    \11\ Where a Fund permits an in-kind purchaser to substitute
cash in lieu of depositing a portion of the Deposit Instruments, the
purchaser may be assessed a higher Transaction Fee to cover the cost
of purchasing those securities.
---------------------------------------------------------------------------

    9. Purchasers of Shares in Creation Units may hold such Shares or
may sell such Shares into the secondary market. Shares will be listed
and traded on a Stock Exchange. One or more Stock Exchange specialists
or market makers (together, ``Market Makers'') will be assigned to the
Shares. If Shares are

listed on the NASDAQ Stock Market LLC (``Nasdaq'') or a similar
electronic Stock Exchange (including NYSE Arca, Inc.), one or more
member firms of that Stock Exchange will act as a Market Maker and
maintain a market for Shares trading on that Stock Exchange.\12\ Prices
of Shares trading on a Stock Exchange will be based on the current bid/
offer market. Shares sold in the secondary market will be subject to
customary brokerage commissions and charges.
---------------------------------------------------------------------------

    \12\ If Shares are listed on Nasdaq, no particular Market Maker
would be contractually obligated to make a market in Shares.
However, the listing requirements on Nasdaq, stipulate that at least
two Market Makers must be registered in Shares to maintain a
listing. Registered Market Makers are required to make a continuous
two-sided market or subject themselves to regulatory sanctions. No
Market Maker will be an affiliated person, or an affiliated person
of an affiliated person, of the Funds, except within section
2(a)(3)(A) or (C) of the Act due to ownership of Shares.
---------------------------------------------------------------------------

    10. Applicants expect that purchasers of Creation Units will
include institutional investors and arbitrageurs (which could include
institutional investors). The Market Maker, in providing a fair and
orderly secondary market for the Shares, also may purchase Creation
Units for use in its market-making activities. Applicants expect that
secondary market purchasers of Shares will include both institutional
investors and retail investors.\13\ Applicants expect that the price at
which the Shares trade will be disciplined by arbitrage opportunities
created by the ability to continually purchase or redeem Creation Units
at their NAV, which should ensure that the Shares will not trade at a
material discount or premium in relation to their NAV.
---------------------------------------------------------------------------

    \13\ Shares will be registered in book-entry form only. DTC or
its nominee will be the registered owner of all outstanding Shares.
DTC or DTC Participants will maintain records reflecting beneficial
owners of Shares.
---------------------------------------------------------------------------

    11. Shares will not be individually redeemable, and owners of
Shares may acquire those Shares from a Fund, or tender such Shares for
redemption to the Fund, in Creation Units only. To redeem, an investor
will have to accumulate enough Shares to constitute a Creation Unit.
Redemption orders must be placed by or through an Authorized
Participant. As discussed above, redemptions of Creation Units will
generally be made on an in-kind basis, subject to certain specified
exceptions under which redemptions may be made in whole or in part on a
cash basis. A redeeming investor may pay a Transaction Fee, calculated
in the same manner as a Transaction Fee payable in connection with the
purchase of a Creation Unit.\14\
---------------------------------------------------------------------------

    \14\ All Transaction Fees will be limited in accordance with
requirements of the Commission applicable to management investment
companies offering redeemable securities.
---------------------------------------------------------------------------

    12. Neither a Trust nor any individual Fund will be marketed or
otherwise held out as an ``open-end investment company'' or a ``mutual
fund.'' Instead, each Fund will be marketed as an ``actively-managed
exchange-traded fund.'' All marketing materials that describe the
method of obtaining, buying or selling Shares, or refer to
redeemability, will prominently disclose that Shares are not
individually redeemable and that the owners of Shares may purchase or
redeem Shares from a Fund in Creation Units only.
    13. The Distributor's Web site, which will be publicly available
prior to the public offering of Shares, will include the current
Prospectus and Summary Prospectus (if any) for each Fund. The Web site
for the Funds which is and will be publicly accessible will contain, on
a per Share basis for each Fund, the prior Business Day's NAV and the
market closing price or the mid-point of the bid/ask spread at the time
of calculation of such NAV (the ``Bid/Ask Price''), and a calculation
of the premium or discount of the market closing price or Bid/Ask Price
against such NAV. On each Business Day, before the commencement of
trading in Shares on the Stock Exchange, each Fund will disclose on the
Web site the identities and quantities of the securities (``Portfolio
Securities'') and other assets held by the Fund that will form the
basis for the Fund's calculation of NAV at the end of the Business
Day.\15\
---------------------------------------------------------------------------

    \15\ Under accounting procedures followed by the Funds, trades
made on the prior Business Day (``T'') will be booked and reflected
in NAV on the current Business Day (``T + 1''). Accordingly, the
Funds 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.
---------------------------------------------------------------------------

