17212 Federal Register / Vol. 72, No. 66 / Friday, April 6, 2007 / Notices 

5 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Exchange By–Law Article VIII. 

4OEO jurisdiction would be limited to the 

Exchange’s options trading floor and systems. 

While acting in a similar capacity to Equity 

Exchange Officials, OEOs would not share any 

responsibilities or authority with Equity Exchange 

Officials. See Securities Exchange Act Release No. 

54538 (September 28, 2006), 71 FR 59184 (October 

6, 2006) (SR–Phlx–2006–43) (Order approving the 

Exchange’s new electronic equity trading system, 

XLE). 

requires that the rules of a clearing 

agency be designed to provide for the 

safeguarding of securities and funds 

which are in its possession or control or 

for which it is responsible. The 

proposed rule change will allow OCC’s 

clearing members and their customers to 

benefit from the portfolio margining 

program, which includes having greater 

liquidity and more efficient use of 

collateral, in a manner that is consistent 

with OCC’s overall risk management 

process. 

The Commission finds good cause for 

approving the proposed rule change 

prior to the thirtieth day after the date 

of publication of notice of filing because 

such approval will allow OCC’s 

members to immediately participate in 

the expanded portfolio margining pilot 

scheduled to be implemented on April 

2, 2007. 

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 

Number SR–OCC–2007–04 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–OCC–2007–04. 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 the principal office of OCC and on 

OCC’s Web site at http:// 

www.optionsclearing.com. 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–OCC–2007–04 and should 

be submitted on or before April 27, 

2007. 

V. Conclusion 

It is therefore ordered, pursuant to 

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

proposed rule change (File No. SR–

OCC–2007–04) be and hereby is 

approved on an accelerated basis. 

For the Commission by the Division of 

Market Regulation, pursuant to delegated 

authority.5

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–6493 Filed 4–5–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55552; File No. SR–Phlx–

2006–87] 

Self-Regulatory Organizations; 

Philadelphia Stock Exchange, Inc.; 

Notice of Filing of Proposed Rule 

Change, and Amendment Nos. 1 and 2 

Thereto, Relating to Options Exchange 

Officials 

March 29, 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 December 

14, 2006, the Philadelphia Stock 

Exchange, Inc. (‘‘Phlx’’ or ‘‘Exchange’’) 

filed with the Securities and Exchange 

Commission (‘‘Commission’’) a 

proposed rule change. On February 23, 

2007, the Exchange filed Amendment 

No.1 to the proposed rule change. On 

March 15, 2007, the Exchange filed 

Amendment No. 2 to the proposed rule 

change. The proposed rule change is 

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

which Items have been prepared 

substantially by the Phlx. 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 Phlx proposes to amend various 

rules related to dispute resolution, 

requests for relief from the requirements 

of certain rules, trading halts and order 

and decorum, by transferring the 

responsibilities from Exchange Floor 

Officials 3 to a new category of Exchange 

staff that would be known as an Options 

Exchange Official (‘‘OEO’’), as described 

more fully below. OEOs would replace, 

and assume all authority and 

responsibility currently handled by, 

Floor Officials. Thus, Floor Officials 

would cease to exist on the Exchange. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://www.phlx.com, at the Phlx, 

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 

Phlx 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. The Phlx 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 the proposed rule 

change is to establish a new category of 

Exchange staff, the OEO.4 The purpose 

of Amendment No. 1, which replaces 

the previous filing in its entirety, is to 

clarify that OEOs would replace, and 

assume all authority and responsibility 

currently handled by, Floor Officials, 

and to make other technical 

amendments to the previously 

submitted rule text. Amendment No. 2 


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Federal Register / Vol. 72, No. 66 / Friday, April 6, 2007 / Notices 17213 

5The designees of the respective floor Committee 

chairpersons are generally members of the 

respective committees and subcommittees thereof. 

6The Options Committee has general supervision 

of the dealings of members on the options trading 

floor. See Exchange By-Law Article X, Section 10–

20. 

7The Foreign Currency Options Committee has 

general supervision of the dealings of members on 

the foreign currency options trading floor. See 

Exchange By-Law Article X, Section 10–17. 

8See Exchange Rule 124(d). 

9The Referee is an Exchange employee or 

independent contractor who is appointed by the 

Exchange’s Board of Governors on the 

recommendation of the Audit Committee to review 

Floor Official rulings concerning the nullification 

and adjustment of transactions in accordance with 

Rule 124(d), and to act in the capacity of a Floor 

Official respecting initial rulings concerning 

requests for relief from the requirements of certain 

Exchange Rules. See Exchange Rule 124, 

Commentary .02. 

