Notices. Notice of approval
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/register/2007/04/10/07-1747A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
BILLING CODE 3210-01-M PENSION BENEFIT GUARANTY CORPORATION Approval of Exemption From the Bond/Escrow Requirement Relating to the Sale of Assets by an Employer Who Contributes to a Multiemployer Plan; Washington Nationals Baseball Club, LLC AGENCY: Pension Benefit Guaranty Corporation. ACTION: Notice of approval. SUMMARY: The Pension Benefit Guaranty Corporation has granted a request from the Washington Nationals Baseball Club, LLC for an exemption from the bond/escrow requirement of section 4204(a)(1)(B) of the Employee Retirement Income Security Act of 1974, as amended, with respect to the Major League Baseball Players Benefit Plan.
A notice of the request for exemption from the requirement was published on January 31, 2007 (72 FR 4538). The effect of this notice is to advise the public of the decision on the exemption request. ADDRESSES: The non-confidential portions of the request for an exemption and any PBGC response to the request may be obtained by writing PBGC's Communications and Public Affairs Department
(CPAD)at Suite 1200, 1200 K Street, NW., Washington, DC 20005-4026, or by visiting or calling CPAD during normal business hours (202-326-4040). FOR FURTHER INFORMATION CONTACT: Eric Field, Office of the Chief Counsel, Pension Benefit Guaranty Corporation, 1200 K Street, NW., Washington, DC 20005-4026; telephone 202-326-4020. (For TTY/TDD users, call the Federal Relay Service toll-free at 1-800-877-8339 and ask to be connected to 202-326-4020). SUPPLEMENTARY INFORMATION: Background Section 4204 of the Employee Retirement Income Security Act of 1974, as amended by the Multiemployer Pension Plan Amendments Act of 1980 (“ERISA” or “the Act”), provides that a bona fide arm's-length sale of assets of a contributing employer to an unrelated party will not be considered a withdrawal if three conditions are met. These conditions, enumerated in section 4204(a)(1)(A)-(C), are that—
(A)The purchaser has an obligation to contribute to the plan with respect to the operations for substantially the same number of contribution base units for which the seller was obligated to contribute;
(B)The purchaser obtains a bond or places an amount in escrow, for a period of five plan years after the sale, in an amount equal to the greater of the seller's average required annual contribution to the plan for the three plan years preceding the year in which the sale occurred or the seller's required annual contribution for the plan year preceding the year in which the sale occurred (the amount of the bond or escrow is doubled if the plan is in reorganization in the year in which the sale occurred); and
(C)The contract of sale provides that if the purchaser withdraws from the plan within the first five plan years beginning after the sale and fails to pay any of its liability to the plan, the seller shall be secondarily liable for the liability it (the seller) would have had but for section 4204. The bond or escrow described above would be paid to the plan if the purchaser withdraws from the plan or fails to make any required contributions to the plan within the first five plan years beginning after the sale. Additionally, section 4204(b)(1) provides that if a sale of assets is covered by section 4204, the purchaser assumes by operation of law the contribution record of the seller for the plan year in which the sale occurred and the preceding four plan years. Section 4204(c) of ERISA authorizes the Pension Benefit Guaranty Corporation (“PBGC”) to grant individual or class variances or exemptions from the purchaser's bond/escrow requirement of section 4204(a)(1)(B) when warranted. The legislative history of section 4204 indicates a Congressional intent that the sales rules be administered in a manner that assures protection of the plan with the least practicable intrusion into normal business transactions. Senate Committee on Labor and Human Resources, 96th Cong., 2nd Sess., S. 1076, The Multiemployer Pension Plan Amendments Act of 1980: Summary and Analysis of Considerations 16 (Comm. Print, April 1980); 128 Cong. Rec. S10117 (July 29, 1980). The granting of an exemption or variance from the bond/escrow requirement does not constitute a finding by the PBGC that a particular transaction satisfies the other requirements of section 4204(a)(1). Under the PBGC's regulation on variances for sales of assets (29 CFR Part 4204), a request for a variance or waiver of the bond/escrow requirement under any of the tests established in the regulation (sections 4204.12 & 4204.13) is to be made to the plan in question. The PBGC will consider waiver requests only when the request is not based on satisfaction of one of the three regulatory tests or when the parties assert that the financial information necessary to show satisfaction of one of the regulatory tests is privileged or confidential financial information within the meaning of 5 U.S.C. 552(b)(4) of the Freedom of Information Act. Under section 4204.22 of the regulation, the PBGC shall approve a request for a variance or exemption if it determines that approval of the request is warranted, in that it—
(1)Would more effectively or equitably carry out the purposes of Title IV of the Act; and
(2)Would not significantly increase the risk of financial loss to the plan. Section 4204(c) of ERISA and section 4204.22(b) of the regulation require the PBGC to publish a notice of the pendency of a request for a variance or exemption in the **Federal Register** , and to provide interested parties with an opportunity to comment on the proposed variance or exemption. The PBGC received no comments on the request for exemption. Decision On January 31, 2007, the PBGC published a notice of the pendency of a request by the Washington Nationals Baseball Club, LLC (the “Buyer”) for an exemption from the bond/escrow requirement of section 4204(a)(1)(B) with respect to its purchase of the Washington Nationals Baseball Team from Baseball Expos, L.P. (the “Seller”) (72 FR 4538). According to the request, the Major League Baseball Players Benefit Plan (the “Plan”) was established and is maintained pursuant to a collective bargaining agreement between the professional major league baseball teams (the “Clubs”) and the Major League Baseball Players Association (the “Players Association”). According to the Buyer's representations, the Seller was obligated to contribute to the Plan for certain employees of the sold operations. Pursuant to an agreement dated April 24, 2006, the Buyer and Seller entered into an agreement under which the Buyer agreed to purchase substantially all of the assets and assume substantially all of the liabilities of the Seller relating to the business of employing employees under the Plan. The Buyer agreed to contribute to the Plan for substantially the same number of contribution base units as the Seller. The Seller agreed to be secondarily liable for any withdrawal liability it would have had with respect to the sold operations (if not for section 4204) should the Buyer withdraw from the Plan within the five plan years following the sale and fail to pay its withdrawal liability. The amount of the bond/escrow required under section 4204(a)(1)(B) of ERISA is $2,803,040. The estimated amount of the unfunded vested benefits allocable to the Seller with respect to the operations subject to the sale is $14,454,124. While the separate major league clubs are the nominal contributing employers to the Plan, the Major League Central Fund under the Office of the Commissioner receives the revenues and makes the payments for certain common expenses, including each club's contribution to the Plan. In support of the waiver request, the requester asserts that: “The Plan is funded directly from Revenues which are paid from the Central Fund directly to the Plan without passing through the hands of any of the clubs. Therefore, the Plan enjoys a substantial degree of security with respect to contributions on behalf of the clubs. A change in ownership of a club does not affect the obligation of the Central Fund to fund the Plan out of the Revenue. As such, approval of this exemption request would not significantly increase the risk of financial loss to the Plan.” Based on the facts of this case and the representations and statements made in connection with the request for an exemption, the PBGC has determined that an exemption from the bond/escrow requirement is warranted, in that it would more effectively carry out the purposes of Title IV of ERISA and would not significantly increase the risk of financial loss to the Plan. Therefore, the PBGC hereby grants the request for an exemption for the bond/escrow requirement. The granting of an exemption or variance from the bond/escrow requirement of section 4204(a)(1)(B) does not constitute a finding by the PBGC that the transaction satisfies the other requirements of section 4204(a)(1). The determination of whether the transaction satisfies such other requirements is a determination to be made by the Plan sponsor. Issued at Washington, DC, on this 30th day of March, 2007. Vincent K. Snowbarger, Interim Director, Pension Benefit Guaranty Corporation. [FR Doc. E7-6706 Filed 4-9-07; 8:45 am] BILLING CODE 7708-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-55570; File No. SR-CBOE-2007-15] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing of Proposed Rule Change To Amend CBOE's Membership Application Procedures To Incorporate Individuals Who Are Acting in an Exchange Trading Floor Capacity April 2, 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 February 14, 2007, The Chicago Board Options Exchange, Incorporated (“CBOE” 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 substantially prepared by CBOE. 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 the Substance of the Proposed Rule Change The Exchange proposes to amend its membership application procedures to incorporate those individuals who are acting in an Exchange trading floor capacity. Set forth below are the proposed changes to the rule text with additions in *italic* . Chicago Board Options Exchange, Incorporated Rules Rule 3.9. Application Procedures and Approval or Disapproval (a)-(f) No Change.
(g)Any person applying pursuant to paragraph
(a)of this Rule to have an authorized trading function is required to have completed the Exchange's Member Orientation Program and to have passed an Exchange Trading Member Qualification Exam. Additionally, any person who has completed the Member Orientation Program and taken and passed the applicable Trading Member Qualification Exam and who then does not possess an authorized trading function *or Exchange trading floor capacity* for more than 1 year is required to complete the Member Orientation Program and to re-pass the applicable Trading Member Qualification Exam in order to once again become eligible to have an authorized trading function. A person must score 75% or better on the applicable Trading Member Qualification Exam in order to pass the Exam. Any person who fails the applicable Trading Member Qualification Exam must wait 30 days to re-take the Exam after failing the Exam for the first time, must wait 60 days to re-take the Exam after failing the Exam for the second time, and must wait 120 days to re-take the Exam after failing the Exam for a third or subsequent time. The Exchange may not waive any of the requirements set forth in this paragraph (g). (h)-(l) No Change. * * * Interpretations and Policies: .01 No Change. .02 No Change. .03 *For purposes of this rule, “Exchange trading floor capacity” means any person who is acting on behalf of the Exchange in an Exchange trading floor capacity, such as a PAR Official, Order Book Official, or other similar function.* II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, CBOE 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. CBOE 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 Exchange Rule 3.9, entitled “Application Procedures and Approval or Disapproval,” outlines, among other things, the application procedures for an individual who desires to become a member of the Exchange. Paragraph
(g)of Exchange Rule 3.9 currently requires any person applying to the Exchange to
(i)have completed the Exchange's Member Orientation Program (“Orientation Program”) and
(ii)passed an Exchange Trading Member Qualification Exam (“Qualification Exam”). However, a person who has completed the Orientation Program and taken and passed the Qualification Exam but does not possess an authorized trading function for more than one year must again complete the Orientation Program and re-pass the Qualification Exam. This filing proposes to amend CBOE's rules to provide that PAR Officials and Order Book Officials, as described in CBOE's rules and discussed below, as well as others acting in a similar capacity ( *i.e.* , an Exchange trading floor capacity), shall be included in the rule, in addition to those who possess an authorized trading function, since both functions are similar. On November 18, 2005, the Commission approved a filing which created a new category of market participant called “PAR Officials.” 3 The PAR Official was established in response to the elimination of CBOE's rules as applied to Designated Primary Market-Makers (“DPMs”) executing orders as agents or Floor Brokers in their allocated option classes. The PAR Official is responsible for operating the PAR workstation trading stations, including handling and executing orders that are routed to the PAR workstation. 3 *See* Securities Exchange Act Release No. 52798 (November 18, 2005), 70 FR 71344 (November 28, 2005) (SR-CBOE-2005-46). Specifically, the PAR Official is an Exchange employee or independent contractor designated by the Exchange to be responsible for
(i)operating the PAR workstation;
(ii)when applicable, maintaining the customer limit order book for the assigned option classes; 4 and
(iii)effecting proper executions of orders placed with him. 4 This provision will not apply to option classes that are on the CBOE's Hybrid System. In addition to PAR Officials, the Exchange also employs “Order Book Officials” (“OBOs”) whose responsibilities include, among other things,
(i)maintaining the book with respect to the classes of options assigned to him,
(ii)effecting proper executions of orders placed with him,
(iii)displaying bids and offers, and
