Notices. Notice of Action Subject to Intergovernmental Review Under Executive Order 12372

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BILLING CODE 8010-01-M SECURITIES AND EXCHANGE COMMISSION [Release No. 34-54101; File No. SR-NASD-2005-140] Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Order Approving a Proposed Rule Change and Amendments No. 1 and 2 Regarding the Nasdaq Crossing Network July 5, 2006. I. Introduction On December 2, 2005, the National Association of Securities Dealers, Inc. (“NASD”), through its subsidiary, The Nasdaq Stock Market, Inc. (“Nasdaq”), filed with the Securities and Exchange Commission (“Commission”), pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 (“ Exchange Act”) 1 and Rule 19b-4 thereunder, 2 a proposed rule change to establish the Nasdaq Crossing Network.

On February 28, 2006, Nasdaq filed Amendment No. 1 to the proposed rule change. 3 On April 24, 2006, Nasdaq filed Amendment No. 2 to the proposed rule change. 4 The proposed rule change, as amended, was published for comment in the **Federal Register** on May 5, 2006. 5 The Commission received no comments on the proposal. This order approves the proposed rule change, as amended. 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b-4. 3 Amendment No. 1 replaced and superseded the original filing in its entirety. 4 In Amendment No. 2, Nasdaq made certain representations related to the applicability of Rule 11a2-2(T) under the Exchange Act and NASD IM-2110-2 (the “Manning Rule”) to the proposed rule change.

In addition, Nasdaq indicated its plan to request exemptive relief from Rule 10a-1 under the Exchange Act and NASD Rule 3350 (“Short Sale Rule”), as well as from Rule 602 of Regulation NMS (“Quote Rule”). Nasdaq also made clarifying edits to the proposed rule change. 5 *See* Securities Exchange Act Release No. 53745 (May 1, 2006), 71 FR 26579 (SR-NASD-2005-140) (“Proposing Release”). II. Description Nasdaq proposes to establish the Nasdaq Crossing Network for Nasdaq-listed and certain exchange-listed securities.

The Nasdaq Crossing Network would provide a process for executing orders at a uniform reference price at a randomly selected point in time during a one-minute trading window, commencing at designated times during the regular hours session and the after-hours session. The trading windows would begin at 11 a.m., 1 p.m., and 3 p.m.

(ET)during the regular hours session and at 4:30 p.m.

(ET)during the after-hours session. For the series of Nasdaq Reference Price Crosses (“RPCs”) that occur during regular trading hours, market participants would place orders to be executed at the midpoint of the National Best Bid and Offer (“NBBO”). During the after-hours crossing session, eligible orders would be executed at the Nasdaq Official Closing Price (“NOCP”) for Nasdaq-listed securities or the official closing price of the primary market for securities listed on the NYSE, Amex or a regional exchange (“Primary Market Close”). Orders Orders entered into the Nasdaq Crossing Network would be either market or limit orders and would be designated by a time-in-force indicator. 6 These orders would not be displayed and would be executed only during an RPC. In addition, RPC orders would be entered in round lots only; no mixed or odd lot execution amount would be permitted. Orders may not be cancelled or replaced during the time of the cross, but they may be cancelled or replaced at any time before the cross occurs. Also, RPC orders would be required to be available for automatic execution. The RPC would have no order delivery capability, and no special orders could be accommodated. 6 RPC orders would be marked with one of the following:

(1)“ NXT,” which indicates that the order would participate in the next scheduled regular-hours cross, with unexecuted shares being immediately cancelled back to the market participant after that cross;

(2)“REG,” which indicates that the order would participate in all remaining crosses during the trading day with unexecuted shares being immediately cancelled back to the market participant after the final regular hours cross; or

