Federal Register / Vol. 72, No. 95 / Thursday, May 17, 2007 / Notices 27871 

23 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Effective February 16, 2007, the iShares MSCI 

Index Funds for EAFE, Emerging Markets, Pacific 

ex-Japan, and South Africa transferred their primary 

listing to the NYSE and are no longer listed on 

Amex. See Supplement dated February 16, 2007 to 

the Prospectus dated January 1, 2007 for the iShares 

MSCI Series, and Supplement dated February 16, 

2007 to the Prospectus dated December 1, 2006 for 

the iShares Goldman Sachs Series and the iShares 

MSCI EAFE Series. 

4The Funds (with the exception of the MSCI 

EAFE and S&P Europe 350 Funds) were formerly 

known as World Equity Benchmark Shares or 

WEBS. An initial series of WEBS, including the 

iShares MSCI Australia, Germany, Hong Kong, 

Malaysia, Mexico, Singapore, and United Kingdom 

Index Funds were initially approved for listing and 

trading on Amex in 1996. See Securities Exchange 

Act Release No. 36947 (March 8, 1996), 61 FR 

10606 (March 14, 1996) (SR–Amex–95–43). 

Additional WEBS series were approved for listing 

and trading in 2000, including iShares MSCI Brazil, 

iShares MSCI Taiwan, iShares MSCI South Africa 

and iShares MSCI South Korea. See Securities 

Exchange Act Release No. 42748 (May 2, 2000), 65 

FR 30155 (May 10, 2000) (SR–Amex–98–49). 

iShares MSCI EAFE and iShares S&P Europe 350, 

issued by iShares Trust, were approved for Amex 

listing and trading in, respectively, in 2001. See 

Securities Exchange Release No. 44700 (August 14, 

2001), 66 FR 43927 (August 21, 2001) (SR–Amex–

2001–34); Securities Exchange Act Release No. 

42786 (May 15, 2000), 65 FR 33586 (May 24, 2000) 

(SR–Amex–99–49) (collectively, ‘‘Listing Approval 

Orders’’). 

5See, e.g., Securities Exchange Act Release No. 

50142 (August 3, 2004), 69 FR 48539 (August 10, 

2004) (SR–NYSE–2004–27) (approving trading of 

the Shares pursuant to UTP). 

6Much of the information in this filing was taken 

from the Prospectuses and Statements of Additional 

Information of iShares, Inc. dated January 1, 2007, 

the Prospectus of iShares S&P Europe 350, dated 

August 1, 2006, the Prospectus of iShares Trust 

MSCI EAFE, dated December 1, 2006, and the Web 

sites of Amex (http://www.amex.com), the NYSE 

(http://www.nyse.com), and iShares (http:// 

www.ishares.com). Fund information relating to net 

asset value (‘‘NAV’’), returns, dividends, 

component stock holdings, and the like is updated 

on a daily basis on the Web sites. 

44) be and it hereby is, approved on an 

accelerated basis. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.23

J. Lynn Taylor, 

Assistant Secretary. 

[FR Doc. E7–9464 Filed 5–16–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55736; File No. SR–CBOE–

2007–37] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Order Granting Accelerated Approval 

of Proposed Rule Change as Modified 

by Amendment No. 1 to Trade the 

iShares MSCI Index Funds and the 

S&P Europe 350 Index Fund Pursuant 

to UTP 

May 10, 2007. 

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

Securities Exchange Act of 1934 

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

notice is hereby given that on April 20, 

2007, the Chicago Board Options 

Exchange, Incorporated (the ‘‘Exchange’’

or ‘‘CBOE’’), 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. 

On May 7, 2007, the Exchange filed 

Amendment No. 1 to the proposed rule 

change. This notice and order provides 

notice of the proposed rule change, as 

amended, and approves the proposal on 

an accelerated basis. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Chicago Board Options Exchange, 

Incorporated proposes to trade on its 

subsidiary, the CBOE Stock Exchange 

(‘‘CBSX’’), shares of 15 international 

exchange-traded funds (‘‘ETFs’’ or 

‘‘Funds’’) pursuant to unlisted trading 

privileges (‘‘UTP’’). The text of the 

proposed rule change is available on the 

Exchange’s Web site (http:// 

www.cboe.org/Legal), 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 purpose of the proposed rule 

change is to trade on CBSX shares of 15 

international ETFs (the ‘‘Shares’’) 

pursuant to UTP. These Funds are: 

