Notices. Notice

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BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-55179; File No. SR-Amex-2007-08] Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing of Proposed Rule Change To Establish a Passive Price Improvement Order for Specialists and Registered Traders January 26, 2007. 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 January 19, 2007, the American Stock Exchange LLC (“Amex” or “Exchange”) filed with the Securities and Exchange Commission the proposed rule change as described in Items I, II, and III below, which Items have been substantially prepared by the Exchange.

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. I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Amex proposes to amend its rules with respect to its new AEMI SM trading platform and hybrid market structure for equity products and exchange-traded funds (“ETFs”), recently approved by the Commission, 3 to add a new Passive Price Improvement (“PPI”) order type to encourage Specialists and Registered Traders to provide aggressing orders with increased opportunities for price improvement.

PPI orders would be the only method by which Specialists and Registered Traders could offer price improvement electronically and would provide undisplayed liquidity that reacts to aggressing orders according to criteria met at the time of order entry. PPI orders are intended to replicate in part the dynamics of floor-based trading in an electronic environment, and the Exchange believes that they would act as an incentive for the Exchange's Specialists and Registered Traders to quote more aggressively and add liquidity to the market.

This should serve to assist the specialists and market makers in maintaining the continuity and depth of the marketplace, increase the quality of the market, and dampen volatility. 3 *See* Securities Exchange Act Release No. 54552 (September 29, 2006), 71 FR 59546 (October 10, 2006). The text of the proposed rule change is available on Amex's Web site at *http://www.amex.com,* at Amex's Office of the Secretary and at 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 the Statutory Basis for, the Proposed Rule Change

(1)Purpose To encourage Specialists and Registered Traders to provide aggressing orders with increased opportunities for price improvement, the Exchange is proposing to adopt a new Passive Price Improvement (“PPI”) order type. This would be the only method by which Specialists and Registered Traders could offer price improvement electronically. This interest would be undisplayed and reside inside the APQ, and its purpose is to offer price improvement to an aggressing order. The ability to offer price improvement would be linked to the competitiveness and size of the Amex liquidity provider's own displayed quote. PPI orders are intended to replicate in part the dynamics of floor-based trading in an electronic environment and the Exchange believes that they would act as an incentive for the Exchange's Specialists and Registered Traders to quote more aggressively and add liquidity to the market. This should also serve to maintain continuity and depth in the marketplace as well as to increase the quality of the market and dampen volatility. A Specialist or Registered Trader could have only a single, undisplayed PPI order per side in a particular security on the AEMI Book at any point in time, which must be inside the APQ and would be permitted only if the user has at least one quote for that side in the AEMI Book. A PPI order would not form part of the APQ and would be visible only to the entering Specialist or Registered Trader or his firm or group. A PPI order on the AEMI Book could be of any size, but its eligibility for execution would be assessed at the time of execution against an incoming order, and would be based on the competitiveness of the participant's quote at that time. AEMI would make a PPI order eligible for execution if at least one of the following two conditions is met; otherwise AEMI would ignore the PPI order: 1. The Specialist's or Registered Trader's displayed quote is at the APQ on the side of the PPI order that would be executed. In this case, the PPI order would be executed up to

(a)the size of the Specialist's or Registered Trader's displayed quote or

(b)the size of the incoming order, whichever is smaller. Any balance of the PPI order would be considered ineligible to trade against the incoming order and will be ignored. 2. The Specialist's or Registered Trader's displayed quote is

(i)one tick away from the APQ on the side of the PPI order that would be executed, and

(ii)at least double the size of the APQ on the side of the PPI order that would be executed. In this case, the PPI order would be executed up to

(a)half of the size of the Specialist's or Registered Trader's displayed quote or

