Federal Register / Vol. 72, No. 75 / Thursday, April 19, 2007 / Notices 19733 

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

12 17 CFR 240.19b–4(f)(6). 

13 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. NSX has satisfied the five-day prefiling notice requirement. 

14 Id. 

15For 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). 16 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Amendment No. 1, which supplemented the 

original filing, the NSX provided more information 

regarding the certification process and corrected a 

grammatical error. 

interest; (2) impose any significant 

burden on competition; and (3) become 

operative for 30 days after 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 Act11 and Rule 19b–

4(f)(6) thereunder.12

A proposed rule change filed under 

19b–4(f)(6) normally may not become 

operative prior to 30 days after the date 

of filing.13 However, Rule 19b–

4(f)(6)(iii) 14 permits the Commission to 

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest. The 

Exchange has requested that the 

Commission waive the 30-day operative 

delay. The Commission believes that 

waiving the 30-day operative delay is 

consistent with the protection of 

investors and the public interest 

because such waiver would permit the 

Exchange to immediately update the 

effective dates for NSX Rules 2.11 and 

2.12. For this reason, the Commission 

designates the proposed rule change to 

be operative upon filing with the 

Commission.15

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 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–NSX–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–NSX–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 

Room. Copies of the filing also will be 

available for inspection and copying at 

the principal office of NSX. 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–NSX–2007–04 and should 

be submitted on or before May 10, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.16

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–7422 Filed 4–18–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55631; File No. SR–NSX–

2006–16] 

Self-Regulatory Organizations; 

National Stock Exchange, Inc.; Notice 

of Filing of Proposed Rule Change and 

Amendment No. 1 Thereto Regarding 

the Annual Certification of Compliance 

and Supervisory Processes 

April 13, 2007. 

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

Securities Exchange Act of 1934 (the 

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

notice is hereby given that on November 

22, 2006, the National Stock Exchange, 

Inc. (‘‘NSX’’ 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 prepared by the Exchange. 

On April 9, 2007, the NSX filed 

Amendment No. 1 to the proposed rule 

change (‘‘Amendment No. 1’’).3 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 adopt NSX 

Rule 5.7 and accompanying 

Interpretations and Policies .01 (Annual 

Compliance and Supervision 

Certification) to require each Equity 

Trading Permit (‘‘ETP’’) Holder’s Chief 

Executive Officer (‘‘CEO’’) to certify 

annually to having in place a process to 

establish, maintain, review, modify, and 

test policies and procedures reasonably 

designed to achieve compliance with 

applicable Rules of the Exchange, and 

federal securities laws and regulations. 

The text of the proposed rule and 

interpretation is set forth below. 

Proposed new language is italicized. 

* * * * * 

CHAPTER V. 

SUPERVISION 

* * * * * 

Rule 5.7. Annual Certification of 

Compliance and Supervisory Processes 

Each ETP Holder shall have its chief 

executive officer (or equivalent officer) 

certify annually, as set forth in 


cprice-sewell on PROD1PC66 with NOTICES
19734 Federal Register / Vol. 72, No. 75 / Thursday, April 19, 2007 / Notices 

4This new rule should not impose substantial 

new obligations on NSX ETP Holders as the 

National Association of Securities Dealers, Inc. 

(‘‘NASD’’) and the New York Stock Exchange LLC 

(‘‘NYSE’’) have implemented similar rules. See 

NASD Rule 3013(b) and Interpretative Material—

3013 (‘‘IM 3013’’) (effective Dec. 1, 2004; 

amendment to IM 3013 effective March 17, 2006); 

NYSE Rule 342.30 (effective Nov. 16, 2005). As a 

Interpretations and Policies .01, that the 

ETP Holder has in place processes to 

establish, maintain, review, test and 

modify written compliance policies and 

written supervisory procedures 

reasonably designed to achieve 

compliance with applicable Rules of the 

Exchange and federal securities laws 

and regulations. 

Interpretations and Policies .01 Annual 

Compliance and Supervision 

Certification 

The Exchange is issuing this 

interpretation to Rule 5.7, which 

requires that the ETP Holder’s chief 

executive officer (or equivalent officer) 

execute annually a certification that the 

ETP Holder has in place processes to 

establish, maintain, review, test and 

modify written compliance policies and 

written supervisory procedures 

reasonably designed to achieve 

compliance with applicable Rules of the 

Exchange and federal securities laws 

and regulations. The certification for 

each ensuing year shall be effected no 

later than on the anniversary date of the 

previous year’s certification. The 

certification shall state the following: 

Annual Compliance and Supervision 

Certification 

The undersigned is the chief executive 

officer (or equivalent officer) of [name of 

ETP Holder corporation/partnership/ 

sole proprietorship] (the ‘‘ETP Holder’’). 

