Self-Regulatory Organizations; New York Stock Exchange, Inc.; Notice of Filing and Order Granting Accelerated Approval to a Proposed Rule Change Relating to an Amendment to Section 703.16 of the Listed Company Manual Regarding Dissemination of Index Value and Indicative Value, 43488-43490 [E5-4000]

Download as PDF 43488 Federal Register / Vol. 70, No. 143 / Wednesday, July 27, 2005 / Notices more than 40,000,000 shares during a month. 2. Statutory Basis Nasdaq believes that the proposed rule change, as amended, is consistent with the provisions of section 15A of the Act,8 in general, and section 15A(b)(5)9 of the Act, in particular, in that the proposed rule change provides for the equitable allocation of reasonable dues, fees and other charges among members and issuers and other persons using any facility or system which the NASD operates or controls. According to Nasdaq, the proposed rule change applies to non-members that use Nasdaq’s Brut Facility. The same fee change is also being implemented for NASD members that use the Nasdaq Market Center and/or Nasdaq’s Brut Facility. Accordingly, the proposed change, as amended, promotes an equitable allocation of fees between members and non-members using Nasdaq’s order execution facilities. B. Self-Regulatory Organization’s Statement on Burden on Competition Nasdaq does not believe that the proposed rule change will result in 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 Written comments were neither solicited nor received. III. 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 (https://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–NASD–2005–072 on the subject line. Paper Comments • Send paper comments in triplicate to Jonathan G. Katz, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–9303. All submissions should refer to File Number SR–NASD–2005–072. This file 8 15 9 15 U.S.C. 78o–3. U.S.C. 78o–3(b)(5). VerDate jul<14>2003 20:48 Jul 26, 2005 Jkt 205001 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 (https://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. Copies of such filing also will be available for inspection and copying at Nasdaq’s Office of the Secretary. 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–NASD–2005–072 and should be submitted on or before August 17, 2005. IV. Commission’s Findings and Order Granting Accelerated Approval of Proposed Rule Change The Commission finds that the proposed rule change, as amended, is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a selfregulatory organization.10 Specifically, the Commission believes that the proposed rule change, as amended, is consistent with section 15A(b)(5) of the Act,11 which requires that the rules of the self-regulatory organization provide for the equitable allocation of reasonable dues, fees, and other charges among members and issuers and other persons using any facilities or system which it operates or controls. The Commission notes that this proposal, which would modify pricing for non-NASD members using the Nasdaq’s Brut facility, would permit the schedule for non-NASD members to mirror the schedule applicable to NASD members that became effective as of June 1, 2005, pursuant to SR–NASD– 2005–071. The Commission finds good cause for approving the proposed rule change, as amended, prior to the 30th day of the date of publication of the notice thereof in the Federal Register. The Commission notes that the proposed fees for non-NASD members are identical to those in SR–NASD–2005– 071, which implemented those fees for NASD members and which became effective as of June 1, 2005. The Commission notes that this change will promote consistency in Nasdaq’s fee schedule by applying the same pricing schedule with the same date of effectiveness for both NASD members and non-NASD members. Therefore, the Commission finds that there is good cause, consistent with section 19(b)(2) of the Act,12 to approve the proposed change on an accelerated basis. V. Conclusion It is therefore ordered, pursuant to section 19(b)(2) of the Act,13 that the proposed rule change (File No. SR– NASD–2005–072), as amended, is approved on an accelerated basis. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.14 Jill M. Peterson, Assistant Secretary. [FR Doc. E5–4002 Filed 7–26–05; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–52081; File No. SR–NYSE– 2005–44] Self-Regulatory Organizations; New York Stock Exchange, Inc.; Notice of Filing and Order Granting Accelerated Approval to a Proposed Rule Change Relating to an Amendment to Section 703.16 of the Listed Company Manual Regarding Dissemination of Index Value and Indicative Value July 20, 2005. 