[Federal Register Volume 86, Number 142 (Wednesday, July 28, 2021)]
[Notices]
[Pages 40667-40671]
[FR Doc No: 2021-15991]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-92466; File No. SR-NASDAQ-2021-040]

Self-Regulatory Organizations; The Nasdaq Stock Market LLC;
Notice of Filing of Proposed Rule Change To Establish the ``Extended
Trading Close'' and a New ``Extended Trading Close'' Order Type

July 22, 2021.
    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 July 12, 2021, The Nasdaq Stock Market LLC (``Nasdaq'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II 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.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to amend Equity 4, Rule 4702 and Rule 4703,
and add Rule 4755, to establish the ``Extended Trading Close'' and new
``ETC Eligible LOC'' and ``Extended Trading Close'' Order Types, as is
described further below.
    The text of the proposed rule change is available on the Exchange's
website at https://listingcenter.nasdaq.com/rulebook/nasdaq/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
    The Exchange proposes to adopt new Equity 4, Rule 4755 \3\ to
establish the ``Extended Trading Close.'' The Extended Trading Close
will allow Participants an additional opportunity to access liquidity
in Nasdaq-listed securities at the Nasdaq Official Closing Price for a
limited period of time after the Nasdaq Closing Cross \4\ or the LULD
Closing Cross,\5\ (collectively, the ``Closing Cross'') concludes. The
Exchange also proposes to amend Rule 4702 and Rule 4703 to establish
new ``ETC Eligible LOC'' and ``Extended Trading Close'' Order Types
that may

participate in the Extended Trading Close.
---------------------------------------------------------------------------

    \3\ References herein to Nasdaq Rules in the 4000 Series shall
mean Rules in Nasdaq Equity 4.
    \4\ The ``Nasdaq Closing Cross'' refers to Nasdaq's process for
determining the price at which it will execute orders at the close
and for executing those orders, as set forth in Rule 4754.
    \5\ The ``LULD Closing Cross'' refers to Nasdaq's modified
process for determining the price at which it will execute orders at
the close, following a Trading Pause, as set forth in Rule 4120(a),
which exists at or after 3:50 p.m. and before 4:00 p.m., as well as
the process for executing those orders, as set forth in Rule
4754(b)(6).
---------------------------------------------------------------------------

Extended Trading Close
    As defined in proposed new Rule 4755(a)(5), the Extended Trading
Close will be the process, described in new Rule 4755, during which ETC
Eligible Orders \6\ may match and execute at the Nasdaq Official
Closing Price, as determined by the Closing Cross, for a five minute
period immediately following the Closing Cross.
---------------------------------------------------------------------------

    \6\ As discussed below, the Exchange proposes to define, in Rule
4755, an ``ETC Eligible Order(s)'' as an ``ETC Order(s)'' or an
``ETC Eligible LOC Order(s).''
---------------------------------------------------------------------------

    The Extended Trading Close will commence immediately upon the
conclusion of the Closing Cross and it will continue until 4:05 p.m. ET
on a regular trading day, or 1:05 p.m. ET on a day when Nasdaq closes
early.\7\ The Extended Trading Close will not occur for a security on
any day when insufficient interest exists in the System to conduct the
Closing Cross for that security or when the Exchange invokes
contingency procedures due to a disruption that prevents execution of
the Closing Cross.\8\ Likewise, the Exchange will cancel executions in
a security that occur in the Extended Trading Close to the extent that
the Exchange nullifies the Closing Cross in that security pursuant to
the rules governing clearly erroneous transactions, as set forth in
Rule 11890.
---------------------------------------------------------------------------

    \7\ The starting times for the Extended Trading Close are not
exact insofar as the Closing Cross is not instantaneous and the
System requires a brief period of time to complete the Closing Cross
for each security. Typically, the processing of the Closing Cross
begins at 4:00 p.m. ET, or at 1:00 p.m. ET on days when Nasdaq
closes early.
    \8\ See Rule 4754(b)(7).
---------------------------------------------------------------------------

    On a continuous basis during the Extended Trading Close, the System
will match orders in Nasdaq-listed securities \9\ and execute them at
the Nasdaq Official Closing price (as determined by the Closing Cross),
unless the last sale price during After Hours Trading,\10\ or the best
After Hours Trading bid (offer) price, of a Nasdaq-listed security
subject to an order participating in the Extended Trading Close is
higher (lower) than the Nasdaq Official Closing Price by the greater of
0.5% or $0.01, in which case the System will suspend executions of
matched orders in the Extended Trading Close for that security unless
or until the After Hours Trading last sale prices or best After Hours
Trading bid (offer) price of the security returns to within the greater
of the 0.5%/$0.01 thresholds prior to the conclusion of the Extended
Trading Close (at which point executions would resume). This limitation
will help to mitigate the risk that orders in Nasdaq-listed securities
which participate in the Extended Trading Close will execute at a price
that is no longer reflective of the value of the security. (From time
to time, Nasdaq management may modify the 0.5%/$0.01 thresholds
described above upon prior notice to market Participants.) Furthermore,
the Exchange proposes that at any time during the Extended Trading
Close, Participants are free to modify or cancel their ETC Eligible
Orders if the thresholds that the Exchange proposes do not meet their
needs or if they wish to do so based on movements in After Hours
Trading prices. For example, after the Closing Cross occurs, an issuer
may release material news about a company that causes its After Hours
Trading price for its stock to vary significantly from the Closing
Cross Price. In that instance, a Participant may no longer wish to
participate in the Extended Trading Close and receive the Nasdaq
Official Closing price for an ETC Eligible Order in that stock;
accordingly, the Participant may cancel its ETC Eligible Order, to the
extent that the Order has not already been fully matched and executed,
and place an order for the stock in the After Hours market.
Nonetheless, as stated previously, a significant move in the price of a
security in After Hours Trading will result in suspension of the
Extended Trading Close.
---------------------------------------------------------------------------

    \9\ Only orders in Nasdaq-listed securities will be eligible to
participate in the Extended Trading Close. The Exchange proposes to
exclude securities listed on other primary listing markets. As a
primary listing market, Nasdaq is committed to investing in and
enhancing the Closing Cross process for Nasdaq-listed issuers, their
shareholders, investors, and all Participants involved in the robust
price discovery and liquidity process that the Closing Cross serves.
Moreover, Nasdaq notes that the vast majority of Participants
looking to trade at the closing price participate in the primary
listing market's closing auction and do not route orders to non-
primary market listing destinations.
    \10\ For purposes of this proposal, the term ``After Hours
Trading'' refers to trading in a Nasdaq-listed security that
commences immediately following the conclusion of the Nasdaq Closing
Cross or the LULD Closing Cross, during Post-Market Hours, as that
term is defined in Equity 1, Section 1(a)(9).
---------------------------------------------------------------------------

    The Exchange proposes to cancel any portion of an ETC Eligible
Order that remains unexecuted at the conclusion of the Extended Trading
Close, or for which the System has suspended execution, due to price
deviation, where that suspension remains active as of the conclusion of
the Extended Trading Close.
    All ETC Eligible Orders executed in the Extended Trading Close will
be trade reported anonymously and disseminated via the consolidated
tape.
Order Types Eligible To Participate in the Extended Trading Close
    The Exchange proposes to allow two Order Types to participate in
the Extended Trading Close: (1) Limit-on-Close (``LOC'') Orders; and
(2) Extended Trading Close (``ETC'') Orders.\11\
---------------------------------------------------------------------------

    \11\ If short sale orders in securities subject to Regulation
SHO are permitted to execute in the Closing Cross, then the System
will also permit short sale executions in such securities to occur
in the Extended Trading Close. Conversely, the System will reject
short sale orders in securities if short sale orders in such
securities were not permitted to execute in the Closing Cross.
---------------------------------------------------------------------------

ETC Eligible LOC Orders
    First, the Exchange proposes to amend Rule 4702(b)(12) to provide
for LOC Orders in Nasdaq-listed securities to participate in the
Extended Trading Close to the extent that such LOC Orders are entered
through RASH or FIX and remain unexecuted, in whole or part, in the
Closing Cross (an ``ETC Eligible LOC Order'').\12\ The System will not
include LOC Orders in the Extended Trading Close that Participants did
not duly submit prior to the Nasdaq Closing Cross or LULD Closing
Cross, in accordance with Rule 4702(b)(12)(A), or which are
unexecutable in the Extended Trading Close due to the fact that they
have limit prices that fall outside of the Nasdaq Official Closing
Price.\13\
---------------------------------------------------------------------------

    \12\ By default, all LOC Orders in Nasdaq-listed securities will
be set to participate in the Extended Trading Close in the event
that the LOC Orders are not fully executed during the Closing Cross.
However, a Participant may opt to exclude its LOC Orders from
participating in the Extended Trading Close. When ETC eligibility is
disabled, the System will simply cancel LOC Orders in Nasdaq-listed
securities that remain unexecuted after the Closing Cross occurs.
Also, if Participants select a time-in-force for their LOC Orders in
Nasdaq-listed securities that continues after the Closing Cross
occurs, then if such LOC Orders remain unexecuted after the Closing
Cross, the Exchange will cause the remaining unexecuted shares to
bypass the Extended Trading Close and participate in After Hours
Trading.
    \13\ A Post-Only Order, Midpoint Peg Post-Only Order,
Supplemental Order, or Market Maker Peg Order may not operate as an
ETC Eligible LOC Order, insofar as their respective underlying order
characteristics are incompatible with participation in the ETC. An
ETC Eligible LOC Order will be rejected if it has been assigned a
Pegging Attribute due to the fact that the Pegging Order Attribute
operates only during Market Hours.
---------------------------------------------------------------------------

