Federal Register / Vol. 72, No. 56 / Friday, March 23, 2007 / Notices 13847 

5Securities Exchange Act Release No. 52784 

(November 16, 2005), 70 FR 70902 (November 23, 

2005) [File No. SR–DTC–2005–08]. 

6 ‘‘Covered Services’’ includes such services as: 

(a) Messaging and conversion of messages, (b) 

clearing, (c) monthly account charges, (d) 

deliveries/receives, (e) deposits and withdrawals, (f) 

custody, (g) asset servicing (dividends, 

reorganizations), (h) tax services, including U.S. 

and Canadian tax withholding, as applicable, and 

non-U.S. Tax Relief and Foreign Currency Payments 

via the Elective Dividend Service (EDS), (i) 

communications/networking, (j) money settlement 

(and roll-up), (k) reconciliation, and (l) any other 

services agreed to between DTC, NSCC, and CDS in 

writing. 

7 15 U.S.C. 78s(b)(3)(A)(ii). 

8 17 CFR 240.19b–4(f)(2). 

9 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

CDS operates the New York Link 

Service, which enables CDS Participants 

to clear and settle transactions with DTC 

Participants through sponsored 

accounts maintained by CDS with DTC 

and NSCC. Through such sponsored 

accounts, CDS Participants may clear 

and settle transactions on a trade for 

trade basis or on a continuous net 

settlement basis through the facilities of 

DTC and NSCC. DTC operates the 

Canadian-Link Service, which enables 

DTC Participants to clear and settle 

transactions with CDS Participants 

through an omnibus account maintained 

by DTC at CDS.5

In order to more efficiently facilitate 

cross-border clearance and settlement 

DTC, NSCC, and CDS have agreed not 

to charge each other for Covered 

Services 6 in Omnibus Accounts. 

Currently, DTC, NSCC, and CDS 

charge fees in accordance with their 

respective standard fee schedules for 

securities clearing, settlement, and asset 

servicing in their respective Omnibus 

Accounts. The proposed rule change 

would provide that instead of invoicing 

each other each month for services in 

the Omnibus Accounts, DTC and NSCC 

will no longer charge CDS for Covered 

Services in Omnibus Accounts in 

exchange for CDS no longer charging 

DTC and NSCC for similar services. As 

most of the activity processed in each of 

the Omnibus Accounts relates to 

reciprocal services which are charged to 

DTC, NSCC, and CDS at different rates 

(e.g., DTC would be charged in 

accordance with the standard CDS fee 

schedule and vice versa) not charging 

each other for Covered Services will 

ensure that the fees of NSCC and CDS 

are more equitably aligned. 

DTC, NSCC, and CDS will continue to 

charge their respective participants for 

activity in the Omnibus Accounts. 

This proposed rule change is 

consistent with the requirements 

Section 17A of the Act and the rules and 

regulations thereunder because it 

recognizes that most of the activity in 

the Omnibus Accounts represents the 

processing of reciprocal activity in 

similar services used by each of the 

entities which are charged to DTC, 

NSCC, and CDS at different rates. As 

such, it provides for a more equitable 

allocation of fees charged by DTC and 

NSCC. 

(B) Self-Regulatory Organization’s 

Statement on Burden on Competition 

NSCC does not believe that the 

proposed rule change would have any 

impact or impose any burden on 

competition. 

(C) Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

Written comments relating to the 

proposed rule change have not yet been 

solicited or received. NSCC will notify 

the Commission of any written 

comments received by NSCC. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing rule change 

changes fees charged clearing members 

by NSCC, it has become effective 

pursuant to Section 19(b)(3)(A)(ii) of the 

Act 7 and Rule 19b–4(f)(2) 8 thereunder. 

At any time within sixty 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–NSCC–2007–02 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–NSCC–2007–02. 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 

Section, 100 F Street, NE., Washington, 

DC 20549. Copies of such filing also will 

be available for inspection and copying 

at the principal office of NSCC and on 

NSCC’s Web site at http://www.nscc.org. 

