[Federal Register Volume 81, Number 182 (Tuesday, September 20, 2016)]
[Proposed Rules]
[Pages 64364-64368]
[FR Doc No: 2016-22563]

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SECURITIES AND EXCHANGE COMMISSION

17 CFR Chapter II

 [Release Nos. 33-10209, 34-78845, 39-2511, IA-4530, IC-32263; File No.
S7-21-16]

List of Rules To Be Reviewed Pursuant to the Regulatory
Flexibility Act

AGENCY: Securities and Exchange Commission.

ACTION: Publication of list of rules scheduled for review.

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SUMMARY: The Securities and Exchange Commission is publishing a list of
rules to be reviewed pursuant to Section 610 of the Regulatory
Flexibility Act. The list is published to provide the public with
notice that these rules are scheduled for review by the agency and to
invite public comment on whether the rules should be continued without
change, or should be amended or rescinded to minimize any significant
economic impact of the rules upon a substantial number of such small
entities.

DATES: Comments should be submitted by October 20, 2016.

ADDRESSES: Comments may be submitted by any of the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/other.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number [S7-21-16] on the subject line; or
     Use the Federal eRulemaking Portal (http://www.regulations.gov). Follow the instructions for submitting comments.

Paper Comments

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

All submissions should refer to File No. S7-21-16. This file number
should be included on the subject line if email is used. To help us
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/other.shtml). Comments also
are 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.
All comments received will be posted without change; we do not edit
personal identifying information from submissions. You should submit
only information that you wish to make available publicly.

FOR FURTHER INFORMATION CONTACT: Anne Sullivan, Office of the General
Counsel,<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: The Regulatory Flexibility Act (``RFA''),
codified at 5 U.S.C. 600-611, requires an agency to review its rules
that have

a significant economic impact upon a substantial number of small
entities within ten years of the publication of such rules as final
rules. 5 U.S.C. 610(a). The purpose of the review is ``to determine
whether such rules should be continued without change, or should be
amended or rescinded . . . to minimize any significant economic impact
of the rules upon a substantial number of such small entities.'' 5
U.S.C. 610(a). The RFA sets forth specific considerations that must be
addressed in the review of each rule:
     The continued need for the rule;
     the nature of complaints or comments received concerning
the rule from the public;
     the complexity of the rule;
     the extent to which the rule overlaps, duplicates or
conflicts with other federal rules, and, to the extent feasible, with
state and local governmental rules; and
     the length of time since the rule has been evaluated or
the degree to which technology, economic conditions, or other factors
have changed in the area affected by the rule. 5 U.S.C. 610(c).
    The Securities and Exchange Commission, as a matter of policy,
reviews all final rules that it published for notice and comment to
assess not only their continued compliance with the RFA, but also to
assess generally their continued utility. When the Commission
implemented the Act in 1980, it stated that it ``intend[ed] to conduct
a broader review [than that required by the RFA], with a view to
identifying those rules in need of modification or even rescission.''
Securities Act Release No. 6302 (Mar. 20, 1981), 46 FR 19251 (Mar. 30,
1981). The list below is therefore broader than that required by the
RFA, and may include rules that do not have a significant economic
impact on a substantial number of small entities. Where the Commission
has previously made a determination of a rule's impact on small
businesses, the determination is noted on the list.
    The Commission particularly solicits public comment on whether the
rules listed below affect small businesses in new or different ways
than when they were first adopted. The rules and forms listed below are
scheduled for review by staff of the Commission during the next 12
months. The list includes 11 rules adopted by the Commission in 2005.
    Title: XBRL Voluntary Financial Reporting Program on the EDGAR
System.
    Citation: 17 CFR 229.601; 17 CFR 232.401; 17 CFR 232.402; 17 CFR
232.11; 17 CFR 232.305; 17 CFR 240.13a-14; 17 CFR 240.15d-14; 17 CFR
249.220f; 17 CFR 249.306; 17 CFR 270.8b-1; 17 CFR 270.8b-2; 17 CFR
270.8b-33; and 17 CFR 270.30a-2.
    Authority: 15 U.S.C. 77c, 77d, 77e, 77f, 77g, 77h, 77j, 77k, 77s,
77s(a), 77z-2, 77z-3, 77aa(25), 77aa(26), 77ddd, 77eee, 77ggg, 77hhh,
77iii, 77jjj, 77nnn, 77sss, 77sss(a), 77ttt, 78c, 78c(b), 78d, 78e,
78f, 78g, 78i, 78j, 78j-1, 78k, 78k-1, 78l, 78m, 78n, 78o, 78o(d), 78p,
78q, 78s, 78u-5, 78w, 78w(a), 78x, 78ll, 78ll(d), 78mm, 79e, 79j, 79n,
79q, 79t, 79t(a), 80a-1, 80a-8, 80a-9, 80a-20, 80a-23, 80a-29, 80a-30,
80a-31(c), 80a-34, 80a-37, 80a-38(a), 80a-39, 80b-3, 80b-4, 80b-11, and
7201 et seq.; and 18 U.S.C. 1350.
    Description: The amendments enable registrants to submit
voluntarily supplemental tagged financial information using the
eXtensible Business Reporting Language (XBRL) format as exhibits to
specified EDGAR filings under the Securities Exchange Act of 1934
(``Exchange Act'') and the Investment Company Act of 1940. Registrants
choosing to participate in the voluntary program also will continue to
file their financial information in HTML or ASCII format, as currently
required. To participate in the program, volunteers are required to
submit their XBRL formatted information in accordance with the
amendments. The voluntary program is intended to help the Commission
evaluate the usefulness of data tagging and XBRL to registrants,
investors, the Commission and the marketplace.
    Prior Commission Determination Under 5 U.S.C. 601: A Final
Regulatory Flexibility Analysis was prepared in accordance with 5
U.S.C. 604 in conjunction with the Commission's adoption of Release No.
33-8529 (Feb. 3, 2005). The Commission considered comments received on
the Initial Regulatory Flexibility Analysis in the proposing release,
Release No. 33-8496 (Sept. 27, 2004), at that time.
* * * * *
    Title: Mutual Fund Redemption Fees, request for additional comment.
    Citation: 17 CFR 270.22c-2; 17 CFR 270.11a-3.
    Authority: 15 U.S.C. 80a-6(c), 80a-11(a), 80a-22(c) and 80a-37(a).
    Description: The Commission adopted a new rule that allows
registered open-end investment companies (``funds'') to impose a
redemption fee, not to exceed two percent of the amount redeemed, to be
retained by the fund. The redemption fee is intended to allow funds to
recoup some of the direct and indirect costs incurred as a result of
short-term trading strategies, such as market timing. The new rule also
requires most funds to enter into written agreements with
intermediaries (such as broker-dealers and retirement plan
administrators) that hold shares on behalf of other investors, under
which the intermediaries must agree to provide funds with certain
shareholder identity and transaction information at the request of the
fund and carry out certain instructions from the fund.
    Prior Commission Determination Under 5 U.S.C. 610: A Final
Regulatory Flexibility Analysis was prepared in accordance with 5
U.S.C. 604 in conjunction with the Commission's adoption of Release No.
IC-26782 (Mar. 11, 2005). The Commission considered comments received
on the Initial Regulatory Flexibility Analysis in the proposing
release, Release No. IC-26375A (Mar. 5, 2004), at that time.
* * * * *
    Title: First-Time Application of International Financial Reporting
Standards.
    Citation: 17 CFR 249.220f.
    Authority: 15 U.S.C. 78a et seq., and 7201 et seq.; and 18 U.S.C.
1350.
    Description: The Commission adopted amendments to Form 20-F to
provide a one-time accommodation relating to financial statements
prepared under International Financial Reporting Standards (``IFRS'')
for foreign private issuers registered with the SEC. This accommodation
applies to foreign private issuers that adopt IFRS prior to or for the
first financial year starting on or after January 1, 2007. The
accommodation permits eligible foreign private issuers for their first
year of reporting under IFRS to file two years rather than three years
of statements of income, changes in shareholders' equity and cash flows
prepared in accordance with IFRS, with appropriate related disclosure.
In addition, the Commission amended Form 20-F to require certain
disclosures of all foreign private issuers that change their basis of
accounting to IFRS.
    Prior Commission Determination Under 5 U.S.C. 601: Pursuant to
Section 605(b) of the Regulatory Flexibility Act, the Commission
certified that amending Exchange Act Form 20-F would not have a
significant economic impact on a substantial number of small entities.
The certification was incorporated in the proposing release, Release
No. 33-8397 (Mar. 11, 2004). As stated in the adopting release, Release
No. 33-8567 (Apr. 12, 2005), the Commission received no comments
concerning the impact on small entities or the Regulatory Flexibility
Act Certification.
* * * * *

