18710 Federal Register / Vol. 72, No. 71 / Friday, April 13, 2007 / Notices 

22For the purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

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

2315 U.S.C. 78s(b)(3)(C). For purposes of 

calculating the 60-day period within which the 

Commission may summarily abrogate the proposal, 

the Commission considers the period to commence 

on April 5, 2007, the date on which the Exchange 

submitted Amendment No. 1. 

2417 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 52468 

(Sept. 19, 2005), 70 FR 56201 (Sept. 26, 2005). 

4Amendment No. 1 clarified that only the 

arbitrator(s) may issue subpoenas and delineated 

the manner in which a party may request the 

issuance of a subpoena. Amendment No. 2 

established a time frame for the parties to make and 

respond to objections to the requested subpoena 

and clarified that the arbitrator(s) may not rule on 

such a request until this time period has elapsed. 

Amendment No. 3 made technical changes to the 

rule and clarified that the arbitrator(s) must receive 

copies of any objections to the issuance of a 

subpoena. Amendment No. 4 clarified that a party 

requesting a subpoena may not serve the request or 

the draft subpoena on a non-party. 

be operative upon filing with the 

Commission.22

At any time within 60 days of the 

filing of such 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.23

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–2007–29 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–NYSE–2007–29. 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 the filing also will be 

available for inspection and copying at 

the principal office of NYSE. 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–2007–29 and should 

be submitted on or before May 4, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.24

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–6962 Filed 4–12–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55594; File No. SR–NYSE–

2005–48] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing of Amendments No. 1, 2, 3, and 

4 Thereto to Proposed Rule Change to 

Amend Rule 619 Pertaining to 

Subpoenas for the Production of 

Documents and Appearances of 

Witnesses 

April 6, 2007. 

On July 13, 2005, pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Act’’) 1 and Rule 19b–4 

thereunder,2 the New York Stock 

Exchange LLC (‘‘NYSE’’ or ‘‘Exchange’’) 

filed with the Securities and Exchange 

Commission (‘‘SEC’’ or ‘‘Commission’’) 

a proposed rule change to amend NYSE 

Rule 619, pertaining to subpoenas for 

the production of documents and 

appearance of witnesses. The proposed 

rule change was published for comment 

in the Federal Register on September 

26, 2005,3 and the Commission received 

no comments on the proposal. On April 

18, 2006, November 2, 2006, December 

22, 2006, and February 8, 2007, the 

NYSE filed Amendments No. 1, 2, 3, 

and 4, respectively, to revise the rule 

change as described in Items I, II, and 

III below, which Items have been 

prepared by the NYSE.4 The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change, as amended, from interested 

persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

NYSE is proposing to revise Rule 619, 

which pertains to subpoenas for the 

production of documents and the 

appearance of witnesses. Below is the 

text of the proposed rule change. 

Proposed new language is italicized and 

proposed deletions are in brackets. 

* * * * * 

(a) to (e) No change. 

(f) Subpoenas. 

(1) The arbitrator(s) [and any counsel 

of record to the proceedings] may issue 

subpoenas for the production of 

documents or the appearance of 

witnesses [shall have the power of the 

subpoena process as provided by law. 

All parties shall be given a copy of the 

subpoena upon its issuance. The parties 

shall produce witnesses and present 

proofs to the fullest extent possible 

without resort to the subpoena process.] 

The party who requests a subpoena 

must make a written request asking the 

arbitrator(s) to issue a subpoena. The 

request, along with the requested draft 

subpoena must be served directly on 

each other party in a manner that is 

reasonably expected to cause the 

request and the requested subpoena to 

be delivered to all parties on the same 

day. The requesting party may not serve 

the request or the requested draft 

subpoena on a non-party. The request 

and the requested subpoena must also 

be filed with the Director of Arbitration, 

with additional copies for each 

arbitrator, at the same time and in the 

same manner in which they are served 

on the parties. The parties shall produce 

witnesses and present proof at the 

hearing whenever possible without 

using subpoenas. 

(2) In the event a party receiving such 

a request objects to the scope or 

propriety of the subpoena, that party 

shall, within 10 days of service of the 

request, file with the Director of 

Arbitration, with copies to all other 

parties, written objections, including 

additional copies for each arbitrator. 

The party seeking the subpoena may 

respond thereto within five days of 

receipt of the objection. The arbitrator(s) 

appointed shall rule promptly on the 


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Federal Register / Vol. 72, No. 71 / Friday, April 13, 2007 / Notices 18711 

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

issuance and scope of the subpoena 

after the time period for objections and 

replies thereto has elapsed. 

