Notice2022-01562
Self-Regulatory Organizations; NYSE Arca, Inc.; Order Granting Approval of a Proposed Rule Change, as Modified by Amendment No. 1, To List and Trade Shares of ConvexityShares 1x SPIKES Futures ETF Under NYSE Arca Rule 8.200-E (Trust Issued Receipts)
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
January 27, 2022
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 87 Issue 18 (Thursday, January 27, 2022)</title>
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[Federal Register Volume 87, Number 18 (Thursday, January 27, 2022)]
[Notices]
[Pages 4314-4317]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-01562]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-94025; File No. SR-NYSEArca-2021-29]
Self-Regulatory Organizations; NYSE Arca, Inc.; Order Granting
Approval of a Proposed Rule Change, as Modified by Amendment No. 1, To
List and Trade Shares of ConvexityShares 1x SPIKES Futures ETF Under
NYSE Arca Rule 8.200-E (Trust Issued Receipts)
January 21, 2022.
I. Introduction
On May 13, 2021, NYSE Arca, Inc. (``NYSE Arca'' or ``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 ConvexityShares 1x SPIKES
Futures ETF (``Fund''), a series of the ConvexityShares Trust
(``Trust''), under NYSE Arca Rule 8.200-E, Commentary .02 (``Trust
Issued Receipts''). The proposed rule change was published for comment
in the Federal Register on May 26, 2021.\3\ On July 2, 2021, pursuant
to Section 19(b)(2) of the Act,\4\ 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
approve or disapprove the proposed rule change.\5\ On July 26, 2021,
the Exchange filed Amendment No. 1 to the proposed rule change, which
replaced and superseded the proposed rule change as originally
filed.\6\ On August 12, 2021, the Commission published notice of
Amendment No. 1 and instituted proceedings under Section 19(b)(2)(B) of
the Act \7\ to determine whether to approve or disapprove the proposed
rule change.\8\ On November 15, 2021, pursuant to Section 19(b)(2) of
the Act,\9\ the Commission designated a longer period within which to
issue an order approving or disapproving the proposed rule change.\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. 91952 (May 20,
2021), 86 FR 28410. The comment letter received on the proposed rule
change is available on the Commission's website at: <a href="https://www.sec.gov/comments/sr-nysearca-2021-29/srnysearca202129.htm">https://www.sec.gov/comments/sr-nysearca-2021-29/srnysearca202129.htm</a>.
\4\ 15 U.S.C. 78s(b)(2).
\5\ See Securities Exchange Act Release No. 92321, 86 FR 36173
(July 8, 2021).
\6\ Amendment No. 1 is available at: <a href="https://www.sec.gov/comments/sr-nysearca-2021-29/srnysearca202129.htm">https://www.sec.gov/comments/sr-nysearca-2021-29/srnysearca202129.htm</a>.
\7\ 15 U.S.C. 78s(b)(2)(B).
\8\ See Securities Exchange Act Release No. 92650, 86 FR 46287
(August 18, 2021).
\9\ 15 U.S.C. 78s(b)(2).
\10\ See Securities Exchange Act Release No. 93574, 86 FR 64975
(November 19, 2021). The Commission designated January 21, 2022, as
the date by which the Commission shall either approve or disapprove
the proposed rule change.
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The Commission is approving the proposed rule change, as modified
by Amendment No. 1.
II. Description of the Proposed Rule Change, as Modified by Amendment
No. 1 \11\
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\11\ Additional information regarding the Fund, the Trust, and
the Shares, including investment strategies, creation and redemption
procedures, and portfolio holdings can be found in Amendment No. 1,
supra note 6.
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The Exchange proposes to list and trade Shares of the Fund \12\
under NYSE Arca Rule 8.200-E, Commentary .02 which governs the listing
and trading of Trust Issued Receipts \13\ on the Exchange. The Fund
will be managed and controlled by ConvexityShares, LLC (``Sponsor''), a
commodity pool operator.\14\ Teucrium Trading, LLC, a commodity trading
adviser registered with the Commodity Futures Trading Commission, will
be the Sub-Adviser for the Fund (``Sub-Adviser'') and will manage the
Fund's commodity futures investment strategy.\15\ U.S. Bank will
provide custody and fund accounting to the Trust and the Fund; U.S.
