[Federal Register: August 20, 2007 (Volume 72, Number 160)]
[Notices]
[Page 46522]
[DOCID:fr20au07-103]

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SECURITIES AND EXCHANGE COMMISSION

Sunshine Act Meeting

    Notice is hereby given, pursuant to the provisions of the
Government in the Sunshine Act, Public Law 94-409, that the Securities
and Exchange Commission will hold the following meeting during the week
of August 20, 2007:

A closed meeting will be held on Thursday, August 23, 2007 at 2 p.m.

    Commissioners, Counsel to the Commissioners, the Secretary to the
Commission, and recording secretaries will attend the closed meeting.
Certain staff members who have an interest in the matters may also be
present.
    The General Counsel of the Commission, or his designee, has
certified that, in his opinion, one or more of the exemptions set forth
in 5 U.S.C. 552b(c)(3), (5), (7), (9)(B), and (10) and 17 CFR
200.402(a)(3), (5), (7), 9(ii) and (10), permit consideration of the
scheduled matters at the closed meeting.
    Chairman Cox, as duty officer, voted to consider the items listed
for the closed meeting in closed session.
    The subject matter of the closed meeting scheduled for Thursday,
August 23, 2007 will be:

Formal orders of investigations;
Institution and settlement of injunctive actions;
Institution and settlement of administrative proceedings of an
enforcement nature;
Resolution of litigation claims; and
Other matters related to enforcement proceedings.

    At times, changes in Commission priorities require alterations in
the scheduling of meeting items.
    For further information and to ascertain what, if any, matters have
been added, deleted or postponed, please contact:
    The Office of the Secretary at<PHONE_NUMBER>.

    Dated: August 15, 2007.
Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-16379 Filed 8-17-07; 8:45 am]

BILLING CODE 8010-01-P


[Federal Register: May 11, 2009 (Volume 74, Number 89)]
[Rules and Regulations]
[Page 21768]
[DOCID:fr11my09-2]

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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

21 CFR Parts 510 and 520

[Docket No. FDA-2009-N-0665]

New Animal Drugs; Carprofen

AGENCY:  Food and Drug Administration, HHS.

ACTION:  Final rule; technical amendment.

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SUMMARY:  The Food and Drug Administration (FDA) is amending the animal
drug regulations to reflect the original approval of an abbreviated new
animal drug application (ANADA) filed by Norbrook Laboratories, Ltd.
The ANADA provides for the veterinary prescription use of carprofen
caplets in dogs.

DATES:  This rule is effective May 11, 2009.

FOR FURTHER INFORMATION CONTACT:  John K. Harshman, Center for
Veterinary Medicine (HFV-104), Food and Drug Administration, 7500
Standish Pl., Rockville, MD 20855,<PHONE_NUMBER>, e-mail:
<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: Norbrook Laboratories, Ltd., Station Works,
Newry BT35 6JP, Northern Ireland, filed ANADA 200-498 that provides for
veterinary prescription use of NOROCARP (carprofen) Caplets in dogs for
the relief of pain and inflammation associated with osteoarthritis and
for the control of postoperative pain associated with soft tissue and
orthopedic surgeries. The ANADA is approved as of November 25, 2008,
and the regulations are amended in 21 CFR 520.309 to reflect the
approval.
    In addition, FDA has found that a sponsor of another generic
carprofen caplet product is not currently listed in the animal drug
regulations as a sponsor of an approved application. Accordingly, 21
CFR 510.600(c) is being amended to add entries for IMPAX Laboratories,
Inc.
    In accordance with the freedom of information provisions of 21 CFR
part 20 and 21 CFR 514.11(e)(2)(ii), a summary of safety and
effectiveness data and information submitted to support approval of
this application may be seen in the Division of Dockets Management
(HFA-305), Food and Drug Administration, 5630 Fishers Lane, rm. 1061,
Rockville, MD 20852, between 9 a.m. and 4 p.m., Monday through Friday.
    FDA has determined under 21 CFR 25.33 that this action is of a type
that does not individually or cumulatively have a significant effect on
the human environment. Therefore, neither an environmental assessment
nor an environmental impact statement is required.
    This rule does not meet the definition of ``rule'' in 5 U.S.C.
804(3)(A) because it is a rule of ``particular applicability.''
Therefore, it is not subject to the congressional review requirements
in 5 U.S.C. 801-808.

List of Subjects

21 CFR Part 510

    Administrative practice and procedure, Animal drugs, Labeling,
Reporting and recordkeeping requirements.

21 CFR Part 520

    Animal drugs.

0
Therefore, under the Federal Food, Drug, and Cosmetic Act and under
authority delegated to the Commissioner of Food and Drugs and
redelegated to the Center for Veterinary Medicine, 21 CFR parts 510 and
520 are amended as follows:

PART 510--NEW ANIMAL DRUGS

0
1. The authority citation for 21 CFR part 510 continues to read as
follows:

    Authority:  21 U.S.C. 321, 331, 351, 352, 353, 360b, 371, 379e.

0
2. In Sec.  510.600, in the table in paragraph (c)(1) alphabetically
add a new entry for ``IMPAX Laboratories, Inc.''; and in the table in
paragraph (c)(2) numerically add a new entry for ``000115'' to read as
follows:

Sec.  510.600   Names, addresses, and drug labeler codes of sponsors of
approved applications.

* * * * *
    (c) * * *
    (1) * * *

------------------------------------------------------------------------
            Firm name and address                  Drug labeler code
------------------------------------------------------------------------
                                * * * * *
IMPAX Laboratories, Inc., 30831 Huntwood      000115
 Ave., Hayward, CA 94544
                                * * * * *
------------------------------------------------------------------------

    (2) * * *

------------------------------------------------------------------------
     Drug labeler code                  Firm name and address
------------------------------------------------------------------------
                                * * * * *
000115                       IMPAX Laboratories, Inc., 30831 Huntwood
                              Ave., Hayward, CA 94544
                                * * * * *
------------------------------------------------------------------------

PART 520--ORAL DOSAGE FORM NEW ANIMAL DRUGS

0
3. The authority citation for 21 CFR part 520 continues to read as
follows:

    Authority:  21 U.S.C. 360b.

Sec.  520.309   [Amended]

0
4. In paragraph (b)(2) of Sec.  520.309, remove ``000115 and 062250''
and add in its place ``000115, 055529, and 062250''.

    Dated: May 6, 2009.
Bernadette Dunham,
Director, Center for Veterinary Medicine.
[FR Doc. E9-10925 Filed 5-8-09; 8:45 am]

BILLING CODE 4160-01-S


[Federal Register Volume 86, Number 202 (Friday, October 22, 2021)]
[Notices]
[Page 58648]
[FR Doc No: 2021-23114]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

Combined Notice of Filings

    Take notice that the Commission has received the following Natural
Gas Pipeline Rate and Refund Report filings:

Filings Instituting Proceedings

    Docket Numbers: RP22-50-000.
    Applicants: Natural Gas Pipeline Company of America LLC.
    Description: Sec.  4(d) Rate Filing: Negotiated Rate Agreement
Filing--BP Energy Company to be effective 11/1/2021.
    Filed Date: 10/15/21.
    Accession Number: 20211015-5061.
    Comment Date: 5 p.m. ET 10/27/21.

    Docket Numbers: RP22-51-000.
    Applicants: Natural Gas Pipeline Company of America LLC.
    Description: Sec.  4(d) Rate Filing: Negotiated Rate Agreement
Filing--Macquarie Energy LLC to be effective 11/1/2021.
    Filed Date: 10/15/21.
    Accession Number: 20211015-5062.
    Comment Date: 5 p.m. ET 10/27/21.

