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Code · REGISTER · 2006-02-23 · SECURITIES AND EXCHANGE COMMISSION · Notices

Notices. Amendment 1

17,839 words·~81 min read·/register/2006/02/23/06-1643

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BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-53318; File No. SR-Amex-2006-12] Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Establish a Technology Assessment Fee for the Use of Legacy Options Trading Systems February 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 February 6, 2006, the American Stock Exchange LLC (“Exchange” or “Amex”) 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 prepared by the Exchange.
Amex has designated this proposal as one establishing or changing a due, fee, or other charge imposed by Amex under section 19(b)(3)(A)(ii) of the Act 3 and Rule 19b-4(f)(2) thereunder, 4 which renders the proposed rule change effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b-4. 3 15 U.S.C. 78s(b)(3)(A)(ii). 4 17 CFR 240.19b-4(f)(2).
I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to adopt a Technology Assessment Fee to be assessed on its members for the continued use of legacy options trading systems. The text of the proposed rule change is available on Amex's Web site ( *http://www.amex.com* ), at Amex's principal office, and at the Commission's Public Reference Room. 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 On May 20, 2004, the Commission approved the Amex's proposal to implement a new options trading platform known as the Amex New Trading Environment (the “ANTE System” or “ANTE”). 5 ANTE is intended to replace the following legacy options trading systems: the Amex Options Display Book (AODB), Amex's theoretical price calculator (XTOPS), and Auto-Ex.
On May 25, 2004, the Amex began rolling out the ANTE System on its trading floor on a specialist's post-by-specialist's post basis. At that time it was anticipated the roll-out would be completed by the end of the second quarter of 2005. The implementation date for the full roll-out of the ANTE System was subsequently extended to June 30, 2006. 6 Amex has rolled out the ANTE System to all its option classes except one—the Nasdaq 100 Index options (“NDX”). NDX has the largest notional value of any option class, with average premiums of $40.
The specialist for this product is concerned that the theoretical price calculator provided by the ANTE System may not accurately price the options on this index. The specialist has installed its own theoretical index price calculator, which currently calculates prices for the firm's other options products, including the Mini Nasdaq Index (MNX), an index valued at one-tenth the value of NDX. 5 *See* Securities Exchange Act Release No. 49747, 69 FR 30344 (May 27, 2004) (File No.
SR-Amex-2003-89). 6 In a separate filing submitted February 6, 2006, for immediate effectiveness pursuant to Section 19(b)(3)(A)(iii) of the Act, 15 U.S.C. 78s(b)(3)(A)(iii), the Exchange proposed to extend the deadline for implementation of ANTE System for all option classes from December 31, 2005, to June 30, 2006. *See* File No. SR-Amex-2006-13, notice of which the Commission is separately publishing for comment today (Securities Exchange Act Release No. 53319). The specialist firm continues to resist moving NDX off the legacy options trading systems and onto the ANTE System as it seeks to gain experience using its proprietary price calculator.
The NDX specialist is concerned about the magnitude of errors that could occur using a theoretical price calculator with NDX, given its large notional value and the size of the underlying index. Although the Exchange is mindful of the specialist's concerns, maintaining two platforms for the trading of options—the legacy options trading systems and ANTE—is costly for the Exchange. Therefore, the Exchange is proposing to assess the specialist firm a fee to cover the Exchange's costs for maintaining its legacy options trading systems at the Securities Industry Automation Corporation (“SIAC”).
The Exchange currently pays a monthly maintenance fee to SIAC of $12,000. The proposal will require the specialist firm to reimburse the Exchange for these maintenance costs until it transitions all of its options classes to the ANTE System. 7 7 The Exchange expects that the NDX specialist will move NDX onto the ANTE System by June 30, 2006, the new deadline for implementation of the ANTE System. *See supra* note 6. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with section 6(b) of the Act 8 in general and furthers the objectives of section 6(b)(4) 9 in particular in that it is intended to provide for the equitable allocation of reasonable dues, fees, and other charges among its members and issuers and other persons using its facilities.
Specifically, the Exchange is proposing to assess the one member organization continuing to use its legacy options trading systems in order to recover its costs for maintaining these systems. 8 15 U.S.C. 78f(b). 9 15 U.S.C. 78f(b)(4). 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 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 The foregoing proposed rule change has become effective pursuant to section 19(b)(3)(A) of the Act 10 and Rule 19b-4(f)(2) 11 thereunder because it establishes or changes a due, fee, or other charge imposed by the Exchange.
At any time within 60 days of the filing of the proposed rule change, the Commission may summarily abrogate such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. 10 15 U.S.C. 78s(b)(3)(A). 11 17 CFR 19b-4(f)(2). IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act.
Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission's Internet comment form ( *http://www.sec.gov/rules/sro.shtml* ); or • Send an e-mail to *rule-comments@sec.gov.* Please include File No. SR-Amex-2006-12 on the subject line. Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-Amex-2006-12.
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 also will be available for inspection and copying at the principal office of the Amex. 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-2006-12 and should be submitted on or before March 16, 2006. For the Commission, by the Division of Market Regulation, pursuant to delegated authority. 12 12 17 CFR 200.30-3(a)(12).
J. Lynn Taylor, Assistant Secretary. [FR Doc. E6-2521 Filed 2-22-06; 8:45 am] BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-53321; File No. SR-NASD-2006-024] Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Notice of Filing and Order Granting Accelerated Approval of Proposed Rule Change To Modify Pricing for Non-Members Using Nasdaq's Brut and Inet Facilities February 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 February 13, 2006, the National Association of Securities Dealers, Inc.
(“NASD”), through its subsidiary, The Nasdaq Stock Market, Inc. (“Nasdaq”), filed with the Securities and Exchange Commission (“Commission”) the proposed rule change as described in Items I and II below, which Items have been prepared by Nasdaq. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. In addition, the Commission is granting accelerated approval of the proposed rule change. 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b-4.
I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change Nasdaq proposes to modify the pricing for non-members using Nasdaq's Brut and Inet Facilities to trade securities priced under $1.00. The filing will apply to these non-members the same pricing change that Nasdaq is instituting for members. 3 Nasdaq seeks approval to implement the proposed rule change retroactively as of February 13, 2006. The text of the proposed rule change is available on NASD's Web site ( *http://www.nasd.com* ), at NASD's principal office, and at the Commission's Public Reference Room. 3 *See* Securities Exchange Act Release No. 53321 (February 15, 2006) (File No.
SR-NASD-2006-023). II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, Nasdaq included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it had received on the proposed rule change. The text of these statements may be examined at the places specified in Item III below. Nasdaq 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 Since the beginning of February, Nasdaq has observed an increase in the extent to which market participants are posting limit orders in certain securities priced under $1.00 in circumstances where the price of the posted order locks or crosses prices available on other markets or improves upon the NBBO by an extremely small amount. The alteration in market participant behavior appears to be a result of both Nasdaq's introduction of subpenny pricing in Nasdaq-listed securities priced under $1.00, as well as the dissemination of said pricing via the Securities Information Processor, and a recent Nasdaq pricing change that eliminated caps on liquidity provider rebates for these securities.
As a result, it appears that certain participants are submitting orders in these low-priced securities in a manner calculated to earn liquidity provider rebates. Because Nasdaq considers this behavior detrimental to market quality, Nasdaq proposes to modify its pricing for securities priced under $1.00 to eliminate the liquidity provider credit. To offset the effect of this change on market participants engaged in legitimate trading of these securities, Nasdaq also proposes to reduce the fee to access liquidity in these stocks from the current fee of $0.0028 or $0.003 per share to a charge equal to 0.1% of the total transaction cost.
Thus, in a transaction to buy 1,000 shares at $0.50, the charge to access liquidity would be $0.50. Nasdaq believes this change will also ensure that Nasdaq's pricing for low-priced securities is consistent with Rule 610(c)(2) of Regulation NMS when it takes effect later this year. Rule 610(c)(2) will limit fees for access to quotations under $1.00 to no more than 0.3% of the quotation price per share. In SR-NASD-2006-023, Nasdaq made this change applicable to NASD members on an immediately effective basis.
Nasdaq is submitting this filing to apply the changes to non-members using the Brut and Inet facilities, and also plans to submit a filing to make both the member and non-member changes retroactive to February 1, 2006. 2. Statutory Basis Nasdaq believes that the proposed rule change is consistent with the provisions of section 15A of the Act, 4 in general, and with section 15A(b)(5) of the Act, 5 in particular, in that it provides for the equitable allocation of reasonable dues, fees and other charges among members and issuers and other persons using any facility or system which the NASD operates or controls.
The proposed rule change applies to non-members that use Brut and Inet a fee change that is being implemented for NASD members that use the Nasdaq Facilities. Accordingly, Nasdaq believes that the proposed rule change promotes an equitable allocation of fees between members and non-members using Nasdaq's order execution facilities. 4 15 U.S.C. 78 *o* -3. 5 15 U.S.C. 78 *o* -3(b)(5). B. Self-Regulatory Organization's Statement on Burden on Competition Nasdaq does not believe that the proposed rule change will result in 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 Written comments were neither solicited nor received. 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 Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission's Internet comment form ( *http://www.sec.gov/rules/sro.shtml* ); or • Send an e-mail to *rule-comments@sec.gov.* Please include File Number SR-NASD-2006-024 on the subject line.
Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-NASD-2006-024. 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 also will be available for inspection and copying at the principal office of the NASD.
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 publicly available. All submissions should refer to File Number SR-NASD-2006-024 and should be submitted on or before March 16, 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 self-regulatory organization. 6 Specifically, the Commission believes that the proposed rule change is consistent with section 15A(b)(5) of the Act, 7 which requires that the rules of the self-regulatory organization provide for the equitable allocation of reasonable dues, fees, and other charges among members and issuers and other persons using any facilities or system which it operates or controls. 6 In approving this proposal, the Commission has considered its impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). 7 15 U.S.C. 78 *o* -3(b)(5).
The Commission notes that this proposal would retroactively modify pricing for non-NASD members using the Nasdaq Facilities that would permit the schedule for non-NASD members to mirror the schedule applicable to NASD members that became effective February 13, 2006, pursuant to SR-NASD-2006-023. Nasdaq has requested that the Commission find good cause for approving the proposed rule change prior to the thirtieth day after publication of notice thereof in the **Federal Register** .
