Document ID: SEC-2008-1300-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE Arca, Inc.
Posted Date: 2008-09-24T04:00Z

[Federal Register: September 24, 2008 (Volume 73, Number 186)]
[Notices]               
[Page 55194-55197]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr24se08-156]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-58564; File No. SR-NYSEArca-2008-86]

 
Self-Regulatory Organizations; NYSE Arca, Inc.; Order Granting 
Accelerated Approval of Proposed Rule Change To List and Trade the 
WisdomTree Dreyfus Emerging Markets Fund

September 17, 2008.

I. Introduction

    On August 11, 2008, NYSE Arca, Inc. (``Exchange'' or ``NYSE 
Arca''), through its wholly owned subsidiary, NYSE Arca Equities, Inc. 
(``NYSE Arca Equities''), filed with the Securities and Exchange 
Commission (``Commission''), 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 list and trade the WisdomTree 
Dreyfus Emerging Markets Fund (``Fund''). The proposed rule change was 
published for comment in the Federal Register on August 26, 2008.\3\ 
The Commission received no comment letters on the proposal. This order 
approves the proposed rule change on an accelerated basis.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 58396 (August 20, 
2008), 73 FR 50385 (``Notice'').
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II. Description of the Proposed Rule Change

    The Exchange proposes to list and trade the shares (``Shares'') of 
the Fund pursuant to NYSE Arca Equities Rule 8.600, which governs the 
listing and trading of Managed Fund Shares on the Exchange.\4\ The Fund 
will be an actively managed exchange traded fund. The Shares will be 
offered by the WisdomTree Trust (``Trust''), which was established as a 
Delaware statutory trust on December 15, 2005. The Trust is registered 
with the Commission as an investment company.\5\
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    \4\ Managed Fund Shares are securities that represent an 
interest in a registered investment company organized as an open-end 
management investment company or similar entity that invests in a 
portfolio of securities selected by such investment company's 
investment adviser consistent with such investment company's 
investment objectives and policies. See NYSE Arca Equities Rule 
8.600(c)(1); Securities Exchange Act Release No. 57619 (April 4, 
2008), 73 FR 19544 (April 10, 2008) (SR-NYSEArca-2008-25) 
(approving, among other things, rules permitting the listing and 
trading of Managed Fund Shares).
    \5\ See Post-Effective Amendment No. 14 to Registration 
Statement on Form N-1A for the Trust (File Nos. 333-132380 and 811-
21864) (``Registration Statement''). The Exchange states that the 
descriptions of the Fund and the Shares contained in the Notice are 
based on information in the Registration Statement.
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A. Description of the Shares and the Fund

