Self-Regulatory Organizations; NYSE Arca, Inc.; Order Granting Approval of Proposed Rule Change Relating to Listing and Trading Shares of the ETFS Platinum Trust, 68886-68888 [E9-30789]
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68886
Federal Register / Vol. 74, No. 248 / Tuesday, December 29, 2009 / Notices
of the Act 5 and Rule 19b–4(f)(6) 6
thereunder.
This proposed rule change does not
significantly affect the protection of
investors or the public interest, does not
impose any significant burden on
competition, and, by its terms, does not
become operative for 30 days after the
date of the filing, or such shorter time
as the Commission may designate if
consistent with the protection of
investors and the public interest. The
Exchange provided the Commission
with written notice of its intent to file
this proposed rule change at least five
business days prior to the date of filing
of the proposed rule change. This
proposal amends ISE Rule 622 to
conform the language to comparable
NASD Rule 11870 for the purpose an
agreement that was recently approved
by the Commission under Rule 17d–2.
The Exchange requests that the
Commission waive the 30-day operative
delay period for ‘‘non-controversial’’
proposals under Exchange Act Rule
19b–4(f)(6) and make the proposed rule
change effective and operative upon
filing.
The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest
because it will help foster consistency
between the rulebooks of the selfregulatory organizations.7 Application
of the new rules should promote clarity
for market participants relying upon the
rules. For these reasons, the
Commission designates that the
proposed rule change become
immediately operative.
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:
pwalker on DSK8KYBLC1PROD 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–ISE–2009–104 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–ISE–2009–104. 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 8, 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 such filing also will be
available for inspection and copying at
the principal office of the Exchange. All
comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make publicly available. All
submissions should refer to File
Number SR–ISE–2009–104 and should
be submitted on or before January 19,
2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–30791 Filed 12–28–09; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61219; File No. SR–
NYSEArca–2009–95]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Order Granting Approval of
Proposed Rule Change Relating to
Listing and Trading Shares of the
ETFS Platinum Trust
December 22, 2009.
I. Introduction
On October 20, 2009, NYSE Arca, Inc.
(‘‘NYSE Arca’’ or ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’)1 and Rule
19b–4 thereunder,2 a proposed rule
change to list and trade shares
(‘‘Shares’’) of the ETFS Platinum Trust
(the ‘‘Trust’’). The proposed rule change
was published for comment in the
Federal Register on November 17,
2009.3 The Commission received no
comments on the proposal. This order
approves the proposed rule change.
II. Description of the Proposal
The Exchange proposes to list and
trade the Shares pursuant to NYSE Arca
Equities Rule 8.201, which governs the
listing and trading of Commodity-Based
Trust Shares. The Exchange represents
that the Shares satisfy the requirements
of NYSE Arca Equities Rule 8.201 and
thereby qualify for listing on the
Exchange.
The Shares represent units of
fractional undivided beneficial interest
in and ownership of the Trust. The
investment objective of the Trust is for
the Shares to reflect the performance of
the price of platinum, less the expenses
of the Trust’s operations.4
The Exchange deems the Shares to be
equity securities, which subjects trading
in the Shares to the Exchange’s existing
rules governing the trading of equity
securities, and has represented that
trading in the Shares on the Exchange
will occur in accordance with NYSE
Arca Equities Rule 7.34(a). The
Exchange has also represented that it
has appropriate rules to facilitate
transactions in the Shares during all
trading sessions.
Additional details regarding the
Shares and Trust including, among
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 60970
(November 9, 2009), 74 FR 59319 (‘‘Notice’’).
4 Amendment No. 2 to the Registration Statement
for the ETFS Platinum Trust on Form S–1, filed
with the Commission on October 20, 2009 (No.
333–15831) (‘‘Registration Statement’’).
2 17
5 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
7 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposal’s impact on efficiency, competition, and
capital formation. 15 U.S.C. 78c(f).
