[Federal Register Volume 76, Number 179 (Thursday, September 15, 2011)]
[Notices]
[Pages 57034-57036]
[FR Doc No: 2011-23518]

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ENVIRONMENTAL PROTECTION AGENCY

[EPA-HQ-OPP-2011-0005; FRL-8887-7]

Pesticide Products; Receipt of Applications To Register New Uses

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

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SUMMARY: This notice announces receipt of applications to register new
uses for pesticide products containing currently registered active
ingredients, pursuant to the provisions of section 3(c) of the Federal
Insecticide, Fungicide, and Rodenticide Act (FIFRA), as amended. EPA is
publishing this Notice of such applications, pursuant to section
3(c)(4) of FIFRA.

DATES: Comments must be received on or before October 17, 2011.

ADDRESSES: Submit your comments, identified by the docket
identification (ID) number specified within the table below, by one of
the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov.
Follow the on-line instructions for submitting comments.
     Mail: Office of Pesticide Programs (OPP) Regulatory Public
Docket (7502P), Environmental Protection Agency, 1200 Pennsylvania
Ave., NW., Washington, DC 20460-0001.
     Delivery: OPP Regulatory Public Docket (7502P),
Environmental Protection Agency, Rm. S-4400, One Potomac Yard (South
Bldg.), 2777 S. Crystal Dr., Arlington, VA. Deliveries are only
accepted during the Docket Facility's normal hours of operation (8:30
a.m. to 4 p.m., Monday through Friday, excluding legal holidays).
Special arrangements should be made for deliveries of boxed
information. The Docket Facility telephone number is<PHONE_NUMBER>.
    Instructions: Direct your comments to the docket ID number
specified for the pesticide of interest as shown in the registration
application summaries. EPA's policy is that all comments received will
be included in the docket without change and may be made available on-
line at http://www.regulations.gov, including any personal information
provided, unless the comment includes information claimed to be
Confidential Business Information (CBI) or other information whose
disclosure is restricted by statute. Do not submit information that you
consider to be CBI or otherwise protected through regulations.gov or e-
mail. The regulations.gov Web site is an ``anonymous access'' system,
which means EPA will not know your identity or contact information
unless you provide it in the body of your comment. If you send an e-
mail comment directly to EPA without going through regulations.gov,
your e-mail address will be automatically captured and included as part
of the comment that is placed in the docket and made available on the
Internet. If you submit an electronic comment, EPA recommends that you
include your name and other contact information in the body of your
comment and with any disk or CD-ROM you submit. If EPA cannot read your
comment due to technical difficulties and cannot contact you for
clarification, EPA may not be able to consider your comment. Electronic
files should avoid the use of special characters, any form of
encryption, and be free of any defects or viruses.
    Docket: All documents in the docket are listed in the docket index
available at http://www.regulations.gov. Although listed in the index,
some information is not publicly available, e.g., CBI or other
information whose disclosure is restricted by statute. Certain other
material, such as copyrighted material, is not placed on the Internet
and will be publicly available only in hard copy form. Publicly
available docket materials are available either in the electronic
docket at http://www.regulations.gov, or, if only available in hard
copy, at the OPP Regulatory Public Docket in Rm. S-4400, One Potomac
Yard (South Bldg.), 2777 S. Crystal Dr., Arlington, VA. The hours of
operation of this Docket Facility are from 8:30 a.m. to 4 p.m., Monday
through Friday, excluding legal holidays. The Docket Facility telephone
number is<PHONE_NUMBER>.

FOR FURTHER INFORMATION CONTACT: A contact person is listed at the end
of each registration application summary and may be contacted by
telephone or e-mail. The mailing address for each contact person listed
is: Registration Division (7505P), Office of Pesticide Programs,
Environmental Protection Agency, 1200 Pennsylvania Ave., NW.,
Washington, DC 20460-0001 or Biopesticides and Pollution Prevention
Division (7511P), Office of Pesticide Programs, Environmental
Protection Agency, 1200 Pennsylvania Ave., NW., Washington, DC 20460-
0001.

SUPPLEMENTARY INFORMATION:

I. General Information

A. Does this action apply to me?

    You may be potentially affected by this action if you are an
agricultural producer, food manufacturer, or pesticide manufacturer.
Potentially affected entities may include, but are not limited to:
     Crop production (NAICS code 111).
     Animal production (NAICS code 112).
     Food manufacturing (NAICS code 311).
     Pesticide manufacturing (NAICS code 32532).
    This listing is not intended to be exhaustive, but rather provides
a guide for readers regarding entities likely to be affected by this
action. Other types of entities not listed in this unit could also be
affected. The North American Industrial Classification System (NAICS)
codes have been provided to assist you and others in determining
whether this action might apply to

certain entities. If you have any questions regarding the applicability
of this action to a particular entity, consult the person listed under
FOR FURTHER INFORMATION CONTACT.

B. What should I consider as I prepare my comments for EPA?

    1. Submitting CBI. Do not submit this information to EPA through
regulations.gov or e-mail. Clearly mark the part or all of the
information that you claim to be CBI. For CBI information in a disk or
CD-ROM that you mail to EPA, mark the outside of the disk or CD-ROM as
CBI and then identify electronically within the disk or CD-ROM the
specific information that is claimed as CBI. In addition to one
complete version of the comment that includes information claimed as
CBI, a copy of the comment that does not contain the information
claimed as CBI must be submitted for inclusion in the public docket.
Information so marked will not be disclosed except in accordance with
procedures set forth in 40 CFR part 2.
    2. Tips for preparing your comments. When submitting comments,
remember to:
    i. Identify the document by docket ID number and other identifying
information (subject heading, Federal Register date and page number).
If you are commenting on a docket that addresses multiple products,
please indicate to which registration number(s) your comment applies.
    ii. Follow directions. The Agency may ask you to respond to
specific questions or organize comments by referencing a Code of
Federal Regulations (CFR) part or section number.
    iii. Explain why you agree or disagree; suggest alternatives and
substitute language for your requested changes.
    iv. Describe any assumptions and provide any technical information
and/or data that you used.
    v. If you estimate potential costs or burdens, explain how you
arrived at your estimate in sufficient detail to allow for it to be
reproduced.
    vi. Provide specific examples to illustrate your concerns and
suggest alternatives.
    vii. Explain your views as clearly as possible, avoiding the use of
profanity or personal threats.
    viii. Make sure to submit your comments by the comment period
deadline identified.

