[Federal Register: January 31, 2007 (Volume 72, Number 20)]
[Notices]
[Page 4502-4503]
[DOCID:fr31ja07-48]

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ENVIRONMENTAL PROTECTION AGENCY

[EPA-HQ-OPPT-2003-0004; FRL-8112-1]

Access to Confidential Business Information by Lockheed-Martin
Services, Inc.

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

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SUMMARY: EPA has authorized its contractor, Lockheed-Martin Services,
Inc. of Cherry Hill, NJ and its subcontractors, to access information
which has been submitted to EPA under section(s) 4, 5, 6, 7, 8, 12, and
13 of the Toxic Substances Control Act (TSCA). Some of the information
may be claimed or determined to be Confidential Business Information
(CBI).

DATES: Access to the confidential data will occur no sooner than March
2, 2007.

FOR FURTHER INFORMATION CONTACT: For general information contact: Colby
Lintner, Regulatory Coordinator, Environmental Assistance Division
(7408M), Office of Pollution Prevention and Toxics, Environmental
Protection Agency, 1200 Pennsylvania Ave., NW., Washington, DC 20460-
0001; telephone number:<PHONE_NUMBER>; e-mail address:
<EMAIL_ADDRESS>
    For technical information contact: Pam Moseley, Information
Management Division (7407M), Office of Pollution Prevention and Toxics,
Environmental Protection Agency, 1200 Pennsylvania Ave., NW.,
Washington, DC 20460-0001; telephone number:<PHONE_NUMBER>; fax number:
202-564-8955; e-mail address<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

I. General Information

A. Does this Notice Apply to Me?

    This action is directed to the public in general. This action may,
however, be of interest to those persons who are or may be required to
conduct testing of chemical substances under the TSCA. Since other
entities may also be interested, the Agency has not attempted to
describe all the specific entities that may be affected by this action.
If you have any questions regarding the applicability of this action to
a particular entity, consult the technical person listed under FOR
FURTHER INFORMATION CONTACT.

B. How Can I Get Copies of this Document and Other Related Information?

    1. Docket. EPA has established a docket for this action under
docket ID number EPA-HQ-OPPT-2003-0004. Publicly available docket
materials are available electronically at http://www.regulations.gov

or, if only available in hard copy, at the OPPT Docket in the EPA
Docket Center (EPA/DC). The EPA/DC suffered structural damage due to
flooding in June 2006. Although the EPA/DC is continuing operations,
there will be temporary changes to the EPA/DC during the clean-up. The
EPA/DC Public Reading Room, which was temporarily closed

due to flooding, has been relocated in the EPA Headquarters Library,
Infoterra Room (Room Number 3334) in the EPA West Building, located at
1301 Constitution Ave., NW., Washington, DC. The EPA/DC 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 EPA/DC Public
Reading Room is<PHONE_NUMBER>, and the telephone number for the OPPT
Docket is<PHONE_NUMBER>. EPA visitors are required to show
photographic identification and sign the EPA visitor log. Visitors to
the EPA/DC Public Reading Room will be provided with an EPA/DC badge
that must be visible at all times while in the EPA Building and
returned to the guard upon departure. In addition, security personnel
will escort visitors to and from the new EPA/DC Public Reading Room
location. Up-to-date information about the EPA/DC is on the EPA web
site at http://www.epa.gov/epahome/dockets.htm.

    2. Electronic access. You may access this Federal Register document
electronically through the EPA Internet under the ``Federal Register''
listings at http://www.epa.gov/fedrgstr.

II. What Action is the Agency Taking?

    Under contract number 68-W-04-005, contractor Lockheed-Martin
Services, Inc of 2339 Route 70 West, Floor 3W, Cherry Hill, NJ and its
subcontractors Bearing Point, of 1676 International Drive, McLean, VA;
Intervise, of 12 South Summit Avenue, Suite 100, Gaithersburg, MD;
McDonald Bradley, of 2250 Corporate Park Drive, Suite 500, Herndon, VA;
and Subsidium, of 115 Chester Street, Front Royal, VA; will assist the
Office of Pollution Prevention and Toxics (OPPT) in Management Systems
architecture design, integration, testing and development. They will
also assist with project management, scheduling, and support of the
Enterprise Content Management System (ECMS).
    In accordance with 40 CFR 2.306(j), EPA has determined that under
EPA contract number 68-W-04-005, Lockheed-Martin Services, Inc. and its
subcontractors will require access to CBI submitted to EPA under
section(s) 4, 5, 6, 7, 8, 12, and 13 of TSCA to perform successfully
the duties specified under the contract. Lockheed-Martin Services, Inc.
and its subcontractor personnel will be given access to information
submitted to EPA under section(s) 4, 5, 6, 7, 8, 12, and 13 of TSCA.
Some of the information may be claimed or determined to be CBI.
    EPA is issuing this notice to inform all submitters of information
under section(s) 4, 5, 6, 7, 8, 12, and 13 of TSCA that EPA may provide
Lockheed-Martin Services, Inc. and its subcontractors access to these
CBI materials on a need-to-know basis only. All access to TSCA CBI
under this contract will take place at EPA Headquarters.
    Lockheed-Martin Services, Inc. and its subcontractors will be
authorized access to TSCA CBI at EPA Headquarters under the EPA TSCA
CBI Protection Manual.
    Clearance for access to TSCA CBI under this contract may continue
until January 8, 2009, unless such access is extended.
    Lockheed-Martin Services, Inc. and its subcontractors personnel
will be required to sign nondisclosure agreements and will be briefed
on appropriate security procedures before they are permitted access to
TSCA CBI.

List of Subjects

    Environmental protection, Confidential business information.

    Dated: January 18, 2007.
Brion Cook,
Director, Information Management Division, Office of Pollution
Prevention and Toxics.
[FR Doc. E7-1431 Filed 1-30-07; 8:45 am]

BILLING CODE 6560-50-S


[Federal Register: March 18, 2009 (Volume 74, Number 51)]
[Notices]
[Page 11619-11621]
[DOCID:fr18mr09-91]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. IC-28645; 812-13639]

E*TRADE Capital Markets LLC, et al.; Notice of Application and
Temporary Order

March 12, 2009.
AGENCY: Securities and Exchange Commission (``Commission'').

ACTION: Temporary order and notice of application for a permanent order
under section 9(c) of the Investment Company Act of 1940 (``Act'').

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Summary of Application: Applicants have received a temporary order
exempting them from section 9(a) of the Act, with respect to an
injunction entered against E*TRADE Capital Markets LLC (``ETCM'') on
March 11, 2009, by the United States District Court for the Southern
District of New York (``Injunction'') until the Commission takes final
action on an application for a permanent order. Applicants also have
applied for a permanent order.

Applicants: ETCM, E*TRADE Financial Corporation (``ETFC''), E*TRADE
Asset Management, Inc. (``E*TRADE Asset Management''), E*TRADE
Securities LLC (``E*TRADE Securities'') and Kobren Insight Management,
Inc. (``Kobren'') (collectively, other than ETCM and ETFC, the ``Fund
Servicing Applicants,'' and together, the ``Applicants'').\1\
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    \1\ Applicants request that any relief granted pursuant to the
application also apply to any other company of which ETCM is or
hereafter becomes an affiliated person within the meaning of section
2(a)(3) of the Act (together with the Applicants, the ``Covered
Persons'').

Filing Dates: The application was filed on March 4, 2009 and amended on
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March 12, 2009.

Hearing or Notification of Hearing: An order granting the application
will be issued unless the Commission orders a hearing. Interested
persons may request a hearing by writing to the Commission's Secretary
and serving applicants with a copy of the request, personally or by
mail. Hearing requests should be received by the Commission by 5:30
p.m. on April 6, 2009, and should be accompanied by proof of service on
applicants, in the form of an affidavit or, for lawyers, a certificate
of service. Hearing requests should state the nature of the writer's
interest, the reason for the request, and the issues contested. Persons
who wish to be notified of a hearing may request notification by
writing to the Commission's Secretary.

ADDRESSES: Secretary, U.S. Securities and Exchange Commission, 100 F
Street, NE., Washington, DC 20549-1090; Applicants: ETCM, 440 S.
LaSalle Street, Suite 3030, Chicago, IL 60605; ETFC and E*TRADE
Securities, 135 E. 57th Street, New York, NY 10022; E*TRADE Asset
Management, 4500 Bohannon Drive, Menlo Park, CA 94025; and Kobren, 20
William Street, Suite 200, Wellesley Hills, MA 02481.

FOR FURTHER INFORMATION CONTACT: Jaea F. Hahn, Senior Counsel, at 202-
551-6878 or Julia Kim Gilmer, Branch Chief, at<PHONE_NUMBER> (Division
of Investment Management, Office of Investment Company Regulation).

SUPPLEMENTARY INFORMATION: The following is a temporary order and
summary of the application. The complete application may be obtained
for a fee at the Commission's Public Reference Room, 100 F Street NE.,
Washington DC 20549-1520 (tel.<PHONE_NUMBER>).

