Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To List and Trade the Opta Exchange-Traded Notes Due 2038, 10084-10086 [E8-3465]
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Federal Register / Vol. 73, No. 37 / Monday, February 25, 2008 / Notices
and a national market system, and in
general to protect investors and the
public interest. The Commission
believes that this proposal should
benefit investors by increasing
competition among markets that trade
the Units.
In addition, the Commission finds
that the proposal is consistent with
Section 12(f) of the Act,16 which permits
an exchange to trade, pursuant to UTP,
a security that is listed and registered on
another exchange.17 The Commission
notes that it previously approved the
listing and trading of the Units on
Amex.18 The Commission also finds that
the proposal is consistent with Rule
12f–5 under the Act,19 which provides
that an exchange shall not extend UTP
to a security unless the exchange has in
effect a rule or rules providing for
transactions in the class or type of
security to which the exchange extends
UTP. The Exchange has represented that
it meets this requirement because it
deems the Units to be equity securities,
thus rendering trading in the Units
subject to the Exchange’s existing rules
governing the trading of equity
securities.
The Commission further believes that
the proposal is consistent with Section
11A(a)(1)(C)(iii) of the Act,20 which sets
forth Congress’ finding that it is in the
public interest and appropriate for the
protection of investors and the
maintenance of fair and orderly markets
to assure the availability to brokers,
dealers, and investors of information
with respect to quotations for and
transactions in securities. Quotations for
and last-sale information regarding the
Units are disseminated through the
facilities of the CTA and the
Consolidated Quotation System. In
addition, Amex will calculate and
disseminate the Indicative Partnership
Value per Unit for each Partnership
through the facilities of the
Consolidated Tape Association at least
every 15 seconds throughout the Amex
trading hours for the Units. Amex will
also make available on its Web site daily
trading volume, the closing prices, and
the NAV. Web site disclosure of
16 15
U.S.C. 78l(f).
12(a) of the Act, 15 U.S.C. 78l(a),
generally prohibits a broker-dealer from trading a
security on a national securities exchange unless
the security is registered on that exchange pursuant
to Section 12 of the Act. Section 12(f) of the Act
excludes from this restriction trading in any
security to which an exchange ‘‘extends UTP.’’
When an exchange extends UTP to a security, it
allows its members to trade the security as if it were
listed and registered on the exchange even though
it is not so listed and registered.
18 See supra note 4.
19 17 CFR 240.12f–5.
20 15 U.S.C. 78k–1(a)(1)(C)(iii).
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17 Section
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portfolio holdings for both Funds will
be made daily. Finally, quotations and
last-sale information regarding the
Futures Contracts are widely
disseminated through a variety of
market data vendors worldwide,
including Bloomberg and Reuters.
The Commission also believes that the
proposal appears reasonably designed to
preclude trading of the Units if
transparency is impaired or there is
unfair dissemination of the NAV.
Trading in the Units will be subject to
Nasdaq Rule 4120(b), which provides
that, if the listing market halts trading
when the IIV or value of the underlying
index is not being calculated or
disseminated, the Exchange also would
halt trading. Nasdaq will halt trading in
the Units of a Partnership if it learns
that the listing market halts trading
because the NAV is not being
disseminated to all market participants
at the same time.
In support of this proposal, the
Exchange has made the following
additional representations:
1. The Exchange’s surveillance
procedures are adequate to properly
monitor Exchange trading of the Units
in all trading sessions and to deter and
detect violations of Exchange rules.
2. Prior to the commencement of
trading, the Exchange would inform its
members in an Information Bulletin of
the special characteristics and risks
associated with trading the Units.
3. The Information Bulletin also
would discuss the requirement that
members deliver a prospectus to
investors purchasing newly issued Units
prior to or concurrently with the
confirmation of a transaction.
This approval order is based on the
Exchange’s representations.
The Commission notes that, if the
Units should be delisted by the listing
exchange, the Exchange would no
longer have authority to trade the Units
pursuant to this order.
The Commission finds good cause for
approving this proposal before the
thirtieth day after the publication of
notice thereof in the Federal Register.