Bancorp Fund Services will be the transfer agent for the Shares and
administrator for the Fund; and Foreside will serve as the distributor
for the Fund.
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\12\ The Fund has filed a registration statement on Form S-1
under the Securities Act of 1933, dated May 25, 2021 (``Registration
Statement''). The Registration Statement for the Fund is not yet
effective and the Exchange will not commence trading in Shares of
the Fund until the Registration Statement becomes effective.
\13\ Commentary .02 to NYSE Arca Rule 8.200-E applies to Trust
Issued Receipts that invest in ``Financial Instruments.'' The term
``Financial Instruments,'' as defined in Commentary .02(b)(4) to
NYSE Arca Rule 8.200-E, means any combination of investments,
including cash; securities; options on securities and indices;
futures contracts; options on futures contracts; forward contracts;
equity caps, collars, and floors; and swap agreements.
\14\ The Sponsor is not registered as a broker-dealer or
affiliated with a broker-dealer. In the event (a) the Sponsor
becomes registered as a broker-dealer or becomes newly affiliated
with a broker-dealer, or (b) any new sponsor becomes registered as a
broker-dealer or becomes newly affiliated with a broker-dealer, it
will implement and maintain a fire wall with respect to its relevant
personnel of the broker-dealer or broker-dealer affiliate, as
applicable, regarding access to information concerning the
composition and/or changes to the portfolio, and will be subject to
procedures designed to prevent the use and dissemination of material
non-public information regarding the portfolio.
\15\ The Sub-Adviser is not registered as a broker-dealer or
affiliated with a broker-dealer. In the event (a) the Sub-Adviser
becomes registered as a broker-dealer or becomes newly affiliated
with a broker-dealer, or (b) any new Sub-Adviser becomes registered
as a broker-dealer or becomes newly affiliated with a broker-dealer,
it will implement and maintain a fire wall with respect to its
relevant personnel of the broker-dealer or broker-dealer affiliate,
as applicable, regarding access to information concerning the
composition and/or changes to the portfolio, and will be subject to
procedures designed to prevent the use and dissemination of material
non-public information regarding the portfolio.
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The Fund will seek investment results, before fees and expenses,
that correspond to the performance of its benchmark index, the T3 SPIKE
Front 2 Futures Index (``Index''), an investable index of SPIKES
futures contracts.\16\ The Fund will seek to track the Index over time,
not just for a single day. The Index is intended to reflect the returns
that are potentially available through an unleveraged investment in a
theoretical portfolio of first- and second-month futures contracts on
the SPIKES Volatility Index (``SPIKES Index'').\17\
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\16\ The Index is sponsored by Triple Three Partners Pty Ltd,
which licenses the use of the Index to its affiliated company, T3i
Pty Ltd (Triple Three Partners Pty Ltd and T3i Pty Ltd. are
collectively referred to herein as ``T3 Index'' or ``Index
Sponsor''). The Index Sponsor is affiliated with the Sponsor. The
Index Sponsor has implemented and will maintain a fire wall
regarding access to information concerning the composition of and/or
changes to the Index. In addition, the Index Sponsor has implemented
and will maintain procedures that are designed to prevent the use
and dissemination of material, non-public information regarding the
Index. The Index Sponsor is not registered as an investment adviser
or broker-dealer and is not affiliated with any broker-dealers. The
Index is calculated and published by Solactive AG, which is not
affiliated with T3 Index.
\17\ The Exchange states that the SPIKES Index is a non-
investable index that measures the implied volatility of the SPDR
S&P 500 ETF Trust (``SPY'') over 30 days in the future. SPY is a
unit investment trust that holds a portfolio of common stocks that
closely tracks the price performance and dividend yield of the S&P
500 Composite Price Index (``S&P 500''). The SPIKES Index does not
represent the actual or the realized volatility of SPY. The SPIKES
Index is calculated based on the prices of a constantly changing
portfolio of SPY put and call options. The SPIKES Index is
reflective of the premium paid by investors for certain options
linked to the level of the S&P 500. The SPIKES Index is a
theoretical calculation and cannot be traded on a spot basis. T3
Index is the owner, creator and licensor of the SPIKES Index. The
SPIKES Index is calculated, maintained and published by Miami
International Securities Exchange, LLC via the Options Price
Reporting Authority.
