Rules and Regulations. Notice

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BILLING CODE 7535-01-M SECURITIES AND EXCHANGE COMMISSION Submission for OMB Review; Comment Request Upon Written Request, Copies Available From: Securities and Exchange Commission, Office of Filings and Information Services, Washington, DC 20549 Extension: Form N-SAR;—SEC File No. 270-292—OMB Control No. 3235-0330. Notice is hereby given that pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 *et seq.* ) the Securities and Exchange Commission (“Commission”) has submitted to the Office of Management and Budget (“OMB”) a request for extension of the previously approved collection of information discussed below.

Form N-SAR—Semi-Annual Report for Registered Investment Companies Form N-SAR (17 CFR 274.101) is the form used by all registered investment companies with the exception of face amount certificate companies, to comply with the periodic filing and disclosure requirements imposed by Section 30 of the Investment Company Act of 1940 (15 U.S.C. 80a-1 *et seq.* ), and of rules 30a1-1 and 30b1-1 under the Act. The information required to be filed with the Commission assures the public availability of the information and permits verification of compliance with Investment Company Act requirements.

Registered unit investment trusts are required to provide this information on an annual report filed with the Commission on Form N-SAR (OMB Control No. 3235-0330) pursuant to rule 30a1-1 under the Investment Company Act (17 CFR 30a1-1), and registered management investment companies must submit the required information on a semi-annual report filed on Form N-SAR pursuant to rule 30b1-1 under the Act (17 CFR 270.30b1-1). 1 1 Face amount certificate companies are required to file periodic reports pursuant to Section 13 or 15(d) of the Exchange Act [15 U.S.C. 78m, 78o(d)].

The Commission estimates that the total number of respondents is 4,130 and the total annual number of responses is 7,430 ((3,300 respondents × 2 responses per year) + (830 respondents × 1 response per year)). The Commission estimates that each registrant filing a report on Form N-SAR would spend, on average, 14.43 hours in preparing and filing the Form and that the total hour burden for all Form N-SAR filings would be 107,203 hours. Estimates of the burden hours are made solely for the purposes of the PRA, and are not derived from a comprehensive or even a representative survey or study of the costs of Commission rules and forms.

The information provided on Form N-SAR is mandatory. The information provided on Form N-SAR will not be kept confidential. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid control number. General comments regarding the above information should be directed to the following persons:

(i)Desk Officer for the Securities and Exchange Commission, Office of Information and Regulatory Affairs, Office of Management and Budget, Room 10102, New Executive Office Building, Washington, DC 20503 or e-mail to: *David_Rostker@omb.eop.gov;* and

(i)Desk officer for the Securities and Exchange Commission, Office of Information and Regulatory Affairs, Office of Management and Budget, Room 10102, New Executive Office Building, Washington, DC 20503, or e-mail to *David_Rostker@omb.eop.gov;* and R. Corey Booth, Director/Chief Information Officer, Securities and Exchange Commission, c/o Shirley Martinson, 6432 General Green Way, Alexandria, Virginia 22312, or send an e-mail to *PRA_Mailbox@sec.gov.* Comments must be submitted to OMB within 30 days of this notice. April 7, 2006. Nancy M. Morris, Secretary. [FR Doc. E6-5670 Filed 4-14-06; 8:45 am] BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION Submissions for OMB Review; Comment Request Upon Written Request, Copies Available From: Securities and Exchange Commission, Office of Filings and Information Services, Washington, DC 20549 Extensions: Form F-9, OMB Control No. 3235-0377, SEC File No. 270-333. Form F-10, OMB Control No. 3235-0380, SEC File No. 270-334. Notice is hereby given that pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 *et seq.* ) the Securities and Exchange Commission (“Commission”) has submitted to the Office of Management and Budget requests for extension of the previously approved collections of information discussed below. Form F-9 (17 CFR 239.39) is a registration statement under the Securities Act of 1933 that is used to register investment grade debt or investment grade preferred securities that are offered for cash or in connection with an exchange offer and are either non-convertible or not convertible for a period of at least one year from the date of issuance and thereafter are only convertible into a security of another class of the issuer. The purpose of the information collection is to permit verification of compliance with securities law requirements and to assure the public availability and dissemination of such information. The principal function of the Commission's forms and rules under the securities laws' disclosure provisions is to make information available to the investors. Form F-9 is a public document and all information provided is mandatory. We estimate that Form F-9 takes approximately 25 hours per response and it is filed by 18 respondents. We further estimate that 25% of the 450 annual burden hours (113 burden hours) are prepared by the company. Form F-10 (17 CFR 239.40) is a registration statement under the Securities Act of 1933 that is used by certain Canadian “substantial issuers” (those issuers with at least 36 calendar months of reporting history with a securities commission in Canada and a market value of common stock of at least $360 million (Canadian) and an aggregate market value of common stock held by non-affiliates of at least $75 million (Canadian)). The purpose of the information collection is to facilitate cross-border offerings by specified Canadian issuers. Form F-10 is a public document and all information provided is mandatory. We estimate that Form F-10 take approximately 25 hours per response and is filed by 75 respondents. We further estimate that 25% of the 1,875 total burden hours (469 burden hours) are prepared by the company. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid control number. Written comments regarding the above information should be directed to the following persons:

(ii)R. Corey Booth, Director/Chief Information Officer, Securities and Exchange Commission, c/o Shirley Martinson, 6432 General Green Way, Alexandria, Va. 22312 or send an e-mail to: *PRA_Mailbox@sec.gov.* Comments must be submitted to the Office of Management and Budget within 30 days of this notice. Dated: April 6, 2006. Nancy M. Morris, Secretary. [FR Doc. E6-5672 Filed 4-14-06; 8:45 am] BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION Submission for OMB Review; Comment Request Upon Written Request, Copies Available From: Securities and Exchange Commission, Office of Filings and Information Services, Washington, DC 20549. Extension: Rule 9b-1 SEC File No. 270-429, OMB Control No. 3235-0480. Notice is hereby given that pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 *et seq.* ) the Securities and Exchange Commission (“Commission”) has submitted to the Office of Management and Budget a request for extension of the previously approved collection of information discussed below. • Options Disclosure Document. Rule 9b-1 under the Securities Exchange Act of 1934 (17 CFR 240.9b-1) sets forth the categories of information required to be disclosed in an options disclosure document (“ODD”) and requires the options markets to file an ODD with the Commission 60 days prior to the date it is distributed to investors. In addition, Rule 9b-1 provides that the ODD must be amended if the information in the document becomes materially inaccurate or incomplete and that amendments must be filed with the Commission 30 days prior to the distribution to customers. Finally, Rule 9b-1 requires a broker-dealer to furnish to each customer an ODD and any amendments, prior to accepting an order to purchase or sell an option on behalf of that customer. There are 6 options markets that must comply with Rule 9b-1. These 6 respondents work together to prepare a single ODD covering options traded on each market, as well as amendments to the ODD. These respondents file no more than one amendment per year, which requires approximately 8 hours per year for each respondent. Thus, the total compliance burden for options markets per year is 48 hours. The approximate cost per hour is $100, resulting in a total cost of compliance for these respondents of $4,800 per year (48 hours @ $100). In addition, approximately 2,000 broker-dealers must comply with Rule 9b-1. Each of these respondents will process an average of three new customers for options each week and, therefore, will have to furnish approximately 156 ODDs per year. The postal mailing or electronic delivery of the ODD takes respondents no more than 30 seconds to complete for an annual compliance burden for each of these respondents of 78 minutes, or 1.3 hours. Thus, the total compliance burden per year is 2,600 hours (2,000 broker-dealers × 1.3 hours). The approximate cost per hour to these respondents is $10 per hour, resulting in a total cost of compliance for these respondents of $26,000 per year (2,600 hours @ $10). The total compliance burden for all respondents under this rule (both options markets and broker-dealers) is 2648 hours per year (48 + 2,600), and total compliance costs of $30,800 ($4,800 + $26,000). An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid control number. Written comments regarding the above information should be directed to the following persons:

(ii)R. Corey Booth, Director/Chief Information Officer, Securities and Exchange Commission, c/o Shirley Martinson, 6432 General Green Way, Alexandria, Virginia 22312 or send an e-mail to: *PRA_Mailbox@sec.gov.* Comments must be submitted to the Office of Management and Budget within 30 days of this notice. Dated: April 6, 2006. Nancy M. Morris, Secretary. [FR Doc. E6-5674 Filed 4-14-06; 8:45 am] BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION Submitted for OMB Review; Comment Request Upon Written Request, Copies Available From: Securities and Exchange Commission, Office of Filings and Information Services, Washington, DC 20549. Extension: Rule 15g-3, SEC File No. 270-346, OMB Control No. 3235-0392. Notice is hereby given that pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 *et seq.* ), the Securities and Exchange Commission (“Commission”) has submitted to the Office of Management and Budget a request for extension of the previously approved collection of information discussed below. Rule 15g-3 (17 CFR 240.15g-3) under the Securities Exchange Act of 1934 requires that brokers and dealers disclose to customers current quotation prices or similar market information in connection with transactions in penny stocks. It is estimated that approximately 240 respondents incur an average burden of 100 hours annually to comply with the rule. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid control number. Written comments regarding the above information should be directed to the following persons:

(ii)R. Corey Booth, Director/Chief Information Officer, Securities and Exchange Commission, c/o Shirley Martinson, 6432 General Green Way, Alexandria, Virginia 22312 or send an e-mail to: *PRA_Mailbox@sec.gov.* Comments must be submitted to the Office of Management and Budget within 30 days of this notice. Dated: April 6, 2006. Nancy M. Morris, Secretary. [FR Doc. E6-5676 Filed 4-14-06; 8:45 am] BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION Submission for OMB Review; Comment Request Upon Written Request, Copies Available From: Securities and Exchange Commission, Office of Filings and Information Services, Washington, DC 20549. Extension: Rule 15g-4, SEC File No. 270-347, OMB Control No. 3235-0393. Notice is hereby given that pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 *et seq.* ), the Securities and Exchange Commission (“Commission” has submitted to the Office of Management and Budget a request for extension of the previously approved collection of information discussed below. Rule 15g-4 (17 CFR 240.15g-4) under the Securities Exchange Act of 1934 requires brokers and dealers effecting transactions in penny stocks for or with customers to disclose the amount of compensation received by the broker-dealer in connection with the transaction. It is estimated that approximately 240 respondents incur an average of 100 hours annually to comply with the rule. Rule 15g-4 contains record retention requirements. Compliance with the rule is mandatory. The required records are available only to the examination staff of the Commission and the self-regulatory organization of which the broker or dealer is a member. An agency may not conduct or sponsor and a person is not required to respond to a collection of information unless it displays a currently valid control number. Written comments regarding the above information should be directed to the following persons:

(ii)R. Corey Booth, Director/Chief Information Officer, Securities and Exchange Commission, c/o Shirley Martinson, 6432 General Green Way, Alexandria, Virginia 22312 or send an e-mail to: *PRA_Mailbox@sec.gov.* Comments must be submitted to the Office of Management and Budget within 30 days of this notice. Dated: April 6, 2006. Nancy M. Morris, Secretary. [FR Doc. E6-5680 Filed 4-14-06; 8:45 am] BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION Submission for OMB Review; Comment Request Upon Written Request, Copies Available From: Securities and Exchange Commission, Office of Filings and Information Services, Washington, DC 20549 Extension: Rule 15g-5, SEC File No. 270-348, OMB Control No. 3235-0394. Notice is hereby given that pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 *et seq.* ), the Securities and Exchange Commission (“Commission”) has submitted to the Office of Management and Budget requests for approval of extension on the following rule. Rule 15g-5 (17 CFR 240.15g-5) under the Securities Exchange Act of 1934 requires brokers and dealers to disclose to customers the amount of compensation to be received by their sales agents in connection with penny stock transactions. It is estimated that approximately 240 respondents incur an average burden of 100 hours annually to comply with the rule. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid control number. Written comments regarding the above information should be directed to the following persons:

(ii)R. Corey Booth, Director/Chief Information Officer, Securities and Exchange Commission, c/o Shirley Martinson, 6432 General Green Way, Alexandria, Virginia 22312, or send an e-mail to: *PRA_Mailbox@sec.gov* . Comments must be submitted to the Office of Management and Budget within 30 days of this notice. Dated: April 6, 2006. Nancy M. Morris, Secretary. [FR Doc. E6-5684 Filed 4-14-06; 8:45 am] BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION Submission for OMB Review; Comment Request Upon Written Request, Copies Available From: Securities and Exchange Commission, Office of Filings and Information Services, Washington, DC 20549 Extension: Rule 19a-1, SEC File No. 270-240 and OMB Control No. 3235-0216. Notice is hereby given that, pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520), the Securities and Exchange Commission (the “Commission”) has submitted to the Office of Management and Budget requests for extension of the previously approved collection of information discussed below. Section 19(a) (15 U.S.C. 80a-19(a)) of the Investment Company Act of 1940 (the “Act”) makes it unlawful for any registered investment company to pay any dividend or similar distribution from any source other than the company's net income, unless the payment is accompanied by a written statement to the company's shareholders which adequately discloses the sources of the payment. Section 19(a) authorizes the Commission to prescribe the form of such statement by rule. Rule 19a-1 (17 CFR 270.19a-1) under the Act, entitled “Written Statement to Accompany Dividend Payments by Management Companies,” sets forth specific requirements for the information that must be included in statements made pursuant to section 19(a) by or on behalf of management companies. 1 The rule requires that the statement indicate what portions of distribution payments are made from net income, net profits and paid-in capital. When any part of the payment is made from net profits, rule 19a-1 also requires that the statement disclose certain other information relating to the appreciation or depreciation of portfolio securities. If an estimated portion is subsequently determined to be significantly inaccurate, a correction must be made on a statement made pursuant to section 19(a) or in the first report to shareholders following the discovery of the inaccuracy. 1 Section 4(3) of the Act [15 U.S.C. 80a-4(3)] defines “management company” as “any investment company other than a face amount certificate company or a unit investment trust.” The purpose of rule 19a-1 is to afford fund shareholders adequate disclosure of the sources from which distribution payments are made. The rule is intended to prevent shareholders from confusing income dividends with distributions made from capital sources. Absent rule 19a-1, shareholders might receive a false impression of fund gains. Based on a review of filings made with the Commission, the staff estimates that approximately 3000 portfolios of registered investment companies that are management companies may be subject to rule 19a-1 each year, and that each portfolio on average mails two statements per year to meet the requirements of the rule. 2 The staff further estimates that the time needed to make the determinations required by the rule and to prepare the statement required under the rule is approximately 1.5 hours per statement. The total annual burden for all portfolios therefore is estimated to be approximately 9,000 burden hours. 2 A few portfolios make monthly distributions from sources other than net income, so the rule requires them to send out a statement 12 times a year. Other portfolios never make such distributions. The staff estimates that approximately one-third of the total annual burden (3,000 hours) would be incurred by a senior administrative officer with an average hourly wage rate of approximately $158 per hour, and approximately two-thirds of the annual burden (6,000 hours) would be incurred by senior clerical staff with an average hourly wage rate of $25 per hour. 3 The staff therefore estimates that the aggregate annual cost of complying with the paperwork requirements of the rule is approximately $624,000 ((3,000 hours × $158) + (6,000 hours × $25)). 3 All hourly rates in this Supporting Statement are derived from the average annual salaries reported for employees outside of New York City in Securities Industry Association, Management and Professional Earnings in the Securities Industry

