Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing of Amendment No. 3 to Proposed Rule Change and Order Granting Accelerated Approval to Proposed Rule Change, as Modified by Amendments No. 1, 2, and 3 Thereto, To Adopt Generic Listing Standards for Index-Linked Securities, 25824-25829 [E7-8600]
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25824
Federal Register / Vol. 72, No. 87 / Monday, May 7, 2007 / Notices
warranted to ensure that its monthly
and annual membership fees fund a
greater portion of the cost of regulating
the Nasdaq market. Nasdaq believes that
even with the fee increase, the cost of
Nasdaq membership is generally lower
than the cost of membership in other
SROs.5 In this regard, it is particularly
notable that unlike other SROs, Nasdaq
does not charge annual registration fees
for each of a firm’s registered
representatives.
Nasdaq is also deleting language from
Rule 7001 that waived the application
fee for NASD members applying for
Nasdaq membership prior to August 1,
2006.
2. Statutory Basis
Nasdaq believes that the proposed
rule change is consistent with the
provisions of Section 6 of the Act,6 in
general, and with Section 6(b)(4) of the
Act,7 in particular, in that it 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
Nasdaq operates or controls. Nasdaq
believes that an increased monthly
trading rights fee is a reasonable and
equitable method of ensuring that its
monthly and annual membership fees
fund a greater portion of the cost of
regulating the Nasdaq market, and that
the overall cost of Nasdaq membership
is reasonable as compared with the cost
of membership in other SROs.
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, as amended.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received form
Members, Participants, or Others
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Written comments were neither
solicited nor received.
5 See, e.g., New York Stock Exchange Price List
2007 at https://www.nyse.com/pdfs/2007pricelist.pdf
(itemizing numerous registration, regulation, and
trading rights fees); NASD By-Laws Schedule A,
Section 1 at https://nasd.complinet.com/n nasd/
display/display.html?rbid=1189&element_
id=1159000126; Chicago Stock Exchange Fees and
Assessments at https://wallstreet.cch.com/CHXtools/
PlatformViewer.asp?SelectedNode=chp_1_
1&manual=/CHX/Admin/chx-feesandassessments/.
6 15 U.S.C. 78f.
7 15 U.S.C. 78f(b)(4).
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III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change
has become effective upon filing with
the Commission pursuant to Section
19(b)(3)(A)(ii) of the Act 8 and Rule 19b–
4(f)(2) thereunder,9 in that the proposed
rule change establishes or changes a
member due, fee, or other charge
imposed by the self-regulatory
organization. At any time within 60
days of the filing of the proposed rule
change, the Commission may summarily
abrogate such rule change if it appears
to the Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors,
or otherwise in furtherance of the
purposes of the Act.
the Commission’s Public Reference
Room. Copies of such filing also will be
available for inspection and copying at
the principal office of Nasdaq.
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–NASDAQ–2007–044 and
should be submitted on or before May
29, 2007.
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:
BILLING CODE 8010–01–P
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–NASDAQ–2007–044 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–NASDAQ–
2007–044. 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
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.10
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–8596 Filed 5–4–07; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55687; File No. SR–NYSE–
2007–27]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing of Amendment No. 3 to
Proposed Rule Change and Order
Granting Accelerated Approval to
Proposed Rule Change, as Modified by
Amendments No. 1, 2, and 3 Thereto,
To Adopt Generic Listing Standards
for Index-Linked Securities
May 1, 2007.
I. Introduction
On March 9, 2007, the New York
Stock Exchange LLC (‘‘NYSE’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’) 1 and Rule 19b–4
thereunder,2 a proposed rule change to
adopt generic listing standards for
equity index-linked securities (‘‘Equity
Index-Linked Securities’’), commoditylinked securities (‘‘Commodity-Linked
Securities’’), and currency-linked
securities (‘‘Currency-Linked
Securities’’ and, together with Equity
Index-Linked Securities and
Commodity-Linked Securities, ‘‘IndexLinked Securities’’). On April 4, 2007,
Exchange filed Amendment No. 1 to the
proposed rule change. On April 5, 2007,
the Exchange filed Amendment No. 2 to
the proposed rule change. The proposed
rule change, as amended, was published
for comment in the Federal Register on
10 17
8 15
U.S.C. 78s(b)(3)(A)(ii).
9 17 CFR 240.19b–4(f)(2).
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CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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April 13, 2007 for a 15-day comment
period.3 The Commission received no
comments on the proposal. On April 26,
2007, the Exchange filed Amendment
No. 3 to the proposed rule change.4 This
order approves the proposed rule
change, as modified by Amendments
No. 1, 2, and 3, on an accelerated basis.
II. Description of the Proposal
As explained more fully in the Notice,
the Exchange proposes to add new
Section 703.22 to its Listed Company
Manual (the ‘‘Manual’’) to provide
generic listing standards to permit the
listing and trading of Index-Linked
Securities pursuant to Rule 19b–4(e)
under the Act.5 This proposal will
enable the Exchange to list and trade
Index-Linked Securities pursuant to
Rule 19b–4(e) of the Act if each of the
conditions set forth in proposed Section
703.22 of the Manual is satisfied. Rule
19b–4(e) provides that the listing and
trading of a new derivative securities
product by a self-regulatory organization
(‘‘SRO’’) shall not be deemed a proposed
rule change, pursuant to paragraph
(c)(1) of Rule 19b–4, if the Commission
has approved, pursuant to Section 19(b)
of the Act, the SRO’s trading rules,
procedures, and listing standards for the
product class that would include the
new derivatives securities product, and
the SRO has a surveillance program for
the product class.6
Index-Linked Securities
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Index-Linked Securities are designed
for investors who desire to participate in
a specific market segment by providing
exposure to one or more identifiable
underlying securities, commodities,
currencies, derivative instruments, or
market indexes of the foregoing (the
‘‘Underlying Index’’ or ‘‘Underlying
Indexes’’). Index-Linked Securities are
the non-convertible debt of an issuer
that have a term of at least one year, but
not greater than thirty years, and are
tied to the performance of the
3 See Securities Exchange Act Release No. 55600
(April 9, 2007), 72 FR 18712 (‘‘Notice’’).
4 In Amendment No. 3 to the proposed rule
change, the Exchange clarified the eligibility criteria
for component securities comprising the
Underlying Index (as defined herein) for Equity
Index-Linked Securities, broadened the requirement
for surveillance procedures, including adequate
comprehensive surveillance sharing agreements, for
all Index-Linked Securities, and represented that
Exchange trading rules governing the Index-Linked
Securities would be identified and disclosed in the
Information Memorandum.
5 See 17 CFR 240.19b–4(e)(1).
6 When relying on Rule 19b–4(e), the SRO must
submit Form 19b–4(e) to the Commission within
five business days after the SRO begins trading the
new derivative securities products. See Securities
Exchange Act Release No. 40761 (December 8,
1998), 63 FR 70952 (December 22, 1998).
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Underlying Index. Index-Linked
Securities may or may not make interest
payments based on dividends or other
cash distributions paid on the securities
comprising the Underlying Index or
Indexes to the holder during their term.
Despite the fact that Index-Linked
Securities are linked to an Underlying
Index, each will trade as a single,
exchange-listed security.
The proposed generic listing
standards will not be applicable to
Index-Linked Securities with respect to
which the payment at maturity is based
on a multiple of the negative
performance of an Underlying Index or
Indexes. An Index-Linked Security may
or may not provide ‘‘principal
protection,’’ i.e., a minimum guaranteed
amount to be repaid.7 In addition,
Index-Linked Securities do not give the
holder any right to receive a portfolio
component, dividend payments, or any
other ownership right or interest in the
portfolio or underlying components
comprising the Underlying Index.
Pursuant to proposed Section 703.22 of
the Manual, the current or composite
value of the Underlying Index will be
widely disseminated at least every 15
seconds during the trading day.
Proposed General Listing Criteria for
Index-Linked Securities
The Exchange will apply the
following requirements to all issuers of
Index-Linked Securities:
• If the issuer is a NYSE-listed
company, the entity must be a company
in good standing (i.e., meets NYSE’s
applicable continued listing criteria); if
the issuer is an affiliate of a NYSE-listed
company, the NYSE-listed company
must be a company in good standing; if
not listed, the issuer must meet the size
and earnings requirements of Sections
102.01–102.03 or Sections 103.01–
103.05 of the Manual. Sovereign issuers
will be evaluated on a case-by-case
basis.
