Federal Register / Vol. 72, No. 63 / Tuesday, April 3, 2007 / Notices 15929 

17See Section 703.16(C)(2)(b)(i) and (b)(ii) of the 

NYSE Manual. 

18See Securities Exchange Act Release No. 55544 

(March 27, 2007). NYSE Arca, Inc. has also 

proposed a parallel rule change, which the 

Commission is approving concurrently with this 

one. See Securities Exchange Act Release No. 55546 

(March 27, 2007). 

19 15 U.S.C. 78s(b)(2). 

20 15 U.S.C. 78s(b)(2). 

21 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3An ICU is defined in NYSE Arca Equities Rule 

5.1(b)(15) as a security representing an interest in 

a registered investment company that could be 

organized as a unit investment trust, an open-end 

management investment company, or a similar 

entity. A registered investment company is 

registered under the Investment Company Act of 

1940, 15 U.S.C. 80a et seq. 

4See Securities Exchange Act Release No. 55339 

(February 23, 2007), 72 FR 9820. 

5 17 CFR 240.19b–4(e). 

6See NYSE Arca Equities Rule 5.2(j)(3). 

7 17 CFR 240.19b–4(e). 

8 17 CFR 240.19b–4(e). 

9 In approving this proposed rule change, the 

Commission has considered the proposed rule’s 

impact on efficiency, competition, and capital 

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

10 15 U.S.C. 78f. 

11 15 U.S.C. 78f(b)(5). 

six months.17 Therefore, the 

Commission believes that indexes 

underlying ICUs will continue to be 

sufficiently broad-based in scope to 

minimize potential manipulation. 

Additionally, ICUs and their underlying 

indexes would continue to be subject to 

all other requirements of Section 703.16 

of the NYSE Manual. 

The Commission believes that 

accelerating approval of the proposed 

rule change would enable the Exchange 

and issuers to immediately benefit from 

the expected efficiencies resultant from 

this proposed rule change without delay 

while at the same time still ensuring 

adequate protection for investors and 

the public in general. The Commission 

notes that NYSE’s proposal 

substantively tracks a recently approved 

rule change by the American Stock 

Exchange LLC18 and raises no new 

regulatory issues. Thus, the Commission 

finds good cause, consistent with 

Section 19(b)(2) of the Act,19 to grant 

accelerated approval of the proposed 

rule change, as amended, prior to the 

thirtieth day after the notice is 

published for comment in the Federal 

Register. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,20 that the 

proposed rule change (SR–NYSE–2007–

12), as modified by Amendment No. 1, 

be, and is hereby approved on an 

accelerated basis. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.21

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–6084 Filed 4–2–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55546; File No. SR–

NYSEArca–2007–14] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Order Granting Accelerated 

Approval To a Proposed Rule Change 

to Amend Existing Rules for 

Investment Company Units To 

Eliminate Requirement Regarding 

Index Weighting and Calculation 

Methodology 

March 27, 2007. 

I. Introduction 

On February 8, 2007, 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’’), pursuant 

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

Exchange Act of 1934 (‘‘Act’’) 1 and Rule 

19b–4 thereunder,2 a proposal to revise 

its generic listing standards applicable 

to Investment Company Units 

(‘‘Investment Company Units’’ or 

‘‘ICUs’’) 3 to eliminate the requirement 

that the weighting and calculation 

methodology for the index underlying a 

series of ICUs must be one of those 

specified in Commentary .01(b)(1) to 

NYSE Arca Equities Rule 5.2(j)(3). The 

proposed rule change was published for 

comment in the Federal Register on 

March 5, 2007 for a 15-day comment 

period.4 The Commission received no 

comments regarding the proposal. This 

order approves the proposed rule 

change on an accelerated basis. 

II. Description of the Proposal 

The Exchange has proposed to amend 

its ‘‘generic’’ listing standard pursuant 

to Rule 19b–4(e) under the Act 5 for 

ICUs (which include exchange-traded 

funds) to eliminate the requirement that 

an eligible index be calculated and 

weighted according to a specific 

methodology. 

