[Federal Register Volume 81, Number 91 (Wednesday, May 11, 2016)]
[Notices]
[Pages 29271-29273]
[FR Doc No: 2016-11083]

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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

[Docket No. FDA-2013-N-0730]

Agency Information Collection Activities; Proposed Collection;
Comment Request; Threshold of Regulation for Substances Used in Food-
Contact Articles

AGENCY: Food and Drug Administration, HHS.

ACTION: Notice.

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SUMMARY: The Food and Drug Administration (FDA or we) 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, including each proposed extension
of an existing collection of information, and to allow 60 days for
public comment in response to the notice. This notice solicits comments
on requests for data needed to evaluate requests for Threshold of
Regulation Exemptions for Substances Used in Food-Contact Articles.

DATES: Submit either electronic or written comments on the collection
of information by July 11, 2016.

ADDRESSES: You may submit comments as follows:

Electronic Submissions

    Submit electronic comments in the following way:
     Federal eRulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments. Comments submitted
electronically, including attachments, to http://www.regulations.gov
will be posted to the docket unchanged. Because your comment will be
made public, you are solely responsible for ensuring that your comment
does not include any confidential information that you or a third party
may not wish to be posted, such as medical information, your or anyone
else's Social Security number, or confidential business information,
such as a manufacturing process. Please note that if you include your
name, contact information, or other information that identifies you in
the body of your comments, that information will be posted on http://www.regulations.gov.
     If you want to submit a comment with confidential
information that you do not wish to be made available to the public,
submit the comment as a written/paper submission and in the manner
detailed (see ``Written/Paper Submissions'' and ``Instructions'').

Written/Paper Submissions

    Submit written/paper submissions as follows:
     Mail/Hand delivery/Courier (for written/paper
submissions): Division of Dockets Management (HFA-305), Food and Drug
Administration, 5630 Fishers Lane, Rm. 1061, Rockville, MD 20852.
     For written/paper comments submitted to the Division of
Dockets Management, FDA will post your comment, as well as any
attachments, except for information submitted, marked and identified,
as confidential, if submitted as detailed in ``Instructions.''
    Instructions: All submissions received must include the Docket No.
FDA-2013-N-0730 for ``Agency Information Collection Activities;
Proposed Collection; Comment Request; Threshold of Regulation for
Substances Used in Food-Contact Articles.'' Received comments will be
placed in the docket and, except for those submitted as ``Confidential
Submissions,'' publicly viewable at http://www.regulations.gov or at
the Division of Dockets Management between 9 a.m. and 4 p.m., Monday
through Friday.
     Confidential Submissions--To submit a comment with
confidential information that you do not wish to be made publicly
available, submit your comments only as a written/paper submission. You
should submit two copies total. One copy will include the information
you claim to be confidential with a heading or cover note that states
``THIS DOCUMENT CONTAINS CONFIDENTIAL INFORMATION.'' The Agency will
review this copy, including the claimed confidential information, in
its consideration of comments. The second copy, which will have the
claimed confidential information redacted/blacked out, will be
available for public viewing and posted on http://www.regulations.gov.
Submit both copies to the Division of Dockets Management. If you do not
wish your name and contact information to be made publicly available,
you can provide this information on the cover sheet and not in the body
of your comments and you must identify this information as
``confidential.'' Any information marked as ``confidential'' will not
be disclosed except in accordance with 21 CFR 10.20 and other
applicable disclosure law. For more information about FDA's posting of
comments to public dockets, see 80 FR 56469, September 18, 2015, or
access the information at: http://www.fda.gov/regulatoryinformation/dockets/default.htm.
    Docket: For access to the docket to read background documents or
the electronic and written/paper comments received, go to http://www.regulations.gov and insert the docket number, found in brackets in
the heading of this document, into the ``Search'' box and follow the
prompts and/or go to the Division of Dockets Management, 5630 Fishers
Lane, rm. 1061, Rockville, MD 20852.

FOR FURTHER INFORMATION CONTACT: FDA PRA Staff, Office of Operations,
Food and Drug Administration, 8455 Colesville Rd., COLE-14526, Silver
Spring, MD 20993-0002<EMAIL_ADDRESS>
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, including
each proposed extension of an existing 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.
Threshold of Regulation for Substances Used in Food-Contact Articles--
21 CFR 170.39 (OMB Control Number 0910-0298)--Extension
    Under section 409(a) of the Federal Food, Drug, and Cosmetic Act
(the FD&C Act) (21 U.S.C. 348(a)), the use of a food additive is deemed
unsafe unless one of the following is applicable: (1) It conforms to an
exemption for investigational use under section 409(j) of the FD&C Act;
(2) it conforms to the terms of a regulation prescribing its use; or
(3) in the case of a food additive which meets the definition of a
food-contact substance in section 409(h)(6) of the FD&C Act, there is
either a regulation authorizing its use in accordance with section
409(a)(3)(A) or an effective notification in accordance with section
409(a)(3)(B).

