Technical Amendments to Rules Setting Forth the Method for Determining Market Capitalization and Dollar Value of Average Daily Trading Volume; Application of the Definition of Narrow-Based Security Index, 43748-43750 [05-15000]
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43748
Federal Register / Vol. 70, No. 145 / Friday, July 29, 2005 / Rules and Regulations
Administration Order 7400.9M, dated
August 30, 2004, and effective
September 16, 2004, is amended as
follows:
Paragraph 6005 Class E airspace areas
extending upward from 700 feet or more
above the surface of the earth.
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ACE KS E5 Abilene, KS
Abilene Municipal Airport, KS.
(Lat. 38°54′15″ N., long 97°14′09″ W.)
That airspace extending upward from 700
feet above the surface within a 6.9-mile
radius of Abilene Municipal Airport.
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Issued in Kansas City, MO, on July 18,
2005.
Elizabeth S. Wallis,
Acting Area Director, Western Flight Services
Operations.
[FR Doc. 05–14979 Filed 7–28–05; 8:45 am]
BILLING CODE 4910–13–M
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 71
[Docket No. FAA–2005–21907; Airspace
Docket No. 05–ANM–11]
RIN 2120–AA66
Revocation of Compulsory Reporting
Point; MT
Federal Aviation
Administration (FAA), DOT.
ACTION: Final rule.
AGENCY:
This action revokes the
GARRI Intersection as a compulsory
reporting point. GARRI Intersection is
located between the de-commissioned
Drummond, MT Very High Frequency
Omni-directional Range/Tactical Air
Navigation (VORTAC) and Butte, MT.
The FAA has determined that this
intersection is no longer needed in the
National Airspace System (NAS).
EFFECTIVE DATE: 0901 UTC, September 1,
2005.
FOR FURTHER INFORMATION CONTACT: Ken
McElroy, Airspace and Rules, Office of
System Operations and Safety, Federal
Aviation Administration, 800
Independence Avenue, SW.,
Washington, DC 20591; telephone: (202)
267–8783.
SUPPLEMENTARY INFORMATION:
SUMMARY:
Background
The Drummond Very High Frequency
Omni-directional Range (VOR) has been
out of service since April 2003, for the
reasons discussed below, and the site on
which the VOR was located was leased
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16:28 Jul 28, 2005
Jkt 205001
land. In 2002, the FAA learned that the
landowner had constructed a house
within 1,000 feet of the VOR without
providing proper notice to the FAA. The
VOR was temporarily taken out of
service until the impacts of the house
could be identified. A subsequent flight
check of the VOR indicated that the
house did not cause a problem;
however, large vehicles parked near the
VOR facility were interfering with the
integrity of the signal. As such, the
GARRI Intersection as a compulsory has
been NOTAMed out of service.
Additionally, subsequent to this
NOTAM action the Drummond VOR
was decommissioned on January 13,
2004.
The Rule
This action amends Title 14 Code of
Federal Regulations (14 CFR) part 71 by
revoking GARRI Intersection as a
compulsory reporting point. GARRI
Intersection is located between the decommissioned Drummond, MT
VORTAC and Butte, MT. The FAA has
determined this intersection is no longer
needed to support the NAS. This action
improves air safety and aids air traffic
management.
Domestic Low Altitude Reporting
Points are published in paragraph 7001
of FAA Order 7400.9M dated August 30,
2004, and effective September 16, 2004,
which is incorporated by reference in 14
CFR 71.1. The Low Altitude Reporting
Points listed in this document will be
removed subsequently in the order.
The FAA has determined that this
regulation only involves an established
body of technical regulations for which
frequent and routine amendments are
necessary to keep them operationally
current. Therefore, this proposed
regulation: (1) Is not a ‘‘significant
regulatory action’’ under Executive
Order 12866; (2) is not a ‘‘significant
rule’’ under Department of
Transportation (DOT) Regulatory
Policies and Procedures (44 FR 11034;
February 26, 1979); and (3) does not
warrant preparation of a regulatory
evaluation as the anticipated impact is
so minimal. Since this is a routine
matter that will only affect air traffic
procedures and air navigation, it is
certified that this rule, when
promulgated, will not have a significant
economic impact on a substantial
number of small entities under the
criteria of the Regulatory Flexibility Act.
List of Subjects in 14 CFR Part 71
Airspace, Incorporation by reference,
Navigation (air).
