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Code · REGISTER · 2007-11-14 · Railroad Retirement Board · Notices

Notices. Notice

19,072 words·~87 min read·/register/2007/11/14/07-5639·

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BILLING CODE 7590-01-P RAILROAD RETIREMENT BOARD 2008 Railroad Experience Rating Proclamations, Monthly Compensation Base and Other Determinations AGENCY: Railroad Retirement Board. ACTION: Notice. SUMMARY: Pursuant to section 8(c)(2) and section 12(r)(3) of the Railroad Unemployment Insurance Act
(Act)(45 U.S.C. 358(c)(2) and 45 U.S.C. 362(r)(3), respectively), the Board gives notice of the following: 1. The balance to the credit of the Railroad Unemployment Insurance
(RUI)Account, as of June 30, 2007, is $119,250,233.05; 2. The September 30, 2007, balance of any new loans to the RUI Account, including accrued interest, is zero; 3. The system compensation base is $3,522,368,374.78 as of June 30, 2007; 4. The cumulative system unallocated charge balance is ($292,991,595.22) as of June 30, 2007; 5. The pooled credit ratio for calendar year 2008 is zero; 6. The pooled charged ratio for calendar year 2008 is zero; 7. The surcharge rate for calendar year 2008 is 1.5 percent; 8. The monthly compensation base under section 1(i) of the Act is $1,280 for months in calendar year 2008; 9. The amount described in section 1(k) of the Act as “2.5 times the monthly compensation base” is $3,200 for base year (calendar year) 2008; 10. The amount described in section 2(c) of the Act as “an amount that bears the same ratio to $775 as the monthly compensation base for that year as computed under section 1(i) of this Act bears to $600” is $1,653 for months in calendar year 2008; 11. The amount described in section 3 of the Act as “2.5 times the monthly compensation base” is $3,200 for base year (calendar year) 2008; 12. The amount described in section 4(a-2)(i)(A) of the Act as “2.5 times the monthly compensation base” is $3,200 with respect to disqualifications ending in calendar year 2008; 13. The maximum daily benefit rate under section 2(a)(3) of the Act is $61 with respect to days of unemployment and days of sickness in registration periods beginning after June 30, 2008. DATES: The balance in notice
(1)and the determinations made in notices
(3)through
(7)are based on data as of June 30, 2007. The balance in notice
(2)is based on data as of September 30, 2007. The determinations made in notices
(5)through
(7)apply to the calculation, under section 8(a)(1)(C) of the Act, of employer contribution rates for 2008. The determinations made in notices
(8)through
(12)are effective January 1, 2008. The determination made in notice
(13)is effective for registration periods beginning after June 30, 2008. ADDRESSES: Secretary to the Board, Railroad Retirement Board, 844 Rush Street, Chicago, Illinois 60611-2092. FOR FURTHER INFORMATION CONTACT: Marla L. Huddleston, Bureau of the Actuary, Railroad Retirement Board, 844 Rush Street, Chicago, Illinois 60611-2092, telephone
(312)751-4779. SUPPLEMENTARY INFORMATION: The RRB is required by section 8(c)(1) of the Railroad Unemployment Insurance Act
(Act)(45 U.S.C. 358(c)(1)) as amended by Public Law 100-647, to proclaim by October 15 of each year certain system-wide factors used in calculating experience-based employer contribution rates for the following year. The RRB is further required by section 8(c)(2) of the Act (45 U.S.C. 358(c)(2)) to publish the amounts so determined and proclaimed. The RRB is required by section 12(r)(3) of the Act (45 U.S.C. 362(r)(3)) to publish by December 11, 2007, the computation of the calendar year 2008 monthly compensation base (section 1(i) of the Act) and amounts described in sections 1(k), 2(c), 3 and 4(a-2)(i)(A) of the Act which are related to changes in the monthly compensation base. Also, the RRB is required to publish, by June 11, 2008, the maximum daily benefit rate under section 2(a)(3) of the Act for days of unemployment and days of sickness in registration periods beginning after June 30, 2008. Surcharge Rate A surcharge is added in the calculation of each employer's contribution rate, subject to the applicable maximum rate, for a calendar year whenever the balance to the credit of the RUI Account on the preceding June 30 is less than the greater of $100 million or the amount that bears the same ratio to $100 million as the system compensation base for that June 30 bears to the system compensation base as of June 30, 1991. If the RUI Account balance is less than $100 million (as indexed), but at least $50 million (as indexed), the surcharge will be 1.5 percent. If the RUI Account balance is less than $50 million (as indexed), but greater than zero, the surcharge will be 2.5 percent. The maximum surcharge of 3.5 percent applies if the RUI Account balance is less than zero. The system compensation base as of June 30, 1991 was 2,763,287,237.04. The system compensation base for June 30, 2007 was $3,522,368,374.78. The ratio of $3,522,368,374.78 to $2,763,287,237.04 is 1.27470222. Multiplying 1.27470222 by $100 million yields $127,470,222. Multiplying $50 million by 1.27470222 produces $63,735,111. The Account balance on June 30, 2007, was $119,250,233.05. Accordingly, the surcharge rate for calendar year 2008 is 1.5 percent. Monthly Compensation Base For years after 1988, section 1(i) of the Act contains a formula for determining the monthly compensation base. Under the prescribed formula, the monthly compensation base increases by approximately two-thirds of the cumulative growth in average national wages since 1984. The monthly compensation base for months in calendar year 2008 shall be equal to the greater of
(a)$600 or
(b)$600 [1 + {(A −37,800)/56,700}], where A equals the amount of the applicable base with respect to tier 1 taxes for 2008 under section 3231(e)(2) of the Internal Revenue Code of 1986. Section 1(i) further provides that if the amount so determined is not a multiple of $5, it shall be rounded to the nearest multiple of $5. The calendar year 2008 tier 1 tax base is $102,000. Subtracting $37,800 from $102,000 produces $64,200. Dividing $64,200 by $56,700 yields a ratio of 1.13227513. Adding one gives 2.13227513. Multiplying $600 by the amount 2.13227513 produces the amount of $1,279.37, which must then be rounded to $1,280. Accordingly, the monthly compensation base is determined to be $1,280 for months in calendar year 2008. Amounts Related to Changes in Monthly Compensation Base For years after 1988, sections 1(k), 2(c), 3 and 4(a-2)(i)(A) of the Act contain formulas for determining amounts related to the monthly compensation base. Under section 1(k), remuneration earned from employment covered under the Act cannot be considered subsidiary remuneration if the employee's base year compensation is less than 2.5 times the monthly compensation base for months in such base year. Multiplying 2.5 by the calendar year 2008 monthly compensation base of $1,280 produces $3,200. Accordingly, the amount determined under section 1(k) is $3,200 for calendar year 2008. Under section 2(c), the maximum amount of normal benefits paid for days of unemployment within a benefit year and the maximum amount of normal benefits paid for days of sickness within a benefit year shall not exceed an employee's compensation in the base year. In determining an employee's base year compensation, any money remuneration in a month not in excess of an amount that bears the same ratio to $775 as the monthly compensation base for that year bears to $600 shall be taken into account. The calendar year 2008 monthly compensation base is $1,280. The ratio of $1,280 to $600 is 2.13333333. Multiplying 2.13333333 by $775 produces $1,653. Accordingly, the amount determined under section 2(c) is $1,653 for months in calendar year 2008. Under section 3, an employee shall be a “qualified employee” if his/her base year compensation is not less than 2.5 times the monthly compensation base for months in such base year. Multiplying 2.5 by the calendar year 2008 monthly compensation base of $1,280 produces $3,200. Accordingly, the amount determined under section 3 is $3,200 for calendar year 2008. Under section 4(a-2)(i)(A), an employee who leaves work voluntarily without good cause is disqualified from receiving unemployment benefits until he has been paid compensation of not less than 2.5 times the monthly compensation base for months in the calendar year in which the disqualification ends. Multiplying 2.5 by the calendar year 2008 monthly compensation base of $1,280 produces $3,200. Accordingly, the amount determined under section 4(a-2)(i)(A) is $3,200 for calendar year 2008. Maximum Daily Benefit Rate Section 2(a)(3) contains a formula for determining the maximum daily benefit rate for registration periods beginning after June 30, 1989, and after each June 30 thereafter. Legislation enacted on October 9, 1996, revised the formula for indexing maximum daily benefit rates. Under the prescribed formula, the maximum daily benefit rate increases by approximately two-thirds of the cumulative growth in average national wages since 1984. The maximum daily benefit rate for registration periods beginning after June 30, 2008, shall be equal to 5 percent of the monthly compensation base for the base year immediately preceding the beginning of the benefit year. Section 2(a)(3) further provides that if the amount so computed is not a multiple of $1, it shall be rounded down to the nearest multiple of $1. The calendar year 2007 monthly compensation base is $1,230. Multiplying $1,230 by 0.05 yields $61.50, which must then be rounded down to $61. Accordingly, the maximum daily benefit rate for days of unemployment and days of sickness beginning in registration periods after June 30, 2008, is determined to be $61. Dated: November 7, 2007. By Authority of the Board. Beatrice Ezerski, Secretary to the Board. [FR Doc. E7-22267 Filed 11-13-07; 8:45 am] BILLING CODE 7905-01-P SECURITIES AND EXCHANGE COMMISSION Sunshine Act Meeting Notice is hereby given, pursuant to the provisions of the Government in the Sunshine Act, Pub. L. 94-409, that the Securities and Exchange Commission will hold an Open Meeting on Thursday, November 15, 2007 at 10 a.m., in Room L-002, the Auditorium. The subject matters of the Open Meeting will be: 1. The Commission will consider rule proposals to improve mutual fund disclosure by providing investors with a summary prospectus containing key information in plain English in a clear and concise format, and by enhancing the availability on the Internet of more detailed information to investors. The Commission also will consider whether to propose related amendments to Form N-1A. 2. The Commission will consider whether to adopt amendments to Form 20-F, Rules 1-02, 3-10 and 4-01 of Regulation S-X, Forms F-4 and S-4, and Rule 701 under the Securities Act to accept financial statements prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board without reconciliation to generally accepted accounting principles as used in the United States when contained in the filings of foreign private issuers with the Commission. 3. The Commission will consider whether to adopt amendments to its disclosure and reporting requirements under the Securities Act of 1933 and Securities Exchange Act of 1934 to expand the number of companies that qualify for scaled disclosure requirements for smaller reporting companies. Companies with less than $75 million in public equity float would qualify for the scaled requirements, and companies without a calculable public equity float would qualify if their annual revenues were below $50 million. To streamline and simplify regulation, the amendments to be considered would move the scaled disclosure requirements from Regulation S-B into Regulation S-K and would eliminate the “SB” forms. 4. The Commission will consider whether to adopt amendments to Rule 144 to shorten the holding period for the resale of restricted securities if the issuer of the securities is subject to the Exchange Act reporting requirements. The amendments also substantially reduce the restrictions applicable to resales of restricted securities by non-affiliates of both reporting and non-reporting companies. In addition, the amendments codify several staff interpretations relating to Rule 144 and revise the manner of sale requirements, volume limitations, and Form 144 filing thresholds. Finally, the Commission also will consider whether to adopt related amendments to Rule 145. 5. The Commission will consider whether to adopt amendments to Rule 12h-1 under the Exchange Act to provide two exemptions from the registration requirements of the Exchange Act for compensatory employee stock options. The first exemption would be available to issuers that are not required to file periodic reports under the Exchange Act, and the second exemption would be available to issuers that are required to file those reports because they have registered a class of security under section 12 of the Exchange Act or are required to file those reports pursuant to section 15(d) of the Exchange Act. For further information and to ascertain what, if any, matters have been added, deleted or postponed, please contact: The Office of the Secretary at
