Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Order Granting Accelerated Approval of Proposed Rule Change To Amend Certain Requirements Relating o Indexes Underlying Equity Index-Linked Securities, 67774-67776 [E7-23204]

Download as PDF 67774 Federal Register / Vol. 72, No. 230 / Friday, November 30, 2007 / Notices of the year.15 The Commission notes that scrutinizing companies in this manner should help to ensure that only those companies that can be expected to meet the Exchange’s standard will be listed. Finally, the Commission notes that companies listed under the proposal would be required to meet the existing standards of Section 102.01C of the Manual at the end of their current fiscal year or qualify at such time for original listing under another listing standard-otherwise, the Exchange would promptly initiate suspension and delisting procedures.16 Thus, the Commission believes that waiver of the 30-day operative delay period is consistent with the protection of investors and the public interest.17 At any time within 60 days of the filing of the proposed rule change, the Commission may summarily abrogate such proposed 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.18 IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–NYSE–2007–104 on the subject line. rwilkins on PROD1PC63 with NOTICES 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–NYSE–2007–104. 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 15 In implementing the proposal, the Commission expects the Exchange to thoroughly review companies for any such variations. 16 See proposed Sections 102.01C(I)(2) and 102.01C(II) of the Manual. 17 For purposes only of waiving the operative delay for this proposal, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 18 15 U.S.C. 78s(b)(3)(C). VerDate Aug<31>2005 16:27 Nov 29, 2007 Jkt 214001 only one method. The Commission will post all comments on the Commission’s Internet Web site (http://www.sec.gov/ rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for inspection and copying in the Commission’s Public Reference Room, 100 F Street, NE., Washington, DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. Copies of such 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–2007–104 and should be submitted on or before December 21, 2007. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.19 Nancy M. Morris, Secretary. [FR Doc. E7–23202 Filed 11–29–07; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–56838; File No. SR– NYSEArca–2007–118] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Order Granting Accelerated Approval of Proposed Rule Change To Amend Certain Requirements Relating o Indexes Underlying Equity IndexLinked Securities November 26, 2007. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 notice is hereby given that on November 13, 2007, NYSE Arca, Inc. (‘‘NYSE Arca’’ or ‘‘Exchange’’), through its wholly owned subsidiary, NYSE Arca Equities, Inc. (‘‘NYSE Arca Equities’’), filed with the Securities and Exchange 19 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 PO 00000 Frm 00079 Fmt 4703 Sfmt 4703 Commission (‘‘Commission’’) the proposed rule change as described in Items I and II below, which items have been substantially prepared by the Exchange. This order provides notice of the proposed rule change and approves the proposed rule change on an accelerated basis. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend NYSE Arca Equities Rule 5.2(j)(6) to amend certain requirements relating to indexes underlying Equity Index-Linked Securities.3 The text of the proposed rule change is available at the Exchange, the Commission’s Public Reference Room, and www.nyse.com. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item III below. The Exchange has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose NYSE Arca Equities Rule 5.2(j)(6)(B)(I)(2)(d) currently provides that each Equity Reference Asset (i) must be calculated based on either a capitalization, modified capitalization, price, equal-dollar, or modified equaldollar weighting methodology, and (ii) if based upon the equal-dollar or modified equal-dollar weighting method, must be rebalanced at least quarterly. The Exchange proposes to amend NYSE Arca Equities Rule 5.2(j)(6)(B)(I)(2)(d) to delete the requirement that the Equity Reference Asset used in connection with an issuance of Equity Index-Linked Securities must be calculated based on either a capitalization, modified