[Federal Register Volume 84, Number 110 (Friday, June 7, 2019)]
[Notices]
[Pages 26731-26732]
[FR Doc No: 2019-11969]

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DEPARTMENT OF TRANSPORTATION

Pipeline and Hazardous Materials Safety Administration

Hazardous Materials: Notice of Applications for Modifications to
Special Permits

AGENCY: Pipeline and Hazardous Materials Safety Administration (PHMSA),
DOT.

ACTION: List of applications for modification of special permits.

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SUMMARY: In accordance with the procedures governing the application
for, and the processing of, special permits from the Department of
Transportation's Hazardous Material Regulations, notice is hereby given
that the Office of Hazardous Materials Safety has received the
application described herein. Each mode of transportation for which a
particular special permit is requested is indicated by a number in the
``Nature of Application'' portion of the table below as follows: 1--
Motor vehicle, 2--Rail freight, 3--Cargo vessel, 4--Cargo aircraft
only, 5--Passenger-carrying aircraft.

DATES: Comments must be received on or before June 24, 2019.

ADDRESSES: Record Center, Pipeline and Hazardous Materials Safety
Administration, U.S. Department of Transportation, Washington, DC
20590.
    Comments should refer to the application number and be submitted in
triplicate. If confirmation of receipt of comments is desired, include
a self-addressed stamped postcard showing the special permit number.

FOR FURTHER INFORMATION CONTACT: Ryan Paquet, Director, Office of
Hazardous Materials Approvals and Permits Division, Pipeline and
Hazardous Materials Safety Administration, U.S. Department of
Transportation, East Building, PHH-30, 1200 New Jersey Avenue
Southeast, Washington, DC 20590-0001,<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: Copies of the applications are available for
inspection in the Records Center, East Building, PHH-30, 1200 New
Jersey Avenue Southeast, Washington, DC or at http://regulations.gov.
    This notice of receipt of applications for special permit is
published in accordance with part 107 of the Federal hazardous
materials transportation law (49 U.S.C. 5117(b); 49 CFR 1.53(b)).

    Issued in Washington, DC, on June 3, 2019.
Donald P. Burger,
Chief, General Approvals and Permits Branch.

