[Federal Register Volume 80, Number 10 (Thursday, January 15, 2015)]
[Proposed Rules]
[Page 2067]
[FR Doc No: 2015-00461]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 63

[EPA-HQ-OAR-2011-0797; FRL-9921-63-OAR]
RIN 2060-AQ92

National Emission Standards for Hazardous Air Pollutants: Primary
Aluminum Reduction Plants; Extension of Comment Period

AGENCY: Environmental Protection Agency.

ACTION: Supplemental notice of proposed rulemaking; extension of public
comment period.

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SUMMARY: The Environmental Protection Agency (EPA) is announcing that
the period for providing public comments on the December 8, 2014,
supplemental proposed rule titled ``National Emission Standards for
Hazardous Air Pollutants: Primary Aluminum Reduction Plants'' is being
extended for 15 days.

DATES: Comments. The public comment period for the supplemental
proposed rule published in the Federal Register on December 8, 2014 (79
FR 72914), is being extended for 15 days to February 6, 2015, in order
to provide the public additional time to submit comments and supporting
information.

ADDRESSES: Comments. Written comments on the supplemental proposed rule
may be submitted to the EPA electronically, by mail, by facsimile or
through hand delivery/courier. Please refer to the supplemental
proposal (79 FR 72914) for the addresses and detailed instructions.
    Docket. Publicly available documents relevant to this action are
available for public inspection either electronically at http://www.regulations.gov or in hard copy at the EPA Docket Center, Room
3334, 1301 Constitution Avenue NW., Washington, DC. The Public Reading
Room is open from 8:30 a.m. to 4:30 p.m., Monday through Friday,
excluding legal holidays. A reasonable fee may be charged for copying.
The official public docket for this rulemaking is Docket ID No. EPA-HQ-
OAR-2011-0797.
    World Wide Web. The EPA Web site for this rulemaking is at http://www.epa.gov/ttn/atw/alum/alumpg.html.

FOR FURTHER INFORMATION CONTACT: Mr. David Putney, Metals and Inorganic
Chemicals Group (D243-02), Sector Policies and Programs Division,
Office of Air Quality Planning and Standards, U.S. Environmental
Protection Agency, Research Triangle Park, North Carolina 27711;
Telephone number:<PHONE_NUMBER>; Fax number<PHONE_NUMBER>; Email
address<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Comment Period

    After considering a request received to extend the public comment
period, the EPA has decided to extend the public comment period for an
additional 15 days. Therefore, the public comment period will end on
February 6, 2015, rather than January 22, 2015. This extension will
help ensure that the public has sufficient time to review the proposed
rule, the supporting technical documents and data available in the
docket.

    Dated: January 6, 2015.
Stephen D. Page,
Director, Office of Air Quality Planning and Standards.
[FR Doc. 2015-00461 Filed 1-14-15; 8:45 am]
BILLING CODE 6560-50-P


[Federal Register: June 12, 2008 (Volume 73, Number 114)]
[Notices]
[Page 33467-33476]
[DOCID:fr12jn08-112]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57932; File No. SR-Amex-2008-39]

Self-Regulatory Organizations; American Stock Exchange LLC;
Notice of Filing of Proposed Rule Change and Amendment No. 1 Thereto
Relating to the Listing and Trading of Trust Issued Receipts That
Directly Hold Investments in Certain Financial Instruments and To
Permit the Listing and Trading of Shares of Fourteen Funds of the
Commodities and Currency Trust

June 5, 2008.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on May 9, 2008, the American Stock Exchange LLC (``Amex'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been substantially prepared by the
Exchange. On June 4, 2008, the Exchange filed Amendment No. 1 to the
proposed rule change. The Commission is publishing this notice to
solicit comments on the proposed rule change, as amended, from
interested persons.
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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 Exchange proposes to: (1) Amend Commentary .07 to Amex Rule
1202 to permit the listing and trading of certain trust issued receipts
(``TIRs'') that hold any combination of investments including cash,
securities, options on securities and indices, commodities, futures
contracts, options on futures contracts, forward contracts, equity
caps, collars, and floors, and swap agreements (collectively,
``Financial Instruments''); and (2) list and trade the shares
(``Shares'') of fourteen funds (``Funds'') of the Commodities and
Currency Trust (``Trust'') based on certain commodity indexes,
commodities, and currencies pursuant to Commentary .07 to Amex Rule
1202, as proposed to be amended. The text of the proposed rule change
is available at Amex, the Commission's Public Reference Room, and
http://www.amex.com.

II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements
concerning the purpose of, and basis for, the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
Sections A, B, and C below, of the most significant aspects of such
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend Commentary .07 to Amex Rule 1202 to
permit the listing and trading of certain TIRs that directly hold any
combination of investments in Financial Instruments.\3\ In addition,
the Exchange proposes to list and trade the Shares of the Funds
pursuant to Commentary .07 to Amex Rule 1202, as proposed to be
amended.
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    \3\ The Exchange represents that permissible securities in
connection with Financial Instruments would not include foreign
equity securities.
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Proposed Revision to Commentary .07 to Amex Rule 1202
    Commentary .07 to Amex Rule 1202 currently permits the Exchange to
list and trade TIRs where the underlying trust holds ``Investment
Shares.'' \4\ Investment Shares are defined in Commentary .07(b)(1) to
Amex Rule 1202 as securities that are (a) issued by a trust,
partnership, commodity pool, or other similar entity that invests in
any combination of futures contracts, options on futures contracts,
forward contracts, commodities, swaps or high credit quality short-term
fixed-income securities or other securities, and (b) issued and
redeemed daily at net asset value (``NAV'') in amounts correlating to
the number of receipts created and redeemed in a specified aggregate
minimum number. As a result, TIRs that are listed pursuant to current
Commentary .07 to Amex Rule 1202 are required to be in the form of a
``master-feeder'' structure, whereby the listed security holds or
invests in the security of the fund that is investing in the prescribed
financial instruments.
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    \4\ See Commentary .07(a) to Amex Rule 1202. See also Securities
Exchange Act Release No. 53105 (January 11, 2006), 71 FR 3129
(January 19, 2006) (SR-Amex 2005-059) (approving, among other
things, the adoption of Commentary .07 to Amex Rule 1202).
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    As a result of a recent interpretation by the staff of the Internal
Revenue Service relating to the inability to interpose a grantor trust
in order to utilize a certain tax reporting form, the Exchange has been
notified that the need for the current master-feeder structure set
forth in Commentary .07 to Amex Rule 1202 is no longer necessary. The
Exchange represents that there are no substantive differences between
the proposed structure (TIRs directly holding Financial Instruments)
and the current master-feeder structure (TIRs holding Investment Shares
that invest in certain financial instruments). Amex states that its
proposal would provide an alternative for issuers so that TIRs may be
listed and traded on the Exchange that directly invests in or holds
Financial Instruments, rather than through an additional security of a
fund.
    Specifically, the proposal seeks to expand the application of
Commentary .07 to Amex Rule 1202 to both Investment Shares and
Financial Instruments. Accordingly, new Commentary .07(b)(4) to Amex
Rule 1202 would be added to define ``Financial Instrument'' as any
combination of cash, securities, options on securities and indices,
commodities, futures contracts, options on futures contracts, forward
contracts, equity caps, collars, and floors, and swap agreements. Amex
seeks to add the term ``Financial Instrument'' to where the term
``Investment Shares'' appears throughout Commentary .07 to Amex Rule
1202 to indicate that TIRs directly holding Financial Instruments may
be listed and traded on the Exchange.
Description of the Funds and the Shares
    The Shares of each Fund will generally be subject to the Amex rules
applicable to TIRs. The Shares represent common units of fractional
undivided beneficial interests in, and ownership of, each Fund. Each
Fund will invest the proceeds of its offering of Shares in various
Financial Instruments that will provide exposure to the Funds'
underlying currency, commodity, or commodity index, as applicable. In
addition, the Funds will also maintain cash positions in cash or money
market instruments for the purpose of collateralizing such positions
taken in the Financial Instruments.
    Shares of seven of the Funds of the Trust will be designated as
Ultra ProShares while the Shares of the other seven Funds of the Trust
will be

