[Federal Register: December 28, 2009 (Volume 74, Number 247)]
[Notices]
[Page 68648-68651]
[DOCID:fr28de09-101]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-61189; File No. SR-FINRA-2009-089]

Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing of Proposed FINRA Rule 6490
(Processing of Company-Related Actions), To Clarify the Scope of
FINRA's Authority When Processing Documents Related to Announcements
for Company-Related Actions for Non-Exchange Listed Securities and To
Implement Fees for Such Services

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

    FINRA is proposing to adopt proposed FINRA Rule 6490 (Processing of
Company-Related Actions), to clarify the scope of FINRA's regulatory
authority and discretionary power when processing documents related to
announcements for company-related actions for non-exchange listed
equity and debt securities and to implement fees for such services.
    The text of the proposed rule change is available on FINRA's Web
site at http://www.finra.org, at the principal office of FINRA, on the
Commission's Web site at http://www.sec.gov, 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, FINRA 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. FINRA 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
    FINRA is proposing to: (1) Adopt FINRA Rule 6490 (Processing of
Company-Related Actions) to clarify the scope of FINRA's regulatory
authority and discretionary power when processing documents related to
announcements for company-related actions for non-exchange listed
equity and debt securities; and (2) implement fees for such services.
FINRA's Current Role in the OTC Market
    FINRA performs several critical functions with respect to the over-
the-counter (OTC) market, including the operation of the OTC Bulletin
Board (OTCBB), which provides a mechanism for FINRA members to quote
certain SEC-registered OTC equity securities, and the OTC Reporting
Facility (ORF), which provides a mechanism for FINRA members to trade
report, for both regulatory and dissemination purposes, transactions in
OTC equity securities.
    In addition to these functions, FINRA performs other more limited
functions relating to the processing of non-exchange listed issuer
company actions in the OTC market. Specifically, in furtherance of
FINRA's obligations to foster cooperation and coordination of the
clearing, settling and processing of transactions in equity and debt
securities of issuers with a class of publicly traded, non-exchange
listed securities, FINRA reviews and processes documents related to
announcements for company-related actions pursuant to Rule 10b-17
(Untimely Announcements of Record Dates) of the Act (``SEA Rule 10b-
17'').
    OTC issuers provide notice to FINRA to affect a full range of
company-related actions pursuant to SEA Rule 10b-17, including
dividends or other distributions in cash or kind, stock splits or
reverse stock splits, or rights or other subscriptions offerings (``SEA
Rule 10b-17 Actions''). In addition, FINRA processes documents related
to other company actions, including the issuance or change to a trading
symbol or company name, mergers, acquisition, dissolutions or other
company control transactions, bankruptcy or liquidations (``Other
Company-Related Actions''; and together with SEA Rule 10b-17 Actions,
collectively referred to hereinafter as

``Company-Related Actions''). FINRA also maintains the symbols database
for issuers. FINRA, in turn, provides notice to the marketplace of such
events and adjusts issuers' stock prices, if necessary. These functions
are important to trading and settlement in the OTC marketplace and help
promote investor protection and market integrity.
    In performing these issuer-related functions, FINRA's role has been
primarily ministerial in nature, due in large part to its limited
jurisdictional reach. FINRA does not impose listing standards for
securities and maintains no formal relationship with, or direct
jurisdiction over, issuers. FINRA's authority to perform these
functions flows primarily from two sources: SEA Rule 10b-17 and FINRA's
Uniform Practice Code (NASD Rule 11000 Series) (``UPC''). SEA Rule 10b-
17 requires issuers with a class of publicly traded, non-exchange
listed, securities to provide notice to FINRA generally 10-days before
the record date involved in the following corporate actions: Dividends
or other distributions in cash or kind, stock splits or reverse stock
splits, or rights or other subscriptions offerings. The UPC sets forth
a basic framework of rules between broker-dealers for the settlement of
non-exchange listed securities quoted and/or traded in the OTC market.
    The SEC has expressed concern that certain parties may be
attempting to use the facilities of FINRA, including the noted
ministerial functions described above and requests to announce Company-
Related Actions, to further fraudulent activities.\3\ While it is
understood that FINRA does not operate a ``listing market'' and has no
privity with OTC issuers, FINRA's OTC operations involve a wide range
of touch points with OTC issuers and require FINRA to carry out a
variety of labor-intensive tasks (e.g., OTC issuers interact directly
with FINRA operations staff to announce a full range of Company-Related
Actions). As such, there is concern that FINRA's Company-Related Action
processing services may potentially be utilized by parties to further
microcap fraud on the part of the OTC issuers and penny stock
promoters.
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    \3\ See, for example, SEC Order of Suspension of Trading In the
Matter of Andros Isle, Corporation, et al. [sic], dated March 13,
2008 (File No. 500-1), wherein the SEC suspended trading pursuant to
SEA Section 12(k), in the securities of approximately 26 Pink Sheet
securities stating ``[c]ertain persons appear to have usurped the
identity of a defunct or inactive publicly traded corporation,
initially by incorporating a new entity using the same name, and
then by obtaining a new CUSIP number and ticker symbol based on the
apparently false representation that they were duly authorized
officers, directors and/or agents of the original publicly traded
corporation.'' See also, SEC v. Irwin Boock, Stanton B.J. DeFreitas,
Nicolette D. Loisel, Roger L. Shoss, and Jason C. Wong, Birte Boock,
and 1621566 Ontario, Inc., Civil Action No. 09 CV 8261 (S.D.N.Y.)
(DLC), Litigation Release No. 21243/October 8, 2009 (SEC Charges
Five With Dozens of Fraudulent Corporate Hijackings and Unregistered
Offerings of Securities and Names Two Relief Defendants).
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Proposal
    FINRA is proposing to adopt new FINRA Rule 6490 (Processing of
Company-Related Actions) that would clarify the scope of FINRA's
regulatory authority and discretionary power when reviewing and
processing documents related to requests for Company-Related Actions.
In addition, FINRA is also proposing to implement fees for such
services to more equitably allocate costs related to the processing of
Company-Related Actions. The proposed rule would codify the authority
of FINRA's Department of Operations (Department) to conduct in-depth
reviews of Company-Related Actions and allow the staff discretion not
to process such actions that are incomplete or when certain indicators
of potential fraud exist.
    Specifically, the proposed rule would establish procedures for the
submission, review, and determination of Company-Related Actions. The
proposed rule would permit the Department to prescribe the forms,
supporting documentation and procedures necessary to conduct more in-
depth reviews of OTC issuer Company-Related Actions. Specifically, the
proposed rule would provide that an issuer or other duly authorized
representative of the issuer (``Requesting Party'') must submit a
request for FINRA to review and process documentation related to an SEA
Rule 10b-17 Action or Other Company-Related Action within the time
frames specified by either SEA Rule 10b-17 \4\ or, for Other Company-
Related Actions no later than ten (10) calendar days prior to the
effective date of the company action. All such requests must be
accompanied by proof of payment of a non-refundable fee specified in
the proposed fee table. In addition, the proposed rule would provide
that initial symbol set up requests may also be submitted by members or
associated persons of members in order to comply with regulatory
reporting requirements.
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    \4\ SEA Rule 10b-17 provides that notice must be given to FINRA
no later than 10 days prior to the record date involved or, in case
of a rights subscription or other offering, if such 10 days advance
notice is not practical, on or before the record date and in no
event later than the effective date of the registration statement to
which the offering relates. For example, an issuer of non-exchange
listed publicly traded securities that is planning a stock split on
shares of its common stock to holders of record on February 25 would
be required under SEA Rule 10b-17 to provide written notice to FINRA
no later than 10 days prior to the record date for such transaction,
or by February 15.
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    However, in recognition of the lack of privity FINRA has with OTC
issuers, FINRA is proposing to adopt Supplementary Material .02
(Requests by Third-Parties), which would permit FINRA, in its
discretion, to announce a Company-Related Action when it is contacted
by a third party, such as The Depository Trust & Clearing Corporation
(DTCC), foreign exchanges or regulators, members or associated persons.
FINRA would request that the third-party contact the issuer in question
regarding its obligations under SEA Rule 10b-17 or other rules and
regulations, as applicable, and instruct the issuer to contact FINRA
directly to provide notice and complete the requisite forms. However,
FINRA may in its discretion review and process a Company-Related Action
based on information from a third-party when it believes such action is
necessary for the protection of the market and investors and/or FINRA
has been unable to obtain notification of the Company-Related Action
from the issuer.
    The proposed rule would permit the Department to request additional
information or documentation as may be necessary for the Department to
verify the accuracy of the information submitted by the Requesting
Party. If the Requesting Party does not sufficiently respond within 90
calendar days of the date the Department requests additional
information or documentation, the request will be deemed ``lapsed'' and
will be closed.
    The proposed rule would also provide that where a Company-Related
Action is deemed deficient, the Department may determine that it is
necessary for the protection of investors, the public interest and to
maintain fair and orderly markets, that documentation related to a
Company-Related Action will not be processed.
    Factors that may be considered by the Department in finding a
request to process documentation deficient are explicitly limited to
the following: (1) FINRA staff reasonably believes the forms and all
supporting documentation, in whole or in part, may not be complete,
accurate or with proper authority; (2) the issuer is not current in its
reporting obligations, if applicable, to the SEC or other regulatory
authority; (3) FINRA has actual knowledge that parties related to the
Company-Related Action are the subject of pending, adjudicated or
settled regulatory action or investigation by a regulatory body, or
civil or criminal action related to fraud

