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 


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8The five most heavily weighted component 

stocks constitute approximately 69.90% of the 

weight of the index, as of March 9, 2007. Source: 

Bloomberg. 

9 15 U.S.C. 80b. 

10Among these is a requirement that, at the close 

of each quarter of the Fund’s taxable year: (1) At 

least 50% of the market value of the Fund’s total 

assets must be represented by cash items, U.S. 

government securities, securities of other RICs, and 

other securities, with such other securities limited 

for the purpose of this calculation with respect to 

any one issuer to an amount not greater than 5% 

of the value of the Fund’s assets and not greater 

than 10% of the outstanding voting securities of 

such issuer; and (2) not more than 25% of the value 

of its total assets may be invested in securities of 

any one issuer, or two or more issuers that are 

controlled by the Fund (within the meaning of 

Section 851(b)(4)(B) of the Code) and that are 

engaged in the same or similar trades or business 

(other than U.S. government securities or other 

RICs). 

11See supra note 5. 

NYSE Arca Equities Rule 5.2(j)(3) that 

the five most heavily weighted 

component stocks cannot exceed 65% of 

the weight of the index or portfolio.8

Operation of the Fund 

Barclays Global Fund Advisors 

(‘‘BGFA’’), a subsidiary of Barclays 

Global Investors, N.A. (‘‘BGI’’), would 

be the investment adviser (‘‘Advisor’’) to 

the Fund. The Advisor is registered as 

an investment adviser under Section 

203 of the Investment Advisers Act of 

1940 9 (‘‘Advisers Act’’). As the Advisor, 

BGFA would have overall responsibility 

for the general management and 

administration of the Trust. BGFA 

would provide an investment program 

for the Fund and would manage the 

investment of the Fund’s assets. In 

seeking to achieve a Fund’s investment 

objective, BGFA would use teams of 

portfolio managers, investment 

strategists, and other investment 

specialists. BGFA would also arrange for 

transfer agency, custody, fund 

administration, and all other nondistribution-related services necessary 

for the Fund to operate. While the Fund 

would be managed by the Advisor or 

portfolio manager, the Trust’s Board of 

Trustees would have responsibility for 

the overall management and operations 

of the Fund. 

The Index Provider 

FTSE International Limited (‘‘FTSE’’) 

is the provider of the Index. FTSE is an 

independent company whose sole 

business is the creation and 

management of indices and associated 

data services. FTSE is a joint venture 

between The Financial Times and the 

London Stock Exchange and ‘‘FTSETM’’

is a trademark owned jointly by the 

London Stock Exchange plc and The 

Financial Times Limited. FTSE 

calculates over 60,000 indices daily, 

including more than 600 real-time 

indices. ‘‘NAREIT’’ is a trademark of 

National Association of Real Estate 

Investment Trusts (‘‘NAREIT’’). Both the 

FTSE and NAREIT trademarks are used 

by FTSE under license. FTSE is not 

affiliated with the Trust, BGFA, or its 

affiliates or SEI Investments Distribution 

Co. (‘‘SEI’’), the distributor of the Fund 

(as discussed below). BGI has entered 

into a license agreement with FTSE to 

use the Underlying Index and is sublicensing rights in the Underlying Index 

to the Trust at no charge. 

Administrator, Custodian, and Transfer 

Agent 

Investors Bank & Trust Company 

(‘‘Investors Bank’’) would serve as 

administrator, custodian, and transfer 

agent for the Fund (‘‘Administrator’’). 

Under the Administration Agreement 

with the Trust, the Administrator would 

provide necessary administrative, legal, 

tax, accounting, and financial reporting 

services for the maintenance and 

operations of the Trust and the Fund. 

Under the Custodian Agreement with 

the Trust, the Administrator would 

maintain cash, securities, and other 

assets of the Trust and the Fund and 

would keep all necessary accounts and 

records. The Administrator would be 

required to deliver securities held by the 

Administrator and to make payments for 

securities purchased by the Trust for the 

Fund. Also, under a Delegation 

Agreement, the Administrator may 

appoint certain foreign custodians or 

foreign custody managers for Fund 

investments outside the United States. 

Pursuant to a Transfer Agency and 

Service Agreement with the Trust, the 

Administrator would act as a transfer 

agent for the Fund’s authorized and 

issued shares of beneficial interest, and 

as dividend disbursing agent of the 

Trust. 

The Distributor 

SEI would be the distributor of shares 

of the Trust (‘‘Distributor’’). The 

Distributor has entered into a 

Distribution Agreement with the Trust 

pursuant to which it distributes Shares 

of the Fund. Shares would be offered 

continuously for sale by the Fund 

through the Distributor only in Creation 

Unit Aggregations (as described more 

fully below). Shares in less than 

Creation Unit Aggregations would not 

be distributed by the Distributor. The 

Distributor would deliver the 

prospectus and, upon request, the 

Statement of Additional Information 

(‘‘SAI’’) to persons purchasing Creation 

Unit Aggregations and would maintain 

records of both orders placed with it 

and confirmations of acceptance 

furnished by it. The Distributor is a 

broker-dealer registered under the Act 

and a member of NASD. 

The Fund intends to qualify as a 

‘‘regulated investment company’’

(‘‘RIC’’) under the Internal Revenue 

Code (‘‘Code’’). The Fund must, among 

other things, meet certain diversification 

tests imposed by the Code to satisfy RIC 

requirements.10

Description of the Fund and the 

Underlying Index 

According to the Fund’s Registration 

Statement, the Fund would be an 

‘‘index fund’’ that seeks investment 

results that correspond generally to the 

price and yield performance, before fees 

and expenses, of the Underlying Index. 