    ETC Eligible LOC Orders will match and execute in the Extended
Trading Close in time priority against other ETC Eligible LOC Orders
and ETC Orders, with ETC Eligible LOC Orders receiving new timestamps
upon entry into the Extended Trading Close and prioritized amongst each
other and ETC orders based on the time the system received each order
into the Extended Trading Close. For example, assume that the Closing
Cross Price for a security is $10.00 per share and that an ETC

Eligible LOC Order to buy 100 shares (Order 1) remains unexecuted as of
the conclusion of the Closing Cross, such that it will be re-entered
for participation in the ETC, receiving a new timestamp. When the ETC
commences, the NBBO is $9.95 x $10.05. After the ETC begins, a second
Participant enters Order 2, an ETC Order to buy 2,000 shares, with a
minimum quantity condition of 500 shares. A third Participant then
enters Order 3, an ETC Order to buy 500 shares. A fourth Participant
then enters Order 4, an ETC Order to sell 200 shares. Order 4 will then
execute against Orders 1 and 3 for 200 shares at $10.00 per share
(Order 1 is fully executed and Order 3 has 400 shares remaining). Order
4 does not execute against Order 2 because Order 4 does not satisfy the
minimum quantity condition of Order 2. A fifth Participant enters Order
5, which is an ETC Order to sell 500 shares. Order 5 will then execute
against Order 2 for 500 shares at $10.00 per share, as Order 5
satisfies the minimum quantity condition of Order 2. Finally, a sixth
Participant enters Order 6, an ETC order to sell 3,000 shares, with a
minimum quantity condition of 3,000 shares. Order 6 posts as no resting
ETC Eligible LOC Orders or ETC Orders satisfies the Order's minimum
quantity condition.
    As discussed above, during the Extended Trading Close, ETC Eligible
LOC Orders will continuously match against other ETC Eligible LOC
Orders and ETC Orders and execute at the Nasdaq Official Closing price,
as determined by the Closing Cross, except that the System will suspend
executions of ETC Eligible LOC Orders whenever the After Hours Trading
last sale price or the best After Hours Trading bid or offer of the
Nasdaq-listed securities that are subject to the ETC Eligible LOC
Orders deviate the greater of 0.5% or $0.01 from the Nasdaq Official
Closing Prices for those securities. (From time to time, Nasdaq
management may modify these thresholds upon notice to market
Participants.) The System will resume executions during the Extended
Trading Close if and when the After Hours Trading last sale price or
the After Hours Trading best bid (offer) price of the Nasdaq-listed
security returns to within these 0.5%/$0.01 thresholds (or within such
other thresholds as Nasdaq management may determine, upon prior notice
to market Participants). When the Extended Trading Close ends, the
System will cancel any unexecuted shares of ETC Eligible LOC Orders as
well as any shares of ETC Eligible LOC Orders for which executions
remain suspended as of that time, due to price deviations. A
Participant may modify or cancel an ETC Eligible LOC Order (unless
already executed) at any time during the Extended Trading Close.
ETC Orders
    In addition to ETC Eligible LOC Orders, Nasdaq proposes to
introduce a new Order Type--the Extended Trading Close or ``ETC''
Order--that will be eligible for entry and execution exclusively during
the Extended Trading Close.14 15
---------------------------------------------------------------------------

    \14\ On any day when no Extended Trading Close occurs, i.e., if
there is insufficient interest to conduct a Closing Cross for a
security or if the Exchange invokes contingency procedures, the
System will not accept entry of an ETC Order.
    \15\ The Exchange proposes to amend Rule 4703(a) to add a new
time-in-force applicable to ETC Orders. A time-in-force of ``ETC''
will mean that an order is designated to activate upon commencement
of the Extended Trading Close and deactivate upon the conclusion of
the Extended Trading Close.
---------------------------------------------------------------------------

    Like an ETC Eligible LOC Order, an ETC Order must be in a Nasdaq-
listed security, and the Exchange will execute it at the Nasdaq
Official Closing Price, as determined by the Closing Cross. A
Participant may enter, cancel, or modify an ETC Order at any time
during the Extended Trading Close. The System will execute an ETC Order
only if the System is able to match it against another ETC Order or an
ETC Eligible LOC Order during the Extended Trading Close. Moreover, as
noted above, if during the Extended Trading Close, the After Hours
Trading last sale price or After Hours Trading best bid or offer of the
Nasdaq-listed security subject to the ETC Order deviates the greater of
0.5% or $0.01 from the Nasdaq Official Closing Price for that security,
as determined by the Closing Cross, then the System will suspend
execution of the ETC Order, unless and until the After Hours Trading
last sale price or the After Hours Trading best bid (offer) price of
the Nasdaq-listed security returns to within these 0.5%/$0.01
thresholds (or within such other thresholds as Nasdaq management may
determine, upon prior notice to market Participants) during the
Extended Trading Cross (at which point executions would resume). If an
ETC Order remains unmatched or its execution remains suspended when the
Extended Trading Close concludes, then the System will cancel the ETC
Order.
    The System will match an ETC Order in time priority amongst other
ETC Eligible LOC Orders and ETC Orders during the Extended Trading
Close. Participants may modify or cancel unexecuted ETC Orders at any
time after entry. A Participant may enter an ETC Order with a Minimum
Quantity Attribute.\16\
---------------------------------------------------------------------------

    \16\ Rule 4703(e) provides for two types of Minimum Quantity
Attributes--one that provides for the minimum quantity requirement
to be satisfied by a single order, and a second that allows for it
to be satisfied by aggregating multiple orders. Only the first type
of Minimum Quantity Attributes may be used with an ETC Order. Thus,
a Participant that enters an ETC Order with a minimum quantity
requirement of 500 shares may specify that its order match and
execute in the ETC against another ETC Eligible Order of 500 shares
but not several ETC Eligible Orders of smaller sizes that, in
aggregate, add up to 500 shares.
---------------------------------------------------------------------------

The ETC Order Imbalance Indicator
    To facilitate participation in the Extended Trading Close, Nasdaq
proposes to disseminate electronically to Participants an ``ETC Order
Imbalance Indicator,'' beginning at 4:00:05 p.m. (or 1:00:05 p.m. on a
day when Nasdaq closes early), and continuing in 5 second intervals
thereafter until the Extended Trading Close concludes at 4:05 p.m. (or
1:05 p.m. on a day when Nasdaq closes early). The ETC Order Imbalance
Indicator will convey to Participants the symbol and total number of
matched and executed shares in the Extended Trading Close (as of the
time of dissemination of the ETC Order Imbalance Indicator), as well as
total size of any ETC Imbalance (exclusive of Orders with Minimum
Quantity instructions) \17\ and the buy/sell direction of any ETC
Imbalance.
---------------------------------------------------------------------------

    \17\ The Exchange proposes to exclude ETC Eligible Orders with
Minimum Quantity instructions from this calculation of the size of
the ETC Imbalance because the size of such Orders may be misleading
to Participants, given that such Orders will not execute if the
Minimum Quantity instruction is not satisfied.
---------------------------------------------------------------------------

Implementation
    The Exchange currently intends to introduce the Extended Trading
Close, and begin accepting ETC Orders, during the Fourth Quarter of
2021. At least 30 days prior to launching the Extended Trading Close,
and beginning to accept ETC Orders, the Exchange will publish a Nasdaq
Trader Alert announcing the launch date.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\18\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\19\ in particular, in that it is designed to
promote just and equitable principles of trade, to remove impediments
to and perfect the mechanism of a free and open market and a national
market

system, and, in general to protect investors and the public interest.
---------------------------------------------------------------------------