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Adoption of the Amendment
In consideration of the foregoing, the
Federal Aviation Administration
amends 14 CFR part 71 as follows:
I
PART 71—DESIGNATION OF CLASS A,
B, C, D, AND E AIRSPACE AREAS; AIR
TRAFFIC SERVICE ROUTES; AND
REPORTING POINTS
1. The authority citation for part 71
continues to read as follows:
I
Authority: 49 U.S.C. 106(g), 40103, 40113,
40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959–
1963 Comp., p. 389.
§ 71.1
[Amended]
2. The incorporation by reference in 14
CFR 71.1 of FAA Order 7400.9M,
Airspace Designations and Reporting
Points, dated August 30, 2004, and
effective September 16, 2004, is
amended as follows:
I
Paragraph 7001 Domestic Low Altitude
Reporting Points.
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7001 [Revoked]
GARRI:
INT Drummond, MT, 092≥ Butte, MT, 002≥
radials
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Issued in Washington, DC, July 22, 2005.
Edith V. Parish,
Acting Manager, Airspace and Rules.
[FR Doc. 05–14973 Filed 7–28–05; 8:45 am]
BILLING CODE 4910–13–P
COMMODITY FUTURES TRADING
COMMISSION
17 CFR Part 41
SECURITIES AND EXCHANGE
COMMISSION
17 CFR Part 240
[Release No. 34–52115; File No. S7–11–01]
Technical Amendments to Rules
Setting Forth the Method for
Determining Market Capitalization and
Dollar Value of Average Daily Trading
Volume; Application of the Definition
of Narrow-Based Security Index
Commodity Futures Trading
Commission and Securities and
Exchange Commission.
ACTION: Joint technical amendment.
AGENCIES:
SUMMARY: The Commodity Futures
Trading Commission (‘‘CFTC’’) and the
Securities and Exchange Commission
(‘‘SEC’’) (collectively ‘‘Commissions’’)
are adopting technical amendments to
certain references in rules under the
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Federal Register / Vol. 70, No. 145 / Friday, July 29, 2005 / Rules and Regulations
Commodity Exchange Act (‘‘CEA’’) and
the Securities Exchange Act of 1934
(‘‘Exchange Act’’) that set forth the
method for determining market
capitalization and dollar value of
average daily trading volume, to reflect
new terminology and rule designations
that will become effective as a result of
the adoption by the SEC of Regulation
NMS. Specifically, the phrase ‘‘reported
securities as defined in § 240.11Ac1–1’’
will be replaced with the phrase ‘‘NMS
securities as defined in § 242.600.’’
EFFECTIVE DATE: August 29, 2005.
FOR FURTHER INFORMATION CONTACT:
CFTC—Elizabeth Ritter, Assistant
General Counsel, Office of the General
Counsel, Commodity Futures Trading
Commission, Three Lafayette Centre,
1155 21st Street, NW., Washington, DC
20581. Telephone: (202) 418–5052.
SEC—Ira Brandriss, Special Counsel, at
(202) 551–5651; or Tim Fox, Attorney,
at (202) 551–5643, Office of Market
Supervision, Division of Market
Regulation, U.S. Securities and
Exchange Commission, 100 F Street,
NE., Washington, DC 20549.
SUPPLEMENTARY INFORMATION: The CFTC
is amending Rule 41.11 under the CEA,
17 CFR 41.11. The SEC is amending
Rule 3a55–1 under the Exchange Act, 17
CFR 240.3a55–1.1
I. Discussion
The Commodity Futures
Modernization Act (‘‘CFMA’’),2 which
became law on December 21, 2000,
established a framework for the joint
regulation of the trading of futures
contracts on single securities and
narrow-based security indexes
(collectively, ‘‘security futures
products’’) by the CFTC and the SEC.
Under the CFMA, designated contract
markets and registered derivatives
transaction execution facilities may
trade security futures products if they
register with the SEC and comply with
certain other requirements of the
Exchange Act.3 Likewise, national
securities exchanges and national
securities associations may trade
security futures products if they register
with the CFTC and comply with certain
other requirements of the CEA.4
To distinguish between security
futures on narrow-based security
indexes, which are jointly regulated by
the Commissions, and futures contracts
on broad-based security indexes, which
1 Rule 41.11 of Subpart B of Rule 41 (‘‘NarrowBased Security Indexes’’ ) under the CEA
corresponds to Rule 3a55–1 under the Exchange
Act.
