[Federal Register Volume 87, Number 248 (Wednesday, December 28, 2022)]
[Notices]
[Pages 79924-79930]
[FR Doc No: 2022-28199]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-96563; File No. SR-MRX-2022-29]

Self-Regulatory Organizations; Nasdaq MRX, LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend MRX
Options 7, Section 6

December 21, 2022.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on December 16, 2022, Nasdaq MRX, LLC (``MRX'' or ``Exchange'') filed
with the Securities and Exchange Commission (``SEC'' or ``Commission'')
the proposed rule change as described in Items I, II, and III, below,
which Items have been prepared by the Exchange. 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\ 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 amend MRX's Pricing Schedule at Options 7,
Section 6.
    The text of the proposed rule change is available on the Exchange's
website at https://listingcenter.nasdaq.com/rulebook/mrx/rules, at the
principal office of the Exchange, and at the Commission's Public
Reference Room.

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 Exchange 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 these 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 aspects of such statements.

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

1. Purpose
    MRX proposes to amend its Pricing Schedule at Options 7, Section 6,
Ports and Other Services, to assess port fees, which were not assessed
until this year. Prior to this year, MRX did not assess its Members any
port fees. MRX launched its options market in 2016 \3\ and Members did
not pay any port fees until 2022.
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    \3\ The Exchange initially filed the proposed pricing changes on
May 2, 2022 (SR-MRX-2022-04) instituting fees for membership, ports
and market data. On June 29, 2022, the Exchange withdrew that
filing, and submitted separate filings for membership, ports and
market data. SR-MRX-2022-06 replaced the port fees set forth in SR-
MRX-2022-04. On July 1, 2022, SR-MRX-2022-06 was withdrawn and
replaced with SR-MRX-2022-09. On August 25, 2022, SR-MRX-2022-09 was
withdrawn and replaced with SR-MRX-2022-12. On October 11, 2022, SR-
MRX-2022-12 was withdrawn and replaced with SR-MRX-2022-20. On
December 8, 2022, SR-MRX-2022-20 was withdrawn and replaced with SR-
MRX-2022-28. The instant filing replaces SR-MRX-2022-28 which was
withdrawn on December 16, 2022.
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    Newly-opened exchanges often charge no fees for certain services,
such as ports, in order to attract order flow to an exchange, and later
amend their fees to charge for those services.\4\ The proposed port
fees within Options 7, Section 6, Ports and Other Services, are
described below.
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    \4\ See, e.g., Securities Exchange Act Release No 90076 (October
2, 2020), 85 FR 63620 (October 8, 2020) (Notice of Filing and
Immediate Effectiveness of a Proposed Rule Change To Adopt the
Initial Fee Schedule and Other Fees for MEMX LLC).
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    The Exchange proposes to amend fees for the following ports within
Options 7, Section 6: (1) FIX,\5\ (2) SQF; \6\ (3) SQF Purge; \7\ (4)
OTTO; \8\ (5) CTI; \9\ (6) FIX DROP; \10\ and Disaster Recovery
Ports.\11\ Currently, no fees are being assessed for these ports.
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    \5\ ``Financial Information eXchange'' or ``FIX'' is an
interface that allows Members and their Sponsored Customers to
connect, send, and receive messages related to orders and auction
orders to the Exchange. Features include the following: (1)
execution messages; (2) order messages; (3) risk protection triggers
and cancel notifications; and (4) post trade allocation messages.
See Supplementary Material .03(a) to Options 3, Section 7.
    \6\ ``Specialized Quote Feed'' or ``SQF'' is an interface that
allows Market Makers to connect, send, and receive messages related
to quotes, Immediate-or-Cancel Orders, and auction responses to the
Exchange. Features include the following: (1) options symbol
directory messages (e.g., underlying and complex instruments); (2)
system event messages (e.g., start of trading hours messages and
start of opening); (3) trading action messages (e.g., halts and
resumes); (4) execution messages; (5) quote messages; (6) Immediate-
or-Cancel Order messages; (7) risk protection triggers and purge
notifications; (8) opening imbalance messages; (9) auction
notifications; and (10) auction responses. The SQF Purge Interface
only receives and notifies of purge requests from the Market Maker.
Market Makers may only enter interest into SQF in their assigned
options series. See Supplementary Material .03(c) to Options 3,
Section 7.
    \7\ SQF Purge is a specific port for the SQF interface that only
receives and notifies of purge requests from the Market Maker.
Dedicated SQF Purge Ports enable Market Makers to seamlessly manage
their ability to remove their quotes in a swift manner. The SQF
Purge Port is designed to assist Market Makers in the management of,
and risk control over, their quotes. Market Makers may utilize a
purge port to reduce uncertainty and to manage risk by purging all
quotes in their assigned options series. Of note, Market Makers may
only enter interest into SQF in their assigned options series.
Additionally, the SQF Purge Port may be utilized by a Market Maker
in the event that the Member has a system issue and determines to
purge its quotes from the order book.
    \8\ ``Ouch to Trade Options'' or ``OTTO'' is an interface that
allows Members and their Sponsored Customers to connect, send, and
receive messages related to orders, auction orders, and auction
responses to the Exchange. Features include the following: (1)
options symbol directory messages (e.g., underlying and complex
instruments); (2) system event messages (e.g., start of trading
hours messages and start of opening); (3) trading action messages
(e.g., halts and resumes); (4) execution messages; (5) order
messages; (6) risk protection triggers and cancel notifications; (7)
auction notifications; (8) auction responses; and (9) post trade
allocation messages. See Supplementary Material .03(b) to Options 3,
Section 7. Unlike FIX, which offers routing capability, OTTO does
not permit routing.
    \9\ Clearing Trade Interface (``CTI'') is a real-time cleared
trade update message that is sent to a Member after an execution has
occurred and contains trade details specific to that Member. The
information includes, among other things, the following: (i) The
Clearing Member Trade Agreement (``CMTA'') or The Options Clearing
Corporation (``OCC'') number; (ii) badge or mnemonic; (iii) account
number; (iv) information which identifies the transaction type
(e.g., auction type) for billing purposes; and (v) market
participant capacity. See Options 3, Section 23(b)(1). CTI Ports are
not required for an MRX Member to meet its regulatory obligations.
Members receive free daily reports listing trade executions from the
Exchange.
    \10\ FIX DROP is a real-time order and execution update message
that is sent to a Member after an order been received/modified or an
execution has occurred and contains trade details specific to that
Member. The information includes, among other things, the following:
(i) executions; (ii) cancellations; (iii) modifications to an
existing order; and (iv) busts or post-trade corrections. See
Options 3, Section 23(b)(3). FIX DROP Ports are not required for an
MRX Member to meet its regulatory obligations. Members receive free
daily reports listing open orders and trade executions from the
Exchange.
    \11\ Disaster Recovery ports provide connectivity to the
Exchange's disaster recovery data center, to be utilized in the
event the Exchange should failover during a trading day.
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    The Exchange proposes to assess no fee for the first FIX Port
obtained by an Electronic Access Member \12\ or the first SQF Port
obtained by a Market Maker.\13\ The Exchange proposes to assess a FIX
Port Fee of $650 per port, per month, per account number \14\ for each
subsequent port beyond the first port. The Exchange proposes to assess
an SQF Port Fee of $1,250 per port, per month for each subsequent port
beyond the first port.\15\ The Exchange proposes to assess an SQF Purge
Port Fee of $1,250 per port, per month. The Exchange proposes to assess
an OTTO Port Fee of $650 per port, per month, per account number. The
Exchange proposes to assess a CTI Port Fee and a FIX Drop Port Fee of
$650 per port, per month.
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    \12\ The first FIX Port would be provided to each Electronic
Access Member. The term ``Electronic Access Member'' or ``EAM''
means a Member that is approved to exercise trading privileges
associated with EAM Rights. See General 1, Section 1(a)(6). Also,
the first SQF Port would be provided to each Market Maker. The term
``Market Makers'' refers to ``Competitive Market Makers'' and
``Primary Market Makers'' collectively. See Options 1, Section
1(a)(21). The term ``Competitive Market Maker'' means a Member that
is approved to exercise trading privileges associated with CMM
Rights. See Options 1, Section 1(a)(12). The term ``Primary Market
Maker'' means a Member that is approved to exercise trading
privileges associated with PMM Rights. See Options 1, Section
1(a)(35).
    \13\ The first SQF Port would be provided to each Market Maker.
The term ``Market Makers'' refers to ``Competitive Market Makers''
and ``Primary Market Makers'' collectively. See Options 1, Section
1(a)(21). The term ``Competitive Market Maker'' means a Member that
is approved to exercise trading privileges associated with CMM
Rights. See Options 1, Section 1(a)(12). The term ``Primary Market
Maker'' means a Member that is approved to exercise trading
privileges associated with PMM Rights. See Options 1, Section
1(a)(35).
    \14\ An ``account number'' shall mean a number assigned to a
Member. Members may have more than one account number. See Options
1, Section 1(a)(1). Account numbers are free on MRX.
    \15\ SQF's Port Fees are assessed a higher dollar fee as
compared to FIX and OTTO ports ($1,250 vs. $650) because the
Exchange has to maintain options assignments within SQF and manage
quoting traffic. Market Makers may utilize SQF Ports in their
assigned options series. Market Maker badges are assigned to
specific SQF ports to manage the option series in which a Market
Maker may quote. Additionally, because of quoting obligations
provided for within Options 2, Section 5, Market Makers are required
to provide liquidity in their assigned options series which
generates quote traffic. The Exchange notes because of the higher
fee, SQF ports are billed per port, per month while FIX and OTTO
ports are billed per port, per month, per account number. Members
may have more than one account number.
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    The Exchange proposes to assess no fee for the first FIX Disaster
Recovery Port obtained by an Electronic Access Member \16\ or the first
SQF Disaster