The Commission notes that the proposed fees for non-NASD members are identical to those in SR-NASD-2006-023, which implemented those fees for NASD members and which became effective as of February 13, 2005. The Commission notes that this change will promote consistency in Nasdaq's fee schedule by applying the same pricing schedule with the same date of effectiveness for both NASD members and non-NASD members. Accordingly, the Commission finds good cause, pursuant to section 19(b)(2) of the Act, 8 for approving the proposed rule change prior to the thirtieth day after the date of publication of notice thereof in the **Federal Register** . 8 15 U.S.C. 78s(b)(2).
V. Conclusion *It is therefore ordered,* pursuant to section 19(b)(2) of the Act, 9 that the proposed rule change (SR-NASD-2006-024) be, and hereby is, approved on an accelerated basis. 9 15 U.S.C. 78s(b)(2). For the Commission, by the Division of Market Regulation, pursuant to delegated authority. 10 10 17 CFR 200.30-3(a)(12). J. Lynn Taylor, Assistant Secretary. [FR Doc. E6-2517 Filed 2-22-06; 8:45 am] BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-53320;
File No. SR-NASD-2006-023] Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto To Modify Pricing for NASD Members Using the Nasdaq Market Center and Nasdaq's Brut and Inet Facilities February 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 February 13, 2006, the National Association of Securities Dealers, Inc.
(“NASD”), through its subsidiary, The Nasdaq Stock Market, Inc. (“Nasdaq”), 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 prepared by Nasdaq. On February 14, 2006, Nasdaq submitted Amendment No. 1 to the proposed rule change. 3 Nasdaq has designated this proposal as one establishing or changing a due, fee, or other charge imposed by the self-regulatory organization under section 19(b)(3)(A)(ii) of the Act, 4 and Rule 19b-4(f)(2) thereunder, 5 which renders the proposal effective upon filing with the Commission.
The Commission is publishing this notice to solicit comments on the proposed rule change, as amended, from interested persons. 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b-4. 3 Amendment No. 1 made certain technical corrections to the proposed rule text. 4 15 U.S.C. 78s(b)(3)(A)(ii). 5 17 CFR 240.19b-4(f)(2). I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change Nasdaq proposes to modify the pricing for NASD members using the Nasdaq Market Center and Nasdaq's Brut and Inet Facilities (“Nasdaq Facilities”) to trade securities priced under $1.00.
Nasdaq states that it will implement the proposed rule change on February 13, 2006. The text of the proposed rule change, as amended, is set forth below. Proposed new language is in *italics;* proposed deletions are in [brackets]. 6 6 Changes are marked to the rule text that appears in the electronic NASD Manual found at *http://www.nasd.com.* Prior to the date when The NASDAQ Stock Market LLC (“NASDAQ LLC”) commences operations, NASDAQ LLC will file a conforming change to the rules of NASDAQ LLC approved in Securities Exchange Act Release No. 53128 (January 13, 2006), 71 FR 3550 (January 23, 2006) (File No. 10-131). 7010.
System Services (a)-(h) No change.
(i)Nasdaq Market Center, Brut, and Inet Order Execution and Routing.
(1)The following charges shall apply to the use of the order execution and routing services of the Nasdaq Market Center, Brut, and Inet (the “Nasdaq Facilities”) by members for all Nasdaq-listed securities subject to the Nasdaq UTP Plan and for Exchange-Traded Funds that are not listed on Nasdaq. The term “Exchange-Traded Funds” shall mean Portfolio Depository Receipts, Index Fund Shares, and Trust Issued Receipts as such terms are defined in Rule 4420(i), (j), and (l), respectively. Order Execution Order that accesses the Quote/Order of a market participant that does not charge an access fee to market participants accessing its Quotes/Orders through the Nasdaq Facilities: Charge to member entering order: Members with an average daily volume through the Nasdaq Facilities in all securities during the month of
(i)more than 30 million shares of liquidity provided, and
(ii)more than 50 million shares of liquidity accessed and/or routed $0.0028 per share executed ( *or, in the case of executions against Quotes/Orders at less than $1.00 per share, 0.1% of the total transaction cost).* Other members $0.0030 per share executed ( *or, in the case of executions against Quotes/Orders at less than $1.00 per share, 0.1% of the total transaction cost).* Credit to member providing liquidity: Members with an average daily volume through the Nasdaq Facilities in all securities during the month of more than 30 million shares of liquidity provided $0.0025 per share executed ( *or $0, in the case of executions against Quotes/Orders at less than $1.00 per share).* Other members $0.0020 per share executed ( *or $0, in the case of executions against Quotes/Orders at less than $1.00 per share).* Order that accesses the Quote/Order of a market participant that charges an access fee to market participants accessing its Quotes/Orders through the Nasdaq [Market Center] *Facilities:* Charge to member entering order: Members with an average daily volume through the Nasdaq Facilities in all securities during the month of more than 500,000 shares of liquidity provided $0.001 per share executed (but no more than $10,000 per month). Other members $0.001 per share executed. Order Routing for Nasdaq-Listed Securities Any order entered by a member that is routed outside of the Nasdaq Facilities and that does not attempt to execute in the Nasdaq Facilities prior to routing The greater of
(i)$0.004 per share executed or
(ii)a pass-through of all applicable access fees charged by electronic communications networks that charge more than $0.003 per share executed. Any other order entered by a member that is routed outside of the Nasdaq Facilities: Members with an average daily volume through the Nasdaq Facilities in all securities during the month of
(i)more than 30 million shares of liquidity provided, and
(ii)more than 50 million shares of liquidity accessed and/or routed The greater of
(i)$0.0028 per share executed or
(ii)a pass-through of all applicable access fees charged by electronic communications networks that charge more than $0.003 per share executed. Other members The greater of
(i)$0.0030 per share executed or
(ii)a pass-through of all applicable access fees charged by electronic communications networks that charge more than $0.003 per share executed. Order Routing for Exchange-Traded Funds Not Listed on Nasdaq Order routed to the New York Stock Exchange (“NYSE”) through its DOT system See DOT fee schedule in Rule 7010(i)(6). Any other order entered by a member that is routed outside of the Nasdaq Facilities and that does not attempt to execute in the Nasdaq Facilities prior to routing $0.004 per share executed. Order routed to the American Stock Exchange (“Amex”) after attempting to execute in the Nasdaq Facilities $0.01 per share executed. Order routed through the Intermarket Trading System (“ITS”) after attempting to execute in the Nasdaq Facilities $0.0007 per share executed. Order routed to venues other than the NYSE and Amex after attempting to execute in the Nasdaq Facilities $0.0035 per share executed. (2)-(7) No change. (j)-(w) No change. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, Nasdaq included statements concerning the purpose of and basis for the proposed rule change, as amended, and discussed any comments it received on the proposed rule change, as amended. The text of these statements may be examined at the places specified in Item IV below. Nasdaq 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 Since the beginning of February, Nasdaq has observed an increase in the extent to which market participants are posting limit orders in certain securities priced under $1.00 in circumstances where the price of the posted order locks or crosses prices available on other markets or improves upon the NBBO by an extremely small amount. The alteration in market participant behavior appears to be a result of both Nasdaq's introduction of subpenny pricing in Nasdaq-listed securities priced under $1.00, as well as the dissemination of said pricing via the Securities Information Processor, and a recent Nasdaq pricing change that eliminated caps on liquidity provider rebates for these securities. As a result, it appears that certain participants are submitting orders in these low-priced securities in a manner calculated to earn liquidity provider rebates. Because Nasdaq considers this behavior detrimental to market quality, Nasdaq proposes to modify its pricing for securities priced under $1.00 to eliminate the liquidity provider credit. To offset the effect of this change on market participants engaged in legitimate trading of these securities, Nasdaq also proposes to reduce the fee to access liquidity in these stocks from the current fee of $0.0028 or $0.003 per share to a charge equal to 0.1% of the total transaction cost. Thus, in a transaction to buy 1,000 shares at $0.50, the charge to access liquidity would be $0.50. This change will also ensure that Nasdaq's pricing for low-priced securities is consistent with Rule 610(c)(2) of Regulation NMS when it takes effect later this year. Rule 610(c)(2) will limit fees for access to quotations under $1.00 to no more than 0.3% of the quotation price per share. This filing applies to NASD members and is effective immediately. Nasdaq is also submitting a filing to apply the changes to non-members using the Brut and Inet facilities, 7 and also plans to submit a filing to make both the member and non-member changes retroactive to February 1, 2006. 7 *See* Securities Exchange Act Release No. 53321 (February 15, 2006) (File No. SR-NASD-2006-024). 2. Statutory Basis Nasdaq believes that the proposed rule change, as amended, is consistent with the provisions of section 15A of the Act, 8 in general, and with section 15A(b)(5) of the Act, 9 in particular, in that it provides for the equitable allocation of reasonable dues, fees and other charges among members and issuers and other persons using any facility or system which the NASD operates or controls. Nasdaq states that the proposed rule change, as amended, would modify Nasdaq's fees and rebates associated with Nasdaq-listed securities priced under $1.00 in order to eliminate incentives to engage in behavior with respect to such securities that has degraded market quality. 8 15 U.S.C. 78 *o* -3. 9 15 U.S.C. 78 *o* -3(b)(5). B. Self-Regulatory Organization's Statement on Burden on Competition Nasdaq does not believe that the proposed rule change, as amended, will result in 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 Written comments were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change is subject to section 19(b)(3)(A)(ii) of the Act 10 and subparagraph (f)(2) of Rule 19b-4 thereunder 11 because it establishes or changes a due, fee, or other charge applicable only to a member imposed by the self-regulatory organization. Accordingly, the proposal is effective upon Commission receipt of the filing. At any time within 60 days of the filing of the proposed rule change, the Commission may summarily abrogate such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. 12 10 15 U.S.C. 78s(b)(3)(A)(ii). 11 17 CFR 240.19b-4(f)(2). 12 For purpose of calculating the 60-day period within which the Commission may summarily abrogate the proposed rule change under section 19(b)(3)(C) of the Act, the Commission considers that period to commence on February 14, 2006, the date that the NASD filed Amendment No. 1. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change, as amended, is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission's Internet comment form ( *http://www.sec.gov/rules/sro.shtml* ); or • Send an e-mail to *rule-comments@sec.gov.* Please include File No. SR-NASD-2006-023 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 No. SR-NASD-2006-023. 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 NASD. 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 No. SR-NASD-2006-023 and should be submitted on or before March 16, 2006. For the Commission, by the Division of Market Regulation, pursuant to delegated authority. 13 13 17 CFR 200.30-3(a)(12). J. Lynn Taylor, Assistant Secretary. [FR Doc. E6-2518 Filed 2-22-06; 8:45 am] BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-53325; File No. SR-NASD-2006-021] Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto To Extend the Time for Non-Member Broker/Dealers To Access the Brut and INET Facilities February 16, 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 February 7, 2006, the National Association of Securities Dealers, Inc. (“NASD”), through its subsidiary, The Nasdaq Stock Market, Inc. (“Nasdaq”), filed with the Securities and Exchange Commission (“Commission”) the proposed rule change as described in Items I and II below, which Items have been prepared by Nasdaq. On February 8, 2006, Nasdaq filed Amendment No. 1 to the proposed rule change. 3 Nasdaq filed the proposal as a “non-controversial” proposed rule change pursuant to section 19(b)(3)(A)(iii) of the Act 4 and Rule 19b-4(f)(6) thereunder, 5 which renders it effective upon filing with the Commission. 6 The Commission is publishing this notice to solicit comments on the proposed rule change, as amended, from interested persons. 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b-4. 3 In Amendment No. 1, Nasdaq revised the proposed rule text in order for it to correspond with the existing language of NASD Rule 4901. 4 15 U.S.C. 78s(b)(3)(A)(iii). 5 17 CFR 240.19b-4(f)(6). 6 Nasdaq has asked the Commission to waive the 30-day operative delay required by Rule 19b-4(f)(6)(iii), 17 CFR 240.19b-4(f)(6)(iii). *See* discussion *infra* Section III. I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change Nasdaq proposes to continue to provide, through May 1, 2006, broker/dealers that are not members of NASD access to Nasdaq's Brut and INET Facilities. Nasdaq intends to implement the proposed rule change immediately. Below is the text of the proposed rule change. Proposed new language is in *italics* ; proposed deletions are in [brackets]. 4901. Definitions Unless stated otherwise, the terms described below shall have the following meaning:
(a)through
(h)No Change
(i)The term “Participant” shall mean an NASD member that fulfills the obligations contained in Rule 4902 regarding participation in the System. Until [February 8, 2006] *May 1, 2006* , the term “Participant” shall also include non-NASD broker/dealers that desire to use the System and otherwise meet all other requirements for System participation.
