[Federal Register: July 15, 2010 (Volume 75, Number 135)]
[Notices]
[Page 41264-41273]
[DOCID:fr15jy10-111]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-62479; File No. SR-NYSEAmex-2010-31]

Self-Regulatory Organizations; NYSE Amex LLC; Notice of Filing of
Amendment Nos. 2 and 3, and Order Granting Accelerated Approval to a
Proposed Rule Change, as Modified by Amendment Nos. 1, 2, and 3
Thereto, To Adopt as a Pilot Program a New Rule Series for the Trading
of Securities Listed on the Nasdaq Stock Market Pursuant to Unlisted
Trading Privileges, and Amending Existing NYSE Amex Equities Rules as
Needed To Accommodate the Trading of Nasdaq-Listed Securities on the
Exchange

July 9, 2010.

I. Introduction

    On March 26, 2010, NYSE Amex LLC (``Exchange'' or ``NYSE Amex'')
filed with the Securities and Exchange Commission (``Commission''),
pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to:
(1) Adopt, as a pilot program, a new NYSE Amex Equities Rule Series
(Rules 500-525) for the trading of securities listed on the Nasdaq
Stock Market (``Nasdaq'') pursuant to unlisted trading privileges
(``UTP''); and (2) amend existing NYSE Amex Equities rules to
accommodate the trading of Nasdaq-listed securities on the Exchange.
Subsequently, on April 6, 2010, NYSE Amex filed Amendment

No. 1 to the proposed rule change. The proposed rule change, as
amended, was published in the Federal Register on April 19, 2010.\3\
The Commission received no comments on the proposal. On June 21, 2010,
NYSE Amex filed Amendment No. 2 to the proposed rule change. On July 9,
2010, NYSE Amex filed Amendment No. 3 to the proposed rule change. This
order provides notice of filing of Amendment Nos. 2 and 3, and grants
accelerated approval to the proposed rule change, as modified by
Amendment Nos. 1, 2, and 3.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 61890 (April 12,
2010), 75 FR 20401 (``Notice'').
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II. Description of the Proposal

A. Overview

    The Exchange proposes to adopt, as a pilot program, a new NYSE Amex
Equities Rule Series to specifically govern the trading of any security
listed on the Nasdaq that (1) is designated as an ``eligible security''
under the Joint Self-Regulatory Organization Plan Governing the
Collection, Consolidation and Dissemination of Quotation and
Transaction Information for Nasdaq-Listed Securities Traded on
Exchanges on an Unlisted Trading Privilege Basis, as amended (``UTP
Plan''); and (2) has been admitted to dealings on the Exchange pursuant
to UTP in accordance with Section 12(f) of the Act \4\ (collectively,
``Nasdaq Securities''). The Exchange proposes to trade Nasdaq
Securities on the same systems and facilities it uses to trade its
listed securities in accordance with the same trading rules, subject to
certain exceptions:
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    \4\ 15 U.S.C. 78l(f).
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     There will not be an opening or closing auction for Nasdaq
Securities traded on the Exchange. Trading in Nasdaq Securities will
open on a quote at 9:30 a.m. and will close at 4 p.m., or immediately
thereafter under certain circumstances, using the last sale on the
Exchange as the Closing Price.
     ``Good 'til Canceled'' (``GTC'') Orders and ``Stop''
Orders for Nasdaq Securities will be modified to provide that any GTC
or Stop Orders that are unexecuted at the close of trading will be
treated as Day Orders and canceled. In addition, the Exchange will not
accept limit or market ``At the Close'' (``MOC/LOC''), ``At the
Opening'' (``OPG''), ``Closing Offset'' (``CO'') or ``Good 'til Cross''
(``GTX'') Orders for the trading of Nasdaq Securities. All other order
types will be accepted.
     Each Nasdaq Security will be assigned one Designated
Market Maker (``DMM'') Unit, though the allocation process will be
streamlined to follow the approach used by the Exchange for
Supplemental Liquidity Providers (``SLPs'').
     For those Nasdaq Securities in which it is registered, a
DMM Unit will be responsible for the affirmative obligation of
maintaining a fair and orderly market in accordance with Exchange
rules, subject to an enhanced quoting requirement and a phased-in
implementation of Depth Guidelines and Price Participation Points
(``PPPs'') to enable the Exchange to collect trading data adequate to
calculate such guidelines.
     Trading in Nasdaq Securities will be subject to rules that
are substantially similar to FINRA's ``Manning Rule,'' rather than Rule
92--NYSE Amex Equities.
     The Exchange's audit trail rules, including Rules 123- and
132B-NYSE Amex Equities, will apply to the trading of Nasdaq Securities
on the Exchange, except that those members and member organizations
that are also FINRA members and subject to FINRA's Rule 7400 Series
(``Order Audit Trail System'' or ``OATS'') will be exempt from Rules
123- and 132B-NYSE Amex Equities.
    NYSE Amex will trade Nasdaq-listed equities and any other Nasdaq-
listed security that trades like an equity security (e.g., rights,
warrants), and will also trade one Nasdaq-listed exchange traded fund
(``ETF''), the Invesco PowerShares QQQTM Exchange Traded
Fund (``QQQs'').
    The Exchange intends to implement trading of Nasdaq Securities
using a phased-in approach, and to expand the program to eventually
include all securities listed on Nasdaq. The Exchange proposes that
this pilot program commence on the date the Commission approves the
proposed rule change, and that it continue until the earlier of the
Commission's approval to make such pilot program permanent or September
30, 2010.

B. Applicability and Trading Hours

    Trading of Nasdaq Securities on the Exchange shall be governed by
existing NYSE Amex Equities rules, as well as the new Rule 500 Series.
To the extent the existing rules conflict with the Rule 500 Series, the
Rule 500 series will control.
    Pursuant to proposed Rule 502, the Exchange will trade Nasdaq
Securities during regular trading hours in accordance with existing
Rule 51. The Exchange also will permit Nasdaq Securities to trade in
the Exchange's ``Off-Hours Trading Facility.'' Due to modifications to
the opening and closing for Nasdaq Securities, a member or member
organization will not be permitted to make any bid, offer, or
transaction for a Nasdaq Security on Exchange systems, or route an
order for a Nasdaq Security to another market center from Exchange
systems, before 9:30 a.m. or after the close of the Off-Hours Trading
session.

C. Assignment of Nasdaq Securities to DMMs and SLPs

    The Exchange proposes to trade Nasdaq Securities within the
existing DMM and SLP framework used to trade its listed securities. The
Exchange will create a ``Nasdaq Securities Liaison Committee,''
consisting of NYSE Euronext employees of the Operations and U.S.
Markets Divisions,\5\ which will be responsible for reviewing and
admitting Nasdaq Securities for trading on the Exchange. After
admitting a Nasdaq Security to dealings on the Exchange, the Nasdaq
Securities Liaison Committee also will assign the security to a DMM
Unit and one or more SLPs.\6\ No more than one DMM Unit will be
assigned to any Nasdaq Security, and a member organization will not be
permitted to be registered as both the DMM Unit and an SLP for the same
Nasdaq Security. In its discretion, the Nasdaq Securities Liaison
Committee also may reassign one or more Nasdaq Securities to a
different DMM Unit or to a different SLP or SLPs.
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    \5\ A representative of NYSE Regulation Inc. (``NYSER'') would
act as an ad hoc member of the Committee.
    \6\ See proposed NYSE Amex Equities Rule 501.
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    Existing Exchange DMM Units will be automatically eligible for the
assignment of Nasdaq Securities, so long as they qualify in accordance
with Rules 98- and 103B(II)-NYSE Amex Equities, and proposed Rule
504(b)--NYSE Amex Equities.\7\
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    \7\ The Exchange proposes to amend Rules 98(b)(2) (definition of
``DMM unit'') and 98(b)(15) (definition of ``Related products'')--
NYSE Amex Equities to accommodate the trading of Nasdaq Securities
on the Exchange.
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    The Exchange intends to admit the QQQ to trading, and has proposed
a set of special requirements governing the assignment of the QQQs and
its component securities.\8\
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    \8\ See proposed Rule 504--NYSE Amex Equities. The Exchange
stated that it will review proposed Rule 504--NYSE Amex Equities and
the provisions governing the allocation of the QQQs and its
component securities if the Exchange's share of the market for the
Nasdaq Securities it trades exceeds 10% of the consolidated Tape C
aggregate average daily trading volume. See id., 75 FR at 20405.
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D. Integration of NYSE Amex-Listed Securities and Nasdaq Securities at
Posts on the Trading Floor

    The Exchange anticipates that some DMM Units currently registered
on the NYSE will seek to register as DMM

Units on the Exchange to trade Nasdaq Securities. Under Exchange rules,
all current NYSE members and member organizations are deemed members
and member organizations of the Exchange, and DMM Units are
automatically granted an NYSE Amex Equities trading license.\9\ An NYSE
DMM Unit that wishes to trade Nasdaq Securities and that is not already
registered as a DMM Unit on the Exchange will need to register as such
with the Exchange to ensure proper tracking and systems configuration.
Similarly, each DMM will need to register with the Exchange to confirm
that it meets all applicable registration requirements and to ensure
proper tracking and systems set-up. In addition, an NYSE DMM Unit
seeking to register as a DMM Unit on the Exchange will also need to
advise FINRA, so that FINRA can assess whether such registration
triggers different and/or additional financial and operational
requirements, including but not limited to those pertaining to net
capital.
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    \9\ See Rules 2.10- and 2.20-NYSE Amex Equities.
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    Proposed Rules 103B(IX) and 504(d)-NYSE Amex Equities will require
that Nasdaq Securities be allocated for trading, and DMM Units shall
trade such securities, only at panels exclusively designated for
trading listed and/or Nasdaq Securities on the Exchange.
    Exchange-listed equities securities currently trade on Posts 1 and
2 on the Trading Floor. However, there are not enough panels on those
posts to accommodate the trading of additional hundreds of Nasdaq
Securities. To accommodate the trading of Nasdaq Securities, the
Exchange needs to trade Exchange-listed and Nasdaq Securities on
additional posts. Therefore, the Exchange proposes to amend Rule 103B-
NYSE Amex Equities to permit Exchange-listed securities and securities
admitted to dealings on the Exchange on a UTP basis to trade on posts
throughout the Trading Floor. To prevent any confusion that could arise
among members trading both NYSE-listed and Exchange-listed or traded
securities, which trade under different rules, proposed Rule 103B(IX)
would provide that Exchange-listed and/or traded (i.e. Nasdaq
Securities) securities shall be assigned only to panels designated for
the trading of such securities.
    A DMM Unit that is registered to trade NYSE- and Exchange-listed
securities, as well as Nasdaq Securities, could trade all such
securities at the same post. However, a DMM Unit staff person would not
be permitted to simultaneously trade both NYSE and NYSE Amex/Nasdaq
securities, and the DMM Unit would need to commit staff to trade NYSE-
listed securities separate from staff committed to trade Exchange-
listed or traded securities at any given time during the trading day.
However, intraday staff moves between panels would be permitted.

