[Federal Register Volume 79, Number 161 (Wednesday, August 20, 2014)]
[Notices]
[Pages 49311-49312]
[FR Doc No: 2014-19779]

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ENVIRONMENTAL PROTECTION AGENCY

[EPA-HQ-OPP-2010-0014; FRL-9914-46]

Notice of Receipt of Requests to Voluntarily Cancel Certain
Pesticide Registrations

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

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SUMMARY: In accordance with the Federal Insecticide, Fungicide, and
Rodenticide Act (FIFRA), EPA is issuing a notice of receipt of requests
by registrants to voluntarily cancel certain pesticide registrations.
EPA intends to grant these requests at the close of the comment period
for this announcement unless the Agency receives substantive comments
within the comment period that would merit its further review of the
requests, or unless the registrants withdraw their requests. If these
requests are granted, any sale, distribution, or use of products listed
in this notice will be permitted after the registration has been
cancelled only if such sale, distribution, or use is consistent with
the terms as described in the final order.

DATES: Comments must be received on or before February 17, 2015.

ADDRESSES: Submit your comments, identified by docket identification
(ID) number EPA-HQ-OPP-2010-0014, by one of the following methods:
     Federal eRulemaking Portal:
http:[sol][sol]www.regulations.gov. Follow the online instructions for
submitting comments. Do not submit electronically any information you
consider to be Confidential Business Information (CBI) or other
information whose disclosure is restricted by statute.
     Mail: OPP Docket, Environmental Protection Agency Docket
Center (EPA/DC), (28221T), 1200 Pennsylvania Ave. NW., Washington, DC
20460-0001.
    Submit written withdrawal request by mail to: Pesticide Re-
Evaluation Division (7508P), Office of Pesticide Programs,
Environmental Protection Agency, 1200 Pennsylvania Ave. NW.,
Washington, DC 20460-0001. ATTN: John W. Pates, Jr.
     Hand Delivery: To make special arrangements for hand
delivery or delivery of boxed information, please follow the
instructions at http:[sol][sol]www.epa.gov/dockets/contacts.html.
    Additional instructions on commenting or visiting the docket, along
with more information about dockets generally, is available at
http:[sol][sol]www.epa.gov/dockets.

FOR FURTHER INFORMATION CONTACT: John W. Pates, Jr., Pesticide Re-
Evaluation Division (7508P), Office of Pesticide Programs,
Environmental Protection Agency, 1200 Pennsylvania Ave. NW.,
Washington, DC 20460-0001; telephone number:<PHONE_NUMBER>; email
address<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

I. General Information

A. Does this action apply to me?

    This action is directed to the public in general, and may be of
interest to a wide range of stakeholders including environmental, human
health, and agricultural advocates; the chemical industry; pesticide
users; and members of the public interested in the sale, distribution,
or use of pesticides.

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 email. 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).
    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. What action is the Agency taking?

    This notice announces receipt by the Agency of requests from
registrants to cancel 4 pesticide products registered under FIFRA
section 3 or 24(c). These registrations are listed in sequence by
registration number (or company number and 24(c) number) in Table 1 of
this unit.
    Unless the Agency determines that there are substantive comments
that warrant further review of the requests or the registrants withdraw
their requests, EPA intends to issue an order in the Federal Register
canceling all of the affected registrations.

                          Table 1--Registrations With Pending Requests for Cancellation
----------------------------------------------------------------------------------------------------------------
             Registration No.                      Product name                       Chemical name
----------------------------------------------------------------------------------------------------------------
042750-00259.............................  Glufosinate-Ammonium TGAI...  Glufosinate.
AR-130001................................  Raptor Herbicide............  Imazamox.
MI-030002................................  Velocity Herbicide..........  Bispyribac-sodium.
PR-090001................................  Dupont Coragen Insect         Chlorantraniliprole.
                                            Control.
----------------------------------------------------------------------------------------------------------------

    Table 2 of this unit includes the names and addresses of record for
all registrants of the products in Table 1 of this unit, in sequence by
EPA company number. This number corresponds to the first part of the
EPA registration numbers of the products listed in this unit.

         Table 2--Registrants Requesting Voluntary Cancellation
------------------------------------------------------------------------
       EPA company No.                  Company name and address
------------------------------------------------------------------------
42750........................  Albaugh, LLC., P.O. Box 2127, Valdosta,
                                GA 31604-2127.
AR-130001....................  BASF Corporation, 26 Davis Drive, P.O.
                                Box 13528, Research Triangle Park, NC
                                27709-3528.
MI-030002....................  Valent U.S.A. Corporation, 1600 Riviera
                                Avenue, Suite 200, Walnut Creek, CA
                                94596.
PR-090001....................  E. I. du Pont de Nemours and Company
                                (S300/419), 1007 Market Street,
                                Wilmington, DE 19898-0001.
------------------------------------------------------------------------

III. What is the Agency's authority for taking this action?

    Section 6(f)(1) of FIFRA provides that a registrant of a pesticide
product may at any time request that any of its pesticide registrations
be canceled. FIFRA further provides that, before acting on the request,
EPA must publish a notice of receipt of any such request in the Federal
Register.
    Section 6(f)(1)(B) of FIFRA requires that before acting on a
request for voluntary cancellation, EPA must provide a 30-day public
comment period on the request for voluntary cancellation or use
termination. In addition, FIFRA section 6(f)(1)(C) requires that EPA
provide a 180-day comment period on a request for voluntary
cancellation or termination of any minor agricultural use before
granting the request, unless:
    1. The registrants request a waiver of the comment period, or
    2. The EPA Administrator determines that continued use of the
pesticide would pose an unreasonable adverse effect on the environment.
    The registrants in Table 2 of Unit II. have not requested that EPA
waive the 180-day comment period. Accordingly, EPA will provide a 180-
day comment period on the proposed requests.

IV. Procedures for Withdrawal of Request

    Registrants who choose to withdraw a request for cancellation
should submit such withdrawal in writing to the person listed under FOR
FURTHER INFORMATION CONTACT. If the products have been subject to a
previous cancellation action, the effective date of cancellation and
all other provisions of any earlier cancellation action are
controlling.

V. Provisions for Disposition of Existing Stocks

    Existing stocks are those stocks of registered pesticide products
that are currently in the United States that were packaged, labeled,
and released for shipment prior to the effective date of the
cancellation action. Because the Agency has identified no significant
potential risk concerns associated with these pesticide products, upon
cancellation of the products identified in Table 1 of Unit II., EPA
anticipates allowing registrants to sell and distribute existing stocks
of these products for 1 year after publication of the Cancellation
Order in the Federal Register. Thereafter, registrants will be
prohibited from selling or distributing the pesticides identified in
Table 1 of Unit II., except for export consistent with FIFRA section 17
or for proper disposal. Persons other than registrants will generally
be allowed to sell, distribute, or use existing stocks until such
stocks are exhausted, provided that such sale, distribution, or use is
consistent with the terms of the previously approved labeling on, or
that accompanied, the canceled products.

List of Subjects

    Environmental protection, Pesticides and pests.

