[Federal Register Volume 84, Number 173 (Friday, September 6, 2019)]
[Notices]
[Pages 46987-46988]
[FR Doc No: 2019-19240]

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SECURITIES AND EXCHANGE COMMISSION

Proposed Collection; Comment Request

Upon Written Request, Copies Available From: Securities and Exchange
Commission, Office of FOIA Services, 100 F Street NE, Washington, DC
20549-2736

Extension:
Rule 17f-1(g), SEC File No. 270-30, OMB Control No. 3235-0290

    Notice is hereby given that pursuant to the Paperwork Reduction Act
of 1995 (``PRA'') (44 U.S.C. 3501 et seq.), the Securities and Exchange
Commission (``Commission'') is soliciting comments on the existing
collection of information provided for in Rule 17f-1(g) (17 CFR
240.17f-1(g)), under the Securities Exchange Act of 1934 (15 U.S.C. 78a
et seq.). The Commission plans to submit this existing collection of
information to the Office of Management and Budget (``OMB'') for
extension and approval.
    Paragraph (g) of Rule 17f-1 requires that all reporting
institutions (i.e., every national securities exchange, member

thereof, registered securities association, broker, dealer, municipal
securities dealer, registered transfer agent, registered clearing
agency, participant therein, member of the Federal Reserve System and
bank insured by the FDIC) maintain and preserve a number of documents
related to their participation in the Lost and Stolen Securities
Program (``Program'') under Rule 17f-1. The following documents must be
kept in an easily accessible place for three years, according to
paragraph (g): (1) Copies of all reports of theft or loss (Form X-17F-
1A) filed with the Commission's designee: (2) All agreements between
reporting institutions regarding registration in the Program or other
aspects of Rule 17f-1; and (3) all confirmations or other information
received from the Commission or its designee as a result of inquiry.
    Reporting institutions utilize these records and reports (a) to
report missing, lost, stolen or counterfeit securities to the database,
(b) to confirm inquiry of the database, and (c) to demonstrate
compliance with Rule 17f-1. The Commission and the reporting
institutions' examining authorities utilize these records to monitor
the incidence of thefts and losses incurred by reporting institutions
and to determine compliance with Rule 17f-1. If such records were not
retained by reporting institutions, compliance with Rule 17f-1 could
not be monitored effectively.
    The Commission estimates that there are approximately 10,018
reporting institutions (respondents) and, on average, each respondent
would need to retain 33 records annually, with each retention requiring
approximately 1 minute (a total of 33 minutes or 0.5511 hours per
respondent per year). Thus, the total estimated annual time burden for
all respondents is 5,521 hours (10,018 x 0.5511 hours = 5,521).
Assuming an average hourly cost for clerical work of $50.00, the
average total yearly record retention internal cost of compliance for
each respondent would be $27.56 ($50 x 0.5511 hours). Based on these
estimates, the total annual internal compliance cost for the estimated
10,018 reporting institutions would be approximately $276,096 (10,018 x
$27.56).
    Written comments are invited on: (a) Whether the proposed
collection of information is necessary for the proper performance of
the functions of the Commission, including whether the information
shall have practical utility; (b) the accuracy of the Commission's
estimates of the burden of the proposed collection of information; (c)
ways to enhance the quality, utility, and clarity of the information to
be collected; and (d) ways to minimize the burden of the collection of
information on respondents, including through the use of automated
collection techniques or other forms of information technology.
Consideration will be given to comments and suggestions submitted in
writing within 60 days of this publication.
    An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information under the PRA unless it
displays a currently valid OMB control number.
    Please direct your written comments to: Charles Riddle, Acting
Director/Chief Information Officer, Securities and Exchange Commission,
c/o Candace Kenner, 100 F Street NE, Washington, DC 20549, or send an
email to<EMAIL_ADDRESS>
    Dated: September 3, 2019.
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-19240 Filed 9-5-19; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 84, Number 34 (Wednesday, February 20, 2019)]
[Notices]
[Pages 5134-5136]
[FR Doc No: 2019-02734]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-85122; File No. SR-CboeBYX-2019-002]