    WisdomTree Asset Management, Inc. (``WisdomTree Asset Management'') 
is the investment adviser to the Fund.\6\ The Exchange represents that 
WisdomTree Asset Management is not affiliated with any broker-dealer. 
The Bank of New York is the administrator, custodian, and transfer 
agent for the Fund. ALPS Distributors, Inc. serves as the distributor 
for the Fund.\7\
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    \6\ WisdomTree Investments, Inc. is the parent company of 
WisdomTree Asset Management.
    \7\ The Commission has issued an order granting certain 
exemptive relief to the Trust under the Investment Company Act of 
1940 (15 U.S.C. 80a-1) (``1940 Act''). See Investment Company Act 
Release No. 28147 (February 6, 2008), 73 FR 7776 (February 11, 2008) 
(File No. 812-13470). In compliance with Commentary .05 to NYSE Arca 
Equities Rule 8.600, which applies to Managed Fund Shares based on 
an international or global portfolio, the Exchange states that the 
Trust's application for exemptive relief under the 1940 Act provides 
that the Fund will comply with federal securities laws in accepting 
securities for deposits and satisfying redemptions with redemption 
securities, including that the securities accepted for deposits and 
the securities used to satisfy redemption requests are sold in 
transactions that would be exempt from registration under the 
Securities Act of 1933 (15 U.S.C. 77a).
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    The Fund seeks to earn current income reflective of money market 
rates in emerging market currencies available to foreign investors, as 
well as provide exposure to changes in the value of emerging market 
currencies relative to the U.S. dollar. The Exchange notes that because 
the Fund's investment objective was adopted as a non-fundamental 
investment policy, the Fund's investment objective may be changed 
without a vote of shareholders.
    The Fund seeks to achieve its investment objective by investing in 
short-term securities and instruments designed to provide exposure to 
the currencies and money market rates of a specified set of emerging 
market countries. The set of countries is selected and reconstituted on 
an annual basis with similar allocations to each country being 
established (in U.S. dollar terms) at the reconstitution date and 
consequently reset each quarter. Although the Fund is actively managed, 
the Exchange states that the Fund would strive to adhere to these 
general parameters in both currency selection and approximate 
allocation, unless it is believed to be to the detriment of the Fund.
    A basket of from five to twelve currencies is selected at least 
annually from a pool of eligible currencies to provide a representative 
and diversified proxy for developing market currencies relative to the 
U.S. dollar. Countries and their capital markets are first classified 
as frontier, emerging, developing, and developed markets based on a 
number of quantitative and qualitative factors to determine 
eligibility. Only the currencies of countries and capital markets 
classified as developing or emerging markets will be deemed eligible. 
The selection of the constituent currencies is then driven by the 
liquidity and tradability of the individual currencies, a country's 
economic and capital market development, and optimized regional and 
economic diversification. The Fund attempts to invest in instruments 
that provide exposure to the most liquid currencies in the geographical 
regions in which the Fund invests. The Fund will seek to provide an 
equally-weighted exposure to these currencies. The Fund will be 
rebalanced on a quarterly basis to maintain this equal weighting. The 
basket will be reconstituted each year following a similar 
classification and selection process. Significant events, such as the 
reclassification of a country's currency from developing to developed, 
may cause the Fund to reconstitute its portfolio more frequently than 
annually. At launch, the Fund initially will select a subset of the 
following markets: Brazil, Chile, China, the Czech Republic, Hungary, 
India, Malaysia, Mexico, Poland, Russia, South

[[Page 55195]]

Africa, South Korea, Taiwan, Turkey, and Thailand.\8\
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    \8\ Data for the currencies of these countries is included in 
the Bank for International Settlements Triennial Central Bank 
Survey, December 2007 (``BIS Survey''). The Fund will invest in 
instruments that provide exposure to currencies selected from the 
top 42 currencies in the chart included in the BIS Survey (Currency 
distribution of foreign exchange turnover), reflecting the 
percentage share of average daily turnover for the applicable month 
and year.
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    The Exchange adds that, in addition to using the BIS Survey to 
assess liquidity, the Fund's portfolio managers also will use 
information about transaction volume, bid-ask spreads, and average 
transaction size in each currency and in contracts and derivatives on 
such currencies to assess liquidity, obtaining this information through 
market observation, subscription services, and from publicly available 
sources.
    The Exchange notes that, because the market for money market 
instruments in these countries generally is less liquid and accessible 
to foreign investors than corresponding markets in more developed 
economies, the Fund intends to achieve exposure to the applicable non-
U.S. market(s) by investing primarily in short-term U.S. money market 
securities and in forward currency contracts and swaps, the combination 
of which is designed to create a position economically similar to a 
money market instrument denominated in a non-U.S. currency.\9\
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    \9\ The Fund may pursue its objectives through direct 
investments in money market instruments issued by entities in the 
applicable non-U.S. country and denominated in the applicable non-
U.S. currency when WisdomTree Asset Management believes it is in the 
best interest of the Fund to do so. The decision to secure exposure 
directly or indirectly will be a function of, among other things, 
market accessibility, credit exposure, and tax ramifications for 
foreign investors. If the Fund pursues direct investment, eligible 
investments will include short-term securities issued by the 
applicable foreign government and its agencies or instrumentalities, 
bank debt obligations and time deposits, bankers' acceptances, 
commercial paper, short-term corporate debt obligations, mortgage-
backed securities, and asset-backed securities.
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    The Fund generally will maintain a weighted average portfolio 
maturity of 90 days or less, will not purchase any money market 
instrument with a remaining maturity of more than 397 calendar days, 
and will not invest in non-U.S. equity securities. The Exchange notes 
that the Fund will issue and redeem Shares on a continuous basis at net 
asset value (``NAV'') \10\ only in large blocks of shares, typically 
50,000 shares or more (``Creation Units''), in transactions with 
authorized participants. Creation Units of the Fund are usually issued 
in exchange for cash, and redemptions are effected usually in exchange 
for a basket of U.S. money market instruments and/or a designated 
amount of cash. Once created, Shares of the Fund trade on the secondary 
market in amounts less than a Creation Unit.
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    \10\ The NAV of the Fund's Shares generally is calculated once 
daily Monday through Friday as of the close of regular trading on 
the New York Stock Exchange LLC, generally 4 p.m. Eastern time 
(``ET''). The NAV per share is calculated by dividing the Fund's net 
assets by the number of Fund Shares outstanding. The Exchange states 
that additional information regarding the valuation of Fund 
investments in calculating the Fund's NAV can be found in the 
Registration Statement.
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    The Exchange states that more information regarding the Shares and 
the Fund, including investment strategies, risks, creation and 
redemption procedures, fees, portfolio holdings disclosure policies, 
distributions, and taxes, can be found in the Registration Statement.