    Title: Regulation NMS: Final Rules and Amendments to Joint Industry
Plans.
    Citation: 17 CFR 200.30-3, 17 CFR 200.800, 17 CFR 201.101, 17 CFR
230.144, 17 CFR 240.0-10, 17 CFR 240.3a51-1, 17 CFR 240.3b-16, 17 CFR
240.10a-1, 17 CFR 240.10b-10, 17 CFR 10b-18, 17 CFR 240.11Aa2-1-Ac1-6,
17 CFR 240.12a-7, 17 CFR 240.12f-1, 17 CFR 240.12f-2, 17 CFR 240.15b9-
1, 17 CFR 240.15c2-11, 17 CFR 240.19c-3, 17 CFR 240.19c-4, 17 CFR
240.31, 17 CFR 242.100, 17 CFR 242.300, 17 CFR 242.301, 17 CFR 242.600-
612, 17 CFR 249.1001, 17 CFR 270.17a-7.
    Authority: 15 U.S.C. 78b, 78c(b), 78e, 78f, 78k-1, 78o, 78o-3,
78q(a) and (b), 78s; 78w(a), and 78mm, and Rules 11Aa3-2(b)(2) and
11Aa3-2(c)(1) thereunder, 17 CFR 240.11Aa3-2(b)(2) and 17 CFR
240.11Aa3-2(c)(1).
    Description: The Commission adopted rules under Regulation NMS and
two amendments to the joint industry plans for disseminating market
information. The new rules were designed to modernize and strengthen
the regulatory structure of the U.S. equity markets. The ``Order
Protection Rule'' requires trading centers to establish, maintain, and
enforce written policies and procedures reasonably designed to prevent
the execution of trades at prices inferior to protected quotations
displayed by other trading centers, subject to an applicable exception.
The ``Access Rule'' requires fair and non-discriminatory access to
quotations, establishes a limit on access fees to harmonize the pricing
of quotations across different trading centers, and requires each
national securities exchange and national securities association to
adopt, maintain, and enforce written rules that prohibit their members
from engaging in a pattern or practice of displaying quotations that
lock or cross automated quotations. The ``Sub-Penny Rule'' prohibits
market participants from accepting, ranking, or displaying orders,
quotations, or indications of interest in a pricing increment smaller
than a penny, except for orders, quotations, or indications of interest
that are priced at less than $1.00 per share. The Commission also
adopted amendments to the ``Market Data Rules'' that updated the
requirements for consolidating, distributing, and displaying market
information, as well as amendments to the joint industry plans for
disseminating market information that modified the formulas for
allocating plan revenues (the ``Allocation Amendment'') and broadened
participation in plan governance (the ``Governance Amendment'').
Finally, the Commission redesignated the national market system rules
previously adopted under Section 11A of the Exchange Act.
    Prior Commission Determination Under 5 U.S.C. 610: With respect to
the Order Protection Rule, pursuant to Section 605(b) of the Regulatory
Flexibility Act, the Commission certified that the rule would not have
a significant economic impact on a substantial number of small
entities. This certification was incorporated into the reproposing
release.\1\ As stated in Release No. 34-51808 (June 9, 2005) (adopting
release), the Commission received no comments concerning the impact on
small entities or the Regulatory Flexibility Act Certification. With
respect to the Access Rule (Rule 610 and the amendments to Rule 301 of
Regulation ATS), pursuant to Section 605(b) of the Regulatory
Flexibility Act, the Commission certified that the rule would not have
a significant economic impact on a substantial number of small
entities. This certification was incorporated into the reproposing
release. As stated in the adopting release, the Commission considered
one comment it received regarding the certification in the reproposing
release with respect to the Access Rule at that time. With respect to
the Sub-Penny Rule, a Final Regulatory Flexibility Analysis was
prepared in accordance with 5 U.S.C. 604 in conjunction with the
adopting release. As stated in the adopting release, the Commission
received no comments addressing the Initial Regulatory Flexibility
Analysis prepared in the proposing release or the substantially
identical one set forth in the reproposing release. With respect to the
Allocation Amendment, pursuant to Section 605(b) of the Regulatory
Flexibility Act, the Commission certified that the rule would not have
a significant economic impact on a substantial number of small
entities. This certification was incorporated into the reproposing
release. As stated in the adopting release, the Commission received no
comments concerning the impact on small entities or the Regulatory
Flexibility Act Certification. Finally, with respect to the Governance
Amendment (amending Exchange Act Rules 11Aa3-1 and 11Ac-12 by
redesignating them as Rules 601 and 603), a Final Regulatory
Flexibility Analysis was prepared in accordance with 5 U.S.C. 604 in
conjunction with the Adopting Release. As stated in the adopting
release, the Commission received no comments addressing the Initial
Regulatory Flexibility Analysis prepared in the proposing release or
the substantially identical one set forth in the reproposing release.
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    \1\ The Commission originally proposed Regulation NMS in
February 2004, Release No. 34-49325 (Feb. 26, 2004) (proposing
release). It issued a supplemental request for comment in May 2004.
Release No. 34-49749 (May 20, 2004). On December 16, 2004, the
Commission reproposed Regulation NMS in its entirety for public
comment. Release No. 34-50870 (Dec. 16, 2004) (reproposing release).
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* * * * *
    Title: Amendments to the Penny Stock Rules.
    Citation: 17 CFR 240.3a51-1, 240.15g-2, 240.15g-9, and 240.15g-100.
    Authority: 15 U.S.C. 78c(a)(51)(B), 78c(b), 78o(c), 78o(g), and
78w(a).
    Description: The Commission amended the definition of ``penny
stock'' as well as the requirements for providing certain information
to penny stock customers. The amendments were designed to address
market changes, evolving communications technology and legislative
developments.
    Prior Commission Determination Under 5 U.S.C. 610: Pursuant to
Section 605(b) of the Regulatory Flexibility Act, the Commission
certified that the rule would not have a significant economic impact on
a substantial number of small entities. This certification was
incorporated into the proposing release, Release No. 34-49037 (Jan. 8,
2004). As stated in the adopting release, Release No. 34-51983 (July 7,
2005), the Commission received no comments concerning the impact on
small entities or the Regulatory Flexibility Act Certification.
* * * * *
    Title: Removal from Listing and Registration of Securities Pursuant
to Section 12(d) of the Securities Exchange Act of 1934.
    Citation: 17 CFR 232.101; 17 CFR 240.12d2-2; 17 CFR 240.19d-1; 17
CFR 249.25.
    Authority: 15 U.S.C. 77c, 77d, 77f, 77g, 77h, 77j, 77s, 77s(a),
77sss(a), 77z-2, 77z-3, 77eee, 77ggg, 77nnn, 77sss, 77ttt, 78a, 78c,
78c(b), 78d, 78e, 78f, 78g, 78i, 78j, 78j-1, 78k, 78k-1, 78l, 78m, 78n,
78o, 78o(d), 78p, 78q, 78s, 78u-5, 78w, 78w(a), 78x, 78ll, 78ll(d),
78mm, 79q, 79t, 79t(a), 80a-8, 80a-20, 80a-23, 80a-29, 80a-30, 80a-37,
80b-3, 80b-4, 80b-11, and 7201 et seq.; and 18 U.S.C. 1350.
    Description: The Commission adopted amendments to its rules and
Form 25 to streamline the procedures for removing from listing, and
withdrawing from registration, securities under Section 12(b) of the
Exchange Act. The final rules require all issuers and national
securities exchanges seeking to delist and/or deregister a security in
accordance with the rules of an exchange and the Commission to file the

