[Federal Register: July 17, 2007 (Volume 72, Number 136)]
[Notices]
[Page 39121-39127]
[DOCID:fr17jy07-87]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56049; File No. SR-Phlx-2007-20]

Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.;
Notice of Filing and Order Granting Accelerated Approval of a Proposed
Rule Change as Modified by Amendment No. 1 Thereto Adopting Generic
Listing Standards for Exchange-Traded Funds Based on International or
Global Indexes or Indexes Described in Exchange Rules Previously
Approved by the Commission as Underlying Benchmarks for Derivative
Securities

July 11, 2007.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'')\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on March 9, 2007, the Philadelphia Stock Exchange, Inc. (``Phlx'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been substantially prepared by Phlx. On June
18, 2007, Phlx filed Amendment No. 1 to the proposal. This order
provides notice of the proposal, as amended, and approves the proposal
on an accelerated basis.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    Phlx proposes to revise its listing standards, adopted pursuant to
Rule 19b-4(e),\3\ in Phlx Rule 803 to include generic listing standards
for Trust Shares and Index Fund Shares (``IFSs'') (which together with
Trust Shares are referred to as ``exchange-traded funds'' or ``ETFs'')
that are based on

international or global indexes, or on indexes described in exchange
rules that have been previously approved by the Commission for the
trading of ETFs or other specified index-based securities.
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    \3\ 17 CFR 240.19b-4(e).
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    The text of the proposed rule change is available at Phlx, from the
Commission's Public Reference Room, and on Phlx's Web site (http://www.Phlx.com
).

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

    In its filing with the Commission, Phlx included statements
concerning the purpose of, and basis for, the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item III below. Phlx 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 provide for the more
efficient and timely listing and trading of ETFs. This proposal would
enable the Exchange to list and trade ETFs pursuant to Rule 19b-4(e)
under the Act \4\ if each of the conditions set forth in Phlx Rules
803(i) and (l) is satisfied. Rule 19b-4(e) provides that the listing
and trading of a new derivative securities product by a self-regulatory
organization (``SRO'') shall not be deemed a proposed rule change,
pursuant to paragraph (c)(1) of Rule 19b-4,\5\ if the Commission has
approved, pursuant to Section 19(b) of the Act, the trading rules,
procedures, and listing standards for the product class that would
include the new derivatives securities product, and the SRO has a
surveillance program for the product class.\6\
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    \4\ 17 CFR 240.19b-4(e).
    \5\ 17 CFR 240.19b-4(c)(1).
    \6\ When relying on Rule 19b-4(e), the SRO must submit Form 19b-
4(e) to the Commission within five business days after it begins
trading the new derivative securities products. See 17 CFR 240.19b-
4(e)(2)(ii).
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Background
    Currently, Phlx Rule 803(i) provides standards for listing Trust
Shares on Phlx. A Trust Share is a security based on a unit investment
trust registered under the Investment Company Act of 1940 (``1940
Act''),\7\ which holds the securities that comprise an index or
portfolio underlying a series of Trust Shares. Phlx Rule 803(l)
provides standards for listing IFSs, which are securities issued by an
open-end management investment company registered under the 1940 Act
(i.e., an open-end mutual fund) based on a portfolio of stocks that
seeks to provide investment results that correspond generally to the
price and yield performance of a specified foreign or domestic stock
index.
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    \7\ 15 U.S.C. 80a.
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    Pursuant to Phlx Rule 803(i), Trust Shares that are eligible for
listing on the Exchange must be issued in a specified aggregate minimum
number in return for a deposit of specified securities and/or a cash
amount. When aggregated in the same specified minimum number, the Trust
Shares must be redeemable from the Trust for the securities and/or
cash. Pursuant to Phlx Rule 803(l), IFSs that are eligible for listing
on the Exchange must be issued in a specified aggregate minimum number
in return for a deposit of specified securities and/or a cash amount,
with a value equal to the next determined net asset value (``NAV'').
When aggregated in the same specified minimum number, IFSs must be
redeemable by the issuer for the securities and/or cash, with a value
equal to the next determined NAV. The NAV is calculated once a day
after the close of the regular trading day.\8\
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    \8\ See e-mail from John Dayton, Director and Counsel, Phlx, to
Natasha Cowen, Special Counsel, Division of Market Regulation
(``Division''), Commission, dated July 6, 2007.
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    To meet the investment objective of providing investment returns
that correspond to the price and the dividend and yield performance of
the underlying index, an ETF may use a ``replication'' strategy or a
``representative sampling'' strategy with respect to the ETF
portfolio.\9\ An ETF using a replication strategy will invest in each
stock of the underlying index in about the same proportion as that
stock is represented in the index itself. An ETF using a representative
sampling strategy will generally invest in a significant number but not
all of the component securities of the underlying index, and will hold
stocks that, in the aggregate, are intended to approximate the full
index in terms of key characteristics, such as price/earnings ratio,
earnings growth, and dividend yield.
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    \9\ In either case, an ETF, by its terms, may be considered
invested in the securities of the underlying index to the extent the
ETF invests in sponsored American Depositary Receipts (``ADRs''),
Global Depositary Receipts (``GDRs''), or European Depositary
Receipts (``EDRs'') that trade on exchanges with last-sale reporting
representing securities in the underlying index.
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    In addition, an ETF portfolio may be adjusted in accordance with
changes in the composition of the underlying index or to maintain
compliance with requirements applicable to a regulated investment
company under the Internal Revenue Code (``IRC'').
Generic Listing Standards for Exchange-Traded Funds
    The Commission has previously approved generic listing standards
for ETFs based on indexes that consist of stocks listed on U.S.
exchanges.\10\ In general, the proposed criteria for the underlying
component securities in the international and global indexes are
similar to those for the domestic indexes, but with modifications for
the issues and risks associated with non-U.S. securities.
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    \10\ See Securities Exchange Act Release No. 43717 (December 13,
2000), 65 FR 80976 (December 22, 2000) (SR-Phlx-00-54) (approving
Phlx Rule 803(i), which sets forth the rules related to the listing
and trading of Trust Shares); Securities Exchange Act Release No.
43912 (January 31, 2001), 66 FR 9401 (February 7, 2001) (SR-Phlx-00-
91) (approving Phlx Rule 803(l), which sets forth the rules
including generic listing standards for the listing and trading of
Index Fund Shares under Phlx Rule 803(l)).
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    In addition, the Commission has previously approved generic listing
standards of exchanges governing the listing and trading of ETFs based
on indexes composed of non-U.S. Component Stocks as well as indexes
based on both non-U.S. Component Stocks and U.S. Component Stocks.\11\
The Commission has also approved generic listing standards for index-
based derivative securities products based on indexes described in
exchange rules that have been previously approved by the Commission
under Section 19(b)(2) of the Act for the trading of ETFs or other
index-based securities, on the condition that all of the standards set
forth in those orders, including surveillance sharing agreements,
continue to be satisfied.\12\
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    \11\ See Securities Exchange Act Release No. 55621 (April 12,
2007), 72 FR 19571 (April 18, 2007) (SR-NYSEArca-2006-86);
Securities Exchange Act Release No. 55269 (February 9, 2007), 72 FR
7490 (February 15, 2007) (SR-NASDAQ-2006-50); Securities Exchange
Act Release No. 55113 (January 17, 2007), 72 FR 3179 (January 24,
2007) (SR-NYSE-2006-101).
    \12\ See, e.g. Securities Exchange Act Release No. 51563 (April
15, 2005) 70 FR 21257 (April 25, 2005) (SR-Amex-2005-001);
Securities Exchange Act Release No. 52204 (August 3, 2005), 70 FR
46559 (August 10, 2005) (SR-PCX-2005-63).
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    The Exchange believes that adopting generic listing standards and
applying Rule 19b-4(e) should fulfill the intended objective of that
rule by allowing those ETFs that satisfy the

