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42212 Federal Register / Vol. 72, No.

147 / Wednesday, August 1, 2007 / Notices

section 19(b)(2) of the Exchange Act,8 to Trust; (7) CurrencySharesSM Swedish Exchange currently trades the Shares
approve the proposed rule change on an Krona Trust; and (8) CurrencySharesSM pursuant to UTP.6 The Shares of the
accelerated basis. Swiss Franc Trust (individually, a Trusts will transfer their listing from
‘‘Trust,’’ and collectively, the NYSE to the Exchange.7
V. Conclusion Each Trust holds the applicable
‘‘Trusts’’),3 pursuant to NYSE Arca
It is therefore ordered, pursuant to Equities Rule 8.202. The text of the foreign currency 8 and is expected from
section 19(b)(2) of the Act,9 that the proposed rule change is available at the time to time to issue Baskets 9 in
proposed rule change (SR–NYSEArca– Exchange, the Commission’s Public exchange for deposits of the foreign
2007–66), as modified by Amendment Reference Room, and http:// currency and to distribute the foreign
No. 1, be, and it hereby is, approved on www.nyse.com. currency in connection with
an accelerated basis. redemptions of Baskets. The Shares,
II. Self-Regulatory Organization’s which are issued by their corresponding
For the Commission, by the Division of Statement of the Purpose of, and
Market Regulation, pursuant to delegated Trust, represent units of fractional
authority.10 Statutory Basis for, the Proposed Rule undivided beneficial interest in, and
Change ownership of, such Trust. The
Florence E. Harmon,
Deputy Secretary. In its filing with the Commission, the investment objective of the Trusts is for
[FR Doc. E7–14838 Filed 7–31–07; 8:45 am] Exchange included statements the Shares to reflect the price (U.S.
concerning the purpose of and basis for dollars) of the applicable foreign
BILLING CODE 8010–01–P
the proposed rule change and discussed currency owned by the specific Trust,
any comments it received on the plus accrued interest, less the expenses
SECURITIES AND EXCHANGE proposed rule change. The text of these and liabilities of such Trust. The Shares
COMMISSION statements may be examined at the are intended to provide institutional
places specified in Item III below. The and retail investors with a simple, cost-
[Release No. 34–56131; File No. SR– Exchange has prepared summaries, set effective means of hedging their
NYSEArca–2007–57] exposure to a particular foreign
forth in sections A, B, and C below, of
the most significant aspects of such currency and otherwise implement
Self-Regulatory Organizations; NYSE
statements. investment strategies that involve
Arca, Inc.; Notice of Filing and Order
foreign currencies (e.g., diversify
Granting Accelerated Approval of A. Self-Regulatory Organization’s generally against the risk that the U.S.
Proposed Rule Change To List and Statement of the Purpose of, and dollar would depreciate).
Trade Currency Trust Shares Statutory Basis for, the Proposed Rule Rydex Specialized Products LLC is
July 25, 2007.
Change the sponsor of the Trusts (‘‘Sponsor’’);
Pursuant to section 19(b)(1) of the 1. Purpose The Bank of New York is the trustee of
Securities Exchange Act of 1934 the Trusts (‘‘Trustee’’); JPMorgan Chase
The Exchange proposes to list and Bank, N.A., London Branch, is the
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
trade the Shares pursuant to NYSE Arca depository for the Trusts (‘‘Depository’’);
notice is hereby given that on June 21,
Equities Rule 8.202, which permits the and Rydex Distributors, Inc. is the
2007, NYSE Arca, Inc. (the ‘‘Exchange’’),
trading of Currency Trust Shares 4 either distributor for the Trusts
through its wholly-owned subsidiary,
by listing or pursuant to unlisted trading (‘‘Distributor’’).10 A detailed discussion
NYSE Arca Equities, Inc. (‘‘NYSE Arca
privileges (‘‘UTP’’). The Shares are
Equities’’), filed with the Securities and
currently listed on the New York Stock CurrencySharesSM Swiss Franc Trust); and 52843
Exchange Commission (‘‘Commission’’)
Exchange LLC (‘‘NYSE’’),5 and the (November 28, 2005), 70 FR 72486 (December 5,
the proposed rule change (‘‘Exchange 2005) (SR–NYSE 2005–65) (approving the listing
Notice’’) as described in Items I and II 3 The Exchange represents that the Trusts are and trading of shares of the CurrencySharesSM Euro
below, which Items have been formed under the laws of the State of New York and Trust) (collectively, the ‘‘NYSE Approval Orders’’).
6 See supra note 4; Securities Exchange Act
substantially prepared by the Exchange. are not registered under the Investment Company
Act of 1940. Release Nos. 55320 (February 21, 2007), 72 FR 8828
This order provides notice of the (February 27, 2007) (SR–NYSEArca–2007–15)
4 As defined in NYSE Arca Equities Rule 8.202(c),
proposed rule change and approves the (approving the trading of shares of the
‘‘Currency Trust Shares’’ are securities that: (1) Are
proposed rule change on an accelerated issued by a trust that holds a specified non-U.S. CurrencySharesSM Japanese Yen Trust pursuant to
basis. currency deposited with the trust; (2) when UTP); and 54043 (June 26, 2006), 71 FR 37967, (July
aggregated in some specified minimum number, 3, 2006) (SR–NYSEArca–2006–26) (approving the
I. Self-Regulatory Organization’s may be surrendered to such trust by the beneficial trading of shares of the CurrencySharesSM
Statement of the Terms of Substance of owner to receive the specified non-U.S. currency; Australian Dollar Trust, CurrencySharesSM British
and (3) pay to the beneficial owners interest and Pound Sterling Trust, CurrencySharesSM Canadian
the Proposed Rule Change Dollar Trust, CurrencySharesSM Mexican Peso
other distributions on the deposited non-U.S.
The Exchange proposes to list and currency, if any, declared and paid by the Trust. Trust, CurrencySharesSM Swedish Krona Trust, and
See Securities Exchange Act Release No. 53253 CurrencySharesSM Swiss Franc Trust pursuant to
trade shares (‘‘Shares’’) of the following UTP).
(February 8, 2006), 71 FR 8029 (February 15, 2006)
trusts: (1) CurrencySharesSM Australian (SR–PCX–2005–123) (approving the adoption of
7 E-mail from Timothy J. Malinowski, Director,

