Federal Register / Vol. 75, No. 209 / Friday, October 29, 2010 / Notices 66815 

9 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The Commission has previously approved 

listing and trading of ICUs based on certain fixed 

income indexes. See, e.g., Securities Exchange Act 

Release No. 48662 (October 20, 2003), 68 FR 61535 

(October 28, 2003) (SR–PCX–2003–41) (approving 

listing and trading pursuant to unlisted trading 

privileges (‘‘UTP’’) of fixed income funds and the 

UTP trading of certain iShares® fixed income 

funds). In addition, the Commission has approved 

NYSE Arca generic listing rules for Investment 

Company Units based on a fixed income index in 

Securities Exchange Act Release No. 55783 (May 

17, 2007), 72 FR 29194 (May 24, 2007) (SR– 

NYSEArca–2007–36). The Commission has 

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

Exchange Act the listing on the American Stock 

Exchange of exchange traded funds based on fixed 

income indexes. See, e.g., Securities Exchange Act 

Release No. 48534 (September 24, 2003), 68 FR 

56353 (September 30, 2003) (SR–Amex–2003–75) 

(order approving listing on Amex of eight series of 

iShares Lehman Bond Funds). In addition, the 

Commission recently has approved for listing on 

NYSE Arca under NYSE Arca Equities Rule 8.600 

(‘‘Managed Fund Shares’’) two actively managed 

ETFs of the PIMCO ETF Trust that hold municipal 

bonds. See Securities Exchange Act Release No. 

60981 (August 27 [sic], 2009) (SR–NYSEArca– 

2009–79) (order approving [sic] PIMCO Short-Term 

Municipal Bond Strategy Fund and PIMCO 

Intermediate Municipal Bond Strategy Fund, among 

others). 

4See Registration Statement on Form N–1A for 

the Trust filed with the Securities and Exchange 

Commission on September 30, 2010 (File Nos. 333– 

92935 and 811–09729) (the ‘‘Registration 

Statement’’). The descriptions of the Fund and the 

Shares contained herein are based on information 

in the Registration Statement. 

5Commentary .02(a)(2) to NYSE Arca Equities 

Rule 5.2(j)(3) provides components of an index or 

portfolio underlying a series of ICUs that in the 

aggregate account for at least 75% of the weight of 

the index or portfolio each must have a minimum 

original principal amount outstanding of $100 

million or more. 

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 Web site viewing and 

printing 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–C2– 

2010–006 and should be submitted on 

or before November 19, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–27360 Filed 10–28–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63176; File No. SR– 

NYSEArca–2010–94] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Relating to the Listing of 

the iShares® Taxable Municipal Bond 

Fund 

October 25, 2010. 

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

Securities Exchange Act of 1934 (‘‘Act’’ 

or ‘‘Exchange Act’’) 1 and Rule 19b–4 

thereunder,2 notice is hereby given that, 

on October 21, 2010, 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 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 under NYSE Arca Equities Rule 

5.2(j)(3), Commentary .02, the following 

series of the iShares® Trust: iShares®

Taxable Municipal Bond Fund. The text 

of the proposed rule change is available 

at the Exchange, the Commission’s 

Public Reference Room, and the 

Exchange’s Web site at 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 

The Exchange proposes to list and 

trade shares (‘‘Shares’’) of the following 

series of the iShares® Trust (‘‘Trust’’) 

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

Commentary .02, which governs the 

listing and trading of Investment 

Company Units (‘‘ICUs’’): iShares®

Taxable Municipal Bond Fund 

(‘‘Fund’’).3

The Trust is registered with the 

Commission as an investment company 

under the Investment Company Act of 

1940 (‘‘1940 Act’’) (15 U.S.C. 80a).4

Blackrock Fund Advisors serves as the 

investment adviser (‘‘Adviser’’) to the 

Fund. 

Description of the Shares and the Fund 

According to the Registration 

Statement, the Fund seeks investment 

results that correspond generally to the 

price and yield performance, before fees 

and expenses, of The BofA Merrill 

Lynch Broad U.S. Taxable Municipal 

Securities Index (the ‘‘Underlying 

Index’’). 

The Underlying Index measures the 

performance of investment-grade 

taxable debt securities of the U.S. 

municipal bond market. As of October 

1, 2010, there were 1,779 issues in the 

Underlying Index. 

The Underlying Index includes fixedrate municipal bonds issued publicly in 

the U.S. market by U.S. States and 

territories and their political 

subdivisions. The interest payments on 

the bonds in the Underlying Index are 

generally subject to U.S. Federal income 

taxes. Each bond must have an 

investment grade rating based on the 

average rating by Moody’s Investors 

Service, Inc. (‘‘Moody’s’’), Standard & 

Poor’s Financial Services LLC (a 

subsidiary of The McGraw-Hill 

Companies, Inc.) (‘‘S&P’’), and Fitch, Inc. 

(‘‘Fitch’’). Each bond must be 

denominated in U.S. dollars. 