B. Availability of Information

    The Fund's Web site (www.wisdomtree.com), which will be publicly 
available prior to the public offering of the Shares, will include a 
downloadable form of the prospectus for the Fund. The Web site will 
include additional quantitative information for the Fund, updated on a 
daily basis, including: (1) The prior business day's reported NAV, mid-
point of the bid/ask spread at the time of calculation of such NAV (the 
``Bid/Ask Price''),\11\ and a calculation of the premium and discount 
of the Bid/Ask Price against the NAV; and (2) data in chart format 
displaying the frequency distribution of discounts and premiums of the 
daily Bid/Ask Price against the NAV, within appropriate ranges, for 
each of the four previous calendar quarters. On each business day, 
before commencement of trading in the Core Trading Session \12\ on the 
Exchange, the Trust will disclose on its Web site the identities and 
quantities of the portfolio of securities and other assets (``Disclosed 
Portfolio'') \13\ held by the Fund that will form the basis for the 
Fund's calculation of NAV at the end of the business day.\14\
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    \11\ The Bid/Ask Price of the Fund is determined using the 
midpoint of the highest bid and the lowest offer on the Exchange as 
of the time of calculation of the Fund's NAV. The records relating 
to Bid/Ask Prices will be retained by the Fund and its service 
providers.
    \12\ See NYSE Arca Equities Rule 7.34. The Core Trading Session 
is from 9:30 a.m. to 4 p.m. ET.
    \13\ See NYSE Arca Equities Rule 8.600(c)(2) (defining Disclosed 
Portfolio as the identities and quantities of the securities and 
other assets held by the investment company that will form the basis 
for the investment company's calculation of NAV at the end of the 
business day).
    \14\ Under accounting procedures followed by the Fund, trades 
made on the prior business day (``T'') will be booked and reflected 
in NAV on the current business day (``T+1''). Notwithstanding the 
foregoing, portfolio trades that are executed prior to the opening 
of the Exchange on any business day may be booked and reflected in 
NAV on such business day. Accordingly, the Fund will be able to 
disclose at the beginning of the business day the portfolio that 
will form the basis for the NAV calculation at the end of the 
business day.
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    In addition, an estimated value, defined in NYSE Arca Equities Rule 
8.600(c)(3) as the ``Portfolio Indicative Value,'' which reflects an 
estimated intraday value of the Fund's portfolio, will be disseminated. 
The Portfolio Indicative Value will be based upon the current value for 
the components of the Disclosed Portfolio and will be updated and 
disseminated by the Exchange at least every 15 seconds during the Core 
Trading Session through the facilities of the Consolidated Tape 
Association. The Exchange states that the dissemination of the 
Portfolio Indicative Value, together with the Disclosed Portfolio, will 
allow investors to determine the value of the underlying portfolio of 
the Fund on a daily basis and to provide a close estimate of that value 
throughout the trading day.
    The Exchange further states that information regarding market price 
and volume of the Shares is and will be continually available on a 
real-time basis throughout the day on brokers' computer screens and 
other electronic services. The previous day's closing price and trading 
volume information will be published daily in the financial section of 
newspapers. Quotation and last-sale information regarding the Shares 
will be available via the Consolidated Tape Association high-speed 
line.

