Federal Register / Vol. 72, No. 38 / Tuesday, February 27, 2007 / Notices 8831 

22See supra note 5. 

23 17 CFR 240.12f–5. 

24 15 U.S.C. 78k–1(a)(1)(C)(iii). 

25 15 U.S.C. 78s(b)(2). 

26 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 55173 

(January 25, 2007), 72 FR 4552. 

4Phlx Rule 803(k)(3) currently requires, among 

other things, that each of the underlying securities 

linked to a BLN either: (i) Have a minimum market 

capitalization of $3 billion and during the 12 

months preceding listing are shown to have traded 

at least 2.5 million shares; (ii) have a minimum 

market capitalization of $1.5 billion and during the 

12 months preceding listing are shown to have 

traded at least 10 million shares; or (iii) have a 

minimum market capitalization of $500 million and 

during the 12 months preceding listing are shown 

to have traded at least 15 million shares. 

5See Securities Exchange Act Release No. 43690 

(December 7, 2000), 65 FR 78523 (December 15, 

2000) (SR–Phlx–2000–90). 

trading pursuant to UTP on the 

Exchange the shares issued by the 

CurrencyShares Trusts, which are 

similar to the Shares issued by the 

Trust.22 The Commission finds that the 

proposal is consistent with Rule 12f-5 

under the Act,23 which provides that an 

exchange shall not extend UTP to a 

security unless the exchange has in 

effect a rule or rules providing for 

transactions in the class or type of 

security to which the exchange extends 

UTP. The Exchange has represented that 

it meets this requirement because it 

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. 

The Commission further believes that 

the proposal is consistent with Section 

11A(a)(1)(C)(iii) of the Act,24 which sets 

forth Congress’ finding that it is in the 

public interest and appropriate for the 

protection of investors and the 

maintenance of fair and orderly markets 

to assure the availability to brokers, 

dealers, and investors of information 

with respect to quotations for and 

transactions in securities. The last sale 

price of the Shares is available through 

CTS. Although the CTS does not 

provide for dissemination of the spot 

price of the Japanese Yen, the Trust’s 

Web site disseminates the spot price 

every five to ten seconds, as well as the 

IIV per Share at least every 15 seconds, 

the NAV once daily, the Basket Amount, 

and the last sale price of the Shares. In 

addition, currency prices and market 

information on the Japanese Yen, 

including futures and options prices, are 

available through various major market 

data vendors, financial information 

sources, and professional and 

subscription services. If the listing 

market halts trading in the Shares, or 

the IIV or the value of the underlying 

currency is not being calculated or 

disseminated, the Exchange would halt 

trading in the Shares. 

The Commission notes that, if the 

Shares should be delisted by the listing 

exchange, the Exchange would no 

longer have authority to trade the Shares 

pursuant to this Order. 

In support of this proposal, the 

Exchange has made the following 

representations: 

(1) The Exchange’s surveillance 

procedures are adequate to address any 

concerns associated with the trading of 

the Shares on a UTP basis. 

(2) The Exchange would inform its 

members in an Information Bulletin of 

the special characteristics and risks 

associated with trading the Shares, 

including suitability recommendation 

requirements. 

(3) The Exchange would require its 

members to deliver a prospectus or 

product description to investors 

purchasing Shares prior to or 

concurrently with a transaction in such 

Shares and will note this prospectus 

delivery requirement in the Information 

Bulletin. 

This approval order is conditioned on 

the Exchange’s adherence to these 

representations. 

The Commission finds good cause for 

approving this proposal before the 

thirtieth day after the publication of 

notice thereof in the Federal Register. 

As noted above, the Commission 

previously approved the original listing 

and trading of the Shares on NYSE and 

the trading of shares issued by the 

CurrencyShares Trusts, which are 

similar to the Shares issued by the 

Trust, pursuant to UTP on the 

Exchange. The Commission presently is 

not aware of any regulatory issue that 

should cause it to revisit those findings 

or would preclude the trading of the 

Shares on the Exchange pursuant to 

UTP. Accelerating approval of this 

proposal should benefit investors by 

creating, without undue delay, 

additional competition in the market for 

such Shares. 

V. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,25 that the 

proposed rule change (SR–NYSEArca–

2007–15) be, and it hereby is, approved 

on an accelerated basis. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.26

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–3291 Filed 2–26–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55321; File No. SR–Phlx–

2006–85] 

Self-Regulatory Organizations; 

Philadelphia Stock Exchange, Inc.; 

Order Granting Accelerated Approval 

of Proposed Rule Change Relating To 

Listing Standards for Basket Linked 

Notes 

February 21, 2007. 

I. Introduction 

On December 12, 2006, the 

Philadelphia Stock Exchange, Inc. 

(‘‘Phlx’’ 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 a proposal to amend Phlx 

Rule 803—Criteria for Listing—Tier 1, to 

increase the number of underlying 

securities that may be linked to a Basket 

Linked Note (‘‘BLN’’). The proposed 

rule change was published for comment 

in the Federal Register on January 31, 

2007 for a 15-day comment period.3 The 

Commission received no comments 

regarding the proposal. This order 

approves the proposed rule change on 

an accelerated basis. 

II. Description of the Proposal 

A BLN is non-convertible debt of an 

issuer whose value is based, at least in 

part, on the performance of highly 

capitalized, actively traded common 

stock, or non-convertible preferred stock 

of other issuers.4 Rule 803(k) currently 

permits the Exchange to list and trade 

BLNs linked to more than one equity 

security but no more than 20.5 Phlx 

proposes to amend Rule 803(k) to 

increase the number of underlying 

securities that may be linked to a BLN 

from no more than 20 to no more than 

30. 


cprice-sewell on PROD1PC62 with NOTICES
8832 Federal Register / Vol. 72, No. 38 / Tuesday, February 27, 2007 / Notices 

6 In approving this proposed rule change, the 

Commission has considered the proposed rule’s 

impact on efficiency, competition, and capital 

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

7 15 U.S.C. 78f. 

8 15 U.S.C. 78f(b)(5). 

9See Amex Company Guide Section 107B; and 

Securities Exchange Act Release No. 47055 

(December 19, 2002), 67 FR 79669 (December 30, 

2002) (SR–Amex–2002–110). 

10 15 U.S.C. 78s(b)(2). 

11 15 U.S.C. 78s(b)(2). 

12CFR 200.30–3(a)(12). 

III. Discussion 

After careful consideration, the 

Commission finds that the proposed 

rule change is consistent with the 

requirements of the Act and the rules 

and regulations thereunder applicable to 

a national securities exchange 6 and, in 

particular, the requirements of Section 6 

of the Act.7 Specifically, the 

Commission finds that the proposed 

rule change is consistent with Section 

6(b)(5) of the Act,8 which requires, 

among other things, that the rules of a 

national securities exchange be 

designed 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. 

The Commission believes that 

expanding the basket of equity 

securities that may be linked to a BLN 

may enhance competition and benefit 

investors and the marketplace through 

additional product choices and 

alternatives. The Commission does not 

believe that there would be investor 

protection concerns with expanding the 

number of equity securities that may be 

linked to a BLN from more than one 

common stock to up to thirty common 

stocks. The Commission notes that the 

proposed rule change to Phlx’s listing 

standards for BLNs, specifically Phlx 

Rule 803(k), is substantially similar to 

the listing standards of the American 

Stock Exchange LLC regarding equity 

linked term notes, which are 

substantially similar investment 

products.9

The Commission finds good cause to 

grant accelerated approval of the 

proposed rule change because it will 

enable the Exchange to immediately 

consider listing and trading a BLN 

consistent with the rules of other 

national securities exchanges and does 

not raise any new regulatory issues. 

