Federal Register / Vol. 74, No. 186 / Monday, September 28, 2009 / Notices 49415 

recapture of a Bonus, Annuity Investors 

Life will redeem interests in the 

Contract owner’s annuity account at a 

price determined on the basis of current 

net asset value of the relevant Account. 

The amount recaptured will equal the 

amount of the Bonus that Annuity 

Investors Life paid or will pay out of its 

general account assets. Although 

Contract owners will be entitled to 

retain any investment gain attributable 

to the Bonus, the amount of such gain 

will be determined on the basis of the 

current net asset value of the relevant 

Account. Thus, no dilution will result 

from the recapture of the Bonus. The 

second problem that Rule 22c–1 was 

designed to address, namely, 

speculative trading practices calculated 

to take advantage of backward pricing, 

also will not occur as a result of the 

recapture of the Bonus. 

Because neither of the problems that 

Rule 22c–1 was designed to address is 

found in the recapture of the Bonus, 

Rule 22c–1 should have no application 

to any Bonus under the Current Bonus 

Contracts or Future Bonus Contracts. 

However, to avoid any uncertainty as to 

full compliance with the Act, 

Applicants request exemptions from the 

provisions of Rule 22c–1 to the extent 

deemed necessary to permit them to 

recapture the Bonus under the Current 

Bonus Contracts and Future Bonus 

Contracts. 

13. Applicants assert that the Bonus is 

and will be attractive to and in the 

interests of investors because it will 

allow Contract owners to apply 104% or 

105%, as the case may be, of their 

Purchase Payments to work for them in 

their selected investment options. Also, 

any earnings attributable to the Bonus 

will be retained by the Contract owner, 

and the principal amount of the Bonus 

also will be retained if the contingencies 

set forth in this Application are 

satisfied, i.e., the Contract is not 

returned for a refund during the freelook period and the Bonus is not 

credited to a Purchase Payment made 

under the Contract within the 12 month 

period that ends on the Death Benefit 

Valuation Date. 

14. Further, Applicants submit that 

the recapture of any Bonus only applies 

in relation to the risk of anti-selection 

against Annuity Investors Life. In the 

context of the contingencies described 

in this Application, anti-selection can 

generally be described as a risk that 

Contract owners obtain an undue 

advantage based on elements of fairness 

to Annuity Investors Life and the 

actuarial and other factors it takes into 

account in designing the Contracts. 

Annuity Investors Life provides the 

Bonuses from its general accounts on a 

guaranteed basis. Thus, Annuity 

Investors Life undertakes a financial 

obligation that contemplates the 

retention of the Contracts by its owners 

over an extended period, consistent 

with the long term nature of retirement 

planning. Annuity Investors Life 

generally expects to recover its costs, 

including Bonuses, over an anticipated 

duration while a Contract is in force. 

The right to recapture Bonuses credited 

to Purchase Payments made within the 

12 month period ending on the Death 

Benefit Valuation Date protects Annuity 

Investors Life against the risk that 

Contract owners will contribute larger 

amounts shortly before death, while 

avoiding Contract charges over the long 

term. With respect to refunds paid upon 

the return of Contracts within the freelook period, the amount payable by the 

applicable Annuity Investors Life must 

be reduced by the allocated Bonuses. 

Otherwise, purchasers could apply for 

Contracts for the sole purpose of 

exercising the free-look refund 

provision and making a quick profit. 

Conclusion 

For the reasons summarized above, 

Applicants submit that their exemptive 

request meets the standards set out in 

Sections 6(c) of the Act, namely, that the 

exemptions requested are necessary or 

appropriate in the public interest and 

consistent with the protection of 

investors and the purposes fairly 

intended by the policy and provisions of 

the Act, and that, therefore, the 

Commission should grant the requested 

order. 

For the Commission, by the Division of 

Investment Management, pursuant to 

delegated authority. 

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–23277 Filed 9–25–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[File No. 500–1] 

In the Matter of DTVN Holdings, Inc., 

Employee Solutions, Inc., Falcon 

Natural Gas Corp., Internet Commerce 

& Communications, Inc., Osage 

Systems Group, Inc., Payless 

Cashways, Inc., PC Service Source, 

Inc., Play by Play Toys & Novelties, 

Inc., Powerbrief, Inc., Southern Energy 

Company, Inc., Strategia Corp. (n/k/a 

Catthai Corp.), and TTI Industries, Inc.; 

Order of Suspension of Trading 

September 24, 2009. 

