71762 Federal Register / Vol. 75, No. 226 / Wednesday, November 24, 2010 / Notices 

16See NYSE Arca Equities Rule 8.600(d)(1)(B) 

(also requiring that the Exchange obtain a 

representation from the issuer that the NAV per 

Share will be calculated daily). 

17See NYSE Arca Equities Rule 8.600(d)(2)(C)(ii). 

With respect to trading halts, the Exchange may 

consider other relevant factors in exercising its 

discretion to halt or suspend trading in the Shares. 

Trading on the Exchange in the Shares may be 

halted because of market conditions or for reasons 

that, in the view of the Exchange, make trading in 

the Shares inadvisable. These may include: (1) The 

extent to which trading is not occurring in the 

securities comprising the Disclosed Portfolio 

and/or the financial instruments of the Fund; or (2) 

whether other unusual conditions or circumstances 

detrimental to the maintenance of a fair and orderly 

market are present. 

18The Commission notes that the Exchange has 

represented that neither the Fund’s Advisor nor 

Sub-Advisor is affiliated with a broker-dealer. See 

supra note 6. 

19 17 CFR 240.10A–3. 

20 15 U.S.C. 78f(b)(5). 

21 15 U.S.C. 78s(b)(2). 

22 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

Clearing Corporation. The basket 

represents one Creation Unit of the 

Fund. The NAV of the Fund will 

normally be determined as of the close 

of the regular trading session on the 

NYSE (ordinarily 4 p.m. Eastern Time) 

on each business day. 

The Commission further believes that 

the proposal to list and trade the Shares 

is reasonably designed to promote fair 

disclosure of information that may be 

necessary to price the Shares 

appropriately and to prevent trading 

when a reasonable degree of 

transparency cannot be assured. The 

Commission notes that the Exchange 

will obtain a representation from the 

issuer of the Shares that the NAV and 

the Disclosed Portfolio will be made 

available to all market participants at 

the same time.16 The Exchange may halt 

trading in the Shares if the value of the 

Portfolio Indicative Value is no longer 

calculated or available or the Disclosed 

Portfolio is not made available to all 

market participants at the same time.17

In addition, NYSE Arca Equities Rule 

8.600(d)(2)(B)(ii) requires that the 

Reporting Authority that provides the 

Disclosed Portfolio implement and 

maintain, or be subject to, procedures 

designed to prevent the use and 

dissemination of material non-public 

information regarding the actual 

components of the portfolio. Lastly, the 

Commission notes that the Exchange 

will halt trading in the Shares under the 

specific circumstances set forth in NYSE 

Arca Equities Rule 8.600(d)(2)(D) and 

that, if there is an additional Fund subadvisor that is affiliated with a brokerdealer, that sub-advisor must erect a fire 

wall between it and such broker-dealer 

with respect to access to information 

concerning the composition and/or 

changes to the investment portfolio of 

the Fund.18

The Exchange has represented that 

the Shares are deemed to be equity 

securities, thus rendering trading in the 

Shares subject to the Exchange’s 

existing rules governing the trading of 

equity securities. In support of this 

proposal, the Exchange has made 

representations, including: 

(1) The Shares will conform to the 

initial and continued listing criteria 

under NYSE Arca Equities Rule 8.600. 

(2) The Exchange has appropriate 

rules to facilitate transactions in the 

Shares during all trading sessions. 

(3) The Exchange’s surveillance 

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. 

(4) 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. 

Specifically, the Information Bulletin 

will discuss the following: (a) The 

procedures for purchases and 

redemptions of Shares in Creation Unit 

aggregations (including noting that 

Shares are not individually redeemable); 

(b) NYSE Arca Equities Rule 9.2(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; (c) the risks involved 

in trading the Shares during the 

Opening and Late Trading Sessions 

when an updated PIV will not be 

calculated or publicly disseminated; (d) 

how information regarding the PIV is 

disseminated; (e) 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 (f) 

trading information. 

