49726 Federal Register / Vol. 73, No. 164 / Friday, August 22, 2008 / Notices 

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

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

8 17 CFR 240.19b–4(f)(6)(iii). 

9The Exchange has requested that the 

Commission waive the 5-day pre-filing notice 

requirement under Rule 19b–4(f)(6)(iii) given that 

the instant rule filing was originally made pursuant 

to Section 19(b)(2) of the Act on August 13, 2008, 

and Commission staff requested on August 14, 2008 

that the filing be re-submitted pursuant to Section 

19(b)(3)(A). The Commission grants such waiver. 

10 15 U.S.C. 78s(b)(3)(A). 

11 17 CFR 240.19b–4(f)(6). 

12For purposes of waiving the 30-day operative 

delay, the Commission has considered the 

proposal’s impact on efficiency, competition, and 

capital formation. 15 U.S.C. 78c(f). 

13See Release No. 34–58335, supra note 3. 14 17 CFR 200.30–3(a)(12). 

2. Statutory Basis 

The proposed rule change is 

consistent with Section 6(b) of the Act,6

in general, and furthers the objectives of 

Section 6(b)(5) of the Act,7 in particular, 

in that it is designed to prevent 

fraudulent and manipulative acts and 

practices, to promote just and equitable 

principles of trade, 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. Specifically, the 

proposal will align the Exchange’s 

independent director standards with 

those of Nasdaq and NYSE, as well as 

with the Commission’s disclosure 

requirements, thereby providing a 

uniform standard for issuers to 

understand and apply. 

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. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants or Others 

The Exchange did not receive any 

written comments on the proposed rule 

change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The Amex has designated the 

proposed rule change as one that: (1) 

Does not significantly affect the 

protection of investors or the public 

interest; (2) does not impose any 

significant burden on competition; and 

(3) does not become operative for 30 

days from the date of filing, or such 

shorter time as the Commission may 

designate if consistent with the 

protection of investors and the public 

interest. In addition, as required under 

Rule 19b–4(f)(6)(iii),8 the Amex 

provided the Commission with written 

notice of its intention to file the 

proposed rule change, along with a brief 

description of the text of the proposed 

rule change, at least five business days 

prior to filing the proposal, or such 

shorter time as designated by the 

Commission.9 Therefore, the proposed 

rule change has become effective 

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

Act 10 and Rule 19b–4(f)(6) 

thereunder.11

The Amex has further requested the 

Commission to waive the 30-day 

operative delay. The Commission 

hereby grants Amex’s request.12

Waiving the 30-day operative delay is 

consistent with the protection of 

investors and the public interest 

because the Amex proposal is consistent 

with a proposal by Nasdaq that recently 

was approved by the Commission.13

The Commission notes that no 

comments were received on the Nasdaq 

proposal. Therefore, the Commission 

believes that waiving the 30-day 

operative delay is consistent with the 

protection of investors and the public 

interest and designates the proposed 

rule change as operative upon filing. 

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission may summarily abrogate 

such rule change if it appears to the 

Commission that such action is 

necessary or appropriate in the public 

interest, for the protection of investors, 

or otherwise in furtherance of the 

purposes of the Act. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

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

Number SR–Amex–2008–67 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–Amex–2008–67. 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 such 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 

Number SR–Amex–2008–67 and should 

be submitted on or before September 12, 

2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–19551 Filed 8–21–08; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58376; File No. SR–

NYSEArca–2008–70] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Order Granting Approval of 

Proposed Rule Amending NYSE Arca 

Equities Rule 5.2(j)(6)(B)(I), the Generic 

Listing Standard for Equity IndexLinked Securities 

August 18, 2008. 

I. Introduction 

On June 27, 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’’), 

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

Securities Exchange Act of 1934 


jlentini on PROD1PC65 with NOTICES
Federal Register / Vol. 73, No. 164 / Friday, August 22, 2008 / Notices 49727 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 58142 

(July 11, 2008), 73 FR 41147. 