designated as UltraShort ProShares.\5\ Each of the Funds will have a
distinct investment objective. The Funds will attempt, on a daily
basis, to achieve their investment objective by corresponding to a
specified multiple or an inverse multiple of the performance of a
particular benchmark commodities index, commodity, or currency (each an
``Underlying Benchmark'' and collectively, the ``Underlying
Benchmarks'').
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    \5\ The Funds are the: (1) Ultra DJ-AIG Commodity ProShares; (2)
UltraShort DJ-AIG Commodity ProShares; (3) Ultra DJ-AIG Agriculture
ProShares; (4) UltraShort DJ-AIG Agriculture ProShares; (5) Ultra
DJ-AIG Crude Oil ProShares; (6) UltraShort DJ-AIG Crude Oil
ProShares; (7) Ultra Gold ProShares; (8) UltraShort Gold ProShares;
(9) Ultra Silver ProShares; (10) UltraShort Silver ProShares; (11)
Ultra Euro ProShares; (12) UltraShort Euro ProShares; (13) Ultra Yen
ProShares; and (14) UltraShort Yen ProShares. See Exhibit A to
Amex's proposed rule change.
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    Six Funds will be based on the following Underlying Benchmark
indexes: (1) The Dow Jones-AIG Commodity IndexSM; (2) the
Dow Jones-AIG Crude Oil Sub-IndexSM; and (3) the Dow Jones-
AIG Agriculture Sub-IndexSM (each, an ``Underlying Index''
and collectively, the ``Underlying Indexes''). Four Funds will be based
on the following Underlying Benchmark commodities: (1) Gold; and (2)
silver (each, an ``Underlying Commodity'' and collectively, the
``Underlying Commodities''). Lastly, four Funds will be based on the
following Underlying Benchmark currencies versus the U.S. dollar: (1)
The Euro; and (2) the Japanese Yen (each, an ``Underlying Currency''
and collectively, the ``Underlying Currencies'').
    The Exchange proposes to list and trade the Shares of the Funds,
that seek daily investment results, before fees and expenses, that
correspond to twice (200%) the daily performance of the Underlying
Benchmark (the ``Ultra Funds''). If each such Fund is successful in
meeting its investment objective, the NAV \6\ of the Shares of each
such Fund is expected to gain on a percentage basis, approximately
twice as much as each such Fund's respective Underlying Benchmark when
the price of the Underlying Benchmark increases on a given day, and
should lose approximately twice as much when such price declines on a
given day, before fees and expenses.
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    \6\ NAV means the total assets of a Fund including, but not
limited to, all cash and cash equivalents or other debt securities,
less total liabilities of such Fund, each determined on the basis of
generally accepted accounting principles in the United States,
consistently applied under the accrual method of accounting. In
particular, NAV includes any unrealized profit or loss on open swaps
and futures contracts and any other credit or debit accruing to a
Fund but unpaid or not received by a Fund.
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    The Exchange also proposes to list and trade Shares of the Funds,
that seek daily investment results, before fees and expenses that
correspond to twice the inverse (-200%) of the daily performance of the
Underlying Benchmark (the ``UltraShort Funds''). If each such Fund is
successful in meeting its objective, the NAV of the Shares of each such
Fund is expected to increase approximately twice as much, on a
percentage basis, as the respective Underlying Benchmark loses on a
given day, or should decrease approximately twice as much as the
respective Underlying Benchmark gains when the Underlying Benchmark
rises on a given day, before fees and expenses.
    The Exchange notes that the Commission has permitted the listing
and trading on Amex of exchange-traded fund-like products linked to the
performance of underlying currencies and commodities.\7\ In addition,
the Exchange further notes that the shares of other UltraFunds and
UltraShort Funds based on various securities indexes have previously
been approved by the Commission.\8\
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    \7\ See, e.g., Securities Exchange Act Release Nos. 55632 (April
13, 2007), 72 FR 19987 (April 20, 2007) (SR-Amex-2006-112)
(approving the listing and trading of the United States Natural Gas
Fund, LP); 53582 (March 31, 2006), 71 FR 17510 (April 6, 2006) (SR-
Amex 2005-127) (approving the listing and trading of the United
States Oil Fund, LP); 53521 (March 20, 2006), 71 FR 14967 (March 24,
2006) (SR-Amex 2005-072) (approving the listing and trading of the
iShares Silver Trust); 53105 (January 11, 2006), 71 FR 3129 (January
19, 2006) (SR-Amex 2005-059) (approving the listing and trading of
the DB Commodity Index Tracking Fund); 53059 (January 5, 2006), 71
FR 2072 (January 12, 2006) (SR-Amex 2005-128) (approving the trading
of the Euro Currency Trust pursuant to unlisted trading privileges
(``UTP'')); 51058 (January 19, 2005), 70 FR 3749 (January 26, 2005)
(SR-Amex 2004-38) (approving the listing and trading of the iShares
COMEX Gold Trust); and 51446 (March 29, 2005), 70 FR 17272 (April 5,
2005) (SR-Amex-2005-032) (approving the trading of streetTRACKS Gold
Shares pursuant to UTP). See also Securities Exchange Act Release
Nos. 55029 (December 29, 2006), 72 FR 806 (January 8, 2007) (SR-Amex
2006-76) (approving the listing and trading of the DB Multi-Sector
Commodity Trust); 54450 (September 14, 2006), 71 FR 55230 (September
21, 2006) (SR-Amex 2006-44) (approving the listing and trading of
shares of the DB Currency Index Value Fund); 55292 (February 14,
2007), 72 FR 8406 (February 26, 2007) (SR-Amex 2006-86) (approving
the listing and trading of shares of the PowerShares DB U.S. Dollar
Index Bullish Fund and the PowerShares DB U.S. Dollar Index Bearish
Fund); 56969 (December 14, 2007), 72 FR 72424 (December 20, 2007)
(approving the listing and trading of shares on the GreenHaven
Continuous Commodity Index Fund).
    \8\ See Securities Exchange Act Release Nos. 52553 (October 3,
2005), 70 FR 59100 (October 11, 2005) (SR-Amex-2004-62) (approving
the listing and trading of shares of the xtraShares Trust); 54040
(June 23, 2006), 71 FR 37629 (June 30, 2006) (SR-Amex-2006-41)
(approving the listing and trading of shares of the ProShares
Trust); 55117 (January 17, 2007), 72 FR 3442 (January 25, 2007) (SR-
Amex 2006-101) (approving the listing and trading of shares of the
ProShares Trust); 56592 (October 1, 2007), 72 FR 57364 (October 9,
2007) (SR-Amex-2007-60) (approving the listing and trading of shares
of the ProShares Trust based on international equity indexes); and
56998 (December 19, 2007), 72 FR 73404 (December 27, 2007) (SR-Amex-
2007-104) (approving the listing and trading of shares of the
ProShares Trust).
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    The Underyling Indexes. As noted above, six of the Funds will be
based on the Underlying Indexes.\9\ The Underlying Indexes are all sub-
indexes within the Dow Jones-AIG Commodity Index.\10\ The Commission
has previously approved for trading certain derivative securities
products based on the Dow Jones-AIG Commodity Index and certain of its
sub-indexes.\11\
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    \9\ ProShares, Dow Jones & Co. (``Dow Jones''), and AIG-FP (as
defined below) have entered into a non-exclusive license agreement
providing for the use of the Underlying Indexes in connection with
the Funds. The Exchange states that AIG-FP, its subsidiaries, and
affiliates are not responsible for and will not participate in the
issuance and creation of the Fund Shares.
    \10\ The Exchange states that it lists and trades exchange-
traded notes linked to the performance of the Dow Jones-AIG
Commodity Index Total Return. See Securities Exchange Act Release
No. 55776 (May 17, 2007), 72 FR 29015 (May 23, 2007) (SR-Amex-2007-
29) (approving the listing and trading of floating rate notes linked
to the performance of the Dow Jones-AIG Commodity Index Total
Return). The Exchange states that it also lists and trades exchange-
traded notes linked to the performance of the Dow Jones-AIG ExEnergy
Sub-Index. See Securities Exchange Act Release No. 54790 (November
20, 2006), 71 FR 68645 (November 27, 2006) (SR-Amex-2006-01)
(approving the listing and trading of principal protected notes
linked to the performance of the Dow Jones-AIG ExEnergy Sub-Index).
    \11\ See Securities Exchange Act Release No. 55548 (March 28,
2007), 72 FR 16392 (April 4, 2007) (SR-NYSE-2006-71) (approving the
listing and trading of nine series of exchange-traded notes of
Barclays Bank PLC linked to the sub-indexes of the Dow Jones-AIG
Commodity Index).
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    (1) Dow Jones-AIG Commodity Index Excess Return. This Underlying
Index is a proprietary index that AIG Financial Products Corp.
(successor to AIG International, Inc. or ``AIG-FP'') developed and that
Dow Jones, in conjunction with AIG-FP, calculates.\12\

