52710 Federal Register / Vol. 73, No. 176 / Wednesday, September 10, 2008 / Notices 

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

8 15 U.S.C. 78s(b)(3)(A). 

9 17 CFR 240.19b–4(f)(6). 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Securities Exchange Act Release No. 58227 (July 

25, 2008), 43 FR 44793 (July 31, 2008). 

4The current FINRA rulebook consists of two sets 

of rules: (1) NASD Rules and (2) rules incorporated 

from NYSE (‘‘Incorporated NYSE Rules’’) (together 

referred to as the ‘‘Transitional Rulebook’’). The 

Incorporated NYSE Rules apply only to those 

members of FINRA that are also members of the 

NYSE (‘‘Dual Members’’). Dual Members also must 

comply with NASD Rules. For more information 

about the rulebook consolidation process, see 

FINRA Information Notice, March 12, 2008 

(‘‘Rulebook Consolidation Process’’). 

also prohibits any SRO from having a 

price test. As a result, the Nasdaq bid 

test (which was the basis for the 

adoption of CBOE 15.10) was 

superseded by Regulation SHO, thus 

rendering CBOE Rule 15.10 obsolete. 

The purpose of this filing is to delete the 

obsolete rule text. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the requirements provided under 

Section 6(b)(5) 7 of the Act, that the 

rules of an exchange be designed to 

promote just and equitable principles of 

trade, to prevent fraudulent and 

manipulative acts and, in general, to 

protect investors and the public interest. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

CBOE does not believe that the 

proposed rule change will impose any 

burden on competition 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 

Because the foregoing proposed rule 

does not (i) significantly affect the 

protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate if 

consistent with the protection of 

investors and the public interest, 

provided that the self-regulatory 

organization has given the Commission 

written notice of its intent to file 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 proposed rule change 

has become effective pursuant to 

Section 19(b)(3)(A) of the Act 8 and Rule 

19b–4(f)(6) thereunder.9 At any time 

within 60 days of the filing of such 

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–CBOE–2008–94 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–CBOE–2008–94. 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 am and 3 pm. 

Copies of such filing also will be 

available for inspection and copying at 

the principal office of the CBOE. 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–CBOE–2008–94 and should 

be submitted on or before October 1, 

2008. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–20961 Filed 9–9–08; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58461; File No. SR–FINRA–

2008–033] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Order Approving 

Proposed Rule Change and 

Amendment No. 1 Thereto To Adopt 

FINRA Rule 4560 (Short-Interest 

Reporting) in the Consolidated FINRA 

Rulebook 

September 4, 2008. 

I. Introduction 

On June 23, 2008 the Financial 

Industry Regulatory Authority, Inc. 

(‘‘FINRA’’) (f/k/a National Association 

of Securities Dealers, Inc. (‘‘NASD’’)) 

filed with the Securities and Exchange 

Commission (‘‘Commission’’ or ‘‘SEC’’) 

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 adopt the short 

interest reporting requirements (NASD 

Rule 3360 and Incorporated NYSE Rules 

421(1) and 421.10) as FINRA Rule 4560 

in the consolidated FINRA rulebook. On 

July 16, 2008, FINRA submitted 

Amendment No. 1 to the proposed rule 

change. The proposed rule change, as 

amended, was published for comment 

in the Federal Register on July 31, 

2008.3 The Commission received no 

comment letters on the proposed rule 

change. This order approves the 

proposed rule change, as amended. 

II. Description of the Proposed Rule 

Change 

As part of the process of developing 

the new consolidated rulebook 

(‘‘Consolidated FINRA Rulebook’’),4


pwalker on PROD1PC71 with NOTICES
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, 


pwalker on PROD1PC71 with NOTICES