[Federal Register Volume 79, Number 21 (Friday, January 31, 2014)]
[Notices]
[Page 5512]
[FR Doc No: 2014-02063]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

Agency Information Collection Activities: Requests for Comments;
Clearance of Renewed Approval of Information Collection: NAS Data
Release Request

AGENCY: Federal Aviation Administration (FAA), DOT

ACTION: Notice and request for comments.

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SUMMARY: In accordance with the Paperwork Reduction Act of 1995, FAA
invites public comments about our intention to request the Office of
Management and Budget (OMB) approval to renew an information
collection. The information enables the FAA to evaluate the validity of
the user's request for National Airspace (NAS) data from FAA systems
and equipment.

DATES: Written comments should be submitted by April 1, 2014.

FOR FURTHER INFORMATION CONTACT: Kathy DePaepe at<PHONE_NUMBER>, or by
email at<EMAIL_ADDRESS>
ADDRESSES: Send comments to the FAA at the following address: Ms. Kathy
DePaepe, Room 126B, Federal Aviation Administration, ASP-110, 6500 S.
MacArthur Blvd., Oklahoma City, OK 73169.

SUPPLEMENTARY INFORMATION:
    OMB Control Number: 2120-0668.
    Title: NAS Data Release Request.
    Form Numbers: FAA Form 1200-5.
    Type of Review: Renewal of an information collection.
    Background: This data collection is the genesis for granting
approval to release filtered NAS data. The information provided sets
the criteria for the FAA Data Release Request Committee (DRRC) to
approve or disapprove individual requests for NAS data. The information
submitted by the requestor determines the requestor's eligibility to
use FAA NAS data. The agency currently uses the collected information
to determine suitability for procuring NAS data for use in various
evaluations.
    Respondents: Approximately 9 data requestors annually.
    Frequency: Information is collected on occasion.
    Estimated Average Burden per Response: 3 hours.
    Estimated Total Annual Burden: 27 hours.
    Public Comments Invited: You are asked to comment on any aspect of
this information collection, including (a) Whether the proposed
collection of information is necessary for FAA's performance; (b) the
accuracy of the estimated burden; (c) ways for FAA to enhance the
quality, utility and clarity of the information collection; and (d)
ways that the burden could be minimized without reducing the quality of
the collected information. The agency will summarize and/or include
your comments in the request for OMB's clearance of this information
collection.

    Issued in Washington, DC, on January 27, 2014.
Albert R. Spence,
FAA Assistant Information Collection Clearance Officer, IT Enterprises
Business Services Division, ASP-110.
[FR Doc. 2014-02063 Filed 1-30-14; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register: September 21, 2006 (Volume 71, Number 183)]
[Notices]
[Page 55248-55257]
[DOCID:fr21se06-90]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54458; File No. SR-NYSE-2006-60]

Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Order Granting Accelerated Approval of Proposed
Rule Change Relating to iShares[supreg] S&P Global Index Funds

September 15, 2006.
    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 September 14, 2006, the New York Stock Exchange LLC (``NYSE'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'' or ``SEC'') the proposed rule changes as described in
Items I and II below, which items have been substantially prepared by
the Exchange. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons, and is
granting accelerated approval to the proposed rule change.
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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 list and trade the following: iShares[supreg]
S&P Global Consumer Discretionary Sector Index

Fund; iShares S&P Global Consumer Staples Sector Index Fund; iShares
S&P Global Industrials Sector Index Fund; iShares S&P Global Utilities
Sector Index Fund; iShares S&P Global Materials Sector Index Fund
(collectively, the Funds'').\3\ The Funds are exchange-traded funds,
which are a type of Investment Company Unit (``ICU'').
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    \3\ iShares is a registered trademark of Barclays Global
Investors, N.A.
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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 III 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 has adopted listing standards applicable to Investment
Company Units (``ICUs'') that it states are consistent with the listing
criteria currently used by other national securities exchanges, and
trading standards pursuant to which the Exchange may either list and
trade ICUs or trade such ICUs on the Exchange on an unlisted trading
privileges (``UTP'') basis.\4\
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    \4\ In 1996, the Commission approved Section 703.16 of the
Listed Company Manual, which sets forth the rules related to the
listing of ICUs. Securities Exchange Act Release No. 36923 (March 5,
1996), 61 FR 10410 (March 13, 1996).
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    The Exchange now proposes to list and trade under Section 703.16 of
the NYSE Listed Company Manual (``Manual'') and NYSE Rule 1100 et seq.
shares of the following, each a series of the iShares Trust (the
``Trust''): \5\ (1) iShares S&P Global Consumer Discretionary Sector
Index Fund; (2) iShares S&P Global Consumer Staples Sector Index Fund;
(3) iShares S&P Global Industrials Sector Index Fund; (4) iShares S&P
Global Utilities Sector Index Fund; and (5) iShares S&P Global
Materials Sector Index Fund. Because the Funds invest in non-U.S.
securities not listed on a national securities exchange or the Nasdaq
Stock Market, the Funds do not meet the ``generic'' listing
requirements of Section 703.16 of the Manual applicable to listing of
ICUs (permitting listing in reliance upon Rule 19b-4(e) \6\ under the
Act and cannot be listed without a filing pursuant to Rule 19b-4 under
the Act). Therefore, to list the Funds (or trade pursuant to UTP), the
Exchange must file, and obtain Commission approval of, a proposed rule
change pursuant to Rule 19b-4 under the Act.\7\
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    \5\ The Trust is registered under the Investment Company Act of
1940 (15 U.S.C. 80a), (the ``Investment Company Act''). On April 15,
2005, the Trust filed with the Commission a Registration Statement
for the Funds on Form N-1A under the Securities Act of 1933 (15
U.S.C. 77a), and under the Investment Company Act relating to the
Funds (File Nos. 333-92935 and 811-09729) (as amended, the
``Registration Statement'').
    \6\ 17 CFR 240.19b-4(e).
    \7\ 17 CFR 240.19b-4.
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    As set forth in detail below, the Funds will hold certain
securities (``Component Securities'') selected to correspond generally
to the performance of the following indexes, (``Underlying Indexes''),
respectively: (1) S&P Global Consumer Discretionary Index; (2) S&P
Global Consumer Staples Index; (3) S&P Global Industrials Index; (4)
S&P Global Utilities Index; and (5) S&P Global Materials Index.
    Each Fund intends to qualify as a ``regulated investment company''
(a ``RIC'') under the Internal Revenue Code (the ``Code''). Barclays
Global Fund Advisors (the ``Advisor'' or ``BGFA'') is the investment
advisor to the Funds. The Advisor is registered under the Investment
Advisers Act of 1940.\8\ The Advisor is the wholly owned subsidiary of
Barclays Global Investors, N.A. (``BGI''), a national banking
association. BGI is an indirect subsidiary of Barclays Bank PLC of the
United Kingdom. SEI Investments Distribution Co. (``SEI'' or
``Distributor''), a Pennsylvania corporation and broker-dealer
registered under the Act, is the principal underwriter and distributor
of Creation Unit Aggregations of iShares. The Distributor is not
affiliated with the Exchange or the Advisor. The Trust has appointed
Investors Bank & Trust Co. (``IBT'') to act as administrator
(``Administrator''), custodian, fund accountant, transfer agent, and
dividend disbursing agent for the Funds. The Exchange expects that
performance of the Administrator's duties and obligations will be
conducted within the provisions of the Investment Company Act \9\ and
the rules thereunder. There is no affiliation between the Administrator
and the Trust, the Advisor, or the Distributor.
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    \8\ 15 U.S.C. 80b-1.
    \9\ 15 U.S.C. 80a-1.
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Operation of the Funds.\10\
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    \10\ The Exchange states that the information provided herein is
based on information included in the Registration Statement;
however, the Commission notes that its approval of the listing and
trading of these ICUs is subject to the continued operation of the
Funds and their related Indexes as described herein by the Exchange.
The Exchange also states that while the Advisor would manage the
Funds, the Funds' Board of Directors would have overall
responsibility for the Funds' operations. The composition of the
Board is, and would be, in compliance with the requirements of
Section 10 of the Investment Company Act. The Funds are subject to
and must comply with Section 303A.06 of the Manual, which requires
that the Funds have an audit committee that complies with SEC Rule
10A-3, 17 CFR 240.10A-3.
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    The investment objective of the Funds will be to provide investment
results that correspond generally to the price and yield performance of
the Underlying Indexes. In seeking to achieve their investment
objective, the Funds will utilize ``passive'' indexing investment
strategies. The Funds may fully replicate their respective Underlying
Index, but currently intend to use a ``representative sampling''
strategy to track the applicable Underlying Index. A Fund utilizing a
representative sampling strategy generally will hold a basket of the
Component Securities of its Underlying Index, but it may not hold all
of the Component Securities of its Underlying Index.
    Each Fund will invest at least 90% of its assets in the securities
of its Underlying Index or in American Depositary Receipts (``ADRs''),
Global Depositary Receipts (``GDRs''), or European Depositary Receipts
(``EDRs'') (collectively ``Depositary Receipts'') representing
securities in the Underlying Index. A Fund may invest the remainder of
its assets in securities not included in its Underlying Index, but
which BGFA believes will help the Fund track its Underlying Index. For
example, a Fund may invest in securities not included in its Underlying
Index in order to reflect various corporate actions (such as mergers)
and other changes in its Underlying Index (such as reconstitutions,
additions and deletions). A Fund also may invest its other assets in
futures contracts, options on futures contracts, options, and swaps
related to its Underlying Index, as well as cash and cash equivalents,
including shares of money market funds affiliated with BGFA.
    From time to time, adjustments may be made in the portfolio of the
Funds in accordance with changes in the composition of the Underlying
Indexes or to maintain compliance with requirements applicable to a RIC
under

