Tuesday, February 09, 2010Last Update: 9:55 PM PT

     WASHINGTON (CN) - The American pika, a small chinchilla-like animal, is not threatened or endangered says the U.S. Fish and Wildlife Service after completing a 12-month review of the pika's status under the Endangered Species Act.
     The agency's action followed a petition submitted by the Center for Biological Diversity to conduct a status review of each of the 36 subspecies of American pika, which the petition stated are threatened by habitat destruction and the effects of global warming.
     While it did not find enough evidence to warrant listing of the pika as threatened or endangered at this time, the agency is encouraging the public to comment on the status of the pika.

     WASHINGTON (CN) - The Securities and Exchange Commission plans to amend its rule that provides a safe harbor against claims of price manipulation to companies repurchasing their own common stock. The changes to Rule 10b-18 are meant to recognize technological advancements made since the rule was adopted in 1982.
           The commission proposes to eliminate the general exclusion rule under which any purchase of its own common stock by an issuer falls out of the safe harbor if the purchase violates any one of four manner, timing, price, and volume conditions specified in the rule. The speed of electronic markets have made it possible for a purchase order to be entered into the system that is within the safe harbor provisions to fall out by the time the order is actually executed. Under the proposed changes, the commission would look at the conditions just before the trade was executed, and as it was executed, to determine the propriety of the trade.
           The commission states that its most important concern is the effect of automatic volume weighted average price systems (VWAP), which buy and sell a particular stock based on the price of each transaction multiplied by the number of shares traded in each transaction divided by the total number of shares traded in a day. The buy and sell price are programmed into the trading system without respect to the quoted price of a stock at the time of execution and may violate the price and volume constraints of Rule 10b-18. The commission requests input from the public on VWAPs and application of the rule to VWAP trades.
           The rule currently forbids an issuer from entering the opening bid for its common stock in the principal market in which it is traded. The rule does not account for pre-and post-market electronic auctions, or secondary trading on other exchanges. The commission proposes to extend the opening bid exclusion to all pre-, post, and secondary markets.
           The price restriction under the rule requires an issuer to buy its stock at a price that is no higher than the highest independent bid or last independent transaction price, whichever is higher. This effectively precludes VWAP transactions, which ignore the chronology of price in their calculations. The commission's proposal would allow VWAP transactions if the automated "buy" price is set before the regular trading session begins and the price is based on a full day of trading volume. In addition, only stock qualifying under Regulation M-which sets certain minimum market capitalizations, trade volumes and float value of actively traded stocks-could be traded by a VWAP system and retain protection under the safe harbor.
           All public comments on the proposed Rule 10b-18 changes must be received by March 1.

     WASHINGTON (CN) - The Environmental Protection Agency will require importers and manufacturers of fifteen common chemical substances to provide 90-day notification to the agency before making the substances or bringing them into the country.
     Under the Toxic Substances Act the EPA may determine when a significant new use of a substance occurs and may issue new regulations specific to the new use, including the pre-import, pre-manufacture requirements.
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     WASHINGTON (CN) - The Commodity Credit Corporation plans to implement the new Biomass Crop Assistance Program authorized by the 2008 Farm Bill.
     The program is to assist agricultural and forest land owners and operators with the establishment and production of eligible crops including woody biomass in selected project areas for conversion to bioenergy, and the collection, harvest, storage, and transportation of eligible material for use in a biomass conversion facility. This rule specifies the requirements for eligible participants, biomass conversion facilities, and biomass crops and materials. It also provides notice of final termination of the existing Notice of Funds Availability.
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     WASHINGTON (CN) - To help keep hospitals open, the Department of Housing and Urban Development is allowing debt refinancing without the need to perform construction or renovation, an existing requirement of the Hospital Mortgage Insurance Program.
     The HUD is revising regulations under the Federal Housing Administration's Section 242 Hospital Mortgage Insurance Program to conform to a practice of allowing the loans that the HUD began in July and revised in January. The rule is for hospitals without FHA-insured loans. Hospitals currently insured under the FHA's Section 242 program may refinance under the National Housing Act.
     The agency changed the rule because the downturn in the economy has reduced the availability of private financing for hospital facility, equipment, and technology needs, and for hospitals to meet obligations on existing debt.
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