(iv)monitoring the market for the classes of options assigned to him. The Exchange may employ former members, who previously acted in the capacity of a DPM before the initiation of the PAR Official, to act on behalf of the Exchange in a trading floor capacity. If these PAR Officials and OBOs become members of the Exchange after working for the Exchange in a trading floor capacity for longer than one year, these individuals would have to again complete the Orientation Program and re-pass the Qualification Exam under current CBOE Rule 3.9, since they would have not possessed an authorized trading function for longer than one year. These PAR Officials and OBOs, while acting in an Exchange trading floor capacity, are ultimately acting in the same capacity as when they were operating in a DPM capacity prior to the initiation of the PAR Official trading floor capacity. Therefore, the Exchange feels that it is appropriate to amend its procedures to allow for the one year period under CBOE Rule 3.9(g) to be applied to not only an individual who has possessed an authorized trading function, but also to an individual who has acted in an Exchange trading floor capacity, since both functions are similar. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act, 5 in general and furthers the objectives of Section 6(b)(5) of the Act, 6 in particular, in that it should promote just and equitable principles of trade, serve to remove impediments to and perfect the mechanism of a free and open market and a national market system and protect investors and the public interest. 5 15 U.S.C. 78f. 6 15 U.S.C. 78f(b)(5). B. Self-Regulatory Organization's Statement on Burden on Competition This 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 CBOE 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-CBOE-2007-15 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-CBOE-2007-15. 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 CBOE. 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-CBOE-2007-15 and should be submitted on or before May 1, 2007. For the Commission, by the Division of Market Regulation, pursuant to delegated authority. 7 7 17 CFR 200.30-3(a)(12). Florence E. Harmon, Deputy Secretary. [FR Doc. E7-6671 Filed 4-9-07; 8:45 am] BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-55575; File No. SR-ISE-2006-59] Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing of Amendment No. 2 to and Order Granting Accelerated Approval of a Proposed Rule Change as Modified by Amendment Nos. 1 and 2 Thereto Relating to Foreign Currency Options April 3, 2007. I. Introduction On September 29, 2006, the International Securities Exchange, LLC (“ISE” 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 adopt rules for the listing and trading of cash-settled rate-modified foreign currency options (“FCOs”). 3 On February 23, 2007, the Exchange filed Amendment No. 1 to the proposed rule change. 4 The proposed rule change, as modified by Amendment No. 1, was published for comment in the **Federal Register** on March 1, 2007. 5 The Commission received no comments on the proposal. On April 3, 2007, the Exchange filed Amendment No. 2 to the proposed rule change. 6 This order provides notice of Amendment No. 2 to the proposed rule change and approves the proposed rule change, as modified by Amendment Nos. 1 and 2, on an accelerated basis. 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b-4. 3 The Commission notes that the cash-settled FCOs that ISE proposes to list and trade pursuant to this proposed rule change are rate-modified. Cash-settled foreign currency options that trade on the Philadelphia Stock Exchange (“Phlx”) are not rate-modified. *See* Securities Exchange Act Release No. 54989 (December 21, 2006), 71 FR 78506 (December 29, 2006) (SR-PHLX-2006-34). *See also* Phlx Rules 1000-1093. Accordingly, the term “FCO” used throughout this Order refers only to ISE's proposed cash-settled rate-modified foreign currency options. FCOs listed and traded by ISE pursuant to this proposed rule change will not be fungible with those listed and traded by Phlx. 4 Amendment No. 1 replaced and superseded the original filing in its entirety. 5 *See* Securities Exchange Act Release No. 55336 (February 23, 2007), 72 FR 09364 (“Notice”). 6 The text of Amendment No. 2 is available at the Exchange, on the Exchange's Web site ( *http://www.iseoptions.com* ), and at the Commission's Public Reference Room. In Amendment No. 2, ISE clarified its plans to list cross-rate FCOs by specifying the cross-rate pairs it intends to offer as well as the applicable modifier and position limits for each proposed cross-rate pair. ISE also made a non-substantive change to the title of the proposed rule text and to the text of proposed ISE Rule 2200. II. Description of the Proposal A. Product Specifications The Exchange proposes to adopt rules for the listing and trading of FCOs 7 on the following currencies: The euro, the British pound, the Australian dollar, the New Zealand dollar, the Japanese yen, the Canadian dollar, the Swiss franc, the Chinese renminbi, the Mexican peso, the Swedish krona, the Russian ruble, the South African rand, the Brazilian real, the Israeli shekel, the Norwegian krone, the Polish zloty, the Hungarian forint, the Czech koruna and the Korean won (individually, a “Currency” and collectively, the “Currencies”). 8 The Exchange proposes to list and trade FCOs that include the U.S. Dollar on one side of the underlying currency pair, as well as certain cross-rate FCOs that include two of the aforementioned Currencies in the underlying currency pair (“cross-rate FCOs”). 9 7 The Commission notes that ISE refers to these FCO products in its marketing literature as “FX Options TM .” 8 The Exchange's existing rules and procedures would also be applicable to FCOs, unless such rules are specifically replaced or are supplanted by the proposed new rules governing FCOs. *See* Proposed ISE Rule 2200. The Commission notes that futures contracts, and options on such futures contracts, are currently traded by the Chicago Mercantile Exchange (“CME”) on all of the Currencies. 9 *See* Amendment No. 2. In other words, a cross-rate FCO would not involve the U.S. Dollar on one side of the underlying currency pair ( *e.g.* , EUR/GBP). The Exchange proposes to list and trade FCOs based on the Reuters Composite Currency Rate 10 as modified by ISE in a way that permits the underlying price of the FCO contract to resemble a price level similar to that of an index option. 11 The Exchange proposes to use fixed, pre-assigned modifiers of 1, 10, or 100 depending on the exchange rate level of the underlying foreign currency. 12 The Exchange would disseminate the current modified exchange rate 13 at least once every fifteen seconds through the Options Price Reporting Authority (“OPRA”) or one or more major market data vendors during the time FCOs are traded on the Exchange. 14 FCOs would be quoted in U.S. Dollars and would be European-style exercise. 10 The Reuters data is based on an amalgamation of midpoint dealer quotes on its foreign exchange dealing system. 11 *See* Proposed ISE Rule 2201(8) (defining “modified exchange rate”). 12 For example, if one U.S. Dollar buys .84177 euros, a modifier of 100 would be used so that the modified exchange rate would become 84.18. Modifiers used for creating underlying values will be posted on the Exchange's Web site no later than the first day on which FCOs begin trading on ISE. Once a modifier has been assigned to a currency pair, it can only be changed upon a filing of a proposed rule change with the Commission. 13 *See* Proposed ISE Rule 2201(8). 14 *See* Proposed ISE Rule 2207. The Exchange will also disseminate FCO quotes and trades through OPRA. FCOs listed by the Exchange would be cleared by The Options Clearing Corporation (“OCC”), 15 and holders of options contracts would receive U.S. Dollars representing the difference between the modified exchange rate and the exercise price 16 of the option, which would be multiplied by 100. Specifically, upon exercise of an in-the-money FCO call option, the holder would receive from OCC, U.S. Dollars representing the difference between the exercise price and the closing settlement value of the FCO contract multiplied by 100. Upon exercise of an in-the-money FCO put option, the holder would receive from OCC, U.S. Dollars representing the excess of the exercise price over the closing settlement value of the cash-settled FCO contract multiplied by 100. Additionally, FCOs that are in-the-money by any amount on the expiration date would be exercised automatically by OCC, while FCOs that are out-of-the-money on the expiration date would expire worthless. 15 *See* File No. SR-OCC-2007-02 (proposing to amend OCC's by-laws and rules to accommodate the clearance and settlement of ISE's FCOs). 16 *See* Proposed ISE Rule 2201(3) (defining “exercise price”). *Minimum Increments.* The interval between exercise prices of series of FCOs would be no less than $0.10. 17 Additionally, under the Exchange's current rules, the minimum trading increment for a FCO contract trading at less than $3.00 would be $0.05, and for a FCO contract trading at $3.00 or higher, the minimum trading increment would be $0.10. 17 *See* Proposed ISE Rule 2206(a)(4). *Expirations.* The Exchange proposes to permit FCOs to be listed with expirations that are the same as the expirations permitted for index options, 18 except that FCOs would be permitted to have expirations only up to 36 months. 19 Accordingly, after a class of options contracts involving any of the Currencies has been approved for listing and trading, the Exchange could open for trading series of FCOs that expire in consecutive monthly intervals, that expire in three or “cycle” month intervals, 20 or that have up to 36 months to expiration. 21 The expiration date for the consecutive and cycle month options would be 11:59 p.m. Eastern Time on the Saturday immediately following the third Friday of the expiration month. 18 *See* ISE Rules 2000 and 2001. 19 *See* Proposed ISE Rule 2205. While the proposed rules would permit the Exchange to list FCOs that have up to 36 months to expiration, the Exchange has stated that it does not anticipate listing these long-term series initially. 20 Consecutive month and cycle month expirations of a given series will never overlap. *See* Proposed ISE Rule 2205(a)(1). 21 *See* Proposed ISE Rule 2205; *see also* Notice, *supra* note 5 (describing the proposed provisions governing the listing and trading of series of FCOs). *Settlement Value.* The closing settlement value would be based on the Noon Buying Rate (to the extent it is maintained for the applicable Currency), as determined by the Federal Reserve Bank of New York, on the last trading day during expiration week, 22 and would be modified using the applicable modifier that is used in calculating the respective modified exchange rate. 23 If the Noon Buying Rate is not announced by 2 p.m. Eastern Time, the closing settlement value would be the most recently announced Noon Buying Rate, as modified by the applicable modifier, unless the Exchange determines to apply an alternative closing settlement value as a result of extraordinary circumstances. 24 In the event that the Noon Buying Rate is not published for an underlying Currency, the Exchange proposes to apply the WM/Reuters Closing Spot rate to determine the closing settlement value. 25 Like the Noon Buying Rate, in determining the closing settlement value, the WM/Reuters Closing spot rate would be modified using the applicable modifier that is used in calculating the respective modified exchange rate. The Exchange proposes to post closing settlement values on its Web site, but such values would not be disseminated through OPRA. 26 22 If Friday is an Exchange holiday, the settlement value for FCOs would be determined on the preceding trading day, which will also be the last trading day for the expiring option. 23 *See* Proposed ISE Rule 2212; *see also supra* note 12 and accompanying text (discussing rate modifiers). 24 In such cases, the Exchange has stated that it may use the WM/Reuters Closing Spot rate. 25 *See* Notice, *supra* note 5 (providing a detailed discussion of how the WM/Reuters Closing Spot rate is calculated and providing a list of the Currencies for which the Federal Reserve Bank of New York does not currently publish a Noon Buying Rate). In the event the Federal Reserve Bank of New York begins to publish a Noon Buying Rate for any of the Currencies for which it currently does not publish a Noon Buying Rate, the Exchange would resort to the Noon Buying Rate in place of the WM/Reuters Composite Spot rate to determine the closing settlement value for the applicable FCO. 26 The Commission notes that, as discussed above, modified exchange rates will be disseminated through OPRA, as will FCO quotes and trades, while closing settlement values will only be posted on the Exchange's Web site. Investors should consult these values when trading FCOs. *Position Limits.* The Exchange proposes to impose the following position limits for FCOs involving the U.S. Dollar on the same side of the market: 1,200,000 contracts for the euro; 600,000 contracts for the Australian dollar, the British pound, the Canadian dollar, the Israeli shekel, the Japanese yen, the Swedish krona and the Swiss franc; 300,000 contracts for the remaining Currencies. 27 Position limits for each of the proposed cross-rate FCOs are specified in proposed ISE Rule 2008. 28 Exercise limits for FCOs over any five consecutive business days would be equivalent to the position limits prescribed to that FCO. 29 27 *See* Proposed ISE Rule 2208. For the purpose of determining which positions are on the same side of the market, long call positions would be aggregated with short put positions and short call positions would be aggregated with long put positions. 28 *See* Amendment No. 2 and proposed ISE Rule 2208(a). 29 *See* Proposed ISE Rule 2209. *Hours of Trading.* The Exchange proposes to permit trading of FCOs on the Exchange between the hours of 9:30 a.m. and 4:15 p.m. Eastern Time, except that on the last trading day of the week during which a FCO is set to expire, trading would cease at 12 p.m. Eastern Time. 30 The opening rotation for FCOs would be held at or as soon as practicable after the Exchange's market opens, unless an Exchange official determines to delay the opening rotation in the interest of maintaining a fair and orderly market. 31 Trading in FCOs would follow the holiday schedule of the U.S. equity markets. 30 *See* Proposed ISE Rule 2210(a). 31 *See* Proposed ISE Rule 2210(b); *see also* Notice, *supra* note 5 (providing further details regarding trading rotations and instituting halts and suspensions in the trading of an FCO). B. Market Makers The Exchange proposes to create two new classes of market makers on the Exchange that may quote and trade FCOs: FXPMMs ( *i.e.* , primary market makers) and FXCMMs ( *i.e.* , competitive market makers). 32 The Exchange states that such market makers would have similar obligations to the PMMs and CMMs on the Exchange's equity and index markets. The proposed rule sets forth the rules and the obligations of such market makers and the procedures under which an FXPMM and/or FXCMM would be able to purchase a trading license from the Exchange. 33 Market maker trading licenses for a calendar year would be sold annually through an auction conducted during the fourth quarter of the preceding year. 34 32 *See* Proposed ISE Rule 2213. 33 *See* Proposed ISE Rule 2213; *see also* Notice, *supra* note 5 (providing a detailed discussion of rules governing market maker trading licenses). Under the proposed rules, a firm would not be permitted to hold more than four FXPMM trading licenses across all currencies or more than one FXCMM trading license per currency pair. Additionally, market makers would not be permitted to hold and act as both a FXPMM and FXCMM in the same currency pair. Market maker trading licenses would generally not be able to be leased or transferred, although they would be permitted to be transferred to an affiliated Member, or to another qualified Member which continues substantially the same business as the Member that currently holds the market maker trading license. 34 *See* Proposed ISE Rule 2213; *see also* Notice, *supra* note 5 (describing the rules governing the auction processes). The Exchange proposes to assess market maker trading licenses that are sold between annual auctions a premium of ten percent of the price at which the market maker trading license was sold during the preceding auction. *FXPMM.* The Exchange proposes to offer one FXPMM trading license per currency pair by a sealed bid auction, and prospective FXPMMs would be required to submit a bid amount with a market quality commitment using parameters similar to those currently used by the Exchange for ETF and index options. 35 An FXPMM's trading license would have a three year term, 36 and at the end of the three year term, the incumbent FXPMM would have the right of first refusal to match the highest bid and market quality commitment from another bidding firm. An FXPMM that continuously fails to meet its stated market quality commitments would have its trading license terminated. 35 *See* Proposed ISE Rule 2213(f). 36 The proposed rule provides that an FXPMM generally would not be permitted to terminate its trading license. In the event a FXPMM is unable to fulfill its obligations, a backup FXPMM would be designated by the Exchange; however, the FXPMM would be required to continue to pay its trading license price until the license expires. *See* Proposed ISE Rule 2213(f)(6). *FXCMM.