    The regulations in Sec.  170.39 (21 CFR 170.39) established a
process that provides the manufacturer with an opportunity to
demonstrate that the likelihood or extent of migration to food of a
substance used in a food-contact article is so trivial that the use
need not be the subject of a food additive listing regulation or an
effective notification. The Agency has established two thresholds for
the regulation of substances used in food-contact articles. The first
exempts those substances used in food-contact articles where the
resulting dietary concentration would be at or below 0.5 part per
billion (ppb). The second exempts regulated direct food additives for
use in food-contact articles where the resulting dietary exposure is 1
percent or less of the acceptable daily intake for these substances.
    In order to determine whether the intended use of a substance in a
food-contact article meets the threshold criteria, certain information
specified in Sec.  170.39(c) must be submitted to FDA. This information
includes the following components: (1) The chemical composition of the
substance for which the request is made; (2) detailed information on
the conditions of use of the substance; (3) a clear statement of the
basis for the request for exemption from regulation as a food additive;
(4) data that will enable FDA to estimate the daily dietary
concentration resulting from the proposed use of the substance; (5)
results of a literature search for toxicological data on the substance
and its impurities; and (6) information on the environmental impact
that would result from the proposed use.
    FDA uses this information to determine whether the food-contact
article meets the threshold criteria. Respondents to this information
collection are individual manufacturers and suppliers of substances
used in food-contact articles (i.e., food packaging and food processing
equipment) or of the articles themselves.

                                 Table 1--Estimated Annual Reporting Burden \1\
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                                                     Number of                        Average
          21 CFR 170.39              Number of     responses per   Total annual     burden per      Total hours
                                    respondents     respondent       responses       response
----------------------------------------------------------------------------------------------------------------
Threshold of regulation for                    7               1               7              48             336
 substances used in food-contact
 articles.......................
----------------------------------------------------------------------------------------------------------------
\1\ There are no capital costs or operating and maintenance costs associated with this collection of
  information.

    In compiling these estimates, we consulted our records of the
number of regulation exemption requests received in the past three
years. The annual hours per response reporting estimate of 48 hours is
based on information received from representatives of the food
packaging and processing industries and Agency records.
    We estimate that approximately 7 requests per year will be
submitted under the threshold of regulation exemption process of Sec.
170.39, for a total of 336 hours. The threshold of regulation process
offers one advantage over the premarket notification process for food-
contact substances established by section 409(h) of FD&C Act (OMB
control number 0910-0495) in that the use of a substance exempted by
FDA is not limited to only the manufacturer or supplier who submitted
the request for an exemption. Other manufacturers or suppliers may use
exempted substances in food-contact articles as long as the conditions
of use (e.g., use levels, temperature, type of food contacted, etc.)
are those for which the exemption was issued. As a result, the overall
burden on both Agency and the regulated industry would be significantly
less in that other manufacturers and suppliers would not have to
prepare, and we would not have to review, similar submissions for
identical components of food-contact articles used under identical
conditions. Manufacturers and other interested persons can easily
access an up-to-date list of exempted substances which is on display at
FDA's Division of Dockets Management and on the Internet at http://www.fda.gov/Food/IngredientsPackagingLabeling/PackagingFCS/ThresholdRegulationExemptions/ucm093685.htm. Having the list of
exempted substances publicly available decreases the likelihood that a
company would submit a food additive petition or a notification for the
same type of food-contact application of a substance for which the
Agency has previously granted an exemption from the food additive
listing regulation requirement.

    Dated: May 5, 2016.
Leslie Kux,
Associate Commissioner for Policy.
[FR Doc. 2016-11083 Filed 5-10-16; 8:45 am]
 BILLING CODE 4164-01-P


[Federal Register: July 27, 2010 (Volume 75, Number 143)]
[Notices]
[Page 43970-43971]
[DOCID:fr27jy10-81]

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ENVIRONMENTAL PROTECTION AGENCY

[EPA-HQ-OECA-2009-0422; FRL-9181-2]

Agency Information Collection Activities; Submission to OMB for
Review and Approval; Comment Request; NESHAP for Chromium Emissions
From Hard and Decorative Chromium Electroplating and Chromium Anodizing
Tanks (Renewal), EPA ICR Number 1611.07, OMB Control Number 2060-0327

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

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SUMMARY: In compliance with the Paperwork Reduction Act (44 U.S.C. 3501
et seq.), this document announces that an Information Collection
Request (ICR) has been forwarded to the Office of Management and Budget
(OMB) for review and approval. This is a request to renew an existing
approved collection. The ICR which is abstracted below describes the
nature of the collection and the estimated burden and cost.

DATES: Additional comments may be submitted on or before August 26,
2010.

