Federal Register / Vol. 74, No. 4 / Wednesday, January 7, 2009 / Notices 753 

15 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(2). 

5See Securities Exchange Release No. 59045 

(December 3, 2008), 73 FR 75151 (December 10, 

2008) (SR–NYSEALTR–2008–09). 

6See Securities Exchange Act Release No. 57823 

(May 15, 2008), 73 FR 29804 (May 22, 2008) (SR– 

NYSE–2008–38). 

7 15 U.S.C. 78f. 

8 15 U.S.C. 78a et seq. 

9 15 U.S.C. 78f(b)(4). 

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, 100 F Street, NE., Washington, 

DC 20549, on official business days 

between the hours of 10 a.m. and 3 p.m. 

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–NYSEALTR–2008–20 and 

should be submitted on or before 

January 28, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E9–2 Filed 1–6–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59179; File No. SR– 

NYSEALTR–2008–16] 

Self-Regulatory Organizations; NYSE 

Alternext U.S. LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Make Permanent the 

NYSE Alternext Bonds System Fee 

Schedule Which Is Currently Set To 

Expire on December 31, 2008 as Well 

as Make Technical Amendments to the 

Fee Schedule 

December 30, 2008. 

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 December 

24, 2008, NYSE Alternext U.S. LLC 

(‘‘NYSEALTR’’ or the ‘‘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 prepared by NYSEALTR. The 

Exchange has designated this proposal 

as one establishing or changing a due, 

fee, or other charge imposed by the 

Exchange under Section 19(b)(3)(A)(ii) 

of the Act 3 and Rule 19b-4(f)(2) 

thereunder,4 which renders the proposal 

effective upon filing with the 

Commission. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to make 

permanent the NYSE Alternext Bonds 

System fee schedule which is currently 

set to expire on December 31, 2008 as 

well as make technical amendments to 

the fee schedule. 

The text of the proposed rule change 

is available at NYSE Alternext, the 

Commission’s Public Reference Room, 

and http://www.nyse.com. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

NYSEALTR 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. 

NYSEALTR 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 

NYSE Alternext proposes to make 

permanent the NYSE Alternext Bonds 

System fee schedule which is currently 

set to expire on December 31, 2008 as 

well as make technical amendments to 

the fee schedule. 

The Exchange recently filed a rule 

change that established, inter alia, the 

NYSE Alternext Bonds System fee 

schedule (‘‘fee schedule’’).5 The fee 

schedule established execution fees per 

bond for orders that took liquidity from 

the NYSE Alternext Bonds Book. The 

fee schedule was structured to be 

similar to the NYSE Bonds Price List. 

The Exchange’s reasoning for 

structuring the fee schedule in this 

fashion was because member 

organizations of NYSE Alternext that 

trade bonds and NYSE member 

organizations are member organizations 

of both exchanges. This dual 

membership structure allows all 

member organizations to trade on both 

exchanges and harmonizes the pricing 

structures of the two exchanges. 

The Exchange is proposing a rule 

change to make the fee schedule 

permanent. At the time the fee schedule 

was first implemented as part of a larger 

NYSE Alternext filing (SR–NYSEALTR– 

2008–09), the Exchange inadvertently 

applied an expiration date of December 

31, 2008 to the fee schedule which 

corresponded with the expiration of the 

NYSE Bonds pilot program for liquidity 

takers.6 The Exchange intended to 

implement a permanent fee schedule for 

the NYSE Alternext Bonds System. 

Accordingly, the Exchange requests that 

the expiration date of December 31, 

2008 be removed from the fee schedule. 

Additionally, the Exchange seeks to 

clarify the language in the fee schedule 

by replacing the word ‘‘order’’ with 

‘‘execution.’’ The Exchange is not 

billing liquidity takers on the orders but 

rather the executions of those orders. 

Accordingly, the Exchange has 

proposed to amend the fee schedule to 

clarify the current language in the fee 

schedule. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the provisions of Section 6 7 of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’) 8 in general and Section 6(b)(4) of 

the Act 9 in particular, in that it is 

designed to provide for the equitable 

allocation of reasonable dues, fees and 

other charges among its members and 

other persons using its facilities. The 

Exchange believes that the proposal 

does not constitute an inequitable 

allocation of dues, fees and other 

charges as the same fees will be charged 

to all member organizations. 

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 purposes of the Act. 

754 Federal Register / Vol. 74, No. 4 / Wednesday, January 7, 2009 / Notices 

10 15 U.S.C. 78s(b)(3)(A). 