 The methodology for determining the composition and weighting of the
Underlying Index and for calculating its level is subject to
modification by the sponsors at any time. Dow Jones disseminates the
Underlying Index level at least every 15 seconds from 8 a.m. to 3 p.m.
Eastern time (``ET'') \13\ and publishes a daily Underlying Index level
at approximately 5 p.m. ET each business day on its Web site at http://
www.djindexes.com and through other major market data vendors.
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    \12\ AIG-FP, a co-sponsor of the Index, represented to the
Exchange that it will: (1) Implement and maintain firewall
procedures reasonably designed to prevent the use and dissemination
by relevant personnel of AIG-FP, in violation of applicable laws,
rules, and regulations, of material non-public information relating
to changes in the composition or method of computation or
calculation of the Underlying Indexes; and (2) periodically check
the application of such firewall procedures as they relate to such
personnel of AIG-FP directly responsible for such changes. The
Exchange states that AIG-FP is not a broker-dealer, but does have
affiliated companies that are broker-dealers. Dow Jones has informed
the Exchange that, except as noted below, it does not have any
affiliates engaged in the securities or commodities trading business
and, as such, does not believe that such firewall procedures are
necessary. Dow Jones B.D. Services, Inc. (``DJBD'') is a wholly
owned subsidiary of Dow Jones and is a registered broker-dealer
under the Act. The Exchange represents that DJBD's business is
limited to collecting license fees from financial institutions and
exchanges and does not engage in the typical activities of a broker-
dealer.
    \13\ The Exchange states that any disseminated value after 3
p.m. ET is static due to the close of auction trading of various
commodities futures contracts.
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    The Underlying Index is re-weighted and rebalanced each year in
January on a price-percentage basis. The annual weightings for the
Underlying Index are determined each year in June or July by AIG-FP and
Dow Jones under the supervision of the Dow Jones-AIG Commodity Index
Oversight Committee (``Oversight Committee''),\14\ announced after
approval by the Oversight Committee and implemented the following
January.
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    \14\ The Oversight Committee was established by Dow Jones and
AIG-FP to assist with the methodology of the Dow Jones-AIG Commodity
Index. The Oversight Committee includes prominent members of the
financial, academic, and legal communities selected by AIG-FP and
meets annually to consider any changes to be made to the Dow Jones-
AIG Commodity Index for the coming year. The Oversight Committee may
also meet at such other times as may be necessary. The Oversight
Committee is subject to written policies that acknowledge their
obligations with respect to material, non-public information.
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    The Underlying Index is designed to track rolling futures positions
in a diversified basket of 19 exchange-traded futures contracts on
physical commodities. The 19 physical commodities selected for 2008 are
natural gas, crude oil, gasoline, heating oil, live cattle, lean hogs,
wheat, corn, soybeans, soybean oil, aluminum, copper, zinc, nickel,
gold, silver, sugar, cotton, and coffee.
    The Underlying Index tracks what is known as a rolling futures
position, which is a position where, on a periodic basis, futures
contracts on physical commodities specifying delivery on a nearby date
must be sold and futures contracts on physical commodities that have
not yet reached the delivery period must be purchased. An investor with
a rolling futures position is able to avoid delivering underlying
physical commodities while maintaining exposure to those commodities.
The rollover for each Underlying Index component occurs over a period
of five business days each month according to a pre-determined
schedule.
    The Dow Jones-AIG Commodity Index Excess Return is intended to
reflect the overall commodity sector. The Underlying Index tracks the
19 commodities from seven broad sectors such as energy, livestock,
grains, industrial metals, precious metals, softs, and vegetable oil.
The Underlying Index is composed of notional amounts of the futures
contracts for each of the Underlying Index commodities with the
weighting of each commodity broadly based in proportion to historical
levels of the world's production and supplies of such Underlying Index
commodity. The Underlying Index reflects the return of the underlying
commodity prices movement only, whether positive or negative. The
Exchange states that the Dow Jones-AIG Commodity Index Excess Return is
the basis for a listed and traded futures contract on the Board of
Trade of the City of Chicago, Inc. (``CBOT''). Futures contracts on the
Underlying Index commodities currently trade on U.S. futures exchanges,
with the exception of aluminum, nickel, and zinc, which trade on the
London Metal Exchange Ltd. (``LME'').
    (2) Dow Jones-AIG Crude Oil Sub-Index Excess Return. The Dow Jones-
AIG Crude Oil Sub-Index Excess Return is intended to reflect the
performance of crude oil as measured by the price of nearby futures
contracts of sweet, light crude oil traded on the New York Mercantile
Exchange, Inc. (``NYMEX''), including roll costs, without regard to
income earned on cash positions. Dow Jones disseminates this Underlying
Index level at least every 15 seconds from 8 a.m. to 3 p.m. ET and
publishes a daily Underlying Index level at approximately 5 p.m. ET
each business day on its Web site and through other major market data
vendors.
    The Exchange states that crude oil is the world's most actively
traded commodity and may experience significant volatility. The price
of crude oil is established by the supply and demand conditions in the
global market overall, and more particularly, in the main refining
centers of Singapore, Northwest Europe, and the U.S. Gulf Coast. Demand
for petroleum products by consumers, as well as agricultural,
manufacturing and transportation industries, determines demand for
crude oil by refiners. Since the precursors of product demand are
linked to economic activity, crude oil demand will tend to reflect
economic conditions. However, other factors such as weather also
influence product and crude oil demand.
    (3) Dow Jones-AIG Agriculture Sub-Index Excess Return. The Dow
Jones-AIG Agriculture Sub-Index Excess Return is intended to reflect
the agricultural market. This Underlying Index consists of the
following seven commodity futures contracts: coffee, corn, cotton,
soybeans, soybean oil, sugar, and wheat. The Underlying Index will
reflect the performance of its underlying commodities, including roll
costs and without regard to income earned on cash positions. Dow Jones
disseminates the Underlying Index level at least every 15 seconds from
8 a.m. to 3 p.m. ET and publishes a daily Underlying Index level at
approximately 5 p.m. ET each business day on its Web site and through
other major market data vendors.
    The Commodity Underlying Benchmarks. As noted above, four Funds
will be based on gold and silver Underlying Benchmark commodities.
    (1) Gold. The Ultra Gold Fund and the UltraShort Gold Fund are
designed to track a multiple or multiple inverse of the daily
performance of gold bullion as measured by the U.S. dollar fixing price
for delivery in London. These Funds will not directly or physically
hold the underlying gold, but instead will seek exposure to gold
through the use of Financial Instruments based on the price of gold to
pursue their respective investment objective.\15\ The benchmark price
of gold will be the U.S. dollar price of gold bullion as measured by
the London afternoon fixing price per troy ounce of unallocated gold
bullion for delivery in London through a member of the London Bullion
Market Association (``LBMA'') authorized to effect such delivery.
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    \15\ See Securities Exchange Act Release No. 51058 (January 19,
2005), 70 FR 3749 (January 26, 2005) (SR-Amex-2004-38) (approving,
among other things, the listing and trading of shares of the iShares
COMEX Gold Trust, which are TIRs representing an interest in the net
assets of a trust holding gold bullion). See also Securities
Exchange Act Release No. 51446 (March 29, 2005), 70 FR 17272 (April
5, 2005) (SR-Amex-2005-032) (approving the trading of shares of the
streetTRACKS Gold Trust pursuant to UTP).
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    The Exchange states that the price of gold is volatile with
fluctuations expected to affect the value of the Shares of these Funds.
The price movement of gold may be influenced by a variety of factors,
including announcements from central banks regarding reserve gold
holdings, agreements among central banks, political uncertainties, and
economic concerns. The gold market is a global marketplace consisting
of both over-the-counter (``OTC'') transactions and exchange-traded
products. The OTC market generally consists of transactions

