Federal Register / Vol. 72, No. 8 / Friday, January 12, 2007 / Notices 1571 

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

2The Commission has modified the text of the 

summaries prepared by OCC. 

3CDS is the successor organization to Canadian 

Depository for Securities Ltd. The By-Law 

definition of CDS has been amended to reflect this 

organizational change. 

4OCC surveyed appointed clearing members that 

effect NSCC settlements for nonaffiliated clearing 

members as well as CDS to ascertain their views 

regarding the proposed change in the notice period 

for terminating such appointments. There were no 

objections to the proposed change. 

5Conforming changes have been made to the 

related appointment forms, which are attached as 

Exhibits 5A and 5B to the proposed rule filing. 

6 15 U.S.C. 78q–1. 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55047; File No. SR–OCC–

2006–21] 

Self-Regulatory Organizations; The 

Options Clearing Corporation; Notice 

of Filing of a Proposed Rule Change 

Relating to Membership Requirements 

January 5, 2007. 

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

Securities Exchange Act of 1934,1 notice 

is hereby given that on November 15, 

2006, The Options Clearing Corporation 

(‘‘OCC’’) filed with the Securities and 

Exchange Commission the proposed 

rule change as described in Items I, II 

and III below, which Items have been 

prepared primarily by OCC. 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 proposed rule change would 

modify certain OCC By-Laws and Rules 

relating to membership requirements. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

OCC 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. OCC has prepared 

summaries, set forth in Sections A, B, 

and C below, of the most significant 

aspects of such statements.2

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

The purpose of this rule change is to 

modify certain By-Laws and Rules 

relating to membership requirements in 

order to improve their effectiveness or 

otherwise clarify their meaning. 

1. Interpretation and Policy .03 

Interpretation and Policy .03 to 

Article V, Section 1, of OCC’s By-Laws 

currently requires applicants for 

membership to employ two key 

operations employees on a full-time 

basis. This requirement is intended to 

ensure that an applicant maintains 

sufficient staff to fulfill its obligations as 

a clearing member. However, several 

recent applicants for clearing 

membership have had difficulty meeting 

this requirement because their entire 

staff was employed by an affiliate of the 

applicant (i.e., a parent or related 

organization) rather than by the 

applicant itself. While these applicants 

entered into employee leasing 

arrangements in order to comply with 

OCC’s policy, OCC decided to 

reevaluate the policy in light of the fact 

that it had proved burdensome to a 

number of applicants. 

OCC understands that it is not 

uncommon for some entities of an 

affiliated corporate group to outsource 

certain or all functions to another entity 

of the corporate group and let the latter 

be the sole employer of the people who 

perform those functions. In situations of 

that nature, OCC has concluded that 

there is not the same reason to be 

concerned about whether the applicant 

will have adequate staffing as in cases 

where the applicant relies on an 

unaffiliated third party for staffing. OCC 

therefore wishes to modify its policy in 

order to provide greater flexibility to 

recognize this alternative employment 

structure. Accordingly, OCC proposes to 

amend Interpretation and Policy .03 to 

Article V, Section 1, to permit the 

Membership/Risk Committee 

(‘‘Committee’’) to waive the requirement 

that an applicant employ two key 

operations employees on a full-time 

basis if the daily operations of the 

applicant are conducted by staff 

employed on a full-time basis by an 

entity affiliated with such applicant. 

OCC believes that the Committee’s 

authority to waive such requirement is 

consistent with its existing authority to 

waive the requirement that an applicant 

employ at least one full-time person 

who is registered as a ‘‘Limited 

Principal—Financial and Operations’’ or 

comparable registration requirement, as 

applicable. 

2. Rule 309 

OCC proposes to amend Rule 309 to 

clarify that if an operationally capable 

clearing member proposes to become a 

managed clearing member (i.e., 

outsource certain of its obligations as a 

clearing member to another clearing 

member [‘‘managing clearing 

member’’]), the applicant must obtain 

prior approval from the Committee. 

Currently, Interpretation and Policy .04 

primarily contemplates the use of 

facilities management agreements by 

applicants for membership rather than 

existing clearing members. Nonetheless, 

OCC has always interpreted its By-Laws 

and Rules as requiring prior Committee 

review and approval of all facilities 

management agreements, including 

those proposed to be entered into by 

operationally capable clearing members. 

The proposed amendment to Rule 309 

makes this interpretation explicit. 

3. Rule 901 

OCC proposes to amend Rule 901 to 

provide that a clearing member’s 

appointment of another clearing 

member or CDS Clearing and Depository 

Services Inc. (‘‘CDS’’) 3, as applicable, 

for purposes of effecting settlements of 

exercised or matured cleared securities 

may not be terminated until after the 

30th calendar day following notice to 

OCC of such termination.4 Currently, 

clearing members are required to 

provide three business days notice of 

terminating such appointments. 

