Securities Exchange Act of 1934; Amendment to Emergency Order Pursuant to Section 12(K)(2) of the Securities Exchange Act of 1934 Taking Temporary Action To Respond to Market Developments, 42837-42838 [E8-16863]

Download as PDF mstockstill on PROD1PC66 with NOTICES Federal Register / Vol. 73, No. 142 / Wednesday, July 23, 2008 / Notices apply for and receive a digital ID certificate before a hearing request/ petition to intervene is filed so that they can obtain access to the document via the E-Filing system. A person filing electronically may seek assistance through the ‘‘Contact Us’’ link located on the NRC Web site at http://www.nrc.gov/site-help/esubmittals.html or by calling the NRC technical help line, which is available between 8:30 a.m. and 4:15 p.m., Eastern Time, Monday through Friday. The help line number is (800) 397–4209 or locally, (301) 415–4737. Participants who believe that they have a good cause for not submitting documents electronically must file a motion, in accordance with 10 CFR 2.302(g), with their initial paper filing requesting authorization to continue to submit documents in paper format. Such filings must be submitted by: (1) First class mail addressed to the Office of the Secretary of the Commission, U.S. Nuclear Regulatory Commission, Washington, DC 20555–0001, Attention: Rulemaking and Adjudications Staff; or (2) courier, express mail, or expedited delivery service to the Office of the Secretary, Sixteenth Floor, One White Flint North, 11555 Rockville Pike, Rockville, Maryland 20852, Attention: Rulemaking and Adjudications Staff. Participants filing a document in this manner are responsible for serving the document on all other participants. Filing is considered complete by firstclass mail as of the time of deposit in the mail, or by courier, express mail, or expedited delivery service upon depositing the document with the provider of the service. Non-timely requests and/or petitions and contentions will not be entertained absent a determination by the Commission, the presiding officer, or the Atomic Safety and Licensing Board that the petition and/or request should be granted and/or the contentions should be admitted, based on a balancing of the factors specified in 10 CFR 2.309(c)(1)(i)–(viii). To be timely, filings must be submitted no later than 11:59 p.m. Eastern Time on the due date. Documents submitted in adjudicatory proceedings will appear in NRC’s electronic hearing docket which is available to the public at http:// www.ehd.nrc.gov/EHD_Proceeding/ home.asp, unless excluded pursuant to an order of the Commission, an Atomic Safety and Licensing Board, or a Presiding Officer. Participants are requested not to include personal privacy information, such as social security numbers, home addresses, or home phone numbers in their filings. VerDate Aug<31>2005 18:14 Jul 22, 2008 Jkt 214001 With respect to copyrighted works, except for limited excerpts that serve the purpose of the adjudicatory filings and would constitute a Fair Use application, Participants are requested not to include copyrighted materials in their submissions. For further details with respect to this license amendment application, see the application for amendment dated August 29, 2006, as supplemented November 6, November 27, 2006, January 30, June 22, July 16, August 13, October 18, December 11, 2007, January 24, February 4, February 25 (two letters, nos. 1389 and 0175), February 27, March 13, April 1, May 5, June 25, July 2, and July 14, 2008, which is available for public inspection at the Commission’s PDR, located at One White Flint North, File Public Area O1 F21, 11555 Rockville Pike (first floor), Rockville, Maryland. Publicly available records will be accessible electronically from the Agencywide Documents Access and Management System’s (ADAMS) Public Electronic Reading Room on the Internet at the NRC Web site, http://www.nrc.gov/reading-rm/ adams.html. Persons who do not have access to ADAMS or who encounter problems in accessing the documents located in ADAMS, should contact the NRC PDR Reference staff by telephone at 1–800–397–4209, 301–415–4737, or by e-mail to pdr@nrc.gov. Dated at Rockville, Maryland, this 14th day of July 2008. For the Nuclear Regulatory Commission. R. E. Martin, Senior Project Manager, Plant Licensing Branch II–1, Division of Operating Reactor Licensing, Office of Nuclear Reactor Regulation. [FR Doc. E8–16908 Filed 7–22–08; 8:45 am] BILLING CODE 7590–01–P 42837 6. Governors’ Executive Session— Discussion of prior agenda items and Board Governance. Tuesday, July 29 at 8:30 a.m. (Closed) 1. Continuation of Monday’s