Self-Regulatory Organizations; NYSE Arca, Inc.; Order Granting Approval of Proposed Rule Change To List and Trade Shares of the ETFS White Metals Basket Trust, 56156-56158 [2010-22948]

Download as PDF 56156 Federal Register / Vol. 75, No. 178 / Wednesday, September 15, 2010 / Notices increase in liquidity will benefit investors and serve 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 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 The Exchange has neither solicited nor received comments on the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action 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.12 At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments srobinson on DSKHWCL6B1PROD with NOTICES • 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–BX–2010–062 on the subject line. 12 Rule 19b–4(f)(6)(iii) requires the self-regulatory organization to submit to the Commission written notice of its intent to file the proposed rule change, along with a brief description and text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. The Exchange has satisfied the fiveday pre-filing requirement. VerDate Mar<15>2010 18:57 Sep 14, 2010 Jkt 220001 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–BX–2010–062. 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 Web site viewing and printing 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–BX– 2010–062 and should be submitted on or before October 6, 2010. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.13 Elizabeth M. Murphy, Secretary. [FR Doc. 2010–22946 Filed 9–14–10; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–62875; File No. SR– NYSEArca–2010–71] Self-Regulatory Organizations; NYSE Arca, Inc.; Order Granting Approval of Proposed Rule Change To List and Trade Shares of the ETFS White Metals Basket Trust September 9, 2010. I. Introduction On July 22, 2010, NYSE Arca, Inc. (‘‘Exchange’’ or ‘‘NYSE Arca’’) 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 White Metals Basket Trust (‘‘Trust’’) pursuant to NYSE Arca Equities Rule 8.201. The proposed rule change was published for comment in the Federal Register on August 6, 2010.3 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 Shares pursuant to NYSE Arca Equities Rule 8.201, which governs the listing and trading of Commodity-Based Trust Shares. ETFS Services USA LLC is the sponsor of the Trust (‘‘Sponsor’’), The Bank of New York Mellon is the trustee of the Trust (‘‘Trustee’’), and JPMorgan Chase Bank, N.A. is the custodian of the Trust (‘‘Custodian’’). 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 physical silver, platinum, and palladium in the proportions held by the Trust, 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 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 See Securities Exchange Act Release No. 62620 (July 30, 2010), 75 FR 47655 (‘‘Notice’’). 4 See the registration statement for the Trust on Form S–1, filed with the Commission on May 27, 2010 (No. 333–167166) (‘‘Registration Statement’’). 2 17 13 17 PO 00000 CFR 200.30–3(a)(12). Frm 00106 Fmt 4703 Sfmt 4703 E:\FR\FM\15SEN1.SGM 15SEN1 Federal Register / Vol. 75, No. 178 / Wednesday, September 15, 2010 / Notices transactions in the Shares during all trading sessions. Additional information regarding the Trust, the Shares, the Trust’s investment objectives, strategies, policies, and restrictions, fees and expenses, creation and redemption of Shares, the Bullion markets, availability of information, trading rules and halts, and surveillance procedures, among other things, can be found in the Notice and in the Registration Statement.5 III. Discussion and Commission’s Findings After careful consideration, the Commission finds that the proposed rule change to list and trade the Shares of the Fund 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 prevent fraudulent and manipulative acts and practices, promote just and equitable principles of trade, foster cooperation and coordination with persons engaged in facilitating transactions in securities, remove impediments to and perfect the mechanism of a free and open market and a national market system, and in general to protect investors and the public interest. The Commission also 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’s 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 disseminated through the facilities of the Consolidated Tape Association. In addition, the Trust’s website will provide an intraday indicative value (‘‘IIV’’) per Share,9 updated at least every 15 seconds, as calculated by the Exchange or a third srobinson on DSKHWCL6B1PROD with NOTICES 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). 