47996 Federal Register / Vol. 73, No. 159 / Friday, August 15, 2008 / Notices 

5 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

to another exchange which, in the case 

of NYSE Arca, is currently under 

common ownership with the Exchange, 

and, in the case of NYSE Alternext U.S. 

will, upon consummation of the 

acquisition, be under the same 

ownership as the Exchange. The 

Exchange believes that the fee waiver is 

not unfairly discriminatory and does not 

constitute an inequitable allocation of 

fees because the same regulatory staff 

will review securities on all three 

markets and the Exchange will therefore 

benefit from regulatory efficiencies 

arising out of NYSE Regulation’s prior 

examination of any companies that 

transfer. The Exchange believes that the 

application of the waiver to companies 

transferring to the NYSE from Amex 

prior to the Merger is not unfairly 

discriminatory and does not constitute 

an inequitable allocation of fees because 

the annual fee revenue collected by the 

Amex from these companies will be 

available to NYSE Regulation to finance 

its regulatory oversight of those 

companies after the Merger. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purpose of the Exchange Act. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants or Others 

The Exchange has neither solicited 

nor received written comments on 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 self-regulatory 

organization consents, the Commission 

will: 

(A) By order approve the 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 e-mail to rulecomments@sec.gov. Please include File 

Number SR–NYSE–2008–74 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–NYSE–2008–74. 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, on official business days between 

the hours of 10 a.m. and 3 p.m. Copies 

of the filing will also be available for 

inspection and copying at the principal 

office of the NYSE. 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–NYSE–

2008–74 and should be submitted by 

September 5, 2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.5

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–18893 Filed 8–14–08; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58332; File No. SR–

NYSEArca–2008–51] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing of Proposed 

Rule Change and Amendment No. 1 

Thereto To Adopt Generic Listing and 

Trading Rules for Commodity-Based 

Trust Shares, Currency Trust Shares, 

and Commodity Index Trust Shares 

August 8, 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 June 13, 

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. On August 5, 

2008, NYSE Arca filed Amendment No. 

1 to the proposed rule change. 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 Exchange proposes to amend 

NYSE Arca Equities Rules 8.201 

(Commodity-Based Trust Shares), 8.202 

(Currency Trust Shares), and 8.203 

(Commodity Index Trust Shares) to 

adopt generic listing and trading rules 

for such securities. The text of the 

proposed rule change is available at the 

Exchange, the Commission’s Public 

Reference Room, and http:// 

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, the 

Exchange 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. The 

Exchange has prepared summaries, set 

forth in Sections A, B, and C below, of 

the most significant aspects of such 

statements. 

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Federal Register / Vol. 73, No. 159 / Friday, August 15, 2008 / Notices 47997 

3See Securities Exchange Act Release No. 51067 

(January 21, 2005), 70 FR 3952 (January 27, 2005) 

(SR–PCX–2004–132) (approving NYSE Arca 

Equities Rule 8.201 and the trading of shares of the 

iShares COMEX Gold Trust pursuant to UTP). 

4See Securities Exchange Act Release No. 53253 

(February 8, 2006), 71 FR 8029 (February 15, 2006) 

(SR–PCX–2005–123) (approving NYSE Arca 

Equities Rule 8.202 and the trading of shares of the 

Euro Currency Trust pursuant to UTP). 

5See Securities Exchange Act Release No. 54025 

(June 21, 2006), 71 FR 36856 (June 28, 2006) (SR–

NYSEArca–2006–12) (approving NYSE Arca 

Equities Rule 8.203 and the trading of shares of the 

iShares GSCI Commodity-Indexed Trust pursuant 

to UTP). 

6 17 CFR 240.19b–4(e). 

7 17 CFR 240.19b–4(c)(1). 

8 17 U.S.C. 78s(b). 

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

10See 17 CFR 240.19b–4(e)(2)(ii); 17 CFR 

249.820. 

11The Commission has previously approved 

issues of Commodity-Based Trust Shares for listing 

and trading. See, e.g., Securities Exchange Act 

Release Nos. 50603 (October 28, 2004), 69 FR 64614 

(November 5, 2004) (SR–NYSE–2004–22) 

(approving the listing and trading of shares of the 

streetTRACKS Gold Trust); 51058 (January 19, 

2005), 70 FR 3749 (January 26, 2005) (SR–Amex–

2004–38) (approving the listing and trading of 

shares of the iShares COMEX Gold Trust); 53521 

(March 20, 2006), 71 FR 14967 (March 24, 2006) 

(SR–Amex–2005–072) (approving the listing and 

trading of shares of the iShares Silver Trust); and 

56041 (July 11, 2007), 72 FR 39114 (July 17, 2007) 

(SR–NYSEArca–2007–43) (granting accelerated 

approval to list and trade shares of the iShares 

COMEX Gold Trust). E-mail from Michael Cavalier, 

Associate General Counsel, NYSE Euronext, to 

Edward Cho, Special Counsel, and Steven Varholik, 

Staff Attorney, Division of Trading and Markets, 

Commission, dated June 18, 2008 (confirming the 

types of securities that were approved for listing 

and trading under NYSE Arca Equities Rule 8.201). 

