Document ID: SEC-2008-0712-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE Arca, Inc.
Posted Date: 2008-05-15T04:00Z

[Federal Register: May 15, 2008 (Volume 73, Number 95)]
[Notices]               
[Page 28178-28180]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr15my08-96]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57805; File No. SR-NYSEArca-2008-46]

 
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
of Proposed Rule Change Relating to the Listing and Trading of Shares 
of the NETS ISEQ 20 Index Fund (Ireland)

May 8, 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 May 8, 2008, NYSE Arca, Inc. (``NYSE Arca'' or ``Exchange''), 
through its wholly owned subsidiary, NYSE Arca Equities, Inc. (``NYSE 
Arca Equities''), 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 substantially prepared by the 
Exchange. The Commission is publishing this notice to solicit comments 
on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to list and trade the shares (``Shares'') of 
the NETS ISEQ 20[supreg] Index Fund (Ireland) (``Fund'') issued by the 
NETS Trust (``Trust''). 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 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 list and trade the Shares pursuant to NYSE 
Arca

[[Page 28179]]

Equities Rule 5.2(j)(3), the Exchange's listing standards for 
Investment Company Units (``ICUs'').\3\ The Fund is an ``index fund'' 
that seeks to provide investment results that correspond generally to 
the price and yield performance, before fees and expenses, of publicly-
traded securities in the aggregate in the Irish market, as represented 
by the ISEQ 20[supreg] (``Index''). The primary market for securities 
in the Index is the Irish Stock Exchange.
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    \3\ An ICU is a security that represents an interest in a 
registered investment company that holds securities comprising, or 
otherwise based on or representing an interest in, an index or 
portfolio of securities (or holds securities in another registered 
investment company that holds securities comprising, or otherwise 
based on or representing an interest in, an index or portfolio of 
securities). See NYSE Arca Equities Rule 5.2(j)(3).
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    The Exchange submits this proposed rule change because the Index 
for the Fund does not meet all of the ``generic'' listing requirements 
of Commentary .01(a)(B) to NYSE Arca Equities Rule 5.2(j)(3) applicable 
to the listing of ICUs based on international or global indexes. The 
Index meets all such requirements except for those set forth in 
Commentary .01(a)(B)(3).\4\ The Exchange represents that: (1) Except 
for the requirement under Commentary .01(a)(B)(3) to NYSE Arca Equities 
Rule 5.2(j)(3) relating to the five most heavily weighted component 
stocks, 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 will apply to the Shares; and (3) the 
Trust is required to comply with Rule 10A-3 under the Act \5\ 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 Index value and 
Intraday Indicative Value, rules governing the trading of equity 
securities, trading hours, trading halts, surveillance, and Information 
Bulletin to ETP Holders, as set forth in prior Commission orders 
approving the generic listing rules applicable to the listing and 
trading of ICUs.\6\
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    \4\ The Exchange states that the Index satisfies the first 
requirement under Commentary .01(a)(B)(3) to NYSE Arca Equities Rule 
5.2(j)(3) that the most heavily weighted component stock shall not 
exceed 25% of the weight of the index or portfolio. However, the 
Index fails to meet the second requirement of Commentary 
.01(a)(B)(3) to NYSE Arca Equities Rule 5.2(j)(3) that the five most 
heavily weighted component stocks shall not exceed 60% of the weight 
of the Index. The Exchange states that, as of April 18, 2008, the 
five most heavily weighted component stocks represented 68.7% of the 
Index weight.
    \5\ See 17 CFR 240.10A-3.
    \6\ See, e.g., Securities Exchange Act Release Nos. 55621 (April 
12, 2007), 72 FR 19571 (April 18, 2007) (SR-NYSEArca-2006-86) 
(approving generic listing standards for ICUs based on international 
or global indexes); 44551 (July 12, 2001), 66 FR 37716 (July 19, 
2001) (SR-PCX-2001-14) (approving generic listing standards for ICUs 
and Portfolio Depositary Receipts); and 41983 (October 6, 1999), 64 
FR 56008 (October 15, 1999) (SR-PCX-98-29) (approving rules for the 
listing and trading of ICUs).
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    The Exchange states that detailed descriptions of the Fund, the 
Index, procedures for creating and redeeming Shares, transaction fees 
and expenses, dividends, distributions, taxes, and reports to be 
distributed to beneficial owners of the Shares can be found in the 
Trust's Registration Statement \7\ or on the Web site for the Fund 
(http://www.netsetfs.com), as applicable.
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    \7\ See Registration Statement on Form N-1A dated February 13, 
2008 (File Nos. 333-147077 and 811-22140).
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\8\ in general, and furthers the 
objectives of Section 6(b)(5) of the Act,\9\ 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 facilitate the 
listing and trading of additional types of exchange-traded products 
that will enhance competition among market participants, to the benefit 
of investors and the marketplace.
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    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(5).
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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

    The Exchange states that written comments on the proposed rule 
change were neither solicited nor received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Within 35 days of the date of publication of this notice in the 
Federal Register or within such longer period (i) as the Commission may 
designate up to 90 days of such date if it finds such longer period to 
be appropriate and publishes its reasons for so finding or (ii) as to 
which the Exchange consents, the Commission will:
    A. By order approve such proposed rule change; or
    B. Institute proceedings to determine whether the proposed rule 
change should be disapproved.

The Exchange has requested accelerated approval of this proposed rule 
change prior to the 30th day after the date of publication of the 
notice of the filing thereof. The Commission is considering granting 
accelerated approval of the proposed rule change at the end of a 15-day 
comment period.

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 rule-comments@sec.gov. Please include 
File Number SR-NYSEArca-2008-46 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-NYSEArca-2008-46. 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

[[Page 28180]]

those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for inspection and 
copying in the Commission's Public Reference Room, 100 F Street, NE., 
Washington, DC 20549, on official business days between the hours of 10 
a.m. and 3 p.m. Copies of the filing also will be available for 
inspection and copying at the principal office of the Exchange. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-NYSEArca-2008-46 and should 
be submitted on or before May 30, 2008.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E8-10803 Filed 5-14-08; 8:45 am]

BILLING CODE 8010-01-P