The Underlying Index measures the 

performance of the residential real 

estate sector of the U.S. equity market. 

The Fund would concentrate its 

investments in a particular industry or 

group of industries to approximately the 

same extent as the Underlying Index is 

so concentrated. Because all of the 

securities included in the Underlying 

Index are issued by REITs that invest in 

residential real estate, the Fund would 

always be concentrated in the 

residential real estate industry.11

The Underlying Index is sponsored by 

the Index Provider. The Index Provider 

determines the relative weightings of 

the securities in the Underlying Index 

and publishes information regarding the 

market value of the Underlying Index. 

The Advisor would use a ‘‘passive’’ or 

‘‘indexing’’ approach to try to achieve 

the Fund’s investment objective. The 

Fund would not try to ‘‘beat’’ the index 

it tracks and would not seek temporary 

defensive positions when markets 

decline or appear overvalued. Indexing 

eliminates the chance that the Fund 

may substantially outperform the 

Underlying Index, but also may 

eliminate some of the risk of active 

management, such as poor security 

selection. Indexing seeks to achieve 

lower costs and better after-tax 

performance by keeping portfolio 

turnover low in comparison to actively 

managed investment companies. 

The Fund would invest at least 90% 

of its assets in the securities of its 

Underlying Index or in American 

Depositary Receipts (‘‘ADRs’’) 

representing securities in the 

Underlying Index. The Fund may invest 

the remainder of its assets in securities 

not included in the Underlying Index, 

but which the Advisor believes would 

help the Fund track the Underlying 

Index. For example, the Fund may 


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invest in securities not included in the 

Underlying Index to reflect various 

corporate actions (such as mergers) and 

other changes in the Underlying Index 

(such as reconstitutions, additions, and 

deletions). The Fund also may invest its 

other assets in futures contracts or other 

derivatives related to the Underlying 

Index, as well as cash and cash 

equivalents, including shares of money 

market funds affiliated with the 

Advisor. The Advisor would use a 

representative sampling indexing 

strategy for the Fund. 

‘‘Representative Sampling’’ is an 

indexing strategy that involves investing 

in a representative sample of the 

securities, included in the Underlying 

Index, that collectively have an 

investment profile similar to the 

Underlying Index. The securities 

selected are expected to have, in the 

aggregate, investment characteristics 

(based on factors such as market 

capitalization and industry weightings), 

fundamental characteristics (such as 

return variability, earnings valuation, 

and yield), and liquidity measures 

similar to those of the Underlying Index. 

The Fund may or may not hold all of the 

securities that are included in the 

Underlying Index. 

The Advisor expects that, over time, 

the correlation between the Fund’s 

performance and that of the Underlying 

Index, before fees and expenses, would 

be 95% or better. A correlation 

percentage of 100% would indicate 

perfect correlation. The difference 

between 100% correlation and the 

Fund’s actual percentage correlation 

with the Underlying Index is called 

‘‘tracking error.’’ The Fund’s use of a 

representative sampling indexing 

strategy can be expected to result in 

greater tracking error than if the Fund 

used a replication indexing strategy. 

‘‘Replication’’ is an indexing strategy in 

which a fund invests in substantially all 

of the securities in its underlying index 

in approximately the same proportions 

as in the underlying index. 

The Fund would concentrate its 

investments only in the residential real 

estate sector to approximately the same 

extent that the Underlying Index is so 

concentrated. For purposes of this 

limitation, securities of the U.S. 

government (including its agencies and 

instrumentalities), repurchase 

agreements collateralized by U.S. 

government securities, and securities of 

state or municipal governments and 

their political subdivisions are not 

considered to be issued by members of 

any industry. 

The Underlying Index is included in 

the FTSE NAREIT U.S. Real Estate 

Indices (‘‘FTSE NAREIT Indices’’). The 

FTSE NAREIT Indices are primarily 

rule-based, but are also monitored by 

the FTSE NAREIT Index Advisory 

Committee. All tax-qualified REITs that 

are listed on the New York Stock 

Exchange (‘‘NYSE’’), the American 

Stock Exchange (‘‘Amex’’), or the 

Nasdaq Stock Market (‘‘Nasdaq’’) are 

eligible for inclusion in the FTSE 

NAREIT Indices. Potential components 

of the FTSE NAREIT Residential Index 

are determined by sector classifications 

of components in the FTSE NAREIT 

Composite Index. As part of an annual 

review, all eligible securities are ranked 

by their full market capitalizations as at 

the close of business on the last 

business day in November. Stocks are 

then screened to ensure they have 

sufficient liquidity. Factors used to 

determine liquidity include the 

availability of current and reliable price 

information and the level of trading 

volume relative to shares outstanding. 

Value traded and float turnover are also 

analyzed periodically to monitor 

liquidity. The FTSE NAREIT Index 

Advisory Committee meets to approve 

the annual review on the Wednesday 

after the first Friday in December. Any 

component changes resulting from the 

annual review would be implemented at 

the close of business on the third Friday 

of December. 

