[Federal Register Volume 79, Number 106 (Tuesday, June 3, 2014)]
[Notices]
[Pages 32008-32009]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-12768]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-72265; File No. SR-NYSEArca-2013-127]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of
Designation of a Longer Period for Commission Action on a Proposed Rule
Change, as Modified by Amendments No. 1 and No. 2 Thereto, To List and
Trade Shares of Nine Series of the IndexIQ Active ETF Trust Under NYSE
Arca Equities Rule 8.600
May 28, 2014.
On November 18, 2013, NYSE Arca, Inc. (``Exchange'' or ``NYSE
Arca'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'' or ``Exchange Act'') \1\ and Rule 19b-4
thereunder,\2\ a proposed rule change to list and trade shares of the
IQ Long/Short Alpha ETF, IQ Bear U.S. Large Cap ETF, IQ Bear U.S. Small
Cap ETF, IQ Bear International ETF, IQ Bear Emerging Markets ETF, IQ
Bull U.S. Large Cap ETF, IQ Bull U.S. Small Cap ETF, IQ Bull
International ETF and IQ Bull Emerging Markets ETF (collectively,
``Funds''). On November 26, 2013, the Exchange filed Amendment No. 1 to
the proposed rule change.\3\ The proposed rule change, as modified by
Amendment No. 1, was published for comment in the Federal Register on
December 4, 2013.\4\
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ Amendment No. 1 clarifies (i) how certain holdings will be
valued for purposes of calculating a fund's net asset value, and
(ii) where investors will be able to obtain pricing information for
certain underlying holdings.
\4\ Securities Exchange Act Release No. 70954 (November 27,
2013), 78 FR 72955 (``Notice'').
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On January 15, 2014, pursuant to Section 19(b)(2) of the Act,\5\
the Commission designated a longer period within which to either
approve the proposed rule change, disapprove the proposed rule change,
or institute proceedings to determine whether to disapprove the
proposed rule change.\6\ On March 4, 2014, the Commission instituted
proceedings to determine whether to approve or disapprove the proposed
rule change.\7\ On April 11, 2014, the Exchange submitted Amendment No.
2 to the proposed rule change.\8\ The Commission received no comments
on the proposed rule change.
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\5\ 15 U.S.C. 78s(b)(2).
\6\ See Securities Exchange Act Release No. 71309, 79 FR 3657
(January 22, 2014). The Commission determined that it was
appropriate to designate a longer period within which to take action
on the proposed rule change so that it has sufficient time to
consider the proposed rule change. Accordingly, the Commission
designated March 4, 2014 as the date by which it should approve,
disapprove, or institute proceedings to determine whether to
disapprove the proposed rule change.
\7\ See Securities Exchange Act Release No. 71645, 79 FR 13349
(March 10, 2014).
\8\ In Amendment No. 2, the Exchange provided additional details
describing how the contents of the portfolio composition of the Fund
would be disclosed on a daily basis. Specifically, 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, such as the type of
swap); the identity of the security, commodity, index 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 applicable Fund's portfolio.
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Section 19(b)(2) of the Act \9\ provides that, after initiating
disapproval proceedings, the Commission shall issue an order approving
or disapproving the proposed rule change not later than 180 days after
the date of publication of notice of filing of the proposed rule
change. The Commission may extend the period for issuing an order
approving or disapproving the proposed rule change, however, by not
more than 60 days if the Commission determines that a longer period is
appropriate and publishes the reasons for such determination. The
proposed rule change was published for notice and comment in the
Federal Register on December 4, 2013. June 2, 2014 is 180 days from
that date, and August 1, 2014 is 240 days from that date.
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\9\ 15 U.S.C. 78s(b)(2).
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[[Page 32009]]
The Commission finds it appropriate to designate a longer period
within which to issue an order approving or disapproving the proposed
rule change so that it has sufficient time to consider this proposed
rule change. The proposed rule change would permit the listing and
trading of shares of the Funds, which intend to invest primarily in
exchange-traded funds (``ETFs''), swap agreements, options contracts
and futures contracts. Four of the Funds would use the leverage
inherent in swaps and other derivatives to give the funds 200% exposure
to their investments.
Accordingly, the Commission, pursuant to Section 19(b)(2) of the
Act,\10\ designates August 1, 2014 as the date by which the Commission
should either approve or disapprove the proposed rule change (File
Number SR-NYSEArca-2013-127), as modified by Amendments No. 1 and No. 2
thereto.
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\10\ Id.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(57).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-12768 Filed 6-2-14; 8:45 am]
BILLING CODE 8011-01-P