27164 Federal Register / Vol. 72, No. 92 / Monday, May 14, 2007 / Notices 

13 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Cabinet orders were previously eligible for 

automated electronic trading on the PCX Plus 

system. NYSE Arca decommissioned the PCX Plus 

electronic trading system during the fourth quarter 

of 2006 and replaced it with the OX electronic 

trading system. As a result, the Exchange proposes 

to delete the name ‘‘PCX Plus’’ from the text of Rule 

6.80. At this time no issues have been designated 

for cabinet trading on OX or any other Exchange 

sponsored electronic system. 

(B) Institute proceedings to determine 

whether the proposed rule change 

should be disapproved. 

III. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

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

No. SR–NYSEArca–2007–22 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Nancy M. Morris, Secretary, 

Securities and Exchange Commission, 

Station Place, 100 F Street, NE., 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–NYSEArca–2007–22. 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 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–NYSEArca–2007–22 and 

should be submitted on or before June 

4, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.13

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–9177 Filed 5–11–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55723; File No. SR–

NYSEArca–2007–38] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change and Amendment No. 1 

Thereto Relating to Rule 6.80 

Governing Accommodation 

Transactions (Cabinet Trades) 

May 8, 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 17, 

2007, NYSE Arca, Inc. (‘‘NYSE Arca’’ or 

the ‘‘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 

substantially prepared by the Exchange. 

On May 7, 2007, NYSE Arca filed 

Amendment No. 1 to the proposed rule 

change. The Commission is publishing 

this notice to solicit comment 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 amend 

NYSE Arca Rule 6.80 governing 

Accommodation Transactions, also 

referred to as Cabinet Trades. The text 

of the proposed rule change is available 

at NYSE Arca, the Commission’s Public 

Reference Room, and http:// 

www.nysearca.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 

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 aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

An ‘‘accommodation’’ or ‘‘cabinet’’

trade refers to trades in listed options on 

the Exchange that may be considered 

worthless or which are not actively 

traded. Exchange Rule 6.80, 

Accommodation Transactions (Cabinet 

Trades), which sets forth specific 

procedures for engaging in cabinet 

trades, currently (i) permits cabinet 

trades to occur via open outcry at a 

cabinet price of $1 per option contract 

when the class does not trade on the 

NYSE Arca automated electronic trading 

system,3 and (ii) requires Market Makers 

and Floor Brokers who wish to conduct 

a cabinet transactions to place their 

orders with a Trading Official. 

The primary purpose of this rule 

change is to amend Exchange Rule 6.80 

to authorize Floor Brokers and Market 

Makers to initiate cabinet trades. Under 

the existing procedures, Market Makers 

and Floor Brokers are only permitted to 

(i) place cabinet orders with a Trading 

Official and (ii) respond at a cabinet 

price to a request for a quote from a 

Trading Official. Pursuant to the 

proposed amendment, Market Makers 

and Floor Brokers will also be permitted 

to initiate a cabinet trade in the trading 

crowd on their own, without the need 

to first place the order with a Trading 

Official. This will save the additional 

time and process involved in a Market 

Maker or Floor Broker needing to first 

place a cabinet order that they are 

initiating, with a Trading Official, who 

would then in turn represent and 

execute the order on behalf of the 

Market Maker or Floor Broker. 

Permitting Market Makers and Floor 

Brokers to initiate cabinet orders and 

trades on their own accord will provide 

Market Makers and Floor Brokers with 

additional flexibility and will facilitate 

the fair, orderly and efficient handling 

of cabinet transactions on the Exchange. 

Permitting Market Makers and Floor 

Brokers to represent cabinet orders is 


pwalker on PROD1PC71 with NOTICES
Federal Register / Vol. 72, No. 92 / Monday, May 14, 2007 / Notices 27165 

4See Securities Exchange Act Release No. 53808 

(May 16, 2006), 71 FR 29371 (May 22, 2006) (File 

no. SR–CBOE–2006–33) (permitting Floor Brokers 

to represent cabinet orders); Securities Exchange 

Act Release No. 55081 (January 10, 2007), 72 FR 

2317 (January 18, 2007) (File no. SR–CBOE–2007–

02) (permitting Market Makers to represent cabinet 

orders). 

