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Code · REGISTER · 2006-09-05 · SECURITIES AND EXCHANGE COMMISSION · Notices

Notices. Notice of Reporting Requirements Submitted for OMB Review

16,819 words·~76 min read·/register/2006/09/05/06-7421

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

BILLING CODE 8010-01-M SECURITIES AND EXCHANGE COMMISSION [Release No. 34-54379; File No. SR-CBOE-2006-66] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Order Approving a Proposed Rule Change Regarding Market-Maker Appointments August 28, 2006. On July 11, 2006, the Chicago Board Options Exchange, Incorporated (“CBOE” or “Exchange”) filed with the Securities and Exchange Commission (“Commission”), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”) 1 and Rule 19b-4 thereunder, 2 a proposed rule change to amend CBOE Rule 8.3 to provide that in the event a Market-Maker is a nominee of a member organization or has registered the Market-Maker's membership for a member organization, the member organization with which the Market-Maker is associated would be permitted to request that the Exchange deem all class appointments be made to the member organization instead of to the individual Market-Maker. 3 In such a case, if an individual Market-Maker were no longer associated with a member organization, the class appointments would continue to be held by the member organization and not the individual Market-Maker.
In the event a member organization did not request that the class appointments be held by the member organization, a Market-Maker's class appointments would continue to be held in the name of the individual Market-Maker and not the member organization with which the Market-Maker is associated. The proposed rule change was published for comment in the **Federal Register** on July 27, 2006. 4 The Commission received no comments on the proposal. 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b-4. 3 If such a request is made by a member organization, CBOE would consider that the submission of electronic quotations and orders would be made by and on behalf of the member organization with which the individual Market-Maker is associated.
However, CBOE proposes that CBOE Rule 8.3 would state that the individual Market-Maker would continue to have all of the obligations of a Market-Maker under Exchange rules in these circumstances. 4 *See* Securities Exchange Act Release No. 54184 (July 20, 2006), 71 FR 42690. 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 and, in particular, the requirements of Section 6 of the Act 6 and the rules and regulations thereunder.
The Commission specifically finds that the proposed rule change is consistent with Section 6(b)(5) of the Act 7 in that it is 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 believes that the proposal should provide more flexibility to Market-Maker organizations in structuring class appointments. 5 In approving this proposed rule change, the Commission notes that it has considered the proposed rule's impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). 6 15 U.S.C. 78f. 7 15 U.S.C. 78f(b)(5). *It is therefore ordered* , pursuant to Section 19(b)(2) of the Act, 8 that the proposed rule change (SR-CBOE-2006-66) is approved. 8 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Market Regulation, pursuant to delegated authority. 9 9 17 CFR 200.30-3(a)(12). Nancy M. Morris, Secretary. [FR Doc. E6-14597 Filed 9-1-06; 8:45 am] BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-54378; File No. SR-NASDAQ-2006-032] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing of Proposed Rule Change and Amendment No. 1 Thereto To Revise The Nasdaq Capital Market Listing Requirements EFFECTIVE DATE:
August 28, 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 August 23, 2006, The NASDAQ Stock Market LLC (“Nasdaq”), filed with the Securities and Exchange Commission (“Commission”) the proposed rule change as described in Items I, II, and III below, which Items have been prepared by Nasdaq. On August 28, 2006, Nasdaq filed Amendment No. 1 to the proposed rule change. 3 The Commission is publishing this notice to solicit comments on the proposed rule change, as amended, from interested persons. 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b-4. 3 In Amendment No. 1, Nasdaq makes clarifying changes to the rule text in the Nasdaq Capital Market convertible debt listing standards.
Nasdaq also makes clarifying changes to the purpose section regarding convertible debt, rights and warrants, and non-Canadian foreign securities and American Depository Receipts. I. Self-Regulatory Organization's Statement of the Terms of the Substance of the Proposed Rule Change Nasdaq proposes to revise certain listing requirements applicable to the Nasdaq Capital Market. The text of the proposed rule change is below. Proposed new language is in *italics* ; proposed deletions are in [brackets]. 4 4 Changes are marked to the rule text that appears in the electronic manual of Nasdaq found at *http://www.complinet.com/nasdaq.* These rules became effective on August 1, 2006, when Nasdaq commenced operations as a national securities exchange for Nasdaq-listed securities.
The rule text incorporates changes made by Amendment No. 1. *See id.* 4200. Definitions.
(a)For purposes of the Rule 4000 Series, unless the context requires otherwise:
(1)No change.
(2)[Reserved
(3)Reserved (4)] “Best efforts offering” means an offering of securities by members of a selling group under an agreement which imposes no financial commitment on the members of such group to purchase any such securities except as they may elect to do so. [(5) Reserved
(6)“Cash available for distribution” means cash flow of a limited partnership less amount set aside for restoration or creation of reserves.] [(7)] *(3)* “Cash flow” means cash funds provided from limited partnership operations, including lease payments on net leases from builders and sellers, without deduction for depreciation, but after deducting cash funds used to pay all other expenses, debt payments, capital improvements and replacements. [(8)] *(4)* “Consolidated Quotations Service”
(CQS)means the consolidated quotation collection system for securities listed on an exchange other than Nasdaq implementing SEC Rule 602. [(9)] *(5)* “Country of Domicile” means the country under whose laws an issuer is organized or incorporated. *(6) “Covered security” means a security described in Section 18(b) of the Securities Act of 1933.* *(7) Reserved* *(8) Reserved* *(9) Reserved* (10)—(39) No change. (b)—(c) No change. 4310. Listing Requirements for Domestic and Canadian Securities To qualify for listing in Nasdaq, a security of a domestic or Canadian issuer shall satisfy all applicable requirements contained in paragraphs (a), (b), and
(c)hereof. Issuers that meet these requirements, but that are not listed on the Nasdaq Global Market, are listed on the Nasdaq Capital Market.
(a)No change.
(b)No change.
(c)In addition to the requirements contained in paragraph
(a)and
(b)above, and unless otherwise indicated, a security shall satisfy the following criteria for listing on Nasdaq:
(1)No change (2)[(A)] For initial listing, the issuer shall have *either* : *(A)*
(i)stockholders' equity of $5 million; *and* *(ii) a market value of publicly held shares of $15 million; and* *(iii) an operating history of at least two years; or* *(B)* [(ii)] *(i) stockholders' equity of $4 million; and* *(ii)* market value of listed securities of $50 million (currently traded issuers must meet this requirement and the bid price requirement under Rule 4310(c)(4) for 90 consecutive trading days prior to applying for listing); [or] *and* *(iii) a market value of publicly held shares of $15 million; or* *(C)* [(iii)] *(i) stockholders' equity of $4 million; and* *(ii)* net income from continuing operations of $750,000 in the most recently completed fiscal year or in two of the last three most recently completed fiscal years; *and* *(iii) a market value of publicly held shares of $5 million.* [(B)] *(3)* For continued listing, the issuer shall maintain *either:* *(A)* [(i)] stockholders' equity of $2.5 million; *or* *(B)* [(ii)] market value of listed securities of $35 million; *or* *(C)* [(iii)] net income from continuing operations of $500,000 in the most recently completed fiscal year or in two of the last three most recently completed fiscal years. [(3) For initial listing, the issuer shall have an operating history of at least one year or a market value of listed securities of $50 million.]
(4)No change.
(5)*(A)* In the case of a convertible debt security, for initial listing, there shall be a principal amount outstanding of at least $10 million. *(B) In addition, for the initial listing of convertible debt, one of the following conditions must be satisfied:* *(i) the issuer of the debt must have an equity security that is listed on Nasdaq, the American Stock Exchange or the New York Stock Exchange;* *(ii) an issuer whose equity security is listed on Nasdaq, the American Stock Exchange or the New York Stock Exchange, directly or indirectly owns a majority interest in, or is under common control with, the issuer of the debt security, or has guaranteed the debt security;* *(iii) a nationally recognized securities rating organization (an “NRSRO”) has assigned a current rating to the debt security that is no lower than an S&P Corporation “B” rating or equivalent rating by another NRSRO; or,* *(iv) if no NRSRO has assigned a rating to the issue, an NRSRO has currently assigned:
(1)an investment grade rating to an immediately senior issue; or
(2)a rating that is no lower than an S&P Corporation “B” rating, or an equivalent rating by another NRSRO, to a pari passu or junior issue.* *(C)* For continued listing *of a convertible debt security* , there shall be a principal amount outstanding of at least $5 million. (6)(A) In the case of common stock, *for initial and continued listing,* there shall be at least 300 round lot holders of the security.
(B)In the case of preferred stock and secondary classes of common stock, *for initial and continued listing,* there shall be at least 100 round lot holders of the security, provided in each case that the issuer's common stock or common stock equivalent equity security [is] *must be* listed on [either] Nasdaq or [another national securities exchange] *be a covered security* . In the event the issuer's common stock or common stock equivalent security *either* is not listed on [either] Nasdaq or [another national securities exchange] *is not a covered security* , the preferred stock and/or secondary class of common stock may be listed on Nasdaq so long as the security satisfies the listing criteria for common stock.
(C)No change. (7)(A) In the case of common stock, there shall be at least 1,000,000 publicly held shares for initial listing and 500,000 publicly held shares for continued listing. For initial listing such shares shall have a market value [of at least $5 million] *as provided in the applicable provision of Rule 4310(c)(2)* . For continued listing such shares shall have a market value of at least $1 million.
(B)In the case of preferred stock and secondary classes of common stock, there shall be at least 200,000 publicly held shares having a market value of at least $[2] *3.5* million for initial listing and 100,000 publicly held shares having a market value of [$500,000] *$1 million* for continued listing. In addition, the issuer's common stock or common stock equivalent security must be listed on [either] Nasdaq or [another national securities exchange] *be a covered security* . In the event the issuer's common stock or common stock equivalent security *either* is not listed on [either] Nasdaq or [another national securities exchange] *is not a covered security* , the preferred stock and/or secondary class of common stock may be traded on Nasdaq so long as the security satisfies the listing criteria for common stock.
(C)Shares held directly or indirectly by any officer or director of the issuer and by any person who is the beneficial owner of more than 10 percent of the total shares outstanding are not considered to be publicly held.
(8)No change. (9)(A) In the case of rights and warrants, for initial listing only, there shall be at least [100,000] *400,000* issued and the underlying security [shall] *must* be listed on Nasdaq or [another national securities exchange] *be a covered security* . *For continued listing, the underlying security must remain listed on Nasdaq or be a covered security.*
(B)In the case of put warrants (that is, instruments that grant the holder the right to sell to the issuing company a specified number of shares of the Company's common stock, at a specified price until a specified period of time), for initial listing only, there shall be at least [100,000] *400,000* issued and the underlying security [shall] *must* be listed on Nasdaq or [another national securities exchange] *be a covered security* . *For continued listing, the underlying security must remain listed on Nasdaq or be a covered security.*
(C)No change. (10)-(30) No change.
