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U.S. Securities and Exchange Commission

SEC News Digest

Issue 2008-191
October 1, 2008

COMMISSION ANNOUNCEMENTS

Change in the Meeting: Cancellation of Meeting

The closed meeting scheduled for Monday, September 29, 2008 was cancelled.


Closed Meeting - Wednesday, October 1, 2008 - 2:00 p.m.

The subject matter of the closed meeting held on Wednesday, October 1, 2008, was: matters related to the financial markets.

At times, changes in Commission priorities require alterations in the scheduling of meeting items. For further information and to ascertain what, if any, matters have been added, deleted or postponed, please contact: The Office of the Secretary at (202) 551-5400.


ENFORCEMENT PROCEEDINGS

In the Matter of Stephanie S. Ruskey (CPA)

On September 29, the Commission issued an Order Instituting Administrative Proceedings Pursuant to Rule 102(e) of the Commission's Rules of Practice, Making Findings, and Imposing Remedial Sanctions (Order) against Stephanie S. Ruskey. The Order finds that, on September 17, 2008, the United States District Court for the Western District of Missouri entered a final judgment that permanently enjoins Ruskey from violating certain provisions of the federal securities laws and imposes a $25,000 civil money penalty.

According to the Order, the Commission's complaint against Ruskey, former controller of American Italian Pasta Company (AIPC), alleged that Ruskey and others caused AIPC to file materially false and misleading financial statements in the company's annual reports on Forms 10-K and quarterly reports on Forms 10-Q for fiscal years 2002, 2003, and 2004 and that Ruskey knew or should have known of numerous inappropriate AIPC accounting practices that departed from generally accepted accounting principles.

Based on the above, the Order suspends Ruskey from appearing or practicing before the Commission as an accountant with the right to apply for reinstatement after three years. Ruskey consented to the issuance of the Order without admitting or denying any of the findings in the Order, except she admitted the entry of the injunction.

For further information see Litigation Release No. 20715 and Accounting and Auditing Rel. No. 2877 (September 15, 2008) [SEC v. American Italian Pasta Company, Civil Action No. 4:08-cv-00675 (W.D. Mo.); SEC v. Timothy S. Webster, Civil Action No. 4:08-cv-00674 (W.D. Mo.); SEC v. Warren B. Schmidgall and David E. Watson, Civil Action No. 4:08-cv-00677 (W.D. Mo.); SEC v. Stephanie S. Ruskey, Civil Action No. 4:08-cv-00676 (W.D. Mo.)]. (Rel. 34-58667; AAE Rel. 2890; File No. 3-13245)


In the Matter of Timothy S. Webster (CPA)

On September 29, the Commission issued an Order Instituting Administrative Proceedings Pursuant to Rule 102(e) of the Commission's Rules of Practice, Making Findings, and Imposing Remedial Sanctions (Order) against Timothy S. Webster. The Order finds that, on September 23, 2008, the United States District Court for the Western District of Missouri entered a final judgment that (1) permanently enjoins Webster from violating certain provisions of the federal securities laws, (2) requires Webster to pay $784,588 in disgorgement and prejudgment interest and a $250,000 civil money penalty, and (3) bars Webster from acting as an officer or director of any public issuer.

According to the Order, the Commission's complaint alleged, among other things, that Webster, former president and chief executive officer of American Italian Pasta Company (AIPC), engaged in a fraudulent scheme that hid from the investing public the true financial state of the company by filing materially false and misleading statements in the company's annual reports on Forms 10-K, quarterly reports on Forms 10-Q, and current reports on Forms 8-K, for AIPC's fiscal years 2002, 2003, and 2004. The complaint alleged that to meet aggressive external targets, Webster and others engaged in numerous accounting practices that departed from generally accepted accounting principles, including, among other things, capitalizing improperly millions of dollars of normal operating costs; understating improperly millions of dollars of trade promotion expenses; overstating improperly by millions of dollars the company's spare parts inventory; recognizing improperly millions of dollars of current period revenue on sales of products that were not shipped until after the end of the current periods; structuring round-trip cash transactions; and eliminating improperly the company's vacation and paid time off liability.

Based on the above, the Order suspends Webster from appearing or practicing before the Commission as an accountant. Webster consented to the issuance of the Order without admitting or denying any of the findings in the Order, except he admitted the entry of the injunction.