II. Registration Applications for New Uses

    EPA received applications as follows to register pesticide products
containing currently registered active ingredients pursuant to the
provisions of section 3(c) of FIFRA, and is publishing this Notice of
such applications pursuant to section 3(c)(4) of FIFRA. Notice of
receipt of these applications does not imply a decision by the Agency
on the applications.
    1. Registration Numbers: 100-815 and 100-816. Docket Number: EPA-
HQ-OPP-2011-0657. Company Name and Address: Syngenta Crop Protection,
LLC, P.O. Box 18300, Greensboro, NC 27419. Active Ingredient: S-
metolachlor. Proposed Uses: Cilantro and beet, garden, leaves. Contact:
Michael Walsh, Registration Division,<PHONE_NUMBER>,
<EMAIL_ADDRESS>    2. Registration Numbers: 66330-45 and 66330-46. Docket Number: EPA-
HQ-OPP-2011-0641. Company Name and Address: Arysta LifeScience North
America LLC, 15401 Weston Parkway, Suite 150, Cary, NC 27513. Active
Ingredient: Amicarbazone. Proposed Use: Turf. Contact: Michael Walsh,
Registration Division,<PHONE_NUMBER><EMAIL_ADDRESS>    3. Registration Numbers: 62719-73, 62719-80, 62719-81, and 62719-
84. Docket Number: EPA-HQ-OPP-2011-0569. Company Name and Address: Dow
AgroSciences LLC, 9330 Zionsville Road, Indianapolis, IN 46268. Active
Ingredient: Clopyralid. Proposed Uses: Apple, Leafy Brassica Subgroup
5B, and Rapeseed Subgroup 20A. Contact: Michael Walsh, Registration
Division,<PHONE_NUMBER><EMAIL_ADDRESS>    4. Registration Numbers: 100-1098 and 100-1120. Docket Number: EPA-
HQ-OPP-2011-0398. Company Name and Address: Syngenta Crop Protection,
LLC, P.O. Box 18300, Greensboro, NC 27419. Active Ingredient:
Azoxystrobin. Proposed Uses: Post-harvest uses on potatoes, and crop
group expansions for bulb vegetables 3-07A and 3-07B; caneberries 13-
07A; bushberries 13-07B; small fruit vine climbing 13-07F, except fuzzy
kiwifruit; low growing berry 13-07G, except cranberry; low growing
berry 13-07H, except strawberry; citrus crop group 10-10; and fruiting
vegetable crop group 8-10; dragon fruit as part of tropical fruits;
wasabi as part of crop group 19; and oilseed crop group 20. Contact:
Heather Garvie, Registration Division,<PHONE_NUMBER>,
<EMAIL_ADDRESS>    5. Registration Number: 100-1178. Docket Number: EPA-HQ-OPP-2011-
0398. Company Name and Address: Syngenta Crop Protection, LLC, P.O. Box
18300, Greensboro, NC 27419. Active Ingredients: Azoxystrobin and
propiconazole. Proposed Uses: Beans, dry and succulent; and crop group
expansions for caneberry, subgroup 13-07A; bushberry subgroup 13-07B;
and bulb vegetable, crop group 3-07. Contact: Heather Garvie,
Registration Division,<PHONE_NUMBER><EMAIL_ADDRESS>    6. Registration Number: 100-1308. Docket Number: EPA-HQ-OPP-2011-
0398. Company Name and Address: Syngenta Crop Protection, LLC, P.O. Box
18300, Greensboro, NC 27419. Active Ingredients: Azoxystrobin and
fludioxonil. Proposed Use: Crop group expansion on citrus crop group
10-10. Contact: Heather Garvie, Registration Division,<PHONE_NUMBER>,
<EMAIL_ADDRESS>    7. Registration Number: 100-1313. Docket Number: EPA-HQ-OPP-2011-
0398. Company Name and Address: Syngenta Crop Protection, LLC, P.O. Box
18300, Greensboro, NC 27419. Active Ingredients: Azoxystrobin and
difenoconazole. Proposed Uses: Crop group expansions for citrus fruits,
crop group 10-10; small fruit vine climbing 13-07F, except fuzzy
kiwifruit; low growing berry subgroup 13-07G, except cranberry; bulb
vegetable, crop group 3-07 and fruiting vegetable, crop group 8-10.
Contact: Heather Garvie, Registration Division,<PHONE_NUMBER>,
<EMAIL_ADDRESS>    8. Registration Number: 100-1324. Docket Number: EPA-HQ-OPP-2011-
0398. Company Name and Address: Syngenta Crop Protection, LLC., P.O.
Box 18300, Greensboro, NC 27419. Active Ingredients: Azoxystrobin and
propiconazole. Proposed Uses: Beans, dry and succulent; and crop group
expansions for caneberry, subgroup 13-07A; bushberry subgroup 13-07B;
low growing berry subgroup 13-07G, except cranberry; and bulb onion
subgroup 3-07A and green onion subgroup 3-07B. Contact: Heather Garvie,
Registration Division,<PHONE_NUMBER><EMAIL_ADDRESS>    9. File Symbol: 499-LLT. Docket Number: EPA-HQ-OPP-2011-0575.
Company Name and Address: Whitmire Micro-Gen Research Laboratories,
Inc., 3568 Tree Court Industrial Blvd., Saint Louis, MO 63122. Active
Ingredient: Novaluron. Proposed Use: For control of termites. Contact:
Jennifer Gaines, Registration Division,<PHONE_NUMBER>,
<EMAIL_ADDRESS>    10. File Symbols: 66222-EGE and 66222-EGR. Docket Number: EPA-HQ-
OPP-2011-0576. Company Name and Address: Makhteshim Agan of North
America, Inc., 4515 Falls of Neuse Road, Suite 300, Raleigh, NC 27609.
Active Ingredient: Novaluron. Proposed Use: For control of mosquito
larvae. Contact: Jennifer Gaines, Registration Division, (703) 305-
5967<EMAIL_ADDRESS>

    11. Registration Numbers: 66330-64 and 66330-65. Docket Number:
EPA-HQ-OPP-2009-0677. Company Name and Address: Arysta LifeScience,
North America LLC, 15401 Weston Parkway, Suite 150, Cary, NC 27513.
Active Ingredient: Fluoxastrobin. Proposed Use: Rice grain. Contact:
Heather Garvie, Registration Division,<PHONE_NUMBER>,
<EMAIL_ADDRESS>    12. File Symbol: 85685-E. Docket Number: EPA-HQ-OPP-2011-0664.
Company Name and Address: FourStar Microbial Products LLC, 3330 Noyac
Road, Bldg. E, Sag Harbor, NY 11963. Active Ingredients: Bacillus
thuringiensis subspecies israelensis strain BMP 144 solids, spores and
insecticidal toxins and Bacillus sphaericus. Proposed Use: Standing
waters to control mosquitos. Contact: Kathleen Martin, Biopesticide and
Pollution Prevention Division,<PHONE_NUMBER><EMAIL_ADDRESS>    13. File Symbol: 87766-R. Docket Number: EPA-HQ-OPP-2011-0630.
Company Name and Address: Trifecta LLC, P.O. Box 9825, Fayetteville, AR
72703. Active Ingredient: Carbon dioxide (CO2). Proposed
Use: For control of fire ants. Contact: Gene Benbow, Registration
Division,<PHONE_NUMBER><EMAIL_ADDRESS>    14. File Symbol: 87942-R. Docket Number: EPA-HQ-OPP-2011-0629.
Company Name and Address: Rentokil Initial plc, 33 Chicago Avenue, Oak
Park, IL 60302. Active Ingredient: Carbon dioxide (CO2).
Proposed Uses: For control of Norway rats, roof rats, and house mice.
Contact: Gene Benbow, Registration Division,<PHONE_NUMBER>,
<EMAIL_ADDRESS>
List of Subjects

    Environmental protection, Pesticides and pest.

