Federal Register / Vol. 73, No. 176 / Wednesday, September 10, 2008 / Notices 52711 

5 Incorporated NYSE Rules 421(2) and 421.40 

require members carrying margin accounts for 

customers to report certain aggregate debit and free 

credit balances. 

6Short positions required to be reported under 

the rules are those resulting from ‘‘short sales’’ as 

the term is defined in Rule 200(a) of Regulation 

SHO, subject to certain limited exceptions. See 

NASD Rule 3360(b)(1). 

7The term ‘‘OTC Equity Securities’’ refers to any 

equity security that is not listed on a national 

securities exchange. See NASD Rule 3360(b)(3). 

8 It is the responsibility of each member firm to 

ensure that it is reporting accurate short interest 

data, including confirming that issue symbols are 

active and valid as of the designated settlement 

date. See Notice to Members 06–20 (April 2006). 

9Non-self-clearing broker-dealers generally are 

considered to have satisfied their reporting 

requirement by making appropriate arrangements 

with their respective clearing organizations. See 

Notice to Members 03–08 (February 2003). 

10A schedule of FINRA’s designated settlement 

dates can be found on its Web site at http:// 

www.finra.org. See also Notice to Members 07–24 

(May 2007). 

11See Regulatory Notice 08–13 (March 2008). 

Prior to June 30, firms reported short interest 

positions in NYSE-listed securities through the EFP 

and all other securities through FINRA’s Regulation 

Filing Applications (‘‘RFA’’) system or the SIAC. 

12 In approving this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

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

13 15 U.S.C. 78o–3(b)(6). 

14Securities Exchange Act Release No. 56279 

(Aug. 17, 2007), 72 FR 48713 (Aug. 24, 2007). 

15Securities Exchange Act Release No. 57252 

(Feb. 1, 2008), 73 FR 7343 (Feb. 7, 2008). 

16 15 U.S.C. 78s(b)(2). 

17 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

FINRA proposed to adopt the short 

interest reporting requirements in NASD 

Rule 3360 and Incorporated NYSE Rules 

421(1) and 421.10 as FINRA Rule 4560 

in the Consolidated FINRA Rulebook. 

NASD Rule 3360 and Incorporated 

NYSE Rules 421(1) and 421.10 set forth 

FINRA’s short interest reporting 

requirements.5 NASD Rule 3360 

requires members to report short 

positions 6 in OTC Equity Securities 7

and exchange-listed securities not 

otherwise reported to another selfregulatory organization (‘‘SRO’’),8 and 

Incorporated NYSE Rules 421(1) and 

421.10 require members to report short 

positions in NYSE-listed securities. 

Members must report total short 

positions in all customer and 

proprietary accounts as of the 

designated settlement dates and in the 

manner so prescribed.9 Currently, the 

rules require such information to be 

reported twice a month, which in turn, 

is then made publicly available on an 

aggregate basis twice a month.10

As of June 30, 2008, FINRA 

consolidated the collection of short 

interest data, so that firms report short 

interest positions in all securities to 

FINRA using the Regulation Filing 

Applications system; consequently, 

firms will no longer be able to report 

any of their short interest positions 

using the NYSE’s Electronic Filing 

Platform (‘‘EFP’’) or the Securities 

Industry Automation Corporation 

(‘‘SIAC’’).11

Given that the short interest 

requirements in each of the rules are 

substantially similar, FINRA proposed 

to adopt these requirements as part of 

the Consolidated FINRA Rulebook, 

subject only to certain non-substantive 

changes. Most notably, because FINRA 

will now be the primary collector of 

consolidated short interest data for its 

members in all securities (rather than 

only if such positions in exchange-listed 

securities are not reported to another 

SRO), FINRA is not retaining the text in 

NASD Rule 3360 that limits short 

interest reportable to FINRA to those 

positions in exchange-listed securities 

‘‘not otherwise reported to another selfregulatory organization.’’

III. Discussion and Findings 

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 that are applicable to a 

national securities association.12 In 

particular, the Commission believes that 

the proposed rule change is consistent 

with the provisions of Section 15A(b)(6) 

of the Act,13 which requires, among 

other things, that FINRA rules must be 

designed to prevent fraudulent and 

manipulative acts and practices, to 

promote just and equitable principles of 

trade, and, in general, to protect 

investors and the public interest. The 

Commission notes that it has previously 

approved the short interest reporting 

requirements of NASD Rule 3360 14 and 

NYSE Rules 421(1) and 421.10 15, and 

the proposed rule change moves these 

requirements to the Consolidated 

FINRA Rulebook, subject only to certain 

non-substantive changes. The short 

interest reporting requirements 

previously have been found to meet the 

statutory requirements, and the 

Commission believes such requirements 

have since proven effective in achieving 

the statutory mandates. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,16 that the 

proposed rule change (SR–FINRA–

2008–033), as modified by Amendment 

No. 1 thereto, be, and it hereby is, 

approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–20964 Filed 9–9–08; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58457; File No. SR–

NYSEArca–2008–91] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and Order 

Granting Accelerated Approval of 

Proposed Rule Change Regarding the 

Listing of Fourteen Funds of the 

Commodities and Currency Trust 

September 3, 2008. 

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

Securities Exchange Act of 1934 (the 

‘‘Exchange Act’’) 1 and Rule 19b–4 

thereunder,2 notice is hereby given that, 

on August 21, 2008, NYSE Arca, Inc. 

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

with the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change as described in 

Items I and II below, which Items have 

been prepared by the Exchange. The 

Commission is publishing this notice 

and order to solicit comments on the 

proposed rule change from interested 

persons and to approve the proposed 

rule change on an accelerated basis. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange, through its whollyowned subsidiary NYSE Arca Equities, 

Inc. (‘‘NYSE Arca Equities’’), proposes 

to list and trade shares (‘‘Shares’’) of 

fourteen (14) funds (‘‘Funds’’) of the 

Commodities and Currency Trust 

(‘‘Trust’’) based on several currencies, 

commodities and commodities indexes. 

