[Federal Register Volume 69, Number 107 (Thursday, June 3, 2004)]
[Notices]
[Pages 31439-31440]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-12552]



[[Page 31439]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-49776; File No. SR-NYSE-2004-26]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change by the New York Stock Exchange, 
Inc. To Extend the Trading Hours for Three Exchange-Traded Funds Listed 
on the Exchange

May 26, 2004.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on May 20, 2004, the New York Stock Exchange, Inc. (``NYSE'' or 
``Exchange'') 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 by the NYSE. The Commission is 
publishing this notice to solicit comments on the proposed rule change 
from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The NYSE proposes to specify that 4:15 p.m. (New York time) is the 
closing time applicable to trading on the NYSE in the following 
exchange-traded funds (``ETFs'') listed on the Exchange: Fresco Dow 
Jones STOXX 50SM Fund, Fresco Dow Jones EURO STOXX 
50SM Fund, and iSharesa[reg] S&P Global 100 Fund.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the NYSE 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. The NYSE has prepared summaries, set forth in sections 
A, B, and C below, of the most significant aspects of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to specify that 4:15 p.m. (New York time) is 
the closing time applicable to trading on the NYSE in the following 
ETFs listed on the Exchange: Fresco Dow Jones STOXX 50SM 
Fund (symbol: FEU), Fresco Dow Jones EURO STOXX 50SM Fund 
(symbol: FEZ), and iShares[reg] S&P Global 100 Fund (symbol: IOO).\3\ 
The Commission previously has approved the listing and trading of these 
ETFs on the Exchange.\4\
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    \3\ ``Fresco Index Shares,'' ``Dow Jones,'' and ``STOXX'' are 
the respective trademarks or service marks of Fresco Index Shares 
Funds, Dow Jones & Company, Inc., and STOXX Limited. ``iShares'' is 
a registered trademark of Barclays Global Investors, Inc.
    \4\ See Securities Exchange Act Release Nos. 46686 (October 18, 
2002), 67 FR 65388 (October 24, 2002 (SR-NYSE-2002-51) (approving 
listing and trading of FEU and FEZ on the NYSE); and 43658 (December 
2, 2000), 65 FR 77408 (December 11, 2000) (SR-NYSE-00-53) (approving 
listing and trading of IOO on the NYSE).
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    The current trading hours for FEU and FEZ are 9:30 a.m. to 4:15 
p.m. These securities currently trade until 4:15 p.m. pursuant to NYSE 
Rule 1100(e), which states that any series of Investment Company Units 
(which term encompasses ETFs) so designated by the Exchange may be 
traded until 4:15 p.m. In SR-NYSE-2002-51, the Exchange stated 
incorrectly that the close of trading in these ETFs would be 4 p.m. The 
Exchange is correcting the misstatement in SR-NYSE-2002-51 and hereby 
specifies these securities may be traded until 4:15 p.m.
    In SR-NYSE-00-53, the Exchange stated that IOO would be traded 
until 4 p.m. and that at such time as futures contracts are traded on 
the S&P Global 100 Index trading would be permitted until 4:15 p.m. The 
Exchange has now determined that IOO should trade until 4:15 p.m. 
pursuant to NYSE Rule 1100(e), notwithstanding that futures on the 
underlying index are not currently traded. The Exchange believes that 
trading IOO until 4:15 p.m. will provide investors with greater 
investment flexibility and will be generally consistent with trading 
hours applicable to most ETF trading on the NYSE and in other U.S. 
securities markets.
2. Statutory Basis
    The Exchange believes that the statutory basis for this proposed 
rule change is the requirement under section 6(b)(5) of the Act \5\ 
that an exchange have rules that are designed to prevent fraudulent and 
manipulative acts and practices, to promote just and equitable 
principles of trade, to remove impediments to, and perfect the 
mechanism of a free and open market and, in general, to protect 
investors and the public interest.
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    \5\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    The Exchange has neither solicited nor received written comments on 
the proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The Exchange asserts that the foregoing proposed rule change has 
become effective upon filing pursuant to section 19(b)(3)(A) of the Act 
\6\ and Rule 19b-4(f)(6) thereunder \7\ because it does not:
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    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 17 CFR 240.19b-4(f)(6).
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    (i) Significantly affect the protection of investors or the public 
interest;
    (ii) Impose any significant burden on competition; and
    (iii) Become operative for 30 days from the date of filing, or such 
shorter time as the Commission may designate if consistent with the 
protection of investors and the public interest; provided that the 
self-regulatory organization has given the Commission written notice of 
its intent to file the proposed rule change at least five business days 
prior to the filing date of the proposed rule change.\8\
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    \8\ As required under Rule 19b-4(f)(6)(iii), the NYSE provided 
the Commission with written notice of its intent to file the 
proposed rule change at least five business days prior to the filing 
date.
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    The NYSE has requested that the Commission waive the 30-day period, 
which would make the rule change operative immediately. The Commission 
believes that it is consistent with the protection of investors and the 
public interest to waive the 30-day pre-operative period in this case. 
Allowing the rule change to become operative immediately should provide 
investors with greater investment flexibility and standardize the 
trading hours applicable to most ETFs trading on the NYSE and on other 
exchanges.\9\
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    \9\ For the purposes only of accelerating the operative date of 
this proposal, the Commission has considered the proposed rule's 
impact on efficiency, competition, and capital formation. See 15 
U.S.C. 78c(f).
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    At any time within 60 days of the filing of the proposed rule 
change, the Commission may summarily abrogate such rule change if it 
appears to the

[[Page 31440]]

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:

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an e-mail to [email protected]. Please include 
File Number SR-NYSE-2004-26 on the subject line.

Paper Comments:

     Send paper comments in triplicate to Jonathan G. Katz, 
Secretary, Securities and Exchange Commission, 450 Fifth Street, NW., 
Washington, DC 20549-0609.

All submissions should refer to File Number SR-NYSE-2004-26. 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 (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for inspection and 
copying in the Commission's Public Reference Room, 450 Fifth Street, 
NW., Washington, DC 20549. Copies of such filing also will be available 
for inspection and copying at the principal office of the NYSE. 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-NYSE-2004-26 and should be 
submitted on or before June 24, 2004.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 04-12552 Filed 6-2-04; 8:45 am]
BILLING CODE 8010-01-P