13842 Federal Register / Vol. 72, No. 56 / Friday, March 23, 2007 / Notices 

18 17 CFR 200.30–3(a)(12). 

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

2The National Securities Clearing Corporation 

(‘‘NSCC’’) has submitted a similar proposed rule 

change (File No. SR–NSCC–2007–02). 

3The Commission has modified parts of these 

statements. 

4For purposes of this rule filing, the term ‘‘CDS 

Omnibus Accounts’’ shall not include CDS’s 

additional accounts established pursuant to the 

Multiple Account Number Agreement, dated 

October 27, 2006 between CDS and NSCC and the 

Additional Account Agreement, dated October 27, 

2006 between DTC and CDS. 

5Securities Exchange Act Release No. 40523 

(October 6, 1998), 63 FR 54739 (October 13, 1998) 

(File No. SR–DTC–97–22). 

6Securities Exchange Act Release No. 52784 

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

2005) [File No. SR–DTC–2005–08]. 

7 ‘‘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. 

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 CBOE. 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–CBOE–2007–28 and should 

be submitted on or before April 13, 

2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.18

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–5308 Filed 3–22–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55488; File No. SR–DTC–

2007–02] 

Self-Regulatory Organizations; The 

Depository Trust Company; Notice of 

Filing and Immediate Effectiveness of 

a Proposed Rule Change Related to 

Fees Charged to the CDS Clearing and 

Depository Services, Inc. 

March 19, 2007. 

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

Securities Exchange Act of 1934 

(‘‘Act’’),1 notice is hereby given that on 

January 26, 2007, The Depository Trust 

Company (‘‘DTC’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III below, which items have been 

prepared primarily by DTC. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The proposed rule change would 

permit DTC, effective February 1, 2007, 

to cease to charge fees for ‘‘Covered 

Services’’ in ‘‘Omnibus Accounts’’ (as 

each term is defined below) to the CDS 

Clearing and Depository Services, Inc. 

(‘‘CDS’’), formerly, the Canadian 

Depository for Securities Ltd., in 

exchange for CDS agreeing not to charge 

DTC for such services.2

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

DTC 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 IV below. DTC has prepared 

summaries, set forth in sections (A), (B), 

and (C) below, of the most significant 

aspects of such statements.3

(A) Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

The purpose of the proposed rule 

change is to facilitate the efficient 

processing of cross-border securities 

transactions between the U.S. and 

Canada. CDS is a participant in both 

DTC and NSCC. CDS holds securities in 

the name of Cede & Co., DTC’s nominee 

name, in one or more omnibus accounts 

at DTC and also has a clearance account 

at NSCC (collectively the ‘‘CDS 

Omnibus Accounts’’).4

In 1998, the SEC approved a proposed 

rule change to allow DTC to open an 

omnibus account at CDS thereby 

creating a two-way DTC–CDS interface.5

DTC is a participant in CDS and holds 

securities in the nominee name of CDS 

& Co., CDS’s nominee name, in one or 

more omnibus accounts in the 

depository and the settlement service 

operated by CDS (‘‘CDSX’’) (‘‘DTC 

Omnibus Accounts’’). The two-way 

interface allows but does not require 

DTC positions in CDS-eligible issues to 

be held in DTC’s account at CDS. The 

CDS Omnibus Accounts and the DTC 

Omnibus Accounts shall be collectively 

referred to as the ‘‘Omnibus Accounts.’’

In 2005, the Commission approved a 

proposed rule change to allow DTC to 

operate 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.6

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 7

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 in exchange for CDS no longer 

charging DTC and NSCC for similar 

services. 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. As most 

of the activity processed in each of the 

Omnibus Accounts relates to reciprocal 

services which are charged to DTC, 

NSCC and CDS respectively 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 DTC 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. 


sroberts on PROD1PC70 with NOTICES
Federal Register / Vol. 72, No. 56 / Friday, March 23, 2007 / Notices 13843 

8 15 U.S.C. 78s(b)(3)(A)(ii). 

9 17 CFR 240.19b–4(f)(2). 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

(B) Self-Regulatory Organization’s 

Statement on Burden on Competition 

DTC 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. DTC will notify 

the Commission of any written 

comments received by DTC. 

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 DTC, it has become effective 

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

Act 8 and Rule 19b–4(f)(2) 9 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–DTC–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–DTC–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 DTC and on 

DTC’s Web site at http://www.dtc.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–DTC–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.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–5351 Filed 3–22–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55489; File No. SR–

NASDAQ–2007–023] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Order Granting Accelerated 

Approval of Proposed Rule Change To 

Trade the Shares of the PowerShares 

DB U.S. Dollar Index Bullish Fund and 

the PowerShares DB U.S. Dollar Index 

Bearish Fund Pursuant to Unlisted 

Trading Privileges 

March 19, 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 March 9, 

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 the Exchange. 

This Order provides notice of the 

proposed rule change and approves 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 proposes to trade shares of the 

PowerShares DB U.S. Dollar Index 

Bullish Fund (the ‘‘Bullish Fund’’) and 

the PowerShares DB U.S. Dollar Index 

Bearish Fund (the ‘‘Bearish Fund,’’ and 

together with the Bullish Fund, the 

‘‘Funds’’) pursuant to unlisted trading 

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

proposed rule change is available at 

Nasdaq, the Commission’s Public 

Reference Room, and 

nasdaq.complinet.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 Nasdaq Rule 4630, which 

permits the Exchange to approve for 

UTP trading a ‘‘commodity-related 

security’’ that is issued by a trust, 

partnership, commodity pool, or similar 

entity that invests in any combination of 

commodities, futures contracts, options 

on futures contracts, forward contracts, 

commodity swaps, or other related 

derivatives, the Exchange proposes to 

trade pursuant to UTP the shares of the 

Funds (the ‘‘Shares’’). 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’’). A proposal to list and trade the 

Shares by the American Stock Exchange 


sroberts on PROD1PC70 with NOTICES