As required by Rule 5.7, the 

undersigned makes the following 

certification: 

1. The ETP Holder has in place 

processes to: 

(a) Establish, maintain and review 

policies and procedures reasonably 

designed to achieve compliance with 

applicable Rules of the National Stock 

Exchange, Inc. and federal securities 

laws and regulations; 

(b) Modify such policies and 

procedures as business, regulatory and 

legislative changes and events dictate; 

and 

(c) Test the effectiveness of such 

policies and procedures on a periodic 

basis, the timing and extent of which is 

reasonably designed to ensure 

continuing compliance with Rules of the 

National Stock Exchange, Inc. and 

federal securities laws and regulations. 

2. The undersigned chief executive 

officer (or equivalent officer) has 

conducted one or more meetings with 

the chief compliance officer in the 

preceding 12 months, the subject of 

which satisfy the obligations set forth in 

Interpretations and Policies .01 to Rule 

5.7. 

3. The ETP Holder’s processes, with 

respect to paragraph 1 above, are 

evidenced in a report reviewed by the 

chief executive officer (or equivalent 

officer), chief compliance officer, and 

such other officers as the ETP Holder 

may deem necessary to make this 

certification. The final report has been 

submitted to the ETP Holder’s board of 

directors and audit committee or will be 

submitted to the ETP Holder’s board of 

directors and audit committee (or 

equivalent bodies) at the earlier of their 

next scheduled meetings or within 45 

days of the date of execution of this 

certification. 

4. The undersigned chief executive 

officer (or equivalent officer) has 

consulted with the chief compliance 

officer and other officers as applicable 

(referenced in paragraph 3 above) and 

such other employees, outside 

consultants, lawyers and accountants, 

to the extent deemed appropriate, in 

order to attest to the statements made in 

this certification. 

* * * * * 

The Exchange provides the following 

guidance in completing the Certification 

above. Included in the processes 

requirement is an obligation on the part 

of the ETP Holder to conduct one or 

more meetings annually between the 

chief executive officer (or equivalent 

officer) and the chief compliance officer 

to: (1) Discuss and review the matters 

that are subject of the certification; (2) 

discuss and review the ETP Holder ’s 

compliance efforts as of the date of such 

meetings; and (3) identify and address 

significant compliance problems and 

plans for emerging business areas. 

The report required in paragraph 3 of 

the certification must document the ETP 

Holder’s processes for establishing, 

maintaining, reviewing, testing and 

modifying compliance policies, that are 

reasonably designed to achieve 

compliance with applicable NSX rules 

and federal securities laws and 

regulations, and any principal 

designated by the ETP Holder may 

prepare the report. The report must be 

produced prior to execution of the 

certification and be reviewed by the 

chief executive officer (or equivalent 

officer), chief compliance officer and 

any other officers the ETP Holder deems 

necessary to make the certification and 

must be provided to the ETP Holder’s 

board of directors and audit committee 

in final form either prior to execution of 

the certification or at the earlier of their 

next scheduled meetings or within 45 

days of execution of the certification. 

The report should include the manner 

and frequency in which the processes 

are administered, as well as the 

identification of officers and supervisors 

who have responsibility for such 

administration. The report need not 

contain any conclusions produced as a 

result of following the processes set 

forth therein. The report may be 

combined with any other compliance 

report or other similar report required 

by any other self-regulatory organization 

provided that: (1) Such report is clearly 

titled in a manner indicating that it is 

responsive to the requirements of the 

certification and Rule 5.7; (2) an ETP 

Holder that submits a report for review 

in response to a NSX request must 

submit the report in its entirety; and (3) 

the ETP Holder makes such report in a 

timely manner, i.e., annually. 

