Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing of a Proposed Rule Change Relating to the Exchange's Generic Listing Standards for Index-Linked Securities, 63060-63061 [E6-17996]

Download as PDF 63060 Federal Register / Vol. 71, No. 208 / Friday, October 27, 2006 / Notices should be submitted on or before November 17, 2006. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.8 Nancy M. Morris, Secretary. [FR Doc. E6–17992 Filed 10–26–06; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–54636; File No. SR– NYSEArca–2006–70] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing of a Proposed Rule Change Relating to the Exchange’s Generic Listing Standards for Index-Linked Securities October 20, 2006. 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 October 2, 2006, NYSE Arca, Inc. (‘‘Exchange’’), through its wholly-owned subsidiary NYSE Arca Equities, Inc. (‘‘NYSE Arca Equities’’ or the ‘‘Corporation’’), 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 Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange is proposing to amend NYSE Arca Equities Rule 5.2(j)(6) to extend the maximum duration of indexlinked securities (‘‘Index-Linked Securities’’) from ten (10) years to thirty (30) years. The text of the proposed rule change appears below. Proposed new language is in italics; proposed deletions are in [brackets]. * * * * * NYSE Arca Equities jlentini on PROD1PC65 with NOTICES Rule 5.2(j)(6). Index-Linked Securities Index-linked securities are securities that provide for the payment at maturity of a cash amount based on the performance of an underlying index or indexes. Such securities may or may not provide for the repayment of the original principal investment amount. 8 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 VerDate Aug<31>2005 16:53 Oct 26, 2006 Jkt 211001 The Corporation may submit a rule filing pursuant to Section 19(b)(2) of the Securities Exchange Act of 1934 (‘‘Act’’) to permit the listing and trading of index-linked securities that do not otherwise meet the standards set forth below in paragraphs (a) through (k). The Corporation will consider for listing and trading pursuant to Rule 19b–4(e) under the Act, index-linked securities provided: * * * * * (b) The issue has a minimum term of one (1) year but no greater than [ten (10)] thirty (30) years. * * * * * II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange states that the purpose of the proposed rule change is to amend the Exchange’s rules to extend the maximum duration of Index-Linked Securities from ten (10) years to thirty (30) years. Pursuant to NYSE Arca Equities Rule 5.2(j)(6), the Exchange may approve for listing and trading securities that cannot be readily categorized under the listing criteria for common and preferred securities, bonds, debentures, or warrants. In August 2005, the Commission approved the Exchange’s proposal to add NYSE Arca Equities Rule 5.2(j) (which was a PCX rule at the time) to the NYSE Arca Equities rule for the purpose of adopting generic listing standards pursuant to Rule 19b–4(e) 3 in connection with Index-Linked Securities.4 3 17 CFR 240.19b–4(e). Securities Exchange Act Release No. 52204 (August 3, 2005), 70 FR 46559 (August 10, 2005) (SR–PCX–2005–63). Telephone Conference on October 20, 2006 between John Carey, Assistant General Counsel, Exchange, and Hong-anh Tran, Special Counsel, Division of Market Regulation (‘‘Division’’), Commission (Telephone Conference). 4 See PO 00000 Frm 00076 Fmt 4703 Sfmt 4703 NYSE Arca Equities Rule 5.2(j)(6) sets forth criteria that the issue and the issuer must meet in order to list and trade Index-Linked Securities at the Exchange.5 Currently, one of the criteria the Exchange considers for the listing and trading of Index-Linked Securities, pursuant to NYSE Arca Equities Rule 5.2(j)(6), is that the term of the issue must be a minimum term of one (1) year but not greater than ten (10) years. The Exchange proposes to amend NYSE Arca Equities Rule 5.2(j)(6)(b) to extend the duration of the term of the issue from ten (10) years to thirty (30) years. The Exchange believes this amendment to NYSE Arca Equities Rule 5.2(j)(6)(b) is appropriate due to the increase demand from issuers to list and trade Index-Linked Securities that are greater than ten (10) years in duration. In addition, the Exchange notes that corporate bonds and other fixed-income products have historically been issued with terms of up to, or greater than, thirty (30) years. The Exchange believes expanding the duration for Index-Linked Securities, subject to generic listing standards in NYSE Arca Equities Rule 5.2(j)(6), will help to foster competition and promote enhanced efficiency in the marketplace. Incorporating these guidelines into the Exchange’s generic listing standards for Index-Linked Securities will allow Index-Linked Securities that satisfy the listing standards to begin trading pursuant to Rule 19b–4(e), without constituting a proposed rule change within the meaning of Section 19(b) of the Act and Rule 19b–4, for which notice and comment and Commission approval is necessary.6 The Exchange’s ability to rely on Rule 19b–4(e) to list such Index-Linked Securities potentially reduces the time frame for bringing these securities to the market, thereby promoting competition and making such products available to investors more quickly. The Exchange also notes that the Commission has approved amendments to the generic listing standards for equity-linked notes that removed the maximum term limits for those securities.7 5 NYSE Arca Equities Rule 5.2(j)(6) permits the Exchange to submit a rule filing pursuant to Section 19(b)(2) of the Act to allow the listing and trading of Index-Linked Securities that do not otherwise meet the generic listing criteria. 