Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing of Proposed Rule Change Amending Rule 5.2(j)(6) To Increase the Permissible Aggregate Weight of Underlying Foreign Country Securities, 72546-72547 [E8-28220]
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Federal Register / Vol. 73, No. 230 / Friday, November 28, 2008 / Notices
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 such proposed
rule change, or
B. Institute proceedings to determine
whether the proposed rule change
should be disapproved.
IV. Solicitation of Comments
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.22
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–28242 Filed 11–26–08; 8:45 am]
BILLING CODE 8011–01–P
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–MSRB–2008–07 on the
subject line.
mstockstill on PROD1PC66 with NOTICES
Copies of such filing also will be
available for inspection and copying at
the principal office of the MSRB. 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–MSRB–2008–07 and should
be submitted on or before December 19,
2008.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58984; File No. SR–
NYSEArca–2008–121]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing of Proposed
Rule Change Amending Rule 5.2(j)(6)
To Increase the Permissible Aggregate
Weight of Underlying Foreign Country
Securities
November 20, 2008.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
Paper Comments
(‘‘Act’’)1 and Rule 19b–4 thereunder,2
notice is hereby given that on October
• Send paper comments in triplicate
29, 2008, NYSE Arca, Inc. (‘‘NYSE
to Secretary, Securities and Exchange
Arca’’ or ‘‘Exchange’’), through its
Commission, 100 F Street, NE.,
wholly owned subsidiary, NYSE Arca
Washington, DC 20549–1090.
Equities, Inc. (‘‘NYSE Arca Equities’’),
All submissions should refer to File
filed with the Securities and Exchange
Number SR–MSRB–2008–07. This file
Commission (‘‘Commission’’) the
number should be included on the
proposed rule change as described in
subject line if e-mail is used. To help the
Items I, II, and III below, which Items
Commission process and review your
have been prepared by NYSE Arca. The
comments more efficiently, please use
Commission is publishing this notice to
only one method. The Commission will
solicit comments on the proposed rule
post all comments on the Commission’s
change from interested persons.
Internet Web site (https://www.sec.gov/
I. Self-Regulatory Organization’s
rules/sro.shtml). Copies of the
Statement of the Terms of Substance of
submission, all subsequent
the Proposed Rule Change
amendments, all written statements
with respect to the proposed rule
The Exchange proposes to amend
change that are filed with the
Rule 5.2(j)(6) in order to permit foreign
Commission, and all written
country securities whose primary
communications relating to the
foreign markets are not subject to a
proposed rule change between the
comprehensive surveillance sharing
Commission and any person, other than agreement to account for up to 50% of
those that may be withheld from the
the aggregate weight of the index. The
public in accordance with the
text of the proposed rule change is
provisions of 5 U.S.C. 552, will be
available on the Exchange’s Web site at
available for inspection and copying in
https://www.nyse.com, at the Exchange’s
the Commission’s Public Reference
Room, 100 F Street, NE., Washington,
22 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
DC 20549, on official business days
2 17 CFR 240.19b–4.
between the hours of 10 a.m. and 3 p.m.
VerDate Aug<31>2005
17:16 Nov 26, 2008
Jkt 217001
PO 00000
Frm 00105
Fmt 4703
Sfmt 4703
principal office, and at the
Commission’s Public Reference Room.
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
Currently, the Exchange’s listing
standards for equity index linked
securities (‘‘Equity Index-Linked
Securities’’) limit the permissible
aggregate weight of underlying foreign
country securities to 20% of the overall
index where the primary trading
markets of the foreign country securities
or American Depository Receipts
(‘‘ADRs’’) are not members of the
Intermarket Surveillance Group (‘‘ISG’’)
or are not otherwise parties to
comprehensive surveillance sharing
agreements (‘‘CSSA’’) with the
Exchange. The Exchange proposes to
amend NYSE Arca Equities Rule
5.2(j)(6)(B)(I)(1)(b)(v) to increase the
permissible aggregate weight of such
underlying foreign country securities up
to 50% of the overall index.3 According
to the proposal, the Exchange will
permit the listing and trading of Equity
Index-Linked Securities where the
underlying foreign country securities or
ADRs, which trade on foreign markets
that are not ISG members or are not
otherwise subject to a CSSA agreement
with the Exchange, account for up to
50% of the aggregate dollar weight of
the index, so long as: (i) The securities
of any one primary foreign market
which is not an ISG member or does not
have a CSSA with the Exchange do not
represent more than 20% of the dollar
weight of the index, and (ii) the
securities of any two primary foreign
markets which are not ISG members or
do not have a CSSA with the Exchange
do not represent more than 33% of the
dollar weight of the index. As a result
3 E-mail from Andrew Stevens, Chief Counsel,
NYSE Euronext, to Christopher W. Chow, Special
Counsel, Commission, dated November 20, 2008.