12The Exchange notes that the proposed 100,000- 

share minimum is the same as the requirement in 

Commentary .01(d) of NYSE Arca Equities Rule 

5.2(j)(3) applicable to Investment Company Units 

(‘‘Units’’), which provides that a minimum of 

100,000 shares of a series of Units is required to be 

outstanding at the commencement of trading. In 

addition, the 100,000-share minimum is 

comparable to requirements previously applied to 

series of Units approved by the Commission for 

exchange listing pursuant to section 19(b)(2) of the 

Act. See, e.g., Securities Exchange Act Release No. 

52816 (November 21, 2005), 70 FR 71574, 71578 

n.19 and accompanying text (November 29, 2005) 

(SR–NYSE–2005–70) (approving the listing and 

trading of shares of the iShares Index Funds and 

noting that the Exchange has required a minimum 

number of 100,000 shares of Units to be outstanding 

in connection with the initial listing of shares of the 

iShares FTSE/Xinhua China 25 Index Fund, which 

the Commission noted to be comparable to 

requirements previously applied to other listed 

series of Units). 

13Pursuant to NYSE Arca Equities Rule 7.34(a), 

the NYSE Arca Marketplace will have three trading 

sessions each day the Exchange is open for business 

unless otherwise determined by the Exchange: 

Opening Session—begins at 1:00:00 a.m. (Pacific 

Time) and concludes at the commencement of the 

Core Trading Session. The Opening Auction and 

the Market Order Auction shall occur during the 

Opening Session. 

Core Trading Session—begins at 6:30:00 a.m. 

(Pacific Time) or at the conclusion of the Market 

Order Auction, whichever comes later, and 

concludes at 1:00:00 p.m. (Pacific Time). 

Late Trading Session—begins following the 

conclusion of the Core Trading Session and 

concludes at 5:00:00 p.m. (Pacific Time). 

14The term ‘‘Authorized Participant’’ generally is 

defined in prospectuses for issues of CommodityBased Trust Shares, Currency Trust Shares, and 

Commodity Index Trust Shares as an entity that (1) 

is a registered broker-dealer, or other securities 

market participant such as a bank or other financial 

institution that is not required to register as a 

broker-dealer to engage in securities transactions; 

(2) is a Depository Trust Company participant; and 

(3) has entered into an Authorized Participant 

Agreement with the trust. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange currently has rules 

permitting the listing and trading, 

including trading pursuant to unlisted 

trading privileges (‘‘UTP’’), of 

Commodity-Based Trust Shares (NYSE 

Arca Equities Rule 8.201),3 Currency 

Trust Shares (NYSE Arca Equities Rule 

8.202),4 and Commodity Index Trust 

Shares (NYSE Arca Equities Rule 

8.203).5 The Exchange proposes to 

amend NYSE Arca Equities Rules 8.201, 

8.202, and 8.203 to include provisions 

for the listing and trading (including 

trading pursuant to UTP) of CommodityBased Trust Shares, Currency Trust 

Shares, and Commodity Index Trust 

Shares, respectively (collectively, the 

‘‘Shares’’), pursuant to Rule 19b–4(e) 

under the Act.6

Generic Listing Standards 

Rule 19b–4(e) 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 section (c)(1) of Rule 19b–

4,7 if the Commission has approved, 

pursuant to section 19(b) of the Act,8 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. The Exchange proposes to adopt 

generic listing standards under 

amended NYSE Arca Equities Rules 

8.201, 8.202, and 8.203 for the Shares 

pursuant to which it would be able to 

trade such securities without 

Commission approval of each 

individual product pursuant to section 

19(b)(2) of the Act.9 The Exchange 

represents that any securities it lists 

and/or trades pursuant to NYSE Arca 

Equities Rule 8.201, 8.202, or 8.203 will 

satisfy the standards set forth therein. 

