Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing of Proposed Rule Change Relating to Listing Certain Derivative Products Pursuant to Continued Listing Criteria, 60388-60390 [E8-24180]
Download as PDF
<![CDATA[
60388
Federal Register / Vol. 73, No. 198 / Friday, October 10, 2008 / Notices
designates the proposal operative upon
filing.
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:
mstockstill on PROD1PC66 with NOTICES
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–2008–106 on
the subject line.
you wish to make available publicly. All
submissions should refer to File
Number SR–NYSEArca–2008–106 and
should be submitted on or before
October 31, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–24179 Filed 10–9–08; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58734; File No. SR–
NYSEArca–2008–105]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing of Proposed
Rule Change Relating to Listing
Certain Derivative Products Pursuant
to Continued Listing Criteria
October 6, 2008.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (‘‘Act’’
or ‘‘Exchange Act’’) 1 and Rule 19b–4
Paper Comments
thereunder,2 notice is hereby given that
on October 1, 2008, NYSE Arca, Inc.
• Send paper comments in triplicate
(‘‘NYSE Arca’’ or ‘‘Exchange’’) filed
to Secretary, Securities and Exchange
with the Securities and Exchange
Commission, 100 F Street, NE.,
Commission (‘‘Commission’’) the
Washington, DC 20549–1090.
proposed rule change as described in
All submissions should refer to File
Items I, II, and III below, which Items
Number SR–NYSEArca–2008–106. This
have been prepared by NYSE Arca. The
file number should be included on the
Commission is publishing this notice to
subject line if e-mail is used. To help the
solicit comments on the proposed rule
Commission process and review your
change from interested persons.
comments more efficiently, please use
only one method. The Commission will I. Self-Regulatory Organization’s
post all comments on the Commission’s Statement of the Terms of Substance of
the Proposed Rule Change
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
NYSE Arca, through its wholly owned
submission, all subsequent
subsidiary NYSE Arca Equities, Inc.
amendments, all written statements
(‘‘NYSE Arca Equities’’), proposes to
with respect to the proposed rule
adopt Commentary .01 to Rule 5.2(b) to
change that are filed with the
allow NYSE Arca to list Derivative
Commission, and all written
Products (as defined in the proposed
communications relating to the
Commentary .01 to Rule 5.2(b)) that (1)
proposed rule change between the
were originally listed on another
Commission and any person, other than registered national securities exchange
those that may be withheld from the
on an initial listing basis and continue
public in accordance with the
to be listed on such other registered
provisions of 5 U.S.C. 552, will be
national securities exchange, and (2)
available for inspection and copying in
satisfy the Exchange’s continued listing
the Commission’s Public Reference
criteria. The text of the proposed rule
Room, 100 F Street, NE., Washington,
change is set forth below (new language
DC 20549, on official business days
is in italics):
between the hours of 10 a.m. and 3 p.m.
Rule 5.2(b)
Copies of the filing also will be available *
*
*
*
*
for inspection and copying at the
Commentary:
principal office of the Exchange. All
.01 The Exchange is permitted to list
comments received will be posted
any Derivative Product, as described
without change; the Commission does
not edit personal identifying
15 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
information from submissions. You
2 17 CFR 240.19b–4.
should submit only information that
VerDate Aug<31>2005
20:11 Oct 09, 2008
Jkt 217001
PO 00000
Frm 00161
Fmt 4703
Sfmt 4703
below, that (1) was originally listed on
another registered national securities
exchange (‘‘Other SRO’’) and continues
to be listed on such Other SRO; and (2)
satisfies the Exchange’s continued
listing criteria that are applicable to the
product class that would include such
Derivative Product. For the purposes of
this rule, the term ‘‘Derivative Product’’
shall include securities described in
NYSE Arca Equities Rules 5.2(j)(2)
(Equity Linked Notes); 5.2(j)(3)
(Investment Company Units); 5.2(j)(4)
(Index-Linked Exchangeable Notes);
5.2(j)(6) (Equity Index-Linked Securities,
Commodity-Linked Securities,
Currency-Linked Securities, Fixed
Income Index-Linked Securities,
Futures-Linked Securities and
Multifactor Index-Linked Securities);
8.100 (Portfolio Depositary Receipts);
and Commentary .01 to Rule 8.200
(Trust Issued Receipts).
