10280 Federal Register / Vol. 72, No. 44 / Wednesday, March 7, 2007 / Notices 

15See Nasdaq Rule 4751(f)(8). 

For purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

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

16For purposes of calculating the 60-day period 

within which the Commission may summarily 

abrogate the proposed rule change under Section 

19(b)(3)(C) of the Act, the Commission considers 

the period to commence on February 16, 2007, the 

date on which ISE filed Amendment No. 1. See 15 

U.S.C. 78s(b)(3)(C). 

17 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. 51058 

(January 19, 2005), 70 FR 3749 (January 26, 2005) 

(SR–Amex–2004–38). 

4On November 16, 2006, the Commission 

approved a rule filing by Nasdaq to adopt Rule 

Commission believes that waiving the 

30-day operative delay is consistent 

with the protection of investors and the 

public interest, because the proposed 

rule change is substantially similar to a 

rule previously approved by the 

Commission.15 For this reason, the 

Commission designates that the 

proposal become operative immediately. 

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.16

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–ISE–2007–14 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 File 

Number SR–ISE–2007–14. 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 office of the ISE. 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–ISE–2007–14 and should be 

submitted on or before March 28, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.17

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–4042 Filed 3–6–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55380; File No. SR–

NASDAQ–2007–014] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Order Granting Accelerated 

Approval of Proposed Rule Change 

Relating to the Trading of the iShares 

COMEX Gold Trust Pursuant to 

Unlisted Trading Privileges 

March 1, 2007. 

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

Securities Exchange Act of 1934 

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

notice is hereby given that on February 

28, 2007, The NASDAQ Stock Market 

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

with the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change as described in 

Items I and II below, which Items have 

been substantially prepared by Nasdaq. 

The Commission is publishing this 

notice to solicit comments on the 

proposed rule change from interested 

persons and is approving the proposed 

rule change on an accelerated basis. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

Nasdaq is proposing to trade shares 

(‘‘Shares’’) of the iShares COMEX Gold 

Trust (‘‘Trust’’) pursuant to unlisted 

trading privileges (‘‘UTP’’). The text of 

the proposed rule change is available 

from Nasdaq’s Web site at 

nasdaq.complinet.com, at Nasdaq’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, 

Nasdaq 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 III 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 

Nasdaq is proposing to trade the 

Shares on a UTP basis. Nasdaq is 

submitting this filing because its current 

listing standards do not extend to the 

Shares. However, systems operated by 

Nasdaq and its affiliates currently trade 

the Shares on an over-the-counter basis 

as facilities of NASD. This filing will 

allow Nasdaq to trade the Shares as an 

exchange. 

The Shares represent units of 

fractional undivided beneficial interest 

in and ownership of the Trust. The 

purpose of the Trust is to hold gold 

bullion, and the investment objective of 

the Trust is for the Shares to reflect the 

performance of the price of gold, less 

the Trust’s expenses. The Trust is not an 

investment company under the 

Investment Company Act of 1940. 

The Commission previously approved 

the listing and trading of the Shares on 

the American Stock Exchange LLC 

(‘‘Amex’’).3 Nasdaq deems the Shares to 

be equity securities, thus rendering 

trading in the Shares subject to Nasdaq’s 

existing rules governing the trading of 

equity securities, including Nasdaq Rule 

4630.4 The trading hours for the Shares 


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4630, which governs the trading of and surveillance 

procedures applicable to Commodity-Based Trust 

Shares. See Securities Exchange Act Release No. 

54765 (November 16, 2006), 71 FR 67668 

(November 22, 2006) (SR–NASDAQ–2006–009). 

Because gold is included within the rule’s 

definition of a commodity, Rule 4630 is applicable 

to the Shares. 

5An ‘‘Authorized Participant’’ is a person, who 

at the time of submitting to the trustee an order to 

create or redeem one or more Baskets: (a) Is a 

registered broker-dealer, (b) is a Depository Trust 

Company (‘‘DTC’’) Participant or Indirect 

Participant, and (c) has in effect a valid Authorized 

Participant Agreement. 