(202)551-5400. Dated: November 7, 2007. Nancy M. Morris, Secretary. [FR Doc. E7-22169 Filed 11-13-07; 8:45 am] BILLING CODE 8011-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-56761; SR-Amex-2007-65; SR-BSE-2007-45; SR-CBOE-2007-64; SR-ISE-2007-44; SR-NYSEArca-2007-65] Self-Regulatory Organizations; American Stock Exchange LLC; Boston Stock Exchange, Inc.; Chicago Board Options Exchange, Incorporated; International Securities Exchange, LLC; Order Approving Proposed Rule Changes; and NYSEArca, Inc.; Order Approving Proposed Rule Change and Amendment No. 1 Thereto Relating to the Definition of a Complex Trade November 7, 2007. I. Introduction On June 27, 2007, September 13, 2007, June 12, 2007, June 1, 2007, and July 6, 2007, the American Stock Exchange LLC (“Amex”), the Boston Stock Exchange, Inc. (“BSE”), the Chicago Board Options Exchange, Incorporated (“CBOE”), the International Securities Exchange, LLC (“ISE”), and NYSE Arca, Inc. (“NYSE Arca”) (each, an “Exchange” and, collectively, the “Exchanges”), respectively, 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 proposed rule changes to amend each of their respective rules governing the operation of the Intermarket Option Linkage (“Linkage”) to modify the definition of “complex trade” to include stock-option trades. On July 11, 2007, NYSE Arca filed Amendment No. 1 to its proposed rule change. 3 The proposed rule changes, as amended, were published for comment in the **Federal Register** on October 4, 2007. 4 The Commission received no comments on the proposed rule changes. This order approves the proposed rule changes, as amended. 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b-4. 3 Amendment No. 1 to SR-NYSEArca-2007-65 effected technical corrections to the proposed rule change. 4 Securities Exchange Act Release No. 56555 (September 27, 2007), 72 FR 56814. II. Description of the Proposals Under section 8(c)(iii)(G) of the Plan for the Purpose of Creating and Operating an Intermarket Option Linkage (“Linkage Plan”), 5 the Linkage Plan participants (“Participants”) may amend the definition of the term “complex trade” from time to time. The Participants have agreed to change the definition of “complex trade” to extend the associated trade-through liability exemption to cover certain stock-option trades. Accordingly, each of the Exchanges has submitted a proposal that would amend each such Exchange's definition of “complex trade,” set forth in the Exchange's respective rules pertaining to the Linkage, to include the execution of a stock-option order to buy or sell a stated number of units of an underlying stock or a security convertible into the underlying stock (“convertible security”) coupled with the purchase or sale of option contract(s) on the opposite side of the market representing either
(A)the same number of units of the underlying stock or convertible security, or
(B)the number of units of the underlying stock or convertible security necessary to create a delta neutral position, but in no case in a ratio greater than eight option contracts per unit of trading of the underlying stock or convertible security established for that series by the Options Clearing Corporation. 6 5 On July 28, 2000, the Commission approved a national market system plan for the purpose of creating and operating the Linkage proposed by Amex, CBOE, and ISE. *See* Securities Exchange Act Release No. 43086 (July 28, 2000), 65 FR 48023 (August 4, 2000). Subsequently, the Philadelphia Stock Exchange, Inc. (“Phlx”), Pacific Exchange, Inc. (n/k/a NYSE Arca, Inc.), and BSE joined the Linkage Plan. *See* Securities Exchange Act Release Nos. 43573 (November 16, 2000), 65 FR 70851 (November 28, 2000); 43574 (November 16, 2000), 65 FR 70850 (November 28, 2000); and 49198 (February 5, 2004), 69 FR 7029 (February 12, 2004). 6 The Exchanges propose to amend their respective rules that define “complex trade” for Linkage purposes, namely Amex Rule 940(b)(3), Boston Options Exchange Rule Chapter XII, Section 1(c), CBOE Rule 6.80(4), ISE Rule 1900(3), and NYSE Arca Rule 6.92(a)(4). The Phlx filed a proposed rule change with the Commission to amend its definitions of “synthetic option” and “complex trade” to conform such definitions with the related “stock option” and “complex trade” definitions of the Exchanges. *See* Securities Exchange Act Release No. 56608 (October 3, 2007), 72 FR 57985 (October 11, 2007) (SR-Phlx-2007-40). The Commission is approving proposed rule change SR-Phlx-2007-40 in a separate order today. *See* Securities Exchange Act Release No. 56760 (November 7, 2007). III. Discussion After careful review, the Commission finds that the proposed rule changes, as amended, are consistent with the requirements of the Act and the rules and regulations thereunder applicable to national securities exchanges. 7 In particular, the Commission finds that the proposed rule changes, as amended, are consistent with the provisions of section 6(b)(5) of the Act, 8 which requires, among other things, that national securities exchanges' rules be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to remove impediments to and to perfect the mechanism of a free and open market and a national market system and, in general, to protect investors and the public interest. 7 In approving these proposals, the Commission has considered the proposed rules' impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). 8 15 U.S.C. 78f(b)(5). The Commission believes that by amending the definition of “complex trade” to include certain stock-option orders as described above, and by providing a consistent definition of “complex trade” in the rules of the Exchanges, the proposals may facilitate the execution of such complex orders. IV. Conclusion *It is therefore ordered,* pursuant to section 19(b)(2) of the Act, 9 that the proposed rule changes (SR-Amex-2007-65; SR-BSE-2007-45; SR-CBOE-2007-64; SR-ISE-2007-44; SR-NYSEArca-2007-65), as amended, are approved. 9 15 U.S.C. 78s(b)(2). For the Commission, by the Division of Market Regulation, pursuant to delegated authority. 10 10 17 CFR 200.30-3(a)(12). Florence E. Harmon, Deputy Secretary. [FR Doc. E7-22165 Filed 11-13-07; 8:45 am] BILLING CODE 8011-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-56764; File No. SR-Amex-2007-113] Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Delete Previously Approved Rules Relating To a New Class of Off-Floor Market Maker Called Designated Amex Remote Traders November 7, 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 October 25, 2007, the American Stock Exchange LLC (“Amex” or “Exchange”) filed with the Securities and Exchange Commission the proposed rule change as described in Items I and II below, which Items have been substantially prepared by the Exchange. The Exchange filed the proposal as a “non-controversial” proposed rule change pursuant to section 19(b)(3)(A)(iii) of the Act 3 and Rule 19b-4(f)(6) thereunder. 4 The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b-4. 3 15 U.S.C. 78s(b)(3)(A)(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 The Amex proposes to delete the recently approved changes to its rules establishing a new class of off-floor market makers known as Designated Amex Remote Traders, or “DARTs.” 5 5 *See* Securities Exchange Act Release No. 56446 (Sept. 17, 2007), 72 FR 54303 (Sept. 24, 2007) (approving SR-Amex-2007-85). The text of the proposed rule change is available on the Amex's Web site at *http://www.amex.com,* the Amex'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, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change
(1)Purpose The Exchange proposes to delete the recently approved changes to its rules establishing a new class of off-floor market makers known as Designated Amex Remote Traders, or “DARTs.” The Exchange plans to refile the proposed rule change with some revisions and subject to a new comment period. The Exchange is taking this action to facilitate the Commission's addressing, to the extent still germane, the substance of comments it previously received on the original filing. 6 6 *See* E-mail from William Love, Vice President and Associate General Counsel, Amex, to Michael Gaw, Assistant Director, and Sonia Trocchio, Special Counsel, Division of Market Regulation, Commission (Nov. 5, 2007).
(2)Statutory Basis The proposed rule change is consistent with section 6(b) of the Act, 7 in general, and furthers the objectives of section 6(b)(5), 8 in particular, in that it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and open market and a national market system and, in general, to protect investors and the public interest. 7 15 U.S.C. 78f(b). 8 15 U.S.C. 78f(b)(5). B. Self-Regulatory Organization's Statement on Burden on Competition The proposed rule change does not impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others No written comments were solicited or received with respect to the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing rule does not
(i)significantly affect the protection of investors or the public interest;
(ii)impose any significant burden on competition; and
(iii)become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate if consistent with the protection of investors and the public interest, it has become effective pursuant to section 19(b)(3)(A) of the Act 9 and Rule 19b-4(f)(6) thereunder. 10 9 15 U.S.C. 78s(b)(3)(a). 10 17 CFR 240.19b-4(f)(6). In addition, the self-regulatory organization must give the Commission written notice of its intent to file the proposed rule change, along with a brief description and text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. The Commission has determined to waive the five-day pre-filing notice period in this case. The Exchange has requested that the Commission waive the 30-day pre-operative period, so that the proposal may become operative as of the date of filing. The Commission hereby grants the Exchange's request. The Commission believes that such action is consistent with the protection of investors and the public interest, because the Exchange will be able to submit the revised DART proposal without delay and interested parties will have the benefit of a notice-and-comment period on the new proposal. 11 11 For purposes only of waiving the 30-day operative delay of this proposal, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. *See* 15 U.S.C. 78c(f). IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission's Internet comment form ( *http://www.sec.gov/rules/sro.shtml* ); or • Send an e-mail to *rule-comments@sec.gov.* Please include File Number SR-Amex-2007-113 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-2007-113. 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 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-2007-113 and should be submitted on or before December 5, 2007. For the Commission, by the Division of Market Regulation, pursuant to delegated authority. 12 12 17 CFR 200.30-3(a)(12). Florence E. Harmon, Deputy Secretary. [FR Doc. E7-22180 Filed 11-13-07; 8:45 am] BILLING CODE 8011-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-56762; File No. SR-CBOE-2007-129] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing of Proposed Rule Change Regarding the CBSX Floor Post November 7, 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 November 2, 2007, the Chicago Board Options Exchange, Incorporated (“CBOE” or “Exchange”) filed with the Securities and Exchange Commission (“Commission”) the proposed rule change as described in Items I, II, and III below, which Items have been substantially prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b-4. I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to change CBOE Stock Exchange (“CBSX”) rules relating to the CBSX Floor Post. The text of the proposed rule change is available at CBOE's principal office, the Commission's Public Reference Room, and *http://www.cboe.org/legal* . II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, CBOE included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose CBSX is the Exchange's stock trading facility. It is an all-electronic trading platform. In connection with the establishment of CBSX, the Exchange created a space on the CBOE trading floor (apart from the equity option trading posts) to allow for in-person price discovery. All CBSX Designated Primary Market-Makers (“DPMs”) currently are required to maintain personnel at this post (the “Floor Post”) to respond to price discovery inquiries from brokers. Any resulting orders/trades are entered and processed electronically. There is no open-outcry trading on CBSX. The proposed rule change has two purposes. First, the filing proposes to modify Rule 51.12 to state that CBSX “may” maintain a Floor Post. Currently, Rule 51.12 contemplates that CBSX “will” maintain a Floor Post. Although the Exchange intends to continue to maintain the Floor Post, this change will provide the flexibility to remove the Floor Post if at a later time the Exchange deems such action prudent. The second change is to eliminate the requirement that CBSX DPMs maintain personnel at the Floor Post. As proposed, it would be optional for CBSX DPM firms to staff the Floor Post. Certain CBSX DPMs have requested this change, noting that it would allow them to more efficiently allocate resources. The Exchange believes that a change to this requirement would have absolutely no adverse impact to trading on CBSX. 2. Statutory Basis CBOE believes the proposed rule change is consistent with section 6(b) of the Act 3 in general, and furthers the objectives of section 6(b)(5) of the Act 4 in particular, in that 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 to protect investors and the public interest. 3 15 U.S.C. 78f(b). 4 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 No written comments were solicited or received with respect to the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Within 35 days of the date of publication of this notice in the **Federal Register** or within such longer period