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
and discussed any comments it received
on the proposed rule change. The text
of those 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 parts 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 is proposing to adopt
Commentary .01 to NYSE Arca Equities
Rule 5.2(b) to allow NYSE Arca to list
Derivative Products (as defined in the
proposed Commentary .01 to Rule
5.2(b)) 3 that (1) were originally listed on
3 For purposes of proposed Rule 5.2(b),
Commentary .01, the term ‘‘Derivative Products’’
includes securities described in Rule 5.2(j)(2)
(Equity-Linked Notes); Rule 5.2(j)(3) (Investment
Company Units); Rule 5.2(j)(4) (Index-Linked
Exchangeable Notes); and Rule 5.2(j)(6) (IndexLinked Securities); and the following securities
enumerated in provisions of section 2 to Rule 8:
Portfolio Depositary Receipts; and Trust Issued
Receipts to be listed pursuant to Rule 8.200,
Commentary .01. Exchange rules relating to listing
and trading, including trading pursuant to unlisted
trading privileges, of ‘‘Derivative Products’’ as
described above permit listing and trading pursuant
to Rule 19b–4(e) under the Exchange Act. Rule 19b–
4(e) under the Exchange Act 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,
E:\FR\FM\10OCN1.SGM
10OCN1
Federal Register / Vol. 73, No. 198 / Friday, October 10, 2008 / Notices
mstockstill on PROD1PC66 with NOTICES
another registered national securities
exchange (‘‘Other SRO’’) on an initial
listing basis and continue to be listed on
such Other SRO and (2) satisfy the
Exchange’s continued listing criteria
applicable to the relevant product class.
Such Derivative Products would be
listed pursuant to NYSE Arca Equities
continued listing criteria.
For example, in the case of an IndexLinked Security that is listed on an
Other SRO, the staff of the Exchange
would determine whether the IndexLinked Security met the continued
listing criteria. If the Index-Linked
Security met the continued listing
criteria, then the Exchange would
proceed to list such security on the
Exchange. If the Index-Linked Security
did not meet the continued listing
criteria, the staff of the Exchange would
then, in its sole discretion, either file a
separate rule filing under Rule 19b–4 of
the Exchange Act proposing that the
Index-Linked Security be listed on the
Exchange pursuant to the criteria set
forth in the rule filing, or decline to list
the Index-Linked Security on the
Exchange.
The Exchange believes that
application of continued listing criteria
is appropriate to facilitate the listing of
Derivative Products from Other SROs to
the Exchange. Because the Exchange’s
continued listing criteria are similar or
identical to those of certain Other SROs,
the Exchange believes there would be
no significant regulatory concerns with
facilitating the efficient and timely
listing of Other SRO-listed Derivative
Products by allowing such products to
satisfy continued listing criteria.4 Also,
in light of the similar nature of the
continued listing criteria of the
Exchange and Other SROs, such as the
Amex, the Exchange believes that
having the ability to apply continued
listing criteria in verifying that the
pursuant to section (c)(1) of Rule 19b–4, if the
Commission has approved, pursuant to Section
19(b) of the Exchange 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. See Securities
Exchange Act Release No. 40761 (December 8,
1998), 63 FR 70952 (December 22, 1998) (File No.
S7–13–98).