6The Bank of New York, as trustee of the Trust 

(the ‘‘Trustee’’) calculates the NAV by multiplying 

the fine ounces of gold held by the Trust (after gold 

has been sold for that day to pay that day’s fees and 

expenses of the Trust) by the daily settlement value 

of the COMEX spot month gold futures contract. 

7At the same time, the Trustee determines an 

‘‘Indicative Basket Gold Amount’’ that Authorized 

Participants can use as an indicative amount of gold 

to be deposited for issuance of the Shares on the 

next business day. The Trustee disseminates daily 

the Indicative Basket Gold Amount on the Trust’s 

Web site (http://www.ishares.com). Because the 

creation/redemption process is based entirely on 

the physical delivery of gold (and does not 

contemplate a cash component), the actual number 

of fine ounces required for the Indicative Basket 

Gold Amount does not change intraday, even 

though the value may change based on the market 

price of gold. 

8The Indicative Trust Value is calculated based 

on the estimated amount of gold required for 

creations and redemptions on that day (e.g., 

Indicative Basket Gold Amount) and a price of gold 

derived from the most recently reported trade price 

in the active gold futures contract. The prices 

reported for the active contract month will be 

adjusted based on the prior day’s spread differential 

between settlement values for that contract and the 

spot month contract. In the event that the spot 

month contract is also the active contract, the last 

sale price for the active contract will not be 

adjusted. The Indicative Trust Value will not reflect 

changes to the price of gold between the close of 

trading at the COMEX, typically 1:30 p.m. ET, and 

the open of trading on the NYMEX ACCESS market 

at 2 p.m. ET. While the market for the gold futures 

is open for trading, the Indicative Trust Value can 

be expected to closely approximate the value per 

share of the Indicative Basket Gold Amount. The 

Indicative Trust Value on a per-Share basis 

disseminated during Amex trading hours should 

not be viewed as a real-time update of the NAV, 

which is calculated only once a day. 

9The Trust’s Web site’s gold spot price is 

provided by The Bullion Desk (http:// 

thebulliondesk.com), which is not affiliated with 

Amex, the Trust, the Trustee, or the sponsor of the 

Trust. 

on Nasdaq would be 9:30 a.m. to 4 p.m. 

Eastern Time (‘‘ET’’). 

Shares are issued only in baskets of 

50,000 shares or multiples thereof (such 

aggregation referred to as the ‘‘Basket 

Aggregation’’ or ‘‘Basket’’). The Trust 

issues and redeems the Shares on a 

continuous basis, by or through 

participants that have entered into 

participant agreements (each, an 

‘‘Authorized Participant’’) 5 at the net 

asset value (‘‘NAV’’) 6 per Share next 

determined after an order to purchase or 

redeem Shares in a Basket Aggregation 

is received in proper form. Authorized 

Participants are the only persons that 

may place orders to create and redeem 

Baskets. Authorized Participants 

purchasing Baskets are able to separate 

a Basket into individual Shares for 

resale. 

Basket Aggregations are issued in 

exchange for a corresponding amount of 

gold, measured in fine ounces (the 

‘‘Basket Gold Amount’’). The Basket 

Gold Amount is determined at or about 

4 p.m. ET each business day by the 

Trustee.7 On each day that Amex is 

open for regular trading, the Trustee 

adjusts the quantity of gold constituting 

the Basket Gold Amount as appropriate 

to reflect sales of gold, any loss of gold 

that may occur, and accrued expenses. 

The Trustee determines the Basket Gold 

Amount for a given business day by 

multiplying the NAV for each Share by 

the number of Shares in each Basket 

(50,000) and dividing the resulting 

product by that day’s COMEX 

settlement price for the spot month gold 

futures contract. Authorized 

Participants that submitted an order 

prior to 4 p.m. ET to purchase a Basket 

must transfer the Basket Gold Amount 

to the Trust in exchange for a Basket. 

