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Federal Register / Vol. 72, No.

211 / Thursday, November 1, 2007 / Notices 61927

For the Commission, by the Division of limited exception, subject to certain securities or ADRs, subject to certain
Market Regulation, pursuant to delegated proposed conditions, to one of the limitations. The Exchange proposes to
authority.15 initial listing standards related to the amend Rule 5.2(j)(6)(B)(I) to include
Florence E. Harmon, eligibility of component securities Closed-End Fund Securities and ETF
Deputy Secretary. comprising the index underlying Equity Securities that are NMS stocks listed on
[FR Doc. E7–21497 Filed 10–31–07; 8:45 am] Index-Linked Securities. The text of the national securities exchanges as
BILLING CODE 8011–01–P proposed rule change is available at the components, in whole or in part, in any
Exchange, the Commission’s Public index underlying an issuance of Equity
Reference Room, and http:// Index-Linked Securities. The Exchange
SECURITIES AND EXCHANGE www.nyse.com. believes that trading in exchange-listed
COMMISSION Closed-End Fund Securities and ETF
II. Self-Regulatory Organization’s
Statement of the Purpose of, and Securities is subject to the same level of
[Release No. 34–56696; File No. SR–
NYSEArca–2007–110] Statutory Basis for, the Proposed Rule regulation as exchange-listed equity
Change securities. In addition, Closed-End Fund
Self-Regulatory Organizations; NYSE Securities and ETF Securities trade on
In its filing with the Commission, the the same exchange platforms as equity
Arca, Inc.; Notice of Filing of Proposed
Exchange included statements securities registered under the Act and
Rule Change Relating to Certain
concerning the purpose of, and basis for, are subject to the same exchange trading
Modifications to the Initial Listing and
the proposed rule change and discussed rules as equity securities. As such, the
Trading Standards for Equity Index-
any comments it received on the Exchange believes that it is appropriate
Linked Securities
proposed rule change. The text of these to permit their inclusion as components
October 24, 2007. statements may be examined at the of indexes underlying Equity Index-
Pursuant to Section 19(b)(1) of the places specified in Item IV below. The Linked Securities.
Securities Exchange Act of 1934 Exchange has prepared summaries, set The Exchange also proposes to amend
(‘‘Act’’)1 and Rule 19b–4 thereunder,2 forth in Sections A, B, and C below, of NYSE Arca Equities Rule
notice is hereby given that on October the most significant aspects of such 5.2(j)(6)(B)(I)(1)(b)(v) to incorporate a
18, 2007, NYSE Arca, Inc. (‘‘NYSE statements. limited exception to the requirement
Arca’’ or ‘‘Exchange’’), through its A. Self-Regulatory Organization’s that 90% of the index’s numerical value
wholly owned subsidiary, NYSE Arca Statement of the Purpose of, and and at least 80% of the total number of
Equities, Inc. (‘‘NYSE Arca Equities’’), Statutory Basis for, the Proposed Rule component securities underlying an
filed with the Securities and Exchange Change Equity Reference Asset must meet the
Commission (‘‘Commission’’) the then current criteria for standardized
proposed rule change as described in 1. Purpose
options trading set forth in NYSE Arca
Items I, II, and III below, which Items The Exchange proposes to amend Rule 5.3. The Exchange proposes that an
have been substantially prepared by the NYSE Arca Equities Rule 5.2(j)(6)(B)(I) underlying index would not be subject
Exchange. The Commission is to permit the listing and trading of to such requirement if (1) no underlying
publishing this notice to solicit Equity Index-Linked Securities where component security represents more
comments on the proposed rule change the underlying index consists in whole than 10% of the dollar weight of such
from interested persons. or in part of Closed-End Fund Securities index and (ii) such index has a
or ETF Securities, which, in each case, minimum of 20 component securities.
I. Self-Regulatory Organization’s are registered under the 1940 Act and
Statement of the Terms of Substance of All of the options exchanges apply the
are listed on national securities same criteria to securities underlying
the Proposed Rule Change exchange. NYSE Arca Equities Rule exchange-traded options.6 These criteria
The Exchange proposes to amend 5.2(j)(6)(B)(I) currently permits the relate primarily to the distribution and
NYSE Arca Equities Rule 5.2(j)(6)(B)(I) Exchange to list and trade, pursuant to trading volume of the securities
to permit the listing and trading of Rule 19b–4(e) under the Act,4 Equity underlying an option7 and, as such, the
Equity Index-Linked Securities 3 where Index-Linked Securities if, among other Exchange believes that such criteria are
the underlying index consists, in whole requirements, all component securities duplicative of the minimum market
or in part, of (1) securities of closed-end included in the underlying index are capitalization and trading volume
management investment companies either: (1) Securities (other than foreign requirements for securities underlying
(‘‘Closed-End Fund Securities’’) or (2) country securities and American Equity Index-Linked Securities set forth
investment company units (‘‘ETF Depository Receipts (‘‘ADRs’’)) that are in NYSE Arca Equities Rule
Securities’’), which, in each case, are (a) issued by a reporting company under 5.2(j)(6)(B)(I)(1)(b)(i) and (ii),
registered under the Investment the Act that is listed on a national respectively. The Exchange notes that
Company Act of 1940 (the ‘‘1940 Act’’) securities exchange and (b) an ‘‘NMS the current requirement of NYSE Arca
and listed on a national securities stock,’’ as defined in Rule 600 of
exchange. In addition, the Exchange Regulation NMS;5 or (2) foreign country 6 See, e.g., Rule 1009 of the Philadelphia Stock

