Notices. Request for comments

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BILLING CODE 7555-01-M NUCLEAR REGULATORY COMMISSION Advisory Committee on Reactor Safeguards Subcommittee Meeting on Power Uprates; Notice of Meeting The ACRS Subcommittee on Power Uprates will hold a meeting on March 15-16, 2006, at the Hyatt Regency Bethesda, One Bethesda Metro Center, Bethesda, Maryland 20814 in the Cabinet/Judiciary Room. The agenda for the subject meeting shall be as follows: *Wednesday, March 15, 2006—8:30 a.m. until the conclusion of business.* *Thursday, March 16, 2006—8:30 a.m. until the conclusion of business.* The Subcommittee will review the application for a 17% power uprate for the R.

E. Ginna Nuclear Power Plant. The Subcommittee will hear presentations by and hold discussions with representatives of the NRC staff, their contractors, Constellation Energy and other interested persons regarding this matter. The Subcommittee will gather information, analyze relevant issues and facts, and formulate proposed positions and actions, as appropriate, for deliberation by the full Committee. Members of the public desiring to provide oral statements and/or written comments should notify the Designated Federal Official, Mr.

Ralph Caruso (Telephone: 301-415-8065) five days prior to the meeting, if possible, so that appropriate arrangements can be made. Electronic recordings will be permitted. Signs will not be permitted in the meeting room. Further information regarding this meeting can be obtained by contacting the Designated Federal Official between 7:30 a.m. and 4:15 p.m. (e.t). Persons planning to attend this meeting are urged to contact the above named individual at least two working days prior to the meeting to be advised of any potential changes to the agenda.

Dated: February 24, 2006. Cayetano Santos, Acting Branch Chief, ACRS/ACNW. [FR Doc. E6-3039 Filed 3-2-06; 8:45 am] BILLING CODE 7590-01-P NUCLEAR REGULATORY COMMISSION Advisory Committee on Reactor Safeguards, Subcommittee Meeting on Thermal-Hydraulic Phenomena; Notice of Meeting The ACRS Subcommittee on Thermal-Hydraulic Phenomena will hold a meeting on March 14, 2006 at the Hyatt Regency Bethesda, One Bethesda Metro Center, Bethesda, Maryland 20814 in the Waterford Room. The entire meeting will be open to public attendance, with the exception of portions that may be closed to discuss General Electric

(GE)proprietary information pursuant to 5 U.S.C. 552b

(c)(4). The agenda for the subject meeting shall be as follows: Tuesday, March 14, 2006-8:30 a.m. Until the Conclusion of Business The Subcommittee will review the staff Safety Evaluation Report related to the use of TRACG to evaluate stability in the ESBWR. The Subcommittee will hear presentations by and hold discussions with representatives of the NRC staff, their contractors, GE and other interested persons regarding this matter. The Subcommittee will gather information, analyze relevant issues and facts, and formulate proposed positions and actions, as appropriate, for deliberation by the full Committee. Members of the public desiring to provide oral statements and/or written comments should notify the Designated Federal Official, Mr. Ralph Caruso (Telephone: 301-415-8065) five days prior to the meeting, if possible, so that appropriate arrangements can be made. Electronic recordings will be permitted only during those portions of the meeting that are open to the public. Further information regarding this meeting can be obtained by contacting the Designated Federal Official between 7:30 a.m. and 4:15 p.m. (ET). Persons planning to attend this meeting are urged to contact the above named individual at least two working days prior to the meeting to be advised of any potential changes to the agenda. Dated: February 24, 2006. Cayetano Santos, Acting Branch Chief, ACRS/ACNW. [FR Doc. E6-3040 Filed 3-2-06; 8:45 am] BILLING CODE 7590-01-P OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE Trade Policy Staff Committee; Request for Public Comment on Review of Employment Impact of a Proposed Free Trade Agreement Between the United States and Korea AGENCIES: Office of the United States Trade Representative; Department of Labor. ACTION: Request for comments. SUMMARY: The Trade Policy Staff Committee

(TPSC)gives notice that the Office of the United States Trade Representative

(USTR)and the Department of Labor (Labor) are initiating a review of the impact of a proposed free trade agreement

(FTA)between the United States and the Republic of Korea (Korea) on U.S. employment, including labor markets. This notice seeks written public comment on potentially significant sectoral or regional employment impacts (both positive and negative) in the United States as well as other likely labor market impacts of the FTA. DATES: USTR and Labor will accept any comments received during the course of the negotiation of the FTA. However, comments should be received by noon, March 31, 2006 to be assured of timely consideration in the preparation of the report. ADDRESSES: Submissions by electronic mail: *FR0611@ustr.eop.gov.* Submissions by facsimile: Gloria Blue, Executive Secretary, Trade Policy Staff Committee, at

(202)395-6143. FOR FURTHER INFORMATION CONTACT: For procedural questions concerning public comments, contact Gloria Blue, Executive Secretary, TPSC, Office of the USTR, 1724 F Street, NW., Washington, DC 20508, telephone

(202)395-3475. Substantive questions concerning the employment impact review should be addressed to Greg Schoepfle, Acting Director, Office of International Economic Affairs, Bureau of International Labor Affairs, U.S. Department of Labor, 200 Constitution Avenue, NW., Washington, DC 20210, telephone

(202)693-4887; or Lewis Karesh, Assistant U.S. Trade Representative for Labor, Office of the United States Trade Representative, 600 17th St., NW., Washington, DC 20508, telephone

(202)395-6120. SUPPLEMENTARY INFORMATION: 1. Background Information In accordance with section 2104 of the Trade Act of 2002 (Trade Act) (19 U.S.C. 3804), on February 2, 2006, the United States Trade Representative notified the Congress of the President's intent to initiate FTA negotiations with Korea. On February 2, 2006, the United States Trade Representative also requested the U. S. International Trade Commission

(ITC)to provide advice on probable economic effects of an FTA. In addition, USTR published a notice in the **Federal Register** soliciting views from the public on the negotiations in general, and the TPSC will hold a public hearing on March 14, 2006. The United States intends to begin negotiations with Korea in May 2006. 2. Employment Impact Review Section 2102(c)(5) of the Trade Act (19 U.S.C. 3802(c)(5)) directs the President to “review the impact of future trade agreements on United States employment, including labor markets, modeled after Executive Order 13141 to the extent appropriate in establishing procedures and criteria, report to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate on such review, and make that report available to the public.” USTR and Labor will conduct the employment reviews through the TPSC. The employment impact review will be based on the following elements, which are modeled to the extent appropriate after those in EO 13141. The review will be:

(1)Written;

(2)initiated through a notice in the **Federal Register** soliciting public comment and information on the employment impact of the FTA in the United States;

(3)made available to the public in draft form for public comment, to the extent practicable; and

(4)made available to the public in final form. Comments may be submitted on potentially significant sectoral or regional employment impacts (both positive and negative) in the United States as well as other likely labor market impacts of the FTA. Persons submitting comments should provide as much detail as possible in support of their submissions. 3. Requirements for Submissions In order to ensure prompt and full consideration of responses, the TPSC strongly urges and prefers electronic (e-mail) submissions in response to this notice. In the event that an e-mail submission is impossible, submissions should be made by facsimile. Persons making submissions by e-mail should use the following subject line: “Employment Impact Review for a Free Trade Agreement between the United States and Korea.” Documents should be submitted as WordPerfect, MSWord, or text (.TXT) files. Spreadsheets submitted as supporting documentation are acceptable as Quattro Pro or Excel files. If any document submitted electronically contains business confidential information, the file name of the business confidential version should begin with the characters “BC-,” and the file name of the public version should begin with the character “P-.” The “P-” or “BC-” should be followed by the name of the submitter. Persons who make submissions by e-mail should not provide separate cover letters; information that might appear in a cover letter should be included in the submission itself. To the extent possible, any attachments to the submission should be included in the same file as the submission itself, and not as separate files. Written comments will be placed in a file open to public inspection pursuant to 15 CFR 2003.5, except confidential business information exempt from public inspection in accordance with 15 CFR 2003.6. Confidential business information submitted in accordance with 15 CFR 2003.6 must be clearly marked “BUSINESS CONFIDENTIAL” at the top of each page, including any cover letter or cover page, and must be accompanied by a non-confidential summary of the confidential information. All public documents and non-confidential summaries shall be available for public inspection in the USTR Reading Room in Room 3 of the Annex of the Office of the USTR, 1724 F Street, NW., Washington, DC 20508. An appointment to review the file may be made by calling

