Rydex ETF Trust, et al., 56395-56396 [E7-19538]
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Federal Register / Vol. 72, No. 191 / Wednesday, October 3, 2007 / Notices
experienced, successful and dedicated
business and professional people who
are critical to applicant’s success as a
BDC.
4. Applicant states that the amount of
voting securities that would result from
the exercise of all outstanding options
issued to applicant’s directors, officers,
and employees under the Other Plans
and the Plan would be 19,173,168
shares of applicant’s common stock, or
approximately 10.3% of applicant’s
outstanding voting securities as of
August 31, 2007, which is below the
percentage limitations in the Act.
Applicant asserts that, given the
relatively small amount of common
stock issuable to Non-employee
Directors upon their exercise of options
under the Plan, the exercise of such
options would not, absent extraordinary
circumstances, have a substantial
dilutive effect on the net asset value of
applicant’s common stock.
For the Commission, by the Division of
Investment Management, pursuant to
delegated authority.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–19539 Filed 10–2–07; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Investment Company Act Release No.
28000; 812–13390]
Rydex ETF Trust, et al.; Notice of
Application
September 27, 2007.
Securities and Exchange
Commission (‘‘Commission’’).
ACTION: Notice of an application to
amend a prior order under section 6(c)
of the Investment Company Act of 1940
(‘‘Act’’) for an exemption from sections
2(a)(32), 5(a)(1), 22(d) and 24(d) of the
Act and rule 22c–1 under the Act, and
under sections 6(c) and 17(b) of the Act
for an exemption from sections 17(a)(1)
and (a)(2) of the Act.
AGENCY:
Rydex ETF Trust (‘‘Trust’’),
PADCO Advisors II, Inc. (‘‘Adviser’’),
and Rydex Distributors, Inc.
(‘‘Distributor’’).
SUMMARY OF APPLICATION: Applicants
request an order to amend a prior order
that permits: (a) Certain open-end
management investment companies
(‘‘Initial Funds’’) to issue shares
redeemable in large aggregations only
(‘‘Shares’’); (b) secondary market
transactions in Shares to occur at
negotiated market prices; (c) dealers to
sell Shares to secondary market
rwilkins on PROD1PC63 with NOTICES
APPLICANTS:
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18:31 Oct 02, 2007
Jkt 211001
purchasers unaccompanied by a
prospectus, when prospectus delivery is
not required by the Securities Act of
1933; and (d) certain affiliated persons
of the Initial Funds to deposit securities
into, and receive securities from, the
Initial Funds in connection with the
purchase and redemption of
aggregations of Shares (‘‘Prior Order’’).1
Applicants seek an amended order to
permit the Trust to offer series (‘‘New
Inverse Funds’’) that seek to achieve the
inverse performance of certain
international equity and fixed income
securities indices (collectively, ‘‘New
Underlying Indices’’). The amended
order also would permit the Trust to
offer future series (‘‘Future Funds’’) that
seek to achieve a multiple or the inverse
of the performance of additional equity
and fixed income securities indices (the
New Inverse Funds and Future Funds
are ‘‘New Funds,’’ and the New Funds
and Initial Funds are ‘‘Funds’’).
FILING DATES: The application was filed
on May 23, 2007, and amended on
September 21, 2007. Applicants have
agreed to file an amendment during the
notice period, the substance of which is
reflected in this notice.
HEARING OR NOTIFICATION OF HEARING: An
order granting the requested relief will
be issued unless the Commission orders
a hearing. Interested persons may
request a hearing by writing to the
Commission’s Secretary and serving
applicants with a copy of the request,
personally or by mail. Hearing requests
should be received by the Commission
by 5:30 p.m. on October 22, 2007, and
should be accompanied by proof of
service on applicants, in the form of an
affidavit or, for lawyers, a certificate of
service. Hearing requests should state
the nature of the writer’s interest, the
reason for the request, and the issues
contested. Persons who wish to be
notified of a hearing may request
notification by writing to the
Commission’s Secretary.
ADDRESSES: Secretary, U.S. Securities
and Exchange Commission, 100 F
Street, NE., Washington, DC 20549–
1090. Applicants: Rydex ETF Trust;
Rydex Distributors, Inc.; and PADCO
Advisors II, Inc., 9601 Blackwell Road,
Suite 500, Rockville, MD 20850.