or securities laws violations \5\; (4) a government authority or
regulator has provided information to FINRA, or FINRA has actual
knowledge, indicating that persons related to the Company-Related
Action may be potentially involved in fraudulent activities related to
the securities market and/or pose a threat to public investors; and/or
(5) there is significant uncertainty in the settlement and clearance
process for the security.
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    \5\ This would include instances where FINRA has actual
knowledge that the SEC has issued an order pursuant to Section 12(k)
of the Exchange Act temporarily suspending the issuer's securities
or pursuant to Section 12(j) of the Exchange Act revoking
registration of the issuer's securities.
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    Following a determination by the Department that a request to
process a Company-Related Action is deficient, the Department must
provide written notice to the Requesting Party. Such written notice
shall state the specific factor(s) that caused the request to be deemed
deficient. A Requesting Party may appeal such determination to a three-
member subcommittee comprised of current or former industry members of
FINRA's Uniform Practice Code Committee in writing within seven (7)
calendar days after service of the notice. The written request for an
appeal must be accompanied by proof of payment of the non-refundable
Action Determination Appeal Fee and must set forth with specificity any
and all defenses to the Department's determination that a request was
deficient. An appeal to the subcommittee will operate to stay the
processing of the Company-Related Action (i.e., the requested Company-
Related Action shall not be processed during the period that the
Requesting Party requests an appeal or while any such appeal is
pending). The subcommittee will convene once each calendar month to
consider all appeals received during the prior month and will render a
determination within three (3) business days following the day the
appeal is considered by the subcommittee. The subcommittee's
determination will constitute final action by FINRA. If the Requesting
Party fails to file a written request for an appeal within seven (7)
calendar days after service of notice, the Department's determination
shall constitute final action by FINRA.
    In addition, FINRA is proposing to establish fees for Requesting
Parties submitting documentation to announce a Company-Related Action.
The proposed fees would include late fees for Requesting Parties that
fail to provide timely notice of Company-Related Actions. FINRA
believes that late fees will encourage OTC issuers to meet the various
deadlines, including those associated with SEA Rule 10b-17, which is
critical to enable FINRA to process such requests in a timely fashion
in order to provide adequate notice to market participants. In
addition, the proposed fees will also prove beneficial in that they
will offset some of the significant costs that FINRA is currently
bearing for the benefit of OTC issuers that are not otherwise paying to
support the OTC symbol database and OTC issuer Company-Related Action
processing.
    Specifically, FINRA is proposing to charge the following non-
refundable fees for the review and processing of documentation related
to SEA Rule 10b-17 Actions and Other Company-Related Actions:

------------------------------------------------------------------------
                                                                 Fee
------------------------------------------------------------------------
SEA Rule 10b-17 Action:
    Timely SEA Rule 10b-17 Notification....................         $200
    Late SEA Rule 10b-17 Notification Submitted at least 5         1,000
     calendar days prior to Corporate Action Date..........
    Late SEA Rule 10b-17 Notification Submitted at least 1         2,000
     calendar day prior to Corporate Action Date...........
    Late SEA Rule 10b-17 Notification Submitted on or after        5,000
     Corporate Action Date.................................
Other Company-Related Action:
    Voluntary Symbol Request Change........................          500
    Initial Symbol Set Up..................................        (\1\)
    Symbol Deletion........................................        (\1\)
Appeals:
    Action Determination Appeal Fee........................        4,000
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\1\ No charge.

    However, in recognition of the critical nature of SEA Rule 10b-17
information to the marketplace, FINRA is proposing to adopt
Supplementary Material .01 (SEA Rule 10b-17 Fee Accumulations), which
would permit FINRA to process documentation for Company-Related
Actions, absent a determination that the action is deficient, even if
the fee is not paid. All unpaid SEA Rule 10b-17 Action fees associated
with a specific OTC issuer would be accumulated and FINRA would not
process Voluntary Symbol Request Changes until all unpaid accumulated
fees are paid. FINRA believes that this accumulation authority would
create incentives for issuers that are not otherwise subject to FINRA's
direct jurisdiction, to comply with the requirements of this rule
without compromising FINRA's investor protection mission. Acceptance
and processing of ``late'' Company-Related Action requests and related
fees by FINRA, will not act to relieve an issuer of potential
violations of SEA Rule 10b-17 or other Federal, State or SRO rules.
    In addition, in connection with mandatory symbol set ups or
changes, FINRA generally assigns issuers random symbols. As a result,
FINRA will not charge a voluntary symbol request change fee in
connection with a mandatory symbol change that results from an SEA Rule
10b-17 Action (i.e., a mandatory symbol change required because of a
CUSIP number change or otherwise in direct connection with an SEA Rule
10b-17 Action will not require the payment of the Voluntary Symbol
Request Change fee). However, the request (and granting, subject to
symbol availability) of a specific symbol in connection with an SEA
Rule 10b-17 Action will result in such a fee being assessed in addition
to the requisite SEA Rule 10b-17 Action fee.
    FINRA will announce the effective date of the proposed rule change
in a Regulatory Notice. The effective date will be no later than 90
days following Commission approval.
2. Statutory Basis
    FINRA believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(6) of the Act,\6\ which requires, among
other things, that FINRA rules must be designed to prevent fraudulent
and manipulative

acts and practices, to promote just and equitable principles of trade,
and, in general, to protect investors and the public interest, and
Section 15A(b)(5) of the Act,\7\ which requires, among other things,
that FINRA rules provide for the equitable allocation of reasonable
dues, fees and other charges among members and issuers and other
persons using any facility or system that FINRA operates or controls.
FINRA believes that the proposed rule will codify FINRA's authority and
discretion to review and process documents related to requests for
Company-Related Actions in the OTC securities and, along with the
proposed new fees for such services, act to ensure there is more
complete, accurate and timely information concerning Company-Related
Actions.
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    \6\ 15 U.S.C. 78o-3(b)(6).
    \7\ 15 U.S.C. 78o-3(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

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

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

    Written comments were neither solicited nor received.

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

    Within 35 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date 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 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 Exchange Act. Comments may be submitted
by any of the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to<EMAIL_ADDRESS>Please include
File Number SR-FINRA-2009-089 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-FINRA-2009-089. 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,\8\ 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 the
filing also will be available for inspection and copying at the
principal office of FINRA. 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-FINRA-2009-089 and should be submitted on or before January 19,
2010.
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    \8\ The text of the proposed rule change is available on the
Commission's Web site at http://www.sec.gov/.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-30597 Filed 12-24-09; 8:45 am]

BILLING CODE 8011-01-P


[Federal Register Volume 85, Number 217 (Monday, November 9, 2020)]
[Notices]
[Pages 71384-71387]
[FR Doc No: 2020-24783]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-90315; File No. SR-OCC-2020-013]

Self-Regulatory Organizations; The Options Clearing Corporation;
Notice of Filing of Proposed Rule Change To Update The Options Clearing
Corporation's Recovery and Orderly Wind-Down Plan

November 3, 2020.
    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 October 20, 2020, The Options Clearing Corporation (``OCC'') 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 primarily by OCC. The Commission is publishing
this notice to solicit comments on the proposed rule change from
interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change

    This proposed rule change by OCC would amend OCC's Recovery and
Orderly Wind-Down Plan (``RWD Plan'' or ``Plan''), adopted pursuant to
the requirement in Rule 17Ad-22(e)(3)(ii),\3\ to reflect: (i) Changes
to OCC's capital structure resulting from the disapproval of OCC's
previously approved ``Capital Plan'' \4\ and the subsequent approval of
OCC's ``Capital Management Policy,'' \5\ and (ii) changes made to each
chapter of the Plan during OCC's annual internal review and update of
the Plan, as required by OCC's internal governance.
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    \3\ 17 CFR 240.17Ad-22(e)(3)(ii).
    \4\ Securities Exchange Act Release No. 85121 (Feb. 13, 2019),
84 FR 5157 (Feb. 20, 2019) (SR-OCC-2015-02).
    \5\ Securities Exchange Act Release No. 86725 (Aug. 21, 2019),
84 FR 44952 (Aug. 27, 2019) (SR-OCC-2019-007).
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    The RWD Plan is included as confidential Exhibit 5 to SR-OCC-2020-
013. Material proposed to be added is marked by underlining and
material proposed to be deleted is marked by strikethrough text.\6\ The
proposed rule change does not require any changes to the text of OCC's
By-Laws or Rules. All terms with initial capitalization that are not
otherwise defined herein have the same meaning as set forth in the OCC
By-Laws and Rules.\7\
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    \6\ OCC has also filed an advance notice with the Commission in
connection with this proposal. See SR-OCC-2020-806.
    \7\ OCC's By-Laws and Rules can be found on OCC's public
website: https://www.theocc.com/Company-Information/Documents-and-Archives/By-Laws-and-Rules.
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II. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change

    In its filing with the Commission, OCC 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. OCC has prepared summaries, set forth in sections (A),
(B), and (C) below, of the most significant aspects of these
statements.

