Notices. Notice

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BILLING CODE 6820-NM-M OFFICE OF PERSONNEL MANAGEMENT Excepted Service AGENCY: U.S. Office of Personnel Management (OPM). ACTION: Notice. SUMMARY: This gives notice of OPM decisions granting authority to make appointments under Schedules A, B, and C in the excepted service as required by 5 CFR 6.6 and 213.103. FOR FURTHER INFORMATION CONTACT: C. Penn, Group Manager, Executive Resources Services Group, Center for Human Resources, Division for Human Capital Leadership and Merit System Accountability, 202-606-2246.

SUPPLEMENTARY INFORMATION: Appearing in the listing below are the individual authorities established under Schedules A, B, and C between June 1, 2007, and June 30, 2007. Future notices will be published on the fourth Tuesday of each month, or as soon as possible thereafter. A consolidated listing of all authorities as of June 30 is published each year. Schedule A No Schedule A appointments were approved for June 2007. Schedule B No Schedule B appointments were approved for June 2007.

Schedule C The following Schedule C appointments were approved during June 2007: Section 213.3303 Executive Office of the President Office of Management and Budget BOGS70010 Confidential Assistant to the Deputy Director Office of Management and Budget. Effective June 01, 2007. BOGS70013 Director of Operations to the Director Office of Management and Budget. Effective June 13, 2007. BOGS70015 Confidential Assistant to the Associate Director for National Security Programs. Effective June 28, 2007.

Office of National Drug Control Policy QQGS70011 Confidential Assistant to the Director. Effective June 08, 2007. QQGS70010 Legislative Analyst to the Associate Director Office of Legislative Affairs. Effective June 12, 2007. Section 213.3304 Department of State DSGS61230 Staff Assistant to the Assistant Secretary, Bureau of Educational and Cultural Affairs. Effective June 01, 2007. DSGS61236 Special Assistant to the Women's Human Rights Coordinator. Effective June 01, 2007. DSGS61233 Foreign Affairs Officer to the Assistant Secretary for Western Hemispheric Affairs.

Effective June 06, 2007. DSGS61234 Public Affairs Specialist to the Director. Effective June 06, 2007. DSGS61237 Deputy Chief of Staff to the Secretary of State. Effective June 07, 2007. DSGS61239 Staff Assistant to the Counselor. Effective June 20, 2007. DSGS61225 Legislative Management Officer to the Assistant Secretary for Legislative and Intergovernmental Affairs. Effective June 22, 2007. DSGS61229 Protocol Assistant to the Deputy Chief of Protocol. Effective June 22, 2007.

DSGS61235 Public Affairs Specialist to the Assistant Secretary for Public Affairs. Effective June 22, 2007. DSGS61224 Legislative Management Officer to the Assistant Secretary for Legislative and Intergovernmental Affairs. Effective June 27, 2007. DSGS61238 Program Officer to the Assistant Secretary for Public Affairs. Effective June 27, 2007. Section 213.3305 Department of the Treasury DYGS60139 Director of Scheduling to the Chief of Staff. Effective June 22, 2007. Section 213.3306 Department of Defense DDGS17049 Confidential Assistant to the Deputy Under Secretary of Defense (Acquisition and Technology).

Effective June 01, 2007. DDGS17046 Public Affairs Analyst to the Assistant Secretary of Defense Public Affairs. Effective June 11, 2007. DDGS17044 Special Assistant to the Under Secretary of Defense (Comptroller). Effective June 13, 2007. DDGS17047 Special Assistant to the Assistant Secretary of Defense (Legislative Affairs). Effective June 13, 2007. DDGS17048 Staff Assistant to the Principal Deputy Under Secretary of Defense for Policy. Effective June 13, 2007. DDGS17051 Defense Fellow to the Special Assistant to the Secretary of Defense for White House Liaison.

Effective June 20, 2007. Section 213.3307 Department of the Army DWGS00087 Special Assistant to the Principal Deputy Assistant Secretary of the Army (Financial Management and Comptroller). Effective June 28, 2007. Section 213.3310 Department of Justice DJGS00183 Counsel to the Counselor and Chief of Staff. Effective June 08, 2007. DJGS00207 Special Assistant to the Director of the Violence Against Women Office. Effective June 11, 2007. DJGS00078 Counsel to the Counselor and Chief of Staff.

Effective June 15, 2007. DJGS00325 Staff Assistant to the Assistant Attorney General (Legislative Affairs). Effective June 20, 2007. DJGS00378 Special Assistant to the Director, Office of Public Affairs. Effective June 22, 2007. Section 213.3311 Department of Homeland Security DMGS00673 Special Assistant for Faith Based and Community Initiatives to the Director of Faith-Based and Community Initiatives. Effective June 06, 2007. DMGS00676 Special Assistant to the Director, Bureau of Citizenship and Immigration Services.

Effective June 06, 2007. DMGS00665 Confidential Assistant to the Chief of Staff. Effective June 13, 2007. DMGS00671 Coordinator for Local Affairs to the Assistant Secretary for Intergovernmental Programs. Effective June 13, 2007. DMGS00672 Confidential Assistant to the Secretary to the Chief of Staff. Effective June 13, 2007. DMGS00666 Counselor to the General Counsel. Effective June 15, 2007. DMGS00674 Special Assistant, Office of International Affairs to the Chief of Staff.

Effective June 15, 2007. DMGS00678 Advisor to the Director for Congressional and Intergovernmental Affairs to the Director, Bureau of Citizenship and Immigration Services. Effective June 22, 2007. DMOT00679 Special Assistant to the Assistant Secretary, Transportation Security Administration. Effective June 22, 2007. DMGS00682 Special Assistant to the Executive Secretary. Effective June 28, 2007. DMGS00683 Deputy Director of Scheduling and Protocol Coordinator to the Director of Scheduling and Advance.

Effective June 28, 2007. Section 213.3312 Department of the Interior DIGS01093 White House Liaison to the Chief of Staff. Effective June 21, 2007. DIGS01103 Special Assistant to the Director, External and Intergovernmental Affairs. Effective June 21, 2007. DIGS70007 Special Assistant to the Director National Park Service. Effective June 22, 2007. DIGS01104 Special Assistant for Alaskan Affairs to the Senior Adviser to the Secretary for Alaskan Affairs. Effective June 28, 2007.

Section 213.3313 Department of Agriculture DAGS00899 Staff Assistant to the Under Secretary for Natural Resources and Environment. Effective June 01, 2007. DAGS00906 Press Assistant to the Director of Communications. Effective June 14, 2007. DAGS00900 Confidential Assistant to the Administrator, Foreign Agricultural Service. Effective June 18, 2007. DAGS00907 Staff Assistant to the Administrator. Effective June 21, 2007. DAGS00897 Deputy Director of Intergovernmental Affairs to the Assistant Secretary for Congressional Relations.

Effective June 22, 2007. DAGS00902 Deputy White House Liaison to the Secretary. Effective June 22, 2007. DAGS00903 Advance Representative to the Director of Communications. Effective June 22, 2007. DAGS00904 Director of Legislative Affairs to the Administrator, Foreign Agricultural Service. Effective June 22, 2007. DAGS00905 Special Assistant to the Administrator to the Under Secretary for Marketing and Regulatory Programs. Effective June 22, 2007. Section 213.3314 Department of Commerce DCGS00460 Director of Intergovernmental Affairs to the Assistant Secretary for Legislative and Intergovernmental Affairs.

Effective June 07, 2007. DCGS60536 Speechwriter to the Director for Speechwriting. Effective June 08, 2007. DCGS00339 Confidential Assistant to the Assistant Secretary for Legislative and Intergovernmental Affairs. Effective June 21, 2007. DCGS00427 Senior Advisor to the Assistant Secretary for Export Enforcement. Effective June 21, 2007. DCGS00521 Confidential Assistant to the Deputy Assistant Secretary for Domestic Operations. Effective June 21, 2007. DCGS00608 Confidential Assistant to the Under Secretary for International Trade.

Effective June 21, 2007. DCGS00502 Deputy Director of Advance to the Director of Advance. Effective June 22, 2007. Section 213.3315 Department of Labor DLGS60144 Staff Assistant to the Director, 21st Century Office and Deputy Assistant Secretary for Intergovernmental Affairs. Effective June 01, 2007. DLGS60086 Senior Advisor to the Wage and Hour Administrator. Effective June 06, 2007. DLGS60209 Chief of Staff to the Assistant Secretary for Veterans Employment and Training. Effective June 06, 2007.

DLGS60269 Special Assistant to the Director of Scheduling. Effective June 06, 2007. DLGS60041 Staff Assistant to the Executive Assistant to the Secretary. Effective June 27, 2007. DLGS60249 Attorney Adviser to the Deputy Solicitor of Labor. Effective June 28, 2007. Section 213.3316 Department of Health and Human Services DHGS60060 Special Assistant to the Deputy for Policy and External Affairs. Effective June 13, 2007. DHGS60545 Special Assistant to the Assistant Secretary, Health.

Effective June 27, 2007. DHGS60054 Special Assistant to the Assistant Secretary for Administration and Management. Effective June 29, 2007. Section 213.3317 Department of Education DBGS00618 Chief of Staff to the Assistant Deputy Secretary. Effective June 06, 2007. DBGS00620 Special Assistant to the Assistant Secretary for Postsecondary Education. Effective June 06, 2007. Section 213.3318 Environmental Protection Agency EPGS07011 Associate Assistant Administrator/White House Liaison to the Assistant Administrator for Administration and Resources Management.

