[Federal Register Volume 87, Number 71 (Wednesday, April 13, 2022)]
[Notices]
[Pages 21993-22001]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-07852]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-94629; File No. SR-NYSEArca-2022-17]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To List and Trade 
Shares of the FMC Excelsior Focus Equity ETF Under Rule 8.900-E 
(Managed Portfolio Shares)

April 7, 2022.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given 
that on April 1, 2022, NYSE Arca, Inc. (``NYSE Arca'' or ``Exchange'') 
filed with the Securities and Exchange Commission (``Commission'') the 
proposed rule change as described in Items I and II below, which Items 
have been prepared by the self-regulatory organization. The Commission 
is publishing this notice to solicit comments on the proposed rule 
change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to list and trade shares of the following 
under Rule 8.900-E (Managed Portfolio Shares): FMC Excelsior Focus 
Equity ETF. The

[[Page 21994]]

proposed rule change is available on the Exchange's website at 
www.nyse.com, at the principal office of the Exchange, and at the 
Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, 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
    NYSE Arca Rule 8.900-E permits the listing and trading, or trading 
pursuant to unlisted trading privileges, of Managed Portfolio Shares, 
which are securities issued by an actively managed open-end investment 
management company.\4\ Rule 8.900-E(b)(1) requires the Exchange to file 
separate proposals under Section 19(b) of the Act before listing and 
trading any series of Managed Portfolio Shares on the Exchange. 
Therefore, the Exchange is submitting this proposal in order to list 
and trade Managed Portfolio Shares of the FMC Excelsior Focus Equity 
ETF (the ``Fund''), a series of the Northern Lights Fund Trust IV (the 
``Trust''), under Rule 8.900-E.
---------------------------------------------------------------------------

    \4\ Rule 8.900-E(c)(1) provides that the term ``Managed 
Portfolio Share'' means a security that (a) represents an interest 
in an investment company registered under the Investment Company Act 
of 1940 (``Investment Company'') organized as an open-end management 
investment company that invests in a portfolio of securities 
selected by the Investment Company's investment adviser consistent 
with the Investment Company's investment objectives and policies; 
(b) is issued in a Creation Unit, or multiples thereof, in return 
for a designated portfolio of instruments (and/or an amount of cash) 
with a value equal to the next determined net asset value and 
delivered to the Authorized Participant (as defined in the 
Investment Company's Form N-1A filed with the Commission) through a 
Confidential Account; (c) when aggregated into a Redemption Unit, or 
multiples thereof, may be redeemed for a designated portfolio of 
instruments (and/or an amount of cash) with a value equal to the 
next determined net asset value delivered to the Confidential 
Account for the benefit of the Authorized Participant; and (d) the 
portfolio holdings for which are disclosed within at least 60 days 
following the end of every fiscal quarter.
---------------------------------------------------------------------------

    The Commission has previously approved or noticed for immediate 
effectiveness the listing and trading on the Exchange of Managed 
Portfolio Shares under NYSE Arca Rule 8.900-E.\5\
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release Nos. 89663 (August 25, 
2020), 85 FR 53868 (August 31, 2020) (SR-NYSEArca-2020-48) (Order 
Approving a Proposed Rule Change, as Modified by Amendment No. 1, To 
List and Trade Shares of Gabelli ETFs Under Rule 8.900-E, Managed 
Portfolio Shares); 90528 (November 30, 2020), 85 FR 78389 (December 
4, 2020) (SR-NYSEArca-2020-80) (Order Approving a Proposed Rule 
Change, as Modified by Amendment No. 2, To List and Trade Shares of 
Alger Mid Cap 40 ETF and Alger 25 ETF Under Rule 8.900-E); and 90683 
(December 16, 2020), 85 FR 83665 (December 22, 2020) (SR-NYSEArca-
2020-94) (Order Approving a Proposed Rule Change, as Modified by 
Amendments No. 1 and No. 2, To List and Trade Shares of the 
AdvisorShares Q Portfolio Blended Allocation ETF and AdvisorShares Q 
Dynamic Growth ETF Under NYSE Arca Rule 8.900-E). See also 
Securities Exchange Act Release No. 92349 (July 19, 2021), 86 FR 
39084 (July 23, 2021) (SR-NYSEArca-2021-54) (Notice of Filing and 
Immediate Effectiveness of Proposed Rule Change to List and Trade 
Shares of the Cambiar Large Cap ETF, Cambiar Small Cap ETF and 
Cambiar SMID ETF) (the ``Cambiar Notice'').
---------------------------------------------------------------------------

Description of the Fund and the Trust
    The shares of the Fund (the ``Shares'') will be issued by the 
Trust, a statutory trust organized under the laws of the state of 
Delaware and registered with the Commission as an open-end management 
investment company.\6\ The investment adviser to the Fund will be First 
Manhattan Co. (the ``Adviser''). Vident Investment Advisory, LLC will 
be the sub-adviser (the ``Sub-Adviser'') for the Fund. Northern Lights 
Distributors, LLC (the ``Distributor'') will serve as the distributor 
for each of the Fund's Shares. All statements and representations made 
in this filing regarding (a) the description of the portfolio or 
reference assets, (b) limitations on portfolio holdings or reference 
assets, or (c) the applicability of Exchange rules shall constitute 
continued listing requirements for listing the Shares on the Exchange, 
as provided under Rule 8.900-E(b)(1).
---------------------------------------------------------------------------

    \6\ The Trust is registered under the Investment Company Act of 
1940 (the ``1940 Act''). On September 24, 2021, the Trust filed a 
registration statement on Form N-1A under the Securities Act of 1933 
(the ``1933 Act'') and the 1940 Act for the Fund (File No. 811-
23603) (``Registration Statement''). The Commission issued an order 
granting exemptive relief to the Trust (``Exemptive Order'') under 
the 1940 Act on March 22, 2022 (Investment Company Act Release No. 
34537). The Exemptive Order was granted in response to the Trust's 
application for exemptive relief (the ``Exemptive Application'') 
(File No. 812-15282). The description of the operation of the Trust 
and the Fund herein is based, in part, on the Registration 
Statement. The Exchange will not commence trading in Shares of the 
Fund until the Registration Statement is effective.
---------------------------------------------------------------------------