(A) Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change

(1) Purpose
Background
    On August 23, 2018, the Commission approved OCC's proposed rule
change to formalize and update OCC's RWD Plan, consistent with the
requirements of Rule 17Ad-22(e)(3)(ii).\8\ As approved, the RWD Plan
incorporated key pieces of OCC's previously approved Capital Plan,
including but not limited to the Capital Plan's provision for
``Replenishment Capital.'' \9\ In OCC's RWD Plan, Replenishment Capital
was one of the tools by which OCC could have recapitalized in certain
of its recovery and wind-down scenarios.
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    \8\ Securities Exchange Act Release No. 83918 (Aug. 23, 2018),
83 FR 44091 (Aug. 29, 2018) (SR-OCC-2017-021).
    \9\ Securities Exchange Act Release No. 74452 (Mar. 6, 2015), 80
FR 13058 (Mar. 12, 2015) (SR-OCC-2015-02). The Capital Plan was a
previously approved plan for raising additional capital under which
the securities options exchanges that own equity in OCC committed to
contributing additional capital to OCC under certain conditions and
provided for the provision of further Replenishment Capital in
certain circumstances.
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    On February 13, 2019, the Commission disapproved OCC's Capital
Plan.\10\ The disapproval of the Capital

Plan left OCC's RWD Plan with several invalid references to the Capital
Plan or to certain of its component parts, including references to
Replenishment Capital as one of OCC's identified tools for recovery and
wind-down and references to a trigger event within the Capital Plan as
one of OCC's recovery triggers. As a result of the disapproval of the
Capital Plan, OCC subsequently proposed the ``Capital Management
Policy,'' which among other things establishes a new mechanism for
funding OCC's replenishment capital and changes OCC's ``default
waterfall'' (i.e., the resources available to OCC in the event of a
Clearing Member's suspension).\11\ These changes to OCC's replenishment
capital and default waterfall necessitated changes to existing passages
concerning the same in the RWD Plan.
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    \10\ See supra note 5.
    \11\ See supra note 6.
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    In addition, OCC has made changes to its RWD Plan as a result of
its annual review and update process. As adopted, the RWD Plan itself
recognizes OCC's internal governance requirement to review and update
the Plan at least every twelve months. Accordingly, during the first
several months of 2019 and 2020, an internal, cross-disciplinary
working group within OCC conducted a review and recommended numerous
changes to the RWD Plan, which were approved by OCC's management, the
Risk Committee of OCC's Board of Directors (``Board'') and OCC's Board.
The changes resulting from the adoption of the Capital Management
Policy and the changes from OCC's annual review process are discussed
in greater detail below.
Proposed Changes
    The proposed rule change would update each of the eight chapters of
the RWD Plan.\12\ A summary description of the types of changes
proposed to each of the eight chapters of the RWD Plan is provided
below:
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    \12\ In addition to the changes summarized below, OCC would also
make administrative changes throughout the Plan to update various
OCC internal policy and procedure names.
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Chapter 1: Executive Summary
    Chapter 1 of the RWD Plan provides an executive summary and
overview of OCC's proposed Plan. The proposed changes to Chapter 1 of
the Plan would simply align the executive summary and overview to the
changes made throughout subsequent chapters of the Plan.
Chapter 2: OCC Overview
    Chapter 2 of the RWD Plan provides information that OCC believes
would be essential to relevant authorities for purposes of recovery and
orderly wind-down planning, as well as to provide readers of the Plan
with necessary context for the subsequent discussion and analysis of
OCC's ``Critical Services'' and ``Critical Support Functions'' in
Chapter 4 (discussed below) and of OCC's wind-down process in Chapter 6
(discussed below). The proposed rule change would update several
figures and factual discussions to reflect changes since the Plan's
initial approval by the Commission. The types of changes being made to
Chapter 2 would include: (i) Updated figures and numbers about market
share and contract volume; (ii) updated lists of securities options
exchanges and futures exchanges cleared by OCC; (iii) updated
organizational charts, headcount numbers, discussions of OCC's
management structure and descriptions of management roles and
responsibilities; (iv) updated descriptions of OCC's Board's
responsibilities and procedures, lists of Board members, and
descriptions of OCC's Board committees' roles and responsibilities;
\13\ (v) revised descriptions that would acknowledge certain program
changes that have occurred since the initial 2018 approval of the RWD
Plan (e.g., changes to OCC's cross-margining arrangements, changes in
credit facilities and changes concerning investment counterparties,
exchanges and vendors); (vi) updated graphs of OCC's Clearing Fund
total monthly deposits; and (vii) updated discussions of OCC's
retirement plan obligations. In addition to these updated figures and
factual discussions, the proposed rule change would (i) revise Chapter
2 to remove excerpts from OCC's most recent annual report (which would
be relocated to one of the appendices); (ii) replace a lengthy overview
of OCC's risk management program with a more concise summary; (iii)
update a summary description of OCC's interconnections with external
vendors and a list of vendors that provide OCC critical technology and
information reporting services; and (iv) revise a fee management
discussion to align with changes resulting from the implementation of
the Capital Management Policy.\14\
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    \13\ Securities Exchange Act Release No. 84473 (Oct. 23, 2018),
83 FR 54385 (Oct. 29, 2018) (SR-OCC-2018-012).
    \14\ The changes to the fee management discussion concern the
potential for OCC's Board to lower the direct costs of participation
if OCC's shareholder equity exceeds 110% of a predetermined ``Target
Capital Requirement.'' See Securities Exchange Act Release No. 86725
(Aug. 21, 2019), 84 FR 44944 (Aug. 27, 2019) (SR-OCC-2019-007).
---------------------------------------------------------------------------

Chapter 3: Support Functions
    Chapter 3 of the RWD Plan identifies each of OCC's different
internal support functions and provides a brief description of the
activities performed by each such support function. For purposes of the
RWD Plan, ``internal support functions'' are the various departments
within OCC that are necessary for OCC to provide its services to
Clearing Members and other participants. Since the initial 2018
approval of the RWD Plan, OCC has added two additional internal support
functions and expanded its Office of the Chief Executive Officer,
renamed the ``Corporate'' support function, to include OCC's executive
officers and administrative support staff. Accordingly, the proposed
rule change would add two new internal support functions (and
descriptions thereof) and replace the Office of the Chief Executive
Officer with the Corporate support function, bringing the total number
of internal support functions from 14 to 16. Since the initial 2018
approval of the RWD Plan, OCC also has modified and updated its
administrative descriptions of the roles and responsibilities of the 14
internal support functions that were discussed in the initial 2018
approval of the RWD Plan. Accordingly, the proposed rule change would
update the descriptions of all OCC's internal support functions so they
align with the modified and updated internal administrative
descriptions of such functions.
Chapter 4: Critical Services and Critical Support Functions
    Chapter 4 of the RWD Plan identifies OCC's ``Critical Services''
\15\ and ``Critical Support Functions.'' \16\ The proposed rule change
would group two previously identified Critical Services into a single
Critical Service (i.e., the changes would simply use a single term to
refer to two services that were previously listed separately). The
proposed rule change also would update dated factual references and
make other minor changes to OCC's description of its evaluations of
Critical Services and Critical Support Functions, notably to recognize
the consolidation of the two previously identified Critical Services

into a single Critical Service and recalibrate the evaluation of an OCC
service in considering whether it is a Critical Service. The proposed
rule change also would change the mapping of Critical Services to
Support Functions to recognize the ``primary,'' ``secondary,'' or
``non-critical'' nature of each Support Function, which better aligns
with OCC's internal taxonomy.
---------------------------------------------------------------------------

    \15\ A ``Critical Service,'' as defined in the proposed Plan,
would be a service provided by OCC that, if interrupted, would
likely have a material negative impact on participants or
significant third parties, give rise to contagion, or undermine the
general confidence of markets the FMU serves.
    \16\ A ``Critical Support Function,'' as defined in the proposed
Plan, would be a function within OCC that must continue in some
capacity in order for OCC to be able to continue providing its
Critical Services.
---------------------------------------------------------------------------

