Federal Register / Vol. 72, No. 95 / Thursday, May 17, 2007 / Notices 27885 

6 15 U.S.C. 78f(b)(5). 

7 15 U.S.C. 78s(b)(3)(A). 

8 17 CFR 240.19b–4(f)(6). As required by Rule 

19b-4(f)(6)(iii) under the Act, the Exchange also 

provided with the Commission with written notice 

of its intent to file the proposed rule change, along 

with a brief description and text of the proposed 

rule change, at least five business days prior to the 

date of the proposed rule change. 

9For purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

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

10For purposes of calculating the 60-day 

abrogation period, the Commission considers the 

proposed rule change to have been filed on May 8, 

2007, the date the ISE filed Amendment No. 1. 11 17 CFR 200.30–3(a)(12). 

during the last ten (10) years so that it 

is consistent with NASD Rule 1120, 

‘‘Continuing Education Requirements.’’

The Exchange proposes to amend ISE 

Rule 624, ‘‘Brokers’ Blanket Bonds,’’ by 

changing the number of days to make 

necessary adjustments to the minimum 

coverage from thirty (30) days to sixty 

(60) days following the anniversary to 

mirror the requirements in NASD Rule 

3020, ‘‘Fidelity Bonds.’’

The Exchange proposes to amend ISE 

Rule 626, ‘‘Telephone Solicitation,’’ by 

changing the number of months from 

twelve (12) to eighteen (18) that an 

associated person must be servicing an 

account to establish such account as a 

‘‘customer account’’ for the purpose of 

being exempt from the call restrictions 

set forth in the rule. This amendment 

will mirror the requirements set forth in 

NASD Rule 2212, ‘‘Telemarketing.’’

The Exchange proposes to amend ISE 

Rule 1407, ‘‘Short Sales in Nasdaq 

National Market Securities,’’ to change 

the cross-reference in the rule from 

NASD 3350 to NASD Rule 5100 to 

reflect the recent numbering change. 

2. Statutory Basis 

The basis under the Act for this 

proposed rule change is found in 

Section 6(b)(5).6 Specifically, the 

Exchange believes the proposed rule 

change is consistent with Section 6(b)(5) 

requirements that the rules of an 

exchange be designed to promote just 

and equitable principles of trade, serve 

to remove impediments to and perfect 

the mechanism for a free and open 

market and a national market system, 

and, in general, to protect investors and 

the public interest. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The proposed rule change does not 

impose any burden on competition that 

is not necessary or appropriate in 

furtherance of the purposes of the Act. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange has not solicited, and 

does not intend to solicit, comments on 

this proposed rule change. The 

Exchange has not received any 

unsolicited written comments from 

members or other interested parties. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the proposed rule change: (1) 

Does not significantly affect the 

protection of investors or the public 

interest; (2) does not impose any 

significant burden on competition; and 

(3) does not become operative for 30 

days after the date of the filing, or such 

shorter time as the Commission may 

designate if consistent with the 

protection of investors and the public 

interest, the proposed rule change has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 7 and Rule 19b–

4(f)(6) thereunder.8

The Exchange has asked the 

Commission to waive the 30-day 

operative delay and allow the proposed 

rule change to become operative 

immediately. The Commission hereby 

grants that request.9 The Commission 

believes that it is consistent with the 

protection of investors and the public 

interest to waive the 30-day operative 

delay so that the ISE may immediately 

conform its rules to the NASD’s rules to 

facilitate the effectiveness of the 17d–2 

Agreement recently approved by the 

Commission. 

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.10

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

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

Number SR–ISE–2007–29 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 

Number SR–ISE–2007–29. This file 

number should be included on the 

subject line if e-mail is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

Internet Web site (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for inspection and copying in 

the Commission’s Public Reference 

Room. Copies of such filing also will be 

available for inspection and copying at 

the principal office of the ISE. All 

comments received will be posted 

without change; the Commission does 

not edit personal identifying 

information from submissions. You 

should submit only information that 

you wish to make available publicly. All 

submissions should refer to File 

Number SR–ISE–2007–29 and should be 

submitted on or before June 7, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.11

Jill M. Peterson, 

Assistant Secretary. 