As noted above, the Commission
previously found that the listing and
trading of the Shares on Amex is
consistent with the Act. The
Commission presently is not aware of
any regulatory issue that should cause it
to revisit this finding or would preclude
the trading of the Units on the Exchange
pursuant to UTP. Therefore, accelerating
approval of this proposal should benefit
investors by creating, without undue
delay, additional competition in the
market for the Units.
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Fmt 4703
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It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,21 that the
proposed rule change (SR–NASDAQ–
2008–010) be, and it hereby is, approved
on an accelerated basis.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.22
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–3431 Filed 2–22–08; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57349; File No. SR–
NYSEArca–2008–22]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To List and Trade the
Opta Exchange-Traded Notes Due 2038
February 19, 2008
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 February
19, 2008, 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. NYSE Arca filed the proposal
pursuant to Section 19(b)(3)(A) of the
Act 3 and Rule 19b–4(f)(6) thereunder,4
which renders the proposal effective
upon filing with the Commission. 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 list and
trade the Opta Exchange-Traded Notes
due 2038 (‘‘Notes’’). The Notes are
linked to the S&P Listed Private Equity
Index Net Return (U.S. dollar)
(‘‘Index’’). The text of the proposed rule
change is available at the Exchange, the
Commission’s Public Reference Room,
and https://www.nyse.com.
21 15
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.196–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6).
22 17
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Federal Register / Vol. 73, No. 37 / Monday, February 25, 2008 / Notices
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
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1. Purpose
The Exchange proposes to list and
trade the Notes, which are linked to the
Index, pursuant to NYSE Arca Equities
Rule 5.2(j)(6).5 The Notes are senior
unsecured debt obligations of Lehman
Brothers Holdings Inc. (‘‘Lehman’’). The
Index is comprised of stocks of the 30
leading listed private equity companies
that meet certain size, liquidity,
exposure, and activity requirements
(each an ‘‘Index Component’’ and,
collectively, the ‘‘Index Components’’).
The Index is designed to provide
tradable exposure to the leading
publicly listed companies in the private
equity sector. The Index includes North
American, European, and Asia-Pacific
region private equity stocks that are
trading on developed market exchanges.
The Exchange submits this proposed
rule change because the Index does not
meet all of the ‘‘generic’’ listing
requirements of NYSE Arca Equities
Rule 5.2(j)(6)(B)(I) applicable to the
listing of Equity Index-Linked
Securities.6 The Index meets all such
requirements, except for those set forth
in NYSE Arca Equities Rule
5 NYSE Arca Equities Rule 5.2(j)(6) sets forth the
Exchange’s generic listing standards for, among
others, Equity Index-Linked Securities, which are
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.
See NYSE Arca Equities Rule 5.2(j)(6).
6 The generic listing requirements under NYSE
Arca Equities Rule 5.2(j)(6)(B)(I) permit the listing
and trading of Equity Index-Linked Securities
pursuant to Rule 19b–4(e) under the Act (17 CFR
240.19b–4(e)). 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 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 derivatives securities product, and the SRO
has a surveillance program for the product class.
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5.2(j)(6)(B)(I)(1)(b)(ii).7 The Exchange
represents that: (1) Except for NYSE
Arca Equities Rule
5.2(j)(6)(B)(I)(1)(b)(ii), the Notes
currently satisfy all of the generic listing
standards under NYSE Arca Equities
Rule 5.2(j)(6); (2) the continued listing
standards under NYSE Arca Equities
Rules 5.2(j)(6) shall apply to the Notes;
and (3) Lehman is required to comply
with Rule 10A–3 under the Act 8; for the
initial and continued listing of the
Notes. In addition, the Exchange
represents that the Notes will comply
with all other requirements applicable
to Equity Index-Linked Securities
including, but not limited to,
requirements relating to the
dissemination of key information (e.g.,
the Index value and intraday indicative
value), Exchange rules governing the
trading of equity securities, trading
hours, trading halts, surveillance, and
Information Bulletin to ETP Holders, as
set forth in prior Commission orders
approving the generic listing rules, and
amendments thereto, applicable to the
listing and trading of Index-Linked
Securities, generally, and Equity IndexLinked Securities, in particular.9
The Exchange states that detailed
descriptions of the Notes, the Index
(including the methodology used to
determine the composition of the
Index), fees, redemption procedures and
payment at redemption, payment at
maturity, taxes, and risk factors relating
to the Notes will be available in the
Registration Statement 10 or on the Web
7 NYSE Arca Equities Rule 5.2(j)(6)(B)(I)(1)(b)(ii)
provides that each component security of the
underlying index must have trading volume in each
of the last six months of not less than 1,000,000
shares per month, except that for each of the lowest
dollar-weighted component securities in the index
that, in the aggregate, account for no more than 10%
of the dollar weight of the index, the trading
volume must be at least 500,000 shares per month
in each of the last six months. The Exchange
represents that, GIMV NV, a component security
which represented 1.4% of the dollar weight of the
Index as of January 31, 2008, had a trading volume
of 461,498 shares in September 2007, which is
below the 500,000 shares requirement.
