Notices. Proposed new system of records and proposed routine uses
18,667 words·~85 min read·
/register/2006/03/31/06-3109·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-53549; File No. SR-NYSE-2006-11] Self-Regulatory Organizations; New York Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to a Modification to the Existing Moratorium on the Qualification and Registration of Registered Competitive Market Makers March 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 24, 2006, the New York Stock Exchange, Inc.
(“NYSE” 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 the Exchange. The Exchange has designated the proposed rule change as constituting a “non-controversial” rule change under Section 19(b)(3)(A)(iii) of the Act, 3 and Rule 19b-4(f)(6) thereunder, 4 which renders 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 15 U.S.C. 78s(b)(3)(A)(iii). 4 17 CFR 240.19b-4(f)(6).
I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change This Exchange is proposing a modification to the recently implemented moratorium on the qualification and registration of new Registered Competitive Market Makers (“RCMMs”) covered in NYSE Rule 107A. 5 The text of the proposed rule change is available on the NYSE's Web site ( *http://www.nyse.com* ), at the NYSE's Office of the Secretary, and at the Commission's Public Reference Room. 5 *See* Securities Exchange Act Release No. 52648 (October 21, 2005), 70 FR 62155 (October 28, 2005) (SR-NYSE-2005-63) (the “Release”).
II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of, and basis for, the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1.
Purpose The Exchange recently implemented a moratorium on the qualification and registration of new Competitive Traders (“CTs”) and RCMMs while the Exchange conducts a study on their future viability. 6 In this filing, the Exchange seeks to modify the moratorium in order to permit the registration of a replacement of a firm's existing RCMM, should such employee cease being an RCMM. 6 *See supra* note 5. The Exchange noted in the Release that the moratorium on registrations would not impact existing RCMMs and CTs. 7 In furtherance of this goal, the Exchange proposes to allow any firm that loses a registered RCMM during the moratorium because such person ceases being an RCMM, to replace him or her by registering a new RCMM.
Any RCMM working with a firm continues to be free to transfer to another firm or to become independent, but the firm he/she is leaving will not have the right of replacing him/her by registering a new RCMM unless the existing RCMM gives up his or her registration. Any RCMM firm will continue to have the choice to hire an existing RCMM as a replacement. 7 *Id.* As noted in the Release, 8 the Exchange will promptly file for approval with the Commission any changes to its rules that the Exchange determines are warranted upon completion of its review of the future viability of CTs and RCMMs.
The review is currently estimated to be completed on or about June 30, 2006. 8 *See id.* 2. Statutory Basis The Exchange believes that the basis under the Act for this proposed rule change is the requirement under Section 6(b)(5) 9 that an exchange have rules that are designed to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, 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. 9 15 U.S.C. 78f(b)(5).
B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others The Exchange has neither solicited nor received written comments on the proposed rule change. III. 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)does not become operative for 30 days after the date of the 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 10 and Rule 19b-4(f)(6) thereunder. 11 10 15 U.S.C. 78s(b)(3)(A). 11 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 Exchange has requested that the Commission waive the 5-day pre-filing notice requirement. The Commission has determined to waive this requirement. 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. 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-NYSE-2006-11 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-NYSE-2006-11. 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 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-NYSE-2006-11 and should be submitted on or before April 21, 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. E6-4674 Filed 3-30-06; 8:45 am] BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-53548; File No. SR-Phlx-2005-42] Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Notice of Filing of Proposed Rule Change and Amendment Nos. 1, 2 and 3 Thereto Relating to Establishment of a Neutral “Referee” March 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 June 10, 2005, the Philadelphia Stock Exchange, Inc. (“Phlx” or “Exchange”) filed with the Securities and Exchange Commission (“SEC” or “Commission”) the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Phlx. On June 20, 2005, the Phlx filed Amendment No. 1 to the proposed rule change. 3 On February 16, 2006, the Phlx filed Amendment No. 2 to the proposed rule change. 4 On March 10, 2006, the Phlx filed Amendment No. 3 to the proposed rule change. 5 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, the Phlx indicated that the Exchange's Board of Governors approved the proposed amendment to Exchange By-Law Article X, Section 10-9 for filing with the Commission on June 15, 2005. 4 Amendment No. 2 superseded and replaced in their entirety the orginal filing and Amendment No. 1 thereto. 5 In Amendment No. 3, the Phlx made minor changes to the purpose section and rule text of the proposed rule change. I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Phlx proposes to amend:
(1)Exchange By-Law Article X, Section 10-9, Audit Committee;
(2)Exchange Rule 124, Disputes; Exchange Rule 1092, Obvious Errors;
(3)Option Floor Procedure Advice (“OFPA”) F-27, Floor Official Rulings—Options; OFPA G-2, Trading Rotations, Halts or Reopenings; and
(4)Equity Floor Procedure Advice (“EFPA”) F-27, Floor Official Rulings—Equity. The proposal would establish a neutral “Referee,” an Exchange employee or independent contractor who would have authority to review and rule on appeals from Floor Official rulings concerning the nullification and adjustment of trades, and authorize the Referee to make other initial rulings currently made only by Floor Officials. The text of the proposed rule change is set forth below. [Brackets] indicate deletions; *italics* indicate new text. PHILADELPHIA STOCK EXCHANGE, INC. BY-LAWS Article X Standing Committees Sec. 10-1.-10-8. No change. Audit Committee Sec. 10-9. (a)-(c) No change. *(d) The Audit Committee shall recommend for appointment by the Board of Governors a qualified Exchange employee or independent contractor, the Referee, to review Floor Official rulings concerning the nullification and/or adjustment of transactions, and to act in the capacity of a Floor Official respecting initial rulings concerning requests for relief from the requirements of certain Exchange rules, Equity Floor Procedure Advices and Option Floor Procedure Advices. The Audit Committee shall determine that the Referee has sufficient expertise in the area of securities trading to act in the capacity of a Floor Official respecting initial rulings concerning requests for relief and to conduct reviews of Floor Official rulings, and possesses sufficient knowledge of Exchange rules and the relevant sections of the Securities Exchange Act of 1934, as amended, and the rules thereunder.* PHILADELPHIA STOCK EXCHANGE, INC. RULES OF THE BOARD OF GOVERNORS Disputes Rule 124.
(a)Disputes occurring on and relating to the trading floor, if not settled by agreement between the members interested, shall be settled, if practicable, by vote of the members knowing of the transaction in question; if not so settled, they shall be settled by a Floor Official [summoned to the trading crowd] *designated by Market Surveillance to rule on the dispute.* In issuing decisions for the resolution of trading disputes, Floor Officials [may] *shall* institute the course of action deemed to be most fair to all parties under the circumstances at the time. A Floor Official may direct the execution of an order on the floor, or adjust the transaction terms or participants to an executed order on the floor. However, two Option Floor Officials may nullify a transaction if they determine the transaction to have been in violation of Rules 1014 (Obligations and Restrictions Applicable to Specialist and ROTs), 1015 (Quotation Guarantees), 1017 (Priority and Parity at Openings in Options), 1033 (Bids and Offers) or 1080 (AUTOM). Two Equity Floor Officials may nullify a transaction if they determine the transaction to have been in violation of Rules 110 (Bids and Offers—Precedence), 111 (Bids and Offers—Binding), 118 (Bids and Offers Outside Best Bid and Offer), 119 (Precedence of Highest Bid), 120 (Precedence of Offers at Same Price), 126 (Crossing), 203 (Agreement of Specialists), 218 (Customer Order Receives Priority), 229 (PACE System), 232 (Handling Orders When the Primary Market is Not Open for Free Trading), or 455 (Short Sales). This Rule 124(a) shall not apply to options transactions that are the result of an Obvious Error (as defined in Rule 1092). Options transactions that are the result of an Obvious Error shall be subject to the provisions and procedures set forth in Rule 1092.
(b)All rulings rendered by Floor Officials *or the Referee (as defined in Commentary .02 to this Rule)* are effective immediately and must be complied with promptly. Failure to promptly comply with *an initial Floor Official ruling or a Referee* [ruling] *decision upon review of a Floor Official ruling* concerning a trading dispute may result in referral to the Business Conduct Committee. Failure to promptly comply with other *Floor Official* rulings issued pursuant to Order and Decorum Regulations (Rule 60) or Floor Procedure Advices (Rule 970) and not concerning a trading dispute may result in an additional violation.
(c)Review—Floor Official [R] *r* ulings issued pursuant to Order and Decorum Regulations are reviewable pursuant to Rule 60. Floor Official rulings issued pursuant to Floor Procedure Advices are reviewable pursuant to Rule 970. All other Floor Official rulings are reviewable pursuant to paragraph
(d)of this Rule.
