Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Declaration of Effectiveness of the Fingerprint Plan of the NASDAQ Stock Market LLC, 33007-33008 [E6-8808]
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Federal Register / Vol. 71, No. 109 / Wednesday, June 7, 2006 / Notices
adviser registered under the Investment
Advisers Act of 1940, serves as
investment adviser to each New Fund.
The Distributor, a broker-dealer
unaffiliated with the Adviser and
registered under the Securities
Exchange Act of 1934, serves as the
principal underwriter for the Trust.
2. The Trust is currently permitted to
offer several series based on fixedincome securities indices in reliance on
the Prior Order. Applicants seek to
amend the Prior Order to permit the
Trust to offer the two New Funds, each
of which, except as described in the
application, would operate in a manner
identical to the existing series of the
Trust that are subject to the Prior
Order.2
3. Each New Fund will invest in a
portfolio of securities generally
consisting of the component securities
of a specified U.S. bond index (each, an
‘‘Underlying Index’’).3 No entity that
creates, compiles, sponsors, or
maintains an Underlying Index is or
will be an affiliated person, as defined
in section 2(a)(3) of the Act, or an
affiliated person of an affiliated person,
of the Trust, the Adviser, the
Distributor, or a promoter of a New
Fund.
4. Each Underlying Index contains
fixed-income securities that are eligible
for inclusion in the underlying index for
an existing series of the Trust that is
subject to the Prior Order 4 The 1–3 Year
Credit Index represents that portion of
the Aggregate Index consisting of U.S.
investment grade bonds that have a
remaining maturity of 1 to 3 years. The
MBS Index represents that portion of
the Aggregate Index consisting of U.S.
agency mortgage pass-through
securities. As with the Aggregate Bond
Fund, the New Fund that would be
based on the MBS Index (‘‘MBS Fund’’)
intends to use ‘‘to-be-announced’’
(‘‘TBA’’) transactions and, in some
cases, invest directly in U.S. agency
mortgage pass-through securities, to
track the performance of U.S. agency
mortgage pass-through securities.5
rwilkins on PROD1PC63 with NOTICES
2 If
the amended order is granted, the New Funds
would also be able to rely on an exemptive order
granting certain relief from section 24(d) of the Act
to the existing series of the Trust that are subject
to the Prior Order. See iShares, Inc., et al.,
Investment Company Act Release No. 25623 (June
25, 2002) (order).
3 The Underlying Indices for the New Funds are
Lehman Brothers 1–3 Year U.S. Credit Index (‘‘1–
3 Year Credit Index’’) and Lehman Brothers U.S.
MBS Fixed Rate Index (‘‘MBS Index’’).
4 The Lehman Brothers U.S. Aggregate Index
(‘‘Aggregate Index’’) is the underlying index of
iShares U.S. Aggregate Bond Fund (‘‘Aggregate
Fund’’).
5 ‘‘TBA’’ refers to a mechanism for the forward
settlement of United States agency mortgage-pass
through securities that permits the United States
VerDate Aug<31>2005
17:54 Jun 06, 2006
Jkt 208001
5. The investment objective of each
New Fund will be to provide investment
results that correspond generally to the
price and yield performance of its
relevant Underlying Index. Each New
Fund will utilize as an investment
approach a representative sampling
strategy where each New Fund will seek
to hold a representative sample of the
component securities of the Underlying
Index. The New Fund that would track
the 1–3 Year Credit Index will invest at
least 90% of its assets in the component
securities of its Underlying Index and
may invest the remainder of its assets in
certain futures, options, and swap
contracts, cash and cash equivalents,
and in bonds not included in its
Underlying Index which the Adviser
believes will help the New Fund track
its Underlying Index. The MBS Fund
will have at least 90% of its assets
invested in: (a) Component securities of
its Underlying Index and (b)
investments that have economic
characteristics that are substantially
identical to the economic characteristics
of the component securities of its
Underlying Index (i.e., the TBAs, as
discussed above).6 The MBS Fund may
invest the remainder of its assets in
certain futures, options, and swap
contracts, cash and cash equivalents,
and in bonds not included in its
Underlying Index which the Adviser
believes will help the New Fund track
its Underlying Index. Applicants expect
that each New Fund will have a tracking
error relative to the performance of its
respective Underlying Index of no more
than 5 percent.
6. Applicants state that all discussions
contained in the application for the
Prior Order are equally applicable to the
New Funds, except as specifically noted
by applicants (as summarized above).
