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 


pwalker on PROD1PC71 with NOTICES
52718 Federal Register / Vol. 73, No. 176 / Wednesday, September 10, 2008 / Notices 

3See Post-Effective Amendment No. 1 to Form S–

1 for CurrencyShares Australian Dollar Trust 

(Registration No. 333–132362, dated February 8, 

2008); CurrencyShares British Pound Trust 

(Registration No. 333–132361, dated February 8, 

2008); CurrencyShares Canadian Dollar Trust 

(Registration No. 333–132363, dated February 8, 

2008); CurrencyShares Euro Trust (Registration No. 

333–125581, dated February 1, 2008); 

CurrencyShares Japanese Yen Trust (Registration 

No. 333–138881, dated February 12, 2008); 

CurrencyShares Swiss Franc Trust (Registration No. 

333–132364, dated February 1, 2008); Prospectus 

Supplement No. 11 for the CurrencyShares Mexican 

Peso Trust (Registration No. 333–132367, dated 

June 13, 2008); Prospectus Supplement No. 10 for 

the CurrencyShares Swedish Krona Trust 

(Registration No. 132366, dated June 13, 2008) 

(collectively, ‘‘Registration Statements’’). The shares 

of the Trusts represent units of fractional undivided 

beneficial interest in, and ownership of, the 

respective Trust. The investment objective of the 

Trusts is for the shares issued by the Trusts to 

reflect the price of the applicable foreign currency 

owned by the specific Trust, plus accrued interest, 

less the expenses and liabilities of such Trust, 

according to the Registration Statements. The shares 

are intended to provide institutional and retail 

investors with a simple, cost-effective means of 

hedging their exposure to a particular foreign 

currency and otherwise implement investment 

strategies that involve foreign currency (e.g., 

diversify more generally against the risk that the 

U.S. Dollar (‘‘USD’’) would depreciate). 

4See 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). 

5See Securities Exchange Act Release Nos. 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 Euro Currency Trust, now known as 

the CurrencyShares Euro Trust); 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); 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). 

6As described in the above-noted previous 

proposed rule changes by the Exchange and the 

NYSE relating to the Trusts, on each day that the 

NYSE is open for regular trading, The Bank of New 

York (‘‘Trustee’’) will determine the NAV of each 

of the Trusts. In so doing, the Trustee values the 

foreign currency held by the Trusts on the basis of 

the Noon Buying Rate, which is the USD/applicable 

foreign currency exchange rate as determined by the 

Federal Reserve Bank of New York as of 12 p.m. 

(New York time) on each day that the NYSE is open 

for regular trading. The Sponsor (Rydex Specialized 

Products LLC) publishes each Trust’s NAV each 

business day on its Web site. 

7Closing Spot Rate will be defined in the 

Registration Statements as ‘‘the [Foreign Currency]/ 

USD exchange rate as determined by WM/Reuters 

at 4 p.m. (London time)’’. WM/Reuters is a joint 

venture of The WM Company PLC and Thomson 

Reuters. 

8The Exchange will obtain a representation from 

the Trusts that the NAV per Share will be 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

NYSE Arca, through its wholly-owned 

subsidiary NYSE Arca Equities, Inc. 

(‘‘NYSE Arca Equities’’), proposes to 

provide a description of the revised 

methodology for calculating net asset 

value (‘‘NAV’’) to be implemented by 

the CurrencyShares Euro Trust; 

CurrencyShares Australian Dollar Trust; 

CurrencyShares British Pound Sterling 

Trust; CurrencyShares Canadian Dollar 

Trust; CurrencyShares Japanese Yen 

Trust; CurrencyShares Mexican Peso 

Trust; CurrencyShares Swedish Krona 

Trust; and CurrencyShares Swiss Franc 

Trust. The text of the proposed rule 

change is available on the Exchange’s 

Web site at www.nyx.com, at the 

Exchange’s principal office and at the 

Commission’s Public Reference Room. 

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. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to provide a 

description of the revised methodology 

for calculating net asset value (‘‘NAV’’) 

to be implemented by the 

CurrencyShares Euro Trust; 

CurrencyShares Australian Dollar Trust; 

CurrencyShares British Pound Sterling 

Trust; CurrencyShares Canadian Dollar 

Trust; CurrencyShares Japanese Yen 

Trust; CurrencyShares Mexican Peso 

Trust; CurrencyShares Swedish Krona 

Trust; and CurrencyShares Swiss Franc 

Trust (the ‘‘Trusts’’).3 The Commission 

has previously approved the Trusts for 

listing on the Exchange pursuant to 

NYSE Arca Equities Rule 8.202 

(‘‘Currency Trust Shares’’).4 The Trusts 

were previously listed on the New York 

Stock Exchange LLC (‘‘NYSE’’).5

Each of the Trusts currently utilizes 

the Federal Reserve Bank of New York 

Noon Buying Rate in calculating the 

NAV for the Trusts and for shares 

(‘‘Shares’’) of the Trusts.6 The NAV is 

posted on the Trusts’ Web site 

(www.currencyshares.com) as soon as 

the valuation of the foreign currency 

held by a Trust is complete (ordinarily 

by 2 p.m. (New York time)). Ordinarily, 

it is posted no more than thirty minutes 

after the Noon Buying Rate is published 

by the Federal Reserve Bank of New 

York. 