Applicants' Representations

    1. ETFC is a global financial services company organized under the
laws of Delaware. Through its subsidiaries and affiliates, ETFC
provides a wide range of financial services including an assortment of
trading, investing, banking and lending products. ETCM is a wholly
owned subsidiary of ETFC and is registered as a broker-dealer under the
Securities Exchange Act of 1934 (``Exchange Act''). ETCM is primarily
engaged in the business of over-the-counter market making activities.
E*TRADE Asset Management and Kobren (together, the ``Adviser
Applicants'') are each a wholly owned subsidiary of ETFC and registered
as an investment adviser under the Investment Advisers Act of 1940.
Each Adviser Applicant currently provides investment management and
advisory services to registered investment companies (``Funds'').
E*TRADE Securities is registered as a broker-dealer under the Exchange
Act and acts as principal underwriter to various open-end Funds.
    2. On March 11, 2009, the United States District Court for the
Southern District of New York entered a judgment, which included the
Injunction, against ETCM (``Judgment'') in a matter brought by the
Commission.\2\ The Commission alleged in the complaint (``Complaint'')
that ETCM violated certain rules of the Chicago Stock Exchange by
engaging in improper trades for its own proprietary accounts by trading
ahead of, instead of matching customer orders, interpositioning and
trading ahead of unexecuted open or cancelled orders. The Complaint
also alleged that ETCM violated section 17(a) of the Exchange Act and
rule 17a-3 thereunder by failing to make or keep a current blotter
containing an itemized daily record of all purchases and sales of
securities effected by ETCM for its proprietary accounts. Without
admitting or denying any of the allegations in the Complaint, ETCM
consented to the entry of the Injunction.
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    \2\ Securities and Exchange Commission v. E*TRADE Capital
Markets LLC. Final Consent Judgment as to E*TRADE Capital Markets
LLC., 09 Civ. 1976 (S.D.N.Y., filed March 11, 2009).
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Applicants' Legal Analysis

    1. Section 9(a)(2) of the Act, in relevant part, prohibits a person
who has been enjoined from engaging in or continuing any conduct or
practice in connection with the purchase or sale of a security, or in
connection with activities as broker or dealer, from acting, among
other things, as an investment adviser or depositor of any registered
investment company or a principal underwriter for any registered open-
end investment company, registered unit investment trust, or registered
face-amount certificate company. Section 9(a)(3) of the Act makes the
prohibition in section 9(a)(2) applicable to a company, any affiliated
person of which has been disqualified under the provisions of section
9(a)(2). Section 2(a)(3) of the Act defines ``affiliated person'' to
include, among others, any person directly or indirectly controlling,
controlled by, or under common control, with the other person.
Applicants state that ETCM is an affiliated person of each of the other
Applicants within the meaning of section 2(a)(3). Applicants state
that, as a result of the Injunction, they would be subject to the
prohibitions of section 9(a).
    2. Section 9(c) of the Act provides that the Commission shall grant
an application for exemption from the disqualification provisions of
section 9(a) of the Act if it is established that these provisions, as
applied to Applicants, are unduly or disproportionately severe or that
the conduct of the Applicants has been such as not to make it against
the public interest or the protection of investors to grant the
exemption. Applicants have filed an application pursuant to section
9(c) seeking a temporary and permanent order exempting the Applicants
and the other Covered Persons from the disqualification provisions of
section 9(a).
    3. Applicants believe that they meet the standards for exemption
specified in section 9(c). Applicants state that the prohibitions of
section 9(a) as applied to them would be unduly and disproportionately
severe and that the conduct of Applicants has been such as not to make
it against the public interest or the protection of investors to grant
the requested exemption from section 9(a).
    4. Applicants state that the alleged conduct giving rise to the
Injunction did not involve any of the Applicants acting in the capacity
of investment adviser, subadviser or depositor or principal underwriter
for any Fund. Applicants also state that none of the current or former
directors, officers, or employees of ETFC and the Fund Servicing
Applicants had any knowledge or involvement in the conduct alleged in
the Complaint. Applicants further state that the personnel at ETCM who
were involved in the violations alleged in the complaint have had no
and will not have any future involvement in providing advisory,
subadvisory, depository or underwriting services to Funds.
    5. Applicants state that the inability of the Adviser Applicants to
provide investment advisory services and E*TRADE Securities to provide
principal underwriter services to Funds would result in potentially
severe financial hardships for the Funds and their shareholders.
Applicants state that they will distribute written materials, including
an offer to meet in person to discuss the materials, to the boards of
trustees of the Funds (the ``Boards''), including the trustees who are
not ``interested persons,'' as defined in section 2(a)(19) of the Act,
of such Funds, and their independent legal counsel as defined in rule
0-1(a)(6) under the Act, if any, of the circumstances that led to the
Injunction, any impact on the Funds, and the application. Applicants
state that they will provide the Boards with all information concerning
the Injunction and the application that is necessary for the Funds to
fulfill their disclosure and other obligations under the federal
securities laws.
    6. Applicants also state that, if the Fund Servicing Applicants
were barred from providing investment advisory services to the Funds,
and underwriting services to open-end Funds and UITs, the effect on
their businesses and employees would be severe. Applicants state that
they have committed substantial resources to establishing advisory and
underwriting expertise. Applicants further state that prohibiting them
from providing advisory and underwriting services would not only
adversely affect their businesses, but

would also adversely affect over 1,500 employees that are involved in
such services.
    7. None of the Applicants have previously received an order under
section 9(c) of the Act.

Applicants' Condition

    Applicants agree that any order granting the requested relief will
be subject to the following condition:
    Any temporary exemption granted pursuant to the application shall
be without prejudice to, and shall not limit the Commission's rights in
any manner with respect to, any Commission investigation of, or
administrative proceedings involving or against, Covered Persons,
including without limitation, the consideration by the Commission of a
permanent exemption from section 9(a) of the Act requested pursuant to
the application or the revocation or removal of any temporary
exemptions granted under the Act in connection with the application.

Temporary Order

    The Commission has considered the matter and finds that the
Applicants have made the necessary showing to justify granting a
temporary exemption.
    Accordingly,
    It is hereby ordered, pursuant to section 9(c) of the Act, that
Applicants and any other Covered Persons are granted a temporary
exemption from the provisions of section 9(a), solely with respect to
the Injunction, subject to the condition in the application, from March
11, 2009, until the Commission takes final action on their application
for a permanent order.

    By the Commission.
Elizabeth M. Murphy,
 Secretary.
 [FR Doc. E9-5785 Filed 3-17-09; 8:45 am]

BILLING CODE 8011-01-P


[Federal Register: December 20, 2006 (Volume 71, Number 244)]
[Notices]
[Page 76409-76414]
[DOCID:fr20de06-145]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54931; File No. SR-NASD-2006-115]

Self-Regulatory Organizations; National Association of Securities
Dealers, Inc.; Notice of Filing and Order Granting Accelerated Approval
to a Proposed Rule Change, as Amended, Relating to an NASD Trade
Reporting Facility Established in Conjunction With the Boston Stock
Exchange

December 13, 2006.

I. Introduction

    On September 29, 2006, the National Association of Securities
Dealers, Inc. (``NASD'') 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 proposal to establish an NASD trade reporting facility
(the ``NASD/BSE TRF'') in conjunction with the Boston Stock Exchange,
Inc. (``BSE''). The proposed rule change was published for comment in
the Federal Register on October 18, 2006.\3\ The Commission received
one comment letter regarding the proposal.\4\ The NASD filed Amendment
No. 1 to the proposed rule change on December 5, 2006.\5\ This

order approves the proposal, as amended, on an accelerated basis. In
addition, the Commission is publishing notice to solicit comments on
the proposed rule change as amended by Amendment No. 1.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 54591 (October 12,
2006), 71 FR 61519.
    \4\ See letter from Alden Adkins, Executive Vice President, BSE,
to Robert Colby, Deputy Director, Division of Market Regulation,
Commission, dated October 24, 2006 (``BSE Letter'').
    \5\ In Amendment No. 1, the NASD revises the proposal to: (1)
Provide notice of final action taken by the NASD with respect to the
proposal; (2) amend NASD Rule 4632D(a) to indicate that the NASD/BSE
TRF will support the .W and .PRP trade report modifiers; (3) add
NASD Rule 4632D(g)(2)(G) to define the term ``cancelled'' for
purposes of determining the deadline for reporting a trade
cancellation; (4) add NASD Rule 4632D(i) and 6130D(g) to expressly
prohibit the aggregating of trades for purposes of trade reporting
to the NASD/BSE TRF; (5) add NASD Rule 6130D(f) to provide trade
report modifiers for certain transactions reported to the NASD/BSE
TRF in accordance with Section 3 of Schedule A to the NASD By-Laws;
and (6) make various technical changes. In addition, in Amendment
No. 1 the NASD makes conforming changes to the rules of the trade
reporting facility operated by the NASD and the National Stock
Exchange, Inc. (the ``NASD/NSX TRF'') by adding NASD Rules 4632C(h)
and 6130C(g) to expressly prohibit the aggregating of trades for
purposes of trade reporting to the NASD/NSX TRF.
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II. Description of the Proposal

