46126 Federal Register / Vol. 73, No. 153 / Thursday, August 7, 2008 / Notices 

9 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 

that provide for the payment at maturity of a cash 

amount based on the performance of an underlying 

index or indexes of equity securities (an ‘‘Equity 

Reference Asset’’). 

4NYSE Arca Equities Rule 5.2(j)(6)(B)(I)(1)(b)(vi) 

provides that all component securities of the 

underlying index shall be either (A) securities 

(other than foreign country securities and American 

Depository Receipts (‘‘ADRs’’)) that are (x) issued by 

an Act reporting company or by an investment 

company registered under the Investment Company 

Act of 1940, which, in each case, are listed on a 

national securities exchange, and (y) an ‘‘NMS 

stock’’ (as defined in Rule 600 of Regulation NMS) 

or (B) foreign country securities or ADRs, provided 

that foreign country securities or foreign country 

securities underlying ADRs having their primary 

trading market outside the United States on foreign 

trading markets that are not members of the 

Intermarket Surveillance Group (‘‘ISG’’) or parties 

to comprehensive surveillance sharing agreements 

with the Exchange will not in the aggregate 

represent more than 20% of the dollar weight of the 

index. Subject to the pending approval of a separate 

rule filing (Securities Exchange Act Release No. 

58142 (July 11, 2008), 73 FR 41147 (July 17, 2008) 

(SR–NYSEArca–2008–70)), this subsection will be 

renumbered as NYSE Arca Equities Rule 

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

5 17 CFR 240.10A–3. 

6 15 U.S.C. 78a. 

7See, e.g., Securities Exchange Act Release Nos. 

52204 (August 3, 2005), 70 FR 46559 (August 10, 

2005) (SR–PCX–2005–63); 56637 (October 10, 

2007), 72 FR 58704 (October 16, 2007) (SR–

NYSEArca–2007–92); 57132 (January 11, 2008), 73 

FR 3300 (January 17, 2008) (SR–NYSEArca–2007–

125); 56838 (November 26, 2007), 72 FR 67774 

(November 30, 2007) (SR–NYSEArca–2007–118); 

and 56879 (December 3, 2007), 72 FR 69271 

(December 7, 2007) (SR–NYSEArca–2007–110). See 

e-mail from Timothy J. Malinowski, Director, NYSE 

Group, Inc., to Brian O’Neill, Staff Attorney, and 

Edward Cho, Special Counsel, Division of Trading 

and Markets, Commission, dated July 23, 2008. 

should submit only information that 

you wish to make publicly available. All 

submissions should refer to File 

Number SR–NYSE–2008–61 and should 

be submitted on or before August 28, 

2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–18158 Filed 8–6–08; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58276; File No. SR–

NYSEArca–2008–79] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing of Proposed 

Rule Change To List and Trade 

ELEMENTSSM Linked to the CS/RT 

Emerging Infrastructure Total Return 

Index Powered by HOLTTM Due 2023 

July 31, 2008. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) 1 and Rule 19b–4 thereunder,2

notice is hereby given that on July 22, 

2008, NYSE Arca, Inc. (‘‘NYSE Arca’’ or 

‘‘Exchange’’), through its wholly-owned 

subsidiary NYSE Arca Equities, Inc. 

(‘‘NYSE Arca Equities’’), 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 the Exchange. 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 list and 

trade the ELEMENTSSM Linked to the 

CS/RT Emerging Infrastructure Total 

Return Index Powered by HOLTTM due 

2023 (the ‘‘Notes’’), which are linked to 

the CS/RT Emerging Infrastructure Total 

Return Index Powered by HOLTTM (U.S. 

dollar) (the ‘‘Index’’). The text of the 

proposed rule change is available at the 

Exchange, the Commission’s Public 

Reference Room, and 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, 

NYSE Arca included statements 

concerning the purpose of, and basis for, 

the proposed rule change. The text of 

these statements may be examined at 

the places specified in Item IV below. 