    Dated: September 6, 2011.
Lois Rossi,
Director, Registration Division, Office of Pesticide Programs.
[FR Doc. 2011-23518 Filed 9-14-11; 8:45 am]
BILLING CODE 6560-50-P


[Federal Register Volume 76, Number 123 (Monday, June 27, 2011)]
[Notices]
[Pages 37345-37346]
[FR Doc No: 2011-16029]

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ENVIRONMENTAL PROTECTION AGENCY

[EPA-HQ-OECA-2010-0368; FRL-9324-7]

Agency Information Collection Activities; Submission to OMB for
Review and Approval; Comment Request; NSPS for Polymeric Coating of
Supporting Substrates Facilities (Renewal)

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

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SUMMARY: In compliance with the Paperwork Reduction Act (44 U.S.C. 3501
et seq.), this document announces that an Information Collection
Request (ICR) has been forwarded to the Office of Management and Budget
(OMB) for review and approval. This is a request to renew an existing
approved collection. The ICR which is abstracted below describes the
nature of the collection and the estimated burden and cost.

DATES: Additional comments may be submitted on or before July 27, 2011.

ADDRESSES: Submit your comments, referencing docket ID number EPA-HQ-
OECA-2010-0368, to: (1) EPA online using http://www.regulations.gov
(our preferred method), or by e-mail to<EMAIL_ADDRESS>or by mail
to: EPA Docket Center (EPA/DC), Environmental Protection Agency,
Enforcement and Compliance Docket and Information Center, mail code
28221T, 1200 Pennsylvania Avenue, NW., Washington, DC 20460; and (2)
OMB at: Office of Information and Regulatory Affairs, Office of
Management and Budget (OMB), Attention: Desk Officer for EPA, 725 17th
Street, NW., Washington, DC 20503.

FOR FURTHER INFORMATION CONTACT: Learia A. Williams, Office of
Compliance and Enforcement, Mail Code 2227A, U.S. Environmental
Protection Agency, 1200 Pennsylvania Avenue, NW., Washington, DC 20460;
telephone number:<PHONE_NUMBER>; fax number:<PHONE_NUMBER>; e-mail
address<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: EPA has submitted the following ICR to OMB
for review and approval according to the procedures prescribed in 5 CFR
1320.12. On June 2, 2010 (75 FR 30812), EPA sought comments on this ICR
pursuant to 5 CFR 1320.8(d). EPA received no comments. Any additional
comments on this ICR should be submitted to EPA and OMB within 30 days
of this notice.
    EPA has established a public docket for this ICR under docket ID
number EPA-HQ-OECA-2010-0368 which is available for public viewing
online at http://www.regulations.gov, in person viewing at the
Enforcement and Compliance Docket in the EPA Docket Center (EPA/DC),
EPA West, Room 3334, 1301 Constitution Avenue, NW., Washington, DC. The
EPA Docket Center Public Reading Room is open from 8:30 a.m. to 4:30
p.m., Monday through Friday, excluding legal holidays. The telephone
number for the Reading Room is<PHONE_NUMBER>, and the telephone number
for the Enforcement and Compliance Docket is<PHONE_NUMBER>.
    Use EPA's electronic docket and comment system at http://www.regulations.gov, to either submit or view public comments, access
the index listing of the contents of the docket, and to access those
documents in the docket that are available electronically. Once in the
system, select ``docket search,'' then key in the docket ID number
identified above. Please note that EPA's policy is that public
comments, whether submitted electronically or in paper, will be made
available for public viewing at http://www.regulations.gov as EPA
receives them and without change, unless the comment contains
copyrighted material, Confidential Business Information (CBI), or other
information whose public disclosure is restricted by statute. For
further information about the electronic docket, go to http://www.regulations.gov.
    Title: NSPS for Polymeric Coating of Supporting Substrates
Facilities (Renewal).
    ICR Numbers: EPA ICR Number 1284.09 OMB Control Number 2060-0181.
    ICR Status: This ICR is scheduled to expire on July 31, 2011. Under
OMB regulations, the Agency may continue to conduct or sponsor the
collection of information while this submission is pending at OMB. An
agency may not conduct or sponsor, and a person is not required to
respond to, a collection of information unless it displays a currently
valid OMB control number. The OMB control numbers for EPA's regulations
in title 40 of the CFR, after appearing in the Federal Register when
approved, are listed in 40 CFR part 9, and displayed either by
publication in the Federal Register or by other appropriate means, such
as on the related collection instrument or form, if applicable. The
display of OMB control numbers in certain EPA regulations is
consolidated in 40 CFR part 9.
    Abstract: NSPS for Polymeric Coating of Supporting Substrates
Facilities are subject to the General Provisions at 40 CFR part 60,
subpart A, and any changes, or additions to these Provisions specified
at 40 CFR part 60, subpart VVV.
    Owners or operators of the affected facilities must submit a one-
time-only report of any physical or operational changes, initial
performance tests, and periodic reports and results. Owners or
operators are also required to maintain records of the occurrence and
duration of any startup, shutdown, or malfunction in the operation of
an affected facility, or any period during which the monitoring system
is inoperative. Reports, at a minimum, are required semiannually.
    Burden Statement: The annual public reporting and recordkeeping
burden for this collection of information is estimated to average 82
hours per response. Burden means the total time, effort, or financial
resources expended by persons to generate, maintain, retain, or
disclose or provide information to or for a Federal agency. This
includes the time needed to review instructions; develop, acquire,
install, and utilize technology and systems for the purposes of
collecting, validating, and verifying information, processing and
maintaining information, and disclosing and providing information;
adjust the existing ways to comply with any previously applicable
instructions and requirements which have subsequently changed; train
personnel to be able to respond to a collection of information; search
data sources; complete and review the collection of information; and
transmit or otherwise disclose the information.
    Respondents/Affected Entities: Owners or operators of polymeric
coating of supporting substrates facilities.
    Estimated Number of Respondents: 56.
    Frequency of Response: Initially, quarterly, and semiannually.
    Estimated Total Annual Hour Burden: 13,108.
    Estimated Total Annual Cost: $1,866,424, which includes $1,229,924
in labor costs, $48,500 in capital/startup costs, and $588,000 in
operation and maintenance (O&M) costs.
    Changes in the Estimates: The small increase in burden and cost to
the Respondents and the Agency from the

most recently approved ICR are due to an increase in the number of
expected respondents and use of recently available labor rates. There
is no change in the calculation methodology for labor hours and Agency
costs in this ICR compared to the previous ICR due to two
considerations: (1) The regulations have not changed over the past
three years and are not anticipated to change over the next three
years; and (2) the growth rate for the respondents is very low. There
have been no program changes.

    Dated: June 21, 2011
John Moses,
Director, Collection Strategies Division.
[FR Doc. 2011-16029 Filed 6-24-11; 8:45 am]
BILLING CODE 6560-50-P


			  UNITED STATES OF AMERICA

		        DEPARTMENT OF TRANSPORTATION

			  OFFICE OF THE SECRETARY

			          WASHINGTON, D.C.

Issued by the Department of Transportation on May 1, 2003

NOTICE OF ACTION TAKEN -- DOCKET OST 1996-1847

________________________________________________________________________
________________________________________________________

This serves as notice to the public of the action described below, taken
by the Department official indicated (no additional confirming order
will be issued in this matter).

Applicant:  AEROPYCSA, S.A. de C.V.
                              Date Filed:  February 24, 2003

Relief requested:  Exemption from 49 USC section 41301 to permit the
applicant to continue to conduct passenger charter operations between
Mexico and the United States, and other passenger charters in accordance
with 14 CFR Part 212, using small equipment.

If renewal, date and citation of last action:  May 10, 2002, in this
Docket.