(b)the size of the incoming order, whichever is smaller. Any balance of the PPI order would be considered ineligible to trade against the incoming order and would be ignored. In both cases, as with other aggressing orders, intermarket sweep orders would be generated to clear any better-priced protected quotations at other markets. The two conditions above balance the need to provide meaningful price improvement opportunities in the form of undisplayed liquidity with the need to ensure the competitiveness of displayed quotations. The AEMI platform would ignore ( *i.e.* , make ineligible for execution against an aggressing order, without canceling) a PPI order on the AEMI Book that locks or crosses the automated NBBO or APQ as a result of a change in the automated NBBO or APQ or equals the APQ on the same side of the market. If there are multiple PPI orders at the same price, the Specialist's PPI order would take priority over a Registered Trader's PPI order. This provision recognizes the fact that Specialists have higher capital requirements, more stringent quoting obligations, and more trading obligations (both negative and affirmative) and responsibilities to maintain a fair and orderly market, and seeks to reward the Specialist for his central role in providing liquidity to the marketplace. It also encourages Registered Traders to make tighter markets and enhances competition among the liquidity providers. PPI orders would not participate in negotiated trades, and they would be ignored when auto-ex is disabled. For example, assume that the NBB is $6.90 bid for 2,500 shares, comprising NYSE and ARCA for 1,000 shares each, and INET for 500 shares. The Specialist is bidding $6.89 for 2,000 shares, and represents the Amex best bid which is published in the APQ. Registered Traders #1, #2, and #3 are each quoting $6.87 bid for 500 shares each. The Specialist has a PPI order at $6.91 bid for 3,000 shares; Registered Traders #1 and #2 each have a PPI order at $6.91 bid for 500 shares; and Registered Trader #3 has a PPI order at $6.91 bid for 300 shares. An incoming order to sell 3,000 shares at $6.90 would trade 2,000 shares against the Specialist at $6.91, since the Specialist's quote is at the APQ and the PPI order may be executed only up to the size of the Specialist's displayed quote. The remaining balance of 1,000 shares would be routed away at $6.90. The PPI orders of the Registered Traders were ignored in this case since none of their displayed quotes were either at the APQ or a tick away from the APQ. As a second example, assume that the NBB is $6.89 bid for 3,000 shares, comprising the Amex best bid. The Specialist is bidding $6.89 for 2,000 shares and a Registered Trader is bidding $6.89 for 1,000 shares. The Specialist has a PPI order at $6.91 bid for 3,000 shares and the Registered Trader has a PPI order at $6.91 bid for 1,000 shares. An incoming limit order to buy 100 shares at $6.90 arrives on the AEMI Book, creating a new NBB and Amex best bid. This is followed by an incoming order to sell 2,500 shares at the market. At the time of execution of the incoming order, the Specialist and the Registered Trader are a tick away from the APQ, and their PPI orders may therefore each trade up to only half of the size of the participant's displayed quote. Both PPI orders are eligible since both participants are quoting at least double the size of the APQ. The incoming order trades 1,000 shares at $6.91 against the Specialist's PPI order, 500 shares at $6.91 against the Registered Trader's PPI order, 100 shares at $6.90 against the order on the AEMI Book, and the balance of 900 shares at $6.89 against the displayed quotes of the Specialist and the Registered Trader. The unexecuted balances of the PPI orders remain on the AEMI Book. The specific AEMI rules to which changes are being proposed are discussed below. Rule 123—AEMI—Manner of Bidding and Offering An additional phrase is being added to section

(e)of Rule 123—AEMI to provide that AEMI would not display a PPI order. Rule 131—AEMI—Types of Orders The Exchange is proposing to add the definition of a PPI order to section

(q)of Rule 131-AEMI. The proposed definition would contain the two conditions under which a PPI order would be eligible for execution by AEMI, as described above. Under the proposed definition, a PPI order would be an order submitted to AEMI by a Specialist or a Registered Trader to buy or sell a stated amount of a security at a specified, undisplayed price. A Specialist or Registered Trader could have only one PPI order to buy and/or one PPI order to sell a particular security on the AEMI Book at any point in time. A Registered Trader would have to be actively quoting a security in order to enter a PPI order in the security. The proposed definition would provide that AEMI would reject a new PPI order

(i)if it is not priced inside APQ (above the bid and below the offer) at the time of entry into AEMI,

(ii)if it is marked “sell short” (except for certain securities that have been granted no-action relief from a short sale price test, such as ETFs and Regulation SHO Pilot securities), although not if it is marked “sell short exempt” or