10See proposed Exchange Rule 124, Commentary 

.02(a). Telephone conversation on March 19, 2007, 

between Richard Rudolph, Vice President and 

Counsel, Phlx and Jennifer Dodd, Special Counsel, 

Division of Market Regulation, Commission 

(‘‘Telephone Conversation’’). 

11See proposed Exchange Rule 124, Commentary 

.01. Telephone Conversation. 

12See Exchange Rule 124. One Floor Official may 

adjust the terms of a transaction in a dispute; two 

Floor Officials must determine to nullify a 

transaction in such a situation. 

13See Exchange Rule 1092. Two Floor Officials 

must determine that an obvious error (as defined in 

the rule) occurred in order to nullify a transaction. 

14Currently, Exchange rules require two Floor 

Officials to nullify a transaction. See Exchange Rule 

124(a). See also Exchange Rule 1092(e)(ii)(B). The 

instant proposal would require one OEO to nullify 

a transaction. 

15Relief from the established bid/ask differentials 

may be granted upon the receipt of an approval of 

two Floor Officials. See OFPA F–6. 

16See Exchange Rule 1080(e). 

17 See, e.g., Securities Exchange Act Release No. 

50728 (November 23, 2004), 69 FR 69982 

Continued 

makes clarifying changes to the purpose 

section and technical corrections to the 

proposed rule text. 

Pursuant to Exchange By-Law Article 

VIII, Floor Officials, as designees 5 of the 

Chairpersons of the Options 

Committee,6 and Foreign Currency 

Options Committee,7 respectively, are 

authorized to administer the provisions 

of Exchange By-Laws and Rules of the 

Exchange pertaining to the respective 

trading floors and the immediately 

adjacent premises of the Exchange. They 

may impose penalties, as applicable, for 

breaches of their rules or regulations 

relating to order, decorum, health, safety 

and welfare on the respective trading 

floors. Additionally, they may rule to 

nullify, or adjust the terms of, executed 

trades under specific and limited 

conditions contained in Exchange rules, 

and may grant relief from certain 

requirements of on-floor members and 

member organizations if authorized to 

do so by rule. 

As described more fully below, in 

some instances an OEO would assume 

responsibilities of Exchange staff, 

particularly in the situation where 

certain current Floor Official decisions 

require concurrence of a Market 

Surveillance officer. In other instances, 

one single OEO would be authorized to 

rule on matters that currently require a 

decision from two Floor Officials. The 

current process for the review of, or 

appeal from, from Floor Official 

decisions 8 (which, under the proposal 

would become OEO decisions) and the 

role of the Exchange’s Referee 9 would 

be unchanged. 

Definition of OEO. Currently, Floor 

Officials appointed by the respective 

floor committee chairs, are Exchange 

members. Under proposed Rule 1(pp), 

an OEO would be defined as an 

Exchange staff member or contract 

employee designated as such by the 

Exchange’s Chief Regulatory Officer 

(‘‘CRO’’). A list of individual OEOs 

would be displayed on the Exchange 

website, and would be maintained and 

updated each time a name is added to, 

or deleted from, the list of OEOs. The 

Exchange’s Referee would be 

responsible for maintaining and 

updating such list. In the event no OEO 

is available to rule on a particular 

matter, the CRO or his/her designee 

would be required to rule on such 

matter. OEOs would be located on the 

Exchange’s options trading floor and 

report to the CRO. 

OEOs would be members of the 

Exchange’s regulatory staff, including 

the on-floor surveillance staff, who have 

sufficient expertise to act in the capacity 

of an OEO as determined by the CRO. 

This could include existing Exchange 

regulatory staff, new hires, or contract 

employees. 

Under the proposal, the Referee may 

act in the capacity of an OEO respecting 

initial rulings concerning requests for 

relief from the requirements of certain 

enumerated Exchange rules,10 since 

such rulings are final and not 

appealable. The Referee could not, 

however, rule in the capacity of an OEO 

concerning, for example, a nullified or 

adjusted trade resulting from trading 

dispute or an obvious error, because the 

Referee would have a conflict of interest 

in ruling on an appeal from his or her 

own decision to nullify or adjust such 

a trade.11

Nullification and Adjustment of 

Transactions. Currently, Exchange Floor 

Officials are authorized to rule on 

trading disputes occurring on the 

options trading floor, which could result 

in the adjustment or nullification of 

executed transactions.12 Floor Officials 

are also currently authorized to nullify 

or adjust executed transactions in the 

case of an obvious error as defined in 

the Exchange’s rules.13 Such rulings can 

be appealed to the Referee for review. 

