Self-Regulatory Organizations; Boston Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To List and Trade Options on Index Multiple ETFs and Index Inverse ETFs, 24618-24621 [E8-9782]
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Federal Register / Vol. 73, No. 87 / Monday, May 5, 2008 / Notices
and Retrieval (‘‘EDGAR’’) system.
Regulation S–T is only assigned one
burden hour for administrative
convenience because it does not directly
impose any information collection
requirements.
Written comments are invited on: (a)
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the
agency, including whether the
information will have practical utility;
(b) the accuracy of the agency’s estimate
of the burden imposed by the collection
of information; (c) ways to enhance the
quality, utility, and clarity of the
information collected; and (d) ways to
minimize the burden of the collection of
information on respondents, including
through the use of automated collection
techniques or other forms of information
technology. Consideration will be given
to comments and suggestions submitted
in writing within 60 days of this
publication.
Please direct your written comments
to R. Corey Booth, Director/Chief
Information Officer, Securities and
Exchange Commission, C/O Shirley
Martinson, 6432 General Green Way,
Alexandria, Virginia 22312; or send an
e-mail to: PRA_Mailbox@sec.gov.
Dated: April 28, 2008.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–9824 Filed 5–2–08; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
Proposed Collection; Comment
Request
Upon Written Request, Copies
Available From: Securities and
Exchange Commission, Office of
Investor Education and Advocacy,
Washington, DC 20549–0213.
rfrederick on PROD1PC67 with NOTICES
Extension:
Rule 236; OMB Control No. 3235–0095;
SEC File No. 270–118.
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.), the Securities
and Exchange Commission
(‘‘Commission’’) is soliciting comments
on the collection of information
summarized below. The Commission
plans to submit this existing collection
of information to the Office of
Management and Budget for extension
and approval.
Rule 236 (17 CFR 230.236) under the
Securities Act of 1933 (‘‘Securities Act’’)
(15 U.S.C. 77a et seq.) requires issuers
choosing to rely on an exemption from
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Securities Act registration for the
issuance of fractional shares, scrip
certificates or order forms, in
connection with a stock dividend, stock
split, reverse stock split, conversion,
merger or similar transaction, to furnish
specified information to the
Commission in writing at least 10 days
prior to the offering. The information is
needed to provide public notice that an
issuer is relying on the exemption.
Public companies are the likely
respondents. Approximately 10
respondents file the information
required by Rule 236 at an estimated 1.5
hours per response for a total of 15
annual burden hours.
Written comments are invited on: (a)
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the
agency, including whether the
information will have practical utility;
(b) the accuracy of the agency’s estimate
of the burden imposed by the collection
of information; (c) ways to enhance the
quality, utility, and clarity of the
information collected; and (d) ways to
minimize the burden of the collection of
information on respondents, including
through the use of automated collection
techniques or other forms of information
technology. Consideration will be given
to comments and suggestions submitted
in writing within 60 days of this
publication.
Please direct your written comments
to R. Corey Booth, Director/Chief
Information Officer, Securities and
Exchange Commission, C/O Shirley
Martinson, 6432 General Green Way,
Alexandria, Virginia 22312; or send an
e-mail to: PRA_Mailbox@sec.gov.
Dated: April 28, 2008.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–9825 Filed 5–2–08; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–57735; File No. SR–BSE–
2008–16]
Self-Regulatory Organizations; Boston
Stock Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To List and
Trade Options on Index Multiple ETFs
and Index Inverse ETFs
Pursuant to section 19(b)(1) of the
Securities Exchange Act of 1934
Frm 00089
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend the
Rules of the Boston Options Exchange
(‘‘BOX’’) to permit the initial and
continued listing and trading on BOX of
options on Index Multiple Exchange
Traded Fund Shares (‘‘Index Multiple
ETFs’’) and Index Inverse Exchange
Traded Fund Shares (‘‘Index Inverse
ETFs’’). The text of the proposed rule
change is available at the principal
office of the Exchange, the
Commission’s Public Reference Room,
and https://www.bostonstock.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. BSE
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 purpose of the proposed rule
change is to amend Sections 3 and 4 of
Chapter IV of the BOX Rules to enable
the listing and trading on BOX of
options on Index Multiple ETFs and
Index Inverse ETFs. An Index Multiple
1 15
April 29, 2008.