Applicants agree that the amended
order will subject applicants to the same
conditions as imposed by the Prior
Order. Applicants believe that the
requested relief continues to meet the
necessary exemptive standards.
agency mortgage-pass through securities to be
traded interchangeably pursuant to commonly
observed settlement and delivery requirements.
Applicants state that the use of TBA transactions
permits investors to obtain exposure to U.S. agency
mortgage pass-through securities, while promoting
liquidity and price transparency.
6 As with the process used by the Aggregate Fund,
the MBS Fund may accept delivery of a specified
amount of ‘‘cash-in-lieu’’ of delivery of the
designated U.S. agency mortgage pass-through
securities or TBAs. This practice could result in
cash-only creations and redemptions. Applicants do
not believe that the acceptance of ‘‘cash-in-lieu’’ of
U.S. agency mortgage pass-through securities or
TBAs on a regular basis by the MBS Fund presents
any material or unforeseen operation issues or will
otherwise have a negative impact on the operation
of the MBS Fund or the secondary market trading
of shares of the MBS Fund.
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33007
For the Commission, by the Division of
Investment Management, pursuant to
delegated authority.
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E6–8803 Filed 6–6–06; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–53908]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC;
Declaration of Effectiveness of the
Fingerprint Plan of the NASDAQ Stock
Market LLC
May 31, 2006.
On May 30, 2006, the NASDAQ Stock
Market LLC (‘‘Nasdaq’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’ or ‘‘SEC’’) a fingerprint
plan (‘‘Plan’’) pursuant to Rule 17f–
2(c) 1 under the Securities Exchange Act
of 1934 (‘‘Act’’).2
Nasdaq believes that the Plan will
facilitate compliance by Nasdaq
members and Nasdaq member
applicants (together, ‘‘participants’’)
with section 17(f)(2) of the Exchange
Act and Rule 17f–2 thereunder, by
providing a facility for participants to
have the fingerprints of their partners,
directors, officers, and employees
processed by the Attorney General of
the United States or his designee
(‘‘Attorney General’’).
The Plan will be administered for
Nasdaq by NASD Regulation, Inc.
(‘‘NASDR’’) and the National
Association of Securities Dealers, Inc.
(‘‘NASD’’), the parent corporation of
NASDR, pursuant to a regulatory
services agreement between NASDR and
Nasdaq (the ‘‘Regulatory Contract’’). The
Commission notes that, notwithstanding
the fact that Nasdaq has entered into the
Regulatory Contract to have NASDR
perform some of Nasdaq’s functions,
Nasdaq shall retain ultimate legal
responsibility for, and control of, such
functions.
Under the Plan, participants submit
fingerprints and identifying
information, on paper or electronically,
to the NASD, which then forwards the
cards to the Federal Bureau of
Investigation (‘‘FBI’’) (the fingerprint
processing arm of the Attorney General).
The FBI identifies submitted
fingerprints, retrieves relevant criminal
history information, and returns
fingerprint reports (including the
original paper fingerprint cards, if any)
1 17
2 15
E:\FR\FM\07JNN1.SGM
CFR 240.17f–2(c).
U.S.C. 78a et seq.
07JNN1
33008
Federal Register / Vol. 71, No. 109 / Wednesday, June 7, 2006 / Notices
to authorized recipients (i.e., to a
participant that submitted the
fingerprints and to regulators for
licensing, registration and other
regulatory purposes). Under the terms of
the Plan, participants will be able to
view the status and results of
fingerprints, including any relevant
criminal history information, through
the NASD’s Central Registration
Depository (CRD) system after
submission to the Attorney General.
The Commission has reviewed the
procedures detailed in the Plan and
believes that the Plan is consistent with
the public interest and the protection of
investors. Thus, the Commission
declares the Plan to be effective.
The Commission notes that securities
industry fingerprinting procedures are
in a state of flux due to rapidly
advancing technology. In the event that
an industry-wide standard is adopted or
becomes prevalent and in the event that
this Plan substantially differs therefrom,
the Commission would expect Nasdaq
to revise its fingerprint plan to
incorporate the industry-wide standard.
rwilkins on PROD1PC63 with NOTICES
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.3
J. Lynn Taylor,
Assistant Secretary.
Exhibit A—The NASDAQ Stock Market
LLC; Fingerprint Plan
The NASDAQ Stock Market LLC
(‘‘Nasdaq’’) submits this Fingerprint
Plan (‘‘Plan’’) pursuant to Rule 17f–2(c)
under the Securities Exchange Act of
1934 (‘‘Exchange Act’’).