    Rule 8.900-E(b)(4) provides that, if the investment adviser to the 
Investment Company issuing Managed Portfolio Shares is registered as a 
broker-dealer or is affiliated with a broker-dealer, such investment 
adviser will erect and maintain a ``fire wall'' between the investment 
adviser and personnel of the broker-dealer or broker-dealer affiliate, 
as applicable, with respect to access to information concerning the 
composition of and/or changes to such Investment Company portfolio and/
or the Creation Basket.\7\ Any person related to the investment adviser 
or Investment Company who makes decisions pertaining to the Investment 
Company's portfolio composition or has access to information regarding 
the Investment Company's portfolio composition or changes thereto or 
the Creation Basket must be subject to procedures designed to prevent 
the use and dissemination of material non-public information regarding 
the applicable Investment Company portfolio or changes thereto or the 
Creation Basket.
---------------------------------------------------------------------------

    \7\ Rule 8.900-E(c)(5) provides that the term ``Creation 
Basket'' means, on any given business day, the names and quantities 
of the specified instruments (and/or an amount of cash) that are 
required for an AP Representative to deposit in-kind on behalf of an 
Authorized Participant in exchange for a Creation Unit and the names 
and quantities of the specified instruments (and/or an amount of 
cash) that will be transferred in-kind to an AP Representative on 
behalf of an Authorized Participant in exchange for a Redemption 
Unit, which will be identical and will be transmitted to each AP 
Representative before the commencement of trading.
---------------------------------------------------------------------------

    Rule 8.900-E(b)(4) is similar to Commentary .03(a)(i) and (iii) to 
Rule 5.2-E(j)(3); however, Commentary .03(a) in connection with the 
establishment of a ``fire wall'' between the investment adviser and the 
broker-dealer reflects the applicable open-end fund's portfolio, not an 
underlying benchmark index, as is the case with index-based funds.\8\ 
Rule 8.900-E(b)(4) is also

[[Page 21995]]

similar to Commentary .06 to Rule 8.600-E related to Managed Fund 
Shares, except that Rule 8.900-E(b)(4) relates to establishment and 
maintenance of a ``fire wall'' between the investment adviser and 
personnel of the broker-dealer or broker-dealer affiliate, as 
applicable, with respect to an Investment Company's portfolio and 
Creation Basket, and not just to the underlying portfolio, as is the 
case with Managed Fund Shares. The Adviser is not registered as a 
broker-dealer but is affiliated with a broker-dealer. The Adviser has 
implemented and will maintain a ``fire wall'' with respect to such 
broker-dealer affiliate regarding access to information concerning the 
composition of and/or changes to the Fund's portfolio and/or Creation 
Basket. The Sub-Adviser is not registered as a broker-dealer or 
affiliated with a broker-dealer.
---------------------------------------------------------------------------

    \8\ 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, Sub-Adviser, and their related 
personnel will be 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 violations, 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. The Fund will also 
be required to comply with Exchange rules relating to disclosure, 
including Rule 5.3-E(i).
---------------------------------------------------------------------------

    In the event (a) the Adviser or Sub-Adviser becomes registered as a 
broker-dealer or becomes newly affiliated with a broker-dealer, or (b) 
any new adviser or sub-adviser is a registered broker-dealer, or 
becomes affiliated with a broker-dealer, it will implement and maintain 
a fire wall with respect to personnel of the broker-dealer or broker-
dealer affiliate regarding access to information concerning the 
composition and/or changes to the portfolio and/or Creation Basket. Any 
person related to the Adviser, Sub-Adviser, or the Trust who makes 
decisions pertaining to the Fund's portfolio composition or that has 
access to information regarding the Fund's portfolio composition or 
that has access to information regarding the Fund's portfolio or 
changes thereto or the Creation Basket will be subject to procedures 
designed to prevent the use and dissemination of material non-public 
information regarding such portfolio or changes thereto and the 
Creation Basket.
    Further, Rule 8.900-E(b)(5) requires that any person or entity, 
including an AP Representative (as defined below), custodian, Reporting 
Authority, distributor, or administrator, who has access to non-public 
information regarding the Investment Company's portfolio composition or 
changes thereto or the Creation Basket, must be subject to procedures 
reasonably designed to prevent the use and dissemination of material 
non-public information regarding the applicable Investment Company 
portfolio or changes thereto or the Creation Basket. Moreover, if any 
such person or entity is registered as a broker-dealer or affiliated 
with a broker-dealer, such person or entity will erect and maintain a 
``fire wall'' between the person or entity and the broker-dealer with 
respect to access to information concerning the composition and/or 
changes to such Investment Company portfolio or Creation Basket.
Description of the Fund 9
---------------------------------------------------------------------------

    \9\ The Exchange represents that, for initial and continued 
listing, the Fund will be in compliance with Rule 10A-3 under the 
Act. See 17 CFR 240.10A-3.
---------------------------------------------------------------------------

    The Fund's holdings will conform to the permissible investments as 
set forth in the Exemptive Application and Exemptive Order, and the 
holdings will be consistent with all requirements in the Exemptive 
Application and Exemptive Order.\10\
---------------------------------------------------------------------------

    \10\ Pursuant to the Exemptive Order, the only permissible 
investments for the Fund are the following that trade on a U.S. 
exchange contemporaneously with Shares of the Fund: exchange-traded 
funds (``ETFs''), exchange-traded notes, exchange-listed common 
stocks, exchange-traded preferred stocks, exchange-traded American 
Depositary Receipts, exchange-traded real estate investment trusts, 
exchange-traded commodity pools, exchange-traded metal trusts, 
exchange-traded currency trusts, and exchange-traded futures for 
which the reference asset is one in which the Fund may invest 
directly, in the case of an index future traded on a U.S. exchange, 
is based on an index, the components of which are a type of asset in 
which the Fund could invest directly, as well as cash and cash 
equivalents (which are short-term U.S. Treasury securities, 
government money market funds, and repurchase agreements). All of 
the equity instruments or futures held by the Fund will be traded on 
an exchange that is a member of the Intermarket Surveillance group 
(``ISG'') or affiliated with a member of ISG or with which the 
Exchange has in place a comprehensive surveillance sharing 
agreement.
---------------------------------------------------------------------------