(i)as the Commission may designate up to 90 days of such date if it finds such longer period to be appropriate and publishes its reasons for so finding, or
(ii)as to which the Exchange consents, the Commission will:
(A)By order approve the proposed rule change, or
(B)institute proceedings to determine whether the proposed rule change should be disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission's Internet comment form ( *http://www.sec.gov/rules/sro.shtml* ); or • Send an e-mail to *rule-comments@sec.gov.* Please include File Number SR-CBOE-2007-129 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-2007-129. 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 the filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-CBOE-2007-129 and should be submitted on or before December 5, 2007. For the Commission, by the Division of Market Regulation, pursuant to delegated authority. 5 Florence E. Harmon, Deputy Secretary. 5 17 CFR 200.30-3(a)(12). [FR Doc. E7-22166 Filed 11-13-07; 8:45 am] BILLING CODE 8011-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-56751; File No. SR-FINRA-2007-019] Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Order Granting Accelerated Approval of Proposed Rule Change Relating to NYSE Rule 2 November 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 October 25, 2007, the Financial Industry Regulatory Authority, Inc. (“FINRA”) (f/k/a National Association of Securities Dealers, Inc. (“NASD”)) filed with the Securities and Exchange Commission (“SEC” or “Commission”) the proposed rule change as described in Items I and II 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 and is simultaneously approving the proposal on an accelerated basis. 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 the Financial Industry Regulatory Authority, Inc., or FINRA, in connection with the consolidation of the member firm regulatory functions of NASD and NYSE Regulation, Inc. (“NYSE Regulation”). *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 is proposing to amend the definition of “member organization” in FINRA's NYSE Rule 2(b) 4 to reflect that FINRA membership is a condition of being an NYSE member organization. The proposed rule change conforms FINRA's NYSE Rule 2(b) to a recently approved rule change by the NYSE to its version of Rule 2(b). 5 The text of the proposed rule change is available at FINRA, the Commission's Public Reference Room, and *http://www.finra.org* . 4 FINRA has incorporated into its rulebook certain rules of the New York Stock Exchange, LLC (“NYSE”), including NYSE Rule 2. This incorporated NYSE rule applies solely to those members of FINRA that are also members of NYSE on or after July 30, 2007 (“Dual Members”), until such time as FINRA adopts a consolidated rulebook applicable to all of its members. The incorporated NYSE rules apply to the same categories of persons to which they applied as of July 30, 2007. In applying the incorporated NYSE rules to Dual Members, FINRA also has incorporated the related interpretive positions set forth in the NYSE Rule Interpretations Handbook and NYSE Information Memos. 5 *See* Securities Exchange Act Release No. 56654 (October 12, 2007), 72 FR 59129 (October 18, 2007) (Order Approving Proposed Rule Change Relating to NYSE Rule 2; File No. SR-NYSE-2007-67) (“Release No. 34-56654”). 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 III 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 On July 30, 2007, NASD and NYSE Regulation consolidated their member firm regulation operations into a combined organization, FINRA. To enable FINRA to meet its new regulatory responsibilities, the NYSE amended NYSE Rule 2(b) to require FINRA membership as a condition of being an NYSE member organization. The proposed rule change would make a conforming change to FINRA's NYSE Rule 2(b). 6 6 Pursuant to Rule 17d-2 under the Act, 17 CFR 240.17d-2, NASD, NYSE, and NYSE Regulation, Inc. entered into an agreement (“Agreement”) to reduce regulatory duplication for firms that are Dual Members by allocating certain regulatory responsibilities for selected NYSE rules from NYSE Regulation to FINRA. The Agreement includes a list of all of those rules (“Common Rules”) for which FINRA has assumed examination, enforcement and surveillance responsibilities under the Agreement relating to compliance by Dual Members to the extent that such responsibilities involve member firm regulation. *See* Securities Exchange Act Release No. 56148 (July 26, 2007) 72 FR 42146 (August 1, 2007) (Notice of Filing and Order Approving and Declaring Effective a Plan for the Allocation of Regulatory Responsibilities). The Common Rules are the same NYSE rules that FINRA has incorporated into its rulebook. *See* Securities Exchange Act Release No. 56147 (July 26, 2007), 72 FR 42166 (August 1, 2007) (Notice of Filing and Order Granting Accelerated Approval of Proposed Rule Change to Incorporate Certain NYSE Rules Relating to Member Firm Conduct) (File No. SR-NASD-2007-054). Paragraph 2(b) of the Agreement sets forth procedures regarding proposed changes by either NYSE or FINRA to the substance of any of the Common Rules. The effective date of the proposed rule change is October 12, 2007, which is the effective date of the NYSE's identical amendments to NYSE Rule 2(b), as recently approved by the Commission. 7 7 *See* Release No. 34-56654, *supra* note 5. The Commission notes that, under the recent amendment to NYSE Rule 2(b), NYSE-only member organizations are provided a 60-day grace period within which they must apply for and be approved for FINRA membership. 2. Statutory Basis FINRA believes that the proposed rule change is consistent with the provisions of section 15A(b)(6) of the Act, 8 which requires, among other things, that FINRA rules must be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, and, in general, to protect investors and the public interest. FINRA believes that the proposed rule change serves to further the consolidation of the member firm regulation functions of NASD and NYSE Regulation. 8 15 U.S.C. 78o-3(b)(6). B. Self-Regulatory Organization's Statement on Burden on Competition FINRA does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others Written comments were neither solicited nor received. III. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission's Internet comment form ( *http://www.sec.gov/rules/sro.shtml* ); or • Send an e-mail to *rule-comments@sec.gov* . Please include File Number SR-FINRA-2007-019 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-FINRA-2007-019. 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 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-FINRA-2007-019 and should be submitted on or before December 5, 2007. IV. Commission Findings After careful consideration, the Commission finds that the proposed rule change is consistent with the Act and the rules and regulations thereunder applicable to a national securities association. 9 Specifically, the Commission believes that the proposed rule change is consistent with section 15A(b)(6) of the Act 10 in that it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, and, in general, to protect investors and the public interest. 9 In approving this proposed rule change, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). 10 15 U.S.C. 78 *o* -3(b)(6). The proposed rule change amends the version of NYSE Rule 2(b) that was incorporated into FINRA's rulebook as part of the consolidation of the member firm regulatory consolidation between NASD and NYSE. The Commission notes that the proposed rule change would make FINRA's NYSE Rule 2(b) identical to the version of NYSE Rule 2(b) in the NYSE rulebook that recently was amended and approved by the Commission. 11 In addition, the Commission believes that the proposed rule change comports with the provision of the 17d-2 Agreement, as approved by the Commission, in which FINRA and NYSE agreed to promptly propose conforming changes, absent a disagreement about the substance of a proposed rule change to one of the Common Rules, to ensure that such rules continue to be Common Rules under the Agreement. In this regard, the Commission believes that it is appropriate for the proposed rule to be effective retroactively as of October 12, 2007, which is the date NYSE's amendment to NYSE Rule 2(b) was approved by the Commission. 12 11 *See* Release No. 34-56654, *supra* note 5. 12 *Id.* The Commission finds good cause to approve the proposal prior to the thirtieth day after the proposal was published for comment in the **Federal Register** . This approval allows the proposed rule change to take effect without delay. The NYSE's proposed revision to NYSE Rule 2(b) was published for comment and approved by the Commission. 13 Therefore, interested persons were provided the opportunity to submit comments on rule text that is identical to FINRA's proposal. For this reason, the Commission finds good cause, consistent with section 19(b)(2) of the Act, to grant accelerated approval to the proposed rule change. 13 *Id.* V. Conclusion *It is therefore ordered* , pursuant to section 19(b)(2) of the Act, that the proposed rule change (SR-FINRA-2007-019) is hereby approved on an accelerated basis. 14 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Market Regulation, pursuant to delegated authority. 14 Florence E. Harmon, Deputy Secretary. [FR Doc. E7-22161 Filed 11-13-07; 8:45 am] BILLING CODE 8011-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-56752; File No. SR-NASD-2007-043] Self-Regulatory Organizations; National Association of Securities Dealers, Inc. (n/k/a Financial Industry Regulatory Authority, Inc. (“FINRA”); Notice of Filing of Proposed Rule Change and Amendment No. 1 Thereto To Amend NASD Rule 7001C To Increase Percentage of Market Data Revenue Shared With NASD/NSX TRF Participants November 6, 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 June 29, 2007, the National Association of Securities Dealers, Inc. (“NASD”) filed with the Securities and Exchange Commission (“Commission”) the proposed rule change as described in Items I, II and III below, which Items have been prepared by NASD. On October 29, 2007, Financial Industry Regulatory Authority, Inc. (“FINRA”) filed Amendment No. 1 to the proposed rule change. 3 The Commission is publishing this notice to solicit comments on the proposed rule change, as amended, from interested persons. 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b-4. 3 Effective July 30, 2007, FINRA was formed through the consolidation of NASD and the member regulatory functions of NYSE Regulation. *See* Securities Exchange Act Release No. 56146 (July 26, 2007), 72 FR 42190 (August 1, 2007). Accordingly, the NASD/NSX TRF is now doing business as the FINRA/NSX TRF. The formal name change of each of FINRA's Trade Reporting Facilities is pending and once completed, FINRA will file a separate proposed rule change to reflect those changes in the Manual. In Amendment No. 1, FINRA made certain changes to the original proposed rule change of June 29, 2007, including to:
(i)*Propose* to share 75%, rather than 100% as proposed in the original filing, of market data revenue with NASD/NSX TRF participants, and
(ii)revise the Self-Regulatory Organization's Statement on Burden on Competition. I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change FINRA proposes to amend NASD Rule 7001C (Securities Transaction Credit) to increase the percentage of New York Stock Exchange (“Tape A”), American Stock Exchange (“Tape B”) and Nasdaq Exchange (“Tape C”) revenue shared with FINRA members reporting trades to the NASD/NSX Trade Reporting Facility (“NASD/NSX TRF”). The text of the proposed rule change is available at FINRA, *http://www.finra.org,* and the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, FINRA included statements concerning the purpose of and basis for the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. 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 On November 6, 2006, the Commission approved the establishment of the NASD/NSX TRF, 4 and the NASD/NSX TRF commenced operation on November 27, 2006. The NASD/NSX TRF provides FINRA members another mechanism for reporting locked-in transactions in exchange-listed securities effected otherwise than on an exchange. In connection with the establishment of the NASD/NSX TRF, FINRA and National Stock Exchange, Inc. (“NSX”) entered into the Limited Liability Company Agreement of NASD/NSX Trade Reporting Facility LLC (“Agreement”). Under the Agreement, FINRA, the “SRO Member,” has sole regulatory responsibility for the NASD/NSX TRF. NSX, the “Business Member,” is primarily responsible for the management of the NASD/NSX TRF's business affairs to the extent those activities are not inconsistent with the regulatory and oversight functions of FINRA. Additionally, the Business Member is obligated to pay the cost of regulation and is entitled to the profits and losses, if any, derived from the operation of the NASD/NSX TRF. 4 *See* Securities Exchange Act Release No. 54715 (November 6, 2006), 71 FR 66354 (November 14, 2006) (SR-NASD-2006-108) (approval order). Pursuant to NASD Rule 7001C, FINRA members reporting trades in Tape A, Tape B and Tape C securities to the NASD/NSX TRF currently receive a 50% *pro rata* credit on gross market data revenue earned by the NASD/NSX TRF. “Gross revenue” is the revenue received by the NASD/NSX TRF from the three tape associations after the tape associations deduct allocated support costs and unincorporated business costs. Proposal To Increase Securities Transaction Credit FINRA proposes to amend Rule 7001C to increase from 50% to 75% the percentage of market data revenue shared with members under the securities transaction credit program. Thus, FINRA members reporting trades in Tape A, Tape B and Tape C stocks to the NASD/NSX TRF will receive a 75% *pro rata* credit on gross market data revenue earned by the NASD/NSX TRF. NSX, as the Business Member under the Agreement, has determined that the proposed increase in the percentage of market data revenue shared with NASD/NSX TRF participants is necessary for competitive reasons. NSX believes that, particularly in light of the fact that FINRA has filed a proposed rule change whereby the NASD/NYSE Trade Reporting Facility (“NASD/NYSE TRF”) would share 100% of market data revenue with its participants, 5 competitive pricing is crucial to the NASD/NSX TRF's business. NSX has indicated that because there are currently no fees for reporting trades to the NASD/NSX TRF, NSX will fund regulatory costs associated with the NASD/NSX TRF from NSX general revenues. 