* The Exchange proposes to initially sell ten FXCMM trading licenses per currency pair, with each trading license having a term of one year. 37 The Exchange proposes to conduct a “Dutch” auction to sell FXCMM trading licenses. 38 An FXCMM would have the ability to terminate its trading license prior to its scheduled expiration, so long as the FXCMM provides the requisite written notice and pays a termination fee. 39 37 *See* Proposed ISE Rule 2213(g). Based on market demand, the Exchange may increase the number of FXCMM trading licenses available at the next regularly scheduled auction. 38 *See* Proposed ISE Rule 2213(g)(2) (setting forth the manner in which the Exchange will conduct the “Dutch” auction). 39 *See* Proposed ISE Rule 2213(g)(4). C. Margin The Exchange is also proposing to amend its existing margin requirements by adopting a provision for FCOs that is substantially similar to the Phlx's margin rules for foreign currency options. 40 Accordingly, FCOs would have the same customer margin requirements as are provided in Phlx Rule 722, “Margin Accounts,” Commentary .16. 41 The Exchange would inform Members and the public of the margin levels for each currency option immediately following the quarterly reviews described in the proposed rule. 40 *See* Proposed ISE Rule 1202(d). 41 Similar to Phlx Rule 722, Commentary .16, the Exchange would calculate the margin requirement for customers that assume short FCO positions by adding a percentage of the current market value of the underlying foreign currency contract to the option premium price less an adjustment for the out-of-the-money amount of the option contract. On a quarterly calendar basis, ISE would review five-day price changes over the preceding three-year period for each underlying currency and set the add-on percentage at a level which would have covered those price changes at least 97.5% of the time (the “confidence level”). If the results of subsequent reviews show that the current margin level provides a confidence level below 97%, ISE would increase the margin requirement for that individual currency up to a 98% confidence level. If the confidence level is between 97% and 97.5%, the margin level would remain the same but will be subject to monthly follow-up reviews until the confidence level exceeds 97.5% for two consecutive months. If during the course of the monthly follow-up reviews, the confidence level drops below 97%, the margin level would be increased to a 98% level and if it exceeds 97.5% for two consecutive months, the currency would be taken off monthly reviews and will be put back on the quarterly review cycle. If the currency exceeds 98.5%, the margin level would be reduced to a 98% confidence level during the most recent 3 year period. Finally, in order to account for large price movements outside the established margin level, if the quarterly review shows that the currency had a price movement, either positive or negative, greater than two times the margin level during the most recent 3 year period, the margin requirement would be set at a level to meet a 99% confidence level (“Extreme Outlier Test”). D. Customer Protection and Surveillance The Exchange's existing rules designed to protect public customer trading would apply to trading in FCOs. Specifically, ISE Rules 608(a) and
(b)prohibit Members from accepting a customer order to purchase or write an option unless such customer's account has been approved in writing by a designated Options Principal of the Member. Additionally, ISE Rule 610 regarding suitability provides that options should only be sold to customers capable of evaluating and bearing the risks associated with trading in this instrument. Further, ISE Rule 611 permits members to exercise discretionary power with respect to trading options in a customer's account only if the Member has received prior written authorization from the customer and the account had been accepted in writing by a designated Options Principal. ISE Rule 611 also requires designated Options Principals or Representatives of a Member to approve and initial each discretionary order on the day the discretionary order is entered. These customer protection rules, as well as ISE Rule 609, “Supervision of Accounts,” ISE Rule 612, “Confirmation to Customers,” and ISE Rule 616, “Delivery of Current Options Disclosure Documents and Prospectus,” 42 would apply to trading in FCOs. 42 The OCC, together with the Exchange, has prepared an amendment to the Options Disclosure Document (“ODD”), to include characteristics of the Exchange's FCOs and trading examples. FCOs would be covered under the ISE's existing surveillance program. Specifically, the Exchange has represented that it has an adequate surveillance program in place for FCOs, and intends to apply the same program procedures that it applies to the Exchange's index options. 43 The Exchange has also noted that it is a member of the Intermarket Surveillance Group (“ISG”) and may obtain trading information via the ISG from other exchanges who are members or affiliates of the ISG. 44 43 *See* Notice, *supra* note 5, at 72 FR 9368. 44 *See id.* 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 and, in particular, with Section 6(b)(5) of the Act, 45 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. 46 45 15 U.S.C. 78f(b)(5). 46 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). The Commission believes that FCOs may provide investors with additional strategic investment and hedging tools. As such, the Commission believes that the availability of FCOs may provide investors with greater flexibility in meeting their investment objectives. The Commission notes that, while ISE's FCOs differ in some respects from other foreign currency option products, the Commission has recently approved the trading of cash-settled foreign currency options on another national securities exchange. 47 As discussed further below, the Commission believes that ISE's proposed rules adequately address any concerns raised by the listing and trading of FCOs ( *e.g.* , transparency, customer protection, surveillance) and provide for adequate and proper regulation of the listing and trading of FCOs on ISE. 47 *See* Securities Exchange Act Release No. 54989 (December 21, 2006), 71 FR 78506 (December 29, 2006) (SR-PHLX-2006-34); *see also* Phlx Rules 1000-1093. As noted above, ISE's FCOs will be rate-modified, whereas Phlx lists and trades cash-settled foreign currency options that are not rate-modified. A. Dissemination of Information The Commission notes that the underlying value of ISE's proposed FCOs are intended to “look and feel” like index options. To achieve this, ISE will base each FCO on a modified exchange rate ( *i.e.* , ISE will multiply the Reuters Composite Currency Rate by a pre-determined, fixed amount of 1, 10, or 100). 48 The purpose of the modifier is to bring the underlying value of an FCO up to a level that more closely resembles the value an investor would customarily see for an index option. Accordingly, dissemination of the modified exchange rates by ISE is essential to inform investors' trading of FCOs. In this respect, ISE will disseminate current modified exchange rates for each FCO at least once every fifteen seconds over OPRA or one or more major market data vendors for all the currency rates on which it intends to list options. 49 48 *See supra* note 12 and accompanying text (discussing the use of rate modifiers). 49 *See* Proposed ISE Rule 2207. The Exchange will also disseminate FCO quotes and trades over OPRA. With respect to the underlying components that make up an FCO, the Commission notes that an investor can access a list of the modifiers that are used in creating each of the modified exchange rates upon which the FCOs are based by consulting ISE's Web site. Further, the Commission believes that sufficient venues exist for obtaining reliable information on the Currencies so that investors in FCOs can monitor the underlying spot market in the Currencies. These foreign exchange rates are widely available via public Web sites, broker Web sites, as well as in print publications. 50 50 For example, Web sites such as Bloomberg.com, Reuters.com, Yahoo! Finance, CNBC.com, OANDA.com, and Nasdaq.com provide free currency data. In addition, Investors Business Daily, Wall Street Journal, and the New York Times all provide currency data as part of their daily coverage. The Commission also notes that investors can readily obtain information regarding futures trading on the Currencies, as the Exchange proposes to trade FCOs only on those Currencies whose futures contracts, and options on such futures contracts, are currently traded on the CME. B. Settlement Value An FCO's closing settlement value will be the Noon Buying Rate or the WM/Reuters Closing Spot rate, as applicable, 51 on the trading day prior to expiration, 52 as modified by the applicable modifier. Settlement values will be posted on the Exchange's Web site, and will be publicly available to all visitors to the ISE's Web site. The Commission believes that the Exchange's procedures and the competitive nature of the spot market for the Currencies should help to ensure that the settlement values for FCO contracts will accurately reflect the spot price for foreign currencies. 51 *See* Proposed ISE Rule 2212. As noted above, in the event that the Federal Reserve Bank of New York does not maintain or publish a Noon Buying Rate for an underlying Currency, the Exchange will apply the WM/Reuters Closing Spot rate to determine the closing settlement value for a particular FCO. 52 If the Noon Buying Rate is not announced by 2 p.m. Eastern Time, the closing settlement value would be the most recently announced Noon Buying Rate, as modified by the applicable modifier, unless the Exchange determines to apply an alternative closing settlement value as a result of extraordinary circumstances. The WM/Reuters Closing Spot rate would be one of the alternative closing settlement values available to ISE for use in such a situation. C. Customer Protection The Commission believes that a regulatory system designed to protect public customers must be in place before the trading of sophisticated financial instruments, such as ISE's proposed FCOs, can commence trading on a national securities exchange. The Commission believes that this goal has been satisfied by the application of ISE's existing customer protection rules to FCOs. 53 As noted above, the Exchange's customer protection rules regarding customer suitability, discretionary accounts, supervision of accounts, confirmation to customers, and delivery of the ODD, among others, will extend to the trading of FCOs. The Commission also notes that the ODD is being amended to include characteristics and trading examples of the Exchange's FCOs and that the Exchange plans to deliver a circular to its members describing the specific risks associated with FCOs. Accordingly, the Commission believes that ISE has provided adequate safeguards to help ensure the protection of investors in FCOs. 53 *See supra* Section II.D (Customer Protection and Surveillance). D. Surveillance The Commission notes that ISE will integrate FCOs into its existing market surveillance program and that it intends to apply the same program procedures to FCOs that it applies to the Exchange's index options. Further, ISE will have the ability to obtain trading information via the ISG from other exchanges who are members or affiliates of the ISG. 54 In addition, the major futures exchanges are affiliate members of the ISG, which will allow ISE to obtain surveillance information regarding potential intermarket trading abuses from futures exchanges (such as the CME). Therefore, the Commission believes that ISE should have the tools necessary to allow it to adequately surveil trading in FCOs. 54 The members of the ISG include all of the U.S. registered stock and options markets. E. Position and Exercise Limits and Margin Requirements The Commission believes that the position and exercise limits proposed by the Exchange for FCOs are reasonably designed to protect the options and related markets from disruptions or manipulation. 55 At the same time, the Commission believes that such position and exercise limits should not hamper the depth and liquidity of the market for FCOs. The Commission also notes that the margin requirements that ISE proposes to adopt for FCOs are substantially similar to Phlx's margin requirements for foreign currency options, which has been approved by the Commission. 56 Accordingly, the Commission believes that the proposed position and exercise limits and margin requirements are appropriate and consistent with the Act. 55 *See* Proposed ISE Rules 2208 and 2209. 56 *See supra* notes 40 and 41 and accompanying text (discussing the proposed margin requirements). F. Market Maker Trading Licenses The Commission believes that the provisions governing the two new classes of market makers that will be permitted to trade FCOs on the Exchange, FXPMMs and FXCMMs, are consistent with the Act. The Commission notes that FXPMMs and FXCMMs will be bound by similar obligations as the PMMs and CMMs of the Exchange's equity markets. 57 In addition, the Commission notes that, in order to obtain a trading license, FXPMMs will be required provide the Exchange with market quality commitments along with a bid. 58 If an FXPMM continuously fails to meet its stated market quality comments, it will have its trading license terminated by the Exchange. 59 57 *See* Notice, *supra* note 5. 58 *See* Proposed ISE Rule 2213(f)(2). 59 *See* Proposed ISE rule 2213(f)(4). The Commission believes that the procedures under which the Exchange proposes to offer market maker trading licenses are reasonably calculated to provide fair access to the Exchange. Specifically, the Commission believes that the provisions governing the Dutch auction, by which FXCMM trading licenses will be sold, are designed to ensure that market maker trading licenses are widely available. 60 For example, the proposed rule permits the Exchange to increase the number of FXCMM trading licenses available at the next regularly scheduled auction based on market demand; specifies a reasonable minimum Reserve Price; limits the number of market maker trading licenses that may be bid by a single Member; and gives the Exchange the ability to sell additional unsold market maker trading licenses during the year at a 10% premium. 61 In addition, the Commission believes that the proposed sealed bid auction for FXPMM trading licenses is reasonably calculated to award trading licenses in a fair and reasonable manner and provide fair access to the Exchange. 62 The requirement that bidders provide a quality market commitment in addition to their bid will allow the Exchange to grant FXPMM trading licenses in an objective manner without awarding a trading license solely based on the highest bid. 60 *See* Proposed ISE Rule 2213(g). 61 *Id.* 62 *See* Proposal ISE Rule 2213(f). G. Other Rules The Commission believes that the other rule changes proposed by ISE to accommodate the trading of FCOs also are consistent with the Act. Further, the Commission notes that the Exchange has represented that it has the necessary systems capacity to support the additional quotations and messages that will result from listing and trading of FCOs. 63 63 *See* Letter from Michael Simon, General Counsel, ISE, to John Roeser, Assistant Director, Commission, dated February 23, 2007. In particular, the Commission believes that it is reasonable and consistent with the Act for the Exchange to apply its current minimum trading increment requirements to FCOs, so that the minimum trading increment for an FCO trading at less than $3.00 will be $0.05 and the minimum trading increment for an FCO trading at $3.00 or higher will be $0.10. 