ADDRESSES: Submit your comments, referencing docket ID number EPA-HQ-
OECA-2009-0422, to (1) EPA online using http://www.regulations.gov (our
preferred method), or by e-mail to<EMAIL_ADDRESS>or by mail to:
EPA Docket Center (EPA/DC), Environmental Protection Agency,
Enforcement and Compliance Docket and Information Center, mail code
28221T, 1200 Pennsylvania Avenue, NW., Washington, DC 20460, and (2)
OMB at: Office of Information and Regulatory Affairs, Office of
Management and Budget (OMB), Attention: Desk Officer for EPA, 725 17th
Street, NW., Washington, DC 20503.

FOR FURTHER INFORMATION CONTACT: John Schaefer, Office of Air Quality
Planning and Standards, Sector Policies and Programs Division (D243-
05), Measurement Policy Group, Environmental Protection Agency,
Research Triangle Park, North Carolina 27711; telephone number: (919)
541-0296; fax number:<PHONE_NUMBER>; e-mail address:
<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: EPA has submitted the following ICR to OMB
for review and approval according to the procedures prescribed in 5 CFR
1320.12. On July 8, 2009 (74 FR 32581), EPA sought comments on this ICR
pursuant to 5 CFR 1320.8(d). EPA received no comments. Any additional
comments on this ICR should be submitted to EPA and OMB within 30 days
of this notice.
    EPA has established a public docket for this ICR under docket ID
number EPA-HQ-OECA-2009-0422, which is available for public viewing
online at http://www.regulations.gov, in person viewing at the
Enforcement and Compliance Docket in the EPA Docket Center (EPA/DC),
EPA West, Room 3334, 1301 Constitution Avenue, NW., Washington, DC. The
EPA Docket Center Public Reading Room is open from 8:30 a.m. to 4:30
p.m., Monday through Friday, excluding legal holidays. The telephone
number for the Reading Room is<PHONE_NUMBER>, and the telephone number
for the Enforcement and Compliance Docket is<PHONE_NUMBER>.
    Use EPA's electronic docket and comment system at http://
www.regulations.gov, to submit or view public comments, access the
index listing of the contents of the docket, and to access those
documents in the docket that are available electronically. Once in the
system, select ``docket search,'' then key in the docket ID number
identified above. Please note that EPA's policy is that public
comments, whether submitted electronically or in paper, will be made
available for public viewing at http://www.regulations.gov, as EPA
receives them and without change, unless the comment contains
copyrighted material, Confidential Business Information (CBI), or other
information whose public disclosure is restricted by statute. For
further information about the electronic docket, go to http://
www.regulations.gov.
    Title: NESHAP for Chromium Emissions from Hard and Decorative
Chromium Electroplating and Chromium Anodizing Tanks (Renewal).
    ICR Numbers: EPA ICR Number 1611.07, OMB Control Number 2060-0327.
    ICR Status: This ICR is scheduled to expire on September 30, 2010.
Under OMB regulations, the Agency may continue to conduct or sponsor
the collection of information while this submission is pending at OMB.
An Agency may not conduct or sponsor, and a person is not required to
respond to, a collection of information unless it displays a currently
valid OMB control number. The OMB control numbers for EPA's regulations
in title 40 of the CFR, after appearing in the Federal Register when
approved, are listed in 40 CFR part 9, and displayed either by
publication in the Federal Register or by other appropriate means, such
as on the related collection instrument or form, if applicable. The
display of OMB control numbers in certain EPA regulations is
consolidated in 40 CFR part 9.
    Abstract: The affected entities are subject to the General
Provisions of the NESHAP at 40 CFR part 63, subpart A, and any changes,
or additions to the Provisions specified at 40 CFR part 63, subpart N.
Owners or operators of the affected facilities must submit a one-time-
only report of any physical or operational changes, initial performance
tests, and periodic reports and results. Owners or operators are also
required to maintain records of the occurrence and duration of any
startup, shutdown, or malfunction in the operation of an affected
facility, or any period during which the monitoring system is
inoperative. Reports, at a minimum, are required semiannually.
    Burden Statement: The annual public reporting and recordkeeping
burden for this collection of information is

estimated to average 75.08 hours per response. Burden means the total
time, effort, or financial resources expended by persons to generate,
maintain, retain, or disclose or provide information to or for a
Federal agency. This includes the time needed to review instructions;
develop, acquire, install, and utilize technology and systems for the
purposes of collecting, validating, and verifying information,
processing and maintaining information, and disclosing and providing
information; adjust the existing ways to comply with any previously
applicable instructions and requirements which have subsequently
changed; train personnel to be able to respond to a collection of
information; search data sources; complete and review the collection of
information; and transmit or otherwise disclose the information.
    Respondents/Affected Entities: Hard chromium electroplating,
decorative chromium electroplating, and chromium anodizing operations.
    Estimated Number of Respondents: 1,770.
    Frequency of Response: Initially, occasionally, quarterly,
semiannually, and annually.
    Estimated Total Annual Hour Burden: 171,118.
    Estimated Total Annual Cost: $31,933,586, which includes $5,383,586
in labor costs, $0 in capital/startup costs, and $26,550,000 in
operation and maintenance (O&M) costs.
    Changes in the Estimates: There was a decrease in burden hours,
costs, and number of responses currently identified in the OMB
Inventory of Approved Burdens. This is due to a change in the number of
estimated chromium electroplating and anodizing operations affected by
the ICR since the last renewal which decreased from 5,020 to 1,770
sources.

