27868 Federal Register / Vol. 72, No. 95 / Thursday, May 17, 2007 / Notices 

7 17 CFR 242.608. 

8See supra note 6. 

9 15 U.S.C. 78k–1. 

10 17 CFR 242.608. 

11 15 U.S.C. 78k–1. 

12 17 CFR 242.608. 

13 17 CFR 200.30–3(a)(29). 

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

2 17 CFR 240.19b–4. 

3Additional information regarding the 

streetTRACKS Gold Shares is at http:// 

www.streettracksgoldshares.com. 

4See Securities Exchange Act Release No. 50603 

(October 28, 2004), 69 FR 64614 (November 5, 2004) 

(SR–NYSE–2004–22). 

5The gold spot price at the Trust’s Web site will 

be provided by The Bullion Desk (http:// 

www.thebulliondesk.com). The Trust’s Web site 

will indicate that there are other sources for 

obtaining the gold spot price. If the Trust’s Web site 

should cease to provide this indicative spot price 

from an unaffiliated source (and the intraday 

indicative value) of the Shares, CBOE would cease 

to trade the Shares. 

from 20 seconds to 5 seconds. The 

Participants also proposed to reduce the 

time frame in which a Participant must 

respond to a Linkage Order from 15 to 

5 seconds after receipt of that Order. 

III. Discussion and Commission 

Findings 

The Commission previously 

determined, pursuant to Rule 608 under 

the Act,7 to put into effect summarily on 

a temporary basis not to exceed 120 

days, the changes to the Linkage Plan 

detailed above in Joint Amendment No. 

22.8 After careful consideration of Joint 

Amendment No. 22, the Commission 

finds that approving Joint Amendment 

No. 22 is consistent with the 

requirements of the Act and the rules 

and regulations thereunder. 

Specifically, the Commission finds that 

Joint Amendment No. 22 is consistent 

with Section 11A of the Act 9 and Rule 

608 thereunder 10 in that it is 

appropriate in the public interest, for 

the protection of investors and the 

maintenance of fair and orderly markets. 

The Commission believes that reducing 

the time required by a Participant to 

respond to a Linkage Order and the 

amount of time a member sending a 

Linkage Order must wait before trading 

through a nonresponsive Participant 

should facilitate the more timely 

execution of orders across the options 

exchanges. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 11A of the Act 11 and Rule 608 

thereunder,12 that Joint Amendment No. 

22 is approved. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.13

Jill M. Peterson, 

Assistant Secretary. 

[FR Doc. E7–9437 Filed 5–16–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55752; File No. SR–CBOE–

2007–44] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Order Granting Accelerated Approval 

of Proposed Rule Change to Trade the 

streetTRACKS Gold Shares Fund 

Pursuant to Unlisted Trading 

Privileges 

May 11, 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 8, 

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. 

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 Chicago Board Options Exchange, 

Incorporated proposes to: (1) trade on its 

stock trading facility, CBOE Stock 

Exchange (‘‘CBSX’’), the streetTRACKS 

Gold Shares (‘‘GLD’’ or ‘‘Shares’’) 

pursuant to unlisted trading privileges 

(‘‘UTP’’), and (2) adopt Exchange Rule 

54.8, which governs the trading of 

commodity-based trust shares. 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 

the Shares on CBSX pursuant to UTP. 

The Shares represent fractional, 

undivided beneficial ownership 

interests in the streetTRACKS Gold 

Trust (‘‘Trust’’). The Trust is an 

investment trust, the sole assets of 

which are gold bullion, and from time 

to time, cash.3 The Commission 

previously approved the original listing 

and trading of the Shares on the New 

York Stock Exchange (‘‘NYSE’’).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 

the Shares on the Exchange would be 

from 8:15 a.m. until 3:15 p.m. (Central 

Time). 

