Federal Register / Vol. 75, No. 171 / Friday, September 3, 2010 / Notices 54199 

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

2 17 CFR 240.19b–4. 

3Commentary .02 to NYSE Arca Equities Rule 

8.200 applies to TIRs that invest in ‘‘Financial 

Instruments’’. The term ‘‘Financial Instruments’’, as 

defined in Commentary .02(b)(4) to NYSE Arca 

Equities Rule 8.200, means any combination of 

investments, including cash; securities; options on 

securities and indices; futures contracts; options on 

futures contracts; forward contracts; equity caps, 

collars and floors; and swap agreements. 

4See the Pre-Effective Amendment No. 1 to 

Registration Statement on Form S–1, filed with the 

Commission on June 29, 2010 (No. 333–164811) 

(‘‘Registration Statement’’). The descriptions of the 

Fund and the Shares contained herein are based on 

the Registration Statement. 

5See, e.g., Securities Exchange Act Release No. 

58161 (July 15, 2008), 73 FR 42380 (July 21, 2008) 

(SR–Amex–2008–39) (order approving amendments 

to Amex Rule 1202, Commentary .07 and listing on 

Amex of 14 funds of the Commodities and Currency 

Trust). 

6See, e.g., Securities Exchange Act Release No. 

58163 (July 15, 2008), 73 FR 42391 (July 21, 2008) 

(SR–NYSEArca–2008–73) (order approving UTP 

trading on NYSE Arca of 14 funds of the 

Commodities and Currency Trust). 

7See, e.g., Securities Exchange Act Release No. 

58457 (September 3, 2008), 73 FR 52711 (September 

10, 2008) (SR–NYSEArca–2008–91) (order 

approving lising on NYSE Arca of 14 funds of the 

Commodities and Currency Trust). 

8See, e.g., Securities Exchange Act Release Nos. 

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); 59781 (April 17, 2009), 

74 FR 18771 (April 24, 2009) (SR–NYSEArca–2009– 

28) (order granting accelerated approval for NYSE 

Arca listing the ETFS Silver Trust); 59895 (May 8, 

2009), 74 FR 22993 (May 15, 2009) (SR–NYSEArca– 

2009–40) (order granting accelerated approval for 

NYSE Arca listing the ETFS Gold Trust). 

9Terms relating to the Fund, the Shares and the 

Index referred to, but not defined, herein are 

defined in the Registration Statement. 

make a public offering or engage in 

business of any kind. 

Filing Dates: The applications were 

filed on July 1, 2010, and amended on 

August 4, 2010. 

Applicants’ Address: 280 Park Ave., 

10th Floor, New York, NY 10017. 

Cohen & Steers Global Realty Fund, 

Inc. 

[File No. 811–22009] 

Summary: Applicant seeks an order 

declaring that it has ceased to be an 

investment company. Applicant has 

never made a public offering of its 

securities and does not propose to make 

a public offering or engage in business 

of any kind. 

Filing Dates: The application was 

filed on July 1, 2010, and amended on 

August 4, 2010. 

Applicant’s Address: 280 Park Ave., 

10th Floor, New York, NY 10017. 

General New York Municipal Bond 

Fund, Inc. 

[File No. 811–4074] 

Summary: Applicant seeks an order 

declaring that it has ceased to be an 

investment company. On January 21, 

2010, applicant transferred its assets to 

Dreyfus New York AMT–Free 

Municipal Bond Fund, based on net 

asset value. Expenses of $44,500 

incurred in connection with the 

reorganization were paid by The 

Dreyfus Corporation, applicant’s 

investment adviser. 

Filing Date: The application was filed 

on August 4, 2010. 

Applicant’s Address: c/o The Dreyfus 

Corporation, 200 Park Ave., New York, 

NY 10166. 

American National Investment 

Accounts, Inc. 

[811–6155] 

Summary: Applicant seeks an order 

declaring that it has ceased to be an 

investment company. On or about April 

30, 2010, applicant made a liquidating 

distribution to its shareholders, based 

on net asset value. Expenses of $1,611 

incurred in connection with the 

liquidation were paid by Securities 

Management and Research, Inc., 

applicant’s investment adviser. 

Filing Date: The application was filed 

on July 20, 2010. 

Applicant’s Address: 2450 South 

Shore Blvd., Suite 400, League City, 

Texas 77573. 

For the Commission, by the Division of 

Investment Management, pursuant to 

delegated authority. 