The Referee may uphold, modify, or 

overturn the ruling. The decision of the 

Referee concerning these types of 

rulings is final and may not be appealed 

to the Exchange’s Board of Governors. 

OEOs would replace Floor Officials 

respecting initial rulings on adjustment 

or nullification of transactions. One 

OEO may adjust a transaction, and the 

Exchange proposes to require only one 

OEO to nullify a transaction as well.14

The Exchange believes that this should 

expedite the decision making process 

for the nullification of transactions. As 

stated above, such rulings would 

continue to be appealable to the Referee. 

Initial Requests for Relief. Floor 

Officials and, in some instances the 

Referee, are currently authorized to rule 

on initial requests for relief from the 

requirements of certain rules, including, 

without limitation, quote spread 

parameters,15 and disengagement of 

Exchange automatic execution systems 

under extraordinary circumstances.16

Such rulings are final and may not be 

appealed to the Board. 

Similarly, the proposal would 

authorize OEOs to replace Floor 

Officials and to make initial rulings 

concerning requests for relief from the 

requirements of other Exchange Rules. 

For example, the proposal would 

authorize OEOs to rule on requests for 

relief from Exchange rules relating to: (i) 

Bid/ask differentials pursuant to 

Exchange Rule 1014(c) and Options 

Floor Procedure Advice (‘‘OFPA’’) F–6; 

(ii) disengagement of Exchange 

automatic execution systems pursuant 

to Exchange Rule 1080(e) and OFPA A–

13; (iii) the determination that quotes in 

options on the Exchange or another 

market or markets are subject to relief 

from the firm quote requirement 

pursuant to Exchange Rule 1080(c)(i); 

and (iv) trading halts, openings and reopenings pursuant to Rules 1017, 1047 

and 1047A and OFPAs A–12, A–14 and 

G–2. 

Rule 1014(c) and OFPA F–6 set forth 

the maximum allowable bid/ask 

differentials, or quote widths, that may 

be disseminated by specialists and 

ROTs on the Exchange, depending on 

the price of the series to be quoted. The 

Exchange believes that these 

requirements can have the unintended 

consequence of requiring those making 

markets to quote at prices that are 

unnecessarily narrow, thereby exposing 

them to great risk if markets move 

quickly.17 Two Floor Officials may 


pwalker on PROD1PC71 with NOTICES
17214 Federal Register / Vol. 72, No. 66 / Friday, April 6, 2007 / Notices 

(December 1, 2004) (SR–Phlx–2004–74) (Notice of 

Filing and Immediate Effectiveness of Proposed 

Rule Change and Amendment No. 1 by the 

Philadelphia Stock Exchange, Inc. Relating to $5 

Bid/Ask Differentials). 

18See Exchange Rule 1017(f). 

19See Exchange Rule 1017(e)(ii). 

20See Exchange Rules 1047 and 1047A. See also, 

OFPA G–2. 

21See Exchange Rule 60. 

22The Business Conduct Committee has 

exclusive jurisdiction to (i) monitor compliance 

with the Exchange Act, the rules and regulations 

thereunder, the By-Laws and rules of the Exchange 

or any interpretation thereof, and the rules, 

regulations, resolutions and stated policies of the 

Board of Governors or any committee of the 

Exchange, by Members, participants, Member 

Organizations and participant organizations and 

persons associated with any such persons or 

organizations; (ii) examine into the business 

conduct and financial condition of Members, 

participants, Member Organizations and participant 

organizations and persons associated with any such 

persons or organizations; and (iii) authorize the 

initiation of any disciplinary actions or proceedings 

brought by the Exchange. See Exchange By-Law 

Article X, Section 10–11. 

23See Exchange Rule 60(b)(i). 

24See Securities Exchange Act Release No. 54538 

(September 28, 2006), 71 FR 59184 (October 6, 

2006) (SR–Phlx–2006–43). 

25 15 U.S.C. 78f(b). 

26 15 U.S.C. 78f(b)(5). 

27 15 U.S.C. 78f(b)(1). 

currently grant relief from these 

differentials during times of peak 

market activity where options markets 

and/or the market for securities 

underlying the option move quickly. 