PO 00000
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on April 25,
2008, the Boston Stock Exchange, Inc.
(‘‘BSE’’ or ‘‘Exchange’’) 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.
The Exchange filed the proposed rule
change as a ‘‘non-controversial’’
proposed rule change 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.
Fmt 4703
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U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6).
2 17
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ETF seeks to provide investment results,
before fees and expenses, that
correspond to a specified multiple of the
percentage performance on a given day
of a particular foreign or domestic stock
index. An Index Inverse ETF seeks to
provide investment results, before fees
and expenses, that correspond to the
inverse (opposite) of the percentage
performance on a given day of a
particular foreign or domestic stock
index by a specified multiple. Index
Multiple ETFs and Index Inverse ETFs
differ from traditional ETFs in that they
do not merely correspond to the
performance of a given index, but rather
attempt to match a multiple or inverse
of such underlying index performance.
The ProShares Ultra Funds, which
currently trade on the American Stock
Exchange (‘‘Amex’’), are examples of
Index Multiple ETFs. The ProShares
Short Funds and Ultra Short Funds,
which are also currently listed for
trading on Amex, are examples of Index
Inverse ETFs.5
To achieve investment results that
provide either a positive multiple or
inverse of the benchmark index, Index
Multiple ETFs or Index Inverse ETFs
may hold a combination of financial
instruments, including, among other
things: Stock index futures contracts;
options on futures; options on securities
and indexes; equity caps, collars, and
floors; swap agreements; forward
contracts; repurchase agreements; and
reverse repurchase agreements
(collectively, ‘‘Financial Instruments’’).
The underlying portfolio of an Index
Multiple ETF generally will hold at least
85% of its assets in the component
securities of the underlying relevant
benchmark index. The remainder is
devoted to Financial Instruments that
are intended to create the additional
exposure to the underlying index
necessary to pursue its investment
objective. Typically, 100% of the value
of the portfolio underlying the Index
Inverse ETF will be devoted to Financial
Instruments and money market
5 The Ultra Funds are expected to gain, on a
percentage basis, approximately twice (200%) as
much as the underlying benchmark index and
should lose approximately twice (200%) as much
as the underlying benchmark index when such
prices decline. The Short Funds are expected to
achieve investment results, before fees and
expenses, that correspond to the inverse or opposite
(¥100%) of the daily performance of an underlying
benchmark index. Lastly, the UltraShort Funds are
expected to achieve investment results, before fees
and expenses, that correspond to twice the inverse
or opposite (¥200%) of the daily performance of
the underlying benchmark index. See Securities
Exchange Act Release No. 52553 (October 3, 2005),
70 FR 59100 (October 11, 2005) (SR–Amex–2004–
62). See also Securities Exchange Act Release No.
54040 (June 23, 2006), 71 FR 37629 (June 30, 2006)
(SR–Amex–2006–41).
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instruments, including U.S. government
securities and repurchase agreements
(the ‘‘Money Market Instruments’’).
Currently, Section 3(i) of Chapter IV
of the BOX Rules provides securities
deemed appropriate for options trading
shall include shares or other securities
(‘‘Fund Shares’’) 6 that represent
interests in registered investment
companies (or series thereof) organized
as open-end management investment
companies, unit investment trusts or
similar entities. These are principally
traded on a national securities exchange
or through the facilities of a national
securities association and are defined as
an ‘‘NMS stock’’ under Rule 600 of
Regulation NMS, and that hold
portfolios of securities comprising or
otherwise based on or representing
investments in broad-based indexes or
portfolios of securities (or that hold
securities in one or more other
registered investment companies that
themselves hold such portfolios of
securities) (‘‘Funds’’).