8 17 CFR 240.10A–3.
9 See, e.g., Securities Exchange Act Release Nos.
56637 (October 10, 2007), 72 FR 58704 (October 16,
2007) (SR–NYSEArca–2007–92) (approving
conforming amendments to the generic listing
standards for Equity Index-Linked Securities);
57132 (January 11, 2008), 73 FR 3300 (January 17,
2008) (SR–NYSEArca–2007–125) (approving
amendments to the continued listing standards for
Equity Index-Linked Securities); 56838 (November
26, 2007), 72 FR 67774 (November 30, 2007) (SR–
NYSEArca–2007–118) (approving amendments
relating to indexes underlying Equity Index-Linked
Securities); and 56879 (December 3, 2007), 72 FR
69271 (December 7, 2007) (SR–NYSEArca–2007–
110) (approving amendments to the initial listing
and trading standards for Equity Index-Linked
Securities).
10 See Pricing Supplement to Registration
Statement filed by Lehman on February 14, 2008
(File No. 333–134553).
PO 00000
Frm 00102
Fmt 4703
Sfmt 4703
10085
site for the Notes (https://
www.optaetn.com), as applicable.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,11 in general, and
furthers the objectives of Section 6(b)(5)
of the Act,12 in particular, in that it is
designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
facilitating transactions in securities,
and to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system. The Exchange believes that it
has developed adequate trading rules,
procedures, surveillance programs, and
listing standards for the listing and
trading of the Notes, which promote
investor protection and the public
interest. The Exchange notes that the
Notes will be subject to all applicable
requirements of NYSE Arca Equities
Rule 5.2(j)(6), with the single exception
as noted above.
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 states that written
comments on the proposed rule change
were neither solicited nor received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change: (1) Does not significantly affect
the protection of investors or the public
interest; (2) does not impose any
significant burden on competition; and
(3) by its terms does not become
operative for 30 days after the date of
this filing, or such shorter time as the
Commission may designate if consistent
with the protection of investors and the
public interest, the proposed rule
change has become effective pursuant to
Section 19(b)(3)(A) of the Act 13 and
Rule 19b–4(f)(6) thereunder.14
11 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
13 15 U.S.C. 78s(b)(3)(A).
14 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires a self-regulatory organization to
12 15
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10086
Federal Register / Vol. 73, No. 37 / Monday, February 25, 2008 / Notices
rfrederick on PROD1PC67 with NOTICES
A proposed rule change filed under
Rule 19b–4(f)(6) normally does not
become operative for 30 days after the
date of filing. However, Rule 19b–
4(f)(6)(iii) permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest. The
Exchange requests that the Commission
waive the 30-day operative delay so that
the Exchange can list and trade the
Notes immediately. The Exchange states
that the proposed rule change does not
significantly affect the protection of
investors or the public interest and does
not impose any significant burden on
competition. The Exchange further
believes that the proposal is noncontroversial because, although the
Index fails to meet the requirements set
forth in NYSE Arca Equities Rule
5.2(j)(6)(B)(I)(1)(b)(ii) by a small amount,
the Notes currently satisfy all of the
other applicable generic listing
standards under NYSE Arca Equities
Rule 5.2(j)(6) and all other requirements
applicable to Equity Index-Linked
Securities, as set forth in prior
Commission orders approving the
generic listing rules, including
amendments thereto, relating to the
listing and trading of Index-Linked
Securities, generally, and Equity IndexLinked Securities, in particular. The
Exchange notes that it has developed
adequate trading rules, procedures,
surveillance programs, and listing
standards for the listing and trading of
the Notes.