(d)No change. 4320. Listing Requirements for Non-Canadian Foreign Securities and American Depositary Receipts To qualify for listing on Nasdaq, a security of a non-Canadian foreign issuer, an American Depositary Receipt
(ADR)or similar security issued in respect of a security of a foreign issuer shall satisfy the requirements of paragraphs (a), (b), and
(e)of this Rule. Issuers that meet these requirements, but that are not listed on the Nasdaq Global Market, are listed on the Nasdaq Capital Market. (a)-(d) No change.
(e)In addition to the requirements contained in paragraphs
(a)and (b), the security shall satisfy the criteria set out in this subsection for listing on Nasdaq. In the case of ADRs, the underlying security will be considered when determining the ADR's qualification for initial or continued listing on Nasdaq.
(1)No change. (2)(A) For initial listing, the issue shall *meet the requirements of Rule 4310(c)(2)(A),
(B)or (C).* [have a minimum bid price of $4 and the issuer shall have:
(i)stockholders' equity of U.S. $5 million;
(ii)market value of listed securities of U.S. $50 million (currently traded issuers must meet this requirement for 90 consecutive trading days prior to applying for listing); or
(iii)net income from continuing operations of U.S. $750,000 in the most recently completed fiscal year or in two of the last three most recently completed fiscal years.]
(B)For continued listing, the issuer shall *meet the requirements of Rule 4310(c)(3)(A),
(B)or (C).* [maintain:
(i)stockholders' equity of U.S. $2.5 million;
(ii)market value of listed securities of U.S. $35 million; or
(iii)net income from continuing operations of U.S. $500,000 in the most recently completed fiscal year or in two of the last three most recently completed fiscal years.]
(C)No change.
(D)No change.
(E)No change.
(3)*(A)* In the case of a convertible debt security, for initial listing, there shall be a principal amount outstanding of at least $10 million. *(B) In addition, for the initial listing of convertible debt, one of the following conditions must be satisfied:* *(i) the issuer of the debt must have an equity security that is listed on Nasdaq, the American Stock Exchange or the New York Stock Exchange;* *(ii) an issuer whose equity security is listed on Nasdaq, the American Stock Exchange or the New York Stock Exchange, directly or indirectly owns a majority interest in, or is under common control with, the issuer of the debt security, or has guaranteed the debt security;* *(iii) a nationally recognized securities rating organization (an “NRSRO”) has assigned a current rating to the debt security that is no lower than an S&P Corporation “B” rating or equivalent rating by another NRSRO; or,* *(iv) if no NRSRO has assigned a rating to the issue, an NRSRO has currently assigned:
(1)an investment grade rating to an immediately senior issue; or
(2)a rating that is no lower than an S&P Corporation “B” rating, or an equivalent rating by another NRSRO, to a pari passu or junior issue.* *(C)* For continued listing *of a convertible debt security* , there shall be a principal amount outstanding of at least $5 million. (4)(A) [There] *In the case of common stock, for initial and continued listing, there* shall be at least 300 round lot holders of the security.
(B)In the case of preferred stock and secondary classes of common stock, *for initial and continued listing,* there shall be at least 100 round lot holders of the security, provided in each case that the issuer's common stock or common stock equivalent equity security [is] *must be* listed on [either] Nasdaq or [another national securities exchange] *be a covered security.* In the event the issuer's common stock or common stock equivalent security *either* is not listed on [either] Nasdaq or [another national securities exchange] *is not a covered security* , the preferred stock and/or secondary class of common stock may be listed on Nasdaq so long as the security satisfies the listing criteria for common stock.
(C)No change.
(5)There shall be at least 1,000,000 publicly held shares for initial listing and 500,000 publicly held shares for continued listing. For initial listing, such shares shall have a market value [of at least $5 million] *as provided in the applicable provision of Rule 4310(c)(2)* . For continued listing, such shares shall have a market value of at least $1 million. In the case of preferred stock and secondary classes of common stock, there shall be at least 200,000 publicly held shares having a market value of at least [$2] *$3.5* million for initial listing and 100,000 publicly held shares having a market value of [$500,000] *$1 million* for continued listing. In addition, the issuer's common stock or common stock equivalent security security must be listed on either Nasdaq or [another national securities exchange] *be a covered security* . In the event the issuer's common stock or common stock equivalent security *either* is not listed on [either] Nasdaq or [another national securities exchange] *is not a covered security* , the preferred stock and/or secondary class of common stock may be traded on Nasdaq so long as the security satisfies the listing criteria for common stock. Shares held directly or indirectly by any officer or director of the issuer and by any person who is the beneficial owner of more than 10 percent of the total shares outstanding are not considered to be publicly held.
(6)In the case of rights, warrants and ADRs for initial listing only, at least [100,000] *400,000* shall be issued. Issuers of ADRs must also meet the round lot holders and publicly held shares requirements set forth in *the applicable provisions of Rules 4310(c)(2), 4320(e)(4) and 4320(e)(5)* [subsections
(4)and
(5)above].
(7)In the case of rights and warrants, *for initial and continued listing,* the underlying security shall be listed on Nasdaq or [another national securities exchange] *be a covered security* . (8)-(26) No change.
(f)No change. IM-4803. Staff Review of Deficiency As provided in Rule 4803(a)(1)(A), the staff of the Listing Department may accept a plan to regain compliance with respect to quantitative deficiencies from standards that do not themselves provide a compliance period. Such standards include: Rules [4310(c)(2)(B)(i) and (iii)] *4310(c)(3)(A) and 4310(c)(3)(C)* Rule 4310(c)(6) Rule 4310(c)(7) (but only as to the number of publicly held shares, and not as to such shares' market value) [Rules 4320(e)(2)(B)(i) and (iii)] *Rule 4320(e)(2)(B) * Rules 4320(e)(4) and
(5)(but only as to the number of publicly held shares, and not as to such shares' market value) Rules 4450(a)(1), (3), and
(4)Rules 4450(b)(1)(B), (b)(2), and (b)(5), and Rules 4450(h)(1) and (4). In a case where an issuer fails to comply with the requirement of Rules [4310(c)(2)(B)(iii), 4320(e)(2)(B)(iii),] *4310(c)(3)(C)* or 4450(b)(1)(B), the Listing Department shall not accept a plan to achieve compliance with those requirements in the future, since compliance requires stated levels of net income or assets and revenues during completed fiscal years and therefore can only be demonstrated through audited financial statements. Similarly, an issuer may not submit a plan relying on partial-year performance to demonstrate compliance with these standards. An issuer cited for non-compliance with these requirements may, however, submit a plan that demonstrates current or near-term compliance with Rules [4310(c)(2)(B)(i), 4320(e)(2)(B)(i),] *4310(c)(3)(A)* or 4450(a)(3) (i.e., the alternative listing requirement relating to stockholders' equity), or Rules [4310(c)(2)(B)(ii), 4320(e)(2)(B)(ii),] *4310(c)(3)(B)* or 4450(b)(1)(A) (i.e., the alternative listing requirement relating to market value of listed securities). II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, Nasdaq included statements concerning the purpose of, and basis for, the proposed rule change, as amended, and discussed any comments it received on the proposed rule change, as amended. The text of these statements may be examined at the places specified in Item IV below. Nasdaq has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose Nasdaq proposes to increase the initial and continued listing requirements applicable to companies seeking to list, or already listed, on the Nasdaq Capital Market, as set forth in Rule 4310 (for domestic and Canadian securities) and Rule 4320 (for non-Canadian foreign securities and American Depositary Receipts). 5 Nasdaq believes that these changes will facilitate a finding by the Commission that the listing standards for the Capital Market are substantially similar to the listing standards applicable to securities listed on the New York Stock Exchange, the American Stock Exchange, or the Nasdaq Global Market. This finding is required before the Commission can designate securities listed on the Capital Market as “covered securities,” which are exempt from state regulation under Section 18 of the Securities Act of 1933 (“Securities Act”). 6 5 *See* Amendment No. 1, *supra* note 3. 6 15 U.S.C. 77r(b). Primary Listing Standards The Exchange states that currently, a company can list on the Capital Market by meeting a stockholders' equity, income or market value of listed securities requirement, along with other applicable listing standards. Nasdaq proposes to modify the income and market value of listed securities components of these listing standards to also require a minimum of $4 million in equity in each case. In addition, for companies listing under the equity alternative, Nasdaq proposes to require a two year operating history, instead of the one year history currently required. Further, for companies listing under the market value of listed securities and equity alternatives, Nasdaq proposes to increase the market value of publicly held shares requirement for initial listing from $5 million to $15 million. Finally, Nasdaq proposes to clarify that all companies must have 300 round lot shareholders for continued listing of a primary class of common stock. Secondary Classes of Common Stock and Preferred Stock Nasdaq states that it currently permits the listing of secondary classes of common stock and preferred stock on the Capital Market under lower liquidity standards, when the primary class of common stock is listed on Nasdaq or a national securities exchange. Nasdaq proposes to increase the market value of publicly held shares requirement from $2 million to $3.5 million for initial listing and from $500,000 to $1 million for continued listing of these securities. In addition, Nasdaq proposes to modify the listing standards so that the lower liquidity standards are available only when a company's common stock or its equivalent is listed on Nasdaq or is a “covered security” as defined in Section 18 of the Securities Act. Finally, Nasdaq proposes to clarify that companies must have 100 round lot shareholders for continued listing under these listing standards. Rights and Warrants Nasdaq proposes to increase the requirement for initial listing of rights and warrants to require that there be 400,000 outstanding. In addition, Nasdaq proposes to require that for initial and continued listing, the security underlying a right or warrant must be listed on Nasdaq or be a covered security. 7 7 *See* Amendment No. 1, *supra* note 3. Convertible Debt Nasdaq states that its rules currently permit the listing of convertible debt on the Capital Market. Nasdaq proposes to modify those rules, to require that for the initial listing of convertible debt either that:
(i)The issuer of the debt must have an equity security that is listed on Nasdaq, the American Stock Exchange or the New York Stock Exchange;
(ii)an issuer whose equity security is listed on Nasdaq, the American Stock Exchange or the New York Stock Exchange, directly or indirectly owns a majority interest in, or is under common control with, the issuer of the debt security, or has guaranteed the debt security;
(iii)a nationally recognized securities rating organization (an “NRSRO”) has assigned a current rating to the debt security that is no lower than an S&P Corporation “B” rating or equivalent rating by another NRSRO; or,
(iv)if no NRSRO has assigned a rating to the issue, an NRSRO has currently assigned:
(1)An investment grade rating to an immediately senior issue; or