NYSE Arca 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 

The Exchange proposes to list and 

trade the Notes, which are linked to the 

Index, under NYSE Arca Equities Rule 

5.2(j)(6), which includes the Exchange’s 

listing standards for Equity IndexLinked Securities.3 The Notes are senior 

unsecured debt obligations of Credit 

Suisse, acting through its Nassau Branch 

(‘‘Credit Suisse’’). The Index is 

comprised of 50 equally-weighted 

exchange-listed emerging infrastructurerelated companies that are chosen 

according to a rules-based methodology 

for scoring stocks (each an ‘‘Index 

Component’’ and, collectively, the 

‘‘Index Components’’). The Index 

enables investors to participate in the 

performance of a selection of companies 

that have a focus on infrastructure, 

power and utilities, or agriculture and 

derive at least 15% of their revenue 

from the Global Emerging Markets 

(‘‘GEM’’). A GEM is defined as any 

country except the United States, 

Canada, Australia, New Zealand, Japan, 

Hong Kong, Singapore, Austria, 

Belgium, Luxembourg, Denmark, 

Finland, France, Germany, Greece, 

Ireland, Italy, the Netherlands, Norway, 

Portugal, Spain, Sweden, and the 

United Kingdom. 

The Exchange is submitting this 

proposed rule change because the Index 

does not meet all of the ‘‘generic’’ listing 

requirements of NYSE Arca Equities 

Rule 5.2(j)(6) applicable to the listing of 

Equity Index-Linked Securities. The 

Index meets all such requirements 

except for those set forth in NYSE Arca 

Equities Rule 5.2(j)(6)(B)(I)(1)(b)(vi).4

The Exchange represents that: (1) Except 

for NYSE Arca Equities Rule 

5.2(j)(6)(B)(I)(1)(b)(vi), the Notes 

currently satisfy all of the generic listing 

standards under NYSE Arca Equities 

Rule 5.2(j)(6) applicable to Equity IndexLinked Securities; (2) the continued 

listing standards under NYSE Arca 

Equities Rule 5.2(j)(6) applicable to 

Equity Index-Linked Securities shall 

apply to the Notes; and (3) Credit Suisse 

is required to comply with Rule 10A–3 5

under the Act 6 for the initial and 

continued listing of the Notes. In 

addition, the Exchange represents that 

the Notes will comply with all other 

requirements applicable to Equity 

Index-Linked Securities including, but 

not limited to, requirements relating to 

the dissemination of key information 

such as the Equity Reference Asset 

value, rules and policies governing the 

trading of equity securities, trading 

hours, trading halts, surveillance, 

firewall, and Information Bulletin to 

ETP Holders, as set forth in prior 

Commission orders approving the 

generic listing rules applicable to the 

listing and trading of Index-Linked 

Securities, generally, and Equity IndexLinked Securities, in particular.7

As of April 30, 2008, the market 

capitalization of the ten largest Index 

Components, accounting for the top 

20% of Index weight, was 

approximately $873.9 billion. The 

highest weighted stock was Vodafone 


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Federal Register / Vol. 73, No. 153 / Thursday, August 7, 2008 / Notices 46127 

8E-mail from Andrew Stevens, Associate General 

Counsel, NYSE Group, Inc., to Brian O’Neill, Staff 

Attorney, and Edward Cho, Special Counsel, 

Division of Trading and Markets, Commission, 

dated July 30, 2008. 

9For a list of the current members and affiliate 

members of ISG, see www.isgportal.com. 

10See Credit Suisse’s Prospectus, as amended, 

filed pursuant to Rule 424(b)(2) under the Act (File 

No. 333–132936–14). 

11 15 U.S.C. 78f(b). 

12 15 U.S.C. 78f(b)(5). 

Group PLC, which accounted for 2% of 

the Index weight, and had a market 

capitalization of approximately $209.6 

billion. 

With respect to NYSE Arca Equities 

Rule 5.2(j)(6)(B)(I)(1)(b)(vi), which 

requires that at least 80% of the 

component stock trade on markets that 

are members of ISG or parties to 

comprehensive surveillance sharing 

agreements with the Exchange, the 

Exchange has attempted to, but to date 

has not been able to, enter into 

comprehensive surveillance sharing 

agreements with markets on which 

approximately 36% of the Index 

Components trade. Specifically, the 

Exchange does not have comprehensive 

surveillance sharing agreements with 

Euronext Amsterdam (2%), Euronext 

Lisbon (2%), Euronext Paris (6%), JSE 

Securities Exchange (Johannesburg) 

(6%), Borsa Italiana (Milan) (4%), 

Prague Stock Exchange (2%), Bovespa 

(State of Sa ̃o Paulo Stock Exchange) 

(4%), Singapore Stock Exchange (2%), 

and Bolsa de Madrid (8%), and these 

markets are not members of ISG. 