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The Index is comprised solely of SPIKES futures contracts.\18\ The
Index
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employs rules for selecting the SPIKES futures contracts comprising the
Index and a formula to calculate a level for the Index from the prices
of these SPIKES futures contracts. Currently, the SPIKES futures
contracts comprising the Index represent the prices of two near-term
SPIKES futures contracts, replicating a position that rolls the nearest
month SPIKES futures contracts to the next month SPIKES futures
contracts at or close to the daily settlement price via a Trade-At-
Settlement \19\ program towards the end of each business day in equal
fractional amounts. This results in a constant weighted average
maturity of one month.
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\18\ According to the Exchange, SPIKES futures contracts were
launched for trading by the Minneapolis Grain Exchange, LLC
(``MGEX'') on December 14, 2020. While the SPIKES Index represents a
measure of the expected 30-day volatility of SPY, the prices of
SPIKES futures contracts are based on the current expectation of the
expected 30-day volatility of SPY on the expiration date of the
futures contract.
\19\ According to the Exchange, a Trade at Settlement (``TAS'')
transaction is a transaction at a price equal to the daily
settlement price, or at a specified differential above or below the
daily settlement price. The TAS transaction price will be determined
following execution and based upon the daily settlement price of the
respective SPIKES futures contracts month. The permissible price
range for permitted TAS transactions is from 0.50 index points below
the daily settlement price to 0.50 index points above the daily
settlement price. The permissible minimum increment for a TAS
transaction is 0.01 index points. See MGEX Rule 83.15 at <a href="http://www.mgex.com/documents/20210318-Rulebook.pdf">http://www.mgex.com/documents/20210318-Rulebook.pdf</a>.
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The Fund will invest primarily in SPIKES futures contracts to gain
the appropriate exposure to the Index. Under certain circumstances
(described below), the Fund may also invest in futures contracts and
swap contracts (``VIX Related Positions'') on the Cboe Volatility Index
(``VIX'').\20\ The Exchange states that the VIX is an index that tracks
volatility and would be expected to perform in a substantially similar
manner as the SPIKES Index.
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\20\ According to the Exchange, the VIX is a measure of
estimated near-term future volatility based upon the weighted
average of the implied volatilities of near-term put and call
options on the S&P 500.
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The Fund seeks to achieve its investment objective through the
appropriate amount of exposure to the SPIKES futures contracts included
in the Index. The Sponsor or Sub-Adviser determines the type, quantity
and mix of investments that the Sponsor or Sub-Adviser believes, in
combination, should provide exposure to the Index to seek investment
results equal to the performance of the Index. In the event
accountability rules, price limits, position limits, margin limits or
other exposure limits are reached with respect to SPIKES futures
contracts, or if the market for a specific futures contract experiences
emergencies (e.g., natural disaster, terrorist attack or an act of God)
or disruptions (e.g., a trading halt or a flash crash), or in
situations where the Sponsor or Sub-Adviser deems it impractical or
inadvisable to buy or sell SPIKES futures contracts (such as during
periods of market volatility or illiquidity, or when trading in SPY is
halted), the Sponsor or Sub-Adviser may cause the Fund to invest in VIX
Related Positions. The Sponsor expects the Fund's positions in VIX
Related Positions to consist primarily of VIX futures contracts, which
are traded on the Cboe Futures Exchange. However, in the event
accountability rules, price limits, position limits, margin limits or
other exposure limits are reached with respect to VIX futures
contracts, or if the market for a specific VIX futures contract
experiences emergencies or disruptions or in situations where the
Sponsor or Sub-Adviser deems it impractical or inadvisable to buy or
sell VIX futures contracts, the Fund would hold VIX swap
agreements.\21\ The Fund will also hold cash or cash equivalents such
as U.S. Treasury securities or other high credit quality, short-term
fixed-income or similar securities (such as shares of money market
funds) as collateral for investments and pending investments.
