Federal Register / Vol. 72, No. 115 / Friday, June 15, 2007 / Notices 33207 

18Under Section 4(c) of the CEA, the Commission 

need not resolve whether, as CME argues in its 

comment letter, these products are based on 

commodities and not securities, or, as CBOE argues 

in its comment letter, these products are securities 

subject to the securities laws. Nor need the 

Commission determine, as CME urges, whether the 

products are properly characterized as options. 

Finally, the Commission notes that its references to 

the novelty of the issues raised by these products 

refer to issues under the CEA and were not 

intended to be applicable in any matter relating to 

patent or intellectual property law. 

19 44 U.S.C. 3507(d). 

20 7 U.S.C. 19(a). 

persons that the Commission 

determines to be appropriate in light of 

* * * the applicability of appropriate 

regulatory protections.’’ (Emphasis 

added.) These products will be traded 

on a regulated exchange. CBOE, OCC, 

and their members who will 

intermediate these transactions, are 

subject to extensive and detailed 

oversight by the SEC and, in the case of 

the intermediaries, the securities selfregulatory organizations. It should be 

noted that CME has listed or will list 

comparable products and has not 

limited access to its markets to specified 

categories of persons. In light of where 

the products will be traded, the 

regulatory protections available under 

the securities laws, and the goal of 

promoting fair competition, these 

products will be traded by appropriate 

persons. 

Third, the exemption would not have 

a material adverse effect on the ability 

of the Commission or any designated 

contract market to carry out their 

regulatory responsibilities under the 

CEA. There is no reason to believe that 

granting an exemption here would 

interfere with the Commission’s or a 

designated contract market’s ability to 

oversee the trading of similar products 

on a designated contract market or 

otherwise to carry out their duties. None 

of the comment letters received 

addressed this issue.18

Therefore, upon due consideration, 

pursuant to its authority under Section 

4(c) of the CEA, the Commission hereby 

issues this Order and exempts the 

trading and clearing of CDOs and 

CDBOs to be listed and traded on CBOE 

and cleared through OCC as a securities 

clearing agency from the CEA. This 

Order is contingent upon the approval 

by the SEC, pursuant to Section 19(b) of 

the 1934 Act, of CBOE and OCC rules 

to permit the listing and trading of 

CDOs and CDBOs on CBOE. This Order 

is subject to termination or revision, on 

a prospective basis, if the Commission 

determines upon further information 

that this exemption is not consistent 

with the public interest. If the 

Commission believes such exemption 

becomes detrimental to the public 

interest, the Commission may revoke 

this Order on its own motion. 

V. Related Matters 

A. Paperwork Reduction Act 

The Paperwork Reduction Act of 1995 

(‘‘PRA’’) 19 imposes certain 

requirements on federal agencies 

(including the Commission) in 

connection with their conducting or 

sponsoring any collection of 

information as defined by the PRA. The 

exemptive order would not require a 

new collection of information from any 

entities that would be subject to the 

order. 

B. Cost-Benefit Analysis 

Section 15(a) of the CEA, as amended 

by Section 119 of the Commodity 

Futures Modernization Act of 2000 

(‘‘CFMA’’),20 requires the Commission 

to consider the costs and benefits of its 

action before issuing an order under the 

CEA. By its terms, Section 15(a) as 

amended does not require the 

Commission to quantify the costs and 

benefits of an order or to determine 

whether the benefits of the order 

outweigh its costs. Rather, Section 15(a) 

simply requires the Commission to 

‘‘consider the costs and benefits’’ of its 

action. 

Section 15(a) of the CEA further 

specifies that costs and benefits shall be 

evaluated in light of five broad areas of 

market and public concern: Protection 

of market participants and the public; 

efficiency, competitiveness, and 

financial integrity of futures markets; 

price discovery; sound risk management 

practices; and other public interest 

considerations. Accordingly, the 

Commission could in its discretion give 

greater weight to any one of the five 

enumerated areas and could in its 

discretion determine that, 

notwithstanding its costs, a particular 

order was necessary or appropriate to 

protect the public interest or to 

effectuate any of the provisions or to 

accomplish any of the purposes of the 

CEA. 

The exemptive order issued today is 

expected to facilitate market 

competition. The Commission has 

considered the costs and benefits of the 

order in light of the specific provisions 

of Section 15(a) of the CEA, as follows: 

1. Protection of market participants 

and the public. Protections for market 

participants and the public exist in that 

CBOE, OCC and their members who will 

intermediate CDOs and CDBOs are 

subject to extensive oversight by the 

SEC and, in the case of intermediaries, 

securities self-regulatory organizations. 