The purpose of this Plan is to
facilitate compliance by Nasdaq
members and Nasdaq member
applicants with section 17(f)(2) of the
Exchange Act and Rule 17f–2
thereunder, by providing a mechanism
for Nasdaq members and Nasdaq
member applicants to have the
fingerprints of their partners, directors,
officers, and employees processed by
the Attorney General of the United
States or his designee (hereinafter
‘‘Attorney General’’) as required by
section 17(f)(2) of the Exchange Act and
Rule 17f–2 thereunder. The Plan will be
administered for Nasdaq by NASD
Regulation, Inc. (‘‘NASDR’’) and the
National Association of Securities
Dealers, Inc. (‘‘NASD’’), the parent
corporation of NASDR, pursuant to a
regulatory services agreement between
NASDR and Nasdaq (the ‘‘Regulatory
Contract’’). In the event that Nasdaq
enters into a contract to administer the
Plan with a regulatory service provider
other than NASDR or decides to
3 17
4 Securities Exchange Act Release No. 53751 (May
2, 2006), 71 FR 27299 (May 10, 2006).
CFR 200.30–3(a)(17)(iii).
VerDate Aug<31>2005
17:54 Jun 06, 2006
administer the Plan itself, Nasdaq shall
file an amendment to the Plan with the
Securities and Exchange Commission
(the ‘‘Commission’’). Notwithstanding
the fact that Nasdaq has entered into the
Regulatory Contract to have NASDR
perform some of Nasdaq’s functions,
Nasdaq shall retain ultimate legal
responsibility for, and control of, such
functions.
NASD, pursuant to a Plan filed with
and declared effective by the
Commission,4 processes fingerprint
records of securities industry
participants as described herein
consistent with section 17(f)(2) of the
Exchange Act and Rule 17f–2
thereunder.
NASD accepts fingerprints and
identifying information from associated
persons of Nasdaq members and Nasdaq
member applicants required to be
fingerprinted pursuant to Rule 17f–2.
Nasdaq members and Nasdaq member
applicants may submit fingerprints and
identifying information on paper or
electronically, provided such
submissions are consistent with
protocols and requirements established
by the Attorney General.
NASD transmits fingerprints and
identifying information, on paper or
electronically, to the Attorney General
for identification and processing,
consistent with protocols and
requirements established by the
Attorney General.
NASD receives processed results from
the Attorney General (on paper or
electronically) and transmits those
results via paper or electronic means to
authorized recipients (i.e., to a Nasdaq
member or Nasdaq member applicant
that submitted the fingerprints and to
regulators for licensing, registration and
other regulatory purposes), consistent
with protocols and requirements
established by the Attorney General. In
cases where the Attorney General’s
search on the fingerprints submitted
fails to disclose prior arrest data, NASD
transmits that result to the Nasdaq
member or Nasdaq member applicant
that submitted the fingerprints. In cases
where the Attorney General’s search
yields Criminal History Record
Information (CHRI), NASD transmits
that information to the Nasdaq member
or Nasdaq member applicant that
submitted the fingerprints. With respect
to Nasdaq members, NASD also reviews
any CHRI returned by the Attorney
General to identify persons who may be
subject to statutory disqualification
under the Exchange Act and notifies
NASD and Nasdaq staff to take action,
Jkt 208001
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Frm 00096
Fmt 4703
Sfmt 4703
as appropriate, with respect to such
persons.
Nasdaq advises its members and
member applicants of the availability of
fingerprint services and any fees
charged in connection with those
services and the processing of
fingerprints pursuant to this Plan.
Nasdaq will file any such Nasdaq
member fees with the Commission
pursuant to section 19(b) of the
Exchange Act.
NASD maintains copies of fingerprint
processing results received from the
Attorney General with respect to
fingerprints submitted by NASD
pursuant to this Plan, in accordance
with Nasdaq’s record retention
obligations under the Act. Any
maintenance of fingerprint records by
NASD shall be for NASD’s and Nasdaq’s
own administrative purposes, and
NASD is not undertaking to maintain
fingerprint records on behalf of Nasdaq
members pursuant to Rule 17f–2(d)(2).
NASD records in the Central
Registration Depository (CRD() the
status of fingerprints submitted to the
Attorney General. Through the CRD
system, NASD makes available to a
Nasdaq member that has submitted
fingerprints the status and results of
such fingerprints after submission to the
Attorney General.