Applicants' Legal Analysis

    1. Applicants request an order under section 6(c) of the Act
granting an exemption from sections 2(a)(32), 5(a)(1), 22(d) and 22(e)
of the Act and rule 22c-1 under the Act; and under sections 6(c) and
17(b) of the Act granting an exemption from sections 17(a)(1) and
(a)(2) of the Act.
    2. Section 6(c) of the Act provides that the Commission may exempt
any person, security or transaction, or any class of persons,
securities or transactions, from any provision of the Act, if and to
the extent that such exemption is necessary or appropriate in the
public interest and consistent with the protection of investors and the
purposes fairly intended by the policy and provisions of the Act.
Section 17(b) of the Act authorizes the Commission to exempt a proposed
transaction from section 17(a) of the Act if evidence establishes that
the terms of the transaction, including the consideration to be paid or
received, are reasonable and fair and do not involve overreaching on
the part of any person concerned, and the proposed transaction is
consistent with the policies of the registered investment company and
the general provisions of the Act.

Sections 5(a)(1) and 2(a)(32) of the Act

    3. Section 5(a)(1) of the Act defines an ``open-end company'' as a
management investment company that is offering for sale or has
outstanding any redeemable security of which it is the issuer. Section
2(a)(32) of the Act defines a redeemable security as any security,
other than short-term paper, under the terms of which the holder, upon
its presentation to the issuer, is entitled to receive approximately
his proportionate share of the issuer's current net assets, or the cash
equivalent. Because Shares will not be individually redeemable,
applicants request an order that would permit each Fund, as a series of
an open-end management investment company, to issue Shares that are
redeemable in Creation Units only. Applicants state that investors may
purchase Shares in Creation Units from each Fund and that Creation
Units always redeemable in accordance with the provisions of the Act.
Applicants further state that because the market price of Shares will
be disciplined by arbitrage opportunities, investors should be able to
sell Shares in the secondary market at prices that do not vary
substantially from their NAV.

Section 22(d) of the Act and Rule 22c-1 Under the Act

    4. Section 22(d) of the Act, among other things, prohibits a dealer
from selling a redeemable security, which is currently being offered to
the public by or through a principal underwriter, except at a current
public offering price described in the prospectus. Rule 22c-1 under the
Act generally requires that a dealer selling, redeeming, or
repurchasing a redeemable security do so only at a price based on its
NAV. Applicants state that secondary market trading in Shares will take
place at negotiated prices, not at a current offering price described
in the prospectus, and not at a price based on NAV. Thus, purchases and
sales of Shares in the secondary market will not

comply with section 22(d) of the Act and rule 22c-1 under the Act.
Applicants request an exemption under section 6(c) from these
provisions.
    5. Applicants assert that the concerns sought to be addressed by
section 22(d) of the Act and rule 22c-1 under the Act with respect to
pricing are equally satisfied by the proposed method of pricing Shares.
Applicants maintain that while there is little legislative history
regarding section 22(d), its provisions, as well as those of rule 22c-
1, appear to have been designed to (a) prevent dilution caused by
certain riskless-trading schemes by principal underwriters and contract
dealers, (b) prevent unjust discrimination or preferential treatment
among buyers resulting from sales at different prices, and (c) assure
an orderly distribution of investment company shares by eliminating
price competition from dealers offering shares at less than the
published sales price and repurchasing shares at more than the
published redemption price.
    6. Applicants believe that none of these purposes will be thwarted
by permitting Shares to trade in the secondary market at negotiated
prices. Applicants state that (a) secondary market trading in Shares
does not involve the Funds as parties and cannot result in dilution of
an investment in Shares, and (b) to the extent different prices exist
during a given trading day, or from day to day, such variances occur as
a result of third-party market forces, such as supply and demand.
Therefore, applicants assert that secondary market transactions in
Shares will not lead to discrimination or preferential treatment among
purchasers. Finally, applicants contend that the proposed distribution
system will be orderly because arbitrage activity will ensure that the
difference between the market price of Shares and their NAV remains
narrow.

Section 22(e) of the Act

    7. Section 22(e) generally prohibits a registered investment
company from suspending the right of redemption or postponing the date
of payment of redemption proceeds for more than seven days after the
tender of a security for redemption. Applicants state that settlement
of redemptions for the International Funds is contingent not only on
the settlement cycle of the United States markets, but also on
currently practicable delivery cycles in local markets for underlying
foreign securities held by the International Funds. Applicants state
that local market delivery cycles for transferring Redemption
Instruments to investors redeeming Creation Units, together with local
market holiday schedules, will under certain circumstances require a
delivery process in excess of seven calendar days for the International
Funds. Applicants request relief under section 6(c) of the Act from
section 22(e) to allow International Funds that deliver Redemption
Instruments in-kind to pay redemption proceeds up to a maximum of 15
calendar days after the tender of a Creation Unit for redemption.\16\
At all other times and except as disclosed in the relevant Statement of
Additional Information (``SAI''), applicants expect that each
International Fund will be able to deliver redemption proceeds within
seven days.\17\
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    \16\ In the past, settlement in certain countries, including
Russia, has extended to 15 calendar days.
    \17\ Rule 15c6-1 under the Exchange Act requires that most
securities transactions be settled within three business days of the
trade. Applicants acknowledge that no relief obtained from the
requirements of section 22(e) will affect any obligations applicants
may have under rule 15c6-1.
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    8. Applicants state that section 22(e) was designed to prevent
unreasonable, undisclosed and unforeseen delays in the payment of
redemption proceeds. Applicants assert that the requested relief will
not lead to the problems that section 22(e) was designed to prevent.
Applicants state that the SAI for each International Fund will disclose
those local holidays (over the period of at least one year following
the date of the SAI), if any, that are expected to prevent the delivery
of redemption proceeds in seven calendar days, and the maximum number
of days, up to a maximum of 15 calendar days, needed to deliver the
proceeds for the relevant International Fund. Applicants are seeking
relief from section 22(e) only for those International Funds that
create and redeem in-kind.