(d)Review of Floor Official Rulings (Trading Disputes)—[Options] *All* Floor Official rulings are reviewable by [a] *the Referee* [minimum of three members of the Sub-Committee on Rules and Rulings, a sub-committee of the standing committee, which shall be empowered to review such rulings, or the Chairperson of the standing committee (or his designee) if three Sub-Committee members cannot be promptly convened. Equity Floor Official Rulings are reviewable by a minimum of three members of the Floor Procedure Committee, or the Chairperson of the Floor Procedure Committee (or his designee) if three members cannot be promptly convened. This constitutes a Review Panel for Floor Official rulings. Any person who appeals an Options Floor Official ruling concerning a trading dispute and loses will be subject to a $250.00 fee upon a finding by the Review Panel, that such appeal is frivolous]. *(i) Market Surveillance staff must be advised within 15 minutes of a Floor Official's ruling that a party to such ruling has determined to appeal from such ruling to the Referee.* The Exchange may establish the procedures for the submission of a request for a review of a Floor Official ruling. Floor Official rulings *concerning the nullification or adjustment of transactions* may be sustained, overturned or modified by *the Referee* [a majority vote of the Review Panel members present]. In making a determination, the [Review Panel] *Referee* may consider facts and circumstances not available to the ruling Floor Official as well as action taken by the parties in reliance on the Floor Official's ruling ( *e.g.* , cover, hedge and related trading activity). [Decisions of the Review Panel will be considered final decisions of a standing floor committee and may be appealed to the Exchange's Board of Governors pursuant to Exchange By-Law Article XI.] *(ii) All decisions made by the Referee in connection with initial rulings on requests for relief and with the review of a Floor Official ruling pursuant to this paragraph
(d)shall be documented in writing and maintained by the Exchange in accordance with the record keeping requirements set forth in the Securities Exchange Act of 1934, as amended, and the rules thereunder.* *(iii) A member or member organization seeking the Referee's review of a Floor Official ruling shall be assessed a fee of $250.00 for each Floor Official ruling to be reviewed that is sustained and not overturned or modified by the Referee.* *(iv) Decisions of the Referee concerning
(A)the review of Floor Official rulings relating to the nullification or adjustment of transactions, and
(B)initial requests for relief shall be final and may not be appealed to the Exchange's Board of Governors.* *(v) As appropriate, the Chairman of the Options Committee, Foreign Currency Options Committee, or of the Floor Procedure Committee, or their respective designees, shall refer a Referee that fails to make any ruling in accordance with Exchange rules to the Audit Committee for possible disciplinary action, including removal. A Floor Official that fails to make any ruling in accordance with Exchange rules may be subject to possible disciplinary action by the Exchange.* *(vi) Failure to promptly comply with a Floor Official or Referee decision under this Rule may result in referral to the Business Conduct Committee.* Commentary: .01. No change. *.02. The Referee.* *(a) An Exchange employee or independent contractor, the Referee, shall be appointed by the Board of Governors on the recommendation of the Audit Committee to review Floor Official rulings concerning the nullification and adjustment of transactions in accordance with Rule 124(d), and to act in the capacity of a Floor Official respecting initial rulings concerning requests for relief from the requirements of Exchange Rules relating to:* *(i) bid/ask differentials pursuant to Rule 1014(c) and Options Floor Procedure Advice (“OFPA”) F-6;* *(ii) disengagement of Exchange automatic execution systems pursuant to Rule 1080(e) and OFPA A-13;* *(iii) the determination pursuant to Rule 1080(c)(i) that quotes in options on the Exchange or another market or markets are subject to relief from the firm quote requirement set forth in the SEC Quote Rule, as defined in Exchange Rule 1082(a)(iii) (the “Quote Rule”), and that quotes in options on the Exchange or another market or markets previously subject to such relief are no longer subject to such relief; and* *(iv) trading halts, openings and re-openings pursuant to Rules 1017, 1047 and 1047A and OFPAs A-12, A-14 and G-2.* *(b) The Audit Committee shall recommend for appointment by the Board of Governors any other Exchange employee(s) or independent contractor(s) to function as the Referee in the event that the Referee is unavailable (“Backup Referees”) as set forth in Commentary .02(f) below. The Exchange's rules and procedures applicable to the Referee shall also apply to Backup Referees, and any reference to the Referee in these rules shall be deemed to include Backup Referees.* *
(c)The Referee shall be an employee of the Exchange or an independent contractor designated by the Audit Committee. The Referee shall not be a member of the Exchange nor affiliated with any Exchange member or member organization and shall not be an immediate family member of any Exchange member. The Referee shall not be a debtor or creditor of any Exchange member or member organization. * *(d) The Audit Committee shall have supervision over the Referee, and, based on the advice of the Exchange's General Counsel and Human Resources management, may recommend the level of compensation of the Referee to the Board of Governors, and may establish other conditions of employment of the Referee. The Audit Committee or its designee shall conduct annual performance evaluations, and shall consider any written complaints from members and member organizations concerning the Referee. The Audit Committee shall not have the authority to overrule or modify any ruling made by the Referee. The Audit Committee may terminate the employment of the Referee for good cause shown, and may otherwise discipline the Referee as appropriate for good cause shown.* *(e) The Exchange's General Counsel or his or her designee may assign additional duties and responsibilities to the Referee not related to Referee rulings. Notwithstanding the foregoing, the Referee shall not:* *(i) participate in any Exchange enforcement action, investigation, market surveillance activity, hearing (other than as a witness) or other activity related to disciplinary matters;* *(ii) issue citations for violations of Exchange rules;* *(iii) rule on any matter concerning order and decorum pursuant to Exchange Rule 60 and the regulations thereunder; and* *(iv) prepare, research, draft, review, or file a proposed rule change with the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934 and the rules thereunder concerning the Exchange's disciplinary rules.* *(f) If the Referee is unavailable or unable to make a ruling for any reason (including, without limitation, absence from the Exchange trading floor, vacation, illness, or in the process of making another Referee ruling), Market Surveillance staff will immediately notify the Exchange's General Counsel, or his/her designee, who would designate a Backup Referee to make such a ruling.* *(g) The Referee shall make fair and impartial rulings in accordance with Exchange rules and By-Laws.* PHILADELPHIA STOCK EXCHANGE, INC. OPTIONS RULES Obvious Errors Rule 1092. The Exchange shall either nullify a transaction or adjust the execution price of a transaction that results in an Obvious Error as provided in this Rule. (a)-(e) No change.
(f)Request for Review. If a party affected by a determination made under this Rule so requests within the time permitted, [a Review Panel of Floor Officials] *the Referee* will review decisions made under this Rule in accordance with Exchange Rule 124(d). A request for review under this paragraph must be made within thirty minutes after a party receives verbal notification of a final determination by the Floor Official(s) under this Rule, except that if such notification is made after 3:30 p.m. Eastern Time, either party has until 9:30 a.m. Eastern Time on the next trading day to request a review. Such a request for review must be in writing or otherwise documented. The [Review Panel] *Referee* shall review the facts and render a decision on the day of the transaction, or the next trade day in the case where a request is properly made after 3:30 p.m. on the day of the transaction or where the request is properly made the next trade day. PHILADELPHIA STOCK EXCHANGE, INC. OPTIONS FLOOR PROCEDURE ADVICES AND ORDER AND DECORUM REGULATIONS F-27 Floor Official Rulings-Options Floor Officials are empowered to render rulings on the trading floor to resolve trading disputes occurring on and respecting activities on the trading floor. All rulings rendered by Floor Officials are effective immediately and must be comp[i]l *i* ed with promptly. Failure to promptly comply with a ruling concerning a trading dispute may result in referral to the Business Conduct Committee. Failure to promptly comply with other rulings issued pursuant to Order and Decorum Regulations or Floor Procedure Advices and not concerning a trading dispute may result in an additional violation. Floor Officials need not render decisions in any instance where the request for a ruling was not made within a reasonable period of time. A Floor Official should not render a decision or authorize a citation where such Floor Official was involved in or affected by the dispute, as well as in any situation where the Floor Official is not able to objectively and fairly render a decision. Floor Officials shall endeavor to be prompt in rendering decisions. However, in any instance where a Floor Official has determined that the benefits of further discovery as to the facts and circumstances of any matter under review outweigh the monetary risks of a delayed rulings, the Floor Official may determine to delay rendering the ruling until such time as that further discovery is completed. In issuing decisions for the resolution of trading disputes, Floor Officials shall institute the course of action deemed by the ruling [f] *F* loor Official to be more fair to all parties under the circumstances at the time. A Floor Official may direct the execution of an order on the floor, o[f] *r* adjust the transaction terms or participants to an executed order on the floor. However, two Floor Officials may nullify a transaction if they determine the transaction to have been in violation of Rules 1014 (Obligations and Restrictions Applicable to specialist and ROTs), 1015 (Quotation Guarantees), 1017 (Priority and Parity at Openings in Options), 1033 (Bids and Offers) or 1080 (AUTOM). [A minimum of three members of the Sub-Committee on Rules and Rulings, a sub-committee of the standing committee, or the Chairperson of the standing committee (or his designee) if three Sub-Committee members cannot be promptly convened, shall be empowered by the standing committee to review Floor Official rulings (“Review Panel”). Requests for a review must be submitted to the Director of the Market Surveillance Department of the Exchange (or his designee) within 15 minutes from the time the contested ruling was rendered. Any person who appeals a Floor Official ruling concerning a trading dispute and loses will be subject to a $250.00 fee upon a finding by the Review Panel that such appeal is frivolous. The Review Panel shall endeavor to meet on the matter as soon as practicable after notice of a request for a review of a Floor Official ruling. Floor Official rulings may be sustained, overturned or modified by a majority vote of the Review Panel members present. In making a determination, the Review Panel may consider facts and circumstances not available to the ruling Floor Official as well as action taken by the parties in reliance on the Floor Official's ruling ( *e.g.* , cover, hedge, and related trading activity). Decisions of the Review Panel will be considered final decisions of the standing committee and may be appealed to the Exchange's Board of Governors pursuant to Exchange By-Law Article XI. Neither Floor Official rulings nor Review Panel decisions reviewing Floor Official rulings preclude a person from also availing upon the Exchange's Arbitration facilities.] Exchange staff may determine that a Floor Official is ineligible to participate in a particular ruling where it appears that such Floor Official has a conflict of interest. For purposes of this Rule, and without limitation, a conflict of interest exists where a Floor Official:
(a)Is directly or indirectly affiliated with a party seeking a Floor Official ruling;
(b)is a participant or is directly or indirectly affiliated with a participant in a transaction that is the subject of a Floor Official ruling;
(c)is a debtor or creditor of a party seeking a Floor Official ruling; or
(d)is an immediate family member of a party seeking a Floor Official ruling. Exchange staff may consider other circumstances, on a case-by-case basis, in determining the eligibility or ineligibility of a particular Floor Official to participate in a particular ruling due to a conflict of interest. *All Floor Official rulings concerning the adjustment and nullification of transactions are reviewable by the Referee (as defined in Rule 124).* *(i) Market Surveillance staff must be advised within 15 minutes of a Floor Official's ruling that a party to such ruling has determined to appeal from such ruling to the Referee. The Exchange may establish the procedures for the submission of a request for a review of a Floor Official ruling. Floor Official rulings concerning the nullification or adjustment of transactions may be sustained, overturned or modified by the Referee. In making a determination, the Referee may consider facts and circumstances not available to the ruling Floor Official as well as action taken by the parties in reliance on the Floor Official's ruling (e.g., cover, hedge and related trading activity).* *(ii) All decisions made by the Referee in connection with initial rulings on requests for relief and with the review of a Floor Official ruling pursuant to Rule 124(d) shall be documented in writing and maintained by the Exchange in accordance with the record keeping requirements set forth in the Securities Exchange Act of 1934, as amended, and the rules thereunder.* *(iii) A member or member organization seeking the Referee's review of a Floor Official ruling shall be assessed a fee of $250.00 for each Floor Official ruling to be reviewed that is sustained and not overturned or modified by the Referee.* *(iv) Decisions of the Referee concerning
(A)the review of Floor Official rulings relating to the nullification or adjustment of transactions, and
(B)initial requests for relief shall be final and may not be appealed to the Exchange's Board of Governors.* *(v) As appropriate, the Chairman of the Options Committee, Foreign Currency Options Committee, or of the Floor Procedure Committee, or their respective designees, shall refer a Referee that fails to make any ruling in accordance with Exchange rules to the Audit Committee for possible disciplinary action, including removal. A Floor Official that fails to make any ruling in accordance with Exchange rules may be subject to possible disciplinary action by the Exchange.* *(vi) Failure to promptly comply with a Floor Official or Referee decision under this Rule may result in referral to the Business Conduct Committee.* FINE SCHEDULE $250.00 G-2 Trading Rotations, Halts or Reopenings (a)-(b) No change.