Self-Regulatory Organizations; Cboe BYX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
the BYX Fee Schedule as It Relates to Pricing for the Use of Certain
Routing Strategies

February 13, 2019.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on February 1, 2019, Cboe BYX Exchange, Inc. (the ``Exchange'' or
``BYX'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the Exchange. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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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

    Cboe BYX Exchange, Inc. (``BYX'' or the ``Exchange'') is filing
with the Securities and Exchange Commission (the ``Commission'') a
proposed rule change to amend the BYX fee schedule as it relates to
pricing for the use of certain routing strategies. The text of the
proposed rule change is attached [sic] as Exhibit 5.
    The text of the proposed rule change is also available on the
Exchange's website (http://markets.cboe.com/us/equities/regulation/rule_filings/byx/), at the Exchange's Office of the Secretary, and at
the Commission's Public Reference Room.

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

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

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

1. Purpose
    The purpose of the proposed rule change is to amend the BYX fee
schedule to change the pricing applicable to orders routed using the
SLIM routing strategy in connection with planned changes to the System
routing table.\3\ SLIM is a routing strategy offered by the Exchange
that is used to target certain low cost protected market centers by
routing to those venues after accessing available liquidity on the BYX
Book, and prior to routing to other trading centers included in the
System routing table. The Exchange periodically changes the low cost
venues targeted by the SLIM routing strategy to ensure that the venues
prioritized for routing can be accessed at a low cost. Currently, three
exchanges are included in the System routing table as low cost
protected market centers: Cboe EDGA Exchange, Inc. (``EDGA''), Nasdaq
BX, Inc. (``BX''), and New York Stock Exchange LLC (``NYSE''). Pursuant
to Rule 11.13(b)(3), the Exchange has determined to modify the System
routing table such that NYSE would no longer be listed as a low cost
protected market center where orders are first routed after seeking
available liquidity on the BYX Book. In addition, the Exchange has
decided to add NYSE American LLC (``NYSE American'') and NYSE National,
Inc. (``NYSE National'') as low cost protected market centers. These
changes to the System routing table are scheduled to be introduced on
February 1, 2019.
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    \3\ The term ``System routing table'' refers to the proprietary
process for determining the specific trading venues to which the
System routes orders and the order in which it routes them. See Rule
11.13(b)(3). The Exchange reserves the right to maintain a different
System routing table for different routing options and to modify the
System routing table at any time without notice. Id.
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    Currently, orders routed using the SLIM routing strategy are
charged a fee of $0.00270 per share, except when routed to BZX or
NYSE.\4\ Orders routed to BZX using the SLIM routing strategy are
charged a fee of $0.0030 per share,\5\ and orders routed to NYSE using
this routing strategy are charged a fee of $0.00280 per share.\6\ The
Exchange proposes a number of changes to these fees in connection with
the changes to the routing table for SLIM.
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    \4\ See Cboe BZX U.S. Equities Exchange Fee Schedule, fee code
``SX.''
    \5\ See Cboe BZX U.S. Equities Exchange Fee Schedule, fee code
``SZ.''
    \6\ See Cboe BZX U.S. Equities Exchange Fee Schedule, fee code
``D.''
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    First, in recognition of the fact that EDGA and BX can be accessed
at a low cost today, the Exchange proposes to provide a rebate to
orders routed to these exchanges using the SLIM routing strategy. As
proposed, the rebate would be $0.00240 per share for orders routed to
EDGA, and $0.00100 for orders routed to BX. The rebates are consistent
with rebates currently offered for orders routed to EDGA and BX using
the Destination Specific, TRIM, or TRIM2 routing strategies, which
yield fee codes ``BJ'' and ``C,'' respectively. To effect the proposed
change, the Exchange would therefore add SLIM to the list of routing
strategies that yield fee code BJ and C when routed to EDGA or BX. In
addition, the fee schedule currently provides that the rebates offered
pursuant to fee codes BJ and C are applicable to eligible orders in all
securities. EDGA and BX, however, do not provide rebates to orders that
remove liquidity in securities priced below $1.00.\7\ As such, the
Exchange

proposes to amend the pricing for orders routed to these exchanges
pursuant to fee codes BJ and C, such that no charge or rebate would be
provided in securities priced below $1.00.
---------------------------------------------------------------------------

