Federal Register / Vol. 72, No. 70 / Thursday, April 12, 2007 / Notices 18505 

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

11 15 U.S.C. 78f(b)(5). 

12 In approving this proposed rule change, the 

Commission notes that it has considered the 

proposed rule’s impact on efficiency, competition, 

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

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. 

III. Discussion and Commission 

Findings 

After careful review, the Commission 

finds that the proposed rule change is 

consistent with Section 6(b) of the Act 10

in general and Section 6(b)(5) of the 

Act 11 in particular, which require that 

the rules of the Exchange be designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade and, in 

general, to protect investors and the 

public interest.12 The proposed rule 

change, as amended, enables the 

Director of Arbitration to remove an 

arbitrator when a conflict arises after the 

commencement of the hearing or when 

information required to be disclosed 

pursuant to Exchange Rule 610 and of 

which the parties were previously 

unaware, is not disclosed. Similarly, the 

proposed rule change also permits an 

arbitrator to be removed where 

circumstances known before the 

commencement of the hearing develop 

into a conflict after the commencement 

of the hearing. Enabling the Director of 

Arbitration to remove arbitrators with 

any of these conflicts if they fail to 

recuse themselves will address 

circumstances in which an arbitrator 

with a conflict could otherwise continue 

serving on a panel. We believe that 

allowing the Director of Arbitration to 

exercise this authority will facilitate the 

removal of arbitrators with either 

previously undisclosed and unknown 

conflicts or newly-arising conflicts 

(whether from known or unknown 

circumstances), and will therefore 

enhance the fairness and transparency 

of the arbitration process. Accelerated 

Approval of the Proposed Rule Change 

as Modified by Amendment Nos. 2 and 

3. The Commission finds good cause for 

approving the proposed rule change as 

modified by Amendment Nos. 2 and 3 

to the proposed rule change prior to the 

thirtieth day after the amendment is 

published for comment in the Federal 

Register pursuant to Section 19(b)(2) of 

the Act.13 Amendment No. 2 responded 

to a comment by providing that parties 

aware of conflicts prior to the time that 

the arbitrator was appointed could not 

delay action on that knowledge. 

Amendment No. 3, which clarified 

Amendment No. 2, set forth the two 

grounds for removal of an arbitrator 

after commencement of the hearing: 

first, a conflict arising after the 

commencement of the hearing; and 

second, a failure to disclose information 

pursuant to Rule 610 if the parties were 

previously unaware of the undisclosed 

information. The Commission finds 

that, given the concerns the commenter 

raised with respect to the possibility 

that the arbitration process might be 

manipulated by parties seeking to 

remove an arbitrator based on 

information known to a party at an 

earlier date but acted upon only after 

the party assessed the arbitrator, it is 

appropriate and responsive for the 

Exchange to amend the proposed rule 

change to provide that an arbitrator 

cannot be removed after taking the oath 

of arbitration for a particular case based 

on a conflict of which the parties were 

previously aware. In essence, the rule 

provides that parties who come into 

knowledge of a conflict may not delay 

before requesting removal of an 

arbitrator. Similarly, the Commission 

believes that it is appropriate to permit 

the Director of Arbitration to remove an 

arbitrator for whom a conflict arises 

after commencement of the hearing, as 

the NYSE rules do not presently provide 

for such removal. Accordingly, the 

Commission finds good cause to 

accelerate approval of the proposed rule 

change, as amended. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the proposed rule 

change as modified by Amendment Nos. 

2 and 3, including whether Amendment 

Nos. 2 and 3 are 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 e-mail to rulecomments@sec.gov. Please include File 

Number SR–NYSE–2004–56 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–NYSE–2004–56. 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 NYSE. 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–NYSE–2004–56 and should 

be submitted on or before May 3, 2007. 

V. Conclusion 

It is therefore ordered, pursuant to 

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

proposed rule change (SR–NYSE–2004–

56), as amended, be, and hereby is, 

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. E7–6935 Filed 4–11–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55591; File No. SR–Phlx–

2007–30] 

Self-Regulatory Organizations; 

Philadelphia Stock Exchange, Inc.; 

Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change Relating to Ratio Spreads 

April 6, 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 27, 

2007, the Philadelphia Stock Exchange, 

Inc. (‘‘Phlx’’ 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 prepared substantially by the Phlx. 


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18506 Federal Register / Vol. 72, No. 70 / Thursday, April 12, 2007 / Notices 

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

4 17 CFR 240.19b–4(f)(6). 

5The Phlx has asked the Commission to waive 

the 30-day operative delay provided in Rule 19b–

4(f)(6)(iii), 17 CFR 240.19b–4(f)(6)(iii). 

