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56114 Federal Register / Vol. 72, No.

190 / Tuesday, October 2, 2007 / Notices

a national securities exchange.12 In national securities exchange.15 The Linked Securities’’) under section
particular, the Commission finds that Commission believes that accelerated 703.22 of the NYSE Listed Company
the proposed rule change is consistent approval of the proposed rule change Manual (‘‘Manual’’). The proposed rule
with the requirements of section 6(b)(5) should expedite the listing and trading change was published for comment in
of the Act,13 which requires, among of additional Commodity-Linked the Federal Register on September 6,
other things, that the Exchange’s rules Securities and Currency-Linked 2007 for a 15-day comment period.3 The
be designed to promote just and Securities, subject to the standards Commission received no comments on
equitable principles of trade, to foster discussed herein, to the benefit of the the proposal. This order approves the
cooperation and coordination with investing public. Therefore, the proposed rule change on an accelerated
persons engaged in regulating, clearing, Commission finds good cause, basis.
settling, processing information with consistent with section 19(b)(2) of the
II. Description of the Proposal
respect to, and facilitating transactions Act,16 to approve the proposed rule
in securities, to remove impediments to change on an accelerated basis. The Exchange proposed to amend
and perfect the mechanism of a free and section 703.22(B)(II)(1)(b) and section
V. Conclusion 703.22(B)(III)(1)(b) of the Manual to
open market and a national market
system and, in general, to protect It is therefore ordered, pursuant to permit the listing and trading of
investors and the public interest. The section 19(b)(2) of the Act,17 that the Commodity-Linked Securities and
Commission believes that the proposed rule change (SR–Amex–2007– Currency-Linked Securities,
Exchange’s surveillance procedures 102) be, and it hereby is, approved on respectively, where the underlying
would not be materially hampered as an accelerated basis. Commodity Reference Asset 4 or
long as the Exchange has access to For the Commission, by the Division of Currency Reference Asset,5 as the case
trading and pricing information of the Market Regulation, pursuant to delegated may be, may include components
underlying components that constitute authority.18 representing not more than 10% of the
at least 90% of the dollar weight of the Nancy M. Morris, dollar weight of such Commodity
Commodity Reference Asset or Currency Secretary.
Reference Asset or Currency Reference
Asset, for which the pricing information
Reference Asset, as the case may be. In [FR Doc. E7–19361 Filed 10–1–07; 8:45 am]
is derived from markets which do not
addition, the Commission believes that BILLING CODE 8011–01–P
meet the general requirements of the
so long as the pricing information for at
respective rule, as described below. In
least 90% of the dollar weight of the
SECURITIES AND EXCHANGE addition, the Exchange proposed that no
Commodity Reference Asset or Currency
COMMISSION single component of a Commodity
Reference Asset, as the case may be, is
Reference Asset or Currency Reference
based on the general pricing information [Release No. 34–56525; File No. SR–NYSE– Asset, as the case may be, subject to the
requirements, the proposed amendment 2007–76] foregoing proposed exception may
to the Exchange’s generic listing
exceed 7% of the dollar weight of such
standards should not constitute a Self-Regulatory Organizations; New Commodity Reference Asset or Currency
