Federal Register / Vol. 71, No. 183 / Thursday, September 21, 2006 / Notices 55257 

27 15 U.S.C. 78s(b)(2). 

28See Securities Exchange Act Release Nos. 

44990 (October 25, 2001), 66 FR 56869 (November 

13, 2001) (SR–Amex–2001–45); 42748 (May 2, 

2000), 65 FR 30155 (May 10, 2000) (SR–Amex–98–

49); and 36947 (March 8, 1996), 61 FR 10606 

(March 14, 1996) (SR–Amex–95–43). 

29See Securities Exchange Act Release No. 52178 

(July 29, 2005), 70 FR 46244 (August 9, 2005) (SR–

NYSE–2005–41) 

30 15 U.S.C. 78s(b)(2). 

31 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Form 19b–4 dated July 7, 2006 

(‘‘Amendment No. 3’’). Amendment No. 3 replaced 

and superseded the original filing and Amendments 

No. 1 and 2 in their entirety. 

4See Securities Exchange Act Release No. 54130 

(July 11, 2006), 71 FR 41305. 

5See letter from Arthur J. Gross, Arthur J. Gross 

SP, dated August 9, 2006, and letter from Gennaro 

J. Lettera, dated August 9, 2006. The Exchange 

believes that these commenters intended to address 

a separate proposed rule change, SR–NYSE–2006–

46, not the instant proposed rule change. See e-mail 

from Janet Angstadt, Acting General Counsel, NYSE 

Arca, to Timothy Fox, Special Counsel, Division of 

Market Regulation, Commission, dated August 16, 

2006. The Commission believes that the 

commenters’ concerns do not relate to the instant 

proposed rule change and, as such, these letters are 

not addressed in this order. 

6Amendment No. 4 was filed to reconcile the 

original filing, as amended, with the subsequent 

immediately effective rule filing, as discussed infra 

note 9 and accompanying text. Amendment No. 4 

replaces and supersedes the original filing and 

subsequent amendments in their entirety. 

7 ‘‘Linkage Orders’’ are immediate or cancel 

orders containing certain information that are 

routed through the Intermarket Linkage System 

(‘‘Linkage’’). See Section 2(16) of the Plan for the 

Purpose of Creating and Operating an Intermarket 

Option Linkage (‘‘Linkage Plan’’). As used in this 

approval order, the term, ‘‘Linkage Orders,’’ refers 

only to Principal Acting as Agent Orders and 

Principal Orders. See Sections 2(16)(a) and 2(16)(b) 

of the Linkage Plan. 

8These fees are applicable through an Exchange 

Pilot Program due to expire on July 31, 2007. See 

Securities Exchange Act Release No. 54230 (July 27, 

2006), 71 FR 44757 (August 7, 2006) (SR–

NYSEArca–2006–41). 

9See Securities Exchange Act Release No. 54309 

(August 11, 2006), 71 FR 48571 (August 21, 2006) 

(SR–NYSEArca–2006–25). 

also readily available in newspapers and 

other publications and from a variety of 

on-line services. 

Based on the representations made in 

the NYSE proposal, the Commission 

believes that pricing and other 

important information about the Fund is 

adequate and consistent with the Act. 

D. Listing and Trading 

The Commission finds that adequate 

rules and procedures exist to govern the 

listing and trading of the Funds’ shares. 

Fund shares will be deemed equity 

securities subject to NYSE rules 

governing the trading of equity 

securities, including, among others, 

rules governing trading halts, 

responsibilities of the specialist, 

account opening and customer 

suitability requirements, and the 

election of stop and stop limit orders. In 

addition, the Exchange states that 

iShares are subject to the criteria for 

initial and continued listing of ICUs in 

Section 703.16 of the NYSE Manual. 

E. Surveillance 

The Exchange represents that its 

surveillance procedures are adequate to 

properly monitor the trading of the 

Funds. The Exchange states that it is 

able to obtain trading information from 

ISG from other exchanges that are 

members or affiliates of the ISG. 