(2003)and Securities Industry Association, Office Salaries in the Securities Industry (2003). The estimate of average burden hours is made solely for the purposes of the Paperwork Reduction Act, and is not derived from a comprehensive or even a representative survey or study of the costs of Commission rules. Compliance with the collection of information required by rule 19a-1 is mandatory for management companies that make written statements to shareholders pursuant to section 19(a) of the Act. Responses will not be kept confidential. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid control number. General comments regarding the above information should be directed to the following persons:

(ii)R. Corey Booth, Director/Chief Information Officer, Securities and Exchange Commission, c/o Shirley Martinson, 6432 General Green Way, Alexandria, Virginia 22312, or send an e-mail to: *PRA_Mailbox@sec.gov* . Comments must be submitted to the Office of Management and Budget within 30 days of this notice. Dated: April 6, 2006. Nancy M. Morris, Secretary. [FR Doc. E6-5689 Filed 4-14-06; 8:45 am] BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-53628; File No. 4-517] Program for Allocation of Regulatory Responsibilities Pursuant to Rule 17d-2; Notice of Filing of the Plan for Allocation of Regulatory Responsibilities Between The NASDAQ Stock Market LLC and the National Association of Securities Dealers, Inc. April 10, 2006. Pursuant to Section 17(d) of the Securities Exchange of 1934 (“Act”) 1 and Rule 17d-2 thereunder, 2 notice is hereby given that on April 6, 2006, The NASDAQ Stock Market LLC (“Nasdaq” or “Exchange”) and the National Association of Securities Dealers, Inc. (“NASD” or “Association”) filed with the Securities and Exchange Commission (“SEC” or “Commission”) a plan for the allocation of regulatory responsibilities. 1 15 U.S.C. 78q(d). 2 17 CFR 240.17d-2. I. Introduction Section 19(g)(1) of the Act 3 , among other things, requires every national securities exchange and registered securities association (“SRO”) to examine for, and enforce compliance by, its members and persons associated with its members with the Act, the rules and regulations thereunder, and the SRO's own rules, unless the SRO is relieved of this responsibility pursuant to Section 17(d) or 19(g)(2) of the Act. 4 Without this relief, the statutory obligation of each individual SRO could result in a pattern of multiple examinations of broker-dealers that maintain memberships in more than one SRO (“common members”). This regulatory duplication would add unnecessary expenses for common members and their SROs. 3 15 U.S.C. 78s(g)(1). 4 15 U.S.C. 78q(d) and 15 U.S.C. 78s(g)(2). Section 17(d)(1) of the Act was intended, in part, to eliminate unnecessary multiple examinations and regulatory duplication. 5 With respect to a common member, Section 17(d)(1) authorizes the Commission, by rule or order, to relieve an SRO of the responsibility to receive regulatory reports, to examine for and enforce compliance with applicable statutes, rules and regulations, or to perform other specified regulatory functions. 5 Securities Acts Amendments of 1975, Report of the Senate Committee on Banking, Housing, and Urban Affairs to Accompany S. 249, S. Rep. No. 94-75, 94th Cong., 1st Session. 32 (1975). To implement Section 17(d)(1), the Commission adopted two rules: Rule 17d-1 and Rule 17d-2 under the Act. 6 Rule 17d-1, adopted on April 20, 1976, 7 authorizes the Commission to name a single SRO as the designated examining authority (“DEA”) to examine common members for compliance with financial responsibility requirements imposed by the Act, or by Commission or SRO rules. When an SRO has been named as a common member's DEA, all other SROs to which the common member belongs are relieved of the responsibility to examine the firm for compliance with applicable financial responsibility rules. 6 17 CFR 240.17d-1 and 17 CFR 240.17d-2. 7 Securities Exchange Act Release No. 12352, 41 FR 18809 (May 3, 1976). On its face, Rule 17d-1 deals only with an SRO's obligation to enforce broker-dealers' compliance with the financial responsibility requirements. Rule 17d-1 does not relieve an SRO from its obligation to examine a common member for compliance with its own rules and provisions of the federal securities laws governing matters other than financial responsibility, including sales practices, and trading activities and practices. To address regulatory duplication in these other areas, on October 28, 1976, the Commission adopted Rule 17d-2 under the Act. 8 This rule permits SROs to propose joint plans allocating regulatory responsibilities with respect to common members. Under paragraph

(c)of Rule 17d-2, the Commission may declare such a plan effective if, after providing for notice and comment, it determines that the plan is necessary or appropriate in the public interest and for the protection of investors, to foster cooperation and coordination among the SROs, to remove impediments to and foster the development of a national market system and a national clearance and settlement system, and in conformity with the factors set forth in Section 17(d) of the Act. Commission approval of a plan filed pursuant to Rule 17d-2 relieves an SRO of those regulatory responsibilities allocated by the plan to another SRO. 8 Securities Exchange Act Release No. 12935, 41 FR 49093 (November 8, 1976). II. The Plan Nasdaq and NASD filed with the Commission a plan for allocating regulatory responsibilities pursuant to Rule 17d-2. The proposed plan is intended to reduce regulatory duplication for firms that are common members of Nasdaq and NASD. This proposed plan would transfer to the NASD certain regulatory responsibilities for each common member. Included in the plan is an attachment (“The Nasdaq Stock Market LLC Rules Certification for 17d-2 Agreement with NASD,” referred to herein as the “Nasdaq Certification”) that delineates the Nasdaq rules that would be subject to the plan. The Nasdaq Certification lists every Nasdaq rule that, under the plan, the NASD would bear responsibility for overseeing and enforcing with respect to common members. The text of the proposed 17d-2 plan is as follows: Agreement Between the National Association of Securities Dealers, Inc. and The Nasdaq Stock Market LLC Pursuant To Section 17(D) And Rule 17d-2 This agreement (Agreement) pursuant to Section 17(d) of the Securities Exchange Act of 1934

(Act)and Rule 17d-2 thereunder is by and between the National Association of Securities Dealers, Inc. (NASD), a Delaware corporation registered as a national securities association subject to regulation by the Securities and Exchange Commission

(SEC)under the Act, whose principal offices are located at 1735 K Street, N.W., Washington, D.C. 20006, and The NASDAQ Stock Market LLC (Nasdaq), a Delaware limited liability company registered as a national securities exchange subject to regulation by the SEC under the Act, whose principal offices are located at 1 Liberty Plaza, New York, NY (NASD and Nasdaq hereafter may be referred to together as the parties or individually as a party). In consideration of the mutual covenants contained hereafter, and in consideration of other valuable consideration, NASD and Nasdaq hereby agree as follows: 1. *Term.* This Agreement shall be effective on the later of either:

(i)the date that Nasdaq commences operations as a national securities exchange; or

(ii)the date the SEC approves this Agreement under Section 17(d) (Effective Date). 2. *Entities.* Nasdaq is a registered national securities exchange, as defined in Section 6 of the Act, and a self-regulatory organization, as defined in Section 3(a)(26) of the Act (SRO). NASD is a registered securities association, as defined in Section 15A of the Act and an SRO. Both parties are responsible for fulfilling certain regulatory obligations and performing certain regulatory functions under the Act. 3. *Members.* The parties have brokers or dealers as their members, and some of the brokers or dealers are members of both such parties (hereinafter, members of both such parties and persons associated with such members are referred to collectively as Common Members). Each party has regulatory obligations under the Act and the rules of the party for Common Members. A broker or dealer shall be considered a member of one of the parties only upon the approval of the membership application of that broker or dealer. A broker or dealer with a pending membership application shall not be considered a Common Member. 4. *Structure.* Under Rule 17d-2, the parties may agree, in a plan or agreement, to provide for coordinated, non-duplicative regulation and enforcement, and to serve other purposes of the Act:

(1)to allocate certain regulatory responsibilities that both parties have to one of the parties;

(2)to relieve a party of its regulatory responsibility and obligations for a certain function under the Act if the other party agrees to exercise such responsibility and undertake such obligation for the specified function on behalf of the other party; and

(3)to provide for the allocation of expenses reasonably incurred by the party agreeing to exercise the responsibility and undertake the obligation for the specified function in the plan or agreement. Pursuant hereto, Nasdaq is responsible for identifying the rules of Nasdaq that are identical or substantially similar to NASD rules. After review and confirmation by NASD, Nasdaq shall in a certification, as attached hereto and made a part of this Agreement (Nasdaq Certification), certify the rules of Nasdaq that are identical or substantially similar to NASD rules (Common Rules) and, therefore, are the subject of this Agreement. Each year following the commencement of operation of this Agreement, or more frequently if required by changes in either the rules of Nasdaq or NASD, Nasdaq shall submit an updated list of Common Rules to NASD for review which shall add Nasdaq rules not included in the current Nasdaq Certification that are identical or substantially similar to NASD rules; delete Nasdaq rules included in the Nasdaq Certification that are no longer identical or substantially similar to NASD rules; and confirm that the remaining rules on the Nasdaq Certification continue to be Nasdaq rules that are identical or substantially similar to NASD rules. Within 30 days of receipt of such updated list, NASD will confirm in writing whether the rules listed in any updated list are Common Rules as defined in this Agreement. NASD shall not assume regulatory responsibility for, and Nasdaq will retain full responsibility for (unless allocated pursuant to Rule 17d-2 otherwise than under this Agreement), surveillance and enforcement with respect to trading activities or practices involving solely Nasdaq's own marketplace. Also subject to this Agreement are SEC rules applicable to Common Members. NASD shall assume regulatory responsibility for such SEC rules with respect to Common members to the same extent that the NASD assumes regulatory responsibility with respect to NASD members. 5. *Services.* NASD agrees to provide the following services (Services) as related to Common Members:

(a)Membership Activities.

(1)NASD will receive and process in the Central Registration Depository

(CRD)applications, reports, information, filings, fingerprint cards, and notices generally relating to:

(a)an associated person status, and

(b)registration as a principal of any type, a representative of any type, or any other type of employee required to register or required to pass a qualification examination.

(2)NASD will receive and process in the CRD documentation of notice of the passage of the appropriate qualification examination for such principal, registered representative, or other employee required to qualify by examination and, subsequently, forward such information to Nasdaq.

(3)Upon request, NASD will advise Nasdaq of any changes in the status of members (including officer and partner changes), and registered personnel as reflected in CRD.

(4)NASD shall collect and forward monthly to Nasdaq, any applicable fees for the account of Nasdaq. NASD agrees to provide Nasdaq with an accounting of such fees in January of each year. Nasdaq will reimburse NASD for reasonable expenses incurred for performing these accounting functions.

(5)Common Members will be required to send to NASD all letters, termination notices or other material relating to their associated persons.

(6)When, as a result of processing letters, termination notices, or other material relating to their associated persons, NASD becomes aware of a statutory disqualification with respect to a Common Member, NASD shall determine, pursuant to Section 15A(g) or Section 6(c) of the Act, the acceptability or continued acceptability of the person to whom such statutory disqualification applies, but will not make a determination regarding Nasdaq membership or participation, or association of a person with Nasdaq member. NASD shall advise Nasdaq in writing of its actions in this regard. Nasdaq shall, within 30 days of receiving such information from NASD, determine whether to permit a statutorily disqualified Common Member to become or to remain a Nasdaq member or a participant, or a person associated with a member. Nasdaq will advise NASD of its decision. Nasdaq will reimburse NASD for reasonable expenses incurred for notifying Nasdaq of the NASD's decision regarding a statutory disqualification under Section 15A(g) or Section 6(c) of the Act.

(b)Branch Office Activities. NASD will receive and process notices, filings, or registrations received regarding a Common Member's branch offices, including notices, filings, or registrations to designate offices of supervisory jurisdiction, and agrees to provide notice to Nasdaq of such filings. Nasdaq will reimburse NASD for reasonable expenses incurred for providing Nasdaq notification.

(c)Examinations. For the portion of those routine, cycle, cause, and special examinations that NASD will perform for Common Members under this Agreement, NASD will, upon request, provide copies of the relevant portion of such examination reports to Nasdaq. Nasdaq will reimburse NASD for reasonable expenses incurred for providing examination reports to Nasdaq. This undertaking is limited to examining Common Members for compliance with:

(1)The federal securities laws and the rules and regulations thereunder, except that it does not include examining any Common Member for compliance with financial responsibility rules on behalf of Nasdaq (unless the SEC has designated NASD as the DEA for the Common Member under Rule 17d-1);

(2)Other applicable federal laws, rules and regulations; and

(3)The rules of Nasdaq that are identical or substantially similar to NASD rules because they have been certified by Nasdaq as such.

(d)Violations.

(1)If NASD discovers an apparent violation of a federal statute or regulation or Nasdaq rule listed above in paragraph 5(c) for which NASD agrees to examine a Common Member for compliance, NASD shall investigate the apparent violation, notify Nasdaq of the results of the investigation and provide a copy of any written report, determine if additional regulatory action is required, take any disciplinary or other regulatory action required, and provide notice to Nasdaq at the termination of the matter by enforcement or other action. If a disciplinary proceeding is conducted by NASD, NASD will apply the NASD Code of Procedure (the Rule 9000 Series) and other applicable NASD procedural rules. Nasdaq will reimburse NASD for reasonable expenses incurred for providing any information, notices, or reports contemplated under this provision.

(2)If NASD discovers an apparent violation of a Nasdaq Rule not within the examination responsibility of NASD as described above in paragraph 5(c), NASD shall notify Nasdaq and refer the matter to Nasdaq for further examination, investigation, or enforcement or regulatory action, as determined by Nasdaq.

(e)Enforcement. For Common Members, NASD will enforce compliance with:

(2)Other applicable federal laws, rules and regulations; and

(3)The rules of Nasdaq that are identical or substantially similar to NASD Rules because they have been certified by Nasdaq as such. 6. *Information Sharing.* The parties agree to provide each other with the following information:

(a)General. A party shall promptly furnish to the other party any information that the party determines indicates possible financial, operational, or other problems of any Common Member, including, but not limited to, early warning indications of potential problems resulting from unusual accumulations or concentrations of securities positions or market fluctuations.