When calculating index component 

weights, component companies’ shares 

are adjusted for available float. In 

general, shares held by governments, 

corporations, strategic partners, or other 

control groups are excluded from a 

component company’s outstanding 

shares. The FTSE NAREIT Composite 

Index would be periodically reviewed 

for changes in free float. These reviews 

would occur on a quarterly basis, and 

implementation of any changes to the 

Underlying Index, and potentially the 

FTSE NAREIT Indices, would happen at 

the close of business on the third Friday 

in March, June, September, or 

December. 

The FTSE NAREIT Index Advisory 

Committee is responsible for 

undertaking the review of the FTSE 

NAREIT Indices and for approving 

changes in components and is also 

responsible for the sector classification 

of components of the FTSE NAREIT 

Indices. The Chairman and Deputy 

Chairman of the FTSE NAREIT Index 

Advisory Committee are collectively 

responsible for approving component 

changes to the FTSE NAREIT Indices 

between meetings of the Advisory 

Committee. Adjustments to reflect a 

major change in the amount or structure 

of a component company’s issued 

securities would be made before the 

start of the index calculation on the day 

on which the change takes effect. 

Adjustments to reflect less significant 

changes would be implemented before 

the start of the index calculation on the 

day following the announcement of the 

change. Adjustments generally would be 

made before the start of the index 

calculations on the day concerned, 

unless market conditions prevent such 

adjustment. If a component is delisted, 

or ceases to have a firm quotation, or is 

subject to a takeover offer which has 

been declared wholly unconditional, it 

would be removed from the indices of 

which it is a component. 

The FTSE NAREIT Indices are 

calculated continuously during normal 

trading hours of the Nasdaq, Amex, and 

NYSE, and would be closed on U.S. 

holidays. The prices used to calculate 

the FTSE NAREIT Indices are the 

Reuters daily closing prices or those 

figures accepted as such. FTSE NAREIT 

reserves the right to use an alternative 

pricing source on any given day. For 

end-of-day alternative currency 

calculations, FTSE NAREIT uses the 

WM/Reuters Closing Spot Rates. 

The Fund would issue and redeem, 

on a continuous basis, shares at its net 

asset value (‘‘NAV’’) only in blocks of 

50,000 shares or multiples thereof (each, 

a ‘‘Creation Unit’’ or a ‘‘Creation Unit 

Aggregation’’). 

Only certain large institutional 

investors known as Authorized 

Participants (as defined below) may 

purchase or redeem Creation Units 

directly with the Fund at the NAV. 

These transactions are usually in 

exchange for a basket of securities 

similar to the Fund’s portfolio and an 

amount of cash. Except when aggregated 

in Creation Units, Shares of the Fund 

are not redeemable securities. 

Shareholders who are not Authorized 

Participants may not redeem shares 

directly from the Fund. 

The Fund would impose a purchase 

transaction fee and a redemption 

transaction fee to offset transfer and 

other transaction costs associated with 

the issuance and redemption of Creation 

Units. Purchasers and redeemers of 

Creation Units for cash are required to 

pay an additional variable charge to 

compensate for brokerage and market 

impact expenses. The creation and 

redemption transaction fees for 

creations and redemptions in-kind for 

the Fund are described in the Fund’s 

prospectus. 

All orders to purchase Shares of the 

Fund in Creation Units must be placed 

with the Distributor by or through an 

‘‘Authorized Participant,’’ which is 

either: (1) A ‘‘Participating Party,’’ i.e., 

a broker-dealer or other participant in 

the clearing process through the 


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Continuous Net Settlement System of 

the National Securities Clearing 

Corporation (‘‘NSCC’’), a clearing 

agency that is registered with the 

Commission (‘‘Clearing Process’’); or (2) 

a Depository Trust Company (‘‘DTC’’) 

Participant that has executed a 

‘‘Participant Agreement’’ with the 

Distributor. 

Consideration for Purchase of Creation 

Units 

The consideration for purchase of 

Creation Unit Aggregations of the Fund 

generally consists of the in-kind deposit 

of a designated portfolio of equity 

securities, the Deposit Securities, which 

constitutes a substantial replication, or 

a portfolio sampling representation, of 

the stocks involved in the Fund’s 

Underlying Index and an amount of 

cash (the ‘‘Cash Component’’) computed 

as described below. Together, the 

Deposit Securities and the Cash 

Component constitute the ‘‘Fund 

Deposit,’’ which represents the 

minimum initial and subsequent 

investment amount for a Creation Unit 

Aggregation. 

The Cash Component is sometimes 

also referred to as the ‘‘Balancing 

Amount.’’ The Cash Component serves 

the function of compensating for any 

difference between the NAV per 

Creation Unit Aggregation and the 

Deposit Amount. The Cash Component 

is an amount equal to the difference 

between the NAV of the shares (per 

Creation Unit Aggregation) and the 

‘‘Deposit Amount,’’ which is an amount 

equal to the market value of the Deposit 

Securities. If the Cash Component is a 

positive number (i.e., the NAV per 

Creation Unit Aggregation exceeds the 

Deposit Amount), the creator would 

deliver the Cash Component. If the Cash 

Component is a negative number (i.e., 

the NAV per Creation Unit Aggregation 

is less than the Deposit Amount), the 

creator would receive the Cash 

Component. Computation of the Cash 

Component excludes any stamp duty or 

other similar fees and expenses payable 

upon transfer of beneficial ownership of 

the Deposit Securities, which shall be 

the sole responsibility of the Authorized 

Participant. 