6 17
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19:02 Dec 28, 2009
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8 The text of the proposed rule change is available
on the Commission’s Web site at https://
www.sec.gov/.
9 17 CFR 200.30–3(a)(12).
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Federal Register / Vol. 74, No. 248 / Tuesday, December 29, 2009 / Notices
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other things, creations and redemptions
of the Shares, the organization and
structure of the Trust, custody of the
Trust’s holdings, Trust expenses, Trust
termination events, the international
market for platinum, the platinum
futures market, the dissemination and
availability of information about the
underlying assets, trading halts,
applicable trading rules, surveillance,
and the Information Bulletin can be
found in the Notice and/or the
Registration Statement.5
III. Discussion and Commission’s
Findings
After careful consideration, the
Commission finds that the proposed
rule change is consistent with the
requirements of the Act and the rules
and regulations thereunder applicable to
a national securities exchange.6 In
particular, the Commission finds that
the proposed rule change is consistent
with the requirements of Section 6(b)(5)
of the Act,7 which requires, among other
things, that the Exchange’s rules be
designed 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 transactions in
securities, to remove impediments to
and perfect the mechanism of a free and
open market and a national market
system, and, in general, to protect
investors and the public interest.
In addition, the Commission finds
that the proposal to list and trade the
Shares on the Exchange is consistent
with Section 11A(a)(1)(C)(iii) of the
Act,8 which sets forth Congress’ finding
that it is in the public interest and
appropriate for the protection of
investors and the maintenance of fair
and orderly markets to assure the
availability to brokers, dealers and
investors of information with respect to
quotations for and transactions in
securities. Quotation and last-sale
information for the Shares will be
available via the Consolidated Tape
Association CQ High-Speed Lines. The
Trust’s Web site will provide the
following information: (1) An intraday
indicative value (‘‘IIV’’) per share for the
Shares, updated at least every 15
seconds, as calculated by the Exchange
or a third party financial data provider,
during the Exchange’s Core Trading
Session (9:30 AM to 4:00 PM, Eastern
5 See
supra notes 3 and 4.
approving this proposed rule change, the
Commission notes that it has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
7 15 U.S.C. 78f(b)(5).
8 15 U.S.C. 78k–1(a)(1)(C)(iii).
6 In
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19:02 Dec 28, 2009
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Standard Time); (2) the net asset value
(‘‘NAV’’) of the Trust as calculated each
business day by the Sponsor; (3) the
NAV, on a per Share basis, as of the
close of the prior business day; (4) the
mid-point of the bid-ask price 9 at the
close of trading in relation to such NAV
(‘‘Bid/Ask Price’’); (5) a calculation of
the premium or discount of such price
against such NAV; (6) data in chart
format displaying the frequency
distribution of discounts and premiums
of the Bid/Ask Price against the per
Share NAV, within appropriate ranges,
for each of the four previous calendar
quarters; (7) the Creation Basket
Deposit; (8) the Trust’s prospectus; (9)
the two most recent reports to
stockholders; and (10) the last sale price
of the Shares as traded in the US
market.10 In addition, the Exchange will
make available over the Consolidated
Tape quotation information, trading
volume, closing prices and NAV for the
Shares from the previous day.
The Commission further believes that
the proposal to list and trade the Shares
is reasonably designed to promote fair
disclosure of information that may be
necessary to price the Shares
appropriately and to prevent trading
when a reasonable degree of
transparency cannot be assured.
Under NYSE Arca Equities Rule
7.34(a)(5), if the Exchange becomes
aware that the NAV is not being
disseminated to all market participants
at the same time, it must halt trading in
on NYSE Arca Marketplace until such
time as the NAV is available to all
market participants. The Commission
notes that the Exchange will obtain a
representation from the Trust that the
NAV per Share will be calculated daily
and that the NAV will be made available
to all market participants at the same
time.11 Additionally, if the IIV 12 is not
being disseminated as required, the
Exchange may halt trading during the
day in which the disruption occurs; if
the interruption persists past the day in
which it occurred, the Exchange will
halt trading no later than the beginning
of the trading day following the
9 The bid-ask price of the Trust is determined
using the highest bid and lowest offer on the
Consolidated Tape as of the time of calculation of
the closing day NAV.