6 Telephone Conference on October 19, 2006 between John Carey, Assistant General Counsel, Exchange, and Hong-anh Tran, Special Counsel, Division, Commission. 7 Telephone Conference. See Securities Exchange Act Release Nos. 42110 (November 5, 1999), 64 FR 61677 (November 12, 1999) (SR–Amex–99–33); 41992 (October 7, 1999), 64 FR 56007 (October 15, 1999) (SR–NYSE–99–22); and 42313 (January 4, 2000), 65 FR 2205 (January 13, 2000) (SR–Chx–99– 19). E:\FR\FM\27OCN1.SGM 27OCN1 Federal Register / Vol. 71, No. 208 / Friday, October 27, 2006 / Notices 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,8 in general, and furthers the objectives of Section 6(b)(5),9 in particular, in that it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, and to remove impediments and perfect the mechanism of a free and open market, 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 will impose any burden on competition that is not necessary or appropriate in furtherance of the purpose of the Act. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others Written comments on the proposed rule change were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Within 35 days of the date of publication of this notice in the Federal Register or within such longer period (i) as the Commission may designate up to 90 days of such date if it finds such longer period to be appropriate and publishes its reasons for so finding or (ii) as to which the self-regulatory organization consents, the Commission will: A. By order approve such proposed rule change; or B. Institute proceedings to determine whether the proposed rule change should be disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: • Send e-mail to rulecomments@sec.gov. Please include File Number SR–NYSEArca–2006–70 on the subject line. jlentini on PROD1PC65 with NOTICES U.S.C. 78f(b). U.S.C. 78f(b)(5). VerDate Aug<31>2005 16:53 Oct 26, 2006 • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. ACTION: All submissions should refer to file Number SR–NYSEArca–2006–70. This file number should be included on the subject line if e-mail is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission’s Internet Web site (http://www.sec.gov/ rules/sro/shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than 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 filings will also be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File number SR–NYSEArca–2006–70 and should be submitted by November 17, 2006. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.10 Nancy M. Morris, Secretary. [FR Doc. E6–17996 Filed 10–26–06; 8:45 am] BILLING CODE 8011–01–P 10 17 Jkt 211001 [Public Notice 5596] 30-Day Notice of Proposed Information Collection: DS–3052, Nonimmigrant V Visa Application, OMB Control Number 1405–0128 • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or 9 15 DEPARTMENT OF STATE Paper Comments Electronic Comments 8 15 63061 PO 00000 CFR 200.30–3(a)(12). Frm 00077 Fmt 4703 Sfmt 4703 Notice of request for public comment and submission to OMB of proposed collection of information. SUMMARY: The Department of State has submitted the following information collection request to the Office of Management and Budget (OMB) for approval in accordance with the Paperwork Reduction Act of 1995. • Title of Information Collection: Nonimmigrant V Visa Application. • OMB Control Number: 1405–0128. • Type of Request: Extension of Currently Approved Collection. • Originating Office: Bureau of Consular Affairs, Office of Visa Services (CA/VO). • Form Number: DS–3052. • Respondents: Applicants for a V nonimmigrant visa. • Estimated Number of Respondents: 1,500. • Estimated Number of Responses: 1,500. • Average Hours per Response: 1 hour. • Total Estimated Burden: 1,500 hours. • Frequency: Once per application. • Obligation to Respond: Required to Obtain Benefit. DATES: Submit comments to the Office of Management and Budget (OMB) for up to 30 days from October 27, 2006. ADDRESSES: Direct comments and questions to Katherine Astrich, the Department of State Desk Officer in the Office of Information and Regulatory Affairs at the Office of Management and Budget (OMB), who may be reached at 202–395–4718. You may submit comments by any of the following methods: • E-mail: Katherine_T._Astrich@omb.eop.gov. You must include the DS form number, information collection title, and OMB control number in the subject line of your message. • Mail (paper, disk, or CD-ROM submissions): Office of Information and Regulatory Affairs, Office of Management and Budget, 725 17th Street, NW., Washington, DC 20503. • Fax: 202–395–6974. FOR FURTHER INFORMATION CONTACT: Direct requests for additional information regarding the collection listed in this notice, including requests E:\FR\FM\27OCN1.SGM 27OCN1