• The issuer will be expected to have
a minimum tangible net worth 8 of
$250,000,000. In the alternative, the
issuer will be expected: (i) To have a
minimum tangible net worth of
$150,000,000 and (ii) not to issue IndexLinked Securities, the original issue
price of which, combined with all the
issuer’s other Index-Linked Securities
listed on a national securities exchange,
7 Some Index-Linked Securities may provide for
‘‘contingent’’ protection of the principal amount,
whereby the principal protection may disappear if
the Underlying Index at any point in time during
the life of such security reaches a certain
predetermined level.
8 ‘‘Tangible net worth’’ is defined as total assets,
less intangible assets and total liabilities.
Intangibles include non-material benefits such as
goodwill, patents, copyrights, and trademarks.
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exceeds 25% of the issuer’s tangible net
worth at the time of issuance.9
• The issuer must be in compliance
with Rule 10A–3 under the Act.10
In addition, the Exchange will apply
the following requirements to each issue
of Index-Linked Securities:
• The issue must have a minimum
public distribution of at least 1 million
units and a minimum of 400 holders,
except if traded on the NYSE Bonds
system and the applicable NYSE Bonds
listing and trading standards are
satisfied; 11
• The issue must have a principal
amount/aggregate market value of not
less than $4 million;
• The issue must have a term of at
least one year, but not greater than thirty
years;
• The issue must be the nonconvertible debt of the issuer; and
• The issue must not base its payment
at maturity on a multiple of the negative
performance of an Underlying Index or
Indexes, although the payment at
maturity may or may not provide for a
multiple of the positive performance of
an Underlying Index or Indexes.
Listing Standards for Equity IndexLinked Securities
Equity Index-Linked Securities would
be subject to the criteria in proposed
Section 703.22(B)(I) of the Manual for
initial and continued listing. For an
Underlying Index to be appropriate for
the initial listing of an Equity IndexLinked Security, such Underlying Index
must comprise at least ten component
securities of different issuers. The
Underlying Index must also either: (i)
Be approved for the trading of options
or other derivative securities by the
Commission under Section 19(b)(2) of
the Act 12 and rules thereunder, and the
conditions set forth in the Commission’s
approval order, including
comprehensive surveillance sharing
9 If the Index-Linked Securities are fully and
unconditionally guaranteed by an affiliate of the
issuer, the Exchange will rely on such affiliate’s
tangible net worth for purposes of these
requirements and will include in its calculation all
Index-Linked Securities that are fully and
unconditionally guaranteed by such affiliate.
10 See 17 CFR 240.10A–3 (setting forth the listing
standards relating to audit committees).
11 See NYSE Rule 86 (establishing rules and
standards with respect to the Exchange’s electronic
system, known as ‘‘NYSE Bonds,’’ for receiving,
processing, executing, and reporting bids, offers,
and executions in bonds). In addition, this
requirement will not be applicable if the issue
provides for the redemption of Index-Linked
Securities at the option of the holders on at least
a weekly basis. See Notice, supra note 3, 72 FR at
18713 (describing the purpose of weekly
redemption rights of Index-Linked Securities and
the rationale behind this exception to the minimum
holder requirement).
12 15 U.S.C. 78s(b)(2).
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agreements for non-U.S. stocks,
continue to be satisfied, or (ii) satisfy
certain eligibility standards, rebalancing
obligations, and empirical requirements
based on market value, trading volume,
and dollar weight percentages.13 In
particular, all component securities
comprising the Underlying Index for
Equity Index-Linked Securities must
either be: (A) securities (other than
foreign country securities and American
Depository Receipts (‘‘ADRs’’), that are
(1) issued by an Act reporting company
which is listed on a national securities
exchange and (2) NMS stocks, as
defined in Rule 600 of Regulation
NMS,14 or (B) foreign country securities
or ADRs, provided that foreign country
securities or foreign country securities
underlying ADRs having their primary
trading market outside the United States
on foreign trading markets that are not
members of the Intermarket
Surveillance Group (‘‘ISG’’) or parties to
comprehensive surveillance sharing
agreements with the Exchange will not,
in the aggregate, represent more than
20% of the dollar weight of the
Underlying Index.
In connection with an Equity IndexLinked Security, the Exchange would
commence delisting or removal
proceedings if any of the standards set
forth in the initial eligibility criteria are
not continuously maintained 15 or an
Underlying Index fails to satisfy the
maintenance standards or conditions for
such Underlying Index or Indexes as set
forth by the Commission in its order
under Section 19(b)(2) of the Act 16
approving the Underlying Index for the
trading of options or other derivatives.
The Exchange would also commence
delisting or removal proceedings of an
Equity Index-Linked Security if: (1) The
aggregate market value or the principal
amount of the Equity Index-Linked
Securities publicly held is less than
$400,000; (2) the value of the
Underlying Index or composite value of
the Underlying Indexes is no longer
calculated and widely disseminated on
at least a 15-second basis during the
time the Equity Index-Linked Securities
trade on the Exchange; or (3) such other
13 See Notice, supra note 3, 72 FR at 18713–18714
(providing, among others, detailed eligibility
requirements of the component securities
comprising the Underlying Index based on
minimum market value, trading volume, and
certain dollar weight percentages).
14 See 17 CFR 242.600(b)(47).
15 Proposed Section 703.22 of the Manual
provides for certain exceptions to the continued
listing criteria of Equity Index-Linked Securities
based on certain numerical requirements and
percentages with respect to the component
securities comprising the Underlying Index. See
Notice, supra note 3, 72 FR at 18714.
16 15 U.S.C. 78s(b)(2).
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event occurs or condition exists which,
in the opinion of the Exchange, makes
further dealings on the Exchange
inadvisable.
Listing Standards for CommodityLinked and Currency-Linked Securities
Commodity-Linked and CurrencyLinked Securities would be subject to
the criteria in proposed Sections
703.22(B)(II) and 703.22(B)(III) of the
Manual, respectively, for initial and
continued listing. Each issue of
Commodity-Linked or Currency-Linked
Securities must meet either of the
following initial listing standards:
• The Commodity Reference Asset 17
or Currency Reference Asset,18 as the
case may be, to which the
corresponding security is linked shall
have been reviewed and approved for
the trading of Commodity Trust Shares
(in the case of Commodity-Linked
Securities) or Currency Trust Shares (in
the case of Currency-Linked Securities),
options, or other derivatives by the
Commission under Section 19(b)(2) of
the Act 19 and rules thereunder, and the
conditions set forth in the Commission’s
approval order, including with respect
to comprehensive surveillance sharing
agreements, continue to be satisfied; or
• The pricing information for each
component of a Commodity Reference
Asset or Currency Reference Asset, as
the case may be, must be derived from
certain required sources.20
With respect to each of the
Commodity-Linked and CurrencyLinked Securities, the value of the
Commodity Reference Asset or Currency
Reference Asset, as the case may be,
must be calculated and widely
disseminated on at least a 15-second
basis during the time the corresponding
Commodity-Linked or Currency-Linked
Securities trade on the Exchange. In
17 Commodity Reference Asset is defined as one
or more physical commodities or commodity
futures, options, or other commodity derivatives,
Commodity Trust Shares (as defined in NYSE Rule
1300B), or a basket or index of any of the foregoing.
18 Currency Reference Asset is defined as one or
more currencies, or options, currency futures, or
other currency derivatives, Currency Trust Shares
(as defined in NYSE Rule 1300A), or a basket or
index of any of the foregoing.
19 15 U.S.C. 78s(b)(2).
20 In the case of a Commodity Reference Asset,
the pricing information for each component thereof
must be derived from a market which is an ISG
member or affiliate or with which the Exchange has
a comprehensive surveillance sharing agreement. In
the case of a Currency Reference Asset, the pricing
information for each component thereof must be
either (1) the generally accepted spot price for the
currency exchange rate in question or (2) derived
from a market which (a) is an ISG member or
affiliate or with which the Exchange has a
comprehensive surveillance sharing agreement and
(b) is the pricing source for components of a
Currency Reference Asset that has previously been
approved by the Commission.
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addition, if the Commodity-Linked or
Currency-Linked Securities are
periodically redeemable, the indicative
value of the subject Commodity-Linked
or Currency-Linked Securities, as the
case may be, must be calculated and
widely disseminated by one or more
major market data vendors on at least a
15-second basis during the time such
securities trade on the Exchange.
