26434 Federal Register / Vol. 72, No. 89 / Wednesday, May 9, 2007 / Notices 

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)(2). 

5The current fees applicable to the NYSE Bonds 

system were carried over from ABS. See Securities 

Exchange Act Release No. 55496 (March 20, 2007), 

72 FR 14631 (March 28, 2007) (SR–NYSE–2006–37). 

6 15 U.S.C. 78f(b). 

7 15 U.S.C. 78f(b)(4). 

8 15 U.S.C. 78s(b)(3)(A)(ii). 

9 17 CFR 240.19b–4(f)(2). 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55698; File No. SR–NYSE–

2007–44] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Establish 

Fees for NYSE Bonds 

May 2, 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 May 1, 

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. The Exchange filed the 

proposed rule change pursuant to 

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

19b–4(f)(2) thereunder,4 which renders 

it 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 to eliminate 

certain fees applicable to NYSE 

BondsSM (‘‘NYSE Bonds’’) and adopt a 

new transaction fee of $0.50 per bond 

for executions on NYSE Bonds that 

remove liquidity from NYSE Bonds. 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 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 

On Monday, April 22, 2007, the 

Exchange implemented the operation of 

its NYSE Bond platform. Only NYSE 

members and member organizations that 

have executed and delivered to the 

Exchange the NYSE Bonds Service and 

Access Agreement, including member 

organizations that were subscribers to 

the Automated Bond System (‘‘ABS’’), 

are eligible to access NYSE Bonds 

(‘‘Eligible Members’’). 

Through this filing, the Exchange 

proposes to eliminate certain fees 

associated with the NYSE Bonds 

platform.5 Specifically, the Exchange 

proposes to eliminate its current 

$15,000 annual subscription charge, the 

$5,000 additional display charge, the 

current usage fees ($0.05, $0.10, $0.20, 

and $0.30), the $0.10 Fixed Income 

Public Agency Transaction fee, and the 

$5,000 computer-to-computer service 

fee effective on May 1, 2007. 

The current fee structure for NYSE 

Bonds is a tier-based structure with a 

range from $0.05 to $0.30 per order 

entered, depending on the amount of 

fixed income orders submitted by the 

member organization within the 

calendar year. The Exchange further 

proposes to amend the current 

transaction fees to charge a new 

transaction fee of $0.50 per bond for 

executions on NYSE Bonds that remove 

liquidity from the NYSE Bonds book. To 

facilitate the move to the new fee 

structure, the Exchange intends to waive 

the assessment of any transaction fees 

on NYSE Bonds for fixed income orders 

executed through the system for the 

period of April 23, 2007 through April 

30, 2007. 

Beginning Tuesday, May 1, 2007, the 

Exchange will implement a fee of $5,000 

per year to be assessed to Eligible 

Members that utilize an Exchangesponsored fixed income order 

management and entry (‘‘Graphic User 

Interface’’ or ‘‘GUI’’) system for 

accessing NYSE Bonds. Eligible 

Members that do not utilize the GUI will 

not be assessed the annual fee. 

Finally, the Exchange further seeks to 

remove the current cap on the total fees 

incurred by member organizations that 

participate on or submit orders to NYSE 

Bonds. The current cap is $20,000 per 

year per member organization; however, 

the Exchange may seek to impose a cap 

of such fees at a later date. 

The Exchange believes that the new 

transaction fees that are scheduled to 

become operative on May 1, 2007 will 

bring the NYSE Bonds platform more in 

line with the current fixed income 

market. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with Section 

6(b) of the Act 6 in general and furthers 

the objectives of Section 6(b)(4) 7 in 

particular in that it is intended to 

provide for the equitable allocation of 

reasonable dues, fees, and other charges 

among its members and other persons 

using its facilities. 

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 

Written comments on the proposed 

rule change were neither solicited nor 

received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing proposed rule change is 

subject to Section 19(b)(3)(A)(ii) of the 

Act 8 and subparagraph (f)(2) of Rule 

19b–4 thereunder 9 because it 

establishes or changes a due, fee, or 

other charge applicable only to a 

member imposed by a self-regulatory 

organization. Accordingly, the proposal 

is effective upon Commission receipt of 

the filing. 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. 


sroberts on PROD1PC70 with NOTICES
Federal Register / Vol. 72, No. 89 / Wednesday, May 9, 2007 / Notices 26435 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3 iShares is a registered trademark of Barclays 

Global Investors, N.A. 