(c)Halts: Trading on the Exchange in any option may be halted with the approval of [one] *two* Floor Official *s, with the concurrence of a Market Surveillance officer,* whenever trading on the primary market in underlying securities representing more than 10% of the current index value is halted or suspended. Trading shall be halted whenever [the Exchange] *two Floor Officials, with the concurrence of a Market Surveillance officer,* deem[s] such action appropriate in the interests of a fair and orderly market and to protect investors. Among the factors that may be considered are the following: (i)-(iii) No change. (d)-(f) No change. PHILADELPHIA STOCK EXCHANGE, INC. EQUITY FLOOR PROCEDURE ADVICES AND ORDER & DECORUM REGULATIONS F-27 Floor Official Rulings—Equity Floor Officials are empowered to render rulings on the trading floor to resolve disputes occurring on and respecting activities on the trading floor. All rulings rendered by Floor Officials are effective immediately and must be compiled with promptly. Failure to promptly comply with a ruling concerning a trading dispute may result in referral to the Business Conduct Committee. Failure to promptly comply with other rulings issued pursuant to Order and Decorum Regulations of Floor Procedures Advices and no[r] *t* concerning a trading dispute may result in an additional violation. Floor Officials need not render decisions in any instance where the request for a ruling was not made within a reasonable period of time. A Floor Official should not render a decision or authorize a citation where such Floor Official was involved in or affected by the dispute, as well as in any situation where the Floor Official is not able to objectively and fairly render a decision. Floor Officials shall endeavor to be prompt in rendering decisions. However, in any instance where a Floor Official has determined that the benefits of further discovery as to the facts and circumstances of any matter under review outweigh the monetary risks of a delayed ruling, the Floor Official may determine to delay rendering the ruling until such time as that further discovery is completed. In issuing decisions for the resolution of trading disputes, Floor Officials shall institute the course of action deemed by the ruling Floor Official to be most fair to all parties under the circumstances at the time. A Floor Official may direct the execution of an order on the floor, or adjust the transaction terms or participants to an executed order on the floor. However, two Floor Officials may nullify a transaction if they determine the transaction to have been in violation of Rules 110 (Bids and Offers—Precedence), 111 (Precedence of Highest Bid), 120 (Precedence of Offers at Same Price), 126 (Crossing), 203 (Agreement of Specialists), 218 (Customer's Order Receives Priority), 229 (PACE System), 232 (Handling Orders When the Primary Market is Not Open for Free Trading), or 455 (Short Sales). [Equity Floor Official Rulings are reviewable by a minimum of three members of the Floor Procedure Committee, or the Chairperson of the Floor Procedure Committee (or his designee) if three members cannot be promptly convened (“Review Panel”). Requests for a review must be submitted to the Director of the Market Surveillance Department of the Exchange (or his designee) within 15 minutes from the time the contested ruling was rendered. The Review Panel shall endeavor to meet on the matter as soon as practicable after notice of a request for a review of a Floor Official ruling. Floor Official rulings may be sustained, overturned or modified by a majority vote of the Review Panel members present. In making a determination, the Review Panel may consider facts and circumstances not available to the ruling Floor Official as well as action taken by the parties in reliance on the Floor Official's ruling (e.g., cover, hedge, and related trading activity). Decisions of the Review Panel will be considered final decisions of a standing floor committee and may be appealed to the Exchange's Board of Governors pursuant to Exchange By-Law Article XI. Neither Floor Official rulings nor Review Panel decisions reviewing Floor Official rulings preclude a person from also availing upon the Exchange's Arbitration facilities.] *All Floor Official rulings concerning the adjustment and nullification of transactions are reviewable by the Referee (as defined in Rule 124).* *(i) Market Surveillance staff must be advised within 15 minutes of a Floor Official's ruling that a party to such ruling has determined to appeal from such ruling to the Referee. The Exchange may establish the procedures for the submission of a request for a review of a Floor Official ruling. Floor Official rulings concerning the nullification or adjustment of transactions may be sustained, overturned or modified by the Referee. In making a determination, the Referee may consider facts and circumstances not available to the ruling Floor Official as well as action taken by the parties in reliance on the Floor Official's ruling (e.g., cover, hedge and related trading activity).* *(ii) All decisions made by the Referee in connection with initial rulings on requests for relief and with the review of a Floor Official ruling pursuant to Rule 124(d) shall be documented in writing and maintained by the Exchange in accordance with the record keeping requirements set forth in the Securities Exchange Act of 1934, as amended, and the rules thereunder.* *(iii) A member or member organization seeking the Referee's review of a Floor Official ruling shall be assessed a fee of $250.00 for each Floor Official ruling to be reviewed that is sustained and not overturned or modified by the Referee.* *(iv) Decisions of the Referee concerning
(A)the review of Floor Official rulings relating to the nullification or adjustment of transactions, and
(B)initial requests for relief shall be final and may not be appealed to the Exchange's Board of Governors.* *(v) As appropriate, the Chairman of the Options Committee, Foreign Currency Options Committee, or of the Floor Procedure Committee, or their respective designees, shall refer a Referee that fails to make any ruling in accordance with Exchange rules to the Audit Committee for possible disciplinary action, including removal. A Floor Official that fails to make any ruling in accordance with Exchange rules may be subject to possible disciplinary action by the Exchange.* *(vi) Failure to promptly comply with a Floor Official or Referee decision under this Rule may result in referral to the Business Conduct Committee.* NO FINE SCHEDULE APPLICABLE. 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 Phlx 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 Phlx 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 improve the process of resolving trading disputes and Floor Official rulings by creating a new regulatory position on the Exchange, who would be either an Exchange employee or an independent contractor known as a neutral “Referee.” The Referee would have the authority to:
(1)Review and rule on appeals from Floor Official rulings concerning the nullification or adjustment of trades; and
(2)act in the capacity of a Floor Official respecting initial rulings concerning requests for relief from the requirements of certain Exchange rules, Equity Floor Procedure Advices, 6 and Option Floor Procedure Advices. 7 6 The Exchange clarified that a Referee may also have the authority to act in the capacity of a Floor Official respecting initial rulings concerning requests for relief from the requirements of Equity Floor Procedure Advices. Telephone conversation between Richard Rudolph, Vice President and Counsel, Phlx, and Jennifer Dodd, Special Counsel, Division of Market Regulation, Commission, on March 10, 2006 (“Telephone Conversation”). 7 Floor Officials would retain their authority to make such initial rulings. The Referee would simply have the same authority as a Floor Official concerning such initial rulings. *Current Floor Official Program.* Pursuant to Exchange By-Law Article VIII, Floor Officials, as designees 8 of the Chairmen of the Options Committee, 9 Floor Procedure Committee, 10 and Foreign Currency Options Committee, 11 respectively, are authorized to administer the provisions of Exchange By-Laws and Rules of the Exchange pertaining to the respective trading floors and the immediately adjacent premises of the Exchange. They may impose penalties as applicable, for breaches of the Exchange's rules or regulations relating to order, decorum, health, safety and welfare on the respective trading floors. Additionally, they may rule to nullify, or adjust the terms of, executed trades under specific and limited conditions contained in Exchange rules, and may grant relief from certain requirements of on-floor members and member organizations if authorized to do so by rule. 8 The designees of the respective floor Committee chairmen are generally members of the respective committees and subcommittees thereof. 9 The Options Committee has general supervision of the dealings of members on the options trading floor. *See* Exchange By-Law Article X, Section 10-20. 10 The Floor Procedure Committee has general supervision of the dealings of members on the equity trading floor. *See* Exchange By-Law Article X, Section 10-16. 11 The Foreign Currency Options Committee has general supervision of the dealings of members on the foreign currency options trading floor. *See* Exchange By-Law Article X, Section 10-17. Currently, Floor Official rulings and appeals for review from such rulings are governed by Exchange Rule 124, Disputes. Rule 124(d) provides that Options Floor Official rulings may be appealed to a Review Panel consisting of three members of the Options Subcommittee on Rules and Rulings (the “Subcommittee”), 12 or the Chairperson of the standing committee (or his designee) if three Subcommittee members cannot be promptly convened, and Equity Floor Official rulings may be appealed to a Review Panel consisting of three members of the Floor Procedure Committee, or the Chairperson of the Floor Procedure Committee (or his designee) if three members cannot be promptly convened. 13 Decisions of the Review Panel are considered final decisions of the standing committee and may be appealed to an Advisory Committee on Appeals of the Board of Governors. 12 Each Standing and Special Committee may appoint such subcommittees as it may deem necessary for the efficient discharge of its duties. *See* Exchange By-Law Article X, Section 10-3(b). The Options Committee has appointed the Subcommittee to review and recommend the adoption of new rules or the amendment of current rules to the full Options Committee, and to discuss rulings made on the floor of the Exchange by Floor Officials. 13 The Exchange clarified the current process for Equity Floor Official rulings. Telephone Conversation. Floor Officials are also authorized to rule on requests for relief from the requirements of certain rules, including, without limitation, quote spread parameters, 14 and disengagement of Exchange automatic execution systems under extraordinary circumstances. 15 14 Relief from the established bid/ask differentials may be granted upon the receipt of an approval of two Floor Officials. *See* OFPA F-6. 15 *See* Exchange Rule 1080(e). *The Referee.* The Referee would be either an Exchange employee or an independent contractor who is not an employee of the Exchange who has entered into an employment contract with the Exchange for a fixed period of time. The Referee would be appointed by the Exchange's Board of Governors pursuant to the recommendation of the Audit Committee. Candidates for the Referee position would be recruited in the same fashion as candidates for other Exchange positions through the Exchange's Human Resources Department. After conducting an interview process with the various candidates, the Audit Committee would recommend its selection to the Board of Governors, who would then vote on the Audit Committee's recommendation. Upon the Commission's approval of this proposal, the Referee would be appointed to the new position. The proposal would provide that decisions of the Referee concerning both
(i)the review of Floor Official rulings relating to the nullification or adjustment of transactions, and
(ii)and initial requests for relief, would be final and may not be appealed to the Exchange's Board of Governors. 16 The Referee would be authorized to sustain, overturn, or modify rulings made by Floor Officials and to make initial rulings in certain instances (as described below). 16 The Exchange clarified that a Referee may review Floor Official rulings relating to the nullification or adjustment of transactions. Telephone Conversation. Because the Referee would be authorized to review Floor Official decisions to nullify or adjust trades on both the Exchange's equity and options floors, the proposed rule change includes conforming amendments to OFPA F-27 and to EFPA F-27 concerning such reviews of Floor Official rulings, as discussed more fully below. As stated above, Floor Officials are authorized to rule on requests for relief from the requirements of certain rules, including, without limitation, quote spread parameters and disengagement of Exchange automatic execution systems under extraordinary circumstances. The proposed rule change would authorize the Referee to make such rulings in the same manner as Floor Officials. In order to ensure the neutrality of the Referee, the Referee would report to the Exchange's Audit Committee, 17 which would have supervision over the Referee. The Exchange's General Counsel or his/her designee would be responsible for purely administrative matters such as, without limitation, personnel issues and vacation. Additionally, based on the advice of the Exchange's General Counsel and Human Resources management, the Audit Committee may recommend the level of compensation of the Referee to the Board of Governors, and may establish other conditions of employment of the Referee. The Audit Committee or its designee would conduct annual performance evaluations, and would consider any written complaints from members and member organizations concerning the Referee. The Audit Committee would not, however, have the authority to overrule or modify any ruling made by the Referee. The Audit Committee would have the authority to terminate the employment of the Referee for good cause shown, and to otherwise discipline the Referee as appropriate for good cause shown. 