Federal Register / Vol. 72, No. 99 / Wednesday, May 23, 2007 / Notices 29015 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 55661 

(April 24, 2007), 72 FR 23862 (‘‘Notice’’). 

RELATED GENERIC COMMUNICATIONS—Continued 

Document No. Document name ADAMS 

accession No. 

IN 06–21 ...................... Operating Experience Regarding Entrainment of Air Into Emergency Core Cooling and Containment 

Spray Systems.

ML062570468 

Backfit Discussion 

Under the provisions of Section 182a 

of the Atomic Energy Act of 1954, as 

amended, this GL requests a review and 

appropriate resulting actions for the 

purpose of assuring compliance with 

applicable existing requirements. No 

backfit is either intended or approved 

by the issuance of this GL. Therefore, 

the NRC staff has not performed a 

backfit analysis. 

Federal Register Notification 

To be done after the public comment 

period. 

Congressional Review Act 

In accordance with the Congressional 

Review Act, the NRC has determined 

that this GL is not a major rule and the 

Office of Information and Regulatory 

Affairs of the Office of Management and 

Budget has confirmed this 

determination. 

Paperwork Reduction Act Statement 

This GL contains an information 

collection that is subject to the 

Paperwork Reduction Act of 1995 (44 

U.S.C. 3501 et seq.). The Office of 

Management and Budget approved this 

information collection under clearance 

number 3150–0011. 

The burden to the public for this 

mandatory information collection is 

estimated to average 300 hours per 

response, including the time for 

reviewing instructions, searching 

existing data sources, gathering and 

maintaining the data needed, and 

completing and reviewing the 

information collection. The NRC is 

seeking public comment on the 

potential impact of the information 

collection contained in the GL and on 

the following issues: 

1. Is the proposed information 

collection necessary for the proper 

performance of the functions of the 

NRC, including whether the information 

will have practical utility? 

2. Is the estimate of burden accurate? 

3. Is there a way to enhance the 

quality, utility, and clarity of the 

information collected? 

4. How can the burden of the 

information collection be minimized, 

including the use of automated 

collection techniques? 

Send comments on any aspect of this 

information collection, including 

suggestions for reducing the burden, to 

the Records and FOIA/Privacy Services 

Branch (T5–F52), U.S. Nuclear 

Regulatory Commission, Washington, 

DC 20555–0001, or by Internet 

electronic mail to infocollects@nrc.gov; 

and to the Desk Officer, Office of 

Information and Regulatory Affairs, 

NEOB–10202 (3150–0011), Office of 

Management and Budget, Washington, 

DC 20503. 

Public Protection Notification: The 

NRC may not conduct or sponsor, and 

a person is not required to respond to, 

an information collection unless the 

requesting document displays a 

currently valid OMB control number. 

Contact: Please direct any questions 

about this matter to the technical 

contact or the Lead Project Manager 

listed below, or to the appropriate Office 

of Nuclear Reactor Regulation (NRR) 

project manager. 

Michael J. Case, Director, Division of 

Policy and Rulemaking, Office of 

Nuclear Reactor Regulation. 

Technical Contact: Warren C. Lyon, 

NRR, 301–415–2897, e-mail: 

wcl@nrc.gov. 

Lead Project Manager: David P. 

Beaulieu, NRR, 301–415–3243, e-mail: 

dpb@nrc.gov. 

Note: NRC generic communications may be 

found on the NRC public Web site, http:// 

www.nrc.gov, under Electronic Reading 

Room/Document Collections. 

End of Draft Generic Letter 

Documents may be examined, and/or 

copied for a fee, at the NRC’s Public 

Document Room at One White Flint 

North, 11555 Rockville Pike (first floor), 

Rockville, Maryland. Publicly available 

records will be accessible electronically 

from the Agencywide Documents 

Access and Management System 

(ADAMS) Public Electronic Reading 

Room on the Internet at the NRC Web 

site, http://www.nrc.gov/NRC/ADAMS/ 

index.html. If you do not have access to 

ADAMS or if you have problems in 

accessing the documents in ADAMS, 

contact the NRC Public Document Room 

(PDR) reference staff at 1–800–397–4209 

or 301–415–4737 or by e-mail to 

pdr@nrc.gov. 