(2)a rating that is no lower than an S&P Corporation “B” rating, or an equivalent rating by another NRSRO, to a *pari passu* or junior issue. 8 8 *See* Amendment No. 1, *supra* note 3. Other Changes Nasdaq also proposes to make technical and conforming changes to the rules by adding a definition of “covered security” in Rule 4200, deleting certain other definitions in Rule 4200 that have no current applicability under Nasdaq rules, and adjusting cross references contained in IM-4803. 9 9 Nasdaq notes that the references to Rule 4320 in the final paragraph of IM-4803 have been deleted based on the new structure of the rules. Nonetheless, the substance of this interpretive material continues to apply to non-U.S. companies in the same manner that it applies to domestic companies due to the cross reference to Rule 4310(c)(3) contained in Rule 4320(e)(2)(B). Implementation Nasdaq states that it recognizes that the proposed changes could result in a security that currently meets all the listing requirements becoming non-compliant. Therefore, Nasdaq proposes that the changes to the continued listing requirements be made effective 30 days 10 after the proposed rule change is approved by the Commission. Nasdaq believes that this period would provide currently-listed companies with adequate time to comply. 10 *See* Amendment No. 1, *supra* note 3. In the case of companies applying for initial listing, Nasdaq proposes that the new requirements be effective upon approval for companies that apply after the date this proposed rule change is submitted to the SEC. Nasdaq states that companies that had applied for listing prior to the date this proposed rule change is submitted to the SEC would be able to continue to qualify under the prior standards, provided that they complete the listing process not later than 30 days 11 after the proposed rule change is approved by the Commission. Companies that apply after the date this proposed rule change is submitted to the SEC would be approved for listing based on the rules in effect at the time of the approval. The Exchange believes that this schedule provides notice to companies applying for listing that they would be subject to higher standards upon approval of the rule, so such companies would not be prejudiced, but recognizes that companies that have previously applied did so in reliance on the prior listing standards, and therefore provides them a reasonable period of time to complete the listing process on that basis. 11 *See* Amendment No. 1, *supra* note 3. The Exchange states that these procedures are similar to those used when the listing standards were revised in 1997 and 2001. 12 12 *See* Securities Exchange Act Release Nos. 38961 (August 22, 1997), 62 FR 45895 (Aug. 29, 1997) (approving SR-NASD-1997-16); and 44499 (June 29, 2001), 66 FR 35819 (July 9, 2001) (approving SR-NASD-2001-14). 2. Statutory Basis Nasdaq believes that the proposed rule change, as amended, is consistent with the provisions of Section 6 of the Act 13 in general and with Section 6(b)(5) of the Act, 14 in particular. Section 6(b)(5) requires that Nasdaq's rules be designed to promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and open market, and to protect investors and the public interest. The Exchange believes that the proposed rule change, as amended, would raise the listing standards on the Nasdaq Capital Market, which will help protect investors. Further, Nasdaq believes that the proposed rule change will facilitate the Commission's review of Nasdaq's petition to treat securities listed on the Capital Market as covered securities under Section 18(b) of the Securities Act, 15 which would remove an impediment to the mechanism of a free and open market. 16 13 15 U.S.C. 78f. 14 15 U.S.C. 78f(b)(5). 15 15 U.S.C. 77r(b). 16 Petition to Amend Rule 146(b) to Designate Securities Listed on the Nasdaq Capital Market as Covered Securities for the Purpose of Section 18 of the Securities Act of 1933 (February 28, 2006) (designated as Commission File No. 4-513, available at: *http://www.sec.gov/rules/petitions/petn4-513.pdf* ). B. Self-Regulatory Organization's Statement on Burden on Competition Nasdaq does not believe that the proposed rule change, as amended, will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others Written comments were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Within 35 days of the date of publication of this notice in the **Federal Register** or within such longer period
(i)as the Commission may designate up to 90 days of such date if it finds such longer period to be appropriate and publishes its reasons for so finding, or
(ii)as to which Nasdaq consents, the Commission will: A. By order approve such proposed rule change, or B. Institute proceedings to determine whether the proposed rule change should be disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change, as amended, is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission's Internet comment form ( *http://www.sec.gov/rules/sro.shtml* ); or • Send an e-mail to *rule-comments@sec.gov* . Please include File Number SR-NASDAQ-2006-032 on the subject line. Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, Station Place, 100 F Street, NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-NASDAQ-2006-032. 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 Nasdaq. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-NASDAQ-2006-032 and should be submitted on or before September 26, 2006. For the Commission, by the Division of Market Regulation, pursuant to delegated authority. 17 17 17 CFR 200.30-3(a)(12). Nancy M. Morris, Secretary. [FR Doc. E6-14651 Filed 9-1-06; 8:45 am] BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-54376; File No. SR-NASD-2006-093] Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Notice of Filing and Order Granting Accelerated Approval of Proposed Rule Change Regarding Pricing for Non-Members Using Nasdaq's Brut and Inet Facilities August 28, 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 July 31, 2006, the National Association of Securities Dealers, Inc. (“NASD”), through its subsidiary, The Nasdaq Stock Market, Inc. (“Nasdaq”), filed with the Securities and Exchange Commission (“Commission”) the proposed rule change as described in Items I and II below, which Items have been prepared by Nasdaq. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. In addition, the Commission is granting accelerated approval of the proposed rule change. 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b-4. I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change Nasdaq proposes to modify the pricing for non-NASD members using Nasdaq's Brut and Inet Facilities to trade non-Nasdaq securities. The filing will apply to these non-members the same rule change that Nasdaq is instituting for members. 3 Nasdaq seeks approval to implement the proposed rule change retroactively as of August 1, 2006. The text of the proposed rule change is set forth below. Proposed new language is in *italics* ; proposed deletions are in [brackets]. 4 3 *See* Securities Exchange Act Release No. 54375 (August 28, 2006) (File No. SR-NASD-2006-092). 4 Changes are marked to the rule text that appears in the electronic NASD Manual found at *http://www.nasd.com* . The Nasdaq Exchange states that it will not file conforming changes to its rules with regard to order execution and routing by non-members, since persons that are not members of the Nasdaq Exchange will not be permitted to use its order execution and routing systems. 7010. System Services (a)-(h) No change.
(i)ITS/CAES System, Brut, and Inet Order Execution and Routing (1)-(8) No change.
(9)The fees applicable to non-members using Nasdaq's Brut and Inet Facilities shall be the fees established for members under Rule 7010(i), as amended by SR-NASD-2005-019, SR-NASD-2005-035, SR-NASD-2005-048, SR-NASD-2005-071, SR-NASD-2005-125, SR-NASD-2005-137, SR-NASD-2005-154, SR-NASD-2006-013, SR-NASD-2006-023, SR-NASD-2006-031, SR-NASD-2006-057, [and] SR-NASD-2006-078 *, and SR-NASD-2006-092* and as applied to non-members by SR-NASD-2005-020, SR-NASD-2005-038, SR-NASD-2005-049, SR-NASD-2005-072, SR-NASD-2005-126, SR-NASD-2005-138, SR-NASD-2005-155, SR-NASD-2006-014, SR-NASD-2006-024, SR-NASD-2006-032, SR-NASD-2006-058, [and] SR-NASD-2006-079 *, and SR-NASD-2006-093* . (j)-(y) No change. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, Nasdaq included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it had received on the proposed rule change. The text of these statements may be examined at the places specified in Item III below. Nasdaq has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose In SR-NASD-2006-092, 5 Nasdaq amended NASD Rule 7010(i), which has historically contained the fees for the trading systems of The Nasdaq Stock Market, to reflect the Nasdaq Exchange's commencing operations for trading of securities listed on the Nasdaq Exchange. During a transitional period, the Nasdaq Exchange will operate for its own listed stocks, while The Nasdaq Stock Market, Inc. continues to operate under authority delegated by NASD to provide quotation, execution, and trade reporting services for non-Nasdaq listed securities. Nasdaq states that the Brut and Inet platforms owned by Nasdaq will be operated as facilities of the Nasdaq Exchange for purposes of trading Nasdaq-listed securities, and as facilities of NASD for purposes of trading non-Nasdaq securities. Accordingly, SR-NASD-2006-092 amended NASD Rule 7010(i) to remove fees and credits associated with trading Nasdaq-listed stocks, which are now contained in Rule 7018 of the Nasdaq Exchange. 6 Nasdaq states that NASD Rule 7010(i) would continue to govern fees and credits for the ITS/CAES System (formerly the Nasdaq Market Center) operated by Nasdaq for trading non-Nasdaq securities, as well as Brut and Inet to the extent that they are used for trading non-Nasdaq securities. The ITS/CAES System, Brut and Inet are collectively referred to in the rule as the Nasdaq Facilities. 5 *See supra* note 3. 6 *See* Securities Exchange Act Release No. 54285 (August 8, 2006) (File No. SR-NASDAQ-2006-023) (notice of filing and immediate effectiveness of proposed rule change regarding technical and conforming changes to Nasdaq Rule 7018). Telephone conversation among John Yetter, Senior Associate General Counsel, Nasdaq, David Liu, Special Counsel, Division of Market Regulation (“Division”), Commission, and Theodore S. Venuti, Attorney, Division, Commission, on August 14, 2006. SR-NASD-2006-092 also added a sentence to the rule to provide that for purposes of determining a member's volume in all securities under NASD Rule 7010(i), the term “Nasdaq Facilities,” shall also be deemed to include the member's volume in Nasdaq-listed securities traded through the facilities of the Nasdaq Exchange ( *i.e.* , the Nasdaq Market Center, Brut and Inet). Nasdaq states that this clarification was necessary to ensure that fees and credits for trading non-Nasdaq securities remain at their current levels during the transitional period before the Nasdaq Exchange begins to trade non-Nasdaq securities. In SR-NASD-2006-092, Nasdaq also changed its fees for routing orders to the New York Stock Exchange (“NYSE”) through its DOT system. NYSE recently announced that it would impose a significant fee increase on broker-dealers, such as Nasdaq's Brut broker- dealer, that route orders to the NYSE floor through DOT, effective August 1, 2006. 7 Nasdaq states that as a result, it must pass these increased costs through to market participants that make use of the routing service. Specifically, for orders that attempt to execute in the Nasdaq Facilities prior to routing and that are not charged a fee by the NYSE specialist, 8 Nasdaq is imposing a charge of $0.0002 per share executed; however, the total fee for all such orders routed during a month is capped at $60,000 per firm. For orders that are routed through DOT but that do not attempt to execute in the Nasdaq Facilities, the routing fee is $0.0003 per share executed, with no cap. 7 *See* Securities Exchange Act Release No. 54142(July 13, 2006), 71 FR 41493 (July 21, 2006) (File No. SR-NYSE-2006-46). Effective August 1, 2006, the NYSE is imposing a new charge of $0.00025 per share executed, subject to a monthly cap of $750,000. 