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 June 23, 2005, the New York Stock Exchange, Inc. (‘‘NYSE’’ 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 NYSE. The 12 15 Commission has considered the proposed rule’s impact on efficiency, competition and capital formation. 15 U.S.C. 78c(f). 11 15 U.S.C. 78o–3(b)(5). PO 00000 10 The Frm 00099 Fmt 4703 Sfmt 4703 U.S.C. 78s(b)(2). U.S.C. 78s(b)(2). 14 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 13 15 E:\FR\FM\27JYN1.SGM 27JYN1 Federal Register / Vol. 70, No. 143 / Wednesday, July 27, 2005 / Notices Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. In addition, the Commission is granting accelerated approval of the proposed rule change. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The NYSE proposes to amend section 703.16 (B)(3) of the Listed Company Manual (‘‘Company Manual’’) to provide that if a series of Investment Company Units (‘‘ICUs’’) is listed, or traded on the NYSE pursuant to unlisted trading privileges in reliance upon Rule 19b–4(e) under the Act,3 the current value of the underlying index must be widely disseminated by one or more major market data vendors or disseminated over the Consolidated Tape at least every 15 seconds during trading hours on the NYSE. The Exchange similarly seeks approval for the intraday ‘‘estimate’’ of a series of ICUs, sometimes known as the Intraday Indicative Value (‘‘IIV’’) or Intraday Optimized Portfolio Value (‘‘IOPV’’) to be widely disseminated by one or more major market data vendors or disseminated over the Consolidated Tape at least every 15 seconds during NYSE trading hours for ICUs, currently 9:30 a.m. to 4:15 p.m.4 In addition, the Exchange proposes to make a technical amendment to section 703.16(E) of the Company Manual to reflect that ICUs trade in increments of $.01 rather than in fractions. The text of the proposed rule change is available on the NYSE’s Web site (https://www.nyse.com), at the principal office of the NYSE, 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 NYSE included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it had received on the proposed rule change. The text of these statements may be examined at the places specified in item III below. The NYSE has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. 3 17 CFR 240.19b–4(e). conversation between Mike Cavalier, Assistant General Counsel, NYSE, and Florence Harmon, Senior Special Counsel, Division of Market Regulation, Commission, on July 12, 2005. 4 Telephone VerDate jul<14>2003 19:40 Jul 26, 2005 Jkt 205001 A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The NYSE has adopted NYSE Rule 1100 (Investment Company Units) and Section 703.16 of the Company Manual, which set forth listing standards applicable to ICUs, and trading standards pursuant to which the Exchange may either list and trade ICUs or trade such ICUs on the Exchange on an unlisted trading privileges (‘‘UTP’’) basis. In 1996, the Commission approved section 703.16 of the Company Manual, which sets forth the rules related to the listing of ICUs.5 In 2000, the Commission also approved the Exchange’s ‘‘generic’’ listing standards for listing and trading pursuant to Rule 19b–4(e) of the Act, or the trading pursuant to UTP, of ICUs under section 703.16 of the Company Manual and NYSE Rule 1100.6 Section 703.16 of the Company Manual enumerates the criteria that must be met in order to commence trading ICUs pursuant to Rule 19b–4(e) of the Act. ICUs include securities representing an interest in a registered investment company organized as a unit investment trust or an open-end management investment company (commonly referred to as ‘‘ExchangeTraded Funds’’ or ‘‘ETFs’’). Among these criteria is the requirement that the current value of the index underlying a series of ICUs be disseminated over the Consolidated Tape every 15 seconds during trading hours. Additionally, an estimated value for the ICU shares (sometimes called the IIV or IOPV) must be updated every 15 seconds on the Consolidated Tape during NYSE trading hours. The IIV (or IOPV) reflects an estimate of the value of the Fund’s shares and may be based on the required deposit of securities plus any cash amount to permit creation of new shares of the series or upon the index value.7 5 See Securities Exchange Act Release No. 36923 (March 5, 1996), 61 FR 10410 (March 13, 1996) (SR– NYSE–95–23). 6 See Securities Exchange Act Release No. 43679 (December 5, 2000), 65 FR 77949 (March 13, 2000) (SR–NYSE–00–46). 