Applicant representative:  Irwin P. Altschuler,<PHONE_NUMBER>         DOT
analyst:  Allen Brown,<PHONE_NUMBER>

Responsive pleadings:  None.

	DISPOSITION

Action:  Approved
                                               Action date:  May 1, 2003

Effective dates of authority granted:  May 1, 2003, through May 10, 2004

Basis for approval (bilateral agreement/reciprocity):  United
States-Mexico Air Transport Services Agreement of August 15, 1960, as
amended and extended (Agreement).

Except to the extent exempted/waived, this authority is subject to the
terms, conditions, and limitations indicated:

     X  Standard exemption conditions.

Special conditions/Partial grant/Denial basis/Remarks:  In the conduct
of these operations, the carrier must adhere to all applicable
provisions of the U.S.-Mexico Agreement.  In the conduct of these
operations, the carrier may only use aircraft capable of carrying no
more than 60 passengers and having a maximum payload capacity of no more
than 18,000 pounds (small equipment).  The above grant includes
authority to conduct Third and Fourth Freedom charter operations.  While
we have subjected, consistent with the provisions of the Agreement,
Mexican carriers conducting charter operations with large aircraft to
prior approval or submission of notice for their Third and Fourth
Freedom charters, we determined that any such requirement was not
necessary on public interest grounds in this case, since the carrier
will be conducting these operations solely with small aircraft.  (Other
charter operations to/from the United States under this authority,
however, are subject to prior approval under 14 CFR Part 212.)  Further,
we are continuing to allow Mexican carriers conducting passenger
charters using small equipment to make stopovers in the United States in
the conduct of such operations.

Action taken by:   Paul L. Gretch, Director

		      Office of International Aviation

________________________________________________________________________
________________________________________________________

Under authority assigned by the Department in its regulations, 14 CFR
Part 385, we found that (1) our action was consistent with Department
policy; (2) the applicant was qualified to perform its proposed
operations; (3) grant of the authority was consistent with the public
interest; and (4) grant of the authority would not constitute a major
regulatory action under the Energy Policy and Conservation Act of 1975.
To the extent not granted/deferred/dismissed, we denied all requests in
the referenced Docket.  We may amend, modify, or revoke the authority
granted in this Notice at any time without hearing at our discretion.

Persons entitled to petition the Department for review of the action set
forth in this Notice under the Department’s regulations, 14 CFR
§385.30, may file their petitions within seven (7) days after the date
of issuance of this Notice.  This action was effective when taken, and
the filing of a petition for
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[Federal Register: March 15, 2007 (Volume 72, Number 50)]
[Notices]
[Page 12233-12238]
[DOCID:fr15mr07-112]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55437; File No. SR-Amex-2006-118]

Self-Regulatory Organizations; American Stock Exchange LLC;
Notice of Filing of Amendment Nos. 2 and 3 to Proposed Rule Change
Relating to Generic Listing Standards for Series of Portfolio
Depositary Receipts and Index Fund Shares Based on Fixed Income Indexes
and Accelerated Approval of Proposed Rule Change as Amended

March 9, 2007.

I. Introduction

    On December 22, 2006, the American Stock Exchange LLC (``Amex'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change relating to generic listing standards for series
of portfolio depositary receipts (``PDRs'') and index fund shares
(``IFSs''), together referred to as ``exchange-traded funds''
(``ETFs''), based on fixed income indexes. On January 26, 2007, the
Exchange filed Amendment No. 1. The proposed rule change, as amended,
was published for comment in the Federal Register on February 7, 2007
for a 15-day comment period.\3\ The Commission received no comments on
the proposal. On March 2, 2007, Amex filed Amendment No. 2 to the
proposed rule change \4\ and on March 7, 2007, Amex filed Amendment No.
3 to the proposed rule change.\5\ This order provides notice of the
proposed rule change as modified by Amendments No. 1, 2, and 3 and
approves the proposed rule change as amended on an accelerated basis.
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    \1\ 15 U.S.C. 78s(b)(l).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 55213 (January 31,
2007), 72 FR 5768 (``Notice'').
    \4\ In Amendment No. 2, the Exchange (1) Updated its proposal to
reflect the migration of ETF shares from Amex's legacy platform to
the AEMI platform and (2) represented that an ETF based on a fixed
income index or combination index would be covered under the
Exchange's existing surveillance program for ETFs and that all
products listed under the proposed generic listing standards would
be subject to the full panoply of Amex rules and procedures that now
govern the trading of ETFs on Amex.
    \5\ In Amendment No. 3, the Exchange revised proposed Commentary
.06(g) to Rule 1000-AEMI and proposed Commentary .05(g) to Rule
1000A-AEMI to clarify that Rule 1000-AEMI and Rules 1001 through
1006 as well as Rule 1000A-AEMI and Rules 1001A through 1005A apply
to the listing and trading of fixed income and combination index
ETFs.
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II. Description of the Proposal

    The Exchange proposes to revise Amex Rules 1000-AEMI and 1000A-AEMI
to include generic listing standards to permit the listing and trading
of ETFs that are based on indexes or portfolios consisting of fixed
income securities (``Fixed Income Indexes'') or both fixed income and
equity securities (``Combination Indexes'') pursuant to Rule 19b-4(e)
under the Act.\6\ Specifically, the Exchange proposes to add
Commentaries .04, .05, and .06 to Amex Rule 1000-AEMI and Commentaries
.03, .04, and .05 to Amex Rule 1000A-AEMI and to revise the definitions
of PDR and IFS, in Amex Rules 1000-AEMI(b)(1) and 1000A-AEMI(b)(1),
respectively, to include ETFs based on Fixed Income Indexes and
Combination Indexes.
---------------------------------------------------------------------------

    \6\ 17 CFR 240.19b-4(e).
---------------------------------------------------------------------------

    The proposed rule change will enable the Exchange to list and trade
an ETF pursuant to Rule 19b-4(e) under the Act without a rule filing if
each of the conditions set forth in either Commentaries .04 and .05 to
Rule 1000-AEMI or Commentaries .03 and .04 to Rule 1000A-AEMI, as
applicable, is satisfied. The proposed listing standards will apply to
certain Fixed Income Indexes and Combination Indexes that the
Commission has yet to review, as well as those Fixed Income Indexes
described in exchange rules that have previously been approved by the
Commission under Section 19(b)(2) of the Act \7\ for the trading of
ETFs, options, or other index-based securities.\8\
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78s(b)(2).
    \8\ See proposed Commentary .04 to Amex Rule 1000-AEMI and
Commentary .03 to Amex Rule 1000A-AEMI (permitting the Exchange to
list and trade an ETF pursuant to Rule 19b-4(e) provided that the
portfolio or index ``has been reviewed and approved for the trading
of options, Portfolio Depository Receipts, Index Fund Shares, Index-
Linked Exchangeable Notes or Index-Linked Securities by the
Commission under Section 19(b)(2) of the Securities Exchange Act of
1934 and rules thereunder and the conditions set forth in the
Commission's approval order, continue to be satisfied. * * *'').
---------------------------------------------------------------------------

A. Generic Listing Standards

    Rule 19b-4(e) under the Act provides that the listing and trading
of a new derivative securities product by a self-

regulatory organization shall not be deemed a proposed rule change,
pursuant to paragraph (c)(1) of Rule 19b-4,\9\ if the Commission has
approved, pursuant to Section 19(b) of the Act,\10\ the self-regulatory
organization's trading rules, procedures, and listing standards for the
product class that would include the new derivatives securities
product, and the self-regulatory organization has a surveillance
program for the product class.\11\
---------------------------------------------------------------------------