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–NSCC–2007–02 and should 

be submitted on or before April 13, 

2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.9

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–5350 Filed 3–22–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55484; File No. SR–

NYSEArca–2006–67] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and Order 

Granting Accelerated Approval of a 

Proposed Rule Change as Modified by 

Amendment No. 1 Thereto To Trade 

Shares of the PowerShares DB U.S. 

Dollar Index Funds Pursuant to 

Unlisted Trading Privileges 

March 16, 2007. 

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

Securities Exchange Act of 1934, as 

amended, (‘‘Act’’) 1 and Rule 19b–4 

thereunder,2 notice is hereby given that 


sroberts on PROD1PC70 with NOTICES
13848 Federal Register / Vol. 72, No. 56 / Friday, March 23, 2007 / Notices 

3 In April 2006, the Commission approved 

Commentary .02 to NYSE Area Equities Rule 8.200, 

which sets forth the rules related to listing and 

trading criteria for Investment Shares, and approved 

trading pursuant to UTP the shares of the DB 

Commodity Index Tracking Fund. See Securities 

Exchange Act Release No. 53736 (April 27, 2006), 

71 FR 26582 (May 5, 2006) (SR–PCX–2006–22). 

4See Securities Exchange Act Release No. 55292 

(February 14, 2007), 72 FR 8406 (February 26, 2007) 

(the ‘‘Amex Order’’). 

5Pursuant to a telephone conversation between 

Andrew Stevens, Assistant General Counsel, NYSE 

and Ronesha A. Butler, Special Counsel, Division 

of Market Regulation (‘‘Division’’), Commission, on 

March 14, 2007, this paragraph was added to clarify 

the creation and redemption process for the Shares. 

6Amex has represented that the Managing Owner 

would seek to arrange to have each Index calculated 

and disseminated at least every 15 seconds on a 

daily basis through a third party if the Index 

Sponsor ceases to calculate and disseminate an 

Index. If, however, the Managing Owner is unable 

to arrange the calculation and dissemination of any 

Index value, the Amex has represented that it will 

undertake to delist the Shares related to such Index. 

In such case, the Exchange would halt trading such 

Shares. See Amex Order, supra note 4. 

on September 28, 2006, NYSE Arca, Inc. 

(‘‘NYSE Arca’’ or ‘‘Exchange’’), through 

its wholly owned subsidiary NYSE Arca 

Equities, Inc. (‘‘NYSE Arca Equities’’) 

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 the 

Exchange. On March 6, 2006, the 

Exchange filed Amendment No. 1 to the 

proposed rule change. The Commission 

is publishing this notice to solicit 

comments on the proposed rule change, 

as amended, from interested persons. 

This order provides notice of the 

proposed rule change as modified by 

Amendment No. 1 and approves the 

proposed rule change as amended on an 

accelerated basis. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange is proposing to trade 

shares (‘‘Shares’’) of the PowerShares 

DB U.S. Dollar Index Bullish Fund and 

the PowerShares DB U.S. Dollar Index 

Bearish Fund (collectively the ‘‘Funds’’) 

pursuant to unlisted trading privileges 

(‘‘UTP’’) under Commentary .02 to 

NYSE Arca Equities Rule 8.200. The text 

of the proposed rule change is available 

at the Exchange, the Commission’s 

Public Reference Room, and http:// 

nysearca.com. 

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 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 

Pursuant to Commentary .02 to NYSE 

Arca Equities Rule 8.200, the Exchange 

may approve for listing and trading trust 

issued receipts (‘‘TIRs’’) investing in 

shares or securities (‘‘Investment 

Shares’’) that hold investments in any 

combination of futures contracts, 

options on futures contracts, forward 

contracts, commodities, swaps or high 

credit quality short-term fixed income 

securities or other securities.3 The 

Commission previously approved a 

proposal to list and trade the Shares by 

the American Stock Exchange LLC (the 

‘‘Amex’’).4

The Exchange proposes to trade 

pursuant to UTP the Shares of the 

Funds under Commentary .02 to NYSE 

Arca Equities Rules 8.200. The Shares 

represent beneficial ownership interests 

in the corresponding common units of 

beneficial interests of the DB U.S. Dollar 

Index Master Bullish Fund and the DB 

U.S. Dollar Index Master Bearish Fund, 

respectively (collectively, the ‘‘Master 

Funds’’). 

