2916 Federal Register / Vol. 72, No. 14 / Tuesday, January 23, 2007 / Notices 

9 Initial eligibility criteria for each type of Eligible 

Clearing Fund Security will be announced to 

members in an Important Notice prior to the 

effective date of these proposed rule changes. Any 

future changes to the eligibility criteria will also be 

announced to members in Important Notices in 

advance of such changes becoming effective. 

10See supra note 6. 

11No member may post as collateral Eligible 

Clearing Fund Agency Securities for which it is the 

issuer. However, a member may pledge Eligible 

Clearing Fund Mortgage-Backed Securities for 

which it is the issuer subject to a premium haircut. 

That haircut shall be fourteen percent as an initial 

matter, and if the member also exceeds the twentyfive percent concentration limit, the haircut shall be 

twenty-one percent. 

12NSCC has found that in practice letters of credit 

are not as liquid as cash and securities, and 

therefore potentially pose more risk to NSCC and 

its members when accepted by NSCC as Clearing 

Fund collateral. NSCC will, however, reserve the 

right to require letters of credit from members in 

those instances where a particular member has been 

found, by NSCC in its discretion, to present legal 

risk. 

13 15 U.S.C. 78s(b). 

14 15 U.S.C. 78q–1(b)(3)(F). 

15 In approving the proposed rule change, the 

Commission considered the proposal’s impact on 

efficiency, competition, and capital formation. 15 

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

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

17 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Amendment No. 2 clarified that Amendment 

No. 1 replaced the original filing in its entirety and 

Eligible Clearing Fund Securities. These 

securities will be unmatured bonds 

which are either an Eligible Clearing 

Fund Agency Security, Eligible Clearing 

Fund Mortgage-Backed Security, or 

Eligible Clearing Fund Treasury 

Security.9 An Eligible Clearing Fund 

Agency Security will be defined as a 

direct obligation of those U.S. agencies 

or government sponsored enterprises as 

NSCC may designate from time to time 

that satisfies such criteria set forth in 

notices issued by NSCC from time to 

time. An Eligible Clearing Fund 

Mortgage-Backed Security will be 

defined as a mortgage-backed pass 

through obligation issued by those U.S. 

agencies or government sponsored 

enterprises as NSCC may designate from 

time to time that satisfies such criteria 

set forth in notices issued by NSCC from 

time to time. An Eligible Clearing Fund 

Treasury Security will be defined as a 

direct obligation of the U.S. government 

that satisfies the criteria set forth in 

notices issued by NSCC from time to 

time. 

(3) Security Concentration Provisions 

NSCC is also establishing security 

concentration provisions for Clearing 

Fund deposits. As is currently required, 

each member must contribute a 

minimum of $10,000 with the first forty 

percent but no less than $10,000 of a 

member’s Required Deposit being in 

cash.10 The remainder of a member’s 

deposit may be secured by the pledge of 

Eligible Clearing Fund Securities in any 

combination of Eligible Clearing Fund 

Treasury Securities, Eligible Clearing 

Fund Agency Securities, and/or Eligible 

Clearing Fund Mortgage-Backed 

Securities, subject to the following two 

limitations. First, any deposits of 

Eligible Clearing Fund Agency 

Securities or Eligible Clearing Fund 

Mortgage-Backed Securities in excess of 

twenty-five percent of the member’s 

Required Deposit will be subject to an 

additional haircut equal to twice the 

percentage noted in the haircut 

schedule. Second, no more than twenty 

percent of a member’s Required Deposit 

secured by pledged Eligible Clearing 

Fund Agency Securities may be of a 

single issuer.11

(4) Letters of Credit and Other Adequate 

Assurances 

The provisions in NSCC’s Rules that 

pertain to Letter of Credit Issuers are 

being modified to reflect that letters of 

credit are no longer a generally accepted 

form of Clearing Fund collateral.12

Effective April 1, 2007 (the regular 

expiration date of letters of credit), 

members that have letters of credit 

posted as collateral (other than 

members, if any, that have been 

required to post letters of credit for legal 

risk) will be required to replace the 

portion of the Clearing Fund 

collateralized by letters of credit with 

either cash or Eligible Clearing Fund 

Securities. 