(5) A minimum of 100,000 Shares will 

be outstanding at the commencement of 

trading on the Exchange. 

(6) For initial and continued listing, 

the Shares must comply with Rule 

10A–3 under the Act.19

This approval order is based on the 

Exchange’s representations. 

For the foregoing reasons, the 

Commission finds that the proposed 

rule change is consistent with Section 

6(b)(5) of the Act 20 and the rules and 

regulations thereunder applicable to a 

national securities exchange. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,21 that the 

proposed rule change (SR–NYSEArca– 

2010–86), be, and it hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.22

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–29560 Filed 11–23–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63333; File No. SR– 

NASDAQ–2010–148] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Relating to 

Exchange-Traded Notes 

November 17, 2010. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’) 1, and Rule 19b–4 2 thereunder, 

notice is hereby given that on November 

15, 2010 The NASDAQ Stock Market 

LLC (‘‘NASDAQ’’ or ‘‘Exchange’’) filed 

with the Securities and Exchange 

Commission (‘‘SEC’’ or ‘‘Commission’’) 

the proposed rule change as described 

in Items I and II below, which Items 

have been prepared by the NASDAQ. 

The Commission is publishing this 

notice to solicit comments on the 

proposed rule change from interested 

persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The NASDAQ Stock Market LLC 

proposes to amend Chapter IV, Section 

3, titled Criteria for Underlying 

Securities, to: (a) Permit trading options 

on leveraged (multiple or inverse) 

exchange-traded notes, and (b) broaden 

the definition of ‘‘Futures-Linked 

Securities.’’ 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http:// 

www.nasdaq.cchwallstreet.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 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change. The text of 

these statements may be examined at 

WReier-Aviles on DSKGBLS3C1PROD with NOTICES

Federal Register / Vol. 75, No. 226 / Wednesday, November 24, 2010 / Notices 71763 

3These ETNs include: The Barclays Short B 

Leveraged Inverse S&P 500 TR ETN (‘‘BXDB’’), the 

Barclays Short C Leveraged Inverse S&P 500 TR 

ETN (‘‘BXDC’’) and the Barclays Short D Leveraged 

Inverse S&P 500 TR ETN (‘‘BXDD’’). 

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 aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of the proposed rule 

change is to amend Chapter IV, Section 

3(l), titled Index-Linked Securities, to: 

(a) Permit trading options on leveraged 

(multiple or inverse) exchange-traded 

notes (‘‘ETNs’’), and (b) broaden the 

definition of ‘‘Futures-Linked 

Securities.’’ ETNs are also known as 

‘‘Index-Linked Securities,’’ which are 

designed for investors who desire to 

participate in a specific market segment 

by providing exposure to one or more 

identifiable underlying securities, 

commodities, currencies, derivative 

instruments or market indexes of the 

foregoing. Index- Linked Securities are 

the non-convertible debt of an issuer 

that have a term of at least one (1) year 

but not greater than thirty (30) years. 

Despite the fact that Index-Linked 

Securities are linked to an underlying 

index, each trade as a single, exchangelisted security. Accordingly, rules 

pertaining to the listing and trading of 

standard equity options apply to IndexLinked Securities. 

Leveraged ETN Options 

The Exchange proposes to amend 

Chapter IV, Section 3(l) to permit the 

listing of options on leveraged (multiple 

or inverse) ETNs. Multiple leveraged 

ETNs seek to provide investment results 

that correspond to a specified multiple 

of the percentage performance on a 

given day of a particular Reference 

Asset. Inverse leveraged ETNs seek to 

provide investment results that 

correspond to the inverse (opposite) of 

the percentage performance on a given 

day of a particular Reference Asset by a 

specified multiple. Multiple leveraged 

ETNs and inverse leveraged ETNs differ 

from traditional ETNs in that they do 

not merely correspond to the 

performance of a given Reference Asset, 

but rather attempt to match a multiple 

or inverse of a Reference Asset’s 

performance. 