    \18\ 15 U.S.C. 78f(b).
    \19\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The proposal is consistent with the Act because it would create an
additional opportunity for Participants to execute orders in Nasdaq-
listed securities at the Closing Cross price for a limited time period
after the Closing Cross concludes. For Participants with LOC Orders
that do not execute in full in the Closing Cross, the Extended Trading
Close will give those LOC Orders another opportunity to execute at the
Nasdaq Official Closing Price, as determined by the Closing Cross,
before the After Market Trading price moves far away from it. Likewise,
Participants will have an opportunity to access liquidity at the Nasdaq
Official Closing Price (as determined by the Closing Cross) even if
they did not participate in the Closing Cross. By increasing
opportunities for Participant to execute their orders at the Nasdaq
Official Closing Price (as determined by the Closing Cross), the
Exchange will allow them to execute sizable orders without market
impact as a complement to the Closing Cross and as an alternative to
After Hours Trading that can be less liquid than Market Hours trading.
    The Exchange believes it is consistent with the Act to provide for
LOC Orders entered through the RASH and FIX protocols to roll over into
the ETC automatically, if unexecuted in full during the Closing Cross,
because Nasdaq typically assumes a more active role in managing the
order flow submitted by users of the RASH and FIX protocols. Allowing
these Participants to have their remaining LOC orders automatically
participate in the Extended Trading Close will provide these
Participants an additional opportunity for execution at the Nasdaq
Official Closing Price (as determined by the Closing Cross), and it
reflects the order flow management practices of these Participants. In
contrast, users of the OUCH and FLITE protocols generally assume a more
active role in managing their order flow. Having unexecuted shares of
LOC orders canceled and requiring that an ETC Order be sent after the
Closing Cross in order to participate in the Extended Trading Close
reflects the order flow management practices of these Participants.
    The Exchange proposes to make participation in the Extended Trading
Close optional for those Participants that wish to continue the current
System practice of cancelling LOC Orders that remain unexecuted after
the Closing Cross, or by designating LOC Orders to participate in After
Hours Trading if they remain unexecuted after the Closing Cross.
Therefore, as proposed, Participants can opt-out from having their ETC-
Eligible LOC Orders participate in the Extended Trading Close, while
their LOC Orders with a time-in-force that continues after the Closing
Cross will automatically bypass the Extended Trading Close.
Furthermore, the Exchange proposes to allow Participants to modify or
cancel ETC Eligible LOC Orders and ETC Orders at any time after the
Extended Trading Close begins, should they choose to do so. The System
will automatically cancel any portion of ETC Eligible LOC Orders and
ETC Orders that remain unexecuted at the conclusion of the Extended
Trading Close.
    Moreover, as a means of mitigating the risk that the After Market
Trading price of a Nasdaq-listed security will rapidly and
substantially deviate from the Nasdaq Official Closing Price for the
security (as determined by the Closing Cross), and thus cause orders in
the Extended Trading Close to execute at prices that no longer reflect
the value of the security, the Exchange proposes to suspend executions
of matched orders in a security in the Extended Trading Close whenever
and for as long as the After Hours Trading last sale price or best bid
or offer of that security deviates the greater of 0.5% or $0.01 from
the Nasdaq Official Closing price for the security, as determined by
the Closing Cross. (From time to time, Nasdaq management may modify
these thresholds upon prior notice to market Participants.) If during
the Extended Trading Close, the After Market Hours Trading price or
best bid or offer of a security returns to within the 0.5%/$0.01
thresholds (or such other thresholds as Nasdaq management may set, upon
prior notice to market Participants), then the System will resume
execution of ETC Eligible Orders. The System will cancel any shares of
ETC Eligible Orders for which executions remain suspended as of the
conclusion of the Extended Trading Close.
    The Nasdaq Closing Cross (as well as the LULD Closing Cross) is a
robust price discovery and liquidity mechanism in the national market
system. The mechanism is used by a diverse set of Participants for a
diverse set of reasons. The growth in participation over the years is
testament to the value the Closing Cross provides to the market and the
Participants in the market. As described above, the Extended Trading
Close will be complementary to the Closing Cross and LULD Closing Cross
and is not intended or expected to be a substitute for the Closing
Cross or the LULD Closing Cross. Instead it will provide a simple
additional mechanism for Participants who seek additional liquidity at
the Nasdaq Official Closing Price, as determined by the Closing Cross,
after regular market hours trading has completed. Nasdaq does not
expect the Extended Trading Close to have an impact on the
participation in the Nasdaq Closing Cross or the LULD Closing Cross.
Nasdaq notes that a number of off-exchange trading venues already offer
their participants the ability to receive the Nasdaq Official Closing
Price for their orders after the Closing Cross occurs, and that such
functionality has grown popular with certain Participants. Nasdaq
intends for the Extended Trading Close to be an alternative to these
off-exchange offerings, that will be available to all Nasdaq
Participants.
    Additionally, Nasdaq will also disseminate an ETC Imbalance
Indicator to help inform participation in the Extended Trading Close,
which is something that off-exchange venues do not provide. The
proposed dissemination of an ETC Imbalance Indicator is consistent with
the Act because it will provide for the Extended Trading Close to be
transparent with respect to the liquidity that is available to match
and execute in it. The Exchange believes it is consistent with the Act
to exclude ETC Eligible Orders with Minimum Quantity instructions from
the calculation of the size of the ETC Imbalance because the size of
such Orders may be misleading to Participants, given that such Orders
will not execute if the Minimum Quantity instruction is not satisfied.
    As with the Closing Cross and any other facet of its market, Nasdaq
will surveil the Extended Trading Close for any unfair or manipulative
trading practices.

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

    The Exchange does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act. To the contrary, the proposal
will promote competition among trading venues for on-close and post-
close orders in Nasdaq-listed securities.
    Nasdaq notes that participation in the Extended Trading Close is
completely voluntary. Any Participant that does not wish for its
unexecuted LOC Orders to participate in the Extended Trading Close will
be able to avoid doing so by disabling this functionality for LOCs,
which will cause the System to cancel

the unexecuted LOC Orders after the Closing Cross concludes, or by also
selecting a time-in-force of ``Closing Cross/Extended Hours,'' which
will cause the unexecuted LOC Orders to commence After Hours Trading
immediately after the Closing Cross ends, and bypass the Extended
Trading Close. Participants may also modify or cancel their ETC
Eligible Orders during the Extended Trading Close.
    Nasdaq believes that it is appropriate to limit participation in
the Extended Trading Close to orders in Nasdaq-listed securities. As a
primary listing market, Nasdaq is committed to investing in and
enhancing the Closing Cross process for Nasdaq-listed issuers, their
shareholders, investors, and all Participants involved in the robust
price discovery and liquidity process that the Closing Cross serves.
Moreover, the vast majority of Participants looking to trade at the
closing price participate in the primary listing market's closing
auction and do not route orders to non-primary market listing
destinations.

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

    Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period up to 90 days (i) as the
Commission may designate if it finds such longer period to be
appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
    (A) By order approve or disapprove such proposed rule change, or
    (B) institute proceedings to determine whether the proposed rule
change should be disapproved.

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_ADDRESS>Please include
File Number SR-NASDAQ-2021-040 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-NASDAQ-2021-040. 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-NASDAQ-2021-040 and should be submitted
on or before August 18, 2021.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\20\
---------------------------------------------------------------------------

    \20\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-15991 Filed 7-27-21; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 77, Number 115 (Thursday, June 14, 2012)]
[Notices]
[Pages 35735-35738]
[FR Doc No: 2012-14536]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-67172; File No. SR-BATS-2012-020]

Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change Related to
Fees for Use of BATS Exchange, Inc.

June 8, 2012.
    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 May 31, 2012, BATS Exchange, Inc. (the ``Exchange'' or ``BATS'')
filed with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I, II, and III below, which
Items have been prepared by the Exchange. The Exchange has designated
the proposed rule change as one establishing or changing a member due,
fee, or other charge imposed by the Exchange under Section
19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2) thereunder,\4\
which renders the proposed rule change effective upon filing with the
Commission. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to amend the fee schedule applicable to
Members \5\ and non-members of the Exchange pursuant to BATS Rules
15.1(a) and (c). While changes to the fee schedule pursuant to this
proposal will be effective upon filing, the changes will become
operative on June 1, 2012.
---------------------------------------------------------------------------

    \5\ A Member is any registered broker or dealer that has been
admitted to membership in the Exchange.
---------------------------------------------------------------------------

    The text of the proposed rule change is available at the Exchange's
Web site at http://www.batstrading.com, 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 parts of such
statements.

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

1. Purpose
    The Exchange proposes to modify the ``Options Pricing'' section of
its fee schedule to: (i) modify the rebates provided by the Exchange
for Customer \6\ orders that add liquidity to Exchange's options
platform (``BATS Options'') in options classes subject to the penny
pilot program as described below (``Penny Pilot Securities''),\7\ and
(ii) modify the BATS Options NBBO Setter Program \8\ by adopting
enhanced rebates for liquidity resulting from orders with a significant
level of displayed size. The Exchange also proposes minor structural
changes to the Options Pricing section of the Exchange's fee schedule,
including movement and re-numbering of certain footnotes.
---------------------------------------------------------------------------

    \6\ As defined on the Exchange's fee schedule, a ``Customer''
order is any transaction identified by a Member for clearing in the
Customer range at the Options Clearing Corporation (``OCC''), except
for those designated as ``Professional''.
    \7\ The Exchange currently charges different fees and provides
different rebates depending on whether an options class is an
options class that qualifies as a Penny Pilot Security pursuant to
Exchange Rule 21.5, Interpretation and Policy .01 or is a non-penny
options class.
    \8\ The NBBO Setter Program is a program that provides
additional rebates for executions resulting from orders that add
liquidity that set either the national best bid (``NBB'') or
national best offer (``NBO'').
---------------------------------------------------------------------------

(i) Customer Rebates for Adding Liquidity

    The Exchange currently provides rebates for Customer orders that
add liquidity to the BATS Options order book in Penny Pilot Securities
pursuant to a tiered pricing structure, as described below. The
Exchange proposes to modify this tiered pricing structure, which will
result in the potential for Customer orders to receive larger rebates
per contract.
    The Exchange currently provides a rebate of $0.30 per contract for
Customer orders that add liquidity to the BATS Options order book to
the extent a Member of BATS Options does not qualify for a higher
rebate based on

their average daily volume (``ADV'').\9\ The Exchange also currently
provides Members with an ADV equal to or greater than 0.30% of average
total consolidated volume (``TCV'') \10\ with a rebate of $0.42 per
contract for Customer orders that add liquidity to the BATS Options
order book in Penny Pilot Securities and a rebate of $0.44 per contract
for Customer orders that add liquidity to the BATS Options order book
in Penny Pilot Securities for Members with an ADV equal to or greater
than 1% of average TCV. Finally, the Exchange currently offers its Grow
with Us pricing program to Customer orders that add liquidity by
providing a Member with enhanced rebates (and lower execution fees) to
the extent such Member shows a minimum of 5 basis points TCV
improvement over the Member's previous highest monthly TCV on BATS
Options, or ``High Water Mark.'' The Exchange has defined High Water
Mark as the greater of a Member's fourth quarter 2011 TCV or a Member's
best monthly TCV on BATS Options thereafter.\11\ Under the current
pricing structure, a Member that does not qualify for the lower tier
applicable to Members with an ADV equal to or greater than 0.30% of
average TCV but achieves at least a 5 basis point increase over its
previous High Water Mark is provided a rebate of $0.36 per contract for
Customer orders that add liquidity to the BATS Options order book in
Penny Pilot Securities. A Member that qualifies for the lower tier
applicable to Members with an ADV equal to or greater than 0.30% of
average TCV but not the 1% of average TCV tier that achieves at least a
5 basis point increase over its previous High Water Mark is provided a
rebate of $0.43 per contract for Customer orders that add liquidity to
the BATS Options order book in Penny Pilot Securities.
---------------------------------------------------------------------------