Dated at Rockville, Maryland, this 16th day 

of May 2007. 

For the Nuclear Regulatory Commission. 

Jennifer Golder, Acting Director, Division of 

Policy and Rulemaking, Office of Nuclear 

Reactor Regulation. 

[FR Doc. 07–2557 Filed 5–22–07; 8:45 am] 

BILLING CODE 7590–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55776; File No. SR–Amex–

2007–29] 

Self-Regulatory Organizations; 

American Stock Exchange LLC; Order 

Granting Accelerated Approval of a 

Proposed Rule Change, as Modified by 

Amendment No. 1 Thereto, Relating to 

the Listing and Trading of Notes 

Linked to the Performance of the Dow 

Jones-AIG Commodity Index Total 

Return 

May 17, 2007. 

I. Introduction 

On March 2, 2007, the American 

Stock Exchange LLC (‘‘Amex’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’) a proposed rule change 

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

Securities Exchange Act of 1934 

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

On April 5, 2007, Amex filed 

Amendment No. 1 to the proposed rule 

change. The proposed rule change, as 

amended, was published for comment 

in the Federal Register on May 1, 2007 

for a 15-day comment period.3 The 

Commission received no comments on 

the proposal. This order approves the 

proposed rule change, as modified by 

Amendment No. 1, on an accelerated 

basis. 

II. Description of the Proposal 

Under Section 107A of the Amex 

Company Guide (‘‘Company Guide’’), 

the Exchange may approve for listing 

and trading securities which cannot be 

readily categorized under the listing 

criteria for common and preferred 

stocks, bonds, debentures, or warrants, 

including index and currency warrants. 

Amex proposes to list for trading under 


pwalker on PROD1PC71 with NOTICES
29016 Federal Register / Vol. 72, No. 99 / Wednesday, May 23, 2007 / Notices 

4Lehman Brothers Holdings Inc. (‘‘Lehman’’), 

Dow Jones & Company, Inc. (‘‘Dow Jones’’) and AIG 

International, Inc. (‘‘AIGI’’) have entered into a nonexclusive license agreement providing for the use 

of the Index by Lehman and certain affiliates and 

subsidiaries thereof in connection with certain 

securities including the Notes. 

5See Notice at 23862 (providing a detailed 

discussion of the calculation methodology of the 

‘‘Daily Value’’ per $1000 Note as of the Valuation 

Date). Terms not otherwise defined herein shall 

have the same meaning as the meaning given in the 

Notice, supra note 3. 

6AIG–FP is not a broker-dealer or futures 

commission merchant; however, AIG–FP may have 

such affiliates. Therefore, AIG–FP (1) maintains and 

agrees to continue to maintain procedures 

reasonably designed to prevent the use and 

dissemination by relevant employees of AIG–FP, in 

violation of applicable laws, rules and regulations, 

of material non-public information relating to 

changes in the composition or method of 

computation or calculation of the Index or the Dow 

Jones-AIG Commodity Index and (2) agrees to 

periodically check the application of such 

procedures as they relate to personnel of AIG–FP 

responsible for such changes. Dow Jones has 

informed the Exchange that it does not have any 

affiliates engaged in the securities or commodities 

trading businesses and, as such, does not believe 

that such firewall procedures are necessary in its 

case. In addition, the Supervisory and Advisory 

Committees (as defined herein) are subject to 

written policies that acknowledge their obligations 

with respect to material non-public information. 

7Lehman has informed the Exchange that 

Lehman is not affiliated with any of the Sponsors. 

E-mail from Jeffrey P. Burns, Associate General 

Counsel, Amex, to Edward Y. Cho, Special Counsel, 

Division of Market Regulation, Commission, dated 

May 14, 2007. 

8Any disseminated Index value after 3 p.m. ET 

is static due to the close of auction trading of 

various commodities futures contracts. 