8 Nasdaq states that the NYSE specialist fees are distinct from the new DOT fees imposed by the NYSE itself. Specialist fees are generally imposed when orders routed to the NYSE remain unexecuted for a period of time. The routing fee for orders that are charged by the specialist remains $0.01 per share executed. Finally, to encourage greater liquidity provision with respect to securities that are listed on both the NYSE and the Nasdaq Exchange, SR-NASD-2006-092 increased the credit to liquidity providers in these securities, from $0.0005 or $0.0006 per share executed to $0.0007 per share executed. Nasdaq believes that the change would promote greater competition between Nasdaq and NYSE and enhance market quality with respect to Nasdaq's trading of these dual-listed securities. Nasdaq is submitting this filing to apply the foregoing changes to non-NASD members using Nasdaq's Brut and Inet Facilities to trade non-Nasdaq securities. These non-members cannot use the facilities of the Nasdaq Exchange to trade Nasdaq-listed securities, but are currently permitted to use Brut and Inet to trade non-Nasdaq securities. 2. Statutory Basis Nasdaq believes that the proposed rule change is consistent with the provisions of Section 15A of the Act, 9 in general, and with Section 15A(b)(5) of the Act, 10 in particular, in that it provides for the equitable allocation of reasonable dues, fees and other charges among members and issuers and other persons using any facility or system which the NASD operates or controls. Nasdaq states that the proposed rule change applies to non-members that use Brut and Inet a fee change that is being implemented for NASD members that use Brut, Inet, and the ITS/CAES System to trade non-Nasdaq securities. Accordingly, Nasdaq believes that the proposed rule change promotes an equitable allocation of fees between members and non-members using these order execution facilities. 9 15 U.S.C. 78 *o* -3. 10 15 U.S.C. 78 *o* -3(b)(5). B. Self-Regulatory Organization's Statement on Burden on Competition Nasdaq does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others Written comments were neither solicited nor received. III. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: *Electronic comments:* • Use the Commission's Internet comment form ( *http://www.sec.gov/rules/sro.shtml* ); or • Send an e-mail to *rule-comments@sec.gov* . Please include File Number SR-NASD-2006-093 on the subject line. Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-NASD-2006-093. This file number should be included on the subject line if e-mail is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site ( *http://www.sec.gov/rules/sro.shtml* ). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for inspection and copying in the Commission's Public Reference Room. Copies of such filing also will be available for inspection and copying at the principal office of the NASD. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make publicly available. All submissions should refer to File Number SR-NASD-2006-093 and should be submitted on or before September 26, 2006. IV. Commission's Findings and Order Granting Accelerated Approval of Proposed Rule Change The Commission finds that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a self-regulatory organization. 11 Specifically, the Commission believes that the proposed rule change is consistent with Section 15A(b)(5) of the Act, 12 which requires that the rules of the self-regulatory organization provide for the equitable allocation of reasonable dues, fees, and other charges among members and issuers and other persons using any facilities or system which it operates or controls. 11 In approving this proposal, the Commission has considered its impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). 12 15 U.S.C. 78 *o* -3(b)(5). The Commission notes that this proposal would retroactively modify pricing for non-NASD members using Nasdaq's Brut and Inet Facilities that would permit the schedule for non-NASD members to mirror the schedule applicable to NASD members that became effective July 31, 2006, pursuant to SR-NASD-2006-092. Nasdaq has requested that the Commission find good cause for approving the proposed rule change prior to the thirtieth day after publication of notice thereof in the **Federal Register** . The Commission notes that the proposed fees for non-NASD members are identical to those in SR-NASD-2006-092, which implemented those fees for NASD members and which became effective as of July 31, 2006. The Commission notes that this change will promote consistency in Nasdaq's fee schedule by applying the same pricing schedule with the same date of effectiveness for both NASD members and non-NASD members. Accordingly, the Commission finds good cause, pursuant to Section 19(b)(2) of the Act, 13 for approving the proposed rule change prior to the thirtieth day after the date of publication of notice thereof in the **Federal Register** . 13 15 U.S.C. 78s(b)(2). V. Conclusion *It is therefore ordered,* pursuant to Section 19(b)(2) of the Act, 14 that the proposed rule change (SR-NASD-2006-093) be, and hereby is, approved on an accelerated basis. 14 15 U.S.C. 78s(b)(2). 15 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Market Regulation, pursuant to delegated authority. 15 Nancy M. Morris, Secretary. [FR Doc. E6-14598 Filed 8-29-06; 8:45 am] BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-54375; File No. SR-NASD-2006-092] Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Regarding the Pricing Schedule for NASD Members Using the ITS/CAES System, Brut, and Inet To Trade Securities Not Listed on The NASDAQ Stock Market LLC August 28, 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 July 31, 2006, the National Association of Securities Dealers, Inc. (“NASD”), through its subsidiary, The Nasdaq Stock Market, Inc. (“Nasdaq”), filed with the Securities and Exchange Commission (“Commission”) the proposed rule change as described in Items I, II, and III below, which Items have been prepared by Nasdaq. Nasdaq filed the proposed rule change pursuant to Section 19(b)(3)(A)(ii) of the Act, 3 and Rule 19b-4(f)(2) thereunder, 4 which renders the proposal effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b-4. 3 15 U.S.C. 78s(b)(3)(A)(ii). 4 17 CFR 240.19b-4(f)(2). I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change Nasdaq proposes to modify the pricing for NASD members using the ITS/CAES System and Brut and Inet (“Nasdaq Facilities”) to trade securities that are not listed on The NASDAQ Stock Market LLC (“Nasdaq Exchange”). 5 Nasdaq states that it will implement the proposed rule change on August 1, 2006. The text of the proposed rule change is set forth below. Proposed new language is in *italics* ; proposed deletions are in [brackets]. 6 5 The Commission notes that Nasdaq filed a proposed rule change to apply the same pricing change to non-members. *See* Securities Exchange Act Release No. 54376 (August 28, 2006) (File No. SR-NASD-2006-093). 6 Nasdaq states that changes are marked to the rule text that appears in the electronic NASD Manual found at *www.nasd.com* , as further amended on an immediately effective basis by SR-NASD-2006-078 (June 30, 2006). *See* Securities Exchange Act Release No. 54268 (August 3, 2006), 71 FR 45882 (August 10, 2006). Nasdaq states that prior to the date when the Nasdaq Exchange begins to trade securities that are not listed on the Nasdaq Exchange, the Nasdaq Exchange will file a conforming change to the rules of the Nasdaq Exchange. The rules of the Nasdaq Exchange are found at *www.complinet.com/nasdaq* . 7010. System Services (a)-(h) No change.
(i)[Nasdaq Market Center] *ITS/CAES System,* Brut, and Inet Order Execution and Routing
(1)The following charges shall apply to the use of the order execution and routing services of the [Nasdaq Market Center] *ITS/CAES System,* Brut, and Inet (the “Nasdaq Facilities”) by members for all [Nasdaq-listed securities subject to the Nasdaq UTP Plan and for] Exchange-Traded Funds that are not listed on *The NASDAQ Stock Market LLC* [Nasdaq]. The term “Exchange-Traded Funds” shall mean Portfolio Depository Receipts, Index Fund Shares, and Trust Issued Receipts as such terms are defined in Rule 4420(i), (j), and (l), respectively, *of The NASDAQ Stock Market LLC. For purposes of determining a member's volume in all securities under Rule 7010(i), the term “Nasdaq Facilities” shall also be deemed to include the member's volume in Nasdaq-listed securities through the facilities of The NASDAQ Stock Market LLC* . Order Execution: Order that accesses the Quote/Order of a market participant that does not charge an access fee to market participants accessing its Quotes/Orders through the Nasdaq Facilities: Charge to member entering order: Members with an average daily volume through the Nasdaq Facilities in all securities during the month of
(i)more than 30 million shares of liquidity provided, and
(ii)more than 50 million shares of liquidity accessed and/or routed; or members with an average daily volume through the Nasdaq Facilities in all securities during the month of
(i)more than 20 million shares of liquidity provided, and
(ii)more than 60 million shares of liquidity accessed and/or routed $0.0028 per share executed (or, in the case of executions against Quotes/Orders at less than $1.00 per share, 0.1% of the total transaction cost). Other members $0.0030 per share executed (or, in the case of executions against Quotes/Orders at less than $1.00 per share, 0.1% of the total transaction cost). Credit to member providing liquidity: Members with an average daily volume through the Nasdaq Facilities in all securities during the month of more than 30 million shares of liquidity provided $0.0025 per share executed (or $0, in the case of executions against Quotes/Orders at less than $1.00 per share). Other members $0.0020 per share executed (or $0, in the case of executions against Quotes/Orders at less than $1.00 per share). Order that accesses the Quote/Order of a market participant that charges an access fee to market participants accessing its Quotes/Orders through the Nasdaq Facilities: Charge to member entering order: Members with an average daily volume through the Nasdaq Facilities in all securities during the month of more than 500,000 shares of liquidity provided $0.001 per share executed (but no more than $10,000 per month). Other members $0.001 per share executed. [Order Routing for Nasdaq-Listed Securities]: [Any order entered by a member that is routed outside of the Nasdaq Facilities and that does not attempt to execute in the Nasdaq Facilities prior to routing] [The greater of
(i)$0.004 per share executed or
(ii)a pass-through of all applicable access fees charged by electronic communications networks that charge more than $0.003 per share executed]. [Any other order entered by a member that is routed outside of the Nasdaq Facilities:] [Members with an average daily volume through the Nasdaq Facilities in all securities during the month of
(i)more than 30 million shares of liquidity provided, and
(ii)more than 50 million shares of liquidity accessed and/or routed; or members with an average daily volume through the Nasdaq Facilities in all securities during the month of
(i)more than 20 million shares of liquidity provided, and
(ii)more than 60 million shares of liquidity accessed and/or routed] [The greater of
(i)$0.0028 per share executed or
(ii)a pass-through of all applicable access fees charged by electronic communications networks that charge more than $0.003 per share executed]. [Other members] [The greater of
(i)$0.0030 per share executed or
(ii)a pass-through of all applicable access fees charged by electronic communications networks that charge more than $0.003 per share executed]. Order Routing for Exchange-Traded Funds Not Listed On Nasdaq: Order routed to the New York Stock Exchange (“NYSE”) through its DOT system See DOT fee schedule in Rule 7010(i)[(6)] *(7).* Any other order entered by a member that is routed outside of the Nasdaq Facilities and that does not attempt to execute in the Nasdaq Facilities prior to routing $0.004 per share executed. Order routed to the American Stock Exchange (“Amex”) after attempting to execute in the Nasdaq Facilities $0.003 per share executed (plus, in the case of orders charged a fee by the Amex specialist, $0.01 per share executed). Order routed through the Intermarket Trading System (“ITS”) after attempting to execute in the Nasdaq Facilities $0.0007 per share executed. Order routed to venues other than the NYSE and Amex after attempting to execute in the Nasdaq Facilities $0.003 per share executed.
(2)No change.
(3)[Closing Cross] *Reserved* [Market-on-Close and Limit-on-Close orders executed in the Nasdaq Closing Cross] [$0.0005 per share executed]. [All other quotes and orders executed in the Nasdaq Closing Cross] [No charge for execution].