FOR FURTHER INFORMATION CONTACT:
Laura L. Solomon, Senior Counsel, at
(202) 551–6915, or Julia Kim Gilmer,
Branch Chief, at (202) 551–6821
(Division of Investment Management,
Office of Investment Company
Regulation).
1 Rydex
ETF Trust, et al., Investment Company
Act Release Nos. 27703 (Feb. 20, 2007) (notice) and
27754 (Mar. 20, 2007) (order).
PO 00000
Frm 00065
Fmt 4703
Sfmt 4703
56395
The
following is a summary of the
application. The complete application
may be obtained for a fee at the
Commission’s Public Reference Desk,
100 F Street, NE., Washington, DC
20549–0102 (tel. 202–551–5850).
SUPPLEMENTARY INFORMATION:
Applicants’ Representations
1. The Trust, a Delaware statutory
trust, is an open-end management
investment company registered under
the Act and is organized as a series fund
with multiple separate Funds. The
Adviser, which is registered as an
investment adviser under the
Investment Advisers Act of 1940
(‘‘Advisers Act’’), serves as investment
adviser to each Fund. The Adviser may
in the future retain one or more subadvisers (‘‘Sub-Advisers’’) to manage
particular Funds’ portfolios. Any SubAdviser to a Fund will be registered
under the Advisers Act. The Distributor,
a broker-dealer registered under the
Securities Exchange Act of 1934, serves
as the principal underwriter and
distributor for the Funds.
2. The Prior Order permits the Initial
Funds to seek daily investment results,
before fees and expenses, that (a)
Correspond to 125%, 150% or 200% of
the return of certain equity securities
indices, or (b) move in the opposite
direction of the performance of certain
equity securities indices in multiples of
100%, 125%, 150% or 200%.
Applicants seek to amend the Prior
Order to permit the Trust to issue shares
of New Inverse Funds using the New
Underlying Indices,2 and Future Funds
using additional securities indices (such
additional indices, together with the
New Underlying Indices and the
underlying indices for the Initial Funds,
the ‘‘Underlying Indices’’).
3. A New Fund using a fixed income
index as its Underlying Index will not:
(a) Hold restricted securities eligible for
resale pursuant to Rule 144A under the
Securities Act of 1933, or (b) engage in
‘‘to-be-announced’’ transactions when
trading mortgage-backed securities.
Additionally, such New Funds will use
the same portfolio investment
methodology currently used by the
Trust except that, where relevant, such
Funds may also invest in the fixed
income equivalents of the portfolio
investments described in the
application for the Prior Order. A New
Fund that uses an international index as
its Underlying Index will not hold
depositary receipts.
2 The New Underlying Indices, which are
described in the application, include 41
international equity indices and 18 fixed income
indices.
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56396
Federal Register / Vol. 72, No. 191 / Wednesday, October 3, 2007 / Notices
For the Commission, by the Division of
Investment Management, pursuant to
delegated authority.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–19538 Filed 10–2–07; 8:45 am]
Future Relief
1. Applicants seek to amend the Prior
Order to modify the terms under which
the Trust may offer Future Funds. The
Prior Order is currently subject to a
condition that does not permit relief for
Future Funds unless applicants request
and receive with respect to such Future
Fund, either exemptive relief from the
Commission or a no-action letter from
the Division of Investment Management
of the Commission.
2. The order would amend the Prior
Order to delete this condition. Any
Future Fund will: (a) Be advised by the
Adviser, or an entity controlled by or
under common control with the
Adviser; (b) use an Underlying Index
where the Underlying Index Provider is
not an affiliated person, as defined in
section 2(a)(3) of the Act, or an affiliated
person of an affiliated person, of the
Trust, a promoter, the Adviser, any SubAdviser, or the Distributor; and (c)
comply with the terms and conditions
of the Prior Order, as amended by the
present application.