closed session agenda. CONTACT PERSON FOR MORE INFORMATION: Julie S. Moore, Secretary of the Board, U.S. Postal Service, 475 L’Enfant Plaza, SW., Washington, DC 20260–1000, Telephone (202) 268–4800. Julie S. Moore, Secretary. [FR Doc. E8–16688 Filed 7–22–08; 8:45 am] BILLING CODE 7710–12–M SECURITIES AND EXCHANGE COMMISSION [Release No. 58190/July 18, 2008] Securities Exchange Act of 1934; Amendment to Emergency Order Pursuant to Section 12(K)(2) of the Securities Exchange Act of 1934 Taking Temporary Action To Respond to Market Developments Pursuant to Section 12(k)(2) of the Securities Exchange Act of 1934,1 on July 15, 2008, the Securities and Exchange Commission (‘‘Commission’’) issued an Emergency Order (the ‘‘Order’’) related to short selling securities of certain specified substantial financial firms.2 The Order takes effect on July 21, 2008. The Commission delayed the effective date to create the opportunity to address, and to allow sufficient time for market participants to make, adjustments to their operations to implement the enhanced requirements. The anticipated operational accommodations necessary for implementation of the Order are addressed herein. POSTAL SERVICE A. Bona Fide Market Makers Board of Governors; Sunshine Act Meeting The borrow and arrangement-toborrow requirement of the Order does not apply to certain bona fide market makers. (The settlement date delivery requirement of the Order applies to these market makers.) The purpose of this accommodation is to permit market makers to facilitate customer orders in a fast-moving market without possible delays associated with complying with the borrow and arrangement-to-borrow requirement of the Order. It is therefore ordered that, pursuant to our Section 12(k)(2) powers, the 5 p.m., Monday, July 28; and 8:30 a.m., Tuesday, July 29, 2008. PLACE: Washington, DC, at U.S. Postal Service Headquarters, 475 L’Enfant Plaza, SW. STATUS: Closed. TIME AND DATE: Matters To Be Considered Monday, July 28 at 5 p.m. (Closed) 1. Financial Update. 2. Strategic Issues. 3. Financial Outlook. 4. Product Pricing. 5. Personnel Matters and Compensation Issues. PO 00000 Frm 00067 Fmt 4703 Sfmt 4703 1 15 U.S.C. 78l(k)(2). Securities Exchange Act Release No. 58166 (July 15, 2008) at http://www.sec.gov/rules/other/ 2008/34-58166.pdf 2 See E:\FR\FM\23JYN1.SGM 23JYN1 42838 Federal Register / Vol. 73, No. 142 / Wednesday, July 23, 2008 / Notices following entities are excepted from the requirement of the Order that any person effecting a short sale in the publicly traded securities of substantial financial firms, as identified in Appendix A to the Order (‘‘Appendix A Securities’’),3 using the means or instrumentalities of interstate commerce, must borrow or arrange to borrow the security or otherwise have the security available to borrow in its inventory prior to effecting the short sale: Registered market makers, block positioners, or other market makers obligated to quote in the over-thecounter market, that are selling short as part of bona fide market making and hedging activities related directly to bona fide market making in: (a) Appendix A Securities; (b) derivative securities based on Appendix A Securities, including standardized options; and (c) exchange traded funds of which Appendix A Securities are a component. mstockstill on PROD1PC66 with NOTICES B. Documentation Rule 203(b)(1)(iii) of Regulation SHO requires a broker or dealer to document its compliance with the ‘‘locate’’ requirement contained in Rule 203(b)(1)(i) of the regulation.4 Brokers and dealers have developed processes and procedures to meet this documentation requirement. Because the borrow or arrangement-to-borrow requirement in the Order constitutes the Commission’s ‘‘locate’’ requirement during the effectiveness of the Order, brokers and dealers need not change their processes and procedures used to document compliance. It is therefore ordered that, pursuant to our Section 12(k)(2) powers, brokers and dealers must document compliance with the borrow and arrangement-toborrow requirement of the Order and may use the same processes and procedures to document compliance with the Order as used for compliance with Regulation SHO, provided such processes and procedures would comply with Rule 203(b)(1) of Regulation SHO. 3 Appendix A incorrectly referenced ‘‘HSI’’ as a ticker symbol for HSBC Holdings PLC ADS. This reference to HSI is hereby removed from Appendix A. In addition, the reference to BNP Paribas Securities Corp. is hereby changed to BNP Paribas. See Appendix A attached as revised. 