(5) Implementation Timeframes 

The foregoing rule changes will 

become effective thirty days after an 

Important Notice is issued to members 

informing them that NSCC’s systems are 

ready to accommodate such changes. 

The corresponding changes to NSCC’s 

rules will be made at that time. On April 

1, 2007, changes pertaining to letters of 

credit will be made to NSCC’s rules. 

III. Discussion 

Section 19(b) of the Act directs the 

Commission to approve a proposed rule 

change of a self-regulatory organization 

if it finds that such proposed rule 

change is consistent with the 

requirements of the Act and the rules 

and regulations thereunder applicable to 

such organization.13 Section 

17A(b)(3)(F) of the Act requires that the 

rules of a clearing agency be designed to 

assure the safeguarding of securities and 

funds which are in the custody or 

control of the clearing agency or for 

which it is responsible.14 The 

Commission finds that NSCC’s rule 

change is consistent with this 

requirement because by revising its 

rules governing the acceptable forms of 

Clearing Fund collateral deposits to 

increase the liquidity of its Clearing 

Fund and to minimize risk to NSCC and 

its members, the proposed rule change 

should better enable NSCC to assure the 

safeguarding of securities and funds in 

its custody or control or for which it is 

responsible.15

IV. Conclusion 

On the basis of the foregoing, the 

Commission finds that the proposed 

rule change is consistent with the 

requirements of the Act and in 

particular Section 17A of the Act and 

the rules and regulations thereunder. 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,16 that the 

proposed rule change (File No. SR–

NSCC–2006–11) be and hereby is 

approved. 

For the Commission by the Division of 

Market Regulation, pursuant to delegated 

authority.17

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–865 Filed 1–22–07; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55102; File No. SR–

NYSEArca–2006–63] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and Order 

Granting Accelerated Approval of 

Proposed Rule Change and 

Amendment Nos. 1 and 2 Thereto to 

Trade iShares Lehman Bond Funds 

Pursuant to Unlisted Trading 

Privileges 

January 12, 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 

September 20, 2006, the NYSE Arca, 

Inc. (the ‘‘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 submitted 

Amendment No. 1 to the proposed rule 

change on January 8, 2007, which 

replaces the original filing in its 

entirety. On January 12, 2007, the 

Exchange submitted Amendment No. 2 

to the proposed rule change.3 The 

mstockstill on PROD1PC70 with NOTICES

Federal Register / Vol. 72, No. 14 / Tuesday, January 23, 2007 / Notices 2917 

revised the statutory basis section of the proposed 

rule change. 

4NYSE Arca Equities Rule 5.2(j)(3)(A)(i)(a) allows 

the listing and trading of ICUs issued by a registered 

investment company that holds securities 

comprising, or otherwise based on or representing 

an interest in, an index or portfolio or securities. 

5See Securities Exchange Act Release No. 54916 

(December 12, 2006), 71 FR 76008 (December 19, 

2006) (SR–NYSE–2006–70) (the ‘‘NYSE Proposal’’). 

6 Deposit Securities are the in-kind deposit of a 

designated portfolio of securities, which constitute 

a substantial replication, or a portfolio sampling 

representation, of the securities in the relevant 

Fund’s Underlying Index. 

7The Fund Deposit represents the minimum 

initial and subsequent investment amount for a 

Creation Unit. 

8Balancing Amount, together with the Deposit 

Securities, constitute the ‘‘Fund Deposit.’’

9Shares of the Funds will be issued on a 

continuous offering basis in groups of 50,000 to 

100,000 iShares (as specified for each Fund), or 

multiples thereof. These ‘‘groups’’ of shares are 

called ‘‘Creation Units.’’

