Federal Register / Vol. 72, No. 98 / Tuesday, May 22, 2007 / Notices 28733 

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

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

9 15 U.S.C. 78s(b)(3)(A). 

10 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. 

11For 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). 12See note 5, supra. 

13 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

and the rules and regulations under the 

Act applicable to a national securities 

exchange and, in particular, the 

requirements of Section 6(b) of the Act.7

Specifically, the Exchange believes the 

proposed rule change is consistent with 

the Section 6(b)(5) requirements that the 

rules of an exchange be designed to 

promote just and equitable principles of 

trade, to prevent fraudulent and 

manipulative acts and, in general, to 

protect investors and the public 

interest.8

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. 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 9 and Rule 19b–

4(f)(6) thereunder.10

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.11 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 CBOE may 

immediately begin using the holdback 

timer in an effort to mitigate quotes on 

the CBOE. The Commission does not 

believe that implementation of the 

holdback timer raises any novel issues 

of regulatory concern as the 

Commission previously approved the 

use of substantively similar quote 

mitigation strategies by the ISE and 

Amex.12

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission may summarily abrogate 

such rule change if it appears to the 

Commission that such action is 

necessary or appropriate in the public 

interest, for the protection of investors, 

or otherwise in furtherance of the 

purposes of the Act. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

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–2007–45 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–CBOE–2007–45. 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 CBOE. 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–2007–45 and should 

be submitted on or before June 12, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.13

J. Lynn Taylor, 

Assistant Secretary. 

[FR Doc. E7–9807 Filed 5–21–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55767; File No. SR–

NASDAQ–2007–051] 

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 

Commodity Index Tracking Fund 

Pursuant to Unlisted Trading 

Privileges 

May 15, 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 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 Commodity Index Tracking Fund 

(the ‘‘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. 


jlentini on PROD1PC65 with NOTICES
28734 Federal Register / Vol. 72, No. 98 / Tuesday, May 22, 2007 / Notices 

3Securities Exchange Act Release No. 55386 

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

NASDAQ–2007–016). 

4See Securities Exchange Act Release No. 53105 

(January 11, 2006), 71 FR 3129 (January 19, 2006) 

(SR–Amex–2005–059) (the ‘‘Amex Order’’). 

5An ‘‘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 or indirect participant; and 

(iii) has in effect a valid Participant Agreement with 

the Fund issuer. 

6The Managing Owner is DB Commodity 

Services LLC, a Delaware limited liability company 

that is registered with the Commodity Futures 

Trading Commission as a commodity pool operator 

and commodity trading advisor. The Managing 

Owner is an affiliate of Deutsche Bank AG, the 

sponsor of the Fund and Master Fund. The 

Managing Owner serves as the commodity pool 

operator and commodity trading advisor of the 

Fund and the Master Fund and manages and 

controls all aspects of the business of the Funds. 

7Nasdaq provides a hyperlink from its Web site 

at http://www.nasdaq.com to the Fund’s Web site 

at http://www.dbcfund.db.com and the DB London 

Web site at https://index.db.com. The Fund also 

maintains a Web site at http:// 

www.powershares.com, to which Nasdaq also 

provides a link from its Web site. 

8According to the Amex Order, DB London, the 

sponsor of the Index, has in place procedures to 

prevent the improper sharing of information 

between different affiliates and departments. 

Specifically, an information barrier exists between 

the personnel within DB London that calculate and 

reconstitute the Index and other personnel of DB 

London, including but not limited to the Managing 

Owner, sales and trading, external or internal fund 

managers, and bank personnel who are involved in 

hedging the bank’s exposure to instruments linked 

to the Index, in order to prevent the improper 

sharing of information relating to the recomposition 

of the Index. The Index is not calculated by a 

broker-dealer. 

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

The Shares of the Fund represent 

beneficial ownership interests in the 

Fund’s net assets, consisting solely of 

the common units of beneficial interests 

of the DB Commodity Index Tracking 

Master Fund (‘‘Master Fund’’). Each 

Share of the Fund correlates with a 

Master Fund share issued by the Master 

Fund and held by the Fund. The 

investment objective of each of the Fund 

and the Master Fund is to reflect the 

performance of the Deutsche Bank 

Liquid Commodity IndexTM (‘‘DBLCI’’

or ‘‘Index’’), less the expenses of the 

operations of the Fund and the Master 

Fund. The Fund pursues its investment 

objective by investing substantially all 

of its assets in the Master Fund. The 

Fund holds no investment assets other 

than Master Fund shares. The Master 

Fund pursues its investment objective 

by investing primarily in a portfolio of 

futures contracts in the commodities 

comprising the Index, which are crude 

oil, heating oil, aluminum, gold, corn, 

and wheat (‘‘Index commodities’’). The 

Master Fund also holds cash and U.S. 

