[Federal Register Volume 84, Number 95 (Thursday, May 16, 2019)]
[Notices]
[Pages 22120-22122]
[FR Doc No: 2019-10177]

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ENVIRONMENTAL PROTECTION AGENCY

[EPA-HQ-OPP-2019-0185; FRL-9993-03]

Pesticides; Draft Revised Method for National Level Endangered
Species Risk Assessment Process for Biological Evaluations of
Pesticides; Notice of Availability and Public Meeting

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

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SUMMARY: The Environmental Protection Agency (EPA) is seeking comment
on a draft revised method for conducting national level threatened and
endangered (listed) species biological evaluations (BEs) for
pesticides. EPA is also announcing a public meeting on June 10, 2019,
where EPA will present the draft revised method and provide an
additional opportunity for the public to provide feedback.

DATES: Meeting: The public meeting will be held from 9:00 a.m. to 12:00
noon, Eastern Standard Time, on June 10, 2019, and you must register to
participate in the meeting using the instructions in Unit III. on or
before May 30, 2019.
    Accommodations requests: To request accommodation of a disability,
please contact the person listed under FOR FURTHER INFORMATON CONTACT,
preferably at least 10 days prior to the meeting, to give EPA as much
time as possible to process your request.
    Comments: Comments must be received on or before July 1, 2019.

ADDRESSES: Meeting: The meeting will be held in the Lobby-level
Conference Center of EPA's Potomac Yard South Bldg. (One Potomac Yard),
2777 South Crystal Drive, Arlington, VA 22202-4501. EPA's Potomac Yard
South Bldg. is approximately 1 mile from the Crystal

City Metro Station. Register to participate in the meeting using the
instructions in Unit III.
    Comments: Submit your comments, identified by docket identification
(ID) number EPA-HQ-OPP-2019-0185, by one of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov.
Follow the online instructions for submitting comments. Do not submit
electronically any information you consider to be Confidential Business
Information (CBI) or other information whose disclosure is restricted
by statute.
     Mail: OPP Docket, Environmental Protection Agency Docket
Center (EPA/DC), (28221T), 1200 Pennsylvania Ave. NW, Washington, DC
20460-0001.
     Hand Delivery: To make special arrangements for hand
delivery or delivery of boxed information, please follow the
instructions at http://www.epa.gov/dockets/contacts.html.
    Additional instructions on commenting or visiting the docket, along
with more information about dockets generally, is available at http://www.epa.gov/dockets.

FOR FURTHER INFORMATION CONTACT: Tracy Perry, Pesticide Re-Evaluation
Division (7508P), Office of Pesticide Programs, Environmental
Protection Agency, 1200 Pennsylvania Ave. NW, Washington, DC 20460-
0001; telephone number:<PHONE_NUMBER>; email address:
<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

I. General Information

A. Does this action apply to me?

    This is directed to the public in general and may be of interest to
a wide range of stakeholders including environmental, farm worker, and
agricultural advocates; the chemical industry; pesticide users; and
members of the public interested in the sale, distribution, or use of
pesticides and/or the potential impacts of pesticide use on listed
species and designated critical habitat. Given the broad interest, the
Agency has not attempted to identify or describe all the specific
entities that may be affected by this action.

B. What should I consider as I prepare my comments for EPA?

    1. Submitting CBI. Do not submit this information to EPA through
regulations.gov or email. Clearly mark the part or all of the
information that you claim to be CBI. For CBI information in a disk or
CD-ROM that you mail to EPA, mark the outside of the disk or CD-ROM as
CBI and then identify electronically within the disk or CD-ROM the
specific information that is claimed as CBI. In addition to one
complete version of the comment that includes information claimed as
CBI, a copy of the comment that does not contain the information
claimed as CBI must be submitted for inclusion in the public docket.
Information so marked will not be disclosed except in accordance with
procedures set forth in 40 CFR part 2.
    2. Tips for preparing your comments. When preparing and submitting
your comments, see the commenting tips at http://www.epa.gov/dockets/comments.html.

C. How can I get copies of this document and other related information?

    A copy of the EPA Draft Revised Method for National Level
Endangered Species Risk Assessment Process for Biological Evaluations
of Pesticides is available in the docket. The docket, identified by
docket ID number EPA-HQ-OPP-2019-0185, is available at http://www.regulations.gov or at the Office of Pesticide Programs Regulatory
Public Docket (OPP Docket) in the Environmental Protection Agency
Docket Center (EPA/DC), West William Jefferson Clinton Bldg., Rm. 3334,
1301 Constitution Ave. NW, Washington, DC 20460-0001. The Public
Reading Room is open from 8:30 a.m. to 4:30 p.m., Monday through
Friday, excluding legal holidays. The telephone number for the Public
Reading Room is<PHONE_NUMBER>, and the telephone number for the OPP
Docket is<PHONE_NUMBER>. Please review the visitor instructions and
additional information about the docket available at http://www.epa.gov/dockets.

