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20344 Federal Register / Vol. 73, No.

73 / Tuesday, April 15, 2008 / Notices

Commission process and review your Securities and Exchange Commission asset value (‘‘NAV’’).3 The Exchange
comments more efficiently, please use (‘‘Commission’’) the proposed rule also proposes to amend NYSE Arca
only one method. The Commission will change as described in Items I, II, and Equities Rule 7.34 (Trading Sessions) to
post all comments on the Commission’s III below, which Items have been reference the securities described in
Internet Web site (http://www.sec.gov/ substantially prepared by the Exchange. proposed NYSE Arca Equities Rule
rules/sro.shtml). Copies of the On April 4, 2008, the Exchange filed 8.204. Additionally, the Exchange
submission, all subsequent Amendment No. 1 to the proposed rule proposes to amend its listing fees by
amendments, all written statements change. The Commission is publishing incorporating the securities described in
with respect to the proposed rule this notice to solicit comments on the proposed NYSE Arca Equities Rule
change that are filed with the proposed rule change, as amended, from 8.204 in the term ‘‘Derivative Securities
Commission, and all written interested persons. Products.’’
communications relating to the
proposed rule change between the I. Self-Regulatory Organization’s Further, pursuant to this proposed
Commission and any person, other than Statement of the Terms of Substance of rule change, the Exchange proposes to
those that may be withheld from the the Proposed Rule Change list and trade the Shares of the Fund.
public in accordance with the The Shares, which represent ownership
provisions of 5 U.S.C. 552, will be The Exchange proposes to adopt new
of a fractional undivided beneficial
available for inspection and copying in NYSE Arca Equities Rule 8.204
interest in the net assets of the Fund,
the Commission’s Public Reference (Commodity Futures Trust Shares) and
will conform to the initial and
Room, 100 F Street, NE., Washington, to list and trade shares (‘‘Shares’’) of the
continued listing criteria under
DC 20549, on official business days AirShares TM EU Carbon Allowances
Fund (‘‘Fund’’) pursuant to the proposed NYSE Arca Equities Rule
between the hours of 10 a.m. and 3 p.m. 8.204. The Fund is a commodity pool,
Copies of the filing also will be available proposed rule. The text of the proposed
rule change is available at the Exchange, as defined in the CEA and the
for inspection and copying at the applicable rules of the CFTC, and was
principal office of CBOE. All comments the Commission’s Public Reference
Room, and http://www.nyse.com. formed as a Delaware statutory trust on
received will be posted without change;
August 13, 2007.4 XShares Advisors
the Commission does not edit personal II. Self-Regulatory Organization’s LLC, a Delaware limited liability
identifying information from Statement of the Purpose of, and company, will serve as sponsor of the
submissions. You should submit only Statutory Basis for, the Proposed Rule
information that you wish to make Fund (‘‘Sponsor’’). The Sponsor was
Change formed on March 15, 2006, is a wholly
available publicly. All submissions
should refer to SR–CBOE–2008–39 and owned subsidiary of XShares Group
In its filing with the Commission, the
should be submitted on or before May LLC, a Delaware limited liability
Exchange included statements