The overall investment objective of 

each of the Funds and the Master Funds 

is to reflect the performance of their 

respective benchmark index, less 

expenses, plus the excess, if any, of the 

corresponding Master Fund’s interest 

income from its holdings of U.S. 

Treasury and other high credit quality 

short-term fixed income securities over 

its expenses. The Bullish Fund will seek 

to track the ‘‘Long Index’’ by investing 

in long positions in futures contracts 

(‘‘DX Contracts’’) on the U.S. Dollar 

Index (USDX) while the Bearish Fund 

will seek to track the ‘‘Short Index’’ by 

investing in short positions in DX 

Contracts on the USDX (collectively, the 

‘‘Indexes’’). Both the Long Index and 

Short Index (collectively, the ‘‘Indexes’’) 

are designed to reflect the return from 

investing in the first-to-expire DX 

Contract. DX Contracts are traded 

through the FINEX currency markets of 

the New York Board of Trade 

(‘‘NYBOT’’). As discussed more fully in 

the Amex Notice, the USDX is 

composed of six underlying foreign 

currencies (the ‘‘Index Currencies’’), and 

the value of the USDX reflects a general 

indication of the international value of 

the U.S. Dollar (‘‘USD’’) by averaging 

the exchange rates between the USD and 

the Index Currencies. 

The use of a long position in a DX 

Contract in the construction of the Long 

Index would cause the Long Index level 

to rise as a result of any upward price 

movement in the DX Contract. 

Conversely, the use of a short position 

in a DX Contract in the construction of 

the Short Index would cause the Short 

Index level to rise as a result of any 

downward price movement in the DX 

Contract. As a result, the performance of 

the Long Index and Short Index would 

reflect any rise or fall of the USD versus 

the underlying basket of Index 

Currencies. 

The Shares. Issuances of the Shares 

will be made only in one or more blocks 

of 200,000 Shares (each such block, a 

‘‘Basket’’). Each of the Funds will issue 

and redeem Shares on a continuous 

basis, by or through participants that 

have entered into participant 

agreements (each, an ‘‘Authorized 

Participant’’) with the Managing Owner 

at the net asset value (‘‘NAV’’) per Share 

next determined after an order to 

purchase a Basket is received in proper 

form. A Basket will be issued in 

exchange for a cash amount equal to the 

NAV per Share times 200,000 Shares 

(the ‘‘Cash Deposit Amount’’). The Bank 

of New York (the ‘‘Administrator’’) will 

determine the Cash Deposit Amount on 

each business day. An Authorized 

Participant that wishes to purchase a 

Basket must transfer the Cash Deposit 

Amount to the Administrator. 

Authorized Participants that wish to 

redeem a Basket will receive cash in 

exchange for each Basket surrendered in 

an amount equal to the NAV per 

Basket.5

Availability of Information About the 

Indexes, the Underlying DX Contracts 

and the Shares. As set forth in the Amex 

Order, information regarding the Shares 

will be available through the Amex, 

Deutsche Bank AG London (the ‘‘Index 

Sponsor’’), and various independent 

sources. The Index Sponsor will 

calculate the values of the Indexes 

during the trading day and such values 

will be disseminated at least every 15 

seconds through major market data 

vendors and the Index Sponsor’s Web 

site.6 The Amex will also disseminate 

for each of the Funds on a per-Share 

basis an updated ‘‘Indicative Fund 

Value’’ (or ‘‘IFV’’), which reflects the 

cash required for creations and 

redemptions for each Fund, adjusted to 

reflect the price changes of the DX 

Contracts and the holdings of U.S. 


sroberts on PROD1PC70 with NOTICES
Federal Register / Vol. 72, No. 56 / Friday, March 23, 2007 / Notices 13849 

7The Amex has represented that if the NAV per 

Share for any Fund is not disseminated to all 

market participants at the same time, it would halt 

trading in the Shares of such Fund. See Amex 

Order, supra note 4. 

