Federal Register / Vol. 72, No. 68 / Tuesday, April 10, 2007 / Notices 17973 

8 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(6). 

5NYSE Arca Equities Rules 5.1(b)(13), 5.2(j)(3), 

8.100, 8.200, 8.201, 8.202, 8.203, 8.300, and 8.400 

relate to Unit Investment Trusts, Investment 

Company Units, Portfolio Depositary Receipts, 

Trust Issued Receipts, Commodity-Based Trust 

Shares, Currency Trust Shares, Commodity Index 

Trust Shares, Partnership Units, and Paired Trust 

Shares, respectively. See Securities Exchange Act 

Release No. 54997 (December 21, 2006), 71 FR 

78501 (December 29, 2006) (SR–NYSEArca–2006–

77) (amending NYSE Arca Equities Rule 7.34). 

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. 

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–NYSE–2007–36 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–NYSE–2007–36. 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–NYSE–2007–36 and should 

be submitted on or before May 1, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.8

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–6673 Filed 4–9–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55577; File No. SR–

NYSEArca–2007–32] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Relating to NYSE Arca 

Marketplace Trading Sessions 

April 3, 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 23, 

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’’) the proposed rule 

change as described in Items I and II 

below, which Items have been 

substantially prepared by the Exchange. 

The Exchange filed the proposal 

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

Act 3 and Rule 19b–4(f)(6) thereunder,4

which renders the proposed rule change 

effective upon filing with the 

Commission. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes, through 

NYSE Arca Equities, to update the list 

in NYSE Arca Equities Rule 7.34 of 

securities eligible to trade in one or 

more, but not all three, of the 

Exchange’s trading sessions. The 

Exchange proposes to add to the list 

shares of certain Funds (‘‘Shares’’) that 

are traded on NYSE Arca, L.L.C. (‘‘NYSE 

Arca Marketplace’’), the equities trading 

facility of NYSE Arca Equities, pursuant 

to unlisted trading privileges (‘‘UTP’’). 

The text of the proposed rule change is 

available on the Exchange’s Web site 

(http://www.nysearca.com), at the 

principal office of the Exchange, 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, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change. The text of 

these statements may be examined at 

the places specified in Item IV 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 

NYSE Arca Equities Rule 7.34 

currently provides, in part, that NYSE 

Arca Marketplace shall have three 

trading sessions each day: an Opening 

Session (1 a.m. Pacific Time (‘‘PT’’) to 

6:30 a.m. PT), a Core Trading Session 

(6:30 a.m. PT to 1 p.m. PT) and a Late 

Trading Session (1 p.m. PT to 5 p.m. 

PT), and that the Core Trading Session 

for securities described in NYSE Arca 

Equities Rules 5.1(b)(13), 5.1(b)(18), 

5.2(j)(3), 8.100, 8.200, 8.201, 8.202, 

8.203, 8.300, and 8.400 (each, a 

‘‘Derivative Securities Product’’) shall 

conclude at 1:15 p.m. PT.5

NYSE Arca Equities Rule 7.34 

includes a list of those securities which 

are eligible to trade in one or more, but 

not all three, of the Exchange’s trading 

sessions. The Exchange maintains on its 

Internet Web site (http:// 

www.nysearca.com) a list that identifies 

all securities traded on the NYSE Arca 

Marketplace that do not trade for the 

duration of each of the three sessions 

specified in NYSE Arca Equities Rule 

7.34. The Exchange proposes to add the 

following securities to these list: (1) 

PowerShares DB Agriculture Fund; (2) 

PowerShares DB Base Metals Fund; (3) 

PowerShares DB Energy Fund; (4) 

PowerShares DB Gold Fund; (5) 

PowerShares DB Oil Fund; (6) 

PowerShares DB Precious Metals Fund; 

(7) PowerShares DB Silver Fund; (8) 

PowerShares DB U.S. Dollar Index 

Bearish Fund; and (9) PowerShares DB 


cprice-sewell on PROD1PC66 with NOTICES
17974 Federal Register / Vol. 72, No. 68 / Tuesday, April 10, 2007 / Notices 

6The Commission has approved the trading of 

Shares of the PowerShares DB Agriculture Fund, 

PowerShares DB Base Metals Fund, PowerShares 

DB Energy Fund, PowerShares DB Gold Fund, 

PowerShares DB Oil Fund, PowerShares DB 

Precious Metals Fund, and PowerShares DB Silver 

Fund on the NYSE Arca Marketplace pursuant to 

UTP. See Securities Exchange Act Release No. 

