[Federal Register Volume 84, Number 138 (Thursday, July 18, 2019)]
[Notices]
[Pages 34457-34467]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-15251]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-86362; File No. SR-NYSEArca-2019-36]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
of Amendment No. 3 and Order Granting Accelerated Approval of a 
Proposed Rule Change, as Modified by Amendment No. 3, To List and Trade 
Shares of JPMorgan Income Builder Blend ETF under NYSE Arca Rule 8.600-
E

July 12, 2019.

I. Introduction

    On May 10, 2019, 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'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to 
list and trade shares of the JPMorgan Income Builder Blend ETF under 
NYSE Arca Rule 8.600-E. The proposed rule change was published for 
comment in the Federal Register on May 28, 2019.\3\ On June 7, 2019, 
the Exchange filed Amendment No. 1 to the proposed rule change, and on 
June 21, 2019, the Exchange filed Amendment No. 2 to the proposed rule 
change. On July 2, 2019, the Exchange filed Amendment No. 3 to the 
proposed rule change, which replaced and superseded the proposed rule 
change, as modified by Amendment Nos. 1 and 2.\4\ The

[[Page 34458]]

Commission has received no comments on 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. 85899 (May 21, 
2019), 84 FR 24563 (May 28, 2019).
    \4\ In Amendment No. 3, the Exchange: (1) Clarified the 
permitted investments of the Fund; (2) represented that the Fund's 
portfolio (including investments in Fixed Income Instruments (as 
defined below), equities, and Private ABS/MBS (as defined below)) 
will meet all of the generic listing requirements of Commentary .01 
to NYSE Arca Rule 8.600-E applicable to the listing of Managed Fund 
Shares, except for those set forth in (a) Commentary .01(a)(1)(E) 
and .01(a)(2)(E) regarding over-the-counter (``OTC'') equity-linked 
notes, OTC rights, OTC warrants, and OTC CVRs; (b) Commentary 
.01(a)(1) regarding non-exchange-traded investment company 
securities; and (c) Commentary .01(b)(4) regarding Private ABS/MBS; 
(3) provided additional information regarding the availability of 
pricing information for the permitted investments of the Fund; (4) 
represented that the Exchange may communicate as needed regarding 
trading in the Shares and certain exchange-listed securities and 
financial instruments held by the Fund from markets and other 
entities with which the Exchange has in place a comprehensive 
surveillance sharing agreement; and (5) made other clarifications, 
corrections, and technical changes. Amendment No. 3 is available at: 
https://www.sec.gov/comments/sr-nysearca-2019-36/srnysearca201936-5756090-186867.pdf.
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    The Commission is publishing this notice to solicit comments on 
Amendment No. 3 from interested persons, and is approving the proposed 
rule change, as modified by Amendment No. 3, on an accelerated basis.

II. The Exchange's Description of the Proposed Rule Change

    In its filing with the Commission, the self-regulatory organization 
included statements concerning the purpose of, and basis for, the 
proposed rule change and discussed any comments it received on the 
proposed rule change. The text of those statements may be examined at 
the places specified in Item IV below. The Exchange has prepared 
summaries, set forth in sections A, B, and C below, of the most 
significant parts of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to list and trade shares (``Shares'') of the 
following under NYSE Arca Rule 8.600-E, which governs the listing and 
trading of Managed Fund Shares \5\ on the Exchange: JPMorgan Income 
Builder Blend ETF (the ``Fund'').\6\
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    \5\ A Managed Fund Share is a security that represents an 
interest in an investment company registered under the Investment 
Company Act of 1940 (15 U.S.C. 80a-1) (``1940 Act'') organized as an 
open-end investment company or similar entity that invests in a 
portfolio of securities selected by its investment adviser 
consistent with its investment objectives and policies. In contrast, 
an open-end investment company that issues Investment Company Units, 
listed and traded on the Exchange under NYSE Arca Rule 5.2-E(j)(3), 
seeks to provide investment results that correspond generally to the 
price and yield performance of a specific foreign or domestic stock 
index, fixed income securities index or combination thereof.
    \6\ The Trust is registered under the 1940 Act. On July 31, 
2018, the Trust filed with the Commission an amendment to its 
registration statement on Form N-1A under the Securities Act of 1933 
(15 U.S.C. 77a) (``Securities Act'') and the 1940 Act relating to 
the Fund (File Nos. 333-191837 and 811-22903) (the ``Registration 
Statement''). The description of the operation of the Trust and the 
Fund herein is based, in part, on the Registration Statement. The 
Trust will file an amendment to the Registration Statement as 
necessary to conform to representations in this filing. In addition, 
the Commission has issued an order granting certain exemptive relief 
to the Trust under the 1940 Act. See Investment Company Act Release 
No. 31990 (February 9, 2016) (``Exemptive Order''). Investments made 
by the Fund will comply with the conditions set forth in the 
Exemptive Order.
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    The Fund is a series of J.P. Morgan Exchange-Traded Fund Trust 
(``Trust''), a Delaware statutory trust. J.P. Morgan Investment 
Management Inc. (``Adviser'' or ``Administrator'') will be the 
investment adviser to the Fund and also provide administrative services 
for and oversee the other service providers for the Fund. The Adviser 
is a wholly-owned subsidiary of JPMorgan Asset Management Holdings 
Inc., which is an indirect, wholly-owned subsidiary of JPMorgan Chase & 
Co., a bank holding company. JPMorgan Distribution Services, Inc. 
(``Distributor'') will be the distributor of the Fund's Shares.
    Commentary .06 to Rule 8.600-E provides that, if the investment 
adviser to the investment company issuing Managed Fund Shares is 
affiliated with a broker-dealer, such investment adviser shall erect 
and maintain a ``fire wall'' between the investment adviser and the 
broker-dealer with respect to access to information concerning the 
composition and/or changes to such investment company portfolio.\7\ In 
addition, Commentary .06 further requires that personnel who make 
decisions on the open-end fund's portfolio composition must be subject 
to procedures designed to prevent the use and dissemination of material 
nonpublic information regarding the open-end fund's portfolio. The 
Adviser is not registered as a broker-dealer but is affiliated with a 
broker-dealer and has implemented and will maintain a fire wall with 
respect to such broker-dealer affiliate regarding access to information 
concerning the composition and/or changes to the portfolio. In the 
event (a) the Adviser becomes registered as a broker-dealer or newly 
affiliated with one or more broker-dealers, or (b) any new adviser or 
sub-adviser is a registered broker-dealer or becomes affiliated with a 
broker-dealer, it will implement and maintain a fire wall with respect 
to its relevant personnel or its broker-dealer affiliate 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 such 
portfolio.
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    \7\ An investment adviser to an open-end fund is required to be 
registered under the Investment Advisers Act of 1940 (the ``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.
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JPMorgan Income Builder Blend ETF
    According to the Registration Statement, the Fund seeks to maximize 
income on a risk-adjusted basis as the primary objective, while 
maintaining prospects for capital appreciation as a secondary 
objective. The Adviser will buy and sell securities and other 
investments for the Fund based on the Adviser's view of strategies, 
sectors, and overall portfolio construction taking into account income 
generation, risk/return analyses, and relative value considerations.
    Under normal market conditions,\8\ the Fund may invest in the fixed 
income securities, equity securities, derivative instruments and other 
financial instruments described below.
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    \8\ The term ``normal market conditions'' is defined in NYSE 
Arca Rule 8.600-E(c)(5).
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    The Fund may invest in the following ``Fixed Income Instruments'': 
\9\
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    \9\ Other than ``Private ABS/MBS, which will not meet the 
criteria of Commentary .01(b)(4) to NYSE Arca Rule 8.600-E, as 
discussed below, all Fixed Income Instruments would meet the generic 
criteria of Rule 8.600-E, Comm. .01(b).
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     U.S. Government obligations; \10\
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    \10\ Examples of U.S. Government obligations include direct 
obligations of the U.S. Treasury, including Treasury bills, notes 
and bonds, all of which are backed as to principal and interest 
payments by the full faith and credit of the United States, and 
separately traded principal and interest component parts of such 
obligations that are transferable through the Federal book-entry 
system known as Separate Trading of Registered Interest and 
Principal of Securities (``STRIPS'') and Coupons Under Book Entry 
Safekeeping (``CUBES'').
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     U.S. Government Agency Securities (including agency asset-
backed securities (``ABS'') and agency mortgage-backed securities 
(``MBS''); \11\
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    \11\ Examples of U.S. Government Agency Securities include 
securities issued or guaranteed by agencies and instrumentalities of 
the U.S. government. These include all types of securities issued by 
the Government National Mortgage Association (``Ginnie Mae''), the 
Federal National Mortgage Association (``Fannie Mae'') and the 
Federal Home Loan Mortgage Corporation (``Freddie Mac''), including 
funding notes, subordinated benchmark notes, collateralized mortgage 
obligations (``CMOs'') and Real Estate Mortgage Investment Conduits 
(``REMICs'').
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     Treasury Receipts; \12\
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    \12\ Treasury Receipts are interests in separately traded 
interest and principal component parts of U.S. Treasury obligations 
that are issued by banks or brokerage firms and that are created by 
depositing U.S. Treasury notes and U.S. Treasury bonds into a 
special account at a custodian bank. Receipts include Treasury 
Receipts (``TRs''), Treasury Investment Growth Receipts (``TIGRs''), 
and Certificates of Accrual on Treasury Securities (``CATS'').