(b)Reports. Upon reasonable request, a party will make available promptly to a requesting party any financial, operational, or related report filed with the party by a Common Member, files, information on customer complaints, termination notices, copies of an examination report, investigative material, or other documents involving compliance with the federal securities laws and regulations and the rules of the parties by the Common Member, or other documents in the possession of the party receiving the request relating to the Common Member as necessary to assist the other party in fulfilling the self-regulatory responsibilities, obligations, and functions allocated under this Agreement. The parties agree that a party will make available promptly to the requesting party witnesses as necessary to assist the other party in fulfilling the self-regulatory responsibilities allocated under this Agreement. The non-requesting party will pay all reasonable travel and other expenses incurred by its employees to the extent that the requesting party requires such employees to serve as a witness, and provide information or other assistance pursuant to this Agreement.

(c)Customer Complaints. If a party receives a copy of a customer complaint relating to a Common Member's activity or conduct that is not the regulatory responsibility of the receiving party, the receiving party will forward to the other party copies of such customer complaints.

(d)Upon reasonable request of a party, the other party shall use reasonable efforts to furnish the requesting party information on informal or formal disciplinary actions involving a Common Member. The requesting party will reimburse the other party for reasonable expenses incurred for providing such information.

(e)Information-Miscellaneous. Where not otherwise provided, in consideration for NASD assuming any of the above referenced regulatory responsibilities and obligations of Nasdaq with respect to Common Members and thereafter providing information to Nasdaq in any form that is necessary or desirable to Nasdaq in order for Nasdaq to fulfill its regulatory obligations under the Act or in order for Nasdaq to remain informed of the actions of its members and associated persons, Nasdaq will reimburse NASD for all reasonable expenses incurred for providing such information. 7. *Special or Cause Examinations* . Nothing in this Agreement shall restrict or in any way encumber the right of a party to conduct special or cause examinations of Common Members as either party, in its sole discretion, shall deem appropriate or necessary. 8. *Fees* . NASD will provide Nasdaq with one hundred eighty

(180)days advance written notice in the event that NASD decides to charge Nasdaq for any expenses incurred or services performed under this Agreement not otherwise set forth above. Nasdaq will have thirty

(30)days from the date of such notification to inform NASD that Nasdaq will seek to terminate the Agreement pursuant to Section 17 thereof or enter into an agreement pursuant to applicable rules of the SEC with another SRO with respect to the performance of such responsibilities. 9. *Indemnification* . Neither party, including respective directors, governors, officers, employees and agents, will be liable to the other party and its directors, governors, officers, employees and agents for any liability, loss or damage resulting from any delays, inaccuracies, errors or omissions with respect to its performing or failing to perform regulatory responsibilities, obligations, or functions, except as otherwise provided for under the Act or in instances of gross negligence, willful misconduct or reckless disregard, or breach of confidentiality. Both parties understand and agree with each other that the regulatory responsibilities are being performed on a good faith and best effort basis and no warranties, express or implied, are made by either party to the other party with respect to any of the responsibilities to be performed by either of these parties hereunder. 10. *Arbitration* . Any claim, dispute, controversy or other matter in question with regard to the Agreement that cannot be resolved by negotiation between the parties shall be submitted to arbitration in accordance with the rules and regulations of the American Arbitration Association; provided, however, that

(a)submission of any such claim, dispute, controversy or other matter in question to the American Arbitration Association shall not be required if the parties agree upon another arbitration forum,

(b)the foregoing shall not preclude either party from pursuing all available administrative, judicial or other remedies for infringement of a registered patent, trademark, service mark or copyright,

(c)the parties shall not submit claims for punitive damages, and do hereby waive any right to the same, and

(d)the arbitrators shall not be authorized to award punitive damages. 11. *SEC Approval.*

(a)The parties agree to file promptly this Agreement with the SEC for its review and approval.

(b)If approved by the SEC, Nasdaq will notify Common Members of the general terms of the Agreement and its impact on members. The notice will be sent on behalf of both parties and, prior to being sent, NASD will review and approve the notice. 13. *Definitions.* Unless otherwise defined in this Agreement, or unless the context otherwise requires, the terms used in this Agreement shall have the same meaning as they have under the Act and the rules and regulations thereunder. 14. *Subsequent Parties; Limited Relationship.* This Agreement shall inure to the benefit of and shall be binding upon the parties hereto and their respective legal representatives, successors, and assigns. Nothing in this Agreement, expressed or implied, is intended or shall

(a)confer on any person other than the parties hereto, or their respective legal representatives, successors, and assigns, any rights, remedies, obligations or liabilities under or by reason of this Agreement,

(b)constitute the parties hereto partners or participants in a joint venture, or

(c)appoint one party the agent of the other. 15. *Assignment.* Neither party may assign the Agreement without the prior written consent of the other party, which consent shall not be unreasonably withheld, conditioned or delayed; provided, however, that either party may assign the Agreement to a corporation controlling, controlled by or under common control with the assigning party without the prior written consent of the other party. 16. *Severability.* Any term or provision of this Agreement that is invalid or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms and provisions of this Agreement or affecting the validity or enforceability of any of the terms or provisions of this Agreement in any other jurisdiction. 17. *Termination.*

(a)Termination for Cause. Either party may terminate the Agreement due to breach by the other party. The party aggrieved by the breach shall give written notice to the other party that the Agreement shall be terminated not earlier than sixty

(60)calendar days from receipt of the notice, and such notice shall state with specificity the grounds for termination. If the breach is curable, the party in breach will have the right to cure such breach prior to the date stated for termination, and, should the breach be cured and written notice of such cure served on the aggrieved party prior to the date stated for termination, such notice shall vacate the notice to terminate.

(b)Termination for Convenience. Either party may terminate the Agreement for any other reason by giving written notice to the other party that the Agreement will terminate not less than one hundred eighty (180 days) from receipt of the notice. The notice will specify the basis for termination. Nasdaq will pay NASD the amount due for expenses incurred for generating reports and notices as of the effective date of termination. 18. *General.* The parties agree to perform all acts and execute all supplementary instruments or documents that may be reasonably necessary or desirable to carry out the provisions of this Agreement. 19. *Liaison and Notices.* All questions regarding the implementation of this Agreement shall be directed to the persons identified in subsections

(a)and (b), as applicable, below. All notices and other communications required or permitted to be given under this Agreement shall be in writing and shall be deemed to have been duly given upon

(i)actual receipt by the notified party or

(ii)constructive receipt (as of the date marked on the return receipt) if sent by certified or registered mail, return receipt requested, to the following addresses:

(a)If to NASD: National Association of Securities Dealers, Inc. 1735 K Street, NW., Washington, DC 20006. Attn: NASD Regulation Office of General Counsel. With, if a notice of breach or default, a required copy to: National Association of Securities Dealers, Inc., 1735 K Street, NW., Washington, DC 20006, Attn: Office of General Counsel—Contracts Group.

(b)If to Nasdaq: The NASDAQ Stock Market LLC, 9600 Blackwell Avenue, Rockville, MD 20850, Attn: The Nasdaq Stock Market LLC, Office of General Counsel. With, if a notice of breach or default, a required copy to: The Nasdaq Stock Market LLC, Office of General Counsel. 20. *Regulatory Responsibility.* Pursuant to Section 17(d)(1)(A) of the Act, and Rule 17d-2 thereunder, NASD and Nasdaq jointly request the SEC, upon its approval of this Agreement, to relieve Nasdaq of any and all responsibilities with respect to the matters allocated to NASD pursuant to this Agreement for purposes of Sections 17(d) and 19(g) of the Act; provided, however, that Nasdaq will continue to have exclusive responsibility for ensuring the continued validity of the Nasdaq certifications made under Section 4 herein. 21. *Governing Law.* This Agreement shall be deemed to have been made in the State of New York, and shall be construed and enforced in accordance with the law of the State of New York, without reference to principles of conflicts of laws thereof. Each of the parties hereby consents to submit to the jurisdiction of the courts by or for the State of New York in connection with any action or proceeding relating to this Agreement. 22. *Survival of Provisions.* Provisions intended by their terms or context to survive and continue notwithstanding delivery of the Services by NASD, the payment of the price by Nasdaq, and any expiration of this Agreement shall survive and continue, including but not limited to, the items referred to in Sections 9 and 10. The Nasdaq Stock Market LLC Rules Certification for 17D-2 Agreement With NASD *The Nasdaq Stock Market LLC hereby certifies that the requirements contained in the Nasdaq Stock Market rules listed below are identical to, or substantially similar to, NASD rules.* 0100. GENERAL PROVISIONS 0110. Adoptions and Application of Rules 0113. Interpretation 0115. Applicability 0120. Definitions 0121. Definitions in By-Laws 1000. MEMBERSHIP, REGISTRATION AND QUALIFICATION REQUIREMENTS 1002. Qualifications of Nasdaq Members and Associated Persons IM-1002-1. Filing of Misleading Information as to Membership or Registration IM-1002-2. Status of Sole Proprietors and Registered Representatives Serving in the Armed Forces IM-1002-3. Failure to Register Personnel IM-1002-4. Branch Offices and Offices of Supervisory Jurisdiction 1010. Membership Proceedings Definitions 1011. Definitions 1012. General Provisions 1013. New Member Application and Interview 1014. Department Decision 1017. Application for Approval of Change in Ownership, Control, or Business Operations 1020. Registration of Principals 1021. Registration Requirements 1022. Categories of Principal Registration IM-1022-2. Limited Principal—General Securities Sales Supervisor 1030. Registration of Representatives 1031. Registration Requirements 1032. Categories of Representative Registration 1040. Registration of Assistant Representatives—Order Processing 1041. Registration Requirements 1042. Restrictions 1050. Research Analysts 1060. Persons Exempt from Registration 1070. Qualification Examinations and Waiver of Requirements 1080. Confidentiality of Examinations 1090. Foreign Members 1100. Foreign Associates 1120. Continuing Education Requirements 1130. Reliance on Current Membership List 1140. Electronic Filing Rules 1150. Executive Representative 2000. BUSINESS CONDUCT 2100. GENERAL STANDARDS 2110. Standards of Commercial Honor and Principles of Trade IM-2110-2. Trading Ahead of Customer Limit Orders IM-2110-3. Front Running Policy IM-2110-4. Trading Ahead of Research Reports IM-2110-5. Anti-Intimidation/Coordination IM-2110-6. Confirmation of Callable Common Stock IM-2110-7. Interfering With the Transfer of Customer Accounts in the Context of Employment Disputes 2111. Trading Ahead of Customer Market Orders 2120. Use of Manipulative, Deceptive or Other Fraudulent Devices 2200. COMMUNICATIONS WITH CUSTOMERS AND THE PUBLIC 2210. Communications with the Public IM-2210-1. Guidelines to Ensure That Communications With the Public Are Not Misleading IM-2210-4. Limitations on Use of Nasdaq's Name 2211. Institutional Sales Material and Correspondence 2212. Telemarketing 2240. Disclosure of Control Relationship with Issuer 2250. Disclosure of Participation or Interest in Primary or Secondary Distribution 2260. Forwarding of Proxy and Other Materials IM-2260. Suggested Rates of Reimbursement 2270. Disclosure of Financial Condition to Customers 2300. TRANSACTIONS WITH CUSTOMERS 2310. Recommendations to Customers (Suitability) IM-2310-2. Fair Dealing with Customers IM-2310-3. Suitability Obligations to Institutional Customers 2320. Best Execution and Interpositioning 2330. Customers' Securities or Funds IM-2330. Segregation of Customers' Securities 2340. Customer Account Statements 2341. Margin Disclosure Statement 2360. Approval Procedures for Day Trading Accounts 2361. Day-Trading Risk Disclosure Statement 2370. Borrowing From or Lending to Customers 2400. COMMISSIONS, MARK-UPS AND CHARGES 2430. Charges for Services Performed 2460. Payments for Market Making 2500. SPECIAL ACCOUNTS 2510. Discretionary Accounts 2520. Margin Requirements 2800. SPECIAL PRODUCTS 2810. Direct Participation Programs 2830. Investment Company Securities 2840. Trading in Index Warrants, Currency Index Warrants, and Currency Warrants 2841. General 2842. Definitions 2850. Position Limits 2851. Exercise Limits 2852. Reporting Requirements 2853. Liquidation of Index Warrant Positions 2854. Trading Halts or Suspensions 2900. RESPONSIBILITIES TO OTHER BROKERS OR DEALERS 2910. Disclosure of Financial Condition to Other Members 3000. RESPONSIBILITIES RELATING TO ASSOCIATED PERSONS, EMPLOYEES, AND OTHERS' EMPLOYEES 3010. Supervision IM-3010. Guidance on Heightened Supervision Requirements 3011. Anti-Money Laundering Compliance Program 3012. Supervisory Control System 3013. Annual Certification of Compliance and Supervisory Processes IM-3013. Annual Compliance and Supervision Certification 3020. Fidelity Bonds 3030. Outside Business Activities of an Associated Person 3040. Private Securities Transactions of an Associated Person 3050. Transactions for or by Associated Persons 3060. Influencing or Rewarding Employees of Others 3070. Reporting Requirements 3080. Disclosure to Associated Persons When Signing Form U-4 3090. Transactions Involving Nasdaq Employees 3100. BOOKS AND RECORDS, AND FINANCIAL CONDITION 3110. Books and Records IM-3110. Customer Account Information 3120. Use of Information Obtained in Fiduciary Capacity 3121. Custodian of the Record 3130. Regulation of Activities of Members Experiencing Financial and/or Operational Difficulties IM-3130. Restrictions on Member's Activity 3140. Approval of Change in Exempt Status Under SEC Rule 15c3-3 3150. Reporting Requirements for Clearing Firms IM-3150. Exemptive Relief 3200. SETTLEMENTS 3220. Adjustment of Open Orders 3230. Clearing Agreements 3300. TRADING 3310. Publication of Transactions and Quotations IM-3310. Manipulative and Deceptive Quotations 3320. Offers at Stated Prices 3330. Payment Designed to Influence Market Prices, Other than Paid Advertising 3370. Prompt Receipt and Delivery of Securities 3500. EMERGENCY PREPAREDNESS 3510. Business Continuity Plans 3520. Emergency Contact Information 6000. OTHER SYSTEMS AND PROGRAMS 6400. TRANSACTIONS IN SECURITIES TRADED PURSUANT TO UNLISTED TRADING PRIVILEGES 6430. Suspension of Trading 6440. Trading Practices 6500. PORTAL® 6530. Requirements Applicable to Nasdaq Members 6531. Limitations on Transactions in PORTAL Securities 6532. Reporting Debt and Equity Transactions in PORTAL Securities 6950. ORDER AUDIT TRAIL SYSTEM 6951. Definitions 6952. Applicability 6953. Synchronization of Member Business Clocks 6954. Recording of Order Information 6955. Order Data Transmission Requirements 6956. Violation of Order Audit Trail System Rules 6957. Effective Date 8000. INVESTIGATIONS AND SANCTIONS 8100. GENERAL PROVISIONS 8110. Availability of Manual to Customers 8120. Definitions 10000. CODE OF ARBITRATION PROCEDURE 10100. Jurisdiction IM-10100. Failure to Act Under Provisions of Code of Arbitration Procedure 10101. Matters Eligible for Submission 10102. Non-Waiver of Nasdaq Objects and Purposes 11000. UNIFORM PRACTICE CODE 11100. Scope of Uniform Practice Code 11110. Nasdaq Regulation IM-11110. Refusal to Abide by Rulings of Nasdaq Regulation 11120. Definitions 11130. When, As and If Issued/Distributed Contracts IM-11130. Standard Form of “When, As and If Issued” or “When, As and If Distributed” Contract 11140. Transactions in Securities “Ex-Dividend,” “Ex-Rights” or “Ex-Warrants” 11150. Transactions “Ex-Interest” in Bonds Which Are Dealt in “Flat” 11160. “Ex” Liquidating Payments 11170. Transactions in “Part-Redeemed” Bonds 11190. Reconfirmation and Pricing Service Participants 11200. COMPARISONS OR CONFIRMATIONS AND “DON'T KNOW NOTICES” 11210. Sent By Each Party IM-11210. Uniform Comparison Form 11220. Description of Securities 11300. DELIVERY OF SECURITIES 11310. Book-Entry Settlement 11320. Dates of Delivery 11330. Payment 11340. Stamp Taxes 11350. Part Delivery 11360. Units of Delivery IM-11360. Uniform Delivery Ticket Form 11361. Units of Delivery—Stocks 11362. Units of Delivery—Bonds 11363. Units of Delivery—Unit Investment Trust Securities 11364. Units of Delivery—Certificates of Deposit for Bonds IM-11364. Trading Securities As “Units” or Bonds “With Stock” 11400. DELIVERY OF SECURITIES WITH DRAFT ATTACHED 11410. Acceptance of Draft 11500. DELIVERY OF SECURITIES WITH RESTRICTIONS 11510. Delivery of Temporary Certificates 11520. Delivery of Mutilated Securities 11530. Delivery of Securities Called for Redemption or Which Are Deemed Worthless 11540. Delivery Under Government Regulations 11550. Assignments and Powers of Substitution; Delivery of Registered Securities IM-11550. Uniform Transfer Instructions Form 11560. Certificate of Company Whose Transfer Books Are Closed IM-11560. Sample Ownership Transfer Indemnification Stamp 11570. Certificates in Various Names 11571. Certificate in Name of Corporation IM-11571. Sample Certificate and Authorizing Resolution/Certificate of Incumbency 11572. Certificate in Name of Firm 11573. Certificate in Name of Dissolved Firm Succeeded by New Firm 11574. Certificate in Name of Deceased Person, Trustee, etc. IM-11574. Sample Limited Partnership Change of Trustee Form 11600. DELIVERY OF BONDS AND OTHER EVIDENCES OF INDEBTEDNESS 11610. Liability for Expenses 11620. Computation of Interest 11630. Due-Bills and Due-Bill Checks IM-11630. Sample Due-Bill Forms 11640. Claims for Dividends, Rights, Interest, etc. 11650. Transfer Fees 11700. RECLAMATIONS AND REJECTIONS 11710. General Provisions IM-11710. Uniform Reclamation Form 11720. Irregular Delivery—Transfer Refused—Lost or Stolen Securities IM-11720. Obligations of Members Who Discover Securities in Their Possession to Which They Are Not Entitled 11730. Called Securities 11740. Marking to the Market 800. CLOSE-OUT PROCEDURES 11810. Buying-In IM-11810. Sample Buy-In Forms 11820. Selling-Out 11840. Rights and Warrants IM-11840. Sample Letter of Indemnity 11860. Acceptance and Settlement of COD Orders 11870. Customer Account Transfer Contracts IM-11870. Sample Transfer Instruction Forms 11880. Settlement of Syndicate Accounts III. Date of Effectiveness of the Proposed Plan and Timing for Commission Action Pursuant to Section 17(d)(1) of the Act 9 and Rule 17d-2 thereunder, 10 after May 8, 2006, the Commission may, by written notice, declare the plan submitted by Nasdaq and NASD, File No. 4-517, effective if the Commission finds that the plan is necessary or appropriate in the public interest and for the protection of investors, to foster cooperation and coordination among self-regulatory organizations, or to remove impediments to and foster the development of the national market system and a national system for the clearance and settlement of securities transactions and in conformity with the factors set forth in Section 17(d) of the Act. 9 15 U.S.C. 78q(d)(1). 10 17 CFR 240.17d-2. IV. Solicitation of Comments In order to assist the Commission in determining whether to approve this plan and to relieve Nasdaq of those responsibilities designated to NASD, interested persons are invited to submit written data, views, and arguments concerning the foregoing. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission's Internet comment form ( *http://www.sec.gov/rules/other.shtml* ), or • Send an e-mail to *rule-comments@sec.gov* . Please include File Number 4-517 on the subject line. Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, Station Place, 100 F Street, NE., Washington, DC 20549-1090. All submissions should refer to File Number 4-517. 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/other.shtml* ). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed plan that are filed with the Commission, and all written communications relating to the proposed plan 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 plan 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 4-517 and should be submitted on or before May 8, 2006. For the Commission, by the Division of Market Regulation, pursuant to delegated authority. 11 11 17 CFR 200.30-3(a)(34). Nancy M. Morris, Secretary. [FR Doc. E6-5693 Filed 4-14-06; 8:45 am] BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-53623; File No. 4-514] Self-Regulatory Organizations; Order Approving Minor Rule Violation Plan for The NASDAQ Stock Market LLC April 10, 2006. On February 22, 2006, The NASDAQ Stock Market LLC (“Nasdaq” or “Exchange”) filed with the Securities and Exchange Commission (“Commission”) a proposed minor rule violation plan (“MRVP”) pursuant to Section 19(d)(1) of the Securities Exchange Act of 1934 (“Act”), 1 and Rule 19d-1(c)(2) thereunder. 2 The proposed MRVP was published for public comment on March 16, 2006. 3 The Commission received no comments on the proposal. This order approves Nasdaq's proposed MRVP. 1 15 U.S.C. 78s(d)(1). 2 17 CFR 240.19d-1(c)(2). 3 *See* Securities Exchange Act Release No. 53428 (March 7, 2006), 71 FR 13645. Nasdaq's MRVP specifies those uncontested minor rule violations with sanctions not exceeding $2,500 which would not be subject to the provisions of Rule 19d-1(c)(1) under the Act 4 requiring that a self-regulatory organization promptly file notice with the Commission of any final disciplinary action taken with respect to any person or organization. 5 In accordance with paragraph (c)(2) of Rule 19d-1 of the Act, Nasdaq proposes to designate certain specified rule violations as minor rule violations, and requests that it be relieved of the reporting requirements regarding such violations, provided it gives notice of such violations to the Commission on a quarterly basis. Nasdaq proposes to include in its proposed MRVP the policies and procedures currently included in Nasdaq Rule 9216(b) (“Procedure for Violations Under Plan Pursuant to SEC Rule 19d-1(c)(2)”) and the rule violations currently included in Nasdaq Rule IM-9216 (“Violations Appropriate for Disposition Under Plan Pursuant to SEC Rule 19d-1(c)(2)”). 6 4 17 CFR 240.19d-1(c)(1). 5 The Commission adopted amendments to paragraph

