Federal Register / Vol. 73, No. 79 / Wednesday, April 23, 2008 / Notices 21917 

1 7 U.S.C. 1 et seq. 

2 7 U.S.C. 6(c). 

3 15 U.S.C. 78q–l. 

4 7 U.S.C. 7a–2(c), 17 CFR 39.4(a), 40.5. 

5 streetTRACKS Gold Trust Shares, which 

underly ST Gold Options, are described in greater 

detail in the ‘‘Proposed Exemptive Order for ST 

Gold Futures Contracts,’’ 73 FR 13,867 (March 14, 

2008). The length of the comment period for this 

proposal is informed by the fact that the ST Gold 

Futures Contracts proposal is outstanding, and the 

goal of addressing both proposals simultaneously. 

6See SR–OCC–2008–04 and Amendment No. 1 

thereto. OCC has also filed these proposed rule 

changes with the SEC. 

7Section 4(c)(1) of the CEA, 7 U.S.C. 6(c)(1), 

provides in full that: 

In order to promote responsible economic or 

financial innovation and fair competition, the 

Continued 

Dept. of Commerce, NOAA Tech. 

Memo., NMFS-NWFSC–42, 156p. 

Rawson, K., N.J. Sands, K.P.Currens, 

W. Graeber, M. Ruckelshaus, R. 

Fuerstenberg, and J.B. Scott. 2008. 

Viability Criteria for the Lake Ozette 

Sockeye Salmon ESU. Puget Sound 

Technical Recovery Team document. 

Northwest Fisheries Science Center. 

NOAA Fisheries Service. Seattle, WA. 

39p. 

Authority: 16 U.S.C. 1531 et seq. 

Dated: April 17, 2008. 

Marta Nammack, 

Acting Chief, Endangered Species Division, 

Office of Protected Resources, National 

Marine Fisheries Service. 

[FR Doc. E8–8831 Filed 4–22–08; 8:45 am] 

BILLING CODE 3510–22–S 

DEPARTMENT OF COMMERCE 

National Oceanic and Atmospheric 

Administration 

Revised Draft Framework for 

Developing the National System of 

Marine Protected Areas and Response 

to Comments 

AGENCY: NOAA, Department of 

Commerce (DOC). 

ACTION: Extension of public comment 

period; Notice on the Revised Draft 

Framework for Developing the National 

System of Marine Protected Areas. 

SUMMARY: NOAA and the Department of 

the Interior published a notice in the 

Federal Register on March 17, 2008 (73 

FR 14227) announcing a 30-day public 

comment period on the Revised Draft 

Framework for Developing the National 

System of Marine Protected Areas 

(Revised Draft Framework). Copies of 

the Revised Draft Framework can be 

requested via the contact information 

below or downloaded from http:// 

www.mpa.gov. The deadline for public 

comment on the Revised Draft 

Framework is hereby extended. 

DATES: The extended deadline for 

comments on the Revised Draft 

Framework is 11:59 EDT, May 16, 2008. 

ADDRESSES: All comments regarding the 

Revised Draft Framework should be 

submitted to Joseph Uravitch, National 

MPA Center, N/ORM, NOAA, 1305 EastWest Highway, Silver Spring, Maryland 

20910. Comments sent via e-mail should 

be sent to mpa.comments@noaa.gov, 

and all comments sent by fax should be 

sent to 301–713–3110. E-mail and fax 

comments should state ‘‘Revised Draft 

Framework Comments’’ in the subject 

line. 

FOR FURTHER INFORMATION CONTACT: 

Refer to the Federal Register notice of 

March 17, or contact Lauren Wenzel, 

NOAA, at 301–713–3100, or via e-mail 

at mpa.comments@noaa.gov. 

Dated: April 16, 2008. 

David M. Kennedy, 

Director, Office of Ocean and Coastal 

Resource Management, National Oceanic and 

Atmospheric Administration. 

[FR Doc. E8–8672 Filed 4–22–08; 8:45 am] 

BILLING CODE 3510–08–M 

COMMODITY FUTURES TRADING 

COMMISSION 

Proposal To Exempt the Trading and 

Clearing of Certain Products Related to 

streetTRACKS Gold Trust Shares 

AGENCY: Commodity Futures Trading 

Commission. 

ACTION: Notice of proposed order and 

request for comment. 