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–22001 Filed 9–2–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62768; File No. SR– 

NYSEArca–2010–78] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing of a 

Proposed Rule Change Relating to 

Listing and Trading of Jefferies 

Commodity Real Return ETF 

August 26, 2010. 

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 17, 2010, 

NYSE Arca, Inc. (‘‘NYSE Arca’’ or the 

‘‘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 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 

The Exchange proposes to list and 

trade shares of Jefferies Commodity Real 

Return ETF under NYSE Arca Equities 

Rule 8.200, Commentary .02. The text of 

the proposed rule change is available at 

the Exchange, the Commission’s Public 

Reference Room, and http:// 

www.nyse.com. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

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 those 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 parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

NYSE Arca Equities Rule 8.200, 

Commentary .02 permits the trading of 

Trust Issued Receipts (‘‘TIRs’’) either by 

listing or pursuant to unlisted trading 

privileges (‘‘UTP’’).3 The Exchange 

proposes to list and trade the shares (the 

‘‘Shares’’) of the Jefferies Commodity 

Real Return ETF (the ‘‘Fund’’) under 

NYSE Arca Equities Rule 8.200.4

The Exchange notes that the 

Commission has previously approved 

the listing and trading of other issues of 

Trust Issued Receipts on the American 

Stock Exchange LLC,5 trading on NYSE 

Arca pursuant to unlisted trading 

privileges (‘‘UTP’’),6 and listing on NYSE 

Arca.7 In addition, the Commission has 

approved other exchange-traded fundlike products linked to the performance 

of underlying commodities.8

Overview of the Fund 9

According to the Registration 

Statement, the Fund will pursue its 


srobinson on DSKHWCL6B1PROD with NOTICES
54200 Federal Register / Vol. 75, No. 171 / Friday, September 3, 2010 / Notices 

10TIPS are marketable securities issued by the 

U.S. Treasury whose principal is adjusted by 

changes in the Consumer Price Index (‘‘CPI’’). With 

inflation (a rise in the CPI), the principal increases. 

With deflation (a drop in the CPI), the principal 

decreases. (Source: http://www.treasurydirect.gov.) 

11A rolling futures position is a position where, 

on a periodic basis, futures contracts on physical 

commodities specifying delivery in a particular 

month are sold and futures contracts specifying 

delivery in a later month are purchased. An 

investor with a rolling futures position is able to 

avoid taking delivery of the underlying physical 

commodity while maintaining exposure to those 

commodities. To maximize liquidity and 

transparency, this ‘‘rolling’’ process for the Index 

Commodities for the Index occurs over the first four 

Business Days of each month according to a fixed 

schedule as described in the Registration Statement. 

12According to the Registration Statement, 

Jefferies Group, Inc.’s policy is to implement 

procedures to prevent the improper sharing of 

information between different departments of the 

company. Specifically, procedures as described in 

the Registration Statement create an information 

barrier between the personnel within Jefferies 

Group, Inc. who sit on the Thomson Reuters/ 

Jefferies CRB Index Oversight Committee and other 

Jefferies Group, Inc.’s personnel of the Managing 

Owner who are involved in making portfolio 

management and trading decisions for the Fund, 

and also are intended to prevent the improper 

sharing of certain Index-related information to 

others who could act on the information to the 

detriment of the Fund. 

13The referenced exchanges with respect to the 

commodities for the Fund, as applicable, are as 

follows: NYMEX (New York Mercantile Exchange); 

COMEX (Commodity Exchange Inc.); LME (The 

London Metal Exchange Limited); CBOT (Chicago 

Board of Trade); CME (Chicago Mercantile 

Exchange); ICE–US, Inc. (ICE Futures U.S.). 

investment objective by investing 

substantially all of its assets in a 

portfolio of exchange traded futures on 

the commodities comprising its 

corresponding index, as described 

below, or other derivatives. The Fund 

establishes long positions in futures 

contracts on the commodities 

comprising the Thomson Reuters/ 

Jefferies CRB 3 Month Forward Index 

(‘‘Index’’), with a view to tracking the 

changes, whether positive or negative, 

in the level of the Index over time. The 

Fund also may invest in one or more 

forward agreements, swaps, or other 

over-the-counter derivatives that 

reference a particular Index Commodity 

(‘‘Futures-Linked Investment’’), as 

described below. The Fund is also 

intended to reflect the excess, if any, of 

its interest income from its investment 

in 3-month U.S. Treasury bills, U.S. 

government issued Treasury Inflation 

Protection Securities (‘‘TIPS’’)10 and 

other high credit quality short-term 

fixed income securities, over its 

expenses. 

