Federal Register / Vol. 70, No. 229 / Wednesday, November 30, 2005 / Notices 71873 

3 If the dispute involves Funds with separate 

Boards, the Board of each Fund will select an 

independent arbitrator that is satisfactory to each 

Fund. 

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). 

5The proposed rule change applies only to NASD 

member firms. 

6The ‘‘Browse/Query’’ function is also provided 

in Nasdaq Workstation II (NWII) and application 

protocol interface (API) services. NWII and API 

services, however, will be retired as of November 

30, 2005 and December 31, 2005 respectively. 

arbitrator of disputes concerning 

Interfund Loans.3 The arbitrator will 

resolve any problem promptly, and the 

arbitrator’s decision will be binding on 

both Funds. The arbitrator will submit, 

at least annually, a written report to the 

Board of the Funds involved in any 

such dispute setting forth a description 

of the nature of any dispute and the 

actions taken by the Funds to resolve 

the dispute. 

16. Each Fund will maintain and 

preserve for a period of not less than six 

years from the end of the fiscal year in 

which any Interfund Loan occurred, the 

first two years in an easily accessible 

place, a written record of all such 

transactions setting forth a description 

of the terms of the transaction, 

including the amount, the maturity and 

the rate of interest on the loan, the OTD 

Rate, the rate of interest available at the 

time on overnight repurchase 

agreements and bank borrowings, and 

such other information presented to the 

Fund’s Board in connection with the 

review required by conditions (13) and 

(14). 

17. The Interfund Lending Team will 

prepare and submit to the Board of each 

Fund for review an initial report 

describing the operations of the Credit 

Facility and the procedures to be 

implemented to ensure that all Funds 

are treated fairly. After the Credit 

Facility commences operations, the 

Interfund Lending Team will report to 

the Board quarterly on the operations of 

the Credit Facility. 

In addition, for two years following 

the commencement of the Credit 

Facility, the independent public 

accountant for each Fund shall prepare 

an annual report that evaluates the 

Interfund Lending Team’s assertion that 

it has established procedures reasonably 

designed to achieve compliance with 

the conditions of the order. The report 

shall be prepared in accordance with 

the Statements on Standards for 

Attestation Engagements No. 10 and it 

shall be filed pursuant to Item 77Q3 of 

Form N-SAR, as such Statements or 

Form may be revised, amended, or 

superseded from time to time. In 

particular, the report shall address 

procedures designed to achieve the 

following objectives: (i) That the 

Interfund Rate will be higher than both 

the Repo Rate and the OTD Rate but 

lower than the Bank Loan Rate; (ii) 

compliance with the collateral 

requirements described in this 

application; (iii) compliance with the 

percentage limitations on interfund 

borrowing and lending; (iv) allocation of 

interfund borrowing and lending 

demand in an equitable manner and in 

accordance with procedures established 

by the Board: and (v) that the interest 

rate on any Interfund Loan does not 

exceed the interest rate on any third 

party borrowings of a borrowing Fund at 

the time of the Interfund Loan. 

After the final report is filed, the 

Fund’s external auditors, in connection 

with their Fund audit examinations, 

will continue to review the operation of 

the Credit Facility for compliance with 

the conditions of the Application and 

their review will form the basis, in part, 

of the auditor’s report on internal 

accounting controls in Form N-SAR. 

18. No Fund will participate in the 

Credit Facility unless it has fully 

disclosed in its prospectus or SAI or, in 

the case of a closed-end Fund in its 

registration statement or shareholder 

reports, all material facts about its 

intended participation. 

19. The Board of each borrowing and 

lending Fund will satisfy the fund 

governance standards as defined in Rule 

0–1(a)(7) under the Act by the 

compliance date for the rule. 

For the Commission, by the Division of 

Investment Management, under delegated 

authority. 

Jonathan G. Katz, 

Secretary. 

[FR Doc. 05–23492 Filed 11–29–05; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–52825; File No. SR–NASD–

2005–127] 

Self-Regulatory Organizations; 

National Association of Securities 

Dealers, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Modify NASD Rule 

7010 To Change the Fee Structure for 

the ‘‘Browse/Query’’ Function in the 

Trade Reporting Service of the Nasdaq 

Market Center 

November 22, 2005. 

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 November 

1, 2005, the National Association of 

Securities Dealers, Inc. (‘‘NASD’’), 

through its subsidiary, The Nasdaq 

Stock Market, Inc. (‘‘Nasdaq’’), 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 Nasdaq. Nasdaq 

has designated this proposal as one 

establishing or changing a due, fee or 

other charge imposed by Nasdaq 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 

Nasdaq proposes to modify the fee 

structure for the ‘‘Browse/Query’’

function in the trade reporting service of 

the Nasdaq Market Center.5 Nasdaq will 

implement the proposed rule change on 

November 1, 2005. 