Dollar Trust; (2) CurrencySharesSM generic listing and trading standards for Currency NYSE Group, Inc., to Edward Cho, Special Counsel,
British Pound Sterling Trust; (3) Trust Shares and the trading of shares of the Division of Market Regulation, Commission, dated
CurrencySharesSM Euro Trust pursuant to UTP). July 11, 2007 (confirming the listing status of the
CurrencySharesSM Canadian Dollar Shares).
5 See Securities Exchange Act Release Nos. 55268
Trust; (4) CurrencySharesSM Euro Trust 8 The Trusts do not hold any derivative products.
(February 9, 2007), 72 FR 7793 (February 20, 2007)
(formerly, Euro Currency Trust); (5) (SR–NYSE–2007–03) (approving the listing and 9 A ‘‘Basket’’ is defined as an aggregation of

CurrencySharesSM Japanese Yen Trust; trading of shares of the CurrencySharesSM Japanese 50,000 Shares.
(6) CurrencySharesSM Mexican Peso Yen Trust); 54020 (June 20, 2006), 71 FR 36579 10 The Exchange represents that the Sponsor,

(June 27, 2006) (SR–NYSE–2006–35) (approving the Trustee, Distributor, and Depository are not
jlentini on PROD1PC65 with NOTICES

8 15 listing and trading of shares of the affiliated with the Exchange or one another, with
U.S.C. 78s(b)(2).
9 15
CurrencySharesSM Australian Dollar Trust, the exception that the Sponsor and Distributor are
U.S.C. 78s(b)(2). CurrencySharesSM British Pound Sterling Trust, affiliated. The Exchange further represents that no
10 17 CFR 200.30–3(a)(12).
CurrencySharesSM Canadian Dollar Trust, compensation is paid by the Sponsor to the
1 15 U.S.C. 78s(b)(1).
CurrencySharesSM Mexican Peso Trust, Distributor in connection with services performed
2 17 CFR 240.19b–4. CurrencySharesSM Swedish Krona Trust, and by the Distributor for the Trusts.

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Federal Register / Vol. 72, No. 147 / Wednesday, August 1, 2007 / Notices 42213