The Exchange currently has listing 

and trading standards, which permit the 

Exchange either to list and trade ICUs or 

trade such ICUs on the Exchange on an 

unlisted trading privileges (‘‘UTP’’) 

basis, subject to the procedures 

contained in Rule 19b–4(e) under the 

Act.6 The existence of generic listing 

standards allows qualifying ICUs to list 

or trade without the need to file a rule 

change for each security. Commentary 

.01(b)(1) to NYSE Arca Equities Rule 

5.2(j)(3) currently requires that, if a 

series of ICUs is listed for trading (or 

traded pursuant to UTP) on the 

Exchange in reliance upon Rule 19b–

4(e) under Rule 19b–4 under the Act,7

the index underlying the series must 

follow the market capitalization, 

modified market capitalization, price, 

equal-dollar or modified equal-dollar 

weighting methodology, or alternately, a 

methodology weighting components of 

the index based on any, some or all of 

the following: sales, cash flow, book 

value, and dividends. The proposed rule 

change would eliminate this standard, 

and, as a result, the Exchange would no 

longer consider index methodology in 

its review of an ICU’s eligibility for 

listing and trading pursuant to Rule 

19b–4(e) under the Act.8

III. Discussion 

After careful consideration, the 

Commission finds that the proposed 

rule change is consistent with the 

requirements of the Act and the rules 

and regulations thereunder applicable to 

a national securities exchange 9 and, in 

particular, the requirements of Section 6 

of the Act.10 Specifically, the 

Commission finds that the proposed 

rule change is consistent with Section 

6(b)(5) of the Act,11 which requires, 

among other things, that the rules of a 

national securities exchange be 

designed to prevent fraudulent and 

manipulative acts and practices, 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. 

As the market for ICUs has expanded, 

the variety of weighting and calculation 

methodologies for underlying indexes 

has grown, limiting the applicability of 

NYSE Arca’s current generic listing 

standards for ICUs. The Commission 

believes that eliminating the index 

methodology requirement from the 

Exchange’s generic listing standards for 

ICUs will facilitate bringing ICUs based 


ycherry on PROD1PC64 with NOTICES
15930 Federal Register / Vol. 72, No. 63 / Tuesday, April 3, 2007 / Notices 

12See Commentary .01(a)(3) to NYSE Arca 

Equities Rule 5.2(j)(3). 

13See Commentary .01(a)(4) to NYSE Arca 

Equities Rule 5.2(j)(3). 

14See Commentary .01(a)(1) and (2) to NYSE Arca 

Rule 5.2(j)(3). 

15See Securities Exchange Act Release No. 55544 

(March 27, 2007). The New York Stock Exchange 

LLC has also proposed a parallel rule change, which 

the Commission is approving concurrently with this 

one. See Securities Exchange Act Release No. 55545 

(March 27, 2007). 

16 15 U.S.C. 78s(b)(2). 

17 15 U.S.C. 78s(b)(2). 

18 17 CFR 200.30–3(a)(12). 

on indexes with nontraditional 

weighting techniques to the market, 

encourage innovation in index 

construction, reduce costs to issuers and 

other market participants, and promote 

competition. 

The Commission believes that these 

goals may be furthered without 

compromising investor protection. The 

Commission notes that the numerical 

criteria in Commentary .01 to NYSE 

Arca Equities Rule 5.2(j)(3) addressing 

concentration, diversity, and liquidity of 

an underlying index’s components 

would continue to apply. For example, 

the generic listing standards for 

domestic indexes will continue to 

require, without limitation, that the 

most heavily weighted component stock 

of an index not exceed 30% of the 

weight of the index, and the five most 

heavily weighted component stocks of 

an index not exceed 65% of the weight 

of the index,12 and that an index 

include a minimum of 13 component 

stocks.13 In addition, component stocks 

that in the aggregate account for at least 

90% of the weight of the index must 

have a market value of at least $75 

million and minimum monthly trading 

volume of at least 250,000 shares for 

each of the last six months.14 Therefore, 

the Commission believes that indexes 

underlying ICUs will continue to be 

sufficiently broad-based in scope to 

minimize potential manipulation. 

Additionally, ICUs and their underlying 

indexes would continue to be subject to 

all other requirements of NYSE Arca 

Equities Rule 5.2(j)(3). 