capitalization, price, equal-dollar, or modified equal-dollar weighting 3 The Exchange defines Equity Index-Linked Securities as securities that provide for the payment at maturity of a cash amount based on the performance of an underlying index or indexes of equity securities (each such index, an ‘‘Equity Reference Asset’’). See NYSE Arca Equities Rule 5.2(j)(6). E:\FR\FM\30NON1.SGM 30NON1 Federal Register / Vol. 72, No. 230 / Friday, November 30, 2007 / Notices rwilkins on PROD1PC63 with NOTICES methodology. In addition, the Exchange proposes to provide that Equity Reference Assets based upon the equaldollar or modified equal-dollar weighting method must be rebalanced at least semiannually, rather than quarterly, as is currently the case. The Exchange states that the elimination of the limitations as to weighting methodologies permitted for Equity Reference Assets underlying Equity Index-Linked Securities would make NYSE Arca Equities Rule 5.2(j)(6) consistent with the Equity Index-Linked Securities listing standards of other national securities exchanges, such as the New York Stock Exchange LLC (‘‘NYSE’’),4 which has no such requirements. The Exchange further states that a significant number of currently existing equity indexes that utilize the equal-dollar or modified equal-dollar weighting methodology are rebalanced semiannually rather than quarterly. Because the issuer of Equity Index-Linked Securities generally licenses the right to utilize the underlying index from a third-party index sponsor, it is often not within the issuer’s control to have the index rebalanced more frequently. As such, it is not possible currently to list Equity Index-Linked Securities under NYSE Arca Equities Rule 5.2(j)(6) based on such indexes. The Exchange believes, however, that, because these types of indexes are relatively common and detailed information concerning the procedures governing the construction of the underlying index will be available to investors either in the issuer’s prospectus or on the index sponsor’s Internet Web site, it would be appropriate to allow investors to make their own decisions as to the sufficiency of a semiannual rebalancing of an equaldollar or modified equal-dollar index underlying an issuance of Equity IndexLinked Securities. The Exchange further states that investors and issuers would benefit from NYSE Arca’s ability to list, without delay, Equity Index-Linked Securities based on a broader group of such indexes. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,5 in general, and furthers the objectives of Section 6(b)(5) of the Act,6 in particular, in that it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of 4 See Section 703.22 of the NYSE Listed Company Manual. 5 15 U.S.C. 78f(b). 6 15 U.S.C. 78f(b)(5). VerDate Aug<31>2005 16:27 Nov 29, 2007 Jkt 214001 trade, to foster cooperation and coordination with persons engaged in 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. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others The Exchange has neither solicited nor received written comments on the proposed rule change. 67775 provisions of 5 U.S.C. 552, will be available for inspection and copying in the Commission’s Public Reference Room, 100 F Street, NE., Washington, DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. Copies of such 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–NYSEArca–2007–118 and should be submitted on or before December 21, 2007. IV. Commission’s Findings and Order Granting Accelerated Approval of the Proposed Rule Change After careful consideration, the Commission finds that the proposed III. Solicitation of Comments rule change is consistent with the Interested persons are invited to requirements of the Act and the rules submit written data, views and and regulations thereunder applicable to arguments concerning the foregoing, a national securities exchange 7 and, in including whether the proposed rule particular, the requirements of Section 6 change is consistent with the Act. of the Act.8 Specifically, the Comments may be submitted by any of Commission finds that the proposed the following methods: rule change is consistent with Section 6(b)(5) of the Act,9 which requires, Electronic Comments among other things, that the rules of a • Use the Commission’s Internet national securities exchange be comment form (http://www.sec.gov/ designed to promote just and equitable rules/sro.shtml); or principles of trade, to foster cooperation • Send e-mail to ruleand coordination with persons engaged comments@sec.gov. Please include File in regulating, clearing, settling, Number SR–NYSEArca–2007–118 on processing information with respect to, the subject line. and facilitating transactions in securities, to remove impediments to Paper Comments and perfect the mechanism of a free and • Send paper comments in triplicate open market and a national market to Nancy M. Morris, Secretary, system, and, in general, to protect Securities and Exchange Commission, investors and the public interest. 