* * * * * 

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 IV below. The 

Exchange has prepared summaries, set 

forth in sections A, B, and C below, of 

the most significant parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

It is critical that each NSX ETP Holder 

understand the importance of 

employing comprehensive and effective 

compliance policies and written 

supervisory procedures. Compliance 

with applicable NSX rules and Federal 

securities laws and regulations is the 

foundation of ensuring investor 

protection and market integrity and is 

essential to the efficacy of selfregulation. Consequently, the Exchange 

is proposing to adopt Rule 5.7, that 

would require ETP Holders to have their 

CEOs, or equivalent officer, certify 

annually to having in place processes to 

establish, maintain, review, modify, and 

test policies and procedures reasonably 

designed to achieve compliance with 

applicable NSX rules, and Federal 

securities laws and regulations.4


cprice-sewell on PROD1PC66 with NOTICES
Federal Register / Vol. 72, No. 75 / Thursday, April 19, 2007 / Notices 19735 

result, a similar requirement is already in place for 

NASD and NYSE member firms, addressing 

member firms’ compliance with the rules of those 

self-regulatory organizations. The first certifications 

pursuant to those rules were due by April 1, 2006. 

5As a part of their process, ETP Holders must 

have the report reviewed by their governing bodies 

and committees that serve similar functions in lieu 

of a board of directors and audit committee. 

Specifically, the proposed rule change 

would require the CEO to certify 

annually that senior executive 

management has in place processes to: 

(1) Establish and maintain policies and 

procedures reasonably designed to 

achieve compliance with applicable 

NSX rules and Federal securities laws 

and regulations; (2) modify such 

policies and procedures as business, 

regulatory and legislative changes and 

events dictate; and (3) test the 

effectiveness of such policies and 

procedures on a periodic basis, the 

timing of which is reasonably designed 

to ensure continuing compliance with 

applicable NSX rules, and Federal 

securities laws and regulations. The 

proposed rule change further would 

require the CEO to certify that those 

processes are evidenced in a report that 

has been reviewed by those executing 

the certification, as well as the 

member’s board of directors and audit 

committee. The proposed rule change 

also would create a new Interpretation 

and Policy .01 to Rule 5.7, which sets 

forth the language of the certification 

and gives further guidance as to the 

requirements and limitations of the rule. 

The proposed rule change states that 

included in this processes requirement 

is an obligation on the part of the ETP 

Holder to conduct one or more meetings 

annually between the CEO (or 

equivalent officer) and the chief 

compliance officer to: (1) Discuss and 

review the matters that are subject of the 

certification; (2) discuss and review the 

ETP Holder’s compliance efforts as of 

the date of such meetings; and (3) 

identify and address significant 

compliance problems and plans for 

emerging business areas. The CEO also 

may be the same person as the chief 

compliance officer. 

As noted in the proposed rule change, 

the periodic and content requirements 

for meetings between the CEO (or 

equivalent officer) and the chief 

compliance officer, as well as the 

pertinent requirements of paragraphs 3 

and 4 of the certification, are intended 

to indicate the unique and integral role 

of the chief compliance officer both in 

the discharge of certain compliance 

processes and the reporting 

requirements that are the subject matter 

of the certification and in providing a 

reliable basis upon with the CEO can 

execute the certification. The chief 

compliance officer is the primary 

advisor to the ETP Holder on its overall 

compliance scheme and the 

particularized rules, policies and 

procedures that the ETP Holder adopts. 

This is because the chief compliance 

officer should have an expertise in the 

process of: (1) Gaining an understanding 

of the products, services or line 

functions that need to be the subject of 

written compliance policies and written 

supervisory procedures; (2) identifying 

the relevant rules, regulations, laws and 

standards of conduct pertaining to such 

products, services or line functions 

based on experience and/or consultation 

with those persons who have a technical 

expertise in such areas of the ETP 

Holder’s business; (3) developing, or 

advising other business persons charged 

with the obligation to develop, policies 

and procedures that are reasonably 

designed to achieve compliance with 

those relevant rules, regulations, laws 

and standards of conduct; (4) 

evidencing the supervision by the line 

managers who are responsible for the 

execution of compliance policies; and 

(5) developing programs to test 

compliance with the ETP Holder’s 

policies and procedures. 

It is that expertise in the process of 

compliance that makes the chief 

compliance officer an indispensable 

party to enable the CEO to reach the 

conclusions stated in the certification. 

Consequently, any certification made by 

a CEO under circumstances where the 

chief compliance officer has concluded, 

after consultation, that there is an 

inadequate basis for making such 

certification would be, without 

limitation, conduct inconsistent with 

the observance of the high standards of 

commercial honor, and the just and 

equitable principles of trade—a 

violation of NSX Rule 3.1. Beyond the 

certification requirement, it is the 

intention of both Rule 5.7 and 

Interpretations and Policies .01 to foster 

regular and significant interaction 

between senior management and the 

chief compliance officer regarding the 

ETP Holder’s comprehensive 

compliance program. 