Recovery Port obtained by a Market Maker.\17\ The Exchange proposes to
assess each additional FIX Disaster Recovery Port and each additional
SQF Disaster Recovery Port a fee of $50 per port, per month, per
account number. Additionally, the Exchange proposes to assess a
Disaster Recovery Fee for SQF Purge and OTTO Ports of $50 per port, per
month, per account number. Finally, the Exchange proposes to assess a
Disaster Recovery Fee for CTI Ports and FIX DROP Ports of $50 per port,
per month.
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    \16\ The first FIX Port would be provided to each Electronic
Access Member. The term ``Electronic Access Member'' or ``EAM''
means a Member that is approved to exercise trading privileges
associated with EAM Rights. See General 1, Section 1(a)(6). Also,
the first SQF Port would be provided to each Market Maker. The term
``Market Makers'' refers to ``Competitive Market Makers'' and
``Primary Market Makers'' collectively. See Options 1, Section
1(a)(21). The term ``Competitive Market Maker'' means a Member that
is approved to exercise trading privileges associated with CMM
Rights. See Options 1, Section 1(a)(12). The term ``Primary Market
Maker'' means a Member that is approved to exercise trading
privileges associated with PMM Rights. See Options 1, Section
1(a)(35).
    \17\ The first SQF Port would be provided to each Market Maker.
The term ``Market Makers'' refers to ``Competitive Market Makers''
and ``Primary Market Makers'' collectively. See Options 1, Section
1(a)(21). The term ``Competitive Market Maker'' means a Member that
is approved to exercise trading privileges associated with CMM
Rights. See Options 1, Section 1(a)(12). The term ``Primary Market
Maker'' means a Member that is approved to exercise trading
privileges associated with PMM Rights. See Options 1, Section
1(a)(35).
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    The OTTO Port, CTI Port, FIX Port, FIX Drop Port and all Disaster
Recovery Ports \18\ are available to all Electronic Access Members, and
will be subject to a monthly cap of $7,500.
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    \18\ This includes FIX, SQF, SQF Purge, OTTO, CTI and FIX Drop
Disaster Recovery Ports.
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    The SQF Port and the SQF Purge Port are available to all Market
Makers, and will be subject to a monthly cap of $17,500.\19\
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    \19\ Only Market Makers may quote on MRX. The Exchange is
proposing non-substantive technical amendments to add commas within
the ``Production'' column of the proposed rule text to separate
terms.
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    The Exchange is not amending the Nasdaq MRX Depth of Market, Nasdaq
MRX Order Feed, Nasdaq MRX Top Quote Feed, Nasdaq MRX Trades Feed, or
Nasdaq MRX Spread Feed Ports; all of these aforementioned ports will
continue to be assessed no fees. Additionally, as is the case today,
the Disaster Recovery Ports for the Nasdaq MRX Depth of Market, Nasdaq
MRX Order Feed, Nasdaq MRX Top Quote Feed, Nasdaq MRX Trades Feed and
Nasdaq MRX Spread Feed Ports will not be assessed a fee.
Order and Quote Entry Protocols
    Only one FIX order protocol is required for an MRX Member to submit
orders into MRX and to meet its regulatory requirements.\20\ The
Exchange will provide each Electronic Access Member \21\ the first FIX
Port at no cost to submit orders into MRX. Only one account number is
necessary to transact an options business on MRX and account numbers
are available to Members at no cost.
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    \20\ MRX Members have trade-through requirements under
Regulation NMS as well as broker-dealers' best execution
obligations.
    \21\ A Market Maker would receive both a FIX Port and an SQF
Port.
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    Only one SQF quote protocol is required for an MRX Market Maker to
submit quotes into MRX and to meet its regulatory requirements.\22\ The
Exchange will provide each Market Maker the first SQF Port at no cost
to submit quotes into MRX. A quoting protocol, such as SQF, is only
required to the extent an MRX Member has been appointed as a Market
Maker in an options series pursuant to Options 2, Section 1.
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    \22\ MRX Market Makers have intra-day quoting requirements. See
Options 2, Section 5(e). Additionally, PMMs must submit a Valid
Width Quote each day to open their assigned options series. See
Options 3, Section 8(c)(1) and 8(c)(3).
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    Only MRX Members may utilize ports on MRX. Any market participant
that sends orders to a Member would not need to utilize a port. The
Member can send all orders, proprietary and agency, through one port to
MRX. Members may elect to obtain multiple account numbers to organize
their business, however only one account number and one port for orders
and one port for quotes is necessary for a Member to trade on MRX. All
other ports offered by MRX are not required for an MRX Member to meet
its regulatory obligations.
    MRX also offers an OTTO protocol.\23\ MRX Members utilizing the
first FIX Port offered at no cost do not need to purchase an OTTO Port
to meet their regulatory obligations.
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    \23\ See note 8, supra.
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    Further, while only one FIX protocol is necessary to submit orders
into MRX, Members may choose to purchase a greater number of order
entry ports, depending on that Member's business model.\24\ To the
extent that Electronic Access Members chose to utilize more than one
FIX Port, the Electronic Access Member would be assessed $650 per port,
per month, per account number for each subsequent port beyond the first
port. To the extent that Market Makers chose to utilize more than one
SQF Port, the Market Maker would be assessed $1,250 per port, per month
for each subsequent port beyond the first port. Additionally, to the
extent a Member expended more than $7,500 for FIX Ports or more than
$17,500 for SQF Ports, the Exchange would not charge an MRX Member for
additional FIX or SQF Ports, respectively, beyond the cap.
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    \24\ For example, a Member may desire to utilize multiple FIX or
OTTO Ports for accounting purposes, to measure performance, for
regulatory reasons or other determinations that are specific to that
Member.
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Other Protocols
    The Exchange's proposal to offer an SQF Purge Port \25\ for $1,250
per port, per month is not required for an MRX Member to meet its
regulatory obligations.
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    \25\ See note 7, supra.
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Disaster Recovery Ports
    With respect to Disaster Recovery Ports, the Exchange proposes to
assess no fee for the first FIX Disaster Recovery Port obtained by an
Electronic Access Member or the first SQF Disaster Recovery Port
obtained by a Market Maker. The Exchange proposes to assess no fees for
these ports to provide Members with continuous access to MRX in the
event of a failover at no cost. Electronic Access Members only require
one FIX Disaster Recovery Port to submit orders in the event of a
failover. Market Makers only require one SQF Disaster Recovery Port to
submit quotes in the event of a failover. Electronic Access Members may
elect to purchase additional FIX Disaster Recovery Ports for $50 per
port, per month, per account number. Market Makers may elect to
purchase additional SQF Disaster Recovery Ports for $50 per port, per
month, per account number. The additional FIX and SQF Disaster Recovery
Ports are not necessary to connect to the Exchange in the event of a
failover because the Exchange has provided Members with a FIX Disaster
Recovery Port and an SQF Disaster Recovery Port at no cost. Additional
FIX and SQF Disaster Recovery Ports are not necessary for an MRX Member
to meet its regulatory obligations.\26\
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    \26\ See General 2, Section 12(b).
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    The Exchange's proposal to offer Disaster Recovery Ports for SQF
Purge Ports and OTTO Ports for $50 per port, per month, per account
number and Disaster Recovery Ports for CTI Ports and FIX DROP Ports for
$50 per port, per month is not required for an MRX Member to meet its
regulatory obligations. The proposed Disaster Recovery Port fees are
intended to encourage Members to be efficient when purchasing Disaster
Recovery Ports.
    Finally, in the event that an MRX Member elects to subscribe to
multiple ports, the Exchange offers a monthly cap beyond which a Member
would be assessed no additional port fees in a given month. As noted
above, the SQF Port and the SQF Purge Port are subject to a monthly cap
of $17,500 and the