(3)“ALX,” which indicates that the order would participate in all remaining crosses in the current day with unexecuted shares immediately cancelled back to the market participant after the after-hours cross. Nasdaq Reference Price Cross Priority and Reporting Upon initiation of the cross, available shares would be treated as if they were the same price and would be allocated on a pro-rata basis to eligible orders. Such shares would be allocated based on the original size of the order, not on the size of the remaining unexecuted portion of the order. If additional shares remain after the initial pro-rata allocation, those shares would continue to be allocated pro-rata to eligible orders until a number of round lots remain that is less than the number of eligible orders. Any remaining shares would be allocated to the oldest eligible order. 7 7 The Proposing Release provides an example that illustrates these priority principles. *See supra* note 5. The executions would be reported to the market participants via Nasdaq Market Center execution reports as anonymous, single trades reflecting the aggregate shares executed. In addition, each execution would be reported to the Nasdaq Market Center trade reporting service for trade reporting, clearance and settlement. 8 Trades from the regular hours cross would be disseminated the regular way, and trades from the post close cross would be disseminated with a “.PRP” sale condition modifier. 8 Nasdaq would submit each underlying trade to the National Securities Clearing Corporation for clearing. When Nasdaq becomes operational as a national securities exchange, these trades will be reported as “covered sales” of the exchange for the purposes of Section 31 of the Exchange Act. If the Crossing Network is launched before Nasdaq is operational as an exchange, the NASD will report these trades to NSCC for the purposes of Section 31 of the Exchange Act. Locked or Crossed Markets In the event of a crossed NBBO at the time of a RPC during the regular hours session, the RPC would be delayed and would execute based on the midpoint NBBO when the quote becomes uncrossed. If the quote remains crossed, however, for five minutes beyond when the RPC normally would have occurred, the RPC would be cancelled and orders that are not designated for any future RPCs would be returned to the market participants. In the event of a locked NBBO at the time of a RPC during the regular hours session, the RPC would execute at the lock price. Reference Price Cross Circuit Breaker Nasdaq would establish a “circuit breaker” for RPCs that occur during the after-hours session to protect against unusual occurrences when the consolidated last sale price varies significantly from the NOCP or the Primary Market Close, based on information that becomes available after the market close. If the post-close cross would not execute within a preset boundary (the “Threshold Percentage”), 9 the cross would not occur and be automatically cancelled by Nasdaq. 9 Initially, the Threshold Percentage would be set at ten percent, with a $0.50 difference between the NCOP or the Primary Market Close and the consolidated last sale price. Any changes to the Threshold Percentage would be made in advance of application and would be communicated to members. Nasdaq would publish any changes to the Threshold Percentage via its public NasdaqTrader Web site. III. Discussion The Commission finds that the proposed rule change is consistent with Section 15A of the Exchange Act 10 and the rules and regulations thereunder. 11 Specifically, the Commission finds the proposal to be consistent with Section 15A(b)(6) of the Exchange Act, 12 which requires the NASD's rules to be designed, among other things, to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, and are not designed to permit unfair discrimination between customers, issuers, brokers, or dealers. The Nasdaq Crossing Network would provide market participants and investors with an additional mechanism for order execution. The Commission, in relying on Nasdaq's representation that participation in the RPCs would be voluntary and open to all Nasdaq market participants and would not result in any advantage to market participants that participate in RPCs over those market participants that do not choose to participate, believes that the Nasdaq Crossing Network is not designed to permit unfair discrimination between customers, issuers, brokers, or dealers. 10 15 U.S.C. 78 *o* -3. 11 In approving this proposed rule change the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. *See* 15 U.S.C. 78c(f). 12 15 U.S.C. 78 *o* -3(b)(6). Nasdaq has proposed to execute RPC orders at a predetermined reference price at a randomly selected point in time during a one-minute trading window. The Commission notes that using the automated and random matching mechanism to execute an RPC cross should minimize the opportunity for manipulation. In addition, the Commission notes that, should Nasdaq desire to add more frequent crosses or to modify the time of the crosses in the future, it must submit a rule change to the Commission pursuant to 19(b) of the Exchange Act. 13 Because RPC orders that are executed during the regular hours session would be executed at the midpoint of the NBBO, it is possible that a Nasdaq member would trade ahead of a held customer order by less than $0.01 ( *i.e.* , $0.005). The Commission believes that such an event would trigger a Manning Rule obligation. 14 13 15 U.S.C. 78s. 14 *See supra* note 5. The Commission believes that the RPC is reasonably designed to promote just and equitable principles of trade. The Commission notes that any transaction on the Crossing Network effected in non-Nasdaq listed securities would be subject to the relevant short sale restrictions until Nasdaq requests and receives appropriate relief. 15 In addition, the Commission notes Nasdaq's representation that this proposed rule change will not alter the continued accuracy of the representations made by Nasdaq in the letter requesting interpretive guidance with respect to the application of Rule 11a2-2(T) under the Exchange Act that was submitted in connection with Nasdaq's application for registration as a national securities exchange. 16 15 *Id.* 16 *See* letter to Nancy M. Morris, Secretary, Commission, and Elizabeth King, Associate Director, Division of Market Regulation, Commission, from Edward S. Knight, Executive Vice President and General Counsel, Nasdaq, dated January 12, 2006. The “effect and execute” rule provides exchange members with an exemption from the prohibition in Section 11(a) of the Exchange Act against a member of a national securities exchange effecting transactions on that exchange for its own account, the account of an associated person, or an account over which it or its associated person exercises discretion unless an exception applies. In reliance on Nasdaq's representations in its letter, the Commission concluded in its order approving Nasdaq's exchange registration application that Nasdaq Exchange members that enter orders into Nasdaq Execution Systems satisfy the requirements of Rule 11a2-2(T) under the Exchange Act. *See* Securities Exchange Act Release No. 53128 (January 13, 2006), 71 FR 3550 (January 23, 2006) (File No. 10-131). IV. Conclusion *It is therefore ordered,* pursuant to Section 19(b)(2) of the Exchange Act, 17 that the proposed rule change (SR-NASD-2005-140), as amended by Amendments No. 1 and 2, be, and it hereby is, approved. 17 15 U.S.C. 78s(b)(2). For the Commission, by the Division of Market Regulation, pursuant to delegated authority. 18 18 17 CFR 200.30-3(a)(12). J. Lynn Taylor, Assistant Secretary. [FR Doc. E6-10923 Filed 7-11-06; 8:45 am] BILLING CODE 8010-01-P SMALL BUSINESS ADMINISTRATION Notice of Action Subject to Intergovernmental Review Under Executive Order 12372 AGENCY: U.S. Small Business Administration. ACTION: Notice of Action Subject to Intergovernmental Review Under Executive Order 12372. SUMMARY: The Small Business Administration