(c)of Rule 19d-1 to allow self-regulatory organizations (“SROs”) to submit for Commission approval plans for the abbreviated reporting of minor disciplinary infractions. *See* Securities Exchange Act Release No. 21013 (June 1, 1984), 49 FR 23828 (June 8, 1984). Any disciplinary action taken by an SRO against any person for violation of a rule of the SRO which has been designated as a minor rule violation pursuant to such a plan filed with the Commission shall not be considered “final” for purposes of Section 19(d)(1) of the Act if the sanction imposed consists of a fine not exceeding $2,500 and the sanctioned person has not sought an adjudication, including a hearing, or otherwise exhausted his administrative remedies. 6 On January 13, 2006, the Commission approved Nasdaq's application for registration as a national securities exchange, including the rules governing the Nasdaq exchange. Securities Exchange Act Release No. 53128, 71 FR 3550 (January 23, 2006). In the approval order, the Commission noted that Nasdaq Rule 9216(b) and IM-9216 provided for the imposition of fines for minor rule violations pursuant to a minor rule violation plan. Accordingly, the Commission noted that as a condition to the operation of the Nasdaq Exchange, Nasdaq must file a minor rule violation plan with the Commission. Nasdaq represented that modifications may be made to IM-9216 in the future. Nasdaq proposed that when amendments to IM-9216 are made pursuant to a rule filing submitted under Rule 19b-4 of the Act, such a filing would automatically be deemed a request by Nasdaq for Commission approval of a modification to its MRVP. Pursuant to Nasdaq's proposed MRVP, under Rule 9216(b) and IM-9216, Nasdaq or the Nasdaq Review Counsel may impose a fine (not to exceed $2,500) and/or a censure on a member or an associated person with respect to any rule listed in IM-9216. If the person against whom the fine or censure is imposed does not dispute the violation, the Department of Enforcement or the Department of Market Regulation may prepare and request that such person execute a minor rule violation plan letter. In such a letter, the member or associated person accepts a finding of violation, consents to the imposition of sanctions, and agrees to waive the right to a hearing before a Hearing Panel (or, if applicable, an Extended Hearing Panel); any right of appeal to the Nasdaq Review Council, the Commission, or the courts; and any other challenge to the validity of the letter. The letter will describe the act or practice engaged in or omitted; the rule, regulation, or statutory provision violated; and the sanction or sanctions to be imposed. If a member or associated person executes the minor rule violation plan letter, the letter is submitted to the Nasdaq Review Council. The Office of Disciplinary Affairs may accept the letter or refer it to the Nasdaq Review Council for acceptance or rejection. Similarly, the Review Subcommittee of the Nasdaq Review Council may accept or reject the letter or refer it to the Nasdaq Review Council for acceptance or rejection. If the letter is rejected, Nasdaq may take any other appropriate disciplinary action with respect to the alleged violation or violations. Nasdaq proposed that the quarterly report of actions taken on minor rule violations under Rule 9216(b) and IM-9216 would list for each violation: Nasdaq's internal file number for the case, the name of the individual and/or organization, the nature of the violation, the specific rule provision(s) violated, the sanction imposed, the number of times the rule violation has occurred, and the date of disposition. The Commission finds that the proposed MRVP is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange. In particular, the Commission believes that the proposal is consistent with Section 6(b)(5) of the Act, 7 which requires that the rules of an exchange be designed to promote just and equitable principles of trade, to remove impediments and to perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. The Commission also believes that that proposal is consistent with Sections 6(b)(1) and 6(b)(6) of the Act 8 which require that the rules of an exchange enforce compliance with, and provide appropriate discipline for, violations of the Commission and Exchange rules. In addition, because the MRVP offer procedural rights to a person sanctioned under Rule 9216(b), the Commission believes that Rule 9216(b) provides a fair procedure for the disciplining of members and persons associated with members, consistent with Sections 6(b)(7) and 6(d)(1) of the Act. 9 7 15 U.S.C. 78f(b)(5). 8 15 U.S.C. 78f(b)(1) and 78f(b)(6). 9 15 U.S.C. 78f(b)(7) and 78f(d)(1). Finally, the Commission finds that the proposal is consistent with the public interest, the protection of investors, or otherwise in furtherance of the purposes of the Act, as required by Rule 19d-1(c)(2) under the Act, 10 because the MRVP strengthens Nasdaq's ability to carry out its oversight and enforcement responsibilities as a self-regulatory organization in cases where full disciplinary proceedings are unsuitable in view of the minor nature of the particular violation. 10 17 CFR 240.19d-1(c)(2). In approving this proposal, the Commission in no way minimizes the importance of compliance with Exchange rules and all other rules subject to the imposition of sanctions under Rule 9216(b). The Commission believes that the violation of any self-regulatory organization's rules, as well as Commission rules, is a serious matter. However, Rule 9216(b) provides a reasonable means of addressing violations that do not rise to the level of requiring formal disciplinary proceedings, while providing greater flexibility in handling certain violations. The Commission expects that Nasdaq will continue to conduct surveillance with due diligence and make a determination based on its findings, on a case-by-case basis, whether a sanction under the MRVP is appropriate, or whether a violation requires formal disciplinary action. *It is therefore ordered* , pursuant to Rule 19d-1(c)(2) under the Act, 11 that the proposed MRVP for Nasdaq, File No. 4-514, be, and hereby is, approved. 11 *Id.* For the Commission, by the Division of Market Regulation, pursuant to delegated authority. 12 Nancy M. Morris, Secretary. 12 17 CFR 200.30-3(a)(44). [FR Doc. E6-5653 Filed 4-14-06; 8:45 am] BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-53629; File No. SR-CBOT-2006-02] Self-Regulatory Organizations; Board of Trade of the City of Chicago, Inc.; Notice of Filing and Order Granting Accelerated Approval to a Proposed Rule Change Relating to Security Futures Market Maker Registration Policy and Procedures April 10, 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 March 16, 2006, the Board of Trade of the City of Chicago, Inc. (“CBOT” or “Exchange”) filed with the Securities and Exchange Commission (“Commission”) the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the CBOT. The Commission is publishing this notice and order to solicit comments on the proposed rule change from interested persons and to grant accelerated approval to the proposed rule change. 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b-4. I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The CBOT proposes to adopt a new Security Futures Market Maker Registration Policy and Procedures. The text of the proposed rule change appears below. New language is in *italics.* Chicago Board of Trade Security Futures Market Maker Registration Policy and Procedures Security Futures Market Maker Program *Pursuant to CBOT® Rule 225.00, the Exchange has adopted a security futures market maker program under which an individual member or member firm (each referred to as a “member” herein) may be registered with the CBOT as a “Security Futures Dealer” with respect to one or more security futures contracts traded on the Exchange, to provide liquidity and orderliness in the market for such contracts. In order to be registered as a Security Futures Dealer, the member must complete and file with the Exchange, a CBOT Security Futures Dealer Registration Form (attached below). The member will be required to identify all CBOT security futures contracts for which it seeks to be registered as a Security Futures Dealer and to elect one of the categories of market maker obligations set forth in CBOT Regulation 431.07(c), which are described below. By signing the Registration Form, the member will confirm that it meets and will continue to meet the requirements to act as a security futures market maker under CBOT Rules and Regulations.* Market Maker Exclusion From Security Futures Customer Margin Requirements *A member that is a security futures market maker will be excluded from the security futures customer margin requirements set forth in CBOT Regulation 431.07, if the member meets all of the following qualifications:* *(i) The member must be registered with the Exchange as a dealer in security futures as defined in Section 3(a)(5) of the Securities Exchange Act of 1934 (“Exchange Act”); and* *(ii) The member must be registered as a floor broker or a floor trader under section 4f(a)(1) of the Commodity Exchange Act (“CEA”), or be registered as a dealer with the Securities and Exchange Commission (“SEC”) under Section 15(b) of the Exchange Act; and* *(iii) The member must maintain records sufficient to prove compliance with the requirements set forth in CBOT Regulation 431.07 and Commodity Futures Trading Commission (“CFTC”) Regulation 41.42(c)(2)(v) or SEC Regulation 242.400(c)(2)(v), as applicable, including without limitation, trading account statements and other financial records sufficient to detail activity; and* *(iv) The member must hold itself out as being willing to buy and sell security futures for its own account on a regular or continuous basis.* *CBOT Regulation 431.07 also provides that any market maker that fails to comply with applicable CBOT, CFTC, or SEC Rules or Regulations, shall be subject to disciplinary action in accordance with Chapter 5 of the CBOT Rulebook. Appropriate sanctions in the case of any such failure shall include, without limitation, a revocation of the market maker's registration with the Exchange as a Security Futures Dealer.* Market Maker Categories *CBOT Regulation 431.07(c) specifies three alternative ways for a member to satisfy the requirement that a market maker hold itself out as being willing to buy and sell security futures for its own account on a regular or continuous basis. Each member seeking market maker designation must register for one of the following three market maker categories and will undertake to perform all of the obligations set forth in the elected category:* Category 1 (CBOT Regulation 431.07(c)(1)) *The market maker will provide continuous two-sided quotations throughout the trading day for all delivery months of security futures contracts representing a meaningful proportion of the total trading volume of security futures contracts on the Exchange,* subject to relaxation during unusual market conditions as determined by the Exchange (such as a fast market in either a security futures contract or a security underlying a security futures contract) at which times the market maker must use its best efforts to quote continuously and competitively. The market maker must provide quotations for a minimum quantity of one