The Exchange would commence
delisting or removal proceedings if any
of the initial listing criteria described
above for each of the CommodityLinked or Currency-Linked Securities,
as applicable, is not continuously
maintained. Notwithstanding the
foregoing, an issue of CommodityLinked or Currency-Linked Securities
would not be delisted for a failure to
have in place comprehensive
surveillance sharing agreements if the
Commodity Reference Asset or Currency
Reference Asset, as the case may be, has
at least 10 components, and the
Exchange has comprehensive
surveillance sharing agreements with
respect to at least 90% of the dollar
weight of such Commodity Reference
Asset or Currency Reference Asset. The
Exchange would also commence
delisting or removal proceedings if: (1)
The aggregate market value or the
principal amount of the CommodityLinked or Currency-Linked Securities
publicly held is less than $400,000; (2)
the value of the Commodity Reference
Asset or Currency Reference Asset, as
the case may be, is no longer calculated
or available and a new corresponding
Commodity or Currency Reference Asset
is substituted, unless the new
corresponding Commodity or Currency
Reference Asset meets the requirements
of proposed Section 703.22; or (3) such
other event occurs or condition exists
which, in the opinion of the Exchange,
makes further dealings on the Exchange
inadvisable.
Exchange Rules Applicable to IndexLinked Securities
Index-Linked Securities traded on the
Exchange’s equity trading floor will be
subject to all Exchange rules governing
the trading of equity securities. The
Exchange’s equity margin rules and the
Exchange’s regular trading hours (9:30
a.m. to 4 p.m. Eastern Time) will apply
to transactions in Index-Linked
Securities. However, Index-Linked
Securities traded on the NYSE Bonds
system will be subject to the rules
applicable to such securities traded on
that system.
Information Memorandum
The Exchange represents that it will
prepare and distribute, if appropriate,
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an Information Memorandum that
describes the product to each member
organization highlighting the particular
structure and corresponding risks of an
Index-Linked Security. In particular, the
Memorandum will set forth the
Exchange’s suitability rule that sets
forth certain requirements for member
organizations recommending a
transaction in Index-Linked Securities.
In addition, the Information
Memorandum will note that all of the
Exchange’s equity trading rules will be
applicable to trading in the IndexLinked Securities, except in the case of
Index-Linked Securities traded on the
NYSE Bonds system, in which case the
Information Memorandum will note that
the Index-Linked Securities will be
subject to the trading rules applicable to
securities trading on such system. The
Memorandum will also reference the
member requirements to deliver a
prospectus to each investor purchasing
newly issued Index-Linked Securities
prior to or concurrently with the
confirmation of a transaction.
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Surveillance
The Exchange represents that it will
closely monitor activity in Index-Linked
Securities to identify and deter any
potential improper trading activity in
such securities. Additionally, the
Exchange states that its surveillance
procedures are adequate to properly
monitor the trading of Index-Linked
Securities. Specifically, the Exchange
will rely on its existing surveillance
procedures governing equities, options,
and exchange-traded funds. The
Exchange represents that it has
developed procedures to closely
monitor activity in Index-Linked
Securities and the Underlying Indexes
and their components to identify and
deter potential improper trading
activity. To the extent applicable, the
Exchange will be able to obtain trading
and beneficial holder information from
the primary trading markets for the
components of the Underlying Indexes
in relation to Index-Linked Securities,
either pursuant to bilateral information
sharing agreements with those markets
or because those markets are full or
affiliate members of ISG.
Firewall Procedures
For Index-Linked Securities where the
Underlying Index is maintained by a
broker-dealer, the broker-dealer will be
required to erect a ‘‘firewall’’ around the
personnel responsible for the
maintenance of the Underlying Index or
who have access to information
concerning changes and adjustments to
the Underlying Index, and the
Underlying Index will be calculated by
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a third party who is not a broker-dealer.
Any advisory committee, supervisory
board, or similar entity that advises an
Index Licensor or Administrator (each
as defined in NYSE Rule 1100,
Supplementary Material .10) or that
makes decisions regarding the
Underlying Index or portfolio
composition, methodology, and related
matters would be required to implement
and maintain, or be subject to,
procedures designed to prevent the use
and dissemination of material, nonpublic information regarding the
applicable Underlying Index or
portfolio.21
Trading Halts
In the case of Commodity-Linked or
Currency-Linked Securities, if the
indicative value or the Commodity
Reference Asset value or Currency
Reference Asset value, as the case may
be, applicable to a corresponding series
of such securities is not being
disseminated as required, or, in the case
of Equity Index-Linked Securities, if the
value of the Underlying Index is not
being disseminated as required, the
Exchange may halt trading during the
day on which such interruption first
occurs. If such interruption persists past
the trading day in which it occurred, the
Exchange will halt trading no later than
the beginning of the trading day
following the interruption.
III. Discussion and Commission’s
Findings
After careful consideration, 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 national securities
exchange.22 In particular, the
Commission finds that the proposed
rule change is consistent with the
requirements of Section 6(b)(5) of the
Act,23 which requires, among other
things, that the Exchange’s rules be
designed to promote just and equitable
principles of trade, to foster cooperation
21 The Exchange states that NYSE Rules 1300B(b)
and Rule 1301B provide for certain conflict-ofinterest restrictions on specialist firms transacting
in components of a Commodity Reference Asset, or
any derivative instrument thereon, with respect to
any issue of Commodity-Linked Securities.
Similarly, a proposed rule change to NYSE Rules
1300A and 1301A seeks to impose similar
restrictions on specialist firms for any issue of
Currency-Linked Securities. See Securities
Exchange Act Release No. 55222 (February 1, 2007),
72 FR 6021 (February 8, 2007) (SR–NYSE–2006–
68).
22 In approving this proposed rule change, the
Commission notes that it has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
23 23 15 U.S.C. 78f(b)(5).
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and coordination with persons engaged
in regulating, clearing, settling,
processing information with respect to,
and facilitating transactions in
securities, to remove impediments to
and perfect the mechanism of a free and
open market and a national market
system and, in general, to protect
investors and the public interest.
A. Generic Listing Standards for IndexLinked Securities
To list and trade Index-Linked
Securities, the Exchange currently must
file a proposed rule change with the
Commission pursuant to Section
19(b)(1) of the Act 24 and Rule 19b–4
thereunder.25 However, Rule 19b–4(e)
provides that the listing and trading of
a new derivative securities product by a
SRO will not be deemed a proposed rule
change pursuant to Rule 19b–4(c)(1) if
the Commission has approved, pursuant
to Section 19(b) of the Act, the SRO’s
trading rules, procedures, and listing
standards for the product class that
would include the new derivative
securities product, and the SRO has a
surveillance program for the product
class. The Exchange’s proposed rules for
the listing and trading of Index-Linked
Securities pursuant to Rule 19b–4(e)
fulfill these requirements.
The Exchange’s ability to rely on Rule
19b–4(e) to list and trade Index-Linked
Securities that meet the requirements of
proposed Section 703.22 of the Manual
should reduce the time frame for
bringing these securities to the market
and thereby reduce the burdens on
issuers and other market participants,
while also promoting competition and
making Index-Linked Securities
available to investors more quickly.
The Commission has previously
approved generic listing standards
pursuant to Rule 19b–4(e) for IndexLinked Securities based on indexes that
consist of domestic, and to a certain
extent, foreign, equity securities.26 The
Commission has also previously
approved the listing and trading on the
Exchange of debt securities linked to the
performance of a variety of commodities
24 15
U.S.C. 78s(b)(1).
17 CFR 240.19b–4.
26 See, e.g., Securities Exchange Act Release No.
54167 (July 18, 2006), 71 FR 42145 (July 25, 2006)
(SR–NASDAQ–2006–002) (approving Rule 4420(m)
of the NASDAQ Stock Market LLC); Securities
Exchange Act Release No. 52204 (August 3, 2005),
70 FR 46559 (August 10, 2005) (SR–PCX–2005–63)
(approving generic listing standards for indexlinked securities for the Pacific Exchange, Inc., n/
k/a NYSE Arca, Inc.); and Securities Exchange Act
Release No. 51563 (April 15, 2005), 70 FR 21257
(April 25, 2005) (SR–Amex–2005–001) (approving
Section 107(D) of the American Stock Exchange
LLC Company Guide).
25 25
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Federal Register / Vol. 72, No. 87 / Monday, May 7, 2007 / Notices
and commodity indexes 27 and
derivative products based on
currencies.28 In approving these
securities for Exchange trading, the
Commission considered applicable
Exchange rules that govern their trading.
The Commission believes that generic
listing standards for Index-Linked
Securities should fulfill the intended
objective of Rule 19b–4(e) and allow
Index-Linked Securities that satisfy the
proposed generic listing standards to
commence trading without the need for
public comment and Commission
approval.29
pwalker on PROD1PC71 with NOTICES
B. Listing and Trading Index-Linked
Securities
Taken together, the Commission finds
that the NYSE proposal contains
adequate rules and procedures to govern
the listing and trading of Index-Linked
Securities listed pursuant to Rule 19b–
4(e) on the Exchange. All Index-Linked
Security products listed under the
proposed generic standards will be
subject to the full panoply of NYSE
rules and procedures that currently
govern the trading of equity securities
on the Exchange.