4 For example, the following are American Stock
Exchange LLC (‘‘Amex’’) listing standards for
Derivative Products having similar or identical
continued listing standards to those of the
Exchange: Index Fund Shares (Amex Rule 1000A et
seq.); Portfolio Depositary Receipts (Rules 1000 et
seq.); Trust Issued Receipts (Rules 1200 et seq.); and
securities listed under Section 107 of the Amex
Company Guide, including Equity-Linked Term
Notes; Index-Linked Exchangeable Notes; IndexLinked Securities; Commodity-Linked Securities;
Currency-Linked Securities; Fixed Income-Linked
Securities; Futures-Linked Securities; and
Combination-Linked Securities.
VerDate Aug<31>2005
20:11 Oct 09, 2008
Jkt 217001
Derivatives Products are qualified to be
listed on the Exchange will not harm
investors. In addition, such flexibility
will assist certain issuers of Derivative
Products in remaining listed and traded
on a national securities exchange,
without risking possible delisting based
on a failure to meet the applicable
Exchange initial listing criteria.
Prior to listing on the Exchange, the
issuer of a Derivative Product would be
required to properly delist from the
Other SRO and satisfy the applicable
listing procedures of the Exchange and
applicable statutory and regulatory
requirements, including, without
limitation, Section 12 of the Act,5
relating to listing such Derivative
Product on the Exchange.
The Exchange represents that, for any
Derivative Product listed pursuant to
proposed Commentary .01 to Rule
5.2(b), other than the initial listing
standards, the shares of such Derivative
Product will comply with all other
pertinent requirements applicable to the
product class that would include such
Derivative Product, including, but not
limited to, requirements relating to the
dissemination of key information, such
as an index value, reference asset value,
and intraday indicative value, rules
governing the trading of equity
securities, trading hours, trading halts,
surveillance, firewalls, and Information
Bulletins to ETP Holders, as set forth in
Exchange rules applicable to such
Derivative Product and prior
Commission orders approving the
generic listing rules applicable to the
listing and trading of such Derivative
Product.6
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) 7 of the Act
in general and furthers the objectives of
Section 6(b)(5) 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
regulating, clearing, settling, processing
information with respect to, and
facilitating transaction in securities,
and, in general to protect investors and
the public interest. The proposed rule
change would assist Other-SRO
Derivative Product issuers to list on the
Exchange, thus removing a potential
impediment to the mechanism of a free
5 15
U.S.C. 78(l).
email from Michael Cavalier, Chief Counsel,
NYSE Euronext, to Christopher Chow, Special
Counsel, Commission, dated October 2, 2008.
7 15 U.S.C. 78f(b).
8 15 U.S.C. 78f(b)(5).
6 See
PO 00000
Frm 00162
Fmt 4703
Sfmt 4703
60389
and open market and protecting the
public interest.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received from
Members, Participants or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 35 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the self-regulatory
organization consents, the Commission
will:
A. By order approve the proposed rule
change; or
B. Institute proceedings to determine
whether the proposed rule change
should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–NYSEArca–2008–105 on
the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street, NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–NYSEArca–2008–105. 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
E:\FR\FM\10OCN1.SGM
10OCN1
60390
Federal Register / Vol. 73, No. 198 / Friday, October 10, 2008 / Notices
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–2008–105 and
should be submitted on or before
October 31, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–24180 Filed 10–9–08; 8:45 am]
BILLING CODE 8011–01–P
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
President’s major disaster declaration on
09/26/2008, Private Non-Profit
organizations that provide essential
services of governmental nature may file
disaster loan applications 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:Baldwin, Mobile.
The Interest Rates are:
Percent
Other (Including Non-Profit Organizations) With Credit Available
Elsewhere .................................
Businesses and Non-Profit Organizations Without Credit Available Elsewhere .........................
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
President’s major disaster declaration on
09/26/2008, Private Non-Profit
organizations that provide essential
services of governmental nature may file
disaster loan applications 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: Denali Borough,
Fairbanks North Star Borough,
North Slope Borough, YukonKoyukuk REAA.