Treasury securities for deposit with 

futures commission merchants for 

margin purposes, and other high-creditquality short-term fixed income 

securities. 

A description of the DBLCI, 

commodity futures contracts and related 

options, operation of the Fund, and the 

Shares is set forth in the Amex Order. 

To summarize, an issuance of Shares is 

made only in a basket 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’’) 5 with the Fund and its 

Managing Owner,6 at the net asset value 

(‘‘NAV’’) per Share determined shortly 

after 4 p.m. Eastern Time (‘‘ET’’) or the 

closing of the last to close of the futures 

exchanges on which the Index 

commodities are traded, whichever is 

later, on the business day on which an 

order to purchase the Shares in one or 

more Baskets is received in proper form. 

Shortly after 4 p.m. ET each business 

day, The Bank of New York 

(‘‘Administrator’’) determines the NAV 

for the Fund and Master Fund, utilizing 

the current day’s settlement value of the 

particular commodity futures contracts 

in the Master Fund’s portfolio and the 

value of the Master Fund’s cash and 

high-credit-quality, short-term fixed 

income securities. However, if a futures 

contract on a trading day cannot be 

liquidated due to the operation of daily 

limits or other rules of an exchange 

upon which such futures contract is 

traded, the settlement price on the most 

recent trading day on which the futures 

contract could have been liquidated 

would be used in determining the 

Fund’s and the Master Fund’s NAV. 

Accordingly, for both U.S. and non-U.S. 

futures contracts, the Administrator 

typically uses that day’s futures 

settlement price for determining the 

NAV. The calculation methodology for 

the NAV is described in more detail in 

the Amex Order. 

A Basket is issued in exchange for an 

amount of cash equal to the NAV per 

Share times 200,000 Shares (‘‘Basket 

Amount’’) on the purchase order date. 

The Basket Amount and NAV are 

usually determined on each business 

day by the Administrator shortly after 4 

p.m. ET. Baskets are issued as of 12 

noon ET, on the business day 

immediately following the purchase 

order date (T+1) at the NAV per Share 

on the purchase order date if the 

required payment has been timely 

received. An Authorized Participant 

that wishes to purchase a Basket must 

transfer the Basket Amount to the Fund 

in exchange for a Basket. A Basket is 

then separable upon issuance into the 

Shares that will be traded on Nasdaq on 

a UTP basis. 

The Shares are not individually 

redeemable but are redeemable only in 

Baskets. To redeem Shares, 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 would receive the 

Basket Amount in exchange for each 

Basket surrendered. The operation of 

the Fund and creation and redemption 

process is described in more detail in 

the Amex Order. 

The value of the Index is calculated 

and published by its sponsor, Deutsche 

Bank AG London (‘‘DB London’’), at 

least every 15 seconds from 9:30 a.m. to 

4:15 p.m. ET through Bloomberg, 

Reuters, and other market data vendors. 

In addition, the Index value is available 

on DB London’s Web site at https:// 

index.db.com and on the Fund’s Web 

site at http://www.dbcfund.db.com on a 

20-minute delayed basis.7 The closing 

Index level is similarly provided by DB 

London and the Fund. In addition, any 

adjustments or changes to the Index are 

also provided by DB London and the 

Fund on their respective Web sites.8

The closing prices and daily 

settlement prices for the futures 

contracts held by the Master Fund are 


jlentini on PROD1PC65 with NOTICES
Federal Register / Vol. 72, No. 98 / Tuesday, May 22, 2007 / Notices 28735 

9NASD surveils trading pursuant to a regulatory 

services agreement. Nasdaq is responsible for 

NASD’s performance under this regulatory services 

agreement. 

10 15 U.S.C. 78f(b). 

11 15 U.S.C. 78f(b)(5). 