A. NASD/BSE TRF

    The NASD proposes to establish a new trade reporting facility, the
NASD/BSE TRF, that will provide NASD members with an additional
facility for reporting transactions in NMS stocks, as defined in Rule
600(b)(47) of Regulation NMS under the Act,\6\ that are effected
otherwise than on an exchange. The NASD/BSE TRF will be operated by the
NASD/BSE Trade Reporting Facility LLC (``NASD/BSE TRF LLC''). The NASD/
BSE TRF structure and rules are substantially similar to the trade
reporting facilities established by the NASD and the Nasdaq Stock
Market, Inc. (the ``NASD/Nasdaq TRF'') and by the NASD and the National
Stock Exchange, Inc. (the ``NASD/NSX TRF''), which the Commission
approved in June 2006 \7\ and November 2006,\8\ respectively.
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    \6\ 17 CFR 242.600(b)(47).
    \7\ See Securities Exchange Act Release No. 54084 (June 30,
2006), 71 FR 38935 (July 10, 2006) (order approving File No. SR-
NASD-2005-087) (``NASD/Nasdaq TRF Approval Order''). Although the
NASD/Nasdaq TRF originally accepted transaction reports only for
Nasdaq Global Market and Nasdaq Capital Market securities and
convertible bonds listed on the Nasdaq Stock Market LLC (``Nasdaq
Exchange''), the Commission recently approved an NASD proposal that,
among other things, amended the rules of the NASD/Nasdaq TRF to
allow NASD members to report transactions in NMS stocks to the NASD/
Nasdaq TRF. See Securities Exchange Act Release No. 54798 (November
21, 2006), 71 FR 69156 (November 29, 2006) (order approving File No.
SR-NASD-2006-104) (``NASD/Nasdaq TRF November Order'').
    \8\ See Securities Exchange Act Release No. 54715 (November 6,
2006), 71 FR 66354 (November 14, 2006) (order approving File No. SR-
NASD-2006-115) (``NASD/NSX TRF Approval Order'').
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    The NASD/BSE TRF will be a facility, as defined under the Act,\9\
of the NASD, subject to regulation by the NASD and to the NASD's
registration as a national securities association. NASD members \10\
that match and/or execute orders internally or through proprietary
systems may submit reports of these trades, with appropriate
information and modifiers, to the NASD/BSE TRF, which will then report
them to the appropriate exclusive securities information processor
(``SIP'').\11\ NASD/BSE TRF transaction reports disseminated to the
media will include a modifier indicating the source of the transactions
that will distinguish them from transactions executed on or through the
BSE. The NASD/BSE TRF will provide the NASD with a real-time copy of
each trade report for regulatory review purposes. At the option of the
participant, the NASD/BSE TRF may provide the necessary clearing
information regarding transactions to the National Securities Clearing
Corporation.
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    \9\ 15 U.S.C. 78c(a)(2).
    \10\ Only NASD members in good standing may participate in the
NASD/BSE TRF. See NASD Rule 6120D(a)(1). NASD/BSE TRF participants
also must meet the minimum requirements set forth in NASD Rule
6120D, including the execution of, and continuing compliance with, a
Participant Application Agreement; membership in, or maintenance of,
an effective clearing arrangement with a participant of a registered
clearing agency registered pursuant to the Act; and the acceptance
and settlement of each trade that the NASD/BSE TRF identifies as
having been effected by the participant. NASD Rule 6190D,
``Termination of Access,'' allows the NASD to terminate access to
the NASD/BSE TRF if a participant fails to: (1) abide by the rules
or operating procedures of the trade reporting service of the NASD/
BSE TRF or the NASD; (2) honor contractual agreements entered into
with the NASD or its subsidiaries or the Participant Application
Agreement; or (3) pay promptly for services rendered to the trade
reporting service of the NASD/BSE TRF.
    \11\ The NASD/BSE TRF will have controls in place to ensure that
transactions reported to the NASD/BSE TRF that are significantly
away from the current market will not be submitted to the SIP. The
NASD represents that this is consistent with current practice and
notes that the Alternative Display Facility (``ADF'') and the NASD/
Nasdaq TRF currently do not submit such trades to the SIP.
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B. Limited Liability Company Agreement of the NASD/BSE TRF LLC

    The NASD and the BSE will jointly own the NASD/BSE TRF LLC, which
will operate the NASD/BSE TRF. The NASD has filed the Limited Liability
Company Agreement of the NASD/BSE TRF LLC (the ``LLC Agreement'') as
part of the current proposal. The LLC Agreement recognizes the NASD as
having sole regulatory responsibility for the NASD/BSE TRF. The NASD,
as the ``SRO Member'' under the LLC Agreement, will perform the ``SRO
Responsibilities'' \12\ for the NASD/BSE TRF. The BSE, as the
``Business Member'' under the LLC Agreement, will be primarily
responsible for the management of the facility's business affairs to
the extent those activities are not inconsistent with the regulatory
and oversight functions of the NASD. The BSE will pay the cost of
regulation and provide systems to enable NASD members to report trades
to the NASD/BSE TRF. The BSE will be entitled to the profits and
losses, if any, derived from the operation of the NASD/BSE TRF.\13\
Under section 9(d) of the LLC Agreement, each Member agrees to comply
with the federal securities laws and the rules and regulations
thereunder and to cooperate with the Commission pursuant to its
regulatory authority and the provisions of the LLC Agreement.
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    \12\ The LLC Agreement defines ``SRO Responsibilities'' as those
duties or responsibilities of a self-regulatory organization
(``SRO'') pursuant to the Act and the rules promulgated thereunder,
including but not limited to those set out in section 9(a) of the
LLC Agreement. See Schedule A of the LLC Agreement.
    \13\ See section 15 of the LLC Agreement.
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    The NASD/BSE TRF LLC will be managed by, or under the direction of,
a Board of Directors to be established by the NASD and the BSE. The
NASD will have the right to designate at least one Director, the SRO
Member Director, to the NASD/BSE TRF LLC Board of Directors. The SRO
Director must approve, by consent, all ``Major Actions,'' as defined in
section 10(e) of the LLC Agreement. In addition, each Director agrees
to comply with the federal securities laws and the rules and
regulations thereunder and to cooperate with the Commission and the SRO
Member pursuant to their regulatory authority.\14\ Further, when
discharging her or her duties as a member of the Board of Directors,
each Director must take into consideration whether his or her actions
as a Director would cause the NASD/BSE TRF or either Member to engage
in conduct that would be inconsistent with the purposes of the Act.\15\
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    \14\ See section 10(b) of the LLC Agreement.
    \15\ Id.
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    The initial term of the LLC Agreement is three years. During that
time, until the NASD/BSE TRF reaches ``Substantial Trade Volume''
(defined as 250,000 trades or more per day for three consecutive
months), the BSE may terminate the arrangement for convenience. After
the NASD/BSE TRF reaches Substantial Trade Volume, either Member may
terminate the LLC Agreement by providing to the other Member prior
written notice of at least one year. In addition, the NASD may
terminate in the event its status or reputation as an SRO is called
into jeopardy by the actions of the BSE or the NASD/BSE TRF LLC. If the
NASD/BSE TRF LLC arrangement is terminated, the NASD represents that it
would be able to fulfill all of its regulatory obligations with respect
to over-the-counter (``OTC'') trade reporting through its other
facilities, including the NASD/Nasdaq TRF, the ADF, and the ITS/CAES
System.

C. NASD/BSE TRF Rules

1. NASD Rule 4000D and 6000D Series
    The NASD proposes to adopt the NASD Rule 4000D Series, ``The NASD/
BSE Trade Reporting Facility,'' and 6000D Series, ``NASD/BSE Trade
Reporting Facility Systems and Programs,'' to establish, respectively,
trade reporting and clearing and comparison rules for the NASD/BSE
TRF.\16\ The NASD Rule 4000D and 6000D Series are substantially similar
to the NASD Rule 4000 and 6000 Series governing the NASD/Nasdaq TRF and
the NASD Rule 4000C and 6000C Series governing the NASD/NSX TRF.\17\
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    \16\ The NASD notes that all other NASD rules that apply to OTC
trading generally will apply to trades reported to the NASD/BSE TRF.
    \17\ Some differences among the rules governing the governing
the trade reporting facilities result from differences among the
trade reporting systems of the facilities. For example, because
neither the NASD/BSE TRF or the NASD/NSX TRF has a trade comparison
functionality, the rules governing the NASD/BSE TRF and the NASD/NSX
TRF contain no provisions relating to trade matching, trade
acceptance, or aggregate volume matching. The rules governing the
NASD/Nasdaq TRF contain such provisions.
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D. Amendment No. 1

