Federal Register / Vol. 74, No. 67 / Thursday, April 9, 2009 / Notices 16249 

5 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3OFPAs are discussed in Rule 970, which sets 

forth the criteria for the imposition of a fine (not 

to exceed $5,000) on any member, member 

organization, or any partner, officer, director or 

person employed by or associated with any member 

or member organization, for any violation of an 

OFPA, which violation the Exchange determined is 

minor in nature (known as the ‘‘Minor Rule Plan’’). 

Such a fine would be imposed in lieu of 

commencing a ‘‘disciplinary proceeding’’ as that 

term is used in Exchange Rules 960.1–960.12, and 

would be subject to Rule 19d–1 under the Act. 

4Certain changes proposed in the present filing 

may be affected by SR–Phlx–2009–17, which is 

pending. See Securities Exchange Act Release No. 

59538 (March 9, 2009), 74 FR 11152 (March 16, 

2009). We would amend the present filing if 

necessary upon approval of SR–Phlx–2009–17. 

volume options classes that trade in the 

Exchange’s Second Market. Further, no 

other exchange requires its market 

makers to participate in the opening 

rotation in 100% of the series in options 

classes in which it makes a market. For 

the foregoing reasons, this rule filing 

qualifies for immediate effectiveness as 

a ‘‘non-controversial’’ rule change under 

paragraph (f)(6) of Rule 19b–4 of the 

Act, as it does not raise any new, unique 

or substantive issues, and is beneficial 

for competitive purposes and to 

promote a free and open market for the 

benefit of investors. 

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 

Number SR–ISE–2009–15 on the subject 

line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–1090. 

All submissions should refer to File 

Number SR–ISE–2009–15. 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, on official business days between 

the hours of 10 a.m. and 3 p.m. 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–ISE– 

2009–15 and should be submitted on or 

before April 30, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.5

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–8066 Filed 4–8–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59697; File No. SR–Phlx– 

2009–23] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX, Inc.; Notice of 

Filing of a Proposed Rule Change and 

Amendment No. 1 Thereto To Amend 

the By-Laws, Rules and Option Floor 

Procedure Advices of NASDAQ OMX 

PHLX, Inc. 

April 2, 2009. 

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 13, 

2009, NASDAQ OMX PHLX, Inc. 

(‘‘Phlx’’ or the ‘‘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. 

On March 25, 2009, Phlx filed 

Amendment No. 1 to the proposed rule 

change. The Commission is publishing 

this notice to solicit comments 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 its 

By-Laws, Rules of the Board of 

Governors and Options Rules (the two 

sets of rules are together known as the 

‘‘Rules’’), and Option Floor Procedure 

Advices (‘‘OFPAs’’ or ‘‘Advices’’) 3 to 

make changes to certain standing 

committees and processes of the 

Exchange. Specifically, the Exchange 

proposes to eliminate: (a) The 

Admissions Committee; (b) the Options 

Allocation, Evaluation and Securities 

Committee; (c) the Options Committee; 

(d) the Foreign Currency Options 

Committee; and (e) the Weekly Bulletin. 

Additionally, the Exchange proposes to: 

(a) make the Finance Committee 

optional; (b) change the structure of the 

Business Conduct Committee and 

eliminate reference to the Hearing 

Officer; and (c) authorize action in the 

event of an emergency or extraordinary 

market conditions.4

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http:// 

nasdaqomxphlx.cchwallstreet.com/ 

NASDAQOMXPHLX/Filings/, at the 

principal office of the Exchange, 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 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. 


dwashington3 on PROD1PC60 with NOTICES
16250 Federal Register / Vol. 74, No. 67 / Thursday, April 9, 2009 / Notices 

5On July 24, 2008, NASDAQ OMX acquired all 

of the common stock of the Exchange, which 

became a wholly owned subsidiary of NASDAQ 

OMX. The Exchange has continued to operate as a 

separate self-regulatory organization (‘‘SRO’’). See 

Securities Exchange Act Release No. 58179 (July 17, 

2008), 73 FR 42874 (July 23, 2008) (SR–Phlx–2008– 

31). See also Securities Exchange Act Release No. 

58183 (July 17, 2008), 73 FR 42850 (July 23, 2008) 

(SR–NASDAQ–2008–035). The Exchange recently 

changed its name to NASDAQ OMX PHLX. See 

Securities Exchange Act Release No. 58380 (August 

18, 2008), 73 FR 49728 (August 22, 2008) (SR–Phlx– 

2008–61). 

6The following Exchange Committees would 

remain after this filing: Executive; Audit; Business 

Conduct; Compensation; Nominating, Elections and 

Governance; Quality of Markets; and Finance 

(optional). But see Securities Exchange Act Release 

No. 59538 (March 9, 2009) (SR–Phlx–2009–17), 

which discusses, among other things, renaming of 

the Nominating, Elections and Governance 

Committee. 

7Pursuant to By-Law Article X, Section 10–6, the 

Admissions Committee has jurisdiction over, 

among other things: the review of applications of 

non-members seeking to become members, member 

organizations, permit holders, foreign currency 

options participants, or foreign currency options 

participant organizations; changes to membership 

affiliation and status; determinations regarding 

affiliations of existing members and member 

organization firms and determinations regarding 

inactive nominees [sic]; and qualification, 

revocation and reinstatement of permits and foreign 

currency options participations. 

8By-Law Article XII, Section 12–5 describes the 

processing of applications for permits or admission 

as FCO participants and indicates, among other 

things, that: Exchange staff (the Membership 

Services Department) initially receives, reviews and 

makes recommendations regarding such 

applications; the Admissions Committee makes the 

final application determinations; and applicant 

names are posted for a period of seven days in the 

Weekly Bulletin and on the Web site of the 

Exchange. 

9See Rule 900 (indicating that the Membership 

Department will administer Rules 901 to 949 and 

971 and 972, inclusive). 

