[Federal Register: October 1, 2008 (Volume 73, Number 191)]
[Notices]
[Page 57185-57188]
[DOCID:fr01oc08-139]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-58631; File No. SR-NYSE-2008-84]

Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by New York Stock Exchange LLC
Proposing To Suspend the Operation of Certain NYSE Rules To Respond to
the Impact to the Marketplace of the Events of September 15, 2008,
Including the Bankruptcy Filing by Lehman Brothers Holding Inc.

September 24, 2008.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that, on September 15, 2008, New York Stock Exchange LLC
(``NYSE'' or the ``Exchange'') filed with the Securities and Exchange
Commission (the ``Commission'') the proposed rule change as described
in Items I and II below, which Items have been prepared by the self-
regulatory organization. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 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

    New York Stock Exchange LLC (``NYSE'' or the ``Exchange'') is
proposing to suspend the operation of certain NYSE rules to respond to
the impact to the marketplace of the events of September 15, 2008,
including the bankruptcy filing by Lehman Brothers Holding Inc. (LEH)
and the proposed acquisition of Merrill Lynch by Bank of America.

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

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

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

1. Purpose
    On Monday, September 15, 2008, the markets experienced almost
unprecedented turmoil that impacted some of the most significant
players on Wall Street: Lehman Brothers Holding Inc. (LEH) (``Lehman'')
filed for bankruptcy protection in the United States District Court for
the Southern District of New York under Chapter 11 of the U.S.
bankruptcy code; Bank of America agreed to acquire Merrill Lynch in an
all-stock transaction; and American Insurance Group, Inc. (``AIG'')
announced a significant restructuring.
    In response to these events, the Exchange undertook a number of
steps to ensure continuity of the marketplace. First, the Exchange
invoked NYSE Rule 48, which authorizes the Exchange to suspend certain
rules relating to the opening of trading at the Exchange. Second,
because the pre-opening market in LEH suggested that the stock would
open below $1.05, at 9 a.m. on September 15, 2008, the Exchange
announced a Rule 123D(3) ``Sub-penny trading'' condition for LEH and
halted trading in LEH at the Exchange. Third, to ensure a fair and
orderly market in all securities listed at the Exchange, the Exchange
announced that, pursuant to NYSE Rule 103.11, NYSE-listed securities
for which Lehman Brothers Market Makers, a division of Lehman Brothers
Inc. (``Lehman Brothers''), had been the specialist, would be
temporarily reallocated to Spear, Leeds & Kellogg Specialists LLC
(``Spear Leeds''). Notwithstanding the reallocation, these stocks will
continue to trade using Lehman Brothers technology and staff until a
more permanent allocation can be effected.
    To ensure a fair and orderly market during this period of market
stress, the Exchange is seeking temporary relief from certain NYSE
rules that are implicated by the Lehman Brothers situation. In
particular, the Exchange is proposing to suspend the operation of NYSE
Rule 123D(3) on September 15, 2008 for derivative securities of LEH
that trade at the Exchange (``LEH Preferreds'') \4\ that would open at
a price of $1.05 or less. This proposed suspension relates only to the
opening of LEH Preferreds on September 15, 2008. Immediately following
the opening of such securities, the Exchange intends to halt trading of
LEH Preferreds pursuant to NYSE Rule 123D(3) and invoke a Sub-penny
trading condition.
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    \4\ See Lehman Bros Pfd C (LEH-PC); Lehman Bros 5.67 D (LEH-PD);
Lehman Bros Dep SH F (LEH-PF); Lehman Dep Pfd G (LEH-PG); Lehman Pfd
J (LEH-PJ); Lehman CP III 6.375 K (LEH-PK); Lehman Br Cap Tr IV
(LEH-PL); Lehman Bro Cap V 6.0 (LEH-PM); and Lehman Br Hld 6.24 N
(LEH-PN).
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    In addition, pending the installation of telephone lines at Lehman
Brothers' specialist posts that are connected to Spear Leeds, the
Exchange proposes to temporarily suspend NYSE Rule 36.30 so that Spear
Leeds may conduct permitted communications from those post locations
via non-Exchange portable telephones.
a. NYSE Rule 123D(3)
(1) Background
    NYSE Rule 123D(3) provides that if a security would open on the
Exchange at a price of $1.05 or less, trading on the Exchange shall be
immediately halted because of a ``Sub-penny trading'' condition. The
Exchange adopted Rule 123D(3) in part to be compliant with Regulation
NMS.
    Regulation NMS, adopted by the Securities and Exchange Commission
(``SEC'') in April 2005,\5\ provides that each trading center intending
to qualify for trade-through protection under Regulation NMS Rule
611\6\ is required to have a Regulation NMS-compliant trading system
fully operational by