As of the operative date of this 

proposed rule change, the Trusts intend 

to utilize a revised methodology for 

calculating NAV, as follows. To 

calculate the NAV, the Trustee adds to 

the amount of foreign currency in the 

Trust at the end of the preceding 

business day accrued but unpaid 

interest, the foreign currency receivable 

under pending purchase orders and the 

value of other Trust assets, and subtracts 

the accrued but unpaid Sponsor’s fee, 

the foreign currency payable under 

pending redemption orders and other 

Trust expenses and liabilities, if any. 

The result is the NAV of the Trust for 

that business day. The Trustee shall also 

divide the NAV of each Trust by the 

number of Shares outstanding for the 

date of the evaluation then being made, 

which figure is the ‘‘NAV per Share.’’

The NAV will be expressed in USD 

based on the Closing Spot Rate 7 as 

determined by WM/Reuters at 4 p.m. 

(London time). If, on a particular 

evaluation day, the Closing Spot Rate 

has not been determined and 

announced by 6 p.m. (London time), 

then the most recent Closing Spot Rate 

shall be used to determine the NAV of 

the Trust unless the Trustee, in 

consultation with the Sponsor, 

determines that such price is 

inappropriate to use as the basis for 

such valuation. In the event that the 

Trustee and the Sponsor determine that 

the most recent Closing Spot Rate is not 

an appropriate basis for valuation of the 

Trust’s currency, the Trustee and the 

Sponsor shall determine an alternative 

basis for such evaluation to be 

employed by the Trustee. Such an 

alternative basis may include reference 

to the market price of futures contracts 

that reflect the value of the foreign 

currency relative to the USD. The use of 

any alternative basis to determine NAV 

would be disclosed on the Trust’s Web 

site. The Trustee also determines the 

NAV per Share, which equals the NAV 

of the Trust divided by the number of 

outstanding Shares. The Sponsor 

publishes the NAV and NAV per Share 

for each Trust on each day that the 

Exchange is open for regular trading on 

the Trusts’ Web site.8


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Federal Register / Vol. 73, No. 176 / Wednesday, September 10, 2008 / Notices 52719 

calculated daily and made available to all market 

participants at the same time. 

9See ‘‘Spot & Forward Rates Guide’’ published by 

WM/Reuters, available at www.wmcompany.com. 

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

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

12 15 U.S.C. 78s(b)(3)(A). 

13 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–

4(f)(6)(iii) requires a self-regulatory organization to 

provide the Commission with written notice of its 

intent to file the proposed rule change, along with 

a brief description and text of the proposed rule 

change, at least five business days prior to the date 

of filing of the proposed rule change, or such 

shorter time as designated by the Commission. The 

Exchange has fulfilled this requirement. 

14E-mail from Tim Malinowski, Director, NYSE 

Euronext, to Edward Cho, Special Counsel, Division 

of Trading and Markets, Commission, dated 

September 3, 2008. 15 17 CFR 200.30–3(a)(12). 

The Exchange understands that the 

Closing Spot Rate as determined by 

WM/Reuters is an internationally 

accepted currency exchange rate and is 

the rate generally used in currency swap 

transactions. The Closing Spot Rate for 

various currencies is published in the 

Financial Times. According to WM/ 

Reuters, the majority of main equity and 

bond index compilers use the WM/ 

Reuters exchange rates in their 

calculations.9 The Exchange believes 

that the WM/Reuters Closing Spot Rate 

is a widely-accepted, transparent and 

widely-disseminated measure of 

currency exchange rates and does not 

believe that a transition to using WM/ 

Reuters data will adversely impact 

investors or market transparency. 

Prior to implementation of the revised 

NAV calculation procedures as 

described above, the Exchange will 

issue an Information Bulletin informing 

ETP Holders of the new procedures and 

that the NAV for the Trusts will be 

available on the Trusts’ Web site. Notice 

to investors of changes to the NAV 

calculation methodology will be posted 

on the Trusts’ Web site. In addition, the 

Registration Statements will be 

supplemented to reflect the revised 

methodology. 

2. Statutory Basis 

The proposed rule change is 

consistent with Section 6(b) 10 of the 

Act, in general, and furthers the 

objectives of Section 6(b)(5),11 in 

particular, in that it is designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, to foster 

cooperation and coordination with 

persons engaged in facilitating 

transactions in securities, and to remove 

impediments to and perfect the 

mechanisms of a free and open market 

and a national market system. The 

Exchange believes that the proposed 

revisions to NAV calculation 

methodology for the Trusts will 

continue to ensure transparency of the 

NAV calculation based upon widelyaccepted information sources. 

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 

No written comments were solicited 

or received with respect to the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The Exchange 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. Therefore, the foregoing rule 

change has become effective pursuant to 

Section 19(b)(3)(A) of the Act 12 and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.13

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. 

NYSE Arca believes that the proposed 

rule change is noncontroversial in that 

the Trusts will continue to use an 

internationally-accepted, transparent 

and widely-disseminated measure of 

currency exchange rates as the basis for 

NAV calculation. Use of the Closing 

Spot Rate by the Trusts in place of the 

Noon Buying Rate should not adversely 

impact investors or market 

transparency.14

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–2008–95 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–2008–95. 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 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–2008–95 and should be 

submitted on or before October 1, 2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–20963 Filed 9–9–08; 8:45 am] 

BILLING CODE 8010–01–P 


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