(iii)if the order would lock or cross the automated NBBO. AEMI would cancel a PPI order on the AEMI Book

(i)if the Specialist's or Registered Trader's best quote is withdrawn,

(ii)at the end of the day, or

(iii)if there is a trading halt in the security. AEMI would ignore ( *i.e.* , make ineligible for execution against an aggressing order, without canceling) a PPI order on the AEMI Book

(i)if the two conditions for execution eligibility described above are not met,

(ii)if automatic execution becomes disabled,

(iii)if the price of the PPI order locks or crosses the automated NBBO or APQ as a result of a change in the automated NBBO or APQ, or

(iv)if the price of the PPI order equals the APQ on the same side of the market. With respect to

(iii)and

(iv)in the previous sentence, AEMI would continue to ignore the PPI order and prevent the person who entered it from entering a new PPI order on the same side of the market until the automated NBBO or APQ, changes so that the PPI order no longer locks or crosses the automated NBBO or APQ, or no longer is equal to the APQ on the same side of the market, or the person who entered the PPI order cancels it. The proposed rule change also provides that, if there is more than one PPI order in the AEMI Book, AEMI would execute the orders in price/time priority, provided, however, that Specialist PPI orders would be given priority over Registered Trader PPI orders at the same price. A PPI order would not be displayed in the APQ and would be visible only to the Specialist or Registered Trader who entered it or to his or her firm. AEMI would only execute PPI orders only when automatic execution is enabled. AEMI would execute PPI orders only against aggressing orders (or elected or converted stop and percentage orders). PPI orders would not participate in the execution of cross-only or mid-point cross orders or in the execution of auction trades. Finally, the proposed definition provides that a PPI order could be entered only during the regular trading session and will not participate in an opening, reopening, cash closing, or regular closing. The proposed rule change also would add language to section

(r)of Rule 131—AEMI relating to cross orders to clarify how PPI orders would interact with the new electronic cross order types that will be available in AEMI. While “cross-only” or “mid-point” cross orders would not execute against PPI orders, “IOC cross,” “cross,” and “PNP cross” orders could execute against any executable PPI orders at the price of the PPI orders. In the case of auction cross orders, the displayed order could be price-improved by PPI orders in the AEMI Book as well as by new bids, offers, or orders entering the AEMI Book during the three-second auction cross duration. *Rule 157—AEMI—Orders with More than One Broker* The Exchange is proposing to add a phrase to section

(b)of Rule 157—AEMI to clarify that a Registered Trader may maintain a PPI order in AEMI while he is maintaining a bid or offer for the same security in AEMI. *Rule 170—AEMI—Registration and Functions of Specialists* The Exchange is proposing to add language to Commentaries .01 and .02 of Rule 170—AEMI to allow transactions by the Specialist in certain “tick” situations without the approval of a Floor Official if the Specialist effects the transaction by means of a PPI order.