10 ‘‘Membership Department’’ in By-Law Article I, 

Section 1–1(mm) replaces the Exchange’s 

Membership Services Department. See also By-Law 

Article I, Section 1–1, Article IV, Section 4–4, 

Article V, Section 5–8, Article XI, Section 11–1, 

Article XIII, Sections 13–2, 13–6, 13–8, Article XIV, 

Section 14–5, Article XV, Sections 15–1, 15–2, 

15–3, 15–6, 15–7, 15–8, 15–10 Article XVII, 

Sections 17–1, 17–2, 17–3, 17–4, 17–5, and Article 

XXVII, Section 27–4; and Rules 1, 173, 600, 601, 

602, 901, 902, 904, 906, 907, 909, 921, 922, 930, 

949, and 1090. 

11The Exchange proposes to transfer from By-Law 

Article X, Section 10–6 to new Rule 900.1 only 

those substantive areas that are relevant to the 

structure of the admissions and membership 

process overseen by the Membership Department. 

For example, the provision in Section 10–6 that the 

Business Conduct Committee share jurisdiction 

over the revocation of permits and foreign currency 

options participations in connection with 

disciplinary matters with the Admissions 

Committee, and references to the Admissions 

Committee are not transferred to Rule 900.1. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange was recently acquired 

by The NASDAQ OMX Group, Inc. 

(‘‘NASDAQ OMX’’).5

The purpose of the proposed rule 

change is to streamline the governance 

of the Exchange by eliminating and/or 

consolidating certain standing 

committees of the Board to make the 

Exchange’s governance process more 

similar to that of NASDAQ OMX’s other 

U.S. SROs, The NASDAQ Stock Market 

LLC (the ‘‘NASDAQ Stock Market’’) and 

NASDAQ OMX BX, Inc. (‘‘BX’’). The 

duties of the eliminated committees will 

generally be administered by Exchange 

staff or other Board committees. The 

Exchange also proposes to codify the 

ability of the Exchange to take 

emergency action, change how 

information is provided to Exchange 

membership, and update the 

functioning of the Exchange’s 

disciplinary committee. 

The Exchange proposes to: Eliminate 

the Admissions Committee and 

Allocation, Evaluation and Securities 

Committee; consolidate the Options 

Committee and the Foreign Currency 

Options Committee into the Quality of 

Markets Committee; and eliminate the 

use of the Weekly Bulletin. The 

Exchange also proposes to: Change the 

membership structure of the Business 

Conduct Committee and eliminate the 

Hearing Officer; make the Finance 

Committee optional at the discretion of 

the Board; and authorize the Chief 

Executive Officer and the President of 

the Exchange to take action in the event 

of an emergency or extraordinary market 

conditions. As a result of this filing, 

eleven standing committees of the 

Exchange’s Board would be reduced to 

seven, one of which would be optional 

at the discretion of the Board.6

The Exchange believes that its 

proposal should considerably 

streamline Exchange governance to the 

benefit of the Exchange and its 

membership. Moreover, the Exchange 

believes that its proposal is conducive 

to the objective of Phlx, BX, and the 

NASDAQ Stock Market having similar 

by-laws and/or rules where practical. 

Admissions Committee 

The Exchange proposes to amend its 

By-Law Article X, Section 10–1, 

Standing Committees, which lists all 

Exchange standing committees, to 

eliminate the Admissions Committee. 

The Exchange proposes to delete its ByLaw Article X, Section 10–6, 

Admissions Committee, which sets forth 

the duties and functions of the 

Admissions Committee,7 and transfer 

those duties to the Exchange’s 

Membership Department in proposed 

new Rule 900.1, General Powers and 

Duties of Membership Department. The 

Exchange proposes to delete By-Law 

Article XII, Section 12–5, Application, 

which sets forth the duties and 

functions of the Admissions Committee 

in respect of applications for permits 

and admission as foreign currency 

options (‘‘FCO’’) participants,8 and 

transfer the relevant provisions of 

Section 12–5 to the Membership 

Department in new Rule 900.2, 

Membership Applications. 

Over the years, Exchange staff has 

been involved in virtually all aspects of 

the Exchange’s admission and 

membership process, including assisting 

the Admissions Committee in the 

review of membership applications, 

renewals and requests for contraction 

and expansion of membership 

privileges, and communicating with the 

Admissions Committee and Phlx 

membership regarding admission and 

membership. The Exchange believes 

that staff time allocated to 

communicating with the Admissions 

Committee, organizing its meetings, and 

communicating on its behalf can be 

better utilized and redirected to 

performance of admission and 

membership-related functions by the 

new Membership Department, which is 

currently known as the Membership 

Services Department. The Exchange 

therefore proposes to have the 

Membership Department perform the 

functions of the Admissions Committee. 

The Exchange proposes to expressly 

provide that the Membership 

Department will administer the 

Exchange rules that are currently 

administered by the Admissions 

Committee.9 The Exchange also 

proposes to delete all references to the 

Admissions Committee, clarify 

references to the Membership 

Department, and generally make 

changes in a variety of by-laws and rules 

that correspond to by-law amendments 

discussed herein.10

Proposed new Rule 900.1, which is 

based on deleted By-Law Article X, 

Section 10–6, indicates that the 

Membership Department will be in 

charge of the membership and 

admissions processes at the Exchange. 

As such, the Membership Department 

will have jurisdiction over, among other 

things, admission, denial, reinstatement, 

and revocation of membership to the 

Exchange; supervision of members, 

membership organizations and 

partnership arrangements; qualification, 

registration, and determinations 

regarding affiliations of entities as 

foreign currency options participants; 

and rights and privileges of permit 

holders.11


dwashington3 on PROD1PC60 with NOTICES
Federal Register / Vol. 74, No. 67 / Thursday, April 9, 2009 / Notices 16251 

12The Exchange proposes to transfer from deleted 

By-law Article XII, Section 12–5 to new Rule 900.2 

only those substantive areas that are relevant to the 

processing of applications. Provisions in Section 

12–5 regarding posting of applicant names for a 

seven day period in the Weekly Bulletin and on the 

Exchange’s Web site; references to the Admissions 

Committee; and references to the Demutualization 

Merger, see Securities Exchange Act Release No. 