Effective June 06, 2007. EPGS07012 Advance Specialist to the Director of Advance. Effective June 15, 2007. EPGS07010 Press Secretary to the Associate Administrator for Public Affairs. Effective June 22, 2007. Section 213.3323 Federal Communications Commission FCGS95448 Attorney Advisor (Legal Advisor) to the Chairman. Effective June 12, 2007. Section 213.3325 United States Tax Court JCGS60078 Trial Clerk to the Chief Judge. Effective June 07, 2007. Section 213.3327 Department of Veterans Affairs DVGS60084 Special Assistant to the Assistant Secretary for Congressional and Legislative Affairs.

Effective June 22, 2007. Section 213.3331 Department of Energy DEGS00591 Special Assistant for Communication to the Chief Operating Officer for Energy Efficiency and Renewable Energy. Effective June 01, 2007. DEGS00594 Senior Advisor for Public Affairs to the Director, Public Affairs (National Nuclear Security Administration). Effective June 06, 2007. DEGS00596 Press Assistant to the Director, Public Affairs (National Nuclear Security Administration). Effective June 12, 2007.

DEGS00595 Speechwriter to the Director, Public Affairs. Effective June 14, 2007. DEGS00598 Special Assistant to the Assistant Secretary for Policy and International Affairs. Effective June 15, 2007. DEGS00597 Special Assistant to the Assistant Secretary for Congressional and Intergovernmental Affairs. Effective June 21, 2007. DEGS00599 Assistant Press Secretary to the Director, Public Affairs. Effective June 28, 2007. DEGS00600 Special Assistant to the Deputy Assistant Secretary for Natural Gas and Petroleum Technology.

Effective June 28, 2007. Section 213.3332 Small Business Administration SBGS00615 Senior Advisor, Office of Performance Management to the Director of Performance Management. Effective June 06, 2007. SBGS00616 Deputy Associate Administrator for Field Operations to the Associate Administrator for Field Operations. Effective June 06, 2007. SBGS00617 Special Assistant to the Associate Administrator for Government Contracting and Business Development. Effective June 06, 2007. Section 213.3333 Federal Deposit Insurance Corporation FDOT00013 Special Counselor to the Chairman of the Board of Directors (Director).

Effective June 28, 2007. Section 213.3337 General Services Administration GSGS60126 Deputy Associate Administrator for Communications to the Associate Administrator for Citizen Services and Communications. Effective June 20, 2007. GSGS60089 Confidential Assistant to the Administrator. Effective June 25, 2007. Section 213.3384 Department of Housing and Urban Development DUGS60419 Speechwriter to the General Deputy Assistant Secretary for Public Affairs. Effective June 11, 2007.

Section 213.3394 Department of Transportation DTGS60351 Counselor to the Deputy Secretary. Effective June 06, 2007. Section 213.3396 National Transportation Safety Board TBGS71538 Special Assistant to a Member. Effective June 01, 2007. Authority: 5 U.S.C. 3301 and 3302; E.O. 10577, 3 CFR 1954-1958 Comp., p. 218. U.S. Office of Personnel Management. Tricia Hollis, Chief of Staff. [FR Doc. E7-15802 Filed 8-10-07; 8:45 am] BILLING CODE 6325-39-P SECURITIES AND EXCHANGE COMMISSION Submission for OMB Review;

Comment Request Upon Written Request, Copies Available From: Securities and Exchange Commission, Office of Investor Education and Advocacy, Washington, DC 20549-0213. Extension: Rule 248.30; SEC File No. 270-549; OMB Control No. 3235-0610. Notice is hereby given that pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 *et seq.* ) the Securities and Exchange Commission (“Commission”) has submitted to the Office of Management and Budget (“OMB”) a request for extension of the previously approved collection of information for rule 248.30 under Regulation S-P (17 CFR 248.30), titled “Procedures to Safeguard Customer Records and Information;

Disposal of Consumer Report Information.” Rule 248.30 (the “safeguard rule”) requires brokers, dealers, investment companies, and investment advisers registered with the Commission (“registered investment advisers”) (collectively “covered institutions”) to adopt written policies and procedures for administrative, technical, and physical safeguards to protect customer records and information. The safeguards must be reasonably designed to “insure the security and confidentiality of customer records and information,” “protect against any anticipated threats or hazards to the security and integrity” of those records, and protect against unauthorized access to or use of those records or information, which “could result in substantial harm or inconvenience to any customer.

” The safeguard rule's requirement that covered institutions' policies and procedures be documented in writing constitutes a collection of information and must be maintained on an ongoing basis. This requirement eliminates uncertainty as to required employee actions to protect customer records and information and promotes more systematic and organized reviews of safeguard policies and procedures by institutions. The information collection also assists the Commission's examination staff in assessing the existence and adequacy of covered institutions' safeguard policies and procedures.

The Commission staff estimates that approximately 449 new entities are subject to the requirements of the safeguard rule's documentation requirement each year. Of these, we estimate that 389 will be small entities, and that on average a small entity will spend an average of 15 hours to develop and document its safeguard policies and procedures. The Commission staff therefore estimates a one-time hour burden for these new, smaller entities of 5,835 hours. We estimate that 60 additional large institutions will be subject to the rule, and that on average each new large institution will spend 715 hours to develop and document their safeguard policies and procedures, for a one-time burden of 42,900 hours.

Thus, we estimate a one-time hour burden for new entities of 48,735 hours per year. The Commission staff also estimates that 2,080 institutions review and update their policies and procedures under the rule each year. We estimate that 815 of these institutions are smaller entities that spend an average of 6 hours reviewing and updating their policies and procedures once per year, or 4,890 hours annually. We estimate that an additional 1,265 larger institutions spend an average of 30 hours to review and update their safeguard policies and procedures, or 37,950 hours each year.

Accordingly, we estimate that the annual burden for covered institutions that review and update their safeguard policies and procedures is 42,840 hours. We therefore estimate a total of 2,529 respondents and an annual burden of 91,575 hours associated with the rule's collection of information requirement. These estimates of average burden hours are made solely for the purposes of the Paperwork Reduction Act. An agency may not conduct or sponsor, and a person is not required to respond to a collection of information unless it displays a currently valid control number.

The safeguard rule does not require the reporting of any information or the filing of any documents with the Commission. The collection of information required by the safeguard rule is mandatory. General comments regarding the above information should be directed to the following persons:

(i)Desk Officer for the Securities and Exchange Commission, Office of Information and Regulatory Affairs, Office of Management and Budget, Room 10102, New Executive Office Building, Washington, DC 20503 or e-mail to: *David_Rostker@omb.eop.gov* ; and

(ii)R. Corey Booth, Director/Chief Information Officer, Securities and Exchange Commission, C/O Shirley Martinson, 6432 General Green Way, Alexandria, VA 22312, or send an e-mail to: *PRA_Mailbox@sec.gov* . Comments must be submitted to OMB within 30 days of this notice. Dated: August 6, 2007. Florence E. Harmon, Deputy Secretary. [FR Doc. E7-15722 Filed 8-10-07; 8:45 am] BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION Submission for OMB Review; Comment Request Upon Written Request, Copies Available From: Securities and Exchange Commission, Office of Investor Education and Assistance, Washington, DC 20549-0213. *Extension:* Rule 15Bc3-1 and Form MSDW, SEC File No. 270-93, OMB Control No. 3235-0087. Notice is hereby given that, pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 *et seq.* ), the Securities and Exchange Commission (“Commission”) has submitted to the Office of Management and Budget (“OMB”) a request for approval of extension of the previously approved collection of information discussed below. Rule 15Bc3-1 (17 CFR 240.15Bc3-1) under the Securities Exchange Act of 1934 (15 U.S.C. 78a *et seq.* ) provides that a notice of withdrawal from registration with the Commission as a bank municipal securities dealer must be filed on Form MSDW. The Commission uses the information submitted on Form MSDW in determining whether it is in the public interest to permit a bank municipal securities dealer to withdraw its registration. This information is also important to the municipal securities dealer's customers and to the public, because it provides, among other things, the name and address of a person to contact regarding any of the municipal securities dealer's unfinished business. Based upon past submissions, the staff estimates that approximately 20 respondents will utilize this notice annually, with a total burden for all respondents of 10 hours. The staff estimates that the average number of hours necessary to comply with the requirements of Rule 15Bc3-1 is 0.5 hours. The average cost per hour is approximately $101. Therefore, the total cost of compliance for the respondents is $1010 ($101 × 0.5 × 20 = $1010). Providing the information on the notice is mandatory in order to withdraw from registration with the Commission as a bank municipal securities dealer. The information contained in the notice will not be confidential. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid control number. Providing the information on the application is mandatory in order to register with the Commission as a bank municipal securities dealer. The information contained in the application will not be kept confidential. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid control number. General comments regarding the estimated burden hours should be directed to the following persons:

(ii)R. Corey Booth, Director/Chief Information Officer, Securities and Exchange Commission, C/O Shirley Martinson, 6432 General Green Way, Alexandria, VA 22312 or send an e-mail to: *PRA_Mailbox@sec.gov.* Comments must be submitted to OMB within 30 days of this notice. Dated: July 30, 2007. Nancy M. Morris, Secretary. [FR Doc. E7-15735 Filed 8-10-07; 8:45 am] BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION Submission for OMB Review; Comment Request Upon Written Request, Copies Available From: Securities and Exchange Commission, Office of Investor Education and Assistance, Washington, DC 20549-0213. *Extension:* Rule 303; SEC File No. 270-450; OMB Control No. 3235-0505. Notice is hereby given that pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 *et seq.* ), the Securities and Exchange Commission (“Commission”) has submitted to the Office of Management and Budget a request for extension of the previously approved collection of information discussed below. Regulation ATS (17 CFR 242.300 *et seq.* ) under the Securities Exchange Act of 1934 (15 U.S.C. 78a *et seq.* ) provides a regulatory structure that directly addresses issues related to alternative trading systems' role in the marketplace. Regulation ATS allows alternative trading systems to choose between two regulatory structures. Alternative trading systems have the choice between registering as broker-dealers and complying with Regulation ATS or registering as national securities exchanges. Regulation ATS provides the regulatory framework for those alternative trading systems that choose to be regulated as broker-dealers. Rule 303 of Regulation ATS describes the record preservation requirements for alternative trading systems that are not national securities exchanges. Alternative trading systems that register as broker-dealers, comply with Regulation ATS, and meet certain volume thresholds are required to preserve all records made pursuant to Rule 302, which includes information relating to subscribers, trading summaries and order information. Such alternative trading systems are also required to preserve records of any notices communicated to subscribers, a copy of the system's standards for granting access to trading, and any documents generated in the course of complying with the capacity, integrity and security requirements for automated systems under Rule 301(b)(6) of Regulation ATS. Rule 303 also describes how such records must be kept and how long they must be preserved. The information contained in the records required to be preserved by the Rule will be used by examiners and other representatives of the Commission, state securities regulatory authorities, and the SROs to ensure that alternative trading systems are in compliance with Regulation ATS as well as other rules and regulations of the Commission and the SROs. Without the data required by the proposed Rule, the Commission would be limited in its ability to comply with its statutory obligations, provide for the protection of investors and promote the maintenance of fair and orderly markets. Respondents consist of alternative trading systems that choose to register as broker-dealers and comply with the requirements of Regulation ATS. The Commission estimates that there are currently approximately 65 respondents. An estimated 65 respondents will spend approximately 260 hours per year (65 respondents at 4 burden hours/respondent) to comply with the record preservation requirements of Rule 303. At an average cost per burden hour of $86.54, the resultant total related cost of compliance for these respondents is $22,500.00 per year (260 burden hours multiplied by $86.54/hour; a slight discrepancy is due to arithmetic rounding). Compliance with Rule 303 is mandatory. The information required by the Rule 303 is available only to the examination of the Commission staff, state securities authorities and the SROs. Subject to the provisions of the Freedom of Information Act, 5 U.S.C. 522, and the Commission's rules thereunder (17 CFR 200.80(b)(4)(iii)), the Commission does not generally publish or make available information contained in any reports, summaries, analyses, letters, or memoranda arising out of, in anticipation of, or in connection with an examination or inspection of the books and records of any person or any other investigation. Regulation ATS requires alternative trading systems to preserve any records, for at least three years, made in the process of complying with the systems capacity, integrity and security requirements. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid control number. Comments should be directed to

(ii)R. Corey Booth, Director/Chief Information Officer, Securities and Exchange Commission, c/o Shirley Martinson, 6432 General Green Way, Alexandria, VA 22312 or send an e-mail to: *PRA_Mailbox@sec.gov.* Comments must be submitted within 30 days of this notice. Dated: July 30, 2007. Nancy M. Morris, Secretary. [FR Doc. E7-15736 Filed 8-10-07; 8:45 am] BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION Proposed Collection; Comment Request Upon Written Request, Copies Available From: Securities and Exchange Commission, Office of Investor Education and Advocacy, Washington, DC 20549-0213. Extension: Rule 17a-7; SEC File No. 270-147; OMB Control No. 3235-0131. Notice is hereby given that pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 *et seq.* ), the Securities and Exchange Commission (“Commission”) is soliciting comments on the collection of information summarized below. The Commission plans to submit this existing collection of information to the Office of Management and Budget for extension and approval. Rule 17a-7 (17 CFR 240.17a-7) under the Securities Exchange Act of 1934 (“Exchange Act”) (15 U.S.C. 78a *et seq.* ) requires non-resident broker-dealers registered or applying for registration pursuant to section 15 of the Exchange Act to maintain—in the United States—complete and current copies of books and records required to be maintained under any rule adopted under the Securities Exchange Act of 1934. Alternatively, Rule 17a-7 provides that the non-resident broker-dealer may sign a written undertaking to furnish the requisite books and records to the Commission upon demand. There are approximately 54 non-resident brokers and dealers. Based on the Commission's experience in this area, it is estimated that the average amount of time necessary to preserve the books and records required by Rule 17a-7 is one hour per year. Accordingly, the total burden is 54 hours per year. With an average cost per hour of approximately $245, the total cost of compliance for the respondents is $13,230 per year. Written comments are invited on:

(a)Whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information shall have practical utility;

(b)the accuracy of the agency's estimate of the burden of the proposed collection of information;

(c)ways to enhance the quality, utility, and clarity of the information to be collected; and