As set forth more fully above, NYSE
has proposed size, earnings, and
minimum tangible net worth
27 See, e.g., Securities Exchange Release No.
55548 (March 28, 2007), 72 FR 16392 (April 4,
2007) (SR–NYSE–2006–71) (approving a proposal to
list and trade notes linked to the performance of
sub-indices of the Dow Jones-AIG Commodity
Index); Securities Exchange Release No. 54731
(November 9, 2006), 71 FR 66814 (November 16,
2006) (SR–NYSE–2006–54) (approving the listing
and trading of two series of commodity-linked
securities); Securities Exchange Release No. 54177
(July 19, 2006), 71 FR 42700 (July 27, 2006) (SR–
NYSE–2006–19) (approving the listing and trading
of index-linked notes linked to the performance of
the Goldman Sachs Crude Oil Total Return Index);
Securities Exchange Release No. 53849 (May 22,
2006), 71 FR 30706 (May 30, 2006) (SR–NYSE–
2006–20) (approving the listing and trading of
index-linked securities linked to the performance of
the GSCI Total Return Index); and Securities
Exchange Release No. 53876 (May 25, 2006), 71 FR
32158 (June 2, 2006) (SR–NYSE–2006–16)
(approving the listing and trading of index-linked
securities linked to the performance of the Dow
Jones-AIG Commodity Index Total Return).
28 See, e.g., Securities Exchange Act Release No.
55268 (February 9, 2007), 72 FR 7793 (February 20,
2007) (SR–NYSE–2007–03) (approving the listing
and trading of Currency Trust Shares relating to the
Japanese Yen); Securities Exchange Act Release No.
54020 (June 20, 2006), 71 FR 36579 (June 27, 2006)
(SR–NYSE–2006–35) (approving the listing and
trading of six Currency Trust Shares); and
Securities Exchange Act Release No. 52843
(November 28, 2005), 70 FR 72486 (December 5,
2005) (SR–NYSE–2005–65) (approving the listing
and trading of Euro Shares).
29 The Commission notes that the failure of a
particular product or index to comply with the
proposed generic listing standards under Rule 19b–
4(e), however, would not preclude the Exchange
from submitting a separate filing pursuant to
Section 19(b)(2), requesting Commission approval
to list and trade a particular index-linked product.
VerDate Aug<31>2005
18:36 May 04, 2007
Jkt 211001
requirements for each Index-Linked
Security issuer, as well as minimum
distribution and holder, principal
amount/market value, and minimum
term thresholds for each issuance of
Index-Linked Securities. The
Exchange’s proposed listing criteria
include minimum market capitalization,
monthly trading volume, and relative
weighting requirements for each Equity
Index-Linked Security and the
components underlying each such
security. For Commodity-Linked and
Currency-Linked Securities, the assets
(or their derivatives) to which they are
linked must either have been reviewed
and approved for trading by the
Commission or their pricing information
must be derived from certain required
sources.30 These requirements are
designed to ensure that the trading
markets for the Underlying Index
components are adequately capitalized
and sufficiently liquid, and that, in the
case of Equity Index-Linked Securities,
no one component dominates the
Underlying Index. The Commission
believes that these requirements should
minimize the potential for
manipulation.
The Commission also finds that, in
the case of Commodity-Linked and
Currency-Linked Securities with at least
10 components, the requirement that at
least 90% of the dollar weight of the
corresponding Commodity Reference
Asset or Currency Reference Asset, as
the case may be, must have
comprehensive surveillance sharing
agreements with the Exchange should
permit the Exchange to identify
potential trading and other violations of
its rules. In the case of Equity IndexLinked Securities, each component
security (other than foreign country
securities and ADRs) must be issued by
a reporting company under the Act,
listed on a national securities exchange,
and be an ‘‘NMS stock,’’ as such term is
defined in Rule 600 of Regulation
NMS.31 The Commission believes that
such a requirement will contribute to
the transparency of the Underlying
Index. Alternatively, such component
securities may also be foreign country
securities, including foreign country
securities underlying ADRs, so long as
the foreign country securities having
their primary trading market on foreign
markets that are not ISG members or
parties to comprehensive surveillance
agreements with the Exchange do not, in
the aggregate, represent more than 20
percent of the dollar weight of the
Underlying Index. The Commission also
believes that, with respect to Equity
30 See
31 17
PO 00000
supra note 20 and accompanying text.
CFR 240.600(b)(47).
Frm 00093
Fmt 4703
Sfmt 4703
Index-Linked Securities, the
requirement that at least 90 percent of
the component securities, by dollar
weight, and 80 percent of the total
number of component securities, be
eligible individually for options trading
should prevent an Index-Linked
Security from being a vehicle for trading
options on a security not otherwise
options eligible. The Commission also
notes that, by requiring pricing
information for the relevant Underlying
Index or Indexes to be readily available,
the proposed listing standards of
Section 703.22 of the Manual should
help ensure a fair and orderly market for
Index-Linked Securities listed and
traded pursuant to Rule 19b–4(e).
The Exchange has also developed
delisting criteria that will permit it to
suspend trading of an Index-Linked
Security in circumstances that make
further dealings in the product
inadvisable. The Commission believes
that the delisting criteria should help
ensure that a minimum level of liquidity
exists for each Index-Linked Security to
allow for the maintenance of fair and
orderly markets. Also, in the event that
the value of the Underlying Index or, in
the case of Commodity-Linked and
Currency-Linked Securities that are
periodically redeemable, the indicative
value, is no longer calculated and
widely disseminated on at least a 15second basis, the Exchange may halt
trading during the day on which the
interruption first occurs; however, if the
interruption persists past the trading
day on which it occurred, the Exchange
will halt trading no later than the
beginning of the trading day following
the interruption and will commence
delisting proceedings.
C. Surveillance
The Commission notes that any
Index-Linked Securities approved for
listing and trading would be subject to
the Exchange’s existing surveillance
procedures governing equities, options,
and exchange-traded funds, as well as
procedures the Exchange represents it
has developed to closely monitor
activity in Index-Linked Securities and
the Underlying Indexes and their
components. The Exchange has
represented that its surveillance
procedures are adequate to properly
monitor the trading of Index-Linked
Securities listed pursuant to these
proposed generic listing standards. In
addition, the Commission notes that the
Exchange has represented that it will be
able to obtain trading and beneficial
holder information from the primary
trading markets for the components of
the Underlying Indexes in relation to
Index-Linked Securities, either pursuant
E:\FR\FM\07MYN1.SGM
07MYN1
Federal Register / Vol. 72, No. 87 / Monday, May 7, 2007 / Notices
to bilateral information sharing
agreements with those markets or
because those markets are full members
or affiliate members of the ISG. In
particular, the Exchange has represented
that it will implement adequate
comprehensive surveillance sharing
agreements for non-U.S. components, as
applicable.
D. Information Memorandum
The Exchange has represented that it
will distribute, as appropriate, an
Information Memorandum to members
describing the product, the structure of
the product, and the corresponding risks
of the Index-Linked Security. In
addition, the Information Memorandum
will set forth the Exchange’s suitability
requirements with respect to
recommendations in transactions in
Index-Linked Securities to customers
and the prospectus delivery
requirements. The Memorandum will
also identify and describe the
Exchange’s trading rules governing the
Index-Linked Securities.
pwalker on PROD1PC71 with NOTICES
E. Firewall Procedures
The Exchange has further represented
that, if the Underlying Index is
maintained by a broker-dealer, such
broker-dealer will establish a ‘‘firewall’’
around personnel responsible for the
maintenance of the Underlying Index.
As an added measure, a third-party who
is not a broker-dealer will calculate the
Underlying Index. In addition, the
Exchange has stated that any person,
committee, board, or similar entity that
advises the Index Licensor or
Administrator (each as defined in NYSE
Rule 1100, Supplementary Material .10)
or that makes decisions regarding the
composition and methodology of the
Underlying Index, will be subject to
policies and procedures designed to
prevent the use and dissemination of
material, non-public information. With
respect to trading on NYSE, the
Exchange has stated that, with respect to
any issue of Index-Linked Securities,
specialists will be restricted from
making markets in and trading
components of the Underlying
Securities or any derivative instruments
thereof.32
F. Acceleration
The Commission finds good cause for
approving the proposed rule change, as
modified by Amendments No. 1, 2, and
3 thereto, before the 30th day after the
date of publication of notice of filing
thereof in the Federal Register. The
Exchange requested accelerated
approval of the proposal to facilitate the
prompt listing and trading of IndexLinked Securities based on indexes or
portfolios meeting the specified criteria
of proposed Section 703.22 of the
Manual. The Commission notes that the
Exchange’s proposed generic listing
standards are based, in part, on
previously approved listing standards
for Index-Linked Securities based on an
Underlying Index made up of equity
securities.33 The Commission also notes
that it has previously approved the
listing and trading of derivative
products based on commodities and
currencies.34 The Commission believes
that accelerated approval of the
proposed rule change should expedite
the listing and trading of additional
Index-Linked Securities, subject to the
standards discussed herein, to the
benefit of the investing public.