SUMMARY: The Commodity Futures 

Trading Commission (‘‘CFTC’’ or the 

‘‘Commission’’) is proposing to exempt 

the trading and clearing of products 

called options on streetTRACKS Gold 

Trust Shares (‘‘ST Gold Options’’), 

proposed to be traded on a national 

securities exchange, and cleared 

through the Options Clearing 

Corporation (‘‘OCC’’), from the 

provisions of the Commodity Exchange 

Act (‘‘CEA’’) 1 and the regulations 

thereunder to the extent necessary to 

permit them to be so traded and cleared. 

Authority for this exemption is found in 

Section 4(c) of the CEA.2

DATES: Comments must be received on 

or before April 30, 2008. 

ADDRESSES: Comments may be 

submitted by any of the following 

methods: 

• Federal eRulemaking Portal: http:// 

www.regulations.gov/http:// 

frwebgate.access.gpo/cgi-bin/leaving. 

Follow the instructions for submitting 

comments. 

• E-mail: secretary@cftc.gov. Include 

‘‘OCC ST Gold Options 4(c)’’ in the 

subject line of the message. 

• Fax: 202/418–5521. 

• Mail: Send to David A. Stawick, 

Secretary, Commodity Futures Trading 

Commission, Three Lafayette Centre, 

1155 21st Street, NW., Washington, DC 

20581. 

• Courier: Same as mail above. 

All comments received will be posted 

without change to http:// 

www.CFTC.gov/. 

FOR FURTHER INFORMATION CONTACT: 

Robert B. Wasserman, Associate 

Director, 202–418–5092, 

rwasserman@cftc.gov, Division of 

Clearing and Intermediary Oversight, 

Commodity Futures Trading 

Commission, Three Lafayette Centre, 

1151 21st Street, NW., Washington, DC 

20581. 

SUPPLEMENTARY INFORMATION: 

I. Introduction 

The OCC is both a Derivatives 

Clearing Organization (‘‘DCO’’) 

registered pursuant to Section 5b of the 

CEA, 7 U.S.C. 7a–1, and a securities 

clearing agency registered pursuant to 

Section 17A of the Securities Exchange 

Act of 1934 (‘‘the ’34 Act’’).3

OCC has filed with the CFTC, 

pursuant to Section 5c(c) of the CEA 

and Commission Regulations 39.4(a) 

and 40.5 thereunder,4 requests for 

approval of rules and rule amendments 

that would enable OCC to clear and 

settle ST Gold Options 5 traded on a 

national securities exchange in its 

capacity as a registered securities 

clearing agency (and not in its capacity 

as a DCO).6 Section 5c(c)(3) provides 

that the CFTC must approve any such 

rules and rule amendments submitted 

for approval unless it finds that the 

rules or rule amendments would violate 

the CEA. 

The request for approval concerning 

the ST Gold Options was filed effective 

February 4, 2008, and Amendment No. 

1 thereto was filed effective March 7, 

2008. 

II. Section 4(c) of the Commodity 

Exchange Act 

Section 4(c)(1) of the CEA empowers 

the CFTC to ‘‘promote responsible 

economic or financial innovation and 

fair competition’’ by exempting any 

transaction or class of transactions from 

any of the provisions of the CEA 

(subject to exceptions not relevant here) 

where the Commission determines that 

the exemption would be consistent with 

the public interest.7 The Commission 

mstockstill on PROD1PC66 with NOTICES

21918 Federal Register / Vol. 73, No. 79 / Wednesday, April 23, 2008 / Notices 

Commission by rule, regulation, or order, after 

notice and opportunity for hearing, may (on its own 

initiative or on application of any person, including 

any board of trade designated or registered as a 

contract market or derivatives transaction execution 

facility for transactions for future delivery in any 

commodity under section 7 of this title) exempt any 

agreement, contract, or transaction (or class thereof) 

that is otherwise subject to subsection (a) of this 

section (including any person or class of persons 

offering, entering into, rendering advice or 

rendering other services with respect to, the 

agreement, contract, or transaction), either 

unconditionally or on stated terms or conditions or 

for stated periods and either retroactively or 

prospectively, or both, from any of the requirements 

of subsection (a) of this section, or from any other 

provision of this chapter (except subparagraphs 

(c)(ii) and (D) of section 2(a)(1) of this title, except 

that the Commission and the Securities and 

Exchange Commission may by rule, regulation, or 

order jointly exclude any agreement, contract, or 

transaction from section 2(a)(1)(D) of this title), if 

the Commission determines that the exemption 

would be consistent with the public interest. 