4 Rule 203(b)(1) of Regulation SHO provides: ‘‘A broker or dealer may not accept a short sale order in an equity security from another person, or effect a short sale in an equity security for its own account, unless the broker or dealer has: (1) Borrowed the security, or entered into a bona-fide arrangement to borrow the security; or (2) Reasonable grounds to believe that the security can be borrowed so that it can be delivered on the date delivery is due; and (3) Documented compliance with this paragraph (b)(1).’’ 17 CFR 242.203(b)(1). VerDate Aug<31>2005 18:14 Jul 22, 2008 Jkt 214001 C. Sales of Restricted Securities The Order does not apply to short sales of Appendix A Securities effected pursuant to Rule 144 of the Securities Act of 1933.5 This is consistent with Rule 203(b)(2)(ii) of Regulation SHO and will permit the orderly settlement of such sales without the risk of causing market disruption due to unnecessary purchasing activity to meet the settlement date delivery requirement of the Order. Such sales, however, remain subject to the requirements of Regulation SHO. It is therefore ordered that, pursuant to our Section 12(k)(2) powers, the Order does not apply to any person that effects a short sale pursuant to Rule 144 of the Securities Act of 1933 (17 CFR 230.144) in an Appendix A Security. D. Syndicate Offerings The Order does not apply to short sales by underwriters, or members of a syndicate or group participating in distributions of Appendix A Securities in connection with an over-allotment of securities, or any lay-off sale by such person in connection with a distribution of Appendix A Securities through a rights or a standby underwriting commitment. It is not necessary for the Order to apply to such selling activity because it is addressed in Regulation M under the Securities Exchange Act of 1934,6 an anti-manipulation rule, and does not raise the same concerns as ‘‘naked’’ short selling in secondary markets. It is therefore ordered that, pursuant to our Section 12(k)(2) powers, the Order does not apply with regard to any sale by an underwriter, or any member of a syndicate or group participating in the distribution of an Appendix A Security, in connection with an overallotment of securities, or any lay-off sale by such person in connection with a distribution of Appendix A Securities through a rights or a standby underwriting commitment. In addition, the Order does not apply with respect to a net syndicate short position created in connection with a distribution of an Appendix A Security that is part of a fail to deliver position at a registered clearing agency in Appendix A Securities if action is taken to close out the net syndicate short position no later than the 30th day after commencement of sales in the distribution. The Commission believes that these amendments are necessary in the public interest and for the protection of investors to maintain fair and orderly securities markets, and to prevent PO 00000 5 17 6 17 CFR 230.144. CFR 242.100 et seq. Frm 00068 Fmt 4703 Sfmt 4703 substantial disruption to securities markets. By the Commission. Florence E. Harmon, Acting Secretary. Appendix A Company BNP Paribas ............. Bank of America Corporation. Barclays PLC ............ Citigroup Inc .............. Credit Suisse Group Daiwa Securities Group Inc. Deutsche Bank Group AG. Allianz SE .................. Goldman, Sachs Group Inc. Royal Bank ADS ....... HSBC Holdings PLC ADS. J. P. Morgan Chase & Co. Lehman Brothers Holdings Inc. Merrill Lynch & Co., Inc. Mizuho Financial Group, Inc. Morgan Stanley ......... UBS AG .................... Freddie Mac .............. Fannie Mae ............... Ticker symbol(s) BNPQF or BNPQY. BAC. BCS. C. CS. DSECY. DB. AZ. GS. RBS. HBC. JPM. LEH. MER. MFG. MS. UBS. FRE. FNM. [FR Doc. E8–16863 Filed 7–22–08; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Investment Company Act Release No. 28331; 812–13513] PIMCO Funds, et al.; Notice of Application July 17, 2008. Securities and Exchange Commission (‘‘Commission’’). ACTION: Notice of an application under section 6(c) of the Investment Company Act of 1940 (‘‘Act’’) for an exemption from rule 12d1–2(a) under the Act. AGENCY: Applicants request an order to permit funds of funds relying on rule 12d1–2 under the Act to invest in certain financial instruments. APPLICANTS: PIMCO Funds, PIMCO Variable Insurance Trust (‘‘PVIT’’) (collectively, the ‘‘Trusts’’), Allianz Global Investors Distributors LLC (‘‘AGID’’) and Pacific Investment Management Company LLC (‘‘PIMCO’’). FILING DATES: The application was filed on March 25, 2008, and amended on SUMMARY OF APPLICATION: E:\FR\FM\23JYN1.SGM 23JYN1