E:\FR\FM\28NON1.SGM
28NON1
Federal Register / Vol. 73, No. 230 / Friday, November 28, 2008 / Notices
of the proposed amendment, the
Exchange also seeks to make additional
minor modifications to Rule
5.2(j)(6)(B)(I)(1)(b)(v) relating to
punctuation and format and other nonsubstantive changes.4
This amendment is consistent with
NYSE Arca Options Rule 5.3(g)(2)(A),
which establishes the standards for the
listing and trading of options on
Exchange-Traded Funds. Approved in
2001, the Commission specifically noted
in its order that requiring
comprehensive surveillance agreement
to be in place between the Exchange and
the primary markets for foreign
securities that comprise 50% or more of
the weight of the underlying index
‘‘provides an adequate mechanism for
the exchange of surveillance sharing
information necessary to detect and
deter possible market manipulation.’’ 5
The Commission also recognized that
the additional conditions regarding the
concentration of foreign securities in
any one or more uncovered countries,
ensure that a ‘‘significant percentage of
the portfolio is not made up of securities
from uncovered countries.’’ 6
The Exchange believes that the
proposed amendment does not impose
any burden on competition or
significantly affect the protection of
investors. The revised standard allows
for increased flexibility with respect to
listing and trading Equity Index-Linked
Securities, while also providing an
adequate mechanism for the exchange of
surveillance sharing information
necessary to detect and deter possible
market manipulation.
mstockstill on PROD1PC66 with NOTICES
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
4 E-mail from Tim Malinowski, Director, NYSE
Euronext, to Edward Cho, Special Counsel, Division
of Trading and Markets, Commission, dated
November 5, 2008.
5 See Securities Exchange Act Release No. 44025
(February 28, 2001), 66 FR 13986 (March 8, 2001)
(SR–PCX–01–12). This rule change is also
consistent with Commentary .06 of Rule 915 of the
American Stock Exchange, Inc. [sic] (‘‘Amex’’). See
Securities Exchange Act Release No. 40157 (July 1,
1998), 63 FR 37426 (July 10, 1998) (SR–Amex–96–
44) (order approving Commentary .06 to Amex Rule
915, establishing the 50% / 20% / 33% standards
for purposes of listing and trading options on
Exchange Traded Funds).
6 Id. See also Securities Exchange Act Release No.
40761 (December 8 1998), 63 FR 70952 (December
22, 1998) (S7–13–98) (in its guidance to selfregulatory organizations on new derivative
securities products, the Commission noted the then
recent approval of Commentary .06 to Amex Rule
915 for its discussion of an appropriate percentage
of CSSA coverage (as it pertained to the specific
product class of options)).
7 15 U.S.C. 78f(b).
8 15 U.S.C. 78f(b)(5).
VerDate Aug<31>2005
17:16 Nov 26, 2008
Jkt 217001
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
open market and a national market
system. The proposed standard, which
is consistent with NYSE Arca Options
Rule 5.3(g)(2)(A), provides an
appropriate mechanism for the
exchange of surveillance sharing
information necessary to detect and
deter possible market manipulation.
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:
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-2008–121. This
file number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Room, 100 F Street, NE., Washington,
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m.
Copies of the filing also will be available
for inspection and copying at the
principal office of the Exchange. All
comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–NYSEArca–2008–121 and
should be submitted on or before
December 19, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–28220 Filed 11–26–08; 8:45 am]
BILLING CODE 8011–01–P
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–2008–121 on
the subject line.
PO 00000
Frm 00106
Fmt 4703
Sfmt 4703
72547
9 17
CFR 200.30–3(a)(12).
E:\FR\FM\28NON1.SGM
28NON1
]]>Agencies
[Federal Register Volume 73, Number 230 (Friday, November 28, 2008)]
[Notices]
[Pages 72546-72547]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-28220]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-58984; File No. SR-NYSEArca-2008-121]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
of Proposed Rule Change Amending Rule 5.2(j)(6) To Increase the
Permissible Aggregate Weight of Underlying Foreign Country Securities
November 20, 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 October 29, 2008, NYSE Arca, Inc. (``NYSE Arca'' or ``Exchange''),
through its wholly owned subsidiary, NYSE Arca Equities, Inc. (``NYSE
Arca Equities''), filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, 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
The Exchange proposes to amend Rule 5.2(j)(6) in order to permit
foreign country securities whose primary foreign markets are not
subject to a comprehensive surveillance sharing agreement to account
for up to 50% of the aggregate weight of the index. The text of the
proposed rule change is available on the Exchange's Web site at https://
www.nyse.com, at the Exchange's principal office, and at the
Commission's Public Reference Room.