March 5, 2007 (the ``Trading Phase Date'').\7\
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    \5\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 17 CFR Parts 200, 201, 230, 240, 242, 249 and 270.
    \6\ See 17 CFR 242.611.
    \7\ See Securities Exchange Act Release No. 55160 (January 24,
2007), 72 FR 4202 (January 30, 2007) (S7-10-04).
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    For stocks priced below $1.00 per share, Regulation NMS Rule 612
\8\ permits markets to accept bids, offers, orders and indications of
interest in increments smaller than $0.01, but not less than $0.0001,
and to quote and trade such stocks in sub-pennies. Markets may choose
not to accept such bids, offers, orders or indications of interest and
the NYSE has done so, maintaining a minimum trading and quoting
variation of $0.01 for all securities trading below $100,000. See NYSE
Rule 62.
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    \8\ See 17 CFR 242.612. Rule 612 originally was to become
effective on August 29, 2005, but the date was later extended to
January 29, 2006. See Securities Exchange Act Release No. 52196
(Aug. 2, 2005), 70 FR 45529 (Aug. 8, 2005).
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    The SEC's interpretation of Rule 612 requires a market that routes
an order to another market in compliance with Rule 611 and receives a
sub-penny execution, to accept the sub-penny execution, report that
execution to the customer, and compare, clear and settle that trade.
Failure to do so constitutes a violation of Rule 611's Order Protection
Rule. However, pursuant to Rule 611(b)(3) of Regulation NMS,\9\
transactions that constitute a single-priced opening, reopening, or
closing transaction by a trading center are excepted from the Order
Protection Rule. Accordingly, a sub-penny execution at the opening that
trades through another market center does not constitute a violation of
Regulation NMS Rule 611's Order Protection Rule.
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    \9\ See 17 CFR 242.611(b)(3).
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    The Exchange adopted Rule 123D(3) to provide for a ``Sub-penny
trading'' condition because the Exchange's trading systems did not then
accommodate sub-penny executions on orders routed to better-priced
protected quotations, nor could it recognize a quote disseminated by
another market center if such quote had a sub-penny component and,
therefore, could have inadvertently traded through better protected
quotations. The rule allows the Exchange to halt trading in a security
whose price was about to fall below $1.00, without delisting the
security, so that the security could continue to trade on other markets
that deal in bids, offers, orders or indications of interest in sub-
penny prices, until the price of the security had recovered
sufficiently to permit the Exchange to resume trading in minimum
increments of no less than one penny or the issuer is delisted for
failing to correct the price condition within the time provided under
NYSE rules.\10\
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    \10\ See Securities and Exchange Commission Release No. 34-
55398; File No. SR-NYSE-2007-25 (Mar. 5, 2007).
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    A subsequent amendment established that any orders received by the
NYSE in a security subject to a ``Sub-penny trading'' condition would
be routed to NYSE Arca, Inc. (``NYSE Arca'') and handled in accordance
with the rules governing that market.\11\ When a ``Sub-penny trading''
condition is invoked, all open limit orders in such security at the
Exchange will be cancelled and will not be routed to NYSE Arca.
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    \11\ See Securities and Exchange Commission Release No. 34-
55537; File No. SR-NYSE-2007-30 (Mar. 27, 2007).
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(2) Proposed Suspension of Rule 123D(3) for LEH Preferreds
    Pre-opening quoting and trading in away markets relating to LEH
Preferreds indicated that such securities would open at prices below
$1.05.\12\ Prior to the opening, the Exchange received pre-opening
orders in LEH Preferreds. If the Exchange were to invoke a ``Sub-penny
trading'' condition for those securities prior to the opening, such
orders would be cancelled and would not be routed to NYSE Arca.
Therefore, such orders would not be executed, potentially harming the
investing public that routed such orders to the Exchange before the
Exchange's announcement of a sub-penny trading halt.
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    \12\ Prior to the open on September 15, 2008, the Exchange
announced that it was invoking a Rule 123D(3) ``Sub-penny trading''
condition for LEH and that any trading in that security would take
place at NYSE Arca. Trading in LEH had begun at NYSE Arca at 4 a.m.
EST on September 15, 2008.
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    The Exchange notes that while such an opening transaction would be
a violation of NYSE Rule 123D(3), an execution at a sub-penny price at
the opening at the Exchange would not be a violation of Regulation NMS.
Accordingly, because a sub-penny execution at the opening would not
constitute a violation of the Regulation NMS Rule 611 Order Protection
Rule, the Exchange believes that the harm to the investing public in
not having their orders in LEH Preferreds executed at the opening
outweighs any harm that may result from a violation of NYSE Rule
123D(3). The Exchange therefore proposes a one-day suspension of the
operation of NYSE Rule 123D(3) that would be in effect only for the
opening transactions of LEH Preferreds on September 15, 2008.
    Once trading in LEH Preferreds open at the Exchange, should such
opening prices be at or below $1.05, the Exchange would, in compliance
with NYSE Rule 123D(3), immediately halt trading and invoke a ``Sub-
penny trading'' condition for such securities.
b. Proposed Suspension of NYSE Rule 36.30
    NYSE Rule 36 bars members or member organizations from establishing
or maintaining any telephonic or electronic location between the Floor
of the Exchange and any other location without the approval of the
Exchange. NYSE Rule 36.30 permits a specialist unit to maintain
telephone lines at its stock trading post locations that connect to
off-Floor offices of the specialist unit or the unit's clearing firm.
Specialists, however, are not permitted to use cell phones from the
Floor of the Exchange.
    As permitted by NYSE Rule 36.30, the Lehman Brothers specialist
posts (posts 10 and 11), which are located in the Main Room of the
Floor of the Exchange, have telephone lines connected to its off-Floor
offices. Those post locations do not have telephone lines connected to
any other entities. Because the temporary reallocation to Spear Leeds
of the securities registered with Lehman as specialist was done shortly
before the opening of trading at the Exchange, the Exchange was unable
to install telephone lines at posts 10 and 11 that connect to Spear
Leeds in time for the opening of trading or otherwise reorganize so
that the Lehman Brothers and Spear Leeds posts are located in
contiguous space.
    Without telephone lines from the posts 10 and 11 to Spear Leeds'
off-Floor location, Spear Leeds is limited in its ability to engage in
permitted telephonic communications from posts 10 and 11. Accordingly,
the Exchange proposes to temporarily suspend NYSE Rule 36.30 as it
applies only to Spear Leeds at posts 10 and 11. Such suspension would
end the earlier of (i) the installation of telephone wires at posts 10
and 11 that connect to Spear Leeds' off-Floor locations; or (ii) the
end of the temporary reallocation of the securities assigned to Lehman
Brothers to Spear Leeds.
    In connection with this temporary relief, the Exchange will advise
Spear Leeds' management and risk personnel that use of the mobile
telephones is limited to permitted communications, and may not be used
from the Lehman Brothers' posts for any other purposes.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with
and furthers the objectives of Section 6(b)(5) of the Act,\13\ in that
it is designed to prevent fraudulent and manipulative