    Amendment No. 1 makes several changes to the proposal. In the
original proposal, proposed NASD Rule 4632D(a)(7) indicated that stop
stock transactions, transactions at prices based on average-weighting
or other special formulae, and certain transactions that reflected a
price different from the current market could not be reported to the
NASD/BSE TRF and had to be reported to the NASD via an alternative
electronic mechanism. Amendment No. 1 revises NASD Rule 4362D(a) to
indicate that the NASD/BSE TRF will support these trades and thus will
support the .W and .PRP trade report modifiers. Specifically, new NASD
Rules 4632D(a)(4) and (a)(9) require NASD members to append the .W
trade report modifier to, respectively, transaction reports occurring
at prices based on average-weighting or other special pricing formulae
and to reports of stop stock transactions. New NASD Rule 4362D(a)(7)
will require members to append the .PRP trade report modifier to
transaction reports that reflect a price different from the current
market when the execution price is based on a prior reference point in
time. New NASD Rules 43632D(a)(4), (7), and (9) are substantially the
same as current NASD Rules 4632(a)(4), (7), and (9), which apply to the
NASD/Nasdaq TRF.
    In addition, Amendment No. 1 adds NASD Rule 6130D(f), which
requires the use of specified trade report modifiers for the reporting
of certain types of transactions that are assessed a regulatory
transaction fee in accordance with section 3 of Schedule A to the NASD
By-Laws. Specifically, NASD Rule 6130D(f) provides trade report
modifiers for the reporting of odd-lot transactions, away from the
market sales, and purchases or sales of securities effected upon the
exercise of an over-the-counter option. These transactions are not to
be reported to the NASD/BSE TRF for purposes of publication.\18\ NASD
Rule 6130D(f) is substantially similar to NASD Rule 6130(g), which
became effective on December 1, 2006.\19\
---------------------------------------------------------------------------

    \18\ See NASD Rule 4632D(f).
    \19\ See Securities Exchange Act Release No. 53977 (June 12,
2006), 71 FR 43976 (June 16, 2006) (order approving File No. SR-
NASD-2006-055). See also Securities Exchange Act Release No. 54909
(December 11, 2006) (notice of filing and immediate effectiveness of
File No. SR-NASD-2006-129) (proposing a substantially similar rule
for the NASD/NSX TRF) (``December Notice'').
---------------------------------------------------------------------------

    Amendment No. 1 also adds NASD Rules 4632D(i) and 6130D(g) to the
rules of the NASD/BSE TRF, and makes conforming changes to the rules of
the NASD/NSX TRF.\20\ These rules add express provisions prohibiting
the aggregation of trades for purposes of trade reporting to the NASD/
BSE TRF and the NASD/NSX TRF. The NASD notes that the original proposal
indicated that members would not be permitted to aggregate individual
executions of orders in a security at the same price into a single
transaction report submitted to the NASD/BSE TRF. Similarly, the NASD
notes that aggregation is not permitted for purposes of trade reporting
to the NASD/NSX TRF.\21\ For the sake of clarity, and to maintain
consistency among the rules governing its trade reporting facilities,
the NASD has determined to add an express prohibition on aggregating
trades to the rules of both the NASD/BSE TRF and the NASD/NSX TRF.
---------------------------------------------------------------------------

    \20\ See NASD Rules 4632C(h) and 6130C(g).
    \21\ See NASD/NSX TRF Approval Order, supra note 8.
---------------------------------------------------------------------------

    Finally, Amendment No. 1 contains several technical changes. In
this regard, Amendment No. 1 adds NASD Rule 4632D(g)(2)(G) for purposes
of determining the deadline for reporting a trade cancellation to the
NASD/BSE TRF. This paragraph is identical to NASD Rule 4632(g)(2)(G) of
the NASD/Nasdaq TRF rules and was omitted inadvertently from NASD Rule
4632D. Amendment No. 1 also replaces an incorrect reference in NASD
Rule 6190D to the ``Applicant Participation Agreement'' with a
reference to the ``Participant Application Agreement;'' replaces a
reference in NASD Rule 4632D(d)(1) to ``Registered ECNs'' with a
reference to ``Reporting ECNs,'' which is the defined term in NASD Rule
6110D; revises NASD Rule 6130D(d)(2) to require trade reports to
include the number of shares or bonds; and revises NASD Rule 4632D to
clarify a reference to a Non-Reporting Member or other contra party,
and to refer to a ``Security Identification Symbol'' rather than a
``stock symbol.''

E. Implementation

    In light of the systems changes necessary for the NASD to implement
the NASD/BSE TRF for non-Nasdaq exchange-listed securities, the NASD
proposes to implement the proposal in two phases. Specifically, the
NASD proposes to implement the proposed rule change with respect to
Nasdaq-listed equity securities and convertible debt on the first day
of operation of the NASD/BSE TRF, and to implement the proposed rule
change with respect to non-Nasdaq exchange-listed securities at a later
date.
    The NASD will announce the implementation of the first phase of the
proposed rule change no later than 30 days following Commission
approval of the proposal, and the second phase no later than 90 days
following Commission approval.

III. Summary of Comments

    The Commission received one comment letter regarding the
proposal.\22\ The commenter argued that the NASD/NSX TRF would have an
unfair competitive advantage over the NASD/BSE TRF if the NASD/NSX TRF
were approved prior to the NASD/BSE TRF. Specifically, the commenter
believes that ``the first regional exchange operated TRF [will] capture
the lion's share of members seeking an alternative to the Nasdaq
operated TRF.''\23\ Citing the Congressional finding in section
11A(a)(1)(C)(ii) of the Act \24\ that ``[i]t is in the public interest
and appropriate for the protection of investors and the maintenance of
fair and orderly markets to assure * * * fair competition among brokers
and broker-dealers, among exchange markets, and between exchange
markets and markets other than exchange markets * * *,'' the commenter
asked the Commission to approve the current proposal and the NASD/NSX
TRF proposal simultaneously. In support of this argument, the commenter
also noted the

similarities between the NASD/NSX TRF proposal and the current
proposal.
---------------------------------------------------------------------------

    \22\ See BSE Letter, supra note 4.
    \23\ See BSE Letter, supra note 4.
    \24\ 15 U.S.C. 78k-1(a)(1)(C)(ii).
---------------------------------------------------------------------------

IV. Discussion

    The Commission finds that the proposed rule change, as amended, is
consistent with the requirements of the Act and the rules and
regulations thereunder applicable to a national securities
association.\25\ In particular, the Commission finds that the proposed
rule change, as amended, is consistent with section 15A(b)(6) of the
Act \26\ 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
regulating, clearing, settling, processing information with respect to
and facilitating transactions in securities, to remove impediments to
and perfect the mechanism of a free and open market and a national
market system and, in general, to protect investors and the public
interest.
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    \25\ In approving this proposed rule change, the Commission has
considered the proposal's impact on efficiency, competition, and
capital formation. See 15 U.S.C. 78c(f).
    \26\ 15 U.S.C. 78o-3(b)(6).
---------------------------------------------------------------------------

    The NASD/BSE TRF will provide NASD members with an additional
mechanism for reporting transactions in exchange-listed securities
effected otherwise than on an exchange. Rule 601 of Regulation NMS
requires the NASD to file a transaction reporting plan regarding
transactions in listed equity and Nasdaq securities that are executed
by its members otherwise than on a national securities exchange.\27\
Under rule 603 of Regulation NMS,\28\ national securities exchanges and
national securities associations act jointly pursuant to an effective
national market system plan to disseminate consolidated information,
including a national best bid and offer, and quotations for and
transactions in NMS stocks. Today, the NASD operates the ADF,\29\ NASD/
Nasdaq TRF \30\ and the NASD/NSX TRF,\31\ and the ITS/CAES System \32\
for collecting transaction reports. In addition, the NASD is a
participant in the Nasdaq UTP Plan \33\ with regard to transaction
reports in Nasdaq-listed securities, and the CTA Plan \34\ with regard
to securities listed on exchanges other than Nasdaq.
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    \27\ Under Rule 601(b) of Regulation NMS, broker-dealers are
prohibited from executing a transaction otherwise than on a national
securities exchange unless there is an effective transaction
reporting plan. NASD Rule 5000 requires NASD members to report
transactions in exchange-listed securities effected otherwise than
on an exchange to NASD.
    \28\ 17 CFR 242.603.
    \29\ Currently, the ADF only accepts quotes and trades in
Nasdaq-listed securities. The Commission recently approved a
proposal to extend the ADF to non-Nasdaq exchange-listed securities.
See Securities Exchange Act Release No. 54537 (September 28, 2006),
71 FR 59173 (October 6, 2006) (order approving File No. SR-NASD-
2006-091).
    \30\ See NASD/Nasdaq TRF Approval Order and NASD/Nasdaq TRF
November Order, supra note 7.
    \31\ See NASD/NSX TRF Approval Order, supra note 8.
    \32\ The ITS/CAES System provides a means by which NASD and its
members can comply with the terms of the Intermarket Trading System
Plan (``ITS Plan''). The ITS/CAES System reports trades in non-
Nasdaq exchange-listed securities that are effected in the ITS/CAES
System or in NASD members' proprietary systems. The Commission
recently approved an NASD proposal to amend the ITS/CAES System to
reflect the operation of the Nasdaq Exchange as a national
securities exchange. See NASD/Nasdaq TRF November Order, supra note
7.
    \33\ Joint Self-Regulatory Organization Plan Governing the
Collection, Consolidation and Dissemination of Quotation and
Transaction Information for Nasdaq-Listed Securities Traded on
Exchanges on an Unlisted Trading Privileges Basis (``Nasdaq UTP
Plan'').
    \34\ Consolidated Tape Association Plan (``CTA Plan'').
---------------------------------------------------------------------------