in spot, forwards, options, and other derivatives, while exchange-
traded transactions consist of futures and options.
    A London gold ``fix'' is conducted each trading day at 3 p.m.
London time (``LT'') providing reference gold prices for that day's
trading. The Exchange notes that many long-term contracts are priced on
the basis of the London gold fix, and market participants will usually
refer to the London gold fix when looking for a basis for valuation.
The Exchange believes that the London fix is the most widely used
benchmark for daily gold prices and is quoted by various major market
data vendors.
    (2) Silver. The Ultra Silver Fund and the UltraShort Silver Fund
are designed to track a multiple or multiple inverse of the daily
performance of silver bullion as measured by the U.S. dollar fixing
price for delivery in London. The Funds may purchase Financial
Instruments based on the price of silver to pursue their respective
investment objective.\16\ The benchmark price of silver will be the
U.S. dollar price of silver bullion as measured by the London afternoon
fixing price per troy ounce of unallocated silver bullion for delivery
in London through a member of the LBMA authorized to effect such
delivery.
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    \16\ See Securities Exchange Act Release No. 53521 (March 20,
2006), 71 FR 14967 (March 24, 2006) (SR-Amex-2005-072) (approving
the listing and trading of shares which represent beneficial
ownership interests in the net assets of the iShares Silver Trust
consisting primarily of silver bullion).
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    The Exchange states that the price of silver is volatile with
fluctuations expected to affect the value of the Shares. The largest
industrial users of silver are the photographic, jewelry, and
electronic industries, and developments in these industries, among
other factors, may influence the price of silver. Like gold, the silver
market is a global marketplace consisting of both OTC transactions and
exchange-traded products. The OTC market generally consists of
transactions in spot, forwards, options, and other derivatives, while
exchange-traded transactions consist of futures and options.
    A London silver ``fix'' is conducted each trading day at 12 pm LT
providing reference silver prices for that day's trading. The Exchange
notes that many long-term contracts are priced on the basis of the
London silver fix, and market participants will usually refer to the
London silver fix when looking for a basis for valuation. The Exchange
believes that the London fix is the most widely used benchmark for
daily silver prices and is quoted by various major market data vendors.
    The Currency Underlying Benchmarks. As noted above, four Funds will
be based on the following Underlying Benchmark currencies versus the
U.S. dollar: (1) The Euro; and (2) the Japanese Yen. These Funds will
use the 4 p.m. ET euro and Japanese yen exchange rates, expressed in
terms of U.S. dollars per unit of foreign currency, as the basis for
these Underlying Benchmarks, respectively. The Exchange states that the
euro and Japanese yen exchange rates will be provided by Reuters.
    (1) Euro. The Ultra Euro Fund and the UltraShort Euro Fund are
designed to track a multiple or multiple inverse of the daily change in
the spot price of the euro versus the U.S. dollar.\17\ The euro is the
official currency of the Eurozone, which consists of 13 European states
including: Austria, Belgium, Cyprus, Finland, France, Germany, Greece,
Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovenia,
and Spain. The euro is managed and administered by the European Central
Bank and the European System of Central Banks. These Funds may purchase
Financial Instruments based on the euro to pursue their respective
investment objective.
---------------------------------------------------------------------------

    \17\ See Securities Exchange Act Release No. 53059 (January 5,
2006), 71 FR 2072 (January 12, 2006) (SR-Amex-2005-128) (approving
the trading of shares of the Euro Currency Trust pursuant to UTP).
---------------------------------------------------------------------------

    (2) Japanese Yen. The Ultra Japanese Yen Fund and the UltraShort
Japanese Yen Fund are designed to track a multiple or inverse of the
daily change in the spot price of the Japanese yen versus the U.S.
dollar. These Funds may purchase Financial Instruments based on the
Japanese yen to pursue their respective investment objective.
    Structure of the Funds. Each Fund is a separate series of the
Trust, a Delaware statutory trust.\18\ Each Fund will issue common
units of beneficial interest, or Shares, which represent units of
fractional undivided beneficial interest in and ownership of only that
Fund. Each Fund's Shares will be offered separately.
---------------------------------------------------------------------------

    \18\ The Exchange states that the Trust and the Funds will not
be subject to registration and regulation under the Investment
Company Act of 1940.
---------------------------------------------------------------------------

    Wilmington Trust Company (``Trustee'') is the sole trustee of the
Funds. The Trustee has delegated to the Managing Owner (as defined
below) all of the power and authority to manage the business and
affairs of the Funds. ProShare Capital Management LLC (``Managing
Owner'') will serve as the commodity pool operator and commodity
trading advisor of each Fund. The Managing Owner is registered as a
commodity pool operator and commodity trading advisor with the
Commodity Futures Trading Commission (``CFTC''), and with the National
Futures Association (``NFA''). Prudential Bache Commodities LLC
(``Commodity Broker'') will execute and clear the Funds' futures
contract transactions and will perform certain administrative services
for the Funds. The Commodity Broker is registered with the CFTC as a
Futures Commission Merchant and is a member of the NFA in such
capacity. The Administrator that will be selected prior to the Shares
of the Trust being offered to the public (``Administrator'') will
perform or supervise the performance of services necessary for the
operation and administration of the Fund. These services include, but
are not limited to, receiving and processing orders from Authorized
Participants (as defined below) to create and redeem baskets of Shares,
accounting, NAV, calculations, and other fund administrative services.
A marketing agent that will be a registered broker-dealer and that will
be selected prior to the Shares of the Trust being offered to the
public (``Marketing Agent'') will assist the Managing Owner and the
Administrator with certain functions and duties relating to the
creation and redemption of baskets of Shares. The Marketing Agent may
also distribute prospectuses and consult with the Managing Owner and
its affiliates in connection with marketing and sales strategies. A
custodian that will be selected prior to the Shares of the Trust being
offered to the public (``Custodian'') will serve as custodian of all
securities and cash at any time delivered to the Custodian by each
respective Fund and hold its securities in its name or the name of its
nominees. The Custodian is also expected to serve as each Fund's
transfer agent.
    Investment Objective of the Funds. Each Ultra Fund will seek
investment results that correspond, before fees and expenses, to twice
(200%) the daily performance of the Underlying Benchmark. Each
UltraShort Fund will seek daily investment results, before fees and
expenses, of twice the inverse or opposite (-200%) of the daily
performance of the Underlying Benchmark.
    In seeking to achieve each Fund's investment objective, the
Managing Owner determines the type, quantity, and mix of investment
positions that it believes in combination should produce daily returns
consistent with a Fund's investment objective. Each Fund will invest
principally in any one of, or combinations of, Financial Instruments
with respect to the applicable Fund's

Underlying Benchmark to the extent determined appropriate by the
Managing Owner. In addition, each Fund may establish long or short
positions in Financial Instruments as the Managing Owner believes will
further the investment objective of each Fund.
    While the Managing Owner will attempt to minimize any ``tracking
error'' between the investment results of a particular Fund and the
performance (and specified multiple thereof) or the inverse performance
(and specified multiple thereof) of its Underlying Benchmark, certain
factors may tend to cause the investment results of a Fund to vary from
such relevant Underlying Benchmark or specified multiple thereof.\19\
The Ultra Funds are expected to be highly correlated to the Underlying
Benchmark and investment objective (0.95 or greater). The UltraShort
Funds are expected to be highly inversely correlated to each Underlying
Benchmark and investment objective (-.95 or greater).\20\ In each case,
the Funds are expected to have a daily tracking error of less than 5%
(500 basis points) relative to the specified multiple or inverse
multiple of the performance of the relevant Underlying Benchmark.
---------------------------------------------------------------------------