proposed generic listing standards to commence trading, without the
need for a public comment period and Commission approval. The proposed
rules have the potential to reduce the time frame for bringing ETFs to
market, thereby reducing the burdens on issuers and other market
participants. The failure of a particular ETF to comply with the
proposed generic listing standards under Rule 19b-4(e) would not,
however, preclude the Exchange from submitting a separate filing
pursuant to Section 19(b)(2) requesting Commission approval to list and
trade a particular ETF.
Proposed Listing and Trading Requirements
    ETFs that are listed pursuant to the proposed generic listing
standards or that are traded pursuant to UTP would be traded, in all
other respects, under the Exchange's existing trading rules and
procedures that apply to ETFs and would be covered under Exchange's
surveillance program for ETFs.\13\
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    \13\ See Phlx Rule 803(i)(11)(i) and (l)(6)(I).
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    To list a Trust Share or IFS pursuant to the proposed generic
listing standards for international and global indexes, the index
underlying the Trust Share or IFS must satisfy all the conditions
contained in proposed Phlx Rules 803(i)(11)(b) or (l)(6)(B). As with
the existing generic standards for ETFs based on domestic indexes,
these generic listing standards are intended to ensure that stocks with
substantial market capitalization and trading volume account for a
substantial portion of the weight of an index or portfolio. While the
standards in this proposal are based on the standards contained in the
current generic listing standards for ETFs based on domestic indexes,
they have been adapted as appropriate to apply to international and
global indexes.
    As proposed, Phlx Rule 803(i)(1)(iii) and (iv) and Phlx Rule
803(l)(2)(C) and (D) would be revised to include definitions of ``U.S.
Component Stock'' and ``Non-U.S. Component Stock.'' These new
definitions would provide the basis for the standards for indexes with
either domestic or international stocks, or a combination of both. A
``Non-U.S. Component Stock'' would mean an equity security that is not
registered under Section 12(b) or 12(g) of the Act,\14\ and that is
issued by an entity that (1) is not organized, domiciled, or
incorporated in the United States; and (2) is an operating company
(including a real estate investment trust (REIT) or income trust, but
excluding an investment trust, unit trust, mutual fund, or derivative).
This definition is designed to create a category of component stocks
that are issued by companies that are not based in the United States,
are not subject to oversight through Commission registration, and would
include sponsored GDRs and EDRs. A ``U.S. Component Stock'' would mean
an equity security that is registered under Section 12(b) or 12(g) of
the Act or an ADR the underlying equity security of which is registered
under Section 12(b) or 12(g) of the Act. An ADR with an underlying
equity security that is registered pursuant to the Act is considered a
U.S. Component Stock because the issuer of that security is subject to
Commission jurisdiction and must comply with Commission rules.
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    \14\ 15 U.S.C. 78l(b) or (g).
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    The Exchange proposes that, to list a Trust Share or an IFS based
on an international or global index or portfolio pursuant to the
generic listing standards, such index or portfolio must meet the
following criteria:
     Component stocks that in the aggregate account for at
least 90% of the weight of the index or portfolio each must have a
minimum market value of at least $100 million (Phlx Rules
803(i)(11)(b)(i) and (l)(6)(B)(I));
     Component stocks representing at least 90% of the weight
of the index or portfolio each must have a minimum worldwide monthly
trading volume during each of the last six months of at least 250,000
shares (Phlx Rules 803(i)(11)(b)(ii) and (l)(6)(B)(II));
     The most heavily weighted component stock may not exceed
25% of the weight of the index or portfolio and the five most heavily
weighted component stocks may not exceed 60% of the weight of the index
or portfolio (Phlx Rules 803(i)(11)(b)(iii) and (l)(6)(B)(III));
     The index or portfolio shall include a minimum of 20
component stocks (Phlx Rules 803(i)(11)(b)(iv) and (l)(6)(B)(IV)); and
     Each U.S. Component Stock must be listed on a national
securities exchange and be an NMS stock as defined in Rule 600 of
Regulation NMS under the Act, and each Non-U.S. Component Stock must be
listed on an exchange that has last-sale reporting (Phlx Rules
803(i)(11)(b)(v) and (l)(6)(B)(V)).
    The Exchange believes that these proposed standards are reasonable
for international and global indexes, and, when applied in conjunction
with the other listing requirements, would result in the listing and
trading on the Exchange of ETFs that are sufficiently broad-based in
scope and not readily susceptible to manipulation. The Exchange also
believes that the proposed standards would result in ETFs that are
adequately diversified in weighting for any single security or small
group of securities to significantly reduce concerns that trading in an
ETF based on an international or global index could become a surrogate
for the trading of securities not registered in the United States.
    The Exchange further notes that, while these standards are similar
to those for indexes that include only U.S. Component Stocks, they
differ in certain important respects and are generally more
restrictive, reflecting greater concerns over portfolio diversification
with respect to ETFs investing in components that are not individually
registered with the Commission. First, in the proposed standards,
component stocks that in the aggregate account for at least 90% of the
weight of the index or portfolio each shall have a minimum market value
of at least $100 million, compared to a minimum market value of at
least $75 million for indexes with only U.S. Component Stocks. (Market
value is calculated by multiplying the total shares outstanding by the
price per share of the component stock.) Second, in the proposed
standards, the most heavily weighted component stock cannot exceed 25%
of the weight of the index or portfolio, in contrast to a 30% standard
for an index or portfolio comprised of only U.S. Component Stocks.
Third, in the proposed standards, the five most heavily weighted
component stocks shall not exceed 60% of the weight of the index or
portfolio, compared to a 65% standard for indexes comprised of only
U.S. Component Stocks. Fourth, the minimum number of stocks in the
proposed standards is 20, in contrast to a minimum of 13 in the
standards for an index or portfolio with only U.S. Component Stocks.
Finally, the proposed standards require that each Non-U.S. Component
Stock included in the index or portfolio be listed and traded on an
exchange that has last-sale reporting.
    The Exchange also proposes new Phlx Rules 803(i)(11)(e) and
(l)(6)(E) to require that the index value for an ETF listed pursuant to
the proposed standards for international and global indexes be widely
disseminated by one or more major market data vendors at least every 60
seconds during the time when the ETF shares trade on the Exchange. If
the index value does not change during some or all of the period when
trading is occurring on the Exchange, the last official calculated
index value must remain available throughout Exchange trading hours. In