material risk to investors, while York Stock Exchange LLC; Order Reference Asset, as applicable.
potentially benefiting investors by Granting Accelerated Approval to Under section 703.22(B)(II)(1) of the
providing the Exchange flexibility to list Proposed Rule Change Relating to Manual, an issuance of Commodity-
a broader array of products. Requirements for the Listing and Linked Securities currently cannot be
The Commission finds good cause for Trading of Commodity-Linked listed unless either:
approving the proposed rule change Securities and Currency-Linked • The Commodity Reference Asset to
before the 30th day after the date of Securities which the security is linked shall have
publication of notice of filing thereof in September 25, 2007. been reviewed and approved for the
the Federal Register. The Commission trading of Commodity Trust Shares or
notes that it has previously approved I. Introduction options or other derivatives by the
similar approaches to the instant On August 22, 2007, the New York Commission under Section 19(b)(2) 6 of
proposal, where an underlying equity Stock Exchange LLC (‘‘NYSE’’ or the Act and rules thereunder and the
index may include foreign country ‘‘Exchange’’) filed with the Securities conditions set forth in the Commission’s
securities or foreign country securities and Exchange Commission approval order, including with respect
underlying American Depositary (‘‘Commission’’), pursuant to section to comprehensive surveillance sharing
Receipts having their primary trading 19(b)(1) of the Securities Exchange Act agreements (‘‘CSSAs’’), continue to be
market outside the United States on of 1934 (‘‘Act’’) 1 and Rule 19b–4 satisfied; or
foreign trading markets that are not thereunder,2 a proposed rule change to • The pricing information for each
members or affiliates of ISG or parties to amend the generic listing standards for component of a Commodity Reference
CSSAs with the Exchange, as long as commodity-linked securities Asset is derived from a market which is
such securities do not, in the aggregate, (‘‘Commodity-Linked Securities’’) and
3 See Securities Exchange Act Release No. 56332
represent more than 20% of the dollar currency-linked securities (‘‘Currency-
(August 29, 2007), 72 FR 51285 (‘‘Notice’’).
weight of such underlying index.14 The 4 Commodity Reference Asset is defined as one or
15 See Securities Exchange Act Release No. 56525
Commission further notes that it has more physical commodities or commodity futures,
(September 25, 2007) (SR–NYSE–2007–76)
approved a substantively identical (approving the same amendments to the New York
options or other commodity derivatives or
proposed rule change for another Commodity Trust Shares (as defined in NYSE Rule
Stock Exchange LLC’s generic listing standards for 1300B) or a basket or index of any of the foregoing.
Commodity-Linked and Currency-Linked See Section 703.22 of the Manual.
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12 In approving this proposed rule change, the Securities). 5 Currency Reference Asset is defined as one or
16 15 U.S.C. 78s(b)(2).
Commission notes that it has considered the more currencies, options or currency futures or
17 15 U.S.C. 78s(b)(2).
proposed rule’s impact on efficiency, competition, other currency derivatives or Currency Trust Shares
and capital formation. See 15 U.S.C. 78c(f). 18 17 CFR 200.30–3(a)(12).
(as defined in NYSE Rule 1300A) or a basket or
13 15 U.S.C. 78f(b)(5). 1 15 U.S.C. 78s(b)(1). index of any of the foregoing. See id.
14 See supra note 8. 2 17 CFR 240.19b–4. 6 15 U.S.C. 78s(b)(2).