For further information see Litigation Release No. 20715 and Accounting and Auditing Rel. No. 2877 (September 15, 2008) [SEC v. American Italian Pasta Company, Civil Action No. 4:08-cv-00675 (W.D. Mo.); SEC v. Timothy S. Webster, Civil Action No. 4:08-cv-00674 (W.D. Mo.); SEC v. Warren B. Schmidgall and David E. Watson, Civil Action No. 4:08-cv-00677 (W.D. Mo.); SEC v. Stephanie S. Ruskey, Civil Action No. 4:08-cv-00676 (W.D. Mo.)]. (Rel. 34-58693; AAE Rel. 2893; File No. 3-13269)


In the Matter of Daniel N. Jones

On September 30, the Commission issued an Order Instituting Administrative Proceedings Pursuant to Section 203(f) of the Investment Advisers Act of 1940 (Advisers Act), Making Findings, and Imposing Remedial Sanctions (the Order) against Daniel N. Jones (Jones). The Order is based on Jones' criminal conviction and a permanent injunction against Jones in a related civil action in the U.S. District Court for the Western District of Michigan, captioned SEC v. Daniel Jones and Azure Bay Management LLC, No. 07-1198.

The Order finds that on November 29, 2007, the Commission filed a Complaint charging Jones and Azure Bay with violations of Section 17(a) of the Securities Act of 1933 (the Securities Act) and Sections 206(1) and 206(2) of the Advisers Act. The Complaint was subsequently amended to include violations of Section 10(b) of the Securities and Exchange Act of 1934 (the Exchange Act) and Rule 10b-5 thereunder and Section 206(4) of the Advisers Act.

The Commission's pleadings alleged, among other things, that Jones and Azure Bay defrauded their private hedge fund client, The Addington Fund LP (Addington). Addington incurred substantial losses in 2005. The pleadings further alleged that, rather than disclosing these losses, Jones prepared and disseminated false statements and performance reports for Addington's investors and hid the true performance of the Fund. Finally, the pleadings alleged that despite these losses and Addington's poor performance, Jones and Azure Bay took excessive fees from Addington based on fabricated returns. On September 18, 2008, the Court entered a final judgment that, among other things, permanently enjoins Jones and Azure Bay from violating Section 17(a) of the Securities Act, Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, and Sections 206(1), 206(2), and 206(4) of the Advisers Act and Rule 206(4)-8 thereunder.

A parallel criminal proceeding was brought against Jones on March 18, 2008. On April 1, 2008, Jones pleaded guilty to one count of wire fraud in violation of Title 18 United States Code, Sections 1343 before the United States District Court for the Western District of Michigan, in United States v. Daniel N. Jones, No. 1:08-CR-74. Jones was sentenced on August 11, 2008 and received 21 months in prison.

Based on the above, the Order bars Jones from association with any investment adviser. Jones consented to the issuance of the Order without admitting or denying any of the findings in the Order. (Rel. IA-2795; File No. 3-13270)


In the Matter of Argyle Ventures, Inc.

An Administrative Law Judge has issued an Order Making Findings and Revoking Registrations by Default (Default Order) in Argyle Ventures, Inc., Administrative Proceeding No. 3-13176. The Order Instituting Proceedings alleged that Argyle Ventures, Inc., California Investment Co., Inc., Goldcrest Corp., Molecular Robotics, Inc., Ponderosa Partners, Inc., and Taking Life By Storm, Inc., each failed repeatedly to file required annual and quarterly reports while their securities were registered with the Securities and Exchange Commission.

The Default Order finds these allegations to be true and revokes the registrations of each class of registered securities of all six Respondents pursuant to Section 12(j) of the Securities Exchange Act of 1934. (Rel. 34-58697; File No. 3-13176)


Delinquent Filers' Stock Registrations Revoked

The registrations of the stock of B.B. Walker Co., Beres Industries, Inc., Best Products Co., Inc., Bethlehem Corp., and Bogue Electric Manufacturing Co. (n/k/a Bogue International, Inc.) have been revoked. Each had repeatedly failed to file required annual and quarterly reports with the Securities and Exchange Commission. Thus, each violated a crucial provision of the federal securities laws that requires public corporations to publicly disclose current, accurate financial information so that investors may make informed decisions. The revocations were ordered in an administrative proceeding before an administrative law judge. (Rel. 34-58698; File No. 3-13193)


SEC Charges Businessman And Company With Fraud in Issuance of False and Misleading Press Releases

The Commission announced that today it filed a complaint in the Southern District of New York charging Rodedawg International Industries, Inc. (Rodedawg Int'l) and its Chairman and CEO, Luis E. Pallais (Pallais) with issuing numerous press releases containing false and misleading information about the company's business and its future prospects.