2. Efficiency, competition, and 

financial integrity. The exemptive order 

may enhance market efficiency and 

competition since it could encourage 

potential trading of CDOs and CDBOs 

on markets other than designated 

contract markets. Financial integrity 

will not be impaired since the CDOs and 

CDBOs will be cleared by OCC, a DCO 

and SEC-registered clearing agency, and 

intermediated by SEC-registered brokerdealers. 

3. Price discovery. Price discovery 

may be enhanced through market 

competition. 

4. Sound risk management practices. 

OCC has described appropriate risk 

management practices that it will follow 

in connection with the clearing of CDOs 

and CDBOs. 

5. Other public interest 

considerations. The exemptive order 

may encourage development of credit 

derivative products through market 

competition without unnecessary 

regulatory burden. 

The Commission requested comment 

on its application of these factors in the 

proposing release. No comments were 

received. 

After considering these factors, the 

Commission has determined to issue 

this Order. 

* * * * * 

Issued in Washington, DC, on June 5, 2007 

by the Commission. 

Eileen A. Donovan, 

Acting Secretary of the Commission. 

[FR Doc. 07–2878 Filed 6–8–07; 8:45 am] 

Editorial Note: FR Doc. 07–2878 originally 

published at pages 32079–32081 in the issue 

of Monday, June 11, 2007. Due to numerous 

errors, the document is being reprinted in its 

entirety. 

[FR Doc. R7–2878 Filed 6–14–07; 8:45 am] 

BILLING CODE 1505–01–D 

DEPARTMENT OF DEFENSE 

Office of the Secretary 

[Docket No. DOD 2007–OS–0062–] 

Proposed Collection; Comment 

Request 

AGENCY: Defense Finance and 

Accounting Service, DoD. 

ACTION: Notice. 

SUMMARY: In compliance with Section 

3506(c)(2)(A) of the Paperwork 

Reduction Act of 1995, the Defense 

Finance and Accounting Service 

announces the proposed extension of a 


jlentini on PROD1PC65 with NOTICES
33208 Federal Register / Vol. 72, No. 115 / Friday, June 15, 2007 / Notices 

public information collection and seeks 

public comment on the provisions 

thereof. Comments are invited on : (a) 

Whether the proposed collection of 

information is necessary for the proper 

performance of the functions of the 

agency, including whether the 

information shall have practical utility; 

(b) the accuracy of the agency’s estimate 

of the burden of the proposed 

information collection; (c) ways to 

enhance the quality, utility and clarity 

of the information to be collected; and 

(d) ways to minimize the burden of the 

information collection on respondents, 

including through the use of automated 

collection techniques or other forms of 

information technology. 

DATES: Consideration will be given to all 

comments received by August 14, 2007. 

ADDRESSES: You may submit comments, 

identified by docket number and title, 

by any of the following methods: 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• Mail: Federal Docket Management 

System Office, 1160 Defense Pentagon, 

Washington, DC 20301–1160. 

Instructions: All submissions received 

must include the agency name, docket 

number and title for this Federal 

Register document. The general policy 

for comments and other submissions 

from members of the public is to make 

these submissions available for public 

viewing on the Internet at http:// 

www.regulations.gov as they are 

received without change, including any 

personal identifiers or contact 

information. 

FOR FURTHER INFORMATION CONTACT: To 

request more information on this 

proposed information collection or to 

obtain a copy of the proposal and 

associated collection instruments, 

please write to the Military Pay, 

Standards and Compliance, Defense 

Finance and Accounting Service, DFASJJFMB/CL, ATTN: Ms. Laurie Eldridge, 

1240 East 9th Street, Room 1781, 

Cleveland, Ohio 44199, or call Ms. 

Laurie Eldridge at (216) 204–3631. 

Title, Associated Form, and OMB 

Number: Dependency Statements; 

Parent (DD Form 137–3), Child Born 

Out of Wedlock (DD Form 137–4), 

Incapacitated Child Over Age 21 (DD 

Form 137–5), Full Time Student 21–22 

Years of Age (DD Form 137–6), and 

Ward of the Court (DD Form 137–7); 

OMB Number 0730–0014. 

Needs and Uses: This information 

collection is used to certify dependency 

or obtain information to determine 

entitlement to basic allowance for 

housing (BAH) with dependent rate, 

travel allowance, or Uniformed Services 

Identification and Privilege Card. 