    Docket Numbers: RP22-52-000.
    Applicants: Double E Pipeline, LLC.
    Description: Sec.  4(d) Rate Filing: Double E Pipeline, LLC--
Negotiated Rate and Non-Conforming Agreements to be effective 11/15/
2021.
    Filed Date: 10/15/21.
    Accession Number: 20211015-5124.
    Comment Date: 5 p.m. ET 10/27/21.

    Docket Numbers: RP22-53-000.
    Applicants: Northwest Pipeline LLC.
    Description: Sec.  4(d) Rate Filing: 2021 Housekeeping Filing to be
effective 11/15/2021.
    Filed Date: 10/15/21.
    Accession Number: 20211015-5125.
    Comment Date: 5 p.m. ET 10/27/21.

    Docket Numbers: RP22-54-000.
    Applicants: Midcontinent Express Pipeline LLC.
    Description: Sec.  4(d) Rate Filing: NextEra FTS Negotiated Rate to
be effective 11/1/2021.
    Filed Date: 10/18/21.
    Accession Number: 20211018-5038.
    Comment Date: 5 p.m. ET 11/1/21.

    The filings are accessible in the Commission's eLibrary system
(https://elibrary.ferc.gov/idmws/search/fercgensearch.asp) by 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: October 18, 2021.
Debbie-Anne A. Reese,
Deputy Secretary.
[FR Doc. 2021-23114 Filed 10-21-21; 8:45 am]
BILLING CODE 6717-01-P


EPA REGISTRATION DIVISION COMPANY NOTICE OF FILING FOR PESTICIDE PETITIONS PUBLISHED IN THE FEDERAL REGISTER

EPA Registration Division contact:

Ingredion Incorporated

	EPA has received a pesticide petition IN-11715 from Ingredion Incorporated, 5 Westbrook Corporate Center, Westchester, IL 60154, United States requesting, pursuant to section 408(d) of the Federal Food, Drug, and Cosmetic Act (FFDCA), 21 U.S.C. 346a(d), to amend 40 CFR part 180

  to establish an exemption from the requirement of a tolerance for

      Amylopectin, 2-hydroxypropyl ether, acid-hydrolyzed (CASRN: 2756130-86-4) in or on raw agricultural commodities pre-harvest as a seed treatment (40 CFR 180.920).  EPA has determined that the petition contains data or information regarding the elements set forth in section 408 (d)(2) of FDDCA; however, EPA has not fully evaluated the sufficiency of the submitted data at this time or whether the data supports granting of the petition. Additional data may be needed before EPA rules on the petition.

A. Residue Chemistry

	1. Plant metabolism. NA Remove

	2. Analytical method. NA Remove

	3. Magnitude of residues. NA Remove

B. Toxicological Profile

Toxicity data are not available for Amylopectin, 2-hydroxypropyl ether, acid-hydrolyzed.  The data presented are from a re-evaluation of modified starches in food additives conducted by the European Food Safety Authority (EFSA) Panel on Food Additives and Nutrient Sources added to Food (EFSA, 2017).  2-Hydroxypropyl starch (CAS number 9049-76-7), a chemically similar starch, is one of the modified starches considered in this article.  Given the structural, physicochemical, and biological similarities, the EFSA panel concluded that it is possible to read-across between all the modified starches considered and relevant findings for all modified starches are therefore summarized.

 Acute toxicity.

      Acute Oral Toxicity

      LD50 values between 7 to 35 g/kg bw were observed in acute oral toxicity studies using distarch phosphate with mice, rats, guinea pigs, rabbits, and cats.  No histopathological abnormalities were observed in the livers and kidneys of guinea pigs, rabbits, and cats (Hodge, 1954, 1956; cited in EFSA, 2017).

      Based on these LD50 values, the modified starches discussed here would not present an acute oral toxicity hazard to humans when used as an inert ingredient in seed-applied pesticides.

	2. Genotoxicty. NA Remove

	3. Reproductive and developmental toxicity. NA Remove

	4. Subchronic toxicity

      Relevant toxicity data for all starches reviewed by the EFSA panel are summarized in Table 1 (EFSA, 2017).

Table 1	Summary of Short-Term and Subchronic Toxicity Data for Modified Starches
Modified Starch
Reference in EFSA, 2017
Animal
Dose
Result
Oxidised starch
Garton & Sons Co. Ltd., 1967
Rat
63,000 mg/kg bw per day for 10 weeks
No toxic effects.
Oxidised starch
Documentation provided to EFSA n. 20
Rat
450, 9,000, and 22,500 mg/kg bw per day for 90 days
No adverse effects.
Distarch phosphate
Documentation provided to EFSA n. 21
Rat
4,500, 13,500, and 40,500 mg/kg bw per day for 3 months
No treatment-related changes from control.
Distarch phosphate
Documentation provided to EFSA n. 22
Dog
50, 250, and 1,250 mg/kg bw per day for 90 days
No adverse effects.
Distarch phosphate
Anderson et al., 1973a
Pig
Diet containing 5.6% of the test substance for 25 days
No treatment-related changes from control.
Phosphated distarch phosphate
Documentation provided to EFSA n. 23
Rat
22,500 or 45,000 mg/kg bw per day for 8 weeks
No detectable adverse effects on body weight.
Phosphated distarch phosphate
Documentation provided to EFSA n. 22
Dog
50, 250 or 1,250 mg/kg bw per day for 90 days
No adverse effects.
Phosphated distarch phosphate
Anderson et al., 1973a
Pig
Diet containing 5.6% of the test substance for 25 days
No treatment-related changes from control.
Acetylated distarch phosphate
Documentation provided to EFSA n. 23
Rat
30,000 or 60,000 mg/kg bw per day for 7 days
Slight body weight reduction and mild diarrhoea occurred at the highest dietary level. No hair loss was noted.
Acetylated distarch phosphate
Documentation provided to EFSA n. 23
Rat
22,500 or 45,000 mg/kg bw per day for 8 weeks
Body weights of males at the highest dietary level were slightly decreased.
Acetylated distarch phosphate
Shillam et al., 1971
Pig
1,250, 2,500, or 6,250 mg/kg bw per day for 14 weeks
No effect on growth, food, consumption, haematology, or biochemistry was observed.
Acetylated distarch phosphate
Documentation provided to EFSA n. 26
Hamster
Diet containing 30% of the test substance for 30 days
Slightly lower daily intake was observed. No other treatment-related effects were observed.
Acetylated starch
Documentation provided to EFSA n. 23
Rat
30,000 or 60,000 mg/kg bw per day for 7 days
Slight body weight reduction and mild diarrhoea occurred at the highest dietary level. No hair loss was noted.
Acetylated starch
Documentation provided to EFSA n. 16
Rat
Diet containing 60% of the test substance for 28 days
For starches with more than 2% acetylation: weight gain was reduced, diarrohea occurred and there was noticeable caecal enlargement.
Acetylated starch
Documentation provided to EFSA n. 23
Rat
22,500 or 45,000 mg/kg bw per day for 8 weeks
No effects on growth or body weight. Caecal weight and caecal enlargement occurred in a dose-related manner.
Acetylated starch
Documentation provided to EFSA n. 27
Rat
4,500, 13,500, or 40,500 mg/kg bw per day for 13 weeks
Growth rates and haematological findings were not significantly affected. Caecal weights were slightly higher in treated animals than the control.
Acetylated distarch adipate
Documentation provided to EFSA n. 28
Rat
36,000 mg/kg bw per day for 30 days
No treatment-related effects other than enlargement of the caecum.
Acetylated distarch adipate
Documentation provided to EFSA n. 29
Rat
45,000 mg/kg bw per day for 90 days
Treated males showed a significantly reduced growth rate (20%). Relative weights of caeca were higher in both sexes of the test group compared with the control. Female rats on the test diet experienced alkaline urine.
Acetylated distarch adipate
Documentation provided to EFSA n. 26
Hamster
Diet containing 30% of the test substance for 30 days
Slightly lower daily intake was observed. No other treatment-related effects were observed.
Hydroxypropyl starch
Kay and Calandra, 1961
Rat
1,800, 4,500, 9,000, or 22,500 mg/kg bw per day for 90 days
No systemic toxicity noted. Slight reduction in growth rate and mild diarrhoea at the highest dietary level.
Hydroxypropyl starch
Documentation provided to EFSA n. 31
Rat
4,500, 13,500, or 40,500 mg/kg bw per day for 90 days
Caecal enlargement and moderate diarrhoea were observed at the highest dietary level.
Hydroxypropyl starch
Leegwater et al., 1974
Rat
9,000 or 36,000 mg/kg bw per day for 10 days  -  3 months
The severity of diarrhoea and relative caecal weights increased with increases in the dietary level of the test substance.
Hydroxypropyl distarch phosphate
Documentation provided to EFSA n. 32
Rat
30,000, 60,000, 90,000, or 120,000 mg/kg bw per day for 28 days
At the highest levels tested, growth and body weights were reduced compared to the control.
Hydroxypropyl distarch phosphate
Documentation provided to EFSA n. 33
Rat
4,500, 9,000 or 22,500 mg/kg bw per day for 90 days
Caecal weights were increased at the highest dietary level. Macroscopically, no compound-related differences were observed amongst the various groups.
Starch sodium octenyl succinate
Documentation provided to EFSA n. 34
Rat
Diet containing 35% of the test substance for 8 weeks
A slightly slower growth rate was observed I the test group.
Starch sodium octenyl succinate
Buttolph and Newberne, 1980
Rat
Diet containing 6%, 12%, or 30% of the test substance for 30-90 days
No significant effect on growth rate.
Starch sodium octenyl succinate
Unilever, 1984
Rat
37,000 mg/kg bw per day for 90 days
No adverse effects.
Acetylated oxidized starch
Documentation provided to EFSA n. 35
Rat
5,000, 15,000 or 25,000 mg/kg bw per day for 14 days
Caecal weights were increased at the two highest dietary levels.
Acetylated oxidized starch
Documentation provided to EFSA n. 35
Rat
3,000, 5,900, or 18,000 mg/kg bw per day for 90 days
The NOAEL level was determined to be 5,900 mg/kg bw per day, on the basis of microscopic changes in the kidney and urinary bladder epithelium
Starch aluminum octenyl succinate
FDRL, 1961
Rat
1.5 g or 3.0 g per day for 4 weeks
Weight gain, behavior and growth were comparable among test and control rats
Starch aluminum octenyl succinate
Documentation provided to EFSA n. 34
Rat
Diets containing 1% or 10% of the test substance for 8 weeks. The 1% diet was increased to 25% after the first 4 weeks.
Haematology (complete blood counts and blood sugar and nonprotein nitrogen) was similar between the treatment and the control group. No other treatment-related effects were observed.