Therefore, the Commission finds good
cause, consistent with Section 19(b)(2)
of the Act,35 to approve the proposed
rule change on an accelerated basis.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether Amendment No. 3 is
consistent with the Act. Comments may
be submitted by any of the following
methods:
supra note 21.
VerDate Aug<31>2005
18:36 May 04, 2007
Jkt 211001
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 the filing also will 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–NYSE–2007–27 and should
be submitted on or before May 29, 2007.
V. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,36 that the
proposed rule change (SR–NYSE–2007–
27), as modified by Amendments No. 1,
2, and 3, is hereby approved on an
accelerated basis.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.37
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–8600 Filed 5–4–07; 8:45 am]
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–NYSE–2007–27 on the
subject line.
BILLING CODE 8010–01–P
Paper Comments
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
Station Place, 100 F Street, NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–NYSE–2007–27. 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
AGENCY:
supra note 26.
supra notes 27–28.
35 15 U.S.C. 78s(b)(2).
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration #10854]
Iowa Disaster #IA–00007 Declaration of
Economic Injury
U.S. Small Business
Administration.
ACTION: Notice.
SUMMARY: This is a notice of an
Economic Injury Disaster Loan (EIDL)
declaration for the State of Iowa, dated
04/27/2007.
Incident: Winter Storms.
Incident Period: 02/23/2007 through
03/02/2007.
EFFECTIVE DATE: 04/27/2007.
EIDL Loan Application Deadline Date:
01/28/2008.
ADDRESSES: Submit completed loan
applications to: U.S. Small Business
Administration, Processing And
Disbursement Center, 14925 Kingsport
Road, Fort Worth, TX 76155.
FOR FURTHER INFORMATION CONTACT: A.
Escobar, Office of Disaster Assistance,
U.S. Small Business Administration,
33 See
34 See
32 See
25829
PO 00000
Frm 00094
Fmt 4703
36 15
37 17
Sfmt 4703
E:\FR\FM\07MYN1.SGM
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
07MYN1
Agencies
[Federal Register Volume 72, Number 87 (Monday, May 7, 2007)]
[Notices]
[Pages 25824-25829]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-8600]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-55687; File No. SR-NYSE-2007-27]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing of Amendment No. 3 to Proposed Rule Change and Order
Granting Accelerated Approval to Proposed Rule Change, as Modified by
Amendments No. 1, 2, and 3 Thereto, To Adopt Generic Listing Standards
for Index-Linked Securities
May 1, 2007.
I. Introduction
On March 9, 2007, the New York Stock Exchange LLC (``NYSE'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change to adopt generic listing standards for equity
index-linked securities (``Equity Index-Linked Securities''),
commodity-linked securities (``Commodity-Linked Securities''), and
currency-linked securities (``Currency-Linked Securities'' and,
together with Equity Index-Linked Securities and Commodity-Linked
Securities, ``Index-Linked Securities''). On April 4, 2007, Exchange
filed Amendment No. 1 to the proposed rule change. On April 5, 2007,
the Exchange filed Amendment No. 2 to the proposed rule change. The
proposed rule change, as amended, was published for comment in the
Federal Register on
[[Page 25825]]
April 13, 2007 for a 15-day comment period.\3\ The Commission received
no comments on the proposal. On April 26, 2007, the Exchange filed
Amendment No. 3 to the proposed rule change.\4\ This order approves the
proposed rule change, as modified by Amendments No. 1, 2, and 3, on an
accelerated basis.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 55600 (April 9,
2007), 72 FR 18712 (``Notice'').
\4\ In Amendment No. 3 to the proposed rule change, the Exchange
clarified the eligibility criteria for component securities
comprising the Underlying Index (as defined herein) for Equity
Index-Linked Securities, broadened the requirement for surveillance
procedures, including adequate comprehensive surveillance sharing
agreements, for all Index-Linked Securities, and represented that
Exchange trading rules governing the Index-Linked Securities would
be identified and disclosed in the Information Memorandum.
---------------------------------------------------------------------------
II. Description of the Proposal
As explained more fully in the Notice, the Exchange proposes to add
new Section 703.22 to its Listed Company Manual (the ``Manual'') to
provide generic listing standards to permit the listing and trading of
Index-Linked Securities pursuant to Rule 19b-4(e) under the Act.\5\
This proposal will enable the Exchange to list and trade Index-Linked
Securities pursuant to Rule 19b-4(e) of the Act if each of the
conditions set forth in proposed Section 703.22 of the Manual is
satisfied. Rule 19b-4(e) provides that the listing and trading of a new
derivative securities product by a self-regulatory organization
(``SRO'') shall not be deemed a proposed rule change, pursuant to
paragraph (c)(1) of Rule 19b-4, if the Commission has approved,
pursuant to Section 19(b) of the Act, the SRO's trading rules,
procedures, and listing standards for the product class that would
include the new derivatives securities product, and the SRO has a
surveillance program for the product class.\6\
---------------------------------------------------------------------------
\5\ See 17 CFR 240.19b-4(e)(1).
\6\ When relying on Rule 19b-4(e), the SRO must submit Form 19b-
4(e) to the Commission within five business days after the SRO
begins trading the new derivative securities products. See
Securities Exchange Act Release No. 40761 (December 8, 1998), 63 FR
70952 (December 22, 1998).
---------------------------------------------------------------------------
Index-Linked Securities
Index-Linked Securities are designed for investors who desire to
participate in a specific market segment by providing exposure to one
or more identifiable underlying securities, commodities, currencies,
derivative instruments, or market indexes of the foregoing (the
``Underlying Index'' or ``Underlying Indexes''). Index-Linked
Securities are the non-convertible debt of an issuer that have a term
of at least one year, but not greater than thirty years, and are tied
to the performance of the Underlying Index. Index-Linked Securities may
or may not make interest payments based on dividends or other cash
distributions paid on the securities comprising the Underlying Index or
Indexes to the holder during their term. Despite the fact that Index-
Linked Securities are linked to an Underlying Index, each will trade as
a single, exchange-listed security.
The proposed generic listing standards will not be applicable to
Index-Linked Securities with respect to which the payment at maturity
is based on a multiple of the negative performance of an Underlying
Index or Indexes. An Index-Linked Security may or may not provide
``principal protection,'' i.e., a minimum guaranteed amount to be
repaid.\7\ In addition, Index-Linked Securities do not give the holder
any right to receive a portfolio component, dividend payments, or any
other ownership right or interest in the portfolio or underlying
components comprising the Underlying Index. Pursuant to proposed
Section 703.22 of the Manual, the current or composite value of the
Underlying Index will be widely disseminated at least every 15 seconds
during the trading day.
---------------------------------------------------------------------------
\7\ Some Index-Linked Securities may provide for ``contingent''
protection of the principal amount, whereby the principal protection
may disappear if the Underlying Index at any point in time during
the life of such security reaches a certain predetermined level.
---------------------------------------------------------------------------
Proposed General Listing Criteria for Index-Linked Securities
The Exchange will apply the following requirements to all issuers
of Index-Linked Securities:
If the issuer is a NYSE-listed company, the entity must be
a company in good standing (i.e., meets NYSE's applicable continued
listing criteria); if the issuer is an affiliate of a NYSE-listed
company, the NYSE-listed company must be a company in good standing; if
not listed, the issuer must meet the size and earnings requirements of
Sections 102.01-102.03 or Sections 103.01-103.05 of the Manual.
Sovereign issuers will be evaluated on a case-by-case basis.
The issuer will be expected to have a minimum tangible net
worth \8\ of $250,000,000. In the alternative, the issuer will be
expected: (i) To have a minimum tangible net worth of $150,000,000 and
(ii) not to issue Index-Linked Securities, the original issue price of
which, combined with all the issuer's other Index-Linked Securities
listed on a national securities exchange, exceeds 25% of the issuer's
tangible net worth at the time of issuance.\9\
---------------------------------------------------------------------------
\8\ ``Tangible net worth'' is defined as total assets, less
intangible assets and total liabilities. Intangibles include non-
material benefits such as goodwill, patents, copyrights, and
trademarks.