Accordingly, the Exchange may not be 

able to obtain surveillance information 

from the noted exchanges regarding the 

relevant component stocks. 

The Exchange intends to utilize its 

existing surveillance procedures 

applicable to derivative products, 

including Equity Index-Linked 

Securities, to monitor trading in the 

Notes.8 The Exchange represents that 

these procedures are adequate to 

properly monitor Exchange trading of 

the Notes in all trading sessions and to 

deter and detect violations of Exchange 

rules. The Exchange’s current trading 

surveillance focuses on detecting 

securities trading outside their normal 

patterns. When such situations are 

detected, surveillance analysis follows 

and investigations are opened, where 

appropriate, to review the behavior of 

all relevant parties for all relevant 

trading violations. The Exchange may 

obtain information via the ISG from 

other exchanges who are members or 

affiliates of the ISG.9

Notwithstanding the Notes’ inability 

to meet the requirements of NYSE Arca 

Equities Rule 5.2(j)(6)(B)(I)(1)(b)(vi), the 

Exchange believes that the underlying 

index is sufficiently broad-based in 

scope and, as such, is less susceptible to 

manipulation: The index contains 50 

companies, listed in 23 countries with 

no one exchange listing greater than 8% 

of the companies which is not covered 

by a comprehensive surveillance 

sharing agreement. The Exchange 

further believes that no one security 

dominates the underlying index, 

thereby serving to protect the public 

interest and promote capital formation. 

Detailed descriptions of the Notes, the 

Index (including the methodology used 

to determine the composition of the 

Index), fees, redemption procedures and 

payment at redemption, payment at 

maturity, taxes, and risk factors relating 

to the Notes will be available in the 

Prospectus 10 or on the Web site for the 

Notes (www.credit-suisse.com), as 

applicable. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) 11 of the Act, in general, and 

Section 6(b)(5),12 in particular, in that it 

is designed to prevent fraudulent and 

manipulative acts and practices, to 

promote just and equitable principles of 

trade, to foster cooperation and 

coordination with persons engaged in 

facilitating transactions in securities, 

and to remove impediments to and 

perfect the mechanisms of a free and 

open market and a national market 

system. The Exchange believes that it 

has developed adequate trading rules, 

procedures, surveillance programs, and 

listing standards for the initial and 

continued listing and trading of the 

Notes, which promote investor 

protection in the public interest. In 

addition, the Notes satisfy all 

requirements of NYSE Arca Equities 

Rule 5.2(j)(6), with the single exception 

noted above. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

NYSE Arca does not believe that the 

proposed rule change will impose any 

burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. 

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 

Within 35 days of the date of 

publication of this notice in the Federal 

Register or within such longer period (i) 

as the Commission may designate up to 

90 days of such date if it finds such 

longer period to be appropriate and 

publishes its reasons for so finding or 

(ii) as to which the Exchange consents, 

the Commission will: 

A. By order approve such proposed 

rule change, or 

B. Institute proceedings to determine 

whether the proposed rule change 

should be disapproved. 

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 (www.sec.gov/rules/ 

sro.shtml); or 

• Send an e-mail to rulecomments@sec.gov. Please include File 

Number SR–NYSEArca–2008–79 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–NYSEArca–2008–79. 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 (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 the filing also will be available 

for inspection and copying at the 


sroberts on PROD1PC70 with NOTICES
46128 Federal Register / Vol. 73, No. 153 / Thursday, August 7, 2008 / Notices 

13 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 2 15 U.S.C. 78q–1. 

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–NYSEArca–2008–79 and 

should be submitted on or before 

August 28, 2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–18156 Filed 8–6–08; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58252; File No. SR–DTC–

2008–05] 

Self-Regulatory Organizations; The 

Depository Trust Company; Notice of 

Filing of a Proposed Rule Change 

Relating to Establishing a New Money 

Market Instrument Procedure 

Disincentive Fee 

July 30, 2008. 