49098 (January 16, 2004), 69 FR 3974 (January 27, 

2004) (SR–Phlx–2003–73), for example, are not 

transferred to Rule 900.2. 13The NASDAQ Stock Market does not have an 

Admissions Committee. See NASDAQ Stock Market 

By-Law (‘‘NASDAQ By-Law’’) Article III, Sections 

5 and 6. Membership application processing and 

decisions regarding NASDAQ membership are 

handled by staff. See NASDAQ Stock Market Rule 

(‘‘NASDAQ Rule’’) 1000 et seq. 

14The Bulletin, which is currently distributed in 

electronic form, also provides notice of certain 

matters such as, for example, the bid, ask and last 

sales prices for Exchange memberships and 

NASDAQ OMX Futures Exchange, Inc. (‘‘NFX’’) 

(formerly Philadelphia Board of Trade or ‘‘PBOT’’) 

shares; and disciplinary decisions issued and 

sanctions imposed by the Exchange’s Business 

Conduct Committee. See Supplementary Material to 

By-Law Article XVIII, Section 18–2 for Board policy 

of publicizing fines, censures and disciplinary 

actions regarding members and member 

organizations. The Exchange intends to provide this 

information on its Web site. 

15See By-Law Article XII, Section 12–5. See also 

By-Law Article XV, Section 15–1 regarding a 7 day 

notice in the Bulletin; and By-Law Article XVII, 

Section 17–5 regarding a 14 day notice in the 

Bulletin prior to the Admission Committee 

considering an application. See also By-Law Article 

XV, Section 15–2 regarding a 7 day transfer notice. 

16Pursuant to By-Law Article X, Section 10–7, the 

Allocation Committee has jurisdiction over, among 

other things: the appointment or approval of 

specialists, Streaming Quote Traders (‘‘SQTs’’) and 

Remote Streaming Quote Traders (‘‘RSQTs’’); 

allocation, retention and transfer of privileges to 

deal in options on Exchange trading floors; 

evaluation of the performance of specialists, SQTs 

and RSQTs; and administration of the 500 series of 

Exchange rules. 

17The Exchange’s Equity Allocation, Evaluation 

and Securities Committee was eliminated with the 

implementation of the Exchange’s electronic equity 

trading system (XLE). See Securities Exchange Act 

Release No. 54329 (August 17, 2006), 71 FR 50482 

(August 25, 2006) (SR–Phlx–2006–43). XLE is no 

longer operating. 

18See Rule 500 (indicating that Rules 500 through 

599 will be administered by the Exchange). Unlike 

the transfer of duties from the Admissions 

Committee to a specific Membership Department, 

the transfer of duties from the Allocation 

Committee is generally to the ‘‘Exchange.’’ In 

addition to the rules, the admission process is 

described by the Exchange on its Web site. 

19See By-Law Article XI, Section 11–1 and ByLaw Article XXVII, Sections 27–3 and 27–4 [sic]; 

Rules 501, 505, 506, 507, 508, 510, 511, 513, 515, 

602, and 1014; and OFPA B–6. See also Rules 525 

and 526 (deleting rules regarding Allocation 

Committee authority), and 509 (deleting rule 

referring to outdated subcommittee of the 

Allocation Committee). 

Proposed new Rule 900.2, which is 

based on deleted By-Law Article XII, 

Section 12–5, indicates that applicants 

for a permit or admission as a member 

or as a foreign currency options 

participant shall initiate the procedure 

by filing an application with the 

Membership Department in such form 

as prescribed by the department. All 

applications will be reviewed and acted 

on by the Membership Department. 

Should the Membership Department not 

approve an application, it shall notify 

the applicant in writing of the specific 

grounds for denial.12

An applicant that is not approved has 

a right to an appeal hearing pursuant to 

By-Law Article XI. The process of 

appealing from standing committee 

decisions is set forth in By-Law Article 

XI, Section 11–1(a), which indicates that 

appeals from standing committee 

decisions are initiated by filing with the 

Secretary of the Exchange a notice of 

appeal within 10 days after the decision 

has been rendered. The Exchange 

proposes to add the Membership 

Department into By-Law Article XI, 

Section 11–1(a) to permit appeals from 

Membership Department decisions. The 

Exchange proposes to similarly add the 

Membership Department into By-Law 

Article XI, Section 11–1(c) to indicate 

that appeals from decisions of the 

Membership Department will be heard 

by a special committee of the Board 

composed of three Governors, at least 

one of whom is an Independent 

Governor (the ‘‘Special Committee’’). A 

decision of the Special Committee is not 

appealable to the Board. 

The Exchange believes that the 

elimination of the Admissions 

Committee and transfer of its duties to 

the Membership Department will begin 

to align Exchange admissions and 

membership processing more closely to 

that of NASDAQ OMX and/or the 

NASDAQ Stock Market.13

Weekly Bulletin 

The Exchange proposes to eliminate 

publication of its Weekly Bulletin (the 

‘‘Bulletin’’), which contains, among 

other things, changes in permit holder 

and member organization status and 

applications made to the Exchange.14

The Bulletin invites readers to report 

information regarding applications and 

applicants. The current admissions 

process requires that, if the Admissions 

Committee votes favorably regarding a 

request by an applicant, his or her name 

has to be posted for a period of 7 days 

in the Bulletin and on the Exchange’s 

Web site. If during this time an 

objection to provision of a permit or 

application is received by the 

Admissions Committee (the ‘‘objection 

process’’), it must reconsider its 

favorable vote.15

The Exchange believes that admission 

and membership decisions can be 

administered by the Exchange. The 

Exchange therefore proposes to 

eliminate the objection process and 

notification in the Bulletin and/or on its 

Web site. The Exchange intends to 

instead provide notification regarding 

membership approvals on the 

Exchange’s Web site. 

The Exchange believes that the 

Bulletin, which at one time served as a 

predominant means of communication 

regarding exchange matters, is no longer 

a viable means of communication in 

today’s fast-paced, electronic world. As 

such, the Exchange proposes to 

terminate publication of the Bulletin 

and to provide disciplinary and other 

relevant information on its Web site. 

