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BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-54507; File No. SR-BSE-2006-36] Self-Regulatory Organizations; Boston Stock Exchange, Inc.; Notice of Filing of Proposed Rule Change and Amendment No. 1 Thereto Relating to the Market Opening Pilot Program for the Boston Options Exchange Facility September 26, 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 September 1, 2006, the Boston Stock Exchange, Inc.
(“BSE” or “Exchange”) filed with the Securities and Exchange Commission (“Commission”) the proposed rule change as described in Items I, II and III below, which Items have been prepared by the BSE. On September 18, 2006, the BSE 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 Amendment No. 1 replaced the original filing in its entirety.
I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The BSE is proposing to retroactively reinstate the pilot program related to market opening procedures on the Boston Options Exchange facility. 4 The pilot program expired on August 6, 2006. The BSE is proposing to retroactively reinstate the pilot program for the time period August 6, 2006 through September 1, 2006. The BSE does not propose to make any substantive changes to the pilot program rules.
The only change to be achieved by this rule filing is to retroactively reinstate the pilot program for the time period August 6, 2006 through September 1, 2006. 5 4 The BSE filed another proposed rule, SR-BSE-2006-37, in order to extend the market opening procedures pilot program from September 1, 2006 to August 6, 2007. *See* Securities Exchange Act Release No. 54467 (September 20, 2006). 5 The Commission has previously approved proposals to extend pilot programs on a retroactive basis when an extension was not filed prior to the expiration date. *See* Securities Exchange Act Release No. 50097 (July 27, 2004), 69 FR 46609 (August 3, 2004) (File No.
SR-NASD-2004-112). II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the BSE 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. The BSE 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 On August 6, 2006 the market opening procedures pilot program expired. The purpose of this proposed rule change is to retroactively reinstate the market opening procedures pilot program for the time period August 6, 2006 through September 1, 2006 so as to avoid an interruption in that pilot program. The BSE is not proposing any other changes to the market opening procedures pilot with this filing. 2.
Statutory Basis The basis under the Act for this proposed rule change is the requirement under Section 6(b) of the Act 6 in general, and Section 6(b)(5) of the Act 7 in particular, that an exchange have rules that are designed to prevent fraudulent and manipulative practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism for a free and open market and a national market system, and, in general, to protect investors and the public interest.
In particular, the proposed rule change will avoid an interruption of the pilot program which provides a quicker, more efficient, fair and orderly market opening process. 6 15 U.S.C. 78f(b). 7 15 U.S.C. 78f(b)(5). B. Self-Regulatory Organization's Statement on Burden on Competition The BSE does not believe that the proposed rule change, as amended, will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others The BSE did not receive any written comments on the proposed rule change, as amended.
III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Within 35 days of the date of publication of this notice in the **Federal Register** or within such longer period
(i)As the Commission may designate up to 90 days of such date if it finds such longer period to be appropriate and publishes its reasons for so finding or
(ii)as to which the self-regulatory organization consents, the Commission will: A. By order approve such proposed rule change, as amended; or B. Institute proceedings to determine whether the proposed rule change, as amended, 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-BSE-2006-36 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-BSE-2006-36. This file number should be included on the subject line if e-mail is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site ( *http://www.sec.gov/rules/sro.shtml* ). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for inspection and copying in the Commission's Public Reference Room. Copies of such filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-BSE-2006-36 and should be submitted on or before October 23, 2006. 8 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Market Regulation, pursuant to delegated authority. 8 Nancy M. Morris, Secretary. [FR Doc. E6-16164 Filed 9-29-06; 8:45 am] BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-54505; File No. SR-BSE-2006-40] Self-Regulatory Organizations; Boston Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Trade Information Submitted to the Exchange September 26, 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 September 15, 2006, the Boston Stock Exchange, Inc. (“BSE” or “Exchange”) filed with the Securities and Exchange Commission (“Commission”) the proposed rule change as described in Items I and II below, which Items have been prepared by the Exchange. The BSE has filed the proposed rule change, pursuant to Section 19(b)(3)(A) of the Act 3 and Rule 19b-4(f)(6) thereunder, 4 which renders the proposal effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b-4. 3 15 U.S.C. 78s(b)(3)(A). 4 17 CFR 240.19b-4(f)(6). I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend Section 15 (Audit Trail) of Chapter V of the Rules of the Boston Options Exchange (“BOX”) to delete the language that specifically references the two specific participant capacity codes and the three specific customer identification codes. The text of the proposed rule change is available on the BSE's Web site at *http://www.bostonstock.com* , at the principal office of the Exchange and in the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in Sections A, B, and C below of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange states that the proposed rule change mimics the Chicago Board Options Exchange (“CBOE”) Rule 6.51 5 and the International Securities Exchange, Inc. (“ISE”) Rule 712 6 and proposes to amend Section 15 (Audit Trail) of Chapter V of the BOX Rules to delete the language that specifically references the two specific participant capacity codes and the three specific customer identification codes. 7 5 *See* Securities Exchange Act Release No. 45226 (January 3, 2002), 67 FR 1383 (January 10, 2002) (SR-CBOE-2001-69). 6 *See* Securities Exchange Act Release No. 43795 (January 3, 2001),66 FR 2468 (January 11, 2001) (SR-ISE-00-21). 7 Currently, BOX Rules Chapter V, Section 15(b)(vi) and
(viii)state that order information submitted under BOX Rule Chapter V, Section 15 must include certain specific participant capacity codes and customer identification codes. Chapter V, Section 15 of the BOX Rules requires members to file with BOX order information in such form as may be prescribed by the Exchange. Among the “order information” that the rule requires to be marked on an order ticket 8 includes “participant capacity” and “customer identification.” The purpose of these marking requirements is primarily twofold. First, participant capacity codes and customer identification codes ensure that orders route to the proper exchange systems, provide the Boston Options Exchange Regulation LLC (“BOXR”) with a mechanism by which to surveil whether members are in fact marking orders correctly and provide BOX with customer information. Second, the marking requirements assist the Options Clearing Corporation (“OCC”) in the clearance of trades. 8 All order tickets are submitted to BOX in electronic form. BSE currently lists two participant capacity codes in Chapter V, Section 15(b)(vi) of the BOX Rules and three customer identification codes in Chapter V, Section 15(b)(viii) of the BOX Rules. 9 Because BOX's participant capacity codes and customer identification codes are specifically listed in its rules, each time BOX determines to add, delete, or change a participant capacity code or customer identification code, BSE must submit a rule filing to the Commission. This could require several separate rule filings if BOX decided to add participant capacity codes and customer identification codes at different times. 10 9 BOX currently uses the following participant capacity codes: (1)Order Flow Provider or
(2)Market Maker. *See* BOX Rules Chapter V, Section 15(b)(vi). BOX currently uses the following customer identification codes:
(1)Public Customer;
(2)Broker-dealer; or
(3)Market Maker. *See* BOX Rules Chapter V, Section 15(b)(viii). 10 Over the next few months, the Exchange anticipates adding several new identification codes to the BOX system. This could require the submission of several rule filings if all participant capacity and customer identification codes are not added at the same time. Accordingly, since Chapter V, Section 15(a) of the BOX Rules already provides that “each Options Participant shall submit order information in such form as may be prescribed by BOXR. * * *,” 11 BSE proposes to delete the language from Chapter V, Section 15(b)(vi) and
(viii)of the BOX Rules that references the two specific participant capacity codes and three specific customer identification codes. This change will have two primary effects. First, it would eliminate the need for BSE to submit a rule filing each time BOX adds, deletes or changes a participant capacity code or customer identification code. Second, and more importantly, it would allow BSE to continue to ensure that members submit requisite trade information, including participant capacity codes and customer identification codes, in an Exchange-dictated manner. BSE notes that the proposed change to Chapter V, Section 15(b)(vi) and
(viii)would not eliminate the requirement that members submit tickets with participant capacity codes and customer identification codes. Rather, this change simply eliminates the specific participant capacity codes and customer identification codes from Chapter V, Section 15(b)(vi) and
(viii)of the BOX Rules. Options Participants would still be required to submit orders with participant capacity codes and customer identification codes as may be prescribed by BOXR. 11 *See* BOX Rules Chapter V, Section 15(a). Upon approval of this filing, BSE will notify members of the current order marking requirements ( *i.e.* , valid participant capacity codes and customer identification codes) by regulatory circular. As such, each time BOX adds, deletes, or changes a participant capacity code or customer identification code, BSE will distribute a regulatory circular to the Options Participants apprising them of the change. BSE believes that this will ensure that BOX's Options Participants are aware of the applicable participant capacity codes and customer identification codes with which it must mark order tickets. 2. Statutory Basis The Exchange believes that the proposal is consistent with the requirements of Section 6(b) of the Act, 12 in general, and furthers the objectives of Section 6(b)(5) of the Act, 13 in particular, in that it is designed to promote just and equitable principles of trade, and to protect investors and the public interest. The Exchange believes that the proposed rule change would enhance BOX's ability to surveil for and investigate potential fraudulent and manipulative conduct. The Exchange further believes that, since the proposed rule change would enhance BOX's ability to conduct investigations and surveil for misconduct, it would protect investors and the public interest. 12 15 U.S.C. 78f(b). 13 15 U.S.C. 78f(b)(5). B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others The Exchange has neither solicited nor received comments on the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the proposed rule change:
(i)Does not significantly affect the protection of investors or the public interest;
(ii)does not impose any significant burden on competition; and
(iii)does not become operative prior to 30 days after the date of filing, or such shorter time as the Commission may designate if consistent with the protection of investors and the public interests, the proposed rule change has become effective pursuant to Section 19(b)(3)(A)(iii) of the Act 14 and Rule 19b-4(f)(6) thereunder. 15 14 15 U.S.C. 78s(b)(3)(A)(iii). 15 17 CFR 240.19b-4(f)(6). BSE requests that the Commission waive both the 30-day pre-operative period specified in Rule 19b-4(f)(6)(iii). 16 The Commission believes that waiving the 30-day pre-operative period is consistent with the protection of investors and public interest. BSE's proposed deletion of the language from Chapter V, Section 15(b)(vi) and
(viii)of the BOX Rules that references certain specific participant capacity and customer identification codes allows for greater Exchange flexibility in administering its order ticket marking rules while maintaining the underlying requirements. According to the Exchange, this change will eliminate the need for BSE to submit a rule filing each time BOX adds, deletes or changes a participant capacity code or customer identification code and will allow BSE to continue to ensure that members submit requisite trade information, including participant capacity codes and customer identification codes, in an Exchange-dictated manner. The change is also consistent with the approaches used by other self-regulatory organizations. 17 For these reasons, the Commission designates the proposal to be effective and operative upon filing with the Commission. 18 16 17 CFR 240.19b-4(f)(6)(iii). 17 *See* n. 5-6, supra. 18 For purposes only of waiving the 30-day operative delay, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. *See* 15 U.S.C. 78c(f). 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. 19 19 *See* Section 19(b)(3)(C) of the Act, 15 U.S.C. 78s(b)(3)(C). IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission's Internet comment form ( *http://www.sec.gov/rules/sro.shtml* ); or • Send an e-mail to *rule-comments@sec.gov.* Please include File Number SR-BSE-2006-40 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-BSE-2006-40. 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 offices of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-BSE-2006-40 and should be submitted on or before October 23, 2006. 20 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Market Regulation, pursuant to delegated authority. 20 Nancy M. Morris, Secretary. [FR Doc. E6-16165 Filed 9-29-06; 8:45 am] BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-54494; File No. SR-CHX-2006-23] Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; Order Approving Proposed Rule Change and Amendment No. 1 Thereto Regarding Amendments to the Exchange's Bylaws and Other Governance Changes September 25, 2006. I. Introduction On June 22, 2006, the Chicago Stock Exchange, Inc. (“CHX” 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 its bylaws and rules to make several governance changes. The CHX filed Amendment No. 1 to the proposed rule change on July 20, 2006. The proposed rule change, as amended, was published for comment in the **Federal Register** on August 3, 2006. 3 The Commission received no comments regarding the proposal. This order approves the proposed rule change, as amended. 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b-4. 3 Securities Exchange Act Release No. 54226 (July 27, 2006), 71 FR 44064 (“Notice”). II. Description of the Proposal CHX proposes changes to its bylaws to reflect the terms of an agreement with four firms (“Investor Firms”) 4 to invest in CHX Holdings, Inc., (“CHX Holdings”). 5 CHX proposes to amend its bylaws and rules to
(1)require the Exchange's Board of Directors (“Board”) to identify one position in each Board class as the “Subject to Petition
(STP)Participant Director,” with candidates for that position to be subject to a petition process involving the Exchange's participants;
(2)change the composition of the Exchange's Nominating & Governance Committee to include two public directors and two STP Participant Directors; and
(3)modify the Exchange's rules to confirm that each participant firm would need only one trading permit to conduct business on the Exchange. 4 Each investment represents a minority equity stake in CHX Holdings consisting of shares of CHX Holdings Series A Preferred Stock. 5 *See* Securities Exchange Act Release No. 51149 (Feb. 8, 2005), 70 FR 7531 (Feb. 14, 2005) (order approving Exchange's demutualization). As part of the demutualization, former CHX members received common stock in CHX Holdings and received CHX trading permits entitling them to maintain their access to the Exchange. In addition, other persons who satisfy the applicable requirements were granted the ability to obtain trading permits, regardless of whether they are shareholders in CHX Holdings. Persons who hold trading permits are now referred to as Exchange “participants.” For purposes of the Act, participants are considered to be members of the Exchange. *See* Rule 1.l of Article I of the CHX Rules. *See also infra* note 6. Governance Changes The CHX bylaws provide that the CHX Board currently consist of the Exchange's chief executive officer, seven public directors, and five participant directors. 6 The Board members are divided into three classes, with each class serving a three-year term. Under the terms of the agreements reached with the Investor Firms, the membership of the Board is to be reduced by one director, so that after the closing of the transactions, the Board would consist of the Exchange's chief executive officer, six public directors, and five participant directors. The agreements with the Investor Firms also require the Exchange to use its best efforts to place a representative of each of the Investor Firms on the CHX Board, filling four of the five participant director positions. The remaining participant director would not be affiliated with any of the Investor Firms. 6 *See* Article II, Section 2(c) of the Exchange's bylaws. A “public director” is a director who
(i)is not a participant in the Exchange, or an officer, managing member, partner or employee of an entity that is a participant,
(ii)is not an employee of the Exchange or any of its affiliates,
(iii)is not a broker or dealer or an officer or employee of a broker or dealer, or