\9\ If the Index-Linked Securities are fully and unconditionally
guaranteed by an affiliate of the issuer, the Exchange will rely on
such affiliate's tangible net worth for purposes of these
requirements and will include in its calculation all Index-Linked
Securities that are fully and unconditionally guaranteed by such
affiliate.
---------------------------------------------------------------------------
The issuer must be in compliance with Rule 10A-3 under the
Act.\10\
---------------------------------------------------------------------------
\10\ See 17 CFR 240.10A-3 (setting forth the listing standards
relating to audit committees).
---------------------------------------------------------------------------
In addition, the Exchange will apply the following requirements to
each issue of Index-Linked Securities:
The issue must have a minimum public distribution of at
least 1 million units and a minimum of 400 holders, except if traded on
the NYSE Bonds system and the applicable NYSE Bonds listing and trading
standards are satisfied; \11\
---------------------------------------------------------------------------
\11\ See NYSE Rule 86 (establishing rules and standards with
respect to the Exchange's electronic system, known as ``NYSE
Bonds,'' for receiving, processing, executing, and reporting bids,
offers, and executions in bonds). In addition, this requirement will
not be applicable if the issue provides for the redemption of Index-
Linked Securities at the option of the holders on at least a weekly
basis. See Notice, supra note 3, 72 FR at 18713 (describing the
purpose of weekly redemption rights of Index-Linked Securities and
the rationale behind this exception to the minimum holder
requirement).
---------------------------------------------------------------------------
The issue must have a principal amount/aggregate market
value of not less than $4 million;
The issue must have a term of at least one year, but not
greater than thirty years;
The issue must be the non-convertible debt of the issuer;
and
The issue must not base its payment at maturity on a
multiple of the negative performance of an Underlying Index or Indexes,
although the payment at maturity may or may not provide for a multiple
of the positive performance of an Underlying Index or Indexes.
Listing Standards for Equity Index-Linked Securities
Equity Index-Linked Securities would be subject to the criteria in
proposed Section 703.22(B)(I) of the Manual for initial and continued
listing. For an Underlying Index to be appropriate for the initial
listing of an Equity Index-Linked Security, such Underlying Index must
comprise at least ten component securities of different issuers. The
Underlying Index must also either: (i) Be approved for the trading of
options or other derivative securities by the Commission under Section
19(b)(2) of the Act \12\ and rules thereunder, and the conditions set
forth in the Commission's approval order, including comprehensive
surveillance sharing
[[Page 25826]]
agreements for non-U.S. stocks, continue to be satisfied, or (ii)
satisfy certain eligibility standards, rebalancing obligations, and
empirical requirements based on market value, trading volume, and
dollar weight percentages.\13\ In particular, all component securities
comprising the Underlying Index for Equity Index-Linked Securities must
either be: (A) securities (other than foreign country securities and
American Depository Receipts (``ADRs''), that are (1) issued by an Act
reporting company which is listed on a national securities exchange and
(2) NMS stocks, as defined in Rule 600 of Regulation NMS,\14\ or (B)
foreign country securities or ADRs, provided that foreign country
securities or foreign country securities underlying ADRs having their
primary trading market outside the United States on foreign trading
markets that are not members of the Intermarket Surveillance Group
(``ISG'') or parties to comprehensive surveillance sharing agreements
with the Exchange will not, in the aggregate, represent more than 20%
of the dollar weight of the Underlying Index.
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78s(b)(2).
\13\ See Notice, supra note 3, 72 FR at 18713-18714 (providing,
among others, detailed eligibility requirements of the component
securities comprising the Underlying Index based on minimum market
value, trading volume, and certain dollar weight percentages).
\14\ See 17 CFR 242.600(b)(47).
---------------------------------------------------------------------------
In connection with an Equity Index-Linked Security, the Exchange
would commence delisting or removal proceedings if any of the standards
set forth in the initial eligibility criteria are not continuously
maintained \15\ or an Underlying Index fails to satisfy the maintenance
standards or conditions for such Underlying Index or Indexes as set
forth by the Commission in its order under Section 19(b)(2) of the Act
\16\ approving the Underlying Index for the trading of options or other
derivatives. The Exchange would also commence delisting or removal
proceedings of an Equity Index-Linked Security if: (1) The aggregate
market value or the principal amount of the Equity Index-Linked
Securities publicly held is less than $400,000; (2) the value of the
Underlying Index or composite value of the Underlying Indexes is no
longer calculated and widely disseminated on at least a 15-second basis
during the time the Equity Index-Linked Securities trade on the
Exchange; or (3) such other event occurs or condition exists which, in
the opinion of the Exchange, makes further dealings on the Exchange
inadvisable.
---------------------------------------------------------------------------
\15\ Proposed Section 703.22 of the Manual provides for certain
exceptions to the continued listing criteria of Equity Index-Linked
Securities based on certain numerical requirements and percentages
with respect to the component securities comprising the Underlying
Index. See Notice, supra note 3, 72 FR at 18714.
\16\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------
Listing Standards for Commodity-Linked and Currency-Linked Securities
Commodity-Linked and Currency-Linked Securities would be subject to
the criteria in proposed Sections 703.22(B)(II) and 703.22(B)(III) of
the Manual, respectively, for initial and continued listing. Each issue
of Commodity-Linked or Currency-Linked Securities must meet either of
the following initial listing standards:
The Commodity Reference Asset \17\ or Currency Reference
Asset,\18\ as the case may be, to which the corresponding security is
linked shall have been reviewed and approved for the trading of
Commodity Trust Shares (in the case of Commodity-Linked Securities) or
Currency Trust Shares (in the case of Currency-Linked Securities),
options, or other derivatives by the Commission under Section 19(b)(2)
of the Act \19\ and rules thereunder, and the conditions set forth in
the Commission's approval order, including with respect to
comprehensive surveillance sharing agreements, continue to be
satisfied; or
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\17\ Commodity Reference Asset is defined as one or more
physical commodities or commodity futures, options, or other
commodity derivatives, Commodity Trust Shares (as defined in NYSE
Rule 1300B), or a basket or index of any of the foregoing.
\18\ Currency Reference Asset is defined as one or more
currencies, or options, currency futures, or other currency
derivatives, Currency Trust Shares (as defined in NYSE Rule 1300A),
or a basket or index of any of the foregoing.
\19\ 15 U.S.C. 78s(b)(2).
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The pricing information for each component of a Commodity
Reference Asset or Currency Reference Asset, as the case may be, must
be derived from certain required sources.\20\
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\20\ In the case of a Commodity Reference Asset, the pricing
information for each component thereof must be derived from a market
which is an ISG member or affiliate or with which the Exchange has a
comprehensive surveillance sharing agreement. In the case of a
Currency Reference Asset, the pricing information for each component
thereof must be either (1) the generally accepted spot price for the
currency exchange rate in question or (2) derived from a market
which (a) is an ISG member or affiliate or with which the Exchange
has a comprehensive surveillance sharing agreement and (b) is the
pricing source for components of a Currency Reference Asset that has
previously been approved by the Commission.
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With respect to each of the Commodity-Linked and Currency-Linked
Securities, the value of the Commodity Reference Asset or Currency
Reference Asset, as the case may be, must be calculated and widely
disseminated on at least a 15-second basis during the time the
corresponding Commodity-Linked or Currency-Linked Securities trade on
the Exchange. In addition, if the Commodity-Linked or Currency-Linked
Securities are periodically redeemable, the indicative value of the
subject Commodity-Linked or Currency-Linked Securities, as the case may
be, must be calculated and widely disseminated by one or more major
market data vendors on at least a 15-second basis during the time such
securities trade on the Exchange.
The Exchange would commence delisting or removal proceedings if any
of the initial listing criteria described above for each of the
Commodity-Linked or Currency-Linked Securities, as applicable, is not
continuously maintained. Notwithstanding the foregoing, an issue of
Commodity-Linked or Currency-Linked Securities would not be delisted
for a failure to have in place comprehensive surveillance sharing
agreements if the Commodity Reference Asset or Currency Reference
Asset, as the case may be, has at least 10 components, and the Exchange
has comprehensive surveillance sharing agreements with respect to at
least 90% of the dollar weight of such Commodity Reference Asset or
Currency Reference Asset. The Exchange would also commence delisting or
removal proceedings if: (1) The aggregate market value or the principal
amount of the Commodity-Linked or Currency-Linked Securities publicly
held is less than $400,000; (2) the value of the Commodity Reference
Asset or Currency Reference Asset, as the case may be, is no longer
calculated or available and a new corresponding Commodity or Currency
Reference Asset is substituted, unless the new corresponding Commodity
or Currency Reference Asset meets the requirements of proposed Section
703.22; or (3) such other event occurs or condition exists which, in
the opinion of the Exchange, makes further dealings on the Exchange
inadvisable.
