Federal Register / Vol. 72, No. 56 / Friday, March 23, 2007 / Notices 13837 

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

2 17 CFR 240.19b–4. 

other insurance benefits held by 

Contract owners of the Contracts. All 

expenses incurred in connection with 

the proposed substitutions, including 

brokerage, legal, accounting, and other 

fees and expenses, will be paid by the 

Insurance Companies. In addition, the 

proposed substitutions will not impose 

any tax liability on Contract owners. 

The proposed substitutions will not 

cause the Contract fees and charges 

currently being paid by existing 

Contract owners to be greater after the 

proposed substitutions than before the 

proposed substitutions. No fees will be 

charged on the transfers made at the 

time of the proposed substitutions 

because the proposed substitutions will 

not be treated as a transfer for the 

purpose of assessing transfer charges or 

for determining the number of 

remaining permissible transfers in a 

Contract year. 

9. In addition to the prospectus 

supplements distributed to owners of 

Contracts, within five business days 

after the proposed substitutions, 

Contract owners will be sent a written 

notice informing them that the 

substitutions were carried out and that 

they may transfer all Contract value or 

cash value under a Contract invested in 

any one of the Subaccounts on the date 

of the notice to another Subaccount 

available under their Contract at no cost 

and without regard to the usual limit on 

the frequency of transfers from the 

variable account options to the fixed 

account options. The notice will also 

reiterate that (other than with respect to 

‘‘market timing’’ activity) the Insurance 

Company will not exercise any rights 

reserved by it under the Contracts to 

impose additional restrictions on 

transfers or to impose any charges on 

transfers until at least 30 days after the 

proposed substitutions. The Insurance 

Companies will also send each Contract 

owner current prospectuses for the 

Replacement Funds involved. 

10. Each Insurance Company may also 

seek approval of the proposed 

substitutions from any state insurance 

regulators whose approval may be 

necessary or appropriate. 

11. For a two year period following 

the date of the Substitutions, the 

Applicants agree that the total operating 

expenses of each Replacement Fund 

(taking into account any expense waiver 

or reimbursement) will not exceed on an 

annualized basis the net expense level 

of the corresponding Existing Fund for 

the 2005 fiscal year. 

12. The Applicants agree that the 

Insurance Companies will not increase 

total separate account charges (net of 

any reimbursements or waivers) for any 

outstanding Contracts involved in the 

proposed substitution on the date of the 

substitutions for a period of two years 

from the date of the substitutions. 

Applicants and the Insurance 

Companies may, however, offer 

additional benefits through one or more 

Benefit Riders to owners of such 

Contracts during such two year period 

and impose additional separate account 

charges related to the purchase of any 

such additional benefits. 

13. Applicants represent that none of 

the Replacement Funds was established 

for the purpose of effecting the 

substitutions. 

Conclusion 

For the reasons and upon the facts set 

forth above, Applicants submit that the 

requested order meets the standards set 

forth in Section 26(c). Applicants 

request an order of the Commission, 

pursuant to Section 26(c) of the Act, 

approving the Substitutions. 

For the Commission, by the Division of 

Investment Management, pursuant to 

delegated authority. 

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–5315 Filed 3–22–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Sunshine Act Meeting 

Notice is hereby given, pursuant to 

the provisions of the Government in the 

Sunshine Act, Public Law 94–409, that 

the Securities and Exchange 

Commission will hold the following 

meeting during the week of March 26, 

2007: 

A Closed Meeting will be held on 

Wednesday, March 28, 2007 at 2 p.m. 

Commissioners, Counsels to the 

Commissioners, the Secretary to the 

Commission, and recording secretaries 

will attend the Closed Meeting. Certain 

staff members who have an interest in 

the matters may also be present. 