E. Security Allocation and Reallocation

    Rule 103B-NYSE Amex Equities prescribes the criteria and procedures
for the allocation and/or reallocation of NYSE Amex-listed equities
securities to registered and qualified DMM Units. In particular, part
IX of the rule currently provides that Exchange-listed equity
securities must be allocated to posts on the Trading Floor that are
exclusively designated for the trading of NYSE Amex securities.

F. Assignments to SLPs

    An Exchange member or member organization may apply to be an SLP in
Nasdaq Securities and will be eligible for the assignment of Nasdaq
Securities once it registers and qualifies as an SLP in accordance with
Rule 107B-NYSE Amex Equities. As with NYSE-registered DMMs and DMM
Units, an NYSE-registered SLP is automatically deemed a member
organization of NYSE Amex Equities under Rule 2.10-NYSE Amex Equities.
An NYSE-registered SLP that wishes to trade Nasdaq Securities as an
NYSE Amex SLP must register with and be approved by the Exchange as an
SLP in accordance with all applicable NYSE Amex Equities Rules.
    The Nasdaq Securities Liaison Committee will assign one or more
SLPs to Nasdaq Securities for trading on the Exchange. A member
organization cannot be both the DMM Unit and an SLP for the same Nasdaq
Security. If an SLP withdraws from its status as an SLP, its Nasdaq
Securities will be reassigned to a different SLP(s) in accordance with
Rule 107B-NYSE Amex Equities.

G. Units of Trading; Bids and Offers; Dissemination of Quotations;
Priority

    Proposed Rule 506-NYSE Amex Equities prescribes the basic unit of
trading for Nasdaq Securities, and addresses some requirements for bids
and offers, the dissemination of quotations, and priority and parity of
executions of Nasdaq Securities. Nasdaq Securities will be traded
almost exactly as the Exchange's listed securities.\10\
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    \10\ See Notice, supra note 3, 75 FR at 20405-06, for a detailed
discussion of the trading rules applicable to Nasdaq Securities.
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H. Openings and Closings

    The Exchange will not conduct an opening or closing auction in
Nasdaq Securities. Instead, NYSE Amex will open trading on a quote at
9:30 a.m. and close on the last sale on the Exchange at 4 p.m.
1. Openings
    Under proposed Rule 508(a), trading in each Nasdaq Security will
open at 9:30 a.m. or as soon thereafter as possible, or at such other
time as may be specified by the Exchange, based on a quote published by
the DMM Unit assigned to the security. Because Nasdaq Securities will
open on a quote, DMM Units will not be permitted or required to provide
pre-opening or opening indications as prescribed by Rules 15- and 123D-
NYSE Amex Equities. In addition, because the Exchange will not conduct
an opening auction for Nasdaq Securities, DMM Units will not be
permitted or required to hold or represent orders for Nasdaq Securities
pursuant to Rule 115A.20-NYSE Amex Equities. Orders for Nasdaq
Securities shall not be accepted by the Exchange, and will be
systemically blocked, before trading opens on any business day.\11\
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    \11\ The Exchange has filed a proposed rule change to
incorporate the receipt and execution of odd-lot interest into the
round lot market (``trading-in-shares'') and to decommission the use
of the odd-lot system. See Securities Exchange Act Release No. 62303
(June 16, 2010), 75 FR 35865 (June 23, 2010) (SR-NYSEAmex-2010-53).
However, until the implementation of trading-in-shares by the
Exchange, odd-lot orders in Nasdaq Securities that are received by
the Exchange prior to the opening of trading in those securities on
the Exchange will be held and will not be executed until the first
round-lot transaction in each particular security. See section II.U
infra. Open odd-lot orders may be cancelled by the entering firm at
any time.
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2. Closings
    Under Rule 508(b), trading in Nasdaq Securities will not close
based on a closing auction, but will instead close at the end of the
regular trading session at 4 p.m., or at such other time as may be
specified by the Exchange. Except for ``aggregate-price orders'' \12\
or ``closing-price orders'' entered to offset an error entered in the
``Off-Hours Trading Facility'' in accordance with proposed Rule 511-
NYSE Amex Equities, orders for Nasdaq Securities will not be accepted
by the Exchange after the regular trading session on any business
day.\13\
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    \12\ The Exchange is proposing to amend the definition of
``aggregate-price order'' under Rule 900-NYSE Amex Equities to
accommodate trading Nasdaq Securities in the Off-Hours Trading
Facility.
    \13\ These terms are defined under Rule 900-NYSE Amex Equities.
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    The ``Closing Price'' for a Nasdaq Security will be the price of
its last sale on the Exchange at or prior to the close

of regular trading at 4 p.m.\14\ Orders for Nasdaq Securities that are
unexecuted at the close of trading at 4 p.m. shall be cancelled.
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    \14\ See Rules 502- and 508- NYSE Amex Equities. See also
proposed Rule 501-NYSE Amex Equities.
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    When the market for a Nasdaq Security is slow at the close of
trading because of a gap quote situation, the DMM Unit must execute the
final trade in the security in a manner consistent with a fair and
orderly market, with reference to the trading characteristics of the
security at issue, including its price, average daily trading volume
(``ADTV''), average volatility, the prior sale of the security on the
Exchange, and the closing price on the UTP Listing Market.\15\ To
ensure this, Floor Governor approval is required to close a Nasdaq
Security that is ``slow.'' In such circumstances, the DMM will pair off
liquidity to the extent available, and then execute a final trade at or
immediately after the close that will set the Closing Price. All
residual marketable interest for that security received prior to the
close of trading shall first be executed at the Closing Price and then
all unexecuted interest for the security shall be cancelled.
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    \15\ Under proposed Rule 501-NYSE Amex Equities, the Exchange
defines the term ``UTP Listing Market'' to have the same meaning as
the term ``Listing Market,'' as defined under the ``UTP Plan'' (also
defined therein).
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    If an extreme order imbalance at or near the close of the regular
trading session could result in a Closing Price dislocation, the
procedures of Rule 123C(9)-NYSE Amex Equities, which permit the
Exchange to temporarily suspend the hours of operation for the
solicitation and entry of orders into Exchange systems, shall apply.
However, because the Exchange will not conduct a closing auction in
Nasdaq Securities, no other procedures of Rule 123C-NYSE Amex Equities
shall apply to trading in Nasdaq Securities.
    The proposed modifications to the opening and closing of the
trading of Nasdaq Securities require corresponding modifications to the
``GTC'' and ``Stop'' order types. Specifically, GTC Orders and
unelected Stop Orders for Nasdaq Securities that are not fully executed
at the close of the regular trading session shall be treated as Day
Orders and shall be cancelled; they will not remain on the Exchange's
systems overnight. In addition, because the Exchange will not conduct
either an opening or closing auction in Nasdaq Securities, the Exchange
will not accept MOC/LOC, OPG, CO, or GTX Orders for Nasdaq Securities.
All other order types noted in Rule 13-NYSE Amex Equities will be
permitted for the trading of Nasdaq Securities.\16\
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    \16\ See proposed Rule 501--NYSE Amex Equities.
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I. Dealings of DMM Units and SLPs

    As noted above, the Exchange proposes to trade Nasdaq Securities
using the same DMM/SLP framework as currently used for its listed
securities.
1. DMM Units
    DMM Units registered to trade Nasdaq Securities on the Exchange
will be required to fulfill their responsibilities and duties for those
securities in accordance with all applicable Exchange rules and
requirements (``DMM rules''),\17\ subject to two modifications. First,
in lieu of the tiered quoting requirement (5% and 10%) currently in
place for listed securities under Rule 104(a)(1)(A)--NYSE Amex
Equities, proposed Rule 509(a)(1) requires a DMM Unit to have a bid or
offer at the national best bid or national best offer (``inside'') in
each assigned Nasdaq Security an average of at least 10% of the time,
or more, during the regular business hours of the Exchange for each
calendar month.\18\ Second, pursuant to Rules 104(f)(ii)- and (iii)-
NYSE Amex Equities, a DMM Unit is responsible for maintaining price
continuity with reasonable depth for its registered Nasdaq Securities,
in accordance with Depth Guidelines to be published by the Exchange.
However, to give the Exchange time to phase-in appropriate Depth
Guidelines and PPPs, these provisions will not be operative until 18
weeks after the approval of the proposed rule change by the
Commission.\19\
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    \17\ The term ``DMM rules'' is defined in Rule 98--NYSE Amex
Equities.
    \18\ Credit will be given for executions for the liquidity
provided by the DMM Unit. Reserve or other hidden orders entered by
the DMM Unit will not be included in the inside quote calculations.
    \19\ The Exchange believes that a phased-in approach is
appropriate so that Depth Guidelines and PPPs may be calculated
based on actual trading data of Nasdaq Securities on the Exchange.
Accordingly, following implementation and roll-out of the pilot
program, NYSE Amex would collect and analyze 60 days of trade data
and would then implement these guidelines for trading Nasdaq
Securities on the Exchange within 30 calendar days. The 18-week
phase-in period contemplates a two-week period to roll out the pilot
program.
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    As is the case with listed securities, a DMM Unit also will be
responsible for facilitating openings, reopenings, and closings for
each of the Nasdaq Securities in which it is registered, in accordance
with applicable NYSE Amex Equities rules, including the procedures of
proposed Rules 508- and 515-NYSE Amex Equities.\20\ A DMM Unit also
will be responsible for facilitating trading when the market is
``slow'' (such as during a gap quote) \21\ and helping to close Nasdaq
Securities that are subject to an imbalance. Other obligations would
apply, including providing contra side liquidity as needed for the
execution of odd-lot orders in Nasdaq Securities, meeting stabilization
and re-entry requirements, and complying with the net capital
requirements under the Act and Rules 103.20-, 4110-, and 4120-NYSE Amex
Equities.
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    \20\ However, because proposed rules do not provide for opening
and closing auctions in Nasdaq Securities, DMMs would not be
responsible for facilitating openings and closings. The Exchange has
represented that, if it were to amend its rules to provide for
openings and closing in Nasdaq Securities, a DMM would be
responsible for facilitating openings and closings in its assigned
securities.
    \21\ A DMM Unit facilitates trading in slow markets by either
conducting an auction or trading out of the slow market to resume a
``fast'' (i.e. quote-protected) market. It does not mean, however,
that a DMM Unit must participate on the contra-side of the market
when it is slow.
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    The DMM would be the sole market maker on the Exchange in its
registered Nasdaq Securities. The Exchange believes that, because it
would retain obligations that other market participants, both on the
Exchange and in other markets, do not have, a DMM Unit should retain
the benefits of parity and liquidity incentives, as well as the ability
to use the Capital Commitment Schedule (``CCS''),\22\ when trading
Nasdaq Securities.\23\
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    \22\ See Rule 1000(d)--NYSE Amex Equities.
    \23\ The Exchange has stated that it will submit a separate fee
filing detailing the rebate structure for trading Nasdaq Securities
at a later date. The Exchange has represented that, although the
price levels will likely differ from the rebate in place for trading
in listed equities, the structure will be similar--specifically,
that rebates will be paid to DMMs, SLPs, and other members
(including Floor brokers) who provide liquidity on the Exchange.
Telephone conversation between Jason Harman, Consultant, NYSE Amex,
and Nathan Saunders, Special Counsel, Division of Trading and
Markets, Commission, on June 9, 2010.
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    In addition, other provisions of existing Exchange rules related to
DMM responsibilities and obligations would be modified:
     DMMs will not be required to obtain Floor Official
approval prior to engaging as a dealer in transactions for Nasdaq
Securities that fall under Rule 79A.20-NYSE Amex Equities.
     Notwithstanding the prescriptions of Rule 36.30-NYSE Amex
Equities governing communications to and from the DMM Unit post on the
Trading Floor, an individual DMM registered in an ETF may use a
telephone connection or order entry terminal at the DMM Unit's post to
enter a proprietary order in the ETF in another market center, in a
component security of such ETF, or in an option or futures contract
related to such ETF, and may use the post