Information regarding a parent, a child 

born out-of-wedlock, an incapacitated 

child over age 21, a student age 21–22, 

or a ward of a court is provided by the 

military member or by another 

individual who may be a member of the 

public. Pursuant to 37 U.S.C. 401, 403, 

406, and 10 U.S.C. 1072 and 1076, the 

member must provide more than one 

half of the claimed dependent’s monthly 

expenses. DoD Financial Management 

Regulation 7000.14–R, Vol. 7A, defines 

dependency and directs that 

dependency be proven. Dependency 

claim examiners use the information 

from these forms to determine the 

degree of benefits. The requirement to 

provide the information decreases the 

possibility of monetary allowances 

being approved on behalf of ineligible 

dependents. 

Affected Public: Individuals or 

households. 

Annual Burden Hours: 24,300 hours. 

Number of Respondents: 19,440. 

Responses per Respondent: 1. 

Average Burden per Response: 1.25 

hours. 

Frequency: On occasion. 

SUPPLEMENTARY INFORMATION: 

Summary of Information Collection 

When military members apply for 

benefits, they must complete the form 

which corresponds to the particular 

dependent situation (a parent, a child 

born out-of-wedlock, an incapacitated 

child over age 21, a student age 21–22, 

or a ward of a court). While members 

usually complete these forms, they can 

also be completed by others considered 

members of the public. Dependency 

claim examiners use the information 

from these forms to determine the 

degree of benefits. Without this 

collection of information, proof of an 

entitlement to a benefit would not exist. 

The requirement to complete these 

forms helps alleviate the opportunity for 

fraud, waste, and abuse of dependent 

benefits. 

Dated: June 5, 2007 

Patricia L. Toppings, 

Alternate OSD Federal Register Liaison 

Officer, Department of Defense. 

[FR Doc. 07–2951 Filed 06–14–07; 8:45 am] 

BILLING CODE 5001–06–M 

DEPARTMENT OF DEFENSE 

Office of the Secretary 

TRICARE Over-the-Counter Drug 

Demonstration Project 

AGENCY: Department of Defense. 

ACTION: Notice of a TRICARE over-thecounter drug demonstration project. 

SUMMARY: This notice is to advise 

interested parties of a demonstration 

project in which the Department of 

Defense will evaluate allowing selected 

over-the-counter (OTC) drugs to be 

included on the TRICARE uniform 

formulary. The Secretary will evaluate 

the costs/benefits and beneficiary 

satisfaction of providing OTC drugs 

under the pharmacy benefits program 

when the selected OTC drugs are 

determined to be clinically effective. 

The demonstration project will be 

available for beneficiaries within the 

United States, Puerto Rico, Virgin 

Islands, and Guam. 

DATES: Effective Date: This 

demonstration project is mandated by 

Section 705 of the John Warner National 

Defense Authorization Act for 2007, 

with an implementation deadline of 

May 1, 2007. Therefore, the Department 

of Defense is waiving the regulation (32 

CFR 199.1(o)) requiring at least 30 days 

notice of a demonstration project prior 

to its effective date. Waiver of the notice 

period is deemed necessary to avoid 

delay in implementing program 

changes. 

FOR FURTHER INFORMATION CONTACT: MAJ 

Travis Watson, TRICARE Management 

Activity, Pharmaceutical Operations 

Directorate, telephone (703) 681–2890. 

SUPPLEMENTARY INFORMATION: 

A. Background 

Section 705 of the John Warner 

National Defense Authorization Act for 

2007 (hereafter Section 705) directed the 

Department of Defense to conduct a 

demonstration project to allow certain 

over-the-counter medications to be 

included on the uniform formulary 

under section 1074g of title 10, United 

States Code. Section 705 requires that 

OTC drugs provided under this 

demonstration project be made available 

through at least two of the following 

dispensing venues—military treatment 

facilities, TRICARE retail network 

pharmacies, or the TRICARE mail order 

pharmacy. The Department intends to 

initially offer the selected OTC drugs 

through the TRICARE mail order 

pharmacy and a limited number of 

designated military treatment facilities 

(no less than five per TRICARE region). 

Not all OTC drugs will be covered under 

this demonstration project. An OTC 

drug shall be made available to a 

beneficiary through the demonstration 

project if (a) the beneficiary has a 

prescription for a drug requiring a 

prescription; (b) the Pharmacy & 

Therapeutics Committee has determined 


jlentini on PROD1PC65 with NOTICES