Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing of Proposed Rule Change Relating to Certain Modifications to the Initial Listing Standards for Index-Linked Securities, 70640-70642 [E7-23971]
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Federal Register / Vol. 72, No. 238 / Wednesday, December 12, 2007 / Notices
cooperation and coordination with
persons engaged in facilitating
transactions in securities, and to remove
impediments to and perfect the
mechanisms of a free and open market
and a national market system.
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. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 35 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which NYSE Arca consents, the
Commission will:
(A) By order approve such proposed
rule change, or
(B) institute proceedings to determine
whether the proposed rule change
should be disapproved.
IV. Solicitation of Comments
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, 100 F Street, NE., Washington,
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m.
Copies of the filing also will be available
for inspection and copying at the
principal office of NYSE Arca. 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–2007–121 and
should be submitted on or before
January 2, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–23972 Filed 12–11–07; 8:45 am]
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 8011–01–P
Electronic Comments
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing of Proposed
Rule Change Relating to Certain
Modifications to the Initial Listing
Standards for Index-Linked Securities
• 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–NYSEArca–2007–121 on
the subject line.
mstockstill on PROD1PC66 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–NYSEArca–2007–121. This
file number should be included on the
subject line if e-mail is used. To help the
VerDate Aug<31>2005
15:54 Dec 11, 2007
Jkt 214001
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–56907; File No. SR–
NYSEArca–2007–122]
December 5, 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
28, 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
12 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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Frm 00082
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Sfmt 4703
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been substantially prepared by the
Exchange. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
NYSE Arca Equities Rule 5.2(j)(6), the
Exchange’s listing standards for Equity
Index-Linked Securities, CommodityLinked Securities, and Currency-Linked
Securities (collectively, ‘‘Index-Linked
Securities’’).3 The text of the proposed
rule change is available at the Exchange,
the Commission’s Public Reference
Room, and https://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 IV below. The
Exchange has prepared summaries, set
forth in Sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend one
of the requirements of NYSE Arca
Equities Rule 5.2(j)(6)(A), which sets
3 NYSE Arca Equities Rule 5.2(j)(6) defines Equity
Index-Linked Securities to be 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 (an ‘‘Equity
Reference Asset’’). Commodity-Linked Securities
are securities that provide for the payment at
maturity of a cash amount based on the
performance of one or more physical commodities
or commodity futures, options or other commodity
derivatives or Commodity-Based Trust Shares (as
defined in NYSE Arca Equities Rule 8.201), or a
basket or index of any of the foregoing (a
‘‘Commodity Reference Asset’’). Currency-Linked
Securities are securities that provide for the
payment at maturity of a cash amount based on the
performance of one or more currencies, or options
or currency futures or other currency derivatives or
Currency Trust Shares (as defined in NYSE Arca
Equities Rule 8.202), or a basket or index of any of
the foregoing (a ‘‘Currency Reference Asset,’’ and
together with Equity Reference Asset and
Commodity Reference Asset, collectively, a
‘‘Reference Asset’’).
E:\FR\FM\12DEN1.SGM
12DEN1
Federal Register / Vol. 72, No. 238 / Wednesday, December 12, 2007 / Notices
mstockstill on PROD1PC66 with NOTICES
forth the listing requirements applicable
to all types of Index-Linked Securities to
be listed and traded on the Exchange, to
provide for greater flexibility in the
listing criteria for such securities.
Currently, NYSE Arca Equities Rule
5.2(j)(6)(A)(d) provides that the payment
at maturity of a cash amount for IndexLinked Securities may or may not
provide for a multiple of the positive
performance of an underlying Reference
Asset, and in no event will payment at
maturity be based on a multiple of the
negative performance of an underlying
Reference Asset.