                                              Special Permits Data
----------------------------------------------------------------------------------------------------------------
                                                                                Nature of the special permits
       Application No.                 Applicant          Regulation(s) affected              thereof
----------------------------------------------------------------------------------------------------------------
7657-M.......................  WELKER, INC.............  173.201, 173.202,         To modify the special permit
                                                          173.203, 173.301(f)(2),   to add additional hazmat.
                                                          173.302a(a)(1),           (modes 1, 2, 3, 4)
                                                          173.304(a),
                                                          177.840(a)(1).
10501-M......................  SEMI-BULK SYSTEMS, INC..  180.352(d)..............  To modify the special permit
                                                                                to authorize the repair of
                                                                                UN13L2 flexible IBCs with a
                                                                                larger capacity and
                                                                                different cross-sectional
                                                                                shape. (modes 1, 2, 3)
11110-M......................  UNITED PARCEL SERVICE CO  171.8, 175.75...........  To modify the special permit
                                                                                to add additional air
                                                                                carriers. (mode 4)
11859-M......................  CARLETON TECHNOLOGIES,    173.301(f), 173.302a(a),  To modify the special permit
                                INC.                      178.65.                   to update the tube welding
                                                                                test procedure to the most
                                                                                current production drawings.
                                                                                (modes 1, 2, 4)
12516-M......................  POLY-COAT SYSTEMS, INC..  107.503(b), 107.503(c),   To modify the special permit
                                                          173.241, 173.242.         to remove the request to get
                                                                                authorization from the
                                                                                Approvals and Permits
                                                                                Division before modifying,
                                                                                stretching or re-barreling.
                                                                                (mode 1)
14526-M......................  KIDDE TECHNOLOGIES INC..  173.302, 173.302a.......  To modify the special permit
                                                                                to add additional safety
                                                                                control measures. (modes 1,
                                                                                2, 3, 4)
14576-M......................  STRUCTURAL COMPOSITES     172.101(j),               To modify the special permit
                                INDUSTRIES LLC.           173.302a(a)(1).           to reduce the burst pressure
                                                                                from 3.4 times service
                                                                                pressure to 3.0 times the
                                                                                service pressure. (modes 1,
                                                                                3, 4)
15279-M......................  UNIVERSITY OF COLORADO    172.301(a), 172.301(b),   To modify the special permit
                                AT BOULDER, EHS.          172.301(c), 173.196(a),   to authorize a new
                                                          173.196(b), 178.609.      destination for the material
                                                                                transfer. (mode 1)
16118-M......................  TOYOTA MOTOR SALES USA    173.301(a)(1)...........  To modify the special permit
                                INC.                                                to include language that the
                                                                                permit acts like a competent
                                                                                authority for international
                                                                                shipments. (modes 1, 2, 3,
                                                                                4)
16140-M......................  ERA HELICOPTERS, LLC....  172.101(j)..............  To modify the special permit
                                                                                to add additional hazmat, to
                                                                                expand the transport zones
                                                                                and to add support for the
                                                                                space program. (mode 5)
16172-M......................  ENTEGRIS, INC...........  173.301(f)..............  To modify the special permit
                                                                                to authorize an additional
                                                                                hazmat. (modes 1, 3)
16308-M......................  VERO BIOTECH LLC........  173.175.................  To modify the special permit
                                                                                to clarify the packaging
                                                                                used description. (modes 1,
                                                                                2, 3, 4, 5)
16524-M......................  QUANTUM FUEL SYSTEMS LLC  173.302(a)..............  To modify the special permit
                                                                                to authorize a lighter class
                                                                                of tow vehicle. (modes 1, 2,
                                                                                3)
20323-M......................  GENERAL DYNAMICS MISSION  173.185(a)(1)(i)........  To modify the special permit
                                SYSTEMS, INC.                                       to authorize the
                                                                                transportation of prototype,
                                                                                and low-production lithium
                                                                                ion batteries contained in
                                                                                equipment. (mode 4)
20323-M......................  GENERAL DYNAMICS MISSION  173.185(a)(1)(i)........  To modify the special permit
                                SYSTEMS, INC.                                       to authorize transportation
                                                                                of prototype Lithium Ion
                                                                                Batteries and Lithium Metal
                                                                                Batteries contained in
                                                                                equipment. (mode 4)
20352-M......................  SCHLUMBERGER TECHNOLOGY   173.301(f), 173.302(a),   To modify the special permit
                                CORP.                     173.304(a), 173.304(d),   to authorize a thinner
                                                          178.36(f).                cylinder wall thickness of
                                                                                the cylinder. (modes 1, 2,
                                                                                3)

20396-M......................  HEXAGON DIGITAL WAVE LLC  180.205(g)..............  To modify the special permit
                                                                                to authorize the
                                                                                requalification of tanks
                                                                                manufactured under DOT-SP
                                                                                20391, 16524, 20507 and
                                                                                20418 using modal acoustic
                                                                                emission (MAE) test method.
                                                                                (modes 1, 2, 3)
20549-M......................  CELLBLOCK FCS, LLC......  172.400, 172.700(a),      To modify the special report
                                                          172.102(c)(1), 172.200,   to correct the holder name.
                                                          172.300.                  (modes 1, 3)
20549-M......................  CELLBLOCK FCS, LLC......  172.400, 172.700(a),      To modify the special permit
                                                          172.102(c)(1), 172.200,   to authorize the
                                                          172.300.                  transportation in commerce
                                                                                of larger batteries (Wh >
                                                                                300) without shipping
                                                                                papers, labeling, marking
                                                                                and training. (modes 1, 3)
20571-M......................  CATALINA CYLINDERS, INC.  173.302a,                 To modify the special permit
                                                          178.71(l)(1)(i),          to authorize a 15 year
                                                          178.71(l)(1)(ii).         service life from the
                                                                                cylinder's date of
                                                                                manufacture. (modes 1, 2, 3,
                                                                                4)
20687-M......................  DEPARTMENT OF DEFENSE     172.203(a), 172.203(k),   To modify the special permit
                                (MILITARY SURFACE         172.301(c).               to add additional Division
                                DEPLOYMENT &                                        6.1 hazmat. (modes 1, 4, 5)
                                DISTRIBUTION COMMAND).
20709-M......................  DAIMLER AG..............  172.101(j), 173.185(a)..  To modify the special permit
                                                                                to authorize an increase in
                                                                                the battery and package
                                                                                weight. (mode 4)
----------------------------------------------------------------------------------------------------------------