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 

self-regulatory organization 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 III below. 

The Exchange has prepared summaries, 

set forth in sections A, B, and C below, 


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52712 Federal Register / Vol. 73, No. 176 / Wednesday, September 10, 2008 / Notices 

3See Securities Exchange Act Release No. 58161 

(July 15, 2008), 73 FR 42380 [sic] (July 21, 2008) 

(SR–Amex–2008–39). Notice of the Amex proposed 

rule change was published in Securities Exchange 

Act Release No. 57932 (June 5, 2008), 73 FR 33467 

(June 12, 2008) (‘‘Amex Proposal’’). 

4See Securities Exchange Act Release No. 58162 

(July 15, 2008), 73 FR 42391 (July 21, 2008) (SR–

NYSEArca–2008–73). 

5Commentary .02(b)(4) to NYSE Arca Equities 

Rule 8.200 defines ‘‘Financial Instruments’’ as any 

combination of cash, securities, options on 

securities and indices, futures contracts, options on 

futures contracts, forward contracts, equity caps, 

collars and floors and swap agreements. 

6The Funds are the Ultra DJ–AIG Commodity 

ProShares, UltraShort DJ–AIG Commodity 

ProShares, Ultra DJ–AIG Agriculture ProShares, 

UltraShort DJ–AIG Agriculture ProShares, Ultra DJ–

AIG Crude Oil ProShares, UltraShort DJAIG Crude 

Oil ProShares, Ultra Gold ProShares, UltraShort 

Gold ProShares, Ultra Silver ProShares, UltraShort 

Silver ProShares, Ultra Euro ProShares, UltraShort 

Euro ProShares, Ultra Yen ProShares and 

UltraShort Yen ProShares. 

7 ‘‘Net asset value’’ means the total assets of a 

Fund including, but not limited to, all cash and 

cash equivalents or other debt securities less total 

liabilities of such Fund, each determined on the 

basis of generally accepted accounting principles in 

the United States, consistently applied under the 

accrual method of accounting. In particular, net 

asset value includes any unrealized profit or loss on 

open swaps and futures contracts, and any other 

credit or debit accruing to a Fund but unpaid or not 

received by a Fund. 

8The Commission has previously approved 

issues of Commodity-Based Trust Shares, Currency 

Trust Shares and Commodity Index Trust Shares, 

which have certain characteristics similar to the 

proposed TIRs, for exchange listing and trading. 

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

50603 (October 28, 2004), 69 FR 64614 (November 

5, 2004) (SR–NYSE–2004–22) (order approving 

listing on the New York Stock Exchange (‘‘NYSE’’) 

of streetTRACKS Gold Trust); Securities Exchange 

Act Release No. 51058 (January 19, 2005), 70 FR 

3749 (January 26, 2005) (SR–Amex–2004–38) (order 

approving listing on the American Stock Exchange 

(‘‘Amex’’) of the iShares COMEX Gold Trust); 

Securities Exchange Act Release No. 53521 (March 

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

Amex–2005–72) (order approving listing on Amex 

of the iShares Silver Trust); Securities Exchange Act 

Release No. 56041 (July 11, 2007), 72 FR 39114 

(July 17, 2007) (SR–NYSEArca–2007–43) (order 

granting accelerated approval to list on NYSE Arca 

the iShares COMEX Gold Trust); Securities 

Exchange Act Release No. 52843 (November 28, 

2005), 70 FR 72486 (December 5, 2005) (SR–NYSE 

2005–65) (order granting accelerated approval for 

NYSE to list and trade shares of the CurrencyShares 

Euro Trust); Securities Exchange Act Release No. 

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

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

approval for NYSE to list and trade 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); Securities 

Exchange Act Release No. 55268 (February 9, 2007), 

72 FR 7793 (February 20, 2007) (SR–NYSE–2007–

03) (order granting accelerated approval for NYSE 

to list and trade shares of the CurrencyShares 

Japanese Yen Trust); Securities Exchange Act 

Release No. 56131 (July 25, 2007), 72 FR 42212 

(August 1, 2007) (SR–NYSEArca–2007–57) (order 

granting accelerated approval for listing on NYSE 

Arca of CurrencyShares Trusts); Securities 

Exchange Act Release No. 54013 (June 16, 2006), 71 

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

(approving listing on the NYSE of the iShares GSCI 

Trust); Securities Exchange Act Release No. 55585 

(April 5, 2007), 72 FR 18500 (April 12, 2007) (SR–

NYSE–2006–75) (approving for NYSE listing the 

iShares GS Commodity Light Energy Indexed Trust; 

iShares GS Commodity Industrial Metals Indexed 

Trust; iShares GS Commodity Livestock Indexed 

Trust and iShares GS Commodity Non-Energy 

Indexed Trust); Securities Exchange Act Release 

No. 56932 (December 7, 2007), 72 FR 71178 

(December 14, 2007) (SR–NYSEArca–2007–112) 

(order granting accelerated approval to list iShares 

S&P GSCI Commodity-Indexed Trust); Securities 

Exchange Act Release No. 57456 (March 7, 2008), 

73 FR 13599 (March 13, 2008) (SR–NYSEArca–

2007–91) (order granting accelerated approval for 

NYSE Arca listing 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 

of the most significant parts 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 Shares of the Funds pursuant to 

NYSE Arca Equities Rule 8.200, 

Commentary .02, which permits the 

trading of Trust Issued Receipts 

(‘‘TIRs’’) either by listing or pursuant to 

unlisted trading privileges (‘‘UTP’’). The 

Shares have been approved by the 

Commission for listing on the American 

Stock Exchange LLC (‘‘Amex’’) 3 and for 

trading on the Exchange pursuant to 

UTP.4 The issuer of the Shares has 

determined to list the Shares on the 

Exchange. The Exchange represents that 

the Shares satisfy the requirements of 

NYSE Arca Equities Rule 8.200 and 

thereby qualify for listing on the 

Exchange. 