Commission is publishing this notice to 

solicit comment on the proposal, as 

amended, from interested persons and 

to approve the proposal on an 

accelerated basis. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange, through NYSE Arca 

Equities, has proposed to trade shares 

(‘‘Shares’’) of the following Index Funds 

(‘‘Funds’’) pursuant to unlisted trading 

privileges (‘‘UTP’’) based on NYSE Arca 

Equities Rule 5.2(j)(3): (1) iShares

Lehman Short Treasury Bond Fund; (2) 

iShares Lehman 3–7 Year Treasury 

Bond Fund; (3) iShares Lehman 10–20 

Year Treasury Bond Fund; (4) iShares 

Lehman 1–3 Year Credit Bond Fund; (5) 

iShares Lehman Intermediate Credit 

Bond Fund; (6) iShares Lehman Credit 

Bond Fund; (7) iShares Lehman 

Intermediate Government/Credit Bond 

Fund; and (8) iShares Lehman 

Government/Credit Bond Fund. The text 

of the proposed rule change is available 

at the Exchange, the Commission’s 

Public Reference Room, and http:// 

www.nysearca.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 III 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 

Under NYSE Arca Equities Rule 

5.2(j)(3), the Exchange may propose to 

list or trade pursuant to UTP 

‘‘Investment Company Units’’ (‘‘ICUs’’). 

The Exchange proposes to trade 

pursuant to UTP the Shares of the 

Funds under NYSE Arca Equities Rule 

5.2(j)(3).4 The Commission has 

approved a proposed rule change by the 

New York Stock Exchange LLC (the 

‘‘NYSE’’) to list and trade the Shares of 

the Funds.5

The Funds will be based on the 

following indexes, respectively: (1) 

Lehman Brothers Short U.S. Treasury 

Index; (2) Lehman Brothers 3–7 Year 

U.S. Treasury Index; (3) Lehman 

Brothers 10–20 Year U.S. Treasury 

Index; (4) Lehman Brothers 1–3 Year 

U.S. Credit Index; (5) Lehman Brothers 

Intermediate U.S. Credit Index; (6) 

Lehman Brothers U.S. Credit Index; (7) 

Lehman Brothers Intermediate U.S. 

Government/Credit Index; and (8) 

Lehman Brothers U.S. Government/ 

Credit Index. 

The indexes are referred to herein 

collectively as ‘‘Indexes’’ or 

‘‘Underlying Indexes,’’ which are 

described in detail in the NYSE 

Proposal. Each Fund is an ‘‘index fund’’

that seeks investment results that 

correspond generally to the price and 

yield performance, before fees and 

expenses, of its Underlying Index 

developed by Lehman. 

Availability of Information Regarding 

iShares and the Underlying Index 

Quotations for and last sale 

information regarding the Shares are 

disseminated through the Consolidated 

Tape System (‘‘CTS’’). The NYSE 

Proposal states that, on each business 

day the list of names and amount of 

each security constituting the current 

Deposit Securities 6 of the Fund 

Deposit 7 and the Balancing Amount 8

effective as of the previous business day 

will be made available. An amount per 

iShare representing the sum of the 

estimated Balancing Amount effective 

through and including the previous 

business day, plus the current value of 

the Deposit Securities in U.S. dollars, on 

a per iShare basis (the ‘‘Intra-day 

Optimized Portfolio Value’’ or ‘‘IOPV’’) 

will be calculated by an independent 

third party (the ‘‘Value Calculator’’), 

such as Bloomberg L.P., every 15 

seconds during the Exchange’s regular 

trading hours and disseminated every 

15 seconds on the Consolidated Tape. 

Because NSCC does not disseminate the 

new basket amount to market 

participants until approximately 6 p.m. 

to 7 p.m. ET, an updated IOPV is not 

possible to calculate during the 

Exchange’s late trading session (4:15 

p.m. to 8 p.m. ET). 