practices, 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.
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    \13\ 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 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

    No written comments were solicited or received with respect to the
proposed rule change.

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

    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 \14\ and subparagraph (f)(6) of Rule
19b-4 thereunder.\15\
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    \14\ 15 U.S.C. 78s(b)(3)(A).
    \15\ 17 CFR 240.19b-4(f)(6).
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    A proposed rule change filed under 19b-4(f)(6) normally does not
become operative until 30 days after the date of filing.\16\ However,
Rule 19b-4(f)(6)(iii) \17\ permits the Commission to designate a
shorter time if such action is consistent with the protection of
investors and the public interest. In view of the immediate nature of
the relief requested, the Exchange seeks to have the proposed
amendments become operative immediately. The Exchange requests that the
Commission waive the 30-day delayed operative date, so that the
proposed rule change may become immediately operative pursuant to
Section 19(b)(3)(A) and Rule 19b-4(f)(6) thereunder. Waiver of these
periods will allow the Exchange to immediately implement the proposed
rule change.
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    \16\ Id. In addition, Rule 19b-4(f)(6)(iii) requires a self-
regulatory organization to give the Commission written notice of its
intent to file 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. NYSE has satisfied
this requirement.
    \17\ Id.
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    As outlined more fully above, the Exchange believes that the
proposed relief is limited in nature, and that the benefits of the
proposed relief outweigh the potential harms. In particular, the
proposed suspension of NYSE Rule 123D(3) would be applicable only to
the opening transactions on September 15, 2008 for nine Lehman
Preferred securities. Similarly, the proposed temporary suspension of
NYSE Rule 36.30 is only applicable for posts 10 and 11 on the Floor of
the Exchange to respond to the emergency reallocation of Lehman
Brothers securities to Spear Leeds, and the suspension would end the
earlier of (i) the installation of telephone wires at posts 10 and 11
that connect to Spear Leeds' off-Floor locations; or (ii) the end of
the temporary reallocation of the securities assigned to Lehman
Brothers to Spear Leeds.\18\ Moreover, given the rapidity of recent
developments, the NYSE believes that immediate effectiveness is
required in order to avoid significant disruption to the market. The
NYSE believes that this need satisfies the standards set out in the
Exchange Act and related rules regarding immediate effectiveness
filings.
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    \18\ Subsequent to filing this proposed rule change, the
Exchange informed the Commission that installation of telephone
wires at posts 10 and 11 connecting to Spear Leeds's off-Floor
locations was completed the afternoon of September 15, 2008. Thus,
the suspension would end and Rule 36.30 would be in effect again
prior to the opening of trading on September 16, 2008. Telephone
conversation between Clare Saperstein, Director, Office of the
General Counsel, Exchange, and Nathan Saunders, Special Counsel,
Division of Trading and Markets, Commission, September 15, 2008.
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    The Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest.
The Commission therefore grants the Exchange's request and designates
the proposal to be operative upon filing.\19\
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    \19\ For purposes only of waiving the 30-day operative delay of
this proposal, the Commission has considered the proposed rule's
impact on efficiency, competition, and capital formation. 15 U.S.C.
78c(f).
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    At any time within 60 days of the filing of the proposed rule
change, the Commission may summarily abrogate 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.