100 F Street, NE., Washington, DC The Commission notes that the 20549–1090. proposal to delete the requirement that All submissions should refer to File the Equity Reference Asset be calculated Number SR–NYSEArca–2007–118. This based on certain specified file number should be included on the methodologies would conform the subject line if e-mail is used. To help the Exchange’s requirements to the current Commission process and review your listing standards for Equity Indexcomments more efficiently, please use Linked Securities of another national only one method. The Commission will securities exchange.10 The Commission post all comments on the Commission’s further believes that the proposal to require Equity Reference Assets that are Internet Web site (http://www.sec.gov/ based on the equal-dollar or modified rules/sro.shtml). Copies of the equal-dollar weighting methods to be submission, all subsequent rebalanced at least semiannually should amendments, all written statements benefit investors by providing a wider with respect to the proposed rule change that are filed with the 7 In approving this proposed rule change, the Commission, and all written Commission has considered the proposed rule’s communications relating to the impact on efficiency, competition, and capital proposed rule change between the formation. See 15 U.S.C. 78c(f). Commission and any person, other than 8 15 U.S.C. 78f. 9 15 U.S.C. 78f(b)(5). those that may be withheld from the 10 See supra note 4. public in accordance with the PO 00000 Frm 00080 Fmt 4703 Sfmt 4703 E:\FR\FM\30NON1.SGM 30NON1 67776 Federal Register / Vol. 72, No. 230 / Friday, November 30, 2007 / Notices selection of derivative products based on such Equity Reference Assets. The Commission believes that the proposal to adjust the minimum rebalancing frequency requirement is reasonable, given the increasing number of equaldollar or modified equal-dollar weighted indexes that are rebalanced on a semiannual-basis, and should allow for the listing and trading of certain Equity Index-Linked Securities that would otherwise not be able to be listed and traded on the Exchange. The Commission finds good cause for approving the proposed rule change prior to the 30th day after the date of publication of the notice of filing thereof in the Federal Register. With respect to the deletion of the provision requiring Equity Reference Assets to be based on certain specified calculation methodologies, the Commission notes that it has approved the deletion of a similar requirement under NYSE listing standards for Equity Index-Linked Securities 11 and does not believe that this proposal raises any novel regulatory issues. With respect to the Exchange’s proposal to adjust the minimum rebalancing frequency for certain Equity Reference Assets, accelerating approval of this proposal should benefit investors by providing, without undue delay, additional Equity Index-Linked Securities products for investors and fostering competition in the market for such products. Therefore, the Commission finds good cause, consistent with Section 19(b)(2) of the Act,12 to approve the proposed rule change on an accelerated basis. V. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,13 that the proposed rule change (SR–NYSEArca– 2007–118) be, and it hereby is, approved on anaccelerated basis. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.14 Nancy M. Morris, Secretary. [FR Doc. E7–23204 Filed 11–29–07; 8:45 am] rwilkins on PROD1PC63 with NOTICES BILLING CODE 8011–01–P 11 Id. 12 15 U.S.C. 78s(b)(2). 