    Dated: July 19, 2010.
John Moses,
Director, Collection Strategies Division.
[FR Doc. 2010-18382 Filed 7-26-10; 8:45 am]
BILLING CODE 6560-50-P


Table A State total Electric Generating Unit ( EGU) SO2 and NOx emissions for the 2015 nationwide base case, " modeled" 2015 BART and CAIR + BART cases and the " updated" nationwide BART and CAIR + BART cases ( in thousands of tons per year)

State Name SO2 NOx SO2 NOx SO2 NOx SO2 NOx SO2 NOx Alabama 405 134 272 111 227 107 255 49 255 49 Arizona 60 80 60 51 60 66 60 51 55 66 Arkansas 82 44 15 31 23 31 82 32 23 32 California 7 27 3 20 7 27 3 19 7 27 Colorado 93 69 47 45 57 60 47 45 57 60 Connecticut 7 6 4 6 4 6 3 7 4 7 Delaware 45 11 16 9 31 9 18 7 31 10 District of Columbia 0 0 0 0 0 0 0 0 0 0 Florida 221 151 159 120 228 133 167 61 167 61 Georgia 588 141 205 77 273 94 249 66 259 67 Idaho 0 1 0 1 0 1 0 1 0 1 Illinois 451 161 280 86 333 89 239 65 244 66 Indiana 556 236 1,128 166 1,140 182 353 84 383 86 Iowa 172 85 96 51 189 71 125 39 164 44 Kansas 80 90 63 39 90 40 49 39 59 40 Kentucky 420 179 307 91 518 110 271 64 282 78 Louisiana 99 50 31 38 36 40 62 30 62 30 Maine 6 2 5 2 6 2 5 2 6 2 Maryland 313 59 84 24 80 24 24 12 24 14 Massachusetts 17 19 18 19 17 20 17 19 18 20 Michigan 406 124 219 85 251 95 385 85 392 88 Minnesota 95 77 114 50 152 57 72 37 85 40 Mississippi 86 38 25 19 29 31 86 12 86 12 Missouri 276 122 184 66 247 72 245 58 269 62 Montana 22 38 27 37 35 38 20 37 22 38 Nebraska 72 49 71 33 85 43 30 33 37 43 Nevada 31 47 27 26 27 31 27 26 27 31 New Hampshire 7 3 7 3 8 3 7 3 8 3 New Jersey 34 18 39 13 32 17 21 11 36 18 New Mexico 53 74 52 32 53 72 52 32 53 72 New York 143 47 131 44 140 47 41 34 52 37 North Carolina 150 64 91 56 101 56 139 49 145 51 North Dakota 106 70 88 43 98 40 82 44 92 40 Ohio 1,095 278 1,100 169 1,113 178 202 80 239 86 Oklahoma 118 78 43 53 51 57 37 53 47 58 Oregon 10 11 10 7 10 11 10 7 10 11 Pennsylvania 869 205 372 123 345 149 133 77 150 80 Rhode Island 0 0 0 0 0 1 0 0 0 1 South Carolina 170 51 120 34 161 38 106 36 142 36 South Dakota 12 15 2 3 4 2 2 3 4 2 Tennessee 316 106 566 83 582 76 161 27 163 27 Texas 418 181 257 181 263 179 352 160 362 161 Utah 53 61 53 50 53 53 53 50 53 53 Vermont 0 0 0 0 0 0 0 0 0 0 Virginia 182 61 217 61 204 61 116 38 118 40 Washington 10 25 10 13 11 15 9 12 10 15 West Virginia 495 176 402 90 394 85 116 44 119 44 Wisconsin 157 76 58 47 100 65 132 32 151 39 Wyoming 73 81 82 44 83 53 69 44 71 53 Total 9,084 3,721 7,162 2,454 7,953 2,738 4,735 1,816 5,042 2,000 Updated BART 2015 Base Case Modeled BART Updated CAIR + BART Modeled CAIR + BART Table B State Electric Generating Unit ( EGU) SO2 and NOx emissions Calculation of the 1st and 2nd better than BART prongs for the " modeled" and " updated" emissions cases ( in thousands of tons per year)