(3) If the arbitrator(s) issue a 

subpoena, the party that requested the 

subpoena must serve the subpoena at 

the same time and in the same manner 

on all parties, and, if applicable, on any 

non-party receiving the subpoena. 

(4) Any party that receives documents 

in response to a subpoena served upon 

a non-party shall provide notice to all 

other parties within five days of receipt 

of the documents. Thereafter, any party 

may request copies of such documents 

and, if such a request is made, the 

documents must be provided within 10 

days following receipt of the request. 

The party requesting the documents 

shall be responsible for the reasonable 

costs associated with the production of 

the copies, unless the panel determines 

otherwise. 

(g) No change. 

* * * * * 

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 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 

NYSE 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 

Proposal 

In the initial rule filing, the Exchange 

proposed to revise NYSE Rule 619 to 

provide for a 10-day notice period 

requirement before a party issues a 

subpoena to a non-party for pre-hearing 

discovery. Under the proposed rule 

change only the arbitrator(s) may issue 

subpoenas for the production of 

documents and the appearance of 

witnesses. In addition, the arbitrator(s), 

and not the courts, would rule on 

discovery disputes concerning the 

issuance of subpoenas. The party who 

requests a subpoena would make a 

written request asking the arbitrator(s) 

to issue a subpoena and would send a 

copy of the request and the requested 

draft subpoena to the Director of 

Arbitration, each arbitrator, and all 

parties to the arbitration in a manner 

reasonably expected to result in delivery 

to everyone on the same day. The 

requesting party may not serve the 

request or the requested draft subpoena 

on any non-party. 

If a party has an objection to the 

propriety or scope of the subpoena, that 

party would be required to file 

objections in writing with the Director 

of Arbitration and send copies to all 

other parties, including each arbitrator, 

within 10 days of service of the request 

and draft subpoena. The party 

requesting the subpoena could file a 

reply to the objection within five days 

of receipt of the objection. The 

arbitrator(s) would determine the 

propriety and scope of the requested 

subpoena after the time period for filing 

objections or replies had elapsed. If a 

subpoena is issued by the arbitrator(s), 

the party that requested the subpoena 

would be required to serve the subpoena 

at the same time and in the same 

manner on all parties, and, if applicable, 

on any non-party receiving the 

subpoena. 

Additionally, the proposed rule 

change provides that any party that 

receives documents in response to a 

subpoena served upon a non-party must 

provide notice to all other parties within 

five days of receipt of the documents. 

Thereafter, any party may request copies 

of those documents and, if such a 

request is made, the documents must be 

provided within 10 days following 

receipt of the request. The party 

requesting the documents is responsible 

for the reasonable costs associated with 

the production of the copies, unless the 

panel determines otherwise. 

2. Statutory Basis 

NYSE believes that the proposed rule 

change is consistent with Section 

6(b)(5) 5 of the Act in that the rule 

change promotes just and equitable 

principles of trade by ensuring that 

members, member organizations and the 

public have a fair and impartial forum 

for the resolution of their disputes. 

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 Commission published the 

proposed amendments to Rule 619 (SR–

NYSE–2005–48) in the Federal Register 

on September 26, 2005. The 

Commission received no comments in 

response to the proposal. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within 35 days of the date of 

publication of this notice in the Federal 

Register or within such longer period (i) 

as the Commission may designate up to 

90 days of such date if it finds such 

longer period to be appropriate and 

publishes its reasons for so finding or 

(ii) as to which the self-regulatory 

organization consents, the Commission 

will: 

(A) By order approve the proposed 

rule change, or 

(B) Institute proceedings to determine 

whether the proposed rule change 

should be disapproved. 

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–NYSE–2006–48 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–NYSE–2005–48. 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 


pwalker on PROD1PC71 with NOTICES
18712 Federal Register / Vol. 72, No. 71 / Friday, April 13, 2007 / Notices 

6 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Rule 19b–4(e) provides that the listing and 

trading of a new derivative securities product by a 

self-regulatory organization (‘‘SRO’’) shall not be 

deemed a proposed rule change if the Commission 

has approved the SRO’s trading rules, procedures, 

and listing standards for the product class that 

would include the new derivatives securities 

product, and the SRO has a surveillance program 

for the product class. See 17 CFR 240.19b–4(e)(1). 

4See 17 CFR 240.19b–4(e)(2)(ii). 

5The Exchange states that the holder of an IndexLinked Security may or may not be fully exposed 

to the appreciation and/or depreciation of the 

underlying component assets. For example, an 

Index-Linked Security may be subject to a ‘‘cap’’ on 

the maximum principal amount to be repaid to 

holders or a ‘‘floor’’ on the minimum principal 

amount to be repaid to holders at maturity. 

