Self-Regulatory Organizations; NYSE Arca, Inc.; Order Granting Accelerated Approval of Proposed Rule Change Relating to the Listing and Trading of Shares of the NETS ISEQ 20 Index Fund (Ireland), 33136-33137 [E8-13040]

Download as PDF 33136 Federal Register / Vol. 73, No. 113 / Wednesday, June 11, 2008 / Notices 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, on official business days between the hours of 10 a.m. and 3 p.m. Copies of such filing also will be available for inspection and copying at the principal office of Nasdaq. 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– NASDAQ–2008–017 and should be submitted on or before July 2, 2008. V. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,15 that the proposed rule change (SR–NASDAQ– 2008–017), as modified by Amendment No. 1, be, and hereby is, approved on an accelerated basis. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.16 Florence E. Harmon, Acting Secretary. [FR Doc. E8–13067 Filed 6–10–08; 8:45 am] BILLING CODE 8010–01–P [Release No. 34–57921; File No. SR– NYSEArca-2008–46] Self-Regulatory Organizations; NYSE Arca, Inc.; Order Granting Accelerated Approval of Proposed Rule Change Relating to the Listing and Trading of Shares of the NETS ISEQ 20 Index Fund (Ireland) June 4, 2008. sroberts on PROD1PC70 with NOTICES I. Introduction On May 8, 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’’), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 16 17 U.S.C. 78s(b)(2). CFR 200.30–3(a)(12). VerDate Aug<31>2005 16:13 Jun 10, 2008 II. Description of the Proposal The Exchange proposes to list and trade the Shares pursuant to NYSE Arca Equities Rule 5.2(j)(3), the Exchange’s listing standards for Investment Company Units (‘‘ICUs’’).4 The Fund is an ‘‘index fund’’ that seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly-traded securities in the aggregate in the Irish market, as represented by the ISEQ 20 (‘‘Index’’). The primary market for securities in the Index is the Irish Stock Exchange. The Exchange represents that the Index for the Fund does not meet all of the ‘‘generic’’ listing requirements of Commentary .01(a)(B) to NYSE Arca Equities Rule 5.2(j)(3) applicable to the listing of ICUs based on international or global indexes.5 Specifically, the Index meets all such requirements except for those set forth in Commentary .01(a)(B)(3).6 The Exchange represents 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 See Securities Exchange Act Release No. 57805 (May 8, 2008), 73 FR 28178. 4 ICUs are securities that represent interests in a registered investment company that holds securities comprising, or otherwise based on or representing an interest in, an index or portfolio of securities (or holds securities in another registered investment company that holds securities comprising, or otherwise based on or representing an interest in, an index or portfolio of securities). See NYSE Arca Equities Rule 5.2(j)(3). 5 NYSE Arca Equities may approve a series of ICUs based on equity security components for listing and/or trading (including pursuant to unlisted trading privileges) pursuant to Rule 19b– 4(e) under the Act, if such series of ICUs satisfies the ‘‘generic’’ listing requirements that are set forth under Commentary .01 to NYSE Arca Equities Rule 5.2(j)(3) and have been approved by the Commission. See Commentary .01 to NYSE Arca Equities Rule 5.2(j)(3); 17 CFR 240.19b–4(e). 6 The Exchange states that the Index satisfies the first requirement under Commentary .01(a)(B)(3) to NYSE Arca Equities Rule 5.2(j)(3) that the most heavily weighted component stock shall not exceed 25% of the weight of the index or portfolio. However, the Index fails to meet the second requirement of Commentary .01(a)(B)(3) to NYSE Arca Equities Rule 5.2(j)(3) that the five most heavily weighted component stocks shall not exceed 60% of the weight of the Index. The Exchange states that, as of April 18, 2008, the five most heavily weighted component stocks represented 68.7% of the Index weight. 