State Name SO2 NOx SO2 NOx SO2 NOx SO2 NOx SO2 NOx Alabama 150 85 149 85 17 62  29 58  46  4 Arizona 0 29 5 15 0 0 5 0 5 0 Arkansas 0 12 60 12  67  1 0 0 67 1 California 4 8 0 0 0 1 0 0 0  1 Colorado 46 24 35 9 0 0 0 0 0 0 Connecticut 4  1 3  1 1  1 0  1  1 0 Delaware 27 4 14 1  2 2 0  1 2  3 District of Columbia 0 0 0 0 0 0 0 0 0 0 Florida 54 90 54 90  8 59 61 71 69 12 Georgia 339 75 329 74  44 11 15 27 59 16 Idaho 0 0 0 0 0 0 0 0 0 0 Illinois 212 96 207 95 41 21 89 23 48 2 Indiana 203 152 173 149 775 82 757 96  18 14 Iowa 47 46 8 42  29 12 25 27 54 15 Kansas 31 51 22 50 14 0 32 0 18 0 Kentucky 149 115 139 101 36 27 236 33 200 6 Louisiana 37 20 37 21  31 8  26 10 5 2 Maine 1 0 0 0 0 0 0 0 0 0 Maryland 289 47 289 45 60 12 56 10  4  2 Massachusetts 0 0 0 0 1 0 0 0  1 0 Michigan 21 39 15 36  166 0  140 6 26 6 Minnesota 23 40 10 37 42 13 67 17 25 4 Mississippi 0 26 0 25  61 7  57 19 4 12 Missouri 31 64 7 60  61 8  21 10 40 2 Montana 2 1 0 0 7 0 13 0 6 0 Nebraska 42 16 36 7 41 0 48 0 7 0 Nevada 4 21 5 16 0 0 1 0 1 0 New Hampshire 0 0 0 0 0 0 0 0 0 0 New Jersey 13 7  2 0 18 2  4  1  22  3 New Mexico 1 42 0 2 0 0 0 0 0 0 New York 102 13 91 10 90 10 88 9  2  1 North Carolina 11 15 4 12  48 7  45 5 3  2 North Dakota 24 26 14 30 6  1 5 0  1 1 Ohio 893 198 856 192 898 89 874 92  24 3 Oklahoma 81 25 71 20 6 0 4  1  2  1 Oregon 0 4 0 0 0 0 0 0 0 0 Pennsylvania 736 128 719 125 239 46 194 70  45 24 Rhode Island 0 0 0 0 0 0 0 0 0 0 South Carolina 64 15 29 14 14  2 19 1 5 3 South Dakota 10 12 8 13 0 0 0 0 0 0 Tennessee 155 79 153 78 405 56 419 48 14  8 Texas 66 21 55 20  95 21  99 19  4  2 Utah 0 11 0 7 0 0 0 0 0 0 Vermont 0 0 0 0 0 0 0 0 0 0 Virginia 66 23 63 21 101 23 86 21  15  2 Washington 1 13 0 10 1 1 1 0 0  1 West Virginia 379 132 377 132 286 46 276 41  10  5 Wisconsin 25 44 6 37  74 15  51 26 23 11 Wyoming 4 37 3 28 13 0 12 0  1 0 Total 4,349 1,905 4,042 1,721 2,427 638 2,911 738 484 100 [ Updated 1st prong] 2015 Base Case  ( Updated CAIR + BART) 2015 Base Case  ( Modeled CAIR + BART)

[ Modeled 1st prong] Difference between the updated 2nd prong and the modeled 2nd prong ( difference of the differences) Modeled BART  ( Modeled CAIR + BART)

[ Modeled 2nd prong] Updated BART  ( Updated CAIR + BART)

[ Updated 2nd prong] Table C State total Electric Generating Unit ( EGU) SO2 and NOx emissions for the " updated" CAIR + BART + CAMR case, and the calculation of the 1st and 2nd better than BART prongs using the CAIR + BART + CAMR case ( in thousands of tons per year)