    \7\ Orders that remove liquidity on EDGA for Tapes A, B, and C
are neither charged a fee nor provided a rebate in securities priced
below $1.00. See Cboe EDGA U.S. Equities Exchange Fee Schedule, fee
codes ``BB,'' ``N,'' ``W.'' Orders that remove liquidity on Nasdaq
BX in such securities are charged a fee equal to 0.10% of the total
transaction cost. See Nasdaq BX Rulebook, Equity 7, Section 118(b).
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    Second, the Exchange proposes to add two new fee codes, MX and NX,
that relate to orders routed to NYSE American and NYSE National,
respectively, using the SLIM routing strategy. Orders routed using the
SLIM routing strategy would be charged a fee of $0.00020 per share if
executed on NYSE American. If executed on NYSE National, those orders
would be provided a rebate of $0.00200 per share in securities priced
at or above $1.00, and no charge or rebate would be applied for
securities priced below $1.00. The proposed fees and rebates chosen for
routing to these venues generally reflect the current transaction fees
and rebates available for accessing liquidity on those markets.\8\
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    \8\ NYSE American currently charges a fee for removing liquidity
that is $0.00020 per share in securities priced at or above $1.00,
and 0.25% of the total dollar value of the transaction in securities
priced below $1.00. See NYSE American Equities Price List, I.
Transaction Fees.
    NYSE National currently provides a rebate of $0.00200 per share
in securities priced at or above $1.00 for members that achieve
their taking tier. See NYSE National Schedule of Fees and Rebates,
I. Transaction Fees, B. Tiered Rates. Orders that remove liquidity
in securities below $1.00 are executed without charge or rebate. See
NYSE National, Schedule of Fees and Rebates, I. Transaction Fees, A.
General Rates.
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    Third, since the Exchange would now charge a low fee or pay a
rebate for routing to all low cost protected market centers using the
SLIM routing strategy, the Exchange proposes to increase the default
fee charged to orders routed using the SLIM routing strategy to
$0.00290 per share. This routing fee, designated under fee code SX,
would apply to all orders routed using the SLIM routing strategy,
except when routed to BX, BZX, EDGA, NYSE American, or NYSE National.
Since NYSE would no longer be included as a low cost protected market
center, the Exchange proposes to eliminate special pricing for orders
routed to NYSE using the SLIM routing strategy under fee code D. Such
orders would now pay the default routing fee for orders routed using
this routing strategy, as described above.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with Section 6 of the Act,\9\ in general, and furthers the requirements
of Section 6(b)(4),\10\ in particular, as it is designed to provide for
the equitable allocation of reasonable dues, fees and other charges
among its members and other persons using its facilities. The Exchange
believes the proposed routing fee changes are appropriate as they
reflect changes to the System routing table used to determine the order
in which venues are accessed using the SLIM routing strategy. SLIM
specifically targets certain equities exchanges that provide cheap
executions or rebates to liquidity removing orders, and routes to those
venues after trading with the BYX Book, and prior to accessing
liquidity that may be available on other venues on the System routing
table. The Exchange believes that the proposed changes reflect the
intent of members when they submit routable order flow to the Exchange
using the SLIM routing strategy.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78f.
    \10\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    The Exchange believes that it is reasonable and equitable to begin
rebating orders routed to EDGA and BX using the SLIM routing strategy.
Although the Exchange does not offer special pricing when routing to
those markets using the SLIM routing strategy today, the Exchange does
offer such incentives when routing to those markets using certain other
routing strategies, including Destination Specific, TRIM, or TRIM2. As
is the case for orders routed to EDGA and BX using those routing
strategies, the proposed rebates applicable to the SLIM routing
strategy are designed to reflect incentives offered to liquidity taking
orders on these two venues, which operating using taker/maker pricing
models that offer rebates to remove liquidity.
    The Exchange also believes that it is reasonable and equitable to
provide free executions, rather than rebates, for orders routed to EDGA
and BX using the Destination Specific, TRIM, TRIM2, or SLIM routing
strategies in securities priced below $1.00. Although EDGA and BX both
generally provide rebates to orders that remove liquidity, as described
above, those rebates are limited to securities priced at or above
$1.00.\11\ For orders that remove liquidity in securities priced below
$1.00, EDGA charges no fee and provides no rebate, while BX instead
charges a fee.\12\ With the proposed changes to the routing fees, the
Exchange would recoup some, but not all, of the cost associated with
routing orders in lower priced securities to these markets on behalf of
members that use the Destination Specific, TRIM, TRIM2, or SLIM routing
strategies.
---------------------------------------------------------------------------