Jefferies Commodity Investment 

Services, LLC, a Delaware limited 

liability company, is the Fund’s 

promoter, and will serve as Managing 

Owner of the Fund (the ‘‘Managing 

Owner’’). The Managing Owner will 

serve as the commodity pool operator 

and commodity trading advisor of the 

Fund. The Managing Owner is 

registered as a commodity pool operator 

and commodity trading advisor with the 

Commodity Futures Trading 

Commission (‘‘CFTC’’) and is a member 

of the National Futures Association. The 

Bank of New York Mellon will be the 

administrator, custodian and transfer 

agent of the Fund. ALPS Distributors, 

Inc. will serve as the Fund’s marketing 

agent. 

The Index tracks the changes in the 

closing levels of the futures positions 

that would in three months comprise 

the Thomson Reuters/Jefferies CRB 

Index (‘‘TR/J CRB Index’’). The TR/J CRB 

Index is designed to track the changes 

in the closing levels of nearby rolling 

futures positions.11

The Fund will hold a portfolio of 

futures contracts on the Index 

Commodities (as described below), as 

well as cash, 3-month U.S. Treasury 

bills, TIPS and other high credit quality 

short-term fixed income securities, for 

deposit with the Fund’s Clearing Broker 

(Credit Suisse Securities (USA) LLC), as 

margin. The Fund’s portfolio will be 

traded with a view to tracking the Index 

over time, whether the Index is rising, 

falling or flat over any particular period. 

The Fund is not ‘‘managed’’ by 

traditional methods, which typically 

involve effecting changes in the 

composition of the Fund’s portfolio on 

the basis of judgments relating to 

economic, financial and market 

considerations with a view to obtaining 

positive results under all market 

conditions. To maintain the 

correspondence between the 

composition and weightings of the 

Index Commodities comprising the 

Index, the Managing Owner adjusts the 

Fund’s portfolio from time-to-time to 

conform to periodic changes in the 

identity and/or relative weighting of the 

Index Commodities. The Managing 

Owner will aggregate certain of the 

adjustments and makes changes to the 

Fund’s portfolio at least monthly or 

more frequently in the case of 

significant changes to the Index.12

According to the Registration 

Statement, the Index is designed to 

provide timely and accurate 

representation of a long-only, broadly 

diversified investment in commodities 

through a transparent and disciplined 

calculation methodology. The Index is 

currently composed of futures contracts 

on the following 19 physical 

commodities (each, an ‘‘Index 

Commodity’’ and, collectively, ‘‘Index 

Commodities’’): Aluminum, cocoa, 

coffee, copper, corn, cotton, crude oil, 

gold, heating oil, lean hogs, live cattle, 

natural gas, nickel, orange juice, silver, 

soybeans, sugar, RBOB gasoline, and 

wheat. The Index Commodities 

currently trade on United States futures 

exchanges, with the exception of 

aluminum and nickel, which trade on 

the London Metal Exchange. 

According to the Registration 

Statement, as the Fund approaches or 

reaches position limits with respect to 

certain futures contracts comprising the 

Index and the Managing Owner 

determines in its commercially 

reasonable judgment that it has become 

impracticable or inefficient for any 

reason for the Fund to gain full or 

partial exposure to any Index 

Commodity by investing in a specific 

futures contract that is a part of the 

Index, the Fund may invest in a futures 

contract referencing the particular Index 

Commodity other than the specific 

contract that is a part of the Index, or 

invest in one or more Futures-Linked 

Investments referencing the particular 

Index Commodity, including forward 

agreements, swaps, or other OTC 

derivatives, or in the alternative, invest 

in other futures contracts or FuturesLinked Investments not based on the 

particular Index Commodity if, in the 

commercially reasonable judgment of 

the Managing Owner, such replacement 

instruments tend to exhibit trading 

prices that correlate with a futures 

contract that is a part of the Index. 

According to the Registration 

Statement, the Index uses a four-tiered 

approach to allocate among the Index 

Commodities included in the Index. 

Group I includes only petroleum 

products; Group II includes seven Index 

Commodities which are highly liquid; 

Group III is comprised of four liquid 

Index Commodities; Group IV includes 

Index Commodities that may provide 

diversification. 

All Index Commodities are equally 

weighted within Groups II, III and IV, as 

provided below.13


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Federal Register / Vol. 75, No. 171 / Friday, September 3, 2010 / Notices 54201 

14 17 CFR 240.10A–3. 