The Barclays Long B Leveraged S&P 

500 TR ETN (‘‘BXUB’’), the Barclays 

Long C Leveraged S&P 500 TR ETN 

(‘‘BXUC’’) and the UBS AG 2x Monthly 

Leveraged Long Exchange Traded 

Access Securities (‘‘E–TRACS’’) linked 

to the Alerian MLP Infrastructure Index 

due July 9, 2040 (‘‘MLPL’’) currently 

trade on the NYSE Arca Stock Exchange 

and are examples of multiple leveraged 

ETNs. In addition, the Barclays ETN + 

Inverse S&P 500 VIX Short-Term 

Futures ETN (‘‘XXV’’) currently trades 

on the NYSE Arca Stock Exchange and 

is an example of an inverse leveraged 

ETN. The NYSE Arca Stock Exchange 

also lists several other inverse leveraged 

ETNs for trading.3

Currently, Chapter IV, Section 3(l) 

provides that securities deemed 

appropriate for options trading shall 

include shares or other securities 

(‘‘Equity Index-Linked Securities,’’ 

‘‘Commodity-Linked Securities,’’ 

‘‘Currency-Linked Securities,’’ ‘‘Fixed 

Income Index-Linked Securities,’’ 

‘‘Futures-Linked Securities,’’ and 

‘‘Multifactor Index-Linked Securities,’’ 

collectively known as ‘‘Index-Linked 

Securities’’) that are principally traded 

on a national securities exchange and an 

‘‘NMS Stock’’ (as defined in Rule 600 of 

Regulation NMS under the Securities 

Exchange Act of 1934), and represent 

ownership of a security that provides for 

the payment at maturity, as described 

below: 

• Equity Index-Linked Securities are 

securities that provide for the payment 

at maturity of a cash amount based on 

the performance of an underlying index 

or indexes of equity securities (‘‘Equity 

Reference Asset’’); 

• Commodity-Linked Securities are 

securities that provide for the payment 

at maturity of a cash amount based on 

the performance of one or more physical 

commodities or commodity futures, 

options on commodities, or other 

commodity derivatives or CommodityBased Trust Shares or a basket or index 

of any of the foregoing (‘‘Commodity 

Reference Asset’’); 

• Currency-Linked Securities are 

securities that provide for the payment 

at maturity of a cash amount based on 

the performance of one or more 

currencies, or options on currencies or 

currency futures or other currency 

derivatives or Currency Trust Shares (as 

defined in Section 3(i)), or a basket or 

index of any of the foregoing (‘‘Currency 

Reference Asset’’); 

• Fixed Income Index-Linked 

Securities are securities that provide for 

the payment at maturity of a cash 

amount based on the performance of 

one or more notes, bonds, debentures or 

evidence of indebtedness that include, 

but are not limited to, U.S. Department 

of Treasury securities (‘‘Treasury 

Securities’’), government sponsored 

entity securities (‘‘GSE Securities’’), 

municipal securities, trust preferred 

securities, supranational debt and debt 

of a foreign country or a subdivision 

thereof or a basket or index of any of the 

foregoing (‘‘Fixed Income Reference 

Asset’’); 

• Futures-Linked Securities are 

securities that provide for the payment 

at maturity of a cash amount based on 

the performance of an index of (a) 

futures on Treasury Securities, GSE 

Securities, supranational debt and debt 

of a foreign country or a subdivision 

thereof, or options or other derivatives 

on any of the foregoing; or (b) interest 

rate futures or options or derivatives on 

the foregoing in this subparagraph (b) 

(‘‘Futures Reference Asset’’); and 

• Multifactor Index-Linked Securities 

are securities that provide for the 

payment at maturity of a cash amount 

based on the performance of any 

combination of two or more Equity 

Reference Assets, Commodity Reference 

Assets, Currency Reference Assets, 

Fixed Income Reference Assets, or 

Futures Reference Assets (‘‘Multifactor 

Reference Asset’’). 