    \19\ Several factors may cause a Fund to vary from the relevant
Underlying Benchmark and applicable investment objective including:
(1) A Fund's expenses, including brokerage and the cost of the
investment techniques employed by that Fund; (2) less than all of
the components in the Underlying Benchmark being held by a Fund and
components not included in the Underlying Benchmark being held by a
Fund; (3) an imperfect correlation between the performance of
Financial Instruments held by a Fund and the performance of the
Underlying Benchmark; (4) bid-ask spreads; (5) holding instruments
traded in a market that has become illiquid or disrupted; (6) a
Fund's Share prices being rounded to the nearest cent; (7) changes
to the Underlying Benchmark that are not disseminated in advance;
(8) the need to conform a Fund's portfolio holdings to comply with
investment restrictions or policies or regulatory or tax law
requirements; and (9) early and unanticipated closings of the
markets on which the holdings of a Fund trade, resulting in the
inability of the Fund to execute intended portfolio transactions.
    \20\ Correlation is the strength of the relationship between (1)
the change in a Fund's NAV and (2) the change in the Underlying
Benchmark (investment objective). The statistical measure of
correlation is known as the ``correlation coefficient.'' A
correlation coefficient of +1 indicates a perfect positive
correlation, while a value of -1 indicates a perfect negative
(inverse) correlation. A value of zero would mean that there is no
correlation between the two variables.
---------------------------------------------------------------------------

    The Exchange states that the Registration Statement for each Fund
will provide a detailed description, including, but not limited to, the
structure, creation/redemption process, investment objective and
strategies, characteristics, tax status, and distributions. Investors
are directed to each Fund's Registration Statement for a complete
explanation.
    The Portfolio Investment Methodology. The Managing Owner will seek
to establish an investment exposure in each portfolio corresponding to
each Fund's investment objective based upon its ``Portfolio Investment
Methodology.'' The Portfolio Investment Methodology is a mathematical
model based on well-established principles of finance that are widely
used by investment practitioners, including conventional index fund
managers.
    The Portfolio Investment Methodology was designed to determine for
each Fund the portfolio investments needed to achieve its stated
investment objectives. The Portfolio Investment Methodology takes into
account a variety of specified criteria and data, the most important of
which are: (1) Net assets (taking into account creations and
redemptions) in each Fund's portfolio at the end of each trading day;
(2) the amount of required exposure to the Underlying Benchmark; and
(3) the positions in Financial Instruments at the beginning of each
trading day. The Managing Owner pursuant to the methodology will then
mathematically determine the end-of-day positions to establish the
required amount of exposure to the Underlying Benchmark (``Solution''),
which will consist of Financial Instruments. The difference between the
start-of-day positions and the required end-of-day positions is the
actual amount of Financial Instruments that must be bought or sold for
the day. The Solution represents the required exposure and, when
necessary, is converted into an order or orders to be filled that same
day.
    Generally, portfolio trades effected pursuant to the Solution are
reflected in the NAV on the first business day (T+1) after the date the
relevant trade is made. Therefore, the NAV calculated for a Fund on a
given day should reflect the trades executed pursuant to the prior
day's Solution. For example, trades pursuant to the Solution calculated
on a Monday afternoon are executed on behalf of the Fund in question on
that day. These trades will then be reflected in the NAV for that Fund
that is calculated as of the time shown in the chart below.
    The timeline for the Portfolio Investment Methodology is as follows
and is reflected more specifically in the chart below. Authorized
Participants (``APs'' or ``Authorized Participants'') \21\ have a cut-
off of one-hour before the earliest underlying close for orders
submitted by telephone, facsimile, and other electronic means of
communication. Orders received via mail will be priced at the next NAV.
The Exchange states that AP orders by mail are exceedingly rare. Orders
are received by the Marketing Agent and relayed to the Managing Owner
within ten minutes. As such, the Managing Owner will know by
approximately 50 minutes before the earliest underlying close the
number of creation/redemption orders by APs for that day. Primary
orders are then placed at approximately 30 minutes prior to the
earliest underlying close using methods and order types that the
Managing Owner believes will most accurately replicate the close of the
Underlying Benchmark. Approximately five minutes before the earliest
underlying close, the Managing Owner will again look at the exposure to
make sure that the orders placed are consistent with the Solution, and
as described above, the Managing Owner will execute any other
transactions in Financial Instruments (secondary orders) to assure that
the Fund's exposure is consistent with the Solution.
---------------------------------------------------------------------------

    \21\ An Authorized Participant must (1) Be a registered broker-
dealer or other securities market participant, such as a bank or
other financial institution that is not required to register as a
broker dealer to engage in securities transactions, (2) be a
Depository Trust Corporation participant, and (3) have entered into
an agreement with each Fund and the Managing Owner.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                             Create or    Managing owner   Primary order       First         Close of           NAV
                                                           redeem cutoff     notified         placed         secondary       earliest       calculation
                                                         ------------------------------------------------      order     ----------------      time
                   Benchmark or index                                                                    ----------------                ---------------
                                                             (Earliest       (Earliest       (Earliest                                    (Close of last
                                                           close-60 min)   close-50 min)   close-30 min)     (Earliest      underlying      underlying)
                                                                                close-5 min)                        \22\
--------------------------------------------------------------------------------------------------------------------------------------------------------
Silver..................................................          6 a.m.       6:10 a.m.       6:30 a.m.       6:55 a.m.          7 a.m.          7 a.m.
Gold....................................................          9 a.m.       9:10 a.m.       9:30 a.m.       9:55 a.m.         10 a.m.         10 a.m.
DJ-AIG..................................................      12:30 p.m.      12:40 p.m.          1 p.m.       1:25 p.m.       1:30 p.m.       2:15 p.m.

Agriculture:
    DJ-AIG..............................................      10:45 a.m.      10:55 a.m.      11:15 a.m.      11:40 a.m.      11:45 a.m.       2:30 a.m.
Commodity:
    DJ-AIG..............................................       1:30 p.m.       1:40 p.m.          2 p.m.       2:25 p.m.       2:30 p.m.       2:30 p.m.
Crude Oil:
    Euro................................................          3 p.m.       3:10 p.m.       3:30 p.m.       3:55 p.m.          4 p.m.          4 p.m.
    Yen.................................................          3 p.m.       3:10 p.m.       3:30 p.m.       3:55 p.m.          4 p.m.          4 p.m.
--------------------------------------------------------------------------------------------------------------------------------------------------------

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

    \22\ For Silver and Gold, the NAV calculation time may vary due
to differences in when daylight savings time is effective between
London and New York. The actual times will equate to noon LT for
Silver and 3 p.m. LT for Gold.
---------------------------------------------------------------------------

    Description of Investment Techniques. In attempting to achieve its
individual investment objectives, a Fund will invest its assets in, and
will hold only, Financial Instruments. Each Fund may hold Financial
Instruments for the purposes of attempting to gain exposure to the
components of its Underlying Benchmark, without actually transacting in
such underlying components.
    The counterparties to the Financial Instruments, such as swap
agreements, forward contracts, equity caps, collars, and floors that a
Fund may use will be Futures Commission Merchants, major broker-
dealers, and banks. To protect itself from the credit risk that arises
in connection with swap agreements, forward contracts, equity caps,
collars, and floors, each Fund will enter into agreements with each
counterparty that provide for the netting of its overall exposure to
its counterparty and/or provide collateral or other credit support to
address the Fund's exposure. The counterparties to such an agreement
will generally be major broker-dealers and banks or their affiliates,
although certain institutions, such as large energy companies or other
institutions active in the commodities markets, may also be
counterparties. The Managing Owner will assess or review, as
appropriate, the creditworthiness of each potential or existing
counterparty to such an agreement. Furthermore, the Managing Owner for
each Fund will only enter into agreements with: (1) Members of the
Federal Reserve System, foreign banks with branches regulated by the
Federal Reserve Board, or foreign banks with representative offices
regulated by the Federal Reserve Board; (2) primary dealers in U.S.
government securities; (3) broker-dealers; (4) Commodities Futures
Merchants; or (5) affiliates of the foregoing.
    Creation and Redemption of Shares. The Funds will create and redeem
Shares in one or more blocks of at least 50,000 Shares of a Fund
(``Creation Units''). The Funds will be purchased and redeemed entirely
for cash (``Cash Deposit Amount''). The use of the Cash Deposit Amount
for the purchase and redemption of Creation Units is due to the limited
transferability of Financial Instruments. The Funds will issue and
redeem the Shares on a continuous basis, by or through Authorized
Participants at the NAV per Share next determined after an order to
purchase the Shares is received in proper form. Creation Units may be
created or redeemed only by Authorized Participants. Except when
aggregated in Creation Units, the Shares are not redeemable securities.
Authorized Participants may pay a fixed transaction fee of $500 in
connection with each order to create or redeem a Creation Unit,
regardless of the number of Creation Units. A variable transaction fee
of up to 0.10% of the value of each Creation Unit may also be
applicable to each creation/redemption transaction. Authorized
Participants may sell the Shares included in the Creation Units they
purchase from the Funds to other investors.
    On any business day,\23\ an Authorized Participant may place an
order with the Marketing Agent or Administrator to create one or more
Creation Units. For Funds that track an Underlying Benchmark commodity,
purchase orders must be placed one hour before the London ``fix'' for
such commodity, i.e., 2 p.m. LT (9 a.m. ET) for gold and 11 a.m. LT (6
a.m. ET) for silver. For Funds that are benchmarked against an
Underlying Index, purchase orders must be placed one hour prior to the
closing of the underlying commodity futures contract on the primary
exchange upon which the benchmarked commodity futures contract trades.
Where an Underlying Index contains multiple commodities, purchase
orders must be placed one hour before the earliest futures contract
close contained in the Underlying Index. For Funds that track an
Underlying Benchmark currency, purchase orders must be placed one hour
before the close of NYSE, normally 4 p.m. ET. The day on which the
Administrator or Marketing Agent receives a valid purchase order is the
purchase order date. Purchase orders are irrevocable by an Authorized
Participant. By placing a purchase order, and prior to delivery of such
Creation Units, an Authorized Participant's DTC account will be charged
the non-refundable transaction fee due for the purchase order.
---------------------------------------------------------------------------