(iv)does not have any other material business relationship with CHX Holdings or the Exchange (or with any of their affiliates) or with any broker or dealer. *See* Article II, Section 2(b) of the Exchange's bylaws. A “Participant Director” is a director who is a participant or an officer, managing member, or partner of an entity that is a participant. *Id.* An individual or entity is a participant in the Exchange if that individual or entity holds a trading permit issued by the Exchange. *Id.* STP Participant Directors Under the Exchange's existing bylaws, the Nominating & Governance Committee (“Committee”) identifies candidates to fill the Board positions that are up for election each year. 7 In identifying candidates for public director positions, the Committee typically meets to discuss candidates and provides its slate of nominees to the Exchange's sole stockholder, CHX Holdings, for election. 7 *See* Article II, Section 3(b) of the Exchange's bylaws. The process for identifying candidates for participant director positions, however, is more detailed and includes both a requirement that the Committee hold two open meetings with Exchange participants and a petition process that allows participants to add names to the Committee's initial slate. 8 Under this process, no later than 60 days prior to the date announced for the Exchange's annual shareholder meeting, the Committee's initial nominees for participant director positions are reported to the Exchange's Secretary, who then must promptly announce the nominees to the Exchange's participants. 9 Participants may identify other candidates for one or more of these positions by delivering to the Exchange's Secretary, at least 35 days prior to the date announced for the annual meeting of shareholders, a written petition, signed by at least ten participants, identifying additional candidates. 10 If one or more valid petitions are submitted, the Exchange conducts an election to confirm the participants' selections of nominees for the participant director positions. 11 8 *See* Article II, Section 3(d) of the Exchange's bylaws. 9 *See id.* 10 *See id.* 11 *See id.* Each participant has one vote with respect to each participant director position that is to be filled. The individuals having the largest number of votes are the final nominees, and the Nominating & Governance Committee must nominate these persons to fill the available positions. 12 This process is designed to provide Exchange participants with fair representation in the selection of Exchange directors. 13 12 *See* Article II, Section 3(b) and
(e)of the Exchange's bylaws. 13 *See* 15 U.S.C. 78f(b)(3) (requiring that the rules of an exchange assure a fair representation of its members in the selection of its directors and administration of its affairs). The Exchange proposes to amend its bylaws to require the Board to set aside one position in each Board class for an STP Participant Director, with the candidates for each of those positions to be subject to the petition process. The Exchange acknowledges that the proposal would reduce the number of participant directors whose elections are subject to this petition process, but maintains that it would still ensure that at least 20% of the Exchange's directors (on a Board of fifteen or fewer people) are selected in this manner. 14 In addition, by requiring that the Board identify one position in each of the three Board classes to be subject to the petition process, the proposal would allow participants an opportunity to select at least one participant director each year. 14 *See* Securities Exchange Act Release No. 50699 (Nov. 18, 2004), 69 FR 71126 (Dec. 8, 2004) (“SRO Governance Release”). In note 148 of the SRO Governance Release, the Commission states, among other things, that it has taken the position that the fair representation requirement could be satisfied if an exchange's rules provide that members constitute at least 20% of the individuals serving on an exchange's nominating committee. Composition of the Nominating & Governance Committee The Exchange's Nominating & Governance Committee currently is composed of six Board members—three participant directors and three public directors. 15 The Exchange proposes to reduce its size so that it consists of two public directors and two STP Participant Directors. 16 Under the proposal, at least one participant director who is not affiliated with any of the four Investor Firms will serve on the Committee by requiring that one of the STP Participant Directors on the Committee not be a representative of any of the Investor Firms. 15 *See* Article II, Section 3(a) of the Exchange's bylaws. 16 *See* proposed amendment to Article II, Section 3(a) of the Exchange's bylaws. Trading Permits Under the Exchange's existing rules, each participant firm or each person who is registered as a co-specialist, floor broker, or market maker for a participant firm must hold a valid trading permit. 17 The Exchange proposes to change this requirement so that each participant firm must hold a valid trading permit, but individuals who serve as co-specialists, floor brokers, and market makers for a firm are no longer subject to the requirement. 18 Persons who serve in these capacities would continue to be required to register with the Exchange. 17 *See* Article II, Rule 2(a). 18 *See* Article VI, Rule 2(b)(7) (replacing the concept of a firm's “nominee” with a specific reference to persons serving as co-specialists, market makers or floor brokers). III. Discussion After careful review, the Commission finds that the proposed rule change, as amended, is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange. 19 The Commission finds that the proposed rule change is consistent with Section 6(b)(5) of the Act, 20 which requires that the rules of an exchange be designed, among other things, to prevent fraudulent and manipulative acts and practices; to promote just and equitable principles of trade; to remove impediments to and perfect the mechanism of a free and open market and a national market system; and, in general, to protect investors and the public interest. 19 In approving this proposal, the Commission has considered its impact on efficiency, competition and capital formation. 15 U.S.C. 78c(f). 20 15 U.S.C. 78f(b)(5). The Commission also finds that the proposed rule change is consistent with Section 6(b)(3) of the Act, 21 which requires that the rules of a national securities exchange assure the fair representation of its members in the selection of its directors and administration of its affairs, and provide that one or more directors shall be representative of issuers and investors and not be associated with a member of the exchange, broker, or dealer. The proposed rule change contemplates that three of the twelve members, or at least 20%, of the Exchange's Board, will be STP Participant Directors, one in each of the Board's three classes. 22 In addition, the Commission believes that the petition process for nominating STP Participant Directors affords Exchange participants a fair role in the selection of the Exchange's participant directors. Further, the Commission notes that because one class of the Board stands for election each year, and each Board class has one STP Participant Director, participants will be able to select an STP Participant Director each year. In addition, the filling of any STP Participant Director vacancies will be subject to the petition process. Accordingly, the Commission believes that the designation of three of the Exchange's twelve directors as STP Participant Directors, as well as the manner in which such directors will be nominated and elected, satisfies the fair representation requirement in Section 6(b)(3) of the Act. 23 21 15 U.S.C. 78f(b)(3). 22 *See* SRO Governance Release, *supra* note 14. 23 15 U.S.C. 78f(b)(3). The Exchange also proposes to reduce the size of the Nominating & Governance Committee from six to four members. The Commission notes that two of the four members, or 50%, of the Committee will be public directors, thus preserving the current percentage of public directors on the Committee. The Commission also notes that one of the two participant directors on the Committee is not a representative of any of the Investor Firms to preserve fair representation on the Committee. The Commission finds that the composition of the Committee is consistent with Section 6(b)(3) of the Act. 24 24 *Id.* The Exchange also proposes to change its rules so that only participants firms, and not individuals, must hold a trading permit in order to be able to trade on the Exchange. 25 The Exchange has stated that the reason for the proposed change is to reduce the number of trading permits to be more consistent with other exchanges that operate automated markets. The Commission has approved similar proposed rules for other markets, 26 and believes that the Exchange's proposal is similarly consistent with the Act. 25 *See supra* Part II (“One Trading Permit per Participant”). 26 *See, e.g.* , NYSE Arca Rule 1(n) (defining “ETP Holder”); NSX Rule 1.5E(1) (defining the term “ETP”); NSX Rule 1.5P(1) (defining “person associated with an ETP Holder”). Section 6(b)(3) of the Act also requires that one or more directors of an exchange shall be representative of issuers and investors and not be associated with a member of the exchange, broker, or dealer. 27 The proposed changes to the Exchange's Board provide that six of the twelve Exchange directors will be “public directors.” 28 The Commission notes that public directors still must comprise 50% of the Exchange's Board under the proposal. Accordingly, the Commission finds the proposed rule change consistent with the Act. 27 15 U.S.C. 78f(b)(3). 28 *See supra* note 6. Presently, the Exchange's Board is comprised of thirteen directors, seven of whom are public directors. IV. Conclusion *It is therefore ordered,* pursuant to Section 19(b)(2) of the Act, 29 that the proposed rule change (SR-CHX-2006-23), as amended, is approved. 29 15 U.S.C. 78s(b)(2). 30 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Market Regulation, pursuant to delegated authority. 30 Nancy M. Morris, Secretary. [FR Doc. E6-16113 Filed 9-29-06; 8:45 am] BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-54495; File No. SR-CHX-2006-27] Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; Order Approving Proposed Rule Change Relating to Retroactive Application of Participant Fees and Credits September 25, 2006. On August 10, 2006, the Chicago Stock Exchange, Inc. (“CHX” 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 make retroactive to February 9, 2005, the trading permit fee due to the Exchange if a CHX participant's trading permit is cancelled intra-year. The proposed rule change was published for comment in the **Federal Register** on August 23, 2006. 3 The Commission received no comments regarding the proposal. 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b-4. 3 *See* Securities Exchange Act Release No. 54323 (August 16, 2003), 71 FR 49495. 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. 4 In particular, the Commission finds that the proposed rule change is consistent with Section 6(b)(4) of the Act, 5 which requires that the rules of an exchange provide for the equitable allocation or reasonable dues, fees and other charges among its members and other persons using its facilities. 4 In approving this proposed rule change, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. *See* 15 U.S.C. 78c(f). 5 15 U.S.C. 78f(b)(4). The proposal to permit CHX participants to pay the Exchange the lesser of $2,000 or the remaining balance of the annual trading permit fee if cancelled intra-year originally became effective on October 24, 2005. 6 The Exchange intended but did not request retroactive application of this amended Fee Schedule when the rule change was originally filed with the Commission. The Exchange believes that CHX participants who terminated their permits intra-year are entitled to a refund. Further, the Exchange has been reserving funds for such remuneration. The Commission therefore finds that it is appropriate to make retroactive to February 9, 2005, the Fee Schedule change as described above. 6 * See* Securities Exchange Act Release No. 52815 (November 21, 2005), 70 FR 71572 (November 29, 2005) (SR-CHX-2005-31). *It is therefore ordered,* pursuant to Section 19(b)(2) of the Act, 7 that the proposed rule change (SR-CHX-2006-27) be, and it hereby is, approved. 7 15 U.S.C. 78s(b)(2). 8 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Market Regulation, pursuant to delegated authority. 8 Nancy M. Morris, Secretary. [FR Doc. E6-16114 Filed 9-29-06; 8:45 am] BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-54487; File No. SR-FICC-2005-17] Self-Regulatory Organizations; Fixed Income Clearing Corporation; Order Approving Proposed Rule Change Relating to Assumption of Blind Brokered Fails by Its Government Securities Division September 22, 2006. I. Introduction On September 30, 2005, the Fixed Income Clearing Corporation (“FICC”) filed with the Securities and Exchange Commission (“Commission”) and on November 28, 2005, amended proposed rule change SR-FICC-2005-17 pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”). 1 Notice of the proposal was published in the **Federal Register** on March 8, 2006. 2 On August 15, 2006, FICC filed an amendment to the proposed rule change. 3 No comment letters were received. For the reasons discussed below, the Commission is approving the proposed rule change. 1 15 U.S.C. 78s(b)(1). 2 Securities Exchange Act Release No. 53396 (March 2, 2006), 71 FR 11694. 3 The August 15, 2006, amendment, as noted below, is not substantive and did not require republication of notice. II. Description The purpose of the proposed rule change is to clarify the practice of the Government Securities Division (“GSD”) of FICC of assuming certain blind brokered repo fails and of obtaining financing as necessary in connection with such assumptions. The settlement of the start leg of a same-day starting repo has always been and continues to be processed outside of the GSD. In the evening of the day of a same-day starting brokered repo, FICC will assume responsibility from the broker for the settlement of such start leg if the repo dealer has not delivered securities to the broker to start the repo ( *i.e.* , the start leg has failed). This may involve FICC's receipt of securities from the repo dealer for redelivery to the reverse repo dealer or FICC's netting or pairing off of the settlement obligation arising from the start leg against the settlement obligation arising from the close leg of the same or another repo. FICC will also assume a blind brokered repo fail that arises in the close leg of a blind brokered repo transaction. For example, if the start leg of the transaction settles outside of FICC in normal course but one side of the close leg does not compare (for any reason that would cause a trade to not compare such as the erroneous submission of trade data), the broker will have a net settlement position at FICC rather than netting flat. If that transaction fails to settle, FICC will assume the broker's fail. FICC assumes the fails in these instances in order to decrease risk to itself and to its members. 4 By assuming the fail, FICC removes the broker, which acts as an intermediary and which expects to net out of every transaction and not have a settlement position, from the settlement process. 5 FICC is therefore adding a provision to its Rules to expressly provide for its practice of assuming blind broker repo fails and therefore to make its Rules consistent with its current and longstanding practice. 6 4 FICC has engaged in the practice of assuming broker fails since the inception of its blind brokered repo service. 5 FICC filed its August 15, 2006, amendment to the proposed rule change to make explicit its policy that in all cases where FICC assumes a fail from a broker, the counterparty remains responsible for its obligations with respect to the transaction. 6 Specifically, new Section 5, “Assumption of Blind Brokered Fails,” is being added to GSD Rule 19. In the assumption of such broker fails, the need for financing might arise, such as in the situation where the repo dealer delivers securities near the close of the securities Fedwire and the broker is unable to redeliver them to the reverse repo dealer. The GSD's Rules already contain a provision, Section 8 of Rule 12, that addresses the GSD's need to obtain financing in general. This provision contemplates the need for financing in order to allow the GSD to facilitate securities settlement generally. It is important to note that such financing is part of the GSD's normal course of business, and the GSD's ability to obtain such financing is necessary for it to be able to complete securities settlement. Section 8 of Rule 12 provides that if FICC deems it appropriate to obtain financing to provide its securities settlement services, FICC may create security interests in eligible netting securities delivered by a netting member in order to obtain such financing. The provision requires that members not take any action to adversely affect this process. The provision also states that such security interests may be created to obtain financing in an amount greater than the obligation of a member to FICC relating to such eligible netting securities. Thus, clearing fund securities may also be used to collateralize such financing. Also, Section III.C of the GSD's fee structure provides the formula that the GSD uses to charge members for the cost of any financing obtained by GSD. FICC interprets Section 8 of Rule 12 and Section III.C. to apply to financing that might arise because of FICC's assumption of blind brokered fails. FICC does not believe that actual changes to this rule is necessary for this clarification. III. Discussion Section 17A(b)(3)(F) of the Act requires that the rules of a clearing agency be designed to promote the prompt and accurate clearance and settlement of transactions and to assure the safeguarding of securities and funds which are in the custody or control of the clearing agency or for which it is responsible. 7 The Commission finds that FICC's proposed rule change is consistent with this requirement because the change, which is designed to clarify FICC's practice of assuming failed blind brokered repo transactions, will facilitate the settlement of blind brokered repo fails and as such will facilitate the prompt and accurate clearance and settlement of these transactions. By facilitating the settlement of these fails, FICC will also reduce settlement risk, which will better enable it to assure the safeguarding of securities and funds which are in FICC's custody or control or for which it is responsible. 7 15 U.S.C. 78q-1(b)(3)(F). IV. Conclusion On the basis of the foregoing, the Commission finds that the proposed rule change, as amended, is consistent with the requirements of the Act and in particular Section 17A of the Act and the rules and regulations thereunder. *It is therefore ordered,* pursuant to Section 19(b)(2) of the Act, 8 that the proposed rule change, as amended, (File No. SR-FICC-2005-17) be and hereby 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. E6-16109 Filed 9-29-06; 8:45 am] BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-54500; File No. SR-NASDAQ-2006-025] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto Regarding Fees for the New Nasdaq Workstation and Weblink ACT September 25, 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 1, 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. Nasdaq amended the proposed rule change on September 20, 2006. 3 Pursuant to Section 19(b)(3)(A)(ii) of the Act 4 and Rule 19b-4(f)(2) 5 thereunder, Nasdaq has designated the proposed rule change as establishing or changing a member due, fee, or other charge, which renders the proposed rule change effective upon filing with the Commission. 