(202)395-6186. The USTR Reading Room is generally open to the public from 10 a.m-12 noon and 1-4 p.m. Monday through Friday. Appointments must be scheduled at least 48 hours in advance. Carmen Suro-Bredie, Chairman, Trade Policy Staff Committee. [FR Doc. E6-2993 Filed 3-2-06; 8:45 am] BILLING CODE 3190-W6-P OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE Trade Policy Staff Committee; Initiation of Environmental Review of Proposed Free Trade Agreement Between the United States and Korea; Public Comments on Scope of Environmental Review AGENCY: Office of the United States Trade Representative. ACTION: Notice and request for comments. SUMMARY: This publication gives notice that, pursuant to the Trade Act of 2002, and consistent with Executive Order 13141 (64 FR 63169) (Nov. 18, 1999) and its implementing guidelines (65 FR 79442), the Office of the United States Trade Representative (USTR), through the Trade Policy Staff Committee (TPSC), is initiating an environmental review of the proposed free trade agreement

(FTA)between the United States and Korea. The TPSC is requesting written comments from the public on what should be included in the scope of the environmental review, including the potential environmental effects that might flow from the free trade agreement and the potential implications for U.S. environmental laws and regulations, and identification of complementarities between trade and environmental objectives such as the promotion of sustainable development. The TPSC also welcomes public views on appropriate methodologies and sources of data for conducting the review. Persons submitting written comments should provide as much detail as possible on the degree to which the subject matter they propose for inclusion in the review may raise significant environmental issues in the context of the negotiation. DATES: Public comments should be received no later than March 31, 2006. ADDRESSES: *Submissions by electronic mail* : *FR0610@ustr.eop.gov* . *Submissions by facsimile* : Gloria Blue, Executive Secretary, Trade Policy Staff Committee, at

(202)395-3475. Questions concerning the environmental review should be addressed to Russell Smith or David J. Brooks, Environment and Natural Resources Section, USTR, telephone

(202)395-7320. SUPPLEMENTARY INFORMATION: 1. Background Information On February 2, 2006, in accordance with section 2104(a)(1) of the Trade Act of 2002, the United States Trade Representative, Ambassador Robert Portman, notified Congress of the President's intent to enter into trade negotiations with the Republic of Korea. Ambassador Portman outlined specific U.S. objectives for these negotiations in the notification letters to Congress. Copies of the letters are available at: *http://www.ustr.gov/Trade_Agreements/Bilateral/Republic_of_Korea_FTA/Section_Index.html* . The TPSC also has invited the public to provide written comments and/or oral testimony at a public hearing that will take place on March 14, 2006, to assist USTR in amplifying and clarifying negotiating objectives for the proposed FTA and to provide advice on how specific goods and services and other matters should be treated under the proposed agreement (see 71 FR 6820). Korea is the world's tenth largest economy and our seventh largest goods trading partner. Two-way goods trade between the United States and Korea has grown significantly in the past decade, and totaled more than $72 billion in 2005. The increased access to Korea's market that an FTA would provide would further boost trade in both goods and services, enhancing employment opportunities in both countries. An FTA also would encourage additional foreign investment between the United States and Korea. A free trade agreement with Korea would serve to strengthen our strategic alliance with Korea and would underscore U.S. commitment to promote strong economic relations with East Asia. 2. Environmental Review USTR, through the TPSC, will perform an environmental review of the agreement pursuant to the Trade Act of 2002 and consistent with Executive Order 13141 (64 FR 63169) and its implementing guidelines (65 FR 79442). Environmental reviews are used to identify potentially significant, reasonably foreseeable environmental impacts (both positive and negative), and information from the review can help facilitate consideration of appropriate responses where impacts are identified. Reviews address potential environmental impacts of the proposed agreement and potential implications for environmental laws and regulations. The focus of the review is on impacts in the United States, although global and transboundary impacts may be considered, where appropriate and prudent. 3. Requirements for Submissions In order to facilitate prompt processing of submissions, USTR strongly urges and prefers electronic (e-mail) submissions in response to this notice. Persons making submissions by e-mail should use the following subject line: “FTA between the United States and Korea Environmental Review” followed by “Written Comments.” Documents should be submitted as a WordPerfect, MSWord, or text (.TXT) file. Supporting documentation submitted as spreadsheets are acceptable as Quattro Pro or Excel. For any document containing business confidential information submitted electronically, the file name of the business confidential version should begin with the characters “BC-”, and the file name of the public version should begin with the characters “P-”. The “P-” or “BC-” should be followed by the name of the submitter. Persons who make submissions by e-mail should not provide separate cover letters; information that might appear in a cover letter should be included in the submission itself. To the extent possible, any attachments to the submission should be included in the same file as the submission itself, and not as separate files. Written comments submitted in response to this request will be placed in a file open to public inspection pursuant to 15 CFR 2003.5, except business confidential information exempt from public inspection in accordance with 15 CFR 2003.6. Business confidential information submitted in accordance with 15 CFR 2003.6 must be clearly marked “BUSINESS CONFIDENTIAL” at the top of each page, including any cover letter or cover page, and must be accompanied by a nonconfidential summary of the confidential information. All public documents and nonconfidential summaries shall be available for public inspection in the USTR Reading Room. The USTR Reading Room is open to the public, by appointment only, from 10 a.m. to 12 noon and 1 p.m. to 4 p.m., Monday through Friday. An appointment to review the file must be scheduled at least 48 hours in advance and may be made by calling

(202)395-6186. USTR also welcomes and will take into account the public comments on environmental issues submitted in response to a previous notice—the **Federal Register** notice dated February 9, 2006 (71 FR 6820)—requesting comments from the public to assist USTR in formulating positions and proposals with respect to all aspects of the negotiation of an FTA between the United States and Korea, including environmental issues. These comments will also be made available for public inspection. General information concerning the Office of the United States Trade Representative may be obtained by accessing its Internet Web site ( *http://www.ustr.gov* ). Carmen Suro-Bredie, Chair, Trade Policy Staff Committee. [FR Doc. E6-2995 Filed 3-2-06; 8:45 am] BILLING CODE 3190-W6-P RAILROAD RETIREMENT BOARD Proposed Collection; Comment Request SUMMARY: In accordance with the requirement of Section 3506 (c)(2)(A) of the Paperwork Reduction Act of 1995 which provides opportunity for public comment on new or revised data collections, the Railroad Retirement Board

(RRB)will publish periodic summaries of proposed data collections. *Comments are invited on:*

(a)Whether the proposed information collection is necessary for the proper performance of the functions of the agency, including whether the information has practical utility;

(b)the accuracy of the RRB's estimate of the burden of the collection of the information;

(c)ways to enhance the quality, utility, and clarity of the information to be collected; and