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

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

7 15 U.S.C. 78s(b)(3)(A). 

8 17 CFR 240.19b–4(f)(6)(iii). Rule 19b–4(f)(6)(iii) 

requires the Exchange to give written notice to the 

Commission of its intent to file the proposed rule 

change at least five business days prior to filing. 

The Exchange complied with this requirement. 9 17 CFR 200.30–3(a)(12). 

similar to and consistent with Rule 6.54 

of the Chicago Board Option Exchange.4

The second purpose of this rule 

change is to make clear that Floor 

Brokers and Market Makers who enter 

into either opening or closing cabinet 

transactions may do so as long as they 

first yield priority to all corresponding 

orders in the cabinet book. Rule 6.80 

currently provides that all bids and 

offers for cabinet transactions, both 

opening and closing, must be placed 

with a Trading Official, and that 

opening orders must yield to closing 

orders in the cabinet. The Exchange 

now proposes that both opening and 

closing transactions may be represented 

by Floor Brokers and Market Makers, so 

long as they first yield priority to all 

corresponding orders in the cabinet. 

The Exchange also proposes to 

include a provision in Rule 6.80 stating 

that the rules governing cabinet trading 

do not apply to issues that trade as part 

of the Penny Pilot program. Although 

cabinet trades involve orders priced at 

$1 per option contract, the specific 

terms and conditions for cabinet trading 

are not applicable to option classes 

participating in the Penny Pilot. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

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

furthers the objectives of Section 6(b)(5) 

of the Act 6 in particular, in that it is 

designed to prevent fraudulent and 

manipulative acts and practices, to 

promote just and equitable principles of 

trade, to foster cooperation and 

coordination with persons engaged in 

facilitating transactions in securities, 

and to remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants or Others 

The Exchange has neither solicited 

nor received written comments on the 

proposed rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change (i) Does not significantly affect 

the protection of investors or the public 

interest; (ii) does not impose any 

significant burden on competition; and 

(iii) does not 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 7 and Rule 19b–4(f)(6)(iii) 

thereunder.8

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission may summarily abrogate 

such rule change if it appears to the 

Commission that such action is 

necessary or appropriate in the public 

interest, for the protection of investors, 

or otherwise in furtherance of the 

purposes of the Act. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

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

No. SR–NYSEArca–2007–38 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–NYSEArca–2007–38. This 

file number should be included on the 

subject line if e-mail is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commissions 

Internet Web site (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for inspection and copying in 

the Commission’s Public Reference 

Room. Copies of such filing 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–NYSEArca–2007–38 and 

should be submitted on or before June 

4, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.9

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–9195 Filed 5–11–07; 8:45 am] 

BILLING CODE 8010–01–P 

SMALL BUSINESS ADMINISTRATION 

[Disaster Declaration # 10866 and # 10867] 

Kansas Disaster # KS–00018 

AGENCY: U.S. Small Business 

Administration 

ACTION: Notice. 

SUMMARY: This is a Notice of the 

Presidential declaration of a major 

disaster for the State of Kansas ( FEMA–

1699–DR), dated 5/6/2007. 

Incident: Severe Storms, Tornadoes, 

and Flooding. 

Incident Period: 5/4/2007 and 

continuing. 

Effective Date: 5/6/2007. 

Physical Loan Application Deadline 

Date: 7/5/2007. 

Economic Injury (EIDL) Loan 

Application Deadline Date: 2/6/2008. 

ADDRESSES: Submit completed loan 

applications to: U.S. Small Business 


pwalker on PROD1PC71 with NOTICES