Federal Register / Vol. 72, No. 44 / Wednesday, March 7, 2007 / Notices 10265 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(5). 

5See Securities Exchange Act Release No. 54709 

(November 3, 2006), 71 FR 65847 (November 9, 

2006) (SR–Amex–2006–72) (Order Approving a 

Proposed Rule Change and Amendment No 1 

Thereto, and Notice of Filing and Order Granting 

Accelerated Approval to Amendment No. 3, to 

Adopt New Rules to Implement on a Pilot Basis an 

Initial Version of AEMI, Its Proposed New Hybrid 

Market Trading Platform for Equity Products and 

Exchange Traded Funds). 

Determination: In conformity with 

sections 301 and 302 of the Trade 

Agreements Act, and in order to carry 

out U.S. obligations under the CAFTA–

DR, I hereby determine that: 

1. The Dominican Republic is a 

country, other than a major 

industrialized country, which, pursuant 

to the CAFTA–DR, will provide 

appropriate reciprocal competitive 

government procurement opportunities 

to United States products and services 

and suppliers of such products and 

services. In accordance with Section 

301(b)(3) of the Trade Agreements Act, 

the Dominican Republic is so 

designated for purposes of Section 

301(a) of the Trade Agreements Act. 

2. Accordingly, beginning on March 1, 

2007, with respect to eligible products 

(namely, those goods and services 

covered under the CAFTA–DR for 

procurement by the United States) of the 

Dominican Republic and suppliers of 

such products, the application of any 

law, regulation, procedure, or practice 

regarding government procurement that 

would, if applied to such products and 

suppliers, result in treatment less 

favorable than that accorded—

(A) To United States products and 

suppliers of such products; or 

(B) To eligible products of another foreign 

country or instrumentality which is a party 

to the Agreement on Government 

Procurement referred to in section 101(d)(17) 

of the Uruguay Round Agreements Act (19 

U.S.C. 3511(d)(17)) and suppliers of such 

products, shall be waived. This waiver shall 

be applied by all entities listed in the 

Schedule of the United States to Section A 

of Annex 9.1.2(b)(i) and in List A of Section 

C of Annex 9.1.2(b)(i) of the CAFTA–DR. 

3. The Trade Representative may 

modify or withdraw the designation in 

paragraph 1 and the waiver in paragraph 

2. 

Dated: February 28, 2007. 

Susan C. Schwab, 

United States Trade Representative. 

[FR Doc. E7–4020 Filed 3–6–07; 8:45 am] 

BILLING CODE 3190–W7–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55368; File No. SR–Amex–

2007–26] 

Self-Regulatory Organizations; 

American Stock Exchange LLC; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change To Revise 

the AEMI and AEMI–One Rules 

Relating to the Publishing of Manual 

Quotations and Re-Enabling Auto-Ex 

February 28, 2007. 

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 February 

27, 2007, the American Stock Exchange 

LLC (‘‘Amex’’ or ‘‘Exchange’’) filed with 

the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change as described in 

Items I, II, and III below, which Items 

have been substantially prepared by the 

Exchange. Amex has filed this proposal 

pursuant to Section 19(b)(3)(A) of the 

Act 3 and Rule 19b–4(f)(5) thereunder,4

which renders it effective upon filing 

with the Commission. 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 adopt 

changes to its AEMI and AEMI–One 

rules to address a situation that the 

Exchange has encountered in publishing 

its manual, non-firm quote following a 

tolerance breach that disables the 

Exchange’s automatic execution 

functionality (‘‘auto-ex’’). Under certain 

circumstances, displaying the price of 

the national best bid (‘‘NBB’’) or 

national best offer (‘‘NBO’’) (as the case 

may be) as part of such a non-firm quote 

(as provided in the current AEMI and 

AEMI–One rules) may result in the 

Exchange publishing a locked or crossed 

quotation. To avoid this situation, the 

Exchange is proposing to amend Rules 

128A–AEMI–One(g) and 128A–AEMI(g) 

to provide instead for using the price of 

the best bid, offer, or order (as the case 

may be) in AEMI, rather than the NBB 

or NBO, under these circumstances. 

