Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing of Proposed Rule Change Relating to the Leverage Factor Applicable to the MacroShares Major Metro Housing Trusts, 11167-11169 [E9-5568]
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Federal Register / Vol. 74, No. 49 / Monday, March 16, 2009 / Notices
are a significant alternative to the
exchange’s market data product.33
For more specific information
concerning depth, market participants
can choose among products offered by
the various exchanges and ECNs.34 The
various self-regulatory organizations,
the several Trade Reporting Facilities of
FINRA, and ECNs that produce
proprietary data are all sources of
competition. In addition, market
participants can assess depth with tools
other than market data, such as
‘‘pinging’’ orders that search out both
displayed and nondisplayed size at all
price points within an order’s limit
price.35
In sum, there are a variety of
alternative sources of information that
impose significant competitive
pressures on the NYSE in setting the
terms for distributing its depth-of-book
order data. The Commission believes
that the availability of those
alternatives, as well as the NYSE’s
compelling need to attract order flow,
imposed significant competitive
pressure on the NYSE to act equitably,
fairly, and reasonably in setting the
terms of its proposal.
Because the NYSE was subject to
significant competitive forces in setting
the terms of the proposal, the
Commission will approve the proposal
in the absence of a substantial
countervailing basis to find that its
terms nevertheless fail to meet an
applicable requirement of the Act or the
rules thereunder. Neither commenter
raised concerns with regard to a
substantial countervailing basis that the
terms of the proposal failed to meet the
requirements of the Act or the rules
thereunder. Further, an analysis of the
proposal does not provide such a basis.
The Exchange proposes to switch
from a per-device fee to a Subscriber
Entitlement fee. The Exchange is also
proposing to introduce a
nonprofessional Subscriber Fee that is
subject to a monthly maximum amount.
This change will lower the fees payable
for NYSE OpenBook data for
nonprofessional Subscribers from $60
per month to $15 per month per
individual and device. The commenters
supported NYSE’s changes to its market
data fee structure. SIFMA believes that
the unit of count pilot holds the promise
of simplified and fairer market date fee
administration that would avoid
duplicate counting of an individual
using multiple devices.36 Schwab stated
that the changes in how users are of data
33 Id.
34 See
NYSE Arca Order at 74784.
35 Id.
36 SIFMA
Letter at 2.
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15:38 Mar 13, 2009
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are counted will make the market data
billing process more efficient and
reduce administrative burdens.37
Schwab stated that the proposal would
for the first-time allow retail customers
obtain affordable depth-of-book market
data.38 The Commission believes that
this proposed rule change will provide
vendors with the flexibility to manage
NYSE market data in a manner that they
determine is most useful and efficient to
their business operations.39 In addition,
the overall reduction in costs for NYSE
OpenBook could lead to a wider
distribution of the market data and
greater market transparency.40
V. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,41 that the
proposed rule change (SR–NYSE–2008–
131) be, and hereby is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.42
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–5570 Filed 3–13–09; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59542; File No. SR–
NYSEArca–2009–14]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing of Proposed
Rule Change Relating to the Leverage
Factor Applicable to the MacroShares
Major Metro Housing Trusts
March 9, 2008.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on March 3,
2009, NYSE Arca, Inc. (‘‘NYSE Arca’’ or
the ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(the ‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the self-regulatory organization. The
37 Schwab
Letter at 2.
Letter at 1.
39 See Schwab Letter at 2 (‘‘[T]he proposal will
allow [Vendors] to manipulate the data as we
choose and to aggregate this data with data from
other exchanges to offer innovative market data
displays to our customers.’’).
40 See SIFMA Letter at 3 (‘‘SIFMA has long
advocated a nonprofessional fee for depth-of-book
data to promote market transparency and investor
protection’’).
41 15 U.S.C. 78s(b)(2).
42 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
38 Schwab
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11167
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
Pursuant to the provisions of Section
19(b)(1) of the Act,4 the Exchange,
through its wholly-owned subsidiary
NYSE Arca Equities, Inc. (‘‘NYSE Arca
Equities’’ or the ‘‘Corporation’’)
proposes to modify the representation
made in SR–NYSEArca–2008–92
regarding the leverage factor applicable
to the MacroShares Major Metro
Housing Up Trust (‘‘Up Trust’’) and the
MacroShares Major Metro Housing
Down Trust (‘‘Down Trust’’)
(collectively, the ‘‘Trusts’’), and,
specifically, to indicate that the leverage
factor to be applied will be 3 rather than
2. The shares of the Up Trust are
referred to as the Up MacroShares, and
the shares of the Down Trust are
referred to as the Down MacroShares
(collectively, the ‘‘Shares’’). 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 Public
Reference Room of the Commission.