The Exchange states that, within five 

business days after commencement of 

trading of a security pursuant to NYSE 

Arca Equities Rule 8.201, 8.202 or 8.203, 

as proposed to be amended, the 

Exchange will file a Form 19b–4(e).10

Commodity-Based Trust Shares 

The Exchange proposes to amend 

Commentary .04 to NYSE Arca Equities 

Rule 8.201 to incorporate generic listing 

and trading standards for CommodityBased Trust Shares.11 In addition to the 

general requirements of NYSE Arca 

Equities Rule 8.201, Commodity-Based 

Trust Shares listed on the Exchange 

pursuant to Rule 19b–4(e) must satisfy 

the following initial listing criteria. For 

a series of Commodity-Based Trust 

Shares listed on the Exchange, a 

minimum of 100,000 shares is required 

to be outstanding at the commencement 

of trading.12 In addition, for both listed 

Commodity-Based Trust Shares and 

those traded pursuant to UTP: (1) The 

value of the commodity held by the 

applicable trust must be disseminated 

by one or more major market data 

vendors on at least a 15-second delayed 

basis; (2) the Indicative Trust Value 

must be calculated and widely 

disseminated by the Exchange or one or 

more major market data vendors on at 

least a 15-second basis during the Core 

Trading Session as defined in NYSE 

Arca Equities Rule 7.34; 13 and (3) the 

Exchange will implement written 

surveillance procedures applicable to 

Commodity-Based Trust Shares. 

The Exchange proposes to amend 

NYSE Arca Equities Rule 8.201(c)(1) to 

provide that Commodity-Based Trust 

Shares may be redeemed at the request 

of an Authorized Participant (as defined 

in the trust’s prospectus) by the trust, 

which will deliver to the redeeming 

Authorized Participant the quantity of 

the underlying commodity.14 The 

references to redemption ‘‘at the 

holder’s request’’ and delivery of the 

underlying commodity to the ‘‘holder’’

would be deleted. This amendment 

reflects the fact that it is the Authorized 

Participant that actually makes the 

redemption request and receives the 

specified proceeds upon redemption, 

and that a beneficial holder other than 

an Authorized Participant must utilize 

an Authorized Participant to effect a 

redemption. This rationale also applies 

to insertion of the term ‘‘Authorized 

Participant’’ in NYSE Arca Equities 

Rules 8.202 and 8.203, as described 

below. 

The Exchange also proposes to delete 

the provision in NYSE Arca Equities 

Rule 8.201(e)(2)(iv) which provides that 

the Exchange will consider the 

suspension of trading or removal from 

listing of a series of Commodity-Based 

Trust Shares if the Exchange stops 

providing a hyperlink on its Web site to 

the updated value of the underlying 

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47998 Federal Register / Vol. 73, No. 159 / Friday, August 15, 2008 / Notices 

15The Commission has previously approved a 

number of issues of Currency Trust Shares for 

listing and trading. See, e.g., Securities Exchange 

Act Release Nos. 52843 (November 28, 2005), 70 FR 

72486 (December 5, 2005) (SR–NYSE 2005–65) 

(granting accelerated approval for the listing and 

trading of shares of the CurrencyShares Euro Trust); 

54020 (June 20, 2006), 71 FR 36579 (June 27, 2006) 

(SR–NYSE–2006–35) (granting accelerated approval 

for the listing and trading of shares of the 

CurrencyShares Australian Dollar Trust, 

CurrencyShares British Pound Sterling Trust, 

CurrencyShares Canadian Dollar Trust, 

CurrencyShares Mexican Peso Trust, 

CurrencyShares Swedish Krona Trust, and 

CurrencyShares Swiss Franc Trust); 55268 

(February 9, 2007), 72 FR 7793 (February 20, 2007) 

(SR–NYSE–2007–03) (granting accelerated approval 

for the listing and trading of shares of the 

CurrencyShares Japanese Yen Trust); and 56131 

(July 25, 2007), 72 FR 42212 (August 1, 2007) (SR–

NYSEArca–2007–57) (granting accelerated approval 

for the listing and trading of shares of the 

CurrencyShares Trusts). 

16See supra note 12. 

17The Commission has previously approved a 

number of issues of Commodity Index Trust Shares 

for listing and trading. See, e.g., Securities 

Exchange Act Release Nos. 54013 (June 16, 2006), 

71 FR 36372 (June 26, 2006) (SR–NYSE–2006–17) 

(approving the listing and trading of shares of the 

iShares GSCI Trust); 55585 (April 5, 2007), 72 FR 

18500 (April 12, 2007) (SR–NYSE–2006–75) 

(approving the listing and trading of shares of the 

iShares GS Commodity Light Energy Indexed Trust; 

iShares GS Commodity Industrial Metals Indexed 

Trust; iShares GS Commodity Livestock Indexed 

commodity. The Exchange believes such 

information is widely available from 

market data vendors and an Exchange 

hyperlink is not necessary to provide 

investors with access to such 

information. 