6, 2008. concerning the purpose of, and basis for, company, and will serve as the CPO of
the proposed rule change and discussed the Fund. The Sponsor will be
For the Commission, by the Division of
Trading and Markets, pursuant to delegated any comments it received on the registered as a CPO with the CFTC and
authority.13 proposed rule change. The text of these will be a member of the National
Florence E. Harmon, statements may be examined at the Futures Association (‘‘NFA’’) prior to
Deputy Secretary. places specified in Item IV below. The the commencement of operations of the
[FR Doc. E8–7933 Filed 4–14–08; 8:45 am] Exchange has prepared summaries, set Fund.
BILLING CODE 8011–01–P forth in Sections A, B, and C below, of
3 The Commission has approved similar NYSE
the most significant aspects of such
Arca Equities rules to list and trade products based
statements. on or related to commodities. See Securities
SECURITIES AND EXCHANGE Exchange Act Release Nos. 54025 (June 21, 2006),
COMMISSION A. Self-Regulatory Organization’s 71 FR 36856 (June 28, 2006) (SR–NYSEArca–2006–
Statement of the Purpose of, and 12) (approving new NYSE Arca Equities Rule 8.203
[Release No. 34–57636; File No. SR– Statutory Basis for, the Proposed Rule ‘‘Commodity-Indexed Trust Shares’’ for trading
NYSEArca–2008–09] Change pursuant to UTP the iShares GSCI Commodity-
Indexed Trust); 51067 (January 21, 2005), 70 FR
Self-Regulatory Organizations; NYSE 1. Purpose 3952 (January 27, 2005) (SR–PCX–2004–132)
Arca, Inc.; Notice of Filing of a (approving new NYSE Arca Equities Rule 8.201
‘‘Commodity-Based Trust Shares’’ for trading
Proposed Rule Change, and The Exchange proposes to adopt new pursuant to UTP the iShares COMEX Gold Trust);
Amendment No. 1 Thereto, Relating to NYSE Arca Equities Rule 8.204 to 56041 (July 11, 2007), 72 FR 39114 (July 17, 2007)
the Listing and Trading of Shares of permit the listing and trading, or trading (SR–NYSEArca–2007–43) (approving listing of
the AirShares TM EU Carbon pursuant to unlisted trading privileges shares of iShares COMEX Gold Trust pursuant to
NYSE Arca Equities Rule 8.201); 53875 (May 25,
Allowances Fund (‘‘UTP’’), of shares issued by a trust that 2006), 71 FR 32164 (June 2, 2006) (SR–NYSEArca–
is a commodity pool, as defined in the 2006–11) (approving new NYSE Arca Equities Rule
April 8, 2008.
Commodity Exchange Act (‘‘CEA’’) and 8.300 ‘‘Partnership Shares’’ for trading pursuant to
Pursuant to Section 19(b)(1) of the regulations thereunder, and that is UTP the United States Oil Fund, LP); and 53736
Securities Exchange Act of 1934 (April 27, 2006), 71 FR 26582 (May 5, 2006) (SR–
managed by a commodity pool operator PCX–2006–22) (approving new Commentary .02 to
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
(‘‘CPO’’) registered with the Commodity NYSE Arca Equities Rule 8.200 ‘‘Investment
notice is hereby given that on March 14,
Futures Trading Commission (‘‘CFTC’’). Shares’’ for trading pursuant to UTP the DB
2008, NYSE Arca, Inc. (‘‘NYSE Arca’’ or Commodity Index Tracking Fund).
Such shares would hold long positions
‘‘Exchange’’), through its wholly owned 4 The Fund is not an investment company
in futures contracts on a specified
subsidiary, NYSE Arca Equities, Inc. registered under the Investment Company Act of
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commodity or interests in a commodity 1940, according to the Registration Statement on