    Dated: August 11, 2014.
Richard P. Keigwin, Jr.,
Director, Pesticide Re-Evaluation Division, Office of Pesticide
Programs.
[FR Doc. 2014-19779 Filed 8-19-14; 8:45 am]
BILLING CODE 6560-50-P


[Federal Register: May 2, 2007 (Volume 72, Number 84)]
[Notices]
[Page 24286-24287]
[DOCID:fr02my07-49]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. CP07-128-000]

Cheyenne Plains Gas Pipeline Company; Notice of Intent To Prepare
an Environmental Assessment for the Proposed Kirk Compressor Station
Project and Request for Comments on Environmental Issues

April 25, 2007.
    The staff of the Federal Energy Regulatory Commission (FERC or
Commission) will prepare an environmental assessment (EA) that will
discuss the environmental impacts of the Kirk Compressor Station
Project (Project), involving construction and operation of a compressor
station and appurtenances by Cheyenne Plains Gas Pipeline Company
(CPG).
    This notice announces the opening of the scoping process we will
use to gather input from the public and interested agencies on the
project. Your input will help the Commission staff determine which
issues need to be evaluated in the EA. Please note that the scoping
period will close on May 25, 2007.
    This notice is being sent to affected landowners within half mile
of the proposed compressor station; Federal, State, and local
government representatives and agencies; environmental and public
interest groups; Native American tribes; other interested parties in
this proceeding; and local libraries and newspapers. We encourage
government representatives to notify their constituents of this planned
project and encourage them to comment on their areas of concern.

Project Description

    CPG proposes to construct a new natural gas-fired compressor
station referred to as the Kirk Compressor Station which would consist
of a single 10,310 horsepower gas fired compressor unit and
appurtenances near Kirk in Yuma County, Colorado. The proposed Project
would permit the firm transportation of an additional 70,000 dekatherms
per day of natural gas to a delivery point near Greensburg, Kansas. The
general location of the project is shown on the map attached as
Appendix 1.\1\
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    \1\ The appendix referenced in this notice is not being printed
in the Federal Register. Copies of the appendix (map) are available
from the Commission's Public Reference Room, 888 First Street, NE.,
Washington, DC 20426, call<PHONE_NUMBER>. Copies of the appendix
will be sent to all those receiving this notice in the mail.
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    The Kirk Compressor Station would be constructed on a 40 acre tract
of land which is owned by CPG. Approximately 3.69 acres would be
permanently disturbed for placement of the compressor station and
access road. The current land use is fallow agricultural land. The
closest residence is located more than one mile away from the proposed
compressor station site (approximately 5,500 feet north northwest of
the site).

The EA Process

    The National Environmental Policy Act (NEPA) requires the
Commission to take into account the environmental impacts that could
result from an action whenever it considers the issuance of a
Certificate of Public Convenience and Necessity. NEPA also requires us
to

discover and address concerns the public may have about proposals. This
process is referred to as ``scoping''. The main goal of the scoping
process is to focus the analysis in the EA on the important
environmental issues. By this Notice of Intent, the Commission staff
requests public comments on the scope of the issues to address in the
EA. All comments received will be considered during the preparation of
the EA.
    The Commission's staff will prepare an EA that will describe the
potential environmental impacts that could result from construction and
operation of the proposed project under the general headings:

 Water resources, wetlands, and waterbodies
 Vegetation and wildlife
 Threatened and endangered species
 Cultural resources
 Geology and soils
 Land use and residences
 Air quality and noise
 Reliability and safety

    Our independent analysis of the issues will be presented in the EA.
We will also evaluate possible alternatives to the proposed project or
portions of the project, and make recommendations on how to lessen or
avoid impacts on the various resource areas.
    Depending on the comments received during the scoping process, the
EA may be published and mailed to federal, state, and local government
agencies; public interest groups; Native American tribes; interested
individuals; affected landowners, newspapers, libraries, and the
Commission's official service list for this proceeding. A 30-day
comment period will be allotted for review if the EA is published. We
will consider all comments submitted in any Commission Order that is
issued for the project.
    To ensure your comments are considered, please carefully follow the
instructions in the public participation section below.

Public Participation

    You can make a difference by providing us with your specific
comments or concerns about the project. By becoming a commenter, your
concerns will be addressed in the EA and considered by the Commission.
The more specific your comments, the more useful they will be.
Generally, comments are submitted regarding the potential environmental
effects, reasonable alternatives and measures to avoid or lessen
environmental impact.
    This notice and request for environmental comments is being sent to
affected landowners; federal, state and local government
representatives and agencies; environmental and public interest groups;
other interested parties in this proceeding; and local libraries and
newspapers. We encourage government representatives to notify their
constituents of this notice and to encourage their comments concerning
this proposed project.
    To ensure that your comments are properly recorded, please mail
them to our office on or before May 25, 2007. When filing comments
please:
     Send an original and two copies of your letter to:
Kimberly D. Bose, Secretary, Federal Energy Regulatory Commission, 888
First St., NE., Room 1A, Washington, DC 20426.
     Label one copy of the comments for the attention of Gas
Branch 2; DG2E; and Reference Docket No. CP07-128-000 on the original
and both copies.
    Please note that the Commission strongly encourages the electronic
filing (``eFiling'') of comments, interventions or protests to this
proceeding. Instructions on how to ``eFile'' comments can be found on
the Commission's Web site at http://www.ferc.gov under the ``Documents

and Filings'' link.
    We may mail the EA for comment. If you are interested in receiving
it, please return the Information Request (Appendix 2). If you do not
return the Information Request, you will be taken off the mailing list.

Becoming an Intervenor

    In addition to involvement in the EA scoping process, you may want
to become an official party to the proceeding known as an
``intervenor''. Intervenors play a more formal role in the process.
Among other things, intervenors have the right to receive copies of
case-related Commission documents and filings by other intervenors.
Likewise, each intervenor must send one electronic copy (using the
Commission's e-Filing system) or 14 paper copies of its filings to the
Secretary of the Commission and must end a copy of its filings to all
other parties on the Commission's service list for this proceeding. If
you want to become an intervenor you must file a motion to intervene
according to Rule 214 of the Commission's Rules of Practice and
Procedure (18 CFR 385.214). Only intervenors have the right to seek
rehearing of the Commission's decision.
    Affected landowners and parties with environmental concerns may be
granted intervenor status upon showing good cause by stating that they
have a clear and direct interest in this proceeding which would not be
adequately represented by any other parties. You do not need intervenor
status to have your environmental comments considered.

Environmental Mailing List

    An effort is being made to send this notice to all individuals,
organizations, and government entities interested in and/or potentially
affected by the proposed project. This includes all landowners who are
potential right-of-way grantors, whose property may be used temporarily
for project purposes, or who own homes within distances defined in the
Commission's regulations of certain aboveground facilities.

Additional Information

    Additional information about the project is available from the
Commission's Office of External Affairs, at 1-866-208-FERC or on the
FERC Internet Web site (http://www.ferc.gov) using the eLibrary link.

