20656 Federal Register / Vol. 77, No. 66 / Thursday, April 5, 2012 / Notices 

1United States Postal Service Notice of Market 

Dominant Classification and Price Changes for 

Picture Permit Imprint Indicia, March 28, 2012 

(Notice). 

determination case files, memos, and 

forms. 

5. Department of Justice, Criminal 

Division (DAA–0060–2011–0010, 1 

item, 1 temporary items). Master files of 

an electronic information system used 

to track correspondence and 

administrative material. 

6. Department of Justice, Justice 

Management Division (DAA–0060– 

2011–0002, 2 items, 2 temporary items). 

Master files and outputs of an electronic 

information system used to report on 

performance metrics. 

7. Department of Justice, Office of 

Community Oriented Policing Services 

(DAA–0060–2011–0004, 1 item, 1 

temporary item). Master files of an 

electronic information system used to 

track financial reports for federal grants. 

8. Department of Transportation, 

Federal Railroad Administration (N1– 

399–08–11, 4 items, 3 temporary items). 

Inputs and outputs of an electronic 

information system containing source 

data and data exports created for 

specific requests on activities and 

events related to the rail network. 

Proposed for permanent retention are 

master files containing geographic 

information on the railroad network and 

mileposts. 

9. Department of the Treasury, 

Internal Revenue Service (N1–58–11–3, 

3 items, 3 temporary items). Master 

files, audit data, and documentation for 

an electronic information system used 

to control and track bank adjustment 

inventories. 

10. Social Security Administration, 

Office of Earnings, Enumeration, and 

Administrative Systems (N1–47–09–2, 2 

items, 1 temporary item). Master files of 

an electronic information system used 

to facilitate and manage the application 

and assignment of social security 

numbers. Proposed for permanent 

retention is a system output that 

includes biographical data on all social 

security card holders. 

Dated: March 29, 2012. 

Paul M. Wester, Jr., 

Chief Records Officer for the U.S. 

Government. 

[FR Doc. 2012–8174 Filed 4–4–12; 8:45 am] 

BILLING CODE 7515–01–P 

POSTAL REGULATORY COMMISSION 

[Docket No. R2012–7; Order No. 1302] 

Postal Service Classification and Price 

Adjustments 

AGENCY: Postal Regulatory Commission. 

ACTION: Notice. 

SUMMARY: The Commission is noticing a 

recently-filed Postal Service notice 

announcing its intent to implement 

Picture Permit Imprint Indicia as priced 

categories for First-Class Mail and 

Standard Mail letters and cards. This 

notice addresses procedural steps 

associated with this filing. 

ADDRESSES: Submit comments 

electronically by accessing the ‘‘Filing 

Online’’ link in the banner at the top of 

the Commission’s Web site (http:// 

www.prc.gov) or by directly accessing 

the Commission’s Filing Online system 

at https://www.prc.gov/prc-pages/filingonline/login.aspx. Commenters who 

cannot submit their views electronically 

should contact the person identified in 

the FOR FURTHER INFORMATION CONTACT

section as the source for case-related 

information for advice on alternatives to 

electronic filing. 

DATES: Comments are due: April 17, 

2012. 

FOR FURTHER INFORMATION CONTACT: 

Stephen L. Sharfman, General Counsel, 

at 202–789–6820 (case-related 

information) or DocketAdmins@prc.gov 

(electronic filing assistance). 

SUPPLEMENTARY INFORMATION: 

Table of Contents 

I. Introduction 

II. Postal Service Filing 

III. Commission Action 

IV. Ordering Paragraphs 

I. Introduction 

On March 28, 2012, the Postal Service 

filed a notice with the Commission 

announcing its intent to implement 

Picture Permit Imprint Indicia as price 

categories for First-Class Mail and 

Standard Mail letters and cards 

pursuant to 39 U.S.C. 3622 and 39 CFR 

3010.1 The classification and price 

adjustment will permit certain images, 

such as corporate or product logos, to be 

placed in the permit indicia area of 

First-Class and Standard Mail letters 

and cards (Adjustment). Id. at 2. The 

adjustment is proposed to take effect at 

12:01 a.m. on June 24, 2012. Id. at 1. 

