48268 Federal Register / Vol. 73, No. 160 / Monday, August 18, 2008 / Notices 

74For the period of time that the current NYSE 

Rule 98 stays in the NYSE Rules as ‘‘NYSE Rule 98 

(Former),’’ each of NYSE Rules 99, 103B, 104, and 

113 will have two forms: One to meet the 

requirements of NYSE Rule 98 (Former) and one to 

meet the requirements of proposed NYSE Rule 98. 

The version of the rules that relate to NYSE Rule 

98 (Former) will be similarly designated with the 

‘‘(Former)’’ title either for the entire rule, or for a 

section of a rule, as appropriate. 

75The prohibitions in current NYSE Rule 460.10 

do not apply if the security is a convertible security, 

American Depositary Receipt, Global Depositary 

Receipt or exchange-traded funds tied to the equity 

securities, current or index warrants. 

76See Amendment No. 1, supra note 4. 

77 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Amendment No. 2 replaced and superseded the 

original filing and Amendment No. 1 in their 

entirety. 

4Exchange Act Release No. 58045 (June 26, 2008), 

73 FR 38487. 

Under the proposed amendments to 

NYSE Rule 98A, approved persons 

would no longer be required to agree in 

writing not to cause a specialist or oddlot dealer to violate rules applicable to 

the specialist or odd-lot dealer. 

Approved persons also would no longer 

be required to report any off-Floor 

orders for securities in which an 

associated specialist member 

organization specializes for any account 

in which the approved person has a 

direct or indirect interest to the 

Exchange. The Commission believes 

that the elimination of these 

requirements is consistent with the Act 

because, under proposed NYSE Rule 98, 

the specialist unit would be walled-off 

from approved persons. 

2. Proposed Amendments to NYSE 

Rules 99, 102, 103B, 104, and 113 

NYSE Rules 99, 103B, 104, and 113 

currently specifically apply to approved 

persons, unless such approved person 

has obtained an exemption under Rule 

98. Under the proposed rule change, 

current NYSE Rules 99, 103B, 104, and 

113 would be amended to remove 

references to approved persons.74 The 

Commission believes that the 

elimination of the references to 

approved persons in these rules is 

consistent with the Act because, under 

proposed NYSE Rule 98, the specialist 

unit would be walled-off from approved 

persons. 

NYSE Rule 102 currently governs 

trading in related products by an oddlot dealer. The Commission believes 

that the deletion of current NYSE Rule 

102 is consistent with the Act. The 

Commission notes that the Exchange no 

longer has separate odd-lot dealers and 

all specialists are also responsible for 

odd-lot trading in securities in which 

they are registered. The Commission 

also notes that specialists would be 

subject to the standards set forth in 

proposed Rules NYSE 98 and 105. 

3. Proposed Amendments to NYSE Rule 

460 

Current NYSE Rule 460.10 prohibits a 

specialist, its member organization or 

approved person (or officer or employee 

thereof) from, individually or in the 

aggregate, owning more than 10% of the 

outstanding shares of any equity 

security in which the specialist is 

registered.75 Current NYSE Rule 460.10 

also requires such person to report to 

the NYSE when it, directly or indirectly, 

acquires more than 5% of the 

outstanding shares of such equity 

security and promptly dispose or reduce 

such interest if advised to do so by the 

Exchange. A specialist, its member 

organization or approved person (or 

officer or employee thereof) may exceed 

the 10% ownership threshold for 

derivative securities whose values are 

based on an underlying currency or 

index only with the approval of the 

NYSE; however, in no event may such 

person directly or indirectly own more 

than 25% of such derivative securities. 

The proposed amendments to NYSE 

Rule 460 would make changes so that it 

would apply only to the specialist 

member and his specialist unit and not 

to his member organization or approved 

persons. In addition, the proposed 

amendments would replace the 10% 

ownership limitation set forth in NYSE 

Rule 460.10 with a requirement that the 

specialist unit report to the Exchange 

the beneficial ownership of more than 

5% of an equity security that is 

allocated to it. The specialist unit would 

be required to update such reports if its 

beneficial ownership exceeds 10% or 

falls below 5%. In addition, the 

specialist unit would be prohibited from 

acquiring, directly or indirectly, more 

than 25% of the outstanding shares in 

any security allocated to the specialist 

unit. 76 The proposed amendments to 

NYSE Rule 460 would apply to 

specialist units operating under 

proposed NYSE Rule 98, as well as to 

specialist member organizations that 

continue to operate under NYSE Rule 98 

(Former). 