(1)contract with a maximum bid/ask spread of no more than the greater of $0.20 or 150% of the bid/ask spread in the primary market for the underlying security.* Category 2 (CBOT Regulation 431.07(c)(2)) * The market maker will respond to at least 75% of the requests for quotation for all delivery months of security futures contracts representing a meaningful proportion of the total trading volume of security futures contracts on the Exchange,* subject to relaxation during unusual market conditions as determined by the Exchange (such as a fast market in either a security futures contract or a security underlying a security futures contract) at which times the market maker must use its best efforts to quote competitively. When responding to requests for quotation, the market maker must quote within five seconds for a minimum quantity of one

(1)contract with a maximum bid/ask spread of no more than the greater of $0.20 or 150% of the bid/ask spread in the primary market for the underlying security. * * *Beginning on the 181st calendar day after the commencement of trading of security futures contracts on the Exchange, a “meaningful proportion of the total trading volume of security futures contracts on the Exchange” will mean a minimum of 20% of such trading volume.* Category 3 (CBOT Regulation 431.07(c)(3)) *(i) The market maker will be assigned to a group of security futures contracts listed on the Exchange that is either unlimited in nature (“Unlimited Assignment”) or will be assigned to no more than 20% of the security futures contracts listed on the Exchange (“Limited Assignment”); and* *

(ii)At least 75% of the market maker's total trading activity in CBOT security futures contracts must be in its assigned security futures contracts, measured on a quarterly basis; and * *(iii) During at least 50% of the trading day, the market maker must have bids or offers in the market that are at or near the best market, except in unusual market conditions as determined by the Exchange (such as a fast market in either a security futures contract or a security underlying a security futures contract), with respect to at least 25% (in the case of an Unlimited Assignment) or at least one

(1)(in the case of a Limited Assignment) of its assigned security futures contracts; and* *(iv) The requirements in

(ii)and

(iii)must be satisfied on at least the following percentages of trading days in each calendar quarter:* *(a) 90% (in the case of an Unlimited Assignment);* *(b) 80% (in the case of a Limited Assignment); or* *(c) 80% (in the case of either an Unlimited Assignment or a Limited Assignment if the Exchange is listing four or fewer security futures contracts).* Qualification for “60/40” Tax Treatment *To qualify as a “dealer” in security futures contracts within the meaning of section 1256(g)(9) of the Internal Revenue Code of 1986, as amended (“Code”), a member is required to:* *(i) Register as a Security Futures Dealer for purposes of the Exchange's security futures margin rules under Category 1 or Category 2 above; and* *(ii) Undertake in its registration form to provide quotations for all products specified for the market maker exclusion from the CBOT security futures margin rules; and* *(iii) Quote a minimum size of:* *(a) Ten

(10)contracts for each security futures product not covered by

(b)or

(c)below;* *(b) Five

(5)contracts for each security futures product specified by the member to the extent such quotations are provided for delivery months other than the next two delivery months then trading; and* *(c) One

(i)Register as a CBOT Security Futures Dealer for purposes of the Exchange's security futures customer margin rules under Category 1 or Category 2 (proposed CBOT Regulation 431.07(c)(1) or (c)(2));

(ii)undertake in its registration form to provide quotations for all contracts specified for the market maker exclusion from the Exchange's security futures customer margin rules; and

(iii)quote a minimum size of: 6 26 U.S.C. 1256(g)(9).

(a)Ten

(10)contracts for each security futures product not covered by

(b)or

(c)below;

(b)Five

(5)contracts for each security futures product specified by the market maker to the extent such quotations are provided for delivery months other than the next two delivery months then trading; and

(c)One

(1)contract for any single stock futures contract where the average market price for the underlying security was $100 or higher for the preceding calendar month or for any futures contract on a narrow-based security index, as defined by section 1a(25) of the CEA. 7 7 7 U.S.C. 1a(25). 2. Statutory Basis The CBOT believes that the proposal is consistent with section 6(b) of the Act, 8 in general, and section 6(b)(5) of the Act, 9 in particular, which requires, among other things, that exchange rules be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, and, in general, to protect investors and the public interest. The Exchange believes that the proposed rule change establishes procedures and policies for its security futures market maker program, which, according to the Exchange, are designed to provide liquidity and orderliness in the markets for CBOT security futures contracts. Thus, the CBOT believes that the proposed rule change promotes just and equitable principles of trade and protects investors and the public interest. 8 15 U.S.C. 78f(b). 9 15 U.S.C. 78f(b)(5). B. Statement of Burden on Competition The CBOT 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. Comments on the Proposed Rule Change Received From Members, Participants, or Others The Exchange has not solicited or received any written comments regarding the proposed rule change, nor will any such comments be solicited. III. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission's Internet comment form ( *http://www.sec.gov/rules/sro.shtml* ); • Send an e-mail to *rule-comments@sec.gov.* Please include File Number SR-CBOT-2006-02 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-CBOT-2006-02. This file number should be included on the subject line if e-mail is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site ( *http://www.sec.gov/rules/sro.shtml* ). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for inspection and copying in the Commission's Public Reference Section. Copies of such filing also will be available for inspection and copying at the principal office of the CBOT. All comments received will be posted without change; the Commission does not edit identifying personal information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File No. SR-CBOT-2006-02 and should be submitted on or before May 8, 2006. IV. Commission Findings and Order Granting Accelerated Approval of Proposed Rule Change The Commission finds that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange. 10 In particular, the Commission believes that the proposed rule change is consistent with the requirements of section 6(b)(5) of the Act, 11 which requires, among other things, that the rules of the Exchange be designed to promote just and equitable principles of trade and, in general, to protect investors and the public interest. In addition, the Commission believes that the proposed rule change is consistent with section 7(c)(2)(B) of the Act, 12 which provides, among other things, that the margin requirements for securities futures must preserve the financial integrity of markets trading security futures and prevent systemic risk. The Commission also believes that the proposed rule change is consistent with Rule 400(c)(2)(v) under the Act, 13 which permits a national securities exchange to adopt rules containing specific requirements for security futures dealers to qualify for an exclusion from the margin requirements for securities futures under section 7(c)(2)(B) of the Act. 14 The Commission believes that the proposed obligations for market makers satisfy this requirement. Specifically, the Commission believes that the Exchange's market maker registration policy and procedures, and the qualification requirements for “60/40” tax treatment, should help ensure that market makers provide liquidity and orderliness in the CBOT market. 10 In approving the proposed rule, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). 11 15 U.S.C. 78f(b)(5). 12 15 U.S.C. 78g(c)(2)(B). 13 17 CFR 242.400(c)(2)(v). 14 15 U.S.C. 78g(c)(2)(B). The CBOT has requested that the Commission approve the proposed rule change prior to the thirtieth day after publication of notice of the filing in the **Federal Register** . The Commission believes that the market maker registration policy and procedures and the qualification requirement for “60/40” tax treatment are an extension of the obligations adopted in connection with the CBOT's customer margin rules, which set forth the standards under which a CBOT member may be excluded from the Exchange's margin requirements as a “market maker,” and therefore should raise no novel regulatory issues related to margin requirements. 15 Furthermore, the Commission notes that the proposed rule change is substantially similar to OneChicago, LLC's market maker registration policy and procedures, which were approved by the Commission. Accordingly, the Commission finds good cause, consistent with section 19(b)(2) of the Act, 16 to approve the proposed rule change prior to the thirtieth day after publication of the notice of filing thereof in the **Federal Register** . 15 *See* Securities Exchange Act Release No. 50115 (July 29, 2004) 69 FR 48261 (August 9, 2004). 16 15 U.S.C. 78s(b)(2). V. Conclusion *It is therefore ordered,* pursuant to section 19(b)(2) of the Act 17 that the proposed rule change (SR-CBOT-2006-02) is hereby approved on an accelerated basis. 17 *Id.* 18 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Market Regulation, pursuant to delegated authority. 18 Nancy M. Morris, Secretary. [FR Doc. E6-5611 Filed 4-14-06; 8:45 am] BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-53626; File No. SR-CBOT-2006-01] Self-Regulatory Organizations; Board of Trade of the City of Chicago, Inc.; Notice of Filing and Order Granting Accelerated Approval of Proposed Rule Change Relating to Customer Margin Requirements for Security Futures April 10, 2006. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Exchange Act”), 1 and Rule 19b-4 thereunder, 2 notice is hereby given that on March 2, 2006, the Board of Trade of the City of Chicago, Inc. (“CBOT®” or “Exchange”) filed with the Securities and Exchange Commission (“Commission” or “SEC”) the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons and to grant accelerated approval to the proposed rule change. 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b-4. I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange is proposing to establish procedures relating to the determination and administration of customer margin for security futures positions established on the Exchange and maintained in futures accounts. Further, the proposed regulations define the applicability of these requirements, specifically excluding qualifying security futures dealers from customer security futures margin requirements and related regulatory requirements. The text of the proposed rule change is below. New text is italicized. New Regulation 431.07 Customer Margins for Security Futures Positions Held in Futures Accounts *Margin requirements associated with Security Futures positions, which result from transactions made on the Exchange on behalf of Customers, and which are held in a futures account, shall be determined and administered in accordance with the Rules and Regulations of the Exchange, and in compliance with CFTC Regulations 41.42 through 41.49 and SEC Regulations 242.400 through 242.406. With regard to such Security Futures positions, if Exchange Rules or Regulations are inconsistent with CFTC Regulations 41.42 through 41.49 and SEC Regulations 242.400 through 242.406, including any successor Regulations, the CFTC and SEC Regulations shall prevail.* *(a) Initial and maintenance margin rates used in determining Exchange margin requirements applicable to Security Futures that are held on behalf of Customers in a futures account, shall be established at levels no lower than those prescribed by CFTC Regulation 41.45 and SEC Regulation 242.403, including any successor Regulations.* *(b) As used in this Regulation, the term “Customer” does not include

(a)an “exempted person” as defined in CFTC Regulation 41.43(a)(9) and SEC Regulation 242.401(a)(9); or

(b)Market Makers as defined below.* *(c) A Person shall be a “Market Maker” for purposes of this Rule, and shall be excluded from the requirements set forth in CFTC Regulations 41.42 through 41.49 and SEC Regulations 242.400 through 242.406, as applicable, in accordance with CFTC Regulation 41.42(c)(2)(v) and SEC Regulation 242.400(c)(2)(v), with respect to all trading in Security Futures for its own account, if such Person is an Exchange Member that is registered with the Exchange as a “Security Futures Dealer.”* *Each such Market Maker shall:

(a)be a member of the Exchange and be registered as a floor trader or a floor broker with the CFTC under Section 4f(a)(1) of the CEA or be registered as a dealer with the SEC under Section 15(b) of the Exchange Act;

(b)maintain records sufficient to prove compliance with the requirements set forth in this Regulation and CFTC Regulation 41.42(c)(2)(v) or SEC Regulation 242.400(c)(2)(v), as applicable, including without limitation, trading account statements and other financial records sufficient to detail activity; and

(c)hold itself out as being willing to buy and sell Security Futures for its own account on a regular or continuous basis.* *A Market Maker satisfies condition

(c)above if any of the following three requirements are fulfilled:* *(1) The Market Maker:* *

(i)Provides continuous two-sided quotations throughout the trading day for all delivery months of Security Futures Contracts representing a meaningful proportion of the total trading volume of Security Futures Contracts on the Exchange, subject to relaxation during unusual market conditions as determined by the Exchange (such as a fast market in either a Security Futures Contract or a security underlying a Security Futures Contract) at which times the Market Maker must use its best efforts to quote continuously and competitively; and * *(ii) When providing quotations, quotes with a maximum bid/ask spread of no more than the greater of $0.20 or 150% of the bid/ask spread in the primary market for the security underlying each Security Futures Contract.* *(2) The Market Maker:* *(i) Responds to at least 75% of the requests for quotation for all delivery months of Security Futures Contracts representing a meaningful proportion of the total trading volume of Security Futures Contracts on the Exchange, subject to relaxation during unusual market conditions as determined by the Exchange (such as a fast market in either a Security Futures Contract or a security underlying a Security Futures Contract) at which times the Market Maker must use its best efforts to quote competitively; and* *(ii) When responding to requests for quotation, quotes within five seconds with a maximum bid/ask spread of no more than the greater of $0.20 or 150% of the bid/ask spread in the primary market for the security underlying each Security Futures Contract.* *(3) The Market Maker:* *(i) Is assigned to a group of Security Futures Contracts listed on the Exchange that is either unlimited in nature (“Unlimited Assignment”) or is assigned to no more that 20% of the Security Futures Contracts listed on the Exchange (“Limited Assignment”); and* *(ii) At least 75% of the Market Maker's total trading activity in Exchange Security Futures Contracts is in its assigned Security Futures Contracts, measured on a quarterly basis; and* *(iii) During at least 50% of the trading day, the Market Maker has bids or offers in the market that are at or near the best market, except in unusual market conditions as determined by the Exchange (such as a fast market in either a Security Futures Contract or a security underlying a Security Futures Contract), with respect to at least 25% (in the case of an Unlimited Assignment) or at least one (in the case of a Limited Assignment) of its assigned Security Futures Contracts; and* *(iv) The requirements in