• iShares MSCI Australia Index Fund 

• iShares MSCI Brazil Index Fund 

• iShares MSCI EAFE Index Fund 

• iShares MSCI Emerging Markets Index 

Fund 

• iShares MSCI Germany Index Fund 

• iShares MSCI Hong Kong Index Fund 

• iShares MSCI Malaysia Index Fund 

• iShares MSCI Mexico Index Fund 

• iShares MSCI Pacific ex-Japan Index 

Fund 

• iShares MSCI Singapore Index Fund 

• iShares MSCI South Africa Index 

Fund 

• iShares MSCI South Korea Index 

Fund 

• iShares MSCI Taiwan Index Fund 

• iShares MSCI United Kingdom Index 

Fund 

• iShares S&P Europe 350 Index Fund 

The Exchange deems the Shares to be 

equity securities, thus rendering trading 

in the Shares subject to existing CBSX 

rules governing the trading of equity 

securities. 

a. Description of the Funds 

The following funds are listed on the 

American Stock Exchange (‘‘Amex’’): 

• iShares MSCI Australia Index Fund 

• iShares MSCI Brazil Index Fund 

• iShares MSCI Germany Index Fund 

• iShares MSCI Hong Kong Index Fund 

• iShares MSCI Malaysia Index Fund 

• iShares MSCI Mexico Index Fund 

• iShares MSCI Singapore Index Fund 

• iShares MSCI South Korea Index 

Fund 

• iShares MSCI Taiwan Index Fund 

• iShares MSCI United Kingdom Index 

Fund 

• iShares S&P Europe 350 Index Fund 

The following funds are listed on the 

New York Stock Exchange (‘‘NYSE’’):3

• iShares MSCI EAFE Index Fund 

• iShares MSCI Emerging Markets Index 

Fund 

• iShares MSCI Pacific ex-Japan Index 

Fund 

• iShares MSCI South Africa Index 

Fund 

In addition to being listed on the 

Amex or NYSE, the Shares 4 are traded 

on those and other securities exchanges 

and in the over-the-counter market.5

The information below is intended to 

provide a description of how the Shares 

were created and are traded.6

The Shares are issued by iShares, Inc., 

except for iShares MSCI EAFE and S&P 

Europe 350, which are issued by iShares 

Trust. iShares, Inc. and iShares Trust 

are open-ended management investment 

companies. Each Fund seeks investment 

results that correspond generally to the 

price and yield performance, before fees 

and expenses, of the applicable 


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7The Commission issued an order (‘‘Order’’) 

granting the Funds an exemption from Section 

24(d) of the Investment Company Act of 1940. See, 

e.g., Investment Company Act Release No. 25623 

(June 25, 2002). Any Product Description used in 

reliance on the Section 24(d) exemptive order will 

comply with all representations made and all 

conditions contained in the Application for the 

Order. 

underlying index. The Funds utilize 

representative sampling to invest in a 

representative sample of securities in 

the applicable underlying index. 

Barclays Global Fund Advisors 

(‘‘BGFA’’), a subsidiary of Barclays 

Global Investors, N.A. (‘‘BGI’’), is the 

investment advisor for each Fund. BGI 

is a wholly owned indirect subsidiary of 

Barclays Bank PLC of the United 

Kingdom. BGFA and its affiliates are not 

affiliated with the index providers 

(MSCI and Standard & Poor’s). Investors 

Bank and Trust Company serves as 

administrator, custodian, and transfer 

agent for the Funds, and SEI 

Investments Distribution Co. is 

distributor for the Funds. The 

distributor is not affiliated with BGFA. 

b. MSCI and S&P Indexes 

The MSCI Indexes are calculated by 

MSCI for each trading day in the 

applicable foreign exchange markets 

based on official closing prices in such 

exchange markets. For each trading day, 

MSCI publicly disseminates the MSCI 

Index values for the previous day’s 

close. The S&P Europe 350 Index is 

calculated by Standard & Poor’s 

(‘‘S&P’’), and is publicly disseminated 

by S&P for the previous day’s close. The 

indexes are reported periodically in 

major financial publications, and the 

intra-day values of the Indexes, 

disseminated every 15 seconds 

throughout the trading day, are available 

through vendors of financial 

information as further described in the 

Listing Approval Orders. 