II. What action is the agency taking?

A. Authority

    The Endangered Species Act (ESA), 16 U.S.C. 1531 et seq., requires
federal agencies, such as EPA, to ensure that their actions are not
likely to jeopardize the continued existence of species listed as
threatened or endangered under the ESA or destroy or adversely modify
the designated critical habitat of such species. The registration of a
pesticide under the Federal Insecticide, Fungicide, and Rodenticide Act
(FIFRA), 7 U.S.C. 136 et seq., constitutes an EPA ``action'' under the
ESA. If EPA determines a pesticide may affect a listed species or its
designated critical habitat, EPA must initiate consultation with the
U.S. Fish and Wildlife Service and/or the National Marine Fisheries
Service (collectively referred to as the Services), as appropriate. EPA
initiates formal consultation with the Services through the conduct and
transmittal of a biological evaluation (BE) with its findings.

B. Background

    On January 18, 2017, EPA released its first nationwide BEs for
pesticides conducted using a pilot interagency method developed by EPA
and the Services, with collaboration from the U.S. Department of
Agriculture (USDA). The pilot method was developed following the
recommendations of the April 2013 National Academy of Sciences' (NAS)
report, Assessing Risks to Endangered and Threatened Species from
Pesticides. When developing the pilot process, EPA and the Services
intended to revisit and refine the method to address limitations
identified through evaluation of the pilot chemicals (i.e.,
chlorpyrifos, diazinon and malathion). A full description of the pilot
method and the NAS report recommendations are available at: https://www.epa.gov/endangered-species/implementing-nas-report-recommendations-ecological-risk-assessment-endangered-and.
    EPA believes that the pilot method had the following major
limitations: (1) The method did not meaningfully distinguish species
that are likely to be exposed to and affected by the assessed
pesticides from those that are not likely; (2) The level of effort was
too high for EPA to sustain for all pesticides; and (3) The amount of
documentation produced was too great for the public to review and
comment upon in a reasonable timeframe. Consistent with the pilot
process, EPA has developed and is proposing a revised method for the
nationwide evaluation of pesticide risks to listed species that is
based on the experience gained through the pilot BEs and on information
received in public comments on the draft pilot BEs and through several
stakeholder meetings. EPA's draft revised method, which continues to
follow NAS's recommendations, is designed to be: (1) Efficient, relying
upon automation as much as possible; (2) Protective without being
overly conservative; (3) Transparent; and (4) Scientifically
defensible, relying on the best available data.

C. Summary of Major Aspects of Draft Revised Method

    The following is a summary of the major aspects for which the EPA
is seeking comment on the draft revised method for assessing risk to
listed species.
    First, to more accurately represent where and to what extent a
pesticide is likely to be applied, EPA is proposing an approach for
incorporating pesticide-

specific usage data into the listed species consultation process. The
pilot BEs relied on use assumptions from pesticide product labels to
represent where the pilot chemicals were likely to be applied (e.g.,
applied to all labelled crops at maximum application rates
simultaneously). The revised method proposes to incorporate usage data
(e.g., survey data, including actual application rates) in the
determination of where a pesticide is likely to be applied.
    Second, based on the accuracy of the spatial data utilized and the
conservative assumptions related to the action area and potential
drift, EPA is interpreting a <1% overlap of listed species' ranges with
potential use sites as unreliable and not representative of real
exposure potential.
    Third, EPA's revised method proposes the use of probabilistic
methods to determine the likelihood of a species to be adversely
affected by a pesticide. The goal of the probabilistic analysis is to
more fully capture and characterize the variability in the range of
potential exposures and toxicological effects to listed species and to
better inform the biological opinion.
    The fourth major area of revision is to apply a weight-of-evidence
framework to distinguish those listed species that are likely to be
adversely affected (LAA) from those that are not likely to be adversely
affected (NLAA), based on criteria (e.g., dietary preferences,
migration patterns, extent of range potentially exposed) associated
with the likelihood that an individual will be exposed and affected.

D. Public Comments Sought

    EPA is seeking comment on the draft revised method for assessing
risk to listed species, and is specifically interested in comments
regarding the degree to which the following aspects of its draft
revised method are reasonable and represent advances in the pilot
methodologies for assessing risk to listed species: (1) The proposed
methodology for incorporating usage data in Steps 1 and 2 of the BE;
(2) The proposed interpretation that a <1% overlap of listed species'
ranges with potential use sites is unreliable, based on the accuracy of
the underlying data, and does not represent real-world exposure; (3)
The proposed approach for introducing components of probabilistic
analyses into the BE; and (4) The proposed weight-of-evidence
framework.

III. Public Meeting

    EPA will host a public meeting, along with representatives from the
Services and USDA, to present the draft revised method and to provide
an additional opportunity for the public to provide feedback. This
meeting is an opportunity for stakeholders and agencies to continue
their dialogue on the technical aspects of implementing the NAS
recommendations, building on public meetings held in November 2013,
April and October 2014, April 2015, and June 2016, and furthers the
agencies' goal of developing a sustainable methodology and process for
assessing pesticide impacts on listed species that is efficient,
inclusive, and transparent.
    Date: The meeting will be held on Monday, June 10, 2019 from 9:00
a.m. to 12:00 noon, E.S.T. Additional meeting details, including an
agenda, teleconference and webinar information, will be available
shortly in the docket.
    Accommodations requests: To request accommodation of a disability,
please contact the person listed under FOR FURTHER INFORMATION CONTACT,
preferably at least 10 days prior to the meeting to give EPA as much
time as possible to accommodate your request.
    Requests to participate: You must register by Thursday, May 30,
2019 to attend either in person or via teleconference/webinar. Public
comments may be made during the oral comment session of the meeting.
Requests to participate in the meeting and to make oral comments must
be submitted to the person listed under FOR FURTHER INFORMATION
CONTACT.