9On February 21, 2007, Dow Jones announced a 

change to the Dow Jones-AIG Commodity Index 

Oversight Committee structure providing for a twotier committee structure consisting of a 

‘‘Supervisory Committee’’ and an ‘‘Advisory 

Committee.’’ The Supervisory Committee makes all 

final decisions relating to the Index with the advice 

and recommendation from the Advisory Committee. 

Section 107A of the Company Guide 

floating rate notes (the ‘‘Notes’’) linked 

to the performance of the Dow JonesAIG Commodity Index Total Return (the 

‘‘Index’’).4

The Exchange states that the Notes 

will conform to the initial listing 

guidelines under Section 107A of the 

Company Guide and the continued 

listing guidelines under Sections 1001–

1003 of the Company Guide. The Notes 

are senior, non-convertible debt 

securities of Lehman, have a term of 

thirteen months, and will provide for 

participation in the positive 

performance of the Index during their 

term. The Notes are cash-settled in 

United States (‘‘U.S.’’) dollars and do 

not give the holder any right or other 

ownership interest in the Index or 

commodities comprising the Index. The 

Notes are designed for investors who 

desire to participate in, or gain exposure 

to, an index composed of a basket of 

actively-traded commodities, receive 

monthly coupon interest payments, and 

are willing to forego principal 

protection on the Notes during their 

term. Lehman will issue the Notes in 

denominations of whole units, with 

each unit representing a single Note. 

The original public offering price will 

be $1,000 per Note. 

Unless the Notes have been redeemed 

earlier, at maturity, a holder would 

receive per each $1,000 Note, a cash 

amount equal to the Daily Value per 

$1,000 Note as of the Valuation Date5, 

plus accrued and unpaid coupon 

payments, to, but excluding, the stated 

maturity date. Lehman may redeem the 

Notes early if, on any Index Business 

Day prior to the Valuation Date, the 

Daily Value per $1,000 Note falls below 

a certain pre-determined amount. This 

day is known as the ‘‘Early Redemption 

Determination Date.’’ This predetermined amount will be determined 

at the time of issuance of the Notes. In 

the event of redemption, Lehman will 

pay an amount per $1,000 Note equal to 

the Daily Value per $1,000 Note 

calculated as of the first Index Business 

Day following the Early Redemption 

Determination Date, plus accrued and 

unpaid coupon payments to, but 

excluding, the Early Redemption 

Determination Date. 

If an event of default occurs and the 

maturity of the Notes are accelerated, 

Lehman will pay holders an amount 

equal to the amount that would have 

been payable at maturity, calculated as 

though the date of acceleration was the 

stated maturity date, and the date three 

Index Business Days before the date of 

acceleration was the Valuation Date. If 

a bankruptcy proceeding is commenced, 

the claims of a holder of a Note may be 

limited. 

Index Description 

The Index, developed by AIGI, is a 

proprietary index that is calculated by 

Dow Jones, AIGI, and AIG Financial 

Products Corp. (‘‘AIG–FP’’ and, together 

with AIGI and Dow Jones, the 

‘‘Sponsors’’) and published by Dow 

Jones.6 The methodology for 

determining the composition and 

weighting of the Index and for 

calculating its level is subject to 

modification by the Sponsors at any 

time.7 Dow Jones disseminates the 

Index level at least every 15 seconds 

from 8 a.m. to 3 p.m. Eastern Time 

(‘‘ET’’),8 and publishes a daily Index 

level at approximately 4 p.m. ET on 

each DJ–AIG Business Day on its Web 

site at www.djindexes.com and on 

Bloomberg’s Web site. 

The Index is re-weighted and rebalanced each year in January on a 

price-percentage basis. The annual 

weightings for the Index are determined 

each year in June or July by AIG–FP 

under the supervision of the Index 

Supervisory Committee,9 announced 

after approval by such Committee and 

implemented the following January. 

The Index is designed to track rolling 

futures positions in a diversified basket 

of 19 exchange-traded futures contracts 

on physical commodities. The 19 

physical commodities selected for 2007 

are aluminum, coffee, copper, corn, 

cotton, crude oil, gold, heating oil, lean 

hogs, live cattle, natural gas, nickel, 

silver, soybeans, soybean oil, sugar, 

unleaded gasoline, wheat, and zinc. 