Proposed Commentary .05 to NYSE 

Arca Equities Rule 8.201 provides that 

Commodity-Based Trust Shares will be 

subject to the Exchange’s equity trading 

rules. Proposed Commentary .06 to 

NYSE Arca Equities Rule 8.201 provides 

that if the Indicative Trust Value or 

value of the commodity applicable to a 

series of Commodity-Based Trust Shares 

is not being disseminated as required, 

the Exchange may halt trading during 

the day on which such interruption first 

occurs. If such interruption persists past 

the trading day in which it occurred, the 

Exchange will halt trading no later than 

the beginning of the trading day 

following the interruption. If the 

Exchange becomes aware that the net 

asset value (‘‘NAV’’) applicable to a 

series of Commodity-Based Trust Shares 

is not being disseminated to all market 

participants at the same time, it will halt 

trading in such series until such time as 

the NAV is available to all market 

participants. 

Currency Trust Shares 

The Exchange proposes to amend the 

definition of the term ‘‘Currency Trust 

Shares’’ in NYSE Arca Equities Rule 

8.202(c) to provide that such shares may 

be issued by a trust that holds more than 

one non-U.S. currency. In addition, 

NYSE Arca Equities Rule 8.202(c) 

would be amended to provide that 

Currency Trust Shares may be 

surrendered by an Authorized 

Participant (as defined in the trust’s 

prospectus) to the trust, which will 

deliver to the redeeming Authorized 

Participant the specified non-U.S. 

currency or currencies. The reference to 

the surrender of Currency Trust Shares 

by the beneficial owner would be 

deleted. NYSE Arca Equities Rule 

8.202(d), relating to the designation of 

the non-U.S. currency, is proposed to be 

amended to clarify the rule’s application 

to an issue of Currency Trust Shares that 

holds more than one non-U.S. currency. 

Commentary .01 to NYSE Arca Equities 

Rule 8.202 also would be amended to 

clarify that Currency Trust Shares are 

Trust Issued Receipts that can hold 

multiple currencies. 

The Exchange proposes to amend 

Commentary .04 to NYSE Arca Equities 

Rule 8.202 to incorporate generic listing 

and trading standards for Currency 

Trust Shares.15 In addition to the 

general requirements of NYSE Arca 

Equities Rule 8.202, Currency Trust 

Shares listed on the Exchange must 

satisfy the following initial listing 

criteria. For each series of Currency 

Trust Shares, a minimum of 100,000 

shares of a series of Currency Trust 

Shares is required to be outstanding at 

the commencement of trading.16 In 

addition, for both listed Currency Trust 

Shares and those traded pursuant to 

UTP: (1) The value of the applicable 

non-U.S. currency must be disseminated 

by one or more major market data 

vendors on at least a 15-second delayed 

basis; (2) the Indicative Trust Value 

must be calculated and widely 

disseminated by the Exchange or one or 

more major market data vendors on at 

least a 15-second basis during the Core 

Trading Session as defined in NYSE 

Arca Equities Rule 7.34; and (3) the 

Exchange will implement written 

surveillance procedures applicable to 

Currency Trust Shares. 

Proposed Commentary .05 to NYSE 

Arca Equities Rule 8.202 provides 

certain ‘‘firewall’’ requirements where 

the value of a Currency Trust Share is 

based in whole or in part on an index 

that is maintained by a broker-dealer, as 

well as requirements on any advisory 

committee, supervisory board, or similar 

entity that advises or that makes certain 

decisions regarding the index, similar to 

the requirements currently specified in 

Commentary .01(b)(1) to NYSE Arca 

Equities Rule 5.2(j)(3). 

Proposed Commentary .06 to NYSE 

Arca Equities Rule 8.202 provides that 

Currency Trust Shares will be subject to 

the Exchange’s equity trading rules. 

Proposed Commentary .07 to NYSE 

Arca Equities Rule 8.202 provides that, 

if the Indicative Trust Value or the value 

of the currency, currencies, or currency 

index applicable to a series of Currency 

Trust Shares is not being disseminated 

as required, the Exchange may halt 

trading during the day on which such 

interruption first occurs. If such 

interruption persists past the trading 

day in which it occurred, the Exchange 

will halt trading no later than the 

beginning of the trading day following 

the interruption. If the Exchange 

becomes aware that the NAV applicable 

to a series of Currency Trust Shares is 

not being disseminated to all market 

participants at the same time, it will halt 

trading in such series until such time as 

the NAV is available to all market 

participants. 