Accordingly, the Commission finds 

good cause for approving the proposed 

rule change prior to the thirtieth day 

after the notice is published for 

comment in the Federal Register 

pursuant to Section 19(b)(2) of the 

Act.10

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,11 that the 

proposed rule change (SR–Phlx–2006–

85) is hereby approved on an 

accelerated basis. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.12

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–3292 Filed 2–26–07; 8:45 am] 

BILLING CODE 8010–01–P 

SMALL BUSINESS ADMINISTRATION 

National Advisory Council Public 

Meeting 

The U.S. Small Business 

Administration (SBA) National 

Advisory Council public meeting 

originally scheduled for Tuesday, 

February 27, 2007, will be cancelled and 

rescheduled to Wednesday, February 

28, 2007 at 2 p.m. The meeting will take 

place using an audio/web conference 

system. To participate, please call our 

toll free conferencing service at 1–866–

740–1260 and enter access code 

3711001 at the prompt. The purpose of 

the meeting is to provide and discuss 

recent updates pertaining to the delivery 

of the Agency’s programs and services. 

Information will be presented by the 

staff of the SBA, members of the council 

or interested others. Anyone wishing to 

attend or to make a presentation must 

contact Mina Wales in writing, phone or 

e-mail in order to be put on the agenda. 

Mina Wales, NAC Designated Federal 

Officer, SBA Headquarters, 409 3rd 

Street SW., Washington, DC 20416, 

phone (202) 205–8414, e-mail: 

mina.wales@sba.gov. For more 

information about the National 

Advisory Council, see our Web site at 

http://www.sba.gov/nac/index.html. 

Matthew Teague, 

Committee Management Officer. 

[FR Doc. E7–3268 Filed 2–26–07; 8:45 am] 

BILLING CODE 8025–01–P 

DEPARTMENT OF STATE 

[Public Notice 5693] 

Notice of Proposal To Extend the 

Memorandum of Understanding 

Between the Government of the United 

States of America and the Government 

of the Republic of Guatemala 

Concerning the Imposition of Import 

Restrictions on Archaeological Objects 

and Materials from the Pre-Columbian 

Cultures of Guatemala 

The Government of the Republic of 

Guatemala has informed the 

Government of the United States of its 

interest in an extension of the 

Memorandum of Understanding 

Between the Government of the United 

States of America and the Government 

of the Republic of Guatemala 

Concerning the Imposition of Import 

Restrictions on Archaeological Objects 

and Materials from the Pre-Columbian 

Cultures of Guatemala which entered 

into force on September 29, 1997, and 

was extended on September 29, 2002. 

Pursuant to the authority vested in the 

Assistant Secretary for Educational and 

Cultural Affairs, and pursuant to the 

requirement under 19 U.S.C. 2602(f)(1), 

an extension of this Memorandum of 

Understanding is hereby proposed. 

Pursuant to 19 U.S.C. 2602(f)(2), the 

views and recommendations of the 

Cultural Property Advisory Committee 

regarding this proposal will be 

requested. 

A copy of the Memorandum of 

Understanding, the designated list of 

restricted categories of material, and 

related information can be found at the 

following Web site: http:// 

exchanges.state.gov/culprop. 

Dina Habib Powell, 

Assistant Secretary for Educational and 

Cultural Affairs, Department of State. 

[FR Doc. E7–3384 Filed 2–26–07; 8:45 am] 

BILLING CODE 4710–05–P 

DEPARTMENT OF STATE 

[Public Notice 5694] 

Notice of Proposal To Extend the 

Memorandum of Understanding 

Between the Government of the United 

States of America and the Government 

of the Republic of Mali Concerning the 

Imposition of Import Restrictions on 

Archaeological Material From the 

Region of the Niger River Valley and 

the Bandiagara Escarpment (Cliff) 

The Government of the Republic of 

Mali has informed the Government of 

the United States of its interest in an 

extension of the Memorandum of 


cprice-sewell on PROD1PC62 with NOTICES