58698 Federal Register / Vol. 73, No. 195 / Tuesday, October 7, 2008 / Notices 

1Exchange Act Release No. 58588 (Sept. 18, 

2008). 

1 15 U.S.C. 78l(k)(2). 

2See Securities Exchange Act Release No. 58572 

(Sept. 17, 2008). 

3See http://www.sec.gov/divisions/marketreg/

204tfaq.htm and http://www.sec.gov/divisions/

marketreg/loanedsecuritiesfaq.htm. 

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

For the Commission, by the Division of 

Investment Management, under delegated 

authority. 

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–23689 Filed 10–6–08; 8:45 am] 

BILLING CODE 8011–01–P 

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[Release No. 58703] 

Order Extending Emergency Order 

Pursuant to Section 12(k)(2) of the 

Securities Exchange Act of 1934 

Taking Temporary Action To Respond 

to Market Developments 

October 1, 2008. 

On September 18, 2008, the 

Commission issued an Emergency Order 

pursuant to Section 12(k)(2) of the 

Securities Exchange Act of 1934 

(‘‘Exchange Act’’) (the ‘‘Order’’) 

temporarily broadening Exchange Act 

Rule 10b–18’s safe harbor from liability 

for issuer repurchases in order to 

facilitate orderly markets.1 That Order 

became effective at 12:01 a.m. E.D.T. on 

September 19, 2008, and is currently set 

to terminate at 11:59 p.m. E.D.T. on 

October 2, 2008. 

Pursuant to our authority under 

Section 12(k)(2)(C) of the Exchange Act, 

we are extending the Order. Section 

12(k)(2)(C) authorizes the Commission 

to extend an emergency order issued 

pursuant to Section 12(k)(2)(A) of the 

Exchange Act for a total effective period 

of up to 30 calendar days, if the 

Commission finds that the emergency 

still exists and determines that an 

extension is necessary in the public 

interest and for the protection of 

investors to maintain fair and orderly 

securities markets. 

We have carefully reevaluated the 

current state of the markets and we 

remain concerned about the potential of 

sudden and excessive fluctuations of 

securities prices generally and 

disruption in the functioning of the 

securities markets that could threaten 

fair and orderly markets. Issuer 

repurchases can represent an important 

source of liquidity during these times of 

market volatility. Thus, we have 

determined in this environment that the 

standards under Section 12(k)(2) for 

extending the Order have been met. 

Accordingly, the Commission has 

determined that extending the Order is 

in the public interest and necessary to 

maintain fair and orderly securities 

markets and for the protection of 

investors. 

Therefore, it is ordered, pursuant to 

Section 12(k)(2)(C) of the Exchange Act, 

that the Order is extended such that it 

will terminate at 11:59 p.m. E.D.T. on 

Friday, October 17, 2008. 

By the Commission. 

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–23613 Filed 10–6–08; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 58711] 

Order Extending Emergency Order 

Pursuant to Section 12(k)(2) of the 

Securities Exchange Act of 1934 

Taking Temporary Action To Respond 

to Market Developments 

October 1, 2008. 

Pursuant to Section 12(k)(2) of the 

Securities Exchange Act of 1934 

(‘‘Exchange Act’’),1 on September 17, 

2008, the Securities and Exchange 

Commission (‘‘Commission’’) issued an 

Emergency Order (the ‘‘Order’’) aimed at 

further reducing fails to deliver and 

addressing potentially abusive ‘‘naked’’ 

short selling in all equity securities.2

The Order became effective at 12:01 

a.m. E.D.T. on September 18, 2008 and 

is currently set to terminate at 11:59 

p.m. E.D.T. on October 1, 2008. 

Pursuant to our authority under 

Section 12(k)(2)(C) of the Exchange Act, 

we are extending the Order. Section 

12(k)(2)(C) authorizes the Commission 

to extend an emergency order issued 

pursuant to Section 12(k)(2)(A) of the 

Exchange Act for a total effective period 

of up to 30 calendar days, if the 

Commission finds that the emergency 

still exists and determines that an 

extension is necessary in the public 

interest and for the protection of 

investors to maintain fair and orderly 

securities markets. 

We have carefully reevaluated the 

current state of the markets and we 

remain concerned about the potential of 

sudden and excessive fluctuations of 

securities prices generally and 

disruption in the functioning of the 

securities markets that could threaten 

fair and orderly markets. We intend the 

enhanced delivery requirements 

(temporary Rule 204T and elimination 

of the options market maker exception) 

imposed by the Order and the ‘‘naked’’ 

short selling antifraud rule to provide 

powerful disincentives to those who 

might otherwise exacerbate artificial 

price movements through ‘‘naked’’ short 

selling. Thus, we have determined in 

this environment that the standards 

under Section 12(k)(2) for extending the 

Order have been met. Accordingly, we 

have determined that extending the 

Order is in the public interest and 

necessary to maintain fair and orderly 

securities markets and for the protection 

of investors. 

In addition, we note that Staff of the 

Division of Trading and Markets has 

issued guidance regarding the Order to 

address current and anticipated 

technical and operational concerns 

resulting from the requirements of the 

Order.3 The guidance will continue to 

apply for the duration of the Order and 

the Commission hereby incorporates 

and adopts the guidance. 

It is therefore ordered that, pursuant 

to Section 12(k)(2)(C) of the Exchange 

Act, the Commission hereby 

incorporates and adopts the Division of 

Trading and Markets: Guidance 

Regarding the Commission’s Emergency 

Order Concerning Rules to Protect 

Investors Against ‘‘Naked’’ Short Selling 

Abuses and the Division of Trading and 

Markets Guidance Regarding Sale of 

Loaned but Recalled Securities. 

It is further ordered that, pursuant to 

Section 12(k)(2)(C) of the Exchange Act, 

the Order is extended such that it will 

terminate at 11:59 p.m. E.D.T. on 

Friday, October 17, 2008. 

By the Commission. 

Florence E. Harmon, 

Acting Secretary. 

[FR Doc. E8–23614 Filed 10–6–08; 8:45 am] 

BILLING CODE 8011–01–P 

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[Release No. 34–58696; File No. SR–FICC– 

2008–04] 

Self-Regulatory Organizations; Fixed 

Income Clearing Corporation; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Amend the 

Rules of the Government Securities 

Division To Expand the Types of 

Securities Eligible for the GCF Repo 

Service 

September 30, 2008. 

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

Securities Exchange Act of 1934 

(‘‘Act’’),1 notice is hereby given that on 

mstockstill on PROD1PC66 with NOTICES