Sections 17(a)(1) and (2) of the Act

    9. Section 17(a)(1) and (2) of the Act generally prohibit an
affiliated person of a registered investment company, or an affiliated
person of such a person (``second tier affiliate''), from selling any
security to or purchasing any security from the company. Section
2(a)(3) of the Act defines ``affiliated person'' to include any person
directly or indirectly owning, controlling, or holding with power to
vote 5% or more of the outstanding voting securities of the other
person and any person directly or indirectly controlling, controlled
by, or under common control with, the other person. Section 2(a)(9) of
the Act provides that a control relationship will be presumed where one
person owns more than 25% of another person's voting securities. The
Funds may be deemed to be controlled by the Advisor or an entity
controlling, controlled by or under common control with the Advisor and
hence affiliated persons of each other. In addition, the Funds may be
deemed to be under common control with any other registered investment
company (or series thereof) advised by the Advisor or an entity
controlling, controlled by or under common control with the Advisor (an
``Affiliated Fund'').
    10. Applicants request an exemption from section 17(a), under
sections 6(c) and 17(b), to permit in-kind purchases and redemptions by
persons that are affiliated persons or second tier affiliates of the
Funds solely by virtue of one or more of the following: (1) Holding 5%
or more, or more than 25%, of the outstanding Shares of the respective
Trust or one or more Funds; (2) an affiliation with a person with an
ownership interest described in (1); or (3) holding 5% or more, or more
than 25%, of the shares of one or more Affiliated Funds.
    11. Applicants contend that no useful purpose would be served by
prohibiting these affiliated persons or second tier affiliates of a
Fund from purchasing or redeeming Creation Units through ``in-kind''
transactions. The deposit procedure for in-kind purchases and the
redemption procedure for in-kind redemptions will be the same for all
purchases and redemptions. The composition of a Creation Basket will be
the same and will be valued under the same objective standards applied
to valuing the Portfolio Securities. Therefore, applicants state that
in-kind purchases and redemptions will afford no opportunity for the
affiliated persons and second tier affiliates described above to effect
a transaction detrimental to the other holders of Shares. Applicants
also believe that in-kind purchases and redemptions will not result in
abusive self-dealing or overreaching by these persons of the Fund.

Applicants' Conditions

    The applicants agree that any order of the Commission granting the
requested relief will be subject to the following conditions:
    1. As long as the Funds operate in reliance on the requested order,
the Shares of the Funds will be listed on a Stock Exchange.
    2. Neither the Trusts nor any Fund will be advertised or marketed
as an open-end investment company or a mutual fund. Any advertising
material that describes the purchase or sale of Creation Units or
refers to redeemability will prominently disclose that the Shares are
not individually redeemable and that owners of the Shares may

acquire those Shares from the Fund and tender those Shares for
redemption to the Fund in Creation Units only.
    3. The Web site for the Funds, which is and will be publicly
accessible at no charge, will contain, on a per Share basis for each
Fund, the prior Business Day's NAV and the market closing price or Bid/
Ask Price, and a calculation of the premium or discount of the market
closing price or Bid/Ask Price against such NAV.
    4. On each Business Day, before commencement of trading in Shares
on the Stock Exchange, the Fund will disclose on its Web site the
identities and quantities of the Portfolio Securities and other assets
held by the Fund that will form the basis for the Fund's calculation of
NAV at the end of the Business Day.
    5. The Advisor or Fund Subadvisor (if any), directly or indirectly,
will not cause any Authorized Participant (or any investor on whose
behalf an Authorized Participant may transact with the Fund) to acquire
any Deposit Instrument for the Fund through a transaction in which the
Fund could not engage directly.
    6. The requested order will expire on the effective date of any
Commission rule under the Act that provides relief permitting the
operation of actively managed exchange-traded funds.

    For the Commission, by the Division of Investment Management,
under delegated authority.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-6865 Filed 3-21-12; 8:45 am]
BILLING CODE 8011-01-P