Chapter 5: Recovery Plan
    Chapter 5 of OCC's proposed Plan constitutes OCC's recovery plan.
The proposed rule change would make conforming edits to references to
certain former provisions within OCC's By-Laws that have since been
relocated to OCC's Rules.\17\ The proposed rule change also would
revise the inventory and description of OCC's available ``Enhanced Risk
Management Tools'' and ``Recovery Tools'' to (i) replace references to
and discussions of Replenishment Capital with references to and
descriptions of the replenishment structure under the adopted Capital
Management Policy; (ii) replace references to and discussions of the
discretionary use of OCC's current and/or retained earnings with
references to and discussions of the mandatory contribution--
immediately following the use of margin, deposits in lieu of margin and
the Clearing Fund deposits of the suspended Clearing Member--of OCC's
current and retained earnings greater than 110% of OCC's annually-
established ``Target Capital Requirement,'' as implemented by the
Capital Management Policy; (iii) update the description of how OCC
could increase the minimum required cash contribution to the Clearing
Fund to reflect enhancements to OCC's liquidity risk management
framework that the Commission approved in 2020; \18\ (iv) include a
discussion of the mandatory contribution of any unvested portions of
OCC's Executive Deferred Compensation Plan (``EDCP''), in proportion to
any charges against the mutualized portion of OCC's Clearing Fund, as
implemented by the Capital Management Policy; and (v) update the
governance of the Recovery Tools to include OCC's Chief Executive
Officer and Chief Operating Officer in various communications to OCC's
Executive Chairman. The proposed rule change also would revise the list
of ``Recovery Trigger Events'' in the recovery plan to (i) delete one
of the Recovery Trigger Events that was derived from a defined term in
the Capital Plan, (ii) consolidate two other Recovery Trigger Events
into a single, operational loss-related recovery trigger, and (iii) add
a qualification onto an existing liquidity loss-related recovery
trigger. The proposed rule change would also delete unnecessary
historical data on business volumes from the hypothetical stress
scenarios in Chapter 5 that illustrate how OCC could use its recovery
tools.
---------------------------------------------------------------------------

    \17\ See Securities Exchange Act Release No. 83735 (Jul. 27,
2018), 83 FR 37855 (Aug. 2, 2018) (SR-OCC-2010-008).
    \18\ See Securities Exchange Act Release No. 89014 (Jun. 4,
2020), 85 FR 35446 (Jun. 10, 2020) (SR-OCC-2020-003).
---------------------------------------------------------------------------

Chapter 6: Wind-Down Plan
    Chapter 6 of OCC's RWD Plan constitutes OCC's orderly wind-down
plan. The proposed rule change would revise the list of Wind-Down Plan
Trigger Events (``WDP Triggers'') to consolidate two current WDP
Triggers into a single WDP Trigger related to OCC's financial resource
requirements, and consolidate two other current WDP Triggers into a
single WDP Trigger related to operational disruption. The proposed rule
change would also update discussions of the tools by which OCC could
have recapitalized in certain of its recovery and wind-down scenarios.
As revised, these discussions would describe replenishment capital
available under the adopted Capital Management Policy, deleting
descriptions of Replenishment Capital available under the former
Capital Plan. The proposed rule change also would update certain of the
references to OCC's internal support functions and certain references
to headcount in Chapter 6.
Chapter 7: RWD Plan Governance
    Chapter 7 of OCC's RWD Plan section details the governance of OCC's
RWD Plan. The proposed rule change would revise the lists of OCC staff
involved in the completion of the plan (largely to give effect to the
fact that the titles of certain offices changed since the RWD Plan's
proposal in 2017).
Chapter 8: Appendices
    Chapter 8 of OCC's RWD Plan is comprised of several appendices. The
proposed rule change would update several lists within the appendices
to reflect changes that have occurred since the Plan's initial approval
by the Commission. The types of changes being made to Chapter 8 would
include: (i) Updated lists of OCC's clearing membership; (ii) updated
lists of participation on OCC's Board; (iii) updated lists of
settlement banks and letter of credit banks; (iv) updated lists of
vendors and service providers that would be necessary to support a
recovery or wind-down of OCC; (v) updates to the extreme hypothetical
scenarios designed by OCC that, if such scenarios occurred, could cause
OCC to activate the RWD Plan; and (vi) updated lists of the key
agreements to be maintained during recovery and wind-down efforts.
(2) Statutory Basis
    OCC believes that the proposed rule change is consistent with
Section 17A of the Act \19\ and the rules thereunder applicable to OCC.
Section 17A(b)(3)(F) of the Act \20\ requires, in part, that the rules
of a clearing agency be designed, in general, to protect investors and
the public interest. The RWD Plan is designed to enhance OCC's ability
to address extreme stresses or crises by establishing a framework that
OCC could use to navigate the use its Enhanced Risk Management Tools
and Recovery Tools, with the aim of maintaining OCC's viability as a
going concern. In the event that OCC's recovery efforts are not
successful, the RWD Plan would seek to improve the possibility that a
resolution of OCC's operations can be conducted in an orderly manner,
thereby minimizing the disruption to Clearing Members and market
participants and improving the likelihood of minimizing the risk of
contagion to the broader financial system. Accordingly, OCC believes
the conforming updates to the RWD Plan would improve the possibility of
OCC's effectively addressing a variety of potential risks, thereby
improving OCC's ability to ultimately maintain market and public
confidence during a time of unprecedented stress. In this regard, OCC
believes the proposed rule change ultimately would protect investors
and the public interest in a manner consistent with Section
17A(b)(3)(F) of the Act.\21\
---------------------------------------------------------------------------

    \19\ 15 U.S.C. 78q-1.
    \20\ 15 U.S.C. 78q-1(b)(3)(F).
    \21\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------

    OCC also believes that the proposed rule change is consistent with
Exchange Act Rule 17Ad-22(e)(3)(ii), which requires each covered
clearing agency to establish, implement, maintain and enforce written
policies and procedures reasonably designed to include plans for the
recovery and orderly wind-down of the covered clearing agency
necessitated by credit losses, liquidity shortfalls, losses from
general business risk, or any other losses.\22\ As stated above, the
RWD Plan would describe OCC's plans to recover from, or orderly resolve
its operations as a result of, severe stress brought about by credit
losses, liquidity shortfalls, losses from general business risk or
other losses.\23\ The proposed

updates to the RWD Plan would improve the accuracy of the inventory of
OCC's Recovery Tools and improve OCC's evaluation of scenarios which
may potentially prevent OCC from providing its Critical Services as a
going-concern, as well as OCC's plans for recovery or orderly wind-
down. Further, the proposed changes to the Plan would update and
improve the information that a resolution authority may reasonably
anticipate as necessary for purposes of recovery and orderly wind-down
planning.\24\ In this regard, OCC believes its proposed rule change is
consistent with Rule 17Ad-22(e)(3)(ii).\25\
---------------------------------------------------------------------------

    \22\ 17 CFR 240.17Ad-22(e)(3)(ii).
    \23\ 17 CFR 240.17Ad-22(e)(3)(ii).
    \24\ See 81 FR at 70810.
    \25\ 17 CFR 240.17Ad-22(e)(3)(ii).
---------------------------------------------------------------------------

    The proposed rule change is not inconsistent with the existing
rules of OCC, including any other rules proposed to be amended.

(B) Clearing Agency's Statement on Burden on Competition

    Section 17A(b)(3)(I) of the Act \26\ requires that the rules of a
clearing agency not impose any burden on competition not necessary or
appropriate in furtherance of the purposes of the Act. OCC does not
believe that the proposed rule change would impact or impose any burden
on competition.\27\ The proposed rule change would update OCC's RWD
Plan. The proposed updates to the RWD Plan are the result of OCC's
annual review and update process; these proposed changes would revise
certain factual representations, update certain organizational
discussion and make changes to conform to OCC's adopted Capital
Management Policy. None of the proposed updates to the RWD Plan would
affect Clearing Members' access to OCC's services or impose any direct
burdens on clearing members. Accordingly, the proposed rule change
would not unfairly inhibit access to OCC's services or disadvantage or
favor any particular user in relationship to another user.
---------------------------------------------------------------------------

    \26\ 15 U.S.C. 78q-1(b)(3)(I).
    \27\ 15 U.S.C. 78q-1(b)(3)(I).
---------------------------------------------------------------------------

    For the foregoing reasons, OCC believes that the proposed rule
change is in the public interest, would be consistent with the
requirements of the Act applicable to clearing agencies, and would not
impact or impose a burden on competition.

(C) Clearing Agency's Statement on Comments on the Proposed Rule Change
Received From Members, Participants or Others

    Written comments on the proposed rule change were not and are not
intended to be solicited with respect to the proposed rule change and
none have been 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 the 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-OCC-2020-013 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-OCC-2020-013. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of such filing also will be available for inspection
and copying at the principal office of OCC and on OCC's website at
https://www.theocc.com/Company-Information/Documents-and-Archives/By-Laws-and-Rules.
    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-OCC-2020-013 and
should be submitted on or before November 30, 2020.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\28\
---------------------------------------------------------------------------

    \28\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-24783 Filed 11-6-20; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 86, Number 209 (Tuesday, November 2, 2021)]
[Proposed Rules]
[Pages 60416-60418]
[FR Doc No: 2021-23716]

=======================================================================
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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 71

[Docket No. FAA-2021-0849; Airspace Docket No. 21-ACE-17]
RIN 2120-AA66

Proposed Amendment of VOR Federal Airways V-161, V-190, and V-
307, and Revocation of VOR Federal Airway V-516 in the Vicinity of
Oswego, KS

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: This action proposes to amend VHF Omnidirectional Range

(VOR) Federal airways V-161, V-190, and V-307, and revoke V-516. The
FAA is proposing this action due to the planned decommissioning of the
VOR portion of the Oswego, KS, VOR/Distance Measuring Equipment (VOR/
DME) navigational aid (NAVAID). The Oswego VOR is being decommissioned
in support of the FAA's VOR Minimum Operational Network (MON) program.