contrast, the index value for an ETF listed pursuant to the existing
standards for domestic indexes must be disseminated at least every 15
seconds during the trading day. This modification reflects limitations,
in some instances, on the frequency of intra-day trading information
with respect to Non-U.S. Component Stocks and that, in many cases,
trading hours for overseas markets overlap only in part, or not at all,
with Exchange trading hours.
    In addition, proposed Phlx Rules 803(i)(11)(e) and (l)(6)(E) would
define the term ``Intraday Indicative Value'' (``IIV'') as the estimate
of the value of a share of each ETF that is updated at least every 15
seconds during the Core Session \15\ and during any Pre Market Session
\16\ for the ETF. Phlx also proposes to clarify in these rules that the
IIV would be updated at least every 15 seconds during the Core Session
on Phlx's XLE equities trading platform and during any Pre Market
Session on XLE for the ETF to reflect changes in the exchange rate
between the U.S. dollar and the currency in which any component stock
is denominated. If the IIV does not change during some or all of the
period when trading is occurring on XLE because the underlying
components of an index or portfolio are not trading, then the last
official calculated IIV must remain available throughout XLE's trading
hours.
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    \15\ The Core Session on XLE shall take place for each security
from 9:30 a.m. until 4 p.m., except for specified ETFs, for which it
shall last until 4:15 p.m. See Phlx Rule 101 Supplementary Material
.02(2).
    \16\ The Pre Market Session on XLE begins at 8 a.m. and
concludes at the commencement of the Core Session. See Phlx Rule 101
Supplementary Material .02(1).
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    As set forth in proposed Phlx Rules 803(i)(11)(l) and (l)(6)(H),
Phlx may designate an ETF for trading during XLE's Pre Market Session
and/or the Post Market Session \17\ as long as the index value and IIV
dissemination requirements of proposed Phlx Rules 803(i)(11)(e) and
(l)(6)(E) are met. If there is no overlap with the trading hours of the
primary market trading the underlying components of an ETF, Phlx may
designate the ETF for the Pre Market Session as long as the last
official calculated IIV remains available.\18\ Although the IIV does
not need to be calculated during XLE's current Post Market Session, the
last official calculated IIV must also remain available during such
post-market trading session.
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    \17\ The Post Market Session on XLE shall begin following the
conclusion of the Core Session and conclude at 6 p.m. See Phlx Rule
101 Supplementary Material .02(3).
    \18\ See Phlx Rule 803(i)(11)(l) and (l)(6)(H).
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    The Exchange is also proposing to add provisions, proposed Phlx
Rules 803(i)(11)(k) and (l)(6)(K), regarding the creation and
redemption process for ETFs and compliance with federal securities laws
for ETFs listed pursuant to the new generic listing standards. These
new provisions would require that the statutory prospectus or the
application for exemption from provisions of the 1940 Act for the ETF
state that the ETF must comply with the federal securities laws in
accepting securities for deposits and satisfying redemptions with
redemption securities, including that the securities accepted for
deposits and the securities used to satisfy redemption requests are
sold in transactions that would be exempt from registration under the
Securities Act of 1933.\19\
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    \19\ 15 U.S.C. 77a et seq.
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    The Commission has approved generic listing standards providing for
the listing, pursuant to Rule 19b-4(e), of derivative securities
products based on indexes described in rules previously approved by the
Commission under Section 19(b)(2) of the Act.\20\ The Exchange would
include in its proposed generic listing standards indexes described in
exchange rules that have been approved by the Commission in connection
with the listing of options, ETFs, index-linked exchangeable notes, or
index-linked securities. The Exchange believes that the application of
this standard to ETFs is appropriate because the underlying index would
have been subject to detailed and specific Commission review in the
context of the approval of listing of those other derivatives. This new
generic standard would be limited to stock indexes and would require
that each component stock be either: (1) A U.S. Component Stock that is
listed on a national securities exchange and is an NMS Stock as defined
in Rule 600 of Regulation NMS; or (2) a Non-U.S. Component Stock that
is listed and traded on an exchange that has last-sale reporting.
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    \20\ See supra note 12.
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    The Exchange also proposes to include additional continued listing
standards relating to ETFs. The Exchange proposes to adopt Phlx Rules
803(i)(5)(D) and (l)(5)(D) to formalize in the rules existing best
practices for providing equal access to material information about the
value of ETFs. Prior to approving an ETF for listing, the Exchange
would obtain a representation from the ETF issuer that the NAV per
share would be calculated daily and made available to all market
participants at the same time. The Exchange would commence delisting
proceedings for an ETF if the value of the index or portfolio of
securities on which the ETF is based is no longer calculated or
disseminated.
    Phlx's proposed amendments to Phlx Rule 136 would expand the
application of the trading halt provisions of Rule 136(c) and (d) from
index-linked securities to a broader range of derivative securities
products listed or traded on Phlx on a UTP basis. Current Phlx Rule
136, among other things, sets out the trading halt rules for a
Derivative Securities Product \21\ in the event that there is a
temporary interruption in the calculation and dissemination of the
index value or the IIV. Phlx Rule 136(c) sets forth the trading halt
requirement when Phlx is the primary listing market while Phlx Rule
136(d) sets forth the trading halt requirement when Phlx is trading an
ETF pursuant to UTP. The proposed amendments to Phlx Rule 136(e) would
expand the definition of a Derivative Securities Product to include
Trust Shares, IFSs, and other derivative securities, thus applying Phlx
trading halt rules to such securities if there is a temporary
interruption in the calculation and dissemination of the index value or
the IIV. Phlx is also proposing to clarify and expand the definition of
``Required Value'' to include the Indicative Optimized Portfolio Value,
which is used in connection with certain derivative securities
products, and other comparable values.\22\
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    \21\ Current Phlx Rule 136 defines a ``Derivative Securities
Product'' as ``a series of Index-Linked Securities.''
    \22\ Phone conversation between John Dayton, Director and
Counsel, Phlx, with Natasha Cowen, Special Counsel, Division,
Commission, on July 10, 2007 (clarifying the implications of
proposed changes to Rule 136).
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    The Exchange proposes to amend Phlx Rule 803 to stipulate that, as
provided by Commission Rule 12f-5,\23\ the Exchange may extend UTP to
any security, such as an ETF, for which the Exchange has in effect
rules providing for transactions in such class or type of security.
Provisions of Phlx Rule 803 that govern trading hours and surveillance
procedures, and that relate to information circulars and prospectus
delivery, also would apply to securities traded on a UTP basis (as do
applicable proposed trading halt provision of Phlx Rule 136). The
Exchange would not, however, apply quantitative listing standards to
securities traded on a UTP basis. Accordingly, introductory