8House Conf. Report No. 102–978, 1992 

U.S.C.C.A.N. 3179, 3213 (‘‘4(c) Conf. Report’’). 

9 4(c) Conf. Report at 3214–3215. 

10Section 4(c)(2) of the CEA, 7 U.S.C. 6(c)(2), 

provides in full that: 

The Commission shall not grant any exemption 

under paragraph (1) from any of the requirements 

of subsection (a) of this section unless the 

Commission determines that—

(A) The requirement should not be applied to the 

agreement, contract, or transaction for which the 

exemption is sought and that the exemption would 

be consistent with the public interest and the 

purposes of this Act; and 

(B) The agreement, contract, or transaction—

(i) Will be entered into solely between 

appropriate persons; and 

(ii) Will not have a material adverse effect on the 

ability of the Commission or any contract market or 

derivatives transaction execution facility to 

discharge its regulatory or self-regulatory duties 

under this Act. 

11CEA 3(b), 7 U.S.C. 5(b). See also CEA 4(c)(1), 

7 U.S.C. 6(c)(1) (purpose of exemptions is ‘‘to 

promote responsible economic or financial 

innovation and fair competition.’’) 

12 44 U.S.C. 3507(d). 

may grant such an exemption by rule, 

regulation or order, after notice and 

opportunity for hearing, and may do so 

on application of any person or on its 

own initiative. 

In enacting Section 4(c), Congress 

noted that the goal of the provision ‘‘is 

to give the Commission a means of 

providing certainty and stability to 

existing and emerging markets so that 

financial innovation and market 

development can proceed in an effective 

and competitive manner.’’ 8 Permitting 

ST Gold Options to trade on national 

securities exchanges and be cleared on 

OCC as discussed above may foster both 

financial innovation and competition. In 

accordance with the Memorandum of 

Understanding entered into between the 

CFTC and the Securities and Exchange 

Commission (‘‘SEC’’) on March 11, 

2008, and in particular the addendum 

thereto concerning Principles Governing 

the Review of Novel Derivative Products, 

the Commission believes that novel 

derivative products that implicate areas 

of overlapping regulatory concern 

should be permitted to trade in either or 

both a CFTC- or SEC-regulated 

environment, in a manner consistent 

with laws and regulations (including the 

appropriate use of all available 

exemptive and interpretive authority). 

The CFTC is requesting comment on 

whether it should exempt ST Gold 

Options, as described above, that are 

traded on a national securities exchange 

and cleared through OCC, from the CEA 

and the Commission’s regulations 

thereunder, to the extent necessary to 

permit them to be so traded and cleared. 

In proposing this exemption, the 

CFTC need not—and does not—find 

that ST Gold Options are (or are not) 

subject to the CEA. During the 

legislative process leading to the 

enactment of Section 4(c) of the CEA, 

the House-Senate Conference 

Committee noted that: 

The Conferees do not intend that the 

exercise of exemptive authority by the 

Commission would require any 

determination beforehand that the agreement, 

instrument, or transaction for which an 

exemption is sought is subject to the Act. 

Rather, this provision provides flexibility for 

the Commission to provide legal certainty to 

novel instruments where the determination 

as to jurisdiction is not straightforward. 

Rather than making a finding as to whether 

a product is or is not a futures contract, the 

Commission in appropriate cases may 

proceed directly to issuing an exemption.9

ST Gold Options are ‘‘novel 

instruments’’ and the ‘‘determination as 

to [their] jurisdiction is not 

straightforward.’’ Given their potential 

usefulness to the market, however, the 

Commission believes that this may be 

an appropriate case for issuing an 

exemption without making a finding as 

to the nature of these particular 

instruments. 

Section 4(c)(2) provides that the 

Commission may grant exemptions only 

when it determines: that the 

requirements for which an exemption is 

being provided should not be applied to 

the agreements, contracts or transactions 

at issue, and the exemption is consistent 

with the public interest and the 

purposes of the CEA; that the 

agreements, contracts or transactions 

will be entered into solely between 

appropriate persons; and that the 

exemption will not have a material 

adverse effect on the ability of the 

Commission or any contract market or 

derivatives transaction execution 

facility to discharge its regulatory or 

self-regulatory responsibilities under the 

CEA.10

The purposes of the CEA include 

‘‘promot[ing] responsible innovation 

and fair competition among boards of 

trade, other markets and market 

participants.’’ 11 It may be consistent 

with these and the other purposes of the 

CEA, with the public interest, with the 

CFTC-SEC Memorandum of 

Understanding of March 11, 2008, and 

with the addendum thereto, for the 

mode of trading of these transactions—

whether it is to be through CFTCregulated markets and clearing 

organizations or SEC-regulated markets 

and clearing organizations—to be 

determined by competitive market 

forces. Accordingly, the CFTC is 

requesting comment as to whether this 

exemption from the requirements of the 

CEA and Regulations thereunder should 

be granted in the context of these 

transactions. 