telephone to obtain public market information with respect to such ETF,
options, futures, or component securities. If the order in the
component security of the ETF is to be executed on the Exchange, the
order must be entered and executed in compliance with Rule 112-NYSE
Amex Equities and Rule 11a2-2(T) under the Act, and must be entered
only for the purpose of creating a bona fide hedge for a position in
the ETF. The Exchange is proposing to add this provision to permit DMM
Units registered in an ETF to execute more efficiently hedging
transactions for the security.\24\
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    \24\ The Exchange modeled this provision after a provision in
NYSE Rule 36.30. See Securities Exchange Act Release No. 44616 (July
30, 2001), 66 FR 40761 (August 3, 2001) (SR-NYSE-2001-08) (order
approving amendments to NYSE Rule 36.30).
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2. SLPs
    An SLP registered in one or more Nasdaq Securities must fulfill its
responsibilities and duties for those securities in accordance with all
applicable Exchange rules, including, but not limited to, Rule 107B-
NYSE Amex Equities. The SLP quoting requirements for Nasdaq Securities
shall be the same as for securities listed on the Exchange.

J. Derivative Securities Products

    The Exchange also proposes some specific additional provisions that
will apply to ETFs that are ``new derivative securities products''
traded pursuant to Rule 19b-4(e) under the Act.\25\
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    \25\ 17 CFR 240.19b-4(e).
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    For each such ETF, the Exchange must file a Form 19b-4(e) with the
Commission. In addition, the Exchange will distribute an information
circular prior to the commencement of trading in each such product that
generally includes the same information as contained in the information
circular provided by the UTP Listing Market for the product, including:
(a) The special risks of trading the new product; (b) the Exchange
rules that will apply to the new product, including Rule 405- NYSE Amex
Equities; (c) information about the dissemination of the value of the
underlying assets or indexes; and (d) the risks of trading outside of
the regular trading session for the product due to the lack of
calculation or dissemination of the value of the underlying assets or
index, the intra-day indicative value, or a similar value.
    Members and member organizations that trade these ETFs will be
subject to the prospectus delivery requirements of the Securities Act
of 1933, unless the product is the subject of an order by the
Commission exempting the product from certain prospectus delivery
requirements under Section 24(d) of the Investment Company Act of 1940
or the product is not otherwise subject to prospectus delivery
requirements under the Securities Act of 1933. As a result, members and
member organizations will be required to provide all purchasers of such
an ETF with a written description of the terms and characteristics of
the product at the time confirmation of the first transaction in the
product is delivered to the purchaser. In addition, members and member
organizations will be required to include a written description with
any sales material relating to the product that they provide to
customers or the public. Any other written materials provided by a
member or member organization to customers or the public making
specific reference to the ETF as an investment vehicle must include a
statement that such materials are available.
    Members or member organizations carrying omnibus accounts for non-
members will be required to inform non-members that execution of an
order to purchase an ETF for the omnibus account will be deemed to
constitute agreement by the non-member to make such written description
available to its customers on the same terms as are directly applicable
to members and member organizations under this Rule. Upon request of a
customer, a member or member organization shall also provide a
prospectus for the particular product.
    To accommodate the trading of ETFs that qualify under this rule,
the Exchange also proposes additional requirements for trading halts.
If a temporary interruption occurs in the calculation or wide
dissemination of the intraday indicative value, the value of the
underlying index, portfolio or instrument, or similar value of a
product and the UTP Listing Market halts trading in the product, the
Exchange, upon notification by the UTP Listing Market of such halt due
to such temporary interruption, shall also immediately halt trading in
that product.
    If the interruption in the calculation or wide dissemination of the
intraday indicative value, the value of the underlying index, portfolio
or instrument, or similar value continues as of the commencement of
trading on the Exchange on the next business day, the Exchange shall
not commence trading of the product on that day. If the interruption in
the calculation or wide dissemination of the intraday indicative value,
the value of the underlying index, portfolio or instrument, or similar
value continues, the Exchange may resume trading in the product only if
calculation and wide dissemination of the intraday indicative value,
the value of the underlying index, portfolio or instrument, or similar
value resumes or trading in the product resumes on the UTP Listing
Market.
    For an ETF where a net asset value or disclosed portfolio is
disseminated, the Exchange will immediately halt trading in such
product upon notification by the UTP Listing Market that the net asset
value or disclosed portfolio is not being disseminated to all market
participants at the same time. The Exchange may resume trading in the
product only when dissemination of the net asset value or disclosed
portfolio to all market participants at the same time resumes or
trading in the product resumes on the UTP Listing Market.
    In addition, the Exchange will enter into a comprehensive
surveillance sharing agreement with any market trading components of
the index or portfolio on which the product is based to the same extent
as the UTP Listing Market's rules require the UTP Listing Market to
enter into a comprehensive surveillance sharing agreement with such
markets.

K. Off-Hours Trading

    The Exchange proposes to amend the definition of ``aggregate-price
order'' under Rule 900-NYSE Amex Equities to accommodate trading of
Nasdaq Securities in the Off-Hours Trading Facility. Nasdaq Securities
will be accepted by the Exchange's Off-Hours Trading Facility as part
of an aggregate-price order, or as a closing-price order entered to
offset a transaction made in error, as those terms are defined under
Rule 900-NYSE Amex Equities.

L. LRPs

    In its original proposal, the Exchange proposed to modify the rules
developed for its primary market to add values used to calculate LRPs
for Nasdaq Securities traded on the Exchange. However, in Amendment No.
3, NYSE Arca revised the proposal to provide that LRPs would not apply
to Nasdaq Securities.

M. Trading Ahead of Customer Limit Orders and Customer Market Orders

    Proposed Rules 513- and 514-NYSE Amex Equities prescribe limits on
proprietary trading by a member or member organization holding an
unexecuted customer order in a Nasdaq Security. Generally, that member
or member organization would not be permitted to execute a proprietary
trade for that security at a price that would

satisfy the customer's order without executing the customer's order at
that price. These rules are based on substantially similar existing
FINRA rules and interpretations that prohibit trading ahead of customer
orders.\26\
---------------------------------------------------------------------------

    \26\ See FINRA/NASD Interpretive Material (IM) 2110-2 (Trading
Ahead of Customer Limit Order) and FINRA/NASD Rule 2111 (Trading
Ahead of Customer Market Orders).
---------------------------------------------------------------------------

N. Trading Halts

    Generally, as prescribed in proposed Rule 515-NYSE Amex Equities,
the Exchange will follow all applicable NYSE Amex Equities Rules
governing halts or suspensions, for both regulatory and/or non-
regulatory purposes, of the trading of Nasdaq Securities on the
Exchange, including Rules 51-, 80B-, 80C-, 123D-, and 510-NYSE Amex
Equities.
    In addition, the Exchange will halt or suspend trading in a Nasdaq
Security when trading in that security has been halted or suspended by
the UTP Listing Market for regulatory reasons in accordance with its
rules and/or the UTP Plan. The Exchange will also halt or suspend
trading in a Nasdaq Security when the authority under which the
security trades on the Exchange or the UTP Listing Market has been
revoked. This can occur when the Nasdaq Security is no longer
designated as an ``eligible security'' pursuant to the UTP Plan or is
no longer listed by the UTP Listing Market. Also, if the Exchange has
removed a Nasdaq Security from dealings, trading will be halted or
suspended.
    If trading of a Nasdaq Security is halted or suspended pursuant to
proposed Rule 515-NYSE Amex Equities, trading of the affected security
on the Exchange will resume in accordance with the procedures of
applicable NYSE Amex Equities rules, including Rule 508-NYSE Amex
Equities, the rules of the UTP Listing Market, and/or the UTP Plan. Any
orders for a Nasdaq Security that are unexecuted at the time trading is
halted on the Exchange shall be cancelled, and the Exchange shall not
accept any new orders for the affected security for the duration of the
halt.