Under the proposal, one OEO would be 

authorized to make such a ruling. The 

Exchange believes that this should 

expedite the process for granting or 

denying such relief by reducing the 

number of persons required to 

participate in such a ruling. 

Openings. Currently, the Exchange 

provides an automated opening system 

for options; however, two Floor Officials 

may direct the manual opening of the 

affected series where necessary to 

ensure a fair and orderly market.18 For 

example, two Floor Officials may 

authorize the opening of a series at a 

price that falls outside of the Exchange’s 

established parameters 19 where 

necessary to ensure a fair and orderly 

market. 

The Exchange proposes to replace the 

two Floor Officials with a single OEO, 

who would have the same authority 

described above concerning openings. 

The purpose of this provision is to 

expedite the approval process for 

manual openings on the Exchange, 

thereby enabling the Exchange to open 

the particular series as quickly as 

possible. 

Trading Halts, Rotations, and ReOpenings Following a Trading Halt. 

Currently, two Floor Officials, with the 

concurrence of a Market Surveillance 

officer, are currently authorized to rule 

on trading halts, rotations and reopenings following a trading halt.20 The 

Exchange proposes to amend the rules 

so that one OEO could make such a 

ruling. Further, the Exchange proposes 

to delete the provisions from the rules 

requiring the concurrence of a Market 

Surveillance officer in rulings 

concerning trading halts and reopenings following a trading halt. The 

purpose of this deletion is to avoid 

unnecessary delays in locating and 

informing a Market Surveillance officer 

of a situation requiring a halt (such as 

a halt in trading in the underlying 

security) while volatile market activity 

continues. The Exchange believes that 

the timeliness of such a ruling is critical 

in such situations, because customers 

and other market participants could be 

subject to immeasurable risk during the 

time period between the occurrence of 

an event requiring a halt or re-opening 

and the time the decision is made and 

trading is actually halted. Thus, one 

OEO could make a prompt ruling 

without unnecessary delay. 

Order and Decorum. Currently, a 

Floor Official may impose on members, 

member organizations, participants, 

participant organizations and their 

associated persons, fines for breaches of 

regulations that relate to administration 

of order, decorum, health, safety and 

welfare on the Exchange.21 Under the 

proposal, OEOs would have this 

authority. Currently, two Floor Officials 

may refer such a matter to the 

Exchange’s Business Conduct 

Committee (‘‘BCC’’).22 Under the 

proposal, OEOs would have this 

authority, and one OEO could refer such 

a matter to the BCC. 

Currently, two Floor Officials and an 

officer of the Exchange may exclude a 

member, participant, and any associated 

person of member organizations and 

participant organizations from the 

trading floor for breaches of regulations 

that relate to administration of order, 

decorum, health, safety and welfare on 

the Exchange that occurred on the 

trading floor or on the premises 

immediately adjacent to the trading 

floor if they pose an immediate threat to 

the safety of persons or property, are 

seriously disrupting Exchange 

operations, or are in possession of a 

firearm.23 The Exchange proposes to 

authorize one OEO and an officer of the 

Exchange to do so. 

Finally, the Exchange proposes a 

housekeeping amendment to OFPA 

F–27, to delete the term ‘‘Floor 

Procedure Committee,’’ because that 

committee no longer exists on the 

Exchange.24

The Exchange believes that replacing 

Floor Officials with OEOs should result 

in a more neutral, efficient and 

streamlined process for the resolution of 

disputes on the Exchange, together with 

an expedited process through which the 

Exchange may rule on matters currently 

handled by Floor Officials, including 

the determination to nullify and adjust 

transactions; to halt and re-open options 

series for trading; to conduct manual 

openings where necessary in the interest 

of a fair and orderly market; to process 

requests for relief from the requirements 

of certain rules; and to more efficiently 

maintain order and decorum on the 

Exchange’s options trading floor and 

surrounding areas. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act 25 in general, and furthers the 

objectives of Section 6(b)(5) of the Act 26

in particular, in that it is designed 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, by 

establishing and authorizing neutral 

OEOs to rule on matters such as trading 

disputes, requests for relief, openings, 

trading halts and reopenings, and to 

efficiently maintain order and decorum 

on the options trading floor. The 

Exchange further believes that the 

proposal is consistent with Section 

6(b)(1) 27 of the Act in that the proposal 

is designed to enable the Exchange to 

continue to comply, and to enforce 

compliance by its members and persons 

associated with its members, with 

provisions of the Act, the rules and 

regulations thereunder, and the rules of 

the Exchange. 