Allocation Committee 

The Exchange proposes to amend its 

By-Law Article X, Section 10–1, 

Standing Committees, to eliminate the 

Options Allocation, Evaluation and 

Securities Committee (the ‘‘Allocation 

Committee’’). The Exchange proposes to 

delete its By-Law X, Section 10–7, 

Options Allocation, Evaluation and 

Securities Committee, which sets forth 

the duties and functions of the 

Allocation Committee.16 The relevant 

functions and duties of the committee 

will be performed by Exchange staff. 

Similar to Exchange staff involvement 

with the admission and membership 

process, Exchange staff has been 

involved in all aspects of the Exchange’s 

allocation process through its work with 

the Allocation Committee. The time 

allocated by Exchange staff to 

communicating with and on behalf of 

the Allocation Committee and 

organizing its meetings can be better 

utilized and redirected to performance 

of allocation-related functions upon 

elimination of the Allocation 

Committee.17 In addition, the allocation 

process often necessitates a fast 

turnaround, such that calling committee 

meetings, particularly during trading 

hours, is often challenging. Thus, the 

Exchange believes that allowing 

Exchange staff to perform the functions 

of the Allocation Committee should 

significantly improve the flow and 

efficiency of the allocation process. 

With the elimination of the Allocation 

Committee, the Exchange proposes to 

expressly state that the Exchange will 

administer the rules that are currently 

administered by the Allocation 

Committee.18 The Exchange also 

proposes to delete all references to the 

Allocation Committee, clarify references 

to the Exchange or its staff, and 

generally make changes in a variety of 

by-laws, rules, and OFPAs that 

correspond to by-law amendments 

discussed herein.19

The Exchange believes that the 

elimination of the Allocation Committee 


dwashington3 on PROD1PC60 with NOTICES
16252 Federal Register / Vol. 74, No. 67 / Thursday, April 9, 2009 / Notices 

20The NASDAQ Stock Market does not currently 

have a Board committee similar to the Allocation 

Committee. See NASDAQ Stock Market By-Law 

Article III, Sections 5 and 6. 

21Pursuant to By-Law Article X, Section 10–20, 

the Options Committee currently has jurisdiction 

to, among other things: supervise the dealings of 

members and market makers on the options trading 

floor; recommend adoption of such rules as it 

deems necessary for the convenient and orderly 

transaction of business upon the equity and index 

options trading floor; enforce rules and regulations 

relating to order, decorum, health, safety and 

welfare on the equity and index options trading 

floor; and resolve trading disputes on the equity 

and index options trading floor. Pursuant to Article 

X, Section 10–17, the FCO Committee has 

analogous powers and duties in respect of the FCO 

trading floor. The Exchange notes that pursuant to 

Rule 124, trading disputes are now settled by 

Options Exchange Officials (‘‘OEOs’’). See 

Securities Exchange Act Release No. 55877 (June 7, 

2007), 72 FR 32937 (June 14, 2007) (SR–Phlx–2006– 

87). OEOs are defined in Rule 1(pp). 

22See NASDAQ Stock Market By-Law Article III, 

Section 6(c). 

23Equities do not currently trade on the 

Exchange. 

24 ‘‘Member Representative member’’ is defined 

as a member of any committee appointed by the 

Board of Governors who has been elected or 

appointed after having been nominated pursuant to 

these By-Laws. The definition of ‘‘Member 

Representative member’’ is also proposed to be 

modified in SR–Phlx–2009–17. See proposed ByLaw Article I, Section 1–1(qq), which is based on 

NASDAQ Stock Market By-Law Article I(r). 

25 ‘‘Non-Industry member’’ is defined as a 

member of any committee appointed by the Board 

of Governors who is (i) a Public member; (ii) an 

officer, director, or employee of an issuer of 

securities listed on the Exchange; or (iii) any other 

individual who would not be an Industry member. 

See proposed By-Law Article I, Section 1–1(oo), 

which is based on NASDAQ Stock Market By-Law 

Article I(w). ‘‘Public Member’’ is defined as a 

member of any committee appointed by the Board 

of Governors who has no material business 

relationship with a broker or dealer, the Exchange, 

or its affiliates. See proposed By-Law Article I, 

Section 1–1(pp) [sic], which is based on NASDAQ 

Stock Market By-Law Article I(z). The definitions of 

‘‘Non-Industry member’’ and ‘‘Public Member’’ are 

also proposed to be modified in SR–Phlx–2009–17. 

26 ‘‘Industry member’’ is defined as a member of 

any committee appointed by the Board who (i) is 

or has served in the prior three years as an officer, 

director, or employee of a broker or dealer, 

excluding an outside director or a director not 

engaged in the day-to-day management of a broker 

or dealer; (ii) is an officer, director (excluding an 

outside director), or employee of an entity that 

owns more than ten percent of the equity of a 

broker or dealer, and the broker or dealer accounts 

for more than five percent of the gross revenues 

received by the consolidated entity; (iii) owns more 

than five percent of the equity securities of any 

broker or dealer, whose investments in brokers or 

dealers exceed ten percent of his or her net worth, 

or whose ownership interest otherwise permits him 

or her to be engaged in the day-to-day management 

of a broker or dealer; (iv) provides professional 

services to brokers or dealers, and such services 

constitute 20 percent or more of the professional 

revenues received by the committee member or 20 

percent or more of the gross revenues received by 

the committee member’s firm or partnership; (v) 

provides professional services to a director, officer, 

or employee of a broker, dealer, or corporation that 

owns 50 percent or more of the voting stock of a 

broker or dealer, and such services relate to the 

director’s, officer’s, or employee’s professional 

capacity and constitute 20 percent or more of the 

professional revenues received by the committee 

member or 20 percent or more of the gross revenues 

received by the committee member’s firm or 

partnership; or (vi) has a consulting or employment 

relationship with or provides professional services 

to the Exchange or any affiliate thereof or to FINRA 

(or any predecessor) or has had any such 

relationship or provided any such services at any 

time within the prior three years. The definition of 

‘‘Industry member’’ is also proposed to be modified 

in SR–Phlx–2009–17. See proposed By-Law Article 

I, Section 1–1(nn), which is based on NASDAQ 

Stock Market By-Law Article I(m). 

