[Federal Register Volume 72, Number 68 (Tuesday, April 10, 2007)]
[Notices]
[Pages 17973-17975]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-6675]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55577; File No. SR-NYSEArca-2007-32]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Relating to NYSE 
Arca Marketplace Trading Sessions

April 3, 2007.
    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 March 23, 2007, NYSE Arca, Inc. (``NYSE Arca'' or ``Exchange''), 
through its wholly owned subsidiary NYSE Arca Equities, Inc. (``NYSE 
Arca Equities''), filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I and 
II below, which Items have been substantially prepared by the Exchange. 
The Exchange filed the proposal pursuant to Section 19(b)(3)(A) of the 
Act \3\ and Rule 19b-4(f)(6) thereunder,\4\ which renders the proposed 
rule change effective upon filing with the Commission.
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    \1\ 15 U.S.C.78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes, through NYSE Arca Equities, to update the 
list in NYSE Arca Equities Rule 7.34 of securities eligible to trade in 
one or more, but not all three, of the Exchange's trading sessions. The 
Exchange proposes to add to the list shares of certain Funds 
(``Shares'') that are traded on NYSE Arca, L.L.C. (``NYSE Arca 
Marketplace''), the equities trading facility of NYSE Arca Equities, 
pursuant to unlisted trading privileges (``UTP''). The text of the 
proposed rule change is available on the Exchange's Web site (http://www.nysearca.com), at the principal office of the Exchange, and at the 
Commission's Public Reference Room.

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 Exchange included statements 
concerning the purpose of and basis for the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange 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
    NYSE Arca Equities Rule 7.34 currently provides, in part, that NYSE 
Arca Marketplace shall have three trading sessions each day: an Opening 
Session (1 a.m. Pacific Time (``PT'') to 6:30 a.m. PT), a Core Trading 
Session (6:30 a.m. PT to 1 p.m. PT) and a Late Trading Session (1 p.m. 
PT to 5 p.m. PT), and that the Core Trading Session for securities 
described in NYSE Arca Equities Rules 5.1(b)(13), 5.1(b)(18), 
5.2(j)(3), 8.100, 8.200, 8.201, 8.202, 8.203, 8.300, and 8.400 (each, a 
``Derivative Securities Product'') shall conclude at 1:15 p.m. PT.\5\
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    \5\ NYSE Arca Equities Rules 5.1(b)(13), 5.2(j)(3), 8.100, 
8.200, 8.201, 8.202, 8.203, 8.300, and 8.400 relate to Unit 
Investment Trusts, Investment Company Units, Portfolio Depositary 
Receipts, Trust Issued Receipts, Commodity-Based Trust Shares, 
Currency Trust Shares, Commodity Index Trust Shares, Partnership 
Units, and Paired Trust Shares, respectively. See Securities 
Exchange Act Release No. 54997 (December 21, 2006), 71 FR 78501 
(December 29, 2006) (SR-NYSEArca-2006-77) (amending NYSE Arca 
Equities Rule 7.34).
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    NYSE Arca Equities Rule 7.34 includes a list of those securities 
which are eligible to trade in one or more, but not all three, of the 
Exchange's trading sessions. The Exchange maintains on its Internet Web 
site (http://www.nysearca.com) a list that identifies all securities 
traded on the NYSE Arca Marketplace that do not trade for the duration 
of each of the three sessions specified in NYSE Arca Equities Rule 
7.34. The Exchange proposes to add the following securities to these 
list: (1) PowerShares DB Agriculture Fund; (2) PowerShares DB Base 
Metals Fund; (3) PowerShares DB Energy Fund; (4) PowerShares DB Gold 
Fund; (5) PowerShares DB Oil Fund; (6) PowerShares DB Precious Metals 
Fund; (7) PowerShares DB Silver Fund; (8) PowerShares DB U.S. Dollar 
Index Bearish Fund; and (9) PowerShares DB

[[Page 17974]]