The Commission believes that the 

proposed changes to NYSE Rule 460.10 

are consistent with the Act. Consistent 

with the NYSE’s proposed changes to 

Rule 98, the changes to Rule 460 would 

apply the restrictions in the rule only to 

the specialist. The Commission believes 

that, because of the policies and 

procedures a specialist unit or any 

integrated proprietary aggregation unit 

in which it is a part would be required 

to implement, these changes to Rule 460 

are consistent with the Act. Further, the 

Commission believes that, because of 

the increased competition among 

markets in NYSE listed securities, the 

elimination of the restrictions in Rule 

460.10 are consistent with the Act. 

IV. Conclusion 

It is therefore ordered, pursuant to 

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

proposed rule change (SR–NYSE–2008–

45), as modified by Amendment No. 1, 

be, and it hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.77

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–18964 Filed 8–15–08; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–58340; File No. SR–Phlx–

2007–33] 

Self-Regulatory Organizations; 

Philadelphia Stock Exchange, Inc.; 

Order Granting Approval of a 

Proposed Rule Change, as Modified by 

Amendment Nos. 1 and 2 Thereto, 

Relating to Margining 

August 11, 2008. 

On April 5, 2007, the Philadelphia 

Stock Exchange, Inc. (‘‘Phlx’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’), pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Act’’ or ‘‘Exchange Act’’),1 and 

Rule 19b–4 2 thereunder, a proposed 

rule change to amend its margin rules. 

On July 31, 2007, Phlx filed 

Amendment No. 1 to the proposed rule 

change. On May 19, 2008, Phlx filed 

Amendment No. 2 to the proposed rule 

change.3 The proposal was published in 

the Federal Register on July 7, 2008.4

The Commission received no comments 

on the proposal. This order approves the 

proposed rule change, as modified by 

Amendment Nos. 1 and 2. 

The Exchange proposed to streamline 

and make more efficient its margin rules 

and procedures by: (1) Adding a new 

section to Rule 721 (Proper and 

Adequate Margin) requiring each 

member to indicate in writing to the 

Exchange that such member shall be 

bound by the initial and maintenance 

margin requirements of either the 

Chicago Board Options Exchange 

(‘‘CBOE’’) or New York Stock Exchange 

(‘‘NYSE’’); and (2) eliminating Rules 724 

(Guaranteed Accounts) and 725 (Daily 


sroberts on PROD1PC70 with NOTICES
Federal Register / Vol. 73, No. 160 / Monday, August 18, 2008 / Notices 48269 

5 In approving this proposed rule change, the 

Commission has considered the proposed rule’s 

impact on efficiency, competition, and capital 

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

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

7See Exchange Act Release Nos. 48355 (August 

22, 2003), 68 FR 50813 (August 22, 2003) (SR–BSE–

2002–15); and 49260 (February 14, 2004), 69 FR 

8500 (February 24, 2004) (approval, among other 

things, of ISE rule incorporating CBOE and NYSE 

margin rules). The Exchange has, under separate 

cover, submitted a letter seeking an exemption 

under Section 36 of the Act from the rule filing 

procedures of Section 19(b) of the Act with respect 

to changes to the incorporated CBOE and NYSE 

margin rules going forward. 

8 15 U.S.C. 78s(b)(2). 

9 17 CFR 200.30–3(a)(12). 

Record of Required Margin). The 

Exchange also proposes to significantly 

shorten Rules 723 (Day Trading and 

Prohibition on Free-Riding in Cash 

Accounts) and 722 (Margin Accounts) to 

eliminate redundant language while 

retaining those margin requirements 

that are unique to current Exchange 

margin rules. At the same time, the 

Exchange proposes to retain those 

margin provisions that are unique to 

current Exchange margin rules, 

particularly those pertaining to foreign 

currency options, which only trade on 

Phlx. 

After careful review of the proposal, 

the Commission finds that the proposed 

rule change is consistent with the 

requirements of the Act and the rules 

and regulations thereunder applicable to 

a national securities exchange.5 In 

particular, the Commission finds that 

the proposal is consistent with Section 

6(b)(5) of the Act,6 which requires, 

among other things that the rules of an 

exchange be designed to prevent 

fraudulent and manipulative acts and 

practices, to promote just and equitable 

principles of trade, to remove 

impediments to and to 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 Commission believes that this 

proposed rule change will streamline 

the Exchange’s margin rules 

commensurate with industry practice. 