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

Securities Exchange Act of 1934 

(‘‘Act’’),1 notice is hereby given that on 

June 5, 2008, The Depository Trust 

Company (‘‘DTC’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) and on July 16, 2008, 

amended the proposed rule change and 

as described in Items I, II, and III below, 

which Items have been prepared 

primarily by DTC. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change, 

as amended, from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The proposed rule change would 

establish a new disincentive fee for 

DTC’s Money Market Instrument 

(‘‘MMI’’) settlement services. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

DTC 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. DTC 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 

The purpose of the proposed rule 

change is to add a new $10,000 

disincentive fee for ‘‘reversal of a failure 

or refusal to pay instruction’’ that will 

be listed in DTC’s fee schedule for 

settlement services under the heading 

‘‘Money Market Instruments (MMI) by 

Book Entry Only.’’

As background, DTC automatically 

sweeps all maturing money market 

instruments’ (‘‘MMIs’’) positions each 

morning from investors’ custodian 

accounts and generates the appropriate 

maturity payment (‘‘MP’’). The MMIs 

are then delivered to the account of the 

appropriate issuer paying agent (‘‘IPA’’). 

DTC debits the IPA’s account in the 

amount of the MP for settlement that 

day and credits the same MP amount to 

the investor’s custodian account for 

payment that day to the investor. 

However, because MPs are processed 

automatically and randomly against the 

IPA’s DTC account, IPAs can refuse to 

pay a specific issuer’s MP if that issuer 

defaults on its obligation to the IPA. An 

IPA that refuses payment on an MMI 

must communicate its intention to do so 

to DTC by using the MP Refusal 

function on DTC’s Participant Terminal 

System (‘‘PTS’’). This communication is 

referred to as an Issuer Failure/Refusal 

to Pay and it allows the paying agent to 

enter refusal to pay notifications for a 

particular defaulting issuer through PTS 

until 3:00 p.m., eastern time, on the 

maturity date. The paying agent 

understands that entering such a 

notification will cause DTC to follow its 

Defaulting Issuer procedures, which 

include devaluing the collateral value of 

all of the defaulting issuer’s MMIs to 

zero, reversing all of the issuer’s 

issuances and maturities processed that 

day, notifying DTC participants of the 

default, and blocking all further 

issuances by the issuer from entering 

DTC. If, thereafter, an IPA contacts DTC 

to complete all of the transactions that 

it previously cancelled through the MP 

Refusal Function, DTC must undo all 

the actions it took under its Defaulting 

Issuer procedures. This process of 

reversing a refusal or failure to pay 

instruction and effectively resettling the 

security is an operational burden to DTC 

and of great financial concern to 

investors and their custodians. 

Accordingly, DTC is proposing to 

implement a disincentive $10,000 fee to 

each IPA that requests such reversal. 

Additionally, DTC expects such fee to 

serve as a disincentive to IPAs that 

request such reversal. 

DTC states that the proposed rule 

change is consistent with the 

requirements of Section 17A of the Act 2

and the rules and regulations 

thereunder applicable to DTC because 

the disincentive fee is designed to deter 

the practice of requesting a refusal or 

failure to pay instruction, thereby 

promoting the prompt and accurate 

clearance and settlement of securities 

transactions. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

DTC does not believe that the 

proposed rule change will have any 

impact or impose any burden on 

competition. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

Written comments relating to the 

proposed rule change have not yet been 

solicited or received. DTC will notify 

the Commission of any written 

comments it receives. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within thirty-five days of the date of 

publication of this notice in the Federal 

Register or within such longer period (i) 

as the Commission may designate up to 

ninety days of such date if it finds such 

longer period to be appropriate and 

publishes its reasons for so finding or 

(ii) as to which the self-regulatory 

organization consents, the Commission 

will: 

(A) By order approve such proposed 

rule change or 

(B) Institute proceedings to determine 

whether the proposed rule change 

should be disapproved. 

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 


sroberts on PROD1PC70 with NOTICES