    Authority: 7 U.S.C. 136 et seq.

    Dated: May 10, 2019.
Alexandra Dapolito Dunn,
Assistant Administrator, Office of Chemical Safety and Pollution
Prevention.
[FR Doc. 2019-10177 Filed 5-15-19; 8:45 am]
BILLING CODE 6560-50-P


[Federal Register: January 15, 2010 (Volume 75, Number 10)]
[Notices]
[Page 2573-2578]
[DOCID:fr15ja10-92]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-61308; File No. SR-NYSEAmex-2009-98]

Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by NYSE Amex LLC Adopting New
Rule 107B--NYSE Amex Equities To Establish a New Class of NYSE Amex
Equities Market Participants Referred to as ``Supplemental Liquidity
Providers'' or ``SLPs''

January 7, 2010.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that on December 30, 2009, NYSE Amex LLC (the ``Exchange'' or
``NYSE Amex'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C.78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to adopt new Rule 107B--NYSE Amex Equities
(``Supplemental Liquidity Providers'') to establish, as a pilot
program, a new class of NYSE Amex Equities market participants referred
to as ``Supplemental Liquidity Providers'' or ``SLPs''. The text of the
proposed rule change is available at the Exchange, the Commission's
Public Reference Room, and http://www.nyse.com.

II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of the proposed rule change is to adopt new Rule 107B--
NYSE Amex Equities (``Supplemental Liquidity Providers'') to establish,
as a pilot program, a new class of NYSE Amex Equities market
participants referred to as ``Supplemental Liquidity Providers'' or
``SLPs''.
Background
    Proposed Rule 107B--NYSE Amex Equities is based on NYSE Rule 107B.
The New York Stock Exchange LLC (``NYSE'') adopted NYSE Rule 107B
governing SLPs as a six-month pilot program commencing in November
2008, which was subsequently extended to March 30, 2010.\4\
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    \4\ See Securities Exchange Act Release Nos. 58877 (October 29,
2008), 73 FR 65904 (November 5, 2008) (SR-NYSE-2008-108) (adopting
SLP pilot program); 59869 (May 6, 2009), 74 FR 22796 (May 14, 2009)
(SR-NYSE-2009-46) (extending SLP pilot program until October 1,
2009); 60756 (October 1, 2009), 74 FR 51628 (October 7, 2009) (SR-
NYSE-2009-100) (extending SLP pilot program until November 30, 2009)
and SR-NYSE-2009-119 (extending SLP pilot program until March 30,
2010).
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    Proposed Rule 107B--NYSE Amex Equities tracks NYSE Rule 107B in its
entirety, subject to such changes as are necessary to apply the Rule to
the Exchange.\5\ In addition, the Exchange proposes to adopt Rule
107B--NYSE Amex Equities as a pilot program commencing on the date the
Rule is filed with the Commission and continuing until March 30, 2010,
the date NYSE's SLP pilot program expires. The Exchange will extend the
duration of its SLP pilot program as needed to track the NYSE's SLP
pilot program and will file for permanent approval at the same time as
the NYSE.
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    \5\ Notably, the Exchange proposes to change the descriptions of
the ``SLP Liaison Committee'' and the ``SLP Panel'' contained in
parts (d)(1) and (j)(2) of the Rule, as well as the procedures for
withdrawal in part (e), to match the proper corporate relationship
between the various constituents described therein. The Exchange's
SLP program would also include both listed and ``traded''
securities, i.e., securities admitted to trading on the Exchange
pursuant to a grant of unlisted trading privileges (``UTP'') (see
part (g)(1) of the Rule).
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Proposed Rule 107B--NYSE Amex Equities
    With this rule filing, the Exchange is proposing a pilot program to
establish a new class of market participants: Supplemental Liquidity
Providers (``SLP''). SLPs will supplement the liquidity provided by
Designated Market