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-NYSE-2008-84 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, Station Place, 100 F Street, NE., Washington,
DC 20549-1090.
All submissions should refer to File Number SR-NYSE-2008-84. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/
sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for inspection and
copying in the Commission's Public Reference Room, on official business
days between the hours of 10 a.m. and 3 p.m. Copies of such filing also
will be available for inspection and copying at the principal office of
NYSE. 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--
NYSE-2008-84 and should be submitted on or before October 22, 2008.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\20\
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    \20\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-22966 Filed 9-30-08; 8:45 am]

BILLING CODE 8011-01-P


[Federal Register: November 29, 2006 (Volume 71, Number 229)]
[Notices]
[Page 69153-69154]
[DOCID:fr29no06-87]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54794; File No. SR-FICC-2006-18]

Self-Regulatory Organizations; Fixed Income Clearing Corporation;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend Certain Administrative Provisions of the Rules of the Government
Securities Division and the Mortgage-Backed Securities Division

November 20, 2006.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on October 12, 2006, the
Fixed Income Clearing Corporation (``FICC'') filed with the Securities
and Exchange Commission (``Commission'') and on October 17, 2006,
amended\2\ the proposed rule change described in Items I, II, and III
below, which items have been prepared primarily by FICC. FICC filed the
proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act
\3\ and Rule 19b-4(f)(3) \4\ thereunder so that the proposal was
effective upon filing with the Commission. The Commission is publishing
this notice to solicit comments on the rule change from interested
parties.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ The amendment deleted a proposal that would have enabled
FICC to rely on signatures transmitted, recorded, or stored by any
electronic, optical, or similar means because a substantively
similar rule already exists.
    \3\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \4\ 17 CFR 240.19b-4(f)(3).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The purpose of the rule change is to amend certain administrative
provisions of the rules of FICC's Government Securities Division
(``GSD'') and Mortgage-Backed Securities Division (``MBSD'') to create
more uniformity between FICC's rules and the rules of FICC's affiliate,
the National Securities Clearing Corporation (``NSCC''). FICC is also
making technical amendments to the administrative rules of FICC.

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

    In its filing with the Commission, FICC 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. FICC has prepared summaries, set forth in sections (A),
(B), and (C) below, of the most significant aspects of these
statements.\5\
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    \5\ The Commission has modified the text of the summaries
prepared by FICC.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

    FICC believes that amending certain administrative provisions of
the rules of GSD and MBSD to create more uniformity between the rules
of FICC and NSCC will provide more clarity to the members of FICC and
NSCC.
(i) Proposed GSD Rule Changes
Rule 28--Forms
    Currently, GSD Rule 28 states that the delivery of forms of lists,
notices, and other documents may be delivered by the use of any media,
including magnetic tape, discs, or cards. FICC proposes to remove
language referring to ``magnetic tapes, discs, or cards'' since these
modes of delivery are outdated.
Rule 29--Release of Clearing Data
    FICC proposes to amend GSD Rule 29 so that it is structured in a
way that is similar to the analogous NSCC rule. Therefore, FICC
proposes to delete numbered section subheadings and identify provisions
going forward with the letters (a) through (g). FICC proposes to delete
Section 7 of Rule 29 since FICC no longer follows this procedure.
Rule 30--Lists To Be Maintained
    FICC proposes to amend GSD Rule 30 so that it includes Sponsored
Members as a category of members for which FICC will maintain a list.
Rule 31--Distribution Facilities
    Since FICC does not currently maintain distribution facilities,
FICC proposes to amend GSD Rule 31 by including language indicating
that ``if deemed necessary'' FICC will ``establish'' distribution
facilities. FICC does not propose to alter the guidelines listed in the
rule.
(ii) Proposed MBSD Rule Changes
Clearing Rule 8 and EPN Rule 8--Arbitration of Disputes
    FICC proposes to delete MBSD Clearing Rule 8 of Article V and MBSD
EPN Rule 8 of Article X since the provisions are outdated and have
never been invoked by MBSD.
Clearing Rule 10 and EPN Rule 10--Amendment of Rules
    FICC proposes to revise MBSD Clearing Rule 10 of Article V and MBSD
EPN Rule 10 of Article X with language similar to that of the GSD and
NSCC rules.\6\ The rule will continue to provide for prompt
notification to all participants, limited purpose participants, EPN
users, and registered clearing agencies of proposals made to change,
revise, add, or repeal any MBSD Rule. Participants may submit comments
to FICC upon receipt of the notification.
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    \6\ GSD Rule 33 and NSCC Rule 33.
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Clearing Rule 12 and EPN Rule 12--Waivers, Etc.
    FICC proposes to modify MBSD Clearing Rule 12 of Article V and MBSD
EPN Rule 12 of Article X with language similar to that of the GSD and
NSCC rules.\7\ Pursuant to the proposed rule, the Board of Directors or
any FICC officer having a rank of Vice President or higher may waive or
suspend times fixed by the rules or regulations issued by FICC whenever
waiver or suspension is deemed necessary or expedient in his or her
judgment. The waiver or suspension shall not continue in effect for
more than sixty calendar-days unless approved by the Board of Directors
within the sixty calendar-day period.
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    \7\ GSD Rule 22 and NSCC Rule 42.
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(iii) MBSD Administrative Rule Additions
    FICC proposes to add certain provisions to MBSD Clearing Rules and
MBSD EPN Rules that are currently contained in the rules of the GSD.
FICC believes the additions will provide guidance to MBSD members on
administrative matters.
Clearing Rule 19 and EPN Rule 19--Forms
    FICC proposes to add a rule identical to GSD Rule 28 to MBSD
Clearing Rules Article V and MBSD EPN Rules Article X allowing FICC to
use forms of lists, notices, or other documents in connection with any
transactions. Information required to be delivered to FICC may be
delivered by the use of any media, to be prescribed by FICC from time
to time.