Commodity Index Trust Shares 

The Exchange proposes to amend the 

definition of the term ‘‘Commodity 

Index Trust Shares’’ in NYSE Arca 

Equities Rule 8.203(c) to accommodate 

shares issued by a trust that holds 

commodities included in an index or 

portfolio, as well as a trust that holds 

commodity futures on a specified index 

or portfolio, or that holds interests in a 

commodity pool that holds commodity 

futures or interests in a commodity pool 

as defined in the Commodity Exchange 

Act, and is managed by a commodity 

pool operator registered with the 

Commodity Futures Trading 

Commission. In addition, NYSE Arca 

Equities Rule 8.203(c) would be 

amended to provide that Commodity 

Index Trust Shares may be surrendered 

to the trust by an Authorized Participant 

(as defined in the trust’s prospectus), 

which will deliver to the redeeming 

Authorized Participant the specified 

proceeds. The reference to surrender of 

Commodity Index Trust Shares by the 

beneficial owner would be deleted. 

The Exchange also proposes to amend 

Commentary .01 to NYSE Arca Equities 

Rule 8.203 to provide that a Commodity 

Index Trust Share is a Trust Issued 

Receipt that holds commodities 

included in, or long positions in futures 

contracts on a specified commodity 

index or portfolio, or interests in a 

commodity pool which, in turn, holds 

such commodities or long positions, 

deposited with the applicable trust. 

Commentary .04 to NYSE Arca Equities 

Rule 8.203 would be amended to 

incorporate generic listing and trading 

standards for Commodity Index Trust 

Shares.17

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Trust; and iShares GS Commodity Non-Energy 

Indexed Trust); 56932 (December 7, 2007), 72 FR 

71178 (December 14, 2007) (SR–NYSEArca–2007–

112) (granting accelerated approval for the listing 

and trading of shares of the S&P GSCI CommodityIndexed Trust); and 57456 (March 7, 2008), 73 FR 

13599 (March 13, 2008) (SR–NYSEArca–2007–91) 

(granting accelerated approval for the listing and 

trading of shares of the iShares S&P GSCI Energy 

Commodity-Indexed Trust; iShares S&P GSCI 

Natural Gas Commodity-Indexed Trust; iShares S&P 

GSCI Industrial Metals Commodity-Indexed Trust; 

iShares S&P GSCI Light Energy Commodity-Indexed 

Trust; iShares S&P GSCI Livestock CommodityIndexed Trust; and iShares S&P GSCI Non-Energy 

Commodity-Indexed Trust). 

18See supra note 12. 

19 15 U.S.C. 78s(b)(2). 20 17 U.S.C. 78s(b)(2). 21See supra note 13. 

In addition to the general 

requirements of NYSE Arca Equities 

Rule 8.203, Commodity Index Trust 

Shares listed on the Exchange must 

satisfy the following initial listing 

criteria: (1) A minimum of 100,000 

shares of a series of Commodity Index 

Trust Shares is required to be 

outstanding at the commencement of 

trading;18 and (2) the issue must meet 

one of the following initial listing 

standards: (a) The commodities 

included in a specified commodity 

index, long positions in futures 

contracts on a specified commodity 

index, or interests in a commodity pool 

which, in turn, holds such long 

positions held by the applicable trust 

shall have been reviewed or approved 

for the trading of Commodity-Linked 

Securities, Commodity Index Trust 

Shares or options or other derivatives by 

the Commission under section 19(b)(2) 

of the Act 19 and rules thereunder, and 

the conditions set forth in the 

Commission’s approval order, including 

with respect to comprehensive 

surveillance sharing agreements, 

continue to be satisfied; or (b) with 

respect to trusts holding long positions 

in futures contracts on a specified 

commodity index, or interests in a 

commodity pool which, in turn, holds 

such long positions, the pricing 

information for index components must 

be derived from a market which is an 

Intermarket Surveillance Group (‘‘ISG’’) 

member or with which the Exchange 

has a comprehensive surveillance 

sharing agreement. An index may 

include components representing not 

more than 10% of the dollar weight of 

such index for which the pricing 

information is derived from markets that 

do not meet such requirements; 

provided, however, that no single 

component subject to this exception 

exceeds 7% of the dollar weight of the 

applicable index. 

In addition, for both listed 

Commodity Index Trust Shares and 

those traded pursuant to UTP: (1) The 

value of the applicable underlying index 

or portfolio must be disseminated by 

one or more major market data vendors 

on at least a 15-second delayed basis 

and, with respect to trusts holding 

commodities included in a specified 

index or portfolio, the applicable 

commodity spot price or prices must be 

disseminated by one or more major 

market data vendors on at least a 

15-second delayed basis; (2) the 

Indicative Trust Value must be 

calculated and widely disseminated by 

the Exchange or one or more major 

market data vendors on at least a 15- 

second basis during the Core Trading 

Session as defined in NYSE Arca 

Equities Rule 7.34; and (3) the Exchange 

will implement written surveillance 

procedures applicable to Commodity 

Index Trust Shares. 