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Federal Register / Vol. 72, No. 190 / Tuesday, October 2, 2007 / Notices 56115

an Intermarket Surveillance Group Currency-Linked Securities and index may include foreign country
(‘‘ISG’’) member or affiliate or with benefiting the investing public. securities or foreign country securities
which the Exchange has a CSSA. underlying American Depositary
III. Commission’s Findings and Order
Notwithstanding the previous sentence, Receipts having their primary trading
Granting Accelerated Approval of the
pricing information for gold and silver Proposed Rule Change market outside the United States on
may be derived from the London foreign trading markets that are not
Bullion Market Association. After careful consideration, the
members or affiliates of ISG or parties to
Commission finds that the proposed
Similarly, under section CSSAs with the Exchange, as long as
rule change is consistent with the
703.22(B)(III)(1) of the Manual, an requirements of the Act and the rules such securities do not, in the aggregate,
issuance of Currency-Linked Securities and regulations thereunder applicable to represent more than 20% of the dollar
currently cannot be listed unless either: a national securities exchange.7 In weight of such underlying index.10 The
• The Currency Reference Asset to particular, the Commission finds that Commission believes that accelerated
which the security is linked shall have the proposed rule change is consistent approval of the proposed rule change
been reviewed and approved for the with the requirements of section 6(b)(5) should expedite the listing and trading
trading of Currency Trust Shares or of the Act,8 which requires, among other of additional Commodity-Linked
options or other derivatives by the things, that the Exchange’s rules be Securities and Currency-Linked
Commission under Section 19(b)(2) of designed to promote just and equitable Securities, subject to the standards
the Act and rules thereunder and the principles of trade, to foster cooperation discussed herein, to the benefit of the
conditions set forth in the Commission’s and coordination with persons engaged investing public. Therefore, the
approval order, including with respect in regulating, clearing, settling, Commission finds good cause,
to CSSAs, continue to be satisfied; or processing information with respect to, consistent with section 19(b)(2) of the
• The pricing information for each and facilitating transactions in Act,11 to approve the proposed rule
component of a Currency Reference securities, to remove impediments to change on an accelerated basis.
Asset must be (1) The generally and perfect the mechanism of a free and
accepted spot price for the currency open market and a national market IV. Conclusion
exchange rate in question or (2) derived system and, in general, to protect
investors and the public interest. The It is therefore ordered, pursuant to
from a market which is (a) An ISG section 19(b)(2) of the Act,12 that the
member or affiliate or with which the Commission believes that the
Exchange’s surveillance procedures proposed rule change (SR–NYSE–2007–
Exchange has a CSSA and (b) the 76) be, and it hereby is, approved on an
pricing source for components of a would not be materially hampered as
long as the Exchange has access to accelerated basis.
Currency Reference Asset that has
previously been approved by the trading and pricing information of the For the Commission, by the Division of
Commission. underlying components that constitute Market Regulation, pursuant to delegated
at least 90% of the dollar weight of the authority.13
The Exchange proposed to amend the
Commodity Reference Asset or Currency Nancy M. Morris,
requirements as to the source of pricing
Reference Asset, as the case may be. In
information for components of Secretary.
addition, the Commission believes that
Commodity-Linked Securities and [FR Doc. E7–19362 Filed 10–1–07; 8:45 am]
so long as the pricing information for at
Currency-Linked Securities so as to BILLING CODE 8011–01–P
least 90% of the dollar weight of the
permit the listing of such securities
Commodity Reference Asset or Currency
where a maximum of 10% of the dollar
Reference Asset, as the case may be, is
weight of the Commodity Reference
based on the general pricing information
Asset or Currency Reference Asset, as
requirements, the proposed amendment
the case may be, is made up of
to the Exchange’s generic listing
components that do not meet the
standards should not constitute a
respective general pricing information
material risk to investors, while
requirements. In addition, the Exchange
potentially benefiting investors by
proposed that no single component
providing the Exchange flexibility to list
subject to the proposed exception may
a broader array of products.
exceed 7% of the dollar weight of the underlying index or indexes of equity securities.
The Commission finds good cause for
Commodity Reference Asset or See Section 703.22 of the Manual.
approving the proposed rule change
Commodity Reference Asset, as the case 10 See Section 703.22(B)(I)(2)(vii) of the Manual.
before the 30th day after the date of
may be. See also Securities Exchange Act Release Nos.
publication of notice of filing thereof in 55687 (May 1, 2007), 72 FR 25824 (May 7, 2007)
The Exchange stated that many the Federal Register. The Commission (SR–NYSE–2007–27) (approving the generic listing
commodity and currency markets are notes that it has previously approved and trading standards for Index-Linked Securities,
not members or affiliates of ISG, and the similar approaches to the instant including Equity Index-Linked Securities); and
Exchange frequently experiences proposal, including another provision in 54013 (June 16, 2006), 71 FR 36372 (June 26, 2006)
difficulty entering into CSSAs with such section 703.22 of the Manual permitting (SR–NYSE–2006–17) (approving the listing and
markets. The Exchange noted that the the listing of Equity Index-Linked trading of shares of the iShares GSCI Commodity
proposed amendment would provide Indexed Trust and providing that, if a new
Securities,9 where the underlying equity component is added to the underlying index that
the Exchange with greater flexibility to
constitutes more than 10% of the overall weight of
list securities under section 703.22 of 7 In approving this proposed rule change, the
the index and with whose principal trading market
the Manual that are linked to a broader Commission notes that it has considered the
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the Exchange does not have a comprehensive


range of underlying assets, such as proposed rule’s impact on efficiency, competition,
surveillance sharing agreement, the Exchange
and capital formation. See 15 U.S.C. 78c(f).
commodities and currencies, thereby 8 15 U.S.C. 78f(b)(5).
would seek to delist such shares).
providing issuers with a faster and less 9 Equity Index-Linked Securities are defined as
11 15 U.S.C. 78s(b)(2).

cumbersome means of listing new securities that provide for the payment at maturity
12 Id.

Commodity-Linked Securities and of a cash amount based on the performance of an 13 17 CFR 200.30–3(a)(12).

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