BGFA, through the NSCC, makes 

available on each business day, prior to 

the opening of business on the 

applicable listing exchange (currently 

9:30 a.m. Eastern time), the list of the 

names and the required number of 

shares of each Deposit Security to be 

included in the current Fund Deposit 

(based on information at the end of the 

previous business day) for the Fund. 

Such Deposit Securities are applicable, 

subject to any adjustments as described 

below, in order to effect creations of 

Creation Unit Aggregations of the Fund 

until such time as the next-announced 

composition of the Deposit Securities is 

made available. The identity and 

number of shares of the Deposit 

Securities required for the Fund Deposit 

for the Fund changes as rebalancing 

adjustments and corporate action events 

are reflected from time to time by BGFA 

with a view to the investment objective 

of the Fund. The composition of the 

Fund may also change in response to 

adjustments to the weighting or 

composition of the component 

securities of the Underlying Index. 

In addition, the Trust reserves the 

right to permit or require the 

substitution of an amount of cash (i.e. a 

‘‘cash in lieu’’ amount) to be added to 

the Cash Component to replace any 

Deposit Security that may not be 

available in sufficient quantity for 

delivery or that may not be eligible for 

transfer through the systems of DTC or 

the Clearing Process. The Trust also 

reserves the right to permit or require a 

‘‘cash in lieu’’ amount where the 

delivery of the Deposit Security by the 

Authorized Participant would be 

restricted under the securities laws or 

where the delivery of the Deposit 

Security to the Authorized Participant 

would result in the disposition of the 

Deposit Security by the Authorized 

Participant becoming restricted under 

the securities laws, or in certain other 

situations. The adjustments described 

above would reflect changes known to 

BGFA on the date of announcement to 

be in effect by the time of delivery of the 

Fund Deposit, in the composition of the 

Underlying Index or resulting from 

certain corporate actions. 

Redemption of Shares in Creation Units 

Shares may be redeemed only in 

Creation Unit Aggregations at their NAV 

next determined after receipt of a 

redemption request in proper form by 

the Fund through Investors Bank and 

only on a business day. The Fund 

would not redeem shares in amounts 

less than Creation Unit Aggregations. A 

beneficial owner must accumulate 

enough shares in the secondary market 

to constitute a Creation Unit 

Aggregation to have such shares 

redeemed by the Trust. There can be no 

assurance, however, that there would be 

sufficient liquidity in the public trading 

market at any time to permit assembly 

of a Creation Unit Aggregation. Investors 

should expect to incur brokerage and 

other costs in connection with 

assembling a sufficient number of shares 

to constitute a redeemable Creation Unit 

Aggregation. 

With respect to the Fund, BGFA, 

through the NSCC and the Distributor, 

would make available immediately prior 

to the opening of business on the 

applicable listing exchange (currently 

9:30 a.m. Eastern time) on each business 

day, the identity of the Fund securities 

that would be applicable (subject to 

possible amendment or correction) to 

redemption requests received in proper 

form on that day (‘‘Fund Securities’’). 

Fund Securities received on redemption 

may not be identical to Deposit 

Securities that are applicable to 

creations of Creation Unit Aggregations. 

Unless cash redemptions are available 

or specified for the Fund, the 

redemption proceeds for a Creation Unit 

Aggregation would generally consist of 

Fund Securities—as announced on the 

business day of the request for 

redemption received in proper form—

plus cash in an amount equal to the 

difference between the NAV of the 

shares being redeemed, as next 

determined after a receipt of a request 

in proper form, and the value of the 

Fund Securities (the ‘‘Cash Redemption 

Amount’’), less a redemption 

transaction fee as described below. If the 

Fund Securities have a value greater 

than the NAV of the shares, a 

compensating cash payment equal to the 

difference must be made by or through 

an Authorized Participant by the 

redeeming shareholder. 

The right of redemption may be 

suspended or the date of payment 

postponed with respect to the Fund: (i) 

For any period during which the NYSE 

is closed (other than customary 

weekend and holiday closings); (ii) for 

any period during which trading on the 

NYSE is suspended or restricted; (iii) for 

any period during which an emergency 

exists as a result of which disposal of 

the shares of the Fund or determination 

of the Fund’s NAV is not reasonably 

practicable; or (iv) in such other 

circumstances as is permitted by the 

Commission. 

Dividends, Distributions, and Taxes 

Dividends from net investment 

income, if any, would be declared and 

paid at least annually by the Fund. 

Distributions of net realized securities 

gains, if any, generally would be 

declared and paid once a year, but the 

Trust may make distributions on a more 

frequent basis for the Fund. The Trust 

reserves the right to declare special 

distributions if, in its reasonable 

discretion, such action is necessary to 

improve tracking error or is necessary or 

advisable to preserve the status of the 

Fund as a RIC or to avoid imposition of 

income or excise taxes on undistributed 

income. 


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12 Valuing a Fund’s investments using fair value 

pricing would result in using prices for those 

investments that may differ from current market 

valuations. Use of fair value prices and certain 

current market valuations could result in a 

difference between the prices used to calculate a 

Fund’s NAV and the prices used by the Fund’s 

Underlying Index, which in turn could result in a 

difference between the Fund’s performance and the 

performance of the Fund’s Underlying Index. 

13See e-mail from Tim Milanowski, Director, 

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

Division, Commission, dated May 2, 2007 (‘‘May 

NYSE Arca e-mail’’). 

14Source: Bloomberg. 

Dividends and other distributions on 

shares would be distributed on a prorata basis to beneficial owners of such 

shares. Dividend payments would be 

made through DTC Participants and 

Indirect Participants to beneficial 

owners then of record with proceeds 

received from the Fund. 

