40862 Federal Register / Vol. 74, No. 155 / Thursday, August 13, 2009 / Notices 

8 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3See Securities Exchange Release No. 59362 

(February 5, 2009), 74 FR 6931 (February 11, 2009) 

(SR–Phlx–2009–10). 

4 If the Exchange determines that an authorized 

individual has caused a Member Organization to 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–1090. 

All submissions should refer to File 

Number SR–NYSEAmex–2009–54. 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 the filing also will be available 

for inspection and copying at the 

principal office of the Exchange. All 

comments received will be posted 

without change; the Commission does 

not edit personal identifying 

information from submissions. You 

should submit only information that 

you wish to make available publicly. All 

submissions should refer to File 

Number SR–NYSEAmex–2009–54 and 

should be submitted on or before 

September 3, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–19375 Filed 8–12–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60456; File No. SR–Phlx– 

2009–63] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX, Inc.; Notice of 

Filing and Immediate Effectiveness of 

a Proposed Rule Change Relating to 

Extension of Sponsored Access Pilot 

Program 

August 7, 2009. 

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 July 29, 

2009, NASDAQ OMX PHLX, 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 prepared 

by the Exchange. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to renew its 

sponsored access rule for a pilot period 

ending on October 29, 2009. The 

program expires on July 29, 2009.3 The 

text of the proposed rule change is 

available on the Exchange’s Web site at 

http://www.nasdaqtrader.com/ 

micro.aspx?id=PHLXRulefilings, at the 

principal office of the Exchange, and at 

the Commission’s Public Reference 

Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

self-regulatory organization 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 those statements may be examined at 

the places specified in Item IV below. 

The Exchange has prepared summaries, 

set forth in sections A, B, and C below, 

of the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of the proposed rule 

change is to attract additional business 

by renewing its sponsored access rule, 

which is similar to that of other 

exchanges. During the previous pilot 

program, no member organizations 

availed themselves of the program, but 

the Exchange seeks to make another 

attempt to institute the program, for a 

pilot period expiring October 29, 2009. 

The Exchange will evaluate whether to 

continue the sponsored access program 

or not. 

A Sponsored Participant is a nonmember of the Exchange, such as an 

institutional investor, that gains access 

to the Exchange and trades under a 

Sponsoring Member’s execution and 

clearing identity pursuant to a 

sponsorship arrangement between such 

non-member and a member 

organization. Specifically, the Exchange 

proposes to permit Sponsored 

Participants to be sponsored by 

Sponsoring Member Organizations, and 

thereby access the Exchange, subject to 

certain requirements. These 

requirements are intended to confirm 

that the Sponsored Participant is 

required to and had procedures in place 

to comply with Exchange rules, and that 

the Sponsoring Member Organization 

takes responsibility for the Sponsored 

Participant’s activity on the Exchange. 

First, the Sponsored Participant and 

its Sponsoring Member Organization 

must have entered into and maintained 

an Access Agreement with the 

Exchange. The Sponsoring Member 

Organization must designate the 

Sponsored Participant by name in an 

addendum to the Access Agreement. 

Second, there must be a Sponsored 

Participant Agreement between the 

Sponsoring Member Organization and 

the Sponsored Participant that contains 

the following sponsorship provisions, 

enumerated in full in Rule 1094(b)(ii): 

(i) The orders of the Sponsored 

Participant are binding in all respects on 

the Sponsoring Member Organization; 

(ii) The Sponsoring Member 

Organization is responsible for the 

actions of the Sponsored Participant; 

(iii) In addition to the Sponsoring 

Member Organization being required to 

comply with the Exchange Certificate of 

Incorporation, By-laws, Rules and 

procedures of the Exchange, the 

Sponsored Participant shall do so as if 

such Sponsored Participant were an 

Exchange member organization; 

(iv) The Sponsored Participant shall 

maintain, keep current and provide to 

the Sponsoring Member Organization a 

list of individuals authorized to obtain 

access to the Exchange on behalf of the 

Sponsored Participant; 

(v) The Sponsored Participant shall 

familiarize its authorized individuals 

with all of the Sponsored Participant’s 

obligations under this Rule and will 

assure that they receive appropriate 

training prior to any use or access to the 

Exchange; 

(vi) The Sponsored Participant may 

not permit anyone other than authorized 

individuals to use or obtain access to 

the Exchange; 4


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Federal Register / Vol. 74, No. 155 / Thursday, August 13, 2009 / Notices 40863 

violate the Exchange’s Rules, the Exchange could 

direct the Member Organization to suspend or 

withdraw the person’s status as an authorized 

individual. 

5 15 U.S.C. 78f(b). 

6 15 U.S.C. 78f(b)(5). 

7 15 U.S.C. 78s(b)(3)(A). 

8 17 CFR 240.19b–4(f)(6). 

9 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule 

19b–4(f)(6)(iii) requires that a self-regulatory 

organization submit to the Commission 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 satisfied the fiveday pre-filing notice requirement. 