The Exchange proposes to amend
section 3 of Chapter IV of the BOX Rules
to expand the type of options that can
be listed and traded to include options
based on Index Multiple ETFs and
Index Inverse ETFs that may hold or
invest in any combination of securities,
Financial Instruments, and/or Money
Market Instruments. Index Multiple
ETFs and Index Inverse ETFs on which
Exchange-listed options are based must
continue to otherwise satisfy the listing
standards of section 3(i) of Chapter IV
of the BOX Rules. The Exchange also
proposes to make non-substantive,
clarifying changes to section 3(i) of
Chapter IV of the BOX Rules by
conforming the construction of this rule
to those of Amex and the International
Securities Exchange (‘‘ISE’’). The
Exchange notes that these changes are
not significant, and do not substantively
alter the listing standards found in
section 3 of Chapter IV of the BOX
Rules. Accordingly, in addition to
certain repositioning of existing rule
text, the Exchange also proposes to
remove the reference to a ‘‘national
securities association’’ in section 3(i) of
Chapter IV.
As set forth in proposed amended
section 3(i) of Chapter IV of the BOX
Rules, an Index Multiple ETF or Index
Inverse ETF on which an Exchangelisted option is based must be traded on
a national securities exchange and must
6 The Exchange also proposes to make technical
conforming changes to its current Sections 3, 4, and
6 of Chapter IV and Section 3 of Chapter V of the
BOX Rules to those of ISE and Amex. As a result,
and in the context of this filing, the Exchange refers
to Fund Shares as Exchange-Traded Fund Shares
hereafter.
PO 00000
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24619
be an ‘‘NMS stock’’ as defined under
Rule 600 of Regulation NMS. In
addition, such Index Multiple ETF and
Index Inverse ETF must meet either: (1)
The criteria and guidelines set forth in
paragraphs (a) and (b) of section 3,
Chapter IV of the BOX Rules; or (2) be
available for creation or redemption
each business day from or through the
issuing trust, investment company, or
other entity in cash or in kind at a price
related to net asset value. The
investment company shall provide that
shares may be created even though some
or all of the securities and/or cash (in
lieu of Financial Instruments) needed to
be deposited have not been received by
the investment company, provided that
the person obligated to deposit the
investment assets has undertaken to
deliver the shares and/or cash as soon
as possible and such undertaking has
been secured by the delivery and
maintenance of collateral consisting of
cash or cash equivalents satisfactory to
the issuer of the fund shares, all as
described in the fund shares’
prospectus.
Additionally, the Fund Shares must
also meet all of the following
conditions: (1) Any non-U.S. component
securities of the index or portfolio of
securities on which the Fund Shares are
based that are not subject to
comprehensive surveillance agreements
do not in aggregate represent more than
50% of the weight of the index or
portfolio; (2) component securities of an
index or portfolio of securities on which
the Fund Shares are based for which the
primary market is in any one country
that is not subject to a comprehensive
surveillance agreement do not represent
20% or more of the weight of the index;
and (3) component securities of an
index or portfolio of securities on which
the Fund Shares are based for which the
primary market is in any two countries
that are not subject to comprehensive
surveillance agreements do not
represent 33% or more of the weight of
the index.7
The Exchange also proposes to amend
section 4(h) of Chapter IV of the BOX
Rules to indicate that the index or
portfolio may consist of, among other
things, securities, Financial Instruments
and/or Money Market Instruments. In
proposing to make the Exchange’s Rules
conform to those of the Amex and ISE,
the Exchange also seeks to delete
reference to ‘‘national securities
association’’ set forth in section 4(h) of
Chapter IV of the BOX Rules.
Under the applicable continued
listing criteria for section 4(h) of
7 See existing Section 3(i) of Chapter IV of the
BOX Rules, items (i) to (iii).
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Chapter IV of the BOX Rules, options on
Fund Shares may be subject to the
suspension of opening transactions as
follows:
• Following the initial 12-month
period beginning with the
commencement of trading of the Fund
Shares, there are fewer than 50 record
and/or beneficial holders of the Fund
Shares for 30 or more consecutive
trading days;
• The value of the index or portfolio
of securities and/or Financial
Instruments and Money Market
Instrument, on which the Fund Shares
are based is no longer calculated or
available; or
• Such other event occurs or
condition exists that in the opinion of
the Exchange makes further dealing on
the Exchange inadvisable.
Additionally, an Index Multiple ETF
or Index Inverse ETF shall not be
deemed to meet requirements for
continued approval, and the Exchange
shall not open for trading any additional
series of option contracts of the class
covering such ETF, if: (1) The
underlying ETF is halted from trading
on its primary market; (2) the
underlying ETF is delisted in
accordance with the terms of Section
4(h) of Chapter IV; or (3) the value of the
index or portfolio on which the
underlying ETF is based is no longer
calculated or available.