(ii)and

(iii)are satisfied on

(a)at least 90% of the trading days in each calendar quarter by Market Makers who have undertaken an Unlimited Assignment; or

(b)at least 80% of the trading days in each calendar quarter by Market Makers who have undertaken a Limited Assignment; or

(c)on at least 80% of the trading days in each calendar quarter by Market Makers who have undertaken either an Unlimited Assignment or Limited Assignment but where the Exchange is listing four

(4)or fewer Security Futures Contracts.* *For purposes of clauses

(1)and

(2)above, beginning on the 181st calendar day after the commencement of trading of Security Futures Contracts on the Exchange, a “meaningful proportion of the total trading volume of Security Futures Contracts on the Exchange” shall mean a minimum of 20% of such trading volume.* *Any Market Maker that fails to comply with the applicable Rules of the Exchange, CFTC Regulations 41.42 through 41.49 or SEC Regulations 242.400 through 242.406, as applicable, shall be subject to disciplinary action in accordance with Chapter 5. Appropriate sanctions in the case of any such failure shall include, without limitation, a revocation of such Market Maker's registration with the Exchange as a Security Futures Dealer.* *(d) The Exchange shall establish initial and maintenance margin requirements applicable to Security Futures that are held in a futures account, provided that the margin requirement for any long or short position held by a member firm on behalf of a Customer shall not be less than 20% of the current market value of the relevant Security Futures Contract, or such other requirement as may be established by the CFTC and SEC for purposes of CFTC Regulation 41.45(b)(1) and SEC Regulation 242.403(b)(1), unless a lower margin level is available for such position pursuant to paragraph

(e)below.* *(e) Initial and maintenance margin requirements for offsetting positions involving Security Futures and related positions are provided in the schedule below, for purposes of CFTC Regulation 41.45(b)(2) and SEC Regulation 242.403(b)(2).* *Margin Requirements for Offsetting Positions* 1 * Long security future (or basket of security futures representing each component of a narrow-based securities index 3 ) and long put option 4 on the same underlying security (or index * ) *Individual stock or narrow-based security index* *20% of the current market value of the long security future, plus pay for the long put in full* * The lower of:

(1)10% of the aggregate exercise price 5 of the put plus the aggregate put out-of-the-money 6 amount, if any; or

(2)20% of the current market value of the long security future. * 2 *Short security future (or basket of security futures representing each component of a narrow-based securities index) and short put option on the same underlying security (or index)* *Individual stock or narrow-based security index* *20% of the current market value of the short security future, plus the aggregate put in-the-money amount, if any. Proceeds from the put sale may be applied* * 20% of the current market value of the short security future, plus the aggregate put in-the-money amount, if any. 7 * 3 *Long security future and short position in the same security (or securities basket) underlying the security future* *Individual stock or narrow-based security index* *The initial margin required under Regulation T for the short stock or stocks* *5% of the current market value as defined in Regulation T of the stock or stocks underlying the security future.* 4 *Long security future (or basket of security futures representing each component of a narrow-based securities index) and short call option on the same underlying security (or index)* *Individual stock or narrow-based security index* *20% of the current market value of the long security future, plus the aggregate call in-the-money amount, if any. Proceeds from the call sale may be applied* *20% of the current market value of the long security future, plus the aggregate call in-the-money amount, if any.* 5 *Long a basket of narrow-based security futures that together tracks a broad-based index and short a broad-based security index call option contract on the same index* *Narrow-based security index* *20% of the current market value of the long basket of narrow-based security futures, plus the aggregate call in-the-money amount, if any. Proceeds from the call sale may be applied* *20% of the current market value of the long basket of narrow-based security futures, plus the aggregate call in-the-money amount, if any.* 6 *Short a basket of narrow-based security futures that together tracks a broad-based security index and short a broad-based security index put option contract on the same index* *Narrow-based security index* *20% of the current market value of the short basket of narrow-based security futures, plus the aggregate put in-the-money amount, if any. Proceeds from the put sale may be applied* *20% of the current market value of the short basket of narrow-based security futures, plus the aggregate put in-the-money amount, if any.* 7 *Long a basket of narrow-based security futures that together tracks a broad-based security index and long a broad-based security index put option contract on the same index* *Narrow-based security index* *20% of the current market value of the long basket of narrow-based security futures, plus pay for the long put in full* *The lower of:

(1)10% of the aggregate exercise price of the put, plus the aggregate put out-of-the-money amount, if any; or

(2)20% of the current market value of the long basket of security futures.* 8 *Short a basket of narrow-based security futures that together tracks a broad-based security index and long a broad-based security index call option contract on the same index* *Narrow-based security index* *20% of the current market value of the short basket of narrow-based security futures, plus pay for the long call in full* *The lower of:

(1)10% of the aggregate exercise price of the call, plus the aggregate call out-of-the-money amount, if any; or

(2)20% of the current market value of the short basket of security futures.* 9 *Long security future and short security future on the same underlying security (or index)* *Individual stock or narrow-based security index* *The greater of:

(1)5% of the current market value of the long security future; or

(2)5% of the current market value of the short security future* *The greater of:

(1)5% of the current market value of the long security future; or

(2)5% of the current market value of the short security future.* 10 *Long security future, long put option and short call option. The long security future, long put and short call must be on the same underlying security and the put and call must have the same exercise price. (Conversion)* *Individual stock or narrow-based security index* *20% of the current market value of the long security future, plus the aggregate call in-the-money amount, if any, plus pay for the put in full. Proceeds from the call sale may be applied* *10% of the aggregate exercise price, plus the aggregate call in-the-money amount, if any.* 11 *Long security future, long put option and short call option. The long security future, long put and short call must be on the same underlying security and the put exercise price must be below the call exercise price (Collar)* *Individual stock or narrow-based security index* *20% of the current market value of the long security future, plus the aggregate call in-the-money amount, if any, plus pay for the put in full. Proceeds from call sale may be applied* *The lower of:

(1)10% of the aggregate exercise price of the put plus the aggregate put out-of-the money amount, if any; or

(2)20% of the aggregate exercise price of the call, plus the aggregate call in-the-money amount, if any.* 12 *Short security future and long position in the same security (or securities basket) underlying the security future* *Individual stock or narrow-based security index* *The initial margin required under Regulation T for the long stock or stocks* *5% of the current market value, as defined in Regulation T, of the long stock or stocks.* 13 *Short security future and long position in a security immediately convertible into the same security underlying the security future, without restriction, including the payment of money* *Individual stock or narrow-based security index* *The initial margin required under Regulation T for the long security* *10% of the current market value, as defined in Regulation T, of the long security.* 14 *Short security future (or basket of security futures representing each component of a narrow-based securities index) and long call option or warrant on the same underlying security (or index)* *Individual stock or narrow-based security index* *20% of the current market value of the short security future, plus pay for the call in full* *The lower of:

(1)10% of the aggregate exercise price of the call, plus the aggregate call out-of-the-money amount, if any; or

(2)20% of the current market value of the short security future.* 15 *Short security future, short put option and long call option. The short security future, short put and long call must be on the same underlying security and the put and call must have the same exercise price. (Reverse Conversion)* *Individual stock or narrow-based security index* *20% of the current market value of the short security future, plus the aggregate put in-the-money amount, if any, plus pay for the call in full. Proceeds from put sale may be applied* *10% of the aggregate exercise price, plus the aggregate put in-the-money amount, if any.* 16 *Long (short) a basket of security futures, each based on a narrow-based security index that together tracks the broad-based index and short

(long)a broad-based index future* *Narrow-based security index* *5% of the current market value for the long (short) basket of security futures* *5% of the current market value of the long (short) basket of security futures.* 17 *Long (short) a basket of security futures that together tracks a narrow-based index and short

(long)a narrow-based index future* *Individual stock or narrow-based security index* *The greater of:

(1)5% of the current market value of the long security future(s); or

(2)5% of the current market value of the short security future(s)* *The greater of:

(1)5% of the current market value of the long security future(s); or

(2)5% of the current market value of the short security future(s).* 18 * Long (short) a security future and short

(long)an identical security future traded on a different market. 8 * *Individual stock or narrow-based security index* *The greater of:

(1)3% of the current market value of the long security future(s); or

(2)3% of the current market value of the short security future(s)* *The greater of:

(1)3% of the current market value of the long security future(s); or

(2)3% of the current market value of the short security future(s).* New Regulation 431.08 Acceptable Margin for Security Futures and Treatment of Undermargined Accounts 3 *Baskets of securities or security futures contracts must replicate the securities that comprise the index, and in the same proportion.* 4 *Generally, for the purposes of these regulations, unless otherwise specified, stock index warrants shall be treated as if they were index options.* 5 *“Aggregate exercise price,” with respect to an option or warrant based on an underlying security, means the exercise price of an option or warrant contract multiplied by the numbers of units of the underlying security covered by the option contract or warrant. “Aggregate exercise price” with respect to an index option, means the exercise price multiplied by the index multiplier. See, e.g., Amex Rules 900 and 900C; CBOE Rule 12.3; and NASD Rule 2522.* 6 *“Out-of-the-money” amounts shall be determined as follows:* *(1) for stock call options and warrants, any excess of the aggregate exercise price of the option or warrant over its current market value (as determined in accordance with Regulation T of the Board of Governors of the Federal Reserve System);* *(2) for stock put options or warrants, any excess of the current market value (as determined in accordance with Regulation T of the Board of Governors of the Federal Reserve System) of the option or warrant over its aggregate exercise price;* *(3) for stock index call options and warrants, any excess of the aggregate exercise price of the option or warrant over the product of the current index value and the applicable index multiplier; and* *(4) for stock index put options and warrants, any excess of the product of the current index value and the applicable index multiplier over the aggregate exercise price of the option or warrant. See, e.g., NYSE Rule 431 (Exchange Act Release No. 42011 (October 14, 1999), 64 FR 57172 (October 22, 1999) (order approving SR-NYSE-99-03)); Amex Rule 462 (Exchange Act Release No. 43582 (November 17, 2000), 65 FR 71151 (November 29, 2000) (order approving SR-Amex-99-27)); CBOE Rule 12.3 (Exchange Act Release No. 41658 (July 27, 1999), 64 FR 42736 (August 5, 1999) (order approving SR-CBOE-97-67)); or NASD Rule 2520 (Exchange Act Release No. 43581 (November 17, 2000), 65 FR 70854 (November 28, 2000) (order approving SR-NASD-00-15)).* 7 *“In-the-money” amounts must be determined as follows:* *(1) for stock call options and warrants, any excess of the current market value (as determined in accordance with Regulation T of the Board of Governors of the Federal Reserve System) of the option or warrant over its aggregate exercise price;* *(2) for stock put options or warrants, any excess of the aggregate exercise price of the option or warrant over its current market value (as determined in accordance with Regulation T of the Board of Governors of the Federal Reserve System);* *(3) for stock index call options and warrants, any excess of the product of the current index value and the applicable index multiplier over the aggregate exercise price of the option or warrant; and* *(4) for stock index put options and warrants, any excess of the aggregate exercise price of the option or warrant over the product of the current index value and the applicable index multiplier.* 8 *Two security futures will be considered “identical” for this purpose if they are issued by the same clearing agency or cleared and guaranteed by the same derivatives clearing organization, have identical contract specifications, and would offset each other at the clearing level.* *Notwithstanding any other Exchange Rules or Regulations, the following provisions shall establish the acceptable margin for Security Futures Positions that are held on behalf of Customers in a futures account, and the treatment of undermargined futures accounts containing Security Futures Contracts.* *(a) Member firms may accept from their Customers as margin for Security Futures held in a futures account, deposits of cash, margin securities (subject to the limitations set forth in the following sentence), exempted securities, any other assets permitted under Regulation T of the Board of Governors of the Federal Reserve System (as in effect from time to time) to satisfy a margin deficiency in a securities margin account, and any combination of the foregoing, each as valued in accordance with CFTC Regulations 41.46(c) and 41.46(e) or SEC Regulations 242.404(c) and 242.404(e), as applicable. Shares of a money market mutual fund that meet the requirements of CFTC Regulation 1.25 may be accepted as a margin deposit from a Customer for purposes of this Rule.* ( *b) A member firm shall not accept as margin from any Customer securities that have been issued by such Customer or an Affiliate of such Customer unless such member firm files a petition with and receives permission from the Exchange for such purpose.* *(c) All assets deposited by a Customer to meet margin requirements must be and remain unencumbered by third party claims against the depositing Customer.* *(d) If a Customer fails to comply with a margin call within a reasonable period of time (the member firm may deem one hour to be a reasonable period of time), the relevant member firm shall take the deduction required with respect to an undermargined account in computing its net capital under applicable CFTC and SEC Regulations.* *

(e)If at any time there is a liquidating deficit in an account in which Security Futures are held, the member firm shall take steps to liquidate positions in the account promptly and in an orderly manner. * II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of, and basis for, the proposed rule change. The text of these statements may be examined at the places specified in Item III below. The 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 Proposed Regulation 431.07 generally establishes that the determination and administration of customer margins shall be consistent with prevailing practices on the Exchange. To the extent, however, that Exchange practices may be inconsistent with Commodity Futures Trading Commission (“CFTC”) Regulations 41.42 through 41.49 9 or SEC Regulations 242.400 through 242.406, 10 as applicable, the CFTC and SEC Regulations shall prevail. 9 17 CFR 41.42-41.49. 10 17 CFR 242.400-406. *General Applicability* —Proposed Regulation 431.07 only applies to security futures transactions executed on the CBOT. To the extent that security futures intermediaries engage in security futures transactions on or through other exchanges, they will need to comply with the margin requirements established by those other exchanges with respect to such transactions. In addition, proposed Regulation 431.07 only applies to transactions made on behalf of “Customers” as defined in paragraph