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\21\ The Fund will attempt to limit counterparty risk in
uncleared swap agreements by entering into such agreements only with
counterparties the Sponsor and Sub-Adviser believe are creditworthy
and by limiting the Fund's exposure to each counterparty. The
Exchange represents that the Sponsor and Sub-Adviser will monitor
the creditworthiness of each counterparty and the Fund's exposure to
each counterparty on an ongoing basis.
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III. Discussion and Commission Findings
After careful review of the proposed rule change, as modified by
Amendment No. 1, as well as the comment received, the Commission finds
that the proposed rule change, as modified by Amendment No. 1, is
consistent with the Act and the rules and regulations thereunder
applicable to a national securities exchange.\22\ In particular, the
Commission finds that the proposed rule change, as modified by
Amendment No. 1, is consistent with Section 6(b)(5) of the Act,\23\
which requires, among other things, that the Exchange's rules be
designed to prevent fraudulent and manipulative acts and practices, 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.
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\22\ 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).
\23\ 15 U.S.C. 78f(b)(5).
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The Sponsor submitted a comment in support of the proposed rule
change.\24\ The Sponsor states that the Fund employs no leverage and
only seeks to track the performance of the Index.\25\ The Sponsor
states that because the Fund will likely be net buying SPIKES futures
contracts when the stock market is steady or rising, and market
volatility is steady or declining, and net selling SPIKES futures
contracts when the stock market declines and market volatility is
rising, the Fund is likely a supplier of liquidity, which is a
desirable characteristic in an environment where liquidity is in high
demand but short supply.\26\ Further, the Sponsor asserts approval of
the proposal would increase competition in the market and provide a
lower cost hedge against the effects of volatility than buying futures
contracts.\27\
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\24\ See letter from Eric Simanek, Partner, Sullivan & Worcester
LLP, on behalf of the Sponsor, to Vanessa Countryman, Secretary,
Commission, dated September 8, 2021.
\25\ See id. at 2.
\26\ See id. at 9.
\27\ See id. at 8-10.
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The proposal is reasonably designed to promote fair disclosure of
information that may be necessary to price the Shares appropriately and
to prevent trading in the Shares when a reasonable degree of certain
pricing transparency cannot be assured. Specifically, the Exchange will
obtain a representation from the issuer of the Shares that the net
asset value (``NAV'') per Share will be calculated and disseminated
daily and will be made available to all market participants at the same
time. Each day before 9:30 a.m., E.T., the daily holdings of the Fund
will be available on the Fund's website, <a href="http://www.convexityshares.com">www.convexityshares.com</a>, which
will be publicly accessible at no charge.\28\ This website disclosure
of the Fund's daily holdings will occur at approximately the same time
as the disclosure by the Trust of the daily holdings to authorized
participants, so that all market participants will be provided daily
holdings information at approximately the same time, and the
[[Page 4316]]
same holdings information will be provided on the public website as in
electronic files provided to authorized participants. Quotation and
last-sale information regarding the Shares will be disseminated through
the facilities of the Consolidated Tape Association. As required by
NYSE Arca Rule 8.200-E, Commentary .02, an updated Intraday Fund Value
(``IFV'') will be calculated and widely disseminated by one or more
major market data vendors every 15 seconds during the Exchange's Core
Trading Session (9:30 a.m., E.T., to 4:00 p.m., E.T.). The IFV will be
readily available from the Fund's website, automated quotation systems,
published or other public sources, or major market data vendors'
website or on-line information services. 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. The Fund's website will include a form of
the prospectus for the Fund and additional data relating to NAV and
other applicable quantitative information. The level of the Index will
be published at least every 15 seconds, both in real time from 9:30
a.m. to 4 p.m., E.T., and at the close of trading on each business day
by Bloomberg and Reuters. The Fund's website will also provide
information regarding the SPIKES futures contracts constituting the
Index and the Index methodology. In addition, the level of the SPIKES
Index and the VIX is available from Bloomberg and Reuters.