5 *See* SR-NASD-2007-031 at *http://www.finra.org/RulesRegulation/RuleFilings/2007RuleFilings/P019027.* FINRA is proposing that the effective date of the proposed rule change shall be retroactive to April 1, 2007, the start of the second calendar quarter of 2007. 2. Statutory Basis FINRA believes that the proposed rule change is consistent with the provisions of section 15A of the Act, 6 in general, and with section 15A(b)(5) of the Act, 7 in particular, which requires, among other things, that FINRA rules provide for the equitable allocation of reasonable dues, fees and other charges among members and issuers and other persons using any facility or system that FINRA operates or controls. FINRA believes that the proposed rule change is a reasonable and equitable credit structure in that it will be applied uniformly among members that participate in the NASD/NSX TRF and NSX has indicated that all regulatory costs owed by NSX as the Business Member related to the NASD/NSX TRF will be funded by NSX general revenues. 6 15 U.S.C. 78 *o* -3. 7 15 U.S.C. 78 *o* -3(b)(5). B. Self-Regulatory Organization's Statement on Burden on Competition FINRA does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others Written comments were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action 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 No. SR-ASD-2007-043 on the subject line. Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, Station Place, 100 F Street, NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-NASD-2007-043. 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 a.m. and 3 p.m. 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-2007-043 and should be submitted on or before December 5, 2007. 8 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Market Regulation, pursuant to delegated authority. 8 Florence E. Harmon, Deputy Secretary. [FR Doc. E7-22162 Filed 11-13-07; 8:45 am] BILLING CODE 8011-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-56754; File No. SR-NASD-2007-031] Self-Regulatory Organizations; National Association of Securities Dealers, Inc. (n/k/a Financial Industry Regulatory Authority, Inc. (“FINRA”); Notice of Filing of Proposed Rule Change and Amendment Nos. 1 and 2 Thereto To Amend NASD Rule 7001E To Increase Percentage of Market Data Revenue Shared With NASD/NYSE TRF Participants November 6, 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 April 24, 2007, the National Association of Securities Dealers, Inc. (“NASD”) filed with the Securities and Exchange Commission (“Commission”) the proposed rule change as described in Items I, II and III below, which Items have been prepared by NASD. On June 1, 2007, NASD filed Amendment No. 1. On October 29, 2007, FINRA filed Amendment No. 2 to the proposed rule change. 3 The Commission is publishing this notice to solicit comments on the proposed rule change, as modified by Amendment No. 2 only, 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 NASD Rule 7001E (Securities Transaction Credit) to increase to 100% the percentage of New York Stock Exchange (“Tape A”), American Stock Exchange (“Tape B”) and Nasdaq Exchange (“Tape C”) revenue shared with FINRA members reporting trades to the NASD/NYSE Trade Reporting Facility (“NASD/NYSE TRF”). The text of the proposed rule change is available at FINRA, *www.finra.org,* and the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, FINRA included statements concerning the purpose of and basis for the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. 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 On February 1, 2007, NASD filed for immediate effectiveness a proposed rule change relating to the establishment of the NASD/NYSE TRF. 4 The NASD/NYSE TRF provides NASD members another mechanism for reporting locked-in transactions in exchange-listed securities effected otherwise than on an exchange. 4 *See* Securities Exchange Act Release No. 55325 (February 21, 2007), 72 FR 8820 (February 27, 2007) (SR-NASD-2007-011). The NASD/NYSE TRF commenced operation on April 18, 2007. In connection with the establishment of the NASD/NYSE TRF, NASD and NYSE Market, Inc. (“NYSE”) entered into the Limited Liability Company Agreement of NASD/NYSE Trade Reporting Facility LLC (“NASD/NYSE TRF LLC Agreement”), a copy of which appears in the NASD Manual. Under the NASD/NYSE TRF LLC Agreement, NASD, the “SRO Member,” has sole regulatory responsibility for the NASD/NYSE TRF. NYSE, the “Business Member,” is primarily responsible for the management of the NASD/NYSE TRF's business affairs to the extent those activities are not inconsistent with the regulatory and oversight functions of FINRA. Additionally, the Business Member is obligated to pay the cost of regulation and is entitled to the profits and losses, if any, derived from the operation of the NASD/NYSE TRF. On March 21, 2007, NASD filed a proposed rule change for immediate effectiveness to adopt a new NASD Rule 7000E Series relating to fees and credits applicable to the NASD/NYSE TRF. 5 Pursuant to NASD Rule 7001E, FINRA members reporting trades in Tape A, Tape B and Tape C securities to the NASD/NYSE TRF currently receive a 50% *pro rata* credit on gross market data revenue earned by the NASD/NYSE TRF. “Gross revenue” is the revenue received by the NASD/NYSE TRF from the three tape associations after the tape associations deduct allocated support costs and unincorporated business costs. 5 *See* Securities Exchange Act Release No. 55526 (March 26, 2007), 72 FR 15739 (April 2, 2007) (SR-NASD-2007-025). Proposal To Increase Securities Transaction Credit FINRA is proposing to amend Rule 7001E to increase from 50% to 100% the percentage of market data revenue shared with members under the securities transaction credit program. Thus, FINRA members reporting trades in Tape A, Tape B and Tape C stocks to the NASD/NYSE TRF will receive a 100% pro rata credit on gross market data revenue earned by the NASD/NYSE TRF. The NYSE, as the Business Member under the NASD/NYSE TRF LLC Agreement, has determined that the proposed increase in the percentage of market data revenue shared with NASD/NYSE TRF participants is necessary for competitive reasons. The NYSE believes that, as a new and late entrant to the OTC trade reporting arena, competitive pricing can differentiate its product offering. Additionally, the proposed increase would be consistent with the position of the NYSE that the economic benefits of off-exchange trades should not accrue to exchanges. 6 The NYSE has indicated that because there are currently no fees for reporting trades to the NASD/NYSE TRF, the NYSE will fund regulatory costs associated with the NASD/NYSE TRF from NYSE general revenues. 6 *See* letter dated April 27, 2006 from Mr. John A. Thain, Chief Executive Officer, NYSE Group, to Chairman Cox, SEC. In that letter, the NYSE also stated that “Since dealer-internalized trades do not contribute directly to price discovery, the ideal resolution would be to remove such trades from the revenue sharing formula.” FINRA is proposing that the effective date of the proposed rule change shall be retroactive to April 18, 2007, the date on which the NASD/NYSE TRF commenced operation. 2. Statutory Basis FINRA believes that the proposed rule change is consistent with the provisions of section 15A of the Act, 7 in general, and with section 15A(b)(5) of the Act, 8 in particular, which requires, among other things, that FINRA rules provide for the equitable allocation of reasonable dues, fees and other charges among members and issuers and other persons using any facility or system that FINRA operates or controls. FINRA believes that the proposed rule change is a reasonable and equitable credit structure in that it will be applied uniformly among members that participate in the NASD/NYSE TRF and that the NYSE has indicated that all regulatory costs owed by the NYSE as the Business Member related to the NASD/NYSE TRF will be funded by NYSE general revenues. 7 15 U.S.C. 78 *o* -3. 8 15 U.S.C. 78 *o* -3(b)(5). B. Self-Regulatory Organization's Statement on Burden on Competition FINRA does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others Written comments were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action 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 No. SR-NASD-2007-031 on the subject line. Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, Station Place, 100 F Street, NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-NASD-2007-031. 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 a.m. and 3 p.m. 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-2007-031 and should be submitted on or before December 5, 2007. 9 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Market Regulation, pursuant to delegated authority. 9 Florence E. Harmon, Deputy Secretary. [FR Doc. E7-22163 Filed 11-13-07; 8:45 am] BILLING CODE 8011-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-56759; File No. SR-NASDAQ-2007-069] Self-Regulatory Organization; The NASDAQ Stock Market LLC; Order Approving Proposed Rule Change and Amendment No. 1 Thereto To Amend Its Rule Governing the Relation of a Nasdaq Market Maker's Quotations to the Prevailing Market November 7, 2007. On August 1, 2007, The NASDAQ Stock Market LLC (“Nasdaq”) 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 eliminate a requirement governing the relation of Nasdaq market makers' quotations to the prevailing market. On September 19, 2007, Nasdaq filed Amendment No. 1 to the proposed rule change. The proposed rule change, as amended, was published for comment in the **Federal Register** on October 5, 2007. 3 The Commission received no comments regarding the proposal, and is thereby approving the proposed rule change as modified by Amendment No. 1. 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b-4. 3 *See* Securities Exchange Act Release No. 56586 (October 1, 2007), 72 FR 57085. The Commission finds that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange. 4 In particular, the Commission finds that the proposed rule change is consistent with section 6(b)(5) of the Act, 5 which requires that the rules of an exchange be designed to promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and open market and a national securities system, and, in general, to protect investors and the public interest. 4 In approving this proposed rule change, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. *See* 15 U.S.C. 78c(f). 5 15 U.S.C. 78f(b)(5). Nasdaq proposes to amend Rule 4613(c) to eliminate the requirement that a Nasdaq market maker's quotations be “reasonably related to the prevailing market.” The requirement was adopted in 1987, at which time Nasdaq was part of the National Association of Securities Dealers, Inc. and operated an over-the-counter market with competing dealers. Nasdaq states that the requirement is no longer meaningful, given the regulatory changes, as well as the changes Nasdaq has made to the way its market operates in the last 20 years. However, for each security in which they are registered, market makers would continue to be required to be willing to buy and sell the security for their own account on a continuous basis and at all times maintain a two-sided, attributable quotation that is displayed in the Nasdaq Quotation Montage. The Commission believes that the proposal is reasonable in that it mirrors the market maker definition set forth in section 3(a)(38) of the Act 6 and is consistent with market maker obligations contained in rules of other national securities exchanges. 7 Furthermore, the Commission notes that Nasdaq has represented that it will carefully monitor the performance of market makers to determine if the proposal has any impact on the extent to which market makers quote at or near the inside market. 8 6 15 U.S.C. 78c(a)(38). 7 *See, e.g.* , NYSE Arca Rule 7.23. 