12 17 CFR 240.12f–5. 

publicly available on the Web sites of 

the futures exchanges trading the 

particular contracts. The particular 

futures exchange for each futures 

contract with Web site information is as 

follows: (i) Aluminum—London Metal 

Exchange (‘‘LME’’) at http:// 

www.lme.com; (ii) corn and wheat—

Board of Trade of the City of Chicago, 

Inc. (‘‘CBOT’’) at http://www.cbot.com; 

and (iii) crude oil, heating oil, and 

gold—New York Mercantile Exchange 

(‘‘NYMEX’’) at http://www.nymex.com. 

DB London’s Web site at https:// 

index.db.com also contains futures 

contract pricing information. 

The Web site for the Fund at http:// 

www.powershares.com contains the 

following information: (a) The prior 

business day’s NAV and the reported 

closing price; (b) the mid-point of the 

bid-ask price in relation to the NAV as 

of the time the NAV is calculated (‘‘BidAsk Price’’); (c) calculation of the 

premium or discount of such price 

against such NAV; (d) data in chart form 

displaying the frequency distribution of 

discounts and premiums of the Bid-Ask 

Price against the NAV, within 

appropriate ranges for each of the four 

previous calendar quarters; (e) the 

prospectus; and (f) other applicable 

quantitative information. Quotations for 

and last-sale information regarding the 

Shares are disseminated via the CTA/ 

CQS. 

As described above, the NAV for the 

Fund is calculated and disseminated 

daily. Amex also disseminates, from 

9:30 a.m. to 4:15 p.m. ET, for the Fund 

on a daily basis by means of CTA/CQ 

High Speed Lines information with 

respect to the Indicative Fund Value 

(‘‘IFV’’), recent NAV, and Shares 

outstanding. Amex also makes available 

on its Web site daily trading volume, 

closing prices, and the NAV. 

In addition to calculating the NAV of 

the Fund on a daily basis, the 

Administrator causes to be made 

available on a daily basis the amount of 

cash to be deposited in connection with 

the issuance of the Shares in Basket 

Aggregations. Other investors can 

request such information directly from 

the Administrator. 

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. 

ET. 

Nasdaq would 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 would 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.9 Nasdaq 

is able to obtain information regarding 

trading in the Shares and the underlying 

futures contracts 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 CBOT, and 

Nasdaq has information-sharing 

agreements in place with NYMEX and 

LME. 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 10 in general and Section 

6(b)(5) of the Act 11 in particular, in that 

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 12

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–2007–051 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–NASDAQ–2007–051. 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 


jlentini on PROD1PC65 with NOTICES
28736 Federal Register / Vol. 72, No. 98 / Tuesday, May 22, 2007 / Notices 

13 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). 

14 15 U.S.C. 78f(b)(5). 

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

16Section 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. 

17See supra note 4 (approving listing and trading 

of Shares on Amex). See also Securities Exchange 

Act Release No. 53736 (April 27, 2006) 71 FR 26582 

(May 5, 2006) (approving UTP trading of Shares on 

Pacific Exchange, Inc. n/k/a NYSE Arca). 

18 17 CFR 240.12f–5. 

19 15 U.S.C. 78k–1(a)(1)(C)(iii). 

20See supra note 3. 

21 15 U.S.C. 78s(b)(2). 

22 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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–2007–051 and 

should be submitted on or before June 

12, 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.13 In particular, the 

Commission finds that the proposed 

rule change is consistent with Section 

6(b)(5) of the Act,14 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,15 which permits 

an exchange to trade, pursuant to UTP, 

a security that is listed and registered on 

another exchange.16 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.17 The 

Commission also finds that the proposal 

is consistent with Rule 12f–5 under the 

Act,18 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,19 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. 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.20 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,21 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.22

Jill M. Peterson, 

Assistant Secretary. 

[FR Doc. E7–9738 Filed 5–21–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55760; File No. SR–

NASDAQ–2007–046] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Order Granting Accelerated 

Approval of Proposed Rule Change to 

Trade Three iPath Exchange-Traded 

Notes Pursuant to Unlisted Trading 

Privileges 

May 15, 2007. 

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

Securities Exchange Act of 1934 

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

notice is hereby given that on May 1, 

2007, The 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 order provides notice of the 


jlentini on PROD1PC65 with NOTICES