(4)[Opening Cross] *Reserved* [Members shall be assessed the following Nasdaq Market Center execution fees for quotes and orders executed in the Nasdaq Opening Cross:] [Market-on-Open, Limit-on-Open, Good-till-Cancelled, Immediate-or-Cancel, and Day orders executed in the Nasdaq Opening Cross] [$0.0005 per share executed for the net number of buy and sell shares up to a maximum of $10,000 per firm per month]. [All other quotes and orders executed in the Nasdaq Opening Cross] [No charge for execution].
(5)[IPO/Halt Cross] *Reserved* [Members shall be assessed the following Nasdaq Market Center execution fees for quotes and orders executed in the Nasdaq IPO/Halt Cross:] [All quotes and orders executed in the Nasdaq IPO/Halt Cross] [$0.0005 per share executed].
(6)Except as provided in paragraph (7), the following charges shall apply to the use of the order execution and routing services of the Nasdaq Facilities by members for securities subject to the Consolidated Quotations Service and Consolidated Tape Association plans other than Exchange-Traded Funds (“Covered Securities”): Order Execution: Order that accesses the Quote/Order of a Nasdaq Facility market participant: Charge to member entering order $0.0007 per share executed. Credit to member providing liquidity *for a Covered Security listed on NYSE and The NASDAQ Stock Market LLC:* *$0.0007 per share executed.* *Credit to a member providing liquidity for other Covered Securities* Members with an average daily volume through the Nasdaq Facilities in Covered Securities during the month of more than 5 million shares of liquidity accessed, provided, or routed but less than 10 million shares of liquidity provided $0.0005 per share executed. Members with an average daily volume through the Nasdaq Facilities in Covered Securities during the month of 10 million or more shares of liquidity provided $0.0006 per share executed. Other members No credit. Order Routing: Order routed to Amex $0.003 per share executed (plus, in the case of orders charged a fee by the Amex specialist, $0.01 per share executed). Order routed through the ITS $0.0007 per share executed. Order routed to NYSE See DOT fee schedule in Rule 7010(i)(7). Order for NYSE-listed Covered Security routed to venue other than the NYSE $0.001 per share executed. Order for Covered Security listed on venue other than the NYSE and routed to venue other than Amex $0.003 per share executed.
(7)The following [classes] *charges* shall apply to the use of the Nasdaq Facilities by members for routing to the NYSE through its DOT system for all securities, including Exchange-Traded Funds: Order charged a fee by the NYSE specialist $0.01 per share executed. Order that attempts to execute in the Nasdaq Facilities prior to routing and that is not charged a fee by the NYSE specialist [No charge] *$0.0002 per share executed (but no more than $60,000 per month).* Order that does not attempt to execute in the Nasdaq Facilities prior to routing and that is not charged a fee by the NYSE specialist[:] *$0.0003 per share executed.* [Average daily shares of liquidity routed through Nasdaq's DOT linkage by the member during the month:] [More than 30 million] [$0.0001 per share executed]. [Between 2,000,001 and 30 million] [$0.0003 per share executed]. [Between 250,001 and 2 million] [$0.0005 per share executed]. [Between 100,001 and 250,000] [$0.001 per share executed]. [100,000 or less] [$0.01 per share executed].
(8)When a market participant enters an order into Nasdaq's Brut or Inet systems that is sent to a *n ITS/CAES System* [Nasdaq Market Center] market participant that charges an access fee to Brut or Inet, the market participant entering the order shall be charged
(i)the applicable execution fee of the Nasdaq Facilities, or
(ii)in the case of executions against Quotes/Orders at less than $1.00 per share, a pass-through of the access fee charged to Brut or Inet.
(9)No change. (j)-(y) No change. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, Nasdaq included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. Nasdaq has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose Transition to Operation of the Nasdaq Exchange Nasdaq proposes to amend NASD Rule 7010(i), which has historically contained the fees for the trading systems of The Nasdaq Stock Market, to reflect the Nasdaq Exchange's commencing operations for trading of securities listed on the Nasdaq Exchange. During a transitional period, the Nasdaq Exchange will operate for its own listed stocks, while The Nasdaq Stock Market, Inc. continues to operate under authority delegated by NASD to provide quotation, execution, and trade reporting services for non-Nasdaq listed securities. Nasdaq states that the Brut and Inet platforms owned by Nasdaq will be operated as facilities of the Nasdaq Exchange for purposes of trading Nasdaq-listed securities, and as facilities of NASD for purposes of trading non-Nasdaq securities. Accordingly, Nasdaq is amending NASD Rule 7010(i) to remove fees and credits associated with trading Nasdaq-listed stocks, which are now contained in Rule 7018 of the Nasdaq Exchange. 7 Nasdaq states that NASD Rule 7010(i) would continue to govern fees and credits for the ITS/CAES System (formerly the Nasdaq Market Center) operated by Nasdaq for trading non-Nasdaq securities, as well as Brut and Inet to the extent that they are used for trading non-Nasdaq securities. The ITS/CAES System, Brut and Inet are collectively referred to in the proposed rule as the Nasdaq Facilities. 7 *See* Securities Exchange Act Release No. 54285 (August 8, 2006) (File No. SR-NASDAQ-2006-023) (notice of filing and immediate effectiveness of proposed rule change regarding technical and conforming changes to Nasdaq Rule 7018). Telephone conversation among John Yetter, Senior Associate General Counsel, Nasdaq, David Liu, Special Counsel, Division of Market Regulation (“Division”), Commission, and Theodore S. Venuti, Attorney, Division, Commission, on August 14, 2006. Nasdaq states that, because the level of some of the current fees for transactions in non-Nasdaq stocks depends upon a market participant's monthly transaction volume in all securities ( *i.e.* , Nasdaq-listed and non-Nasdaq listed), Nasdaq is adding a sentence to the proposed rule to provide that, for purposes of determining a member's volume in all securities under NASD Rule 7010(i), the term “Nasdaq Facilities,” shall also be deemed to include the member's volume in Nasdaq-listed securities traded through the facilities of the Nasdaq Exchange ( *i.e.* , the Nasdaq Market Center, Brut and Inet). Nasdaq states that this clarification is necessary to ensure that fees and credits for trading non-Nasdaq securities remain at their current levels during the transitional period before the Nasdaq Exchange begins to trade non-Nasdaq securities. Fee Changes Nasdaq also proposes to change its fees for routing orders to the New York Stock Exchange (“NYSE”) through its DOT system. NYSE recently announced that it would impose a significant fee increase on broker-dealers, such as Nasdaq's Brut broker-dealer, that route orders to the NYSE floor through DOT, effective August 1, 2006. 8 Nasdaq states that as a result, it must pass these increased costs through to market participants that make use of the routing service. Specifically, for orders that attempt to execute in the Nasdaq Facilities prior to routing and that are not charged a fee by the NYSE specialist, 9 Nasdaq is proposing a charge of $0.0002 per share executed; however, the total fee for all such orders routed during a month is capped at $60,000. For orders that are routed through DOT but that do not attempt to execute in the Nasdaq Facilities, the routing fee is $0.0003 per share executed, with no cap. 8 *See* Securities Exchange Act Release No. 54142 (July 13, 2006), 71 FR 41493 (July 21, 2006) (File No. SR-NYSE-2006-46). Effective August 1, 2006, the NYSE is imposing a new charge of $0.00025 per share executed, subject to a monthly cap of $750,000. 9 Nasdaq states that the NYSE specialist fees are distinct from the new DOT fees imposed by the NYSE itself. Specialist fees are generally imposed when orders routed to the NYSE remain unexecuted for a period of time. The routing fee for orders that are charged by the specialist remains $0.01 per share executed. Finally, to encourage greater liquidity provision with respect to securities that are listed on both the NYSE and the Nasdaq Exchange, Nasdaq proposes to increase the credit to liquidity providers in these securities, from $0.0005 or $0.0006 per share executed (depending on the member's volume) to $0.0007 per share executed. Nasdaq believes that the change would promote greater competition between Nasdaq and NYSE and enhance market quality with respect to Nasdaq's trading of these dual-listed securities. 2. Statutory Basis Nasdaq believes that the proposed rule change is consistent with the provisions of Section 15A of the Act, 10 in general, and with Section 15A(b)(5) of the Act, 11 in particular, in that it provides for the equitable allocation of reasonable dues, fees and other charges among members and issuers and other persons using any facility or system which the NASD operates or controls. Nasdaq states that its changes in routing fees are necessitated by increased costs imposed on Nasdaq's routing broker-dealer by NYSE. Nasdaq believes that the increased liquidity provider credit for dual-listed stocks will promote greater competition between the two primary listing markets in the U.S. Finally, Nasdaq believes the changes to reflect operation of the Nasdaq Exchange for trading Nasdaq-listed securities are needed to maintain the current levels of other fees and credits associated with trading non-Nasdaq securities. 10 15 U.S.C. 78 *o* -3. 11 15 U.S.C. 78 *o* -3(b)(5). B. Self-Regulatory Organization's Statement on Burden on Competition Nasdaq does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others Written comments were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change is subject to Section 19(b)(3)(A)(ii) of the Act 12 and subparagraph (f)(2) of Rule 19b-4 thereunder 13 because it establishes or changes a due, fee, or other charge applicable only to a member imposed by the self-regulatory organization. Accordingly, the proposal is effective upon Commission receipt of the filing. At any time within 60 days of the filing of the proposed rule change, the Commission may summarily abrogate such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. 12 15 U.S.C. 78s(b)(3)(A)(ii). 13 17 CFR 240.19b-4(f)(2). IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission's Internet comment form ( *http://www.sec.gov/rules/sro.shtml* ); or • Send an e-mail to *rule-comments@sec.gov* . Please include File No. SR-NASD-2006-092 on the subject line. Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, Station Place, 100 F Street, NE., Washington, DC 20549-1090. All submissions should refer to File No. SR-NASD-2006-092. This file number should be included on the subject line if e-mail is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site ( *http://www.sec.gov/rules/sro.shtml* ). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for inspection and copying in the Commission's Public Reference Room. Copies of such filing will also be available for inspection and copying at the principal office of the NASD. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File No. SR-NASD-2006-092 and should be submitted on or before September 26, 2006. For the Commission, by the Division of Market Regulation, pursuant to delegated authority. 14 14 17 CFR 200.30-3(a)(12). Nancy M. Morris, Secretary. [FR Doc. E6-14599 Filed 9-1-06; 8:45 am] BILLING CODE 8010-01-P SMALL BUSINESS ADMINISTRATION Reporting and Recordkeeping Requirements Under OMB Review AGENCY: U.S. Small Business Administration. ACTION: Notice of Reporting Requirements Submitted for OMB Review. SUMMARY: Under the provisions of the Paperwork Reduction Act (44 U.S.C. Chapter 35), agencies are required to submit proposed reporting and recordkeeping requirements to OMB for review and approval, and to publish a notice in the **Federal Register** notifying the public that the agency has made such a submission. DATES: Submit comments on or before October 5, 2006. If you intend to comment but cannot prepare comments promptly, please advise the OMB Reviewer and the Agency Clearance Officer before the deadline. *Copies:* Request for clearance (OMB 83-I), supporting statement, and other documents submitted to OMB for review may be obtained from the Agency Clearance Officer. ADDRESSES: Address all comments concerning this notice to: *Agency Clearance Officer,* Jacqueline White, Small Business Administration, 409 3rd Street, SW., 5th Floor, Washington, DC 20416, and *David_Rostker@omb.eop.gov* fax number 202-395-7285 Office of Information and Regulatory Affairs, Office of Management and Budget. FOR FURTHER INFORMATION CONTACT: Jacqueline White, Agency Clearance Officer, *Jacqueline.white@sba.gov*
