25004 Federal Register / Vol. 75, No. 87 / Thursday, May 6, 2010 / Notices 

1 15 U.S.C. 78q(d). 

2 15 U.S.C. 78k–1(a)(3)(B). 

3 17 CFR 240.17d–2. 

4 15 U.S.C. 78s(g)(1). 

5 15 U.S.C. 78q(d). 

6 15 U.S.C. 78s(g)(2). 

7 15 U.S.C. 78q(d)(1). 

8 17 CFR 240.17d–1 and 17 CFR 240.17d–2, 

respectively. 

two feeder funds, each of which is 

solely owned by an affiliate of 

applicant’s investment adviser. 

Applicant’s business activities consist 

solely of holding investments that 

cannot be immediately liquidated. 

Applicant is not presently making an 

offer of securities and does not propose 

to make any offering of securities. 

Applicant will continue to operate in 

reliance of section 3(c)(1) of the Act. 

Filing Date: The application was filed 

on February 24, 2010. 

Applicant’s Address: 11 Madison 

Ave., 13th Floor, New York, NY 10010. 

Credit Suisse Alternative Capital Long/ 

Short Equity Master Fund, LLC 

[File No. 811–21739] 

Summary: Applicant, a closed-end 

investment company, seeks an order 

declaring that it has ceased to be an 

investment company. Applicant made a 

private offering of its securities from 

April 2005 until November 2009, at 

which time its board of managers 

determined to cease such offer. 

Applicant serves as a master fund for 

two feeder funds, each of which is 

solely owned by an affiliate of 

applicant’s investment adviser. 

Applicant’s business activities consist 

solely of holding investments that 

cannot be immediately liquidated. 

Applicant is not presently making an 

offer of securities and does not propose 

to make any offering of securities. 

Applicant will continue to operate in 

reliance of section 3(c)(1) of the Act. 

Filing Date: The application was filed 

on February 24, 2010. 

Applicant’s Address: 11 Madison 

Ave., 13th Floor, New York, NY 10010. 

Separate Account VA WM 

[File No. 811–21961] 

Summary: Applicant seeks an order 

declaring that it has ceased to be an 

investment company. Applicant 

requests deregistration based on 

abandonment of registration. Applicant 

is not now engaged, or intending to 

engage, in any business activities other 

than those necessary for winding up its 

affairs. 

Filing Date: The application was filed 

on February 25, 2010. 

Applicant’s Address: 4333 Edgewood 

Road NE, Cedar Rapids, IA 52499–0001. 

Separate Account VA Z 

[File No. 811–22063] 

Summary: Applicant seeks an order 

declaring that it has ceased to be an 

investment company. Applicant 

requests deregistration based on 

abandonment of registration. Applicant 

is not now engaged, or intending to 

engage, in any business activities other 

than those necessary for winding up its 

affairs. 

Filing Date: The application was filed 

on February 25, 2010. 

Applicant’s Address: 4333 Edgewood 

Road NE, Cedar Rapids, IA 52499–0001. 

Separate Account VA GNY 

[File No. 811–22064] 

Summary: Applicant seeks an order 

declaring that it has ceased to be an 

investment company. Applicant 

requests deregistration based on 

abandonment of registration. Applicant 

is not now engaged, or intending to 

engage, in any business activities other 

than those necessary for winding up its 

affairs. 

Filing Date: The application was filed 

on February 25, 2010. 

Applicant’s Address: 4 

Manhattanville Road, Purchase, NY 

10577. 

For the Commission, by the Division of 

Investment Management, pursuant to 

delegated authority. 

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–10651 Filed 5–5–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62000; File No. 4–596] 

Program for Allocation of Regulatory 

Responsibilities Pursuant to Rule 

17d–2; Order Approving and Declaring 

Effective a Plan for the Allocation of 

Regulatory Responsibilities Between 

the International Securities Exchange, 

LLC and the Financial Industry 

Regulatory Authority, Inc. Concerning 

Ballista Securities LLC 

April 29, 2010. 

Notice is hereby given that the 

Securities and Exchange Commission 

(‘‘Commission’’) has issued an Order, 

pursuant to Sections 17(d) 1 and 

11A(a)(3)(B) 2 of the Securities Exchange 

Act of 1934 (‘‘Act’’), approving and 

declaring effective a plan for the 

allocation of regulatory responsibilities 

(‘‘17d–2 Plan’’) that was filed pursuant 

to Rule 17d–2 3 under the Act by the 

International Securities Exchange, LLC 

(‘‘ISE’’) and the Financial Industry 

Regulatory Authority, Inc. (‘‘FINRA’’) 

(together with ISE, the ‘‘Parties’’). 