OTTO Port, CTI Port, FIX Port, FIX Drop Port and all Disaster Recovery
Ports are subject to a monthly cap of $7,500.
    These different protocols are not all necessary to conduct business
on MRX; a Member may choose among protocols based on their business
workflow. The Exchange's proposal to offer the first FIX and SQF Port
at no cost as well as the first FIX and SQF Disaster Recovery Ports at
no cost would allow MRX Members to submit orders and quotes into MRX at
no cost while meeting their regulatory obligations.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\27\ in general, and furthers the objectives of
Sections 6(b)(4) and 6(b)(5) of the Act,\28\ in particular, in that it
provides for the equitable allocation of reasonable dues, fees, and
other charges among members and issuers and other persons using any
facility, and is not designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
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    \27\ See 15 U.S.C. 78f(b).
    \28\ See 15 U.S.C. 78f(b)(4) and (5).
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    MRX proposes to amend its Pricing Schedule at Options 7, Section 6,
Ports and Other Services, to assess port fees, which were not assessed
until this year. Prior to this year, MRX did not assess its Members any
port fees. MRX launched its options market in 2016 \29\ and Members did
not pay any port fees until 2022. Of the 16 operating options
exchanges, MRX has the smallest market share at 1.37% as of November
2022.
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    \29\ The Exchange initially filed the proposed pricing changes
on May 2, 2022 (SR-MRX-2022-04) instituting fees for membership,
ports and market data. On June 29, 2022, the Exchange withdrew that
filing, and submitted separate filings for membership, ports and
market data. SR-MRX-2022-06 replaced the port fees set forth in SR-
MRX-2022-04. On July 1, 2022, SR-MRX-2022-06 was withdrawn and
replaced with SR-MRX-2022-09. On August 25, 2022, SR-MRX-2022-09 was
withdrawn and replaced with SR-MRX-2022-12. On October 11, 2022, SR-
MRX-2022-12 was withdrawn and replaced with SR-MRX-2022-20. On
December 8, 2022, SR-MRX-2022-20 was withdrawn and replaced with SR-
MRX-2022-28. The instant filing replaces SR-MRX-2022-28 which was
withdrawn on December 16, 2022.
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    The Exchange notes that, as of May 2, 2022, one MRX Member, who was
also a Market Maker, cancelled all of their ports (1 SQF Port and 1
OTTO Port) to avoid being assessed any MRX port fees.\30\ As of July 1,
2022, the Exchange did not assess MRX Members for their first SQF Port
or FIX Port. Further, in October 2022, an additional MRX Member, who is
also a Market Maker, cancelled 3 SQF Ports.\31\
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    \30\ MRX originally filed to assess a fee for all FIX Ports.
    \31\ This Member informed the Exchange that they elected to
utilize less ports in response to the current port pricing. This
Member had a total of 8 SQF Ports at the time they instructed MRX to
cancel 3 of those ports.
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Proposed Port Fees Are Reasonable, Equitable and Not Unfairly
Discriminatory
    Only one FIX order protocol is required for an MRX Member to submit
orders into MRX and to meet its regulatory requirements \32\ at no cost
while meeting its regulatory requirements. The Exchange will provide
each Electronic Access Member the first FIX Port at no cost to submit
orders into MRX. Only one account number is necessary to transact an
options business on MRX and account numbers are available to Members at
no cost.
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    \32\ MRX Members have trade-through requirements under
Regulation NMS as well as broker-dealers' best execution
obligations. See Rule 611 of Regulation NMS; 17 CFR 242.611 and
FINRA Rule 5310.
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    Only one SQF quote protocol is required for an MRX Market Maker to
submit quotes into MRX and to meet its regulatory requirements \33\ at
no cost while meeting its regulatory requirements. The Exchange will
provide each Market Maker the first SQF Port at no cost to submit
quotes into MRX. A quoting protocol, such as SQF, is only required to
the extent an MRX Member has been appointed as a Market Maker in an
options series pursuant to Options 2, Section 1.
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    \33\ MRX Members have trade-through requirements under
Regulation NMS as well as broker-dealers' best execution
obligations. MRX Market Makers have intra-day quoting requirements.
See Options 2, Section 5(e). PMMs must submit a Valid Width Quote
each day to open their assigned options series. See Options 3,
Section 8(c)(1) and 8(c)(3).
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    The Exchange proposes to offer the first FIX and SQF Port at no
cost in addition to the first FIX Disaster Recovery Port and the first
SQF Disaster Recovery Port at no cost to meet its regulatory
requirements. As noted above, Members may freely choose to rely on one
or many ports, depending on their business model.
    The Exchange's proposal is reasonable, equitable and not unfairly
discriminatory as MRX is providing MRX Electronic Access Members the
first FIX Port to submit orders and MRX Market Makers the first SQF
Port to submit quotes to MRX, at no cost, in addition to providing the
first FIX Disaster Recovery Port and the first SQF Disaster Recovery
Port at no cost. These ports, which are offered at no cost, would allow
an MRX Member to meet its regulatory requirements. All other ports
offered by MRX are not required for an MRX Member to meet its
regulatory obligations. Therefore, for the foregoing reasons, it is
reasonable to assess no fee for the first FIX Port obtained by an
Electronic Access Member or the first SQF Port obtained by a Market
Maker as an MRX Member is able to meet its regulatory requirements with
these ports.
    Further it is equitable and not unfairly discriminatory to assess
no fee for the first FIX Port to Electronic Access Members as all
Electronic Access Members would be entitled to the first FIX Port at no
cost. Also, it is equitable and not unfairly discriminatory to assess
no fee for the first SQF Port to Market Makers as all Market Makers
would be entitled to the first SQF Port at no cost. With this proposal,
MRX Members may organize their business in such a way as to submit
orders and/or quotes continuously to MRX at no cost.
    The Exchange's proposal to assess Members $650 per port, per month,
per account number for FIX Ports beyond the first port and $1,250 per
port, per month for SQF Ports beyond the first port is reasonable
because these ports are not required for a member to meet its
regulatory requirements. Members only require one FIX Port to submit
orders to MRX and one SQF Port to submit quotes to MRX. Members
electing to subscribe to more than one FIX or SQF Port are choosing the
additional ports to accommodate their business model. Additionally, to
the extent a Member expended more than $7,500 for FIX Ports or more
than $17,500 for SQF Ports, the Exchange would not charge an MRX Member
for additional FIX or SQF Ports beyond the cap. The fees for the
proposed additional FIX and SQF Ports are equitable and not unfairly
discriminatory because any Member may elect to subscribe to additional
ports. Electronic Access Members would be subject to the same fees for
FIX Ports and Market Makers would be subject to the same fees for SQF
Ports. Unlike other market participants, Market Makers are required to
provide continuous two-sided quotes on a daily basis,\34\ and are
subject to various obligations associated with providing liquidity.\35\
Also, as noted herein, account numbers are available on MRX at no cost.
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    \34\ See MRX Options 2, Section 5.
    \35\ See MRX Options 2, Section 4.
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    The Exchange's proposal to assess $650 per port, per month, per
account number for an OTTO Port is reasonable because OTTO is not
required for a

member to meet its regulatory requirements. The Exchange is offering
the first FIX Port at no cost to submit orders to MRX. In addition to
the FIX Port, all Members may elect to purchase OTTO to submit orders
to MRX. MRX Members utilizing the FIX Port, which is offered at no
cost, do not need to utilize OTTO.
    The Exchange's proposal to offer an SQF Purge Port for $1,250 per
port, per month is reasonable because this port is not required for a
member to meet its regulatory requirements. The SQF Purge Port is
designed to assist Market Makers in the management of, and risk control
over, their quotes. Market Makers may utilize a purge port to reduce
uncertainty and to manage risk by purging all quotes in their assigned
options series. The proposed SQF Purge Port is equitable and not
unfairly discriminatory because any Market Maker may elect to purchase
an SQF Purge Port and would be subject to the same fee.
    The Exchange's proposal to assess $650 per port, per month for CTI
Ports and FIX DROP Ports is reasonable because these ports are not
required for a member to meet its regulatory requirements. The proposed
CTI and FIX DROP Ports are equitable and not unfairly discriminatory
because any Member may elect to purchase an additional CTI Port or FIX
DROP Port and would be subject to the same fee.
    The Exchange's proposal to assess no fee for the first FIX Disaster
Recovery Port or the first SQF Disaster Recovery Port is reasonable
because it will provide Members with continuous access to MRX in the
event of a failover, at no cost and allow MRX Members to meet their
regulatory obligations. Further it is equitable and not unfairly
discriminatory to assess no fee for the first FIX Disaster Recovery
Port to Electronic Access Members as all Electronic Access Members
would be entitled to the first FIX Disaster Recovery Port at no cost.
Also, it is equitable and not unfairly discriminatory to assess no fee
for the first SQF Disaster Recovery Port to Market Makers as all Market
Makers would be entitled to the first SQF Disaster Recovery Port at no
cost.
    The Exchange's proposal to assess Members $50 per port, per month,
per account number for additional FIX Disaster Recovery Ports beyond
the first port offered at no cost and $50 per port, per month, per
account number for additional SQF Disaster Recovery Ports beyond the
first port at no cost is reasonable because these ports allow MRX
Members to meet their regulatory obligations. Members only require one
FIX Disaster Recovery Port to submit orders to MRX in the event of a
failover and one SQF Disaster Recovery Port to submit quotes to MRX in
the event of a failover. Additionally, to the extent a Member expended
more than $7,500 for Disaster Recovery Ports, the Exchange would not
charge an MRX Member for additional Disaster Recovery Ports beyond the
cap. The fees for the proposed additional FIX and SQF Disaster Recovery
Ports are equitable and not unfairly discriminatory because any Member
may elect additional ports and would be subject to the same fees.
    The Exchange's proposal to offer Disaster Recovery Ports for SQF
Purge Ports, and OTTO Ports at $50 per port, per month, per account
number and CTI Ports, and FIX DROP Ports for $50 per port, per month is
reasonable because these ports allow MRX Members to meet their
regulatory obligations. The proposed Disaster Recovery Port fees are
intended to encourage Members to be efficient when purchasing Disaster
Recovery Ports. The proposed Disaster Recovery Ports are equitable and
not unfairly discriminatory because any Member may elect to purchase an
additional Disaster Recovery Port and would be subject to the same fee,
depending on the port.
    Finally, in the event that an MRX Member elects to subscribe to
multiple ports, the Exchange offers a monthly cap beyond which a Member
would be assessed no additional fees for month. As noted above, the SQF
Port and the SQF Purge Port are subject to a monthly cap of $17,500 and
the OTTO Port, CTI Port, FIX Port, FIX Drop Port and all Disaster
Recovery Ports are subject to a monthly cap of $7,500. These caps are
reasonable because they allow Members to limit their fees beyond a
certain level if they elect to purchase multiple ports in a given
month. The caps are also equitable and not unfairly discriminatory
because any Member will be subject to the cap, provided they exceeded
the appropriate dollar amount in a given month.
    The proposed port fees are similar to fees assessed today by GEMX,
except that GEMX does not offer the first FIX and SQF Port at no cost,
nor does GEMX offer the first FIX Disaster Recovery Port or the first
SQF Disaster Recovery Port at no cost.\36\ By way of comparison, ISE
assessed fees for ports \37\ in 2019 while offering the same suite of
functionality as MRX, with a limited exception.\38\ Cboe \39\ port fees
are within the range of the proposed fees. While Cboe does not offer
the first order and quote entry port at no cost or Disaster Recovery
Ports at no cost, it tiers its BOE and FIX Logical ports and each
subsequent port fee is lower than MRX's port fees. MRX's FIX DROP Port
Fee is lower than Cboe's DROP Logical Port Fee.\40\ Cboe does not cap
its ports as MRX has proposed herein. BOX port fees \41\ are within the
range of the proposed fees. While BOX does not offer the first order
and quote entry port at no cost or Disaster Recovery Ports at no cost,
it tiers its FIX and SAIL port fees and each subsequent port fee is
lower than MRX's port fees, although the fees are not capped as
proposed herein. MRX's FIX DROP Port Fee is higher than BOX's Drop Copy
Port Fee.\42\ MIAX port fees \43\ are within the range of the proposed
fees. MRX MEI Port users are allocated two (2) Full Service MEI Ports
and two (2) Limited Service MEI Ports per matching engine