The complaint named the following defendants:

  • Rodedawg Int'l is a Nevada company with an office in Hayward, California. The securities of Rodedawg Int'l previously traded on the pink sheets under the ticker symbol "RWGI." The Commission suspended trading in Rodedawg's securities on March 8, 2007.
  • Pallais, age 48, is a resident of Hayward, California. Pallais has been Rodedawg Int'l's Chairman and CEO since its formation, and is responsible for operating and managing Rodedawg Int'l's business. Among other things, Pallais drafts and issues Rodedawg Int'l's press releases.

The complaint alleges the following. Rodedawg Int'l claims to be in the business of importing and selling various types of vehicles from China, including the Rodedawg, an amphibious vehicle that is being marketed as a hybrid between a sports utility vehicle and a boat. From late 2005 through early 2007, Rodedawg Int'l issued nearly thirty press releases touting the success of its ongoing business, when, in fact, it had no revenue or earnings. Some of these releases contained materially false information or omitted to disclose material information. For example, Rodedawg Int'l issued several press releases touting distribution agreements with foreign companies that supposedly required the distributors to order a minimum number of Rodedawg units. In fact, under the terms of these agreements, the distributors were not required to order a single vehicle.

The Commission complaint alleges that the defendants violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The Commission is seeking permanent injunctions against Rodedawg Int'l and Pallais, and disgorgement with pre-judgment interest thereon, civil penalties, an officer and director bar and a penny stock bar against Pallais.(LR-20762)


SEC v. International Fiduciary Corp., S.A., et al.

The Commission announced today that the Honorable Gerald Bruce Lee, United States District Judge for the Eastern District of Virginia, has entered Final Judgments as to Relief Defendants Terry Martin (and associated entities CD2E, Inc., M&M Technologies, Inc., and Winchell Corporation) and Robert Lowrey (and associated entity SZE Coast Operating Corporation), ordering them to disgorge, along with prejudgment interest, funds they hold or control that represent the fruits of violations by others as alleged in the Commission's First Amended Complaint. The relief defendants were not charged with violations of the federal securities laws. The judgment against Martin was entered on Sept. 17, 2008 and the judgment against Lowrey was entered on Aug. 13, 2008. The entry of these judgments closes the litigation involving the Commission's December 2006 emergency action against International Fiduciary Corporation, S.A. (IFC) and its principals, in which the Commission alleged that the defendants raised at least $40 million from at least 140 investors in a ponzi scheme.

The Commission wishes to acknowledge the continuing assistance of the British Columbia Securities Commission. For further information, see Litigation Release Nos. 19934 (Dec. 5, 2006); 19976 (Jan. 23, 2007); 20087 (April 24, 2007), 20158 (June 20, 2007); and 20208 (July 25, 2007). [SEC v. International Fiduciary Corp., S.A., et al., U.S. District Court for Eastern District of Virginia (Civil Action No. 1:06CV1354)] (LR-20763)


SEC Charges Registered Broker-Dealer, Three Individuals, and Related Entities With Violating Broker-Dealer Registration and Reporting Requirements

On September 30, the Commission filed a civil injunctive action charging Vision Securities, Inc., Daniel James Gallagher, Vision's de facto chief executive officer, Christopher Castaldo, Frank J. Zangara, and two entities controlled by Castaldo or Zangara with violations of the broker-dealer registration and reporting requirements. The Commission's complaint alleges that, from approximately May 2005 through February 2007, Castaldo solicited investors, and received transaction-based compensation, in connection with three offerings of securities, including one offering conducted under the auspices of Vision, and that Zangara solicited investors and received transaction-based compensation in connection with one of these offerings. According to the Complaint, this conduct was illegal because Castaldo and Zangara were not registered as brokers, and Castaldo was not a registered representative of Vision. Moreover, Zangara's brokerage activities violated the terms of a Commission order previously entered against him. In addition, the Complaint alleges that Vision filed numerous inaccurate Form BD amendments, in which it failed to disclose Gallagher's control of the firm.