    \9\ As defined on the Exchange's fee schedule, ADV is average
daily volume calculated as the number of contracts added or removed,
combined, per day on a monthly basis. The fee schedule also provides
that routed contracts are not included in ADV calculation.
    \10\ As defined on the Exchange's fee schedule, TCV is total
consolidated volume calculated as the volume reported by all
exchanges to the consolidated transaction reporting plan for the
month for which the fees apply.
    \11\ For example, assume that for the fourth quarter of 2011, a
Member has an ADV of 0.10% of average TCV. Such Member would not
qualify for volume tier pricing applicable to Members with an ADV of
0.30% of average TCV. However, if, in June of 2012, such Member
achieves an average TCV of 0.15% on BATS Options, such Member will
receive one-half of the economic benefit such Member would receive
if the Member had reached the 0.30% TCV volume tier and the Member's
new High Water Mark will now be 0.15%.
---------------------------------------------------------------------------

    The Exchange proposes to increase the current Grow with Us rebates
and to adopt a new Grow with Us rebate for Customer orders that add
liquidity to the BATS Options order book in Penny Pilot Securities, as
described below.
    The Exchange proposes to increase its rebate for a Member that does
not qualify for the lower tier applicable to Members with an ADV equal
to or greater than 0.30% of average TCV but achieves at least a 5 basis
point increase over its previous High Water Mark from a rebate of $0.36
per contract to a rebate of $0.38 per contract for Customer orders that
add liquidity to BATS Options in Penny Pilot Securities. Similarly, the
Exchange proposes to increase its rebate for a Member that qualifies
for the lower tier applicable to Members with an ADV equal to or
greater than 0.30% of average TCV but not the 1% of average TCV tier
that achieves at least a 5 basis point increase over its previous High
Water Mark from a rebate of $0.43 per contract to a rebate of $0.45 per
contract for Customer orders that add liquidity to BATS Options in
Penny Pilot Securities. Finally, the Exchange proposes to adopt a new
Grow with Us rebate for Members that have an ADV greater than 1% of
average TCV by providing a rebate to those Members that meet this tier
but are also increasing their participation on BATS Options as
demonstrated by achievement of at least a 5 basis point increase over
its previous High Water Mark. The Exchange proposes to provide such
Members with a rebate of $0.46 per contract for Customer orders that
add liquidity to BATS Options in Penny Pilot Securities.
    The Exchange is not proposing any changes to the tiered rebate
structure for Customer orders entered by Members that do not qualify
for Grow with Us pricing nor is the Exchange proposing to modify the
rebates provided for Professional,\12\ Firm and Market Maker \13\
orders.
---------------------------------------------------------------------------

    \12\ As defined in Rule 16.1, the term ``Professional'' means
any person or entity that (i) is not a broker or dealer in
securities, and (ii) places more than 390 orders in listed options
per day on average during a calendar month for its own beneficial
account(s).
    \13\ As set forth on the Exchange's fee schedule, and consistent
with the definition of a Customer order, classification as a
``Firm'' or ``Market Maker'' order depends on the identification by
a Member of the applicable clearing range at the OCC.
---------------------------------------------------------------------------

(ii) Enhanced NBBO Setter Rebate for Orders Meeting Size Requirements

    The Exchange's NBBO Setter Program is a program intended to
incentivize aggressive quoting on BATS Options by providing an
additional rebate upon execution for all orders that add liquidity that
set either the NBB or NBO (the ``NBBO Setter Rebate''),\14\ subject to
certain volume requirements. The Exchange currently provides an
additional $0.06 per contract rebate for executions of Professional,
Firm and Market Maker orders that qualify for the NBBO Setter Rebate by
Members with an ADV equal to or greater than 0.30% of average TCV but
less than 1% of average TCV and an additional $0.10 per contract for
qualifying executions of Professional, Firm and Market Maker orders by
Members with an ADV equal to or greater than 1% of TCV. The Exchange
also applies its Grow with Us pricing program to the NBBO Setter
Rebate. Accordingly, a Member that does not qualify for NBBO Setter
Rebates applicable to Members with an ADV equal to or greater than
0.30% of average TCV but achieves at least a 5 basis point increase
over its previous High Water Mark receives NBBO Setter Rebates of $0.03
per contract for qualifying executions. Similarly, a Member that
qualifies for the lower tier applicable to Members with an ADV equal to
or greater than 0.30% of average TCV but not the 1% of average TCV tier
that achieves at least a 5 basis point increase over its previous High
Water Mark is provided a NBBO Setter Rebate of $0.08 per contract for
qualifying executions.
---------------------------------------------------------------------------

    \14\ An order that is entered at the most aggressive price both
on the BATS Options book and according to then current OPRA data
will be determined to have set the NBB or NBO for purposes of the
NBBO Setter Rebate without regard to whether a more aggressive order
is entered prior to the original order being executed.
---------------------------------------------------------------------------

    In order to further incentivize aggressive liquidity by incenting
displayed size of contracts, the Exchange proposes to provide twice the
rebate for executions that qualify for an NBBO Setter Rebate and result
from an order with a displayed size that equals or exceeds 25
contracts. Accordingly, rather than NBBO Setter Rebates of $0.03,
$0.06, $0.08 and $0.10 per contract, as described above, the Exchange
proposes to provide enhanced NBBO Setter Rebates of $0.06, $0.12, $0.16
and $0.20, respectively, for executions that meet the size threshold.
The Exchange proposes to limit the enhanced rebate to executions up to
200 contracts. For any executions above 200 contracts, the Exchange
will provide the enhanced rebate based on order size for the first 200
contracts executed, and the standard NBBO Setter Rebate for all
remaining contracts executed on that order.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with

the requirements of the Act and the rules and regulations thereunder
that are applicable to a national securities exchange, and, in
particular, with the requirements of Section 6 of the Act.\15\
Specifically, the Exchange believes that the proposed rule change is
consistent with Section 6(b)(4) of the Act,\16\ in that it provides for
the equitable allocation of reasonable dues, fees and other charges
among members and other persons using any facility or system which the
Exchange operates or controls. The Exchange notes that it operates in a
highly competitive market in which market participants can readily
direct order flow to competing venues if they deem fee levels at a
particular venue to be excessive.
---------------------------------------------------------------------------

    \15\ 15 U.S.C. 78f.
    \16\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    Volume-based rebates such as the ones maintained by the Exchange
have been widely adopted in the cash equities markets and are
increasingly in use by the options exchanges, and are equitable because
they are open to all Members on an equal basis and provide discounts
that are reasonably related to the value to an exchange's market
quality associated with higher levels of market activity, such as
higher levels of liquidity provision and/or growth patterns, and
introduction of higher volumes of orders into the price and volume
discovery processes. Accordingly, the Exchange believes that the
continued offering of volume-based rebates for Customer orders in Penny
Pilot Securities is not unfairly discriminatory because it is
consistent with the overall goals of enhancing market quality.
Similarly, the Exchange believes that continuing to base its tiered fee
structure based on overall TCV, rather than a static number of
contracts irrespective of overall volume in the options industry, is a
fair and equitable approach to pricing.
    The Exchange believes that continuing to provide additional
financial incentives to Members that demonstrate a 5 basis point
increase over their previous High Water Mark offers an additional,
flexible way to achieve financial incentives from the Exchange and
encourages Members to add increasing amounts of liquidity to BATS
Options each month. The Grow with Us pricing program, therefore, is
reasonable in that it rewards a Member's growth patterns. Such
increased volume increases potential revenue to the Exchange, and will
allow the Exchange to continue to provide and potentially expand the
incentive programs operated by the Exchange. The increased liquidity
also benefits all investors by deepening the BATS Options liquidity
pool, offering additional flexibility for all investors to enjoy cost
savings, supporting the quality of price discovery, promoting market
transparency and improving investor protection. The Grow with Us
program is also fair and equitable and not unreasonably discriminatory
in that it is available to all Members, even for Members that do not
meet the Exchange's volume based tiers.
    More specifically, the increase to Grow with Us rebates for
Customer orders in Penny Pilot Securities is reasonable as it is a
small increase that encourages growth by Members, which will, in turn,
benefit all participants on BATS Options. The proposed rebates are fair
and equitable and not unreasonably discriminatory due to the fact that
Grow with Us pricing is available to all Members, even those that do
not qualify for the Exchange's lowest volume tier. The Exchange notes
that, as proposed, BATS Options will be providing a rebate to Members
that qualify for the lower tier and Grow with Us pricing (such Members
will receive a $0.45 per contract rebate for Customer orders) that is
higher than the rebate provided to Members that qualify for the higher
tier (1% or more) but do not qualify for Grow with Us pricing (such
Members will receive a $0.44 per contract rebate for Customer orders).
The Exchange believes that this pricing structure is reasonable and not
unreasonably discriminatory because the Exchange is incentivizing
Members to increase their activity on BATS Options, to the benefit of
other BATS Options participants. Also, consistent with this objective,
the Exchange has adopted a new Grow with Us category for Members that
qualify for the higher tier and also qualify for Grow with Us pricing
(such Members will receive a $0.46 per contract rebate for Customer
orders).
    The enhanced NBBO Setter program that focuses on the size of
contracts has the potential of increasing the available liquidity at
the Exchange. Accordingly, the proposed adoption of a program to
provide enhanced NBBO Setter Rebates for executions from orders that
qualify based on their size is fair and equitable and not unreasonably
discriminatory because such a program is consistent with the overall
goals of enhancing market quality and will benefit all investors by
deepening the BATS Options liquidity pool, offering additional
flexibility for all investors to enjoy cost savings, supporting the
quality of price discovery, promoting market transparency and improving
investor protection. The Exchange notes that it does not currently
operate any auctions through which orders are held and broadcast to its
membership, nor does the Exchange engage in any payment for order flow
practices. Rather, the Exchange is proposing to enhance its transparent
market structure with an easy to understand and transparent pricing
structure by adding incentives for aggressive quoting with size. The
Exchange also believes that the rebates as proposed are reasonable in
that they significantly incentivize aggressive quoting with respect to
both price and size.