Unlike equities, which typically entitle 

the holder to a continuing stake in a 

corporation, commodity futures 

contracts normally specify a certain date 

for the delivery of the underlying 

physical commodity. The Index tracks 

what is known as a rolling futures 

position, which is a position where, on 

a periodic basis, futures contracts on 

physical commodities specifying 

delivery on a nearby date must be sold 

and futures contracts on physical 

commodities that have not yet reached 

the delivery period must be purchased. 

An investor with a rolling futures 

position is able to avoid delivering 

underlying physical commodities while 

maintaining exposure to those 

commodities. The rollover for each 

Index component occurs over a period 

of five DJ–AIG Business Days each 

month according to a pre-determined 

schedule. 

The 19 physical commodities selected 

for inclusion in the Index for 2007, and 

their respective weightings, are as 

follows: 

Commodity Weighting 

(percent) 

Crude oil ............................... 12.723561 

Natural gas ........................... 12.546191 

Soybeans .............................. 7.747790 

Gold ...................................... 6.825901 

Aluminum .............................. 6.803820 

Copper .................................. 6.187758 

Live cattle ............................. 6.141286 

Corn ...................................... 5.627129 

Wheat ................................... 4.715495 

Unleaded gasoline ................ 3.940958 

Heating oil ............................. 3.789289 

Cotton ................................... 3.146094 

Sugar .................................... 3.122271 

Coffee ................................... 3.021718 

Lean hogs ............................. 3.013524 

Soybean oil ........................... 2.845646 

Zinc ....................................... 2.798069 

Nickel .................................... 2.715318 

Silver ..................................... 2.288179 


pwalker on PROD1PC71 with NOTICES
Federal Register / Vol. 72, No. 99 / Wednesday, May 23, 2007 / Notices 29017 

10The Supervisory Committee may exclude any 

otherwise eligible contract from the Index if it 

determines that it has inadequate liquidity. The 

Index currently includes contracts traded on LME, 

which is located in London. During the hours when 

the LME is closed, Dow Jones uses the last price and 

the settlement price once they are available in order 

to publish the Index value through the end of the 

trading day. The Index value does not reflect any 

after-hours or overnight trading in contracts traded 

on LME. 

11NYBOT recently was purchased by the 

Intercontinental Exchange (‘‘ICE’’) and is now a 

regulated subsidiary of ICE. 

12See Notice at 23864 (providing a detailed 

discussion of how the commodity liquidity 

percentage and the commodity production 

percentage are determined and adjusted). 

13See id. (describing the mathematical process for 

the calculation of the Index value). 

14See Amex Rule 462. 

15See 17 CFR 240.10A–3(c)(1). 

Commodity Weighting 

(percent) 

Total (rounded) .............. 100.000000 

Futures contracts on the Index are 

currently listed for trading on the 

Chicago Board of Trade (‘‘CBOT’’). The 

Index commodities currently trade on 

U.S. exchanges, with the exception of 

aluminum, nickel and zinc, which trade 

on the London Metal Exchange 

(‘‘LME’’). 

Designated Contracts for Each Index 

Commodity 

A futures contract, known as a 

‘‘Designated Contract,’’ is selected by 

the Supervisory Committee for each 

Index commodity.10 With the exception 

of several LME contracts, the 

Supervisory Committee selects the 

futures contract that is traded in the 

U.S. and denominated in U.S. dollars. If 

more than one of those contracts exists, 

the Supervisory Committee will select 

the most actively traded contract. Data 

concerning this Designated Contract 

will be used to calculate the Index 

value. If a Designated Contract is 

terminated or replaced, a comparable 

futures contract would be selected, if 

available, to replace that Designated 

Contract. 

The Designated Contracts for the 

Index commodities included in the 

Index for 2007 are traded on LME, 

CBOT, the New York Board of Trade 

(‘‘NYBOT’’),11 the Chicago Mercantile 

Exchange, Inc. (‘‘CME’’), and the New 

York Mercantile Exchange (‘‘NYMEX’’). 