    Upon approval of the NASD/BSE TRF, the NASD will operate another
facility for the purposes of accepting transaction reports from its
members. The Commission has previously recognized that the Act does not
prohibit the NASD from establishing multiple facilities for fulfilling
its regulatory purposes.\35\ Indeed, as noted above, the NASD currently
operates multiple facilities for fulfilling its regulatory obligations.
Therefore, the Commission believes that it is consistent with the Act
for the NASD to establish the NASD/BSE TRF for purposes of fulfilling
its regulatory obligations. The NASD represented that if the NASD/BSE
TRF LLC arrangement is terminated, the NASD will be able to fulfill all
of its regulatory obligations with respect to OTC trade reporting
through its other facilities, including the NASD/Nasdaq TRF and the
ADF.
---------------------------------------------------------------------------

    \35\ See NASD/Nasdaq TRF Approval Order, supra note 7.
---------------------------------------------------------------------------

    The NASD represented that it will have an integrated audit trail of
all trade reporting facilities, ADF, and ITS/CAES System transactions,
and will have integrated surveillance capabilities. NASD has
represented that it expects to automate its integrated audit trail and
surveillance by the end of the fourth quarter of 2006 for Nasdaq-listed
securities and by the end of the first quarter of 2007 for non-Nasdaq
exchange-listed securities. The Commission believes that an integrated
audit trail and integrated surveillance capabilities are important to
the NASD's ability to conduct effective surveillance of OTC trading in
exchange-listed securities when transactions in those securities can be
reported to one of the NASD's trade reporting facilities, the ADF, or
the ITS/CAES System.
    A commenter suggested that the Commission approve the current
proposal simultaneously with the NASD/NSX TRF.\36\ As noted above, the
Commission has approved the NASD's proposal to establish the NASD/NSX
TRF.\37\ The Commission stated in the NASD/NSX TRF Approval Order that
it did not believe that it should delay the operation of the NASD/NSX
TRF until other trade reporting facilities are ready to operate.\38\
The Commission stated, further, that it believed that approving the
NASD/NSX TRF and allowing it to begin operations immediately could
enhance competition by providing a new facility, in addition to those
that are operating currently, for reporting OTC trades in exchange-
listed securities.\39\
---------------------------------------------------------------------------

    \36\ See BSE Letter, supra note 4.
    \37\ See NASD/NSX TRF Approval Order, supra note 8.
    \38\ See NASD/NSX TRF Approval Order, supra note 8.
    \39\ See NASD/NSX TRF Approval Order, supra note 8.
---------------------------------------------------------------------------

A. NASD/BSE TRF Rules

    Most of the provisions in the new NASD Rule 4000D and 6000D Series,
which establish the trade reporting and clearing and comparison rules
for the NASD/BSE TRF, are substantially similar to the NASD Rule 4000
and 6000 Series and the NASD Rule 4000C and 6000C Series that the
Commission approved for the NASD/Nasdaq TRF \40\ and the NASD/NSX
TRF,\41\ respectively. Other provisions in the rules of the NASD/BSE
TRF are substantially similar to existing NASD rules.\42\ The
Commission finds that the provisions of the NASD Rule 4000D and 6000D
Series that are substantially similar to existing NASD rules are
consistent with Act.
---------------------------------------------------------------------------

    \40\ See NASD/Nasdaq TRF Approval Order, supra note 7.
    \41\ See NASD/NSX TRF Approval Order, supra note 8.
    \42\ For example, the two- and three-party trade reporting rules
in NASD Rules 4632D(c) and (d) are substantially similar to the two-
and three-party trade reporting rules of the ADF. See NASD Rules
4632A(c) and (d). Similarly, the provisions of NASD Rule 6130D(f),
which provide trade report modifiers for certain transactions that
are assessed a regulatory transaction fee in accordance with Section
3 of Schedule A to the NASD By-Laws, are substantially similar to
NASD Rule 6130(g), which governs the NASD/Nasdaq TRF. The NASD also
adopted substantially similar provisions for the NASD/NSX TRF in
NASD Rule 6130C(f). See December Notice, supra note 19.
---------------------------------------------------------------------------

    In Amendment No. 1, the NASD proposes to adopt rules for the NASD/
NSX TRF and the NASD/BSE TRF that expressly prohibit members from
aggregating trades for purposes of trade

reporting to the NASD/NSX TRF and the NASD/BSE TRF.\43\ The NASD notes
that both its initial NASD/BSE TRF proposal and the NASD/NSX TRF
proposal \44\ stated this prohibition, which the NASD now proposes to
include in the rules of the NASD/NSX TRF and the NASD/BSE TRF. The
Commission finds that these provisions are consistent with the Act
because they will help to clarify the rules governing the NASD/NSX TRF
and the NASD/BSE TRF.
---------------------------------------------------------------------------

    \43\ See NASD Rules 4632C(h) and 6130C(g) (governing the NASD/
NSX TRF); and 4632D(i) and 6130D(g) (governing the NASD/BSE TRF).
    \44\ See NASD/NSX TRF Approval Order, supra note 8.
---------------------------------------------------------------------------

    In addition, Amendment No. 1 revises NASD Rules 4632D(a)(4), (7),
and (9) to reflect that the NASD/BSE TRF will support the .W and .PRP
modifiers, and adds NASD Rule NASD Rule 4632D(g)(2)(G), which is
identical to NASD Rule 4632(g)(2)(G), and was inadvertently omitted.
Amendment No. 1 also proposes to adopt NASD Rule 6130D(f), which
provides trade report modifiers for certain transactions and is
substantially similar to NASD Rules 6130(g) and 6130C(f).\45\ Because
proposed NASD Rule 6130D(f), and the proposed changes to NASD Rule
4632D(a) and NASD Rule 4632D(g), adopt rule provisions for the NASD/BSE
TRF that are identical or substantially similar to existing NASD rules,
the Commission finds that these changes are consistent with the Act.
Similarly, Commission finds that the technical changes described in
Section II.D. above, which correct errors in the text of the NASD/BSE
TRF's rules, are consistent with the Act because they will help to
ensure the accuracy of the NASD's rules.
---------------------------------------------------------------------------

    \45\ See note 42, supra.
---------------------------------------------------------------------------

B. NASD/BSE TRF LLC

    The NASD and the BSE will jointly own the NASD/BSE TRF LLC, which
will operate the NASD/BSE TRF. The NASD has filed the LLC Agreement as
part of the current proposal.\46\ The LLC Agreement is substantially
similar to the limited liability company agreement of the NASD/Nasdaq
TRF LLC (``NASD/Nasdaq TRF LLC Agreement'') that the Commission
approved in the NASD/Nasdaq TRF Approval Order \47\ and to the limited
liability company agreement of the NASD/NSX TRF that the Commission
approved in the NASD/NSX TRF Approval Order.\48\ Accordingly, for the
reasons discussed in the NASD/Nasdaq TRF Approval Order with respect to
the NASD/Nasdaq TRF LLC Agreement, the Commission finds that the LLC
Agreement is consistent with the Act.\49\
---------------------------------------------------------------------------

    \46\ The Commission notes that any changes to the LLC Agreement
that are stated policies, practices, or interpretations of the NASD,
as defined in Rule 19b-4 under the Act, must be filed with the
Commission pursuant to Section 19(b) of the Act and Rule 19b-4
thereunder.
    \47\ See note 7, supra.
    \48\ See note 8, supra.
    \49\ The Commission incorporates by reference the discussion and
analysis of the NASD/Nasdaq TRF LLC and NASD/Nasdaq TRF LLC
Agreement set forth in the NASD/Nasdaq TRF Approval Order, supra
note 7.
---------------------------------------------------------------------------

    The Commission notes that the NASD/BSE TRF LLC, as the operator of
an NASD facility, is an integral part of a SRO registered pursuant to
the Act and, as such, is subject to obligations imposed by the Act. The
Commission underscores that these obligations endure so long as the
NASD/BSE TRF LLC operates an NASD facility.
    The Commission believes that the LLC Agreement makes clear that the
NASD will have sole regulatory responsibility for the activities of
NASD members related to the facility operated by the NASD/BSE TRF LLC
and provides the NASD with certain rights that are intended to preserve
its regulatory authority and control.\50\ The Commission believes that
the provisions of the LLC Agreement will allow the NASD to carry out
its self-regulatory responsibilities with respect to its facility and
that both the Commission and the NASD will have sufficient regulatory
jurisdiction over the controlling parties of the NASD/BSE TRF LLC to
carry out their responsibilities under the Act.
---------------------------------------------------------------------------

    \50\ For example, pursuant to the LLC Agreement, the NASD must
consent before certain ``Major Actions,'' as defined in the LLC
Agreement, with respect to the NASD/BSE TRF LLC are effective.
---------------------------------------------------------------------------