The expansion of the types of
investments that may be held by Index
Multiple ETFs or Index Inverse ETFs
under Section 3(i) of Chapter IV of the
BOX Rules would not have any effect on
the rules pertaining to position and
exercise limits 8 or margin.9
The Exchange believes that this
proposal is necessary to enable the
Exchange to list and trade options on
the shares of the Ultra Fund, Short
Fund, and UltraShort Fund of the
ProShares Trust.10 The Exchange
believes the ability to trade options on
Index Multiple ETFs and Index Inverse
ETFs will provide investors with greater
risk management tools.
The Exchange represents that its
existing surveillance procedures
applicable to trading in options are
adequate to properly monitor the
trading in Index Multiple ETF options
and Index Inverse ETF options.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
section 6(b) of the Act,11 in general, and
8 See
Sections 7 and 9 of Chapter III of the BOX
Rules.
9 See Section 3 of Chapter XIII of the BOX Rules.
10 See supra note 5.
11 15 U.S.C. 78f(b).
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furthers the objectives of section 6(b)(5)
of the Act,12 in particular, in that it is
designed to promote just and equitable
principles of trade, to prevent
fraudulent and manipulative acts, and
to remove impediments to and perfect
the mechanism of a free and open
market and a national market system,
because the ability to trade options on
Index Multiple ETFs and Index Inverse
ETFs will provide investors with greater
risk management tools and, in general,
will allow for the protection of 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 would 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
Because the proposed rule change
does not: (i) Significantly affect the
protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days after the date of
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
subparagraph (f)(6) of Rule 19b–4
thereunder.14
The Exchange has requested that the
Commission waive the 30-day operative
delay and designate the proposed rule
change as operative upon filing. The
Commission believes that waiving the
30-day operative delay is consistent
with the protection of investors and the
public interest. The proposed rule
change is substantially similar to those
of other options exchanges that have
been previously approved by the
Commission 15 and does not appear to
12 15
U.S.C. 78f(b)(5).
U.S.C. 78s(b)(3)(A).
14 17 CFR 240.19b–4(f)(6). The Exchange has
satisfied the five-day pre-filing requirement of Rule
19b–4(f)(6)(iii).
15 See Securities Exchange Act Release Nos.
56871 (November 30, 2007), 72 FR 68924
(December 6, 2007) (SR–ISE–2007–87); 56715 (Oct.
29, 2007), 72 FR 62287 (November 2, 2007) (SR–
present any novel regulatory issues.
Therefore, the Commission designates
the proposal operative upon filing.16
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 the 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–BSE–2008–16 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–BSE–2008–16. 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
13 15
PO 00000
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CBOE–2007–119); and 56650 (October 12, 2007), 72
FR 59123 (October 18, 2007) (SR–Amex–2007–35).
16 For purposes only of waiving the operative
delay of this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
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Federal Register / Vol. 73, No. 87 / Monday, May 5, 2008 / Notices
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–BSE–2008–16 and should
be submitted on or before May 27, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8–9782 Filed 5–2–08; 8:45 am]
BILLING CODE 8010–01–P
24621
who wish to make oral comments
during the public comment section held
during the concluding session Tuesday
afternoon should request to be
Percent
scheduled by Thursday, May 15th. Each
individual will be limited to five
minutes, with the total oral comment
5.500
period not exceeding forty-five minutes.
2.750 Written comments should be submitted
by Tuesday, May 13th to allow time for
8.000 distribution to the Commission
members prior to the meeting. The
National Commission may be contacted
4.000 via e-mail at DCUNESCO@state.gov, or
via phone at (202) 663–0026. Its Web
site can be accessed at: https://
5.250
www.state.gov/p/io/unesco/.
Missouri: Camden, Greene, Hickory,
Laclede, Polk, Webster.
The Interest Rates are:
Homeowners with Credit Available
Elsewhere .................................
Homeowners without Credit Available Elsewhere .........................
Businesses with Credit Available
Elsewhere .................................
Businesses & Small Agricultural
Cooperatives without Credit
Available Elsewhere ..................