10 The Exchange will provide on its Web site
(https://www.nyx.com) a link to the Trust’s Web site.
11 See e-mail from Michael Cavalier, Chief
Counsel, NYSE Euronext, to Christopher W. Chow,
Special Counsel, and Andrew Madar, Special
Counsel, Commission, dated December 10, 2009.
12 For the Shares, the Exchange uses IIV and ITV
interchangeably. See e-mail from Michael Cavalier,
Chief Counsel, NYSE Euronext, to Christopher W.
Chow, Special Counsel, Commission, dated
December 22, 2009.
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68887
interruption.13 Further, the Exchange
will consider the suspension of trading
in or removal from listing of the Shares
pursuant to NYSE Arca Rule 8.201(e)(2)
if: (1) the value of platinum is no longer
calculated or available on at least a 15second delayed basis from a source
unaffiliated with the sponsor, Trust,
custodian or the Exchange or the
Exchange stops providing a hyperlink
on its Web site to any such unaffiliated
commodity value; or (2) the IIV is no
longer made available on at least a 15second delayed basis. With respect to
trading halts, the Exchange may
consider all relevant factors in
exercising its discretion to halt or
suspend trading in the Shares. Trading
on the Exchange in the Shares may be
halted because of market conditions or
for reasons that, in the view of the
Exchange, make trading in the Shares
inadvisable. These may include: (1) the
extent to which conditions in the
underlying platinum market have
caused disruptions and/or lack of
trading, or (2) whether other unusual
conditions or circumstances detrimental
to the maintenance of a fair and orderly
market are present. In addition, trading
in Shares will be subject to trading halts
caused by extraordinary market
volatility pursuant to the Exchange’s
‘‘circuit breaker’’ rule.
In addition, NYSE Arca Equities Rule
8.201 sets forth certain requirements for
ETP Holders acting as registered Market
Makers in the Shares. Pursuant to NYSE
Arca Equities Rule 8.201(h), an ETP
Holder acting as a registered Market
Maker in the Shares is required to
provide the Exchange with information
relating to its trading in platinum,
related futures or options on futures, or
any other related derivatives, which the
Market Maker may have or over which
it may exercise investment discretion.
NYSE Arca Equities Rule 8.201(i) also
prohibits an ETP Holder acting as a
registered Market Maker in the Shares
from using any material nonpublic
information received from any person
associated with an ETP Holder or
employee of such person regarding
trading by such person or employee in
platinum, related futures or options on
futures or any other related commodity
derivatives.
In support of this proposal, the
Exchange has made representations,
including:
(1) The Shares will be subject to the
initial and continued listing criteria
under NYSE Arca Equities Rule 8.201.
(2) The Exchange’s surveillance
procedures are adequate to properly
monitor Exchange trading of the Shares
13 See
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Federal Register / Vol. 74, No. 248 / Tuesday, December 29, 2009 / Notices
in all trading sessions and to deter and
detect violations of Exchange rules and
applicable federal securities laws.
Pursuant to NYSE Arca Equities Rule
8.201(h), the Exchange is able to obtain
information regarding trading in the
Shares and the underlying platinum,
platinum futures contracts, options on
platinum futures, or any other platinum
derivative, through ETP Holders acting
as registered Market Makers, in
connection with such ETP Holders’
proprietary or customer trades which
they effect on any relevant market. In
addition, the Exchange may obtain
trading information via the Intermarket
Surveillance Group (‘‘ISG’’) from other
exchanges who are members of the ISG.