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[[Page 34459]]

     Trust preferred securities;
     Zero-coupon, pay-in-kind and deferred payment securities; 
\13\
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    \13\ Zero-coupon securities are securities that are sold at a 
discount to par value and on which interest payments are not made 
during the life of the security. Pay-in-kind securities are 
securities that have interest payable by delivery of additional 
securities. Deferred payment securities are zero-coupon debt 
securities which convert on a specified date to interest bearing 
debt securities.
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     Variable and floating rate instruments;
     Inverse floating rate securities;
     Synthetic variable rate instruments; \14\
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    \14\ Synthetic variable rate instruments are instruments that 
generally involve the deposit of a long-term tax exempt bond in a 
custody or trust arrangement and the creation of a mechanism to 
adjust the long-term interest rate on the bond to a variable short-
term rate and a right (subject to certain conditions) on the part of 
the purchaser to tender it periodically to a third party at par.
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     Municipal securities (other than auction rate municipal 
securities);
     Auction rate municipal securities and auction rate 
preferred securities;
     Brady bonds;
     Non-agency ABS; \15\
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    \15\ For purposes of this filing, non-agency ABS are 
collateralized bond obligations (``CBOs''), collateralized loan 
obligations (``CLOs''), and other collateralized debt obligations 
(``CDOs'').
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     Non-agency MBS; \16\
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    \16\ For purposes of this filing, non-agency MBS are 
collateralized mortgage obligations (``CMOs''); commercial mortgage-
backed securities (``CMBS''); residential mortgage-backed securities 
(``RMBS''); and principal-only (PO) and interest-only (IO) stripped 
MBS. Non-agency ABS and non-agency MBS are referred to herein as 
``Private ABS/MBS.''
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     Stripped MBS; \17\
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    \17\ Stripped MBS are derivative multi-class mortgage securities 
which are usually structured with two classes of shares that receive 
different proportions of the interest and principal from a pool of 
mortgage assets. These include IO and PO securities issued outside a 
Real Estate Mortgage Investment Conduit (``REMIC'') or CMO 
structure.
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     Custodial receipts; \18\
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    \18\ The Fund may acquire securities in the form of custodial 
receipts that evidence ownership of future interest payments, 
principal payments or both on certain U.S. Treasury notes or bonds 
in connection with programs sponsored by banks and brokerage firms.
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     Inflation-linked securities, including Treasury Inflation 
Protected Securities (``TIPS'');
     Loan assignments and participations, and commitments to 
purchase loan assignments;
     Adjustable rate mortgage loans (``ARMs'');
     Mortgages (directly held); \19\
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    \19\ Directly held mortgages are debt instruments secured by 
real property.
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     Mortgage dollar rolls;
     Short-term funding agreements; \20\
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    \20\ Short-term funding agreements are agreements issued by 
banks and highly rated U.S. insurance companies such as Guaranteed 
Investment Contracts (``GICs'') and Bank Investment Contracts 
(``BICs'').
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     Sovereign obligations and obligations of supranational 
agencies;
     Corporate debt securities of U.S. and foreign issuers; and
     Convertible securities.
    The Fund may hold cash and cash equivalents.\21\
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    \21\ For purposes of this filing, cash equivalents include the 
securities included in Commentary .01(c) to NYSE Arca Rule 8.600-E.
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    The Fund may purchase and sell securities on a when-issued, delayed 
delivery, or forward commitment basis.
    The Fund may invest in private placements, restricted securities 
and Rule 144A securities.
    The Fund may invest in the following exchange-listed equity 
securities: U.S. and foreign exchange-listed common stocks of U.S. and 
foreign corporations, U.S. and foreign exchange-listed preferred stocks 
of U.S. and foreign corporations, U.S. and foreign exchange-listed 
warrants of U.S. and foreign corporations, U.S. and foreign exchange-
listed rights of U.S. and foreign corporations, U.S. and foreign 
exchange-listed master limited partnerships (``MLPs''), U.S. and 
foreign exchange-listed real estate investment trusts (``REITs''), U.S. 
and foreign exchange-listed convertible securities.
    The Fund may invest in U.S. and foreign exchange-listed and non-
exchange-traded Depositary Receipts.\22\
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    \22\ Depositary Receipts include American Depositary Receipts 
(``ADRs''), Global Depositary Receipts (``GDRs'') and European 
Depositary Receipts (``EDRs''). ADRs are receipts typically issued 
by an American bank or trust company that evidence ownership of 
underlying securities issued by a foreign corporation. EDRs are 
receipts issued by a European bank or trust company evidencing 
ownership of securities issued by a foreign corporation. GDRs are 
receipts issued throughout the world that evidence a similar 
arrangement. ADRs, EDRs and GDRs may trade in foreign currencies 
that differ from the currency the underlying security for each ADR, 
EDR or GDR principally trades in. Generally, ADRs, in registered 
form, are designed for use in the U.S. securities markets. EDRs, in 
registered form, are used to access European markets. GDRs, in 
registered form, are tradable both in the United States and in 
Europe and are designed for use throughout the world. No more than 
10% of the equity weight of the Fund's portfolio will be invested in 
non-exchange-traded ADRs.
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    The Fund may hold exchange-traded funds (``ETFs''),\23\ and U.S. 
exchange-traded closed-end funds.
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    \23\ For purposes of this filing, ``ETFs'' are Investment 
Company Units (as described in NYSE Arca Rule 5.2-E(j)(3)); 
Portfolio Depositary Receipts (as described in NYSE Arca Rule 8.100-
E); and Managed Fund Shares (as described in NYSE Arca Rule 8.600-
E). All ETFs will be listed and traded in the U.S. on a national 
securities exchange. While the Fund may invest in inverse ETFs, the 
Fund will not invest in leveraged (e.g., 2X, -2X, 3X or -3X) ETFs.
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    The Fund may invest in securities of non-exchange-traded investment 
company securities, subject to applicable limitations under Section 
12(d)(1) of the 1940 Act.
    The Fund may hold over-the-counter (``OTC'') equity-related 
structured investments.\24\
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    \24\ An equity-related structured investment is a security 
having a return tied to an underlying index or other security or 
asset class. Equity-related structured investments generally are 
individually negotiated agreements and may be traded OTC. Structured 
investments are organized and operated to restructure the investment 
characteristics of the underlying index, currency, commodity or 
financial instrument. OTC equity-related structured investments are 
OTC rights, OTC warrants and OTC equity-linked notes. As discussed 
below, OTC equity-related structured investments will not meet 
generic criteria of 8.600-E, Comm. .01(a).
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    The Fund may hold the following U.S. and foreign exchange-listed 
and OTC derivative instruments: OTC foreign currency forwards; U.S. and 
foreign exchange-listed futures and options on stocks, Fixed Income 
Instruments, interest rates, credit, currencies, commodities or related 
indices; and OTC options on stocks, Fixed Income Instruments, interest 
rates, credit, currencies, commodities or related indices.
    The Fund may invest in exchange-traded or OTC total return swaps on 
U.S. and foreign equities, U.S. and foreign equity indices, currencies, 
interest rates, inflation, commodities, Fixed Income Instruments and 
Fixed Income Instruments indexes.
    The Fund may engage in foreign currency transactions which involve 
strategies used to hedge against currency risks, for other risk 
management purposes or to increase income or gain to the Fund. These 
strategies may consist of use of any of the following: Options on 
currencies, currency futures, options on such futures, forward foreign 
currency transactions (including non-deliverable forwards (``NDFs'')), 
forward rate agreements, spot currency transactions, and currency 
swaps, caps and floors.
    The Fund may hold exchange-traded or non-exchange-traded contingent 
value rights (``CVRs'').\25\
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    \25\ For purposes of this filing, CVRs are rights provided to 
shareholders of a company in connection with a corporate 
restructuring or acquisition. These rights relate to additional 
benefits to shareholders if a certain event occurs. CVRs frequently 
have an expiration date relating to the times that contingent events 
must occur. CVRs related to a company's stock are generally related 
to the price performance of such stock. The Adviser represents that 
the Fund will not actively invest in such securities but may, at 
times, receive a distribution of such securities in connection with 
the Fund's holdings in other securities. Therefore, the Fund's 
holdings in non-exchange-traded CVRs, if any, would not be utilized 
to further the Fund's investment objective and would not be acquired 
as the result of the Fund's voluntary investment decisions.