Shares of each Fund will be generally 

subject to the rules that apply to TIRs. 

The Shares represent common units of 

fractional undivided beneficial interest 

in, and ownership of, each Fund. Each 

Fund will invest the proceeds of its 

offering of Shares in various Financial 

Instruments 5 that will provide exposure 

to the Fund’s underlying currency, 

commodity or commodity index. In 

addition, the Funds will also maintain 

cash positions in cash or money market 

instruments for the purpose of 

collateralizing such positions taken in 

the Financial Instruments. 

Shares of seven (7) of the Funds of the 

Trust will be designated as Ultra 

ProShares while the other seven (7) 

Funds of the Trust will be designated as 

UltraShort ProShares. Each of the Funds 

will have a distinct investment 

objective.6 The Funds will attempt, on 

a daily basis, to achieve their 

investment objective by corresponding 

to a specified multiple or an inverse 

multiple of the performance of a 

particular benchmark commodities 

index, commodity or currency (each an 

‘‘Underlying Benchmark’’ and 

collectively, the ‘‘Underlying 

Benchmarks’’). 

Six (6) Funds will be based on the 

following benchmark commodities 

indexes: (i) The Dow Jones-AIG 

Commodity IndexSM; (ii) the Dow JonesAIG Crude Oil Sub-IndexSM; and (iii) 

the Dow Jones-AIG Agriculture SubIndexSM (each, an ‘‘Underlying Index’’

and collectively, the ‘‘Underlying 

Indexes’’). Four (4) Funds will be based 

on the following commodities: (i) Gold; 

and (ii) silver (each, an ‘‘Underlying 

Commodity’’ and collectively, the 

‘‘Underlying Commodities’’). Four (4) 

Funds will be based on the following 

benchmark currencies versus the U.S. 

dollar: (1) The Euro; and (2) the 

Japanese Yen (each, an ‘‘Underlying 

Currency’’ and collectively, the 

‘‘Underlying Currencies’’). The 

Exchange proposes to list and trade 

Shares of the Funds that seek daily 

investment results, before fees and 

expenses, that correspond to twice 

(200%) the daily performance of the 

Underlying Benchmark (the ‘‘Ultra 

Funds’’). If a Fund is successful in 

meeting its investment objective, the net 

asset value (‘‘NAV’’) 7 of the Shares of 

each Fund is expected to gain on a 

percentage basis, approximately twice 

as much as each Fund’s respective 

Underlying Benchmark when the price 

of the Underlying Benchmark increases 

on a given day, and should lose 

approximately twice as much when 

such price declines on a given day, 

before fees and expenses. 

The Exchange also proposes to list 

and trade Shares of the Funds that seek 

daily investment results, before fees and 

expenses that correspond to twice the 

inverse (¥200%) of the daily 

performance of the Underlying 

Benchmark (the ‘‘UltraShort Funds’’). If 

each Fund is successful in meeting its 

objective, the NAV of the Shares of each 

Fund is expected to increase 

approximately twice as much, on a 

percentage basis, as the respective 

Underlying Benchmark loses on a given 

day, or should decrease approximately 

twice as much as the respective 

Underlying Benchmark gains when the 

Underlying Benchmark rises on a given 

day, before fees and expenses. The 

Exchange notes that the Commission 

has permitted the listing and trading on 

the Exchange and other national 

securities exchanges of securities linked 

to the performance of underlying 

currencies and commodities.8 The 


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

Commodity-Indexed Trust). 

9See Securities Exchange Act Release No. 55125 

(January 18, 2007), 72 FR 3462 (January 25, 2007) 

(SR–NYSEArca–2006–87); Securities Exchange Act 

Release No. 57017 (December 20, 2007), 72 FR 

73955 (December 28, 2007) (SR–NYSEArca–2007–

108). 

10See note 3, supra. 

Commission also has approved for 

trading on the Exchange on a UTP basis 

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

UltraFunds, Short Funds and UltraShort 

Funds of the ProShares Trust.9

A description of each of the 

Underlying Indexes, commodities 

Underlying Benchmarks and currency 

Underlying Benchmarks is set forth in 

the Amex Proposal.10 In addition, 

information regarding the structure and 

investment objective of the Funds, the 

portfolio investment methodology, 

investment techniques, and creation and 

redemption of Shares is provided in the 

respective Registration Statements and 

in the Amex Proposal. 

Net Asset Value (NAV). The NAV of 

a Fund is total assets including, but not 

limited to, all cash and cash equivalents 

or other debt securities, less total 

liabilities, each determined on the basis 

of generally accepted accounting 

principles. In particular, the NAV 

includes any unrealized profit or loss on 

open Financial Instruments and any 

other credit or debit accruing to a Fund, 

but unpaid or not received. 

The NAV per Share of each Fund is 

computed by dividing the value of the 

net assets of such Fund (i.e., the value 

of its total assets, less total liabilities) by 

its total number of Shares outstanding. 

Expenses and fees are accrued daily and 

taken into account for purposes of 

determining NAV. The NAV of each 

Fund is calculated by the Administrator 

and is determined each business day as 

described further in the Amex Proposal. 

The Exchange represents that it will 

obtain a representation (prior to listing 

the Shares of the Funds) from the Trust 

that the NAV per Share will be 

calculated daily and made available to 

all market participants at the same time. 

Availability of Information Regarding 

the Shares 

The Web sites for the Funds and/or 

the Exchange, which are publicly 

accessible at no charge, will contain the 

following information: (a) The current 

NAV per Share daily and the prior 

business day’s NAV per Share and the 

reported closing price; (b) the mid-point 

of the bid-ask price in relation to the 

NAV per Share as of the time it is 

calculated (the ‘‘Bid-Asked Price’’); (c) 

calculation of the premium or discount 

of such price against the NAV per Share; 

(d) data in chart form displaying the 

frequency distribution of discounts and 

premiums of the Bid-Ask Price against 

the NAV per Share, within appropriate 

ranges for each of the four (4) previous 

calendar quarters; (e) the Prospectus; 

and (f) other applicable quantitative 

information. 