Click on the eLibrary link, click on ``General Search'' and enter the
docket number excluding the last three digits in the Docket Number
field. Be sure you have selected an appropriate date range. For
assistance, please contact FERC Online Support at
<EMAIL_ADDRESS>or toll free at 1-866-208-3676, or for TTY,

contact<PHONE_NUMBER>. The eLibrary link also provides access to the
texts of formal documents issued by the Commission, such as orders,
notices, and rulemakings.
    In addition, the Commission now offers a free service called
eSubscription which allows you to keep track of all formal issuances
and submittals in specific dockets. This can reduce the amount of time
you spend researching proceedings by automatically providing you with
notification of these filings, document summaries and direct links to
the documents. Go to http://www.ferc.gov/esubscribenow.htm.

    Finally, public meetings or site visits will be posted on the
Commission's calendar located at http://www.ferc.gov/EventCalendar/EventsList.aspx
 along with other related information.

Kimberly D. Bose,
Secretary.
[FR Doc. E7-8333 Filed 5-1-07; 8:45 am]

BILLING CODE 6717-01-P


[Federal Register: June 20, 2006 (Volume 71, Number 118)]
[Notices]
[Page 35466-35471]
[DOCID:fr20jn06-76]

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SECURITIES AND EXCHANGE COMMISSION

[Rel. No. IC-27393; File No. 812-13263]

ING USA Annuity and Life Insurance Company, et al.; Notice of
Application

June 13, 2006.
AGENCY: Securities and Exchange Commission (``SEC'' or ``Commission'').

ACTION: Notice of application for an order under Section 6(c) of the
Investment Company Act of 1940 (the ``Act'') granting exemptions from
the provisions of Sections 2(a)(32), and 27(i)(2)(A) of the Act and
Rule 22c-1 thereunder.

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Applicants: ING USA Annuity and Life Insurance Company (``ING USA''),
Separate Account B of ING USA Annuity and Life Insurance Company
(``Account B''), ReliaStar Life Insurance Company of New York
(``RLNY'') (ING USA and RLNY collectively, the ``Life Companies''),
Separate Account NY-B of ReliaStar Life Insurance Company of New York
(``Account NY-B'') (Account B and Account NY-B collectively, the
``Accounts''), and Directed Services, Inc. (``DSI'').

Summary of the Application: The Applicants request an order pursuant to
Section 6(c) of the Act exempting them from the provisions of Sections
2(a)(32) and 27(i)(2)(A) of the Act and Rule 22c-1 thereunder to the
extent necessary to permit recapture of certain bonuses applied to
purchase payments with respect to: (1) The deferred variable annuity
contracts and certificates described herein that the Life Companies
intend to issue (the ``Current Contracts''); (2) deferred variable
annuity contracts and certificates, substantially similar to the
Current Contracts that the Life Companies may issue in the future (the
``Future Contracts'') (Current Contracts and Future Contracts
collectively, the ``Contracts''); (3) any other separate accounts of
the Life Companies and their successors in interest (``Future
Accounts'') that support the Contracts; and (4) any National
Association of Securities Dealers, Inc. (``NASD'') member broker-
dealers controlling, controlled by, or under common control with any
Applicant, whether existing or created in the future, that in the
future, may act as principle underwriter for the Contracts (``Future
Underwriters''). The circumstances under which the Contracts would
allow the recapture of all or a portion of certain bonus credits
(previously applied to premium payments) are where the bonus credits
were applied and: (1) The contract owner exercises his or her ``free
look'' right; (2) the contract owner dies within twelve months of the
bonus credit being applied (unless the Contract is continued under the
spousal benefit continuation option); or (3) the contract owner takes a
partial withdrawal or surrenders the contract in the first seven or
four contract years, as applicable, pursuant to the bonus credit
recapture schedule set forth below.

Filing Date: The application was filed on February 28, 2006 and amended
and restated on May 3, 2006.

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 Secretary of the
Commission and serving the Applicants with a copy of the request,
personally or by mail. Hearing requests must be received by the
Commission by 5:30 p.m. on July 7, 2006, and should be accompanied by
proof of service on the 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 may request notification of a hearing by
writing to the Secretary of the Commission.

ADDRESSES: Secretary, Securities and Exchange Commission, 100 F Street,
NE., Washington, DC 20549-1090. Applicants, c/o Nicole J. Starr,
Counsel, ING USA Annuity and Life Insurance Company, 1475 Dunwoody
Drive, West Chester, Pennsylvania 19380.

FOR FURTHER INFORMATION CONTACT: Alison White, Senior Counsel, or Joyce
M. Pickholz, Branch Chief, Office of Insurance Products, Division of
Investment Management, at<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: The following is a summary of the
Application. The complete Application is available for a fee from the
Public Reference Branch of the Commission, 100 F Street, NE., Room
1580, Washington, DC 20549.

Applicants' Representations

    1. ING USA is an Iowa stock life insurance company, which was
originally incorporated in Minnesota on January 2, 1973. ING USA is a
wholly owned subsidiary of Lion Connecticut Holdings, Inc. (``Lion
Connecticut'') which in turn is an indirect wholly owned subsidiary of
ING Groep N.V. (``ING Group''), a global financial services holding
company based in The Netherlands. ING USA is authorized to sell
insurance and annuities in all states, except New York, and the
District of Columbia. ING USA is the depositor and sponsor for Account
B. ING USA also serves as depositor for several currently existing
Future Accounts, one or more of which may support obligations under the
Contracts. ING USA may establish one or more additional Future Accounts
for which it will serve as depositor.
    2. ING USA established Account B as a segregated investment account
under Delaware law on July 14, 1988. Account B is registered with the
Commission as a unit investment trust (File No. 811-5626), and
interests in Account B offered through the Contracts will be registered
under the Securities Act of 1933 on form N-4.
    3. RLNY is a New York stock life insurance company originally
incorporated on June 11, 1917 under the name, The Morris Plan Insurance
Society. RLNY is an indirect wholly owned subsidiary of ING Group. RLNY
is authorized to transact business in all states, the District of
Columbia, the Dominican Republic, and the Cayman Islands and is
principally engaged in the business of providing individual life
insurance and annuities, employee benefit products and services,
retirement plans, and life and health reinsurance. RLNY is the
depositor and sponsor for Account NY-B. RLNY also serves as depositor
for several currently existing Future Accounts, one or more of which
may support obligations under the Contracts. RLNY may establish one or
more additional Future Accounts for which it will serve as depositor.
    4. Account NY-B was established as a separate account of First
Golden American Life Insurance Company of