C. Initial and Continued Listing

    The Shares will be subject to NYSE Arca Equities Rule 8.600(d), 
which sets forth the initial and continued listing criteria applicable 
to Managed Fund Shares. A minimum of 100,000 Shares will be required to 
be outstanding at the commencement of trading. The Exchange states that 
this minimum number of Shares required to be outstanding is comparable 
to requirements that have been applied to previously listed series of 
exchange-traded funds. The Exchange believes that the proposed minimum 
number of Shares outstanding at the start of trading will be sufficient 
to provide market liquidity. In addition, the Exchange states that it 
will obtain a representation from the Trust prior to the listing of the 
Fund Shares that the NAV per Share will be calculated daily and that 
the NAV and Disclosed Portfolio will be made available to all market

[[Page 55196]]

participants at the same time.\15\ The Exchange further represents 
that, for initial and/or continued listing, the Shares must be in 
compliance with Rule 10A-3 under the Act,\16\ as provided by NYSE Arca 
Equities Rule 5.3.
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    \15\ E-mail from Tim Malinowski, Director, NYSE Euronext, to 
Edward Cho, Special Counsel, Division of Trading and Markets, 
Commission, dated September 11, 2008. See NYSE Arca Equities Rule 
8.600(d)(1).
    \16\ See 17 CFR 240.10A-3.
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D. Trading Halts

    With respect to trading halts, the Exchange may consider all 
relevant factors in exercising its discretion to halt or suspend 
trading in the Shares of the Fund. Shares of the Fund will be halted if 
the ``circuit breaker'' parameters in NYSE Arca Equities Rule 7.12 are 
reached. 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 securities comprising the Disclosed Portfolio and/or 
the financial instruments of the Fund; or (2) whether other unusual 
conditions or circumstances detrimental to the maintenance of a fair 
and orderly market are present. Finally, trading in the Shares will be 
subject to NYSE Arca Equities Rule 8.600(d)(2)(D), which sets forth 
specific circumstances under which trading in the Shares of the Fund 
may/must be halted.

E. 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. The Shares will trade 
on the NYSE Arca Marketplace from 4 a.m. to 8 p.m. ET, in accordance 
with NYSE Arca Equities Rule 7.34 (Opening, Core, and Late Trading 
Sessions). The Exchange states that it has appropriate rules to 
facilitate transactions in the Shares during all trading sessions. The 
minimum trading increment for the Shares on the Exchange will be $0.01.

F. Surveillance

    The Exchange intends to utilize its existing surveillance 
procedures applicable to derivative products (which includes Managed 
Fund Shares) 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 surveillance focuses 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 states that 
it may obtain information via the Intermarket Surveillance Group 
(``ISG'') from other exchanges who are members of ISG.\17\ In addition, 
the Exchange also has a general policy prohibiting the distribution of 
material, non-public information by its employees.
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    \17\ For a list of the current members of ISG, see 
www.isgportal.org. The Exchange notes that not all of the components 
of the Disclosed Portfolio for the Fund may trade on exchanges that 
are members of ISG.
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G. Information Bulletin

    Prior to the commencement of trading, the Exchange will inform its 
ETP Holders in an Information Bulletin (``Bulletin'') of the special 
characteristics and risks associated with trading the Shares. 
Specifically, the Bulletin will discuss the following: (1) The 
procedures for purchases and redemptions of Shares in Creation Unit 
aggregations (and that Shares are not individually redeemable); (2) 
NYSE Arca Equities Rule 9.2(a),\18\ 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; (3) the risks involved in 
trading the Shares during the Opening and Late Trading Sessions when an 
updated Portfolio Indicative Value will not be calculated or publicly 
disseminated; (4) how information regarding the Portfolio Indicative 
Value 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 Bulletin will reference that the Fund is 
subject to various fees and expenses described in the Registration 
Statement and will discuss any exemptive, no-action, and interpretive 
relief granted by the Commission from any rules under the Act. The 
Bulletin will also disclose that the NAV for the Shares will be 
calculated after 4 p.m. ET each trading day.
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    \18\ NYSE Arca Equities Rule 9.2(a) provides that an ETP Holder, 
before recommending a transaction, must have reasonable grounds to 
believe that the recommendation is suitable for the customer based 
on any facts disclosed by the customer as to his other security 
holdings and as to his financial situation and needs. Further, the 
rule provides, with a limited exception, that prior to the execution 
of a transaction recommended to a non-institutional customer, the 
ETP Holder shall make reasonable efforts to obtain information 
concerning the customer's financial status, tax status, investment 
objectives, and any other information that the ETP Holder believes 
would be useful to make a recommendation. See Securities Exchange 
Act Release No. 54026 (June 21, 2006), 71 FR 36850 (June 28, 2006) 
(SR-PCX-2005-115).
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III. Discussion and Commission's Findings

