

[Federal Register: January 17, 2007 (Volume 72, Number 10)]
[Notices]               
[Page 2057-2058]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr17ja07-93]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55067; File No. SR-NYSE-2006-80]

 
Self-Regulatory Organizations; New York Stock Exchange LLC; Order 
Approving a Proposed Rule Change and Amendment No. 1 Relating to NYSE 
Rule 1300 (Gold Shares) and NYSE Rule 51 (Hours of Business)

January 9, 2007.

I. Introduction

    On October 2, 2006, the New York Stock Exchange LLC (``NYSE'' or 
``Exchange'') filed with the Securities and Exchange Commission 
``Commission''), pursuant to Section 19(b)(1) of the Securities 
Exchange Act of 1934, as amended (``Act'')\1\ and Rule 19b-4 
thereunder,\2\ a proposed rule change to amend NYSE Rule 1300 (Gold 
Shares) and NYSE Rule 51 (Hours for Business) to allow 
streetTRACKS[supreg] Gold Shares (``Gold Shares'') to open for

[[Page 2058]]

trading at 8:20 a.m. On November 6, 2006, the Exchange filed Amendment 
No. 1.\3\ The proposed rule change, as amended, was published for 
comment in the Federal Register on November 28, 2006.\4\ The Commission 
received no comments on the proposal. This order approves the proposed 
rule change, as modified by Amendment No. 1.
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    \1\ 15 U.S.C. 78s(b)(l).
    \2\ 17 CFR 240.19b-4.
    \3\ See Form 19b-4 dated November 6, 2006 (``Amendment No. 1''). 
Amendment No. 1 replaced the original filing in its entirety.
    \4\ See Securities Exchange Act Release No. 54801 (November 21, 
2006), 71 FR 68870 (SR-NYSE-2006-80).
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II. Description of the Proposal

    The Exchange proposed to amend NYSE Rule 1300 (Gold Shares) and 
NYSE Rule 51 (Hours for Business) to allow Gold Shares to open for 
trading at 8:20 a.m.\5\ Gold Shares represent units of fractional 
undivided interest in and ownership of the streetTRACKS[supreg] Gold 
Trust (the ``Trust''). The Trust holds gold bullion and the investment 
objective of the Trust is to reflect the performance of the price of 
gold bullion, less the Trust's expenses.
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    \5\ Trading in Gold Shares has been offered on the Exchange 
since 2004.
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    Except for the new opening time, trading in Gold Shares will 
operate as it does today. The current assigned specialist will continue 
as the assigned specialist and the stock will continue to trade at its 
current post and panel. All Exchange systems will be operative 
beginning at 8:20 a.m. and throughout the trading day including those 
systems that provide audit trail information. The Exchange 
surveillances that currently operate during market hours will be in 
place to coincide with the 8:20 a.m. opening. Further, either a Floor 
Governor or two Floor Officials will be available upon the 8:20 a.m. 
opening. All Exchange Rules will apply upon the open at 8:20 a.m. and 
throughout the trading day.
    The Exchange represented that the updated spot price of gold and 
the Intraday Indicative Value (``IIV'') for Gold Shares would be 
available at 8:20 a.m. on the Trust's Web site 
(http://www.streettracksgoldshares.com). The IIV is calculated by the Trust's 

Sponsor, World Trust Gold Services, LLC. The Exchange's Web site 
(http://www.nyse.com) provides a link to the Trust's Web site. The spot 

price of gold and the IIV on the Trust's Web site are subject to a 5 to 
10 second delay.

III. Discussion and Commission Findings

    After careful consideration, the Commission finds that the proposed 
rule change, as amended, is consistent with the requirements of the Act 
and the rules and regulations thereunder applicable to a national 
securities exchange.\6\ In particular, the Commission finds that the 
proposed rule change is consistent with Section 6(b)(5) of the Act,\7\ 
which requires that an exchange have rules designed, among other 
things, to promote just and equitable principles of trade, to remove 
impediments to and perfect the mechanism of a free and open market and 
a national market system, and, in general, to protect investors and the 
public interest.
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    \6\ In approving this rule change, the Commission notes that it 
has considered the proposed rule's impact on efficiency, 
competition, and capital formation. See 15 U.S.C. 78c(f).
    \7\ 15 U.S.C. 78f(b)(5).
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    The Exchange stated that it proposes to amend its Rules 1300 and 51 
to allow the opening of Gold Shares for trading at 8:20 a.m. in order 
to remain competitive and in light of the fact that interest in 
commodity-based securities has increased. An 8:20 a.m. opening would 
coincide with the opening of COMEX[supreg] trading in gold futures and 
gold options and thus permit trading in Gold Shares to start at the 
same time as other gold-based instruments. The Commission believes that 
an 8:20 a.m. opening would give customers the opportunity to trade an 
equity product based on the price of gold from the time that gold 
futures and options on gold futures begin trading on the COMEX[supreg] 
and would, therefore, provide the Exchange customers with better 
opportunities for exercising their investment choices.

IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\8\ that the proposed rule change (SR-NYSE-2006-80), as modified by 
Amendment No. 1, be, and it hereby is, approved.
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    \8\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
[FR Doc. E7-535 Filed 1-16-07; 8:45 am]

BILLING CODE 8011-01-P