The General Counsel of the 

Commission, or his designee, has 

certified that, in his opinion, one or 

more of the exemptions set forth in 5 

U.S.C. 552b(c) (5), (7), 9(B) and (10) and 

17 CFR 200.402(a) (5), (7), 9(ii) and (10) 

permit consideration of the scheduled 

matters at the Closed Meeting. 

Commissioner Nazareth, as duty 

officer, voted to consider the items 

listed for the closed meeting in a closed 

session. 

The subject matter of the Closed 

Meeting scheduled for Wednesday, 

March 28, 2007 will be: 

Formal orders of investigation; 

Institution and settlement of injunctive 

actions; 

Institution and settlement of 

administrative proceedings of an 

enforcement nature; 

Resolution of litigation claims; and 

Other matters relating to enforcement 

proceedings. 

At times, changes in Commission 

priorities require alterations in the 

scheduling of meeting items. 

For further information and to 

ascertain what, if any, matters have been 

added, deleted or postponed, please 

contact: 

The Office of the Secretary at (202) 

551–5400. 

Dated: March 21, 2007. 

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–5429 Filed 3–22–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55486; File No. SR–BSE–

2007–12] 

Self-Regulatory Organizations; Boston 

Stock Exchange, Inc.; Notice of Filing 

and Order Granting Accelerated 

Approval of Proposed Rule Change To 

Apply Non-BeX Executed Trade Fee 

Retroactively 

March 16, 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 March 2, 

2007, the Boston Stock Exchange, Inc. 

(‘‘BSE’’ 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 

substantially prepared by the Exchange. 

The Commission is publishing this 

notice to solicit comments on the 

proposed rule change from interested 

persons and to approve the proposed 

rule change on an accelerated basis. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The BSE proposes to make SR–BSE–

2007–11, a rule filing amending the 

Boston Equities Exchange (‘‘BeX’’) fee 

schedule to include a transaction fee to 

be charged to BSE Members who request 

a BeX Purchase & Sale Blotter reflecting 

the transaction information related to 

the execution of a single order, part of 


sroberts on PROD1PC70 with NOTICES
13838 Federal Register / Vol. 72, No. 56 / Friday, March 23, 2007 / Notices 

3See Securities Exchange Act Release No. 54795 

(November 20, 2006), 71 FR 68850 (November 28, 

2006) (Notice of Filing and Immediate Effectiveness 

of SR–BSE–2006–44). 4See Securities Exchange Act Release No. 55450 

(March 13, 2007) (Notice of Filing and Immediate 

Effectiveness of SR–BSE–2007–11). 

5 Id. 

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

7 15 U.S.C. 78f(b)(4). 

which was executed on Boston Equities 

Exchange (‘‘BeX’’) and part of which 

was executed at an away Trading 

Center, retroactively effective for the 

time period February 1, 2007 through 

March 2, 2007. The text of the proposed 

rule change is available on the 

Exchange’s Web site (http:// 

www.bostonstock.com) and from 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 

Exchange 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 III 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 

On November 20, 2006, the BSE filed 

SR–BSE–2006–44, a proposed rule 

change that amended the existing BSE 

fee schedule and established a fee 

schedule for the BeX, a facility of the 

Exchange.3 This proposed rule change, 

among other things, deleted all 

Transaction Fees, Electronic File Access 

and Processing Fees, and Floor 

Operation Fees from the BSE fee 

schedule. The Transaction Fees and 

Electronic File Access and Processing 

Fees that were deleted from the BSE fee 

schedule were transferred to the BeX fee 

schedule. 