64 In addition, the Commission believes that it is reasonable for the Exchange to list exercise prices of series at intervals no less than $0.10. 65 Further, the Exchange believes that it appropriate for the Exchange to list FCOs with expirations that are the same as the expirations currently permitted for index options, with the exception that FCO long-term series will only have expirations up to 36 months. 66 64 *See* ISE Rule 710. 65 *See* Proposed ISE Rule 2206(a)(4). 66 *See* Proposed ISE Rule 2205. The Commission also notes that, consistent with the Act, the proposed rules provide that the Exchange will have the ability to withdraw approval of the trading of a FCO if advisable in the public interest or for the protection of investors, 67 and an Exchange official will have the authority to halt or suspend trading in an FCO under certain circumstances in the interest of a fair and orderly market. 68 67 *See* Proposed ISE Rule 2204. 68 *See* Proposed ISE Rule 2210. H. Accelerated Approval The Commission finds good cause for approving the proposed rule change, as amended, prior to the thirtieth day after publishing notice of Amendment No. 2 in the **Federal Register** . The Commission notes that the proposal, as modified by Amendment No. 1, was published for notice and comment, 69 and that the Commission received no comment letters on the proposal. Amendment No. 2 proposes to amend the proposed rules to specify the 47 cross-rate FCOs that ISE proposes to list and trade, as well as specify the position and exercise limits and the applicable rate modifiers for each proposed cross-rate FCO. The Commission notes that the Exchange expressed its intention to list cross-rate FCOs in its Exhibit 3 to the original proposed rule change, and that Amendment No. 2 provided the additional clarification necessary to allow the Exchange to do so. The Commission also notes that the proposed cross-rate FCOs are based on the same Currencies set forth in the original proposal, as modified by Amendment No. 1 and published in the **Federal Register** , and they are subject to the same rules and requirements as other FCOs. As such, the Commission believes that Amendment No. 2 does not raise any new or novel issues. Accordingly, the Commission finds good cause, consistent with Section 19(b)(2) of the Act, 70 to approve the proposal, as modified by Amendment Nos. 1 and 2, on an accelerated basis. 69 *See* Notice, *supra* note 5. 70 15 U.S.C. 78s(b)(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-ISE-2006-59 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-ISE-2006-59. 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 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-ISE-2006-59 and should be submitted on or before May 1, 2007. V. Conclusion *It is therefore ordered,* pursuant to Section 19(b)(2) of the Act, 71 that the proposed rule change (SR-ISE-2006-59), as modified by Amendment Nos. 1 and 2, be, and hereby is, approved on an accelerated basis. 71 15 U.S.C. 78s(b)(2). For the Commission, by the Division of Market Regulation, pursuant to delegated authority. 72 72 17 CFR 200.30-3(a)(12). Florence E. Harmon, Deputy Secretary. [FR Doc. E7-6655 Filed 4-9-07; 8:45 am] BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-55571; File No. SR-ISE-2007-21] Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Fee Changes April 3, 2007. 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 March 26, 2007, the International Securities Exchange, LLC (“ISE” 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 substantially prepared by the ISE. The ISE has designated this proposal as one establishing or changing a due, fee, or other charge applicable only to a member under Section 19(b)(3)(A)(ii) of the Act, 3 and Rule 19b-4(f)(2) thereunder, 4 which renders the proposal effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b-4. 3 15 U.S.C. 78s(b)(3)(A)(ii). 4 17 CFR 240.19b-4(f)(2). I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The ISE is proposing to amend its Schedule of Fees to establish fees for transactions in options on seven Premium Products. 5 The text of the proposed rule change is available on the ISE's Web site ( * http:// www.iseoptions.com/legal/proposed_rule_changes.asp * ), at the ISE, and at the Commission's Public Reference Room. 5 “Premium Products” is defined in the Schedule of Fees as the products enumerated therein. 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 ISE 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 ISE 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 is proposing to amend its Schedule of Fees to establish fees for transactions in options on the following seven Premium Products: iShares Dow Jones U.S. Basic Materials Sector Index Fund (“IYM”), 6 iShares MSCI Germany Index Fund (“EWG”), iShares MSCI Australia Index Fund (“EWA”), iShares S&P 500 Growth Index Fund (“IVW”), iShares S&P 500 Value Index Fund (“IVE”), 7 iShares KLD Select Social Index Fund (“KLD”), and iShares KLD 400 Social Index Fund (“DSI”). 8 6 iShares® is a registered trademark of Barclays Global Investors, N.A. (“BGI”), a wholly owned subsidiary of Barclays Bank PLC. “Dow Jones,” and “Dow Jones U.S. Basic Materials Sector Index Fund” are trademarks and service marks of Dow Jones & Company, Inc. (“Dow Jones”) and have been licensed for use for certain purposes by BGI. All other trademarks and service marks are the property of their respective owners. IYM is not sponsored, endorsed, issued, sold or promoted by Dow Jones. BGI and Dow Jones have not licensed or authorized ISE to:
(i)Engage in the creation, listing, provision of a market for trading, marketing, and promotion of options on IYM; or
(ii)use and refer to any of their trademarks or service marks in connection with the listing, provision of a market for trading, marketing, and promotion of options on IYM or with making disclosures concerning options on IYM under any applicable federal or state laws, rules or regulations. BGI and Dow Jones do not sponsor, endorse, or promote such activity by ISE, and are not affiliated in any manner with ISE. 7 iShares® is a registered trademark BGI, a wholly owned subsidiary of Barclays Bank PLC. “Standard & Poor's®,” “S&P®,” “S&P 500®,” are trademarks of The McGraw-Hill Companies, Inc. (“McGraw-Hill”), and have been licensed for use for certain purposes by BGI. Neither IVW nor IVE are sponsored, sold or endorsed by Standard & Poor's, (“S&P”), a division of McGraw-Hill, and S&P makes no representation regarding the advisability of investing in IVW and IVE. “MSCI Germany Index” and “MSCI Australia Index” are service marks of Morgan Stanley Capital International (“MSCI”) and have been licensed for use for certain purposes by BGI. All other trademarks and service marks are the property of their respective owners. Neither EWG nor EWA are sponsored, endorsed, issued, sold or promoted by MSCI. BGI, S&P and MSCI have not licensed or authorized ISE to:
(i)engage in the creation, listing, provision of a market for trading, marketing, and promotion of options on IVW, IVE, EWG and EWA; or
(ii)use and refer to any of their trademarks or service marks in connection with the listing, provision of a market for trading, marketing, and promotion of options on IVW, IVE, EWG and EWA or with making disclosures concerning options on IVW, IVE, EWG and EWA under any applicable federal or state laws, rules or regulations. BGI, S&P and MSCI do not sponsor, endorse, or promote such activity by ISE, and are not affiliated in any manner with ISE. 8 iShares® is a registered trademark of BGI, a wholly owned subsidiary of Barclays Bank PLC. “KLD Select Social SM Index” and “Domini 400 Social SM Index” are service marks of KLD Research & Analytics, Inc. and have been licensed for use for certain purposes by BGI. All other trademarks and service marks are the property of their respective owners. Neither KLD nor DSI are sponsored, endorsed, issued, sold or promoted by KLD Research & Analytics, Inc. BGI and KLD Research & Analytics, Inc. have not licensed or authorized ISE to:
(i)Engage in the creation, listing, provision of a market for trading, marketing, and promotion of options on KLD and DSI; or
(ii)use and refer to any of their trademarks or service marks in connection with the listing, provision of a market for trading, marketing, and promotion of options on KLD and DSI or with making disclosures concerning options on KLD and DSI under any applicable federal or state laws, rules or regulations. BGI and KLD Research & Analytics, Inc. do not sponsor, endorse, or promote such activity by ISE, and are not affiliated in any manner with ISE. All of the applicable fees covered by this filing are identical to fees charged by the Exchange for all other Premium Products. 9 Specifically, the Exchange is proposing to adopt an execution fee and a comparison fee for all transactions in options on IYM, EWG, EWA, IVW, IVE, KLD and DSI. 10 The amount of the execution fee and comparison fee for products covered by this filing shall be $0.15 and $0.03 per contract, respectively, for all Public Customer Orders 11 and Firm Proprietary orders. The amount of the execution fee and comparison fee for all ISE Market Maker transactions shall be equal to the execution fee and comparison fee currently charged by the Exchange for ISE Market Maker transactions in equity options. 12 Finally, the amount of the execution fee and comparison fee for all non-ISE Market Maker transactions shall be $0.16 and $0.03 per contract, respectively. Further, since options on IYM, EWG, EWA, IVW, IVE, KLD and DSI are multiply-listed, the Payment for Order Flow fee shall also apply. The Exchange believes the proposed rule change will further the Exchange's goal of introducing new products to the marketplace that are competitively priced. 9 The Exchange represents that IYM, EWG, EWA, IVW, IVE, KLD and DSI constitute “Fund Shares,” as defined by ISE Rule 502(h). 10 These fees will be charged only to Exchange members. Under a pilot program that is set to expire on July 31, 2007, these fees will also be charged to Linkage Orders (as defined in ISE Rule 1900). *See* Securities Exchange Act Release No. 54204 (July 25, 2006), 71 FR 43548 (August 1, 2006) (SR-ISE-2006-38). 11 “Public Customer Order” is defined in Exchange Rule 100(a)(39) as an order for the account of a Public Customer. “Public Customer” is defined in Exchange Rule 100(a)(38) as a person that is not a broker or dealer in securities. 12 The execution fee is currently between $0.21 and $0.12 per contract side, depending on the Exchange Average Daily Volume, and the comparison fee is currently $0.03 per contract side. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the objectives of Section 6 of the Act, 13 in general, and furthers the objectives of Section 6(b)(4), 14 in particular, in that it is designed to provide for the equitable allocation of reasonable dues, fees and other charges among its members and other persons using its facilities. 13 15 U.S.C. 78f. 14 15 U.S.C. 78f(b)(4). 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 The Exchange has not solicited, and does not intend to solicit, comments on this proposed rule change. The Exchange has not received any unsolicited written comments from members or other interested parties. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing rule change establishes or changes a due, fee, or other charge imposed by the Exchange, it has become effective pursuant to Section 19(b)(3)(A) of the Act 15 and Rule 19b-4(f)(2) 16 thereunder. At any time within 60 days of the filing of such 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. 15 15 U.S.C. 78s(b)(3)(A). 16 17 CFR 19b-4(f)(2). IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission's Internet comment form ( *http://www.sec.gov/rules/sro.shtml* ); or • Send an e-mail to *rule-comments@sec.gov.* Please include File No. SR-ISE-2007-21 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-ISE-2007-21. 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 ISE. 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-ISE-2007-21 and should be submitted on or before May 1, 2007. 17 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Market Regulation, pursuant to delegated authority. 17 Florence E. Harmon, Deputy Secretary. [FR Doc. E7-6672 Filed 4-9-07; 8:45 am] BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-55576; File No. SR-NASDAQ-2007-026] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify Pricing for Nasdaq Members Using the Nasdaq Market Center April 3, 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 March 22, 2007, The NASDAQ Stock Market LLC (“Nasdaq” 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 substantially prepared by Nasdaq. Nasdaq has designated this proposal as one establishing or changing a due, fee, or other charge under Section 19(b)(3)(A)(ii) of the Act 3 and Rule 19b-4(f)(2) thereunder, 4 which renders the proposed rule change effective immediately upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b-4. 3 15 U.S.C. 78s(b)(3)(A)(ii). 4 17 CFR 240.19b-4(f)(2). I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change Nasdaq proposes to modify the pricing for Nasdaq members using the Nasdaq Market Center. The text of the proposed rule change is available at Nasdaq, on the Exchange's Web site at *http://www.nasdaq.com* , 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, 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 proposes to conform its execution fees and liquidity-provider rebates for transactions in non-Nasdaq-listed securities priced under $1 to the current fees and rebates for Nasdaq-listed securities priced under $1. The execution fees for such transactions will be 0.1% of the total transaction cost, and the liquidity-provider rebate will be zero. 5 Thus, for example, the execution fee for a trade of 100 shares in a stock priced at $0.70 would be $0.07, with no rebate to the liquidity provider. 5 For an order in a non-Nasdaq security through which a member accesses liquidity, this change will result in a fee reduction; for a quote or order through which a member acts as a liquidity provider, this change will eliminate the rebate previously paid to the member. *See* e-mail from John Yetter, Vice President and Deputy General Counsel, Nasdaq, to Sara Gillis, Attorney, Division of Market Regulation, Commission, on April 2, 2007 (“April 2, 2007 E-mail”). Nasdaq is also proposing to modify the routing fee for Nasdaq-listed and non-Nasdaq-listed securities priced under $1 to 0.3% of the total transaction cost. 6 The change reflects the fact that under Rule 610 of Regulation NMS, 7 market centers to which Nasdaq routes may charge Nasdaq only up to 0.3% of the transaction cost for executing routed orders in securities priced under $1. 6 Depending on the price of the transaction and a member's average daily share volume during the month, this change may either constitute a fee increase or a fee reduction for a particular routed order. *See* April 2, 2007 E-mail, *supra* note 5. 7 17 CFR 242.610. Nasdaq recently began trading non-Nasdaq-listed securities priced under $1 in sub-penny increments. As a result, Nasdaq has seen an increase in its share volume in these securities. Nasdaq believes that, as is true for Nasdaq-listed securities, the pricing structure for these securities ensures that market participants do not pay execution or routing fees, or receive rebates, that are disproportionately large when compared with the dollar value of a particular transaction. Nasdaq believes that the changes also ensure that execution fees are in compliance with Rule 610 of Regulation NMS. Separately, Nasdaq has filed a proposal for a retroactive reduction in the fees charged for executions of non-Nasdaq-listed securities priced under $1 for the period from March 5 through March 21, 2007, to ensure that these fees are also in compliance with the requirements of Rule 610. 