F. Accelerated Approval 

The Commission finds good cause, 

pursuant to section 19(b)(2) of the Act,27

for approving the proposed rule change 

prior to the thirtieth day after the date 

of publication of notice in the Federal 

Register. The Commission notes that the 

proposal is consistent with the listing 

and trading standards in NYSE Rule 

703.16 (ICUs), and the Commission has 

previously approved similar products 

based on foreign indices.28 The Funds 

are substantially identical in structure to 

other iShares Funds based on foreign 

stock indexes, including the iShares 

S&P Global 1200 Index Fund, which has 

an established and active trading history 

on the NYSE and other exchanges.29

The Commission does not believe that 

the proposed rule change, as amended, 

raises novel regulatory issues. 

Consequently, the Commission believes 

that it is appropriate to permit investors 

to benefit from the flexibility afforded 

by trading these products as soon as 

possible. 

V. Conclusion 

It is therefore ordered, pursuant to 

section 19(b)(2) of the Act, that the 

proposed rule change (SR–NYSE–2006–

60) is hereby approved on an 

accelerated basis.30

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.31

J. Lynn Taylor, 

Assistant Secretary. 

[FR Doc. 06–7896 Filed 9–20–06; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–54430; File No. SR–

NYSEArca–2006–20] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and Order 

Granting Accelerated Approval to 

Amendment No. 4 to a Proposed Rule 

Change Relating to the Exchange’s 

Schedule of Fees and Charges 

September 12, 2006. 

I. Introduction 

On May 17, 2006, NYSE Arca, Inc. 

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

with the Securities and Exchange 

Commission (‘‘Commission’’) pursuant 

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

Exchange Act of 1934 (‘‘Act’’),1 and 

Rule 19b–4 thereunder,2 the proposed 

rule change to amend the Trade Related 

Charges portion of its Schedule of Fees 

and Charges (‘‘Schedule’’). On May 26, 

2006, the Exchange filed Amendment 

No. 1 to the proposed rule change. On 

June 30, 2006, the Exchange filed 

Amendment No. 2 to the proposed rule 

change. On July 7, 2006, the Exchange 

filed Amendment No. 3 to the proposed 

rule change.3 The proposed rule change, 

as amended, was published for 

comment in the Federal Register on July 

20, 2006.4 Two comment letters were 

submitted in connection with this 

filing.5

On August 31, 2006, the Exchange 

filed Amendment No. 4.6 This order 

grants accelerated approval of 

Amendment No. 4, and solicits 

comments from interested persons on 

Amendment No. 4. 

I. Description of the Proposal 

A. Fees for Manually Executed Linkage 

Orders 

NYSE Arca proposes to combine two 

existing fees associated with certain 

Linkage Orders.7 Presently, the 

Exchange assesses on Linkage Orders a 

$0.21 transaction fee and a $0.05 

comparison fee.8 To simplify the 

Schedule, the Exchange proposes 

combining these fees into one 

transaction fee of $0.26 for Linkage 

Orders executed manually. This fee is 

equal to the fee for manually executed 

orders from broker-dealers. 

B. Fees for Electronically Executed 

Linkage Orders 

Under the current NYSE Arca 

Schedule, electronically executed orders 

from broker-dealers are charged $0.50 

per contract (‘‘BD Electronic 

Transaction Fee’’). The BD Electronic 

Transaction Fee was recently revised to 

combine a previously assessed 

transaction fee of $0.26 and a BD 

Surcharge of $0.25.9 The current $0.50 

BD Electronic Transaction Fee 

represents a $0.01 reduction in the total 

fee for electronic executions of orders 

from broker-dealers. In Amendment No. 

4, the Exchange proposes to modify its 

Schedule to make clear that 


jlentini on PROD1PC65 with NOTICES
55258 Federal Register / Vol. 71, No. 183 / Thursday, September 21, 2006 / Notices 

10The Schedule set forth the Transaction and 

Comparison fees assessed on Linkage Orders. 

11 In approving this proposed rule change, the 

Commission has considered the proposed rule’s 

impact on efficiency, competition, and capital 

formation. See 15 U.S.C. 78c(f). 

12 15 U.S.C. 78f(b)(4). 

13 15 U.S.C. 78s(b)(2). 

14See supra note 9. 

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

16 15 U.S.C. 78s(b)(2). 

17 17 CFR 200.30–3(a)(12). 

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

2Securities Exchange Act Release No. 54060 

(June 28, 2006), 71 FR 38961. 

3The amendment, as noted below, is not 

substantive and did not require republication of the 

notice. Infra, note 4 and accompanying text. 

electronically executed Linkage Orders 

also will be charged $0.50 per contract. 