The particular commodities futures 

exchanges for each commodity futures 

contract are as follows: (1) Aluminum, 

nickel, and zinc—LME at www.lme.com; 

(2) corn, soybeans, soybean oil, and 

wheat—CBOT at www.cbot.com; (3) live 

cattle and lean hogs—CME at 

www.cme.com; (4) coffee, cotton, and 

sugar—NYBOT at www.nybot.com; and 

(5) copper, crude oil, gold, heating oil, 

natural gas, silver, and unleaded 

gasoline—NYMEX at www.nymex.com. 

In addition, various market data vendors 

and financial news publications publish 

futures prices and data. The Exchange 

represents that futures quotes and last 

sale information for the commodities 

underlying the Index are widely 

disseminated through a variety of major 

market data vendors worldwide, 

including Bloomberg and Reuters. 

Determination of Relative Weightings 

The relative weightings of the 

component commodities included in 

the Index are determined annually 

according to both liquidity and dollaradjusted production data in 2/3 and 1/ 

3 shares, respectively. Each June, for 

each commodity designated for 

potential inclusion in the Index, 

liquidity is measured by the commodity 

liquidity percentage and production by 

the commodity production 

percentage.12

The Index is designed to provide 

diversified exposure to commodities as 

an asset class. To ensure that no single 

commodity or commodity sector 

dominates the Index, the following 

diversification rules are applied to the 

annual re-weighting and re-balancing of 

the Index as of January of the applicable 

year: 

• No related group of commodities 

designated as a commodity group (e.g., 

energy, precious metals, livestock, or 

grains) may constitute more than 33% of 

the Index. 

• No single commodity may 

constitute more than 15% of the Index. 

• No single commodity, together with 

its derivatives (e.g., crude oil, together 

with heating oil and unleaded gasoline), 

may constitute more than 25% of the 

Index. 

Following the annual re-weighting 

and re-balancing of the Index in 

January, the percentage of any single 

commodity or group of commodities at 

any time prior to the next re-weighting 

or re-balancing will fluctuate and may 

exceed or be less than the percentages 

set forth above. The Index is then 

calculated by the Sponsors by applying 

the impact of the changes to the futures 

prices of commodities included in the 

Index (based on their relative 

weightings).13

Index Calculation Disruption Events 

From time to time, disruptions can 

occur in trading futures contracts on 

various commodity exchanges. The 

daily calculation of the Index may be 

adjusted in the event that the Sponsors 

determine that any of the following 

Index calculation disruption events 

exists: 

• The termination or suspension of, 

or material limitation or disruption in, 

the trading of any futures contract used 

in the calculation of the Index on that 

day; 

• The settlement price of any futures 

contract used in the calculation of the 

Index reflects the maximum permitted 

price change from the previous day’s 

settlement price; 

• The failure of an exchange to 

publish settlement prices for any futures 

contract used in the calculation of the 

Index; or 

• With respect to any futures contract 

used in the calculation of the Index that 

trades on LME, a business day on which 

LME is not open for trading. 

The Exchange submits that for a 

temporary disruption in the trading of a 

futures contract, AIGI will typically use 

the prior day’s price for an Index 

commodity or commodities. In 

exceptional cases, AIGI may employ a 

‘‘fair value’’ price. However, the 

Exchange represents that if the use of a 

prior day’s price or ‘‘fair value’’ pricing 

for an Index commodity or commodities 

continues for more than one day, the 

Exchange will commence delisting the 

Notes. 

Exchange Rules Applicable to the Notes 

Amex represents that the Notes will 

trade on the Exchange subject to 

existing Amex trading rules applicable 

to the Notes including, among others, 

rules governing priority, parity, and 

precedence of orders, specialist 

responsibilities, account opening, and 

customer suitability requirements. In 

addition, the Notes will be subject to the 

equity margin rules of the Exchange.14

Criteria for Initial and Continued Listing 

The Exchange represents that it 

prohibits the initial and/or continued 

listing of any security that is not in 

compliance with Rule 10A–3 under the 

Act.15 The Exchange further represents 

that the Notes will meet the listing 

requirements set forth in Section 107A 

of the Company Guide as well as the 

continued listing requirements set forth 

in Sections 1001 through 1003 of the 

Company Guide. The Exchange also has 

a general policy that prohibits the 

distribution of material, non-public 

information by its employees. 