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[[Page 34460]]

    The Fund may engage in short sales of any financial instruments in 
which it may invest.
    The Fund will not invest in securities or other financial 
instruments that have not been described in this proposed rule change.
Other Restrictions
    The Fund may invest up to 20% of the Fund's assets in non-exchange-
traded investment company securities.
    The Fund may invest up to 15% of the Fund's assets in the aggregate 
in OTC equity-linked notes, OTC rights, OTC warrants, and OTC CVRs.
    The Fund's investments, including derivatives, will be consistent 
with the Fund's investment objective and will not be used to enhance 
leverage (although certain derivatives and other investments may result 
in leverage). That is, while the Fund will be permitted to borrow as 
permitted under the 1940 Act, the Fund's investments will not be used 
to seek performance that is the multiple or inverse multiple (e.g., 2Xs 
and 3Xs) of the Fund's primary broad-based securities benchmark index 
(as defined in Form N-1A).\26\
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    \26\ The Fund's broad-based securities benchmark index will be 
identified in a future amendment to the Registration Statement 
following the Fund's first full calendar year of performance.
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The Fund's Use of Derivatives
    Investments in derivative instruments will be made in accordance 
with the Fund's investment objective and policies.
    To limit the potential risk associated with such transactions, the 
Fund will enter into offsetting transactions or segregate or 
``earmark'' assets determined to be liquid by the Adviser in accordance 
with procedures established by the Trust's Board of Trustees (the 
``Board''). In addition, the Fund has included appropriate risk 
disclosure in its offering documents, including leveraging risk. 
Leveraging risk is the risk that certain transactions of the Fund, 
including the Fund's use of derivatives, may give rise to leverage, 
causing the Fund to be more volatile than if it had not been leveraged.
Creation and Redemption of Shares
    The consideration for a purchase of Creation Units will generally 
be cash, but may consist of an in-kind deposit of a designated 
portfolio of equity securities and other investments (the ``Deposit 
Instruments'') and an amount of cash computed as described below (the 
``Cash Amount'') under some circumstances. The Cash Amount together 
with the Deposit Instruments, as applicable, are referred to as the 
``Portfolio Deposit,'' which represents the minimum initial and 
subsequent investment amount for a Creation Unit of the Fund. The size 
of a Creation Unit will be 50,000 Shares and will be subject to change.
    In the event the Fund requires Deposit Instruments and a Cash 
Amount in consideration for purchasing a Creation Unit, the function of 
the Cash Amount is to compensate for any differences between the net 
asset value (``NAV'') per Creation Unit and the Deposit Amount (as 
defined below). The Cash Amount would be an amount equal to the 
difference between the NAV of the Shares (per Creation Unit) and the 
``Deposit Amount,'' which is an amount equal to the aggregate market 
value of the Deposit Instruments. If the Cash Amount is a positive 
number (the NAV per Creation Unit exceeds the Deposit Amount), the 
Authorized Participant will deliver the Cash Amount. If the Cash Amount 
is a negative number (the NAV per Creation Unit is less than the 
Deposit Amount), the Authorized Participant will receive the Cash 
Amount. The Administrator, through the National Securities Clearing 
Corporation (``NSCC''), will make available on each business day, 
immediately prior to the opening of business on the Exchange (currently 
9:30 a.m. Eastern time (``E.T.'')), the list of the names and the 
required number of shares of each Deposit Instrument to be included in 
the current Portfolio Deposit (based on information at the end of the 
previous business day), as well as information regarding the Cash 
Amount for the Fund.
    The identity and number of the Deposit Instruments and Cash Amount 
required for the Portfolio Deposit for the Fund changes as rebalancing 
adjustments and corporate action events are reflected from time to time 
by the Adviser with a view to the investment objective of the Fund. In 
addition, the Trust reserves the right to accept a basket of securities 
or cash that differs from Deposit Instruments or to permit the 
substitution of an amount of cash (i.e., a ``cash in lieu'' amount) to 
be added to the Cash Amount to replace any Deposit Instrument which 
may, among other reasons, not be available in sufficient quantity for 
delivery, not be permitted to be re-registered in the name of the Trust 
as a result of an in-kind creation order pursuant to local law or 
market convention or for other reasons as described in the Registration 
Statement, or which may not be eligible for trading by a Participating 
Party (defined below).
Procedures for Creation of Creation Units
    To be eligible to place orders with the Distributor to create 
Creation Units of the Fund, an entity or person either must be (1) a 
``Participating Party,'' i.e., a broker-dealer or other participant in 
the clearing process through the Continuous Net Settlement System of 
the NSCC; or (2) a Depositary Trust Company (``DTC'') Participant, 
which, in either case, must have executed an agreement with the 
Distributor (``Participant Agreement''). Such Participating Party and 
DTC Participant are collectively referred to as an ``Authorized 
Participant.'' All orders to create Creation Units must be received by 
the Distributor no later than the closing time of the regular trading 
session on the Exchange (``Closing Time'') (ordinarily 4:00 p.m. E.T.), 
in each case on the date such order is placed in order for creation of 
Creation Units to be effected based on the NAV of the Fund as 
determined on such date.
Redemption of Creation Units
    Shares may be redeemed only in Creation Units at their NAV next 
determined after receipt of a redemption request in proper form by the 
Distributor, only on a business day and only through a Participating 
Party or DTC Participant who has executed a Participant Agreement. All 
orders to redeem Creation Units must be received by the Distributor no 
later than the Exchange Closing Time (ordinarily 4:00 p.m. E.T.).
    Although the Fund will generally pay redemption proceeds in cash, 
there may be instances when it will make redemptions in-kind.\27\ In 
these instances, the Administrator, through NSCC, makes available 
immediately prior to the opening of business on the Exchange (currently 
9:30 a.m. E.T.) on each day that the Exchange is open for business, the 
identity of the Fund's assets and/or an amount of cash that will be 
applicable (subject to possible amendment or correction) to redemption 
requests received in proper form on that day. With respect to 
redemptions in-kind, the redemption proceeds for a Creation Unit 
generally consist of ``Redemption Instruments'' (which are securities 
received on redemption) as announced by the Administrator on the 
business day of the request for redemption, plus cash in an amount 
equal to the difference between the NAV of the Shares being

[[Page 34461]]