the Code.\11\ For example, if at the end of a calendar quarter a Fund
would not comply with the RIC diversification tests, the Advisor would
make adjustments to the portfolio to ensure continued RIC status.
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    \11\ In order for the Funds to qualify for tax treatment as a
RIC, they must meet several requirements under the Code. Among these
is a requirement that, at the close of each quarter of the Funds'
taxable year, (1) at least 50% of the market value of the Funds'
total assets must be represented by cash items, U.S. government
securities, securities of other RICs and other securities, with such
other securities limited for the purpose of this calculation with
respect to any one issuer to an amount not greater than 5% of the
value of the Funds' assets and not greater than 10% of the
outstanding voting securities of such issuer; and (2) not more than
25% of the value of their total assets may be invested in securities
of any one issuer, or two or more issuers that are controlled by the
Funds (within the meaning of Section 851(b)(4)(B) of the Code) and
that are engaged in the same or similar trades or business (other
than U.S. government securities of other RICs).
    Compliance with the above referenced RIC asset diversification
requirements are monitored by the Advisor and any necessary
adjustments to portfolio issuer weights will be made on a quarterly
basis or as necessary to ensure compliance with RIC requirements.
When an iShares Fund's Underlying Index itself is not RIC compliant,
the Advisor generally employs a representative sampling indexing
strategy (as described in the Funds' prospectus) in order to achieve
the Fund's investment objective. The Funds' prospectus also gives
the Funds additional flexibility to comply with the requirements of
the Code and other regulatory requirements and to manage future
corporate actions and index changes in smaller markets by investing
a percentage of fund assets in securities that are not included in
the Fund's Underlying Index or in ADRs and GDRs representing such
securities.
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    To the extent the Funds invest in ADRs, they will be listed on a
national securities exchange or Nasdaq, and to the extent the Funds
invest in other Depositary Receipts, they will be listed on a foreign
exchange. The Funds will not invest in any unlisted Depositary Receipts
or any listed Depositary Receipts that the Advisor deems to be illiquid
or for which pricing information is not readily available. In addition,
all Depositary Receipts must be sponsored (with the exception of
certain pre-1984 ADRs that are listed and unsponsored because they are
grandfathered).
    Each Fund will not concentrate its investments (i.e., hold 25% or
more of its total assets in the stocks of a particular industry or
group of industries), except that a Fund will concentrate to
approximately the same extent that its Underlying Index concentrates in
the stocks of such particular industry or group of industries. In such
case, a Fund could hold 25% or more of its total assets in the stocks
of such industry or group of industries. For purposes of this
limitation, securities of the U.S. Government (including its agencies
and instrumentalities), repurchase agreements collateralized by U.S.
Government securities, and securities or state or municipal governments
and their political subdivisions are not considered to be issued by
members of any industry.
    The Exchange believes that these requirements and policies prevent
the Funds from being excessively weighted in any single security or
small group of securities and significantly reduce concerns that
trading in the Funds could become a surrogate for trading in
unregistered securities.
Description of the Index Methodology
    Each of the Indexes is a subset of the Standard & Poor's Global
1200 Index and thus contains the securities of both domestic and
international companies as Index components. The Indexes are free float
adjusted and market capitalization weighted. The Standard & Poor's
Index Committee (which does not include employees of broker-dealers or
their affiliates) is responsible for the overall management of these
S&P Indices.
    Selection Criteria for Domestic Components. Companies (i.e., the
``Components'') selected for the investments represent a broad range of
industry segments within the U.S. economy. The starting universe, all
publicly traded U.S. companies (i.e., companies listed and traded on a
national securities exchange or the Nasdaq Stock Market), is screened
to eliminate ADRs, mutual funds, limited partnerships and royalty
trusts. The following criteria are then analyzed to determine a
company's eligibility for inclusion in the investments: (1) Ownership
of a company's outstanding common shares, in order to screen out
closely held companies; (2) trading volume of a company's stock, in
order to ensure ample liquidity and efficient share pricing; and (3)
the financial and operating condition of a company.
    Selection Criteria for International Components.\12\ With respect
to non-U.S. components of the Underlying Indexes, the eligible universe
of Index components that are considered for inclusion are from the
following S&P Indexes: (1) The S&P/Toronto Stock Exchange (``TSX'') 60
Index, which represents the liquid, large-cap stocks of the publicly
listed companies in the Canadian equities market; (2) the S&P Tokyo
Stock Price (``TOPIX'') 150 Index, which represents the liquid, large-
cap stocks of the publicly listed companies in the Japanese equities
market; (3) the S&P/ Australia Stock Exchange (``ASX'') 50 Index, which
represents the liquid, large-cap stocks in the Australian equities
market; (4) the S&P Asia 50 Index, which represents the liquid, large-
cap stocks of four major equities markets in Asia (Hong Kong, Korea,
Taiwan and Singapore); (5) the S&P Latin America 40 Index, which
represents the liquid, large-cap stocks from major sectors of the
Mexico, Brazil, Argentina and Chile equity markets; and (6) the S&P
Europe 350 Index, which represents the liquid, large-cap stocks of the
publicly listed companies in the region, covering approximately 70% of
the region's market capitalization and spanning 17 exchanges. All
stocks included in these S&P Indexes are in the S&P Global 1200
Index.\13\
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    \12\ S&P determines a stock's domicile based on a number of
criteria, including the headquarters of the issuer, its
registration, its stock listing, its place of operations, the
residence of the senior officers, and other criteria. Each region's
Index Committee reviews all criteria before deciding on the domicile
of a stock. Telephone conversation between Michael Cavalier,
Associate General Counsel, NYSE, and Florence Harmon, Senior Special
Counsel, Division of Market Regulation, Commission, on September 15,
2006 (``September 15 Telephone Conference'').
    \13\ September 15 Telephone Conference.
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    Where there were multiple classes of a particular equity, all
classes were deemed eligible if they met the criteria for size,
liquidity and sector representation. The specific securities are then
screened for industry sector classification; thus, the eligible
securities are ranked according to Global Industry Classification
Standards (``GICS''). Then, the Index components, now determined, are
weighted on the basis of S&P's free float, market capitalization
methodology. Generally, S&P observes a prospective constituent's
liquidity over a period of at least 6 months before consideration for
inclusion. However, it is recognized that there may be extraordinary
situations when companies should be added immediately (e.g., certain
privatizations). When a particular company dominates its home market,
it may be excluded from the Index if analysis of the sectors reveals
that its securities are not as liquid as those of similar companies in
other countries. The International Index components may include ADRs
and GDRs.
    Issue Changes. General oversight responsibility for the S&P
Indices, including overall policy guidelines and methodology, is
handled by the S&P Global Index Committee (which does not include
employees of broker-dealers or their affiliates). Maintenance of
component investments, including additions and deletions to these
investments, is the responsibility of separate regional index
committees