Makers (``DMMs''). SLPs may only enter orders electronically from off
the Floor of the Exchange and may only enter such orders directly into
Exchange systems and facilities designated for this purpose. All SLP
orders must only be for the proprietary account of the SLP member
organization. Thus, an SLP will not handle orders from public customers
or otherwise act on an agency basis. They will have a 5% average
quoting requirement per assigned security. Additionally, if an SLP
posts displayed or non-displayed liquidity in its assigned securities
that results in an execution, the Exchange will pay the SLP a financial
rebate.
    By establishing this new class of market participant, the Exchange
is seeking to provide incentives for quoting and to add competition to
the existing group of liquidity providers. By requiring SLPs to quote
at the NBB or the NBO a percentage of the regular trading day in their
assigned securities, and by paying a rebate when the SLP's interest
results in an execution, the Exchange is rewarding aggressive liquidity
providers in the market. The Exchange believes that this rebate program
will encourage the additional utilization of, and interaction with, the
Exchange's marketplace and provide customers with the premier venue for
price discovery, liquidity, competitive quotes and price improvement.
Responsibilities of the Supplemental Liquidity Provider
SLP's 5% Average Quoting Requirement
    An SLP is required to maintain a bid or an offer at the NBB or NBO
(e.g., the ``inside'') averaging at least 5% of the trading day for
each assigned security in round lots in order to maintain its status as
an SLP. If an SLP fails to meet the quoting requirement for three
consecutive months, the Exchange may revoke the SLP status pursuant to
Section (i)(1)(C)(iii) of the proposed Rule.
SLP's 3% Average or More Quoting Requirement for Rebate Purposes
    If an SLP posts liquidity in its assigned securities that results
in an execution, the Exchange will pay the SLP a financial rebate of
$0.0020 per share priced at or above $1.00, and $0.0005 per share
priced below $1.00, provided the SLP meets its monthly quoting
requirement for rebates averaging at least 3% at the NBB or the NBO in
its assigned securities in round lots (see Section (i) (``Non-
Regulatory Penalties'') and Section (f) (``Calculation of Quoting
Requirements'') of the proposed Rule). Meeting the 3% average quoting
requirement for rebates does not satisfy the 5% average quoting
requirement which SLPs must meet in order to remain in the SLP program.
The rebate calculation is described in more detail below.
    A member organization that acts as an SLP is not permitted to act
as a DMM on the Floor of the Exchange in the same security. Thus, a
member organization that acts as a DMM on the Floor may not also act as
an SLP in those securities registered to the DMM unit.
    Like all other member organizations of the Exchange, an SLP must
abide by Exchange and SEC rules and regulations and must deal in a
manner consistent with just and equitable principles of trade. SLPs are
subject to regulatory oversight by the Exchange and FINRA.
Assigned Securities
    During the proposed SLP pilot program, the SLP Liaison Committee,
as defined in Section (d)(1) of the proposed Rule, will initially
assign a cross section of Exchange-listed and/or traded securities to
each SLP. The SLP Liaison Committee will determine which securities
will be assigned to an SLP and the number of securities assigned to
each SLP. The Exchange's SLP program will include both listed and
traded securities, as it is in the process of submitting a separate
filing to permit it to trade Nasdaq-listed securities on a UTP basis.
See, e.g., NYSE Amex Trader Notice, dated September 8, 2009.
    The Exchange believes that the SLP pilot program will provide the
Exchange with a unique opportunity to monitor the success of the SLP
incentives by starting with a cross section of securities. By doing so,
the Exchange will be better equipped to address actual and potential
administrative and operational problems without unnecessary risk to the
Exchange and to its customers. The SLP pilot program will also provide
the Exchange with the opportunity to identify and address any such
problems and make beneficial changes to the SLP program.
    In addition to its usefulness to the Exchange, the SLP pilot
program will provide the SLPs with essential practical experience with
the new program and enable the SLPs to become proficient in the SLP
role before expanding the assigned securities to include all Exchange-
listed or traded securities.
    The SLP Liaison Committee, in its discretion, will assign one or
more SLPs to each security depending upon the trading activity of the
security. The SLP Liaison Committee will likely assign a greater number
of SLPs to more actively traded securities.
Qualifications of the Supplemental Liquidity Provider
    A member organization of the Exchange must have the following
qualifications in order to obtain SLP status:
    (1) Adequate technology to support electronic trading through the
related systems and facilities of the Exchange and report qualifying
trading activity to Exchange systems utilizing unique and separate
mnemonics specifically dedicated to SLP trading activity;
    (2) Adequate trading infrastructure to support SLP trading
activity, which includes support staff to maintain operational
efficiencies in the SLP program and adequate administrative staff to
manage the member organization's SLP program;
    (3) Quoting performance that demonstrates an ability to meet the 5%
quoting requirement in each assigned security;
    (4) A disciplinary history that is consistent with just and
equitable business practices; and
    (5) The business unit of the member organization acting as an SLP
must have in place adequate information barriers between the SLP unit
and the member organization's customer, research and investment banking
business.
    Adequate Technology for Trading and Reporting: Because the SLP will
only be permitted to trade electronically from off the Floor of the
Exchange, a member organization's off-Floor technology must be fully
automated to accommodate the Exchange's trading and reporting systems
that are relevant to operating as an SLP. If a member organization is
unable to support the relevant electronic trading and reporting systems
of the Exchange for SLP trading activity, it will not qualify as an
SLP.
    Adequate Trading Infrastructure: Upon applying for status as an
SLP, a member organization must have adequate trading infrastructure,
which includes support staff to maintain operational efficiencies in
the SLP program and adequate administrative staff to manage the member
organization's SLP program.
    Quoting Performance: Upon applying for SLP status, a member
organization's ability to meet the 5% quoting requirement may be
demonstrated by past and/or current trading activity. If an applicant
has not demonstrated an ability to meet the 5% quoting requirement to
the satisfaction of the SLP Liaison Committee, the applicant may not
qualify as an SLP.