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 

No written comments were either 

solicited or received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within 35 days of the date of 

publication of this notice in the Federal 


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Federal Register / Vol. 72, No. 66 / Friday, April 6, 2007 / Notices 17215 

28 17 CFR 200.30–3(a)(12). 

Register or within such longer period (i) 

as the Commission may designate up to 

90 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 Phlx 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 

Number SR–Phlx–2006–87 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–Phlx–2006–87. 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 the Phlx. 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–Phlx–2006–87 and should 

be submitted on or before April 27, 

2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.28

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–6496 Filed 4–5–07; 8:45 am] 

BILLING CODE 8010–01–P 

SOCIAL SECURITY ADMINISTRATION 

[Docket No. SSA 2007–0023] 

Privacy Act of 1974, as Amended; 

Computer Matching Program (SSA/ 

States, SDX–BENDEX–SVES Files)—

Match 6001, 6002 and 6004 

AGENCY: Social Security Administration 

(SSA). 

ACTION: Notice of a renewal of an 

existing computer matching program 

which is scheduled to expire on June 

30, 2007. 

SUMMARY: In accordance with the 

provisions of the Privacy Act, as 

amended, this notice announces a 

renewal of an existing computer 

matching program that SSA is currently 

conducting with the States. 

DATES: SSA will file a report of the 

subject matching program with the 

Committee on Homeland Security and 

Governmental Affairs of the Senate, the 

Committee on Oversight and 

Government Reform of the House of 

Representatives and the Office of 

Information and Regulatory Affairs, 

Office of Management and Budget 

(OMB). The matching program will be 

effective as indicated below. 

ADDRESSES: Interested parties may 

comment on this notice by either 

telefaxing to (410) 965–8582 or writing 

to the Associate Commissioner, Office of 

Income Security Programs, 252 

Altmeyer Building, 6401 Security 

Boulevard, Baltimore, MD 21235–6401. 

All comments received will be available 

for public inspection at this address. 

FOR FURTHER INFORMATION CONTACT: The 

Associate Commissioner for Income 

Security Programs as shown above. 

SUPPLEMENTARY INFORMATION: 

A. General 

The Computer Matching and Privacy 

Protection Act of 1988 (Public Law 

(Pub.L.) 100–503), amended the Privacy 

Act (5 U.S.C. 552a) by describing the 

manner in which computer matching 

involving Federal agencies could be 

performed and adding certain 

protections for individuals applying for, 

and receiving, Federal benefits. Section 

7201 of the Omnibus Budget 

Reconciliation Act of 1990 (Pub. L. 101–

508) further amended the Privacy Act 

regarding protections for such 

individuals. 

The Privacy Act, as amended, 

regulates the use of computer matching 

by Federal agencies when records in a 

system of records are matched with 

other Federal, State, or local government 

records. It requires Federal agencies 

involved in computer matching 

programs to: 

(1) Negotiate written agreements with 

the other agency or agencies 

participating in the matching programs; 

(2) Obtain the Data Integrity Boards’

approval of the match agreements; 

(3) Publish notice of the computer 

matching program in the Federal 

Register; 

(4) Furnish detailed reports about 

matching programs to Congress and 

OMB; 

(5) Notify applicants and beneficiaries 

that their records are subject to 

matching; and 

(6) Verify match findings before 

reducing, suspending, terminating, or 

denying an individual’s benefits or 

payments. 

B. SSA Computer Matches Subject to 

the Privacy Act 

We have taken action to ensure that 

all of SSA’s computer matching 

programs comply with the requirements 

of the Privacy Act, as amended. 

Dated: March 27, 2007. 

Manuel J. Vaz, 

Acting Deputy Commissioner for Disability 

and Income Security Programs. 

Notice of Computer Matching Program, 

Social Security Administration (SSA) 

With the States 

A. Participating Agencies 

SSA and the States. 

B. Purpose of the Matching Program 

The purpose of this matching program 

is to establish the conditions, safeguards 

and procedures under which the States 

may obtain SSN verification and certain 

SSA information relating to the 

eligibility for, and payment of, Social 

Security, Supplemental Security Income 

and Special Veterans Benefits, including 

certain tax return, quarters of coverage, 

prisoner and death information. This 

information is available from various 

SSA systems of records. 

Individual agreements with the States 

will describe the information to be 


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