amended Form 25 in an electronic format with the Commission on the
EDGAR database. The final rules also provide that Form 25 serves as an
exchange's notice to the Commission under Section 19(d) of the Exchange
Act. Finally, the final rules exempt, on a permanent basis,
standardized options and security futures products traded on a national
securities exchange from Section 12(d) of the Exchange Act.
    Prior Commission Determination Under 5 U.S.C. 601: Pursuant to
Section 605(b) of the Regulatory Flexibility Act, the Commission
certified that amending Rule 12d2-2 and Rule 25 would not have a
significant impact on a substantial number of small entities. The
certification was incorporated in the proposing release, Release No.
34-49858 (June 15, 2004). As stated in the adopting release, Release
No. 34-52029 (July 14, 2005), the Commission received no comments
concerning the impact on small entities or the Regulatory Flexibility
Act Certification.
* * * * *
    Title: Use of Form S-8, Form 8-K, and Form 20-F by Shell Companies.
    Citation: 17 CFR 230.405; 239.16b; 240.12b-2; 240.13a-14; 240.13a-
19; 240.15d-14; 240.15d-19; 249.220f; 249.308; 249.308a; and 249.310.
    Authority: 15 U.S.C. 77b, 77c, 77d, 77f, 77g, 77h, 77j, 77r, 77s,
77z-2, 77z-3, 77eee, 77ggg, 77nnn, 77sss, 77ttt, 78a et seq., 78c, 78d,
78e, 78f, 78g, 78i, 78j, 78j-1, 78k, 78k-1, 78l, 78m, 78n, 78o, 78o(d),
78p, 78q, 78s, 78t, 78u-5, 78w, 78w(a), 78x, 78ll, 78ll(d), 78mm, 78q,
78s, 78u-5, 78w, 78x, 79e, 79f, 79g, 79j, 79l, 79m, 79n, 79q, 79t, 80a-
8, 80a-20, 80a-23, 80a-24, 80a-26, 80a-28, 80a-29, 80a-30, 80a-37, 80b-
3, 80b-4, 80b-11, 7201 et seq., and 18 U.S.C. 1350.
    Description: The Commission adopted rules and rule amendments
relating to filings by reporting shell companies. The rule and rule
amendments define a ``shell company'' as a registrant with no or
nominal operations and either no or nominal assets, assets consisting
solely of cash and cash equivalents, or assets consisting of any amount
of cash and cash equivalents and nominal other assets. The rules and
rule amendments prohibit the use of Form S-8 under the Securities Act
of 1933 (``Securities Act'') by shell companies. In addition, they
require a shell company that is reporting an event that causes it to
cease being a shell company to disclose the same type of information
that it would be required to provide in registering a class of
securities under the Exchange Act. These provisions are intended to
protect investors by deterring fraud and abuse in our securities
markets through the use of reporting shell companies.
    Prior Commission Determination Under 5 U.S.C. 610: A Final
Regulatory Flexibility Analysis was prepared in accordance with 5
U.S.C. 604 in conjunction with the adoption of Release No. 33-8587
(July 15, 2005). The Commission requested comment on the Initial
Regulatory Flexibility Analysis prepared in Release No. 33-8407 (Apr.
15, 2004), but as stated in the adopting release, received no comments
in response to this request.
* * * * *
    Title: Rulemaking for EDGAR System.
    Citation: 17 CFR 232.11; 17 CFR 232.101; 17 CFR 232.102; 17 CFR
232.201; 17 CFR 232.311; 17 CFR 232.313; 17 CFR 239.64; 17 CFR 249.444;
17 CFR 259.603; 17 CFR 269.8; 17 CFR 274.403; 17 CFR 239.65; 17 CFR
249.447; 17 CFR 259.604; 17 CFR 269.10; 17 CFR 274.404.
    Authority: 15 U.S.C. 77f, 77g, 77h, 77j, 77s(a), 77sss, 78c, 78l,
78m, 78n, 78o(d), 78w(a), 78ll, 79c, 79e, 79f, 79g, 79j, 79l, 79m, 79n,
79q, 79t, 80a-8, 80a- 29, 80a-30, and 80a-37.
    Description: The Commission adopted amendments requiring that
certain open-end management investment companies and insurance company
separate accounts identify in their Electronic Data Gathering Analysis,
and Retrieval (EDGAR) submissions information relating to their series
and classes (or contracts, in the case of separate accounts). In
addition, the Commission added two investment company filings to the
list of those that must be filed electronically and made several minor
and technical amendments to rules governing the electronic filings
through EDGAR.
    Prior Commission Determination Under 5 U.S.C. 610: A Final
Regulatory Flexibility Analysis was prepared in accordance with 5
U.S.C. 604 in conjunction with the Commission's adoption of Release No.
IC-26990 (July 18, 2005). The Commission solicited comment on the
Initial Regulatory Flexibility Analysis prepared in the proposing
release, Release No. IC-26388 (Mar. 6, 2004), but, as stated in the
adopting release, received no comments on that analysis.
* * * * *
    Title: Securities Offering Reform.
    Citation: 17 CFR 200.30-1; 17 CFR 229.512; 17 CFR 230.134; 17 CFR
230.137; 17 CFR 230.138; 17 CFR 230.139; 17 CFR 230.153; 17 CFR
230.158; 17 CFR 230.159; 17 CFR 230.159A; 17 CFR 230.163; 17 CFR
230.163A; 17 CFR 230.164; 17 CFR 230.168; 17 CFR 230.169; 17 CFR
230.172; 17 CFR 230.173; 17 CFR 230.174; 17 CFR 230.401; 17 CFR
230.405; 17 CFR 230.408; 17 CFR 230.412; 17 CFR 230.413; 17 CFR
230.415; 17 CFR 230.418; 17 CFR 230.424; 17 CFR 230.426; 17 CFR
230.430A; 17 CFR 230.430B; 17 CFR 230.430C; 17 CFR 230.433; 17 CFR
230.439; 17 CFR 230.456; 17 CFR 230.457; 17 CFR 230.462; 17 CFR
230.473; 17 CFR 230.497; 17 CFR 230.902; 17 CFR 239.11; 17 CFR 239.13;
17 CFR 239.25; 17 CFR 239.31; 17 CFR 239.33; 17 CFR 239.34; 17 CFR
240.14a-2; 17 CFR 243.100; 17 CFR 249.210; 17 CFR 249.220f; 17 CFR
249.308a; 17 CFR 249.310; 17 CFR 239.14; and 17 CFR 274.11a-1.
    Authority: 15 U.S.C. 77b, 77c, 77d, 77e, 77f, 77g, 77h, 77j, 77k,
77s, 77o, 77r, 77s, 77sss, 77z-2, 77z-3, 77aa(25), 77aa(26), 77ddd,
77eee, 77ggg, 77hhh, 77iii, 77jjj, 77nnn, 77sss, 77ttt, 78a, 78c,
78c(b), 78d, 78d-1, 78d-2, 78e, 78f, 78g, 78i, 78j, 78j-1, 78k, 78k-1,
78l, 78m, 78n, 78o, 78o(d), 78p, 78q, 78s, 78t, 78u-5, 78w, 78w(a);
78x, 78ll, 78ll(d), 78mm,79e, 79f, 79g, 79j, 79l, 79m, 79n, 79q, 79t,
80a-2(a), 80a-3, 80a-8, 80a-9, 80a-10, 80a-13, 80a-20, 80a-23, 80a-24,
80a-26, 80a-28, 80a-29, 80a-30, 80a-31(c), 80a-37, 80a-38(a), 80a-39,
80b-3, 80b-4, 80b-11, 7201, 7202, and 18 U.S.C. 1350.
    Description: The Commission adopted rules to modify and advance
significantly the registration, communications, and offering processes
under the Securities Act. The rules eliminate unnecessary and outmoded
restrictions on offerings. In addition, the rules provide more timely
investment information to investors without mandating delays in the
offering process that the Commission believes would be inconsistent
with the needs of issuers for timely access to capital. The rules also
continue the Commission's long-term efforts toward integrating
disclosure and processes under the Securities Act and the Exchange Act.
The rules further these goals by addressing communications related to
registered securities offerings, delivery of information to investors,
and procedural aspects of the offering and capital formation processes.
    Prior Commission Determination Under 5 U.S.C. 601: A Final
Regulatory Flexibility Analysis was prepared in accordance with 5
U.S.C. 604 in conjunction with the Commission's adoption of Release No.
33-8591 (July 19, 2005). The Commission considered comments received on
the Initial Regulatory Flexibility Analysis in the proposing release,
Release No. 33-8501 (Nov. 3, 2004), at that time.
* * * * *

    Title: Ownership Reports and Trading by Officers, Directors and
Principal Security Holders.
    Citation: 17 CFR 229.405; 17 CFR 240.16b-3; and 17 CFR 240.16b-7.
    Authority: 15 U.S.C. 77c, 77d, 77e, 77f, 77g, 77h, 77j, 77k, 77s,
77z-2, 77z-3, 77aa(25),77aa(26), 77ddd, 77eee, 77ggg, 77hhh, 77iii,
77jjj, 77nnn, 77sss, 77ttt, 78c, 78d, 78e, 78f, 78g, 78i, 78j, 78j-1,
78k, 78k-1, 78l, 78m,78n, 78o, 78p, 78q, 78s, 78u-5, 78w, 78x, 78ll,
78mm, 79e, 79j, 79n, 79q, 79t, 80a-8, 80a-9, 80a-20, 80a-23, 80a-29,
80a-30, 80a-31(c), 80a-37, 80a-38(a), 80a-39, 80b-3, 80b-4, 80b-11, and
7201 et seq.; and 18 U.S.C. 1350.
    Description: The Commission adopted amendments to two rules that
exempt certain transactions from the private right of action to recover
short-swing profit provided by Section 16(b) of the Exchange Act. The
amendments were intended to clarify the exemptive scope of these rules,
consistent with statements in previous Commission releases. The
Commission also amended Item 405 of Regulation S-K to harmonize this
item with the two-business day Form 4 due date and mandated electronic
filing and Web site posting of Section 16 reports.
    Prior Commission Determination Under 5 U.S.C. 601: A Final
Regulatory Flexibility Analysis was prepared in accordance with 5
U.S.C. 604 in conjunction with the Commission's adoption of Release No.
33-8600 (Aug. 3, 2005). The Commission considered comments received on
the Initial Regulatory Flexibility Analysis in the proposing release,
Release No. 34-49895 (June 21, 2004), at that time.
* * * * *
    Title: Revisions to Accelerated Filer Definition and Accelerated
Deadlines for Filing Periodic Reports.
    Citation: 17 CFR 210.3-01; 17 CFR 210.3-09; 17 CFR 210.3-12; 17 CFR
229.101; 17 CFR 240.12b-2; 17 CFR 240.13a-10; 17 CFR 240.15d-10; 17 CFR
249.308a; 17 CFR 249.310; and 17 CFR 249.220f.
    Authority: 15 U.S.C. 77c, 77d, 77e, 77f, 77g, 77h, 77j, 77k, 77s,
77z-2, 77z-3, 77aa(25), 77aa(26), 77ddd, 77eee, 77ggg, 77hhh, 77iii,
77jjj, 77nnn, 77sss, 77ttt, 78a, 78c, 78d, 78e, 78f, 78g, 78i, 78j,
78j-1, 78k, 78k-1, 78l, 78m, 78n, 78o, 78o(d), 78q, 78s, 78u-5, 78w,
78w(a), 78x, 78ll, 78mm, 79e, 79e(b), 79j, 79j(a), 79n, 79q, 79t,
79t(a), 80a-8, 80a-9, 80a-20, 80a-23, 80a-29, 80a-30, 80a-31, 80a-
31(c), 80a-37, 80a-37(a), 80a-38(a), 80a-39, 80b-3, 80b-4, 80b-11,
7201, 7202, 7262; and 18 U.S.C. 1350.
    Description: The Commission adopted amendments to the accelerated
filing deadlines that apply to periodic reports so that a ``large
accelerated filer'' (an Exchange Act reporting company with a worldwide
market value of outstanding voting and non-voting common equity held by
non-affiliates of $700 million or more) became subject to a 60-day Form
10-K annual report filing deadline, beginning with the annual report
filed for its first fiscal year ending on or after December 15, 2006.
Prior to that date, large accelerated filers were subject to a 75-day
annual report deadline. Under the amendments, accelerated filers and
large accelerated filers continue to be required to file their Form 10-
Q quarterly reports under a 40-day deadline, rather than the 35-day
deadline that was scheduled to apply under the previously existing
rules. Further, the amendments revise the definition of the term
``accelerated filer'' to permit an accelerated filer that has voting
and non-voting common equity held by non-affiliates of less than $50
million to exit accelerated filer status at the end of the fiscal year
in which its equity falls below $50 million and to file its annual
report for that year and subsequent periodic reports on a non-
accelerated basis. Finally, the amendments permit a large accelerated
filer that has voting and non-voting common equity held by non-
affiliates of less than $500 million to exit large accelerated filer
status at the end of the fiscal year in which its equity falls below
$500 million and to file its annual report for that year and subsequent
periodic reports as an accelerated filer, or a non-accelerated filer,
as appropriate.
    Prior Commission Determination Under 5 U.S.C. 601: A Final
Regulatory Flexibility Analysis was prepared in accordance with 5
U.S.C. 604 in conjunction with the Commission's adoption of Release No.
33-8644 (Dec. 21, 2005). The Commission considered comments received on
the Initial Regulatory Flexibility Analysis in the proposing release,
Release No. 33-8617 (Sept. 22, 2005), at that time.