7 The IIV reflects the current value of the Deposit Securities and the Cash Balancing Amount. For Funds that utilize a representative sampling strategy, the IIV may not reflect the value of all securities included in the Underlying Indexes. In addition, the IIV does not necessarily reflect the precise composition of the current portfolio of securities held by the Funds at a particular point in time. Therefore, the IIV on a per Fund share basis disseminated during the Exchange’s trading hours should not be viewed as a real time update of the net asset value (‘‘NAV’’) of the Funds, which is calculated only once a day. Telephone conversation PO 00000 Frm 00100 Fmt 4703 Sfmt 4703 43489 Widespread dissemination of the index value and IIV relating to a particular series of ICUs is important information for the investing public to have. However, the Exchange believes it is unnecessary that such dissemination be over the Consolidated Tape (Tape A or Tape B) in order to permit listing or trading under the expedited procedures permitted by Rule 19b–4(e) of the Act. Index values and other index information, such as the IIV (as calculated by an independent third party, known as a ‘‘Value Calculator’’), are widely available to the public and market participants through major vendors of financial information and market data, such as Reuters, ILX, and Bloomberg. The NYSE, therefore, proposes to amend the generic listing standards in Section 703.16 to permit listing or trading a series of ICUs under Rule 19b– 4(e) of the Act 8 if the current index value and IIV for that series is widely disseminated by one or more major market vendors or is disseminated over the Consolidated Tape at least every 15 seconds during trading hours on the Exchange. Major market vendors would encompass those vendors that are wellknown, accepted and reputable among securities market participants. The Exchange believes that the proposed rule change will continue to assure ready, widespread access to index information by the financial community and the investing public. In addition, the NYSE proposes to make a technical amendment to Section 703.16(E) of the Company Manual to reflect that ICUs currently trade in increments of $.01 rather than in fractions. 2. Statutory Basis The Exchange believes the proposed rule change is consistent with the provisions of section 6(b) of the Act,9 in general, and furthers the objectives of section 6(b)(5) of the Act,10 in particular, in that it is designed 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. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change would impose between Mike Cavalier, Assistant General Counsel, NYSE, and Florence Harmon, Senior Special Counsel, Division of Market Regulation, Commission, on July 12, 2005. 8 17 CFR 240.19b–4(e). 9 15 U.S.C. 78f(b). 10 15 U.S.C. 78f(b)(5). E:\FR\FM\27JYN1.SGM 27JYN1 43490 Federal Register / Vol. 70, No. 143 / Wednesday, July 27, 2005 / Notices 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 has neither solicited nor received written comments on the proposed rule change. submissions should refer to File Number SR–NYSE–2005–44 and should be submitted on or before August 17, 2005. IV. Commission’s Findings and Order Granting Accelerated Approval of Proposed Rule Change After careful consideration, the Commission finds that the proposed rule change is consistent with the requirements of the Act and the rules III. Solicitation of Comments and regulations thereunder, applicable Interested persons are invited to to a national securities exchange.11 In submit written data, views, and particular, the Commission believes that arguments concerning the foregoing, the proposed rule change is consistent including whether the proposed rule with section 6(b)(5) of the Act,12 which change is consistent with the Act. requires among other things, that the Comments may be submitted by any of rules of the Exchange are designed to the following methods: promote just and equitable principles of trade, to remove impediments to and Electronic Comments perfect the mechanism of a free and • Use the Commission’s Internet open market and a national market comment form (https://www.sec.gov/ system, and, in general, to protect rules/sro.shtml); or investors and the public interest. The • Send an e-mail to ruleCommission believes that the proposed comments@sec.gov. Please include File change would continue to provide for Number SR–NYSE–2005–44 on the widespread availability of index subject line. information in connection with listing or trading ICUs under the generic Paper Comments standards in Section 703.16 of the • Send paper comments in triplicate Company Manual and will facilitate the to Jonathan