composed of S&P staff specialized in the various regional equity
markets and, in some cases with the assistance of local stock
exchanges. Public announcements of index changes as the result of
committee decisions will generally be made two business days in advance
of the anticipate effective date whenever possible, although for
exceptional corporate events announcements may be made earlier.
    Index Maintenance. Maintaining the S&P Indices includes monitoring
and completing the adjustments for company additions and deletions,
share changes, stock splits, stock dividends, and stock price
adjustments due to restructuring and spin-offs. Share changes of less
than 5% are only updated on a quarterly basis on the Friday near the
end of the calendar quarter.
    A company will be removed from the S&P Indices as a result of
mergers/acquisitions, bankruptcy, restructuring, or if it is no longer
representative of its industry group. A company is removed from the
relevant Index as close as possible to the actual date on which the
event occurred. A company can be removed from an Index because it no
longer meets current criteria for inclusion and/or is no longer
representative of its industry group. All replacement companies are
selected based on the above component section criteria.
    When calculating index weights, individual constituents' shares
held by governments, corporations, strategic partners, or other control
groups are excluded from the company's shares outstanding. Shares owned
by other companies are also excluded regardless of whether they are
index constituents.
    In countries with regulated environments, where a foreign
investment limit exists at the sector or company level, the
constituent's weight will reflect either the foreign investment limit
or the percentage float, whichever is the more restrictive.
    Once a year, the float adjustments will be reviewed and potentially
changed based on such review. Each company's financial statements will
be used to update the major shareholders' ownership for the float
adjustments calculation, as the Indexes are free float adjusted, market
capitalization weighted for each company's shares. However, during the
course of the year, S&P also monitors each company's Investable Weight
Factor (IWF), which is S&P's term for the mathematical float factor
used to calculate the float adjustment. If a change in the IWF is
caused by a major corporate action (i.e., privatization, merger,
takeover, or share offering) and the change is equal to or greater than
5%, a float adjustment will be implemented as soon as reasonably
possible.
    Changes in the number of shares outstanding driven by corporate
events such as stock dividends, splits, and rights issues will be
adjusted on the ex-date. Share changes of 5% or greater are implemented
when they occur. All share changes of less than 5% are updated on a
quarterly basis (third Friday of March, June, September, and December
or at the close of the expiration of futures contracts). Implementation
of new additions, deletions, and changes to the float adjustment, due
to corporate actions, will be made available at the close of the third
Friday in March, June, September and December. Generally, index changes
due to rebalancing are announced two days before the effective date by
way of a news release posted on http://www.spglobal.com.

    The S&P Indices are calculated continuously and are available from
major data vendors. A current list of the Index components is attached
as Exhibit 3 to the NYSE's filing.
Index Descriptions
    The S&P Global Consumer Discretionary Index measures the
performance of companies that Standard & Poor's deems to be part of the
consumer discretionary sector of the economy and that Standard & Poor's
believes are important to global markets. Component companies include
manufacturing and service companies. As of the close of business on
January 31, 2006, the Index was comprised of stocks of companies in the
following countries: Australia, Belgium, Canada, Chile, France,
Germany, Hong Kong, Italy, Japan, Korea, Mexico, Netherlands,
Singapore, Spain, Sweden, Switzerland, United Kingdom, and the United
States.
    The S&P Global Consumer Staples Index measures the performance of
companies that Standard & Poor's deems to be part of the consumer
staples sector of the economy and that Standard & Poor's believes are
important to global markets. Component companies include manufacturers
and distributors of food, producers of non-durable household goods, and
food and drug retailing companies. As of the close of business on
January 31, 2006, the Index was comprised of stocks of companies in the
following countries: Australia, Belgium, Brazil, Canada, Chile,
Germany, Japan, Korea, Mexico, Netherlands, Norway, Spain, Sweden,
Switzerland, United Kingdom, and the United States.
    The S&P Global Industrials Index measures the performance of
companies that Standard & Poor's deems to be part of the industrials
sector of the economy and that Standard & Poor's believes are important
to global markets. Component companies include manufacturers and
distributors of capital goods, providers of commercial services and
supplies, and transportation service providers. As of the close of
business on January 31, 2006, the Index was comprised of stocks of
companies in the following countries: Australia, Brazil, Canada, Chile,
Denmark, France, Germany, Hong Kong, Ireland, Italy, Japan, Korea,
Mexico, Netherlands, Norway, Portugal, Singapore, Spain, Sweden,
Switzerland, United Kingdom and the United States.
    The S&P Global Utilities Index measures the performance of
companies that Standard & Poor's deems to be part of the Utilities
sector of the economy and that Standard & Poor's believes are important
to global markets. Component companies include providers of electric,
gas or water utilities, or companies that operate as independent
producers and/or distributors of power. As of the close of business on
January 31, 2006, the Index was comprised of stocks of companies in the
following countries: Australia, Brazil, Canada, Chile, Finland, France,
Germany, Hong Kong, Italy, Japan, Portugal, Spain, United Kingdom, and
the United States.
    The S&P Global Materials Index measures the performance of
companies that Standard & Poor's deems to be part of the materials
sector of the economy and that Standard & Poor's believes are important
to global markets. Component companies include those companies engaged
in a wide variety of commodity-related manufacturing. As of the close
of business on January 31, 2006, the Index was comprised of stocks of
companies in the following countries: Australia, Belgium, Brazil,
Canada, Chile, Finland, France, Germany, Ireland, Japan, Korea,
Luxembourg, Mexico, Netherlands, Portugal, Spain, Sweden, Switzerland,
Taiwan, United Kingdom, and the United States.
    As of May 31, 2006, the iShares S&P Global Consumer Discretionary
Sector Index's top three holdings were Toyota Motor Corp., Home Depot,
Time Warner Inc.; the Index's top three industries were Consumer
Discretionary and Index components had a total market capitalization of
approximately $2.8 trillion. The average total market capitalization
was approximately $14.6 billion. The 10 largest constituents
represented approximately 28.4% of the Index weight. The five highest
weighted stocks, which represented 18.2% of the Index weight, had an
average daily

trading volume in excess of 66.1 million shares during the period April
1 through May 31, 2006. 99.98% of the component stocks traded at least
250,000 shares monthly from December 2005 through May 2006.
    As of May 31, 2006, the iShares S&P Global Consumer Staples Sector
Index's top three holdings were Procter & Gamble, Altria Group, Inc.,
Wal-Mart Stores; the Index's top three industries were Consumer Staples
and Index components had a total market capitalization of approximately
$2.3 trillion. The average total market capitalization was
approximately $23.5 billion. The 10 largest constituents represented
approximately 48.3% of the Index weight. The five highest weighted
stocks, which represented 34.6% of the Index weight, had an average
daily trading volume in excess of 32.3 million shares during the period
April 1 through May 31, 2006. 99.6% of the component stocks traded at
least 250,000 shares monthly from December 2005 through May 2006.
    As of May 31, 2006, the iShares S&P Global Industrials Sector
Index's top three holdings were General Electric, United Parcel
Service, Siemens AG; the Index's top three industries were Industrials
and Index components had a total market capitalization of approximately
$2.7 trillion. The average total market capitalization was
approximately $15.3 billion. The 10 largest constituents represented
approximately 37.1% of the Index weight. The five highest weighted
stocks, which represented 27.2% of the Index weight, had an average
daily trading volume in excess of 38.6 million shares during the period
April 1 through May 31, 2006. 99.65% of the component stocks traded at
least 250,000 shares monthly from December 2005 through May 2006.
    As of May 31, 2006, the iShares S&P Global Materials Sector Index's
top three holdings were BHP Billiton Limited, Anglo American, Rio
Tinto; the Index's top three industries were Materials and Index
components had a total market capitalization of approximately $1.6
trillion. The average total market capitalization was approximately
$12.9 billion. The 10 largest constituents represented approximately
30.7% of the Index weight. The five highest weighted stocks, which
represented 19.5% of the Index weight, had an average daily trading
volume in excess of 66.5 million shares during the period April 1
through May 31, 2006. 99.31% of the component stocks traded at least
250,000 shares monthly from December 2005 through May 2006.
    As of May 31, 2006, the iShares S&P Global Utilities Sector Index's
top three holdings were E.On AG, Suez SA, RWE AG; the Index's top three
industries were Utilities and Index components had a total market
capitalization of approximately $1.2 trillion. The average total market
capitalization was approximately $16.9 billion. The 10 largest
constituents represented approximately 41.5% of the Index weight. The
five highest weighted stocks, which represented 25.0% of the Index
weight, had an average daily trading volume in excess of 47.8 million
shares during the period April 1 through May 31, 2006. 100% of the
component stocks traded at least 250,000 shares monthly from December
2005 through May 2006.
    Additional information regarding the Funds' holdings is available
at http://www.ishares.com.