EPN Rule 18--Release of Processing Data
    FICC proposes to add a rule similar to GSD Rule 29 to MBSD EPN
Rules Article X governing the release of EPN processing data upon
written request or pursuant to a written agreement between an EPN user
and FICC.
Clearing Rule 20 and EPN Rule 19--Lists to be Maintained
    FICC proposes to add a rule similar to GSD Rule 30 to MBSD Clearing
Rules Article V and MBSD EPN Rules Article X providing that MBSD will
maintain lists of all participants, limited purpose participants, and
EPN users to be made available upon request.
Clearing Rule 9 and EPN Rule 9--Captions
    FICC proposes to add a rule regarding captions to MBSD Clearing
Rules Article V and MSBD EPN Rules Article X to clarify that captions
to rules are for information and guidance only and should not be
considered by participants as substantive language.
Clearing Rule 21 and EPN Rule 20--Distribution Facilities
    FICC proposes to add a rule similar to GSD Rule 31 to MBSD Clearing
Rules Article V and MBSD EPN Rules Article X regarding distribution
facilities. Though MBSD does not currently maintain a distribution
facility, the rule will provide guidance if a facility is established
in the future.
    FICC believes the proposed rule change is consistent with Section
17A of the Act,\8\ as amended because it is concerned solely with the
administration of FICC and as such does not affect the safeguarding of
securities or funds in the custody or control of FICC or for which it
is responsible.
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    \8\ 15 U.S.C. 78q-1.
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(B) Self-Regulatory Organization's Statement on Burden on Competition

    FICC does not believe that the proposed rule change will have any
impact or impose any burden on competition.

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

    Written comments relating to the proposed rule change have not yet
been solicited or received. FICC will notify the Commission of any
written comments received by FICC.

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

    The foregoing proposed rule change has become effective upon filing
pursuant to Section 19(b)(3)(A)(iii) of the Act \9\ and Rule 19b-
4(f)(3)\10\ thereunder because the rule effects a change in an existing
service of FICC that does not adversely affect the safeguarding of
securities or funds in the custody or control of FICC or for which it
is responsible. At any time within sixty days of the filing of the
proposed rule change,\11\ the Commission may summarily abrogate 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.
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    \9\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \10\ 17 CFR 240.19b-4(f)(3).
    \11\ For purposes of calculating the sixty-day period within
which the Commission may summarily abrogate the proposed rule change
under Section 19(b)(3)(C) of the Act, the Commission considers the
period to commence on the date on which the last amendment to the
proposed rule change was filed with the Commission. 15 U.S.C.
78s(b)(3)(C).
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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-FICC-2006-18 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-FICC-2006-18. 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 Section, 100 F Street,
NE., Washington, DC 20549. Copies of such filings also will be
available for inspection and copying at the principal office of FICC
and on FICC's Web site at http://www.ficc.com/commondocs/rule.filings/rule.filing.06-18.amendment1.pdf.
 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-FICC-2006-18 and should be submitted on or before
December 20, 2006.