The NAV per Share will be calculated 

and disseminated daily. The Exchange 

will disseminate for the Funds on a 

daily basis by means of CTA/CQ High 

Speed Lines information with respect to 

the corresponding ‘‘Indicative Value’’

(as discussed below), recent NAV per 

Share and Shares outstanding. The 

Exchange will also make available on its 

Web site (http://www.nyse.com) daily 

trading volume of the Shares, closing 

prices of the Shares, and the NAV per 

Share. The closing price and settlement 

prices of the futures contracts held by 

the Funds are also readily available 

from the Chicago Mercantile Exchange 

(‘‘CME’’), New York Mercantile 

Exchange (‘‘NYMEX’’), Chicago Board of 

Trade (‘‘CBOT’’), Intercontinental 

Exchange/New York Board of Trade 

(‘‘ICE/NYBOT’’), London Metal 

Exchange (‘‘LME’’), automated quotation 

systems, published or other public 

sources, or on-line information services 

such as Bloomberg or Reuters. Real-time 

dissemination of spot pricing for gold, 

silver, euro and Japanese yen is 

available on a 24-hour basis worldwide 

from various major market data vendors. 

Portfolio Disclosure 

Each Fund’s total portfolio 

composition will be disclosed on the 

Web site of the Trust (http:// 

www.proshares.com) or another relevant 

Web site as determined by the Trust 

and/or the Exchange. The Trust will 

provide Web site disclosure of portfolio 

holdings daily and will include, as 

applicable, the names and number of 

Financial Instruments and 

characteristics of such instruments, cash 

equivalents and amount of cash held in 

the portfolio of each Fund. This public 

Web site disclosure of the portfolio 

composition of each Fund will occur at 

the same time as the disclosure by the 

Managing Owner of the portfolio 

composition to Authorized Participants, 

so that all market participants are 

provided portfolio composition 

information at the same time. Therefore, 

the same portfolio information will be 

provided on the public Web site as well 

as in electronic files provided to 

Authorized Participants. Accordingly, 

each investor will have access to the 

current portfolio composition of each 

Fund through the Trust’s Web site, at 

http://www.proshares.com, and/or at the 

Exchange’s Web site. 

Availability of Information About the 

Underlying Benchmarks 

The daily closing index value and the 

percentage change in the daily closing 

index value for each Underlying Index 

will be publicly available on various 

Web sites, e.g., http://www.ino.com and 

http://www.finance.yahoo.com. Data 

regarding each Underlying Index is also 

available from the respective index 

provider to subscribers. In addition, 

data is available regarding the 

underlying component commodities of 

each Underlying Index from those 

futures exchanges that list and trade 

futures contracts on those commodities. 

Several independent data vendors also 

package and disseminate index data in 

various value-added formats (including 

vendors displaying both index 

constituents and index levels and 

vendors displaying index levels only). 

Data regarding spot pricing of the 

Underlying Commodities (gold and 

silver) is publicly available on a 24-hour 

basis from various financial information 

service providers, such as Reuters and 

Bloomberg. In addition, the daily 

London fix for gold and silver is also 

disseminated by various market data 

vendors and is available from the 

London Bullion Market Association 

(‘‘LBMA’’) Web site at http:// 

www.lbma.org.uk. 

Data regarding futures contracts and 

options on futures contracts in 

connection with the Underlying 

Commodities is also available from the 

NYMEX at http://nymex.com. There is 

considerable public price and data 

information regarding the Underlying 

Currencies (euro and Japanese yen). 

Spot pricing related to foreign exchange 

is available to investors and market 

professionals on a 24-hour basis. A 

variety of public Web sites and 

professional and subscription services 

provide market and price information 

regarding the euro and the yen. Current 

spot prices are also generally available 

from foreign exchange dealers. 

The value of each Underlying 

Benchmark will be updated intra-day on 

a real time basis as its components 

change in price. The daily closing index 

value and the percentage change in the 

daily closing index value for each 

Underlying Index will be publicly 

available on various Web sites, such as 

http://www.ino.com and http:// 

www.finance.yahoo.com. Data regarding 

each Underlying Index is also available 

from the respective index provider to 

subscribers. In addition, data is also 

available regarding the underlying 

component commodities of each 


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52714 Federal Register / Vol. 73, No. 176 / Wednesday, September 10, 2008 / Notices 

Underlying Index from those futures 

exchanges that list and trade futures 

contracts on those commodities. Several 

independent data vendors also package 

and disseminate index data in various 

value-added formats (including vendors 

displaying both index constituents and 

index levels and vendors displaying 

index levels only). 

Data regarding spot pricing of the 

Underlying Benchmark commodities 

(gold and silver) is publicly available on 

a 24-hour basis from various financial 

information service providers, such as 

Reuters and Bloomberg. In addition, the 

daily London fix for gold and silver is 

also disseminated by various market 

data vendors and is available from the 

LBMA Web site at http:// 

www.lbma.org.uk. Data regarding 

futures contracts and options on futures 

contracts in connection with the 

Underlying Benchmark commodities is 

also available from NYMEX at http:// 

www.nymex.com. 

There is considerable public price and 

data information regarding the 

Underlying Benchmark currencies (euro 

and Japanese yen). Spot pricing related 

to the foreign currency exchange is 

available to investors and market 

professionals on a 24-hour basis. A 

variety of public Web sites and 

professional and subscription services 

provide market and price information 

regarding the euro and the yen. Current 

spot prices are also generally available 

from foreign exchange dealers. 

Dissemination of Net Asset Value and 

Indicative Value 

The Administrator calculates and 

disseminates, once each trading day, the 

NAV per Share to market participants. 

The Exchange will obtain a 

representation (prior to listing of the 

Funds) from the Trust that the NAV per 

Share will be calculated daily and made 

available to all market participants at 

the same time. In addition, the 

Administrator causes to be made 

available on a daily basis the 

corresponding Cash Deposit Amounts to 

be deposited in connection with the 

issuance of the respective Shares. 