The complaint names the following defendants:

  • Castaldo, age 37, a resident of Glen Head, New York and the president and CEO of Corporate Communications Corp. Castaldo is also a former registered representative of Stratton Oakmont Inc. and Tasin & Company, Inc., and has been the subject of disciplinary action by several state securities regulators.
  • Corporate Communications Corp., an unregistered entity with its office in Glenwood Landing, New York. Corporate Communications is wholly owned by Castaldo and publishes Stock Traders Press, an on-line subscription-based newsletter featuring Castaldo's stock picks and market analysis.
  • Gallagher, age 43, a resident of Roslyn, New York, and an owner and the de facto president of Vision and a significant shareholder of GCG Holdings, Inc., the direct owner of Vision, and the president of GCG until at least June 2006. In 1999, Gallagher was censured and suspended from association with any NASD member, in any capacity, for six months, based on alleged fraudulent conduct while at Stratton Oakmont. As a result of his disciplinary history and complaints against him, Gallagher's trading activities have been restricted and he is subject to heightened supervisory procedures, pursuant to agreements with the NASD and several states, including New York, New Jersey, Pennsylvania, Maryland, Florida and Connecticut.
  • Vision Securities, a registered broker-dealer with its principal place of business in Melville, New York. Vision is controlled by defendant Gallagher. As a result of the firm's failure to maintain the required net capital, since February 2008, the firm has been under an order of the Financial Industry Regulatory Authority order pursuant to which the firm can only take unsolicited orders.
  • Zangara, age 46, a resident of Locust Valley, New York. Zangara has an extensive disciplinary history including a 2004 Commission bar from association with a broker or dealer, with a right to reapply after five years. See Frank Zangara, Exchange Act Release No. 49805 (June 3, 2004).
  • B.H.I. Group, Inc. (BHI), a New York corporation with its principal place of business in Nassau County, New York, that is allegedly owned and controlled by defendant Zangara and his wife.

The Complaint alleges that in about May 2005, Castaldo and Zangara, a former colleague of Castaldo's from Tasin, began soliciting Stock Traders Press subscribers and others for an offering of securities in an on-line comparison-shopping business. Corporate Communications received commissions on the amount Castaldo raised, and BHI received commissions on the amount that Zangara raised. The complaint further alleges that in about September 2005, Castaldo's former colleague at the Stratton Oakmont firm, Gallagher, enlisted Castaldo to assist Gallagher's firm, Vision, in soliciting investors for another offering, even though Gallagher knew that Castaldo and Corporate Communications were not registered and lacked the requisite licenses. Vision ultimately paid Corporate Communications approximately seventy percent of the commissions it received on the money Castaldo raised for that offering. In addition, Vision Securities, with the knowledge and substantial assistance of Gallagher, filed numerous Form BD amendments with the Commission, in which it failed to disclose Gallagher's true relationship to, and control of, Vision. The complaint also alleges that from October 2006 to February 2007, independent of Vision and Zangara, Castaldo solicited investors for a third offering, for which Corporate Communications also received commissions.

As a result of this conduct, the Complaint alleges that defendants BHI, Corporate Communications, Castaldo and Zangara violated Section 15(a) of the Securities and Exchange Act of 1934 (Exchange Act), Zangara violated Section 15(b)(6)(B)(i) of the Exchange Act, Vision Securities violated Sections 15(b)(7) and 17(a) of the Exchange Act, Gallagher and Castaldo are liable pursuant to Section 20(e) of the Exchange Act as aiders and abettors of Vision Securities' violations of Section 15(b)(7) of the Exchange Act and Rule 15b3-1, and Gallagher is liable pursuant to Section 20(e) of the Exchange Act as an aider and abettor of Vision Securities' violations of Section 17(a) of the Exchange Act and Rule 15b7-1. In its Complaint, the Commission seeks permanent injunctions, disgorgement and prejudgment interest and civil penalties against all defendants. [SEC v. Christopher Castaldo, Daniel James Gallagher, Frank J. Zangara, B.H.I. Group, Inc., Corporate Communications Corp., and Vision Securities Inc., 08 Civ. 8397 (JSR) (S.D.N.Y.) (September 30, 2008)] (LR-20764)