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 *See* Amendment No. 1. The effective date of the original proposed rule change is August 1, 2006 and the effective date of the amendment is September 20, 2006. For purposes of calculating the 60-day abrogation period, the Commission considers the period to have commenced on September 20, 2006, the date Nasdaq filed Amendment No. 1. *See* Section 19(b)(3)(C) of the Act, 15 U.S.C. 78s(b)(3)(C). 4 15 U.S.C. 78s(b)(3)(A)(ii). 5 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 fees for the New Nasdaq Workstation (“NNW”) and Weblink ACT. Nasdaq will implement the proposed rule change on August 1, 2006. The text of the proposed rule change is available at the Commission's Public Reference Room, at Nasdaq, and at *http://www.nasdaq.com.* 6 6 Changes to the proposed rule text are marked to the rule text that appears in the electronic Nasdaq Manual found at *www.complinet.com/nasd.com* as further amended on an immediately effective basis by SR-NASDAQ-2006-024. Because the Nasdaq Workstation and Weblink ACT are also used with respect to the quotation, execution, and trade reporting systems operated by The Nasdaq Stock Market, Inc. (“Nasdaq Inc.”) with respect to non-Nasdaq securities, Nasdaq Inc. is also filing these proposed rule changes as a modification to NASD Rule 7010(f). *See* SR-NASD-2006-094. 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 Nasdaq is amending Rule 7015 to change fees associated with its web-based New Nasdaq Workstation (“NNW”) and Weblink ACT products. Since the NNW's inception as a replacement for the Nasdaq Workstation II (“NWII”) last year, the fee for the NNW has been $435 per user per month, plus $90 per month for data feeds included with the NNW, for a total cost of $525 per user per month. Nasdaq is now reducing the fee to $475 per user per month, including the cost of the data feeds provided with the NNW. The change is designed to enhance the competitiveness of the NNW in contrast to front-end applications provided by broker-dealers and service bureaus, and, as discussed below, also reflects decreasing demand for the product. Weblink ACT, also referred to as Nasdaq Workstation Post Trade, is a Web-based application used for submission of trade reports. As such, as Nasdaq begins to operate as a national securities exchange, Weblink ACT provides basic front-end access to the Trade Reporting Facility (“TRF”) operated by Nasdaq and the National Association of Securities Dealers, Inc. (“NASD”), 7 as well as access to ACT functionality still offered by Nasdaq Inc. under authority delegated by NASD. 7 Nasdaq expects that, consistent with current practice, most NASD members seeking access to the TRF would use a proprietary front-end system developed by the broker-dealer or a product offered by a service bureau. Weblink ACT is designed as a basic front-end system for low volume users. Since the introduction of NNW and Weblink ACT, a number of former NWII users have opted to move to Weblink ACT rather than NNW, reflecting a desire to use these Web-based products exclusively for trade reporting, rather than active trading. Accordingly, Nasdaq proposes to increase the comparatively low fees for Weblink ACT to ensure that, as between NNW and Weblink ACT, fees are allocated appropriately to allow recovery of Nasdaq's costs. Specifically, the current $150 fee for Weblink ACT users that report a daily average of 20 or fewer trades during a month is being raised to $200, while the $300 fee for higher volume users is being increased to $375. 2. Statutory Basis Nasdaq believes that the proposed rule change is consistent with the provisions of Section 6 of the Act, 8 in general, and with Section 6(b)(4) of the Act, 9 in particular, in that the proposed rule change 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 Nasdaq operates or controls. The proposed rule change reflects demand patterns for NNW and Weblink ACT and is designed to ensure that as between the products, fees are allocated appropriately to allow recovery of Nasdaq's costs. 8 15 U.S.C. 78f. 9 15 U.S.C. 78f(b)(4). 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, as amended. 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 proposed rule change has become effective pursuant to Section 19(b)(3)(A)(ii) of the Act 10 and Rule 19b-4(f)(2) thereunder, 11 in that the proposed rule change establishes or changes a member due, fee, or other charge. 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. 10 15 U.S.C. 78s(b)(3)(A)(ii). 11 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 Number SR-NASDAQ-2006-025 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-2006-025. 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-2006-025 and should be submitted on or before October 23, 2006. 12 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Market Regulation, pursuant to delegated authority. 12 Nancy M. Morris, Secretary. [FR Doc. E6-16115 Filed 9-29-06; 8:45 am] BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-54501; File No. SR-NASDAQ-2006-026] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Order Granting Accelerated Approval of Proposed Rule Change as Amended Regarding Pricing for Non-Members Using the New Nasdaq Workstation and Weblink ACT September 25, 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 1, 2006, The NASDAQ Stock Market LLC (“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. Nasdaq amended the proposed rule change on September 20, 2006. 3 The Commission is publishing this notice to solicit comments on the proposed rule change, as amended, from interested persons, and simultaneously granting accelerated approval of the proposed rule change, as amended. 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b-4. 3 *See* Amendment No. 1. I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change This proposed rule change relates to the pricing for non-Nasdaq members using Nasdaq's New Nasdaq Workstation (“NNW”) and Weblink ACT products. The proposal will apply to these non-members the same changes that Nasdaq is instituting for Nasdaq members in SR-NASDAQ-2006-025. Nasdaq seeks to implement this proposed rule change retroactively as of August 1, 2006. The text of the proposed rule change is available at the Commission's Public Reference Room, at Nasdaq, and at *http://www.nasdaq.com.* 4 4 Changes to the proposed rule text are marked to the rule text that appears in the electronic Nasdaq Manual found at *www.complinet.com/nasd.com* , as further amended on an immediately effective basis by SR-NASDAQ-2006-024 and SR-NASDAQ-2006-025. Because the NNW and Weblink ACT are also used with respect to the quotation, execution, and trade reporting systems operated by The Nasdaq Stock Market, Inc. (“Nasdaq Inc.”) with respect to non-Nasdaq securities, Nasdaq Inc. is also filing this proposed rule change as a modification to NASD Rule 7010(f). *See* SR-NASD-2006-095. 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. 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-NASDAQ-2006-025, Nasdaq amended Rule 7015 to change Nasdaq member fees associated with its Web-based NNW and Weblink ACT products. Since the NNW's inception as a replacement for the Nasdaq Workstation II (“NWII”) last year, the fee for the NNW has been $435 per user per month, plus $90 per month for data feeds included with the NNW, for a total cost of $525 per user per month. In SR-NASDAQ-2006-025, Nasdaq reduced the fee to $475 per user per month, including the cost of the data feeds provided with the NNW. The change is designed to enhance the competitiveness of the NNW in contrast to front-end applications provided by broker-dealers and service bureaus, and, as discussed below, also reflects decreasing demand for the product. Weblink ACT, also referred to as Nasdaq Workstation Post Trade, is a Web-based application used for submission of trade reports. As such, as the Nasdaq Exchange begins to operate as a national securities exchange, Weblink ACT provides basic front-end access to the Trade Reporting Facility (“TRF”) operated by Nasdaq and the NASD, 5 as well as access to ACT functionality still offered by Nasdaq Inc. under authority delegated by NASD. 5 Nasdaq expects that, consistent with current practice, most NASD members seeking access to the TRF would use a proprietary front-end system developed by the broker-dealer or a product offered by a service bureau. Weblink ACT is designed as a basic front-end system for low volume users. Since the introduction of NNW and Weblink ACT, a number of former NWII users have opted to move to Weblink ACT rather than NNW, reflecting a desire to use these Web-based products exclusively for trade reporting, rather than active trading. Accordingly, in SR-NASDAQ-2006-025, Nasdaq increased the comparatively low fees for Weblink ACT to ensure that, as between NNW and Weblink ACT, fees are allocated appropriately to allow recovery of Nasdaq's costs. Specifically, the current $150 fee for Weblink ACT users that report a daily average of 20 or fewer trades a month is being raised to $200, while the $300 fee for higher volume users is being increased to $375. Nasdaq is submitting this filing to apply the foregoing changes to non-Nasdaq members using the NNW and Weblink ACT. These non-members are comprised primarily of service bureaus, while in the case of Weblink ACT, they would also include NASD members that are not members of Nasdaq but that submit trade reports to the TRF. 2. Statutory Basis Nasdaq believes that the proposed rule change is consistent with the provisions of Section 6 of the Act, 6 in general, and with Section 6(b)(4) of the Act, 7 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 Nasdaq operates or controls. The proposed rule change applies to non-members that use NNW and Weblink ACT a fee change that is being implemented for Nasdaq members. Accordingly, the proposed rule change promotes an equitable allocation of fees between members and non-members using these services. 6 15 U.S.C. 78f. 7 15 U.S.C. 78f(b)(4). 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, as amended. 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-NASDAQ-2006-026 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-NASDAQ-2006-026. This file number should be included on the subject line if e-mail is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site ( *http://www.sec.gov/rules/sro.shtml* ). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for inspection and copying in the Commission's Public Reference Room. Copies of the filing also will be available for inspection and copying at the principal offices 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-2006-026 and should be submitted on or before October 23, 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 an exchange. 8 Specifically, the Commission believes that the proposed rule change is consistent with Section 6(b)(4) of the Act, 9 which requires that the rules of an exchange 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. 8 In approving the proposed rule change, the Commission has considered the proposed rule's impact on efficiency, competition and capital formation. *See* 15 U.S.C. 78c(f). 9 15 U.S.C. 78f(b)(4). The Commission notes that this proposal would permit the schedule for non-Nasdaq members to mirror the schedule applicable to Nasdaq members that became effective on August 1, 2006, pursuant to SR-NASDAQ-2006-025. The Commission finds good cause for approving the proposed rule change prior to the 30th day after the date of publication of the notice thereof in the **Federal Register** . The proposed fees for non-Nasdaq members are identical to those in SR-NASDAQ-2006-025, which implemented those fees for Nasdaq members and which became effective as of August 1, 2006. The Commission notes that the instant proposed rule change will promote consistency in Nasdaq's fee schedule by applying simultaneously the same pricing schedule for Nasdaq members and non-Nasdaq members alike. Therefore, the Commission finds that there is good cause, consistent with Section 19(b)(2) of the Act, to approve the proposed rule change, as amended, on an accelerated basis. V. Conclusion *It is therefore ordered,* pursuant to Section 19(b)(2) of the Act, that the proposed rule change (SR-NASDAQ-2006-026), as amended, be, and hereby is, approved on an accelerated basis. 10 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Market Regulation, pursuant to delegated authority. 10 Nancy M. Morris, Secretary. [FR Doc. E6-16117 Filed 9-29-06; 8:45 am] BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-54498; File No. SR-NASD-2006-095] Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Notice of Filing and Order Granting Accelerated Approval of Proposed Rule Change and Amendment No. 1 Thereto Regarding Fees for Non-NASD Member Subscribers to the New Nasdaq Workstation and Weblink ACT September 25, 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 1, 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. Nasdaq amended the proposed rule change on September 20, 2006. 3 The Commission is publishing this notice to solicit comments on the proposed rule change, as amended, from interested persons, and simultaneously granting accelerated approval of the proposed rule change, as amended. 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b-4. 3 *See* Amendment No. 1. I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change Nasdaq proposes to modify fees for non-NASD member subscribers to the New Nasdaq Workstation (“NNW”) and Weblink ACT. The proposed rule change will apply to these non-members the same changes that Nasdaq is instituting for members. 4 Nasdaq seeks to implement the proposed rule change retroactively as of August 1, 2006. The text of the proposed rule change is available at the Commission's Public Reference Room, at NASD, and at *http://www.nasd.com* . 5 4 *See* SR-NASD-2006-094. 5 Changes are marked to the rule text that appears in the electronic NASD Manual found at *http://www.nasd.com* , as modified on an immediately effective basis by SR-NASD-2006-094. Nasdaq is filing this proposed rule change because the NNW and Weblink ACT may be used in limited circumstances by service bureaus that are not NASD members with respect to the quotation, execution, and trade reporting systems operated by Nasdaq with respect to non-Nasdaq securities. The NASDAQ Stock Market LLC (“Nasdaq Exchange”) is also filing a comparable modification to Nasdaq Exchange Rule 7015. 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. 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-2006-094, Nasdaq amended Rule 7010 to change NASD member fees associated with its Web-based New Nasdaq Workstation (“NNW”) and Weblink ACT products. Since the NNW's inception as a replacement for the Nasdaq Workstation II (“NWII”) last year, the fee for the NNW had been $435 per user per month, plus $90 per month for data feeds included with the NNW, for a total cost of $525 per user per month. In SR-NASD-2006-094, Nasdaq reduced the fee to $475 per user per month, including the cost of the data feeds provided with the NNW. The change is designed to enhance the competitiveness of the NNW in contrast to front-end applications provided by broker-dealers and service bureaus, and, as discussed below, also reflects decreasing demand for the product. Weblink ACT, also referred to as Nasdaq Workstation Post Trade, is a Web-based application used for submission of trade reports. As such, as the Nasdaq Exchange begins to operate as a national securities exchange, Weblink ACT provides basic front-end access to the Trade Reporting Facility (“TRF”) operated by Nasdaq and the NASD, 6 as well as access to ACT functionality still offered by Nasdaq under authority delegated by NASD. 6 Nasdaq expects that, consistent with current practice, most NASD members seeking access to the TRF would use a proprietary front-end system developed by the broker-dealer or a product offered by a service bureau. Weblink ACT is designed as a basic front-end system for low volume users. Since the introduction of NNW and Weblink ACT, a number of former NWII users have opted to move to Weblink ACT rather than NNW, reflecting a desire to use these Web-based products exclusively for trade reporting, rather than active trading. Accordingly, in SR-NASD-2006-094, Nasdaq increased the comparatively low fees for Weblink ACT to ensure that, as between NNW and Weblink ACT, fees are allocated appropriately to allow recovery of Nasdaq's costs. Specifically, the current $150 fee for Weblink ACT users that report a daily average of 20 or fewer trades during a month is being raised to $200, while the $300 fee for higher volume users is being increased to $375. Nasdaq is filing this proposed rule change to apply the foregoing changes to non-NASD members subscribing to these products. 2. Statutory Basis Nasdaq believes that the proposed rule change is consistent with the provisions of Section 15A of the Act, 7 in general, and with Section 15A(b)(5) of the Act, 8 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. The proposed rule change applies to non-members a fee change that is being implemented for NASD members. Accordingly, the proposed rule change promotes an equitable allocation of fees between members and non-members using these services. 7 15 U.S.C. 78 *o* -3 8 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, as amended. 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-2006-095 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 NASD-2006-095. This file number should be included on the subject line if e-mail is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site ( *http://www.sec.gov/rules/sro.shtml* ). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for inspection and copying in the Commission's Public Reference Room. Copies of the filing also will be available for inspection and copying at the principal offices of 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 Number SR-NASD-2006-095 and should be submitted on or before October 23, 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. 9 Specifically, the Commission finds that the proposed rule change is consistent with Section 15A(b)(5) of the Act, 10 which requires that the rules of a 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. 9 In approving the proposed rule change, the Commission has considered the proposed rule's impact on efficiency, competition and capital formation. *See* 15 U.S.C. 78c(f). 10 15 U.S.C. 78 *o* -3(b)(5). The Commission notes that this proposal would permit the schedule for non-NASD members to mirror the schedule applicable to NASD members that became effective on August 1, 2006, pursuant to SR-NASD-2006-094. The Commission finds good cause for approving the proposed rule change, as amended, prior to the 30th day after the date of publication of the notice thereof in the **Federal Register** . The proposed fees for non-NASD members are identical to those in SR-NASD-2006-094, which implemented those fees for NASD members and which became effective as of August 1, 2006. The Commission notes that the instant proposed rule change will promote consistency in NASD's fee schedule by applying simultaneously the same pricing schedule for NASD members and non-NASD members alike. Therefore, the Commission finds that there is good cause, consistent with Section 19(b)(2) of the Act, to approve the proposed rule change on an accelerated basis. V. Conclusion *It is therefore ordered* , pursuant to Section 19(b)(2) of the Act, that the proposed rule change, as amended (SR-NASD-2006-095), be, and hereby is, approved on an accelerated basis. 