Determination of Net Asset Value
    IBT calculates the NAV for each Fund generally once daily Monday
through Friday generally as of the regularly scheduled close of
business of the NYSE (normally 4 p.m. Eastern time) on each day that
the NYSE is open for trading, based on prices at the time of closing,
provided that (a) any assets or liabilities denominated in currencies
other than the U.S. dollar shall be translated into U.S. dollars at the
prevailing market rates on the date of valuation as quoted by one or
more major banks or dealers that makes a two-way market in such
currencies (or a major market data service provider based on quotations
received from such banks or dealers); and (b) U.S. fixed-income assets
may be valued as of the announced closing time for trading in fixed-
income instruments on any day that the Bond Market Association
announces an early closing time. The NAV of each Fund is calculated by
dividing the value of the net assets of such Fund (i.e., the value of
its total assets less total liabilities) by the total number of
outstanding shares of the Fund, generally rounded to the nearest cent.
In calculating a Fund's NAV, a Fund's investments are generally valued
using market valuations. In the event that current market valuations
are not readily available or such valuations do not reflect current
market values, the affected investments will be valued using fair value
pricing pursuant to the pricing policy and procedures approved by the
Board of Trustees. The frequency with which a Fund's investments are
valued using fair value pricing is primarily a function of the types of
securities and other assets in which the Fund invests pursuant to its
investment objective, strategies and limitations.
    According to the Funds' prospectus, valuing the Fund's investments
using fair value pricing will result in using prices for those
investments that may differ from current market prices. Accordingly,
fair value pricing could result in a difference between the prices used
to calculate the Fund's net asset value and the prices used by the
Fund's benchmark index, which, in turn, could result in a difference
between the Fund's performance and the performance of the Fund's
benchmark index.
    Because foreign markets may be open on different days than the days
during which a shareholder may purchase the Fund's shares, the value of
the Fund's investments may change on days when shareholders are not
able to purchase the Fund's shares.
    The value of assets denominated in foreign currencies is converted
into U.S. dollars using exchange rates deemed appropriate by BGFA as
investment advisor.\14\
---------------------------------------------------------------------------

    \14\ The Fund utilizes foreign exchange rates of major market
data vendors, such as WM/Reuters. September 15 Telephone Conference.
---------------------------------------------------------------------------

Issuance of Creation Unit Aggregations
    In General. Shares of the Funds (the ``iShares'') will be issued on
a continuous offering basis in groups of iShares, or multiples thereof.
These ``groups'' of shares are called ``Creation Unit Aggregations.''
The Funds will issue and redeem iShares only in Creation Unit
Aggregations of 50,000 iShares.\15\
---------------------------------------------------------------------------

    \15\ Each Creation Unit Aggregation will have an estimated
initial value of approximately $2,500,000.
---------------------------------------------------------------------------

    As with other open-end investment companies, iShares will be issued
at the net asset value (``NAV'') per share next determined after an
order in proper form is received. The anticipated price at which the
iShares will initially trade is approximately $50.
    The NAV per share of the Funds is determined as of the close of the
regular trading session on the Exchange on each day that the Exchange
is open. The Trust sells Creation Unit Aggregations of the Funds only
on business days at the next determined NAV of the Fund. Creation Unit
Aggregations generally will be issued by the Funds in exchange for the
in-kind deposit of equity securities designated by the Advisor to
correspond generally to the price and yield performance of the Fund's
Underlying Index (the ``Deposit Securities'') and a specified cash
payment. Creation Unit Aggregations generally will be redeemed by the
Fund in exchange for portfolio securities of

the Fund (``Fund Securities'') and a specified cash payment. Fund
Securities received on redemption may not be identical to Deposit
Securities deposited in connection with creations of Creation Unit
Aggregations for the same day.
    All orders to purchase iShares in Creation Unit Aggregations must
be placed through an Authorized Participant. An Authorized Participant
must be either a ``Participating Party,'' i.e., a broker-dealer or
other participant in the clearing process through the National
Securities Clearing Corporation (``NSCC'') Continuous Net Settlement
System (the ``Clearing Process''), a clearing agency that is registered
with the SEC, or a Depository Trust Company (``DTC'') participant, and
in each case, must enter into a Participant Agreement. The Funds impose
a transaction fee in connection with the issuance and redemption of
iShares to offset transfer and other transaction costs. The transaction
fee in connection with the issuance and redemption of Creation Unit
Aggregations of the Funds are estimated to be approximately between
$2,200 and $8,800.
    In-Kind Deposit of Portfolio Securities. Payment for Creation Unit
Aggregations will be made by the purchasers generally by an in-kind
deposit with the applicable Fund of the Deposit Securities together
with an amount of cash (the ``Balancing Amount'') specified by the
Advisor in the manner described below. The Balancing Amount is an
amount equal to the difference between (1) the NAV (per Creation Unit
Aggregation) of the Fund and (2) the total aggregate market value (per
Creation Unit Aggregation) of the Deposit Securities (such value
referred to herein as the ``Deposit Amount''). The Balancing Amount
serves the function of compensating for differences, if any, between
the NAV per Creation Unit Aggregation and that of the Deposit Amount.
The deposit of the requisite Deposit Securities and the Balancing
Amount are collectively referred to herein as a ``Fund Deposit.'' The
Advisor will make available to the market through the NSCC on each
business day, prior to the opening of trading on the Exchange
(currently 9:30 a.m. Eastern Time), the list of the names and the
required number of shares of each Deposit Security included in the
current Fund Deposit (based on information at the end of the previous
business day) for each Fund. The Fund Deposit will be applicable to the
relevant Fund (subject to any adjustments to the Balancing Amount, as
described below) in order to effect purchases of Creation Unit
Aggregations of such Fund until such time as the next-announced Fund
Deposit composition is made available.
    The identity and number of shares of the Deposit Securities
required for the Fund Deposit for each Fund will change from time to
time. The composition of the Deposit Securities may change in response
to adjustments to the weighting or composition of the Component
Securities in the Underlying Index. In addition, the Trust reserves the
right to permit or require the substitution of an amount of cash--i.e.,
a ``cash in lieu'' amount--to be added to the Balancing Amount to
replace any Deposit Security that may not be available in sufficient
quantity for delivery or that may not otherwise be eligible for
transfer. The Trust also reserves the right to permit or require a
``cash in lieu'' amount where the delivery of the Deposit Security by
the Authorized Participant would be restricted under the securities
laws or where the delivery of the Deposit Security to the Authorized
Participant would result in the disposition of the Deposit Security by
the Authorized Participant becoming restricted under the securities
laws, or in certain other situations. The adjustments described above
will reflect changes known to the Advisor on the date of announcement
to be in effect by the time of delivery of the Fund Deposit, in the
composition of the applicable Underlying Index or resulting from
certain corporate actions.
Redemption of iShares
    Creation Unit Aggregations of the Funds will be redeemable at the
NAV next determined after receipt of a request for redemption. Creation
Unit Aggregations of the Funds generally will be redeemed in-kind,
together with a balancing cash payment (although, as described below,
Creation Unit Aggregations may sometimes be redeemed for cash). The
value of the Funds' redemption payments on a Creation Unit Aggregation
basis will equal the NAV per the appropriate number of iShares of the
Funds. Owners of iShares may sell their iShares in the secondary market
but must accumulate enough iShares to constitute a Creation Unit
Aggregation in order to redeem through the Funds. Redemption orders
must be placed by or through an Authorized Participant.
    Creation Unit Aggregations of the Funds generally will be
redeemable on any business day in exchange for applicable Fund
Securities and the Cash Redemption Payment (defined below) in effect on
the date a request for redemption is made. The Advisor will publish
daily through NSCC the list of securities which a creator of Creation
Unit Aggregations must deliver to the Fund (the ``Creation List'') and
which a redeemer will receive from the Funds (the ``Redemption List'').
The Creation List is identical to the list of the names and the
required numbers of shares of each Deposit Security included in the
current Fund Deposit.
    In addition, just as the Balancing Amount is delivered by the
purchaser of Creation Unit Aggregations to the Funds, the Trust will
also deliver to the redeeming beneficial owner in cash the ``Cash
Redemption Payment.'' The Cash Redemption Payment on any given business
day will be an amount calculated in the same manner as that for the
Balancing Amount, although the actual amounts may differ if the Fund
Securities received upon redemption are not identical to the Deposit
Securities applicable for creations on the same day. To the extent that
the Fund Securities have a value greater than the NAV of iShares being
redeemed, a cash payment equal to the differential is required to be
paid by the redeeming beneficial owner to the applicable Fund. The
Trust may also make redemptions in cash in lieu of transferring one or
more Fund Securities to a redeemer if the Trust determines, in its
discretion, that such method is warranted due to unusual circumstances.
An unusual circumstance could arise, for example, when a redeeming
entity is restrained by regulation or policy from transacting in
certain Fund Securities, such as the presence of such Fund Securities
on a redeeming investment banking firm's restricted list.
Availability of Information Regarding iShares and the Underlying Index
    On each business day the list of names and amount of each security
constituting the current Deposit Securities of the Fund Deposit and the
Balancing Amount effective as of the previous business day, per
outstanding share of each Fund, will be made available. An amount per
iShare representing the sum of the estimated Balancing Amount effective
through and including the previous business day, plus the current value
of the Deposit Securities in U.S. dollars, on a per iShare basis (the
``Intra-day Optimized Portfolio Value'' or ``IOPV'') will be calculated
by an independent third party that is a major market data vendor (the
``Value Calculator''), such as Bloomberg L.P., every 15 seconds during
the Exchange's regular trading hours and disseminated every 15 seconds
on the Consolidated Tape.
    The IOPV reflects the current value of the Deposit Securities and
the Balancing Amount. The IOPV also reflects changes

in currency exchange rates between the U.S. dollar and the applicable
home foreign currency.\16\
---------------------------------------------------------------------------

