26664 Federal Register / Vol. 72, No. 90 / Thursday, May 10, 2007 / Notices 

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

12 15 U.S.C. 78f(b)(4). 

13 15 U.S.C. 78s(b)(3)(A)(ii). 

14 17 CFR 240.19b–4(f)(2). 

15For purposes of calculating the 60-day period 

within which the Commission may summarily 

abrogate the proposed rule change, the Commission 

considers the period to commence on May 2, 2007, 

the date on which the Exchange filed Amendment 

No. 1. 

16 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)(iii). 

4 17 CFR 240.19b–4(f)(3). 

fees applicable to members and (2) the 

monthly access fee applicable to ISE 

market makers. As a further incentive 

for market makers to quote in FX 

options, the Exchange proposes to waive 

one API for each class of market maker 

in FX options. For example, a firm that 

is both a primary market maker 

(‘‘PMM’’) and a competitive market 

maker (‘‘CMM’’) in FX options 

(‘‘FXPMM’’ and ‘‘FXCMM,’’

respectively) will receive a waiver of 

two APIs, one for quoting as a FXPMM 

and one for quoting as a FXCMM. 

Finally, FX options are an options 

product and, as such, are subject to 

certain other fees that are currently on 

the Schedule of Fees. These fees include 

the minimum PMM fee and the 

Inactivity fee applicable to both PMMs 

and CMMs. In order to promote trading 

in FX options, ISE proposes to exclude 

FXPMMs and FXCMMs from being 

subject to these fees. 

The Exchange believes that the 

proposed rule change will further the 

Exchange’s goal of introducing new 

products to the marketplace that are 

competitively priced. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the objectives of Section 6(b) of the 

Act 11 in general, and Section 6(b)(4) of 

the Act 12 in particular, in that it is 

designed to provide for the equitable 

allocation of reasonable dues, fees, and 

other charges among Exchange members 

and other persons using Exchange 

facilities. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange believes that the 

proposed rule change will not 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 not solicited, and 

does not intend to solicit, comments on 

the proposed rule change. The Exchange 

has not received any unsolicited written 

comments from its members or other 

interested parties. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing proposed rule change 

has become effective pursuant to 

Section 19(b)(3)(A)(ii) of the Act 13 and 

Rule 19b–4(f)(2) 14 thereunder, because 

it establishes or changes a due, fee, or 

other charge imposed by the Exchange. 

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.15

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–ISE–2007–25 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–ISE–2007–25. 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 office of ISE. 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–ISE–2007–25 and should be 

submitted on or before May 31, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.16

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–8912 Filed 5–9–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55703; File No. SR–NASD–

2007–026] 

Self-Regulatory Organizations; 

National Association of Securities 

Dealers, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Implement Technical 

Changes to the Customer, Industry 

and Mediation Codes 

May 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 April 13, 

2007 the National Association of 

Securities Dealers, Inc. (‘‘NASD ‘‘), 

through its wholly owned subsidiary, 

NASD Dispute Resolution, Inc. (‘‘NASD 

Dispute Resolution’’) 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 NASD Dispute 

Resolution. NASD has designated the 

proposed rule change as concerned 

solely with the administration of the 

self-regulatory organization under 

Section 19(b)(3)(A)(iii) of the Act 3 and 

Rule 19b–4(f)(3) thereunder,4 which 

renders the proposal effective upon 

receipt of this filing by the Commission. 

The Commission is publishing this 

notice to solicit comments on the 

proposed rule change from interested 

persons. 


pwalker on PROD1PC71 with NOTICES
Federal Register / Vol. 72, No. 90 / Thursday, May 10, 2007 / Notices 26665 

5 In 2004, NASD filed separately with the 

Commission the Industry and Mediation Codes. See 

Securities Exchange Act Release No. 51857 (June 

15, 2005), 70 FR 36430 (June 23, 2005) (File No. 

SR–NASD–2004–011) (notice); and Securities 

Exchange Act Release No. 51855 (June 15, 2005), 70 

FR 36440 (June 23, 2005) (File No. SR–NASD–

2004–013) (notice). 

6See Securities Exchange Act Release No. 52705 

(October 31, 2005), 70 FR 67525 (November 7, 2005) 

(File No. SR–NASD–2004–013) (approval order). 

7See Securities Exchange Act Release No. 55158 

(Jan. 24, 2007), 72 FR 4574 (Jan. 31, 2007) (File Nos. 

SR–NASD–2003–158 and SR–NASD–2004–011) 

(approval orders). 

8The changes were announced in Notice to 

Members 07–07 (Feb. 2007). 

9See Securities Exchange Act Release No. 51825 

(June 13, 2005), 70 FR 35482 (June 20, 2005) (File 

No. SR–NASD–2005–070) (approval order). 

10See Securities Exchange Act Release No. 54798 

(November 21, 2006), 71 FR 69156 (November 29, 

2006) (File No. SR–NASD–2006–104) (approval 

order). 

11See Securities Exchange Act Release No. 50714 

(November 22, 2004), 69 FR 69971 (December 1, 

2004) (File No. SR–NASD–2003–101) (approval 

order). 