3. Applicants believe that the
modification of the future relief
available under the Prior Order would
be consistent with sections 6(c) and
17(b) of the Act. Applicants believe that
granting the requested relief will
facilitate the timely creation of Future
Funds and the commencement of
secondary market trading of such Future
Funds by removing the need to seek
additional exemptive relief. Applicants
submit that the terms and conditions of
the Prior Order were appropriate for the
Initial Funds and would remain
appropriate for Future Funds.
rwilkins on PROD1PC63 with NOTICES
4. Applicants state that the New
Funds will operate in a manner
identical to the Initial Funds that were
the subject of the Prior Order, and be
offered pursuant to the same terms and
conditions of the Prior Order, except as
modified by this application. No entity
that creates, compiles, sponsors, or
maintains an Underlying Index (the
‘‘Underlying Index Provider’’) is or will
be an affiliated person, as defined in
section 2(a)(3) of the Act, or an affiliated
person of an affiliated person, of the
Trust, a promoter, the Adviser, any SubAdviser, or the Distributor. Applicants
believe that the requested relief
continues to meet the necessary
exemptive standards.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of China
Expert Technology, Inc. (‘‘China
Expert’’) because of questions regarding
the adequacy and accuracy of publiclydisseminated information concerning,
among other things, China Expert’s: (1)
Financial performance and business
prospects and (2) current financial
condition.
The Commission is of the opinion that
the public interest and the protection of
investors require a suspension of trading
in the securities of the above-listed
company.
Therefore, it is ordered, pursuant to
section 12(k) of the Securities Exchange
Act of 1934, that trading in the abovelisted company is suspended for the
period from 9:30 a.m. EDT, October 1,
2007 through 11:59 p.m. EDT, on
October 12, 2007.
Applicants’ Condition
Applicants agree that any amended
order granting the requested relief will
be subject to the same conditions as
those imposed by the Prior Order,
except for condition 1 to the Prior
Order, which will be deleted.
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18:31 Oct 02, 2007
Jkt 211001
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[File No. 500–1]
In the Matter of China Expert
Technology, Inc.; Order of Suspension
of Trading
October 1, 2007.
By the Commission.
Nancy M. Morris,
Secretary.
[FR Doc. 07–4915 Filed 10–1–07; 11:45 am]
BILLING CODE 8011–01–P
[File No. 500–1]
In the Matter of ConnectAJet.com, Inc.;
Order of Suspension of Trading
October 1, 2007.
It appears to the Securities and
Exchange Commission that the market
for the securities of ConnectAJet.com,
Inc. (‘‘ConnectAJet’’) may be reacting to
manipulative forces or deceptive
practices and that there is a lack of
current and accurate information about
ConnectAJet upon which an informed
investment decision can be made. It also
appears that there may be inaccurate
assertions by ConnectAJet in publicly-
Frm 00066
Fmt 4703
By the Commission.
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. 07–4916 Filed 10–1–07; 11:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–56567; File No. SR–Amex–
2007–96]
Self-Regulatory Organizations;
American Stock Exchange LLC; Order
Granting Accelerated Approval to a
Proposed Rule Change, as Modified by
Amendment No. 1, Relating to an
Extension and Expansion of the
Options Quoting Pilot Program
September 27, 2007.
I. Introduction
SECURITIES AND EXCHANGE
COMMISSION
PO 00000
disseminated press releases and on
ConnectAJet’s Web site about, among
other things, the existence of the
company’s partnerships and affiliations
with aviation companies.
ConnectAJet was quoted on the Pink
Sheet under the ticker symbol CAJT.
Recently, there have been
advertisements in newspapers and on
television, information mailers, spam emails and a blast fax touting the
company’s shares.
The Commission is of the opinion that
the public interest and the protection of
investors require a suspension of trading
in the securities of the above-listed
company.
Therefore, it is ordered, pursuant to
section 12(k) of the Securities Exchange
Act of 1934, that trading in the abovelisted company is suspended for the
period from 9:30 a.m. EDT, October 1,
2007 through 11:59 p.m. EDT, on
October 12, 2007.
Sfmt 4703
On August 21, 2007, the American
Stock Exchange LLC (‘‘Amex’’ 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
extend and expand a pilot program to
quote certain options in smaller
increments (‘‘Pilot Program’’ or ‘‘Pilot’’).