Quotations for and last sale 

information regarding the Shares are 

disseminated through the Consolidated 

Tape System. The Web site for the Trust 

at http://www.ishares.com, which is 

publicly accessible at no charge, 

contains the following information 

about the Shares: (a) The prior business 

day’s NAV, Basket Gold Amount, the 

reported closing price, and the present 

day’s Indicative Basket Gold Amount; 

(b) the mid-point of the bid-ask price in 

relation to the NAV as of the time the 

NAV is calculated (the ‘‘Bid-Ask 

Price’’); (c) calculation of the premium 

or discount of such price against such 

NAV; (d) data in chart form displaying 

the frequency distribution of discounts 

and premiums of the Bid-Ask Price 

against the NAV, within appropriate 

ranges for each of the four previous 

calendar quarters; (e) the Prospectus; 

and (f) other applicable quantitative 

information, such as expense ratios, 

trading volumes, and the total return of 

the Shares. Nasdaq will provide a 

hyperlink from its Web site (http:// 

www.nasdaq.com) to the Trust’s Web 

site. 

Nasdaq will also provide a hyperlink 

on its Web site to the Amex Web site at 

http://www.amex.com, on which Amex 

will make available daily trading 

volume, closing prices, and the NAV 

from the previous day for the Shares. 

Amex also disseminates during regular 

Amex trading hours from 9:30 a.m. to 

4:15 p.m. ET through the facilities of the 

Consolidated Tape Association (‘‘CTA’’) 

the last sale price for the Shares on a 

real-time basis. In addition, Amex 

disseminates each day the prior day’s 

NAV and shares outstanding through 

the facilities of the CTA. Amex also 

disseminates the Indicative Trust Value 

on a per-Share basis every 15 seconds 

through the facilities of the CTA during 

regular Amex trading hours of 9:30 a.m. 

to 4:15 p.m. ET.8 Shortly after 4 p.m. ET 

each business day, the Trustee, Amex, 

and the sponsor of the Trust will 

disseminate the NAV for the Shares, the 

Basket Gold Amount (for orders placed 

during the day), and the Indicative 

Basket Gold Amount (for use by 

Authorized Participants contemplating 

placing orders the following business 

day). The Basket Gold Amount, the 

Indicative Basket Gold Amount, and the 

NAV are communicated by the Trustee 

to all Authorized Participants via 

facsimile or electronic mail and will be 

available on the Trust’s Web site at 

http://www.ishares.com. 

The Trust’s Web site also provides at 

no charge continuously updated bids 

and offers indicative of the spot price of 

gold.9 Complete real-time data for gold 

futures and options prices traded on the 

COMEX is available by subscription 

from Reuters and Bloomberg. The 

closing price and settlement prices of 

the COMEX gold futures contracts are 

publicly available from the NYMEX at 

http://www.nymex.com, automated 

quotation systems, published or other 

public sources, or on-line information 

services such as Bloomberg or Reuters. 

NYMEX also provides delayed futures 

and options information on current and 

past trading sessions and market news 

free of charge on its Web site. 

Nasdaq will halt trading in the Shares 

under the conditions specified in 

Nasdaq Rules 4120 and 4121. The 

conditions for a halt include a 

regulatory halt by the listing market. 

UTP trading in the Shares will also be 

governed by provisions of Nasdaq Rule 

4120(b) relating to temporary 

interruptions in the calculation or wide 

dissemination of the Indicative Trust 

Value (which is comparable to the 

intraday indicative value or the intraday 

optimized portfolio value of an ETF) or 

the value of the underlying COMEX 

gold futures contract. Additionally, 

Nasdaq may cease trading the Shares if 

other unusual conditions or 

circumstances exist which, in the 

opinion of Nasdaq, make further 

dealings on Nasdaq detrimental to the 

maintenance of a fair and orderly 

market. Nasdaq will also follow any 

procedures with respect to trading halts 

as set forth in Nasdaq Rule 4120(c). 


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10Surveillance of all trading on NASD facilities 

operated by Nasdaq, including the trading of the 

Shares, is currently being conducted by NASD. 

After Nasdaq begins to trade the Shares as an 

exchange, NASD will continue to surveil trading 

pursuant to a regulatory services agreement. Nasdaq 

is responsible for NASD’s performance under this 

regulatory services agreement. 

11 15 U.S.C. 78f(b). 

12 15 U.S.C. 78f(b)(5). 

13 17 CFR 240.12f–5. 