Agencies

[Federal Register Volume 73, Number 142 (Wednesday, July 23, 2008)]
[Notices]
[Pages 42837-42838]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-16863]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 58190/July 18, 2008]


Securities Exchange Act of 1934; Amendment to Emergency Order 
Pursuant to Section 12(K)(2) of the Securities Exchange Act of 1934 
Taking Temporary Action To Respond to Market Developments

    Pursuant to Section 12(k)(2) of the Securities Exchange Act of 
1934,\1\ on July 15, 2008, the Securities and Exchange Commission 
(``Commission'') issued an Emergency Order (the ``Order'') related to 
short selling securities of certain specified substantial financial 
firms.\2\ The Order takes effect on July 21, 2008. The Commission 
delayed the effective date to create the opportunity to address, and to 
allow sufficient time for market participants to make, adjustments to 
their operations to implement the enhanced requirements. The 
anticipated operational accommodations necessary for implementation of 
the Order are addressed herein.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78l(k)(2).
    \2\ See Securities Exchange Act Release No. 58166 (July 15, 
2008) at http://www.sec.gov/rules/other/2008/34-58166.pdf
_____________________________________-

A. Bona Fide Market Makers

    The borrow and arrangement-to-borrow requirement of the Order does 
not apply to certain bona fide market makers. (The settlement date 
delivery requirement of the Order applies to these market makers.) The 
purpose of this accommodation is to permit market makers to facilitate 
customer orders in a fast-moving market without possible delays 
associated with complying with the borrow and arrangement-to-borrow 
requirement of the Order.
    It is therefore ordered that, pursuant to our Section 12(k)(2) 
powers, the

[[Page 42838]]

following entities are excepted from the requirement of the Order that 
any person effecting a short sale in the publicly traded securities of 
substantial financial firms, as identified in Appendix A to the Order 
(``Appendix A Securities''),\3\ using the means or instrumentalities of 
interstate commerce, must borrow or arrange to borrow the security or 
otherwise have the security available to borrow in its inventory prior 
to effecting the short sale: Registered market makers, block 
positioners, or other market makers obligated to quote in the over-the-
counter market, that are selling short as part of bona fide market 
making and hedging activities related directly to bona fide market 
making in: (a) Appendix A Securities; (b) derivative securities based 
on Appendix A Securities, including standardized options; and (c) 
exchange traded funds of which Appendix A Securities are a component.
---------------------------------------------------------------------------

    \3\ Appendix A incorrectly referenced ``HSI'' as a ticker symbol 
for HSBC Holdings PLC ADS. This reference to HSI is hereby removed 
from Appendix A. In addition, the reference to BNP Paribas 
Securities Corp. is hereby changed to BNP Paribas. See Appendix A 
attached as revised.
---------------------------------------------------------------------------

B. Documentation

    Rule 203(b)(1)(iii) of Regulation SHO requires a broker or dealer 
to document its compliance with the ``locate'' requirement contained in 
Rule 203(b)(1)(i) of the regulation.\4\ Brokers and dealers have 
developed processes and procedures to meet this documentation 
requirement. Because the borrow or arrangement-to-borrow requirement in 
the Order constitutes the Commission's ``locate'' requirement during 
the effectiveness of the Order, brokers and dealers need not change 
their processes and procedures used to document compliance.
---------------------------------------------------------------------------

    \4\ Rule 203(b)(1) of Regulation SHO provides: ``A broker or 
dealer may not accept a short sale order in an equity security from 
another person, or effect a short sale in an equity security for its 
own account, unless the broker or dealer has: (1) Borrowed the 
security, or entered into a bona-fide arrangement to borrow the 
security; or (2) Reasonable grounds to believe that the security can 
be borrowed so that it can be delivered on the date delivery is due; 
and (3) Documented compliance with this paragraph (b)(1).'' 17 CFR 
242.203(b)(1).
---------------------------------------------------------------------------