The chief compliance officer and 

other compliance officers that report to 

the chief compliance officer (as 

described in the sentence that 

immediately follows) shall perform the 

compliance functions contemplated 

under paragraphs 3 and 4 of the 

certification. Nothing herein is intended 

to limit or discourage the participation 

of other employees both within and 

outside the ETP Holder’s compliance 

department in any aspect of the ETP 

Holder’s compliance programs or 

processes, including those matters 

discussed herein. However, it is 

understood that the chief compliance 

officer and, where applicable, the most 

senior compliance officers having 

primary compliance department 

responsibility for each of the ETP 

Holder’s business segments, will retain 

responsibility for the compliance 

functions contemplated by paragraphs 3 

and 4 of the certification. 

As may be necessary to render their 

views and advice, the chief compliance 

officer and the other officers referenced 

in paragraph 3 of the certification who 

consult with the CEO (or equivalent 

officer) pursuant to paragraph 4, shall, 

in turn, consult with other employees, 

officers, outside consultants, lawyers 

and accountants. 

The Exchange recognizes that 

supervisors with business line 

responsibility are accountable for the 

discharge of an ETP Holder’s 

compliance policies and written 

supervisory procedures. The signatory 

to the certification is certifying only as 

to having processes in place to establish, 

maintain, review, test and modify the 

ETP Holder’s written compliance and 

supervisory policies and procedures and 

the execution of this certification and 

any consultation rendered in connection 

with such certification does not by itself 

establish business line responsibility. 

The requirement that an ETP Holder’s 

processes include providing the report 

to the board of directors and audit 

committee (required by paragraph 3 of 

the certification) does not apply to ETP 

Holders that do not utilize these types 

of governing bodies and committees in 

the conduct of their business.5

The report required in paragraph 3 of 

the certification must document the ETP 

Holder’s processes for establishing, 

maintaining, reviewing, testing and 

modifying compliance policies, that are 

reasonably designed to achieve 

compliance with applicable NSX rules 

and Federal securities laws and 

regulations. Any principal designated 

by the ETP Holder may prepare the 

report. The report must be produced 

prior to execution of the certification 

and be reviewed by the CEO (or 

equivalent officer), chief compliance 

officer and any other officers the ETP 

Holder deems necessary to make the 

certification and must be provided to 

the ETP Holder’s board of directors and 

audit committee in final form either 

prior to execution of the certification, at 

the earlier of their next scheduled 

meetings or within 45 days of execution 

of the certification. The report should 

include the manner and frequency in 

which the processes are administered, 


cprice-sewell on PROD1PC66 with NOTICES
19736 Federal Register / Vol. 72, No. 75 / Thursday, April 19, 2007 / Notices 

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

7 15 U.S.C. 78f(b)(5). 

as well as the identification of officers 

and supervisors who have responsibility 

for such administration. The report need 

not contain any conclusions produced 

as a result of following the processes set 

forth therein. The report may be 

combined with any other compliance 

report or other similar report required 

by any other self-regulatory organization 

provided that: (1) Such report is clearly 

titled in a manner indicating that it is 

responsive to the requirements of the 

certification and Rule 5.7; (2) an ETP 

Holder that submits a report for review 

in response to a NSX request must 

submit the report in its entirety; and (3) 

the ETP Holder makes such report in a 

timely manner, for example, annually. 

In summary, this proposal recognizes 

that responsibility for discharging 

compliance policies and written 

supervisory procedures rests with 

business line supervisors. The proposal 

also clarifies that execution of the 

certification does not by itself establish 

a signatory as having such line 

supervisory responsibility. The proposal 

also sets forth the particulars regarding 

the report that must evidence a 

member’s compliance processes. It 

states that the report must be produced 

prior to execution of the certification 

and reviewed by the CEO, and such 

other officers as the member deems 

necessary. The report also must include 

the manner and frequency in which the 

processes are administered and identify 

those officers and supervisors with 

responsibility for such administration. 

The report need not contain conclusions 

that result from following the specified 

processes, such as compliance 

deficiencies. Additionally, the report 

may be combined with other reports 

required by a self-regulatory 

organization, provided the report is 

made annually, clearly indicates in the 

title that it contains the information 

required by Rule 5.7, and that the entire 

report is provided in response to any 

regulatory request for all or part of the 

combined report. Finally, with respect 

to review of the report, this clarifies that 

review by a member’s board of directors 

and audit committee only applies to 

those members whose corporate 

governance structure have such or 

similar governing bodies and 

committees—it does not impose a 

requirement that members create them if 

they do not currently exist. 