    Disciplinary History: Upon applying for SLP status, a member
organization's disciplinary history must reflect conduct that is
consistent with just and equitable business practices.
    Information Barriers: The business unit of the SLP that submits
orders on behalf of the member organization must have in place adequate
information barriers between the SLP unit and the member organization's
customer, research and investment banking business.
SLP Application Process
    To become an SLP, a member organization must submit an SLP
application form with all supporting documentation to the SLP Liaison
Committee. The SLP Liaison Committee will determine whether an
applicant is qualified to become an SLP based on the qualifications
described in Section (c) of the proposed Rule (``Qualifications of a
Supplemental Liquidity Provider''). The qualifications focus on the
adequacy of the applicant's trading and reporting technology and
trading infrastructure. The applicant's disciplinary history will be
considered as well.
    After submission of the SLP application form and supporting
documentation, the SLP Liaison Committee will notify the applicant
member organization of its decision. If an applicant is approved by the
SLP Liaison Committee to receive SLP status, the applicant must
establish connectivity with relevant Exchange systems and facilities.
    The processing of all applications may be suspended when the SLP
Liaison Committee has determined that there is a sufficient number of
SLPs assigned to each eligible security in the SLP program (see Section
(g)(2) of the proposed Rule).
    If an applicant is disapproved or ``disqualified,'' pursuant to
Section (i)(2) of the proposed Rule, by the SLP Liaison Committee, such
applicant may request an appeal of such disapproval or disqualification
by the SLP Panel as provided in Section (j) (``Appeal of Non-Regulatory
Penalties'') of this Rule, and/or reapply for SLP status three (3)
months after the month in which the applicant received disapproval or
disqualification notice from the Exchange (see Section (d)(6) of the
proposed Rule).
Voluntary Withdrawal of SLP Status
    An SLP may withdraw from the status of an SLP at any time by giving
notice to the SLP Liaison Committee, the Market Surveillance Division
of NYSE Regulation, Inc. and NYSE Euronext employees of the Operations
Division (see Section (e) (``Voluntary Withdrawal of Supplemental
Liquidity Provider Status'' of the proposed Rule). However, withdrawal
of SLP status will not become effective until the withdrawing SLP's
assigned securities are reassigned to other SLPs. After the notice of
withdrawal is received by the SLP Liaison Committee, the Market
Surveillance Division and the Operations Division, the SLP Liaison
Committee will reassign said securities as soon as practicable but no
later than 30 days of the date said notice is received by the SLP
Liaison Committee, the Market Surveillance Division and the Operations
Division. In the event the reassignment of securities takes longer than
the 30-day period, the withdrawing SLP will have no obligations under
this Rule 107B-NYSE Amex Equities and will not be held responsible for
any matters concerning its previously assigned SLP securities upon
termination of this 30-day period.
Quoting Requirements of the Supplemental Liquidity Provider
    In order to maintain SLP status, an SLP is required to maintain a
bid or an offer at the NBB or NBO on the Exchange averaging at least 5%
of the trading day in round lots for each assigned security.\6\ While
the SLP may provide displayed and non-displayed liquidity (e.g.,
reserve and dark orders), the 5% average quoting requirement can only
be satisfied when an SLP posts displayed liquidity in its assigned
securities in round lots at the NBB or the NBO. Thus, non-displayed
liquidity will not be counted as credit towards the 5% quoting
requirement. Additionally, tick sensitive orders (i.e., ``Sell Plus,''
``Buy Minus'' (see Rule 13) and ``Buy Minus Zero Plus'') will not be
counted as credit towards the 5% quoting requirement.
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    \6\ See Exhibit 5, Section (a) of the proposed Rule.
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    In order for an SLP to be entitled to a rebate, an SLP must post
liquidity on the Exchange that executes against incoming orders and
meet the monthly minimum quoting requirement averaging at least 3% at
the NBB or the NBO in round lots in its assigned securities (see
Section (b) (``Financial Rebates for Executed Transactions'') in the
proposed Rule). If the SLP does not meet a minimum monthly quoting
requirement averaging at least 3%, an SLP will not be entitled to a
rebate on executed volume in that given month in that particular
affected security (see Section (i) (``non-Regulatory Penalties'') of
the proposed Rule).
    The SLP is not subject to any minimum or maximum quoting size
requirement apart from the requirement that an order be for at least
one round lot (see Section (f)(2) of the proposed Rule).
    An SLP must use its SLP mnemonic when trading as an SLP in its
assigned securities in order to obtain credit for their SLP trading
activity (see Section (f)(2) of the proposed Rule). Quoting and rebate
credit will be measured only by using the SLP's unique mnemonics
specifically designated for SLP trading activity.
Calculation of the Quoting Requirements
    The SLP's quoting requirements will not be in effect in the first
month the SLP operates as an SLP. The Exchange will provide the SLP
with a one-month grace period to allow preparation time for the SLP.
Therefore, this quoting requirement will not take effect until the
second month of an SLP's operation as an SLP.
    Beginning with the second month an SLP is operating as an SLP, an
SLP must satisfy the 5% quoting requirement for each assigned
security.\7\ The SLP Liaison Committee will determine whether an SLP
has met its quoting requirement for the trading days \8\ in a calendar
month by calculating the following:
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    \7\ NYSE Euronext's Strategic Analysis Department will be
responsible for generating SLP performance data and providing such
data to the SLP Liaison Committee in order to determine which SLPs
are meeting their quoting requirements and are eligible for
financial rebates.
    \8\ For purposes of Section (f)(1) of the proposed rule text
(Exhibit 5), ``trading day'' shall mean any day on which the
Exchange is scheduled to be open for business. Days on which the
Exchange closes prior to 4 p.m. (Eastern Time) for any reason, which
may include any regulatory halt or trading halt, shall be considered
a trading day.
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    (1) The ``Daily NBB Quoting Percentage'' by determining the
percentage of time an SLP has at least one round lot of displayed
interest in an Exchange bid at the NBB during each trading day for a
calendar month;
    (2) The ``Daily NBO Quoting Percentage'' by determining the
percentage of time an SLP has at least one round lot of displayed
interest in an Exchange offer at the NBO during each trading day for a
calendar month;
    (3) The ``Average Daily NBBO Quoting Percentage'' for each trading
day by summing the ``Daily NBB Quoting Percentage'' and the ``Daily NBO
Quoting Percentage'' in each assigned security then dividing such sum
by two; and
    (4) The ``Monthly Average NBBO Quoting Percentage'' for each
assigned security by summing the security's ``Average Daily NBBO
Quoting