    By the Commission.

    Dated: September 15, 2016.
Brent J. Fields,
Secretary.
[FR Doc. 2016-22563 Filed 9-19-16; 8:45 am]
BILLING CODE 8011-01-P


PUBLIC HEARING ATTENDANCE LIST Interstate Air Quality Proposed Rule Utility Mercury Reduction Proposed Rule Wyndham Philadelphia at Franklin Plaza 17th and Race Streets Philadelphia, PA 19103 February 26, 2004 8: 00 a. m. to 10: 00 p. m.

NAME / EMAIL AFFILIATION / ADDRESS PHONE RULE Doug Austin daustin@ mde. state. md. us Maryland Department of Environment 410 537 4218 IAQR David Bacher david. bacher@ nrgenergy. com NRG Energy P. O. Box 408 Millsborro, DE 19066 302 540 0327 Both Fred G. Baur fgbaur@ aol. com Consuit 1212 Polo Run Dr.

Yardley, PA 19067 215 757 8780 Susan Boehme sboehme@ nyas. org 2 E. 63rd St.

New York, NY 10021 212 838 0230 Ext. 403 Gregg Gnipp gregg. gnipp@ paonline. com ARIPPA 717 763 7635 Both Hugh Gorman Michigan Tech University 215 840 5447 Gary Helm Conectiv 302 451 5077 Both Yukiko Icluishima (?) University of Pennsylvania PUBLIC HEARING ATTENDANCE LIST Interstate Air Quality Proposed Rule Utility Mercury Reduction Proposed Rule Wyndham Philadelphia at Franklin Plaza 17th and Race Streets Philadelphia, PA 19103 February 26, 2004 8: 00 a. m. to 10: 00 p. m.

NAME / EMAIL AFFILIATION / ADDRESS PHONE RULE Naomi Ishiwata University of Pennsylvania 215 417 4170 Lanny Lunsk Retired Citizen 920 S. Fannagut St.

Philadelphia, PA 19143 215 222 3143 Mekel Marcy 65 Meadowcrest Drive Trucksville, PA 18708 570 328 1230 Dr. Patrice McSweeney patricemms@ hotmail. com 5116 N. 5th St.

Philadelphia, PA 19120 Both Mark Stehr Drexel University Catherine Territo 365 Susquehanna Ave.

Wyoming, PA 18644 570 613 0536 Erika Territo 365 Susquehanna Ave.

Wyoming, PA 18644 570 613 0536


UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

REGION III

1650 Arch Street

Philadelphia, Pennsylvania  19103-2029

February 12, 2004

David C. Ward, Manager

Environmental Safety Health & Safeguards Department

BWX Technologies, Inc.

Nuclear Products Division

P.O. Box 785

Lynchburg, VA  24505-0785

Dear Mr. Ward:

	We have reviewed the petition submitted by BWX Technologies, Inc. (BWXT) dated February 21, 2003, for delisting of certain wastes.  The wastes which are the subject of this petition are sludges located in two on-site waste management units and wastewater (to the extent that it is classified as F006).  Specifically, the two waste management units which contain the subject sludge are Final Effluent Ponds (FEPs) Nos. 1 and 2, and the wastewater in question is the wastewater being treated in FEP No. 2 (to the extent the Virginia Department of Environmental Quality or EPA classifies these wastewaters as F006).

	The listing description for F006 is, “Wastewater treatment sludges from electroplating operations, except from the following processes...”  It is, and always has been, Agency policy that the mixture rule does not apply to the liquid in a wastewater treatment unit that manages unlisted liquid waste, even if that liquid generates a hazardous sludge that settles to the bottom of the unit.  This policy, however, does not apply if the sludge is dredged up or scoured from the bottom of the unit as a result of operation of the unit, and physically mixes with the liquid.  Since the F006 listing describes a “wastewater treatment sludge” and not a “wastewater ” as the listed waste, and in light of the above mentioned policy, EPA does not understand how the wastewater in FEP No. 2 would be considered a F006 listed waste.  We note that  the petition does not describe how or whether samples of this wastewater will be collected and analyzed, and, therefore, the petition would be considered to be seriously deficient with regard to this waste stream.  If you intend to pursue delisting of the wastewater, we need additional information explaining why you feel the F006 listing applies to the wastewater, and how you intend to collect environmental data to show that this waste should be delisted.

	In addition, please address the following questions or comments:

Waste Description

1.  In order to complete the profile of wastes entering the FEPs, please describe any unanticipated discharges to the FEPs which have occurred over the operating life of these units.

2.  Please explain the method used to estimate the volume of sludge currently residing in the FEPs.

Waste Sampling

3.  The Sludge Sampling Plan indicates that after freezing, the sample core will be sprayed with deionized water to remove the outer surface layer of ice that forms from contact with the tube.  This step appears to be unnecessary.  The FEP sludge is expected to contain water.

4.  The Sludge Sampling Plan indicates that any water from the aluminum pan (in which the frozen cores are allowed to thaw) will be decanted.  Again, this step appears to be unnecessary since the sludge is expected to contain liquid.

5.  The Sludge Sampling Plan does not describe the collection of samples to support the analysis of volatile organic compounds (VOCs).  Grab samples are typically collected for this type of analysis.  Homogenization of samples during the sample preparation phase of the plan would not be compatible with VOC analysis.

Sample Container and Equipment Preparation

6.  The Sludge Sampling Plan does not identify the type of sample containers that will be used.

7.  The Sludge Sampling Plan does not indicate which/how sample preservatives will be used, or the amount of sample preservative that will be used.

8.  The Sludge Sampling Plan does not specify maximum sample holding times.

9.  Prior to the sampling event, BWXT (or its contractor) must determine the number of sample containers that will be needed and the sample volumes to be collected.  BWXT needs to make sure that adequate waste is available for waste sample analysis, and field and laboratory control samples.

Sample Labeling

10.  The Sludge Sampling Plan did not provide information on how sample container labels, sample log sheets, chain-of-custody records, and field log books will be used to document sampling activities.  The Sludge Sampling Plan indicates only that samples will be transported after chain-of-custody forms have been completed.  The Sludge Sampling Plan needs to describe how field activities will be recorded, and what forms will be used to record information.

Sample Shipment

11.  It is recommended that a chain-of-custody seal be placed over each sample container top after the sample is collected.  At the very least, it is recommended that a chain-of- custody seal be placed over the shipping cooler lid to verify the absence of sample tampering during shipment.

12.  It is recommended that the cooler be delivered to the laboratory on the day samples are prepared (i.e., the day frozen samples are thawed and homogenized).  The Sludge Sampling Plan did not identify when coolers will be delivered to the laboratory.

Sample Analyses

13.  The petition and Sludge Sampling Plan indicate that TCLP analyses will be performed for metals and organic compounds.  It is unclear whether the TCLP extract will be analyzed for the full suite of Appendix VIII constituents (as appropriate) or only those constituents listed in 40 CFR Section 261.24.

14.  During the Phase 1 sampling event, at least one sample from FEP Nos. 1 and 2 must be analyzed using a multiple leachate testing protocol.  This protocol requires the testing of all constituents using the TCLP procedure but substituting the specified extraction fluid with, (a) distilled deionized water, and (b)an alkaline solution of sodium hydroxide with a pH between 10 and 12.

15.  The petition and Sludge Sampling Plan must be revised to include analysis of the FEP sludge samples for total sulfide.

16.  The petition and Sludge Sampling Plan must be revised to include analysis of the FEP sludge samples for total oil and grease content.

Analytical Methods

17.  The petition and the Sludge Sampling Plan must be revised to include the specific preparative, cleanup and determinative methods that will be used for all analytes.  One possible format for presenting this information is shown in the example below:

	Preparation	Cleanup	Analytical

Method	Method	Method

Total Appendix IX volatiles		5035		NA		8260B

Total Appendix IX herbicides   	8151A		3620B		8151A

TCLP Appendix IX semivolatiles	1311/3510	3640A		8270C

Detection Limits

18.  The Sludge Sampling Plan did not provide detailed information regarding analytical detection limits and is, therefore, incomplete.  Detection limits are laboratory and instrument-specific.  In order to properly evaluate the analytical methods that will be used, the laboratory needs to generate its own detection limits to assure that it meets the project DQOs with respect to sensitivity and detection.  For example, Method 6010 is probably appropriate for most of the target metals and can typically detect concentrations significantly below the delisting maximum allowable concentrations.  However, this method may not be suitable for selenium or lead if the laboratory is required to reach the delisting health-based levels.  The Sludge Sampling Plan must provide the laboratory-generated detection limits, using the methods and instruments that will be used during the actual analysis.