15 17 CFR 240.10A–3(c)(7). 

THOMSON REUTERS/JEFFERIES CRB INDEX—THOMSON REUTERS/JEFFERIES CRB 3 MONTH FORWARD INDEX

Group Index commodity 

Index 

weight 

(%) 

Contract months Exchange Trading hours (E.T.) 

I .............. WTI Crude Oil ............................. 23 Jan–Dec ...................................... NYMEX ...................... 10:00 am—2:30 pm. 

Heating Oil .................................. 5 Jan–Dec ...................................... NYMEX ...................... 10:05 am—2:30 pm. 

RBOB Gasoline ........................... 5 Jan–Dec ...................................... NYMEX ...................... 10:05 am—2:30 pm. 

Total 33 

II ............. Natural Gas ................................. 6 Jan–Dec ...................................... NYMEX ...................... 10:00 am—2:30 pm. 

Corn ............................................. 6 Mar, May, Jul, Sep, Dec ............. CBOT ........................ 10:30 am—2:15 pm. 

Soybeans .................................... 6 Jan, Mar, May, Jul, Nov .............. CBOT ........................ 10:30 am—2:15 pm. 

Live Cattle ................................... 6 Feb, Apr, Jun, Aug, Oct, Dec ...... CME .......................... 10:05 am—2:00 pm. 

Gold ............................................. 6 Feb, Apr, Jun, Aug, Dec ............. COMEX ..................... 8:20 am—1:30 pm. 

Aluminum .................................... 6 Mar, Jun, Sep, Dec ..................... LME ........................... 6:55 am—12:00 pm. 

Copper ......................................... 6 Mar, May, Jul, Sep, Dec ............. COMEX ..................... 8:10 am—1:00 pm.

Total 42 

III ............ Sugar ........................................... 5 Mar, May, Jul, Oct ....................... ICE–US ..................... 3:30 am—2:00 pm. 

Cotton .......................................... 5 Mar, May, Jul, Dec ...................... ICE–US ..................... 9:00 pm—2:30 pm. 

Cocoa .......................................... 5 Mar, May, Jul, Sep, Dec ............. ICE–US ..................... 4:00 am—2:00 pm. 

Coffee .......................................... 5 Mar, May, Jul, Sep, Dec ............. ICE–US ..................... 3:30 am—2:00 pm. 

Total 20 

IV ............ Nickel ........................................... 1 Mar, Jun, Sep, Dec ..................... LME ........................... 7:10 am—11:55 am. 

Wheat .......................................... 1 Mar, May, Jul, Sep, Dec ............. CBOT ........................ 10:30 am—2:15 pm. 

Lean Hogs ................................... 1 Feb, Apr, Jun, Jul, Aug, Oct, Dec CME .......................... 9:10 am—1:00 pm. 

Orange Juice ............................... 1 Jan, Mar, May, Jul, Sep, Nov ..... ICE–US ..................... 8:00 am—2:00 pm. 

Silver ........................................... 1 Mar, May, Jul, Sep, Dec ............. COMEX ..................... 8:25 am—1:25 pm. 

Total 5 

The Index is calculated daily by 

Thomson Reuters (Markets) LLC, a 

Thomson Reuters company (‘‘Reuters’’ or 

the ‘‘Index Calculation Agent’’). The 

Index began publishing in April 2007. 

The changes in the closing levels of the 

Index are reported by a number of major 

market data vendors. Reuters is not 

affiliated with a broker dealer. 

Group I of the Index includes only 

petroleum products—WTI crude oil, 

heating oil and RBOB gasoline. 

According to the Registration Statement, 

these Index Commodities are among the 

most economically significant and 

frequently traded and historically have 

contributed meaningfully to the return 

and correlative characteristics of 

commodity benchmark indices. In order 

to reflect the critical role of petroleum 

in the global economy and maintain the 

diversified nature of the Index, the 

Index has assigned an Index Weight of 

33% to the Group I Index Commodities, 

represented by the crude oil, RBOB 

gasoline and heating oil contracts traded 

on the NYMEX. 

Group II is comprised of futures 

contracts on the Index Commodities that 

are traded in markets that are highly 

liquid. These seven markets represent a 

diverse cross section across several 

commodity sectors. Each Index 

Commodity is assigned an Index Weight 

of 6% of the Index. In turn, Group II 

constitutes 42% of the Index. 