The Exchange acknowledges that the 

Exchange’s previous version of its 

Schedule did not reflect that the BD 

Surcharge was imposed on 

electronically executed Linkage 

Orders.10 In Amendment No. 4, the 

Exchange proposes to modify the 

Schedule to make clear that the BD 

Surcharge will be included as a 

component of the $0.50 fee assessed for 

electronically executed Linkage Orders. 

III. Discussion and Commission 

Findings 

The Commission has reviewed 

carefully the proposed rule change, as 

amended, and finds that it is consistent 

with the requirements of the Act and the 

rules and regulations thereunder 

applicable to a national securities 

exchange.11 In particular, the 

Commission believes that the proposal 

is consistent with Section 6(b)(4) of the 

Act,12 which requires that the rules of 

an exchange provide an equitable 

allocation of reasonable dues, fees and 

other charges among its members and 

other persons using its facilities. Under 

the current NYSE Arca Schedule, 

manually executed BD orders are 

charged $0.26 per contract and 

electronically executed orders from 

broker-dealers are charged $0.50 per 

contract. The Exchange proposed that 

manually executed Linkage Orders be 

charged $0.26 per contract and 

electronically executed Linkage Orders 

be charged $0.50 per contract. 

Accordingly, the Commission believes 

that the Exchange’s proposed Schedule 

clearly sets forth the fees imposed on 

Linkage Orders. 

As discussed above, the Exchange 

acknowledges, in Amendment No. 4, 

that prior versions of its Schedule did 

not represent that the $0.25 BD 

Surcharge was applied to electronically 

executed Linkage Orders. Because the 

Exchange assessed the BD Surcharge on 

Linkage Orders prior to this approval 

and, therefore, without authority, 

parties assessed the BD Surcharge for 

Linkage Orders prior to the approval of 

this proposed rule change may seek 

reimbursement. 

The Commission finds good cause for 

approving proposed Amendment No. 4 

before the 30th day after the date of 

publication of notice of filing thereof in 

the Federal Register pursuant to Section 

19(b)(2) of the Act.13 The Exchange filed 

Amendment No. 4 to reconcile the 

proposed rules in the original filing, as 

amended, with the Exchange’s current 

rules, which reflect an immediately 

effective proposed rule change filed 

after this proposed rule change was 

published for comment.14 The 

Commission believes that in 

Amendment No. 4, the Exchange 

proposes no significant changes to the 

fees proposed in the original filing. 

Therefore, the Commission finds good 

cause exists to accelerate approval of 

Amendment No. 4, pursuant to Section 

19(b)(2) of the Act.15

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning Amendment No. 

4, including whether Amendment No. 4 

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–2006–20 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Nancy M. Morris, Secretary, 

Securities and Exchange Commission, 

Station Place, 100 F Street, NE., 

Washington, DC 20549–1090. 

All submissions should refer to 

Amendment No. 4 to SR–NYSEArca–

2006–20. 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. Copies of such filing also will be 

available for inspection and copying at 

the principal offices 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 Amendment 

No. 4 to SR–NYSEArca–2006–20 and 

should be submitted on or before 

October 12, 2006. 

V. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,16 that 

Amendment No. 4 to the proposed rule 

change (SR–NYSEArca–2006–20) be, 

and hereby is, approved on an 

accelerated basis. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.17

J. Lynn Taylor, 

Assistant Secretary. 

[FR Doc. 06–7842 Filed 9–20–06; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–54448; File No. SR–OCC–

2006–07] 

Self-Regulatory Organizations; The 

Options Clearing Corporation; Order 

Approving Proposed Rule Change 

Relating to a Surcharge for NonClearing Member Subscribers That 

Have Not Met a Mandated Conversion 

Date for Its Data Distribution Service 

September 14, 2006. 

I. Introduction 

On May 15, 2006, The Options 

Clearing Corporation (‘‘OCC’’) filed with 

the Securities and Exchange 

Commission (‘‘Commission’’) proposed 

rule change SR-OCC–2006–07 pursuant 

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

Exchange Act of 1934 (‘‘Act’’).1 Notice 

of the proposal was published in the 

Federal Register on July 10, 2006.2 On 

July 21, 2006, OCC amended the 

proposed rule change.3 No comment 

letters were received. For the reasons 

discussed below, the Commission is 

approving the proposed rule change. 


jlentini on PROD1PC65 with NOTICES