46818 Federal Register / Vol. 74, No. 175 / Friday, September 11, 2009 / Notices 

9 15 U.S.C. 78s(b)(3)(A). 

10 17 CFR 240.19b–4(f)(2). 

11 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4See Securities Exchange Act Release No. 34– 

58968 (November 17, 2008), 73 FR 64647 (SR– 

NYSEArca–2008–111). 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

Written comments were neither 

solicited nor received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change is effective 

upon filing pursuant to Section 

19(b)(3)(A) 9 of the Act and Rule 19b– 

4(f)(2) 10 thereunder. 

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission may summarily abrogate 

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–NYSE–2009–90 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–NYSE–2009–90. 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 inspection and copying in 

the Commission’s Public Reference 

Room on official business days between 

the hours of 10 a.m. and 3 p.m. Copies 

of such filing also will be available for 

inspection and copying at the principal 

office of the Exchange. 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–NYSE– 

2009–90 and should be submitted on or 

before October 2, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–21884 Filed 9–10–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60621; File No. SR– 

NYSEArca–2009–77] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing of Proposed 

Rule Change Amending NYSE Arca 

Options Rule 5.3(j) 

September 3, 2009. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that on August 

19, 2009, NYSE Arca, Inc. (‘‘NYSE 

Arca’’ or the ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(the ‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III 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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend the 

definition of Futures-Linked Securities 

for the trading of options on IndexLinked Securities. The text of the 

proposed rule change is attached as 

Exhibit 5 to the 19b–4 form. A copy of 

this filing is available on the Exchange’s 

Web site at www.nyse.com, at the 

Exchange’s principal office 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 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

NYSE Arca Rules [sic] 5.3(j) 

designates the listing and trading of 

options on equity index-linked 

securities (‘‘Equity Index-Linked 

Securities’’), commodity-linked 

securities (‘‘Commodity-Linked 

Securities’’), currency-linked securities 

(‘‘Currency-Linked Securities’’), fixed 

income index-linked securities (‘‘Fixed 

Income Index-Linked Securities’’), 

futures-linked securities (‘‘FuturesLinked Securities’’) and multifactor 

index-linked securities (‘‘Multifactor 

Index-Linked Securities’’), collectively 

known as ‘‘Index-Linked Securities’’ (as 

defined in NYSE Arca Equities Rule 

5.2(j)(6)) that are principally traded on 

a national securities exchange and an 

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

Regulation NMS under the Securities 

and Exchange Act of 1934). The 

Exchange proposes to amend the 

definition of Futures-Linked Securities 

for the trading of options on IndexLinked Securities to include products 

linked to CBOE Volatility Index (VIX) 

Futures. This proposal is substantially 

similar to the previously approved 

NYSE Arca Equities Rule 5.2(j)(6)(v).4

Specifically, the Exchange proposes to 

add the CBOE Volatility Index (VIX) 

Futures to the definition of a Futures 

Reference Asset in NYSE Arca Rule 

5.3(j)(1)(E). 

Index-Linked Securities are designed 

for investors who desire to participate in 

a specific market segment by providing 

exposure to one or more identifiable 


cprice-sewell on DSKGBLS3C1PROD with NOTICES
Federal Register / Vol. 74, No. 175 / Friday, September 11, 2009 / Notices 46819 

5For the purposes of Rule 5.3(j), Equity Reference 

Assets, Commodity Reference Assets, Currency 

Reference Assets, Fixed Income Reference Assets, 

Futures Reference Assets and Multifactor Reference 

Assets, will be collectively referred to as ‘‘Reference 

Assets,’’ as defined in NYSE Arca Equities Rule 

5.2(j)(6). 

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

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

underlying securities, commodities, 

currencies, derivative instruments or 

market indexes of the foregoing 

(‘‘Underlying Index’’ or ‘‘Underlying 

Indexes’’). 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. 

Currently, the Exchange will consider 

listing and trading options on IndexLinked Securities provided the IndexLinked Securities meet the criteria for 

underlying securities set forth in Rule 

5.3(a)–(b). 

Index-Linked Securities must meet 

the criteria and guidelines for 

underlying securities set forth in Rule 

5.3(a); or 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.5 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 

Index-Linked Securities prospectus. 

Options on Index-Linked Securities 

will continue to be subject to all 

Exchange rules governing the trading of 

equity options. The current continuing 

or maintenance listing standards for 

options traded on NYSE Arca will 

continue to apply. 

The VIX 

The information in this filing relating 

to the VIX was taken from the Web site 

of the Chicago Board Options Exchange 

(the ‘‘CBOE’’). 