(2)Statutory Basis The proposed rule change is designed to be consistent with Regulation NMS, as well as consistent with Section 6(b) of the Act, 4 in general, and furthers the objectives of Section 6(b)(5), 5 in particular, in that it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, and, in general, to protect investors and the public interest. 4 15 U.S.C. 78f(b). 5 15 U.S.C. 78f(b)(5). B. Self-Regulatory Organization's Statement on Burden on Competition The proposed rule change does not 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 solicited or received with respect to the proposed rule change. 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, 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 is consistent with the 1934 Act. Comments may be submitted by any of the following methods: Electronic Comments Use the Commission's Internet comment form at *http://www.sec.gov/rules/sro.shtml* or send an e-mail to *rule-comments@sec.gov* . Please include File No. SR-Amex-2007-08 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 No. SR-Amex-2007-08. 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 at *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, 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 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 No. SR-Amex-2007-08 and should be submitted on or before February 23, 2007. For the Commission, by the Division of Market Regulation, pursuant to delegated authority. 6 6 17 CFR 200.30-3(a)(12). Florence E. Harmon, Deputy Secretary. [FR Doc. E7-1689 Filed 2-1-07; 8:45 am] BILLING CODE 8011-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-55181; File No. SR-NASD-2007-005] Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Notice of Filing and Order Granting Accelerated Approval of Proposed Rule Change to Operate the Alternative Display Facility on a Permanent Basis January 26, 2007. 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 January 23, 2007, the National Association of Securities Dealers, Inc. (“NASD”) filed with the Securities and Exchange Commission (“Commission”) the proposed rule change as described in Items I and II below, which Items have been substantially prepared by NASD. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. In addition, the Commission is granting accelerated approval of the proposed rule change. 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b-4. I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change NASD proposes to amend NASD Rule 4100A to operate its Alternative Display Facility (“ADF”) on a permanent basis. The ADF pilot program, as approved by the Commission on July 24, 2002, and extended on April 7, 2003, January 26, 2004, October 21, 2004, July 20, 2005, and April 26, 2006, will expire on January 26, 2007. NASD has requested accelerated approval of the proposed rule change and proposes an operative date of January 27, 2007. The text of the proposed rule change is available at NASD, the Commission's Public Reference Room, and *http://www.nasd.com* . II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, NASD included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it had received on the proposed rule change. The text of these statements may be examined at the places specified in Item III below. NASD 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 July 24, 2002, the Commission approved SR-NASD-2002-97, 3 which authorized NASD to operate the ADF on a pilot basis for nine months. NASD subsequently filed for immediate effectiveness proposed rule changes SR-NASD-2003-067 to extend the pilot until January 26, 2004; 4 SR-NASD-2004-012 to extend the pilot until October 26, 2004; 5 SR-NASD-2004-160 to extend the pilot until July 26, 2005; 6 SR-NASD-2005-092 to extend the pilot until April 26, 2006; 7 and SR-NASD-2006-050 to extend the pilot until January 26, 2007. 8 As described in detail in SR-NASD-2005-087, which replaced withdrawn rule filing SR-NASD-2001-090, the ADF is a quotation collection, trade comparison, and trade reporting facility developed by NASD in accordance with the Commission's SuperMontage Approval Order 9 and in conjunction with Nasdaq's then anticipated registration as a national securities exchange. 10 In addition, since the Commission gave its initial approval to the ADF pilot, NASD has filed several other ADF-related rule change proposals that have been incorporated into the operation and administration of the pilot, 11 and accordingly, would now operate on a permanent basis as well. 12 3 *See* Securities Exchange Act Release No. 46249 (July 24, 2002), 67 FR 49822 (July 31, 2002). 4 *See* Securities Exchange Act Release No. 47663 (April 10, 2003), 68 FR 19043 (April 17, 2003). 5 *See* Securities Exchange Act Release No. 49131 (January 27, 2004), 69 FR 5229 (February 3, 2004). 