(b)of the proposed Regulation. Furthermore, proposed Regulation 431.07 is applicable only to security futures positions held in futures accounts. While security futures may alternatively be held in a securities account, the administration of securities accounts will be governed by applicable regulations, and by rules adopted by other relevant self-regulatory organizations. Proposed Regulation 431.07(b) excludes “exempted persons” and “Market Makers” from the definition of “Customer.” Therefore, the transactions of exempted persons and Market Makers are not subject to the customer margin requirements set forth in proposed Regulation 431.07. Exempted persons are identified by reference to applicable CFTC and SEC Regulations and Market Makers are defined as described below. *Market Maker Exclusion* —CFTC Regulation 41.42(c)(2)(v) 11 and SEC Regulation 242.400(c)(2)(v) 12 permit exchanges to adopt rules containing specified requirements for security futures dealers, on the basis of which the financial relations between security futures intermediaries and qualifying security futures dealers are excluded from the customer margin requirements for security futures. Any rules so adopted by an exchange must meet the criteria set forth in Section 7(c)(2)(B) of the Exchange Act. 13 11 17 CFR 41.42(c)(2)(v). 12 17 CFR 242.400(c)(2)(v). 13 15 U.S.C. 78g(c)(2)(B). Proposed Regulation 431.07(c) relies on CFTC Regulation 41.42(c)(2)(v) 14 and SEC Regulation 242.400(c)(2)(v) 15 in establishing a Market Maker exclusion. In particular, CBOT members who meet certain qualifications would be permitted to register with the Exchange as Security Futures Dealers, such that their accounts would not be subject to customer security futures margin requirements. Rather, their accounts would be subject to security futures margin requirements established pursuant to proposed Regulation 431.07(d). 14 17 CFR 41.42(c)(2)(v). 15 17 CFR 242.400(c)(2)(v). Market Makers will be floor traders or floor brokers registered with the CFTC under Section 4f(a)(1) of the Commodity Exchange Act, as amended (“CEA”), 16 or dealers registered with the SEC under Section 15(b) of the Exchange Act. 17 As such, they may not qualify as exempted persons within the meaning of Regulation 242.401(a)(9) under the Exchange Act. 18 Absent the provisions of proposed Regulation 431.07, they arguably would have to be treated as customers for purposes of determining margin requirements, even with respect to their proprietary market making activities. This would be different from the treatment of security futures dealers on securities exchanges under Section 7(c)(3) of the Exchange Act, 19 and therefore would be contrary to the statutory objectives reflected in Section 7(c)(2)(B) of the Exchange Act. 20 16 7 U.S.C. 6f(a)(1). 17 15 U.S.C. 78(o)(b). 18 17 CFR 242.401(a)(9). 19 15 U.S.C. 78g(c)(3). 20 15 U.S.C. 78g(c)(2)(B). The Market Maker exclusion, as proposed, contains all of the criteria and limitations set forth in CFTC Regulation 41.42(c)(2)(v) 21 and SEC Regulation 242.400(c)(2)(v), 22 including a clause that requires that a Market Maker “hold itself out as being willing to buy and sell security futures for its own account on a regular or continuous basis.” In the release on Customer Margin Rules Relating to Security Futures (“Customer Margin Release”), 23 the Commission and the CFTC identified three alternate means by which to demonstrate such willingness, as follows: 21 17 CFR 41.42(c)(2)(v). 22 17 CFR 242.400(c)(2)(v). 23 Exchange Act Release No. 46292 (August 1, 2002), 67 FR 53146 (August 14, 2002). 1. An exchange may require market makers to effect a certain percentage of their security futures trades with persons other than those registered as market makers; 2. Market makers could be subject to rules that impose an affirmative obligation to quote on a regular or continuous basis; or 3. An exchange may require that a “large majority” of a market maker's revenue be derived from trading listed financial based derivatives including futures and options on stocks, stock indexes, foreign currencies, and interest rate instruments. The CBOT generally proposes to apply the second standard listed above, which includes affirmative obligations to make markets. Specifically, under proposed Regulation 431.07(c), a Market Maker is considered willing to hold itself out to buy and sell security futures on a continuous or regular basis if it fulfills any one of three tests. The first test, set forth in Regulation 431.07(c)(1), requires a Market Maker to provide: * * * continuous two-sided quotations throughout the trading day for all delivery months of [specified] Security Futures Contracts * * * and * * * [quote] * * * with a maximum bid/ask spread no more than the greater of $0.20 or 150% of the bid/ask spread in the primary market for the security underlying each Security Futures Contract. The second test, set forth in Regulation 431.07(c)(2), requires a Market Maker to respond: * * * to at least 75% of the requests for quotation for all delivery months of [specified] Security Futures Contracts * * * and * * * [w]hen responding to requests for quotation, [quote] within five seconds with a maximum bid/ask spread no more than the greater of $0.20 or 150% of the bid/ask spread in the primary market for the security underlying each Security Futures Contract. The first and second tests require Market Makers to be assigned to a meaningful proportion of Security Futures Contracts listed on the Exchange. A “meaningful proportion” is defined in proposed Regulation 431.07(c) to refer to Security Futures Contracts that represent at least 20% of the total Security Futures Contract trading volume on the Exchange after the 181st calendar day subsequent to the commencement of trading in Security Futures Contracts on the Exchange. The third test, set forth in Regulation 431.07(c)(3), requires that a Market Maker must be: * * * assigned to a group of Security Futures Contracts listed on the Exchange that is either unlimited in nature (“Unlimited Assignment”) or is assigned to no more that 20% of the Security Futures Contracts listed on the Exchange (“Limited Assignment”); and * * * [a]t least 75% of the Market Maker's total trading activity in Exchange Security Futures Contracts is in its assigned Security Futures Contracts, measured on a quarterly basis; and * * * [d]uring at least 50% of the trading day, the Market Maker has bids or offers in the market that are at or near the best market * * * with respect to at least 25% (in the case of an Unlimited Assignment) or at least one (in the case of a Limited Assignment) of its assigned Security Futures Contracts; and * * * [these obligations must be] satisfied on

(a)at least 90% of the trading days in each calendar quarter by Market Makers who have undertaken an Unlimited Assignment; or

(b)at least 80% of the trading days in each calendar quarter by Market Makers who have undertaken a Limited Assignment; or

(c)on at least 80% of the trading days in each calendar quarter * * * where the Exchange is listing four

(4)or fewer Security Futures Contracts. Market Makers are required to maintain books and records in order to evidence compliance with these standards. This recordkeeping requirement includes, without limitation, trading account statements and other financial records necessary to detail Market Maker activity. Failure on the part of a Market Maker to comply with these standards may result in revocation of the Market Maker's registration with the Exchange as a Security Futures Dealer, or other sanctions under CBOT Rules and Regulations. The CBOT believes that proposed Regulation 431.07(b) and

(c)are consistent with the requirements of the Exchange Act and with the explanations accompanying the publication of those requirements. *Margin Rates* —Proposed Regulation 431.07(a) requires that customer margin rates be established at levels no lower than those prescribed by CFTC Regulation 41.45 24 and SEC Regulation 242.403. 25 Proposed Regulation 431.07(d) specifically provides that the margin level for each long or short position in a Security Futures contract held on behalf of a customer shall not be less than 20% of the current market value of such Security Futures contract, as required by SEC Regulation 242.403(b)(1) 26 and CFTC Regulation 41.45(b)(1). 27 24 17 CFR 41.45. 25 17 CFR 242.403. 26 17 CFR 242.403(b)(1). 27 17 CFR 41.45(b)(1). Exceptions to the 20% requirement are established under proposed Regulation 431.07(e). These exceptions rely upon SEC Regulation 242.403(b)(2) 28 and CFTC Regulation 41.45(b)(2) 29 that provide that a self-regulatory authority may set the required initial or maintenance margin level for offsetting positions involving security futures and related positions at a level lower than the level that would apply if margin requirements for such positions were calculated separately based on the 20% requirement, provided that the rules establishing such lower margin levels meet the criteria set forth in Section 7(c)(2)(B) of the Exchange Act. 30 That Section requires that: 28 17 CFR 242.403(b)(2). 29 17 CFR 41.45(b)(2). 30 15 U.S.C. 78g(c)(2)(B).

(I)The margin requirements for a security futures product be consistent with the margin requirements for comparable option contracts traded on any exchange registered pursuant to Section 6(a) of [the Exchange Act]; and

(II)Initial and maintenance margin levels for a security futures product not be lower than the lowest level of margin, exclusive of premium, required for any comparable option contract traded on any exchange registered pursuant to Section 6(a) of [the Exchange Act], other than an option on a security future. Absent the margin relief afforded by proposed Regulation 431.07(e), security futures intermediaries would be required to collect margin from their customers equal to at least 20% of the current market value of the security futures held on behalf of such customers, even if such security futures positions were hedged. With respect to option contracts traded on securities exchanges, the Commission has recognized that it is appropriate for the SROs to recognize the hedged nature of certain combined options strategies and prescribe margin requirements that better reflect the risk of those strategies. 31 31 *See* Exchange Act Release Nos. 41658 (July 27, 1999), 64 FR 42736 (August 5, 1999) (order approving SR-CBOE-97-67 amending CBOE Rule 12.3); 42011 (October 14, 1999) (order approving SR-NYSE-99-03 amending NYSE Rule 431); 43582 (November 17, 2000), 65 FR 70854 (November 28, 2000) (order approving SR-Amex-99-27 amending Amex Rule 462); and 43581 (November 17, 2000), 65 FR 71151 (November 29, 2000) (order approving SR-NASD-00-15 amending NASD Rule 2520). The CBOT believes that the same considerations apply in connection with the determination of margin levels for offsetting positions involving security futures and related positions. If margin offsets were not available with respect to security futures, the customer margin requirements applicable to such instruments would effectively be inconsistent with, and more onerous than, the margin requirements for comparable option contracts traded on securities exchanges. This would be contrary to the statutory objectives reflected in Section 7(c)(2)(B) of the Exchange Act. 32 32 15 U.S.C. 78g(c)(2)(B). Proposed Regulation 431.07(e) incorporates a schedule which describes in detail the margin offsets available with respect to particular combinations of security futures and related positions. This schedule is substantively identical to the table of offsets included in the Customer Margin Release. While the table differs in certain respects from similar tables in effect for exchange-traded options, the Commission acknowledged in its Customer Margin Release that these limited differences are warranted by different characteristics of the instruments to which they relate. Accordingly, the CBOT believes that proposed Regulation 431.07(e) is consistent with the requirements of the Exchange Act and the Rules and Regulations thereunder. *Margin Administration* —Proposed Regulation 431.08(a) identifies the types of instruments that a security futures intermediary may accept from a customer as margin for security futures positions held in a futures account. Consistent with SEC Regulation 242.404(b) 33 and CFTC Regulation 41.46(b), 34 acceptable types of margin are limited to deposits of cash, margin securities (subject to specified restrictions), exempted securities, any other assets permitted under Regulation T 35 of the Board of Governors of the Federal Reserve System to satisfy a margin deficiency in a securities margin account, and any combination of the foregoing. Proposed Regulation 431.08(a) further provides that the different types of eligible margin deposits are to be valued in accordance with the applicable principles set forth in SEC Regulations 242.404(c) and 242.404(e) 36 and CFTC Regulations 41.46(c) and 41.46(e). 37 33 17 CFR 242.404(b). 34 17 CFR 41.46(b). 35 2 CFR 220.1 *et seq.* 36 17 CFR 242.404(c) and 242.404(e). 37 17 CFR 41.46(c) and 41.46(e). Proposed Regulation 431.08(d) requires a security futures intermediary to take the deduction required with respect to an undermargined account in computing its net capital under applicable SEC and CFTC Regulations if the customer has failed to comply with a required margin call within a reasonable period of time. This requirement is consistent with SEC Regulation 242.406(a) 38 and CFTC Regulation 41.48(a). 39 Further, proposed Regulation 431.08(e) requires the liquidation of an account in which security futures are held where there is a liquidating deficit, in accordance with SEC Regulation 242.406(b) 40 and CFTC Regulation 41.48(b). 41 38 17 CFR 242.406(a). 39 17 CFR 41.48(a). 40 17 CFR 242.406(b). 41 17 CFR 41.48(b). The Exchange Act Regulations and related provisions of the Exchange Act are premised on each self-regulatory organization adopting margin requirements that are functionally equivalent to proposed CBOT Regulations 431.07 and 431.08. Accordingly, proposed Regulations 431.07 and 431.08 represent a corollary of, and are designed to give effect to, the Exchange Act Regulations and related provisions of the Exchange Act. B. Self-Regulatory Organization's Statement on Burden on Competition The CBOT does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others The Exchange has neither solicited nor received written comments on the proposed rule change. III. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Exchange Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission's Internet comment form ( *http://www.sec.gov/rules/sro.shtml* ); or • Send e-mail to *rule-comments@sec.gov.* Please include File Number SR-CBOT-2006-01 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-CBOT-2006-01. This file number should be included on the subject line if e-mail is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site ( *http://www.sec.gov/rules/sro/shtml* ). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for inspection and copying in the Commission's Public Reference Room. Copies of such filing also will be available for inspection and copying at the principal office of the 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 submission should refer to File Number SR-CBOT-2006-01 and should be submitted on or before May 8, 2006. IV. Commission Findings and Order Granting Accelerated Approval of a Proposed Rule Change The Commission finds that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange. 42 In particular, the Commission finds that the proposed rule change is consistent with the requirements of Section 6(b)(5) of the Act, 43 which requires, among other things, that the rules of the Exchange be designed to promote just and equitable principles of trade and, in general, to protect investors and the public interest. In addition, the Commission believes that the proposed rule change is consistent with Section 7(c)(2)(B) of the Act, 44 which provides, among other things, that the margin requirements for security futures must preserve the financial integrity of markets trading security futures and prevent systemic risk. The Commission also believes that the proposed rule change is consistent with the customer margin rules set forth in Rules 400 through 406 under the Act. 45 42 In approving this proposal, the Commission has considered its impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). 43 15 U.S.C. 78f(b)(5). 44 15 U.S.C. 78g(c)(2)(B). 45 17 CFR 242.400-406. The Exchange has requested that the Commission approve this proposed rule change prior to the thirtieth day after publication of notice of the filing in the **Federal Register** . The Commission believes that nothing in this proposed rule change raises any new, unique, or substantive issues from those previously raised in SR-OC-2002-01, as amended, and SR-CME-2002-01, as amended 46 which rule filings set forth OneChicago's and the Chicago Mercantile Exchange's (“CME”) margin requirements for security futures, respectively. The Exchange's proposed rules set forth herein are substantively identical to the parallel provisions in OneChicago Rule 515 and CME Rule 930. The Exchange noted that that OneChicago Rule 515(a) specifies that its market maker exclusion applies to security futures positions held in securities accounts, as well as those held in futures accounts. The proposed margin rules only address security futures positions held in futures accounts. Further, the offsets proposed by CBOT are consistent with the strategy-based offsets permitted for comparable offset positions involving exchange-traded options and therefore consistent with Section 7(c)(2)(B) of the Exchange Act. 47 Finally, approval of the proposed rule change is necessary for CBOT to begin trading security futures. 46 *See also* SR-CME-2003-01 (approving, on a permanent basis, a standard under which a market maker can qualify for exclusion from CME's margin rules). 47 15 U.S.C. 78g(c)(2)(B). Accordingly, the Commission finds good cause for approving this proposed rule change prior to the thirtieth day after the date of publication of notice thereof in the **Federal Register** . Specifically, the Commission believes that it is consistent with Section 19(b)(2) of the Act 48 to approve the Exchange's proposed rule change prior to the thirtieth day after publication of the notice of filing thereof in the **Federal Register** . 48 15 U.S.C. 78s(b)(2). V. Conclusion *It is therefore ordered* , pursuant to Section 19(b)(2) of the Act, 49 that the proposed rule change (File No. SR-CBOT-2006-01) is approved on an accelerated basis. 49 *Id.* For the Commission, by the Division of Market Regulation, pursuant to delegated authority. 50 50 17 CFR 200.30-3(a)(12). Nancy M. Morris, Secretary. [FR Doc. E6-5650 Filed 4-14-06; 8:45 am] BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-53610; File No. SR-PCX-2006-12] Self-Regulatory Organizations; Pacific Exchange, Inc. (n/k/a NYSE Arca, Inc.); Order Granting Approval of Proposed Rule Change Relating to Clearly Erroneous Executions April 6, 2006. On February 23, 2006, the Pacific Exchange, Inc. (n/k/a NYSE Arca, Inc.) (“Exchange”) 1 filed with the Securities and Exchange Commission (“Commission”) a proposed rule change pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”), 2 and Rule 19b-4 thereunder, 3 to amend PCX Equities, Inc. (n/k/a NYSE Arca Equities, Inc.) (“NYSE Arca Equities”) Rule 7.10(e) pertaining to clearly erroneous executions of securities issued in initial public offerings (“IPOs”). The proposed rule change was published for comment in the **Federal Register** on March 3, 2006. 4 The Commission received no comments on the proposal. This order approves the proposed rule change. 1 On March 6, 2006, the Exchange filed with the Commission a proposed rule change, which was effective upon filing, to change the name of the Exchange, as well as several other related entities, to reflect the recent acquisition of PCX by Archipelago Holdings, Inc. (“Archipelago”) and the merger of NYSE with Archipelago. *See* File No. SR-PCX-2006-24. All references herein have been changed to reflect the aforementioned rule change. 2 15 U.S.C. 78s(b)(1). 3 17 CFR 240.19b-4. 4 *See* Securities Exchange Act Release No. 53376 (February 27, 2006), 71 FR 11008 (“Notice”). The proposed rule change would revise the procedures in NYSE Arca Equities Rule 7.10(e) relating to trade nullifications (“busts”) and price adjustments (“adjusts”) of the initial trade of securities issued in IPOs that are traded on the Archipelago Exchange (n/k/a NYSE Arca Marketplace) on an unlisted trading privileges basis. Currently, initial trades on NYSE Arca Marketplace of these securities that are executed at prices of $1.00 or 10% (whichever is lesser) away from the primary listing exchange's opening price are automatically busted or adjusted to the opening price of the security on the primary listing exchange. Under the proposed rule change, NYSE Arca Equities staff would have the discretion to bust or adjust initial trades in IPO securities that are executed at $1.00 or 10% (whichever is lesser) away from the opening price on the primary listing exchange. The Exchange states that this discretion is necessary because the primary listing exchange often has multiple prices for an IPO security during the first moments that the IPO security begins to trade. The Commission finds that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange. 5 In particular, the Commission believes that the proposal is consistent with section 6(b)(5) of the Act, 6 which requires that the rules of an exchange be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, and to remove impediments to and perfect the mechanism of a free and open market and a national market system. 5 In approving this proposal, the Commission has considered its impact on efficiency, competition, and capital formation. *See* 15 U.S.C. 78c(f). 6 15 U.S.C. 78f(b)(5). The Commission believes that the proposed rule change, by granting NYSE Arca Equities staff the discretion to bust or adjust initial trades for IPO securities that are executed at $1.00 or 10% (whichever is lesser) away from the primary listed exchange's opening price, and thus no longer require NYSE Arca Equities staff to automatically bust or adjust such trades, is designed to help ensure that the Exchange's clearly erroneous execution rule is exercised in a fair and reasonable manner. As the Exchange noted, the primary listing exchange's opening price for an IPO security may not necessarily be indicative of the actual trading price of the security, and, thus the Commission believes that it is fair and reasonable for NYSE Arca Equities staff to have the discretion to review all prices at the time the IPO security first trades on the primary listing exchange to determine whether it is appropriate to adjust or bust the trade at issue. *It is therefore ordered,* pursuant to section 19(b)(2) of the Act, 7 that the proposed rule change (SR-PCX-2006-12) is approved. 7 15 U.S.C. 78s(b)(2). For the Commission, by the Division of Market Regulation, pursuant to delegated authority. 8 8 17 CFR 200.30-3(a)(12). Nancy M. Morris, Secretary. [FR Doc. E6-5609 Filed 4-14-06; 8:45 am] BILLING CODE 8010-01-P SMALL BUSINESS ADMINISTRATION [Disaster Declaration # 10442 and # 10443] Missouri Disaster #MO-00003 AGENCY: U.S. Small Business Administration. ACTION: Notice. SUMMARY: This is a Notice of the Presidential declaration of a major disaster for the State of Missouri (FEMA-1635-DR), dated 04/05/2006. *Incident:* Severe Storms, Tornadoes, and Flooding. *Incident Period:* 03/30/2006 through 04/03/2006. *Effective Date:* 04/05/2006. *Physical Loan Application Deadline Date:* 06/05/2006. *Economic Injury