Finally, Nasdaq will stop trading the 

Shares if the listing market delists them. 

Nasdaq believes that its surveillance 

procedures are adequate to address any 

concerns about the trading of the Shares 

on Nasdaq. Trading of the Shares 

through NASD facilities operated by 

Nasdaq is currently subject to NASD’s 

surveillance procedures for equity 

securities in general and ETFs in 

particular. After Nasdaq begins to trade 

the Shares as an exchange, the NASD, 

on behalf of Nasdaq, will continue to 

surveil Nasdaq trading, including 

Nasdaq trading of the Shares. Nasdaq’s 

transition to exchange status will not 

result in any change in the surveillance 

process with respect to the Shares.10

Nasdaq is able to obtain information 

regarding trading in the Shares and the 

underlying COMEX gold futures 

contract through its members in 

connection with the proprietary or 

customer trades that such members 

effect on any relevant market. In 

addition, Nasdaq has entered into an 

Information Sharing Agreement with 

NYMEX for the purpose of providing 

information in connection with trading 

in or related to COMEX gold futures 

contracts. 

Nasdaq will distribute an Information 

Circular to its members in connection 

with the trading of the Shares. The 

Information Circular will discuss the 

special characteristics and risks of 

trading this type of security. 

Specifically, the Information Circular, 

among other things, will discuss what 

the Shares are, how a basket is created 

and redeemed, the requirement that 

members deliver a prospectus to 

investors purchasing the Shares prior to 

or concurrently with the confirmation of 

a transaction, applicable Nasdaq rules, 

dissemination information regarding the 

per-share Indicative Trust Value, and 

trading information. The Information 

Circular will also explain that the Gold 

Trust is subject to various fees and 

expenses described in the Registration 

Statement and that the number of 

ounces of gold required to create a 

basket or to be delivered upon 

redemption of a basket will gradually 

decrease over time because the Shares 

comprising a basket will represent a 

decreasing amount of gold due to the 

sale of the Trust’s gold to pay Trust 

expenses. The Information Circular will 

also reference the fact that there is no 

regulated source of last-sale information 

regarding physical gold and that the 

Commission has no jurisdiction over the 

trading of gold as a physical commodity. 

The Information Circular will also 

notify members about the procedures for 

purchases and redemptions of Shares in 

baskets and that Shares are not 

individually redeemable but are 

redeemable only in basket-size 

aggregations or multiples thereof. The 

Information Circular will advise 

members of their suitability obligations 

under Nasdaq Rule 2310 with respect to 

recommended transactions to customers 

in Shares. The Information Circular will 

also discuss any relief granted by the 

Commission or the staff from any rules 

under the Act. Finally, the Information 

Circular will disclose that the NAV for 

Shares will be disseminated shortly 

after 4 p.m. ET each trading day based 

on the COMEX daily settlement value, 

which is disseminated shortly after 1:30 

p.m. ET each trading day. 

2. Statutory Basis 

Nasdaq believes that the proposal is 

consistent with Section 6(b) of the Act 11

in general and Section 6(b)(5) of the 

Act 12 in particular, in that in that it is 

designed to prevent fraudulent and 

manipulative acts and practices, to 

promote just and equitable principles of 

trade, remove impediments to a free and 

open market and a national market 

system, and, in general, to protect 

investors and the public interest. In 

addition, Nasdaq believes that the 

proposal is consistent with Rule 12f–5 

under the Act 13 because it deems the 

Shares to be an equity securities, thus 

rendering trading in the Shares subject 

to Nasdaq’s existing rules governing the 

trading of equity securities. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

Nasdaq 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 

Written comments on the proposed 

rule change were neither solicited nor 

received. 

III. 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–2007–014 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Nancy M. Morris, Secretary, 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–1090. 

All submissions should refer to File 

Number SR–NASDAQ–2007–014. 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 Nasdaq. 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–2007–014 and 

should be submitted on or before March 

28, 2007. 

IV. Commission’s Findings and Order 

Granting Accelerated Approval of the 

Proposed Rule Change 

After careful review, 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 


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Federal Register / Vol. 72, No. 44 / Wednesday, March 7, 2007 / Notices 10283 

14 In approving this rule change, the Commission 

notes that it has considered the proposed rule’s 

impact on efficiency, competition, and capital 

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

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

16 15 U.S.C. 78l(f). 