17 *See* proposed Exchange By-Law Article X, Section 10-9. The Referee would have jurisdiction over all Exchange trading floors and systems, except with regard to issues of order and decorum pursuant to Exchange Rule 60. The Options Committee would continue to have jurisdiction over order and decorum issues on the options floor; 18 the Floor Procedure Committee would continue to have jurisdiction over order and decorum issues on the equity floor; 19 and the Foreign Currency Options Committee would continue to have jurisdiction over order and decorum issues on the foreign currency options floor. 20 18 *See* Exchange By-Law Article X, Section 10-20. 19 *See* Exchange By-Law Article X, Section 10-16. 20 *See* Exchange By-Law Article X, Section 10-17. The proposed rule change would provide that the Audit Committee would recommend for appointment by the Board of Governors other Exchange employee(s) or independent contractor(s) to function as the Referee in the event that the Referee is unavailable (“Backup Referees”). The Exchange's rules and procedures, including qualifications, applicable to the Referee would also apply to Backup Referees, and any reference to the Referee in the proposed rules would be deemed to include Backup Referees. This is to ensure that a Backup Referee would be available if the Referee is not available due to, for example, a ruling on another matter that is in progress, vacation, illness, etc. The proposal also would provide that the Market Surveillance staff would assign available Floor Officials to rule on disputes. The Exchange believes that this provision should ensure the neutrality of Floor Officials by assigning the next available Floor Official to rule on a particular matter. *Qualifications of the Referee.* Under the proposal, the Referee would be required to have sufficient expertise in the area of trading to act in the capacity of a Floor Official concerning requests for relief and to conduct reviews of Floor Official rulings concerning the nullification and adjustment of trades. The Referee must possess sufficient knowledge of Exchange rules and the relevant sections of the Act (and the rules thereunder) to administer the Referee's responsibilities and authority. In order to ensure neutrality, the proposal would provide that the Referee may not be a member of the Exchange, may not be directly or indirectly affiliated with any Exchange member or member organization, and may not be an immediate family member of any Exchange member. The Referee may not be a debtor or creditor of any Exchange member or member organization. *Duties of the Referee.* The primary responsibility of the Referee would be to rule on appeals from Floor Official decisions concerning the nullification and adjustment of trades, and to have the same authority as Floor Officials concerning rulings on member requests for relief from the requirements of certain rules. The Referee would replace the current three-member Review Panel, which is currently comprised of Floor Officials, and would be authorized to review Floor Official rulings concerning the adjustment of the terms of a trade, or the nullification or “bust” of trades on appeal, and either uphold, overturn, or modify appealed Floor Official rulings pursuant to proposed amended Rule 124. If the Referee is unavailable or unable to make a ruling for any reason (including, without limitation, absence from the Exchange trading floor, vacation, illness, or in the process of making another Referee ruling), Market Surveillance staff will immediately notify the Exchange's General Counsel, or his designee, who would designate a Backup Referee to make such a ruling. The proposed rule change would provide that the Exchange's General Counsel or his or her designee may assign additional duties and responsibilities to the Referee not related to Referee rulings. In order to ensure the Referee's neutrality respecting any matter on which he or she is to rule, and to avoid the possibility that the Referee could be biased as a result of his or her knowledge of any pending investigation or disciplinary action concerning a person that is a party to a dispute or that requests relief from the requirements of an Exchange rule, the proposal would prohibit the Referee from:
(i)Participating in any Exchange enforcement action, investigation, market surveillance activity, hearing (other than as a witness) or other activity related to disciplinary matters;
(ii)issuing citations for violations of Exchange rules;
(iii)ruling on any matter concerning order and decorum pursuant to Exchange Rule 60 and the regulations thereunder; and
(iv)preparing, researching, drafting, reviewing, or filing of a proposed rule change with the Commission pursuant to the Act and the rules thereunder concerning the Exchange's disciplinary rules. The proposed rules would require the Referee to make fair and impartial decisions in accordance with Exchange rules and By-Laws. *Procedures for Review of Floor Official Rulings.* Proposed amended Rule 124(d), OFPA F-27, and EFPA F-27 would require that Market Surveillance staff be advised within 15 minutes of a Floor Official ruling concerning the nullification or adjustment of a trade that a party to such ruling has determined to seek the Referee's review of such ruling. The purpose of the notification requirement is to provide reasonably prompt notice to Market Surveillance and to participants in a trade subject to the rule that such ruling is subject to appeal and that the process set forth in the proposed rule has begun, and ultimately a decision to sustain, overturn, or modify the initial Floor Official decision concerning the trade will be made. 21 21 This is consistent with Exchange Rule 1092, Obvious Errors, which establishes a similar notice period. Under the proposal, Floor Official rulings made pursuant to Rule 1092 would be reviewed by the Referee, provided that the party seeking the review so requests within the time permitted. *See* proposed Rule 1092(f). As appropriate, the Chairman of the Options Committee, the Foreign Currency Options Committee or of the Floor Procedure Committee, or their respective designees, 22 would be required to refer a Referee that fails to make any ruling in accordance with Exchange rules to the Audit Committee for possible disciplinary action, including removal. A Floor Official that fails to make any ruling in accordance with Exchange rules may be subject to possible disciplinary action by the Exchange. 22 The Exchange clarified that the Chairman of the Foreign Currency Options Committee, or his designee, would also be required to refer a Referee to the Audit Committee for disciplinary action, if appropriate. Telephone Conversation. In order to minimize the likelihood of frivolous appeals from Floor Official rulings, a member or member organization seeking the Referee's review of a Floor Official ruling concerning the nullification or adjustment of a trade would be assessed a fee of $250.00 for each Floor Official ruling they seek to have reviewed if the Referee upholds the Floor Official decision. No fee would be assessed to the member or member organization seeking a review if the Floor Official decision is overturned or modified. This fee is currently imposed on options floor appeals that are found by the Review Panel to be frivolous. 23 The Exchange believes that the proposed rule concerning the $250.00 fee provides an objective standard for imposition of the fee ( *i.e.* , the fee would be imposed in situations where the Referee sustains a Floor Official ruling on the nullification or adjustment of a trade). Thus, the Referee would not have the discretion to impose the fee that Floor Officials currently have, and Exchange members and member organizations would have actual notice of the circumstances giving rise to the imposition of the fee. 23 This fee is not currently imposed on equity floor appeals. Telephone Conversation. *Rulings on Requests for Relief.* Proposed Rule 124, Commentary .02(a) would authorize the Referee to act in the capacity of a Floor Official respecting initial rulings concerning requests for relief from the requirements of Exchange Rules relating to:
(i)Bid/ask differentials pursuant to Rule 1014(c) and OFPA F-6;
(ii)disengagement of Exchange automatic execution systems pursuant to Rule 1080(e) and OFPA A-13;
(iii)the determination that quotes in options on the Exchange or another market or markets are subject to relief from the firm quote requirement pursuant to Exchange Rule 1080(c)(i); and
(iv)trading halts, openings and re-openings pursuant to Rules 1017, 1047 and 1047A and OFPAs A-12, A-14 and G-2. Rule 1014(c) and OFPA F-6 set forth the maximum allowable bid/ask differentials, or quote widths, that may be disseminated by specialists and ROTs on the Exchange, depending on the price of the series to be quoted. The Exchange believes that these requirements can have the unintended consequence of requiring those making markets to quote at prices that are unnecessarily narrow, thereby exposing them to great risk if markets move quickly. 24 Therefore, as stated in OFPA F-6, two Floor Officials may grant relief from these differentials during times of peak market activity where options markets and/or the market for securities underlying the option move quickly. Under the proposal, the Referee would have the same authority as a Floor Official to make such a ruling. 24 *See, e.g.,* Securities Exchange Act Release No. 50728 (November 23, 2004), 69 FR 69982 (December 1, 2004) (SR-Phlx-2004-74) (Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 by the Philadelphia Stock Exchange, Inc. Relating to $5 Bid/Ask Differentials). Rule 1080(e) and OFPA A-13 provide that, in the event extraordinary circumstances with respect to a particular class of options exist, two Floor Officials may determine to disengage AUTO-X with respect to that option, in accordance with Exchange procedures. The rule and OFPA go on to describe the procedures to be followed to bring about such disengagement. Under the proposal, the Referee would have the same authority as a Floor Official to make such a determination. Rule 1080(c)(i) provides that the Chairman of the Exchange's Options Committee or his designee (or if neither is available, two Floor Officials) may determine that quotes in options on the Exchange or another market or markets are subject to relief from the firm quote requirement set forth in the SEC Quote Rule, 25 (thereby excluding such quotes from the Exchange's calculation of the National Best Bid/Offer (“NBBO”)) and that quotes in options on the Exchange or another market or markets previously subject to such relief are no longer subject to such relief. The Referee would have the same authority as a Floor Official in making determinations concerning the above enumerated rules that require Floor Official rulings. 25 17 CFR 242.602. Rules 1017, 1047 and 1047A and OFPAs A-12, A-14 26 and G-2 govern trading halts, openings and re-openings on the Exchange. 27 Under the proposal, the Referee would have the same authority as a Floor Official to make rulings in the capacity of a Floor Official concerning rules that require Floor Official approval, as enumerated above. 26 The Exchange clarified that the Referee would also have the same authority as a Floor Official to make rulings in the capacity of a Floor Official under OFPA A-14. Telephone Conversation. 27 For consistency, the Exchange is proposing a conforming amendment to OFPA G-2, as described below. *Referee's Decision Final.* As stated above, currently decisions of the Review Panel are considered final decisions of the standing committee and may be appealed to an Advisory Committee on Appeals of the Board of Governors. Initial rulings to grant or deny relief from the requirements of certain rules are not currently considered final decisions of a standing committee and are thus not currently appealable to the Exchange's Board of Governors. The proposed rule change would provide that decisions of the Referee concerning
(A)the review of Floor Official rulings relating to the nullification or adjustment of transactions, and
(B)initial requests for relief, shall be final and may not be appealed to the Exchange's Board of Governors. The Exchange does not believe that these are the types of decisions that are appropriate for such appeals particularly because the need for speedy resolution and certainty are important, whereas other standing committee decisions are often prospectively applied. This provision would not operate to preclude any aggrieved member or member organization from proceeding with any other legal remedy to which such member or member organization might be entitled ( *e.g.* , arbitration or appeal to the Commission if allowable by law). *Obvious Errors.* The Exchange also proposes to amend Exchange Rule 1092, Obvious Errors. Currently, Rule 1092(f), Request for Review, provides that a Review Panel of Floor Officials will review decisions made under the Rule in accordance with Exchange Rule 124(d). For consistency, the Exchange proposes to amend Rule 1092(f) to provide that the Referee will review such decisions. *Conforming Amendment to OFPA G-2.* As a housekeeping matter, the Exchange proposes to amend OFPA G-2(c), to reflect that trading on the Exchange in any option may be halted with the approval of two Floor Officials, with the concurrence of a Market Surveillance officer. Current Rule 1047A(c) includes this provision, and the Exchange proposes to amend OFPA G-2 for consistency. 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act 28 in general, and furthers the objectives of Section 6(b)(5) of the Act 29 in particular, in that it is designed 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, by establishing a neutral Referee to rule on appeals from Floor Official decisions and to rule initially on requests for relief from certain requirements under Exchange rules. The Exchange further believes that the proposal is consistent with 6(b)(1) of the Act, 30 in that the proposal is designed to enable the Exchange to continue to comply, and to enforce compliance by its members and persons associated with its members, with the provisions of the Act, the rules and regulations thereunder, and the rules of the Exchange by improving the Exchange's Floor Official process and improving the review process of Floor Official rulings. 28 15 U.S.C. 78f(b). 29 15 U.S.C. 78f(b)(5). 30 15 U.S.C. 78f(b)(1). 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 either solicited or 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 Phlx consents, the Commission will:
(A)By order approve such proposed rule change, or
(B)Institute proceedings to determine whether the proposed rule change should be disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change, 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-Phlx-2005-42 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-Phlx-2005-42. 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 office of the Phlx. 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-Phlx-2005-42 and should be submitted on or before April 21, 2006. For the Commission, by the Division of Market Regulation, pursuant to delegated authority. 31 31 17 CFR 200.30-3(a)(12). Nancy M. Morris, Secretary. [FR Doc. E6-4701 Filed 3-30-06; 8:45 am] BILLING CODE 8010-01-P SOCIAL SECURITY ADMINISTRATION Privacy Act of 1974, as Amended; New System of Records AGENCY: Social Security Administration (SSA). ACTION: Proposed new system of records and proposed routine uses. SUMMARY: In accordance with the Privacy Act (5 U.S.C. 552a(e)(4)) and (e)(11)), we are issuing public notice of our intent to establish a new system of records, entitled the *Representative Payee and Beneficiary Survey Data System* , 60-0370, and routine uses applicable to this system of records. Hereinafter, we will refer to the proposed system of records as the RPBSD system. We invite public comment on this proposal. DATES: We filed a report of the proposed new system of records and proposed routine use disclosures with the Chairman of the Senate Committee on Homeland Security and Governmental Affairs, the Chairman of the House Committee on Government Reform, and the Director, Office of Information and Regulatory Affairs, Office of Management and Budget on March 17, 2006. The proposed system of records and routine uses will become effective on April 26, 2006, unless we receive comments warranting them not to become effective. ADDRESSES: Interested individuals may comment on this publication by writing to the Executive Director, Office of Public Disclosure, Office of the General Counsel, Social Security Administration, Room 3-A-6 Operations Building, 6401 Security Boulevard, Baltimore, Maryland 21235-6401. All comments received will be available for public inspection at the above address. FOR FURTHER INFORMATION CONTACT: Contact Margo Wagner, Social Insurance Specialist, Disclosure Policy Team, Office of Public Disclosure, Office of the General Counsel, Social Security Administration, in Room 3-A-6 Operations Building, 6401 Security Boulevard, Baltimore, Maryland 21235-6401, telephone at
(410)965-1482, e-mail: *margo.wagner@ssa.gov* . SUPPLEMENTARY INFORMATION: I. Background and Purpose of the Proposed RPBSD System A. General Background The proposed new RPBSD system will support SSA's compliance with Section 107 of Pub. L. No. 108-203, the Social Security Protection Act of 2004, that amended Section 1110 of the Social Security Act (42 U.S.C. 1310) by mandating SSA to perform a study to determine how payments made to representative payees under Title II or Title XVI of the Social Security Act are managed and used on behalf of the beneficiaries of these programs. The proposed new system will maintain information collected during the course of a cross-sectional national survey of representative payees and a subsample of beneficiaries. The survey data in this proposed new system will be the basis for the mandated study and a subsequent report outlining the Agency's findings and recommendations for change or further review of SSA's representative payment policies. Information in this system will also be used for ongoing assessment of how payments made to representative payees are managed and used on behalf of beneficiaries. B. Collection and Maintenance of the Data for the RPBSD System The information that SSA will collect and maintain in the RPBSD system will consist of data gathered during a specific study period to assess SSA's representative payee policies. This data will include identifiable information, such as name, Social Security number
(SSN)and address of selected representative payees and beneficiaries who agree to participate in the associated survey and other pertinent information, such as financial account information related to benefit payments and information associated with the representative payee's particular responsibilities while acting in that capacity. We will retrieve information from the proposed system by using the individual's name and/or SSN. Thus, the RPBSD System will constitute a system of records under the Privacy Act. II. Proposed Routine Use Disclosures of Data Maintained in the Proposed RPBSD System A. Proposed Routine Use Disclosures 1. We are proposing to establish routine uses of information that will be maintained in the proposed RPBSD System as discussed below. To the Office of the President for the purpose of responding to an individual pursuant to an inquiry received from that individual or from a third party on his or her behalf. We will disclose information under this routine use only in situations in which an individual may contact the Office of the President, seeking that Office's assistance in a matter relating to information contained in this system of records. Information will be disclosed when the Office of the President makes an inquiry and indicates that it is acting on behalf of the individual whose record is requested. 2. To a congressional office in response to an inquiry from that office made at the request of the subject of a record. We will disclose information under this routine use only in situations in which an individual may ask his or her congressional representative to intercede in a matter relating to information contained in this system of records. Information will be disclosed when the congressional representative makes an inquiry and indicates that he or she is acting on behalf of the individual whose record is requested. 3. To a contractor under contract to the Social Security Administration (SSA), or under contract to another agency with funds provided by SSA, for the performance of research and statistical activities as directly related to this system of records. We will disclose information under this routine use only as necessary to enable a contactor to assist SSA in accomplishing an Agency function relating directly to this system of records. 4. To the Department of Justice (DOJ), a court or other tribunal, or another party before such tribunal when:
(a)The Social Security Administration (SSA), or any component thereof; or
(b)any SSA employee in his/her official capacity; or
(c)any SSA employee in his/her individual capacity where DOJ (or SSA where it is authorized to do so) has agreed to represent the employee; or
(d)the United States or any agency thereof where SSA determines that the litigation is likely to affect the operation of SSA or any of its components, is a party to litigation or has an interest in such litigation, and SSA determines that the use of such records by DOJ, a court or other tribunal, or another party before such tribunal, is relevant and necessary to the litigation, provided, however, that in each case SSA determines that such disclosure is compatible with the purpose for which the records were collected. We will disclose information under this routine use only as necessary to enable DOJ to effectively defend SSA, its components or employees in litigation involving the proposed new system of records and ensure that courts and other tribunals have appropriate information. 5. To student volunteers, individuals working under a personal service contract, and other workers who technically do not have the status of Federal employees, when they are performing work for the Social Security Administration (SSA), as authorized by law and they need access to personally identifiable information in SSA records in order to perform their assigned Agency functions. Under certain Federal statutes, SSA is authorized to use the service of volunteers and participants in certain educational, training, employment and community service programs. Examples of such statutes and programs include: 5 U.S.C. 3111 regarding student volunteers and 42 U.S.C. 2753 regarding the College Work-Study Program. We contemplate disclosing information under this routine use only when SSA uses the services of these individuals and they need access to information in this system to perform their assigned Agency duties. B. Compatibility of Proposed Routine Uses The Privacy Act (5 U.S.C. 552a(b)(3)) and our disclosure regulations (20 CFR part 401) permit us to disclose information under a published routine use for a purpose that is compatible with the purpose for which we collected the information. Section 401.150(c) of SSA regulations permits us to disclose information under a routine use where necessary to carry out SSA programs. The proposed routine uses will ensure SSA's efficient administration of its programs related to the Agency's representative payment policies. Thus, all routine uses are appropriate and meet the relevant statutory and regulatory criteria. III. Record Storage Medium and Safeguards for the Information Maintained in the Proposed RPBSD System The proposed new system of records will maintain information in electronic and manual forms. Only authorized SSA and contractor personnel who have a need for the information in the performance of their official duties are permitted access to the information. We will safeguard the security of the information by requiring the use of access codes to enter the computer system that will maintain the data and will store computerized records in secured areas that are accessible only to employees who require the information in performing their official duties. Manually maintained records are kept in locked cabinets or in otherwise secure areas. All SSA personnel receive annual reminders of the need to protect personal data to which they have access for official purposes and are reminded of the criminal penalties that apply to unauthorized access to or disclosure of personal information. See 5 U.S.C. 552a(i)(1). Furthermore, SSA employees having access to SSA databases maintaining personal information must sign a sanction document annually, acknowledging their accountability for making unauthorized access to or disclosure of such information. Contractor personnel having access to data in the proposed system of records will be required to adhere to SSA rules concerning safeguards, access and use of the data. IV. Effect of the Proposed RPBSD System on the Rights of Individuals The proposed RPBSD system consists of data gathered during a specific period to assess SSA's representative payee policies and prepare a subsequent report outlining potential recommendations for change or further review. Participation in the survey is voluntary and selected individuals will be given the opportunity to agree to participate in the survey or decline to do so. SSA will adhere to all applicable provisions of the Privacy Act and other Federal statutes that govern our use and disclosure of the information that will be maintained in the proposed RPBSD system. Therefore, we do not anticipate that the proposed system of records will have any unwarranted adverse effect on the privacy or other rights of individuals. Dated: March 17, 2006. Jo Anne B. Barnhart, Commissioner. SYSTEM NUMBER: 60-0370 System name: Representative Payee and Beneficiary Survey Data System, Social Security Administration (SSA)/Office of Income Security Programs (OISP). Security classification: None. System location: Office of Income Support Programs, Social Security Administration, 6401 Security Boulevard, Baltimore, Maryland 21235-6401. Records may also be maintained at contractor sites. Contact the system manager at the address below to obtain contractor addresses. Categories of individuals covered by the system: This system maintains information about selected samples of representative payees and their beneficiaries receiving benefits under Title II and/or Title XVI of the Social Security Act. Categories of records in the system: Information in this system consists of data gathered during a specific study period to assess SSA's representative payee policies. This data will include identifiable information, such as name, Social Security number
(SSN)and address, and survey information concerning representative payee and beneficiary demographic characteristics, record identifiers, descriptions of residence and living situations, and relationship of beneficiaries to the representative payees. Survey data will also cover the beneficiary's financial account information related to the representative payee's responsibilities, information concerning both the beneficiary and representative payee's knowledge of actual representative payee duties, and their perceptions of the beneficiary's need for this particular relationship and how these duties are being performed. Some limited information such as SSN, monthly benefit amount and diagnostic codes from SSA's administrative records and from current systems maintaining information relative to the selection of representative payees to claimants and beneficiaries may also be captured in this system to supplement and effectively support SSA's use of the survey data. Authority for maintenance of the system: Section 107 of Pub. L. No. 108-203, the Social Security Protection Act of 2004, that amended Section 1110 of the Social Security Act (42 U.S.C. 1310). Purpose(s): Information in this system will assist SSA in assessing how payments made to representative payees, who are not subject to on-site reviews or other random reviews under SSA policy or law, are managed and used on behalf of the beneficiaries. Routine uses of records maintained in the system, including categories of users and the purpose of such uses: Disclosure may be made for routine uses as indicated below: 1. To the Office of the President for responding to an inquiry received from that individual or from a third party acting on that individual's behalf. 2. To a congressional office in response to an inquiry from that office made on behalf of a subject of a record. 3. To a contractor under contract to the Social Security Administration (SSA), or under contract to another agency with funds provided by SSA, for the performance of research and statistical activities as directly related to this system of records. 