The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest.15
Given that the Notes comply with all of
NYSE Arca’s generic listing standards
for Equity Index-Linked Securities
(except for narrowly missing the
requirement of NYSE Arca Equities Rule
5.2(j)(6)(B)(I)(1)(b)(ii)), the listing and
trading of the Notes by NYSE Arca does
not appear to present any novel or
significant regulatory issues or impose
any significant burden on competition.
For these reasons, the Commission
designates the proposed rule change as
operative upon filing.
At any time within 60 days of the
filing of the proposed rule change, the
provide the Commission with written notice of its
intent to file the proposed rule change, along with
a brief description and text of the proposed rule
change, at least five business days prior to the date
of filing of the proposed rule change, or such
shorter time as designated by the Commission. The
Exchange has fulfilled this requirement.
15 For purposes only of waiving the 30-day
operative delay, the Commission has also
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
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14:34 Feb 22, 2008
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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.
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 rulecomments@sec.gov. Please include File
Number SR–NYSEArca–2008–22 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–2008–22. 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–2008–22 and
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should be submitted on or before March
17, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–3465 Filed 2–22–08; 8:45 am]
BILLING CODE 8011–01–P
TENNESSEE VALLEY AUTHORITY
Paperwork Reduction Act of 1995, as
Amended by Public Law 104–13;
Submission for OMB Review;
Comment Request
AGENCY:
ACTION:
Tennessee Valley Authority.
Proposed collection; comment
request.
SUMMARY: The proposed information
collection described below will be
submitted to the Office of Management
and Budget (OMB) for review, as
required by the Paperwork Reduction
Act of 1995 (44 U.S.C. chapter 35, as
amended). The Tennessee Valley
Authority is soliciting public comments
on this proposed collection as provided
by 5 CFR 1320.8(d)(1). Requests for
information, including copies of the
information collection proposed and
supporting documentation, should be
directed to the Agency Clearance
Officer: Mark R. Winter, Tennessee
Valley Authority, 1101 Market Street
(EB 5B), Chattanooga, Tennessee 37402–
2801; (423) 751–6004.
Comments should be sent to the
Agency Clearance Officer no later than
April 25, 2008.
SUPPLEMENTARY INFORMATION:
Type of Request: Regular Submission.
Title of Information Collection: TVA
Valley Relations Stakeholder Survey.
Frequency of Use: On occasion.
Small Business or Organizations
Affected: Yes.
Estimated Number of Annual
Responses: 600.
Estimated Total Annual Burden
Hours: 100.
Estimated Average Burden Hours per
Response: 10 minutes.
Need for and Use of Information: This
information collection will obtain
feedback from key stakeholders. The
information collected will help TVA
evaluate its performance and identify
16 17
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CFR 200.30–3(a)(12).
25FEN1
]]>Agencies
[Federal Register Volume 73, Number 37 (Monday, February 25, 2008)]
[Notices]
[Pages 10084-10086]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-3465]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57349; File No. SR-NYSEArca-2008-22]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To List and Trade
the Opta Exchange-Traded Notes Due 2038
February 19, 2008
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 February 19, 2008, 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.
NYSE Arca filed the proposal pursuant to Section 19(b)(3)(A) of the Act
\3\ and Rule 19b-4(f)(6) thereunder,\4\ which renders the proposal
effective upon filing with the Commission. 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 240.196-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to list and trade the Opta Exchange-Traded
Notes due 2038 (``Notes''). The Notes are linked to the S&P Listed
Private Equity Index[supreg] Net Return (U.S. dollar) (``Index''). The
text of the proposed rule change is available at the Exchange, the
Commission's Public Reference Room, and https://www.nyse.com.