(SBA)is notifying the public that it intends to grant the pending applications of 22 existing Small Business Development Centers (SBDCs) for refunding on October 1, 2006, subject to the availability of funds. Six states do not participate in the EO 12372 process; therefore, their addresses are not included. A short description of the SBDC program follows in the supplementary information below. The SBA is publishing this notice at least 60 days before the expected refunding date. The SBDCs and their mailing addresses are listed below in the addresses section. A copy of this notice also is being furnished to the respective State single points of contact designated under the Executive Order. Each SBDC application must be consistent with any area-wide small business assistance plan adopted by a State-authorized agency. DATES: A State single point of contact and other interested State or local entities may submit written comments regarding an SBDC refunding within 30 days from the date of publication of this notice to the SBDC. ADDRESSES: Addresses of Relevant SBDC State Directors Mr. Al Salgado, Region Director, Univ. of Texas at San Antonio, 501 West Durango Blvd., San Antonio, TX 78207.

(210)458-2450. Mr. Conley Salyer, State Director, West Virginia Development Office, 950 Kanawha Boulevard, East Charleston, WV 25301.

(304)558-2960. Mr. Clinton Tymes, State Director, University of Delaware, One Innovation Way, Suite 301, Newark, DE 19711.

(302)831-2747. Ms. Carmen Marti, SBDC Director, Inter American University of Puerto Rico, Ponce de Leon Avenue, #416, Edificio Union Plaza, Seventh Floor, Hato Rey, PR 00918.

(787)763-6811. Mr. Michael Young, Region Director, University of Houston, 2302 Fannin, Suite 200, Houston, TX 77002.

(713)752-8425. Ms. Becky Naugle, State Director, University of Kentucky, 225 Gatton College of Business Economics, Lexington, KY 40506-0034.

(859)257-7668. Ms. Liz Klimback, Region Director, Dallas Community College, 1402 Corinth Street, Dallas, TX 75212.

(214)860-5835. Ms. Rene Sprow, State Director, Univ. of Maryland @ College Park, 7100 Baltimore Avenue, Suite 401, Baltimore, MD 20742-1815.

(301)403-8300. Mr. Craig Bean, Region Director, Texas Tech University, 2579 South Loop 289, Suite 114, Lubbock, TX 79423-1637.

(806)745-3973. Ms. Debbie Popp, Acting State Director, University of Wyoming, P.O. Box 3922, Laramie, WY 82071.

(307)766-3505. Mr. Max Summers, State Director, University of Missouri, 1205 University Avenue, Suite 300, Columbia, MO 65211.

(573)882-1348. Mr. Jon Ryan, State Director, Iowa State University, 340 Gerdin Business Building, Ames, IA 50011-1350.