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

    The Exchange does not believe that the proposed rule change imposes
any burden on competition.

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

    No written comments were solicited or received.

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

    Pursuant to Section 19(b)(3)(A)(ii) of the Act \17\ and Rule 19b-
4(f)(2) thereunder,\18\ the Exchange has designated this proposal as
establishing or changing a due, fee, or other charge applicable to the
Exchange's Members and non-members, which renders the proposed rule
change effective upon filing.
---------------------------------------------------------------------------

    \17\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \18\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

    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 necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File

Number SR-BATS-2012-020 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-BATS-2012-020. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, 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; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-BATS-2012-020 and should be
submitted on or before July 5, 2012.
---------------------------------------------------------------------------

    \19\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-14536 Filed 6-13-12; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register: June 21, 2010 (Volume 75, Number 118)]
[Notices]
[Page 35012-35013]
[DOCID:fr21jn10-66]

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

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

Combined Notice of Filings 1

June 8, 2010.
    Take notice that the Commission received the following exempt
wholesale generator filings:

    Docket Numbers: EG10-42-000.
    Applicants: Longview Power, LLC.
    Description: Self-Certification of EG or FC of Longview Power, LLC.
    Filed Date: 06/07/2010.
    Accession Number: 20100607-5118.
    Comment Date: 5 p.m. Eastern Time on Monday, June 28, 2010.

    Docket Numbers: EG10-43-000.
    Applicants: Alta Wind I, LLC.
    Description: Notice of Self-Certification of Exempt Wholesale
Generator Status of Alta Wind I, LLC.
    Filed Date: 06/08/2010.
    Accession Number: 20100608-5051.
    Comment Date: 5 p.m. Eastern Time on Tuesday, June 29, 2010.

    Docket Numbers: EG10-44-000.
    Applicants: Alta Wind II, LLC.
    Description: Notice of Self-Certification of Exempt Wholesale
Generator Status of Alta Wind II, LLC.
    Filed Date: 06/08/2010.
    Accession Number: 20100608-5052.
    Comment Date: 5 p.m. Eastern Time on Tuesday, June 29, 2010.

    Docket Numbers: EG10-45-000.
    Applicants: Alta Wind III, LLC.
    Description: Notice of Self-Certification of Exempt Wholesale
Generator Status of Alta Wind III, LLC.
    Filed Date: 06/08/2010.
    Accession Number: 20100608-5053.
    Comment Date: 5 p.m. Eastern Time on Tuesday, June 29, 2010.

    Docket Numbers: EG10-46-000.
    Applicants: Alta Wind IV, LLC.
    Description: Notice of Self-Certification of Exempt Wholesale
Generator Status of Alta Wind IV, LLC.
    Filed Date: 06/08/2010.
    Accession Number: 20100608-5054.
    Comment Date: 5 p.m. Eastern Time on Tuesday, June 29, 2010.

    Docket Numbers: EG10-47-000.
    Applicants: Alta Wind V, LLC.
    Description: Notice of Self-Certification of Exempt Wholesale
Generator Status of Alta Wind V, LLC.
    Filed Date: 06/08/2010.
    Accession Number: 20100608-5055.
    Comment Date: 5 p.m. Eastern Time on Tuesday, June 29, 2010.

    Take notice that the Commission received the following electric
rate filings:

    Docket Numbers: ER09-701-005.
    Applicants: PJM Interconnection, LLC.
    Description: PJM Interconnection, LLC submits revisions to Schedule
1 of the Amended and Restated Operating Agreement, etc. retroactively
effective 8/28/09.
    Filed Date: 06/07/2010.
    Accession Number: 20100608-0203.
    Comment Date: 5 p.m. Eastern Time on Monday, June 28, 2010.

    Docket Numbers: ER10-27-003.
    Applicants: Midwest Independent Transmission System Operator, Inc.
    Description: Midwest Independent Transmission System Operator, Inc.
submits Second Substitute Original Sheet 3822 to FERC Electric Tariff,
Fourth Revised Volume 1.
    Filed Date: 06/07/2010.
    Accession Number: 20100607-0211.
    Comment Date: 5 p.m. Eastern Time on Monday, June 28, 2010.

    Docket Numbers: ER10-1064-001.
    Applicants: 511 Plaza Energy, LLC.
    Description: 511 Plaza Energy, LLC submits an amendment for
authorization to make wholesale of energy and capacity at negotiated,
market-based rates.
    Filed Date: 06/01/2010.
    Accession Number: 20100602-0233.
    Comment Date: 5 p.m. Eastern Time on Tuesday, June 22, 2010.

    Docket Numbers: ER10-1171-001.
    Applicants: Bluco Energy, LLC.
    Description: Bluco Energy, LLC submits the petition for Acceptance
of Initial Tariff, Waivers and Blanket Authorization.
    Filed Date: 06/07/2010.
    Accession Number: 20100607-0210.
    Comment Date: 5 p.m. Eastern Time on Monday, June 28, 2010.

    Any person desiring to intervene or to protest in any of the above
proceedings must file in accordance with Rules 211 and 214 of the
Commission's Rules of Practice and Procedure (18 CFR 385.211 and
385.214) on or before 5 p.m. Eastern time on the specified comment
date. It is not necessary to separately intervene again in a subdocket
related to a compliance filing if you have previously intervened in the
same docket. Protests will be considered by the Commission in
determining the appropriate action to be taken, but will not serve to
make protestants parties to the proceeding. Anyone filing a motion to
intervene or protest must serve a copy of that document on the
Applicant. In reference to filings initiating a new proceeding,
interventions or protests submitted on or before the comment deadline
need not be served on persons other than the Applicant.
    As it relates to any qualifying facility filings, the notices of
self-certification [or self-recertification] listed above, do not
institute a proceeding regarding qualifying facility status. A notice
of self-certification [or self-recertification] simply provides
notification that the entity making the filing has determined the
facility named in the notice meets the applicable criteria to be a
qualifying facility. Intervention and/or protest do not lie in dockets
that are qualifying facility self-certifications or self-
recertifications. Any person seeking to challenge such qualifying
facility status may do so by filing a motion pursuant to 18 CFR
292.207(d)(iii). Intervention and protests may be filed in response to
notices of qualifying facility dockets other than self-certifications
and self-recertifications.
    The Commission encourages electronic submission of protests and
interventions in lieu of paper, using the FERC Online links at http://
www.ferc.gov. To facilitate electronic service, persons with Internet
access who will eFile a document and/or be listed as a contact for an
intervenor must create and validate an eRegistration account using the
eRegistration link. Select the eFiling link to log on and submit the
intervention or protests.
    Persons unable to file electronically should submit an original and
14 copies of the intervention or protest to the Federal Energy
Regulatory Commission, 888 First St., NE., Washington, DC 20426.
    The filings in the above proceedings are accessible in the
Commission's eLibrary system by clicking on the appropriate link in the
above list. They are also available for review in the Commission's
Public Reference Room in Washington, DC. There is an eSubscription link
on the Web site that enables subscribers to receive e-mail

notification when a document is added to a subscribed docket(s). For
assistance with any FERC Online service, please e-mail
<EMAIL_ADDRESS>or call<PHONE_NUMBER> (toll free). For TTY,
call<PHONE_NUMBER>.

Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2010-14856 Filed 6-18-10; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 85, Number 131 (Wednesday, July 8, 2020)]
[Notices]
[Pages 41077-41079]
[FR Doc No: 2020-14631]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-89213; File No. SR-MIAX-2020-11]

Self-Regulatory Organizations; Miami International Securities
Exchange, LLC; Order Approving a Proposed Rule Change To Amend Exchange
Rule 518, Complex Orders, To Adopt New Interpretation and Policy .08,
Related Futures Cross Orders

July 1, 2020.

I. Introduction

    On May 11, 2020, Miami International Securities Exchange, LLC
(``MIAX'' or ``Exchange'') filed with the Securities and Exchange
Commission (``Commission''), pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4
thereunder,\2\ a proposed rule change to provide for the trading of
Related Futures Cross (``RFC'') orders. The proposed rule change was
published for comment in the Federal Register on May 20, 2020.\3\ The
Commission received no comment letters regarding the proposed rule
change. This order approves the proposed rule change.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 88872 (May 14,
2020), 85 FR 30779 (``Notice'').
---------------------------------------------------------------------------

II. Description of the Proposed Rule Change

    The Exchange proposes to amend MIAX Rule 518, Complex Orders, to
adopt new Interpretation and Policy .08 to provide for the trading of
RFC orders. An RFC order is comprised of a SPIKES options \4\ combo
coupled with a contra-side order or orders totaling an equal number of
SPIKES option combo orders, which is identified to MIAX as being part
of an exchange of option contracts for related futures positions.\5\
For purposes of proposed MIAX Rule 518(a), an exchange of option
contracts for related futures positions is a transaction entered into
by market participants seeking to swap option positions with related
futures positions

with related exposures.\6\ A related futures position is a position in
a futures contract with either the same underlying as, or a high degree
of price correlation to, the underlying of the option combo in the RFC
order so that the execution of the option combos in the RFC order would
serve as an appropriate hedge for the related future positions.\7\ In
an exchange of contracts for related positions, one party(ies) must be
the buyer(s) of (or the holder(s) of) the long market exposure
associated with the options positions and the seller(s) of
corresponding futures contracts and the other party(ies) must be the
seller(s) of (or holder(s) of) the short market exposure associated
with the options positions and the buyer(s) of the corresponding
futures contracts.\8\ The quantity of the option contracts executed as
part of the RFC order must correlate to the quantity represented by the
related futures position portion of the exchange.\9\ The transaction
involving the related futures position of the exchange must comply with
all applicable rules of the designated contract market on which the
futures are listed for trading.\10\ An RFC order may be executed only
during Regular Trading Hours and contemporaneously with the execution
of the related futures position portion of the exchange.\11\ The
Exchange notes that the proposal is limited to a single class of a
proprietary product listed only on the Exchange.\12\
---------------------------------------------------------------------------