Accordingly, FINRA shall assume, in 

addition to the regulatory responsibility 

it has under the Act, the regulatory 

responsibilities allocated to it under the 

Plan. At the same time, ISE is relieved 

of those regulatory responsibilities 

allocated to FINRA under the Plan. 

I. Introduction 

Section 19(g)(1) 4 of the Act, among 

other things, requires every selfregulatory organization (‘‘SRO’’) 

registered as either a national securities 

exchange or registered securities 

association to examine for, and enforce 

compliance by, its members and persons 

associated with its members with the 

Act, the rules and regulations 

thereunder, and the SRO’s own rules, 

unless the SRO is relieved of this 

responsibility pursuant to Section 

17(d) 5 or 19(g)(2) 6 of the Act. Section 

17(d)(1) 7 of the Act was intended, in 

part, to eliminate unnecessary multiple 

examinations and regulatory 

duplication for those broker-dealers that 

maintain memberships in more than one 

SRO (‘‘common members’’). With respect 

to a common member, Section 17(d)(1) 

authorizes the Commission, by rule or 

order, to relieve an SRO of the 

responsibility to receive regulatory 

reports, to examine for and enforce 

compliance with applicable statutes, 

rules, and regulations, or to perform 

other specified regulatory functions. 

To implement Section 17(d)(1), the 

Commission adopted two rules: Rule 

17d–1 and Rule 17d–2 under the Act. 

Rule 17d–2 8 permits SROs to propose 

joint plans for the allocation of 

regulatory responsibilities, other than 

financial responsibility rules, with 

respect to their common members. 

Under paragraph (c) of Rule 17d–2, the 

Commission may declare such a plan 

effective if, after providing for notice 

and comment, it determines that the 

plan is necessary or appropriate in the 

public interest and for the protection of 

investors, to foster cooperation and 

coordination among the SROs, to 

remove impediments to, and foster the 

development of, a national market 

system and a national clearance and 

settlement system, and is in conformity 

with the factors set forth in Section 

17(d) of the Act. Upon effectiveness of 

a plan filed pursuant to Rule 17d–2, an 

SRO is relieved of those regulatory 

responsibilities for common members 

that are allocated by the plan to another 

SRO. 

mstockstill on DSKH9S0YB1PROD with NOTICES

Federal Register / Vol. 75, No. 87 / Thursday, May 6, 2010 / Notices 25005 

9See Securities Exchange Act Release No. 60598 

(September 1, 2009), 74 FR 46280 (September 8, 

2009). 

10See Securities Exchange Act Release No. 60382 

(July 24, 2009), 74 FR 38068 (July 30, 2009). 

11See Securities Exchange Act Release No. 61853 

(April 6, 2010), 75 FR 18925 (April 13, 2010). 

12 15 U.S.C. 78q(d). 13 17 CFR 240.17d–2(c). 14Apparent violations of such ISE rules by any 

Inbound Router Member will be processed by, and 

enforcement proceedings will be conducted by, 

FINRA. 

14a ISE’s other Inbound Router Member, Direct 

Edge ECN LLC, is not addressed by this 17d–2 Plan, 

but is instead addressed in a similar manner under 

a separate, stand-alone plan. See Securities 

Exchange Act Release No. 59134 (December 22, 

2008), 73 FR 79943 (December 30, 2008) (File No. 

4–574) (order declaring effective the 17d–2 plan 

concerning Direct Edge ECN LLC). 

15 17 CFR 200.30–3(a)(34). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

II. Ballista Securities LLC 

On June 5, 2009, ISE Holdings, Inc. 

(‘‘ISE Holdings’’), the parent of ISE, 

entered into a Membership Purchase 

Agreement with Optifreeze LLC 

(‘‘Optifreeze’’). ISE Holdings acquired 

membership interests in Optifreeze by 

contributing cash to the capital of 

Optifreeze. As a result of the purchase, 

ISE Holdings has an 8.57% membership 

interest in Optifreeze, which whollyowns and operates an Electronic Access 

Member of the ISE, Ballista Securities 

LLC (‘‘Ballista’’). The ownership interest 

of ISE Holdings in Ballista is subject to 

the conditions set forth in the 

Commission’s approval order relating to 

ISE Holdings’ purchase of Optifreeze.9

Recognizing that the Commission has 

previously expressed concern regarding 

(1) the potential for conflicts of interest 

in instances where an exchange is 

affiliated with one of its members, and 

(2) the potential for informational 

advantages that could place an affiliated 

member of an exchange at a competitive 

advantage vis-a`-vis the other nonaffiliated members, the ISE submitted a 

proposed rule change to amend ISE Rule 

312 to permit the proposed affiliation 

subject to several conditions and 

limitations, including that a condition 

that the Exchange enter into a plan with 

a non-affiliated self-regulatory 

organization to regulate and oversee the 

activities of Ballista, pursuant to Rule 

17d–2 under the Act.10

On March 19, 2010, the Parties 

submitted the proposed 17d–2 Plan to 

the Commission. On April 13, 2010, the 

Commission published notice of the 

Plan filed by ISE and FINRA in the 

Federal Register.11 The Commission 

received no comments on the Plan. The 

text of the Plan allocates regulatory 

responsibilities among the Parties with 

respect to Ballista, which is a common 

member. Included in the Plan is an 

attachment (the ‘‘ISE Rules Certification 

for 17d–2 Agreement with FINRA,’’ 