    \16\ The IOPV ticker is available at http://www.ishares.com and Intra-

day IOPV is publicly available utilizing this ticker through various
financial Web sites such as http://finance.yahoo.com.

---------------------------------------------------------------------------

    Since the Funds will utilize a representative sampling strategy,
the IOPV may not reflect the value of all securities included in the
Underlying Indexes. In addition, the IOPV does not necessarily reflect
the precise composition of the current portfolio of securities held by
the Funds at a particular point in time. Therefore, the IOPV on a per
Fund share basis disseminated during the Exchange's trading hours
should not be viewed as a real time update of the NAV of the Funds,
which is calculated only once a day.
    While the IOPV disseminated by the Exchange at 9:30 a.m. is
expected to be generally very close to the most recently calculated
Fund NAV on a per Fund share basis, it is possible that the value of
the portfolio of securities held by each Fund may diverge from the
Deposit Securities values during any trading day. In such case, the
IOPV will not precisely reflect the value of each Fund's portfolio.
However, during the trading day, the IOPV can be expected to closely
approximate the value per Fund share of the portfolio of securities for
each Fund except under unusual circumstances (e.g., in the case of
extensive rebalancing of multiple securities in a Fund at the same time
by the Advisor).
    The Exchange believes that dissemination of the IOPV based on the
Deposit Securities provides additional information regarding the Funds
that is not otherwise available to the public and is useful to
professionals and investors in connection with Fund shares trading on
the Exchange or the creation or redemption of Fund shares.
    There is an overlap in trading hours between the foreign and U.S.
markets with respect to the Funds. Therefore, the Value Calculator will
update the applicable IOPV every 15 seconds to reflect price changes in
the applicable foreign market or markets, and convert such prices into
U.S. dollars based on the currency exchange rate. When the foreign
market or markets are closed but U.S. markets are open, the IOPV will
be updated every 15 seconds to reflect changes in currency exchange
rates after the foreign market closes. The IOPV will also include the
applicable cash component for each Fund.
    In addition, there will be disseminated a value for the Underlying
Indexes once each trading day, based on closing prices in the relevant
exchange market, utilizing the WM/Reuters (or other major market
information vendor) currency exchange rates. In each S&P Index, the
prices used to calculate the S&P Indices are the official exchange
closing prices or those figures accepted as such. S&P reserves the
right to use an alternative pricing source on any given day.
    The NAV for the Fund will be calculated and disseminated daily. The
Funds' NAV will be calculated by IBT. IBT will disseminate the
information to BGI, SEI and others, including the NYSE. The Funds' NAV
will be published in a number of places, including, http://www.iShares.com
 and on the Consolidated Tape. The Advisor for the Funds

has informed the Exchange that the Funds will make the NAV for the
Funds available to all market participants at the same time. If the NAV
is not disseminated to all market participants at the same time, the
Exchange will halt trading in the Shares of the Funds.\17\
    Closing prices of the Funds' Deposit Securities are readily
available from, as applicable, the relevant exchanges, automated
quotation systems, published or other public sources in the relevant
country, or on-line information services such as Bloomberg or Reuters.
The exchange rate information required to convert such information into
U.S. dollars is also readily available in newspapers and other
publications and from a variety of on-line services.
---------------------------------------------------------------------------

    \17\ The Exchange will immediately contact the Commission staff
to discuss measures that may be appropriate under the circumstances.
September 15 Telephone Conference.
---------------------------------------------------------------------------

    In addition, the Web site for the Trust, http://www.iShares.com,

which will be publicly accessible at no charge, will contain the
following information, (1) the prior business day's NAV and the mid-
point of the bid-ask price at the time of calculation of such NAV
(``Bid/Ask Price''), and a calculation of the premium or discount of
such price against such NAV; and (2) data in chart format displaying
the frequency distribution of discounts and premiums of the Bid/Ask
Price against the NAV, within appropriate ranges, for each of the four
previous calendar quarters.
Dividends and Distributions
    Dividends are accrued daily from net investment income and will be
declared and paid to beneficial owners of record at least annually by
the Funds. Distributions of realized securities gains, if any,
generally will be declared and paid once a year, but the Funds may make
distributions on a more frequent basis to comply with the distribution
requirements of the Code and consistent with the Investment Company
Act.
    Dividends and other distributions on iShares of the Funds will be
distributed on a pro rata basis to beneficial owners of such iShares.
Dividend payments will be made through the Depository and the DTC
Participants to beneficial owners then of record with amounts received
from the Fund.
    The Trust currently does not intend to make the DTC book-entry
Dividend Reinvestment Service (the ``Service'') available for use by
beneficial owners for reinvestment of their cash proceeds, but certain
individual brokers may make the Service available to their clients. The
Statement of Additional Information (``SAI'') will inform investors of
this fact and direct interested investors to contact such investor's
broker to ascertain the availability and a description of the Service
through such broker. The SAI will also caution interested beneficial
owners that they should note that each broker may require investors to
adhere to specific procedures and timetables in order to participate in
the Service and such investors should ascertain from their broker such
necessary details. The Funds acquired pursuant to the Service will be
held by the beneficial owners in the same manner and subject to the
same terms and conditions, as for original ownership of the Funds.
    Beneficial owners of the Funds will receive all of the statements,
notices, and reports required under the Investment Company Act and
other applicable laws. They will receive, for example, annual and semi-
annual reports, written statements accompanying dividend payments,
proxy statements, annual notifications detailing the tax status of
distributions, IRS Form 1099-DIVs, etc. Because the Trust's records
reflect ownership of iShares by DTC only, the Trust will make available
applicable statements, notices, and reports to the DTC Participants
who, in turn, will be responsible for distributing them to the
beneficial owners.
Other Issues
    Criteria for Initial and Continued Listing. The Funds are subject
to the criteria for initial and continued listing of Investment Company
Units in Section 703.16 of the Manual. A minimum of two Creation Units
(100,000 iShares) will be required to be outstanding at the start of
trading. This minimum number of shares of each Fund required to be
outstanding at the start of trading will be comparable to requirements
that have

been applied to previously traded series of ICUs.
    Prospectus Delivery. The Commission has granted the Trust an
exemption from certain prospectus delivery requirements under section
24(d) of the Investment Company Act.\18\ Any product description used
in reliance on a section 24(d) exemptive order will comply with all
representations made therein and all conditions thereto. The Exchange,
in an Information Memo to Exchange members and member organizations,
will inform members and member organizations, prior to commencement of
trading, of the prospectus or product description delivery requirements
applicable to the Funds and will refer members and member organizations
to NYSE Rule 1100(b). There is not currently a product description
available for the Funds. The Information Memo will also advise members
and member organizations that delivery of a prospectus to customers in
lieu of a product description would satisfy the requirements of Rule
1100(b).
---------------------------------------------------------------------------

    \18\ See In the Matter of iShares, Inc., et al., Investment
Company Act Release No. 25623 (June 25, 2002).
---------------------------------------------------------------------------