6Some Index-Linked Securities may provide for 

‘‘contingent’’ protection of the principal amount, 

whereby the principal protection may disappear if 

the Underlying Index at any point in time during 

the life of such security reaches a certain 

predetermined level. 

the Commission’s Public Reference 

Room. Copies of such filing also will be 

available for inspection and copying at 

the principal office of the NYSE. 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–2005–48 and should be 

submitted on or before May 4, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.6

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–7055 Filed 4–12–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55600; File No. SR–NYSE–

2007–27] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing of Proposed Rule Change and 

Amendment Nos. 1 and 2 Thereto To 

Adopt Generic Listing Standards for 

Index-Linked Securities 

April 9, 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 New York Stock Exchange 

LLC (‘‘NYSE’’ or ‘‘Exchange’’) 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 substantially prepared by the 

Exchange. On April 4, 2007, the 

Exchange filed Amendment No. 1 to the 

proposed rule change. On April 5, 2007, 

the Exchange filed Amendment No. 2 to 

the proposed rule change. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change, as amended, from interested 

persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to adopt 

generic listing standards for equity 

index-linked securities (‘‘Equity IndexLinked Securities’’), commodity-linked 

securities (‘‘Commodity-Linked 

Securities’’), and currency-linked 

securities (‘‘Currency-Linked 

Securities’’ and, together with Equity 

Index-Linked Securities and 

Commodity-Linked Securities, ‘‘IndexLinked Securities’’). The text of the 

proposed rule change is available at 

NYSE, the Commission’s Public 

Reference Room, and 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 

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 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 

The Exchange proposes to add new 

Section 703.22 to its Listed Company 

Manual (the ‘‘Manual’’) to provide 

generic listing standards to permit the 

listing and trading of Index-Linked 

Securities pursuant to Rule 19b–4(e) 3

under the Act. The Exchange represents 

that any securities it lists and/or trades 

pursuant to proposed Section 703.22 of 

the Manual will satisfy the standards set 

forth therein. The Exchange states that 

within five business days after 

commencement of trading of an IndexLinked Security pursuant to proposed 

Section 703.22 of the Manual, the 

Exchange will file a Form 19b–4(e).4

Index-Linked Securities 

Index-Linked Securities are designed 

for investors who desire to participate in 

a specific market segment by providing 

exposure to one or more identifiable 

underlying securities, commodities, 

currencies, derivative instruments, or 

market indexes of the foregoing (the 

‘‘Underlying Index’’ or ‘‘Underlying 

Indexes’’).5 Index-Linked Securities are 

the non-convertible debt of an issuer 

that have a term of at least one year, but 

not greater than thirty years, and are 

tied to the performance of the 

Underlying Index. Index-Linked 

Securities may or may not make interest 

payments based on dividends or other 

cash distributions paid on the securities 

comprising the Underlying Index or 

Indexes to the holder during their term. 

Despite the fact that Index-Linked 

Securities are linked to an Underlying 

Index, each will trade as a single, 

exchange-listed security. 

The Exchange represents that the 

proposed generic listing standards will 

not be applicable to Index-Linked 

Securities with respect to which the 

payment at maturity is based on a 

multiple of the negative performance of 

an Underlying Index or Indexes. An 

Index-Linked Security may or may not 

provide ‘‘principal protection,’’ i.e., a 

minimum guaranteed amount to be 

repaid.6 The Exchange believes that the 

flexibility to list a variety of IndexLinked Securities will offer investors 

the opportunity to more precisely focus 

their specific investment strategies. 

Index-Linked Securities do not give 

the holder any right to receive a 

portfolio component, dividend 

payments, or any other ownership right 

or interest in the portfolio or underlying 

components comprising the Underlying 

Index. Pursuant to proposed Section 

703.22 of the Manual, the current or 

composite value of the Underlying 

Index will be widely disseminated at 

least every 15 seconds during the 

trading day. 

Proposed Listing Criteria for IndexLinked Securities 

The Exchange will apply the 

following requirements to all issuers of 

Index-Linked Securities: 

• If the issuer is a NYSE-listed 

company, the entity must be a company 

in good standing (i.e., meets NYSE’s 

applicable continued listing criteria); if 

the issuer is an affiliate of a NYSE-listed 

company, the NYSE-listed company 

must be a company in good standing; if 

not listed, the issuer must meet the size 

and earnings requirements of Sections 

102.01–102.03 or Sections 103.01–

103.05 of the Manual. Sovereign issuers 


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