2 Pub. L. 106–554, 114 Stat. 2763 (2000).
3 15 U.S.C. 78a et seq.
4 7 U.S.C. 1 et seq.
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16:28 Jul 28, 2005
Jkt 205001
are under the exclusive jurisdiction of
the CFTC, the CFMA also amended the
CEA and the Exchange Act by setting
forth an objective definition of ‘‘narrowbased security index,’’ and certain
exclusions from this definition.5
One of the criteria that can affect the
determination of whether an index is a
narrow-based security index under the
statutory definition relates to the dollar
value of the average daily trading
volume (‘‘ADTV’’) of component
securities of the index.6 One of the
exclusions from the definition depends,
in part, on whether each component
security of the index is one of the 750
securities with the largest market
capitalization and is one of 675
securities with the largest dollar value
of ADTV.7 The statutes require the
Commissions, by rule or regulation, to
jointly specify the method to be used to
determine market capitalization and
dollar value of ADTV for purposes of
these provisions.8
In fulfillment of this mandate, on
August 20, 2001, the Commissions
jointly adopted Rule 41.11 9 under the
CEA and Rule 3a55–1 10 under the
Exchange Act.11 These rules include
references to ‘‘reported securities as
defined in § 240.11Ac1–1.’’ 12 A new
regulation adopted by the SEC 13
changes the term ‘‘reported security’’ to
the term ‘‘NMS security,’’ which is
defined in new § 242.600. The
definition of ‘‘NMS security’’ under new
§ 242.600 is identical to the definition of
‘‘reported security’’ under previous
§ 240.11Ac1–1.
To reflect the change, the
Commissions are adopting conforming
changes to Rule 41.11 under the CEA
and Rule 3a55–1 under the Exchange
Act.14 Specifically, the phrase ‘‘reported
1a(25) of the CEA, 7 U.S.C. 1a(25), and
Section 3(a)(55) of the Exchange Act, 15 U.S.C.
78c(a)(55).
6 See Section 1a(25)(A) of the CEA, 7 U.S.C.
1a(25)(A), and Section 3a(55)(B) of the Exchange
Act, 15 U.S.C. 78c(a)(55)(B).
7 See Section 1a(25)(B) of the CEA, 7 U.S.C.
1a(25)(B), and Section 3a(55)(C) of the Exchange
Act, 15 U.S.C. 78c(a)(55)(C).
8 See Section 1a(25)(E) of the CEA, 7 U.S.C.
1a(25)(E), and Section 3a(55)(F) of the Exchange
Act, 15 U.S.C. 78c(a)(55)(F).
9 See 17 CFR 41.11.
10 See 17 CFR 240.3a55–1.
11 See Securities Exchange Act Release No. 44724
(August 20, 2001), 66 FR 44490 (August 23, 2001).
12 See 17 CFR 41.11(a)(2)(ii) and (b)(2)(ii)(B) and
17 CFR 240.3a55–1(a)(2)(ii) and (b)(2)(ii)(B).
13 See Securities Exchange Act Release No. 51808
(June 9, 2005), 70 FR 37496 (June 29, 2005)
(adopting Regulation NMS).
14 The SEC proposed to make the conforming
changes to Rule 3a55–1 under the Exchange Act in
the release re-proposing Regulations NMS. See
Securities Exchange Act Release No. 50870
(December 16, 2004), 69 FR 77424 (December 27,
2004) (File No. S7–10–04), at note 402. To comply
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5 Section
Frm 00009
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43749
securities as defined in § 240.11Ac1–1’’
that appears in Rules 41.11(a)(2)(ii) and
(b)(2)(ii)(B) under the CEA will be
replaced with the phrase ‘‘NMS
securities, as defined in § 242.600.’’ The
phrase ‘‘reported securities as defined in
§ 240.11Ac1–1’’ that appears in Rules
3a55–1(a)(2)(ii) and (b)(2)(ii)(B) under
the Exchange Act will be replaced with
the phrase ‘‘NMS securities as defined
in § 242.600 of this chapter.’’ The
amendments will take effect on August
29, 2005, the same day upon which
Regulation NMS becomes effective.