State Name SO2 NOx SO2 NOx SO2 NOx Alabama 260 49 145 85  33 58 Arizona 60 66 0 14 0 0 Arkansas 23 32 60 12 0 0 California 7 27 0 1 0 1 Colorado 57 60 35 9 0 0 Connecticut 4 7 3  1 0  1 Delaware 28 10 17 1 4 0 District of Columbia 0 0 0 0 0 0 Florida 167 61 54 90 61 71 Georgia 241 67 347 74 33 27 Idaho 0 1 0 0 0 0 Illinois 245 66 206 95 88 23 Indiana 377 82 179 154 764 100 Iowa 163 52 8 34 26 19 Kansas 59 40 22 50 32 0 Kentucky 264 77 156 102 254 34 Louisiana 62 32 37 18  26 8 Maine 6 2 0 0 0 0 Maryland 43 14 270 45 37 10 Massachusetts 18 20 0 0 0 0 Michigan 394 94 13 30  142 1 Minnesota 85 40 10 37 67 16 Mississippi 86 8 0 30  57 24 Missouri 266 70 10 52  19 2 Montana 22 38 0 0 13 0 Nebraska 37 43 36 7 48 0 Nevada 27 31 4 16 0 0 New Hampshire 8 3 0 0 0 0 New Jersey 32 13 1 5  1 4 New Mexico 53 72 0 2 0 0 New York 49 24 95 23 92 22 North Carolina 125 51 25 12  24 5 North Dakota 85 40 21 30 13 0 Ohio 272 93 824 184 842 85 Oklahoma 47 58 71 20 4  1 Oregon 10 11 0 0 0 0 Pennsylvania 141 74 727 131 203 75 Rhode Island 0 1 0 0 0 0 South Carolina 106 37 65 14 55 1 South Dakota 4 2 8 13 0 0 Tennessee 191 27 124 78 391 48 Texas 373 159 45 22  110 20 Utah 53 53 0 7 0 0 Vermont 0 0 0 0 0 0 Virginia 95 40 87 21 109 21 Washington 11 15  1 10 0 0 West Virginia 111 40 384 136 283 45 Wisconsin 151 41 7 35  50 24 Wyoming 74 53  1 28 9 0 Total 4,992 1,994 4,092 1,726 2,961 744 Updated CAIR + BART + CAMR Updated BART  ( updated CAIR + BART + CAMR) [ updated 2nd prong w/ CAMR] 2015 Base Case  ( updated CAIR + BART + CAMR) [ updated 1st prong w/ CAMR]


[Federal Register Volume 79, Number 72 (Tuesday, April 15, 2014)]
[Notices]
[Pages 21328-21331]
[FR Doc No: 2014-08527]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-71925; File No. SR-NASDAQ-2014-031]

Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change to
the Qualified Market Maker Incentive Program Under Rule 7014, and the
Schedule of Fees and Rebates Under Rule 7018

April 10, 2014.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on April 2, 2014 The NASDAQ Stock Market LLC (``NASDAQ'' or the
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') a proposed rule change as described in Items I, II and
III below, which Items have been prepared by the Exchange. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    NASDAQ is proposing to make changes to the Qualified Market Maker
(``QMM'') Incentive Program under Rule 7014, and the schedule of fees
and rebates for execution and routing of orders under Rule 7018. The
changes will be implemented effective April 2, 2014.
    The text of the proposed rule change is available at
nasdaq.cchwallstreet.com, at NASDAQ's principal office, and at the
Commission's Public Reference Room.

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

    In its filing with the Commission, NASDAQ included statements
concerning the purpose of, and basis for, the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of those statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant parts of such
statements.

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

1. Purpose
    NASDAQ is proposing several changes to the QMM Incentive Program
under Rule 7014 and to the schedule of fees and credits applicable to
execution and routing of orders under Rule 7018, which are described in
detail below.
QMM Incentive Program
    NASDAQ is adding a new QMM eligibility requirement to the QMM
Incentive Program under Rule 7014(d). A QMM is a member that makes a
significant contribution to market quality by providing liquidity at
the National Best Bid or Offer (``NBBO'') in a large number of stocks
for a significant portion of the day. In addition, the member must
avoid imposing the burdens on NASDAQ and its market participants that
may be associated with excessive rates of entry of orders away from the
inside and/or order cancellation. The designation reflects the QMM's
commitment to provide meaningful and consistent support to