c. Tracking Error 

The Funds have chosen to pursue a 

representative sampling strategy that, by 

its very nature, entails some risk of 

tracking error. (It should also be noted 

that Fund expenses, the timing of cash 

flows, and other factors all contribute to 

tracking error.) The Web site for the 

Funds, http://www.iShares.com, 

contains detailed information on the 

performance and tracking error for each 

Fund. 

d. Availability of Information Regarding 

Funds 

The Web site for the Funds (http:// 

www.iShares.com) contains the prior 

business day’s NAV and the reported 

closing price, and a calculation of the 

premium or discount of such price 

against NAV; and data in chart format 

displaying the frequency distribution of 

discounts and premiums of the daily 

closing price against the NAV. 

The intra-day values of the indexes 

will be disseminated every 15 seconds 

throughout the trading day by 

organizations authorized by the index 

providers and are available through 

major financial information vendors. 

The intraday indicative value (‘‘IIV’’) 

of each Fund will be disseminated every 

15 seconds throughout the trading day 

by the national securities exchange on 

which the Fund is listed or by other 

information providers or market data 

vendors. The IIV likely will not reflect 

the value of all securities included in 

the applicable indexes. In addition, the 

IIV will not necessarily reflect the 

precise composition of the current 

portfolio of securities held by the Funds 

at a particular moment. The IIV 

disseminated throughout the trading 

day should not be viewed as a real-time 

update of the NAV of the Funds, which 

is calculated only once a day. It is 

expected, however, that during the 

trading day the IIV will closely 

approximate the value per share of the 

portfolio of securities for the Funds, 

except under unusual circumstances. 

For the iShares MSCI Australia, Hong 

Kong, Malaysia, Pacific ex-Japan, 

Singapore, South Korea, and Taiwan 

Funds, there is no overlap in trading 

hours between the foreign and U.S. 

markets. Therefore, for each of these 

Funds, the IIV calculator utilizes closing 

prices (denominated in the applicable 

foreign currency) in the principal 

foreign market for securities in the 

applicable Fund’s portfolio and converts 

the price to U.S. dollars. This IIV is 

updated every 15 seconds, during the 

trading hours of the national securities 

exchange on which the Fund is listed, 

to reflect changes in currency exchange 

rates between the U.S. dollar and the 

applicable foreign currency. The IIV 

also includes the estimated cash 

component for each Fund. 

For the iShares MSCI Brazil, EAFE, 

Germany, Mexico, South Africa, and 

United Kingdom Funds, and the S&P 

Europe 350 Fund, there is an overlap in 

trading hours between the foreign and 

U.S. markets. Therefore, the IIV 

calculator updates the applicable IIV 

every 15 seconds to reflect price 

changes in the applicable foreign market 

or markets and converts such prices into 

U.S. dollars based on the currency 

exchange rate. When a relevant foreign 

market is closed but the U.S. markets 

are open, the IIV is updated every 15 

seconds to reflect changes in currency 

exchange rates after the foreign market 

closes. The IIV also includes the 

applicable cash component for each 

Fund. 

e. Information Circular 

In connection with the trading of the 

Shares, the Exchange will inform 

members and member organizations in 

an Information Circular of certain 

characteristics of certain Funds, as 

discussed below. The circular will 

discuss the special characteristics and 

risks of trading this type of security. 

Specifically, the circular, among other 

things, will discuss what the Funds are, 

how they are created and redeemed, the 

requirement that members and member 

firms deliver a prospectus or Product 

Description to investors purchasing 

Shares prior to or concurrently with the 

confirmation of a transaction, applicable 

Exchange rules, dissemination 

information, trading information, and 

the applicability of suitability rules.7

In addition, the circular will note 

Exchange responsibilities, including 

that before an Exchange member, 

member organization, or employee 

thereof recommends a transaction in the 

Shares, a determination must be made 

that the recommendation is in 

compliance with all applicable 

Exchange and federal rules and 

regulations. The circular will also 

discuss exemptive, no-action, and 

interpretive relief granted by the 

Commission from Section 11(d)(1) and 

certain rules under the Act, including 

Rule 10a–1, 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 NAV for the iShares MSCI 

Malaysia, South Korea, and Taiwan 

Index Funds will be calculated every 

day that the listing exchange is open for 

trading, normally as of 10 a.m. Central 

Time. This is in contrast to the other 

Funds, for which the NAV is normally 

calculated at 3 p.m. Central Time. 

f. Other Issues 

i. Surveillance Procedures 

The Exchange intends to utilize its 

existing surveillance procedures 

applicable to equity securities to 

monitor trading in the Shares. The 

Exchange represents that these 

procedures are adequate to monitor 

Exchange trading of the Shares. 

ii. Trading Hours 

The trading hours for the Shares on 

CBSX will be 8:15 a.m. until 3:15 p.m. 