2 17 SECURITIES AND EXCHANGE COMMISSION 15 15 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a proposed rule change to list and trade the shares (‘‘Shares’’) of the NETS ISEQ 20 Index Fund (Ireland) (‘‘Fund’’) issued by the NETS Trust (‘‘Trust’’). The proposed rule change was published for comment in the Federal Register on May 15, 2008 for a 15-day comment period.3 The Commission received no comments on the proposal. This order approves the proposed rule change on an accelerated basis. Jkt 214001 PO 00000 Frm 00072 Fmt 4703 Sfmt 4703 that: (1) Except for the requirement under Commentary .01(a)(B)(3) to NYSE Arca Equities Rule 5.2(j)(3) relating to the five most heavily weighted component stocks, the Shares of the Fund currently satisfy all of the generic listing standards under NYSE Arca Equities Rule 5.2(j)(3); (2) the continued listing standards under NYSE Arca Equities Rules 5.2(j)(3) and 5.5(g)(2) applicable to ICUs will apply to the Shares; and (3) the Trust is required to comply with Rule 10A–3 under the Act 7 for the initial and continued listing of the Shares. In addition, the Exchange represents that the Shares will comply with all other requirements applicable to ICUs including, but not limited to, requirements relating to the dissemination of key information such as the Index value and Intraday Indicative Value, 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 applicable to the listing and trading of ICUs.8 III. Discussion and Commission’s Findings The Commission has carefully reviewed the proposed rule change and finds that it is consistent with the requirements of Section 6 of the Act 9 and the rules and regulations thereunder applicable to a national securities exchange.10 In particular, the Commission finds that the proposal is consistent with Section 6(b)(5) of the Act,11 which requires, among other things, that the Exchange’s rules be designed to promote just and equitable principles of trade, 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 Commission believes that the proposed rule change should not significantly affect the protection of investors or the public interest or 7 See 17 CFR 240.10A–3. e.g., Securities Exchange Act Release Nos. 55621 (April 12, 2007), 72 FR 19571 (April 18, 2007) (SR–NYSEArca–2006–86) (approving generic listing standards for ICUs based on international or global indexes); 44551 (July 12, 2001), 66 FR 37716 (July 19, 2001) (SR–PCX–2001–14) (approving generic listing standards for ICUs and Portfolio Depositary Receipts); and 41983 (October 6, 1999), 64 FR 56008 (October 15, 1999) (SR–PCX–98–29) (approving rules for the listing and trading of ICUs). 9 15 U.S.C. 78f. 10 In approving this proposed rule change the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 11 15 U.S.C. 78f(b)(5). 8 See, E:\FR\FM\11JNN1.SGM 11JNN1 Federal Register / Vol. 73, No. 113 / Wednesday, June 11, 2008 / Notices impose any significant burden on competition. The Commission notes the Exchange’s representations that, although the Index fails to meet the requirement relating to the five most heavily weighted component stocks set forth in Commentary .01(a)(B)(3) to NYSE Arca Equities Rule 5.2(j)(3) by 8.7%,12 the Shares currently satisfy all of the other applicable generic listing standards under NYSE Arca Equities Rule 5.2(j)(3), and will be subject to all of the continued listing standards under NYSE Arca Equities Rules 5.2(j)(3) and 5.5(g)(2) applicable to ICUs. Additionally, the Exchange represents that the Shares will comply with all other requirements applicable to ICUs 13 and that the Trust is required to comply with Rule 10A–3 under the Act.14 The Commission finds good cause for approving the proposed rule change before the 30th day after the date of publication of notice of filing thereof in the Federal Register. The Commission notes that, because the Shares comply with all of the NYSE Arca Equities generic listing standards for ICUs (except for missing the requirement relating to the five highest weighted components of the Index), the listing and trading of the Shares 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 believes that accelerated approval of the proposed rule change should provide additional choices for investors in, and promote additional competition in the market for, ICUs. Therefore, the Commission finds good cause, consistent with Section 19(b)(2) of the Act, to approve the proposed rule change on an accelerated basis. IV. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,15 that the proposed rule change (SR–NYSEArca– 2008–46) be, and it hereby is, approved on an accelerated basis. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.16 Florence E. Harmon, Acting Secretary. [FR Doc. E8–13040 Filed 6–10–08; 8:45 am] sroberts on PROD1PC70 with NOTICES BILLING CODE 8010–01–P supra note 6. supra note 8 and accompanying text. 14 See 17 CFR 240.10A–3. 15 15 U.S.C. 78s(b)(2). 16 17 CFR 200.30–3(a)(12). [Release No. 34–57922; File No. SR– NYSEArca-2008–55] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Extension of the Pilot Program for Initial and Continued Financial Listing Standards for Common Stock of Operating Companies Until November 30, 2008 The text of these statements may be examined at the places specified in Item IV below. The self-regulatory organization 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 SECURITIES AND EXCHANGE COMMISSION June 4, 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 May 28, 2008, NYSE Arca, Inc. (‘‘NYSE Arca’’ 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 selfregulatory organization. The Exchange filed the 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 proposed rule change 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, through its whollyowned subsidiary NYSE Arca Equities, Inc. (‘‘NYSE Arca Equities’’), has amended the rules governing NYSE Arca, LLC (also referred to as the ‘‘NYSE Arca Marketplace’’), which is the equities trading facility of NYSE Arca Equities, on a pilot program basis (the ‘‘Pilot Program’’) to amend the initial and continued financial listing standards for common stock of operating companies. The Pilot Program expires on May 31, 2008. The Exchange proposes to extend the Pilot Program until November 30, 2008. 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 self-regulatory organization included statements concerning the purpose of and basis for the proposed rule change. 12 See 13 See VerDate Aug<31>2005 16:13 Jun 10, 2008 Jkt 214001 33137 1 15 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 PO 00000 Frm 00073 Fmt 4703 Sfmt 4703 1. Purpose NYSE Arca has amended on a pilot program basis the rules governing the NYSE Arca Marketplace to amend the financial listing standards for common stock of operating companies.5 On October 3, 2007, the Commission approved the Exchange’s request to amend the Pilot Program to, among other things, make the initial listing standards more restrictive and exclude from qualification some companies that currently qualify to list but whose size or financial performance is not consistent with that kind of issuer NYSE Arca intends to list on the NYSE Arca Marketplace.6 The Pilot Program expires on May 31, 2008. The Exchange proposes to extend the Pilot Program until November 30, 2008. Based on the results of the Pilot Program, the Exchange has determined that the Pilot Program has met its expectations. As a result, the Exchange intends to file a proposal to permanently adopt the Pilot Program. 2. Statutory Basis The proposed rule change is consistent with Section 6(b) of the Act,7 in general, and furthers the objectives of Section 6(b)(5) of the Act,8 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 mechanisms of a free and 5 The Commission initially approved the Pilot Program for six months, until May 29, 2007. See Securities Exchange Act Release No. 54796 (November 20, 2006), 71 FR 69166 (November 29, 2006) (SR–NYSEArca–2006–85). The Pilot Program was subsequently extended for an additional six months, until November 30, 2007. See Securities Exchange Act Release No. 55838 (May 31, 2007), 72 FR 31642 (June 7, 2007) (SR–NYSEArca–2007–51). The Pilot Program was extended for an additional six months, until May 31, 2008. See Securities Exchange Act Release No. 56885 (December 3, 2007), 72 FR 69272 (December 7, 2007) (SR– NYSEArca–2007–123). 6 See Securities Exchange Act Release No. 56606 (October 3, 2007), 72 FR 57982 (October 11, 2007) (SR–NYSEArca–2007–69). 7 15 U.S.C. 78f(b). 8 15 U.S.C. 78f(b)(5). E:\FR\FM\11JNN1.SGM 11JNN1