(202)205-7044. SUPPLEMENTARY INFORMATION: *Title:* Borrower's Progress Certification. *Form No.:* 1366. *Frequency:* On Occasion. *Description of Respondents:* Recipients of Disaster Loans. *Annual Responses:* 22,253. *Annual Burden:* 12,078. Jacqueline White, Chief, Administrative Information Branch. [FR Doc. E6-14654 Filed 9-1-06; 8:45 am] BILLING CODE 8025-01-P SMALL BUSINESS ADMINISTRATION Rustic Canyon Ventures SBIC, L.P., License No. 09/79-0450, Notice Seeking Exemption Under Section 312 of the Small Business Investment Act, Conflicts of Interest Notice is hereby given that Rustic Canyon Ventures SBIC, L.P., 2425 Olympic Blvd., Suite 6050W, Santa Monica, CA 90404, a Federal Licensee under the Small Business Investment Act of 1958, as amended (“the Act”), in connection with the financing of a small concern, has sought an exemption under Section 312 of the Act and Section 107.730, Financings which Constitute Conflicts of Interest of the Small Business Administration (“SBA”) Rules and Regulations (13 CFR 107.730 (2006)). Rustic Canyon Ventures SBIC, L.P. proposes to provide equity security financing to Meximerica Media, Inc., 115 E. Travis #800, San Antonio, TX 78205. The financing is contemplated for operating expenses and for general corporate purposes. The financing is brought within the purview of § 107.730(a)(1) of the Regulations because Rustic Canyon Ventures, L.P. and Rustic Canyon/Fontis Partners, L.P., both Associates of Rustic Canyon Ventures SBIC, L.P., collective own more than ten percent of Meximerica Media, Inc. Therefore, Meximerica Media, Inc. is also considered an Associate of Rustic Canyon Ventures SBIC, L.P., as defined at 13 CFR 107.50 of the SBIC Regulations. Notice is hereby given that any interested person may submit written comments on the transaction to the Associate Administrator for Investment, U.S. Small Business Administration, 409 3rd Street, SW., Washington, DC 20416. Jaime Guzmán-Fournier, Associate Administrator for Investment. [FR Doc. E6-14655 Filed 9-1-06; 8:45 am] BILLING CODE 8025-01-P SMALL BUSINESS ADMINISTRATION [Disaster Declaration #10519 and #10520] New York Disaster Number NY-00022 AGENCY: U.S. Small Business Administration. ACTION: Amendment 2. SUMMARY: This is an amendment of the Presidential declaration of a major disaster for the State of New York (FEMA—1650—DR), dated 07/03/2006. *Incident:* Severe Storms and Flooding. *Incident Period:* 06/26/2006 through 07/10/2006. *Effective Date:* 08/29/2006. *Physical Loan Application Deadline Date:* 10/02/2006. *EIDL Loan Application Deadline Date:* 04/03/2007. 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: The notice of the President's major disaster declaration for the State of New York, dated 07/03/2006, is hereby amended to extend the deadline for filing applications for physical damages as a result of this disaster to 10/02/2006. All other information in the original declaration remains unchanged. (Catalog of Federal Domestic Assistance Numbers 59002 and 59008) Herbert L. Mitchell, Associate Administrator for Disaster Assistance. [FR Doc. E6-14656 Filed 9-1-06; 8:45 am] BILLING CODE 8025-01-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. SUMMARY: The Small Business Administration
(SBA)is notifying the public that it intends to grant the pending applications of 42 existing Small Business Development Centers (SBDCs) for refunding on January 1, 2007, subject to the availability of funds. Fourteen 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 90 days before the expected refunding date. The SBDCs and their mailing addresses are listed below in the address 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 SDBC State Directors Mr. Greg Panichello, State Director, Salt Lake Community College, 9750 South 300 West, Sandy, UT 84070,
(801)957-3493. Mr. Herbert Thweatt, Director, American Samoa Community College, P.O. Box 2609, Pago Pago, American Samoa 96799, 011-684-699-4830. Mr. John Lenti, State Director, University of South Carolina, 1710 College Street, Columbia, SC 29208,
(803)777-4907. Ms. Kelly Manning, State Director, Office of Business Development, 1625 Broadway, Suite 1710, Denver, CO 80202,
(303)892-3864. Mr. Henry Turner, Executive Director, Howard University, 2600 6th St., NW., Room 125, Washington, DC 20059,
(202)806-1550. Mr. Jerry Cartwright, State Director, University of West Florida, 401 East Chase Street, Suite 100, Pensacola, FL 32502,
(850)473-7800. Mr. Allan Adams, Acting State Director, University of Georgia, 1180 East Broad Street, Athens, GA 30602,
(706)542-6762. Mr. Darryl Mleynek, State Director, University of Hawaii/Hilo, 308 Kamehameha Avenue, Suite 201, Hilo, HI 96720,
(808)974-7515. Mr. Sam Males, State Director, University of Nevada/Reno, College of Business Administration, Room 411, Reno, NV 89557-0100,
(775)784-1717. Mr. Patrick Geho, State Director, Middle Tennessee State University, P.O. Box 98, Murfreesboro, TN 37132,
(615)849-9999. Mr. Bruce Kidd, Acting State Director, Economic Development Council, One North Capitol, Suite 900, Indianapolis, IN 46204,
(317)232-2464. Ms. Mary Collins, State Director, University of New Hampshire, 108 McConnell Hall, Durham, NH 03824,
(603)862-4879. Mr. John Massaua, State Director, University of Southern Maine, 96 Falmouth Street, Portland, ME 04103,
(207)780-4420. Mr. Brett Rogers, State Director, Washington State University, 534 East Trent Avenue, Spokane, WA 99210-1495,
(509)358-7765. Mr. Ron Newman, Acting State Director, University of North Dakota, 1600 East Century Avenue, Suite 2, Bismarck, ND 58503,
(701)328-5375. Mr. Casey Jeszenka, SBDC Director, University of Guam, P.O. Box 5061—U.O.G. Station, Mangilao, GU 96923,
(671)735-2590. Mr. John Hemmingstad, State Director, University of South Dakota,414 East Clark Street, Patterson Hall, Vermillion, SD 57069,
(605)677-6256. Ms. Debra Malewick, State Director, University of Wisconsin, 432 North Lake Street, Room 423, Madison, WI 53706,
(608)263-7794. Mr. Greg Higgins, State Director, University of Pennsylvania, The Wharton School, 423 Vance Hall, Philadelphia, PA 19104,
(215)898-1219. Ms. Kristin Johnson, Regional Director, Humboldt State University, Office of Economic & Community Dev., 1 Harpst Street, 2006A, Siemens Hall, Arcata, CA 95521,
(707)445-9720 x317. Ms. Vi Pham, Region Director, California State University, Fullerton, 800 North State College Blvd., Fullerton, CA 92834,
(714)278-2719. Ms. Debbie Trujillo, Region Director, Southwestern Community College District, 900 Otey Lakes Road, Chula Vista, CA 91910,
(619)482-6388. Mr. Chris Rosander, Region Director, University of California, Merced, 550 East Shaw, Suite 105A, Fresno, CA 93710,
(559)241-6590. Mr. Dan Ripke, Region Director, California State University, Chico Research Foundation, Chico, CA 95929-0765,
(530)898-4598. 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 the SBA. SBDCs operate on the basis of a state plan to provide assistance within a state or geographic area. The initial plan must have the written approval of 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: August 25, 2006. Antonio Doss, Associate Administrator for Small Business Development Centers. [FR Doc. E6-14657 Filed 9-1-06; 8:45 am] BILLING CODE 8025-01-P DEPARTMENT OF STATE [Public Notice 5538] Culturally Significant Objects Imported for Exhibition Determinations: “I See No Stranger: Early Sikh Art and Devotion” *Summary:* Notice is hereby given of the following determinations: Pursuant to the authority vested in me by the Act of October 19, 1965 (79 Stat. 985; 22 U.S.C. 2459), Executive Order 12047 of March 27, 1978, the Foreign Affairs Reform and Restructuring Act of 1998 (112 Stat. 2681, *et seq.* ; 22 U.S.C. 6501 note, *et seq.* ), Delegation of Authority No. 234 of October 1, 1999, Delegation of Authority No. 236 of October 19, 1999, as amended, and Delegation of Authority No. 257 of April 15, 2003 [68 FR 19875], I hereby determine that the objects to be included in the exhibition “I See No Stranger: Early Sikh Art and Devotion,” imported from abroad for temporary exhibition within the United States, are of cultural significance. The objects are imported pursuant to loan agreements with the foreign owners or custodians. I also determine that the exhibition or display of the exhibit objects at the Rubin Museum of Art, New York, New York, from on or about September 18, 2006, until on or about January 29, 2007, and at possible additional venues yet to be determined, is in the national interest. Public Notice of these Determinations is ordered to be published in the **Federal Register** . *For Further Information Contact:* For further information, including a list of the exhibit objects, contact Paul Manning, Attorney-Adviser, Office of the Legal Adviser, U.S. Department of State (telephone: 202/453-8050). The address is U.S. Department of State, SA-44, 301 4th Street, SW., Room 700, Washington, DC 20547-0001. Dated: August 29, 2006. C. Miller Crouch, Principal Deputy Assistant Secretary for Educational and Cultural Affairs, Department of State. [FR Doc. E6-14650 Filed 9-1-06; 8:45 am] BILLING CODE 4710-05-P DEPARTMENT OF STATE [Public Notice 5513] Announcement of Meetings of the International Telecommunication Advisory Committee *Summary:* The International Telecommunication Advisory Committee will meet on September 26, 2006 at 10 am to prepare positions for the next meeting of the Inter-American Telecommunication Commission (CITEL) Permanent Consultative Committee II (PCCII) October 17-20, 2006 in Caracas, Venezuela. Members of the public will be admitted to the extent that seating is available, and may join in the discussions, subject to the instructions of the Chair. The International Telecommunication Advisory Committee
(ITAC)will meet on September 26, 2006 at 10 a.m.; the meeting location has not yet been established. The meeting will review contributions to the forthcoming CITEL PCCII meeting as well as discuss reports on the World Radiocommunication Conference. Information on the meeting location and conference bridge information may be obtained by calling the ITAC Secretariat at 202 647-3234. Dated: August 29, 2006. Anne Jillson, Foreign Affairs Officer, International Communications & Information Policy, Department of State. [FR Doc. E6-14646 Filed 9-1-06; 8:45 am] BILLING CODE 4710-07-P DEPARTMENT OF TRANSPORTATION Corridors of the Future Program AGENCY: Department of Transportation (DOT). ACTION: Notice; request for applications. SUMMARY: The purpose of this notice is to solicit applications from interested parties to participate in the Corridors of the Future Program
(CFP)selection process. The goal of the CFP is to accelerate the development of multi-State transportation Corridors of the Future for one or more transportation modes, by selecting up to 5 major transportation corridors in need of investment for the purpose of reducing congestion. The Federal government has an important role to play in facilitating and accelerating multi-State investments. States are encouraged to work together and with private sector partners to develop multi-State corridor proposals to advance project development and seek alternative financial opportunities. CFP projects may augment an existing transportation corridor or may develop entirely new facilities. Applications will be submitted in a two-step process. In the first step, the Applicant will submit a Corridor Proposal (Proposal) containing general information about the proposed Corridor project (Corridor). A Proposal may be submitted by one State, multiple States, or a private sector entity, and at this stage does not require the concurrence of all affected States. After the Proposal has been reviewed, the Applicant may be asked to proceed to the second step in the process by submitting an Application with more detailed information about the project. DATES: Proposals must be received on or before October 23, 2006. The due date for Applications will be April 2, 2007. ADDRESSES: Interested parties should submit Proposals to Mr. James D. Ray, Chief Counsel, Federal Highway Administration, 400 Seventh Street, SW., Room 4213, Washington, DC 20590 or electronically to *corridorsofthefuture@dot.gov.* FOR FURTHER INFORMATION CONTACT: Mr. Michael W. Harkins, Attorney-Advisor,