The Exchange proposes to amend
NYSE Arca Equities Rule 5.2(j)(6)(A)(d)
to: (a) Allow the Exchange to consider
for listing and trading Index-Linked
Securities that provide for payment at
maturity based on a multiple of the
direct or inverse performance of an
underlying Reference Asset; and (b)
provide that in no event will a loss or
negative payment at maturity be
accelerated by a multiple that exceeds
twice the performance of an underlying
Reference Asset. The Exchange proposes
these changes in order to permit the
listing and trading of Index-Linked
Securities that employ investment
strategies similar or analogous to certain
exchange-traded funds like the Short
Funds and UltraShort Funds of the
ProShares Trust and the Inverse Funds
and Leveraged Inverse Funds of the
Rydex ETF Trust, each of which trade
on the Exchange pursuant to unlisted
trading privileges (‘‘UTP’’) under NYSE
Arca Equities Rule 5.2(j)(3).4 The Short
Funds and Inverse Funds seek daily
investment results, before fees and
expenses, that correspond to the inverse
or opposite of the daily performance
(¥100%) of the respective underlying
indexes, and the Ultra Short Funds and
Leveraged Inverse Funds seek daily
investment results, before fees and
expenses, that correspond to twice the
inverse or opposite of the daily
performance (¥200%) of the respective
underlying indexes.
The Exchange believes that these
changes will allow greater flexibility in
the listing and trading of Index-Linked
B. Self-Regulatory Organization’s
Statement on Burden on Competition
4 See Securities Exchange Act Release Nos. 56763
(November 7, 2007), 72 FR 64103 (November 14,
2007) (SR–NYSEArca–2007–81) (approving the
trading of shares of funds of the Rydex ETF Trust
pursuant to UTP); 56601 (October 2, 2007), 72 FR
57625 (October 10, 2007) (SR–NYSEArca–2007–79)
(approving the trading shares of eight funds of the
ProShares Trust based on international equity
indexes pursuant to UTP); 55125 (January 18, 2007),
72 FR 3462 (January 25, 2007) (SR–NYSEArca–
2006–87) (approving the trading of shares of 81
funds of the ProShares Trust pursuant to UTP); and
54026 (June 21, 2006), 71 FR 36850 (June 28, 2006)
(SR–PCX–2005–115) (approving the trading of
shares of certain other funds of the ProShares Trust
pursuant to UTP).
IV. Solicitation of Comments
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15:54 Dec 11, 2007
Jkt 214001
Securities and offer investors additional
investment options. The Exchange
believes that investors will continue to
be protected because the payment at
maturity cannot be based on a multiple
that exceeds twice the inverse
performance of an underlying Reference
Asset.5
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,6 in general, and
furthers the objectives of Section 6(b)(5)
of the Act,7 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.
The Exchange believes the proposed
rule change will impose no 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 states that no written
comments were solicited or received
with respect to the proposed rule
change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 35 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which NYSE Arca consents, the
Commission will:
A. By order approve such proposed
rule change, or
B. institute proceedings to determine
whether the proposed rule change
should be disapproved.
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 (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–NYSEArca–2007–122 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–2007–122. 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, 100 F Street, NE, Washington, DC
20549, on official business days
between the hours of 10 a.m. and 3 p.m.
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–NYSEArca–2007–122 and
should be submitted on or before
January 2, 2008.
5 See
id.
U.S.C. 78f(b).
7 15 U.S.C. 78f(b)(5).
6 15
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70641
E:\FR\FM\12DEN1.SGM
12DEN1
70642
Federal Register / Vol. 72, No. 238 / Wednesday, December 12, 2007 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–23971 Filed 12–11–07; 8:45 am]
BILLING CODE 8011–01–P
DEPARTMENT OF STATE
[Public Notice 6023]
Bureau of Political-Military Affairs;
Statutory Debarment Under the Arms
Export Control Act and the
International Traffic in Arms
Regulations
mstockstill on PROD1PC66 with NOTICES
ACTION:
Notice.