(j)through
(w)No Change 4952. System Participant Registration
(a)Participation in INET requires current registration with the System and is conditioned upon the Participant's initial and continuing compliance with the following requirements:
(1)through
(5)No Change
(6)In addition to the above, on or before [60 days after the System becomes a facility of Nasdaq] *May 1, 2006* , all System Participants shall be members of the Association. The text of the proposed rule change, as amended, is also available on Nasdaq's Internet Web site ( *http://www.nasdaq.com* ), at Nasdaq's principal office, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, Nasdaq 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. Nasdaq 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 the Statutory Basis for, the Proposed Rule Change 1. Purpose Under the current NASD rules, broker/dealers that are not members of NASD may use Nasdaq's Brut and INET systems until February 8, 2006. Nasdaq proposes to modify this provision to allow non-NASD member broker/dealers to use the Brut and INET systems through May 1, 2006. This extension is intended to allow these non-NASD member broker/dealers to have continued access to the Brut and INET systems while they take actions to become members of The Nasdaq Stock Market LLC (“Nasdaq Exchange”). 7 7 The Commission recently approved Nasdaq's application for one of its proposed subsidiaries, The Nasdaq Stock Market LLC, to be registered as a national securities exchange under section 6 of the Act. *See* Securities Exchange Act Release No. 53128 (January 13, 2006), 71 FR 3550 (January 23, 2006) (File No. 10-131) (“Nasdaq Exchange Approval Order”). 2. Statutory Basis Nasdaq believes the proposed rule change is consistent with the provisions of section 15A of the Act, 8 in general, and with section 15A(b)(6) of the Act, 9 in particular, in that it is designed to promote just and equitable principles of trade, to remove impediments to a free and open market and a national market system, and, in general, to protect investors and the public interest. 8 15 U.S.C. 78o-3. 9 15 U.S.C. 78o-3(b)(6). B. Self-Regulatory Organization's Statement on Burden on Competition Nasdaq 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 Nasdaq neither solicited nor received comments on the proposal. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change:
(1)Does not significantly affect the protection of investors or the public interest;
(2)does not impose any significant burden on competition; and
(3)by its terms does not become operative for thirty days from the date on which it was filed, or such shorter time as the Commission may designate if consistent with the protection of investors and the public interest, it has become effective pursuant to section 19(b)(3)(A) of the Act 10 and Rule 19b-4(f)(6) 11 thereunder. 12 10 15 U.S.C. 78s(b)(3)(A). 11 17 CFR 240.19b-4(f)(6). 12 Pursuant to Rule 19b-4(f)(6)(iii), Nasdaq has given the Commission written notice of its intent to file the proposed rule change, along with a brief description and text of the proposed rule change, at least five business days prior to the date on which Nasdaq filed the proposed rule change. *See* 17 CFR 240.19b-4(f)(6)(iii). A proposed rule change filed under Rule 19b-4(f)(6) 13 normally does not become operative prior to thirty days after the date of filing. Nasdaq requests that the Commission waive the 30-day operative delay, as specified in Rule 19b-4(f)(6)(iii), and designate the proposed rule change to become operative immediately to allow continued and uninterrupted access to Nasdaq's Brut and INET trading facilities for non-NASD member broker/dealers and their customers while such broker/dealers take steps to become members of the Nasdaq Exchange before it becomes operational as a national securities exchange. The Commission hereby grants the request. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest because such waiver will allow non-NASD member broker/dealers to continue to participate in Nasdaq's Brut and INET systems without interruption. The Commission notes that by May 1, 2006, all Brut and INET participants must either be NASD members or Nasdaq Exchange members, contingent on whether the Nasdaq Exchange has begun operating as a national securities exchange. In addition, the Commission notes that members of NASD, as well as broker/dealers that are currently not NASD members, will be able to apply to become a Nasdaq Exchange member during the period of transition before the Nasdaq Exchange becomes operational. 14 For these reasons, the Commission designates the proposed rule change as effective and operative immediately. 15 13 17 CFR 240.19b-4(f)(6). 14 *See* Nasdaq Exchange Approval Order, 71 FR at 3554 (referring to recently approved Nasdaq Exchange Rule 1013(a)(6)). 15 For the purposes only of waiving the operative date of this proposal, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. *See* 15 U.S.C. 78c(f). At any time within 60 days of the filing of the proposed rule change, the Commission may summarily abrogate such proposed rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. 16 16 The effective date of the original proposed rule change is February 7, 2006, and the effective date of Amendment No. 1 is February 8, 2006. For purposes of calculating the 60-day period within which the Commission may summarily abrogate the proposed rule change under section 19(b)(3)(C) of the Act, the Commission considers such period to commence on February 8, 2006, the date on which Nasdaq filed Amendment No. 1. *See* 15 U.S.C. 78s(b)(3)(C). IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change, as amended, is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission's Internet comment form ( *http://www.sec.gov/rules/sro.shtml* ); or • Send an e-mail to *rule-comments@sec.gov.* Please include File Number SR-NASD-2006-021 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-NASD-2006-021. 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 Section, 100 F Street, NE., Washington, DC 20549. Copies of such filing also will be available for inspection and copying at the principal office of Nasdaq. 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-NASD-2006-021 and should be submitted on or before March 16, 2006. For the Commission, by the Division of Market Regulation, pursuant to delegated authority. 17 17 17 CFR 200.30-3(a)(12). J. Lynn Taylor, Assistant Secretary. [FR Doc. E6-2520 Filed 2-22-06; 8:45 am] BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-53317; File No. SR-NASD-2005-156] Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto To Modify Fees for the use of Nasdaq's Application Programming Interface Protocol by NASD Members February 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 December 30, 2005, the National Association of Securities Dealers, Inc. (“NASD”), through its subsidiary, The Nasdaq Stock Market, Inc. (“Nasdaq”), 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 prepared by Nasdaq. On January 27, 2006, Nasdaq filed Amendment No. 1 to the proposed rule change. 3 Nasdaq has designated this proposal as establishing or changing a due, fee, or other charge of a self-regulatory organization, pursuant to section 19(b)(3)(A)(ii) of the Act, 4 and Rule 19b-4(f)(2) thereunder, 5 which renders the proposed rule change effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change, as amended, from interested persons. 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b-4. 3 Amendment No. 1 modified the proposal to reflect the transition of the final non-member user of the API protocol in the first week of January 2006. For purposes of calculating the 60-day abrogation period, the Commission considers the period to have commenced on January 27, 2006, the date Nasdaq filed Amendment No. 1. 15 U.S.C. 78s(b)(3)(C). 4 15 U.S.C. 78s(b)(3)(A)(ii). 5 17 CFR 240.19b-4(f)(2). I. Self-Regulatory Organization's Statement of the Terms of the Substance of the Proposed Rule Change Nasdaq proposes to amend NASD Rule 7010 to modify fees for use of Nasdaq's Application Programming Interface (“API”) protocol by NASD members. Nasdaq will implement the proposed rule change on January 1, 2006. The text of the proposed rule change is below. Proposed new language is in *italics* ; proposed deletions are in brackets. 7000. CHARGES FOR SERVICES AND EQUIPMENT 7010. System Services (a)-(e) No change.
(f)Access Services. The following charges are assessed by Nasdaq for connectivity to the Nasdaq Market Center
(NMC)and, where indicated, to Nasdaq's Brut Facility (Brut).