G. Katz, Secretary, utilization of the generic standards, Securities and Exchange Commission, while maintaining comparable or 100 F Street, NE., Washington, DC increased public availability of index 20549–9303. information.13 All submissions should refer to File The NYSE has requested that the Number SR–NYSE–2005–44. This file Commission find good cause for number should be included on the approving the proposed rule change subject line if e-mail is used. To help the prior to the thirtieth day after Commission process and review your publication of notice thereof in the comments more efficiently, please use Federal Register. The Commission notes only one method. The Commission will that it has recently approved similar post all comments on the Commission’s proposals regarding the dissemination Internet Web site (https://www.sec.gov/ of the underlying index value for ICU’s rules/sro.shtml). Copies of the traded on Nasdaq and the American submission, all subsequent Stock Exchange LLC (‘‘Amex’’).14 The amendments, all written statements Commission believes that granting with respect to the proposed rule accelerated approval of the proposal change that are filed with the will allow the NYSE to immediately Commission, and all written implement these listing standards for communications relating to the dissemination of the underlying index proposed rule change between the value that already are in place on Commission and any person, other than Nasdaq and the Amex, along with those that may be withheld from the dissemination of the IIV through one or public in accordance with the more major market vendors. provisions of 5 U.S.C. 552, will be Accordingly, the Commission finds available for inspection and copying in good cause, pursuant to section 19(b)(2) the Commission’s Public Reference of the Act,15 for approving the proposed Section, 100 F Street, NE., Washington, DC 20549. Copies of such filing also will 11 In approving this proposal, the Commission has be available for inspection and copying considered its impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). at the principal office of the NYSE. All 12 15 U.S.C. 78f(b)(5). comments received will be posted 13 See Securities Exchange Act Release Nos. without change; the Commission does 51748 (May 26, 2005), 70 FR 32684 (June 3, 2005) not edit personal identifying (SR–NASD–2005–024); and 51868 (June 17, 2005), information from submissions. You 70 FR 36672 (June 24, 2005) (SR–Amex–2005–44). 14 Id. should submit only information that 15 15 U.S.C. 78s(b)(2). you wish to make publicly available. All VerDate jul<14>2003 19:40 Jul 26, 2005 Jkt 205001 PO 00000 Frm 00101 Fmt 4703 Sfmt 4703 rule change prior to the thirtieth day after the date of publication of notice thereof in the Federal Register. V. Conclusion It is therefore ordered, pursuant to section 19(b)(2) of the Act,16 that the proposed rule change (SR–NYSE–2005– 44) be, and hereby is, approved on an accelerated basis. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.17 Jill M. Peterson, Assistant Secretary. [FR Doc. E5–4000 Filed 7–26–05; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–52070; File No. SR–PCX– 2005–61] Self-Regulatory Organizations; The Pacific Exchange, Inc.; Notice of Filing of Proposed Rule Change, and Amendment No. 1 Thereto, Establishing a De Minimus Exception to the 80/20 Test July 20, 2005. 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 April 26, 2005, the Pacific Exchange, Inc. (‘‘Exchange’’ or ‘‘PCX’’) 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 prepared by the PCX. On June 29, 2005, the Exchange submitted Amendment No. 1 to the proposed rule change.3 The Commission is publishing this notice to solicit comments on the proposed rule change, as amended, from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to modify the ‘‘80/20 Test’’ in determining limitations on Principal Order access under the rules imposed by the Plan for the Purpose of Creating and Operating an Intermarket Option Linkage (‘‘Linkage Plan’’) 4 and related rules. 16 15 U.S.C. 78s(b)(2). CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 Amendment No.1 added clarifying language to the proposed rule text. 4 On July 28, 2000, the Commission approved a national market system plan for the purpose of creating and operating an intermarket options 17 17 E:\FR\FM\27JYN1.SGM 27JYN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 70, Number 143 (Wednesday, July 27, 2005)]
[Notices]
[Pages 43488-43490]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-4000]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-52081; File No. SR-NYSE-2005-44]