6 *See* Securities Exchange Act Release No. 50601 (October 28, 2004), 69 FR 64611 (November 5, 2004). 7 *See* Securities Exchange Act Release No. 52122 (July 25, 2005), 70 FR 44133 (August 1, 2005). 8 *See* Securities Exchange Act Release No. 53699 (April 21, 2006), 71 FR 25271 (April 28, 2006). 9 *See* Securities Exchange Act Release No. 43863 (January 19, 2001), 66 FR 8020 (January 26, 2001) (SR-NASD-99-53). 10 *See* Securities Exchange Act Release No. 44396 (June 7, 2001), 66 FR 31952 (June 13, 2001) (File No. 10-131). The Commission conditionally approved the Nasdaq Exchange application on January 13, 2006. *See* Securities Exchange Act Release No. 53128 (January 13, 2006), 71 FR 3550 (January 23, 2006). 11 On January 30, 2003, NASD filed proposed rule change SR-NASD-2003-009 to revise the transaction and quotation-related fees applicable to ADF activity during the pilot program. The rule change proposal became effective upon filing, with an implementation date of February 17, 2003. *See* Securities Exchange Act Release No. 47331 (February 10, 2003), 68 FR 7635 (February 14, 2003). On January 6, 2004, the Commission granted accelerated approval to SR-NASD-2003-145, a proposal to amend the ADF pilot rules to give jurisdiction to a three-member subcommittee of NASD's Market Regulation Committee to review system outage determinations under NASD Rule 4300A(f) and excused withdrawal denials under NASD Rule 4619A. The rule change proposal became effective contemporaneous with the Commission's approval. *See* Securities Exchange Act Release No. 49029 (January 6, 2004), 69 FR 2167 (January 14, 2004). On December 4, 2003, NASD filed for immediate effectiveness SR-NASD-2003-181 to amend Rule 4613A(c) to clarify that NASD may suspend quotations in the ADF displayed by any market participant, including an electronic communications network (“ECN”), that are no longer reasonably related to the prevailing market. *See* Securities Exchange Act Release No. 49075 (January 14, 2004), 69 FR 3414 (January 23, 2004). On March 12, 2004, the Commission approved SR-NASD-2003-175, a proposal to repeal Rule 4613A(e)(1), which required a member that displays priced quotations for a Nasdaq security in two or more market centers to display the same priced quotations for that security in each market center. *See* Securities Exchange Act Release No. 49413 (March 12, 2004), 69 FR 12882 (March 18, 2004). On August 18, 2004, the Commission approved SR-NASD-2004-002, a proposed rule change to amend NASD Rule 4300A to require an ADF Market Participant to provide advance written notice to NASD's ADF Market Operations before denying electronic access to its ADF quote to any NASD member in the limited circumstances where a broker-dealer fails to pay contractually obligated costs for access to the Market Participant's quotations. *See* Securities Exchange Act Release No. 50218 (August 18, 2004), 69 FR 52055 (August 24, 2004). On March 10, 2005, the Commission approved SR-NASD-2004-159, a proposed rule change to establish Rule 4400A, which gives NASD authority to receive and review complaints against ADF Market Participants that allege denial of direct or indirect access pursuant to NASD Rule 4300A. *See* Securities Exchange Act Release No. 51356 (March 10, 2005), 70 FR 12924 (March 16, 2005). 12 On August 8, 2006, NASD filed SR-NASD-2006-096 as an immediately effective rule change. This rule change amended Rule 4613A and adopted IM-4613A-1 to enable ECN members that post quotations through the ADF to request and receive multiple market participant identifiers. *See* Securities Exchange Act Release No. 54307 (August 11, 2006), 71 FR 47551 (August 17, 2006). It should be noted that NASD is not requesting that SR-NASD-2006-096 operate on a permanent basis. Rather, NASD is requesting that this remain a pilot and will address this in a separate rule filing. NASD believes that the ADF has been operating successfully during the pilot period. The Commission acknowledged this fact when it approved the launch of SuperMontage, stating that the ADF met the conditions set forth in its SuperMontage Approval Order to provide an alternative quotation collection, trade comparison, and trade reporting facility. NASD believes that the ADF has since continued to honor those conditions. Moreover, on September 28, 2006, the Commission approved SR NASD-2006-91, 13 which, among other things, amended the ADF rules governing quoting, trade reporting, and clearing applicable to the ADF and extended this functionality to all NMS stocks. 14 Accordingly, NASD believes it is appropriate to approve the operation of ADF on a permanent basis. 13 *See* Securities Exchange Act Release No. 54537 (September 28, 2006), 71 FR 59173 (October 6, 2006). 14 In addition, on January 5, 2007, NASD filed SR-NASD-2007-001 for immediate effectiveness. This rule filing amended certain ADF rules to:

(1)Expand the prohibition on locking and crossing quotations in NMS stocks to include pre-opening and post-closing quotations;

(2)extend the obligation to comply with ADF rules to pre-opening quotes; and

(3)replace the specific modifiers identified in Rule 4632(A)(a)(4) with a more general reference to modifiers as specified by NASD. *See* Securities Exchange Act Release No. 55088 (January 11, 2007), 72 FR 2573 (January 19, 2007). While NASD is requesting that the amendments made to ADF rules in both SR-NASD 2006-091 and SR-NASD-2007-001 also become permanent, it should be noted that they will not be implemented until the Regulation NMS Trading Phase Date. NASD proposes that the proposed rule change be operative on January 27, 2007. 2. Statutory Basis NASD believes that the proposed rule change is consistent with the provisions of Section 15A(b)(6) of the Act, 15 which requires, among other things, that NASD rules must be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, and, in general, to protect investors and the public interest. NASD believes that approval of the operation of ADF rules on a permanent basis provides an effective mechanism for quoting and trading activities otherwise than on an exchange. 15 15 U.S.C. 78 *o* -3(b)(6). B. Self-Regulatory Organization's Statement on Burden on Competition NASD does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others Written comments were neither solicited nor received. III. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission's Internet comment form ( *http://www.sec.gov/rules/sro.shtml* ); or • Send an e-mail to *rule-comments@sec.gov.* Please include File Number SR-NASD-2007-005 on the subject line. Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-NASD-2007-005. 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 publicly available. All submissions should refer to File Number SR-NASD-2007-005 and should be submitted on or before February 23, 2007. 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 national securities association. 16 Specifically, the Commission believes that the proposed rule change is consistent with Section 15A(b)(6) of the Act, 17 which requires that the rules of the self-regulatory organization are designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, and, in general, to protect investors and the public interest. In addition, the Commission believes that the proposal is consistent with Section 15A(b)(11) of the Act 18 in that it is designed to produce fair and informative quotations, to prevent fictitious or misleading quotations, and to promote orderly procedures for collecting, distributing, and publishing quotations. 16 In approving this proposal, the Commission has considered its impact on efficiency, competition, and capital formation. *See* 15 U.S.C. 78c(f). 17 15 U.S.C. 78 *o* -3(b)(6). 18 15 U.S.C. 78 *o* -3(b)(11). In approving SR-NASD-2006-091, which, among other things, amended the ADF rules to align them with Regulation NMS, the Commission considered and addressed the regulatory issues regarding NASD's operation of the ADF. The Commission believes the instant proposal to make the ADF permanent does not raise any new regulatory issues. For the same reasons stated in its order approving SR-NASD-2006-091, the Commission believes that this proposal is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities association. NASD has requested that the Commission find good cause for approving the proposed rule change prior to the thirtieth day after publication of notice thereof in the **Federal Register.** The Commission believes that granting accelerated approval of the proposed rule change is appropriate because the proposed rule change does not raise any new regulatory issues. In addition, SR-NASD-2006-091 went through a full notice-and-comment period, and no comments were received. Accelerated approval of this proposal will allow the benefits of the ADF to continue without a lapse in the pilot due to expire on January 26, 2007. Accordingly, the Commission finds good cause, pursuant to Section 19(b)(2) of the Act, 19 for approving the proposed rule change prior to the thirtieth day after the date of publication of notice thereof in the **Federal Register.** 19 15 U.S.C. 78s(b)(2). V. Conclusion *It is therefore ordered,* pursuant to Section 19(b)(2) of the Act, 20 that the proposed rule change (SR-NASD-2007-005) be, and hereby is, approved on an accelerated basis. 20 15 U.S.C. 78s(b)(2). For the Commission, by the Division of Market Regulation, pursuant to delegated authority. 21 21 17 CFR 200.30-3(a)(12). Florence E. Harmon, Deputy Secretary. [FR Doc. E7-1688 Filed 2-1-07; 8:45 am] BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-55180; File No. SR-NASD-2007-004] Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Notice of Filing of a Proposed Rule Change to Amend NASD Rule 7010(k) Relating to Transaction Reporting and Compliance Engine Transaction Data January 26, 2007. 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 January 16, 2007, the National Association of Securities Dealers, Inc. (“NASD”) 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 substantially prepared by NASD. 