(1)Legacy Nasdaq Workstation TM Service
(A)The following charges shall apply to the receipt of Level 2 or Level 3 Nasdaq Service via equipment and communications linkages prescribed for the Nasdaq Workstation II Service: Service Charge $[2,035] *8,000* /month per service delivery platform (“SDP”) connected via T1 circuits. [$1,000/month per SDP connected via Digital Subscriber Line (“DSL”), plus $1,000 per DSL early termination fee if service is terminated within 60 days of installation]. Display Charge $525/month per logon for the first 150 logons. $200/month for each additional logon. Additional Circuit/SDP Charge $[3,235] *8,000* /month. PD and SDP Maintenance: Monthly maintenance agreement $55/presentation device (“PD”) logon or SDP/month. Hourly fee for maintenance provided without monthly maintenance agreement $195 per hour (two hour minimum), plus cost of parts. ECN Direct Connection $1,200 per port pair per month. (B)—(C) No change. [(D) DSL service
(i)shall be provided solely to NASD members without API logons,
(ii)shall be provided to only one SDP per location, and
(iii)may not be used in connection with SDP T1 circuit connections at the same location. A subscriber with an SDP connected to Nasdaq via T1 circuits that orders DSL on or before June 1, 2004 shall not be required to pay charges under Rule 7040 for initial disconnection of T1 circuits and installation of DSL. In addition, if such a subscriber cancels DSL service within 10 business days of its first date of DSL service, the subscriber shall not be required to pay the early termination fee or charges under Rule 7040 for disconnection of DSL and reinstallation of T1 circuits.] (2)-(4) No change. (g)-(w) No change. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, Nasdaq 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. Nasdaq 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 As described in SR-NASD-2005-002, 6 Nasdaq is in the process of sunsetting its API protocol. Although the API protocol supports a high volume of message traffic, it requires the use of a Service Delivery Platform (“SDP”), a hardware unit located at the subscriber's premises, resulting in comparatively higher communications and infrastructure costs for firms using API. As a result, Nasdaq has developed the Nasdaq Information Exchange or “QIX,” a new proprietary protocol that does not require use of an SDP. Nasdaq believes that QIX offers the benefits of the API protocol but at a significantly reduced cost to its users. QIX has been available for use in production since January 2005. 6 Securities Exchange Act Release No. 51170 (February 9, 2005), 70 FR 7988 (February 16, 2005). For the last ten months, Nasdaq has been working with users of the API protocol to transition them to QIX and/or one of Nasdaq's other telecommunication protocols, the Financial Information Exchange (“FIX”), the Computer-to-Computer Interface (“CTCI”), or internet-based Nasdaq Workstations. Nevertheless, several users of the API are not yet ready to make their transition, and therefore Nasdaq is extending the sunset date into the first quarter of 2006. As the number of API users decreases, however, Nasdaq must spread the significant fixed costs associated with operation of the protocol over a smaller customer base. As a result, an increase in the fees associated with use of the protocol is necessary to allow Nasdaq to recoup a greater portion of its costs. Specifically, effective January 1, 2006, Nasdaq will increase the service charge assessed for each SDP from $2,035 per month to $8,000 per month. Nasdaq will also increase the additional circuit/SDP charge from $3,235 per month to $8,000 per month. As described in NASD Rule 7010(f)(1)(C), this charge is assessed when subscribers make inefficient use of their SDPs and/or the T1 circuits used to connect SDPs to Nasdaq. Nasdaq is, however, eliminating the $1,000 per month charge for SDPs connected to Nasdaq via DSL lines, because all users of such SDPs have transitioned to other access protocols. 7 7 This proposed rule change applies solely to NASD members. The final non-member user of the API protocol transitioned away from the protocol in the first week of January 2006. 2. Statutory Basis Nasdaq believes the proposed rule change is consistent with the provisions of section 15A of the Act, 8 in general, and sections 15A(b)(5) 9 of the Act, in particular, in that it provides for the equitable allocation of reasonable dues, fees, and other charges among members and issuers and other persons using any facility or system which the NASD operates or controls. The proposed rule change will allow Nasdaq to recoup more of the costs associated with continued operation of the API protocol for the benefit of a decreasing number of subscribers. 8 15 U.S.C. 78 *o* -3. 9 15 U.S.C. 78 *o* -3(b)(5). B. Self-Regulatory Organization's Statement on Burden on Competition Nasdaq does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act, as amended. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others Written comments were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The proposed rule change has become effective pursuant to section 19(b)(3)(A)(ii) of the Act 10 and subparagraph (f)(2) of Rule 19b-4 thereunder, 11 because it establishes or changes a due, fee, or other charge imposed by NASD. At any time within 60 days of the filing of the proposed rule change, the Commission may summarily abrogate such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. 10 15 U.S.C. 78s(b)(3)(A)(ii). 11 17 CFR 240.19b-4(f)(2). IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change, as amended, is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission's Internet comment form ( *http://www.sec.gov/rules/sro.shtml* ); or • Send an e-mail to *rule-comments@sec.gov* . Please include File Number SR-NASD-2005-156 on the subject line. Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090. All submissions should refer to File Number NASD-2005-156. 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 the filing also will be available for inspection and copying at the principal offices of NASD. 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 NASD-2005-156 and should be submitted on or before March 16, 2006. For the Commission, by the Division of Market Regulation, pursuant to delegated authority. 12 12 17 CFR 200.30-3(a)(12). J. Lynn Taylor, Assistant Secretary. [FR Doc. E6-2522 Filed 2-22-06; 8:45 am] BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-53316; File No. SR-NASD-2006-017] Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Short Sale Processing in Nasdaq's INET Facility February 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 February 2, 2006, the National Association of Securities Dealers, Inc. (“NASD”), through its subsidiary, The Nasdaq Stock Market, Inc. (“Nasdaq”), filed with the Securities and Exchange Commission (“Commission”) the proposed rule change as described in Items I and II below, which Items have been substantially prepared by Nasdaq. Nasdaq filed the proposed rule change as a “non-controversial” rule change under Rule 19b-4(f)(6) under the Act, 3 which rendered the proposal effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b-4. 3 17 CFR 240.19b-4(f)(6). I. Self-Regulatory Organization's Statement of the Terms of the Substance of the Proposed Rule Change Nasdaq proposes to clarify the method by which its INET facility processes orders to comply with short selling restrictions. Nasdaq would like to implement the proposed rule change immediately. The text of the proposed rule change is available on the NASD's Web site, *http://www.nasd.com* , at the NASD's Office of the Secretary, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, Nasdaq 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. Nasdaq 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 According to the Exchange, Nasdaq's INET System currently provides users the option of having the INET System price adjust and/or cancel short sale orders so as to comply with rules governing short selling. Under the proposal, Nasdaq is proposing to more fully explain the INET System's short sale compliance method and to apply it to all short sale orders entered into its System that are subject to short selling restrictions. As such, all orders to sell short that are subject to a short selling restriction would be processed as follows: For Nasdaq-listed securities, if an order to sell short is entered on a down bid that, if executed upon entry, would violate NASD Rule 3350, the INET System will automatically re-price the order to $0.01 above the current national best bid and enter the order on the book. The INET System would thereafter monitor the order and if the order market becomes marketable, but executing the order would result in a violation of NASD Rule 3350, the INET System would cancel the order off of the book. For non-Nasdaq securities, if an order to sell short is entered that, if executed upon entry, would violate Rule 10a-1 under the Act, 4 the INET System would re-price the order to the next whole minimum price variation above the “last sale” on the consolidated tape and enter the order on the book. The INET System would thereafter monitor the order and if the order becomes marketable, but executing the order would result in a violation of Rule 10a-1 under the Act, 5 the INET System would cancel the order off of the book. 4 17 CFR 240.10a-1. 5 *See id* . The INET System would not cancel or adjust prices for orders to sell short in securities that are not subject to any short selling restriction ( *e.g.* , securities exempted from short selling restrictions by Regulation SHO or any other applicable exemption). Nasdaq notes that the INET System currently provides the short sale price adjustment and/or cancellation process clarified here. Therefore, the NASD believes that adoption of the proposal would ensure that the INET System continues not to execute orders in violation of any applicable short selling restriction. 2. Statutory Basis Nasdaq believes that the proposed rule change is consistent with the Section 15A of the Act, 6 in general, and Section 15A(b)(6) of the Act, 7 in particular, in that it is designed 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 a national market system, and, in general, to protect investors and the public interest. 6 15 U.S.C. 78 *o* -3. 7 15 U.S.C. 78 *o* -3(b)(6). B. Self-Regulatory Organization's Statement on Burden on Competition Nasdaq 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 Nasdaq has neither solicited nor received written comments on the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the proposed rule change:
(i)Does not significantly affect the protection of investors or the public interest;
(ii)does not impose any significant burden on competition; and