New York (``First Golden'') on June 13, 1996. It became a separate
account of RLNY as a result of the merger of First Golden into RLNY
effective April 1, 2002. Account NY-B is registered with the Commission
as a unit investment trust (File No. 811-7935).
    5. The Accounts currently are divided into a number of subaccounts.
Each subaccount invests exclusively in shares representing an interest
in a separate corresponding investment portfolio of one of several
series-type open-end management investment companies. The assets of the
Accounts support one or more varieties of variable annuity contracts,
including the Contracts.
    6. DSI is a wholly owned subsidiary of Lion Connecticut Holdings,
Inc., which is in turn a wholly owned subsidiary of ING Group. It
serves as the principal underwriter of a number of RLNY and ING USA
separate accounts registered as unit investment trusts under the Act,
including the Accounts, and is the distributor of the variable life
insurance contracts and variable annuity contracts issued through such
separate accounts, including the Contracts. DSI is registered as a
broker-dealer under the Securities Exchange Act of 1934 and is a member
of the NASD. DSI may act as principal underwriter for Future Accounts
of the Life Companies and as distributor for Contracts. Future
Underwriters also may act as principal underwriter for the Accounts and
as distributor for any of the Contracts.
    7. The Contracts are deferred combination variable and fixed
annuity contracts that a Life Company may issue to individuals or
groups on a ``non-qualified'' basis or in connection with employee
benefit plans that receive favorable Federal income tax treatment under
the Internal Revenue Code of 1986, as amended. The Contracts make
available a number of subaccounts of the Accounts to which an owner may
allocate net premium payments and associated bonus credits (described
below) and to which an owner may transfer contract value. There are
categories of subaccounts for purposes of determining benefits under
living benefits and death benefits. The Contracts also offer fixed-
interest allocation options under which a Life Company credits
guaranteed rates of interest for various periods. A market value
adjustment applies to the fixed-interest allocation options under the
Contracts. An owner may make transfers of contract value among and
between the subaccounts and, subject to certain restrictions, among and
between the subaccounts and the fixed-interest allocation options at
any time.
    8. The Contracts offer a variety of annuity payment options to an
owner. The owner may annuitize any time following the fifth contract
anniversary. If a contingent deferred sales charge remains at the time
of annuitization, the annuity payment option must include at least a 10
year fixed period. In the event of an owner's (or the annuitant's, if
any owner is not an individual) death prior to annuitization, the
beneficiary may elect to receive the death benefit in the form of one
of the annuity payment options instead of a lump sum. The Contracts
generally may only be purchased with a minimum initial premium of
$10,000 ($1,500 for certain employee benefit plans).
    9. A Life Company may deduct a premium tax charge from premium
payments in certain states, but otherwise deducts a charge for premium
taxes upon surrender or annuitization of the Contract or upon the
payment of a death benefit, depending upon the jurisdiction. The
Contracts provide for an annual administrative charge of $40 that a
Life Company deducts on each Contract Anniversary and upon a full
surrender of a Contract. A daily mortality and expense risk charge is
deducted from the assets of the Accounts at a rate depending on the
death benefit chosen as described below. The range of maximum mortality
and expense risk charges is 1.70% to 2.80% annually. A daily
administrative charge is deducted from the assets of the Account at an
annual rate of 0.15%. The Contracts provide for a charge of $25 for
each transfer of contract value in excess of twelve transfers per
contract year. The Life Companies currently waive this charge and
anticipate waiving this charge for the foreseeable future. The
Contracts have a surrender charge in the form of a contingent deferred
sales charge as described more fully below. If an owner chooses an
optional surrender charge schedule rider that reduces the length of
time during which the contingent deferred sales charge is applied, an
additional charge will be deducted as described below. A quarterly
charge is assessed depending on the type of optional living benefit
chosen, if any, as described below. Lastly, if an owner chooses the
optional premium credit rider, an additional charge will be deducted as
described below.
    10. The contingent deferred sales charge (the ``CDSC'') is equal to
a percentage of each premium payment surrendered or withdrawn. The CDSC
is separately calculated and applied to each premium payment at any
time that the premium payment (or part of the premium payment) is
surrendered or withdrawn. The CDSC applicable to each premium payment
diminishes to zero as the payment ages. The Contracts offer a standard
CDSC schedule as follows:

------------------------------------------------------------------------
                                                                Charge
     Number of full years since payment of each premium       (percent)
------------------------------------------------------------------------
0..........................................................          8.0
1..........................................................          7.0
2..........................................................          6.0
3..........................................................          5.0
4..........................................................          4.0
5..........................................................          3.0
6..........................................................          2.0
7+.........................................................          0.0
------------------------------------------------------------------------

However, the owner may choose a shorter optional CDSC schedule for an
extra charge (see below). The optional CDSC schedule is as follows:

------------------------------------------------------------------------
                                                                Charge
     Number of full years since payment of each premium       (percent)
------------------------------------------------------------------------
0..........................................................          8.0
1..........................................................          7.0
2..........................................................          6.0
3..........................................................          5.0
4+.........................................................          0.0
------------------------------------------------------------------------

    The charge for the optional CDSC schedule is currently 0.45% of
contract value per year, assessed quarterly for four years. The maximum
charge for the optional CDSC schedule will be 0.90% of contract value
per year, assessed quarterly for four years.

    11. The CDSC does not apply when a death benefit is payable under
the contracts or to contract value representing an annual free
withdrawal amount or to contract value in excess of aggregate premium
payments (less prior withdrawals of premium payments) (``earnings'').
The CDSC is calculated using the assumption that premium payments are
withdrawn on a first-in, first-out basis. The CDSC also is calculated
using the assumption that contract value is withdrawn in the following
order: (a) The annual free withdrawal amount for that contract year;
(b) premium payments; and (c) earnings. The annual free withdrawal
amount is 10% of contract value, measured at the time of withdrawal,
less any prior withdrawals made in that contract year.
    12. Subject to state availability, an owner may purchase optional
living benefit riders. The minimum guaranteed income benefit rider (the
``MGIB Rider'') guarantees that a minimum amount of annuity income will
be available to the owner, regardless of fluctuating market conditions,
if the owner annuitizes on or after the rider's exercise date. The
minimum guaranteed amount of annuity income will depend on the amount
of