O. Reporting and Recordkeeping

    Under the Exchange's current rules, members and member
organizations are required to record and maintain certain details of an
order in an electronic order tracking system (``OTS''). Additionally,
members and member organizations that act as Floor brokers must record
and maintain certain details of an order in the Exchange's Front-End
System Capture (``FESC''). Currently, most of the Exchange's members
and member organizations are FINRA members, and FINRA requires that any
order in a Nasdaq-listed security by a member be reported to OATS,
regardless of where the order is executed. According to the Exchange,
although OATS, OTS, and FESC contain substantially the same order
information, the data are in different formats and the systems are not
directly compatible.
    To overcome this technical obstacle, the Exchange proposed Rule
516-NYSE Amex Equities. This rule would exempt Exchange members or
member organizations that are also FINRA members and subject to OATS
reporting \27\ from the requirements of Rules 123- and 132B-NYSE Amex
Equities. This provision is designed to assist dual NYSE Amex/FINRA
members and member organizations that intend to enter and/or execute
orders in Nasdaq Securities on both the Exchange and other markets.
---------------------------------------------------------------------------

    \27\ See FINRA Rule 7400 (``Order Audit Trail System'').
---------------------------------------------------------------------------

    For dual NYSE Amex/FINRA members, FINRA's OATS rules will apply to
an order in a Nasdaq Security up to when it is routed to the Exchange.
At that point, if the order is transmitted to a Floor broker via an
Exchange system, the Exchange's OTS and FESC requirements will apply to
the order and capture its subsequent handling and execution on the
Exchange.\28\ All Exchange-only, non-FINRA members or member
organizations will be subject to the Exchange's OTS and FESC
requirements exclusively throughout the handling of an order for a
Nasdaq Security.
---------------------------------------------------------------------------

    \28\ The Exchange has sought and received interpretive guidance
from FINRA that FINRA Rule 7440(c)(6) exempts from FINRA's OATS
requirements those orders in Nasdaq Securities received by a Floor
broker that are first routed to the Exchange through Exchange
systems, such as the Common Customer Gateway. See Letter from Brant
K. Brown, Associate General Counsel, FINRA, to Claudia Crowley, NYSE
Regulation, Inc., dated May 21, 2010 (filed with the Commission as
Exhibit 3 to Partial Amendment No. 2 to SR-NYSE-2010-31, dated June
21, 2010).
---------------------------------------------------------------------------

    The Exchange proposes to amend Rules 123-, 132B-, 342-, and 351-
NYSE Amex Equities, which require members and member organizations to
provide any trading information requested by the Exchange, to specify
that they apply to both securities listed on the Exchange and
securities ``traded'' on the Exchange, which include Nasdaq Securities.

P. Clearance and Settlement

    Under proposed Rule 518--NYSE Amex Equities, members and member
organizations that conduct transactions involving Nasdaq Securities on
the Exchange will be required to comply with all applicable NYSE Amex
Equities rules related to clearance and settlement of such
transactions.

Q. Limitation of Liability

    The Exchange will be relying on data feeds from the UTP Listing
Market for the trading of Nasdaq Securities. As a result, the Exchange
proposes to include a specific provision limiting liability for any
loss, damage, claim, or expense arising from any inaccuracy, error,
delay, or omission of any data regarding Nasdaq Securities, including,
but not limited to, the collection, calculation, compilation,
reporting, or dissemination of any Nasdaq Security Information, as
defined in Rule 522--NYSE Amex Equities, except as provided in Rules
17- and 18- NYSE Amex Equities. In addition, the Exchange also
expressly disclaims making any express or implied warranties with
respect to any Nasdaq Security, any Nasdaq Security Information, or the
underlying index, portfolio, or instrument that is the basis for
determining the component securities of an ETF.

R. Jurisdiction

    Rule 2A(b)--NYSE Amex Equities currently provides that the Exchange
has jurisdiction to approve listings applications for securities
admitted to dealings on the Exchange and may also suspend or remove
such securities from trading. The Exchange proposes to amend this rule
to include the admission of Nasdaq Securities to dealings on the
Exchange on a UTP basis.

S. Proposed Amendments to Non-NYSE Amex Equities Rule 476A

    The Exchange proposes to amend Non-NYSE Amex Equities Rule 476A
Part 1A to include certain of the proposed NYSE Amex Equities Rule 500
Series in the Exchange's Minor Rule Violation Plan (``MRVP''). Included
are:
     Rule 502--NYSE Amex Equities prohibition on making a bid,
offer, or transaction, or routing an order, for a Nasdaq Security on or
from Exchange systems before 9:30 a.m. or after the close of the Off-
Hours Trading session.
     Rule 504(b)(5)--NYSE Amex Equities requirement for a DMM
Unit registered in a Nasdaq Security that is an ETF to report the
listed concentration measures.
     Rule 504(b)(6)--NYSE Amex Equities requirement to commit
staff for the trading of NYSE-listed securities separate from that for
the trading of Exchange-listed securities and/or Nasdaq Securities and
prohibition on

trading NYSE-listed securities together with Exchange-listed securities
and/or Nasdaq Securities at the same time.
     Rule 508(a)(2)--NYSE Amex Equities requirement for a DMM
Unit to open trading in Nasdaq Securities at 9:30 a.m. or as soon
thereafter as possible.
     Rule 508(b)(2)--NYSE Amex Equities requirements for
closing a Nasdaq Security in a manual or slow market.
     Rule 509(a)--NYSE Amex Equities requirements for DMM
Units.
     Rule 509(b)--NYSE Amex Equities requirements for DMM
communications from the Floor.
     Rule 510(c)--NYSE Amex Equities requirements for
dissemination and distribution of information for Nasdaq Securities
that are derivative securities products.
     Rule 516--NYSE Amex Equities requirements for reporting
and recordkeeping of transactions in Nasdaq Securities.
     Rule 518--NYSE Amex Equities requirements for clearance
and settlement of transactions in Nasdaq Securities.
    Violations of these Rules will be subject to the fine schedule in
Rule 476A.\29\
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    \29\ For individuals, first offenses may be charged $500, second
offenses may be charged $1,000, and subsequent offenses may be
charged $2,500. For member firms, first offenses may be charged
$1,000, second offenses may be charged $2,500, and subsequent
offenses may be charged $5,000.
---------------------------------------------------------------------------

T. Amendment No. 2

    In Amendment No. 2, the Exchange eliminated proposed Rules 513- and
514-NYSE Amex Equities, regarding prohibitions on proprietary trading
ahead of customer orders, from the proposed MRVP. Also in Amendment No.
2, the Exchange clarified that it has received interpretive guidance
from FINRA regarding OATS recording and reporting obligations for
Exchange Floor brokers.\30\
---------------------------------------------------------------------------

    \30\ See supra note 28.
---------------------------------------------------------------------------

U. Amendment No. 3

    In Amendment No. 3, the Exchange revised the proposal to: (1)
Clarify that, until the implementation of its ``trading-in-shares,''
odd-lot orders in Nasdaq Securities that are received by the Exchange
prior to the opening of trading in those securities on the Exchange
will be held and will not be executed until the first round-lot
transaction in each particular security; and (2) clarifying that
trading in Nasdaq Securities will reopen following a trading halt,
suspension, or pause in the same manner that trading opens at the
beginning of the trading day (i.e., the DMM Unit publishes a quote);
(3) amend proposed Rule 509(a)--NYSE Amex Equities to correct a
drafting error, and clarify that a DMM Unit must maintain a continuous
two-sided quote with reasonable size; (4) delay implementation of the
certain provisions concerning PPPs; (5) remove the application of LRPs
to trading in Nasdaq Securities; (6) add new Rule 508(a)(3)--NYSE Amex
Equities to the Exchange's MRVP under Rule 476A; (7) incorporate new
Rule 80C--NYSE Amex Equities, which governs trading pauses, into
proposed Rule 515--NYSE Amex Equities; and (8) provide that DMMs do not
need Floor Official approval for trading halts of Nasdaq Securities
under Rule 123D--NYSE Amex Equities.

III. Discussion and Commission's Findings

    After careful consideration, the Commission finds that the proposed
rule change is consistent with the requirements of the Act and the
rules and regulations thereunder applicable to a national securities
exchange.\31\ In particular, the Commission finds that the proposed
rule change is consistent with: (1) Section 6(b)(5) of the Act,\32\ in
that it is designed to promote just and equitable principles of trade,
to remove impediments to and perfect the mechanism of a free and open
market and a national market system and, in general, to protect
investors and the public interest; (2) Section 11A(a)(1) of the
Act,\33\ in that it seeks to ensure the economically efficient
execution of securities transactions and fair competition among brokers
and dealers and among exchange markets; and (3) Section 12(f) of the
Act,\34\ which governs the trading of securities pursuant to UTP
consistent with the maintenance of fair and orderly markets, the
protection of investors and the public interest, and the impact of
extending the existing markets for such securities.
---------------------------------------------------------------------------

    \31\ In approving this proposed rule change, the Commission
notes that it has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
    \32\ 15 U.S.C. 78f(b)(5).
    \33\ 15 U.S.C. 78k-1(a)(1).
    \34\ 15 U.S.C. 78l(f).
---------------------------------------------------------------------------

    Under this proposal, Nasdaq Securities will trade on the Exchange
pursuant to rules governing the trading of Exchange-listed securities
that previously have been approved by the Commission.\35\ NYSE Amex is
making certain minor modifications to the operation of these rules, and
adding certain new rules, to accommodate the trading of Nasdaq
Securities on a UTP basis. The Commission is approving all of these
modifications and additions described in the proposed rule change,
although only certain aspects of the proposal are highlighted in the
following discussion.
---------------------------------------------------------------------------

    \35\ See Securities Exchange Act Releases No. 58705 (October 1,
2008), 73 FR 58995 (October 8, 2008) (SR-Amex-2008-63) and 59022
(November 26, 2008), 73 FR 73683 (December 3, 2008) (SR-NYSEALTR-
2008-10).
---------------------------------------------------------------------------

A. Benefits and Obligations of Market Makers

    In its approval of NYSE's new market model pilot program, the
Commission recognized that the participation of market makers in
exchange markets may benefit public customers by promoting more liquid
and efficient trading, and that an exchange may legitimately confer
benefits on market participants willing to accept substantial
responsibilities to contribute to market quality.\36\ While the rules
of an exchange may confer special or unique benefits to certain types
of participants, they also must ensure, among other things, that
investors and the public interest are protected.\37\ In addition, such
rewards must not be disproportionate to the services provided.\38\
---------------------------------------------------------------------------