8The Exchange clarified and represented that, in 

addition to the requirements contained in NYSE 

Arca Equities Rule 7.12, the Exchange will halt 

trading if the IFV or the value of the Index is not 

longer available at least every 15 seconds. 

Telephone conversation between Andrew Stevens, 

Assistant General Counsel, NYSE and Ronesha A. 

Butler, Special Counsel, Division, Commission, on 

March 14, 2007. 9See NYSE Arca Equities Rule 7.12. 

10See Letter to George T. Simon, Esq., Foley & 

Lardner LLP, from Racquel L. Russell, Branch Chief, 

Office of Trading Practices and Processing, 

Commission, dated June 21, 2006. 

Treasury securities and other highcredit-quality, short-term fixed income 

securities, at least every 15 seconds 

from 9:30 a.m. to 4:15 p.m. Eastern Time 

(‘‘ET’’). Shortly after 4 p.m. ET each 

business day, the Administrator will 

determine the NAV for each of the 

Funds, and the NAV per Share for each 

of the Funds will be disseminated to all 

market participants at the same time.7

According to the Amex Order, on 

each business day, the Administrator 

will make available immediately prior 

to the opening of trading on the Amex 

the most recent Cash Deposit Amount 

for the creation of a Basket, and the 

Amex will disseminate the current 

value of the Cash Deposit Amount on a 

per-Share basis at least every 15 seconds 

throughout the trading day. The daily 

settlement prices of the DX Contracts, 

specific contract specifications, and 

delayed futures contract information on 

current and past trading sessions, 

including futures quotes and last sale 

information, are publicly available on 

NYBOT’s Web site and on the Web sites 

of various market data vendors, news 

publications, automated quotation 

systems, or other financial information 

services. 

The Amex also intends to disseminate 

on a daily basis for each of the Funds 

information with respect to the daily 

trading volume of each of the Shares, 

the number of Shares outstanding, the 

closing prices of each Fund’s Shares, the 

corresponding NAV, and a hyperlink on 

its Web site to the Index Sponsor’s Web 

site. 

The Web site for the Funds is 

http://www.dbfunds.db.com. The Web 

site for the Funds and/or Amex, which 

is publicly accessible at no charge, will 

contain the following information: (1) 

The current NAV per Share daily, the 

prior business day’s NAV, and the 

reported closing price; (2) 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’’); (3) the 

calculation of the premium or discount 

of such price against such NAV; (4) 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; (5) 

the prospectus; and (6) other applicable 

quantitative information. 

UTP Trading Criteria. The Exchange 

represents that it will cease trading the 

Shares of a Fund if: (a) the listing 

market stops trading the Shares because 

of a regulatory halt similar to a halt 

based on NYSE Arca Equities Rule 7.12 

or halt trading because the IFV or the 

value of the Index is no longer available 

at least every 15 seconds 8; or (b) the 

listing market delists the Shares. 

Additionally, the Exchange may cease 

trading the Shares if such other event 

shall occur or condition exists which in 

the opinion of the Exchange makes 

further dealings on the Exchange 

inadvisable. UTP trading in the Shares 

is also governed by the trading halts 

provisions of NYSE Arca Equities Rule 

7.34 relating to temporary interruptions 

in the calculation or wide dissemination 

of the Intraday Indicative Value (which 

would encompass the IFV) or the value 

of the underlying index. 

Trading Rules. The Exchange 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 Shares will trade on the 

NYSE Arca Marketplace from 9:30 a.m. 

until 4:15 p.m. ET. The Exchange has 

appropriate rules to facilitate 

transactions in the Shares during this 

trading session. The minimum trading 

increment for Shares on the Exchange 

will be $0.01. 