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 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. Nasdaq believes that this change will ensure that the level of fees and rebates associated with trading securities at prices under $1 is consistent with the value of these securities, the costs of routing orders to other market centers for execution, and the requirements of Rule 610 of Regulation NMS. 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. 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 Because the foregoing rule change establishes or changes a due, fee, or other charge applicable only to a member imposed by Nasdaq, it has become effective pursuant to Section 19(b)(3)(A) of the Act 10 and subparagraph (f)(2) of Rule 19b-4 thereunder. 11 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). 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-2007-026 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-2007-026. 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 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-2007-026 and should be submitted on or before May 1, 2007. For the Commission, by the Division of Market Regulation, pursuant to delegated authority. 12 12 17 CFR 200.30-3(a)(12). Florence E. Harmon, Deputy Secretary. [FR Doc. E7-6674 Filed 4-9-07; 8:45 am] BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-55567; File No. SR-NYSE-2007-35] Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Technical Amendments to the Amended and Restated Certificate of Incorporation of NYSE Euronext April 2, 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 March 29, 2007, New York Stock Exchange LLC (“Exchange” or “NYSE”) 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 substantially by the Exchange. The Exchange 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 make certain technical changes to the amended and restated certificate of incorporation of NYSE Euronext to remove all references to “Year 1 NYSE Shares” and “Year 1 NYSE Group Shares” from the provisions regarding transfer restrictions and to clarify that it is the currently operative certificate of incorporation of NYSE Group, Inc. (and not the certificate of incorporation of NYSE Group, Inc. that will be operative after the closing of the Combination (as defined below)) which contains the definitions of the terms “Year 2 NYSE Share” and “Year 3 NYSE Share.” The text of the proposed rule change is available at the Exchange, *http://www.nyse.com* , and 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 The Exchange, a New York limited liability company, registered national securities exchange, and self-regulatory organization, is submitting this rule filing to the Commission in connection with the proposed business combination (“Combination”) of NYSE Group, Inc., a Delaware corporation (“NYSE Group”), with Euronext N.V., a company organized under the laws of The Netherlands (“Euronext”). As a result of the Combination, the businesses of NYSE Group (including that of the Exchange and NYSE Arca, Inc., a Delaware corporation, registered national securities exchange, and self-regulatory organization) and Euronext will be held under a single, publicly traded holding company named NYSE Euronext, a Delaware corporation (“NYSE Euronext”). Following the Combination, each of NYSE Group and Euronext (or a successor Dutch holding company) will be a separate subsidiary of NYSE Euronext, and their respective businesses and assets will continue to be held as they are currently held (subject to any post-closing reorganization of Euronext). The Commission has approved the Exchange's rule filing in connection with the Combination (“Combination Filing”) 5 and the Combination is scheduled to close on April 4, 2007. 5 Securities Exchange Act Release No. 55293 (February 14, 2007), 72 FR 8033 (February 22, 2007) (SR-NYSE-2006-120). Subsequent to the Combination Filing's approval, the transfer restrictions on the Year 1 NYSE Shares, as defined in the currently operative certificate of incorporation of NYSE Group, expired, causing the references to “NYSE Year 1 Shares” and “NYSE Group Year 1 Shares” in the amended and restated certificate of incorporation of NYSE Euronext to become obsolete and potentially confusing. Additionally, the Exchange wishes to clarify that it is the currently operative certificate of incorporation of NYSE Group (and not the certificate of incorporation of NYSE Group that will be operative after the closing of the Combination) in which the terms “Year 2 NYSE Share” and “Year 3 NYSE Share” are defined. The Exchange is also adding the date on which the amended and restated certificate of incorporation of NYSE Euronext is being filed. The proposed changes do not affect the substance of the amended and restated certificate of incorporation of NYSE Euronext in any way. The Exchange needs the proposed rule change to be effective and operative prior to the consummation of the Combination, as it must file the amended and restated certificate of incorporation of NYSE Euronext with the Delaware Secretary of State before the closing of the Combination, 6 as contemplated by the Combination Filing. 6 The Commission notes that the Exchange included references in the proposed rule change to filing the amended and restated certificate of incorporation of NYSE Euronext with the Delaware Secretary of State and the Secretary of State of New York, before and at the closing of the Combination. The Commission staff clarified with the Exchange that the correct reference should be to filing with the Delaware Secretary of State before the closing of the Combination. Telephone conversation between Janet Kissane, Vice President and Associate General Counsel, NYSE Group, and Kim M. Allen, Special Counsel, Division of Market Regulation, Commission, on March 29, 2007. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the requirement under Section 6(b)(5) 7 of the Act that an exchange have rules that are designed 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. 7 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 written comments on the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change does not:
(A)Significantly affect the protection of investors or the public interest;
(B)impose any significant burden on competition; and
(C)become operative for 30 days after the date of the filing, or such shorter time as the Commission may designate if consistent with the protection of investors and the public interest, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act 8 and Rule 19b-4(f)(6) thereunder. 9 8 15 U.S.C. 78s(b)(3)(A). 9 17 CFR 240.19b-4(f)(6). A proposed rule change filed under Rule 19b-4(f)(6) 10 normally may not become operative prior to 30 days after the date of filing. However, Rule 19b-4(f)(6)(iii) 11 permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has requested that the Commission waive the 30-day operative delay, and designate the proposed rule change immediately operative. 12 The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest. 13 The Exchange has stated that the amended and restated certificate of incorporation of NYSE Euronext as modified by this proposed rule change must be filed with the Delaware Secretary of State before the closing of the Combination that is scheduled for April 4, 2007. The Commission notes that the proposed modifications to the amended and restated certificate of incorporation of NYSE Euronext are technical changes that are non-substantive. Accordingly, the Commission designates that the proposed rule change become operative immediately. 10 *Id.* 11 17 CFR 240.19b-4(f)(6)(iii). 12 The Exchange also asked the Commission to waive the five-business day pre-filing notice requirement. *See* Rule 19b-4(f)(6)(iii), 17 CFR 240.19b-4(f)(6)(iii). The Commission is exercising its authority to designate a shorter time, and notes that the Exchange provided the Commission with written notice of its intention to file the proposed rule change on March 26, 2007. 13 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. 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. 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-NYSE-2007-35 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-2007-35. 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-NYSE-2007-35 and should be submitted on or before May 1, 2007. 14 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Market Regulation, pursuant to delegated authority. 14 Florence E. Harmon, Deputy Secretary. [FR Doc. E7-6669 Filed 4-9-07; 8:45 am] BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-55574; File No. SR-NYSE-2007-36] Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Section 802.01C of the Listed Company Manual, Clarifying That the Exchange Uses the Closing Price Reported on the Consolidated Tape To Determine Compliance With Its Price Test April 3, 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 March 29, 2007, the New York Stock Exchange LLC (“NYSE” or the “Exchange”) filed with the Securities and Exchange Commission (“Commission”) the proposed rule change is described in Items I, II, and III below, which Items have been substantially prepared by the Exchange. The NYSE filed this proposal pursuant to Section 19(b)(3)(A) of the Act 3 and Rule 19b-4(f)(1) thereunder, 4 which renders it 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 5 U.S.C. 78s(b)(3)(A). 4 17 CFR 240.19b-4(f)(1). I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The NYSE proposes to amend Section 802.01C of its Listed Company Manual (the “Manual”) to clarify that, for purposes of determining whether a company is below the $1.00 share price compliance standard, the Exchange uses the closing price reported on the consolidated tape. The text of the proposed rule change is available at the Exchange, on the Exchange's Web site at *http://www.nyse.com* , 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 Statutory Basis for, the Proposed Rule Change 1. Purpose Section 802.01C of the Manual provides that a company will be considered to be below compliance standards if the average closing price of a security is less than $1.00 over a consecutive 30 trading-day period. The Exchange proposes to amend Section 802.01C to clarify that the pricing information that it uses for this purpose is the closing price reported on the consolidated tape. The Exchange states that this is consistent with its longstanding practice in applying this rule. 2. Statutory Basis The basis under the Act for this proposed rule change is the requirement under Section 6(b)(5) of the Act 5 that an exchange have rules that are 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, in general, to protect investors and the public interest. 5 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 Written comments were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing proposed rule change has become effective upon filing pursuant to Section 19(b)(3)(A)(i) of the Act 6 and Rule 19b-4(f)(1) thereunder 7 because it constitutes a stated policy, practice, or interpretation with respect to the meaning, administration, or enforcement of an existing rule. 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. 6 15 U.S.C. 78s(b)(3)(A)(i). 7 17 CFR 19b-4(f)(1). 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-NYSE-2007-36 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-NYSE-2007-36. 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 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-NYSE-2007-36 and should be submitted on or before May 1, 2007. For the Commission, by the Division of Market Regulation, pursuant to delegated authority. 8 8 17 CFR 200.30-3(a)(12). Florence E. Harmon, Deputy Secretary. [FR Doc. E7-6673 Filed 4-9-07; 8:45 am] BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-55577; File No. SR-NYSEArca-2007-32] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to NYSE Arca Marketplace Trading Sessions April 3, 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 March 23, 2007, NYSE Arca, Inc. (“NYSE Arca” or “Exchange”), through its wholly owned subsidiary NYSE Arca Equities, Inc. (“NYSE Arca Equities”), 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 the Exchange. The Exchange filed the proposal pursuant to Section 19(b)(3)(A) of the Act 3 and Rule 19b-4(f)(6) thereunder, 4 which renders the proposed rule change effective upon filing with the Commission. 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, through NYSE Arca Equities, to update the list in NYSE Arca Equities Rule 7.34 of securities eligible to trade in one or more, but not all three, of the Exchange's trading sessions. The Exchange proposes to add to the list shares of certain Funds (“Shares”) that are traded on NYSE Arca, L.L.C. (“NYSE Arca Marketplace”), the equities trading facility of NYSE Arca Equities, pursuant to unlisted trading privileges (“UTP”). The text of the proposed rule change is available on the Exchange's Web site ( *http://www.nysearca.com* ), at the principal office of the Exchange, 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. 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 NYSE Arca Equities Rule 7.34 currently provides, in part, that NYSE Arca Marketplace shall have three trading sessions each day: an Opening Session (1 a.m. Pacific Time (“PT”) to 6:30 a.m. PT), a Core Trading Session (6:30 a.m. PT to 1 p.m. PT) and a Late Trading Session (1 p.m. PT to 5 p.m. PT), and that the Core Trading Session for securities described in NYSE Arca Equities Rules 5.1(b)(13), 5.1(b)(18), 5.2(j)(3), 8.100, 8.200, 8.201, 8.202, 8.203, 8.300, and 8.400 (each, a “Derivative Securities Product”) shall conclude at 1:15 p.m. PT. 5 5 NYSE Arca Equities Rules 5.1(b)(13), 5.2(j)(3), 8.100, 8.200, 8.201, 8.202, 8.203, 8.300, and 8.400 relate to Unit Investment Trusts, Investment Company Units, Portfolio Depositary Receipts, Trust Issued Receipts, Commodity-Based Trust Shares, Currency Trust Shares, Commodity Index Trust Shares, Partnership Units, and Paired Trust Shares, respectively. *See* Securities Exchange Act Release No. 54997 (December 21, 2006), 71 FR 78501 (December 29, 2006) (SR-NYSEArca-2006-77) (amending NYSE Arca Equities Rule 7.34). NYSE Arca Equities Rule 7.34 includes a list of those securities which are eligible to trade in one or more, but not all three, of the Exchange's trading sessions. The Exchange maintains on its Internet Web site ( *http://www.nysearca.com* ) a list that identifies all securities traded on the NYSE Arca Marketplace that do not trade for the duration of each of the three sessions specified in NYSE Arca Equities Rule 7.34. The Exchange proposes to add the following securities to these list:
(1)PowerShares DB Agriculture Fund;
(2)PowerShares DB Base Metals Fund;
(3)PowerShares DB Energy Fund;
(4)PowerShares DB Gold Fund;
(5)PowerShares DB Oil Fund;
(6)PowerShares DB Precious Metals Fund;
(7)PowerShares DB Silver Fund;
(8)PowerShares DB U.S. Dollar Index Bearish Fund; and
