[Federal Register: June 20, 2008 (Volume 73, Number 120)]
[Notices]
[Page 35185-35187]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr20jn08-107]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-57975; File No. SR-NYSEArca-2008-62]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of a Proposed Rule Change Relating to the
Listing and Trading of Shares of the First Trust ISE Global Wind Energy
Index Fund
June 17, 2008.
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 June 9, 2008, 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.
NYSE Arca filed the proposed rule change as a ``non-controversial''
proposal pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-
4(f)(6) thereunder,\4\ which renders the proposal effective upon filing
with the Commission. 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.
\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
NYSE Arca proposes to list and trade shares (``Shares'') of the
First Trust ISE Global Wind Energy Index Fund (``Fund''). The text of
the proposed rule change is available at the Exchange, the Commission's
Public Reference Room, and http://www.nyse.com.
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 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 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
The Exchange proposes to list and trade the Shares of the Fund
under NYSE Arca Equities Rule 5.2(j)(3), the Exchange's listing
standards for Investment Company Units (``ICUs'').\5\ The Fund seeks
investment results that correspond generally to the price and yield
(before the Fund's fees and expenses) of the ISE Global Wind Energy
Index (``Index'' or ``Underlying Index''). The Index is developed and
owned by the International Securities Exchange, LLC (``ISE''), in
consultation with Standard & Poor's, a division of The McGraw-Hill
Companies, Inc., which calculates and maintains the Index. The Index
provides a benchmark for investors interested in tracking
[[Page 35186]]
public companies throughout the world that are active in the wind
energy industry based on analysis of the products and services offered
by those companies.
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\5\ An Investment Company Unit is a security that represents an
interest in a registered investment company that holds securities
comprising, or otherwise based on or representing an interest in, an
index or portfolio of securities (or holds securities in another
registered investment company that holds securities comprising, or
otherwise based on or representing an interest in, an index or
portfolio of securities). See NYSE Arca Equities Rule 5.2(j)(3)(A).
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The Exchange is submitting this proposed rule change because the
Underlying Index for the Fund does not meet all of the ``generic''
listing requirements of Commentary .01(a)(B) to NYSE Arca Equities Rule
5.2(j)(3) applicable to listing of ICUs based on international or
global indexes. The Underlying Index meets all such requirements except
for those set forth in Commentary .01(a)(B)(2).\6\ Specifically, for
the period December 2007 through May 2008, stocks comprising 86.15% of
the Index weight each had a minimum worldwide monthly trading volume
during each of the last six months of at least 250,000 shares.
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\6\ Commentary .01(a)(B)(2) to Rule 5.2(j)(3) provides that the
component stocks that in the aggregate account for at least 90% of
the weight of the index or portfolio each shall have a minimum
worldwide monthly trading volume during each of the last six months
of at least 250,000 shares.
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The Exchange represents that: (1) Except for Commentary
.01(a)(B)(2) to NYSE Arca Equities Rule 5.2(j)(3), the Shares of the
Fund currently satisfy all of the generic listing standards under NYSE
Arca Equities Rule 5.2(j)(3); (2) the continued listing standards under
NYSE Arca Equities Rules 5.2(j)(3) and 5.5(g)(2) applicable to ICUs
shall apply to the Shares; and (3) the Trust is required to comply with
Commission Rule 10A-3 under the Act \7\ for the initial and continued
listing of the Shares. In addition, the Exchange represents that the
Shares will comply with all other requirements applicable to ICUs
including, but not limited to, requirements relating to the
dissemination of key information such as the Index value and Intraday
Indicative Value, the rules governing the trading of equity securities,
trading hours, trading halts, surveillance, and the Information
Bulletin to ETP Holders, as set forth in prior Commission orders
approving the generic listing rules applicable to the listing and
trading of ICUs.\8\
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\7\ 17 CFR 240.10A-3.
\8\ See, e.g., Securities Exchange Act Release Nos. 55621 (April
12, 2007), 72 FR 19571 (April 18, 2007) (SR-NYSEArca-2006-86) (order
approving generic listing standards for ICUs based on international
or global indexes); 44551 (July 12, 2001), 66 FR 37716 (July 19,
2001) (SR-PCX-2001-14) (order approving generic listing standards
for ICUs and Portfolio Depositary Receipts); and 41983 (October 6,
1999), 64 FR 56008 (October 15, 1999) (SR-PCX-98-29) (order
approving rules for listing and trading of ICUs).