On March 2, 2007, the BSE filed SR–

BSE–2007–11, a proposed rule change 

amending the BeX fee schedule to 

include a transaction fee that was 

deleted from the BSE fee schedule but 

not transferred to the BeX fee schedule 

as a part of BSE–2006–44.4 Specifically, 

the BSE fee schedule contained a 

transaction fee titled ‘‘Floor Brokered 

non-BSE executions.’’ The fee for Floor 

Brokered non-BSE executions was 

$.0005, or $.05 per 100 shares. BSE 

Members were charged the Floor 

Brokered non-BSE execution fee when 

the Member requested that the 

information related to the execution of 

a single order, only a part of which had 

been executed on the BSE with the 

remaining portion executed at an away 

Trading Center, be reflected on a BSE 

Purchase & Sale Blotter rather than 

having only the portion executed at the 

BSE reflected on the BSE Purchase & 

Sale Blotter. In order to include the 

information related to the portion of an 

order executed at a Trading Center other 

than the BSE on a BSE Purchase & Sale 

Blotter, in other words, in order to 

consolidate the transaction information 

on single report, the BSE performed the 

necessary back office operations on 

behalf of the Member so the transaction 

information, including the information 

related to the portion of the order 

executed at an away Trading Center, 

would appear on a BSE Purchase & Sale 

Blotter. 

In SR–BSE–2007–11 the Exchange 

proposed charging that same fee, $.05 

per 100 shares, for performing that same 

service, on behalf of BSE members, 

including BeX EAMs, who request a 

BeX Purchase & Sale Blotter reflecting 

the transaction information related to 

the execution of a single order, part of 

which was executed on BeX and part of 

which was executed at an away Trading 

Center. The fee would be titled ‘‘NonBeX executed trades’’ and would appear 

on the BeX fee schedule.5

The purpose of the instant filing is to 

make the Non-BeX executed trade fee 

retroactively effective for the time 

period February 1, 2007 through March 

2, 2007. 

2. Statutory Basis 

The Exchange believes that the 

proposal is consistent with the 

requirements of Section 6(b) of the Act,6

in general, and furthers the objectives of 

Section 6(b)(4) of the Act,7 in particular, 

in that it is designed to provide for the 

equitable allocation of reasonable dues, 

fees, and other charges among Exchange 

Members and issuers and other persons 

using Exchange facilities. 

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 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 

The Exchange has neither solicited 

nor received comments on the proposed 

rule change. 

III. 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 

rule-comments@sec.gov. Please include 

File Number SR–BSE–2007–12 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–BSE–2007–12. 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 at 

the Commission’s Public Reference 

Room. Copies of such filing will also 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 with to make available publicly. All 

submissions should refer to the file 

number in the caption above and should 

be submitted on or before April 13, 

2007. 


sroberts on PROD1PC70 with NOTICES
Federal Register / Vol. 72, No. 56 / Friday, March 23, 2007 / Notices 13839 

8 In approving this proposal, the Commission has 

considered its impact on efficiency, competition, 

and capital formation. 15 U.S.C. 78c(f). 

9 15 U.S.C. 78f(b)(4). 

10According to the Exchange, other information 

included on the BSE Purchase & Sale Blotter in PDF 

format is provided to members free of charge. 

11See note 3, supra. 

12See note 4, supra. 

13 15 U.S.C. 78s(b)(2). 

14 15 U.S.C. 78s(b)(2). 

15 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(6). 

5See Rule 24.2(d)(4) (for initial inclusion, 

requiring average daily trading of at least 45,500 

shares in each of the preceding six months); Rule 

24.2(e)(4) (for continued inclusion, requiring 

average daily trading of at least 22,750 shares in 

each of the preceding six months); and Rule 

24.2(e)(11) (for continued inclusion, requiring 

monthly trading volume of least 500,000 shares in 

each of the last six months). 