8 In addition, the Commission notes that this rule change does not affect the market maker exception from the “locate” requirement of Regulation SHO under the Act. Rule 203(b)(2)(iii) of Regulation SHO provides an exception from the “locate” requirement for short sales executed by market makers, as defined in section 3(a)(38) of the Act, *but only in connection with bona-fide market making activities* . To qualify for Regulation SHO's “locate” exception, a broker-dealer must be both a market maker in the specific security *and* engaged in bona fide market making at the time of the short sale for which the broker-dealer is claiming the exception. Thus, a broker-dealer's general status as a market maker or its status as a market maker in the security being sold short does not qualify it for the exception. Further, Regulation SHO's “locate” requirement applies on a transaction-by-transaction basis and, therefore, a market maker must determine whether it is engaged in bona fide market making for each short sale transaction. See Securities Exchange Act Release No. 50103 (July 28, 2004), 69 FR 48008 (August 6, 2004). *It is therefore ordered* , pursuant to section 19(b)(2) of the Act, 9 that the proposed rule change (SR-NASDAQ-2007-069), as modified by Amendment No. 1, be, and it hereby is, approved. 9 15 U.S.C. 78s(b)(2). For the Commission, by the Division of Market Regulation, pursuant to delegated authority. 10 10 17 CFR 200.30-3(a)(12). Florence E. Harmon, Deputy Secretary. [FR Doc. E7-22164 Filed 11-13-07; 8:45 am] BILLING CODE 8011-01-P SECURITIES AND EXCHANGE COMMISSION [Release No. 34-56763; File No. SR-NYSEArca-2007-81] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Order Granting Accelerated Approval of Proposed Rule Change To Trade Shares of Funds of the Rydex ETF Trust Pursuant to Unlisted Trading Privileges November 7, 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 2, 2007, NYSE Arca, Inc. (the “Exchange”), through its wholly-owned subsidiary, NYSE Arca Equities, Inc. (“NYSE Arca Equities”), filed with the Securities and Exchange Commission (“Commission”) the proposed rule change as described in Items I and II below, which Items have been substantially prepared by the Exchange. 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, through NYSE Arca Equities, proposes to trade shares (“Shares”) of 45 funds of the Rydex ETF Trust (“Trust”) based on numerous domestic indexes pursuant to unlisted trading privileges (“UTP”). 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 III below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose Under NYSE Arca Equities Rule 5.2(j)(3), which permits the trading of Shares either by listing or pursuant to UTP, 3 the Exchange proposes to trade pursuant to UTP shares of 45 funds of the Trust that are designated as Rydex Leveraged Funds (the “Leveraged Funds”), Rydex Inverse Funds (the “Inverse Funds”), and Rydex Leveraged Inverse Funds (the “Leveraged Inverse Funds” and together with the Leveraged Funds and Inverse Funds, the “Funds”). The Commission has approved the listing and trading of the Shares on the American Stock Exchange LLC (“Amex”). 4 Each of the Funds will have a distinct investment objective by attempting, on a daily basis, to correspond to a specified multiple of the performance, or the inverse performance, of a particular equity securities index as described in the Amex Notice. A detailed discussion of the investment objective of each of the Funds; the portfolio management methodology for each of the Funds, including specific information about the portfolio composition for each Fund ( *e.g.* , the “IIV File” and portfolio composition file or “PCF”); the investment techniques for each of the Funds; the creation and redemption of baskets of Shares for each of the Funds; and the calculation methodology of the net asset value (“NAV”) for each of the Funds, among other things, can be found in the Amex Notice. 3 In October 1999, the Commission approved NYSE Arca Equities Rule 5.2(j)(3), which sets forth the rules related to listing and trading criteria for “Investment Company Units”. *See* Securities Exchange Act Release No. 41983 (October 6, 1999), 64 FR 56008 (October 15, 1999) (SR-PCX-1998-29). In July 2001, the Commission also approved the Exchange's generic listing standards for listing and trading, or the trading pursuant to UTP, of Investment Company Units under NYSE Arca Equities Rule 5.2(j)(3). *See* Securities Exchange Act Release No. 44551 (July 12, 2001), 66 FR 37716-01 (July 19, 2001) (SR-PCX-2001-14). The definition of an Investment Company Unit is set forth in NYSE Arca Equities Rule 5.1(b)(15), which provides that an Investment Company Unit is a security representing an interest in a registered investment company that could be organized as a unit investment trust, an open-end management investment company, or a similar entity. 4 *See* Securities Exchange Act Release No. 56713 (October 29, 2007) (SR-Amex-2007-74) (granting approval to list and trade the Shares on Amex) (“Amex Approval Order”); Securities Exchange Act Release No. 56218 (August 7, 2007), 72 FR 45469 (August 14, 2007) (SR-Amex-2007-74) (providing notice of Amex's proposal to list and trade the Shares (“Amex Notice”)). The Funds will be based on the following benchmark indexes:
(1)The S&P 500 Index;
(2)the S&P MidCap 400 Index;
(3)the S&P Small Cap 600 Index;
(4)the Russell 1000 Index;
(5)the Russell 2000 Index;
(6)the Russell 3000 Index;
(7)the S&P 500 Consumer Discretionary Index;
(8)the S&P 500 Consumer Staples Index;
(9)the S&P 500 Energy Index;
(10)the S&P 500 Financials Index;
(11)the S&P 500 HealthCare Index;
(12)the S&P 500 Industrials Index;
(13)the S&P 500 Information Technology Index;
(14)the S&P 500 Materials Index; and
(15)the S&P 500 Utilities Index (each index individually referred to as an “Underlying Index,” and all Underlying Indexes collectively referred to as the “Underlying Indexes”). As noted in the Amex Approval Order, quotations and last-sale information for the Shares will be disseminated through the facilities of the Consolidated Tape Association (“CT”). In addition, the NAV per Share of each Fund will be calculated and disseminated daily. 5 To provide updated information relating to each Fund for use by investors, professionals, and persons wishing to create or redeem Shares, Amex will disseminate through CT and CQ High Speed Lines information with respect to an Indicative Intra-Day Value (“IIV”) at least every 15 seconds throughout Amex's trading day (as calculated by Amex), 6 market value of a Share for each Fund, recent NAV for each Fund, number of Shares outstanding for each Fund, and the estimated cash amount and total cash amount per Creation Unit. 7 Amex will also make available on its Web site daily trading volume, the closing prices, the NAV, and the final dividend amounts to be paid for each Fund. 5 *See* Amex Notice, 72 FR at 45477. 6 A detailed discussion of the calculation methodology of the IIV for each of the Funds can be found in the Amex Notice. *See* Amex Notice, 72 FR at 45477. 7 Each Fund will issue and redeem Shares only in aggregations of at least 50,000, each aggregation, a “Creation Unit.” *See* Amex Notice, 72 FR at 45474. In addition, the value of each Underlying Index will be updated intra-day on a real-time basis as its individual component securities change in price. These intra-day values of each Underlying Index will be disseminated at least every 15 seconds throughout the trading day by Amex or another organization authorized by the relevant Underlying Index provider. Several independent data vendors also package and disseminate Underlying Index data in various value-added formats (including vendors displaying both securities and Underlying Index levels and vendors displaying Underlying Index levels only). The Trust's Web site ( *http://www.rydexinvestments.com* ) will contain the following information for each Fund's Shares:
(1)The prior business day's closing NAV, the reported closing price, and a calculation of the premium or discount of such price in relation to the closing NAV;
(2)data for a period covering at least the four previous calendar quarters (or the life of a Fund, if shorter) indicating how frequently each Fund's Shares traded at a premium or discount to NAV based on the daily closing price and the closing NAV, and the magnitude of such premiums and discounts;
(3)its prospectus and product description; and
(4)other quantitative information, such as daily trading volume. The prospectus and/or product description for each Fund will inform investors that the Trust's Web site has information about the premiums and discounts at which the Fund's Shares have traded. The Exchange represents that it will cease trading the Shares of the Fund if:
(1)The listing market stops trading the Shares because of a regulatory halt similar to a halt based on NYSE Arca Equities Rule 7.12; or
(2)the listing market delists the Shares. Additionally, the Exchange may cease trading the Shares if such other event shall occur or condition exists which in the opinion of the Exchange makes further dealings on the Exchange inadvisable. 8 UTP trading in the Shares is also governed by the trading halts provisions of NYSE Arca Equities Rule 7.34 relating to temporary interruptions in the calculation or wide dissemination of the IIV or the value of the Underlying Index. 8 The Exchange may consider all relevant factors in exercising its discretion to halt or suspend trading in the Shares of a Fund. Trading may be halted because of market conditions or for reasons that, in the view of the Exchange, make trading in the Shares inadvisable. These may include:
(1)*The* extent to which trading is not occurring in the securities comprising an Underlying Index and/or the Financial Instruments (as defined in the Amex Notice) of a Fund, or
(2)whether other unusual conditions or circumstances detrimental to the maintenance of a fair and orderly market are present. In addition, trading in Shares could be halted pursuant to the Exchange's “circuit breaker” rule or by the halt or suspension of trading of the underlying securities. *See* NYSE Arca Equities Rule 7.12 (Trading Halts Due to Extraordinary Market Volatility). The Exchange deems the Shares to be equity securities, thus rendering trading in the Shares subject to the Exchange's existing rules governing the trading of equity securities. Shares will trade on the NYSE Arca Marketplace from 4 a.m. Eastern Time
(ET)to 8 p.m. ET. The Exchange states that it has appropriate rules to facilitate transactions in the Shares during all trading sessions. The Exchange intends to utilize its existing surveillance procedures applicable to derivative products to monitor trading in the Shares. The Exchange represents that these procedures are adequate to properly monitor Exchange trading of the Shares in all trading sessions and to deter and detect violations of Exchange rules. The Exchange may obtain information via the Intermarket Surveillance Group (“ISG”) from other exchanges that are members or affiliates of the ISG. In addition, the Exchange also has a general policy prohibiting the distribution of material, non-public information by its employees. Prior to the commencement of trading, the Exchange will inform its ETP Holders in an Information Bulletin (“Bulletin”) of the special characteristics and risks associated with trading the Shares. Specifically, the Bulletin will discuss the following:
(1)The procedures for purchases and redemptions of Shares in Creation Unit aggregations (and that Shares are not individually redeemable);
(2)NYSE Arca Equities Rule 9.2(a), which imposes a duty of due diligence on its ETP Holders to learn the essential facts relating to every customer prior to trading the Shares; 9
(3)the risks involved in trading the Shares during the Opening and Late Trading Sessions when an updated IIV will not be calculated or publicly disseminated;
(4)how information regarding the IIV is disseminated;
(5)the requirement that ETP Holders deliver a prospectus to investors purchasing newly issued Shares prior to or concurrently with the confirmation of a transaction; and