Other (Including Non-Profit Organizations) with Credit Available
Elsewhere .................................
Businesses and Non-Profit Organizations without Credit Available Elsewhere .........................
4.000
Dated: April 28, 2008.
Susanna Connaughton,
Executive Director, U.S. National Commission
for UNESCO, Department of State.
[FR Doc. E8–9836 Filed 5–2–08; 8:45 am]
[Disaster Declaration #11221 and #11222]
The number assigned to this disaster
for physical damage is 11221 B and for
economic injury is 11222 0.
The States which received an EIDL
Declaration # is Missouri.
Missouri Disaster #MO–00026
(Catalog of Federal Domestic Assistance
Numbers 59002 and 59008)
TENNESSEE VALLEY AUTHORITY
U.S. Small Business
Administration.
ACTION: Notice.
Dated: April 22, 2008.
Steven C. Preston,
Administrator.
[FR Doc. E8–9627 Filed 5–2–08; 8:45 am]
Environmental Impact Statement—
Northeastern Tributary Reservoirs
Land Management Plan, Tennessee
and Virginia
BILLING CODE 8025–01–M
AGENCY:
SMALL BUSINESS ADMINISTRATION
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AGENCY:
SUMMARY: This is a notice of an
Administrative declaration of a disaster
for the State of Missouri dated 04/22/
2008.
Incident: Severe Storm, Tornadoes,
High Winds, Hail and Flooding.
Incident Period: 03/30/2008 through
04/02/2008.
EFFECTIVE DATE: 04/22/2008.
Physical Loan Application Deadline
Date: 06/23/2008.
Economic Injury (EIDL) Loan
Application Deadline Date: 01/22/2009.
ADDRESSES: Submit completed loan
applications to: U.S. Small Business
Administration, Processing and
Disbursement Center, 14925 Kingsport
Road, Fort Worth, TX 76155.
FOR FURTHER INFORMATION CONTACT: A.
Escobar, Office of Disaster Assistance,
U.S. Small Business Administration,
409 3rd Street, SW., Suite 6050,
Washington, DC 20416.
SUPPLEMENTARY INFORMATION: Notice is
hereby given that as a result of the
Administrator’s disaster declaration,
applications for disaster loans may be
filed at the address listed above or other
locally announced locations.
The following areas have been
determined to be adversely affected by
the disaster:
Primary Counties: Dallas.
Contiguous Counties:
17 17
CFR 200.30–3(a)(12).
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BILLING CODE 4710–19–P
ACTION:
DEPARTMENT OF STATE
[Public Notice: 6183]
U.S. National Commission for UNESCO
Notice of Meeting
The Annual Meeting of the U.S.
National Commission for the United
Nations Educational, Scientific, and
Cultural Organization (UNESCO) will
take place on Monday, May 19, 2008
and Tuesday, May 20, 2008, at the
Marriott Georgetown University
Conference Hotel, Washington, DC
(3800 Reservoir Road, NW.). On
Monday, May 19 from 9 a.m. to 12 p.m.
and from 2 p.m. to 4:30 p.m. and on
Tuesday, May 20 from 9:15 a.m. to 11:45
a.m., the Commission will hold a series
of informational plenary sessions and
subject-specific committee and thematic
breakout sessions, which will be open to
the public. Additionally, on Tuesday,
May 20, 2008, the Commission will
meet from 1 p.m. until 2:30 p.m. to
discuss final recommendations, which
also will be open to the public.
Members of the public who wish to
attend any of these meetings should
contact the U.S. National Commission
for UNESCO no later than Thursday,
May 15th for further information about
admission, as seating is limited. Those
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Tennessee Valley Authority.
Notice of Intent.
SUMMARY: The Tennessee Valley
Authority (TVA) will prepare an
environmental impact statement (EIS)
addressing the impacts of various
alternatives for managing project lands
on seven TVA tributary reservoirs in
northeastern Tennessee and southwest
Virginia. Public comment is invited
concerning both the scope of the EIS
and environmental issues that should be
addressed as a part of this EIS.
DATES: Comments on the scope of the
EIS and the environmental issues that
should be addressed in the EIS should
be received on or before June 5, 2008.