premiums paid and any credits received, if applicable, during the
specified number of contract years after the owner purchases the MGIB
Rider, how the owner allocates the contract value among the subaccounts
and fixed-interest allocations, and any withdrawals and transfers the
owner makes while the MGIB Rider is in effect. A Life Company will
deduct a maximum annual charge of 1.50% (currently, 0.75%) quarterly of
the MGIB Charge Base (as defined in the MGIB Rider).
    13. The minimum guaranteed withdrawal benefit rider (the ``MGWB
Rider'') guarantees that a certain amount may be withdrawn annually
regardless of market performance and even if the contract value is
reduced to zero. Some Contracts offer the guaranteed withdrawal amount
until the MGWB Base (as defined in the MGWB Rider) is completely
recovered. Most Contracts offer the guaranteed withdrawal amount for
life. The Life Companies expect to extend the guaranteed withdrawal
amount for until the death of the second designated life. The MGWB
Rider is subject to conditions and limitations. A Life Company will
deduct a maximum annual charge of 1.50% (currently, between 0.45% and
0.75%, depending on the rider and Contract) quarterly of the charge
basis (as set forth in the MGWB Rider).
    14. If an owner dies before the annuity start date, the Contracts
provide for a death benefit payable to a beneficiary, computed as of
the date a Life Company receives written notice and due proof of death.
The death benefit payable to the beneficiary depends on the death
benefit option selected by the owner: (a) Standard death benefit; (b)
ratchet death benefit; or (c) rollup death benefit. In the future, a
Life Company may also offer an optional earnings multiplier benefit
rider.
    15. The standard death benefit equals the greater of the (a) base
death benefit, and (b) premium and bonus credits, adjusted pro-rata for
withdrawals and transfers, less total bonus credits applied since or
within twelve months prior to death. The base death benefit is the
greater of the (1) contract value on the claim date, less bonus credits
applied since or within twelve months prior to death, and (2) cash
surrender value. The maximum daily mortality and risk charge for the
standard death benefit is the annual rate of 1.70% (currently 0.85%). A
Life Company may, in the future, offer the base death benefit as a
stand alone option for the maximum daily mortality and risk charge of
2.00% annually.
    16. The ratchet death benefit equals the greater of the (a)
standard death benefit, and (b) greatest contract value as of any
quarterly or annual, as applicable, contract anniversary occurring on
or prior to the maximum attained age, adjusted for new premiums and
bonus credits, reduced pro rata for withdrawals and transfers, less
bonus credits applied since or within twelve months prior to death. The
maximum daily mortality and risk charge for the ratchet death benefit
is the annual rate of 2.20% (currently 1.10%).
    17. The roll-up death benefit equals the greater of (a) the ratchet
death benefit, and (b) the lesser of (1) a specified maximum percentage
of all premiums plus bonus credits adjusted pro-rata for withdrawals
and transfers, or (2) premiums and bonus credits, if applicable,
adjusted for withdrawals and transfers accumulated at a specified
percentage up to the maximum attained age, less bonus credits applied
since or within twelve months prior to death. The maximum daily
mortality and risk charge for the roll-up death benefit is the annual
rate of 2.80% (currently 1.40%).
    18. The earnings multiplier benefit rider provides a separate
additional death benefit option. This rider provides additional funds
to the beneficiary that be used to help pay the taxes on the death
benefit. Upon the owner's death, the beneficiary receives an amount
equal to a percentage of the Contract's earnings, if any, up to a
maximum amount. The maximum charge is 0.50% (currently 0.25%).
    19. The Life Companies intend to offer an optional bonus credit
rider under the Contracts, which the owner may elect at the time of
application. Under the bonus credit rider, a Life Company credits the
contract value in the subaccounts and the fixed-interest allocations
with a bonus credit amount that is a percentage of each premium payment
made. The bonus credit applies upon issuance of the Contract and is
based upon premium payments received within the first contract year. A
Life Company allocates the bonus credit for the applicable premium
payment among the subaccounts and fixed-interest allocations the owner
selects in proportion to the premium payment allocated to each
investment option. If the owner has elected to retain the standard CDSC
schedule, the bonus credit equals 4% of each premium payment made in
the first contract year. If the owner has elected to have the optional
CDSC schedule rider, the bonus credit equals 2% of each premium payment
made in the first contract year. A Life Company reserves the right to
increase or decrease the amount of the bonus credit or discontinue the
bonus credit rider in the future.
    20. The maximum annual charge assessed for the bonus credit rider
(as a percentage of contract value) is 0.57% (currently, 0.55%) for the
first seven contract years if the owner retains the standard CDSC
schedule and 0.50% (currently, 0.45%) for the first four contract years
if the owner selects the optional CDSC schedule rider. The charge is
deducted from the contract value in the subaccounts and from amounts in
fixed interest allocations by crediting a lower interest rate.
    21. Under the bonus credit rider, a Life Company recaptures or
retains the bonus credits in several circumstances. First, a Life
Company recaptures or retains 100% of the bonus credits in the event
that the owner exercises his or her cancellation right during the
``free look'' period. Second, a Life Company recaptures the bonus
credits applied to premium payments made since or within twelve months
of the date as of which a death benefit is computed (unless the
Contract is continued under the spousal benefit continuation option).
Third, a Life Company also will recapture part or all of the applicable
bonus credit upon surrender or withdrawal of corresponding premium
payments.
    22. In the event of a surrender or withdrawal, the amount of the
bonus credit a Life Company will recapture is based on the percentage
of the corresponding premium payment withdrawn and the contract year of
surrender or withdrawal. For each premium payment, the portion of the
bonus credit subject to recapture is the total bonus credit amount
attributable to that premium payment multiplied by the percentage of
the corresponding premium payment withdrawn. The dollar amount of the
bonus credit recaptured is the portion of the bonus credit subject to
recapture multiplied by the applicable recapture percentage. The
recapture percentage applicable to each bonus credit depends on which
CDSC is in effect and when the premium payment associated with such
bonus credit was withdrawn. If the standard CDSC schedule is chosen,
the recapture percentage applicable to each bonus credit is level for
the first two contract years and diminishes to zero after the seventh
contract year. The schedule is as follows:

------------------------------------------------------------------------
                                                                Bonus
                                                                credit
          Contract year of surrender or withdrawal            recapture
                                                              percentage
                                                              (percent)
------------------------------------------------------------------------
Years 1-2..................................................          100
Years 3-4..................................................           75
Years 5-6..................................................           50
Year 7.....................................................           25
Years 8+...................................................            0
------------------------------------------------------------------------

If the optional CDSC schedule rider is chosen, the recapture percentage
applicable to each bonus credit diminishes to zero after the fourth
contract year. The schedule is as follows:

------------------------------------------------------------------------
                                                                Bonus
                                                                credit
          Contract year of surrender or withdrawal            recapture
                                                              percentage
                                                              (percent)
------------------------------------------------------------------------
Year 1.....................................................          100
Year 2.....................................................           75
Year 3.....................................................           50
Year 4.....................................................           25
Years 5+...................................................            0
------------------------------------------------------------------------

A Life Company will not recapture bonus credits attributable to premium
payments withdrawn representing the annual free withdrawal amount or to
contract value representing earnings.

    23. Because of the recapture provisions discussed above, the value
of a bonus credit only fully vests or belongs irrevocably to the owner
when the recapture period for the bonus credit expires. All bonus
credits vest over the 4-year period or 7-year period, as applicable,
after a Life Company grants them. Under the bonus credit rider, a Life
Company applies the bonus credit to an owner's contract value either by
``purchasing'' accumulation units of an appropriate subaccount or
adding to the owner's fixed interest allocation option values.
    24. With regard to variable contract value, several consequences
flow from the foregoing. First, increases in the value of accumulation
units representing bonus credits accrue to the owner immediately, but
the initial value of such units only belongs to the owner when, or to
the extent that, each vests. Second, decreases in the value of
accumulation units representing bonus credits do not diminish the
dollar amount of contract value subject to recapture. Therefore,
additional accumulation units must become subject to recapture as their
value decreases. Stated differently, the proportionate share of any
owner's variable contract value (or the owner's interest in the
Account) that a Life Company can ``recapture'' increases as variable
contract value (or the owner's interest in the Account) decreases. This
dilutes somewhat the owner's interest in the Account vis-[agrave]-vis a
Life Company and other owners, and in his or her variable contract
value vis-[agrave]-vis a Life Company. Lastly, because it is not
administratively feasible to track the unvested value of bonus credits
in the Account, a Life Company deducts the daily mortality and expense
risk charge and the daily administrative charge from the entire net
asset value of the Account. As a result, the daily mortality and
expense risk charge, the daily administrative charge, and the daily
bonus credit rider paid by any owner is greater than that which he or
she would pay without the bonus credit.
    25. Applicants previously have received an order for exemptive
relief to permit the recapture of certain bonus credits on the prior
contracts in similar circumstances to those described above. That order
encompassed relief for future contracts substantially similar in all
material respects to the prior contracts. Applicants assert that the
Contracts described in the application differ from the prior contracts
in several respects. Charges are slightly higher. The Contracts also
offer living benefits and death benefit options not available with the
prior contracts. Because the Applicants believe the Commission may view
these differences as material, Applicants are seeking an additional
order as set forth in the application.