to which they connect.\44\ A MIAX Market Maker may request and be
allocated two (2) Purge Ports per matching engine to which it connects
via a Full Service MEI Port.\45\ MIAX assesses a Real-Time Clearing
Trade Drop Port Fee of $0.0030 per executed contract side per
month.\46\ MIAX assesses a FIX Drop Copy Port fee of $500 per month
\47\ which is lower than MRX's proposed fee. NYSE Arca port fees \48\
are within the range of the proposed fees. For each order/quote entry
port utilized, NYSE Arca Market Makers may utilize, free of charge, one
port dedicated to quote cancellation or ``quote takedown,'' which
port(s) will not be included in the count of order/quote entry ports
utilized.\49\ NYSE ARCA assesses a DROP Copy Port fee of $500 per port
per month \50\ which is lower than MRX's proposed fee.\51\
---------------------------------------------------------------------------

    \36\ See GEMX Options 7, Section 6.C. (Ports and Other
Services).
    \37\ Since 2019, ISE has assessed the following port fees: a FIX
Port Fee of $300 per port, per month, per mnemonic, an SQF Port Fee
and SQF Purge Port Fee of $1,100 per port, per month, an OTTO Port
Fee of $400 per port, per month, per mnemonic with a monthly cap of
$4,000, a CTI Port Fee and FIX DROP Port Fee of $500 per port, per
month, per mnemonic. See Securities Exchange Act Release No. 82568
(January 23, 2018), 83 FR 4086 (January 29, 2018) (SR-ISE-2018-07)
(Notice of Filing and Immediate Effectiveness of Proposed Rule
Change To Assess Fees for OTTO Port, CTI Port, FIX Port, FIX Drop
Port and Disaster Recovery Port Connectivity). Of note, ISE assessed
port fees prior to 2019 as well.
    \38\ See note 41, supra.
    \39\ Cboe assesses a fee of $750 per port up to 5 BOE/FIX
Logical Ports, and $800 per port for over 5 BOE/FIX Logical Ports.
See Cboe's Fees Schedule.
    \40\ Cboe assesses $750 for Drop Logical Ports and $850 for
Purge Ports. See Cboe's Fees Schedule.
    \41\ BOX assesses tiered FIX Port Fees as follows: $500 per port
per month for the first FIX Port, $250 per port per month for FIX
Ports 2-5 and $150 per port per month for over 5 FIX Ports. BOX
assesses $1000 per month for all SAIL Ports for Market Making and
$500 per month per port up to 5 ports for order entry and $150 per
month for each additional port. See BOX's Fee Schedule.
    \42\ BOX assesses Drop Copy Port Fees of $500 per port per month
for each month a Participant is credentialed to use a Drop Copy
Port. Drop Copy Port Fees will be capped at $2,000 per month. See
BOX's Fee Schedule.
    \43\ MIAX tiers its FIX Port fees as follows: $550 per month for
the 1st FIX Port, $350 per month per port for the FIX Ports 2
through 5 and $150 per month for over 5 FIX Ports. MIAX tiers its
MEI Port Fees and assesses fees per number of classes and as a
percentage of National Average Daily Volume. MEI Port fees range
from $5,000 to $20,500 per month. The applicable fee rate is the
lesser of either the per class basis or percentage of total national
average daily volume measurement. However, if the Market Maker's
total monthly executed volume during the relevant month is less than
0.060% of the total monthly executed volume reported by The Options
Clearing Corporation in the market maker account type for MIAX-
listed option classes for that month, then the fee will be $14,500
instead of the fee otherwise applicable. MIAX will assess monthly
MEI Port Fees on Market Makers in each month the Member has been
credentialed to use the MEI Port in the production environment and
has been assigned to quote in at least one class. See MIAX's Fee
Schedule.
    \44\ MEI Port Fees include MEI Ports at the Primary, Secondary
and Disaster Recovery data centers. MIAX Market Makers may request
additional Limited Service MEI Ports for which MIAX will assess MIAX
Market Makers $100 per month per additional Limited Service MEI Port
for each engine. See MIAX's Fee Schedule.
    \45\ For each month in which the MIAX Market Maker has been
credentialed to use Purge Ports in the production environment and
has been assigned to quote in at least one class, the Exchange will
assess the MIAX Market Maker a flat fee of $1,500 per month,
regardless of the number of Purge Ports allocated to the MIAX Market
Maker. The MEI Port Fee for a Market Maker that trades solely in
Proprietary Products is waived until December 31, 2022. See MIAX's
Fee Schedule.
    \46\ See MIAX's Fee Schedule.
    \47\ See MIAX's Fee Schedule.
    \48\ NYSE Arca assesses a tiered order/quote entry port fee of
$450 for the first 40 ports and $150 per port per month for the 41
ports or greater. For purpose of calculating the number of order/
quote entry ports and quote takedown ports, NYSE ARCA aggregates the
ports of affiliates. See NYSE Arca Options Fees and Charges.
    \49\ Any quote takedown port utilized by a NYSE Arca Market
Maker that is in excess of the number of order/quote entry ports
utilized will be counted and charged as an order/quote entry port.
See NYSE Arca Options Fees and Charges.
    \50\ Only one fee per drop copy port shall apply, even if
receiving drop copies from multiple order/quote entry ports and/or
from NYSE Arca Equities). For the backup datacenter port, no fee
shall apply if configured such that it is duplicative of another
drop copy port of the same user. See NYSE Arca Options Fees and
Charges.
    \51\ NYSE ARCA capped fees for Order/Quote Entry Ports, Quote
Takedown Ports, and Drop Copy Ports are based on the total number of
such ports an OTP Holder or OTP Firm is billed for in the month
preceding the beginning of the NYSE ARCA's migration to the Pillar
platform, during the Pillar Migration.
---------------------------------------------------------------------------

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

    The Exchange does not believe that the proposed rule change will
impose any intermarket burden on competition not necessary or
appropriate in furtherance of the purposes of the Act.
    The Exchange believes its proposal to offer the first FIX and SQF
Ports for free, as well as the first Disaster Recovery version of these
ports, permits MRX to set fees, similar to other options markets, while
continuing to allow MRX Members to meet their regulatory obligations.
MRX's offering would permit Electronic Access Members and Market Makers
the ability to submit orders and quote to MRX at no cost. The remainder
of the port offerings (additional FIX and SQF Ports, additional FIX and
SQF Disaster Recovery Ports, SQF Purge Port, OTTO Port, CTI Port, FIX
DROP Port and Disaster Recovery Ports for SQF Purge Ports, OTTO Ports,
CTI Ports, and FIX DROP Ports) are not required for MRX Members to meet
their regulatory obligations. The proposed fees do not impose an undue
burden on competition because the Exchange would uniformly assess the
port fees to all Members, as applicable, and would uniformly apply
monthly caps.
    Other markets have higher market share as compared to MRX (1.37%).
The proposed port fees are similar to port fees assessed by other
options markets as noted in this proposal as noted above.
    With respect to the higher fees assessed for SQF Ports and SQF
Purge Ports, the Exchange notes that only Market Makers may utilize
these ports. Market Makers are required to provide continuous two-sided
quotes on a daily basis,\52\ and are subject to various obligations
associated with providing liquidity.\53\ As a result of these quoting
obligations, the SQF Port and SQF Purge Port are designed to handle
higher throughput to permit Market Makers to bundle orders to meet
their obligations. The technology to permit Market Makers to submit a
greater number of quotes, in addition to the various risk protections
\54\ afforded to these market participants when quoting, accounts for
the higher SQF Port and SQF Purge Port fees.
---------------------------------------------------------------------------

    \52\ See MRX Options 2, Section 5.
    \53\ See MRX Options 2, Section 4.
    \54\ See MRX Options 3, Section 15(a)(3). Market Makers are
offered risk protections to permit them to manage their risk more
effectively.
---------------------------------------------------------------------------

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

    No written comments were either solicited or received.