(3) Prior to the commencement of
trading, the Exchange will inform its
ETP Holders in an Information Bulletin
of the special characteristics and risks
associated with trading the Shares.
Specifically, the Information Bulletin
will discuss the following: (a) The
procedures for purchases and
redemptions of Shares in Baskets
(including noting that Shares are not
individually redeemable); (b) NYSE
Arca Equities Rule 9.2(a), which
imposes a duty of due diligence on its
ETP Holders to learn the essential facts
relating to every customer prior to
trading the Shares; (c) how information
regarding the IIV is disseminated; (d)
the requirement that ETP Holders
deliver a prospectus to investors
purchasing newly issued Shares prior to
or concurrently with the confirmation of
a transaction; (e) the possibility that
trading spreads and the resulting
premium or discount on the Shares may
widen as a result of reduced liquidity of
platinum trading during the Core and
Late Trading Sessions after the close of
the major world platinum markets; and
(f) trading information.
This approval order is based on the
Exchange’s representations.
For the foregoing reasons, the
Commission finds that the proposed
rule change is consistent with Section
6(b)(5) of the Act 14 and the rules and
regulations thereunder applicable to a
national securities exchange.
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IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,15 that the
proposed rule change (SR–NYSEArca–
2009–95), be, and it hereby is, approved.
14 15
15 15
U.S.C. 78f(b)(5).
U.S.C. 78s(b)(2).
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19:02 Dec 28, 2009
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For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–30789 Filed 12–28–09; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61215; File No. SR–NSCC–
2009–10]
Self-Regulatory Organizations;
National Securities Clearing
Corporation; Notice of Filing and Order
Granting Accelerated Approval of a
Proposed Rule Change Regarding
National Securities Clearing
Corporation’s Board of Directors
Election Process and Delegation
Authority
December 22, 2009.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
December 16, 2009, National Securities
Clearing Corporation (‘‘NSCC’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which items have
been prepared primarily by NSCC. The
Commission is publishing this notice
and order to solicit comments on the
proposed rule change from interested
persons and to grant approval on an
accelerated basis.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
NSCC’s parent company, The
Depository Trust & Clearing Corporation
(‘‘DTCC’’) intends in the future to
consider nominating for election to its
Board of Directors candidates that are
not participants of its clearing agency
subsidiaries (‘‘non-participant
candidates’’).2 Because certain of
DTCC’s organizational documents
mandate that the directors of DTCC
shall be the same as the directors of
NSCC, in the future NSCC’s Board of
Directors may include directors who are
not employees of its participants (‘‘nonparticipant directors’’).
In addition, the rules of NSCC are
being revised to allow the Board to
delegate certain responsibilities.
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 DTCC’s clearing corporation subsidiary
participants include The Depository Trust
Company, National Securities Clearing Corporation,
and Fixed Income Clearing Corporation.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
NSCC included statements concerning
the purpose of and basis for the
proposed rule change and discussed any
comments it received on the proposed
rule change. The text of these statements
may be examined at the places specified
in Item IV below. NSCC has prepared
summaries, set forth in sections (A), (B),
and (C) below, of the most significant
aspects of such statements.3
(A) Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
DTCC has in the past nominated for
election to its Board of Directors
employees of its clearing corporation
subsidiaries’ participants. In the future,
DTCC intends to consider nominating
for election to its Board of Directors
people who are not employees of its
clearing corporation subsidiaries’
participants (‘‘non-participant
candidates’’). Because certain of DTCC’s
organizational documents mandate that
the directors of DTCC shall be the same
as the directors of NSCC, in the future
NSCC’s Board may include directors
who are not employees of its
participants (‘‘non-participant
directors’’). NSCC believes that nonparticipant directors may bring
additional skills and expertise and
introduce different perspectives to its
Board.