market quality and price discovery by extensive quoting at the NBBO in
a large number of securities. In return for its contributions, certain
financial benefits are provided to a QMM with respect to a particular
MPID (a ``QMM MPID''), as described under Rule 7014(e). Currently, a
member may be designated as a QMM with respect to one or more of its
MPIDs if the member is not assessed any ``Excess Order Fee'' under Rule
7018 during the month, and through such MPID the member quotes at the
NBBO at least 25% of the time during regular market hours in an average
of at least 1,000 securities per day during the month.\3\ NASDAQ is
proposing to now require a member to also execute at least 0.30% of
Consolidated Volume \4\ in an MPID in a month to qualify as a QMM, in
addition to the existing QMM eligibility requirements under Rule
7014(d). Adding the 0.30% Consolidated Volume requirement furthers the
goals of the program to promote price discovery and market quality by
requiring the member to not only add to the quality of the markets in
the price of its orders relative to the NBBO, but also to add a certain
level of liquidity as well. A liquidity provider that executes
substantive volume demonstrates its willingness to stand ready to buy
or sell securities (i.e., to provide liquidity) by consummating
transactions. The requirement outlined above is intended to ensure that
QMMs remain bona fide liquidity providers, in addition to participants
that actively quote at the NBBO.
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    \3\ Rule 7014(d).
    \4\ Consolidated Volume is defined as: The total consolidated
volume reported to all consolidated transaction reporting plans by
all exchanges and trade reporting facilities during a month,
excluding executed orders with a size of less than one round lot.
For purposes of calculating Consolidated Volume and the extent of a
member's trading activity, expressed as a percentage of or ratio to
Consolidated Volume, the date of the annual reconstitution of the
Russell Investments Indexes shall be excluded from both total
Consolidated Volume and the member's trading activity. See Rule
7014(h)(5).
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Amended Fees for Execution and Routing of Securities Listed on NASDAQ
(Tape C)
    NASDAQ is proposing to reduce the credits provided to members that
enter orders that provide non-displayed liquidity (other than
Supplemental Orders) in NASDAQ-listed securities. Currently, NASDAQ
provides a credit of $0.0017 per share executed for midpoint orders if
the member provides an average daily volume of 5 million or more shares
through midpoint orders during the month, and a credit of $0.0014 per
share executed for midpoint orders if the member provides an average
daily volume of less than 5 million shares through midpoint orders
during the month. For other non-displayed orders, NASDAQ provides a
credit of $0.0010 per share executed if the member provides an average
daily volume of 1 million or more shares per day through midpoint
orders or other non-displayed orders during the month, and a credit of
$0.0005 per share executed for other non-displayed orders. NASDAQ is
proposing to reduce the credit to a member that provides an average
daily volume of 1 million or more shares per day through midpoint
orders or other non-displayed orders during the month from $0.0010 per
share executed to $0.0005 per share executed. NASDAQ is also proposing
to eliminate the $0.0005 per share executed credit currently provided
for other non-displayed orders and to provide no credit or fee for such
orders. NASDAQ recognizes the special role that it plays as the listing
market for securities listed on the NASDAQ stock market and seeks to
encourage displayed quotation as much as possible for these securities.
By reducing the financial incentive to provide non-displayed liquidity,
NASDAQ believes it may increase the incentive to provide displayed
liquidity, thereby increasing the pool of available liquidity. This has
various beneficial effects, not least of which is improved price
stability.
Fees for Execution in the Opening Cross
    NASDAQ is proposing to add a new eligibility requirement to the fee
cap on Opening Cross executions under Rule 7018(e). Currently, members
that participate in the Opening Cross are assessed fees for their
executions in the cross up to a maximum of $20,000. The fee cap is
designed to balance the need to assess fees for executions, yet also
promote liquidity in the Opening Cross. NASDAQ is proposing to require
that, to be eligible for the $20,000 fee cap, a member must add at
least one million shares of liquidity to the market, on average, per
month. NASDAQ believes that the primary impact of this change will be
to encourage firms that currently have a relatively large presence in
the opening cross, but a disproportionately small presence during the
continuous market, to increase their participation in the continuous
market in order to continue to receive the benefit afforded by the cap.
The improvement in available liquidity will, in turn, benefit all
market participants.
2. Statutory Basis
    NASDAQ believes that the proposed rule change is consistent with
the provisions of Section 6 of the Act,\5\ in general, and with
Sections 6(b)(4) and 6(b)(5) of the Act,\6\ in particular, in that it
provides for the equitable allocation of reasonable dues, fees and
other charges among members and issuers and other persons using any
facility or system which NASDAQ operates or controls, and is not
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
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    \5\ 15 U.S.C. 78f.
    \6\ 15 U.S.C. 78f(b)(4) and (5).
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    The proposed new eligibility requirement under the QMM Incentive
Program is reasonable because it furthers the goal of the program,
namely, to promote price discovery and market quality by adding a
requirement that a member provide a certain level of Consolidated
Volume through its MPIDs. The new Consolidated Volume requirement
promotes market liquidity, which NASDAQ believes is an appropriate
application of the program and the favorable pricing it provides to
liquidity providers that qualify for the program. The proposed new
eligibility requirement is consistent with an equitable allocation of
fees and is not unfairly discriminatory because the pricing applies
equally to all NASDAQ members that are QMMs. Moreover, the favorable
pricing of the incentive program is designed to encourage meaningful
improvement to the market by ensuring liquidity providers are active
and providing order activity that promotes price discovery and market
stability. As a consequence, although some members may no longer
qualify for the program due to the new requirement, NASDAQ believes
that the new requirement is not unfairly discriminatory because such
liquidity providers may elect to direct increased order flow to NASDAQ
to meet the Consolidated Volume requirement.
    The proposed reduction in the credits to members that enter orders
that provide non-displayed liquidity (other than Supplemental Orders)
in NASDAQ-listed securities is reasonable because NASDAQ is merely
reducing the credit provided for such executions, and in the case of
non-displayed liquidity that does not otherwise qualify for the other
credits of the rule, is providing no credit. NASDAQ notes that the
credits provided by the rule are given in lieu of assessing normal
fees, and accordingly provide incentive to market participants to enter
such orders. The proposed change balances the Exchange's desire to
provide certain incentives to market participants with the costs the
Exchange incurs in providing such incentives, which