language in Phlx Rules 803(i)(11) and (l)(6) that could be read to
require unlisted securities to meet Phlx's quantitative listing
standards for Trust Shares or IFSs in order to trade on a UTP basis is
being deleted.
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    \23\ 17 CFR 240.12f-5.
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    The Exchange is proposing other minor and clarifying changes to
Phlx Rules 803(i) and (l). Phlx proposed to amend Rules
803(i)(11)(d)(ii)-(iii) and (l)(6)(D)(II)-(III) to make sure that an
entity that advises an index provider or calculator and related
entities has in place procedures designed to prevent the use and
dissemination of material non-public information regarding the index
underlying the ETF. Phlx Rules 803(i)(11)(g) and (l)(6)(G) would be
amended to clarify that the trading increments for ETFs are set in Phlx
Rule 125. Phlx Rule 803(l)(6)(H) would be amended and Phlx Rule
803(i)(11)(l) would be added to, among other things, clarify that the
trading hours for ETFs are set in Phlx Rule 101. Phlx Rule
803(l)(6)(A)(III), which sets forth one of the listing requirements for
a series of IFSs that are based on U.S. Component Stocks, would be
amended to change the maximum weighting requirement for the most
heavily weighted component stock of the underlying index from 25% to
30%.\24\ Phlx Rule 803(l)(3) would be amended to harmonize its
provisions with those in Phlx Rule 803(l)(7).
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    \24\ See Securities Exchange Act Release Nos. 44532 (July 10,
2001), 66 FR 37078 (July 16, 2001) (SR-Amex-2001-25).
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    The Exchange represents that its surveillance procedures are
adequate to properly monitor the trading of Trust Shares and IFSs that
would be listed pursuant to the proposed listing standards or traded on
a UTP basis. Specifically, Phlx will rely on its existing surveillance
procedures governing equities, options, and ETFs. The Exchange states
that it will closely monitor activity in ETFs to identify and deter any
potential improper trading activity in ETFs. In addition, the Exchange
has a general policy prohibiting the dissemination of material, non-
public information by its employees.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6 of the Act,\25\ in general, and with
Section 6(b)(5) of the Act,\26\ in particular, in that it is designed
to prevent fraudulent and manipulative acts and practices, to promote
just and equitable principles of trade, to remove impediments to 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\ 15 U.S.C. 78f.
    \26\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

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

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

    Written comments were neither solicited nor received.

III. 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-2007-20 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-Phlx-2007-20. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml
). Copies of the submission, all subsequent amendments, all

written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for inspection and
copying in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at the principal office of Phlx. 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-2007-20 and should be
submitted on or before August 7, 2007.

IV. Commission's Findings and Order Granting Accelerated Approval of
the Proposed Rule Change

    After careful review, the Commission finds that the proposed rule
change, as amended, is consistent with the requirements of the Act and
the rules and regulations thereunder applicable to a national
securities exchange.\27\ In particular, the Commission finds that the
proposal is consistent with Section 6(b)(5) of the Act \28\ in that it
is designed to prevent fraudulent and manipulative acts and practices,
to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in facilitating
transactions in securities, to remove impediments to and perfect the
mechanism of a free and open market and a national market system, and,
in general, to protect investors and the public interest.
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    \27\ In approving this rule change, the Commission notes that it
has considered the proposed rule's impact on efficiency,
competition, and capital formation. See 15 U.S.C. 78c(f).
    \28\ 15 U.S.C. 78f(b)(5).
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    Currently, the Exchange must file a proposed rule change with the
Commission pursuant to Section 19(b)(1) of the Act \29\ and Rule 19b-4
thereunder \30\ to list and trade any ETF based on an index comprised
of foreign securities. The Exchange also must file a proposed rule
change to list and trade ETFs based on indexes or portfolios described
in rule changes that have previously been approved by the Commission as
underlying benchmarks for derivative securities. However, Rule 19b-4(e)
provides that the listing and trading of a new derivative securities
product by an SRO will not be deemed a proposed rule change pursuant to
Rule 19b-4(c)(1) if the Commission has approved, pursuant to Section
19(b) of the Act, the SRO's trading rules, procedures, and listing
standards for the product class that would include the new derivative
securities product, and the SRO has a surveillance program for the
product class. Phlx's proposed rules

for the listing and trading of ETFs pursuant to Rule 19b-4(e) based on
(1) certain indexes with components that include foreign securities or
(2) indexes or portfolios described in exchange rules that have been
previously approved by the Commission as underlying benchmarks for
derivative securities, fulfill these requirements. Use of Rule 19b-4(e)
by the Exchange to list and trade such ETFs should promote competition,
reduce burdens on issuers and other market participants, and make such
ETFs available to investors more quickly.\31\
---------------------------------------------------------------------------