    \11\ See supra note 7.
    \12\ Id.
---------------------------------------------------------------------------

    Similarly, the Exchange believes that it is reasonable and
equitable to provide special pricing for orders routed to NYSE American
and NYSE National using the SLIM routing strategy. As mentioned
previously, the Exchange is adding these two exchanges to its list of
low cost protected market centers, and wishes to provide the benefit of
the rebate or lower fee provided by those markets to BYX members using
the SLIM routing strategy. The Exchange believes that these changes may
increase interest in the Exchange's SLIM routing strategy, in
particular, by passing on better pricing to BYX members that choose to
enter such orders on the Exchange, thereby encouraging additional order
flow to be entered to the BYX Book.
    The rebates provided to orders routed to NYSE National using the
SLIM routing strategy would be limited to order price at or above $1.00
in light of the fact that NYSE National does not provide rebates to
liquidity removing orders in securities priced below $1.00. For
securities priced below $1.00, the Exchange would charge no fee and
provide no rebate, which is equivalent to pricing on NYSE National.\13\
Without limiting the proposed rebate for NYSE National to securities
priced at or above $1.00, the Exchange would pay a significant rebate
that would not be recouped via a rebate provided by the execution
venue. The Exchange believes that is reasonable and equitable to limit
routing rebates to circumstances where the Exchange would actually earn
a rebate from the away venue in order to properly recoup the costs of
accessing liquidity on such markets.
---------------------------------------------------------------------------

    \13\ See supra note 8.
---------------------------------------------------------------------------

    Given the proposed changes to the fees charged or rebates provided
when routing low cost protected market centers, the Exchange also
believes that it is reasonable and equitable to increase the fee
charged when routing to other equities markets. Specifically, the
Exchange charges a default routing fee for orders routed using the SLIM
routing strategy that is, in effect, a blended fee designed to
compensate the Exchange for routing to one of the venues not otherwise
subject to special pricing. Since the Exchange is introducing special
pricing for orders routed to low cost protected market centers, the
venues subject to this pricing, would, on average, charge a higher
execution fee for liquidity removing orders. Indeed, a number of the
trading centers that are

accessible using the SLIM routing strategy, including, for example, The
Nasdaq Stock Market LLC (``Nasdaq'') and Cboe EDGX Exchange, Inc.
(``EDGX''), charge a taker fee of $0.00300 per share.\14\ The Exchange
believes that the proposed increased routing fee for these orders
reflects an appropriate blended rate for accessing liquidity on those
markets, and would appropriately compensate the Exchange for the costs
associated with routing to such venues. Furthermore, the Exchange
believes that the changes to the System routing table would reduce the
chance that an order is routed to a high cost venue since routing to
low cost protected market centers is prioritized.
---------------------------------------------------------------------------

    \14\ See Nasdaq, Equity Rules, Pricing Schedule; EDGX U.S.
Equities Exchange Fee Schedule, Fee Codes and Associated Fees.
---------------------------------------------------------------------------

    Finally, the Exchange believes that the proposed changes are
equitable and not unfairly discriminatory as the proposed fees and
rebates would apply equally to all members that use the Exchange to
route orders using the associated routing strategy. The proposed fees
are designed to reflect the fees charged and rebates offered by certain
away trading centers that are accessed by Exchange routing strategies,
and are being made in conjunction with changes to the System routing
table designed to provide members with low cost executions for their
routable order flow. Furthermore, if members do not favor the proposed
pricing, they can send their routable orders directly to away markets
instead of using routing functionality provided by the Exchange.
Routing through the Exchange is voluntary, and the Exchange operates in
a competitive environment where market participants can readily direct
order flow to competing venues or providers of routing services if they
deem fee levels to be excessive.