The NYSE Proposal indicates that the 

NYSE intends to disseminate a variety 

of data with respect to each Fund on a 

daily basis by means of the 

Consolidated Tape Association and CQ 

High Speed Lines; information with 

respect to recent NAV, shares 

outstanding, estimated cash amount and 

total cash amount per Creation Unit 9

will be made available each trading day. 

The Underlying Indexes are 

calculated once each trading day, and 

are available from major market data 

vendors. The NAV for each Fund will be 

calculated and disseminated daily in a 

number of places, including 

iShares.com and on the Consolidated 

Tape. In the NYSE Proposal, the NYSE 

stated that it will receive a 

representation from the Advisor to the 

Funds that the NAV will be calculated 

and made available to all market 

participants at the same time. 

In addition, the Web site for the 

iShare Trust (‘‘Trust’’), which will be 

publicly accessible at no charge, will 

contain the following information, on a 

per iShare basis, for each Fund: (a) The 

prior business day’s NAV and the midpoint of the bid-ask price and a 

calculation of the premium or discount 

of such price against such NAV; and (b) 

data in chart format displaying the 

frequency distribution of discounts and 

premiums of the Bid/Ask Price against 

the NAV, within appropriate ranges, for 

each of the four previous calendar 

quarters. 

UTP Trading Criteria 

The Exchange represents that it will 

cease trading the Shares of a Fund if: (a) 

The listing market stops trading the 

Shares because of a regulatory halt 

similar to a halt based on NYSE Arca 

Equities Rule 7.12; or (b) the listing 

market delists the Shares. Additionally, 

the Exchange may cease trading the 

Shares if such other event shall occur or 

condition exists which in the opinion of 

the Exchange makes further dealings on 

the Exchange inadvisable. UTP trading 

in the Shares is also governed by the 

trading halts provisions of NYSE Arca 

Equities Rule 7.34 relating to temporary 

interruptions in the calculation or wide 

dissemination of the Intraday Indicative 

Value (‘‘IOPV’’) or the value of the 

underlying index. 

mstockstill on PROD1PC70 with NOTICES

2918 Federal Register / Vol. 72, No. 14 / Tuesday, January 23, 2007 / Notices 

10The Exchange relies on the listing market to 

monitor dissemination of the IOPV during the 

Exchange’s core trading session (9:30 a.m. to 4:15 

p.m. ET). Currently the official index sponsors for 

the Funds’ indexes do not calculate updated index 

values during the Exchange’s late trading session; 

however, if the index sponsors did so in the future, 

the Exchange will not trade this product unless 

such official index value is widely disseminated. 

11See NYSE Arca Equities Rule 7.12. 

12NYSE Arca Equities Rule 9.2(a) (‘‘Diligence as 

to Accounts’’) provides that ETP Holders, before 

recommending a transaction, must have reasonable 

grounds to believe that the recommendation is 

suitable for the customer based on any facts 

disclosed by the customer as to his other security 

holdings and as to his financial situation and needs. 

Further, with a limited exception, prior to the 

execution of a transaction recommended to a noninstitutional customer, ETP Holders shall make 

reasonable efforts to obtain information concerning 

the customer’s financial status, tax status, 

investment objectives, and any other information 

that they believe would be useful to make a 

recommendation. See Securities Exchange Act 

Release No. 54045 (June 26, 2006), 71 FR 37971 

(July 3, 2006) (SR–PCX–2005–115). 

13See In the Matter of iShares, Inc., Investment 

Company Act Release No. 25623 (June 25, 2002), 

which permits dealers to sell Shares in the 

secondary market unaccompanied by a statutory 

prospectus when prospectus delivery is not 

required by the Securities Act of 1933. Any product 

description used in reliance on the Section 24(d) 

exemptive order will comply with all 

representations and conditions set forth in the 

order. 

14 15 U.S.C. 80a–24(d). 

15See In the Matter of iShares, Inc., Investment 

Company Act Release No. 25623 (June 25, 2002). 

16 15 U.S.C. 78f(b). 