    For example, under the LLC Agreement, each Member and each director
of the NASD/BSE TRF LLC agrees to comply with the federal securities
laws and rules and regulations thereunder and to cooperate with the
Commission pursuant to its regulatory authority and the provisions of
the LLC Agreement. In addition, the NASD and the BSE acknowledge in the
LLC Agreement that--to the extent directly related to the NASD/BSE TRF
LLC's activities--their books, records, premises, officers, directors,
governors, agents, and employees will be deemed to be the books,
records, premises, officers, directors, governors, agents, and
employees of the NASD itself and its affiliates for the purposes of,
and subject to oversight pursuant to, the Act. This provision will
reinforce the Commission's ability to exercise its authority under
Section 19(h)(4) of the Act \51\ with respect to the officers and
directors of the NASD/BSE TRF LLC because all such officers and
directors-to the extent that they are acting in matters related to the
NASD/BSE TRF LLC's activities-would be deemed to be the officers and
directors of the NASD itself. Furthermore, under the LLC Agreement, the
records of the NASD and BSE, to the extent that they are related to the
NASD/BSE TRF LLC's activities, are deemed to be records of the NASD
itself and are subject to the Commission's examination authority under
Section 17(b)(1) of the Act.\52\
---------------------------------------------------------------------------

    \51\ 15 U.S.C. 78s(h)(4). Section 19(h)(4) of the Act authorizes
the Commission, by order, to remove from office or censure any
officer or director of an SRO if it finds after notice and an
opportunity for hearing that such officer or director has: (1)
Willfully violated any provision of the Act or the rules and
regulations thereunder, or the rules of such SRO; (2) willfully
abused his or her authority; or (3) without reasonable justification
or excuse, has failed to enforce compliance with any such provision
by a member or person associated with a member of the SRO.
    \52\ See Section 17(c) of the LLC Agreement.
---------------------------------------------------------------------------

    The LLC Agreement also provides that the NASD and the BSE, and each
officer, director, agent, and employee thereof, irrevocably submits to
the jurisdiction of the U.S. federal courts, the Commission, and the
NASD for the purpose of any suit, action, or proceeding pursuant to the
U.S. federal securities laws and the rules and regulations thereunder
arising from, or relating to, the NASD/BSE TRF LLC's activities.
    The Commission also believes that the requirements of Section 19(b)
of the Act and Rule 19b-4 thereunder provide the Commission with
sufficient authority over changes in control of the NASD/BSE TRF LLC to
enable the Commission to carry out its regulatory oversight
responsibilities with respect to the NASD and its facilities.
    The Commission notes that the NASD is required to enforce
compliance with the provisions of the LLC Agreement because they are
``rules of the association'' within the meaning of Section 3(a)(27) of
the Act.\53\ A failure on the part of the NASD to enforce its rules
could result in a suspension or revocation of its registration pursuant
to Section 19(h)(1) of the Act.\54\
---------------------------------------------------------------------------

    \53\ 15 U.S.C. 78c(a)(27).
    \54\ 15 U.S.C. 78s(h)(1).
---------------------------------------------------------------------------

C. Accelerated Approval of the Proposed Rule Change as Amended by
Amendment No. 1

    The Commission finds good cause for approving the proposed rule
change as amended by Amendment No. 1 prior to the thirtieth day after
the date of publication of notice of filing thereof in

the Federal Register. As described more fully above, the changes to
NASD Rules 4362D(a), 4632D(g), and 6130D(f) adopt provisions for the
NASD/BSE TRF that are identical to or substantially the same as
existing NASD rules. The Commission believes that these changes do not
raise new regulatory issues and will help to provide consistency in the
NASD's trade reporting rules. Amendment No. 1 also revises the rules of
the NASD/NSX TRF and the NASD/BSE TRF to include an express prohibition
on the aggregating of trades for purposes of trade reporting to these
facilities. The Commission believes that this change strengthens and
clarifies the rules governing the NASD/NSX TRF and the NASD/BSE TRF by
providing an express prohibition on the aggregating of trades for
purposes of trade reporting to the facilities. Finally, Amendment No. 1
includes technical changes that correct errors in the text of the NASD/
BSE TRF's rules, thereby helping to ensure the accuracy of the NASD's
rules. For these reasons, the Commission finds that it is consistent
with Sections 15A(b)(6) and 19(b) of the Act to approve the proposed
rule change as amended by Amendment No. 1 on an accelerated basis.

V. Solicitation of Comments

    Interested persons are invited to submit written data, views, and
arguments concerning the proposed rule change as amended by Amendment
No. 1, including whether it 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<EMAIL_ADDRESS>Please include

File Number SR-NASD-2006-115 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.

All submissions should refer to File Number SR-NASD-2006-115. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml
). Copies of the submission, all subsequent amendments, all

written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for inspection and
copying in the Commission's Public Reference Room. Copies of the filing
also will be available for inspection and copying at the principal
office of the Exchange. All comments received will be posted without
change; the Commission does not edit personal identifying information
from submissions. You should submit only information that you wish to
make available publicly. All submissions should refer to File Number
SR-NASD-2006-115 and should be submitted on or before January 10, 2007.

VI. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\55\ that the proposed rule change (SR-NASD-2006-115), as amended,
is approved.
---------------------------------------------------------------------------

    \55\ 15 U.S.C. 78s(b)(2).
    \56\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\56\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E6-21660 Filed 12-19-06; 8:45 am]

BILLING CODE 8011-01-P


[Federal Register Volume 85, Number 238 (Thursday, December 10, 2020)]
[Rules and Regulations]
[Pages 79422-79425]
[FR Doc No: 2020-26919]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 71

[Docket No. FAA-2020-0667; Airspace Docket No. 20-AGL-24]
RIN 2120-AA66

Amendment of Multiple Air Traffic Service (ATS) Routes in the
Northcentral United States

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

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SUMMARY: This action amends VHF Omnidirectional Range (VOR) Federal
airways V-15, V-26, V-55, V-78, V-100, V-159, V-175, V-219, and V-307,
and Area Navigation (RNAV) routes T-285 and T-354 in the Northcentral
United States. The modifications are necessary due to the planned
decommissioning of the VOR portion of the Park Rapids, MN, VOR/Distance
Measuring Equipment (VOR/DME); Sioux City, IA, VOR/Tactical Air
Navigation (VORTAC); and Huron, SD, VORTAC navigation aids (NAVAIDs).
The NAVAIDs provide navigation guidance for segments of the affected
air traffic service (ATS) routes. The VORs are being decommissioned as
part of the FAA's VOR Minimum Operational Network (MON) program.

DATES: Effective date 0901 UTC, February 25, 2021. The Director of the
Federal Register approves this incorporation by reference action under
Title 1 Code of Federal Regulations part 51, subject to the annual
revision of FAA Order 7400.11 and publication of conforming amendments.

ADDRESSES: FAA Order 7400.11E, Airspace Designations and Reporting
Points, and subsequent amendments can be viewed online at https://www.faa.gov/air_traffic/publications/. For further information, you can
contact the Rules and Regulations Group, Federal Aviation
Administration, 800 Independence Avenue SW, Washington, DC 20591;
telephone:<PHONE_NUMBER>. The Order is also available for inspection
at the National Archives and Records Administration (NARA). For
information on the availability of FAA Order 7400.11E at NARA, email:
<EMAIL_ADDRESS>or go to https://www.archives.gov/federal-register/cfr/ibr-locations.html.

FOR FURTHER INFORMATION CONTACT: Colby Abbott, Rules and Regulations
Group, Office of Policy, Federal Aviation Administration, 800
Independence Avenue SW, Washington, DC 20591; telephone: (202) 267-
8783.

SUPPLEMENTARY INFORMATION:

Authority for This Rulemaking

    The FAA's authority to issue rules regarding aviation safety is
found in Title 49 of the United States Code. Subtitle I, Section 106
describes the authority of the FAA Administrator. Subtitle VII,
Aviation Programs, describes in more detail the scope of the agency's
authority. This rulemaking is promulgated under the authority described
in Subtitle VII, Part A, Subpart I, Section 40103. Under that section,
the FAA is charged with prescribing regulations to assign the use of
the airspace necessary to ensure the safety of aircraft and the
efficient use of airspace. This regulation is within the scope of that
authority as it modifies the route structure as necessary to preserve
the safe and efficient flow of air traffic within the National Airspace
System.