Trading Halts 

The Exchange states that it will halt 

trading in the Notes if the circuit 

breaker parameters of Amex Rule 117 

have been reached. In exercising its 

discretion to halt or suspend trading in 


pwalker on PROD1PC71 with NOTICES
29018 Federal Register / Vol. 72, No. 99 / Wednesday, May 23, 2007 / Notices 

16With respect to suitability recommendations 

and risks, the Exchange will require members, 

member organizations, and employees thereof 

recommending a transaction in the Notes: (1) to 

determine that such transaction is suitable for the 

customer, and (2) to have a reasonable basis for 

believing that the customer can evaluate the special 

characteristics of, and is able to bear the financial 

risks of, such transaction. 

17See Securities Exchange Act Release No. 54790 

(November 20, 2006), 71 FR 68645 (November 27, 

2006) (SR-Amex-2006–01). 

18 In approving this proposed rule change, the 

Commission notes that it has considered the 

proposed rule’s impact on efficiency, competition, 

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

19 15 U.S.C. 78f(b)(5). 

20See, e.g., 71 FR 68645, supra note 17 

(approving the listing and trading of principal 

protected notes linked to the Dow Jones-AIG 

ExEnergy Sub-Index, which is comprised of 

components that make up a subset of the Index); 

Securities Exchange Act Release No. 53876 (May 

25, 2006), 71 FR 32158 (June 2, 2006) (SR–NYSE–

2006–16) (approving the listing and trading of 

index-linked securities of Barclays Bank PLC linked 

to the performance of the Index). 

21See e.g., Securities Exchange Act Release No. 

55029 (December 29, 2006), 72 FR 806 (January 8, 

2007) (SR-Amex-2006–76) (DB Multi-Sector 

Commodity Trust); Securities Exchange Act Release 

No. 53105 (January 11, 2006), 71 FR 3129 (January 

19, 2006) (SR-Amex-2005–059) (DB Commodity 

Index Tracking Fund). 

22 15 U.S.C. 78k–1(a)(1)(C)(iii). 

the Notes, the Exchange may consider 

factors such as those set forth in Amex 

Rule 918C(b), in addition to other 

factors that may be relevant. In 

particular, if the Index value is not 

being disseminated as required, the 

Exchange may halt trading during the 

day in which the interruption to the 

dissemination of the Index value occurs. 

If the interruption to the dissemination 

of the Index value persists past the 

trading day on which it occurred, the 

Exchange will halt trading no later than 

the beginning of the trading day 

following the interruption. 

Surveillance 

The Exchange represents that its 

surveillance procedures are adequate to 

properly monitor the trading of the 

Notes. Specifically, Amex will rely on 

its existing surveillance procedures 

governing index-linked securities which 

are similar to its surveillance 

procedures governing exchange-traded 

funds and trust-issued receipts. With 

regard to the Index components, the 

Exchange currently has in place a 

comprehensive surveillance sharing 

arrangement with ICE, LME, and 

NYMEX, for the purpose of providing 

information in connection with trading 

in or related to futures contracts 

comprising the Index and traded on 

their respective exchanges. The 

Exchange also notes that CBOT, CME, 

and NYBOT are members of the 

Intermarket Surveillance Group (‘‘ISG’’). 

As a result, the Exchange asserts that it 

can obtain all necessary market 

surveillance information, including 

customer identity information, from 

CBOT, CME, ICE, LME, NYBOT, and 

NYMEX, if necessary, due to regulatory 

concerns that may arise in connection 

with the commodity futures contracts 

underlying the Index. 

Information Circular 

The Exchange will, prior to trading 

the Notes, distribute an Information 

Circular to its membership providing 

guidance with regard to member firm 

compliance responsibilities (including 

suitability recommendations) 16 when 

handling transactions in the Notes and 

highlighting the special risks and 

characteristics of the Notes. In addition, 

the Circular will identify and disclose 

the applicable trading rules governing 

the trading of the Notes on the Exchange 

and that Lehman will deliver a 

prospectus in connection with the 

initial sales of the Notes and will 

reference that the Commission has no 

jurisdiction over the trading of the 

physical commodities or the futures 

contracts or on the commodities upon 

which the value of the Notes is based. 