11 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Market Regulation, pursuant to delegated authority. 11 Nancy M. Morris, Secretary. [FR Doc. E6-16166 Filed 9-29-06; 8:45 am] BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-54499; File No. SR-NASD-2006-094] Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 Thereto Regarding Fees for the New Nasdaq Workstation and Weblink ACT September 25, 2006. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the “Act”), 1 and Rule 19b-4 thereunder, 2 notice is hereby given that on August 1, 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 amended the proposed rule change on September 20, 2006. 3 Pursuant to Section 19(b)(3)(A)(ii) of the Act 4 and Rule 19b-4(f)(2) thereunder, 5 Nasdaq has designated this proposal as establishing or changing a member due, fee or other charge, which renders the proposed rule change effective upon filing with the Commission. 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 *See* Amendment No. 1. The effective date of the original proposed rule change is August 1, 2006 and the effective date of the amendment is September 20, 2006. For purposes of calculating the 60-day abrogation period, the Commission considers the period to have commenced on September 20, 2006, the date Nasdaq filed Amendment No. 1. *See* Section 19(b)(3)(A) of the Act, 15 U.S.C. 78s(b)(3)(A). 4 15 U.S.C. 78s(b)(3)(A)(ii). 5 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 fees for the New Nasdaq Workstation (“NNW”) and Weblink ACT. Nasdaq will implement the proposed rule change on August 1, 2006. The text of the proposed rule change is available at the Commission's Public Reference Room, at NASD, and at *http://www.nasd.com* . 6 6 Changes are marked to the rule text that appears in the electronic NASD Manual found at *http://www.nasd.com* . Nasdaq is filing this proposed rule change because the NNW and Weblink ACT are used with respect to the quotation, execution, and trade reporting system operated by Nasdaq with respect to non-Nasdaq securities. The NASDAQ Stock Market LLC (“Nasdaq Exchange”) is also filing a comparable modification to Nasdaq Exchange Rule 7015. 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 Nasdaq is amending Rule 7010 to change fees associated with its Web-based NNW and Weblink ACT products. Since the NNW's inception as a replacement for the Nasdaq Workstation II (“NWII”) last year, the fee for the NNW has been $435 per user per month, plus $90 per month for data feeds included with the NNW, for a total cost of $525 per user per month. Nasdaq is now reducing the fee to $475 per user per month, including the cost of the data feeds provided with the NNW. The change is designed to enhance the competitiveness of the NNW in contrast to front-end applications provided by broker-dealers and service bureaus, and, as discussed below, also reflects decreasing demand for the product. Weblink ACT, also referred to as Nasdaq Workstation Post Trade, is a Web-based application used for submission of trade reports. As such, as the Nasdaq Exchange begins to operate as a national securities exchange, Weblink ACT provides basic front-end access to the Trade Reporting Facility (“TRF”) operated by Nasdaq and NASD, 7 as well as access to ACT functionality still offered by Nasdaq under authority delegated by NASD. 7 Nasdaq expects that, consistent with current practice, most NASD members seeking access to the TRF would use a proprietary front-end system developed by the broker-dealer or a product offered by a service bureau. Weblink ACT is designed as a basic front-end system for low volume users. Since the introduction of NNW and Weblink ACT, a number of former NWII users have opted to move to Weblink ACT rather than NNW, reflecting a desire to use these Web-based products exclusively for trade reporting, rather than active trading. Accordingly, Nasdaq is proposing to increase the comparatively low fees for Weblink ACT to ensure that, as between NNW and Weblink ACT, fees are allocated appropriately to allow recovery of Nasdaq's costs. Specifically, the current $150 fee for Weblink ACT users that report a daily average of 20 or fewer trades during a month is being raised to $200, while the $300 fee for higher volume users is being increased to $375. Nasdaq is also amending Rule 7010(g), which has historically contained the fees for the trade reporting services of Nasdaq, to reflect the Nasdaq Exchange's commencing operations for trading of securities listed on the Nasdaq Exchange, the TRF's commencing operations for reporting of Nasdaq-listed securities, and Nasdaq's continued operation, for a transitional period, as the quotation and trade reporting facility of NASD for non-Nasdaq securities. Nasdaq is amending Rule 7010(g) to remove fees and credits associated with reporting of Nasdaq-listed stocks, which are now contained in the NASD Rule 7000B Series, as well as fees for risk management services now provided by the Nasdaq Exchange. During the transitional period before the Nasdaq Exchange begins to trade non-Nasdaq stocks, Rule 7010(g) continues to govern fees and credits for reporting of non-Nasdaq listed securities to the ACT system operated by Nasdaq. Accordingly, Nasdaq is amending the rule to eliminate fees for services that are no longer offered by Nasdaq, as well as removing references to the Nasdaq Market Center, a term that is no longer used to describe trade reporting services. Several other portions of the NASD Rule 7000 Series reference fees for services that, following the Nasdaq Exchange's operational date, will no longer be offered by NASD or Nasdaq. These provisions become inactive after August 1, 2005. NASD will file a cleanup proposed rule change to remove fees no longer charged by NASD at a later date. 2. Statutory Basis Nasdaq believes that the proposed rule change is consistent with the provisions of Section 15A of the Act, 8 in general, and with Sections 15A(b)(5) of the Act, 9 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 NASD operates or controls. The proposed rule change reflects demand patterns for NNW and Weblink ACT and is designed to ensure that as between the products, fees are allocated appropriately to allow recovery of costs. 8 15 U.S.C. 78 *o* -3. 9 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, as amended. 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 proposed rule change has become effective pursuant to Section 19(b)(3)(A)(ii) of the Act 10 and subparagraph (f)(2) of Rule 19b-4 thereunder, 11 because it establishes or changes a member due, fee, or other charge imposed by NASD. 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 10 15 U.S.C. 78s(b)(3)(A)(ii). 11 17 CFR 240.19b-4(f)(2). 12 *See* footnote 3, *supra* . IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission's Internet comment form ( *http://www.sec.gov/rules/sro.shtml* ); or • Send an e-mail to *rule-comments@sec.gov* . Please include File Number SR-NASD-2006-094 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-NASD-2006-094. 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 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 Number SR-NASD-2006-094 and should be submitted on or before October 23, 2006. 13 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Market Regulation, pursuant to delegated authority. 13 Nancy M. Morris, Secretary. [FR Doc. E6-16168 Filed 9-29-06; 8:45 am] BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-54491; File No. SR-NYSE-2005-09] Self-Regulatory Organizations; New York Stock Exchange, Inc. (n/k/a New York Stock Exchange LLC); Notice of Filing of Proposed Rule Change and Amendment Nos. 1 and 2 Thereto Relating to Rule 409 Regarding Statements of Accounts to Customers and Proposed New Rule 409A Regarding SIPC Disclosure September 22, 2006. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Exchange Act”) 1 and Rule 19b-4 thereunder, 2 notice is hereby given that on January 14, 2005, the New York Stock Exchange, Inc. (n/k/a New York Stock Exchange LLC) (“Exchange” or “NYSE”) filed with the Securities and Exchange Commission (“Commission” or “SEC”) the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. On December 13, 2005, the Exchange filed Amendment No. 1 to the proposed rule change. 3 On September 19, 2006, the Exchange filed Amendment No. 2 to the proposed rule change. 4 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 In Amendment No. 1, NYSE withdrew its proposal to amend NYSE Rule 409(a), which would have permitted institutional customers conducting a Delivery versus Payment and Receive versus Payment (“DVP/RVP”) business to opt out of receiving customer account statements. NYSE refiled this proposal in File No. SR-NYSE-2005-90. 4 In Amendment No. 2, NYSE proposed additional changes to NYSE Rule 409(a) and proposed new NYSE Rule 409A, which are discussed below. I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange is proposing to amend NYSE Rule 409(e) to require that each statement of account sent to a customer include a legend advising the customer to promptly report any inaccuracy or discrepancy in that person's account to his or her brokerage firm. If the account is subject to a clearing agreement pursuant to NYSE Rule 382, amended NYSE Rule 409(e) would require the legend to advise that the customer's notification be sent to both the introducing firm and the clearing firm. The legend also would need to advise the customer that he or she should re-confirm any oral communications with either the clearing or introducing firm in writing to further protect the customer's rights, including rights under the Securities Investor Protection Act (SIPA). The Exchange is also proposing to adopt a new rule, NYSE Rule 409A, which would require member organizations to advise each customer in writing, upon the opening of an account and at least annually thereafter, that he or she may obtain information from the Securities Investor Protection Corporation (SIPC). Proposed Rule 409A would require the written advisories to include SIPC's Web site address and telephone number, and, if the account is subject to a clearing agreement pursuant to NYSE Rule 382, the rule would permit its requirements to be delegated to either the introducing firm or the clearing firm. The text of the proposed rule change is set forth below. Additions are *italicized.* Deletions are [bracketed]. Rule 409 Statements of Accounts to Customers
(a)through (d)—No change.
(e)Each statement of account sent to a customer pursuant to this rule shall *include the following:* *(1)* [bear a] *A* legend [as follows] *that reads:* “A financial statement of this organization is available for your personal inspection at its offices, or a copy of it will be mailed upon your written request.” *
(2)A legend that advises customers to report promptly any inaccuracy or discrepancy in that person's account to his or her brokerage firm. If a customer's account is subject to a clearing agreement pursuant to Rule 382, the legend must advise that such notification be sent to both the introducing firm and the clearing firm. The legend must also advise the customer that any oral communications with either the introducing firm or the clearing firm should be re-confirmed in writing in order to further protect the customer's rights, including its rights under the Securities Investor Protection Act (SIPA). *
(f)through (g)—No change. Supplementary Material—No change. Rule 409A SIPC Disclosures *Member organizations must advise each customer in writing, upon the opening of an account and at least annually thereafter, that they may obtain information about the Securities Investor Protection Corporation (SIPC), including the SIPC Brochure, by contacting SIPC, and shall provide the Web site address and telephone number of SIPC. If a clearing agreement pursuant to Rule 382 exists, the requirements of this rule may be delegated to either the introducing firm or the clearing firm.* II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In filing the proposed rule change, the Exchange included statements concerning the purpose of, and basis for, the proposed rule change, as amended. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of Purpose of, and Statutory Basis for, the Proposed Rule Change
(1)Purpose Amendments to Rule 409(e) In response to recommendations by the U.S. General Accounting Office (the “GAO”), the Exchange proposes amendments to Rule 409(e) that would require customer account statements to bear a legend that advises customers to promptly notify their brokerage firm of any inaccuracy or discrepancy in the account statement. 5 The legend must also advise the customer that any oral communications with either the introducing firm or the clearing firm should be re-confirmed in writing in order to further protect the customer's rights, including its rights under the Securities Investor Protection Act (SIPA). This requirement is included to create a written record for the purpose of protecting customer interests. 6 In addition to heightening customer awareness regarding information reflected on their statements, the advisory will encourage customers to submit a written record of any possible unauthorized trading activity, unrecorded dividend payments, and unaccounted cash positions. The GAO deems this to be important because, in the event a firm goes into a liquidation administered by SIPC, SIPC and the trustee generally will assume that the firm's records are accurate unless the customer is able to prove otherwise. The Commission has approved a substantially similar rule change proposed by NASD. 7 5 *See* GAO, *Securities Investor Protection: Steps Needed to Better Disclose SIPC Policies to Investors* , GAO-01-653 (May 25, 2001). *See also* GAO-03-811 (July 11, 2003); GAO-04-848R Follow-Up on SIPC (July 9, 2004). GAO has since been renamed the Government Accountability Office. 6 NYSE Information Memo No. 98-16, dated April 4, 1998,states that oral complaints are reportable under Rule 351(d) (Reporting Requirements). The Exchange expects that oral customer complaints will be investigated and treated in the same manner as written complaints. 7 *See* Order Approving Proposed Rule Change Relating to Rule 2340 Concerning Customer Account Statements, Securities Exchange Act Release No. 54411 (Sept. 7, 2006). Proposed New Rule 409A Also, in response to the GAO's recommendations, and to further promote investor awareness, the Exchange proposes new Rule 409A, which would require member organizations to advise customers in writing, upon the opening of an account and at least annually thereafter, that they may obtain information from SIPC, including the SIPC Brochure, by contacting SIPC via its Web site or by telephone. The proposed rule would also require the written advisories to include the SIPC Web site address and telephone number. If a clearing agreement pursuant to Rule 382 exists, the requirements of this rule could be delegated to either the introducing firm or the clearing firm.
(2)Statutory Basis The Exchange believes that the proposed rule change is consistent with the requirements of the Exchange Act and the rules and regulations thereunder applicable to a national securities exchange, and in particular, with the requirements of Sections 6(b)(5) of the Exchange Act. 8 Section 6(b)(5) requires, among other things, that the rules of an exchange 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 national market system, and in general, to protect investors and the public interest. The Exchange believes the proposed rule change is designed to promote just and equitable principles of trade, perfect the mechanism of a free and open market, and protect investors because it will help investors understand procedures for preserving their rights in the event of erroneous or unauthorized transactions in their accounts. 8 *See* 15 U.S.C. 78f(b)(5). B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange believes that the proposal does not impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Exchange Act. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others The Exchange neither solicited nor received written comments on the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The Exchange is proposing an effective date of 180 days after SEC approval of the proposed amendments to Rule 409(e) and proposed new Rule 409A. This will give member organizations time to make necessary changes to their customer documentation and systems. Within 35 days of the date of publication of this notice in the **Federal Register** or within such longer period
(i)as the Commission may designate up to 90 days of such date if it finds such longer period to be appropriate and publishes its reasons for so finding or
(ii)as to which the Exchange consents, the Commission will:
(a)By order approve 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 Exchange Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission's Internet comment form ( *http://www.sec.gov/rules/sro.shtml* ); or • Send an e-mail to *rule-comments@sec.gov.* Please include File Number SR-NYSE-2005-09 on the subject line. Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-NYSE-2005-09. This file number should be included on the subject line if e-mail is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site ( *http://www.sec.gov/rules/sro/shtml* ). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for inspection and copying in the Commission's Public Reference Section, 100 F Street, NE., Washington, DC 20549. Copies of such filing also will be available for inspection and copying at the principal office of the NYSE. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submission should refer to File Number SR-NYSE-2005-09 and should be submitted on or before October 23, 2006. 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. E6-16112 Filed 9-29-06; 8:45 am] BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-54490; File No. SR-NYSEArca-2006-61] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Order Granting Accelerated Approval of Proposed Rule Change To Amend Existing Rules for Investment Company Units September 22, 2006. Pursuant to the provisions of 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 September 19, 2006, NYSE Arca, Inc. (the “Exchange”), through its wholly-owned subsidiary NYSE Arca Equities, Inc. (“NYSE Arca Equities”), filed with the Securities and Exchange Commission (the “Commission”) the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. The Commission is publishing this notice and order to solicit comments on the proposed rule change from interested persons and to approve the proposed rule change on an accelerated basis. 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b-4. I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange, through NYSE Arca Equities, proposes to amend Commentary .01(b)(1) to NYSE Arca Equities Rule 5.2(j)(3). The text of the proposed rule change is below. Proposed new language is italicized; proposed deletions are in brackets.
(b)Index Methodology and Calculation.