The trading of the Shares will be 

subject to Commentary .02(e)(1)–(4) to 

NYSE Arca Equities Rule 8.200, which 

sets forth certain restrictions on ETP 

Holders acting as registered Market 

Makers in TIRs that invest in Investment 

Shares to facilitate surveillance. See 

‘‘Surveillance’’ below for more 

information. 

With respect to trading halts, the 

Exchange may consider all relevant 

factors in exercising its discretion to 

halt or suspend trading in the Shares. 

Trading 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 DX Contracts, or 

(2) whether other unusual conditions or 

circumstances detrimental to the 

maintenance of a fair and orderly 

market are present. In addition, trading 

in Shares will be subject to trading halts 

caused by extraordinary market 

volatility pursuant to the Exchange’s 

‘‘circuit breaker’’ rule 9 or by the halt or 

suspension of trading of the DX 

Contract. See ‘‘UTP Trading Criteria’’

above for specific instances when the 

Exchange will cease trading the Shares. 

The Shares will not be subject to the 

short sale rule pursuant to a letter 

issued in response to a request for noaction advice under Rule 10a–1 under 

the Act.10

Surveillance. The Exchange intends to 

utilize its existing surveillance 

procedures applicable to derivative 

products to monitor trading in the 

Shares. The Exchange represents that 

these procedures are adequate to 

properly monitor Exchange trading of 

the Shares and to deter and detect 

violations of Exchange rules. 

The Exchange’s current trading 

surveillance focuses on detecting 

securities trading outside their normal 

patterns. When such situations are 

detected, surveillance analysis follows 

and investigations are opened, where 

appropriate, to review the behavior of 

all relevant parties for all relevant 

trading violations. 

Further, trading in the Shares will be 

subject to Commentary .02(e)(1)–(4) to 

NYSE Arca Equities Rule 8.200, which 

sets forth certain restrictions on ETP 

Holders acting as registered Market 

Makers in TIRs that invest in Investment 

Shares to facilitate surveillance. 

Commentary .02(e)(1) to NYSE Arca 

Equities Rule 8.200 requires that the 

ETP Holder acting as a registered Market 

Maker in the Shares provide the 

Exchange with information relating to 

its trading in the underlying physical 

asset or commodity, related futures or 

options on futures, or any other related 

derivatives. Commentary .02(e)(4) to 

NYSE Arca Equities Rule 8.200 

prohibits the ETP Holder acting as a 

registered Market Maker in the Shares 

from using any material nonpublic 

information received from any person 

associated with an ETP Holder or 

employee of such person regarding 

trading by such person or employee in 

the underlying physical asset or 

commodity, related futures or options 

on futures or any other related 

derivative (including the Shares). In 

addition, Commentary .02(e)(1) to NYSE 

Arca Equities Rule 8.200 prohibits the 

ETP Holder acting as a registered Market 

Maker in the Shares from being 

affiliated with a market maker in the 

underlying physical asset or 

commodity, related futures or options 

on futures or any other related 

derivative unless adequate information 

barriers are in place, as provided in 


sroberts on PROD1PC70 with NOTICES
13850 Federal Register / Vol. 72, No. 56 / Friday, March 23, 2007 / Notices 

11For a list of the current members and affiliate 

members of ISG, see http://www.isgportal.com. 

12The Exchange recently amended NYSE Arca 

Equities Rule 9.2(a) (‘‘Diligence as to Accounts’’) to 

provide that ETP Holders, before recommending a 

transaction, must have reasonable grounds to 

believe that the recommendation is suitable for the 

customer based on any facts disclosed by the 

customer as to his other security holdings and as 

to his financial situation and needs. Further, the 

proposed rule amendment provides, with a limited 

exception, that prior to the execution of a 

transaction recommended to a non-institutional 

customer, the ETP Holders shall make reasonable 

efforts to obtain information concerning the 

customer’s financial status, tax status, investment 

objectives, and any other information that they 

believe would be useful to make a recommendation. 

See Securities Exchange Act Release No. 54045 

(June 26, 2006), 71 FR 37971 (July 3, 2006) (SR–

PCX–2005–115). 

