Federal Register / Vol. 72, No. 83 / Tuesday, May 1, 2007 / Notices 23879 

47 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). 

4 17 CFR 240.19b–4(f)(6). 

5 The Pilot Program was initially approved by the 

Commission on June 11, 2003, and extended until 

June 5, 2007. See Securities Exchange Act Release 

Nos. 48013 (June 11, 2003), 68 FR 35933 (June 17, 

2003) (SR–Phlx–2002–55) (‘‘Phlx Approval Order’’); 

49801 (June 3, 2004), 69 FR 32652 (June 10, 2004) 

(SR–Phlx–2004–38); 51768 (May 31, 2005), 70 FR 

33250 (June 7, 2005) (SR–Phlx–2005–35); and 

53938 (June 5, 2006), 71 FR 34178 (June 13, 2006) 

(SR–Phlx–2006–36) (collectively, ‘‘Phlx Pilot 

Extensions’’). The other options exchanges have 

similar $1 strike price listing pilot programs that 

were likewise extended through June 5, 2007. See 

Securities Exchange Act Release Nos. 53843 (May 

19, 2006), 71 FR 30455 (May 26, 2006) (SR–Amex– 

2006–49); 53885 (May 24, 2006), 71 FR 30973 (May 

31, 2006) (SR–BSE–2006–19); 53805 (May 15, 

2006), 71 FR 29690 (May 23, 2006) (SR–CBOE– 

2006–31); 53806 (May 15, 2006), 71 FR 29694 (May 

23, 2006) (SR–ISE–2006–20); and 53807 (May 15, 

2006), 71 FR 29373 (May 22, 2006) (SR–NYSEArca– 

2006–14). 

6 See Phlx Approval Order and Phlx Pilot 

Extensions, supra note 5. 7 Phlx continues to list the $1 strike prices in the 

options classes that it initially chose for the Pilot 

Program: TYCO International, LTD (TYC), Micron 

Tech. (MU), Oracle Co. (ORQ), Brocade Comm. 

(UBF), and Juniper Networks (JUP). Because TYC is 

presently trading outside the strike price range 

permissible in the Pilot Program, however, it is not 

trading at $1 strike price intervals. 

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 Nasdaq. 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–NASDAQ–2006–065 and 

should be submitted on or before May 

22, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.47

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–8252 Filed 4–30–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55666; File No. SR–Phlx– 

2007–29] 

Self-Regulatory Organizations; 

Philadelphia Stock Exchange, Inc.; 

Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change Relating to Extension of the $1 

Strike Pilot Program 

April 25, 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 April 16, 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, II, and 

III below, which Items have been 

substantially prepared by Phlx. The 

Exchange has filed the proposal as a 

‘‘non-controversial’’ rule change 

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

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

which renders it effective upon filing 

with the Commission. The Commission 

is publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend 

Commentary .05 to Exchange Rule 1012 

in order to extend for a period of one 

year a pilot program that allows the 

Exchange to list options classes 

overlying five individual stocks with 

strike price intervals of $1.00 where, 

among other things, the underlying 

stock closes below $20.00 on the 

primary market trading it on the day 

before selection by the Exchange to list 

pursuant to the pilot, and the Exchange 

can list $1.00 strike prices on any 

options classes specifically designated 

by other securities exchanges that 

employ a similar pilot program under 

their rules (‘‘Pilot Program’’).5 The text 

of the proposed rule change is available 

at Phlx, the Commission’s Public 

Reference Room, and 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, 

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. 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 extend the Pilot Program for 

one year until June 5, 2008, so that the 

Exchange may continue to list options at 

$1.00 strike price intervals within the 

parameters specified in Commentary .05 

to Phlx Rule 1012. 

The Commission approved the Pilot 

Program allowing the listing of strike 

prices for options at $1.00 intervals for 

securities trading under $20.00, and 

extended it through June 5, 2007.6 The 

Exchange is proposing to extend the 

Pilot Program for a period of one year, 

through June 5, 2008. The Pilot Program 

will remain unchanged such that 

pursuant to it Phlx can establish $1 

strike price intervals on options classes 

overlying no more than five individual 

stocks designated by the Exchange 

where the underlying stock closes below 

$20.00 on its primary market on the 

trading day before selection by the 

Exchange to list pursuant to the Pilot 

Program; the $1.00 strike price is from 

$3.00 to $20.00; the $1.00 strike price is 

no more than $5.00 from ($5.00 above 

or below) the closing price of the 

underlying stock on the preceding day; 

the $1.00 strike price will not be listed 

within $0.50 of an existing $2.50 strike 

price within the same series; and the 

$1.00 strike price will not be applied to 

Long-Term Equity AnticiPation 

Securities. And, pursuant to the Pilot 

Program, the Exchange can multiply list 

those option classes specifically 

designated to be listed at $1.00 strike 

prices by other options exchanges that 

have similar $1.00 pilot programs 

pursuant to their own rules. 