proposes to amend NYSE Arca Equities Exchange, Inc.; Rule 5.3 of the Chicago Board
Rule 5.2(j)(6)(B)(I) to provide for a 4 See 17 CFR 240.19b–4(e). Rule 19b–4(e) Options Exchange, Incorporated; Rule 5.3 of NYSE
provides that the listing and trading of a new Arca; and Rule 502 of the International Securities
derivative securities product by a self-regulatory Exchange, LLC.
15 17 CFR 200.30–3(a)(12). organization (‘‘SRO’’) shall not be deemed a 7 The rules generally require a minimum of
1 15 U.S.C. 78s(b)(1). proposed rule change, pursuant to paragraph (c)(1) 7,000,000 publicly-held shares, 2,000 holders, a
2 17 CFR 240.19b–4. of Rule 19b–4, if the Commission has approved, trading volume of at least 2,400,000 shares in the
mstockstill on PROD1PC66 with NOTICES

3 NYSE Arca Equities Rule 5.2(j)(6) defines Equity pursuant to Section 19(b) of the Act (15 U.S.C. preceding 12 months, and a market price per share
Index-Linked Securities as securities that provide 78s(b)), the SRO’s trading rules, procedures, and of the underlying security of at least $3.00 per share
for the payment at maturity of a cash amount based listing standards for the product class that would for securities that are ‘‘covered securities,’’ as
on the performance of an underlying index or include the new derivative securities product, and defined in Section 18(b)(1) of the Securities Act of
indexes of equity securities, also referred to as the the SRO has a surveillance program for such 1933 (15 U.S.C. 77r(b)(1)), and a market price per
‘‘Equity Reference Asset.’’ See NYSE Arca Equities product class. share of the underlying security of at least $7.50 for
Rule 5.2(j)(6). 5 See 17 CFR 242.600(b)(47). securities that are not ‘‘covered securities.’’

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61928 Federal Register / Vol. 72, No. 211 / Thursday, November 1, 2007 / Notices