The Exchange is submitting this 

proposed rule change because the 

Underlying Index for the Fund does not 

meet all of the ‘‘generic’’ listing 

requirements of Commentary .02(a) to 

NYSE Arca Equities Rule 5.2(j)(3) 

applicable to listing of ICUs based on 

fixed income indexes. The Underlying 

Index meets all such requirements 

except for those set forth in 

Commentary .02(a)(2).5 Specifically, as 

of October 1, 2010, 70.85% of the 

weight of the Underlying Index 

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66816 Federal Register / Vol. 75, No. 209 / Friday, October 29, 2010 / Notices 

6 17 CFR 240.10A–3. 

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

44551 (July 12, 2001), 66 FR 37716 (July 19, 2001) 

(SR–PCX–2001–14) (order approving generic listing 

standards for ICUs and Portfolio Depositary 

Receipts); Securities Exchange Act Release No. 

41983 (October 6, 1999), 64 FR 56008 (October 15, 

1999) (SR–PCX–98–29) (order approving rules for 

listing and trading of ICUs). 

8 15 U.S.C. 78f(b)(5). 

9 15 U.S.C. 78s(b)(3)(A). 

10 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires the Exchange to give the 

Commission written notice of the Exchange’s 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 satisfied this requirement. 

11For purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

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

components have a minimum original 

principal amount outstanding of $100 

million or more. 

The Exchange represents that: (1) 

Except for Commentary .02(a)(2) to 

NYSE Arca Equities Rule 5.2(j)(3), the 

Shares of the Fund currently satisfy all 

of the generic listing standards under 

NYSE Arca Equities Rule 5.2(j)(3); (2) 

the continued listing standards under 

NYSE Arca Equities Rules 5.2(j)(3) and 

5.5(g)(2) applicable to ICUs shall apply 

to the Shares; and (3) the Trust is 

required to comply with Rule 10A–3 

under the Exchange Act 6 for the initial 

and continued listing of the Shares. In 

addition, the Exchange represents that 

the Shares will comply with all other 

requirements applicable to ICUs 

including, but not limited to, 

requirements relating to the 

dissemination of key information such 

as the value of the Underlying Index 

and Intraday Indicative Value, rules 

governing the trading of equity 

securities, trading hours, trading halts, 

surveillance, information barriers and 

Information Bulletin to ETP Holders, as 

set forth in Exchange rules applicable to 

ICUs and prior Commission orders 

approving the generic listing rules 

applicable to the listing and trading of 

ICUs.7

Detailed descriptions of the Fund, the 

Underlying Index, procedures for 

creating and redeeming Shares, 

transaction fees and expenses, 

dividends, distributions, taxes, risks, 

and reports to be distributed to 

beneficial owners of the Shares can be 

found in the Registration Statement or 

on the Web site for the Fund (http:// 

www.ishares.com), as applicable. 

2. Statutory Basis 

The basis under the Exchange Act for 

this proposed rule change is the 

requirement under Section 6(b)(5) 8 that 

an exchange have rules that are 

designed to prevent fraudulent and 

manipulative acts and practices, to 

promote just and equitable principles of 

trade, to remove impediments to, and 

perfect the mechanism of a free and 

open market and, in general, to protect 

investors and the public interest. The 

Exchange believes that the proposed 

rule change will facilitate the listing and 

trading of additional types of exchangetraded products 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 NYSE Arca 

Equities Rule 5.2(j)(3) and Commentary 

.02 thereto and continued listing criteria 

in NYSE Arca Equities Rule 5.5(g)(2) 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 

Because the proposed rule change 

does not significantly affect the 

protection of investors or the public 

interest, does not impose any significant 

burden on competition, and, by its 

terms, does not become operative for 30 

days from the date on which it was 

filed, or such shorter time as the 

Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 9 and Rule 19b– 

4(f)(6) thereunder.10

The Exchange has requested that the 

Commission waive the 30-day operative 

delay. The Exchange states that the 

proposed rule change does not 

significantly affect the protection of 

investors or the public interest and does 

not impose any significant burden on 

competition. In addition, the Exchange 

believes that it has developed adequate 

trading rules, procedures, surveillance 

programs, and listing standards for the 

continued listing and trading of the 

Shares. 

The Commission believes that waiver 

of the operative delay is consistent with 

the protection of investors and the 

public interest. The Commission notes 

that the Underlying Index for the Fund 

fails to meet the requirements set forth 

in Commentary .02(a)(2) to NYSE Arca 

Equities Rule 5.2(j)(3) by only a small 

amount (4.15%) and that the Exchange 

represents that the Shares of the Fund 

currently satisfy all of the other generic 

listing standards under NYSE Arca 

Equities Rule 5.2(j)(3) and all other 

requirements applicable to ICUs, as set 

forth in Exchange rules and prior 

Commission orders approving the 

generic listing rules applicable to the 

listing and trading of ICUs. The 

Commission also notes that there are 

approximately 1,779 issues in the 

Underlying Index as of October 1, 2010. 

The Commission believes that the 

listing and trading of the Shares do not 

present any novel or significant issues 

or impose any significant burden on 

competition, and that waiving the 30- 

day operative delay would benefit the 

market and investors by providing 

market participants with additional 

investing choices. For these reasons, the 

Commission designates the proposal 

operative upon filing.11

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission summarily may 

temporarily suspend 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–NYSEArca–2010–94 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–1090. 