Central Time (unless the value of a 

Fund is not being calculated and widely 

disseminated before 8:30 a.m., in which 

case trading in that Fund will begin at 

8:30 a.m.; and unless the original listing 


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Federal Register / Vol. 72, No. 95 / Thursday, May 17, 2007 / Notices 27873 

8 15 U.S.C. 78(f)(b)(5). 

9 17 CFR 240.12f–5. 

10See e-mail dated May 8, 2007 from Brian Jung, 

Law Clerk, CBOE, to Geoffrey Pemble, Special 

Counsel, Division of Market Regulation, 

Commission. 

11 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). 

12 15 U.S.C. 78f(b)(5). 

13 15 U.S.C. 78l(f). 

14Section 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. 

15See supra notes 3–5. 

16 17 CFR 240.12f–5. 

exchange closes trading of a Fund at 3 

p.m., in which case trading in that Fund 

will end at 3 p.m.). 

iii. Trading Halts 

The Exchange proposes to modify its 

Rule 52.3 to provide that (i) From 8:15 

to 8:30 Central Time, if a security 

described in Rules 54.1, 54.2, and 54.3 

(an ‘‘ETF’’) (the Shares are among the 

securities covered by this provision) 

begins trading on CBSX and 

subsequently a temporary interruption 

occurs in the calculation or wide 

dissemination of the IIV or the value of 

the underlying index, as applicable, to 

such ETF, by a major market data 

vendor, CBSX may continue to trade the 

ETF for the remainder of the 8:15 to 8:30 

session; and, (ii) during normal market 

hours, if a temporary interruption 

occurs in the calculation or wide 

dissemination of the applicable IIV or 

value of the underlying index by a major 

market data vendor and the listing 

market halts trading in the ETF, CBSX, 

upon notification by the listing market 

of such halt due to such temporary 

interruption, also shall immediately halt 

trading in the ETF on CBSX. 

2. Statutory Basis 

CBOE believes that the proposed rule 

change is consistent with the Act and 

the rules and regulations thereunder 

applicable to a national securities 

exchange. Specifically, the Exchange 

believes the proposed rule change is 

consistent with the Section 6(b)(5) 8

requirements that an exchange have 

rules that are designed 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 to 

protect investors and the public interest. 

In addition, CBOE believes that the 

proposal is consistent with Rule 12f–5 

under the Act 9 because it deems each 

Share to be an equity security, thus 

rendering trading in each Fund subject 

to the Exchange’s existing rules 

governing the trading of equity 

securities.10

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

CBOE does not believe that the 

proposed rule change will impose any 

burden on competition 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 neither solicited nor 

received comments on the proposal. 

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–CBOE–2007–37 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–CBOE–2007–37. 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–CBOE–2007–37 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, as 

amended, is consistent with the 

requirements of the Act and the rules 

and regulations thereunder applicable to 

a national securities exchange.11 In 

particular, the Commission finds that 

the proposed rule change is consistent 

with Section 6(b)(5) of the Act,12 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,13 which permits 

an exchange to trade, pursuant to UTP, 

a security that is listed and registered on 

another exchange.14 The Commission 

notes that it previously approved the 

listing and trading of each of the Shares 

on either Amex or the NYSE.15 The 

Commission also finds that the proposal 

is consistent with Rule 12f–5 under the 

Act,16 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 


pwalker on PROD1PC71 with NOTICES
27874 Federal Register / Vol. 72, No. 95 / Thursday, May 17, 2007 / Notices 

17 15 U.S.C. 78k–1(a)(1)(C)(iii). 

18See e.g., NYSE Arca Equities Rule 7.34; 

Securities Exchange Act Release No. 54997 

(December 21, 2006), 71 FR 78501 (December 29, 

2006). 