(9)PowerShares DB U.S. Dollar Index Bullish Fund. 6 These securities, which are Trust Issued Receipts as described in NYSE Arca Equities Rule 8.200 Commentary .02, are traded on the NYSE Arca Marketplace pursuant to UTP. 6 The Commission has approved the trading of Shares of the PowerShares DB Agriculture Fund, PowerShares DB Base Metals Fund, PowerShares DB Energy Fund, PowerShares DB Gold Fund, PowerShares DB Oil Fund, PowerShares DB Precious Metals Fund, and PowerShares DB Silver Fund on the NYSE Arca Marketplace pursuant to UTP. *See* Securities Exchange Act Release No. 55453 (March 13, 2007), 72 FR 13333 (March 21, 2007) (SR-NYSEArca-2006-62). The Commission has approved the trading of Shares of the PowerShares DB U.S. Dollar Index Bearish Fund and PowerShares DB U.S. Dollar Index Bullish Fund on the NYSE Arca Marketplace pursuant to UTP. *See* Securities Exchange Act Release No. 55484 (March 16, 2007), 72 FR 13847 (March 23, 2007) (SR-NYSEArca-2006-67). The Exchange proposes to delete the iShares® FTSE/Xinhua China 25 Index Fund from the lists since these securities are eligible to trade in all three of the Exchange's trading sessions. 7 These securities, which are Investment Company Units described in NYSE Arca Equities Rule 5.2(j)(3), are traded on the NYSE Arca Marketplace pursuant to UTP. 7 The Commission has approved trading of these securities on the NYSE Arca Marketplace pursuant to UTP. *See* Securities Exchange Act Release No. 50799 (December 6, 2004), 69 FR 72242 (December 13, 2004) (SR-PCX-2004-99). The Exchange proposes to change the trading sessions of iShares® COMEX Gold Trust trading session to accurately reflect that they are traded in the core trading session only. 8 The securities, which are Commodity-Based Trust Shares as described in NYSE Arca Equities Rule 8.201, are traded on the Exchange pursuant to UTP. 8 The Commission has approved the trading of these securities on the NYSE Arca Marketplace pursuant to UTP. *See* Securities Exchange Act Release No. 51067 (January 21, 2005), 70 FR 3952 (January 27, 2005) (SR-PCX-2004-132). 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), 10 in particular, in that it is designed to facilitate transactions in securities, to promote just and equitable principles of trade, to enhance competition, and 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 The Exchange has 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 Because the foregoing proposed rule change does not:
(i)Significantly affect the protection of investors or the public interest;
(ii)Impose any significant burden on competition; and
(iii)Become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, if consistent with the protection of investors and the public interest, it has become effective pursuant to Section 19(b)(3)(A) of the Act 11 and Rule 19b-4(f)(6) thereunder. 12 11 15 U.S.C. 78s(b)(3)(A). 12 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) requires an exchange to give the Commission written notice of its intent to file the proposed rule change, along with a brief description and text of the proposed rule change, at least five days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. The Commission has determined to waive the five-day pre-filing notice requirement in this case. The Exchange has asked the Commission to waive the 30-day operative delay. The Commission believes that such waiver is consistent with the protection of investors and the public interest because the proposed rule change should provide transparency and more clarity with respect to the trading hours eligibility of certain derivative securities products and should promote consistency in the trading halts of derivative securities. The Commission notes that this filing does not change the trading hours of the Derivative Securities Products listed in NYSE Arca Equities Rule 7.34, but codifies trading hour sessions that have been established through other rule changes or through the use of the Exchange's generic listing standards pursuant to Rule 19b-4(e) under the Act. For these reasons, the Commission designates the proposed rule change as operative immediately. 13 13 For purposes only of waiving the operative date of this proposal, the Commission has considered the 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. 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 e-mail to *rule-comments@sec.gov.* Please include File Number SR-NYSEArca-2007-32 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-2007-32. This file number should be included on the subject line if e-mail is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site ( *http://www.sec.gov/rules/sro/shtml* ). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for inspection and copying in the Commission's Public Reference Room. Copies of such filing will also be available for inspection and copying at the principal office of the 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-2007-32 and should be submitted by or before May 1, 2007. For the Commission, by the Division of Market Regulation, pursuant to delegated authority. 14 14 17 CFR 200.30-3(a)(12). Florence E. Harmon, Deputy Secretary. [FR Doc. E7-6675 Filed 4-9-07; 8:45 am] BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-55578; File No. SR-NYSEArca-2007-29] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to NYSE Arca Rule 7.20 and 7.31 April 4, 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 March 20, 2007, 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 substantially prepared by the Exchange. The Exchange filed the proposed rule change pursuant to Section 19(b)(3)(A) of the Act 3 and Rule 19b-4(f)(6) thereunder, which renders it effective upon filing with the Commission. 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 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 NYSE Arca, through its wholly owned subsidiary, NYSE Arca Equities, Inc. (“NYSE Arca Equities”), is proposing to amend its rules governing NYSE Arca, LLC (“NYSE Arca Marketplace”), the equities trading facility of NYSE Arca Equities. With this filing, the Exchange proposes to clarify:
(1)That Equity Trading Permit (“ETP”) Holders who are not registered Market Makers 5 are prohibited from entering Q Orders pursuant to NYSE Arca Equities Rule 7.20(a), and
(2)when Q Orders will automatically repost pursuant to NYSE Arca Equities Rule 7.31( *l* ). The text of the proposed rule change is available at the Exchange, the Commission's Public Reference Room, and *http://www.nyse.com.* 5 *See* NYSE Arca Rule 1.1(u). 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 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 Pursuant to NYSE Arca Equities Rule 7.23(a)(1) (Obligations of Market Makers), Market Makers are required to maintain continuous, two-sided Q Orders in those securities in which the Market Maker is registered to trade. NYSE Arca Equities Rule 7.31(k)(1)(A) provides that a Market Maker may instruct the NYSE Arca Marketplace before 6:28 a.m. (Pacific Time) to enter a Q Order on its behalf at price levels set forth in Rule 7.31(k)(1)(A). 6 Furthermore, Rule 7.31(k) provides that upon execution, the Q Order entered pursuant to the Market Maker's instructions will automatically repost with the original size at $10 below the original bid or $10 above the original offer, but never below $0.01. 6 These price levels are:
(1)At the last price and size entered by the Market Maker during the previous trading day, either including or excluding reserve size;
(2)at a specified percentage from the best bid or offer; or
(3)at the standard Q defined as $0.01 bid and 2 times the previous day's close for the offer with specified display and reserve sizes. The amendment to Rule 7.31 reflected in this rule filing is consistent with the intent of the rule and how the system currently operates. Specifically, such automatic reposting will not occur if the Market Maker initially enters the Q Order without a reserve size, or if the Market Maker initially enters the Q Order with a reserve size and such reserve size is exhausted. The proposed amendment clarifies that under such circumstances, a Market Maker will be responsible for reposting a new Q Order in the security in order to remain in compliance with its continuous Q Order obligation pursuant to Rule 7.23(a)(1). In addition, due to the broad definition of “Q Order” in Rule 7.31(k)(1), ETP Holders, who are not registered Market Makers, have been improperly acting as Market Makers by entering Q Orders on the NYSE Arca Marketplace. In order to prevent this practice, the Corporation is clarifying the language in NYSE Arca Equities Rule 7.20(a) to prohibit specifically ETP Holders not registered as Market Makers from acting as Market Markers ( *i.e.,* submitting Q Orders) and make Rule 7.20(a) more consistent with the proposed changes to Rule 7.31(k)(l). 2. Statutory Basis The proposed rule change is consistent with Section 6(b) 7 of the Act, in general, and furthers the objectives of Section 6(b)(5) 8 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 mechanism of a free and open market and a national market system. 7 15 U.S.C. 78f(b). 8 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 written comments on the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change does not:
(i)Significantly affect the protection of investors or the public interest;
(ii)impose any significant burden on competition; and
(iii)become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A) 9 and Rule 19b-4(f)(6) thereunder. 10 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. 9 15 U.S.C. 78s(b)(3)(A). 10 17 CFR 240.19b-4(f)(6). NYSE Arca has asked the Commission to waive the five-day pre-filing notice requirement and the 30-day operative delay. The Commission believes such waivers are consistent with the protection of investors and the public interest because they would permit the Exchange to codify the proposed clarifications without further delay. 11 For this reason, the Commission designates the proposal to be operative upon filing with the Commission. 11 For purposes only of waiving the 30-day pre-operative period, the Commission has considered the proposed rule's impact on efficiency, competition and capital formation. 15 U.S.C. 78c(f). 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 e-mail to *rule-comments@sec.gov.* Please include File Number SR-NYSEArca-2007-29 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-2007-29. This file number should be included on the subject line if e-mail is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site ( *http://www.sec.gov/rules/sro/shtml* ). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for inspection and copying in the Commission's Public Reference Room. Copies of such filing will also be available for inspection and copying at the principal office of the 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-2007-29 and should be submitted on or before May 1, 2007. For the Commission, by the Division of Market Regulation, pursuant to delegated authority. 12 12 17 CFR 200.30-3(a)(12). Florence E. Harmon, Deputy Secretary. [FR Doc. E7-6710 Filed 4-9-07; 8:45 am] BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-55579; File No. SR-OCC-2007-02] Self-Regulatory Organizations; The Options Clearing Corporation; Notice of Filing and Order Granting Accelerated Approval of a Proposed Rule Change Relating to Rate-Modified Foreign Currency Options April 4, 2007. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”), 1 notice is hereby given that on March 5, 2007, The Options Clearing Corporation (“OCC”) 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 primarily by OCC. The Commission is publishing this notice and order to solicit comments on the proposed rule change from interested persons and to grant accelerated approval of the proposal. 1 15 U.S.C. 78s(b)(1). I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The proposed rule change will allow OCC to clear and settle rate-modified foreign currency options (“Rate-Modified FCOs”) which have been proposed and approved for trading by the International Securities Exchange (“ISE”). 2 2 Securities Exchange Act Release No. 55575 (April 3, 2007) (File No. SR-ISE-2006-59). For notice of the proposal, see Securities Exchange Act Release No. 55336 (February 23, 2007), 72 FR 9364 (March 1, 2007). II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, OCC 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. OCC has prepared summaries, set forth in sections (A), (B), and
(C)below, of the most significant aspects of such statements. 3 3 The Commission has modified parts of these statements.
(A)Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change The purpose of this rule change is to accommodate a request from ISE that OCC clear and settle Rate-Modified FCOs. OCC's By-Laws and Rules currently provide for the clearance and settlement of cash-settled foreign currency options (“Cash-Settled FCOs”). 4 However, unlike the Cash-Settled FCOs currently covered by OCC's By-Laws and Rules, the underlying interest for Rate-Modified FCOs is stated in terms of the exchange rate between a “currency pair,” one of which may be the U.S. dollar or both of which may be non-U.S. currencies, as modified by a “rate modifier” determined by ISE. 4 The Commission recently approved a proposed rule change filed by OCC to accommodate Cash-Settled FCOs traded on the Philadelphia Stock Exchange (“Phlx”). Securities Exchange Act Release No. 54935 (December 13, 2006), 71 FR 76417 (December 20, 2006) (File No. SR-OCC-2006-10). The rule changes that were made with respect to the Phlx Cash-Settled FCOs will also apply to Rate-Modified FCOs. The rate modifier for Rate-Modified FCOs is selected so that the underlying modified rate looks similar to an index. The exchange rates underlying Rate-Modified FCOs may or may not be stated in the same way that they are conventionally quoted in the spot market. For example, exchange rates between the U.S. dollar and the euro are generally quoted as dollars per euro on the spot market, but the rate modifying a Rate-Modified FCO could be stated as euros per dollar. The number by which the exchange rate is multiplied to determine the modified rate for a particular class of options will be 1, 10 or 100 depending on the level of the exchange rate in question. For purposes of determining an exercise settlement amount, Rate-Modified FCOs would use a multiplier of $100 ( *i.e.* , the exercise settlement amount will be the difference between the strike price and the exercise settlement value of the underlying modified rate times the multiplier). The multiplier, which always has a value of $100, is not the same thing as the rate modifier. Similarly, premium quotations would be multiplied by $100 to obtain the aggregate premium amount for a single option. The exercise settlement amount for Rate-Modified FCOs will be based on the noon buying rates for the underlying currencies as published by the Federal Reserve Bank of New York. If the Federal Reserve Bank does not publish a noon buying rate for a particular currency pair, ISE will use a rate obtained by a market data vendor. OCC will ordinarily look to ISE to supply the final value of the underlying for exercise settlement purposes, but OCC will retain its customary authority to set a value if none is available from ISE. Trading of Rate-Modified FCOs will ordinarily cease at 12:00 noon Eastern Time on the business day before the expiration date. Rate-Modified FCOs are to be European style and will expire on the Saturday following the third Friday of the expiration month. Rate-Modified FCOs will have up to three near-term expiration months followed by three calendar quarter-end expiration months. To accommodate Rate-Modified FCOs, OCC is proposing to add or modify certain defined terms in Article XXII of the By-Laws. Definitions of “multiplier,” “rate-modified foreign currency options,” “underlying currency pair,” and “underlying modified rate” will be added, and the definitions of “call,” “exercise price,” “exercise settlement amount,” “premium,” “put,” “reporting authority,” “series of options” and “spot price” will be amended to reflect the use of a modified exchange rate as the underlying interest for Rate-Modified FCOs. In addition, Section 5 of Article XXII of the By-Laws relating to the time for determination of the spot price will be amended for clarification. OCC will delete the definition of “aggregate exercise price,” which is no longer used in OCC's By-Laws or Rules with respect to Cash-Settled FCOs. The introduction to Chapter XXIII of the Rules will be amended to make a non-substantive change to conform to the terminology in Article XXII of the By-Laws. The proposed rule change is consistent with Section 17A of the Act because it is designed to promote the prompt and accurate clearance and settlement of transactions in Rate-Modified FCOs by applying the same basic rules and procedures to such options as are applied to other cash-settled foreign currency options. The proposed rule change is not inconsistent with the existing rules of OCC, including those rules proposed to be amended.