    \23\ For purposes of processing both purchase and redemption
orders, a ``business day'' means any day other than a day when any
of Amex, the New York Stock Exchange LLC (``NYSE''), the Chicago
Mercantile Exchange (``CME''), CBOT, IntercontinentalExchange
(``ICE'')/New York Board of Trade (``NYBOT''), LME, or NYMEX is
closed for regular trading.
---------------------------------------------------------------------------

    The procedures by which an Authorized Participant can redeem one or
more Creation Units are the same as those for the creation of Creation
Units. An Authorized Participant may place an order with the Marketing
Agent or Administrator to redeem one or more Creation Units. Redemption
orders, which are irrevocable, must be placed one hour prior to the
closing of the relevant closing times. The day on which the Marketing
Agent or Administrator receives a valid redemption order is the
redemption order date. By placing a redemption order, an Authorized
Participant agrees to deliver the Creation Units to be redeemed through
DTC's book-entry system to the applicable Fund not later than noon ET,
on the third business day immediately following the redemption order
date. By placing a redemption order, and prior to receipt of the
redemption proceeds, an Authorized Participant's DTC account will be
charged the non-refundable transaction fee due for the redemption
order.
    Retail investors seeking to purchase or sell Shares on any day are
expected to effect such transactions in the secondary market at the
market price per Share,

rather than in connection with the creation or redemption of Creation
Units. The Exchange believes that the Shares will not trade at a
material discount or premium to the value of the assets held by the
Funds based on potential arbitrage opportunities. Due to the fact that
the Shares can be created and redeemed only in Creation Units at NAV,
the Exchange submits that arbitrage opportunities should provide a
mechanism to mitigate the effect of any premiums or discounts that may
exist from time to time. The Exchange believes that market
professionals will have the ability to arbitrage Shares of the Funds in
a manner similar to conventional index-based exchange-traded funds. The
disclosure of portfolio holdings and the availability of the Indicative
Fund Value (as defined below) and other pricing information about
portfolio holdings will permit arbitrageurs to identify when the market
price of the Shares is higher or lower than the value of the portfolio.
As a result, these market professionals will buy Shares when they are
priced lower than the portfolio and sell Shares when they are priced
higher than the portfolio, thereby moving prices back in line with the
value of the portfolio. Actual and potential arbitrage of this nature
should help the secondary market prices of the Shares to remain close
to NAV.
    Net Asset Value (NAV). The NAV of a Fund is total assets including,
but not limited to, all cash and cash equivalents or other debt
securities, less total liabilities, each determined on the basis of
generally accepted accounting principles. In particular, the NAV
includes any unrealized profit or loss on open Financial Instruments
and any other credit or debit accruing to a Fund, but unpaid or not
received.
    The NAV per Share of each Fund is computed by dividing the value of
the net assets of such Fund (i.e., the value of its total assets, less
total liabilities) by its total number of Shares outstanding. Expenses
and fees are accrued daily and taken into account for purposes of
determining NAV. The NAV of each Fund is calculated by the
Administrator and is determined each business day as set forth in the
chart above.
    The Exchange represents that it will obtain a representation (prior
to listing the Shares of the Funds) from the Trust that the NAV per
Share will be calculated daily and made available to all market
participants at the same time.
    Availability of Information Regarding the Shares. The Web sites for
the Fund and/or the Exchange, which are publicly accessible at no
charge, will contain the following information: (1) The daily current
NAV per Share, the prior business day's NAV per Share, and the reported
closing price; (2) the mid-point of the bid-ask price in relation to
the NAV per Share as of the time it is calculated (the ``Bid-Ask
Price''); \24\ (3) calculation of the premium or discount of such price
against the NAV per Share; (4) data in chart form displaying the
frequency distribution of discounts and premiums of the Bid-Ask Price
against the NAV per Share, within appropriate ranges for each of the
four previous calendar quarters; (5) the applicable prospectus; and (6)
other applicable quantitative information.
---------------------------------------------------------------------------

    \24\ The Bid-Ask Price of Shares is determined using the highest
bid and lowest offer as of the time of calculation of the NAV.
---------------------------------------------------------------------------

    As described above, the NAV per Share will be calculated and
disseminated daily. Amex will disseminate for the Funds on a daily
basis by means of the Consolidated Tape Association/Consolidated
Quotation High Speed Lines information with respect to the
corresponding Indicative Fund Value (as discussed below), recent NAVs
per Share, and the number of Shares outstanding. The Exchange will also
make available on its Web site daily trading volume of the Shares,
closing prices of the Shares, and the NAV per Share. The closing and
settlement prices of the futures contracts held by the Funds are also
readily available from CME, NYMEX, CBOT, ICE/NYBOT, LME, automated
quotation systems, published or other public sources, or on-line
information services such as Bloomberg or Reuters. Real-time
dissemination of spot pricing for gold, silver, euro, and Japanese yen
is available on a 24-hour basis worldwide from various major market
data vendors.
    Each Fund's total portfolio composition will be disclosed on the
Web site of the Trust (http://www.proshares.com) or another relevant
Web site as determined by the Trust and/or the Exchange. The Trust will
provide Web site disclosure of portfolio holdings daily and will
include, as applicable, the names and number of Financial Instruments
and characteristics of such instruments and cash equivalents, and
amount of cash held in the portfolio of each Fund. This Web site
disclosure of the portfolio composition of each Fund will occur at the
same time as the disclosure by the Managing Owner of the portfolio
composition to Authorized Participants so that all market participants
are provided portfolio composition information at the same time.
Therefore, the same portfolio information will be provided on the
public Web site as well as in electronic files provided to Authorized
Participants. Accordingly, each investor will have access to the
current portfolio composition of each Fund through the Trust's Web site
and/or at the Exchange's Web site at http://www.amex.com.
    The value of each Underlying Benchmark will be updated intra-day on
a real time basis as its components change in price. The daily closing
index value and the percentage change in the daily closing index value
for each Underlying Index will be publicly available on various Web
sites, such as http://www.ino.com and http://www.finance.yahoo.com.
Data regarding each Underlying Index is also available from the
respective index provider to subscribers. In addition, data is also
available regarding the underlying component commodities of each
Underlying Index from those futures exchanges that list and trade
futures contracts on those commodities. Several independent data
vendors also package and disseminate index data in various value-added
formats (including vendors displaying both index constituents and index
levels and vendors displaying index levels only).
    Data regarding spot pricing of the Underlying Benchmark commodities
(gold and silver) is publicly available on a 24-hour basis from various
financial information service providers, such as Reuters and Bloomberg.
In addition, the daily London fix for gold and silver is also
disseminated by various market data vendors and is available from the
LBMA Web site at http://www.lbma.org.uk. Data regarding futures
contracts and options on futures contracts in connection with the
Underlying Benchmark commodities is also available from NYMEX at http:/
/www.nymex.com.
    There is considerable public price and data information regarding
the Underlying Benchmark currencies (euro and Japanese yen). Spot
pricing related to the foreign currency exchange is available to
investors and market professionals on a 24-hour basis. A variety of
public Web sites and professional and subscription services provide
market and price information regarding the euro and the yen. Current
spot prices are also generally available from foreign exchange dealers.
    Dissemination of Indicative Fund Value. The Administrator
calculates and disseminates, once each trading day, the NAV per Share
to market participants. The Exchange represents that it will obtain a
representation (prior to listing of the Funds) from the Trust that the
NAV per Share will be calculated daily and made available to all market