9 The IIV is calculated by multiplying the indicative spot price of Bullion by the quantity of Bullion backing each Share as of the last calculation date. 6 In VerDate Mar<15>2010 18:57 Sep 14, 2010 Jkt 220001 party financial data provider, during the Exchange’s Core Trading Session (9:30 a.m. to 4 p.m. E.T.). The Trust’s website also will provide the following information: (1) The net asset value (‘‘NAV’’) of the Trust, on a per Share basis, as calculated each business day by the Sponsor and the mid-point of the bid-ask price 10 at the close of trading in relation to such NAV (‘‘Bid/Ask Price’’), and a calculation of the premium or discount of such price against such NAV; (2) data in chart format displaying the frequency distribution of discounts and premiums of the Bid/Ask Price against the NAV, within appropriate ranges, for each of the four previous calendar quarters; (3) the Creation Basket Deposit; (4) the Trust’s prospectus, and the two most recent reports to stockholders; and (5) the last sale price of the Shares as traded in the US market. Further, the Exchange will make available over the Consolidated Tape trading volume, closing prices and NAV for the Shares from the previous day. There is a considerable amount of Bullion market information available on public websites and through professional and subscription services. For example, investors may obtain on a 24-hour basis Bullion pricing information based on the spot price for an ounce of Bullion from various financial information service providers, such as Reuters and Bloomberg. Reuters and Bloomberg provide at no charge on their websites delayed information regarding the spot price of Bullion and last sale prices of Bullion futures, as well as information about news and developments in the Bullion market. Reuters and Bloomberg also offer a professional service to subscribers for a fee that provides information on Bullion prices directly from market participants. Meanwhile, other public websites provide information on Bullion, ranging from those specializing in precious metals to sites maintained by major newspapers, such as The Wall Street Journal. In addition, the London AM Fix and London PM Fix are publicly available at no charge at https:// www.thebulliondesk.com. 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. The Exchange states that it will obtain a 10 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. PO 00000 Frm 00107 Fmt 4703 Sfmt 4703 56157 representation from the Trust that the NAV will be calculated daily and made available to all market participants at the same time.11 Following the initial 12-month period following commencement of trading, the Exchange will consider the suspension of trading in Shares or removing Shares from listing if, among other things: (1) The value of the Bullion 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; (2) the Exchange stops providing a hyperlink on its website to any such unaffiliated commodity value; or (3) the IIV is no longer made available on at least a 15second delayed basis.12 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 on the NYSE Marketplace until such time as the NAV is available to all market participants. With respect to trading halts, the Exchange may consider all relevant factors in exercising its discretion to halt or suspend trading in the Shares. These may include: (1) The extent to which conditions in the underlying Bullion markets 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.13 Further, NYSE Arca Equities Rule 8.201 sets forth certain restrictions on ETP Holders acting as registered Market Makers in the Shares to facilitate surveillance. Pursuant to NYSE Arca Equities Rule 8.201(g), 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 the applicable underlying Bullion, related futures or options on futures, or any other related derivatives. Commentary .04 of NYSE Arca Equities Rule 6.3 requires an ETP Holder acting as a registered Market Maker in Commodity-Based Trust Shares to establish, maintain and enforce written policies and procedures reasonably designed to prevent the misuse of any material nonpublic information with 11 See e-mail from Timothy J. Malinowski, Senior Director, NYSE Euronext, to Christopher W. Chow, Special Counsel, and Daniel T. Gien, Staff Attorney, Commission, dated August 31, 2010. 12 See NYSE Arca Equities Rules 8.201(e)(2)(iv), (v). 13 See NYSE Arca Equities Rule 7.12. E:\FR\FM\15SEN1.SGM 15SEN1 56158 Federal Register / Vol. 75, No. 178 / Wednesday, September 15, 2010 / Notices srobinson on DSKHWCL6B1PROD with NOTICES respect to such products, any components of the related products, any physical asset or commodity underlying the product, applicable currencies, underlying indexes, related futures or options on futures, and any related derivative instruments. In support of this proposal, the Exchange has made representations, including the following: (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 in all trading sessions and to deter and detect violations of Exchange rules and applicable federal securities laws.14 In addition, the Exchange may obtain trading information via the Intermarket Surveillance Group (‘‘ISG’’) from other exchanges who are members of the ISG.15 (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: (1) The procedures for purchases and redemptions of Shares in Baskets (including noting that Shares are not individually redeemable); (2) 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; (3) how information regarding the IIV is disseminated; (4) the requirement that ETP Holders deliver a prospectus to investors purchasing newly issued Shares prior to or concurrently with the confirmation of a transaction; (5) the possibility that trading spreads and the resulting premium or discount on the Shares may widen as a result of reduced liquidity of Bullion trading during the Core and Late Trading Sessions after the close of the major world Bullion markets; and (6) trading information. This approval order is based on the Exchange’s representations. For the foregoing reasons, the Commission finds that the proposed 14 Pursuant to NYSE Arca Equities Rule 8.201(g), the Exchange is able to obtain information regarding trading in the Bullion, Bullion futures contracts, options on Bullion futures, or any other Bullion derivative, by ETP Holders acting as registered Market Makers. 15 The Exchange notes that the New York Mercantile Exchange, of which the COMEX is a division, is an ISG member; however, the Tokyo Commodity Exchange, Inc. (‘‘TOCOM’’) is not an ISG member and the Exchange does not have in place a comprehensive surveillance sharing agreement with such market. VerDate Mar<15>2010 18:57 Sep 14, 2010 Jkt 220001 rule change is consistent with the Act and the rules and regulations thereunder applicable to a national securities exchange. IV. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,16 that the proposed rule change (SR–NYSEArca– 2010–71) be, and it hereby is, approved. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.17 Elizabeth M. Murphy, Secretary. [FR Doc. 2010–22948 Filed 9–14–10; 8:45 am] BILLING CODE 8010–01–P 107–56 (USA PATRIOT Act); and Executive Order 13356. The purpose of the collection is to validate the identity of individuals who enter Department facilities. The data will be entered into the Visitor Access Control System (VACS–D) database. Please see the Privacy Impact Assessment for VACS–D at https://www.state.gov/documents/ organization/100305.pdf for additional information. Please contact Christy Foushee at FousheeCT@state.gov or (703) 875–5751 with any questions. Dated: August 31, 2010. Adam E. Namm, Director, Acting, U.S. Department of State, Bureau of Overseas Buildings Operations. [FR Doc. 2010–22989 Filed 9–14–10; 8:45 am] DEPARTMENT OF STATE BILLING CODE 4710–24–P [Public Notice 7107] Industry Advisory Panel: Notice of Open Meeting The Industry Advisory Panel of the Bureau of Overseas Buildings Operations will meet on Thursday, October 14, 2010 from 9:30 a.m. until 3:30 p.m. Eastern Daylight Time. The meeting is open to the public and will be held in the Loy Henderson Conference Room of the U.S. Department of State, located at 2201 C Street, NW., (entrance on 23rd Street) Washington, DC. For logistical and security reasons, it is imperative that everyone enter and exit using only the 23rd Street entrance. The majority of the meeting will be devoted to an exchange of ideas between the Department’s senior management and the panel members on design, operations, and building maintenance. There will be reasonable time provided for members of the public to provide comment. Entry to the building is controlled; to obtain pre-clearance, members of the public planning to attend should provide, by October 1, their name, professional affiliation, date of birth, citizenship, and a valid governmentissued ID number (i.e., U.S. government ID, U.S. military ID, passport, or drivers license) via e-mail to: IAPR@state.gov. Requests for reasonable accommodation should be sent to the same e-mail address by October 1. Requests made after that date will be considered, but may not be able to be fulfilled. Personal data is requested pursuant to Public Law 99–399 (Omnibus Diplomatic Security and Antiterrorism Act of 1986), as amended; Public Law 16 15 17 17 PO 00000 U.S.C. 78s(b)(2). CFR 200.30–3(a)(12). Frm 00108 Fmt 4703 Sfmt 4703 DEPARTMENT OF TRANSPORTATION Federal Highway Administration [Docket No. FHWA–2010–0105] Agency Information Collection Activities: Notice of Request for Extension of Currently Approved Information Collection Federal Highway Administration (FHWA), DOT. ACTION: Notice of request for extension of currently approved information collection. AGENCY: The FHWA invites public comments about our intention to request the Office of Management and Budget’s (OMB’s) approval for renewal of an existing information collection that 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 November 15, 2010. ADDRESSES: You may submit comments identified by DOT Docket ID Number 2010–0105 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: Go to 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. Hand Delivery or Courier: U.S. Department of Transportation, West SUMMARY: E:\FR\FM\15SEN1.SGM 15SEN1