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\28\ The daily website disclosure of portfolio holdings will
include, as applicable, (i) the composite value of the total
portfolio, (ii) the quantity and type of each holding (including the
ticker symbol, maturity date or other identifier, if any) and other
descriptive information including, in the case of a swap, the type
of swap, its notional value and the underlying instrument, index or
asset on which the swap is based, (iii) the market value of each
investment held by the Fund, (iv) the type (including maturity,
ticker symbol, or other identifier) and value of each Treasury
security and cash equivalent, and (v) the amount of cash held in the
Fund's portfolio.
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Complete real-time data for SPIKES futures contracts, which trade
on MGEX, is available by subscription through on-line information
services. MGEX also provides delayed futures information on current and
past trading sessions and market news free of charge on its website.
Price information regarding cleared VIX swap contracts is available
from major market data vendors and price information for non-exchange-
traded VIX swap contracts may be obtained from brokers and dealers who
make markets in such instruments. Price information regarding VIX
futures is available from the Cboe Futures Exchange and from major
market data vendors. Price information for cash equivalents is
available from major market data vendors.
The Exchange's rules regarding trading halts further help to ensure
the maintenance of fair and orderly markets for the Shares, which is
consistent with the protection of investors and the public interest.
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. These may include: (1) The extent to which trading is not
occurring in the securities and/or the financial instruments composing
the daily 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. Trading in Shares of the Fund will be
halted if the circuit breaker parameters in NYSE Arca Rule 7.12-E
(Trading Halts Due to Extraordinary Market Volatility) have been
reached. The Exchange may halt trading during the day in which an
interruption to the dissemination of the IFV or the value of the Index
occurs. If the interruption to the dissemination of the IFV or the
value of the Index persists past the trading day in which it occurred,
the Exchange will halt trading no later than the beginning of the
trading day following the interruption. In addition, if the Exchange
becomes aware that the NAV with respect to the Shares or disclosure of
the Fund's daily holdings is not disseminated to all market
participants at the same time, it will halt trading in the Shares until
such time as the NAV and the Fund's daily holdings is available to all
market participants. NYSE Arca Rule 8.200-E, Commentary .02, enumerates
additional circumstances under which the Exchange will consider the
suspension of trading in and will commence delisting proceedings for
the Shares.
The Exchange's proposal is designed to safeguard material non-
public information relating to the Fund's portfolio. Specifically, as
the Exchange states, neither the Sponsor nor the Sub-Adviser is
registered as a broker-dealer or affiliated with a broker-dealer. In
the event that (a) either the Sponsor or the Sub-Adviser becomes
registered as a broker-dealer or newly affiliated with a broker-dealer,
or (b) any new sponsor or sub-adviser is registered as a broker-dealer
or becomes affiliated with a broker-dealer, it will implement and
maintain a fire wall with respect to its relevant personnel or
personnel of the broker-dealer affiliate, as applicable, regarding
access to information concerning the composition of and/or changes to
the portfolio, and will be subject to procedures designed to prevent
the use and dissemination of material non-public information regarding
the portfolio. Moreover, trading of the Shares will be subject to NYSE
Arca Rule 8.200-E, Commentary .02(e), which sets forth certain
restrictions on Equity Trading Permit Holders (``ETP Holders'') acting
as registered Market Makers \29\ in Trust Issued Receipts to facilitate
surveillance. In addition, the Exchange has a general policy
prohibiting the distribution of material, non-public information by its
employees.
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\29\ As defined in NYSE Arca Rule 1.1(z) the term ``Market
Maker'' means an ETP Holder that acts as a Market Maker pursuant to
NYSE Arca Rule 7-E.
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Furthermore, the Exchange or the Financial Industry Regulatory
Authority (``FINRA''), on behalf of the Exchange, or both, will
communicate as needed, and may obtain information, regarding trading in
the Shares, SPIKES futures, VIX futures and other underlying exchange-
listed instruments with other markets and entities that are members of
the Intermarket Surveillance Group (``ISG''). In addition, the Exchange
may obtain information regarding trading in the Shares, SPIKES futures,
VIX futures and other underlying exchange-listed instruments from
markets and other entities with which the Exchange has in place a
comprehensive surveillance sharing agreement (``CSSA''). All futures
contracts in which the Fund invests shall consist of futures contracts
whose principal market is a member of the ISG or is a market with which
the Exchange has a CSSA. The Exchange states that trading in the Shares
will be subject to existing trading surveillances administered by the
Exchange, as well as cross-market surveillances administered by FINRA
on behalf of the Exchange, and 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 federal
securities laws applicable to trading on the Exchange.