Data Validation

19.  The petition must include provisions specifying third party data validation for all analytical data.  Data validation should be performed in accordance with the Region III Modifications to the National Functional Guidelines for Data Review. Please refer to the list of references in the attached “Region III QAPP Preparation Checklist” for the specific data validation documents.

Quality Assurance Project Plan

20.  The petition does not include a Quality Assurance Project Plan (QAPP).  In all cases involving the collection of environmental data, both a Sampling and Analysis Plan (S/A Plan) and a QAPP must be prepared.  These two plans can be prepared either as separate plans or as one combined document.

Quality Control Samples

21.  The Sludge Sampling Plan states that one field duplicate will be collected during the field event.  This frequency must be revised so that one field duplicate is collected  for every twenty (20) samples or each sample batch, whichever is greater.

22.  The Sludge Sampling Plan must include provisions for ensuring that samples are maintained at 4 o C until they are received by the laboratory.  Temperature blanks are one way to evaluate the potential effects of sample transportation on data quality.  One temperature blank is included in each sample cooler.  Upon receipt by the laboratory, the temperature of the water in the temperature blank vial must be 4 o C, plus or minus 2 degrees.

Laboratory Quality Assurance

23.  The Sludge Sampling Plan does not specify the analytical laboratory (or laboratories) to be used for analysis of the sludge samples, nor does it contain the analytical laboratory’s QA procedures.  This requirement can be addressed by, (a) including the laboratory’s QA manual and, (b) the results of the laboratory’s most recent proficiency testing for each type of analysis that it will be performing.   However, in lieu of proficiency testing results, we will accept a current certificate of accreditation for the specified types of analyses from an organization such as NELAP (the National Environmental Laboratory Accreditation Program).

Hazardous Waste Characteristics

24.  Section XI (Conclusions), Subsection D states that, “The data to be generated will demonstrate that the FEP Sludge does not exhibit any hazardous waste characteristic.”  The sampling and analysis proposed in the petition does not address all of the hazardous waste characteristics.  Characteristics can be addressed by testing, or in some cases, by presenting other information which is sufficient to show that the subject waste could not exhibit that particular characteristic based on process knowledge.  For example, the characteristic of reactivity can be addressed in part by testing for cyanide and sulfide; however, other categories of reactivity are usually addressed through process knowledge.  If testing is not done for a particular hazardous waste characteristic, the final submission must still specifically address that characteristic, and provide information to support the conclusion that the waste does not possess the property described by the characteristic.

	In order to assist you in addressing the QAPP requirements, I am enclosing a copy of the Region III QAPP Preparation Checklist.  This document is also available electronically.  If the electronic version would be useful to you, please let me know.

	If you have any questions regarding the review comments contained in this letter, please feel free to contact me at the address above, by phone at<PHONE_NUMBER>, or by e-mail at<EMAIL_ADDRESS>

Sincerely,

David M. Friedman

Delisting Coordinator

Waste and Chemicals Management Division

EPA Region III

ATTACHMENT

CC:	John Storton (BWXT)

	Mike Jacobi

	Cynthia Nadolski

	Hassan Vakili (VADEQ)


[Federal Register Volume 76, Number 163 (Tuesday, August 23, 2011)]
[Notices]
[Pages 52729-52730]
[FR Doc No: 2011-21486]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-65149; File No. SR-Phlx-2011-89]

Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Order
Granting Approval of Proposed Rule Change Relating to Alpha Index
Options

August 17, 2011.

I. Introduction

    On June 23, 2011, NASDAQ OMX PHLX LLC (the ``Exchange'' or
``Phlx'') filed with the Securities and Exchange Commission (the
``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (the ``Act''),\1\ a proposed rule change to list
and trade options on a number of new Alpha Indexes and to amend
Exchange Rule 1001A, Position Limits, with respect to certain Alpha
Index options. The proposed rule change was published for comment in
the Federal Register on July 8, 2011.\2\ The Commission received no
comment letters on the proposed rule change. This order approves the
proposed rule change.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ See Securities Exchange Act Release No. 64788 (July 1,
2011), 76 FR 40415 (``Notice'').
---------------------------------------------------------------------------

II. Description

    On February 7, 2011, the Commission approved the Exchange's
proposed rule change to list and trade options on a number of Alpha
Indexes.\3\ Alpha Indexes measure relative total returns of one
underlying stock or exchange traded fund (``ETF'') share against
another underlying stock or ETF share underlying options which are also
traded on the Exchange (each such combination of two components is
referred to as an ``Alpha Pair''). The first component identified in an
Alpha Pair (the ``Target Component'') is measured against the second
component identified in the Alpha Pair (the ``Benchmark Component'').
Total return measures performance (rate of return) of price
appreciation plus dividends over a given evaluation period.
---------------------------------------------------------------------------

    \3\ See Securities Exchange Act Release No. 63860 (February 7,
2011), 76 FR 7888 (February 11, 2011) (SR-Phlx-2010-176).
---------------------------------------------------------------------------

    The Alpha Index options that the Commission has previously approved
for listing and trading on the Exchange are limited to specific Alpha
Indexes the Target Component of which is a single stock.\4\ The
Exchange proposes to expand the number of Alpha Indexes on which
options can be listed to include certain Alpha Indexes based on the
following Alpha Pairs: DIA/SPY, EEM/SPY, EWJ/SPY, EWZ/SPY, FXI/SPY,
GLD/SPY, IWM/SPY, QQQ/SPY, SLV/SPY, TLT/SPY, XLE/SPY and XLF/SPY. In
these Alpha Indexes, the Target Component as well as the Benchmark
Component is an ETF share. The proposed Alpha Index options will enable
investors to trade the relative performance of the market sectors
represented by the Target Components as compared with the overall
market performance represented by the Benchmark Component SPY.
---------------------------------------------------------------------------

    \4\ The Commission previously approved the listing and trading
of options on Alpha Indexes based on the following Alpha Pairs:
AAPL/SPY, AMZN/SPY, CSCO/SPY, F/SPY, GE/SPY, GOOG/SPY, HPQ/SPY, IBM/
SPY, INTC/SPY, KO/SPY, MRK/SPY, MSFT/SPY, ORCL/SPY, PFE/SPY, RIMM/
SPY, T/SPY, TGT/SPY, VZ/SPY and WMT/SPY. See supra note 3. In
connection with its proposed rule change to list and trade this
initial set of Alpha Index options, the Exchange represented that it
would not list Alpha Index options on any other Alpha Pairs without
filing a proposed rule change seeking Commission approval. See id.
---------------------------------------------------------------------------

    As with each initial Alpha Index option, each proposed new Alpha
Index option will meet the criteria set forth in Exchange Rule
1009A(f).\5\ Further, following the listing of these Alpha Index
options, options on each of the component securities of the Alpha Index
must continue to meet the continued listing standards set forth by
Exchange Rule 1010, Withdrawal of Approval of Underlying Securities or
Options.
---------------------------------------------------------------------------

    \5\ Rule 1009A(f) requires that options on Alpha Indexes meet
the following criteria: (1) Alpha Index options will be A.M.-
settled. The exercise settlement value will be based upon the
opening prices of the individual stock or ETF from the primary
listing market on the last trading day prior to expiration (usually
a Friday); (2) at the time of listing an Alpha Index option, options
on each underlying component of an Alpha Index will also be listed
and traded on the Exchange and will meet the requirements of Rule
1009, Criteria for Underlying Securities. Additionally, each
underlying component's trading volume (in all markets in which the
underlying security is traded) must have averaged at least 2,250,000
shares per day in the preceding twelve months; (3) following the
listing of an Alpha Index option, options on each of the component
securities of the Alpha Index will continue to meet the continued
listing standards set forth by Phlx Rule 1010, Withdrawal of
Approval of Underlying Securities or Options. Additionally, each
underlying component's trading volume (in all markets in which the
underlying security is traded) must have averaged at least 2,000,000
shares per day in the preceding twelve months; and (4) no Alpha
Index option will be listed unless and until options overlying each
of the Alpha Index component securities have been listed and traded
on a national securities exchange with an average daily options
trading volume during the three previous months of at least 10,000
contracts. Following the listing of an Alpha Index option, options
on each of the component securities of the Alpha Index must continue
to meet this options average daily volume standard.
---------------------------------------------------------------------------

Position Limits

    The Exchange also proposes to amend section (f) of Exchange Rule
1001A to establish a 15,000 contract position limit in options on Alpha
Indexes in which the Target Component is an ETF share. This 15,000
contract position limit would apply not only to the specific Alpha
Index options proposed herein, but also to any options the Exchange may
list in the future on Alpha Indexes in which the Target Component is an
ETF share.\6\ For purposes of determining compliance with position
limits, positions in Alpha Index options will be aggregated with
positions in equity options on the underlying securities. All position
limit hedge exemptions will apply.
---------------------------------------------------------------------------

    \6\ The Exchange will not, however, list options on any such
Alpha Pairs without filing a proposed rule change seeking Commission
approval.
---------------------------------------------------------------------------

Clearing

    Like the Alpha Index options that are currently trading, the
proposed new Alpha Index options are ``Strategy Based Options'' that
will be cleared by the Options Clearing Corporation.

Surveillance

    Surveillance for opening price manipulation will be in place for
the launch of these new Alpha Index options and other existing
surveillance patterns will be utilized to monitor trading in these
options. The Exchange represents that these surveillance procedures are
adequate to monitor the trading of the new Alpha Index options. For
surveillance purposes, the Exchange will have complete access to
information regarding trading activity in the pertinent underlying
securities and options thereon.

Margin

    The Exchange will set customer margin levels for the new Alpha
Index options at the higher of the margin required for options on the
Target Component or the margin required for options on the Benchmark
Component.