13 Id. 14 17 CFR 200.30–3(a)(12). VerDate Aug<31>2005 16:27 Nov 29, 2007 Jkt 214001 SOCIAL SECURITY ADMINISTRATION Agency Information Collection Activities: Proposed Request and Comment Request The Social Security Administration (SSA) publishes a list of information collection packages that will require clearance by the Office of Management and Budget (OMB) in compliance with Public Law 104–13, the Paperwork Reduction Act of 1995, effective October 1, 1995. The information collection packages that may be included in this notice are for new information collections, approval of existing information collections, revisions to OMB-approved information collections, and extensions (no change) of OMBapproved information collections. SSA is soliciting comments on the accuracy of the agency’s burden estimate; the need for the information; its practical utility; ways to enhance its quality, utility, and clarity; and on ways to minimize burden on respondents, including the use of automated collection techniques or other forms of information technology. Written comments and recommendations regarding the information collection(s) should be submitted to the OMB Desk Officer and the SSA Reports Clearance Officer. The information can be mailed, faxed or emailed to the individuals at the addresses and fax numbers listed below: (OMB), Office of Management and Budget, Attn: Desk Officer for SSA, Fax: 202–395–6974, E-mail address: OIRA_Submission@omb.eop.gov. (SSA), Social Security Administration, DCBFM, Attn: Reports Clearance Officer, 1333 Annex Building, 6401 Security Blvd., Baltimore, MD 21235, Fax: 410–965–6400, E-mail address: OPLM.RCO@ssa.gov. I. The information collections listed below are pending at SSA and will be submitted to OMB within 60 days from the date of this notice. Therefore, your comments should be submitted to SSA within 60 days from the date of this publication. You can obtain copies of the collection instruments by calling the SSA Reports Clearance Officer at 410– 965–0454 or by writing to the address listed above. 1. Request for Review of Hearing Decision/Order—20 CFR 404.967– 404.981, 416.1467–416.1481—0960– 0277. The HA–520 is needed in order to afford claimants their statutory right under the Social Security Act and implementing regulations to request review of an Administrative Law Judge’s (ALJ) hearing decision or dismissal of a hearing request on title II and title XVI PO 00000 Frm 00081 Fmt 4703 Sfmt 4703 claims. An individual may request Appeals Council review by filing a written request. A completed HA–520 ensures that SSA receives the information necessary to establish that the claimant filed the request for review within the prescribed time, and that the claimant has completed the requisite steps to permit review by the Appeals Council. The Appeals Council also uses the information to document the claimant’s reason(s) for disagreeing with the ALJ’ s decision or dismissal, to determine whether the claimant has additional evidence to submit, and to determine whether the claimant has a representative or wants to appoint one. The respondents are claimants requesting review of an ALJ’s decision or dismissal of hearing on Social Security. Type of Request: Revision of an OMBapproved information collection. Number of Respondents: 100,000. Frequency of Response: 1. Average Burden Per Response: 10 minutes. Estimated Annual Burden: 16,667 hours. 2. Epidemiological Research Report— 20 CFR 401.165—0960–0701. Section 311 of the Social Security Independence and Program Improvements Act of 1994 directed SSA to provide support to health researchers involved in epidemiological research. Specifically, when a study is determined to contribute to a national health interest, SSA will furnish information to determine whether a study subject is shown on the SSA administrative records as being alive or deceased (vital status). SSA will recoup all expenses incurred in providing this information. Web-posted questions solicit the information SSA needs to provide the data and to collect the fees. The requestors are scientific researchers who are applying to receive vital status information about individuals from Social Security administrative data records. Type of Request: Extension of an OMB-approved information collection. Number of Respondents: 30. Frequency of Response: 1. Average Burden Per Response: 120 minutes. Estimated Annual Burden: 60 hours. 3. Work Activity Report (SelfEmployed Person)—20 CFR 404.1520(b), 404.1571–404.1576, 404.1584–404.1593, and 416.971–416.976—0960–0598. The information on Form SSA–820–F4 is used by SSA to determine initial or continuing eligibility for Supplemental Security Income (SSI) or Social Security disability benefits. Under titles II and XVI of the Act, applicants for disability E:\FR\FM\30NON1.SGM 30NON1