(‘‘NYSE Arca Equities’’), filed with the
pool which, in turn, would hold such Form S–1 for the Fund, which was filed with the
long positions. In addition, such shares Commission on December 14, 2007 (File No. 333–
13 17 CFR 200.30–3(a)(12). 145448) (‘‘Registration Statement’’). The
1 15 U.S.C. 78s(b)(1). would be issuable and redeemable daily information in this proposed rule change is based
2 17 CFR 240.19b–4. in specified aggregate amounts at net upon representations in the Registration Statement.

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Federal Register / Vol. 73, No. 73 / Tuesday, April 15, 2008 / Notices 20345

a. Proposed Listing Rules • If the Indicative Trust Value is no Maker in the Commodity Futures Trust
longer disseminated on at least a 15- Shares from being affiliated with a
Proposed NYSE Arca Equities Rule market maker in the underlying
second delayed basis during the
8.204(c) defines a ‘‘Commodity Futures commodity, related futures or options
Exchange’s Core Trading Session, as
Trust Share’’ as a security that: (1) Is on futures, or any other related
defined in NYSE Arca Equities Rule
issued by a trust that (a) is a commodity derivative, unless adequate information
7.34(a); or
pool, as defined in the CEA and
• If such other event shall occur or barriers are in place, as provided in
regulations thereunder, managed by a NYSE Arca Equities Rule 7.26.
condition exists that, in the opinion of
CPO registered with the CFTC, and (b) Proposed NYSE Arca Equities Rule
the Exchange, makes further dealings on
holds positions in futures contracts that 8.204(g) relates to the Exchange’s
the Exchange inadvisable.
track the performance of a specified limitation of liability. Proposed NYSE
In addition, the Exchange will remove
commodity, or interests in a commodity Arca Equities Rule 8.204(h) specifically
the Commodity Futures Trust Shares
pool which, in turn, holds such provides that the Exchange will file
from listing upon termination of the
positions; and (2) is issued and separate proposals under Section 19(b)
trust.
redeemed daily in specified aggregate of the Act 5 before listing and trading
amounts at NAV. The term ‘‘futures Proposed NYSE Arca Equities Rule
8.204(e)(3) provides that the term of a separate and distinct Commodity
contract’’ is a ‘‘contract of sale of a Futures Trust Shares.
commodity for future delivery’’ set forth trust is as stated in the trust’s
Commentary .01 to proposed NYSE
in Section 2(a) of the CEA. The term prospectus, but that the trust may be
Arca Equities Rule 8.204 requires ETP
‘‘commodity’’ is defined in Section terminated earlier as may be specified in
Holders to provide all purchasers of
1(a)(4) of the CEA. the prospectus. Proposed NYSE Arca
newly issued Commodity Futures Trust
Equities Rule 8.204(e)(4) sets forth
Proposed NYSE Arca Equities Rule Shares with a prospectus. Commentary
proposed requirements for the trustee of .02 to proposed NYSE Arca Equities
8.204(d) provides that the Exchange
a trust: (1) The trustee of a trust must Rule 8.204 provides that trading in the
may trade, either by listing or pursuant
be a trust company or banking Commodity Futures Trust Shares will
to UTP, Commodity Futures Trust
institution having substantial capital occur during the trading hours specified
Shares that are based on an underlying
and surplus and the experience and in NYSE Arca Equities Rule 7.34.
commodity futures contract. Each issue
facilities for handling corporate trust Commentary .03 to proposed NYSE
of Commodity Futures Trust Shares
business; in cases where, for any reason, Arca Equities Rule 8.204 requires that if
would be designated as a separate series
an individual has been appointed as the Indicative Trust Value or the value
and would be identified by a unique
trustee, a qualified trust company or of the underlying futures contract is not
symbol.
banking institution must be appointed being disseminated as required, the
The Commodity Futures Trust Shares co-trustee; and (2) no change is to be