[FR Doc. 2019-11969 Filed 6-6-19; 8:45 am]
 BILLING CODE 4909-60-P


[Federal Register Volume 84, Number 165 (Monday, August 26, 2019)]
[Notices]
[Page 44642]
[FR Doc No: 2019-18367]

=======================================================================
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SECURITIES AND EXCHANGE COMMISSION

Sunshine Act Meetings

TIME AND DATE: 2:00 p.m. on Wednesday, August 28, 2019.

PLACE: The meeting will be held at the Commission's headquarters, 100 F
Street NE, Washington, DC 20549.

STATUS: This meeting will be closed to the public.

MATTERS TO BE CONSIDERED: Commissioners, Counsel to the Commissioners,
the Secretary to the Commission, and recording secretaries will attend
the closed meeting. Certain staff members who have an interest in the
matters also may be present.
    In the event that the time, date, or location of this meeting
changes, an announcement of the change, along with the new time, date,
and/or place of the meeting will be posted on the Commission's website
at https://www.sec.gov.
    The General Counsel of the Commission, or his designee, has
certified that, in his opinion, one or more of the exemptions set forth
in 5 U.S.C. 552b(c)(3), (5), (6), (7), (8), 9(B) and (10) and 17 CFR
200.402(a)(3), (a)(5), (a)(6), (a)(7), (a)(8), (a)(9)(ii) and (a)(10),
permit consideration of the scheduled matters at the closed meeting.
    The subject matters of the closed meeting will consist of the
following topics:
    Institution and settlement of injunctive actions;
    Institution and settlement of administrative proceedings;
    Resolution of litigation claims; and
    Other matters relating to enforcement proceedings.
    At times, changes in Commission priorities require alterations in
the scheduling of meeting agenda items that may consist of
adjudicatory, examination, litigation, or regulatory matters.

CONTACT PERSON FOR MORE INFORMATION: For further information; please
contact Vanessa A. Countryman from the Office of the Secretary at (202)
551-5400.

    Dated: August 21, 2019.
Vanessa A. Countryman,
Secretary.
[FR Doc. 2019-18367 Filed 8-22-19; 11:15 am]
BILLING CODE 8011-01-P


[Federal Register Volume 81, Number 174 (Thursday, September 8, 2016)]
[Notices]
[Pages 62192-62195]
[FR Doc No: 2016-21649]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78766; File No. SR-BatsBYX-2016-17]

Self-Regulatory Organizations; Bats BYX Exchange, Inc.; Notice of
Filing of Amendment No. 1 and Order Granting Accelerated Approval of a
Proposed Rule Change, as Modified by Amendment No. 1, To Amend Exchange
Rule 11.27 To Describe Changes to System Functionality Necessary To
Implement the Regulation NMS Plan To Implement a Tick Size Pilot
Program

September 2, 2016.

I. Introduction

    On June 29, 2016, Bats BYX Exchange, Inc. (``Exchange'' or ``BYX'')
filed with the Securities and Exchange Commission (``Commission'')
pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Exchange Act'' or ``Act'') \1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change to amend Exchange Rule 11.27(a) to specify that
orders entered into the Exchange's Retail Price Improvement (``RPI'')
Program qualify for certain exceptions to the Regulation NMS Plan to
Implement a Tick Size Pilot Program (``Plan'' or ``Pilot'') and to
adopt Exchange Rule 11.27(c) to describe changes to System \3\
functionality to