ADDRESSES: Written comments should
be sent to Heather L. McGee, Tennessee
Valley Authority, Post Office Box 1010,
SB1H–M, Muscle Shoals, Alabama
35662–1010. Comments also may be
submitted on the TVA Web site at
https://www.tva.com/environment/
reports/ntrres, by phone at (866) 601–
4612, or by fax at (256) 386–2559.
FOR FURTHER INFORMATION CONTACT: D.
Chris Cooper, Tennessee Valley
Authority, 106 Tri-Cities Business Park
Drive, Gray, Tennessee 37813.
Telephone: (423) 585–2138. E-mail may
be sent to Northeastern_
Tributary_Reservoirs@tva.gov.
SUPPLEMENTARY INFORMATION:
E:\FR\FM\05MYN1.SGM
05MYN1
]]>Agencies
[Federal Register Volume 73, Number 87 (Monday, May 5, 2008)]
[Notices]
[Pages 24618-24621]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-9782]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57735; File No. SR-BSE-2008-16]
Self-Regulatory Organizations; Boston Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
To List and Trade Options on Index Multiple ETFs and Index Inverse ETFs
April 29, 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 April 25, 2008, the Boston Stock Exchange, Inc. (``BSE'' or
``Exchange'') 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.
The Exchange filed the proposed rule change as a ``non-controversial''
proposed rule change 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.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend the Rules of the Boston Options
Exchange (``BOX'') to permit the initial and continued listing and
trading on BOX of options on Index Multiple Exchange Traded Fund Shares
(``Index Multiple ETFs'') and Index Inverse Exchange Traded Fund Shares
(``Index Inverse ETFs''). The text of the proposed rule change is
available at the principal office of the Exchange, the Commission's
Public Reference Room, and https://www.bostonstock.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. BSE 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 purpose of the proposed rule change is to amend Sections 3 and
4 of Chapter IV of the BOX Rules to enable the listing and trading on
BOX of options on Index Multiple ETFs and Index Inverse ETFs. An Index
Multiple
[[Page 24619]]
ETF seeks to provide investment results, before fees and expenses, that
correspond to a specified multiple of the percentage performance on a
given day of a particular foreign or domestic stock index. An Index
Inverse ETF seeks to provide investment results, before fees and
expenses, that correspond to the inverse (opposite) of the percentage
performance on a given day of a particular foreign or domestic stock
index by a specified multiple. Index Multiple ETFs and Index Inverse
ETFs differ from traditional ETFs in that they do not merely correspond
to the performance of a given index, but rather attempt to match a
multiple or inverse of such underlying index performance. The ProShares
Ultra Funds, which currently trade on the American Stock Exchange
(``Amex''), are examples of Index Multiple ETFs. The ProShares Short
Funds and Ultra Short Funds, which are also currently listed for
trading on Amex, are examples of Index Inverse ETFs.\5\
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\5\ The Ultra Funds are expected to gain, on a percentage basis,
approximately twice (200%) as much as the underlying benchmark index
and should lose approximately twice (200%) as much as the underlying
benchmark index when such prices decline. The Short Funds are
expected to achieve investment results, before fees and expenses,
that correspond to the inverse or opposite (-100%) of the daily
performance of an underlying benchmark index. Lastly, the UltraShort
Funds are expected to achieve investment results, before fees and
expenses, that correspond to twice the inverse or opposite (-200%)
of the daily performance of the underlying benchmark index. See
Securities Exchange Act Release No. 52553 (October 3, 2005), 70 FR
59100 (October 11, 2005) (SR-Amex-2004-62). See also Securities
Exchange Act Release No. 54040 (June 23, 2006), 71 FR 37629 (June
30, 2006) (SR-Amex-2006-41).
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To achieve investment results that provide either a positive
multiple or inverse of the benchmark index, Index Multiple ETFs or
Index Inverse ETFs may hold a combination of financial instruments,
including, among other things: Stock index futures contracts; options
on futures; options on securities and indexes; equity caps, collars,
and floors; swap agreements; forward contracts; repurchase agreements;
and reverse repurchase agreements (collectively, ``Financial
Instruments''). The underlying portfolio of an Index Multiple ETF
generally will hold at least 85% of its assets in the component
securities of the underlying relevant benchmark index. The remainder is
devoted to Financial Instruments that are intended to create the
additional exposure to the underlying index necessary to pursue its
investment objective. Typically, 100% of the value of the portfolio
underlying the Index Inverse ETF will be devoted to Financial
Instruments and money market instruments, including U.S. government
securities and repurchase agreements (the ``Money Market
Instruments'').