10 Id. 

11See, e.g., International Securities Exchange, 

LLC Rule 706 and NYSE Arca, Inc. Rule 7.29. 

12For the 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). 

(vii) The Sponsored Participant shall 

take reasonable security precautions to 

prevent unauthorized use or access to 

the Exchange, including unauthorized 

entry of information into the Exchange, 

and agrees that it is responsible for any 

and all orders, trades and other 

messages and instructions entered, 

transmitted or received under 

identifiers, passwords and security 

codes of authorized individuals, and for 

the trading and other consequences 

thereof; 

(viii) The Sponsored Participant 

acknowledges its responsibility to 

establish adequate procedures and 

controls that permit it to effectively 

monitor its employees’, agents’ and 

Participants’ use and access to the 

Exchange for compliance with the terms 

of this agreement; 

(ix) The Sponsored Participant shall 

pay when due all amounts, if any, 

payable to Sponsoring Member 

Organization, the Exchange, or any 

other third parties that arise from the 

Sponsored Participant’s access to and 

use of the Exchange. Such amounts 

include, but are not limited to 

applicable exchange and regulatory fees. 

Third, the Sponsoring Member 

Organization must provide the 

Exchange with a Sponsored Participant 

Addendum to its Access Agreement 

acknowledging its responsibility for the 

orders, executions and actions of its 

Sponsored Participant at issue. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act 5 in general, and furthers the 

objectives of Section 6(b)(5) of the Act 6

in particular, in that it is designed to 

promote just and equitable principles of 

trade, 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 by 

helping market participants seeking 

access to a marketplace. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition not 

necessary or appropriate in furtherance 

of the purposes of the Act. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were either 

solicited or received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing rule change 

does not: (1) Significantly affect the 

protection of investors or the public 

interest; (2) impose any significant 

burden on competition; and (3) become 

operative for 30 days after the date of 

this filing, or such shorter time as the 

Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 7 and Rule 19b– 

4(f)(6) thereunder.8

A proposed rule change filed under 

19b–4(f)(6) normally may not become 

operative prior to 30 days after the date 

of filing.9 However, Rule 19b– 

4(f)(6)(iii) 10 permits the Commission to 

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest. The 

Exchange has requested that the 

Commission waive the 30-day operative 

delay so that the proposal may become 

operative upon filing. The Commission 

believes that waiving the 30-day 

operative delay is consistent with the 

protection of investors and the public 

interest because such waiver would 

allow the pilot program to continue 

uninterrupted. The Commission notes 

that the proposal is substantially similar 

to the rules of other national securities 

exchanges.11 Accordingly, the 

Commission hereby grants the 

Exchange’s request and designates the 

proposal operative upon filing.12

At any time within 60 days of the 

filing of such 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 rulecomments@sec.gov. Please include File 

Number SR–Phlx–2009–63 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–1090. 

All submissions should refer to File 

Number SR–Phlx–2009–63. 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 the filing also will be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change; 

the Commission does not edit personal 

identifying information from 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR–Phlx– 

2009–63 and should be submitted on or 

before September 3, 2009. 


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40864 Federal Register / Vol. 74, No. 155 / Thursday, August 13, 2009 / Notices 

13 17 CFR 200.30–3(a)(12). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–19407 Filed 8–12–09; 8:45 am] 

BILLING CODE 8010–01–P 

OFFICE OF THE UNITED STATES 

TRADE REPRESENTATIVE 

[Docket No. USTR–2009–0022] 

Implementation of the U.S.-EC Beef 

Hormones Memorandum of 

Understanding 

AGENCY: Office of the United States 

Trade Representative. 

ACTION: Notice, delay of action, and 

request for comments. 

SUMMARY: On May 13, 2009, the United 

States and the European Communities 

(‘‘EC’’) announced the signing of a 

Memorandum of Understanding (MOU) 

in the Beef Hormones dispute. Under 

the first phase of the agreement, the EC 

is obligated to open a new beef tariffrate quota (TRQ) in the amount of 

20,000 metric tons at zero rate of duty. 

The United States in turn is obligated 

not to increase additional duties above 

those in effect as of March 23, 2009. The 

EC opened the new beef TRQ on August 

1, 2009. This notice undertakes the 

process necessary to implement U.S. 

obligations under the first phase of the 

MOU and to pursue additional market 

access under subsequent phases of the 

MOU. 

DATES: Effective Date: A modified list of 

products subject to additional duties in 

connection with the Beef Hormones 

dispute (announced on January 15, 

2009) had been scheduled to be effective 

with respect to products that are 

entered, or withdrawn from warehouse, 

for consumption on or after August 15, 

2009. In order to meet U.S. obligations 

under the MOU, the United States Trade 

Representative (‘‘Trade Representative’’) 

has now changed this effective date to 

September 19, 2009. Moreover, as 

explained below, the Trade 

Representative will take additional steps 

before that time in order to continue to 

implement U.S. obligations under the 

MOU. 

