11418 Federal Register / Vol. 72, No. 48 / Tuesday, March 13, 2007 / Notices 

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

12 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule 

19b–4(f)(6)(iii) requires that a self-regulatory 

organization submit to the Commission written 

notice of its intent to file the proposed rule change, 

along with a brief description and text of the 

proposed rule change, at least five business days 

prior to the date of filing of the proposed rule 

change, or such shorter time as designated by the 

Commission. NASD has satisfied the five-day prefiling requirement. 

13For the purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

and capital formation. See 15 U.S.C. 78c(f). 14 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)(ii). 

4 17 CFR 240.19b–4(f)(2). 

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 

Written comments were neither 

solicited nor received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing rule change 

does not: (1) Significantly affect the 

protection of investors or the public 

interest; (2) impose any significant 

burden on competition; and (3) become 

operative for 30 days from the date of 

this filing, or such shorter time as the 

Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 11 and Rule 19b–

4(f)(6) thereunder.12

NASD has requested that the 

Commission waive the 30-day operative 

delay in this case. The Commission 

believes that waiving the 30-day 

operative delay is consistent with the 

protection of investors and the public 

interest because such waiver will allow 

the amendments to Rules 4632(f) and 

6130(e) to be implemented on the 

Regulation NMS Trading Phase Date. 

For this reason, the Commission 

designates the proposed rule change to 

be operative upon filing with the 

Commission.13

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 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 Comment 

• 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 

Number SR–NASD–2007–020 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 

Number SR–NASD–2007–020. 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 the filing also will be 

available for inspection and copying at 

the principal office of NASD. 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 

Number SR-NASD–2007–020 and 

should be submitted on or before April 

3, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.14

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–4508 Filed 3–12–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55414; File No. SR–

NYSEArca–2007–25] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change and Amendment No. 1 

Thereto Amending Its Schedule of 

Fees and Charges in Order To Extend 

a Pilot Program for Option Strategy 

Executions for a Period of One Year 

March 7, 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 

28, 2007, NYSE Arca, Inc. (‘‘NYSE 

Arca’’ 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. 

On March 5, 2007, the Exchange 

submitted Amendment No. 1 to the 

proposed rule change. NYSE Arca has 

designated this proposal as one 

establishing or changing a due, fee, or 

other charge imposed by a selfregulatory organization pursuant to 

Section 19(b)(3)(A)(ii) of the Act 3 and 

Rule 19b–4(f)(2) thereunder,4 which 

renders the proposal effective upon 

filing with the Commission. 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 

NYSE Arca is proposing to amend its 

Schedule of Fees and Charges in order 

to extend the pilot program that applies 

to Option Strategy Executions until 

March 1, 2008. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

(http://www.nyse.com/regulation/rules/ 

1160561784294.html), 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, the 

Exchange included statements 

concerning the purpose of, and basis for, 


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Federal Register / Vol. 72, No. 48 / Tuesday, March 13, 2007 / Notices 11419 

5Reversals and conversions are transactions that 

employ calls, puts, and the underlying stock to lock 

in a nearly risk free profit. Reversals are established 

by combining a short stock position with a short put 

and a long call position that shares the same strike 

and expiration. Conversions employ long positions 

in the underlying stock that accompany long puts 

and short calls sharing the same strike and 

expiration. 

6 Dividend spreads are trades involving deep in 

the money options that exploit pricing differences 

arising around the time a stock goes ex-dividend. 

7A box spread is a strategy that synthesizes long 

and short stock positions to create a profit. 

Specifically, a long call and short put at one strike 

is combined with a short call and long put at a 

different strike to create synthetic long and 

synthetic short stock positions, respectively. 

8A short stock interest spread is a spread that 

uses two deep in the money put options of the same 

class followed by the exercise of the resulting long 

position in order to establish a short stock interest 

arbitrage position. 

9A merger spread is a transaction executed 

pursuant to a strategy involving the simultaneous 

purchase and sale of options of the same class and 

expiration date, but with different strike prices 

followed by the exercise of the resulting long option 

position. 

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

11 15 U.S.C. 78f(b)(4). 

12 15 U.S.C. 78s(b)(3)(A)(ii). 

13 17 CFR 19b–4(f)(2). 14 17 CFR 200.30–3(a)(12). 

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. 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 

The purpose of this proposed rule 

change is to extend the Pilot Program 

that applies to Option Strategy 

Executions (the ‘‘Pilot Program’’) until 

March 1, 2008. The transactions 

included as part of the Pilot Program 

include reversals and conversions,5

dividend spreads,6 box spreads,7 short 

stock interest spreads,8 and merger 

spreads.9 Because the referenced 

Options Strategy Transactions are 

generally executed by professionals 

whose profit margins are generally 

narrow, the Pilot Program caps the 

transaction fees associated with such 

executions at $750 per strategy 

execution that are executed on the same 

trading day in the same option class. In 

addition, there is also a monthly cap of 

$25,000 per initiating firm for all 

strategy executions. The Exchange 

believes that by keeping fees low, the 

Exchange is able to attract liquidity by 

accommodating these transactions. 

Extending the Pilot Program until March 

1, 2008 will allow the Exchange to keep 

these fees low and thus continue to 

attract liquidity. 

OTP Holders and OTP Firms who 

wish to benefit from the fee cap will be 

required to submit to the Exchange 

forms with supporting documentation 

(e.g., clearing firm transaction data) to 

qualify for the cap. 

2. Statutory Basis 

The proposal is consistent with 

Section 6(b) of the Act,10 in general, and 

Section 6(b)(4),11 in particular, in that it 

provides for the equitable allocation of 

dues, fees and other charges among its 

members. 

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 written comments on the 

proposed rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing proposed rule change 

has become effective upon filing 

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

Act 12 and Rule 19b–4(f)(2) thereunder13

because it establishes or changes a due, 

fee, or other charge imposed by the 

Exchange. At any time within 60 days 

of the filing of the 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 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 (http://www.sec.gov/ 

rules/sro.shtml); or 

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

No. SR–NYSEArca–2007–25 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Nancy M. Morris, Secretary, 

Securities and Exchange Commission, 

Station Place, 100 F Street, NE., 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–NYSEArca–2007–25. 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 Commissions 

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 the filing also will be 

available for inspection and copying at 

the principal office of NYSE Arca. 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 

Number SR–NYSEArca–2007–25 and 

should be submitted on or before April 

3, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.14

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–4460 Filed 3–12–07; 8:45 am] 

BILLING CODE 8010–01–P 

SMALL BUSINESS ADMINISTRATION 

[Disaster Declaration # 10821 and # 10822] 

Alabama Disaster Number AL–00007 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Amendment 1. 

SUMMARY: This is an amendment of the 

Presidential declaration of a major 

disaster for the State of Alabama 

(FEMA–1687–DR), dated 3/3/2007. 


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