Exchange Rules Applicable to Index-Linked Securities
Index-Linked Securities traded on the Exchange's equity trading
floor will be subject to all Exchange rules governing the trading of
equity securities. The Exchange's equity margin rules and the
Exchange's regular trading hours (9:30 a.m. to 4 p.m. Eastern Time)
will apply to transactions in Index-Linked Securities. However, Index-
Linked Securities traded on the NYSE Bonds system will be subject to
the rules applicable to such securities traded on that system.
Information Memorandum
The Exchange represents that it will prepare and distribute, if
appropriate,
[[Page 25827]]
an Information Memorandum that describes the product to each member
organization highlighting the particular structure and corresponding
risks of an Index-Linked Security. In particular, the Memorandum will
set forth the Exchange's suitability rule that sets forth certain
requirements for member organizations recommending a transaction in
Index-Linked Securities. In addition, the Information Memorandum will
note that all of the Exchange's equity trading rules will be applicable
to trading in the Index-Linked Securities, except in the case of Index-
Linked Securities traded on the NYSE Bonds system, in which case the
Information Memorandum will note that the Index-Linked Securities will
be subject to the trading rules applicable to securities trading on
such system. The Memorandum will also reference the member requirements
to deliver a prospectus to each investor purchasing newly issued Index-
Linked Securities prior to or concurrently with the confirmation of a
transaction.
Surveillance
The Exchange represents that it will closely monitor activity in
Index-Linked Securities to identify and deter any potential improper
trading activity in such securities. Additionally, the Exchange states
that its surveillance procedures are adequate to properly monitor the
trading of Index-Linked Securities. Specifically, the Exchange will
rely on its existing surveillance procedures governing equities,
options, and exchange-traded funds. The Exchange represents that it has
developed procedures to closely monitor activity in Index-Linked
Securities and the Underlying Indexes and their components to identify
and deter potential improper trading activity. To the extent
applicable, the Exchange will be able to obtain trading and beneficial
holder information from the primary trading markets for the components
of the Underlying Indexes in relation to Index-Linked Securities,
either pursuant to bilateral information sharing agreements with those
markets or because those markets are full or affiliate members of ISG.
Firewall Procedures
For Index-Linked Securities where the Underlying Index is
maintained by a broker-dealer, the broker-dealer will be required to
erect a ``firewall'' around the personnel responsible for the
maintenance of the Underlying Index or who have access to information
concerning changes and adjustments to the Underlying Index, and the
Underlying Index will be calculated by a third party who is not a
broker-dealer. Any advisory committee, supervisory board, or similar
entity that advises an Index Licensor or Administrator (each as defined
in NYSE Rule 1100, Supplementary Material .10) or that makes decisions
regarding the Underlying Index or portfolio composition, methodology,
and related matters would be required to implement and maintain, or be
subject to, procedures designed to prevent the use and dissemination of
material, non-public information regarding the applicable Underlying
Index or portfolio.\21\
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\21\ The Exchange states that NYSE Rules 1300B(b) and Rule 1301B
provide for certain conflict-of-interest restrictions on specialist
firms transacting in components of a Commodity Reference Asset, or
any derivative instrument thereon, with respect to any issue of
Commodity-Linked Securities. Similarly, a proposed rule change to
NYSE Rules 1300A and 1301A seeks to impose similar restrictions on
specialist firms for any issue of Currency-Linked Securities. See
Securities Exchange Act Release No. 55222 (February 1, 2007), 72 FR
6021 (February 8, 2007) (SR-NYSE-2006-68).
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Trading Halts
In the case of Commodity-Linked or Currency-Linked Securities, if
the indicative value or the Commodity Reference Asset value or Currency
Reference Asset value, as the case may be, applicable to a
corresponding series of such securities is not being disseminated as
required, or, in the case of Equity Index-Linked Securities, if the
value of the Underlying Index is not being disseminated as required,
the Exchange may halt trading during the day on which such interruption
first occurs. If such interruption persists past the trading day in
which it occurred, the Exchange will halt trading no later than the
beginning of the trading day following the interruption.
III. Discussion and Commission's Findings
After careful consideration, 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 national
securities exchange.\22\ In particular, the Commission finds that the
proposed rule change is consistent with the requirements of Section
6(b)(5) of the Act,\23\ which requires, among other things, that the
Exchange's rules be designed to promote just and equitable principles
of trade, to foster cooperation and coordination with persons engaged
in regulating, clearing, settling, processing information with respect
to, and facilitating transactions in securities, to remove impediments
to and perfect the mechanism of a free and open market and a national
market system and, in general, to protect investors and the public
interest.
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\22\ In approving this proposed rule change, the Commission
notes that it has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
\23\ 23 15 U.S.C. 78f(b)(5).
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A. Generic Listing Standards for Index-Linked Securities
To list and trade Index-Linked Securities, the Exchange currently
must file a proposed rule change with the Commission pursuant to
Section 19(b)(1) of the Act \24\ and Rule 19b-4 thereunder.\25\
However, Rule 19b-4(e) provides that the listing and trading of a new
derivative securities product by a SRO will not be deemed a proposed
rule change pursuant to Rule 19b-4(c)(1) if the Commission has
approved, pursuant to Section 19(b) of the Act, the SRO's trading
rules, procedures, and listing standards for the product class that
would include the new derivative securities product, and the SRO has a
surveillance program for the product class. The Exchange's proposed
rules for the listing and trading of Index-Linked Securities pursuant
to Rule 19b-4(e) fulfill these requirements.
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\24\ 15 U.S.C. 78s(b)(1).
\25\ 25 17 CFR 240.19b-4.
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The Exchange's ability to rely on Rule 19b-4(e) to list and trade
Index-Linked Securities that meet the requirements of proposed Section
703.22 of the Manual should reduce the time frame for bringing these
securities to the market and thereby reduce the burdens on issuers and
other market participants, while also promoting competition and making
Index-Linked Securities available to investors more quickly.
The Commission has previously approved generic listing standards
pursuant to Rule 19b-4(e) for Index-Linked Securities based on indexes
that consist of domestic, and to a certain extent, foreign, equity
securities.\26\ The Commission has also previously approved the listing
and trading on the Exchange of debt securities linked to the
performance of a variety of commodities
[[Page 25828]]
and commodity indexes \27\ and derivative products based on
currencies.\28\ In approving these securities for Exchange trading, the
Commission considered applicable Exchange rules that govern their
trading. The Commission believes that generic listing standards for
Index-Linked Securities should fulfill the intended objective of Rule
19b-4(e) and allow Index-Linked Securities that satisfy the proposed
generic listing standards to commence trading without the need for
public comment and Commission approval.\29\
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\26\ See, e.g., Securities Exchange Act Release No. 54167 (July
18, 2006), 71 FR 42145 (July 25, 2006) (SR-NASDAQ-2006-002)
(approving Rule 4420(m) of the NASDAQ Stock Market LLC); Securities
Exchange Act Release No. 52204 (August 3, 2005), 70 FR 46559 (August
10, 2005) (SR-PCX-2005-63) (approving generic listing standards for
index-linked securities for the Pacific Exchange, Inc., n/k/a NYSE
Arca, Inc.); and Securities Exchange Act Release No. 51563 (April
15, 2005), 70 FR 21257 (April 25, 2005) (SR-Amex-2005-001)
(approving Section 107(D) of the American Stock Exchange LLC Company
Guide).
\27\ See, e.g., Securities Exchange Release No. 55548 (March 28,
2007), 72 FR 16392 (April 4, 2007) (SR-NYSE-2006-71) (approving a
proposal to list and trade notes linked to the performance of sub-
indices of the Dow Jones-AIG Commodity Index); Securities Exchange
Release No. 54731 (November 9, 2006), 71 FR 66814 (November 16,
2006) (SR-NYSE-2006-54) (approving the listing and trading of two
series of commodity-linked securities); Securities Exchange Release
No. 54177 (July 19, 2006), 71 FR 42700 (July 27, 2006) (SR-NYSE-
2006-19) (approving the listing and trading of index-linked notes
linked to the performance of the Goldman Sachs Crude Oil Total
Return Index); Securities Exchange Release No. 53849 (May 22, 2006),
71 FR 30706 (May 30, 2006) (SR-NYSE-2006-20) (approving the listing
and trading of index-linked securities linked to the performance of
the GSCI Total Return Index); and Securities Exchange Release No.