will be subject to the criteria for the Exchange may halt trading during the
made in the trustee of a listed issue day in which the interruption to the
listing and trading set forth in proposed without prior notice to and approval of
NYSE Arca Equities Rule 8.204(e). dissemination of the Indicative Trust
the Exchange. Proposed NYSE Arca Value or the value of the underlying
Proposed NYSE Arca Equities Rule Equities Rule 8.204(e)(5) provides that
8.204(e)(1) provides that the Exchange futures contract occurs. If the
voting rights will be as set forth in the interruption to the dissemination of the
will establish a minimum number of applicable trust prospectus.
Commodity Futures Trust Shares that Indicative Trust Value or the value of
Proposed NYSE Arca Equities Rule the underlying futures contract persists
will be required to be outstanding at the 8.204(f) sets forth certain restrictions on
time of commencement of trading. The past the trading day in which it
ETP Holders acting as registered Market occurred, the Exchange will halt trading
proposed continued listing criteria in Makers in Commodity Futures Trust
proposed NYSE Arca Equities Rule no later than the beginning of the
Shares to facilitate surveillance. trading day following the interruption.
8.204(e)(2) provide for the suspension of Proposed NYSE Arca Equities Rules
trading in or removal from listing of the In addition, if the Exchange becomes
8.204(f)(2)–(3) require that the ETP aware that the NAV with respect to a
Commodity Futures Trust Shares under Holder acting as a registered Market
any of the following circumstances: series of Commodity Futures Trust
Maker in the Commodity Futures Trust Shares is not disseminated to all market
• If, following the initial 12-month Shares provide the Exchange with participants at the same time, it will halt
period beginning upon the necessary information relating to its trading in such series until such time as
commencement of trading of the Shares: trading in the underlying commodity, the NAV or the Disclosed Portfolio is
(1) The trust has fewer than 50,000 related futures or options on futures, or available to all market participants.
Shares issued and outstanding; (2) the any other related derivatives. Proposed Commentary .04 to proposed NYSE
market value of all Shares is less than NYSE Arca Equities Rule 8.204(f)(4) Arca Equities Rule 8.204 provides that
$1,000,000; or (3) there are fewer than prohibits the ETP Holder acting as a the Exchange’s rules governing the
50 record and/or beneficial holders of registered Market Maker in the trading of equity securities apply to
Commodity Futures Trust Shares for 30 Commodity Futures Trust Shares from Commodity Futures Trust Shares.
consecutive trading days; using any material non-public Commentary .05 to proposed NYSE
• If the value of the underlying information received from any person Arca Equities Rule 8.204 provides that
futures contract is no longer calculated associated with an ETP Holder or the Exchange will implement written
or available on at least a 15-second employee of such person regarding surveillance procedures for Commodity
delayed basis during the Exchange’s trading by such person or employee in Futures Trust Shares.
Core Trading Session, as defined in the underlying commodity, related
NYSE Arca Equities Rule 7.34(a), from futures or options on futures, or any b. Amendments to NYSE Arca Equities
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a source unaffiliated with the sponsor, other related derivative (including the Rule 7.34
the trust, or the trustee; Commodity Futures Trust Shares). In The Exchange proposes to amend
• If the NAV for the trust is no longer addition, proposed NYSE Arca Equities NYSE Arca Equities Rule 7.34(a)(3) to
disseminated to all market participants Rule 8.204(f)(1) prohibits the ETP
at the same time; Holder acting as a registered Market 5 15 U.S.C. 78s(b).

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20346 Federal Register / Vol. 73, No. 73 / Tuesday, April 15, 2008 / Notices