    For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\12\
Nancy M. Morris,
Secretary.
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    \12\ 17 CFR 200.30-3(a)(12).
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[FR Doc. E6-20210 Filed 11-28-06; 8:45 am]

BILLING CODE 8011-01-P


1 OFFICE OF PREVENTION, PESTICIDES AND TOXIC SUBSTANCES UNITED STATES ENVIRONMENTAL PROTECTION AGENCY WASHINGTON D. C., 20460 MEMORANDUM Date: September 22, 2005 SUBJECT: EFED RED Chapter for Napropamide chronic risk recalculations for mammals PC Code No. 103001; DP Barcode 308276 FROM: Donna M. Randall, Senior Effects Scientist, ERB II Environmental Fate and Effects Division ( 7507C) Office of Pesticide Programs THRU: Tom Bailey, Branch Chief, ERB II Environmental Fate and Effects Division ( 7507C) Office of Pesticide Programs TO: Demson Fuller, Chemical Review Manager Special Reregistration Review Division ( 7508C) Office of Pesticide Programs In the Napropamide RED ( August 15, 2005; DP Barcodes: D305594, D305593, D303452) a typo was identified in the spreadsheets used to calculate chronic risk quotients ( RQs) for mammals exposed to napropamide residue levels on dietary food items. This typo consisted of the 30 mg/ kg bw/ day no observable adverse effect level ( NOAEL) for rats being entered as 30 mg/ kg diet ( no observable adverse effect concentration; NOAEC). A revised Table 16 with the footnote clearly identifying this value as a NOAEL in mg/ kg bw/ day is provided.

Mammalian dose based chronic RQs for napropamide residue levels on dietary food items were recalculated using 30 mg/ kg bw/ day and are summarized in the attached revised Table 22. While this correction resulted in chronic RQs for mammals being reduced it did not change the primary conclusions of the risk characterization. Mammalian dose based RQs exceed the non endangered and endangered chronic LOC for all uses as concluded in the August 15, 2005 Napropamide RED.

For comparison purposes, Table 22 from the August 15, 2005 RED, which is based on dietary RQs, is also provided. It should be noted that the RQs in the revised Table 22 are dosebased and take into consideration adjustments of the laboratory test animal dose based NOAEL to other wildlife body weights ( small, 15 g; mid, 35 g; and large 1000 g) whereas the values in the August 15, 2005 table did not, it listed dietary based RQs. If the dose based RQs, which would have been converted from the dietary NOAEC and adjusted to other wildlife body weights had been reported then the dose based RQs would have been higher than the listed dietary based 2 RQs. For example, while the dietary based RQ was 38 for short grass at a broadcast application of 6 lbs ai/ A, the dose based RQs for short grass ranges from 187 to 415.

Revised Table 22. Mammalian chronic dose based RQ values for napropamide using upper bound Kenega residue levels.

Mammalian ( 15, 35 and 1000 g animals) Chronic Risk Quotients1 Application rate Short grass Tall grass Broadleaf plants/ small insects Fruits/ pods/ large insects 6 lbs ai/ A x 1 ( broadcast) 9.5  21 4.4   9.5 5.4   12 0.6   1.3 6 lbs ai/ A x 1 ( banded) 3.2   6.9 1.5   3.2 1.8   3.9 0.2   0.4 4 lbs ai/ A x 2 ( broadcast) 2 8.3  18 3.8   8.3 4.7  10 0.5   1.1 4 lbs ai/ A x 1 ( broadcast) 6.4  14 2.9   6.4 3.6   7.8 0.4   0.9 3 lbs ai/ A x 2 ( broadcast) 2 6.2  14 2.8   6.2 3.5   7.6 0.4   0.8 2 lbs ai/ A x 1 ( broadcast) 3.2   6.9 1.5   3.2 1.8   3.9 0.2   0.4 2 lbs ai/ A x 1 ( banded) 1.1  2.3 0.5   1.1 0.6   1.3 0.07   0.1 1.33 lbs ai/ A x 2 ( banded) 2 0.9   2.0 0.4   0.9 0.5   1.1 0.06   0.1 1 lb ai/ A x 1 ( broadcast) 3 1.6   3.5 0.7   1.6 0.9   2.0 0.1   0.22 1Rat NOAEC = 30 mg/ kg bw/ day 2Application interval of 60 days 3Lowest average use rate ( tobacco)

Exceedances of the chronic LOC are indicated in bold ( Chronic RQs for granivores do not exceed the chronic LOC for any of these uses.)

August 15, 2005 RED Table 22. Mammalian chronic RQ values for napropamide Mammalian Chronic Risk Quotients1 Application rate Short grass Tall grass Broadleaf plants/ small insects Fruits/ pods/ large insects 6 lbs ai/ A x 1 ( broadcast) 38.00 22.00 27.00 3.00 6 lbs ai/ A x 1 ( banded) 16.00 7.33 9.00 1.00 4 lbs ai/ A x 2 ( broadcast) 2 41.77 19.13 23.50 2.60 4 lbs ai/ A x 1 ( broadcast) 32.00 14.67 18.00 2.00 3 lbs ai/ A x 2 ( broadcast) 31.30 14.37 17.60 1.97 2 lbs ai/ A x 1 ( broadcast) 16.00 7.33 9.00 1.00 2 lbs ai/ A x 1 ( banded) 5.33 2.43 3.00 0.33 1.33 lbs ai/ A x 2 ( banded) 4.57 2.13 2.60 0.30 1 lb ai/ A x 1 ( broadcast) 3 8.00 3.67 4.50 0.50 1Rat NOAEC = 30 mg/ kg/ diet 2Application interval of 60 days 3Lowest average use rate ( tobacco)