Neither NASD nor Nasdaq shall be
liable for losses or damages of any kind
in connection with fingerprinting
services, as a result of a failure to
follow, or properly to follow, the
procedures described above, or as a
result of lost or delayed fingerprint
cards, electronic fingerprint records, or
fingerprint reports, or as a result of any
action by NASD or Nasdaq or NASD’s
or Nasdaq’s failure to take action in
connection with this Plan.
[FR Doc. E6–8808 Filed 6–6–06; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–53917; File No. SR–Amex–
2005–116]
Self-Regulatory Organizations;
American Stock Exchange, Inc.; Order
Granting Approval to Proposed Rule
Change and Amendment No. 1 Thereto
Relating to Written Compliance and
Supervisory Controls
June 1, 2006.
I. Introduction
On November 7, 2005, the American
Stock Exchange, Inc. (‘‘Amex’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
E:\FR\FM\07JNN1.SGM
07JNN1
]]>Agencies
[Federal Register Volume 71, Number 109 (Wednesday, June 7, 2006)]
[Notices]
[Pages 33007-33008]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-8808]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-53908]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Declaration of Effectiveness of the Fingerprint Plan of the NASDAQ
Stock Market LLC
May 31, 2006.
On May 30, 2006, the NASDAQ Stock Market LLC (``Nasdaq'') filed
with the Securities and Exchange Commission (``Commission'' or ``SEC'')
a fingerprint plan (``Plan'') pursuant to Rule 17f-2(c) \1\ under the
Securities Exchange Act of 1934 (``Act'').\2\
---------------------------------------------------------------------------
\1\ 17 CFR 240.17f-2(c).
\2\ 15 U.S.C. 78a et seq.
---------------------------------------------------------------------------
Nasdaq believes that the Plan will facilitate compliance by Nasdaq
members and Nasdaq member applicants (together, ``participants'') with
section 17(f)(2) of the Exchange Act and Rule 17f-2 thereunder, by
providing a facility for participants to have the fingerprints of their
partners, directors, officers, and employees processed by the Attorney
General of the United States or his designee (``Attorney General'').
The Plan will be administered for Nasdaq by NASD Regulation, Inc.
(``NASDR'') and the National Association of Securities Dealers, Inc.
(``NASD''), the parent corporation of NASDR, pursuant to a regulatory
services agreement between NASDR and Nasdaq (the ``Regulatory
Contract''). The Commission notes that, notwithstanding the fact that
Nasdaq has entered into the Regulatory Contract to have NASDR perform
some of Nasdaq's functions, Nasdaq shall retain ultimate legal
responsibility for, and control of, such functions.
Under the Plan, participants submit fingerprints and identifying
information, on paper or electronically, to the NASD, which then
forwards the cards to the Federal Bureau of Investigation (``FBI'')
(the fingerprint processing arm of the Attorney General). The FBI
identifies submitted fingerprints, retrieves relevant criminal history
information, and returns fingerprint reports (including the original
paper fingerprint cards, if any)
[[Page 33008]]
to authorized recipients (i.e., to a participant that submitted the
fingerprints and to regulators for licensing, registration and other
regulatory purposes). Under the terms of the Plan, participants will be
able to view the status and results of fingerprints, including any
relevant criminal history information, through the NASD's Central
Registration Depository (CRD[supreg]) system after submission to the
Attorney General.
The Commission has reviewed the procedures detailed in the Plan and
believes that the Plan is consistent with the public interest and the
protection of investors. Thus, the Commission declares the Plan to be
effective.
The Commission notes that securities industry fingerprinting
procedures are in a state of flux due to rapidly advancing technology.
In the event that an industry-wide standard is adopted or becomes
prevalent and in the event that this Plan substantially differs
therefrom, the Commission would expect Nasdaq to revise its fingerprint
plan to incorporate the industry-wide standard.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\3\
---------------------------------------------------------------------------
\3\ 17 CFR 200.30-3(a)(17)(iii).
---------------------------------------------------------------------------
J. Lynn Taylor,
Assistant Secretary.
Exhibit A--The NASDAQ Stock Market LLC; Fingerprint Plan
The NASDAQ Stock Market LLC (``Nasdaq'') submits this Fingerprint
Plan (``Plan'') pursuant to Rule 17f-2(c) under the Securities Exchange
Act of 1934 (``Exchange Act'').