SUMMARY: Notice is hereby given that
the Department of State has imposed
statutory debarment pursuant to
§ 127.7(c) of the International Traffic in
Arms Regulations (‘‘ITAR’’) (22 CFR
Parts 120 to 130) on persons convicted
of violating or conspiring to violate
Section 38 of the Arms Export Control
Act, as amended, (‘‘AECA’’) (22 U.S.C.
2778).
DATES: Effective Date: Date of conviction
as specified for each person.
FOR FURTHER INFORMATION CONTACT:
David Trimble, Director, Office of
Defense Trade Controls Compliance,
Bureau of Political-Military Affairs,
Department of State (202) 663–2980.
SUPPLEMENTARY INFORMATION: Section
38(g)(4) of the AECA, 22 U.S.C.
2778(g)(4), prohibits the Department of
State from issuing licenses or other
approvals for the export of defense
articles or defense services where the
applicant, or any party to the export, has
been convicted of violating certain
statutes, including the AECA. In
implementing this provision, section
127.7 of the ITAR provides for
‘‘statutory debarment’’ of any person
who has been convicted of violating or
conspiring to violate the AECA. Persons
subject to statutory debarment are
prohibited from participating directly or
indirectly in the export of defense
articles, including technical data, or in
the furnishing of defense services for
which a license or other approval is
required.
Statutory debarment is based solely
upon conviction in a criminal
proceeding, conducted by a United
States Court, and as such the
administrative debarment procedures
outlined in Part 128 of the ITAR are not
applicable.
8 17
CFR 200.30–3(a)(12).
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15:54 Dec 11, 2007
Jkt 214001
The period for debarment will be
determined by the Assistant Secretary
for Political-Military Affairs based on
the underlying nature of the violations,
but will generally be for three years
from the date of conviction. At the end
of the debarment period, export
privileges may be reinstated only at the
request of the debarred person followed
by the necessary interagency
consultations, after a thorough review of
the circumstances surrounding the
conviction, and a finding that
appropriate steps have been taken to
mitigate any law enforcement concerns,
as required by section 38(g)(4) of the
AECA. Unless export privileges are
reinstated, however, the person remains
debarred.
Department of State policy permits
debarred persons to apply to the
Director, Office of Defense Trade
Controls Compliance, for reinstatement
beginning one year after the date of the
debarment. Any decision to grant
reinstatement can be made only after the
statutory requirements under section
38(g)(4) of the AECA have been
satisfied.
Exceptions, also known as transaction
exceptions, may be made to this
debarment determination on a case-bycase basis at the discretion of the
Assistant Secretary of State for PoliticalMilitary Affairs, after consulting with
the appropriate U.S. agencies. However,
such an exception would be granted
only after a full review of all
circumstances, paying particular
attention to the following factors:
Whether an exception is warranted by
overriding U.S. foreign policy or
national security interests; whether an
exception would further law
enforcement concerns that are
consistent with the foreign policy or
national security interests of the United
States; or whether other compelling
circumstances exist that are consistent
with the foreign policy or national
security interests of the United States,
and that do not conflict with law
enforcement concerns. Even if
exceptions are granted, the debarment
continues until subsequent
reinstatement.
Pursuant to section 38(g)(4) of the
AECA and Section 127.7(c) of the ITAR,
the following persons are statutorily
debarred as of the date of their AECA
conviction:
(1) L&M Manufacturing Corporation,
May 22, 2007, U.S. District Court,
District of Connecticut, Case
#3:04CR125;
(2) Nesco NY, Inc., May 22, 2007, U.S.
District Court, District of
Connecticut, Case #3:04CV125;
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Frm 00084
Fmt 4703
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(3) Alejandro Felix-Canez, January 13,
2006, U.S. District Court, District of
Arizona, Case #CR05–00965–002–
PHX–ROS;
(4) Yssouf Diabate, May 9, 2007, U.S.