    \4\ The SPIKES Index (``SPIKES'' or ``Index'') measures expected
30-day volatility of the SPDR S&P 500 ETF Trust (``SPY''). See
Securities Exchange Act Release No. 84417 (October 12, 2018), 83 FR
52865 (October 18, 2018) (File No. SR-MIAX-2018-14) (approving the
listing and trading of SPIKES Index options).
    \5\ See proposed MIAX Rule 518, Interpretation and Policy
.08(a). For purposes of proposed MIAX Rule 518(a), a SPIKES options
combo is a two-legged order with one leg to purchase (sell) SPIKE
calls and another leg to sell (purchase) the same number of SPIKE
puts with the same expiration date and strike price. See proposed
MIAX Rule 518, Interpretation and Policy .08(a)(4).
    \6\ See proposed MIAX Rule 518(a)(5).
    \7\ See proposed MIAX Rule 518(a)(5)(a).
    \8\ See proposed MIAX Rule 518(a)(5)(b).
    \9\ See id.
    \10\ See proposed MIAX Rule 518(a)(7).
    \11\ See proposed MIAX Rule 518(a)(6).
    \12\ See Notice, 85 FR at 30781.
---------------------------------------------------------------------------

    To execute an RFC order, an Electronic Exchange Member (``EEM'')
\13\ must submit the RFC order to the System, which may execute
automatically on entry without exposure.\14\ An EEM may execute an RFC
order only if: (i) Each option leg executes at a price that complies
with MIAX Rule 518(c), provided that no option leg executes at the same
price as a Priority Customer Order in the Simple Book; (ii) each option
leg executes at a price at or between the NBBO for the applicable
series; and (iii) the execution price is better than the price of any
complex order resting in the Strategy Book, unless the RFC order is a
Priority Customer Order and the resting complex order is a non-Priority
Customer Order, in which case the execution price may be the same as or
better than the price of the resting complex order.\15\ The System
cancels an RFC order if it cannot execute.\16\
---------------------------------------------------------------------------

    \13\ An EEM is a Trading Permit who is not a Market Maker. EEMs
are deemed ``members'' under the Exchange Act. The System is the
automated trading system used by the Exchange for the trading of
securities. See MIAX Rule 100.
    \14\ See proposed MIAX Rule 518(a)(1). The Exchange notes that a
Qualified Contingent Cross Order is similarly executed as a clean
cross. See Notice, 85 FR at 30781, n. 14 (citing MIAX Rule 516(j)).
See also MIAX Rules 515(h)(4) (execution of Complex Qualified
Contingent Cross (``cQCC'') Orders) and 518(b)(6) (defining cQCC
Orders).
    \15\ See proposed MIAX Rule 518(a)(2).
    \16\ See id.
---------------------------------------------------------------------------

    Because there currently are no futures on the SPIKES Index, market
participants that wish to hedge a position in SPIKES options using
futures must use a highly correlated related instrument, such as VIX
futures.\17\ The Exchange notes that although SPIKES is highly
correlated to VIX, there is some basis risk between the two products,
which can be exacerbated during times of market volatility.\18\ As
described more fully in the Notice, a market participant that has
hedged a SPIKES options position with VIX futures could eliminate the
basis risk in that position by exchanging the VIX futures position for
a hedge comprised of SPIKES option combos, a synthetic equivalent to
the VIX futures position that does not carry basis risk.\19\ A market
participant seeking to reduce margin and capital requirements could
exchange a position in SPIKES options combos for a corresponding VIX
futures position.\20\ The Exchange proposes to adopt RFC orders to
facilitate these trades.\21\ The Exchange has put in place a regulatory
review plan to ensure that RFC orders are executed in conjunction with
an exchange of contracts for related positions as required by the
proposed rule.\22\
---------------------------------------------------------------------------

    \17\ MIAX notes that SPIKES is over 99% correlated to VIX. VIX
futures trade on the Chicago Futures Exchange. See Notice, 85 FR at
30779-80.
    \18\ Basis risk is the financial risk that offsetting
investments in a hedging strategy will not experience price changes
in entirely opposite directions from each other. This imperfect
correlation between two investments creates the potential for excess
gains or losses in a hedging strategy, thus adding risk to the
position. See Notice, 85 FR at 30779, n. 6. The Exchanges notes that
the SPIKES settlement value is determined using the opening prices
on MIAX of SPY options that expire in 30 days, while the VIX
settlement value is determined using the opening prices on the Cboe
Exchange of SPX options that expire in 30 days. Although SPY and SPX
are highly correlated, variances in supply and demand can cause the
settlement prices of the SPIKES and VIX Indexes to diverge. See
Notice, 85 FR at 30779-80.
    \19\ See id.
    \20\ See id. at 30780.
    \21\ See id.
    \22\ See id. at 30781.
---------------------------------------------------------------------------

III. Discussion and Commission Findings

    After careful review, the Commission finds that the proposed rule
change is consistent with the requirements of the Act,\23\ and the
rules and regulations thereunder applicable to a national securities
exchange.\24\ In particular, the Commission finds that the proposed
rule change is consistent with Section 6(b)(5) of the Act,\25\ which
requires, among other things, that the rules of a national securities
exchange be designed to prevent fraudulent and manipulative acts and
practices, to promote just and equitable principles of trade, to remove
impediments to and perfect the mechanism of a free and open market and
a national market system, and, in general, to protect investors and the
public interest, and that the rules are not designed to permit unfair
discrimination between customers, issuers, brokers, or dealers. RFC
orders would allow market participants trading SPIKES options to
eliminate basis risk by exchanging a VIX futures hedge for SPIKES
options combos, or to manage capital and margin requirements by
exchanging positions in SPIKES options combos with corresponding
positions in VIX futures, as described above. The Commission notes that
an RFC order may execute automatically without exposure only if: (i)
Each option leg executes at a price that complies with MIAX Rule
518(c), provided that no option leg executes at the same price as a
Priority Customer Order in the Simple Book; (ii) each option leg
executes at a price at or between the NBBO for the applicable series;
and (iii) the execution price is better than the price of any complex
order resting in the Strategy Book, unless the RFC order is a Priority
Customer Order and the resting complex order is a non-Priority Customer
Order, in which case the execution price may be the same as or better
than the price of the resting complex order.\26\ In addition, the
transaction involving the related futures position of an RFC order must
comply with all applicable rules of the designated contract market on
which the futures are listed for trading.\27\ The Exchange has put in
place a regulatory review plan to ensure that RFC orders are executed
in conjunction with an exchange of

contracts for related positions as required by the proposed rule.\28\
---------------------------------------------------------------------------

    \23\ 15 U.S.C. 78f.
    \24\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
    \25\ 15 U.S.C. 78f(b)(5).
    \26\ See proposed MIAX Rules 518(a)(1) and (2). The Commission
notes that cQCC Orders also may execute automatically upon entry.
See MIAX Rule 518(b)(6).
    \27\ See proposed MIAX Rule 518(a)(7).
    \28\ See Notice, 85 FR at 30781.
---------------------------------------------------------------------------

IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\29\ that the proposed rule change (SR-MIAX-2020-11) is approved.
---------------------------------------------------------------------------

    \29\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\30\
---------------------------------------------------------------------------

    \30\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-14631 Filed 7-7-20; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 76, Number 220 (Tuesday, November 15, 2011)]
[Notices]
[Pages 70746-70747]
[FR Doc No: 2011-29469]

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

DEPARTMENT OF HOMELAND SECURITY

Federal Emergency Management Agency

[Internal Agency Docket No. FEMA-3342-EM; Docket ID FEMA-2011-0001]

Connecticut; Amendment No. 1 to Notice of an Emergency
Declaration

AGENCY: Federal Emergency Management Agency, DHS.

ACTION: Notice.

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

SUMMARY: This notice amends the notice of an emergency declaration for
the State of Connecticut (FEMA-3342-EM), dated October 31, 2011, and
related determinations.

DATES: Effective Date: November 3, 2011.

FOR FURTHER INFORMATION CONTACT: Peggy Miller, Office of Response and
Recovery, Federal Emergency Management Agency, 500 C Street SW.,
Washington, DC 20472,<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: The notice of an emergency declaration for
the State of Connecticut is hereby amended to include the following
areas among those areas determined to have been adversely affected by
the event declared an emergency by the President in his declaration of
October 31, 2011.

    All eight counties in the State of Connecticut for debris
removal and emergency protective measures (Categories A and B) and
direct federal assistance for debris removal (Category A) under the
Public Assistance Program for a period of 72 hours, such period to
be selected by the state. Direct federal assistance for emergency
protective measures (Category B) under the Public Assistance
Program, without any time limitations, has already been designated
for this emergency declaration.

(The following Catalog of Federal Domestic Assistance Numbers (CFDA)
are to be used for reporting and drawing funds: 97.030, Community
Disaster Loans; 97.031, Cora Brown Fund; 97.032, Crisis Counseling;
97.033, Disaster Legal Services; 97.034, Disaster Unemployment
Assistance (DUA); 97.046, Fire Management Assistance Grant; 97.048,
Disaster Housing Assistance to Individuals and Households in
Presidentially Declared Disaster Areas; 97.049,

Presidentially Declared Disaster Assistance--Disaster Housing
Operations for Individuals and Households; 97.050, Presidentially
Declared Disaster Assistance to Individuals and Households--Other
Needs; 97.036, Disaster Grants--Public Assistance (Presidentially
Declared Disasters); 97.039, Hazard Mitigation Grant.)