Systems Capacity

    Additionally, the Exchange affirms that it possesses the necessary
systems capacity to support new series that would result from the
introduction of these new Alpha Index options. The

Exchange also has been informed that the Options Price Reporting
Authority (``OPRA'') has the capacity to support such new series.

Customer Protection

    Exchange rules designed to protect public customers trading in
options would apply to the new Alpha Index options. Phlx Rule 1026 is
designed to ensure that options, including Alpha Index options, are
sold only to customers capable of evaluating and bearing the risks
associated with trading in the instruments. Phlx Rule 1024, applicable
to the conduct of accounts, Phlx Rule 1025 relating to the supervision
of accounts, Phlx Rule 1028 relating to confirmations, and Phlx Rule
1029 relating to the delivery of options disclosure documents also
apply to trading in Alpha Index options.

Exchange Rules Applicable

    All other Exchange rules applicable to Alpha Index options will
also apply to the Alpha Index options proposed herein.

III. Discussion

    The Commission finds that the proposed rule change is consistent
with the requirements of the Act and the rules and regulations
thereunder applicable to a national securities exchange.\7\
Specifically, the Commission finds that the proposal is consistent with
Section 6(b)(5) of the Act,\8\ 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.
---------------------------------------------------------------------------

    \7\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation.
    \8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    As a national securities exchange, Phlx is required, under Section
6(b)(1) of the Act,\9\ to enforce compliance by its members, and
persons associated with its members, with the provisions of the Act,
Commission rules and regulations thereunder, and its own rules. In
addition, brokers that trade the new Alpha Index options will also be
subject to best execution obligations and FINRA rules.\10\ Applicable
Exchange rules also require that customers receive appropriate
disclosure before trading any Alpha Index option.\11\ Furthermore,
brokers opening accounts and recommending options transactions must
comply with relevant customer suitability standards.\12\
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78f(b)(1).
    \10\ See NASD Rule 2320.
    \11\ See Exchange Rule 1029.
    \12\ See Exchange Rule 1026. See also Exchange Rules 1024 and
1025.
---------------------------------------------------------------------------

    Exchange rules applicable to Alpha Index options will also apply to
the Alpha Index options proposed herein. As stated in the previous
approval for the listing and trading of Alpha Index options, the
Commission believes that the listing rules for Alpha Index options are
consistent with the Act. Further, the Commission notes that Alpha Index
options will be listed only on the specific Alpha Indexes approved by
the Commission.\13\ The Exchange has represented that it will not list
options on any new Alpha Indexes without filing a proposed rule change
seeking Commission approval.
---------------------------------------------------------------------------

    \13\ The Commission has previously approved the listing and
trading of options on the following Alpha Indexes: AAPL/SPY, AMZN/
SPY, CSCO/SPY, F/SPY, GE/SPY, GOOG/SPY, HPQ/SPY, IBM/SPY, INTC/SPY,
KO/SPY, MRK/SPY, MSFT/SPY, ORCL/SPY, PFE/SPY, RIMM/SPY, T/SPY, TGT/
SPY, VZ/SPY and WMT/SPY. See supra note 3. The Commission is now
approving the listing and trading of options on the following Alpha
Indexes only: DIA/SPY, EEM/SPY, EWJ/SPY, EWZ/SPY, FXI/SPY, GLD/SPY,
IWM/SPY, QQQ/SPY, SLV/SPY, TLT/SPY, XLE/SPY and XLF/SPY.
---------------------------------------------------------------------------

    The Commission notes that the Exchange has represented that it will
have adequate surveillance procedures in place for trading in the new
Alpha Index options. Opening price manipulation surveillance will be in
place for the launch of the new options on Alpha Indexes and other
existing surveillance patterns will be utilized to monitor trading in
options on each new Alpha Index. In addition, for surveillance
purposes, the Exchange will have complete access to information
regarding trading activity in the pertinent underlying securities and
options thereon. Further, the Commission believes that the Exchange's
proposed position and exercise limits for the new Alpha Index options
are appropriate and consistent with the Act.
    Lastly, the Commission notes that the Exchange has affirmed that it
possesses the necessary systems capacity to support any new series that
would result from the introduction of the new Alpha Index options.

IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\14\ that the proposed rule change (SR-Phlx-2011-89) be, and hereby
is, approved.
---------------------------------------------------------------------------

    \14\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
---------------------------------------------------------------------------

    \15\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-21486 Filed 8-22-11; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 82, Number 90 (Thursday, May 11, 2017)]
[Rules and Regulations]
[Pages 21916-21917]
[FR Doc No: 2017-09598]

=======================================================================
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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 117

[Docket No. USCG-2017-0161]

Drawbridge Operation Regulation; Canaveral Barge Canal,
Canaveral, FL

AGENCY: Coast Guard, DHS.

ACTION: Notice of deviation from drawbridge regulation with request for
comments; modification.

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

SUMMARY: The Coast Guard has modified a temporary deviation from the
operating schedule that governs the SR 401 Drawbridge, mile 5.5 at Port
Canaveral, Florida. This modified deviation is necessary to reduce
vehicular traffic congestion and to ensure the safety of the roadways
while passengers are transiting to and from Cruise Terminal 10, which
is used by Norwegian Cruise Line at Port Canaveral. Since the arrival
of the cruise ship Norwegian Epic to the Port of Canaveral, massive
traffic back-ups have been caused by the drawbridge openings. This
modified deviation allows the bridge to not open to navigation during
prime cruise ship passenger loading and unloading times on Saturdays
and Sundays.

DATES: This modified deviation is effective without actual notice from
May 11, 2017 until October 23, 2017. Submit comments by June 26, 2017.

ADDRESSES: The docket for this deviation, [USCG-2017-0161] is available
at http://www.regulations.gov. Type the docket number in the ``SEARCH''
box and click ``SEARCH''. Click on Open Docket Folder on the line
associated with this deviation.

FOR FURTHER INFORMATION CONTACT: If you have questions on this
temporary deviation, call or email Mr. Michael Lieberum with the
Seventh Coast Guard District Bridge Office; telephone<PHONE_NUMBER>,
email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: On April 25, 2017 the Coast Guard published
a temporary deviation entitled ``Drawbridge Operation Regulation;
Canaveral Barge Canal, Canaveral, FL in the Federal Register (82 FR
18989). Under that temporary deviation, the bridge would remain in the
closed-to-navigation position from 11 a.m. to 2 p.m. on Saturdays. The
Canaveral Port Authority has requested that this deviation also include
Sundays. The current operating regulation is under 33 CFR 117.273. The
bridge logs from November 2016 indicate that, at most, approximately
nine vessels may be affected by establishing this three hour bridge
closure on Saturdays and Sundays. The majority of the opening requests
were either at the beginning or end of this closure period; therefore,
by adjusting their transits slightly there should be a negligible
overall effect. This modified deviation is effective from May 11, 2017
until October 23, 2017. The Coast Guard will continue to evaluate the
impact to mariners navigating this area during the closure periods and
has requested comments be submitted during the first 60 days of this
modified deviation.
    Vessels able to pass through the bridge in the closed position may
do so at any time. The bridge will be able to open for emergencies and
there is no immediate alternate route for vessels to pass through the
bridge in closed positions. The Coast Guard will also inform the users
of the waterways through Local and Broadcast Notices to Mariners of the
change in operating schedule for the bridge so that vessel operators
can arrange their transits to minimize any impact caused by the
temporary deviation.
    In accordance with 33 CFR 117.35(e), the drawbridge must return to
its regular operating schedule immediately at the end of the effective
period of this temporary deviation. This deviation from the operating
regulations is authorized under 33 CFR 117.35.

Public Participation and Request for Comments

    We view public participation as essential to effective rulemaking,
and will consider all comments and material received during the comment
period. Your comment can help shape the outcome of this rulemaking. If
you submit a comment, please include the docket number for this
rulemaking, indicate the specific section of this document to which
each comment applies, and provide a reason for each suggestion or
recommendation.
    We encourage you to submit comments through the Federal eRulemaking
Portal at http://www.regulations.gov. If your material cannot be
submitted using http://www.regulations.gov, contact the person in the
FOR FURTHER INFORMATION CONTACT section of this document for alternate
instructions.
    We accept anonymous comments. All comments received will be posted
without change to http://www.regulations.gov and will include any
personal information you have provided. For more about privacy and the
docket, you may review a Privacy Act notice regarding the Federal
Docket Management System in the March 24, 2005, issue of the Federal
Register (70 FR 15086).
    Documents mentioned in this notice of deviation, and all public
comments, are in our online docket at http://www.regulations.gov and
can be viewed by following that Web site's instructions. Additionally,
if you go to the online docket and sign up for email alerts, you will
be notified when comments are posted or a final rule is published.

    Dated: May 8, 2017.
Barry Dragon,
Director, Bridge Branch, Seventh Coast Guard District.
[FR Doc. 2017-09598 Filed 5-10-17; 8:45 am]
 BILLING CODE 9110-04-P


			  UNITED STATES OF AMERICA

		        DEPARTMENT OF TRANSPORTATION

			  OFFICE OF THE SECRETARY

			          WASHINGTON, D.C.

			Issued by the Department of Transportation on February 18, 2005

NOTICE OF ACTION TAKEN -- DOCKET OST-2001-11127

________________________________________________________________________
________________________________________________________

This serves as notice to the public of the action described below, taken
by the Department official indicated (no additional confirming order
will be issued in this matter).

Applicant: Thai Airways International Public Company Limited		Date
Filed: February 14, 2005

Relief requested:  Exemption from 49 U.S.C. § 41301 to conduct
scheduled foreign air transportation of persons, property and mail
between Bangkok and the coterminal points New York and Washington, D.C.,
via Tokyo on a blind sector basis, on a code-share basis only.  Thai
would conduct these operations pursuant to a code-share arrangement with
All Nippon Airways Co. Ltd. (ANA).