It appears to the Securities and 

Exchange Commission that there is a 

lack of current and accurate information 

concerning the securities of DTVN 

Holdings, Inc. because it has not filed 

any periodic reports since the period 

ended June 30, 2002. 

It appears to the Securities and 

Exchange Commission that there is a 

lack of current and accurate information 

concerning the securities of Employee 

Solutions, Inc. because it has not filed 

any periodic reports since the period 

ended September 30, 2000. 

It appears to the Securities and 

Exchange Commission that there is a 

lack of current and accurate information 

concerning the securities of Falcon 

Natural Gas Corp. because it has not 

filed any periodic reports since the 

period ended September 30, 2006. 

It appears to the Securities and 

Exchange Commission that there is a 

lack of current and accurate information 

concerning the securities of Internet 

Commerce & Communications, Inc. 

because it has not filed any periodic 

reports since the period ended June 30, 

2001. 

It appears to the Securities and 

Exchange Commission that there is a 

lack of current and accurate information 

concerning the securities of Osage 

Systems Group, Inc. because it has not 

filed any periodic reports since the 

period ended September 30, 2000. 

It appears to the Securities and 

Exchange Commission that there is a 

lack of current and accurate information 

concerning the securities of Payless 

Cashways, Inc. because it has not filed 

any periodic reports since the period 

ended May 26, 2001. 

It appears to the Securities and 

Exchange Commission that there is a 

lack of current and accurate information 

concerning the securities of PC Service 

Source, Inc. because it has not filed any 

periodic reports since the period ended 

March 31, 2000. 

It appears to the Securities and 

Exchange Commission that there is a 


srobinson on DSKHWCL6B1PROD with NOTICES
49416 Federal Register / Vol. 74, No. 186 / Monday, September 28, 2009 / Notices 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 59838 

(April 28, 2009), 74 FR 20767 (the ‘‘Notice’’). 

4 In Amendment No. 1, the Exchange specifies an 

effective date of October 5, 2009 for the proposed 

rule change, if the proposed rule change is 

approved by the Commission, and makes certain 

other changes as described in Section V, infra. The 

text of Amendment No. 1 is available on the 

Exchange’s Web site at http://www.nyse.com, at the 

principal office of the Exchange, and at the 

Commission’s Public Reference Room. 

5The Exchange will publish the email address or 

other electronic means to be used for all clearly 

erroneous filings in a circular distributed to Equity 

Trading Permit (‘‘ETP’’) Holders. 

6Specifically, if an order is initially routed by a 

participant to Market Center A and subsequently 

routed to NYSE Arca, the proposed rule will 

generally require Market Center A to file with the 

Exchange within 30 minutes from the time it 

receives its participant’s timely filed request for 

review. This proposed rule caps the filing deadline 

for an away market center at 60 minutes from the 

time of the execution at issue. 

7See NYSE Arca Rule 7.10(b). 

lack of current and accurate information 

concerning the securities of Play by Play 

Toys & Novelties, Inc. because it has not 

filed any periodic reports since the 

period ended April 30, 2001. 

It appears to the Securities and 

Exchange Commission that there is a 

lack of current and accurate information 

concerning the securities of Powerbrief, 

Inc. because it has not filed any periodic 

reports since the period ended June 30, 

2001. 

It appears to the Securities and 

Exchange Commission that there is a 

lack of current and accurate information 

concerning the securities of Southern 

Energy Company, Inc. because it has not 

filed any periodic reports for the period 

ended March 31, 1999 through the 

period ended September 30, 2008, or for 

the period ended June 30, 2009. 

It appears to the Securities and 

Exchange Commission that there is a 

lack of current and accurate information 

concerning the securities of Strategia 

Corp. (n/k/a Catthai Corp.) because it 

has not filed any periodic reports since 

the period ended September 30, 2000. 