redeemed, as next determined after a receipt of a request in proper 
form, and the value of the Redemption Instruments.
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    \27\ The Adviser represents that, to the extent the Trust 
effects the creation or redemption of Shares in cash, such 
transactions will be effected in the same manner for all Authorized 
Participants.
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Disclosed Portfolio
    The Fund's disclosure of derivative positions in the applicable 
Disclosed Portfolio includes information that market participants can 
use to value these positions intraday. On a daily basis, the Fund will 
disclose the information regarding the Disclosed Portfolio required 
under NYSE Arca Rule 8.600-E(c)(2) to the extent applicable. The Fund's 
website information will be publicly available at no charge.
Impact on Arbitrage Mechanism
    The Adviser believes there will be minimal impact to the arbitrage 
mechanism as a result of the use of derivatives. Market makers and 
participants should be able to value derivatives as long as the 
positions are disclosed with relevant information. The Adviser believes 
that the price at which Shares trade will continue to be disciplined by 
arbitrage opportunities created by the ability to purchase or redeem 
Shares at their NAV, which should ensure that Shares will not trade at 
a material discount or premium in relation to their NAV.
    The Adviser does not believe there will be any significant impacts 
to the settlement or operational aspects of the Fund's arbitrage 
mechanism due to the use of derivatives. Because derivatives generally 
are not eligible for in-kind transfer, they will typically be 
substituted with a ``cash in lieu'' amount when the Fund processes 
purchases or redemptions of creation units in-kind.
Application of Generic Listing Requirements
    The Exchange is submitting this proposed rule change because the 
portfolio for the Fund will not meet all of the ``generic'' listing 
requirements of Commentary .01 to NYSE Arca Rule 8.600-E applicable to 
the listing of Managed Fund Shares. The Fund's portfolio would meet all 
such requirements except for those set forth in NYSE Arca Rule 8.600-E, 
Commentary .01(a)(1)(E) and .01(a)(2)(E) regarding OTC equity-linked 
notes, OTC rights, OTC warrants, and OTC CVRs; Commentary .01(a)(1) 
regarding non-exchange-traded investment company securities; and 
Commentary .01(b)(4) \28\ regarding Private ABS/MBS.
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    \28\ Commentary .01(b)(4) provides that component securities 
that in the aggregate account for at least 90% of the fixed income 
weight of the portfolio must be either: (a) From issuers that are 
required to file reports pursuant to Sections 13 and 15(d) of the 
Act; (b) from issuers that have a worldwide market value of its 
outstanding common equity held by non-affiliates of $700 million or 
more; (c) from issuers that have outstanding securities that are 
notes, bonds debentures, or evidence of indebtedness having a total 
remaining principal amount of at least $1 billion; (d) exempted 
securities as defined in Section 3(a)(12) of the Act; or (e) from 
issuers that are a government of a foreign country or a political 
subdivision of a foreign country.
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    With respect to Commentary .01(a)(1)(E) and .01(a)(2)(E) to NYSE 
Arca Rule 8.600-E, as noted above, the Fund may hold OTC equity-linked 
notes, OTC rights, OTC warrants, and OTC CVRs, which are deemed non-
exchange-traded equity securities for purposes of this filing.\29\ 
Because such securities are not listed on a national securities 
exchange or an exchange that has last-sale reporting, such securities 
would not meet the criteria of Commentary .01(a)(1)(E) and (a)(2)(E) to 
NYSE Arca Rule 8.600-E applicable to U.S. Component Stocks and Non-U.S. 
Component Stocks. As noted above, the Fund may invest up to 15% of the 
Fund's assets in the aggregate in OTC equity-linked notes, OTC rights, 
OTC warrants, and OTC CVRs. The Exchange believes that this limitation 
is appropriate in that OTC equity-linked notes, OTC rights, OTC 
warrants, and OTC CVRs are providing debt or equity-oriented exposures 
or are received in connection with the Fund's previous investment in 
fixed income securities or equities. With respect to OTC CVRs, the 
Adviser represents that the Fund will not actively invest in such 
securities but may, at times, receive a distribution of such securities 
in connection with the Fund's holdings in other securities. Therefore, 
the Fund's holdings in OTC CVRs, if any, would not be utilized to 
further the Fund's investment objective and would not be acquired as 
the result of the Fund's voluntary investment decisions.\30\ All of the 
other equity securities held by the Fund (with the exception of non-
exchange-traded investment company securities, as discussed below) will 
comply with the generic requirements Commentary .01(a)(1) and (a)(2) to 
NYSE Arca Rule 8.600-E.
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    \29\ Commentary .01(a) to NYSE Arca Rule 8.600-E provides 
criteria applicable to exchange-traded equity securities held by a 
series of Managed Fund Shares. Among such criteria, equity 
securities that are U.S. Component Stocks as described in NYSE Arca 
Rule 5-2-E(j)(3) shall be listed on a national securities exchange 
and shall be NMS Stocks as defined in Rule 600 of Regulation NMS 
under the Act (with a limited exception for certain ADRs). Equity 
securities that are Non-U.S. Component Stocks as described in NYSE 
Arca Rule 5-2-E(j)(3) shall be listed and traded on an exchange that 
has last-sale reporting.
    \30\ The Commission has previously approved listing and trading 
of series of Managed Fund Shares that hold OTC equity securities 
such as common stocks, rights, warrants and CVRs. See, e.g., 
Securities Exchange Act Release Nos. 77904 (May 25, 2016) (SR-
NYSEArca-2016-17) (Notice of Filing of Amendment No. 3 and Order 
Granting Accelerated Approval of a Proposed Rule Change, as Modified 
by Amendment No. 3, to List and Trade of Shares of the JPMorgan 
Diversified Alternative ETF under NYSE Arca Equities Rule 8.600); 
79683 (December 23, 2016) (SR-NYSEArca-2016-82) (Order Granting 
Approval of a Proposed Rule Change, as Modified by Amendment Nos. 1, 
2, and 3 Thereto, to List and Trade Shares of the JPMorgan 
Diversified Event Driven ETF under NYSE Arca Equities Rule 8.600 
82492 (January 12, 2018) (SR-NYSEArca-2017-87) (Order Granting 
Approval of a Proposed Rule Change, as Modified by Amendment No. 6, 
to List and Trade Shares of the JPMorgan Long/Short ETF under NYSE 
Arca Rule 8.600-E).
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    The Fund may invest in non-exchange-traded investment company 
securities, which are equity securities. Because such securities must 
satisfy applicable 1940 Act diversification requirements, and have a 
net asset value based on the value of securities and financial assets 
the investment company holds, it is both unnecessary and inappropriate 
to apply to such investment company securities the criteria in 
Commentary .01(a)(1). As noted above, the Fund may invest up to 20% of 
the Fund's assets in non-exchange-traded investment company securities. 
The Fund's investment in shares of non-exchange-traded open-end 
management investment company securities will be utilized in order to 
obtain income on short-term cash balances while awaiting attractive 
investment opportunities, to provide liquidity in preparation for 
anticipated redemptions or for defensive purposes, which will allow the 
Fund to obtain the benefits of a more diversified portfolio available 
in the shares of non-exchange-traded open-end management investment 
company securities than might otherwise be available. Moreover, such 
investments, which may include mutual funds that invest, for example, 
principally in fixed income securities, would be utilized to help the 
Fund meet its investment objective and to equitize cash in the short 
term. The Fund will invest in such securities only to the extent that 
those investments would be consistent with the requirements of Section 
12(d)(1) of the 1940 Act and the rules thereunder.
    The Exchange notes that Commentary .01(a)(1)(A) through (D) to Rule 
8.600-E exclude application of those provisions to certain ``Derivative 
Securities Products'' that are exchange-traded investment company 
securities, including Investment Company Units (as described in NYSE 
Arca Rule 5.2-E(j)(3)), Portfolio Depositary Receipts (as

[[Page 34462]]

described in NYSE Arca Rule 8.100-E) and Managed Fund Shares (as 
described in NYSE Arca Rule 8.600-E).\31\ In its 2008 Approval Order 
approving amendments to Commentary .01(a) to Rule 5.2(j)(3) that 
exclude Derivative Securities Products from certain provisions of 
Commentary .01(a) (which exclusions are similar to those in Commentary 
.01(a)(1) to Rule 8.600-E), the Commission stated that ``based on the 
trading characteristics of Derivative Securities Products, it may be 
difficult for component Derivative Securities Products to satisfy 
certain quantitative index criteria, such as the minimum market value 
and trading volume limitations.'' The Exchange notes that it would be 
difficult or impossible to apply to non-exchange-traded investment 
company securities the generic quantitative criteria (e.g., market 
capitalization, trading volume, or portfolio criteria) in Commentary 
.01(a) through (d) applicable to U.S. Component Stocks. For example, 
the requirement for U.S. Component Stocks in Commentary .01(a)(1)(B) 
that there be minimum monthly trading volume of 250,000 shares, or 
minimum notional volume traded per month of $25,000,000, averaged over 
the last six months is tailored to exchange-traded securities (e.g., 
U.S. Component Stocks) and not to mutual fund shares, which do not 
trade in the secondary market. Moreover, application of such criteria 
would not serve its purpose with respect to U.S. Component Stocks, 
namely, to establish minimum liquidity and diversification criteria for 
U.S. Component Stocks held by series of Managed Fund Shares.
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    \31\ The Commission initially approved the Exchange's proposed 
rule change to exclude ``Derivative Securities Products'' (i.e., 
Investment Company Units and securities described in Section 2 of 
Rule 8) and ``Index-Linked Securities (as described in Rule 5.2-
E(j)(6)) from Commentary .01(a)(A)(1) through (4) to Rule 5.2-E(j)(3 
in Securities Exchange Act Release No. 57751 (May 1, 2008), 73 FR 
25818 (May 7, 2008) (SR-NYSEArca-2008-29) (Order Granting Approval 
of a Proposed Rule Change, as Modified by Amendment No. 1 Thereto, 
to Amend the Eligibility Criteria for Components of an Index 
Underlying Investment Company Units) (``2008 Approval Order''). See 
also, Securities Exchange Act Release No. 57561 (March 26, 2008), 73 
FR 17390 (April 1, 2008) (Notice of Filing of Proposed Rule Change 
and Amendment No. 1 Thereto to Amend the Eligibility Criteria for 
Components of an Index Underlying Investment Company Units). The 
Commission subsequently approved generic criteria applicable to 
listing and trading of Managed Fund Shares, including exclusions for 
Derivative Securities Products and Index-Linked Securities in 
Commentary .01(a)(1)(A) through (D), in Securities Exchange Act 
Release No. 78397 (July 22, 2016), 81 FR 49320 (July 27, 2016) 
(Order Granting Approval of Proposed Rule Change, as Modified by 
Amendment No. 7 Thereto, Amending NYSE Arca Equities Rule 8.600 To 
Adopt Generic Listing Standards for Managed Fund Shares). See also, 
Amendment No. 7 to SR-NYSEArca-2015-110, available at https://www.sec.gov/comments/sr-nysearca-2015-110/nysearca2015110-9.pdf.
---------------------------------------------------------------------------