Proposed Commentary .05 to NYSE 

Arca Equities Rule 8.203 provides 

certain ‘‘firewall’’ requirements where 

the value of a Commodity Index Trust 

Share is based in whole or in part on an 

index that is maintained by a brokerdealer, as well as requirements on any 

advisory committee, supervisory board, 

or similar entity that advises or that 

makes certain decisions regarding the 

index, similar to the requirements 

specified in Commentary .01(b)(1) to 

NYSE Arca Equities Rule 5.2(j)(3). 

Proposed Commentary .06 to NYSE 

Arca Equities Rule 8.203 provides that 

Commodity Index Trust Shares will be 

subject to the Exchange’s equity trading 

rules. Proposed Commentary .07 to 

NYSE Arca Equities Rule 8.203 provides 

that, if the Indicative Trust Value, the 

value of the underlying index or 

portfolio, or the commodity spot price 

or prices applicable to a series of 

Commodity Index Trust Shares is not 

being disseminated as required, the 

Exchange may halt trading during the 

day on which such interruption first 

occurs. If such interruption persists past 

the trading day in which it occurred, the 

Exchange will halt trading no later than 

the beginning of the trading day 

following the interruption. If the 

Exchange becomes aware that the NAV 

applicable to a series of Commodity 

Index Trust Shares is not being 

disseminated to all market participants 

at the same time, it will halt trading in 

such series until such time as the NAV 

is available to all market participants. 

Proposed NYSE Arca Equities Rules 

8.201(j), 8.202(j), and 8.203(j) each also 

provide that the Exchange may submit 

a rule filing pursuant to Section 19(b)(2) 

of the Act 20 to permit the listing and 

trading of Commodity-Based Trust 

Shares, Currency Trust Shares, and 

Commodity Based Trust Shares, 

respectively, that do not otherwise meet 

the standards set forth in proposed 

Commentary .04 to each such rule. 

Trading Rules Applicable to the Shares 

The Shares will be subject to all 

Exchange rules governing the trading of 

equity securities. The Exchange’s equity 

margin rules will apply to transactions 

in the Shares. Shares will trade during 

trading hours set forth in NYSE Arca 

Equities Rule 7.34(a).21

Surveillance 

The Exchange intends to utilize its 

existing surveillance procedures 

applicable to derivative products, 

including Commodity-Based Trust 

Shares, Currency Trust Shares, and 

Commodity Index Trust Shares, to 

monitor trading in the Shares. The 

Exchange represents that these 

procedures are adequate to properly 

monitor Exchange trading of the Shares 

in all trading sessions and to deter and 

detect violations of Exchange rules or 

applicable federal securities laws. 

The Exchange’s current trading 

surveillance focuses on detecting when 

securities trade 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 notes that components 

underlying Commodity-Based Trust 

Shares, Currency Trust Shares, and 

Commodity Index Trust Shares are 

based on spot prices of the relevant 

commodity or currency, as the case may 

be, and such underlying commodities or 

currencies are traded in over-thecounter markets rather than on 

exchanges. In addition, as noted above, 

with respect to Commodity Index Trust 

Shares, where the trust holds long 

positions in futures contracts on a 

specified commodity index, or interests 

in a commodity pool which, in turn, 

holds such long positions, the pricing 

information for index components must 

be derived from a market which is an 

ISG member or with which the 

Exchange has a comprehensive 

surveillance sharing agreement. An 

index may include components 

representing not more than 10% of the 

dollar weight of such index for which 

the pricing information is derived from 

markets that do not meet such 

requirements; provided, however, that 

no single component subject to this 

exception can exceed 7% of the dollar 

weight of the applicable index. 

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48000 Federal Register / Vol. 73, No. 159 / Friday, August 15, 2008 / Notices 

22For a list of current members of the ISG, see 

http://www.isgportal.org. 

23See NYSE Arca Equities Rule 1.1(n). 

24NYSE Arca Equities Rule 9.2(a) (Diligence as to 

Accounts) provides that ETP Holders, before 

recommending a transaction, must have reasonable 

grounds to believe that the recommendation is 

suitable for the customer based on any facts 

disclosed by the customer as to his other security 

holdings and as to his financial situation and needs. 

Further, the rule provides, with a limited exception, 

that prior to the execution of a transaction 

recommended to a non-institutional customer, the 

ETP Holder shall make reasonable efforts to obtain 

information concerning the customer’s financial 

status, tax status, investment objectives, and any 

other information that the ETP Holder believes 

would be useful to make a recommendation. 