Dividend Reinvestment Service 

No dividend reinvestment service 

would be provided by the Trust. Brokerdealers may make available the DTC 

book-entry Dividend Reinvestment 

Service for use by beneficial owners of 

the Fund for reinvestment of their 

dividend distributions. Beneficial 

owners should contact their broker to 

determine the availability and costs of 

the service and the details of 

participation therein. Brokers may 

require beneficial owners to adhere to 

specific procedures and timetables. If 

this service is available and used, 

dividend distributions of both income 

and realized gains would be 

automatically reinvested in additional 

whole shares of the Fund purchased in 

the secondary market. 

Availability of Information Regarding 

Shares and Underlying Index 

The Advisor, through the NSCC, 

would make available on each business 

day, prior to the opening of business on 

the Exchange (currently 9:30 a.m. 

Eastern time), the list of the names and 

the required number of shares of each 

Deposit Security to be included in the 

current Fund Deposit (based on 

information at the end of the previous 

business day) for the Fund. 

Additional information regarding the 

indicative value of shares of the Fund, 

also known as the ‘‘indicative optimized 

portfolio value’’ (‘‘IOPV’’), would be 

disseminated every 15 seconds through 

the Consolidated Tape throughout the 

Opening, Core, and Late Trading 

Sessions (4 a.m. ET to 8 p.m. Eastern 

Time) by the Exchange. The IOPV does 

not necessarily reflect the precise 

composition of the current portfolio of 

securities held by the Fund at a 

particular point in time or the best 

possible valuation of the current 

portfolio. Therefore, the IOPV should 

not be viewed as a ‘‘real-time’’ update 

of the NAV, which is computed only 

once a day. The IOPV is generally 

determined by using both current 

market quotations and/or price 

quotations obtained from broker-dealers 

that may trade in the portfolio securities 

held by the Fund. 

According to the Fund’s Registration 

Statement, Investors Bank would 

calculate the NAV for the Fund 

generally once daily Monday through 

Friday generally as of the regularly 

scheduled close of business of the NYSE 

(normally 4:00 p.m. Eastern time) on 

each day that the NYSE is open for 

trading, based on prices at the time of 

closing, provided that: (i) Any assets or 

liabilities denominated in currencies 

other than the U.S. dollar shall be 

translated into U.S. dollars at the 

prevailing market rates on the date of 

valuation as quoted by one or more 

major banks or dealers that makes a twoway market in such currencies (or a data 

service provider based on quotations 

received from such banks or dealers); 

and (ii) U.S. fixed income assets may be 

valued as of the announced closing time 

for trading in fixed income instruments 

on any day that the Securities Industry 

and Financial Markets Association 

(SIFMA) announces an early closing 

time. The NAV of the Fund would be 

calculated by dividing the value of the 

net assets of the Fund (i.e., the value of 

its total assets less total liabilities) by 

the total number of outstanding shares 

of the Fund, generally rounded to the 

nearest cent. In calculating a Fund’s 

NAV, a Fund’s investments are 

generally valued using market 

valuations. If current market valuations 

are not readily available or such 

valuations do not reflect current market 

values, the affected investments would 

be valued using fair value pricing 

pursuant to the pricing policy and 

procedures approved by the Board of 

Trustees. The frequency with which a 

Fund’s investments are valued using fair 

value pricing is primarily a function of 

the types of securities and other assets 

in which a Fund invests pursuant to its 

investment objective, strategies, and 

limitations.12

The NAV for the Fund would be 

calculated and disseminated daily. In 

addition, the Trust’s Web site would 

include the Fund’s Prospectus and SAI, 

information regarding the Underlying 

Index for the Fund, the prior business 

day’s NAV, and the mid-point of the 

bid-ask spread at the time of calculation 

of the NAV (the ‘‘Bid/Ask Price’’), a 

calculation of the premium or discount 

of the Bid/Ask Price at the time of 

calculation of the NAV against such 

NAV, the Component Securities of the 

Underlying Index, and a description of 

the methodology used in these 

computations. The Bid/Ask Price of the 

Fund is determined using the highest 

bid and the lowest offer on the 

Exchange on which the shares are listed 

for trading. The Exchange would also 

disseminate a variety of data such as 

Total Cash Amount Per Creation Unit, 

Shares Outstanding, and the Fund’s 

NAV on a daily basis by means of CTA 

and CQ High Speed Lines. 

BGFA has informed the Exchange that 

the Fund would make the Fund’s NAV 

available to all market participants at 

the same time. If the NAV is not 

disseminated to all market participants 

at the same time, the Exchange would 

halt trading in the Fund shares. 

The closing prices of the Fund’s 

Deposit Securities are readily available 

from, as applicable, the relevant 

Exchange, automated quotation systems, 

and published or other public sources or 

on-line information services that are 

major market data vendors, such as 

Bloomberg or Reuters. Similarly, 

information regarding market prices and 

volume of Shares would be broadly 

available on a real-time basis throughout 

the trading day. Quotation and last-sale 

information for the Shares would be 

widely disseminated pursuant to the 

CTA Plan.13 The previous day’s closing 

price and volume information for the 

Shares would be published daily in the 

financial sections of many newspapers. 

The value of the Underlying Index 

would be updated intra-day on a realtime basis as individual Component 

Securities change in price and would be 

disseminated every 15 seconds 

throughout the Exchange’s Core Trading 

Session by one or more major market 

data vendors. 