The Interest Rates are:
5.250
4.000
The number assigned to this disaster
for physical damage and for economic
injury is 11467.
(Catalog of Federal Domestic Assistance
Numbers 59002 and 59008)
Herbert L. Mitchell,
Associate Administrator for Disaster
Assistance.
[FR Doc. E8–24080 Filed 10–9–08; 8:45 am]
Percent
Other (Including Non-Profit Organizations) With Credit Available
Elsewhere .................................
Businesses and Non-Profit Organizations Without Credit Available Elsewhere .........................
5.250
4.000
The number assigned to this disaster
for physical damage and economic
injury is 11466.
(Catalog of Federal Domestic Assistance
Numbers 59002 and 59008)
Alabama Disaster #AL–00016
SMALL BUSINESS ADMINISTRATION
Herbert L. Mitchell,
Associate Administrator for Disaster
Assistance.
[FR Doc. E8–24083 Filed 10–9–08; 8:45 am]
U.S. Small Business
Administration.
ACTION: Notice.
[Disaster Declaration #11466]
BILLING CODE 8025–01–P
SMALL BUSINESS ADMINISTRATION
BILLING CODE 8025–01–P
[Disaster Declaration #11467]
mstockstill on PROD1PC66 with NOTICES
AGENCY:
Alaska Disaster #AK–00014
SUMMARY: This is a Notice of the
Presidential declaration of a major
disaster for Public Assistance Only for
the State ofAlabama (FEMA–1797–DR),
dated 09/26/2008.
Incident: Severe Storms and Flooding
associated with Hurricane Ike.
Incident Period: 09/12/2008 through
09/14/2008.
Effective Date: 09/26/2008.
Physical Loan Application Deadline
Date: 11/25/2008.
Economic Injury (EIDL) Loan
Application Deadline Date: 06/26/2009.
ADDRESSES: Submit completed loan
applications to:U.S. Small Business
Administration, Processing and
9 17
CFR 200.30–3(a)(12).
VerDate Aug<31>2005
20:11 Oct 09, 2008
Jkt 217001
SMALL BUSINESS ADMINISTRATION
U.S. Small Business
Administration.
ACTION: Notice.
AGENCY:
[Disaster Declaration #11469 and #11470]
Illinois Disaster #IL–00019
SUMMARY: This is a Notice of the
Presidential declaration of a major
disaster for Public Assistance Only for
the State of Alaska (FEMA–1796–DR),
dated 09/26/2008.
Incident: Severe Storms, Flooding,
Landslides, and Mudslides.
Incident Period: 07/27/2008 through
08/06/2008.
Effective Date: 09/26/2008.
Physical Loan Application Deadline
Date: 11/25/2008.
Economic Injury (EIDL) Loan
Application Deadline Date: 06/26/2009.
ADDRESSES: Submit completed loan
applications to: U.S. Small Business
PO 00000
Frm 00163
Fmt 4703
Sfmt 4703
U.S. Small Business
Administration.
ACTION: Notice.
AGENCY:
SUMMARY: This is a Notice of the
Presidential declaration of a major
disaster for the State of Illinois (FEMA—
1800—DR), dated 10/03/2008.
Incident: Severe Storms and Flooding.
Incident Period: 09/13/2008 and
continuing.
Effective Date: 10/03/2008.
Physical Loan Application Deadline
Date: 12/02/2008.
Economic Injury (EIDL) Loan
Application Deadline Date: 07/03/2009.