    It is therefore ordered that, pursuant to our Section 12(k)(2) 
powers, brokers and dealers must document compliance with the borrow 
and arrangement-to-borrow requirement of the Order and may use the same 
processes and procedures to document compliance with the Order as used 
for compliance with Regulation SHO, provided such processes and 
procedures would comply with Rule 203(b)(1) of Regulation SHO.

C. Sales of Restricted Securities

    The Order does not apply to short sales of Appendix A Securities 
effected pursuant to Rule 144 of the Securities Act of 1933.\5\ This is 
consistent with Rule 203(b)(2)(ii) of Regulation SHO and will permit 
the orderly settlement of such sales without the risk of causing market 
disruption due to unnecessary purchasing activity to meet the 
settlement date delivery requirement of the Order. Such sales, however, 
remain subject to the requirements of Regulation SHO.
---------------------------------------------------------------------------

    \5\ 17 CFR 230.144.
---------------------------------------------------------------------------

    It is therefore ordered that, pursuant to our Section 12(k)(2) 
powers, the Order does not apply to any person that effects a short 
sale pursuant to Rule 144 of the Securities Act of 1933 (17 CFR 
230.144) in an Appendix A Security.

D. Syndicate Offerings

    The Order does not apply to short sales by underwriters, or members 
of a syndicate or group participating in distributions of Appendix A 
Securities in connection with an over-allotment of securities, or any 
lay-off sale by such person in connection with a distribution of 
Appendix A Securities through a rights or a standby underwriting 
commitment. It is not necessary for the Order to apply to such selling 
activity because it is addressed in Regulation M under the Securities 
Exchange Act of 1934,\6\ an anti-manipulation rule, and does not raise 
the same concerns as ``naked'' short selling in secondary markets.
---------------------------------------------------------------------------

    \6\ 17 CFR 242.100 et seq.
---------------------------------------------------------------------------

    It is therefore ordered that, pursuant to our Section 12(k)(2) 
powers, the Order does not apply with regard to any sale by an 
underwriter, or any member of a syndicate or group participating in the 
distribution of an Appendix A Security, in connection with an over-
allotment of securities, or any lay-off sale by such person in 
connection with a distribution of Appendix A Securities through a 
rights or a standby underwriting commitment. In addition, the Order 
does not apply with respect to a net syndicate short position created 
in connection with a distribution of an Appendix A Security that is 
part of a fail to deliver position at a registered clearing agency in 
Appendix A Securities if action is taken to close out the net syndicate 
short position no later than the 30th day after commencement of sales 
in the distribution.
    The Commission believes that these amendments are necessary in the 
public interest and for the protection of investors to maintain fair 
and orderly securities markets, and to prevent substantial disruption 
to securities markets.

    By the Commission.
Florence E. Harmon,
Acting Secretary.

Appendix A

------------------------------------------------------------------------
                  Company                         Ticker symbol(s)
------------------------------------------------------------------------
BNP Paribas...............................   BNPQF or BNPQY.
Bank of America Corporation...............   BAC.
Barclays PLC..............................   BCS.
Citigroup Inc.............................   C.
Credit Suisse Group.......................  CS.
Daiwa Securities Group Inc................   DSECY.
Deutsche Bank Group AG....................   DB.
Allianz SE................................   AZ.
Goldman, Sachs Group Inc..................   GS.
Royal Bank ADS............................   RBS.
HSBC Holdings PLC ADS.....................   HBC.
J. P. Morgan Chase & Co...................   JPM.
Lehman Brothers Holdings Inc..............   LEH.
Merrill Lynch & Co., Inc..................   MER.
Mizuho Financial Group, Inc...............  MFG.
Morgan Stanley............................  MS.
UBS AG....................................   UBS.
Freddie Mac...............................  FRE.
Fannie Mae................................  FNM.
------------------------------------------------------------------------

[FR Doc. E8-16863 Filed 7-22-08; 8:45 am]
BILLING CODE 8010-01-P