    The Fund's primary objective is to seek long-term capital 
appreciation. The Fund will primarily invest in U.S. exchange-traded 
common stocks of companies that are listed on U.S. national securities 
exchanges and trade contemporaneously with the Shares. The Fund does 
not have a targeted market capitalization for the common stocks of its 
holdings. The Fund will, during normal market conditions, generally own 
approximately 25 to 30 holdings but may, from time to time, hold a 
greater number of common stocks.
Investment Restrictions
    The Fund's holdings will be consistent with all requirements 
described in the Exemptive Application and Exemptive Order.\11\
---------------------------------------------------------------------------

    \11\ See id.
---------------------------------------------------------------------------

    The Fund's investments, including derivatives, will be consistent 
with its investment objective and will not be used to enhance leverage 
(although certain derivatives and other investments may result in 
leverage). That is, the Fund's investments will not be used to seek 
performance that is the multiple or inverse multiple (e.g., 2X or -3X) 
of the Fund's primary broad-based securities benchmark index (as 
defined in Form N-1A).\12\
---------------------------------------------------------------------------

    \12\ 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.
---------------------------------------------------------------------------

Creations and Redemptions of Shares
    Creations and redemptions of Shares will take place as described in 
Rule 8.900-E. Specifically, in connection with the creation and 
redemption of Creation Units \13\ the delivery or receipt of any 
portfolio securities in-kind will be required to be effected through a 
separate confidential brokerage account (a ``Confidential 
Account'').\14\ An Authorized Participant (``AP''), as defined in the 
applicable Form N-1A filed with the Commission, will sign an agreement 
with an AP Representative \15\ establishing the Confidential Account 
for the benefit of the AP. AP Representatives will be broker-dealers. 
An AP must be a participant in the Continuous Net Settlement System of 
the National Securities Clearing Corporation (``NSCC'') or a 
participant in the Depository Trust Company, and

[[Page 21996]]

must have executed an authorized participant agreement (``Participant 
Agreement'') with the Distributor with respect to the creation and 
redemption of Creation Units and formed a Confidential Account for its 
benefit in accordance with the terms of the Participant Agreement. For 
purposes of creations or redemptions, all transactions will be effected 
through the respective AP's Confidential Account, for the benefit of 
the AP, without disclosing the identity of such securities to the AP.
---------------------------------------------------------------------------

    \13\ Rule 8.900-E(c)(6) provides that the term ``Creation Unit'' 
means a specified minimum number of Managed Portfolio Shares issued 
by an Investment Company at the request of an Authorized Participant 
in return for a designated portfolio of instruments and/or cash. 
Rule 8.900-E(c)(7) provides that the term ``Redemption Unit'' means 
a specified minimum number of Managed Portfolio Shares that may be 
redeemed to an Investment Company at the request of an Authorized 
Participant in return for a portfolio of instruments and/or cash. 
For purposes of this filing, the terms ``Creation Unit'' means 
either a Creation Unit as defined in Rules 8.900-E(c)(6) or a 
Redemption Unit as defined in Rule 8.900-E(c)(7).
    \14\ Rule 8.900-E(c)(4) provides that the term ``Confidential 
Account'' means an account owned by an Authorized Participant and 
held with an AP Representative on behalf of the Authorized 
Participant. The account will be established and governed by 
contractual agreement between the AP Representative and the 
Authorized Participant solely for the purposes of creation and 
redemption, while keeping confidential the Creation Basket 
constituents of each series of Managed Portfolio Shares, including 
from the Authorized Participant. The books and records of the 
Confidential Account will be maintained by the AP Representative on 
behalf of the Authorized Participant.
    \15\ Rule 8.900-E(c)(3) provides that the term ``AP 
Representative'' means an unaffiliated broker-dealer, with which an 
Authorized Participant has signed an agreement to establish a 
Confidential Account for the benefit of such Authorized Participant, 
that will deliver or receive, on behalf of the Authorized 
Participant, all consideration to or from the Investment Company in 
a creation or redemption. An AP Representative will not be permitted 
to disclose the Creation Basket to any person, including the 
Authorized Participants.
---------------------------------------------------------------------------