      The most common results of the subchronic and short-term toxicity tests using these modified starches are an increase in caecal weight and mild to moderate diarrhoea.  Based on these results, the modified starches discussed here would not present a subchronic or short-term toxicity hazard to humans when used as an inert ingredient for seed-applied pesticides.

      The EFSA panel also concluded there is no safety concern for the use of modified starches as food additives and there is no need to assign a numerical acceptable daily intake (ADI) for these substances (EFSA, 2017).

	5. Chronic toxicity. NA Remove

	6. Animal metabolism. NA Remove

	7. Metabolite toxicology. NA Remove

	8. Endocrine disruption. NA Remove

C. Aggregate Exposure

	1. Dietary exposure. NA Remove

	i. Food. NA Remove

	ii. Drinking water. NA Remove

	2. Non-dietary exposure. NA Remove

D. Cumulative Effects

	NA Remove

E. Safety Determination

	1. U.S. population. NA Remove

 Infants and children. NA Remove

F. International Tolerances

	NA Remove


[Federal Register Volume 79, Number 139 (Monday, July 21, 2014)]
[Notices]
[Pages 42386-42391]
[FR Doc No: 2014-17034]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-72607; File No. SR-NASDAQ-2014-057]

Self-Regulatory Organizations; the NASDAQ Stock Market LLC; Order
Granting Approval of Proposed Rule Change Relating to the Listing and
Trading of the Shares of the First Trust Low Duration Mortgage
Opportunities ETF of First Trust Exchange-Traded Fund IV

July 15, 2014.

I. Introduction

    On May 20, 2014, The NASDAQ Stock Market LLC (``Nasdaq'' or the
``Exchange'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change to list and trade shares (``Shares'') of the First
Trust Low Duration Mortgage Opportunities ETF (``Fund'') of First Trust
Exchange-Traded Fund IV (``Trust'') under Nasdaq Rule 5735, which
governs the listing and trading of Managed Fund Shares on the Exchange.
The proposed rule change was published for comment in the Federal
Register on June 5, 2014.\3\ The Commission received no comments on the
proposed rule change. This order grants approval of the proposed rule
change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 72281 (May 30,
2014), 79 FR 32586 (``Notice'').
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II. Description of Proposed Rule Change

    The Exchange has made the following representations and statements
in describing the Fund and its investment strategies, including other
portfolio holdings and investment restrictions.\4\
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    \4\ The Commission notes that additional information regarding
the Trust, the Fund, and the Shares, including investment
strategies, risks, net asset value (``NAV'') calculation, creation
and redemption procedures, fees, Fund holdings disclosure policies,
distributions, and taxes, among other information, is included in
the Notice and the Registration Statement, as applicable. See Notice
and Registration Statement, supra note 3 and infra note 5,
respectively.
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General

    The Fund will be an actively-managed exchange-traded fund
(``ETF''). The Shares will be offered by the Trust, which was
established as a Massachusetts business trust on September 15, 2010.
The Trust is registered with the Commission as an investment company
and has filed a registration statement on Form N-1A (``Registration
Statement'') with the Commission.\5\ The Fund will be a series of the
Trust. First Trust Advisors L.P. will be the investment adviser
(``Adviser'') to the Fund.\6\ First Trust