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

    The Exchange 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. The
proposed routing fee changes are designed to reflect changes being made
to the System routing table used to determine where to send certain
routable orders, and generally provide better pricing to members for
orders routed to low cost protected market centers using the Exchange's
routing strategies. The Exchange operates in a highly competitive
market in which market participants can readily direct their order flow
to competing venues. In such an environment, the Exchange must
continually review, and consider adjusting, its fees and rebates to
remain competitive with other exchanges. For the reasons described
above, the Exchange believes that the proposed fee changes reflect this
competitive environment.

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

    No written comments were either solicited or received.

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

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \15\ and paragraph (f) of Rule 19b-4 \16\
thereunder. At any time within 60 days of the filing of the proposed
rule change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission will institute proceedings to
determine whether the proposed rule change should be approved or
disapproved.
---------------------------------------------------------------------------

    \15\ 15 U.S.C. 78s(b)(3)(A).
    \16\ 17 CFR 240.19b-4(f).
---------------------------------------------------------------------------

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-CboeBYX-2019-002 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-CboeBYX-2019-002. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-CboeBYX-2019-002 and should be submitted
on or before March 13, 2019.
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    \17\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019-02734 Filed 2-19-19; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 77, Number 44 (Tuesday, March 6, 2012)]
[Notices]
[Page 13318]
[FR Doc No: 2012-5342]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Project Nos. 14185-000, 14196-000]

 Lock+ Hydro Friends Fund IV, FFP Project 55, LLC; Notice
Announcing Filing Priority for Preliminary Permit Applications

    On February 28, 2012, the Commission held a drawing to determine
priority between two competing preliminary permit applications with
identical filing times. In the event that the Commission concludes that
neither of the applicants' plans is better adapted than the other to
develop, conserve, and utilize in the public interest the water
resources of the region at issue, the priority established by this
drawing will serve as the tiebreaker. Based on the drawing, the order
of priority is as follows:
    1. Lock+ Hydro Friends Fund IV: Project No. 14185-000.
    2. FFP Project 55, LLC: Project No. 14196-000.

    Dated: February 29, 2012.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2012-5342 Filed 3-5-12; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 86, Number 33 (Monday, February 22, 2021)]
[Proposed Rules]
[Pages 10493-10496]
[FR Doc No: 2021-01609]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2020-1178; Project Identifier MCAI-2020-01325-T]
RIN 2120-AA64

Airworthiness Directives; Airbus SAS Airplanes

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: The FAA proposes to supersede Airworthiness Directive (AD)
2020-09-14, which applies to certain Airbus SAS Model A350-941 and -
1041 airplanes. AD 2020-09-14 requires revising the existing airplane
flight manual (AFM) to define a liquid-prohibited zone on the flight
deck and provide procedures following liquid spillage on the center
pedestal. AD 2020-09-14 also requires installing a removable integrated
control panel (ICP) cover on the flight deck and further revising the
AFM to include instructions for ICP cover use. Since the FAA issued AD
2020-09-14, a new, water-resistant ICP has been developed. This
proposed AD would require installing a new, water-resistant ICP, which
would allow removing the ICP protective cover and the AFM revisions, as
specified in a European Union Aviation Safety Agency (EASA) AD, which
will be incorporated by reference. The FAA is proposing this AD to
address the unsafe condition on these products.

DATES: The FAA must receive comments on this proposed AD by April 8,
2021.

ADDRESSES: You may send comments, using the procedures found in 14 CFR
11.43 and 11.45, by any of the following methods:
     Federal eRulemaking Portal: Go to https://www.regulations.gov. Follow the instructions for submitting comments.
     Fax:<PHONE_NUMBER>.
     Mail: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue SE, Washington, DC 20590.
     Hand Delivery: Deliver to Mail address above between 9
a.m. and 5 p.m., Monday through Friday, except Federal holidays.
    For material that will be incorporated by reference (IBR) in this
AD, contact the EASA, Konrad-Adenauer-Ufer 3, 50668 Cologne, Germany;
telephone +49 221 8999 000; email<EMAIL_ADDRESS>internet
www.easa.europa.eu. You may find this IBR material on the EASA website
at https://ad.easa.europa.eu. You may view this IBR material at the
FAA, Airworthiness Products Section, Operational Safety Branch, 2200
South 216th St., Des Moines, WA. For information on the availability of
this material at the FAA, call<PHONE_NUMBER>. It is also available in
the AD docket on the internet at https://www.regulations.gov by
searching for and locating Docket No. FAA-2020-1178.