The text of the proposed rule change 

is available on the NASD’s Web site at 

http://www.nasd.com, Office of the 

Secretary, NASD, 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, 

Nasdaq 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. Nasdaq has prepared 

summaries, set forth in Sections A, B, 

and C below, of the most significant 

aspects of such statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

Nasdaq customers using the trade 

reporting service of the Nasdaq Market 

Center can view a summary of their 

trade reporting activity by using the 

‘‘Browse/Query’’ function of the Nasdaq 

Workstation.6 The legacy ‘‘Browse/ 

Query’’ function would only display 18 

records per request. In order to view the 

next 18 records, Nasdaq customers 

would have to use the ‘‘More’’ function. 

71874 Federal Register / Vol. 70, No. 229 / Wednesday, November 30, 2005 / Notices 

7 15 U.S.C. 78o–3. 

8 15 U.S.C. 78o–3(b)(5). 

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

10 17 CFR 240.19b–4(f)(2). 

11 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

Nasdaq currently charges customers 

$.288 per initial request and per each 

subsequent use of the ‘‘More’’ function. 

Thus, Nasdaq customers would incur 

additional incremental costs as they 

increased their trade reporting activity. 

Nasdaq has implemented new 

technology that modifies the ‘‘Browse/ 

Query’’ function. The modified 

‘‘Browse/Query’’ function has been 

renamed the ‘‘Query’’ function and each 

‘‘Query’’ request now provides a 

complete summary of all trade reporting 

activity per request. Nasdaq customers 

no longer have to use the ‘‘More’’

function to view the next 18 records. 

Under the proposed rule change, users 

of the new ‘‘Query’’ function will be 

charged $.50 per request. 

2. Statutory Basis 

Nasdaq believes that the proposed 

rule change is consistent with the 

provisions of Section 15A of the Act,7 in 

general, and with Section 15A(b)(5) of 

the Act,8 in particular, in that it 

provides for the equitable allocation of 

reasonable fees, dues, and other charges 

among members and issuers and other 

persons using any facility or system 

which the NASD operates or controls. 

Further, Nasdaq believes that the 

proposed fee structure for the new 

‘‘Query’’ function is reasonable because 

the new ‘‘Query’’ function provides 

more information per request than the 

old ‘‘Browse/Query’’ function. Nasdaq 

believes the new fee structure is also 

equitable because it applies to all users 

of the ‘‘Query’’ function on an equal 

basis. Although the fee for the new 

‘‘Query’’ function is more than the fee 

for the old ‘‘Browse/Query’’ function, 

Nasdaq believes its customers will 

benefit from an overall reduction in 

their costs because they will not incur 

additional incremental charges to view 

all of their trade reporting activity. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

Nasdaq does not believe that the 

proposed rule change will impose any 

inappropriate burden on competition. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

Written comments on the proposed 

rule change were neither solicited nor 

received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing proposed rule change 

has become immediately effective 

pursuant to Section 19(b)(3)(A)(ii) of the 

Act 9 and subparagraph (f)(2) of Rule 

19b–4 thereunder,10 in that it 

establishes or changes a due, fee or 

other charge imposed by Nasdaq. At any 

time within 60 days of the filing of such 

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–NASD–2005–127 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Jonathan G. Katz, Secretary, 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–9303. 

All submissions should refer to File 

Number SR–NASD–2005–127. 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 

Section. Copies of the filing also will be 

available for inspection and copying at 

the principal office of NASD. 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–NASD–2005–127 and 

should be submitted on or before 

December 21, 2005. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.11

Jonathan G. Katz, 

Secretary. 

[FR Doc. 05–23495 Filed 11–29–05; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–52826; File No. SR–NYSE–

2005–67] 

Self-Regulatory Organizations; New 

York Stock Exchange, Inc.; Notice of 

Filing and Order Granting Accelerated 

Approval of Proposed Rule Change 

Relating to iShares Dow Jones U.S. 

Energy Sector Index Fund and iShares 

Dow Jones U.S. Telecommunications 

Sector Index Fund 

November 22, 2005. 

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

Securities Exchange Act of 1934 (‘‘Act’’

or ‘‘Exchange Act’’),1 and Rule 19b–4 

thereunder,2 notice is hereby given that 

on September 30, 2005 the New York 

Stock Exchange, Inc. (‘‘NYSE’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’ or ‘‘SEC’’) 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 NYSE proposes to list and trade 

the iShares Dow Jones U.S. Energy 

Sector Index Fund and iShares Dow 

Jones U.S. Telecommunications Sector 

Index Fund, both exchange-traded