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

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act.\55\ At any time within 60 days of the
filing of the proposed rule change, the Commission summarily may
temporarily suspend such rule change if it appears to the Commission
that such action is: (i) necessary or appropriate in the public
interest; (ii) for the protection of investors; or (iii) otherwise in
furtherance of the purposes of the Act. If the Commission takes such
action, the Commission shall institute proceedings to determine whether
the proposed rule should be approved or disapproved.
---------------------------------------------------------------------------

    \55\ 15 U.S.C. 78s(b)(3)(A)(ii).
---------------------------------------------------------------------------

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 email to [email protected]. Please include
File Number SR-MRX-2022-29 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-MRX-2022-29. 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 website (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 website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments

received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-MRX-2022-29 and should be submitted on
or before January 18, 2023.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\56\
---------------------------------------------------------------------------

    \56\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2022-28199 Filed 12-27-22; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 83, Number 149 (Thursday, August 2, 2018)]
[Notices]
[Pages 37864-37867]
[FR Doc No: 2018-16533]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83732; File No. SR-OCC-2017-021]

Self-Regulatory Organizations; The Options Clearing Corporation;
Notice of Filing of Partial Amendments No. 1 and 2 to Proposed Rule
Change Concerning Updates to and Formalization of OCC's Recovery and
Orderly Wind-Down Plan

July 27, 2018.
    On December 8, 2017, The Options Clearing Corporation (``OCC'')
filed with the Securities and Exchange Commission (``Commission'')
proposed rule change SR-OCC-2017-021 (``Proposed Rule Change'')
pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ concerning enhanced and new
tools for recovery scenarios.\3\ The Proposed Rule Change was published
for comment in the Federal Register on December 26, 2017.\4\ On March
22, 2018, the Commission instituted proceedings under Section
19(b)(2)(B)(i) of the Act \5\ to determine whether to approve or
disapprove the Proposed Rule Change.\6\ On June 20, 2018 the Commission
designated a longer period for Commission action on proceedings to
determine whether to approve or disapprove the Proposed Rule Change.\7\
On July 11, 2018, OCC filed Partial Amendment No. 1 to the Proposed
Rule Change. On July 13, 2018, OCC filed Partial Amendment No. 2 to the
Proposed Rule Change to supersede and replace Partial Amendment No. 1
in its entirety, due to technical defects in Partial Amendment No. 1.
Therefore, the Initial Filing, as modified by Amendment No. 2, reflects
the changes proposed.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ On December 8, 2017, OCC also filed a related advance notice
(SR-OCC-2017-810) with the Commission pursuant to Section 806(e)(1)
of Title VIII of the Dodd-Frank Wall Street Reform and Consumer
Protection Act, entitled the Payment, Clearing, and Settlement
Supervision Act of 2010 and Rule 19b-4(n)(1)(i) under the Act
(``Advance Notice''). 12 U.S.C. 5465(e)(1) and 17 CFR 240.19b-
4(n)(1)(i), respectively. The Advance Notice was published in the
Federal Register on January 23, 2018. Securities Exchange Act
Release No. 82513 (Jan. 17, 2018), 83 FR 3224 (Jan. 23, 2018) (SR-
OCC-2017-810).
    \4\ Securities Exchange Act Release No. 82352 (Dec. 19, 2017),
82 FR 61072 (Dec. 26, 2017) (SR-OCC-2017-021) (``Initial Filing'').
    \5\ 15 U.S.C. 78s(b)(2)(B)(i).
    \6\ See Securities Exchange Act Release No. 82927 (March 22,
2018), 83 FR 13176 (March 27, 2018) (SR-OCC-2018-021).
    \7\ See Securities Exchange Act Release No. 83485 (Jun. 20,
2018), 83 FR 29843 (Jun. 26, 2018) (SR-OCC-2017-021).
---------------------------------------------------------------------------

    Pursuant to Section 19(b)(1) of the Act \8\ and Rule 19b-4
thereunder \9\ the Commission is publishing notice of these Partial
Amendments No. 1 and 2 to the Proposed Rule Change as described in
Items I and II below, which Items have been prepared by OCC. The
Commission is publishing this notice to solicit comments on the
Proposed Rule Change, as modified by Amendments No. 1 and 2, from
interested persons.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(1).
    \9\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Clearing Agency's Statement of the Terms of Substance of Partial
Amendments to the Proposed Rule Change

    This Partial Amendment No. 2 would make the following three
amendments to the Initial Filing: (1) Removal of sections of the RWD
Plan concerning OCC's proposed authority to require cash settlement of
certain physically delivered options and single stock futures; (2)
updating the list of OCC's Critical Support Functions; \10\ and (3)
making three changes to Chapter 5 of the RWD Plan in order to conform
to a change contemporaneously proposed in Amendment No. 2 to OCC
proposed rule change SR-OCC-2017-020 concerning enhanced and new tools
for recovery scenarios.\11\
---------------------------------------------------------------------------

    \10\ The amendment to the list of Critical Support Functions
would be made to the confidential and redacted portions of the RWD
Plan.
    \11\ See Amendment No. 2 to SR-OCC-2017-020. The three
amendments to Chapter 5 also would be made to the confidential and
redacted portions of the RWD Plan.
---------------------------------------------------------------------------

    With regard to the removal of sections of the RWD Plan concerning
OCC's proposed authority to require cash settlement of certain
physically delivered options and single stock futures, OCC proposes to
amend the following text on pages 16 and 55-56 of the Initial Filing
(new text is underlined and proposed deletions are marked in
strikethrough text).

[GRAPHIC] [TIFF OMITTED] TN02AU18.008

    OCC also proposes to amend the following text on pages 22-23 and
61-63 of the Initial Filing (including associated footnotes).

[GRAPHIC] [TIFF OMITTED] TN02AU18.009

    OCC plans to resubmit the proposed cash settlement tool previously
filed in SR-OCC-2017-018 and SR-OCC-2017-807 on a separate timeline
from the rest of its enhanced and new tools for recovery scenarios and
would submit a subsequent filing to the Commission to amend the RWD
Plan at that time.
    In addition, OCC proposes to make the following amendments on pages
32 and 72 of the Initial Filing.
[GRAPHIC] [TIFF OMITTED] TN02AU18.010

    With regard to updating the list of OCC's Critical Support
Functions, the amendment would revise OCC's RWD Plan to consistently
identify one of OCC's internal functions as a Critical Support
Function.
    Finally, OCC proposes to make two changes to Chapter 5 of the RWD
Plan, which would align an exhibit, a related list and a related
paragraph with the certain changes OCC is contemporaneously proposing
in Amendment No. 2 to proposed rule change SR-OCC-2017-020 concerning
enhanced and new tools for recovery scenarios.\12\ Specifically, OCC
would change the aforementioned exhibit, list and paragraph in Chapter
5 to recognize that while OCC does not intend, in the first instance
for its tear-up process to serve as a means of loss allocation,
circumstances may arise such that, despite best efforts, OCC has
inadequate remaining financial resources to extinguish torn-up
positions at their assigned Tear-Up Price without forcing a reduction
in the amount of unpaid value of such positions (e.g., despite best
efforts, market movements not accounted for by monitoring, additional
Clearing Member defaults occur immediately preceding a tear-up). In
such circumstances, despite best efforts,

OCC would use its partial tear-up process as a means of loss
allocation.
---------------------------------------------------------------------------

    \12\ See Amendment No. 2 to SR-OCC-2017-020.
---------------------------------------------------------------------------

    OCC has included an updated Exhibit 5 containing its RWD Plan as
well as an Exhibit 4 showing the changes proposed in this Partial
Amendment No. 2 to the proposed rule text in the Initial Filing, with
the proposed changes in the Initial Filing marked in underlined and
strikethrough text. Exhibits 4 and 5 have been redacted and filed
separately with the Commission and confidential treatment for Exhibits
4 and 5 is requested pursuant to 17 CFR 240.24b-2.
    The partial amendment would not change the purpose of or basis for
the proposed rule change. All other representations in the Initial
Filing remain as stated therein and no other changes are being made.