4. To Department of Justice (DOJ), a court or other tribunal, or another party before such tribunal when: a. The Social Security Administration (SSA), any component thereof, or b. Any SSA employee in his/her official capacity; or c. Any SSA employee in his/her individual capacity where DOJ (or SSA where it is authorized to do so) has agreed to represent the employee; or d. The United States or any agency thereof where SSA determines that the litigation is likely to affect the operations of SSA or any of its components, is a party to litigation or has an interest in such litigation, and SSA determines that the use of such records by DOJ, a court or other tribunal, or another party before such tribunal is relevant and necessary to the litigation, provided, however, that in each case, SSA determines that such disclosure is compatible with the purpose for which the records were collected. 5. To student volunteers, individuals working under a personal service contract, and other workers who technically do not have the status of Federal employees, when they are performing work for the Social Security Administration (SSA), as authorized by law and they need access to personally identifiable information in SSA records in order to perform their assigned Agency functions. Policies and practices for storing, retrieving, accessing, retaining and disposing of records in the system: Storage: Records in this system are maintained electronically and manually. Retrievability: Records in this system will be retrieved by the name or SSN of the representative payee, or name or SSN of the beneficiary/recipient. Safeguards: The system of records will maintain information in electronic and manual forms. Only authorized SSA and contractor personnel who have a need for the information in the performance of their official duties are permitted access to the information. We will safeguard the security of the information by requiring the use of access codes to enter the computer system that will maintain the data and will store computerized records in secured areas that are accessible only to employees who require the information in performing their official duties. Manually maintained records are kept in locked cabinets or in otherwise secure areas. Contractor personnel having access to data in the system of records will be required to adhere to SSA rules concerning safeguards, access and use of the data. SSA and contractor personnel having access to the data in this system will be informed of the criminal penalties of the Privacy Act for unauthorized access to, or disclosure of, information maintained in this system. *See* 5 U.S.C. 552a(i)(1). Retention and disposal: Survey data will be populated into the system via a flat file produced by SSA's Office of Systems from the Master Representative Payee File system of records using the criteria specified by section 205(j) of the Social Security Act. This flat file will also contain current beneficiary contact data from the Master Beneficiary Record and/or the Supplemental Security Income and Special Veterans Benefits Record systems of records and some limited information from SSA's administrative records. The system will cover only events related to the closed period of May through September of 2006, through the initial population of the database from SSA's RPS in March 2006. In order to comply with the National Archives and Records Administration regulations, data will be destroyed after a seven-year retention period per Records Schedule NC1-47-81-9. System manager and address: Associate Commissioner, Office of Income Security Programs, Social Security Administration, 6401 Security Boulevard, Baltimore, Maryland 21235-6401. Notification procedure: This system contains limited data selected for statistical analysis. Individuals inquiring about their records in SSA programs may wish to consult other SSA systems of records which contain more detailed information. An individual can determine if this system contains a record about him/her by writing to the systems manager at the above address and providing his/her name, SSN or other information that may be in the system of records that will identify him/her. An individual requesting notification of records in person should provide the same information, as well as provide an identity document, preferably with a photograph, such as a driver's license or some other means of identification. If an individual does not have any identification documents sufficient to establish his/her identity, the individual must certify in writing that he/she is the person claimed to be and that he/she understands that the knowing and willful request for, or acquisition of, a record pertaining to another individual under false pretenses, is a criminal offense. These procedures are in accordance with SSA's Regulations at 20 CFR 401.40(c). If notification is requested by telephone, an individual must verify his/her identity by providing identifying information that parallels information in the record to which notification is being requested. If it is determined that the identifying information provided by telephone is insufficient, the individual will be required to submit a request in writing or in person. If an individual is requesting information by telephone on behalf of another individual, the subject individual must be connected with SSA and the requesting individual in the same phone call. SSA will establish the subject individual's identity (his/her name, SSN, address, date and place of birth, along with one other piece of information, such as mother's maiden name) and ask for his/her consent in providing information to the requesting individual. These procedures are in accordance with SSA's Regulations at 20 CFR 401.40(c). If notification is requested by mail, an individual must include a notarized statement to SSA to verify his/her identity or must certify in the request that he/she is the person claimed to be and that he/she understands that the knowing and willful request for access to records concerning another individual under false pretense is a criminal offense. These procedures are in accordance with SSA Regulations at 20 CFR 401.40(c). Record access procedures: Same as Notification procedures. Also, an individual requesting access should reasonably identify and specify the information he/she is attempting to obtain. These procedures are in accordance with SSA Regulations (20 CFR 401.40(c)). Contesting record procedures: Same as Notification procedures. Requesters should also reasonably identify the record, specify the information they are contesting and the corrective action sought, and the reasons for the correction, with supporting justification showing how the record is untimely, incomplete, inaccurate, or irrelevant. These procedures are in accordance with SSA Regulations (20 CFR 401.65(a)). Record source categories: Information in this system of records is obtained from representative payees, beneficiaries and existing SSA systems of records such as the Master Beneficiary Record, 60-0090; Supplemental Security Income and Special Veterans Benefits Record, 60-0103; Master Representative Payee File, 60-0222; and survey data collected by the Contractor. Systems exempt from certain provisions of the Privacy Act: None. [FR Doc. E6-4666 Filed 3-30-06; 8:45 am] BILLING CODE 4191-02-P DEPARTMENT OF STATE [Public Notice 5358] Bureau of Educational and Cultural Affairs
(ECA)Request for Grant Proposals: Africa Workforce Development *Announcement Type:* New Grant. *Funding Opportunity Number:* ECA/PE/C/NEAAF-06-60. Catalog of Federal Domestic Assistance Number: 00.000. *Key Dates:* *Application Deadline:* May 18, 2006. *Executive Summary:* The Office of Citizen Exchanges of the Bureau of Educational and Cultural Affairs, United States Department of State, announces an open competition for grants to support programs promoting “Africa Workforce Development” through professional exchanges and collaboration. In carrying out a proposed program, roughly equal numbers of participants should travel between the U.S. and the focus African country. U.S. public and private non-profit organizations meeting the provisions described in Internal Revenue Code section 26 U.S.C. 501(c)(3) may submit proposals to develop and implement programs of exchange, collaboration and training that involve participants from Sub-Saharan Africa, including consultations, planning, and training conducted both in Sub-Saharan Africa and in the United States. These U.S. organizations should provide evidence of relevant expertise in Sub-Saharan Africa. Up to two grants not exceeding $200,000 each may be awarded. I. Funding Opportunity Description *Authority:* Overall grant-making authority for this program is contained in the Mutual Educational and Cultural Exchange Act of 1961, Public Law 87-256, as amended, also known as the Fulbright-Hays Act. The purpose of the Act is “to enable the Government of the United States to increase mutual understanding between the people of the United States and the people of other countries * * *; to strengthen the ties which unite us with other nations by demonstrating the educational and cultural interests, developments, and achievements of the people of the United States and other nations * * * and thus to assist in the development of friendly, sympathetic and peaceful relations between the United States and the other countries of the world.” The funding authority for the program above is provided through the Conference Report accompanying the FY-2006 Science, State, Justice, Commerce Appropriations Bill (Pub. L. 109-108) which earmarks $400,000 to support Africa Workforce Development. *Purpose:* The Bureau seeks proposals for exchange programs on African Workforce Development. In pursuit of that goal, proposals should also build a relevant professional partnership between the applicant organization and its African colleagues. Also, in carrying out the proposed program, roughly equal numbers of African and U.S. participants should travel between the U.S. and the focus African country and for roughly equal time periods. U.S.-African partnership is emphasized as a mutually beneficial, direct and efficient method of promoting this goal. Partnerships promote the interests and long-term commitment of African and American participants going beyond U.S. government financing. The Bureau encourages applicants to consider carefully the choice of target countries. Applicants should research the work of development agencies (such as USAID, UN agencies) on the target themes, and select countries for which there has been limited investment on the issue. Applicants are encouraged to contact the Public Affairs Sections
(PAS)in U.S. Embassies in Africa, and the Office of Citizen Exchanges, to discuss proposed activities and their relevance to mission priorities. It is the Bureau's intention to allocate one grant for work with South Africa and one grant for work in one of the following countries: Angola, Ethiopia, Liberia, or Sierra Leone. Therefore, proposals should focus on either South Africa or one of these four other countries, and each proposal should clearly identify the single country with which it would work. The Bureau offers the following programming ideas and suggestions. *Africa Workforce Development:* The purpose of this program is to enhance Workforce Development efforts in Sub-Saharan Africa through Citizen Exchanges. ECA has set the following broad goals for the program this year: • To help foster a more productive and fully employed workforce in Africa through collaboration between U.S. and African workforce development specialists; • To develop professional and personal linkages between African and U.S. host institutions and communities that will lead to sustained collaboration in workforce development; • To promote mutual understanding between cultures and societies in the U.S. and Africa. The Office realizes that there are many different approaches to workforce development, and it is open to a wide variety of program plans. However, in order to be eligible for consideration, each proposal must explain its methodology for assessing workforce development needs and explain how its choice of needs to be addressed in the proposed program is relevant to the focus country. In addition, the Office recommends that each applicant consider addressing the following objectives in its plan when they are relevant to the chosen country: • Assist citizens in making the transition from academia to the workforce; • Assist citizens in learning skills and attitudes which make them more employable; • Guide citizens in seeking jobs and in carrying them out satisfactorily; • Assist Africans in identifying workforce needs and developing plans to ameliorate those needs; • Develop programs which are adaptable to local and individual needs; and • Develop programs that will attract and maintain the attention of citizens, encouraging their initiative and commitment. South Africa poses a different challenge in workforce development from other African countries. For example, a substantial effort is already underway in entrepreneurial skills training. By contrast, an area that is weaker is that of market analysis to identify new areas in which to build businesses, especially in manufacturing and trade, and how to guide the unemployed workforce into new businesses. Given the favorable trade status that South Africa currently enjoys with the U.S., it would be valuable to develop skills in identifying opportunities for new businesses and in starting such new businesses that would lead to new jobs. Thus, proposals for South Africa should emphasize developing a class of “middle-men” in relatively disadvantaged communities who can identify export market potential, particularly building on the AGOA market-opening opportunities, and guide the development of new businesses for those opportunities. Of particular value would be plans to promote the talents of those who can bridge government-supported programs in skills development and small-scale entrepreneurship, linking them into new sales opportunities overseas, in order to create new jobs. The commitment of African partners will be essential to long-term program success, and applicants should consider the possibility of selecting African partners through a competitive process to assess their commitment and capability. II. Award Information *Type of Award:* Grant Agreement. ECA's level of involvement in this program is listed under number I above. *Fiscal Year Funds:* 2006. *Approximate Total Funding:* $400,000. *Approximate Number of Awards:* 2. *Approximate Average Award:* $200,000. *Anticipated Award Date:* Pending availability of funds, September 22, 2006. *Anticipated