Related changes to Rules 123–AEMI–

One(h) and 123–AEMI(h) would clarify 

that all such non-firm quotes 

disseminated through the AEMI 

platform are indicative only. In 

addition, the Exchange is proposing the 

addition of a phrase to each of Rules 

128A–AEMI–One(g) and 128A–AEMI(g) 

to clarify that the obligation of the 

Specialist is to ‘‘attempt to’’ pair off the 

remainder of an aggressing order that 

results in a locked or crossed AEMI 

Book to re-enable auto-ex prior to the 

expiration of a ten-second time period. 

The Exchange also is proposing an 

unrelated change to the text of Rules 

1A–AEMI–One(b) and 1A–AEMI(b) to 

clarify the applicability of crossreferences in the Exchange’s rules to a 

legacy rule that is no longer applicable 

due to having been superseded by a 

corresponding AEMI or AEMI–One rule. 

The text of the proposed rule change 

is available on the Amex’s Web site at 

http://www.amex.com, at the 

Exchange’s principal office, 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, 

Amex 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. Amex 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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange has recently adopted 

two sets of rules in connection with the 

operation of its new hybrid market 

trading platform for equity products and 

exchange-traded funds, designated as 

AEMISM (the ‘‘Auction and Electronic 

Market Integration’’ platform). The 

initial version of AEMI is referred to as 

‘‘AEMI–One’’ and is currently 

operational on a pilot basis 5 through the 

day prior to the final date set by the 

Commission for full operation of all 

automated trading centers that intend to 

qualify their quotations for tradeVerDate Aug<31>2005 18:25 Mar 06, 2007 Jkt 211001 PO 00000 Frm 00154 Fmt 4703 Sfmt 4703 E:\FR\FM\07MRN1.SGM 07MRN1

sroberts on PROD1PC70 with NOTICES
10266 Federal Register / Vol. 72, No. 44 / Wednesday, March 7, 2007 / Notices 

6 17 CFR 242.611. The Order Protection Rule 

requires trading centers to establish, maintain, and 

enforce written policies and procedures reasonably 

designed to prevent the execution of trades at prices 

inferior to protected quotations displayed by other 

trading centers, subject to certain exceptions. 

7The Trading Phase Date is currently established 

as March 5, 2007. 

8See Securities Exchange Act Release No. 54552 

(September 29, 2006), 71 FR 59546 (October 10, 

2006) (SR–Amex–2005–104) (Order Approving a 

Proposed Rule Change and Amendments No. 1, 2, 

3, 4, and 5 Thereto, and Notice of Filing and Order 

Granting Accelerated Approval to Amendment No. 

6, to Establish a New Hybrid Trading System 

Known as AEMI). 9 15 U.S.C. 78f(b). 

10 15 U.S.C. 78f(b)(5). 

11 15 U.S.C. 78s(b)(3)(A)(iii). 

12 17 CFR 240.19b–4(f)(5). 

through protection under Rule 611 6 of 

Regulation NMS (the latter date being 

referred to as the ‘‘Trading Phase 

Date’’).7 On the Trading Phase Date, the 

regular AEMI rules will become 

effective 8 and the AEMI–One rules will 

cease to be operative. The Exchange 

proposes to adopt the following change 

to the AEMI platform and to reflect that 

change in both the currently effective 

AEMI–One rule and the corresponding 

AEMI rule that will become effective on 

the Trading Phase Date. 

In the event that auto-ex is disabled 

through the breach of the Spread 

Tolerance or Momentum Tolerance or a 

gap trade (each a ‘‘Tolerance’’), as 

provided in Exchange Rules 128A–

AEMI–One(f) and 128A–AEMI(f), 

Exchange Rules 128A–AEMI–One(g) 

and 128A–AEMI(g) currently provide 

that the Amex Published Quote (‘‘APQ’’) 

will display a price on the same side 

corresponding to the aggressing order 

that is equal to the price of the NBB or 

NBO (as the case may be), with the 

contra side of the quote reflecting the 

best bid, offer, or order in AEMI (both 

sides being non-firm). Under certain 

circumstances, however, displaying the 

NBB or NBO as part of such a non-firm 

quote may result in the Exchange 

publishing a locked or crossed 

quotation. The problem is illustrated by 

the following hypothetical example. 