In addition, the rules of NSCC
currently assign to its Board certain
responsibilities such as, for example,
responsibilities related to approving
membership applications and other
related matters. NSCC is revising its
rules to allow its Board to delegate such
responsibilities.4
These changes will conform NSCC’s
rules and practices to the rules and
practices of DTCC’s other clearing
corporation subsidiaries—The
Depository Trust Company and Fixed
Income Clearing Corporation.
NSCC believes that the proposed rule
change is consistent with the
requirements of Section 17A of the Act
and the rules and regulations
thereunder applicable to NSCC because
NSCC’s rules will continue to provide
for a fair representation of its
participants in the selection of its
16 17
1 15
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3 The Commission has modified parts of these
statements.
4 The text of the proposed rule change can be
found at https://www.dtcc.com/downloads/legal/
rule_filings/2009/nscc/2009-10.pdf.
E:\FR\FM\29DEN1.SGM
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]]>Agencies
[Federal Register Volume 74, Number 248 (Tuesday, December 29, 2009)]
[Notices]
[Pages 68886-68888]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-30789]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-61219; File No. SR-NYSEArca-2009-95]
Self-Regulatory Organizations; NYSE Arca, Inc.; Order Granting
Approval of Proposed Rule Change Relating to Listing and Trading Shares
of the ETFS Platinum Trust
December 22, 2009.
I. Introduction
On October 20, 2009, NYSE Arca, Inc. (``NYSE Arca'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'')\1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change to list and trade shares (``Shares'') of the ETFS
Platinum Trust (the ``Trust''). The proposed rule change was published
for comment in the Federal Register on November 17, 2009.\3\ The
Commission received no comments on the proposal. This order approves
the proposed rule change.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 60970 (November 9,
2009), 74 FR 59319 (``Notice'').
---------------------------------------------------------------------------
II. Description of the Proposal
The Exchange proposes to list and trade the Shares pursuant to NYSE
Arca Equities Rule 8.201, which governs the listing and trading of
Commodity-Based Trust Shares. The Exchange represents that the Shares
satisfy the requirements of NYSE Arca Equities Rule 8.201 and thereby
qualify for listing on the Exchange.
The Shares represent units of fractional undivided beneficial
interest in and ownership of the Trust. The investment objective of the
Trust is for the Shares to reflect the performance of the price of
platinum, less the expenses of the Trust's operations.\4\
---------------------------------------------------------------------------
\4\ Amendment No. 2 to the Registration Statement for the ETFS
Platinum Trust on Form S-1, filed with the Commission on October 20,
2009 (No. 333-15831) (``Registration Statement'').
---------------------------------------------------------------------------
The Exchange deems the Shares to be equity securities, which
subjects trading in the Shares to the Exchange's existing rules
governing the trading of equity securities, and has represented that
trading in the Shares on the Exchange will occur in accordance with
NYSE Arca Equities Rule 7.34(a). The Exchange has also represented that
it has appropriate rules to facilitate transactions in the Shares
during all trading sessions.
Additional details regarding the Shares and Trust including, among
[[Page 68887]]
other things, creations and redemptions of the Shares, the organization
and structure of the Trust, custody of the Trust's holdings, Trust
expenses, Trust termination events, the international market for
platinum, the platinum futures market, the dissemination and
availability of information about the underlying assets, trading halts,
applicable trading rules, surveillance, and the Information Bulletin
can be found in the Notice and/or the Registration Statement.\5\
---------------------------------------------------------------------------
\5\ See supra notes 3 and 4.
---------------------------------------------------------------------------
III. Discussion and Commission's Findings
After careful consideration, the Commission finds that the proposed
rule change is consistent with the requirements of the Act and the
rules and regulations thereunder applicable to a national securities
exchange.\6\ In particular, the Commission finds that the proposed rule
change is consistent with the requirements of Section 6(b)(5) of the
Act,\7\ which requires, among other things, that the Exchange's rules
be designed 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 transactions in securities, to remove impediments to and
perfect the mechanism of a free and open market and a national market
system, and, in general, to protect investors and the public interest.
