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 

Federal Register / Vol. 74, No. 4 / Wednesday, January 7, 2009 / Notices 755 

impact on efficiency, competition, and capital 

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

7 15 U.S.C. 78f(b)(5). 

8See e-Mail from Tim Malinowski, Director, 

NYSE Euronext, to Christopher W. Chow, Special 

Counsel, Commission, dated December 23, 2008. 

See also Securities Exchange Act Release No. 56637 

(October 10, 2007), 72 FR 58704, 58709 (October 16, 

2007). 

9 15 U.S.C. 78s(b)(2). 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 58444 

(August 29, 2008), 73 FR 51872 (September 5, 2008) 

(SR–NYSEArca–2008–96). 

4See Securities Exchange Act Release Nos. 57965 

(June 16, 2008), 73 FR 35178 (June 20, 2008) (SR– 

NASDAQ–2006–060); 57973 (June 16, 2008), 73 FR 

35430 (June 23, 2008) (SR–NASDAQ–2008–050). 

5See Securities Exchange Act Release No. 57966 

(June 16, 2008), 73 FR 35182 (June 20, 2008) (SR– 

NYSE–2007–04). 

6The Exchange notes that it will make the NYSE 

Arca Realtime Reference Prices available to vendors 

no earlier than it makes those prices available to the 

processor under the CTA Plan. 

Commission finds that the proposed 

rule change is consistent with Section 

6(b)(5) of the Act,7 which requires that 

the rules of the Exchange be 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 the 

proposal reasonably balances the 

removal of impediments to a free and 

open market with the protection of 

investors and the public interest, two 

principles set forth in Section 6(b)(5) of 

the Act. As a result of the proposal, the 

permissible percentage of underlying 

foreign country securities and/or foreign 

country securities underlying ADRs 

trading on foreign markets that are not 

ISG members or parties to a CSSA with 

the Exchange would be limited to 50% 

of the overall dollar weight of the index. 

The Commission believes that this 

portion of the proposal would permit 

increased flexibility with respect to 

listing and trading Equity Index-Linked 

Securities. At the same time, the 

proposed amendment also provides that 

the securities trading on: (1) Any one 

Non-Reciprocal Foreign Market must 

not constitute more than 20% of the 

overall dollar weight of the index; and 

(2) any two Non-Reciprocal Foreign 

Markets must not constitute more than 

33% of the overall dollar weight of the 

index. These conditions establish 

concentration limits designed to ensure 

that a significant percentage of an 

underlying index is not composed of 

securities trading on any one or two 

Non-Reciprocal Foreign Markets. 

Additionally, in light of its proposed 

revision to the listing criteria for Equity 

Index-Linked Securities, the Exchange 

has renewed its representation that its 

surveillance procedures applicable to 

Equity Index-Linked Securities are 

adequate to detect and deter violations 

of its Rules and all applicable federal 

securities laws.8

The Commission also believes that the 

technical and non-substantive changes 

to NYSE Arca Equities Rule 

5.2(j)(6)(B)(I)(1)(b)(v) clarify the format 

and application of the proposed 

amendment related to Equity IndexLinked Securities. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,9 that the 

proposed rule change (SR–NYSEArca– 

2008–121) be, and it hereby is, 

approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E9–6 Filed 1–6–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59184; File No. SR– 

NYSEArca–2008–143] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and Order 

Granting Accelerated Approval of 

Proposed Rule Change To Extend the 

Pilot Program for NYSE Arca Realtime 

Reference Prices Service 

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 

30, 2008, NYSE Arca, Inc. (the 

‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with 

the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change as described in 

Items I and II below, which Items have 

been prepared by the Exchange. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons, and is 

approving the proposal on an 

accelerated basis. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to extend the 

expiration date of its pilot program for 

the NYSE Arca Realtime Reference 

Prices service until March 31, 2009. 

There is no new rule text. 

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 

self-regulatory organization 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 those 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 parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

In File No. SR–NYSEArca–2008–96, 

the Exchange established a pilot 

program that allows the Exchange to test 

the viability of a new NYSE Arca-only 

market data service that allows a vendor 

to redistribute on a real-time basis last 

sale prices of transactions that take 

place on the Exchange (‘‘NYSE Arca 

Realtime Reference Prices’’) and to 

establish a flat monthly fee for that 

service. The Commission approved that 

pilot program on August 29, 2008.3

The Exchange intends for the NYSE 

Arca Realtime Reference Prices service 

to accomplish three goals: 

1. To provide a low-cost service that 

will make real-time prices widely 

available to millions of casual investors; 

2. To provide vendors with a real-time 

substitute for delayed prices; and 

3. To relieve vendors of 

administrative burdens. 

This pilot program is similar to pilot 

programs that the Nasdaq Stock Market, 

Inc. (‘‘Nasdaq’’) 4 and the New York 

Stock Exchange, LLC (‘‘NYSE’’) 5 have 

established. 

The pilot program allows internet 

service providers, traditional market 

data vendors, and others (‘‘NYSE ArcaOnly Vendors’’) to make available NYSE 

Arca Realtime Reference Prices on a 

real-time basis.6 The NYSE Arca 

Realtime Reference Price information 

includes last sale prices for all securities 

that trade on the Exchange. It includes 

only prices, and not the size of each 

trade and not bid/asked quotations. 

It features a flat, fixed monthly vendor 

fee, no user-based fees, no vendor 

reporting requirements, and no 

professional or non-professional 

subscriber agreements.