    The Exchange notes that the Commission has previously approved 
listing and trading of an issue of Managed Fund Shares that may invest 
in equity securities that are non-exchange-traded securities of other 
open-end investment company securities notwithstanding that the fund 
would not meet the requirements of Commentary .01(a)(1)(A) through (E) 
to Rule 8.600-E with respect to such fund's investments in such 
securities.\32\ Thus, the Exchange believes that it is appropriate to 
permit the Fund to invest in non-exchange-traded open-end management 
investment company securities, as described above.
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    \32\ See Securities Exchange Act Release No. 83319 (May 24, 
2018), 83 FR 25097 (May 31, 2018) (SR-NYSEArca-2018-15) (Order 
Approving a Proposed Rule Change, as Modified by Amendment No. 1 
Thereto, to Continue Listing and Trading Shares of the PGIM Ultra 
Short Bond ETF Under NYSE Arca Rule 8.600-E).
---------------------------------------------------------------------------

    The Fund will not comply with the requirements in Commentary 
.01(b)(4) to Rule 8.600-E that component securities that in the 
aggregate account for at least 90% of the fixed income weight of the 
portfolio meet one of the criteria specified in Commentary .01(b)(4), 
because certain Private ABS/MBS by their nature cannot satisfy the 
criteria in Commentary .01(b)(4).\33\ Instead, the Exchange proposes 
that the Fund's investments in Fixed Income Instruments other than 
Private ABS/MBS will be required to comply with the requirements of 
Commentary .01(b)(4).\34\ The Exchange believes that excluding Private 
ABS/MBS from the 90% calculation in Commentary .01(b)(4) is consistent 
with the Act because the Fund's portfolio will minimize the risk to the 
overall Fund associated with any particular holding of the Fund as a 
result of the diversification provided by the investments and the 
Adviser's selection process, which closely monitors investments to 
ensure maintenance of credit and liquidity standards. Further, the 
Exchange believes that this alternative limitation is appropriate 
because Commentary .01(b)(4) to Rule 8.600-E is not designed for 
structured finance vehicles such as Private ABS/MBS.\35\
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    \33\ Private ABS/MBS are generally issued by special purpose 
vehicles, so the criteria in Commentary .01(b)(4) to Rule 8.600-E 
regarding an issuer's market capitalization and the remaining 
principal amount of an issuer's securities are typically unavailable 
with respect to Private ABS/MBS, even though such Private ABS/MBS 
may own significant assets.
    \34\ Private ABS/MBS will comply with Commentary .01(b)(5), 
which provides that non-agency, non-government-sponsored entity 
(``GSE'') and privately-issued mortgage-related and other asset-
backed securities components of a portfolio shall not account, in 
the aggregate, for more than 20% of the weight of the portfolio.
    \35\ The Commission has previously approved listing on a 
national securities exchange of a series of Managed Fund Shares that 
principally holds fixed income securities and whose holdings of 
securities similar to Private ABS/MBS (as described herein) do not 
comply with criteria comparable to those included in Commentary 
.01(b)(4) to Rule 8.600-E. See Securities Exchange Act Release No 
85701 (April 22, 2019), 84 FR 17902 (April 26, 2019) (SR-CboeBZX-
2019-016) (Notice of Filing of Amendment No. 1 and Order Granting 
Accelerated Approval of a Proposed Rule Change, as Modified by 
Amendment No. 1, to Allow the JPMorgan Core Plus Bond ETF to Hold 
Certain Instruments in a Manner that May Not Comply with Rule 
14.11(i), Managed Fund Shares).
---------------------------------------------------------------------------

    The Exchange notes that the Commission has previously approved the 
listing of Managed Fund Shares with similar investment objectives and 
strategies without imposing requirements that a certain percentage of 
such funds' securities meet one of the criteria set forth in Commentary 
.01(b)(4).\36\
---------------------------------------------------------------------------

    \36\ See, e.g., Exchange Act Release Nos. 67894 (September 20, 
2012) 77 FR 59227 (September 26, 2012) (SR-BATS-2012-033) (order 
approving the listing and trading of shares of the iShares Short 
Maturity Bond Fund); 70342 (September 6, 2013), 78 FR 56256 
(September 12, 2013) (SR-NYSEArca-2013-71) (order approving the 
listing and trading of shares of the SPDR SSgA Ultra Short Term Bond 
ETF, SPDR SSgA Conservative Ultra Short Term Bond ETF and SPDR SSgA 
Aggressive Ultra Short Term Bond ETF). See also, Securities Exchange 
Act Release Nos. 84047 (September 6, 2018), 83 FR 46200 (September 
12, 2018) (SR-NASDAQ-2017-128) (Notice of Filing of Amendment No. 3 
and Order Granting Accelerated Approval of a Proposed Rule Change, 
as Modified by Amendment No. 3, to List and Trade Shares of the 
Western Asset Total Return ETF); 85022 (January 31, 2019), 25 FR 
2265 (February 6, 2019) (SR-NASDAQ-2018-080) (Notice of Filing of 
Amendment No. 3 and Order Granting Accelerated Approval of a 
Proposed Rule Change, as Modified by Amendment Nos. 1, 2 and 3, To 
List and Trade Shares of the BrandywineGLOBAL--Global Total Return 
ETF).
---------------------------------------------------------------------------

    Deviations from the generic requirements are necessary for the Fund 
to achieve its investment objective in a manner that is cost-effective 
and that maximizes investors' returns. Further, the proposed 
alternative requirements are narrowly tailored to allow the Fund to 
achieve its investment objective in manner that is consistent with the 
principles of Section 6(b)(5) of the Act. As a result, it is in the 
public interest to approve listing and trading of Shares of the Fund on 
the Exchange pursuant to the requirements set forth herein.
    The Exchange notes that, other than NYSE Arca Rule 8.600-E, 
Commentary .01(a)(1)(E) and .01(a)(2)(E) regarding OTC equity-linked 
notes, OTC rights, OTC warrants, and OTC CVRs; Commentary .01(a)(1) 
regarding non-exchange-traded investment company securities; and 
Commentary .01(b)(4)

[[Page 34463]]

regarding Private ABS/MBS, as described above, the Fund's portfolio 
will meet all other requirements of Rule 8.600-E, including the generic 
listing requirements in Commentary .01 to Rule 8.600-E.
Availability of Information
    The Fund's website (www.jpmorganfunds.com), which will be publicly 
available prior to the public offering of Shares, will include a form 
of the prospectus for the Fund that may be downloaded. The Fund's 
website will include additional quantitative information updated on a 
daily basis, including, for the Fund, (1) daily trading volume, the 
prior business day's reported closing price, NAV and mid-point of the 
bid/ask spread at the time of calculation of such NAV (the ``Bid/Ask 
Price''),\37\ and a calculation of the premium and discount of the Bid/
Ask Price against the NAV, and (2) data in chart format displaying the 
frequency distribution of discounts and premiums of the daily Bid/Ask 
Price against the NAV, within appropriate ranges, for each of the four 
previous calendar quarters. On each business day, before commencement 
of trading in Shares in the Core Trading Session on the Exchange, the 
Adviser will disclose on the Fund's website the Disclosed Portfolio for 
the Fund as defined in NYSE Arca Rule 8.600-E(c)(2) that will form the 
basis for the Fund's calculation of NAV at the end of the business 
day.\38\
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    \37\ The Bid/Ask Price of the Fund's Shares will be determined 
using the mid-point of the highest bid and the lowest offer on the 
Exchange as of the time of calculation of the Fund's NAV. The 
records relating to Bid/Ask Prices will be retained by the Fund and 
its service providers.
    \38\ Under accounting procedures to be followed by the Fund, 
trades made on the prior business day (``T'') will be booked and 
reflected in NAV on the current business day (``T+1''). Accordingly, 
the Fund will be able to disclose at the beginning of the business 
day the portfolio that will form the basis for the NAV calculation 
at the end of the business day.
---------------------------------------------------------------------------