4 Global Notional Volume is defined as the total 

shares traded globally times the price per share. 

5 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). 

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

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

proposal to amend NYSE Arca Equities 

Rule 5.2(j)(6)(B)(I), the Exchange’s 

generic listing standard for equity 

index-linked securities (‘‘Equity IndexLinked Securities’’) to: (1) Eliminate 

initial and continued listing 

capitalization weighted and modified 

capitalization weighted index 

requirements; and (2) to adjust certain 

equity index weighting criteria and 

adopt notional volume traded per 

month to both initial listing standards 

and continued listing standards. The 

proposed rule change was published for 

comment in the Federal Register on July 

17, 2008.3 The Commission received no 

comments on the proposal. This order 

approves the proposed rule change. 

II. Description of the Proposal 

NYSE Arca proposes to amend NYSE 

Arca Equities Rule 5.2(j)(6)(B)(I), the 

Exchange’s generic listing standard for 

Equity Index-Linked Securities to: (1) 

Eliminate initial and continued listing 

capitalization weighted and modified 

capitalization weighted index 

requirements; and (2) to adjust certain 

equity index weighting criteria and 

adopt notional volume traded per 

month to both the initial listing 

standards and continued listing 

standards. 

The Exchange proposes that 

capitalization weighted index or 

modified capitalization weighted 

indexes comply with the initial and 

continued listing requirements currently 

applicable to all other equity indexes 

under NYSE Arca Equities Rule 

5.2(j)(6)(B)(I) regardless of the index 

methodology. 

For Equity Index-Linked Securities, 

the Exchange proposes to eliminate 

NYSE Arca Equities Rule 

5.2(j)(6)(B)(I)(1)(b)(iii), the current initial 

listing requirement that, in the case of 

a capitalization weighted index or 

modified capitalization weighted index, 

the lesser of the five highest dollar 

weighted component securities in the 

index or the highest dollar weighted 

component securities in the index that 

in the aggregate represent at least 30% 

of the total number of component 

securities in the index, must have an 

average monthly trading volume of at 

least 2,000,000 shares over the previous 

six months. The Exchange also proposes 

to eliminate NYSE Arca Equities Rule 

5.2(j)(6)(B)(I)(2)(a)(iii), the current 

continued listing requirement, that in 

the case of a capitalization weighted 

index or modified capitalization 

weighted index, the lesser of the five 

highest dollar weighted component 

securities in the index or the highest 

dollar weighted component securities in 

the index that in the aggregate represent 

at least 30% of the total number of 

stocks in the index have an average 

monthly trading volume of at least 

1,000,000 shares over the previous six 

months. 

The Exchange is also proposing to: (i) 

Remove the requirement that each of the 

lowest weighted component securities 

in the index that in the aggregate 

account for 10% of the weight of the 

index have trading volume of at least 

500,000 shares per month for each of the 

last six months; and (ii) adopt minimum 

global notional volume (‘‘Global 

Notional Volume’’) 4 traded per month 

of $25,000,000 averaged over of the last 

six months as an option for meeting the 

listing requirements. 

With respect to the continued listing 

criteria, Rule 5.2(j)(6)(B)(I)(2)(a)(ii) 

currently sets forth that the trading 

volume of each component security in 

the index must be at least 500,000 

shares for each of the last six months, 

except that for each of the lowest 

weighted components in the index that 

in the aggregate account for no more 

than 10% of the weight of the index, 

trading volume must be at least 400,000 

shares for each of the last six months. 

The Exchange is proposing to: (i) 

Remove the requirement that the lowest 

weighted component securities in the 

index that in the aggregate accounting 

for no more than 10% of the weight of 

the index have trading volume of at 

least 400,000 shares for each of the last 

six months; and (ii) adopt minimum 

Global Notional Volume traded per 

month of $12,500,000 averaged over the 

last six months as an option for 

satisfying the continued listing 

requirements. 