In July 2003, Phlx chose and listed 

five options classes with $1 strike price 

intervals, thereafter listed on a multiple 

listing basis $1 strike prices options 

classes that were listed by other options 

exchanges pursuant to their $1 strike 

price pilot programs, and currently lists 

22 options classes with $1 strike prices.7

The Exchange continues to believe that 

the ability to list stocks at $1 strike price 

intervals pursuant to the Pilot Program 

has given investors flexibility and the 

opportunity to more closely and 


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23880 Federal Register / Vol. 72, No. 83 / Tuesday, May 1, 2007 / Notices 

8 See Phlx Pilot Extensions, supra note 5. 

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

10 15 U.S.C. 78f(b)(5). 

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

12 17 CFR 240.19b–4(f)(6). Rule 19b–4(f)(6) also 

requires the self-regulatory organization to give the 

Commission 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. Phlx has satisfied the five-day prefiling requirement. As set forth in the Commission’s 

initial approval of the Pilot Program, if Phlx 

proposes to: (1) Extend the Pilot Program; (2) 

expand the number of options eligible for inclusion 

in the Pilot Program; or (3) seek permanent 

approval of the Pilot Program, it must submit a Pilot 

Program Report to the Commission along with the 

filing of its proposal to extend, expand, or seek 

permanent approval of the Pilot Program. Phlx must 

file any proposal to expand or seek permanent 

approval of the Pilot Program and the Pilot Program 

Report with the Commission at least 60 days prior 

to the expiration of the Pilot Program. The Pilot 

Program Report must cover the entire time the Pilot 

Program was in effect and must include: (1) Data 

and written analysis on the open interest and 

trading volume for options (at all strike price 

intervals) selected for the Pilot Program; (2) delisted 

options series (for all strike price intervals) for all 

options selected for the Pilot Program; (3) an 

assessment of the appropriateness of $1 strike price 

intervals for the options Phlx selected for the Pilot 

Program; (4) an assessment of the impact of the 

Pilot Program on the capacity of Phlx’s, OPRA’s, 

and vendors’ automated systems; (5) any capacity 

problems or other problems that arose during the 

operation of the Pilot Program and how Phlx 

addressed them; (6) any complaints that Phlx 

received during the operation of the Pilot Program 

and how Phlx addressed them; and (7) any 

additional information that would help to assess the 

operation of the Pilot Program. See Phlx Approval 

Order, supra note 5. 

effectively tailor their options 

investments to the price of the 

underlying stock and has allowed the 

Exchange to take advantage of 

competitive opportunities to list options 

at $1.00 strike prices. Furthermore, the 

Exchange has not detected any material 

proliferation of illiquid options series 

resulting from the Pilot Program. 

In the Phlx Pilot Extensions, the 

Commission indicated that if Phlx 

sought to extend, expand, or request 

permanent approval of the Pilot 

Program, it would be required to 

include a Pilot Program Report with its 

filing.8 Phlx’s Pilot Program Report 

(‘‘Report’’), included as Exhibit 3 to the 

proposal, reviews the Exchange’s 

experience with the Pilot Program. 

According to Phlx, the Report clearly 

supports the Exchange’s belief that 

extension of the Pilot Program is proper. 

Among other things, Phlx believes that 

the Report shows the strength and 

efficacy of the Pilot Program on the 

Exchange, as reflected by the increase in 

the percentage of $1 strikes in 

comparison to total options volume 

traded on Phlx at $1 strike price 

intervals as compared to other options 

volume and the continuing robust open 

interest of options traded on Phlx at $1 

strike price intervals. Phlx believes that 

the Report establishes that the Pilot 

Program has not created and in the 

future should not create capacity 

problems for the systems of the 

Exchange or the Options Price Reporting 

Authority (‘‘OPRA’’), and explains that 

most delistings of $1 strike price options 

series occurred to ensure that the 

chosen $1 strike price issues remained 

within the parameters of the Pilot 

Program. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with Section 

6(b) of the Act,9 in general, and furthers 

the objectives of Section 6(b)(5),10

specifically, in that it is designed to 

perfect the mechanism of a free and 

open market and a national market 

system, to protect investors and the 

public interest, and to promote just an 

equitable principles of trade. Phlx 

believes the proposal would achieve 

this by allowing the continued listing of 

options at $1.00 strike price intervals 

within certain parameters, thereby 

stimulating customer interest in options 

overlying the lowest tier of stocks and 

creating greater trading opportunities 

and flexibility and providing customers 

with the ability to more closely tailor 

investment strategies to the precise 

movement of the underlying stocks. 

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 

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

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 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 

<bullet≤ Use the Commission’s 

Internet comment form (http:// 

www.sec.gov/rules/sro.shtml); or 

<bullet≤ Send an e-mail to rulecomments@sec.gov. Please include File 

No. SR–Phlx–2007–29 on the subject 

line. 

Paper Comments 

<bullet≤ 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–Phlx–2007–29. 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 will also be 

available for inspection and copying at 

the principal office of 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 No. 

SR–Phlx–2007–29 and should be 

submitted on or before May 22, 2007. 


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Federal Register / Vol. 72, No. 83 / Tuesday, May 1, 2007 / Notices 23881 

13 17 CFR 200.30–3(a)(12). 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.13

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–8257 Filed 4–30–07; 8:45 am] 

BILLING CODE 8010–01–P 

SMALL BUSINESS ADMINISTRATION 

[Disaster Declaration ● 10851] 

Maine Disaster ● ME–00006 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Notice. 