ETP Holders should understand that 

the requirements of Rule 5.7 and 

Interpretations and Policies .01 

represent, in part, a principle-based 

requirement to certify that the ETP 

Holder has in place processes to 

establish, maintain, review, test and 

modify written compliance policies and 

written supervisory procedures 

reasonably designed to achieve 

compliance with applicable NSX rules 

and Federal securities laws and 

regulations. Consequently, compliance 

with the periodic and content 

requirements of the Interpretation 

pertaining to meetings between the CEO 

(or equivalent officer) and the chief 

compliance officer does not satisfy the 

full extent of these principle-based 

obligations that will vary with the facts 

and circumstances of an ETP Holder’s 

business activities and organizational 

structure. Moreover, NSX emphasizes 

the testing aspect of this principle-based 

requirement; an integral purpose of NSX 

rules pertaining to supervision is that 

ETP Holders adopt policies and 

procedures that are effective as to both 

the scope of, and the achievement of 

compliance with, applicable NSX rules, 

and Federal securities laws and 

regulations. 

NSX believes the proposal provides 

an effective mechanism to compel 

substantial and purposeful interaction 

between senior management and 

compliance personnel, thereby 

enhancing the quality of ETP Holders’

supervisory and compliance systems. 

NSX further believes the rule change 

imposes the minimal additional burden 

on ETP Holders that is necessary to 

achieve the proposal’s purpose, as the 

firms are already obligated to provide 

similar certifications in connection with 

rules of other self-regulatory 

organizations. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

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

furthers the objectives of Section 

6(b)(5) 7 of the Act, in particular, in that 

it is designed to promote just and 

equitable principles of trade, to prevent 

fraudulent and manipulative acts and 

practices, and, in general, to protect 

investors and the public interest. NSX 

believes that that the proposed rule 

change is consistent with the provisions 

of the Act noted above in that it will 

enhance focus on ETP Holders’

compliance and supervision systems, 

thereby decreasing the likelihood of 

fraud and manipulative acts and 

increasing investor protection. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change would 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 

Within 35 days of the publication of 

this notice in the Federal 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 the NSX consents, the 

Commission will: 

(A) By order approve the 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–NSX–2006–16 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–NSX–2006–16. This file number 

should be included in the subject line 

if e-mail is used. To help the 

Commission process and review 

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 


cprice-sewell on PROD1PC66 with NOTICES
Federal Register / Vol. 72, No. 75 / Thursday, April 19, 2007 / Notices 19737 

8 17 CFR 200.30–3(a)(12). 

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 filings 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 number 

SR–NSX–2006–16 and should be 

submitted on or before May 10, 2007. 

For the Commission by the Division of 

Market Regulation, pursuant to the delegated 

authority.8

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–7428 Filed 4–18–07; 8:45 am] 

BILLING CODE 8010–01–P 

SMALL BUSINESS ADMINISTRATION 

Small Business Size Standards: 

Waiver of the Nonmanufacturer Rule 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Notice Denying a Request for a 

Waiver of the Nonmanufacturer Rule for 

Re-Refining Used Petroleum Lubricating 

Oils (MIL–PRF–2104; Type 10W, Type 

15W40, Type 30W and Type 40W). 

SUMMARY: The U.S. Small Business 

Administration (SBA) is denying the 

request for a class waiver of the 

Nonmanufacturer Rule for Re-Refining 

Used Petroleum Lubricating Oils (MIL–

PRF–2104; Type 10W, Type 15W40, 

Type 30W and Type 40W), under the 

NAICS code 324191. The basis for this 

denial is that SBA has determined that 

this request is for a product in a specific 

solicitation, rather than for a class of 

products within a subdivision within a 

North American Industry Classification, 

as is required for class waivers under 13 

CFR 121.1202(d). 

DATES: This notice is effective 

immediately. 

FOR FURTHER INFORMATI0N CONTACT: 

Sarah L. Ayers, Program Analyst, by 

telephone at (202) 205–6413; by FAX at 

(202) 292–3771; or by e-mail at 

sarah.ayers@sba.gov. 

SUPPLEMENTARY INFORMATION: The SBA 

received a request on December 12, 

2006, to waive the Nonmanufacturer 

Rule for Re-Refining Used Petroleum 

Lubricating Oils (MIL–PRF–2104; Type 

10W, Type 15W40, Type 30W and Type 

40W) prompted by a Defense Supply 

Center Richmond (DSCR) solicitation. 

