Federal Register / Vol. 75, No. 93 / Friday, May 14, 2010 / Notices 27381 

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

2 17 CFR 240.19b–4. 

3See Exchange Act Release No. 34–61439 

(January 28, 2010) 75 FR 5831 (February 4, 2010). 

principal underwriters of, and dealers 

in, the redeemable securities of any 

registered investment company to 

accomplish the same purposes as 

contemplated by Section 22(a). Rule 

22c–1 under the Act prohibits a 

registered investment company issuing 

any redeemable security, a person 

designated in such issuer’s prospectus 

as authorized to consummate 

transactions in any such security, and a 

principal underwriter of, or dealer in, 

such security, from selling, redeeming, 

or repurchasing any such security 

except at a price based on the current 

net asset value of such security which 

is next computed after receipt of a 

tender of such security for redemption 

or of an order to purchase or sell such 

security. 

8. Applicants state that it is possible 

that someone might view JNL New 

York’s recapture of the Contract 

Enhancements as resulting in the 

redemption of redeemable securities for 

a price other than one based on the 

current net asset value of the JNLNY 

Separate Account. Applicants contend, 

however, that the recapture of the 

Contract Enhancement does not violate 

Rule 22c–1. The recapture of some or all 

of the Contract Enhancement does not 

involve either of the evils that Section 

22(c) and Rule 22c–1 were intended to 

eliminate or reduce as far as reasonably 

practicable, namely: (i) The dilution of 

the value of outstanding redeemable 

securities of registered investment 

companies through their sale at a price 

below net asset value or repurchase at 

a price above it, and (ii) other unfair 

results, including speculative trading 

practices. To effect a recapture of a 

Contract Enhancement, JNL New York 

will redeem interests in a Contract 

owner’s contract value at a price 

determined on the basis of the current 

net asset value of the JNLNY Separate 

Account. The amount recaptured will be 

less than or equal to the amount of the 

Contract Enhancement that JNL New 

York paid out of its general account 

assets. Although Contract owners will 

be entitled to retain any investment 

gains attributable to the Contract 

Enhancement and to bear any 

investment losses attributable to the 

Contract Enhancement, the amount of 

such gains or losses will be determined 

on the basis of the current net asset 

values of the JNLNY Separate Account. 

Thus, no dilution will occur upon the 

recapture of the Contract Enhancement. 

Applicants also submit that the second 

harm that Rule 22c–1 was designed to 

address, namely, speculative trading 

practices calculated to take advantage of 

backward pricing, will not occur as a 

result of the recapture of the Contract 

Enhancement. Because neither of the 

harms that Rule 22c-1 was meant to 

address is found in the recapture of the 

Contract Enhancement, Rule 22c–1 

should not apply to any Contract 

Enhancement. However, to avoid any 

uncertainty as to full compliance with 

Rule 22c-1, Applicants request an order 

granting an exemption from the 

provisions of Rule 22c–1 to the extent 

deemed necessary to permit them to 

recapture the Contract Enhancement 

under the Contracts. 

9. Applicants submit that extending 

the requested relief to encompass Future 

Contracts and Other Accounts is 

appropriate in the public interest 

because it promotes competitiveness in 

the variable annuity market by 

eliminating the need to file redundant 

exemptive applications prior to 

introducing new variable annuity 

contracts. Investors would receive no 

benefit or additional protection by 

requiring Applicants to repeatedly seek 

exemptive relief that would present no 

issues under the Act not already 

addressed in the application. 

10. Applicants submit, for the reasons 

stated herein, that their exemptive 

request meets the standards set out in 

Section 6(c) of the Act, namely, that the 

exemptions requested are appropriate in 

the public interest and consistent with 

the protection of investors and the 

purposes fairly intended by the policy 

and provisions of the Act and that, 

therefore, the Commission should grant 

the requested order. 

For the Commission, by the Division of 

Investment Management, pursuant to 

delegated authority. 