53876 (May 25, 2006), 71 FR 32158 (June 2, 2006) (SR-NYSE-2006-16)
(approving the listing and trading of index-linked securities linked
to the performance of the Dow Jones-AIG Commodity Index Total
Return).
\28\ See, e.g., Securities Exchange Act Release No. 55268
(February 9, 2007), 72 FR 7793 (February 20, 2007) (SR-NYSE-2007-03)
(approving the listing and trading of Currency Trust Shares relating
to the Japanese Yen); Securities Exchange Act Release No. 54020
(June 20, 2006), 71 FR 36579 (June 27, 2006) (SR-NYSE-2006-35)
(approving the listing and trading of six Currency Trust Shares);
and Securities Exchange Act Release No. 52843 (November 28, 2005),
70 FR 72486 (December 5, 2005) (SR-NYSE-2005-65) (approving the
listing and trading of Euro Shares).
\29\ The Commission notes that the failure of a particular
product or index to comply with the proposed generic listing
standards under Rule 19b-4(e), however, would not preclude the
Exchange from submitting a separate filing pursuant to Section
19(b)(2), requesting Commission approval to list and trade a
particular index-linked product.
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B. Listing and Trading Index-Linked Securities
Taken together, the Commission finds that the NYSE proposal
contains adequate rules and procedures to govern the listing and
trading of Index-Linked Securities listed pursuant to Rule 19b-4(e) on
the Exchange. All Index-Linked Security products listed under the
proposed generic standards will be subject to the full panoply of NYSE
rules and procedures that currently govern the trading of equity
securities on the Exchange.
As set forth more fully above, NYSE has proposed size, earnings,
and minimum tangible net worth requirements for each Index-Linked
Security issuer, as well as minimum distribution and holder, principal
amount/market value, and minimum term thresholds for each issuance of
Index-Linked Securities. The Exchange's proposed listing criteria
include minimum market capitalization, monthly trading volume, and
relative weighting requirements for each Equity Index-Linked Security
and the components underlying each such security. For Commodity-Linked
and Currency-Linked Securities, the assets (or their derivatives) to
which they are linked must either have been reviewed and approved for
trading by the Commission or their pricing information must be derived
from certain required sources.\30\ These requirements are designed to
ensure that the trading markets for the Underlying Index components are
adequately capitalized and sufficiently liquid, and that, in the case
of Equity Index-Linked Securities, no one component dominates the
Underlying Index. The Commission believes that these requirements
should minimize the potential for manipulation.
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\30\ See supra note 20 and accompanying text.
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The Commission also finds that, in the case of Commodity-Linked and
Currency-Linked Securities with at least 10 components, the requirement
that at least 90% of the dollar weight of the corresponding Commodity
Reference Asset or Currency Reference Asset, as the case may be, must
have comprehensive surveillance sharing agreements with the Exchange
should permit the Exchange to identify potential trading and other
violations of its rules. In the case of Equity Index-Linked Securities,
each component security (other than foreign country securities and
ADRs) must be issued by a reporting company under the Act, listed on a
national securities exchange, and be an ``NMS stock,'' as such term is
defined in Rule 600 of Regulation NMS.\31\ The Commission believes that
such a requirement will contribute to the transparency of the
Underlying Index. Alternatively, such component securities may also be
foreign country securities, including foreign country securities
underlying ADRs, so long as the foreign country securities having their
primary trading market on foreign markets that are not ISG members or
parties to comprehensive surveillance agreements with the Exchange do
not, in the aggregate, represent more than 20 percent of the dollar
weight of the Underlying Index. The Commission also believes that, with
respect to Equity Index-Linked Securities, the requirement that at
least 90 percent of the component securities, by dollar weight, and 80
percent of the total number of component securities, be eligible
individually for options trading should prevent an Index-Linked
Security from being a vehicle for trading options on a security not
otherwise options eligible. The Commission also notes that, by
requiring pricing information for the relevant Underlying Index or
Indexes to be readily available, the proposed listing standards of
Section 703.22 of the Manual should help ensure a fair and orderly
market for Index-Linked Securities listed and traded pursuant to Rule
19b-4(e).
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\31\ 17 CFR 240.600(b)(47).
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The Exchange has also developed delisting criteria that will permit
it to suspend trading of an Index-Linked Security in circumstances that
make further dealings in the product inadvisable. The Commission
believes that the delisting criteria should help ensure that a minimum
level of liquidity exists for each Index-Linked Security to allow for
the maintenance of fair and orderly markets. Also, in the event that
the value of the Underlying Index or, in the case of Commodity-Linked
and Currency-Linked Securities that are periodically redeemable, the
indicative value, is no longer calculated and widely disseminated on at
least a 15-second basis, the Exchange may halt trading during the day
on which the interruption first occurs; however, if the interruption
persists past the trading day on which it occurred, the Exchange will
halt trading no later than the beginning of the trading day following
the interruption and will commence delisting proceedings.
C. Surveillance
The Commission notes that any Index-Linked Securities approved for
listing and trading would be subject to the Exchange's existing
surveillance procedures governing equities, options, and exchange-
traded funds, as well as procedures the Exchange represents it has
developed to closely monitor activity in Index-Linked Securities and
the Underlying Indexes and their components. The Exchange has
represented that its surveillance procedures are adequate to properly
monitor the trading of Index-Linked Securities listed pursuant to these
proposed generic listing standards. In addition, the Commission notes
that the Exchange has represented that it will be able to obtain
trading and beneficial holder information from the primary trading
markets for the components of the Underlying Indexes in relation to
Index-Linked Securities, either pursuant
[[Page 25829]]
to bilateral information sharing agreements with those markets or
because those markets are full members or affiliate members of the ISG.
In particular, the Exchange has represented that it will implement
adequate comprehensive surveillance sharing agreements for non-U.S.
components, as applicable.
D. Information Memorandum
The Exchange has represented that it will distribute, as
appropriate, an Information Memorandum to members describing the
product, the structure of the product, and the corresponding risks of
the Index-Linked Security. In addition, the Information Memorandum will
set forth the Exchange's suitability requirements with respect to
recommendations in transactions in Index-Linked Securities to customers
and the prospectus delivery requirements. The Memorandum will also
identify and describe the Exchange's trading rules governing the Index-
Linked Securities.
E. Firewall Procedures
The Exchange has further represented that, if the Underlying Index
is maintained by a broker-dealer, such broker-dealer will establish a
``firewall'' around personnel responsible for the maintenance of the
Underlying Index. As an added measure, a third-party who is not a
broker-dealer will calculate the Underlying Index. In addition, the
Exchange has stated that any person, committee, board, or similar
entity that advises the Index Licensor or Administrator (each as
defined in NYSE Rule 1100, Supplementary Material .10) or that makes
decisions regarding the composition and methodology of the Underlying
Index, will be subject to policies and procedures designed to prevent
the use and dissemination of material, non-public information. With
respect to trading on NYSE, the Exchange has stated that, with respect
to any issue of Index-Linked Securities, specialists will be restricted
from making markets in and trading components of the Underlying
Securities or any derivative instruments thereof.\32\
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\32\ See supra note 21.
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F. Acceleration
The Commission finds good cause for approving the proposed rule
change, as modified by Amendments No. 1, 2, and 3 thereto, before the
30th day after the date of publication of notice of filing thereof in
the Federal Register. The Exchange requested accelerated approval of
the proposal to facilitate the prompt listing and trading of Index-
Linked Securities based on indexes or portfolios meeting the specified
criteria of proposed Section 703.22 of the Manual. The Commission notes
that the Exchange's proposed generic listing standards are based, in
part, on previously approved listing standards for Index-Linked
Securities based on an Underlying Index made up of equity
securities.\33\ The Commission also notes that it has previously
approved the listing and trading of derivative products based on
commodities and currencies.\34\ The Commission believes that
accelerated approval of the proposed rule change should expedite the
listing and trading of additional Index-Linked Securities, subject to
the standards discussed herein, to the benefit of the investing public.
Therefore, the Commission finds good cause, consistent with Section
19(b)(2) of the Act,\35\ to approve the proposed rule change on an
accelerated basis.
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\33\ See supra note 26.
\34\ See supra notes 27-28.
\35\ 15 U.S.C. 78s(b)(2).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether Amendment No. 3
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-2007-27 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, Station Place, 100 F
Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSE-2007-27. 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 Room. Copies of the filing
also will 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-NYSE-2007-27 and should be submitted on or before May 29, 2007.
V. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\36\ that the proposed rule change (SR-NYSE-2007-27), as modified
by Amendments No. 1, 2, and 3, is hereby approved on an accelerated
basis.
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\36\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\37\
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\37\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-8600 Filed 5-4-07; 8:45 am]
BILLING CODE 8010-01-P