In order to provide updated 

information relating to the Fund for use 

by investors, professionals and persons 

wishing to create or redeem the Shares, 

the Exchange will disseminate an 

updated Indicative Value. The 

Indicative Value will be disseminated 

on a per-Share basis at least every 15 

seconds during Exchange Core Trading 

Session trading hours of 9:30 a.m. to 4 

p.m. ET. The Indicative Value will be 

calculated based on the cash required 

for creations and redemptions for a 

Fund adjusted to reflect the price 

changes of the Financial Instruments. 

Criteria for Initial and Continued 

Listing. The Funds will be subject to the 

criteria in NYSE Arca Equity Rule 

8.200(d) and Commentary .02(d) to Rule 

8.200 for initial and continued listing of 

the Shares. The Funds will accept 

subscriptions for Shares in Creation 

Units from Authorized Participants 

expected to be in a range from $20 to 

$70 per Share during an initial offering 

period, commencing with the initial 

effective date of the prospectus and 

terminating no later than the ninetieth 

(90) day following such date, unless (i) 

the subscription minimum is reached 

before that date and the Managing 

Owner determines to end the initial 

offering period early or (ii) that date is 

extended by the Managing Owner for up 

to an additional 90 days. 

The anticipated minimum number of 

Shares for each Fund to be outstanding 

at the start of trading will be 50,000 

Shares. The Exchange believes that this 

anticipated minimum number of Shares 

for each Fund to be outstanding at the 

start of trading is sufficient to provide 

adequate market liquidity and to further 

the objectives of the Funds. The 

Exchange represents that, for the initial 

and continued listing of the Shares, the 

Shares must be in compliance with 

NYSE Arca Equities Rule 5.3 and Rule 

10A–3 under the Exchange Act. 

Trading Rules 

The Exchange deems the Shares to be 

equity securities, thus rendering trading 

in the Shares subject to the Exchange’s 

existing rules governing the trading of 

equity securities. Trading in the Shares 

on the Exchange will occur in 

accordance with NYSE Arca Equities 

Rule 7.34(a). The Exchange has 

appropriate rules to facilitate 

transactions in the Shares during this 

time. The minimum trading increment 

for Shares on the Exchange will be 

$0.01. 

Further, NYSE Arca Equities Rules 

8.200, Commentary .02 sets forth certain 

restrictions on equity trading permit 

holders (‘‘ETP Holders’’) acting as 

registered Market Makers in Trust 

Issued Receipts to facilitate 

surveillance. Rule 8.200, Commentary 

.02(e)(3) requires that the ETP Holder 

acting as a registered Market Maker in 

the Shares provide the Exchange with 

information relating to its trading in the 

applicable physical asset or commodity, 

related futures or options on futures, or 

any other related derivatives as may be 

requested. NYSE Arca Equities Rule 

8.200, Commentary .02(e)(4) prohibits 

the ETP Holder acting as a registered 

Market Maker in the Shares from using 

any material nonpublic information 

received from any person associated 

with an ETP Holder or employee of such 

person regarding trading by such person 

or employee in the applicable 

underlying physical asset or 

commodity, related futures or options 

on futures, or any other related 

derivative (including the TIRs). In 

addition, NYSE Arca Equities Rule 

8.200, Commentary .02(e)(1) prohibits 

the ETP Holder acting as a registered 

Market Maker in the Shares from being 

affiliated with a market maker in the 

applicable physical asset or commodity, 

related futures or any other related 

derivatives unless adequate information 

barriers are in place, as provided in 

NYSE Arca Equities Rule 7.26. 

As a general matter, the Exchange has 

regulatory jurisdiction over its ETP 

Holders and any person or entity 

controlling an ETP Holder. The 

Exchange also has regulatory 

jurisdiction over a subsidiary or affiliate 

of an ETP Holder that is in the securities 

business. A subsidiary or affiliate of an 

ETP Holder that does business only in 

commodities or futures contracts would 

not be subject to Exchange jurisdiction, 

but the Exchange could obtain certain 

information regarding the activities of 

such subsidiary or affiliate through 

surveillance sharing agreements with 

regulatory organizations of which such 

subsidiary or affiliate is a member. 

Surveillance 

The Exchange intends to utilize its 

existing surveillance procedures 

applicable to derivative products, 

including TIRs, 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 and applicable federal securities 

laws. 

The Exchange’s current trading 

surveillances focus 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 is able 

to obtain information regarding trading 

in the Shares, and certain of the 

Financial Instruments held by TIRs 

including securities, options on 

securities and indices, commodities, 

futures contracts, and options on futures 

contracts, through ETP Holders, in 

connection with such ETP Holders’

proprietary or customer trades which 

they effect on any relevant market. The 

Exchange currently has in place 


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Federal Register / Vol. 73, No. 176 / Wednesday, September 10, 2008 / Notices 52715 

11NYSE Arca Equities Rule 9.2(a) (‘‘Diligence as 

to Accounts’’) provides that an ETP Holder, 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 proposed rule amendment 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. See Securities Exchange Act 

Release No. 54045 (June 26, 2006), 71 FR 37971 

(July 3, 2006) (SR–PCX–2005–115). 

12Pursuant to NYSE Arca Equities Rule 7.34(a)(5), 

if the Exchange becomes aware that the NAV is not 

being disseminated to all market participants at the 

same time, it will halt trading in the Shares until 

such time as the NAV is available to all market 

participants. 

13See NYSE Arca Equities Rule 7.12, 

Commentary .04. If the value of the Underlying 

Benchmark or the Indicative Fund Value [sic] is not 

being disseminated on at least a 15-second basis 

during the hours the Shares trade on the Exchange, 

the Exchange may halt trading during the day in 

which the interruption to the dissemination of the 

value of the Underlying Benchmark or the 

Indicative Fund Value [sic] occurs. If the 

interruption to the dissemination the value of the 

Underlying Benchmark or the Indicative Fund 

Value [sic] 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. 