INVESTMENT COMPANY ACT RELEASES

Notices of Deregistration under the Investment Company Act

For the month of September, 2008, a notice has been issued giving interested persons until October 21, 2008, to request a hearing on any of the following applications for an order under Section 8(f) of the Investment Company Act of 1940 declaring that the applicant has ceased to be an investment company:

  • AIM Special Opportunities Funds [File No. 811-8697]
  • Legg Mason Partners Appreciation Fund, Inc. [File No. 811-1940]
  • Legg Mason Partners Capital Fund, Inc. [File No. 811-2667]
  • Legg Mason Partners Aggressive Growth Fund, Inc. [File No. 811-3762]
  • CitiFunds Trust I [File No. 811-4006]
  • Legg Mason Partners California Municipals Fund, Inc. [File No. 811-3970]
  • Legg Mason Partners Adjustable Rate Income Fund [File No. 811-6663]
  • Credit Suisse Short Duration Bond Fund [File No. 811-21032]
  • Dreyfus Florida Intermediate Municipal Bond Fund [File No. 811-6489]
  • Dreyfus Florida Municipal Money Market Fund [File No. 811-7091]
  • Dreyfus Insured Municipal Bond Fund, Inc. [File No. 811-4237]
  • Dreyfus Massachusetts Intermediate Municipal Bond Fund [File No. 811-6644]
  • Dreyfus New Jersey Intermediate Municipal Bond Fund [File No. 811-6643]
  • Dreyfus New York Tax Exempt Intermediate Bond Fund [File No. 811-5161]
  • Dreyfus Pennsylvania Intermediate Municipal Bond Fund [File No. 811-7089]
  • Dreyfus Premier GNMA Fund [File No. 811-4880]
  • Black Pearl Funds [File No. 811-21785]
  • XTF Investors Trust [File No. 811-22002]

(Rel. IC-28408 - September 26)


Dodge & Cox Funds and Dodge & Cox Incorporated

A notice has been issued giving interested persons until October 24, 2008, to request a hearing on an application filed by Dodge & Cox Funds and Dodge & Cox Incorporated for an order under Section 6(c) of the Investment Company Act for an exemption from Sections 18(f) and 21(b) of the Act, under Section 12(d)(1)(J) of the Act for an exemption from Section 12(d)(1) of the Act, under Sections 6(c) and 17(b) of the Act for an exemption from Sections 17(a)(1) and 17(a)(2) of the Act, and under Section 17(d) of the Act and Rule 17d-1 under the Act to permit certain joint transactions. The order would permit certain registered open-end management investment companies to participate in a joint lending and borrowing facility. (Rel. IC-28409 - September 29)


Phoenix Equity Trust, et al.

An order has been issued on an application filed by Phoenix Equity Trust, et al, for an exemption from Section 15(a) of the Investment Company Act of and Rule 18f-2 under the Act. The order permits the applicants to enter into and materially amend subadvisory agreements without shareholder approval. (Rel. IC-28410 - September 29)


Invesco Powershares Capital Management LLC, et al.

A notice has been issued giving interested persons until Oct. 24, 2008, to request a hearing on an application filed by Invesco PowerShares Capital Management LLC, et al. for an order to amend a prior order that permits (a) open-end management investment companies whose portfolio securities include equity and/or fixed-income securities of U.S. issuers to issue shares (Shares) redeemable in large aggregations only (Creation Units); (b) secondary market transactions in Shares to occur at negotiated market prices; (c) certain affiliated persons of the series to deposit securities into, and receive securities from, the series in connection with the purchase and redemption of Creation Units; and (d) certain registered management investment companies and unit investment trusts outside of the same group of investment companies as the series to acquire Shares. The amended order would permit the open-end management investment companies to offer series investing in foreign equity and fixed-income securities. (Rel. IC-28411 - September 29)


Pimco Municipal Income Fund, et al.