Agencies

[Federal Register Volume 72, Number 230 (Friday, November 30, 2007)]
[Notices]
[Pages 67774-67776]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-23204]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56838; File No. SR-NYSEArca-2007-118]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Order Granting Accelerated Approval of Proposed Rule Change To 
Amend Certain Requirements Relating o Indexes Underlying Equity Index-
Linked Securities

November 26, 2007.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on November 13, 2007, NYSE Arca, Inc. (``NYSE Arca'' or ``Exchange''), 
through its wholly owned subsidiary, NYSE Arca Equities, Inc. (``NYSE 
Arca Equities''), filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I and 
II below, which items have been substantially prepared by the Exchange. 
This order provides notice of the proposed rule change and approves the 
proposed rule change on an accelerated basis.
---------------------------------------------------------------------------

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

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

    The Exchange proposes to amend NYSE Arca Equities Rule 5.2(j)(6) to 
amend certain requirements relating to indexes underlying Equity Index-
Linked Securities.\3\ The text of the proposed rule change is available 
at the Exchange, the Commission's Public Reference Room, and 
www.nyse.com.
---------------------------------------------------------------------------

    \3\ The Exchange defines Equity Index-Linked Securities as 
securities that provide for the payment at maturity of a cash amount 
based on the performance of an underlying index or indexes of equity 
securities (each such index, an ``Equity Reference Asset''). See 
NYSE Arca Equities Rule 5.2(j)(6).
---------------------------------------------------------------------------

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

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

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

1. Purpose
    NYSE Arca Equities Rule 5.2(j)(6)(B)(I)(2)(d) currently provides 
that each Equity Reference Asset (i) must be calculated based on either 
a capitalization, modified capitalization, price, equal-dollar, or 
modified equal-dollar weighting methodology, and (ii) if based upon the 
equal-dollar or modified equal-dollar weighting method, must be 
rebalanced at least quarterly. The Exchange proposes to amend NYSE Arca 
Equities Rule 5.2(j)(6)(B)(I)(2)(d) to delete the requirement that the 
Equity Reference Asset used in connection with an issuance of Equity 
Index-Linked Securities must be calculated based on either a 
capitalization, modified capitalization, price, equal-dollar, or 
modified equal-dollar weighting

[[Page 67775]]

methodology. In addition, the Exchange proposes to provide that Equity 
Reference Assets based upon the equal-dollar or modified equal-dollar 
weighting method must be rebalanced at least semiannually, rather than 
quarterly, as is currently the case.
    The Exchange states that the elimination of the limitations as to 
weighting methodologies permitted for Equity Reference Assets 
underlying Equity Index-Linked Securities would make NYSE Arca Equities 
Rule 5.2(j)(6) consistent with the Equity Index-Linked Securities 
listing standards of other national securities exchanges, such as the 
New York Stock Exchange LLC (``NYSE''),\4\ which has no such 
requirements. The Exchange further states that a significant number of 
currently existing equity indexes that utilize the equal-dollar or 
modified equal-dollar weighting methodology are rebalanced semiannually 
rather than quarterly. Because the issuer of Equity Index-Linked 
Securities generally licenses the right to utilize the underlying index 
from a third-party index sponsor, it is often not within the issuer's 
control to have the index rebalanced more frequently. As such, it is 
not possible currently to list Equity Index-Linked Securities under 
NYSE Arca Equities Rule 5.2(j)(6) based on such indexes. The Exchange 
believes, however, that, because these types of indexes are relatively 
common and detailed information concerning the procedures governing the 
construction of the underlying index will be available to investors 
either in the issuer's prospectus or on the index sponsor's Internet 
Web site, it would be appropriate to allow investors to make their own 
decisions as to the sufficiency of a semiannual rebalancing of an 
equal-dollar or modified equal-dollar index underlying an issuance of 
Equity Index-Linked Securities. The Exchange further states that 
investors and issuers would benefit from NYSE Arca's ability to list, 
without delay, Equity Index-Linked Securities based on a broader group 
of such indexes.
---------------------------------------------------------------------------

    \4\ See Section 703.22 of the NYSE Listed Company Manual.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\5\ in general, and furthers the 
objectives of Section 6(b)(5) of the Act,\6\ in particular, in that it 
is designed to prevent fraudulent and manipulative acts and practices, 
to promote just and equitable principles of trade, to foster 
cooperation and coordination with persons engaged in facilitating 
transactions in securities, 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.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act.