4See Post-Effective Amendment No. 63 to the 

Trust’s Registration Statement on Form N–1A, as 

filed with the Commission on November 15, 2006 

and accompanying Statement of Additional 

Information (‘‘SAI’’) (File No. 333–92935 and 811–

09729) (the ‘‘Registration Statement’’). The Trust 

was established as a Delaware statutory trust on 

December 16, 1999. 

5See supra note 4; e-mail from Tim Milanowski, 

Director, NYSE Group, Inc. to Mitra Mehr, Special 

Counsel, Division of Market Regulation 

(‘‘Division’’), Commission, dated April 25, 2007. 

6 In October 1999, the Commission approved 

NYSE Arca Equities Rule 5.2(j)(3), which sets forth 

the rules related to listing and trading criteria for 

ICUs. See Securities Exchange Act Release No. 

41983 (October 6, 1999), 64 FR 56008 (October 15, 

1999) (SR–PCX–1998–29). In July 2001, the 

Commission also approved the Exchange’s generic 

listing standards for listing and trading, or the 

trading pursuant to UTP, of ICUs under NYSE Arca 

Equities Rule 5.2(j)(3). See Securities Exchange Act 

Release No. 44551 (July 12, 2001), 66 FR 37716 

(July 19, 2001) (SR–PCX–2001–14). NYSE 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. 

7 17 CFR 240.19b–4(e). 

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–2007–44 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–2007–44. 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 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–2007–44 and should be 

submitted on or before May 30, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–8811 Filed 5–8–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55699; File No. SR–

NYSEArca–2007–27] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and Order 

Granting Accelerated Approval of 

Proposed Rule Change To List and 

Trade Shares of the iShares FTSE 

NAREIT Residential Index Fund 

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 March 9, 

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 Commission is publishing this 

notice and order to solicit comments on 

the proposed rule change from 

interested persons and to approve the 

proposed rule change on an accelerated 

basis. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to list and 

trade shares (‘‘Shares’’) of the iShares 

FTSE NAREIT Residential Index Fund 

(‘‘Fund’’) of the iShares 3 Trust 

(‘‘Trust’’) based on the FTSE NAREIT 

Residential Index (‘‘Index’’ or 

‘‘Underlying Index’’) pursuant to NYSE 

Arca Equities Rule 5.2(j)(3). The text of 

the proposed rule change is available on 

the Exchange’s Web site at 

www.nyse.com, at the Exchange’s 

principal office, 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 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 

The Exchange proposes to list the 

Shares of the Fund. The Trust is an 

open-end management company with 

over 90 separate investment portfolios 

and is registered under the Investment 

Company Act of 1940 (‘‘1940 Act’’).4

The Fund seeks investment results that 

correspond generally to the price and 

yield performance, before fees and 

expenses, of the Underlying Index, as 

described more fully below. The Fund 

would concentrate its investments in a 

particular industry or group of 

industries to approximately the same 

extent as the Index is so concentrated. 

Because all of the securities included in 

the Underlying Index are issued by real 

estate investment trusts (‘‘REITs’’) that 

invest in residential real estate, the 

Fund would always be concentrated in 

the residential real estate industry.5

Under NYSE Arca Equities Rule 

5.2(j)(3), the Exchange may list and/or 

trade pursuant to unlisted trading 

privileges (‘‘UTP’’) ‘‘Investment 

Company Units’’ (‘‘ICUs’’).6 The Fund 

does not meet the ‘‘generic’’ listing 

requirements of NYSE Arca Equities 

Rule 5.2(j)(3) applicable to listing of 

ICUs in reliance upon Rule 19b–4(e) 

under the Act,7 and thus cannot be 

listed without a filing pursuant to Rule 

19b–4 under the Act. Specifically, the 

Underlying Index does not meet the 

requirement of Commentary .01(a)(3) to 


sroberts on PROD1PC70 with NOTICES