FOR FURTHER INFORMATION CONTACT: 

Roger Wentzel, Director, Agricultural 

Affairs, (202) 395–6127 or David 

Weiner, Director for the European 

Union, (202) 395–4620 for questions 

concerning the EC–Beef Hormones 

dispute; or William Busis, Associate 

General Counsel and Chair of the 

Section 301 Committee, (202) 395–3150, 

for questions concerning procedures 

under Section 301. 

SUPPLEMENTARY INFORMATION: 

A. Background 

On January 15, 2009, the Trade 

Representative announced 

modifications (‘‘January 15 

modifications’’) to the action taken in 

July 1999 in connection with the World 

Trade Organization (‘‘WTO’’) 

authorization of the United States in the 

EC–Beef Hormones dispute to suspend 

concessions and related obligations with 

respect to the European Communities 

(‘‘EC’’). See 74 FR 4265 (Jan. 23, 2009). 

The January 15 modifications initially 

had an effective date of March 23, 2009. 

The Trade Representative subsequently 

delayed the effective date of the 

additional duties imposed under the 

January 15 modifications to April 23, 

2009; to May 9, 2009; and then to 

August 15, 2009. The effective date of 

the removal of duties under the January 

15 modifications remained March 23, 

2009. See 74 FR 11613 (March 18, 

2009); 74 FR 12402 (March 24, 2009); 74 

FR 19263 (April 28, 2009). As a result 

of removal of duties on March 23, 2009, 

a reduced list of products subject to 

additional duties (at a rate of 100 

percent ad valorem) has been in place 

since that time. This reduced list is set 

out in the Annex to this notice. Under 

the first phase of the MOU, the United 

States maintains the right to impose 

these additional duties, and is obligated 

not to impose additional duties on any 

other products in connection with the 

EC–Beef Hormones WTO dispute. 

The first phase of the MOU concludes 

on August 3, 2012. Under a possible 

second phase of the MOU, the EC would 

expand the beef TRQ to 45,000 metric 

tons, and the United States would 

suspend all of the additional duties 

imposed in connection with the EC– 

Beef Hormones WTO dispute. 

For additional background concerning 

the EC–Beef Hormones WTO dispute; 

the January 15 modifications; and the 

prior delays in the effective date of the 

modifications, see 73 FR 66066 (Nov. 6, 

2008); 74 FR 4265 (Jan. 23, 2009), 74 FR 

11613 (March 18, 2009), 74 FR 12402 

(March 24, 2009), 74 FR 19263 (April 

28, 2009), and 74 FR 22626 (May 13, 

2009). Further information on the May 

13, 2009 U.S.-EC MOU may be found on 

USTR=s Web site, http://www.ustr.gov. 

B. Delay of Action 

Pursuant to Section 305 of the Trade 

Act of 1974, the Trade Representative 

has determined that a further delay in 

implementation of the January 15 

modifications would be desirable to 

obtain a satisfactory solution with 

respect to the EC’s ban on U.S. beef. 

Accordingly, the Trade Representative 

has decided to delay the effective date 

of the additional duties imposed under 

the January 15 modifications from 

August 15, 2009 to September 19, 2009. 

The actions to be delayed are: (i) The 

imposition of increased duties on 

additional products, (ii) the application 

to products of additional EC member 

States of the increased duties on 

currently covered products, and (iii) the 

increase in the level of duties on one of 

the products that is being maintained on 

the product list. These are the same 

actions that were previously delayed 

until August 15, 2009. 

The increased duties under the 

January 15 modifications are set out in 

Annex II of the notice published at 74 

FR 12402 (March 24, 2009), as modified 

by the notice published at 74 FR 19263 

(April 28, 2009). In order to delay the 

effective date of the increased duties 

until September 19, 2009, the Trade 

Representative has decided that the 

modifications to the Harmonized Tariff 

Schedule of the United States that are 

contained in Parts A and B of Annex II 

shall be effective with respect to articles 

entered, or withdrawn from warehouse 

for consumption, on or after September 

19, 2009. As explained below, however, 

further steps are contemplated before 

that time. In addition, any merchandise 

covered under Part B of Annex II of the 

notice published at 74 FR 12402 that is 

admitted to a U.S. foreign-trade zone on 

or after September 19, 2009 must be 

admitted in ‘‘privileged foreign status’’ 

as defined in 19 CFR 146.41. Questions 

concerning customs matters may be 

directed to Renee Chovanec, 

International Coordination, Office of 

International Trade, U.S. Customs and 

Border Protection, (202) 863–6384. 

C. Opportunity for Public Comments 

Prior to September 19, 2009, the 

Trade Representative intends to take 

further steps under the Trade Act to 

implement U.S. obligations under the 

first phase of the MOU and to pursue 

additional market access under 

subsequent phases of the MOU. The 

Section 301 Committee seeks comments 

on these matters, including with regard 

to the imposition of 100 percent duties 

on the products currently subject to 

such duties throughout the remainder of 

the first phase of the MOU. (The list of 

products currently subject to 100 

percent duties in connection with EC– 

Beef Hormones WTO dispute is set out 

in the Annex to this notice.) As noted 

above, the United States maintains the 

right to impose these additional duties 


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