For purposes of Chapter IV, Section 

3(l), Equity Reference Assets, 

Commodity Reference Assets, Currency 

Reference Assets, Fixed Income 

Reference Assets, Futures Reference 

Assets together with Multifactor 

Reference Assets, collectively are 

referred to as ‘‘Reference Assets.’’ 

In addition, Index-Linked Securities 

must meet the criteria and guidelines for 

underlying securities set forth in 

Chapter IV, Section 3(b); or (ii) the 

Index-Linked Securities must be 

redeemable at the option of the holder 

at least on a weekly basis through the 

issuer at a price related to the applicable 

underlying Reference Asset. In addition, 

the issuing company is obligated to 

issue or repurchase the securities in 

aggregation units for cash, or cash 

equivalents, satisfactory to the issuer of 

Index-Linked Securities which underlie 

the option as described in the IndexLinked Securities prospectus. 

The Exchange proposes to amend 

Chapter IV, Section 3(l) to expand the 

type of Index-Linked Securities that 

may underlie options to include 

leveraged (multiple or inverse) ETNs. To 

affect this change, the Exchange 

proposes to amend Chapter IV, Section 

3(l) at subparagraph (i) by adding the 

phrase, ‘‘or the leveraged (multiple or 

inverse) performance’’ to each of the 

subparagraphs ((1) through (6)) in that 

section which set forth the different 

eligible Reference Assets. 

The Exchange’s current continuing 

listing standards for ETN options will 

continue to apply. Specifically, under 

WReier-Aviles on DSKGBLS3C1PROD with NOTICES

71764 Federal Register / Vol. 75, No. 226 / Wednesday, November 24, 2010 / Notices 

4See Chapter XIV, Sections 5 and 7, Position 

Limits, and Section 9, Exercise Limits. 

5See Chapter XIII concerning Margin 

Requirements. 

6 15 U.S.C. 78f(b). 

7 15 U.S.C. 78f(b)(5). 

8 15 U.S.C. 78s(b)(3)(A). 

9 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires a self-regulatory organization to 

provide the Commission with written notice of its 

intent to file the proposed rule change, along with 

a brief description and text of 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 fulfilled this requirement. 

Chapter IV, Section 4(k), ETN options 

shall not be deemed to meet the 

Exchange’s requirements for continued 

approval, and the Exchange shall not 

open for trading any additional series or 

option contracts of the class covering 

such Securities whenever the 

underlying Securities are delisted and 

trading in the Securities is suspended 

on a national securities exchange, or the 

Securities are no longer an ‘‘NMS Stock’’ 