An order has been issued under Section 6(c) of the Investment Company Act of granting an exemption from Section 19(b) of the Act and Rule 19b-1 under the Act on an application filed by PIMCO Municipal Income Fund, et al. The order permits certain registered closed-end management investment companies to make a greater number of capital gains distributions to holders of shares of their auction market preferred stock than is permitted by Section 19(b) of the Act and Rule 19b-1 under the Act to the extent necessary to comply with Internal Revenue Ruling 89-81 under the Internal Revenue Code of 1986. (Rel. IC-28412 - September 29)


Wisdomtree Asset Management, Inc. and Wisdomtree Trust

A notice has been issued giving interested persons until Oct. 21, 2008, to request a hearing on an application filed by WisdomTree Asset Management, Inc. and WisdomTree Trust for an order to permit (a) series of certain open-end management investment companies that utilize active management strategies to issue shares (Shares) redeemable in large aggregations only (Creation Units); (b) secondary market transactions in Shares to occur at negotiated market prices; (c) certain affiliated persons of the series to deposit securities into, and receive securities from, the series in connection with the purchase and redemption of Creation Units; and (d) certain registered management investment companies and unit investment trusts outside of the same group of investment companies as the series to acquire Shares. (Rel. IC-28419 - September 29)


Forward Funds and Forward Management, LLC

A notice has been issued giving interested persons until Oct. 24, 2008, to request a hearing on an application filed by Forward Funds and Forward Management, LLC for an order granting an exemption from Section 15(a) of the Investment Company Act and Rule 18f-2 under the Act. The order would permit certain registered open-end management investment companies to enter into and materially amend subadvisory agreements without shareholder approval. (Rel. IC-28420 - September 29)


First Trust Advisors L.P., et al.

A notice has been issued giving interested persons until Oct. 24, 2008, to request a hearing on an application filed by First Trust Advisors, L.P., et al. for an order to permit (a) series of certain open end management investment companies to issue shares redeemable in large aggregations only; (b) secondary market transactions in shares of the series to occur at negotiated market prices; (c) certain series to pay redemption proceeds, under certain circumstances, more than seven days after the tender of shares for redemption and; and (d) certain affiliated persons of the series to deposit securities into, and receive securities from, the series in connection with the purchase and redemption of large aggregations of shares. (Rel. IC-28421 - September 29)


Fidelity Aberdeen Street Trust, et al.

An order has been issued on an application filed by Fidelity Aberdeen Street Trust, et al., under Section 6(c) of the Investment Company Act for an exemption from Rule 12d1-2(a) under the Act. The order permits registered open-end management investment companies relying on Rule 12d1-2 under the Act to invest in certain financial instruments. (Rel. IC-28425 - September 30)


H&Q Healthcare Investors, et al.

A notice has been issued giving interested persons until October 27, 2008 to request a hearing on an application filed by H&Q Healthcare Investors, et al., for an order under Rule 17d-1 under the Act. The order would permit certain registered management investment companies to coinvest in private placement securities with certain unregistered funds. (Rel. IC-28426 - September 30)


MCG Capital Corporation, et al.

A notice has been issued giving interested persons until October 27, 2008 to request a hearing on an application filed by MCG Capital Corporation, et al. (MCG) for an order under Section 6(c) of the Investment Company Act for an exemption from Sections 18(a), 55(a), and 61(a) of the Act. The order would (1) permit MCG to look to the assets of its wholly-owned subsidiaries, rather than MCG's interest in the subsidiaries themselves, in determining whether MCG meets certain requirements under the Act, and (2) permit MCG to adhere to a modified asset coverage requirement. (Rel. IC-28427 - September 29)


SELF-REGULATORY ORGANIZATIONS

Immediate Effectiveness of Proposed Rule Changes

A proposed rule change (SR-ISE-2008-72) filed by the International Securities Exchange relating to foreign currency options closing settlement value has become effective under Section 19(b)(3)(A) of the Securities Exchange Act of 1934. Publication is expected in the Federal Register during the week of September 29. (Rel. 34-58645)

A proposed rule change filed by NASDAQ OMX PHLX (SR-Phlx-2008-64) to adopt a trading halt rule in connection with the dissemination of net asset value and disclosed portfolio for certain derivative securities products has become effective under Section 19(b)(3)(A) of the Securities Exchange Act of 1934. Publication is expected in the Federal Register during the week of September 29. (Rel. 34-58658)

A proposed rule change filed by the International Securities Exchange (SR-ISE-2008-71) relating to fee changes has become immediately effective under Section 19(b)(3)(A) of the Securities Exchange Act of 1934. Publication of the proposal is expected to be made in the Federal Register during the week of September 29. (Rel. 34-58671)

A proposed rule change (SR-ISE-2008-69) filed by the International Securities Exchange relating to amending the Fee Schedule has become effective under Section 19(b)(3)(A) of the Securities Exchange Act of 1934. Publication is expected in the Federal Register during the week of September 29. (Rel. 34-58676)