55453 (March 13, 2007), 72 FR 13333 (March 21, 

2007) (SR–NYSEArca–2006–62). The Commission 

has approved the trading of Shares of the 

PowerShares DB U.S. Dollar Index Bearish Fund 

and PowerShares DB U.S. Dollar Index Bullish 

Fund on the NYSE Arca Marketplace pursuant to 

UTP. See Securities Exchange Act Release No. 

55484 (March 16, 2007), 72 FR 13847 (March 23, 

2007) (SR–NYSEArca–2006–67). 7The Commission has approved trading of these 

securities on the NYSE Arca Marketplace pursuant 

to UTP. See Securities Exchange Act Release No. 

50799 (December 6, 2004), 69 FR 72242 (December 

13, 2004) (SR–PCX–2004–99). 8The Commission has approved the trading of 

these securities on the NYSE Arca Marketplace 

pursuant to UTP. See Securities Exchange Act 

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

(January 27, 2005) (SR–PCX–2004–132). 9 15 U.S.C. 78f(b). 

10 15 U.S.C. 78f(b)(5). 

11 15 U.S.C. 78s(b)(3)(A). 

12 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–

4(f)(6) requires an exchange to give the Commission 

written notice of its intent to file the proposed rule 

change, along with a brief description and text of 

the proposed rule change, at least five days prior 

to the date of filing of the proposed rule change, or 

such shorter time as designated by the Commission. 

The Commission has determined to waive the fiveday pre-filing notice requirement in this case. 

13For purposes only of waiving the operative date 

of this proposal, the Commission has considered 

the rule’s impact on efficiency, competition, and 

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

U.S. Dollar Index Bullish Fund.6 These 

securities, which are Trust Issued 

Receipts as described in NYSE Arca 

Equities Rule 8.200 Commentary .02, are 

traded on the NYSE Arca Marketplace 

pursuant to UTP. 

The Exchange proposes to delete the 

iShares FTSE/Xinhua China 25 Index 

Fund from the lists since these 

securities are eligible to trade in all 

three of the Exchange’s trading 

sessions.7 These securities, which are 

Investment Company Units described in 

NYSE Arca Equities Rule 5.2(j)(3), are 

traded on the NYSE Arca Marketplace 

pursuant to UTP. 

The Exchange proposes to change the 

trading sessions of iShares COMEX 

Gold Trust trading session to accurately 

reflect that they are traded in the core 

trading session only.8 The securities, 

which are Commodity-Based Trust 

Shares as described in NYSE Arca 

Equities Rule 8.201, are traded on the 

Exchange pursuant to UTP. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act,9 in general, and 

furthers the objectives of Section 

6(b)(5),10 in particular, in that it is 

designed to facilitate transactions in 

securities, to promote just and equitable 

principles of trade, to enhance 

competition, and to protect investors 

and the public interest. 

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 

The Exchange has neither solicited 

nor received written comments on the 

proposed rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change does not: 

(i) Significantly affect the protection 

of investors or the public interest; 

(ii) Impose any significant burden on 

competition; and 

(iii) Become operative for 30 days 

from the date on which it was filed, or 

such shorter time as the Commission 

may designate, if consistent with the 

protection of investors and the public 

interest, it has become effective 

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

Act 11 and Rule 19b–4(f)(6) 

thereunder.12

The Exchange has asked the 

Commission to waive the 30-day 

operative delay. The Commission 

believes that such waiver is consistent 

with the protection of investors and the 

public interest because the proposed 

rule change should provide 

transparency and more clarity with 

respect to the trading hours eligibility of 

certain derivative securities products 

and should promote consistency in the 

trading halts of derivative securities. 

The Commission notes that this filing 

does not change the trading hours of the 

Derivative Securities Products listed in 

NYSE Arca Equities Rule 7.34, but 

codifies trading hour sessions that have 

been established through other rule 

changes or through the use of the 

Exchange’s generic listing standards 

pursuant to Rule 19b–4(e) under the 

Act. For these reasons, the Commission 

designates the proposed rule change as 

operative immediately.13

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. 

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 e-mail to rulecomments@sec.gov. Please include File 

Number SR–NYSEArca–2007–32 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–NYSEArca–2007–32. 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 will also be 

available for inspection and copying at 

the principal office 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–2007–32 and should be 

submitted by or before May 1, 2007. 


cprice-sewell on PROD1PC66 with NOTICES
Federal Register / Vol. 72, No. 68 / Tuesday, April 10, 2007 / Notices 17975 

14 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(6). 