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

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

III. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://
www.sec.gov/rules/sro.shtml); or
     Send e-mail to rule-comments@sec.gov. Please include File 
Number SR-NYSEArca-2007-118 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NYSEArca-2007-118. This 
file number should be included on the subject line if e-mail is used. 
To help the Commission process and review your comments more 
efficiently, please use only one method. The Commission will post all 
comments on the Commission's Internet Web site (http://www.sec.gov/
rules/sro.shtml). Copies of the submission, all subsequent amendments, 
all written statements with respect to the proposed rule change that 
are filed with the Commission, and all written communications relating 
to the proposed rule change between the Commission and any person, 
other than those that may be withheld from the public in accordance 
with the provisions of 5 U.S.C. 552, will be available for inspection 
and copying in the Commission's Public Reference Room, 100 F Street, 
NE., Washington, DC 20549, on official business days between the hours 
of 10 a.m. and 3 p.m. Copies of such 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-NYSEArca-2007-118 and should 
be submitted on or before December 21, 2007.

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

    After careful consideration, the Commission finds that the proposed 
rule change is consistent with the requirements of the Act and the 
rules and regulations thereunder applicable to a national securities 
exchange \7\ and, in particular, the requirements of Section 6 of the 
Act.\8\ Specifically, the Commission finds that the proposed rule 
change is consistent with Section 6(b)(5) of the Act,\9\ which 
requires, among other things, that the rules of a national securities 
exchange 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.
---------------------------------------------------------------------------

    \7\ In approving this proposed rule change, the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. See 15 U.S.C. 78c(f).
    \8\ 15 U.S.C. 78f.
    \9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Commission notes that the proposal to delete the requirement 
that the Equity Reference Asset be calculated based on certain 
specified methodologies would conform the Exchange's requirements to 
the current listing standards for Equity Index-Linked Securities of 
another national securities exchange.\10\ The Commission further 
believes that the proposal to require Equity Reference Assets that are 
based on the equal-dollar or modified equal-dollar weighting methods to 
be rebalanced at least semiannually should benefit investors by 
providing a wider

[[Page 67776]]

selection of derivative products based on such Equity Reference Assets. 
The Commission believes that the proposal to adjust the minimum 
rebalancing frequency requirement is reasonable, given the increasing 
number of equal-dollar or modified equal-dollar weighted indexes that 
are rebalanced on a semiannual-basis, and should allow for the listing 
and trading of certain Equity Index-Linked Securities that would 
otherwise not be able to be listed and traded on the Exchange.
---------------------------------------------------------------------------

    \10\ See supra note 4.
---------------------------------------------------------------------------

    The Commission finds good cause for approving the proposed rule 
change prior to the 30th day after the date of publication of the 
notice of filing thereof in the Federal Register. With respect to the 
deletion of the provision requiring Equity Reference Assets to be based 
on certain specified calculation methodologies, the Commission notes 
that it has approved the deletion of a similar requirement under NYSE 
listing standards for Equity Index-Linked Securities \11\ and does not 
believe that this proposal raises any novel regulatory issues. With 
respect to the Exchange's proposal to adjust the minimum rebalancing 
frequency for certain Equity Reference Assets, accelerating approval of 
this proposal should benefit investors by providing, without undue 
delay, additional Equity Index-Linked Securities products for investors 
and fostering competition in the market for such products. Therefore, 
the Commission finds good cause, consistent with Section 19(b)(2) of 
the Act,\12\ to approve the proposed rule change on an accelerated 
basis.
---------------------------------------------------------------------------

    \11\ Id.
    \12\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------

V. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\13\ that the proposed rule change (SR-NYSEArca-2007-118) be, and 
it hereby is, approved on an accelerated basis.
---------------------------------------------------------------------------

    \13\ Id.
    \14\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
Nancy M. Morris,
Secretary.
[FR Doc. E7-23204 Filed 11-29-07; 8:45 am]
BILLING CODE 8011-01-P