II. Postal Service Filing 

Picture Permit Imprint Indicia 

category. The Postal Service plans to 

implement Picture Permit Imprint 

Indicia as a price category for First-Class 

Mail and Standard Mail letters and 

cards. Id. at 2. The Postal Service states 

that, in response to customer requests to 

use corporate or product logos in this 

area of the envelope, it has developed 

guidelines, requirements, and other 

specifications for the use of images on 

the permit indicia area of the mailpiece. 

Id. It asserts that the Picture Permit 

Imprint Indicia is an innovative use for 

the permit indicia space that affords 

prospective customers the opportunity 

and ability to brand and advertise their 

products and services on the mailpiece. 

Id. It states that such mailpieces have 

been tested in the mailstream, and it 

believes that limited use of the permit 

indicia space of the mailpiece should be 

permitted at an appropriate price. Id. at 

3. 

The Postal Service states that the 

Adjustment is designed to help keep 

mailers using the mail, increase the 

interest of mail recipients in the mail 

they receive, and generate higher 

revenue through a per-piece charge over 

and above postage. Id. Market research 

by the Postal Service indicates that most 

mailers would use Picture Permit 

imprints for existing volume, although 

some said that they would increase their 

mailing volume. Id. Nine percent of 

First-Class Mail commercial customers 

and 12 percent of Standard Mail 

customers responded that they would be 

willing to pay a small premium to use 

Picture Permit imprints. Id. The Postal 

Service will charge an additional one 

cent per piece for First-Class Mail and 

two cents per piece for Standard Mail 

for the use of Picture Permit imprints. 

Id. It will require all mailings to be FullService Intelligent Mail barcodes, with 

each Picture Permit imprint to be 

approved by the Postal Service. Id. Mail 

customers will be responsible to defend 

against all legal charges for use of the 

image. Id. 

Impact on the price cap. The Postal 

Service states that the planned prices 

have no impact on price cap issues 

because they do not change the prices 

for any existing First-Class Mail or 

Standard Mail price categories. Id. 

Therefore, it made no cap or price 

change calculations as described in 

rules 3010.14(b)(1) through (4). Id. 

Objectives and factors, workshare 

discounts, and preferred rates. The 

Postal Service lists the relevant 

objectives and factors of 39 U.S.C. 3622, 

and claims the Adjustment does not 

substantially alter the degree to which 

First-Class Mail and Standard Mail 

prices already address the objectives 

and factors. Id. at 4–8. In particular, the 

Postal Service contends that the 

Adjustment is an example of the 

increased pricing flexibility under the 

Postal Accountability and Enhancement 

Act (objective 4), and will encourage 

new mail volumes, which will have the 

effect of enhancing the financial 

position of the Postal Service (objective 

5). Id. at 7, 8. Similarly, the Postal 

Service claims that the Adjustment 


Tkelley on DSK3SPTVN1PROD with NOTICES
Federal Register / Vol. 77, No. 66 / Thursday, April 5, 2012 / Notices 20657 

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

2 17 CFR 240.19b–4. 

3 17 CFR 240.19b–4(f)(6). 

4PSX is the Exchange’s cash equities market 

electronic trading platform. 

encourages increased mail volume 

(factor 7) and, by charging for an 

attractive new option that does not 

increase the Postal Service costs 

significantly, will help First-Class and 

Standard Mail cover attributable costs 

(factor 2). Id. 

Workshare discounts. According to 

the Postal Service, the Adjustment will 

not impact current workshare discounts. 

Id. at 8. 

Preferred rates. The same prices for 

Picture Permit Imprints will apply to 

Nonprofit pieces entered as Standard 

Mail High Density and Saturation 

Letters, Carrier Route, and Letters. Id. 

Based on the limited volumes expected 

to use this price category, the Postal 

Service expects that the ratio between 

nonprofit and commercial prices will 

remain close to 60 percent, thus meeting 

the statutory requirement in 39 U.S.C. 

3626(a)(6). 

Mail Classification Schedule (MCS). 

The Postal Service provides proposed 

MCS language in Appendix A of its 

Notice. 