DATES: Comments must be received on or before December 17, 2021.

ADDRESSES: Send comments on this proposal to the U.S. Department of
Transportation, Docket Operations, 1200 New Jersey Avenue SE, West
Building Ground Floor, Room W12-140, Washington, DC 20590; telephone:
1(800) 647-5527, or<PHONE_NUMBER>. You must identify FAA Docket No.
FAA-2021-0849; Airspace Docket No. 21-ACE-17 at the beginning of your
comments. You may also submit comments through the internet at https://www.regulations.gov.
    FAA Order JO 7400.11F, Airspace Designations and Reporting Points,
and subsequent amendments can be viewed online at https://www.faa.gov/air_traffic/publications/. For further information, you can contact the
Rules and Regulations Group, Federal Aviation Administration, 800
Independence Avenue SW, Washington, DC 20591; telephone: (202) 267-
8783. FAA Order JO 7400.11F is also available for inspection at the
National Archives and Records Administration (NARA). For information on
the availability of FAA Order JO 7400.11F at NARA, email:
[email protected] or go to https://www.archives.gov/federal-register/cfr/ibr-locations.html.

FOR FURTHER INFORMATION CONTACT: Colby Abbott, Rules and Regulations
Group, Office of Policy, Federal Aviation Administration, 800
Independence Avenue SW, Washington, DC 20591; telephone: (202) 267-
8783.

SUPPLEMENTARY INFORMATION:

Authority for This Rulemaking

    The FAA's authority to issue rules regarding aviation safety is
found in Title 49 of the United States Code. Subtitle I, Section 106
describes the authority of the FAA Administrator. Subtitle VII,
Aviation Programs, describes in more detail the scope of the agency's
authority. This rulemaking is promulgated under the authority described
in Subtitle VII, Part A, Subpart I, Section 40103. Under that section,
the FAA is charged with prescribing regulations to assign the use of
the airspace necessary to ensure the safety of aircraft and the
efficient use of airspace. This regulation is within the scope of that
authority as it would modify the National Airspace System as necessary
to preserve the safe and efficient flow of air traffic.

Comments Invited

    Interested parties are invited to participate in this proposed
rulemaking by submitting such written data, views, or arguments as they
may desire. Comments that provide the factual basis supporting the
views and suggestions presented are particularly helpful in developing
reasoned regulatory decisions on the proposal. Comments are
specifically invited on the overall regulatory, aeronautical, economic,
environmental, and energy-related aspects of the proposal.
    Communications should identify both docket numbers (FAA Docket No.
FAA-2021-0849; Airspace Docket No. 21-ACE-17) and be submitted in
triplicate to the Docket Management Facility (see the ADDRESSES section
for address and phone number). You may also submit comments through the
internet at https://www.regulations.gov.
    Commenters wishing the FAA to acknowledge receipt of their comments
on this action must submit with those comments a self-addressed,
stamped postcard on which the following statement is made: ``Comments
to FAA Docket No. FAA-2021-0849; Airspace Docket No. 21-ACE-17.'' The
postcard will be date/time stamped and returned to the commenter.
    All communications received on or before the specified comment
closing date will be considered before taking action on the proposed
rule. The proposal contained in this action may be changed in light of
comments received. All comments submitted will be available for
examination in the public docket both before and after the comment
closing date. A report summarizing each substantive public contact with
FAA personnel concerned with this rulemaking will be filed in the
docket.

Availability of NPRMs

    An electronic copy of this document may be downloaded through the
internet at https://www.regulations.gov. Recently published rulemaking
documents can also be accessed through the FAA's web page at https://www.faa.gov/air_traffic/publications/airspace_amendments/.
    You may review the public docket containing the proposal, any
comments received and any final disposition in person in the Dockets
Office (see the ADDRESSES section for address and phone number) between
9:00 a.m. and 5:00 p.m., Monday through Friday, except Federal
holidays. An informal docket may also be examined during normal
business hours at the office of the Operations Support Group, Central
Service Center, Federal Aviation Administration, 10101 Hillwood
Parkway, Fort Worth, TX 76177.

Availability and Summary of Documents for Incorporation by Reference

    This document proposes to amend FAA Order JO 7400.11F, Airspace
Designations and Reporting Points, dated August 10, 2021, and effective
September 15, 2021. FAA Order JO 7400.11F is publicly available as
listed in the ADDRESSES section of this document. FAA Order JO 7400.11F
lists Class A, B, C, D, and E airspace areas, air traffic service
routes, and reporting points.

Background

    The FAA is planning to decommission the Oswego, KS, VOR in July
2022. The Oswego VOR was one of the candidate VORs identified for
discontinuance by the FAA's VOR MON program and listed in the Final
policy statement notice, ``Provision of Navigation Services for the
Next Generation Air Transportation System (NextGen) Transition to
Performance-Based Navigation (PBN) (Plan for Establishing a VOR Minimum
Operational Network),'' published in the Federal Register of July 26,
2016 (81 FR 48694), Docket No. FAA-2011-1082.
    Although the VOR portion of the Oswego VOR/DME is planned for
decommissioning, the co-located Distance Measuring Equipment (DME) is
being retained to support NextGen PBN flight procedure requirements.
    The VOR Federal airways effected by the Oswego VOR decommissioning
are V-161, V-190, V-307, and V-516. With the planned decommissioning of
the Oswego VOR, the remaining ground-based NAVAID coverage in the area
is insufficient to enable the continuity of the affected airways. As
such, proposed modifications to V-161 and V-307 would result in gaps in
the airways and to V-190 would result in the airway being shortened, as
well as the proposed revocation of V-516 in its entirety. To overcome
the proposed modifications and revocation to the affected airways,
instrument flight rules (IFR) traffic could use portions of adjacent
VOR Federal airways, including V-63, V-73, V-88, V-131, V-132, V-140,
and V-350, or receive air traffic control (ATC) radar vectors to fly
around or through the affected area. Additionally, IFR pilots equipped
with RNAV capabilities could also navigate point to point using the

existing fixes that would remain in place to support continued
operations though the affected area. Visual flight rules (VFR) pilots
who elect to navigate via the affected ATS routes could also take
advantage of the adjacent ATS routes or ATC services listed previously.

The Proposal

    The FAA is proposing an amendment to 14 CFR part 71 to amend VOR
Federal airways V-161, V-190, and V-307, and remove VOR Federal airway
V-516 due to the planned decommissioning of the Oswego, KS, VOR. The
proposed VOR Federal airway actions are described below.
    V-161: V-161 currently extends between the Three Rivers, TX, VOR/
Tactical Air Navigation (VORTAC) and the Gopher, MN, VORTAC; and
between the International Falls, MN, VOR/DME and the Winnipeg, MB,
Canada, VORTAC, excluding the airspace within Canada. The FAA proposes
to remove the airway segment overlying the Oswego, KS, VOR/DME between
the Tulsa, OK, VORTAC and Butler, MO, VORTAC. The unaffected portions
of the existing airway would remain as charted.
    V-190: V-190 currently extends between the Phoenix, AZ, VORTAC and
the Springfield, MO, VORTAC. The FAA proposes to remove the airway
segment overlying the Oswego, KS, VOR/DME between the Bartlesville, OK,
VOR/DME and Springfield, MO, VORTAC. The unaffected portions of the
existing airway would remain as charted.
    V-307: V-307 currently extends between the Harrison, AR, VOR/DME
and the Omaha, IA, VORTAC. The FAA proposes to remove the airway
segment overlying the Oswego, KS, VOR/DME between the Neosho, MO, VOR/
DME and Chanute, KS, VOR/DME. Additional changes to other portions of
the airway have been proposed in a separate NPRM. The unaffected
portions of the existing airway would remain as charted.
    V-516: V-516 currently extends between the Pioneer, OK, VORTAC and
the Oswego, KS, VOR/DME. The FAA proposes to remove the airway in its
entirety.
    All NAVAID radials listed in the VOR Federal airway descriptions
below are unchanged and stated in True degrees.
    VOR Federal airways are published in paragraph 6010(a) of FAA Order
JO 7400.11F, dated August 10, 2021, and effective September 15, 2021,
which is incorporated by reference in 14 CFR 71.1. The VOR Federal
airways listed in this document would be published subsequently in FAA
JO 7400.11.
    FAA Order JO 7400.11, Airspace Designations and Reporting Points,
is published yearly and effective on September 15.