Percentages'' for each trading day in a calendar month then dividing
the resulting sum by the total number of trading days in such calendar
month.
Example of Quoting Requirement Calculation
    Below is an example of a quoting requirement calculation. For
purposes of this example, it is assumed that SLP No. 1 has two assigned
securities, A and B, and that there were 5 trading days in the selected
calendar month.
    The ``Average Daily NBBO Quoting Percentage'' for SLP No. 1 is
calculated for each security by summing the daily NBB and NBO of each
security for that day and dividing that number by two:

----------------------------------------------------------------------------------------------------------------
                                                                                ``Average
                                                                  Calculation of ``Average Daily    Daily NBBO
          Trading days                  NBB             NBO        NBBO Quoting Percentage'' for      Quoting
                                                                             SLP No. 1             Percentage''
----------------------------------------------------------------------------------------------------------------
                                                   Security A
----------------------------------------------------------------------------------------------------------------
T1..............................              4%              6%  4% + 6% = 10% divided by 2 =                5%
                                                                   5%.
T2..............................              3%              5%  3% + 5% = 8% divided by 2 = 4%              4%
T3..............................              4%              4%  4% + 4% = 8% divided by 2 = 4%              4%
T4..............................              6%              8%  6% + 8% = 14% divided by 2 =                7%
                                                                   7%.
T5..............................              5%              5%  5% + 5% = 10% divided by 2 =                5%
                                                                   5%.
----------------------------------------------------------------------------------------------------------------
                                                   Security B
----------------------------------------------------------------------------------------------------------------
T1..............................              5%              7%  5% + 7% = 12% divided by 2 =                6%
                                                                   6%.
T2..............................              4%              6%  4% + 6% = 10% divided by 2 =                5%
                                                                   5%.
T3..............................              6%              8%  6% + 8% = 14% divided by 2 =                7%
                                                                   7%.
T4..............................              7%              9%  7% + 9% = 16% divided by 2 =                8%
                                                                   8%.
T5..............................              9%              9%  9% + 9% = 18% divided by 2 =                9%
                                                                   9%.
----------------------------------------------------------------------------------------------------------------

    The ``Monthly Average NBBO Quoting Percentage'' for each security
is then calculated by summing the security's ``Average Daily NBBO
Quoting Percentages'' for all five trading days of the calendar month
and then dividing the resulting total by the number of trading days in
the calendar month (in this instance 5).

----------------------------------------------------------------------------------------------------------------
    ``Average Daily NBBO Quoting Percentage''                                                        ``Monthly
-------------------------------------------------  Calculation of ``Monthly Average NBBO Quoting   Average NBBO
                                                            Percentage'' for SLP No. 1                Quoting
   T1        T2        T3        T4        T5                                                      Percentage''
----------------------------------------------------------------------------------------------------------------
                                                   Security A
----------------------------------------------------------------------------------------------------------------
     5%        4%        4%        7%        5%   5% + 4% + 4% + 7% + 5% = 25% divided by 5 = 5%              5%
----------------------------------------------------------------------------------------------------------------
                                                   Security B
----------------------------------------------------------------------------------------------------------------
     6%        5%        7%        8%        9%   6% + 5% + 7% + 8% + 9% = 35% divided by 5 = 7%              7%
----------------------------------------------------------------------------------------------------------------