    After careful consideration, the Commission finds that the proposed 
rule change is consistent with the requirements of the Act and the 
rules and regulations thereunder applicable to a national securities 
exchange.\19\ In particular, the Commission finds that the proposed 
rule change is consistent with the requirements of Section 6(b)(5) of 
the Act,\20\ which requires, among other things, that the Exchange's 
rules be designed to promote just and equitable principles of trade, to 
foster cooperation and coordination with persons engaged in regulating, 
clearing, settling, processing information with respect to, and 
facilitating transactions in securities, to remove impediments to and 
perfect the mechanism of a free and open market and a national market 
system, and, in general, to protect investors and the public interest. 
The Commission notes that, for the Shares to be listed and traded on 
the Exchange, such Shares must be in compliance with the initial and 
continued listing requirements under NYSE Arca Equities Rule 8.600.
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    \19\ In approving this proposed rule change, the Commission 
notes that it has considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
    \20\ 15 U.S.C. 78f(b)(5).
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    The Commission believes that the proposal to list and trade the 
Shares on the Exchange is consistent with Section 11A(a)(1)(C)(iii) of 
the Act \21\ which sets forth Congress' finding that it is in the 
public interest and appropriate for the protection of investors and the 
maintenance of fair and orderly markets to assure the availability to 
brokers, dealers, and investors of information with respect to 
quotations for and transactions in securities. Quotation and last-sale 
information for the Shares will be disseminated by means of the 
facilities of the Consolidated Tape Association. In addition, the 
Portfolio Indicative Value will be updated and disseminated at least 
every 15 seconds during the Core Trading Session on the Exchange 
through the facilities of the Consolidated Tape Association, and, on 
each business day before commencement of the Core Trading Session, the 
Trust will disseminate the Disclosed Portfolio on its Web site. The 
Commission also notes that information

[[Page 55197]]