[FR Doc. E7–9500 Filed 5–16–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55739; File No. SR–

NASDAQ–2007–049] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Order Granting Accelerated 

Approval of Proposed Rule Change To 

Trade Shares of the PowerShares DB 

G10 Currency Harvest Fund Pursuant 

to Unlisted Trading Privileges 

May 10, 2007. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 


pwalker on PROD1PC71 with NOTICES
27886 Federal Register / Vol. 72, No. 95 / Thursday, May 17, 2007 / Notices 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 55386 

(March 2, 2007), 72 FR 10801 (March 9, 2007) (SR–

NASDAQ–2007–016) (the ‘‘Pilot Order’’). 

4See Securities Exchange Act Release No. 54450 

(September 14, 2006), 71 FR 55230 (September 21, 

2006) (the ‘‘Amex Order’’). 

5The Managing Owner is registered as a 

commodity pool operator (‘‘CPO’’) and commodity 

trading advisor (‘‘CTA’’) with the Commodity 

Futures Trading Commission (‘‘CFTC’’) and is a 

member of the National Futures Association 

(‘‘NFA’’). The Managing Owner serves as the CPO 

and CTA of the Fund and the Master Fund. 

6The G10 currencies are the U.S. Dollar, the Euro, 

the Japanese Yen, the Canadian Dollar, the Swiss 

Franc, the British Pound, the Australian Dollar, the 

New Zealand Dollar, the Norwegian Krone, and the 

Swedish Krona (the ‘‘Eligible Index Currencies’’). 

7The Index Sponsor reviews and re-weights the 

Index on a quarterly basis. 

8An ‘‘Authorized Participant’’ is a person, who 

at the time of submitting to the trustee an order to 

create or redeem one or more Baskets: (i) Is a 

registered broker-dealer; (ii) is a Depository Trust 

Company Participant; and (iii) has in effect a valid 

Participant Agreement. 

9At or about 4 p.m. ET each business day, the 

Administrator determines the Basket Amount for 

orders placed by Authorized Participants received 

before 1 p.m. ET that day. Thus, although 

Authorized Participants place orders to purchase 

Shares throughout the trading day until 1 p.m. ET, 

the actual Basket Amount is determined at 4 p.m. 

ET or thereafter. On each business day, the 

Administrator makes available, immediately prior 

to 9:30 a.m. ET, the most recent Basket Amount for 

the creation of a Basket. According to the Amex 

Order, Amex disseminates every 15 seconds 

throughout the trading day, via the facilities of the 

Consolidated Tape (‘‘CT’’), an amount representing, 

on a per-Share basis, the current value of the Basket 

Amount. 

(‘‘Act’’) 1 and Rule 19b–4 thereunder,2

notice is hereby given that on May 7, 

2007, The NASDAQ Stock Market LLC 

(‘‘Nasdaq’’ or ‘‘Exchange’’) 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. 

This notice and order provides notice of 

the proposed rule change and approves 

the proposal on an accelerated basis. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

Nasdaq proposes to trade, pursuant to 

unlisted trading privileged (‘‘UTP’’), 

shares (‘‘Shares’’) of the PowerShares 

DB G10 Currency Harvest Fund (the 

‘‘Trust’’ or ‘‘Fund’’). 

The text of the proposed rule change 

is available from Nasdaq’s Web site at 

nasdaq.complinet.com, at Nasdaq’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 

Nasdaq is proposing to trade the 

Shares on a UTP basis. The Shares are 

currently trading on Nasdaq on a threemonth pilot basis.3 Approval of this 

filing will allow the Shares to continue 

to trade after the expiration of the pilot. 

The Commission previously approved 

the listing and trading of the Shares on 

the American Stock Exchange 

(‘‘Amex’’).4 Nasdaq deems the Shares to 

be equity securities, thus rendering 

trading in the Shares subject to Nasdaq’s 

existing rules governing the trading of 

equity securities, including Nasdaq Rule 

4630. The trading hours for the Shares 

on Nasdaq will be 9:30 a.m. to 4:15 p.m. 

Eastern Time (‘‘ET’’). 