The last-sale price for the Shares is 

disseminated over the Consolidated 

Tape. Gold pricing information based on 

the spot price for a troy ounce of gold 

from various financial information 

service providers, such as Reuters and 

Bloomberg, is available on a 24-hour 

basis. Complete real-time data for gold 

futures and options prices traded on the 

COMEX (a division of the NYMEX) is 

available by subscription from Reuters 

and Bloomberg. The NYMEX also 

provides delayed futures and options 

information on current and past trading 

sessions and market news free of charge 

on its Web site. CBOE, via a link from 

its own public Web site (http:// 

www.cboe.com) to the Trust Web site 

(http:// 

www.streettracksgoldshares.com), will 

provide at no charge continuously 

updated bids and offers indicative of the 

spot price of gold.5

The Trust Web site also will provide 

a calculation of the estimated NAV (also 

known as the Intraday Indicative Value 

or IIV) of a Share as calculated by 

multiplying the indicative spot price of 

gold by the quantity of gold backing 


pwalker on PROD1PC71 with NOTICES
Federal Register / Vol. 72, No. 95 / Thursday, May 17, 2007 / Notices 27869 

6The Trust’s Web site, to which the CBOE Web 

site will link, will disseminate an indicative spot 

price of gold and the IIV, and indicate that these 

values are subject to an average delay of five to ten 

seconds. 

7The bid/ask price is determined using the 

highest bid and lowest offer on the Consolidated 

Tape as of the time of calculation of the closing day 

IIV. 

8The last sale price of the Shares in the secondary 

market is available on a real-time basis for a fee 

from regular data vendors. 

9CBOE Rule 6.3B. 

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

11 15 U.S.C. 78s(b)(5). 12 17 CFR 240.12f–5. 

each Share. Comparing the IIV with the 

last sale price of the Shares helps an 

investor to determine whether, and to 

what extent, Shares may be selling at a 

premium or a discount to the NAV. 

Although provided free of charge, the 

indicative spot price and IIV per Share 

will be provided on an essentially realtime basis.6 The Trust Web site provides 

the NAV of the Trust as calculated each 

business day by the Sponsor. In 

addition, the Trust Web site contains 

the following information, on a perShare basis, for the Trust: (a) The IIV as 

of the close of the prior business day 

and the midpoint of the bid/ask price 7

in relation to such IIV (‘‘Bid/Ask 

Price’’), and a calculation of the 

premium or discount of such price 

against such IIV; and (b) data in chart 

format displaying the frequency 

distribution of discounts and premiums 

of the Bid/Ask Price against the IIV, 

within appropriate ranges, for each of 

the four previous calendar quarters. The 

Trust Web site also provides the Trust’s 

prospectus, as well as the two most 

recent reports to stockholders. The Trust 

Web site provides the last sale price of 

the Shares as traded in the U.S. market, 

subject to a 20-minute delay.8

In connection with the trading of the 

Shares, CBOE would inform its 

members in an Information Circular of 

the special characteristics and risks 

associated with trading the Shares, such 

as loss, damage, or theft of the Trust’s 

gold, and unanticipated problems 

related to the mechanisms and 

procedures that were specifically 

developed for this relatively new 

securities product. CBOE also would 

require its members to deliver a 

prospectus or product description to 

investors purchasing Shares prior to or 

concurrently with a transaction in 

Shares. In addition, CBOE Rule 53.6 

requires member organizations to have a 

reasonable basis for recommending the 

Shares when recommending a 

transaction in the Shares. 

CBOE believes that its surveillance 

procedures are adequate to address any 

concerns about the trading of the Shares 

on the Exchange because those 

procedures will be comparable to those 

used for exchange-traded funds and 

trust-issued receipts currently trading 

on the Exchange, and will incorporate 

and rely upon existing Exchange 

surveillance procedures governing 

equities. In addition, for intermarket 

surveillance purposes, the Exchange has 

entered into a reciprocal Memorandum 

of Understanding with NYMEX for the 

sharing of information related to any 

financial instrument based, in whole or 

in part, upon an interest in or 

performance of gold. 

Further, proposed CBOE Rule 54.8 

would impose certain obligations on 

Market-Makers that would apply in 

connection with trading the Shares. 