E:\FR\FM\10OCN1.SGM
10OCN1
]]>Agencies
[Federal Register Volume 73, Number 198 (Friday, October 10, 2008)]
[Notices]
[Pages 60388-60390]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-24180]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-58734; File No. SR-NYSEArca-2008-105]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
of Proposed Rule Change Relating to Listing Certain Derivative Products
Pursuant to Continued Listing Criteria
October 6, 2008.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'' or ``Exchange Act'') \1\ and Rule 19b-4 thereunder,\2\ notice
is hereby given that on October 1, 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, II,
and III below, which Items have been prepared by NYSE Arca. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
NYSE Arca, through its wholly owned subsidiary NYSE Arca Equities,
Inc. (``NYSE Arca Equities''), proposes to adopt Commentary .01 to Rule
5.2(b) to allow NYSE Arca to list Derivative Products (as defined in
the proposed Commentary .01 to Rule 5.2(b)) that (1) were originally
listed on another registered national securities exchange on an initial
listing basis and continue to be listed on such other registered
national securities exchange, and (2) satisfy the Exchange's continued
listing criteria. The text of the proposed rule change is set forth
below (new language is in italics):
Rule 5.2(b)
* * * * *
Commentary:
.01 The Exchange is permitted to list any Derivative Product, as
described below, that (1) was originally listed on another registered
national securities exchange (``Other SRO'') and continues to be listed
on such Other SRO; and (2) satisfies the Exchange's continued listing
criteria that are applicable to the product class that would include
such Derivative Product. For the purposes of this rule, the term
``Derivative Product'' shall include securities described in NYSE Arca
Equities Rules 5.2(j)(2) (Equity Linked Notes); 5.2(j)(3) (Investment
Company Units); 5.2(j)(4) (Index-Linked Exchangeable Notes); 5.2(j)(6)
(Equity Index-Linked Securities, Commodity-Linked Securities, Currency-
Linked Securities, Fixed Income Index-Linked Securities, Futures-Linked
Securities and Multifactor Index-Linked Securities); 8.100 (Portfolio
Depositary Receipts); and Commentary .01 to Rule 8.200 (Trust Issued
Receipts).
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 and discussed any comments it received on the
proposed rule change. The text of those 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 parts 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 is proposing to adopt Commentary .01 to NYSE Arca
Equities Rule 5.2(b) to allow NYSE Arca to list Derivative Products (as
defined in the proposed Commentary .01 to Rule 5.2(b)) \3\ that (1)
were originally listed on
[[Page 60389]]
another registered national securities exchange (``Other SRO'') on an
initial listing basis and continue to be listed on such Other SRO and
(2) satisfy the Exchange's continued listing criteria applicable to the
relevant product class. Such Derivative Products would be listed
pursuant to NYSE Arca Equities continued listing criteria.
---------------------------------------------------------------------------
\3\ For purposes of proposed Rule 5.2(b), Commentary .01, the
term ``Derivative Products'' includes securities described in Rule
5.2(j)(2) (Equity-Linked Notes); Rule 5.2(j)(3) (Investment Company
Units); Rule 5.2(j)(4) (Index-Linked Exchangeable Notes); and Rule
5.2(j)(6) (Index-Linked Securities); and the following securities
enumerated in provisions of section 2 to Rule 8: Portfolio
Depositary Receipts; and Trust Issued Receipts to be listed pursuant
to Rule 8.200, Commentary .01. Exchange rules relating to listing
and trading, including trading pursuant to unlisted trading
privileges, of ``Derivative Products'' as described above permit
listing and trading pursuant to Rule 19b-4(e) under the Exchange
Act. Rule 19b-4(e) under the Exchange Act 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 section (c)(1) of Rule 19b-4, if the
Commission has approved, pursuant to Section 19(b) of the Exchange
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. See Securities Exchange Act Release No. 40761 (December 8,
1998), 63 FR 70952 (December 22, 1998) (File No. S7-13-98).
---------------------------------------------------------------------------
For example, in the case of an Index-Linked Security that is listed
on an Other SRO, the staff of the Exchange would determine whether the
Index-Linked Security met the continued listing criteria. If the Index-
Linked Security met the continued listing criteria, then the Exchange
would proceed to list such security on the Exchange. If the Index-
Linked Security did not meet the continued listing criteria, the staff
of the Exchange would then, in its sole discretion, either file a
separate rule filing under Rule 19b-4 of the Exchange Act proposing
that the Index-Linked Security be listed on the Exchange pursuant to
the criteria set forth in the rule filing, or decline to list the
Index-Linked Security on the Exchange.