The Exchange submits that it recently 

received approval to list and trade notes 

linked to the performance of the Dow 

Jones-AIG ExEnergy Sub-Index, which 

is a subset of the Index.17

III. Discussion and Commission’s 

Findings 

After careful consideration, 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.18 In particular, the 

Commission finds that the proposal is 

consistent with the requirements of 

Section 6(b)(5) of the Act,19 which 

requires, among other things, that the 

Exchange’s rules be 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, in 

general, to protect investors and the 

public interest. The Commission notes 

that the Notes are substantially similar 

to other notes, the listing and trading of 

which have previously been approved 

by the Commission.20 The Commission 

also notes that it has approved indexes 

comprised of similar commodity pools 

underlying other derivative products 

that are currently listed and traded on 

the Exchange.21

The Commission further believes that 

the proposal is consistent with Section 

11A(a)(1)(C)(iii) of the Exchange Act,22

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. Dow Jones will disseminate 

the Index value at least every 15 

seconds from 8 a.m. to 3 p.m. ET and 

publish a daily Index level at 

approximately 4 p.m. ET on each DJ–

AIG Business Day on its Internet Web 

site and on Bloomberg’s Web site. In 

addition, daily settlement prices, futures 

quotes, and last-sale information for the 

designated contracts on the 

commodities underlying the Index are 

available through a variety of major 

market data vendors and financial news 

publications, including Bloomberg and 

Reuters. 

In support of this proposal, the 

Exchange has made the following 

representations: 

(1) Amex would rely on its existing 

surveillance procedures, which are 

adequate to properly monitor the 

trading of the Notes. Specifically, the 

Exchange will rely on its surveillance 

procedures applicable to index-linked 

securities, which are similar to the 

surveillance procedures governing 

exchange-traded funds and trust-issued 

receipts. With regard to the Index 

components, Amex has in place a 

comprehensive surveillance sharing 

agreement with ICE, LME, and NYMEX, 

for the purpose of providing and 

obtaining information due to regulatory 

concerns that may arise in connection 

with the trading of the futures contracts 

underlying the Index. In addition, Amex 

states that is able to obtain all such 

necessary market surveillance 

information from CBOT, CME, and 

NYBOT, which are members of ISG. As 

a result, the Exchange can obtain all 

necessary market surveillance 

information due to regulatory concerns 

that may arise in connection with the 

commodity futures contracts underlying 

the Index. 

(2) AIG–FP has in place procedures 

reasonably designed to prevent the 

improper sharing, use, and 

dissemination by relevant employees of 

AIG–FP of material non-public 

information relating to changes in the 

composition or method of computation 

or calculation of the Index and agrees to 

periodically check the application of 

such procedures as they relate to 

personnel of AIG–FP responsible for 

such changes. In addition, the 

Supervisory and Advisory Committees 

are subject to written policies that 

acknowledge their obligations with 


pwalker on PROD1PC71 with NOTICES
Federal Register / Vol. 72, No. 99 / Wednesday, May 23, 2007 / Notices 29019 

23 15 U.S.C. 78s(b)(2). 

24See supra note 20. 

25See id. 

26 15 U.S.C. 78s(b)(2). 

27 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Amendment No. 1 supersedes and replaces the 

original proposal in its entirety. 

4See Proposed Section 4, subparagraph (i), 

Chapter VI of the BOX Rules. 

respect to such material non-public 

information. 

(3) The Exchange will halt trading in 

the Notes if the circuit breaker 

parameters of Amex Rule 117 have been 

reached and, in exercising its discretion 

to halt or suspend trading in the Notes, 

the Exchange may consider factors such 

as those set forth in Amex Rule 918C(b), 

in addition to other factors that may be 

relevant. In particular, if the Index value 

is not being disseminated as required, 

the Exchange may halt trading during 

the day in which the interruption to the 

dissemination of the Index value occurs. 