    \9\ 17 CFR 240.19b-4(c)(1).
    \10\ 15 U.S.C. 78s(b).
    \11\ See Securities Exchange Act Release No. 40761 (December 8,
1998), 63 FR 70952 (December 22, 1998) (``New Products Release'').
---------------------------------------------------------------------------

    The Exchange already has Commission-approved generic listing
standards for ETFs based on indexes that consist of stocks listed on
U.S. and non-U.S. exchanges,\12\ for trust certificates linked to
certain Fixed Income Securities,\13\ and for other index-based
derivatives.\14\ The Commission has also approved for listing and
trading on the Exchange ETFs based on certain Fixed Income Indexes \15\
and structured notes linked to a basket or index of Fixed Income
Securities.\16\ This proposal seeks to adopt listing standards, trading
rules, and procedures, including surveillance, for ETFs based on Fixed
Income and Combination Indexes that generally reflect existing generic
listing standards for ETFs based on equities, but are tailored for the
fixed income markets.\17\
---------------------------------------------------------------------------

    \12\ See Securities Exchange Act Release Nos. 54739 (November 9,
2006), 71 FR 66993 (November 17, 2006) (for ETFs based on global and
international indexes); and 42787 (May 15, 2000), 65 FR 33598 (May
24, 2000) (for ETFs based on indexes comprised of U.S. stocks).
    \13\ See Securities Exchange Act Release No. 50355 (September
13, 2004), 69 FR 56252 (September 20, 2004) (approving generic
listing standards for trust certificates linked to portfolios of
investment-grade debt securities, securities of government-sponsored
entities, and U.S. Treasury securities).
    \14\ See Amex Company Guide Section 107D (Index-Linked
Securities); Securities Exchange Act Release No. 51563 (April 15,
2005), 70 FR 21257 (April 25, 2005). Such listing standards permit
the listing--pursuant to Rule 19b-4(e) under the Act--of such
securities where the Commission had previously approved the trading
of specified index-based derivatives on the same index, on the
condition that all of the standards set forth in the original order
are satisfied by the exchange employing generic listing standards.
    \15\ See Securities Exchange Act Release Nos. 46252 (July 24,
2002), 67 FR 49715 (July 31, 2002) (approving the listing and
trading of funds based on U.S. Treasury or corporate bond indexes);
46738 (October 29, 2002), 67 FR 67666 (November 6, 2002) (approving
the listing and trading of FITRs); and 52870 (December 1, 2005), 70
FR 73039 (December 8, 2005) (approving the trading on a UTP basis of
the iShares Lehman TIPS Bond Fund).
    \16\ See Securities Exchange Act Release Nos. 41334 (April 27,
1999), 64 FR 23883 (May 4, 1999) (approving the listing and trading
of Bond Indexed Term Notes); 46923 (November 27, 2002), 67 FR 72247
(December 4, 2002) (approving the listing and trading of trust units
linked to a basket of investment-grade fixed income securities); and
48484 (September 11, 2003), 68 FR 54508 (September 17, 2003)
(approving the listing and trading of trust certificates linked to a
basket of up to five investment-grade fixed income securities plus
U.S. Treasury securities).
    \17\ The failure of a particular ETF to comply with the proposed
generic listing standards would not preclude the Exchange from
submitting a separate rule change pursuant to Section 19(b)(2) of
the Act to list and trade the ETF.
---------------------------------------------------------------------------

B. Exchange-Traded Funds

    Amex Rules 1000-AEMI and Rules 1001 et seq. allow for the listing
and trading on the Exchange of PDRs. A PDR represents an interest in a
unit investment trust registered under the Investment Company Act of
1940 (the ``1940 Act'') \18\ that operates on an open-end basis and
holds the securities that comprise an index or portfolio. Amex Rules
1000A-AEMI and 1001A et seq. provide standards for listing IFSs, which
are securities issued by an open-end management investment company
(i.e., an open-end mutual fund) based on a portfolio of securities that
seeks to provide investment results that correspond generally to the
price and yield performance or total return performance of a specified
foreign or domestic stock index or fixed income index. Pursuant to
these rules, ETF shares must be issued in a specified aggregate minimum
number in return for a deposit of specified securities and/or a cash
amount, with a value equal to the next-determined net asset value
(``NAV''). When aggregated in the same specified minimum number, ETF
shares must be redeemed by the issuer for the securities and/or cash,
with a value equal to the next-determined NAV. Consistent with Amex
Rules 1002 and 1002A, the NAV is calculated once a day after the close
of the regular trading day.
---------------------------------------------------------------------------

    \18\ 15 U.S.C. 80a.
---------------------------------------------------------------------------

    To meet the investment objective of providing investment returns
that correspond to the performance of the underlying index, an ETF may
use a ``replication'' strategy or a ``representative sampling''
strategy with respect to the ETF portfolio. An ETF using a replication
strategy invests in each component security of the underlying index in
about the same proportion as that security is represented in the index
itself. An ETF using a representative sampling strategy generally
invests in a significant number, but perhaps not all, of the component
securities of the underlying index, and holds securities that, in the
aggregate, are intended to approximate the full index in terms of
certain key characteristics. In the context of a fixed income index,
such characteristics may include liquidity, duration, maturity, and
yield.
    In addition, an ETF portfolio may be adjusted in accordance with
changes in the composition of the underlying index or to maintain
compliance with requirements applicable to a regulated investment
company under the Internal Revenue Code (``IRC'').

C. Listing and Trading of ETFs Based on Fixed Income Indexes or Fixed
Income Securities

    Proposed Commentary .04 to Amex Rule 1000-AEMI and Commentary .03
to Amex Rule 1000A-AEMI define the term ``Fixed Income Securities'' to
include notes, bonds (including convertible bonds), debentures, or
evidence of indebtedness that include, but are not limited to, U.S.
Treasury securities (``Treasury Securities''), securities of
government-sponsored entities (``GSE Securities''), municipal
securities, trust-preferred securities,\19\ supranational debt,\20\ and
debt of a foreign country or subdivision thereof. For purposes of the
proposed definition, a convertible bond is deemed to be a Fixed Income
Security until it is converted into its underlying common or preferred
stock.\21\ Once converted, the equity security may no longer continue
as a component of a fixed income index under the proposed rules and,
accordingly, would have to be removed from such index for the ETF to
remain listed pursuant to proposed Commentary .04 to Amex Rule 1000-
AEMI or Commentary .03 to Amex Rule 1000A-AEMI.
---------------------------------------------------------------------------

    \19\ Trust-preferred securities are undated cumulative
securities issued from a special purpose trust in which a bank or
bank holding company owns all of the common securities. The trust's
sole asset is a subordinated note issued by the bank or bank holding
company. Trust preferred securities are treated as debt for tax
purposes so that the distributions or dividends paid are a tax-
deductible interest expense.
    \20\ Supranational debt represents the debt of international
organizations such as the World Bank, the International Monetary
Fund, regional multilateral development banks, and multilateral
financial institutions. Examples of regional multilateral
development banks include the African Development Bank, Asian
Development Bank, European Bank for Reconstruction and Development,
and the Inter-American Development Bank. In addition, examples of
multilateral financial institutions include the European Investment
Bank and the International Fund for Agricultural Development.
    \21\ Under the Section 3(a)(11) of the Act, 15 U.S.C.
78c(a)(11), a convertible security is an equity security. However,
for the purposes of the proposed generic listing criteria, Amex
believes that defining a convertible security (prior to its
conversion) as a Fixed Income Security is consistent with the
objectives and intention of the generic listing standards for fixed-
income-based ETFs as well as the Act.