Portfolios L.P. (``Distributor'') will be the principal underwriter and
distributor of the Fund's Shares. The Bank of New York Mellon
Corporation will act as the administrator, accounting agent, custodian,
and transfer agent to the Fund.\7\
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    \5\ See Post-Effective Amendment No. 69 to Registration
Statement on Form N-1A for the Trust, dated May 16, 2014 (File Nos.
333-174332 and 811-22559). The Exchange states that the Commission
has issued an order granting certain exemptive relief under the
Investment Company Act of 1940 (``1940 Act''). See Investment
Company Act Release No. 30029 (April 10, 2012) (File No. 812-13795)
(``Exemptive Relief''). In addition, the Exchange states that on
December 6, 2012, the staff of the Commission's Division of
Investment Management (``Division'') issued a no-action letter
(``No-Action Letter'') relating to the use of derivatives by
actively-managed ETFs. See No-Action Letter dated December 6, 2012
from Elizabeth G. Osterman, Associate Director, Office of Exemptive
Applications, Division. The Exchange states that the No-Action
Letter stated that the Division would not recommend enforcement
action to the Commission under applicable provisions of and rules
under the 1940 Act if actively-managed ETFs operating in reliance on
specified orders (which include the Exemptive Relief) invest in
options contracts, futures contracts, or swap agreements, provided
that they comply with certain representations stated in the No-
Action Letter.
    \6\ The Exchange states that the Adviser is not a broker-dealer,
but it is affiliated with the Distributor, a broker-dealer. The
Exchange states that the Adviser has implemented a fire wall with
respect to its broker-dealer affiliate regarding access to
information concerning the composition of or changes to the
portfolio, and that personnel who make decisions on the Fund's
portfolio composition will be subject to procedures designed to
prevent the use and dissemination of material non-public information
regarding the Fund's portfolio. The Exchange further states that, in
the event (a) the Adviser or any sub-adviser becomes, or becomes
newly affiliated with, a broker-dealer, or (b) any new adviser or
sub-adviser is a registered broker-dealer or becomes affiliated with
a broker-dealer, the adviser or sub-adviser, as applicable, will
implement a fire wall with respect to its relevant personnel or its
broker-dealer affiliate, as applicable, regarding access to
information concerning the composition of or changes to the
portfolio and will be subject to procedures designed to prevent the
use and dissemination of material non-public information regarding
the portfolio.
    \7\ The Exchange states that the Fund currently does not intend
to use a sub-adviser.
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Principal Investments

    The primary investment objective of the Fund will be to generate
current income, and its secondary objective will be capital
appreciation. Under normal market conditions,\8\ the Fund will seek to
achieve its investment objectives by investing at least 80% of its net
assets (including investment borrowings) in the mortgage-related debt
securities and other mortgage-related instruments (collectively,
``Mortgage-Related Investments'') described below.
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    \8\ The term ``under normal market conditions'' as used herein
includes, but is not limited to, the absence of adverse market,
economic, political, or other conditions, including extreme
volatility or trading halts in the fixed income markets or the
financial markets generally; operational issues causing
dissemination of inaccurate market information; or force majeure
type events such as systems failure, natural or man-made disaster,
act of God, armed conflict, act of terrorism, riot, labor
disruption, or any similar intervening circumstance.
---------------------------------------------------------------------------

    Under normal market conditions, the Fund will invest in Mortgage-
Related Investments tied to residential and commercial mortgages.\9\
Mortgage-Related Investments represent an interest in a pool of
mortgage loans made by banks and other financial institutions to
finance purchases of homes, commercial buildings, and other real
estate. The individual mortgage loans are packaged or ``pooled''
together for sale to investors. As the underlying mortgage loans are
paid off, investors receive principal and interest payments. Mortgage-
Related Investments may be fixed-rate instruments, or they may be
adjustable-rate instruments (``ARMS'').
---------------------------------------------------------------------------

    \9\ Mortgage-Related Investments consist of: (1) Residential
mortgage-backed securities (``RMBS''); (2) commercial mortgage-
backed securities (``CMBS''); (3) stripped mortgage-backed
securities (``SMBS''), which are mortgage-backed securities where
mortgage payments are divided between paying the loan's principal
and paying the loan's interest; and (4) collateralized mortgage
obligations (``CMOs'') and real estate mortgage investment conduits
(``REMICs''), which are mortgage-backed securities that are divided
into multiple classes, with each class being entitled to a different
share of the principal and interest payments received from the pool
of underlying assets.
---------------------------------------------------------------------------

    The Mortgage-Related Investments in which the Fund will invest may
be, but are not required to be, issued or guaranteed by the U.S.
government or by its agencies or instrumentalities, such as Ginnie Mae
and U.S. government-sponsored entities, such as Fannie Mae and Freddie
Mac (the U.S. government, its agencies and instrumentalities, and U.S.
government-sponsored entities are referred to collectively as
``Government Entities'').\10\ The Fund may invest in callable agency
securities, which give the issuer (the U.S. government agency) the
right to redeem the security prior to maturity. The Fund will limit its
investments in Mortgage-Related Investments that are not issued or
guaranteed by Government Entities to 20% of its net assets.\11\
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    \10\ Securities issued by Government Entities have different
levels of credit support. For example, Ginnie Mae securities carry a
guarantee as to the timely repayment of principal and interest that
is backed by the full faith and credit of the U.S. government.
However, the full faith and credit guarantee does not apply to the
market prices and yields of the Ginnie Mae securities or to the NAV,
trading price, or performance of the Fund, which will vary with
changes in interest rates and other market conditions. Fannie Mae
and Freddie Mac pass-through mortgage certificates are backed by the
credit of the respective instrumentality and are not guaranteed by
the U.S. government. Other securities issued by Government Entities
may only be backed by the creditworthiness of the issuing
institution, not the U.S. government, or the issuers may have the
right to borrow from the U.S. Treasury to meet their obligations.
    \11\ For the avoidance of doubt, Mortgage-Related Investments
that are not issued or guaranteed by Government Entities will be
included for purposes of the 80% requirement described in the first
paragraph under the heading ``Principal Investments.''
---------------------------------------------------------------------------

    Many Mortgage-Related Investments are pass-through securities,
which means they provide investors with monthly payments consisting of
a pro rata share of both regular interest and principal payments as
well as unscheduled prepayments on the underlying mortgage loans.
Because prepayment rates of individual mortgage pools vary widely, the
average life of a particular pool cannot be predicted accurately.
    The Fund currently targets an estimated effective duration \12\ of
three years or less. The Adviser will calculate the duration of the
portfolio by modeling the cash flows of all the individual holdings,
including the impact of prepayment variability and coupon adjustments,
where applicable, to determine the duration of each holding and then
aggregating based on the size of the position. In performing this
duration calculation, the Adviser will utilize third-party models.
---------------------------------------------------------------------------

    \12\ In comparison to maturity (which is the date on which a
debt instrument ceases and the issuer is obligated to repay the
principal amount), duration is a measure of the expected price
volatility of a debt instrument as a result of changes in market
rates of interest, based on the weighted average timing of the
instrument's expected principal and interest payments and other
factors. Duration differs from maturity in that it considers a
security's yield, coupon payments, principal payments, call
features, and coupon adjustments in addition to the amount of time
until the security finally matures. As the value of a security
changes over time, so will its duration. Prices of securities with
lower durations tend to be less sensitive to interest rate changes
than securities with higher durations. In general, a portfolio of
securities with a lower duration can be expected to be less
sensitive to interest rate changes than a portfolio with a higher
duration.
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    The Fund may invest, without limitation, in mortgage dollar
rolls.\13\ The Fund intends to enter into mortgage dollar rolls only
with high quality securities dealers and banks, as determined by the
Adviser. The Fund may also invest in to-be-announced transactions
(``TBA Transactions'').\14\ Further, the Fund may enter into short
sales as part of its overall portfolio management strategies or to
offset a potential decline in the value of a security; however, the
Fund does not expect, under normal market conditions, to engage in
short sales with respect to more than 30% of the value of its net
assets. To the extent required under applicable federal securities
laws, rules, and interpretations thereof, the Fund will set aside
liquid assets or engage in other measures to cover open positions and
short positions held in connection with the foregoing types of
transactions.
---------------------------------------------------------------------------