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 the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Commission has approved
pursuant to Section 19(b)(2) of the Act
the Exchange’s proposal to list and trade
the Up MacroShares and the Down
MacroShares under NYSE Arca Equities
Rule 8.400.5 As described in the
Approval Order and Notice, the Up
4 15
U.S.C. 78s(b)(1).
Securities Exchange Act Release Nos. 58704
(October 1, 2008), 73 FR 59026 (October 8, 2008)
(order approving listing and trading on the
Exchange of the Trusts (‘‘Approval Order’’)); 58469
5 See
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Federal Register / Vol. 74, No. 49 / Monday, March 16, 2009 / Notices
Trust and the Down Trust intend to
issue Up MacroShares and Down
MacroShares, respectively, on a
continuous basis. The Up MacroShares
and the Down MacroShares represent
undivided beneficial interests in the Up
Trust and the Down Trust, respectively.
The assets of the Down Trust will
consist of an income distribution
agreement and settlement contracts
entered into with the Up Trust.
Similarly, the assets of the Up Trust will
consist of an income distribution
agreement and settlement contracts
entered into with the Down Trust.6 Each
Trust will also hold U.S. Treasuries,
repurchase agreements on U.S.
Treasuries and cash to secure its
obligations under the income
distribution agreement and the
settlement contracts. The trustee for the
Trusts is State Street Bank and Trust
Company.
As described in the Notice, the Trusts
will make quarterly distributions of net
income, if any, on the treasuries and a
final distribution of all assets they hold
on deposit on the final scheduled
termination date, an early termination
date or a redemption date. Each
quarterly and final distribution will be
based on the value of the S&P/CaseShiller Composite-10 Home Price Index
(‘‘Index’’), as well as on prevailing
interest rates on U.S. Treasury
obligations. The last published value of
the S&P/Case-Shiller Composite-10
Home Price Index is referred to as the
‘‘Reference Value of the Index’’ or
‘‘Reference Value’’, as discussed in the
Notice.7
If the Reference Value rises above its
specified starting level, the Up Trust’s
Underlying Value (as described in the
Notice) will increase to include all of its
assets plus a portion of the assets of the
paired Down Trust. This portion of
assets due from the Down Trust will be
multiplied by a specified ‘‘leverage
factor’’. Conversely, if the level of the
Reference Value of the Index falls below
its starting level on and after the closing
(September 5, 2008), 73 FR 53306 (September 15,
2008) (SR–NYSEArca–2008–92) (notice of proposed
rule change to list and trade the Trusts on the
Exchange (‘‘Notice’’)). The Shares are being offered
by the Trusts under the Securities Act of 1933, 15
U.S.C. 77a. On February 17, 2009, the depositor
filed with the Commission preliminary Registration
Statements on Form S–1 (Amendment No. 3) for the
Up MacroShares (File No. 333–151522) and for the
Down MacroShares (File No. 333–151523)
(‘‘Registration Statements’’). The descriptions
herein relating to the operation of the Trusts is
based on the Registration Statements.
6 The income distribution agreement and
applicable settlement contracts are attached as
exhibits to the Registration Statements.
7 The Reference Value of the Index is the
Reference Price for purposes of NYSE Arca Equities
Rule 8.400.
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15:38 Mar 13, 2009
Jkt 217001
date, the Up Trust’s Underlying Value
will decrease, because a portion of its
assets will be included in the
Underlying Value of its paired Down
Trust, such portion being multiplied by
the leverage factor.
Thus, an increase in the Reference
Value of the Index results in a
proportionate decrease in the
Underlying Value of the Down Trust,
multiplied by the leverage factor. A
decrease in the Reference Value of the
Index results in a proportionate increase
in the Underlying Value of the Down
Trust, multiplied by the leverage factor.
The Notice stated that the leverage
factor would be 2, as initially described
in the Registration Statements. The
Trusts now intend to utilize a leverage
factor of 3.8 The effect of this will be to
triple any increase or decrease in the
Underlying Value of the Up Trust or the
Down Trust, depending upon whether
there is an increase or decrease in the
Reference Value of the Index. This
would make the per share Underlying
Value and the market price of Up
MacroShares and Down MacroShares
more volatile than the housing prices
which those shares reference.