implement the Plan.\4\ The proposed rule change was published for
comment in the Federal Register on July 20, 2016.\5\ The Commission
received one comment letter from the Exchange in response to the
Notice.\6\ On September 1, 2016, the Exchange filed an amendment to the
proposed rule change (``Amendment No. 1''), which supersedes and
replaces the proposal in its entirety.\7\
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ The term ``System'' is defined as the ``electronic
communications and trading facility designated by the Board of
Directors of the Exchange through which securities orders of Users
are consolidated for ranking, execution and, when applicable,
routing away.'' See Exchange Rule 1.5(aa).
    \4\ See Securities Exchange Act Release No. 74892 (May 6, 2015),
80 FR 27513 (May 13, 2015) (``Approval Order''). Unless otherwise
specified, capitalized terms used in this rule filing are defined as
set forth in the Plan.
    \5\ Securities Exchange Act Release No. 78333 (July 14, 2016),
81 FR 47198 (``Notice'').
    \6\ See Letter to Brent J. Fields, Secretary, Commission, from
Eric Swanson, General Counsel, Exchange, dated July 26, 2016
(``Exchange Letter'').
    \7\ In Amendment No. 1, the Exchange proposes to: (1) Apply the
changes in proposed Rule 11.27(c) to all Pilot Securities; (2)
clarify in Rule 11.27(c)(1) that the increment for BYX Market Orders
and Rule 11.27(c)(5) that the increment for Market Maker Peg Orders
will be at ``permissible'' increments; (3) state in Rule 11.27(c)(2)
that Market Pegged Orders, Rule 11.27(c)(4) that Discretionary
Orders, and Rule 11.27(c)(6) that Supplemental Peg Orders will not
be accepted in Pilot Securities; (4) clarify in Rule 11.27(c)(3)
that Mid-Point Peg Orders may not be alternatively pegged to one
minimum price variation inside the same side of the NBBO as the
order; (5) delete the proposal to amend Non-Displayed Orders; and
(6) clarify how orders subject to Display-Price Sliding will operate
when they are unexecutable at the locking price.
---------------------------------------------------------------------------

    This order provides notice of filing of Amendment No. 1 and
approves the proposal, as modified by Amendment No. 1, on an
accelerated basis.

II. Description of the Amended Proposal

    The proposed amendments to Exchange Rule 11.27(a) would specify
that orders entered into the Exchange's RPI Program would qualify for
certain exceptions to the Plan.
    Proposed Exchange Rule 11.27(c) would specify the order handling
for the following order types in Pilot Securities: (i) BYX Market
Orders; (ii) Market Pegged Orders; (iii) Mid-Point Peg Orders; (iv)
Discretionary Orders; (v) Market Maker Peg Orders; (vi) Supplemental
Peg Orders; and (vii) orders subject to Display-Price Sliding. As
proposed, such order handling would apply to all orders entered into
the System for Pilot Securities (i.e., Test Group One, Test Group Two,
Test Group Three, and the Control Group).

A. Amendment to Exchange Rule 11.27(a)

    The proposed amendments to Exchange Rule 11.27(a) would specify
that the RPI Program qualifies as a Participant-operated retail
liquidity program under the Plan and that Retail Orders \8\ entered
into the Exchange's RPI Program qualify as Retail Investor Orders under
the Plan. Accordingly, amended Exchange Rule 11.27(a)(4), (a)(5), and
(a)(6) would allow orders entered into the RPI Program to be ranked and
accepted in increments of less than $0.05 in Test Groups One, Two, and
Three, respectively; amended Exchange Rule 11.27 (a)(5) and (a)(6)
would specify that Retail Orders entered into the Exchange's RPI
Program may be provided with price improvement that is at least $0.005
better than the best protected bid and best protected offer (``PBBO'')
\9\ in Test Groups Two and Three, respectively; and amended Exchange
Rule 11.27(a)(6)(D) would specify that Retail Orders entered into the
Exchange's RPI Program that are executed with at least $0.005 price
improvement qualify for the exception to the Trade-at Prohibition in
Test Group Three. In addition, amended Exchange Rule 11.27(a)(4) would
specify that in Test Group One Pilot Securities trades may continue at
any price increment that is permitted under Exchange Rule 11.11, Price
Variations.
---------------------------------------------------------------------------

    \8\ A ``Retail Order'' is defined in Exchange Rule 11.24(a)(2)
as an agency order or riskless principal order that meets the
criteria of FINRA Rule 5320.03 that originates from a natural person
and is submitted to the Exchange by a Retail Member organization
(``RMO''), provided that no change is made to the terms of the order
with respect to price or side of market and the order does not
originate from a trading algorithm or any computerized methodology.
The Exchange believes that the definition of Retail Order is also
substantially similar to the definition of Retail Investor Order
under the Plan. See Section I(DD) of the Plan.
    \9\ See 17 CFR 242.600(57). See also Section I.Z of the Plan.
---------------------------------------------------------------------------