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
Currently, the Exchange's listing standards for equity index linked
securities (``Equity Index-Linked Securities'') limit the permissible
aggregate weight of underlying foreign country securities to 20% of the
overall index where the primary trading markets of the foreign country
securities or American Depository Receipts (``ADRs'') are not members
of the Intermarket Surveillance Group (``ISG'') or are not otherwise
parties to comprehensive surveillance sharing agreements (``CSSA'')
with the Exchange. The Exchange proposes to amend NYSE Arca Equities
Rule 5.2(j)(6)(B)(I)(1)(b)(v) to increase the permissible aggregate
weight of such underlying foreign country securities up to 50% of the
overall index.\3\ According to the proposal, the Exchange will permit
the listing and trading of Equity Index-Linked Securities where the
underlying foreign country securities or ADRs, which trade on foreign
markets that are not ISG members or are not otherwise subject to a CSSA
agreement with the Exchange, account for up to 50% of the aggregate
dollar weight of the index, so long as: (i) The securities of any one
primary foreign market which is not an ISG member or does not have a
CSSA with the Exchange do not represent more than 20% of the dollar
weight of the index, and (ii) the securities of any two primary foreign
markets which are not ISG members or do not have a CSSA with the
Exchange do not represent more than 33% of the dollar weight of the
index. As a result
[[Page 72547]]
of the proposed amendment, the Exchange also seeks to make additional
minor modifications to Rule 5.2(j)(6)(B)(I)(1)(b)(v) relating to
punctuation and format and other non-substantive changes.\4\
---------------------------------------------------------------------------
\3\ E-mail from Andrew Stevens, Chief Counsel, NYSE Euronext, to
Christopher W. Chow, Special Counsel, Commission, dated November 20,
2008.
\4\ E-mail from Tim Malinowski, Director, NYSE Euronext, to
Edward Cho, Special Counsel, Division of Trading and Markets,
Commission, dated November 5, 2008.
---------------------------------------------------------------------------
This amendment is consistent with NYSE Arca Options Rule
5.3(g)(2)(A), which establishes the standards for the listing and
trading of options on Exchange-Traded Funds. Approved in 2001, the
Commission specifically noted in its order that requiring comprehensive
surveillance agreement to be in place between the Exchange and the
primary markets for foreign securities that comprise 50% or more of the
weight of the underlying index ``provides an adequate mechanism for the
exchange of surveillance sharing information necessary to detect and
deter possible market manipulation.'' \5\ The Commission also
recognized that the additional conditions regarding the concentration
of foreign securities in any one or more uncovered countries, ensure
that a ``significant percentage of the portfolio is not made up of
securities from uncovered countries.'' \6\
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 44025 (February 28,
2001), 66 FR 13986 (March 8, 2001) (SR-PCX-01-12). This rule change
is also consistent with Commentary .06 of Rule 915 of the American
Stock Exchange, Inc. [sic] (``Amex''). See Securities Exchange Act
Release No. 40157 (July 1, 1998), 63 FR 37426 (July 10, 1998) (SR-
Amex-96-44) (order approving Commentary .06 to Amex Rule 915,
establishing the 50% / 20% / 33% standards for purposes of listing
and trading options on Exchange Traded Funds).
\6\ Id. See also Securities Exchange Act Release No. 40761
(December 8 1998), 63 FR 70952 (December 22, 1998) (S7-13-98) (in
its guidance to self-regulatory organizations on new derivative
securities products, the Commission noted the then recent approval
of Commentary .06 to Amex Rule 915 for its discussion of an
appropriate percentage of CSSA coverage (as it pertained to the
specific product class of options)).
---------------------------------------------------------------------------
The Exchange believes that the proposed amendment does not impose
any burden on competition or significantly affect the protection of
investors. The revised standard allows for increased flexibility with
respect to listing and trading Equity Index-Linked Securities, while
also providing an adequate mechanism for the exchange of surveillance
sharing information necessary to detect and deter possible market
manipulation.
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 facilitating transactions in securities, and to
remove impediments to and perfect the mechanisms of a free and open
market and a national market system. The proposed standard, which is
consistent with NYSE Arca Options Rule 5.3(g)(2)(A), provides an
appropriate mechanism for the exchange of surveillance sharing
information necessary to detect and deter possible market manipulation.
---------------------------------------------------------------------------
\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-2008-121 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-2008-121. This
file number should be included on the subject line if e-mail is used.
To help the Commission process and review your comments more
efficiently, please use only one method. The Commission will post all
comments on the Commission's Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the submission, all subsequent amendments,
all written statements with respect to the proposed rule change that
are filed with the Commission, and all written communications relating
to the proposed rule change between the Commission and any person,
other than those that may be withheld from the public in accordance
with the provisions of 5 U.S.C. 552, will be available for inspection
and copying in the Commission's Public Reference Room, 100 F Street,
NE., Washington, DC 20549, on official business days between the hours
of 10 a.m. and 3 p.m. Copies of the filing also will be available for
inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-NYSEArca-2008-121 and should
be submitted on or before December 19, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
---------------------------------------------------------------------------
\9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-28220 Filed 11-26-08; 8:45 am]
BILLING CODE 8011-01-P