participants at the same time. In addition, the Administrator causes to
be made available on a daily basis the corresponding Cash Deposit
Amounts to be deposited in connection with the issuance of the
respective Shares.
    To provide updated information relating to the Funds for use by
investors, professionals, and persons wishing to create or redeem the
Shares, the Exchange will disseminate an updated ``Indicative Fund
Value.'' The Indicative Fund Value will be disseminated on a per-Share
basis at least every 15 seconds during regular Amex trading hours of
9:30 a.m. to 4 p.m. ET. The Indicative Fund Value will be calculated
based on the cash required for creations and redemptions for a Fund,
adjusted to reflect the price changes of the Financial Instruments.
    The Exchange submits that the Indicative Fund Value on a per-Share
basis disseminated during Amex trading hours should not be viewed as a
real-time update of the NAV, which is calculated only once a day. The
Exchange believes that dissemination of the Indicative Fund Value based
on the cash amount required for a creation/redemption provides
additional information that is not otherwise available to the public
and is useful to professionals and investors in connection with the
Shares trading on the Exchange or the creation or redemption of the
Shares.
    Criteria for Initial and Continued Listing. The Funds will be
subject to the criteria in Commentary .07(d) of Amex Rule 1202 for
initial and continued listing of the Shares. The Funds will accept
subscriptions for Shares in Creation Units from Authorized Participants
expected to be in a range from $20 to $70 per Share during an initial
offering period, commencing with the initial effective date of the
prospectus and terminating no later than the ninetieth (90) day
following such date, unless (i) the subscription minimum is reached
before that date and the Managing Owner determines to end the initial
offering period early or (ii) that date is extended by the Managing
Owner for up to an additional 90 days.
    The anticipated minimum number of Shares for each Fund to be
outstanding at the start of trading will be 50,000 Shares.\25\ The
Exchange believes that this anticipated minimum number of Shares for
each Fund to be outstanding at the start of trading is sufficient to
provide adequate market liquidity and to further the objectives of the
Funds. The Exchange represents that, for the initial and continued
listing of the Shares, the Shares must be in compliance with Section
803 of the Amex Company Guide and Rule 10A-3 under the Act.\26\
---------------------------------------------------------------------------

    \25\ E-mail from Jeffrey P. Burns, Vice President and Associate
General Counsel, Amex, to Edward Cho, Special Counsel, Division of
Trading and Markets, Commission, dated June 5, 2008 (confirming the
minimum number of Shares for each Fund anticipated to be outstanding
at the start of trading on the Exchange).
    \26\ See 17 CFR 240.10A-3.
---------------------------------------------------------------------------

    Trading Rules. The Shares are equity securities subject to Amex
rules governing the trading of equity securities, including, among
others, rules governing priority, parity, and precedence of orders,
specialist responsibilities and account opening, and customer
suitability (Amex Rule 411). Initial equity margin requirements of 50%
will apply to transactions in the Shares. The Shares will trade on Amex
until 4 p.m. ET each business day and will trade in a minimum price
variation of $0.01 pursuant to Amex Rule 127-AEMI. Trading rules
pertaining to odd-lot trading in Amex equities (Amex Rule 205-AEMI),
stop and stop limit orders for securities that are derivatively priced
(Amex Rule 154-AEMI), and the prevention of trade-through transactions
of protected quotations (Amex Rule 126A-AEMI) will also apply to the
Shares.
    Specialist transactions in the Shares made in connection with the
creation and redemption of Shares will not be subject to the
prohibitions of Amex Rule 190(a).\27\ The Shares will generally be
subject to the Exchange's stabilization rule, Amex Rule 170, except
that specialists may buy on ``plus ticks'' and sell on ``minus ticks,''
in order to bring the Shares into parity with (i) The underlying asset
or commodity on which the Shares are based, (ii) the NAV of the Shares,
or (iii) the futures contract(s) on the underlying asset or commodity
on which the Shares are based. The Exchange notes that Commentary
.07(f) to Amex Rule 1202 sets forth this limited exception to Amex Rule
170.
---------------------------------------------------------------------------

    \27\ Amex Rule 190(a) states that no specialist or his member
organization, or any member, officer, employee, or approved person
therein, may, directly or indirectly, effect any business
transaction with a company or any officer, director or 10%
stockholder of a company in which stock the specialist is
registered. See Commentary .05 to Amex Rule 190 (exempting
specialists registered in a security issued by a trust, listed
pursuant to, among other rules, Amex Rule 1202, from the
requirements of Amex Rule 190(a)).
---------------------------------------------------------------------------

    The trading of the Shares will also be subject to certain conflict
of interest provisions set forth in Commentary .07(e) to Amex Rule
1202. Lastly, Commentary .07(g)(3) to Amex Rule 1202 prohibits the
specialist in the Shares from using any material, non-public
information received from any person associated with a member, member
organization, or employee of such person regarding trading by such
person or employee in the Underlying Index commodities, related
futures, or options on futures, or any other related derivatives.
    Surveillance. The Exchange submits that its surveillance procedures
are adequate to detect and deter violations of Exchange rules relating
to the trading of the Shares. The surveillance procedures will be
similar to those used for other commodity-based TIRs, Commodity-Based
Trust Shares, Currency Trust Shares, and exchange-traded funds and will
incorporate and rely upon existing Amex surveillance procedures
governing options and equities.
    The Exchange states that it currently has in place comprehensive
surveillance sharing agreements with ICE, LME, and NYMEX for the
purpose of providing information in connection with the trading in
futures contracts traded on their respective exchanges comprising the
Underlying Benchmarks. The Exchange also notes that CBOT, CME, and
NYBOT are members of the Intermarket Surveillance Group. As a result,
the Exchange asserts that market surveillance information is available
from relevant futures exchanges, if necessary, due to regulatory
concerns that may arise in connection with the futures contracts
    Information Circular. Amex will distribute an Information Circular
to its members in connection with the trading of the Shares. The
Information Circular, will discuss the special characteristics and
risks of trading this type of security, such as commodity or currency
fluctuation risk. Specifically, the Information Circular, among other
things, will discuss: (1) What the Shares are and how Shares are
created and redeemed; (2) the requirement that members and member firms
deliver a prospectus to investors purchasing the Shares prior to or
concurrently with the confirmation of a transaction, applicable Amex
rules; (3) dissemination information and trading information; (4)
applicable suitability rules; \28\ (5) that

the Fund is subject to various fees and expenses described in the
Registration Statement; (6) that there is no regulated source of last-
sale information regarding physical commodities and currencies, that
the SEC has no jurisdiction over the trading of physical commodities or
currencies, and that the CFTC has regulatory jurisdiction over the
trading of futures contracts and options on futures contracts; (7) the
procedures for purchases and redemptions of Shares and that Shares are
not individually redeemable but are redeemable only in one or more
Creation Units; (8) any relief, if granted, by the Commission from any
rules under the Act; (9) that the trading hours of the Shares will be
from 9:30 a.m. to 4 p.m. ET and that the NAV for the Shares will be
calculated shortly after 4 p.m. ET each trading day; and (10)
information about the Shares will be publicly available on the Amex Web
site and the Funds' Web sites.
---------------------------------------------------------------------------