B. Proposed Exchange Rule 11.27(c)

    The Exchange proposes in Exchange Rule 11.27(c) specific procedures
for handling, executing, repricing and displaying certain order types
and order type instructions. The provisions in proposed Rule 11.27(c)
would apply to all Pilot Securities. Further, the Exchange proposes
that only the provisions in Exchange Rules 11.27(a) and (b) would be
limited to the Pilot Period.\10\
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    \10\ The Exchange proposes to clarify in the introduction to
Exchange Rule 11.27 that only the provisions in 11.27(a) and
11.27(b) would be in effect during the Pilot Period.
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1. BYX Market Orders
    Proposed Exchange Rule 11.27(c)(1) provides that for purposes of
determining whether the execution price of a BYX Market Order is more
than 5 percent worse than the national best bid or offer (``NBBO'')
\11\ under current Exchange Rule 11.9(a)(2), the execution price for a
buy (sell) will be rounded down (up) to the nearest permissible
increment.\12\
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    \11\ See Exchange Rule 1.5(o).
    \12\ See Amendment No. 1.
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2. Market Pegged Orders
    Under Exchange Rule 11.9(c)(8)(B), a Market Pegged Order is pegged
to the contra-side NBBO. BYX Users can specify that a Market Pegged
Order will offset the inside quote on the contra side of the market by
an amount (``Offset Amount''). Under proposed Exchange Rule
11.27(c)(2), the Exchange proposes not to accept Market Pegged Orders,
regardless of price, in any Pilot Security.\13\
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    \13\ Id.
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3. Mid-Point Peg Orders
    Under Exchange Rule 11.9(c)(9), the System automatically adjusts
the price of a Mid-Point Peg Order in response to changes in the NBBO
to be pegged to the mid-point of the NBBO, or, alternatively, pegged to
the less aggressive midpoint of the NBBO, or one minimum price
variation inside the same side of the NBBO as the Mid-Point Peg Order.
    Under proposed Exchange Rule 11.27(c)(3), the Exchange proposes
that Mid-Point Peg Orders for Pilot Securities would not be permitted
to alternatively peg to one minimum price variation inside the same
side of the NBBO as the order. \14\
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    \14\ Id.
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4. Discretionary Orders
    Under Exchange Rule 11.9(c)(10), a Discretionary Order is a limit
order with a displayed or non-displayed ranked price and size and an
additional non-displayed ``discretionary price.'' The Exchange proposes
to not accept Discretionary Orders, regardless of price, in any Pilot
Security.\15\
---------------------------------------------------------------------------

    \15\ Id.
---------------------------------------------------------------------------

5. Market Maker Peg Orders
    Under Exchange Rule 11.9(c)(16), a Market Maker Peg Order is a
limit order that is automatically priced by the System at the
Designated Percentage (as defined in Exchange Rule 11.8(d)) away from
the then current national best bid (``NBB'') or national best offer
(``NBO''), or if no NBB or NBO, at the Designated Percentage away from
the last reported sale from the responsible single plan processor in
order to comply with the quotation requirements for Market Makers set
forth in Exchange Rule 11.8(d). The Exchange proposes that Market
Marker Peg Orders to buy (sell) be rounded up (down) to the nearest
permissible increment when the pricing results in an impermissible
increment.