III. Commission’s Findings and Order 

Granting Approval of the Proposed 

Rule Change 

After careful review, 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.5 In particular, the 

Commission finds that the proposed 

rule change is consistent with Section 

6(b)(5) of the Act 6 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, and, in 

general, to protect investors and the 

public interest. 

The Commission believes that the 

Exchange’s proposal to eliminate the 

above-described initial and continued 

listing requirements for Equity-Index 

Linked Securities based upon 

capitalization weighted and modified 

capitalization weighted indexes would 

subject all Equity Index-Linked 

Securities to the same listing 

requirements, regardless of the 

methodology upon which a product’s 

underlying index is based. The 

Commission believes that the proposal 

should facilitate the listing and trading 

of Equity Index-Linked Securities with 

different index methodologies, thus 

benefiting investors by providing them 

with a wider selection of derivative 

products. 

The Exchange also proposes to adjust 

the index weighting criteria in NYSE 

Arca Equities Rules 

5.2(j)(6)(B)(I)(1)(b)(ii) and 

5.2(j)(6)(B)(I)(2)(a)(ii) and to adopt an 

averaged minimum global notional 

volume traded per month as an option 

for meeting these initial and continued 

listing requirements. The Commission 

believes that focusing the listing 

requirements on measuring component 

stocks that in the aggregate account for 

90% of the weight of an index should 

be sufficient to evaluate the liquidity of 

an index underlying a given EquityIndex Linked Security. The Commission 

further believes that the use of global 

notional volume as an alternative 

measure to global trading volume is 

acceptable in that it should mitigate the 

volume discrepancies between low- and 

high-priced stocks. Finally, the 

Exchange’s proposal to adopt an average 

of trading or notional volume, as the 

case may be, should help to eliminate 

seasonal volume fluctuations that may 

occur in the trading of an Equity-Index 

Linked Security in a given month. The 

Commission believes that the proposal 

should promote competition and benefit 

investors, Equity Index-Linked 

Securities issuers, and third-party index 

sponsors by expediting the Exchange’s 

ability to list and trade Equity IndexLinked Securities based on a broader 

group of indexes. 

For the foregoing reasons, the 

Commission believes that the proposed 

rule change is consistent with the Act. 


jlentini on PROD1PC65 with NOTICES
49728 Federal Register / Vol. 73, No. 164 / Friday, August 22, 2008 / Notices 

7 15 U.S.C. 78s(b)(2). 

8 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 58109 

(July 7, 2008), 73 FR 40415. 

4See Securities Exchange Act Release No. 54007 

(June 16, 2006), 71 FR 36155 (June 23, 2006) (SR–

PCX–2006–16). 

5 15 U.S.C. 78f(b)(4). 

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

7 In approving this proposed rule change, the 

Commission notes that it has considered the 

proposed rules’ impact on efficiency, competition, 

and capital formation. See 15 U.S.C. 78c(f). 

8See Nasdaq Rule IM–4500–4 and NYSE Listed 

Company Manual Section 902.02. 

9See supra note 3. 

10 15 U.S.C. 78f(b)(4). 

11 15 U.S.C. 78f(b)(5). 

12 15 U.S.C. 78s(b)(2). 

13 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,7 that the 

proposed rule change (SR–NYSEArca–

2008–70) be, and it hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–19474 Filed 8–21–08; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58379; File No. SR–

NYSEArca–2008–47] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Order Approving Proposed 

Rule Change To Waive Retroactively 

as of June 24, 2008, Initial Listing Fees 

for Companies Who Apply To List 

Securities Currently Listed on Another 

National Securities Exchange 

August 18, 2008. 

I. Introduction 

On June 24, 2008, NYSE Arca, Inc. 