14 15 U.S.C. 78f(b). 

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

comprehensive surveillance sharing 

agreements with ICE, LME and NYMEX 

for the purpose of providing information 

in connection with trading in or related 

to futures contracts traded on their 

respective exchanges comprising the 

Underlying Benchmarks. The Exchange 

also notes that CBOT, CME and NYBOT 

are members of the Intermarket 

Surveillance Group (‘‘ISG’’). 

Information Bulletin 

Prior to the commencement of 

trading, the Exchange will inform its 

ETP Holders in an Information Bulletin 

of the special characteristics and risks 

associated with trading the Shares, 

including risks inherent with trading 

the Shares during the Opening and Late 

Trading Sessions when the updated 

Indicative Value is not calculated and 

disseminated and suitability 

recommendation requirements. 

Specifically, the Information Bulletin 

will discuss the following: (1) The 

procedures for purchases and 

redemptions of Shares in Baskets; (2) 

NYSE Arca Equities Rule 9.2(a),11 which 

imposes a duty of due diligence on its 

ETP Holders to learn the essential facts 

relating to every customer prior to 

trading the Shares; (3) how information 

regarding the Indicative Value is 

disseminated; (4) 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 (5) 

trading information. For example, the 

Information Bulletin will advise ETP 

Holders, prior to the commencement of 

trading, of the prospectus delivery 

requirements applicable to the Trust. 

The Exchange notes that investors 

purchasing Shares directly from the 

Funds (by delivery of the Basket 

Amount) 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 the Trust is subject 

to various fees and expenses described 

in each Fund’s Registration Statement. 

The Information Bulletin will also 

reference the fact that there is no 

regulated source of last sale information 

regarding physical commodities, that 

the Commission has no jurisdiction over 

the trading of physical commodities or 

the futures contracts on which the value 

of the Shares is based. 

Trading Halts 

The Exchange will halt trading if it 

becomes aware that a Fund’s NAV or 

disclosure of the portfolio composition 

is not being disseminated or has not 

been disseminated to all market 

participants at the same time.12 In 

addition, the Exchange will halt trading 

in the Shares if the value of an 

Underlying Benchmark is no longer 

calculated or available on at least a 15- 

second basis through one or more major 

market data vendors during the time the 

Shares trade on the Exchange or if an 

Indicative Fund Value [sic] per Share 

updated every 15 seconds is no longer 

calculated or available.13

With respect to trading halts, the 

Exchange may consider all relevant 

factors in exercising its discretion to 

halt or suspend trading in the Shares. 

Trading may be halted because of 

market conditions or for reasons that, in 

the view of the Exchange, make trading 

in the Shares inadvisable. These may 

include: (1) The extent to which trading 

is not occurring in the underlying 

securities; or (2) whether other unusual 

conditions or circumstances detrimental 

to the maintenance of a fair and orderly 

market are present. 

2. Statutory Basis 

The proposed rule change is 

consistent with Section 6(b) 14 of the 

Exchange Act in general and furthers 

the objectives of Section 6(b)(5) 15 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 regulating, clearing, 

settling, processing information with 

respect to, and facilitating transaction in 

securities, and, in general to protect 

investors and the public interest. The 

Exchange believes that the proposal will 

facilitate the listing and trading of 

additional types of commodity and 

currency-based investments that will 

enhance competition among market 

participants, to the benefit of investors 

and the marketplace. 

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 Exchange 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. 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 Exchange 

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–2008–91 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–2008–91. 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 


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52716 Federal Register / Vol. 73, No. 176 / Wednesday, September 10, 2008 / Notices 

16 In approving this 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). 

17 15 U.S.C. 78f(b)(5). 

18See, e.g., Securities Exchange Act Release Nos. 

55268 (February 9, 2007), 72 FR 7793 (February 20, 

2007) (SR–NYSE–2007–03) (approving the listing 

and trading of shares of the CurrencyShares 

Japanese Yen Trust); 54020 (June 20, 2006), 71 FR 

36579 (June 27, 2006) (SR–NYSE–2006–35) 

(approving the listing and trading of shares of six 

CurrencyShares Trusts); and 52843 (November 28, 

2005), 70 FR 72486 (December 5, 2005) (SR–NYSE–

2005–65) (approving the listing and trading of 

shares of the Euro Currency Trust, n/k/a the 

CurrencyShares Euro Trust). See also, e.g., 

Securities Exchange Act Release Nos. 56969 

(December 14, 2007), 72 FR 72424 (December 20, 

2007) (SR–Amex–2007–53) (approving the listing 

and trading of the GreenHaven Continuous 

Commodity Index Fund); 55632 (April 13, 2007), 72 

FR 19987 (April 20, 2007) (SR–Amex–2006–112) 

(approving the listing and trading of the United 

States Natural Gas Fund, LP); 55292 (February 14, 

2007), 72 FR 8406 (February 26, 2007) (SR–Amex 

2006–86) (approving the listing and trading of the 

PowerShares DB U.S. Dollar Index Bullish Fund 

and the PowerShares DB U.S. Dollar Index Bearish 

Fund); 55029 (December 29, 2006), 72 FR 806 

(January 8, 2007) (SR–Amex 2006–76) (approving 

the listing and trading of the DB Multi-Sector 

Commodity Trust); 54450 (September 14, 2006), 71 

FR 55230 (September 21, 2006) (SR–Amex 2006–44) 

(approving the listing and trading of the DB 

Currency Index Value Fund); 53582 (March 31, 

2006), 71 FR 17510 (April 6, 2006) (SR–Amex 

2005–127) (approving the listing and trading of the 

United States Oil Fund, LP); 53521 (March 20, 

2006), 71 FR 14967 (March 24, 2006) (SR–Amex 

2005–072) (approving the listing and trading of the 

iShares Silver Trust); 53105 (January 11, 2006), 71 

FR 3129 (January 19, 2006) (SR–Amex 2005–059) 

(approving the listing and trading of the DB 

Commodity Index Tracking Fund); 53059 (January 

5, 2006), 71 FR 2072 (January 12, 2006) (SR–Amex 

2005–128) (approving the trading of the Euro 

Currency Trust pursuant to UTP); 51058 (January 

19, 2005), 70 FR 3749 (January 26, 2005) (SR–Amex 

2004–38) (approving the listing and trading of the 

iShares COMEX Gold Trust); and 51446 (March 29, 

2005), 70 FR 17272 (April 5, 2005) (SR–Amex–

2005–032) (approving the trading of streetTRACKS 

Gold Shares pursuant to UTP). 19See, e.g., Securities Exchange Act Release Nos. 