Regulatory Notices and Analyses

    The FAA has determined that this proposed regulation only involves
an established body of technical regulations for which frequent and
routine amendments are necessary to keep them operationally current.
It, therefore: (1) Is not a ``significant regulatory action'' under
Executive Order 12866; (2) is not a ``significant rule'' under
Department of Transportation (DOT) Regulatory Policies and Procedures
(44 FR 11034; February 26, 1979); and (3) does not warrant preparation
of a regulatory evaluation as the anticipated impact is so minimal.
Since this is a routine matter that will only affect air traffic
procedures and air navigation, it is certified that this proposed rule,
when promulgated, will not have a significant economic impact on a
substantial number of small entities under the criteria of the
Regulatory Flexibility Act.

Environmental Review

    This proposal will be subject to an environmental analysis in
accordance with FAA Order 1050.1F, ``Environmental Impacts: Policies
and Procedures,'' prior to any FAA final regulatory action.

List of Subjects in 14 CFR Part 71

    Airspace, Incorporation by reference, Navigation (air).

The Proposed Amendment

    In consideration of the foregoing, the Federal Aviation
Administration proposes to amend 14 CFR part 71 as follows:

PART 71--DESIGNATION OF CLASS A, B, C, D, AND E AIRSPACE AREAS; AIR
TRAFFIC SERVICE ROUTES; AND REPORTING POINTS

0
1. The authority citation for part 71 continues to read as follows:

    Authority:  49 U.S.C. 106(f), 106(g); 40103, 40113, 40120; E.O.
10854, 24 FR 9565, 3 CFR, 1959-1963 Comp., p. 389.

Sec.  71.1   [Amended]

0
2. The incorporation by reference in 14 CFR 71.1 of FAA Order JO
7400.11F, Airspace Designations and Reporting Points, dated August 10,
2021, and effective September 15, 2021, is amended as follows:

Paragraph 6010(a) Domestic VOR Federal Airways.

* * * * *

V-161 [Amended]

    From Three Rivers, TX; Center Point, TX; Llano, TX; INT Llano
026[deg] and Millsap, TX, 193[deg] radials; Millsap; Bowie, TX;
Ardmore, OK; Okmulgee, OK; to Tulsa, OK. From Butler, MO; Napoleon,
MO; Lamoni, IA; Des Moines, IA; Mason City, IA; Rochester, MN;
Farmington, MN; to Gopher, MN. From International Falls, MN; to
Winnipeg, MB, Canada, excluding the airspace within Canada.
* * * * *

V-190 [Amended]

    From Phoenix, AZ; St. Johns, AZ; Albuquerque, NM; Fort Union,
NM; Dalhart, TX; Mitbee, OK; INT Mitbee 059[deg] and Pioneer, OK,
280[deg] radials; Pioneer; INT Pioneer 094[deg] and Bartlesville,
OK, 256[deg] radials; to Bartlesville.
* * * * *

V-307 [Amended]

    From Harrison, AR; to Neosho, MO. From Chanute, KS; Emporia, KS;
INT Emporia 336[deg] and Pawnee City, NE, 194[deg] radials; Pawnee
City; to Omaha, IA.
* * * * *

V-516 [Removed]

* * * * *

    Issued in Washington, DC, on October 26, 2021.
Michael R. Beckles,
Acting Manager, Rules and Regulations Group.
[FR Doc. 2021-23716 Filed 11-1-21; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register Volume 83, Number 15 (Tuesday, January 23, 2018)]
[Rules and Regulations]
[Pages 3067-3068]
[FR Doc No: 2018-01172]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 71

[Docket No. FAA-2017-1060; Airspace Docket No. 17-AEA-19]

Amendment of Class E Airspace; Kane, PA

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule; technical amendment.

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SUMMARY: This action amends the legal description of the Class E
airspace extending upward from 700 feet above the surface at Kane
Community Hospital Heliport, Kane, PA, by correcting the geographic
coordinates of the heliport and point in space coordinates. This action
does not affect the boundaries or operating requirements of the
airspace.

DATES: Effective 0901 UTC, March 29, 2018. The Director of the Federal
Register approves this incorporation by reference action under title 1,
Code of Federal Regulations, part 51, subject to the annual revision of
FAA Order 7400.11 and publication of conforming amendments.

ADDRESSES: FAA Order 7400.11.B Airspace Designations and Reporting
Points, and subsequent amendments can be viewed online at http://www.faa.gov/airtraffic/publications/. For further information, you can
contact the Airspace Policy and Regulations Group, Federal Aviation
Administration, 800 Independence Avenue SW, Washington,

DC 20591; telephone:<PHONE_NUMBER>. The Order is also available for
inspection at the National Archives and Records Administration (NARA).
For information on the availability of this material at NARA, call
(202) 741-6030, or go to https://www.archives.gov/federal-register/cfr/ibr-locations.html.
    FAA Order 7400.11, Airspace Designations and Reporting Points, is
published yearly and effective on September 15.

FOR FURTHER INFORMATION CONTACT:  John Fornito, Operations Support
Group, Eastern Service Center, Federal Aviation Administration, P.O.
Box 20636, Atlanta, Georgia 30320; telephone<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Authority for This Rulemaking

    The FAA's authority to issue rules regarding aviation safety is
found in Title 49 of the U.S. Code. Subtitle 1, Section 106, describes
the authority of the FAA Administrator. Subtitle VII, Aviation
Programs, describes in more detail the scope of the agency's authority.
This rulemaking is promulgated under the authority described in
Subtitle VII, Part A, Subpart I, Section 40103. Under that section, the
FAA is charged with prescribing regulations to assign the use of
airspace necessary to ensure the safety of aircraft and the efficient
use of airspace. This regulation is within the scope of that authority
as it makes a clerical correction to the geographic coordinates of Kane
Community Hospital Heliport, Kane, PA.

History

    The FAA Aeronautical Information Services branch found the Class E
airspace extending upward from 700 feet above the surface at Kane
Community Hospital Heliport, Kane, PA, along with the related point in
space coordinates, were incorrect as published in FAA Order 7400.11B,
Airspace Designations and Reporting Points. The latitude degree for the
heliport and the longitude degree for the point in space coordinates
were incorrect in the Order.
    A clerical amendment in the legal description also is made to the
airspace designation, removing the name of the town listed before the
airport name description.
    Class E airspace designations are published in paragraph 6005 of
FAA Order 7400.11B dated August 3, 2017, and effective September 15,
2017, which is incorporated by reference in 14 CFR part 71.1. The Class
E airspace designations listed in this document will be published
subsequently in the Order.

Availability and Summary of Documents for Incorporation by Reference

    This document amends FAA Order 7400.11B, Airspace Designations and
Reporting Points, dated August 3, 2017, and effective September 15,
2017. FAA Order 7400.11B is publicly available as listed in the
ADDRESSES section of this document. FAA Order 7400.11B lists Class A,
B, C, D, and E airspace areas, air traffic service routes, and
reporting points.

The Rule

    This action amends Title 14 Code of Federal Regulations (14 CFR)
part 71 by correcting the geographic coordinates of the heliport
reference point and point in space coordinates of Kane Community
Hospital Heliport in Class E airspace extending upward from 700 feet
above the surface to be in concert with the FAA's aeronautical
database.
    This is an administrative change and does not affect the
boundaries, or operating requirements of the airspace, therefore,
notice and public procedure under 5 U.S.C. 553(b) are unnecessary.

Regulatory Notices and Analyses

    The FAA has determined that this regulation only involves an
established body of technical regulations for which frequent and
routine amendments are necessary to keep them operationally current.
Therefore, this regulation: (1) Is not a ``significant regulatory
action'' under Executive Order 12866; (2) is not a ``significant rule''
under DOT Regulatory Policies and Procedures (44 FR 11034; February 26,
1979); and (3) does not warrant preparation of a regulatory evaluation
as the anticipated impact is so minimal. Since this is a routine matter
that only affects air traffic procedures and air navigation, it is
certified that this rule, when promulgated, does not have a significant
economic impact on a substantial number of small entities under the
criteria of the Regulatory Flexibility Act.

Environmental Review

    The FAA has determined that this action qualifies for categorical
exclusion under the National Environmental Policy Act in accordance
with FAA Order 1050.1F, ``Environmental Impacts: Policies and
Procedures,'' paragraph 5-6.5.a. This airspace action is not expected
to cause any potentially significant environmental impacts, and no
extraordinary circumstances exist that warrant preparation of an
environmental assessment.

Lists of Subjects in 14 CFR Part 71

    Airspace, Incorporation by reference, Navigation (air).

Adoption of the Amendment

    In consideration of the foregoing, the Federal Aviation
Administration amends 14 CFR part 71 as follows:

PART 71--DESIGNATION OF CLASS A, B, C, D, AND E AIRSPACE AREAS; AIR
TRAFFIC SERVICE ROUTES; AND REPORTING POINTS

0
1. The authority citation for part 71 continues to read as follows:

    Authority:  49 U.S.C. 106(g); 40103, 40113, 40120; E.O. 10854,
24 FR 9565, 3 CFR, 1959-1963 Comp., p. 389.