(515)294-2037. Mr. James L. King, State Director, State University of New York, Corporate Woods Building, Albany, NY 12246.

(518)641-0613. Ms. Michele Abraham, State Director, Ohio Department of Development, 77 South High Street, 28th Floor, Columbus, OH 43216-1001.

(614)466-5102. Ms. Lenae Quillen-Blume, State Director, Vermont Technical College, P.O. Box 188, Randolph Center, VT 05061-0188.

(802)728-9101. Mr. Warren Bush, SBDC Director, University of the Virgin Islands, 8000 Nisky Center, Suite 720, St. Thomas, U.S. VI 00802-5804.

(340)776-3206. FOR FURTHER INFORMATION CONTACT: Antonio Doss, Associate Administrator for SBDCs, U.S. Small Business Administration, 409 Third Street, SW., Sixth Floor, Washington, DC 20416. SUPPLEMENTARY INFORMATION: Description of the SBDC Program A partnership exists between SBA and an SBDC. SBDCs offer training, counseling and other business development assistance to small businesses. Each SBDC provides services under a negotiated Cooperative Agreement with SBA, the general management and oversight of SBA, and a state plan initially approved by the Governor. Non-Federal funds must match Federal funds. An SBDC must operate according to law, the Cooperative Agreement, SBA's regulations, the annual Program Announcement, and program guidance. Program Objectives The SBDC program uses Federal funds to leverage the resources of states, academic institutions and the private sector to:

(a)Strengthen the small business community;

(b)Increase economic growth;

(c)Assist more small businesses; and

(d)Broaden the delivery system to more small businesses. SBDC Program Organization The lead SBDC operates a statewide or regional network of SBDC service centers. An SBDC must have a full-time Director. SBDCs must use at least 80 percent of the Federal funds to provide services to small businesses. SBDCs use volunteers and other low cost resources as much as possible. SBDC Services An SBDC must have a full range of business development and technical assistance services in its area of operations, depending upon local needs, SBA priorities and SBDC program objectives. Services include training and counseling to existing and prospective small business owners in management, marketing, finance, operations, planning, taxes, and any other general or technical area of assistance that supports small business growth. The SBA district office and the SBDC must agree upon the specific mix of services. They should give particular attention to SBA's priority and special emphasis groups, including veterans, women, exporters, the disabled, and minorities. SBDC Program Requirements An SBDC must meet programmatic and financial requirements imposed by statute, regulations or its Cooperative Agreement. The SBDC must:

(a)Locate service centers so that they are as accessible as possible to small businesses;

(b)Open all service centers at least 40 hours per week, or during the normal business hours of its state or academic Host Organization, throughout the year;

(c)Develop working relationships with financial institutions, the investment community, professional associations, private consultants and small business groups; and

(d)Maintain lists of private consultants at each service center. Dated: June 29, 2006. Antonio Doss, Associate Administrator for Small Business Development Centers. [FR Doc. E6-10872 Filed 7-11-06; 8:45 am] BILLING CODE 8025-01-P SMALL BUSINESS ADMINISTRATION Public Federal Regulatory Enforcement Fairness Hearing U.S. Small Business Administration Region IX Regulatory Fairness Board The U.S. Small Business Administration

(SBA)Region IX Regulatory Fairness Board and the SBA Office of the National Ombudsman will hold a public hearing on Thursday, July 20, 2006, at 9 a.m. The meeting will take place at the San Diego Unified Port District, Don L. Nay Port Administration Building, 3165 Pacific Highway, San Diego, CA 92101-3500. The purpose of the meeting is to receive comments and testimony from small business owners, small government entities, and small non-profit organizations concerning regulatory enforcement and compliance actions taken by Federal agencies. Anyone wishing to attend or to make a presentation must contact Cynthia Harris, in writing or by fax, in order to be put on the agenda. Cynthia Harris, Public Information Officer, SBA, 550 West C Street, Suite 550, San Diego, CA 92101-3500, phone

(619)557-7250, Ext. 1155 and fax

(619)557-5894, e-mail: *Cynthia.harris@sba.gov.* For more information, see our Web site at *http://www.sba.gov/ombudsman.* Matthew K. Becker, Committee Management Officer. [FR Doc. E6-10887 Filed 7-11-06; 8:45 am] BILLING CODE 8025-01-P DEPARTMENT OF TRANSPORTATION Office of the Secretary [Docket No. OST-2006-24502] Notice of Request for Information Collection Approval AGENCY: Office of the Secretary, Department of Transportation. ACTION: Notice. SUMMARY: In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.), this notice announces that the Information Collection Request abstracted below has been forwarded to the Office of Management and Budget