6See Telephone conference among Richard 

Holley III and Kristie Diemer, Special Counsels, 

Division of Market Regulation, Commission, and 

Jennifer Klebes, Senior Attorney, CBOE, on March 

15, 2007 (in which CBOE clarified, among other 

things, that the exception it seeks for the 

maintenance trading volume requirements applies 

Continued 

IV. Commission Findings and Order 

Granting Accelerated Approval of 

Proposed Rule Change 

The Commission finds that the 

proposed rule change is consistent with 

the requirements of the Act and the 

rules and regulations thereunder 

applicable to a national securities 

exchange.8 In particular, the 

Commission finds that proposed rule 

change is consistent with Section 6(b)(4) 

of the Act, which requires that the rules 

of the Exchange be designed to provide 

for the equitable allocation of reasonable 

dues, fees, and other charges among its 

members and issuers and other persons 

using its facilities.9 The Commission 

believes that allowing the Exchange to 

charge the Non-BeX executed trade fee 

retroactively for the time period 

February 1, 2007 through March 2, 

2007, is appropriate because this fee 

would be charged only to those 

members who affirmatively request that 

the Exchange include information on 

the BSE Purchase & Sale Blotter with 

respect to those executions resulting 

from a portion of an order sent to BeX 

being routed to an away Trading 

Center.10 Further, the Commission notes 

that the same fee for substantively the 

same service had been charged to BSE 

members prior to the changes made to 

the fee schedule in SR–BSE–2006–44,11

and the fee was reinstated pursuant to 

SR–BSE–2007–11, beginning March 2, 

2007.12

Accordingly, the Commission finds 

good cause pursuant to Section 19(b)(2) 

of the Act 13 for approving the proposed 

rule change prior to the thirtieth day 

after publication of the proposed rule 

change in the Federal Register. As 

noted above, the Commission believes 

that the Non-BeX executed trade fee is 

substantively similar to the Floor 

Brokered Execution fee, which was 

previously charged to BSE members for 

providing substantially the same service 

for which the Non-BeX executed trade 

fee would be charged to BSE members, 

and therefore no novel regulatory issues 

related to this fee are present. 

V. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,14 that the 

proposed rule change (SR–BSE–2007–

12), is hereby approved on an 

accelerated basis. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.15

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–5309 Filed 3–22–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55485; File No. SR–CBOE–

2007–28] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change for Early Inclusion of 

NYMEX Holdings, Inc. to the CBOE 

Exchange Index 

March 16, 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 March 13, 

2007, the Chicago Board Options 

Exchange, Incorporated (‘‘CBOE’’ 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 

substantially prepared by CBOE. The 

Exchange filed the proposal as a ‘‘noncontroversial’’ proposed rule change 

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

the Act 3 and Rule 19b–4(f)(6) 

thereunder,4 which renders the proposal 

effective upon receipt of this filing by 

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 is requesting approval 

to add NYMEX Holdings, Inc. (‘‘NMX’’) 

to the CBOE Exchange Index (‘‘EXQ’’) 

on March 19, 2007. The text of the rule 

proposal is available on the Exchange’s 

Web site (http://www.cboe.org/legal), at 

the Exchange’s Office of the Secretary, 

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, 

CBOE 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. CBOE 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 this rule proposal is 

to obtain the Commission’s approval to 

add NMX to the EXQ, which is a Micro 

Narrow-Based security index. Under 

CBOE’s initial and maintenance 

standards for Micro Narrow-Based 

security indexes, a security must have 

achieved certain daily and monthly 

trading volume levels in each of the 

preceding six months before it is eligible 

for initial and/or continued inclusion in 

an index.5 Therefore, under the current 

Exchange rules, NMX must trade for at 

least six months before the Exchange 

may add it to the EXQ. 

As of the date of this filing, NMX has 

not been trading for the past six months. 

The Exchange, however, is requesting 

Commission approval to add NMX to 

the EXQ at this time. Specifically, the 

Exchange would like to add NMX to the 

EXQ on March 19, 2007, which is after 

the March expiration (March 17, 2007). 

The Exchange believes that this is an 

ideal time to add NMX to the EXQ, 

since the EXQ will be rebalanced at that 

time. In addition, the Exchange requests 

that the Commission permit NMX to 

meet the maintenance trading volume 

requirements in the aggregate during the 

first six months after trading in order to 

qualify for its inclusion in the EXQ.6


sroberts on PROD1PC70 with NOTICES