    \13\ In a mortgage dollar roll, the Fund will sell (or buy)
mortgage-backed securities for delivery on a specified date and
simultaneously contract to repurchase (or sell) substantially
similar (same type, coupon, and maturity) securities on a future
date. During the period between a sale and repurchase, the Fund will
forgo principal and interest paid on the mortgage-backed securities.
The Fund will earn or lose money on a mortgage dollar roll from any
difference between the sale price and the future purchase price. In
a sale and repurchase, the Fund will also earn money on the interest
earned on the cash proceeds of the initial sale.
    \14\ A TBA Transaction is a method of trading mortgage-backed
securities. TBA Transactions generally are conducted in accordance
with widely-accepted guidelines that establish commonly observed
terms and conditions for execution, settlement, and delivery. In a
TBA Transaction, the buyer and the seller agree on general trade
parameters such as agency, settlement date, par amount, and price.
The actual pools delivered generally are determined two days prior
to the settlement date. The mortgage TBA market is liquid, and
positions can be easily added, rolled, or closed. According to the
Financial Industry Regulatory Authority (``FINRA'') Trade Reporting
and Compliance Engine (``TRACE'') data, TBA Transactions represented
approximately 93% of total trading volume for agency mortgage-backed
securities in the month of January 2014.
---------------------------------------------------------------------------

    Although the Fund intends to invest primarily in investment grade
securities,\15\ the Fund may invest up to

20% of its net assets in securities of any credit quality, including
securities that are below investment grade and securities that are
unrated and have not been judged by the Adviser to be of comparable
quality to rated investment grade securities.
---------------------------------------------------------------------------

    \15\ Investment grade securities include securities with, at the
time of investment, credit ratings within the four highest rating
categories of a nationally recognized statistical rating
organization such as Moody's Investors Service, Inc. (``Moody's''),
Fitch Ratings (``Fitch''), Standard & Poor's Ratings Services, a
division of The McGraw-Hill Companies, Inc. (``S&P Ratings''), or
another nationally recognized statistical rating organization
(``NRSRO''), and unrated securities judged to be of comparable
quality by the Adviser. Comparable quality of unrated securities
will be determined by the Adviser based on fundamental credit
analysis of the unrated security and comparable NRSRO-rated
securities. On a best-efforts basis, the Adviser will attempt to
make a rating determination based on publicly available data. In
making a ``comparable quality'' determination, the Adviser may
consider, for example, whether the issuer of the security has issued
other rated securities, the nature and provisions of the relevant
security, whether the obligations under the relevant security are
guaranteed by another entity and the rating of such guarantor (if
any), relevant cash flows, macroeconomic analysis, and sector or
industry analysis.
---------------------------------------------------------------------------

Other Investments

    The Fund may invest in exchange-listed options on U.S. Treasury
securities, exchange-listed options on U.S. Treasury futures contracts,
and exchange-listed U.S. Treasury futures contracts.\16\ The use of
these derivative transactions may allow the Fund to obtain net long or
short exposures to selected interest rates or durations. These
derivatives may also be used to hedge risks associated with the Fund's
other portfolio investments.
---------------------------------------------------------------------------

    \16\ At least 90% of the Fund's net assets that are invested in
exchange-traded equity securities and exchange-traded derivatives
(in the aggregate) will be invested in investments that trade in
markets that are members of the Intermarket Surveillance Group
(``ISG'') or are parties to a comprehensive surveillance sharing
agreement with the Exchange.
---------------------------------------------------------------------------

    Under normal market conditions, no more than 20% of the value of
the Fund's net assets will be invested in derivative instruments.\17\
The Fund's investments in derivative instruments will be consistent
with the Fund's investment objectives and the 1940 Act and will not be
used to seek to achieve a multiple or inverse multiple of an index.
---------------------------------------------------------------------------

    \17\ The Fund will limit its direct investments in futures and
options on futures to the extent necessary for the Adviser to claim
the exclusion from regulation as a ``commodity pool operator'' with
respect to the Fund under Rule 4.5 promulgated by the Commodity
Futures Trading Commission (``CFTC''), as such rule may be amended
from time to time. Under Rule 4.5 as currently in effect, the Fund
will limit its trading activity in futures and options on futures
(excluding activity for ``bona fide hedging purposes,'' as defined
by the CFTC) such that it will meet one of the following tests: (i)
Aggregate initial margin and premiums required to establish its
futures and options on futures positions will not exceed 5% of the
liquidation value of the Fund's portfolio, after taking into account
unrealized profits and losses on such positions; or (ii) aggregate
net notional value of its futures and options on futures positions
will not exceed 100% of the liquidation value of the Fund's
portfolio, after taking into account unrealized profits and losses
on such positions.
---------------------------------------------------------------------------

    The Fund may invest up to 20% of its net assets in short-term debt
securities, money market funds, and other cash equivalents, or it may
hold cash. The percentage of the Fund invested in such holdings will
vary and will depend on several factors, including market conditions.
For temporary defensive purposes, during the initial invest-up period
and during periods of high cash inflows or outflows, the Fund may
depart from its principal investment strategies and invest part or all
of its assets in these securities or it may hold cash. During such
periods, the Fund may not be able to achieve its investment objectives.
The Fund may adopt a defensive strategy when the Adviser believes that
securities in which the Fund normally invests have elevated risks due
to political or economic factors and in other extraordinary
circumstances.
    Short-term debt securities are securities from issuers having a
long-term debt rating of at least A by S&P Ratings, Moody's, or Fitch
and having a maturity of one year or less. The use of temporary
investments will not be a part of a principal investment strategy of
the Fund.
    Short-term debt securities are defined to include, without
limitation, the following: (1) Fixed rate and floating rate U.S.
government securities, including bills, notes, and bonds differing as
to maturity and rates of interest, which are either issued or
guaranteed by the U.S. Treasury or by U.S. government agencies or
instrumentalities; (2) certificates of deposit issued against funds
deposited in a bank or a savings and loan association; (3) bankers'
acceptances, which are short-term credit instruments used to finance
commercial transactions; (4) repurchase agreements,\18\ which involve
purchases of debt securities; (5) 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; and (6) commercial
paper, which is short-term unsecured promissory notes. The Fund may
only invest in commercial paper rated A-1 or higher by S&P Ratings,
Prime-1 or higher by Moody's, or F1 or higher by Fitch.
---------------------------------------------------------------------------

    \18\ The Fund intends to enter into repurchase agreements only
with financial institutions and dealers believed by the Adviser to
present minimal credit risks in accordance with criteria approved by
the Board of Trustees of the Trust (``Trust Board''). The Adviser
will review and monitor the creditworthiness of such institutions.
The Adviser will monitor the value of the collateral at the time the
transaction is entered into and at all times during the term of the
repurchase agreement.
---------------------------------------------------------------------------

    In addition to its investments in Mortgage-Related Investments
issued or guaranteed by Government Entities (as described in Principal
Investments above) and in the short-term debt securities described in
clause (1) of the preceding paragraph, the Fund may also invest up to
20% of its net assets in other direct obligations of the U.S.
government and in other securities issued or guaranteed by Government
Entities. Such investments may include, without limitation, U.S.
government inflation-indexed securities.\19\
---------------------------------------------------------------------------

    \19\ Inflation-indexed securities are fixed-income securities
that are structured to provide protection against inflation. The
value of the security's principal or the interest income paid on the
security is adjusted to track changes in an official inflation
measure. The U.S. Treasury uses the Consumer Price Index for Urban
Consumers as the inflation measure.
---------------------------------------------------------------------------

    The Fund may invest up to 20% of its net assets in the securities
of other investment companies, including money market funds (as noted
above) and other ETFs.\20\
---------------------------------------------------------------------------