W. Craig Fugate,
Administrator, Federal Emergency Management Agency.
[FR Doc. 2011-29469 Filed 11-14-11; 8:45 am]
BILLING CODE 9111-23-P


[Federal Register Volume 84, Number 210 (Wednesday, October 30, 2019)]
[Notices]
[Pages 58148-58149]
[FR Doc No: 2019-23698]

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

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

Combined Notice of Filings #1

    Take notice that the Commission received the following exempt
wholesale generator filings:

    Docket Numbers: EG20-13-000.
    Applicants: Key Capture Energy.
    Description: Notice of Self-Certification of EWG Status KCE TX 2,
LLC.
    Filed Date: 10/24/19.
    Accession Number: 20191024-5061.
    Comments Due: 5 p.m. ET 11/14/19.

    Docket Numbers: EG20-14-000.
    Applicants: Key Capture Energy.
    Description: Notice of Self-Certification of EWG Status of KCE TX
8, LLC.
    Filed Date: 10/24/19.
    Accession Number: 20191024-5084.
    Comments Due: 5 p.m. ET 11/14/19.

    Docket Numbers: EG20-15-000.
    Applicants: Key Capture Energy.
    Description: Notice of Self-Certification of EWG Status of KCE TX
7, LLC.
    Filed Date: 10/24/19.
    Accession Number: 20191024-5085.
    Comments Due: 5 p.m. ET 11/14/19.

    Docket Numbers: EG20-16-000.
    Applicants: Amadeus Wind, LLC.
    Description: Notice of Self-Certification of Exempt Wholesale
Generator Status of Amadeus Wind, LLC.
    Filed Date: 10/24/19.
    Accession Number: 20191024-5086.
    Comments Due: 5 p.m. ET 11/14/19.

    Take notice that the Commission received the following electric
rate filings:

    Docket Numbers: ER20-157-001.
    Applicants: PJM Interconnection, L.L.C.
    Description: Tariff Amendment: Amendment to Docket No. ER20-157-000
to be effective 11/12/2019.
    Filed Date: 10/24/19.
    Accession Number: 20191024-5060.
    Comments Due: 5 p.m. ET 11/14/19.

    Docket Numbers: ER20-175-000.
    Applicants: Midcontinent Independent System Operator, Inc., Otter
Tail Power Company.
    Description: Sec.  205(d) Rate Filing: 2019-10-23_Otter Tail Power
Attachment GG Filing to be effective 1/1/2020.
    Filed Date: 10/23/19.
    Accession Number: 20191023-5125.
    Comments Due: 5 p.m. ET 11/13/19.

    Docket Numbers: ER20-176-000.
    Applicants: Midcontinent Independent System Operator, Inc., Otter
Tail Power Company.
    Description: Sec.  205(d) Rate Filing: 2019-10-23_Otter Tail Power
Attachment O Filing to be effective 1/1/2020.
    Filed Date: 10/23/19.
    Accession Number: 20191023-5126.
    Comments Due: 5 p.m. ET 11/13/19.

    Docket Numbers: ER20-177-000.
    Applicants: Arizona Public Service Company.
    Description: Tariff Cancellation: Rate Schedule Nos. 242, 244, and
288 Cancellations to be effective 12/23/2019.
    Filed Date: 10/23/19.
    Accession Number: 20191023-5134.
    Comments Due: 5 p.m. ET 11/13/19.

    Docket Numbers: ER20-178-000.
    Applicants: Niagara Mohawk Power Corporation, New York Independent
System Operator, Inc.
    Description: Sec.  205(d) Rate Filing: Cost Reimbursement Agreement
(SA 2486) re: Niagara Mohawk and O'Brien and Gere to be effective 9/25/
2019.
    Filed Date: 10/24/19.
    Accession Number: 20191024-5000.
    Comments Due: 5 p.m. ET 11/14/19.

    Docket Numbers: ER20-179-000.
    Applicants: California Independent System Operator Corporation.
    Description: Petition for Approval of Disposition of Proceeds of
Penalty Assessments and Non-Refundable Interconnection Financial
Security of California Independent System Operator Corporation.
    Filed Date: 10/23/19.
    Accession Number: 20191023-5136.
    Comments Due: 5 p.m. ET 11/13/19.

    Docket Numbers: ER20-180-000.

    Applicants: Crazy Mountain Wind LLC.
    Description: Tariff Cancellation: Cancellation of Tariff to be
effective 10/25/2019.
    Filed Date: 10/24/19.
    Accession Number: 20191024-5050.
    Comments Due: 5 p.m. ET 11/14/19.

    Docket Numbers: ER20-181-000.
    Applicants: Cimarron Windpower II, LLC.
    Description: Compliance filing: MBR Tariff Language Clean-up Filing
to be effective 12/24/2019.
    Filed Date: 10/24/19.
    Accession Number: 20191024-5062.
    Comments Due: 5 p.m. ET 11/14/19.

    Docket Numbers: ER20-182-000.
    Applicants: Ironwood Windpower, LLC.
    Description: Compliance filing: MBR Tariff Language Clean-up Filing
to be effective 12/24/2019.
    Filed Date: 10/24/19.
    Accession Number: 20191024-5063.
    Comments Due: 5 p.m. ET 11/14/19.

    Docket Numbers: ER20-183-000.
    Applicants: Caprock Solar I LLC.
    Description: Compliance filing: MBR Tariff Language Clean-up Filing
to be effective 12/24/2019.
    Filed Date: 10/24/19.
    Accession Number: 20191024-5064.
    Comments Due: 5 p.m. ET 11/14/19.

    Docket Numbers: ER20-184-000.
    Applicants: Frontier Windpower, LLC.
    Description: Compliance filing: MBR Tariff Language Clean-up Filing
to be effective 12/24/2019.
    Filed Date: 10/24/19.
    Accession Number: 20191024-5067.
    Comments Due: 5 p.m. ET 11/14/19.

    Docket Numbers: ER20-185-000.
    Applicants: Southern California Edison Company.
    Description: Sec.  205(d) Rate Filing: LGIA Solar Star 3, LLC SA
No. 235 to be effective 10/25/2019.
    Filed Date: 10/24/19.
    Accession Number: 20191024-5089.
    Comments Due: 5 p.m. ET 11/14/19.

    Docket Numbers: ER20-186-000.
    Applicants: Southern California Edison Company.
    Description: Sec.  205(d) Rate Filing: LGIA Solar Star 4, LLC SA
No. 236 to be effective 10/25/2019.
    Filed Date: 10/24/19.
    Accession Number: 20191024-5091.
    Comments Due: 5 p.m. ET 11/14/19.

    Docket Numbers: ER20-187-000.
    Applicants: Southern California Edison Company.
    Description: Tariff Cancellation: Notice of Cancellation LGIA AES
Redondo Beach SA No. 64 to be effective 10/1/2019.
    Filed Date: 10/24/19.
    Accession Number: 20191024-5092.
    Comments Due: 5 p.m. ET 11/14/19.

    Docket Numbers: ER20-188-000.
    Applicants: Southern California Edison Company.
    Description: Sec.  205(d) Rate Filing: 2019 Revised Added
Facilities Rate for the Rate Schedules to be effective 7/26/2019.
    Filed Date: 10/24/19.
    Accession Number: 20191024-5093.
    Comments Due: 5 p.m. ET 11/14/19.

    The filings are accessible in the Commission's eLibrary system by
clicking on the links or querying the docket number.
    Any person desiring to intervene or protest in any of the above
proceedings must file in accordance with Rules 211 and 214 of the
Commission's Regulations (18 CFR 385.211 and 385.214) on or before 5:00
p.m. Eastern time on the specified comment date. Protests may be
considered, but intervention is necessary to become a party to the
proceeding.
    eFiling is encouraged. More detailed information relating to filing
requirements, interventions, protests, service, and qualifying
facilities filings can be found at: http://www.ferc.gov/docs-filing/efiling/filing-req.pdf. For other information, call<PHONE_NUMBER>
(toll free). For TTY, call<PHONE_NUMBER>.

    Dated: October 24, 2019.
Kimberly D. Bose,
Secretary.
[FR Doc. 2019-23698 Filed 10-29-19; 8:45 am]
BILLING CODE 6717-01-P


Note to Docket EPA-HQ-OAR-2009-0837

At 10 a.m. on November 22, 2010, at 1310 L Street, Washington, D.C., EPA
representatives Ragan Tate (OGC) and John Schakenbach (OAR), and DOJ
representative Austin Saylor met with Lauren Freeman of Hunton &
Williams representing the Utility Air Regulatory Group (UARG) in
settlement discussions related to the Petition for Review filed by UARG
relating to January 24, 2008 amendments to the Protocol Gas Verification
Program and Minimum Competency Requirements for Air Emission Testing
provisions of 40 CFR Part 75.


[Federal Register: December 15, 2006 (Volume 71, Number 241)]
[Notices]
[Page 75536-75538]
[DOCID:fr15de06-71]

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

ENVIRONMENTAL PROTECTION AGENCY

[FRL-8257-2]

California State Nonroad Engine and Vehicle Pollution Control
Standards; Decision of the Administrator

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice regarding authorization of California small off-road
engine emission standards.

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

SUMMARY: EPA today, pursuant to section 209(e) of the Clean Air Act
(Act), 42 U.S.C. 7543(e), is granting California its request for an
authorization of its small off-road engine emission standards for 2007
and subsequent model years (SORE). By letter dated April 11, 2005, the
California Air Resources Board (CARB) requested that EPA grant
California an authorization (sometimes referred to as a waiver of
federal preemption) for its SORE regulations which set forth amended
exhaust emission standards and new evaporative emission standards and
associated test procedures for Class I and Class II small off-road
engines for 2007 and subsequent model years.