25 15 U.S.C. 78f(b). 

26 15 U.S.C. 78f(b)(5). 

The Exchange states that it may also 

obtain information via ISG from other 

exchanges who are members of the 

ISG.22 In addition, the Exchange also 

has a general policy prohibiting the 

distribution of material, non-public 

information by its employees. 

Information Bulletin 

Prior to the commencement of 

trading, the Exchange will inform its 

ETP Holders 23 in an Information 

Bulletin of the special characteristics 

and risks associated with trading an 

issue of Commodity-Based Trust Shares, 

Currency Trust Shares, or Commodity 

Index Trust Shares. Specifically, the 

Information Bulletin will discuss the 

following: (1) The procedures for 

purchases and redemptions of Shares; 

(2) NYSE Arca Equities Rule 9.2(a),24

which imposes a duty of due diligence 

on ETP Holders to learn the essential 

facts relating to every customer prior to 

trading an issue of Shares; (3) how 

information regarding the Indicative 

Trust Value is disseminated; (4) the 

risks involved in trading an issue of 

Shares during the Opening and Late 

Trading Sessions when an updated 

Indicative Trust Value will not be 

calculated or publicly disseminated; (5) 

the requirement that ETP Holders 

deliver a prospectus to investors 

purchasing newly issued Shares prior to 

or concurrently with the confirmation of 

a transaction; and (6) trading 

information. The Information Bulletin 

will advise ETP Holders, prior to the 

commencement of trading, of the 

prospectus delivery requirements 

applicable to the relevant issue of 

Shares. The Exchange notes that 

investors purchasing Shares directly 

from the applicable trust will receive a 

prospectus; ETP Holders purchasing 

Shares from the trust for resale to 

investors will deliver a prospectus to 

such investors. 

In addition, the Information Bulletin 

will reference that an issue of Shares is 

subject to various fees and expenses 

described in the applicable prospectus 

and that there is no regulated source of 

last sale information regarding physical 

commodities or non-U.S. currencies, 

and that the Commission has no 

jurisdiction over the trading of physical 

commodities, currencies, or futures 

contracts on which the value of an issue 

of Shares may be based. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act,25 in general, and 

furthers the objectives of Section 6(b)(5) 

of the Act,26 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, 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 Exchange believes 

that the proposed rules applicable to 

trading pursuant to generic listing and 

trading criteria, together with the 

Exchange’s surveillance procedures 

applicable to trading in the securities 

covered by the proposed rules, serve to 

foster investor protection. The Exchange 

further believes that the proposed rules 

will enhance market competition by 

assisting in bringing Commodity-Based 

Trust Shares, Currency Trust Shares, 

and Commodity Index Trust Shares to 

the market more quickly, consistent 

with the Commission’s adoption of Rule 

19b–4(e) under the Act. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange 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 

The Exchange states that it has neither 

solicited nor received written comments 

on 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 (http://www.sec.gov/ 

rules/sro.shtml); or 

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

Number SR–NYSEArca–2008–51 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–2008–51. 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 the filing also will be available 

for inspection and copying at the 

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 

mstockstill on PROD1PC66 with NOTICES

Federal Register / Vol. 73, No. 159 / Friday, August 15, 2008 / Notices 48001 

27 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 3 15 U.S.C. 78s(b)(1). 

4 17 CFR 240.19b–4. 5ROT equity option transaction charges are 

referred to on the Exchange’s fee schedule as 

‘‘Registered Option Trader (on floor).’’ This charge 

applies to ROTs, Streaming Quote Traders 

(‘‘SQTs’’), and Remote Streaming Quote Traders 

(‘‘RSQTs’’). SQTs and RSQTs are considered to be 

ROTs pursuant to Exchange Rule 1014. ROT 

transactions entered from off-floor would continue 

to be included in the broker/dealer equity option 

transaction charges for billing purposes, as set forth 

in footnote 3 of the Exchange’s Summary of Equity 

Option, and MNX, NDX, RUT and RMN Charges fee 

schedule. 

6Specialists are not currently assessed a 

comparison charge. 

7See Exchange Rule 1080. 

8FBMS is designed to enable Floor Brokers and/ 

or their employees to enter, route and report 

transactions stemming from options orders received 

on the Exchange. See Exchange Rule 1080, 

Commentary .06. 

9Linkage is governed by the Options Linkage 

Authority under the conditions set forth under the 

Plan for the Purpose of Creating and Operating an 

Intermarket Option Linkage (the ‘‘Plan’’) approved 

by the Commission. The registered U.S. options 

markets are linked together on a real-time basis 

through a network capable of transporting orders 

and messages to and from each market. 