However, three business days might be 

insufficient for OCC to determine 

whether or not the clearing member has 

made appropriate alternative settlement 

arrangements. Accordingly, OCC 

proposes to change the notice period to 

be consistent with the notice period 

required to advise OCC of the 

termination of a facilities management 

agreement.5

OCC believes that the proposed 

change is consistent with Section 17A of 

the Act 6 because it amends certain rule 

provisions relating to membership 

requirements in order to improve their 

effectiveness or otherwise clarify their 

meaning and thereby promotes the 

prompt and accurate clearance and 

settlement of derivative contracts and 

transactions. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

OCC does not believe that the 

proposed rule change would impose any 

burden on competition. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received from 

Members, Participants or Others 

OCC has not solicited or received 

written comments with respect to the 

proposed rule change. 


rmajette on PROD1PC67 with NOTICES
1572 Federal Register / Vol. 72, No. 8 / Friday, January 12, 2007 / Notices 

7 17 CFR 200.30–3(a)(12). 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within thirty-five days of the date of 

publication of this notice in the Federal 

Register or within such longer period (i) 

As the Commission may designate up to 

ninety days of such date if it finds such 

longer period to be appropriate and 

publishes its reasons for so finding or 

(ii) as to which the self-regulatory 

organization consents, the Commission 

will: 

(A) by order approve such proposed 

rule change or 

(B) institute proceedings to determine 

whether the proposed rule change 

should be disapproved. 

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 

No. SR–OCC–2006–21 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 No. 

SR–OCC–2006–21. 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 filing also will 

be available for inspection and copying 

at OCC’s principal office and on OCC’s 

Web site at http://www.theocc.com/ 

publications/rules/proposed_changes/ 

proposed_changes.jsp. 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 submission 

should refer to File No. SR–OCC–2006–

21 and should be submitted on or before 

February 2, 2007. 

For the Commission by the Division of 

Market Regulation, pursuant to delegated 

authority.7

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–305 Filed 1–11–07; 8:45 am] 

BILLING CODE 8011–01–P 

SMALL BUSINESS ADMINISTRATION 

Interest Rates 

The Small Business Administration 

publishes an interest rate called the 

optional ‘‘peg’’ rate (13 CFR 120.214) on 

a quarterly basis. This rate is a weighted 

average cost of money to the 

government for maturities similar to the 

average SBA direct loan. This rate may 

be used as a base rate for guaranteed 

fluctuating interest rate SBA loans. This 

rate will be 4.875 (47⁄8) percent for the 

January-March quarter of FY 2007. 

Janet A. Tasker, 

Acting Associate Administrator for Financial 

Assistance. 

[FR Doc. E7–296 Filed 1–11–07; 8:45 am] 

BILLING CODE 8025–01–P 

DEPARTMENT OF TRANSPORTATION 

Office of the Secretary 

Aviation Proceedings, Agreements 

Filed the Week Ending December 29, 

2006 

The following Agreements were filed 

with the Department of Transportation 

under the Sections 412 and 414 of the 

Federal Aviation Act, as amended (49 

U.S.C. 1382 and 1384) and procedures 

governing proceedings to enforce these 

provisions. Answers may be filed within 

21 days after the filing of the 

application. 

Docket Number: OST–2006–26768. 

Date Filed: December 28, 2006. 

Parties: Members of the International 

Air Transport Association. 

Subject: 

Mail Vote 525—Resolution 010i, 

TC23/123 Europe-Japan Korea, 

Special Passenger Amending Resolution 

from Korea (Rep. of) to Europe. 

Intended effective date: 15 January 

2007. 

Barbara J. Hairston, 

Supervisory Docket Officer, Docket 

Operations, Alternate Federal Register 

Liaison. 

[FR Doc. E7–360 Filed 1–11–07; 8:45 am] 

BILLING CODE 4910–9X–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

Public Notice of Waiver of Aeronautical 

Land-Use Assurance—Hallock 

Municipal Airport, Hallock, MN 

AGENCY: Federal Aviation 

Administration, DOT. 

ACTION: Notice of intent of waiver with 

respect to land. 

SUMMARY: The Federal Aviation 

Administration (FAA) is considering a 

proposal to change a portion of the 

airport from aeronautical use to nonaeronautical use and to authorize the 

sale and/or conversion of the airport 

property. The proposal consists of two 

parcels of land containing a total of 4.18 

acres located on the north side of the 

airport along County Road 13. There are 

no impacts to the airport by allowing 

the airport to dispose of the property. 

These parcels were originally 

acquired under Grant No. FAAP–01 in 

1964. The parcels were acquired for a 

runway that has since been abandoned 

and replaced by a new primary runway 

in a different location. The land 

comprising these parcels is, therefore, 

no longer needed for aeronautical 

purposes and the airport owner wishes 

to sell at 4.0 acre parcel for an 

agricultural implement dealership and 

convert 0.18 acres of another parcel for 

use as a city wastewater lift station site. 

The income from the sale/conversion of 

these parcels will be reinvested in the 

airport for extending the useful life of 

the runway pavement. 

Approval does not consistute a 

commitment by the FAA to financially 

assist in the disposal of the subject 

airport property nor a determination of 

eligibility for grant-in-aid funding from 

the FAA. The disposition of proceeds 

from the disposal of the airport property 

will be in accordance with FAA’s Policy 

and Procedures Concerning the Use of 

Airport Revenue, published in the 

Federal Register on February 16, 1999. 

In accordance with section 47107(h) of 


rmajette on PROD1PC67 with NOTICES