17 15 U.S.C. 78f(b)(5). 

18 17 CFR 240.12f–5. 

Trading Rules 

The Exchange 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. Shares will trade on 

the NYSE Arca Marketplace from 4 a.m. 

until 8 p.m. ET, even if the IOPV is not 

disseminated from 4:15 p.m. to 8 p.m. 

ET.10 The Exchange has appropriate 

rules to facilitate transactions in the 

Shares during all trading sessions. The 

minimum trading increment for Shares 

on the Exchange will be $0.01. 

With respect to trading halts, the 

Exchange may consider all relevant 

factors in exercising its discretion to 

halt or suspend trading in the Shares. 

Trading may be halted because of 

market conditions or for reasons that, in 

the view of the Exchange, make trading 

in the Shares inadvisable. These may 

include: (1) The extent to which trading 

is not occurring in the securities 

comprising an Underlying Index of a 

Fund, or (2) whether other unusual 

conditions or circumstances detrimental 

to the maintenance of a fair and orderly 

market are present. In addition, trading 

in Shares will be subject to trading halts 

caused by extraordinary market 

volatility pursuant to the Exchange’s 

‘‘circuit breaker’’ rule 11 or by the halt or 

suspension of trading of the underlying 

securities. See ‘‘UTP Trading Criteria’’

above for specific instances when the 

Exchange will cease trading the Shares. 

Shares will be deemed ‘‘Eligible 

Listed Securities,’’ as defined in NYSE 

Arca Equities Rule 7.55, for purposes of 

the Intermarket Trading System (‘‘ITS’’) 

Plan and therefore will be subject to the 

trade through provisions of NYSE Arca 

Equities Rule 7.56, which require that 

ETP Holders avoid initiating tradethroughs for ITS securities. 

Surveillance 

The Exchange will utilize its existing 

surveillance procedures applicable to 

ICUs to monitor trading of the Funds. 

Surveillance procedures applicable to 

trading in the proposed Shares are 

comparable to those applicable to other 

ICUs currently trading on the Exchange. 

The Exchange represents that these 

surveillance procedures are adequate to 

properly monitor the trading of the 

Funds. The Exchange’s current trading 

surveillances focus on detecting 

securities trading outside their normal 

patterns. When such situations are 

detected, surveillance analysis follows 

and investigations are opened, where 

appropriate, to review the behavior of 

all relevant parties for all relevant 

trading violations. 

Information Bulletin 

Prior to the commencement of 

trading, the Exchange will inform its 

ETP Holders in an Information Bulletin 

of the special characteristics and risks 

associated with trading the Shares. 

Specifically, the Information Bulletin 

will discuss the following: (1) The 

procedures for purchases and 

redemptions of Shares in Creation Unit 

Aggregations (and that Shares are not 

individually redeemable); (2) NYSE 

Arca Equities Rule 9.2(a),12 which 

imposes a duty of due diligence on its 

ETP Holders to learn the essential facts 

relating to every customer prior to 

trading the Shares; (3) how information 

regarding the IOPV is disseminated; (4) 

the requirement that ETP Holders 

deliver a prospectus to investors 

purchasing newly issued Shares prior to 

or concurrently with the confirmation of 

a transaction; and (5) trading 

information. 

In addition, the Information Bulletin 

will advise ETP Holders, prior to the 

commencement of trading, of the 

prospectus delivery requirements 

applicable to the Funds.13 The 

Exchange notes that investors 

purchasing Shares directly from the 

Trust will receive a prospectus. ETP 

Holders purchasing Shares from the 

Trust for resale to investors will deliver 

a prospectus to such investors. The 

Information Bulletin will also discuss 

any exemptive, no-action and 

interpretive relief granted by the 

Commission from any rules under the 

Act. 

In addition, the Information Bulletin 

will reference that the Trust is subject 

to various fees and expenses described 

in the Registration Statement. The 

Information Bulletin will also disclose 

that the NAV for the Shares will be 

calculated shortly after 4 p.m. ET each 

trading day. 