[[Page 10085]]
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 list and trade the Notes, which are linked
to the Index, pursuant to NYSE Arca Equities Rule 5.2(j)(6).\5\ The
Notes are senior unsecured debt obligations of Lehman Brothers Holdings
Inc. (``Lehman''). The Index is comprised of stocks of the 30 leading
listed private equity companies that meet certain size, liquidity,
exposure, and activity requirements (each an ``Index Component'' and,
collectively, the ``Index Components''). The Index is designed to
provide tradable exposure to the leading publicly listed companies in
the private equity sector. The Index includes North American, European,
and Asia-Pacific region private equity stocks that are trading on
developed market exchanges.
---------------------------------------------------------------------------
\5\ NYSE Arca Equities Rule 5.2(j)(6) sets forth the Exchange's
generic listing standards for, among others, Equity Index-Linked
Securities, which are 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. See NYSE Arca Equities Rule
5.2(j)(6).
---------------------------------------------------------------------------
The Exchange submits this proposed rule change because the Index
does not meet all of the ``generic'' listing requirements of NYSE Arca
Equities Rule 5.2(j)(6)(B)(I) applicable to the listing of Equity
Index-Linked Securities.\6\ The Index meets all such requirements,
except for those set forth in NYSE Arca Equities Rule
5.2(j)(6)(B)(I)(1)(b)(ii).\7\ The Exchange represents that: (1) Except
for NYSE Arca Equities Rule 5.2(j)(6)(B)(I)(1)(b)(ii), the Notes
currently satisfy all of the generic listing standards under NYSE Arca
Equities Rule 5.2(j)(6); (2) the continued listing standards under NYSE
Arca Equities Rules 5.2(j)(6) shall apply to the Notes; and (3) Lehman
is required to comply with Rule 10A-3 under the Act \8\; for the
initial and continued listing of the Notes. In addition, the Exchange
represents that the Notes will comply with all other requirements
applicable to Equity Index-Linked Securities including, but not limited
to, requirements relating to the dissemination of key information
(e.g., the Index value and intraday indicative value), Exchange rules
governing the trading of equity securities, trading hours, trading
halts, surveillance, and Information Bulletin to ETP Holders, as set
forth in prior Commission orders approving the generic listing rules,
and amendments thereto, applicable to the listing and trading of Index-
Linked Securities, generally, and Equity Index-Linked Securities, in
particular.\9\
---------------------------------------------------------------------------
\6\ The generic listing requirements under NYSE Arca Equities
Rule 5.2(j)(6)(B)(I) permit the listing and trading of Equity Index-
Linked Securities pursuant to Rule 19b-4(e) under the Act (17 CFR
240.19b-4(e)). 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 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 derivatives securities product, and the SRO has a
surveillance program for the product class.
\7\ NYSE Arca Equities Rule 5.2(j)(6)(B)(I)(1)(b)(ii) provides
that each component security of the underlying index must have
trading volume in each of the last six months of not less than
1,000,000 shares per month, except that for each of the lowest
dollar-weighted component securities in the index that, in the
aggregate, account for no more than 10% of the dollar weight of the
index, the trading volume must be at least 500,000 shares per month
in each of the last six months. The Exchange represents that, GIMV
NV, a component security which represented 1.4% of the dollar weight
of the Index as of January 31, 2008, had a trading volume of 461,498
shares in September 2007, which is below the 500,000 shares
requirement.
\8\ 17 CFR 240.10A-3.
\9\ See, e.g., Securities Exchange Act Release Nos. 56637
(October 10, 2007), 72 FR 58704 (October 16, 2007) (SR-NYSEArca-
2007-92) (approving conforming amendments to the generic listing
standards for Equity Index-Linked Securities); 57132 (January 11,
2008), 73 FR 3300 (January 17, 2008) (SR-NYSEArca-2007-125)
(approving amendments to the continued listing standards for Equity
Index-Linked Securities); 56838 (November 26, 2007), 72 FR 67774
(November 30, 2007) (SR-NYSEArca-2007-118) (approving amendments
relating to indexes underlying Equity Index-Linked Securities); and
56879 (December 3, 2007), 72 FR 69271 (December 7, 2007) (SR-
NYSEArca-2007-110) (approving amendments to the initial listing and
trading standards for Equity Index-Linked Securities).