    \20\ An ETF is an investment company registered under the 1940
Act that holds a portfolio of securities. Many ETFs are designed to
track the performance of a securities index, including industry,
sector, country, and region indexes. ETFs included in the Fund will
be listed and traded in the U.S. on registered exchanges. The Fund
may invest in the securities of ETFs in excess of the limits imposed
under the 1940 Act pursuant to exemptive orders obtained by other
ETFs and their sponsors from the Commission. In addition, the Fund
may invest in the securities of certain other investment companies
in excess of the limits imposed under the 1940 Act pursuant to an
exemptive order that the Trust has obtained from the Commission. The
ETFs in which the Fund may invest include Index Fund Shares (as
described in Nasdaq Rule 5705), Portfolio Depository Receipts (as
described in Nasdaq Rule 5705), and Managed Fund Shares (as
described in Nasdaq Rule 5735). While the Fund may invest in inverse
ETFs, the Fund will not invest in leveraged or inverse leveraged
(e.g., 2X or -3X) ETFs.
---------------------------------------------------------------------------

    The Fund may hold up to an aggregate amount of 15% of its net
assets in illiquid assets (calculated at the time of investment),
including securities deemed illiquid by the Adviser.\21\ The Fund will
monitor its portfolio liquidity on an ongoing basis to determine
whether, in light of current circumstances, an adequate level of
liquidity is being maintained and will consider taking appropriate
steps in

order to maintain adequate liquidity if, through a change in values,
net assets, or other circumstances, more than 15% of the Fund's net
assets are held in illiquid assets. Illiquid assets include securities
subject to contractual or other restrictions on resale and other
instruments that lack readily available markets as determined in
accordance with Commission staff guidance.
---------------------------------------------------------------------------

    \21\ In reaching liquidity decisions, the Adviser may consider
the following factors: the frequency of trades and quotes for the
security; the number of dealers wishing to purchase or sell the
security and the number of other potential purchasers; dealer
undertakings to make a market in the security; and the nature of the
security and the nature of the marketplace in which it trades (e.g.,
the time needed to dispose of the security, the method of soliciting
offers, and the mechanics of transfer).
---------------------------------------------------------------------------

    The Fund may not invest 25% or more of the value of its total
assets in securities of issuers in any one industry. This restriction
does not apply to obligations issued or guaranteed by the U.S.
government, or by its agencies or instrumentalities, or to securities
of other investment companies.
    The Fund intends to qualify each year as a regulated investment
company under Subchapter M of the Internal Revenue Code of 1986, as
amended.

III. Discussion and Commission's Findings

    After careful review, the Commission finds that the proposed rule
change is consistent with the requirements of Section 6 of the Act \22\
and the rules and regulations thereunder applicable to a national
securities exchange.\23\ In particular, the Commission finds that the
proposal is consistent with Section 6(b)(5) of the Act,\24\ which
requires, among other things, that the Exchange's rules be designed to
promote just and equitable principles of trade, to remove impediments
to and perfect the mechanism of a free and open market and a national
market system, and, in general, to protect investors and the public
interest. The Commission notes that the Fund and the Shares must comply
with the initial and continued listing criteria in Nasdaq Rule 5735 for
the Shares to be listed and traded on the Exchange.
---------------------------------------------------------------------------

    \22\ 15 U.S.C. 78f.
    \23\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
    \24\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Commission finds that the proposal to list and trade the Shares
on the Exchange is consistent with Section 11A(a)(1)(C)(iii) of the
Act,\25\ which sets forth Congress' finding that it is in the public
interest and appropriate for the protection of investors and the
maintenance of fair and orderly markets to assure the availability to
brokers, dealers, and investors of information with respect to
quotations for, and transactions in, securities. Quotation and last
sale information for the Shares will be available via Nasdaq
proprietary quote and trade services, as well as in accordance with the
Unlisted Trading Privileges and the Consolidated Tape Association
(``CTA'') plans for the Shares. In addition, the Intraday Indicative
Value,\26\ as defined in Nasdaq Rule 5735(c)(3), available on the
NASDAQ OMX Information LLC proprietary index data service, will be
widely disseminated by one or more major market data vendors and
broadly displayed at least every 15 seconds during the Regular Market
Session.\27\ On each business day, before commencement of trading in
Shares in the Regular Market Session \28\ on the Exchange, the Fund
will disclose on its Web site the identities and quantities of the
portfolio of securities and other assets (the ``Disclosed Portfolio''
as defined in Nasdaq Rule 5735(c)(2)) held by the Fund that will form
the basis for the Fund's calculation of NAV at the end of the business
day.\29\ The Fund's custodian, through the National Securities Clearing
Corporation (``NSCC''), will make available on each business day, prior
to the opening of business of the Exchange, the list of the names and
quantities of the instruments, as well as amount of cash (if any),
constituting the creation basket for that day. The NAV of the Fund will
be determined as of the close of trading (normally 4:00 p.m., Eastern
Time) on each day the New York Stock Exchange is open for business.\30\
Information regarding market price and trading volume of the Shares
will be continually available on a real-time basis throughout the day
on brokers' computer screens and other electronic services. Information
regarding the previous day's closing price and trading volume
information for the Shares will be published daily in the financial
section of newspapers. Intraday executable price information for fixed
income securities, exchange-traded equity securities, and derivatives
held by the Fund will be available from major broker-dealer firms and
major market data vendors. Additionally, FINRA's TRACE will be a source
of price information for certain of the Mortgage-Related Investments
held by the Fund. For exchange-traded assets, intraday price
information will be available directly from the applicable listing
exchanges. Intraday price information will also generally be available
through subscription services, which can be accessed by authorized
participants and other investors. Registered open-end management
investment companies (other than ETFs) are generally priced once each
business day, and these prices are available through the applicable
fund's Web site or major market data vendors. The Fund's Web site will
include a form of the prospectus for the Fund and additional data
relating to NAV and other applicable quantitative information.
---------------------------------------------------------------------------

    \25\ 15 U.S.C. 78k-1(a)(1)(C)(iii).
    \26\ According to the Exchange, the Intraday Indicative Value
reflects an estimated intraday value of the Fund's Disclosed
Portfolio. The Intraday Indicative Value will be based upon the
current value for the components of the Disclosed Portfolio. The
Intraday Indicative Value will be based on quotes and closing prices
from the securities' local market and may not reflect events that
occur subsequent to the local market's close. Premiums and discounts
between the Intraday Indicative Value and the market price may
occur. The Intraday Indicative Value should not be viewed as a
``real time'' update of the NAV per Share of the Fund, which is
calculated only once a day.
    \27\ Currently, the NASDAQ OMX Global Index Data Service
(``GIDS'') is the NASDAQ OMX global index data feed service. The
Exchange represents that GIDS offers real-time updates, daily
summary messages, and access to widely followed indexes and Intraday
Indicative Values for ETFs and that GIDS provides investment
professionals with the daily information needed to track or trade
NASDAQ OMX indexes, listed ETFs, or third-party partner indexes and
ETFs.
    \28\ See Nasdaq Rule 4120(b)(4) (describing the three trading
sessions on the Exchange: (1) Pre-Market Session from 4 a.m. to 9:30
a.m., Eastern Time; (2) Regular Market Session from 9:30 a.m. to
4:00 p.m. or 4:15 p.m., Eastern Time; and (3) Post-Market Session
from 4:00 p.m. or 4:15 p.m. to 8:00 p.m., Eastern Time).
    \29\ The Fund's disclosure of derivative positions in the
Disclosed Portfolio will include information that market
participants can use to value these positions intraday. On a daily
basis, the Fund will disclose on the Fund's Web site the following
information regarding each portfolio holding, as applicable to the
type of holding: Ticker symbol, CUSIP number or other identifier, if
any; a description of the holding (including the type of holding);
the identity of the security or other asset or instrument underlying
the holding, if any; for options, the option strike price; quantity
held (as measured by, for example, par value, notional value or
number of shares, contracts or units); maturity date, if any; coupon
rate, if any; effective date, if any; market value of the holding;
and the percentage weighting of the holding in the Fund's portfolio.
    \30\ NAV will be calculated for the Fund by taking the market
price of the Fund's total assets, including interest or dividends
accrued but not yet collected, less all liabilities, and dividing
this amount by the total number of Shares outstanding.
---------------------------------------------------------------------------