27See Section 6(b)(3) of the Act setting forth, 

among other things, the objective of ‘‘fair 

representation’’ of an exchange’s members in the 

administration of its affairs. 15 U.S.C. 78f(b)(3). 

28By-Law Article VIII, Section 8–1 also refers to 

XLE, which was the Exchange’s electronic system 

for the entry, display, execution, and reporting of 

orders in NMS stocks. XLE was discontinued on 

October 24, 2008, and is no longer operating. See 

Securities Exchange Act Release No. 58613 

(September 22, 2008), 73 FR 57181 (October 1, 

2008) (SR–Phlx–2008–65). References to XLE will 

be removed from By-Law Article VIII, Section 8–1; 

Article I, Section 1–1; and Article X, Sections 10– 

11 and 10–15. 

and transfer of its duties to the 

Exchange should help make the 

Exchange’s allocations structure more 

similar to that of the NASDAQ Stock 

Market.20

Options Committee and Foreign 

Currency Options Committee 

The Exchange is eliminating the 

Options Committee and Foreign 

Currency Options Committee (the ‘‘FCO 

Committee’’), which are now two 

separate Board committees, and 

combining them into the Quality of 

Markets Committee. In particular, the 

Exchange proposes to amend its By-Law 

Article X, Section 10–1, Standing 

Committees to eliminate the Options 

Committee and the FCO Committee 

from the list of Exchange committees. 

The Exchange proposes to delete its ByLaw Article X, Section 10–20, Options 

Committee, and its By-Law Article X, 

Section 10–17, Foreign Currency 

Options Committee, setting forth the 

duties and functions of the 

committees.21 The Exchange then 

proposes to fold these two committees 

into the Quality of Markets Committee 

(the ‘‘QMC’’) by amending the language 

of By-Law Article X, Section 10–21, 

Quality of Markets Committee, so that 

the duties and functions of the 

Exchange’s QMC would be analogous to 

those of the NASDAQ Stock Market 

QMC.22 Specifically, the new QMC 

would have the following functions 

respecting index, foreign currency, and 

equity options as well as equities: 23 to 

provide advice and guidance to the 

Board on issues relating to the fairness, 

integrity, efficiency, and 

competitiveness of the information, 

order handling, and execution 

mechanisms of the Exchange from the 

perspective of investors (both individual 

and institutional), retail firms, specialist 

and registered options trader firms, and 

other participants of the Exchange; and 

to advise the Board with respect to 

national market system plans and 

linkages between the facilities of the 

Exchange and other markets. 

The new QMC would include broad 

representation of various participant 

groups in the Exchange, including 

investors, specialist and registered 

options trader (‘‘ROT’’) firms, retail 

firms, and order entry firms. 

Specifically, the QMC would include a 

number of Member Representative 

members 24 that is equal to at least 20 

percent of the total number of members 

of the committee. Furthermore, the 

number of Non-Industry members (i.e., 

committee members not associated with 

broker-dealers) 25 on the QMC would 

equal the sum of the number of Industry 

members 26 and Member Representative 

members. The Exchange believes that 

the proposed composition of the QMC 

would reflect a ‘‘fair representation’’ of 

Exchange members.27

By-Law Article VIII, Section 8–1 

currently states that the Chairs of the 

Options Committee and the FCO 

Committee preside over the Exchange’s 

options and FCO trading floors. The 

Exchange proposes to amend its By-Law 

Article VIII, Section 8–1 to eliminate 

reference to the Chairs of the Options 

Committee and FCO Committee and to 

indicate that the President of the 

Exchange and his designee would be 

vested with supervision over the 

options trading floor.28 In particular, 

updated Article VIII, Section 8–1 would 

indicate that the President of the 

Exchange and his designated staff shall 

have: general supervision over the 

options trading floor as well as general 

supervision of the dealings of members 

on the trading floor and on Exchange 

trading systems, and of the premises of 

the Exchange immediately adjacent 

thereto; supervision of all connections 

or means of communications with the 

options trading floor; and supervision 

over the location of equipment and the 

assignment and use of space on the 

options trading floor. Section 8–1 would 

also indicate that the President shall 

have supervision over relations with 

other options exchanges; and that the 

Exchange shall make and enforce rules 

and regulations relating to order, 

decorum, health, safety and welfare on 

the options trading floor and the 

immediately adjacent premises of the 

Exchange and shall be empowered to 

impose penalties for violations thereof. 

The Exchange believes that vesting this 

authority with the President of the 


dwashington3 on PROD1PC60 with NOTICES
Federal Register / Vol. 74, No. 67 / Thursday, April 9, 2009 / Notices 16253 

29See NASDAQ Stock Market By-Law Article IV, 

Section 5 (vesting general supervision of the 

operations of the NASDAQ Stock Market in the 

President). 

30See By-Law Article XXVII, Section 27–3; Rules 

60, 101, 124, 508, 606, 1012, 1014, 1017, 1061, 

1064, 1066, 1079, and 1080; and OFPAs A–12, A– 

13, A–14, B–6, F–27, F–28, and F–31. 

31See By-Law Article X, Section 10–11. Because 

the functions and duties of BCC are clearly set forth 

in Section 10–11, the Exchange proposes to delete 

Rule 700, Powers and Duties, which the Exchange 

believes superfluously lists the rules administered 

by BCC. 

32 In By-Law-Article X, Section 10–11, the 

Exchange also adds a cross-reference to By-Law 

Article VIII, Section 8–1. 

33See Section 6(b)(3) of the Act setting forth, 

among other things, the objective of ‘‘fair 

representation’’ of an Exchange’s members in the 

administration of its affairs. 15 U.S.C. 78f(b)(3). 

34The Exchange is deleting the requirement to 

have one BCC member that is an Exchange member 

or is associated with a member organization that 

conducts equity business on XLE, as XLE is no 

longer operating. See supra note 17. 