II. Certain Findings
Under the Administrative Procedure
Act (‘‘APA’’), notice of proposed
rulemaking is not required when an
agency, for good cause, finds ‘‘that
notice and public procedure thereon are
impracticable, unnecessary, or contrary
to the public interest.’’ 15 The
amendments described herein are nonsubstantive, technical changes that are
required to update existing terminology
and references in the relevant rules to
conform to the new terminology and
rule designations adopted by the SEC.
For these reasons, the Commissions find
that it is unnecessary to publish notice
of these amendments.16
III. Statutory Authority
Pursuant to the CEA and the
Exchange Act and, particularly, Section
1a(25)(E)(ii) of the CEA 17 and Sections
3(a)(55)(F)(ii) of the Exchange Act,18 the
Commissions are adopting technical
amendments to Rule 41.11(a)(2)(ii) and
(b)(2)(ii)(B) under the CEA 19 and Rule
3a55–1(a)(2)(ii) and (b)(2)(ii)(B) under
the Exchange Act.20
Text of Rules
List of Subjects
17 CFR Part 41
Security futures products.
with Section 1a(25)(E)(ii) of the CEA and Section
3(a)(55)(F)(ii) of the Exchange Act, the Commissions
are adopting, herewith the conforming changes
jointly.
15 5 U.S.C. 553(b)(3)(B).
16 For similar reasons, the amendments do not
require analysis under the Regulatory Flexibility
Act or analysis of major status under the Small
Business Regulatory Enforcement Fairness Act. See
5 U.S.C. 601(2) (for purposes of Regulatory
Flexibility Act analyses, the term ‘‘rule’’ means any
rule for which the agency publishes a general notice
of proposed rulemaking); 5 U.S.C. 804(3)(C) (for
purposes of congressional review of agency
rulemaking, the term ‘‘rule’’ does not include any
rule of agency organization, procedure, or practice
that does not substantially affect the rights or
obligations of non-agency parties).
17 7 U.S.C. 1a(25)(E)(ii).
18 15 U.S.C. 78c(a)(55)(F)(ii).
19 17 CFR 41.11(a)(2)(ii) and (b)(2)(ii)(B).
20 17 CFR 240.3a55–1(a)(2)(ii) and (b)(2)(ii)(B).
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43750
Federal Register / Vol. 70, No. 145 / Friday, July 29, 2005 / Rules and Regulations
17 CFR Part 240
2. Section 240.3a55–1 is amended by
revising paragraphs (a)(2)(ii) and
(b)(2)(ii)(B) to read as follows:
I
Securities.
Commodity Futures Trading
Commission
In accordance with the foregoing, Title
17, Chapter I, of the Code of Federal
Regulations is amended as follows:
I
PART 41—SECURITY FUTURES
PRODUCTS
1. The authority citation for part 41
continues to read as follows:
I
Authority: Sections 206, 251, 252, Pub. L.
106–554, 114 Stat. 2763; 7 U.S.C. 1a, 2, 6f,
6j, 7a–2, 12a; 15 U.S.C. 78g(c)(2).
2. Section 41.11 is amended by
revising paragraphs (a)(2)(ii) and
(b)(2)(ii)(B) to read as follows:
I
§ 41.11 Method for determining market
capitalization and dollar value of average
daily trading volume; application of the
definition of narrow-based security index.
(a) * * *
(2) * * *
(ii) The 750 securities with the largest
market capitalization shall be identified
from the universe of all NMS securities
as defined in § 242.600 that are common
stock or depositary shares.
(b) * * *
(2) * * *
(ii) * * *
(B) The 675 securities with the largest
dollar value of ADTV shall be identified
from the universe of all NMS securities
as defined in § 242.600 that are common
stock or depositary shares.
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In accordance with the foregoing, Title
17, Chapter II, of the Code of Federal
Regulations is amended as follows:
I
PART 240—GENERAL RULES AND
REGULATIONS, SECURITIES
EXCHANGE ACT OF 1934
1. The authority citation for part 240
continues to read, in part, as follows:
I
Authority: 15 U.S.C. 77c, 77d, 77g, 77j,
77s, 77z–2, 77z–3, 77eee, 77ggg, 77nnn,
77sss, 77ttt, 78c, 78d, 78e, 78f, 78g, 78i, 78j,
78j–1, 78k, 78k–1, 78l, 78m, 78n, 78o, 78p,
78q, 78s, 78u–5, 78w, 78x, 78ll, 78mm, 79q,
79t, 80a–20, 80a–23, 80a–29, 80a–37, 80b–3,
80b–4, 80b–11, and 7201 et seq.; and 18
U.S.C. 1350, unless otherwise noted.