    The Commission further believes that the proposal to list and trade
the Shares is reasonably designed to promote fair disclosure of
information that may be necessary to price the Shares appropriately and
to prevent trading when a reasonable degree of transparency cannot be
assured. 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. Trading in Shares of the Fund will be
halted under the conditions specified in Nasdaq Rules 4120 and 4121,
including the trading pause provisions under

Nasdaq Rules 4120(a)(11) and (12). Trading in the Shares may be halted
because of market conditions or for reasons that, in the view of the
Exchange, make trading in the Shares inadvisable,\31\ and trading in
the Shares will be subject to Nasdaq Rule 5735(d)(2)(D), which sets
forth circumstances under which trading in Shares of the Fund may be
halted. The Exchange states that it has a general policy prohibiting
the distribution of material, non-public information by its employees.
Further, the Commission notes that the Reporting Authority that
provides the Disclosed Portfolio must implement and maintain, or be
subject to, procedures designed to prevent the use and dissemination of
material, non-public information regarding the actual components of the
portfolio.\32\ In addition, the Exchange states that the Adviser is not
a broker-dealer, but it is affiliated with a broker-dealer and has
implemented a fire wall with respect to its broker-dealer affiliate
regarding access to information concerning the composition or for
changes to the portfolio, and personnel who make decisions on the
Fund's portfolio composition will be subject to procedures designed to
prevent the use and dissemination of material non-public information
regarding the Fund's portfolio.\33\ The Exchange represents that
trading in the Shares will be subject to the existing trading
surveillances, administered by both Nasdaq and also FINRA on behalf of
the Exchange, which are designed to detect violations of Exchange rules
and applicable federal securities laws.\34\ The Exchange further
represents that these procedures are adequate to properly monitor
Exchange trading of the Shares in all trading sessions and to deter and
detect violations of Exchange rules and applicable federal securities
laws. Moreover, prior to the commencement of trading, the Exchange
states that it will inform its members in an Information Circular of
the special characteristics and risks associated with trading the
Shares.
---------------------------------------------------------------------------

    \31\ These reasons may include: (1) The extent to which trading
is not occurring in the securities and/or the other assets
constituting the Disclosed Portfolio of the Fund; or (2) whether
other unusual conditions or circumstances detrimental to the
maintenance of a fair and orderly market are present. With respect
to trading halts, the Exchange may consider all relevant factors in
exercising its discretion to halt or suspend trading in the Shares
of the Fund.
    \32\ See Nasdaq Rule 5735(d)(2)(B)(ii).
    \33\ See supra note 6. The Exchange states that an investment
adviser to an open-end fund is required to be registered under the
Investment Advisers Act of 1940 (``Advisers Act''). As a result, the
Adviser and 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.
    \34\ The Exchange states that FINRA surveils trading on the
Exchange pursuant to a regulatory services agreement and that the
Exchange is responsible for FINRA's performance under this
regulatory services agreement.
---------------------------------------------------------------------------

    The Exchange represents that the Shares are deemed to be equity
securities, thus rendering trading in the Shares subject to the
Exchange's existing rules governing the trading of equity securities.
In support of this proposal, the Exchange has made representations,
including the following:
    (1) The Shares will be subject to Rule 5735, which sets forth the
initial and continued listing criteria applicable to Managed Fund
Shares.
    (2) The Exchange has appropriate rules to facilitate transactions
in the Shares during all trading sessions.
    (3) FINRA, on behalf of the Exchange, will communicate as needed
regarding trading in the Shares and the other exchange-traded assets
with other markets and other entities that are members of ISG,\35\ and
FINRA may obtain trading information regarding trading in the Shares
and the other exchange-traded assets from such markets and other
entities. In addition, the Exchange may obtain information regarding
trading in the Shares and the other exchange-traded assets from markets
and other entities that are members of ISG, which includes securities
and futures exchanges, or with which the Exchange has in place a
comprehensive surveillance sharing agreement. Moreover, FINRA, on
behalf of the Exchange, will be able to access, as needed, trade
information for certain fixed income securities held by the Fund
reported to FINRA's TRACE.
---------------------------------------------------------------------------

    \35\ For a list of the current members of ISG, see
www.isgportal.org. The Exchange notes that not all components of the
Disclosed Portfolio may trade on markets that are members of ISG or
with which the Exchange has in place a comprehensive surveillance
sharing agreement.
---------------------------------------------------------------------------

    (4) Prior to the commencement of trading, the Exchange will inform
its members in an Information Circular of the special characteristics
and risks associated with trading the Shares. Specifically, the
Information Circular will discuss the following: (a) The procedures for
purchases and redemptions of Shares in creation units (and that Shares
are not individually redeemable); (b) Nasdaq Rule 2111A, which imposes
suitability obligations on Nasdaq members with respect to recommending
transactions in the Shares to customers; (c) how information regarding
the Intraday Indicative Value is disseminated; (d) the risks involved
in trading the Shares during the Pre-Market and Post-Market Sessions
when an updated Intraday Indicative Value will not be calculated or
publicly disseminated; (e) the requirement that members deliver a
prospectus to investors purchasing newly issued Shares prior to or
concurrently with the confirmation of a transaction; and (f) trading
information.
    (5) For initial and continued listing, the Fund must be in
compliance with Rule 10A-3 under the Act.\36\
---------------------------------------------------------------------------

    \36\ See 17 CFR 240.10A-3.
---------------------------------------------------------------------------

    (6) At least 90% of the Fund's net assets that are invested in
exchange-traded equity securities and exchange-traded derivatives (in
the aggregate) will be invested in investments that trade in markets
that are members of ISG or are parties to a comprehensive surveillance
sharing agreement with the Exchange.
    (7) The Fund may hold up to an aggregate amount of 15% of its net
assets in illiquid securities (calculated at the time of investment),
including securities deemed illiquid by the Adviser. The Fund will
monitor its portfolio liquidity on an ongoing basis to determine
whether, in light of current circumstances, an adequate level of
liquidity is being maintained, and will consider taking appropriate
steps in order to maintain adequate liquidity if, through a change in
values, net assets, or other circumstances, more than 15% of the Fund's
net assets are held in illiquid assets.
    (8) Under normal market conditions, the Fund will seek to achieve
its investment objectives by investing at least 80% of its net assets
(including investment borrowings) in Mortgage-Related Investments. The
Fund will limit its investments in Mortgage-Related Investments that
are not issued or guaranteed by Government Entities to 20% of its net
assets.
    (9) Under normal market conditions, no more than 20% of the value
of the Fund's net assets will be invested in

derivative instruments. The Fund's investments in derivative
instruments will be consistent with the Fund's investment objectives
and the 1940 Act and will not be used to seek to achieve a multiple or
inverse multiple of an index.
    (10) The Fund intends to invest primarily in investment grade
securities and will limit investments in securities of any credit
quality, including securities that are below investment grade and
securities that are unrated and have not been judged by the Adviser to
be of comparable quality to rated investment grade securities, to 20%
of its net assets.
    (11) A minimum of 100,000 Shares will be outstanding at the
commencement of trading on the Exchange.
    This approval order is based on all of the Exchange's
representations, including those set forth above and in the Notice, and
the Exchange's description of the Fund.
    For the foregoing reasons, the Commission finds that the proposed
rule change is consistent with Section 6(b)(5) of the Act \37\ and the
rules and regulations thereunder applicable to a national securities
exchange.
---------------------------------------------------------------------------