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

    As the Commission stated in Securities Exchange Act Release No.
83485, the Commission shall by order approve or disapprove the proposed
rule change by August 23, 2018.\13\
---------------------------------------------------------------------------

    \13\ See Securities Exchange Act Release No. 83485 (June 20,
2018), 83 FR 29843 (June 26, 2018) (SR-OCC-2017-021).
---------------------------------------------------------------------------

III. 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 Commissions internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include
File Number SR-OCC-2017-021 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-OCC-2017-021. 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 website (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 website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of such filing also will be available for inspection
and copying at the principal office of OCC and on OCC's website at
http://www.theocc.com/about/publications/bylaws.jsp.
    All comments received will be posted without change. Persons
submitting comments are cautioned that we do not redact or edit
personal or identifying information from comment submissions. You
should submit only information that you wish to make available
publicly.
    All submissions should refer to File Number SR-OCC-2017-021 and
should be submitted on or before August 17, 2018.

    For the Commission by the Division of Trading and Markets,
pursuant to delegated authority.\14\
---------------------------------------------------------------------------

    \14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Robert W. Errett,
Deputy Secretary.
[FR Doc. 2018-16533 Filed 8-1-18; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 87, Number 120 (Thursday, June 23, 2022)]
[Rules and Regulations]
[Page 37439]
[FR Doc No: 2022-13339]

========================================================================
Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents.

========================================================================

Federal Register / Vol. 87, No. 120 / Thursday, June 23, 2022 / Rules
and Regulations

DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 165

[Docket No. USCG-2022-0239]

Safety Zones; Fireworks Displays in the Fifth Coast Guard
District

AGENCY: Coast Guard, DHS.

ACTION: Notice of enforcement of regulation.

-----------------------------------------------------------------------

SUMMARY: The Coast Guard will enforce safety zones for five fireworks
displays as described in the table to 33 CFR 165.506 on multiple dates
on and around July 4, 2022. Our regulation for marine events within the
Fifth Coast Guard District identifies the regulated areas for these
fireworks displays. During the enforcement periods, vessels may not
enter, remain in, or transit through the safety zones unless authorized
by the Captain of the Port or designated Coast Guard patrol personnel
on-scene.

DATES: The regulations in table 1 to paragraph (h)(1) to 33 CFR
165.506, will be enforced for the safety zones identified in the
SUPPLEMENTARY INFORMATION section below for the dates and times
specified.

FOR FURTHER INFORMATION CONTACT: If you have questions about this
notice of enforcement, you may call or email Petty Officer Thomas
Welker, U.S. Coast Guard, Sector Delaware Bay, Waterways Management
Division, telephone<PHONE_NUMBER>, email [email protected].

SUPPLEMENTARY INFORMATION:
    The Coast Guard will enforce the safety zones established in table
1 to paragraph (h)(1) to 33 CFR 165.506, for the following five
fireworks displays during the dates, times, and at the locations listed
in the following table:

 Dates and Times of Enforcement of Certain 33 CFR 165.506 Safety Zones for Fireworks Displays in the Coast Guard
                                   Sector Delaware Bay COTP Zone in July 2022
----------------------------------------------------------------------------------------------------------------
                Date                          Time                  Location                 Safety zone
----------------------------------------------------------------------------------------------------------------
July 1, 2022.......................  9:30 p.m. to 10:15 p.m  Delaware River,         All waters of Delaware
                                                              Philadelphia, PA;       River, adjacent to Penn's
                                                              Safety Zone.            Landing, Philadelphia, PA,
                                                                                within a 500-yard radius
                                                                                of a fireworks barge at
                                                                                approximate position
                                                                                latitude 39[deg]56'49'' N,
                                                                                longitude 075[deg]08'11''
                                                                                W.
July 4, 2022.......................  9 p.m. to 10 p.m......  Little Egg Harbor,      All waters of Little Egg
                                                              Parker Island, NJ;      Harbor within a 500-yard
                                                              Safety Zone.            radius of the fireworks
                                                                                barge in approximate
                                                                                position latitude
                                                                                39[deg]34'18'' N,
                                                                                longitude 074[deg]14'43''
                                                                                W, approximately 50 yards
                                                                                north of Parkers Island.
July 4, 2022.......................  9 p.m. to 10:30 p.m...  Delaware River,         All waters of Delaware
                                                              Philadelphia, PA;       River, adjacent to Penn's
                                                              Safety Zone.            Landing, Philadelphia, PA,
                                                                                within a 500-yard radius
                                                                                of a fireworks barge at
                                                                                approximate position
                                                                                latitude 39[deg]56'49'' N,
                                                                                longitude 075[deg]08'11''
                                                                                W.
July 4, 2022.......................  8:45 p.m. to 9:30 p.m.  Delaware Bay, Lewes,    All waters of Delaware Bay
                                                              DE; Safety Zone.        off Lewes, DE, within a
                                                                                350 yard radius of the
                                                                                barge anchored in
                                                                                approximate position
                                                                                38[deg]47'12'' N,
                                                                                075[deg]07'48'' W.
July 4, 2022 or rain date of July    9 p.m. to 10 p.m......  North Atlantic Ocean,   The waters of the North
 5, 2022.                                                     Avalon, NJ; Safety      Atlantic Ocean within a
                                                              Zone.                   500-yard radius of the
                                                                                fireworks barge in
                                                                                approximate location
                                                                                latitude 39[deg]06'19.5''
                                                                                N, longitude
                                                                                074[deg]42'02.15'' W, in
                                                                                the vicinity of the
                                                                                shoreline at Avalon, NJ.
----------------------------------------------------------------------------------------------------------------

    During the enforcement period, as reflected in Sec.  165.506(d),
vessels may not enter, remain in, or transit through the safety zone
unless authorized by the Captain of the Port or designated Coast Guard
patrol personnel on-scene.
    In addition to this notice of enforcement in the Federal Register,
the Coast Guard will provide notification of this enforcement period
via broadcast notice to mariners.

    Dated: June 16, 2022.
Jonathan D. Theel,
Captain, U.S. Coast Guard, Captain of the Port Delaware Bay.
[FR Doc. 2022-13339 Filed 6-22-22; 8:45 am]
BILLING CODE 9110-04-P


[Federal Register Volume 80, Number 130 (Wednesday, July 8, 2015)]
[Notices]
[Pages 39100-39104]
[FR Doc No: 2015-16405]

-----------------------------------------------------------------------

ENVIRONMENTAL PROTECTION AGENCY

[EPA-HQ-OPP-2015-0296; FRL-9928-54]

Notice of Receipt of Requests To Voluntarily Cancel Certain
Pesticide Registrations and Amend Registrations To Terminate Certain
Uses

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: In accordance with the Federal Insecticide, Fungicide, and
Rodenticide Act (FIFRA), EPA is issuing a notice of receipt of requests
by the registrants to voluntarily cancel their registrations of certain
products containing the pesticides carfentrazone-ethyl, chlorsulfuron,
dichlorprop-p, flufenpyr-ethyl, flutolanil, glyphosate, metsulfuron,
MGK 264, paraquat dichloride, piperonyl butoxide, propoxur, pyrethrins,
quizalofop, thifensulfuron-methyl, and tribenuron-methyl and to amend
their malathion, propoxur, and sulfur dioxide product registrations to
terminate one or more uses. The requests are to terminate the malathion
use in or on cull fruits and vegetable dumps and terminate the sulfur
dioxide use in or on grapes. The request would also terminate all
indoor aerosol, spray, and liquid formulations of propoxur, terminate
its use in food handling establishments, and terminate indoor crack and
crevice use. The requests do not seek to cancel the last carfentrazone-
ethyl, chlorsulfuron, dichlorprop-p, flutolanil, glyphosate,
metsulfuron, MGK 264, paraquat dichloride, piperonyl butoxide,
propoxur, pyrethrins, quizalofop, thifensulfuron-methyl, and
tribenuron-methyl products registered for use in the United States. The
requests, if granted, would terminate the last flufenpyr-ethyl products
registered in the United States. EPA intends to grant these requests at
the close of the comment period for this announcement unless the Agency
receives substantive comments within the comment period that would
merit its further review of these requests, or unless the registrants
withdraw their requests. If these requests are granted, any sale,
distribution, or use of products listed in this notice will be
permitted after the affected registrations have been

cancelled or uses terminated only if such sale, distribution, or use is
consistent with the terms described in the final cancellation order.

DATES: Comments must be received on or before August 7, 2015.

ADDRESSES: Submit your comments, identified by docket identification
(ID) number EPA-HQ-OPP-2015-0296, 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: Khue Nguyen, 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 action is directed to the public in general, and may be of
interest to a wide range of stakeholders including environmental, human
health, and agricultural advocates; the chemical industry; pesticide
users; and members of the public interested in the sale, distribution,
or use of pesticides. Since others also may be interested, the Agency
has not attempted to 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.