Agencies

[Federal Register Volume 71, Number 208 (Friday, October 27, 2006)]
[Notices]
[Pages 63060-63061]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-17996]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54636; File No. SR-NYSEArca-2006-70]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
of a Proposed Rule Change Relating to the Exchange's Generic Listing 
Standards for Index-Linked Securities

October 20, 2006.
    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 October 2, 2006, NYSE Arca, Inc. (``Exchange''), through its wholly-
owned subsidiary NYSE Arca Equities, Inc. (``NYSE Arca Equities'' or 
the ``Corporation''), 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 Exchange. The 
Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons.
---------------------------------------------------------------------------

    \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 Exchange is proposing to amend NYSE Arca Equities Rule 
5.2(j)(6) to extend the maximum duration of index-linked securities 
(``Index-Linked Securities'') from ten (10) years to thirty (30) years. 
The text of the proposed rule change appears below. Proposed new 
language is in italics; proposed deletions are in [brackets].
* * * * *
NYSE Arca Equities
Rule 5.2(j)(6). Index-Linked Securities
    Index-linked securities are securities that provide for the payment 
at maturity of a cash amount based on the performance of an underlying 
index or indexes. Such securities may or may not provide for the 
repayment of the original principal investment amount. The Corporation 
may submit a rule filing pursuant to Section 19(b)(2) of the Securities 
Exchange Act of 1934 (``Act'') to permit the listing and trading of 
index-linked securities that do not otherwise meet the standards set 
forth below in paragraphs (a) through (k). The Corporation will 
consider for listing and trading pursuant to Rule 19b-4(e) under the 
Act, index-linked securities provided:
* * * * *
    (b) The issue has a minimum term of one (1) year but no greater 
than [ten (10)] thirty (30) years.
* * * * *

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of, and basis for, the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange has prepared summaries, set forth in 
Sections A, B, and C below, of the most significant aspects of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange states that the purpose of the proposed rule change is 
to amend the Exchange's rules to extend the maximum duration of Index-
Linked Securities from ten (10) years to thirty (30) years.
    Pursuant to NYSE Arca Equities Rule 5.2(j)(6), the Exchange may 
approve for listing and trading securities that cannot be readily 
categorized under the listing criteria for common and preferred 
securities, bonds, debentures, or warrants. In August 2005, the 
Commission approved the Exchange's proposal to add NYSE Arca Equities 
Rule 5.2(j) (which was a PCX rule at the time) to the NYSE Arca 
Equities rule for the purpose of adopting generic listing standards 
pursuant to Rule 19b-4(e) \3\ in connection with Index-Linked 
Securities.\4\
---------------------------------------------------------------------------

    \3\ 17 CFR 240.19b-4(e).
    \4\ See Securities Exchange Act Release No. 52204 (August 3, 
2005), 70 FR 46559 (August 10, 2005) (SR-PCX-2005-63). Telephone 
Conference on October 20, 2006 between John Carey, Assistant General 
Counsel, Exchange, and Hong-anh Tran, Special Counsel, Division of 
Market Regulation (``Division''), Commission (Telephone Conference).
---------------------------------------------------------------------------