District Court, Southern District
California, Case #06CR2161–LAB;
(5) Ronald W. Wiseman, November 1,
2006, U.S. District Court, District of
Columbia, Case #05–0152–01(JR);
(6) Gustavo Gonzalez, Jr., November 3,
2006, U.S. District Court, Southern
District of Texas, Case
#1:06CR00529–001;
(7) Carlos Ivan Deblas, February 6, 2007,
U.S. District Court, Southern
District of Texas, Case
#1:06CR00663–001;
(8) Francisco Jimenez Briceno, February
6, 2007, District Court, Southern
District of Texas, Case
#1:06CR00663–002;
(9) Balbina Morales-Oscoy, February 21,
2007, District Court, Southern
District of Texas, Case
#7:06CR00776–001;
(10) Pedro Martinez-Carrillo, June 21,
2007, District Court, Southern
District of Texas, Case
#1:07CR00039–001;
(11) Lorenzo Sanchez-Castruita, January
19, 2007, District Court, Western
District of Texas, Case #P–06–CR–
213 (01) RAJ;
(12) Ovet Chavira, March 5, 2007,
District Court, Western District of
Texas, Case #4:06–CR–00220–001
RAJ;
(13) Miguel Loya, May 29, 2007, District
Court, Western District of Texas,
Case #4:06–CR–00279–001; and
(14) Jeffrey Roll, June 8, 2007, District
Court, Southern District of Indiana,
Case #1:07CR00014–001.
As noted above, at the end of the threeyear period following the date of
conviction, the above named persons
remain debarred unless export
privileges are reinstated.
Debarred persons are generally
ineligible to participate in activity
regulated under the ITAR (see e.g.,
sections 120.1(c) and (d), and 127.11(a)).
Also, under section 127.1(c) of the
ITAR, any person who has knowledge
that another person is subject to
debarment or is otherwise ineligible
may not, without disclosure to and
written approval from the Directorate of
Defense Trade Controls, participate,
directly or indirectly, in any export in
which such ineligible person may
benefit therefrom, or have a direct or
indirect interest therein.
This notice is provided for purposes
of making the public aware that the
persons listed above are prohibited from
participating directly or indirectly in
E:\FR\FM\12DEN1.SGM
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]]>Agencies
[Federal Register Volume 72, Number 238 (Wednesday, December 12, 2007)]
[Notices]
[Pages 70640-70642]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-23971]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-56907; File No. SR-NYSEArca-2007-122]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
of Proposed Rule Change Relating to Certain Modifications to the
Initial Listing Standards for Index-Linked Securities
December 5, 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 28, 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, II,
and III below, which Items have been substantially prepared by the
Exchange. The Commission is publishing this notice to solicit comments
on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend NYSE Arca Equities Rule 5.2(j)(6),
the Exchange's listing standards for Equity Index-Linked Securities,
Commodity-Linked Securities, and Currency-Linked Securities
(collectively, ``Index-Linked Securities'').\3\ The text of the
proposed rule change is available at the Exchange, the Commission's
Public Reference Room, and https://www.nyse.com.
---------------------------------------------------------------------------
\3\ NYSE Arca Equities Rule 5.2(j)(6) defines Equity Index-
Linked Securities to be 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 (an ``Equity Reference
Asset''). Commodity-Linked Securities are securities that provide
for the payment at maturity of a cash amount based on the
performance of one or more physical commodities or commodity
futures, options or other commodity derivatives or Commodity-Based
Trust Shares (as defined in NYSE Arca Equities Rule 8.201), or a
basket or index of any of the foregoing (a ``Commodity Reference
Asset''). Currency-Linked Securities are securities that provide for
the payment at maturity of a cash amount based on the performance of
one or more currencies, or options or currency futures or other
currency derivatives or Currency Trust Shares (as defined in NYSE
Arca Equities Rule 8.202), or a basket or index of any of the
foregoing (a ``Currency Reference Asset,'' and together with Equity
Reference Asset and Commodity Reference Asset, collectively, a
``Reference Asset'').