Group III is comprised of futures 

contracts on Index Commodities that are 

traded in markets that are liquid. These 

four Index Commodities include a 

second cross section of diverse and 

liquid markets in order to diversify the 

Index. Each Index Commodity in Group 

III is assigned an Index Weight of 5% of 

the Index. In turn, Group III constitutes 

20% of the Index. 

Group IV is comprised of futures 

contracts on Index Commodities that 

may provide additional diversification 

to the Index by increasing the exposure 

of the Index to the Softs, Grains, 

Industrial Metals, Meats and Precious 

Metals markets. Each Index Commodity 

in Group IV is assigned an Index Weight 

of 1% of the Index. In turn, Group IV 

constitutes 5% of the Index. 

Rebalancing Methodology 

According to the Registration 

Statement, the Index employs arithmetic 

averaging with monthly rebalancing, 

while maintaining a uniform exposure 

to the various Index Commodities over 

time. 

The Index Commodities are 

rebalanced monthly, generally following 

the close of business on the sixth 

Business Day of each month, to return 

to the specified dollar weights, 

referenced as ‘‘Index Weight’’ in the 

table above. This rebalancing is 

achieved by selling Index Commodities 

that have gained in value relative to 

other Index Commodities and buying 

Index Commodities that have lost in 

value relative to other Index 

Commodities. This monthly rebalancing 

helps to maintain both the stability and 

consistency of the Index and the 

consistent exposure to the Index 

Weights of the underlying Index 

Commodities over time. 

The Fund will meet the initial and 

continued listing requirements 

applicable to Trust Issued Receipts in 

NYSE Arca Equities Rule 8.200 and 

Commentary .02 thereto. With respect to 

application of Rule 10A–3 14 under the 

Act, the Trust relies on the exception 

contained in Rule 10A–3(c)(7).15 A 

minimum of 100,000 Shares of the Fund 

will be outstanding as of the start of 

trading on the Exchange. 

A more detailed description of the 

Shares, the Fund, the Index and the 

Index Commodities, as well as 

investment risks, is set forth in the 

Registration Statement. 


srobinson on DSKHWCL6B1PROD with NOTICES
54202 Federal Register / Vol. 75, No. 171 / Friday, September 3, 2010 / Notices 

16See NYSE Arca Equities Rule 7.12. 

Availability of Information Regarding 

the Shares 

The Web site for the Fund (http:// 

www.jamfunds.com/jcis) and/or the 

Exchange, which are publicly accessible 

at no charge, will contain the following 

information: (a) The current net asset 

value (‘‘NAV’’) per share daily and the 

prior business day’s NAV and the 

reported closing price; (b) the midpoint 

of the bid-ask price in relation to the 

NAV as of the time the NAV is 

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

calculation of the premium or discount 

of such price against such NAV; (d) the 

bid-ask price of Shares determined 

using the highest bid and lowest offer as 

of the time of calculation of the NAV; 

(e) data in chart form displaying the 

frequency distribution of discounts and 

premiums of the Bid-Ask Price against 

the NAV, within appropriate ranges for 

each of the four previous calendar 

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

applicable quantitative information. The 

Fund will also disseminate Fund 

holdings on a daily basis on the Fund’s 

Web site. 

The Index Calculation Agent 

calculates the closing level of each 

Index on both an excess return basis and 

a total return basis. An excess return 

index reflects the changes in market 

value over time, whether positive or 

negative, of the Index Commodities. A 

total return is the sum of the changes in 

market value over time, whether 

positive or negative, of the Index 

Commodities incorporating the return of 

3-month U.S. Treasury bills. The Fund 

is designed to track the Index as 

calculated on an excess return, not a 

total return, basis. 

In order to calculate the indicative 

Index levels, the Index Calculation 

Agent determines the real time price of 

each Index Commodity every 15 

seconds. The Index Calculation Agent 

then applies a set of rules to these 

values to create the indicative level of 

the Index. These rules are consistent 

with the rules which the Index 

Calculation Agent applies at the end of 

each trading day to calculate the closing 

levels of the Index. 

The Intra-day Indicative Value (‘‘IIV’’) 

per Share of the Fund is calculated by 

applying the percentage price change of 

the Fund’s holdings in futures contracts 

to the last published NAV of the Fund. 

The Index Calculation Agent will 

publish this value every 15 seconds 

through one or more major market data 

vendors. The Index Calculation Agent 

will publish the closing level of the 

Index daily. The Managing Owner will 

publish the NAV of the Fund and the 

NAV per Share of the Fund daily. 