II. Background on the Receipt of Requests to Cancel and/or Amend
Registrations to Terminate Uses

    This notice announces receipt by EPA of requests from Syngenta Crop
Protection, FMC Corporation, E. I. DuPont de Nemours and Company,
Helena Chemical Company, Wellmark International, Ritter Chemical,
Valent USA Corporation, Nufarm Americas, Nichino America, and Airgas
USA to cancel certain product registrations and amend registrations to
terminate certain uses of certain product registrations.
    Carfentrazone-ethyl is a post-emergent herbicide registered for use
to control broadleaf weeds in various agricultural crops, turf, aquatic
areas, and industrial and utility sites. Paraquat dichloride is an
herbicide registered to control weeds and grasses and as a desiccant/
harvest aid in many agricultural and non-agricultural areas, including
in/on vegetables, grains, cotton, grasses, fruit crops, trees, vines,
and commercial buildings. In a letter to EPA dated January 6, 2015,
Syngenta Crop Protection requested the cancellation of one product
registration containing paraquat dichloride and one product
registration containing both carfentrazone-ethyl and paraquat
dichloride identified in Table 1 of Unit III. This request will not
terminate the last carfentrazone-ethyl or paraquat dichloride products
registered in the United States.
    Chlorsulfuron is a pre- and post-emergent herbicide registered for
use to control a variety of weeds on cereal grains, pasture and
rangeland, industrial sites, and turf grass. In a letter to EPA dated
April 20, 2015, E. I. DuPont de Nemours and Company requested that EPA
cancel one product registration containing chlorsulfuron identified in
Table 1 of Unit III. DuPont noted that it no longer sells or markets
this registration and there were no existing stocks in the channels of
trade, and therefore no existing stocks provision is requested. This
request will not terminate the last chlorsulfuron pesticide products
registered in the United States.
    Dichlorprop-p is an herbicide registered for use to kill annual and
perennial broadleaf weeds on ornamental lawns, recreational turf,
sports fields, sod farms, roadsides, industrial sites, rights-of-ways,
and forests. In a letter to EPA dated February 27, 2015, Nufarm
Americas, Inc., requested that EPA cancel two product registrations
containing dichlorprop-p identified in Table 1 of Unit III. This
request will not terminate the last dichlorprop-p pesticide products
registered in the United States.
    Flufenpyr-ethyl is an herbicide registered for post-emergence
control of broadleaf weeds in field corn, soybeans, and sugarcane. In a
letter to EPA dated March 19, 2015, Valent USA Corporation requested
that EPA cancel two product registrations containing flufenpyr-ethyl
identified in Table 1 of Unit III because Valent no longer wished to
support this active ingredient. Valent noted in an email to EPA dated
April 24, 2015, that these product registrations were never
manufactured and there were no existing stocks in the channels of
trade, therefore no existing stocks provision is requested. This
request will terminate the last flufenpyr-ethyl pesticide products in
the United States.
    Flutolanil is a systemic fungicide registered for use to control
fungal diseases in certain food crops, including peanuts, potatoes, and
rice and non-food sites such as turf, greenhouses, and ornamentals. In
a letter to EPA dated March 31, 2015, Nichino America requested the
cancellation of one Special Local Need (SLN) product registration
identified in Table 1 of Unit III. Nichino requested cancellation of
this registration because it was replaced by a more recently
registered, identical SLN product under another registration number.
This request will not terminate the last flutolanil pesticide products
in the United States.
    Glyphosate is a non-selective herbicide registered for use on many
food and non-food crops as well as in non-crop areas. In a letter to
EPA dated December 12, 2014, Ritter Chemical requested the cancellation
of three products containing glyphosate identified in Table 1 of Unit
III. This request will not terminate the last glyphosate products
registered in the United States.
    Malathion is a broad-spectrum organophosphate insecticide
registered for use on various food and feed crops and in various non-
agricultural settings including residential outdoor settings,

ornamental nursery stock, building perimeters, pastures and rangeland,
and as part of regional pest eradication programs. In a letter to EPA
dated April 14, 2015, Helena Chemical Company requested to amend its
registration to terminate a use from a pesticide product registration
identified in Table 2 of Unit III. Specifically, Helena requested
amendment to terminate use on cull fruits and vegetable dumps because
it no longer wished to support this use. This request will not
terminate the last malathion products registered in the United States
for these uses.
    Metsulfuron is a sulfonylurea herbicide registered for use to
control annual and perennial broadleaf weeds in certain agricultural,
non-crop, and industrial areas, pasture and rangeland, turf, forestry,
and marshes and wetland areas. Thifensulfuron-methyl and tribenuron-
methyl are sulfonylurea herbicides registered for use on cereal grains,
oilseed crops, soybeans, and cotton to control broadleaf weeds. In a
letter to EPA dated April 20, 2015, E. I. DuPont de Nemours and Company
requested the cancellation of one product containing metsulfuron,
thifensulfuron-methyl, and tribenuron-methyl identified in Table 1 of
Unit III. DuPont noted that it no longer sells or markets this
registration and there were no existing stocks in the channels of
trade, and therefore no existing stocks provision is requested. This
request will not terminate the last metsulfuron, thifensulfuron-methyl,
and tribenuron-methyl pesticide products registered in the United
States.
    Propoxur and pyrethrins are insecticides registered for use by pest
control operators to kill a variety of insects including crickets,
ants, cockroaches, silverfish and other pests. MGK 264 and piperonyl
butoxide are insecticide synergists, which are designed to enhance the
toxicity of other pesticides. These chemicals are registered for use in
and around industrial, institutional, commercial (including food
handling establishments and food processing plants), and residential
facilities. In a letter to EPA dated February 6, 2015, Wellmark
International requested that EPA cancel the propoxur, pyrethrins, MGK
264, and piperonyl butoxide pesticide product identified in Table 1 of
Unit III. In a separate letter, dated February 6, 2015, Wellmark
International requested to amend the propoxur, pyrethrins, MGK 264, and
piperonyl butoxide pesticide product registrations identified in Table
2 of Unit III to terminate certain uses and certain formulation types.
Specifically, Wellmark International requested that the following uses
and formulations be terminated: All indoor aerosol, spray, and liquid
formulations of propoxur; its use in food handling establishments; and
indoor crack and crevice use. Wellmark International's requests will
not terminate the last propoxur, pyrethrins, MGK 264, or piperonyl
butoxide products registered in the United States, or the last
propoxur, pyrethrins, MGK 264, or piperonyl butoxide pesticide products
registered in the United States for these formulations or uses.
    Quizalofop is a systemic herbicide registered for use to control
annual and perennial weeds in various food/feed and non-food/non-feed
crops. Food and feed uses include grains, legumes, cotton, garlic,
soybean, and sugar beets. Non-food, non-feed uses include cottonwood
and poplar plantations and uncultivated areas such as fencerows,
roadsides, and paved areas. In a letter to EPA dated May 15, 2015, FMC
Corporation requested the cancellation of one quizalofop product
identified in Table 1 of Unit III. This request will not terminate the
last quizalofop products registered in the United States.
    Sulfur dioxide is a fungicide registered for use to control fungal
disease on grapes. Sulfur dioxide products are formulated as a
compressed liquid that converts to gas upon release and is registered
for use in cold-storage warehouses, trucks, vans, and train cars for
post-harvest grape fumigation. In a letter to EPA dated April 13, 2015,
Airgas USA requested to amend its registration to terminate the use on
grapes for the pesticide product registration identified in Table 2 of
Unit III. Airgas no longer wished to support use on grapes. This
request will not terminate the last sulfur dioxide products registered
in the United States for this use.

III. What action is the agency taking?

    This notice announces receipt by EPA of requests from registrants
to cancel certain product registrations of carfentrazone-ethyl,
chlorsulfuron, dichlorprop-p, flufenpyr-ethyl, flutolanil, glyphosate,
metsulfuron, paraquat dichloride, propoxur, quizalofop, thifensulfuron-
methyl, and tribenuron-methyl and terminate certain uses of malathion,
propoxur, and sulfur dioxide product registrations. The affected
products and the registrants making the requests are identified in
Tables 1-3 of this unit.
    Unless a request is withdrawn by the registrant or if the Agency
determines that there are substantive comments that warrant further
review of these requests, EPA intends to issue an order canceling the
affected registrations and amending to terminate certain uses the
affected registrations for which the Agency received use termination
requests.

 Table 1--Carfentrazone-ethyl, Chlorsulfuron, Dichlorprop-p, Flufenpyr-
      ethyl, Flutolanil, Glyphosate, Metsulfuron, MGK 264, Paraquat
    Dichloride, Piperonyl butoxide, Propoxur, Pyrethrins, Quizalofop,
 Thifensulfuron-methyl, and Tribenuron-methyl Product Registrations With
                        Requests for Cancellation
------------------------------------------------------------------------
       Registration number           Product name        Chemical name
------------------------------------------------------------------------
100-1217........................  Gramoxone Inteon..  Paraquat
                                                       dichloride.
100-1316........................  Cyclone Star......  Carfentrazone-
                                                       ethyl, paraquat
                                                       dichloride.
279-3183........................  Matador Herbicide.  Quizalofop-p-
                                                       ethyl.
352-522 \a\.....................  DuPont Glean        Chlorsulfuron.
                                   Fertilizer
                                   Compatible
                                   Herbicide.
352-586 \a\.....................  DuPont Canvas       Metsulfuron,
                                   Herbicide.          thifensulfuron,
                                                       tribenuron-
                                                       methyl.
2724-819........................  Pyrocide            Propoxur,
                                   Pressurized Ant &   pyrethrins,
                                   Roach Spray.        piperonyl
                                                       butoxide, MGK
                                                       264.
9468-33.........................  Kull 41 S.........  Glyphosate.
9468-34.........................  Kull 62 MUP.......  Glyphosate.
9468-35.........................  Kull TGAI           Glyphosate.
                                   Glyphosate.
59639-109 \a\...................  Flufenpyr-ethyl     Flufenpyr-ethyl.
                                   Technical.
59639-110 \a\...................  S-3153 WDG          Flufenpyr-ethyl.
                                   Herbicide.
70596-6.........................  Dichlorprop-p       Dichlorprop-p.
                                   Technical.
70596-13........................  Dichlorprop-p       Dichlorprop-p.
                                   (Technical Grade).