    Investors can also obtain the Trust's Statement of Additional 
Information (``SAI''), the Fund's Shareholder Reports, and its Form N-
CSR and Form N-SAR, filed twice a year. The Trust's SAI and Shareholder 
Reports are available free upon request from the Trust, and those 
documents and the Form N-CSR and Form N-SAR may be viewed on-screen or 
downloaded from the Commission's website at www.sec.gov.
    Quotation and last sale information for the Shares and for 
portfolio holdings of the Fund that are U.S. exchange-listed, including 
common stocks, preferred stocks, warrants, rights, MLPs, REITs, 
convertible securities, ETFs, closed-end funds, and U.S. exchange-
listed Depositary Receipts will be available via the CTA high speed 
line. Price information for the following U.S. and foreign exchange-
traded securities and financial instruments will be available from the 
exchange on which they are listed: Futures; options on futures; options 
other than options on futures; swaps; CVRs, foreign exchange-traded 
Depositary Receipts and equity-linked notes. Quotation and last sale 
information for exchange-listed options cleared via the Options 
Clearing Corporation will be available via the Options Price Reporting 
Authority. Quotation and last sale information for foreign exchange-
listed equity securities will be available from the exchanges on which 
they trade and from major market data vendors, as applicable. 
Information regarding market price and trading volume for 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.
    Quotation information for OTC options, cash equivalents, swaps, and 
Fixed Income Instruments may be obtained from brokers and dealers who 
make markets in such securities or through nationally recognized 
pricing services through subscription agreements. Forwards and spot 
currency price information will be available from major market data 
vendors. Price information for non-exchange-traded investment company 
securities, OTC equity-linked notes, OTC warrants, OTC rights, OTC 
CVRs, OTC Depositary Receipts, 144A securities, private placement 
securities and restricted securities is available from major market 
data vendors. Price information for certain municipal securities held 
by the Fund is available through Electronic Municipal Market Access 
(``EMMA'') of the Municipal Securities Rulemaking Board (``MSRB'').
    In addition, the PIV, as defined in NYSE Arca Rule 8.600-E(c)(3), 
will be widely disseminated by one or more major market data vendors at 
least every 15 seconds during the Core Trading Session.\39\ The 
dissemination of the PIV, together with the Disclosed Portfolio, will 
allow investors to determine the approximate value of the underlying 
portfolio of the Fund on a daily basis and will provide a close 
estimate of that value throughout the trading day.
---------------------------------------------------------------------------

    \39\ Currently, it is the Exchange's understanding that several 
major market data vendors display and/or make widely available PIVs 
taken from the CTA or other data feeds.
---------------------------------------------------------------------------

Trading Halts
    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.\40\ Trading in Shares of the Fund 
will be halted if the circuit breaker parameters in NYSE Arca Rule 
7.12-E have been reached. Trading also may be halted because of market 
conditions or for reasons that, in the view of the Exchange, make 
trading in the Shares of the Fund inadvisable.
---------------------------------------------------------------------------

    \40\ See NYSE Arca Rule 7.12-E.
---------------------------------------------------------------------------

    Trading in the Shares will be subject to NYSE Arca Rule 8.600-
E(d)(2)(D), which sets forth circumstances under which Shares of the 
Fund may be halted.
Trading Rules
    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. Shares will trade on 
the NYSE Arca Marketplace from 4:00 a.m. to 8:00 p.m. E.T. in 
accordance with NYSE Arca Rule 7.34-E (Early, Core, and Late Trading 
Sessions). The Exchange has appropriate rules to facilitate 
transactions in the Shares during all trading sessions. As provided in 
NYSE Arca Rule 7.6-E, the minimum price variation (``MPV'') for quoting 
and entry of orders in equity securities traded on the NYSE Arca 
Marketplace is $0.01, with the exception of securities that are priced 
less than $1.00 for which the MPV for order entry is $0.0001.
    Except as described herein, the Shares of the Fund will conform to 
the initial and continued listing criteria under NYSE Arca Rule 8.600-
E. The Exchange represents that, for initial and/or continued listing, 
the Fund will be in compliance with Rule 10A-3 \41\ under the Act, as 
provided by NYSE Arca Rule 5.3-E. A minimum of 100,000 Shares of the 
Fund will be outstanding at the commencement of trading on the 
Exchange. The Exchange will obtain a representation from the issuer of 
the Shares of the Fund that the NAV and the Disclosed Portfolio will be 
made available to all market participants at the same time.
---------------------------------------------------------------------------

    \41\ 17 CFR 240 10A-3.
---------------------------------------------------------------------------

Surveillance
    The Exchange represents that trading in the Shares will be subject 
to the existing trading surveillances administered by the Exchange, as 
well as cross-market surveillances

[[Page 34464]]

administered by the Financial Industry Regulatory Authority (``FINRA'') 
on behalf of the Exchange, which are designed to detect violations of 
Exchange rules and applicable federal securities laws.\42\ The Exchange 
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.
---------------------------------------------------------------------------

    \42\ FINRA conducts cross-market surveillances on behalf of the 
Exchange pursuant to a regulatory services agreement. The Exchange 
is responsible for FINRA's performance under this regulatory 
services agreement.
---------------------------------------------------------------------------

    The surveillances referred to above generally focus on detecting 
securities trading outside their normal patterns, which could be 
indicative of manipulative or other violative activity. When such 
situations are detected, surveillance analysis follows and 
investigations are opened, where appropriate, to review the behavior of 
all relevant parties for all relevant trading violations.
    The Exchange or FINRA, on behalf of the Exchange, or both, will 
communicate as needed regarding trading in the Shares, certain 
exchange-listed equity securities, certain futures, and certain 
exchange-traded options with other markets and other entities that are 
members of the Intermarket Surveillance Group (``ISG''), and the 
Exchange or FINRA, on behalf of the Exchange, or both, may obtain 
trading information regarding trading such securities and financial 
instruments from such markets and other entities. In addition, the 
Exchange may obtain information and communicate as needed regarding 
trading in such securities and financial instruments from markets and 
other entities with which the Exchange has in place a comprehensive 
surveillance sharing agreement.\43\ FINRA, on behalf of the Exchange, 
is able to access, as needed, trade information for certain fixed 
income securities held by the Fund reported to FINRA's Trade Reporting 
and Compliance Engine (``TRACE'').
---------------------------------------------------------------------------

    \43\ For a list of the current members of ISG, see 
www.isgportal.org. The Exchange notes that not all components of the 
Disclosed Portfolio for the Fund may trade on markets that are 
members of ISG or with which the Exchange has in place a 
comprehensive surveillance sharing agreement.
---------------------------------------------------------------------------

    In addition, the Exchange also has a general policy prohibiting the 
distribution of material, non-public information by its employees.
    All statements and representations made in this filing regarding 
(a) the description of the portfolio holdings or reference asset, (b) 
limitations on portfolio holdings or reference assets, or (c) the 
applicability of Exchange listing rules specified in this rule filing 
shall constitute continued listing requirements for listing the Shares 
on the Exchange.
    The issuer has represented to the Exchange that it 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 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).
Information Bulletin
    Prior to the commencement of trading, the Exchange will inform its 
Equity Trading Permit (``ETP'') Holders in an Information Bulletin 
(``Bulletin'') of the special characteristics and risks associated with 
trading the Shares of the Fund. Specifically, the Bulletin will discuss 
the following: (1) The procedures for purchases and redemptions of 
Shares in Creation Units (and that Shares are not individually 
redeemable); (2) NYSE Arca 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; (3) the risks involved in 
trading the Shares during the Early and Late Trading Sessions when an 
updated PIV will not be calculated or publicly disseminated; (4) how 
information regarding the PIV and the Disclosed Portfolio is 
disseminated; (5) 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 (6) trading information.
    In addition, the Bulletin will reference that the Fund is subject 
to various fees and expenses described in the Registration Statement. 
The Bulletin will discuss any exemptive, no-action, and interpretive 
relief granted by the Commission from any rules under the Act. The 
Bulletin will also disclose that the NAV for the Shares of the Fund 
will be calculated after 4:00 p.m. E.T. each trading day.
2. Statutory Basis
    The basis under the Act for this proposed rule change is the 
requirement under Section 6(b)(5) \44\ that an exchange have rules that 
are 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, in general, to protect investors and the public interest.
---------------------------------------------------------------------------

    \44\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange believes that the proposed rule change is designed to 
prevent fraudulent and manipulative acts and practices in that the 
Shares will be listed and traded on the Exchange pursuant to the 
initial and continued listing criteria in NYSE Arca Rule 8.600-E. The 
Adviser is not registered as a broker-dealer but is affiliated with a 
broker-dealer and has implemented and will maintain a fire wall with 
respect to such broker-dealer affiliate regarding access to information 
concerning the composition and/or changes to the portfolio. The 
Exchange represents that trading in the Shares will be subject to the 
existing trading surveillances administered by the Exchange, as well as 
cross-market surveillances administered by FINRA on behalf of the 
Exchange, which are designed to detect violations of Exchange rules and 
applicable federal securities laws. The Exchange 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. The Exchange or 
FINRA, on behalf of the Exchange, or both, will communicate as needed 
regarding trading in the Shares, certain exchange-listed equity 
securities, certain futures, and certain exchange-traded options with 
other markets and other entities that are members of the ISG, and the 
Exchange or FINRA, on behalf of the Exchange, or both, may obtain 
trading information regarding trading such securities and financial 
instruments from such markets and other entities. In addition, the 
Exchange may obtain information regarding trading in such securities 
and financial instruments from markets and other entities that are 
members of ISG or with which the Exchange has in place a comprehensive 
surveillance sharing agreement. FINRA, on behalf of the Exchange, is 
able to access, as needed, trade information for certain fixed income 
securities held by the Fund reported to FINRA's TRACE.
    The PIV, as defined in NYSE Arca Rule 8.600-E (c)(3), will be 
widely disseminated by one or more major market data vendors at least 
every 15 seconds during the Core Trading Session. The Fund may hold up 
to an aggregate amount of 15% of its net assets in illiquid assets 
(calculated at the time of investment), deemed illiquid