(as defined in Rule 600 of Regulation 

NMS under the Securities Exchange Act 

of 1934). In addition, the Exchange shall 

consider the suspension of opening 

transactions in any series of options of 

the class covering Index-Linked 

Securities in any of the following 

circumstances: (1) The underlying 

Index-Linked Security fails to comply 

with the terms of Chapter IV, Section 

3(l), (2) in accordance with the terms of 

Chapter IV, Section 4(b), in the case of 

options covering Index-Linked 

Securities when such options were 

approved pursuant to Chapter IV, 

Section 3(l), except that, in the case of 

options covering Index-Linked 

Securities approved pursuant to Chapter 

IV, Section 3(l)(iii)(2) that are 

redeemable at the option of the holder 

at least on a weekly basis, then option 

contracts of the class covering such 

Securities may only continue to be open 

for trading as long as the Securities are 

listed on a national securities exchange 

and are ‘‘NMS’’ stock as defined in Rule 

600 of Regulation NMS; (3) in the case 

of any Index-Linked Security trading 

pursuant to Chapter IV, Section 3(l), the 

value of the Reference Asset is no longer 

calculated; or (4) such other event shall 

occur or condition exist that in the 

opinion of the Exchange makes further 

dealing in such options on the Exchange 

inadvisable. Expanding the eligible 

types of ETNs for options trading under 

Chapter IV, Section 3(l) will not have 

any effect on the rules pertaining to 

position and exercise limits 4 or 

margin.5

This proposal is necessary to enable 

the Exchange to list and trade options 

on shares of the BXUB, BXUC, XXV, 

BXDB, BXDC, BXDD and the MLPL. The 

Exchange believes the ability to trade 

options on leveraged (multiple or 

inverse) ETNs will provide investors 

with greater risk management tools. The 

proposed amendment to the Exchange’s 

listing criteria for options on ETNs is 

necessary to ensure that the Exchange 

will be able to list options on the above 

listed leveraged (multiple and inverse) 

ETNs as well as other leveraged 

(multiple and inverse) ETNs that may be 

introduced in the future. 

The Exchange represents that its 

existing surveillance procedures 

applicable to trading in options are 

adequate to properly monitor the 

trading in leveraged (multiple and 

inverse) ETN options. 

It is expected that The Options 

Clearing Corporation will seek to revise 

the Options Disclosure Document 

(‘‘ODD’’) to accommodate the listing and 

trading of leveraged (multiple and 

inverse) ETN options. 

Broaden the Definition of ‘‘FuturesLinked Securities’’ 

The second change being proposed by 

this filing is to amend the definition of 

‘‘Futures-Linked Securities’’ set forth in 

Chapter IV, Section 3(l)(i)(5). Currently, 

the definition of ‘‘Futures-Linked 

Securities’’ is limited to securities that 

provide for the payment at maturity of 

a cash amount based on the 

performance of an index of (a) futures 

on Treasury Securities, GSE Securities, 

supranational debt and debt of a foreign 

country or a subdivision thereof, or 

options or other derivatives on any of 

the foregoing; or (b) interest rate futures 

or options or derivatives on the 

foregoing in this subparagraph (b). 

Chapter IV, Section 3(l) sets forth 

generic listing criteria for securities that 

may serve as underlyings for listed 

options trading. The Exchange believes 

that the current definition of ‘‘FuturesLinked Securities’’ is unnecessarily 

restrictive and requires the Exchange to 

submit a filing to amend the definition 

each time a new ETN is issued that 

tracks the performance of an index of 

futures/options on futures that is not 

enumerated in the existing rule. To 

address this issue, the Exchange is 

proposing to revise the definition of 

‘‘Futures-Linked Securities’’ to provide 

that they are securities that for the 

payment at maturity of a cash amount 

based on the performance or the 

leveraged (multiple or inverse) 

performance of an index or indexes of 

futures contracts or options or 

derivatives on futures contracts 

(‘‘Futures Reference Asset’’). The 

Exchange notes that all ETNs eligible for 

options trading must be principally 

traded on a national securities exchange 

and must be an ‘‘NMS Stock.’’ As a 

result, the Exchange believes that 

broadening the definition of ‘‘FuturesLinked Securities’’ by no longer 

specifically listing the types of futures 

and options on futures contracts that 

may be tracked by an ETN is 

appropriate. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act 6 in general, and furthers the 

objectives of Section 6(b)(5) of the Act 7

in particular, in that it is designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, to foster 

cooperation and coordination with 

persons engaged in facilitating 

transactions in securities, and to remove 

impediments to and perfect the 

mechanisms of a free and open market 

and a national market system, and, in 

general, to protect investors and the 

public interest. The Exchange believes 

that the proposed rules applicable to 

trading pursuant to generic listing and 

trading criteria serve to foster investor 

protection. 