19 19 15 U.S.C. 78s(b)(2). 

20 20 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 36947 

(March 8, 1996), 61 FR 10606 (March 14, 1996). 

4See Securities Exchange Act Release No. 53230 

(February 6, 2006), 71 FR 7594 (February 13, 2006) 

(approving SR–PCX–2005–116, which permitted 

the listing and trading on the Pacific Exchange of 

the Shares, as well as shares of other iShares MSCI 

international index funds). 

11A(a)(1)(C)(iii) of the Act,17 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. In 

addition, the IIV of each Fund is 

disseminated every 15 seconds 

throughout the trading day by the 

national securities exchange on which 

the Fund is listed or by other 

information providers or market data 

vendors. 

Furthermore, the Commission 

believes that the proposal is reasonably 

designed to preclude trading of the 

Shares when transparency is impaired. 

New CBOE Rule 52.3 sets forth trading 

halt procedures when CBOE trades an 

ETF pursuant to UTP. Under this rule, 

if the listing market halts trading when 

the IIV is not being calculated or 

disseminated, CBOE also would halt 

trading in the Shares. This rule is 

substantially similar to those recently 

adopted by other exchanges and found 

by the Commission to be consistent with 

the Act.18

The Commission notes that, if the 

Shares should be delisted by the listing 

market, the Exchange would no longer 

have authority to trade the Shares 

pursuant to this order. 

In support of this proposal, the 

Exchange has made the following 

representations: 

1. The Exchange’s surveillance 

procedures are adequate to properly 

monitor Exchange trading of the Shares 

and to deter and detect violations of 

Exchange rules. 

2. Prior to the commencement of 

trading, the Exchange would inform its 

members and member organizations in 

an Information Circular of the special 

characteristics and risks associated with 

trading the Shares. 

3. The Information Circular would 

include the requirement that members 

and member firms deliver a prospectus 

to investors purchasing newly issued 

Shares prior to or concurrently with the 

confirmation of a transaction. 

This approval order is conditioned on 

the Exchange’s adherence to these 

representations. 

The Commission finds good cause for 

approving this proposal before the 

thirtieth day after the publication of 

notice thereof in the Federal Register. 

As noted previously, the Commission 

previously found that the listing and 

trading of the Shares on either Amex or 

the NYSE is consistent with the Act. 

The Commission presently is not aware 

of any regulatory issue that should 

cause it to revisit that finding or would 

preclude the trading of the Shares on 

the Exchange pursuant to UTP. 

Therefore, accelerating approval of this 

proposal should benefit investors by 

creating, without undue delay, 

additional competition in the market for 

the Shares. 

V. Conclusion 

It is therefore ordered, pursuant to 

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

proposed rule change (SR–CBOE–2007–

37), as modified by Amendment No. 1 

thereto, be and it hereby is, approved on 

an accelerated basis. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.20

J. Lynn Taylor, 

Assistant Secretary. 

[FR Doc. E7–9465 Filed 5–16–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55747; File No. SR–CBOE–

2007–48] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Order Granting Accelerated Approval 

of Proposed Rule Change to Trade the 

iShares MSCI Canada Index Fund 

Pursuant to UTP 

May 10, 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 10, 

2007, the Chicago Board Options 

Exchange, Incorporated (‘‘Exchange’’ or 

‘‘CBOE’’), 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 

The Exchange proposes to trade, on 

the CBOE Stock Exchange (‘‘CBSX’’), 

shares (‘‘Shares’’) of iShares MSCI 

Canada Index Fund (‘‘Fund’’) pursuant 

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

The text of the proposed rule change is 

available on the Exchange’s Web site 

(http://www.cboe.org/Legal), 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 is proposing to trade 

Shares of the Fund pursuant to UTP. 

The Fund seeks to provide investment 

results that correspond generally to the 

price and yield performance, before fees 

and expenses, of publicly traded 

securities in the Canadian market, as 

measured by the MSCI Canada Index 

(‘‘Index’’). 

The Commission previously approved 

the original listing and trading of the 

Shares on the American Stock Exchange 

(‘‘Amex’’).3 Subsequently, the 

Commission approved the listing and 

trading of the Shares on the Pacific 

Exchange, which is now known as 

NYSE Arca (‘‘NYSE Arca’’).4

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 


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