The Underlying Index 

As of March 9, 2007, the FTSE 

NAREIT Residential Index component 

securities had a market capitalization of 

approximately $66,859,124,000, 

representing 20 securities. The average 

market capitalization was 

approximately $3,342,956,000. The ten 

largest components represented 

approximately 91.41% of the index 

weight. The five highest weighted 

securities represented approximately 

69.90% of the index weight. The 

heaviest weighted security represented 

approximately 21.27% of the index 

weight.14

Criteria for Initial and Continued Listing 

The Shares would be subject to the 

criteria for initial and continued listing 


sroberts on PROD1PC70 with NOTICES
26440 Federal Register / Vol. 72, No. 89 / Wednesday, May 9, 2007 / Notices 

15 17 CFR 240.10A–3. 

16See NYSE Arca Equities Rule 7.12. 

17See May NYSE Arca e-mail. 

18For a list of the current members and affiliate 

members of ISG, see www.isgportal.com. 

19NYSE Arca Equities Rule 9.2(a) provides that 

an ETP Holder, before recommending a transaction, 

must have reasonable grounds to believe that the 

recommendation is suitable for its customer based 

on any facts disclosed by the customer as to his 

other security holdings and as to his financial 

situation and needs. Further, the rule provides, 

with a limited exception, that prior to the execution 

of a transaction recommended to a non-institutional 

customer, the ETP Holder shall make reasonable 

efforts to obtain information concerning the 

customer’s financial status, tax status, investment 

objectives, and any other information that it 

believes would be useful to make a 

recommendation. See Securities Exchange Act 

Release No. 34–54045 (June 26, 2006), 71 FR 37971 

(July 3, 2006) (SR–PCX–2005–115). 

20 15 U.S.C. 78k(d)(1). 

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

22 15 U.S.C. 78f(b)(5). 

of Investment Company Units under 

NYSE Arca Equities Rules 5.2(j)(3) and 

5.5(g)(2). A minimum of two Creation 

Units (at least 100,000 Shares) would be 

required to be outstanding at the start of 

trading. This minimum number of 

Shares required to be outstanding at the 

start of trading would be comparable to 

requirements that have been applied to 

previously listed series of ICUs. The 

Exchange believes that the proposed 

minimum number of Shares outstanding 

at the start of trading is sufficient to 

provide market liquidity. 

The continued listing criteria for ICUs 

under NYSE Arca Equities Rule 5.5(g)(2) 

provides that the Exchange would 

consider the suspension of trading and 

delisting (if applicable) of the Shares in 

any of the following circumstances: 

• Following the initial 12-month 

period following upon the 

commencement of trading of the Shares 

of the Fund, there are fewer than 50 

record and/or beneficial holders of such 

Shares for 30 or more consecutive 

trading days; 

• The value of the Underlying Index 

of the Fund is no longer calculated or 

available; or 

• Such other event occurs or 

condition exists that, in the opinion of 

the Exchange, makes further dealings on 

the Exchange inadvisable. 

In addition, the Exchange would 

remove the Shares from trading and 

listing upon termination of the Trust. 

The Exchange represents the Trust is 

required to comply with Rule 10A–3 

under the Act 15 for the initial and 

continued listing of the Shares. 

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. The trading hours for 

the Funds on the Exchange are the same 

as those set forth in NYSE Arca Equities 

Rule 7.34 (4 a.m. to 8 p.m. Eastern 

Time). The minimum trading increment 

for shares of the Funds on the Exchange 

would 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 of 

a Fund. 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: (i) the extent to which 

trading is not occurring in the securities 

comprising an Underlying Index and/or 

the financial instruments of a Fund; or 

(ii) whether other unusual conditions or 

circumstances detrimental to the 

maintenance of a fair and orderly 

market are present. In addition, trading 

in the Shares could be halted pursuant 

to the Exchange’s ‘‘circuit breaker’’

rule 16 or by the halt or suspension of 

trading of the underlying securities. If 

the IOPV or the Index value is not being 

calculated or widely disseminated as 

required,17 the Exchange may halt 

trading during the day in which the 

interruption to the calculation or wide 

dissemination of the IOPV or the Index 

value occurs. If the interruption to the 

calculation or wide dissemination of the 

IOPV or the Index value persists past 

the trading day in which it occurred, the 

Exchange would halt trading no later 

than the beginning of the trading day 

following the interruption. 

Surveillance 

The Exchange intends to utilize its 

existing surveillance procedures 

applicable to derivative products to 

monitor trading in the Shares. The 

Exchange represents that these 

procedures are adequate to properly 

monitor Exchange trading of the Shares 

in all trading sessions and to deter and 

detect violations of Exchange rules. 

The Exchange’s current trading 

surveillance focuses on detecting when 

securities trade 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. 

The Exchange may obtain information 

via the Intermarket Surveillance Group 

(‘‘ISG’’) from other exchanges who are 

members or affiliates of the ISG.18

In addition, the Exchange also has a 

general policy prohibiting the 

distribution of material, non-public 

information by its employees. 

Information Bulletin 

Prior to the commencement of 

trading, the Exchange would inform its 

ETP Holders in an Information Bulletin 

(‘‘Bulletin’’) of the special 

characteristics and risks associated with 

trading the Shares. Specifically, the 

Bulletin would discuss the following: (i) 

The procedures for purchases and 

redemptions of Shares in Creation Unit 

Aggregations (and that Shares are not 

individually redeemable); (ii) NYSE 

Arca Equities Rule 9.2(a),19 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; (iii) how information 

regarding the IOPV is disseminated; (iv) 

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 (v) trading 

information. 