(‘‘NYSE Arca’’ or ‘‘Exchange’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 

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

Exchange Act of 1934 (‘‘Act’’),1 and 

Rule 19b–4 thereunder,2 a proposed rule 

change to waive retroactively as of June 

24, 2008, initial listing fees for 

companies who apply to list securities 

currently listed on another national 

securities exchange. The proposed rule 

change was published in the Federal 

Register on July 14, 2008.3 The 

Commission received no comments on 

the proposal. This order approves the 

proposed rule change. 

II. Description of the Proposal 

The Exchange proposes to waive 

initial listing fees for companies who 

apply to list securities currently listed 

on another national securities exchange. 

The waiver would apply to all classes of 

securities. The proposed fee waiver 

would be applied retroactively to any 

companies that apply to list after June 

24, 2008. The Exchange had previously 

waived initial listing fees for all 

companies that transferred from the 

New York Stock Exchange (‘‘NYSE’’) at 

any time or from Nasdaq Stock Market 

(‘‘Nasdaq’’) or the American Stock 

Exchange prior to December 31, 2007, or 

had applied to list prior to that date.4

III. Discussion 

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 and, in particular, the 

requirements of Section 6(b) of the Act 

and the rules and regulations 

thereunder. Specifically, the 

Commission finds that the proposal is 

consistent with Sections 6(b)(4) 5 and 

6(b)(5) of the Act,6 which require that an 

exchange have rules that provide for the 

equitable allocation of reasonable dues, 

fees, and other charges among its 

members and other persons using its 

facilities, and are designed, among other 

things, to promote just and equitable 

principles of trade, to remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system, to protect 

investors and the public interest, and to 

not permit unfair discrimination 

between customers, issuers, brokers, or 

dealers.7

The Commission notes that an issuer 

seeking to transfer to the Exchange has 

already paid initial listing fees to 

another national securities exchange 

when it became a publicly traded 

company. In addition, the Commission 

notes that the Exchange does not expect 

the loss of initial listing fees to be 

material and has stated that the fee 

waiver will not affect the Exchange’s 

commitment of resources to its 

regulatory oversight of the listing 

process or its regulatory program. The 

Exchange would continue to assess 

annual fees and listing of additional 

shares fees from these issuers. Further, 

the Exchange believes that there will be 

lower burdens associated with its 

eligibility review of issuers transferring 

from another national securities 

exchange. However, the Commission 

expects, and the Exchange has 

represented, that a full and independent 

review of compliance with the listing 

standards will be conducted for any 

company seeking to take advantage of 

the fee waiver, just as for any company 

that applies for listing on the Exchange. 

Finally, the Commission also notes that 

The Nasdaq Stock Market and the New 

York Stock Exchange have similar 

provisions.8 The Commission believes 

that the proposed waiver could enhance 

competition among the markets, as the 

Exchange seeks to become a more 

attractive listing venue and a viable 

alternative to listing on other national 

securities exchanges. 

Based on the above, the Commission 

believes the proposed fee waiver, which 

is retroactively effective to June 24, 

2008, the date of the filing of the 

proposed rule change,9 does not 

constitute an inequitable allocation of 

reasonable dues, fees, and other charges 

under Section 6(b)(4) of the Act,10 does 

not permit unfair discrimination 

between issuers under Section 6(b)(5) of 

the Act,11 and is otherwise consistent 

with the requirements of the Act. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,12 that the 

proposed rule change (SR–NYSEArca–

2008–47) is hereby approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–19513 Filed 8–21–08; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58380; File No. SR–Phlx–

2008–61] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by the 

Philadelphia Stock Exchange, Inc. 

Relating to Changing Its Name 

August 18, 2008. 

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

Securities Exchange Act of 1934 

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

notice is hereby given that on August 

15, 2008, the Philadelphia Stock 

Exchange, Inc. (‘‘Phlx’’ or ‘‘Exchange’’) 

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 Phlx. The 


jlentini on PROD1PC65 with NOTICES