Legal Analysis

    1. The Applicants hereby request that the Commission issue an order
pursuant to Section 6(c) of the Act to exempt the Applicants with
respect to: (a) The Contracts; (b) Future Accounts that support the
Contracts; and (c) Future Underwriters from the provisions of Sections
2(a)(32) and 27(i)(2)(A) of the Act and Rule 22c-1 thereunder, to the
extent necessary to permit the recapture of all or a portion of the
bonus credits (previously applied to premium payments) in the
circumstances described above.
    2. Section 6(c) of the Act authorizes the Commission to exempt any
person, security or transaction, or any class or classes of persons,
securities or transactions from the provisions of the Act and the rules
promulgated thereunder, if and to the extent that such exemption is
necessary or appropriate in the public interest and consistent with the
protection of investors and the purposes fairly intended by the policy
and provisions of the Act.
    3. Subsection (i) of Section 27 provides that Section 27 does not
apply to any registered separate account supporting variable annuity
contracts, or to the sponsoring insurance company and principal
underwriter of such account, except as provided in paragraph (2) of
subsection (i). Paragraph (2) provides that it shall be unlawful for a
registered separate account or sponsoring insurance company to sell a
variable annuity contract supported by the separate account unless the
`` * * * contract is a redeemable security; and * * * [t]he insurance
company complies with Section 26(e)* * *''
    4. Section 2(a)(32) defines a ``redeemable security'' as any
security, other than short-term, paper, under the terms of which the
holder, upon presentation to the issuer, is entitled to receive
approximately his proportionate share of the issuer's current net
assets, or the cash equivalent thereof.
    5. Rule 22c-1 imposes requirements with respect to both the amount
payable on redemption of a redeemable security and the time as of which
such amount is calculated. Specifically, Rule 22c-1, in pertinent part,
prohibits a registered investment company issuing any redeemable
security, a person designated in such issuer's prospectus as authorized
to consummate transactions in any such security, and a principal
underwriter of, or dealer in, such security from selling, redeeming or
repurchasing any such security, except at a price based on the current
net asset value of such security which is next computed after receipt
of a tender of such security for redemption, or of an order to purchase
or sell such security.
    6. To the extent that the recapture of the bonus credits arguably
could be seen as a discount from the net asset value, or arguably could
be viewed as resulting in the payment to an owner of less than the
proportional share of the issuer's net assets, in violation of Sections
2(a)(32) or 27(i)(2)(A) of the Act, the bonus credit recapture would
trigger the need for relief absent some exemption from the Act. Rule
6c-8 provides, in relevant part, that a registered separate account,
and any depositor of such account, shall be exempt from Sections
2(a)(32), 27(c)(1), 27(c)(2) and 27(d) of the Act and Rule 22c-1
thereunder to the extent necessary to permit them to impose a deferred
sales loan on any variable annuity contract participating in such
account. However, the bonus credit recapture is not a sales load.
Rather, it is a recapture of a bonus credit previously applied to an
owner's premium payments. A Life Company provides the bonus credit from
its general account on a guaranteed basis. The Contracts are designed
to be long-term investment vehicles. In undertaking this financial
obligation, a