The Commission believes that 

accelerating approval of the proposed 

rule change would enable the Exchange 

and issuers to immediately benefit from 

the expected efficiencies resultant from 

this proposed rule change without delay 

while at the same time still ensuring 

adequate protection for investors and 

the public in general. The Commission 

notes that NYSE Arca’s proposal 

substantively tracks a recently approved 

rule change by the American Stock 

Exchange LLC15 and raises no new 

regulatory issues. Thus, the Commission 

finds good cause, consistent with 

Section 19(b)(2) of the Act,16 to grant 

accelerated approval of the proposed 

rule change, as amended, prior to the 

thirtieth day after the notice is 

published for comment in the Federal 

Register. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,17 that the 

proposed rule change (SR–NYSEArca–

2007–14) be, and is hereby approved on 

an accelerated basis. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.18

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–6085 Filed 4–2–07; 8:45 am] 

BILLING CODE 8010–01–P 

DEPARTMENT OF STATE 

[Public Notice 5739] 

Additional Designation of Entity 

Pursuant to Executive Order 13382 

AGENCY: Department of State. 

ACTION: Designation of the Defense 

Industries Organization Under 

Executive Order 13382. 

SUMMARY: Pursuant to the authority in 

section 1(ii) of Executive Order 13382, 

‘‘Blocking Property of Weapons of Mass 

Destruction Proliferators and Their 

Supporters’’, the Assistant Secretary of 

State, acting under the authorities 

delegated to him by the Secretary of 

State, in consultation with the Secretary 

of the Treasury and the Attorney 

General, has determined that an Iranian 

entity, the Defense Industries 

Organization (‘‘DIO’’), has engaged, or 

attempted to engage, in activities or 

transactions that have materially 

contributed to, or pose a risk of 

materially contributing to, the 

proliferation of weapons of mass 

destruction or their means of delivery. 

DATES: The designation by the Secretary 

of State of the entity identified in this 

notice pursuant to Executive Order 

13382 is effective on March 30, 2007. 

FOR FURTHER INFORMATION CONTACT: 

Director, Office of Counterproliferation 

Initiatives, Bureau of International 

Security and Nonproliferation, 

Department of State, Washington, DC 

20520, tel.: 202/647–7895. 

Background 

On June 28, 2005, the President, 

invoking the authority, inter alia, of the 

International Emergency Economic 

Powers Act (50 U.S.C. 1701–1706) 

(‘‘IEEPA’’), issued Executive Order 

13382 (70 FR 38567, July 1, 2005) (the 

‘‘Order’’), effective at 12:01 a.m. eastern 

daylight time on June 29, 2005. In the 

Order the President took additional 

steps with respect to the national 

emergency described and declared in 

Executive Order 12938 of November 14, 

1994, regarding the proliferation of 

weapons of mass destruction and the 

means of delivering them. 

Section 1 of the Order blocks, with 

certain exceptions, all property and 

interests in property that are in the 

United States, or that hereafter come 

within the United States or that are or 

hereafter come within the possession or 

control of United States persons, of: (1) 

The persons listed in the Annex to the 

Order; (2) any foreign person 

determined by the Secretary of State, in 

consultation with the Secretary of the 

Treasury, the Attorney General, and 

other relevant agencies, to have 

engaged, or attempted to engage, in 

activities or transactions that have 

materially contributed to, or pose a risk 

of materially contributing to, the 

proliferation of weapons of mass 

destruction or their means of delivery 

(including missiles capable of delivering 

such weapons), including any efforts to 

manufacture, acquire, possess, develop, 

transport, transfer or use such items, by 

any person or foreign country of 

proliferation concern; (3) any person 

determined by the Secretary of the 

Treasury, in consultation with the 

Secretary of State, the Attorney General, 

and other relevant agencies, to have 

provided, or attempted to provide, 

financial, material, technological or 

other support for, or goods or services 

in support of, any activity or transaction 

described in clause (2) above or any 

person whose property and interests in 

property are blocked pursuant to the 

Order; and (4) any person determined 

by the Secretary of the Treasury, in 

consultation with the Secretary of State, 

the Attorney General, and other relevant 

agencies, to be owned or controlled by, 

or acting or purporting to act for or on 

behalf of, directly or indirectly, and 

person whose property and interests in 

property are blocked pursuant to the 

Order. 

On March 28, 2007, the Secretary of 

State, in consultation with the Secretary 

of the Treasury, the Attorney General, 

and other relevant agencies, designated 

a person whose property and interests 

in property are blocked pursuant to 

Executive Order 13382. 

Information on the additional 

designee is as follows: 

1. Defense Industries Organization 

(a.k.a. Defence Industries Organisation; 

a.k.a. DIO; a.k.a. Saseman Sanaje Defa; 


ycherry on PROD1PC64 with NOTICES