Agencies

[Federal Register Volume 73, Number 113 (Wednesday, June 11, 2008)]
[Notices]
[Pages 33136-33137]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-13040]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57921; File No. SR-NYSEArca-2008-46]


Self-Regulatory Organizations; NYSE Arca, Inc.; Order Granting 
Accelerated Approval of Proposed Rule Change Relating to the Listing 
and Trading of Shares of the NETS ISEQ 20 Index Fund (Ireland)

June 4, 2008.

I. Introduction

    On May 8, 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''), pursuant to Section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a 
proposed rule change to list and trade the shares (``Shares'') of the 
NETS ISEQ 20 Index Fund (Ireland) (``Fund'') issued by the NETS Trust 
(``Trust''). The proposed rule change was published for comment in the 
Federal Register on May 15, 2008 for a 15-day comment period.\3\ The 
Commission received no comments on the proposal. This order approves 
the proposed rule change on an accelerated basis.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 57805 (May 8, 2008), 
73 FR 28178.
---------------------------------------------------------------------------

II. Description of the Proposal

    The Exchange proposes to list and trade the Shares pursuant to NYSE 
Arca Equities Rule 5.2(j)(3), the Exchange's listing standards for 
Investment Company Units (``ICUs'').\4\ The Fund is an ``index fund'' 
that seeks to provide investment results that correspond generally to 
the price and yield performance, before fees and expenses, of publicly-
traded securities in the aggregate in the Irish market, as represented 
by the ISEQ 20[supreg] (``Index''). The primary market for securities 
in the Index is the Irish Stock Exchange.
---------------------------------------------------------------------------

    \4\ ICUs are securities that represent interests in a registered 
investment company that holds securities comprising, or otherwise 
based on or representing an interest in, an index or portfolio of 
securities (or holds securities in another registered investment 
company that holds securities comprising, or otherwise based on or 
representing an interest in, an index or portfolio of securities). 
See NYSE Arca Equities Rule 5.2(j)(3).
---------------------------------------------------------------------------

    The Exchange represents that the Index for the Fund does not meet 
all of the ``generic'' listing requirements of Commentary .01(a)(B) to 
NYSE Arca Equities Rule 5.2(j)(3) applicable to the listing of ICUs 
based on international or global indexes.\5\ Specifically, the Index 
meets all such requirements except for those set forth in Commentary 
.01(a)(B)(3).\6\ The Exchange represents that: (1) Except for the 
requirement under Commentary .01(a)(B)(3) to NYSE Arca Equities Rule 
5.2(j)(3) relating to the five most heavily weighted component stocks, 
the Shares of the Fund currently satisfy all of the generic listing 
standards under NYSE Arca Equities Rule 5.2(j)(3); (2) the continued 
listing standards under NYSE Arca Equities Rules 5.2(j)(3) and 
5.5(g)(2) applicable to ICUs will apply to the Shares; and (3) the 
Trust is required to comply with Rule 10A-3 under the Act \7\ for the 
initial and continued listing of the Shares. In addition, the Exchange 
represents that the Shares will comply with all other requirements 
applicable to ICUs including, but not limited to, requirements relating 
to the dissemination of key information such as the Index value and 
Intraday Indicative Value, 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 applicable to the listing and 
trading of ICUs.\8\
---------------------------------------------------------------------------