of the foreign exchange industry and addition, the Trusts’ Web site (http:// value (‘‘IIV’’) per Share, calculated by
markets, foreign currency liquidity and www.currencyshares.com) provides multiplying the indicative spot price of
regulation, role and responsibilities of ongoing pricing information for the the applicable foreign currency by the
the Sponsor, Trustee, Distributor, and applicable foreign currency spot prices quantity of foreign currency backing
Depository, fees and expenses of the and the Shares.13 The Exchange states each Share, updated at least every 15
Trusts, distributions, voting and that complete, real-time data for foreign seconds; 18 (3) a delayed indicative
approvals, risk factors, clearance and currency futures and options prices value (subject to a 20 minute delay),
settlement, and the procedures for traded on the Chicago Mercantile which is used for calculating premium/
creations and redemptions, and other Exchange (‘‘CME’’) and the Philadelphia discount information; (4) premium/
details pertaining to the Shares, can be Stock Exchange, Inc. (‘‘Phlx’’) are also discount information, calculated on a 20
found in the Exchange Notice, the NYSE available by subscription from minute delayed basis; (5) accrued
Approval Orders, and the Trust information service providers, and that interest per Share; (6) the daily Federal
Prospectus (as defined below).11 CME and Phlx also provide delayed Reserve Bank of New York Noon Buying
Quotations and last sale price futures and options information on Rate; 19 (7) the Basket Amount 20 for
information for the Shares are current and past trading sessions and each applicable foreign currency; and
disseminated over the Consolidated market news free of charge on their (8) the last sale price of the Shares as
Tape,12 as is the case for all equity respective Web sites. traded in the U.S. markets, subject to a
securities traded on the Exchange There are a variety of other public 20-minute delay.21 On the Trusts’ Web
(including shares of exchange-traded Web sites available at no charge that site, the foreign currency spot price is
funds). In addition, there is a provide information on the foreign available and disseminated at least
considerable amount of foreign currency currencies underlying the Shares. Such every 15 seconds, and the IIV per Share
price and market information available service providers provide spot price or will be calculated and disseminated at
on public Web sites and through currency conversion information about least every 15 seconds during NYSE
professional and subscription services. the foreign currencies. Many of these Arca Marketplace’s Opening, Core
As is the case with equity securities and sites offer price quotations drawn from Trading, and Late Trading Sessions.22
exchange-traded funds, in most other published sources, but because the The Exchange states that it will provide
instances, real-time information is only information is supplied free-of-charge, it on its own Web site (http://
available for a fee, and information is generally subject to time delays. In www.nyse.com) a link to the Trusts’
available free-of-charge is subject to addition, major market data vendors Web site.
delay (typically, 15 to 20 minutes). regularly report current currency The Exchange states that the Shares
Currently, the Consolidated Tape does exchange pricing for a fee for the are subject to the criteria for initial and
not provide for dissemination of the Japanese yen and other currencies.14 continued listing of Currency Trust
spot price of a foreign currency over the The Trustee calculates, and the Shares under NYSE Arca Equities Rule
Consolidated Tape. However, investors Sponsor publishes, each Trust’s net 8.202. A minimum of 100,000 Shares
may obtain on a 24-hour basis foreign asset value, or ‘‘NAV,’’ and NAV per would be required to be outstanding
currency pricing information based on Share each business day. The Sponsor when the Shares begin to trade. This
the foreign currency spot price of each publishes the NAV and NAV per Share minimum number of Shares required to
applicable foreign currency from for each Trust on each day that the be outstanding is comparable to
various financial information service Exchange is open for regular trading on requirements that have been applied to
providers. Current spot prices are also the Trusts’ Web site.15 In addition, the
generally available with bid/ask spreads Trusts’ Web site provides the following 18 The IIV of the Shares is analogous to the

from foreign exchange dealers. In information: (1) The spot price for each intraday optimized portfolio value (sometimes
applicable foreign currency,16 including referred to as ‘‘IOPV’’) and indicative portfolio
value associated with the trading of exchange-
11 See supra note 5; see also Prospectus the bid and offer and the midpoint traded funds. The Exchange further represents that
Supplement No. 4, dated March 19, 2007, and between the bid and offer for the foreign the IIV is equivalent to the Indicative Trust Value,
Prospectus Supplement No. 2, dated January 29,
2007, for each of the CurrencySharesSM Australian
currency spot price, updated every 5 to as referenced in NYSE Arca Equities Rule
10 seconds; 17 (2) an intraday indicative 8.202(e)(2)(v), with respect to Currency Trust
Dollar Trust, CurrencySharesSM British Pound
Sterling Trust, CurrencySharesSM Canadian Dollar Shares. E-mail from Timothy J. Malinowski,
Trust, CurrencySharesSM Mexican Peso Trust, 13 The Sponsor has represented that the spot price
Director, NYSE Group, Inc., to Edward Cho, Special
CurrencySharesSM Swedish Krona Trust, and Counsel, Division of Market Regulation,
will be available on the Trust’s Web site without Commission, dated July 25, 2007 (confirming that
CurrencySharesSM Swiss Franc Trust (Registration interruption 24 hours per day, seven days per week.
Nos. 333–132362, 333–132361, 333–132363, 333– the IIV is equivalent to the Indicative Trust Value).
14 The Exchange notes that there may be
19 The Federal Reserve Bank of New York Noon
132367, 333–132366, and 333–132364, incremental differences in the foreign currency spot
respectively); Prospectus Supplement No. 11, dated Buying Rate is used for the purpose of determining
price among the various information service
March 19, 2007, and Prospectus Supplement No. 7, the NAV of each Trust.
sources. While the Exchange believes the 20 A ‘‘Basket Amount’’ is the total deposit amount
dated January 29, 2007, for the CurrencySharesSM differences in the foreign currency spot price may
Euro Trust (Registration No. 333–125581); and be relevant to those entities engaging in arbitrage or of the applicable foreign currency required to
Prospectus Supplement No. 3, dated April 3, 2007, in the active daily trading of the applicable foreign purchase a Basket of Shares.
for the CurrencySharesSM Japanese Yen Trust currency or derivatives thereon, the Exchange 21 The last sale price of the Shares in the