History

    The FAA published a notice of proposed rulemaking (NPRM) for Docket
No. FAA-2020-0667 in the Federal Register (85 FR 47317; August 5,
2020), amending VOR Federal airways V-15, V-26, V-55, V-78, V-100, V-
159, V-175, V-219, and V-307, and RNAV routes T-285 and T-354 in the
Northcentral United States. The proposed amendment actions were due to
the planned decommissioning of the VOR portion of the Park Rapids, MN,
VOR/DME; Sioux City, IA, VORTAC; and Huron, SD, VORTAC NAVAIDs.
Interested parties were invited to participate in this rulemaking
effort by submitting written comments on the proposal. No comments were
received.
    Subsequent to the NPRM, the FAA published a rule for Docket No.
FAA-2020-0189 in the Federal Register (85 FR 50777; August 18, 2020),
amending VOR Federal airway V-55 by removing the airway segment between
the Pullman, MI, VOR/DME and the intersection of the Green Bay, WI,
VORTAC 270[deg] and Oshkosh, WI, VORTAC 339[deg] radials (BIPID fix).
That airway amendment, effective November 5, 2020, is included in this
rule.
    Additionally, subsequent to the NPRM, the FAA published a rule for
Docket No. FAA-2020-0294 in the Federal Register (85 FR 51324; August
20, 2020), amending RNAV route T-354 by replacing the Siren DME route
point with the SSKYY, WI, waypoint and extending the route
southeastward from the SSKYY, WI, waypoint to the Cunningham, KY, VOR/
DME. Those route amendments, effective November 5, 2020, are also
included in this rule.
    VOR Federal airways are published in paragraph 6010(a) and RNAV T-
routes are published in paragraph 6011 of FAA Order 7400.11E dated July
21, 2020, and effective September 15, 2020, which is incorporated by
reference in 14 CFR 71.1. The VOR Federal airways listed in this
document will be subsequently published in the Order.

Availability and Summary of Documents for Incorporation by Reference

    This document amends FAA Order 7400.11E, Airspace Designations and
Reporting Points, dated July 21, 2020, and effective September 15,
2020. FAA Order 7400.11E is publicly available as listed in the
ADDRESSES section of this document. FAA Order 7400.11E lists Class A,
B, C, D, and E airspace areas, air traffic service routes, and
reporting points.

The Rule

    The FAA is amending Title 14 Code of Federal Regulations (14 CFR)
part 71 by modifying VOR Federal airways V-15, V-26, V-55, V-78, V-100,
V-159, V-175, V-219, and V-307, and RNAV routes T-285 and T-354. The
planned decommissioning of the VOR portion of the Park Rapids, MN, VOR/
DME; Sioux City, IA, VORTAC; and Huron, SD, VORTAC NAVAIDs has made
this action necessary. The VOR Federal airway changes are outlined
below.
    V-15: V-15 extends between the Navasota, TX, VOR/DME and the
Bonham, TX, VORTAC; between the Okmulgee, OK, VOR/DME and the Neosho,
MO, VOR/DME; and between the Sioux City, IA, VORTAC and the

Minot, ND, VOR/DME. The airway segment overlying the Sioux City, IA,
and Huron, SD, VORTACs between the Sioux City, IA, VORTAC and the
Aberdeen, SD, VOR/DME is removed. The unaffected portions of the
existing airway remain as charted.
    V-26: V-26 extends between the Blue Mesa, CO, VOR/DME and the White
Cloud, MI, VOR/DME. The airway segment overlying the Huron, SD, VORTAC
between the Pierre, SD, VORTAC and the Redwood Falls, MN, VOR/DME is
removed. The unaffected portions of the existing airway remain as
charted.
    V-55: V-55 currently extends between the Dayton, OH, VOR/DME and
the Pullman, MI, VOR/DME; and between the Park Rapids, MN, VOR/DME and
the Bismarck, ND, VOR/DME. The airway segment overlying the Park
Rapids, MN, VOR/DME between the Park Rapids, MN, VOR/DME and the Grand
Forks, ND, VOR/DME is removed. The unaffected portions of the existing
airway remain as charted.
    V-78: V-78 extends between the Huron, SD, VORTAC and the Escanaba,
MI, VOR/DME; and between the Pellston, MI, VORTAC and the Saginaw, MI,
VOR/DME. The airway segment overlying the Huron, SD, VORTAC between the
Huron, SD, VORTAC and the Watertown, SD, VORTAC is removed. The
unaffected portions of the existing airway remain as charted.
    V-100: V-100 extends between the Medicine Bow, WY, VOR/DME and the
Litchfield, MI, VOR/DME. The airway segment overlying the Sioux City,
IA, VORTAC between the O'Neill, NE, VORTAC and the Fort Dodge, IA,
VORTAC is removed. The unaffected portions of the existing airway
remain as charted.
    V-159: V-159 extends between the Virginia Key, FL, VOR/DME and the
Vulcan, AL, VORTAC; and between the Holly Springs, MS, VORTAC and the
Huron, SD, VORTAC. The airway segment overlying the Sioux City, IA, and
Huron, SD, VORTACs between the Omaha, IA, VORTAC and the Huron, SD,
VORTAC is removed. The unaffected portions of the existing airway
remain as charted.
    V-175: V-175 currently extends between the Malden, MO, VORTAC and
the Winnipeg, MB, Canada, VORTAC. The airspace within Canada is
excluded. The airway segment overlying the Sioux City, IA, VORTAC
between the Des Moines, IA, VORTAC and the Worthington, MN, VOR/DME is
removed; and the airway segment overlying the Park Rapids, MN, VOR/DME
between the Alexandria, MN, VOR/DME and the Winnipeg, MB, Canada,
VORTAC is removed. The exclusion statement for the airspace within
Canada is also removed. The unaffected portions of the existing airway
remain as charted.
    V-219: V-219 extends between the Hayes Center, NE, VORTAC and the
Sioux City, IA, VORTAC. The airway segment overlying the Sioux City,
IA, VORTAC between the Norfolk, NE, VOR/DME and the Sioux City, IA,
VORTAC is removed. The unaffected portions of the existing airway
remain as charted.
    V-307: V-307 extends between the Harrison, AR, VOR/DME and the
Sioux City, IA, VORTAC. The airway segment overlying the Sioux City,
IA, VORTAC between the Omaha, IA, VORTAC and the Sioux City, IA, VORTAC
is removed. The unaffected portions of the existing airway remain as
charted.
    The RNAV route changes are outlined below.
    T-285: T-285 extends between the North Platte, NE, VOR/DME and the
Huron, SD, VORTAC. The Huron, SD (HON), route point is changed from
being listed as ``VORTAC'' to ``DME.'' The existing RNAV route remains
as charted.
    T-354: T-354 extends between the Park Rapids, MN, VOR/DME and the
Cunningham, KY, VOR/DME. The Park Rapids, MN (PKD), route point is
changed from being listed as ``VOR/DME'' to ``DME'' and a route segment
extending northwestward from the Park Rapids, MN, DME to the BYZIN, ND,
waypoint is added. The existing RNAV route remains as charted with the
addition of the route segment between the BYZIN, ND, waypoint and the
Park Rapids, MN, DME.
    All NAVAID radials listed in the VOR Federal airway descriptions
below are unchanged and stated in True degrees.
    FAA Order 7400.11, Airspace Designations and Reporting Points, is
published yearly and effective on September 15.

Regulatory Notices and Analyses

    The FAA has determined that this regulation only involves an
established body of technical regulations for which frequent and
routine amendments are necessary to keep them operationally current.
It, therefore: (1) Is not a ``significant regulatory action'' under
Executive Order 12866; (2) is not a ``significant rule'' under
Department of Transportation (DOT) Regulatory Policies and Procedures
(44 FR 11034; February 26, 1979); and (3) does not warrant preparation
of a regulatory evaluation as the anticipated impact is so minimal.
Since this is a routine matter that will only affect air traffic
procedures and air navigation, it is certified that this rule, when
promulgated, will not have a significant economic impact on a
substantial number of small entities under the criteria of the
Regulatory Flexibility Act.

Environmental Review

    The FAA has determined that this action of amending VOR Federal
airways V-15, V-26, V-55, V-78, V-100, V-159, V-175, V-219, and V-307,
and RNAV routes T-285 and T-354, due to the planned decommissioning of
the VOR portion of the Park Rapids, MN, VOR/DME; Sioux City, IA,
VORTAC; and Huron, SD, VORTAC NAVAIDs, qualifies for categorical
exclusion under the National Environmental Policy Act and its
implementing regulations at 40 CFR part 1500, and in accordance with
FAA Order 1050.1F, Environmental Impacts: Policies and Procedures,
paragraph 5-6.5a, which categorically excludes from further
environmental impact review rulemaking actions that designate or modify
classes of airspace areas, airways, routes, and reporting points (see
14 CFR part 71, Designation of Class A, B, C, D, and E Airspace Areas;
Air Traffic Service Routes; and Reporting Points). As such, this action
is not expected to result in any potentially significant environmental
impacts. In accordance with FAA Order 1050.1F, paragraph 5-2 regarding
Extraordinary Circumstances, the FAA has reviewed this action for
factors and circumstances in which a normally categorically excluded
action may have a significant environmental impact requiring further
analysis. The FAA has determined that no extraordinary circumstances
exist that warrant preparation of an environmental assessment or
environmental impact study.

List of Subjects in 14 CFR Part 71

    Airspace, Incorporation by reference, Navigation (air).