Equities Rule 5.2(j)(6)(B)(I)(1)(b)(ii) that system, and, in general, to protect post all comments on the Commission’s
relates to minimum trading volume for investors and the public interest. Internet Web site (http://www.sec.gov/
each component security is more rules/sro.shtml). Copies of the
B. Self-Regulatory Organization’s
stringent than the trading volume submission, all subsequent
Statement on Burden on Competition
requirement related to options trading.8 amendments, all written statements
Notwithstanding the foregoing, while a The Exchange believes the proposed with respect to the proposed rule
significant number of listed equity rule change will impose no burden on change that are filed with the
securities meet the minimum market competition that is not necessary or Commission, and all written
capitalization and trading volume appropriate in furtherance of the communications relating to the
requirements for components of equity purposes of the Act. proposed rule change between the
indexes under NYSE Arca Equities Rule C. Self-Regulatory Organization’s Commission and any person, other than
5.2(j)(6), the Exchange represents that Statement on Comments on the those that may be withheld from the
many do not meet the current criteria Proposed Rule Change Received From public in accordance with the
for standardized options trading. The Members, Participants or Others provisions of 5 U.S.C. 552, will be
Exchange believes that the explicit available for inspection and copying in
market capitalization and trading The Exchange states that no written the Commission’s Public Reference
volume requirements of NYSE Arca comments were solicited or received Room, 100 F Street, NE., Washington,
Equities Rule 5.2(j)(6)(B)(I)(1)(b)(i) and with respect to the proposed rule DC 20549, on official business days
(ii), respectively, are sufficient to ensure change. between the hours of 10 a.m. and 3 p.m.
that any component security comprising III. Date of Effectiveness of the Copies of the filing also will be available
an Equity Reference Asset underlying a Proposed Rule Change and Timing for for inspection and copying at the
series of Equity Index-Linked Securities Commission Action principal office of the Exchange. All
will have an adequate liquid trading comments received will be posted
market. In addition, the Exchange Within 35 days of the date of without change; the Commission does
believes that, by requiring that both publication of this notice in the Federal not edit personal identifying
proposed conditions to NYSE Arca Register or within such longer period (i) information from submissions. You
Equities Rule 5.2(j)(6)(B)(I)(1)(b)(v) (i.e., as the Commission may designate up to should submit only information that
enhancing concentration limits for 90 days of such date if it finds such you wish to make available publicly. All
component securities and increasing the longer period to be appropriate and submissions should refer to File
minimum number of component publishes its reasons for so finding or Number SR–NYSEArca–2007–110 and
securities) be met in order to avail of the (ii) as to which NYSE Arca consents, the should be submitted on or before
proposed exemption to such rule, the Commission will: November 23, 2007.
proposal would significantly reduce the A. By order approve such proposed
rule change, or For the Commission, by the Division of
possibility of manipulation of the index. Market Regulation, pursuant to delegated
Based on the foregoing, the Exchange B. Institute proceedings to determine
authority.11
believes that the protection of requiring whether the proposed rule change
should be disapproved. Nancy M. Morris,
such securities to be qualified for Secretary.
options trading is unnecessary. IV. Solicitation of Comments [FR Doc. E7–21454 Filed 10–31–07; 8:45 am]
2. Statutory Basis Interested persons are invited to BILLING CODE 8011–01–P

The Exchange believes that the submit written data, views, and
proposed rule change is consistent with arguments concerning the foregoing,
Section 6(b) of the Act,9 in general, and including whether the proposed rule DEPARTMENT OF STATE
furthers the objectives of Section 6(b)(5) change is consistent with the Act.
[Public Notice 5980]
of the Act,10 in particular, in that it is Comments may be submitted by any of
designed to promote just and equitable the following methods: Bureau of Educational and Cultural
principles of trade, to foster cooperation Electronic Comments Affairs (ECA) Request for Grant
and coordination with persons engaged Proposals: Algeria Youth Leadership
• Use the Commission’s Internet
in regulating, clearing, settling, Program
comment form (http://www.sec.gov/
processing information with respect to,
rules/sro.shtml); or Announcement Type: New Grant.
and facilitating transactions in • Send an e-mail to rule- Funding Opportunity Number: ECA/
securities, to remove impediments to comments@sec.gov. Please include File PE/C/PY–08–12.
and perfect the mechanism of a free and Number SR–NYSEArca–2007–110 on Catalog of Federal Domestic
open market and a national market the subject line. Assistance Number: 00.000.
Key Dates:
8 NYSE Arca Equities Rule 5.2(j)(6)(B)(I)(1)(b)(ii) Paper Comments Application Deadline: January 3,
requires that each component security must have
trading volume in each of the last six months or not
• Send paper comments in triplicate 2008.
less than 1,000,000 shares per month, except that to Nancy M. Morris, Secretary, Executive Summary: The Office of
for each of the lowest dollar weighted component Securities and Exchange Commission, Citizen Exchanges, Youth Programs
securities in the index that, in the aggregate, 100 F Street, NE., Washington, DC Division, of the Bureau of Educational
account for no more than 10% of the dollar weight
of the index, the trading volume shall be at least
20549–1090. and Cultural Affairs announces an open
500,000 shares per month in each of the last six All submissions should refer to File competition for the Algeria Youth
mstockstill on PROD1PC66 with NOTICES

months. In contrast, the options criteria for Number SR–NYSEArca–2007–110. This Leadership Program. Public and private
underlying securities generally require a minimum file number should be included on the non-profit organizations meeting the
trading volume (in all markets in which the
underlying security is traded) of 2,400,000 shares in
subject line if e-mail is used. To help the provisions described in Internal
the preceding twelve months, as stated above. Commission process and review your Revenue Code section 26 U.S.C.
9 15 U.S.C. 78f(b). comments more efficiently, please use
10 15 U.S.C. 78f(b)(5). only one method. The Commission will 11 17 CFR 200.30–3(a)(12).

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