(OMB)for approval. The ICR describes the nature of the information collection and its expected cost and burden. The **Federal Register** Notice with a 60-day comment period soliciting comments on the following collection of information was published on April 19, 2006, [FR Vol. 71, No. 75, page 20154]. No comments were received. DATE: Comments on this notice must be received by August 11, 2006: attention DOT/OST Desk Officer, Office of Information and Regulatory Affairs, Office of Management and Budget, Docket Library, Room 10102, 725 17th Street, NW., Washington, DC 20503. FOR FURTHER INFORMATION CONTACT: Ms. Aloha Ley, Office of Aviation Analysis, X-50, Office of the Secretary, U.S. Department of Transportation, 400 Seventh Street, SW., Washington, DC 20590,

(202)366-2347. SUPPLEMENTARY INFORMATION: *Titles:*

(1)Application for Small Community Air Service Development Program Grant;

(2)Enplanement Data form;

(3)Final Report form; and

(4)Grant Reimbursement form. *OMB Numbers:* Existing Collection without prior OMB authorization *Affected Public:* Small communities/airports seeking financial grants to improve their air service and grant recipients under the Small Community Air Service Development Program. *Total Annual Estimated Burden:* 13,200 hours. This consists of a maximum of 8,000 hours for the filing of applications; 480 hours for enplanement reports; 400 hours for the filing of final reports; and 4,320 for reimbursement requests. *Comments are invited on:*

(a)Whether the proposed collection of information is reasonable for the proper administration of the Small Community Air Service Development Program by the Department, and

(b)the accuracy of the Department's estimate of burden of the described information collection. Issued in Washington, DC, on July 6, 2006. Steven B. Lott, Manager, Strategic Integration, IT Investment Management Office. [FR Doc. E6-10918 Filed 7-11-06; 8:45 am] BILLING CODE 4910-62-P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration Notice of Intent To Rule on Request To Release Airport Property at Aransas County Airport, Rockport, TX AGENCY: Federal Aviation Administration (FAA), DOT. ACTION: Notice of request to release airport property. SUMMARY: The FAA proposes to rule and invites public comment on the release of land at the Aransas County Airport under the provisions of section 125 of the Wendell H. Ford Aviation Investment Reform Act for the 21st Century (AIR 21). DATES: Comments must be received on or before August 11, 2006. ADDRESSES: Comments on this application may be mailed or delivered to the FAA at the following address: Mr. Mike Nicely, Manager, Federal Aviation Administration, Southwest Region, Airports Division, Texas Airports Development Office, ASW-650, Fort Worth, Texas 76193-0650. In addition, one copy of any comments submitted to the FAA must be mailed or delivered to the Honorable Glenn D. Guillory, Aransas County Judge, at the following address: Aransas County Judge, 301 North Live Oak, Rockport, Texas 78383. FOR FURTHER INFORMATION CONTACT: Mr. Rodney Clark, Program Manager, Federal Aviation Administration, Texas Airports Development Office, ASW-650, 2601 Meacham Boulevard, Fort Worth, Texas 76193-0650, Telephone:

(817)222-5659, e-mail: *rodney.clark@faa.gov* , fax:

(817)222-5989. The request to release property may be reviewed in person at this same location. SUPPLEMENTARY INFORMATION: The FAA invites public comment on the request to release property at Aransas County Airport under the provisions of the AIR 21. On May 9, 2006, the FAA determined that the request to release property at Aransas County Airport, submitted by the State, met the procedural requirements of the Federal Aviation Regulations, Part 155. The following is a brief overview of the request: The County of Aransas requests the release of 8.75 acres of non-aeronautical use airport property. The land was part of a transfer from the Federal government via the Surplus Property Act of 1944. The funds generated by the release will be used for upgrading, maintenance, operation and development of the airport. Any person may inspect the request in person at the FAA office listed above under FOR FURTHER INFORMATION CONTACT . In addition, any person may, upon request, inspect the application, notice and other documents relevant to the application in person at the Aransas County Airport in Rockport, Texas, telephone number 361-790-0141. Issued in Fort Worth, Texas on June 27, 2006. Kelvin Solco, Manager, Airports Division. [FR Doc. 06-6142 Filed 7-11-06; 8:45 am]

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