CBOE Rule 54.8(e) would require that a 

Market-Maker in the Shares provide the 

Exchange with information related to its 

trading in physical gold, gold futures 

contracts, options on gold futures, or 

any other gold derivatives. CBOE Rule 

54.8(g) would prohibit a Market-Maker 

in the Shares from using any material 

non-public information received from 

any person associated with the MarketMaker or employee of such person 

regarding trading by such person or 

employee in physical gold, gold futures 

contracts, options on gold futures, or 

any other gold derivatives. In addition, 

CBOE Rule 54.8(d) would prohibit a 

Market-Maker in the Shares from being 

affiliated with a market maker in 

physical gold, gold futures contracts, 

options on gold futures, or any other 

gold derivatives unless the specified 

information barriers are in place. 

With respect to trading halts, the 

Exchange may consider all relevant 

factors in exercising its discretion to 

halt or suspend trading in the Shares. 

Trading may be halted because of 

market conditions or for reasons that, in 

the view of the Exchange, make trading 

in the Shares inadvisable. In addition, 

trading in the Shares would be subject 

to trading halts caused by extraordinary 

market volatility pursuant to the 

Exchange’s ‘‘circuit breaker’’ rule.9

Moreover, the Exchange represents 

that it would cease trading the Shares if 

the listing market stops trading the 

Shares because of a regulatory halt 

similar to a halt based on CBOE Rule 

6.3. UTP trading in the Shares is also 

governed by the trading halts provisions 

of CBOE Rule 52.3 relating to temporary 

interruptions in the calculation or wide 

dissemination of the IIV. 

2. Statutory Basis 

CBOE 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 the proposal 

is designed to promote just and 

equitable principles of trade, remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system, and 

protect investors and the public interest. 

In addition, CBOE believes that the 

proposal is consistent with Rule 12f–5 

under the Act 12 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. 

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–2007–44 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Nancy M. Morris, Secretary, 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–1090. 

All submissions should refer to File 

Number SR–CBOE–2007–44. This file 

number should be included on the 

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

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

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

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 


pwalker on PROD1PC71 with NOTICES
27870 Federal Register / Vol. 72, No. 95 / Thursday, May 17, 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. 

18 17 CFR 240.12f–5. 

19 15 U.S.C. 78k–1(a)(1)(C)(iii). 

20See e.g., NYSE Arca Equities Rule 7.34; 

Securities Exchange Act Release No. 54997 

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

2006). 

21See, e.g., Nasdaq Rule 4630; Securities 

Exchange Act Release No. 54765 (November 16, 

2006), 71 FR 67668 (November 22, 2006) (approving 

SR–Nasdaq–2006–009). 

22 15 U.S.C. 78s(b)(2). 

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–2007–44 and should 

be submitted on or before June 7, 2007. 

IV. Commission’s Findings and Order 

Granting Accelerated Approval of the 

Proposed Rule Change 

After careful review, the Commission 

finds that the proposed rule change is 

consistent with the requirements of the 

Act and the rules and regulations 

thereunder applicable to a national 

securities exchange.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 the 

NYSE.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, as noted by the Exchange, 

various means exist for investors to 

obtain reliable gold price information 

and thereby to monitor the underlying 

spot market in gold relative to the NAV 

of their Shares. 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. 

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.20

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. Among other things, the 

Exchange entered into a reciprocal 

Memorandum of Understanding with 

NYMEX for the sharing of information 

related to any financial instrument 

based, in whole or in part, upon an 

interest in or performance of gold. 

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. 

Finally, the Commission believes that 

proposed CBOE Rule 54.8, which 

imposes information barriers and 

trading restrictions on a member acting 

as a registered market maker in the 

Shares, is consistent with the Act. The 

Commission notes that CBOE Rule 54.8 

is substantially similar to rules of other 

exchanges that previously have been 

approved by the Commission.21

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 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,22 that the 

proposed rule change (SR–CBOE–2007–


pwalker on PROD1PC71 with NOTICES
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 


pwalker on PROD1PC71 with NOTICES