The Shares represent beneficial 

ownership interests in the Fund’s net 

assets, consisting solely of the common 

units of beneficial interests of the DB 

G10 Currency Harvest Master Fund (the 

‘‘Master Fund’’). The Master Fund is a 

statutory trust created under Delaware 

law whose investment portfolio consists 

primarily of futures contracts on the 

currencies comprising the Deutsche 

Bank G10 Currency Future Harvest 

IndexTM (the ‘‘DBCHI’’ or ‘‘Index’’) and 

includes cash and U.S. Treasury 

securities for margin purposes, and 

other high-credit-quality short-term 

fixed income securities. Both the Fund 

and the Master Fund are commodity 

pools operated by DB Commodity 

Services LLC (the ‘‘Managing Owner’’).5

The investment objective of the Fund 

and the Master Fund is to reflect the 

performance of the Index, over time, 

less the expenses of the operation of the 

Fund and the Master Fund. The Fund 

pursues its investment objective by 

investing substantially all of its assets in 

the Master Fund. Each Share correlates 

with a Master Fund share issued by the 

Master Fund and held by the Fund. The 

Master Fund pursues its investment 

objective by taking futures positions in 

currencies represented in the Index and 

adjusts its holdings quarterly as the 

Index is adjusted. The Master Fund also 

holds cash and U.S. Treasury securities 

for deposit with futures commission 

merchants as margin, and other highcredit-quality short-term fixed income 

securities. The Fund is not managed on 

a discretionary basis but instead seeks to 

track the Index pursuant to established 

rules and procedures. 

The Index, at any time, is comprised 

of six currencies from The Group of Ten 

(‘‘G10’’) countries,6 futures contracts on 

which are traded on the Chicago 

Mercantile Exchange (‘‘CME’’). The 

notional amounts of each currency 

included in the Index (‘‘Index 

Currency’’) are based on the Index 

closing level as of the period in which 

the Index is re-weighted.7 The Index 

closing level reflects an arithmetic 

weighted average of the change in the 

futures positions on the Index 

Currencies’ exchange rates against the 

U.S. dollar since March 12, 1993. On 

such date, the Index closing level was 

$100. The sponsor of the Index is 

Deutsche Bank AG London (‘‘DB 

London’’ or the ‘‘Index Sponsor’’). 

Issuances of Shares are made only in 

one or more blocks of 200,000 Shares 

(‘‘Basket Aggregation’’ or ‘‘Basket’’) or 

multiples thereof. The Fund issues and 

redeems the Shares on a continuous 

basis, by or through participants that 

have entered into participant 

agreements (each, an ‘‘Authorized 

Participant’’) 8 with the Managing 

Owner. 

A Basket will be issued in exchange 

for an amount of cash equal to the 

Fund’s net asset value (‘‘NAV’’) per 

Share times 200,000 Shares (‘‘Basket 

Amount’’). The Basket Amount will be 

determined on each business day by 

The Bank of New York 

(‘‘Administrator’’).9 An Authorized 

Participant that wishes to purchase a 

Basket must transfer the Basket Amount 

to the Administrator (the ‘‘Cash Deposit 

Amount’’). A Basket is then separable 

upon issuance into the Shares that can 

be traded on Nasdaq on a UTP basis. 

The Shares are not individually 

redeemable may be redeemed only in 

Baskets. To redeem, an Authorized 

Participant is required to accumulate 

enough Shares to constitute a Basket 

(i.e., 200,000 shares). An Authorized 

Participant that wishes to redeem a 

Basket will receive cash in exchange for 

each Basket surrendered in an amount 

equal to the NAV per Basket (the ‘‘Cash 

Redemption Amount’’). Upon the 

surrender of the Shares and payment of 

applicable redemption transaction fee, 

taxes, or charges, the Administrator will 


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Federal Register / Vol. 72, No. 95 / Thursday, May 17, 2007 / Notices 27887 

10The NAV for the Fund is the total assets of the 

Master Fund less total liabilities of the Master 

Fund. The NAV is calculated by including any 

unrealized profit or loss on futures contracts and 

any other credit or debit accruing to the Master 

Fund but unpaid or not received by the Master 

Fund. The NAV is then used to compute all fees 

(including the management and administrative fees) 

that are calculated from the value of Master Fund 

assets. The Administrator calculates the NAV per 

Share by dividing the NAV by the number of Shares 

outstanding. 

11According to the Amex Order, Amex has 

represented that the NAV for the Fund will be made 

available to all market participants at the same time. 

If the NAV is not disseminated to all market 

participants at the same time, Amex will halt 

trading in the Shares. 

12Such other futures exchanges would be 

required to be members of the Intermarket 

Surveillance Group (‘‘ISG’’) or to have 

comprehensive surveillance sharing agreements 

with Nasdaq. 

13NASD surveils trading pursuant to a regulatory 

services agreement. Nasdaq is responsible for 

NASD’s performance under this regulatory services 

agreement. 

