13846 Federal Register / Vol. 72, No. 56 / Friday, March 23, 2007 / Notices 

21 15 U.S.C. 78k–1(a)(1)(C)(iii). 

22 15 U.S.C. 78s(b)(2). 

23 17 CFR 200.30–3(a)(12). 

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

2The Depository Trust Company (‘‘DTC’’) has 

submitted a similar proposed rule change (File No. 

SR–DTC–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. 

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,21 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 are publicly available on the 

Web site of the Funds and Amex. Such 

Web sites also disseminate information 

about the current and most recent NAV 

per Share, the Bid-Ask Price of the 

Shares, and discount and premium 

information of the Bid-Ask Price against 

the NAV. The Index Sponsor calculates 

and publishes through the facilities of 

the CT and major market data vendors 

the intra-day values of each Index at 

least every 15 seconds during regular 

trading hours and the closing levels of 

each Index. In addition, Amex 

disseminates through the CT for each of 

the Funds on a per-Share basis an 

updated Indicative Fund Value, which 

generally reflects the cash required for 

creations and redemptions of Shares, at 

least every 15 seconds during the 

trading day. The Administrator 

calculates and simultaneously 

disseminates once each business day to 

all market participants the NAV per 

Share and publishes the most recent 

Cash Deposit Amount on a per-Share 

basis. Also, the daily settlement prices 

of and other applicable information 

regarding the DX Contracts, 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, automated 

quotation systems, and other financial 

information services. 

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 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 the 

foregoing 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 is 

consistent with the Act. The 

Commission presently is not aware of 

any regulatory issue that should cause it 

to revisit that finding or would 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 such 

Shares. 

V. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,22 that the 

proposed rule change (SR–NASDAQ–

2007–023) be, and it hereby is, approved 

on an accelerated basis. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.23

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–5348 Filed 3–22–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55490; File No. SR–NSCC–

2007–02] 

Self-Regulatory Organizations; 

National Securities Clearing 

Corporation; 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 National 

Securities Clearing Corporation 

(‘‘NSCC’’) 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 NSCC. 

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 NSCC, 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 NSCC 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, 

NSCC 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. NSCC 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 

NSCC and DTC. 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


sroberts on PROD1PC70 with NOTICES
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