(B)Self-Regulatory Organization's Statement on Burden on Competition OCC does not believe that the proposed rule change would impose any burden on competition.
(C)Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others Written comments were not and are not intended to be solicited with respect to the proposed rule change, and none have been received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Section 17A(b)(3)(F) of the Act requires, among other things, that the rules of a clearing agency be designed to promote the prompt and accurate clearance and settlement of securities transactions. 5 The purpose of the proposed rule change is to amend OCC's By-Laws and Rules so that OCC may clear and settle the new Rate-Modified FCO product to be listed and traded on ISE. Accordingly, the proposed rule change should promote the prompt and accurate clearance and settlement of securities transactions. 5 15 U.S.C. 78q-1(b)(3)(F). OCC has requested that the Commission approve the proposed rule prior to the thirtieth day after publication of the notice of the filing. The Commission finds good cause for approving the proposed rule change prior to the thirtieth day after the publication of notice because such approval will allow ISE to commence trading of Rate-Modified FCOs without any unnecessary delay. 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-OCC-2007-02 on the subject line. Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-OCC-2007-02. This file number should be included on the subject line if e-mail is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site ( *http://www.sec.gov/rules/sro.shtml* ). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for inspection and copying in the Commission's Public Reference Section, 100 F Street, NE., Washington, DC 20549. Copies of such filing also will be available for inspection and copying at the principal office of OCC and on OCC's Web site at *http://www.optionsclearing.com.* 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-OCC-2007-02 and should be submitted on or before May 1, 2007. V. Conclusion On the basis of the foregoing, the Commission finds that the proposed rule change is consistent with the requirements of the Act and in particular Section 17A of the Act and the rules and regulations thereunder. 6 6 In approving the proposed rule change, the Commission considered the proposal's impact on efficiency, competition and capital formation. 15 U.S.C. 78c(f). It is therefore ordered, pursuant to Section 19(b)(2) of the Act, that the proposed rule change (File No. SR-OCC-2007-02) be and hereby is approved. For the Commission by the Division of Market Regulation, pursuant to delegated authority. 7 7 17 CFR 200.30-3(a)(12). Florence E. Harmon, Deputy Secretary. [FR Doc. E7-6668 Filed 4-9-07; 8:45 am] BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-55582; File No. SR-ODD-2007-01] Self-Regulatory Organizations; The Options Clearing Corporation; Order Granting Approval of Accelerated Delivery of Supplement to the Options Disclosure Document Reflecting Certain Changes to Disclosure Regarding Rate-Modified Cash-Settled Foreign Currency Options April 4, 2007. On March 13, 2007, The Options Clearing Corporation (“OCC”) submitted to the Securities and Exchange Commission (“Commission”), pursuant to Rule 9b-1 under the Securities Exchange Act of 1934 (“Act”), 1 five preliminary copies of a supplement to its options disclosure document (“ODD”) reflecting certain changes to disclosure regarding rate-modified cash-settled foreign currency options (“Rate-Modified FCOs”). 2 On April 3, 2007, the OCC submitted to the Commission five definitive copies of the supplement. 3 1 17 CFR 240.9b-1. 2 *See* letter from Jean M. Cawley, First Vice President and Deputy General Counsel, OCC, to Sharon Lawson, Senior Special Counsel, Division of Market Regulation (“Division”), Commission, dated March 5, 2007. 3 *See* letter from Jean M. Cawley, First Vice President and Deputy General Counsel, OCC, to Sharon Lawson, Senior Special Counsel, Division, Commission, dated April 3, 2007. The ODD currently provides general disclosures on the characteristics and risks of trading standardize options. Recently, an options exchange amended its rules to permit the listing and trading of Rate-Modified FCOs. 4 The proposed supplement, which supersedes and replaces the January 2007 Supplement to the ODD, 5 provides disclosure on the characteristics of non-rate modified cash-settled foreign currency options (“Non-Rate Modified FCOs”) and adds new disclosure on the characteristics of Rate-Modified FCOs. 4 *See* Securities Exchange Act Release No. 55575 (April 3, 2007) (approving File No. SR-ISE-2006-59). 5 *See* Securities Exchange Act Release No. 55035 (December 29, 2006), 72 FR 1358 (January 11, 2007) (SR-ODD-2006-01) (“January 2007 Supplement”). In addition to providing new disclosure on the characteristics of Rate-Modified FCOs, the proposed supplement to the ODD also reorganizes the January 2007 Supplement to distinguish disclosures regarding Non-Rate Modified FCOs from Rate-Modified FCOs, as well as providing a separate heading for certain disclosures pertaining to all dollar-denominated cash-settled foreign currency options. Further, the proposed supplement adds new clarification regarding exercise settlement values of Rate-Modified FCOs. The proposed supplement is intended to be read in conjunction with the more general ODD, which, as described above, discusses the characteristics and risks of options generally. 6 6 The Commission notes that the options markets must continue to ensure that the ODD is in compliance with the requirements of Rule 9b-1(b)(2)(i) under the Act, 17 CFR 240.9b-1(b)(2)(i), including when future changes are made regarding Non-Rate Modified FCOs and Rate-Modified FCOs. Any future changes to the rules of the options markets would need to be submitted to the Commission under Section 19(b) of the Act. 15 U.S.C. 78s(b). Rule 9b-1(b)(2)(i) under the Act 7 provides that an options market must file five copies of an amendment or supplement to the ODD with the Commission at least 30 days prior to the date definitive copies are furnished to customers, unless the Commission determines otherwise, having due regard to the adequacy of information disclosed and the public interest and protection of investors. 8 In addition, five copies of the definitive ODD, as amended or supplemented, must be filed with the Commission not later than the date the amendment or supplement, or the amended options disclosure document, is furnished to customers. The Commission has reviewed the proposed supplement and finds, having due regard to the adequacy of information disclosed and the public interest and protection of investors, that the proposed supplement may be furnished to customers as of the date of this order. 7 17 CFR 240.9b-1(b)(2)(i). 8 This provision permits the Commission to shorten or lengthen the period of time which must elapse before definitive copies may be furnished to customers. It is therefore ordered, pursuant to Rule 9b-1 under the Act, 9 that definitive copies of the proposed supplement to the ODD (SR-ODD-2007-01), reflecting disclosure regarding Non-Rate Modified FCOs and adding disclosure regarding Rate-Modified FCOs, may be furnished to customers as of the date of this order. 9 17 CFR 240.9b-1. For the Commission, by the Division of Market Regulation, pursuant to delegated authority. 10 10 17 CFR 200.30-3(a)(39). Florence E. Harmon, Deputy Secretary. [FR Doc. E7-6709 Filed 4-9-07; 8:45 am] BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-55569; File No. SR-Phlx-2007-031] Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Remove References to Intermarket Trading System (“ITS”) Plan April 2, 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 March 27, 2007, the Philadelphia Stock Exchange, Inc. (“Phlx” 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 substantially by the Exchange. 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b-4. I. Self-Regulatory Organization's Statement of the Terms of the Substance of the Proposed Rule Change The Exchange is proposing to amend Phlx Rules 452 and 607 and the XLE Fee Schedule to remove references to the Intermarket Trading System (“ITS”) Plan and to delete Phlx Rules 2000-2002, which implemented the ITS Plan trading rules on the Exchange. The text of the proposed rule change is available at Phlx, the Commission's Public Reference Room and *http://www.phlx.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, 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 Phlx 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 purpose of the proposed rule change is to conform the Exchange's rules to the recent elimination of the ITS Plan. 3 Phlx Rules 2000-2002 were adopted to implement the ITS Plan on the Exchange. Those rules contain the trade-through and locked/crossed market rules that governed trading in certain securities pursuant to the ITS Plan. Those rules are now obsolete with the elimination of the ITS Plan. Trade-through and locked/crossed market rules are now mandated by Regulation NMS 4 and codified in Phlx Rules 185 and 186. In addition, references to the ITS Plan are being removed from Phlx Rules 452 and 607 and the XLE Fee Schedule. 3 *See* Securities Exchange Act Release No. 55397 (March 5, 2007), 72 FR 11066 (March 12, 2007)(File No. 4-208). 4 17 CFR 242.610-611. 2. Statutory Basis The proposed rule change is consistent with Section 6(b) of the Act, 5 in general, and furthers the objectives of Section 6(b)(5) of the Act, 6 in particular, in that it is 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. 5 15 U.S.C. 78f(b). 6 15 U.S.C. 78f(b)(5). B. Self-Regulatory Organization's Statement on Burden on Competition The Phlx 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. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change does not:
(i)Significantly affect the protection of investors or the public interest;
(ii)impose any significant burden on competition; and
(iii)become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, if consistent with the protection of investors and the public interest, it has become effective pursuant to Section 19(b)(3)(A) of the Act 7 and Rule 19b-4(f)(6) thereunder. 8 As required under Rule 19b-4(f)(6)(iii) under the Act, 9 the Exchange provided the Commission with written notice of its intent to file the proposed rule change, along with a brief description and text of the proposed rule change, at least five business days prior to the date of the filing of the proposed rule change. 7 15 U.S.C. 78s(b)(3)(A). 8 17 CFR 240.19b-4(f)(6). 9 17 CFR 240.19b-4(f)(6)(iii). A proposed rule change filed under 19b-4(f)(6) normally may not become operative prior to 30 days after the date of filing. 10 However, Rule 19b-4(f)(6)(iii) 11 permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. The Phlx has requested that the Commission waive the 30-day operative delay and render the proposed rule change operative immediately. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest. The Commission has eliminated the ITS Plan, which makes the various Phlx rules that refer to and implement the trading rules of the ITS Plan obsolete. For the reasons stated above, the Commission therefore designates the proposal to become operative upon filing with the Commission. 12 10 *Id.* 11 *Id.* 12 For purposes of waiving the operative date of this proposal only, the Commission has considered the impact of the proposed rule on efficiency, competition, and capital formation. 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. 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-Phlx-2007-31 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-Phlx-2007-31. 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 Phlx. 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-Phlx-2007-31 and should be submitted on or before May 1, 2007. For the Commission, by the Division of Market Regulation, pursuant to delegated authority. 13 13 17 CFR 200.30-3(a)(12). Florence E. Harmon, Deputy Secretary. [FR Doc. E7-6670 Filed 4-9-07; 8:45 am] BILLING CODE 8010-01-P SMALL BUSINESS ADMINISTRATION Advisory Committee on Veterans Business Affairs; Public Meeting The U.S. Small Business Administration (SBA), pursuant to the Veterans Entrepreneurship and Small Business Development Act of 1999 (Pub. L. 106-50), SBA Advisory Committee on Veterans Business Affairs will host a public federal meeting on Tuesday, April 24, 2007. The meeting will take place at the SBA, 409 3rd Street, SW., Washington, DC 20416, starting at 9 a.m. until 5 p.m. The meeting will be held in the Eisenhower Conference Room, Side B; located on the 2nd floor. The purpose of this meeting is to focus on SBA's services, programs and outreach for veterans and service-disabled veterans. Anyone wishing to attend must contact Cheryl Clark, Program Liaison in the Office of Veterans Business Development at
(202)205-6773 or send an e-mail to *cheryl.clark@sba.gov* . Matthew Teague, Committee Management Officer. [FR Doc. E7-6642 Filed 4-9-07; 8:45 am] BILLING CODE 8025-01-P SOCIAL SECURITY ADMINISTRATION Agency Information Collection Activities: Proposed 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, faxed or e-mailed 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, E-mail address: *OIRA_Submission@omb.eop.gov* . (SSA), Social Security Administration, DCBFM, Attn: Reports Clearance Officer, 1333 Annex Building, 6401 Security Blvd., Baltimore, MD 21235, Fax: 410-965-6400, E-mail address: *OPLM.RCO@ssa.gov* . 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. *Request for Hearing by Administrative Law Judge—20 CFR 404.929, 404.933, 416.1429, 404.1433, 405.722, 418.1350—0960-0269.* The information collected on Form HA-501-U5 is used by SSA to document and initiate the Administrative Law Judge