    \29\ 15 U.S.C. 78s(b)(1).
    \30\ 17 CFR 240.19b-4.
    \31\ The Commission notes, however, that the failure of a
particular ETF to meet these generic listing standards would not
preclude the Exchange from submitting a separate proposed rule
change to list and trade the ETF.
---------------------------------------------------------------------------

    The Commission previously has approved generic listing standards
for other exchanges that are substantially similar to those proposed
here by the Exchange.\32\ This proposal does not appear to raise any
novel regulatory issues. Therefore, the Commission finds that Phlx's
proposal is consistent with the Act on the same basis that it approved
the other exchange's generic listing standards for ETFs based on
international or global indexes or on indexes or portfolios described
in exchange rules that have been previously approved by the Commission
as underlying benchmarks for derivative securities.
---------------------------------------------------------------------------

    \32\ See, e.g., Securities Exchange Act Release No. 55269
(February 9, 2007), 72 FR 19571 (February 15, 2007) (SR-NASDAQ-2006-
50); Securities Exchange Act Release No. 55621 (April 12, 2007), 72
FR 19571 (April 18, 2007) (SR-NYSEArca-2006-86); Securities Exchange
Act Release No. 55113 (January 17, 2007), 72 FR 3179 (January 24,
2007) (SR-NYSE-2006-101); Securities Exchange Act Release No. 54739
(November 9, 2006), 71 FR 66993 (November 17, 2007) (SR-Amex-2006-
78).
---------------------------------------------------------------------------

    Proposed Phlx Rules 803(i)(11)(b) and (l)(6)(B) establish standards
for the composition of indexes and portfolios underlying ETFs. These
requirements are designed, among other things, to require that
components of an index or portfolio underlying an ETF are adequately
capitalized and sufficiently liquid, and that no one security dominates
the index. The Commission believes that, taken together, these
standards are reasonably designed to ensure that securities with
substantial market capitalization and trading volume account for a
substantial portion of any underlying index or portfolio, and that when
applied in conjunction with the other applicable listing requirements
will permit the listing and trading of only ETFs that are sufficiently
broad-based in scope to minimize potential manipulation. The Commission
further believes that the proposed listing standards are reasonably
designed to preclude Phlx from listing and trading ETFs that might be
used as surrogate for trading in unregistered securities. The
requirement that each component security underlying an ETF be an NMS
Stock (in the case of a U.S. Component Stock) or listed on an exchange
and subject to last-sale reporting (in the case of a Non-U.S. Component
Stock) also should contribute to the transparency of the market for
these ETFs.
    The proposed generic listing standards will permit the Exchange to
list and trade an ETF if the Commission has previously approved an SRO
rule change that contemplates listing and trading a derivative product
based on the same underlying index. Phlx would be able to rely on that
earlier approval order, provided that: (1) The securities comprising
the underlying index consist of U.S. Component Stocks or Non-U.S.
Component Stocks; and (2) Phlx complies with the commitments undertaken
by the other SRO set forth in the prior order, including any
surveillance-sharing arrangements with a foreign market.
    The Commission believes that Phlx's proposal is consistent with
Section 11A(a)(1)(C)(iii) of the Act,\33\ which sets forth Congress'
finding that it is in the public interest and appropriate for the
protection of investors and the maintenance of fair and orderly markets
to assure the availability to brokers, dealers, and investors of
information with respect to quotations for and transactions in
securities. Phlx's proposal requires the value of the index or
portfolio underlying an ETF based on a global or international index to
be disseminated at least once every 60 seconds during the time when the
ETF shares trade on the Exchange.\34\ Phlx has represented that, if an
underlying index or portfolio value is no longer calculated or
available, it would commence delisting proceedings for the associated
ETF.
---------------------------------------------------------------------------

    \33\ 15 U.S.C. 78k-1(a)(1)(C)(iii).
    \34\ See Phlx Rules 803(i)(11)(e) and (l)(6)(E). In the
underlying components of an index or portfolio are not trading and
the index or portfolio value is therefore static, the last official
calculated index or portfolio value must continue to be disseminated
during the time that the ETF trades on the Exchange.
---------------------------------------------------------------------------

    In addition, an IIV, which represents an estimate of the value of a
share of each ETF, must be updated and disseminated at least once every
15 seconds during Phlx XLE's Core Session. If the underlying components
are trading during the same hours as the XLE's Pre Market Session, Phlx
may not trade the ETF unless an updated IIV is being calculated and
disseminated. The IIV must reflect changes in the exchange rate between
the U.S. dollar and the currency in which any index or portfolio
component stock is denominated. When there is no overlap with the
trading hours of the primary market or markets trading the underlying
components of an ETF, Phlx may trade such ETF during the Pre Market
Session, as long as the last official calculated IIV remains
available.\35\ In those instances, the IIV will not reflect changes
associated with the exchange rate. Although the IIV is not calculated
during XLE's current Post Market Session, the last official calculated
IIV must also remain available during such post-market trading session.
---------------------------------------------------------------------------

    \35\ See Phlx Rule 803(i)(11)(l) and (l)(6)(H).
---------------------------------------------------------------------------