    \5\ NYSE Arca Equities may approve a series of ICUs based on 
equity security components for listing and/or trading (including 
pursuant to unlisted trading privileges) pursuant to Rule 19b-4(e) 
under the Act, if such series of ICUs satisfies the ``generic'' 
listing requirements that are set forth under Commentary .01 to NYSE 
Arca Equities Rule 5.2(j)(3) and have been approved by the 
Commission. See Commentary .01 to NYSE Arca Equities Rule 5.2(j)(3); 
17 CFR 240.19b-4(e).
    \6\ The Exchange states that the Index satisfies the first 
requirement under Commentary .01(a)(B)(3) to NYSE Arca Equities Rule 
5.2(j)(3) that the most heavily weighted component stock shall not 
exceed 25% of the weight of the index or portfolio. However, the 
Index fails to meet the second requirement of Commentary 
.01(a)(B)(3) to NYSE Arca Equities Rule 5.2(j)(3) that the five most 
heavily weighted component stocks shall not exceed 60% of the weight 
of the Index. The Exchange states that, as of April 18, 2008, the 
five most heavily weighted component stocks represented 68.7% of the 
Index weight.
    \7\ See 17 CFR 240.10A-3.
    \8\ See, e.g., Securities Exchange Act Release Nos. 55621 (April 
12, 2007), 72 FR 19571 (April 18, 2007) (SR-NYSEArca-2006-86) 
(approving generic listing standards for ICUs based on international 
or global indexes); 44551 (July 12, 2001), 66 FR 37716 (July 19, 
2001) (SR-PCX-2001-14) (approving generic listing standards for ICUs 
and Portfolio Depositary Receipts); and 41983 (October 6, 1999), 64 
FR 56008 (October 15, 1999) (SR-PCX-98-29) (approving rules for the 
listing and trading of ICUs).
---------------------------------------------------------------------------

III. Discussion and Commission's Findings

    The Commission has carefully reviewed the proposed rule change and 
finds that it is consistent with the requirements of Section 6 of the 
Act \9\ and the rules and regulations thereunder applicable to a 
national securities exchange.\10\ In particular, the Commission finds 
that the proposal is consistent with Section 6(b)(5) of the Act,\11\ 
which requires, among other things, that the Exchange's rules be 
designed to promote just and equitable principles of trade, 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.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78f.
    \10\ In approving this proposed rule change the Commission has 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. See 15 U.S.C. 78c(f).
    \11\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Commission believes that the proposed rule change should not 
significantly affect the protection of investors or the public interest 
or

[[Page 33137]]

impose any significant burden on competition. The Commission notes the 
Exchange's representations that, although the Index fails to meet the 
requirement relating to the five most heavily weighted component stocks 
set forth in Commentary .01(a)(B)(3) to NYSE Arca Equities Rule 
5.2(j)(3) by 8.7%,\12\ the Shares currently satisfy all of the other 
applicable generic listing standards under NYSE Arca Equities Rule 
5.2(j)(3), and will be subject to all of the continued listing 
standards under NYSE Arca Equities Rules 5.2(j)(3) and 5.5(g)(2) 
applicable to ICUs. Additionally, the Exchange represents that the 
Shares will comply with all other requirements applicable to ICUs \13\ 
and that the Trust is required to comply with Rule 10A-3 under the 
Act.\14\
---------------------------------------------------------------------------

    \12\ See supra note 6.
    \13\ See supra note 8 and accompanying text.
    \14\ See 17 CFR 240.10A-3.
---------------------------------------------------------------------------

    The Commission finds good cause for approving the proposed rule 
change before the 30th day after the date of publication of notice of 
filing thereof in the Federal Register. The Commission notes that, 
because the Shares comply with all of the NYSE Arca Equities generic 
listing standards for ICUs (except for missing the requirement relating 
to the five highest weighted components of the Index), the listing and 
trading of the Shares 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 believes that 
accelerated approval of the proposed rule change should provide 
additional choices for investors in, and promote additional competition 
in the market for, ICUs. Therefore, the Commission finds good cause, 
consistent with Section 19(b)(2) of the Act, to approve the proposed 
rule change on an accelerated basis.

IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\15\ that the proposed rule change (SR-NYSEArca-2008-46) be, and it 
hereby is, approved on an accelerated basis.
---------------------------------------------------------------------------

    \15\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\16\
---------------------------------------------------------------------------

    \16\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Acting Secretary.
 [FR Doc. E8-13040 Filed 6-10-08; 8:45 am]
BILLING CODE 8010-01-P
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