(6)trading information. In addition, the Bulletin will reference that the Fund is subject to various fees and expenses described in the registration statement for the Fund. The Bulletin will also discuss any exemptive, no-action, and interpretive relief granted by the Commission from any rules under the Act. 9 NYSE Arca Equities Rule 9.2(a) provides that an ETP Holder, before recommending a transaction, must have reasonable grounds to believe that the recommendation is suitable for the customer based on any facts disclosed by the customer as to his other security holdings and as to his financial situation and needs. Further, the rule provides, with a limited exception, that, prior to the execution of a transaction recommended to a non-institutional customer, the ETP Holder shall make reasonable efforts to obtain information concerning the customer's financial status, tax status, investment objectives, and any other information that they believe would be useful to make a recommendation. *See* Securities Exchange Act Release No. 54045 (June 26, 2006), 71 FR 37971 (July 3, 2006) (SR-PCX-2005-115). 2. Statutory Basis The proposal is consistent with section 6(b) of the Act, 10 in general, and 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 foster cooperation and coordination with persons engaged in facilitating transactions in securities, and to remove impediments to and perfect the mechanism of a free and open market and a national market system. In addition, the proposal is consistent with Rule 12f-5 under the Act 12 because the Exchange deems the Shares to be equity securities, thus rendering trading in the Shares subject to the Exchange's existing rules governing the trading of equity securities. 10 15 U.S.C. 78f(b). 11 15 U.S.C. 78f(b)(5). 12 17 CFR 240.12f-5. B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange 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 purpose 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. 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-NYSEArca-2007-81 on the subject line. Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-NYSEArca-2007-81. 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 offices of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-NYSEArca-2007-81 and should be submitted on or before December 5, 2007. IV. Commission's Findings and Order Granting Accelerated Approval of the Proposed Rule Change After careful review, the Commission finds that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange. 13 In particular, the Commission finds that the proposed rule change is consistent with section 6(b)(5) of the Act, 14 which requires that an exchange have rules designed, among other things, 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 Commission believes that this proposal should benefit investors by increasing competition among markets that trade the Shares. 13 In approving this rule change, the Commission notes that it has considered the proposed rule's impact on efficiency, competition, and capital formation. *See* 15 U.S.C. 78c(f). 14 15 U.S.C. 78f(b)(5). In addition, the Commission finds that the proposal is consistent with section 12(f) of the Act, 15 which permits an exchange to trade, pursuant to UTP, a security that is listed and registered on another exchange. 16 The Commission notes that it previously approved the original listing and trading of the Shares on Amex. 17 The Commission finds that the proposal is consistent with Rule 12f-5 under the Act, 18 which provides that an exchange shall not extend UTP to a security unless the exchange has in effect a rule or rules providing for transactions in the class or type of security to which the exchange extends UTP. The Exchange has represented that it meets this requirement because it deems the Shares to be equity securities, thus rendering trading in the Shares subject to the Exchange's existing rules governing the trading of equity securities. 15 15 U.S.C. 78 *l* (f). 16 Section 12(a) of the Act, 15 U.S.C. 78 *l* (a), generally prohibits a broker-dealer from trading a security on a national securities exchange unless the security is registered on that exchange pursuant to *section* 12 of the Act. Section 12(f) of the Act excludes from this restriction trading in any security to which an exchange “extends UTP.” When an exchange extends UTP to a security, it allows its members to trade the security as if it were listed and registered on the exchange even though it is not so listed and registered. 17 *See supra* note 4. 18 17 CFR 240.12f-5. The Commission further believes that the proposal is consistent with section 11A(a)(1)(C)(iii) of the Act, 19 which sets forth Congress' finding that it is in the public interest and appropriate for the protection of investors and the maintenance of fair and orderly markets to assure the availability to brokers, dealers, and investors of information with respect to quotations for and transactions in securities. Quotations for and last-sale information for the Shares will be disseminated through the facilities of the CT. In addition, the NAV per Share of each Fund will be calculated and disseminated daily. Amex disseminates a variety of information through the facilities of the CT including the IIV per Share at least every 15 seconds throughout Amex's trading day, including the market value of a Share for each Fund, the recent NAV for each Fund, the number of Shares outstanding for each Fund, and the estimated cash amount and total cash amount per Creation Unit. Moreover, the value of each Underlying Index will be updated intra-day on a real-time basis as its individual component securities change in price. These intra-day values of each Underlying Index will be disseminated at least every 15 seconds throughout the trading day by Amex or another organization authorized by the relevant Underlying Index provider. Finally, the Trust's Web site will provide various information, including data for at least the four previous calendar quarters (or the life of a Fund, if shorter) indicating how frequently each Fund's Shares traded at a premium or discount to NAV based on the daily closing price and the closing NAV, and the magnitude of such premiums and discounts. 19 15 U.S.C. 78k-1(a)(1)(C)(iii). The Commission also believes that the Exchange's trading halt rules are reasonably designed to prevent trading in the Shares when transparency is impaired. Existing NYSE Arca Equities Rule 7.34(a)(4), which will apply to the trading of the Shares, provides that, if the IIV is no longer calculated or disseminated as required
(a)during the Opening Session (4 a.m. to 9:30 a.m. ET), the Exchange may continue to trade the Shares for the remainder of the Opening Session;
(b)during the Core Trading Session (9:30 a.m. to 4 p.m. ET), the Exchange must halt trading in the Shares; and
(c)during the Late Trading Session (4 p.m. to 8 p.m. ET), the Exchange may continue trading in the Shares only if the original listing market traded such Shares until the close of its regular trading session without halt. If the Indicative IIV continues not to be calculated or disseminated as of the next business day's Opening Session, the Exchange will not commence trading in the Shares in such Opening Session. The Exchange may resume trading in the Shares only if the calculation and dissemination of the IIV resumes, or trading in the Shares resumes in the original listing market. The Commission notes that, if the Shares should be delisted by the listing exchange, the Exchange would no longer have authority to trade the Shares pursuant to this order. In support of this proposal, the Exchange has made the following representations:
(1)The Exchange's surveillance procedures are adequate to address any concerns associated with the trading of the Shares on a UTP basis.
(2)The Exchange would inform its members in an Information Bulletin of the special characteristics and risks associated with trading the Shares, including risks inherent with trading the Shares during the Opening and Late Trading Sessions when the updated IIV is not calculated and disseminated and suitability recommendation requirements.
(3)The Exchange would require its members to deliver a prospectus or product description to investors purchasing Shares prior to or concurrently with a transaction in such Shares and will note this prospectus delivery requirement in the Information Bulletin. This approval order is based on the Exchange's representations. The Commission finds good cause for approving this proposal before the thirtieth day after the publication of notice thereof in the **Federal Register** . As noted above, the Commission previously approved the original listing and trading of the Shares on Amex. The Commission presently is not aware of any regulatory issue that should cause it to revisit those findings or would preclude the trading of the Shares on the Exchange pursuant to UTP. Accelerating approval of this proposal should benefit investors by creating, without undue delay, additional competition in the market for such Shares. V. Conclusion *It is therefore ordered,* pursuant to section 19(b)(2) of the Act, 20 that the proposed rule change (SR-NYSEArca-2007-81) be, and it hereby is, approved on an accelerated basis. 20 15 U.S.C. 78s(b)(2). For the Commission, by the Division of Market Regulation, pursuant to delegated authority. 21 21 17 CFR 200.30-3(a)(12). Florence E. Harmon, Deputy Secretary. [FR Doc. E7-22150 Filed 11-13-07; 8:45 am] BILLING CODE 8011-01-P DEPARTMENT OF STATE [Public Notice 5966] Announcement of Meetings of the International Telecommunication Advisory Committee SUMMARY: This notice announces meetings of the International Telecommunication Advisory Committee
(ITAC)to prepare advice on U.S. positions for working party meetings of the Organization for Economic Co-operation & Development
(OECD)and for the meeting of the Permanent Executive Committee of Organization of American States Inter-American Telecommunication Commission (COM/CITEL). The ITAC will meet to prepare for the OECD December 2007 meetings of the Working Parties on the Information Economy
(WPIE)and Communication and Information Services Policy
(CISP)on November 29, 2007, at the Harry S Truman building (Main State) of the Department of State, room 5804, 2-4 p.m. Eastern Time. A conference bridge will be provided. Meeting details will be posted on the mailing list *iccp-ps@eblist.state.gov.* People desiring to participate on this list may apply to the secretariat at *minardje@state.gov.* The ITAC will meet to prepare for the COM/CITEL December 2007 meeting on November 27, 2007, 2-4 p.m. Eastern Time at a location in the Washington Metro Area. A conference bridge will be provided if requested. Meeting details will be posted on the mailing list *pcci-citel@eblist.state.gov.* People desiring to participate on this list may apply to the secretariat at *minardje@state.gov.* The meetings are open to the public. Dated: November 5, 2007. Doreen McGirr, International Communications & Information Policy, Department of State. [FR Doc. E7-22193 Filed 11-13-07; 8:45 am] BILLING CODE 4710-07-P DEPARTMENT OF TRANSPORTATION Federal Motor Carrier Safety Administration Solicitation of Applications for Fiscal Year
(FY)2008 Motor Carrier Safety Assistance Program (MCSAP) High Priority and New Entrant Grant Funding AGENCY: Federal Motor Carrier Safety Administration (FMCSA), DOT. ACTION: Notice. SUMMARY: FMCSA announces that it has published an opportunity to apply for FY2008 MCSAP High Priority and New Entrant grant funding on the grants.gov Web site *(http://www.grants.gov).* DATES: FMCSA will initially consider funding of applications submitted by January 5, 2008 by qualified applicants. If additional funding remains available, applications submitted after January 5, 2008 will be considered on a case-by-case basis. Funds will not be available for allocation until such time as FY2008 appropriations legislation is passed and signed into law. Funding is subject to reductions resulting from obligation limitations or rescissions as specified in SAFETEA-LU or other legislation. FOR FURTHER INFORMATION CONTACT: Mr. Jack Kostelnik, Federal Motor Carrier Safety Administration, Office of Safety Programs, State Programs Division (MC-ESS), 202-366-5721, 1200 New Jersey Avenue, SE., Washington, DC 20590. Office hours are from 7:30 a.m. to 4 p.m., EST., Monday through Friday, except Federal holidays. SUPPLEMENTARY INFORMATION: Section 4101 of SAFETEA-LU (Public Law 109-59, August 10, 2005, 119 Stat. 1144) amends 49 U.S.C. 31104(a) and authorizes the Motor Carrier Safety Grants funding for FY2006 through FY2009. The expected level of funding for MCSAP is $202,000,000 for FY2008, which includes up to $15,000,000 for High Priority grants and up to $29,000,000 for New Entrant Safety Audits. High priority funds are available for activities conducted by State agencies, local governments, and organizations *representing government agencies* that use and train qualified officers and employees in coordination with State motor vehicle safety agencies. Funds are allocated in accordance with the provisions of 49 CFR 350.313 and 49 CFR 350.319. Further, FMCSA will reserve $5 million in FY2008 high priority funding exclusively for traffic enforcement projects, with particular emphasis on work zone enforcement and other selective traffic enforcement programs. States and local governments are eligible to apply for New Entrant funds. Funds are allocated in accordance with the provisions of 49 CFR 350.313 and 49 CFR 350.321. All applicants must submit an electronic application package through grants.gov. To apply using the grants.gov process, the applicant must be registered with grants.gov. To register, go to *http://www.grants.gov/applicants/get_registered.jsp* . The applicant must download the grant application package, complete the grant application package, and submit the completed grant application package. This can be done on the Internet at *http://www.grants.gov/applicants/apply_for_grants.jsp* . The CFDA number for MCSAP is 20.218. Issued on: October 10, 2007. William A. Quade, Associate Administrator for Enforcement and Program Delivery. [FR Doc. E7-22187 Filed 11-13-07; 8:45 am] BILLING CODE 4910-EX-P DEPARTMENT OF TRANSPORTATION Federal Railroad Administration Petition for Waiver of Compliance In accordance with Part 211 of Title 49 Code of Federal Regulations (CFR), notice is hereby given that the Federal Railroad Administration
(FRA)received a request for a waiver of compliance with certain requirements of its safety standards. The individual petition is described below, including the party seeking relief, the regulatory provisions involved, the nature of the relief being requested, and the petitioner's arguments in favor of relief. Fayette Central Railroad (formerly Uniontown Central Railroad) [Waiver Petition Docket Number FRA-2004-19999] The Fayette Central Railroad
(FCRV)seeks to renew a waiver of compliance from certain provisions of the Safety Glazing Standards, 49 CFR Part 223, which requires certified glazing in all windows. The existing waiver will expire on September 5, 2008. This request is for two