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The Exchange states that detailed descriptions of the Notes, the
Index (including the methodology used to determine the composition of
the Index), fees, redemption procedures and payment at redemption,
payment at maturity, taxes, and risk factors relating to the Notes will
be available in the Registration Statement \10\ or on the Web site for
the Notes (https://www.optaetn.com), as applicable.
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\10\ See Pricing Supplement to Registration Statement filed by
Lehman on February 14, 2008 (File No. 333-134553).
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2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\11\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\12\ in particular, in that it
is designed to prevent fraudulent and manipulative acts and practices,
to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in facilitating
transactions in securities, and to remove impediments to and perfect
the mechanism of a free and open market and a national market system.
The Exchange believes that it has developed adequate trading rules,
procedures, surveillance programs, and listing standards for the
listing and trading of the Notes, which promote investor protection and
the public interest. The Exchange notes that the Notes will be subject
to all applicable requirements of NYSE Arca Equities Rule 5.2(j)(6),
with the single exception as noted above.
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\11\ 15 U.S.C. 78f(b).
\12\ 15 U.S.C. 78f(b)(5).
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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 states that written comments on the proposed rule
change were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change: (1) Does not
significantly affect the protection of investors or the public
interest; (2) does not impose any significant burden on competition;
and (3) by its terms does not become operative for 30 days after the
date of this filing, or such shorter time as the Commission may
designate if consistent with the protection of investors and the public
interest, the proposed rule change has become effective pursuant to
Section 19(b)(3)(A) of the Act \13\ and Rule 19b-4(f)(6)
thereunder.\14\
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\13\ 15 U.S.C. 78s(b)(3)(A).
\14\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to provide the Commission
with written notice of its intent to file the proposed rule change,
along with a brief description and text of the proposed rule change,
at least five business days prior to the date of filing of the
proposed rule change, or such shorter time as designated by the
Commission. The Exchange has fulfilled this requirement.
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[[Page 10086]]
A proposed rule change filed under Rule 19b-4(f)(6) normally does
not become operative for 30 days after the date of filing. However,
Rule 19b-4(f)(6)(iii) permits the Commission to designate a shorter
time if such action is consistent with the protection of investors and
the public interest. The Exchange requests that the Commission waive
the 30-day operative delay so that the Exchange can list and trade the
Notes immediately. The Exchange states that the proposed rule change
does not significantly affect the protection of investors or the public
interest and does not impose any significant burden on competition. The
Exchange further believes that the proposal is non-controversial
because, although the Index fails to meet the requirements set forth in
NYSE Arca Equities Rule 5.2(j)(6)(B)(I)(1)(b)(ii) by a small amount,
the Notes currently satisfy all of the other applicable generic listing
standards under NYSE Arca Equities Rule 5.2(j)(6) and all other
requirements applicable to Equity Index-Linked Securities, as set forth
in prior Commission orders approving the generic listing rules,
including amendments thereto, relating to the listing and trading of
Index-Linked Securities, generally, and Equity Index-Linked Securities,
in particular. The Exchange notes that it has developed adequate
trading rules, procedures, surveillance programs, and listing standards
for the listing and trading of the Notes.
The Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public
interest.\15\ Given that the Notes comply with all of NYSE Arca's
generic listing standards for Equity Index-Linked Securities (except
for narrowly missing the requirement of NYSE Arca Equities Rule
5.2(j)(6)(B)(I)(1)(b)(ii)), the listing and trading of the Notes by
NYSE Arca does not appear to present any novel or significant
regulatory issues or impose any significant burden on competition. For
these reasons, the Commission designates the proposed rule change as
operative upon filing.
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\15\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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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.
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-2008-22 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-2008-22. 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-2008-22 and should
be submitted on or before March 17, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
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\16\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-3465 Filed 2-22-08; 8:45 am]
BILLING CODE 8011-01-P