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

6 15 U.S.C. 78f(b)(5). 

8 15 U.S.C. 78s(b)(3)(A). 

9 17 CFR 240.19b–4(f)(6). 

10 17 CFR 240.19b–4(f)(6)(iii). 

11 17 CFR 240.19b–4(f)(6). 

12 17 CFR 240.19b–4(f)(6)(iii). 

13See American Stock Exchange LLC Rule 

950(e)(v); Chicago Board Options Exchange, 

Incorporated Rule 6.53(n); International Securities 

Exchange, LLC Rule 722(a)(6); and NYSE Arca, Inc. 

Rule 6.62(j). 

14See note 13, supra. For 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. 15 U.S.C. 78c(f). 

The Exchange filed the proposal 

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

Act 3 and Rule 19b–4(f)(6) thereunder,4

which renders the proposal effective 

upon filing with the Commission.5 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 Phlx proposes to amend Phlx 

Rules 1033, ‘‘Bids and Offers—

Premium,’’ and 1066, ‘‘Certain Types of 

Orders Defined,’’ to define and permit 

ratio spreads in all options traded on the 

Exchange. 

The text of the proposed rule change 

is available at the Exchange, in the 

Commission’s Public Reference Room, 

and at http://www.phlx.com. 

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 define and permit ratio 

spreads in options overlying equities, 

indexes, and Exchange Traded Fund 

Shares (‘‘ETFs’’), and to establish by 

rule permissible ratios for such orders. 

Currently, Phlx Rule 1033 permits 

members to trade spread orders in 

which the respective legs consist of 

different numbers of contracts (ratio 

spreads) for foreign currency options 

only. The proposed rule change would 

expand the rule to permit ratio spreads 

for all options traded on the Exchange 

by deleting from the rules language 

limiting such orders to options 

overlying foreign currencies. 

Specifically, the Phlx proposes to 

amend Phlx Rule 1033(g) to permit ratio 

spreads for spread, straddle, and 

combination orders, as defined in Phlx 

Rule 1066, in equity, ETF, and index 

options by deleting the current language 

that limits such orders to foreign 

currency options. The amended rules 

would permit spread, straddle, and 

combination orders in equity, ETF, and 

index options with a ratio that is equal 

to or greater than one-to-three and less 

than or equal to three-to-one. 

Phlx Rule 1066 currently defines a 

‘‘spread order’’ as an order to buy a 

stated number of option contracts and to 

sell the same number of option 

contracts in a different series of the 

same option. The proposed amendment 

would re-define the term ‘‘spread order’’

as an order to buy a stated number of 

option contracts and to sell a stated 

number of option contracts (which may 

be a different number of contracts) in a 

different series of the same option. The 

definition would also clarify that such 

an order may be bid for or offered on a 

total net debit or credit basis. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act 6 in general, and furthers the 

objectives of Section 6(b)(5) of the Act 7

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 

permitting ratio spreads in all options 

traded on 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 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 

The Phlx has filed the proposed rule 

change pursuant to Section 19(b)(3)(A) 

of the Act 8 and subparagraph (f)(6) of 

Rule 19b–4 thereunder.9 Because the 

Phlx has designated the foregoing 

proposed rule change as one that does 

not: (i) Significantly affect the 

protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate if 

consistent with the protection of 

investors and the public interest, the 

proposed rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act and Rule 19b–4(f)(6) 

thereunder. As required by Rule 19b–

4(f)(6)(iii) under the Act,10 the Phlx 

provided the Commission with 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 filing the proposal with the 

Commission or such shorter period as 

designated by the Commission. 

A proposed rule change filed under 

Rule 19b–4(f)(6) under the Act 11

normally does not become operative 

prior to 30 days after the date of filing. 

However, Rule 19b–4(f)(6)(iii) permits 

the Commission to designate a shorter 

time if such action is consistent with the 

protection of investors and the public 

interest.12 The Phlx has asked the 

Commission waive the 30-day operative 

delay to allow the Phlx to have the same 

rules governing ratio spreads as those 

currently in effect on other options 

exchanges.13

The Commission believes that 

waiving the 30-day operative delay is 

consistent with the protection of 

investors and the public interest 

because it would allow the Phlx to 

implement rules governing ratio spreads 

consistent with those adopted by other 

options exchanges without delay.14 For 

this reason, the Commission designates 

that the proposal become operative 

immediately. 