The Commission has granted the 

Funds an exemption from certain 

prospectus delivery requirements under 

Section 24(d) of the Investment 

Company Act of 1940 (‘‘1940 Act’’).14

Any product description used in 

reliance on the Section 24(d) exemptive 

order will comply with all 

representations made and all conditions 

contained in the Funds’ application for 

orders under the 1940 Act.15

In connection with the trading of the 

Funds, the Exchange would inform ETP 

Holders in an Information Circular of 

the special characteristics and risks 

associated with trading the Funds, 

including how the Funds are created 

and redeemed, the prospectus or 

product description delivery 

requirements applicable to the Funds, 

applicable Exchange rules, how 

information about the value of the 

underlying index is disseminated, and 

trading information. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act 16 in general and 

Section 6(b)(5) of the Act 17 in particular 

in that it is designed 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 and perfect the 

mechanisms of a free and open market 

and to protect investors and the public 

interest. 

In addition, the proposed rule change 

is consistent with Rule 12f–5 18 under 

the Act because it deems the Shares to 

be equity securities, thus rendering the 

Shares subject to the Exchange’s rules 

governing the trading of equity 

securities. 

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 

mstockstill on PROD1PC70 with NOTICES

Federal Register / Vol. 72, No. 14 / Tuesday, January 23, 2007 / Notices 2919 

19 In approving this rule change, the Commission 

notes that it has considered the proposed rule’s 

impact on efficiency, competition, and capital 

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

20 15 U.S.C. 78f(b)(5). 

21 15 U.S.C. 78l(f). 

22Section 12(a) of the Act, 15 U.S.C. 78l(a), 

generally prohibits a broker-dealer from trading a 

security on a national securities exchange unless 

the security is registered on that exchange pursuant 

to Section 12 of the Act. Section 12(f) of the Act 

excludes from this restriction trading in any 

security to which an exchange ‘‘extends UTP.’’

When an exchange extends UTP to a security, it 

allows its members to trade the security as if it were 

listed and registered on the exchange even though 

it is not so listed and registered. 

23See NYSE Proposal, supra note 5. 

24 17 CFR 240.12f–5. 

25 15 U.S.C. 78k–1(a)(1)(C)(iii). 

26See NYSE Proposal, supra note 5. 

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. 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 

No. SR–NYSEArca–2006–63 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 No. 

SR–NYSEArca–2006–63. 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 No. 

SR–NYSEArca–2006–63 and should be 

submitted on or before February 13, 

2007. 

IV. Commission’s Findings and Order 

Granting Accelerated Approval of 

Proposed Rule Change 

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.19 In particular, the 

Commission finds that the proposed 

rule change is consistent with Section 

6(b)(5) of the Act,20 which requires that 

an exchange have rules designed, among 

other things, 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. The Commission 

believes that this proposal will benefit 

investors by increasing competition 

among markets that trade Shares of the 

Funds. 

In addition, the Commission finds 

that the proposal is consistent with 

Section 12(f) of the Act,21 which permits 

an exchange to trade, pursuant to UTP, 

a security that is listed and registered on 

another exchange.22 The Commission 

notes that it previously approved the 

listing and trading of the Shares on the 

NYSE.23 The Commission also finds that 

the proposal is consistent with Rule 

12f–5 under the Act,24 which provides 

that an exchange shall not extend UTP 

to a security unless the exchange has in 

effect a rule or rules providing for 

transactions in the class or type of 

security to which the exchange extends 

UTP. The Exchange has represented that 

it meets this requirement because it 

deems the Shares to be an equity 

security, 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,25 which sets 

forth Congress’s 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 disseminated through the 

Consolidated Quotation System. 

Furthermore, a Value Calculator 

disseminates the value of IOPV every 15 

seconds. Because of the importance of 

this information, if a Value Calculator 

ceases to maintain or to calculate the 

value of the IOPV or if the value of the 

index ceases to be widely available, 

NYSE Arca Equities Rule 7.34 would 

require the Exchange to cease trading 

the Shares. 