ADDRESSES: The Agency's Decision Document, containing an explanation of
the Assistant Administrator's decision, as well as all documents relied
upon in making that decision, including those submitted to EPA by CARB,
are available at EPA's Air and Radiation Docket and Information Center
(Air Docket). Materials relevant to this decision are contained in
Docket No. EPA-HQ-OAR-2005-0133. The docket is located at The Air
Docket, Room 3334, 1301 Constitution Avenue, NW., Washington, DC 20460,
and may be viewed between 8 a.m. and 5:30 p.m., Monday through Friday.
The telephone is<PHONE_NUMBER>. A reasonable fee may be charged by EPA
for copying docket material.
    Additionally, an electronic version of the public docket is
available through the Federal government's electronic public docket and
comment system. You may access EPA dockets at http://www.regulations.gov.
 After opening the www.regulations.gov Web site,

select ``Environmental Protection Agency'' from the pull-down Agency
list, then scroll to ``Keyword or ID'' and enter EPA-HQ-OAR-2004-0133
to view documents in the record of the SORE authorization request.
Although a part of the official docket, the public docket does not
include Confidential Business Information (CBI) or other information
whose disclosure is restricted by statute.

FOR FURTHER INFORMATION CONTACT: David Dickinson, Compliance and
Innovative Strategies Division, U.S. Environmental Protection Agency,
Ariel Rios Building (6405J), 1200 Pennsylvania Avenue, NW., Washington,
DC 20460. Telephone:<PHONE_NUMBER>6. E-Mail Address:
<EMAIL_ADDRESS>

SUPPLEMENTARY INFORMATION: I have decided to grant California an
authorization pursuant to section 209(e) of the Act for the SORE
regulations.\1\ As explained in the Decision Document supporting
today's decision, I have decided to grant a full authorization for all
of the SORE regulation despite CARB's request that some portions be
considered within the scope of previous authorization determinations.
As also explained in the Decision Document, EPA received a series of
comments supporting CARB's request for an authorization and received
comments from one commenter that conditionally supported the
authorization and raised other concerns but did not represent that such
other concerns should be the basis for denying or delaying the
authorization. For the reasons set forth below and further discussed in
the Decision Document, EPA is granting CARB's request for authorization
for its SORE regulations.
---------------------------------------------------------------------------

    \1\ The CARB Board approved the SORE regulations by Resolution
03-24.
---------------------------------------------------------------------------

    Section 209(e)(1) of the Act addresses the permanent preemption of
any State, or political subdivision thereof, from adopting or
attempting to enforce any standard or other requirement relating

to the control of emissions for certain new nonroad engines or
vehicles. Section 209(e)(2) of the Act requires the Administrator to
grant California authorization to enforce state standards for new
nonroad engines or vehicles which are not listed under section
209(e)(1), subject to certain restrictions. On July 20, 1994, EPA
promulgated a regulation that sets forth, among other things, the
criteria, as found in section 209(e)(2), by which EPA must consider any
California authorization requests for new nonroad engines or vehicle
emission standards. The regulations found at 40 CFR part 85, subpart Q,
Sec.  85.1605 provides:
    (a) The Administrator shall grant the authorization if California
determines that its standards will be, in the aggregate, at least as
protective of public health and welfare as applicable Federal
standards.
    (b) The authorization shall not be granted if the Administrator
finds that:
    (1) The determination of California is arbitrary and capricious;
    (2) California does not need such California standards to meet
compelling and extraordinary conditions; or
    (3) California standards and accompanying enforcement procedures
are not consistent with section 209.
    As stated in the preamble to the section 209(e) rule, EPA has
interpreted the requirement that ``California standards and
accompanying enforcement procedures are not consistent with section
209'' to mean that California standards and accompanying enforcement
procedures must be consistent with section 209(a), section 209(e)(1),
and section 209(b)(1)(C), as EPA has interpreted that subsection in the
context of motor vehicle waivers.\2\ In order to be consistent with
section 209(a), California's nonroad standards and enforcement
procedures must not apply to new motor vehicles or new motor vehicle
engines. Secondly, California's nonroad standards and enforcement
procedures must be consistent with section 209(e)(1), which identifies
the categories permanently preempted from state regulation.
---------------------------------------------------------------------------

    \2\ See 59 FR 36969, 36983 (July 20, 1994).
---------------------------------------------------------------------------

    Finally, because California's nonroad standards and enforcement
procedures must be consistent with section 209(b)(1)(C), EPA will
review nonroad authorization requests under the same ``consistency''
criteria that are applied to motor vehicle waiver requests. Under
section 209(b)(1)(C), the Administrator shall not grant California a
motor vehicle waiver if he finds that California ``standards and
accompanying enforcement procedures are not consistent with section
202(a)'' of the Act. Previous decisions granting waivers of Federal
preemption for motor vehicles have stated that State standards are
inconsistent with section 202(a) if there is inadequate lead time to
permit the development of the necessary technology giving appropriate
consideration to the cost of compliance within that time period or if
the Federal and State test procedures impose inconsistent certification
requirements.
    Congress further directed EPA to ``give appropriate consideration
to safety factors (including the potential increased risk of burn or
fire) associated with compliance with the California standard'' when
considering any request from California to authorize the state to adopt
or enforce standards or other requirements relating to the control of
emission from new non-road spark-ignition engines smaller than 50
horsepower.\3\
---------------------------------------------------------------------------

    \3\ See Fiscal Year 2004 Omnibus Appropriations Act (Pub. L.
108-109 division G section 428).
---------------------------------------------------------------------------

    CARB determined that its SORE standards do not cause California's
standards, in the aggregate, to be less protective of public health and
welfare than the applicable Federal standards. No information has been
submitted to demonstrate that California's standards, in the aggregate,
to be less protective than the applicable Federal standards. Thus, EPA
cannot make a finding that CARB's determination that its SORE standards
are, in the aggregate, at least as protective of public health and
welfare as applicable Federal standards to be arbitrary and capricious.
    CARB has continually demonstrated the existence of compelling and
extraordinary conditions justifying the need for its nonroad pollution
control program, which includes the SORE regulations. No information
has been submitted to demonstrate that California no longer has a
compelling and extraordinary need for its own program. Therefore, I
agree that California continues to have compelling and extraordinary
conditions, thus I cannot deny the authorization on the basis of the
lack of compelling and extraordinary conditions.
    CARB has determined that its SORE regulations are not inconsistent
with section 209(a)--they do not regulate new motor vehicles or new
motor vehicle engines. No information has been submitted opposing this
determination. Therefore, I agree that California's SORE regulations
are consistent with section 209(a).
    CARB has determined that its SORE regulations are not inconsistent
with section 209(e)(1)--they do not regulate new engines which are used
in construction equipment or vehicles or used in farm equipment or
vehicles which are smaller than 175 horsepower. No information has been
submitted opposing this determination. As explained in the Decision
Document, pressure washers are included in CARB's SORE regulation and
are found not to be inconsistent with section 209(e)(1).
    CARB has determined that its SORE regulations are not inconsistent
with section 209(b)(1)(C) as EPA has implemented that subsection in the
context of motor vehicles. CARB has determined that it has provided
adequate lead time to permit the development of the necessary
technology giving appropriate consideration to the cost of compliance
within that time period. Comment was received stating that ``phase-in
flexibility'' was required by equipment manufacturers in order to
successfully transition into model years where new emission standards
apply. As explained in the Decision Document EPA believes that
California has adequately addressed this concern. No information was
submitted to suggest that CARB's certification requirements, including
test procedures, are inconsistent with applicable federal certification
requirements. Therefore I cannot find that CARB's SORE regulations are
inconsistent with section 202(a).
    As explained in the Decision Document, EPA has considered safety
factors, including the potential increased risk of burn or fire, both
in the context of satisfying the statutory criteria of section 209(e)
and in the context of the language in the 2004 Omnibus Appropriation
Act. In either context, EPA finds that issues of safety risks have been
adequately addressed by California and safety factors do not prevent
EPA from authorizing California's regulations.
    EPA agrees with all CARB findings with regard to the provisions
listed. Additionally, no information was presented to EPA by any party
which would demonstrate that California did not meet the burden of
satisfying the statutory criteria of section 209(e).
    For these reasons, EPA authorizes California to enforce the SORE
regulations.
    My decision will affect not only persons in California but also the
manufacturers outside the State who must comply with California's
requirements in order to produce nonroad engines and vehicles for sale
in California. For this reason, I hereby

determine and find that this is a final action of national
applicability.
    Under section 307(b)(1) of the Act, judicial review of this final
action may be sought only in the United States Court of Appeals for the
District of Columbia Circuit. Petitions for review must be filed by
February 13, 2007. Under section 307(b)(2) of the Act, judicial review
of this final action may not be obtained in subsequent enforcement
proceedings.
    As with past authorization decisions, this action is not a rule as
defined by Executive Order 12866. Therefore, it is exempt from review
by the Office of Management and Budget as required for rules and
regulations by Executive Order 12866.
    In addition, this action is not a rule as defined in the Regulatory
Flexibility Act, 5 U.S.C. 601(2). Therefore, EPA has not prepared a
supporting regulatory flexibility analysis addressing the impact of
this action on small business entities.
    Finally, the Administrator has delegated the authority to make
determinations regarding authorizations under section 209(e) of the Act
to the Assistant Administrator for Air and Radiation.

    Dated: December 11, 2006.
William L. Wehrum,
Acting Assistant Administrator for Air and Radiation.
 [FR Doc. E6-21378 Filed 12-14-06; 8:45 am]

BILLING CODE 6560-50-P