With the exception of U.S. Treasuries,
repurchase agreements on U.S.
Treasuries and cash, the Trusts will not
hold assets (e.g., common stocks, swaps
or options) upon which payment to
investors is based. Rather, the portion of
Trust assets due from one Trust to
another changes as a result of changes
to the Reference Value. This amount
will be multiplied by the leverage factor
of 3, but applying the leverage factor
does not otherwise affect the assets held
by the Trusts or the value of the Index.
Additional information relating to the
Trusts and Shares is available in the
Registration Statements, the Notice and
the Approval Order.9
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) 10 of the Act
in general and furthers the objectives of
Section 6(b)(5) 11 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,
8 With the exception of the proposed change to
the leverage factor, and a change in the distribution
date from a date in 2018 to a date in 2014, all
representations made by the Exchange in the Notice
continue to apply.
9 See note 5, supra.
10 15 U.S.C. 78f(b).
11 15 U.S.C. 78f(b)(5).
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and, in general, to protect investors and
the public interest. The Exchange
believes that the proposal will facilitate
the listing and trading of additional
types of exchange-traded products that
will enhance competition among market
participants, to the benefit of investors
and the marketplace. In addition, the
listing and trading criteria set forth in
NYSE Arca Equities Rule 8.400 are
intended to protect 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 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.
The Exchange has requested
accelerated approval of this proposed
rule change prior to the 30th day after
the date of publication of the notice in
the Federal Register. The Commission
is considering granting accelerated
approval of the proposed rule change at
the end of a 15-day comment period.
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
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Federal Register / Vol. 74, No. 49 / Monday, March 16, 2009 / Notices
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–NYSEArca–2009–14 on the
subject line.
DEPARTMENT OF TRANSPORTATION
Paper Comments
Request for Renewal of Currently
Approved Information Collection:
Certification of Enforcement of Vehicle
Size and Weight Laws
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–NYSEArca–2009–14. 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–2009–14 and
should be submitted on or before March
31, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–5568 Filed 3–13–09; 8:45 am]
BILLING CODE 8011–01–P
12 17
CFR 200.30–3(a)(12).
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15:38 Mar 13, 2009
Jkt 217001
Federal Highway Administration
[Docket No. FHWA–2009–0027]
AGENCY: Federal Highway
Administration (FHWA), DOT.
ACTION: Notice and request for
comments.
SUMMARY: The FHWA invites public
comments about our intention to request
the Office of Management and Budget’s
(OMB) approval for a new information
collection, which is summarized below
under SUPPLEMENTARY INFORMATION. We
are required to publish this notice in the
Federal Register by the Paperwork
Reduction Act of 1995.
DATES: Please submit comments by May
15, 2009.
ADDRESSES: You may submit comments
identified by DOT Docket ID Number
FHWA–2009–0027 by any of the
following methods:
Web Site: For access to the docket to
read background documents or
comments received go to the Federal
eRulemaking Portal: https://
www.regulations.gov. Follow the online
instructions for submitting comments.
Fax: 1–202–493–2251.
Mail: Docket Management Facility,
U.S. Department of Transportation,
West Building Ground Floor, Room
W12–140, 1200 New Jersey Avenue, SE.,
Washington, DC 20590–0001.
Hand Delivery or Courier: U.S.
Department of Transportation, West
Building Ground Floor, Room W12–140,
1200 New Jersey Avenue, SE.,
Washington, DC 20590, between 9 a.m.
and 5 p.m. ET, Monday through Friday,
except Federal holidays.
FOR FURTHER INFORMATION CONTACT: John
Nicholas (202 366–2317), Department of
Transportation, Federal Highway
Administration, Office of Freight
Management and Operations, 1200 New
Jersey Avenue, SE., Washington, DC
20590. Office hours are from 8 a.m. to
5 p.m., Monday through Friday, except
Federal holidays.
SUPPLEMENTARY INFORMATION:
Title: Certification of Enforcement of
Vehicle Size and Weight Laws.
Background: Title 23, U.S.C., section
141, requires each State, the District of
Columbia and Puerto Rico to file an
annual certification that they are
enforcing their size and weight laws on
Federal-aid highways and that their
Interstate System weight limits are
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11169
consistent with Federal requirements to
be eligible to receive an apportionment
of Federal highway trust funds. Section
141 also authorizes the Secretary to
require States to file such information as
is necessary to verify that their
certifications are accurate. To determine
whether States are adequately enforcing
their size and weight limits, each must
submit an updated plan for enforcing
their size and weight limits to the
FHWA at the beginning of each fiscal
year. At the end of the fiscal year, they
must submit their certifications and
sufficient information to verify that their
enforcement goals established in the
plan have been met. Failure of a State
to file a certification, adequately enforce
its size and weight laws and enforce
weight laws on the Interstate System
that are consistent with Federal
requirements, could result in a specified
reduction of its Federal highway fund
apportionment for the next fiscal year.