---------------------------------------------------------------------------
\6\ In approving this proposed rule change, the Commission notes
that it has considered the proposed rule's impact on efficiency,
competition, and capital formation. See 15 U.S.C. 78c(f).
\7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
In addition, the Commission finds that the proposal to list and
trade the Shares on the Exchange is consistent with Section
11A(a)(1)(C)(iii) of the Act,\8\ which sets forth Congress' finding
that it is in the public interest and appropriate for the protection of
investors and the maintenance of fair and orderly markets to assure the
availability to brokers, dealers and investors of information with
respect to quotations for and transactions in securities. Quotation and
last-sale information for the Shares will be available via the
Consolidated Tape Association CQ High-Speed Lines. The Trust's Web site
will provide the following information: (1) An intraday indicative
value (``IIV'') per share for the Shares, updated at least every 15
seconds, as calculated by the Exchange or a third party financial data
provider, during the Exchange's Core Trading Session (9:30 AM to 4:00
PM, Eastern Standard Time); (2) the net asset value (``NAV'') of the
Trust as calculated each business day by the Sponsor; (3) the NAV, on a
per Share basis, as of the close of the prior business day; (4) the
mid-point of the bid-ask price \9\ at the close of trading in relation
to such NAV (``Bid/Ask Price''); (5) a calculation of the premium or
discount of such price against such NAV; (6) data in chart format
displaying the frequency distribution of discounts and premiums of the
Bid/Ask Price against the per Share NAV, within appropriate ranges, for
each of the four previous calendar quarters; (7) the Creation Basket
Deposit; (8) the Trust's prospectus; (9) the two most recent reports to
stockholders; and (10) the last sale price of the Shares as traded in
the US market.\10\ In addition, the Exchange will make available over
the Consolidated Tape quotation information, trading volume, closing
prices and NAV for the Shares from the previous day.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78k-1(a)(1)(C)(iii).
\9\ The bid-ask price of the Trust is determined using the
highest bid and lowest offer on the Consolidated Tape as of the time
of calculation of the closing day NAV.
\10\ The Exchange will provide on its Web site (https://www.nyx.com) a link to the Trust's Web site.
---------------------------------------------------------------------------
The Commission further believes that the proposal to list and trade
the Shares is reasonably designed to promote fair disclosure of
information that may be necessary to price the Shares appropriately and
to prevent trading when a reasonable degree of transparency cannot be
assured.
Under NYSE Arca Equities Rule 7.34(a)(5), if the Exchange becomes
aware that the NAV is not being disseminated to all market participants
at the same time, it must halt trading in on NYSE Arca Marketplace
until such time as the NAV is available to all market participants. The
Commission notes that the Exchange will obtain a representation from
the Trust that the NAV per Share will be calculated daily and that the
NAV will be made available to all market participants at the same
time.\11\ Additionally, if the IIV \12\ is not being disseminated as
required, the Exchange may halt trading during the day in which the
disruption occurs; if the interruption persists past the day in which
it occurred, the Exchange will halt trading no later than the beginning
of the trading day following the interruption.\13\ Further, the
Exchange will consider the suspension of trading in or removal from
listing of the Shares pursuant to NYSE Arca Rule 8.201(e)(2) if: (1)
the value of platinum is no longer calculated or available on at least
a 15-second delayed basis from a source unaffiliated with the sponsor,
Trust, custodian or the Exchange or the Exchange stops providing a
hyperlink on its Web site to any such unaffiliated commodity value; or
(2) the IIV is no longer made available on at least a 15-second delayed
basis. With respect to trading halts, the Exchange may consider all
relevant factors in exercising its discretion to halt or suspend
trading in the Shares. Trading on the Exchange in the Shares may be
halted because of market conditions or for reasons that, in the view of
the Exchange, make trading in the Shares inadvisable. These may
include: (1) the extent to which conditions in the underlying platinum
market have caused disruptions and/or lack of trading, or (2) whether
other unusual conditions or circumstances detrimental to the
maintenance of a fair and orderly market are present. In addition,
trading in Shares will be subject to trading halts caused by
extraordinary market volatility pursuant to the Exchange's ``circuit
breaker'' rule.