VerDate jul<14>2003
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17:02 Jul 28, 2005
Jkt 205001
Dated: July 25, 2005.
By the Securities and Exchange
Commission.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 05–15000 Filed 7–28–05; 8:45 am]
BILLING CODE 8010–01–P; 6351–01–P
DEPARTMENT OF TRANSPORTATION
National Highway Traffic Safety
Administration
23 CFR Part 1327
RIN 2127–AI45
Securities and Exchange Commission
*
(a) * * *
(2) * * *
(ii) The 750 securities with the largest
market capitalization shall be identified
from the universe of all NMS securities
as defined in § 242.600 of this chapter
that are common stock or depositary
shares.
(b) * * *
(2) * * *
(ii) * * *
(B) The 675 securities with the largest
dollar value of ADTV shall be identified
from the universe of all NMS securities
as defined in § 242.600 of this chapter
that are common stock or depositary
shares.
*
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*
*
*
[Docket No. NHTSA–04–17326]
Dated: July 25, 2005.
By the Commodity Futures Trading
Commission.
Jean A. Webb,
Secretary.
*
§ 240.3a55–1 Method for determining
market capitalization and dollar value of
average daily trading volume; application of
the definition of narrow-based security
index.
Procedures for Participating in and
Receiving Data From the National
Driver Register Problem Driver Pointer
System
National Highway Traffic
Safety Administration (NHTSA),
Department of Transportation (DOT).
ACTION: Final rule.
AGENCY:
SUMMARY: This final rule amends the
agency’s National Driver Register (NDR)
regulations to implement new reporting
requirements mandated by the Motor
Carrier Safety Improvement Act of 1999
(MCSIA). MCSIA amended the NDR Act
to require that a State, before issuing or
renewing a motor vehicle operator’s
license, must verify an individual’s
eligibility to receive a license through
informational checks of both the NDR
and the Commercial Driver’s License
Information System (CDLIS). The final
PO 00000
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Fmt 4700
Sfmt 4700
rule amends the NDR regulations to
reflect this statutory change.
The final rule also provides an
updated listing of the NDR reporting
codes in the Appendix to reflect the
codes that should be implemented by
participating States by September 30,
2005. The final rule clarifies that pointer
records reported to the NDR must only
regard individuals who have been
convicted or whose license has been
denied, canceled, revoked, or
suspended for one of the offenses
identified in the Appendix. Finally, the
final rule adds a definition for the term
‘‘employers or prospective employers of
motor vehicle operators.’’
DATES: The final rule becomes effective
on September 27, 2005.
FOR FURTHER INFORMATION CONTACT: For
program issues: Mr. Sean McLaurin,
Chief, National Driver Register, NPO–
124, National Highway Traffic Safety
Administration, 400 Seventh Street,
SW., Washington, DC 20590. Telephone:
(202) 366–4800. For legal issues: Mr.
Roland (R.T.) Baumann III, AttorneyAdvisor, Office of the Chief Counsel,
NCC–113, National Highway Traffic
Safety Administration, 400 Seventh
Street, SW., Washington, DC 20590.
Telephone: (202) 366–1834.
SUPPLEMENTARY INFORMATION:
I. Background
On December 9, 1999, the Motor
Carrier Safety Improvement Act
(MCSIA) was signed into law (Pub. L.
106–159, Section 204), creating, in part,
a new requirement for States
participating in the National Driver
Register (NDR). The requirement
directed States to request from the
Secretary of Transportation information
from the NDR and the Commercial
Driver License Information System
(CDLIS) before issuing a motor vehicle
operator’s license to an individual or
renewing such a license (49 U.S.C.
30304(e)).