add Commodity Futures Trust Shares to trade’’ emissions trading program 19b–4 under the Act 11 seeking approval
the list of securities for which the Core instituted by the European Union to continue trading the Shares if the
Trading Session on the Exchange (‘‘EU’’), in furtherance of the joint Fund invests in EUAs that constitute
concludes at 4:15 p.m. Eastern Time commitment of its member states under more than 10% of the weight of the
(‘‘ET’’). In addition, the Exchange the Kyoto Protocol to achieve certain Fund and where the principal trading
proposes to amend NYSE Arca Equities reductions in their emissions of market for such component is not a
Rule 7.34(a)(4) to include Commodity greenhouse gases from 2008 to 2012. member or affiliate member of the
Futures Trust Shares under ‘‘Derivative The net assets of the Fund will consist Intermarket Surveillance Group (‘‘ISG’’)
Securities Products’’ with respect to of long positions in ICE Futures ECX or where the Exchange does not have a
trading halts of certain derivative Carbon Financial Instrument Futures comprehensive surveillance sharing
securities products trading pursuant to Contracts (‘‘ECX CFI Futures agreement with such market. If the
UTP on the Exchange. Contracts’’).7 The ECX CFI Futures Kyoto Protocol or the EU ETS is
Contracts are standardized contracts extended beyond 2012, the Sponsor will
c. Amendments to Listing Fees determine and publicly disclose by no
developed by the European Climate
The Exchange proposes to add Exchange (‘‘ECX’’) and are listed and later than September 30, 2012 whether
Commodity Futures Trust Shares to the admitted to trading on ICE Futures 8 on it will extend the operation of the Fund
securities included under the term the London-based electronic platform, beyond December 2012. The Fund will
‘‘Derivative Securities Products’’ in note owned and operated by not be actively managed in that it will
3 of the NYSE Arca Equities Schedule IntercontinentalExchange, Inc. (also not engage in activities designed to
of Fees and Charges for Exchange known as the ICE Platform). ECX CFI obtain a profit from, or to ameliorate
Services. Futures Contracts are standardized losses caused by, changes in the value
d. Description of the Fund contractual instruments for futures on of its portfolio of EUAs.
deliverable EUAs issued under the EU More information about the Kyoto
The Sponsor has appointed Protocol, the EU ETS, the ECX CFI
ETS. Each ECX CFI Futures Contract
Environmental Capital Management, Futures Contracts, the Fund’s
provides for delivery of 1,000 EUAs on
LLC, an Arizona limited liability investment strategy, as well as further
a specified date at a specified price,
company, to serve as the commodity descriptions of the Shares, risks, NAV,
with each EUA being an entitlement to
trading advisor (‘‘CTA’’) of the Fund. creation, and redemption is contained
emit one ton of carbon dioxide
The CTA will be registered with the in the Registration Statement.12
equivalent gas.9
CFTC prior to commencement of the
Fund’s operations and will be a member The ECX CFI Futures Contracts trade e. Description of the Shares
of the NFA in such capacity. The CTA on the London-based ICE Platform from The Fund will create and redeem
is not an affiliate of the Sponsor or the 7 a.m. to 5 p.m. Greenwich Mean Time. Shares from time to time, but only by
Fund. The Sponsor has appointed: (1) According to ECX, ICE Futures is the authorized participants in one or more
Brown Brothers Harriman (‘‘Brown most liquid, pan-European platform for baskets, with each basket constituting a
Brothers’’ or ‘‘Administrator’’) as the carbon emissions trading, attracting over block of 100,000 Shares. In connection
administrator, custodian, and transfer 80% of the exchange-traded volume in with the Fund, a minimum of 100,000
agent of the Fund; and (2) ALPS that market. Shares will be required to be
Distributors, Inc. (‘‘Distributor’’) to Initially, the Fund will hold long outstanding at the start of trading. The
assist the Sponsor and the positions in ECX CFI Futures Contracts. Exchange states that this minimum
Administrator with certain functions The Fund may also invest in other number of Shares required to be
and duties relating to distribution and EUAs, including those that trade on outstanding is generally higher than
marketing. Newedge USA, LLC other exchanges.10 The Exchange will requirements that have been applied to
(‘‘Newedge USA’’) executes and clears file a proposed change pursuant to Rule previously listed series of exchange-
the Fund’s futures transactions and traded funds. The Exchange believes
provides other brokerage-related generally the value of the underlying futures that the proposed minimum number of
contracts, the Fund’s portfolio of fixed income
services. Newedge Alternative securities, as well as other factors such as the
Shares outstanding at the start of trading
Strategies, Inc. may execute foreign Fund’s expenses, and its hedging activities may will be sufficient to provide market
exchange or other over-the-counter cause a lack of correlation between the NAV of the liquidity.
transactions with the Fund, as principal. Shares and the value of the Fund’s portfolio of
futures contracts. f. Dissemination and Availability of
A variety of executing brokers selected 7 The Fund represents that the ECX CFI Futures Information About the Underlying
by the Sponsor may execute futures Contracts meets the definition of ‘‘futures contract’’ Futures Contracts and the Shares
transactions on behalf of the Fund. The as set forth in Section 2(a) of the CEA. The
executing brokers will give up all such Exchange states that carbon equivalent emissions The daily settlement prices for the
transactions to Newedge USA, which allowances meet the definition of ‘‘commodity’’ as EUAs are publicly available on the ICE
defined in Section 1(a)(4) of the CEA. Futures Web site at http://
will serve as the Fund’s clearing broker. 8 The Exchange states that ICE Futures, which is
The investment objective of the Fund a subsidiary of the IntercontinentalExchange, Inc. is
www.icefutures.com. In addition,
is to provide investors with investment a Recognised Investment Exchange in the United various market data vendors and news
results that correspond generally, before Kingdom and is supervised by the Financial publications publish futures prices and
payment of the Fund’s expenses and Services Authority under the terms of the Financial related data. Quote and last-sale
Services and Markets Act (2000).
liabilities, to the performance of a basket 9 The ECX CFI Futures Contract had average daily
information for the EUAs are widely
of exchange-traded futures contracts for trading volume of $135,717,089 (USD), or disseminated through a variety of
carbon equivalent emissions allowances approximately 87,587,602 Euro, representing 3,551 market data vendors worldwide. ICE
(‘‘EUAs’’) issued under the European contracts traded daily from January 1, 2008 through Futures also provides delayed futures
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March 11, 2008. information on current and past trading