(d)ways to minimize the burden related to the collection of information on respondents, including the use of automated collection techniques or other forms of information technology. Title and Purpose of Information Collection Employee Representative's Status and Compensation Reports; OMB 3220-0014. Under Section 1(b)(1)of the Railroad Retirement Act (RRA), the term “employee” includes an individual who is an employee representative. As defined in Section 1(c) of the RRA, an employee representative is an officer or official representative of a railway labor organization other than a labor organization included in the term “employer,” as defined in the RRA, who before or after August 29, 1935, was in the service of an employer under the RRA and who is duly authorized and designated to represent employees in accordance with the Railway Labor Act, or, any individual who is regularly assigned to or regularly employed by such officer or official representative in connection with the duties of his or her office. The requirements relating to the application for employee representative status and the periodic reporting of the compensation resulting from such status is contained in 20 CFR 209.10. The RRB utilizes Forms DC-2a, *Employee Representative's Status Report* , and DC-2, *Employee Representative's Report of Compensation* to obtain the information needed to determine employee representative status and to maintain a record of creditable service and compensation resulting from such status. Completion is required to obtain or retain a benefit. One response is requested of each respondent. Minor editorial changes are proposed to Form DC-2a and Form DC-2. The completion time for Form DC-2 is estimated at 30 minutes per response. The RRB estimates that approximately 65 Form DC-2's are received annually. The RRB estimates that less than 10 Form DC-2a's are received annually. Title and Purpose of Information Collection Statement of Claimant or Other Person; OMB 3220-0183. To support an application for an annuity under Section 2 of the Railroad Retirement Act

(RRA)or for unemployment benefits under Section 2 of the Railroad Unemployment Insurance Act (RUIA), pertinent information and proofs must be furnished for the RRB to determine benefit entitlement. Circumstances may require an applicant or other person(s) having knowledge of facts relevant to the applicant's eligibility for an annuity or benefits to provide written statements supplementing or changing statements previously provided by the applicant. Under the railroad retirement program these statements may relate to changes in annuity beginning date(s), dates for marriage(s), birth(s), prior railroad or non-railroad employment, an applicants request for reconsideration of an unfavorable RRB eligibility determination for an annuity or various other matters. The statements may also be used by the RRB to secure a variety of information needed to determine eligibility to unemployment and sickness benefits. Procedures related to providing information needed for RRA annuity or RUIA benefit eligibility determinations are prescribed in 20 CFR parts 217 and 320 respectively. The RRB utilizes Form G-93, *Statement of Claimant or Other Person* to obtain the supplemental or corrective information from applicants or other persons needed to determine applicant eligibility for an RRA annuity or RUIA benefits. The RRB proposes no changes to Form G-93. The completion time for Form G-93 is estimated at 15 minutes per response. The RRB estimates that approximately 900 Form G-93's are received annually. Completion is voluntary. One response is requested of each respondent. Additional Information or Comments: To request more information or to obtain a copy of the information collection justification, forms, and/or supporting material, please call the RRB Clearance Officer at

(312)751-3363 or send an e-mail request to *Charles.Mierzwa@RRB.GOV* . Comments regarding the information collection should be addressed to Ronald J. Hodapp, Railroad Retirement Board, 844 North Rush Street, Chicago, Illinois 60611-2092 or send an e-mail to *Ronald.Hodapp@RRB.GOV* . Written comments should be received within 60 days of this notice. Charles Mierzwa, Clearance Officer. [FR Doc. E6-3032 Filed 3-2-06; 8:45 am] BILLING CODE 7905-01-P SECURITIES AND EXCHANGE COMMISSION [Release Number 34-53360; File No. 4-511] Roundtable on Internal Control Reporting Requirements AGENCY: Securities and Exchange Commission. ACTION: Notice of roundtable discussions; request for comment. SUMMARY: The Securities and Exchange Commission and the Public Company Accounting Oversight Board announced on February 16, 2006 that they will sponsor a roundtable May 10, 2006, at the Commission's headquarters in Washington, DC, to discuss second-year experiences with the reporting and auditing requirements of the Sarbanes-Oxley Act of 2002 related to companies' internal control over financial reporting. The roundtable discussion will include issuers, auditors, investors and other interested parties. “Last spring's informative roundtable resulted in valuable guidance,” said SEC Chairman Christopher Cox. “We look forward to an update on compliance efforts after year two. I'm pleased that the PCAOB is coordinating this year's roundtable with the SEC. We will carefully consider the facts presented to help develop policies to effectively and efficiently improve the reliability of financial statements for the benefit of investors.” “I am very much open to suggestions to make the internal control assessment process more efficient, including modifications of the PCAOB's auditing standard and other actions the Board could undertake,” said PCAOB Acting Chairman Bill Gradison. “This is the PCAOB's highest priority policy issue.” The Commission and the PCAOB further announced today that, in addition to the roundtable, they are seeking written feedback from registrants, auditors, investors and others on their experiences with complying with the Section 404 requirements. The Commission is not soliciting feedback on a particular set of inquiries. The information that is submitted to either organization will become part of the public record of the Section 404 roundtable. DATES: Members of the public are encouraged to provide the submissions before May 1, 2006. ADDRESSES: To help us process and review your comments more efficiently, comments should be sent by one method only. Comments should be submitted electronically at the following e-mail address: *rule-comments@sec.gov* . Comments may also be submitted using the Commission's *Internet submission form* at *http://www.sec.gov/news/press.shtml* . Comments may also be submitted in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090. All comment letters should refer to File Number 4-511; this File number should be included on the subject line if e-mail is used. Comment letters will also be posted on the Commission's Internet Web site ( *http://www.sec.gov/news/press/4-511.shtml* ). Comment letters will be available for public inspection and copying in the Commission's Public Reference Room. FOR FURTHER INFORMATION CONTACT: Consuelo Hitchcock (202-551-3500) or Nancy Salisbury (202-551-5300) at Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549. Dated: February 24, 2006. Nancy M. Morris, Secretary. [FR Doc. E6-3031 Filed 3-2-06; 8:45 am] BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-53363; File No. SR-Amex-2006-18] Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Adoption of a Licensing Fee for Options on the PowerShares Zacks SmallCap Portfolio February 24, 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 15, 2006, the American Stock Exchange LLC (“Amex” or “Exchange”) submitted to 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 Amex. Amex 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 3 and Rule 19b-4(f)(2) 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)(ii). 4 7 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 modify its Options Fee Schedule by adopting a per contract license fee for the orders of specialists, registered options traders (“ROTs”), firms, non-member market makers, and broker-dealers in connection with options transactions in the PowerShares Zacks SmallCap Portfolio (symbol: PZJ). The text of the proposed rule change is available on the Amex's Web site at *http://www.amex.com* , at the principal office of the Amex, 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, Amex 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. Amex 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 Amex proposes to adopt a per contract licensing fee for options on PZJ. These fee changes will be assessed on members commencing February 16, 2006. The Exchange has entered into numerous agreements with various index providers for the purpose of trading options on certain exchange traded funds (“ETFs”), such as PZJ. This requirement to pay an index license fee to a third party is a condition to the listing and trading of these ETF options. In many cases, the Exchange is required to pay a significant licensing fee to the index provider that may not be reimbursed. In an effort to recoup the costs associated with certain index licenses, the Exchange has established a per contract licensing fee for the orders of specialists, ROTs, firms, non-member market makers and broker-dealers, which is collected on every option transaction in designated products in which such market participant is a party. 5 5 *See, e.g.* , Securities Exchange Act Release No. 52493 (September 22, 2005), 70 FR 56941 (September 29, 2005). The purpose of this proposal is to charge an options licensing fee in connection with options on PZJ (the “PowerShares SmallCap ETF”). Specifically, Amex seeks to charge an options licensing fee of $0.05 per contract side for the PowerShares Small Cap ETF option for specialist, ROT, firm, non-member market maker and broker-dealer orders executed on the Exchange. In all cases, the fees will be charged only to the Exchange members through whom the orders are placed. The proposed options licensing fee will allow the Exchange to recoup its costs in connection with the index license fee for the trading of the PowerShares SmallCap ETF option. The fees will be collected on every order of a specialist, ROT, firm, non-member market maker, and broker-dealer executed on the Exchange. The Exchange believes that the proposal to require payment of a per contract licensing fee in connection with the PowerShares SmallCap ETF option by those market participants that are the beneficiaries of Exchange index license agreements is justified and consistent with the rules of the Exchange. The Exchange notes that the Amex, in recent years, has revised a number of fees to better align Exchange fees with the actual cost of delivering services and reduce Exchange subsidies of such services. 6 Amex believes that the implementation of this proposal is consistent with the reduction and/or elimination of these subsidies. Amex believes that these fees will help to allocate to those market participants engaging in transactions in PowerShares SmallCap ETF options, a fair share of the related costs of offering such options. 6 *See, e.g.* , Securities Exchange Act Release Nos. 45360 (January 29, 2002), 67 FR 5626 (February 6, 2002); and 44286 (May 9, 2001), 66 FR 27187 (May 16, 2001). The Exchange asserts that the proposal is equitable as required by Section 6(b)(4) of the Act. 7 In connection with the adoption of an options licensing fee for PowerShares SmallCap ETF options, the Exchange believes that charging an options licensing fee, where applicable, to all market participant orders except for customer orders is reasonable, given the competitive pressures in the industry. 8 Accordingly, the Exchange seeks, through this proposal, to better align its transaction charges with the cost of providing products. 7 Section 6(b)(4) states that the rules of a national securities exchange provide for the equitable allocation of reasonable dues, fees, and other charges among its members and issuers and other persons using its facilities. 8 Telephone call between Jeffrey Burns, Vice President and Associate General Counsel, Amex, and Angela Muehr, Attorney, Division of Market Regulation (“Division”), Commission, on February 22, 2006. 2. Statutory Basis Amex believes that the proposed fee change is consistent with Section 6(b)(4) of the Act 9 regarding the equitable allocation of reasonable dues, fees and other charges among exchange members and other persons using exchange facilities. 9 15 U.S.C. 78f(b)(4). B. Self-Regulatory Organization's Statement on Burden on Competition Amex believes that the proposed rule change does not 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 rule change was filed pursuant to Section 19(b)(3)(A)(ii) of the Act 10 and Rule 19b-4(f)(2) thereunder, 11 because it establishes or changes a due, fee, or other charge imposed by the self-regulatory organization. 10 15 U.S.C. 78s(b)(3)(A)(ii). 11 17 CFR 240.19b-4(f)(2). At any time within 60 days of the filing of such 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-Amex-2006-18 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-2006-18. 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-2006-18 and should be submitted on or before March 24, 2006. For the Commission, by the Division of Market Regulation, pursuant to delegated authority. 12 12 17 CFR 200.30-3(a)(12). Nancy M. Morris, Secretary. [FR Doc. E6-3015 Filed 3-2-06; 8:45 am] BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-53372; File No. SR-CBOE-2006-10] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Exchange Fees for Fiscal Year 2006 February 24, 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 January 31, 2006, the Chicago Board Options Exchange, Incorporated (“CBOE” or “Exchange”) filed with the Securities and Exchange Commission (“Commission”) the proposed rule change as described in Items I, II and III below, which Items have been prepared by the CBOE. The CBOE has designated this proposal as one establishing or changing a due, fee, or other charge imposed by the CBOE under section 19(b)(3)(A)(ii) of the Act 3 and Rule 19b-4(f)(2) thereunder, 4 which renders the proposal effective upon filing with the Commission. 5 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). 5 The Exchange intends for the proposed changes to the Fees Schedule to take effect on February 1, 2006. I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend its Fees Schedule to make various changes for fiscal year 2006. The text of the proposed rule change is included below. Proposed new language is *italicized* ; proposed deletions are in [brackets]. Chicago Board Options Exchange, Inc. Fees Schedule [January 13] *February 1* , 2006 1. Options Transaction Fees (1)(3)(4)(7)(16): Per contract Equity Options (13): I. Customer .00 II. Market-Maker