5See NYSE Arca Rule 1.1(u). 

6These price levels are: (1) At the last price and 

size entered by the Market Maker during the 

previous trading day, either including or excluding 

reserve size; (2) at a specified percentage from the 

best bid or offer; or (3) at the standard Q defined 

as $0.01 bid and 2 times the previous day’s close 

for the offer with specified display and reserve 

sizes. 

7 15 U.S.C. 78f(b). 

8 15 U.S.C. 78f(b)(5). 

9 15 U.S.C. 78s(b)(3)(A). 

10 17 CFR 240.19b–4(f)(6). 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.14

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–6675 Filed 4–9–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55578; File No. SR–

NYSEArca–2007–29] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Relating to NYSE Arca 

Rule 7.20 and 7.31 

April 4, 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 20, 

2007, NYSE Arca, Inc. (‘‘NYSE Arca’’ 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. 

The Exchange filed the proposed rule 

change pursuant to Section 19(b)(3)(A) 

of the Act 3 and Rule 19b–4(f)(6) 

thereunder, which renders it effective 

upon filing with the Commission.4 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 

NYSE Arca, through its wholly owned 

subsidiary, NYSE Arca Equities, Inc. 

(‘‘NYSE Arca Equities’’), is proposing to 

amend its rules governing NYSE Arca, 

LLC (‘‘NYSE Arca Marketplace’’), the 

equities trading facility of NYSE Arca 

Equities. With this filing, the Exchange 

proposes to clarify: (1) That Equity 

Trading Permit (‘‘ETP’’) Holders who 

are not registered Market Makers 5 are 

prohibited from entering Q Orders 

pursuant to NYSE Arca Equities Rule 

7.20(a), and (2) when Q Orders will 

automatically repost pursuant to NYSE 

Arca Equities Rule 7.31(l). The text of 

the proposed rule change is available at 

the Exchange, the Commission’s Public 

Reference Room, and http:// 

www.nyse.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 

NYSE Arca 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 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 NYSE Arca Equities Rule 

7.23(a)(1) (Obligations of Market 

Makers), Market Makers are required to 

maintain continuous, two-sided Q 

Orders in those securities in which the 

Market Maker is registered to trade. 

NYSE Arca Equities Rule 7.31(k)(1)(A) 

provides that a Market Maker may 

instruct the NYSE Arca Marketplace 

before 6:28 a.m. (Pacific Time) to enter 

a Q Order on its behalf at price levels 

set forth in Rule 7.31(k)(1)(A).6

Furthermore, Rule 7.31(k) provides that 

upon execution, the Q Order entered 

pursuant to the Market Maker’s 

instructions will automatically repost 

with the original size at $10 below the 

original bid or $10 above the original 

offer, but never below $0.01. 

The amendment to Rule 7.31 reflected 

in this rule filing is consistent with the 

intent of the rule and how the system 

currently operates. Specifically, such 

automatic reposting will not occur if the 

Market Maker initially enters the Q 

Order without a reserve size, or if the 

Market Maker initially enters the Q 

Order with a reserve size and such 

reserve size is exhausted. The proposed 

amendment clarifies that under such 

circumstances, a Market Maker will be 

responsible for reposting a new Q Order 

in the security in order to remain in 

compliance with its continuous Q Order 

obligation pursuant to Rule 7.23(a)(1). 

In addition, due to the broad 

definition of ‘‘Q Order’’ in Rule 

7.31(k)(1), ETP Holders, who are not 

registered Market Makers, have been 

improperly acting as Market Makers by 

entering Q Orders on the NYSE Arca 

Marketplace. In order to prevent this 

practice, the Corporation is clarifying 

the language in NYSE Arca Equities 

Rule 7.20(a) to prohibit specifically ETP 

Holders not registered as Market Makers 

from acting as Market Markers (i.e., 

submitting Q Orders) and make Rule 

7.20(a) more consistent with the 

proposed changes to Rule 7.31(k)(l). 

2. Statutory Basis 

The proposed rule change is 

consistent with Section 6(b) 7 of the Act, 

in general, and furthers the objectives of 

Section 6(b)(5) 8 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, 

and to remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system. 

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 

The Exchange has neither solicited 

nor received written comments on the 

proposed rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change does not: (i) Significantly affect 

the protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A) 9 and Rule 19b–4(f)(6) 

thereunder.10 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, 


cprice-sewell on PROD1PC66 with NOTICES