Additionally, the Index Calculation 

Agent will publish the intra-day level of 

the Index, and the Managing Owner will 

publish the indicative value per Share 

of the Fund (quoted in U.S. dollars) 

once every fifteen seconds throughout 

each trading day. All of the foregoing 

information will be published as 

follows: 

The intra-day level of the Index and 

the IIV per Share of the Fund (each 

quoted in U.S. dollars) will be 

published once every fifteen seconds 

throughout each trading day through 

one or more major market data vendors 

and on the Managing Owner’s Web site. 

The most recent end-of-day Index 

closing level will be published as of the 

close of the NYSE Arca each trading day 

on the consolidated tape, Reuters and/ 

or Bloomberg and on the Managing 

Owner’s Web site. 

The most recent end-of-day NAV of 

the Fund will be published as of the 

close of business by major market data 

vendors and on the Managing Owner’s 

Web site. In addition, the most recent 

end-of-day NAV of the Fund will be 

published the following morning on the 

consolidated tape. 

The NAV for the Fund will be 

disseminated to all market participants 

at the same time. The Exchange also 

will disseminate on a daily basis via 

CTA information with respect to recent 

NAV and shares outstanding. The 

Exchange will also make available on its 

Web site daily trading volume of each 

of the Shares, closing prices of such 

Shares, and the corresponding NAV. 

The closing prices and settlement prices 

of futures on the Index Commodities are 

also readily available from the Web sites 

of the applicable futures exchanges, 

automated quotation systems, published 

or other public sources, or on-line 

information services such as Bloomberg 

or Reuters. The relevant futures 

exchanges also provide delayed futures 

information on current and past trading 

sessions and market news free of charge 

on their respective Web sites. The 

specific contract specifications for the 

futures contracts are also available on 

such Web sites, as well as other 

financial informational sources. 

Quotation and last-sale information 

regarding the Shares will be 

disseminated through the facilities of 

the CTA. 

Dissemination of Intra-Day Indicative 

Value 

In addition, in order to provide 

updated information relating to the 

Fund for use by investors and market 

professionals, an updated IIV will be 

calculated. The IIV is calculated by 

using the prior day’s closing NAV per 

share of the Fund as a base and 

updating that value throughout the 

trading day to reflect changes in the 

value of the Index Commodities. The IIV 

disseminated during NYSE Arca trading 

hours should not be viewed as an actual 

real time update of the NAV, which is 

calculated only once a day. 

The IIV will be disseminated on a per 

Share basis by one or more major market 

data vendors every 15 seconds during 

NYSE Arca Core Trading Session of 9:30 

a.m. to 4 p.m. Eastern Time (‘‘E.T.’’). The 

value of a Share may be influenced by 

non-concurrent trading hours between 

NYSE Arca and the applicable futures 

exchange when the Shares are traded on 

NYSE Arca after normal trading hours of 

such futures exchanges. 

The Exchange believes that 

dissemination of the IIV provides 

additional information regarding the 

Fund that is not otherwise available to 

the public and is useful to professionals 

and investors in connection with the 

related Shares trading on the Exchange 

or the creation or redemption of such 

Shares. 

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. Shares will trade on 

the NYSE Arca Marketplace from 4 a.m. 

to 8 p.m. E.T. The Exchange has 

appropriate rules to facilitate 

transactions in the Shares during all 

trading sessions. 

The trading of the Shares will be 

subject to NYSE Arca Equities Rule 

8.200(e), which sets forth certain 

restrictions on ETP Holders acting as 

registered Market Makers in Trust 

Issued Receipts to facilitate 

surveillance. See ‘‘Surveillance’’ below 

for more information. 

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 

futures contracts, or (2) whether other 

unusual conditions or circumstances 

detrimental to the maintenance of a fair 

and orderly market are present. In 

addition, trading in Shares will be 

subject to trading halts caused by 

extraordinary market volatility pursuant 

to the Exchange’s ‘‘circuit breaker’’ 

rule 16 or by the halt or suspension of 


srobinson on DSKHWCL6B1PROD with NOTICES
Federal Register / Vol. 75, No. 171 / Friday, September 3, 2010 / Notices 54203 

17The Exchange notes that not all futures 

contracts or other financial instruments held by the 

Fund may trade on markets that are members of ISG 

or with which the Exchange has in place a 

comprehensive surveillance sharing agreement. 

18 15 U.S.C. 78f(b). 