The Commission notes that Phlx has committed 

to submit a separate proposed rule change further 

modifying Phlx By-Law Article X, Section 10–11 to 

clarify that the BCC shall include a number of 

committee members equal to at least 20% of the 

total number of members on the BCC that are 

representative of Phlx members./FTNT≤ 

35See Rules 960.1 to 960.12 (Exchange 

disciplinary hearing rules) and NASDAQ Stock 

Market Rules 4800 to 4816 (NASDAQ Stock Market 

delisting hearing rules). 

36See Rules 960.2 and 960.3. 

37See Rules 960.4, 960.5, 960.6, 960.8, 960.9, 

960.10, 960.11, and 970. 

38Proposed subsection (a)(4) of Rule 960.5 states: 

A Hearing Attorney shall assist the Hearing Panel 

in the discharge of its duties. The Hearing Attorney 

shall not have a vote in the Panel’s disposition of 

the matter, but will advise the Panel on the 

application of the Disciplinary Rules, Guidelines for 

Sanctions, and relevant precedent. The Hearing 

Attorney will not be permitted to be involved in 

any manner in the investigation of possible 

misconduct, to participate in the consideration by 

the Business Conduct Committee of whether to 

institute a disciplinary action, to render a decision 

following a hearing without the concurrence of a 

majority of the Hearing Panel, rule upon requests 

to disqualify the Hearing Attorney or any member 

of the Hearing Panel, or issue citations for 

violations of Exchange rules or floor procedure 

advices. 

39Appeals may be initiated by filing with the 

Exchange a written notice of appeal within 10 days 

after a decision is rendered, and will be conducted 

by the Board or an Advisory Committee appointed 

by the Board. See By-Law Article XI, Sections 11– 

1, 11–2, and 11–3. The Exchange proposes to delete 

reference to ‘‘Hearing Officer’’ in the title of By-Law 

Article XI, Section 11–3. 

40The Finance Committee has the jurisdiction to, 

among other things, report to the Board regarding: 

examination of the accounts and vouchers of the 

Exchange; prepare estimates of the income and 

recommendations as to appropriations for expenses, 

and assist in the preparation of the annual budget 

and make recommendations thereon. See By-Law 

Article X, Section 10–15. 

Exchange is appropriate, should 

streamline Exchange processes, and is 

similar to the NASDAQ Stock Market.29

As with other eliminated committees, 

the Exchange proposes to delete all 

references to the Options Committee 

and the FCO Committee, clarify 

references to the Exchange or its staff, 

and generally make changes in a variety 

of by-laws, rules, and OFPAs that 

correspond to the proposed by-law 

amendments.30

Business Conduct Committee 

The Business Conduct Committee 

(‘‘BCC’’) is the Exchange’s disciplinary 

committee. It has exclusive jurisdiction 

to, among other things: monitor 

compliance with the Act and rules and 

regulations thereunder, with the 

Exchange’s By-Laws and Rules and any 

interpretations thereof, and with the 

rules, regulations and policies of the 

Board or any Exchange committees; and 

authorize the initiation of any 

disciplinary actions or proceedings 

brought by the Exchange.31 The BCC 

currently consists of nine members that 

include: three Independent Governors; 

one member or person associated with 

a member organization who conducts 

business on XLE; one member who 

conducts options business at the 

Exchange; and four persons who are 

members or persons associated with a 

member organization. The Exchange 

proposes to change the required number 

of members on BCC and the 

qualifications for committee 

membership. 

The Exchange proposes to change ByLaw Article X, Section 10–11 to give the 

Board discretion to establish not less 

than five or more than nine members of 

BCC.32 The Exchange also proposes that 

the BCC would be populated from three 

distinct groups. The majority of the 

committee members would be NonIndustry members and the remaining 

committee members would be Industry 

members. Significantly, to further 

ensure fair representation of Exchange 

members on this important 

committee,33 at least one committee 

member would have to be a member of 

the Exchange that conducts an options 

business at Phlx.34

The Exchange also proposes to update 

certain provisions in its disciplinary 

procedures in furtherance of conforming 

its hearings processes with those of the 

NASDAQ Stock Market.35 Specifically, 

the Exchange is changing the 

composition of its disciplinary Hearing 

Panel by deleting the requirement to 

have a Hearing Officer. Currently, 

Exchange disciplinary hearings on a 

Statement of Charges 36 are held before 

a three person Hearing Panel appointed 

by the Chair of the BCC and the 

presiding person of each Hearing Panel 

is a Hearing Officer. The Exchange is 

eliminating the Hearing Officer position. 

The Exchange proposes to change its 

By-Law Article X, Section 10–11 to 

delete references to a Hearing Officer. 

The Exchange proposes to change 

various rules in the 960 series to delete 

references to the Hearing Officer, and to 

clarify references to the Hearing Panel.37

The Exchange also proposes to add the 

definition of a Hearing Attorney in Rule 

960.5 to indicate that, among other 

things, the Hearing Attorney will take 

over the administrative duties that the 

Hearing Officer previously handled, will 

advise the Hearing Panel on applicable 

rules and procedure, but will not be a 

voting member of the Hearing Panel.38

The process of appealing from Hearing 

panel decisions will remain the same.39

The Exchange additionally proposes 

rule changes to update and conform 

certain disciplinary rules. To that end, 

the Exchange proposes amendments 

that would: update references to the 

Exchange’s Regulatory Department in 

Rule 960.2; add the ability to serve 

documents by electronic delivery upon 

mutual consent of the parties in Rule 

960.11; and clarify that Hearing 

Panelists may be paid additional 

compensation in extraordinary cases in 

Rule 960.5. 

The Exchange believes that allowing 

the Board to reduce the number of 

members on BCC by as much as 44% 

should make the committee more 

efficient. The Exchange also believes 

that requiring that the BCC be composed 

of Non-Industry members and Industry 

members that are defined similarly by 

the Exchange and the NASDAQ Stock 

Market, and introducing a Hearing 

Attorney position in lieu of a Hearing 

Officer, should make the Exchange and 

NASDAQ Stock Market hearing 

processes more similar while 

maximizing the fairness and 

independence of the Exchange’s BCC 

and disciplinary proceedings. 