    The Commission believes the proposal is reasonably designed to
preclude trading of ETFs when transparency is impaired. Existing Phlx
Rule 136 sets out the trading halt rules for Derivative Securities
Products in the event that there is a temporary interruption in the
calculation and dissemination of the index value or the IIV. In the
proposed rule change, Phlx would amend its definition of a ``Derivative
Securities Product'' and thereby extend Rule 136 to a broader range of
derivative securities products that currently trade on the Exchange,
including Trust Shares and IFSs. This proposed rule change is designed
to ensure that similar derivative securities products are treated
consistently and that the same trading halt rules apply when there is a
temporary disruption in the dissemination of the IIV and index value.
    In addition, in the proposed rule change, Phlx would clarify that
the trading halt rules apply when values that are comparable to the
IIV, such as the Indicative Optimized Portfolio Value, are not
disseminated as required. The Commission believes that it is reasonable
and consistent with the Act for Phlx to apply consistent trading halt
rules to similar derivative securities products.
    The Commission believes that the proposed rules are reasonably
designed to promote fair disclosure of information that may be
necessary to price an ETF appropriately. These generic listing
standards provide that the issuer of an ETF must represent that it will
calculate the NAV and make it available daily to all market
participants at the same time.\36\ Phlx proposed to amend Rules
803(i)(11)(d)(ii)-(iii) and

(l)(6)(D)(II)-(III) to make sure that an entity that advises an index
provider or calculator and related entities has in place procedures
designed to prevent the use and dissemination of material non-public
information regarding the index underlying the ETF.
---------------------------------------------------------------------------

    \36\ See proposed Phlx Rules 803(i)(5)(D) and (l)(5)(D).
---------------------------------------------------------------------------

    In approving this proposal, the Commission relied on Phlx's
representation that its surveillance procedures are adequate to
properly monitor the trading of the Trust Shares and IFSs listed
pursuant to the proposed new listing standards or traded on a UTP
basis. This approval is conditioned on the continuing accuracy of that
representation.
Acceleration
    The Commission finds good cause for approving the proposed rule
change, as amended, prior to the 30th day after the date of publication
of the notice of filing thereof in the Federal Register. The Commission
notes that Phlx's proposal is substantially similar to other proposals
that have been approved by the Commission.\37\ The Commission does not
believe that Phlx's proposal raises any novel regulatory issues and,
therefore, that good cause exists for approving the filing before the
conclusion of a notice-and-comment period. Accelerated approval of the
proposal will expedite the listing and trading of additional ETFs by
Phlx, subject to consistent and reasonable standards. Therefore, the
Commission finds good cause, consistent with Section 19(b)(2) of the
Act,\38\ to approve the proposed rule change, as amended, on an
accelerated basis.
---------------------------------------------------------------------------

    \37\ See supra note 32.
    \38\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------

V. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\39\ that the proposed rule change (SR-Phlx-2007-20), as amended,
be, and it hereby is, approved on an accelerated basis.
---------------------------------------------------------------------------

    \39\ Id.
    \40\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\40\
J. Lynn Taylor,
Assistant Secretary.
 [FR Doc. E7-13807 Filed 7-16-07; 8:45 am]

BILLING CODE 8010-01-P


                    UNITED STATES OF AMERICA

            DEPARTMENT OF TRANSPORTATION

                    OFFICE OF THE SECRETARY

                             WASHINGTON, DC

Issued by the Department of Transportation on March 31, 2005

NOTICE OF ACTION TAKEN -- DOCKETS OST-2004-19666

________________________________________________________________________

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

ApplicationApplications of   Evergreen International Airlines, Inc.
filed  3/29/2005 to:

XX   Amend exemption under 49 U.S.C. 40109 to provide the following
service:

Scheduled foreign air transportation of property and mail between a
point or points in the United States and Nagoya, Japan, and beyond to
Hong Kong.

Applicant rep:  Robert P. Silverberg<PHONE_NUMBER>  DOT Analyst:
Gerald Caolo<PHONE_NUMBER>

D I S P O SI T I O N

XX  Granted  (subject to conditions, see below)

The above action amending the exemption was effective when taken: March
31, 2005,  through,  March 31, 2007

Action taken by:   Paul L. Gretch, Director

		    Office of International Aviation

XX   The authority granted here is consistent with the 1998 Memorandum
of Understanding between the United States and Japan.

Except to the extent exempted or waived, this authority is subject to
the terms, conditions, and limitations indicated:  	XX  Holder’s
certificates of public convenience and necessity

		XX  Standard Exemption Conditions (attached)

________________________________________________________________________
_____________

Remarks:  We acted on this application without awaiting expiration of
the 15-day answer period with the consent of all parties served.

___________________________________________

________________________________________________________________________
______________

On the basis of data officially noticeable under Rule 24(g) of the
Department’s regulations, we found the applicant qualified to provide
the services authorized.

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

Persons entitled to petition the Department for review of the action set
forth in this Notice under the Department’s regulations, 14 CFR §
385.30, may file their petitions within seven (7) days after the date of
issuance of this Notice.  This action was effective when taken, and the
filing of a petition for review will not alter such effectiveness.

An electronic version of this order is available on the World Wide Web
at:

  HYPERLINK "http://dms.dot.gov//reports/reports_ aviation.asp"
http://dms.dot.gov//reports/reports_ aviation.asp

U.S. Carrier Exemption Conditions

In the conduct of the operations authorized, the U.S. carrier
applicant(s) shall:

(1)  Hold at all times effective operating authority from the government
of each country served;

(2)  Comply with applicable requirements concerning oversales contained
in 14 CFR 250 (for scheduled operations, if authorized);

(3)  Comply with the requirements for reporting data contained in 14 CFR
241;

(4)  Comply with requirements for minimum insurance coverage, and for
certifying that coverage to the Department, contained in 14 CFR 205;

(5)  Except as specifically exempted or otherwise provided for in a
Department Order, comply with the requirements of 14 CFR 203, concerning
waiver of Warsaw Convention liability limits and defenses;

(6)  Comply with all applicable requirements of the Federal Aviation
Administration and with all applicable U.S. Government requirements
concerning security, including, but not limited to, 49 CFR Part 1544.
To assure compliance with all applicable U.S. Government requirements
concerning security, the holder shall, before commencing any new service
(including charter flights) to or from a foreign airport, contact its
International Principal Security Inspector (IPSI) to advise the IPSI of
its plans and to find out whether the Transportation Security
Administration has determined that security is adequate to allow such
airport(s) to be served; and

(7)  Comply with such other reasonable terms, conditions, and
limitations required by the public interest as may be prescribed by the
Department of Transportation, with all applicable orders and regulations
of other U.S. agencies and courts, and with all applicable laws of the
United States.

The authority granted shall be effective only during the period when the
holder is in compliance with the conditions imposed above.