Financial Rebates for Executed Transactions
    When an SLP posts liquidity, displayed or non-displayed, on the
Exchange in its SLP assigned securities and such liquidity is executed
against an incoming order, the SLP will receive a financial rebate for
that executed transaction provided the SLP has met it rebate quoting
requirement averaging at least 3% at the NBB or the NBO in each
assigned security pursuant to Section (i)(1)(A) and (B) (``Non-
Regulatory Penalties''). An SLP will only receive a rebate when it has
met the monthly 3% or better quoting requirement in its assigned
securities and the SLP's posted displayed or non-displayed liquidity
results in an execution.
SLP Rebate Calculation
    The SLP rebate will be $0.0020 per share priced at or above $1.00,
and $0.0005 per share priced below $1.00, for executions when the SLP
provides liquidity.\9\ The rebate will be paid for displayed and non-
displayed orders provided that the SLP meets the quoting requirement
averaging 3% or more at the NBB or NBO in its assigned securities for a
given month. If an SLP does not meet the average quoting requirement
described above, such SLP will not be entitled to a rebate. As
discussed previously, if an SLP does not meet its quoting requirement
averaging 5% at the NBB or the NBO for each assigned security for 3
consecutive months, such SLP may be disqualified from SLP status. The
Exchange will track the volume and quoting requirement of SLPs by their
designated SLP mnemonics.
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    \9\ The Exchange will file a separate fee filing with the SEC
pursuant to the provisions of Section 19b-4 that will outline the
SLP rebate program described above. The calculation and amount of
the SLP rebate will be published in the NYSE Amex Equities Price
List, available on the Exchange's Web site.
---------------------------------------------------------------------------

    Except for the rebate, all other SLP fees are the same as existing
customer fees on the Exchange (see the NYSE Amex Equities Price List on
the Exchange Web site).
SLP Parity With Other Market Participants Pursuant to Rule 72--NYSE
Amex Equities
    Exchange systems are responsible for share allocation and create
interest files for each market participant. Individual Floor brokers
and the DMM registered in a security each constitute single
participants. All off-Floor orders entered in Exchange systems at the
Exchange BBO together constitute a single participant (``Book
Participant'') for the purpose of share allocation. SLP orders will be
in the ``Book Participant''

category pursuant to Rule 72--NYSE Amex Equities.
Market Data and Trading Information Available to the SLP
    The universe of trading information and market data available to
the SLP will include market data published by the Exchange and all
other automated trading centers (as defined in Rule 600 of Regulation
NMS), trading information published on the Consolidated Tape and on the
NYSE Amex OpenBook[supreg].\10\ Thus, the SLP will have the same
published trading information and market data that all other Exchange
customers have available to them.
---------------------------------------------------------------------------

    \10\ The NYSE Amex OpenBook[supreg] is provided by the Exchange
to vendors and customers in two modes. The first displays the depth
of the market refreshed every five seconds. The second displays the
depth of the market in real time. NYSE Amex OpenBook[supreg]
discloses limit order interest at the price at the best bid and
offer and at prices below the best bid and above the best offer.
---------------------------------------------------------------------------

Non-Regulatory Penalties
    If an SLP fails to meet the 5% quoting requirement for any assigned
security, the SLP may be subject to non-regulatory penalties imposed by
the SLP Liaison Committee (see Section (i) of the proposed Rule). Such
non-regulatory penalties include: (1) Denial of the financial rebate;
(2) removal of one or more assigned securities from the SLP; and (3)
disqualification. These non-regulatory penalties and the conditions
under which such penalties are imposed may be appealed by an SLP as
provided in Section (j) (``Appeal of a Non-Regulatory Penalty'') of the
proposed Rule and described in more detail below.
Penalties for Quoting Less Than 5% in a Given Calendar Month
    In a given calendar month, if an SLP maintains a quote at the NBB
or NBO averaging 3% of the trading day, but less than the average of 5%
of the trading day in any assigned security, the SLP will receive a
financial rebate for that calendar month for executed transactions in
that particular security as described in Section (b) (``Rebates for
Executed Transactions'') of the proposed Rule. Failure to meet the 5%
quoting requirement for each assigned security in that month will be
counted towards the three-month disqualification period provided in
paragraph (i)(C) of the proposed Rule.
    In a given calendar month, if an SLP maintains a quote at the NBB
or the NBO averaging less than 3% of the regular trading day in an
assigned security, the SLP will not receive the financial rebate for
that month for transactions executed in that particular assigned
security. The failure to meet the 5% quoting requirement for any
assigned security in that month will also be counted towards the three-
month disqualification period.
    If an SLP fails to meet the 5% quoting requirement for three
consecutive calendar months in any assigned security, the SLP Liaison
Committee may, in its discretion, take the following non-regulatory
action:
    (1) Revoke the assignment of the affected security(ies);
    (2) Revoke the assignment of an additional, unaffected security
from an SLP; or
    (3) Disqualify a member organization's status as an SLP.
Disqualification Determinations
    In the second calendar month that an SLP fails to meet the 5%
quoting requirement, the SLP Liaison Committee will notify the SLP in
writing that the SLP may be disqualified if it fails to meet the
quoting requirement the third consecutive month.\11\ If the SLP fails
to meet the 5% quoting requirement for a third consecutive month, the
SLP may be disqualified from SLP status.
---------------------------------------------------------------------------