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. I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change NASD is proposing to amend NASD Rule 7010(k) relating to Transaction Reporting and Compliance Engine (“TRACE”) transaction data to offer the ability to receive, for a reduced fee, a “snapshot” of real-time TRACE transaction data (“TRACE data”) once each day rather than continuously throughout the day. The text of the proposed rule change is available on NASD's Web site at *http://www.nasd.com/RulesRegulation/RuleFilings/2007RuleFilings/index.htm,* at NASD's principal office, and at 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, NASD included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposal. The text of these statements may be examined at the places specified in Item IV below. NASD 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 NASD proposes to amend its Rule 7010(k) to lower the fee related to the receipt of TRACE data by persons opting to receive the data once a day (“Snapshot TRACE data”) rather than on a continuous basis. Specifically, NASD is proposing to amend Rule 7010(k)(3)(A)(ii) to provide persons that choose to receive Snapshot TRACE data (“Snapshot TRACE data Subscribers”) the option of paying $250 per month for the receipt of Snapshot TRACE data rather than paying $1,500 per month to receive TRACE data continuously throughout the day as is the case today. A Snapshot TRACE data Subscriber would be able to choose the specific time of day it would receive Snapshot TRACE data each day, and NASD expects that many institutional Snapshot TRACE data Subscribers would choose to receive Snapshot TRACE data at or shortly after 4 p.m. (Eastern Standard Time) each day and use it to value certain positions held in their investment portfolios. Today, NASD's TRACE data dissemination, and the fees charged for it, contemplates only continuous intra-day dissemination of TRACE data. 3 However, based on discussions with certain TRACE data vendors and institutional market participants, NASD believes that an additional program of single intra-day or end-of-day price dissemination also would be useful. This is especially true for those institutional investors that need only one price per security per day to assign a value to a particular position. Transaction data for these types of position valuation purposes typically has been made available through vendor services such as IDC and the Reuters Pricing Service. Vendors usually charge for pricing requests for securities held in individual portfolios either on a per-CUSIP basis or for a fixed monthly fee for a specified group of securities. 3 NASD has proposed adding the phrase “receipt of continuous ” to the text of Rule 7010(k)(3)(a)(ii) that today sets forth the $1,500 per month fee for TRACE data to further clarify the distinction between the current and proposed frequency of delivery of TRACE data to persons subscribing to receive such data. NASD believes, based on conversations its staff has undertaken with certain vendors of TRACE data and certain institutional market participants, that the current price charged to persons receiving TRACE data continuously throughout the day ($1,500 per month) is unnecessarily expensive for persons that would like to exclusively use TRACE data to value portfolio positions. In this regard, NASD notes that, to date, no institutional market participants have subscribed for the receipt of TRACE data continuously throughout the day. If the proposed rule change is approved by the Commission, NASD intends to work with third-party “Retransmission Vendors” that would redistribute Snapshot TRACE data to Snapshot TRACE data Subscribers. As is the case today with the distribution of TRACE data to desktop display applications, NASD does not intend to develop its own capabilities to distribute Snapshot TRACE data directly to Snapshot TRACE data Subscribers. NASD believes that the proposed fee of $250 per month for Snapshot TRACE data is reasonable, particularly as it is a charge more in line with what NASD perceives to be the more tailored information requirements of a subset of institutional market participants that today are foregoing TRACE data at the higher costs per month for continuous data. NASD would announce the effective date of the proposed rule change in a *Notice to Members* to be published no later than 60 days following Commission approval, if approval is given. The effective date would be not later than 45 days following publication of the *Notice to Members* announcing Commission approval. 2. Statutory Basis NASD believes that the proposed rule change is consistent with the provisions of Section 15A(b)(6) of the Act, which requires, among other things, that NASD rules must be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, and, in general, to protect investors and the public interest and Section 15A(b)(5) of the Act, which requires, among other things, that NASD rules provide for the equitable allocation of reasonable dues, fees, and other charges among members and issuers and other persons using any facility or system that NASD operates or controls. NASD believes that offering Snapshot TRACE data for a reduced charge should result in more persons subscribing to receive TRACE data with a concomitant increase in market transparency resulting from the wider dissemination and use of TRACE data. B. Self-Regulatory Organization's Statement on Burden on Competition NASD does not believe that proposed rule change would 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 were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Within 35 days of the date of publication of this notice in the **Federal Register** or within such longer period