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\11\ See e-mail from Michael Cavalier, Chief Counsel, NYSE
Euronext, to Christopher W. Chow, Special Counsel, and Andrew Madar,
Special Counsel, Commission, dated December 10, 2009.
\12\ For the Shares, the Exchange uses IIV and ITV
interchangeably. See e-mail from Michael Cavalier, Chief Counsel,
NYSE Euronext, to Christopher W. Chow, Special Counsel, Commission,
dated December 22, 2009.
\13\ See id.
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In addition, NYSE Arca Equities Rule 8.201 sets forth certain
requirements for ETP Holders acting as registered Market Makers in the
Shares. Pursuant to NYSE Arca Equities Rule 8.201(h), an ETP Holder
acting as a registered Market Maker in the Shares is required to
provide the Exchange with information relating to its trading in
platinum, related futures or options on futures, or any other related
derivatives, which the Market Maker may have or over which it may
exercise investment discretion. NYSE Arca Equities Rule 8.201(i) also
prohibits an ETP Holder acting as a registered Market Maker in the
Shares from using any material nonpublic information received from any
person associated with an ETP Holder or employee of such person
regarding trading by such person or employee in platinum, related
futures or options on futures or any other related commodity
derivatives.
In support of this proposal, the Exchange has made representations,
including:
(1) The Shares will be subject to the initial and continued listing
criteria under NYSE Arca Equities Rule 8.201.
(2) The Exchange's surveillance procedures are adequate to properly
monitor Exchange trading of the Shares
[[Page 68888]]
in all trading sessions and to deter and detect violations of Exchange
rules and applicable federal securities laws. Pursuant to NYSE Arca
Equities Rule 8.201(h), the Exchange is able to obtain information
regarding trading in the Shares and the underlying platinum, platinum
futures contracts, options on platinum futures, or any other platinum
derivative, through ETP Holders acting as registered Market Makers, in
connection with such ETP Holders' proprietary or customer trades which
they effect on any relevant market. In addition, the Exchange may
obtain trading information via the Intermarket Surveillance Group
(``ISG'') from other exchanges who are members of the ISG.
(3) Prior to the commencement of trading, the Exchange will inform
its ETP Holders in an Information Bulletin of the special
characteristics and risks associated with trading the Shares.
Specifically, the Information Bulletin will discuss the following: (a)
The procedures for purchases and redemptions of Shares in Baskets
(including noting that Shares are not individually redeemable); (b)
NYSE Arca Equities Rule 9.2(a), which imposes a duty of due diligence
on its ETP Holders to learn the essential facts relating to every
customer prior to trading the Shares; (c) how information regarding the
IIV is disseminated; (d) the requirement that ETP Holders deliver a
prospectus to investors purchasing newly issued Shares prior to or
concurrently with the confirmation of a transaction; (e) the
possibility that trading spreads and the resulting premium or discount
on the Shares may widen as a result of reduced liquidity of platinum
trading during the Core and Late Trading Sessions after the close of
the major world platinum markets; and (f) trading information.
This approval order is based on the Exchange's representations.
For the foregoing reasons, the Commission finds that the proposed
rule change is consistent with Section 6(b)(5) of the Act \14\ and the
rules and regulations thereunder applicable to a national securities
exchange.
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\14\ 15 U.S.C. 78f(b)(5).
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IV. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\15\ that the proposed rule change (SR-NYSEArca-2009-95), be, and
it hereby is, approved.
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\15\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
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\16\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-30789 Filed 12-28-09; 8:45 am]
BILLING CODE 8011-01-P