SUMMARY: This is a Notice of the 

Presidential declaration of a major 

disaster for Public Assistance Only for 

the State of Maine (FEMA–1691–DR), 

dated 4/20/2007. 

Incident: Flooding. 

Incident Period: 3/16/2007 through 3/ 

18/2007. 

DATES: Effective Date: 4/20/2007. 

Physical Loan Application Deadline 

Date: 6/19/2007. 

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 

President’s major disaster declaration on 

4/20/2007, Private Non-Profit 

organizations that provide essential 

services of a governmental nature may 

file disaster loan applications 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: 

Hancock, Knox, Lincoln, Waldo. 

The Interest Rates are: 

I Percent 

Other (Including Non-Profit Organizations) with Credit Available 

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

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

The number assigned to this disaster 

for physical damage is 10851. 

Catalog of Federal Domestic Assistance 

Number 59008). 

Herbert L. Mitchell, 

Associate Administrator for Disaster 

Assistance. 

[FR Doc. E7–8247 Filed 4–30–07; 8:45 am] 

BILLING CODE 8025–01–P 

TRADE AND DEVELOPMENT AGENCY 

SES Performance Review Board 

AGENCY: Trade and Development 

Agency. 

ACTION: Notice. 

SUMMARY: Notice is hereby given of the 

appointment of members of the Trade 

and Development Agency’s Performance 

Review Board. 

FOR FURTHER INFORMATION CONTACT: 

Carolyn Hum, Administrative Officer, 

Trade and Development Agency, 1000 

Wilson Boulevard, Suite 1600, 

Arlington, VA 22209 (703) 875–4357. 

SUPPLEMENTARY INFORMATION: Section 

4314(c)(1) through (5), U.S.C., requires 

each agency to establish, in accordance 

with regulations prescribed by the 

Office of Personnel Management, one or 

more SES performance review boards. 

The board shall review and evaluate the 

initial appraisal of a senior executive’s 

performance by the supervisor, along 

with any recommendations to the 

appointing authority relative to the 

performance of the senior executive. 

The following have been selected as 

acting members of the Performance 

Review Board of the Trade and 

Development Agency: Leocadia Zak, 

Deputy Director, U.S. Trade and 

Development Agency; Geoffrey Jackson, 

Director for Policy and Program, U.S. 

Trade and Development Agency; 

Thomas Hardy, Chief of Staff, U.S. 

Trade and Development Agency; and 

James Wilderotter, General Counsel, 

U.S. Trade and Development Agency. 

Dated: April 25, 2007. 

Carolyn Hum, 

Administrative Officer. 

[FR Doc. E7–8294 Filed 4–30–07; 8:45 am] 

BILLING CODE 8040–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Highway Administration 

Environmental Impact Statement: State 

Route 71, South Knoxville Boulevard, 

From Governor John Sevier Highway 

(State Route 168) to Moody Avenue, 

Knox County, TN 

AGENCY: Federal Highway 

Administration (FHWA), DOT. 

ACTION: Notice of intent. 

SUMMARY: The Federal Highway 

Administration (FHWA) is issuing this 

notice to advise the public that an 

Environmental Impact Statement (EIS) 

will be prepared for a proposed highway 

project in Knox County, Tennessee. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Karen M. Brunelle, Planning and 

Program Management Team Leader, 

Federal Highway Administration— 

Tennessee Division Office, 640 

Grassmere Park Road, Suite 112, 

Nashville, TN 37211. 615–781–5772. 

SUPPLEMENTARY INFORMATION: A Final 

EIS (FEIS) was approved for the South 

Knoxville Boulevard project on June 24, 

1977. That FEIS covered a project that 

started at Chapman Highway (U.S. 441/ 

SR–71) near Longvale Drive and 

extended northward to State Route 158 

(the Central Business District (CBD) 

Loop) in Knoxville. The segment of that 

project from the CBD Loop southward to 

Moody Avenue has been constructed as 

a four-lane, median divided freeway 

section, and opened to traffic. 

Construction plans were prepared for 

the approved alignment from Moody 

Avenue southward to Old Sevierville 

Pike, but this part of the project has not 

been constructed. The segment of the 

approved South Knoxville Boulevard 

alignment between Old Sevierville Pike 

and Chapman Highway was 

subsequently determined to have 

engineering constraints due to several 

sinkholes along the route. 

An Environmental Assessment (EA) 

was prepared to address an alternate 

alignment between Old Sevierville Pike 

and Chapman Highway. The EA was 

approved by the FHWA on April 25, 

2001. A Corridor and Design Public 

Hearing was conducted on July 31, 

2001. A final environmental decision 

document was not issued. In the spring 

of 2003, the Tennessee Department of 

Transportation (TDOT) commissioned 

the University of Tennessee Center for 

Transportation to review fifteen 

proposed TDOT projects across the 

state. The James White Parkway (also 

known as South Knoxville Boulevard) 

Extension was included in those 

projects. Based on the results of this 


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