The proposed rule change was
published for comment in the Federal
Register on August 29, 2007.3 The
Commission received one comment
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 56307
(August 22, 2007), 72 FR 49750 (‘‘Amex Notice’’).
2 17
E:\FR\FM\03OCN1.SGM
03OCN1
]]>Agencies
[Federal Register Volume 72, Number 191 (Wednesday, October 3, 2007)]
[Notices]
[Pages 56395-56396]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-19538]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Investment Company Act Release No. 28000; 812-13390]
Rydex ETF Trust, et al.; Notice of Application
September 27, 2007.
AGENCY: Securities and Exchange Commission (``Commission'').
ACTION: Notice of an application to amend a prior order under section
6(c) of the Investment Company Act of 1940 (``Act'') for an exemption
from sections 2(a)(32), 5(a)(1), 22(d) and 24(d) of the Act and rule
22c-1 under the Act, and under sections 6(c) and 17(b) of the Act for
an exemption from sections 17(a)(1) and (a)(2) of the Act.
-----------------------------------------------------------------------
Applicants: Rydex ETF Trust (``Trust''), PADCO Advisors II, Inc.
(``Adviser''), and Rydex Distributors, Inc. (``Distributor'').
Summary of Application: Applicants request an order to amend a prior
order that permits: (a) Certain open-end management investment
companies (``Initial Funds'') to issue shares redeemable in large
aggregations only (``Shares''); (b) secondary market transactions in
Shares to occur at negotiated market prices; (c) dealers to sell Shares
to secondary market purchasers unaccompanied by a prospectus, when
prospectus delivery is not required by the Securities Act of 1933; and
(d) certain affiliated persons of the Initial Funds to deposit
securities into, and receive securities from, the Initial Funds in
connection with the purchase and redemption of aggregations of Shares
(``Prior Order'').\1\ Applicants seek an amended order to permit the
Trust to offer series (``New Inverse Funds'') that seek to achieve the
inverse performance of certain international equity and fixed income
securities indices (collectively, ``New Underlying Indices''). The
amended order also would permit the Trust to offer future series
(``Future Funds'') that seek to achieve a multiple or the inverse of
the performance of additional equity and fixed income securities
indices (the New Inverse Funds and Future Funds are ``New Funds,'' and
the New Funds and Initial Funds are ``Funds'').
---------------------------------------------------------------------------
\1\ Rydex ETF Trust, et al., Investment Company Act Release Nos.
27703 (Feb. 20, 2007) (notice) and 27754 (Mar. 20, 2007) (order).
Filing Dates: The application was filed on May 23, 2007, and amended on
September 21, 2007. Applicants have agreed to file an amendment during
---------------------------------------------------------------------------
the notice period, the substance of which is reflected in this notice.
Hearing or Notification of Hearing: An order granting the requested
relief will be issued unless the Commission orders a hearing.
Interested persons may request a hearing by writing to the Commission's
Secretary and serving applicants with a copy of the request, personally
or by mail. Hearing requests should be received by the Commission by
5:30 p.m. on October 22, 2007, and should be accompanied by proof of
service on applicants, in the form of an affidavit or, for lawyers, a
certificate of service. Hearing requests should state the nature of the
writer's interest, the reason for the request, and the issues
contested. Persons who wish to be notified of a hearing may request
notification by writing to the Commission's Secretary.
ADDRESSES: Secretary, U.S. Securities and Exchange Commission, 100 F
Street, NE., Washington, DC 20549-1090. Applicants: Rydex ETF Trust;
Rydex Distributors, Inc.; and PADCO Advisors II, Inc., 9601 Blackwell
Road, Suite 500, Rockville, MD 20850.
FOR FURTHER INFORMATION CONTACT: Laura L. Solomon, Senior Counsel, at
(202) 551-6915, or Julia Kim Gilmer, Branch Chief, at (202) 551-6821
(Division of Investment Management, Office of Investment Company
Regulation).
SUPPLEMENTARY INFORMATION: The following is a summary of the
application. The complete application may be obtained for a fee at the
Commission's Public Reference Desk, 100 F Street, NE., Washington, DC
20549-0102 (tel. 202-551-5850).