(202)366-4928 ( *michael.harkins@dot.gov* ), or Ms. Alla C. Shaw, Attorney-Advisor,
(202)366-1042 ( *alla.shaw@dot.gov* ), Federal Highway Administration, Office of the Chief Counsel, 400 Seventh Street, SW., Room 4230, Washington, DC 20590. Office hours are from 7:30 a.m. to 5 p.m., e.t., Monday through Friday, except Federal holidays. SUPPLEMENTARY INFORMATION: Electronic Access and Filing An electronic copy of this document may also be downloaded from the Office of the Federal Register's home page at: *http://www.archives.gov* and the Government Printing Office's Web page at: *http://www.access.gpo.gov/nara.* Background The DOT is establishing a Corridors of the Future selection process to accelerate the development of multi-State, and possibly multi-use, transportation corridors to help reduce congestion. The DOT is seeking applications from either public or private sector entities to identify and advance multi-State transportation corridor investments that can alleviate current or forecasted congestion. Through this selection process, the DOT will select up to 5 Corridors in need of investment. Congestion is one of the single largest threats to America's economic prosperity and way of life. Former Secretary of Transportation Norman Y. Mineta framed the problem earlier this year: If power blackouts drained billions of dollars from the economy each year, it would be considered a crisis of unacceptable proportion. Yet many accept the fact that Americans squander 3.7 billion hours and 2.3 billion gallons of fuel each year sitting in traffic jams and waste $9.4 billion as a result of airline delays. Even worse, congestion takes a major bite out of our day—time that could be spent with families, friends, and neighbors. 1 1 Remarks made by Secretary Mineta to the National Retail Federation, May 16, 2006. Congestion now draws close to $200 billion per year from the U.S. economy. In an effort to combat the growing problems of congestion, Secretary Mineta launched the DOT's “National Strategy to Reduce Congestion on America's Transportation Network” in May 2006. The Strategy consists of a 6-point plan, including the Corridors of the Future selection process, designed both to reduce congestion in the short-term and to build the foundation for successful longer-term congestion reduction efforts. 2 2 In addition to the Corridors of the Future selection process, the “National Strategy to Reduce Congestion on America's Transportation Network” also includes the following five areas of emphasis:
(1)Relieve urban congestion;
(2)Unleash private sector investment resources;
(3)Promote operational and technological improvements;
(4)Target major freight bottlenecks and expand freight policy outreach; and
(5)Accelerate major aviation capacity projects and provide a future funding framework for the aviation system. Objectives The primary objectives of the CFP are to: A. Promote innovative national and regional approaches to congestion mitigation. B. Address major transportation investment needs. C. Illustrate the benefits of alternative financial models that involve private sector capital. D. Promote a more efficient environmental review and project development process. E. Develop corridors that will increase freight system reliability and enhance the quality of life for U.S. citizens. F. Demonstrate the viability of a transportation investment model based on sound economics and market principles. Application Process The application process consists of two phases: The submission of a Corridor Proposal followed by an invitation to submit a formal application. Each phase is discussed below. A. Phase 1: Corridor Proposal A State, multiple States or a private entity (Applicant) interested in the CFP should submit a Corridor Proposal to the DOT. The length of the Proposal should not exceed ten single-spaced pages. The Proposal should, in general terms, describe the Corridor, including its purpose, location, preliminary design features, rough estimate of capital cost, proposed delivery schedule, likely financing mechanism(s), traffic trends (on competing corridors if a new corridor is being proposed), and information about the status of agreement among the States to advance the proposed Corridor. Private entities should consult with relevant State transportation agencies and Governors' offices prior to submitting a Proposal. Corridor proposals may include new capacity development or upgrades/extensions of existing capacity, but the proposals should involve two or more States. The Applicant should also state whether the proposed Corridor will cross any Federal or Indian lands. To the extent the proposed Corridor is already in development, the Applicant should describe broadly the remaining activities that must be undertaken. The Applicant may be requested to submit additional information if more information is needed at this stage. The Applicant should estimate the length of time needed before it would have the necessary information and concurrences needed to submit a detailed Corridor Application, discussed below. The deadline for submitting a Proposal is October 23, 2006. If an Applicant submits a Proposal after the October 23 deadline, the Proposal will be considered to the extent practicable but will not necessarily be eligible to advance to the next step in the Application process during the first phase. If a Proposal is accepted for the final competition, the Applicant will be invited to submit a Corridor Application, discussed below. The DOT intends to announce the first phase of Corridor Proposals for further consideration by the middle of November 2006. B. Phase 2: Corridor Application If an Applicant is invited to submit a Corridor Application (Application) for the CFP, the Application must be received not later than April 2, 2007, unless an extension is granted in writing by the FHWA Chief Counsel at his discretion in response to a written request for an extension. All Federal, State, and Indian tribal governments that own property which will be directly impacted by the proposed Corridor should concur in the Application. The DOT intends to announce the initial CFP Corridors approved for further development after spring 2007. The Application should address each of the following: 1. Physical Description The Application should include a detailed description of the proposed interstate transportation Corridor, including a map detailing the Corridor and its connection to existing transportation infrastructure. 2. Congestion Reduction The proposed Corridor may address current or future congestion in any transportation mode(s). For each mode included in the Application, the Applicant should describe where and how the proposed Corridor would
(i)reduce current congestion levels or
(ii)address future expected congestion based on projected travel trends and demographic changes in the proposed Corridor. The Applicant should discuss the national impact of the Corridor on freight and/or traffic congestion. The congestion reduction discussion should include all relevant data related to the proposed congestion relief benefits of the Corridor. 3. Mobility Improvements The Application should describe how the Corridor would provide increased mobility of people and freight. Whether the proposed Corridor is on a new or existing alignment, the Application should explain how transportation technologies would be used to benefit users by reducing congestion and enhancing the mobility and efficiency of the proposed Corridor. Examples of mobility improvements include the use of intelligent transportation systems, traffic conditions monitoring, computerized traffic control systems, traveler information systems, electronic toll collection, and open road tolling. 4. Economic Benefits and Support of Commerce The Application should explain how the proposed Corridor would support U.S. economic growth. The Application should also provide an estimate of the percentage of overall Corridor traffic that is likely to be freight traffic. 5. Value to the Users of the Corridor The Application should describe the benefits of the proposed Corridor to its users. Potential benefits include: Reduced travel time; increased safety; faster and more convenient access to intermodal facilities, such as rail and port terminals; faster and more convenient access to terminals for commercial vehicles; environmental benefits; truck-only lanes; and increased travel speeds. 6. Innovations in Project Delivery and Finance The Application should highlight any innovative project delivery and financing features proposed for the Corridor. The Applicant should address the eligibility of the proposed project for credit assistance under the Transportation Infrastructure Finance Innovation Act (TIFIA) and Private Activity Bonds. 7. Exceptional Environmental Stewardship The Application should describe any proposed innovative methods for completing the environmental review process effectively, and/or any exceptional proposed measures for avoiding or mitigating air, noise, or water impacts, or impacts to environmental or cultural resources. 8. Finance Plan and Potential Private Sector Participation The Applicant should submit an initial plan that identifies potential sources of financing and the private sector's likely role. This may include proposals for private sector financial contribution to the proposed Corridor. Private sector participation can encompass a wide range of contractual arrangements by which public (Federal, State, or local) authorities and private entities collaborate in the financing, development, operation, and ownership of a transportation infrastructure project. Potential contractual arrangements for the Corridor include but are not limited to: a. Long-term concessions or franchise agreements; b. Design, Build, Operate and Maintain contracts; c. Design Build Finance Operate contracts; d. Build Own Operate contracts; and e. Design Build contracts. The Applicant should describe the efficiencies likely to result from private sector participation, as well as the process likely to be used to ensure robust competition among private financial entities 9. Proposed Project Time-Line The Application should include a proposed project time-line with estimated start and completion dates for major elements of the proposed Corridor such as: a. Development phase activities (planning, feasibility analysis, revenue forecasting, environmental review, preliminary engineering and design work, and other preconstruction activities); b. Construction, reconstruction, and/or rehabilitation activities; and c. Acquisition of real property (including land related to the project and improvements to land). The Application also should describe the results of any preliminary engineering or preconstruction activities done to date and relate it to the project time-line. CFP Development Agreement After a Corridor is accepted for administration under the CFP, the next major action would be to work with the coalition of States, municipalities, Indian tribal government(s), and Federal agencies (collectively referred to as the Coalition) to draft a CFP Development Agreement for the Corridor (CFPDA). The CFPDA would address the commitments of all parties to the Corridor (Federal, State, municipal and private) with respect to the financing, planning and design, environmental process, construction, operations, maintenance, and other components of the Corridor. The CFPDA would also identify the specific objectives of the Corridor and performance measures that would be used to evaluate the success of the Corridor in achieving these objectives. DOT Resources and Commitments To Expedite the Delivery of the Corridor If a Corridor is selected for participation in the CFP, the DOT will work with the Coalition to expedite the delivery of the Corridor. Potential DOT resources and commitments include: A. Coordination of a More Efficient Environmental Review Process Corridors selected for the CFP may request to be added to the Secretary of Transportation's list of high-priority transportation infrastructure projects under Executive Order 13274, “Environmental Stewardship and Transportation Infrastructure Project Review.” For these projects, Federal agencies shall to the maximum extent practicable expedite their reviews for relevant permits or other approvals, and take related actions as necessary, consistent with available resources and applicable laws. Information about Executive Order 13274 is available on the following Web site: *http://environment.fhwa.dot.gov/strmlng/index.asp.