ultimately affect the ability to sustain them. The proposed changes to
the credits provided to members that enter orders that provide non-
displayed liquidity (other than Supplemental Orders) in NASDAQ-listed
securities is consistent with an equitable allocation of fees and is
not unfairly discriminatory because the pricing, which is the same for
all NASDAQ participants, applies solely to members that opt to enter
such non-displayed orders in NASDAQ-listed securities. Moreover,
reducing the credits provided for such orders, yet providing greater
incentives for identical orders in non-NASDAQ listed securities is not
unfairly discriminatory because it is consistent with need to balance
the credits provided by the Exchange with the order activity of the
market.
    The proposed new eligibility requirement for the $20,000 Opening
Cross fee cap is reasonable because it requires participants in the
Opening Cross to provide a certain level of liquidity to the market,
thus providing incentive to such participants to improve the market
throughout the trading day in order to gain the benefit of the fee cap.
As such, the proposed change is consistent with NASDAQ's ongoing
efforts to use pricing incentives to attract orders that NASDAQ
believes will improve market quality. The proposed new eligibility
requirement for the $20,000 Opening Cross fee cap is consistent with an
equitable allocation of fees and is not unfairly discriminatory because
the fee cap is available to all market participants that participate in
the Opening Cross and ties the benefit of the fee cap to market
activity that benefits all market participants.
    Finally, NASDAQ notes that it operates in a highly competitive
market in which market participants can readily favor competing venues
if they deem fee levels at a particular venue to be excessive. In such
an environment, NASDAQ must continually adjust its fees to remain
competitive with other exchanges and with alternative trading systems
that have been exempted from compliance with the statutory standards
applicable to exchanges. NASDAQ believes that the proposed rule change
reflects this competitive environment because it is designed to ensure
that the charges and credits for participation on NASDAQ reflect
changes in the cost of such participation to NASDAQ, and its desire to
attract order flow that improves the market for all participants.

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

    NASDAQ does not believe that the proposed rule change will result
in any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act, as amended.\7\ The proposed
changes to fees are reflective of NASDAQ's efforts to use reduced fees
and credits to improve market quality and attract order flow. NASDAQ
notes that it operates in a highly competitive market in which market
participants can readily favor competing venues if they deem fee levels
at a particular venue to be excessive, or rebate opportunities
available at other venues to be more favorable. In such an environment,
NASDAQ must continually adjust its fees and credits to remain
competitive with other exchanges and with alternative trading systems
that have been exempted from compliance with the statutory standards
applicable to exchanges. Because competitors are free to modify their
own fees in response, and because market participants may readily
adjust their order routing practices, NASDAQ believes that the degree
to which fee changes in this market may impose any burden on
competition is extremely limited. In this instance, although the change
to the eligibility requirement of the QMM program may limit the
benefits of the program in NASDAQ-listed securities to the extent
market makers no longer qualify, the incentive program remains in place
and with a qualification requirement that is reasonable and which
promotes improvement of market quality. Similarly, the changes to the
credits provided for certain non-displayed orders in NASDAQ-listed
securities and the eligibility for the Opening Cross fee cap do not
impose a burden on competition because the benefit provided in the form
of reduced fees are tied to reasonable requirements that are designed
to improve market quality. Moreover, reducing the credit provided for
certain non-displayed orders in NASDAQ-listed securities is consistent
with the Exchange's need to balance the costs of such pricing with the
benefit provided to the market. In sum, if the changes proposed herein
are unattractive to market participants, it is likely that NASDAQ will
lose market share as a result. Accordingly, NASDAQ does not believe
that the proposed changes will impair the ability of members or
competing order execution venues to maintain their competitive standing
in the financial markets.
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    \7\ 15 U.S.C. 78f(b)(8).
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C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others

    Written comments were neither solicited nor received.

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

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act.\8\
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    \8\ 15 U.S.C. 78s(b)(3)(A)(ii).
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    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is: (i)
Necessary or appropriate in the public interest; (ii) for the
protection of investors; or (iii) otherwise in furtherance of the
purposes of the Act. If the Commission takes such action, the
Commission shall institute proceedings to determine whether the
proposed rule should be approved or disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml ); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-NASDAQ-2014-031 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NASDAQ-2014-031. This
file number should be included on the subject line if email is used.
    To help the Commission process and review your comments more
efficiently, please use only one method. The Commission will post all
comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml ). Copies of the submission, all subsequent amendments,
all written statements with respect to the proposed rule change that
are filed with the Commission, and all written

communications relating to the proposed rule change between the
Commission and any person, other than those that may be withheld from
the public in accordance with the provisions of 5 U.S.C. 552, will be
available for Web site viewing and printing in the Commission's Public
Reference Room, 100 F Street NE., Washington, DC 20549, on official
business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of
the filing also will be available for inspection and copying at the
principal office of the Exchange. All comments received will be posted
without change; the Commission does not edit personal identifying
information from submissions. You should submit only information that
you wish to make available publicly.
    All submissions should refer to File Number SR-NASDAQ-2014-031, and
should be submitted on or before May 6, 2014.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2014-08527 Filed 4-14-14; 8:45 am]
BILLING CODE 8011-01-P