Life Company contemplates that an owner will retain a Contract over an
extended period, consistent with the long-term nature of the Contracts.
A Life Company designed the product so that it would recover its costs
(including the bonus credits) over an anticipated duration while a
Contract is in force. If an owner withdraws his or her money during the
free look period, a death benefit is paid, or a withdrawal or surrender
is made before this anticipated period, a Life Company must recapture
the bonus credits subject to recapture in order to avoid a loss.
    7. Applicants submit that the proposed bonus credit rider would not
violate Sections 2(a)(32) or 27(i)(2)(A) of the Act. A Life Company
would grant bonus credits out of its general account assets and the
amount of the bonus credits (although not the earnings on such amounts)
would remain the Life Company's until such amounts vest with the owner.
Until the appropriate recapture period expires, a Life Company retains
the right to and interest in each owner's contract value representing
the dollar amount of any unvested bonus credits. Therefore, if a Life
Company recaptures any bonus credit or part of a bonus credit in the
circumstances described above, it would merely be retrieving its own
assets. To the extent that a Life Company may grant and recapture bonus
credits in connection with variable contract value, it would not, at
either time, deprive any owner of his or her then proportionate share
of the Account's assets.
    8. Applicants further submit that the dynamics of the proposed
bonus credit rider would not violate Sections 2(a)(32) or 27(i)(2)(A)
of the Act because the recapture of bonus credits would not, at any
time, deprive an owner of his or her proportionate share of the current
net assets of an Account. Section 2(a)(32) defines a redeemable
security as one ``under the terms of which the holder, upon
presentation to the issuer, is entitled to receive approximately his
proportionate share of the issuer's current net asset value.'' Taken
together, these two sections of the Act do not require that the holder
receive the exact proportionate share that his or her security
represented at a prior time. Therefore, the fact that the proposed
bonus credit provisions have a dynamic element that may cause the
relative ownership positions of a Life Company and a Contract owner to
shift due to Account performance and the vesting schedule of such
credits, would not cause the provisions to conflict with Sections
2(a)(32) or 27(i)(2)(A). Nonetheless, in order to avoid any uncertainty
as to full compliance with the Act, Applicants seek exemptions from
these two sections.
    9. A Life Company's granting of bonus credits would have the result
of increasing an owner's contract value in a way that arguably could be
viewed as the purchase of an interest in the Account at a price below
the current net asset value. Similarly, a Life Company's recapture of
any bonus credit arguably could be viewed as the redemption of such an
interest at a price above the current net asset value. If such is the
case, then the bonus credit rider arguably could be viewed as
conflicting with Rule 22c-1. Applicants contend that these are not
correct interpretations or applications of these statutory and
regulatory provisions. Applicants also contend that the bonus credits
do not violate Rule 22c-1.
    10. Rule 22c-1 was intended to eliminate or reduce, as far as was
reasonably practicable, (a) the dilution of the value of outstanding
redeemable securities of registered investment companies through their
sale at a price below net asset value or their redemption at a price
above net asset value, or (b) other unfair results, including
speculative trading practices. Applicants submit that the evils
prompting the adoption of Rule 22c-1 were primarily the result of
backward pricing, the practice of basing the price of a mutual fund
share on the net asset value per share determined as of the close of
the market on the previous day. Backward pricing permitted certain
investors to take advantage of increases or decreases in net asset
value that were not yet reflected in the price, thereby diluting the
values of outstanding shares.
    11. The bonus credit rider does not give rise to either of the two
evils that Rule 22c-1 was designed to address. First, the proposed
bonus credit rider poses no such threat of dilution. An owner's
interest in his or her contract value or in the Account would always be
offered at a price based on the net asset value next calculated after
receipt of the order. The granting of a bonus credit does not reflect a
reduction of that price. Instead, a Life Company would purchase with
its general account assets, on behalf of the owner, an interest in the
Account equal to the bonus credit. Because the bonus credit will be
paid out of the general account assets, not the Account assets, no
dilution will occur as a result of the bonus credit. Recaptures of
bonus credits result in a redemption of a Life Company's interest in an
owner's contract value or in the Account at a price determined based on
the Account's current net asset value and not at an inflated price.
Moreover, the amount recaptured will always equal the amount that a
Life Company paid from its general account for the bonus credits.
Similarly, although an owner is entitled to retain any investment gains
attributable to the bonus credits, the amount of such gains would
always be computed at a price determined based on net asset value.
    12. Second, Applicants submit that speculative trading practices
calculated to take advantage of backward pricing will not occur as a
result of a Life Company's recapture of the bonus credit. Variable
annuities are designed for long-term investment, and by their nature,
do not lend themselves to the kind of speculative short-term trading
that Rule 22c-1 was designed to prevent. More to the point, the bonus
credit recapture simply does not create the opportunity for speculative
trading.
    13. Rule 22c-1 should have no application to the bonus credit
available, as neither of the harms that Rule 22c-1 was intended to
address arise in connection with the proposed bonus credit rider.
Nonetheless, in order to avoid any uncertainty as to full compliance
with the Act, Applicants request an exemption from the provisions of
Rule 22c-1.
    14. The Applicants submit that the Commission should grant the
exemptions requested in the application even if the bonus credit rider
arguably conflicts with Sections 2(a)(32), or 27(i)(2)(A) of the Act or
Rule 22c-1 thereunder. The bonus credit is generally beneficial to an
owner. The recapture tempers this benefit somewhat, but unless the
owner dies, the owner retains the ability to avoid the bonus credit
recapture in the circumstances described herein. While there would be a
small downside in a declining market where losses on the bonus credit
amount would vest with him or her immediately, it is the converse of
the benefits an owner would receive on the bonus amounts in a rising
market because earnings on the bonus credit amount vest with him or her
immediately. As any earnings on bonus credits applied would not be
subject to recapture and thus would be immediately available to an
owner, likewise any losses on bonus credits would also not be subject
to recapture and thus would be immediately available to an owner. The
bonus credit recapture does not diminish the overall value of the bonus
credits.
    15. The bonus credit recapture provision is necessary for a Life
Company to offer the bonus credits and avoid anti-selection against it.
It would be unfair to a Life Company to permit

an owner to keep his or her bonus credits upon his or her exercise of
the Contract's ``free look'' provision. Because no CDSC applies to the
exercise of the ``free look'' provision, the owner could obtain a quick
profit in the amount of the bonus credit at a Life Company's expense by
exercising that right. Similarly, the owner could take advantage of the
bonus credit by taking withdrawals within the recapture period, because
the cost of providing the bonus credit is recouped through charges
imposed over a period of years. Likewise, because no additional CDSC
applies upon death of an owner (or annuitant), a death shortly after
the award of bonus credits would afford an owner or a beneficiary a
similar profit at a Life Company's expense.
    16. In the event of such profits to an owner or beneficiary, a Life
Company could not recover the cost of granting the bonus credits. This
is because a Life Company intends to recoup the costs of providing the
bonus credits through the charges under the bonus credit rider and the
Contract, particularly the daily mortality and expense risk charge and
the daily administrative charge. If the profits described above are
permitted, an owner could take advantage of them, reducing the base
from which the daily charges are deducted and greatly increasing the
amount of bonus credits that a Life Company must provide. Therefore,
the recapture provisions are a price of offering the bonus credits. A
Life Company simply cannot offer the proposed bonus credits without the
ability to recapture those credits in the limited circumstances
described herein.
    17. Applicants state that the Commission's authority under Section
6(c) of the Act to grant exemptions from various provisions of the Act
and rules thereunder is broad enough to permit orders of exemption that
cover classes of unidentified persons. Applicants request an order of
the Commission that would exempt them, the Life Companies' successors
in interest, Future Accounts and Future Underwriters from the
provisions of Sections 2(a)(32) and 27(i)(2)(A) of the Act and Rule
22c-1 thereunder with respect to the Contracts. The exemption of these
classes of persons is appropriate in the public interest and consistent
with the protection of investors and the purposes fairly intended by
the policy and provisions of the Act because all of the potential
members of the class could obtain the foregoing exemptions for
themselves on the same basis as the Applicants, but only at a cost to
each of them that is not justified by any public policy purpose. As
discussed below, the requested exemptions would only extend to persons
that in all material respects are the same as the Applicants. The
Commission has previously granted exemptions to classes of similarly
situated persons in various contexts and in a wide variety of
circumstances, including class exemptions for recapturing bonus credits
under variable annuity contracts.
    18. Applicants represent that any contracts in the future will be
substantially similar in all material respects to the Contracts, but
particularly with respect to the bonus credits and recapture of bonus
credits, and that each factual statement and representation about the
bonus credit rider will be equally true of any Contracts in the future.
Applicants also represent that each material representation made by
them about the Account and DSI will be equally true of Future Accounts
and Future Underwriters, to the extent that such representations relate
to the issues discussed in this Application. In particular, each Future
Underwriter will be registered as a broker-dealer under the Securities
Exchange Act of 1934 and be an NASD member.
    19. For the reasons above, Applicants submit that the bonus credit
rider involves none of the abuses to which provision of the Act and
rules thereunder are directed. The owner will always retain the
investment experience attributable to the bonus credit and will retain
the principal amount in all cases except under the circumstances
described herein. Further, a Life Company should be able to recapture
such bonus credits to limit potential losses associated with such bonus
credits.

Conclusion

    Applicants submit that the exemptions requested are necessary or
appropriate in the public interest, consistent with the protection of
investors and the purposes fairly intended by the policy and provisions
of the Act, and consistent with and supported by Commission precedent.
Applicants also submit, based on the analysis listed above, that the
provisions for recapture of any bonus credit under the Contracts does
not violate Section 2(a)(32) and 27(i)(2)(A) of the Act and Rule 22c-1
thereunder. The Applicants hereby request that the Commission issue an
order pursuant to Section 6(c) of the Act to exempt the Applicants with
respect to: (a) The Contracts; (b) Future Accounts that support the
Contracts; and (c) Future Underwriters from the provisions of Sections
2(a)(32) and 27(i)(2)(A) of the Act and Rule 22c-1 thereunder, to the
extent necessary to permit the recapture of all or a portion of the
bonus credits (previously applied to premium payments) in the
circumstances described above.