In response, on January 5, 2007, SBA 

published in the Federal Register, Vol. 

72, No. 3, a notice of intent to waive the 

Nonmanufacturer Rule for Re-Refining 

Used Petroleum Lubricating Oils (MIL–

PRF–2104; Type 10W, Type 15W40, 

Type 30W and Type 40W). SBA 

explained in the notice that it was 

soliciting comments and sources of 

small business manufacturers for the 

products described in the request. SBA 

received one comment. The commenter 

indicated that one company currently 

supplies re-refined engine oils to the 

Federal government, and this same 

company also supplies several 

distributors with re-refined lubricating 

oils. The commenter also indicated the 

knowledge of two other companies that 

have supplied re-refined lubricating oils 

to the Federal market within the last 24 

months. However, these companies did 

not wish to identify themselves or their 

contracting history to SBA for review. 

Based on SBA’s review of the comments 

received, and its further examination of 

the waiver request, SBA is denying the 

requested class waiver because it does 

not seek a waiver for a ‘‘class of 

products’’ within the contemplation of 

13 CFR 121.1202(d). In particular, a 

‘‘class of products’’ for purposes of the 

class waiver procedures provided in 13 

CFR 121.1204(a), is comprised of 

products within a ‘‘subdivision under a 

NAICS Industry Number.’’ See 13 CFR 

121.1202(d). By contrast, the individual 

waiver procedures under 13 CFR 

121.1204(b) apply when a request for a 

waiver of the Nonmanufacturer Rule is 

‘‘for a product in a specific solicitation.’’

See 13 CFR 121.1203. Since the instant 

request is ‘‘for a product in a specific 

solicitation,’’ it is governed by the 

procedures for an individual waiver 

under 13 CFR 121.1204(b). According to 

that provision, only a contracting officer 

may request an individual waiver for a 

specific solicitation. 

SBA is therefore denying the instant 

request for a class waiver because it 

constitutes a request for an ‘‘individual 

waiver for a product in a specific 

solicitation,’’ which must be initiated by 

a contracting officer pursuant to 13 CFR 

121.1204(b). 

Authority: 15 U.S.C. 637(a)(17). 

Arthur E. Collins, 

Acting Director for Government Contracting. 

[FR Doc. E7–7454 Filed 4–18–07; 8:45 am] 

BILLING CODE 8025–01–P 

DEPARTMENT OF STATE 

[Public Notice 5780] 

Bureau of Educational and Cultural 

Affairs (ECA) Request for Grant 

Proposals: Fellowships in the Visual 

Arts, Film, and Architecture and Urban 

Design 

Announcement Type: New 

Cooperative Agreement. 

Funding Opportunity Number: ECA/ 

PE/C/CU–07–60. 

Catalog of Federal Domestic 

Assistance Number: 00.000. 

Key Dates: 

Application Deadline: May 29, 2007. 

Executive Summary: The Bureau of 

Educational and Cultural Affairs will 

award up to three Cooperative 

Agreements to support programs for 

short residency and training programs 

in the United States for emerging and 

mid-career visual artists, film artists, 

and architecture and urban design 

professionals from selected countries. 

Each Cooperative Agreement may 

support artists from one or more of the 

three categories. The foreign 

participants will be nominated by the 

Public Affairs Sections of U.S. 

Embassies, in consultation with the 

grantee. Grantees will develop 30–60 

day programs in the United States for 

the nominated participants, 

individually or in small groups. Each 

program should be built around a 

residency experience, which may be 

supplemented by other program 

elements designed to enhance and 

expand upon the activities of the 

residency. The goal of each project is to 

increase cross-cultural understanding 

internationally by providing program 

participants with an in-depth exposure 

to their professional discipline as 

practiced in the United States; outreach 

to U.S. colleagues and publics, and 

opportunities for creation and 

exhibition of their work. 

I. Funding Opportunity Description: 

Authority: 

Overall grant making authority for 

this program is contained in the Mutual 

Educational and Cultural Exchange Act 

of 1961, Public Law 87–256, as 

amended, also known as the FulbrightHays Act. The purpose of the Act is ‘‘to 

enable the Government of the United 

States to increase mutual understanding 

between the people of the United States 

and the people of other countries * * *; 

to strengthen the ties which unite us 

with other nations by demonstrating the 

educational and cultural interests, 

developments, and achievements of the 

people of the United States and other 

nations * * * and thus to assist in the 


cprice-sewell on PROD1PC66 with NOTICES