Currently, Section 3(i) of Chapter IV of the BOX Rules provides
securities deemed appropriate for options trading shall include shares
or other securities (``Fund Shares'') \6\ that represent interests in
registered investment companies (or series thereof) organized as open-
end management investment companies, unit investment trusts or similar
entities. These are principally traded on a national securities
exchange or through the facilities of a national securities association
and are defined as an ``NMS stock'' under Rule 600 of Regulation NMS,
and that hold portfolios of securities comprising or otherwise based on
or representing investments in broad-based indexes or portfolios of
securities (or that hold securities in one or more other registered
investment companies that themselves hold such portfolios of
securities) (``Funds'').
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\6\ The Exchange also proposes to make technical conforming
changes to its current Sections 3, 4, and 6 of Chapter IV and
Section 3 of Chapter V of the BOX Rules to those of ISE and Amex. As
a result, and in the context of this filing, the Exchange refers to
Fund Shares as Exchange-Traded Fund Shares hereafter.
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The Exchange proposes to amend section 3 of Chapter IV of the BOX
Rules to expand the type of options that can be listed and traded to
include options based on Index Multiple ETFs and Index Inverse ETFs
that may hold or invest in any combination of securities, Financial
Instruments, and/or Money Market Instruments. Index Multiple ETFs and
Index Inverse ETFs on which Exchange-listed options are based must
continue to otherwise satisfy the listing standards of section 3(i) of
Chapter IV of the BOX Rules. The Exchange also proposes to make non-
substantive, clarifying changes to section 3(i) of Chapter IV of the
BOX Rules by conforming the construction of this rule to those of Amex
and the International Securities Exchange (``ISE''). The Exchange notes
that these changes are not significant, and do not substantively alter
the listing standards found in section 3 of Chapter IV of the BOX
Rules. Accordingly, in addition to certain repositioning of existing
rule text, the Exchange also proposes to remove the reference to a
``national securities association'' in section 3(i) of Chapter IV.
As set forth in proposed amended section 3(i) of Chapter IV of the
BOX Rules, an Index Multiple ETF or Index Inverse ETF on which an
Exchange-listed option is based must be traded on a national securities
exchange and must be an ``NMS stock'' as defined under Rule 600 of
Regulation NMS. In addition, such Index Multiple ETF and Index Inverse
ETF must meet either: (1) The criteria and guidelines set forth in
paragraphs (a) and (b) of section 3, Chapter IV of the BOX Rules; or
(2) be available for creation or redemption each business day from or
through the issuing trust, investment company, or other entity in cash
or in kind at a price related to net asset value. The investment
company shall provide that shares may be created even though some or
all of the securities and/or cash (in lieu of Financial Instruments)
needed to be deposited have not been received by the investment
company, provided that the person obligated to deposit the investment
assets has undertaken to deliver the shares and/or cash as soon as
possible and such undertaking has been secured by the delivery and
maintenance of collateral consisting of cash or cash equivalents
satisfactory to the issuer of the fund shares, all as described in the
fund shares' prospectus.
Additionally, the Fund Shares must also meet all of the following
conditions: (1) Any non-U.S. component securities of the index or
portfolio of securities on which the Fund Shares are based that are not
subject to comprehensive surveillance agreements do not in aggregate
represent more than 50% of the weight of the index or portfolio; (2)
component securities of an index or portfolio of securities on which
the Fund Shares are based for which the primary market is in any one
country that is not subject to a comprehensive surveillance agreement
do not represent 20% or more of the weight of the index; and (3)
component securities of an index or portfolio of securities on which
the Fund Shares are based for which the primary market is in any two
countries that are not subject to comprehensive surveillance agreements
do not represent 33% or more of the weight of the index.\7\
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\7\ See existing Section 3(i) of Chapter IV of the BOX Rules,
items (i) to (iii).