(Registration Nos. 333–138881 and 333–141821) believes such differences are likely of less concern secondary market is available on a real-time basis
(collectively, the ‘‘Trust Prospectus’’). E-mail from to individual investors intending to hold the Shares for a fee from regular data vendors.
Timothy J. Malinowski, Director, NYSE Group, Inc., as part of a long-term investment strategy. 22 Pursuant to NYSE Arca Equities Rule 7.34(a),
to Edward Cho, Special Counsel, Division of Market 15 The Sponsor for the Trusts has represented to the NYSE Arca Marketplace trading hours for
Regulation, Commission, dated July 18, 2007 the Exchange that the NAV and the Basket Amount exchange-traded funds are as follows: (1) Opening
(confirming that additional information on the (as defined herein) for the Trust will be available Session, 4 a.m. to 9:30 a.m. Eastern Time (‘‘ET’’);
foreign currency markets, the Trust, and the Shares to all market participants at the same time. (2) Core Trading Session, 9:30 a.m. to 4:15 p.m. ET;
can be found in the Exchange Notice, NYSE 16 The Trusts’ Web site’s foreign currency spot and (3) Late Trading Session, 4:15 p.m. to 8 p.m.
Approval Orders, and the Trust Prospectus, as prices will be provided by FactSet Research ET. E-mail from Timothy J. Malinowski, Director,
jlentini on PROD1PC65 with NOTICES

supplemented). Systems (http://www.factset.com). FactSet Research NYSE Group, Inc., to Edward Cho, Special Counsel,
12 E-mail from Timothy J. Malinowski, Director, Systems is not affiliated with the Trusts, Trustee, Division of Market Regulation, Commission, dated
NYSE Group, Inc., to Edward Cho, Special Counsel, Sponsor, Depository, Distributor, or the Exchange. July 11, 2007 (confirming that the IIV per Share will
Division of Market Regulation, Commission, dated 17 The Sponsor calculates the midpoint price. The be calculated and disseminated at least every 15
July 18, 2007 (confirming the information being midpoint is used for the purpose of calculating the seconds during the Exchange’s three trading
disseminated over the Consolidated Tape). premium or discount of the Shares. sessions).

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42214 Federal Register / Vol. 72, No. 147 / Wednesday, August 1, 2007 / Notices