(2)cabooses, Car Numbers PC 18086 (built in 1946) and P&LE 504 (built in 1956), and one locomotive, BO9061 (previously UTCV 5656). The proposed routing of the operation is limited to approximately 20 miles of trackage between Green Junction and Smithfield, Pennsylvania, which is currently operated by the Southwest Pennsylvania Railroad and leased from Fayette-Penn. FCRV states that they use the cabooses four times a year for the town's festivals. Interested parties are invited to participate in these proceedings by submitting written views, data, or comments. FRA does not anticipate scheduling a public hearing in connection with these proceedings since the facts do not appear to warrant a hearing. If any interested party desires an opportunity for oral comment, they should notify FRA, in writing, before the end of the comment period and specify the basis for their request. All communications concerning these proceedings should identify the appropriate docket number ( *e.g.* , Waiver Petition Docket Number FRA-2004-19999) and may be submitted by any of the following methods: • *Web site:* *http://www.regulations.gov.* Follow the online instructions for submitting comments. • *Fax:* 202-493-2251. • *Mail:* Docket Operations Facility, U.S. Department of Transportation, 1200 New Jersey Avenue, SE., W12-140, Washington, DC 20590. • *Hand Delivery:* 1200 New Jersey Avenue, SE., Room W12-140, Washington, DC 20590, between 9 a.m. and 5 p.m., Monday through Friday, except Federal Holidays. Communications received within 45 days of the date of this notice will be considered by FRA before final action is taken. Comments received after that date will be considered as far as practicable. All written communications concerning these proceedings are available for examination during regular business hours (9 a.m.-5 p.m.) at the above facility. All documents in the public docket are also available for inspection and copying on the Internet at the docket facility's Web site at *http://www.regulations.gov.* Anyone is able to search the electronic form of any written communications and comments received into any of our dockets by the name of the individual submitting the comment (or signing the comment, if submitted on behalf of an association, business, labor union, etc.). You may review DOT's complete Privacy Act Statement in the **Federal Register** published on April 11, 2000 (Volume 65, Number 70; Pages 19477-78). Issued in Washington, DC, on November 7, 2007. Grady C. Cothen, Jr., Deputy Associate Administrator for Safety Standards and Program Development. [FR Doc. E7-22243 Filed 11-13-07; 8:45 am] BILLING CODE 4910-06-P DEPARTMENT OF TRANSPORTATION Federal Railroad Administration Petition for Waiver of Compliance In accordance with Part 211 of Title 49 Code of Federal Regulations (CFR), notice is hereby given that the Federal Railroad Administration
(FRA)received a request for a waiver of compliance from certain requirements of its safety standards. The individual petition is described below, including the party seeking relief, the regulatory provisions involved, the nature of the relief being requested, and the petitioner's arguments in favor of relief. The Indiana Rail Road Company [Waiver Petition Docket Number FRA-2007-29280] The Indiana Rail Road Company
(INRD)seeks a waiver of compliance from certain provisions of the Sanitation General Requirements, 49 CFR Section 229.137(a), which requires a compliant sanitation compartment for all lead locomotives. INRD states that the two locomotives that this waiver is being sought for will never operate in a consist alone as a lead locomotive. When in operation, the two specific locomotives, INRD 3801 and INRD 36, will always have a companion locomotive with a fully operational and compliant cab sanitation compartment for the operating crews use. Interested parties are invited to participate in these proceedings by submitting written views, data, or comments. FRA does not anticipate scheduling a public hearing in connection with these proceedings since the facts do not appear to warrant a hearing. If any interested party desires an opportunity for oral comment, they should notify FRA, in writing, before the end of the comment period and specify the basis for their request. All communications concerning these proceedings should identify the appropriate docket number (e.g., Waiver Petition Docket Number 2007-29280) and may be submitted by any of the following methods: • *Web site: http://www.regulations.gov.* Follow the online instructions for submitting comments. • *Fax:* 202-493-2251. • *Mail:* Docket Operations Facility, U.S. Department of Transportation, 1200 New Jersey Avenue, SE., W12-140, Washington, DC 20590. • *Hand Delivery:* 1200 New Jersey Avenue, SE., Room W12-140, Washington, DC 20590, between 9 a.m. and 5 p.m., Monday through Friday, except Federal Holidays. Communications received within 45 days of the date of this notice will be considered by FRA before final action is taken. Comments received after that date will be considered as far as practicable. All written communications concerning these proceedings are available for examination during regular business hours (9 a.m.-5 p.m.) at the above facility. All documents in the public docket are also available for inspection and copying on the Internet at the docket facility's Web site at *http://www.regulations.gov.* Anyone is able to search the electronic form of all comments received into any of our dockets by the name of the individual submitting the comment (or signing the comment, if submitted on behalf of an association, business, labor union, etc.). You may review DOT's complete Privacy Act Statement in the **Federal Register** published on April 11, 2000 (Volume 65, Number 70; Pages 19477-78). Issued in Washington, DC on November 7, 2007. Grady C. Cothen, Jr., Deputy Associate Administrator for Safety Standards and Program Development. [FR Doc. E7-22271 Filed 11-13-07; 8:45 am] BILLING CODE 4910-06-P DEPARTMENT OF TRANSPORTATION Federal Railroad Administration Petition for Waiver of Compliance In accordance with Part 211 of Title 49 Code of Federal Regulations (CFR), notice is hereby given that the Federal Railroad Administration
(FRA)received a request for a waiver of compliance with certain requirements of its safety standards. The individual petition is described below, including the party seeking relief, the regulatory provisions involved, the nature of the relief being requested, and the petitioner's arguments in favor of relief. Watco Companies, Inc. [Waiver Petition Docket Number FRA-2007-27970] The Pennsylvania Southern Railroad/Subsidiary of Watco Companies has petitioned the Federal Railroad Administration
(FRA)to grant a waiver of compliance of the Safety Glazing Standards, 49 CFR Part 223, for three
(3)switch locomotives, specifically PSW 431, 1200 and 1215. The three locomotives operate within a plant and do not exceed 10 miles per hour. There is no record of incidents or accidents pertaining to glazing and no record of vandalism. Operation is on other than main track and approximately 30 minutes per day, 5 days per week to the Norfolk Southern interchange point. Interested parties are invited to participate in these proceedings by submitting written views, data, or comments. FRA does not anticipate scheduling a public hearing in connection with these proceedings since the facts do not appear to warrant a hearing. If any interested party desires an opportunity for oral comment, they should notify FRA, in writing, before the end of the comment period and specify the basis for their request. All communications concerning these proceedings should identify the appropriate docket number (e.g., Waiver Petition Docket Number 2007-27970) and may be submitted by any of the following methods: • *Web site:* *http://www.regulations.gov.* Follow the online instructions for submitting comments. • *Fax:* 202-493-2251. • *Mail:* Docket Operations Facility, U.S. Department of Transportation, 1200 New Jersey Avenue, SE., W12-140, Washington, DC 20590. • *Hand Delivery:* 1200 New Jersey Avenue, SE., Room W12-140, Washington, DC 20590, between 9 a.m. and 5 p.m., Monday through Friday, except Federal Holidays. Communications received within 45 days of the date of this notice will be considered by FRA before final action is taken. Comments received after that date will be considered as far as practicable. All written communications concerning these proceedings are available for examination during regular business hours (9 a.m.-5 p.m.) at the above facility. All documents in the public docket are also available for inspection and copying on the Internet at the docket facility's Web site at *http://www.regulations.gov.* Anyone is able to search the electronic form of any written communications and comments received into any of our dockets by the name of the individual submitting the comment (or signing the comment, if submitted on behalf of an association, business, labor union, etc.). You may review DOT's complete Privacy Act Statement in the **Federal Register** published on April 11, 2000 (Volume 65, Number 70; Pages 19477-78). Issued in Washington, DC on November 7, 2007. Grady C. Cothen, Jr., Deputy Associate Administrator for Safety Standards and Program Development. [FR Doc. E7-22270 Filed 11-13-07; 8:45 am] BILLING CODE 4910-06-P DEPARTMENT OF TRANSPORTATION Federal Railroad Administration [Docket No. FRA-2000-7257; Notice No. 39] Railroad Safety Advisory Committee (RSAC); Working Group Activity Update AGENCY: Federal Railroad Administration (FRA), Department of Transportation (DOT). ACTION: Announcement of Railroad Safety Advisory Committee
(RSAC)Working Group Activities. SUMMARY: The FRA is updating its announcement of RSAC's Working Group activities to reflect its current status. FOR FURTHER INFORMATION CONTACT: Larry Woolverton, RSAC Coordinator, FRA, 1120 Vermont Avenue, NW., Mailstop 25, Washington, DC 20590,
(202)493-6212 or Grady Cothen, Deputy Associate Administrator for Safety, FRA, 1120 Vermont Avenue, NW., Mailstop 25, Washington, DC 20590,
(202)493-6302. SUPPLEMENTARY INFORMATION: This notice serves to update FRA's last announcement of working group activities and status reports of October 30, 2007, in Vol. 72, No. 209/Notices. In the section of the update under the heading of Task 06-03: Medical Standards for Safety-Critical Personnel, an incorrect meeting date was published. The correct meeting date for the next Medical Standards for Safety-Critical Personnel working group is December 4-5, 2007, and not December 3-4, 2007, as originally published. Issued in Washington, DC, on November 7, 2007. Michael J. Logue, Deputy Associate Administrator for Safety Compliance and Program Implementation. [FR Doc. E7-22208 Filed 11-13-07; 8:45 am] BILLING CODE 4910-06-P DEPARTMENT OF TRANSPORTATION Maritime Administration [Docket No. MARAD-2007 0012] Determination of Foreign Reconstruction or Rebuilding of U.S.-Built Vessels That Participate in the Capital Construction Fund and Cargo Preference Programs AGENCY: Maritime Administration, Department of Transportation. ACTION: Notice and Request for Comments. SUMMARY: The Maritime Administration seeks public comment on what standards the Maritime Administration should apply when making determinations of foreign reconstruction of U.S.-built vessels that participate in the Capital Construction Fund program and foreign rebuilding of U.S.-built vessels that participate in the cargo preference program. DATES: Comments are due January 14, 2008. ADDRESSES: You may submit comments by any of the following methods: • *Web Site: http://regulations.gov* . Follow the instructions for submitting comments on the Federal Dockets Management System
(FDMS)electronic docket site. • *Mail* : Docket Management Facility; U.S. Department of Transportation, 1200 New Jersey Ave., SE., Washington, DC 20590-0001. Faxed or hand-delivered submissions must be unbound, no larger than 8 1/2 by 11 inches, and suitable for copying and electronic scanning. Mailed submissions requiring confirmation of receipt should include a stamped, self-addressed postcard or envelope. • *Hand Delivery* : Plaza level of Department of Transportation Headquarters, 1200 New Jersey Ave., SE., Washington, DC 20590-0001, between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. *Instructions* : All submissions must include the agency name and docket number for this action. Regardless of the method used for submitting comments or material, all submissions will be posted, without change, to the FDMS Web site ( *http://regulations.gov* ), and will include any personal information provided. Therefore, submitting this information makes it public. Please read the Privacy Act notice that is available on the FDMS Web site, or the Department of Transportation Privacy Act statement that appeared in the **Federal Register** on April 11, 2000 (65 FR 19477). *Docket* : For access to the docket to read background documents or comments received, go to *http://regulations.gov* . *Privacy Act* : Anyone is able to search the electronic form of all comments received into any of our dockets by the name of the individual submitting the comment (or signing the comment, if submitted on behalf of an association, business, labor union, etc.). You may review the Department of Transportation's complete Privacy Act Statement in the **Federal Register** published on April 11, 2000 (Volume 65, Number 70; Pages 19477-78). FOR FURTHER INFORMATION CONTACT: Murray A. Bloom, Chief, Division of Maritime Programs, Office of Chief Counsel, Maritime Administration, 1200 New Jersey Ave., SE., Washington, DC 20590; Ph.