Examining the AD Docket

    You may examine the AD docket on the internet at https://www.regulations.gov by searching for and locating Docket No. FAA-2020-
1178; or in person at Docket Operations between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal holidays. The AD docket contains
this NPRM, any comments received, and other information. The street
address for Docket Operations is listed above. Comments will be
available in the AD docket shortly after receipt.

FOR FURTHER INFORMATION CONTACT: Kathleen Arrigotti, Aerospace
Engineer, Large Aircraft Section, International Validation Branch, FAA,
2200 South 216th St., Des Moines, WA 98198; telephone and fax 206-231-
3218.

SUPPLEMENTARY INFORMATION:

Comments Invited

    The FAA invites you to send any written relevant data, views, or
arguments about this proposal. Send your comments to an address listed
under ADDRESSES. Include ``Docket No. FAA-2020-1178; Project Identifier
MCAI-2020-01325-T'' at the beginning of your comments. The most helpful
comments reference a specific portion of the proposal, explain the
reason for any recommended change, and include supporting data. The FAA
will consider all comments received by the closing date and may amend
the proposal because of those comments.
    Except for Confidential Business Information (CBI) as described in
the following paragraph, and other information as described in 14 CFR
11.35, the FAA will post all comments

received, without change, to https://www.regulations.gov, including any
personal information you provide. The agency will also post a report
summarizing each substantive verbal contact received about this
proposed AD.

Confidential Business Information

    CBI is commercial or financial information that is both customarily
and actually treated as private by its owner. Under the Freedom of
Information Act (FOIA) (5 U.S.C. 552), CBI is exempt from public
disclosure. If your comments responsive to this NPRM contain commercial
or financial information that is customarily treated as private, that
you actually treat as private, and that is relevant or responsive to
this NPRM, it is important that you clearly designate the submitted
comments as CBI. Please mark each page of your submission containing
CBI as ``PROPIN.'' The FAA will treat such marked submissions as
confidential under the FOIA, and they will not be placed in the public
docket of this NPRM. Submissions containing CBI should be sent to
Kathleen Arrigotti, Aerospace Engineer, Large Aircraft Section,
International Validation Branch, FAA, 2200 South 216th St., Des Moines,
WA 98198; telephone and fax<PHONE_NUMBER>. Any commentary that the FAA
receives which is not specifically designated as CBI will be placed in
the public docket for this rulemaking.

Discussion

    The FAA issued AD 2020-09-14, Amendment 39-19910 (85 FR 30601, May
20, 2020) (AD 2020-09-14), which applies to certain Airbus SAS Model
A350-941 and -1041 airplanes. AD 2020-09-14 requires revising the
existing AFM to define a liquid-prohibited zone on the flight deck and
provide procedures following liquid spillage on the center pedestal. AD
2020-09-14 also requires installing a removable ICP cover on the flight
deck and further revising the AFM to include instructions for ICP cover
use. AD 2020-09-14 superseded AD 2020-03-12, Amendment 39-19837 (85 FR
7863, February 12, 2020), which applied to all Airbus SAS Model A350-
941 and -1041 airplanes. Both ADs required revising the existing AFM to
define a liquid-prohibited zone on the flight deck and provide
procedures following liquid spillage on the center pedestal.
    The FAA issued AD 2020-09-14 to address the potential for dual-
engine in-flight shutdown (IFSD), possibly resulting in a forced
landing with consequent damage to the airplane and injury to occupants.