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Detailed descriptions of the Fund, the Underlying Index, procedures
for creating and redeeming Shares, transaction fees and expenses,
dividends, distributions, taxes, risks, and reports to be distributed
to beneficial owners of the Shares can be found in the Registration
Statement \9\ or on the Web site for the Fund (http://
www.ftportfolios.com), as applicable.
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\9\ See the First Trust Registration Statement on Form N-1A,
dated May 23, 2008 (File Nos. 333-143964; 811-21944) (``Registration
Statement'').
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2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\10\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\11\ in particular, in that it
is designed to prevent fraudulent and manipulative acts and practices,
to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in facilitating
transactions in securities, and to remove impediments to and perfect
the mechanism of a free and open market and a national market system.
The Exchange believes that the proposed rule change will facilitate the
listing and trading of an additional type of exchange-traded product
that will enhance competition among market participants, to the benefit
of investors and the marketplace.
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\10\ 15 U.S.C. 78f(b).
\11\ 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 states that written comments on the proposed rule
change were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change: (1) Does not
significantly affect the protection of investors or the public
interest; (2) does not impose any significant burden on competition;
and (3) by its terms does not become operative for 30 days after the
date of this filing, or such shorter time as the Commission may
designate if consistent with the protection of investors and the public
interest, the proposed rule change has become effective pursuant to
Section 19(b)(3)(A) of the Act \12\ and Rule 19b-4(f)(6)
thereunder.\13\
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\12\ 15 U.S.C. 78(b)(3)(A).
\13\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to provide the Commission
with 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 business days prior to the date of filing of the
proposed rule change, or such shorter time as designated by the
Commission. The Exchange has fulfilled this requirement.
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A proposed rule change filed under Rule 19b-4(f)(6) normally does
not become operative for 30 days after the date of filing. However,
Rule 19b-4(f)(6)(iii) permits the Commission to designate a shorter
time if such action is consistent with the protection of investors and
the public interest. The Exchange requests that the Commission waive
the 30-day operative delay so that the Exchange can list and trade the
Shares immediately. The Exchange states that the proposed rule change
does not significantly affect the protection of investors or the public
interest and does not impose any significant burden on competition. The
Exchange also believes that the proposal is non-controversial because,
although the Underlying Index fails to meet the requirements set forth
in Commentary .01(a)(B)(2) to NYSE Arca Equities Rule 5.2(j)(3) by a
small amount (3.85%), the Shares currently satisfy all of the other
applicable generic listing standards under NYSE Arca Equities Rule
5.2(j)(3), and will be subject to all of the continued listing
standards under NYSE Arca Equities Rules 5.2(j)(3) and 5.5(g)(2)
applicable to ICUs. Additionally, the Exchange represents that the
Shares will comply with all other requirements applicable to ICUs.\14\
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\14\ See supra note 8 and accompanying text.
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The Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public
interest.\15\ Given that the Shares comply with all of the NYSE Arca
Equities generic listing standards for ICUs (except for narrowly
missing the requirement relating to minimum worldwide monthly trading
volume of the stocks composing 90% of the Index), the listing and
trading of the Shares by NYSE Arca does not appear to present any novel
or significant regulatory issues or impose any significant burden on
competition. For these reasons, the Commission designates the proposed
rule change as operative upon filing.
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\15\ For purposes only of waiving the 30-day operative delay,
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
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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 an e-mail to rule-comments@sec.gov. Please include
File Number SR-NYSEArca-2008-62 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSEArca-2008-62. 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, 100 F Street,
NE., Washington, DC 20549, on official business days between the hours
of 10 a.m. and 3 p.m. Copies of the filing also will 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-2008-62 and should
be submitted on or before July 11, 2008.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
Florence E. Harmon,
Acting Secretary.
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\16\ 17 CFR 200.30-3(a)(12).
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[FR Doc. E8-13996 Filed 6-19-08; 8:45 am]
BILLING CODE 8010-01-P