Sec.  71.1  [Amended]

0
2. The incorporation by reference in 14 CFR 71.1 of Federal Aviation
Administration Order 7400.11B, Airspace Designations and Reporting
Points, dated August 3, 2017, effective September 15, 2017, is amended
as follows:

Paragraph 6005 Class E Airspace Areas Extending Upward From 700
Feet or More Above the Surface of the Earth.

* * * * *

AEA PA E5 Kane, PA [Amended]

Kane Community Hospital Heliport, Kane, PA
    (Lat. 41[deg]40'16'' N, long. 78[deg]49'04'' W)
Point in Space Coordinates
    (Lat. 41[deg]39'58'' N, long. 78[deg]52'09'' W)

    That airspace extending upward from 700 feet above the surface
within a 6-mile radius of the Point in Space coordinates serving
Kane Community Hospital Heliport.

    Issued in College Park, Georgia, on January 16, 2018.
Ryan W. Almasy,
Manager, Operations Support Group, Eastern Service Center, Air Traffic
Organization.
[FR Doc. 2018-01172 Filed 1-22-18; 8:45 am]
 BILLING CODE 4910-13-P


[Federal Register Volume 82, Number 145 (Monday, July 31, 2017)]
[Notices]
[Page 35578]
[FR Doc No: 2017-16040]

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DEPARTMENT OF TRANSPORTATION

Office of the Assistant Secretary for Research and Technology
(OST-R) Notice of Request for Clearance of a New Information
Collection: Annual Tank Car Facility Survey

AGENCY: Bureau of Transportation Statistics (BTS) Office of the
Assistant Secretary for Research and Technology (OST-R), DOT.

ACTION: Notice and request for comments.

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

SUMMARY: In accordance with the requirements of section 3506(c)(2)(A)
of the Paperwork Reduction Act of 1995, this notice announces the
intention of the BTS to request the Office of Management and Budget's
(OMB's) approval for an information collection from tank car facilities
to obtain an estimate of tank cars projected to be modified or built to
the new safer Department of Transportation (DOT) standards. A summary
report of survey findings will be submitted to Congress as well as
published by BTS on the BTS Web page.

DATES: Comments must be submitted on or before August 30, 2017.

FOR FURTHER INFORMATION CONTACT: Clara Reschovsky,<PHONE_NUMBER>, Tank
Car Facility Survey Project Manager, BTS, OST-R, Department of
Transportation, 1200 New Jersey Ave. SE., Room E34-409, Washington, DC
20590. Office hours are from 7:30 a.m. to 5:00 p.m., E.T., Monday
through Friday, except Federal holidays.

SUPPLEMENTARY INFORMATION:
    Title: Annual Tank Car Facility Survey.
    Type of Request: Approval for a new information collection.
    Affected Public: There are approximately 140 tank car facilities
with the capacity to manufacture or retrofit tank cars capable of
carrying Class 3 flammable liquids nationwide.
    Abstract: Section 7308(c) of the Fixing America's Surface
Transportation Act (Pub. L. 114-94; the ``FAST Act'') directs the
Secretary of Transportation to conduct a survey of tank car facilities
to obtain an estimate of tank cars projected to be modified or built to
the new safer Department of Transportation (DOT) Specification 117 or
117R. Over time, this data collection will inform Congress as well as
the Department of Transportation as to industry's progress in upgrading
the nation's fleet of rail cars to be safer in the event of an incident
involving tank cars carrying Class 3 Flammable liquids. BTS intends to
collect information from tank car retrofitting and manufacturing
facilities on the planned and projected number of tank cars to be
retrofitted or manufactured beginning the next calendar year and
annually thereafter until 2029. Any facility identified with the
capacity to modify or build new tank cars to the 117 or 117R
specification, as described in Section 7308(c) of the FAST Act will be
included in the survey identified in this notice and is requested to
submit the results to the Bureau of Transportation Statistics (BTS) no
later than 60 days upon request. This will be a voluntary data
collection. Individual responses to the survey will be kept
confidential and a summary report of aggregate findings will be
provided to:
    (1) The Committee on Commerce, Science, and Transportation of the
Senate; and
    (2) The Committee on Transportation and Infrastructure of the House
of Representatives. In addition, this summary report will also be
published to the BTS Web page.
    Data Confidentiality Provisions: The Annual Tank Car Facility
Survey may collect confidential business information. The
confidentiality of these data will be protected under Title V of the E-
Government Act, the Confidential Information Protection and Statistical
Efficiency Act of 2002 (CIPSEA). In accordance with this legislation,
individual responses will not be disclosed in any direct or indirect
manner and only aggregated statistical information will be made
available through reports.
    Frequency: This survey will be updated every year until 2029.
    Estimated Average Burden per Response: The burden per respondent is
estimated to be an average of 30 minutes. This includes the time
required to gather records as well as respond to the survey.
    Estimated Total Annual Burden: Across the nation there are
approximately 400 tank car facilities that are currently registered or
certified to build or modify tank cars. However, the majority of these
do not have the capacity to modify or build to the 117 or 117R
Specifications. It is estimated that, at most, 140 tank car shops
possess the required capacity to build or modify to these new safer
requirements. The total annual burden is estimated to be 70 hours (that
is 30 minutes per respondent for 140 respondents equals 4,200 minutes).
    Response to Comments: A 60-day notice requesting public comment was
issued in the Federal Register on March 22, 2017 (Volume 82, Number 54;
pages14799-14800). No comments were received.
    Public Comments Invited: Interested parties are invited to send
comments regarding any aspect of this information collection,
including, but not limited to: (1) The necessity and utility of the
information collection for the proper performance of the functions of
the DOT; (2) the accuracy of the estimated burden; (3) ways to enhance
the quality, utility, clarity and content of the collected information;
and (4) ways to minimize the collection burden without reducing the
quality of the collected information. Send comments to the Office of
Information and Regulatory Affairs, Office of Management and Budget,
725 17th Street NW., Washington, DC 20503, Attention: BTS Desk Officer.

    Issued in Washington, DC, on this 25th day of July, 2017.
Patricia Hu,
Director, Bureau of Transportation Statistics, Office of the Assistant
Secretary for Research and Technology.
[FR Doc. 2017-16040 Filed 7-28-17; 8:45 am]
 BILLING CODE 4910-9X-P


[Federal Register Volume 80, Number 136 (Thursday, July 16, 2015)]
[Notices]
[Pages 42137-42139]
[FR Doc No: 2015-17396]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75423; File No. SR-NASDAQ-2015-070]

Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change to
Relating to Non-Penny Pilot Options Fees

July 10, 2015.
    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 June 30, 2015, The NASDAQ Stock Market LLC (``Nasdaq'' or
``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or ``Commission'') the proposed rule change as described in
Items I, II, and III, below, which Items have been prepared by the
Exchange. The Commission is publishing this notice to solicit comments
on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \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 the Exchange's transaction fees at
chapter XV, section 2 entitled ``NASDAQ Options Market--Fees and
Rebates,'' which governs pricing for NASDAQ members using the NASDAQ
Options Market (``NOM''), NASDAQ's facility for executing and routing
standardized equity and index options.
    While the changes proposed herein are effective upon filing, the
Exchange has designated the amendments become operative on July 1,
2015.
    The text of the proposed rule change is available on the Exchange's
Web site at http://nasdaq.cchwallstreet.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 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 amend the Non-Penny Pilot Options \3\ Fees
for Removing Liquidity \4\ for all market participants, except
Customers.\5\ The Exchange is also proposing to remove all fees for
options overlying the PHLX Semiconductor Sector\SM\ (SOX\SM\).
---------------------------------------------------------------------------