In establishing this new requirement,
Congress adopted the recommendation
of a 1999 study directed by the Office
of Motor Carriers of the Federal
Highway Administration that reviewed
the effectiveness of the Commercial
Driver License (CDL) program and its
general benefit to highway safety. The
study indicated that the CDL program
had been very successful in limiting
commercial motor vehicle operators to a
single license. However, the study also
indicated that vulnerabilities continued
to exist in enforcing the single license
requirement. States that did not check
the CDLIS when a CDL holder applied
for a non-commercial driver’s license
(non-CDL) allowed a CDL holder to
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]]>Agencies
[Federal Register Volume 70, Number 145 (Friday, July 29, 2005)]
[Rules and Regulations]
[Pages 43748-43750]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-15000]
=======================================================================
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COMMODITY FUTURES TRADING COMMISSION
17 CFR Part 41
SECURITIES AND EXCHANGE COMMISSION
17 CFR Part 240
[Release No. 34-52115; File No. S7-11-01]
Technical Amendments to Rules Setting Forth the Method for
Determining Market Capitalization and Dollar Value of Average Daily
Trading Volume; Application of the Definition of Narrow-Based Security
Index
AGENCIES: Commodity Futures Trading Commission and Securities and
Exchange Commission.
ACTION: Joint technical amendment.
-----------------------------------------------------------------------
SUMMARY: The Commodity Futures Trading Commission (``CFTC'') and the
Securities and Exchange Commission (``SEC'') (collectively
``Commissions'') are adopting technical amendments to certain
references in rules under the
[[Page 43749]]
Commodity Exchange Act (``CEA'') and the Securities Exchange Act of
1934 (``Exchange Act'') that set forth the method for determining
market capitalization and dollar value of average daily trading volume,
to reflect new terminology and rule designations that will become
effective as a result of the adoption by the SEC of Regulation NMS.
Specifically, the phrase ``reported securities as defined in Sec.
240.11Ac1-1'' will be replaced with the phrase ``NMS securities as
defined in Sec. 242.600.''
EFFECTIVE DATE: August 29, 2005.
FOR FURTHER INFORMATION CONTACT: CFTC--Elizabeth Ritter, Assistant
General Counsel, Office of the General Counsel, Commodity Futures
Trading Commission, Three Lafayette Centre, 1155 21st Street, NW.,
Washington, DC 20581. Telephone: (202) 418-5052. SEC--Ira Brandriss,
Special Counsel, at (202) 551-5651; or Tim Fox, Attorney, at (202) 551-
5643, Office of Market Supervision, Division of Market Regulation, U.S.
Securities and Exchange Commission, 100 F Street, NE., Washington, DC
20549.
SUPPLEMENTARY INFORMATION: The CFTC is amending Rule 41.11 under the
CEA, 17 CFR 41.11. The SEC is amending Rule 3a55-1 under the Exchange
Act, 17 CFR 240.3a55-1.\1\
---------------------------------------------------------------------------
\1\ Rule 41.11 of Subpart B of Rule 41 (``Narrow-Based Security
Indexes'' ) under the CEA corresponds to Rule 3a55-1 under the
Exchange Act.
---------------------------------------------------------------------------
I. Discussion
The Commodity Futures Modernization Act (``CFMA''),\2\ which became
law on December 21, 2000, established a framework for the joint
regulation of the trading of futures contracts on single securities and
narrow-based security indexes (collectively, ``security futures
products'') by the CFTC and the SEC. Under the CFMA, designated
contract markets and registered derivatives transaction execution
facilities may trade security futures products if they register with
the SEC and comply with certain other requirements of the Exchange
Act.\3\ Likewise, national securities exchanges and national securities
associations may trade security futures products if they register with
the CFTC and comply with certain other requirements of the CEA.\4\
---------------------------------------------------------------------------
\2\ Pub. L. 106-554, 114 Stat. 2763 (2000).
\3\ 15 U.S.C. 78a et seq.
\4\ 7 U.S.C. 1 et seq.
---------------------------------------------------------------------------
To distinguish between security futures on narrow-based security
indexes, which are jointly regulated by the Commissions, and futures
contracts on broad-based security indexes, which are under the
exclusive jurisdiction of the CFTC, the CFMA also amended the CEA and
the Exchange Act by setting forth an objective definition of ``narrow-
based security index,'' and certain exclusions from this definition.\5\
---------------------------------------------------------------------------
\5\ Section 1a(25) of the CEA, 7 U.S.C. 1a(25), and Section
3(a)(55) of the Exchange Act, 15 U.S.C. 78c(a)(55).