    \36\ See Securities Exchange Act Release No. 58845 (October 24,
2008), 73 FR 64379, 64388 (October 29, 2008) (SR-NYSE-2008-46).
    \37\ See 15 U.S.C. 78f(b)(5).
    \38\ See Securities Exchange Act Release No. 58092 (July 3,
2008), 73 FR 40144, 40148 (July 11, 2008) (``Market makers can play
an important role in providing liquidity to the market, and an
exchange can appropriately reward them for that as well as the
services they provide to the exchange's market, so long as the
rewards are not disproportionate to the services provided.'')
(citation omitted).
---------------------------------------------------------------------------

    In considering NYSE Amex's proposal to permit trading of Nasdaq
Securities on a UTP basis based on the new market model trading rules
used by NYSE and NYSE Amex for their listed equity securities, we have
considered whether the rewards granted to DMMs in Nasdaq Securities are
commensurate with their obligations. The proposed obligations and
benefits of DMMs in Nasdaq Securities closely track those applicable to
DMMs in listed equities, which the Commission has approved on a pilot
basis. Proposed Rule 509--NYSE Amex Equities requires a DMM Unit
registered in one or more Nasdaq Securities to comply with all rules
that govern DMM conduct or trading (subject to a few modifications,
discussed below), including Rule 104--NYSE Amex Equities (``Dealings
and Responsibilities of DMMs''), which sets forth the obligations of
DMMs for Exchange-listed securities. Thus, a DMM in Nasdaq Securities
would have an affirmative obligation to engage in a course of

dealings for its own account to assist in the maintenance of a fair and
orderly market insofar as reasonably practicable.\39\ In addition, a
DMM in Nasdaq Securities would be required to facilitate trading
(including supplying liquidity as needed), during re-openings following
a trading halt, when a ``gap'' quote procedure is being used, and when
a manual block trade is being executed.\40\ Similarly, pursuant to
Proposed Rule 509--NYSE Amex Equities, the rules which grant benefits,
such as parity with Floor broker and customer interest \41\ and the
CCS, to DMMs would be applicable to DMMs in Nasdaq Securities.
---------------------------------------------------------------------------

    \39\ See Rule 104(a)--NYSE Amex Equities.
    \40\ See Rule 104(a)(2), (4), and (5)--NYSE Amex Equities.
    \41\ See Rule 72(c)--NYSE Amex Equities.
---------------------------------------------------------------------------

    As discussed above,\42\ the obligations proposed for DMMs in Nasdaq
Securities are slightly different that those that apply to Exchange
DMMs and NYSE DMMs in listed securities. First, in lieu of the tiered
quoting requirement (5% and 10%) currently in place for DMMs in listed
securities, DMMs in Nasdaq Securities would be required to maintain a
bid or offer at the NBB or NBO in each assigned Nasdaq Security an
average of at least 10% of the time during the regular business hours
of the Exchange for each calendar month. As clarified in Amendment No.
3, DMM Units will be required to maintain a continuous two-sided quote
with reasonable size in their registered Nasdaq Securities. Second,
Depth Guidelines and PPPs, which serve as guidelines that identify the
price at or before which a DMM Unit is expected to re-enter the market
after effecting a Conditional Transaction,\43\ similar to those
applicable to listed securities on NYSE Amex,\44\ would apply to DMMs
in Nasdaq Securities, but would not be operative until 18 weeks after
the approval of the proposed rule change by the Commission in order to
give the Exchange time to develop and phase in appropriate guidelines
for Nasdaq Securities. Finally, because the proposed rules do not
provide for opening and closing auctions in Nasdaq Securities, DMMs in
Nasdaq Securities would not be responsible for facilitating openings
and closings, as DMMs in listed equities are.\45\
---------------------------------------------------------------------------

    \42\ See supra notes 18-19 and accompanying text.
    \43\ The term ``Conditional Transaction'' is defined under Rule
104(h)(i) as ``a DMM's transaction in a security that establishes or
increases a position and reaches across the market to trade as the
contra-side to the Exchange published bid or offer.''
    \44\ See Rules 104(f)(ii)--and (iii)--NYSE Amex Equities.
    \45\ However, the Exchange has represented that, if it were to
amend its rules to provide for openings and closing in Nasdaq
Securities, a DMM would be responsible for facilitating openings and
closings in its assigned securities.
---------------------------------------------------------------------------

    After careful consideration, the Commission finds that the proposed
rules relating to DMM benefits and duties in trading Nasdaq Securities
on the Exchange pursuant to UTP are consistent with the Act. We note
that this proposal is very similar to the previously-approved new
market model pilot program currently operated by NYSE and NYSE Amex in
listed securities (particularly with respect to DMM obligations and
benefits).\46\ In addition, like the new market model, this proposal is
subject to a pilot program scheduled to end on September 30, 2010.
Finally, the Commission believes that differences between the proposed
rules for DMMs in Nasdaq Securities and those in effect for listed
securities on NYSE and NYSE Amex are reasonable and consistent with the
Act. While DMMs are not responsible for opening and closing auctions,
the DMM quoting obligation is 10% in all securities, compared to 5% in
more active securities and 10% in less active securities for DMMs in
listed equities. Moreover, we note that the quoting obligation for
Nasdaq Securities would apply to each assigned Nasdaq Security, rather
than to the aggregated average of all the DMM's more-active or all the
DMM's less-active assigned securities, as is the case for DMMs in
listed securities. Finally, the delay in providing depth guidelines and
implementing PPPs will allow the Exchange to obtain trading data for
Nasdaq Securities to determine where the levels should be set, and
appears to be of reasonable duration. In light of the foregoing, the
Commission believes that the proposed rules regarding DMM benefits and
obligations are consistent with the Act.
---------------------------------------------------------------------------

    \46\ See Securities Exchange Act Release No. 58845, supra note
36, at 64387-89.
---------------------------------------------------------------------------

B. Nasdaq Securities Assignments

1. DMMs and SLP Assignments
    The Exchange's Nasdaq Securities Liaison Committee will assign
Nasdaq Securities to DMM Units for trading on the Exchange. No more
than one DMM Unit will be assigned to any Nasdaq Security and a member
organization will not be permitted to be registered as both the DMM
Unit and an SLP for the same Nasdaq Security. Existing NYSE Amex
Equities DMM Units will be automatically eligible for the assignment of
Nasdaq Securities, so long as they qualify in accordance with the
applicable NYSE Amex Equities rules.\47\
---------------------------------------------------------------------------

    \47\ See supra note 7 and accompanying text.
---------------------------------------------------------------------------

    The Nasdaq Securities Liaison Committee will assign one or more
SLPs to Nasdaq Securities for trading on the Exchange. NYSE Amex
Equities members and member organizations may apply to be SLPs in
Nasdaq Securities and will be eligible for the assignment of Nasdaq
Securities in accordance with applicable NYSE Amex Equities Rules.\48\
Like their counterparts in listed equities, SLPs in Nasdaq Securities
will not be required to have a presence on the Trading Floor, and most
will operate remotely. Therefore, the Exchange has concluded that the
limitations in place regarding assignment of ETFs and their component
securities to DMM Units \49\ are unnecessary for SLPs.
---------------------------------------------------------------------------

    \48\ See Notice, supra note 3, 75 FR at 20405.
    \49\ See proposed Rule 504(b)(5)--NYSE Amex Equities.
---------------------------------------------------------------------------

    The Commission finds that this aspect of the proposal is consistent
with the Act. These proposed rules are substantially similar to
existing rules for the assignment of securities to DMMs and SLPs in
listed equities on NYSE and NYSE Amex that we have previously
approved.\50\
---------------------------------------------------------------------------

    \50\ See, e.g., Securities Exchange Act Releases No. 58845
(October 24, 2008), 73 FR 64379 (October 29, 2008) (SR-NYSE-2008-
46); and 58877 (October 29, 2008), 73 FR 65904 (November 6, 2008)
(SR-NYSE-2008-108).
---------------------------------------------------------------------------

2. QQQ and Component Securities
    As part of this proposed rule change, NYSE Amex proposes
requirements governing the assignment of the QQQs and its component
securities.\51\ Under proposed Rule 504--NYSE Amex Equities, a DMM Unit
may be registered in both the QQQs and a component security or
securities provided that, at the time of assignment, no single
component in which the DMM Unit is registered exceeds 10% of the index
or portfolio underlying the QQQs, and all components in which the DMM
Unit is registered do not in the aggregate exceed 20% of the index or
portfolio underlying the QQQs.\52\ The Exchange will review its rules
governing the allocation of the QQQs and component securities in the
event that its market share of the Nasdaq Securities that it trades
exceeds 10% of the consolidated Tape C aggregate average daily trading
volume for these securities. In addition,

the Exchange will also require the DMM Unit to have policies and
procedures to detect and deter violations of the Act including
manipulation, front-running, and wash sales.\53\
---------------------------------------------------------------------------

    \51\ See Notice, supra note 3, 75 FR at 20403-05.
    \52\ Proposed Rule 504--NYSE Amex Equities also requires the DMM
Unit registered in the QQQs to calculate, monitor, and report these
components and percentages on a monthly basis. If these levels are
exceeded, the DMM Unit will be required to report this to the
Exchange as soon as possible. The Exchange also represented that it
will calculate and monitor these levels and report them to the
Nasdaq Liaison Committee. See Notice, supra note 3, 75 FR at 20403.
    \53\ With respect to the potential for wash sales, the Exchange
has represented that virtually all DMM interest is entered through
its algorithmic trading system (``SAPI''), and that the SAPI
prevents trading interest of the DMM Unit from executing against its
own quotes or its other trading interest on the Exchange. While a
DMM Unit could enter a proprietary order in one of its assigned
securities through a system other than the SAPI, DMM Units are
required to have policies and procedures in place that are
reasonably designed to prevent violations of Exchange rules and the
federal securities laws, including the prohibition on wash sales
pursuant to Section 9 of the Act, 15 U.S.C. 78i.
---------------------------------------------------------------------------

    The Commission finds that the proposal relating to the assignment
of QQQs and its component securities is consistent with Section 6(b)(5)
of the Act.\54\ The Commission notes that the current proposal applies
to only one ETF, the QQQs, which the Exchange has represented meets the
composition and concentration measures to be classified as a broad-
based ETF.\55\ The Commission believes that, when the securities
underlying an ETF consist of a number of liquid and well-capitalized
stocks, the likelihood that a market participant will be able to
manipulate the price of the ETF is reduced. In addition, the Commission
notes that the Exchange will require the DMM Unit in the QQQs to
implement policies and procedures to detect and deter inappropriate
access to information about pending block trades from other business
units of the DMM in the component securities, potential front-running,
manipulation, intentional wash sales, and of other violations of
Section 9 of the Act.\56\ The Commission also notes that the DMM will
be required to conduct surveillance to detect patterns of trading that
are indicative of these violations.
---------------------------------------------------------------------------