(d)ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology. Consideration will be given to comments and suggestions submitted in writing within 60 days of this publication. Comments should be directed to: R. Corey Booth, Director/Chief Information Officer, Securities and Exchange Commission, c/o Shirley Martinson, 6432 General Green Way, Alexandria, Virginia 22312 or send an e-mail to: *PRA_Mailbox@sec.gov.* Comments must be submitted within 60 days of this notice. Dated: August 6, 2007. Florence E. Harmon, Deputy Secretary. [FR Doc. E7-15764 Filed 8-10-07; 8:45 am] BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-56210; File No. SR-Amex-2007-58] Self-Regulatory Organizations; American Stock Exchange, LLC.; Notice of Filing and Order Granting Accelerated Approval to Proposed Rule Change Modifying an Aspect of the Definition of Independent Director August 6, 2007. Pursuant to Section 19(b)(1) 1 of the Securities Exchange Act of 1934 (“Act”) and Rule 19b-4 thereunder, 2 notice is hereby given that on June 8, 2007, the American Stock Exchange, LLC. (“Amex” or “Exchange”) filed with the Securities and Exchange Commission (“Commission”) the proposed rule change as described in Items I and II below, which Items have been prepared by the Exchange. This order provides notice of the proposed rule change and approves the proposed rule change on an accelerated basis. 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b-4. I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend Section 121A(2)(b) of its Company Guide (“Guide”) to modify an aspect of the definition of “independent director.” The text of the proposed rule change is available at Amex, the Commission's Public Reference Room, and *http://www.amex.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 III below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose Under current Section 121A(2)(b) of the Guide, a director of a listed issuer is generally precluded from being considered “independent” if that director has received more than $60,000 in compensation from the issuer or any parent or subsidiary of the issuer during any period of twelve consecutive months within the three years preceding the determination of independence. 3 The Exchange proposes to raise this amount to $100,000, which is the same amount specified by both the New York Stock Exchange, LLC. (“NYSE”) 4 and NASDAQ Stock Market, LLC. (“Nasdaq”) 5 in their comparable provisions. 3 *See* Section 121A(2)(b) of the Guide. 4 *See* Section 303A.02(b)(ii) of the NYSE Listed Company Manual. 5 *See* Nasdaq Rule 4200(a)(15)(B). The Exchange believes that the current $60,000 threshold was originally based on the disclosure threshold set by the Commission in Regulation S-K, Item 404. 6 The Exchange notes that the Commission last year adopted a proposal to raise the threshold in Item 404 of Regulation S-K to $120,000 7 and recently approved Nasdaq's proposal to raise the compensation threshold in its definition of independent director from $60,000 to $100,000. 8 As a result, the Exchange believes that it would be appropriate to also raise its compensation threshold. 6 17 CFR 229.404. 7 *See* Securities Exchange Act Release No. 54302A (August 29, 2006), 71 FR 53158 (September 8, 2006). 8 *See* Securities Exchange Act Release No. 55463 (March 13, 2007), 72 FR 13327 (March 21, 2007) (SR-NASDAQ-2006-041). Further, the Exchange believes that by making its “bright line” test with respect to the maximum amount of compensation a director can receive from the issuer (or any parent or subsidiary) consistent with the equivalent tests of NYSE and Nasdaq, it will provide a uniform standard for issuers to understand and apply. However, the Exchange notes that even if a director passes the “bright line” test as proposed to be amended, an issuer's board of directors must still make an affirmative determination that such director has no relationship whatsoever with the issuer that would interfere with the director's exercise of independent judgment. 9 9 *See* Section 121A(2) of the Guide. 2. Statutory Basis The Exchange states that the proposed rule change is consistent with Section 6(b) of the Act 10 in general, and furthers the objectives of Section 6(b)(5) of the Act 11 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. 10 15 U.S.C. 78f(b). 11 15 U.S.C. 78f(b)(5). B. Self-Regulatory Organization's Statement on Burden on Competition According to the Exchange, 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. The Exchange believes that the proposed rule change will promote greater uniformity with the corporate governance standards of other markets. 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. 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-Amex-2007-58 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-Amex-2007-58. 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, 100 F Street, NE., Washington, DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. Copies of such filing also will be available for inspection and copying at the principal office of Amex. 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-Amex-2007-58 and should be submitted on or before September 4, 2007. IV. Commission's Findings and Order Granting Accelerated Approval of the Proposed Rule Change The Commission finds that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange. 12 In particular, the Commission finds that the proposed rule change is consistent with Section 6(b)(5) of the Act, 13 which requires, among other things, that the Exchange's rules 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. The proposed rule change would raise the amount of compensation that precludes a director from being an “independent director” from $60,000 to $100,000. The Commission believes that this change will promote greater uniformity among the corporate governance listing standards of national securities exchanges because it aligns Amex's rule with the equivalent rules at Nasdaq 14 and the NYSE. 15 12 In approving this proposal, the Commission has considered its impact on efficiency, competition, and capital formation. *See* 15 U.S.C. 78c(f). 13 15 U.S.C. 78f(b)(5). 14 *See* Nasdaq Rule 4200(a)(15)(b) and IM-4200—“Definition of Independence.” 15 *See* Section 303A.02(b)(ii) of the NYSE Listed Company Manual. The Commission finds good cause, consistent with Section 19(b)(2) of the Act, 16 for approving this proposed rule change before the thirtieth day after the publication of notice thereof in the **Federal Register.** As noted above, the proposed rule change would harmonize Amex's standard concerning the maximum amount of compensation an independent director could receive from the issuer (or its parent or subsidiary) with the standard of other markets. As such, the Commission believes the proposal raises no new regulatory issues and that no reasonable purpose would be served by delaying its implementation. 16 15 U.S.C. 78s(b)(2). V. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act, 17 that the proposed rule change (SR-Amex-2007-58), be, and it hereby is, approved on an accelerated basis. 17 *Id.* For the Commission, by the Division of Market Regulation, pursuant to delegated authority. 18 Florence E. Harmon, Deputy Secretary. 18 17 CFR 200.30-3(a)(12). [FR Doc. E7-15725 Filed 8-10-07; 8:45 am] BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-56214; File No. SR-CBOE-2007-92] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Establish Transaction Fees for Credit Default Options August 7, 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 July 27, 2007, the Chicago Board Options Exchange, Incorporated (“Exchange” or “CBOE”) 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 Exchange. The Exchange has designated this proposal as one establishing or changing a due, fee, or other charge imposed by CBOE 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 Exchange proposes to amend its Fees Schedule to establish fees for transactions in certain Credit Default Options (“CDOs”). The text of the proposed rule change is available on the Exchange's Web site ( *http://www.cboe.org/Legal* ), at the Exchange's principal office, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, 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 those 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 recently received approval to list and trade certain CDOs, which are binary call options based on credit events in one or more debt securities of an issuer or guarantor. 5 The purpose of this rule change is to establish transaction fees for these CDOs. 5 *See* Securities Exchange Act Release No. 55871 (June 6, 2007), 72 FR 32372 (June 12, 2007) (SR-CBOE-2006-84). The transactions fee shall be $0.20 per contract for Market-Makers, Designated Primary Market-Makers, and Remote Market-Makers; $0.20 per contract for member firm proprietary transactions; $0.25 per contract for manually executed broker-dealer transactions; $0.45 per contract for electronically executed broker-dealer transactions ( *i.e.* , broker-dealer orders that are automatically executed on the CBOE Hybrid Trading System); 6 and $0.85 per contract for public customer transactions. In addition, the Exchange's Liquidity Provider Sliding Scale 7 shall apply to transaction fees in CDOs, but the Exchange's Marketing Fee 8 shall not apply. The Exchange believes the rule change will further the Exchange's goal of introducing new products to the marketplace that are competitively priced. 6 Broker-dealer manual and electronic transaction fees will apply to broker-dealer orders (orders with “B” origin code), non-member market-maker orders (orders with “N” origin code), and orders from specialists in the underlying security (orders with “Y” origin code). 7 *See* Footnote 10 of the Fees Schedule. 8 *See* Footnote 6 of the Fees chedule. 2. Statutory Basis The proposed rule change is consistent with Section 6(b) of the Act, 9 in general, and furthers the objectives of Section 6(b)(4) of the Act, 10 in particular, in that it is designed to provide for the equitable allocation of reasonable dues, fees, and other charges among CBOE members and other persons using its facilities. 9 15 U.S.C. 78f(b). 10 15 U.S.C. 78f(b)(4). B. Self-Regulatory Organization's Statement on Burden on Competition CBOE 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 neither solicited nor received comments on the proposal. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed 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 11 and subparagraph (f)(2) of Rule 19b-4 thereunder. 12 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. 11 15 U.S.C. 78s(b)(3)(A). 12 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-CBOE-2007-92 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-2007-92. 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, 100 F Street, NE., Washington, DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. 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-2007-92 and should be submitted on or before September 4, 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. E7-15756 Filed 8-10-07; 8:45 am] BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-56207; File No. SR-NASD-2007-044] Self-Regulatory Organizations; National Association of Securities Dealers, Inc. (n/k/a Financial Industry Regulatory Authority, Inc.); Notice of Filing of Proposed Rule Change To Expand the Class of Entities Permitted To Use the Delta Hedging Exemption From Equity Options Position Limits August 6, 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 June 29, 2007, the National Association of Securities Dealers, Inc. (“NASD”) (n/k/a Financial Industry Regulatory Authority, Inc.) 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 FINRA. 3 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 On July 26, 2007, the Commission approved a proposed rule change filed by NASD to amend NASD's Certificate of Incorporation to reflect its name change to Financial Industry Regulatory Authority Inc., or FINRA, in connection with the consolidation of the member firm regulatory functions of NASD and NYSE Regulation, Inc. *See* Securities Exchange Act Release No. 56146 (July 26, 2007), 72 FR 42190 (August 1, 2007). I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change FINRA proposes to amend Rule 2860 to expand the class of entities permitted to use the delta hedging exemption from equity options position limits. The text of the proposed rule change is available on FINRA's Web site ( *www.finra.org* ), at FINRA, 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, FINRA 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. FINRA 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 Background Over the past several years, FINRA has increased in absolute terms the size of the options position and exercise limits as well as the size and scope of available exemptions for “hedged” positions. 4 The exemptions for hedged positions generally required a one-to-one hedge, *i.e.* , one stock option contract must be hedged by the number of shares covered by the options contract, typically 100 shares. In practice, however, many firms do not hedge their options positions in this way. Rather, these firms engage in what is known as “delta hedging,” which varies the number of shares of stock used to hedge an options position based upon the relative sensitivity of the value of the option contract to a change in the price of the underlying stock. 5 FINRA believes that delta hedging is widely accepted for net capital and risk management purposes. 4 *See* Securities Exchange Act Release Nos. 47307 (February 3, 2003), 68 FR 6977 (February 11, 2003) (SR-NASD-2002-134); 40932 (January 11, 1999), 64 FR 2930 (January 19, 1999) (SR-NASD-98-92); 40087 (June 12, 1998), 63 FR 33746 (June 19, 1998) (SR-NASD-98-23); and 39771 (March 19, 1998), 63 FR 14743 (March 26, 1998) (SR-NASD-98-15). 5 For example, an option with a delta of .5 will move $0.50 for every $1.00 move in the underlying stock. In 2004, the Commission approved amendments to Rule 2860 that provide a delta hedging exemption from stock options position and exercise limits 6 for positions held by affiliates of NASD members approved by the Commission as “OTC Derivatives Dealers.” 7 At that time, the Commission reiterated its “support for recognizing options positions hedged on a delta neutral basis as properly exempted from position limits.” 8 6 The proposed rule change does not expressly amend FINRA's options exercise limits in Rule 2860(b)(4) because such exercise limits apply only to the extent Rule 2860(b)(3) imposes position limits. Thus, as delta neutral positions would be exempt from position limits under the proposed rule change, such positions also would be exempt from exercise limits. *See* NASD *Notice to Members* 94-46 (June 1994) at 2 (“* * * exercise limits correspond to position limits, such that investors in options classes on the same side of the market are allowed to exercise * * * only the number of options contracts set forth as the applicable position limit for those options classes.”). Similarly, for positions held that are not delta neutral, only the option contract equivalent of the net delta of such positions would be subject to exercise limits. 7 *See* Securities Exchange Act Release No. 50748 (November 29, 2004), 69 FR 70485 (December 6, 2004) (SR-NASD-2004-153). 8 *Id.* at 70486. Broadening the Scope of FINRA's Delta Hedging Exemption In the proposed rule change, FINRA is expanding the delta hedging exemption beyond OTC Derivatives Dealers to include broker-dealers and certain other financial institutions (“Exemption”). Specifically, the proposed rule change would permit *any* member, or non-member affiliate permitted to rely on new proposed subparagraph

(B)or

(C)of Rule 2860(b)(3)(A)(vii)b.1. (described below), 9 to apply the delta model developed by the Options Clearing Corporation. 9 *See infra* notes 11 and 12 and accompanying text. In addition, certain other broker-dealers and affiliated entities, described below, would be permitted to use a proprietary model(s) to calculate options position net deltas provided that the use of such models were in accordance with the entity's internal risk management control systems. The options contract equivalent of the net delta 10 of a hedged options position still would be subject to the position limits in Rule 2860 (subject to the availability of any other position limit exemptions). 10 “Net delta” would be defined in Rule 2860(b)(2)(GG) to mean “the number of shares that must be maintained (either long or short) to offset the risk that the value of an equity options position will change with incremental changes in the price of the security underlying the options position.” Options Contract Equivalent of the Net Delta” would be defined in proposed Rule 2860(b)(2)(LL) to mean the net delta divided by the number of shares underlying the options contract. For example, if a member is short 20,000 call contracts (each representing 100 shares of stock) with a delta of .5, the member would need to be long 1,000,000 shares of stock to hedge that position. Assume that the member was long 600,000 shares and had another permitted offset ( *e.g.* , a swap or futures contract) representing another 200,000 shares of stock. In that case, the net delta of that position would be 200,000 shares (1,000,000—600,000 long shares—200,000 swap or future); and the number of contracts attributable to that position would be 2,000 contracts (200,000 shares / 100 shares per contract) on the short side of the market. “Permitted Pricing Models” for purposes of the Exemption would be pricing models used by:

(1)A member or its affiliate subject to consolidated supervision by the Commission pursuant to Appendix E of Rule 15c3-1 under the Act; 11

(2)a financial holding company (“FHC”) or a company treated as an FHC under the Bank Holding Company Act of 1956, or its affiliate subject to consolidated holding company group supervision; 12