---------------------------------------------------------------------------
One of the criteria that can affect the determination of whether an
index is a narrow-based security index under the statutory definition
relates to the dollar value of the average daily trading volume
(``ADTV'') of component securities of the index.\6\ One of the
exclusions from the definition depends, in part, on whether each
component security of the index is one of the 750 securities with the
largest market capitalization and is one of 675 securities with the
largest dollar value of ADTV.\7\ The statutes require the Commissions,
by rule or regulation, to jointly specify the method to be used to
determine market capitalization and dollar value of ADTV for purposes
of these provisions.\8\
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\6\ See Section 1a(25)(A) of the CEA, 7 U.S.C. 1a(25)(A), and
Section 3a(55)(B) of the Exchange Act, 15 U.S.C. 78c(a)(55)(B).
\7\ See Section 1a(25)(B) of the CEA, 7 U.S.C. 1a(25)(B), and
Section 3a(55)(C) of the Exchange Act, 15 U.S.C. 78c(a)(55)(C).
\8\ See Section 1a(25)(E) of the CEA, 7 U.S.C. 1a(25)(E), and
Section 3a(55)(F) of the Exchange Act, 15 U.S.C. 78c(a)(55)(F).
---------------------------------------------------------------------------
In fulfillment of this mandate, on August 20, 2001, the Commissions
jointly adopted Rule 41.11 \9\ under the CEA and Rule 3a55-1 \10\ under
the Exchange Act.\11\ These rules include references to ``reported
securities as defined in Sec. 240.11Ac1-1.'' \12\ A new regulation
adopted by the SEC \13\ changes the term ``reported security'' to the
term ``NMS security,'' which is defined in new Sec. 242.600. The
definition of ``NMS security'' under new Sec. 242.600 is identical to
the definition of ``reported security'' under previous Sec. 240.11Ac1-
1.
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\9\ See 17 CFR 41.11.
\10\ See 17 CFR 240.3a55-1.
\11\ See Securities Exchange Act Release No. 44724 (August 20,
2001), 66 FR 44490 (August 23, 2001).
\12\ See 17 CFR 41.11(a)(2)(ii) and (b)(2)(ii)(B) and 17 CFR
240.3a55-1(a)(2)(ii) and (b)(2)(ii)(B).
\13\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496 (June 29, 2005) (adopting Regulation NMS).
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To reflect the change, the Commissions are adopting conforming
changes to Rule 41.11 under the CEA and Rule 3a55-1 under the Exchange
Act.\14\ Specifically, the phrase ``reported securities as defined in
Sec. 240.11Ac1-1'' that appears in Rules 41.11(a)(2)(ii) and
(b)(2)(ii)(B) under the CEA will be replaced with the phrase ``NMS
securities, as defined in Sec. 242.600.'' The phrase ``reported
securities as defined in Sec. 240.11Ac1-1'' that appears in Rules
3a55-1(a)(2)(ii) and (b)(2)(ii)(B) under the Exchange Act will be
replaced with the phrase ``NMS securities as defined in Sec. 242.600
of this chapter.'' The amendments will take effect on August 29, 2005,
the same day upon which Regulation NMS becomes effective.
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\14\ The SEC proposed to make the conforming changes to Rule
3a55-1 under the Exchange Act in the release re-proposing
Regulations NMS. See Securities Exchange Act Release No. 50870
(December 16, 2004), 69 FR 77424 (December 27, 2004) (File No. S7-
10-04), at note 402. To comply with Section 1a(25)(E)(ii) of the CEA
and Section 3(a)(55)(F)(ii) of the Exchange Act, the Commissions are
adopting, herewith the conforming changes jointly.
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II. Certain Findings
Under the Administrative Procedure Act (``APA''), notice of
proposed rulemaking is not required when an agency, for good cause,
finds ``that notice and public procedure thereon are impracticable,
unnecessary, or contrary to the public interest.'' \15\ The amendments
described herein are non-substantive, technical changes that are
required to update existing terminology and references in the relevant
rules to conform to the new terminology and rule designations adopted
by the SEC. For these reasons, the Commissions find that it is
unnecessary to publish notice of these amendments.\16\
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\15\ 5 U.S.C. 553(b)(3)(B).
\16\ For similar reasons, the amendments do not require analysis
under the Regulatory Flexibility Act or analysis of major status
under the Small Business Regulatory Enforcement Fairness Act. See 5
U.S.C. 601(2) (for purposes of Regulatory Flexibility Act analyses,
the term ``rule'' means any rule for which the agency publishes a
general notice of proposed rulemaking); 5 U.S.C. 804(3)(C) (for
purposes of congressional review of agency rulemaking, the term
``rule'' does not include any rule of agency organization,
procedure, or practice that does not substantially affect the rights
or obligations of non-agency parties).