Self-Regulatory Organizations; New York Stock Exchange, Inc.; 
Notice of Filing and Order Granting Accelerated Approval to a Proposed 
Rule Change Relating to an Amendment to Section 703.16 of the Listed 
Company Manual Regarding Dissemination of Index Value and Indicative 
Value

July 20, 2005.
    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 June 23, 2005, the New York Stock Exchange, Inc. (``NYSE'' 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 NYSE. The

[[Page 43489]]

Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons. In addition, the 
Commission is granting accelerated approval of the proposed rule 
change.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The NYSE proposes to amend section 703.16 (B)(3) of the Listed 
Company Manual (``Company Manual'') to provide that if a series of 
Investment Company Units (``ICUs'') is listed, or traded on the NYSE 
pursuant to unlisted trading privileges in reliance upon Rule 19b-4(e) 
under the Act,\3\ the current value of the underlying index must be 
widely disseminated by one or more major market data vendors or 
disseminated over the Consolidated Tape at least every 15 seconds 
during trading hours on the NYSE. The Exchange similarly seeks approval 
for the intraday ``estimate'' of a series of ICUs, sometimes known as 
the Intraday Indicative Value (``IIV'') or Intraday Optimized Portfolio 
Value (``IOPV'') to be widely disseminated by one or more major market 
data vendors or disseminated over the Consolidated Tape at least every 
15 seconds during NYSE trading hours for ICUs, currently 9:30 a.m. to 
4:15 p.m.\4\ In addition, the Exchange proposes to make a technical 
amendment to section 703.16(E) of the Company Manual to reflect that 
ICUs trade in increments of $.01 rather than in fractions. The text of 
the proposed rule change is available on the NYSE's Web site (https://
www.nyse.com), at the principal office of the NYSE, and at the 
Commission's Public Reference Room.
---------------------------------------------------------------------------

    \3\ 17 CFR 240.19b-4(e).
    \4\ Telephone conversation between Mike Cavalier, Assistant 
General Counsel, NYSE, and Florence Harmon, Senior Special Counsel, 
Division of Market Regulation, Commission, on July 12, 2005.
---------------------------------------------------------------------------

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 NYSE included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it had received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
item III below. The NYSE 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 NYSE has adopted NYSE Rule 1100 (Investment Company Units) and 
Section 703.16 of the Company Manual, which set forth listing standards 
applicable to ICUs, and trading standards pursuant to which the 
Exchange may either list and trade ICUs or trade such ICUs on the 
Exchange on an unlisted trading privileges (``UTP'') basis. In 1996, 
the Commission approved section 703.16 of the Company Manual, which 
sets forth the rules related to the listing of ICUs.\5\ In 2000, the 
Commission also approved the Exchange's ``generic'' listing standards 
for listing and trading pursuant to Rule 19b-4(e) of the Act, or the 
trading pursuant to UTP, of ICUs under section 703.16 of the Company 
Manual and NYSE Rule 1100.\6\
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 36923 (March 5, 
1996), 61 FR 10410 (March 13, 1996) (SR-NYSE-95-23).
    \6\ See Securities Exchange Act Release No. 43679 (December 5, 
2000), 65 FR 77949 (March 13, 2000) (SR-NYSE-00-46).
---------------------------------------------------------------------------

    Section 703.16 of the Company Manual enumerates the criteria that 
must be met in order to commence trading ICUs pursuant to Rule 19b-4(e) 
of the Act. ICUs include securities representing an interest in a 
registered investment company organized as a unit investment trust or 
an open-end management investment company (commonly referred to as 
``Exchange-Traded Funds'' or ``ETFs''). Among these criteria is the 
requirement that the current value of the index underlying a series of 
ICUs be disseminated over the Consolidated Tape every 15 seconds during 
trading hours. Additionally, an estimated value for the ICU shares 
(sometimes called the IIV or IOPV) must be updated every 15 seconds on 
the Consolidated Tape during NYSE trading hours. The IIV (or IOPV) 
reflects an estimate of the value of the Fund's shares and may be based 
on the required deposit of securities plus any cash amount to permit 
creation of new shares of the series or upon the index value.\7\
---------------------------------------------------------------------------

    \7\ The IIV reflects the current value of the Deposit Securities 
and the Cash Balancing Amount. For Funds that utilize a 
representative sampling strategy, the IIV may not reflect the value 
of all securities included in the Underlying Indexes. In addition, 
the IIV does not necessarily reflect the precise composition of the 
current portfolio of securities held by the Funds at a particular 
point in time. Therefore, the IIV on a per Fund share basis 
disseminated during the Exchange's trading hours should not be 
viewed as a real time update of the net asset value (``NAV'') of the 
Funds, which is calculated only once a day. Telephone conversation 
between Mike Cavalier, Assistant General Counsel, NYSE, and Florence 
Harmon, Senior Special Counsel, Division of Market Regulation, 
Commission, on July 12, 2005.
---------------------------------------------------------------------------