(EIDL)Loan Application Deadline Date:* 01/05/2007. ADDRESSES: Submit completed loan applications to: U.S. Small Business Administration, National Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155. FOR FURTHER INFORMATION CONTACT: A. Escobar, Office of Disaster Assistance, U.S. Small Business Administration, 409 3rd Street, SW., Suite 6050, Washington, DC 20416. SUPPLEMENTARY INFORMATION: Notice is hereby given that as a result of the President's major disaster declaration on 04/05/2006, applications for disaster loans may be filed at the address listed above or other locally announced locations. The following areas have been determined to be adversely affected by the disaster: Primary Counties (Physical Damage and Economic Injury Loans): Pemiscot. Contiguous Counties (Economic Injury Loans Only): Missouri: Dunklin, New Madrid. Arkansas: Mississippi, Tennessee: Dyer, Lake. The Interest Rates are: Percent *For Physical Damage:* Homeowners With Credit Available Elsewhere 5.750 Homeowners Without Credit Available Elsewhere 2.875 Businesses With Credit Available Elsewhere 7.408 Other (Including Non-Profit Organizations) With Credit Available Elsewhere 5.000 Businesses and Non-Profit Organizations Without Credit Available Elsewhere 4.000 *For Economic Injury:* Businesses and Small Agricultural Cooperatives Without Credit Available Elsewhere 4.000 The number assigned to this disaster for physical damage is 10442 C and for economic injury is 10443 0. (Catalog of Federal Domestic Assistance Numbers 59002 and 59008) Cheri L. Cannon, Acting Associate Administrator for Disaster Assistance. [FR Doc. E6-5640 Filed 4-14-06; 8:45 am] BILLING CODE 8025-01-P SMALL BUSINESS ADMINISTRATION [Disaster Declaration # 10440 and # 10441] Tennessee Disaster # TN-00008 AGENCY: U.S. Small Business Administration. ACTION: Notice. SUMMARY: This is a Notice of the Presidential declaration of a major disaster for the State of Tennessee (FEMA-1634-DR), dated 04/05/2006. *Incident:* Tornadoes and Severe Storms. *Incident Period:* 04/02/2006 through 04/03/2006. *Effective Date:* 04/05/2006. *Physical Loan Application Deadline Date:* 06/05/2006. *Economic Injury

(EIDL)Loan Application Deadline Date:* 01/05/2007. ADDRESSES: Submit completed loan applications to: U.S. Small Business Administration, National Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155. FOR FURTHER INFORMATION CONTACT: A. Escobar, Office of Disaster Assistance, U.S. Small Business Administration, 409 3rd Street, SW., Suite 6050, Washington, DC 20416. SUPPLEMENTARY INFORMATION: Notice is hereby given that as a result of the President's major disaster declaration on 04/05/2006, applications for disaster loans may be filed at the address listed above or other locally announced locations. The following areas have been determined to be adversely affected by the disaster: Primary Counties (Physical Damage and Economic Injury Loans): Dyer, Gibson. Contiguous Counties (Economic Injury Loans Only): Tennessee: Carroll, Crockett, Lake, Lauderdale, Madison, Obion, Weakley. Arkansas: Mississippi. Missouri: Pemiscot. The Interest Rates are: Percent *For Physical Damage:* Homeowners With Credit Available Elsewhere 5.750 Homeowners Without Credit Available Elsewhere 2.875 Businesses With Credit Available Elsewhere 7.408 Other (Including Non-Profit Organizations) With Credit Available Elsewhere 5.000 Businesses and Non-Profit Organizations Without Credit Available Elsewhere 4.000 *For Economic Injury:* Businesses and Small Agricultural Cooperatives Without Credit Available Elsewhere 4.000 The number assigned to this declaration for physical damage is 10440 C and for economic injury is 10441 0. (Catalog of Federal Domestic Assistance Numbers 59002 and 59008) Cheri L. Cannon, Acting Associate Administrator for Disaster Assistance. [FR Doc. E6-5641 Filed 4-14-06; 8:45 am] BILLING CODE 8025-01-P DEPARTMENT OF STATE [Public Notice 5375] U.S. National Commission for UNESCO Notice of Open Teleconference Meeting The U.S. National Commission for UNESCO will meet via telephone conference on Thursday, April 27, 2006, from 10 a.m. until 11 a.m. eastern time. The purpose of the teleconference meeting is to consider the recommendations of the Commission's Subcommittee on the UNITWIN/UNESCO Chairs Programme. The Subcommittee was asked to review U.S. applications for the Chairs program, which seeks to foster cooperation between universities in different countries and to promote academic solidarity and the transfer of knowledge. The Commission may also discuss the Library of Congress's World Digital Library initiative. More information on the National Commission can be found at *http://www.state.gov/p/io/unesco.* The Commission will accept brief oral comments during a portion of this conference call. Members of the public who wish to present oral comments or to listen to the conference call must make arrangements with the Executive Secretariat of the National Commission by 12 p.m. on April 26, 2006. For more information or to arrange to participate in the teleconference meeting, contact Alex Zemek, Deputy Executive Director of the U.S. National Commission for UNESCO, Washington, DC 20037. Telephone:

(202)663-0026; Fax:

(202)663-0035; E-mail: *DCUNESCO@state.gov.* Dated: April 11, 2006. Alex Zemek, Deputy Executive Secretary, U.S. National Commission for UNESCO, Department of State. [FR Doc. E6-5661 Filed 4-14-06; 8:45 am] BILLING CODE 4710-19-P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration Revised Noise Exposure Maps Baltimore/Washington International Thurgood Marshall Airport AGENCY: Federal Aviation Administration (FAA), DOT. ACTION: Notice. SUMMARY: The Federal Aviation Administration

(FAA)announces its determination that the revised noise exposure maps submitted by the Maryland Aviation Administration for Baltimore/Washington International Thurgood Marshall Airport under the provisions of Title I of the Aviation Safety and Noise Abatement Act of 1979 (Pub. L. 96-193) and CFR part 150 are in compliance with applicable requirements. DATES: *Effective Date:* The effective date of the FAA's determination on the noise exposure maps is April 3, 2006. FOR FURTHER INFORMATION CONTACT: Andrew Brooks, Federal Aviation Administration Eastern Region Office, 1 Aviation Plaza, Jamaica, NY 11434,

(718)553-3356. SUPPLEMENTARY INFORMATION: This notice announces that the FAA finds that the noise exposure maps submitted for Baltimore/Washington International Thurgood Marshall Airport are in compliance with applicable requirements of part 150, effective April 3, 2006. Under section 103 of the Aviation Safety and Noise Abatement Act of 1979 (hereinafter referred to as “the Act”), an airport operator may submit to the FAA noise exposure maps which meet applicable regulations and which depict non-compatible land uses as of the date of submission of such maps, a description of projected aircraft operations, and the ways in which such operations will affect such maps. The Act requires such maps to be developed in consultation with interested and affected parties in the local community, government agencies, and persons using the airport. An airport operator who has submitted noise exposure maps that are found by FAA to be in compliance with the requirements of Federal Aviation Regulations

(FAR)part 150, promulgated pursuant to Title I of the Act, may submit a noise compatibility program for FAA approval which sets for the measures the operator has taken or proposes for the reduction of existing non-compatible uses and for the prevention of the introduction of additional non-compatible uses. The FAA has completed its review of the noise exposure maps and related descriptions submitted by the Maryland Aviation Administration. The specific maps under consideration are the noise exposure maps identified as Figure 16 (Basecase 2003 DNL Contours) and Figure 17 (Forecast 2010 DNL Contours) in the submission. The FAA has determined that these maps for Baltimore/Washington International Thurgood Marshall Airport are in compliance with applicable requirements. This determination is effective on April 3, 2006. FAA's determination on an airport operator's noise exposure maps is limited to a finding that the maps were developed in accordance with the procedures contained in appendix A of FAR part 150. Such determination does not constitute approval of the applicant's data, information or plans, or a commitment to approve a noise compatibility program or to find the implementation of that program. If questions arise concerning the precise relationship of specific properties to noise exposure contours depicted on a noise exposure map submitted under section 103 of the Act, it should be noted that the FAA is not involved in any way in determining the relative locations of specific properties with regard to the depicted noise contours, or in interpreting locations of specific properties with regard to the depicted noise contours, or in interpreting the noise exposure maps to resolve questions concerning, for example, which properties should be covered by the provisions of section 107 of the Act. These functions are inseparable from the ultimate land use control and planning responsibilities of local government. These local responsibilities are not changed in any way under part 150 or through FAA's review of noise exposure maps. Therefore, the responsibility for the detailed overlaying of noise exposure contours onto the map depicting properties on the surface rests exclusively with the airport operator which submitted those maps, or with those public agencies and planning agencies with which consultation is required under section 103 of the Act. The FAA has relied on the certification by the airport operator, under section 150.21 of FAR part 150, that the statutorily required consultation has been accomplished. Copies of the noise exposure maps and of the FAA's evaluation of the maps are available for examination at the following locations: Federal Aviation Administration, Washington Airports District Office, 23723 Air Freight Lane, Suite 210, Dulles, VA 20166. Maryland Aviation Administration, Noise and Land Use Compatibility Planning, 991 Corporate Boulevard, Linthicum, MD 21090. Questions may be directed to the individual named above under the heading FOR FURTHER INFORMATION CONTACT . Issued on April 3, 2006 in Jamaica, NY. William J. Flanagan, Manager, Airports Division, Eastern Region. [FR Doc. 06-3624 Filed 4-14-06; 8:45 am]

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