    Information Memo. The Exchange will distribute an Information Memo
to its members in connection with the trading of the Funds. The Memo
will discuss the special characteristics and risks of trading this type
of security. Specifically, the Memo, among other things, will discuss
what the Funds are, how the Funds' shares are created and redeemed, the
requirement that members and member firms deliver a prospectus or
product description to investors purchasing shares of the Funds prior
to or concurrently with the confirmation of a transaction, applicable
Exchange rules, dissemination information, trading information and the
applicability of suitability rules (including Exchange Rule 405). The
Memo will also discuss exemptive, no-action and interpretive relief, if
granted by the Commission from certain rules under the Act.
    Trading Halts. In order to halt the trading of the Funds, the
Exchange may consider, among other things, factors such as the extent
to which trading is not occurring in underlying security(s) and whether
other unusual conditions or circumstances detrimental to the
maintenance of a fair and orderly market are present. In addition,
trading in the Funds' shares is subject to trading halts caused by
extraordinary market volatility pursuant to Exchange Rule 80B. The
Exchange will halt trading in a Fund if the Index Value or IOPV
applicable to such Fund is no longer calculated or disseminated or the
NAV is not disseminated to all market participants at the same
time.\19\
---------------------------------------------------------------------------

    \19\ Under such circumstances, the Exchange would immediately
contact the Commission staff to discuss appropriate measures that
may be appropriate under the circumstances. September 15 Telephone
Conference.
---------------------------------------------------------------------------

    Due Diligence. The Information Memo to members will note, for
example, Exchange responsibilities including that before an Exchange
member, member organization, or employee thereof recommends a
transaction in the Funds, a determination must be made that the
recommendation is in compliance with all applicable Exchange and
Federal rules and regulations, including due diligence obligations
under Exchange Rule 405 (Diligence as to Accounts).
    Purchases and Redemptions in Creation Unit Size. In the Memo
referenced above, members and member organizations will be informed
that procedures for purchases and redemptions of shares of the Funds in
Creation Unit Size are described in the Funds' Prospectus and SAI \20\
and that Funds' shares are not individually redeemable but are
redeemable only in Creation Unit Size aggregations or multiples
thereof.
---------------------------------------------------------------------------

    \20\ See Securities Exchange Act Release Nos. 44990 (October 25,
2001), 66 FR 56869 (November 13, 2001) (SR-Amex-2001-45); 42748 (May
2, 2000), 65 FR 30155 (May 10, 2000) (SR-Amex-98-49); and 36947
(March 8, 1996), 61 FR 10606 (March 14, 1996) (SR-Amex-95-43).
---------------------------------------------------------------------------

    Surveillance. The Exchange will utilize its existing surveillance
procedures applicable to ICUs monitor trading of the shares of the
Funds. Surveillance procedures applicable to trading in the proposed
iShares are comparable to those applicable to other ICUs currently
trading on the Exchange. The Exchange represents that these
surveillance procedures are adequate to properly monitor the trading of
the Funds.\21\ The Exchange's current trading surveillances focus on
detecting securities trading outside their normal patterns. When such
situations are detected, surveillance analysis follows and
investigations are opened, where appropriate, to review the behavior of
all relevant parties for all relevant trading violations. The Exchange
may obtain trading information via the Intermarket Surveillance Group
(``ISG'') from other exchanges who are members or affiliates of the
ISG. For a list of the current members and affiliate members of ISG,
see http://www.isgportal.com.

---------------------------------------------------------------------------

    \21\ The Exchange states that it submitted such surveillance
procedures to the Commission staff in the past. September 15
Telephone Conference.
---------------------------------------------------------------------------

    Hours of Trading/Minimum Price Variation. The Funds will trade on
the Exchange until 4:15 p.m. (Eastern time). The minimum price
variation for quoting will be $.01.
2. Statutory Basis
    NYSE believes that the proposed rule change is consistent with
section 6(b)(5) of the Act \22\ requiring that an exchange have rules
that are designed, among other things, 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.
---------------------------------------------------------------------------

    \22\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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. 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 Exchange 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_ADDRESS>Please include File

Number SR-NYSE-2006-60 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris
Secretary, Securities and Exchange Commission, Station Place, 100 F
Street, NE., Washington, DC 20549-1090.
    All submissions should refer to File Number SR-NYSE-2006-60. 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 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-2006-60 and should be
submitted on or before October 12, 2006.

IV. Commission's Findings and Order Granting Accelerated Approval of
Proposed Rule Change

    The Commission finds that the proposed rule change is consistent
with the requirements of the Act and the rules and regulations
thereunder, applicable to a national securities exchange.\23\ In
particular, the Commission finds that the proposed rule change is
consistent with section 6(b)(5) of the Act \24\ and will promote just
and equitable principles of trade, and facilitate transactions in
securities, and, in general, protect investors and the public interest.
---------------------------------------------------------------------------

    \23\ In approving this proposal, the Commission has considered
its impact on efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
    \24\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Commission believes that the NYSE's proposal should advance the
public interest by providing investors with increased flexibility in
satisfying their investment needs and by allowing them to purchase and
sell Fund shares at negotiated prices throughout the business day that
generally track the price and yield performance of the Underlying
Index.
    Furthermore, the Commission believes that the proposed rule change
raises no issues that have not been previously considered by the
Commission. The Fund is similar in structure and operation to exchange-
traded funds that the Commission has previously approved for listing
and trading on national securities exchanges under section 19(b)(2) of
the Act.\25\ Further, with respect to each of the following issues, the
Commission believes that the listing and trading of the Funds' shares
satisfies established standards.
---------------------------------------------------------------------------

    \25\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------

A. Fund Characteristics

    The Commission believes that the proposed Funds are reasonably
designed to provide investors with an investment vehicle that
substantially reflects in value the performance of the respective
Underlying Indexes and will provide investors with an alternative to
trading a range of securities on an individual basis. Investors will be
able to trade shares in the Fund continuously throughout the business
day in secondary market transactions at negotiated prices. Accordingly,
the proposed Fund will allow investors to: (1) Respond quickly to
market changes through intra-day trading opportunities; (2) engage in
hedging strategies similar to those used by institutional investors;
and (3) reduce transaction costs for trading a portfolio of securities.
    The Commission also notes that the market capitalization and
liquidity of the underlying Indexes' component securities is also a
deterrent to manipulation of the Fund shares. Because each Fund's
Underlying Index is broad-based and well diversified, the Exchange
represents that it does not believe that the Fund will be so highly
concentrated such that it becomes a surrogate for trading unregistered
foreign securities on the Exchange.
    While the Commission believes that these requirements should help
to reduce concerns that the Funds could become a surrogate for trading
in a single or a few unregistered stocks, if the characteristics of the
Funds, or their underlying Indexes, changed materially from the
characteristics described the Exchange,\26\ the Fund would not be in
compliance with the listing and trading standards approved herein, and
the Commission would expect the NYSE to file a proposed rule change
pursuant to Rule 19b-4 of the Act, which must be approved to permit
continued trading of the Funds' shares.
---------------------------------------------------------------------------

    \26\ Substitution of an underlying index or significant
alteration of the index methodology described herein would be a
material change.
---------------------------------------------------------------------------

B. Disclosure

    The Exchange represents that it will circulate an information memo
detailing applicable prospectus and product description delivery
requirements. The memo will also discuss any exemptive, no-action and
interpretive relief granted by the Commission from certain rules under
the Act. The memo also will address NYSE members' responsibility to
deliver a prospectus or product description to all investors (in
accordance with NYSE Rule 1100(b)) and highlight the characteristics of
the Funds. The memo will also remind members of their suitability
obligations, including NYSE Rule 405 (Diligence as to Accounts).
Additionally, for example, the information memo will also inform
members and member organizations that Funds' shares are not
individually redeemable, but are redeemable only in Creation-Unit-size
aggregations or multiples thereof as set forth in the Fund Prospectus
and SAI. The Commission believes that the disclosure included in the
information memo is appropriate and consistent with the Act.

C. Dissemination of Fund Information

    With respect to pricing, once each day, the NAV for the Fund will
be calculated and disseminated by IBT, to various sources, including
the NYSE, and made available on http://www.iShares.com and the

Consolidated Tape. The Exchange represents that the NAV will be made
available to all market participants at the same time; otherwise, the
Exchange will halt trading in the Funds' shares. Also, during the
Exchange's regular trading hours, the IOPV Calculator will determine
and disseminate every 15 seconds the IOPV for each Fund. The IOPV will
reflect price changes in the applicable foreign market or markets and
changes in currency exchange rates. The Exchange also represents that
the value of the underlying Indexes will be calculated and disseminated
at least every 15 seconds during the time the Funds' shares trade on
the Exchange. If the IOPV and underlying Index values are not so
disseminated, the Exchange will halt trading in the Funds' shares.
    The Commission notes that a variety of additional information about
each Fund will be readily available. Information with respect to recent
NAV, shares outstanding, estimated cash amount and total cash amount
per Creation Unit Aggregation will be made available prior to the
opening of the Exchange. In addition, the Web site for the Trust,
http://www.iShares.com, which will be publicly accessible at no charge,

will contain relevant information about the Funds and their shares.
Also, the closing prices of the Fund's Deposit Securities are available
from, as applicable, the relevant exchanges, automated quotation
systems, published or other public sources in the relevant country, or
on-line information services, such as Bloomberg or Reuters. The
exchange rate information required to convert such information into
U.S. dollars is

also readily available in newspapers and other publications and from a
variety of on-line services.
    Based on the representations made in the NYSE proposal, the
Commission believes that pricing and other important information about
the Fund is adequate and consistent with the Act.