[[Page 34465]]

by the Adviser, consistent with Commission guidance.
    Except as described herein, the Shares of the Fund will conform to 
the initial and continued listing criteria under NYSE Arca Rule 8.600-
E. The Exchange represents that, for initial and/or continued listing, 
the Fund will be in compliance with Rule 10A-3 under the Act, as 
provided by NYSE Arca Rule 5.3-E. A minimum of 100,000 Shares of the 
Fund will be outstanding at the commencement of trading on the 
Exchange. The Exchange will obtain a representation from the issuer of 
the Shares of the Fund 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. In addition, a large amount 
of information is publicly available regarding the Fund and the Shares, 
thereby promoting market transparency. The Fund's portfolio holdings 
will be disclosed on its website daily after the close of trading on 
the Exchange and prior to the opening of trading on the Exchange the 
following day. On a daily basis, the Fund will disclose the information 
regarding the Disclosed Portfolio required under NYSE Arca Rule 8.600-E 
(c)(2) to the extent applicable. The Fund's website information will be 
publicly available at no charge.
    Investors can also obtain the Trust's SAI, the Fund's Shareholder 
Reports, and its Form N-CSR and Form N-SAR, filed twice a year. The 
Trust's SAI and Shareholder Reports are available free upon request 
from the Trust, and those documents and the Form N-CSR and Form N-SAR 
may be viewed on-screen or downloaded from the Commission's website at 
www.sec.gov.
    The website for the Fund will include a form of the prospectus for 
the Fund and additional data relating to NAV and other applicable 
quantitative information. Moreover, 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 of the Fund. Trading in Shares of the Fund will be 
halted if the circuit breaker parameters in NYSE Arca Rule 7.12-E have 
been reached or because of market conditions or for reasons that, in 
the view of the Exchange, make trading in the Shares inadvisable, and 
trading in the Shares will be subject to NYSE Arca Rule 8.600-
E(d)(2)(D), which sets forth circumstances under which Shares of the 
Fund may be halted. In addition, as noted above, investors will have 
ready access to information regarding the Fund's holdings, the PIV, the 
Disclosed Portfolio, and quotation and last sale information for the 
Shares. The Fund's investments, including derivatives, will be 
consistent with the Fund's investment objective and will not be used to 
enhance leverage (although certain derivatives and other investments 
may result in leverage). That is, while the Fund will be permitted to 
borrow as permitted under the 1940 Act, the Fund's investments will not 
be used to seek performance that is the multiple or inverse multiple 
(e.g., 2Xs and 3Xs) of the Fund's primary broad-based securities 
benchmark index (as defined in Form N-1A).
    With respect to the Fund's investment in Private ABS/MBS, the 
proposed non-compliance with the requirements in Commentary .01(b)(4) 
to Rule 8.600-E that component securities that in the aggregate account 
for at least 90% of the fixed income weight of the portfolio meet one 
of the criteria specified in Commentary .01(b)(4) is appropriate 
because certain Private ABS/MBS by their nature cannot satisfy the 
criteria in Commentary .01(b)(4). Instead, the Exchange proposes that 
the Fund's investments in Fixed Income Instruments other than Private 
ABS/MBS will be required to comply with the requirements of Commentary 
.01(b)(4), and Private ABS/MBS will be limited to 20% of the Fund's 
portfolio. The Exchange believes that excluding Private ABS/MBS from 
the 90% calculation in Commentary .01(b)(4) is consistent with the Act 
because the Fund's portfolio will minimize the risk to the overall Fund 
associated with any particular holding of the Fund as a result of the 
diversification provided by the investments and the Adviser's selection 
process, which closely monitors investments to ensure maintenance of 
credit and liquidity standards. Further, the Exchange believes that 
this alternative limitation is appropriate because Commentary .01(b)(4) 
to Rule 8.600-E is not designed for structured finance vehicles such as 
Private ABS/MBS.
    The Exchange notes that the Commission has previously approved the 
listing of Managed Fund Shares with similar investment objectives and 
strategies without imposing requirements that a certain percentage of 
such funds' securities meet one of the criteria set forth in Commentary 
.01(b)(4).\45\
---------------------------------------------------------------------------

    \45\ See note 37 [sic], supra.
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    The Fund may invest in shares of non-exchange-traded open-end 
management investment company securities, which are equity securities. 
Therefore, the Fund will not comply with the requirements of Commentary 
.01(a)(1) to NYSE Arca Rule 8.600-E (U.S. Component Stocks) with 
respect to its holdings in such equity securities. It is appropriate 
and in the public interest to approve listing and trading of Shares of 
the Fund notwithstanding that the Fund's holdings in such securities 
would not meet the requirements of Commentary .01(a)(1)(A) through (E) 
to Rule 8.600-E. The Fund's investment in non-exchange-traded open-end 
management investment company securities will not exceed 20% of the 
Fund's assets. The Fund's investment in shares of non-exchange-traded 
open-end management investment company securities will be utilized in 
order to obtain income on short-term cash balances while awaiting 
attractive investment opportunities, to provide liquidity in 
preparation for anticipated redemptions or for defensive purposes, 
which will allow the Fund to obtain the benefits of a more diversified 
portfolio available in the shares of non-exchange-traded open-end 
management investment company securities than might otherwise be 
available. Moreover, such investments, which may include mutual funds 
that invest, for example, principally in fixed income securities, would 
be utilized to help the Fund meet its investment objective and to 
equitize cash in the short term. The Fund will invest in such 
securities only to the extent that those investments would be 
consistent with the requirements of Section 12(d)(1) of the 1940 Act 
and the rules thereunder. Because such securities must satisfy 
applicable 1940 Act diversification requirements, and have a net asset 
value based on the value of securities and financial assets the 
investment company holds, it is both unnecessary and inappropriate to 
apply to such investment company securities the criteria in Commentary 
.01(a)(1).
    The Exchange notes that it would be difficult or impossible to 
apply to mutual fund shares certain of the generic quantitative 
criteria (e.g., market capitalization, trading volume, or portfolio 
criteria) in Commentary .01 (A) through (D) applicable to U.S. 
Component Stocks. For example, the requirements for U.S. Component 
Stocks in Commentary .01(a)(1)(B) that there be minimum monthly trading 
volume of 250,000 shares, or minimum notional volume traded per month 
of $25,000,000, averaged over the last six months are tailored to 
exchange-traded securities (i.e., U.S. Component Stocks) and not to 
mutual fund shares, which do not trade in the secondary market

[[Page 34466]]