If the interruption to the dissemination 

of the Index value persists past the 

trading day on which it occurred, the 

Exchange will halt trading no later than 

the beginning of the trading day 

following the interruption. 

(4) Amex will distribute an 

Information Circular to its members 

providing guidance with regard to the 

special characteristics and risks of 

trading this type of security, member 

firm compliance responsibilities, 

including suitability recommendations, 

the specific Amex trading rules 

governing transactions in the Notes, and 

the prospectus delivery requirements 

applicable to the Notes. 

This Order is conditioned on Amex’s 

adherence to the foregoing 

representations. 

The Commission finds good cause to 

approve the proposed rule change, as 

modified by Amendment No. 1 thereto, 

prior to the thirtieth day after 

publication for comment in the Federal 

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

the Act.23 As noted earlier, the Notes are 

substantially similar to other notes, the 

listing and trading of which have 

previously been approved by the 

Commission, and do not appear to 

present any new regulatory concerns.24

In addition, the Commission notes that 

the same Index currently underlies 

other products previously approved for 

listing and trading.25 Accelerating 

approval of this proposed rule change 

would allow the Notes to trade on Amex 

without undue delay and should 

generate additional competition in the 

market for such products. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,26 that the 

proposed rule change (SR–Amex–2007–

29), as modified by Amendment No. 1, 

be, and it hereby is, approved on an 

accelerated basis. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.27

J. Lynn Taylor, 

Assistant Secretary. 

[FR Doc. E7–9854 Filed 5–22–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55774; File No. SR–BSE–

2007–09] 

Self-Regulatory Organizations; Boston 

Stock Exchange, Inc.; Notice of Filing 

of Proposed Rule Change and 

Amendment No. 1 Thereto Relating to 

Appointment of Market Makers 

May 16, 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 February 

20, 2007, the Boston Stock Exchange 

(‘‘BSE’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III below, which Items have been 

substantially prepared by the BSE. On 

May 11, 2007, the Exchange filed with 

the Commission Amendment No. 1.3

The Commission is publishing this 

notice to solicit comments on the 

proposed rule change, as amended, from 

interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend 

Section 4 (Appointment of Market 

Makers) of Chapter VI of the Rules of the 

Boston Options Exchange (‘‘BOX’’). The 

BSE is proposing to amend the BOX 

Rules to grant the authority for the 

Exchange to approve Market Maker 

appointments instead of the Board or a 

committee designated by the Board, as 

the rule currently states. The Exchange 

is also proposing to provide a process 

for those Market Makers who wish to 

withdraw from trading an option issue 

within their appointment. The text of 

the proposed rule change is available on 

the Exchange’s website (http:// 

www.bse.com), at the Exchange’s Office 

of the Secretary and at the Commission. 

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 IV 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 amend 

Section 4 (Appointment of Market 

Makers) of Chapter VI of the BOX Rules 

to grant the authority for the Exchange 

to approve Market Maker appointments 

instead of the Board or committee 

designated by the Board, as the rule 

currently states. The Exchange is also 

proposing to provide a process for those 

Market Makers who wish to withdraw 

from trading an option issue within 

their appointment. 

The proposed change of granting the 

Exchange the authority to approve 

Market Maker appointments instead of 

the Board or a committee designated by 

the Board will help aid in the efficiency 

of BOX’s Market Maker allocation 

process. If approved, this proposed 

change will allow the regulatory staff of 

the Exchange the ability to approve 

Market Maker appointments. The BSE 

regulatory staff is more accessible than 

the Board and this change will help 

with the expediency of the Market 

Marker allocation approval process. 

The Exchange has also proposed to 

add a provision to establish a process 

for those Market Makers who wish to 

withdraw from trading an option issue 

within their appointment.4 A Market 

Maker may withdraw from an 

appointment as long as the Market 

Maker provides BOX with three 

business days written notice of their 

intent to withdraw from an 

appointment. If such written notice is 

not provided to BOX, then the Market 

Maker may be subject to formal 

disciplinary action. 


pwalker on PROD1PC71 with NOTICES