referred to herein as the ‘‘Certification’’) 

that lists every ISE rule and federal 

securities law and rule and regulation 

thereunder for which, under the Plan, 

FINRA would bear responsibility for 

examining, and enforcing compliance 

by, Ballista. 

III. Discussion 

The Commission finds that the 

proposed Plan is consistent with the 

factors set forth in Section 17(d) 12 of the 

Act and Rule 17d–2(c) 13 thereunder in 

that the proposed Plan is necessary or 

appropriate in the public interest and 

for the protection of investors, fosters 

cooperation and coordination among 

SROs, and removes impediments to and 

fosters the development of the national 

market system. Among other things, the 

Commission believes that the proposed 

Plan should reduce unnecessary 

regulatory duplication by allocating to 

FINRA certain responsibilities for 

Ballista, a common member, that would 

otherwise be performed by both ISE and 

FINRA. Accordingly, the proposed Plan 

promotes efficiency by reducing costs to 

Ballista. Furthermore, because FINRA 

will be responsible for regulating 

Ballista instead of ISE, the plan should 

promote investor protection and help 

avoid any potential conflicts of interest 

that could arise if ISE was primarily 

responsible for regulating Ballista, with 

which ISE is affiliated. 

The Commission notes that, under the 

Plan, FINRA would assume examination 

and enforcement responsibility relating 

to compliance by Ballista and persons 

associated therewith, with all applicable 

rules. Specifically, FINRA would 

assume examination and enforcement 

responsibility relating to compliance by 

Ballista and persons associated 

therewith, with the rules of ISE that are 

substantially similar to the rules of 

FINRA, as well as any provisions of the 

federal securities laws and the rules and 

regulations thereunder delineated in the 

Exhibit 1 to the 17d–2 Plan (‘‘Common 

Rules’’). In addition, under the Plan, 

FINRA would assume regulatory 

responsibility, with respect to Ballista, 

for all other ISE rules that do not qualify 

as Common Rules, as discussed below, 

on account of Ballista’s status as an 

‘‘Inbound Router Member.’’ 

Under the 17d–2 Plan, ISE would 

retain full responsibility for 

surveillance, examination, investigation, 

and enforcement with respect to trading 

activities or practices involving ISE’s 

own marketplace; registration pursuant 

to its unique rules (i.e., registration rules 

that are not Common Rules); its duties 

as a Designated Examining Authority 

pursuant to Rule 17d–1 under the Act; 

and any rules that are not substantially 

similar to the rules of FINRA, except for 

ISE rules for any ISE member that acts 

as an inbound router for ISE and is a 

member of both ISE and FINRA 

(‘‘Inbound Router Member’’).14 For 

purposes of the proposed 17d–2 Plan, 

Ballista would meet the definition of the 

term ‘‘Inbound Router Member’’ as it is 

used in the plan.14a The effect of these 

provisions is that regulatory oversight 

and enforcement responsibilities for 

Ballista would be vested with FINRA. 

These provisions should help avoid any 

potential conflicts of interest that could 

arise if ISE was primarily responsible 

for regulating Ballista, with which ISE is 

affiliated. 

IV. Conclusion 

This Order gives effect to the Plan 

filed with the Commission in File No. 

4–596. The Parties shall notify all 

members affected by the Plan of their 

rights and obligations under the Plan. 

It is therefore ordered, pursuant to 

Sections 17(d) of the Act, that the Plan 

in File No. 4–596, between ISE and 

FINRA, filed pursuant to Rule 17d–2 

under the Act, is approved and declared 

effective. 

It is therefore ordered that ISE is 

relieved of those responsibilities 

allocated to FINRA under the Plan in 

File No. 4–596. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–10596 Filed 5–5–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–61990; File No. SR– 

NYSEArca–2010–25] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing of Proposed 

Rule Change Amending the Listing and 

Trading of ETFS Palladium Trust and 

ETFS Platinum Trust 

April 27, 2010. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on April 8, 

2010, NYSE Arca, Inc. (‘‘NYSE Arca’’ or 

the ‘‘Exchange’’) filed with the Securities 

and Exchange Commission (the 

mstockstill on DSKH9S0YB1PROD with NOTICES