III. Commission Action 

The Commission establishes Docket 

No. R2012–7 to consider all matters 

related to the Notice. The Commission’s 

rules provide for a 20-day comment 

period starting from the date of the 

filing of the Notice. See 39 CFR 

3010.13(a)(5). Interested persons may 

express views and offer comments on 

whether the planned changes are 

consistent with the policies of 39 U.S.C. 

3622 and 39 CFR part 3010. Comments 

are due no later than April 17, 2012. 

The Commission appoints Katalin K. 

Clendenin to represent the interests of 

the general public in this proceeding. 

IV. Ordering Paragraphs 

It is ordered: 

1. The Commission establishes Docket 

No. R2012–7 to consider matters raised 

by the Postal Service’s March 28, 2012 

Notice. 

2. Interested persons may submit 

comments on the planned price category 

implementation. Comments are due no 

later than April 17, 2012. 

3. Pursuant to 39 U.S.C. 505, Katalin 

K. Clendenin is appointed to serve as an 

officer of the Commission (Public 

Representative) to represent the 

interests of the general public in this 

proceeding. 

4. The Secretary shall arrange for 

publication of this notice in the Federal 

Register. 

By the Commission. 

Shoshana M. Grove, 

Secretary. 

[FR Doc. 2012–8161 Filed 4–4–12; 8:45 am] 

BILLING CODE 7710–FW–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66697; File No. SR–Phlx– 

2012–39] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Related to NonDisplay of Primary Pegged Orders With 

an Offset Amount 

March 30, 2012. 

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 March 23, 

2012, NASDAQ OMX PHLX LLC 

(‘‘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 

prepared by the Exchange. The 

Exchange has designated the proposed 

rule change as constituting a rule 

change under Rule 19b–4(f)(6) under the 

Act,3 which renders the proposal 

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 provide 

amend Exchange Rule 3301(f)(4) to 

provide for non-display of Primary 

Pegged Orders with an offset amount. 

The text of the proposed rule change is 

available at: http:// 

www.nasdaqtrader.com/ 

micro.aspx?id=PHLXRulefilings, at the 

Exchange’s principal office, and at the 

Commission’s Public Reference Room. 

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 those 

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 

Phlx proposes to amend Rule 

3301(f)(4) to provide that Primary 

Pegged Orders with an offset amount 

will be non-displayed, a change that 

will improve system and inter-market 

price stability. Pegged Orders are orders 

that, once entered, adjust in price 

automatically, in response to changes in 

the inside bids or offers of NASDAQ 

OMX PSX (‘‘PSX’’) 4 or the national 

market system, depending upon the 

type of Pegged Order. A Primary Pegged 

Order specifies that its price will equal 

the inside quote on the same side of the 

market; a Market Pegged Order will 

equal the inside quote on the opposite 

side of the market. A Midpoint Peg 

Order will equal the midpoint of the 

national best bid and offer (‘‘NBBO’’), 

excluding the effect that the Midpoint 

Peg Order itself has on the inside bid or 

inside offer. As the bids and offers 

change, so move the Pegged Orders. A 

Pegged Order may have a limit price 

beyond which the order shall not be 

executed. Primary Peg and Market Peg 

Orders may establish their pricing 

relative to the appropriate bids or offers 

by selecting one or more offset amounts 

that will adjust the price of the order by 

the offset amount selected. 

Under the Exchange’s current rule, 

Midpoint Pegged Orders are not 

displayed, while Primary and Market 

Pegged Orders may be displayed or not 

displayed, at the option of the person 

placing the order. The display of 

Primary Pegs with an offset amount can 

potentially result in excessive 

messaging when multiple venues 

display Pegged non-marketable Orders. 

In these scenarios, it is possible for the 

Primary Pegged Orders on each venue to 

react to and change in relation to each 

other, resulting in excessive messaging 

and ‘‘quote flickering.’’ A rule change to 

eliminate display of Primary Pegged 

Orders with an offset amount will 

prevent this feedback loop, adding to 

system stability and improving market 

quality. 

Market participants retain the ability 

to display orders through other order 

options available under the Exchange 

rules, including by using Primary 

Pegged Orders without an offset amount 

or Market Pegged Orders. Because 

Primary Pegged Orders without an offset 

amount are priced at the inside quote, 

they do not present the same messaging 


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