D. Listing and Trading

    The Commission finds that adequate rules and procedures exist to
govern the listing and trading of the Funds' shares. Fund shares will
be deemed equity securities subject to NYSE rules governing the trading
of equity securities, including, among others, rules governing trading
halts, responsibilities of the specialist, account opening and customer
suitability requirements, and the election of stop and stop limit
orders. In addition, the Exchange states that iShares are subject to
the criteria for initial and continued listing of ICUs in Section
703.16 of the NYSE Manual.

E. Surveillance

    The Exchange represents that its surveillance procedures are
adequate to properly monitor the trading of the Funds. The Exchange
states that it is able to obtain trading information from ISG from
other exchanges that are members or affiliates of the ISG.

F. Accelerated Approval

    The Commission finds good cause, pursuant to section 19(b)(2) of
the Act,\27\ for approving the proposed rule change prior to the
thirtieth day after the date of publication of notice in the Federal
Register. The Commission notes that the proposal is consistent with the
listing and trading standards in NYSE Rule 703.16 (ICUs), and the
Commission has previously approved similar products based on foreign
indices.\28\ The Funds are substantially identical in structure to
other iShares Funds based on foreign stock indexes, including the
iShares S&P Global 1200 Index Fund, which has an established and active
trading history on the NYSE and other exchanges.\29\ The Commission
does not believe that the proposed rule change, as amended, raises
novel regulatory issues. Consequently, the Commission believes that it
is appropriate to permit investors to benefit from the flexibility
afforded by trading these products as soon as possible.
---------------------------------------------------------------------------

    \27\ 15 U.S.C. 78s(b)(2).
    \28\ See Securities Exchange Act Release Nos. 44990 (October 25,
2001), 66 FR 56869 (November 13, 2001) (SR-Amex-2001-45); 42748 (May
2, 2000), 65 FR 30155 (May 10, 2000) (SR-Amex-98-49); and 36947
(March 8, 1996), 61 FR 10606 (March 14, 1996) (SR-Amex-95-43).
    \29\ See Securities Exchange Act Release No. 52178 (July 29,
2005), 70 FR 46244 (August 9, 2005) (SR-NYSE-2005-41)
---------------------------------------------------------------------------

V. Conclusion

    It is therefore ordered, pursuant to section 19(b)(2) of the Act,
that the proposed rule change (SR-NYSE-2006-60) is hereby approved on
an accelerated basis.\30\
---------------------------------------------------------------------------

    \30\ 15 U.S.C. 78s(b)(2).
    \31\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\31\
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. 06-7896 Filed 9-20-06; 8:45 am]

BILLING CODE 8010-01-P


[Federal Register Volume 79, Number 154 (Monday, August 11, 2014)]
[Rules and Regulations]
[Pages 46695-46697]
[FR Doc No: 2014-18862]

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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 165

[Docket No. USCG-2014-0619]
RIN 1625-AA00

Safety Zone, Elizabeth River; Norfolk, VA

AGENCY: Coast Guard, DHS.

ACTION: Temporary final rule.

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SUMMARY: The Coast Guard is establishing a safety zone on the navigable
waters of the Eastern Branch of the Elizabeth River in Norfolk, VA to
support four Harbor Park Stadium fireworks displays. This action is
intended to restrict vessel traffic movement in the designated area in
order to protect the life and property of the maritime public and
spectators from the hazards associated with fireworks displays.

DATES: This rule is effective from August 11, 2014 through August 30,
2014, and has been effective with actual notice since July 23, 2014. It
has been or will be enforced from 10 p.m. until 10:30 p.m. on August 2,
August 16, August 29, and August 30, 2014.

ADDRESSES: Documents mentioned in this preamble are part of docket
[USCG-2014-0619]. To view documents mentioned in this preamble as being
available in the docket, go to http://www.regulations.gov, type the
docket number in the ``SEARCH'' box and click ``SEARCH.'' Click on Open
Docket Folder on the line associated with this rulemaking. You may also
visit the Docket Management Facility in Room W12-140 on the ground
floor of the Department of Transportation West Building, 1200 New
Jersey Avenue SE., Washington, DC 20590, between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal holidays.

FOR FURTHER INFORMATION CONTACT: If you have questions on this rule,
call or email LCDR Gregory Knoll, Waterways Management Division Chief,
Sector Hampton Roads, Coast Guard; telephone<PHONE_NUMBER>, email
<EMAIL_ADDRESS>If you have questions on viewing or
submitting material to the docket, call Cheryl Collins, Program
Manager, Docket Operations, telephone<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Table of Acronyms

DHS Department of Homeland Security
FR Federal Register
NPRM Notice of Proposed Rulemaking

A. Regulatory History and Information

    The Coast Guard is issuing this temporary final rule without prior
notice and opportunity to comment pursuant to authority under section
4(a) of the Administrative Procedure Act (APA) (5 U.S.C. 553(b)). This
provision authorizes an agency to issue a rule without prior notice and
opportunity to comment when the agency for good cause finds that those
procedures are ``impracticable, unnecessary, or contrary to the public
interest.'' Under 5 U.S.C. 553(b)(B), the Coast Guard finds that good
cause exists for not publishing a notice of proposed rulemaking (NPRM)
with respect to this rule because it is impracticable to provide a full
comment period due to lack of time before the remaining shows planned
for this season. Any delay encountered in this regulation's effective
date to provide for a comment period would be contrary to the public
interest as immediate action is needed to ensure the safety of the
event participants, patrol vessels, spectator craft and other vessels
transiting the event area. The Coast Guard will provide advance
notifications to users of the affected waterways of the safety zone via
marine information broadcasts, local notice to mariners, commercial
radio stations, and area newspapers.

B. Basis and Purpose

    On August 2, August 16, August 29, and August 30, 2014, the Norfolk
Tides Baseball Club will host fireworks displays at Harbor Park Stadium
on the bank of the Eastern Branch of the Elizabeth River in Norfolk,
VA. The fireworks debris fallout area will extend over the navigable
waters of the eastern branch of the Elizabeth River. Due to the need to
protect mariners and spectators from the hazards associated with the
fireworks displays, such as the accidental discharge of fireworks,
dangerous projectiles, and falling hot embers or other debris, vessel
traffic will be temporarily restricted within 210 feet of the fireworks
launch site between positions 36[deg]50'29.8896'' N,
076[deg]16'43.662'' W and 36[deg]50'30.3678'' N, 076[deg]16'39.936'' W.

C. Discussion of the Rule

    The Coast Guard is establishing a safety zone on specified waters
of the Eastern Branch of the Elizabeth River in Norfolk, VA to support
four fireworks displays. The fireworks will be launched from shore in
the vicinity of the Harbor Park Stadium. The safety zone will encompass
all navigable waters within 210 feet of the fireworks launching
location at positions 36[deg]50'29.8896'' N, 076[deg]16'43.662'' W and
36[deg]50'30.3678'' N, 076[deg]16'39.936'' W. This safety zone will be
established and enforced from 10 p.m. until 10:30 p.m. on August 2,
August 16, August 29, and August 30, 2014. Access to the safety zone
will be restricted during the specified dates and times. Except for
individuals responsible for launching the fireworks and vessels
specifically and expressly authorized by the Captain of the Port or his
Representative, no person or vessel may enter or remain in the
regulated area.

D. Regulatory Analyses

    We developed this rule after considering numerous statutes and
executive orders related to rulemaking. Below we summarize our analyses
based on these statutes or executive orders.

1. Regulatory Planning and Review

    This rule is not a significant regulatory action under section 3(f)
of Executive Order 12866, Regulatory Planning and Review, as
supplemented by Executive Order 13563, Improving Regulation and
Regulatory Review, and does not require an assessment of potential
costs and benefits under section 6(a)(3) of Executive Order 12866 or
under section 1 of Executive Order 13563. The Office of Management and
Budget has not reviewed it under those orders. Although this regulation
restricts access to the safety zone, the effect of this rule will not
be significant because: (i) The safety zone will be in effect for a
limited duration; (ii) the zone is of limited size; (iii) mariners may
transit the waters in and around this safety zone at the discretion of
the Captain of the Port or designated representative; and (iv), the
Coast Guard will make notifications via maritime advisories so mariners
can adjust their plans accordingly.