    Each day, the Fund's custodian will transmit the underlying 
securities of the Fund's Creation Basket (as described below) to each 
AP Representative. This information will permit an AP that has 
established a Confidential Account with an AP Representative to 
transact in the underlying securities of the Creation Basket through 
their AP Representatives, enabling them to engage in in-kind creation 
or redemption activity without knowing the identity or weighting of 
those securities. Fund Shares will be issued and redeemed in Creation 
Units of 5,000 Shares or more. The Fund will offer and redeem Creation 
Units on a continuous basis at the net asset value (``NAV'') per Share 
next determined after receipt of an order in proper form. The Fund's 
NAV will be determined as of the scheduled closing time of the regular 
trading session on the Exchange (ordinarily, 4:00 p.m. E.T.) on each 
day that the Exchange is open.
    In order to keep costs low and permit the Fund to be as fully 
invested as possible, Shares will be purchased and redeemed in Creation 
Units and generally on an in-kind basis. The Fund will issue and redeem 
Creation Units principally in exchange for a basket of securities (the 
``Deposit Securities''), together with the deposit of a specified cash 
payment (the ``Cash Component''). Together, the Deposit Securities and 
Cash Component constitute the ``Portfolio Deposit.'' The Cash Component 
serves the function of compensating for any differences between the NAV 
per Creation Unit and the market value of the Deposit Securities. On 
each business day, prior to the opening of business on the Exchange 
(ordinarily, 9:30 a.m. E.T.), the custodian will make available to the 
AP Representatives through NSCC the name and amount of each Deposit 
Security in the current Portfolio Deposit for the Fund and the 
estimated Cash Component. The Deposit Securities and estimated Cash 
Component, as applicable, announced are applicable to purchases of 
Creation Units until the next announcement of Deposit Securities and 
estimated Cash Component, as applicable. The Fund may permit or require 
the substitute of an amount of cash to be added to the Cash Component 
to replace any Deposit Security. On any given business day, the names 
and quantities of the instruments that constitute the Deposit 
Securities will correspond pro rata to the positions in the Fund's 
portfolio (including cash positions) and, thus, will be identical. 
These instruments may be referred to, in the case of either a purchase 
or a redemption, as the ``Creation Basket.''
Placement of Purchase Orders
    The Fund will issue Shares through the Distributor on a continuous 
basis at NAV. The Exchange represents that the issuance of Shares will 
operate in a manner substantially similar to that of other ETFs, 
including transparent ETFs. The Fund will issue Shares only at the NAV 
per Share next determined after an order in proper form is received.
    The Distributor will furnish acknowledgements to those placing such 
orders that the orders have been accepted, but the Distributor may 
reject any order which is not submitted in proper form, as described in 
the Fund's prospectus or Statement of Additional Information (``SAI''). 
The NAV of the Fund is expected to be determined once each business day 
as of the close of the regular trading session on the Exchange 
(ordinarily, 4:00 p.m. E.T.). An AP must submit an irrevocable purchase 
order no later than the earlier of (i) 4:00 p.m. E.T. or (ii) the 
closing time of the trading session on the Exchange, on any business 
day in order to receive that business day's NAV (``Cut-off Time''). The 
business day the order is deemed received by the Distributor is 
referred to as the ``Transmittal Date.'' An order to create Creation 
Units is deemed received on a business day if (i) such order is 
received by the Distributor by the Cut-off Time on such day and (ii) 
all other procedures set forth in the Participant Agreement are 
properly followed. In purchasing the necessary securities, the AP 
Representative will use methods, such as breaking the transaction into 
multiple transactions and transacting in multiple marketplaces, to 
avoid revealing the composition of the Creation Basket.
    Purchases of Shares will be settled in-kind and/or in cash for an 
amount equal to the applicable NAV per Share purchased plus applicable 
transaction fees.\16\ Other than the Cash Component, the Fund will 
substitute cash only under circumstances that are in the best interests 
of the Fund and as set forth under the Fund's policies and procedures 
governing the composition of Creation Baskets.
---------------------------------------------------------------------------

    \16\ To the extent that the Fund allows creations or redemptions 
to be conducted in cash, such transactions will be effected in the 
same manner for all APs transacting in cash.
---------------------------------------------------------------------------

Authorized Participant Redemption
    The Shares may be redeemed to the Fund in Creation Unit size or 
multiples thereof as described below. Redemption orders of Creation 
Units must be placed by or through an AP. Creation Units of the Fund 
will be redeemable at their NAV per Share next determined after receipt 
of a request for redemption by the Trust in the manner specified below 
before the Cut-off Time. To initiate a redemption Order, an AP must 
submit to the Distributor an irrevocable order to redeem such Creation 
Unit no later than the Cut-off Time on the Transmittal Date. A 
transaction fee may be imposed to offset costs associated with 
redemption orders.
    To redeem a Creation Unit, an AP must submit an irrevocable 
redemption request to the Distributor no later than the Cut-off Time. 
The Fund would then instruct its custodian to deliver a designated 
portfolio of securities (``Redemption Instruments'') to the appropriate 
Confidential Account in exchange for the Creation Units being redeemed. 
The AP will instruct the AP Representative when to liquidate the 
securities in the Confidential Account. As with purchase orders, the 
business day the order is deemed received by the Distributor is 
referred to as the Transmittal Date. A redemption request is deemed 
received if (i) such order is received by the Distributor by the Cut-
off Time on such day and (ii) all other procedures set forth in the 
Participant Agreement are properly followed. In response to a 
redemption request, the Fund will instruct the custodian to deliver an 
in-kind basket of designated securities (the ``Redemption Securities'') 
and a Cash Component (together, the ``Redemption Basket'') to the 
appropriate Confidential Account. The Cash Component serves the 
function of compensating for any differences between the NAV per 
Creation Unit and the Redemption Securities. The AP would direct the AP 
Representative on that day to liquidate those securities. As with the 
purchase of securities, the AP Representative will use methods, such as 
breaking the transaction into multiple transactions and transacting in 
multiple marketplaces, to avoid revealing the composition of the 
Redemption Basket.
    Redemptions will occur primarily in-kind, although redemption 
payments may also be made partly or wholly in cash. The Fund may permit 
or require

[[Page 21997]]

