27610 Federal Register / Vol. 72, No. 94 / Wednesday, May 16, 2007 / Notices 

7 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Exchange Act Release No. 55517 (Mar. 23, 

2007), 72 FR 14842 (Mar. 29, 2007). 

4See Exchange Act Release No. 53382 (Feb. 27, 

2006), 71 FR 11251 (Mar. 6, 2006) (SR–NYSE–2005–

77). 5See Exchange Act Release No. 34–52579 (Oct. 7, 

2005), 70 FR 60119 (Oct. 14, 2005) (SR–NYSE–

2004–73). 6Rules and Regulations Implementing the 

Telephone Consumer Protection Act of 1991, FCC 

03–153 (Jun. 26, 2003), 68 FR 44144 (Jul. 25, 2003). 

7 Junk Fax Prevention Act of 2005, Pub. L. 109–

21, 119 Stat. 359 (2005). 

8FCC 06–42 (Apr. 5, 2006), 71 FR 56893 (Sept. 

28, 2006). 

9An established business relationship is defined 

as a prior existing relationship formed by voluntary 

two-way communication between a member 

organization and a person where the person has, 

generally speaking, done business with the member 

organization within the 18 months preceding the 

telephone call, the member organization is the 

broker-dealer of record for the person’s account 

within those 18 months, or the person has 

contacted the member organization to inquire about 

a product or service within the three months 

preceding the telephone call. 

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

11 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). 

12 15 U.S.C. 78s(b)(2). 

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 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–NFA–2007–02 and should 

be submitted on or before June 6, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.7

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–9371 Filed 5–15–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55735; File No. SR–NYSE–

2007–06] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC.; Order 

Approving Proposed Rule Change To 

Amend NYSE Rule 440A (‘‘Telephone 

Solicitations’’) 

May 10, 2007. 

I. Introduction 

On January 25, 2007, the New York 

Stock Exchange LLC (‘‘NYSE’’ or the 

‘‘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 

amend Rule 440A, addressing member 

organizations’ telephone solicitations of 

customers. The proposed rule change 

was published for comment in the 

Federal Register on March 29, 2007.3

The Commission received no comments 

on the proposal. This order approves the 

proposed rule change. 

II. Description of the Proposal 

NYSE Rule 440A generally addresses 

member organizations’ telephone 

solicitations of customers. Rule 440A(g) 

provides ‘‘No member or member 

organization may use a telephone 

facsimile machine, computer or other 

device to send an unsolicited 

advertisement to a telephone facsimile 

machine, computer or other device.’’

Subsection 440A(g)(1) further provides 

that a facsimile advertisement is not 

‘‘unsolicited’’ where the recipient has 

granted the member organization prior 

express invitation or permission to 

deliver the advertisement, as further 

defined in the Rule. This proposed rule 

change provided that such an 

advertisement also will not be 

considered ‘‘unsolicited’’ where there is 

an ‘‘established business relationship’’

as defined in the present Rule 440A(j). 

In addition, the Exchange proposed to 

delete the term ‘‘member’’ as used in the 

Rule to reflect the recent reorganization 

of the Exchange,4 and the term ‘‘allied 

member’’ as redundant within the 

context of the present regulation. 

The amendments to Rule 440A(g) 

were adopted by the Exchange on 

December 2, 2004 5 to incorporate 

regulations issued by the Federal 

Communications Commission (‘‘FCC’’) 

and the Federal Trade Commission 

(‘‘FTC’’) relating to the implementation 

of the National Do Not Call registry and 

the amendments to the Telephone 

Consumer Protection Act of 1991.6 The 

FCC and FTC regulations contained no 

exception for facsimiles sent to 

customers with which a broker-dealer 

had an ‘‘established business 

relationship’’ as such term was defined. 

Subsequently, Congress passed 

legislation 7 which restored an 

exemption for unsolicited faxes sent to 

a recipient with whom the sender had 

an established business relationship. 

Accordingly, the proposed amendments 

to NYSE Rule 440A(g)(1) added an 

exception for established business 

relationships to the definition of 

‘‘unsolicited’’ and set forth the measures 

necessary for a customer to opt out of 

the receipt of further communications. 

These standards, which are taken from 

applicable FCC regulations,8 generally 

require that the member organization 

and the person not only have an 

established business relationship,9 but 

also that the member organization 

obtain the fax number from the recipient 

(or the recipient’s web site, directory, or 

advertisement). Further, the recipient 

must not have stated on those materials 

that they do not accept unsolicited 

advertisements at the listed number. 

Under the proposed rule change, the 

member organization must also take 

reasonable steps to verify that the 

recipient consented to have the number 

listed. 

III. Discussion and Commission 

Findings 

After careful review, the Commission 

finds that the proposed rule change is 

consistent with the Act and, in 

particular, with Section 6(b)(5) of the 

Act, which requires, among other 

things, that the NYSE’s rules be 

designed to promote just and equitable 

principles of trade, and, in general, to 

protect investors and the public 

interest.10 The Commission believes 

that in bringing the NYSE’s Rule setting 

forth the definition and treatment of 

unsolicited telemarketing 

communications into concurrence with 

FCC regulations, the proposed rule 

change will harmonize currently 

disparate regulations and therefore 

provide greater clarity, both to members 

and customers, as to which 

communications between members and 

customers qualify as ‘‘unsolicited.’’ 11

IV. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act 12 that the 

proposed rule change (SR–NYSE–2007–

06), be, and hereby is, approved. 


cprice-sewell on PROD1PC66 with NOTICES
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 


cprice-sewell on PROD1PC66 with NOTICES