56998 (December 19, 2007), 72 FR 73404 (December 

27, 2007) (SR–Amex–2007–104) (approving the 

listing and trading of shares of the ProShares Trust); 

56592 (October 1, 2007), 72 FR 57364 (October 9, 

2007) (SR–Amex –2007–60) (approving the listing 

and trading of shares of the ProShares Trust based 

on international equity indexes); 54040 (June 23, 

2006), 71 FR 37629 (June 30, 2006) (SR–Amex–

2006–41) (approving the listing and trading of 

shares of the ProShares Trust); 55117 (January 17, 

2007), 72 FR 3442 (January 25, 2007) (SR–Amex 

2006–101) (approving the listing and trading of 

shares of the ProShares Trust); and 52553 (October 

3, 2005), 70 FR 59100 (October 11, 2005) (SR–

Amex–2004–62) (approving the listing and trading 

of shares of the xtraShares Trust). 

20The Commission believes that the Exchange’s 

existing rules and procedures are adequate with 

respect to the Shares. However, the Commission 

notes that other proposed series of TIRs may require 

additional Exchange rules and procedures to govern 

their listing and trading on the Exchange. For 

example, in the case of a proposed series of TIRs 

that are based on a portfolio, at least in part, of nonU.S. equity securities, rules relating to 

comprehensive surveillance sharing agreements and 

quantitative initial and continued listing standards 

may be required. 

21 15 U.S.C. 78k–1(a)(1)(C)(iii). 

22E-mail from Tim Malinowski, Director, NYSE 

Euronext, to Edward Cho and Christopher Chow, 

Special Counsels, Division of Trading and Markets, 

Commission, dated September 3, 2008 (confirming 

the means of dissemination of quotations and lastsale information for the Shares). 

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 

Number SR–NYSEArca–2008–91 and 

should be submitted on or before 

October 1, 2008. 

IV. Commission’s Findings and Order 

Granting Accelerated Approval of the 

Proposed Rule Change 

After careful consideration, the 

Commission finds that the proposed 

rule change is consistent with the 

requirements of the Exchange Act and 

the rules and regulations thereunder 

applicable to a national securities 

exchange.16 In particular, the 

Commission believes that the proposal 

is consistent with Section 6(b)(5) of the 

Exchange Act,17 which requires, among 

other things, that the rules of a national 

securities exchange be designed 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. The 

Commission notes that it has permitted 

the listing and trading of TIRs and other 

exchange-traded fund-like products 

linked to the performance of underlying 

currencies and commodities.18 The 

Commission further notes that the 

shares of other UltraFunds and 

UltraShort Funds based on various 

securities indexes have previously been 

approved by the Commission.19

The Exchange proposes to list and 

trade the Shares pursuant to 

Commentary .02 to NYSE Arca Equities 

Rule 8.200.20 NYSE Arca represents that 

the Shares will conform to the existing 

initial and continued listing criteria 

under such rule and must be in 

compliance with NYSE Arca Equities 

Rule 5.3 and Rule 10A–3 under the 

Exchange Act. 

The Commission believes that the 

proposal to list and trade the Shares on 

the Exchange is consistent with Section 

11A(a)(1)(C)(iii) of the Exchange Act,21

which sets forth Congress’ finding that 

it is in the public interest and 

appropriate for the protection of 

investors and the maintenance of fair 

and orderly markets to assure the 

availability to brokers, dealers, and 

investors of information with respect to 

quotations for and transactions in 

securities. Quotations and last-sale 

information for the Shares will be 

disseminated by means of CTA and 

Consolidated Quotation High Speed 

Lines.22 In addition, the value of each 

Underlying Benchmark will be updated 

intra-day on a real time basis as its 

components change in price. The 

Indicative Value will be disseminated at 

least every 15 seconds during the 

Exchange’s Core Trading Session (9:30 

a.m. to 4 p.m. Eastern Time), and the 

NAV of each Fund will be calculated by 

the Administrator and made available to 

all market participants at the same time. 

The Exchange has noted the wide 

availability of information regarding the 

Underlying Benchmarks. For example, 

data regarding spot pricing of the 

Underlying Benchmark commodities 

(gold and silver) is publicly available on 

a 24-hour basis from various financial 

information service providers, such as 

Reuters and Bloomberg. In addition, the 

daily London fix for gold and silver is 

also disseminated by various market 

data vendors and is available from the 

LBMA Web site (http:// 

www.lbma.org.uk). Data regarding 

futures contracts and options on futures 

contracts in connection with the 

Underlying Benchmark commodities is 

also available from NYMEX at http:// 

www.nymex.com. Spot pricing related to 

the foreign currency exchange is 

available to investors and market 

professionals on a 24-hour basis. A 

variety of public Web sites and 

professional and subscription services 

provide market and price information 

regarding the euro and the yen. 

Currency spot prices are also generally 

available from foreign exchange dealers. 

Moreover, each Fund’s total portfolio 

composition will be disclosed on the 

Web site of the Trust (http:// 

www.proshares.com) or another relevant 

Web site as determined by the Trust 

and/or the Exchange. The Trust will 

provide Web site disclosure of portfolio 

holdings daily and will include, as 

applicable, the names and number of 


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Federal Register / Vol. 73, No. 176 / Wednesday, September 10, 2008 / Notices 52717 

23See Commentary .02(d)(2)(ii) and (iii) to NYSE 

Arca Equities Rule 8.200. 24 15 U.S.C. 78s(b)(2). 