The Commission notes that the 

proposed rule change will require Phlx 

member organizations to elect, via 

written notice to the Exchange, to use 

and follow the margin rules of either 

CBOE or NYSE as they are in effect from 

time to time. The Commission also 

notes that this proposal to incorporate 

CBOE or NYSE margin rules is similar 

to the approach used by the 

International Securities Exchange and 

the Boston Options Exchange requiring 

their members to elect and follow CBOE 

or NYSE margin rules and incorporating 

such rules by reference into their own 

rules.7

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,8 that the 

proposed rule change (SR–Phlx–2007–

33), as modified by Amendment Nos. 1 

and 2, be, and hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–19029 Filed 8–18–08; 8:45 am] 

BILLING CODE 8010–01–P 

DEPARTMENT OF TRANSPORTATION 

Office of the Secretary 

Application of Air Greco, Inc. D/B/A 

Wings Air for Commuter Authority 

AGENCY: Department of Transportation. 

ACTION: Notice of Order to Show Cause 

(Order 2008–8–9), Docket DOT–OST–

2008–0154. 

SUMMARY: The Department of 

Transportation is directing all interested 

persons to show cause why it should 

not issue an order finding Air Greco, 

Inc. d/b/a Wings Air fit, willing, and 

able, and awarding it Commuter Air 

Carrier Authorization. 

DATES: Persons wishing to file 

objections should do so no later than 

August 21, 2008. 

ADDRESSES: Objections and answers to 

objections should be filed in Docket 

DOT–OST–2008–0154 and addressed to 

U.S. Department of Transportation, 

Docket Operations, (M–30, Room W12–

140), 1200 New Jersey Avenue, SE., 

West Building Ground Floor, 

Washington, DC 20590, and should be 

served upon the parties listed in 

Attachment A to the order. 

FOR FURTHER INFORMATION CONTACT: Rick 

Pittaway, Air Carrier Fitness Division 

(X–56, Room W86–467), U.S. 

Department of Transportation, 1200 

New Jersey Avenue, SE., Washington, 

DC 20590, (202) 366–9721. 

Dated: August 12, 2008. 

Michael W. Reynolds, 

Acting Assistant Secretary for Aviation and 

International Affairs. 

[FR Doc. E8–19055 Filed 8–15–08; 8:45 am] 

BILLING CODE 4910–9X–P 

DEPARTMENT OF TRANSPORTATION 

Federal Motor Carrier Safety 

Administration 

[Docket No. FMCSA–99–6480; FMCSA–99–

5578; FMCSA–99–5748; FMCSA–01–11426; 

FMCSA–02–12294; FMCSA–04–17195; 

FMCSA–05–22194; FMCSA–06–24783] 

Qualification of Drivers; Exemption 

Applications; Vision 

AGENCY: Federal Motor Carrier Safety 

Administration (FMCSA), DOT. 

ACTION: Notice of renewal of 

exemptions; request for comments. 

SUMMARY: FMCSA announces its 

decision to renew the exemptions from 

the vision requirement in the Federal 

Motor Carrier Safety Regulations for 16 

individuals. FMCSA has statutory 

authority to exempt individuals from 

the vision requirement if the 

exemptions granted will not 

compromise safety. The Agency has 

concluded that granting these 

exemption renewals will provide a level 

of safety that is equivalent to, or greater 

than, the level of safety maintained 

without the exemptions for these 

commercial motor vehicle (CMV) 

drivers. 

DATES: This decision is effective 

September 9, 2008. Comments must be 

received on or before September 17, 

2008. 

ADDRESSES: You may submit comments 

bearing the Federal Docket Management 

System (FDMS) Docket ID FMCSA–99–

6480; FMCSA–99–5578; FMCSA–99–

5748; FMCSA–01–11426; FMCSA–02–

12294; FMCSA–04–17195; FMCSA–05–

22194; FMCSA–06–24783, using any of 

the following methods. 

• Federal eRulemaking Portal: Go to 

http://www.regulations.gov. Follow the 

on-line instructions for submitting 

comments. 

• Mail: Docket Management Facility; 

U.S. Department of Transportation, 1200 

New Jersey Avenue, SE., West Building 

Ground Floor, Room W12–140, 

Washington, DC 20590–0001. 

• Hand Delivery or Courier: West 

Building Ground Floor, Room W12–140, 

1200 New Jersey Avenue, SE., 

Washington, DC, between 9 a.m. and 5 

p.m., Monday through Friday, except 

Federal Holidays. 

• Fax: 1–202–493–2251. 

Each submission must include the 

Agency name and the docket number for 

this Notice. Note that DOT posts all 

comments received without change to 

http://www.regulations.gov, including 

any personal information included in a 

comment. Please see the Privacy Act 

heading below. 


sroberts on PROD1PC70 with NOTICES