Section 4(c)(3) includes within the 

term ‘‘appropriate persons’’ a number of 

specified categories of persons, and also 

in subparagraph (K) thereof ‘‘such other 

persons that the Commission 

determines to be appropriate in light of 

* * * the applicability of appropriate 

regulatory protections.’’ Both national 

securities exchanges and OCC, as well 

as their members who will intermediate 

these transactions, are subject to 

extensive and detailed regulation by the 

SEC under the ‘34 Act. The CFTC is 

requesting comment as to whether all 

persons trading ST Gold Options on 

national securities exchanges, and 

clearing such options on OCC, are 

appropriate persons. 

In light of the above, the Commission 

also is requesting comment as to 

whether this exemption will interfere 

with its ability to discharge its 

regulatory responsibilities under the 

CEA or with the self-regulatory duties of 

any contract market or derivatives 

transaction execution facility. 

III. Request for Comment 

The Commission requests comment 

on all aspects of the issues presented by 

this proposed order. 

IV. Related Matters 

A. Paperwork Reduction Act 

The Paperwork Reduction Act of 1995 

(‘‘PRA’’) 12 imposes certain 

requirements on federal agencies 

(including the Commission) in 

connection with their conducting or 

sponsoring any collection of 

information as defined by the PRA. The 

proposed exemptive order would not, if 

approved, require a new collection of 

mstockstill on PROD1PC66 with NOTICES

Federal Register / Vol. 73, No. 79 / Wednesday, April 23, 2008 / Notices 21919 

13 7 U.S.C. 19(a). 

information from any entities that 

would be subject to the proposed order. 

B. Cost-Benefit Analysis 

Section 15(a) of the CEA, as amended 

by Section 119 of the Commodity 

Futures Modernization Act of 2000 

(‘‘CFMA’’),13 requires the Commission 

to consider the costs and benefits of its 

action before issuing an order under the 

CEA. By its terms, Section 15(a) as 

amended does not require the 

Commission to quantify the costs and 

benefits of an order or to determine 

whether the benefits of the order 

outweigh its costs. Rather, Section 15(a) 

simply requires the Commission to 

‘‘consider the costs and benefits’’ of its 

action. 

Section 15(a) of the CEA further 

specifies that costs and benefits shall be 

evaluated in light of five broad areas of 

market and public concern: Protection 

of market participants and the public; 

efficiency, competitiveness, and 

financial integrity of futures markets; 

price discovery; sound risk management 

practices; and other public interest 

considerations. Accordingly, the 

Commission could in its discretion give 

greater weight to any one of the five 

enumerated areas and could in its 

discretion determine that, 

notwithstanding its costs, a particular 

order was necessary or appropriate to 

protect the public interest or to 

effectuate any of the provisions or to 

accomplish any of the purposes of the 

CEA. 

The Commission is considering the 

costs and benefits of this proposed order 

in light of the specific provisions of 

Section 15(a) of the CEA, as follows: 

1. Protection of market participants 

and the public. National securities 

exchanges, OCC and their members who 

would intermediate ST Gold Options 

are subject to extensive regulatory 

oversight. 

2. Efficiency, competition, and 

financial integrity. The proposed 

exemption may enhance market 

efficiency and competition since it 

could encourage potential trading of ST 

Gold Options on markets other than 

designated contract markets or 

derivative transaction execution 

facilities. Financial integrity will not be 

affected since the ST Gold Options will 

be cleared by OCC, a DCO and SECregistered clearing agency, and 

intermediated by SEC-registered brokerdealers. 

3. Price discovery. Price discovery 

may be enhanced through market 

competition. 

4. Sound risk management practices. 

The ST Gold Options will be subject to 

OCC’s current risk-management 

practices including its margining 

system. 

5. Other public interest 

considerations. The proposed 

exemption may encourage development 

of derivative products through market 

competition without unnecessary 

regulatory burden. 

