Federal Register / Vol. 72, No. 94 / Wednesday, May 16, 2007 / Notices 27611 

13 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 55564 

(March 30, 2007), 72 FR 16844. 

4 In approving the 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). 

5 15 U.S.C. 78f(b)(4). 

6See Securities Exchange Act Release No. 54007 

(June 16, 2006), 71 FR 36155 (June 23, 2006) (SR–

PCX–2006–16). 

7 15 U.S.C. 78s(b)(2). 

8 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. E7–9366 Filed 5–15–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55738; File No. SR–

NYSEArca–2007–17] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Order Granting Approval of 

a Proposed Rule Change To Waive 

2007 Annual Listing Fees for Certain 

Dually-Listed Issuers Who Delist 

During 2007 

May 10, 2007. 

I. Introduction 

On March 6, 2007, NYSE Arca, Inc. 

(‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’), pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Act’’) 1 and Rule 19b–4 

thereunder,2 a proposed rule change to 

waive 2007 annual listing fees for 

certain issuers listed on the Exchange. 

The proposed rule change was 

published for comment in the Federal 

Register on April 5, 2007.3 The 

Commission received no comments on 

the proposal. This order approves the 

proposed rule change. 

II. Description of the Proposal 

The Exchange, through its whollyowned subsidiary NYSE Arca Equities, 

Inc. (‘‘NYSE Arca Equities’’), proposes 

to waive 2007 annual listing fees for any 

issuers, who, as of January 1, 2007, were 

dually-listed on NYSE Arca Equities 

and another securities exchange, 

provided that such dually-listed issuers 

provide notice to the Exchange by June 

30, 2007 of their intention to voluntarily 

withdraw listing from NYSE Arca 

Equities and that such dually-listed 

issuers withdraw listing before 

December 31, 2007. 

III. Discussion 

After a careful review of the proposed 

rule change, the Commission finds that 

the proposed rule change is consistent 

with the requirements of the Act and the 

regulations thereunder applicable to a 

national securities exchange.4 In 

particular, the Commission believes that 

the proposed rule change is consistent 

with Section 6(b)(4) of the Act,5 which 

requires that the rules of an exchange 

provide for the equitable allocation of 

reasonable dues, fees, and other charges 

among members and issuers and other 

persons using any facilities or system 

which it operates or controls. 

The Commission notes that the 

Exchange increased its annual listing 

fees substantially as of January 1, 2007.6

The Exchange represented that as a 

result, many dually-listed issuers 

notified the Exchange of their intent to 

voluntarily delist from NYSE Arca 

Equities prior to January 1, 2007. Some 

dually-listed issuers, however, were 

unable to voluntarily delist by January 

1, 2007, due to their administrative or 

corporate governance process. The 

proposal will permit such dually-listed 

issuers, as well as any other duallylisted issuers who comply with the 

proposal’s requirements, a reasonable 

period of time to comply with their 

administrative or corporate governance 

process to voluntarily delist from NYSE 

Arca Equities without paying the higher 

2007 annual listing fees. The 

Commission believes that it is 

appropriate to waive the 2007 annual 

listing fees for the withdrawing duallylisted issuers because these issuers fully 

intend to withdraw their listing, must 

withdraw by December 31, 2007, and 

are already listed on another national 

securities exchange. Based on the above, 

the Commission believes that such 

waiver is consistent with the 

requirements of the Act. 

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,7 that the 

proposed rule change (SR–NYSEArca–

2007–17) be, and hereby is, approved. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.8

J. Lynn Taylor, 

Assistant Secretary. 

[FR Doc. E7–9411 Filed 5–15–07; 8:45 am] 

BILLING CODE 8010–01–P 

SMALL BUSINESS ADMINISTRATION 

SBA Lender Risk Rating System 

AGENCY: Small Business Administration. 

ACTION: Final notice. 

SUMMARY: This final notice implements 

the Small Business Administration’s 

(SBA’s) risk rating system (Risk Rating 

System) as an internal tool to assist SBA 

in assessing the risk of each active 7(a) 

Lender’s and Certified Development 

Company’s (CDC’s) SBA loan operations 

and loan portfolio. The Risk Rating 

System will enable SBA to monitor 7(a) 

Lenders and CDCs (collectively, ‘‘SBA 

Lenders’’) on a uniform basis and 

identify those institutions whose SBA 

loan operations and portfolio require 

additional SBA monitoring or other 

action. It is also a vehicle for assessing 

the aggregate strength of SBA’s 7(a) and 

504 portfolios. Under the Risk Rating 

System, SBA will assign each SBA 

Lender a composite rating based on 

certain portfolio performance factors, 

which may be overridden in some cases 

due to SBA Lender specific factors that 

may be indicative of a higher or lower 

level of risk. SBA Lenders will have 

access to their own ratings through 

SBA’s Lender Portal (Portal). 

DATES: This notice is effective June 15, 

2007. 

FOR FURTHER INFORMATION CONTACT: 

Bryan Hooper, Director, Office of Lender 

Oversight, U.S. Small Business 

Administration, 409 Third Street, SW., 

Washington, DC 20416, (202) 205–3049. 

SUPPLEMENTARY INFORMATION: 

Background Information 

On May 1, 2006, SBA published a 

notice and request for comment in the 

Federal Register seeking comments on a 

proposed SBA internal Risk Rating 

System for assessing an SBA Lender’s 

SBA loan portfolio (i.e., loan portfolio 

performance). 71 FR 25624 Notice. SBA 

published a subsequent notice 

extending the comment period for the 

proposed Risk Rating System to July 15, 

2006. 71 FR 34674. The Risk Rating 

System is an internal tool that uses data 

in SBA’s Loan and Lender Monitoring 

System (L/LMS) to assist SBA in 

assessing the risk of an SBA Lender’s 

SBA loan performance on a uniform 

basis and identify those SBA Lenders 

whose portfolio performance 

demonstrate the need for additional 

SBA monitoring or other action. The 

Risk Rating System will also serve as a 

vehicle to measure the aggregate 

strength of SBA’s overall 7(a) and 504 

loan portfolios and to assist SBA in 

managing the related risk. In addition, 

SBA will use risk ratings to make more 


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