Finally, the Commission notes that, if 

the Shares should be delisted by NYSE, 

the original 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 will distribute an 

information circular to its ETP Holders 

prior to the commencement of trading of 

the Shares on the Exchange that 

explains the terms, characteristics, and 

risks of trading the Shares. 

3. The Exchange will require ETP 

Holders to deliver a prospectus to 

investors purchasing newly issued 

Shares and will note this prospectus 

delivery requirement in the information 

circular. 

This approval order is conditioned on 

the Exchange’s adherence to these 

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 previously, the Commission 

previously found that the listing and 

trading of the Shares on NYSE is 

consistent with the Act.26 The 

Commission presently is not aware of 

any regulatory issue that should cause it 

to revisit that earlier finding or 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 

mstockstill on PROD1PC70 with NOTICES

2920 Federal Register / Vol. 72, No. 14 / Tuesday, January 23, 2007 / Notices 

27 15 U.S.C. 78s(b)(2). 

28 17 CFR 200.30–3(a)(12). 

competition in the market for the 

Shares. 

V. Conclusion 

It is therefore ordered, pursuant to 

section 19(b)(2) of the Act,27 that the 

proposed rule change (SR–NYSEArca–

2006–63), as modified by Amendment 

Nos. 1 and 2, be and hereby is, approved 

on an accelerated basis. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.28

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–870 Filed 1–22–07; 8:45 am] 

BILLING CODE 8011–01–P 

SMALL BUSINESS ADMINISTRATION 

[Disaster Declaration #10784] 

Kansas Disaster #KS–00015 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Notice. 

SUMMARY: This is a Notice of the 

Presidential declaration of a major 

disaster for Public Assistance Only for 

the State of Kansas (FEMA–1675–DR) , 

dated 01/07/2007. 

Incident: Severe Winter Storm. 

Incident Period: 12/28/2006 through 

12/31/2006. 

Effective Date: 01/07/2007. 

Physical Loan Application Deadline 

Date: 03/08/2007. 

ADDRESSES: Submit completed loan 

applications to: U.S. Small Business 

Administration, Processing And 

Disbursement Center, 14925 Kingsport 

Road, Fort Worth , TX 76155. 

FOR FURTHER INFORMATION CONTACT: A. 

Escobar, Office of Disaster Assistance, 

U.S. Small Business Administration, 

409 3rd Street, SW., Suite 6050, 

Washington, DC 20416. 

SUPPLEMENTARY INFORMATION: Notice is 

hereby given that as a result of the 

President’s major disaster declaration on 

01/07/2007, Private Non-Profit 

organizations that provide essential 

services of a governmental nature may 

file disaster loan applications at the 

address listed above or other locally 

announced locations. 

The following areas have been 

determined to be adversely affected by 

the disaster: 

Primary Counties: 

Cheyenne, Clark, Comanche, Decatur, 

Edwards, Ellis, Finney, Ford, Gove, 

Graham, Grant, Gray, Greeley, 

Hamilton, Haskell, Hodgeman, 

Jewell, Kearny, Kiowa, Lane, Logan, 

Meade, Morton, Ness, Norton, 

Osborne, Pawnee, Phillips, Rawlins, 

Rooks, Rush, Russell, Scott, 

Seward, Sheridan, Sherman, Smith, 

Stafford, Stanton, Stevens, Thomas, 

Trego, Wallace, Wichita 

The Interest Rates are: 

Percent 

Other (Including Non-Profit Organizations) With Credit Available 

Elsewhere ................................... 5.250 

Businesses And Non-Profit Organizations Without Credit Available 

Elsewhere ................................... 4.000 

The number assigned to this disaster 

for physical damage is 10784. 

(Catalog of Federal Domestic Assistance 

Number 59008) 

James E. Rivera, 

Acting Associate Administrator for Disaster 

Assistance. 