(MM)(standard rate)(10) .22 III. Member Firm Proprietary:

(11)• Facilitation Of Customer Order .20 • Non-Facilitation Order .24 IV. Broker-Dealer .25 V. Non-Member Market Maker .26 VI. Designated Primary Market-Maker

(DPM)(10)(14) .12 • *As of March 1, 2006* *.14* VII. Electronic DPM (e-DPM)

(14).25 VIII. Linkage Orders

(8).24 IX. Remote Market-Maker

(14).26 QQQQ and SPDR Options: Unchanged. Index Options (includes Dow Jones DIAMONDS, OEF and other ETF and HOLDRs options)[(17)(18)]: Remainder of section unchanged. 2. Marketing Fee (6)(16) Unchanged. 3. Floor Brokerage Fee (1)(5)(16)[(17)(18)]: • [Equity & QQQQ Customer Order $.00] • [All Other Equity, QQQQ And Index] *DXL, OEX and SPX* Options [(8)] .04 • *DXL, OEX and SPX* Crossed Orders .02 4. RAES Access Fee (Retail Automatic Execution System) (1)(4)(16): Unchanged. Footnotes 1.-7. Unchanged. 8. Linkage order fees in effect on a pilot basis until July 31, 2006, except for Satisfaction Orders, which are not assessed Exchange fees per Linkage rules. The [floor brokerage fee for “all other equity, QQQQ and index options” and the] RAES access fee for non-customer transactions also apply to linkage orders. 9.-16. Unchanged. [17. Transaction, floor brokerage and OBO fees are waived through December 15, 2005 for transactions involving closing a position in reduced-value SPX LEAPS and simultaneously opening a corresponding position in full-value SPX LEAPS. 18. All fees for trading in XSP options are waived through January 31, 2006.] 5.-9. Unchanged. 10. Member Dues[*] $450 per month. [ * The Exchange will waive May 2005 member dues for CBOE Market-Makers who automatically execute 2000 contracts or more (through the use of “M” orders) during May 2005 in hybrid options classes, i.e., all equity options classes and the MNX, QQQQ and SPDR options classes.] 11.-17. Unchanged. 18. *Customer Large Trade Discount:* A customer large trade discount program in the form of a cap on customer transaction fees is in effect for the index options set forth below. [MNX is not included in the program since MNX customer fees were significantly reduced in June 2002.] Floor brokerage fees are not subject to the cap on fees. Regular customer transaction fees will only be charged up to the following quantity of contracts per order, for options based on the following underlying indexes: ▪ Dow Jones indexes (including Diamonds) *and SPX* —charge only the first 5,000 contracts. ▪ [SPX—charge only the first 5,000 contracts]. ▪ OEX (including XEO & OEF), NDX & other indexes—charge only the first 3,000 contracts. 19. *Prospective Fee Reduction Program:* Fee reductions will be in effect [August 1, 2004] *February 1, 2006* through [January] *December* 31, 2006 under the following scenarios: • If CBOE volume exceeds [predetermined average] *2,300,000* contracts per day

(CPD)[thresholds] at the end of any month on a fiscal year-to-date

(YTD)basis, Market-Maker and DPM transaction and floor brokerage fees will be reduced in the subsequent month [according to the schedule presented below:] *by 10% per contract from standard rates.* • *If CBOE volume exceeds 2,550,000 contracts per day