12 15 U.S.C. 78o–3(b)(6). 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

NASD Dispute Resolution is 

proposing to amend the NASD Codes of 

Arbitration Procedure for Customer 

Disputes (‘‘Customer Code’’) and for 

Industry Disputes (‘‘Industry Code’’), 

and to amend the NASD Code 

Mediation Procedure (‘‘Mediation 

Code’’) (collectively, the ‘‘Codes’’) to 

delete rule language that was rescinded 

prior to the approval of the Codes, to 

change a reference that was amended by 

a separate NASD proposal, and to insert 

rule language that was approved by the 

Commission prior to its approval of the 

Customer and Industry Codes, but was 

inadvertently omitted from the 

Customer and Industry Codes. Proposed 

new language is in italics; proposed 

deletions are in brackets. The text of the 

proposed rule change is available at 

NASD, on NASD’s Web site (http:// 

www.nasd.com) 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, 

NASD 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. NASD 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 

Recently, NASD reorganized its 

dispute resolution rules (Rules 10000 et 

seq.) into three separate procedural 

codes: the Customer Code; the Industry 

Code; and the Mediation Code.5 The 

Customer, Industry and Mediation 

Codes replaced the NASD Code of 

Arbitration Procedure (‘‘old Code’’) in 

its entirety. 

The Commission approved the 

Mediation Code on October 31, 2005.6

The Commission approved the 

Customer Code and Industry Code 

(collectively, ‘‘new Codes’’) on January 

24, 2007,7 and the new Codes became 

effective on April 16, 2007.8

NASD is proposing several technical, 

nonsubstantive amendments to the 

Mediation Code and the new Arbitration 

Codes. With these amendments, NASD 

is proposing to delete provisions that 

were rescinded prior to the Codes’

approval, to change a reference that was 

amended by a separate NASD proposal, 

and to add a provision that was 

approved by the Commission prior to its 

approval of the new Mediation and 

Arbitration Codes, but was 

inadvertently omitted from the new 

Codes. 

First, NASD proposes to delete 

Interpretive Material (IM) 12000(f) and 

IM–13000(f) from the Arbitration Codes 

because these paragraphs were 

rescinded by SR–NASD–2005–070.9

These paragraphs state that failure by a 

member or person associated with a 

member to waive the California Rules of 

Court, Division VI of the Appendix, 

entitled, ‘‘Ethics Standards for Neutral 

Arbitrators in Contractual Arbitration’’

in certain circumstances may be deemed 

conduct inconsistent with just and 

equitable principle of trade, and a 

violation of Rule 2110. These provisions 

were included in IM–12000 and IM–

13000 of the new Codes inadvertently, 

and should be removed. 

Second, NASD proposes to amend the 

numerical reference in Rule 12102(a) of 

the Customer Code, Rule 13102(a) of the 

Industry Code and Rule 14102(a) of the 

Mediation Code, which identify the part 

of the Plan of Allocation and Delegation 

of Functions by NASD to Subsidiaries 

(‘‘Delegation Plan’’) that applies to 

NASD Dispute Resolution. In a proposal 

filed on September 5, 2006 to reflect the 

complete separation of NASD from the 

Nasdaq Stock Market, NASD amended 

the number of the section of the 

Delegation Plan that applies to NASD 

Dispute Resolution.10 As a result of this 

change, NASD is proposing to amend 

Rules 12102(a), 13102(a), and 14102(a) 

to change the reference to the Delegation 

Plan. 

Finally, NASD proposes to insert a 

provision in the proposed amendments 

to Rules 12206(c) and 13206(c) of the 

Customer Code and Industry Code, 

respectively, stating that the six-year 

time limit on the submission of claims 

shall not apply to any claim that is 

directed to arbitration by a court of 

competent jurisdiction upon request of 

a member or associated person. This 

provision was approved by the 

Commission prior to its approval of the 

new Arbitration Codes, but was 

inadvertently omitted from them.11

2. Statutory Basis 

NASD believes that the proposed rule 

change is consistent with the provisions 

of Section 15A(b)(6) of the Act,12 which 

provides, among other things, that 

NASD’s rules must be designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, and, in 

general, to protect investors and the 

public interest. NASD believes that the 

proposed rule change is consistent with 

the provision of the Act noted above 

because it will assist in the 

administration of arbitrations by 

clarifying the Customer, Industry, and 

Mediation Codes, which will make them 

easier to understand and apply. 

(B) Self-Regulatory Organization’s 

Statement on Burden on Competition 

NASD does not believe that the 

proposed rule change will result in 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 

Written comments were neither 

solicited nor received by NASD. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to Section 

19(b)(3)(A)(iii) of the Act and Rule 19b–

4(f)(3) thereunder because it is 

concerned solely with the 

administration of the self-regulatory 


pwalker on PROD1PC71 with NOTICES
26666 Federal Register / Vol. 72, No. 90 / Thursday, May 10, 2007 / Notices 

13 17 CFR 240.19b–4(f)(3). 

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). 

5NYSE Arca Equities Rule 5.1(b)(15) defines an 

ICU 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. 

6SPDR is a registered trademark of The 

McGraw-Hill Companies, Inc. 

7S&P is a registered trademark of The McGrawHill Companies, Inc. 

8NYSE 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, ICUs, 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). 

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

Number SR–NASD–2007–026 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–NASD–2007–026. 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 at 

the principal office of NASD. 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 the File 

Number SR–NASD–2007–026 and 

should be submitted on or before May 

31, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.14

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–8914 Filed 5–9–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55707; File No. SR–

NYSEArca–2007–41] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Relating to NYSE Arca 

Marketplace Trading Sessions 

May 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 April 20, 

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. 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 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 lists 

the following investment company units 

(ICUs) 5 of funds that are trading on 

NYSE Arca, L.L.C. (‘‘NYSE Arca 

Marketplace’’), the equities trading 

facility of NYSE Arca Equities, pursuant 

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

(1) SPDR 6 S&P 7 International Small 

Cap ETF; and (2) SPDR S&P World 

ex-US ETF. The text of the proposed 

rule change is available on the 

Exchange’s Web site (http:// 

www.nyse.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.8

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 

Web site (http://www.nysearca.com) a 

list that identifies all securities traded 


pwalker on PROD1PC71 with NOTICES