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2010–11543 Filed 5–13–10; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–62054; File No. SR– 

NYSEArca–2010–34] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Adopt Commentary 

.02 to Rule 5.32, Terms of FLEX 

Options, to Establish a Pilot Program 

To Permit FLEX Options to Trade With 

no Minimum Size Requirement 

May 6, 2010. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’) 1, and Rule 19b–4 2 thereunder, 

notice is hereby given that on April 29, 

2010, NYSE Arca, Inc. (‘‘NYSE Arca’’ or 

the ‘‘Exchange’’) filed with the Securities 

and Exchange Commission (the 

‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the self-regulatory organization. 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 adopt 

Commentary .02 to Rule 5.32, Terms of 

FLEX Options, to establish a Pilot 

Program to permit FLEX Options to 

trade with no minimum size 

requirement. The text of the proposed 

rule change is attached as Exhibit 5 to 

the 19b–4 form. A copy of this filing is 

available on the Exchange’s Web site at 

http://www.nyse.com, at the Exchange’s 

principal office, at the Commission’s 

Public Reference Room, and on the 

Commission’s Web site at http:// 

www.sec.gov. 

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 

self-regulatory organization 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 

The purpose of the filing is to adopt 

rules to establish a Pilot Program to 

eliminate minimum value sizes for both 

FLEX Equity options and FLEX Index 

options similar to a pilot approved for 

the Chicago Board Options Exchange 

(‘‘CBOE’’).3

Presently, the Exchange minimum 

value size requirements for an opening 

FLEX Equity transaction in any FLEX 

series in which there is no open interest 


emcdonald on DSK2BSOYB1PROD with NOTICES
27382 Federal Register / Vol. 75, No. 93 / Friday, May 14, 2010 / Notices 

4See Note 3 above. 

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

6 15 U.S.C. 78f(b)(5). 

7 15 U.S.C. 78s(b)(3)(A). 

8 17 CFR 240.19b–4(f)(6). When filing a proposed 

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

Act, an Exchange is required to give the 

Commission written notice of its intent to file the 

proposed rule change, along with a brief description 

and text of the proposed rule change, at least five 

business days prior to the date of filing of the 

proposed rule change, or such shorter time as 

designated by the Commission. The Exchange has 

met this requirement. 

9 17 CFR 240.19b–4(f)(6)(iii). 

10 Id. 

11See CBOE Rule 24A.4 Interpretations and 

Policies .01(b); see also Securities Exchange Act 

Release No. 61439 (January 28, 2010) 75 FR 5831 

(February 4, 2010) (SR–CBOE–2009–087). 

12See Securities Exchange Act Release No. 61439 

(January 28, 2010) 75 FR 5831 (February 4, 2010) 

(SR–CBOE–2009–087). 

13For the purposes only of waiving the operative 

date of this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 

at the time the Request for Quote is 

submitted is the lesser of 250 contracts 

or the number of contracts overlying $1 

million in underlying securities. An 

opening FLEX Index transaction in a 

FLEX series in which there is no open 

interest requires a minimum size of $10 

million Underlying Equivalent Value. 

The Exchange proposes to adopt a 

fourteen month pilot program that 

eliminates the minimum value size 

requirements for both FLEX Equity and 

FLEX Index options. If, in the future, the 

Exchange proposes an extension of the 

minimum value size Pilot Program, or 

should the Exchange propose to make 

the new Program permanent, the 

Exchange will submit, along with any 

filing proposing such amendments to 

the Program, a Pilot Program report that 

would provide an analysis of the Pilot 

covering the period during which the 

Program was in effect. This minimum 

value size report would include: (i) Data 

and analysis on the open interest and 

trading volume in (a) FLEX Equity 

Options with opening transaction with 

a minimum size of 0 to 249 contracts 

and less than $1 million in underlying 

value; (b) FLEX Index Options with 

opening transaction with a minimum 

opening size of less than $10 million in 

underlying equivalent value; and (ii) 

analysis on the types of investors that 

initiated opening FLEX Equity and 

Index Options transactions (i.e., 

institutional, high net worth, or retail). 

The report would be submitted to the 

Commission at least two months prior to 

the expiration date of the Pilot Program 

and would be provided on a 

confidential basis. 

The Exchange notes that any positions 

established under this Pilot would not 

be affected by the expiration of the Pilot. 