A proposed rule change filed by the NASDAQ Stock Market relating to the trading the two-character ticker symbol "TO" (SR-NASDAQ-2008-075) has become effective under Section 19(b)(3)(A) of the Securities Exchange Act of 1934. Publication is expected in the Federal Register during the week of September 29. (Rel. 34-58684)

A proposed rule change (SR-ISE-2008-73) filed by the International Securities Exchange to extend its hours of trading for equity securities has become effective under Section 19(b)(3)(A) of the Securities Exchange Act of 1934. Publication is expected in the Federal Register during the week of September 29. (Rel. 34-58685)

A proposed rule change filed by the NASDAQ OMX PHLX (SR-Phlx-2008-69) relating to the Phlx XL Risk Monitor Mechanism has become effective under Section 19(b)(3)(A) of the Securities Exchange Act of 1934. Publication is expected in the Federal Register during the week of September 29. (Rel. 34-58691)


Proposed Rule Changes

The Financial Industry Regulatory Authority filed a proposed rule change (SR-FINRA-2008-044) to amend NASD Rules 2210 (Communications with the Public) and 2211 (Institutional Sales Material and Correspondence) and incorporated NYSE Rule 472 (Communications with the Public) to address the supervision of market letters. Among other things, the proposed rule change would amend the definition of "sales literature" in NASD Rule 2210 to exclude market letters that qualify as "correspondence" and would define "correspondence" in NASD Rule 2211 to include market letters distributed by a member to one or more of its existing retail customers and fewer than 25 prospective retail customers within any 30 calendar-day period. Publication of the proposal is expected to be made in the Federal Register during the week of September 29. (Rel. 34-58648)

A proposed rule change (SR-FINRA-2008-047) has been filed by the Financial Industry Regulatory Authority (f/k/a National Association of Securities Dealers, Inc.) relating to amendments to the Codes of Arbitration Procedure to raise the amount in controversy heard by a single chair-qualified arbitrator to $100,000. Publication of the proposal is expected to be made in the Federal Register during the week of September 29. (Rel. 34-58651)

The NASDAQ Stock Market has filed a proposed rule change (SR-NASDAQ-2008-018) pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 to remove from Rule 7019 the fees for receiving index values. Publication is expected in the Federal Register during the week of September 29. (Rel. 34-58666)


Approval of Proposed Rule Changes

The Commission published notice of filing of Amendment No. 4 and granted accelerated approval to a proposed rule change (SR-Amex-2008-62), as modified by Amendment Nos. 1 and 4 thereto, filed by the American Stock Exchange and granted approval to a proposed rule change (SR-NYSE-2008-60), as modified by Amendment No. 1 thereto, filed by the New York Stock Exchange, pursuant to Rule 19b-4 under the Securities Exchange Act of 1934 relating to the acquisition of the Amex by NYSE Euronext. Publication is expected in the Federal Register during the week of September 29. (Rel. 34-58673)

The Commission approved a proposed rule change (SR-Amex-2008-64) submitted by the American Stock Exchange pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 to adopt new rule 478T to set forth the temporary procedures that will apply to disciplinary proceedings pending as of the closing date of the acquisition of Amex by NYSE Euronext. Publication is expected in the Federal Register during the week of September 29. (Rel. 34-58678)

The Commission granted accelerated approval to a proposed rule change (SR-NYSE-2008-76), as modified by Amendment No. 1 thereto, submitted by the New York Stock Exchange to establish procedures designed to manage potential informational advantages resulting from the affiliation between the exchange and Archipelago Securities L.L.C. Publication is expected in the Federal Register during the week of September 29. (Rel. 34-58680)

The Commission granted accelerated approval to a proposed rule change (SR-NYSEArca-2008-90), as modified by Amendment No. 1 thereto, submitted by NYSE Arca amending NYSE Arca Equities Rule 7.31(x) to change the permissible order entry time and eligibility of its Primary Only Order and amending NYSE Arca Equities Rule 14.3 to establish procedures designed to manage potential informational advantages resulting from the affiliation between the exchange and Archipelago Securities L.L.C. Publication is expected in the Federal Register during the week of September 29. (Rel. 34-58681)


SECURITIES ACT REGISTRATIONS


RECENT 8K FILINGS

 

http://www.sec.gov/news/digest/2008/dig100108.htm


Modified: 10/01/2008