In addition, the Bulletin would 

reference that the Fund is subject to 

various fees and expenses described in 

the Registration Statement. The 

Information Bulletin would discuss 

exemptive, no-action, and interpretive 

relief granted by the Commission from 

Section 11(d)(1) of the Act 20 and certain 

rules under the Act, including Rule 

10a–1, Regulation SHO, Rule 10b–10, 

Rule 14e–5, Rule 10b–17, Rule 11d1–2, 

Rules 15c1–5 and 15c1–6, and Rules 

101 and 102 of Regulation M under the 

Act. The Bulletin would also disclose 

that the NAV for the Shares would be 

calculated after 4 p.m. eastern time each 

trading day. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act,21 in general, and 

furthers the objectives of Section 

6(b)(5),22 in particular, in that it is 

designed to prevent fraudulent and 

manipulative acts and practices, to 

promote just and equitable principles of 

trade, to foster cooperation and 

coordination with persons engaged in 

facilitating transactions in securities, 

and to remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change would impose 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. 


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Federal Register / Vol. 72, No. 89 / Wednesday, May 9, 2007 / Notices 26441 

23 In approving this rule change, the Commission 

notes that it has considered the proposal’s impact 

on efficiency, competition, and capital formation. 

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

24 15 U.S.C. 78f(b)(5). 

25See supra note 8. 

26See Securities Exchange Act Release No. 52826 

(November 22, 2005), 70 FR 71874 (November 30, 

2005) (SR–NYSE–2005–67) (approving the listing of 

the iShares Dow Jones U.S. Energy Sector Index 

Fund where the five highest weighted securities in 

the underlying index represented 83.24% of the 

index weight and the iShares Dow Jones U.S. 

Telecommunications Sector Index Fund where the 

five highest weighted securities in the underlying 

index represented 93.5% of the index weight). The 

Commission also notes that, as of March 9, 2007, 

the heaviest weighted security in the Underlying 

Index represented approximately 21.27% of the 

index weight. See id. (the heaviest weighted 

security in iShares Dow Jones U.S. Energy Sector 

Index Fund represented 31.91% of the index 

weight). 

27 15 U.S.C. 78k–1(a)(1)(C)(iii). 

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. 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–NYSEArca–2007–27 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Nancy M. Morris, Secretary, 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–1090. 

All submissions should refer to File 

Number SR–NYSEArca–2006–27. 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 the Exchange. All 

comments received will be posted 

without change; the Commission does 

not edit personal identifying 

information from submissions. You 

should submit only information that 

you wish to make available publicly. All 

submissions should refer to File 

Number SR–NYSEArca–2007–27 and 

should be submitted on or before May 

30, 2007. 

IV. Commission’s Findings and Order 

Granting Accelerated Approval of the 

Proposed Rule Change 

After careful consideration, 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.23 In 

particular, the Commission finds that 

the proposed rule change is consistent 

with Section 6(b)(5) of the Act,24 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 Fund does not meet the ‘‘generic’’

listing standards of NYSE Arca Rule 

5.2(j)(3) and thus cannot be listed in 

reliance upon Rule 19b–4(e) under the 

Act. As of March 9, 2007, the five 

highest weighted securities in the 

Underlying Index represented 

approximately 69.90% of the index 

weight, rather than 65% as required by 

NYSE Arca’s listing standards under 

Rule 5.2(j)(3).25 Nevertheless, the 

Commission believes that the listing and 

trading of the Shares is consistent with 

the Act. The Commission notes that it 

previously has approved exchange rules 

that contemplate the listing and trading 

of derivative securities products based 

on indices with similar weightings.26 In 

addition, the market capitalization and 

liquidity of the Index components 

suggest that the Index has been 

reasonably designed to reduce the 

likelihood of manipulation. 

The Commission believes that the 

proposal is consistent with Section 

11A(a)(1)(C)(iii) of the Exchange Act,27

which sets forth Congress’ 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. Quotation and last-sale 

information for the Shares would be 

widely disseminated pursuant to the 

CTA Plan. Moreover, the IOPV would be 

calculated and disseminated at least 

every 15 seconds throughout the trading 

day, and the Index value would be 

calculated and disseminated every 15 

seconds during the Exchange’s Core 

Trading Session. The NAV of the Fund 

would be calculated once each trading 

day and disseminated to all market 

participants at the same time. In 

addition, the Trust’s Web site would 

include the Fund’s prospectus and SAI, 

information regarding the Underlying 

Index for the Fund, the prior business 

day’s NAV, the Bid/Ask Price, a 

calculation of the premium or discount 

of the Bid/Ask Price at the time of 

calculation of the NAV against the NAV, 

the component securities of the 

Underlying Index, and a description of 

the methodology used in these 

computations. In sum, the Commission 

believes that the proposal is reasonably 

designed to facilitate access to 

information that will assist investors in 

properly valuing the Shares. 

The Commission believes that the 

proposal is reasonably designed to 

preclude trading of the Shares when 

transparency is impaired. The Exchange 

has represented that if the NAV is not 

disseminated to all market participants 

at the same time, the Exchange would 

halt trading in the Fund shares. If the 

IOPV or the Index value applicable to a 

series of Shares is not being calculated 

and disseminated as required, the 

Exchange may halt trading during the 

day in which the interruption to the 

dissemination of the IOPV or the Index 

value occurs. If the interruption to the 

calculation and dissemination of the 

IOPV or the Index value persists past 

the trading day in which it occurred, the 

Exchange would halt trading no later 

than the beginning of the trading day 

following the interruption. 