(ALJ)hearing process for determining eligibility or entitlement to Social Security benefits (Title II), Supplemental Security Income payments (Title XVI), Special Veterans Benefits (Title VIII), Medicare (Title XVIII). This information will also be used to request appeal of initial determinations regarding Medicare Part B income-related premium subsidy reductions. The methods for filing a request for an ALJ hearing are being expanded to include the Internet. If an individual receives a notice of denial of his/her disability claim and the notice provides rights to an ALJ hearing, he/she will have the option of filing for the ALJ hearing over the Internet. The individual will complete the appropriate appeal screens and submit the appeal to SSA for processing. The respondents are individuals requesting an ALJ hearing. *Type of Request:* Revision of an OMB-approved information collection. *Number of Respondents:* 669,469. *Estimated Annual Burden:* 178,525 hours. Collection method Number of respondents Frequency of response Estimated completion time Total burden hours Paper & Modernized Claims System 334,735 1 10 minutes 55,789 i501 334,734 1 22 minutes 122,736 Totals: 669,469 178,525 2. *Request for Reconsideration—20 CFR 404.907-404.921, 416.1407-416.1421, 408.1009—0960-0622.* The information collected on Form SSA-561-U2 is used by SSA to document and initiate the reconsideration process for determining eligibility or entitlement to Social Security benefits (Title II), Supplemental Security Income payments (Title XVI), Special Veterans Benefits (Title VIII), Medicare (Title XVIII). This information will also be used to request appeal of initial determinations regarding Medicare Part B income-related premium subsidy reductions. The methods for filing a request for reconsideration are being expanded to include the Internet. If an individual receives a notice of denial of his/her disability claim and the notice provides the right to reconsideration, he/she will have the option of filing for the reconsideration over the Internet. The individual will complete the appropriate appeal screens and submit the appeal to SSA for processing. The respondents are individuals filing for reconsideration. *Type of Request:* Revision of an OMB-approved information collection. *Number of Respondents:* 1,461,700. *Estimated Annual Burden:* 341,064 hours. Collection method Number of respondents Frequency of response Estimated completion time Total burden hours Paper & Modernized Claims System 730,850 1 8 min 97,447 i561 730,850 1 20 min 243,617 Totals: 1,461,700 341,064 Dated: April 5, 2007. Elizabeth A. Davidson, Reports Clearance Officer, Social Security Administration. [FR Doc. E7-6754 Filed 4-9-07; 8:45 am] BILLING CODE 4191-02-P DEPARTMENT OF TRANSPORTATION Office of the Secretary Urban Partnership-Related Federal Register Notices AGENCY: Office of the Secretary of Transportation (“OST”), DOT. ACTION: Notice of list of urban partnership-related **Federal Register** notices. SUMMARY: The U.S. Department of Transportation (the “Department”) is pleased to provide you the following list of solicitations issued by the Department in connection with its Urban Partnership Program announced in December 2006. FOR FURTHER INFORMATION CONTACT: Please address questions regarding this notice to David B. Horner, Esq., Chief Counsel, Federal Transit Administration, U.S. Department of Transportation by e-mail at *David.Horner@dot.gov.* SUPPLEMENTARY INFORMATION: The following is a list of solicitations issued by the Department in connection with its Urban Partnership Program announced in December 2006. The Urban Partnership Program reflects the Department's effort to develop, in the words of U.S. Transportation Secretary Mary Peters, “21st Century Solutions to 21st Century Challenges” facing the Nation's transportation network. One such challenge is the severe and worsening problem of metropolitan traffic congestion. Through the Urban Partnership Program, the Department is offering a combination of grants, technical expertise, regulatory relief and credit support to jurisdictions which are prepared to experiment with four strategies believed to be effective, on a combined basis, in reducing metropolitan traffic congestion:
(i)Value pricing,
(ii)bus transit,
(iii)telecommuting and flextime, and
(iv)intelligent transportation technology. Representatives of metropolitan areas interested in becoming Urban Partners must submit an application to the Department that meets the requirements detailed in the Department's December 8, 2006, **Federal Register** Notice (“Applications for Urban Partnership Agreements (“UPAs”) as Part of Congestion Initiative”). Designation as an Urban Partner does not, by itself, qualify a party for any grant or funding amount. However, Urban Partners will receive priority consideration under the other departmental discretionary funding programs referenced below, to the extent that program terms provide or allow. Applicants must apply separately to each of the programs from which they seek funding and must meet each program's specific statutory requirements. Applicants are encouraged to identify in each application those other Urban Partnership-related program solicitations, if any, to which they have applied. All application materials are due to the Department by April 30, 2007, apart from applications to the Federal Transit Administration's Alternatives Analysis and Bus & Bus Facilities Programs, which are due by May 22, 2007. Date published Citation Title (description) Link 12/08/2006 71 FR 71231 Applications for Urban Partnership Agreements (“UPAs”) as Part of Congestion Initiative (The purpose of this Notice is to solicit proposals by metropolitan areas to enter into UPAs with the Department in order to demonstrate strategies with a combined track record of effectiveness in reducing traffic congestion.) *http://www.fightgridlocknow.gov/ docs/upafrnotice20061208.pdf.* 12/18/2006 71 FR 77084 Applications for Funding Under Intelligent Transportation Systems Operational Testing to Mitigate Congestion Program (This notice invites State and local governments and other public authorities to apply to participate in a cooperative effort to deploy and evaluate the application of advanced technologies to reduce congestion in an urban area.) *http://www.fightgridlocknow.gov/ docs/itscongestionnotice20061218.pdf.* 12/22/2006 71 FR 77084 Value Pricing Pilot Program Participation, Fiscal Years 2007-2009 (This notice invites State and local governments and other public authorities to apply to participate in the Value Pricing Pilot (“VPP”) program and presents guidelines for program applications.) *http://www.fightgridlocknow.gov/ docs/vpppfrnotice20061222.pdf.* 02/12/2007 72 FR 6663 Notice of Availability of Proposed Guidance on New and Small Starts Policies and Procedures (The purpose of this notice is to solicit comments on the policies and procedures for the New and Small Starts programs. The proposed improvements include the consideration of congestion management/pricing strategies and “make-the-case” documents as “other factors” for project justification. Approximately $266 million in discretionary funding is available for new fixed guideway capital projects, including up to $200 million for corridor-based bus projects, under the New Starts/Small Starts program in fiscal year 2007 (net of earmarks under SAFETEA-LU and recommendations in the President's Fiscal Year 2007 Budget)) *http://a257.g.akamaitech.net/7/257/2422/01jan20071800/edocket.access.gpo.gov/2007/pdf/E7-2249.pdf.* 03/22/2007 72 FR 13552 Solicitation of Applications for Certain Federal-Aid Highway Funding Available in Fiscal Year 2007 under Federal Highway Discretionary Grant Programs (The purpose of this notice is to solicit applications for Federal grant funding and to issue supplemental notice and information to eligible grantees concerning discretionary grant funds available for obligation in Fiscal Year 2007 under eight discretionary grant programs administered by FHWA. It seeks applications to the programs that both meet the programs' respective statutory criteria and emphasize the proposed projects' highway safety and congestion reduction benefits.) This notice applies to the following programs: *http://a257.g.akamaitech.net/7/257/2422/01jan20071800/ edocket.access.gpo.gov/2007/pdf/E7-5161.pdf.* • Ferry Boat Discretionary Program (23 U.S.C. 147); • Innovative Bridge Research and Deployment Program (23 U.S.C. 503(b)); • Interstate Maintenance Discretionary Program (23 U.S.C. 118(c)); • Public Lands Highway Discretionary Program (23 U.S.C. 202-204); • Highways for Life Pilot Program (§ 1502 of Pub. L. 109-59); • Transportation Community and System Preservation Program (§ 1117 of Pub. L. 109-59); • Truck Parking Facilities Pilot Program (§ 1305 Of Pub. L. 109-59); and • Delta Region Transportation Development Program (§ 1308 of Pub. L. 109-59). 03/23/2007 72 FR 13973 Solicitation of Applications for Certain Funding Available in Fiscal Year 2007 Under the Federal Transit Administration's Section 5309 Bus and Bus-Related Facilities Discretionary Grant Program To Support Urban Partnerships (This notice solicits applications for a significant portion of funds not “earmarked” by law and otherwise available in Fiscal Year 2007 under the Section 5309 Bus and Bus-Related Facilities Discretionary Grant Program to support the objectives of the Congestion Initiative.) *http://a257.g.akamaitech.net /7/257/2422/01jan20071800/edocket.access.gpo.gov/2007/pdf/E7-4833.pdf.* 03/23/2007 72 FR 13980 Alternatives Analysis Discretionary Program (This notice solicits proposals to compete for $12 million in Section 5339 funds to support technical work conducted within an alternatives analysis, in which one of the alternatives is a major transit capital investment. FTA will give priority to proposals to develop and apply methods to estimate the time savings experienced by highway users that result from transit investments.) *http://a257.g.akamaitech.net/7/257/2422/01jan20071800/ edocket.access.gpo.gov/2007/pdf/E7-4830.pdf.* Issued On: April 2, 2007. Tyler Duvall, Assistant Secretary for Transportation Policy. [FR Doc. E7-6724 Filed 4-9-07; 8:45 am] BILLING CODE 4910-9X-P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration Notice Before Waiver With Respect to Land at the Montgomery County Airpark, Gaithersburg, MD AGENCY: Federal Aviation Administration (FAA), DOT. ACTION: Notice of intent of waiver with respect to land. SUMMARY: The FAA is publishing notice of proposed release of approximately one quarter (0.25) of an acre of land acquired with local funds at the Montgomery County Airpark to William C. Rickman Construction Company, Inc. The airport will receive 0.35 of an acre owned by Rickman located in the primary surface in exchange in addition to protective easements and other considerations that will complement anticipated airport development. There are no impacts to the Airport and the land is not needed for airport development as shown on the Airport Layout Plan. DATES: Comments must be received on or before May 10, 2007. ADDRESSES: Comments on this application may be mailed or delivered in triplicate to the FAA at the following address: Terry J. Page, Manager, FAA Washington Airports District Office, 23723 Air Freight Lane, Suite 210, Dulles, VA 20166. In addition, one copy of any comments submitted to the FAA must be mailed or delivered to Mr. Keith Miller, Executive Director, at the following address: Mr. Keith Miller, Executive Director, Montgomery County Revenue Authority, 101 Monroe Street, Suite 410, Rockville, Maryland 20850. FOR FURTHER INFORMATION CONTACT: Mr. Terry Page, Manager, Washington Airports District Office, 23723 Air Freight Lane, Suite 210, Dulles, VA 20166; telephone
(703)661-1354, fax
(703)661-1370, e-mail *Terry.Page@faa.gov* . SUPPLEMENTARY INFORMATION: On April 5, 2000, new authorizing legislation became effective. That bill, the Wendell H. Ford Aviation investment and Reform Act for the 21st Century, Pub. L. 10-181 (Apr. 5, 2000; 114 Stat. 61) (AIR 21) requires that a 30-day public notice must be provided before the Secretary may waive any condition imposed on an interest in surplus property. Dated: Issued in Chantilly, Virginia on March 30, 2007. Terry J. Page, Manager, Washington Airports District Office, Eastern Region. [FR Doc. 07-1747 Filed 4-9-07; 8:45 am]
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Traces to 11 documents
U.S. Code
- Public information; agency rules, opinions, orders, records, and proceedings§ 552
- Registration, responsibilities, and oversight of self-regulatory organizations§ 78s
- National securities exchanges§ 78f
- Definitions and application§ 78c
- National system for clearance and settlement of securities transactions§ 78q–1
- Construction of ferry boats and ferry terminal facilities§ 147
- Research and technology development and deployment§ 503
- Availability of funds§ 118
13 references not yet in our index
- 29 CFR 4204
- 17 CFR 240.19
- 17 CFR 19
- 5 USC 78s(b)(3)(A)
- 17 CFR 240.9
- 17 CFR 242.610-611
- Pub. L. 106-50
- Pub. L. 104-13
- 20 CFR 404.907-404
- 23 USC 202-204
- Pub. L. 109-59
- Pub. L. 10-181
- 114 Stat. 61
Citation graph
cites case law
Notices
Notice of approval
Cite29 CFR 4204
Cite17 CFR 240.19
Cite17 CFR 19
Cites 24 · showing 12Cited by 0 across 0 sources