    \3\ The Penny Pilot was established in March 2008 is currently
expanded and extended through June 30, 2015. See Securities Exchange
Act Release Nos. 57579 (March 28, 2008), 73 FR 18587 (April 4, 2008)
(SR-NASDAQ-2008-026) (notice of filing and immediate effectiveness
establishing Penny Pilot); 60874 (October 23, 2009), 74 FR 56682
(November 2, 2009)(SR-NASDAQ-2009-091) (notice of filing and
immediate effectiveness expanding and extending Penny Pilot); 60965
(November 9, 2009), 74 FR 59292 (November 17, 2009)(SR-NASDAQ-2009-
097) (notice of filing and immediate effectiveness adding seventy-
five classes to Penny Pilot); 61455 (February 1, 2010), 75 FR 6239
(February 8, 2010) (SR-NASDAQ-2010-013) (notice of filing and
immediate effectiveness adding seventy-five classes to Penny Pilot);
62029 (May 4, 2010), 75 FR 25895 (May 10, 2010) (SR-NASDAQ-2010-053)
(notice of filing and immediate effectiveness adding seventy-five
classes to Penny Pilot); 65969 (December 15, 2011), 76 FR 79268
(December 21, 2011) (SR-NASDAQ-2011-169) (notice of filing and
immediate effectiveness extension and replacement of Penny Pilot);
67325 (June 29, 2012), 77 FR 40127 (July 6, 2012) (SR-NASDAQ-2012-
075) (notice of filing and immediate effectiveness and extension and
replacement of Penny Pilot through December 31, 2012); 68519
(December 21, 2012), 78 FR 136 (January 2, 2013) (SR-NASDAQ-2012-
143) (notice of filing and immediate effectiveness and extension and
replacement of Penny Pilot through June 30, 2013); 69787 (June 18,
2013), 78 FR 37858 (June 24, 2013) (SR-NASDAQ-2013-082) (notice of
filing and immediate effectiveness and extension and replacement of
Penny Pilot through December 31, 2013); 71105 (December 17, 2013),
78 FR 77530 (December 23, 2013) (SR-NASDAQ-2013-154) (notice of
filing and immediate effectiveness and extension and replacement of
Penny Pilot through June 30, 2014); 79 FR 31151 (May 23, 2014), 79
FR 31151 (May 30, 2014) (SR-NASDAQ-2014-056) (notice of filing and
immediate effectiveness and extension and replacement of Penny Pilot
through December 31, 2014); 73686 (December 2, 2014), 79 FR 71477
(November 25, 2014) (SR-NASDAQ-2014-115) (notice of filing and
immediate effectiveness and extension and replacement of Penny Pilot
through June 30, 2015); and 75283 (June 24, 2015), 80 FR 37347 (June
30, 2015) (notice of Filing and Immediate Effectiveness of a
Proposed Rule Change Relating to Extension of the Exchange's Penny
Pilot Program and Replacement of Penny Pilot Issues That Have Been
Delisted). See also NOM Rules, chapter VI, section 5.
    \4\ The Non-Penny Pilot Options pricing includes options
overlying the Nasdaq 100 Index traded under the symbol NDX. For
transactions in NDX, a surcharge of $0.15 per contract will be added
to the Fee for Adding Liquidity and the Fee for Removing Liquidity
in Non-Penny Pilot Options, except for a Customer who will not be
assessed a surcharge.
    \5\ The term ``Customer'' applies to any transaction that is
identified by a Participant for clearing in the Customer range at
The Options Clearing Corporation (``OCC'') which is not for the
account of broker or dealer or for the account of a ``Professional''
(as that term is defined in chapter I, section 1(a)(48)).
---------------------------------------------------------------------------

Non-Penny Pilot Options Fees for Removing Liquidity
    The Exchange proposes to amend the Non-Penny Pilot Options Fees for
Removing Liquidity (including NDX) for Professionals,\6\ Firms,\7\ Non-
NOM Market Makers,\8\ NOM Market Makers \9\ and Broker-Dealers \10\
from $0.89 to $0.94 per contract. Customers will continue to be
assessed a Non-Penny Pilot Options Fee for Removing Liquidity of $0.85
per contract. The Exchange believes that despite this fee increase,
Fees for Removing Liquidity in Non-Penny Pilot Options remain
competitive.
---------------------------------------------------------------------------

    \6\ 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) pursuant to chapter
I, section 1(a)(48). All Professional orders shall be appropriately
marked by Participants.
    \7\ The term ``Firm'' or (``F'') applies to any transaction that
is identified by a Participant for clearing in the Firm range at
OCC.
    \8\ The term ``Non-NOM Market Maker'' or (``O'') is a registered
market maker on another options exchange that is not a NOM Market
Maker. A Non-NOM Market Maker must append the proper Non-NOM Market
Maker designation to orders routed to NOM.
    \9\ The term ``NOM Market Maker'' means a Participant that has
registered as a Market Maker on NOM pursuant to chapter VII, section
2, and must also remain in good standing pursuant to chapter VII,
section 4. In order to receive NOM Market Maker pricing in all
securities, the Participant must be registered as a NOM Market Maker
in at least one security.
    \10\ The term ``Broker-Dealer'' or (``B'') applies to any
transaction which is not subject to any of the other transaction
fees applicable within a particular category.
---------------------------------------------------------------------------

SOX
    The Exchange is proposing to remove all fees related to SOX from
chapter XV, section 2 of the NOM Rules. Currently, chapter XV, section
2 specifies the following fees related to SOX:

                                                                    Fees and Rebates
                                                                 [Per executed contract]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                Non-NOM market
                                             Customer         Professional           Firm              maker         NOM Market maker    Broker-dealer
--------------------------------------------------------------------------------------------------------------------------------------------------------
SOX:
    Fee for Adding Liquidity..........              $0.40              $0.89              $0.89              $0.89              $0.40              $0.89
    Fee for Removing Liquidity........               0.40               0.89               0.89               0.89               0.40               0.89
--------------------------------------------------------------------------------------------------------------------------------------------------------

The Exchange is proposing to remove the above-referenced fees as will
delist SOX from NOM as of July 1, 2015.
2. Statutory Basis
    NASDAQ believes that the proposed rule change is consistent with
the provisions of section 6 of the Act,\11\ in general, and with
section 6(b)(4) and 6(b)(5) of the Act,\12\ in particular, in that it
provides for the equitable allocation of reasonable dues, fees and
other charges among members and issuers and other persons using any
facility or system which NASDAQ operates or controls, and is not
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78f.
    \12\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------

Non-Penny Pilot Options Fees for Removing Liquidity
    The Exchange's proposal to increase the Professional, Firm, Non-NOM
Market Maker, NOM Market Maker and Broker-Dealer Non-Penny Pilot
Options Fees for Removing Liquidity from $0.89 to $0.94 per contract is
reasonable because this fee remains competitive with fees at other
exchanges.\13\ Further, these fees are designed to attract and compete
for order flow to the Exchange, which provides a greater opportunity
for trading by all market participants.\14\ In addition, the increased
Non-Penny Pilot Options Fees for Removing Liquidity are reasonable
because the fees generate revenue that would support the various
rebates which NOM pays for adding liquidity, which attracts order flow
to the Exchange.
---------------------------------------------------------------------------

    \13\ See NYSE Arca's Options Fees and Charges. NYSE Arca
assesses a take liquidity fee of $0.94 per contract to Professional
Customers, Firms and Broker-Dealers in Non-Penny Pilot Options. A
NYSE Market Maker is assessed a take liquidity fee of $0.92 per
contract in Non-Penny Pilot Options. A Customer is assessed a take
liquidity fee of $0.85 per contract in Non-Penny Pilot Options.
    \14\ Id.
---------------------------------------------------------------------------

    The Exchange's proposal to increase the Professional, Firm, Non-NOM
Market Maker, NOM Market Maker and Broker-Dealer Non-Penny Pilot
Options Fee for Removing Liquidity from $0.89 to $0.94 per contract is
equitable and not unfairly discriminatory because the Exchange would
uniformly assess all non-Customers a Non-Penny Pilot Options Fee for
Removing Liquidity of $0.94 per contract. Customers would be assessed
the lowest Non-Penny Pilot Options Fee for Removing Liquidity of $0.85
per contract. Customer order flow enhances liquidity on the Exchange
for the benefit of all market participants and benefits all market
participants by providing more trading opportunities, which attracts
market makers. An increase in the activity of these market participants
in turn facilitates tighter spreads, which may cause an additional
corresponding increase in order flow from other market participants.
SOX
    The Exchange's proposal to remove the Fees for Adding and Removing
Liquidity in options overlying SOX is reasonable because the Exchange
is delisting SOX from NOM on July 1, 2015.
    The Exchange's proposal to remove the Fees for Adding and Removing
Liquidity in options overlying SOX is equitable and not unfairly
discriminatory because the Exchange is delisting SOX from NOM on July
1, 2015 and therefore no market participant will be subject to these
fees.

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

    NASDAQ 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. The Exchange's proposal to increase the
Professional, Firm, Non-NOM Market Maker, NOM Market Maker and Broker-
Dealer Non-Penny Pilot Options Fee for Removing Liquidity from $0.89 to
$0.94 per contract does not create an undue burden on competition. All
market participants, other than Customers, will be assessed a Non-Penny
Pilot Options Fee for Removing Liquidity of $0.94 per contract.
Customers are assessed a lower Non-Penny Pilot Options Fee for Removing
Liquidity because Customer order flow enhances liquidity on the
Exchange for the benefit of all market participants.
    The Exchange's proposal to remove the Fees for Adding and Removing
Liquidity in options overlying SOX does not create an undue burden on
competition because no market participant will be subject to these
fees.

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

    No written comments were either solicited or received.

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

    The foregoing rule change has become effective pursuant to section
19(b)(3)(A)(ii) of the Act.\15\ At any time within 60 days of the
filing of the proposed rule change, the Commission summarily may
temporarily suspend such rule change if it appears to the Commission
that such action is: (i) Necessary or appropriate in the public
interest; (ii) for the protection of investors; or (iii) otherwise in
furtherance of the purposes of the Act. If the Commission takes such
action, the Commission shall institute proceedings to determine whether
the proposed rule should be approved or disapproved.
---------------------------------------------------------------------------

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

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-NASDAQ-2015-070 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NASDAQ-2015-070. 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-NASDAQ-2015-070 and should
be submitted on or before August 6, 2015.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
---------------------------------------------------------------------------

    \16\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2015-17396 Filed 7-15-15; 8:45 am]
BILLING CODE 8011-01-P