    \28\ The Exchange notes that pursuant to Amex Rule 411, members
and member organizations are required in connection with
recommending transactions in the Shares to have a reasonable basis
to believe that a customer is suitable for the particular investment
given reasonable inquiry concerning the customer's investment
objectives, financial situation, needs, and any other information
known by such member. See Commentary .05 to Amex Rule 411 (providing
heightened suitability requirements for derivative securities
seeking to provide investment results that either exceed the
performance of an underlying reference asset by a specified multiple
or that correspond to the inverse (opposite) of the performance of
an underlying reference asset by a specified multiple). E-mail from
Jeffrey P. Burns, Vice President and Associate General Counsel,
Amex, to Edward Cho, Special Counsel, Division of Trading and
Markets, Commission, dated June 5, 2008.
---------------------------------------------------------------------------

    Trading Halts. The Exchange states that the Information Circular
will also inform members of Exchange policies regarding trading halts
in the Shares. Specifically, trading in the Shares will be halted in
the event the market volatility trading halt parameters set forth in
Amex Rule 117 have been reached. Second, in addition to the parameters
set forth in Amex Rule 117, the Exchange will halt trading in the
Shares if trading in a significant number of underlying related futures
contract(s) is halted or suspended. Third, the Exchange will halt
trading if it becomes aware that a Fund's NAV or disclosure of the
portfolio composition is not being disseminated or has not been
disseminated to all market participants at the same time. Fourth, the
Exchange will halt trading in the Shares if the value of an Underlying
Benchmark is no longer calculated or available on at least a 15-second
basis through one or more major market data vendors during the time the
Shares trade on Amex or if an Indicative Fund Value per Share updated
every 15 seconds is no longer calculated or available.\29\ Fifth, with
respect to a halt in trading that is not specified above, the Exchange
may also consider other relevant factors and the existence of unusual
conditions or circumstances that may be detrimental to the maintenance
of a fair and orderly market.
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    \29\ If the value of the Underlying Benchmark or the Indicative
Fund Value is not being disseminated on at least a 15-second basis
during the hours the Shares trade on the Exchange, the Exchange may
halt trading during the day in which the interruption to the
dissemination of the value of the Underlying Benchmark or the
Indicative Fund Value occurs. If the interruption to the
dissemination the value of the Underlying Benchmark or the
Indicative Fund Value persists past the trading day in which it
occurred, the Exchange will halt trading no later than the beginning
of the trading day following the interruption.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\30\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\31\ in particular, in that it
is designed to prevent fraudulent and manipulative acts and practices,
to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
facilitating transactions in securities, and, in general, to protect
investors and the public interest. The Exchange believes that the
proposal will facilitate the listing and trading of additional types of
commodity- and currency-based investments that will enhance competition
among market participants, to the benefit of investors and the
marketplace.
---------------------------------------------------------------------------

    \30\ 15 U.S.C. 78f(b).
    \31\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange believes the proposed rule change will impose no
burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act.

C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others

    The Exchange states that no written comments were solicited or
received with respect to the proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action

    Within 35 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which Amex consents, the Commission will:
    A. By order approve such proposed rule change, or
    B. Institute proceedings to determine whether the proposed rule
change should be disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to<EMAIL_ADDRESS>Please include
File Number SR-Amex-2008-39 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-Amex-2008-39. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/
sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for inspection and
copying in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of the filing also will be available for
inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-Amex-2008-39 and should be
submitted on or before July 3, 2008.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\32\
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    \32\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-13159 Filed 6-11-08; 8:45 am]

BILLING CODE 8010-01-P


[Federal Register: August 17, 2009 (Volume 74, Number 157)]
[Notices]
[Page 41419-41420]
[DOCID:fr17au09-59]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Project No. 516-459]

South Carolina Electric & Gas Company; Notice of Settlement
Agreement and Soliciting Comments

August 7, 2009.
    Take notice that the following Settlement Agreement (Settlement)
has been filed with the Commission and is available for public
inspection.
    a. Type of Application: Settlement Agreement.
    b. Project No.: P-516-459.
    c. Date filed: July 31, 2009.
    d. Applicant: South Carolina Electric & Gas Company (SC Electric &
Gas).
    e. Name of Project: Saluda Hydroelectric Project.
    f. Location: On the Saluda River in Richland, Lexington, Saluda,
and Newberry counties, South Carolina. The project does not occupy any
federal lands.
    g. Filed Pursuant to: Rule 602 of the Commission's Rules of
Practice and Procedure, 18 CFR 385.602.
    h. Applicant Contact: Mr. James M. Landreth, Vice President,
Fossil/Hydro Operations South Carolina Electric & Gas Company, 111
Research Drive, Columbia, South Carolina 29203; or Mr. William R.
Argentieri, Manager-Civil Engineering, South Carolina Electric & Gas
Company, 111 Research Drive, Columbia, South Carolina 29203, (803) 217-
9162.
    i. FERC Contact: Lee Emery at<PHONE_NUMBER>, or e-mail at
<EMAIL_ADDRESS>    j. Deadline for Filing Comments: The deadline for filing comments
on the Settlement Agreement is 53 days from the date of this notice
(September 29, 2009). The deadline for filing reply comments is 98 days
from the date of this notice (November 13, 2009). All documents
(original and eight copies) should be filed with: Kimberly D. Bose,
Secretary, Federal Energy Regulatory Commission, 888 First Street, NE.,
Washington, DC 20426.
    The Commission's Rules of Practice require all participants filing
documents with the Commission to serve a copy of that document on each
person on the official service list for the project. Further, if a
participant files comments or documents with the Commission relating to
the merits of an issue that may affect the responsibilities of a
particular resource agency, they must also serve a copy of the document
on that resource agency.
    Comments may be filed electronically via the Internet in lieu of
paper. The Commission strongly encourages electronic filings. See 18
CFR 385.2001(a)(1)(iii) and the instructions of the Commission's Web
site (http://www.ferc.gov) under the ``e-filing'' link. For a simpler
method of submitting text only comments, click on ``Quick Comment.''
    k. SC Electric & Gas filed a comprehensive settlement agreement
(Agreement) on behalf of itself, American Rivers, American Whitewater,
Capitol City Lake Murray Country, Catawba Indian Nation, City of
Columbia Fire and Rescue, City of Columbia Parks and Recreation,
Coastal Conservation League, Lake Murray Association, Lake Murray
Docks, Lake Murray Homeowners Coalition, Lake Murray Power Squadron,
Lake Watch, Lake Murray Chamber of Commerce, Midlands Striper Club,
Riverbanks Zoo

and Garden, South Carolina Department of Natural Resources, the South
Carolina Wildlife Federation, and the South Carolina Department of
Archives and History. The purpose of the Agreement is to resolve, as
well as to provide procedures for resolving, among the signatories,
issues associated with issuance of a new license for the project,
including Lake Murray lake levels and downstream minimum flows in the
lower Saluda River. Major issues covered in the settlement include: (1)
Public safety measures associated with the release of flows to the
Saluda River downstream from the Saluda dam; (2) six measures to
protect of aquatic resources, including trout and sturgeon, in the
lower Saluda river; (3) minimum and recreation flow releases from the
Saluda dam to the lower Saluda River; (4) a low-flow operating
protocol, except for the lake level that would trigger implementation
of the protocol; (5) upgrading unit runners to improve water quality in
the downstream reaches; (6) leasing lands for waterfowl habitat; and
(7) recreational improvements at existing sites around Lake Murray and
along the lower Saluda River, as well as set-aside lands for future
recreation sites.
    SC Electric & Gas requests that the Commission: (1) Incorporate the
obligations and agreements, as illustrated in Appendix A of the
Agreement, without material modification into the terms and conditions
of the new license; and (2) issue a new license for a term of 50 years.
    l. A copy of the Settlement Agreement is available for review at
the Commission in the Public Reference Room or may be viewed on the
Commission's Web site at http://www.ferc.gov, using the ``e-Library''
link. Enter the docket number, excluding the last three digits in the
docket number field to access the document. For assistance, contact
FERC Online Support at<EMAIL_ADDRESS>or toll-free at 1-
866-208-3676, or for TTY,<PHONE_NUMBER>. A copy is also available for
inspection and reproduction at the address in item h above.
    You may register online at http://www.ferc.gov/esubscribenow.htm to
be notified via e-mail of new filings and issuances related to this or
other pending projects. For assistance, contact FERC Online Support.

Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. E9-19612 Filed 8-14-09; 8:45 am]

BILLING CODE 6717-01-P