Assume that the NBB is 10.50 and the 

NBO is 10.00 (a crossed market). Further 

assume that the APQ is 9.80 x 10.00 and 

that an aggressing buy order takes out 

Amex offers on the AEMI Book and 

breaches a Tolerance at 10.25 (disabling 

auto-ex). The next offer in AEMI is 

10.30. Under the current AEMI–One and 

AEMI rules, Amex’s manual non-firm 

quote displayed by the AEMI platform 

would then be 10.50 x 10.30 (a crossed 

APQ). 

To avoid the foregoing situation, the 

Exchange is proposing to amend Rules 

128A–AEMI–One(g) and 128A–AEMI(g) 

to provide instead for using the price of 

the best bid, offer, or order (as the case 

may be) in AEMI, rather than the NBB 

or NBO, under these circumstances. 

Under the language of the proposed 

amendment, the Exchange’s manual, 

non-firm quote in the foregoing example 

would be 9.80 x 10.30. The proposed 

amendment also contains language 

providing that the size of the non-firm 

quote on the same side as the aggressing 

order would be equal to the remainder 

of the aggressing order. The proposed 

amendment further clarifies that the 

aggressing order itself would not be 

considered as the best bid, offer, or 

order in AEMI in the situation where 

the price of the NBB or NBO is not used 

as part of the non-firm APQ on the side 

of the aggressing order. Related changes 

to Rules 123–AEMI–One(h) and 123–

AEMI(h) would clarify that all such 

non-firm quotes disseminated through 

the AEMI platform are indicative only. 

In addition, the Exchange is 

proposing the addition of a phrase to 

each of Rules 128A–AEMI–One(g) and 

128A–AEMI(g) to clarify that the 

obligation of the Specialist is to 

‘‘attempt to’’ pair off the remainder of an 

aggressing order that results in a locked 

or crossed AEMI Book to re-enable autoex prior to the expiration of a tensecond time period. This proposed 

change is consistent with the extensive 

discussion in the same rule sections 

regarding what to do if auto-ex is not reenabled within ten seconds, and it 

avoids the implication that the 

Specialist has committed an enforceable 

rule violation if conditions are such that 

the Specialist is unable to complete the 

pair-off to re-enable auto-ex within the 

ten-second period. 

The Exchange also is proposing an 

unrelated change to the text of Rules 

1A–AEMI–One(b) and 1A–AEMI(b) to 

clarify the applicability of crossreferences in the Exchange’s rules to a 

legacy rule that is no longer applicable 

due to having been superseded by a 

corresponding AEMI or AEMI–One rule. 

Under the proposed change, any 

reference to such an inapplicable legacy 

rule shall be deemed to be a reference 

to the corresponding AEMI or AEMI–

One rule, as the case may be. 

The Exchange asserts that the 

proposal to effect the foregoing changes 

to the AEMI trading system does not 

significantly affect the protection of 

investors or the public interest, does not 

impose any significant burden on 

competition, and does not have the 

effect of limiting the access to or 

availability of the system. 

2. Statutory Basis 

The proposed rule change is designed 

to be consistent with Regulation NMS as 

well as consistent with Section 6(b) of 

the Act,9 in general, and furthers the 

objectives of Section 6(b)(5),10 in 

particular, in that it is designed to 

prevent fraudulent and manipulative 

acts and practices, 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. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The proposed rule change will impose 

no 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 

Because the proposed rule change 

does not: (1) Significantly affect the 

protection of investors or the public 

interest; (2) impose any significant 

burden on competition; and (3) have the 

effect of limiting the access to or 

availability of an existing order entry or 

trading system of the Exchange, the 

foregoing rule change has become 

effective immediately pursuant to 

Section 19(b)(3)(A)(iii) of the Act 11 and 

Rule 19b–4(f)(5) thereunder.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 the 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 at http://www.sec.gov/ 

rules/sro.shtml; or 

• Send an e-mail to rulecomments@sec.gov. Please include File 


sroberts on PROD1PC70 with NOTICES
Federal Register / Vol. 72, No. 44 / Wednesday, March 7, 2007 / Notices 10267 

13 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 53582 

(March 31, 2006), 71 FR 17510 (April 6, 2006) (SR–

Amex 2005–127) (approving Amex Rules 1500 et 

seq. and the listing and trading of Units of the 

United States Oil Fund, LP). 4As set forth in the section ‘‘Listing and Trading 

Rules,’’ the Exchange will require a minimum of 

100,000 Units to be outstanding at the start of 

trading. 5USNG is commodity pool that will issue Units 

that may be purchased and sold on the Exchange. 