The VIX was originally developed by 

the CBOE in 1993 and was calculated 

using S&P 100® Index options. The 

current methodology for the VIX was 

introduced by the CBOE in September 

2003 and it is now an index that uses 

the quotes of certain S&P 500® Index 

(‘‘SPX’’) option series to derive a 

measure of the volatility of the U.S. 

equity market. The VIX measures 

market expectations of near term 

volatility conveyed by the prices of 

options on the SPX. It provides 

investors with up-to-the-minute market 

estimates of expected stock market 

volatility over the next 30 calendar days 

by extracting implied volatilities from 

real-time index option bid/ask quotes. 

VIX Futures 

Information regarding VIX Futures 

can be found on the Web site of the 

CBOE Futures Exchange (the ‘‘CFE’’). 

The CFE began listing and trading VIX 

Futures since March 26, 2004 under the 

ticker symbol VX. VIX Futures trade 

between the hours of 8:30 a.m.—3:15 

p.m. Central Time (Chicago Time). 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) 6 of the Securities Exchange 

Act of 1934 (‘‘Act’’) in general, and 

furthers the objectives of Section 

6(b)(5) 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, 

together with the Exchange’s 

surveillance procedures applicable to 

trading in the securities covered by the 

proposed rules, 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 that is 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 solicited 

or received with respect to the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within 35 days of the date of 

publication of this notice in the Federal 

Register or within such longer period (i) 

as the Commission may designate up to 

90 days of such date if it finds such 

longer period to be appropriate and 

publishes its reasons for so finding or 

(ii) as to which the Exchange consents, 

the Commission will: 

A. By order approve such proposed 

rule change, or 

B. Institute proceedings to determine 

whether the proposed rule change 

should be disapproved. 

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–NYSEArca–2009–77 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–NYSEArca–2009–77. 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 inspection and copying 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. All 

comments received will be posted 

without change; the Commission does 

not edit personal identifying 

information from submissions. You 

should submit only information that 


cprice-sewell on DSKGBLS3C1PROD with NOTICES
46820 Federal Register / Vol. 74, No. 175 / Friday, September 11, 2009 / Notices 

8 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The Commission approved NYSE Arca Equities 

Rule 8.600 and the listing and trading of certain 

funds of the PowerShares Actively Managed Funds 

Trust on the Exchange pursuant to Rule 8.600 in 

Securities Exchange Act Release No. 57619 (April 

4, 2008) 73 FR 19544 (April 10, 2008) (SR– 

NYSEArca–2008–25). The Commission also 

previously approved listing and trading on the 

Exchange, or trading on the Exchange pursuant to 

unlisted trading privileges (‘‘UTP’’) of the following 

actively managed funds under Rule 8.600: 

Securities Exchange Act Release No. 57626 (April 

4, 2008), 73 FR 19923 (April 11, 2008) (SR– 

NYSEArca–2008–28) (order approving trading on 

the Exchange pursuant to UTP of Bear Stearns 

Active ETF); Securities Exchange Act Release No. 

57801 (May 8, 2008), 73 FR 27878 (May 14, 2008) 

(SR–NYSEArca–2008–31) (order approving 

Exchange listing and trading of twelve activelymanaged funds of the WisdomTree Trust); 

Securities Exchange Act Release No. 59826 (April 

28, 2009), 74 FR 20512 (May 4, 2009) (SR– 

NYSEArca–2009–22) (order approving Exchange 

listing and trading of Grail American Beacon Large 

Cap Value ETF); Securities Exchange Act Release 

No. 60460 (August 7, 2009), 74 FR 41468 (August 

17, 2009) (SR–NYSEArca–2009–55) (order 

approving Exchange listing and trading of Dent 

Tactical ETF). 

4See Registration Statement on Form N–1A for 

the Trust filed with the Securities and Exchange 

Commission on July 22, 2009 (File Nos. 333–155395 

and 811–22250) (the ‘‘Registration Statement’’). The 

descriptions of the Funds and the Shares contained 

herein are based on information in the Registration 

Statement. 