(1)The index underlying a series of Units will be calculated based on [either] the market capitalization, modified market capitalization, price, equal-dollar or modified equal-dollar weighting *or a* methodology *weighting components of the index based on any, some or all of the following: sales, cash flow, book value and dividends;* II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item III below. The Exchange has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange has adopted listing standards applicable to Investment Company Units (“Investment Company Units” or “ICUs”) that are consistent with the listing criteria currently used by other national securities exchanges, and trading standards pursuant to which the Exchange may either list and trade ICUs or trade such ICUs on the Exchange on an unlisted trading privileges (“UTP”) basis. 3 An Investment Company Unit is defined in NYSE Arca Equities Rule 5.1(b)(15) as a security representing an interest in a registered investment company that could be organized as a unit investment trust, an open-end management investment company or a similar entity. A registered investment company is registered under the Investment Company Act of 1940. 4 3 In October 1999, the Commission approved NYSE Arca Equities Rule 5.2(j)(3), which sets forth the rules related to listing and trading criteria for Investment Company Units. Securities Exchange Act Release No. 41983 (October 6, 1999), 64 FR 56008 (October 15, 1999)(SR-PCX-1998-29). In July 2001, the Commission also approved the Exchange's listing standards pursuant to Rule 19b-4(e) for listing and trading, or the trading pursuant to UTP, of Investment Company Units under NYSE Arca Equities Rule 5.2(j)(3). Securities Exchange Act Release No. 44551 (July 12, 2001), 66 FR 37716-01 (July 19, 2001)(SR-PCX-2001-14). 4 15 U.S.C. 80a. The “generic” listing criteria of Commentary .01 to NYSE Arca Equities Rule 5.2(j)(3) permits listing or trading pursuant to UTP of ICUs that satisfy such criteria in reliance upon Rule 19b-4(e) under the Act 5 , without a filing pursuant to Rule 19b-4 under the Act. 6 Commentary .01(b)(1) to NYSE Arca Equities Rule 5.2(j)(3) requires that if a series of ICUs approved for trading (including pursuant to UTP) on the Exchange in reliance upon Rule 19b-4(e) under the Act, 7 the index underlying the series of ICUs must be calculated based on either the market capitalization, modified market capitalization, price, equal-dollar or modified equal-dollar weighting methodology. 5 17 CFR 240.19b-4(e). 6 17 CFR 240.19b-4. 7 17 CFR 240.19b-4(e). According to the Exchange, the proposed rule change will specify one additional methodology. The Exchange proposes to amend Commentary .01(b)(1) to NYSE Arca Equities Rule 5.2(j)(3) to permit a series of ICUs to be listed or traded pursuant to UTP under the generic standards pursuant to Rule 19b-4(e) under the Act 8 if the underlying index for such series is weighted based on any, some or all of the following: sales, cash flow, book value, and dividends (“fundamentals weighted indexes”). 9 The Exchange states that the proposed rule change is based on the proposed rule change of the NASDAQ Stock Market LLC (“Nasdaq”). 10 8 *Id.* 9 In each instance, the index methodology will set forth the means for calculating sales, cash flow, book value, and dividends. 10 *See* Securities Exchange Act Release No. 54459 (September 15, 2006), 71 FR 55533 (September 22, 2006)(SR-NASDAQ-2006-035). “Sales” refers to the total of reported operating revenues less various adjustments to gross sales, such as returns, discounts, allowances, excise taxes, insurance charges, sales taxes, and value added taxes. In calculating the sales value, an index provider may opt to average the company's applicable figures for several prior years ( *e.g.* , five prior years as reflected in the company's Annual Report on Form 10-K). “Cash Flow” refers to operating income plus depreciation. For example, a manufacturer typically reports its operating income as its net sales plus other operating income minus the cost of goods sold and selling, general and administrative expenses. Depreciation expense for a manufacturer typically includes the depreciation that is directly related to or associated with tangible fixed assets and includes amortization of fixed assets that are part of plant, property and equipment, such as leased assets, leasehold improvements, and internal use software. For example, for a manufacturer depreciation, expense excludes amortization of intangible assets. For banks, financial companies and REITs, operating income refers to their total operating revenue minus total operating expenses. For REITs, depreciation expense includes depreciation relating to real estate property and includes: corporate fixed asset depreciation if not separated from property depreciation. In calculating cash flow, an index provider may opt to average the company's applicable figures for several prior years ( *e.g.* , five prior years as reflected in the company's Annual Report on Form 10-K). “Book Value” refers to a company's book value at the index review date. In accordance with accounting principles, book value generally means total common equity, which is derived from adding share capital and additional paid-in capital to retained earnings. In calculating book value, an index provider may opt to average the company's applicable figures for several prior years ( *e.g.* , five prior years as reflected in the company's Annual Report on Form 10-K). “Dividends” refers to total dividend distributions, including both special and regular dividends paid in cash. Generally, the total dividend amount that is declared to all classes of common shareholders includes regular cash, as well as special cash dividends, and excludes returns of capital and in-specie dividends. In calculating dividends, an index provider may opt to average the company's applicable figures for several prior years ( *e.g.* , five prior years as reflected in the company's Annual Report on Form 10-K). The Exchange believes that the fundamentals weighting methodology is a transparent methodology that is appropriately included in the ICU generic listing criteria as an alternative to traditional weighting techniques. According to the Exchange, fundamental indexing provides an investor with additional choices in selecting exchange-traded funds whose underlying index emphasizes financial factors that the investor may believe are important. The Exchange notes that products based on indexes using this methodology are already subject to the other requirements of the generic listing standards pursuant to Rule 19b-4(e). 11 The Exchange has requested accelerated approval in order to avoid delay in the listing and trading (including pursuant to UTP) of securities linked to fundamental weighted indexes. 12 11 17 CFR 240.19b-4(e). 12 Telephone conference on September 21, 2006 between Michael Cavalier, Assistant General Counsel, NYSE Group, Inc. and Mitra Mehr, Special Counsel, Division of Market Regulation, Commission (“September 21st Telephone Conference”). 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) 13 of the Act, in general, and furthers the objectives of Section 6(b)(5) 14 of the Act, in particular, in that it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, and to remove impediments to and perfect the mechanisms of a free and open market and a national market system. The Exchange believes that the proposed rule change should facilitate the listing and trading (including pursuant to UTP) of Investment Company Units that rely on an index using a fundamental weighting methodology and should thereby reduce the burdens on issuers and other market participants. 15 13 15 U.S.C. 78f(b). 14 15 U.S.C. 78f(b)(5). 15 September 21st Telephone Conference. B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others Written comments on the proposed rule change were neither solicited nor received. III. 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-NYSEArca-2006-61 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-NYSEArca-2006-61. 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 offices of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-NYSEArca-2006-61 and should be submitted on or before October 23, 2006. IV. Commission's Findings and Order Granting Accelerated Approval of the Proposed Rule Change After careful review, 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. 16 In particular, the Commission finds that the proposed rule change is consistent with Section 6(b)(5) of the Act, 17 which requires, among other things, that the rules of a national securities exchange be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, and to remove impediments to and perfect the mechanism for a free and open market and a national market system, and, in general, to protect investors and the public interest. 16 In approving this rule change, the Commission notes that it has considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 17 15 U.S.C. 78f(b)(5). The proposed rule change amends NYSE's existing generic listing standards pursuant to Rule 19b-4(e) 18 for Investment Company Units to provide that an eligible index may be calculated following the “fundamentals weighted” or “fundamental index” methodology. This index calculation methodology weights components based on one or more of the following: Sales, cash flow, book value, and dividends. 19 18 17 CFR 240.19b-4(e). 19 According to the NYSE, in each instance, the index methodology will set forth the means of calculating sales, cash flow, book value, and dividends and thus will be transparent. Including this index calculation methodology in NYSE's generic listing standards will provide investors with more investment choices by offering an alternative to the other index methodologies, such as capitalization-weighted ones. The Commission notes that the indexes that would be based on the fundamentals weighting methodology will already be subject to the requirements of the generic listing standards pursuant to Rule 19b-4(e) of the Act, 20 including trading volume and liquidity requirements. In addition, by amending its generic listing standards pursuant to Rule 19b-4(e) of the Act, 21 NYSE should reduce the time frame for listing and trading Investment Company Units that rely on an index utilizing a fundamentals weighting methodology. The proposed rule change should therefore facilitate the listing and trading (including on an unlisted trading privileges basis) of such securities and thereby reduce the burdens on issuers and other market participants. 20 17 CFR 240.19b-4(e). 21 *Id.* The Exchange has requested accelerated approval of the proposed rule change. The Commission finds good cause for approving the proposed rule change prior to the 30th day after the date of publication of the notice of filing in the **Federal Register** . The Commission believes the proposed rule change should provide investors with an alternative to the current index calculation methodologies. The proposed rule change is substantially identical to that approved for another exchange. 22 The Commission does not believe that the proposed rule change raises any novel regulatory issues. Therefore, the Commission finds good cause, consistent with Section 19(b)(2) of the Act, 23 to approve the proposed rule change on an accelerated basis. 22 *See* Securities Exchange Act Release No. 54459 (September 15, 2006), 71 FR 55533 (September 22, 2006) (SR-NASDAQ-2006-035). 23 15 U.S.C. 78s(b)(2). V. Conclusion *It is therefore ordered,* pursuant to Section 19(b)(2) of the Act, 24 that the proposed rule change (SR-NYSEArca-2006-61) is approved on an accelerated basis. 24 *Id.* For the Commission, by the Division of Market Regulation, pursuant to delegated authority. 25 25 17 CFR 200.30-3(a)(12). Nancy M. Morris, Secretary. [FR Doc. E6-16111 Filed 9-29-06; 8:45 am] BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-54493; File No. SR-NYSEArca-2006-46] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Order Granting Accelerated Approval of a Proposed Rule Change, and Amendment No. 1 Thereto, Relating to Generic Listing and Maintenance Standards for Broad-Based Index Options September 25, 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 25, 2006, the NYSE Arca, Inc. (“NYSE Arca” or “Exchange”) filed with the Securities and Exchange Commission (“Commission”) the proposed rule change as described in Items I and II below, which Items have been prepared principally by the NYSE Arca. On September 8, 2006, the Exchange filed Amendment No. 1. 3 The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons and is approving the proposal, as amended, on an accelerated basis. 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b-4. 3 In Amendment No. 1, which replaced the original filing in its entirety, the Exchange proposed to modify NYSE Arca Rule 5.15(a) to clarify that the position limit for broad-based index options is 25,000 contracts on the same side of the market, and made non-substantive changes to its proposed rule text. The Exchange also made clarifying changes in its description of the proposed rule change. I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend NYSE Arca Rule 5.12 to adopt new “generic” listing standards for broad-based index options pursuant to Rule 19b-4(e) under the Act. 4 The text of the proposed rule change is available on the NYSE Arca's Web site ( *http://www.tradearca.com* ), at the NYSE Arca's Office of the Secretary and at the Commission's Public Reference Room. 4 17 CFR 240.19b-4(e). II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the NYSE Arca 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 III below. The NYSE Arca has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend NYSE Arca Rule 5.12 to establish listing and maintenance standards, pursuant to Rule 19b-4(e) under the Act, 5 for broad-based index options. The proposal will allow the Exchange to list and trade, pursuant to Rule 19b-4(e) under the Act, 6 broad-based index options that meet the listing standards in NYSE Arca Rule 5.12(a). The listing standards require, among other things, that the underlying index be broad-based, as defined in NYSE Arca Rule 5.10(b)(23); that options on the index be a.m.-settled; that the index be capitalization-weighted, price-weighted, equal dollar-weighted, or modified capitalization-weighted; and that the index be comprised of at least 50 securities, all of which must be “NMS stocks,” as defined in Rule 600 of Regulation NMS. 7 In addition, NYSE Arca Rule 5.12(a) requires (among other things) that a specified percentage of the index's component securities meet certain minimum market capitalization and average daily trading volume requirements; that no single component account for more than 10% of the weight of the index and that the five highest weighted components represent no more than 33% of the weight of the index; that the index value be widely disseminated at least every 15 seconds; that index components comprising at least 80% of the weight of the index must be “options eligible” pursuant to NYSE Arca Rule 5.3; and that the Exchange have written surveillance procedures in place with respect to the index options. NYSE Arca Rule 5.12(a) also provides that non-U.S. index components that are not subject to a comprehensive surveillance sharing agreement between the Exchange and the primary market(s) trading the index components may comprise no more than 20% of the weight of the index. The Exchange represents that its surveillance procedures are adequate to properly monitor the trading of broad-based index options and that it intends to apply its existing surveillance procedures for index options to monitor trading in broad-based index options listed pursuant to NYSE Arca Rule 5.12(a). Additionally, the Exchange must reasonably believe that it has adequate system capacity to support the trading of any index options listed pursuant to NYSE Arca Rule 5.12(a). The Exchange also proposes to adopt NYSE Arca Rule 5.12(b), which establishes maintenance standards for broad-based index options listed pursuant to NYSE Arca Rule 5.12(a). 5 *Id.* 6 *Id.* 7 Rule 600 of Regulation NMS defines an “NMS stock” to mean “any NMS security other than an option.” An “NMS security” is “any security or class of securities for which transaction reports are collected, processed, and made available pursuant to an effective transaction reporting plan, or an effective national market system plan for reporting transactions in listed options.” 17 CFR 242.600. NYSE Arca also proposes to apply NYSE Arca Rule 6.8, as modified by NYSE Arca Rule 5.15, which establishes a position limit of 25,000 contracts on the same side of the market, 8 to broad-based index options listed pursuant to NYSE Arca Rule 5.12(a). 8 In this proposed rule change, NYSE Arca is proposing to amend NYSE Arca Rule 5.15(a) to clarify that the position limit of 25,000 contracts is on the same side of the market in the same underlying index. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act 9 in general, and furthers the objectives of Section 6(b)(5) of the Act 10 in particular, in that it is designed to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, to remove impediments to and perfect the mechanisms of a free and open market, and, in general, to protect investors and the public interest. 9 15 U.S.C. 78f(b). 10 15 U.S.C. 78f(b)(5). B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others No written comments were either solicited or 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, 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-NYSEArca-2006-46 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-NYSEArca-2006-46. 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 NYSE Arca. 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-NYSEArca-2006-46 and should be submitted on or before October 23, 2006. IV. Commission's Findings and Order Granting Accelerated Approval of the Proposed Rule Change After careful review, the Commission finds that the proposed rule change, as amended, is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange. 11 In particular, the Commission finds that the proposed rule change, as amended, is consistent with Section 6(b)(5) of the Act, 12 which requires, among other things, that the rules of a national securities exchange be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and open market and a national market system and, in general, to protect investors and the public interest. 11 In approving this proposal, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). 12 15 U.S.C. 78f(b)(5). Currently, to list options on a particular broad-based index, the NYSE Arca must file a proposed rule change with the Commission pursuant to Section 19(b)(1) of the Act and Rule 19b-4 thereunder. However, Rule 19b-4(e) provides that the listing and trading of a new derivative securities product by a self-regulatory organization (“SRO”) will not be deemed a proposed rule change pursuant to Rule 19b-4(c)(1) if the Commission has approved, pursuant to Section 19(b) of the Act, the SRO's trading rules, procedures, and listing standards for the product class that would include the new derivative securities product, and the SRO has a surveillance program for the product class. As described more fully above, the NYSE Arca proposes to establish listing standards pursuant to Rule 19b-4(e) for broad-based index options. The Commission's approval of the NYSE Arca's listing standards for broad-based index options will allow options that satisfy the listing standards to begin trading pursuant to Rule 19b-4(e), without constituting a proposed rule change within the meaning of Section 19(b) of the Act and Rule 19b-4, for which notice and comment and Commission approval is necessary. 