previously listed series of exchange- Exchange’s current trading surveillance relatively low, it could adversely affect
traded funds. The Exchange believes focuses on detecting when securities the value of the Shares, and that there
that the proposed minimum number of trade outside their normal patterns. is no regulated source of last-sale
Shares outstanding at the start of trading When such situations are detected, information regarding foreign currency.
is sufficient to provide market surveillance analysis follows and The Bulletin will also discuss any
liquidity.23 investigations are opened, where exemptive, no-action, and/or
The Exchange deems the Shares to be appropriate, to review the behavior of interpretive relief granted by the
equity securities, thus rendering trading all relevant parties for all relevant Commission from the requirements of
in the Shares subject to the Exchange’s trading violations. The Exchange may the Act and any rules thereunder.28
existing rules governing the trading of also obtain information via the
equity securities. The trading hours for 2. Statutory Basis
Intermarket Surveillance Group (‘‘ISG’’)
the Shares on the Exchange are the same from other exchanges that are members The proposal is consistent with
as those set forth in NYSE Arca Equities or affiliate members of ISG. Specifically, section 6(b) of the Act,29 in general, and
Rule 7.34 (Opening, Core Trading, and the Exchange can obtain key trading section 6(b)(5) of the Act,30 in
Late Trading Sessions, 4 a.m. ET to 8 information from Phlx in connection particular, in that it is designed to
p.m. ET).24 with foreign currency options trading prevent fraudulent and manipulative
With respect to trading halts, the and from CME in connection with acts and practices, to promote just and
Exchange may consider all relevant foreign currency futures trading.26 equitable principles of trade, to foster
factors in exercising its discretion to Furthermore, the Exchange states that cooperation and coordination with
halt or suspend trading in the Shares. the Shares are subject to NYSE Arca persons engaged in facilitating
Trading may be halted because of Equities Rule 8.202(g)–(i), which set transactions in securities, and to remove
market conditions or for reasons that, in forth certain restrictions on ETP impediments to and perfect the
the view of the Exchange, make trading Holders27 acting as registered market mechanism of a free and open market
in the Shares inadvisable. These reasons makers in the Shares to facilitate and a national market system.
may include (1) The extent to which surveillance. The Exchange also has a
trading is not occurring in the B. Self-Regulatory Organization’s
general policy prohibiting the Statement on Burden on Competition
applicable underlying foreign currency, distribution of material, non-public
or (2) whether other unusual conditions information by its employees. The Exchange does not believe that
or circumstances detrimental to the Prior to listing and trading the Shares, the proposed rule change will result in
maintenance of a fair and orderly the Exchange will inform its ETP any burden on competition that is not
market are present. In addition, trading Holders in an Information Bulletin necessary or appropriate in furtherance
in the Shares could be halted pursuant (‘‘Bulletin’’) of the special of the purpose of the Act.
to the Exchange’s ‘‘circuit breaker’’
characteristics and risks associated with
rule.25 The Exchange further notes that, 28 See letter from Racquel L. Russell, Branch
trading the Shares. Specifically, the
if the IIV or the value of an underlying Chief, Office of Trading Practices and Processing,
Bulletin will discuss the following: (a) Division of Market Regulation, Commission, to
foreign currency is not being calculated