6. Supplemental Peg Orders
    Under Exchange Rule 11.9(c)(19), a Supplemental Peg Order is a non-
displayed limit order that posts to the Exchange Book and thereafter is
eligible for execution at the NBB for buy orders and NBO for sell
orders against routable orders that are equal to or less than the
aggregate size of the Supplemental Peg Order interest available at that
price. The Exchange proposes not to accept Supplemental Peg Orders,
regardless of price, for any Pilot Security.\16\
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    \16\ Id.
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7. Display-Price Sliding
    Under Exchange Rule 11.9(g)(1), an order eligible for display by
the Exchange, that at the time of entry would create a violation of
Rule 610(d) of Regulation NMS by locking or crossing a Protected
Quotation of an external market, would be ranked at the locking price
in the Exchange Book and displayed by the System at one minimum price
variation below the current NBO (for bids) or one minimum price
variation above the current NBB (for offers). The ranked and displayed
prices of an order subject to Display-Price Sliding may be adjusted
once or multiple times depending on the instructions of a User and
changes to the prevailing NBBO.
    The Exchange proposes that orders subject to the Display-Price
Sliding that are unexecutable at the locking price will be ranked at
the midpoint of the NBBO, and displayed one minimum price variation
below (above) the current NBO (NBB) for bids (for offers) for all Pilot
Securities. In the Control Group, Test Group One, and Test Group Two,
these orders would be initially ranked at the locking price and
displayed one minimum price variation away. If a subsequent incoming
Post-Only Order arrives on the Exchange book on the opposite side, then
the orders subject to Display-Price Sliding would be adjusted to rank
at the midpoint of the NBBO and continue to be displayed at one minimum
price variation away. In Test Group Three, orders subject to Display-
Price Sliding would be ranked at the midpoint of the NBBO and displayed
at one minimum price variation away. In addition, the Exchange proposes
to cancel orders subject to Display-Price Sliding when the NBBO widens
and a contra-side Non-Displayed Order is resting on the Exchange Book
at a price that such order would adjust, and the User has selected a
single price adjustment. Like today, if the User has selected multiple
price adjustments an order subject to Display-Price Sliding would not
cancel in this scenario.

III. Discussion and Commission's Findings

    After careful review of the proposed rule change, as modified by
Amendment No. 1, the Commission finds that the proposal, as modified by
Amendment No. 1,\17\ is consistent with the requirements of the
Exchange Act and the rules and regulations thereunder that are
applicable to a national securities exchange.\18\ Specifically, the
Commission finds that the rule change is consistent with Section
6(b)(5) of the Exchange Act, which requires that the rules of a
national securities exchange be designed, among other things, to
prevent fraudulent and manipulative acts and practices, to promote just
and equitable principles of trade, to remove impediments to and perfect
the mechanism of a free and open market and a national market system,
and to protect investors and the public interest; and are not designed
to permit unfair discrimination between customers, issuers, brokers, or
dealers.
---------------------------------------------------------------------------

    \17\ The Commission notes that the Exchange Letter was submitted
in connection with the Exchange's original proposal. Because the
Exchange has filed Amendment No. 1, which supersedes and replaces
the Exchange's original proposal in its entirety, the Commission
does not believe it is necessary to summarize or respond to the
Exchange Letter.
    \18\ In approving this rule change, the Commission has
considered the rule's impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
---------------------------------------------------------------------------

    As noted in the Approval Order, the Plan is by design, an
objective, data-driven test to evaluate how a wider tick size would
impact trading, liquidity, and market quality of securities of smaller
capitalization companies. In addition, the Plan is designed with three
Test Groups and a Control Group, to allow analysis and comparison of
incremental market structure changes on the Pilot Securities and is
designed to produce empirical data that could inform future policy
decisions.
    The Exchange proposes certain changes to modify the operation of
the System for compliance with the Plan. For example, the Exchange
proposes to clarify how BYX Market Orders and Market Maker Peg Orders
would be rounded to permissible increments under the Plan. In addition,
the Exchange proposes to reflect its RPI Program in its Tick Pilot
Rule. The Commission finds that these changes are consistent with the
Section 6(b)(5) of the Exchange Act \19\ and Rule 608 of Regulation NMS
\20\ because they implement the Plan and clarify Exchange rules.
---------------------------------------------------------------------------

    \19\ 15 U.S.C. 78f(b)(5).
    \20\ 17 CFR 242.608.
---------------------------------------------------------------------------