13 The NYSE Arca's ability to rely on Rule 19b-4(e) to list broad-based index options that meet the requirements of NYSE Arca Rule 5.12(a) potentially reduces the time frame for bringing these securities to the market, thereby promoting competition and making new broad-based index options available to investors more quickly. 13 When relying on Rule 19b-4(e), the SRO must submit Form 19b-4(e) to the Commission within five business days after the SRO begins trading the new derivative securities product. *See* Securities Exchange Act Release No. 40761 (December 8, 1998), 63 FR 70952 (December 22, 1998) (File No. S7-13-98). The Commission notes that the NYSE Arca has represented that it has adequate trading rules, procedures, listing standards, and surveillance program for broad-based index options. NYSE Arca's existing index option trading rules and procedures will apply to broad-based index options listed pursuant to proposed NYSE Arca Rule 5.12(a). Additionally, existing NYSE Arca rules, including provisions addressing sales practices and margin requirements, also will apply to these options. In addition, as mentioned above, the NYSE Arca has established a position limit of 25,000 contracts on the same side of the market for broad-based index options listed pursuant to NYSE Arca Rule 5.12(a), by applying NYSE Arca Rule 6.8, as modified by NYSE Arca Rule 5.15, to such options. 14 NYSE Arca Rule 5.18(a) provides that the exercise limits for broad-based index options are equivalent to the position limits contained in NYSE Arca Rule 5.15. The Commission believes that the position and exercise limits should serve to minimize potential manipulation concerns. 14 *See supra* at note 3. The NYSE Arca represents that its surveillance procedures are adequate to properly monitor the trading of broad-based index options and that it intends to apply its existing surveillance procedures for index options to monitor trading in broad-based index options listed pursuant to NYSE Arca Rule 5.12(a). In addition, because proposed NYSE Arca Rule 5.12(a)(9) requires that each component of an index be an “NMS stock,” as defined in Rule 600 of Regulation NMS under the Act, each index component must trade on a registered national securities exchange or through The Nasdaq Stock Market, Inc. (“Nasdaq”). 15 Accordingly, the NYSE Arca will have access to information concerning trading activity in the component securities of an underlying index through the Intermarket Surveillance Group (“ISG”). 16 In addition, proposed NYSE Arca Rule 5.12(a)(10) provides that non-U.S. index components that are not subject to a comprehensive surveillance sharing agreement between the NYSE Arca and the primary market(s) trading the index components may comprise no more than 20% of the weight of the index. 17 The Commission believes that these requirements will help to ensure that the NYSE Arca has the ability to monitor trading in broad-based index options listed pursuant to NYSE Arca Rule 5.12(a) and in the component securities of the underlying indexes. 15 Recently, the Commission approved the application of The NASDAQ Stock Market LLC, a subsidiary of Nasdaq, to become a registered national securities exchange. *See* Securities Exchange Act Release No. 53128 (January 13, 2006), 71 FR 3550 (January 23, 2006). At the time of the Commission's consideration of this matter, Nasdaq is still operating as a subsidiary of the National Association of Securities Dealers (“NASD”), a registered national securities association for certain securities. 16 The ISG was formed on July 14, 1983 to, among other things, coordinate more effectively surveillance and investigative information sharing arrangements in the stock and options markets. All of the registered national securities exchanges and NASD are members of the ISG. In addition, futures exchanges and non-U.S. exchanges and associations are affiliate members of the ISG. 17 However, such non-U.S. index components, as “NMS stocks,” would be registered under Section 12 of the Act and listed on a national securities exchange where there is last sale reporting. The Commission believes that the requirements in the proposed NYSE Arca Rules regarding, among other things, the minimum market capitalization, trading volume, and relative weightings of an underlying index's component stocks are designed to ensure that the markets for the index's component stocks are adequately capitalized and sufficiently liquid, and that no one stock dominates the index. In addition, as mentioned above, proposed NYSE Arca Rule 5.12(a)(1) requires that the underlying index be “broad-based,” as defined in NYSE Arca Rule 5.10(b)(23). 18 The Commission believes that these requirements minimize the potential for manipulating the underlying index. 18 NYSE Arca Rule 5.10(b)(23) defines “broad-based index” to mean “an index designed to be representative of a stock market as a whole or of a range of companies in unrelated industries.” The Commission believes that the requirement in proposed NYSE Arca Rule 5.12(a)(11) that the current index value be widely disseminated at least once every 15 seconds by the Options Price Reporting Authority, the Consolidated Tape Association, the Nasdaq Index Dissemination Service or one or more major market data vendors 19 during the time an index option trades on the NYSE Arca should provide transparency with respect to current index values and contribute to the transparency of the market for broad-based index options. In addition, the Commission believes, as it has noted in other contexts, that the requirement in proposed NYSE Arca Rule 5.12(a)(2) that an index option be settled based on the opening prices of the index's component securities, rather than on closing prices, could help to reduce the potential impact of expiring index options on the market for the index's component securities. 20 19 The NYSE Arca stated that “ `[m]ajor market data vendors’ for the purposes of NYSE Arca Rule 5.12(a)(11) includes, but is not limited to, securities information vendors such as Bloomberg and Reuters.” 20 *See* , *e.g.* , Securities Exchange Act Release No. 30944 (July 21, 1992), 57 FR 33376 (July 28, 1992) (order approving a Chicago Board Options Exchange, Incorporated (“CBOE”) proposal to establish opening price settlement for S&P 500 Index options). The Commission finds good cause for approving the proposed rule change prior to the 30th day after the date of publication of the notice of filing in the **Federal Register** . The Exchange has requested accelerated approval of the proposed rule change. The proposal implements listing and maintenance standards and position and exercise limits for broad-based index options substantially identical to those recently approved for the Philadelphia Stock Exchange, Inc., the International Securities Exchange, Inc., the American Stock Exchange LLC, and the CBOE. 21 The Commission does not believe that the Exchange's proposal raises any novel regulatory issues. Therefore, the Commission finds good cause, consistent with Section 19(b)(2) of the Act, 22 to approve the proposed rule change, as amended, on an accelerated basis. 21 *See* Securities Exchange Act Release No. 54158 (July 17, 2006), 71 FR 41853 (July 24, 2006) (SR-Phlx-2006-17); Securities Exchange Act Release No. 52578 (October 7, 2005), 70 FR 60590 (October 18, 2005) (SR-ISE-2005-27); Securities Exchange Act Release No. 52781 (November 16, 2005), 70 FR 70898 (November 23, 2005) (SR-Amex-2005-069); Securities Exchange Act Release No. 53266 (February 9, 2006), 71 FR 8321 (February 16, 2006) (SR-CBOE-2005-59). 22 15 U.S.C. 78s(b)(2). V. Conclusion *It is therefore ordered,* pursuant to Section 19(b)(2) of the Act, 23 that the proposed rule change (SR-NYSEArca-2006-46), as amended, is hereby approved on an accelerated basis. 23 *Id.* 24 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Market Regulation, pursuant to delegated authority. 24 Nancy M. Morris, Secretary. [FR Doc. E6-16162 Filed 9-29-06; 8:45 am] BILLING CODE 8010-01-P SMALL BUSINESS ADMINISTRATION [Disaster Declaration #10622 and #10623] North Carolina Disaster #NC-00005 AGENCY: Small Business Administration. ACTION: Notice. SUMMARY: This is a notice of an Administrative declaration of a disaster for the State of North Carolina dated 9/25/2006. *Incident:* Tropical Storm Ernesto. *Incident Period:* 8/31/2006. *Effective Date:* 9/25/2006. *Physical Loan Application Deadline Date:* 11/24/2006. *Economic Injury
(EIDL)Loan Application Deadline Date:* 6/25/2007. ADDRESSES: Submit completed loan applications to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road Fort Worth, TX 76155. FOR FURTHER INFORMATION CONTACT: A. Escobar, Office of Disaster Assistance, U.S. Small Business Administration, 409 3rd Street, SW., Suite 6050, Washington, DC 20416. SUPPLEMENTARY INFORMATION: Notice is hereby given that as a result of the Administrator's disaster declaration, applications for disaster loans may be filed at the address listed above or other locally announced locations. The following areas have been determined to be adversely affected by the disaster: *Primary Counties:* Duplin, Jones. *Contiguous Counties:* North Carolina: Carteret, Craven, Lenoir, Onslow, Pender, Sampson, Wayne. The Interest Rates are: Percent Homeowners With Credit Available Elsewhere 6.250 Homeowners Without Credit Available Elsewhere 3.125 Businesses With Credit Available Elsewhere 7.934 Businesses & Small Agricultural Cooperatives Without Credit Available Elsewhere 4.000 Other (Including Non-Profit Organizations) With Credit Available Elsewhere 5.000 Businesses And Non-Profit Organizations Without Credit Available Elsewhere 4.000 The number assigned to this disaster for physical damage is 10622 B and for economic injury is 10623 0. The State which received an EIDL Declaration # is North Carolina. (Catalog of Federal Domestic Assistance Numbers 59002 and 59008) Steven C. Preston, Administrator. [FR Doc. E6-16134 Filed 9-29-06; 8:45 am] BILLING CODE 8025-01-P SMALL BUSINESS ADMINISTRATION National Small Business Development Center Advisory Board; Public Meeting The U.S. Small Business Administration, National Small Business Development Center Advisory Board will be hosting a public meeting via conference call on Tuesday, October 17, 2006 at 1 p.m. (EST). The purpose of the meeting is to discuss the recent board meeting at the Houston ASBDC Conference on September 14, 2006, and the “Dialogue with the SBDC State Directors” meeting on September 15, 2006. Anyone wishing to place an oral presentation to the Board must contact Erika Fischer, Senior Program Analyst, U.S. Small Business Administration, Office of Small Business Development Centers, 409 3rd Street, SW., Washington, DC 20416, telephone
(202)205-7045 or fax
(202)481-0681. Thomas M. Dryer, Acting Committee Management Officer. [FR Doc. E6-16135 Filed 9-29-06; 8:45 am] BILLING CODE 8025-01-P SMALL BUSINESS ADMINISTRATION Privacy Act of 1974; System of Records Notice AGENCY: U.S. Small Business Administration (SBA). ACTION: Notice of new system of records. SUMMARY: The Small Business Administration is adding a new system of records to the Agency's Privacy Act Systems of Records. The system is called the SBA Identity Management System (IDMS). The purpose of this System is to automate records that maintain information required to comply with Homeland Security Presidential Directive 12 (HSPD-12). The IDMS provides the workflow process used to enforce roles in personalizing and issuing Personal Identify Verification
(PIV)cards. IDMS automates the current paper based process and is used to maintain the integrity of PIV card issuance. DATES: Written comments on the System of records must be received November 1, 2006. ADDRESSES: Written comments on the System of Records should be directed to Christine H. Liu, Agency Privacy Officer, U.S. Small Business Administration, 409 Third Street, SW., Washington, DC 20416 or *Christine.Liu@sba.gov.* FOR FURTHER INFORMATION CONTACT: Christine Liu, Agency Privacy Officer, U.S. Small Business Administration, 409 Third Street, SW., Washington, DC 20416; Telephone
(202)205-6708. SBA 34 SYSTEM NAME: IDENTITY MANAGEMENT SYSTEM—SBA 34. SYSTEM LOCATION: The servers and secure data storage are located at Maden Technologies; 2110 Washington Boulevard, Suite 200; Arlington, VA 22204. Enrollment and queries can be performed by authorized individuals from any authorized, suitably-equipped SBA workstation. CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM INCLUDE: Individuals, who require regular, ongoing access to SBA facilities, information technology systems, or information classified in the interest of national security, including: a. Applicants for employment or contracts. b. Federal employees. c. Contractors. d. Students. e. Interns. f. Volunteers, and The system also includes individuals authorized to perform or use services provided in SBA facilities (e.g., Credit Union, Fitness Center, etc.) The system does not apply to occasional visitors or short-term guests to whom SBA will issue temporary identification and credentials. CATEGORIES OF RECORDS IN THE SYSTEM: Full name, social security number; date of birth; signature; image (photograph); fingerprint images and minutia templates; hair color; eye color; height; weight; organization/office of assignment; company name; telephone number; copy of background investigation form; personal addresses for past 5 years; high school and college attended (as applicable); Card Holder Unique Identification Number; Personal Identity Verification
(PIV)enrollment package; PIV card issue and expiration dates; results of background investigation; PIV request form; PIV registrar approval signature; PIV card serial number; emergency responder designation; copies of documents used to verify identification or information derived from those documents; level of national security clearance and expiration date; computer system user name; user access and permission rights, public key certificates; digital signature information; National Agency Check with Written Inquiries investigation; FBI fingerprint check results; FBI National Criminal History Name Check results. AUTHORITY FOR MAINTENANCE OF THE SYSTEM: a. 5 U.S.C. 301; Federal Information Security Act (Pub. L. 104-106, sec. 5113) b. Electronic Government Act (Pub. L. 104-347, sec. 203) c. Paperwork Reduction Act of 1995 (44 U.S.C. 3501) d. Government Paperwork Elimination Act (Pub. L. 105-277, 44 U.S.C. 3504) e. Homeland Security Presidential Directive
(HSPD)12, Policy for a Common Identification Standard for Federal Employees and Contractors, August 27, 2004 f. Federal Property and Administrative Act of 1949, as amended. ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM INCLUDING CATEGORIES OF USERS AND THE PURPOSES OF SUCH USES, THESE RECORDS MAY BE USED, DISCLOSED OR REFERRED: a. To a Congressional Office from an individual's record, when the office is inquiring on the individual's behalf with waiver; the Member's access rights are no greater than the individual's. b. To the National Archives and Records Administration or to the General Services Administration for records management inspections conducted under 44 U.S.C. 2904 and 2906. c. To SBA contractors, grantees, or volunteers who have been engaged to assist the SBA in the performance of a contract service, grant, cooperative agreement, or other activity related to this system of records and who need to have access to the records in order to perform their activity. Recipients shall be required to comply with the requirements of the Privacy Act of 1974, as amended, 5 U.S.C. 552a. d. To a Federal, State, local, foreign, or tribal or other public authority of the fact that this system of records contains information relevant to the retention of an employee, the retention of a security clearance, the letting of a contract, or the issuance or retention of a license, grant, or other benefit with appropriate restrictions on further disclosure. e. To the Office of Management and Budget
(OMB)when necessary to the review of private relief legislation pursuant to OMB Circular No. A-19. f. To a Federal, State, or local agency, or other appropriate entities or individuals, or through established liaison channels to selected foreign governments, in order to enable an intelligence agency to carry out its responsibilities under the National Security Act of 1947 as amended, the CIA Act of 1949 as amended, Executive Order 12333 or any successor order, applicable national security directives, or classified implementing procedures approved by the Attorney General and promulgated pursuant to such statutes, orders or directives. g. To notify another Federal agency when, or verify whether, a PIV card is no longer valid. h. To a supervisor or manager in order to verify employee time and attendance record for personnel actions. Note: Disclosures within SBA of data pertaining to date and time of entry and exit of an agency employee working in the District of Columbia may not be made to supervisors, managers or any other persons (other than the individual to whom the information applies) to verify employee time and attendance record for personnel actions because 5 U.S.C. 6106 prohibits Federal Executive agencies (other than the Bureau of Engraving and Printing) from using a recording clock within the District of Columbia, unless used as a part of a flexible schedule program under 5 U.S.C. 6120 *et seq.* i. To the Department of Justice
(DOJ)when any of the following is a party to litigation or has an interest in such litigation, and the use of such records by the DOJ is deemed by the agency to be relevant and necessary to the litigation, provided, however, that in each case, the agency determines the disclosure of the records to the DOJ is a use of the information contained in the records that is compatible with the purpose for which the records were collected:
(1)The agency, or any component thereof;
(2)Any employee of the agency in his or her official capacity;
(3)Any employee of the agency in his or her individual capacity where the DOJ has agreed to represent the employee; or
(4)The United States Government, where the agency determines that litigation is likely to affect the agency or any of its components. j. In a proceeding before a court, or adjudicative body, or a dispute resolution body before which the agency is authorized to appear or before which any of the following is a party to litigation or has an interest in litigation, provided, however, that the agency determines that the use of such records is relevant and necessary to the litigation, and that, in each case, the agency determines that disclosure of the records to a court or other adjudicative body is a use of the information contained in the records that is compatible with the purpose for which the records were collected:
(1)The agency, or any component thereof;
(2)Any employee of the agency in his or her official capacity;
(3)Any employee of the agency in his or her individual capacity where the DOJ has agreed to represent the employee; or