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III. Statutory Authority
Pursuant to the CEA and the Exchange Act and, particularly, Section
1a(25)(E)(ii) of the CEA \17\ and Sections 3(a)(55)(F)(ii) of the
Exchange Act,\18\ the Commissions are adopting technical amendments to
Rule 41.11(a)(2)(ii) and (b)(2)(ii)(B) under the CEA \19\ and Rule
3a55-1(a)(2)(ii) and (b)(2)(ii)(B) under the Exchange Act.\20\
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\17\ 7 U.S.C. 1a(25)(E)(ii).
\18\ 15 U.S.C. 78c(a)(55)(F)(ii).
\19\ 17 CFR 41.11(a)(2)(ii) and (b)(2)(ii)(B).
\20\ 17 CFR 240.3a55-1(a)(2)(ii) and (b)(2)(ii)(B).
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Text of Rules
List of Subjects
17 CFR Part 41
Security futures products.
[[Page 43750]]
17 CFR Part 240
Securities.
Commodity Futures Trading Commission
0
In accordance with the foregoing, Title 17, Chapter I, of the Code of
Federal Regulations is amended as follows:
PART 41--SECURITY FUTURES PRODUCTS
0
1. The authority citation for part 41 continues to read as follows:
Authority: Sections 206, 251, 252, Pub. L. 106-554, 114 Stat.
2763; 7 U.S.C. 1a, 2, 6f, 6j, 7a-2, 12a; 15 U.S.C. 78g(c)(2).
0
2. Section 41.11 is amended by revising paragraphs (a)(2)(ii) and
(b)(2)(ii)(B) to read as follows:
Sec. 41.11 Method for determining market capitalization and dollar
value of average daily trading volume; application of the definition of
narrow-based security index.
(a) * * *
(2) * * *
(ii) The 750 securities with the largest market capitalization
shall be identified from the universe of all NMS securities as defined
in Sec. 242.600 that are common stock or depositary shares.
(b) * * *
(2) * * *
(ii) * * *
(B) The 675 securities with the largest dollar value of ADTV shall
be identified from the universe of all NMS securities as defined in
Sec. 242.600 that are common stock or depositary shares.
* * * * *
Dated: July 25, 2005.
By the Commodity Futures Trading Commission.
Jean A. Webb,
Secretary.
Securities and Exchange Commission
0
In accordance with the foregoing, Title 17, Chapter II, of the Code of
Federal Regulations is amended as follows:
PART 240--GENERAL RULES AND REGULATIONS, SECURITIES EXCHANGE ACT OF
1934
0
1. The authority citation for part 240 continues to read, in part, as
follows:
Authority: 15 U.S.C. 77c, 77d, 77g, 77j, 77s, 77z-2, 77z-3,
77eee, 77ggg, 77nnn, 77sss, 77ttt, 78c, 78d, 78e, 78f, 78g, 78i,
78j, 78j-1, 78k, 78k-1, 78l, 78m, 78n, 78o, 78p, 78q, 78s, 78u-5,
78w, 78x, 78ll, 78mm, 79q, 79t, 80a-20, 80a-23, 80a-29, 80a-37, 80b-
3, 80b-4, 80b-11, and 7201 et seq.; and 18 U.S.C. 1350, unless
otherwise noted.
* * * * *
0
2. Section 240.3a55-1 is amended by revising paragraphs (a)(2)(ii) and
(b)(2)(ii)(B) to read as follows:
Sec. 240.3a55-1 Method for determining market capitalization and
dollar value of average daily trading volume; application of the
definition of narrow-based security index.
(a) * * *
(2) * * *
(ii) The 750 securities with the largest market capitalization
shall be identified from the universe of all NMS securities as defined
in Sec. 242.600 of this chapter that are common stock or depositary
shares.
(b) * * *
(2) * * *
(ii) * * *
(B) The 675 securities with the largest dollar value of ADTV shall
be identified from the universe of all NMS securities as defined in
Sec. 242.600 of this chapter that are common stock or depositary
shares.
* * * * *
Dated: July 25, 2005.
By the Securities and Exchange Commission.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 05-15000 Filed 7-28-05; 8:45 am]
BILLING CODE 8010-01-P; 6351-01-P