All submissions should refer to File 

Number SR–NYSEArca-2010–94. This 

file number should be included on the 

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Federal Register / Vol. 75, No. 209 / Friday, October 29, 2010 / Notices 66817 

12 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 34– 

62758 (August 23, 2010), 75 FR 52792 (August 27, 

2010) (SR–CBOE–2010–075). 

4See Securities Exchange Act Release No. 34– 

62878 (September 9, 2010), 75 FR 56627 (September 

16, 2010) (SR–CBOE–2010–079). 

5See Securities Exchange Act Release No. 34– 

63000 (September 28, 2010), 75 FR 61549 (October 

5, 2010) (SR–CBOE–2010–089). 

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

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 Web site viewing and 

printing 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–2010–94 and should be 

submitted on or before November 19, 

2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–27368 Filed 10–28–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63160; File No. SR–CBOE– 

2010–093] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Modify the Fee 

Schedule for the CBOE Stock 

Exchange 

October 22, 2010. 

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

Securities Exchange Act of 1934 (the 

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

notice is hereby given that on October 

15, 2010, the Chicago Board Options 

Exchange, Incorporated (the ‘‘Exchange’’ 

or ‘‘CBOE’’) filed with the Securities and 

Exchange Commission (the 

‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III 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 

CBOE proposes to amend the Fee 

Schedule of the CBOE Stock Exchange 

(‘‘CBSX’’) to modify certain transaction 

fees. The text of the proposed rule 

change is available on the Exchange’s 

Web site (http://www.cboe.org/legal), 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 

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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

On August 23, 2010, the Commission 

published an immediately effective rule 

filing to modify the transaction fees for 

24 securities traded on CBSX (the 

following symbols: BAC, C, DXD, EMC, 

EWJ, F, FAX, FAZ, GE, INTC, MOT, 

MSFT, MU, NOK, Q, QID, S, SIRI, SKF, 

T, TWM, UNG, UWM, XLF).3 On 

September 9, 2010, the Commission 

published an immediately effective rule 

filing to modify the transaction fees for 

51 more securities traded on CBSX (the 

following symbols: AA, AMAT, AMD, 

BGZ, BP, BSX, CMCSA, COCO, CSCO, 

CX, DELL, DUK, EBAY, EEM, EWT, 

FAS, FLEX, HBAN, IYR, MDT, MGM, 

IYR, MDT, MGM, NLY, NVDA, NWSA, 

ORCL, PFE, QCOM, QQQQ, SBUX, SH, 

SLV, SMH, SSO, SYMC, TBT, TSM, 

TXN, UCO, USO, VALE, VWO, WFC, 

XHB, XLB, XLK, XLP, XLU, XLV, XLY, 

XRX, YHOO).4 On September 28, 2010, 

the Commission published an 

immediately effective rule filing to 

modify the transaction fees for 51 more 

securities traded on CBSX (the 

following symbols: ARNA, ATML, BKC, 

BRCD, CIM, DOW, DRYS, EFA, EWZ, 

FITB, FXI, GBG, GDX, GLD, GLW, HPQ, 

IDIX, IWM, JPM, KEY, LVLT, LVS, MFE, 

MO, MRVL, ONNN, PBR, PCBC, QLD, 

RF, RFMD, RIMM, RRI, RSCR, SDS, 

SNDK, SPLS, SPY, TEVA, TLT, TNA, 

TZA, UYG, VXX, VZ, X, XLE, XLI, 

XOM, XRT).5

CBSX now proposes to modify its 

transaction fees so that all securities are 

subject to the Maker and Taker fees and 

rebates to which the aforementioned 

securities became subject. The Taker 

rebate shall be $0.0014 per share for 

transactions in all securities traded on 

CBSX that are priced $1 or greater. The 

Maker fee shall be $0.0018 per share for 

transactions in all securities traded on 

CBSX that are priced $1 or greater. 

Additionally, CBSX proposes to 

modify the Maker and Taker fees and 

rebates for transactions in securities 

priced less than $1. The Taker fee for 

such transactions shall be 0.05% of the 

dollar value of the transaction. The 

Maker rebate for such transaction shall 

be 0.01% of the dollar value of the 

transaction. 

Consistent with the new fees set forth 

above, CBSX also proposes to amend the 

fee and rebate for NBBO Step-Up 

Trades. For stocks priced $1 and over, 

the order that is flashed will receive a 

$0.0014 per share rebate and the 

responder will be charged $0.0018 per 

share. For stocks priced under $1, the 

maker/taker fees will correspond to 

those in place for non-flashed 

executions (i.e., the Taker fee for such 

transactions shall be 0.05% of the dollar 

value of the transaction, and the Maker 

rebate for such transaction shall be 

0.01% of the dollar value of the 

transaction). 

The fee changes will become effective 

on October 18, 2010. 

2. Statutory Basis 

The proposed rule change is 

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

in general, and furthers the objectives of 

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