    \54\ 15 U.S.C. 78f(b)(5).
    \55\ The Commission has previously approved side-by-side trading
and integrated market-making for broad-based ETFs and related
options, in part because the individual components of broad-based
ETFs are sufficiently liquid and well-capitalized, and the
composition of the ETF as a whole does not focus on one security or
group of securities. See Securities Exchange Act Release No. 46213
(July 16, 2002), 67 FR 48232 (July 23, 2002) (SR-Amex-2002-21).
    \56\ Such policies and procedures will have to meet the
requirements of Rule 98-NYSE Amex Equities. See Notice, supra note
3, 75 FR at 20405 n.16.
---------------------------------------------------------------------------

C. Trading Posts for Nasdaq Securities

    The Exchange proposes to amend Rule 103B--NYSE Amex Equities to
permit Exchange-listed securities and Nasdaq Securities to trade on
posts throughout the Trading Floor. Under the proposed rule, a DMM Unit
that is registered to trade NYSE and NYSE Amex-listed securities, as
well as Nasdaq Securities, could trade all these securities at the same
post. However, NYSE Amex-listed and/or traded securities, such as
Nasdaq Securities, would be assigned to specific panels. The DMM Unit
would be required to commit staff to trade NYSE-listed securities that
are separate from the staff committed to trade NYSE Amex-listed or
traded securities at any time during the trading day. The Commission
believes that these arrangements are reasonable and consistent with the
Act.

D. Limits on Proprietary Trading By Members Holding Unexecuted Orders
in Nasdaq Securities

    Proposed Rules 513-- and 514--NYSE Amex Equities provide that a
member firm handling an unexecuted customer order in a Nasdaq Security
may not execute a proprietary trade for that security at a price that
would satisfy the customer's order, without executing the customer's
order at that price. The Commission believes that these proposed rules
appear reasonably designed to protect customer orders, and thus should
benefit investors and the public interest. These rules are
substantially similar to existing FINRA rules and interpretations that
prohibit trading ahead of customer orders,\57\ and thus are consistent
with the Act.
---------------------------------------------------------------------------

    \57\ See FINRA/NASD Interpretive Material (IM) 2110-2 (Trading
Ahead of Customer Limit Order) and FINRA/NASD Rule 2111 (Trading
Ahead of Customer Market Orders).
---------------------------------------------------------------------------

E. Reporting and Recordkeeping

    The Commission finds that the proposed audit trail requirements are
consistent with the Act. Generally, the proposed rules subject members
and member organizations trading Nasdaq Securities on the Exchange to
the Exchange's audit trail requirements.
    Most of the Exchange's members and member organizations also are
FINRA members. FINRA requires all trades in Nasdaq-listed securities by
its members, regardless of the market, to be reported to OATS. Some
members and member organizations may wish to enter and/or execute
orders in Nasdaq Securities on both the Exchange and other markets,
which would require them to comply with the Exchange's audit trail
requirements and OATS. Additionally, because Nasdaq-listed securities
have not previously traded on the Exchange, some members and member
organizations, particularly Floor brokers that have previously only
conducted transactions in Exchange-listed securities, do not have OATS-
compliant systems and procedures.
    Proposed Rule 516--NYSE Amex Equities eliminates duplicative
reporting by exempting from the Exchange's audit trail provisions a
member or member organization that is a FINRA member subject to OATS
reporting. This exception is designed to spare members and member
organizations that wish to trade Nasdaq Securities on multiple markets
(including the Exchange) the unnecessary expense and/or delay
associated with converting to OATS-compliant systems.\58\
Notwithstanding that exception, a Floor broker that receives an order
in a Nasdaq Security from another member must comply with the
Exchange's audit trail requirements, regardless of FINRA membership
status and the applicability of an OATS reporting obligation. The
Exchange has represented that it will have full access to a complete
audit trail and there will be no gap in regulatory oversight.\59\
---------------------------------------------------------------------------

    \58\ The Exchange states that, although OATS contains
substantially the same order information as the Exchange's
electronic order tracking system (``OTS'') and the Exchange's Front-
End System Capture (``FESC''), OATS data are in a different format
from the data recorded by OTS and FESC, and the systems are not
directly compatible. See Notice, supra note 3, 75 FR at 20410-11.
    \59\ See Notice, supra note 3, 75 FR at 20411.
---------------------------------------------------------------------------

F. Trading of New Derivative Securities Products

    The Exchange's proposed rules governing the trading of new
derivative securities products pursuant to Rule 19b-4(e) under the Act
\60\ are based on similar rules adopted by other national securities
exchanges.\61\ The Commission believes that proposed Rule 510(d)--NYSE
Amex Equities is reasonably designed to prevent trading in new
derivative securities products when transparency is impaired. In
addition, proposed Rule 510(e)--NYSE Amex Equities requires that the
Exchange enter into a comprehensive surveillance sharing agreement
(``CSSA'') with markets trading components of the index or portfolio on
which the new derivative securities product is based to the same extent
as the listing exchange's rules require the listing market to enter
into a CSSA with such markets. This provision should assist the
Exchange in fulfilling its regulatory obligations under Section
19(g)(1) of the Act.\62\
---------------------------------------------------------------------------

    \60\ 17 CFR 240.19b-4(e).
    \61\ See, e.g., Securities Exchange Act Release No. 57448 (March
6, 2008), 73 FR 13597 (March 13, 2008) (SR-NSX-2008-05) (order
approving NSX Rule 15.9); Securities Exchange Act Release No. 59663
(March 31, 2009), 74 FR 15552 (April 6, 2009) (SR-Nasdaq-2009-018)
(notice of filing and immediate effectiveness for Nasdaq Rule 5740).
    \62\ 15 U.S.C. 78s(g)(1).

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

G. Additions to the MRVP

    The Commission further finds that the proposal is consistent with
Sections 6(b)(1) and 6(b)(6) of the Act,\63\ which require that the
rules of an exchange enforce compliance with, and provide appropriate
discipline for, violations of Commission and Exchange rules. These
proposed changes to the MRVP should strengthen the Exchange's ability
to carry out its oversight and enforcement responsibilities as a self-
regulatory organization in cases where full disciplinary proceedings
are unsuitable in view of the minor nature of the particular violation.
Therefore, the Commission finds that the proposal is consistent with
the public interest, the protection of investors, or otherwise in
furtherance of the purposes of the Act, as required by Rule 19d-1(c)(2)
under the Act,\64\ which governs minor rule violation plans.
---------------------------------------------------------------------------

    \63\ 15 U.S.C. 78f(b)(1) and 78f(b)(6).
    \64\ 17 CFR 240.19d-1(c)(2).
---------------------------------------------------------------------------

    In approving this proposed rule change, the Commission in no way
minimizes the importance of compliance with Exchange rules and all
other rules subject to the imposition of fines under the MRVP. The
Commission believes that the violation of any self-regulatory
organization's rules, as well as Commission rules, is a serious matter.
However, the MRVP provides a reasonable means of addressing rule
violations that do not rise to the level of requiring formal
disciplinary proceedings, while providing greater flexibility in
handling certain violations. The Commission expects that the Exchange
will continue to conduct surveillance with due diligence and make a
determination based on its findings, on a case-by-case basis, whether a
fine of more or less than the recommended amount is appropriate for a
violation under the MRVP or whether a violation requires formal
disciplinary action under NYSE Amex Rule 476.

H. Accelerated Approval

    Amendment No. 2 did not materially alter the proposal, which had
already undergone a full notice period, during which no comments were
received. In Amendment No. 2, the Exchange revised the proposal to
remove two rules from the Exchange's MRVP, and provided clarification
on FINRA's guidance regarding the OATS recording and recordkeeping
obligations for NYSE Amex Floor brokers. In Amendment No. 3, the
Exchange revised the proposal to provide that LRPs would not be used
for trading in Nasdaq Securities, and made certain minor changes to the
proposal that do not raise material issues. The Commission finds that
good cause exists, consistent with Section 19(b) of the Act,\65\ for
approving the proposed rule change, as modified by Amendment Nos. 1, 2,
and 3 prior to the thirtieth day after publication of notice of filing
of Amendment Nos. 2 and No. 3 in the Federal Register.
---------------------------------------------------------------------------

    \65\ 15 U.S.C. 78s(b).
---------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and
arguments concerning Amendment Nos. 2 and No. 3, including whether
those amendments are consistent with the Act. Comments may be submitted
by any of the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to<EMAIL_ADDRESS>Please include
File Number SR-NYSEAmex-2010-31 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NYSEAmex-2010-31. This
file number should be included on the subject line if e-mail is used.
To help the Commission process and review your comments more
efficiently, please use only one method. The Commission will post all
comments on the Commission's Internet Web site (http://www.sec.gov/
rules/sro.shtml). Copies of the submission, all subsequent amendments,
all written statements with respect to the proposed rule change that
are filed with the Commission, and all written communications relating
to the proposed rule change between the Commission and any person,
other than those that may be withheld from the public in accordance
with the provisions of 5 U.S.C. 552, will be available for 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 a.m. and 3 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-
NYSEAmex-2010-31 and should be submitted on or before August 5, 2010.

V. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the Act
\66\ and Rule 19d-1(c)(2) under the Act,\67\ that the proposed rule
change, as modified by Amendment Nos. 1, 2 and 3 thereto (SR-NYSEAmex-
2010-31), be, and it hereby is, approved and declared effective.
---------------------------------------------------------------------------

    \66\ 15 U.S.C. 78s(b)(2).
    \67\ 17 CFR 240.19d-1(c)(2).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\68\
---------------------------------------------------------------------------

    \68\ 17 CFR 200.30-3(a)(12) and 200.30-3(a)(44).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-17274 Filed 7-14-10; 8:45 am]
BILLING CODE 8010-01-P


Compliance Plans for MSW Landfills Within the State of New Jersey Subject to Subpart OOO

PI No.
 Facility
Permit Actions (as reported on DEP DataMiner)
Control Device (CD) Retrofits Done
Retrofit after 6/21/21
Shutdown/
Anticipated Closure Year*
73258
Cape May County MUA Secure Landfill
Initial Operating Permit (OP) Approved [BOP010001] 9/14/2005

OP Amendment Approved [BOP150001] 12/16/2019  -  Renewal underway

OP Renewal [BOP180002]  -  Pending/Stopped Due to Technical Deficiency 1/25/2019

OP Modification Approval [BOP180001]  -  Pending/Stopped Due to Technical Deficiency 4/03/2018

No Subpart OOO citations. Existing permit language incorporates Subpart WWW requirements.
-----------------------------
Stack test TST200001 (Engines) pending
Stack test TST180001 (Engines) April 2019

Emissions Statement:
U9 Landfill/Flares                 0.52 ton VOC in 2020
U8 Three Engines on LFG    0.20 ton VOC in 2020
CD101
Installed 9/1/96
Replaced Flare

CD102
Candlestick Flare
Installed 3/1/10
emergency use 5/1/10

As reported by Russell Smith (April 2022), project engineer, an initial performance test on the new flare will be conducted within 180 days of startup to demonstrate NMOC destruction efficiency in accordance with 40 CFR 62.16714(c)2.
New Replacement for CD101

CD103 Enclosed Flare - Installation pending with permit approval

2094
17901
Cinnamon Bay LLC & Edgeboro Landfill Disposal, Inc.
Initial OP Approved [BOP990001] 7/10/2002

OP Modification Approved [BOP170001] 12/19/2020  -  Renewal underway

OP Renewal [BOP210001]  -  Pending/Backlogged 1/06/2021

OP Renewal [BOP150001]  -  Pending/Backlogged 12/22/2015

No Subpart OOO citations. Existing permit language incorporates Subpart WWW requirements.
-----------------------------
Emissions Statement: 22.4 tons VOC in 2020
CD7, CD8
Enclosed Flares

CD9, CD10
Enclosed Flares

6 Engines

As reported by James Aversano, attorney (April 2022), "no new control devices are necessary" to demonstrate compliance with federal regulations  -  annual NMOC emissions are less than 34 metric tons per year.
None.

Landfill stopped operating in 1999
55923
Gloucester CNTY Solid Waste Complex
Initial OP Approved [BOP020001] 9/26/2006

OP Renewal Approved [BOP140001] 9/06/2020

OP Renewal [BOP190002] 7/30/2019  -  Pending/Stopped Due to Technical Deficiency 8/21/2019

OP Modification [BOP190001] 7/02/2019  -  Pending/Stopped Due to Technical Deficiency 12/12/2019

No Subpart OOO citations. Existing language incorporates Subpart WWW requirements.

Notified (3/2022) that the facility has submitted a report to the EPA noting all applicable Subpart OOO requirements.
-----------------------------
Emissions Statement: 8.38 tons VOC in 2020

Stack test TST090001  5/09/2011 (BOP090001)
CD1
Enclosed Flare
Installed 4/1/94

CD2 Enclosed Flare

As reported by Julie Bethke, SCS Engineers (April 2022), performance tests have been conducted on both flares to demonstrate compliance with federal regulations.
None.
2050
13317
Keegan SLF
Initial OP [BOP200001] 11/22/2021  -  Pending/Stopped Due to Technical Deficiency 12/20/2021

Construction of New Source [PCP190001]  -  Pending/Backlogged 8/25/2020

Administrative Compliance Order (AOC)
EPA Region 2 found that Keegan SLF was in violation of Subpart WWW requirements and issued an AOC in February 2020. The Order required the landfill to take actions to come into compliance. Assumption made (based on permit activities) that the landfill is taking steps towards achieving compliance with all terms of the Order.
-----------------------------
Emissions Statement: None.
Modifications - vertical expansion of the landfill, with a design capacity increase [Solid Waste Facility modification permits LOP070001 and CTO LOP150001/160001]
2009, 2016

LFG Collection and Control System Installed 6/28/19 (under an EIPT)
Permanent Enclosed Flare  -  Installed in 2020, pending operations with permit approval

2022

42247
Linden City SLF
Initial OP Approved [BOP070001] 10/12/2010

OP Renewal Approved [BOP140001] 8/19/2019

OP Renewal [BOP180001] 5/21/2018  -  Pending/Stopped Due to Technical Deficiency 10/04/2018

No Subpart OOO citations. Existing permit language incorporates Subpart WWW requirements.
-----------------------------
Landfill with vents and CD

Emissions Statement: 0.57 tons VOC in 2020
CD1
Enclosed Flare
Installed 6/1/09

As report by Behram Turan, principal  -  director of environmental services (April 2022), no additional CDs are expected to be added to control NMOC emissions  -  annual NMOC emissions are less than 34 metric tons per year.

None.
Landfill stopped operating in 1988
21351
Monmouth County Reclamation Center (MCRC)
Initial OP Approved [BOP020001] 1/21/2005

OP Modification Approved [BOP200001] 7/29/2021  -  Renewal underway

OP Renewal [BOP180001]  -  Pending/Backlogged 7/28/2021

No Subpart OOO citations. Existing permit language incorporates Subpart WWW requirements.

Developing a Pre-draft
As reported by Tiffany Medley, client manager, MCRC is currently complying with Subpart OOO requirements; however, they have a pre-draft approval for a Solid Waste permit revision that will increase capacity for the future  -  making them subject to XXX once that portion of landfill is built. Landfilling continues in the existed permitted space and the County has planned an expansion (Phase IV) that will allow for landfilling to continue operations estimated through 2050. The facility is presently working with NJDEP on the Title V renewal.
-----------------------------
Three separate Phases of landfill plus LFG to energy 9.81 MMBtu/hr engine E23. Emission Statement: 0.59 tons VOC Stack, 14.74 tons VOC Non-source Fugitive in 2020
CD1 Enclosed Flare
Installed 7/2/1990

CD3 Enclosed Flare
Installed 6/1/2003

CD101 Enclosed Flare
Installed 6/1/2003

As confirmed by Tiffany L. Medley, client manager (April 2022), MCRC is currently complying with all subpart OOO regulations.
None.
2050
46588
Parklands Recycling & Disposal Facility
Initial OP Approved [BOP02001] 5/04/2004

OP Canceled [BOP13001] 9/07/2016

Initial Certificate to Operate (CO) [PCP160001] 9/07/2016

CO Renewed [PCP160001] 9/01/2021

No Subpart OOO citations, just general language incorporating requirements from major Parts.

"This permit allows for inspection and evaluation of the equipment by the Department to assure conformance with all provisions of N.J.A.C. 7:27 et seq. and any other applicable federal requirements codified at 40 CFR 52, 60, 61 and 63."
-----------------------------
PCP160001
Landfill
0.57 tpy VOC

Emission Statement: None. < 10 tpy VOC

Stack test TST110001  12/01/2011 [PI 46099]
CD101
Enclosed Flare
Installed 7/1/11

CD102
Candlestick Flare
Installed 6/1/03

As noted by Haley Burke, landfill supervisor (April 2022), no new control devices are necessary to demonstrate compliance with federal regulations  -  annual NMOC emissions are less than 34 metric tons per year.
None.

Landfill stopped operating in 1989
70217
Pinelands Park
Initial General Permit Approved [GEN170001] 11/6/2017

Compliance Change Permit [PCP110001] Renewed 7/26/2021

No Subpart OOO citations, just general language incorporating requirements from major Parts.

"This permit allows for inspection and evaluation of the equipment by the Department to assure conformance with all provisions of N.J.A.C. 7:27 et seq. and any other applicable federal requirements codified at 40 CFR 52, 60, 61 and 63."
-----------------------------
PCP110001
Flare  -  Replacement flare

After Controls: 7.18 tpy VOC

Emission Statement: None. < 10 tpy VOC PTE
E401/CD2
Replacement Flare
Installed 10/1/2009

As reported by Gary Conover, ACUA solid waste director (April 2022) the enclosed flare, listed, is the only CD onsite. The landfill will continue to maintain and monitor this enclosed flare, as long as it necessary and required at the site.
None.

Landfill stopped operating in 1990.

In 2021, NJDEP granted an extension to post-closure care, an additional 10 years, beyond the initial 30-year period.
* Subject to change.
Note: For the purpose of this table, it is conservatively assumed that VOC emission rates reported are 100% representative of NMOCs.

PI = Program Interest
VOC = Volatile Organic Compounds
PTE = Potential to emit
LFG = Landfill gas


[Federal Register: November 24, 2008 (Volume 73, Number 227)]
[Notices]
[Page 71006-71007]
[DOCID:fr24no08-108]

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

DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

[Docket No. FDA-2008-N-0589]

Agency Information Collection Activities; Proposed Collection;
Comment Request; Mental Models Study of Health Care Providers'
Understanding of Prescription Drug Effectiveness

AGENCY: Food and Drug Administration, HHS.

ACTION: Notice.

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

SUMMARY: The Food and Drug Administration (FDA) is announcing an
opportunity for public comment on the proposed collection of certain
information by the agency. Under the Paperwork Reduction Act of 1995
(the PRA), Federal agencies are required to publish notice in the
Federal Register concerning each proposed collection of information and
to allow 60 days for public comment in response to the notice. This
notice solicits comments on the information collection provisions of
the Mental Models Study of Health Care Providers' Understanding of
Prescription Drug Effectiveness. Together with other information being
collected, the results from this study will be used to help inform FDA
about how health care providers conceptualize the drug effectiveness
portion of the risk/benefit tradeoff and how that conceptualization
differs from how agency experts think about drug effectiveness. The
information gathered in this study will be used to focus and strengthen
future planned quantitative research. It will also contribute to FDA's
ability to communicate drug effectiveness information to health care
providers in labeling and other communications.

DATES: Submit written or electronic comments on the collection of
information by January 23, 2009.

ADDRESSES: Submit electronic comments on the collection of information
to http://www.regulations.gov. Submit written comments on the
collection of information to the Division of Dockets Management (HFA-
305), Food and Drug Administration, 5630 Fishers Lane, rm. 1061,
Rockville, MD 20852. All comments should be identified with the docket
number found in brackets in the heading of this document.