The Commission finds that the 

Exchange’s proposed rules and 

procedures for trading of the Shares are 

consistent with the Act. 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. 

In support of this proposal, the 

Exchange has made the following 

representations: 


sroberts on PROD1PC70 with NOTICES
26442 Federal Register / Vol. 72, No. 89 / Wednesday, May 9, 2007 / Notices 

28 15 U.S.C. 78s(b)(2). 

29See supra note 26. 

30 15 U.S.C. 78s(b)(2). 

31 17 CFR 200.30–3(a)(12). 

1. The Exchange would rely on its 

existing surveillance procedures 

applicable to derivative products to 

monitor trading in the Shares. These 

procedures are adequate to properly 

monitor Exchange trading of the Shares 

in all trading sessions and to deter and 

detect violations of Exchange rules. The 

Exchange may obtain information via 

the ISG from other exchanges that are 

members or affiliates of the ISG. 

2. Prior to the commencement of 

trading, the Exchange would inform its 

ETP Holders in an Information Bulletin 

of the special characteristics and risks 

associated with trading the Shares. 

3. If the IOPV or the Index value 

applicable to a series of Shares is not 

being calculated and disseminated as 

required, the Exchange may halt trading 

during the day in which the 

interruption to the dissemination of the 

IOPV or the Index value occurs. If the 

interruption to the calculation and 

dissemination of the IOPV or the Index 

value persists past the trading day in 

which it occurred, the Exchange would 

halt trading no later than the beginning 

of the trading day following the 

interruption. 

This Order is conditioned on NYSE 

Arca’s adherence to the foregoing 

representations. 

The Commission finds good cause to 

approve the proposed rule change, prior 

to the thirtieth day after publication for 

comment in the Federal Register 

pursuant to Section 19(b)(2) of the 

Act.28 Except for the weighting of the 

Underlying Index, the Fund meets the 

‘‘generic’’ listing standards of NYSE 

Arca Equities Rule 5.2(j)(3). In this case, 

the weighting of the five highest 

components of the Underlying Index 

(69.90%) is only marginally higher than 

that required by NYSE Arca’s generic 

listing standards (65%). The market 

capitalization and liquidity of the Index 

components and the fact that they are 

securities issued by REITs that are listed 

and traded on a national securities 

exchange reduce the likelihood of the 

Shares being manipulated. Finally, the 

Commission notes that it previously has 

approved exchange rules that 

contemplate the listing and trading of 

derivative securities based on indices 

with similar weightings.29 The listing 

and trading of the Shares do not appear 

to present any new regulatory concerns. 

Accelerating approval would allow the 

Shares to trade on NYSE Arca without 

undue delay and should generate 

additional competition in the market for 

such products. 

V. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,30 that the 

proposed rule change (SR–NYSEArca–

2007–27), be and it hereby is, approved 

on an accelerated basis. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.31

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–8860 Filed 5–8–07; 8:45 am] 

BILLING CODE 8010–01–P 

SMALL BUSINESS ADMINISTRATION 

[Disaster Declaration # 10859] 

Maine Disaster # ME–00007 

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 Maine ( FEMA–1693–DR), 

dated 04/25/2007. 

Incident: Severe Storms and Inland 

and Coastal Flooding. 

Incident Period: 04/15/2007 and 

continuing. 

Effective Date: 04/25/2007. 

Physical Loan Application Deadline 

Date: 06/25/2007. 

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, Suite 6050, Washington, 

DC 20416. 

SUPPLEMENTARY INFORMATION: Notice is 

hereby given that as a result of the 

President’s major disaster declaration on 

04/25/2007, 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: 

Androscoggin, Cumberland, 

Kennebec, Knox Oxford, 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 10859. 

(Catalog of Federal Domestic Assistance 

Number 59008). 

Herbert L. Mitchell, 

Associate Administrator for Disaster 

Assistance. 

[FR Doc. E7–8823 Filed 5–8–07; 8:45 am] 

BILLING CODE 8025–01–P 

SMALL BUSINESS ADMINISTRATION 

[Disaster Declaration # 10855 and # 10856] 

New Jersey Disaster Number NJ–00006 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Amendment 2. 

SUMMARY: This is an amendment of the 

Presidential declaration of a major 

disaster for the State of New Jersey 

(FEMA–1694–DR), dated 04/26/2007. 

Incident: Severe Storms and Inland 

and Coastal Flooding. 

Incident Period: 04/14/2007 through 

04/20/2007. 

Effective Date: 04/30/2007. 

Physical Loan Application Deadline 

Date: 06/25/2007. 

Eidl Loan Application Deadline Date: 

01/28/2008. 

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: The notice 

of the Presidential disaster declaration 

for the State of New Jersey, dated 04/26/ 

2007 is hereby amended to include the 

following areas as adversely affected by 

the disaster: 

Primary Counties: 

Camden, Gloucester, Mercer. 

Contiguous Counties: 

New Jersey, Cumberland, Salem, 

Delaware, New Castle, 

Pennsylvania and Delaware. 

All other information in the original 

declaration remains unchanged. 


sroberts on PROD1PC70 with NOTICES