Date and citation of last action:  Thai Airways previously held the
authority described above; that authority expired by its terms on
January 29, 2005 (see Notice of Action Taken, dated January 29, 2004, in
this docket).

Applicant representative: Cathleen P. Peterson<PHONE_NUMBER>		DOT
analyst:  Shelita Smith<PHONE_NUMBER>

Responsive pleadings:  None filed

	DISPOSITION

Action:  Approved exemption authority							Action date:  February 18,
2005

Granted, sua sponte (1) ANA a statement of authorization under 14 CFR
Part 212 to display Thai’s designator code on flights operated by ANA
between Tokyo and New York/Washington, D.C.; and (2) Thai Airways and
ANA statements of authorization under 14 CFR Part 212 of our rules to
permit each carrier to display the other’s designator code on
Tokyo-Bangkok flights for the purpose of carrying U.S.
originating/destined code-share connecting passengers.

(We acted on Thai Airways’ request without awaiting expiration of the
prescribed answer period with the consent of all parties served)

Effective dates of exemption authority granted:  February 18,
2005–February 18, 2006

The statements of authorization granted to ANA and Thai were effective
when taken February 17, 2005, and will remain in effect indefinitely,
subject to the conditions set forth below.

 Basis for approval (bilateral agreement/reciprocity):  The authority is
provided for in both the U.S.-Japan and the U.S.-Thailand Air Transport
Agreements

Except to the extent exempted/waived, the exemption authority granted is
subject to the terms, conditions, and limitations indicated:  X
Standard exemption conditions (attached)       X  Foreign air carrier
permit conditions (Order 80-9-74)

X  Statement of authorization granted for All Nippon Airways and Thai
Airways granted by this notice and conditions therein.

The code-share operations authorized above are subject to the following
conditions:

The statements of authorization will remain in effect only as long as
(i) ANA and Thai continue to hold the necessary underlying authority to
operate the code-share services at issue, and (ii) the code-share
agreement providing for the code-share operations remains in effect.

2

ANA and/or Thai must promptly notify the Department if the code-share
agreement providing for the code-share operations is no longer effective
or the carriers decide to cease operating any or all of the approved
code-share services.  Such notices should be filed in Docket
OST-2001-11127.

The code-sharing operations conducted under this authority must comply
with 14 CFR 257 and with any amendments to the Department’s
regulations concerning code-share arrangements that may be adopted.
Notwithstanding any provisions in the contract between the carriers, our
approval here is expressly conditioned upon the requirements that the
subject foreign air transportation be sold in the name of the carrier
holding out such service in computer reservation systems and elsewhere;
that the carrier selling such transportation (i.e., the carrier shown on
the ticket) accept responsibility for the entirety of the code-share
journey for all obligations established in its contract of carriage with
the passenger; and that the passenger liability of the operating be
unaffected.

The authority granted here is specifically conditioned so that neither
carrier shall give any force or effect to any contractual provisions
between themselves that are contrary to these conditions.

We may amend, modify or revoke the authority granted at any time without
hearing at our discretion.

Action taken by:   Paul L. Gretch, Director

		      Office of International Aviation

________________________________________________________________________
_________________________

We found that the applicant was qualified to perform its proposed
operations.  Under authority assigned by the Department in its
regulations, 14 CFR Part 385, we found that  (1) our action was
consistent with Department policy; (2) grant of the authority was
consistent with the public interest; and (3) grant of the authority
would not constitute a major regulatory action under the Energy Policy
and Conservation Act of 1975.  To the extent not
granted/deferred/dismissed, we denied all requests in the referenced
Docket.  We may amend, modify, or revoke the authority granted in this
Notice at any time without hearing at our discretion.

Persons entitled to petition the Department for review of the action set
forth in this Notice under the Department’s regulations, 14 CFR
§385.30, may file their petitions within seven (7) days after the date
of issuance of this Notice.  This action was effective when taken, and
the filing of a petition for review will not alter such effectiveness.

An electronic version of this document is available on the World Wide
Web at:

  HYPERLINK "http://dms.dot.gov//reports/reports_aviation.asp"
http://dms.dot.gov//reports/reports_aviation.asp

Foreign Carrier Exemption Conditions

In the conduct of the operations authorized, the foreign carrier
applicant(s) shall:

(1)  Not conduct any operations unless it holds a currently effective
authorization from its homeland for such operations, and it has filed a
copy of such authorization with the Department;

(2)  Comply with all applicable requirements of the Federal Aviation
Administration, including, but not limited to, 14 CFR Parts 129, 91, and
36, and with all applicable U.S. Government requirements concerning
security, including, but not limited to, 49 CFR Part 1546 or 1550, as
applicable.  To assure compliance with all applicable U.S. Government
requirements concerning security, the holder shall, before commencing
any new service (including charter flights) from a foreign airport that
would be the holder’s last point of departure for the United States,
contact its International Principal Security Inspector (IPSI) to advise
the IPSI of its plans and to find out whether the Transportation
Security Administration has determined that security is adequate to
allow such airport(s) to be served;

(3)  Comply with the requirements for minimum insurance coverage
contained in 14 CFR Part 205, and, prior to the commencement of any
operations under this authority, file evidence of such coverage, in the
form of a completed OST Form 6411, with the Federal Aviation
Administration’s Program Management Branch (AFS-260), Flight Standards
Service (any changes to, or termination of, insurance also shall be
filed with that office);

(4)  Not operate aircraft under this authority unless it complies with
operational safety requirements at least equivalent to Annex 6 of the
Chicago Convention;

(5)  Conform to the airworthiness and airman competency requirements of
its Government for international air services;

(6)  Except as specifically exempted or otherwise provided for in a
Department Order, comply with the requirements of 14 CFR Part 203,
concerning waiver of Warsaw Convention liability limits and defenses;

(7)  Agree that operations under this authority constitute a waiver of
sovereign immunity, for the purposes of 28 U.S.C. 1605(a), but only with
respect to those actions or proceedings instituted against it in any
court or other tribunal in the United States that are: (a) based on its
operations in international air transportation that, according to the
contract of carriage, include a point in the United States as a point of
origin, point of destination, or agreed stopping place, or for which the
contract of carriage was purchased in the United States; or (b)  based
on a claim under any international agreement or treaty cognizable in any
court or other tribunal of the United States.  In this condition, the
term "international air transportation" means "international
transportation" as defined by the Warsaw Convention, except that all
States shall be considered to be High Contracting Parties for the
purpose of this definition;

(8)  Except as specifically authorized by the Department, originate or
terminate all flights to/from the United States in its homeland;

(9)  Comply with the requirements of 14 CFR Part 217, concerning the
reporting of scheduled, nonscheduled, and charter data;

(10) If charter operations are authorized, except as otherwise provided
in the applicable aviation agreement, comply with the Department's rules
governing charters (including 14 CFR Parts 212 and 380); and

(11) Comply with such other reasonable terms, conditions, and
limitations required by the public interest as may be prescribed by the
Department, with all applicable orders or regulations of other U.S.
agencies and courts, and with all applicable laws of the United States.

This authority shall not be effective during any period when the holder
is not in compliance with the conditions imposed above.  Moreover, this
authority cannot be sold or otherwise transferred without explicit
Department approval under Title 49 of the U.S. Code.

 With the expiration of Thai’s exemption authority, the statements of
authorization granted ANA and Thai Airways on December 20, 2001, also
expired by their terms on January 29, 2005.  See Notice of Action Taken
issued on December 20, 2001, in this docket, and the code-share
conditions attached there to.

 We expect this notification to be received within 10 days of such
non-effectiveness or of such decision.

05/2004


[Federal Register: July 27, 2007 (Volume 72, Number 144)]
[Notices]
[Page 41367-41369]
[DOCID:fr27jy07-91]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56114; File No. SR-CBOE-2007-81]

Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change To Amend CBOE's Rules Related To Credit Default Options

July 20, 2007.
    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 16, 2007, the Chicago Board Options Exchange, Incorporated
(``Exchange'' or ``CBOE'') 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
substantially by the Exchange. The Exchange has designated the proposed
rule change as one constituting a stated policy, practice, or
interpretation with respect to the meaning, administration, or
enforcement of an existing rule under section 19(b)(3)(A)(i) of the Act
\3\ and Rule 19b-4(f)(1) thereunder,\4\ which renders the proposal
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)(i).
    \4\ 17 CFR 240.19b-4(f)(1).
---------------------------------------------------------------------------

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

    The Exchange proposes to amend its rules pertaining to Credit
Default Options (``CDOs'') in order to set out certain parameters that
the Exchange intends to use for determining the applicable share to be
allocated to a Successor Reference Entity if there is a CDO contract
adjustment due to a Succession Event.\5\ The text of the proposed rule
change is available on the Exchange's Web site (http://www.cboe.org/legal
), at the Exchange's principal office, and at the Commission's

Public Reference Room.
---------------------------------------------------------------------------

    \5\ The terms ``applicable share,'' ``Successor Reference
Entity,'' and ``Succession Event'' are described further below.
---------------------------------------------------------------------------

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 those statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.