Project Completion Date:* June 2008. III. Eligibility Information III.1. *Eligible applicants:* Applications may be submitted by public and private non-profit organizations meeting the provisions described in Internal Revenue Code section 26 U.S.C. 501(c)(3). III.2. *Cost Sharing or Matching Funds:* Proposals that clearly demonstrate significant cost sharing—with 20% of the amount requested from ECA as the preferred minimum—will be judged more competitive. When cost sharing is offered, it is understood and agreed that the applicant must provide the amount of cost sharing as stipulated in its proposal and later included in an approved grant agreement. Cost sharing may be in the form of allowable direct or indirect costs. For accountability, grantees must maintain written records to support all costs that are claimed as cost sharing, as well as costs to be paid by the Federal government. Such records are subject to audit. The basis for determining the value of cash and in-kind contributions must be in accordance with OMB Circular A-110, (Revised), Subpart C.23—Cost Sharing and Matching. In the event the grantee does not provide the minimum amount of cost sharing as stipulated in the approved budget, the Bureau's contribution will be reduced in like proportion. III.3. *Other Eligibility Requirements:* a. Bureau policy stipulates that grants awarded to eligible organizations with less than four years of experience in conducting international exchange programs will be limited to $60,000. Since this competition seeks grantees that will conduct projects with Bureau support of approximately $200,000, applicants with less than four years of international exchange experience will not be eligible. IV. Application and Submission Information Note: Please read the complete announcement before sending inquiries or submitting proposals. Once the RFGP deadline has passed, Bureau staff may not discuss this competition with applicants until the proposal review process has been completed. IV.1 *Contact Information to Request an Application Package:* To obtain an application package for this competition, please see IV.2 below. To get other information, contact one of the officers listed in Section VII below near the end of this announcement. IV.2. *To Download a Solicitation Package Via Internet:* The entire Solicitation Package may be downloaded from the Bureau's Web site at *http://exchanges.state.gov/education/rfgps/menu.htm* or from the grants.gov Web site at *http://www.grants.gov* . Please read all information before downloading. IV.3. *Content and Form of Submission:* Applicants must follow all instructions in the Solicitation Package. Failure to do so may lead to the proposal being declared technically ineligible. The application should be sent per the instructions under IV.3e. “Submission Dates and Times section” below. IV.3a. Applicants are required to have a Dun and Bradstreet Data Universal Numbering System
(DUNS)number to apply for a grant or cooperative agreement from the U.S. Government. This number is a nine-digit identification number, which uniquely identifies business entities. Obtaining a DUNS number is easy, and there is no charge. To obtain a DUNS number, access *http://www.dunandbradstreet.com* or call 1-866-705-5711. Please ensure that your DUNS number is included in the appropriate box of the SF-424 which is part of the formal application package. IV.3b. All proposals must contain an executive summary, proposal narrative and budget. Please Refer to the Solicitation Package. It contains the mandatory Proposal Submission Instructions
(PSI)document for additional formatting and technical requirements. Failure to adhere to all of these requirements may lead to the proposal being declared technically ineligible. IV.3c. Applicants must have nonprofit status with the IRS at the time of application. If the applicant is a private nonprofit organization which has not received a grant or cooperative agreement from ECA in the past three years, or if the applicant received nonprofit status from the IRS within the past four years, it must submit the necessary documentation to verify nonprofit status as directed in the PSI document. Failure to do so will cause the proposal to be declared technically ineligible. IV.3d. Please take into consideration the following information when preparing your proposal narrative: IV.3d.1. *Adherence to All Regulations Governing the J Visa:* The Office of Citizen Exchanges of the Bureau of Educational and Cultural Affairs is the official program sponsor of the exchange program covered by this RFGP, and an employee of the Bureau will be the “Responsible Officer” for the program under the terms of 22 CFR part 62, which covers the administration of the Exchange Visitor Program (J visa program). Under the terms of 22 CFR part 62, organizations receiving grants under this RFGP will be third parties “cooperating with or assisting the sponsor in the conduct of the sponsor's program.” The actions of grantee program organizations shall be “imputed to the sponsor in evaluating the sponsor's compliance with” 22 CFR part 62. Therefore, the Bureau expects that any organization receiving a grant under this competition will render all assistance necessary to enable the Bureau to fully comply with 22 CFR part 62 *et seq.* The Bureau of Educational and Cultural Affairs places great emphasis on the secure and proper administration of Exchange Visitor (J visa) Programs and adherence by grantee program organizations and program participants to all regulations governing the J visa program status. Therefore, proposals should *explicitly state in writing* that the applicant is prepared to assist the Bureau in meeting all requirements governing the administration of Exchange Visitor Programs as set forth in 22 CFR part 62. If the applicant has experience as a designated Exchange Visitor Program Sponsor, the proposal should discuss their record of compliance with 22 CFR part 62 et seq., including the oversight of their Responsible Officers and Alternate Responsible Officers, screening and selection of program participants, provision of pre-arrival information and orientation to participants, monitoring of participants, proper maintenance and security of forms, recordkeeping, reporting and other requirements. Africans funded to any extent for travel to the United States on this program must obtain J visas. The Office of Citizen Exchanges of ECA will be responsible for issuing DS-2019 forms to apply for J visas. A copy of the complete regulations governing the administration of Exchange Visitor
(J)programs is available at *http://exchanges.state.gov* or from: United States Department of State, Office of Exchange Coordination and Designation, ECA/EC/ECD—SA-44, Room 734, 301 Fourth Street, SW., Washington, DC 20547. Telephone:
(202)401-9810. FAX:
(202)401-9809. IV.3d.2. *Diversity, Freedom and Democracy Guidelines:* Pursuant to the Bureau's authorizing legislation, programs must maintain a non-political character and should be balanced and representative of the diversity of American political, social, and cultural life. “Diversity” should be interpreted in the broadest sense and encompass differences including, but not limited to, ethnicity, race, gender, religion, geographic location, socio-economic status, and disabilities. Applicants are strongly encouraged to adhere to the advancement of this principle both in program administration and in program content. Please refer to the review criteria under the ‘Support for Diversity' section for specific suggestions on incorporating diversity into your proposal. Also, Public Law 104-319 provides that “in carrying out programs of educational and cultural exchange in countries whose people do not fully enjoy freedom and democracy,” the Bureau “shall take appropriate steps to provide opportunities for participation in such programs to human rights and democracy leaders of such countries.” Public Law 106-113 requires that the governments of the countries described above do not have inappropriate influence in the selection process. Proposals should reflect advancement of these goals in their program contents, to the fullest extent deemed feasible. IV.3d.3. *Program Monitoring and Evaluation:* Proposals must contain an evaluation plan that describes how the applicant organization intends to gather and analyze data on the project's effectiveness in achieving its outcomes. To be competitive, evaluation plans will include the following five components: a. A restatement of anticipated outcomes; b. A list of data the applicant would collect in order to assess progress toward each outcome; c. A description of how the applicant would collect the information (for example, through surveys); d. A draft timeline for collecting data; e. Draft questionnaires, surveys, focus group questions, or other instruments with which the applicant would gather quantitative and qualitative data. Proposals should indicate how each instrument would provide information on progress toward each project outcome. f. A statement of the methodology to be used in analyzing the data and drawing conclusions. *Statement of Anticipated Outcomes:* Proposals should indicate the category of each outcome such as participant satisfaction, participant learning, participant behavior, or institutional change. See examples below. *Data to Be Collected:* Each proposal should list the data that the applicant would collect. Applicants may use quantitative data or qualitative data to measure progress toward outcomes. Below are examples of data that applicants might collect for each type of outcome as well as sample survey questions that applicants might use to gather this data: Example 1: *Outcome:* Participants are satisfied with the exchange experience. *Outcome type:* Participant Satisfaction. *Data to be collected:* Percentage of participants who express satisfaction with the exchange experience based on an average of several factors. *Sample question:* On a scale of one to five (1 = very dissatisfied, 5 = very satisfied), please rate your satisfaction with
(a)project administration,
(b)content,
(c)variety of experiences,
(d)relevance to professional or educational development. Example 2: *Outcome:* Participants increase their abilities to analyze workforce development needs in their home communities. *Outcome type:* Participant Learning. *Data to be collected:* Percent of participants who improved their understanding of workforce development concepts and their ability to design relevant projects. *Sample question:* On a scale of one to four (1 = no or very limited ability, 4 = substantial ability), please rate your ability in the following areas:
(a)Knowledge of workforce development concepts,
(b)methodology to analyze workforce needs,
(c)design and management of workforce development classes,
(c)community outreach,
(d)resource management. Example 3: *Outcome:* Participants increase their participation and/or responsibility in community or civil society. *Outcome type:* Participant Behavior. *Data to be collected:* Percent of participants who increase their participation or level of responsibility. *Sample question:* As a direct result of your participation in the exchange, have you done or received any of the following in your community (answer yes or no to each item):
(a)Assumed a leadership role or position in your community,
(b)organized or initiated new activities or projects in your community,
(c)established a new organization in your community. Example 4: *Outcome:* Increased collaboration and linkages. *Outcome type:* Institutional changes. *Data to be collected:* Percent of participants who establish or continue professional collaboration. *Sample question:* Have you established or continued any professional collaboration that grew out of your exchange experience? (Answer yes or no). *Methods and Timeline:* Applicant organizations should plan to gather data a minimum of three times during the project in order to assess progress:
(1)Before exchange activities,
(2)mid-term in the program, and
(3)as a follow-up (approximately three-to-six months after exchange activities are completed). The exact timing depends on the nature of the project itself. Proposals should plan grant durations of sufficient length to collect follow-up information. Applicants should consider the timing of data collection for each level of outcome. For example, grantees may measure participant learning at the end of an activity since this is a shorter-term outcome. Behavioral and institutional outcomes are longer-term, and it might not be possible to assess them adequately until a follow-up survey. Pre-program surveys should collect baseline data as appropriate. *Draft data collection instruments:* Proposals should include sample surveys, lists of questions, or other instruments that the applicant organization proposes to use. Applicants should include samples of instruments they would use during each evaluation activity (pre-program, post-program, and follow-up). Evaluation plans should describe how the applicant will tabulate data, where the data will be kept, and who will have access to such data. Interim and final reports should provide summary data in tabular and graphic form as well as tabulated raw data. ECA may ask for immediate notice of information that indicates significant progress or delay in achieving outcomes. All data collected, including survey responses and contact information, must be maintained for a minimum of three years and provided to the Bureau upon request. IV.3e. *Budget:* Please take the following information into consideration when preparing the proposal budget: IV.3e.1. Applicants must submit a comprehensive budget for the entire program. That budget must include a summary budget as well as breakdowns reflecting both administrative and program budgets. Applicants are encouraged to provide separate sub-budgets for each program component, phase, location, or activity to provide clarification, as such details demonstrate good planning and often help proposal reviewers to understand financial planning. IV.3e.2. Allowable costs for the program include the following:
(1)Direct Program Expenses (including general program expenses, such as orientation and program-related supplies, educational materials, traveling campaigns, consultants, interpreters, and room rental; and participant program expenses, such as domestic and international travel and per diem).
(2)Administrative Expenses, including indirect costs (i.e. salaries, telephone/fax, and other direct administrative costs).