[FR Doc. E7–896 Filed 1–22–07; 8:45 am] 

BILLING CODE 8025–01–P 

SMALL BUSINESS ADMINISTRATION 

[Disaster Declaration #10783] 

Nebraska Disaster #NE–00011 

AGENCY: Small Business Administration. 

ACTION: Notice. 

SUMMARY: This is a Notice of the 

Presidential declaration of a major 

disaster for Public Assistance Only for 

the State of Nebraska (FEMA–1674–DR), 

dated 01/07/2007. 

Incident: Severe Winter Storms. 

Incident Period: 12/19/2006 through 

01/01/2007. 

Effective Date: 01/07/2007. 

Physical Loan Application Deadline 

Date: 03/08/2007. 

ADDRESSES: Submit completed loan 

applications to: U.S. Small Business 

Administration, Processing And 

Disbursement Center, 14925 Kingsport 

Road, Fort Worth, TX 76155. 

FOR FURTHER INFORMATION CONTACT: A. 

Escobar, Office of Disaster Assistance, 

U.S. Small Business Administration, 

409 3rd Street, SW., Suite 6050, 

Washington, DC 20416. 

SUPPLEMENTARY INFORMATION: Notice is 

hereby given that as a result of the 

President’s major disaster declaration on 

01/07/2007, Private Non-Profit 

organizations that provide essential 

services of a governmental nature may 

file disaster loan applications at the 

address listed above or other locally 

announced locations. 

The following areas have been 

determined to be adversely affected by 

the disaster: 

Primary Counties: 

Adams, Antelope, Blaine, Boone, 

Brown, Buffalo, Cedar, Chase, 

Cheyenne, Clay, Custer, Dawson, 

Dixon, Dundy, Fillmore, Franklin, 

Frontier, Furnas, Garden, Garfield, 

Gosper, Greeley, Hall, Hamilton, 

Harlan, Hayes, Hitchcock, Holt, 

Howard, Kearney, Keith, Keya Paha, 

Kimball, Knox, Lincoln, Logan, 

Loup, Madison, Merrick, Morrill, 

Nance, Nuckolls, Perkins, Phelps, 

Pierce, Platte, Polk, Red Willow, 

Rock, Seward, Sherman, Stanton, 

Valley, Wayne, Webster, Wheeler 

York 

The Interest Rates are: 

Percent 

Other (Including Non-Profit Organizations) With Credit Available 

Elsewhere ................................... 5.250 

Businesses And Non-Profit Organizations Without Credit Available 

Elsewhere ................................... 4.000 

The number assigned to this disaster 

for physical damage is 10783. 

(Catalog of Federal Domestic Assistance 

Number 59008) 

James E. Rivera, 

Acting Associate Administrator for Disaster 

Assistance. 

[FR Doc. E7–897 Filed 1–22–07; 8:45 am] 

BILLING CODE 8025–01–P 

SOCIAL SECURITY ADMINISTRATION 

[Document No. 2007–SSA–0004] 

The Ticket To Work and Work 

Incentives Advisory Panel Meeting 

AGENCY: Social Security Administration 

(SSA). 

ACTION: Notice of Quarterly Meeting. 

DATES: February 8, 2007—9 a.m. to 5 

p.m. February 9, 2007—8:30 a.m. to 12 

p.m. 

ADDRESSES: Atlanta Marriott Marquis, 

265 Peachtree Center Avenue Atlanta, 

GA 30303. Phone: 404–521–0000. 

SUPPLEMENTARY INFORMATION: 

Type of meeting: On February 8–9, 

2007, the Ticket to Work and Work 

Incentives Advisory Panel (the ‘‘Panel’’) 

will hold a quarterly meeting open to 

the public. 

Purpose: In accordance with section 

10(a)(2) of the Federal Advisory 

Committee Act, the Social Security 

Administration (SSA) announces a 

mstockstill on PROD1PC70 with NOTICES