---------------------------------------------------------------------------

Fixed Income Index Criteria
    To list an ETF pursuant to the proposed generic listing standards
for Fixed Income Indexes, the index underlying the ETF must satisfy all
the conditions contained in proposed Commentary .04 to Amex Rule 1000-
AEMI (for PDRs) or proposed Commentary .03 to Amex Rule 1000A-AEMI (for
IFSs). As with existing generic listing standards for ETFs based on
domestic and international or global indexes, these listing criteria
are designed to ensure that securities with substantial market
distribution and liquidity account for a substantial portion of the
weight of a Fixed Income Index.\22\
---------------------------------------------------------------------------

    \22\ The Exchange noted in its proposal that the index criteria
are loosely based on the standards contained in Commission and
Commodity Futures Trading Commission (``CFTC'') rules regarding the
application of the definition of narrow-based security index to debt
security indexes. See Securities Exchange Act Release No. 54106
(July 6, 2006), 71 FR 39534 (July 13, 2006) (File No. S7-07-06) (the
``Joint Rules'').
---------------------------------------------------------------------------

    To list an ETF based on a Fixed Income Index pursuant to the
proposed generic listing standards, the index must meet the following
criteria:
     The index or portfolio must consist of Fixed Income
Securities;
     Components that in aggregate account for at least 75% of
the weight of the index or portfolio must have a minimum original
principal amount outstanding of $100 million or more; \23\
---------------------------------------------------------------------------

    \23\ This is virtually identical to the corresponding standard
in Section 107E(a)(x) of the Amex Company Guide for trust
certificates.
---------------------------------------------------------------------------

     No component Fixed Income Security (excluding a Treasury
Security) represents more than 30% of the weight of the index, and the
five highest weighted component fixed income securities in the index do
not in the aggregate account for more than 65% of the weight of the
index; \24\
---------------------------------------------------------------------------

    \24\ This is consistent with the standard for U.S. equity ETFs
set forth in Commentary .03(a)(A) to Amex Rule 1000-AEMI and
Commentary .02(a)(A) to Amex Rule 1000A-AEMI and the standard set
forth by the Commission and the CFTC in the Joint Rules. See note 22
supra.
---------------------------------------------------------------------------

     An underlying index or portfolio (excluding one consisting
entirely of exempted securities) must include a minimum of 13 non-
affiliated issuers; \25\ and
---------------------------------------------------------------------------

    \25\ The required number of unaffiliated issuers parallels the
diversification requirement applicable to U.S. equity ETFs as set
forth in Commentary .03(a)(A) to Amex Rule 1000-AEMI and Commentary
.02(a)(A) to Amex Rule 1000A-AEMI.
---------------------------------------------------------------------------

     Component securities that in aggregate account for at
least 90% of the weight of the index or portfolio must be either: \26\
---------------------------------------------------------------------------

    \26\ The Exchange notes that this proposed standard is
consistent with a similar standard in the Joint Rules and is
designed to ensure that the component fixed income securities have
sufficient publicly available information.
---------------------------------------------------------------------------

     From issuers that are required to file reports pursuant to
Sections 13 and 15(d) of the Act; \27\
---------------------------------------------------------------------------

    \27\ 15 U.S.C. 78m and 78o(d).
---------------------------------------------------------------------------

     From issuers that have a worldwide market value of its
outstanding common equity held by non-affiliates of $700 million or
more;
     From issuers that have outstanding securities that are
notes, bonds, debentures, or evidences of indebtedness having a total
remaining principal amount of at least $1 billion;
     Exempted securities, as defined in Section 3(a)(12) of the
Act; \28\ or
---------------------------------------------------------------------------

    \28\ 15 U.S.C. 78c(a)(12).
---------------------------------------------------------------------------

     From issuers that are governments of foreign countries or
political subdivisions of foreign countries.
    The proposed generic listing requirements for ETFs based on Fixed
Income Indexes would not require that component securities in an
underlying index have an investment-grade rating.\29\ In addition, the
proposed requirements would not require a minimum trading volume, due
to the lower trading volume that generally occurs in the fixed income
markets as compared to the equity markets.\30\ Also, consistent with
the existing Amex Rule 1000A-AEMI(b)(2)(iii), an IFS based on a Fixed
Income Index or Combination Index that seeks to provide investment
results that either exceed the performance of such underlying index or
correspond to the inverse (opposite) of the performance of such index
by a specified multiple may not be listed and traded pursuant to the
proposed generic listing standards.
---------------------------------------------------------------------------

    \29\ See Joint Rules, supra note 22, 71 FR at 30537.
    \30\ In its proposal, the Exchange stated its view that the
minimum principal amount outstanding requirement of $100 million,
coupled with the proposed concentration requirements, would reduce
the likelihood that an ETF listed under the proposal would be
readily susceptible to manipulation.
---------------------------------------------------------------------------

D. Listing and Trading of ETFs Based on Combination Indexes

    To list an ETF pursuant to the proposed generic listing standards
for Combination Indexes, an index underlying the ETF must satisfy all
the conditions contained in proposed Commentary .05 to Amex Rule 1000-
AEMI (for PDRs) or proposed Commentary .04 to Amex Rule 1000A-AEMI (for
IFSs). As with ETFs based solely on Fixed Income Indexes, the generic
listing standards are intended to ensure that securities with
substantial market distribution and liquidity account for a substantial
portion of the weight of both the equity and fixed income portions of a
Combination Index.
    The proposed rules provide that the Exchange may list and trade
ETFs based on a combination of indexes or a series of component
securities representing the U.S. or domestic equity market, the
international equity market, and the fixed income market, pursuant to
Rule 19b-4(e) under the Act, provided that: (i) Such portfolio or
combination of indexes has been described in an exchange rule approved
by the Commission for the trading of options, PDRs, IFSs, Index-Linked
Exchangeable Notes, or Index-Linked Securities, and all of the
standards set forth in the approval order are satisfied by the exchange
employing generic listing standards; or (ii) the equity portion and
fixed income portion of the component securities separately meet the
criteria set forth in Commentary .03 (equities) and proposed Commentary
.04 (fixed income) for PDRs and Commentary .02 (equities) and proposed
Commentary .03 (fixed income) for IFSs.\31\
---------------------------------------------------------------------------

    \31\ See proposed Commentary .05 to Amex Rule 1000-AEMI and
Commentary .04 to Amex Rule 1000A-AEMI.
---------------------------------------------------------------------------