The procedures for purchases and George T. Simon, Esq., Foley & Lardner LLP, dated
or widely disseminated as required, the June 21, 2006 (‘‘June 21, 2006 Letter’’) (granting
redemptions of Shares in Baskets (and
Exchange may halt trading during the relief from certain rules under the Act for certain
that Shares are not individually
day in which the interruption to the of the Trusts) and letter from James A Brigagliano,
redeemable); (b) NYSE Arca Equities Assistant Director, Division of Market Regulation,
calculation or wide dissemination of the
Rule 9.2(a), which imposes a duty of Commission, to Michael Schmidtberger, Esq.,
IIV or the value of the underlying Sidley Austin Brown & Wood LLP, dated January
due diligence on its ETP Holders to
foreign currency occurs. If the 19, 2006 (‘‘January 19, 2006 Letter’’) (granting relief
interruption to the calculation or wide learn the essential facts relating to every from certain rules under the Act for the DB
dissemination of the IIV or the value of customer prior to trading the Shares; (c) Commodity Index Tracking Fund). The Sponsor is
the underlying foreign currency persists how information regarding the IIV and relying on: (a) The June 21, 2006 Letter regarding
applicable foreign currency values is Rule 10a–1 under the Act (17 CFR 240.10a–1), Rule
past the trading day in which it 200(g) of Regulation SHO (17 CFR 242.200(g)), and
occurred, the Exchange would halt disseminated; (d) the requirement that Rules 101 and 102 of Regulation M under the Act
trading no later than the beginning of ETP Holders deliver a prospectus to (17 CFR 242.101 and 102); and (b) the January 19,
the trading day following the investors purchasing newly issued 2006 Letter regarding Section 11(d)(1) of the Act (15
Shares prior to or concurrently with the U.S.C. 78k(d)(1)) and Rule 11d1–2 thereunder (17
interruption. CFR 240.11d1–2). In addition, the Exchange
The Exchange intends to utilize its confirmation of a transaction; and (e) represents that the Trusts will not be subject to the
existing surveillance procedures other trading information. Exchange’s corporate governance requirements and
applicable to derivative products to In addition, the Bulletin will the Sponsor has received guidance from the
reference that the Trust is subject to Commission regarding the application of the
monitor trading in the Shares. The certification rules for periodic reporting under the
Exchange represents that these various fees and expenses, the number Act. See Securities Exchange Act Release No. 48745
procedures are adequate to properly of units of the applicable foreign (November 4, 2003), 68 FR 64154 (November 12,
monitor Exchange trading of the Shares currency required to create a Basket or 2003) (SR–NYSE–2002–33, et al.) (noting that the
to be delivered upon redemption of a corporate governance standards will not apply to,
in all trading sessions and to deter and among others, passive business organizations in the
detect violations of Exchange rules. The Basket may gradually decrease over time form of trusts). See also Securities Exchange Act
in the event that a Trust is required to Release No. 47654 (April 29, 2003), 68 FR 18788
23 See NYSE Arca Equities Rule 8.202(e) (setting withdraw or sell units of foreign (April 16, 2003) (File No. S7–02–03) (noting that
forth the initial and continued listing standards currency to pay the Trust’s expenses, SROs may exclude from Rule 10A–3’s requirements
applicable to the Shares). See also Exchange Notice issuers that are organized as trusts or other
and that if done at a time when the price unincorporated associations that do not have a
(providing further discussion regarding the initial
and continued listing standards applicable to the of the applicable foreign currency is board of directors or persons acting in a similar
jlentini on PROD1PC65 with NOTICES