(4)The United States Government, where the agency determines that litigation is likely to affect the agency or any of its components. POLICIES AND PRACTICES FOR STORING, RETRIEVING, ACCESSING, RETAINING, AND DISPOSING OF RECORDS: STORAGE: Records are stored in electronic media and in paper files and not on the card. RETRIEVABILITY: Records are retrievable by name, social security number, PIV card serial number, or Card Holder Unique Identification Number. SAFEGUARDS: Paper records are kept in locked cabinets in secure facilities and access to them is restricted to individuals whose role requires use of the records. Access to facilities will be controlled by the PIV card. The System requires a PIV card to log on and to digitally sign transactions. The computer servers in which records are stored are located in facilities that are secured by alarm systems and off-master key access. The computer servers themselves are password-protected. Access to individuals working at guard stations is password-protected; each person granted access to the system at guard stations must be individually authorized to use the system. A Privacy Act Warning Notice appears on the monitor screen when records containing information on individuals are first displayed. Data exchanged between the servers and the client PCs at the guard stations and badging office are encrypted. Backup tapes are stored in a locked and controlled room in a secure, off-site location. An audit trail is maintained and reviewed periodically to identify unauthorized access. Persons given roles in the PIV process must complete training specific to their roles to ensure they are knowledgeable about how to protect individually identifiable information. The system uses the high risk confidentiality and integrity security controls specified in the National Institute of Standards and Technology Special Publication 800-53. RETENTION AND DISPOSAL: Records relating to persons covered by this system are retained in accordance with General Records Schedule 18, Item 17. Unless retained for specific, ongoing security investigations, for maximum security facilities, records of access are maintained for five years and then destroyed by wiping hard drives and shredding paper. For other facilities, records are maintained for two years and then destroyed by wiping hard drives and shredding paper. All other records relating to employees are destroyed two years after ID security card expiration date. In accordance with FIPS 201-1, PIV Cards are deactivated within 18 hours of cardholder separation, notification of loss of card, or expiration. The information on PIV Cards is maintained in accordance with General Records Schedule 11, Item 4. PIV Cards that are turned in for destruction are shredded within 90 days. SYSTEM MANAGER(S) AND ADDRESSES: Assistant Administrator/Human Capital Management, United States Small Business Administration, 409 3rd Street, SW., Washington, DC 20416. Associate Administrator for Disaster Assistance, United States Small Business Administration, 409 3rd Street, SW., Washington, DC 20416. This responsibility may be delegated. NOTIFICATION PROCEDURES: An individual may submit a record inquiry either in person or in writing to the System Manager or the Senior Agency Official for Privacy. When requesting notification of or access to records covered by this Notice, an individual should provide his/her full name, date of birth, and work location. An individual requesting notification of records in person must provide identity documents sufficient to satisfy the custodian of the records that the requester is entitled to access, such as a government-issued photo ID. Individuals requesting notification via mail or telephone must furnish, at minimum, name, date of birth, social security number, and home address in order to establish identity. ACCESS PROCEDURES: The Systems Manager or Senior Agency Official for Privacy will determine the process. Requesters should reasonably specify the record contents being sought. CONTESTING PROCEDURES: Same as notification procedures. Requesters should also reasonably identify the record, specify the information they are contesting, state the corrective action sought and the reasons for the correction along with supporting justification showing why the record is not accurate, timely, relevant, or complete. SOURCE CATEGORIES: Employee, contractor, or applicant; sponsoring SBA; former sponsoring SBA; other Federal agencies; contract employer; former employer. Dated: September 22, 2006. Christine Liu, Departmental Privacy Officer. [FR Doc. E6-15848 Filed 9-29-06; 8:45 am] BILLING CODE 8025-01-P SOCIAL SECURITY ADMINISTRATION Agency Information Collection Activities: Proposed Request and Comment Request The Social Security Administration
(SSA)publishes a list of information collection packages that will require clearance by the Office of Management and Budget
(OMB)in compliance with Public Law 104-13, the Paperwork Reduction Act of 1995, effective October 1, 1995. The information collection packages that may be included in this notice are for new information collections, approval of existing information collections, revisions to OMB-approved information collections, and extensions (no change) of OMB-approved information collections. SSA is soliciting comments on the accuracy of the agency's burden estimate; the need for the information; its practical utility; ways to enhance its quality, utility, and clarity; and on ways to minimize burden on respondents, including the use of automated collection techniques or other forms of information technology. Written comments and recommendations regarding the information collection(s) should be submitted to the OMB Desk Officer and the SSA Reports Clearance Officer. The information can be mailed and/or faxed to the individuals at the addresses and fax numbers listed below: (OMB), Office of Management and Budget, *Attn:* Desk Officer for SSA, *Fax:* 202-395-6974. (SSA), Social Security Administration, DCFAM, *Attn:* Reports Clearance Officer, 1333 Annex Building, 6401 Security Blvd., Baltimore, MD 21235, *Fax:* 410-965-6400. I. The information collections listed below are pending at SSA and will be submitted to OMB within 60 days from the date of this notice. Therefore, your comments should be submitted to SSA within 60 days from the date of this publication. You can obtain copies of the collection instruments by calling the SSA Reports Clearance Officer at 410-965-0454 or by writing to the address listed above. 1. Certification of Period of Temporary Institutionalization and Need to Maintain Home—20 CFR 416.212(b)(1)—0960-0516. SSA is required by law to collect the information necessary to establish eligibility for continued Supplemental Security Income
(SSI)benefits for temporarily institutionalized individuals. Sections 1611(e)(1)(G)&(H) of the Social Security Act require the Commissioner to establish procedures for determining that a physician has certified that the period of confinement is not likely to exceed 3 months, and for determining that the recipient needs to continue to maintain and provide for the expense of a home or living arrangement. *Type of Request:* Extension of an OMB-approved information collection. *Number of Respondents:* 60,000. *Frequency of Response:* 1. *Average Burden Per Response:* 5 minutes. *Estimated Annual Burden:* 5,000 hours. 2. Representative Payee Report—20 CFR 404.2035, 404.2065, 416.635, and 416.665—0960-0068. SSA uses forms SSA-623 and SSA-6230 to determine if
(1)payments sent to individual representative payees have been used for Social Security beneficiaries' current maintenance and personal needs and
(2)the representative payee continues to be a capable representative concerned with the beneficiary's welfare. The respondents are individual representative payees for recipients of Social Security benefits. *Type of Request:* Revision to an OMB-approved information collection *Number of Respondents:* 5,500,000. *Frequency of Response:* 1. *Average Burden Per Response:* 15 minutes. *Estimated Annual Burden:* 1,375,000 hours. 3. Representative Payee Report—20 CFR 404.265 and 416.665—0960-0691. Form SSA-6234 is used to collect information from organizational representative payees, such as institutions, to determine if
(1)payments sent to these representative payees have been used for Social Security beneficiaries' current maintenance and personal needs;
(2)the representative payees continue to be capable representatives concerned with beneficiaries' welfare; and
(3)the representative payee organization is charging the beneficiary a fee, and if so, the amount of the fee. The respondents are organizational representative payees. *Type of Request:* Revision of an OMB-approved collection. *Number of Respondents:* 750,000. *Frequency of Response:* 1. *Average Burden Per Response:* 15 minutes. *Estimated Annual Burden:* 187,500. II. The information collections listed below have been submitted to OMB for clearance. Your comments on the information collections would be most useful if received by OMB and SSA within 30 days from the date of this publication. You can obtain a copy of the OMB clearance packages by calling the SSA Reports Clearance Officer at 410-965-0454, or by writing to the address listed above. 1. Annual Earnings Test Direct Mail Follow-Up Program Notices—20 CFR 404.452-404.455—0960-0369. The Mid-Year Mailer
(MYM)is used to ensure that Retirement Survivors Insurance
(RSI)payments are correct. Beneficiaries under full retirement age
(FRA)use Forms SSA-L9778, L9779, and L9781 to update their current year estimate and their estimate for the following year. MYM Forms SSA-L9784 and L9785 are designed to request earnings estimates in the year of FRA for the period prior to the month of FRA. Only one individually tailored Form is sent per respondent. Respondents are RSI beneficiaries with earnings over the exempt amount. *Type of Request:* Extension of an OMB-approved information collection. *Number of Respondents:* 225,000. *Frequency of Response:* 1. *Average Burden Per Response:* 10 minutes. *Estimated Annual Burden:* 37,500 hours. 2. Internet Request for Replacement of Forms SSA-1099/SSA-1042S—20 CFR 401.45—0960-0583. The information collected will be used by SSA to verify identity and to provide replacement copies of Forms SSA-1099/SSA-1042S needed to prepare Federal tax returns. This internet option to request a replacement SSA-1099/SSA-1042S will eliminate the need for a phone call to the national 800 number or a visit to a local field office. The respondents are beneficiaries who are requesting a replacement SSA-1099/SSA-1042S. *Type of Request:* Extension of an OMB-approved information collection. *Number of Respondents:* 21,000. *Frequency of Response:* 1. *Average Burden Per Response:* 1.5 minutes. *Estimated Annual Burden:* 525 hours. 3. SSA Survey of Online Services Internet Panel—0960-NEW. SSA plans to conduct an online panel survey with pre-retirement individuals. The survey will ask a number of questions about participants' experiences with SSA's Internet-based services. The results of the survey will be used to assess awareness of SSA Internet-based services and to identify ways to increase awareness of these services in the pre-retirement population. The respondents are individuals ages 50-67 who are employed and who have agreed to be contacted via e-maill for online surveys. *Type of Request:* New information collection. *Number of Respondents:* 1,000. *Frequency of Response:* 1. *Average Burden Per Response:* 15 minutes. *Estimated Annual Burden:* 250 hours. 4. Medicare Part B Income-Related Premium—Life-Changing Event Form—0960-NEW. As per the Medicare Modernization Act of 2003, beginning in January 2007 selected beneficiaries of Medicare Part B insurance will have to pay a new income-related monthly adjustment amount (IRMAA). The amount of the IRMAA is based on income tax return data obtained from the Internal Revenue Service. If affected Medicare Part B beneficiaries believe that more recent tax data should be used because a life-changing event has occurred that significantly reduces their income, they can report these changes to SSA and ask for a new initial determination of their IRMAA. SSA believes that most respondents will go to a field office and do this in person; however, some respondents may choose to contact SSA by mail and they can use form SSA-44, the Medicare Part B Income-Related Premium—Life-Changing Event form. The respondents are Medicare Part B beneficiaries who want SSA to use more recent income data in determining the amount of their IRMAA. *Type of Request:* New information collection. Method of information collection Number of respondents Frequency of response Average burden per response (minutes) Estimated annual burden (hours) Personal Interview 68,490 1 60 68,490 Form 7,610 1 90 11,415 Total 76,100 79,905 *Total Burden Hours:* 79,905 hours. Dated: September 26, 2006. Elizabeth A. Davidson, Reports Clearance Officer, Social Security Administration. [FR Doc. E6-16171 Filed 9-29-06; 8:45 am] BILLING CODE 4191-02-P SOCIAL SECURITY ADMINISTRATION Registration Requirements for Representatives to Receive Direct Payment of Fees Approved for Services Provided Before the Social Security Administration or a Federal Court and Forms 1099-MISC AGENCY: Social Security Administration (SSA). ACTION: Notice. SUMMARY: We are issuing this notice to advise attorneys and non-attorneys who represent claimants before SSA, and attorneys who represent Social Security or Supplemental Security Income claimants before the Federal courts, that the requirements a representative must meet for SSA to pay the approved fee, or a part of the approved fee, directly to the representative from a claimant's past-due benefits will change effective January 1, 2007. Currently, SSA pays all or part of the fee we approve to the claimant's representative from his or her past-due benefits if the representative is an attorney or a non-attorney participant in SSA's direct fee payment demonstration project. SSA also pays all or part of the fee a Federal court approves directly to an attorney from a claimant's past-due benefits. SSA must expand the information a representative is required to submit to SSA in order for SSA to pay a fee directly because sections 6041(a) and 6045(f) of the Internal Revenue Code (IRC), as implemented by 26 CFR 1.6041-1, require SSA to issue a Form 1099-MISC to each representative who receives, by direct payment from SSA, aggregate fees of $600 or more in a calendar year. To meet this requirement, a person whom a claimant appoints to represent him or her before SSA after December 31, 2006, who is otherwise eligible for direct fee payment, and an attorney for whom a Federal court approves a fee on or after January 1, 2007, must provide SSA with his or her Social Security Number
(SSN)as a prerequisite for SSA to pay a fee directly to the representative. FOR FURTHER INFORMATION CONTACT: Everett Jackson, Social Security Administration, Office of Budget, Finance and Management, 2-K-5 East Low Rise, 6401 Security Boulevard, Baltimore, MD 21235-6401,
(410)965-0014, e-mail *Everett.Jackson@ssa.gov.* SUPPLEMENTARY INFORMATION: Pursuant to sections 206 and 1631(d)(2) of the Social Security Act (Act), SSA: • Determines the maximum fee an attorney or non-attorney representative may charge and collect for services the representative provided before SSA in a claim under title II or title XVI of the Act; and • Pays the fee, or part of the fee, that was approved by the Commissioner of Social Security (Commissioner) or by a Federal court, under title II or title XVI, directly to an attorney out of a portion of the claimant's past-due benefits. 42 U.S.C. 406 and 42 U.S.C. 1383(d)(2). Additionally, section 303 of the Social Security Protection Act of 2004 (SSPA), Public Law 108-203, directs the Commissioner to carry out a 5-year nationwide demonstration project that extends the fee withholding and direct payment procedures that apply to attorneys under titles II and XVI of the Act to non-attorney representatives who meet certain prerequisites. This demonstration project commenced on February 28, 2005. Therefore, SSA is now paying directly to attorneys and non-attorney participants in the direct payment demonstration project fees we approve for administrative services, and to attorneys fees Federal courts approve for services before the courts. The Debt Collection Improvement Act of 1996 (DCIA), Public Law 104-134, mandates that each federal agency require persons “doing business with that agency” to provide the agency with his or her taxpayer identification number (TIN). 31 U.S.C. 7701. Under the DCIA, a person is considered to be doing business with an agency if the person is assessed a fee by the agency. Because SSA is required by sections 206(d) and 1631(d)(2)(C) of the Act to assess a fee on attorneys and eligible non-attorneys each time that SSA directly pays representational fees to them, SSA is doing business with representatives whom we directly pay. The DCIA also requires that, when a federal agency disburses money, it must include the TIN on each certified voucher submitted to a disbursing official. For individuals, the TIN is generally the SSN. 26 U.S.C. 6109. This means that, when SSA certifies for direct payment or directly pays a fee to a representative, SSA must include the representative's SSN on the payment voucher it submits to the Department of the Treasury. Accordingly, to comply with the DCIA's requirement that we obtain an SSN from each representative to whom we directly pay a fee and provide that SSN on each payment voucher to the Department of the Treasury, when a claimant has appointed a representative on January 1, 2007 or later, or when a Federal court has approved a fee on January 1, 2007 or later, SSA requires that the representative provide his or her SSN to SSA before SSA implements a favorable administrative determination or decision or before SSA acts on a Federal court's fee approval, as a condition for SSA to directly pay a fee or a portion of the fee to the representative from a claimant's past-due benefits. Pursuant to sections 6041(a) and 6045(f) of the IRC, as implemented by 26 CFR 1.6041-1, SSA is required to issue a Form 1099-MISC to each representative who receives, by direct payment from SSA, aggregate fees of $600 or more in a calendar year. Per section 6109 of the IRC, each representative must provide SSA with his or her TIN. Generally, the Internal Revenue Service
(IRS)Form W-9 is used to obtain the TIN. However, as allowed by the IRS, SSA is developing a substitute form, Form SSA-1699, Request for Appointed Representative's Direct Payment Information, to obtain the representative's SSN and other information we need to issue Forms 1099-MISC. We published a **Federal Register** notice of our intent to establish both the SSA-1699 and the SSA-1695, which is discussed below. See 71 FR 38681-38683, July 7, 2006. The one-time submission of the SSA-1699 is the first step in a two-step registration process that a representative must complete in order to receive direct fee payment in a specific claim. We are providing an electronic means by which representatives may complete and submit the SSA-1699 via our Internet Web site. The second step requires that a representative provide SSA with his or her SSN in each instance of representation ( *i.e.,* each time the representative is appointed to represent a claimant before SSA or, if an attorney did not register when the claim was pending before the Commissioner, each time a Federal court approves a fee) by submitting the Form SSA-1695, Identifying Information for Possible Direct Payment of Authorized Fees. The first step in the registration process, the one-time submission of the SSA-1699, begins with publication of this notice. The second step, submission of the SSA-1695, will begin in November of 2006. We will provide further information about the required forms, and the application developed to enable completion and submission of the SSA-1699 electronically via the Internet, on the Representing Claimants Web site on Social Security Online ( *http://www.socialsecurity.gov/representation* ). If a representative does not provide SSA with his or her SSN by completing both steps in the registration process as described above, SSA will not make direct fee payment to the representative, even if the representative is an attorney or a participant in the non-attorney direct payment demonstration project. (Catalog of Federal Domestic Assistance Program Nos. 96.001, Social Security—Disability Insurance; 96.002, Social Security—Retirement Insurance; 96.004, Social Security—Survivors Insurance; and 96.006, Supplemental Security Income) Dated: September 15, 2006. Dale W. Sopper, Deputy Commissioner, for Budget, Finance and Management. [FR Doc. E6-16096 Filed 9-29-06; 8:45 am] BILLING CODE 4191-02-P DEPARTMENT OF STATE [Public Notice 5552] Notice of Meeting of the Cultural Property Advisory Committee In accordance with the provisions of the Convention on Cultural Property Implementation Act (19 U.S.C. 2601 *et seq.* ) (the Act) there will be a meeting of the Cultural Property Advisory Committee on Wednesday, October 11, 2006, from approximately 9 a.m. to 5 p.m., and on Thursday, October 12, from approximately 9 a.m. to 1 p.m., at the Department of State, Annex 44, Room 840, 301 4th St., SW., Washington, DC. At this meeting, the Committee will conduct its ongoing review function with respect to the Memorandum of Understanding Between the Government of the United States of America and the Government of the Republic of Guatemala Concerning the Imposition of Import Restrictions on Archaeological Objects and Materials from the Pre-Columbian Cultures of Guatemala; and, with respect to the Memorandum of Understanding with the Government of the Republic of Mali Concerning the Imposition of Import Restrictions on Archaeological Material from the Region of the Niger River Valley and the Bandiagara Escarpment (Cliff). This meeting is for the Committee to satisfy its ongoing review responsibility of agreements pursuant to the Act. It will focus its attention on Article II of the MOUs. This is not a meeting to consider extension of the MOUs. Such a meeting or meetings will be scheduled in the future and at that time a public session will be held. The Committee's responsibilities are carried out in accordance with provisions of the Convention on Cultural Property Implementation Act (19 U.S.C. 2601 *et seq.* ). The U.S.—Guatemala MOU, the U.S.— Mali MOU, the designated lists of restricted categories, the text of the Act, and related information may be found at *http://exchanges.state.gov/culprop.* The meeting on October 11-12, will be closed pursuant to 5 U.S.C. 552b(c)(9)(B) and 19 U.S.C. 2605(h). Dated: September 21, 2006. Dina Habib Powell, Assistant Secretary for Educational and Cultural Affairs, Department of State. [FR Doc. E6-16196 Filed 9-29-06; 8:45 am] BILLING CODE 4710-05-P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration Notice of Passenger Facility Charge