exceedances indicated in bold 3 Revised Table 16. Summary of Napropamide Acute and Chronic Terrestrial Organism Toxicity Data Acute Toxicity Chronic Toxicity Species Oral Toxicity LD50 ( mg ai/ kg) ( except where noted) MRID Subacute Dietary LC50 ( mg ai/ kg) MRID NOAEC ( mg ai/ kgdiet ( except where noted) MRID Affected Endpoints Mallard Duck Anas platyrhynchos > 4640 229652 a > 5620 258393 113820 1,000 b 79548 and 79555 NA b Laboratory Rat Rattus norvegicus > 5000 230602 a NA NA 30 c 40362902 growth &

reproduction Honey bee ( Apis mellifera) > 113.5 ug ai/ bee 464591 15 NA NA NA NA NA a) Accession number b) The effect demonstrated on body weight was deemed not related to the toxicant effects of napropamide. This is because the effect was only demonstrated in the 3000 ppm males during the last two weeks of the study. The differences observed were slight, and appeared to be related to a slightly lighter initial body weight of the males in this group. Furthermore, there were no significant differences in mean body weight change between the control group and the 3000 ppm treatment group at any time during the course of the study. Therefore, EFED conclusion is that a LOAEC was not established in the study. Therefore, this NOAEC will not be used to calculate an RQ.

c) NOAEL mg ai/ kg bw/ day


[Federal Register: September 20, 2007 (Volume 72, Number 182)]
[Rules and Regulations]
[Page 53686-53687]
[DOCID:fr20se07-8]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R03-OAR-2007-0450; FRL-8469-4]

Approval and Promulgation of Air Quality Implementation Plans;
Delaware; Amendments to the Open Burning Regulation

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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SUMMARY: EPA is approving a State Implementation Plan (SIP) revision
submitted by the State of Delaware. This SIP revision pertains to the
amendments of Delaware's open burning regulation. EPA is approving this
SIP revision in accordance with the Clean Air Act.

DATES: Effective Date: This final rule is effective on October 22,
2007.

ADDRESSES: EPA has established a docket for this action under Docket ID
Number EPA-R03-OAR-2007-0450. All documents in the docket are listed in
the http://www.regulations.gov Web site. Although listed in the electronic

docket, some information is not publicly available, i.e., confidential
business information (CBI) or other information whose disclosure is
restricted by statute. Certain other material, such as copyrighted
material, is not placed on the Internet and will be publicly available
only in hard copy form. Publicly available docket materials are
available either electronically through http://www.regulations.gov or in hard

copy for public inspection during normal business hours at the Air
Protection Division, U.S. Environmental Protection Agency, Region III,
1650 Arch Street, Philadelphia, Pennsylvania 19103. Copies of the State
submittal are available at the Delaware Department of Natural Resources
& Environmental Control, 89 Kings Highway, P.O. Box 1401, Dover,
Delaware 19903.

FOR FURTHER INFORMATION CONTACT: Rose Quinto,<PHONE_NUMBER>, or by e-
mail at<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

I. Background

    On June 21, 2007 (72 FR 34207), EPA published a notice of proposed
rulemaking (NPR) for the State of Delaware. The NPR proposed approval
of Delaware's open burning regulation (Regulation No. 1113). The formal
SIP revision was submitted by the Delaware Department of Natural
Resources and Environmental Control (DNREC) on May 2, 2007. Other
specific requirements of Delaware's open burning regulation and the
rationale for EPA's proposed action are explained in the NPR and will
not be restated here. No public comments were received on the NPR.

II. Final Action

    EPA is approving Regulation No. 1113--Open Burning as a revision to
the Delaware SIP. This SIP revision was submitted on May 2, 2007.