No. SR–Amex–2007–26 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–Amex–2007–26. 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. Copies of such 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 No. 

SR–Amex–2007–26 and should be 

submitted on or before March 28, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.13

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–4039 Filed 3–6–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55372; File No. SR–Amex–

2006–112] 

Self-Regulatory Organizations; 

American Stock Exchange LLC; Notice 

of Filing of Proposed Rule Change as 

Modified by Amendment No. 1 Thereto 

Relating to the Listing and Trading of 

Units of the United States Natural Gas 

Fund, LP 

February 28, 2007. 

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

Securities Exchange Act of 1934 

(‘‘Act’’) 1 and Rule 19b–4 2 thereunder, 

notice is hereby given that on December 

1, 2006, the American Stock Exchange 

LLC (‘‘Amex’’ or ‘‘Exchange’’) filed with 

the Securities and Exchange 

Commission (‘‘Commission’’ or ‘‘SEC’’) 

the proposed rule change as described 

in Items I, II, and III below, which Items 

have been substantially prepared by the 

Exchange. On February 14, 2007, the 

Exchange submitted Amendment No. 1 

to the proposed rule change. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change, as amended, from interested 

persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to list and 

trade units (a ‘‘Unit’’ or collectively, the 

‘‘Units’’) of the United States Natural 

Gas Fund, LP (‘‘USNG’’ or the 

‘‘Partnership’’) pursuant to Amex Rules 

1500 et seq. 

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 

Amex 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. The 

Amex 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 Exchange proposes to list and 

trade the Units issued by USNG (under 

the symbol: ‘‘UNG’’) pursuant to 

Exchange Rules 1500 et seq. 3 Amex 

Rule 1500 provides for the listing of 

Partnership Units, which are defined as 

securities: (a) That are issued by a 

partnership that invests in any 

combination of futures contracts, 

options on futures contracts, forward 

contracts, commodities, and/or 

securities; and (b) that are issued and 

redeemed daily in specified aggregate 

amounts at net asset value. Pursuant to 

Commentary .01 to Rule 1502, the 

Exchange will file separate proposals 

under Section 19(b) of the Act before 

listing and trading separate and distinct 

Partnership Units designated on 

different underlying investments, 

commodities and/or assets. The 

Exchange submits that the Units will 

conform to the initial and continued 

listing criteria under Rule 1502.4

The Units represent ownership of a 

fractional undivided beneficial interest 

in the net assets of USNG.5 The net 

assets of USNG will consist of 

investments in futures contracts based 

on natural gas, crude oil, heating oil, 

gasoline, and other petroleum-based 

fuels traded on the New York 

Mercantile Exchange (‘‘NYMEX’’), 

Intercontinental Exchange (‘‘ICE 

Futures’’) or other U.S. and foreign 

exchanges (collectively, ‘‘Futures 

Contracts’’). USNG may also invest in 

other natural gas-related investments 

such as cash-settled options on Futures 

Contracts, forward contracts for natural 

gas, and over-the-counter (‘‘OTC’’) 

transactions that are based on the price 

of natural gas, oil and other petroleumbased fuels, Futures Contracts and 

indices based on the foregoing 

(collectively, ‘‘Other Natural Gas 

Related Investments’’). Futures 

Contracts and Other Natural Gas Related 

Investments collectively are referred to 

as ‘‘Natural Gas Interests.’’

USNG will invest in Natural Gas 

Interests to the fullest extent possible 

without being leveraged or unable to 

satisfy its current or potential margin or 

collateral obligations. In pursuing this 

objective, the primary focus of USNG’s 

investment manager, Victoria Bay Asset 

Management, LLC (‘‘Victoria Bay’’ or 

‘‘General Partner’’), will be the 

investment in Futures Contracts and the 

management of its investments in shortterm obligations of the United States 


sroberts on PROD1PC70 with NOTICES