05/2004

 We previously granted Evergreen exemption authority to operate beyond
Nagoya to Seoul, on a blind sector basis.  The carrier now wants to
operate beyond Nagoya to Hong Kong, on a blind sector basis.  Evergreen
proposes initial service between Columbus, Ohio, and Nagoya and beyond
to Hong Kong on a blind sector basis, beginning June 1, 2005.  We also
previously granted Evergreen five-weekly U.S.-Japan all-cargo
frequencies and integration and commingling authority.  See Notice of
Action Taken dated December 2, 2004, Docket OST-2004-19666.

 PAGE   3

 PAGE   3


Federal Advisory Council on Occupational Safety and Health

(FACOSH)

December 1, 2011 Meeting

Tentative Agenda

Welcome by FACOSH Chair Dr. David Michaels

Member Introductions

Administrative Items

Old Business

FACOSH Meeting Materials for June 7, 2011

PELs Subcommittee Report and Recommendations

Status of Training Subcommittee Recommendations

Protecting Our Workers and Ensuring Reemployment (POWER) Program Update

Program Updates from the Office of Federal Agency Programs

New Business

Issue Identification and Strategic Planning

Next Meeting

Closing Remarks


[Federal Register: January 22, 2008 (Volume 73, Number 14)]
[Notices]
[Page 3785-3786]
[DOCID:fr22ja08-107]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57144; File No. SR-ISE-2008-03]

Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change Extending the Pilot Program Increasing Position and Exercise
Limits for Options on the iShares[supreg] Russell 2000[supreg] Index
Fund

 January 14, 2008.
    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 January 8, 2008, the International Securities Exchange, LLC
(``Exchange'' or ``ISE'') filed with the Securities and Exchange
Commission (``Commission'') the proposed rule change as described in
Items I and II below, which Items have been substantially prepared by
the Exchange. The Exchange has designated this proposal as non-
controversial under Section 19(b)(3)(A)(iii) of the Act \3\ and Rule
19b-4(f)(6) thereunder,\4\ which renders the proposed rule change
effective upon filing with the Commission. The Commission is publishing
this notice to solicit comments on the proposed rule change from
interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

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

    The Exchange is proposing to extend an existing pilot program that
increases the position and exercise limits for options on the
iShares[supreg] Russell 2000[supreg] Index Fund (``IWM'') traded on the
Exchange (``IWM Pilot Program''). The text of the proposed rule change
is available on the Exchange's Web site (http://www.ise.com), at the

Exchange's principal office, and at the Commission's Public Reference
Room.

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

    In its filing with the Commission, 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 IWM Pilot Program provides for increased position and exercise
limits for IWM options traded on the Exchange.\5\ Specifically, the IWM
Pilot Program increases the position and exercise limits for IWM
options from 250,000 contracts to 500,000 contracts.\6\
---------------------------------------------------------------------------

    \5\ The proposal that established the IWM Pilot Program was
designated by the Commission to be effective and operative upon
filing. See Securities Exchange Act Release No. 55175 (January 25,
2007), 72 FR 4753 (February 1, 2007) (SR-ISE-2007-07). The IWM Pilot
Program was extended by the Commission and is due to expire on
January 18, 2008. See Securities Exchange Act Release No. 56020
(July 6, 2007), 72 FR 38109 (July 12, 2007) (SR-ISE-2007-56).
    \6\ Pursuant to ISE Rule 414, the exercise limit established
under Rule 414 for IWM options shall be equivalent to the position
limit prescribed for IWM options in Supplementary Material .01 to
Rule 412. The increased exercise limits would only be in effect
during the pilot period, to run from January 22, 2007 through March
1, 2008.
---------------------------------------------------------------------------

    The purpose of the proposed rule change is to extend the IWM Pilot
Program until March 1, 2008. The Exchange is not proposing any other
changes to the IWM Pilot Program. The Exchange believes that extending
the IWM Pilot Program is warranted due to the positive feedback
received from market participants and for the reasons cited in the
original rule filing that proposed the adoption of the IWM Pilot
Program. Further, the Exchange represents that it has not encountered
any problems or difficulties relating to the IWM Pilot Program since
its inception.
    The Exchange believes that maintaining the increased position and
exercise limits for IWM options will lead to a more liquid and more
competitive market environment for IWM options that will benefit
customers interested in trading this product. As a result, the Exchange
requests that the Commission extend the pilot through March 1, 2008.

2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with and furthers the objectives of Section 6(b)(5) of the Act \7\ in
that it is designed to promote just and equitable principles of trade,
to remove impediments to and perfect the mechanisms of a free and open
market and a national market system and, in general, to protect
investors and the public interest.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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 that is not necessary or appropriate
in furtherance of the purposes of the Act.

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

    The Exchange has not solicited, and does not intend to solicit,
comments on this proposed rule change. The Exchange has not received
any unsolicited written comments from members or other interested
parties.

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

    The Exchange has designated the proposed rule change as one that:
(1) Does not significantly affect the protection of investors or the
public interest; (2) does not impose any significant burden on
competition; and (3) does not become operative for 30 days from the
date of filing, or such shorter time as the Commission may designate if
consistent with the protection of investors and the public interest.
Therefore, the foregoing rule change has become effective pursuant to
Section 19(b)(3)(A) of the Act \8\ and subparagraph (f)(6) of Rule 19b-
4 thereunder.\9\ The Exchange has asked the Commission to waive the
operative delay to permit the Pilot Program extension to become
effective prior to the 30th day after filing.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to provide the Commission
with written notice of its intent to file the proposed rule change,
along with a brief description and text of the proposed rule change,
at least five business days prior to the date of filing of the
proposed rule change, or such shorter time as designated by the
Commission. The Exchange has fulfilled this requirement.
---------------------------------------------------------------------------

    The Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest
because it will allow the benefits of the IWM Pilot Program to continue
without interruption.\10\ Therefore, the Commission designates the
proposal operative upon filing.
---------------------------------------------------------------------------

    \10\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule
change, the Commission may summarily abrogate the rule change if it
appears to the Commission that such action is necessary or appropriate
in the public interest, for the protection of investors, or otherwise
in furtherance of the purposes of the Act.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml.
); or     Send an e-mail to<EMAIL_ADDRESS>Please include

File No. SR-ISE-2008-03 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-ISE-2008-03. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml
). Copies of the submission, all subsequent amendments, all

written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for inspection and
copying in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-ISE-2008-03 and should be
submitted on or before February 12, 2008.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------

    \11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E8-967 Filed 1-18-08; 8:45 am]

BILLING CODE 8011-01-P


[Federal Register Volume 82, Number 240 (Friday, December 15, 2017)]
[Notices]
[Pages 59603-59604]
[FR Doc No: 2017-27094]

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

ENVIRONMENTAL PROTECTION AGENCY

[FRL-9972-15-OAR]

Allocations of Cross-State Air Pollution Rule Allowances From New
Unit Set-Asides for 2017 Control Periods

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice of data availability (NODA).