Shares). capacity and whose activities are limited to


24 See supra note 22. See also Exchange Notice 26 The Exchange states that Phlx is a member of passively owning or holding securities, rights,
(providing further discussion regarding the trading ISG and CME is an affiliate member of ISG. collateral, or other assets on behalf of or for the
rules applicable to the Shares). 27 An ETP Holder is a registered broker or dealer benefit of the holders of the listed securities).
29 15 U.S.C. 78f(b).
25 See NYSE Arca Equities Rule 7.12 (Trading that has been issued an Equity Trading Permit (ETP)
Halts Due to Extraordinary Market Volatility). by NYSE Arca Equities. 30 15 U.S.C. 78f(b)(5).

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Federal Register / Vol. 72, No. 147 / Wednesday, August 1, 2007 / Notices 42215

C. Self-Regulatory Organization’s Number SR–NYSEArca–2007–57 and addition, the Trusts’ Web site provides
Statement on Comments on the should be submitted on or before ongoing pricing information for the
Proposed Rule Change Received From August 22, 2007. applicable foreign currency spot prices
Members, Participants or Others and the Shares. The Exchange
IV. Commission’s Findings and Order
The Exchange has neither solicited represents that complete, real-time data
Granting Accelerated Approval of the
nor received written comments on the for foreign currency futures and options
Proposed Rule Change
proposed rule change. prices traded on CME and Phlx are also
After careful review, the Commission available by subscription from
III. Solicitation of Comments finds that the proposed rule change is information service providers. CME and
consistent with the requirements of the Phlx also provide delayed futures and
Interested persons are invited to
Act and the rules and regulations options information on current and past
submit written data, views, and
thereunder applicable to a national trading sessions and market news free of
arguments concerning the foregoing, securities exchange.31 In particular, the
including whether the proposed rule charge on their respective Web sites.
Commission finds that the proposed There are a variety of other public Web
change is consistent with the Act. rule change is consistent with section
Comments may be submitted by any of sites available at no charge that provide
6(b)(5) of the Act,32 which requires that information on the foreign currencies
the following methods: an exchange have rules designed, among underlying the Shares, including spot
Electronic Comments other things, to promote just and price or currency conversion
equitable principles of trade, to remove information about the foreign
• Use the Commission’s Internet
impediments to and perfect the currencies. In addition, the Trusts’ Web
comment form (http://www.sec.gov/
mechanism of a free and open market site provides the following information:
rules/sro.shtml); or
and a national market system, and, in (1) The spot price for each applicable
• Send an e-mail to rule-
general, to protect investors and the foreign currency, including the bid and
comments@sec.gov. Please include File
public interest. The Commission notes offer and the midpoint between the bid
Number SR–NYSEArca–2007–57 on the
that it previously approved the original and offer for the foreign currency spot
subject line.
listing and trading of the Shares on price, updated every 5 to 10 seconds; (2)
Paper Comments NYSE, and the instant proposal is a delayed IIV (subject to a 20 minute
• Send paper comments in triplicate substantively identical to the previous delay), which is used for calculating
NYSE proposals.33 premium/discount information; (3)
to Nancy M. Morris, Secretary,
The Commission further believes that premium/discount information,
Securities and Exchange Commission,
the proposal is consistent with section calculated on a 20 minute delayed basis;
100 F Street, NE., Washington, DC 11A(a)(1)(C)(iii) of the Act,34 which sets
20549–1090. (4) accrued interest per Share; (5) the
forth Congress’ finding that it is in the daily Federal Reserve Bank of New York
All submissions should refer to File public interest and appropriate for the Noon Buying Rate; (6) the Basket
Number SR–NYSEArca–2007–57. This protection of investors and the Amount for each applicable foreign
file number should be included on the maintenance of fair and orderly markets currency; and (7) the last sale price of
subject line if e-mail is used. To help the to assure the availability to brokers, the Shares as traded in the U.S. markets,
Commission process and review your dealers, and investors of information subject to a 20-minute delay. The
comments more efficiently, please use with respect to quotations for and Exchange states that it will provide on
only one method. The Commission will transactions in securities. Quotations its own Web site a link to the Trusts’
post all comments on the Commission’s and last sale price information for the Web site.
Internet Web site (http://www.sec.gov/ Shares are disseminated over the Furthermore, the Commission
rules/sro.shtml). Copies of the Consolidated Tape.35 The Trust believes that the proposal to list and
submission, all subsequent disseminates the foreign currency spot trade the Shares is reasonably designed
amendments, all written statements prices for each of the Trusts and the IIV to promote fair disclosure of
with respect to the proposed rule per Share at least every 15 seconds on information that may be necessary to
change that are filed with the its Web site during the Opening, Core price the Shares appropriately. The
Commission, and all written Trading, and Late Trading Sessions of Commission notes that the Sponsor has
communications relating to the the Exchange. In addition, the Sponsor represented that, prior to listing, the
proposed rule change between the publishes the NAV and NAV per Share NAV for each Trust would be calculated
Commission and any person, other than for each Trust on each day that the daily and made available to all market
those that may be withheld from the Exchange is open for regular trading on participants at the same time.36 NYSE
public in accordance with the the Trusts’ Web site. Investors may Arca Equities Rule 8.202(i) provides
provisions of 5 U.S.C. 552, will be obtain on a 24-hour basis foreign that, in connection with trading in the
available for inspection and copying in currency pricing information based on applicable foreign currency, options,
the Commission’s Public Reference the foreign currency spot price of each futures or options on futures on such
Room, 100 F Street, NE., Washington, applicable foreign currency from currency, or any other derivatives based
DC 20549, on official business days various financial information service on such currency, including Currency
between the hours of 10 a.m. and 3 p.m. providers. Current spot prices are also Trust Shares, an ETP Holder acting as a
Copies of such filing also will be generally available with bid/ask spreads Market Maker (as defined in NYSE Arca
available for inspection and copying at from foreign exchange dealers. In Equities Rule 1.1(u)) in the Shares is
the principal offices of the Exchange. restricted from using any material non-
All comments received will be posted 31 In approving this rule change, the Commission
public information received from any
without change; the Commission does notes that it has considered the proposed rule’s person associated with such ETP Holder
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impact on efficiency, competition, and capital