III. Statutory and Executive Order Reviews

A. General Requirements

    Under Executive Order 12866 (58 FR 51735, October 4, 1993), this
action is not a ``significant regulatory action'' and therefore is not
subject to review by the Office of Management and Budget. For this
reason, this action is also not subject to Executive Order 13211,
``Actions Concerning Regulations That Significantly Affect Energy
Supply, Distribution, or Use'' (66 FR 28355, May 22, 2001). This action
merely approves state law as meeting Federal requirements and imposes
no additional requirements beyond those imposed by state law.
Accordingly, the Administrator certifies that this rule will not have a
significant economic impact on a substantial number of small entities
under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.). Because
this rule approves pre-existing requirements under state law and does
not impose any additional enforceable duty beyond that required by
state law, it does not contain any unfunded mandate or significantly or
uniquely affect small governments, as described in the Unfunded
Mandates Reform Act of 1995 (Pub. L. 104-4). This rule also does not
have tribal implications because it will not have a substantial direct
effect on one or more Indian tribes, on the relationship between the
Federal Government and Indian tribes, or on the distribution of power
and responsibilities between the Federal Government and Indian tribes,
as specified by Executive Order 13175 (65 FR 67249, November 9, 2000).
This action also does not have Federalism implications because it does
not have substantial direct effects on the States, on the relationship
between the national government and the States, or on the distribution
of power and responsibilities among the various levels of government,
as specified in Executive Order 13132 (64 FR 43255, August 10, 1999).
This action merely approves a state rule implementing a Federal
requirement, and does not alter the relationship or the distribution of
power and responsibilities established in the Clean Air Act. This rule
also is not subject to Executive Order 13045 ``Protection of Children
from Environmental Health Risks and Safety Risks'' (62 FR 19885, April
23, 1997), because it approves a state rule implementing a Federal
standard.
    In reviewing SIP submissions, EPA's role is to approve state
choices, provided that they meet the criteria of the Clean Air Act. In
this context, in the absence of a prior existing requirement for the
State to use voluntary consensus standards (VCS), EPA has no authority
to disapprove a SIP submission for failure to use VCS. It would thus be
inconsistent with applicable law for EPA, when it reviews a SIP
submission, to use VCS in place of a SIP submission that otherwise
satisfies the provisions of the Clean Air Act. Thus, the requirements
of section 12(d) of the National Technology Transfer and Advancement
Act of 1995 (15 U.S.C. 272 note) do not apply. This rule does not
impose an information collection burden under the provisions of the
Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.).

B. Submission to Congress and the Comptroller General

    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the
Small Business Regulatory Enforcement Fairness Act of 1996, generally
provides that before a rule may take effect, the agency promulgating
the rule must submit a rule report, which includes a copy of the rule,
to each House of the Congress and to the Comptroller General of the
United States. EPA will submit a report containing this rule and other
required information to the U.S. Senate, the U.S. House of
Representatives, and the Comptroller General of the United States prior
to publication of the rule in the Federal Register. This rule is not a
``major rule'' as defined by 5 U.S.C. 804(2).

C. Petitions for Judicial Review

    Under section 307(b)(1) of the Clean Air Act, petitions for
judicial review of this action must be filed in the United States Court
of Appeals for the appropriate circuit by November 19, 2007. Filing a
petition for reconsideration by the Administrator of this final rule
does not affect the finality of this rule for the purposes of judicial
review nor does it extend the time within which a petition for judicial
review may be filed, and shall not postpone the effectiveness of such
rule or action. This action, pertaining to Delaware's amendments to the
open burning regulation, may not be challenged later in proceedings to

enforce its requirements. (See section 307(b)(2).)

List of Subjects in 40 CFR Part 52

    Environmental protection, Nitrogen dioxide, Ozone, Reporting and
recordkeeping requirements, Volatile organic compounds.

    Dated: September 6, 2007.
William T. Wisniewski,
Acting Regional Administrator, Region III.

0
40 CFR part 52 is amended as follows:

PART 52--[AMENDED]

0
1. The authority citation for part 52 continues to read as follows:

    Authority: 42 U.S.C. 7401 et seq.

Subpart I--Delaware

0
2. In Sec.  52.420, the table in paragraph (c) is amended by revising
the title and entries for Regulation No. 13--Open Burning to read as
follows:

Sec.  52.420  Identification of plan.

* * * * *
    (c) * * *

                                                      EPA-Approved Regulations in the Delaware SIP
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                State
          State citation                Title/subject      effective date            EPA approval  date                    Additional explanation
--------------------------------------------------------------------------------------------------------------------------------------------------------

                                                                      * * * * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------
Regulation 1113                                                             Open Burning (Formerly Regulation 13)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Section 1.0.......................  Purpose..............        04/11/07  09/20/07 [Insert page number where the
                                                                            document begins].
Section 2.0.......................  Applicability........        04/11/07  09/20/07 [Insert page number where the
                                                                            document begins].
Section 3.0.......................  Definitions..........        04/11/07  09/20/07 [Insert page number where the
                                                                            document begins].
Section 4.0.......................  Prohibitions and             04/11/07  09/20/07 [Insert page number where the
                                     Related Provisions.                    document begins].
Section 5.0.......................  Season and Time              04/11/07  09/20/07 [Insert page number where the
                                     Restrictions.                          document begins].
Section 6.0.......................  Allowable Open               04/11/07  09/20/07 [Insert page number where the
                                     Burning.                               document begins].
Section 7.0.......................  Exemptions...........        04/11/07  09/20/07 [Insert page number where the
                                                                            document begins].

                                                                      * * * * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------

* * * * * 7
[FR Doc. E7-18352 Filed 9-19-07; 8:45 am]

BILLING CODE 6560-50-P