13 15 U.S.C. 78f(b). 

14 15 U.S.C. 78f(b)(5). 

15 17 CFR 240.12f–5. 

16 In approving this rule change, the Commission 

notes that it has considered the proposed rule’s 

NYSE Arca Equities Rule 7.26. 

Commentary .02(e)(2)–(3) to NYSE Arca 

Equities Rule 8.200 requires that Market 

Makers handling the Shares provide the 

Exchange with all the necessary 

information relating to their trading in 

the underlying physical assets or 

commodities, related futures contracts 

and options thereon or any other 

derivative. 

The Exchange may obtain information 

via the Intermarket Surveillance Group 

(‘‘ISG’’) from other exchanges who are 

members or affiliates of the ISG, 

including NYBOT.11

Information Bulletin. 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: (1) The procedures for 

purchases and redemptions of Shares in 

Baskets (and that Shares are not 

individually redeemable); (2) NYSE 

Arca Equities Rule 9.2(a),12 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; (3) how information 

regarding the IFV is disseminated; (4) 

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 (5) trading 

information. 

In addition, the Information Bulletin 

will advise ETP Holders, prior to the 

commencement of trading, of the 

prospectus delivery requirements 

applicable to the Funds. The Exchange 

notes that investors purchasing Shares 

directly from a Fund (by delivery of the 

corresponding Cash Deposit Amount) 

will receive a prospectus. ETP Holders 

purchasing Shares from a Fund for 

resale to investors will deliver a 

prospectus to such investors. The 

Information Bulletin will also discuss 

any exemptive, no-action and 

interpretive relief granted by the 

Commission from any rules under the 

Act. 

In addition, the Information Bulletin 

will reference that the Funds are subject 

to various fees and expenses described 

in the Registration Statement. The 

Information Bulletin will also reference 

that the CFTC has regulatory 

jurisdiction over the trading of futures 

contracts. 

The Information Bulletin will also 

disclose the trading hours of the Shares 

of the Funds and that the NAV for the 

Shares will be calculated after 4 p.m. ET 

each trading day. The Bulletin will 

disclose that information about the 

Shares of each Fund and the 

corresponding Indexes will be publicly 

available on the Funds’ Web site. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) 13 of the Act, in general, and 

furthers the objectives of Section 

6(b)(5) 14 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, to 

remove impediments to and perfect the 

mechanism of a free and open market 

and a national market system. 

In addition, the proposed rule change 

is consistent with Rule 12f–5 15 under 

the Act because it deems the Shares to 

be equity securities, thus rendering the 

Shares subject to the Exchange’s rules 

governing the trading of equity 

securities. 

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 

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 Exchange 

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–2006–67 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–NYSEArca–2006–67. 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 File 

Number SR–NYSEArca–2006–67 and 

should be submitted on or before April 

13, 2007. 

IV. Commission’s Findings and Order 

Granting Accelerated Approval of the 

Proposed Rule Change 

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.16 In particular, the 


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Federal Register / Vol. 72, No. 56 / Friday, March 23, 2007 / Notices 13851 

impact on efficiency, competition, and capital 

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

17 15 U.S.C. 78f(b)(5). 

18 15 U.S.C. 78l(f). 

19Section 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. 

20See Amex Order, supra note 4. 

21 17 CFR 240.12f–5. 

22 15 U.S.C. 78k–1(a)(1)(C)(iii). 

23See Amex Order, supra note 4. 

24 15 U.S.C. 78s(b)(2). 25 17 CFR 200.30(a)(12). 

Commission finds that the proposed 

rule change is consistent with Section 

6(b)(5) of the Act,17 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. 

In addition, the Commission finds 

that the proposal is consistent with 

Section 12(f) of the Act,18 which permits 

an exchange to trade, pursuant to UTP, 

a security that is listed and registered on 

another exchange.19 The Commission 

notes that it previously approved the 

listing and trading of the Shares on the 

Amex.20 The Commission also finds that 

the proposal is consistent with Rule 

12f–5 under the Act,21 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 trading in the Shares will be 

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,22 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. 