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 not 

necessary or appropriate in furtherance 

of the purposes of the Act. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants or Others 

No written comments were either 

solicited or received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change: (1) Does not significantly affect 

the protection of investors or the public 

interest; (2) does not impose any 

significant burden on competition; and 

(3) by its terms does not become 

operative for 30 days after the date of 

this filing, or such shorter time as the 

Commission may designate if consistent 

with the protection of investors and the 

public interest, the proposed rule 

change has become effective pursuant to 

Section 19(b)(3)(A) of the Act 8 and Rule 

19b–4(f)(6) thereunder.9

A proposed rule change filed under 

Rule 19b–4(f)(6) normally does not 

become operative for 30 days after the 

date of filing. However, Rule 19b– 

WReier-Aviles on DSKGBLS3C1PROD with NOTICES

Federal Register / Vol. 75, No. 226 / Wednesday, November 24, 2010 / Notices 71765 

10For 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). 

11See Securities Exchange Act Release No. 63202 

(October 28, 2010), 75 FR 67794 (November 3, 2010) 

(SR–CBOE–2010–080). 

12The text of the proposed rule change is 

available on the Commission’s Web site at 

www.sec.gov. 

13 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

4(f)(6)(iii) permits the Commission to 

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest. The 

Exchange requests that the Commission 

waive the 30-day operative delay so that 

the Exchange can list and trade options 

on leveraged (multiple or inverse) ETNs 

and implement the amended definition 

of ‘‘Futures-Linked Securities’’ 

immediately. The Commission believes 

that waiving the 30-day operative delay 

is consistent with the protection of 

investors and the public interest.10 The 

Commission notes the proposal is 

substantively identical to a proposal 

that was recently approved by the 

Commission, and does not raise any 

new regulatory issues.11 For these 

reasons, the Commission designates the 

proposed rule change as operative upon 

filing. 

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 e-mail to rulecomments@sec.gov. Please include File 

Number SR–NASDAQ–2010–148 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–1090. 

All submissions should refer to File 

Number SR–NASDAQ–2010–148. This 

file number should be included on the 

subject line if e-mail 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 Web site (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 Web site 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 a.m. and 3 p.m. Copies of the filing 

also will be available for inspection and 

copying at the principal office of the 

Exchange.12 All comments received will 

be posted without change; the 

Commission does not edit personal 

identifying information from 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR– 

NASDAQ–2010–148 and should be 

submitted on or before December 15, 

2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–29561 Filed 11–23–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63334; File No. SR–Phlx2010–159] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Relating to 

Exchange-Traded Notes 

November 17, 2010. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 19b–4 2 thereunder, 

notice is hereby given that on November 

15, 2010, NASDAQ OMX PHLX LLC 

(‘‘Phlx’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘SEC’’ or ‘‘Commission’’) the proposed 

rule change as described in Items I and 

II below, which Items have been 

prepared by the Exchange. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend 

Exchange Rule 1009, titled Criteria for 

Underlying Securities, at Commentary 

.09 to: (a) Permit trading options on 

leveraged (multiple or inverse) 

exchange-traded notes, and (b) broaden 

the definition of ‘‘Futures-Linked 

Securities.’’ 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://www.nasdaqtrader.com/ 

micro.aspx?id=PHLXRulefilings, 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 

Exchange 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 these 

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 aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of the proposed rule 

change is to amend Exchange Rule 1009 

at Commentary .09 to: (a) permit trading 

options on leveraged (multiple or 

inverse) exchange-traded notes 

(‘‘ETNs’’), and (b) broaden the definition 

of ‘‘Futures-Linked Securities.’’ ETNs are 

also known as ‘‘Index-Linked 

Securities,’’ which are designed for 

investors who desire to participate in a 

specific market segment by providing 

exposure to one or more identifiable 

underlying securities, commodities, 

currencies, derivative instruments or 

market indexes of the foregoing. IndexLinked Securities are the nonconvertible debt of an issuer that have 

a term of at least one (1) year but not 

WReier-Aviles on DSKGBLS3C1PROD with NOTICES