The Exchange has demonstrated there is an appropriate regulatory
framework to support listing and trading of the Shares, including
trading rules, surveillance, and listing standards. Moreover, the
trading of the Shares on the Exchange will be subject to the Exchange's
and other rules listed below. Specifically:
(1) The Exchange deems the Shares to be equity securities, thus
rendering trading in the Shares subject to the Exchange's existing
rules governing the trading of equity securities;
(2) The Shares will conform to the initial and continued listing
criteria under NYSE Arca Rule 8.200-E;
(3) Pursuant to NYSEArca Rule 8.200-E(a), all statements and
representations made in the filing regarding (a) the description of the
Index, portfolio, or reference asset, (b) limitations on Index or
portfolio holdings or reference assets, or (c) the applicability of
Exchange
[[Page 4317]]
listing rules specified in the filing will constitute continued listing
requirements for the Shares. The issuer will advise the Exchange of any
failure by the Fund to comply with the continued listing requirements,
and, pursuant to its obligations under Section 19(g)(1) of the Act, the
Exchange will monitor \30\ for compliance with the continued listing
requirements. If the Fund is not in compliance with the applicable
listing requirements, the Exchange will commence delisting procedures
under NYSE Arca Rule 5.5-E(m).
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\30\ Certain proposals for the listing and trading of exchange-
traded products include a representation that the exchange will
``surveil'' for compliance with the continued listing requirements.
See, e.g., Securities Exchange Act Release No. 77499 (April 1,
2016), 81 FR 20428, 20432 (April 7, 2016) (SR-BATS-2016-04). In the
context of this representation, it is the Commission's view that
``monitor'' and ``surveil'' both mean ongoing oversight of
compliance with the continued listing requirements. Therefore, the
Commission does not view ``monitor'' as a more or less stringent
obligation than ``surveil'' with respect to the continued listing
requirements.
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(4) The Exchange has the appropriate rules to facilitate
transactions in the Shares during all trading sessions;
(5) Prior to the commencement of trading, the Exchange will inform
its ETP Holders in an Information Bulletin of the special
characteristics and risks associated with trading the Shares; \31\
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\31\ The Exchange states that the Information Bulletin will
discuss the following: (1) The risks involved in trading the Shares
during the Opening and Late Trading Sessions when an updated IFV
will not be calculated or publicly disseminated; (2) the procedures
for purchases and redemptions of Shares in Creation Units and
Redemption Units (and that Shares are not individually redeemable);
(3) NYSE Arca Rule 9.2-E(a), which imposes a duty of due diligence
on its ETP Holders to learn the essential facts relating to every
customer prior to trading the Shares; (4) how information regarding
the IFV is disseminated; (5) how information regarding portfolio
holdings is disseminated; (6) the requirement that ETP Holders
deliver a prospectus to investors purchasing newly issued Shares
prior to or concurrently with the confirmation of a transaction; and
(7) trading information.
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(6) For initial and continued listing, the Fund will be in
compliance with Rule 10A-3 under the Act; \32\ and
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\32\ 17 CFR 240.10A-3.
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(7) A minimum of 100,000 Shares of the Fund will be outstanding at
the commencement of trading on the Exchange.
Accordingly, the Commission finds that the proposed rule change, as
modified by Amendment No. 1, is consistent with Section 6(b)(5) of the
Act \33\ and the rules and regulations thereunder applicable to a
national securities exchange.
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\33\ 15 U.S.C. 78f(b)(5).
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VI. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\34\ that the proposed rule change (SR-NYSEArca-2021-29), as
modified by Amendment No. 1, be, and hereby is, approved.
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\34\ Id.
\35\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\35\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-01562 Filed 1-26-22; 8:45 am]
BILLING CODE 8011-01-P
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