    In addition, the Exchange proposes to eliminate certain order types
and modify certain order handling functions for Pilot Securities
Specifically, the Exchange proposes to no longer accept three order
types: Market Peg Orders, Discretionary Orders, and Supplemental Peg
Orders. The Exchange noted that these orders are infrequently used in
Pilot Securities. The Exchange stated that eliminating these order
types for Pilot Securities could reduce System complexity and maintain
consistent functionality among all Pilot Securities. Finally, the
Exchange noted that these order types would have limited ability to
execute under Test Group Three.
    The Exchange also proposes to change the handling of orders subject
to Display-Price Sliding in Pilot Securities. Orders that are subject
to Display Price-Sliding in Pilot Securities that are unexecutable at
the locking price will be ranked at the midpoint of the NBBO and
displayed one minimum variation away.
    Finally, the Exchange proposes to modify the handling of Mid-Point
Peg Orders in Pilot Securities. As proposed, Mid-Point Peg Orders would
not be able to alternatively peg to one minimum price variation inside
the same side of the NBBO as the order. The Exchange noted that there
is a de minimis usage of the alternative pegging function in Pilot
Securities that does not justify the complexity and risk to the System
that would be created by re-programming the System to support the
function.
    In the Notice, the Commission noted that proposed rule changes,
other than those necessary for compliance with Plan, that are targeted
at Pilot Securities, that have a disparate impact on different Test
Groups and the Control Group, and that are to apply temporarily only
for the Pilot Period, could bias the results of the Pilot and undermine
the value of the data generated in informing future policy decisions.
The Commission notes that the Exchange has modified its proposal so
that those proposed changes that are not necessary for compliance with
the Plan apply equally to all three Test Groups and the Control Group,
and their duration is not limited to the Pilot Period. Thus, the
Commission believes that the incremental design of the Pilot is
maintained such that the data generated by the Test Groups and the
Control Group could allow the Commission and interested parties to
compare the change in market structure of each group vis-[agrave]-vis
the other groups. Further, the Commission does not believe that the
changes would bias the results of the Pilot or undermine the

value of the data generated in informing future policy decisions.
    Accordingly, the Commission finds that the proposed rule change, as
modified by Amendment No.1, is consistent with the requirements of the
Exchange Act.

IV. Solicitation of Comments on Amendment No. 1 to the Proposed Rule
Change

    Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposal, as
modified by Amendment No. 1, is consistent with the Exchange Act.
Comments may be submitted by any of the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-BatsBYX-2016-17 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-BatsBYX-2016-17. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549-1090, on official business days between the hours
of 10:00 a.m. and 3:00 p.m. Copies of such filing will also be
available for inspection and copying at the principal office of the
Exchange. All comments received will be posted without change; the
Commission does not edit personal identifying information from
submissions. You should submit only information that you wish to make
available publicly. All submissions should refer to File Number SR-
BatsBYX-2016-17 and should be submitted on or before September 29,
2016.

V. Accelerated Approval of Proposed Rule Change, as Modified by
Amendment No. 1

    The Commission finds good cause to approve the proposed rule
change, as modified by Amendment No. 1, prior to the thirtieth day
after the date of publication of notice of Amendment No. 1 in the
Federal Register. In Amendment No. 1, the Exchange proposes to: (1)
Apply the changes in proposed Rule 11.27(c) to all Pilot Securities;
(2) clarify in Rule 11.27(c)(1) that the increment for BYX Market
Orders and Rule 11.27(c)(5) that the increment for Market Maker Peg
Orders will be at ``permissible'' increments; (3) state in Rule
11.27(c)(2) that Market Pegged Orders, Rule 11.27(c)(4) that
Discretionary Orders, and Rule 11.27(c)(6) that Supplemental Peg Orders
will not be accepted in Pilot Securities; (4) clarify in Rule
11.27(c)(3) that Mid-Point Peg Orders may not be alternatively pegged
to one minimum price variation inside the same side of the NBBO as the
order; (5) delete the proposal to amend Non-Displayed Orders; and (6)
clarify how orders subject to Display-Price Sliding will operate when
they are unexecutable at the locking price.
    The Commission believes that Amendment No. 1 modifies the proposal
so that it does not cause a disparate impact on different Test Groups
and the Control Group. In addition, the Commission notes that the Pilot
is scheduled to start on October 3, 2016, and accelerated approval
would ensure that the rules of the Exchange would be in place for the
start of the Pilot. Accordingly, the Commission finds good cause,
pursuant to Section 19(b)(2) of the Exchange Act,\21\ to approve the
proposed rule change, as modified by Amendment No. 1, on an accelerated
basis.
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    \21\ 15 U.S.C. 78s(b)(2).
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VI. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Exchange Act,\22\ that the proposed rule change (SR-BatsBYX-2016-17),
as modified by Amendment No. 1, be and hereby is approved on an
accelerated basis.
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    \22\ Id.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\23\
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    \23\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2016-21649 Filed 9-7-16; 8:45 am]
 BILLING CODE 8011-01-P