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

SUMMARY: The Environmental Protection Agency (EPA) is providing notice
of the availability of preliminary lists of units eligible for second-
round allocations of emission allowances for the 2017 control periods
from the new unit set-asides (NUSAs) established under the Cross-State
Air Pollution Rule (CSAPR). EPA has posted spreadsheets containing the
lists on EPA's website. EPA will consider timely objections to the
lists before determining the amounts of the second-round allocations.

DATES: Objections to the information referenced in this notice must be
received on or before January 16, 2018.

ADDRESSES: Submit your objections via email to [email protected].
Include ``2017 NUSA allocations'' in the email subject line and include
your name, title, affiliation, address, phone number, and email address
in the body of the email.

FOR FURTHER INFORMATION CONTACT: Questions concerning this action
should be addressed to Robert Miller at<PHONE_NUMBER> or
[email protected] or Kenon Smith at<PHONE_NUMBER> or
[email protected].

SUPPLEMENTARY INFORMATION: Under each CSAPR trading program where EPA
is responsible for determining emission allowance allocations, a
portion of each state's emissions budget for the program for each
control period is reserved in a NUSA (and in an additional Indian
country NUSA in the case of states with Indian country within their
borders) for allocation to certain units that would not otherwise
receive allowance allocations. The procedures for identifying the
eligible units for each control period and for allocating allowances
from the NUSAs and Indian country NUSAs to those units are set forth in
the CSAPR regulations at 40 CFR 97.411(b) and 97.412 (NOX
Annual Trading Program), 97.511(b) and 97.512 (NOX Ozone
Season Group 1 Trading Program), 97.611(b) and 97.612 (SO2
Group 1 Trading Program), 97.711(b) and 97.712 (SO2 Group 2
Trading Program), and 97.811(b) and 97.812 (NOX Ozone Season
Group 2 Trading Program). Each NUSA allowance allocation process
involves up to two rounds of allocations to eligible units, termed
``new'' units, followed by the allocation to ``existing'' units of any
allowances not allocated to new units.
    This notice concerns EPA's preliminary identification of units
eligible to receive allowances in the second round of NUSA allocations
for the 2017 control periods. The units eligible for second-round
allocations for a given control period are CSAPR-affected units that
commenced commercial operation between January 1 of the year before
that control period and November 30 of the year of that control period.
In the case of the 2017 control periods, an eligible unit therefore
must have commenced commercial operation between January 1, 2016 and
November 30, 2017 (inclusive). Generally, where a unit is eligible to
receive a second-round NUSA allocation under a given CSAPR trading
program for a given control period, the unit's maximum potential
second-round allocation equals the positive difference (if any) between
the unit's emissions during the control period as reported under 40 CFR
part 75 and any first-round NUSA allocation the unit received.\1\ If
the total of such maximum potential allocations to all eligible units
would exceed the total allowances remaining in the NUSA, the
allocations are reduced on a pro-rata basis.
---------------------------------------------------------------------------

    \1\ EPA notes that a unit's emissions occurring before its
monitor certification deadline are not considered to have occurred
during a control period and consequently are not included in the
emission amounts used to determine NUSA allocations. See 40 CFR
97.406(c)(3), 97.506(c)(3), 97.606(c)(3), 97.706(c)(3), and
97.806(c)(3).
---------------------------------------------------------------------------

    The preliminary lists of eligible units are set forth in Excel
spreadsheets titled
``CSAPR_NUSA_2017_NOx_Annual_2nd_Round_Prelim_Data,''
``CSAPR_NUSA_2017_ NOx_Ozone_Season_2nd_Round_Prelim_Data,'' and
``CSAPR_NUSA_2017_SO _2nd_Round_Prelim_Data'' available on EPA's
website at https://www.epa.gov/csapr/csapr-compliance-year-2017-nusa-nodas. Each

spreadsheet contains a separate worksheet for each state covered by
that program showing each unit preliminarily identified as eligible for
a second-round NUSA allocation. Each state worksheet also contains a
summary showing (1) the quantity of allowances initially available in
that state's 2017 NUSA, (2) the sum of the 2017 NUSA allowance
allocations that were made in the first round to new units in that
state, if any, and (3) the quantity of allowances in the 2017 NUSA
available for second-round allocations to new units (or ultimately for
allocations to existing units), if any.
    Objections should be strictly limited to whether EPA has correctly
identified the units eligible for second-round 2017 NUSA allocations
according to the criteria established in the regulations and should be
emailed to the address identified in ADDRESSES. Objections must
include: (1) Precise identification of the specific data the commenter
believes are inaccurate, (2) new proposed data upon which the commenter
believes EPA should rely instead, and (3) the reasons why EPA should
rely on the commenter's proposed data and not the data referenced in
this notice.
    EPA notes that an allocation or lack of allocation of allowances to
a given unit does not constitute a determination that CSAPR does or
does not apply to the unit. EPA also notes that allocations are subject
to potential correction if a unit to which NUSA allowances have been
allocated for a given control period is not actually an affected unit
as of the start of that control period.\2\
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    \2\ See 40 CFR 97.411(c), 97.511(c), 97.611(c), 97.711(c), and
97.811(c).

(Authority: 40 CFR 97.411(b), 97.511(b), 97.611(b), 97.711(b), and
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97.811(b).)

    Dated: December 1, 2017.
Reid P. Harvey,
Director, Clean Air Markets Division, Office of Atmospheric Programs,
Office of Air and Radiation.
[FR Doc. 2017-27094 Filed 12-14-17; 8:45 am]
 BILLING CODE 6560-50-P