(3)an SEC registered OTC derivatives dealer; 13

(4)a national bank under the National Bank Act; 14 and, as previously noted,

(5)a member, or non-member affiliate (as permitted by subparagraph

(B)or

(C)of proposed Rule 2860(b)(3)(A)(vii)b.1.), using a pricing model maintained and operated by the Options Clearing Corporation. 11 Use of such pricing model would be required to be consistent with the requirements of Appendices E or G, as applicable, to Rules 15c3-1 and 15c3-4 under the Act in connection with the calculation of risk-based deductions from capital or capital allowances for market risk thereunder. *See* subparagraph

(B)of proposed Rule 2860(b)(3)(A)(vii)b.1. 12 An FHC's affiliate that is part of the FHC's consolidated supervised holding company group would be eligible to use this part of the Exemption. An FHC's (or an affiliate's) use of a proprietary model would have to be consistent with either:

(i)The requirements of the Board of Governors of the Federal Reserve System, as amended from time to time, in connection with the calculation of risk-based adjustments to capital for market risk under capital requirements of the Board of Governors of the Federal Reserve System; or

(ii)the standards published by the Basel Committee on Banking Supervision, as amended from time to time and as implemented by such company's principal regulator, in connection with the calculation of risk-based deductions or adjustments to or allowances for the market risk capital requirements of such principal regulator applicable to such company—where “principal regulator” means a member of the Basel Committee on Banking Supervision that is the home country consolidated supervisor of such company. *See* subparagraph

(C)of proposed Rule 2860(b)(3)(A)(vii)b.1. It is important to note that the U.S. activities of entities subject to the Basel standards still are overseen by the Federal Reserve Board, and FINRA would be relying upon that oversight in extending exemptive relief to such entities. 13 This part of the Exemption would replace in its entirety current Rule 2860(b)(3)(a)vii.b. An OTC Derivative Dealer's use of a proprietary model would be required to be consistent with the requirements of Appendix F to Rule 15c3-1 and Rule 15c3-4 under the Act, as amended from time to time, in connection with the calculation of risk-based deductions from capital for market risk thereunder. Only an OTC Derivatives Dealer and no other affiliated entity (including a member) would be able to rely upon this particular part of the Exemption. *See* subparagraph

(D)of proposed new Rule 2860(b)(3)(A)(vii)b.1. 14 The use of a proprietary model by a national bank would be required to be consistent with the requirements of the Office of the Comptroller of the Currency, as amended from time to time, in connection with the calculation of risk-based adjustments to capital for market risk under capital requirements of the Office of the Comptroller of the Currency. An affiliate of a national bank (including a FINRA member) would not be permitted to rely on this part of the Exemption. *See* subparagraph

(E)of proposed Rule 2860(b)(3)(A)(vii)b.1. Irrespective of the features of any proprietary pricing model, only financial instruments relating to the security underlying an equity options position would be permitted to be included in any determination of an equity options position's net delta or whether the options position is delta neutral. For example, a short position in XYZ calls could be hedged with a long position in XYZ warrants. However, a short position in XYZ calls would not be permitted to be hedged with any financial instrument relating to a security *other than* XYZ stock. In addition, firms would not be permitted to use the same equity or other financial instrument position in connection with more than one hedge exemption. Thus, a stock position used as part of a delta hedge would not be permitted also to serve as the basis for any other equity option hedge exemption. Obligations of Members and Affiliates A member that intends to employ, or whose non-member affiliate intends to employ, the Exemption would be required to provide a written certification to FINRA stating that the member and/or its affiliate will use a Permitted Pricing Model as described above and defined in the Rule, and that if an affiliate ceases to hedge stock options positions in accordance with such systems and models, it will provide immediate written notice to the member. In addition, the options positions of a non-member relying on the Exemption would be required to be carried by a member with which it is affiliated. Any options position that is not delta neutral would remain subject to position and exercise limits (subject, however, to the availability of other exemptions). While delta hedging generally is employed as part of an overall risk management program, firms do not necessarily hedge every position to be delta neutral, *i.e.* , having a net delta of zero. In such cases, only the options contract equivalent of the net delta of any such options position would be subject to position limits. Impact on “Aggregation” Guidance FINRA recently issued guidance on when certain options accounts may be “disaggregated.” 15 The proposed rule change would impact this guidance in the following way: Generally, an entity that relies on the proposed rule change would be required to ensure that a Permitted Pricing Model is applied to all positions in or relating to the security underlying the relevant options position that are owned or controlled by the entity, or its affiliates. However, the net delta of an options position held by an entity entitled to rely on this Exemption, or by a separate and distinct trading unit of such entity, would be permitted to be calculated without regard to positions in or relating to the security underlying the option held by an affiliated entity or by another trading unit within the same entity, provided that:

(1)The entity demonstrates to FINRA's satisfaction that no control relationship, as defined in *Notice to Members* 07-03, exists between such affiliates or trading units; and

(2)the entity has provided FINRA written notice in advance that it intends to be considered separate and distinct from any affiliate, or, as applicable, which trading units within the entity are to be considered separate and distinct from each other for purposes of this Exemption. 16 15 *See* NASD *Notice to Members* 07-03 (January 2007). 16 *See* proposed subparagraph (A)(vii)b.2 of Rule 2860(b)(3). FINRA has set forth, in *Notice to Members* 07-03, the conditions under which it will deem no control relationship to exist between affiliates and between separate and distinct trading units within the same entity. Position Reporting Today, under paragraph (b)(5) of Rule 2860, a broker-dealer must report any options position in which the member has an interest, and each customer, non-member broker or non-member dealer account, which has established an aggregate position of 200 or more options contracts (whether long or short) of the put class and the call class on the same side of the market. Under the proposed rule change, FINRA would retain these reporting thresholds even with respect to options positions of any member or designated aggregation unit that are delta neutral. In addition, however, each member, or designated aggregation unit pursuant to proposed subparagraph (b)(3)(A)(vii)b.2., also shall report the options equivalent of the net delta of a position if such position represents 200 or more contracts (whether long or short) on the same side of the market covering the same underlying stock that are effected by the member. Referring to the example above, a member who is short 20,000 call contracts with a delta of .5 and long 600,000 shares of stock and long 200,000 shares through a SWAP or futures contract, would report:

(a)Its options position as short 20,000 contracts and

(b)its options equivalent of the net delta as short 2,000 contracts. FINRA and other self-regulatory organizations are working on modifying the Large Options Position Reporting system and/or the Options Clearing Corporation reports to allow a member to indicate that an equity options position is being delta hedged. Reliance on Federal Oversight FINRA notes that when it provided exemptive relief for OTC Derivatives Dealers in 2004, NASD indicated that it believed that the rigor of the Commission's OTC Derivatives Dealer approval process and the ongoing oversight by the Commission staff provided an appropriate basis for exempting delta neutral positions in options held by such entities from position and exercise limits. 17 The proposed rule change's extension of exemptive relief to additional users of proprietary models similarly relies upon the rigorous approval processes and ongoing oversight of a federal financial regulator. 17 *See* Securities Exchange Act Release No. 50539 (October 19, 2004), 69 FR 61884, 61885 (October 21, 2004)(SR-NASD-2004-153). In an effort to leverage the existing federal oversight in this area, FINRA has developed procedures to monitor members' compliance with the proposed delta hedging position limit rules. Specifically, FINRA would employ a narrowly circumscribed program around the employment of delta hedging by eligible broker-dealers. FINRA would examine to the extent of:

(1)Reviewing that the eligible broker-dealers have policies and procedures to determine their net positions in ascertaining any option holdings in respect of position limits including the reduction from any such net positions any positions subject to delta hedging or allowable equity option hedges; and

(2)determining that the eligible broker-dealers represent that they have made any reduction from such net option positions pursuant to and in accordance with a model, or the processes that develop a model, for delta hedging that have been approved by an applicable federal regulator. It is important to note that FINRA is not under any obligation to test:

(1)The integrity of a model, its processes or methodology; or

(2)the employment of such models by eligible broker-dealers as to any data inputs, calculations or any other utilization of the model. FINRA will announce the effective date of the proposed rule change in a *Notice to Members* to be published no later than 60 days following Commission approval. The effective date will be no later than 30 days following publication of the *Notice to Members* announcing Commission approval. 2. Statutory Basis FINRA believes that the proposed rule change is consistent with the provisions of Section 15A(b)(6) of the Act, 18 which requires, among other things, that FINRA rules be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, and, in general, to protect investors and the public interest. FINRA believes that it is appropriate, subject to certain conditions, to exempt options positions of entities subject to an extensive regulatory framework of a federal financial regulator from position limits and require that only the option contract equivalent of the net delta of a stock options position be subject to position limits. 18 15 U.S.C. 78 *o* -3(b)(6). B. Self-Regulatory Organization's Statement on Burden on Competition FINRA does not believe that the proposed rule change would result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others Written comments were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Within 35 days of the date of publication of this notice in the **Federal Register** or within such longer period

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

(ii)as to which the self-regulatory organization consents, the Commission will:

(A)By order approve such proposed rule change, or

(B)Institute proceedings to determine whether the proposed rule change should be disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission's Internet comment form ( *http://www.sec.gov/rules/sro.shtml* ); or • Send an e-mail to *rule-comments@sec.gov* . Please include File Number SR-NASD-2007-044 on the subject line. Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-NASD-2007-044. 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, on official business days between the hours of 10 am and 3 pm. Copies of such filing also will be available for inspection and copying at the principal office of FINRA. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-NASD-2007-044 and should be submitted on or before September 4, 2007. For the Commission, by the Division of Market Regulation, pursuant to delegated authority. 19 19 17 CFR 200.30-3(a)(12). Florence E. Harmon, Deputy Secretary. [FR Doc. E7-15723 Filed 8-10-07; 8:45 am] BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-56211; File No. SR-ISE-2007-34] Self-Regulatory Organizations; International Securities Exchange, LLC; Order Approving a Proposed Rule Change Relating to an Amendment to the International Securities Exchange, LLC Constitution and Amended and Restated LLC Agreement August 6, 2007. I. Introduction On May 8, 2007, 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 amend the Exchange's Constitution (“ISE Constitution” or “Constitution”) and Amended and Restated LLC Agreement (“ISE LLC Agreement”). The proposed rule change was published for comment in the **Federal Register** on June 4, 2007. 3 The Commission received no comments regarding the proposal. This order approves the proposed rule change. 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b-4. 3 *See* Securities Exchange Act Release No. 55809 (May 23, 2007), 72 FR 30894. II. Description of the Proposal Currently, the ISE Constitution requires that the President of the Exchange and the Chief Executive Officer (“CEO”) of the Exchange be the same person. The Constitution also currently requires that the number of directors on the board of directors (“Board”) of the Exchange be fixed at 15, to be comprised of:

(i)Two “PMM Directors” 4 ;

(ii)two “CMM Directors” 5 ;

(iii)two “EAM Directors” 6 ;

(iv)eight “Non-Industry Directors” 7 —at least two of whom must be “Public Directors” 8 —and

(v)the person holding the office of President and CEO. 4 As set forth in Article III, Section 3.2(b)(i) of the ISE Constitution, a PMM Director is an officer, director, or partner of a Primary Market Maker elected by a plurality of the holders of the PMM Rights ( *see* Article XII, Section 12.1 of the ISE Constitution) voting together as a class. 5 As set forth in Article III, Section 3.2(b)(ii) of the ISE Constitution, a CMM Director is an officer, director, or partner of a Competitive Market Maker elected by a plurality of the holders of the CMM Rights ( *see* Article XII, Section 12.2 of the ISE Constitution) voting together as a class. 6 As set forth in Article III, Section 3.2(b)(iii) of the ISE Constitution, an EAM Director is an officer, director, or partner of an Electronic Access Member elected by the plurality of the holders of the EAM Rights ( *see* Article XII, Section 12.3 of the ISE Constitution) voting together as a class. 7 As set forth in Article III, Section 3.2(b)(iii) of the ISE Constitution, a “Non-Industry Director” is a director elected by the Sole LLC Member ( *see infra,* note 9) who meets the requirements to be a “non-industry representative.” A “non-industry representative” is defined in Article XIII, Section 13.1(w) as any person that would not be considered an “industry representative” (see below) as well as:

(i)a person affiliated with a broker or dealer that operates solely to assist the securities-related activities of the business of non-member affiliates,

(ii)an employee of an entity that is affiliated with a broker or dealer that does not account for a material portion of the revenues of the consolidated entity, and who is primarily engaged in the business of the non-member entity. An “industry representative” is defined in Article XIII, Section 13.1(t) as a person who is an officer, director, or employee of a broker or dealer or who has been employed in any such capacity at any time within the prior three years, as well as a person who has a consulting or employment relationship with or has provided professional services to the Exchange and a person who had any such relationship or provided any such services to the Exchange at any time within the prior three years. 8 As set forth in Article III, Section 3.2(b)(iv) of the ISE Constitution, a “Public Director” must be a “public representative,” defined in Article XIII, Section 13.1(dd) as a non-industry representative ( *see supra,* note 7) who has no material business relationship with a broker or dealer or the Exchange. The proposed rule change would remove the requirement that the President be the CEO, and amend the ISE Constitution to require that the director position described in subparagraph

(v)above be held by the CEO. The proposal also would amend the Constitution to establish the number of directors at no less than 15 and no more than 16. In conjunction with these changes, Sole LLC Member, 9 in its sole and absolute discretion, would be able to elect one additional director (“Former Employee Director”) who was employed by the Exchange at any time during the three-year period prior to his or her initial election but otherwise meets the definition of a Non-Industry Director under the Exchange's Constitution. 10 The proposed rule change also would make conforming amendments to the ISE LLC Agreement. 9 As set forth in Article I, Section 1.1 of the ISE Constitution, the ISE is a single member limited liability company with one limited liability company interest currently authorized (the “LLC Interest”). The holder of the LLC interest is International Securities Exchange Holdings, Inc., which may assign the LLC Interest as provided in the LLC Agreement (the “Sole LLC Member”). 10 The term of a Former Employee Director would expire at the annual meeting of holders of Exchange Rights and the Sole LLC Member held in the second year following the year of his or her election. (Regarding Exchange Rights, *see* Article I, Section 1.2 of the ISE Constitution and Article VI of the ISE LLC Agreement.) A Former Employee Director would not be permitted to serve on the Board for more than three consecutive terms, but would be eligible for election as a director following a two-year hiatus from service on the Board, provided that he or she meets the relevant requirements. *See* proposed new Section 3.2(e)(iv) to Article III of the ISE Constitution. According to the Exchange, the proposed modifications to its governance structure would provide it with the flexibility to structure its board of directors in a way that would enable the ISE to attract and keep talented individuals. III. Discussion After careful review, the Commission finds that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange. Specifically, the Commission finds that the proposed rule change is consistent with section 6(b)(1) of the Act, 11 which requires, among other things, that an exchange be so organized and have the capacity to be able to carry out the purposes of the Act; and with section 6(b)(5) of the Act, 12 which requires, among other things, that the rules of a national securities exchange be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to remove impediments to, and perfect the mechanism of, a free and open market and a national market system, and, in general, to protect investors and the public interest. 13 11 15 U.S.C. 78f(b)(1). 12 15 U.S.C. 78f(b)(5). 13 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 notes that the additional member that the Sole LLC Member would be permitted to elect to the Board, aside from having been an Exchange employee within the prior three years, otherwise would be required to meet the qualifications of a Non-Industry Director. Thus, the Former Employee Director could not be a person who is an officer, director, or employee of a broker or dealer or who has been employed in any such capacity at any time within the prior three years. Further, the Commission notes that, under the proposed rule change, the ISE Constitution would continue to provide that eight of the members of the Exchange's board of directors—out of a maximum total of 16 members—must be non-industry representatives. The Commission believes that this proposed balance with respect to the composition of the Exchange's Board is consistent with other self-regulatory organization governance structures that were approved by the Commission. 14 14 *See, e.g.* , Securities Exchange Act Release No. 54494 (September 25, 2006), 71 FR 58023 (October 2, 2006). IV. Conclusion *It is therefore ordered,* pursuant to section 19(b)(2) of the Act, 15 that the proposed rule change (SR-ISE-2007-34) be, and hereby is, approved. 15 15 U.S.C. 78s(b)(2). For the Commission, by the Division of Market Regulation, pursuant to delegated authority. 16 16 17 CFR 200.30-3(a)(12). Florence E. Harmon, Deputy Secretary. [FR Doc. E7-15758 Filed 8-10-07; 8:45 am] BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-56204; File No. SR-NASDAQ-2007-070] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Adopt Certain FINRA Rules Relating to Trading Halts and Disclosure of Disciplinary Information August 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 August 3, 2007, The NASDAQ Stock Market LLC (“Nasdaq”), filed with the Securities and Exchange Commission (“Commission”) the proposed rule change as described in Items I and II below, which Items have been substantially prepared by Nasdaq. Nasdaq has designated the proposed rule change as one constituting a non-controversial rule change under Section 19(b)(3)(A)(iii) 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)(iii). 4 17 CFR 240.19b-4(f)(6). I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change Nasdaq proposes this rule change to add several rules, based on Financial Industry Regulatory Authority, Inc. (“FINRA”) rules, that were inadvertently omitted from the Nasdaq rulebook when Nasdaq became a national securities exchange. The text of the proposed rule change is available on Nasdaq's Web site at *http://www.nasdaq.com,* at Nasdaq's principal office, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, 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 To ensure that FINRA members did not incur significant regulatory burdens as a result of Nasdaq separating from FINRA and registering as a national securities exchange, Nasdaq based its rules governing regulatory standards and disciplinary processes on FINRA rules, to a significant extent. Over the past few months, however, it has come to Nasdaq's attention that several FINRA rules that arguably should have been copied into the Nasdaq rulebook were inadvertently omitted during the exchange registration process. Nasdaq believes that adding these rules will enhance Nasdaq's regulatory programs and enhance FINRA's ability to serve as Nasdaq's regulatory services provider under NASD Regulation's regulatory services agreement with Nasdaq. 5 5 Notwithstanding the fact that Nasdaq has entered into a regulatory services agreement with NASD Regulation to perform some of Nasdaq's functions, Nasdaq retains ultimate legal responsibility for, and control of, such functions. Accordingly, Nasdaq is adding new Rule 3340, which explicitly prohibits Nasdaq members and their associated persons from trading during a trading halt. The rule is written broadly to cover effecting transactions or publishing quotations, priced bids and/or offers, unpriced indications of interest, or bids or offers accompanied by a modifier to reflect unsolicited customer interest, in securities, single stock futures, and futures on narrow indexes that could be used as proxies for trading in the halted stock. Although Nasdaq believes that violations of a trading halt by a Nasdaq member could currently be addressed as violations of Rule 2110, which mandates high standards of commercial honor and just and equitable principles of trade, adding the rule to its rulebook will provide added clarity with regard to the requirement. Second, Nasdaq is adopting IM-8310-3, which provides for release of disciplinary complaints, decisions and other information regarding Nasdaq members and their associated persons. 6 The Rule is drafted to be administered by Nasdaq Regulation, which under Rule 8001, is defined to include FINRA staff, NASD Regulation staff, and FINRA departments acting on Nasdaq's behalf pursuant to Nasdaq's regulatory services agreement. 7 Nasdaq's rule would empower its Chief Regulatory Officer to make certain determinations regarding the scope of disclosure; the comparable FINRA rule looks to the NASD Regulation Board of Directors or the President of FINRA Regulatory Policy and Oversight to make comparable decisions. In all other material respects, however, Nasdaq's IM-8310-3 will be substantively similar to FINRA's comparable Interpretive Material. 6 Among other things, the Interpretive Material contains descriptions of when particular decisions become effective. In this regard, the Interpretive Material is merely describing the parameters otherwise established in the 9000 Series of the Nasdaq Rules. Accordingly, Nasdaq believes that including the descriptions in the Interpretive Material enhances its clarity. 7 Nasdaq will amend its entire rulebook at a later date to replace references to NASD with references to FINRA. 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 sections 6(b)(5) of the Act, 9 in particular, in that the proposal 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 regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, 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. 8 15 U.S.C. 78f. 9 15 U.S.C. 78f(b)(5). B. Self-Regulatory Organization's Statement on Burden on Competition Nasdaq does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act, as amended. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others Written comments were neither solicited nor received with respect to 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) of the Act 10 and Rule 19b-4(f)(6) thereunder. 11 10 15 U.S.C. 78s(b)(3)(A). 11 17 CFR 240.19b-4(f)(6). Nasdaq has requested that the Commission waive the 30-day pre-operative period for “non-controversial” proposals because it adopts rules that are already part of FINRA rules, and the waiver will allow FINRA to process disciplinary matters as Nasdaq's regulatory services provider in accordance with the disclosure standards provided in IM-8310-3 without delay. In light of the foregoing, the Commission believes that waiver of the 30-day operative delay is consistent with the protection of investors and the public interest. Accordingly, the Commission has determined to waive the operative delay, and the proposed rule change has become effective pursuant to section 19(b)(3)(A) of the Act, 12 and Rule 19b-4(f)(6) thereunder, 13 with no operative delay. 14 12 15 U.S.C. 78s(b)(3)(A). 13 17 CFR 240.19b-4(f)(6). 14 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-NASDAQ-2007-070 on the subject line. Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, Station Place, 100 F. Street, NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-NASDAQ-2007-070. 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, 100 F. Street, NE., Washington, DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. 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-2007-070 and should be submitted on or before September 4, 2007. For the Commission, by the Division of Market Regulation, pursuant to delegated authority. 15 15 17 CFR 200.30-3(a)(12). Florence E. Harmon, Deputy Secretary. [FR Doc. E7-15757 Filed 8-10-07; 8:45 am] BILLING CODE 8010-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-56209; File No. SR-NYSE-2007-65] Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Rule 79A.30 (Miscellaneous Requirements on Stock Market Procedures) August 6, 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 July 24, 2007, the New York Stock Exchange LLC (“NYSE” 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 as a “non-controversial” proposed rule change pursuant to section 19(b)(3)(A) 3 of the Act 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 is proposing to amend NYSE Rule 79A.30 to remove the requirement to obtain Floor Official approval before trading more than one or two dollars away from the last sale. The proposed amendment would preserve the requirement in situations:

(i)Where such trades are initiated by a specialist in connection with certain manual transactions when the NYSE market is “slow”; and

(ii)where such trades are initiated by the specialist when reaching across the market when the market is “fast.” The filing also makes certain non-substantive changes to the language of the rule in order to clarify existing provisions and procedures, and conforms the rule to changes in Exchange rules made subsequent to the last time NYSE Rule 79A.30 was amended. The text of the proposed rule change is available at the Exchange, the Commission's Public Reference Room, and *http://www.nyse.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. NYSE has substantially 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 NYSE Rule 79A.30 to remove the requirement that members obtain prior approval from an Exchange Floor Official for trades that are more than $1.00 from the last sale when such previous sale is under $20.00 per share, or more than $2.00 from the last sale when such previous sale is $20.00 per share or more. The requirement to obtain approval would continue to apply in situations where:

(i)The market is “slow” 5 and a proposed trade results from a pricing decision by the specialist in connection with such market events as, for example, the opening or reopening of trading, the resumption of trading after a gapped quotation has been published, the resumption of trading in the security following the triggering of a Liquidity Replenishment Point® (“LRP”), or when the specialist is arranging the closing transaction in a stock; or

(ii)the market is “fast” and the specialist as dealer is manually reaching across the market. 6 The Exchange states that the amendment addresses changes in the marketplace that have resulted from the implementation of the NYSE's Hybrid Market®. 5 For purposes of the rule, the NYSE will be considered to be a slow market when displaying a bid or offer (or both) that is not entitled to protection of Rule 611 under Regulation NMS. 6 When reaching across the market to hit the bid or take the offer, the specialist must engage the report template in the Display Book, ensure that the bid/offer price is correct, enter the amount of the specialist interest, and hit the done key. NYSE Rule 79A.30, in its original form, predates the federal securities laws. It was initially aimed at preventing undue price dislocation by the specialist at the opening but gradually was extended to all trades significantly away from the last sale. 7 This requirement had merit in the manual auction market, particularly when the market was both more centralized and less transparent than it is today, but as the market has evolved toward decentralized and transparent trading, the rule has lost some of its original purpose and utility. 7 The rule was extended in 1945 to all transactions more than $2.00 from the last sale, and, in 1970, to groups of related transactions that would move the stock price more than $2.00. The $1.00 parameter for stocks trading under $20.00 per share was added in 1979. For example, the rule functioned in part as a safeguard against market manipulation by specialists and brokers, and also controlled price volatility, by requiring a Floor Official who was not party to the transaction to review and approve all proposed transactions that exceeded the rule's parameters before they were published to the consolidated tape. This ensured that specialists were maintaining appropriate price continuity and depth, and that Floor brokers were not transacting in the Crowd at unduly wide variations from the last sale. As a result of changes in the market in recent years, particularly the decentralization of control of pricing decisions away from the specialist and Floor broker, and the greater availability to all market participants of timely trade and quote information, the Exchange believes that NYSE Rule 79A.30 is no longer either necessary or viable in its present form. In particular, since the implementation of Phase III of the NYSE Hybrid Market®, the Exchange has observed that the process of obtaining prior Floor Official approval for transactions one or two points away from the last sale does not add meaningful value in the context of electronic trading, for two reasons:

(i)Automated quoting and the entry of orders for automatic execution do not permit time for the involvement of Floor Officials before automated executions occur; and

(ii)the greater availability of information in the market obviates much of the protection that such approval was designed to provide, in any event. 8 8 Notwithstanding this, NYSE Regulation has continued conducting Rule 79A.30 surveillance, identifying situations where the one or two point parameter was exceeded without Floor Official approval. The NYSE has observed that many of the exceptions generated relate to the automated execution of electronic interest where it would not have been possible for the individual violating the rule to have sought approval for the transaction because either they entered their order from off the floor, or from on the floor but at a distance from the point of sale. Regarding the time required to obtain approval, the Exchange notes that requiring Floor Official approval for automated trades would, in effect, turn fast markets slow while a specialist or Floor broker requested approval and a Floor Official considered the request. This delay could impact the ability of a market participant to receive the best execution possible. At the same time, the Exchange believes that there is less need for such approval in the modern market because of the wide commercial availability of real-time trading data, through such products as NYSE Open Book® 9 and similar products provided by other market centers that trade NYSE-listed securities ( *e.g.* , NYSE Arca, the Nasdaq Market Center, and BATS). Before such tools existed, a party entering an order that might trade outside the one or two point parameter had little or no direct way to evaluate the likely price impact of such an order. Consequently, the rule provided for a Floor Official to certify that the price movement was warranted from his or her neutral perspective (that is, based upon information available to the Floor Official but not necessarily to the party entering or representing the order in question). In contrast, in electronic markets there is significantly more information available in near real-time, and so customers engaging in electronic trading can more readily assess the impact of their actions before they enter an order for automatic execution or representation on the Floor, and can adjust their actions as necessary. 9 NYSE Open Book is provided by the NYSE to vendors in two modes. The first displays the depth of the market refreshed every five seconds. The second displays the depth of the market in real time. The monthly subscription price of the former is $50, and the monthly subscription price of the latter is $60. NYSE Open Book discloses limit order interest at the price at the best bid and offer and at prices below the best bid and above the best offer. It does not include broker reserve interest, convert and parity orders (“CAP orders”), or stop orders. The Exchange reaches the same conclusion with respect to manual auction market trading in the Crowd between brokers or between the specialist and a broker. This is both because of the improved, widely-available real-time market information noted above and because in such situations, the transactions are ultimately subject to the business scrutiny of the upstairs trader who entered the order and who generally has access to the same information as the broker or specialist and therefore can determine the appropriateness (or inappropriateness) of the pricing decision. The Exchange believes that this business scrutiny has added teeth as well, since the upstairs customer who believes the price variation was unreasonable could demand price adjustment in the form of a difference check 10 or, where the specialist is the agent, could refuse the execution altogether. 11 10 *See* Exchange Rule 134(d).20. 11 *See* Exchange Rule 91 and Supplementary Materials. Notwithstanding this general conclusion, the Exchange believes that the restrictions in NYSE Rule 79A.30 continue to be useful in certain situations including:

(i)Where the market is slow and the specialist is making a unilateral pricing decision not on an agency basis ( *e.g.* , at openings, reopenings and the close; when the quotation has been gapped; and when an LRP has been reached and the market is locked or crossed and the specialist trades out of the situation); and