(CPD)at the end of any month on a fiscal year-to-date

(YTD)basis, Market-Maker and DPM transaction and floor brokerage fees will be reduced in the subsequent month by 20% per contract from standard rates.* [FY05 ytd avg. CPD Fees discount (percent) Equities market-maker reductions QQQQ/SPDR/Index market-maker/DPM reductions Equities DPM trans. fees reductions Floor brokerage reductions 1,300,000 10 $.022 $.024 $.012 $.004 1,400,000 15 .033 .036 .018 .006 1,500,000 20 .044 .048 .024 .008 1,600,000 25 .055 .060 .030 .010 1,700,000 30 .066 .072 .036 .012 1,800,000 35 .077 .084 .042 .014 1,900,000 40 .088 .096 .048 .016 2,000,000 45 .099 .108 .054 .018] 20. *Cap on Member Firm Proprietary and Firm Facilitation Fees:* Effective [February 2, 2004] *February 1, 2006* , the Exchange will cap Member Firm** Proprietary and Firm Facilitation fees at [$75,000] *$100,000* per month per firm. Specifics of the plan are as follows: • Fees eligible for the cap program include Member Firm Proprietary and Firm Facilitation transaction [and trade match] fees in all products. • Member Firm Proprietary and Firm Facilitation orders must include designated firm origin codes (e.g. “F”) on trade input records to be eligible for the cap calculation. • Cap calculations will be performed after each month-end and credits will be processed in the next billing period. License fees for Member Firm Proprietary and Firm Facilitation fee cap: Due to CBOE's obligation to pay license fees on many products, the Exchange will assess a ten cent per contract license fee on all licensed products, excluding OEX, after a firm has reached a cap on Member Firm Proprietary and Firm Facilitation fees for any month. —*— ** This program applies to member organizations for orders for the proprietary account of any member or non-member broker dealer that derives more than 35% of its annual, gross revenues from commissions and principal transactions with customers. Member organizations will be required to verify this amount to the Exchange by certifying that they have reached this threshold and by submitting a copy of their annual report, which was prepared in accordance with Generally Accepted Accounting Principles (“GAAP”). In the event that a member organization has not been in business for one year, the most recent quarterly reports, prepared in accordance with GAAP, will be accepted. 21. *DPM Linkage Fees Credits: PA Orders:* [Effective October 1, 2005 through January 31, 2006,] CBOE will rebate DPM transaction fees generated from transactions against customer orders that underlie outbound principal acting as agent

(PA)orders. In addition, when DPMs incur fees to execute PA orders at other exchanges, those DPMs will be credited up to an additional $.20 per contract, up to the amount of total fees CBOE receives from inbound linkage transaction fees. The foregoing credit is apportioned to DPMs pro-rata based on the number of contracts executed by each DPM at other exchanges via PA orders. *This program shall expire upon the earlier of:

(i)Thirty days after Commission approval of use of an Exchange account to send and respond to PA orders; or

(ii)July 31, 2006 (the expiration date of the Linkage fees pilot program).* *P Orders: Effective February 1, 2006, CBOE will rebate DPM transaction fees generated from transactions against broker-dealer orders (“B” or “F” origin) that underlie outbound principal

(P)orders (“CBOE Transactions”). In addition, when DPMs incur fees to execute such P orders at other exchanges (“Away Transactions”), those DPMs will be credited up to an additional $.20 per contract. CBOE will also credit DPMs up to an additional $.09 per contract on both CBOE Transactions and Away Transactions to help offset Options Clearing Corporation

(OCC)and clearing firm fees incurred by DPMs on those transactions. The foregoing credits are up to the amount of total fees CBOE receives from inbound linkage transaction fees. The $.20 per contract credit is apportioned to DPMs pro-rata based on the number of contracts executed by each DPM in connection with Away Transactions. The $.09 per contract credit is apportioned to DPMs pro-rata based on the number of contracts executed by each DPM in connection with both CBOE Transactions and Away Transactions.* 22. *Reserved* 23. *Fixed Annual Fee Alternative for DPMs and e-DPMs:* Effective [October 1, 2004] *February 1, 2006* , DPMs and e-DPMs may elect to pay a fixed annual fee of [$1.75] *$2.25* million instead of being assessed transaction fees on a per contract basis for their DPM *,* [and] e-DPM *and RMM* transactions only in all equity option classes. The fixed fee does not cover any floor brokerage fees. DPMs electing to pay the fixed fee will neither be charged CBOE transaction fees for CBOE transactions related to outgoing P/A orders or P orders (as defined in section 21 of this Fees Schedule), nor will they receive the rebate for such fees as set forth in Section 21 of this Fees Schedule. However, [pursuant to the second phase of linkage fee relief set forth in section 21 of this Fee Schedule,] all CBOE DPMs, including those electing the fixed annual fee, [who pay transaction fees at other exchanges to execute P/A orders there, will receive a credit of up to $.20 per contract (with the total of such credits not to exceed the total amount of inbound linkage transaction fees received by CBOE) to help offset the transaction fees of other exchanges that CBOE DPMs incur in filling P/A orders at those exchanges] are eligible to receive the $.20 per contract and $.09 per contract credits set forth in section 21 of this Fees Schedule. [Effective July 1, 2005, DPMs and e-DPMs who elect the fixed annual fee alternative described above may elect to pay an RMM fixed annual fee of $250,000 instead of being assessed transaction fees on a per contract basis for their RMM transactions only in all equity options.] If a DPM or e-DPM who has elected the fixed annual fee alternative merges or combines operations with a DPM or e-DPM who has not elected the fixed annual fee alternative, then the fixed annual fee will be increased and assessed to the surviving DPM/e-DPM entity. The amount of the increase will be based on the number of contracts traded and transaction fees paid during the previous twelve months by the DPM or e-DPM organization who had not previously elected the fixed annual fee alternative. The amount of the increase will be prorated based on the amount of time remaining in the then current year of the fixed fee annual program. If two DPMs or e-DPMs who elected the fixed annual fee alternative merge or combine operations, the fixed fee paid to CBOE by these two organizations will be unaffected. No adjustments or refunds will be made to either entity. Remainder of Fees Schedule—Unchanged. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The purpose of this proposed rule change is to amend the CBOE Fees Schedule to make various fee changes. The proposed changes are the product of the Exchange's annual budget review. The Exchange proposes to amend the fees as noted below. a. Equity Options DPM Transaction Fee The Exchange proposes to increase the equity options Designated Primary Market-Maker (“DPM”) transaction fee. The Exchange believes that increasing this fee is appropriate given that DPM costs are expected to decrease as the result of implementation of the PAR Official program. 6 The current equity options DPM transaction fee is $.12 per contract. The Exchange proposes to increase the fee to $.14 per contract as of March 1, 2006 to coincide with the PAR Official program roll-out, which is expected to be completed in February 2006. 6 On November 18, 2005, Commission approved a CBOE rule change that proposed to remove a DPM's obligation and ability to execute orders as an agent, including as a floor broker, in its allocated securities on the Exchange in any trading station and that allows the Exchange to appoint an Exchange employee or independent contractor (“PAR Official”) to assume much of the functions and obligations that DPMs previously held. *See* Securities Exchange Act Release No. 52798 (November 18, 2005), 70 FR 71344 (November 28, 2005). b. Floor Brokerage Fees The Exchange proposes to eliminate floor brokerage fees in all products except options on the Jumbo Dow Jones Industrial Average (“DXL”), options on the S&P 100 index (“OEX”) and options on the S&P 500 index (“SPX”). Effective February 1, 2006, only floor brokers executing orders in DXL, OEX and SPX options will be charged the $.04 floor brokerage fee and the $.02 fee for crossed orders. 7 The Exchange believes eliminating floor brokerage fees in the foregoing manner will make the Exchange's fees more competitive with the floor brokerage fees charged by other exchanges. 7 *See* CBOE Fees Schedule, section 3. The Exchange also proposes a non-substantive change to Footnote 8 of the Fees Schedule regarding Linkage orders to reflect the changes to section 3. In addition, the Exchange notes that DXL, OEX and SPX options are currently singly-listed; therefore, orders for these options are not sent through the Intermarket Options Linkage (“Linkage”). Telephone conversation between Jaime Galvan, Assistant Secretary, CBOE and Nancy J. Sanow, Assistant Director, Geoffrey Pemble, Special Counsel, and Sara Gillis, Attorney, Division of Market Regulation, Commission on February 13, 2006. c. Customer Large Trade Discount Program The Exchange proposes to include options on the Mini-Nasdaq-100 index (“MNX”) in the Customer Large Trade Discount program. The Customer Large Trade Discount program provides a discount in the form of a cap on the quantity of customer contracts that are assessed transaction fees for most CBOE index options. 8 When the program was first established in July 2003, 9 MNX options were not included since MNX customer transaction fees had been significantly reduced in June 2002. 10 The Exchange now proposes to include MNX options in the program, effective February 1, 2006. MNX regular customer transaction fees will only be charged up to the first 3,000 contracts per order. 8 *See* CBOE Fees Schedule, section 18. 9 *See* Securities Exchange Act Release No. 48223 (July 24, 2003), 68 FR 44978 (July 31, 2003). 10 *See* Securities Exchange Act Release No. 46045 (June 6, 2002), 67 FR 41284 (June 17, 2002). d. Prospective Fee Reduction Program The Exchange proposes to modify and continue its Prospective Fee Reduction Program for fiscal year 2006. The Program is intended to limit Market-Maker and DPM fees in periods of high volume. 11 The thresholds for fee reductions have been reviewed and adjusted, as they are each year, to account for the anticipated working capital needs of the Exchange for the coming year. Fee reductions will be in effect February 1, 2006 under the scenarios noted below. 11 *See* CBOE Fees Schedule, Section 19. If CBOE volume exceeds 2,300,000 contracts per day (“CPD”) at the end of any month on a fiscal year-to-date (“YTD”) basis, Market-Maker and DPM transaction and floor brokerage fees will be reduced in the subsequent month by 10% per contract from standard rates. If CBOE volume exceeds 2,550,000 CPD at the end of any month on a fiscal YTD basis, Market-Maker and DPM transaction and floor brokerage fees will be reduced in the subsequent month by 20% per contract from standard rates. e. Member Firm Proprietary and Firm Facilitation Fee Cap The Exchange currently caps member firm proprietary and firm facilitation fees at $75,000 per month per firm. 12 The Exchange proposes to increase the cap to $100,000 per month per firm. No other changes to the program are proposed. 12 *See* CBOE Fees Schedule, Section 20, and Securities Exchange Act Release No. 49341 (March 1, 2004), 69 FR 10492 (March 5, 2004). f. Extension of DPM Linkage Fee Credit for P/A Orders The Exchange, pursuant to section 21 of the CBOE Fees Schedule, credits DPMs for transaction fees they incur related to the execution of outbound principal acting as agent (“P/A”) orders, as defined in the Linkage Plan. This “DPM Linkage Fees Credit” is accomplished via a rebate and a credit, as follows:

(i)The Exchange rebates transaction fees that DPMs incur when they trade against a customer order that underlies a P/A order the DPM sent through the Linkage; and

(ii)the Exchange credits the DPMs up to an additional $.20 per contract to help offset some of the fees the DPMs incur for submitting P/A orders through the Linkage (this program is referred to herein as the “P/A Rebate Program”). The P/A Rebate Program is currently due to expire on January 31, 2006. 13 13 *See* Securities Exchange Act Release No. 53044 (December 30, 2005), 71 FR 957 (January 6, 2006). The Exchange proposes to extend the P/A Rebate Program. A proposed amendment to the Linkage Plan has also been separately submitted to the Commission to permit an Exchange account, instead of the DPM's account, to be used by PAR Officials to send and respond to P/A orders (“Linkage Account Plan Amendment”). 14 When an Exchange account is used to send and respond to P/A orders, there would no longer be a need for the P/A Rebate Program. Therefore, the Exchange proposes to extend the P/A Rebate Program until the earlier of:

(i)Thirty days after Commission approval of the Linkage Account Plan Amendment ( *i.e.* , Commission approval of use of an Exchange account to send and respond to P/A orders); or

(ii)July 31, 2006, which is the expiration date of the Linkage fees pilot program. The thirty day time period after Commission approval of the Linkage Account Plan Amendment is intended to allow for the P/A Rebate Program to continue while the Exchange rolls-out the required systems changes needed to utilize the Exchange account. 14 Telephone conversation between Jaime Galvan, Assistant Secretary, CBOE and Nancy J. Sanow, Assistant Director, Geoffrey Pemble, Special Counsel, and Sara Gillis, Attorney, Division of Market Regulation, Commission on February 13, 2006. g. DPM Linkage Fee Credit for Certain P Orders The Exchange proposes to adopt a program similar to the P/A Rebate Program (but with one difference) to credit DPMs for transaction fees they incur related to the execution of outbound Principal orders on behalf of orders that are for the account of a broker-dealer (for purposes of the proposed program, such Principal orders are referred to as “P orders”). Specifically, the Exchange proposes to adopt a rebate program (“P Rebate Program”) under which:

(i)The Exchange will rebate transaction fees that DPMs incur when they trade against a broker-dealer order (orders that are marked with either a “B” or “F” origin code) that underlies a P order the DPM sent through the Linkage; and