14 15 U.S.C. 78f(b). 

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

16 17 CFR 240.12f–5. 

deliver to the redeeming Authorized 

Participant the Cash Redemption 

Amount. 

After 4 p.m. ET each business day, the 

Administrator determines the NAV 10

for the Fund, utilizing the current 

settlement value of exchange-traded 

futures contracts on the Index 

Currencies, and the Administrator, 

Amex, and Managing Owner will 

disseminate the NAV for the Shares and 

the Basket Amount (for orders placed 

during the day). The Basket Amount 

and the NAV are communicated by the 

Administrator to all Authorized 

Participants via facsimile or e-mail.11

Nasdaq will provide a hyperlink to the 

Fund’s Web site at http:// 

www.dbfunds.db.com from its Web site 

at http://www.nasdaq.com. The Web 

site for the Fund contains quantitative 

information about the Fund and the 

Fund’s prospectus. Quotations for and 

last sale information regarding the 

Shares are disseminated via the CT and 

the Consolidated Quotation Service. 

To provide updated information 

relating to the Fund for use by investors, 

professionals, and persons wishing to 

create or redeem the Shares, Amex 

disseminates through the facilities of the 

CT an updated Indicative Fund Value 

(‘‘IFV’’). The IFV is disseminated on a 

per-Share basis every 15 seconds from 

9:30 a.m. to 4:15 p.m. ET. The IFV is 

calculated based on the cash required 

for creations and redemptions (i.e., NAV 

× 200,000) adjusted to reflect the price 

changes of the Index Currencies through 

investments held by the Master Fund 

(i.e., futures contracts and options on 

futures and/or forwards). 

DB London, as the Index Sponsor, 

publishes the value of the Index at least 

once every 15 seconds throughout each 

trading day on the CT, Bloomberg, and 

Reuters, and on its Web site at http:// 

index.db.com and the Fund’s Web site 

at http://www.dbfunds.db.com. The 

closing Index level is similarly provided 

by DB London and the Fund. In 

addition, any adjustments or changes to 

the Index also are provided by DB 

London and the Fund on their 

respective Web sites. 

The daily settlement prices for the 

foreign currency futures contracts 

comprising the Index and held by the 

Master Fund are publicly available on 

the Internet Web sites of the futures 

exchanges trading the particular 

contracts, as well as automated 

quotation systems, published or other 

public sources, or on-line information 

services such as Bloomberg or Reuters. 

All of the foreign currency futures 

contracts in which the Master Fund 

currently expects to invest are traded on 

the CME, although currency futures 

contracts on the eligible Index 

Currencies also trade on other futures 

exchanges and the Master Fund may 

invest in such contracts.12

Nasdaq will halt trading in the Shares 

under the conditions specified in 

Nasdaq Rules 4120 and 4121. The 

conditions for a halt include a 

regulatory halt by the listing market. 

UTP trading in the Shares will also be 

governed by provisions of Nasdaq Rule 

4120 relating to temporary interruptions 

in the calculation or wide dissemination 

of the IFV or the value of the Index. 

Additionally, Nasdaq may cease trading 

the Shares if other unusual conditions 

or circumstances exist which, in the 

opinion of Nasdaq, make further 

dealings on Nasdaq detrimental to the 

maintenance of a fair and orderly 

market. Nasdaq will also follow any 

procedures with respect to trading halts 

as set forth in Nasdaq Rule 4120(c). 

Finally, Nasdaq will stop trading the 

Shares if the listing market delists them. 

Nasdaq believes that its surveillance 

procedures are adequate to address any 

concerns about the trading of the Shares 

on Nasdaq. Trading of the Shares 

through Nasdaq facilities is currently 

subject to NASD’s surveillance 

procedures for equity securities in 

general and ETFs in particular.13

Nasdaq is able to obtain information 

regarding trading in the Shares and the 

underlying currency futures through its 

members in connection with the 

proprietary or customer trades that such 

members effect on any relevant market. 

In addition, Nasdaq may obtain trading 

information via the Intermarket 

Surveillance Group (‘‘ISG’’) from other 

exchanges who are members or affiliates 

of the ISG, including the CME. Nasdaq 

has issued an Information Circular to 

inform its members of the special 

characteristics and risks associated with 

trading the Shares. 