NV020006........................  Moncut 70-DF......  Flutolanil.
------------------------------------------------------------------------
\a\ There are no existing stocks of these product registrations and no
  requests for existing stocks provisions. Therefore no existing stocks
  provision will be provided for these product registrations.

 Table 2--Malathion, Propoxur, and Sulfur Dioxide Product Registrations With Requests for Amendment To Terminate
                                                One or More Uses
----------------------------------------------------------------------------------------------------------------
        Registration number               Product name            Chemical name         Uses to be terminated
----------------------------------------------------------------------------------------------------------------
2724-818...........................  Pyrocide Intermediate   Propoxur, MGK 264,      Indoor aerosol, spray, and
                                      7045.                   piperonyl butoxide,     liquid formulations; use
                                                              pyrethrins.             in food handling
                                                                                establishments and indoor
                                                                                crack and crevice use.
2724-820...........................  Propoxur Technical      Propoxur..............  Indoor aerosol, spray, and
                                      Insecticide.                                    liquid formulations; use
                                                                                in food handling
                                                                                establishments and indoor
                                                                                crack and crevice use.
2724-821...........................  Propoxur 70%            Propoxur..............  Indoor aerosol, spray, and
                                      Concentrate.                                    liquid formulations; use
                                                                                in food handling
                                                                                establishments and indoor
                                                                                crack and crevice use.
5905-250...........................  Fyfanon 8 lb. Emulsion  Malathion.............  Cull fruits and vegetable
                                                                                dumps.
89867-2............................  Airgas Sulfur Dioxide.  Sulfur dioxide........  Grapes.
----------------------------------------------------------------------------------------------------------------

    Table 3 of this unit includes the names and addresses of record for
the registrants of the products listed in Table 1 and Table 2 of this
unit, in sequence by EPA company number. This number corresponds to the
first part of the EPA registration numbers of the products listed in
Table 1 and Table 2 of this unit.

Table 3--Registrants Requesting Voluntary Cancellation and/or Amendments
------------------------------------------------------------------------
      EPA Company number                Company name and address
------------------------------------------------------------------------
100..........................  Syngenta Crop Protection, LLC, P.O. Box
                                18300, Greensboro, NC 27419.
279..........................  FMC Corporation, 1735 Market Street,
                                Philadelphia, PA 19103.
352..........................  E.I. DuPont de Nemours and Company, 1007
                                Market St., Wilmington, DE 19898.
5905.........................  Helena Chemical Company, 7664 Smythe Farm
                                Road, Memphis, TN 38120.
2724.........................  Wellmark International, 1501 E. Woodfield
                                Road, Suite 200, West Schaumburg, IL
                                60173.
9468.........................  Ritter Chemical, LLC, 9300 Baythorne Dr.,
                                Houston, TX 77041.
59639........................  Valent USA Corporation, 1600 Riviera
                                Avenue, Suite 200, Walnut Creek, CA
                                94596.
70596........................  Nufarm Americas, Inc., 4020 Aerial Center
                                Parkway, Suite 101, Morrisville, NC
                                27560.
71711........................  Nichino America, Inc., 4550 New Linden
                                Hill Road, Suite 501, Wilmington, DE
                                19808.
89867........................  Airgas USA, LLC, 7217 Lancaster Pike,
                                Suite A, P.O. Box 640, Hockessin, DE
                                19707.
------------------------------------------------------------------------

IV. What is the agency's authority for taking this action?

    Section 6(f)(1) of FIFRA (7 U.S.C. 136d(f)(1)) provides that a
registrant of a pesticide product may at any time request that any of
its pesticide registrations be canceled or amended to terminate one or
more uses. FIFRA further provides that, before acting on the request,
EPA must publish a notice of receipt of any such request in the Federal
Register.
    Section 6(f)(1)(B) of FIFRA (7 U.S.C. 136d(f)(1)(B)) requires that
before acting on a request for voluntary cancellation, EPA must provide
a 30-day public comment period on the request for voluntary
cancellation or use termination. In addition, FIFRA section 6(f)(1)(C)
(7 U.S.C. 136d(f)(1)(C)) requires that EPA provide a 180-day comment
period on a request for voluntary cancellation or termination of any
minor agricultural use before granting the request, unless:
    1. The registrants request a waiver of the comment period, or
    2. The EPA Administrator determines that continued use of the
pesticide would pose an unreasonable adverse effect on the environment.
    The carfentrazone-ethyl, chlorsulfuron, dichlorprop-p, flufenpyr-
ethyl, flutolanil, glyphosate, malathion, metsulfuron, paraquat
dichloride, quizalofop, sulfur dioxide, thifensulfuron-methyl,
tribenuron-methyl registrants have requested that EPA waive the 180-day
comment period. Accordingly, EPA will provide a 30-day comment period
on the proposed product cancellations and use terminations. Because
propoxur is not registered for any minor agricultural uses, this 180-
day comment provision does not apply, and EPA is providing a 30-day
comment period on the proposed propoxur product cancellations and use
terminations.

V. Procedures for Withdrawal of Requests

    Registrants who choose to withdraw a request for product
cancellation or use termination should submit the withdrawal in writing
to the person listed under FOR FURTHER INFORMATION CONTACT. If the
products have been subject to a previous cancellation action, the
effective date of cancellation and all other provisions of any earlier
cancellation action are controlling.

VI. Provisions for Disposition of Existing Stocks

    Existing stocks are those stocks of registered pesticide products
that are currently in the United States and that were packaged,
labeled, and released for shipment prior to the effective date of the
action. If the requests for voluntary cancellation and amendments to
terminate uses are granted, the Agency intends to publish the
cancellation order in the Federal Register.
    In any order issued in response to these requests for cancellation
of product registrations and for amendments to terminate uses, EPA
proposes to include the following provisions for the treatment of any
existing stocks of the products listed in Tables 1 and 2 of Unit III.

A. For Products 352-522, 352-586, and 59639-109 Identified in Table 1
of Unit III

    The registrants reported to the Agency via written correspondence
that there are no existing stocks of EPA registration numbers 352-522,
352-586, and 59639-109. Therefore, no existing stocks provision was
requested by or is needed for these registrants. The registrants will
be prohibited from selling or distributing these products upon
cancellation of these products, except for export consistent with FIFRA
section 17 (7 U.S.C. 136o) or for proper disposal.
    Persons other than registrants will generally be allowed to sell,
distribute, or use existing stocks of the affected products until such
stocks are exhausted, provided that such sale, distribution, or use is
consistent with the terms of the previously approved labeling on, or
that accompanied, the canceled product.

B. For All Other Products Identified in Table 1 of Unit III

    For the other voluntary product cancellations noted in Table 1 of
Unit III, the registrants will be permitted to sell and distribute
existing stocks of voluntarily canceled products for 1 year after the
effective date of the cancellation, which will be the date of
publication of the cancellation order in the Federal Register.
Thereafter, registrants will be prohibited from selling or distributing
the products identified in Table 1 of Unit III., except for export
consistent with FIFRA section 17 (7 U.S.C. 136o) or for proper
disposal.
    Persons other than the registrant may sell, distribute, or use
existing stocks of the affected canceled products until supplies are
exhausted, provided that such sale, distribution, or use is consistent
with the terms of the previously approved labeling on, or that
accompanied, the canceled products.

C. For All Products Identified in Table 2 of Unit III

    Once EPA has approved product labels reflecting the requested
amendments to terminate uses for the products identified in Table 2 of
Unit III, registrants will be permitted to sell or distribute products
under the previously approved labeling for a period of 18 months after
the date of Federal Register publication of the cancellation order,
unless other restrictions have been imposed. Thereafter, registrants
will be prohibited from selling or distributing the products whose
labels include the terminated uses identified in Table 2 of Unit III.,
except for export consistent with FIFRA section 17 or for proper
disposal.
    Persons other than the registrant may sell, distribute, or use
existing stocks of the products whose labels include the terminated
uses until supplies are exhausted, provided that such sale,
distribution, or use is consistent with the terms of the previously
approved labeling on, or that accompanied, the products with the
terminated uses.

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

    Dated: June 29, 2015.
Richard P. Keigwin, Jr.,
Director, Pesticide Re-Evaluation Division, Office of Pesticide
Programs.
[FR Doc. 2015-16405 Filed 7-1-15; 8:45 am]
BILLING CODE 6560-50-P