the substitution of cash to be added to the Cash Component to replace 
any Redemption Security. The Participant Agreement signed by each AP 
will require establishment of a Confidential Account to receive 
distributions of securities in-kind upon redemption. Each AP will be 
required to open a Confidential Account with an AP Representative in 
order to facilitate orderly processing of redemptions.
Net Asset Value
    The NAV will be calculated for the Shares of the Fund on each 
business day. The Fund's NAV is determined as of the close of regular 
trading on the Exchange, normally 4:00 p.m., E.T. The NAV of the Fund's 
Shares is determined by dividing the total value of the Fund's assets, 
less any liabilities, by the total number of Shares outstanding of the 
Fund at the time the determination is made.
    Generally, the Fund's portfolio securities are valued each day at 
the last quoted sales price on each security's primary exchange. 
Securities traded or dealt in upon one or more securities exchanges for 
which market quotations are readily available and not subject to 
restrictions against resale shall be valued at the last quoted sales 
price on the primary exchange or, in the absence of a sale on the 
primary exchange, at the mean between the current bid and ask prices on 
such exchange. Securities primarily traded in the NASDAQ National 
Market System for which market quotations are readily available shall 
be valued using the NASDAQ Official Closing Price. If market quotations 
are not readily available, securities will be valued at their fair 
market value as determined in good faith by the Fund's fair value 
committee in accordance with procedures approved by the Board. 
Securities that are not traded or dealt in any securities exchange 
(whether domestic or foreign) and for which over-the-counter market 
quotations are readily available generally shall be valued at the last 
sale price or, in the absence of a sale, at the mean between the 
current bid and ask price on such over-the- counter market.
    More information about the valuation of the Fund's holdings can be 
found in the SAI.
    Information regarding the Fund's NAV and how often Shares of the 
Fund traded at a price above (i.e., at a premium) or below (i.e., at a 
discount) the Fund's NAV will be available on the Fund's website 
(www.FMCX.com).
Availability of Information
    The Fund's website, www.FMCX.com, will include the prospectus for 
the Fund that may be downloaded. The Fund's website will include 
additional quantitative information updated on a daily basis, including 
the prior business day's NAV, market closing price or mid-point of the 
bid/ask spread at the time of calculation of such NAV (the ``Bid/Ask 
Price''),\17\ and a calculation of the premium and discount of the 
market closing price or Bid/Ask Price against the NAV. The website and 
information will be publicly available at no charge.
---------------------------------------------------------------------------

    \17\ The Bid/Ask Price of the Fund's Shares is determined using 
the mid-point between the current national best bid and offer at the 
time of calculation of the Fund's NAV. The records relating to Bid/
Ask Prices will be retained by the Fund or their service providers.
---------------------------------------------------------------------------

    Form N-PORT requires reporting of a Fund's complete portfolio 
holdings on a position-by-position basis on a quarterly basis within 60 
days after fiscal quarter end. Investors can obtain a Fund's SAI, its 
shareholder reports, its Form N-CSR, filed twice a year, and its Form 
N-CEN, filed annually. The Fund's SAI and shareholder reports are 
available free upon request from the Fund, and those documents and the 
Form N-PORT, Form N-CSR, and Form N-CEN may be viewed onscreen or 
downloaded from the Commission's website at www.sec.gov.
    Information regarding market price and trading volume of the Shares 
will be continually available on a real-time basis throughout the day 
on brokers' computer screens and other electronic services. Information 
regarding the previous day's closing price and trading volume 
information for the Shares will be published daily in the financial 
section of newspapers. Quotation and last sale information for the 
Shares will be available via the Consolidated Tape Association 
(``CTA'') high-speed line. In addition, the Verified Intraday 
Indicative Value (``VIIV''), as defined in Rule 8.900-E(c)(2),\18\ will 
be widely disseminated by the Reporting Authority \19\ and/or one or 
more major market data vendors in one second intervals during the 
Exchange's Core Trading Session and will be available to all market 
participants at the same time.
---------------------------------------------------------------------------

    \18\ Rule 8.900-E(c)(2) provides that the term ``Verified 
Intraday Indicative Value'' is the indicative value of a Managed 
Portfolio Share based on all of the holdings of a series of Managed 
Portfolio Shares as of the close of business on the prior business 
day and, for corporate actions, based on the applicable holdings as 
of the opening of business on the current business day, priced and 
disseminated in one second intervals during the Exchange's Core 
Trading Session by the Reporting Authority.
    \19\ Rule 8.900-E(c)(8) provides that the term ``Reporting 
Authority'' in respect of a particular series of Managed Portfolio 
Shares means the Exchange, an institution, or a reporting service 
designated by the Exchange or by the exchange that lists a 
particular series of Managed Portfolio Shares (if the Exchange is 
trading such series pursuant to unlisted trading privileges), as the 
official source for calculating and reporting information relating 
to such series, including, but not limited to, the NAV, the VIIV, or 
other information relating to the issuance, redemption, or trading 
of Managed Portfolio Shares. A series of Managed Portfolio Shares 
may have more than one Reporting Authority, each having different 
functions.
---------------------------------------------------------------------------

Dissemination of the VIIV
    With respect to trading of the Shares, the ability of market 
participants to buy and sell Shares at prices near the VIIV is 
dependent upon their assessment that the VIIV is a reliable, indicative 
real-time value for the Fund's underlying holdings. Market participants 
are expected to accept the VIIV as a reliable, indicative real-time 
value because (1) the VIIV will be calculated and disseminated based on 
the Fund's actual portfolio holdings, (2) the securities in which the 
Fund plans to invest are generally highly liquid and actively traded 
and trade at the same time as the Fund and therefore generally have 
accurate real time pricing available, and (3) market participants will 
have a daily opportunity to evaluate whether the VIIV at or near the 
close of trading is indeed predictive of the actual NAV.
    The VIIV will be widely disseminated by the Reporting Authority 
and/or by one or more major market data vendors in one second intervals 
during the Exchange's Core Trading Session. The VIIV is based on the 
current market value of the securities in the Fund's portfolio that 
day. The methodology for calculating the Fund's VIIV is available on 
the Fund's website. The VIIV is intended to provide investors and other 
market participants with a highly correlated per Share value of the 
underlying portfolio that can be compared to the current market price. 
Therefore, under normal circumstances the VIIV would be effectively a 
near real time approximation of the Fund's NAV, available free of 
charge from one or more market data vendors, which is computed only 
once a day.
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.\20\ Trading in Shares of the Fund 
will be halted if the circuit breaker parameters in 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 inadvisable. Trading in the Shares will be subject to Rule 
8.900-E(d)(2)(C), which sets forth circumstances under

[[Page 21998]]

which trading in the Shares of the Fund will be halted.
---------------------------------------------------------------------------

    \20\ See Rule 7.12-E.
---------------------------------------------------------------------------