Agencies

[Federal Register Volume 75, Number 178 (Wednesday, September 15, 2010)]
[Notices]
[Pages 56156-56158]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-22948]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-62875; File No. SR-NYSEArca-2010-71]


Self-Regulatory Organizations; NYSE Arca, Inc.; Order Granting 
Approval of Proposed Rule Change To List and Trade Shares of the ETFS 
White Metals Basket Trust

September 9, 2010.

I. Introduction

    On July 22, 2010, NYSE Arca, Inc. (``Exchange'' or ``NYSE Arca'') 
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 White Metals Basket 
Trust (``Trust'') pursuant to NYSE Arca Equities Rule 8.201. The 
proposed rule change was published for comment in the Federal Register 
on August 6, 2010.\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. 62620 (July 30, 
2010), 75 FR 47655 (``Notice'').
---------------------------------------------------------------------------

II. Description of the Proposal

    The Exchange proposes to list and trade Shares pursuant to NYSE 
Arca Equities Rule 8.201, which governs the listing and trading of 
Commodity-Based Trust Shares. ETFS Services USA LLC is the sponsor of 
the Trust (``Sponsor''), The Bank of New York Mellon is the trustee of 
the Trust (``Trustee''), and JPMorgan Chase Bank, N.A. is the custodian 
of the Trust (``Custodian'').
    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 
physical silver, platinum, and palladium in the proportions held by the 
Trust, less the expenses of the Trust's operations.\4\
---------------------------------------------------------------------------

    \4\ See the registration statement for the Trust on Form S-1, 
filed with the Commission on May 27, 2010 (No. 333-167166) 
(``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

[[Page 56157]]

transactions in the Shares during all trading sessions.
    Additional information regarding the Trust, the Shares, the Trust's 
investment objectives, strategies, policies, and restrictions, fees and 
expenses, creation and redemption of Shares, the Bullion markets, 
availability of information, trading rules and halts, and surveillance 
procedures, among other things, can be found in the Notice and in 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 to list and trade the Shares of the Fund 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 prevent 
fraudulent and manipulative acts and practices, promote just and 
equitable principles of trade, foster cooperation and coordination with 
persons engaged in facilitating transactions in securities, 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).
---------------------------------------------------------------------------

    The Commission also 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's 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 disseminated through the 
facilities of the Consolidated Tape Association. In addition, the 
Trust's website will provide an intraday indicative value (``IIV'') per 
Share,\9\ 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 a.m. to 4 p.m. E.T.). The Trust's 
website also will provide the following information: (1) The net asset 
value (``NAV'') of the Trust, on a per Share basis, as calculated each 
business day by the Sponsor and the mid-point of the bid-ask price \10\ 
at the close of trading in relation to such NAV (``Bid/Ask Price''), 
and a calculation of the premium or discount of such price against such 
NAV; (2) data in chart format displaying the frequency distribution of 
discounts and premiums of the Bid/Ask Price against the NAV, within 
appropriate ranges, for each of the four previous calendar quarters; 
(3) the Creation Basket Deposit; (4) the Trust's prospectus, and the 
two most recent reports to stockholders; and (5) the last sale price of 
the Shares as traded in the US market. Further, the Exchange will make 
available over the Consolidated Tape trading volume, closing prices and 
NAV for the Shares from the previous day. There is a considerable 
amount of Bullion market information available on public websites and 
through professional and subscription services. For example, investors 
may obtain on a 24-hour basis Bullion pricing information based on the 
spot price for an ounce of Bullion from various financial information 
service providers, such as Reuters and Bloomberg. Reuters and Bloomberg 
provide at no charge on their websites delayed information regarding 
the spot price of Bullion and last sale prices of Bullion futures, as 
well as information about news and developments in the Bullion market. 
Reuters and Bloomberg also offer a professional service to subscribers 
for a fee that provides information on Bullion prices directly from 
market participants. Meanwhile, other public websites provide 
information on Bullion, ranging from those specializing in precious 
metals to sites maintained by major newspapers, such as The Wall Street 
Journal. In addition, the London AM Fix and London PM Fix are publicly 
available at no charge at https://www.thebulliondesk.com.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78k-1(a)(1)(C)(iii).
    \9\ The IIV is calculated by multiplying the indicative spot 
price of Bullion by the quantity of Bullion backing each Share as of 
the last calculation date.
    \10\ 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.
---------------------------------------------------------------------------