    Widespread dissemination of the index value and IIV relating to a 
particular series of ICUs is important information for the investing 
public to have. However, the Exchange believes it is unnecessary that 
such dissemination be over the Consolidated Tape (Tape A or Tape B) in 
order to permit listing or trading under the expedited procedures 
permitted by Rule 19b-4(e) of the Act. Index values and other index 
information, such as the IIV (as calculated by an independent third 
party, known as a ``Value Calculator''), are widely available to the 
public and market participants through major vendors of financial 
information and market data, such as Reuters, ILX, and Bloomberg.
    The NYSE, therefore, proposes to amend the generic listing 
standards in Section 703.16 to permit listing or trading a series of 
ICUs under Rule 19b-4(e) of the Act \8\ if the current index value and 
IIV for that series is widely disseminated by one or more major market 
vendors or is disseminated over the Consolidated Tape at least every 15 
seconds during trading hours on the Exchange. Major market vendors 
would encompass those vendors that are well-known, accepted and 
reputable among securities market participants. The Exchange believes 
that the proposed rule change will continue to assure ready, widespread 
access to index information by the financial community and the 
investing public.
---------------------------------------------------------------------------

    \8\ 17 CFR 240.19b-4(e).
---------------------------------------------------------------------------

    In addition, the NYSE proposes to make a technical amendment to 
Section 703.16(E) of the Company Manual to reflect that ICUs currently 
trade in increments of $.01 rather than in fractions.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
the provisions of section 6(b) of the Act,\9\ in general, and furthers 
the objectives of section 6(b)(5) of the Act,\10\ in particular, in 
that it is designed 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.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change would 
impose

[[Page 43490]]

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 has neither solicited nor received written comments on 
the proposed rule change.

III. 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 (https://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-NYSE-2005-44 on the subject line.

Paper Comments

     Send paper comments in triplicate to Jonathan G. Katz, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-9303.
    All submissions should refer to File Number SR-NYSE-2005-44. 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 (https://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 Section, 100 F Street, 
NE., Washington, DC 20549. Copies of such filing also will be available 
for inspection and copying at the principal office of the NYSE. 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-NYSE-2005-44 and should be 
submitted on or before August 17, 2005.

IV. Commission's Findings and Order Granting Accelerated Approval of 
Proposed Rule Change

    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.\11\ In particular, the Commission believes that the proposed 
rule change is consistent with section 6(b)(5) of the Act,\12\ which 
requires among other things, that the rules of the Exchange are 
designed to promote just and equitable principles of trade, 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 believes that the proposed change would 
continue to provide for widespread availability of index information in 
connection with listing or trading ICUs under the generic standards in 
Section 703.16 of the Company Manual and will facilitate the 
utilization of the generic standards, while maintaining comparable or 
increased public availability of index information.\13\
---------------------------------------------------------------------------

    \11\ In approving this proposal, the Commission has considered 
its impact on efficiency, competition, and capital formation. 15 
U.S.C. 78c(f).
    \12\ 15 U.S.C. 78f(b)(5).
    \13\ See Securities Exchange Act Release Nos. 51748 (May 26, 
2005), 70 FR 32684 (June 3, 2005) (SR-NASD-2005-024); and 51868 
(June 17, 2005), 70 FR 36672 (June 24, 2005) (SR-Amex-2005-44).
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    The NYSE has requested that the Commission find good cause for 
approving the proposed rule change prior to the thirtieth day after 
publication of notice thereof in the Federal Register. The Commission 
notes that it has recently approved similar proposals regarding the 
dissemination of the underlying index value for ICU's traded on Nasdaq 
and the American Stock Exchange LLC (``Amex'').\14\ The Commission 
believes that granting accelerated approval of the proposal will allow 
the NYSE to immediately implement these listing standards for 
dissemination of the underlying index value that already are in place 
on Nasdaq and the Amex, along with dissemination of the IIV through one 
or more major market vendors. Accordingly, the Commission finds good 
cause, pursuant to section 19(b)(2) of the Act,\15\ for approving the 
proposed rule change prior to the thirtieth day after the date of 
publication of notice thereof in the Federal Register.
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    \14\ Id.
    \15\ 15 U.S.C. 78s(b)(2).
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V. Conclusion

    It is therefore ordered, pursuant to section 19(b)(2) of the 
Act,\16\ that the proposed rule change (SR-NYSE-2005-44) be, and hereby 
is, approved on an accelerated basis.
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    \16\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\17\
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    \17\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. E5-4000 Filed 7-26-05; 8:45 am]
BILLING CODE 8010-01-P

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