In addition, section 123 of the Surface
Transportation Assistance Act of 1978
(Pub. L. 95–599, 92 Stat.2689, 2701)
requires each jurisdiction to inventory
(1) its penalties for violation of its size
and weight laws, and (2) the term and
cost of its oversize and overweight
permits.
Respondents: The State Departments
of Transportation (or equivalent) in the
50 States, the District of Columbia, and
the Commonwealth of Puerto Rico.
Frequency: Twice annually.
Estimated Average Burden per
Response: Each response will take
approximately 40 hours.
Estimated Total Annual Burden
Hours: The estimated total annual
burden for all respondents is 4,160
hours.
Public Comments Invited: You are
asked to comment on any aspect of this
information collection, including: (1)
Whether the proposed collection is
necessary for the FHWA’s performance;
(2) the accuracy of the estimated
burdens; (3) ways for the FHWA to
enhance the quality, usefulness, and
clarity of the collected information; and
(4) ways that the burden could be
minimized, including the use of
electronic technology, without reducing
the quality of the collected information.
The agency will summarize and/or
include your comments in the request
for OMB’s clearance of this information
collection.
Authority: The Paperwork Reduction Act
of 1995; 44 U.S.C. Chapter 35, as amended;
and 49 CFR 1.48.
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]]>Agencies
[Federal Register Volume 74, Number 49 (Monday, March 16, 2009)]
[Notices]
[Pages 11167-11169]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-5568]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-59542; File No. SR-NYSEArca-2009-14]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
of Proposed Rule Change Relating to the Leverage Factor Applicable to
the MacroShares Major Metro Housing Trusts
March 9, 2008.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that, on March 3, 2009, NYSE Arca, Inc. (``NYSE Arca'' or the
``Exchange'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
below, which Items have been prepared by the self-regulatory
organization. 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\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Pursuant to the provisions of Section 19(b)(1) of the Act,\4\ the
Exchange, through its wholly-owned subsidiary NYSE Arca Equities, Inc.
(``NYSE Arca Equities'' or the ``Corporation'') proposes to modify the
representation made in SR-NYSEArca-2008-92 regarding the leverage
factor applicable to the MacroShares Major Metro Housing Up Trust (``Up
Trust'') and the MacroShares Major Metro Housing Down Trust (``Down
Trust'') (collectively, the ``Trusts''), and, specifically, to indicate
that the leverage factor to be applied will be 3 rather than 2. The
shares of the Up Trust are referred to as the Up MacroShares, and the
shares of the Down Trust are referred to as the Down MacroShares
(collectively, the ``Shares''). 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 Public Reference Room of the
Commission.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78s(b)(1).
---------------------------------------------------------------------------
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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Commission has approved pursuant to Section 19(b)(2) of the Act
the Exchange's proposal to list and trade the Up MacroShares and the
Down MacroShares under NYSE Arca Equities Rule 8.400.\5\ As described
in the Approval Order and Notice, the Up
[[Page 11168]]
Trust and the Down Trust intend to issue Up MacroShares and Down
MacroShares, respectively, on a continuous basis. The Up MacroShares
and the Down MacroShares represent undivided beneficial interests in
the Up Trust and the Down Trust, respectively.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release Nos. 58704 (October 1,
2008), 73 FR 59026 (October 8, 2008) (order approving listing and
trading on the Exchange of the Trusts (``Approval Order'')); 58469
(September 5, 2008), 73 FR 53306 (September 15, 2008) (SR-NYSEArca-
2008-92) (notice of proposed rule change to list and trade the
Trusts on the Exchange (``Notice'')). The Shares are being offered
by the Trusts under the Securities Act of 1933, 15 U.S.C. 77a. On
February 17, 2009, the depositor filed with the Commission
preliminary Registration Statements on Form S-1 (Amendment No. 3)
for the Up MacroShares (File No. 333-151522) and for the Down
MacroShares (File No. 333-151523) (``Registration Statements''). The
descriptions herein relating to the operation of the Trusts is based
on the Registration Statements.