U.S. Dollar Index Bullish Fund.\6\ These securities, which are Trust 
Issued Receipts as described in NYSE Arca Equities Rule 8.200 
Commentary .02, are traded on the NYSE Arca Marketplace pursuant to 
UTP.
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    \6\ The Commission has approved the trading of Shares of the 
PowerShares DB Agriculture Fund, PowerShares DB Base Metals Fund, 
PowerShares DB Energy Fund, PowerShares DB Gold Fund, PowerShares DB 
Oil Fund, PowerShares DB Precious Metals Fund, and PowerShares DB 
Silver Fund on the NYSE Arca Marketplace pursuant to UTP. See 
Securities Exchange Act Release No. 55453 (March 13, 2007), 72 FR 
13333 (March 21, 2007) (SR-NYSEArca-2006-62). The Commission has 
approved the trading of Shares of the PowerShares DB U.S. Dollar 
Index Bearish Fund and PowerShares DB U.S. Dollar Index Bullish Fund 
on the NYSE Arca Marketplace pursuant to UTP. See Securities 
Exchange Act Release No. 55484 (March 16, 2007), 72 FR 13847 (March 
23, 2007) (SR-NYSEArca-2006-67).
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    The Exchange proposes to delete the iShares[supreg] FTSE/Xinhua 
China 25 Index Fund from the lists since these securities are eligible 
to trade in all three of the Exchange's trading sessions.\7\ These 
securities, which are Investment Company Units described in NYSE Arca 
Equities Rule 5.2(j)(3), are traded on the NYSE Arca Marketplace 
pursuant to UTP.
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    \7\ The Commission has approved trading of these securities on 
the NYSE Arca Marketplace pursuant to UTP. See Securities Exchange 
Act Release No. 50799 (December 6, 2004), 69 FR 72242 (December 13, 
2004) (SR-PCX-2004-99).
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    The Exchange proposes to change the trading sessions of 
iShares[supreg] COMEX Gold Trust trading session to accurately reflect 
that they are traded in the core trading session only.\8\ The 
securities, which are Commodity-Based Trust Shares as described in NYSE 
Arca Equities Rule 8.201, are traded on the Exchange pursuant to UTP.
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    \8\ The Commission has approved the trading of these securities 
on the NYSE Arca Marketplace pursuant to UTP. See Securities 
Exchange Act Release No. 51067 (January 21, 2005), 70 FR 3952 
(January 27, 2005) (SR-PCX-2004-132).
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\9\ in general, and furthers the 
objectives of Section 6(b)(5),\10\ in particular, in that it is 
designed to facilitate transactions in securities, to promote just and 
equitable principles of trade, to enhance competition, and to protect 
investors and the public interest.
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    \9\ 15 U.S.C. 78f(b).
    \10\ 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

    Because the foregoing proposed rule change does not:
    (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 on which it was 
filed, or such shorter time as the Commission may designate, if 
consistent with the protection of investors and the public interest, it 
has become effective pursuant to Section 19(b)(3)(A) of the Act \11\ 
and Rule 19b-4(f)(6) thereunder.\12\
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    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 
requires an exchange to give 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 days 
prior to the date of filing of the proposed rule change, or such 
shorter time as designated by the Commission. The Commission has 
determined to waive the five-day pre-filing notice requirement in 
this case.
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    The Exchange has asked the Commission to waive the 30-day operative 
delay. The Commission believes that such waiver is consistent with the 
protection of investors and the public interest because the proposed 
rule change should provide transparency and more clarity with respect 
to the trading hours eligibility of certain derivative securities 
products and should promote consistency in the trading halts of 
derivative securities. The Commission notes that this filing does not 
change the trading hours of the Derivative Securities Products listed 
in NYSE Arca Equities Rule 7.34, but codifies trading hour sessions 
that have been established through other rule changes or through the 
use of the Exchange's generic listing standards pursuant to Rule 19b-
4(e) under the Act. For these reasons, the Commission designates the 
proposed rule change as operative immediately.\13\
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    \13\ For purposes only of waiving the operative date of this 
proposal, the Commission has considered the 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 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 e-mail to [email protected]. Please include File 
Number SR-NYSEArca-2007-32 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-1090.
    All submissions should refer to File Number SR-NYSEArca-2007-32. 
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. Copies of such 
filing will also 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-NYSEArca-2007-32 and should be submitted by or before 
May 1, 2007.


[[Page 17975]]


    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-6675 Filed 4-9-07; 8:45 am]
BILLING CODE 8010-01-P