[Federal Register Volume 79, Number 209 (Wednesday, October 29, 2014)]
[Notices]
[Page 64430]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-25673]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-73417; File No. SR-NYSEArca-2014-41]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of
Designation of a Longer Period for Commission Action on Proceedings To
Determine Whether To Approve or Disapprove a Proposed Rule Change as
Modified by Amendment Nos. 1 and 4 Thereto, Relating to Listing and
Trading of Shares of the Reality Shares DIVS Index ETF Under NYSE Arca
Equities Rule 5.2(j)(3)
October 23, 2014.
On April 11, 2014, NYSE Arca, Inc. (``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 Reality Shares DIVS Index ETF (``Fund'')
(formerly, Reality Shares Isolated Dividend Growth Index ETF) under
NYSE Arca Equities Rule 5.2(j)(3). The proposed rule change was
published for comment in the Federal Register on April 30, 2014.\3\ On
May 6, 2014, the Exchange filed Amendment No. 1 to the proposed rule
change, which amended and replaced the proposed rule change in its
entirety.\4\ On June 6, 2014, the Exchange filed Amendment No. 4 to the
proposed rule change.\5\ On June 13, 2014, pursuant to Section 19(b)(2)
of the Act,\6\ the Commission designated a longer period within which
to approve the proposed rule change, disapprove the proposed rule
change, or institute proceedings to determine whether to disapprove the
proposed rule change.\7\ On July 29, 2014, the Commission instituted
proceedings under Section 19(b)(2)(B) of the Act \8\ to determine
whether to approve or disapprove the proposed rule change.\9\ In
response to the Order Instituting Proceedings, the Commission received
one comment letter on the proposal.\10\
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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. 72015 (Apr. 24,
2014), 79 FR 24475 (``Notice'').
\4\ In Amendment No. 1, the Exchange clarified the valuation of
investments for purposes of calculating net asset value, provided
additional details regarding the dissemination of the Disclosed
Portfolio, and made other minor technical edits to the proposed rule
change. Amendment No. 1 provided clarification to the proposed rule
change, and because it does not materially affect the substance of
the proposed rule change or raise novel or unique regulatory issues,
Amendment No. 1 is not subject to notice and comment.
\5\ The Exchange filed Amendment No. 2 on June 4, 2014 and
withdrew it on June 5, 2014, and filed Amendment No. 3 on June 5,
2014 and withdrew it on June 6, 2014. Amendment No. 4 supersedes
both Amendment Nos. 2 and 3. In Amendment No. 4, the Exchange
amended the proposal to reflect a name change to the Fund and the
underlying index. Specifically, the Exchange replaced each reference
to ``Reality Shares Isolated Dividend Growth Index ETF'' in the
proposal with ``Reality Shares DIVS Index ETF'' and replaced each
reference to ``Reality Shares Isolated Dividend Growth Index'' in
the proposal with ``Reality Shares DIVS Index.'' Amendment No. 4 is
a technical amendment and is not subject to notice and comment as it
does not materially affect the substance of the filing.
\6\ 15 U.S.C. 78s(b)(2).
\7\ See Securities Exchange Act Release No. 72385, 79 FR 35205
(Jun. 19, 2014). The Commission designated a longer period within
which to take action on the proposed rule change and designated July
29, 2014, as the date by which it should approve, disapprove, or
institute proceedings to determine whether to disapprove the
proposed rule change.
\8\ 15 U.S.C. 78s(b)(2)(B).
\9\ See Securities Exchange Act Release No. 72714, 79 FR 45574
(Aug. 5, 2014) (``Order Instituting Proceedings''). Specifically,
the Commission instituted proceedings to allow for additional
analysis of the proposed rule change's consistency with Section
6(b)(5) of the Act, which requires, among other things, that the
rules of a national securities exchange be ``designed to prevent
fraudulent and manipulative acts and practices, to promote just and
equitable principles of trade,'' and ``to protect investors and the
public interest.'' See id.
\10\ See Letter from Eric Ervin, President, Reality Shares ETF
Trust and Reality Shares Advisors, LLC, and President and CEO,
Reality Shares, Inc., to Kevin M. O'Neill, Deputy Secretary,
Commission, dated August 22, 2014.
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Section 19(b)(2) of the Act \11\ 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, however, extend the period for issuing an
order approving or disapproving the proposed rule change by not more
than 60 days if the Commission determines that a longer period is
appropriate and publishes the reasons for that determination. The
proposed rule change was published for notice and comment in the
Federal Register on April 30, 2014.\12\ The 180th day after publication
of the notice of the filing of the proposed rule change in the Federal
Register is October 27, 2014, and the 240th day after publication of
the notice of the filing of the proposed rule change in the Federal
Register is December 26, 2014.
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\11\ 15 U.S.C. 78s(b)(2).
\12\ See supra note 3.
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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 the proposed
rule change, including the matters raised in the comment letter to the
proposed rule change.
Accordingly, the Commission, pursuant to Section 19(b)(2) of the
Act,\13\ designates December 26, 2014 as the date by which the
Commission shall either approve or disapprove the proposed rule change
(File No. SR-NYSEArca-2014-41).
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\13\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(57).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-25673 Filed 10-28-14; 8:45 am]
BILLING CODE 8011-01-P