2. Statutory Basis 

The Exchange believes that the 

proposal is consistent with Section 6(b) 

of the Act 14 in general and Section 

6(b)(5) of the Act 15 in particular, in that 

it is designed to prevent fraudulent and 

manipulative acts and practices, to 

promote just and equitable principles of 

trade, remove impediments to a free and 

open market and a national market 

system, and, in general, to protect 

investors and the public interest. In 

addition, Nasdaq believes that the 

proposal is consistent with Rule 12f–5 

under the Act 16 because it deems the 

Shares to be an equity securities, thus 

rendering trading in the Shares subject 

to Nasdaq’s existing 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 

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. 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–NASDAQ–2007–049 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. 


pwalker on PROD1PC71 with NOTICES
27888 Federal Register / Vol. 72, No. 95 / Thursday, May 17, 2007 / Notices 

17 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). 

18 15 U.S.C. 78f(b)(5). 

19 15 U.S.C. 78l(f). 

20Section 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. 

21See supra note 4 (approving listing and trading 

of Shares on Amex). See also Securities Exchange 

Act Release No. 54569 (October 4, 2006) 71 FR 

60594 (October 13, 2006) (approving UTP trading of 

Shares on NYSE Arca). 

22 17 CFR 240.12f–5. 

23 15 U.S.C. 78k–1(a)(1)(C)(iii). 

24See supra note 3. 

25 15 U.S.C. 78s(b)(2). 

26 17 CFR 200.30–3(a)(12). 

All submissions should refer to File 

Number SR–NASDAQ–2007–049. 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–NASDAQ–2007–049 and 

should be submitted on or before June 

7, 2007. 

IV. Commission’s Findings and Order 

Granting Accelerated Approval of the 

Proposed Rule Change 

After careful review, 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.17 In particular, the 

Commission finds that the proposed 

rule change is consistent with Section 

6(b)(5) of the Act,18 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 should 

benefit investors by increasing 

competition among markets that trade 

the Shares. 

In addition, the Commission finds 

that the proposal is consistent with 

Section 12(f) of the Act,19 which permits 

an exchange to trade, pursuant to UTP, 

a security that is listed and registered on 

another exchange.20 The Commission 

notes that it previously approved the 

listing and trading of the Shares on 

Amex and the trading of the Shares on 

NYSE Arca pursuant to UTP.21 The 

Commission also finds that the proposal 

is consistent with Rule 12f–5 under the 

Act,22 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 equity securities, 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,23 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 

facilities of the CTA and the 

Consolidated Quotation System. 

Furthermore, the IFV, updated to reflect 

changes in currency exchange rates, is 

calculated by Amex and published via 

the facilities of the Consolidated Tape 

Association on a 15-second delayed 

basis throughout the trading hours for 

the Shares. In addition, if the listing 

market halts trading when the IFV is not 

being calculated or disseminated, the 

Exchange would halt trading in the 

Shares. 

The Commission notes that, if the 

Shares should be delisted by the 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 represented that its 

surveillance procedures are adequate to 

properly monitor Exchange trading of 

the Shares. This approval order is 

conditioned on the Exchange’s 

adherence to this representation. 

In addition, the Commission recently 

approved the trading of the Shares on 

the Exchange pursuant to UTP for a 

pilot period of three months.24 In the 

Pilot Order, the Commission noted that 

exchanges that trade commodity-related 

securities generally have in place 

surveillance arrangements with markets 

that trade the underlying securities. In 

its proposal to trade the Shares for a 

pilot period, the Exchange represented 

that it was in the process of completing 

these surveillance arrangements and 

expected to do so ‘‘in the near future.’’

The Exchange recently provided the 

Commission with evidence that it has 

completed these surveillance 

arrangements. 

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 Amex and the 

trading of the Shares on NYSE Arca 

pursuant to UTP are consistent with the 

Act. The Commission presently is not 

aware of any regulatory issue that 

should cause it to revisit those findings 

or would preclude the continued 

trading of the Shares on the Exchange 

pursuant to UTP. Therefore, accelerating 

approval of this proposal should benefit 

investors by continuing the additional 

competition in the market for the 

Shares. 

V. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,25 that the 

proposed rule change (SR–NASDAQ–

2007–049) be, and it hereby is, approved 

on an accelerated basis. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.26

J. Lynn Taylor, 

Assistant Secretary. 

[FR Doc. E7–9466 Filed 5–16–07; 8:45 am] 

BILLING CODE 8010–01–P 


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