(iii)by its terms, does not become operative for 30 days after the date of this filing, or such shorter time as the Commission may designate, if consistent with the protection of investors and the public interest, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act 8 and subparagraph (f)(6) of Rule 19b-4 thereunder. 9 8 15 U.S.C. 78s(b)(3)(A). 9 17 CFR 240.19b-4(f)(6). Nasdaq has requested that the Commission waive the 30-day operative delay period for “non-controversial” proposals and make the proposed rule change effective and operative upon filing. The Commission believes that waiver of the 30-day operative delay is consistent with the protection of investors and the public interest, because the proposed rule change is intended to clarify a process that is already in place, which is intended to ensure that the INET System continues only to execute orders that do not violate any applicable short selling restrictions. For this reason, the Commission designates the proposal to be effective and operative upon filing with the Commission. 10 10 For the purpose only of accelerating the operative date of this proposal, the Commission has considered the proposed rule's impact on efficiency, competition and capital formation. *See* 15 U.S.C. 78c(f). At any time within 60 days of the filing of a proposed rule change, the Commission may summarily abrogate such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission's Internet comment form ( *http://www.sec.gov/rules/sro.shtml* ); or • Send an e-mail to *rule-comments@sec.gov* . Please include File Number SR-NASD-2006-017 on the subject line. Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-NASD-2006-017. 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 also will be available for inspection and copying at the principal office of the NASD. 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-NASD-2006-017 and should be submitted on or before March 16, 2006. 11 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Market Regulation, pursuant to delegated authority. 11 J. Lynn Taylor, Assistant Secretary. [FR Doc. E6-2529 Filed 2-22-06; 8:45 am] BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-53322; File No. SR-OCC-2004-20] Self-Regulatory Organizations; The Options Clearing Corporation; Order Granting Approval of a Proposed Rule Change Relating to a New Risk Management Methodology February 15, 2006. I. Introduction On November 15, 2004, The Options Clearing Corporation (“OCC”) filed with the Securities and Exchange Commission (“Commission”) proposed rule change SR-OCC-2004-20 pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”). 1 Notice of the proposal was published in the **Federal Register** on December 27, 2005. 2 No comment letters were received. For the reasons discussed below, the Commission is granting approval of the proposed rule change. 1 15 U.S.C. 78s(b)(1). 2 Securities Exchange Act Release No. 52975 (December 19, 2005), 70 FR 76487. II. Description The rule change will allow OCC to implement a new risk management methodology to determine the amount of margin assets required to be deposited by a clearing member with respect to each account of that clearing member. The new risk management methodology, the System for Theoretical Analysis and Numerical Simulations, will enhance OCC's ability to measure the risk of the portfolios in a clearing member's accounts more accurately and therefore, will enable OCC to calculate margin requirements more precisely. 3 3 OCC will continue to run its TIMS methodology for purposes of calculating theoretical gains and losses pursuant to Rule 15c3-1a under the Act. 1. The Existing Risk Management Methodology: The Theoretical Intermarket Margining System Currently, OCC applies the Theoretical Intermarket Margining System (“TIMS”) for the calculation of clearing members' daily minimum margin requirements, for the determination of the size of OCC's clearing fund, for the computation of additional margin requirements, and for assessing risk in the Hedge Program. TIMS is a univariate risk management methodology that evaluates historical data of approximately 3,000 underlying assets to identify the expected gain or loss on positions that would occur at ten price points for equity instruments and at twenty price points for non-equity instruments within a range of likely price movements of each underlying interest. TIMS requires that options, futures, and stock loan and borrow positions that have the same underlying interest be categorized into classes and that classes be categorized into unique product groups consisting of one or more related classes. TIMS calculates the total risk of each clearing member account as the sum of the worst scenario outcomes of each product group in the account. TIMS recognizes offsetting positions within each clearing member account but only to the extent that the offsetting positions are in the same product group. Although TIMS has consistently produced sufficient base margin requirements, this methodology has a number of shortcomings that have risk-relevant consequences. The following are examples of these shortcomings: a. Because TIMS requires that each class group belong to only one product group, any offsetting effects among instruments in different product groups are ignored when margin requirements are calculated. This inherent lack of methodological flexibility tends to overestimate portfolio risk thereby imposing unnecessarily high margin requirements on clearing members. b. TIMS assumes perfect correlation of price movements for underlying interests belonging to the same product group. As a result, margin requirements for unhedged product group portfolios are often overstated, and margin requirements for hedged product group portfolios are often understated. c. TIMS calculates the total account risk as the sum of the worst scenario outcomes of all product groups. In that sense, TIMS does not measure the price risk of the total portfolio. Instead, it measures the price risk of the various subportfolios as represented by product groups. Since portfolio risk can never be larger than the sum of the portfolio components' risks, but could be smaller to the extent of any offsetting relationships, TIMS's aggregation of product group risks results in an upwardly biased estimation of a clearing member's portfolio risk. d. TIMS's aggregation methodology often implies an economically impossible correlation (positive or negative) between product groups in an account. Suppose, for example, that an account has a (delta) long position in the broad-based index group and a (delta) short position in the individual equities group. By aggregating the risks in these two groups, TIMS implies that a decline in all broad-based indices could exist simultaneously with a rise in all individual equities—an impossible economic scenario. e. In analyzing historical data, TIMS focuses on a range of potential price movements. However, covering 99% of all potential price movements does not result in coverage of 99% of all profit/loss outcomes, which is the desired goal. Using the TIMS method, some accounts may have margin requirements covering 98% of profit/loss outcomes while others are covered at 99.9%. These small statistical differences can have large dollar implications. 2. The New Risk Management Methodology: The System for Theoretical Analysis and Numerical Simulations STANS preserves TIMS's analysis of the historical price movements of underlying assets and of the correlation of such price movements among underlying assets. However, STANS evaluates price risk on a portfolio level and more accurately evaluates the correspondence of price movements among underlying assets and therefore, is able to calculate margin requirements more accurately than TIMS. STANS is a multivariate risk management methodology that considers the range of likely price movements for each of the approximately 8,000 assets underlying OCC options. STANS measures the historical correlations among the price movements of the different assets. STANS generates simulated returns for all underlying assets based on this historical data, measures the historical price volatility of each of these underlying assets, and evaluates the relationship structure of the entire portfolio. The following are ways in which STANS reduces the imprecision associated with TIMS: a. Because STANS does not use TIMS's product group concept, STANS recognizes the relationship of each asset class to all other asset classes rather than recognizing only the relationships among asset classes in the same product group. Therefore, STANS will more accurately identify offsetting positions, and margin requirements will be adjusted downward accordingly. b. STANS identifies a more realistic correlative relationship among underlying assets than TIMS. STANS does not exclude opposite moves for positively correlated assets. In contrast, price scenarios within the TIMS methodology are all concordant. c. Because STANS eliminates product groups, it is able to evaluate the interrelationships among all instruments in a clearing member's portfolio rather than only within a product group. STANS's estimates of portfolio risk are neither upwardly nor downwardly biased. d. STANS generates a distribution of 10,000 potential profit/loss outcomes for the entire portfolio rather than simply a range of potential price movements. By producing margin requirements that are more precise for every account, STANS ensures all accounts will have coverage for predicted liquidation outcomes at the selected confidence levels. These characteristics will improve the accuracy of margin calculations which should improve the financial stability of OCC and the derivatives markets. In addition, STANS allows for easy integration of various types of non-equity products, such as fixed-income related products and commodities. The implementation of STANS thus facilitates joint risk assessment initiatives that can produce clearing and settlement efficiencies beneficial to investors. To reflect the implementation of STANS in OCC's By-Laws and Rules, OCC will revise most of Rule 601 and will eliminate Rule 602. Revised Rule 601 is conceptual rather than a mechanical, step-wise description of margin requirement calculations. It is therefore more concise than the existing Rule 601. OCC presently calculates margin requirements for equity and non-equity products separately with Rule 601 being applicable to equities and Rule 602 being applicable to non-equities. Because STANS will calculate margin on equity and non-equity products in one integrated set of calculations, the calculation of margin requirements for all products will be as set forth in revised Rule 601. OCC proposes to delete cross-references to Rule 602 as appropriate throughout the Rules. Revised Rule 601(c) contains a basic conceptual description of how under STANS OCC will determine the amount of margin assets a clearing member is required to deposit with OCC. Revised Rule 601(c) uses the concepts of “margin requirement,” “margin assets,” “marking prices,” and “minimum expected liquidating value” to aid in the description of STANS and of margin requirement calculations. Definitions of each of these terms have been included in the amendments to Article I of the By-Laws or Rule 601 as appropriate. OCC will delete terms that were defined in Rule 601(b) that were relevant to TIMS but that are not relevant to STANS. For example, the terms “premium margin” and “risk margin” are deleted. The “margin requirement” as determined using STANS will be at least equal to the “minimum expected liquidating value” of the account if such expected value is less than zero. The “minimum expected liquidating value” may be conceptualized as
(i)the current net asset value of positions in the account ( *i.e.* , what used to be called “premium margin”) plus