2. Impact on Small Entities

    The Regulatory Flexibility Act of 1980 (RFA), 5 U.S.C. 601-612, as
amended, requires federal agencies to consider the potential impact of
regulations on small entities during rulemaking. The term ``small
entities'' comprises small businesses, not-for-profit organizations
that are independently owned and operated and are not dominant in their
fields, and governmental jurisdictions with populations of less than
50,000. The Coast Guard certifies under 5 U.S.C. 605(b) that this rule
will not have a significant economic impact on a substantial number of
small entities.
    The rule will affect the following entities, some of which might be
small entities: The owners or operators of vessels intending to transit
or anchor in that portion of the eastern branch of the Elizabeth River
from 10 p.m. until 10:30 p.m. on August 2, August 16, August 29, and
August 30, 2014.
    This safety zone will not have a significant economic impact on a
substantial number of small entities for the following reasons: (i) The
safety zone will only be in place for a limited duration; and (ii)
before the enforcement periods of August 2, August 16, August 29, and
August 30, 2014 maritime advisories will be issued allowing mariners to
adjust their plans accordingly.

3. Assistance for Small Entities

    Under section 213(a) of the Small Business Regulatory Enforcement
Fairness Act of 1996 (Pub. L. 104-121), we want to assist small
entities in understanding this rule. If the rule would affect your
small business, organization, or governmental jurisdiction and you have
questions concerning its provisions or options for compliance, please
contact the person listed in the FOR FURTHER INFORMATION CONTACT,
above.
    Small businesses may send comments on the actions of Federal
employees who enforce, or otherwise determine compliance with, Federal
regulations to the Small Business and Agriculture Regulatory
Enforcement Ombudsman and the Regional Small Business Regulatory
Fairness Boards. The Ombudsman evaluates these actions annually and
rates each agency's responsiveness to small business. If you wish to
comment on actions by employees of the Coast Guard, call 1-888-REG-FAIR
(1-888-734-3247). The Coast Guard will not retaliate against small
entities that question or complain about this rule or any policy or
action of the Coast Guard.

4. Collection of Information

    This rule will not call for a new collection of information under
the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520).

5. Federalism

    A rule has implications for federalism under Executive Order 13132,
Federalism, if it has a substantial direct effect on State or local
governments and would either preempt State law or impose a substantial
direct cost of compliance on them. We have analyzed this rule under
that Order and have determined that it does not have implications for
federalism.

6. Protest Activities

    The Coast Guard respects the First Amendment rights of protesters.
Protesters are asked to contact the person listed in the FOR FURTHER
INFORMATION CONTACT section to coordinate protest activities so that
your message can be received without jeopardizing the safety or
security of people, places or vessels.

7. Unfunded Mandates Reform Act

    The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538)
requires Federal agencies to assess the effects of their discretionary
regulatory actions. In particular, the Act addresses actions that may
result in the expenditure by a State, local, or tribal government, in
the aggregate, or by the private sector of $100,000,000 (adjusted for
inflation) or more in any one year. Though this rule will not result in
such an expenditure, we do discuss the effects of this rule elsewhere
in this preamble.

8. Taking of Private Property

    This rule will not affect a taking of private property or otherwise
have taking implications under Executive Order 12630, Governmental
Actions and Interference with Constitutionally Protected Property
Rights.

9. Civil Justice Reform

    This rule meets applicable standards in sections 3(a) and 3(b)(2)
of Executive Order 12988, Civil Justice Reform, to

minimize litigation, eliminate ambiguity, and reduce burden.

10. Protection of Children

    We have analyzed this rule under Executive Order 13045, Protection
of Children from Environmental Health Risks and Safety Risks. This rule
is not an economically significant rule and does not create an
environmental risk to health or risk to safety that may
disproportionately affect children.

11. Indian Tribal Governments

    This rule does not have tribal implications under Executive Order
13175, Consultation and Coordination with Indian Tribal Governments,
because it does not have a substantial direct effect on one or more
Indian tribes, on the relationship between the Federal Government and
Indian tribes, or on the distribution of power and responsibilities
between the Federal Government and Indian tribes.

12. Energy Effects

    This action is not a ``significant energy action'' under Executive
Order 13211, Actions Concerning Regulations That Significantly Affect
Energy Supply, Distribution, or Use.

13. Technical Standards

    This rule does not use technical standards. Therefore, we did not
consider the use of voluntary consensus standards.

14. Environment

    We have analyzed this rule under Department of Homeland Security
Management Directive 023-01 and Commandant Instruction M16475.lD, which
guide the Coast Guard in complying with the National Environmental
Policy Act of 1969 (NEPA) (42 U.S.C. 4321-4370f), and have determined
this action is one of a category of actions which do not individually
or cumulatively have a significant effect on the human environment.
This rule involves establishing a safety zone for a fireworks display
and is not expected to have a significant impact on the water or
environment. This rule is categorically from further review under
paragraph (34)(g) of Figure 2-1 of the Commandant Instruction. An
environmental analysis checklist supporting this determination and a
Categorical Exclusion Determination are available in the docket where
indicated under ADDRESSES. We seek any comments or information that may
lead to the discovery of a significant environmental impact from this
rule.

List of Subjects in 33 CFR Part 165

    Harbors, Marine safety, Navigation (water), Reporting and
recordkeeping requirements, Security measures, Waterways.

    For the reasons discussed in the preamble, the Coast Guard amends
33 CFR part 165 as follows:

PART 165--REGULATED NAVIGATION AREAS AND LIMITED ACCESS AREAS

0
1. The authority citation for part 165 continues to read as follows:

    Authority: 33 U.S.C. 1231; 46 U.S.C. Chapter 701, 3306, 3703; 50
U.S.C. 191, 195; 33 CFR 1.05-1, 6.04-1, 6.04-6, and 160.5; Pub. L.
107-295, 116 Stat. 2064; Department of Homeland Security Delegation
No. 0170.1.

0
2. Add Sec.  165.T05-0619 to read as follows:

Sec.  165.T05-0619  Safety Zone, Elizabeth River; Norfolk, VA.

    (a) Definitions. For the purposes of this section, Captain of the
Port means the Commander, Sector Hampton Roads. Representative means
any Coast Guard commissioned, warrant or petty officer who has been
authorized to act on the behalf of the Captain of the Port.
    (b) Location. The following area is a safety zone: Specified waters
of the Captain of the Port Sector Hampton Roads zone, as defined in 33
CFR 3.25-10, all waters of the Eastern Branch of the Elizabeth River
between approximate position 36[deg]50'29.8896'' N, 076[deg]16'43.662''
W and 36[deg]50'30.3678'' N, 076[deg]16'39.936'' W, extending 210 ft
from the shoreline into the Eastern Branch of the Elizabeth River in
the vicinity of Harbor Park Stadium in Norfolk, VA.
    (c) Regulations. (1) In accordance with the general regulations in
Sec.  165.23, entry into this zone is prohibited unless authorized by
the Captain of the Port, Hampton Roads or his designated
Representative.
    (2) The operator of any vessel in the immediate vicinity of this
safety zone shall:
    (i) Stop the vessel immediately upon being directed to do so by any
commissioned, warrant or petty officer on shore or on board a vessel
that is displaying a U.S. Coast Guard Ensign.
    (ii) Proceed as directed by any commissioned, warrant or petty
officer on shore or on board a vessel that is displaying a U.S. Coast
Guard Ensign.
    (3) The Captain of the Port, Hampton Roads can be reached through
the Sector Duty Officer at Sector Hampton Roads in Portsmouth, Virginia
at telephone Number<PHONE_NUMBER>.
    (4) The Coast Guard Representatives enforcing the safety zone can
be contacted on VHF-FM marine band radio channel 13 (165.65 Mhz) and
channel 16 (156.8 Mhz).
    (d) Enforcement period. This section will be enforced on August 2,
August 16, August 29, and August 30, 2014 from 10 p.m. to 10:30 p.m.
unless cancelled earlier by the Captain of the Port.

    Dated: July 23, 2014.
Christopher S. Keane,
Captain, U.S. Coast Guard, Captain of the Port Hampton Roads.
[FR Doc. 2014-18862 Filed 8-8-14; 8:45 am]
BILLING CODE 9110-04-P