(202)366-5320, fax:
(202)366-5123; or e-mail *murray.bloom@dot.gov* . SUPPLEMENTARY INFORMATION: There are three maritime promotional statutes that mandate the use of U.S.-built vessels and generally provide that a U.S.-built vessel becomes ineligible if the vessel is reconstructed or rebuilt in a foreign country. 1. Section 12132(b) of title 46, United States Code, provides that a vessel eligible to engage in the U.S. coastwise trade and later rebuilt outside the United States may no longer engage in the coastwise trade. This statute is administered by the U.S. Coast Guard. 2. Chapter 535 of title 46, United States Code, established the Capital Construction Fund
(CCF)program, whereby a U.S. citizen owner of an eligible vessel may defer Federal income taxes on income derived from the operation of eligible vessels to the extent that income is deposited into a fund to be used solely for the acquisition, construction or reconstruction of qualified vessels. The statutory definitions of both “eligible” and “qualified” vessels require such vessels, if reconstructed, to be reconstructed in the United States. The Maritime Administration administers the CCF program (except for the CCF applicable to fishery vessels administered by the National Oceanic and Atmospheric Administration) under regulations located at 46 CFR 390. 3. Chapter 553 of title 46, United States Code, provides that preference be given in the carriage of U.S. Government-impelled cargoes to “privately-owned commercial vessels of the United States.” That term is defined by statute as excluding a vessel rebuilt in a foreign country, unless the vessel shall have been documented under U.S. registry for at least three years. The shippers responsible for shipping cargo subject to the cargo preference statutes do so under regulations issued by the Maritime Administration at 46 CFR Part 381. These three statutes raise difficult problems of interpretation and enforcement. The Maritime Administration will consider any and all comments as to how the Maritime Administration should administer the programs assigned to it. However, in order to focus the discussion, we suggest that submitters of comments respond to the following questions: 1. What substantive standards should the Maritime Administration apply to determine whether a CCF vessel has been reconstructed or a cargo preference vessel has been rebuilt? 2. What procedures should the Maritime Administration adopt to investigate whether a CCF vessel has been reconstructed or a cargo preference vessel has been rebuilt? 3. What role, if any, should unrelated third parties, such as competitors or shipyards, play in developing a record for decision on whether a CCF vessel has been reconstructed or a cargo preference vessel has been rebuilt? 4. What public disclosure criteria should apply to the record for decision on whether a CCF vessel has been reconstructed or a cargo preference vessel has been rebuilt? Authority: 49 CFR 1.66. Dated: November 7, 2007. By Order of the Maritime Administrator. Christine S. Gurland, Acting Secretary, Maritime Administration. [FR Doc. E7-22189 Filed 11-13-07; 8:45 am] BILLING CODE 4910-81-P DEPARTMENT OF THE TREASURY Financial Crimes Enforcement Network; Bank Secrecy Act Advisory Group; Solicitation of Application for Membership AGENCY: Financial Crimes Enforcement Network, Department of the Treasury. ACTION: Notice and request for nominations. SUMMARY: FinCEN is inviting the public to nominate financial institutions and trade groups for membership on the Bank Secrecy Act Advisory Group. New members will be selected for three-year membership terms. DATES: Nominations must be received by December 14, 2007. ADDRESSES: Applications may be mailed (not sent by facsimile) to Regulatory Policy and Programs Division, Financial Crimes Enforcement Network, P.O. Box 39, Vienna, VA 22183 or e-mailed to: *BSAAG@fincen.gov.* FOR FURTHER INFORMATION CONTACT: Jennifer White, Regulatory Outreach Specialist at 202-354-6400. SUPPLEMENTARY INFORMATION: The Annunzio-Wylie Anti-Money Laundering Act of 1992 required the Secretary of the Treasury to establish a Bank Secrecy Act Advisory Group (BSAAG) consisting of representatives from federal regulatory and law enforcement agencies, financial institutions, and trade groups' subject to the reporting requirements of the Bank Secrecy Act, 31 CFR 103 *et seq.* or Section 6050I of the Internal Revenue Code of 1986. The BSAAG is the means by which the Secretary receives advice on the operations of the Bank Secrecy Act. As chair of the BSAAG, the Director of FinCEN is responsible for ensuring that relevant issues are placed before the BSAAG for review, analysis, and discussion. Ultimately, the BSAAG will make policy recommendations to the Secretary on issues considered. BSAAG membership is open to financial institutions and trade groups. New members will be selected to serve a three-year term. It is important to provide complete answers to the following items, as applications will be evaluated on the information provided through this application process. Applications should consist of: • Name of the organization requesting membership. • Point of contact, title, address, e-mail address, phone number. • The BSAAG vacancy for which the organization is applying. • Description of the financial institution or trade group and its involvement with the Bank Secrecy Act, 31 CFR 103 *et seq.* • Reasons why the organization's participation on the BSAAG will bring value to the group. Organizations may nominate themselves, but applications for individuals who are not representing an organization will not be considered. FinCEN is interested in bringing representatives from state regulatory agencies, state regulator trade groups, self-regulatory organizations, industry trade groups, and industry members together with federal law enforcement and federal regulatory agencies to help advise the Secretary of the Treasury on matters relating to the administration of the Bank Secrecy Act. Members must be able and willing to make the necessary time commitment to participate on sub-committees throughout the year by phone and attend biannual plenary meetings held in Washington, DC in the spring and fall. Members will not be remunerated for their time, services, or travel. In making the selections, FinCEN will seek to complement current BSAAG members in terms of affiliation, industry, and geographic representation. The Director of FinCEN retains full discretion on all membership decisions. The Director may consider prior years' applications when making selections and does not limit consideration to institutions nominated by the public when making its selection. Based on current BSAAG position openings we encourage applications from the following sectors or types of organizations with experience working on the Bank Secrecy Act: • Self-Regulatory Organizations (2 vacancies). • State Governments (1 vacancy). • Industry Trade Groups—Banking Sector (1 vacancy). • Industry Trade Groups—State Level (1 vacancy). • Industry Trade Groups—International (1 vacancy). • Industry Trade Groups—Money Services Business Sector (1 vacancy). • Industry Trade Groups—Securities (1 vacancy). • Industry Trade Groups—Mutual Funds (1 vacancy). • Industry Trade Groups—Investment Companies (1 vacancy). • Industry Representatives—Banking (2 vacancies). • Industry Representatives—Stored Value (1 vacancy). • Industry Representatives—Securities/ Futures (1 vacancy). Dated: November 6, 2007. James H. Freis, Jr., Director, Financial Crimes Enforcement Network. [FR Doc. E7-22181 Filed 11-13-07; 8:45 am] BILLING CODE 4810-02-P DEPARTMENT OF THE TREASURY Fiscal Service Surety Companies Acceptable on Federal Bonds: Southwest Marine and General Insurance Company AGENCY: Financial Management Service, Fiscal Service, Department of the Treasury. ACTION: Notice. SUMMARY: This is Supplement No. 4 to the Treasury Department Circular 570, 2007 Revision, published July 2, 2007, at 72 FR 36192. FOR FURTHER INFORMATION CONTACT: Surety Bond Branch at
(202)874-6850. SUPPLEMENTARY INFORMATION: A Certificate of Authority as an acceptable surety on Federal bonds is hereby issued under 31 U.S.C. 9305 to the following company: Southwest Marine and General Insurance Company (NAIC #12294). Business Address: 919 Third Avenue, New York, NY 10022. Phone:
(212)551-0600. Underwriting Limitation b/: $2,503,000. Surety Licenses c/: AZ. Incorporated in Arizona. Federal bond-approving officers should annotate their reference copies of the Treasury Circular 570 (“Circular”), 2007 Revision, to reflect this addition. Certificates of Authority expire on June 30th each year, unless revoked prior to that date. The Certificates are subject to subsequent annual renewal as long as the companies remain qualified ( *see* 31 CFR part 223). A list of qualified companies is published annually as of July 1 in the Circular, which outlines details as to underwriting limitations, areas in which companies are licensed to transact surety business, and other information. The Circular may be viewed and downloaded through the Internet at *http://www.fms.treas.gov/c570.* Questions concerning this Notice may be directed to the U.S. Department of the Treasury, Financial Management Service, Financial Accounting and Services Division, Surety Bond Branch, 3700 East-West Highway, Room 6F01, Hyattsville, MD 20782. Dated: November 5, 2007. Vivian L. Cooper, Director, Financial Accounting and Services Division. [FR Doc. 07-5639 Filed 11-13-07; 8:45 am]
Connectionstraces to 11
18 references not yet in our index
  • Pub. L. 100-647
  • Pub. L. 94-409
  • 17 CFR 240.19
  • 17 CFR 240.17
  • 15 USC 78
  • 17 CFR 240.12
  • Pub. L. 109-59
  • 119 Stat. 1144
  • 49 CFR 350.313
  • 49 CFR 350.319
  • 49 CFR 350.321
  • 49 CFR 223
  • 49 CFR 229.137(a)
  • 46 CFR 390
  • 46 CFR 381
  • 49 CFR 1.66
  • 31 CFR 103
  • 31 CFR 223
Citation graph
cites case law
Notices
Notice
U.S.C.§ 358
U.S.C.§ 362
U.S.C.§ 78s
U.S.C.§ 78c
U.S.C.§ 78f
C.F.R.§ 200.30-3
U.S.C.§ 552
U.S.C.§ 78o–3
U.S.C.§ 78k–1
Pub. L.Pub. L. 100-647
Pub. L.Pub. L. 94-409
Cite17 CFR 240.19
Cites 29 · showing 12Cited by 0 across 0 sources
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