E. Index Maintenance and Information

    The Exchange proposes to adopt Commentaries .04(b) and .05(a) to
Amex Rule 1000-AEMI and Commentaries .03(b) and .04(a) to Amex Rule
1000A-AEMI to establish requirements regarding the maintenance and
dissemination of index information in connection with ETFs based on
Fixed Income Indexes and Combination Indexes.
    Commentaries .04(b)(ii) and .05(a)(ii) to Amex Rule 1000-AEMI and
Commentaries .03(b)(ii) and .04(a)(ii) to Amex Rule 1000A-AEMI would
require that the underlying value of a Fixed Income Index be widely
disseminated by one or more major market data vendors at least once a
day during the time when the corresponding ETF trades on the Exchange.
The rules also require that the underlying value of a Combination Index
be widely disseminated by one or more major market data vendors at
least once every 15 seconds during the time when the corresponding ETF
trades on the Exchange, provided that, with respect to the fixed income
components of the Combination Index, their impact on the index is
required to be updated only once each day. In its proposal, the
Exchange stated that these provisions reflect the nature of the fixed
income markets as well as the frequency of intra-day trading
information with respect to Fixed Income Securities. If

the index value does not change during some or all of the period when
trading is occurring on the Exchange, the last official calculated
index value must remain available throughout Exchange trading hours.
    Moreover, if a Fixed Income Index or Combination Index underlying
an ETF is maintained by broker-dealer or fund advisor, the broker-
dealer or fund advisor shall erect a ``firewall'' around the personnel
who have access to information concerning changes and adjustments to
the index. In addition, any advisory committee, supervisory board, or
similar entity that advises a Reporting Authority or that makes
decisions on index composition, methodology, and related matters, must
implement and maintain, or be subject to, procedures designed to
prevent the use and dissemination of material non-public information
regarding the index.

F. Application of General Rules

    Proposed Commentary .06 to Amex Rule 1000-AEMI and Commentary .05
to Amex Rule 1000A-AEMI set forth requirements governing any ETF based
on a Fixed Income Index or Combination Index. These include initial
shares outstanding, minimum price variation, listing fees, surveillance
procedures, the application of PDR or IFS rules (as applicable), and
the dissemination of the Intraday Indicative Value, which is an
estimate of the value of a share of each ETF, updated at least every 15
seconds.

G. ETF Listing Criteria, Trading Rules, and Procedures

    Under the Exchange's proposal, an ETF based on a Fixed Income Index
or Combination Index would be subject to the listing criteria set out
in Amex Rules 1002 and 1002A. Accordingly, an ETF's NAV must be
calculated at least once each day and disseminated to all market
participants at the same time.\32\ Also, where the value of the
underlying index or portfolio of securities on which the ETF is based
is no longer calculated or available, or if the ETF chooses to
substitute a new index or portfolio for the existing index or
portfolio, the Exchange would commence delisting proceedings if the new
index or portfolio does not meet the requirements of and listing
standards set forth in Amex Rules 1000-AEMI and Rules 1001 et seq. or
Amex Rules 1000A-AEMI and 1001A et seq., as applicable. If an ETF chose
to substitute an index that did not meet any of Amex's generic listing
standards, approval by the Commission of a separate filing pursuant to
Section 19(b)(2) of the Act to list and trade that ETF would be
required.
---------------------------------------------------------------------------

    \32\ See Amex Rules 1002(a)(ii) and 1002A(a)(ii) (requiring
that, before approving an ETF for listing, the Exchange will obtain
a representation from the ETF issuer that the NAV per share will be
calculated daily and made available to all market participants at
the same time).
---------------------------------------------------------------------------

    An ETF based on a Fixed Income Index or Combination Index would be
traded, in all respects, under the Exchange's existing trading rules
and procedures that apply to ETFs generally, including with respect to
delisting and trading halts.\33\ In particular, Amex Rules 1002(b)(ii)
and 1002A(b)(ii) provide that, if the Intraday Indicative Value or the
index value applicable to that series of ETFs is not being disseminated
as required, the Exchange may halt trading during the day in which the
interruption to the dissemination of the Intraday Indicative Value or
the index value occurs. If the interruption to the dissemination of the
Intraday Indicative Value or the index value persists past the trading
day in which it occurred, the Exchange would halt trading no later than
the beginning of the trading day following the interruption.\34\
---------------------------------------------------------------------------

    \33\ See Amex Rules 1000-AEMI and 1001 through 1006 and Amex
Rules 1000A-AEMI and 1001A through 1005A.
    \34\ If an ETF is traded on the Exchange pursuant to unlisted
trading privileges, the Exchange would halt trading if the primary
listing market halts trading in such ETF because the Intraday
Indicative Value and/or the index value is not being disseminated.
See Amex Rules 1002(b)(ii) and 1002A(b)(ii).
---------------------------------------------------------------------------

    As noted above, if a broker-dealer is responsible for maintaining
(or has a role in maintaining) the underlying index, such broker-dealer
would be required to erect and maintain a ``firewall,'' in a form
satisfactory to the Exchange, to prevent the flow of non-public
information regarding the underlying index from the personnel involved
in the development and maintenance of such index to others such as
sales and trading personnel.

H. Surveillance

    The Exchange represents that an ETF based on a Fixed Income Index
or Combination Index would be covered under the Exchange's surveillance
program for ETFs.\35\ The Exchange will implement written surveillance
procedures for an ETF based on a Fixed Income Index or a Combination
Index.\36\ The Exchange represents that its surveillance procedures are
adequate to properly monitor the trading of ETFs listed pursuant to the
proposed new listing standards. In addition, the Exchange also has a
general policy prohibiting the distribution of material, non-public
information by its employees.
---------------------------------------------------------------------------

    \35\ See Amendment No. 2.
    \36\ See proposed Commentary .06(f) to Amex Rule 1000-AEMI and
Commentary .05(f) to Amex Rule 1000A-AEMI.
---------------------------------------------------------------------------

III. Discussion and Commission Findings

    After careful review, the Commission finds that the proposed rule
change, as amended, is consistent with the Act and the rules and
regulations thereunder applicable to a national securities
exchange.\37\ In particular, the Commission believes that the proposal
is consistent with Section 6(b)(5) of the Act \38\ 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, 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.
---------------------------------------------------------------------------

    \37\ In approving this proposal, the Commission has considered
its impact on efficiency, competition, and capital formation. See 15
U.S.C. 78c(f).
    \38\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    Currently, the Exchange must file a proposed rule change with the
Commission pursuant to Section 19(b)(1) of the Act \39\ and Rule 19b-4
thereunder \40\ to list or trade any ETF based on Fixed Income
Securities. The Exchange also must file a proposed rule change to list
or trade an ETF based on a Fixed Income or Combination Index described
in an exchange rule previously approved by the Commission as an
underlying benchmark for a derivative security. Rule 19b-4(e), however,
provides that the listing and trading of a new derivative securities
product by an SRO will not be deemed a proposed rule change pursuant to
Rule 19b-4(c)(1) if the Commission has approved, pursuant to Section
19(b) of the Act, the SRO's trading rules, procedures, and listing
standards for the product class that would include the new derivative
securities product, and the SRO has a surveillance program for the
product class. The Exchange's proposed rules for the listing and
trading of ETFs pursuant to Rule 19b-4(e) based on (1) certain indexes
with components that include Fixed Income Securities or (2) indexes or
portfolios described in exchange rules previously approved by the
Commission as underlying benchmarks for derivative securities fulfill
these requirements. Use of Rule 19b-4(e) by Amex to list and trade such
ETFs should promote

competition, reduce burdens on issuers and other market participants,
and make such ETFs available to investors more quickly.\41\
---------------------------------------------------------------------------