(ii)the Exchange will credit DPMs up to an additional $.20 per contract to help offset some of the fees DPMs incur for submitting such P orders through the Linkage. 15 15 The Exchange has represented that, although not specifically referenced in the rule text, this rebate program will be subject to the July 31, 2006 expiration of the Linkage fee pilot program noted in Footnote 8 of the Fees Schedule. Telephone conversation between Jaime Galvan, Assistant Secretary, CBOE and Nancy J. Sanow, Assistant Director, Geoffrey Pemble, Special Counsel, and Sara Gillis, Attorney, Division of Market Regulation, Commission on February 13, 2006. In addition, the Exchange proposes to credit DPMs up to an additional $.09 per contract on both P order-related executions (the CBOE transaction against the broker-dealer order underlying the outbound P order and the P order transaction at another exchange), to help offset the OCC and clearing firm fees DPMs incur on those transactions. 16 16 The $.09 per contract credit is based on a estimated OCC fee of $.02 per contract and estimated average clearing firm fee of $.07 per contract. As under the P/A Rebate Program, the aggregate amount of the $.20 per contract and $.09 per contract credits for all DPMs under the P Rebate Program will be limited to no more than the total amount of fees that the Exchange earns from fees generated by inbound Linkage transaction fees. The $.20 per contract credit will be apportioned to DPMs pro- rata based on the number of contracts executed by each DPM at other exchanges via such P orders. The $.09 per contract credit will be apportioned to DPMs pro-rata based on the number of contracts executed by each DPM at CBOE against broker-dealer orders that underlie outbound P orders and at other exchanges via such P orders. A DPM will be expected to reimburse the Exchange to the extent that the funds received by the DPM via the P Rebate Program exceed the DPM's actual costs incurred in executing Linkage-related transactions. 17 17 Section 23 of the Fees Schedule, which includes a cross reference to section 21, is also proposed to be amended to reflect the changes to section 21. The purpose of the P Rebate Program is to further assist DPMs in offsetting the additional costs they incur in routing orders to other exchanges in order to obtain the National Best Bid or Offer (“NBBO”). Unlike the P/A Rebate Program, the P Rebate Program is not proposed to expire, except subject to the Linkage fees pilot specified in Footnote 8 of the CBOE Fees Schedule. The Exchange intends to implement the P Rebate Program on February 1, 2006. h. Fixed Annual Fee Pursuant to section 23 of the CBOE Fees Schedule, the Exchange offers a fixed annual fee program for DPMs and Electronic Designated Primary Market-Makers (“e-DPMs”). The program offers DPMs and e-DPMs the alternative of choosing a fixed annual fee of $2 million instead of being assessed transaction fees on a per contract basis for its DPM, e-DPM and Remote Market-Maker (“RMM”) transactions in equity options classes. 18 18 The DPM and e-DPM fixed annual fee for 2005 was $1.75 million for DPM and e-DPM equity options transactions and $250,000 for RMM equity options transactions. *See* Securities Exchange Act Release No. 50058 (July 22, 2004), 69 FR 45861 (July 30, 2004), and Securities Exchange Act Release No. 51746 (May 26, 2005), 70 FR 32855 (June 6, 2005). The Exchange proposes to increase the DPM and e-DPM fixed annual fee for fiscal year 2006 to $2.25 million for DPM, e-DPM and RMM equity options transactions. No other changes to the program are proposed. i. Miscellaneous, Non-substantive Changes The Exchange proposes a few non-substantive changes to its Fees Schedule to remove references to fee waiver programs that have expired. Specifically, the Exchange proposes to delete Footnotes 17 and 18, which relate to expired fee waiver programs applicable to SPX LEAPS and XSP options. The Exchange also proposes to delete a reference to an expired member dues waiver program in section 10 of the Fees Schedule. 2. Statutory Basis The CBOE believes that the proposed rule change is consistent with section 6(b) of the Act, 19 in general, and furthers the objectives of section 6(b)(4) 20 of the Act, in particular, in that it is designed to provide for the equitable allocation of reasonable dues, fees, and other charges among CBOE members and other persons using its facilities. 19 15 U.S.C. 78f(b). 20 15 U.S.C. 78f(b)(4). B. Self-Regulatory Organization's Statement on Burden on Competition CBOE does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of 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 Because the foregoing rule change establishes or changes a due, fee, or other charge imposed by the Exchange, it has become effective pursuant to section 19(b)(3)(A) of the Act 21 and subparagraph (f)(2) of Rule 19b-4 22 thereunder. 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. 23 21 15 U.S.C. 78s(b)(3)(A). 22 17 C.F.R. 240.19b-4(f)(2). 23 *Id.* 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-CBOE-2006-10 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-CBOE-2006-10. 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 CBOE. 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-CBOE-2006-10 and should be submitted on or before March 24, 2006. For the Commission, by the Division of Market Regulation, pursuant to delegated authority. 24 24 17 CFR 200.30-3(a)(12). Nancy M. Morris, Secretary. [FR Doc. E6-3014 Filed 3-2-06; 8:45 am] BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-53371; File No. SR-NASD-2005-144] Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Order Granting Approval of a Proposed Rule Change Relating to Order Entry and Execution Practices February 24, 2006. I. Introduction On December 8, 2005, the National Association of Securities Dealers, Inc. (“NASD”) filed with the Securities and Exchange Commission (“Commission”) pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934, as amended, (“Act”) 1 and Rule 19b-4 thereunder, 2 a proposed rule change relating to order entry and execution practices. The proposed rule change was published in the **Federal Register** on January 23, 2006. 3 The Commission has received one comment on the proposal. 4 This order approves the proposed rule change. 1 15 U.S.C. 78s(b)(l). 2 17 CFR 240. 19b-4. 3 *See* Securities Exchange Act Release No. 53132 (January 17, 2006), 71 FR 3584. 4 *See* email comment from Jefferson Wigley, Managing Member, Sun Trading LLC, dated February 15, 2006 (“Sun Trading Letter”). II. Description of the Proposal The NASD proposed to add Rule 3380 to prohibit members and associated persons from splitting any order into multiple smaller orders for execution or any execution into multiple smaller executions for transaction reporting for the primary purpose of maximizing a monetary or in-kind payment to the member or associated persons as a result of the execution of such orders or the transaction reporting of such executions. III. Discussion and Commission Findings The Commission has reviewed carefully the proposed rule change and finds that it is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities association, 5 particularly Section 15A(b)(6) of the Act, 6 which requires that an association's rules be designed to prevent fraudulent and manipulative acts and practices, promote just and equitable principles of trade, remove impediments to, and perfect the mechanism of, a free and open market and, in general, protect investors and the public interest. 5 In approving this proposed rule change, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. *See* 15 U.S.C. 78c(f). 6 15 U.S.C. 78o-3(b)(6). In its comment letter on behalf of Sun Trading LLC, 7 the commenter argues, in essence, that the rule proposal should be limited to the splitting of customer orders, and that trade shredding should be permitted for member proprietary trades, since this could allow members to make tighter and more efficient markets. Accordingly, the commenter suggests that the Commission limit the application of the rule to exclude trading by market makers and proprietary trading firms where no customer orders are involved. The commenter believes that the Commission has adequately addressed the issue of trade shredding in the newly adopted Regulation NMS and that further steps would be counter productive. 7 *See supra* note 4. While Regulation NMS will revise the current plan formulas, which allocate market data revenues based either solely on the number of trades, or on trade and share volume, to reduce the emphasis on trade volume, the Commission believes it is appropriate for self-regulatory organizations (“SROs”) to take additional steps to address trade shredding and its potentially distortive effects. The Commission notes that, to date, it has approved rule changes to address the practice of trade shredding from four SROs. 8 The remaining SROs have filed proposed rule changes to address the issue of trade shredding. 9 8 *See* Securities Exchange Act Release Nos. 52341 (August 26, 2005), 70 FR 52455 (September 2, 2005) (SR-BSE-2005-20); 52683 (October 26, 2005), 70 FR 66480 (November 2, 2005) (SR-NYSE-2005-62); 53070 (January 6, 2006), 71 FR 2286 (January 13, 2006) (SR-Phlx-2005-63); 53088 (January 10, 2006), 71 FR 2605 (January 17, 2006) (SR-CBOE-2005-92). 9 *See* SR-Amex-2005-112, SR-CHX-2006-03, SR-PCX-2006-10. National Stock Exchange expects to file a trade shredding rule change proposal in the near future. The Commission believes that the proposed rule change should further deter the distortive practice of trade shredding, and, therefore, promote just and equitable principles of trade. IV. Conclusion *It is therefore ordered* , pursuant to Section 19(b)(2) of the Act, 10 that the proposed rule change (File No. SR-NASD-2005-144), be and hereby is, approved. 10 15 U.S.C. 78s(b)(2). For the Commission, by the Division of Market Regulation, pursuant to delegated authority. 11 11 17 CFR 200.30-3(a)(12). Nancy M. Morris, Secretary. [FR Doc. E6-3029 Filed 3-2-06; 8:45 am] BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-53376; File No. SR-PCX-2006-12] Self-Regulatory Organizations; Pacific Stock Exchange, Inc.; Notice of Filing of Proposed Rule Change Relating to Clearly Erroneous Executions February 27, 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 23, 2006, the Pacific Stock Exchange, Inc. (“PCX” or “Exchange”) filed with the Securities and Exchange Commission (“Commission”) the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the PCX. 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. I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The PCX proposes to amend PCX Equities, Inc. (“PCXE”) Rule 7.10(e) pertaining to clearly erroneous executions of securities issued in initial public offerings. The text of the proposed rule change is set forth below. 3 Brackets indicate deletions; italics indicates new text. 3 The Exchange inadvertently indicated that the title of PCXE Rule 7.10 was new text. The Commission corrected this technical error in the text of the proposed rule change. Rules of the PCX Equities, Inc. Rule 7 Rule 7.10 Clearly Erroneous Executions (a)-(d) No Change.

(e)Trade Nullification and Price Adjustments for UTP Securities that are Subject of Initial Public Offerings (“IPOs”). Pursuant to SEC Rule 12f-2, as amended, the Corporation may extend unlisted trading privileges to a security that is the subject of an initial public offering when at least one transaction in the subject security has been effected on the national securities exchange or association upon which the security is listed and the transaction has been reported pursuant to an effective transaction reporting plan. A clearly erroneous error [will] *may* be deemed to have occurred in the opening transaction of the subject security if the execution price of the opening transaction on the Corporation is the lesser of $1.00 or 10% away from the opening price on the listing exchange or association. In such circumstances, the Officer shall declare the opening transaction null and void or adjust the transaction price to the opening price on the listing exchange or association. Clearly erroneous executions of subsequent transactions of the subject security will be reviewed in the same manner as the procedure set forth in (c)(1). Absent extraordinary circumstances, any such action of the Officer pursuant to this subsection