Union Emissions Trading Scheme (‘‘EU 10 The Exchange will file a Form 19b–4 to obtain
ETS’’). The EU ETS 6 is a ‘‘cap and Commission approval for the continued listing and
sessions and market news free of charge
trading of the Shares should the Fund hold
6 According to the Registration Statement, while 11 15 U.S.C. 78a.
positions in EUAs other than ECX CFI Futures
the investment objective of the Fund is to track Contracts. 12 See supra at note 4.

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Federal Register / Vol. 73, No. 73 / Tuesday, April 15, 2008 / Notices 20347

on its Web site. The specific contract also readily available from ICE Futures, Contracts, for example, trade on the
specifications for the EUAs are also automated quotation systems, published London-based ICE Platform from 7 a.m.
available on the ICE Futures Web site. or other public sources, or on-line to 5 p.m. local time in London, England.
The Web site for the Fund at http:// information services. When the ICE Platform and the
www.airsharesfund.com, which is Information regarding market price Exchange are both open for trading, the
publicly accessible at no charge, will and volume of the Shares is and will be Indicative Fund Value can be expected
contain the following information: (1) continually available on a real-time to closely approximate the NAV per
The prior business day’s NAV per basis throughout the day on brokers’ Share. When the ICE Platform is closed
Share 13 and the reported closing price; computer screens and other electronic and the Exchange is open, trading
(2) the mid-point of the bid-ask price in services. The previous day’s closing spreads and the resulting premium or
relation to the NAV per Share as of the price and trading volume information discount on the Shares may widen and,
time the NAV is calculated (‘‘Bid-Ask will be published daily in the financial therefore, increase the difference
Price’’); 14 (3) calculation of the section of newspapers. Quotation and between the public trading price of the
premium or discount of such price last-sale information for the Shares will Shares and the NAV per Share. The
against such NAV per Share; (4) data in be available via the facilities of the Indicative Fund Value on a per-Share
chart form displaying the frequency Consolidated Tape Association. basis disseminated during the
distribution of discounts and premiums All pricing information will be quoted Exchange’s Core Trading Session should
of the Bid-Ask Price against the NAV in U.S. dollars, other than the current not be viewed as a real-time update of
per Share, within appropriate ranges for trading value of the Euro-denominated the Fund’s NAV, which is calculated
each of the four previous calendar EUAs, which will be quoted in Euro. only once a day.
quarters; (5) the prospectus and the The current trading price per Share will
g. Trading Halts
most recent periodic reports filed with be published continuously as trades
the Commission or required by the occur throughout each trading day on With respect to trading halts, the
CFTC; 15 and (6) other applicable the consolidated tape, Reuters, and/or Exchange may consider all relevant
quantitative information. Bloomberg. The most recent trading factors in exercising its discretion to
The Fund’s total portfolio value of each EUA is published on the halt or suspend trading in the Shares.18
composition, consisting primarily of Web site of the ECX at http:// Trading in the Shares will be halted if
long positions in ECX CFI Futures www.ecxeurope.com, under the heading the circuit breaker parameters under
Contracts and cash, will be disclosed ‘‘Market Data,’’ and each vintage futures NYSE Arca Equities Rule 7.12 are
each business day that the Exchange is contract in the Fund’s portfolio will be reached. Trading may also be halted
open for trading on the Fund’s Web site. published on the Fund’s Web site at because of market conditions or for
The Fund has informed the Exchange http://www.airsharesfund.com, or any reasons that, in the view of the
that Web site disclosure of portfolio successor thereto. Exchange, make trading in the Shares
holdings will be made daily and will To provide updated information inadvisable. These may include: (1) The
include, as applicable, the name and relating to the Fund for use by investors, extent to which trading is not occurring
value of each EUA and amount of cash professionals and persons wishing to in the underlying EUA futures contracts;
held in the portfolio of the Fund. create or redeem the Shares, the or (2) whether other unusual conditions
As noted above, the Fund’s NAV will Exchange or a major market data vendor or circumstances detrimental to the
be calculated and disseminated daily.16 will disseminate through the facilities of maintenance of a fair and orderly
The Exchange will disseminate for the the Consolidated Tape Association an market are present. Trading in the
Fund on a daily basis by means of updated Indicative Fund Value Shares also will be subject to
Consolidated Tape Association CQ High (‘‘Indicative Fund Value’’). 17 The Commentary .03 to proposed NYSE
Speed Lines information with respect to Indicative Fund Value, which is also Arca Equities Rule 8.204, which sets
the Indicative Fund Value (as discussed known as intraday indicative value (IIV) forth circumstances under which
below), recent Fund NAV, Shares or intraday optimized portfolio value trading in the Shares may be halted.
outstanding, and the Basket amount. (IOPV), is an estimate, updated on a h. Trading Rules
The Exchange will also make available real-time basis at least every 15 seconds,
on its Web site daily trading volume, of the NAV, which is disclosed only Under proposed NYSE Arca Equities
closing prices, and the Fund’s NAV per once per day. The Indicative Fund Rule 8.204(b), Commodity Futures Trust
Share. The closing price and settlement Value for the Fund will be disseminated Shares are included within the
prices of the EUAs held by the Fund are on a per-Share basis at least every 15 Exchange’s definition of ‘‘securities.’’
seconds during the Exchange’s Core The Exchange deems the Shares to be
13 The most recent end-of-day NAV of the Fund Trading Session. The Indicative Fund equity securities, thus rendering trading
and NAV per Share will be published by the Value will be calculated based on the in the Shares subject to the Exchange’s
Sponsor as of 4 p.m. ET on Reuters and/or existing rules governing the trading of
Bloomberg and on the Fund’s Web site at http://
previously-disclosed portfolio
www.airsharesfund.com. The end-of-day NAV per composition of the Fund, i.e., the equity securities. Commentary .02 to
Share will also be published the following morning futures contracts in the Fund’s portfolio, proposed NYSE Arca Equities Rule
on the consolidated tape. and will be adjusted to reflect the price 8.204 provides that transactions in
14 The Bid-Ask Price of Shares is determined
changes of the relevant EUAs. Commodity Futures Trust Shares will
using the highest bid and lowest offer as of the time occur during the trading hours specified
of calculation of the NAV per Share. The value of a Share may be
15 Monthly account statements conforming to influenced by the non-concurrent in Rule 7.34. Therefore, in accordance
CFTC and NFA requirements are posted on the trading hours between the Exchange and with NYSE Arca Equities Rule 7.34, the
Fund’s Web site at http://www.airsharesfund.com. the exchanges on which the EUAs trade. Shares will trade on the NYSE Arca
Additional reports may be posted on the Fund’s Marketplace from 4 a.m. to 8 p.m. ET.
While the Shares will trade from 4 a.m.
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Web site in the discretion of the Sponsor or as