After considering these factors, the 

Commission has determined to seek 

comment on the proposed order as 

discussed above. The Commission 

invites public comment on its 

application of the cost-benefit provision. 

* * * * * 

Issued in Washington, DC, on April 21, 

2008 by the Commission. 

David A. Stawick, 

Secretary of the Commission. 

Dissenting Opinion of Commissioner 

Bartholomew H. Chilton to Notice of 

Proposed Order pursuant to Section 4(c) of 

the CEA which would exempt certain 

products related to StreetTRACKS Gold Trust 

Shares traded on a national securities 

exchange and cleared by the Options 

Clearing Corporation from provisions of the 

CEA. 

I respectfully dissent from the 

Commission’s issuance of the abovereferenced proposed order. Should the CFTC 

ultimately approve this order, it is my hope 

and expectation that the SEC similarly will 

fully exercise its broad exemptive authority 

under the securities laws to permit futures 

exchanges to trade products that are 

economically equivalent to those that are or 

may be approved for trading on national 

securities exchanges, and to allow designated 

clearing organizations to clear such products, 

to ensure that the futures markets are not 

competitively disadvantaged with regard to 

such products. I dissent from today’s action, 

because I do not believe that the proposed 

order provides sufficient basis for or 

assurance of such reciprocity in the future. 

Bart Chilton, 

Commissioner, Commodity Futures Trading 

Commission. 

[FR Doc. E8–8942 Filed 4–22–08; 8:45 am] 

BILLING CODE 6351–01–P 

DEPARTMENT OF DEFENSE 

Office of the Secretary 

Defense Intelligence Agency National 

Defense Intelligence College Board of 

Visitors Closed Meeting 

AGENCY: Department of Defense, Defense 

Intelligence Agency, National Defense 

Intelligence College. 

ACTION: Notice of closed meeting. 

SUMMARY: Pursuant to the provisions of 

Subsection (d) of section 10 of Public 

Law 92–463, as amended by section 5 of 

Public Law 94–409, notice is hereby 

given that a closed meeting of the 

Defense Intelligence Agency National 

Defense Intelligence College Board of 

Visitors has been scheduled as follows. 

DATES: Tuesday, June 3, 2008 (8 a.m. to 

5 p.m.) and Wednesday, June 4, 2008 (8 

a.m. to 12 p.m.). 

ADDRESSES: National Defense 

Intelligence College, Washington, DC 

20340–5100. 

FOR FURTHER INFORMATION CONTACT: Mr. 

A. Denis Clift, President, Defense 

Intelligence Agency National Defense 

Intelligence College, Washington, DC 

20340–5100; telephone: (202) 231–3344. 

SUPPLEMENTARY INFORMATION: The entire 

meeting is devoted to the discussion of 

classified information as defined in 

section 552b(c)(1), Title 5 of the U.S. 

Code and therefore will be closed. The 

Board will discuss several current 

critical intelligence issues and advise 

the Director, DIA, as to the successful 

accomplishment of the mission assigned 

to the National Defense Intelligence 

College. 

Dated: April 16, 2008. 

Patricia L. Toppings, 

Alternate OSD Federal Register, Liaison 

Officer, Department of Defense. 

[FR Doc. E8–8801 Filed 4–22–08; 8:45 am] 

BILLING CODE 5001–06–P 

DEPARTMENT OF DEFENSE 

Office of the Secretary 

Defense Science Board Closed 

Meeting 

AGENCY: Department of Defense. 

ACTION: Notice of Advisory Committee 

meetings. 

SUMMARY: The Defense Science Board 

will meet in closed session on May 21–

22, 2008; at the Pentagon, Arlington, 

VA. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Debra Rose, Executive Officer, Defense 

Science Board, 3140 Defense Pentagon, 

Room 3B888A, Washington, DC 20301–

3140, via e-mail at debra.rose@osd.mil, 

or via phone at (703) 571–0084. 

SUPPLEMENTARY INFORMATION: The 

mission of the Defense Science Board is 

to advise the Secretary of Defense and 

the Under Secretary of Defense for 

Acquisition, Technology & Logistics on 

scientific and technical matters as they 

affect the perceived needs of the 

Department of Defense. At this meeting, 

the Board will discuss interim finding 

and recommendations resulting from 

ongoing Task Force activities. The 

mstockstill on PROD1PC66 with NOTICES