The Exchange believes that application of continued listing
criteria is appropriate to facilitate the listing of Derivative
Products from Other SROs to the Exchange. Because the Exchange's
continued listing criteria are similar or identical to those of certain
Other SROs, the Exchange believes there would be no significant
regulatory concerns with facilitating the efficient and timely listing
of Other SRO-listed Derivative Products by allowing such products to
satisfy continued listing criteria.\4\ Also, in light of the similar
nature of the continued listing criteria of the Exchange and Other
SROs, such as the Amex, the Exchange believes that having the ability
to apply continued listing criteria in verifying that the Derivatives
Products are qualified to be listed on the Exchange will not harm
investors. In addition, such flexibility will assist certain issuers of
Derivative Products in remaining listed and traded on a national
securities exchange, without risking possible delisting based on a
failure to meet the applicable Exchange initial listing criteria.
---------------------------------------------------------------------------
\4\ For example, the following are American Stock Exchange LLC
(``Amex'') listing standards for Derivative Products having similar
or identical continued listing standards to those of the Exchange:
Index Fund Shares (Amex Rule 1000A et seq.); Portfolio Depositary
Receipts (Rules 1000 et seq.); Trust Issued Receipts (Rules 1200 et
seq.); and securities listed under Section 107 of the Amex Company
Guide, including Equity-Linked Term Notes; Index-Linked Exchangeable
Notes; Index-Linked Securities; Commodity-Linked Securities;
Currency-Linked Securities; Fixed Income-Linked Securities; Futures-
Linked Securities; and Combination-Linked Securities.
---------------------------------------------------------------------------
Prior to listing on the Exchange, the issuer of a Derivative
Product would be required to properly delist from the Other SRO and
satisfy the applicable listing procedures of the Exchange and
applicable statutory and regulatory requirements, including, without
limitation, Section 12 of the Act,\5\ relating to listing such
Derivative Product on the Exchange.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78(l).
---------------------------------------------------------------------------
The Exchange represents that, for any Derivative Product listed
pursuant to proposed Commentary .01 to Rule 5.2(b), other than the
initial listing standards, the shares of such Derivative Product will
comply with all other pertinent requirements applicable to the product
class that would include such Derivative Product, including, but not
limited to, requirements relating to the dissemination of key
information, such as an index value, reference asset value, and
intraday indicative value, rules governing the trading of equity
securities, trading hours, trading halts, surveillance, firewalls, and
Information Bulletins to ETP Holders, as set forth in Exchange rules
applicable to such Derivative Product and prior Commission orders
approving the generic listing rules applicable to the listing and
trading of such Derivative Product.\6\
---------------------------------------------------------------------------
\6\ See email from Michael Cavalier, Chief Counsel, NYSE
Euronext, to Christopher Chow, Special Counsel, Commission, dated
October 2, 2008.
---------------------------------------------------------------------------
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) \7\ of the
Act in general and furthers the objectives of Section 6(b)(5) \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 regulating, clearing, settling, processing
information with respect to, and facilitating transaction in
securities, and, in general to protect investors and the public
interest. The proposed rule change would assist Other-SRO Derivative
Product issuers to list on the Exchange, thus removing a potential
impediment to the mechanism of a free and open market and protecting
the public interest.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received from Members, Participants or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Within 35 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
A. By order approve the proposed rule change; or
B. Institute proceedings to determine whether the proposed rule
change should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-NYSEArca-2008-105 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSEArca-2008-105. 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
[[Page 60390]]
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-2008-105 and should be submitted on or before
October 31, 2008.
---------------------------------------------------------------------------
\9\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-24180 Filed 10-9-08; 8:45 am]
BILLING CODE 8011-01-P