    For the Commission, by the Division of Investment Management,
pursuant to delegated authority.
Nancy M. Morris,
Secretary.
[FR Doc. E6-9607 Filed 6-19-06; 8:45 am]

BILLING CODE 8010-01-P


[Federal Register Volume 76, Number 63 (Friday, April 1, 2011)]
[Notices]
[Pages 18274-18276]
[FR Doc No: 2011-7730]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-64137; File No. SR-Phlx-2011-37]

Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by NASDAQ OMX PHLX LLC Relating
to Complex Order Fees

March 28, 2011.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on March 21, 2011, NASDAQ OMX PHLX LLC (``Phlx'' or ``Exchange'') filed
with the Securities and Exchange Commission (``SEC'' or ``Commission'')
the proposed rule change as described in Items I, II, and III, below,
which Items have been prepared by the Exchange. The Commission is
publishing this notice to solicit comments on the proposed rule change
from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to amend its Complex Order \3\ Fees in
Section I of its Fee Schedule titled Rebates and Fees for Adding and
Removing Liquidity in Select Symbols.
---------------------------------------------------------------------------

    \3\ A Complex Order is any order involving the simultaneous
purchase and/or sale of two or more different options series in the
same underlying security, priced at a net debit or credit based on
the relative prices of the individual components, for the same
account, for the purpose of executing a particular investment
strategy. Furthermore, a Complex Order can also be a stock-option
order, which is an order to buy or sell a stated number of units of
an underlying stock or ETF coupled with the purchase or sale of
options contract(s). See Exchange Rule 1080, Commentary .08(a)(i).
---------------------------------------------------------------------------

    While changes to the Fee Schedule pursuant to this proposal are
effective upon filing, the Exchange has designated these changes to be
operative on April 1, 2011.
    The text of the proposed rule change is available on the Exchange's
Website at http://nasdaqtrader.com/micro.aspx?id=PHLXfilings, at the
principal office of the Exchange, and at the Commission's Public
Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of the proposed rule change is to amend Section I, Part
B of the Exchange's Fee Schedule, titled ``Complex Order'' to pay a
Customer Complex Order Rebate for Adding Liquidity of $0.25 per
contract in certain symbols, specifically options overlying: (i)
Standard and Poor's Depositary Receipts/SPDRs (``SPY''); \4\ (ii) the
PowerShares QQQ Trust (``QQQQ'')[reg]; and Apple, Inc. (AAPL), in order
to attract additional Customer order flow in those symbols.
---------------------------------------------------------------------------

    \4\ SPY options are based on the SPDR exchange-traded fund
(``ETF''), which is designed to track the performance of the S&P 500
Index.
---------------------------------------------------------------------------

    Currently, the Exchange pays a $0.24 per contract Customer Complex
Order Rebate for Adding Liquidity in all Select Symbols.\5\ The
Exchange is proposing to pay a $0.25 per contract Rebate for Adding
Liquidity for Customer Complex Orders in only the following symbols:
SPY, QQQQ and AAPL. Other market participants would not be entitled to
the Rebate for Adding Liquidity.\6\ The Exchange would continue to pay
Customers a rebate of $0.24 per contract for transacting a Customer
Complex Order in all other Select Symbols, except SPY, QQQ and AAPL
which would receive the $0.25 per contract rebate.
---------------------------------------------------------------------------

    \5\ A list of all symbols subject to the Rebates and Fees for
Adding and Removing Liquidity are listed in Section I of the
Exchange's Fee Schedule and titled ``Select Symbols.''
    \6\ The only market participant that receives a Rebate for
Adding Liquidity for Complex Orders today is a Customer.
---------------------------------------------------------------------------

    The Exchange does not propose to amend the fees in Section I, Part
A titled ``Single contra-side order.''
2. Statutory Basis
    The Exchange believes that its proposal to amend its Fee Schedule
is consistent with Section 6(b) of the Act \7\ in general, and furthers
the objectives of Section 6(b)(4) of the Act \8\ in particular, in that
it is an equitable allocation of reasonable fees and other charges
among Exchange members. The Exchange also believes that there is an
equitable allocation of reasonable rebates among Exchange members.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(4).
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    The Exchange believes that it is reasonable to only pay a Rebate
for Adding Liquidity to Customers because this Customer rebate would
attract Customer order flow to the Exchange for the benefit of all
market participants. The Exchange believes that the proposal is
equitable because by paying a Rebate for Adding Liquidity to Customers,
all market participants would benefit from the increased liquidity
which increased Customer order flow would bring to the Exchange.
    Further, the Exchange believes that it is reasonable to pay a
different rebate for transacting equity options in certain symbols.
NYSE Arca, Inc. (``NYSE Arca'') pays an additional $.05 per contract
credit above the stated post liquidity credit for electronic
transactions in options overlying SPY, C, BAC, QQQQ, AAPL, IWM, XLF,
GLD, EEM, GE, UNG, FAZ, DIA, GDX, and USO which are referred to as the
``premium tier.'' \9\ The Exchange is proposing to pay different
rebates for different symbols similar to the manner in which NYSE Arca
pays an additional contract credit in certain symbols.
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    \9\ See NYSE Arca's Fee Schedule.
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    The Exchange believes that its proposal to pay a higher rebate for
transactions in equity options in SPY, QQQQ and AAPL, as compared to
the other Select Symbols, is equitable because the Exchange would
uniformly pay the same rebates for all Customer Complex Orders in these
three symbols.
    The Exchange operates in a highly competitive market comprised of
nine U.S. options exchanges in which sophisticated and knowledgeable
market participants can readily send order flow to competing exchanges
if they deem fee levels at a particular exchange to be excessive. The
Exchange believes that the Complex Order fees and rebates it assesses
must be competitive with fees and rebates assessed in place on other
exchanges. The Exchange believes that this competitive marketplace
impacts the fees and rebates present on the Exchange today and
influences the proposals set forth above.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act.

C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others

    No written comments were either solicited or received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act.\10\ At any time within 60 days of the
filing of the proposed rule change, the Commission summarily may
temporarily suspend such rule change if it appears to the Commission
that such action is necessary or appropriate in the public interest,
for the protection of investors, or otherwise in furtherance of the
purposes of the Act. If the Commission takes such action, the
Commission shall institute proceedings to determine whether the
proposed rule should be approved or disapproved.
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    \10\ 15 U.S.C. 78s(b)(3)(A)(ii).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an e-mail to<EMAIL_ADDRESS>Please include
File Number SR-Phlx-2011-37 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-Phlx-2011-37. 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 Web site viewing and

printing in the Commission's Public Reference Room on official business
days between the hours of 10 a.m. and 3 p.m. Copies of such filing also
will be available for inspection and copying at the principal office of
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-
Phlx-2011-37 and should be submitted on or before April 22, 2011.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-7730 Filed 3-31-11; 8:45 am]
BILLING CODE 8011-01-P