    \11\ The SLP Liaison Committee will be responsible for issuing
the letter to an SLP that fails to meet its quoting requirement for
three consecutive months. It will also be responsible for advising
an SLP of its eligibility or ineligibility to become an SLP.
---------------------------------------------------------------------------

    When disqualification determinations are made, the SLP Liaison
Committee will provide a disqualification notice to the member
organization informing the member organization of its disqualification
as an SLP.
    If a member organization is disqualified from its status as an SLP
pursuant to Section (i)(1)(C)(iii) of the proposed Rule, the member
organization may appeal the disqualification pursuant to Section (j)
(``Appeal of a Non-Regulatory Penalties'') of the proposed Rule, or re-
apply for SLP status in accordance with Section (d)(6) (``Re-
application for SLP Status'') of the proposed Rule. However, the re-
application process may not begin until three calendar months after the
month in which the member organization received its disqualification
notice.
Appeal of Non-Regulatory Penalties
    An SLP may request an appeal of the decision to impose a non-
regulatory penalty as provided in Section (j) of the proposed Rule.
Upon receiving a request for an appeal, a panel of NYSE Euronext
employees referred to as the ``SLP Panel'' will review the decision to
impose non-regulatory penalties. The SLP Panel shall consist of the
Exchange's Chief Regulatory Officer (``CRO''), or a designee of the
CRO, and two (2) officers of the Exchange designated by the NYSE
Euronext Head of the U.S. Markets Division.
    The SLP Panel will review the facts of the subject non-regulatory
penalty and render a decision as to the correctness of the decision to
impose the penalty. The SLP Panel may overturn or modify an action
taken by the SLP Liaison Committee, and all determinations by the SLP
Panel will constitute final action by the Exchange on the disputed
matter.
Regulatory Oversight of SLPs
    Member organizations that act as SLPs will be subject to regulatory
oversight by the Exchange and FINRA.
Proposed amendments to Rule 2A--NYSE Amex Equities
    In conjunction with the adoption of Rule 107B--NYSE Amex Equities,
the Exchange also proposes to amend Rule 2A(c)--NYSE Amex Equities to
accommodate the Exchange's authority to approve or disapprove the
designation of a member or member organization as an SLP.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with, and furthers the objectives of, Section 6(b)(5) of the Act,\12\
in that it is designed 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, in general, to protect investors and the
public interest. The proposed rule change also supports the principles
of Section 11A(a)(1) \13\ of the Act in that it seeks to ensure the
economically efficient execution of securities transactions and fair
competition among brokers and dealers and among exchange markets.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78f(b)(5).
    \13\ 15 U.S.C. 78k-1(a)(1).
---------------------------------------------------------------------------

    The Exchange believes that the proposed Rule is consistent with
these principles in that it seeks to establish a new class of market
participant that will provide additional liquidity to the market and
add competition to the existing group of liquidity providers. The
Exchange believes that by requiring an SLP to quote at the NBB or the
NBO a percentage of the regular trading day in their assigned
securities, and by paying an SLP a rebate when its posted interest
results in an execution, the Exchange is rewarding aggressive liquidity
providers in the market, and

by doing so, the Exchange will encourage the additional utilization of,
and interaction with, the NYSE Amex Equities market and provide
customers with the premier venue for price discovery, liquidity,
competitive quotes and price improvement.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.

C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others

    No written comments were solicited or received with respect to the
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action

    The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \14\ and Rule 19b-4(f)(6) thereunder.\15\
Because the proposed rule change does not: (i) Significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.\16\
---------------------------------------------------------------------------

    \14\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \15\ 17 CFR 240.19b-4(f)(6).
    \16\ In addition, Rule 19b-4(f)(6) requires a self-regulatory
organization to give the Commission written notice of its intent to
file the proposed rule change, along with a brief description and
text of the proposed rule change, at least five business days prior
to the date of filing of the proposed rule change, or such shorter
time as designated by the Commission. The Exchange has satisfied
this requirement.
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule
change, the Commission may summarily abrogate such rule change if it
appears to the Commission that such action is necessary or appropriate
in the public interest, for the protection of investors, or otherwise
in furtherance of the purposes of the Act.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the 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 e-mail to<EMAIL_ADDRESS>Please include
File Number SR-NYSEAmex-2009-98 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NYSEAmex-2009-98. This
file number should be included on the subject line if e-mail 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,\17\ 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 inspection and copying in the Commission's Public
Reference Room, 100 F Street, NE, Washington, DC 20549, on official
business days between the hours of 10 a.m. and 3 p.m. Copies of such
filing also will 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 publicly available. All submissions should refer to
File Number SR-NYSEAmex-2009-98 and should be submitted on or before
February 5, 2010.
---------------------------------------------------------------------------

    \17\ The text of the proposed rule change is available on the
Commission's Web site at http://www.sec.gov.
    \18\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-637 Filed 1-14-10; 8:45 am]
BILLING CODE 8011-01-P