19 15 U.S.C. 78f(b)(5). 

trading of the underlying futures 

contracts. 

The Exchange represents that the 

Exchange may halt trading during the 

day in which the interruption to the 

dissemination of the IIV, the Index or 

the value of the underlying futures 

contracts occurs. If the interruption to 

the dissemination of the IIV, the Index 

or the value of the underlying futures 

contracts 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. In addition, if the 

Exchange becomes aware that the NAV 

with respect to the Shares is not 

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. 

Surveillance 

The Exchange intends to utilize its 

existing surveillance procedures 

applicable to derivative products, 

including Trust Issued Receipts, 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, the physical commodities 

included in, or options, futures or 

options on futures on, Shares through 

ETP Holders, in connection with such 

ETP Holders’ proprietary or customer 

trades through ETP Holders which they 

effect on any relevant market. The 

Exchange can obtain market 

surveillance information, including 

customer identity information, with 

respect to transactions occurring on the 

exchanges that are members of the 

Intermarket Surveillance Group 

(‘‘ISG’’).17 CME Group, Inc., which 

includes CME, CBOT, NYMEX and 

COMEX, is a member of ISG. In 

addition, the Exchange has entered into 

a comprehensive surveillance sharing 

agreement with LME and ICE Futures 

U.S. that applies with respect to trading 

in futures on the applicable Index 

Commodities. A list of ISG members is 

available at http://www.isgportal.org. 

In addition, with respect to Fund 

assets traded on exchanges, not more 

than 10% of the weight of such assets 

in the aggregate shall consist of 

components whose principal trading 

market is not a member of ISG or is a 

market with which the Exchange does 

not have a comprehensive surveillance 

sharing agreement. 

The Exchange also has a general 

policy prohibiting the distribution of 

material, non-public information by its 

employees. 

Information Bulletin 

Prior to the commencement of 

trading, the Exchange will inform its 

ETP Holders in an Information Bulletin 

of the special characteristics and risks 

associated with trading the Shares. 

Specifically, the Information Bulletin 

will discuss the following: (1) The risks 

involved in trading the Shares during 

the Opening and Late Trading Sessions 

when an updated IIV will not be 

calculated or publicly disseminated; (2) 

the procedures for purchases and 

redemptions of Shares in Creation 

Baskets and Redemption Baskets (and 

that Shares are not individually 

redeemable); (3) NYSE Arca Equities 

Rule 9.2(a), 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; (4) 

how information regarding the IIV is 

disseminated; (5) the requirement that 

ETP Holders deliver a prospectus to 

investors purchasing newly issued 

Shares prior to or concurrently with the 

confirmation of a transaction; and (6) 

trading information. 

In addition, the Information Bulletin 

will advise ETP Holders, prior to the 

commencement of trading, of the 

prospectus delivery requirements 

applicable to the Fund. The Exchange 

notes that investors purchasing Shares 

directly from the Fund will receive a 

prospectus. ETP Holders purchasing 

Shares from the Fund for resale to 

investors will deliver a prospectus to 

such investors. The Information Bulletin 

will also discuss any exemptive, noaction and interpretive relief granted by 

the Commission from any rules under 

the Act. 

In addition, the Information Bulletin 

will reference that the Fund is subject 

to various fees and expenses described 

in the Registration Statement. The 

Information Bulletin will also reference 

that the CFTC has regulatory 

jurisdiction over the Index Commodities 

traded on U.S. markets. 

The Information Bulletin will also 

disclose the trading hours of the Shares 

of the Fund and that the NAV for the 

Shares is calculated after 4 p.m. E.T. 

each trading day. The Bulletin will 

disclose that information about the 

Shares of the Funds is publicly available 

on the Fund’s Web site. 

2. Statutory Basis 

The proposed rule change is 

consistent with Section 6(b) of the 

Act,18 in general, and furthers the 

objectives of Section 6(b)(5),19 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 

mechanism of a free and open market 

and a national market system. The 

Exchange believes that the proposed 

rule change will permit the listing of an 

additional issuance of Trust Issued 

Receipts on the Exchange that will 

enhance competition among market 

participants, to the benefit of investors 

and the marketplace. In addition, the 

listing and trading criteria set forth in 

Rule 8.200 are intended to protect 

investors and the public interest. 