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The Exchange also proposes to amend section 4(h) of Chapter IV of
the BOX Rules to indicate that the index or portfolio may consist of,
among other things, securities, Financial Instruments and/or Money
Market Instruments. In proposing to make the Exchange's Rules conform
to those of the Amex and ISE, the Exchange also seeks to delete
reference to ``national securities association'' set forth in section
4(h) of Chapter IV of the BOX Rules.
Under the applicable continued listing criteria for section 4(h) of
[[Page 24620]]
Chapter IV of the BOX Rules, options on Fund Shares may be subject to
the suspension of opening transactions as follows:
Following the initial 12-month period beginning with the
commencement of trading of the Fund Shares, there are fewer than 50
record and/or beneficial holders of the Fund Shares for 30 or more
consecutive trading days;
The value of the index or portfolio of securities and/or
Financial Instruments and Money Market Instrument, on which the Fund
Shares are based is no longer calculated or available; or
Such other event occurs or condition exists that in the
opinion of the Exchange makes further dealing on the Exchange
inadvisable.
Additionally, an Index Multiple ETF or Index Inverse ETF shall not
be deemed to meet requirements for continued approval, and the Exchange
shall not open for trading any additional series of option contracts of
the class covering such ETF, if: (1) The underlying ETF is halted from
trading on its primary market; (2) the underlying ETF is delisted in
accordance with the terms of Section 4(h) of Chapter IV; or (3) the
value of the index or portfolio on which the underlying ETF is based is
no longer calculated or available.
The expansion of the types of investments that may be held by Index
Multiple ETFs or Index Inverse ETFs under Section 3(i) of Chapter IV of
the BOX Rules would not have any effect on the rules pertaining to
position and exercise limits \8\ or margin.\9\
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\8\ See Sections 7 and 9 of Chapter III of the BOX Rules.
\9\ See Section 3 of Chapter XIII of the BOX Rules.
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The Exchange believes that this proposal is necessary to enable the
Exchange to list and trade options on the shares of the Ultra Fund,
Short Fund, and UltraShort Fund of the ProShares Trust.\10\ The
Exchange believes the ability to trade options on Index Multiple ETFs
and Index Inverse ETFs will provide investors with greater risk
management tools.
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\10\ See supra note 5.
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The Exchange represents that its existing surveillance procedures
applicable to trading in options are adequate to properly monitor the
trading in Index Multiple ETF options and Index Inverse ETF options.
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 promote just and equitable principles of trade, to
prevent fraudulent and manipulative acts, and to remove impediments to
and perfect the mechanism of a free and open market and a national
market system, because the ability to trade options on Index Multiple
ETFs and Index Inverse ETFs will provide investors with greater risk
management tools and, in general, will allow for the protection of
investors and the public interest.
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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 would
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
Because the proposed rule change does not: (i) Significantly affect
the protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative for 30
days after the date of 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 subparagraph (f)(6)
of Rule 19b-4 thereunder.\14\
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\13\ 15 U.S.C. 78s(b)(3)(A).
\14\ 17 CFR 240.19b-4(f)(6). The Exchange has satisfied the
five-day pre-filing requirement of Rule 19b-4(f)(6)(iii).
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The Exchange has requested that the Commission waive the 30-day
operative delay and designate the proposed rule change as operative
upon filing. The Commission believes that waiving the 30-day operative
delay is consistent with the protection of investors and the public
interest. The proposed rule change is substantially similar to those of
other options exchanges that have been previously approved by the
Commission \15\ and does not appear to present any novel regulatory
issues. Therefore, the Commission designates the proposal operative
upon filing.\16\
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\15\ See Securities Exchange Act Release Nos. 56871 (November
30, 2007), 72 FR 68924 (December 6, 2007) (SR-ISE-2007-87); 56715
(Oct. 29, 2007), 72 FR 62287 (November 2, 2007) (SR-CBOE-2007-119);
and 56650 (October 12, 2007), 72 FR 59123 (October 18, 2007) (SR-
Amex-2007-35).
\16\ For purposes only of waiving the operative delay of this
proposal, the Commission has 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 the 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-BSE-2008-16 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-BSE-2008-16. 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
[[Page 24621]]
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-BSE-
2008-16 and should be submitted on or before May 27, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
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\17\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-9782 Filed 5-2-08; 8:45 am]
BILLING CODE 8010-01-P