Applicants' Representations
1. The Trust, a Delaware statutory trust, is an open-end management
investment company registered under the Act and is organized as a
series fund with multiple separate Funds. The Adviser, which is
registered as an investment adviser under the Investment Advisers Act
of 1940 (``Advisers Act''), serves as investment adviser to each Fund.
The Adviser may in the future retain one or more sub-advisers (``Sub-
Advisers'') to manage particular Funds' portfolios. Any Sub-Adviser to
a Fund will be registered under the Advisers Act. The Distributor, a
broker-dealer registered under the Securities Exchange Act of 1934,
serves as the principal underwriter and distributor for the Funds.
2. The Prior Order permits the Initial Funds to seek daily
investment results, before fees and expenses, that (a) Correspond to
125%, 150% or 200% of the return of certain equity securities indices,
or (b) move in the opposite direction of the performance of certain
equity securities indices in multiples of 100%, 125%, 150% or 200%.
Applicants seek to amend the Prior Order to permit the Trust to issue
shares of New Inverse Funds using the New Underlying Indices,\2\ and
Future Funds using additional securities indices (such additional
indices, together with the New Underlying Indices and the underlying
indices for the Initial Funds, the ``Underlying Indices'').
---------------------------------------------------------------------------
\2\ The New Underlying Indices, which are described in the
application, include 41 international equity indices and 18 fixed
income indices.
---------------------------------------------------------------------------
3. A New Fund using a fixed income index as its Underlying Index
will not: (a) Hold restricted securities eligible for resale pursuant
to Rule 144A under the Securities Act of 1933, or (b) engage in ``to-
be-announced'' transactions when trading mortgage-backed securities.
Additionally, such New Funds will use the same portfolio investment
methodology currently used by the Trust except that, where relevant,
such Funds may also invest in the fixed income equivalents of the
portfolio investments described in the application for the Prior Order.
A New Fund that uses an international index as its Underlying Index
will not hold depositary receipts.
[[Page 56396]]
4. Applicants state that the New Funds will operate in a manner
identical to the Initial Funds that were the subject of the Prior
Order, and be offered pursuant to the same terms and conditions of the
Prior Order, except as modified by this application. No entity that
creates, compiles, sponsors, or maintains an Underlying Index (the
``Underlying Index Provider'') is or will be an affiliated person, as
defined in section 2(a)(3) of the Act, or an affiliated person of an
affiliated person, of the Trust, a promoter, the Adviser, any Sub-
Adviser, or the Distributor. Applicants believe that the requested
relief continues to meet the necessary exemptive standards.
Future Relief
1. Applicants seek to amend the Prior Order to modify the terms
under which the Trust may offer Future Funds. The Prior Order is
currently subject to a condition that does not permit relief for Future
Funds unless applicants request and receive with respect to such Future
Fund, either exemptive relief from the Commission or a no-action letter
from the Division of Investment Management of the Commission.
2. The order would amend the Prior Order to delete this condition.
Any Future Fund will: (a) Be advised by the Adviser, or an entity
controlled by or under common control with the Adviser; (b) use an
Underlying Index where the Underlying Index Provider is not an
affiliated person, as defined in section 2(a)(3) of the Act, or an
affiliated person of an affiliated person, of the Trust, a promoter,
the Adviser, any Sub-Adviser, or the Distributor; and (c) comply with
the terms and conditions of the Prior Order, as amended by the present
application.
3. Applicants believe that the modification of the future relief
available under the Prior Order would be consistent with sections 6(c)
and 17(b) of the Act. Applicants believe that granting the requested
relief will facilitate the timely creation of Future Funds and the
commencement of secondary market trading of such Future Funds by
removing the need to seek additional exemptive relief. Applicants
submit that the terms and conditions of the Prior Order were
appropriate for the Initial Funds and would remain appropriate for
Future Funds.
Applicants' Condition
Applicants agree that any amended order granting the requested
relief will be subject to the same conditions as those imposed by the
Prior Order, except for condition 1 to the Prior Order, which will be
deleted.
For the Commission, by the Division of Investment Management,
pursuant to delegated authority.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-19538 Filed 10-2-07; 8:45 am]
BILLING CODE 8011-01-P