(ii)an additional amount sufficient to cover the impact of the largest expected adverse market movement ( *i.e.* , what used to be called “risk margin”). Because STANS does not derive the “minimum expected liquidating value” in this additive way and because STANS is designed to project expected values for margin assets whose prices are not referred to as “premiums,” the old terminology is not appropriate. The definition of “marking price” is quite flexible and allows OCC to use its discretion in determining marking prices and to use different marking prices for the same asset or liability depending upon the purpose for which a marking price is needed. An example of where the latter situation may occur is in the case of stock loan and borrow positions. Marking prices in the stock lending market are determined by the conventions of that market, and OCC would generally observe the prices used in that market for purposes of determining the daily marks passed through OCC between the lender and the borrower. OCC might, however, have a different view of the correct marking price to use for purposes of calculating the risk of those positions in STANS. The purpose of revised Rule 601(e), “Exclusions from Margin Requirement Calculation,” is to identify in one place those positions that are excluded from margin requirement calculations altogether. Previous Rule 601(e) indicated that exercised or expired positions in cleared contracts or stock loan and borrow positions were excluded from margin requirement calculations. Rule 601(a) previously indicated that short positions in option contracts or BOUNDs for which a deposit in lieu of margin has been made were excluded from margin requirement calculations. Rule 614 previously indicated that long positions in cleared securities that have been pledged to a pledgee were excluded from margin requirement calculations. By definition, margin-ineligible stock loan positions and stock borrow positions are excluded from margin requirement calculations. Consolidating these provisions in one place facilitates understanding. The release of margin assets to clearing members as described in previous Rule 601(e) has been revised to be clearer and more concise and is now covered in Rule 601(f). The previous rule contained a somewhat artificial description of margin assets being released under a position-specific determination. Consistent with the more integrated approach of the STANS methodology, revised Rule 601(f) simply states that OCC will permit the release of margin with respect to a clearing member's account if the amount of margin assets in a clearing member's account exceeds the amount of margin assets required to be in the account pursuant to Rule 601 and if any other obligations of the clearing member to OCC have been satisfied. Previous Rule 2111(b) and Rule 2409(b) envisioned that a provisional margin requirement would be calculated with respect to cross-rate foreign currency options and FX Index Options. The provisional margin requirement was intended to ensure that OCC would not release premiums due to an account of a clearing member in a non-U.S. time zone at a time when it was holding insufficient margin to cover a premium debit in a later time zone and/or increased margin requirements resulting from activity in cross-rate and foreign currency index options since the last U.S. Dollar settlement. OCC will eliminate this provisional margin requirement and will instead simply hold any amounts otherwise payable to a clearing member in a different time zone until after the next regular settlement time in the U.S. Experience has shown that clearing members often instruct OCC to credit any cash from these early settlements to their OCC accounts instead of releasing it, and the amounts involved do not justify the costs of administering the more cumbersome procedure of calculating provisional margin requirements. OCC expects that the amount of margin it will collect under STANS will be significantly less than the amount of margin it currently collects under TIMS. This is largely due to the fact that STANS more accurately identifies offsetting positions than TIMS. Accordingly, there would be a corresponding reduction in the amount of clearing fund collected by OCC under STANS because under Chapter X, “Clearing Fund Contributions,” clearing fund is calculated as a percentage of margin. The Division of Market Regulation (“Division”) requested that OCC amend its rules to increase the percentage used to calculate the size of the clearing fund because the Division believes that for the time being the clearing fund should not be significantly reduced. As a result, OCC amended the proposed rule change to amend Chapter X, Rule 1001, “Amount of [Clearing Fund] Contribution,” to increase the minimum percentage used in the clearing fund calculation from 5 percent to 6 percent of average aggregate margin. III. Discussion Section 17A(b)(3)(F) of the Act provides that the rules of a clearing agency should be designed to promote the prompt and accurate clearance and settlement of securities transactions and to assure the safeguarding of securities and funds which are in its custody or control or for which it is responsible. OCC's margin methodology calculates the current replacement cost and market risk associated with a member's positions so that OCC may collect sufficient collateral to complete settlement in the event the member becomes insolvent or otherwise fails to meet its obligations to OCC. OCC's ability to meet its settlement obligations following a member insolvency is an important function of its role as a central counterparty. 4 It is therefore necessary that OCC have an effective methodology for calculating risk-based margin to promote the prompt and accurate clearance and settlement of securities transactions and to assure the safeguarding of securities and funds which are in its custody or control or for which it is responsible. 4 The margin methodology under both TIMS and STANS uses short-term historical returns and return volatilities to calculate the market risk associated with a member's positions. As a result, margin should provide OCC with sufficient collateral to complete settlement under normal market conditions. Very unusual and sudden market moves could result in losses to a member's account that are in excess of the margin on deposit with OCC. If a member becomes insolvent or otherwise fails to meet its obligations to OCC under such circumstances, OCC would access the assets in its clearing fund to complete settlement of the member's trades. The TIMS methodology has been used by OCC since 1991 5 and has become recognized as an industry standard for measuring risk in portfolios comprised of options, futures, and futures on options. However, as discussed above, OCC believes that there are some shortcomings to the TIMS methodology and that the more sophisticated STANS methodology will better measure the market risk in a member's account. One of the main shortcomings of TIMS is that it recognizes only a limited diversification benefit for clearing member accounts by offsetting positions only within the same product group. Further, these offsets are conservative and are not based on a statistical model for the joint behavior of asset returns. STANS, on the other hand, generates simulated returns for all of the positions in the clearing member's account simultaneously. The statistical specification and subsequent simulation in STANS, rather than the ad hoc rule in TIMS, determines the degree of offset for correlated positions. 5 Securities Exchange Act Release Nos. 27394 (October 26, 1989), 54 FR 46175 (November 1, 1989) [File No. SR-OCC-89-12] (Notice of filing for the TIMS proposal) and 28928 (March 1, 1991), 56 FR 9995 (March 8, 1991) (Original order approving the use of TIMS to calculate margin on equity options on a temporary basis). Because STANS is designed to allow a greater amount of offset for diversification than TIMS, most of OCC's members will be required to deposit less margin under STANS than they currently are under TIMS. For instance, the 20 largest accounts at OCC would have exhibited reductions in margin of over 50 percent as of September 2005. This significant reduction reflects the difference between the two methodologies in allowance of a diversification benefit in calculating the risk-based margin of a member's account. It does not reflect a change in the purpose of OCC's margin requirement, which is to provide OCC with sufficient collateral in the event a member becomes insolvent or otherwise fails to meet its obligations to OCC. OCC will collect less margin from its members under STANS because STANS will explicitly model a joint distribution of asset returns in order to better measure risk at the member portfolio level and not because OCC is changing its tolerance for counterparty credit risk. OCC has operated STANS in test mode for more than two years and has reviewed the methodology and the results of test operations with staff of the Commission's Division of Market Regulation (“Division”) during that time. Since June 2003, OCC has been providing information on the statistical and operational features of the STANS methodology to staff of the Office of Prudential Supervision and Risk Analysis of the Division. To become comfortable with the STANS methodology, the Division requested that OCC produce various graphs, simulations, and spreadsheets evidencing STANS's ability to calculate margin requirements more accurately than TIMS. As a result of these reviews, the Commission is of the opinion that STANS is consistent with the practices of other sophisticated market participants in measuring the risk associated with options portfolios. Although the Commission is satisfied that STANS has performed in test mode as expected thus far, it is requiring OCC to take two measures with respect to using the new methodology. First, OCC will continue to provide the Division with information regarding the performance of STANS. OCC will provide the Division with quarterly reports summarizing any instances in which a member's account experienced a loss that exceeded the margin requirement calculated by STANS and the magnitude of any such losses. Second, OCC has amended its clearing fund formula so that the amount of clearing fund, which is a percentage of average daily total margin, will not initially decrease with the implementation of STANS and the decrease in margin requirements. Because the clearing fund serves as a resource in the event of insufficient margin deposits, the Commission does not believe it is prudent at this time for the size of the clearing fund to significantly decrease at the same time margin requirements are significantly decreased. Therefore, OCC is increasing its clearing fund calculation so that the clearing fund will be 6 percent, instead of 5 percent, of aggregate daily total margin. Accordingly, because the Commission believes the STANS methodology is designed to provide OCC with sufficient margin to protect itself in the event of a member insolvency or other inability to satisfy its obligations to OCC, the Commission finds that OCC's proposed rule change implementing STANS and revising its clearing fund calculation is designed to promote the prompt and accurate clearance and settlement of securities transactions and to assure the safeguarding of securities and funds which are in OCC's custody or control or for which it is responsible. IV. Conclusion On the basis of the foregoing, the Commission finds that the proposed rule change is consistent with the requirements of the Act and in particular with the requirements of Section 17A of the Act and the rules and regulations thereunder. *It is therefore ordered,* pursuant to Section 19(b)(2) of the Act, that the proposed rule change (File No. SR-OCC-2004-20) be and hereby is approved. For the Commission by the Division of Market Regulation, pursuant to delegated authority. 6 6 17 CFR 200.30-3(a)(12). J. Lynn Taylor, Assistant Secretary. [FR Doc. E6-2519 Filed 2-22-06; 8:45 am] BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-53315; File No. SR-PCX-2006-09] Self-Regulatory Organizations; Pacific Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Extending the SizeQuote Mechanism Pilot Program for a Period of One Year February 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 February 6, 2006, the Pacific Exchange, Inc. (“PCX” or “Exchange”) filed with the Securities and Exchange Commission (“Commission”) the proposed rule change as described in Items I and II below, which Items have been prepared by PCX. The Exchange filed the proposal as a “non-controversial” proposed rule change pursuant to section 19(b)(3)(A) of the Act 3 and Rule 19b-4(f)(6) thereunder, 4 which renders it effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b-4. 3 15 U.S.C. 78s(b)(3)(A). 4 17 CFR 240.19b-4(f)(6). I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change PCX proposes to amend its rules in order to extend the SizeQuote Mechanism Pilot Program (“Pilot Program”) contained in PCX Rule 6.47(g), for a one-year period ending February 15, 2007. The text of the proposed rule change is available on the Exchange's Web site ( *http://www.pacificex.com* ), at the Exchange's Office of the Secretary and at the Commission. 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 PCX 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 purpose of this proposal is to extend for one year the Exchange's SizeQuote Mechanism Pilot Program (“Pilot Program”). The current Pilot Program, established when the PCX filed SR-PCX-2005-35, 5 was effective upon filing, and expires on February 15, 2006. At the time SR-PCX-2005-35 was filed, the Exchange represented that at the completion of the Pilot Program the PCX would provide to the Commission a report summarizing the effectiveness of the SizeQuote program. While the Exchange believes that the SizeQuote Mechanism can be an effective tool for Floor Brokers to use while executing large size orders in open outcry, the mechanism has not been used frequently enough to supply sufficient evidence to evaluate the effectiveness of the Pilot Program. In order to allow for additional time to compile sufficient evidence as to the effectiveness of the Pilot Program, the PCX proposes to extend the Pilot Program for a one-year period ending February 15, 2007. At the end of the extended Pilot Program the PCX feels it will be able to supply the Commission with a report summarizing the effectiveness of the program. 5 *See* Securities Exchange Act Release No. 51576 (April 19, 2005), 70 FR 21488 (April 26, 2005). 2. Basis The Exchange believes that the proposed rule change is consistent with section 6(b) of the Act, 6 in general, and furthers the objectives of section 6(b)(5) of the Act, 7 in particular, in that it is designed to facilitate transactions in securities, to promote just and equitable principles of trade and to protect investors and the public interest. 6 15 U.S.C. 78f(b). 7 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 Written comments on the proposed rule change were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change does not:
(i)Significantly affect the protection of investors or the public interest;
(ii)Impose any significant burden on competition; and
(iii)Become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to section 19(b)(3)(A) of the Act 8 and Rule 19b-4(f)(6) thereunder. 9 At any time within 60 days of the filing of the proposed rule change, the Commission may summarily abrogate such rule change if it appears to the Commission such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. 8 15 U.S.C. 78s(b)(3)(A). 9 17 CFR 240.19b-4(f)(6). Pursuant to Rule 19b-4(f)(6)(iii) under the Act, the Exchange is required to give the Commission written notice of its intent to file the proposed rule change, along with a brief description and text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. The Commission notes that the Exchange provided notice of the filing at least five business days prior to the date of filing. A proposed rule change filed under section 19b-4(f)(6) normally may not become operative prior to 30 days after the date of its filing. 10 Rule 19b-4(f)(6)(iii) permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. 11 PCX has requested that the Commission waive the 30-day operative delay. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest so that the Pilot Program may continue until February 15, 2007 without interruption. 12 10 17 CFR 240.19b-4(f)(6)(iii). 11 *Id.* 12 For purposes only of waiving the 30-day operative delay, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. *See* 15 U.S.C. 78c(f). IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission's Internet comment form ( *http://www.sec.gov/rules/sro.shtml* ); or • Send an e-mail to *rule-comments@sec.gov.* Please include File Number SR-PCX-2006-09 on the subject line. Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-PCX-2006-09. 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 Section, 100 F Street, NE., Washington, DC 20549. Copies of such 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-PCX-2006-09 and should be submitted on or before March 16, 2006. For the Commission, by the Division of Market Regulation, pursuant to delegated authority. 13 13 17 CFR 200.30-3(a)(12). J. Lynn Taylor, Assistant Secretary. [FR Doc. E6-2535 Filed 2-22-06; 8:45 am] BILLING CODE 8010-01-P SMALL BUSINESS ADMINISTRATION [Disaster Declaration #10299 and #10300] Connecticut Disaster Number CT-00002 AGENCY: Small Business Administration. ACTION: Amendment 1. SUMMARY: This is an amendment of the Administrative declaration of a major disaster for the State of Connecticut, dated 12/21/2005. *Incident:* Severe Flooding. *Incident Period:* 10/14/2005 through 10/15/2005. *Effective Date:* 02/13/2006. *Physical Loan Application Deadline Date:* 03/23/2006. *EIDL Loan Application Deadline Date:* 09/21/2006. ADDRESSES: Submit completed loan applications to: U.S. Small Business Administration, National Processing And Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155. FOR FURTHER INFORMATION CONTACT: A. Escobar, Office of Disaster Assistance, U.S. Small Business Administration, 409 3rd Street, SW., Suite 6050, Washington, DC 20416. SUPPLEMENTARY INFORMATION: The notice of an Administrative declaration for the State of Connecticut, dated 12/21/2005, is hereby amended to extend the deadline for filing applications for physical damages as a result of this disaster to 03/23/2006. All other information in the original declaration remains unchanged. (Catalog of Federal Domestic Assistance Numbers 59002 and 59008) Dated: February 13, 2006. Hector V. Barreto, Administrator. [FR Doc. E6-2536 Filed 2-22-06; 8:45 am] BILLING CODE 8025-01-P DEPARTMENT OF STATE [Public Notice 5267] Notice of Renewal for the Charter of the Secretary of State's Advisory Committee on Leadership and Management Under the Name of the Secretary of State's Advisory Committee on Transformational Diplomacy SUMMARY: Pursuant to Section 9(a) of the Federal Advisory Committee Act (Pub. L. 92-463) and under the general authority of the Secretary and the Department of State, as derived from the President's constitutional authority and as set forth in sections 2656 and 2651a of Title 22 of the United States Code and other relevant statutes, this notice announces the renewal of the Secretary of State's Advisory Committee on Leadership and Management and amends the title as the Secretary of State's Advisory Committee on Transformational Diplomacy. The Advisory Committee was created as a vehicle to address leadership and management issues pertaining to transformational diplomacy as they arise and not in response to a specific issue or pending concern. Members of the Advisory Committee may include former senior U.S. government officials and members of Congress and representatives of corporations, not-for-profit non-governmental organizations, professional associations, public policy or academic institutions, and other experts as needed. All meetings of this Committee will be published ahead of time in the **Federal Register** . Additionally, the establishment of the Secretary of State's Advisory Committee on Transformational Diplomacy is essential to the conduct of Department of State business, and is in the public interest. Further information regarding this committee may be obtained from Madelyn S. Marchessault, Office of Management Policy, U.S. Department of State, Washington, DC 20520, phone
(202)647-1068. Dated: February 7, 2006. Marguerite Coffey, Acting Director, Office of Management Policy, Department of State. [FR Doc. E6-2591 Filed 2-22-06; 8:45 am] BILLING CODE 4710-35-P DEPARTMENT OF STATE [Public Notice 5306] Meeting of Advisory Committee on International Communications and Information Policy The Department of State announces the next meeting of its Advisory Committee on International Communications and Information Policy (ACICIP) to be held on Thursday, March 30, 2006, from 10 a.m. to 12:30 p.m., in the Loy Henderson Auditorium of the Harry S. Truman Building of the U.S. Department of State. The Truman Building is located at 2201 C Street, NW., Washington, DC 20520. The committee provides a formal channel for regular consultation and coordination on major economic, social and legal issues and problems in international communications and information policy, especially as these issues and problems involve users of information and communications services, providers of such services, technology research and development, foreign industrial and regulatory policy, the activities of international organizations with regard to communications and information, and developing country issues. The meeting will be led by ACICIP Chair Mr. Richard E. Wiley of Wiley Rein & Fielding LLP. Ambassador David A. Gross, Deputy Assistant Secretary and U.S. Coordinator for International Communications and Information Policy, and other senior U.S. Government officials will address the meeting. The main focus of the event will be to discuss U.S. Government and private sector initiatives aimed at development of capacity in the information and communications technologies
(ICT)sector, and the role of ICT for development, the World Telecom Development Conference, the Digital Freedom Initiative, and activities of the U.S. Telecommunications Training Institute. Discussion of the new Global Internet Freedom Task Force as well as follow-up to the November World Summit on the Information Society will also be on the agenda. Members of the public may attend these meetings. While the meeting is open to the public, admittance to the Department of State building is only by means of a pre-arranged clearance list. In order to be placed on the pre-clearance list, please provide your name, title, company, social security number, date of birth, and citizenship to Robert M. Watts at *wattsrm@state.gov* no later than 5 p.m. on Tuesday, March 28, 2006. All attendees for this meeting must use the 23rd Street entrance. One of the following valid ID's will be required for admittance: any U.S. driver's license with photo, a passport, or a U.S. government agency ID. Non-U.S. government attendees must be escorted by Department of State personnel at all times when in the building. For further information, please contact Robert M. Watts, Executive Secretary of the Committee, at
(202)647-5820 or by e-mail at *wattsrm@state.gov.* Dated: February 16, 2006. Robert M. Watts, Executive Secretary, ACICIP, Department of State. [FR Doc. E6-2580 Filed 2-22-06; 8:45 am] BILLING CODE 4710-07-P DEPARTMENT OF STATE [Delegation of Authority No. 288] Delegation of Authority to the Global AIDS Coordinator Under the FY 2005 Foreign Operations Export Financing and Related Programs Appropriations Act By virtue of the authority vested in me by the laws of the United States including by the Foreign Assistance Act of 1961, as amended (22 U.S.C. 2152 *et seq.* ), section 1 of the State Department Basic Authorities Act of 1956, as amended (22 U.S.C. 2651a), and Delegation of Authority Number 245 of April 23, 2001, State Department Delegation of Authority No. 145 of February 4, 1980, as amended, is hereby further amended as follows: *Section 1:* Section 1(p) is restated as follows: “(p) To the Global AIDS Coordinator: “(1) Those functions in the United States Leadership Against HIV/AIDS, Tuberculosis and Malaria Act of 2003 (P.L. 108-25) (Act), as amended, except amendments made by that Act, that were conferred upon the President and delegated to the Secretary of State; “(2) The functions conferred upon the Secretary of State by Section 525 of the FY 2005 Foreign Operations Export Financing And Related Programs Appropriations Act (Pub. L. 108-447).” *Section 2:* Notwithstanding any provision of this Delegation of Authority, the Secretary of State and Deputy Secretary of State may at any time exercise any function delegated by this delegation of authority. This delegation shall be published in the **Federal Register** . Dated: February 6, 2006. Robert B. Zoellick, Deputy Secretary of State, Department of State. [FR Doc. E6-2592 Filed 2-22-06; 8:45 am] BILLING CODE 4710-10-P DEPARTMENT OF TRANSPORTATION Office of the Secretary Aviation Proceedings, Agreements Filed the Week Ending February 3, 2006 The following Agreements were filed with the Department of Transportation under the Sections 412 and 414 of the Federal Aviation Act, as amended (49 U.S.C. 1382 and 1384) and procedures governing proceedings to enforce these provisions. Answers may be filed within 21 days after the filing of the application. *Docket Number:* OST-2006-23855. *Date Filed:* February 3, 2006. *Parties:* Members of the International Air Transport Association. *Subject:* TC3 South East Asia South—Asian Subcontinent Singapore, 21 November-30 November 2005 *Intended effective date:* 1 April 2006 (Memo 0933). *Minutes:* TC3 South East Asia—South Asian Subcontinent Singapore, 21 November-30 November 2005 *Intended effective date:* 1 April 2006 (Memo 0943). *Tables:* TC3 South East Asia—South Asian Subcontinent Singapore, 21 November-30 November 2005 *Intended effective date:* 1 April 2006 (Memo 0380). *Docket Number:* OST-2006-23852 *Date Filed:* February 3, 2006. *Parties:* Members