5The Exchange represents that the Adviser, as the 

investment adviser of the Funds, and its related 

personnel, are subject to Investment Advisers Act 

Rule 204A–1. This Rule specifically requires the 

adoption of a code of ethics by an investment 

advisor to include, at a minimum: (i) Standards of 

business conduct that reflect the firm’s/personnel 

fiduciary obligations; (ii) provisions requiring 

supervised persons to comply with applicable 

Federal securities laws; (iii) provisions that require 

all access persons to report, and the firm to review, 

their personal securities transactions and holdings 

periodically as specifically set forth in Rule 204A– 

1; (iv) provisions requiring supervised persons to 

report any violations of the code of ethics promptly 

to the chief compliance officer (‘‘CCO’’) or, 

provided the CCO also receives reports of all 

violations, to other persons designated in the code 

of ethics; and (v) provisions requiring the 

investment advisor to provide each of the 

supervised persons with a copy of the code of ethics 

with an acknowledgement by said supervised 

persons. In addition, Rule 206(4)–7 under the 

Advisers Act makes it unlawful for an investment 

advisor to provide investment advice to clients 

unless such investment advisor has (i) adopted and 

implemented written policies and procedures 

reasonably designed to prevent violation, by the 

investment advisor 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. 

6The Funds have made application for an order 

granting certain exemptive relief to the Trust under 

the Investment Company Act of 1940 (15 U.S.C. 

80a–1) (‘‘1940 Act’’). In compliance with 

Commentary .05 to NYSE Arca Equities Rule 8.600, 

which applies to Managed Fund Shares based on 

an international or global portfolio, the Trust’s 

application for exemptive relief under the 1940 Act 

states that the Funds will comply with the Federal 

securities laws in accepting securities for deposits 

and satisfying redemptions with redemption 

securities, including that the securities accepted for 

deposits and the securities used to satisfy 

redemption requests are sold in transactions that 

would be exempt from registration under the 

Securities Act of 1933 (15 U.S.C. 77a). 

you wish to make available publicly. All 

submissions should refer to File 

Number SR–NYSEArca–2009–77 and 

should be submitted on or before 

October 2, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–21886 Filed 9–10–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60619; File No. SR– 

NYSEArca–2009–79] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing of Proposed 

Rule Change Relating to Listing of Five 

Fixed Income Funds of the PIMCO ETF 

Trust 

September 3, 2009. 

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

Securities Exchange Act of 1934 (‘‘Act’’ 

or ‘‘Exchange Act’’) 1 and Rule 19b–4 

thereunder,2 notice is hereby given that, 

on August 27, 2009, NYSE Arca, Inc. 

(‘‘NYSE Arca’’ or ‘‘Exchange’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change as described in 

Items I, II, and III 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 

Pursuant to the provisions of Section 

19(b)(1) of the Exchange Act, NYSE 

Arca, through its wholly-owned 

subsidiary NYSE Arca Equities, Inc. 

(‘‘NYSE Arca Equities’’ or the 

‘‘Corporation’’), proposes to list and 

trade the shares of the following funds 

of the PIMCO ETF Trust (the ‘‘Trust’’) 

under NYSE Arca Equities Rule 8.600 

(Managed Fund Shares): PIMCO 

Enhanced Short Maturity Strategy Fund, 

PIMCO Government Limited Maturity 

Strategy Fund, PIMCO Intermediate 

Municipal Bond Strategy Fund, PIMCO 

Prime Limited Maturity Strategy Fund, 

and PIMCO Short Term Municipal Bond 

Strategy Fund, (each a ‘‘Fund’’ and, 

collectively, the ‘‘Funds’’). The shares of 

the Funds are collectively referred to 

herein as the ‘‘Shares.’’ 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://www.nyx.com, at the 

Exchange’s principal office 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 

The Exchange proposes to list and 

trade the Shares of the Funds under 

NYSE Arca Equities Rule 8.600, which 

governs the listing and trading of 

Managed Fund Shares on the 

Exchange.3 Each of the Funds will be an 

actively managed exchange traded fund. 

The Shares will be offered by the Trust, 

which is a Delaware statutory trust. The 

Trust is registered with the Commission 

as an investment company.4

Description of the Shares and the Funds 

Pacific Investment Management 

Company LLC (‘‘PIMCO’’) is the 

investment adviser (‘‘Adviser’’) to each 

Fund.5 State Street Bank & Trust Co. is 

the custodian and transfer agent for the 

Funds. The Trust’s Distributor is Allianz 

Global Investors Distributors LLC (the 

‘‘Distributor’’), an indirect subsidiary of 

Allianz Global Investors of America L.P. 

(‘‘AGI’’), PIMCO’s parent company. The 

Distributor is a registered brokerdealer.6

Commentary .07 to Rule 8.600 

provides that, if the investment adviser 

to the Investment Company issuing 

Managed Fund Shares is affiliated with 

a broker-dealer, such investment adviser 

shall erect a ‘‘fire wall’’ between the 

investment adviser and the brokerdealer with respect to access to 


cprice-sewell on DSKGBLS3C1PROD with NOTICES