* B. Accelerated Review and Conditional Approval of Experimental Features Under the FHWA SEP-15 Process Special Experimental Project 15 (SEP-15) is designed to permit tests and experimentation in the project development process for title 23, United States Code projects. Potential areas of experimentation for CFP projects include commercialization of rights-of-way for new facilities, innovative finance, tolling and contracting requirements. More information about the SEP-15 program is available on the following Web site: *http://www.fhwa.dot.gov/ppp/index.htm.* The Department is considering further experimental programs that may apply to the approved Corridors. C. Expedited Commitment Process for TIFIA Credit Assistance The TIFIA program provides 3 forms of credit assistance—secured loans, loan guarantees, and standby lines of credit—for surface transportation projects of national or regional significance. Each Coalition seeking to incorporate TIFIA credit assistance as part of a Corridor finance plan can receive a preliminary TIFIA commitment under SEP-15. The DOT would work with each Coalition to establish a preliminary plan of finance incorporating TIFIA assistance. This preliminary commitment would expedite the loan review process to be undertaken should the Coalition's selected concessionaire seek TIFIA assistance. Information about the TIFIA credit program is available on the following Web site: *http://tifia.fhwa.dot.gov/.* D. Conditional Approval for Private Activity Bonds Upon application for private activity bonds
(PABs)under Section 11143 of the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU) (Pub. L. 109-59; Aug. 10, 2005), projects selected for the CFP may be granted conditional approval for PABs. Section 11143 amended the Internal Revenue Code
(IRC)by adding a new exempt highway category to section 142 of the IRC, “Qualified Highway or Surface Transportation Facilities.” Bonds issued to provide for construction of Qualified Highway or Surface Transportation Facilities must satisfy Internal Revenue Code requirements associated with exempt facilities. Private Activity Bonds are not subject to the general volume cap limitation for exempt facility bonds; however, they are subject to a nationwide $15 billion limitation that is allocated by the Secretary of Transportation. Subject to the project qualifying as an exempt highway or surface transportation facility project, the project's submission of a successful application for PAB authority, and subject to selection for the CFP, the Secretary will conditionally allocate a portion of the nationwide qualified highway or surface transportation limitation to a Corridor project to facilitate its financing and construction. E. Priority to Tolling Programs Projects selected for the CFP will be granted priority under the limited toll programs contained in the Intermodal Surface Transportation Efficiency Act of 1991 (ISTEA) (Pub. L. 102-240; Dec. 18, 1991), the Transportation Equity Act for the 21st Century (TEA-21) (Pub. L. 105-178; June 8, 1998), or SAFETEA-LU. Additionally, the DOT may consider using its experimental authority under SEP-15, or any other experimental programs that may apply, to grant flexibility with respect to tolling. F. Access to DOT Experts Coalitions accepted for the CFP will have access to DOT experts knowledgeable in the areas of planning, the environment, public-private partnerships, finance, construction, safety, operations, and asset management. G. Other Discretionary Funding The DOT will work with Applicant(s) to identify other possible discretionary funding sources. Authority: 49 U.S.C. § 101. Issued on: August 24, 2006. Maria Cino, Acting Secretary. [FR Doc. E6-14634 Filed 9-1-06; 8:45 am] BILLING CODE 4910-22-P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration Notice of Intent To Prepare an Environmental Impact Statement for the Southern Nevada Supplemental Airport, Clark County, NV, and To Conduct Public Scoping Meetings AGENCY: Federal Aviation Administration (FAA), Department of Transportation (DOT). ACTION: Notice of Intent to Prepare an Environmental Impact Statement and to Conduct Public Scoping Meetings. SUMMARY: The Federal Aviation Administration
(FAA)and the Bureau of Land Management
(BLM)are issuing this notice to the public that an Environmental Impact Statement
(EIS)will be prepared to consider the construction and operation of a new supplemental commercial service airport in southern Nevada. In accordance with Public Law 106-362, titled: *Ivanpah Valley Airport Public Lands Transfer Act* , the FAA, representing the Department of Transportation (DOT), and the BLM, representing the Department of the Interior (DOI), will serve as joint lead Federal agencies for the preparation of this EIS. The Clark County Department of Aviation (CCDOA), the sponsor of the project, has proposed to construct and operate a new supplemental commercial service airport (the Ivanpah Valley Airport) 30 miles south of the Las Vegas metropolitan area in the Ivanpah Valley (the Proposed Action) in order to ensure sufficient commercial service capacity for the metropolitan area. CCDOA propose that the new supplemental commercial service airport would be operational by the year 2017, and would supplement existing capacity at McCarran International Airport (McCarran Airport). CCDOA's proposal to construct a supplemental airport requires approval by the FAA. Such Federal action is subject to the National Environmental Policy Act
(NEPA)and requires preparation of an EIS, which will evaluate the environmental impacts of the proposed Ivanpah Valley Airport and other reasonable alternatives for meeting the aviation needs of southern Nevada. CCDOA has proposed to construct and operate a new supplemental commercial service airport in response to the need for supplemental commercial service to the Las Vegas metropolitan area. McCarran Airport, which is owned and operated by Clark County, is currently the primary commercial passenger and cargo airport that serves as a gateway to the Las Vegas metropolitan area and southern Nevada. The number of commercial service operations has increased substantially at McCarran Airport over the past decade, largely as a result of the rapid growth in tourism, convention business, and service industries associated with the gaming and entertainment industry in Las Vegas, as well as an increase in population. Forecasts predict continued growth in aircraft operations at rates significantly exceeding the national average. Although McCarran Airport will be able to accommodate passenger demand in the next few years with the planned expansion and development of new terminal facilities, parking lots, and roadways, FAA forecasts indicate that by the year 2015, activity at McCarran Airport will reach 706, 684 annual aircraft operations (takeoffs or landings), representing an approximate 15 percent increase over existing operations. Without additional airfield, roadway, and terminal capacity, this level of operations would result in unacceptable levels of congestion and delay. Therefore, additional airfield, roadway, and terminal facilities would be required to meet future operations and passenger demand in the region. FOR FURTHER INFORMATION CONTACT: Andrew M. Richards, Manager, Federal Aviation Administration, San Francisco Airports District Office, 831 Mitten Road, Room 210, Burlingame, CA 94010, Telephone:
(650)876-2778 and Jeffrey Steinmetz, Planning and Environmental Coordinator, Bureau of Land Management, Las Vegas Field Office, 4701 North Torrey Pines Drive, Las Vegas, NV 89130, Telephone:
(702)515-5097. Comments on the scope of the EIS should be submitted to the addresses above and must be postmarked no later than Monday, November 6, 2006. SUPPLEMENTARY INFORMATION: In the *Ivanpah Valley Airport Public Lands Transfer Act* , Congress directed the Bureau of Land Management (BLM), acting on behalf of the Secretary of the DOI, to transfer property in Ivanpah Valley, Nevada to Clark County for the purpose of developing an airport facility and related infrastructure. That transfer has been completed. In accordance with the *Ivanpah Valley Airport Public Lands Transfer Act* , should completion of the NEPA process lead to the determination that an airport should not be constructed at the site, it will be transferred back to BLM ownership. The *Ivanpah Valley Airport Public Lands Transfer Act* also directed the Departments of Transportation and Interior to prepare a joint EIS “with respect to initial planning and construction” prior to construction of an airport facility and related infrastructure on the proposed Ivanpah site. The FAA and BLM will prepare an EIS for what is being called the Southern Nevada Supplemental Airport. The EIS will address a range of alternatives that achieve the purpose and need and that are reasonable. The range of alternatives identified during the scoping process may include alternatives other than the Proposed Action. The alternatives may include, but are not limited to, expansion of McCarran Airport and use of other existing airports. The alternatives will also include a no-action scenario as required by NEPA. The FAA and BLM intend to use the preparation of this EIS to comply with applicable laws having public involvement requirements. Comments addressing your issues should be addressed to the listed contact persons and must be postmarked no later than Monday, November 6, 2006. *Public Scoping Meetings:* The FAA and BLM intend to conduct a scoping process to gather input from interested parties to help identify issues of concern associated with the Proposed Action. In addition to this notice, Federal, State, and local agencies, which have jurisdiction by law or have special expertise with respect to any potential environmental impacts associated with the Proposed Action, will be notified by letter of an agency scoping meeting. To notify the general public of the scoping process, a legal notice describing the Proposed Action will be placed in newspapers having general circulation in the project area. The newspaper notice will notify the public that scoping meetings will be held to gain their input concerning the Proposed Action, alternatives to be considered, and impacts to be evaluated. The public scoping meetings are scheduled for 5 to 8 p.m. on Tuesday, October 3, 2006 at Jean Airport Special Events Center, 23600 Las Vegas Boulevard South, Jean, NV; at 5 to 8 p.m. on Wednesday, October 4, 2006, at Panos Hall, 5300 South El Camino Road, Las Vegas, NV; and 10 a.m. to 12 p.m. on Thursday, October 5, 2006 at Panos Hall, 5300 South El Camino Road, Las Vegas, NV. An agency scoping meeting will be held specifically for governmental agencies on Thursday, October 5, 2006 at Panos Hall, 5300 South El Camino Road, Las Vegas, NV. The agency meeting will be held from 2 p.m. to 4 p.m. Further information about the EIS and the Proposed Action will be posted when available at the following Web site: *http://www.snvairporteis.com* . Written and oral comments will be accepted at each of the meetings, or can be mailed to the BLM and FAA contact for inclusion into the record. The purpose of the scoping meetings is to receive input from the public regarding the scope and process related to the EIS. Issued in Lawndale, California, on Tuesday, August 29, 2006. Brian Q. Armstrong, Acting Manager, Airports Division, Western-Pacific Region. [FR Doc. 06-7421 Filed 9-1-06; 8:45 am]
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Traces to 15 documents
7 references not yet in our index
  • 17 CFR 240.19
  • 15 USC 78
  • 79 Stat. 985
  • Pub. L. 109-59
  • Pub. L. 102-240
  • Pub. L. 105-178
  • Pub. L. 106-362
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cites case law
Notices
Notice of Reporting Requirements Submitted for OMB Review
U.S.C.§ 78s
U.S.C.§ 78c
U.S.C.§ 78f
C.F.R.§ 200.30-3
U.S.C.§ 77r
U.S.C.§ 552
C.F.R.§ 107.730
C.F.R.§ 107.50
Fed. Reg.Notices
Cite17 CFR 240.19
Cite15 USC 78
Stat.79 Stat. 985
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