17Section 12(a) of the Act, 15 U.S.C. 78l(a), 

generally prohibits a broker-dealer from trading a 

security on a national securities exchange unless 

the security is registered on that exchange pursuant 

to Section 12 of the Act. Section 12(f) of the Act 

excludes from this restriction trading in any 

security to which an exchange ‘‘extends UTP.’’

When an exchange extends UTP to a security, it 

allows its members to trade the security as if it were 

listed and registered on the exchange even though 

it is not so listed and registered. 

18See supra note 3 and Securities Exchange Act 

Release No. 51067 (January 21, 2005), 70 FR 3952 

(January 27, 2005) (SR–PCX–2004–132). 

19 17 CFR 240.12f–5. 

20 15 U.S.C. 78k–1(a)(1)(C)(iii). 

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. 

securities exchange.14 In particular, the 

Commission finds that the proposed 

rule change is consistent with Section 

6(b)(5) of the Act,15 which requires that 

an exchange have rules designed, among 

other things, 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 this proposal should 

benefit investors by increasing 

competition among markets that trade 

the Shares. 

In addition, the Commission finds 

that the proposal is consistent with 

Section 12(f) of the Act,16 which permits 

an exchange to trade, pursuant to UTP, 

a security that is listed and registered on 

another exchange.17 The Commission 

notes that it previously approved the 

listing and trading of the Shares on 

Amex and NYSE Arca, Inc.18 The 

Commission also finds that the proposal 

is consistent with Rule 12f–5 under the 

Act,19 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,20 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. Quotations for 

and last sale information regarding the 

Shares is disseminated through the 

Consolidated Tape System. The 

Commission notes that there is a 

considerable amount of gold price and 

gold market information available 24 

hours per day on public Web sites and 

through professional and subscription 

services, and the Exchange will link to 

the Amex and Trust Web sites, which 

provide trading information about the 

Shares. Furthermore, Amex 

disseminates the Indicative Trust Value 

on a per-Share basis every 15 seconds 

through the facilities of the CTA during 

regular Amex trading hours of 9:30 a.m. 

to 4:15 p.m. ET (except between 1:30 

p.m. and 2 p.m., the time from the close 

of regular trading of the COMEX gold 

futures contract and the start of trading 

of COMEX gold futures contracts on 

NYMEX ACCESS). The Commission 

also notes that the Trust’s Web site is 

publicly accessible at no charge and will 

contain the NAV of the Shares and the 

Basket Gold Amount as of the prior 

business day, the Bid-Ask Price, and a 

calculation of the premium or discount 

of the Bid-Ask Price in relation to the 

closing NAV. Additionally, the Trust’s 

Web site will also provide data in chart 

form displaying the frequency 

distribution of discounts and premiums 

of the Bid-Ask Price against the NAV, 

within appropriate ranges for each of 

the four previous calendar quarters; the 

Prospectus; and other applicable 

quantitative information. If Amex halts 

trading in the Shares, or the Indicative 

Trust Value or the value of the 

underlying COMEX gold futures 

contract 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 Circular 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 

Circular. 

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 found that the listing and 

trading of the Shares on Amex and 

NYSE Arca is consistent with the Act. 

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. Furthermore, accelerated approval 

of this proposal will facilitate Nasdaq’s 

ability to continue trading these 

securities as Nasdaq becomes an 

exchange with respect to non-Nasdaqlisted securities, where there appears to 

be no regulatory concerns about such 

trading. Therefore, 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,21 that the 

proposed rule change (SR–NASDAQ–

2007–014), be, and it hereby is, 

approved on an accelerated basis. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.22

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–4038 Filed 3–6–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55379; File No. SR–NASD–

2007–017] 

Self-Regulatory Organizations; 

National Association of Securities 

Dealers, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change to Amend the Alternative 

Display Facility Quotation Update Fee 

March 1, 2007. 

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

Securities Exchange Act of 1934 

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


sroberts on PROD1PC70 with NOTICES