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, 


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Federal Register / Vol. 72, No. 70 / Thursday, April 12, 2007 / Notices 18507 

15See 15 U.S.C. 78s(b)(3)(C). 16 17 CFR 200.30–3(a)(12). 

or otherwise in furtherance of the 

purposes of the Act.15

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–2007–30 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–Phlx–2007–30. 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–2007–30 and should 

be submitted on or before May 3, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.16

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–6878 Filed 4–11–07; 8:45 am] 

BILLING CODE 8010–01–P 

SMALL BUSINESS ADMINISTRATION 

[Disaster Declaration #10843 and #10844] 

Colorado Disaster #CO–00015 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Notice. 

SUMMARY: This is a notice of an 

Administrative declaration of a disaster 

for the State of Colorado dated 

04/05/2007. 

Incident: Tornado. 

Incident Period: 03/28/2007. 

Effective Date: 04/05/2007. 

Physical Loan Application Deadline 

Date: 06/04/2007. 

Economic Injury (EIDL) Loan 

Application Deadline Date: 01/07/2008. 

ADDRESSES: Submit completed loan 

applications to: U.S. Small Business 

Administration, Processing and 

Disbursement Center, 14925 Kingsport 

Road, Fort Worth, TX 76155. 

FOR FURTHER INFORMATION CONTACT: A. 

Escobar, Office of Disaster Assistance, 

U.S. Small Business Administration, 

409 3rd Street, SW., Suite 6050, 

Washington, DC 20416. 

SUPPLEMENTARY INFORMATION: Notice is 

hereby given that as a result of the 

Administrator’s disaster declaration, 

applications for disaster loans may be 

filed at the address listed above or other 

locally announced locations. 

The following areas have been 

determined to be adversely affected by 

the disaster: 

Primary Counties: Prowers. 

Contiguous Counties: 

Colorado: Baca, Bent, Kiowa. 

Kansas: Greeley, Hamilton, Stanton. 

The Interest Rates are: 

Percent 

Homeowners with Credit Available 

Elsewhere ................................. 5.750 

Homeowners without Credit Available Elsewhere ......................... 2.875 

Businesses with Credit Available 

Elsewhere ................................. 8.000 

Businesses & Small Agricultural 

Cooperatives without Credit 

Available Elsewhere .................. 4.000 

Other (including Non-Profit Organizations) with Credit Available 

Elsewhere ................................. 5.250 

Percent 

Businesses and Non-Profit Organizations without Credit Available Elsewhere ......................... 4.000 

The number assigned to this disaster 

for physical damage is 10843 C and for 

economic injury is 10844 0. 

The States which received an EIDL 

Declaration # are Colorado, Kansas. 

(Catalog of Federal Domestic Assistance 

Numbers 59002 and 59008) 

Dated: April 5, 2007. 

Steven C. Preston, 

Administrator. 

[FR Doc. E7–6950 Filed 4–11–07; 8:45 am] 

BILLING CODE 8025–01–P 

DEPARTMENT OF STATE 

[Public Notice 5757] 

Culturally Significant Objects Imported 

for Exhibition; Determinations: 

‘‘Divisionism/Neo-Impressionism: 

Arcadia and Anarchy’’

Summary: Notice is hereby given of 

the following determinations: Pursuant 

to the authority vested in me by the Act 

of October 19, 1965 (79 Stat. 985; 22 

U.S.C. 2459), Executive Order 12047 of 

March 27, 1978, the Foreign Affairs 

Reform and Restructuring Act of 1998 

(112 Stat. 2681, et seq.; 22 U.S.C. 6501 

note, et seq.), Delegation of Authority 

No. 234 of October 1, 1999, Delegation 

of Authority No. 236 of October 19, 

1999, as amended, and Delegation of 

Authority No. 257 of April 15, 2003 [68 

FR 19875], I hereby determine that the 

objects to be included in the exhibition 

‘‘Divisionism/Neo-Impressionism: 

Arcadia and Anarchy,’’ imported from 

abroad for temporary exhibition within 

the United States, are of cultural 

significance. The objects are imported 

pursuant to loan agreements with the 

foreign owners or custodians. I also 

determine that the exhibition or display 

of the exhibit objects at the Solomon R. 

Guggenheim Museum, New York, New 

York, from on or about April 27, 2007, 

until on or about August 6, 2007, and 

at possible additional venues yet to be 

determined, is in the national interest. 

Public Notice of these Determinations is 

ordered to be published in the Federal 

Register. 

For Further Information Contact: For 

further information, including a list of 

the exhibit objects, contact Paul 

Manning, Attorney-Adviser, Office of 

the Legal Adviser, U.S. Department of 

State (telephone: (202) 453–8050). The 

address is U.S. Department of State, SA–


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