    Specifically, Rule 8.900-E(d)(2)(C)(i) provides that the Exchange 
may consider all relevant factors in exercising its discretion to halt 
trading in a series of Managed Portfolio Shares. Trading may be halted 
because of market conditions or for reasons that, in the view of the 
Exchange, make trading in the series of Managed Portfolio Shares 
inadvisable. These may include: (a) The extent to which trading is not 
occurring in the securities and/or the financial instruments composing 
the portfolio; or (b) whether other unusual conditions or circumstances 
detrimental to the maintenance of a fair and orderly market are 
present.\21\
---------------------------------------------------------------------------

    \21\ The Exemptive Application provides that the Investment 
Company or their agent will request that the Exchange halt trading 
in the applicable series of Managed Portfolio Shares where: (i) The 
intraday indicative values calculated by the calculation engines 
differ by more than 25 basis points for 60 seconds in connection 
with pricing of the VIIV; or (ii) holdings representing 10% or more 
of a series of Managed Portfolio Shares' portfolio have become 
subject to a trading halt or otherwise do not have readily available 
market quotations. Any such requests will be one of many factors 
considered in order to determine whether to halt trading in a series 
of Managed Portfolio Shares and the Exchange retains sole discretion 
in determining whether trading should be halted. As provided in the 
Exemptive Application, each series of Managed Portfolio Shares would 
employ a pricing verification agent to continuously compare two 
intraday indicative values during regular trading hours in order to 
ensure the accuracy of the VIIV.
---------------------------------------------------------------------------

    Rule 8.900-E(d)(2)(C)(ii) provides that, if the Exchange becomes 
aware that: (i) The VIIV of a series of Managed Portfolio Shares is not 
being calculated or disseminated in one second intervals, as required; 
(ii) the NAV with respect to a series of Managed Portfolio Shares is 
not disseminated to all market participants at the same time; (iii) the 
holdings of a series of Managed Portfolio Shares are not made available 
on at least a quarterly basis as required under the 1940 Act; or (iv) 
such holdings are not made available to all market participants at the 
same time (except as otherwise permitted under the currently applicable 
exemptive order or no-action relief granted by the Commission or 
Commission staff to the Investment Company with respect to the series 
of Managed Portfolio Shares), it will halt trading in such series until 
such time as the Verified Intraday Indicative Value, the NAV, or the 
holdings are available, as required.
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 Exchange in all trading sessions in accordance with Rule 7.34-E(a). 
As provided in 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. A 
minimum of 100,000 Shares of the Fund will be outstanding at the 
commencement of trading on the Exchange.
    The Shares will conform to the initial and continued listing 
criteria under Rule 8.900-E, as well as all terms in the Exemptive 
Order. The Exchange will obtain a representation from the issuer of the 
Shares of the Fund that the NAV per Share of the Fund will be 
calculated daily and will be made available to all market participants 
at the same time.
Surveillance
    The Exchange believes that its surveillance procedures are adequate 
to properly monitor the trading of Shares on the Exchange during all 
trading sessions and to deter and detect violations of Exchange rules 
and the applicable federal securities laws. Trading of Shares through 
the Exchange will be subject to the Exchange's surveillance procedures 
for derivative products. As part of these surveillance procedures and 
consistent with Rule 8.900-E(b)(3) and 8.900-E(d)(2)(B), the Adviser 
will upon request make available to the Exchange and/or the Financial 
Industry Regulatory Authority (``FINRA''), on behalf of the Exchange, 
the daily portfolio holdings of the Fund. The issuer of the Shares of 
the Fund will be required to represent 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 Exchange Act, the Exchange will surveil 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 Exchange Rule 5.5-E(m).
    FINRA, on behalf of the Exchange, or the regulatory staff of the 
Exchange, or both, will communicate as needed regarding trading in the 
Shares and certain exchange-traded instruments with other markets and 
other entities that are members of the ISG, and FINRA, on behalf of the 
Exchange, or the regulatory staff of the Exchange, or both, may obtain 
trading information regarding trading such securities from such markets 
and other entities. In addition, the Exchange may obtain information 
regarding trading in the Shares and certain exchange-traded instruments 
from markets and other entities 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.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\22\ in general, and furthers the 
objectives of Section 6(b)(5) of the Act,\23\ in particular, in that it 
is 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.
---------------------------------------------------------------------------

    \22\ 15 U.S.C. 78f(b).
    \23\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange believes that this proposed rule change is designed to 
prevent fraudulent and manipulative acts and practices in that the Fund 
would meet each of the rules relating to listing and trading of Managed 
Portfolio Shares. To the extent that the Fund is not in compliance with 
such rules, the Exchange would either prevent the Fund from listing and 
trading on the Exchange or commence delisting procedures under Rule 
8.900-E(d)(2)(B). Specifically, the Exchange would consider the 
suspension of trading, and commence delisting proceedings under Rule 
8.900-E(d)(2)(B), of the Fund under any of the following circumstances: 
(a) If, following the initial twelve-month period after commencement of 
trading on the Exchange, there are fewer than 50 beneficial holders of 
the Fund; (b) if the Exchange has halted trading in the Fund because 
the VIIV is interrupted pursuant to Rule 8.900-E(d)(2)(C)(ii) and such 
interruption persists past the trading day in which it occurred or is 
no longer available; (c) if the Exchange has halted trading in the Fund 
because the NAV with respect to such Fund is not disseminated to all 
market participants at the same time, the holdings of such Fund are not 
made available on at least a quarterly basis as required under the 1940 
Act, or such holdings are not made available to all market participants 
at the same time pursuant to Rule 8.900-E(d)(2)(C)(ii) and such issue 
persists past the trading day in which it occurred; (d) if the Exchange 
has halted