---------------------------------------------------------------------------
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of, and basis for, the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
Sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend one of the requirements of NYSE Arca
Equities Rule 5.2(j)(6)(A), which sets
[[Page 70641]]
forth the listing requirements applicable to all types of Index-Linked
Securities to be listed and traded on the Exchange, to provide for
greater flexibility in the listing criteria for such securities.
Currently, NYSE Arca Equities Rule 5.2(j)(6)(A)(d) provides that the
payment at maturity of a cash amount for Index-Linked Securities may or
may not provide for a multiple of the positive performance of an
underlying Reference Asset, and in no event will payment at maturity be
based on a multiple of the negative performance of an underlying
Reference Asset.
The Exchange proposes to amend NYSE Arca Equities Rule
5.2(j)(6)(A)(d) to: (a) Allow the Exchange to consider for listing and
trading Index-Linked Securities that provide for payment at maturity
based on a multiple of the direct or inverse performance of an
underlying Reference Asset; and (b) provide that in no event will a
loss or negative payment at maturity be accelerated by a multiple that
exceeds twice the performance of an underlying Reference Asset. The
Exchange proposes these changes in order to permit the listing and
trading of Index-Linked Securities that employ investment strategies
similar or analogous to certain exchange-traded funds like the Short
Funds and UltraShort Funds of the ProShares Trust and the Inverse Funds
and Leveraged Inverse Funds of the Rydex ETF Trust, each of which trade
on the Exchange pursuant to unlisted trading privileges (``UTP'') under
NYSE Arca Equities Rule 5.2(j)(3).\4\ The Short Funds and Inverse Funds
seek daily investment results, before fees and expenses, that
correspond to the inverse or opposite of the daily performance (-100%)
of the respective underlying indexes, and the Ultra Short Funds and
Leveraged Inverse Funds seek daily investment results, before fees and
expenses, that correspond to twice the inverse or opposite of the daily
performance (-200%) of the respective underlying indexes.
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release Nos. 56763 (November 7,
2007), 72 FR 64103 (November 14, 2007) (SR-NYSEArca-2007-81)
(approving the trading of shares of funds of the Rydex ETF Trust
pursuant to UTP); 56601 (October 2, 2007), 72 FR 57625 (October 10,
2007) (SR-NYSEArca-2007-79) (approving the trading shares of eight
funds of the ProShares Trust based on international equity indexes
pursuant to UTP); 55125 (January 18, 2007), 72 FR 3462 (January 25,
2007) (SR-NYSEArca-2006-87) (approving the trading of shares of 81
funds of the ProShares Trust pursuant to UTP); and 54026 (June 21,
2006), 71 FR 36850 (June 28, 2006) (SR-PCX-2005-115) (approving the
trading of shares of certain other funds of the ProShares Trust
pursuant to UTP).
---------------------------------------------------------------------------
The Exchange believes that these changes will allow greater
flexibility in the listing and trading of Index-Linked Securities and
offer investors additional investment options. The Exchange believes
that investors will continue to be protected because the payment at
maturity cannot be based on a multiple that exceeds twice the inverse
performance of an underlying Reference Asset.\5\
---------------------------------------------------------------------------
\5\ See id.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\6\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\7\ 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.
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\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange believes the proposed rule change will impose no
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 states that no written comments were solicited or
received with respect to the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Within 35 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which NYSE Arca consents, the Commission will:
A. By order approve such proposed rule change, or
B. institute proceedings to determine whether the proposed rule
change should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-NYSEArca-2007-122 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-2007-122. 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, 100 F Street,
NE, Washington, DC 20549, on official business days between the hours
of 10 a.m. and 3 p.m. 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-NYSEArca-2007-122 and should
be submitted on or before January 2, 2008.
[[Page 70642]]
For the Commission, by the Division of Trading and Markets, pursuant
to delegated authority.\8\
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\8\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-23971 Filed 12-11-07; 8:45 am]
BILLING CODE 8011-01-P