25See supra note 3. The Shares have also been 

approved for trading on the Exchange pursuant to 

UTP. See supra note 4. 

26See supra note 18. 

27See supra note 19. 

28 15 U.S.C. 78s(b)(2). 

29 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

Financial Instruments and 

characteristics of such instruments and 

cash equivalents, and amount of cash 

held in the portfolio of each Fund. 

NYSE Arca will also make available on 

its Web site daily trading volume of the 

Shares, closing prices of the Shares, and 

the NAV per Share. In addition, the Web 

sites for the Funds and/or the Exchange 

will publish the following information: 

(a) The current NAV per Share daily and 

the prior business day’s NAV per Share 

and the reported closing price; (b) the 

Bid-Asked Price; (c) calculation of the 

premium or discount of such price 

against the NAV per Share; (d) data in 

chart form displaying the frequency 

distribution of discounts and premiums 

of the Bid-Ask Price against the NAV 

per Share, within appropriate ranges for 

each of the four previous calendar 

quarters; (e) the prospectus; and (f) other 

applicable quantitative information. 

Furthermore, the Commission 

believes that the proposal to list and 

trade the Shares is reasonably designed 

to promote fair disclosure of 

information that may be necessary to 

price the Shares appropriately and to 

prevent trading when a reasonable 

degree of transparency cannot be 

assured. The Commission notes that the 

Exchange will obtain a representation 

from the Trust, prior to listing, that the 

NAV per Share for the Funds will be 

calculated daily, and that the NAV will 

be made available to all market 

participants at the same time. The 

Exchange has represented that the 

disclosure of the portfolio composition 

for each Fund will be made available to 

all market participants at the same time. 

The Exchange may consider the 

suspension of trading in, or removal 

from listing of, the Shares if, among 

others: (1) The value of the underlying 

index or portfolio is no longer 

calculated or available on at least a 15- 

second delayed basis or the Exchange 

stops providing a hyperlink on its Web 

site to any such asset or investment 

value; or (2) the Indicative Value is no 

longer made available on at least a 15- 

second delayed basis.23 Further, 

Commentary .02 to NYSE Arca Equities 

Rules 8.200 sets forth certain 

restrictions, described above, on ETP 

Holders acting as registered Market 

Makers in TIRs to facilitate surveillance. 

The Exchange’s trading halt rules are 

reasonably designed to prevent trading 

in the Shares when transparency is 

impaired. As discussed above, trading 

in the Shares will be halted: (1) If the 

Exchange becomes aware that a Fund’s 

NAV or disclosure of the portfolio 

composition is not being disseminated 

or has not been disseminated to all 

market participants at the same time; or 

(2) if the value of an Underlying 

Benchmark is no longer calculated or 

available on at least a 15-second basis 

through one or more major market data 

vendors during the time the Shares 

trade on the Exchange or if an Indicative 

Value per Share updated every 15 

seconds is no longer calculated or 

available. The Exchange also may 

consider all relevant factors in 

exercising its discretion to halt or 

suspend trading in the Shares. Trading 

may be halted because of market 

conditions or for reasons that make 

trading in the Shares inadvisable, 

including: (1) The extent to which 

trading is not occurring in the 

underlying securities; or (2) whether 

other unusual conditions or 

circumstances detrimental to the 

maintenance of a fair and orderly 

market are present. 

The Commission further believes that 

the trading rules and procedures to 

which the Shares will be subject 

pursuant to this proposal are consistent 

with the Exchange Act. The Exchange 

has represented that the Shares are 

equity securities subject to NYSE Arca’s 

rules governing the trading of equity 

securities. 

In support of this proposal, the 

Exchange has made the following 

representations: 

(1) The Shares will conform to the 

initial and continued listing criteria 

under NYSE Arca Equities Rule 8.200(d) 

and Commentary .02(d) to NYSE Arca 

Equities Rule 8.200. 

(2) The Exchange’s surveillance 

procedures are adequate to properly 

monitor trading of the Shares in all 

trading sessions and to deter and detect 

violations of Exchange rules and 

applicable federal securities laws. 

(3) The Exchange will distribute an 

Information Bulletin, the contents of 

which are more fully described above, 

to ETP Holders in connection with the 

trading of the Shares. 

(4) The Exchange represents that the 

Trust is required to comply with NYSE 

Arca Equities Rule 5.3 and Rule 10A–3 

under the Exchange Act. 

This approval order is based on the 

Exchange’s representations. 

The Commission finds good cause, 

pursuant to Section 19(b)(2) of the 

Act,24 for approving the proposed rule 

change prior to the 30th day after the 

date of publication of notice in the 

Federal Register. The Commission notes 

that it has previously approved the 

listing and trading of the Shares on 

Amex 25 and believes that the 

Exchange’s proposal to list and trade 

such Shares does not appear to present 

any novel or significant regulatory 

issues that should cause it to revisit that 

previous finding. As mentioned above, 

the Shares are substantially similar to 

the shares of other TIRs and exchangetraded products, the shares of which are 

currently listed and trading in the 

marketplace,26 and the Commission has 

previously approved the listing and 

trading of shares of other UltraFunds 

and UltraShort Funds based on various 

securities indexes.27 As such, the 

Commission believes that accelerating 

approval of this proposal should benefit 

investors by creating, without undue 

delay, additional competition in the 

market for such products. 

V. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Exchange Act,28

that the proposed rule change (SR–

NYSEArca–2008–91) be, and it hereby 

is, approved on an accelerated basis. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.29

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–20962 Filed 9–9–08; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58458; File No. SR–

NYSEArca–2008–95] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Relating to Net Asset 

Value Calculations for CurrencyShares 

Trusts 

September 3, 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 

28, 2008, NYSE Arca, Inc. (‘‘NYSE 

Arca’’ 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 Exchange. The 


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