    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. The Exchange states that it will obtain a representation from 
the Trust that the NAV will be calculated daily and made available to 
all market participants at the same time.\11\ Following the initial 12-
month period following commencement of trading, the Exchange will 
consider the suspension of trading in Shares or removing Shares from 
listing if, among other things: (1) The value of the Bullion 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; (2) the Exchange stops providing a hyperlink on its website 
to any such unaffiliated commodity value; or (3) the IIV is no longer 
made available on at least a 15-second delayed basis.\12\ 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 on the NYSE Marketplace until such time as 
the NAV is available to all market participants. With respect to 
trading halts, the Exchange may consider all relevant factors in 
exercising its discretion to halt or suspend trading in the Shares. 
These may include: (1) The extent to which conditions in the underlying 
Bullion markets 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.\13\
---------------------------------------------------------------------------

    \11\ See e-mail from Timothy J. Malinowski, Senior Director, 
NYSE Euronext, to Christopher W. Chow, Special Counsel, and Daniel 
T. Gien, Staff Attorney, Commission, dated August 31, 2010.
    \12\ See NYSE Arca Equities Rules 8.201(e)(2)(iv), (v).
    \13\ See NYSE Arca Equities Rule 7.12.
---------------------------------------------------------------------------

    Further, NYSE Arca Equities Rule 8.201 sets forth certain 
restrictions on ETP Holders acting as registered Market Makers in the 
Shares to facilitate surveillance. Pursuant to NYSE Arca Equities Rule 
8.201(g), 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 the applicable underlying Bullion, related futures or 
options on futures, or any other related derivatives. Commentary .04 of 
NYSE Arca Equities Rule 6.3 requires an ETP Holder acting as a 
registered Market Maker in Commodity-Based Trust Shares to establish, 
maintain and enforce written policies and procedures reasonably 
designed to prevent the misuse of any material nonpublic information 
with

[[Page 56158]]

respect to such products, any components of the related products, any 
physical asset or commodity underlying the product, applicable 
currencies, underlying indexes, related futures or options on futures, 
and any related derivative instruments.
    In support of this proposal, the Exchange has made representations, 
including the following:
    (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 in all trading sessions and to 
deter and detect violations of Exchange rules and applicable federal 
securities laws.\14\ In addition, the Exchange may obtain trading 
information via the Intermarket Surveillance Group (``ISG'') from other 
exchanges who are members of the ISG.\15\
---------------------------------------------------------------------------

    \14\ Pursuant to NYSE Arca Equities Rule 8.201(g), the Exchange 
is able to obtain information regarding trading in the Bullion, 
Bullion futures contracts, options on Bullion futures, or any other 
Bullion derivative, by ETP Holders acting as registered Market 
Makers.
    \15\ The Exchange notes that the New York Mercantile Exchange, 
of which the COMEX is a division, is an ISG member; however, the 
Tokyo Commodity Exchange, Inc. (``TOCOM'') is not an ISG member and 
the Exchange does not have in place a comprehensive surveillance 
sharing agreement with such market.
---------------------------------------------------------------------------

    (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: (1) 
The procedures for purchases and redemptions of Shares in Baskets 
(including noting that Shares are not individually redeemable); (2) 
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; (3) how information regarding the 
IIV is disseminated; (4) the requirement that ETP Holders deliver a 
prospectus to investors purchasing newly issued Shares prior to or 
concurrently with the confirmation of a transaction; (5) the 
possibility that trading spreads and the resulting premium or discount 
on the Shares may widen as a result of reduced liquidity of Bullion 
trading during the Core and Late Trading Sessions after the close of 
the major world Bullion markets; and (6) 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 the Act and the rules and regulations 
thereunder applicable to a national securities exchange.

IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\16\ that the proposed rule change (SR-NYSEArca-2010-71) be, and it 
hereby is, approved.
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    \16\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\17\
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    \17\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. 2010-22948 Filed 9-14-10; 8:45 am]
BILLING CODE 8010-01-P
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