and for which no such volume information is reported. In addition, 
Commentary .01(a)(1)(A) relating to minimum market value of portfolio 
component stocks, Commentary .01(a)(1)(C) relating to weighting of 
portfolio component stocks, and Commentary .01(a)(1)(D) relating to 
minimum number of portfolio components are not appropriately applied to 
open-end management investment company securities; open-end investment 
companies hold multiple individual securities as disclosed publicly in 
accordance with the 1940 Act, and application of Commentary 
.01(a)(1)(A) through (D) would not serve the purposes served with 
respect to U.S. Component Stocks, namely, to establish minimum 
liquidity and diversification criteria for U.S. Component Stocks held 
by series of Managed Fund Shares.
    To the extent the Fund invests in OTC equity-linked notes, OTC 
rights, OTC warrants, and OTC CVRs, the Fund will not comply with the 
requirements of Commentary .01(a)(1)(E) and .01(a)(2)(E. with respect 
to its holdings in such equity securities. As noted above, the Fund may 
invest up to 15% of the Fund's assets in the aggregate in OTC equity-
linked notes, OTC rights, OTC warrants, and OTC CVRs. The Exchange 
believes that this limitation is appropriate in that OTC warrants, OTC 
rights, OTC equity-linked notes, and OTC CVRs are providing debt or 
equity-oriented exposures or are received in connection with the Fund's 
previous investment in fixed income securities or equities. All of the 
other equity securities held by the Fund will comply with the 
requirements of Commentary .01(a)(1)(E) and (a)(2)(E) to NYSE Arca Rule 
8.600-E. With respect to OTC CVRs, the Adviser represents that the Fund 
will not actively invest in such securities but may, at times, receive 
a distribution of such securities in connection with the Fund's 
holdings in other securities. Therefore, the Fund's holdings in OTC 
CVRs, if any, would not be utilized to further the Fund's investment 
objective and would not be acquired as the result of the Fund's 
voluntary investment decisions.
    The Exchange accordingly believes that it is appropriate and in the 
public interest to approve listing and trading of Shares of the Fund on 
the Exchange notwithstanding that certain investments of the Fund would 
not meet the requirements of Commentary .01(a) and (b)(4) to Rule 
8.600-E, as discussed above. The Exchange notes that, other than NYSE 
Arca Rule 8.600-E, Commentary .01(a)(1)(E) and .01(a)(2)(E) regarding 
OTC equity-linked notes, OTC rights, OTC warrants, and OTC CVRs; 
Commentary .01(a)(1) regarding non-exchange-traded investment company 
securities; and Commentary .01(b)(4) regarding Private ABS/MBS, as 
described above, the Fund's portfolio will meet all other requirements 
of Rule 8.600-E, including the generic listing requirements in 
Commentary .01 to Rule 8.600-E.
    The proposed rule change is designed to perfect the mechanism of a 
free and open market and, in general, to protect investors and the 
public interest in that it will facilitate the listing and trading of 
an additional type of actively-managed exchange-traded product that 
that holds fixed income securities, equity securities and derivatives 
and that will enhance competition among market participants, to the 
benefit of investors and the marketplace. As noted above, the Exchange 
has in place surveillance procedures relating to trading in the Shares 
of the Fund and may obtain information via ISG from other exchanges 
that are members of ISG or with which the Exchange has entered into a 
comprehensive surveillance sharing agreement. In addition, as noted 
above, investors will have ready access to information regarding the 
Fund's holdings, the PIV, the Disclosed Portfolio for the Fund, and 
quotation and last sale information for the Shares of the Fund.

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

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purpose of the Act. The Exchange notes that the 
proposed rule change will facilitate the listing and trading of an 
additional type of actively-managed exchange-traded product that holds 
fixed income securities, equity securities and derivatives and that 
will enhance competition among market participants, to the benefit of 
investors and the marketplace.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were solicited or received with respect to the 
proposed rule change.

III. Discussion and Commission's Findings

    After careful review, the Commission finds that the proposed rule 
change, as modified by Amendment No. 3, is consistent with the Act and 
the rules and regulations thereunder applicable to a national 
securities exchange.\46\ In particular, the Commission finds that the 
proposed rule change, as modified by Amendment No. 3, is consistent 
with Section 6(b)(5) of the Act,\47\ 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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    \46\ 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).
    \47\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    According to the Exchange, other than Commentary .01(a)(1)(E) and 
.01(a)(2)(E) relating to OTC equity-linked notes, OTC rights, OTC 
warrants, and OTC CVRs; Commentary .01(a)(1) relating to non-exchange-
traded investment company securities; and Commentary .01(b)(4) relating 
to Private ABS/MBS, as described above, the Fund will meet all other 
requirements of Rule 8.600-E.
    The Fund's investments in OTC equity-linked notes, OTC rights, OTC 
warrants, and OTC CVRs will not comply with either Commentary 
.01(a)(1)(E) to Rule 8.600-E, which requires the U.S. Component Stocks 
in the portfolio to be listed on a national securities exchange and to 
be NMS Stocks, or Commentary .01(a)(2)(E) to Rule 8.600-E, which 
requires the Non-U.S. Component Stocks in the portfolio to be listed 
and traded on an exchange with last sale reporting. As proposed, the 
Fund may invest up to 15% of the Fund's assets in the aggregate in OTC 
equity-linked notes, OTC rights, OTC warrants, and OTC CVRs. The 
Exchange represents that the Fund will not actively invest in OTC CVRs 
but may, at times, receive a distribution of such securities in 
connection with the Fund's holdings in other securities. The Commission 
believes that the low level of investment by the Fund in such 
securities, i.e., no more than 15% of the Fund's net assets, is not 
likely to make the Shares materially more susceptible to fraudulent or 
manipulative acts and practices.
    With respect to the Fund's investments in shares of non-exchange-
traded open-end management investment company securities, which will 
not comply with Commentary .01(a)(1) to Rule 8.600-E, the Commission 
notes that: (1) Such securities must satisfy applicable 1940 Act 
diversification requirements; and (2)

[[Page 34467]]

the value of such securities is based on the value of securities and 
financial assets held by those investment companies.\48\ The Commission 
therefore believes that the Fund's investments in non-exchange-traded 
open-end management investment company securities would not make the 
Shares susceptible to fraudulent or manipulative acts and practices.
---------------------------------------------------------------------------

    \48\ See supra Section II.C (Application of Generic Listing 
Standards).
---------------------------------------------------------------------------

    In addition, while the Fund will not meet the requirement that 
component securities that in the aggregate account for at least 90% of 
the fixed income weight of the portfolio meet one of the criteria set 
forth in in Commentary .01(b)(4) to Rule 8.600-E, the Commission 
believes that the diversification of the Fund's portfolio, the 
limitation of Private ABS/MBS holdings to 20% of the weight of the 
portfolio, and the fact that the fixed income portion of the portfolio, 
excluding Private ABS/MBS, will comply with Commentary .01(b)(4), 
mitigate manipulation concerns relating to the Shares.
    The Exchange represents that all statements and representations 
made in the filing regarding (a) the description of the portfolio 
holdings or reference assets, (b) limitations on portfolio holdings or 
reference assets, or (c) the applicability of Exchange listing rules 
specified in the rule filing constitute continued listing requirements 
for listing the Shares on the Exchange. In addition, the issuer has 
represented to the Exchange that it 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 \49\ 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).
---------------------------------------------------------------------------

    \49\ The Commission notes that 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.
---------------------------------------------------------------------------

    For the foregoing reasons, the Commission finds that the proposed 
rule change, as modified by Amendment No. 3, is consistent with Section 
6(b)(5) of the Act \50\ and the rules and regulations thereunder 
applicable to a national securities exchange.
---------------------------------------------------------------------------

    \50\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

IV. Solicitation of Comments on Amendment No. 3 to the Proposed Rule 
Change

    Interested persons are invited to submit written data, views, and 
arguments concerning whether Amendment No. 3 is consistent with the 
Act. Comments may be submitted by any of the following methods:

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to rule-comments@sec.gov. Please include 
File Number SR-NYSEArca-2019-36 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NYSEArca-2019-36. This 
file number should be included on the subject line if email is used. To 
help the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's internet website (http://www.sec.gov/rules/sro.shtml). 
Copies of the submission, all subsequent amendments, all written 
statements with respect to the proposed rule change that are filed with 
the Commission, and all written communications relating to the proposed 
rule change between the Commission and any person, other than those 
that may be withheld from the public in accordance with the provisions 
of 5 U.S.C. 552, will be available for website viewing and printing in 
the Commission's Public Reference Room, 100 F Street NE, Washington, DC 
20549, on official business days between the hours of 10:00 a.m. and 
3:00 p.m. Copies of the filing also will be available for inspection 
and copying at the principal office of the Exchange. All comments 
received will be posted without change. Persons submitting comments are 
cautioned that we do not redact or edit personal identifying 
information from comment submissions. You should submit only 
information that you wish to make available publicly. All submissions 
should refer to File Number SR-NYSEArca-2019-36, and should be 
submitted on or before August 8, 2019.

V. Accelerated Approval of Proposed Rule Change, as Modified by 
Amendment No. 3

    The Commission finds good cause to approve the proposed rule 
change, as modified by Amendment No. 3, prior to the thirtieth day 
after the date of publication of notice of the filing of Amendment No. 
3 in the Federal Register. The Commission notes that Amendment No. 3 
clarified the permitted investments of the Fund and the application of 
NYSE Arca Rule 8.600-E, Commentary .01 to the Fund's investments. 
Amendment No. 3 also provided other clarifications and additional 
information to the proposed rule change. The changes and additional 
information in Amendment No. 3 assist the Commission in evaluating the 
Exchange's proposal and in determining that it is consistent with the 
Act. Accordingly, the Commission finds good cause, pursuant to Section 
19(b)(2) of the Act,\51\ to approve the proposed rule change, as 
modified by Amendment No. 3, on an accelerated basis.
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    \51\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------

VI. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\52\ that the proposed rule change (SR-NYSEArca-2019-36), as 
modified by Amendment No. 3 be, and hereby is, approved on an 
accelerated basis.
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    \52\ Id.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\53\
---------------------------------------------------------------------------

    \53\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-15251 Filed 7-17-19; 8:45 am]
 BILLING CODE 8011-01-P