(i)as the Commission may designate up to 90 days of such date if it finds such longer period to be appropriate and publishes its reasons for so finding or

(ii)as to which NASD 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 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-2007-004 on the subject line. Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-NASD-2007-004. 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-2007-004 and should be submitted on or before February 23, 2007. For the Commission, by the Division of Market Regulation, pursuant to delegated authority. 4 4 17 CFR 200.30-3(a)(12). Florence E. Harmon, Deputy Secretary. [FR Doc. E7-1690 Filed 2-1-07; 8:45 am] BILLING CODE 8010-01-P SMALL BUSINESS ADMINISTRATION [Disaster Declaration #10794 and #10795] Pennsylvania Disaster #PA-00008 AGENCY: Small Business Administration. ACTION: Notice. SUMMARY: This is a notice of an Administrative declaration of a disaster for the Commonwealth of Pennsylvania Dated 01/25/2007. *Incident:* Fire. *Incident Period:* 01/11/2007. *Effective Date:* 01/25/2007. *Physical Loan Application Deadline Date:* 03/26/2007. *Economic Injury

(EIDL)Loan Application Deadline Date:* 10/25/2007. 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: Bedford. Contiguous Counties: Pennsylvania; Blair, Cambria, Fulton, Huntingdon, Somerset. Maryland; Allegany. The Interest Rates are: Percent Homeowners With Credit Available Elsewhere 6.000 Homeowners Without Credit Available Elsewhere 3.000 Businesses With Credit Available Elsewhere 8.000 Businesses & Small Agricultural Cooperatives Without Credit Available Elsewhere 4.000 Other (Including Non-Profit Organizations) With Credit Available Elsewhere 5.250 Businesses and Non-Profit Organizations Without Credit Available Elsewhere 4.000 The number assigned to this disaster for physical damage is 10794 5 and for economic injury is 10795 0. The States which received an EIDL Declaration # are: Pennsylvania, Maryland. (Catalog of Federal Domestic Assistance Numbers 59002 and 59008). Dated: January 25, 2007. Steven C. Preston, Administrator. [FR Doc. E7-1705 Filed 2-1-07; 8:45 am] BILLING CODE 8025-01-P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration Notice of Intent To Rule on Request To Release Airport Property at Monroe Regional Airport, Monroe, LA AGENCY: Federal Aviation Administration

(FAA)DOT. ACTION: Request for public comment. SUMMARY: The FAA proposes to rule and invites public comment on the release of land at Monroe Regional Airport under the provisions of Title 49, U.S.C. 47153(c). DATES: Comments must be received on or before March 5, 2007. ADDRESSES: Comments on this application may be mailed or delivered to the FAA at the following address: Mr. Joseph G. Washington, Manager, Federal Aviation Administration, Southwest Region, Airports Division, Louisiana/New Mexico Airports Development Office, ASW-640, Fort Worth, Texas 76193-0640. In addition, one copy of any comments submitted to the FAA must be mailed or delivered to Mayor James E. Mayo at the following address: Office of the Mayor, P.O. Box 123, Monroe, LA 71210. FOR FURTHER INFORMATION CONTACT: Joseph G. Washington, Manager, Federal Aviation Administration, Louisiana/New Mexico Airports Development Office, ASW-640, 2601 Meacham Blvd., Fort Worth, Texas 76193-0640. The request to release property may be reviewed in person at this same location. SUPPLEMENTARY INFORMATION: The FAA invites public comment on the request to release property at the Monroe Regional Airport. On January 24, 2007, the FAA determined that the request to release property at Monroe Regional Airport submitted by the City of Monroe met the procedural requirements of the Federal Aviation Regulations, Part 155. The FAA may approve the request, in whole or in part, no later than March 5, 2007. The following is a brief overview of the request: The City of Monroe, Louisiana requests the release of 7.588 acres of airport property. The release of property will allow for construction of a new 80,000 square foot warehouse facility and rail access for Allied Building Stores, Inc. to proceed. The sale is estimated to provide $91,000.00 whereas the proceeds will go to continue the Bermuda Release Program (turf improvement on the airfield) and expansion of the security camera system in the terminal building and on the airfield. Any person may inspect the request in person at the FAA office listed above under FOR FURTHER INFORMATION CONTACT. In addition, any person may, upon request, inspect the application, notice and other documents germane to the application in person at the Monroe Regional Airport, Monroe, Louisiana. Issued in Fort Worth, Texas, on January 26, 2007. Kelvin L. Solco, Manager, Airports Division. [FR Doc. 07-468 Filed 2-1-07; 8:45 am]

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