10An ROT’s or a specialist’s monthly contract 

volume is determined at the member organization 

affiliation level, e.g., if five ROTs are affiliated with 

member organization ABC as reflected by Exchange 

records for the entire month, all of the volume from 

those five ROTs counts towards member 

organization ABC’s Volume Threshold for that 

month. 

11The current equity option comparison and 

transaction caps of $1,000 and $25,000 that are 

imposed in connection with dividend, merger and 

short stock interest strategies would continue to 

apply. 

12See Exchange Rule 1080. 

Number SR–NYSEArca–2008–51 and 

should be submitted on or before 

September 5, 2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.27

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–18853 Filed 8–14–08; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58334; File No. SR–Phlx–

2008–59] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by the 

Philadelphia Stock Exchange, Inc. 

Relating to Changes to Its Equity 

Option Fees 

August 8, 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 August 1, 

2008, Philadelphia Stock Exchange, Inc. 

(‘‘Phlx’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘SEC’’ or ‘‘Commission’’) the proposed 

rule change as described in Items I, II, 

and III below, which Items have been 

prepared by the Phlx. On August 8, 

2008, the Exchange filed Amendment 

No. 1 to the proposed rule change. 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 Phlx, pursuant to Section 19(b)(1) 

of the Act 3 and Rule 19b–4 thereunder,4

proposes to amend its equity option fees 

as follows: (1) Reduce its equity option 

transaction charge to $0.01 per contract 

for Registered Options Traders 

(‘‘ROTs’’) 5 and specialists for contract 

volume above 4.5 million contracts per 

month (‘‘Volume Threshold’’); (2) delete 

the ROT equity option comparison 

charge for contract volume above the 

Volume Threshold; and (3) delete the 

$0.08 per contract side rebate for ROTs 

and $0.07 per contract side rebate for 

specialists in connection with trades 

occurring as part of a dividend, merger, 

and short stock interest strategy. 

This proposal is scheduled to become 

effective for trades settling on or after 

August 1, 2008. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://www.phlx.com/regulatory/ 

reg_rulefilings.aspx. 

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 

Phlx 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. The Exchange 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 purpose of the proposed rule 

change is to revise the Exchange’s fee 

schedule in order to remain competitive 

and encourage additional order flow to 

the Exchange. Pursuant to this proposal, 

the Exchange intends to amend its 

equity option transaction charges for 

ROTs and specialists. For contract 

volume below the Volume Threshold, 

ROTs would continue to be assessed the 

current equity option transaction charge 

of $0.19 per contract and specialists 

would be assessed the current equity 

option transaction charge of $0.21 per 

contract. Thereafter, both ROTs and 

specialists would be assessed an equity 

option transaction charge of $0.01 per 

contract for contract volume over the 

Volume Threshold for that month. ROTs 

would not be charged the current $0.03 

per contract equity option comparison 

charge for any transactions over the 

Volume Threshold.6 Thus, the total 

equity option transaction and 

comparison charge for both specialists 

and ROTs would be $0.01 per contract 

for contract volume over the Volume 

Threshold for that month. 

Currently, a fee credit of $0.21 per 

contract is given to specialists that incur 

equity option transaction charges when 

a customer order is delivered 

electronically via Phlx XL 7 or via the 

Exchange’s Options Floor Broker 

Management System (‘‘FBMS’’),8 and is 

then executed via the Intermarket 

Option Linkage (‘‘Linkage’’) 9 as a 

Principal Acting as Agent Order (‘‘P/A 

Order’’). In connection with decreasing 

the equity option transaction charge for 

specialists as described above, the fee 

credit would now be equal to the 

applicable equity option transaction 

charge per contract (i.e. $0.21 per 

contract or $0.01 per contract), in order 

not to give a credit that is greater than 

the equity option transaction charge that 

is imposed. 

To determine the Volume Threshold, 

the Exchange would aggregate the 

trading activity of separate ROTs and 

specialist member organizations if there 

is at least 75% common ownership 

between the member organizations as 

reflected on each member organizations’

Form BD, Schedule A.10 Contract 

volume resulting from dividend, merger, 

and short stock interest strategies 11 and 

contract volume resulting from 

specialists that incur Phlx equity option 

transaction charges when a customer 

order is delivered electronically via 

Phlx XL 12 or via FBMS and is then 

executed via Linkage as a P/A Order 

would not be included in the Volume 

Threshold calculation. In addition, 

currently, the Exchange does not assess 

ROT equity option transaction and 

comparison charges and specialist 

equity option transaction charges on 

additional qualifying transactions on 

mstockstill on PROD1PC66 with NOTICES