(e)shall be taken in a timely fashion, generally within thirty

(30)minutes of the detection of the erroneous transaction. Each party involved in the transaction shall be notified as soon as practicable by the Corporation, and the party aggrieved by the action may appeal such action to the PCXE CRO in accordance with the provisions of subsection (c)(2)-(4) above. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The purpose of the proposed rule change is to revise the procedures for trade nullifications (“busts”) and price adjustments (“adjusts”) for securities issued in initial public offerings (“IPOs”) from an automatic to a discretionary basis. Given the unique nature of IPOs, public customers have an expectation that the opening of the security will be orderly and that the pricing will be reasonable for the listing company. Opening execution prices transacted on the primary listed exchange (and other market centers) represent the price of the stock in the secondary market, which may not necessarily reflect the IPO pricing disseminated prior to the start of secondary market trading by the underwriters/syndicates. According to the Exchange, there may be varying first prices in a security that is issued in an IPO because market centers may have different prices at the same second. Due to the possibility of varying prices at the same second in a security issued in an IPO, PCXE staff reviews the openings of IPOs on ArcaEx on a best efforts basis. The review of IPO opening prices utilizes criteria that also are used to judge erroneous executions during the pre-core, core and post-core sessions. IPO trades are evaluated for uniformity with the primary listed exchange as well as with other market centers' prices. Currently, initial trades on ArcaEx that are executed at prices more than $1.00 from the primary listed exchange's opening price are automatically busted or adjusted to the primary listed exchange's opening price. Under the proposed rule, PCXE staff would have the discretion to bust or adjust initial trades that are executed more than $1.00 from the primary listed exchange's opening price. The Exchange believes that the change from automatic to discretionary adjustments or busts is necessary because often the primary exchange lists the IPO at multiple first prices. Many times, but not always, the first price is not indicative of the actual price of the IPO and thus the PCXE staff must review all of the first prices to determine if the trade at issue has to be adjusted or busted. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act 4 in general, and furthers the objectives of Section 6(b)(5) of the Act 5 in particular, because it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, and to remove impediments to and perfect the mechanism of a free and open market and a national market system. 4 15 U.S.C. 78f(b). 5 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 Within 35 days of the date of publication of this notice in the **Federal Register** or within such longer period

(i)as the Commission may designate up to 90 days of such date if it finds such longer period to be appropriate and publishes its reasons for so finding, or

(ii)as to which the Exchange consents, the Commission will:

(A)By order approve the proposed rule change or

(B)Institute proceedings to determine whether the proposed rule change should be disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission's Internet comment form at *http://www.sec.gov/rules/sro.shtml* ; or • Send an e-mail to *rule-comments@sec.gov.* Please include File Number SR-PCX-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-PCX-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 Section. Copies of such filing also will be available for inspection and copying at the principal office of the PCX. 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-2006-12 and should be submitted on or before March 24, 2006. For the Commission, by the Division of Market Regulation, pursuant to delegated authority. 6 6 17 CFR 200.30-3(a)(12). Nancy M. Morris, Secretary. [FR Doc. E6-3030 Filed 3-2-06; 8:45 am] BILLING CODE 8010-01-P DEPARTMENT OF TRANSPORTATION Office of the Secretary Aviation Proceedings, Agreements Filed the Week Ending February 10, 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-2006-23881. *Date Filed:* February 7, 2006. *Parties:* Members of the International Air Transport Association. *Subject:* TC3 South Asian Subcontinent—South West Pacific. Singapore, 21 November—30 November 2005. *Intended effective date:* 1 April 2006 (Memo 0930). *Minutes:* TC3 South Asian Subcontinent—South West Pacific. Singapore, 21 November—30 November 2005 (Memo 0943). *Tables:* TC3 South Asian Subcontinent—South West Pacific Singapore, 21 November—30 November 2005. *Intended effective date:* 1 April 2006 (Memo 0381). *Docket Number:* OST-2006-23892. *Date Filed:* February 8, 2006. *Parties:* Members of the International Air Transport Association. *Subject:* TC3 South East Asia—South West Pacific between Malaysia and American Samoa. Singapore, 21 November—30 November 2005. *Intended Effective Date:* 1 April 2006 (Memo 0924). *Minutes:* TC3 South East Asia—South West Pacific between Malaysia and American Samoa. Singapore, 21 November—30 November 2005 (Memo 0943). *Fares:* TC3 South East Asia—South West Pacific 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-2006-23915. *Date Filed:* February 9, 2006. *Parties:* Members of the International Air Transport Association. *Subject:* Mail Vote Number S 084. RP 1720a-13 Digit Numbering System for Traffic Documents Request for an Additional Form Code for Increased Usage of Electronic Tickets

(ETs)in an OPTAT Environment. *Intended effective date:* 20 February 2006. Renee V. Wright, Program Manager, Docket Operations, Federal Register Liaison. [FR Doc. E6-2963 Filed 3-2-06; 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 10, 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-2005-23898. *Date Filed:* February 8, 2006. *Due Date for Answers, Conforming Applications, or Motion to Modify Scope:* March 1, 2006. *Description:* Application of Pacific Airways, Inc. requesting a certificate of public convenience and necessity to transport passengers, property, and mail in interstate air transportation. *Docket Number:* OST-2005-22228 and OST-1997-2558. *Date Filed:* February 9, 2006. *Due Date for Answers, Conforming Applications, or Motion to Modify Scope:* March 2, 2006. *Description:* Amendment of Continental Micronesia, Inc. to its application for renewal of certain segments of its certificate for Route 171 to include authority, pursuant to the Department's August 23, 2005 notice on streamlining regulatory procedures, to provide scheduled air transportation of persons, property and mail between Guam and Cairns, Australia; Guam and Nagoya, Japan; and Honolulu and Nagoya, Japan and authority to integrate this authority with authority currently held by Continental Micronesia, Inc. *Docket Number:* OST-2003-16773 and OST-2003-16774. *Date Filed:* February 10, 2006. *Due Date for Answers, Conforming Applications, or Motion to Modify Scope:* March 3, 2006. *Description:* Application of Ameristar Air Cargo, Inc. d/b/a Ameristar Charters requesting renewal of its certificates of public convenience and necessity to engage in interstate and foreign charter air transportation of persons on a permanent basis. Renee V. Wright, Program Manager, Docket Operations, Federal Register Liaison. [FR Doc. E6-2962 Filed 3-2-06; 8:45 am] BILLING CODE 4910-62-P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration Public Notice for a Change in Use of Aeronautical Property at Pease International Tradeport, Portsmouth, NH AGENCY: Federal Aviation Administration (FAA), DOT. ACTION: Request for public comments. SUMMARY: The FAA is requesting public comment on the Pease Development Authority's request to dispose of approx. 69 acres of Airport property. The property is located on the North end of the Tradeport along Arboretum Drive and is known as the Newington Town Forest. The vacant land is on the National Register of Historic Places and cannot be developed. The land will be deeded to the Town of Newington, New Hampshire for continued use as the Town Forest. The property was acquired from the United States of America via Quitclaim Deed dated October 15, 2003. The disposition of proceeds from the disposal of airport property will be in accordance with FAA's Policy and Procedures Concerning the Use of Airport Revenue, published in the **Federal Register** on February 15, 1999. DATES: Comments must be received on or before April 3, 2006. ADDRESSES: Documents are available for review by appointment by contacting Ms. Lynn Hinchee, General Counsel, Pease Development Authority at 603-766-9286 or by contacting Ms. Donna R. Witte, Federal Aviation Administration, 16 New England Executive Park, Burlington, Massachusetts, Telephone 781-238-7624. FOR FURTHER INFORMATION CONTACT: Donna R. Witte at the Federal Aviation Administration, 12 New England Executive Park, Burlington, Massachusetts 01803, Telephone 781-238-7624. SUPPLEMENTARY INFORMATION: Section 125 of The Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (AIR 21) requires the FAA to provide an opportunity for public notice and comment to the “waiver” or “modification” of a sponsor's Federal obligation to use certain airport property for aeronautical purposes. Issued in Burlington, Massachusetts on February 23, 2006. LaVerne F. Reid, Manager, Airports Division, New England Region. [FR Doc. 06-2008 Filed 3-2-06; 8:45 am]

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