For example, a 10-contract FLEX Equity 

Option opening position that overlies 

less than $1 million in the underlying 

security and expires in January 2015 

could be established during the 14- 

month Pilot. If the Pilot Program were 

not extended, the position would 

continue to exist and any further trading 

in the series would be subject to the 

minimum value size requirements for 

continued trading in that series. The 

proposed minimum opening transaction 

size elimination is based on a similar 

pilot approved for use on CBOE.4

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with Section 

6(b) 5 of the Securities Exchange Act of 

1934 (the ‘‘Act’’), in general, and furthers 

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

particular in that it is designed to 

promote just and equitable principles of 

trade, to prevent fraudulent and 

manipulative acts, to remove 

impediments to and to perfect the 

mechanism for a free and open market 

and a national market system and, in 

general, to protect investors and the 

public interest by eliminating a 

minimum size for FLEX transactions, 

which the Exchange believes will 

provide greater opportunities for 

investors to manage risk through the use 

of FLEX options. 

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 that is 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 solicited 

or received with respect to the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change does not: (1) Significantly affect 

the protection of investors or the public 

interest; (2) impose any significant 

burden on competition; and (3) become 

operative for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate if 

consistent with the protection of 

investors and the public interest, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 7 and Rule 19b– 

4(f)(6) thereunder.8

A proposed rule change filed under 

Rule 19b–4(f)(6) normally may not 

become operative prior to 30 days after 

the date of filing.9 However, Rule 19b– 

4(f)(6) 10 permits the Commission to 

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest. NYSE 

Arca has requested that the Commission 

waive the 30-day operative delay. 

The Commission has considered 

NYSE Arca’s request to waive the 30- 

day operative delay. Because, however, 

the Commission does not believe, 

practically speaking, that a pilot should 

retroactively commence, the 

Commission is only waiving the 

operative delay as of the date of this 

notice for the reasons discussed below. 

The Commission believes that 

shortening the 30-day operative delay to 

allow the commencement of the pilot as 

of the date of this notice is consistent 

with the protection of investors and the 

public interest. The Commission notes 

that the proposed rule change is 

substantially similar to a pilot that was 

previously approved by the Commission 

and is currently in existence for 

CBOE.11 The Commission also notes 

that the corresponding CBOE pilot was 

subject to full notice and comment in 

the Federal Register, and that the 

Commission only received comments 

that supported that proposal.12

Moreover, waiving the operative date as 

of the date of this notice is consistent 

with approval of CBOE’s pilot, which 

allowed implementation as of the date 

of the Commission’s approval order. For 

these reasons, the Commission 

designates the proposal to be operative 

upon the date of issuance of this 

notice.13

At any time within 60 days of the 

filing of such 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 the 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: 


emcdonald on DSK2BSOYB1PROD with NOTICES
Federal Register / Vol. 75, No. 93 / Friday, May 14, 2010 / Notices 27383 

14 17 CFR 200.30–3(a)(12). 

Electronic Comments 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an e-mail to 

rule-comments@sec.gov. Please include 

File Number SR–NYSEArca–2010–34 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–NYSEArca–2010–34. 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 Web site viewing and 

printing 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 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– 

NYSEArca–2010–34 and should be 

submitted on or before June 4, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2010–11542 Filed 5–13–10; 8:45 am] 

BILLING CODE 8010–01–P 

DEPARTMENT OF STATE 

[Public Notice 7003] 

Culturally Significant Objects Imported 

for Exhibition Determinations: ‘‘A Gift 

From the Desert: The Art, History and 

Culture of the Arabian Horse’’ 

SUMMARY: Notice is hereby given of the 

following determinations: Pursuant to 

the authority vested in me by the Act of 

October 19, 1965 (79 Stat. 985; 22 U.S.C. 

2459), Executive Order 12047 of March 

27, 1978, the Foreign Affairs Reform and 

Restructuring Act of 1998 (112 Stat. 