required by regulatory authorities. to 8 p.m. ET, the ECX CFI Futures The Exchange states that it has
16 The Exchange will obtain a representation from appropriate rules to facilitate
the Fund that the Fund’s NAV per Share will be 17 The Indicative Fund Value is referred to as the

calculated daily and made available to all market Indicative Trust Value in proposed new NYSE Arca 18 See Commentary .04 to NYSE Arca Equities

participants at the same time. Equities Rule 8.204(e)(2)(iv). Rule 7.12.

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20348 Federal Register / Vol. 73, No. 73 / Tuesday, April 15, 2008 / Notices

transactions in the Shares during all Fund Value will not be calculated or public interest. The Exchange believes
trading sessions. publicly disseminated; (2) the that the proposed rules will facilitate
procedures for purchases and the listing and trading of additional
i. Surveillance
redemptions of Shares (and that Shares types of exchange-traded products that
The Exchange intends to utilize its are not individually redeemable); (3) will enhance competition among market
existing surveillance procedures Rule 9.2(a),22 which imposes a duty of participants, to the benefit of investors
applicable to derivative products (which due diligence on its ETP Holders to and the marketplace. In addition, the
will include Commodity Futures Trust learn the essential facts relating to every listing and trading criteria set forth in
Shares) to monitor trading in the Shares. customer prior to trading the Shares; (4) the proposed rules are intended to
The Exchange represents that these the risk involved in trading the Shares protect investors and the public interest.
procedures are adequate to properly during the Core and Late Trading
monitor Exchange trading of the Shares B. Self-Regulatory Organization’s
Sessions when the ECX CFI Futures
in all trading sessions and to deter and Statement on Burden on Competition
Contracts are not trading on the ICE
detect violations of Exchange rules and Platform; (5) how information regarding The Exchange does not believe that
applicable federal securities laws. the Indicative Fund Value is the proposed rule change will impose
The Exchange’s current trading disseminated; (6) the requirement that any burden on competition that is not
surveillance focuses on detecting ETP Holders deliver a prospectus to necessary or appropriate in furtherance
securities trading outside their normal investors purchasing newly issued of the purposes of the Act.
patterns. When such situations are Shares prior to or concurrently with the
detected, surveillance analysis follows C. Self-Regulatory Organization’s
confirmation of a transaction; and (7) Statement on Comments on the
and investigations are opened, where trading information.
appropriate, to review the behavior of Proposed Rule Change Received From
In addition, the Bulletin will Members, Participants, or Others
all relevant parties for all relevant reference that: (1) The Fund is subject
trading violations. to various fees and expenses described Written comments on the proposed
The Exchange may obtain information in the relevant registration statement; (2) rule change were neither solicited nor
via the ISG from other exchanges who that there is no regulated source of last- received.
are members or affiliate members of the sale information regarding physical III. Date of Effectiveness of the
ISG. In addition, the Exchange has an commodities; (3) the Commission has Proposed Rule Change and Timing for
Information Sharing Agreement in place no jurisdiction over the trading of EUAs; Commission Action
with ICE Futures for the purpose of and (4) the Financial Services Authority
providing information in connection in the United Kingdom has regulatory Within 35 days of the date of
with trading in, or related to, futures jurisdiction over the trading of EUAs publication of this notice in the Federal
contracts traded on ICE Futures. In and related options. The Bulletin will Register or within such longer period (i)
addition, the Exchange will file a also discuss any exemptive, no-action, as the Commission may designate up to
proposed change pursuant to Rule 19b– and interpretive relief granted by the 90 days of such date if it finds such
4 under the Act 19 seeking approval to Commission from any rules under the longer period to be appropriate and
continue trading the Shares if the Fund Act and disclose that the NAV for the publishes its reasons for so finding or
invests in EUAs (or pricing information Shares will be calculated after 4 p.m. ET (ii) as to which the self-regulatory
is used for a new or existing component) each trading day. organization consents, the Commission
that constitute more than 10% of the will:
weight of the Fund where the principal 2. Statutory Basis A. By order approve such proposed
trading market for such component is The basis under the Act for this rule change, or
proposed rule change is the requirement B. Institute proceedings to determine
not a member or affiliate member of ISG
under Section 6(b)(5) 23 that a national whether the proposed rule change
or where the Exchange does not have a
securities exchange have rules that are should be disapproved.
comprehensive surveillance sharing
agreement with such market. In designed to prevent fraudulent and IV. Solicitation of Comments
addition, the Exchange also has a manipulative acts and practices, to Interested persons are invited to
general policy prohibiting the promote just and equitable principles of submit written data, views, and
distribution of material, non-public trade, to foster cooperation and arguments concerning the foregoing,
information by its employees. coordination with persons engaged in including whether the proposed rule
facilitating transactions in securities, to change is consistent with the Act.
j. Information Bulletin remove impediments to and perfect the Comments may be submitted by any of
Prior to the commencement of mechanism of a free and open market the following methods:
trading, the Exchange will inform its and a national market system, and, in
ETP Holders 20 in an Information general, to protect investors and the Electronic Comments
Bulletin (‘‘Bulletin’’) of the special • Use the Commission’s Internet
characteristics and risks associated with 22 NYSE Arca Equities Rule 9.2(a) provides that
comment form (http://www.sec.gov/
trading the Shares. Specifically, the ETP Holders, before recommending a transaction,
must have reasonable grounds to believe that the rules/sro.shtml); or
Bulletin will discuss the following: (1) recommendation is suitable for the customer based • Send an e-mail to rule-
The risks involved in trading the Shares on any facts disclosed by the customer as to his comments@sec.gov. Please include File
during the Opening and Late Trading other security holdings and as to his financial Number SR–NYSEArca–2008–09 on the
Sessions 21 when an updated Indicative situation and needs. Further, the rule provides,
with a limited exception, that prior to the execution subject line.
of a transaction recommended to a non-institutional
19 15U.S.C. 78a. customer, the ETP Holder shall make reasonable
Paper Comments
jlentini on PROD1PC65 with NOTICES

20 SeeNYSE Arca Equities Rule 1.1(n) (defining efforts to obtain information concerning the • Send paper comments in triplicate
ETP Holder). customer’s financial status, tax status, investment to Nancy M. Morris, Secretary,
21 The Opening Trading Session is from 4 a.m. to objectives, and any other information that the ETP
9:30 a.m. ET and the Late Trading Session is from Holder believes would be useful to make a Securities and Exchange Commission,
4:15 p.m. to 8 p.m. ET. See NYSE Arca Equities recommendation. 100 F Street, NE., Washington, DC
Rule 7.34. 23 15 U.S.C. 78f(b)(5). 20549–1090.

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Federal Register / Vol. 73, No. 73 / Tuesday, April 15, 2008 / Notices 20349