    \39\ 15 U.S.C. 78s(b)(1).
    \40\ 17 CFR 240.19b-4.
    \41\ The Commission notes that failure of a particular ETF to
satisfy the Exchange's generic listing standards does not preclude
the Exchange from submitting a separate proposal to list and trade
such ETF.
---------------------------------------------------------------------------

    The Commission has previously approved generic listing standards
for ETFs based on indexes that consist of stocks listed on U.S. and
non-U.S. exchanges, as well as for other index-based derivatives.\42\
The Commission has also approved for listing and trading ETFs based on
certain fixed income indexes and structured notes linked to a basket or
index of Fixed Income Securities.\43\ The Commission believes that
adopting additional generic listing standards for ETFs based on Fixed
Income and Combination Indexes should fulfill the intended objective of
that rule by allowing those ETFs that satisfy the proposed generic
listing standards to commence trading without a rule filing. Taken
together, the Commission finds that the Amex proposal meets the
requirements of Rule 19b-4(e). All products listed under the proposed
generic listing standards will be subject to existing Amex rules that
governing the trading of ETFs.
---------------------------------------------------------------------------

    \42\ See notes 12-14 supra. The Commission notes that such
listing standards permit an exchange to list new derivative
securities pursuant to Rule 19b-4(e) under the Act based on
portfolios or indexes that underlie securities described in other
previously approved rules, subject to the condition that all of the
standards set forth in the approval order are satisfied by the
exchange employing generic listing standards.
    \43\ See notes 15-16 supra.
---------------------------------------------------------------------------

    Proposed Commentary .04 to Amex Rule 1000-AEMI (for PDRs) and
proposed Commentary .03 to Amex Rule 1000A-AEMI (for IFSs) establish
the standards for the composition of a Fixed Income Index or
Combination Index underlying an ETF. These requirements are designed,
among other things, to require that components of an index or portfolio
underlying the ETF are adequately capitalized and sufficiently liquid,
and that no one security dominates the index. The Commission believes
that these standards are reasonably designed to ensure that a
substantial portion of any underlying index or portfolio consists of
securities about which information is publicly available, and that when
applied in conjunction with the other applicable listing requirements,
will permit the listing and trading only of ETFs that are sufficiently
broad-based in scope to minimize potential manipulation. The Commission
further believes that the proposed listing standards are reasonably
designed to preclude Amex from listing and trading ETFs that might be
used as a surrogate for trading in unregistered securities.
    The proposed generic listing standards also will permit Amex to
list and trade an ETF if the Commission previously has approved an
exchange rule that contemplates listing and trading a derivative
security based on the same underlying index. Amex would be able to rely
on that earlier approval order, provided that Amex complies with the
commitments undertaken by the other SRO set forth in the prior order,
including any surveillance-sharing arrangements.
    The Commission believes that Amex's proposal is consistent with
Section 11A(a)(1)(C)(iii) of the Act,\44\ 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. Under the Exchange's proposed listing standards, the
underlying value of a Fixed Income Index is required to be widely
disseminated by one or more major market data vendors at least once a
day during the time when the corresponding ETF trades on the Exchange.
Likewise, the underlying value of a Combination Index is required to be
widely disseminated by one or more major market data vendors at least
once every 15 seconds during the time when the corresponding ETF trades
on the Exchange, provided that, with respect to the fixed income
components of the Combination Index, the impact on the index is
required to be updated only once each day.
---------------------------------------------------------------------------

    \44\ 15 U.S.C. 78k-1(a)(1)(C)(iii).
---------------------------------------------------------------------------

    Furthermore, the Commission believes that the proposed rules are
reasonably designed to promote fair disclosure of information that may
be necessary to price an ETF appropriately. If a Fixed Income Index or
Combination Index underlying such an ETF is maintained by a broker-
dealer or fund advisor, that entity must erect a firewall around the
personnel who have access to information concerning changes and
adjustments to the index. Any advisory committee, supervisory board, or
similar entity that advises a Reporting Authority or that makes
decisions on index composition, methodology, or related matters must
implement and maintain, or be subject to, procedures designed to
prevent the use and dissemination of material non-public information
regarding the index. The Commission also notes that existing Amex Rules
1002(a)(ii) and 1002A(a)(ii), which would apply to an ETF listed and
traded pursuant to this proposal, require that, before approving an ETF
for listing, the Exchange will obtain a representation from the ETF
issuer that the NAV per share will be calculated daily and made
available to all market participants at the same time.
    The Commission also believes that the Exchange's trading halt rules
are reasonably designed to prevent trading in an ETF when transparency
cannot be assured. Amex Rules 1002(b)(ii) and 1002A(b)(ii) provide
that, if the Intraday Indicative Value or the index value applicable to
an ETF is not disseminated as required, the Exchange may halt trading
during the day in which the interruption occurs. If the interruption
continues, the Exchange will halt trading no later than the beginning
of the next trading day.\45\ Also, the Exchange will commence delisting
proceedings in the event that the value of the underlying index is no
longer calculated and widely disseminated on at least a 15-second basis
(for Combination Indexes) or at least once a day (for Fixed Income
Indexes).
---------------------------------------------------------------------------

    \45\ If an ETF is traded on the Exchange pursuant to unlisted
trading privileges, the Exchange would halt trading if the primary
listing market halts trading in such ETF because the Intraday
Indicative Value and/or the index value is not being disseminated.
See Amex Rules 1002(b)(ii) and 1002A(b)(ii).
---------------------------------------------------------------------------

    The Exchange will implement written surveillance procedures for
ETFs based on a Fixed Income Indexes or Combination Indexes.\46\ In
approving this proposal, the Commission has relied on the Exchange's
representation that its surveillance procedures are adequate to
properly monitor the trading of ETFs listed pursuant to this proposal.
This approval order is conditioned on the continuing accuracy of that
representation.
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    \46\ See proposed Commentary .06(f) to Amex Rule 1000-AEMI and
Commentary .05(f) to Amex Rule 1000A-AEMI.
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Acceleration
    The Commission finds good cause to approve the proposal, as
amended, prior to the thirtieth day after the amended proposal was
published for comment in the Federal Register. The Commission believes
that accelerating approval of the proposed rule change will expedite
the listing and trading of additional ETFs based on Fixed Income and
Combination Indexes by the Exchange, subject to consistent and
reasonable standards. The Commission also notes that no comments were
received during the abbreviated comment period, and

that Amendments No. 2 and 3 do not make any substantial changes to the
proposal. Thus, the Commission finds good cause, consistent with
Section 19(b)(2) of the Act,\47\ to grant accelerated approval of the
proposed rule change, as amended.
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    \47\ 15 U.S.C. 78s(b)(2).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and
arguments regarding Amendments No. 2 and 3, including whether
Amendments No. 2 and 3 are 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<EMAIL_ADDRESS>Please include

File Number SR-Amex-2006-118 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-Amex-2006-118. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml
). Copies of the submission, all subsequent amendments, all

written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for inspection and
copying in the Commission's Public Reference Room. Copies of such
filing also will be available for inspection and copying at the
principal office of 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-2006-118 and should be submitted on or before April 5, 2007.

V. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\48\ that the proposed rule change (SR-Amex-2006-118), as amended,
be, and hereby is, approved on an accelerated basis.
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    \48\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\49\
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    \49\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-4747 Filed 3-14-07; 8:45 am]

BILLING CODE 8010-01-P