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

1. Purpose
    The Exchange recently received approval to list and trade Credit
Default Options or CDOs, which are binary call options based on Credit
Events \6\ in one or more debt securities of an issuer or guarantor.\7\
The Exchange is now proposing to amend Rule 29.4, Adjustments, in order
to set out certain parameters that the Exchange intends to use for
determining the applicable share to be allocated to a Successor
Reference Entity if there is a CDO contract adjustment due to a
Succession Event.\8\
---------------------------------------------------------------------------

    \6\ A ``Reference Obligation'' is a specific debt security of an
issuer or guarantor that underlies a CDO. The set of the Reference
Obligation and any other debt security obligation(s) of the issuer
or guarantor (other than non-recourse indebtedness) that underlie a
CDO are referred to as the ``Relevant Obligations.'' A ``Credit
Event'' occurs when a Reference Entity has a Failure-to-Pay Default
on, any other Event of Default on, and/or a Restructuring of the
Relevant Obligation(s). Failure-to-Pay Defaults, Events of Default
and Restructuring are defined in accordance with the terms of the
Relevant Obligation(s) and subject to certain minimum threshold
amounts provided in Rule 29.1(c).
    \7\ See Securities Exchange Act Release No. 55871 (June 6,
2007), 72 FR 32372 (June 12, 2007) (SR-CBOE-2006-84).
    \8\ A ``Successor Reference Entity'' and a ``Succession Event''
are defined in accordance with the terms of the Relevant
Obligation(s). See Rule 29.4(a)(1)(i).
---------------------------------------------------------------------------

    By way of background, the cash settlement amount for a CDO is
generally $100,000 per contract (equal to an exercise settlement value
of $100 multiplied by a contract multiplier of 1,000) upon automatic
exercise if the Exchange confirms a Credit Event.\9\ If a Credit Event
is not confirmed, the cash settlement value will be $0. Among other
things, Rule 29.4 provides that CDO contracts will be subject to
adjustment and replaced by one or more CDOs derived from Successor
Reference Entities based on the applicable share of each Successor
Reference Entity. The ``applicable share'' is a percentage amount used
to determine the adjusted cash settlement amount and adjusted contract
multiplier applicable to each replacement CDO.\10\ For example, if
there are two Successor Reference Entities that each have an applicable
share of 50%, the cash settlement amount for each replacement CDO would
be $50,000 (equal to an exercise settlement value of $100 multiplied by
the revised contract multiplier of 500).
---------------------------------------------------------------------------

    \9\ See Rule 29.1(a).
    \10\ Every determination by the Exchange pursuant to Rule 29.4
is within the Exchange's sole discretion, is conclusive and binding
on all holders and sellers, and is not subject to review. See Rule
29.4(d).
---------------------------------------------------------------------------

    Currently, the rule is silent regarding the calculation of the
applicable share. Based on feedback from potential CDO investors and in
order to provide more clarity and certainty to such investors, the
Exchange is proposing to codify certain parameters that it intends to
utilize in determining the applicable share. As set out in the proposed
revisions to the rule text, in determining the applicable share the
Exchange, as a general rule, would allocate an equal share to each
Successor Reference Entity that has succeeded the Reference Entity as
issuer and guarantor of (i) at least one Relevant Obligation and (ii)
at least 25% of the principal amount of the original Reference Entity's
outstanding debt obligations other than non-recourse indebtedness. If
no Successor Reference Entity satisfies the ``at least 25%''
requirement and the original Reference Entity does not survive
following the Succession Event, an equal share will be allocated to the
Successor Reference Entity(ies) that succeeded to the largest
percentage of the original Reference Entity's outstanding debt
obligations other than non-recourse indebtedness.\11\ These applicable
share parameters would override any contradictory provision in the
Relevant Obligation(s) terms. In addition, the Exchange intends to
apply these parameters to all presently listed and any future-listed
CDO contracts.
---------------------------------------------------------------------------

    \11\ If no Successor Reference Entity satisfies the ``at least
25%'' requirement and the original Reference Entity survives, then
no Succession Event will be deemed to have occurred and the CDO
contract will not be adjusted.
---------------------------------------------------------------------------

    The following examples illustrate the application of the
parameters:
     Assume a Succession Event is confirmed by the Exchange in
a Reference Entity with $100 million outstanding in debt obligations
and, under the terms of the Succession Event, Successor Reference
Entity A succeeds to certain Relevant Obligations and other debt
obligations totaling $40 million (40% of the original Reference
Entity's outstanding debt obligations), Successor Reference Entity B
succeeds to certain Relevant Obligations and other debt obligations
totaling $30

million (30%), and Successor Reference Entity C succeeds to all other
Relevant Obligations and other debt obligations totaling $30 million
(30%). A CDO contract overlying Relevant Obligations on the original
Reference Entity would be adjusted and replaced with three new CDOs,
one each for Successor Reference Entities A, B and C, and each having
an equal share value equivalent to 33.333%, the ``applicable share,''
of the original CDO contract (e.g., 33.333% of $100,000, or $33,333,
which is equal to an exercise settlement value of $100 multiplied by
the revised contract multiplier of 333.33).
     Assume a Succession Event is confirmed by the Exchange in
a Reference Entity with $100 million outstanding in debt obligations
and, under the terms of the Succession Event, Successor Reference
Entity A succeeds to certain Relevant Obligations and other debt
obligations totaling $45 million (45% of the original Reference
Entity's outstanding debt obligations), Successor Reference Entity B
succeeds to certain Relevant Obligations and other debt obligations
totaling $40 million (40%), and Successor Reference Entity C succeeds
to all other Relevant Obligations and other debt obligations totaling
$15 million (15%). A CDO contract overlying Relevant Obligations on the
original Reference Entity would be adjusted and replaced with two new
CDOs, one each for Successor Reference Entities A and B, and each
having an equal share value equivalent to 50% of the original CDO
contract (e.g., 50% of $100,000, or $50,000, which is equal to an
exercise settlement value of $100 multiplied by the revised contract
multiplier of 500). Successor Reference Entity C's applicable share
would be 0.
     Assume a Succession Event is confirmed by the Exchange in
a Reference Entity with $100 million outstanding in debt obligations
and, under the terms of the Succession Event, Successor Reference
Entities A and B each succeed to certain Relevant Obligations and other
debt obligations totaling $23 million each (23% of the original
Reference Entity's outstanding debt obligations) and Successor
Reference Entities C, D and E each succeed to certain Relevant
Obligations and other debt obligations totaling $18 million each (18%).
A CDO contract overlying Relevant Obligations on the original Reference
Entity would be adjusted and replaced with two new CDOs, one each for
Successor Reference Entities A and B, and each having an equal share
value equivalent to 50% of the original CDO contract (e.g., 50% of
$100,000, or $50,000, which is equal to an exercise settlement value of
$100 multiplied by the revised contract multiplier of 500). Successor
Reference Entities C, D and E's applicable shares would be 0.
    As indicated above, the Exchange is proposing to codify these
parameters for determining the applicable share of each Successor
Reference Entity based on feedback we have received thus far from
potential CDO investors. The Exchange believes that setting forth these
parameters would clarify how the Exchange intends to administer the
Succession Event confirmation process, thereby affording investors
additional clarity and certainty regarding the impact of a Succession
Event on an outstanding CDO contract. The Exchange also understands
that these parameters would be substantially similar to and generally
consistent with the practice in the over-the-counter market.
    Finally, the Exchange is also proposing a non-substantive change to
Rule 29.4. Specifically, the Exchange is substituting the phrase ``the
adjusted cash settlement amount(s) and the adjusted contract
multiplier(s)'' for ``adjusted unit of trading and the adjusted
exercise price'' in paragraph (c) to be consistent with the use and
meaning of those terms elsewhere in the rule text.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with
the Act and the rules and regulations under the Act applicable to
national securities exchanges. Specifically, the Exchange believes the
proposed rule change is consistent with the section 6(b)(5) \12\ which
requires that the rules of an exchange be designed to promote just and
equitable principles of trade, to prevent fraudulent and manipulative
acts, to remove impediments to and to perfect the mechanism for a free
and open market and a national market system, and, in general, to
protect investors and the public interest. As indicated above, the
Exchange believes that setting forth the ``applicable share''
parameters would clarify how the Exchange intends to administer the
Succession Event confirmation process, thereby affording investors
additional clarity and certainty regarding the impact of a Succession
Event on an outstanding CDO contract.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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

    CBOE 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.

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

    The Exchange neither solicited nor received comments on the
proposal.

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

    Because the foregoing rule change constitutes a stated policy,
practice, or interpretation with respect to the meaning,
administration, or enforcement of an existing rule, it has become
effective pursuant to section 19(b)(3)(A)(i) of the Act \13\ and Rule
19b-4(f)(1) thereunder.\14\ At any time within 60 days of the filing of
the proposed rule change, the Commission may summarily abrogate such
rule change if it appears to the Commission that such action is
necessary or appropriate in the public interest, for the protection of
investors, or otherwise in furtherance of the purposes of the Act.
---------------------------------------------------------------------------

    \13\ 15 U.S.C. 78s(b)(3)(A)(i).
    \14\ 17 CFR 240.19b-4(f)(1).
---------------------------------------------------------------------------

IV. Solicitation of Comments

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

Electronic Comments

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

File Number SR-CBOE-2007-81 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-CBOE-2007-81. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml
). Copies of the submission, all subsequent amendments, all

written statements

with respect to the proposed rule change that are filed with the
Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for inspection and copying in the
Commission's Public Reference Room, 100 F Street, NE., Washington, DC
20549, on official business days between the hours of 10 a.m. and 3
p.m. Copies of such filing also will be available for inspection and
copying at the principal office of CBOE. 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-CBOE-2007-81 and should be submitted on
or before August 17, 2007.

    For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\15\
Florence E. Harmon,
Deputy Secretary.
---------------------------------------------------------------------------

    \15\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

[FR Doc. E7-14507 Filed 7-26-07; 8:45 am]

BILLING CODE 8010-01-P