[[Page 21999]]

trading in Shares of the Fund pursuant to Rule 8.900-E(d)(2)(C)(i) and 
such issue persists past the trading day in which it occurred; (e) if 
the Fund has failed to file any filings required by the Commission or 
if the Exchange is aware that the Fund is not in compliance with the 
conditions of any currently applicable exemptive order or no-action 
relief granted by the Commission or Commission staff with respect to 
the Fund; (f) if any of the continued listing requirements set forth in 
Rule 8.900-E are not continuously maintained; (g) if any of the 
statements of representations regarding (a) the description of the 
portfolio, (b) limitations on portfolio holdings, or (c) the 
applicability of Exchange listing rules as specified herein to permit 
the listing and trading of the Fund, are not continuously maintained; 
or (h) if such other event shall occur or condition exists which, in 
the opinion of the Exchange, makes further dealings on the Exchange 
inadvisable.
    As discussed above, 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 affiliate broker-
dealer regarding access to information concerning the composition and/
or changes to the Fund's portfolio and Creation Basket. The Sub-Adviser 
is neither registered as a broker-dealer nor affiliated with a broker-
dealer. In the event that (a) the Adviser or Sub-Adviser becomes 
registered as a broker-dealer or becomes newly affiliated with a 
broker-dealer, or (b) any new adviser or sub-adviser is a registered 
broker-dealer or becomes affiliated with a broker-dealer, the Adviser 
or Sub-Adviser, as applicable, will implement and maintain a fire wall 
with respect to personnel of the broker-dealer or broker-dealer 
affiliate regarding access to information concerning the composition 
and/or changes to the portfolio and/or Creation Basket. Any person 
related to the Adviser, Sub-Adviser, or the Trust who makes decisions 
pertaining to the Fund's portfolio composition or that has access to 
information regarding the Fund's portfolio or changes thereto or the 
Creation Basket will be subject to procedures designed to prevent the 
use and dissemination of material non-public information regarding such 
portfolio or changes thereto and the Creation Basket.
    In addition, Rule 8.900-E(b)(5) requires that any person or entity, 
including an AP Representative, custodian, Reporting Authority, 
distributor, or administrator, who has access to non-public information 
regarding the Investment Company's portfolio composition or changes 
thereto or the Creation Basket, must be subject to procedures designed 
to prevent the use and dissemination of material non-public information 
regarding the applicable Investment Company portfolio or changes 
thereto or the Creation Basket. Moreover, if any such person or entity 
is registered as a broker-dealer or affiliated with a broker-dealer, 
such person or entity will erect and maintain a ``fire wall'' between 
the person or entity and the broker-dealer with respect to access to 
information concerning the composition and/or changes to such 
Investment Company portfolio or Creation Basket. Any person or entity 
who has access to information regarding the Fund's portfolio 
composition or changes thereto or the Creation Basket will be subject 
to procedures designed to prevent the use and dissemination of material 
nonpublic information regarding the portfolio or changes thereto or the 
Creation Basket.
    The Exchange further believes that Rule 8.900-E is designed to 
prevent fraudulent and manipulative acts and practices related to the 
listing and trading of Shares of the Fund because it provides 
meaningful requirements about both the data that will be made publicly 
available about the Shares, as well as the information that will only 
be available to certain parties and the controls on such information. 
Specifically, the Exchange believes that the requirements related to 
information protection set forth in Rule 8.900-E(b)(5) will act as a 
safeguard against misuse and improper dissemination of information 
related to the Fund's portfolio composition, the Creation Basket, or 
changes thereto. The requirement that any person or entity implement 
procedures to prevent the use and dissemination of material non-public 
information regarding the portfolio or Creation Basket will act to 
prevent any individual or entity from sharing such information 
externally and the internal ``fire wall'' requirements applicable where 
an entity is a registered broker-dealer or affiliated with a broker-
dealer will act to make sure that no entity will be able to misuse the 
data for their own purposes. Accordingly, the Exchange believes that 
this proposal is designed to prevent fraudulent and manipulative acts 
and practices.
    The Exchange further believes that the proposal is designed to 
prevent fraudulent and manipulative acts and practices related to the 
listing and trading of Shares of the Fund and to promote just and 
equitable principles of trade and to protect investors and the public 
interest because the Exchange would halt trading under certain 
circumstances under which trading in the Shares of the Fund may be 
inadvisable. Specifically, trading in the Shares will be subject to 
Rule 8.900-E(d)(2)(C)(i), which provides that the Exchange may consider 
all relevant factors in exercising its discretion to halt trading in 
the Fund. Trading may be halted because of market conditions or for 
reasons that, in the view of the Exchange, make trading in the series 
of Managed Portfolio Shares inadvisable. These may include: (a) The 
extent to which trading is not occurring in the securities and/or the 
financial instruments composing the portfolio; or (b) whether other 
unusual conditions or circumstances detrimental to the maintenance of a 
fair and orderly market are present.\24\ Additionally, trading in the 
Shares will be subject to Rule 8.900-E(d)(2)(C)(ii), which provides 
that the Exchange would halt trading where the Exchange becomes aware 
that: (a) The VIIV of a series of Managed Portfolio Shares is not being 
calculated or disseminated in one second intervals, as required; (b) 
the NAV with respect to a series of Managed Portfolio Shares is not 
disseminated to all market participants at the same time; (c) the 
holdings of a series of Managed Portfolio Shares are not made available 
on at least a quarterly basis as required under the 1940 Act; or (d) 
such holdings are not made available to all market participants at the 
same time (except as otherwise permitted under the currently applicable 
exemptive order or no-action relief granted by the Commission or 
Commission staff to the Investment Company with respect to the series 
of Managed Portfolio Shares). The Exchange would halt trading in such 
Shares until such time as the VIIV, the NAV, or the holdings are 
available, as required.
---------------------------------------------------------------------------

    \24\ See note 21, supra.
---------------------------------------------------------------------------

    With respect to the proposed listing and trading of Shares of the 
Fund, 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 Rule 8.900-E.\25\ The Fund's 
holdings will conform to the permissible investments as set forth in 
the Exemptive Application and Exemptive Order.\26\ As noted above,

[[Page 22000]]