All submissions should refer to File FOR FURTHER INFORMATION CONTACT: Mr. applicant, publication of which could cause
Number SR–NYSEArca–2008–09. This Kevin Maloney, Director, Office of competitive harm to the United States firm
file number should be included on the Defense Trade Controls Licensing, concerned.
subject line if e-mail is used. To help the Sincerely,
Directorate of Defense Trade Controls,
Jeffrey T. Bergner,
Commission process and review your Bureau of Political-Military Affairs, Assistant Secretary Legislative Affairs.
comments more efficiently, please use Department of State (202) 663–2023. Enclosure: Transmittal No. DDTC 076–07.
only one method. The Commission will SUPPLEMENTARY INFORMATION: Section November 13, 2007.
post all comments on the Commission’s 36(f) of the Arms Export Control Act Hon. Nancy Pelosi, Speaker of the House of
Internet Web site (http://www.sec.gov/ mandates that notifications to the Representatives.
rules/sro.shtml). Copies of the Congress pursuant to sections 36(c) and Dear Madam Speaker: Pursuant to Section
submission, all subsequent 36(d) must be published in the Federal 36(c) of the Arms Export Control Act, I am
amendments, all written statements Register when they are transmitted to transmitting, herewith, certification of a
with respect to the proposed rule proposed license for the export of defense
Congress or as soon thereafter as articles in the amount of $50,000,000 or
change that are filed with the practicable. more.
Commission, and all written The transaction contained in the attached
November 13, 2007.
communications relating to the Hon. Nancy Pelosi, Speaker of the House of certification involves the temporary export of
proposed rule change between the Representatives. a commercial communications satellite to
Commission and any person, other than Dear Madam Speaker: Pursuant to Section international waters for launch under the Sea
those that may be withheld from the 36(c) of the Arms Export Control Act, I am Launch program. This notification is for the
public in accordance with the transmitting, herewith, certification of a export of the satellite and associated launch
provisions of 5 U.S.C. 552, will be proposed license for the export of defense support equipment only. Transfer of
available for inspection and copying in articles in the amount of $100,000,000 or ownership to a U.S. company will be made
more. once the satellite is in orbit.
the Commission’s Public Reference The United States Government is prepared
The transaction contained in the attached
Room, 100 F Street, NE., Washington, certification involves the temporary export of to license the export of these items having
DC 20549, on official business days two (2) commercial communications taken into account political, military,
between the hours of 10 a.m. and 3 p.m. satellites to international waters for launch economic, human rights and arms control
Copies of such filing also will be under the Sea Launch program or to Russia considerations.
available for inspection and copying at and Kazakhstan for launch. This notification More detailed information is contained in
the principal office of the Exchange. All is for the export of the satellites only. the formal certification which, though
comments received will be posted Transfer of ownership to a U.S. company will unclassified, contains business information
be made once the satellites are in orbit. submitted to the Department of State by the
without change; the Commission does applicant, publication of which could cause
The United States Government is prepared
not edit personal identifying to license the export of these items having competitive harm to the United States firm
information from submissions. You taken into account political, military, concerned.
should submit only information that economic, human rights and arms control Sincerely,
you wish to make available publicly. All considerations. Jeffrey T. Bergner,
submissions should refer to File More detailed information is contained in Assistant Secretary Legislative Affairs.
Number SR–NYSEArca–2008–09 and the formal certification which, though Enclosure: Transmittal No. DDTC 082–07.
should be submitted on or before May unclassified, contains business information November 15, 2007.
6, 2008. submitted to the Department of State by the Hon. Nancy Pelosi, Speaker of the House of
applicant, publication of which could cause Representatives.
For the Commission, by the Division of competitive harm to the United States firm Dear Madam Speaker: Pursuant to Section
Trading and Markets, pursuant to delegated concerned. 36(d) of the Arms Export Control Act, I am
authority.24 Sincerely, transmitting, herewith, certification of a
Florence E. Harmon, Jeffrey T. Bergner, proposed manufacturing license agreement
Deputy Secretary. Assistant Secretary Legislative Affairs. for the manufacture of significant military
Enclosure: Transmittal No. DDTC 022–07. equipment abroad in the amount of
[FR Doc. E8–7934 Filed 4–14–08; 8:45 am]
November 13, 2007. $3,695,000.
BILLING CODE 8011–01–P
Hon. Nancy Pelosi, Speaker of the House of The transaction contained in the attached
Representatives. certification involves the export of technical
Dear Madam Speaker: Pursuant to Section data, assistance and manufacturing know-
DEPARTMENT OF STATE 36(c) of the Arms Export Control Act, I am how to France for the initial development
transmitting, herewith, certification of a and subsequent manufacture of
[Public Notice 6189] proposed license for the export of defense Complimentary Metal Oxide Semiconductor
articles in the amount of $50,000,000 or (CMOS) Application Specific Integrated
Bureau of Political-Military Affairs: more. Circuits (ASIC). After manufacture, the
Directorate of Defense Trade Controls; The transaction contained in the attached integrated circuits, in wafer form, will be
Notifications to the Congress of certification involves the temporary export of returned to the United States.
Proposed Commercial Export Licenses a commercial communications satellite to The United States Government is prepared
international waters for launch. This to license the export of these items having
SUMMARY: Notice is hereby given that notification is for the export of the satellite taken into account political, military,
the Department of State has forwarded only. Transfer of ownership to a U.S. economic, human rights and arms control
the attached Notifications of Proposed company will be made once the satellite is considerations.
Export Licenses to the Congress on the in orbit. More detailed information is contained in
dates indicated pursuant to sections The United States Government is prepared the formal certification which, though
36(c) and 36(d) and in compliance with to license the export of these items having unclassified, contains business information
section 36(f) of the Arms Export Control taken into account political, military, submitted to the Department of State by the
jlentini on PROD1PC65 with NOTICES

economic, human rights and arms control applicant, publication of which could cause
Act (22 U.S.C. 2776).
considerations. competitive harm to the United States firm
DATES: Effective Date: As shown on each More detailed information is contained in concerned.
of the 53 letters. the formal certification which, though Sincerely,
unclassified, contains business information Jeffrey T. Bergner,
24 17 CFR 200.30–3(a)(12). submitted to the Department of State by the Assistant Secretary Legislative Affairs.

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