not edit personal identifying formation. See 15 U.S.C. 78c(f). who is trading such foreign currency,
information from submissions. You 32 15 U.S.C. 78f(b)(5). options, futures or options on futures on
should submit only information that 33 See supra note 5. such currency, or any other derivatives
you wish to make available publicly. All 34 15 U.S.C. 78k–1(a)(1)(C)(iii).

submissions should refer to File 35 See supra note 12 and accompanying text. 36 See supra note 15.

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42216 Federal Register / Vol. 72, No. 147 / Wednesday, August 1, 2007 / Notices

based on such currency. In addition, trading no later than the beginning of (‘‘Act’’),1 and Rule 19b–4 thereunder,2
NYSE Arca Equities Rule 8.202(g) the trading day following the notice is hereby given that on July 24,
prohibits an ETP Holder acting as a interruption. 2007, the Philadelphia Stock Exchange,
registered Market Maker in the Shares (3) Prior to listing and trading the Inc. (‘‘Phlx’’ or ‘‘Exchange’’) filed with
from being affiliated with a market Shares, the Exchange represents that it the Securities and Exchange
maker in the applicable foreign will inform its ETP Holders in the Commission (‘‘Commission’’) the
currency, options, futures or options on Bulletin of the special characteristics proposed rule change asescribed in
futures on such currency, or any other and risks associated with trading the Items I and II below, which Items have
derivatives based on such currency, Shares. been substantially prepared by the Phlx.
unless adequate information barriers are This approval order is based on the On July 25, 2007 the Exchange filed
in place, as provided in NYSE Arca Exchange’s representations. Amendment No. 1 to the proposal. The
Equities Rule 7.26. The Commission finds good cause for Exchange filed the proposal as a ‘‘non-
The Commission also believes that the controversial’’ proposed rule change
approving this proposal before the
Exchange’s trading halt rules are
thirtieth day after the publication of pursuant to section 19(b)(3)(A) of the
reasonably designed to prevent trading
notice thereof in the Federal Register. Act 3 and Rule 19b–4(f)(6) thereunder,4
in the Shares when transparency is
As noted above, the Commission which rendered the proposal effective
impaired. NYSE Arca Equities Rule
previously approved the original listing upon filing with the Commission. The
8.202(e)(2) provides that, when the
and trading of the Shares on NYSE and Commission is publishing this notice to
Exchange is the listing market, if the
the trading of the Shares pursuant to solicit comments on the proposed rule
value of the underlying foreign currency
UTP on the Exchange.38 The change, as amended, from interested
or IIV is no longer calculated or
Commission presently is not aware of persons.
available on at least a 15-second delayed
basis, the Exchange would consider any regulatory issue that should cause it
to revisit those findings or would I. Self-Regulatory Organization’s
suspending trading in the Shares.37 Statement of the Terms of Substance of
NYSE Arca Equities Rule 8.202(e)(2) preclude the listing and trading of the
Shares on the Exchange. Accelerating the Proposed Rule Change
also provides that the Exchange may
seek to delist the Shares in the event the approval of this proposed rule change
The Exchange proposes to extend a
value of the applicable foreign currency would allow the Shares to be listed on
pilot (the ‘‘Pilot’’) that permits certain
or IIV is no longer calculated or the Exchange without undue delay and
options series to be quoted and traded
available as required. continuously traded without
in increments of $0.01. The text of the
The Commission further believes that interruption, to the benefit of investors.
proposed rule change is available at
the trading rules and procedures to V. Conclusion Phlx, the Commission’s Public
which the Shares will be subject Reference Room, and http://
pursuant to this proposal are consistent It is therefore ordered, pursuant to
section 19(b)(2) of the Act,39 that the www.phlx.com.
with the Act. The Exchange has
represented that any securities listed proposed rule change (SR–NYSEArca– II. Self-Regulatory Organization’s
pursuant to this proposal will be 2007–57) be, and it hereby is, approved Statement of the Purpose of, and
deemed equity securities, and subject to on an accelerated basis. Statutory Basis for, the Proposed Rule
existing Exchange rules governing the For the Commission, by the Division of Change
trading of equity securities. Market Regulation, pursuant to delegated
In support of this proposal, the authority.40 In its filing with the Commission, the
Exchange has made the following Florence E. Harmon, Phlx included statements concerning
representations: Deputy Secretary. the purpose of, and basis for, the
(1) The Exchange represents that it [FR Doc. E7–14836 Filed 7–31–07; 8:45 am] proposed rule change and discussed any
intends to utilize its existing BILLING CODE 8010–01–P
comments it received on the proposed
surveillance procedures applicable to rule change. The text of these statements
derivative products to monitor trading may be examined at the places specified
in the Shares and that such procedures SECURITIES AND EXCHANGE in Item IV below. The Exchange has
are adequate to properly monitor COMMISSION prepared summaries, set forth in
Exchange trading of the Shares in all sections A, B, and C below, of the most
trading sessions and to deter and detect significant aspects of such statements.
[Release No. 34–56141; File No. SR-Phlx-
violations of Exchange rules. The 2007–53]
Exchange may obtain information via A. Self-Regulatory Organization’s
ISG from other exchanges who are Statement of the Purpose of, and
Self-Regulatory Organizations;
members or affiliates of ISG. Statutory Basis for, the Proposed Rule
Philadelphia Stock Exchange, Inc.;
Specifically, the Exchange can obtain Change
Notice of Filing and Immediate
such information from Phlx in Effectiveness of Proposed Rule 1. Purpose
connection with foreign currency Change as Modified by Amendment
options trading on Phlx and from CME No. 1 Thereto Relating to the Extension The purpose of the proposed rule
in connection with foreign currency of a Pilot Program to Quote and Trade change is to continue to permit
futures trading on CME. Options in Penny Increments specified options series to be quoted
(2) The Exchange represents that if the and traded in increments of $0.01 by
interruption to the calculation or wide July 24, 2007. extending the Pilot through September
dissemination of the value of the Pursuant to section 19(b)(1) of the 27, 2007.
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underlying foreign currency or IIV Securities Exchange Act of 1934


persists past the trading day in which it 1 15 U.S.C. 78s(b)(1).
occurred, the Exchange would halt 38 See supra notes 5 and 6. 2 17 CFR 240.19b–4.
39 15 U.S.C. 78s(b)(2). 3 15 U.S.C. 78s(b)(3)(A).
37 See supra note 22. 40 17 CFR 200.30–3(a)(12). 4 17 CFR 240.19b–4(f)(6).

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