FOR FURTHER INFORMATION CONTACT: Elizabeth Berbakos, Office of
Information Management (HFA-710), Food and Drug Administration, 5600
Fishers Lane, Rockville, MD 20857,<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: Under the PRA (44 U.S.C. 3501-3520), Federal
agencies must obtain approval from the Office of Management and Budget
(OMB) for each collection of information they conduct or sponsor.
``Collection of information'' is defined in 44 U.S.C. 3502(3) and 5 CFR
1320.3(c) and includes agency requests or requirements that members of
the public submit reports, keep records, or provide information to a
third party. Section 3506(c)(2)(A) of the PRA (44 U.S.C. 3506(c)(2)(A))
requires Federal agencies to provide a 60-day notice in the Federal
Register concerning each proposed collection of information before
submitting the collection to OMB for approval. To comply with this
requirement, FDA is publishing notice of the proposed collection of
information set forth in this document.
    With respect to the following collection of information, FDA
invites comments on these topics: (1) Whether the proposed collection
of information is necessary for the proper performance of FDA's
functions, including whether the information will have practical
utility; (2) the accuracy of FDA's estimate of the burden of the
proposed collection of information, including the validity of the
methodology and assumptions used; (3) ways to enhance the quality,
utility, and clarity of the information to be collected; and (4) ways
to minimize the burden of the collection of information on respondents,
including through the use of automated collection techniques, when
appropriate, and other forms of information technology.

Mental Models Study of Health Care Providers' Understanding of
Prescription Drug Effectiveness

    Section 1701(a)(4) of the Public Health Service Act (42 U.S.C.
300u(a)(4)) authorizes FDA to conduct research relating to health
information.

Section 903(b)(2)(c) of the Federal Food, Drug, and Cosmetic Act (the
act) (21 U.S.C. 393(b)(2)(c)) authorizes FDA to conduct research
relating to drugs and other FDA regulated products in carrying out the
provisions of the act.
    FDA regulations require that an advertisement that makes claims
about a prescription drug include a ``air balance'' of information
about the benefits and risks of the advertised product, in terms of
both content and presentation (21 CFR 202.1(e)(5)(ii)). In past
research, FDA has focused primarily on the risk component of the risk/
benefit ratio. In the interest of thoroughly exploring the issue of
fair balance, however, the presentation of effectiveness, or benefit,
information is equally important. This component has received less
scrutiny. The proposed information collection described here is the
first step in a three-phase study designed to investigate the role of
effectiveness information in prescription drug print advertising. Along
the way, we plan to investigate how health care providers use labeling
and other materials and experiences to reach conclusions about drug
effectiveness. We will use this information to provide a benchmark with
which to compare the information consumers receive from direct-to-
consumer advertisements.
    The information collection described here refers only to the
qualitative portion of the study series, Phase I. The purpose of the
proposed information collection is twofold. First, we plan to gather
information in this phase that will help us to determine the proper
concepts about which to inquire and the proper language to use when
asking health care providers in the second phase about the
effectiveness of certain drug products. Second, we will use the
information gathered in this phase to identify gaps in the
communication of effectiveness information in FDA sponsored materials,
such as the physician labeling.
    The proposed information collection described here (Phase I of a
multi-phase project) will use ``mental modeling,'' a qualitative
research method that compares a model of the decisionmaking processes
of a group or groups to a model of the same decisionmaking processes
developed from expert knowledge and experience. In this study, the
decision models of certain health care providers concerning
effectiveness decisions of various treatment options for individuals
suffering from insomnia or rheumatoid arthritis will be compared to a
decision model concerning drug effectiveness that was derived from the
knowledge and experience of FDA reviewers responsible for product
labeling, National Institutes of Health clinical experts in this field,
and others involved in the training of medical professionals. FDA will
use telephone interviews to determine from the health care providers
the factors that shape their understanding and decisions about the
effectiveness of various drug treatments for their patients. A
comparison between expert and health care provider models based on the
collected information may identify consequential knowledge gaps that
can be redressed through messages designed by FDA and will provide
information for designing the second (quantitative) phase of research
with a national sample of health care providers.
    Using a protocol derived from the research that resulted in the
expert model, trained interviewers will conduct one-on-one telephone
discussions with about 20 members of 2 categories of health care
providers, general practitioners and rheumatologists, who provide
direct patient care at least 50 percent of the time.
    FDA has selected these two groups of physicians because the first
group is reasonably likely to treat insomnia, whereas the second group
treats rheumatoid arthritis. We selected these two medical conditions
for focus in the next two phases of the research because prescription
drug treatments for both are heavily advertised to consumers, drugs for
these conditions are variable in their risk/benefit profiles, and yet
they are each fairly complex in terms of risk/benefit profiles. Another
function of the current information collection is to determine the
feasibility of using these two medical conditions in the following
quantitative phases.
    FDA estimates the burden of this collection of information as
follows:

                                 Table 1.--Estimated Annual Reporting Burden\1\
----------------------------------------------------------------------------------------------------------------
                                 Annual Frequency                               Hours Per
      No. of  Respondents          per Response    Total Annual  Responses       Response         Total Hours
----------------------------------------------------------------------------------------------------------------
40                                              1                        1               0.75               30.0
----------------------------------------------------------------------------------------------------------------
Total                           .................  .......................  .................               30.0
----------------------------------------------------------------------------------------------------------------
\1\ There are no capital costs or operating and maintenance costs associated with this collection of
  information.

    The study will involve about 40 respondents and take approximately
45 minutes each to complete. These estimates are based on the
contractor's extensive experience with mental models research.
    Please note that on January 15, 2008, the FDA Division of Dockets
Management Web site transitioned to the Federal Dockets Management
System (FDMS). FDMS is a Government-wide, electronic docket management
system. Electronic comments or submissions will be accepted by FDA only
through FDMS at http://www.regulations.gov.

    Dated: November 17, 2008.
Jeffrey Shuren,
Associate Commissioner for Policy and Planning.
[FR Doc. E8-27801 Filed 11-21-08; 8:45 am]

BILLING CODE 4160-01-S


[Federal Register Volume 82, Number 127 (Wednesday, July 5, 2017)]
[Notices]
[Page 31052]
[FR Doc No: 2017-14082]

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

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

Combined Notice of Filings

    Take notice that the Commission has received the following Natural
Gas Pipeline Rate and Refund Report filings:

Filings Instituting Proceedings

    Docket Numbers: RP17-848-000.
    Applicants: Midcontinent Express Pipeline LLC.
    Description: Midcontinent Express Pipeline LLC submits tariff
filing per 154.204: Housekeeping Filing June 2017 to be effective 8/1/
2017.
    Filed Date: 06/28/2017.
    Accession Number: 20170628-5039.
    Comment Date: 5:00 p.m. Eastern Time on Monday, July 10, 2017.

    Docket Numbers: RP17-849-000.
    Applicants: Texas Eastern Transmission, LP.
    Description: Texas Eastern Transmission, LP submits tariff filing
per 154.204: Negotiated Rate--Chevron to ConocoPhillips--contract
8946463 to be effective 7/1/2017.
    Filed Date: 06/28/2017.
    Accession Number: 20170628-5071.
    Comment Date: 5:00 p.m. Eastern Time on Monday, July 10, 2017.

    Docket Numbers: RP17-850-000.
    Applicants: Transcontinental Gas Pipe Line Company.
    Description: Transcontinental Gas Pipe Line Company, LLC submits
tariff filing per 154.204: Negotiated Rates--Cherokee AGL--Replacement
Shippers--Jul 2017 to be effective 7/1/2017.
    Filed Date: 06/28/2017.
    Accession Number: 20170628-5078.
    Comment Date: 5:00 p.m. Eastern Time on Monday, July 10, 2017.

    Docket Numbers: RP17-851-000.
    Applicants: Gulf South Pipeline Company, LP.
    Description: Gulf South Pipeline Company, LP submits tariff filing
per 154.204: Request for Service Waiver to be effective 8/1/2017.
    Filed Date: 06/28/2017.
    Accession Number: 20170628-5123.
    Comment Date: 5:00 p.m. Eastern Time on Monday, July 10, 2017.

    Docket Numbers: RP17-852-000.
    Applicants: El Paso Natural Gas Company, L.L.C.
    Description: El Paso Natural Gas Company, L.L.C. submits tariff
filing per 154.601: Non-Conforming OPASA Update (APS) to be effective
8/1/2017.
    Filed Date: 06/28/2017.
    Accession Number: 20170628-5130.
    Comment Date: 5:00 p.m. Eastern Time on Monday, July 10, 2017.

    Docket Numbers: RP17-853-000.
    Applicants: Big Sandy Pipeline, LLC.
    Description: Big Sandy Pipeline, LLC submits tariff filing per
154.403: Big Sandy EPC 2017 to be effective 8/1/2017.
    Filed Date: 06/28/2017.
    Accession Number: 20170628-5141.
    Comment Date: 5:00 p.m. Eastern Time on Monday, July 10, 2017.

    Docket Numbers: RP17-854-000.
    Applicants: Sabine Pipe Line LLC.
    Description: Sabine Pipe Line LLC submits tariff filing per
154.204: Sabine Address Update Tariff Filing to be effective 6/28/2017.
    Filed Date: 06/28/2017.
    Accession Number: 20170628-5167.
    Comment Date: 5:00 p.m. Eastern Time on Monday, July 10, 2017.

    Docket Numbers: RP17-855-000.
    Applicants: Chandeleur Pipe Line, LLC.
    Description: Chandeleur Pipe Line, LLC submits tariff filing per
154.204: Chandeleur Address Update Tariff Filing to be effective 6/28/
2017.
    Filed Date: 06/28/2017.
    Accession Number: 20170628-5171.
    Comment Date: 5:00 p.m. Eastern Time on Monday, July 10, 2017.

    Docket Numbers: RP17-856-000.
    Applicants: El Paso Natural Gas Company, L.L.C.
    Description: El Paso Natural Gas Company, L.L.C. submits tariff
filing per 154.601: Negotiated Rate Agreement Update (APS July 2017) to
be effective 7/1/2017.
    Filed Date: 06/28/2017.
    Accession Number: 20170628-5193.
    Comment Date: 5:00 p.m. Eastern Time on Monday, July 10, 2017.

    Docket Numbers: RP17-857-000.
    Applicants: ConocoPhillips Company.
    Description: Joint Petition of ConocoPhillips Company, et al. for
Limited Waiver and Request for Expedited Action under RP17-857.
    Filed Date: 06/28/2017.
    Accession Number: 20170628-5197.
    Comment Date: 5:00 p.m. Eastern Time on Friday, July 07, 2017.

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

    Dated: June 29, 2017.
Nathaniel J. Davis, Sr.,
 Deputy Secretary.
[FR Doc. 2017-14082 Filed 7-3-17; 8:45 am]
 BILLING CODE 6717-01-P