Finance Committee 

Currently, the Finance Committee is a 

permanent standing committee of the 

Board.40 The Exchange proposes to 

amend its By-Law Article X, Section 10– 

1 to indicate that the Finance 

Committee would be an optional 

committee, to be appointed only if 

deemed necessary by the Board, and 

that the Finance Committee would have 

such powers and duties with respect to 

the financial operation of the Exchange 

as may be delegated by the Board. The 

Exchange proposes to amend its By-Law 

Article X, Section 10–15 to make 

corresponding changes indicating the 

optional nature of the Finance 

Committee. Should a Finance 

Committee not be appointed by the 

Board, however, pursuant to By-Law 


dwashington3 on PROD1PC60 with NOTICES
16254 Federal Register / Vol. 74, No. 67 / Thursday, April 9, 2009 / Notices 

41See By-Law Article IV, Section 4–4. 

42See NASDAQ Stock Market By-Law Article III, 

Section 5(b) (Board may appoint a Finance 

Committee to advise regarding financial operations 

and conditions of NASDAQ Stock Market). 

43See e.g. Rules 1080(e) and 98. 

44See Rules 100, 108, 124, 507, 761, 800, 803, 

960.2, 1001, 1003, 1014, 1017, 1039, 1042, 1047, 

1061, 1080, 1092, and 1001A; and OFPAs A–12, A– 

13, A–14, F–7, F–13, F–15, F–22, and F–27. As an 

example, the terms ‘‘Market Surveillance 

Department’’ in Rule 761 and ‘‘Market 

Surveillance’’ in Rule 1047 are changed to 

‘‘regulatory staff.’’ 

45 15 U.S.C. 78f(b). 

46 15 U.S.C. 78f(b)(5). 

47 15 U.S.C. 78f(b)(3). 

Article IV, the Board continues to retain 

the power to review the Exchange’s 

finances.41

The Exchange’s proposal to make the 

Finance Committee optional is similar 

to the NASDAQ Stock Market, where 

the Finance Committee is optional, at 

the discretion of the Board.42

Emergency or Extraordinary Market 

Conditions 

The Exchange proposes adoption of 

new By-Law Article IV, Section 4–23, 

which is similar to NASDAQ Stock 

Market By-Law Article IX, Section 5 

authorizing the Board or its designee to 

take certain actions in the event of an 

emergency or extraordinary market 

conditions. Specifically, new By-Law 

IV, Section 4–23 states that in the event 

of an emergency or extraordinary market 

conditions, the Board or such person as 

may be designated by the Board, shall 

have the authority to take any action 

regarding: the trading in or operation of 

the Exchange or any other organized 

securities markets that may be operated 

by the Exchange, the operation of any 

automated system owned or operated by 

the Exchange, and the participation in 

any such system or any or all persons 

or the trading therein of any or all 

securities; and the operation of any or 

all offices or systems of members and 

member organizations, if, in the opinion 

of the Board or its designee, such action 

is necessary or appropriate for the 

protection of investors or the public 

interest or for the orderly operation of 

the marketplace or the system. Although 

the Exchange has other ‘‘extraordinary 

market conditions’’ provisions in its 

rules,43 the Exchange seeks adoptions of 

a provision that is similar to the 

NASDAQ Stock Market. 

Finally, the Exchange is proposing 

technical, housekeeping rule changes in 

respect of references that are obsolete, 

no longer in use, or in need of updating 

so that Phlx Rules and Advices may be 

conformed. These include references to 

departments, positions, and committees 

that are renamed or no longer exist (e.g. 

Market Surveillance Department, 

Market Surveillance, Arbitration 

Department, Financial Automation, 

Office of Chief Examiner, and Stock List 

Committee); and to circulars that are no 

longer in use (e.g. exchange and 

information circulars).44

2. Statutory Basis 

The Exchange proposes to streamline 

the governance structure of the 

Exchange by updating, eliminating and 

consolidating its committees, codifying 

certain emergency functions, updating 

its disciplinary process, and 

harmonizing Exchange By-Laws, Rules 

and OFPAs. The Exchange believes that 

its proposal is consistent with Section 

6(b) of the Act 45 in general, and furthers 

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

Act 46 in particular, in that it is designed 

to promote just and equitable principles 

of trade, to remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system, and, in general to protect 

investors and the public interest. The 

Exchange believes that its proposal also 

furthers the objectives of Section 6(b)(3) 

of the Act,47 in that it is designed to 

promote fair representation of the 

members of the Exchange in the 

administration of its affairs, as 

discussed herein. 

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 

Within 35 days of the date of 

publication of this notice in the Federal 

Register or within such longer period (i) 

as the Commission may designate up to 

90 days of such date if it finds such 

longer period to be appropriate and 

publishes its reasons for so finding or 

(ii) as to which the Exchange consents, 

the Commission shall: (a) By order 

approve such proposed rule change, or 

(b) institute proceedings to determine 

whether the proposed rule change 

should be disapproved. 

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 

Number SR–Phlx–2009–23 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 

Securities and Exchange Commission, 

Station Place, 100 F Street, NE., 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–Phlx–2009–23. 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, 100 F Street, NE., Washington, 

DC 20549, on official business days 

between the hours of 10 a.m. and 3 p.m. 

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 publicly available. All 

submissions should refer to File 

Number SR–Phlx–2009–23 and should 

be submitted on or before April 30, 

2009. 


dwashington3 on PROD1PC60 with NOTICES
Federal Register / Vol. 74, No. 67 / Thursday, April 9, 2009 / Notices 16255 

48 17 CFR 200.30–3(a)(12). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.48

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–8001 Filed 4–8–09; 8:45 am] 

BILLING CODE 8010–01–P 

DEPARTMENT OF STATE 

[Public Notice 6573] 

Fine Arts Committee Notice of Meeting 

The Fine Arts Committee of the 

Department of State will meet on April 

30, 2009 at 1:30 p.m. in the Henry Clay 

Room of the Harry S. Truman Building, 

2201 C Street, NW., Washington, DC. 

The meeting will last until 

approximately 3 p.m. and is open to the 

public. 

