Citation: "79 FR 35205"
Document Number: "Release No. 34-72384; File No. SR-NASDAQ-2014-038"
June 13, 2014.
FOOTNOTE 1 15 U.S.C. 78s(b)(1). END FOOTNOTE
FOOTNOTE 2 17 CFR 240.19b-4. END FOOTNOTE
FOOTNOTE 3 See Securities Exchange Act Release No. 72014 (
FOOTNOTE 4 In Amendment No. 1, the Exchange confirms the three trading sessions on the Exchange, clarifies the valuation of investments for purposes of calculating net asset value, clarifies what information would be available on the Fund's Web site, and provides additional information relating to surveillance with respect to certain assets to be held by the Fund. END FOOTNOTE
FOOTNOTE 5 In Amendment No. 2, the Exchange amends the proposal to reflect a name change to the Fund and the underlying index. Specifically, the Exchange replaces each reference to "Reality Shares NASDAQ-100 Isolated Dividend Growth Index ETF" in the proposal with "Reality Shares NASDAQ-100 DIVS Index ETF," and replaces each reference to "Reality Shares NASDAQ-100 Isolated Dividend Growth Index" in the proposal with "Reality Shares NASDAQ-100 DIVS Index." END FOOTNOTE
The proposed rule change would permit the listing and trading of shares of the Fund, which would seek long-term capital appreciation by tracking the performance of the Reality Shares NASDAQ-100 DIVS Index ("Index") (formerly, Reality Shares NASDAQ-100 Isolated Dividend Growth Index). At least 80% of the Fund's total assets would be invested in the component securities of the Index, which would be calculated using a proprietary, rules-based methodology designed to track market expectations for dividend growth conveyed in real-time using the mid-point of the bid-ask spread on U.S. exchange-listed NASDAQ-100 Index options and U.S. exchange-listed options on exchange traded funds designed to track the NASDAQ-100 Index. Under the proposal, the Fund would buy (i.e., hold a "long" position in) and sell (i.e., hold a "short" position in) put and call options. The strategy of taking both a long position in a security through its ex-dividend date (the last date an investor can own the security and receive dividends paid on the security) and a corresponding short position in the same security immediately thereafter is designed to allow the Fund to isolate its exposure to the growth of the level of dividends expected to be paid on such security while minimizing its exposure to changes in the trading price of such security.
Section 19(b)(2) of the Act /6/ provides that, within 45 days of the publication of notice of the filing of a proposed rule change, or within such longer period up to 90 days as the Commission may designate if it finds such longer period to be appropriate and publishes its reasons for so finding or as to which the self-regulatory organization consents, the Commission shall either approve the proposed rule change, disapprove the proposed rule change, or institute proceedings to determine whether the proposed rule change should be disapproved. The Commission is extending this 45-day time period.
FOOTNOTE 6 15 U.S.C. 78s(b)(2). END FOOTNOTE
The Commission finds that it is appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the unique nature of the investment strategy of the proposed Fund.
Accordingly, the Commission, pursuant to Section 19(b)(2) of the Act, /7/ designates
FOOTNOTE 7 Id. END FOOTNOTE
For the Commission, by the
FOOTNOTE 8 17 CFR 200.30-3(a)(31). END FOOTNOTE
Kevin M. O'Neill,
[FR Doc. 2014-14317 Filed 6-18-14;
BILLING CODE 8011-01-P
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