    \37\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\38\ that the proposed rule change (SR-NASDAQ-2014-057) be, and it
hereby is, approved.
---------------------------------------------------------------------------

    \38\ 15 U.S.C. 78s(b)(2).
    \39\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\39\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-17034 Filed 7-18-14; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register: July 30, 2009 (Volume 74, Number 145)]
[Notices]
[Page 38082]
[DOCID:fr30jy09-116]

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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

[Docket No. NHTSA-2009-0114; Notice 1]

Bentley Motors, Inc., Receipt of Petition for Decision of
Inconsequential Noncompliance

    Bentley Motors, Inc. (Bentley) has determined that certain
passenger car headlamps manufactured for the 2005-2008 Bentley Arnage
and Azure passenger cars do not fully comply with paragraph 49 CFR
571.108, Federal Motor Vehicle Safety Standard (FMVSS) No. 108 Lamps,
Reflective Devices and Associated Equipment. Bentley has filed an
appropriate report pursuant to 49 CFR part 573, Defect and
Noncompliance Responsibility and Reports.
    Pursuant to 49 U.S.C. 30118(d) and 30120(h) (see implementing rule
at 49 CFR part 556), Bentley has petitioned for an exemption from the
notification and remedy requirements of 49 U.S.C. Chapter 301 on the
basis that this noncompliance is inconsequential to motor vehicle
safety.
    This notice of receipt of Bentley's petition is published under 49
U.S.C. 30118 and 30120 and does not represent any agency decision or
other exercise of judgment concerning the merits of the petition.
    Bentley estimated that 1,115 model year 2005-2008 Bentley Arnage
and Azure passenger cars manufactured between January 13, 2004 and
November 9, 2007 are involved. Bentley also stated that based on its
preliminary investigation it believes that only 50% of those vehicles
have the subject noncompliance.
    Paragraphs S<IP_ADDRESS>(b) of FMVSS No. 108 require in pertinent part:

    S<IP_ADDRESS> Visual/optical aiming. Each visually/optically aimable
headlamp shall be designed to conform to the following requirements:
* * *
    (b) Horizontal aim, lower beam. There shall be no adjustment of
horizontal aim unless the headlamp is equipped with a horizontal
VHAD. If the headlamp has a VHAD, it shall be set to zero.

    Bentley explained that the noncompliance with FMVSS No. 108 is that
horizontal aim adjustment of the subject lower beams is possible due to
the absence of a blanking cap over the lower beam horizontal adjustment
screw.
    Bentley also stated that it discovered this noncompliance as a
result of a special production line quality audit investigation.
    Bentley further states that it believes that this noncompliance is
inconsequential to motor vehicle safety for three reasons. First, the
adjustment screw is always hidden by an engine cover when the vehicle's
hood is open. Second, when the engine cover is removed the screw is
still hidden down a small dark guide hole, so the screw is not
immediately visible and it is not immediately obvious that a disabling
cap is not present. Last, the workshop manual clearly identifies that
this screw is not functional on North American specification vehicles
so no vehicle repairer would ever need to try to search for and adjust
the screw in question.
    Bentley also has informed NHTSA that it has corrected the problem
that caused this noncompliance.
    In summation, Bentley states that it believes that the
noncompliance is inconsequential to motor vehicle safety and that no
corrective action is warranted.
    NHTSA notes that the statutory provisions (49 U.S.C. 30118(d) and
30120(h)) that permit manufacturers to file petitions for a
determination of inconsequentiality allow NHTSA to exempt manufacturers
only from the duties found in sections 30118 and 30120, respectively,
to notify owners, purchasers, and dealers of a defect or noncompliance
and to remedy the defect or noncompliance.
    Interested persons are invited to submit written data, views, and
arguments on this petition. Comments must refer to the docket and
notice number cited at the beginning of this notice and be submitted by
any of the following methods:
    a. By mail addressed to: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue, SE., Washington, DC 20590.
    b. By hand delivery to: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue, SE., Washington, DC 20590. The Docket Section is open on
weekdays from 10 am to 5 pm except Federal Holidays.
    c. Electronically: by logging onto the Federal Docket Management
System (FDMS) Web site at http://www.regulations.gov/. Follow the
online instructions for submitting comments. Comments may also be faxed
to 1-202-493-2251.
    Comments must be written in the English language, and be no greater
than 15 pages in length, although there is no limit to the length of
necessary attachments to the comments. If comments are submitted in
hard copy form, please ensure that two copies are provided. If you wish
to receive confirmation that your comments were received, please
enclose a stamped, self-addressed postcard with the comments. Note that
all comments received will be posted without change to http://
www.regulations.gov, including any personal information provided.
    Anyone is able to search the electronic form of all comments
received into any of our dockets by the name of the individual
submitting the comment (or signing the comment, if submitted on behalf
of an association, business, labor union, etc.). DOT's complete Privacy
Act Statement in the Federal Register published on April 11, 2000 (65
FR 19477-78).
    You may view documents submitted to a docket at the address and
times given above. You may also view the documents on the Internet at
http://www.regulations.gov by following the online instructions for
accessing the dockets available at that Web site.
    The petition, supporting materials, and all comments received
before the close of business on the closing date indicated below will
be filed and will be considered. All comments and supporting materials
received after the closing date will also be filed and will be
considered to the extent possible. When the petition is granted or
denied, notice of the decision will be published in the Federal
Register pursuant to the authority indicated below.
    Comment closing date: August 31, 2009.

    Authority: 49 U.S.C. 30118, 30120: delegations of authority at
CFR 1.50 and 501.8.

    Issued on: July 23, 2009.
Claude H. Harris,
Director, Office of Vehicle Safety Compliance.
[FR Doc. E9-18145 Filed 7-29-09; 8:45 am]

BILLING CODE 4910-59-P


[Federal Register Volume 79, Number 19 (Wednesday, January 29, 2014)]
[Notices]
[Page 4688]
[FR Doc No: 2014-01652]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

Notice Of Commissioner and Staff Attendance at North American
Electric Reliability Corporation Meetings

    The Federal Energy Regulatory Commission hereby gives notice that
members of the Commission and/or Commission staff may attend the
following meetings:

North American Electric Reliability Corporation
Member Representatives Committee and Board of Trustees Meetings
Board of Trustees Corporate Governance and Human Resources Committee,
Compliance Committee, and Standards Oversight and Technology Committee
Meetings
    The Arizona Grand Resort, 8000 S. Arizona Grand Parkway, Phoenix,
Arizona 85004

February 5 (7:00 a.m.-5:30 p.m.) and February 6 (8:30 a.m.-12:00 p.m.),
2014

    Further information regarding these meetings may be found at:
http://www.nerc.com/Pages/Calendar.aspx.
    The discussions at the meetings, which are open to the public, may
address matters at issue in the following Commission proceedings:

Docket No. RR13-9, North American Electric Reliability Corporation
Docket No. RD14-2, North American Electric Reliability Corporation

    For further information, please contact Jonathan First, 202-502-
8529, or<EMAIL_ADDRESS>
    Dated: January 22, 2014.
Kimberly D. Bose,
Secretary.
[FR Doc. 2014-01652 Filed 1-28-14; 8:45 am]
BILLING CODE 6717-01-P