of the International Air Transport Association. *Subject:* TC3 Within South Asian Subcontinent Singapore, 21 November-30 November 2005. *Intended effective date:* 1 April 2006 (Memo 0931). *Minutes:* TC3 Within South Asian Subcontinent Singapore, 21 November-30 November 2005. *Intended effective date:* 1 April 2006 (Memo 0943). *Tables:* TC3 Within South Asian Subcontinent Singapore, 21 November-30 November 2005. *Intended effective date:* 1 April 2006 (Memo 0381). *Docket Number:* OST-2006-23853. *Date Filed:* February 3, 2006. *Parties:* Members of the International Air Transport Association. *Subject:* T TC3 Japan, Korea South Asian Subcontinent Singapore, 21 November-30 November 2005. *Intended effective date:* 1 April 2006 (Memo 0932). *Minutes:* TC3 Within South Asian Subcontinent Singapore, 21 November-30 November 2005. *Intended effective date:* 1 April 2006 (Memo 0943). *Tables:* TC3 Within South Asian Subcontinent Singapore, 21 November-30 November 2005. *Intended effective date:* 1 April 2006 (Memo 0382). *Docket Number:* OST-2006-23826. *Date Filed:* February 2, 2006. *Parties:* Members of the International Air Transport Association. *Subject:* TC3 Japan, Korea—South West Pacific except between Korea (Rep. of) and American Samoa Singapore, 21 November-30 November 2005. *Intended effective date:* 1 April 2006 (Memo 0925). *Minutes:* TC3 Japan, Korea—South West Pacific except between Korea (Rep. of) and American Samoa Singapore, 21 November-30 November 2005 (Memo 0943). *Fares:* TC3 Japan, Korea—South West Pacific except between Korea (Rep. of) and American Samoa Singapore, 21 November-30 November 2005. Specified fare tables. *Intended effective date:* 1 April 2006 (Memo 0385). *Docket Number:* OST-2006-23828. *Date Filed:* February 2, 2006. *Parties:* Members of the International Air Transport Association. *Subject:* TC3 Within South West Pacific except between French Polynesia and American Samoa Singapore, 21 November-30 November 2005. *Intended effective date:* 1 April 2006 (Memo 0927). *Minutes:* TC3 Within South West Pacific except between French Polynesia and American Samoa Singapore, 21 November-30 November 2005 (Memo 0943). *Fares:* TC3 Within South West Pacific except between French Polynesia and American Samoa. *Intended effective date:* 1 April 2006. *Docket Number:* OST-2006-23829. *Date Filed:* February 2, 2006. *Parties:* Members of the International Air Transport Association. *Subject:* TC3 Within South West Pacific between French Polynesia and American Samoa Singapore, 21 November-30 November 2005. *Intended effective date:* 1 April 2006 (Memo 0928). *Minutes:* TC3 Within South West Pacific between French Polynesia and American Samoa. *Fares:* Singapore, 21 November-30 November 2005 (Memo 0943). TC3 Within South West Pacific between French Polynesia and American Samoa Singapore, 21 November-30 November 2005 (Memo 0378). *Intended effective date:* 1 April 2006. *Docket Number:* OST-2006-23827. *Date Filed:* February 2, 2006. *Parties:* Members of the International Air Transport Association. *Subject:* TC3 Japan, Korea—South West Pacific between Korea and American Samoa Singapore, 21 November-30 November 2005. *Intended effective date:* 1 April 2006 (Memo 0926). *Minutes:* TC3 Japan, Korea—South West Pacific between Korea and American Samoa Singapore, 21 November-30 November 2005 (Memo 0943). *Fares:* TC3 Japan, Korea—South West Pacific between Korea and American Samoa Singapore, 21 November-30 November 2005. Specified fare tables. *Intended effective date:* 1 April 2006 (Memo 0385). *Docket Number:* OST-2006-23830. *Date Filed:* February 2, 2006. *Parties:* Members of the International Air Transport Association. *Subject:* TC3 Areawide Singapore, 21 November-30 November 2005. *Intended effective date:* 1 April 2006 (Memo 0929). *Minutes:* TC3 Areawide. Singapore, 21 November-30 November 2005 (Memo 0943) *Technical Correction:* TC3 Areawide Singapore, 21 November-30 November 2005. *Intended effective date:* 1 April 2006 (Memo 0940). *Docket Number:* OST-2006-23805. *Date Filed:* February 1, 2006. *Parties:* Members of the International Air Transport Association. *Subject:* TC3 Within South East Asia except between Malaysia and Guam Singapore, 21 November-30 November 2005. *Intended effective date:* 1 April 2006 (Memo 0921). *Minutes:* TC3 Japan, Korea South East Asia between Korea (Rep. of) and Guam, Northern Mariana Islands Singapore, 21 November-30 November 2005 (Memo 0943). *Fares:* TC3 Within South East Asia except between Malaysia and Guam Singapore, 21 November-30 November 2005. Specified fare tables. *Intended effective date:* 1 April 2006 (Memo 0377). *Docket Number:* OST-2006-23806 *Date Filed:* February 1, 2006. *Parties:* Members of the International Air Transport Association. *Subject:* TC3 Within South East Asia from Malaysia to Guam Singapore, 21 November-30 November 2005 *Intended Effective Date:* 1 April 2006 (Memo 0922). *Minutes:* TC3 Within South East Asia from Malaysia to Guam Singapore, 21 November-30 November 2005 (Memo 0943) *Fares:* TC3 Within South East Asia from Malaysia to Guam Singapore, 21 November-30 November 2005 Specified Fare Tables *Intended effective date:* 1 April 2006 (Memo 0377). [Docket Number OST-2006-23808] *Date Filed:* February 1, 2006. *Parties:* Members of the International Air Transport Association. *Subject:* TC3 South East Asia—South West Pacific except between Malaysia and American Samoa Singapore, 21 November-30 November 2005 *Intended effective date:* 1 April 2006 (Memo 0923). *Minutes:* T TC3 South East Asia—South West Pacific except between Malaysia and American Samoa Singapore, 21 November-30 November 2005 (Memo 0943) *Fares:* TC3 South East Asia—South West Pacific except between Malaysia and American Samoa Singapore, 21 November-30 November 2005 Specified Fare Tables *Intended effective date:* 1 April 2006 (Memo 0383). [Docket Number OST-2006-23797] *Date Filed:* January 31, 2006. *Parties:* Members of the International Air Transport Association. *Subject:* TC3 Japan, Korea—South East Asia between Korea (Rep. of) and Guam, Northern Mariana Islands Singapore, 21 November-30 November 2005 *Intended effective date:* 1 April 2006 (Memo 0920). *Minutes:* TC3 Japan, Korea—South East Asia between Korea (Rep. of) and Guam, Northern Mariana Islands Singapore, 21 November-30 November 2005 (Memo 0943) *Fares:* TC3 Japan-Korea Singapore, 21 November-30 November 2005 Specified Fare Tables *Intended effective date:* 1 April 2006 (Memo 0384). [Docket Number OST-2006-23790] *Date Filed:* January 31, 2006. *Parties:* Members of the International Air Transport Association. *Subject:* TC3 Japan-Korea Singapore, 21 November-30 November 2005 *Intended effective date:* 1 April 2006 (Memo 0918). *Minutes:* TC3 Japan-Korea Singapore, 21 November-30 November 2005 (Memo 0943) *Fares:* TC3 Japan-Korea Singapore, 21 November-30 November 2005 Specified Fare Tables (Memo 0379) *Correction:* TC3 Japan-Korea Singapore, 21-30 November 2005 *Intended effective date:* 1 April 2006 (Memo 0942). TC3 Japan-Korea Singapore, 21-30 November 2005 *Intended effective date:* 1 April 2006 (Memo 0387). [Docket Number OST-2006-23791] *Date Filed:* January 31, 2006. *Parties:* Members of the International Air Transport Association. *Subject:* TC3 Japan, Korea-South East Asia except between Korea (Rep. of) and Guam, Northern Mariana Islands Singapore, 21 November-30 November 2005 *Intended effective date:* 1 April 2006 (Memo 0919) *Minutes:* TC3 Japan-Korea Singapore, 21 November-30 November 2005 (Memo 0943) *Fares:* TC3 Japan-Korea Singapore, 21 November-30 November 2005 Specified fare tables *Intended effective date:* 1 April 2006 (Memo 0384). Renee V. Wright, Program Manager, Docket Operations, Federal Register Liaison. [FR Doc. E6-2540 Filed 2-22-06; 8:45 am] BILLING CODE 4910-62-P DEPARTMENT OF TRANSPORTATION Office of the Secretary Notice of Applications for Certificates of Public Convenience and Necessity and Foreign Air Carrier Permits Filed Under Subpart B (Formerly Subpart Q) during the Week Ending February 3, 2006 The following Applications for Certificates of Public Convenience and Necessity and Foreign Air Carrier Permits were filed under Subpart B (formerly Subpart Q) of the Department of Transportation's Procedural Regulations ( *See* 14 CFR 301.201 *et seq.* ). The due date for Answers, Conforming Applications, or Motions To Modify Scope are set forth below for each application. Following the Answer period DOT may process the application by expedited procedures. Such procedures may consist of the adoption of a show-cause order, a tentative order, or in appropriate cases a final order without further proceedings. *Docket Number:* OST-2006-23863 *Date Filed:* February 3, 2006. *Due Date for Answers, Conforming Applications, or Motion To Modify Scope:* February 24, 2006. *Description:* Application of Luzair-Transportes Aereos, S.A. requesting a foreign air carrier permit authorizing it to engage in charter foreign air transportation of persons, property and mail between a point or points in Portugal and a point or points in the United States and between points in the United States and points in third countries as authorized by and in accordance with the provisions of the “Open Skies” Air Transport agreement entered into by the Governments of Portugal and the United States. Renee V. Wright, Program Manager, Docket Operations, Federal Register Liaison. [FR Doc. E6-2539 Filed 2-22-06; 8:45 am] BILLING CODE 4910-62-P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration
(FAA)Notice of Opportunity for Public Comment on Surplus Property Release at Craig Field Airport, Selma, AL AGENCY: Federal Aviation Administration (FAA), DOT. ACTION: Notice of intent to rule on land release request. SUMMARY: Under the provisions of Title 49, U.S.C. Section 47153(c), notice is being given that the FAA is considering a request from the Craig Field Airport and Industrial Authority to waive the requirement that a 0.93-acre parcel of surplus property, located at the Craig Field Airport, be used for aeronautical purposes. DATES: Comments must be received on or before March 27, 2006. ADDRESSES: Comments on this notice may be mailed or delivered in triplicate to the FAA at the following address: Jackson Airports District Office, 100 West Cross Street, Suite B, Jackson, MS 39208-2307. In addition, one copy of any comments submitted to the FAA must be mailed or delivered to Mr. Menzo W. Driskell, Executive Director of the Craig Field Airport and Industrial Authority at the following address: Craig Field and Industrial Authority, 48 Fifth Street; Craig Field Industrial Park, Selma, AL 36701. FOR FURTHER INFORMATION CONTACT: Mr. Roderick T. Nicholson, Program Manager, Jackson Airports District Office, 100 West Cross Street, Suite B, Jackson, MS 39208-2307,
(601)664-9884. The land release request may be reviewed in person at this same location. SUPPLEMENTARY INFORMATION: The FAA is reviewing a request by the Craig Field Airport and Industrial Authority to release 0.93 acres of surplus property at the Craig Field Airport. The property will be purchased by the Alabama Power Company, which is a public utility company. The property is currently agricultural. The net proceeds from the sale of this property will be used for airport purposes. Any person may inspect the request in person at the FAA office listed above under FOR FURTHER INFORMATION CONTACT . In addition, any person may, upon request, inspect the request, notice and other documents germane to the request in person at the City of Selma. Issued in Jackson, Mississippi on February 15, 2006. Rans D. Black, Manager, Jackson Airports District Office, Southern Region. [FR Doc. 06-1643 Filed 2-22-06; 8:45 am]
Connectionstraces to 8
8 references not yet in our index
  • 17 CFR 240.19
  • 17 CFR 19
  • 15 USC 78
  • 17 CFR 240.10
  • Pub. L. 92-463
  • Pub. L. 108-447
  • 49 USC 1382
  • 14 CFR 301.201
Citation graph
cites case law
Notices
Amendment 1
U.S.C.§ 78s
U.S.C.§ 78f
U.S.C.§ 552
C.F.R.§ 200.30-3
U.S.C.§ 78c
U.S.C.§ 78o–3
U.S.C.§ 2152
U.S.C.§ 2651a
Cite17 CFR 240.19
Cite17 CFR 19
Cite15 USC 78
Cite17 CFR 240.10
Cites 16 · showing 12Cited by 0 across 0 sources
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