Finally, the Commission notes that, if 

the Shares should be delisted by the 

Amex, the original 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 has appropriate rules 

to facilitate transactions in this type of 

security in this session. 

2. The Exchange’s surveillance 

procedures are adequate to properly 

monitor the trading of the Shares on the 

Exchange. The Exchange may obtain 

information via the ISG from other 

exchanges who are members or affiliates 

of the ISG, including NYBOT. In 

addition, to facilitate surveillance, the 

Exchange represents that trading in the 

Shares will be subject to Commentary 

.02(e)(1)–(4) to NYSE Arca Equities Rule 

8.200. 

3. The Exchange will inform its ETP 

Holders in an Information Bulletin of 

the special characteristics and risks 

associated with trading the Shares. 

4. The Exchange will require its ETP 

Holders to deliver a prospectus to 

investors purchasing newly issued 

Shares prior to or concurrently with the 

confirmation of a transaction and will 

note this prospectus delivery 

requirement in the Information Bulletin. 

5. The Exchange will cease trading the 

Shares of a Fund if: (a) the listing 

market stops trading the Shares because 

of a regulatory halt similar to a halt 

based on NYSE Arca Equities Rule 7.12 

or a halt because the IFV or the value 

of the applicable Index is no longer 

available at least every 15 seconds; or 

(b) the listing market delists the Shares. 

6. The Exchange will halt trading as 

provided in NYSE Arca Equities Rule 

7.34. 

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 previously, the Commission 

previously found that the listing and 

trading of the Shares on the Amex is 

consistent with the Act.23 The 

Commission presently is not aware of 

any regulatory issue that should cause it 

to revisit that earlier finding or preclude 

the trading of the Shares on the 

Exchange pursuant to UTP. Therefore, 

accelerating approval of this proposal 

should benefit investors by creating, 

without undue delay, additional 

competition in the market for the 

Shares. 

V. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,24 that the 

proposed rule change (SR–NYSEArca–

2006–67), as modified by Amendment 

No. 1 be, and it hereby is, approved on 

an accelerated basis. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.25

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–5316 Filed 3–22–07; 8:45 am] 

BILLING CODE 8010–01–P 

SOCIAL SECURITY ADMINISTRATION 

Agency Information Collection 

Activities: Proposed Request and 

Comment Request 

The Social Security Administration 

(SSA) publishes a list of information 

collection packages that will require 

clearance by the Office of Management 

and Budget (OMB) in compliance with 

Public Law 104–13, the Paperwork 

Reduction Act of 1995, effective October 

1, 1995. The information collection 

packages that may be included in this 

notice are for new information 

collections, approval of existing 

information collections, revisions to 

OMB-approved information collections, 

and extensions (no change) of OMBapproved information collections. 

SSA is soliciting comments on the 

accuracy of the agency’s burden 

estimate; the need for the information; 

its practical utility; ways to enhance its 

quality, utility, and clarity; and on ways 

to minimize burden on respondents, 

including the use of automated 

collection techniques or other forms of 

information technology. Written 

comments and recommendations 

regarding the information collection(s) 

should be submitted to the OMB Desk 

Officer and the SSA Reports Clearance 

Officer. The information can be mailed, 

faxed or e-mailed to the individuals at 

the addresses and fax numbers listed 

below: 

(OMB) Office of Management and 

Budget, Attn: Desk Officer for SSA, 

Fax: 202–395–6974, E-mail address: 

OIRA_Submission@omb.eop.gov. 

(SSA) Social Security Administration, 

DCFAM, Attn: Reports Clearance 

Officer, 1333 Annex Building, 6401 

Security Blvd., Baltimore, MD 21235, 

Fax: 410–965–6400, E-mail address: 

OPLM.RCO@ssa.gov. 

I. The information collections listed 

below are pending at SSA and will be 

submitted to OMB within 60 days from 

the date of this notice. Therefore, your 

comments should be submitted to SSA 


sroberts on PROD1PC70 with NOTICES