(ii)when the market is fast and the specialist as dealer is reaching across the market. The Exchange believes that in these situations, there is continuing merit in requiring Floor Official approval for trades that are more than $1.00 from the last sale when such previous sale is under $20.00 per share, or more than $2.00 from the last sale when such previous sale is $20.00 per share or more, since independent evaluation and prior approval by a Floor Official of such pricing decisions will ensure that specialists continue to make fair and orderly markets in situations where a significant imbalance between supply and demand is being addressed. The Exchange notes in addition that the proposed rule change would shift the timing of the approval. Whereas currently Floor Official approval may be obtained after the trade takes place but before it is published to the consolidated tape, the proposed rule change would require that the specialist obtain approval prior to transactions. The Exchange believes this shift is consistent with the underlying concern in the rule of ensuring that there are not undue price dislocations in a stock. The Exchange also notes that its proposal to remove the requirement of prior Floor Official approval for most trading as specified under Rule 79A.30 would remove a restriction on the Exchange that does not exist for other automated market centers, thus removing the current undue competitive restraint that application of the rule to automated trading on the Exchange implies, but would retain certain benefits of the existing rule. In connection with the substantive amendment, the Exchange is proposing to make certain additional conforming amendments to Rule 79A.30. Among other things, the Exchange is proposing to delete the last two paragraphs in the rule, which address situations where a Floor broker is driving the price change in an effort to execute block size interest. Since the proposed amendment would permit such trading without Floor Official approval, the Exchange believes that the language in the two paragraphs is no longer necessary. The Exchange further proposes to amend Rule 79A.30 to clarify that prior Floor Official for one- and two-point sales as required under the proposed amendment would continue not to apply to inactively traded stocks. 12 The current text of Rule 79A.30 on its face applies only to “stocks at the active Posts,” which is an anachronistic reference to inactively-traded stocks. It derived from the fact that stocks that were very inactively traded used to be handled at the Exchange Floor's Post 30, often referred to as the “inactive Post.” Some years ago, these very thinly traded securities were moved to a Panel at one of the active Posts, and so the reference in the rule to “active Posts” became unclear. Accordingly, the proposed amendment would delete the reference to “active posts” and would insert language that clearly states that neither paragraph

(a)nor

(b)of the proposed amendment applies to inactively traded securities. The Exchange states that this would not effect a substantive change to the current rule. 12 For the period January 1 through May 31, 2007, 181 thinly traded or inactive securities traded at Post 4 Panels L, M, and N and include 96 nonconvertible preferred stocks (61 one hundred-share units and 35 ten-share units) and 85 structured products. As to their trading characteristics, these 181 inactive securities had an average of six and a half million shares outstanding (the minimum was 1,600 shares, the median was 11.4 million shares, and the maximum was 81 million shares) and an average daily trading volume of 4,000 shares (the minimum was 3 shares, the median was 4,000 shares, and the maximum was 44,100 shares). The Exchange further proposes to delete the reference to NYSE Rule 123A.40 in paragraph

(a)of the rule. Rule 123A.40, which governs the handling of stop orders, was amended in relation to the Hybrid Market. In the Hybrid Market, specialists no longer see accumulating stop order volume and the related electing process and are, therefore, not responsible for manually processing elected stop orders. Instead, an elected stop order becomes a market order upon election and is eligible for automated execution without Floor Official approval. Accordingly, the Exchange believes that the reference to Rule 123A.40 in Rule 79A.30 is outdated and should be deleted. Finally, with respect to paragraph

(c)of the rule, which governs the requirements for reporting a one or two point sale to the consolidated tape, the Exchange believes that the requirement to report a one or two point sale as “sold” would be rendered moot by the proposed amendment. Those markers are intended to signal to the market that a trade was reported to the consolidated tape late and out of sequence with subsequent trades. Since, as proposed for amendment, the rule would require that Floor Official approval be obtained before a trade outside the parameters of the rule is effected, there would no longer be a lag time between the execution of a one and two point sale and the related report to the consolidated tape. Accordingly, one and two point sales that occur after the Opening would no longer need to be reported to the consolidated tape as late to the consolidated tape and out of sequence, unless the report to the consolidated tape was accidentally not made at the time of execution. The NYSE notes that one and two point sales which occur on the Opening would continue to be marked “OPD,” which means “opened.” 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with section 6(b) of the Act, 13 in general, and furthers the objectives of section 6(b)(5) of the Act, 14 in particular, because it is 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. 13 15 U.S.C. 78f(b). 14 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 would impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others 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 Exchange has designated the proposed rule change as one that does not:

(i)Significantly affect the protection of investors or the public interest;

(ii)impose any significant burden on competition; or

(iii)become operative for 30 days after the date of filing (or such shorter time as the Commission may designate if consistent with the protection of investors and the public interest), the proposed rule change has become effective pursuant to section 19(b)(3)(A) of the Act 15 and subparagraph (f)(6) of Rule 19b-4 thereunder. 16 15 15 U.S.C. 78s(b)(3)(A). 16 17 CFR 240.19b-4(f)(6). A proposed rule change filed under Rule 19b-4(f)(6) normally does not become operative prior to 30 days after the date of filing. 17 However, Rule 19b-4(f)(6)(iii) 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 satisfied the five-day pre-filing requirement of Rule 19b-4(f)6)(iii). In addition, the Exchange has requested that the Commission waive the 30-day operative delay and designate the proposed rule change operative upon filing. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest because it would allow the Exchange to remove an impediment to Hybrid Market trading without delay. Therefore, the Commission designates the proposal operative upon filing. 18 17 17 CFR 240.19b-4(f)(6)(iii). 18 For purposes only of waiving the operative delay of this proposal, 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 the 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-2007-65 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-2007-65. 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, 100 F Street, NE., Washington, DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. 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-2007-65 and should be submitted on or before September 4, 2007. For the Commission, by the Division of Market Regulation, pursuant to delegated authority. 19 19 17 CFR 200.30-3(a)(12). Florence E. Harmon, Deputy Secretary. [FR Doc. E7-15724 Filed 8-10-07; 8:45 am] BILLING CODE 8010-01-P SMALL BUSINESS ADMINISTRATION [Disaster Declaration #10948] North Dakota Disaster Number ND-00008 AGENCY: U.S. Small Business Administration. ACTION: Amendment 1. SUMMARY: This is an amendment of the Presidential declaration of a major disaster for Public Assistance Only for the State of North Dakota (FEMA-1713-DR), dated 07/17/2007. *Incident:* Severe Storms and Flooding. *Incident Period:* 06/02/2007 through 06/18/2007. EFFECTIVE DATE: 08/03/2007. *Physical Loan Application Deadline Date:* 09/17/2007. ADDRESSES: Submit completed loan applications to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155. FOR FURTHER INFORMATION CONTACT: A. Escobar, Office of Disaster Assistance, U.S. Small Business Administration, 409 3rd Street, SW., Suite 6050, Washington, DC 20416. SUPPLEMENTARY INFORMATION: The notice of the President's major disaster declaration for Private Non-Profit organizations in the State of North Dakota 07/17/2007, is hereby amended to include the following areas as adversely affected by the disaster. Primary Counties: Cass, Cavalier. All other information in the original declaration remains unchanged. (Catalog of Federal Domestic Assistance Number 59008) Herbert L. Mitchell, Associate Administrator for Disaster Assistance. [FR Doc. E7-15768 Filed 8-10-07; 8:45 am] BILLING CODE 8025-01-P SMALL BUSINESS ADMINISTRATION [Disaster Declaration #10927 and #10928] Oklahoma Disaster Number OK-00012 AGENCY: U.S. Small Business Administration. ACTION: Amendment 3. SUMMARY: This is an amendment of the Presidential declaration of a major disaster for the State of Oklahoma (FEMA-1712-DR), dated July 7, 2007. *Incident:* Severe Storms, Flooding, and Tornadoes. *Incident Period:* June 10, 2007 through July 25, 2007. EFFECTIVE DATE: August 3, 2007. *Physical Loan Application Deadline Date:* Septemeber 5, 2007. *EIDL Loan Application Deadline Date:* April 7, 2007. ADDRESSES: Submit completed loan applications to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155. FOR FURTHER INFORMATION CONTACT: A. Escobar, Office of Disaster Assistance, U.S. Small Business Administration, 409 3rd Street, SW., Suite 6050, Washington, DC 20416. SUPPLEMENTARY INFORMATION: The notice of the Presidential disaster declaration for the State of Oklahoma, dated July 7, 2007 is hereby amended to include the following areas as adversely affected by the disaster: Primary Counties: Logan, Payne, Pontotoc, Seminole. Contiguous Counties: Oklahoma: Canadian, Coal, Creek, Garfield, Garvin, Hughes, Johnston, Kingfisher, Murray, Noble, Pawnee. All other information in the original declaration remains unchanged. (Catalog of Federal Domestic Assistance Numbers 59002 and 59008) Herbert L. Mitchell, Associate Administrator for Disaster Assistance. [FR Doc. E7-15769 Filed 8-10-07; 8:45 am] BILLING CODE 8025-01-P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration Notice Before Waiver With Respect to Land at Leesburg Executive Airport, Leesburg, VA 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 from aeronautical use of approximately 22,170 square feet of land at the Leesburg Executive Airport, Leesburg, Virginia to the Town of Leesburg. The release will facilitate the widening of Sycolin Road that will improve access to the airport and provide needed capacity of the road system. 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 September 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. Timothy B. Deike, Director, Leesburg Executive Airport, at the following address: Mr. Timothy B. Deike, Director, Leesburg Executive Airport, 1001 Sycolin Road, SE., Leesburg, Virginia 20175. 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, Public Law 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. Issued in Chantilly, Virginia, on August 6, 2007. Terry J. Page, Manager, Washington Airports District Office, Eastern Region. [FR Doc. 07-3919 Filed 8-10-07; 8:45 am]

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U.S. Code