---------------------------------------------------------------------------
The assets of the Down Trust will consist of an income distribution
agreement and settlement contracts entered into with the Up Trust.
Similarly, the assets of the Up Trust will consist of an income
distribution agreement and settlement contracts entered into with the
Down Trust.\6\ Each Trust will also hold U.S. Treasuries, repurchase
agreements on U.S. Treasuries and cash to secure its obligations under
the income distribution agreement and the settlement contracts. The
trustee for the Trusts is State Street Bank and Trust Company.
---------------------------------------------------------------------------
\6\ The income distribution agreement and applicable settlement
contracts are attached as exhibits to the Registration Statements.
---------------------------------------------------------------------------
As described in the Notice, the Trusts will make quarterly
distributions of net income, if any, on the treasuries and a final
distribution of all assets they hold on deposit on the final scheduled
termination date, an early termination date or a redemption date. Each
quarterly and final distribution will be based on the value of the S&P/
Case-Shiller Composite-10 Home Price Index (``Index''), as well as on
prevailing interest rates on U.S. Treasury obligations. The last
published value of the S&P/Case-Shiller Composite-10 Home Price Index
is referred to as the ``Reference Value of the Index'' or ``Reference
Value'', as discussed in the Notice.\7\
---------------------------------------------------------------------------
\7\ The Reference Value of the Index is the Reference Price for
purposes of NYSE Arca Equities Rule 8.400.
---------------------------------------------------------------------------
If the Reference Value rises above its specified starting level,
the Up Trust's Underlying Value (as described in the Notice) will
increase to include all of its assets plus a portion of the assets of
the paired Down Trust. This portion of assets due from the Down Trust
will be multiplied by a specified ``leverage factor''. Conversely, if
the level of the Reference Value of the Index falls below its starting
level on and after the closing date, the Up Trust's Underlying Value
will decrease, because a portion of its assets will be included in the
Underlying Value of its paired Down Trust, such portion being
multiplied by the leverage factor.
Thus, an increase in the Reference Value of the Index results in a
proportionate decrease in the Underlying Value of the Down Trust,
multiplied by the leverage factor. A decrease in the Reference Value of
the Index results in a proportionate increase in the Underlying Value
of the Down Trust, multiplied by the leverage factor.
The Notice stated that the leverage factor would be 2, as initially
described in the Registration Statements. The Trusts now intend to
utilize a leverage factor of 3.\8\ The effect of this will be to triple
any increase or decrease in the Underlying Value of the Up Trust or the
Down Trust, depending upon whether there is an increase or decrease in
the Reference Value of the Index. This would make the per share
Underlying Value and the market price of Up MacroShares and Down
MacroShares more volatile than the housing prices which those shares
reference.
---------------------------------------------------------------------------
\8\ With the exception of the proposed change to the leverage
factor, and a change in the distribution date from a date in 2018 to
a date in 2014, all representations made by the Exchange in the
Notice continue to apply.
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With the exception of U.S. Treasuries, repurchase agreements on
U.S. Treasuries and cash, the Trusts will not hold assets (e.g., common
stocks, swaps or options) upon which payment to investors is based.
Rather, the portion of Trust assets due from one Trust to another
changes as a result of changes to the Reference Value. This amount will
be multiplied by the leverage factor of 3, but applying the leverage
factor does not otherwise affect the assets held by the Trusts or the
value of the Index.
Additional information relating to the Trusts and Shares is
available in the Registration Statements, the Notice and the Approval
Order.\9\
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\9\ See note 5, supra.
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2. Statutory Basis
The proposed rule change is consistent with Section 6(b) \10\ of
the Act in general and furthers the objectives of Section 6(b)(5) \11\
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 Exchange believes that the proposal will facilitate the
listing and trading of additional types of exchange-traded products
that will enhance competition among market participants, to the benefit
of investors and the marketplace. In addition, the listing and trading
criteria set forth in NYSE Arca Equities Rule 8.400 are intended to
protect investors and the public interest.
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\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
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.
The Exchange has requested accelerated approval of this proposed
rule change prior to the 30th day after the date of publication of the
notice in the Federal Register. The Commission is considering granting
accelerated approval of the proposed rule change at the end of a 15-day
comment period.
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
[[Page 11169]]
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-NYSEArca-2009-14 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSEArca-2009-14. 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-2009-14 and should
be submitted on or before March 31, 2009.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-5568 Filed 3-13-09; 8:45 am]
BILLING CODE 8011-01-P