    NYSE Arca Equities Rule 5.2(j)(6) sets forth criteria that the 
issue and the issuer must meet in order to list and trade Index-Linked 
Securities at the Exchange.\5\ Currently, one of the criteria the 
Exchange considers for the listing and trading of Index-Linked 
Securities, pursuant to NYSE Arca Equities Rule 5.2(j)(6), is that the 
term of the issue must be a minimum term of one (1) year but not 
greater than ten (10) years. The Exchange proposes to amend NYSE Arca 
Equities Rule 5.2(j)(6)(b) to extend the duration of the term of the 
issue from ten (10) years to thirty (30) years. The Exchange believes 
this amendment to NYSE Arca Equities Rule 5.2(j)(6)(b) is appropriate 
due to the increase demand from issuers to list and trade Index-Linked 
Securities that are greater than ten (10) years in duration. In 
addition, the Exchange notes that corporate bonds and other fixed-
income products have historically been issued with terms of up to, or 
greater than, thirty (30) years.
---------------------------------------------------------------------------

    \5\ NYSE Arca Equities Rule 5.2(j)(6) permits the Exchange to 
submit a rule filing pursuant to Section 19(b)(2) of the Act to 
allow the listing and trading of Index-Linked Securities that do not 
otherwise meet the generic listing criteria.
---------------------------------------------------------------------------

    The Exchange believes expanding the duration for Index-Linked 
Securities, subject to generic listing standards in NYSE Arca Equities 
Rule 5.2(j)(6), will help to foster competition and promote enhanced 
efficiency in the marketplace. Incorporating these guidelines into the 
Exchange's generic listing standards for Index-Linked Securities will 
allow Index-Linked Securities that satisfy the listing standards to 
begin trading pursuant to Rule 19b-4(e), without constituting a 
proposed rule change within the meaning of Section 19(b) of the Act and 
Rule 19b-4, for which notice and comment and Commission approval is 
necessary.\6\ The Exchange's ability to rely on Rule 19b-4(e) to list 
such Index-Linked Securities potentially reduces the time frame for 
bringing these securities to the market, thereby promoting competition 
and making such products available to investors more quickly. The 
Exchange also notes that the Commission has approved amendments to the 
generic listing standards for equity-linked notes that removed the 
maximum term limits for those securities.\7\
---------------------------------------------------------------------------

    \6\ Telephone Conference on October 19, 2006 between John Carey, 
Assistant General Counsel, Exchange, and Hong-anh Tran, Special 
Counsel, Division, Commission.
    \7\ Telephone Conference. See Securities Exchange Act Release 
Nos. 42110 (November 5, 1999), 64 FR 61677 (November 12, 1999) (SR-
Amex-99-33); 41992 (October 7, 1999), 64 FR 56007 (October 15, 1999) 
(SR-NYSE-99-22); and 42313 (January 4, 2000), 65 FR 2205 (January 
13, 2000) (SR-Chx-99-19).

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[[Page 63061]]

2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\8\ in general, and furthers the 
objectives of Section 6(b)(5),\9\ in particular, in that it is designed 
to prevent fraudulent and manipulative acts and practices, to promote 
just and equitable principles of trade, to foster cooperation and 
coordination with persons engaged in facilitating transactions in 
securities, and to remove impediments and perfect the mechanism of a 
free and open market, and, in general to protect investors and the 
public interest.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f(b).
    \9\ 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 will 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purpose of the Act.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants or Others

    Written comments on the proposed rule change were neither solicited 
nor received.

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

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

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send e-mail to rule-comments@sec.gov. Please include File 
Number SR-NYSEArca-2006-70 on the subject line.

Paper Comments

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

All submissions should refer to file Number SR-NYSEArca-2006-70. This 
file number should be included on the subject line if e-mail is used. 
To help the Commission process and review your comments more 
efficiently, please use only one method. The Commission will post all 
comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro/shtml). Copies of the submission, all subsequent amendments, 
all written statements with respect to the proposed rule change that 
are filed with the Commission, and all written communications relating 
to the proposed rule change between the Commission and any person, 
other than 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 
filings will also be available for inspection and copying at the 
principal office of the Exchange. All comments received will be posted 
without change; the Commission does not edit personal identifying 
information from submissions. You should submit only information that 
you wish to make available publicly. All submissions should refer to 
File number SR-NYSEArca-2006-70 and should be submitted by November 17, 
2006.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\10\
---------------------------------------------------------------------------

    \10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Nancy M. Morris,
Secretary.
 [FR Doc. E6-17996 Filed 10-26-06; 8:45 am]
BILLING CODE 8011-01-P