It appears to the Securities and 

Exchange Commission that there is a 

lack of current and accurate information 

concerning the securities of TTI 

Industries, Inc. because it has not filed 

any periodic reports since the period 

ended February 29, 2000. 

The Commission is of the opinion that 

the public interest and the protection of 

investors require a suspension of trading 

in the securities of the above-listed 

companies. Therefore, it is ordered, 

pursuant to Section 12(k) of the 

Securities Exchange Act of 1934, that 

trading in the securities of the abovelisted companies is suspended for the 

period from 9:30 a.m. EDT on 

September 24, 2009, through 11:59 p.m. 

EDT on October 7, 2009. 

By the Commission. 

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–23422 Filed 9–24–09; 11:15 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60706; File No. SR– 

NYSEArca–2009–36] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing of 

Amendment No. 1 and Order Granting 

Accelerated Approval of Proposed 

Rule Change, as Modified by 

Amendment No. 1 Thereto, Relating to 

NYSE Arca Equities Rule 7.10 

Governing Clearly Erroneous 

Executions 

September 22, 2009. 

I. Introduction 

On April 27, 2009, NYSE Arca, Inc. 

(‘‘NYSE Arca’’ or the ‘‘Exchange’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 

to Section 19(b)(1) of the Securities 

Exchange Act of 1934 (‘‘Act’’) 1 and Rule 

19b–4 thereunder,2 a proposed rule 

change to amend NYSE Arca Equities 

Rule 7.10 governing clearly erroneous 

executions. The proposed rule change 

was published for comment in the 

Federal Register on May 5, 2009.3 On 

September 21, 2009, the Exchange 

submitted Amendment No. 1 to the 

proposed rule change.4 The Commission 

received no comment letters on the 

proposal. This order provides notice of 

filing of Amendment No. 1 to the 

proposed rule change and grants 

accelerated approval to the proposed 

rule change, as modified by Amendment 

No. 1. 

II. Description of the Proposal 

The Exchange proposes to amend 

NYSE Arca Rule 7.10 in order to 

improve the Exchange’s rule regarding 

clearly erroneous executions. The 

proposed changes are part of a marketwide effort designed to provide 

transparency and finality with respect to 

clearly erroneous executions. This effort 

seeks to achieve consistent results for 

participants across U.S. equities 

exchanges while maintaining a fair and 

orderly market, protecting investors and 

protecting the public interest. A 

summary of the most significant 

proposed changes are discussed below. 

A more detailed description of the 

proposed changes may be found in the 

Notice. 

A. ETP Holder Initiated Review Requests 

1. Requests for Review 

The Exchange proposes that requests 

for review must be received by the 

Exchange by electronic mail (‘‘email’’), 

or other electronic means specified from 

time to time by the Exchange, within 30 

minutes of the execution time for orders 

initially routed to and executed on the 

Exchange.5 However, requests for 

review relating to orders routed from 

another market center to NYSE Arca 

will have an additional 30 minutes.6

These requests for review must contain 

certain essential identifying 

information, including the time of the 

transaction(s), security symbol(s), 

number of shares, price(s), side (bought 

or sold), and factual basis for believing 

that the trade is clearly erroneous. 

The proposed rule requires the 

Exchange to notify the counterparty to 

a trade only upon receipt of a timely 

filed request for review that satisfies the 

numerical guidelines set forth within 

the Rule. The Exchange also proposes to 

allow an Officer of the Corporation or 

such other senior level employee 

designee (‘‘Officer’’) of NYSE Arca to 

request additional information from 

each party to a transaction under 

review. Parties to the review will have 

30 minutes from the time of the request 

to provide additional supporting 

information. 

2. Threshold Factors and Numerical 

Guidelines 

Currently, the Exchange does not 

identify specific numeric guidelines for 

determining what constitutes a clearly 

erroneous transaction, but instead 

provides that ‘‘an Officer of the 

Corporation will review the transaction 

and determine whether it is clearly 

erroneous, with a view toward 

maintaining a fair and orderly market 

and the protection of investors and the 

public interest.’’ 7 The Exchange 

proposes adding certain numerical 

thresholds to the Rule that explicitly 


srobinson on DSKHWCL6B1PROD with NOTICES