The agenda for the committee meeting 

will include a summary of the work of 

the Fine Arts Office since its last 

meeting on November 13, 2008 and the 

announcement of gifts and loans of 

furnishings as well as financial 

contributions from January 1, 2008 

through December 31, 2008. 

Public access to the Department of 

State is strictly controlled and space is 

limited. Members of the public wishing 

to take part in the meeting should 

telephone the Fine Arts Office at (202) 

647–1990 or send an e-mail to 

BurdenVK@State.gov by April 23 to 

make arrangements to enter the 

building. The public may take part in 

the discussion as long as time permits 

and at the discretion of the chairman. 

Dated: March 2, 2009. 

Marcee Craighill, 

Secretary, Fine Arts Committee, Department 

of State. 

[FR Doc. E9–8121 Filed 4–8–09; 8:45 am] 

BILLING CODE 4710–35–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

Notice of Intent To Prepare an 

Environmental Impact Statement for 

the George Bush Intercontinental 

Airport, Houston, TX and To Conduct 

Public Scoping Meetings 

AGENCY: Federal Aviation 

Administration (FAA), Department of 

Transportation (DOT). 

ACTION: Notice of Intent to prepare an 

environmental impact statement (EIS) 

and to conduct public scoping meetings. 

SUMMARY: The FAA is issuing this 

Notice of Intent to advise the public that 

the FAA will prepare an EIS under the 

provisions of the National 

Environmental Policy Act (NEPA) of 

1969, as amended. The EIS will address 

proposed improvements to George Bush 

Intercontinental Airport (IAN). The 

Houston Airport System (HAS), the 

sponsor of the project, completed an 

Airport Master Plan (AMP) for IAN in 

2006. The AMP showed that additional 

airfield capacity was needed. Airfield 

improvements including additional 

runway(s) were recommended to meet 

future capacity and reduce projected 

delays at IAH. 

Based on analysis presented in the 

AMP, FAA concurred that additional 

capacity was needed to meet forecast 

demand and began the EIS process. One 

of the first tasks in the process was to 

update the aviation forecast because of 

the decline in aviation operations since 

the AMP was completed. An updated 

forecast of aircraft operations was 

completed and reconfirmed the need to 

provide for additional capacity at IAH. 

The EIS will document the purpose 

and need for the proposed 

improvements as well as analyze a range 

of alternatives such as use of other 

modes of transportation or airports, 

construction of airfield improvements 

and as required by NEPA, the no action 

alternative. It is anticipated that the 

focus of the analysis will be on airfield 

improvement alternatives including: 

altering runway use and/or constructing 

taxiways; constructing a new runway 

between Runways 8L/26R and 8R/26L; 

and constructing a new runway south of 

Runway 9/27. To comply with NEPA, 

the FAA must also evaluate the 

potential environmental impacts of each 

of the reasonable alternatives such as 

and not limited to: noise impacts, 

impacts on air and water quality, 

wetlands, fish, wildlife, plants, 

floodplains, historic resources, 

hazardous wastes, socioeconomics, and 

economic factors. 

FOR FURTHER INFORMATION CONTACT: 

Federal Aviation Administration, 

Airports Division, Attn: Paul Blackford, 

ASW–652B, 2601 Meacham Boulevard, 

Fort Worth, TX 76137, E-mail: 

pblackford.faa@iah-eis.org, Phone: 817– 

222–5607. 

SUPPLEMENTARY INFORMATION: The 

purpose of this notice is to inform 

federal, state, and local government 

agencies and the public, of FAA’s intent 

to prepare an EIS and to conduct a 

public and agency scoping process. 

Information, data, opinions, and 

comments obtained throughout the 

scoping process will be considered in 

the preparation of the draft EIS. The 

scoping process for this EIS will include 

a comment period for interested 

agencies and parties to submit oral and/ 

or written comments representing the 

concerns and issues they believe the EIS 

should address. 

Scoping Meetings: The purpose of the 

scoping meetings is to receive input 

from the public and agencies regarding 

the scope and process related to the EIS. 

Comments and suggestions are invited 

from all interested parties to ensure that 

issues and concerns related to the 

proposed action and its alternatives are 

addressed. Public and agency scoping 

meetings will be conducted to 

encourage submittal of comments to the 

FAA. 

Public scoping meetings will be held 

from 6 to 9 p.m. on May 12, 2009, at the 

Humble Civic Center and May 14, 2009, 

at the Nimitz High School. Each meeting 

will include an introductory 

presentation, exhibits for team members 

to further explain the project and 

process, and opportunities to submit 

oral or written comments. To notify the 

general public of the scoping process, a 

legal notice will be placed in 

newspapers having general circulation 

in the study area. The newspaper notice 

will notify the public that scoping 

meetings will be held to gain public 

input concerning the proposed action, 

alternatives to be considered, and 

environmental impacts to be evaluated. 

The notice will also identify where the 

scoping package will be available for 

review. 

An agency scoping meeting for all 

federal, state, and local regulatory 

agencies which have jurisdiction by law 

or have special expertise with respect to 

any potential environmental impacts 

associated with the proposed action will 

be held from 1:30 to 3:30 p.m. on May 

12, 2009 at the Humble Civic Center. A 

notification letter along with a scoping 

package will be sent in advance of those 

meetings. 

The Scoping Meetings provide the 

first major opportunity for gathering 

comments from agency representatives 

and the general public. Comments 

received at the meetings, or by mail, email and via the Web site (http:// 

www.iah-eis.org) by June 15, 2009, will 

be included in the Scoping Report and 

considered for inclusion in the EIS. The 

Final Scoping Report will be made 

available to the public on the Web site. 

In addition to preparing the EIS to 

fulfill the requirements of NEPA, the 

FAA will prepare the EIS in order to 

comply with other applicable laws 

having public involvement 

requirements. Comments addressing 

other applicable laws should be 


dwashington3 on PROD1PC60 with NOTICES