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 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or within such longer period 

up to 90 days (i) as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding or (ii) as to which 

the self-regulatory organization 

consents, the Commission will: 

(A) By order approve or disapprove 

the proposed rule change, or 


srobinson on DSKHWCL6B1PROD with NOTICES
54204 Federal Register / Vol. 75, No. 171 / Friday, September 3, 2010 / Notices 

20 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release Nos. 58179 

(July 17, 2008), 73 FR 42874 (July 23, 2008) (SR– 

Phlx–2008–31); and 58183 (July 17, 2008), 73 FR 

42850 (July 23, 2008) (SR–NASDAQ–2008–035). 

4Additionally, the proposed limited liability 

company agreement of the Exchange (the ‘‘LLC 

Agreement’’) post-conversion is consistent in form 

and scope with the Second Amended and Restated 

Limited Liability Company Agreement of The 

Nasdaq Stock Market LLC, dated as of July 9, 2009 

(the ‘‘NSM LLC Agreement’’). See Securities 

Exchange Act Release No. 34–53128 (Jan. 13, 2006), 

71 FR 3550 (January 23, 2006), (approval of 

(B) institute proceedings to determine 

whether the proposed rule change 

should be disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s Internet 

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

rules/sro.shtml); or 

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

Number SR–NYSEArca–2010–78 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 

Securities and Exchange Commission, 

Station Place, 100 F Street, NE., 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–NYSEArca–2010–78. This 

file number should be included on the 

subject line if e-mail is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

Internet Web site (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for inspection and copying in 

the Commission’s Public Reference 

Room, 100 F Street, NE., Washington, 

DC 20549, on official business days 

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

Copies of such filing also will be 

available for inspection and copying at 

the principal office of the Exchange. All 

comments received will be posted 

without change; the Commission does 

not edit personal identifying 

information from submissions. You 

should submit only information that 

you wish to make publicly available. All 

submissions should refer to File 

Number SR–NYSEArca–2010–78 and 

should be submitted on or before 

September 24, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.20

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–22111 Filed 9–2–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62783; File No. SR–Phlx– 

2010–104] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX, Inc.; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Relating to the 

Conversion of NASDAQ OMX PHLX, 

Inc. to a Limited Liability Company 

August 27, 2010. 

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

Securities Exchange Act of 1934 

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

notice is hereby given that on August 

16, 2010, NASDAQ OMX PHLX, Inc. 

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

Securities and Exchange Commission 

(‘‘SEC’’ or ‘‘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 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 

The Exchange proposes to convert 

NASDAQ OMX PHLX, Inc. from a 

Delaware corporation to a Delaware 

limited liability company (a ‘‘Delaware 

LLC’’). This proposal is solely a 

technical rule change. There are no new 

regulatory issues implicated in this 

proposal. Further, the Exchange is not 

proposing any material changes, but 

rather only amendments to make 

technical conforming changes to the 

formation documents to correspond 

with the LLC conversion. All 

substantive provisions that govern an 

exchange are consistent with the Act 

and remain intact. The Exchange’s 

proposed formation documents, 

including the Certificate of Formation, 

Limited Liability Agreement and ByLaws, are consistent in form and scope 

with the most recent governing 

documents that were approved by the 

Commission. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://www.nasdaqtrader.com/ 

micro.aspx?id=PHLXRulefilings, at the 

principal office of the Exchange, on the 

Commission’s Web site at http:// 

www.sec.gov, 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 purpose of the proposed rule 

change is to convert NASDAQ OMX 

PHLX, Inc. from a Delaware corporation 

to a Delaware LLC. The NASDAQ OMX 

Group, Inc. acquired NASDAQ OMX 

PHLX, Inc. (formerly the Philadelphia 

Stock Exchange, Inc.) on July 24, 2008.3

At this time, The NASDAQ OMX Group, 

Inc. proposes to convert NASDAQ OMX 

PHLX, Inc., a Delaware corporation to 

NASDAQ OMX PHLX LLC, a Delaware 

limited liability company (the ‘‘LLC’’), to 

more closely conform its organizational 

structure to that of other NASDAQ OMX 

entities. Pursuant to the Delaware 

Limited Liability Company Act, as 

amended from time to time (the ‘‘LLC 

Act’’), the LLC will continue the 

existence of NASDAQ OMX PHLX, Inc. 

and all rights, privileges, powers, 

property and liabilities shall vest in the 

LLC at the time of conversion. As such, 

this proposed rule change will merely 

effect a change in entity form of the 

Exchange and have no substantive effect 

on the current rights and obligations of 

the current members and owners of the 

Exchange.4


srobinson on DSKHWCL6B1PROD with NOTICES