regarding market price and volume of the Shares is and will be 
continually available on a real-time basis throughout the day through 
electronic means, and the previous day's closing price and trading 
volume information will be published daily in the financial section of 
newspapers. Additionally, the following information will be available 
on the Funds' Web site (www.wisdomtree.com), which will be publicly 
accessible at no charge: (1) The prior business day's reported NAV, the 
Bid/Ask Price, and a calculation of the premium and discount of the 
Bid/Ask Price against the NAV; and (2) data in chart format displaying 
the frequency distribution of discounts and premiums of the daily Bid/
Ask Price against the NAV, within appropriate ranges, for each of the 
four previous calendar quarters.
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    \21\ 15 U.S.C. 78k-1(a)(1)(C)(iii).
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    Furthermore, the Commission believes that the proposal to list and 
trade the Shares is reasonably designed to promote fair disclosure of 
information that may be necessary to price the Shares appropriately and 
to prevent trading when a reasonable degree of transparency cannot be 
assured. The Commission notes that the Exchange is required to obtain a 
representation from the Trust, prior to listing, that the NAV per Share 
will be calculated daily, and that the NAV and the Disclosed Portfolio 
will be made available to all market participants at the same time.\22\ 
The Exchange may consider the suspension of trading in, or removal from 
listing of, the Shares if the value of the Portfolio Indicative Value 
is no longer calculated or available or the Disclosed Portfolio is not 
made available to all market participants at the same time.\23\ In 
addition, NYSE Arca Equities Rule 8.600(d)(2)(B)(ii) requires that the 
Reporting Authority \24\ that provides the Disclosed Portfolio 
implement and maintain, or be subject to, procedures designed to 
prevent the use and dissemination of material non-public information 
regarding the actual components of the portfolio. Lastly, the 
Commission notes that the Exchange will halt trading in the Shares 
under the specific circumstances set forth in NYSE Arca Equities Rule 
8.600(d)(2)(D) and that, if WisdomTree Asset Management becomes 
affiliated with a broker-dealer, WisdomTree Asset Management must erect 
a firewall between it and such broker-dealer with respect to access to 
information concerning the composition and/or changes to the investment 
portfolio of the Funds, in accordance with Commentary .07 to NYSE Arca 
Equities Rule 8.600.
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    \22\ See supra note 15 and accompanying text.
    \23\ See NYSE Arca Equities Rule 8.600(d)(2)(C)(ii).
    \24\ See NYSE Arca Equities Rule 8.600(c)(4) (defining Reporting 
Authority).
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    Though the Exchange has stated that the Fund's investment objective 
may be changed without a vote of shareholders, an Exchange's 
obligations under Section 19(b) of the Act and Rule 19b-4 thereunder 
are independent of any requirements that may apply to the Fund's 
issuer. Thus, the Exchange must monitor changes to the Shares, 
including any change to the Fund's investment objective. The Exchange 
must assess whether any changes to the Shares would require it to 
submit a proposed rule change in accordance with Section 19(b)(1) of 
the Act and Rule 19b-4 thereunder or take any other action as 
appropriate, including halting trading of the Shares.
    The Commission further believes that the trading rules and 
procedures to which the Shares will be subject pursuant to this 
proposal are consistent with the Act. The Exchange has represented that 
the Shares are equity securities subject to Exchange's rules governing 
the trading of equity securities.
    In support of this proposal, the Exchange has made the following 
representations:
    1. The Shares will be subject to the initial and continued listing 
criteria applicable to Managed Fund Shares. In addition, for initial 
and/or continued listing, the Shares must comply with Rule 10A-3 under 
the Act,\25\ as provided by NYSE Arca Equities Rule 5.3.
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    \25\ 17 CFR 240.10A-3.
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    2. The Exchange will rely on its existing surveillance procedures 
applicable to derivative products, which will include Managed Fund 
Shares.\26\ The Exchange's surveillance procedures are adequate to 
properly monitor the trading of the Shares in all trading sessions and 
to deter and detect violations of Exchange rules and applicable federal 
securities laws.
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    \26\ The Commission notes that the Fund will not invest in non-
U.S. equity securities and believes that the Exchange's rules and 
procedures are adequate with respect to the trading of the Shares. 
The Commission, however, notes that other proposed series of Managed 
Fund Shares may require additional Exchange rules and procedures to 
govern their listing and trading on the Exchange. For example, in 
the case of a proposed series of Managed Fund Shares that are based 
on a portfolio, at least in part, of non-U.S. equity securities, 
rules relating to comprehensive surveillance sharing agreements and 
quantitative initial and continued listing standards may be 
required.
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    3. 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, 
prospectus delivery requirements, and other information, as described 
in more detail herein.
    For the foregoing reasons, the Commission believes that the 
proposal to list and trade the Shares is consistent with the Act and 
finds good cause for approving the proposed rule change. This approval 
order is based on the Exchange's representations.
    The Commission finds good cause for approving the proposed rule 
change before the 30th day after the date of publication of notice of 
filing thereof in the Federal Register. The Commission notes that the 
investment objective of the Fund is similar to those applicable to 
other Managed Fund Shares, the listing and trading of which the 
Commission has previously approved for the Exchange.\27\ The Commission 
further notes that the Fund will invest in instruments that provide 
exposure to currencies selected only from the top 42 currencies in the 
chart included in the BIS Survey (Currency distribution of foreign 
exchange turnover), reflecting the highest percentage shares of average 
daily turnover for the applicable month and year. Accelerated approval 
of the proposed rule change should provide additional choices for 
investors in, and promote additional competition in the market for, 
Managed Fund Shares. Therefore, the Commission finds good cause, 
consistent with Section 19(b)(2) of the Act,\28\ to approve the 
proposed rule change on an accelerated basis.
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    \27\ See, e.g., Securities Exchange Act Release No. 57801 (May 
8, 2008), 73 FR 27878 (May 14, 2008) (SR-NYSEArca-2008-31) 
(approving the listing and trading of 12 actively managed exchange-
traded funds of the WisdomTree Trust, including 11 international 
currency funds and one U.S. current income fund, pursuant to NYSE 
Arca Equities Rule 8.600).
    \28\ 15 U.S.C. 78s(b)(2).
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IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\29\ that the proposed rule change (SR-NYSEArca-2008-86) be, and it 
hereby is, approved on an accelerated basis.
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    \29\ Id.
    \30\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\30\
J. Lynn Taylor,
Assistant Secretary.
 [FR Doc. E8-22308 Filed 9-23-08; 8:45 am]

BILLING CODE 8010-01-P