Adoption of the Amendment

    In consideration of the foregoing, the Federal Aviation
Administration amends 14 CFR part 71 as follows:

PART 71--DESIGNATION OF CLASS A, B, C, D, AND E AIRSPACE AREAS; AIR
TRAFFIC SERVICE ROUTES; AND REPORTING POINTS

0
1. The authority citation for part 71 continues to read as follows:

    Authority: 49 U.S.C. 106(f), 106(g); 40103, 40113, 40120; E.O.
10854, 24 FR 9565, 3 CFR, 1959-1963 Comp., p. 389.

Sec.  71.1   [Amended]

0
2. The incorporation by reference in 14 CFR 71.1 of FAA Order 7400.11E,
Airspace Designations and Reporting Points, dated July 21, 2020, and
effective September 15, 2020, is amended as follows:

Paragraph 6010(a) Domestic VOR Federal Airways.

* * * * *

V-15 [Amended]

    From Navasota, TX; College Station, TX; Waco, TX; Cedar Creek,
TX; to Bonham, TX. From Okmulgee, OK; to Neosho, MO. From Aberdeen,
SD; Bismarck, ND; to Minot, ND.
* * * * *

V-26 [Amended]

    From Blue Mesa, CO; Montrose, CO; 13 miles 112 MSL, 131 MSL,
Grand Junction, CO; Meeker, CO; Cherokee, WY; Muddy Mountain, WY; 14
miles, 37 miles 75 MSL, 84 miles 90 MSL, Rapid City, SD; Philip, SD;
to Pierre, SD. From Redwood Falls, MN; Farmington, MN; Eau Claire,
WI; Wausau, WI; Green Bay, WI; INT Green Bay 116[deg] and White
Cloud, MI, 302[deg] radials; to White Cloud.
* * * * *

V-55 [Amended]

    From Dayton, OH; Fort Wayne, IN; Goshen, IN; Gipper, MI; Keeler,
MI; to Pullman, MI. From Grand Forks, ND; INT Grand Forks 239[deg]
and Bismarck, ND, 067[deg] radials; to Bismarck.
* * * * *

V-78 [Amended]

    From Watertown, SD; Darwin, MN; Gopher, MN; INT Gopher 091[deg]
and Eau Claire, WI, 290[deg] radials; Eau Claire; Rhinelander, WI;
Iron Mountain, MI; to Escanaba, MI. From Pellston, MI; Alpena, MI;
INT Alpena 232[deg] and Saginaw, MI, 353[deg] radials; to Saginaw.
* * * * *

V-100 [Amended]

    From Medicine Bow, WY; Scottsbluff, NE; Alliance, NE; Ainsworth,
NE; to O'Neill, NE. From Fort Dodge, IA; Waterloo, IA; Dubuque, IA;
Rockford, IL; INT Rockford 074[deg] and Janesville, WI, 112[deg]
radials; INT Janesville 112[deg] and Northbrook, IL, 291[deg]
radials; Northbrook; INT Northbrook 095[deg] and Keeler, MI,
271[deg] radials; Keeler; to Litchfield, MI.
* * * * *

V-159 [Amended]

    From Virginia Key, FL; INT Virginia Key 344[deg] and Treasure,
FL, 178[deg] radials; Treasure; INT Treasure 318[deg] and Orlando,
FL, 140[deg] radials; Orlando; Ocala, FL; Cross City, FL;
Greenville, FL; Pecan, GA; Eufaula, AL; Tuskegee, AL; to Vulcan, AL.
From Holly Springs, MS; Gilmore, AR; Walnut Ridge, AR; Dogwood, MO;
Springfield, MO; Napoleon, MO; INT Napoleon 005[deg] and St. Joseph,
MO, 122[deg] radials; St. Joseph; to Omaha, IA.
* * * * *

V-175 [Amended]

    From Malden, MO; Vichy, MO; Hallsville, MO; Macon, MO;
Kirksville, MO; to Des Moines, IA. From Worthington, MN; Redwood
Falls, MN; to Alexandria, MN.
* * * * *

V-219 [Amended]

    From Hayes Center, NE; INT Hayes Center 059[deg] and Wolbach,
NE, 251[deg] radials; Wolbach; to Norfolk, NE.
* * * * *

V-307 [Amended]

    From Harrison, AR; Neosho, MO; Oswego, KS; Chanute, KS; Emporia,
KS; INT Emporia 336[deg] and Pawnee City, NE, 194[deg] radials;
Pawnee City; to Omaha, IA.
* * * * *

6011 United States Area Navigation Routes.

* * * * *

T-285 North Platte, NE (LBF) to Huron, SD (HON) [Amended]

North Platte, NE (LBF)                            VOR/DME                       (Lat. 41[deg]02'55.34'' N, long. 100[deg]44'49.55'' W)
Thedford, NE (TDD)                                VOR/DM                        (Lat. 41[deg]58'53.99'' N, long. 100[deg]43'08.55'' W)
MARSS, NE                                         Fix                           (Lat. 42[deg]27'48.92'' N, long. 100[deg]36'15.32'' W)
Valentine, NE (VTN)                               NDB                           (Lat. 42[deg]51'41.85'' N, long. 100[deg]32'58.73'' W)
LKOTA, SD                                         WP                            (Lat. 43[deg]15'28.00'' N, long. 100[deg]03'14.00'' W)
LESNR, SD                                         WP                            (Lat. 43[deg]29'16.06'' N, long. 099[deg]45'41.55'' W)
Huron, SD (HON)                                   DME                           (Lat. 44[deg]26'24.30'' N, long. 098[deg]18'39.89'' W)

                                                                      * * * * * * *
T-354 BYZIN, MN to Cunningham, KY (CNG) [Amended]
BYZIN, MN                                         WP                            (lat. 47[deg]29'03.97'' N, long. 096[deg]13'28.09'' W)
Park Rapids, MN (PKD)                             DME                           (Lat. 46[deg]53'53.34'' N, long. 095[deg]04'15.21'' W)
BRNRD, MN                                         WP                            (Lat. 46[deg]20'53.81'' N, long. 094[deg]01'33.54'' W)
SSKYY, WI                                         WP                            (Lat. 45[deg]49'13.60'' N, long. 092[deg]22'28.26'' W)
TONOC, WI                                         FIX                           (Lat. 45[deg]03'47.56'' N, long. 091[deg]38'11.87'' W)
KOETZ, WI                                         WP                            (Lat. 44[deg]13'15.00'' N, long. 091[deg]28'14.00'' W)
HRMNN, WI                                         WP                            (Lat. 43[deg]55'32.51'' N, long. 090[deg]58'04.07'' W)
FOMAG, WI                                         WP                            (Lat. 43[deg]29'38.44'' N, long. 089[deg]46'09.53'' W)
MAYSE, WI                                         WP                            (Lat. 43[deg]10'14.18'' N, long. 089[deg]42'46.52'' W)
HOMRC, IL                                         WP                            (Lat. 41[deg]34'04.67'' N, long. 089[deg]30'20.55'' W)
CPTON, IL                                         WP                            (Lat. 41[deg]06'51.57'' N, long. 089[deg]11'58.93'' W)
BLLUE, IL                                         WP                            (Lat. 40[deg]07'09.20'' N, long. 088[deg]32'45.48'' W)
BOSTN, IL                                         WP                            (Lat. 39[deg]53'46.57'' N, long. 088[deg]26'18.96'' W)
Bible Grove, IL (BIB)                             VORTAC                        (Lat. 38[deg]55'13.24'' N, long. 088[deg]28'54.50'' W)
Cunningham, KY (CNG)                              VOR/DME                       (Lat. 37[deg]00'30.99'' N, long. 088[deg]50'12.89'' W)

* * * * *

    Issued in Washington, DC, on December 3, 2020.
George Gonzalez,
Acting Manager, Rules and Regulations Group.
[FR Doc. 2020-26919 Filed 12-9-20; 8:45 am]
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[Federal Register: October 31, 2008 (Volume 73, Number 212)]
[Notices]
[Page 64958]
[DOCID:fr31oc08-81]

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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

[Docket No. FDA-2008-N-0169]

Agency Information Collection Activities; Announcement of Office
of Management and Budget Approval; Infant Formula Recall Regulations

AGENCY:  Food and Drug Administration, HHS.

ACTION:  Notice.

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

SUMMARY:  The Food and Drug Administration (FDA) is announcing that a
collection of information entitled ``Infant Formula Recall
Regulations'' has been approved by the Office of Management and Budget
(OMB) under the Paperwork Reduction Act of 1995.

FOR FURTHER INFORMATION CONTACT: Jonna Capezzuto, Office of Information
Management (HFA-710), Food and Drug Administration, 5600 Fishers Lane,
Rockville, MD 20857,<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: In the Federal Register of June 24, 2008 (73
FR 35699), the agency announced that the proposed information
collection had been submitted to OMB for review and clearance under 44
U.S.C. 3507. 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. OMB has now approved the
information collection and has assigned OMB control number 0910-0188.
The approval expires on August 31, 2011. A copy of the supporting
statement for this information collection is available on the Internet
at http://www.reginfo.gov/public/do/PRAMain.

    Dated: October 22, 2008.
Jeffrey Shuren,
Associate Commissioner for Policy and Planning.
[FR Doc. E8-26010 Filed 10-30-08; 8:45 am]

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