FINRA, on behalf of the Exchange, or the regulatory staff of the 
Exchange, or both, will communicate as needed regarding trading in the 
Shares and the underlying exchange-traded instruments with other 
markets and other entities that are members of the ISG, and FINRA, on 
behalf of the Exchange, or the regulatory staff of the Exchange, or 
both, may obtain trading information regarding trading such securities 
from such markets and other entities. In addition, the Exchange may 
obtain information regarding trading in the Shares and the underlying 
exchange-traded instruments from markets and other entities that are 
members of ISG or with which the Exchange has in place a comprehensive 
surveillance sharing agreement.
---------------------------------------------------------------------------

    \25\ The Exchange represents that, for initial and continued 
listing, the Fund will be in compliance with Rule 10A-3 under the 
Act. See 17 CFR 240.10A-3.
    \26\ See note 10, supra.
---------------------------------------------------------------------------

    With respect to trading of Shares of the Fund, the ability of 
market participants to buy and sell Shares at prices near the VIIV is 
dependent upon their assessment that the VIIV is a reliable, indicative 
real-time value for the Fund's underlying holdings. Market participants 
are expected to accept the VIIV as a reliable, indicative real-time 
value because (1) the VIIV will be calculated and disseminated based on 
the Fund's actual portfolio holdings, (2) the securities in which the 
Fund plans to invest are generally highly liquid and actively traded 
and trade at the same time as the Fund and therefore generally have 
accurate real time pricing available, and (3) market participants will 
have a daily opportunity to evaluate whether the VIIV at or near the 
close of trading is indeed predictive of the actual NAV.
    The proposed rule change is designed to promote just and equitable 
principles of trade and to protect investors and the public interest in 
that the Exchange will obtain a representation that the NAV per Share 
of the Fund will be calculated daily and that the NAV will be made 
available to all market participants at the same time. Investors can 
also obtain the Fund's SAI, its shareholder reports, its Form N-CSR 
(filed twice a year), and its Form N-CEN (filed annually). The Fund's 
SAI and shareholder reports will be available free upon request from 
the Fund, and those documents and the Form N-PORT, Form N-CSR, and Form 
N-CEN may be viewed on-screen or downloaded from the Commission's 
website at www.sec.gov. In addition, a large amount of information will 
be publicly available regarding the Fund and the Shares, thereby 
promoting market transparency. Quotation and last sale information for 
the Shares will be available via the CTA high-speed line. Information 
regarding the VIIV will be widely disseminated in one second intervals 
throughout the Exchange's Core Trading Session by the Reporting 
Authority and/or one or more major market data vendors. The website for 
the Fund will include a prospectus for the Fund that may be downloaded, 
and additional data relating to NAV and other applicable quantitative 
information, updated on a daily basis. Moreover, prior to the 
commencement of trading, the Exchange will inform its members in an 
Information Bulletin of the special characteristics and risks 
associated with trading the Shares.
    In addition, as noted above, investors will have ready access to 
the VIIV, and quotation and last sale information for the Shares. The 
Shares will conform to the initial and continued listing criteria under 
Rule 8.900-E. The Fund's investments, including derivatives, will be 
consistent with its investment objective and will not be used to 
enhance leverage (although certain derivatives and other investments 
may result in leverage). That is, the Fund's investments will not be 
used to seek performance that is the multiple or inverse multiple 
(e.g., 2X or -3X) of the Fund's primary broad-based securities 
benchmark index (as defined in Form N-1A).
    The Exchange also believes that 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 actively-managed exchange-traded 
products 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 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 
VIIV and quotation and last sale information for the Shares.
    For the above reasons, the Exchange believes that the proposed rule 
change is consistent with the requirements of Section 6(b)(5) of the 
Act.

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 purposes of the Act. The Exchange believes the 
proposed rule change would permit the listing and trading of an 
additional actively-managed exchange-traded product, thereby promoting 
competition among exchange-traded products 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. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the foregoing proposed rule change does not: (i) 
Significantly affect the protection of investors or the public 
interest; (ii) impose any significant burden on competition; and (iii) 
become operative for 30 days from the date on which it was filed, or 
such shorter time as the Commission may designate, it has become 
effective pursuant to Section 19(b)(3)(A) of the Act \27\ and Rule 19b-
4(f)(6) thereunder.\28\
---------------------------------------------------------------------------

    \27\ 15 U.S.C. 78s(b)(3)(A).
    \28\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 
requires a self-regulatory organization to give the Commission 
written notice of its intent to file the proposed rule change at 
least five business days prior to the date of filing of the proposed 
rule change, or such shorter time as designated by the Commission. 
The Exchange has satisfied this requirement.
---------------------------------------------------------------------------

    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the 
Act normally does not become operative for 30 days after the date of 
its filing. However, Rule 19b-4(f)(6)(iii) \29\ permits the Commission 
to designate a shorter time if such action is consistent with the 
protection of investors and the public interest. The Exchange requested 
that the Commission waive the 30-day operative delay so that the 
proposal may become operative immediately upon filing. The Commission 
notes it has approved, and noticed for immediate effectiveness, 
proposed rule changes to permit listing and trading on the Exchange of 
Managed Portfolio Shares similar to the Funds.\30\ The proposed listing 
rule for the Fund raises no novel legal or regulatory issues. 
Therefore, the Commission believes that waiver of the 30-day operative 
delay is consistent with the protection of investors and the public 
interest. Accordingly, the Commission hereby waives the 30-day 
operative delay and designates the proposed rule change operative upon 
filing.\31\
---------------------------------------------------------------------------

    \29\ 17 CFR 240.19b-4(f)(6)(iii).
    \30\ See supra note 5.
    \31\ For purposes only of waiving the 30-day operative delay, 
the Commission has also considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).

---------------------------------------------------------------------------

[[Page 22001]]

    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change 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 [email protected]. Please include 
File Number SR-NYSEArca-2022-17 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-2022-17. 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-2022-17 and should be submitted 
on or before May 4, 2022.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\32\
---------------------------------------------------------------------------

    \32\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-07852 Filed 4-12-22; 8:45 am]
BILLING CODE 8011-01-P


