Federal Register / Vol. 73, No. 51 / Friday, March 14, 2008 / Notices 13943 

6 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). 7 15 U.S.C. 78f(b)(5). 

8The Exchange states that, in 2007, the average 

daily spot turnover accounted for over US$1 

trillion, and the average daily forward turnover 

accounted for US$362 billion. See supra notes 4 

and 5. 9See id. 

10See 17 CFR 240.19b–4(e)(1). Rule 19b–4(e)(1) 

under the Act provides that the listing and trading 

of a new derivative securities product by a selfregulatory organization (‘‘SRO’’) shall not be 

deemed a proposed rule change, pursuant to 

paragraph (c)(1) of Rule 19b–4 under the Act (17 

CFR 240.19b–4(c)(1)), if the Commission has 

approved, pursuant to Section 19(b) of the Act (15 

U.S.C. 78s(b)), the SRO’s trading rules, procedures, 

and listing standards for the product class that 

would include the new derivatives securities 

product, and the SRO has a surveillance program 

for the product class. 

11The Commission further notes that, if the 

Exchange seeks to list and trade a Currency-Linked 

Security product based on forward prides of nonHigh Volume Global Currencies, it can does so by 

filing a proposed rule change pursuant to Sections 

19(b)(1) of the Act. 

12The proposal also states that, with respect to a 

Currency-Linked Security that is based on the 

forward price of a foreign currency, if the forward 

price is not available due to a holiday, the spot 

price may be used for calculating the pricing 

information on the Currency Reference Asset. The 

pricing information on the following business day 

must be based on the forward price. See proposed 

Commentary .01 to NYSE Arca Equities Rule 

5.2(j)(6)(B)(III). 

13 15 U.S.C. 78s(b)(2). 14 17 CFR 200.30–3(a)(12). 

is based on the forward price. In the 

event a Currency Reference Asset is 

based on the forward price, and the 

forward price becomes unavailable due 

to a holiday, the spot price may be used 

for calculating the price of the 

component(s) comprising the Currency 

Reference Asset. The pricing 

information of such Currency Reference 

Asset on the following business day 

must be the forward price. This 

exception is intended to permit certain 

hedged products that use forward 

pricing information to use the spot 

price, which is quoted in the United 

States, when the forward price, which is 

derived from the spot price, is 

unavailable due to a foreign holiday. 

III. Discussion and Commission’s 

Findings 

After careful consideration, 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.6 In 

particular, the Commission finds that 

the proposed rule change is consistent 

with the requirements of Section 6(b)(5) 

of the Act,7 which requires, among other 

things, that the Exchange’s rules be 

designed to promote just and equitable 

principles of trade, to foster cooperation 

and coordination with persons engaged 

in regulating, clearing, settling, 

processing information with respect to, 

and facilitating transactions in 

securities, 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 

opportunities to invest in derivative 

securities products based not only on 

the spot value, but also on the forward 

price, of a foreign currency provide 

additional choices to accommodate 

particular investment needs and 

objectives, should benefit investors. The 

Commission notes that the foreign 

exchange market as a whole, which is 

predominantly OTC, is a highly liquid 

market.8 The Commission also notes 

that outright forward transactions 

account for a material percentage of 

reported daily volume on the foreign 

exchange markets.9

In the interest of assuring sufficient 

liquidity of the underlying components 

and thereby protecting investors of 

Currency-Linked Securities that are 

based on the generally accepted forward 

price for the currency exchange rate in 

question, the use of forward pricing 

information for any such component of 

a Currency Reference Asset would be 

limited to the High Volume Global 

Currencies. The Commission notes that 

Currency-Linked Securities that satisfy 

the applicable requirements under 

NYSE Arca Equities Rule 5.2(j)(6) would 

be able to be listed and traded pursuant 

to Rule 19b–4(e) under the Act.10 The 

Commission believes that, to list and 

trade Currency-Linked Security 

products based on forward prices of 

foreign currencies pursuant to Rule 

19b–4(e) under the Act, limiting such 

foreign currencies to the High Volume 

Global Currencies is an appropriate 

measure to assure sufficient liquidity in 

the underlying components.11 In 

addition, the forward price should be 

used for pricing purposes only to the 

extent that the Currency Reference Asset 

is based on the forward price.12 The 

Commission believes that the proposed 

rule change, which seeks to expand the 

types of components on which 

Currency-Linked Securities are based, 

should promote the listing and trading 

of additional Currency-Linked 

Securities and thereby support greater 

options and competition in such 

products, to the benefit of investors and 

the public interest. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,13 that the 

proposed rule change (SR–NYSEArca–

2008–12) be, and it hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E8–5099 Filed 3–13–08; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[File No. 500–1] 

In the Matter of Beverage Creations, 

Inc.; Order of Suspension of Trading 

Date: March 12, 2008. 

It appears to the Securities and 

Exchange Commission that the market 

for the securities of Beverage Creations, 

Inc. (‘‘BCI’’), quoted on the Pink Sheets 

under the ticker symbol BVRG, may be 

reacting to manipulative forces or 

deceptive practices and that there is a 

lack of current and accurate information 

about BCI upon which an informed 

investment decision can be made. For 

example, it appears that BCI distributed 

a press release falsely disclaiming its 

affiliation with a company that has been 

touting BCI’s stock through a widely 

distributed promotional mailer. In 

addition to the promotional mailer, 

several stock promotion Web sites have 

featured BCI’s stock, including one that 

has touted the stock through numerous 

e-mail alerts. 

The Commission is of the opinion that 

the public interest and the protection of 

investors require a suspension of trading 

in the securities of the above listed 

company. 

Therefore, it is ordered, pursuant to 

Section 12(k) of the Securities Exchange 

Act of 1934, that trading in the above 

listed company is suspended for the 

period from 9:30 a.m. EDT, March 12, 

2008 through 11:59 p.m. EDT, on March 

26, 2008. 

By the Commission. 

Nancy M. Morris, 

Secretary. 

[FR Doc. 08–1033 Filed 3–12–08; 10:19am] 

BILLING CODE 8011–01–P 

SMALL BUSINESS ADMINISTRATION 

Disaster Declaration # 11162; Kansas 

Disaster Number KS–00025 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Amendment 1. 


rwilkins on PROD1PC63 with NOTICES