(3)Travel costs for visa processing purposes: All foreign participants coming to the United States with funding by any grant agreement resulting from this competition must travel on J-1 visas. Failure to secure a J-1 visa for the foreign participant will preclude charging the participant's cost to the grant agreement. Participants will apply for J-1 visas only after the Office of Citizen Exchanges and the mission Public Affairs Section or consulate have approved their participation in this program. The Office of Citizen Exchanges will issue the necessary DS-2019 forms and deliver them to foreign program visitors through the U.S. Embassy Public Affairs Section (PAS). All J visas for African program visitors must be distributed by the PAS in the target country, so proposals should include costs for potential participants to travel to those Posts to pick up DS-2019 forms and for visa interviews and processing. Please refer to the Solicitation Package for complete budget guidelines and formatting instructions. IV.3f. *Application Deadline and Methods of Submission:* *Application Deadline Date:* Thursday, May 18, 2006. *Reference Number:* ECA/PE/C/NEAAF-06-60. *Methods of Submission:* Applications may be submitted in one of two ways:
(1)In hard-copy, via a nationally recognized overnight delivery service ( *i.e.* , DHL, Federal Express, UPS, Airborne Express, or U.S. Postal Service Express Overnight Mail, etc.), or
(2)Electronically through *http://www.grants.gov.* Along with the Project Title, all applicants must enter the above Reference Number in Box 11 on the SF-424 contained in the mandatory Proposal Submission Instructions
(PSI)of the solicitation document. IV.3f.1. *Submitting Printed Hard-Copy Applications:* Due to heightened security measures, hard-copy proposal submissions must be sent via a nationally recognized overnight delivery service ( *i.e.* , DHL, Federal Express, UPS, Airborne Express, or U.S. Postal Service Express Overnight Mail, etc.) and be shipped no later than the above deadline. The delivery services used by applicants must have in-place, centralized shipping identification and tracking systems that may be accessed via the Internet and delivery people who are identifiable by commonly recognized uniforms and delivery vehicles. Proposals shipped on or before the above deadline but received at ECA more than seven days after the deadline will be ineligible for further consideration under this competition. Proposals shipped after the established deadlines are ineligible for consideration under this competition. It is each applicant's responsibility to ensure that each package is marked with a legible tracking number and to monitor/confirm delivery to ECA via the Internet. ECA will *not* notify you upon receipt of application. Delivery of proposal packages *may not* be made via local courier service or in person for this competition. Faxed documents will not be accepted at any time. Only proposals submitted as stated above will be considered. Important note: Please make sure to include one extra copy of the completed SF-424 form and place it in an envelope addressed to “ECA/EX/PM”. The original and ten copies of the application should be sent to: U.S. Department of State, SA-44, Bureau of Educational and Cultural Affairs, Ref.: ECA/PE/C/NEAAF-06-60, Program Management, ECA/EX/PM, Room 534, 301 4th Street, SW., Washington, DC 20547. IV.3f.2. *Submitting Electronic Applications:* Applicants have the option of submitting proposals electronically through Grants.gov ( *http://www.grants.gov* ). Complete solicitation packages are available at Grants.gov in the “Find” portion of the system. Please follow the instructions available in the ‘Get Started’ portion of the site ( *http://www.grants.gov/GetStarted* ). Applicants have until midnight (12 a.m.) of the closing date to ensure that their entire applications have been uploaded to the grants.gov site. Applications uploaded to the site after midnight of the application deadline date will be automatically rejected by the grants.gov system, and will be technically ineligible. Applicants will receive a confirmation e-mail from grants.gov upon the successful submission of an application. ECA will not notify you separately upon receipt of electronic applications. IV.3g. *Intergovernmental Review of Applications:* Executive Order 12372 does not apply to this program. For hard-copy submissions, applicants must also submit the “Executive Summary” and “Proposal Narrative” sections of the proposal in text (.txt) format on a PC-formatted disk. The Bureau will provide these files electronically to the appropriate Public Affairs Section(s) at the U.S. embassy and/or consulate for its (their) review. V. Application Review Information V.1. *Review Process:* The Bureau will review all proposals for technical eligibility. Proposals will be deemed ineligible if they do not fully adhere to the guidelines stated herein and in the Solicitation Package. All eligible proposals will be reviewed by the program office, as well as the Public Affairs Section overseas, where appropriate. Eligible proposals will be subject to compliance with Federal and Bureau regulations and guidelines and forwarded to Bureau grant panels for advisory review. Proposals may also be reviewed by the Office of the Legal Adviser or by other Department elements. Final funding decisions are at the discretion of the Department of State's Assistant Secretary for Educational and Cultural Affairs. Final technical authority for assistance awards grants resides with the Bureau's Grants Officer. Review Criteria Technically eligible applications will be competitively reviewed according to the criteria stated below. These criteria are not rank ordered and all carry equal weight in the proposal evaluation: 1. *Quality of the program idea:* Proposals should exhibit originality, substance, precision, and relevance to the Bureau's mission. 2. *Program planning:* Detailed agenda and relevant work plan should demonstrate substantive undertakings and logistical capacity. Each proposal must explain its methodology for assessing workforce development needs and explain how its choice of needs to be addressed in the proposed program is relevant to the focus country. Also, there should be evidence that relevant work of other agencies (e.g., USAID and UN agencies) has been considered. Agenda and plan should adhere to the program overview and guidelines described above. 3. *Ability to achieve program objectives:* Objectives should be reasonable, feasible, and flexible. Proposals should clearly demonstrate how the institution will meet the program's objectives and plan. 4. *Multiplier effect/impact:* Proposed programs should strengthen long-term mutual understanding, including maximum sharing of information and establishment of long-term institutional and individual linkages. 5. *Support of Diversity:* Proposals should demonstrate substantive support of the Bureau's policy on diversity. Achievable and relevant features should be cited in both program administration (selection of participants, program venue and program evaluation) and program content (orientation and wrap-up sessions, program meetings, resource materials and follow-up activities). 6. *Institutional Capacity:* Proposed personnel and institutional resources should be adequate and appropriate to achieve the program or project's goals. 7. *Institution's Record/Ability:* The Bureau will consider the past performance of prior recipients and the demonstrated potential of new applicants. To the extent possible, proposals should demonstrate an institutional record of successful exchange programs, including responsible fiscal management and full compliance with all reporting requirements for past Bureau grants as determined by Bureau Grants Staff. 8. *Post-grant Plan:* Proposals should provide a plan for continued follow-on activity (without Bureau support) ensuring that Bureau-supported programs are not isolated events. 9. *Project Evaluation:* Proposals should include a plan to evaluate the activity's success, both as the activities unfold and at the end of the program. This plan should follow the guidance given above in IV.3d.3. 10. *Cost-effectiveness:* The overhead and administrative components of the proposal, including salaries and honoraria, should be kept as low as possible. All other items should be necessary and appropriate. 11. *Cost-sharing:* Proposals should maximize cost-sharing through other private sector support as well as institutional direct funding contributions. Per III.2 above, proposals that clearly demonstrate significant cost sharing—with 20% of the amount requested from ECA as the preferred minimum—will be judged more competitive. 12. *Value to U.S.-Partner Country Relations:* Proposed projects should receive positive assessments by the U.S. Department of State's geographic area desk and overseas officers of program need, potential impact, and significance in the partner country. VI. Award Administration Information VI.1a. *Award Notices:* Final awards cannot be made until funds have been appropriated by Congress, allocated and committed through internal Bureau procedures. Successful applicants will receive an Assistance Award Document
(AAD)from the Bureau's Grants Office. The AAD and the original grant proposal with subsequent modifications (if applicable) shall be the only binding authorizing document between the recipient and the U.S. Government. The AAD will be signed by an authorized Grants Officer, and mailed to the recipient's responsible officer identified in the application. Unsuccessful applicants will receive notification of the results of the application review from the ECA program office coordinating this competition. VI.2. *Administrative and National Policy Requirements:* Terms and Conditions for the Administration of ECA agreements include the following: Office of Management and Budget Circular A-122, “Cost Principles for Nonprofit Organizations.” Office of Management and Budget Circular A-21, “Cost Principles for Educational Institutions.” OMB Circular A-87, “Cost Principles for State, Local and Indian Governments”. OMB Circular No. A-110 (Revised), Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals, and other Nonprofit Organizations. OMB Circular No. A-102, Uniform Administrative Requirements for Grants-in-Aid to State and Local Governments. OMB Circular No. A-133, Audits of States, Local Government, and Non-profit Organizations. Please reference the following websites for additional information: *http://www.whitehouse.gov/omb/grants. http://exchanges.state.gov/education/grantsdiv/terms.htm#articleI* . VI.3. *Reporting Requirements:* You must provide ECA with a hard copy original plus two copies of the following reports: 1. A final program and financial report no more than 90 days after the expiration of the award; 2. Quarterly program and financial reports. Grantees will be required to provide reports analyzing their evaluation findings to the Bureau in their regular program reports. (Please refer to IV. Application and Submission Instructions (IV.3.d.3) above for Program Monitoring and Evaluation information. All data collected, including survey responses and contact information, must be maintained for a minimum of three years and provided to the Bureau upon request. All reports must be sent to the ECA Grants Officer and ECA Program Officer listed in the final assistance award document. VII. Agency Contacts For questions about this announcement, contact one of the following:
(a)James E. Ogul, Office of Citizen Exchanges, ECA/PE/C/NEA-AF, Room 216 U.S. Department of State, SA-44, 301 4th Street, SW., Washington, DC 20547, Telephone: 202-453-8161, Fax: 202-453-8168, E-mail address: *ogulje@state.gov* , or
(b)Curtis E. Huff, Office of Citizen Exchanges, same address, telephone 202-453-8159, E-mail address: *HuffCE@state.gov.* All correspondence with the Bureau concerning this RFGP should reference the above title and number ECA/PE/C/NEAAF-06-60. Please read the complete announcement before sending inquiries or submitting proposals. Once the RFGP deadline has passed, Bureau staff may not discuss this competition with applicants until the proposal review process has been completed. VIII. Other Information *Notice:* The terms and conditions published in this RFGP are binding and may not be modified by any Bureau representative. Explanatory information provided by the Bureau that contradicts published language will not be binding. Issuance of the RFGP does not constitute an award commitment on the part of the Government. The Bureau reserves the right to reduce, revise, or increase proposal budgets in accordance with the needs of the program and the availability of funds. Awards made will be subject to periodic reporting and evaluation requirements per section VI.3 above. Dated: March 27, 2006. C. Miller Crouch, Principal Deputy Assistant Secretary, Bureau of Educational and Cultural Affairs, Department of State. [FR Doc. E6-4744 Filed 3-30-06; 8:45 am] BILLING CODE 4710-05-P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration Notice Before Waiver With Respect To Land at Lynchburg Regional Airport, Lynchburg, VA AGENCY: Federal Aviation Administration, (FAA), DOT. ACTION: Notice of intent of waiver with respect to land. SUMMARY: The Federal Aviation Administration
(FAA)proposes to rule and invites public comment on the release of approximately thirty
(30)acres of land at the Lynchburg Regional Airport, Lynchburg, Virginia from all Federal obligations, since the land is no longer needed for airport purposes. Reuse of the land for commercial/light industrial purposes represents a compatible land use. There are no impacts to the Airport and the land is not needed for airport development as shown on the Airport Layout Plan. The proceeds from the disposal of land acquired with Federal grants will be used for land acquisition and construction costs associated with the southerly extension to Runway 4-22. The proceeds from the disposal of land acquired without Federal grants will be used for Airport operating and capital costs. DATES: Comments must be received on or before May 1, 2006. ADDRESSES: Comments on this application may be mailed or delivered in triplicate to the FAA at the following address: Terry J. Page, Manager, FAA Washington Airports District Office, 23723 Air Freight Lane, Suite 210, Dulles, VA 20166. In addition, one copy of any comments submitted to the FAA must be mailed or delivered to Mr. Mark F. Courtney, Airport Director Lynchburg Regional Airport, at the following address: Mr. Mark F. Courtney, A.A.E., Airport Director, Lynchburg Regional Airport, 4308 Wards Road, Lynchburg, Virginia 24502. FOR FURTHER INFORMATION CONTACT: Mr. Terry Page, Manager, Washington Airport District Office, 23723 Air Freight Lane, Suite 210, Dulles, VA 20166; telephone
(703)661-1354, fax
(703)661-1270, e-mail *Terry.Page@ffa.gov.* SUPPLEMENTARY INFORMATION: On April 5, 2000, new authorizing legislation became effective. That bill, the Wendell H. Ford Aviation investment and Reform Act for the 21st Century, Public Law 10-181 (Apr. 5, 2000; 114 Stat. 61) (AIR 21) requires that a 30-day public notice must be provided before the Secretary may waive any condition imposed on an interest in surplus property. Issued in Dulles, Virginia on March 17, 2006. Terry J. Page, Manager, Washington Airports District Office, Eastern Region. [FR Doc. 06-3109 Filed 3-30-06; 8:45 am]
Connectionstraces to 13
Traces to 13 documents
U.S. Code
- Registration, responsibilities, and oversight of self-regulatory organizations§ 78s
- National securities exchanges§ 78f
- Public information; agency rules, opinions, orders, records, and proceedings§ 552
- Records maintained on individuals§ 552a
- Cooperative research or demonstration projects§ 1310
- Acceptance of volunteer service§ 3111
- Transferred§ 2753
- Exemption from tax on corporations, certain trusts, etc.§ 501
CFR
register
10 references not yet in our index
- 17 CFR 240.19
- Pub. L. 108-203
- 20 CFR 401
- Pub. L. 87-256
- Pub. L. 109-108
- 22 CFR 62
- Pub. L. 104-319
- Pub. L. 106-113
- Pub. L. 10-181
- 114 Stat. 61
Citation graph
cites case law
Notices
Proposed new system of records and proposed routine uses
Cite17 CFR 240.19
Pub. L.Pub. L. 108-203
Cite20 CFR 401
Cites 23 · showing 12Cited by 0 across 0 sources