The purpose of this Plan is to facilitate compliance by Nasdaq
members and Nasdaq member applicants with section 17(f)(2) of the
Exchange Act and Rule 17f-2 thereunder, by providing a mechanism for
Nasdaq members and Nasdaq member applicants to have the fingerprints of
their partners, directors, officers, and employees processed by the
Attorney General of the United States or his designee (hereinafter
``Attorney General'') as required by section 17(f)(2) of the Exchange
Act and Rule 17f-2 thereunder. The Plan will be administered for Nasdaq
by NASD Regulation, Inc. (``NASDR'') and the National Association of
Securities Dealers, Inc. (``NASD''), the parent corporation of NASDR,
pursuant to a regulatory services agreement between NASDR and Nasdaq
(the ``Regulatory Contract''). In the event that Nasdaq enters into a
contract to administer the Plan with a regulatory service provider
other than NASDR or decides to administer the Plan itself, Nasdaq shall
file an amendment to the Plan with the Securities and Exchange
Commission (the ``Commission''). Notwithstanding the fact that Nasdaq
has entered into the Regulatory Contract to have NASDR perform some of
Nasdaq's functions, Nasdaq shall retain ultimate legal responsibility
for, and control of, such functions.
NASD, pursuant to a Plan filed with and declared effective by the
Commission,\4\ processes fingerprint records of securities industry
participants as described herein consistent with section 17(f)(2) of
the Exchange Act and Rule 17f-2 thereunder.
---------------------------------------------------------------------------
\4\ Securities Exchange Act Release No. 53751 (May 2, 2006), 71
FR 27299 (May 10, 2006).
---------------------------------------------------------------------------
NASD accepts fingerprints and identifying information from
associated persons of Nasdaq members and Nasdaq member applicants
required to be fingerprinted pursuant to Rule 17f-2. Nasdaq members and
Nasdaq member applicants may submit fingerprints and identifying
information on paper or electronically, provided such submissions are
consistent with protocols and requirements established by the Attorney
General.
NASD transmits fingerprints and identifying information, on paper
or electronically, to the Attorney General for identification and
processing, consistent with protocols and requirements established by
the Attorney General.
NASD receives processed results from the Attorney General (on paper
or electronically) and transmits those results via paper or electronic
means to authorized recipients (i.e., to a Nasdaq member or Nasdaq
member applicant that submitted the fingerprints and to regulators for
licensing, registration and other regulatory purposes), consistent with
protocols and requirements established by the Attorney General. In
cases where the Attorney General's search on the fingerprints submitted
fails to disclose prior arrest data, NASD transmits that result to the
Nasdaq member or Nasdaq member applicant that submitted the
fingerprints. In cases where the Attorney General's search yields
Criminal History Record Information (CHRI), NASD transmits that
information to the Nasdaq member or Nasdaq member applicant that
submitted the fingerprints. With respect to Nasdaq members, NASD also
reviews any CHRI returned by the Attorney General to identify persons
who may be subject to statutory disqualification under the Exchange Act
and notifies NASD and Nasdaq staff to take action, as appropriate, with
respect to such persons.
Nasdaq advises its members and member applicants of the
availability of fingerprint services and any fees charged in connection
with those services and the processing of fingerprints pursuant to this
Plan. Nasdaq will file any such Nasdaq member fees with the Commission
pursuant to section 19(b) of the Exchange Act.
NASD maintains copies of fingerprint processing results received
from the Attorney General with respect to fingerprints submitted by
NASD pursuant to this Plan, in accordance with Nasdaq's record
retention obligations under the Act. Any maintenance of fingerprint
records by NASD shall be for NASD's and Nasdaq's own administrative
purposes, and NASD is not undertaking to maintain fingerprint records
on behalf of Nasdaq members pursuant to Rule 17f-2(d)(2). NASD records
in the Central Registration Depository (CRD() the status of
fingerprints submitted to the Attorney General. Through the CRD system,
NASD makes available to a Nasdaq member that has submitted fingerprints
the status and results of such fingerprints after submission to the
Attorney General.
Neither NASD nor Nasdaq shall be liable for losses or damages of
any kind in connection with fingerprinting services, as a result of a
failure to follow, or properly to follow, the procedures described
above, or as a result of lost or delayed fingerprint cards, electronic
fingerprint records, or fingerprint reports, or as a result of any
action by NASD or Nasdaq or NASD's or Nasdaq's failure to take action
in connection with this Plan.
[FR Doc. E6-8808 Filed 6-6-06; 8:45 am]
BILLING CODE 8010-01-P