11 17 CFR 240.19b–4(f)(2). 

12 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3Equity Index-Linked Securities are securities, 

the payment at maturity of which is based on the 

performance of an underlying index or indexes of 

equity securities (‘‘Equity Reference Asset’’). 

4See Securities Exchange Act Release No. 58984 

(November 20, 2008), 73 FR 72546. 5 15 U.S.C. 78f. 

6 In approving this proposed rule change, the 

Commission has considered the proposed rule’s 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants or Others 

No written comments were solicited 

or received with respect to the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing rule change 

establishes or changes a due, fee, or 

other charge imposed by the Exchange, 

it has become effective pursuant to 

Section 19(b)(3)(A) of the Act 10 and 

subparagraph (f)(2) of Rule 19b–4 

thereunder.11 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–NYSEALTR–2008–16 on 

the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street, NE., 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–NYSEALTR–2008–16. 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, 100 F Street, NE., Washington, 

DC 20549, on official business days 

between the hours of 10 a.m. and 3 p.m. 

Copies of such filing also will be 

available for inspection and copying at 

the principal office of NYSEALTR. 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–NYSEALTR–2008–16 and 

should be submitted on or before 

January 28, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E9–5 Filed 1–6–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59180; File No. SR– 

NYSEArca–2008–121] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Order Approving Proposed 

Rule Change Amending Rule 5.2(j)(6) 

To Increase the Permissible Aggregate 

Weight of Underlying Foreign Country 

Securities 

December 30, 2008. 

I. Introduction 

On October 29, 2008, NYSE Arca, Inc. 

(‘‘Exchange’’ or ‘‘NYSE Arca’’), through 

its wholly owned subsidiary, NYSE 

Arca Equities, Inc. (‘‘NYSE Arca 

Equities’’), filed with the Securities and 

Exchange Commission (‘‘Commission’’) 

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

Securities Exchange Act of 1934 

(‘‘Act’’) 1 and Rule 19b–4 thereunder2 a 

proposed rule change amending NYSE 

Arca Equities Rule 5.2(j)(6) relating to 

the listing of Equity Index-Linked 

Securities.3 The proposed rule change 

was published for comment in the 

Federal Register on November 28, 

2008.4 The Commission received no 

comment letters on the proposed rule 

change. This order approves the 

proposed rule change. 

II. Description of the Proposed Rule 

Change 

The Exchange’s listing standards for 

Equity Index-Linked Securities, among 

other criteria, currently limit the 

permissible aggregate weight of 

underlying foreign country securities 

and American Depository Receipts 

(‘‘ADRs’’) that can be included in the 

Equity Reference Asset to 20% of the 

overall index where the primary trading 

markets of such foreign country 

securities or foreign country securities 

underlying such ADRs are not members 

of the Intermarket Surveillance Group 

(‘‘ISG’’) or parties to comprehensive 

surveillance sharing agreements 

(‘‘CSSAs’’) with the Exchange. The 

Exchange proposes to amend NYSE 

Arca Equities Rule 5.2(j)(6)(B)(I)(1)(b)(v) 

to increase the permissible aggregate 

weight of such underlying foreign 

country securities and ADRs up to 50% 

of the overall index, subject to certain 

other limitations. 

Specifically, the proposal would 

permit the listing and trading of Equity 

Index-Linked Securities where the 

underlying foreign country securities 

and/or foreign country securities 

underlying ADRs primarily trading on 

non-U.S. markets that are not ISG 

members or otherwise subject to a CSSA 

agreement with the Exchange account 

for up to 50% of the aggregate dollar 

weight of the index, provided that: (1) 

The securities of any one primary 

foreign market which is not an ISG 

member or does not have a CSSA with 

the Exchange (‘‘Non-Reciprocal Foreign 

Markets’’) do not represent more than 

20% of the dollar weight of the index; 

and (2) the securities of any two NonReciprocal Foreign Markets do not 

represent more than 33% of the dollar 

weight of the index. The Exchange also 

seeks to make technical and nonsubstantive modifications to NYSE Arca 

Equities Rule 5.2(j)(6)(B)(I)(1)(b)(v). 

III. Discussion and Commission’s 

Findings 

The Commission has carefully 

reviewed the proposed rule change and 

finds that it is consistent with the 

requirements of Section 6 of the Act 5

and the rules and regulations 

thereunder applicable to a national 

securities exchange.6 In particular, the