(PFC)Approvals and Disapprovals AGENCY: Federal Aviation Administration (FAA), DOT. ACTION: Monthly Notice of PFC Approvals and Disapprovals. In August 2006, there were six applications approved. This notice also includes information on four applications, one approved in September 2005, one approved in January 2006, and two approved in July 2006, inadvertently left off the September 2005, January 2006, and July 2006 notices, respectively. Additionally, 20 approved amendments to previously approved applications are listed. SUMMARY: The FAA publishes a monthly notice, as appropriate, of PFC approvals and disapprovals under the provisions of the Aviation Safety and Capacity Expansion Act of 1990 (Title IX of the Omnibus Budget Reconciliation Act of 1990) (Pub. L. 101-508) and Part 158 of the Federal Aviation Regulations (14 CFR part 158). This notice is published pursuant to paragraph d of § 158.29. PFC Applications Approved *Public Agency:* County of Jefferson, Beaumont, Texas. *Application Number:* 05-05-C-00-BPT. *Application Type:* Impose and use a PFC. *PFC Level:* $4.50. *Total PFC Revenue Approved in this Decision:* $290,471. *Earliest Charge Effective Date:* April 1, 2007. *Estimated Charge Expiration Date:* November 1, 2008. *Class of Air Carriers Not Required to Collect PFC's:* None. *Brief Description of Projects Approved for Collection and Use:* Airport drainage environmental study. Airfield lighting. Terminal renovations. Perimeter security upgrades. PFC application and administration fees. *Decision Date:* September 12, 2005. FOR FURTHER INFORMATION CONTACT: Ben Guttery, Texas Airports Development Office,
(817)222-5614. *Public Agency:* Coos County Airport District, North Bend, Oregon. *Application Number:* 06-07-C-00-OTH. *Application Type:* Impose and use a PFC. *Total PFC Revenue Approved in this Decision:* $320,000. *PFC Level:* $4.50 *Earliest Charge Effective Date:* March 1, 2008. *Estimated Charge Expiration Date:* July 1, 2010. *Class of Air Carriers not Required to Collect PFC's:* Non-scheduled air tax/commercial operators, utilizing aircraft having a seating capacity of less than 20 passengers. *Determination:* Approved. Based on information contained in the public agency's application, the FAA has determined that the proposed class accounts for less than 1 percent of the total annual enplanements at North Bend Municipal Airport. *Brief Description of Projects Approved for Collection and Use:* Design new terminal building facilities. PFC administration. *Decision Date:* January 25, 2006. FOR FURTHER INFORMATION CONTACT: Suzanne Lee-Pang, Seattle Airports District Office,
(425)227-2654. *Public Agency:* City of Fort Smith, Arkansas. *Application Number:* 06-03-C-00-FSM. *Application Type:* Impose and use a PFC. *PFC Level:* $3.00 *Total PFC Revenue Approved in this Decision:* $809,249. *Earliest Charge Effective Date:* January 1, 2010. *Estimated Charge Expiration Date:* August 1, 2013. *Class of Air Carriers not Required to Collect PFC's:* None. *Brief Description of Projects Approved for Collection and Use:* Perimeter road construction. Terminal apron. Terminal security equipment. Conditioned air at gates. *Decision Date:* July 5, 2006. FOR FURTHER INFORMATION CONTACT: Don Harris, Arkansas/Oklahoma Airports Development Office,
(817)222-5634. *Public Agency:* City of Colorado Springs, Colorado. *Application Number:* 06-10-C-00-COS. *Application Type:* Impose and use a PFC. *Total PFC Revenue Approved in this Decision:* $3,012,574. *PFC Level:* $3.00. *Earliest Charge Effective Date:* September 1, 2007. *Estimated Charge Expiration Date:* January 1, 2009. *Class of Air Carriers not Required to Collect PFC's:* None. *Brief Description of Projects Approved for Collection and Use:* Canopies to cover public surface sidewalks for passenger and baggage movement to ground transportation areas. Access road to long term parking lot. *Brief Description of Disapproved Project:* Terminal circulation road. *Determination:* The project does not meet the requirements of § 158.15(c). The FAA could not determine that the project was adequately justified based on the traffic volume information provided by the public agency. In addition, the project does not meet the requirements of § 158.15(b)(1) in accordance with paragraphs 620(a)(4) and 620(b)(1) of FAA Order 5100.38C, Airport Improvement Program Handbook (June 28, 2005). *Decision Date:* July 28, 2006. FOR FURTHER INFORMATION CONTACT: Chris Schaffer, Denver Airports District Office,
(303)342-1258. *Public Agency:* County of Milwaukee, Milwaukee, Wisconsin. *Application Number:* 06-13-C-00-MKE. *Application Type:* Impose and use a PFC. *Total PFC Revenue Approved in this Decision:* $46,806,855. *PFC Level:* $3.00. *Earliest Charge Effective Date:* May 1, 2018. *Estimated Charge Expiration Date:* January 1, 2024. *Class of Air Carriers not Required to Collect PFC'S:* Air taxi/commercial operators filing FAA Form 1800-31. *Determination:* Approved. Based on information contained in the public agency's application, the FAA has determined that the proposed class accounts for less than 1 percent of the total annual enplanements at General Mitchell International Airport. *Brief Description of Projects Approved for Collection and Use:* Rehabilitate firehouse road. Runway and taxiway shoulder maintenance. Inline baggage security—construction. Public restroom renovation—design. Security system fiber optic replacement—design. Interactive employee training for safety and security. Ticketing drive road reconstruction. E concourse stem. *Brief Description of Withdrawn Project:* Southside trituration room. Date of withdrawal: July 25, 2006. *Decision Date:* August 2, 2006. FOR FURTHER INFORMATION CONTACT: Nancy Nistler, Minneapolis Airports District Office,
(612)713-4353. *Public Agency:* Kansas City Department of Aviation, Kansas City, Missouri. *Application Number:* 05-05-C-00-MCI. *Application Type:* Impose and use a PFC. *PFC Level:* $4.50. *Total PFC Revenue Approved in this Decision:* $56,963,842. *Earliest Charge Effective Date:* November 1, 2014. *Estimated Charge Expiration Date:* February 1, 2017. *Class of Air Carriers not Required to Collect PFC'S:* Air taxi/commercial operators filing FAA Form 1800-31. *Determination:* Approved. Based on information contained in the public agency's application, the FAA has determined that the proposed class accounts for less than 1 percent of the total annual enplanements at Kansas City International Airport (MCI). *Brief Description of Projects Approved for Collection at MCI and Use at MCI at a $4.50 PFC Level:* Two new aircraft rescue and firefighting vehicles. New aircraft rescue and firefighting facility. Inline baggage screening. *Brief Description of Project Approved for Collection at MCI for Future Use at Charles B. Wheeler Downtown Airport
(MKC)at a $4.50 PFC Level:* Fuel farm relocation. *Brief Description of Projects Approved for Collection at MCI and Use at MCI at a $3.00 PFC Level:* Extend taxiways B and D. Rehabilitate taxiways M and L. Update airport master plan and Part 150 study update. Rehabilitate taxiway D. Airfield lighting rehabilitation. Terminal improvements—holdrooms. Upgrade glycol collection system. *Brief Description of Project Approved for Collection at MCI for Future Use at MCI at a $3.00 PFC Level:* Airfield snow removal equipment building. *Brief Description of Projects Approved for Collection at MCI and Use at MKC at a $3.00 PFC Level:* Reconstruct runway 1/19. Perimeter fencing replacement. *Brief Description of Withdrawn Projects:* New airfield sand and deicer storage building. Triturator and garbage facility. Date of withdrawal: August 8, 2006. *Decision Date:* August 8, 2006. FOR FURTHER INFORMATION CONTACT: Mark Schenkelberg, Central Region Airports Division,
(816)329-2638. *Public Agency:* City of Houston, Texas. *Application Number:* 06-01-C-00-HOU. *Application Type:* Impose and use a PFC. *PFC Level:* $3.00. *Total PFC Revenue Approved in This Decision:* $163,415,047. *Earliest Charge Effective Date:* November 1, 2006. *Estimated Charge Expiration Date:* October 1, 2017. *Classes of Air Carriers not Required to Collect PFC's:*
(1)Part 135 air taxi/commercial operators filing FAA Form 1800-31; and
(2)commuters or small certificated air carriers filing Department of Transportation Form T100. *Determination:* Approved. Based on information contained in the public agency's application, the FAA has determined that each proposed class accounts for less than 1 percent of the total annual enplanements at William P. Hobby Airport. *Brief Description of Projects Approved for Collection and Use:* Rehabilitate runways 12L/30R and 17/35. Rehabilitation and modifications to taxiway system. Expand taxiway electrical system. Airport drainage and storm water improvements. Acquire runway 17 protection zone. Airfield lighting and control. Central terminal expansion. Conduct master plan. Central concourse equipment. Apron reconstruction. Taxiway and taxilane reconstruction. Overlay runway 12R/30L. Perimeter fencing and obstruction removal. Access controls and telecommunications for airport operating area. Conduct environmental impact statement. Land acquisition for runway 4 protection zone. Conduct drainage/storm water plan. PFC consulting, administration, and auditing. *Decision Date:* August 10, 2006. FOR FURTHER INFORMATION CONTACT: Ben Guttery, Texas Airports Development Office,
(817)222-5614. *Public Agency:* City of Chicago Department of Aviation, Chicago, Illinois. *Application Number:* 06-17-C-00-ORD. *Application Type:* Impose and use a PFC. *PFC Level:* $4.50. *Total PFC Revenue Approved in this Decision:* $73,198,000. *Earliest Charge Effective Date:* November 1, 2015. *Estimated Charge Expiration Date:* June 1, 2016. *Class of Air Carriers not Required to Collect PFC'S:* Air taxi. *Determination:* Approved. Based on information contained in the public agency's application, the FAA has determined that the proposed class accounts for less than 1 percent of the total annual enplanements at Chicago O'Hare International Airport. *Brief Description of Projects Approved for Collection and Use at a $4.50 PFC Level:* 2005/2006 residential home insulation. 2005/2006 school insulation. *Brief Description of Project Approved for Collection and Use at a $3.00 PFC Level:* Permanent noise monitoring system upgrade. *Decision Date:* August 17, 2006. FOR FURTHER INFORMATION CONTACT: Chad Oliver, Chicago Airports District Office,
(847)294-7199. *Public Agency:* County of Kalamazoo, Kalamazoo, Michigan. *Application Number:* 06-05-C-00-AZO. *Application Type:* Impose and use a PFC. *PFC Level:* $4.50. *Total PFC Revenue Approved in this Decision:* $1,500,000. *Earliest Charge Effective Date:* October 1, 2006. *Estimated Charge Expiration Date:* April 1, 2008. *Class of Air Carriers not Required to Collect PFC'S:* Non-scheduled Part 135 and air taxi operators. *Determination:* Approved. Based on information contained in the public agency's application, the FAA has determined that the proposed class accounts for less than 1 percent of the total annual enplanements at Kalamazoo/Battle Creek International Airport. *Brief Description of Projects Approved for Collection and Use:* Terminal renovation, expansion, new construction, and redesign. *Decision Date:* August 22, 2006 FOR FURTHER INFORMATION CONTACT: Jason Watt, Detroit Airports District Office,
(734)229-2906. *Public Agency:* County of Marquette, Gwinn, Michigan. *Application Number:* 06-08-C-00-SAW. *Application Type:* Impose and use a PFC. *PFC Level:* $4.50. *Total PFC Revenue Approved in this Decision:* $150,711. *Earliest Charge Effective Date:* October 1, 2006. *Estimated Charge Expiration Date:* May 1, 2008. *Class of Air Carriers not Required to Collect PFC's:* None *Brief Description of Projects Approved for Collection and Use:* Runway safety area improvements (phase I—design). Snow removal equipment (sweeper and blower). Pavement and marking (airfield markings). Terminal access. Aircraft rescue and firefighting/snow removal equipment facility. Runway lighting (electrical conduit repairs—emergency). Runway safety area improvements (construction). Airport master plan study. Materials
(sand)storage building (phase I—design). Aircraft rescue and firefighting vehicle (draft specifications only). Runway slab replacement (design). Aircraft rescue and firefighting vehicle—phase II. Sand storage building (phase II—construction). Snow removal equipment. Runway slab replacement (phase II—construction). Runway 1 slab replacement (south of Bravo taxiway). Airfield lighting improvements. Snow removal equipment. Rehabilitation of pavements. Runway 1 slab replacement south (construction) and north of Bravo taxiway (design only). Airfield lighting improvements (phase II—construction). *Brief Description of Disapproved Projects:* Passenger terminal expansion (design). Taxiway Bravo reconstruction (design). Interactive employee training system. Terminal building expansion (phase II—construction). Runway 19 instrument landing system. Taxiway Bravo reconstruction (construction). Snow removal equipment acquisition. Runway 1/19 threshold area rehabilitation. Pavement rehabilitation (rubber removal and painting). Runway 1 pavement replacement north of taxiway Bravo (construction). *Determination:* These projects do not meet the requirements of § 158.33(a)(1). The information provided indicates that the projects would not have been implemented within 2 years of approval. Fiscal Year 2005 project engineering and administration. *Determination:* Engineering and project administration costs must be assigned to specific development projects. *Decision Date:* August 14, 2005. FOR FURTHER INFORMATION CONTACT: Jason Watt, Detroit Airports District Office,
(734)229-2906. Amendments to PFC Approvals Amendment No. city, state Amendment approved date Original approved net PFC revenue Amended approved net PFC revenue Original estimated charge exp. date Amended estimated charge exp. date 98-02-C-02-GUC, Gunnison, CO 03/15/06 $183,754 $179,074 04/01/01 03/01/01 03-04-C-01-PIH, Pocatello, ID 04/05/06 456,500 497,218 10/01/07 04/01/08 94-01-C-08-CVG, Covington, KY 04/22/06 32,872,000 35,936,000 05/01/96 04/01/96 02-03-C-02-PWM, Portland, ME 05/18/06 18,234,688 19,425,419 03/01/13 12/01/13 01-09-C-01-BNA, Nashville, TN 05/31/06 26,005,000 4,145,183 10/01/04 04/01/03 03-08-C-01-JAX, Jacksonville, FL 06/16/06 68,357,263 73,281,526 11/01/08 01/01/08 96-03-I-02-SUN, Hailey, ID 06/19/06 566,335 558,131 06/01/99 06/01/99 99-04-C-01-SUN, Hailey, ID 06/19/06 1,085,105 950,746 04/01/05 08/01/04 99-04-C-02-SUN, Hailey, ID 06/19/06 950,746 950,746 08/01/04 08/01/04 98-02-C-01-SBN, South Bend, IN 06/28/06 1,367,991 1,387,143 06/01/03 11/01/02 95-03-C-03-CLE, Cleveland, OH 06/30/06 20,700,642 19,945,762 02/01/97 11/01/96 03-03-C-01-SFO, San Francisco, CA 07/11/06 539,107,697 609,107,697 11/01/18 01/01/17 98-03-C-07-CVG, Covington, KY 07/24/06 24,833,000 24,852,000 08/01/99 08/01/99 92-01-C-10-SJC, San Jose, CA 07/27/06 70,625,368 64,670,368 07/01/96 07/01/96 99-07-C-02-SJC, San Jose, CA 07/27/06 12,950,000 12,628,000 01/01/02 07/01/02 01-11-C-02-SJC, San Jose, CA 07/27/06 118,161,491 131,055,103 07/01/06 01/01/07 *97-01-C-03-SDF, Louisville, KY 07/31/06 90,600,000 90,600,000 04/01/12 09/01/14 01-02-C-04-SDF, Louisville, KY 07/31/06 10,012,140 10,012,140 03/01/13 12/01/16 03-03-C-02-SDF, Louisville, KY 07/31/06 5,666,800 5,666,800 09/01/13 02/01/18 06-04-C-01-SDF, Louisville, KY 07/31/06 1,267,315 1,267,315 10/01/13 05/01/18 Note: The amendment denoted by an asterisk (*) includes a change to the PFC level changed from $3.00 per enplaned passenger to $4.50 per enplaned passenger. For Louisville, KY, this change is effective on October 1, 2006: Issued in Washington, DC, on September 22, 2006. Joe Hebert, Manager, Financial Analysis and Passenger Facility Charge Branch. [FR Doc. 06-8377 Filed 9-29-06; 8:45 am]
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U.S. Code
- Registration, responsibilities, and oversight of self-regulatory organizations§ 78s
- National securities exchanges§ 78f
- Public information; agency rules, opinions, orders, records, and proceedings§ 552
- Definitions and application§ 78c
- National system for clearance and settlement of securities transactions§ 78q–1
- Departmental regulations§ 301
- Purposes§ 3501
- Authority and functions of Director§ 3504
- General responsibilities for records management§ 2904
- Records maintained on individuals§ 552a
- Time clocks; restrictions§ 6106
- Purpose§ 6120
- Representation of claimants before Commissioner§ 406
- Procedure for payment of benefits§ 1383
- IMPROVING INTERNATIONAL STANDARDS AND COOPERATION TO FIGHT TERRORIST FINANCING.§ 7701
- Identifying numbers§ 6109
- Definitions§ 2601
- Open meetings§ 552b
- Cultural Property Advisory Committee§ 2605
CFR
- Delegation of authority to Director of Division of Trading and Markets.§ 200.30-3
- NMS security designation and definitions.§ 242.600
- Continuation of full benefits in certain cases of medical confinement.§ 416.212
- What are the responsibilities of your representative payee?§ 404.2035
- Verifying your identity.§ 401.45
- Return of information as to payments of $600 or more.§ 1.6041-1
13 references not yet in our index
- 17 CFR 240.19
- 15 USC 78
- 15 USC 80a
- Pub. L. 104-106
- Pub. L. 104-347
- Pub. L. 105-277
- Pub. L. 104-13
- 20 CFR 404.265
- 20 CFR 404.452-404
- Pub. L. 108-203
- Pub. L. 104-134
- Pub. L. 101-508
- 14 CFR 158
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Cite15 USC 78
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