2681, et seq.; 22 U.S.C. 6501 note, et 

seq.), Delegation of Authority No. 234 of 

October 1, 1999, Delegation of Authority 

No. 236 of October 19, 1999, as 

amended, and Delegation of Authority 

No. 257 of April 15, 2003 [68 FR 19875], 

I hereby determine that the objects to be 

included in the exhibition ‘‘A Gift from 

the Desert: The Art, History and Culture 

of the Arabian Horse,’’ imported from 

abroad for temporary exhibition within 

the United States, are of cultural 

significance. The objects are imported 

pursuant to loan agreements with the 

foreign owners or custodians. I also 

determine that the exhibition or display 

of the exhibit objects at the International 

Museum of the Horse, from on or about 

May 29, 2010, until on or about October 

15, 2010, and at possible additional 

exhibitions or venues yet to be 

determined, is in the national interest. 

I have ordered that Public Notice of 

these Determinations be published in 

the Federal Register. 

FOR FURTHER INFORMATION CONTACT: For 

further information, including a list of 

the exhibit objects, contact Paul W. 

Manning, Attorney-Adviser, Office of 

the Legal Adviser, U.S. Department of 

State (telephone: 202–632–6469). The 

mailing address is U.S. Department of 

State, SA–5, L/PD, Fifth Floor (Suite 

5H03), Washington, DC 20522–0505. 

Dated: May 10, 2010. 

Maura M. Pally, 

Deputy Assistant Secretary for Professional 

and Cultural Exchanges, Bureau of 

Educational and Cultural Affairs, Department 

of State. 

[FR Doc. 2010–11604 Filed 5–13–10; 8:45 am] 

BILLING CODE 4710–05–P 

DEPARTMENT OF STATE 

[Public Notice 7002] 

Waiver of Restriction on Assistance To 

the Central Government of the Kyrgyz 

Republic 

Pursuant to section 7088(c)(2) of the 

Department of State, Foreign 

Operations, and Related Programs 

Appropriations Act, 2009 (Division H, 

Pub. L. 111–8) (‘‘the Act’’), and 

Department of State Delegation of 

Authority Number 245–1, I hereby 

determine that it is important to the 

national interest of the United States to 

waive the requirements of section 

7088(c)(1) of the Act with respect to the 

Government of the Kyrgyz Republic, 

and I hereby waive such restriction. 

This determination shall be reported 

to the Congress, and published in the 

Federal Register. 

Dated: May 5, 2010. 

Jacob J. Lew, 

Deputy Secretary of State for Management 

and Resources, Department of State. 

[FR Doc. 2010–11597 Filed 5–13–10; 8:45 am] 

BILLING CODE 4710–46–P 

DEPARTMENT OF TRANSPORTATION 

Surface Transportation Board 

[Docket No. AB 55 (Sub-No. 702X)] 

CSX Transportation, Inc.— 

Abandonment Exemption—in Marion 

County, IN. 

On April 26, 2010, CSX 

Transportation, Inc. (CSXT) filed with 

the Board a petition under 49 U.S.C. 

10502 for exemption from the 

provisions of 49 U.S.C. 10903 to 

abandon a 0.82-mile line of railroad in 

its Northern Region, Great Lakes 

Division, Indianapolis Terminal 

Subdivision, between milepost QSZ 

3.60 and milepost QSZ 4.42, known as 

the Speedway Running Track, in 

Indianapolis, Marion County, Ind. The 

line traverses United States Postal 

Service Zip Code 46222 and includes no 

stations. 

In addition to an exemption from the 

prior approval requirements of 49 U.S.C. 

10903, CSXT seeks exemption from 49 

U.S.C. 10904 [offer of financial 

assistance (OFA) procedures]. In 

support, CSXT states that it intends to 

reclassify the track as excepted track 

and sell or lease it to Heritage-Crystal 

Clean (HCC), the only shipper on the 

line. According to CSXT, the line is no 

longer needed for common carrier 

service, and HCC wants to acquire and 

maintain the line to allow for expanded 

intra-plant operations and rail use 

without incurring a common carrier 

obligation. This request will be 

addressed in the final decision. 

The line does not contain federally 

granted rights-of-way. Any 

documentation in CSXT’s possession 

will be made available promptly to 

those requesting it. 


emcdonald on DSK2BSOYB1PROD with NOTICES