Actions Since AD 2020-09-14 Was Issued

    The preamble to AD 2020-09-14 explains that the FAA considers the
requirements ``interim action'' and was considering further rulemaking.
The FAA has now determined that further rulemaking is indeed necessary,
and this proposed AD follows from that determination. Since the FAA
issued AD 2020-09-14, a new, water-resistant ICP has been developed by
the manufacturer to address the identified unsafe condition.
    The EASA, which is the Technical Agent for the Member States of the
European Union, has issued EASA AD 2020-0203, dated September 23, 2020
(EASA AD 2020-0203) (also referred to as the Mandatory Continuing
Airworthiness Information, or the MCAI), to correct an unsafe condition
for certain Airbus SAS Model A350-941 and -1041 airplanes. EASA AD
2020-0203 superseded EASA AD 2020-0090 (which corresponds to FAA AD
2020-09-14).
    This proposed AD was prompted by the development of a new, water-
resistant ICP to prevent damage from inadvertent liquid spillage on the
center pedestal. The FAA is proposing this AD to address the potential
for dual-engine IFSD, possibly resulting in a forced landing with
consequent damage to the airplane and injury to occupants. See the MCAI
for additional background information.

Explanation of Retained Requirements

    Although this proposed AD does not explicitly restate the
requirements of AD 2020-09-14, this proposed AD would retain all
requirements of AD 2020-09-14 and revise the applicability. Those
requirements are referenced in EASA AD 2020-0203, which, in turn, is
referenced in paragraph (g) of this proposed AD.

Related Service Information Under 1 CFR Part 51

    EASA AD 2020-0203 describes procedures for revising the AFM to
define a liquid-prohibited zone on the flight deck and provide
procedures following liquid spillage on the center pedestal, installing
an ICP cover on the flight deck, and further revising the AFM to
include instructions for ICP cover use. EASA AD 2020-0203 also
describes procedures for installing a new, water-resistant ICP;
removing the ICP protective cover; and removing the AFM revisions. This
material is reasonably available because the interested parties have
access to it through their normal course of business or by the means
identified in the ADDRESSES section.

FAA's Determination and Requirements of This Proposed AD

    This product has been approved by the aviation authority of another
country, and is approved for operation in the United States. Pursuant
to the FAA's bilateral agreement with the State of Design Authority,
the FAA has been notified of the unsafe condition described in the MCAI
referenced above. The FAA is proposing this AD because the FAA
evaluated all pertinent information and determined an unsafe condition
exists and is likely to exist or develop on other products of the same
type design.

Proposed AD Requirements

    This proposed AD would require accomplishing the actions specified
in EASA AD 2020-0203 described previously, as incorporated by
reference, except for any differences identified as exceptions in the
regulatory text of this AD. The FAA also proposes to revise the
applicability to exclude only airplanes on which Mod 116038 was
installed in production. Additionally, for airplanes modified per Mod
116010, which introduced the removable protective ICP cover, certain
AFM requirements specified in EASA AD 2020-0203 would not be required
by this proposed AD.

Explanation of Required Compliance Information

    In the FAA's ongoing efforts to improve the efficiency of the AD
process, the FAA initially worked with Airbus and EASA to develop a
process to use certain EASA ADs as the primary source of information
for compliance with requirements for corresponding FAA ADs. The FAA has
since coordinated with other manufacturers and civil aviation
authorities (CAAs) to use this process. As a result, EASA AD 2020-0203
will be incorporated by reference in the FAA final rule. This proposed
AD would, therefore, require compliance with EASA AD 2020-0203 in its
entirety, through that incorporation, except for any differences
identified as exceptions in the regulatory text of this proposed AD.
Using common terms that are the same as the heading of a particular
section in the EASA AD does not mean that operators need comply only
with that section. For example, where the AD requirement refers to
``all required actions and compliance times,'' compliance with this AD
requirement is

not limited to the section titled ``Required Action(s) and Compliance
Time(s)'' in the EASA AD. Service information specified in EASA AD
2020-0203 that is required for compliance with EASA AD 2020-0203 will
be available on the internet at https://www.regulations.gov by
searching for and locating Docket No. FAA-2020-1178 after the FAA final
rule is published.

Costs of Compliance

    The FAA estimates that this proposed AD affects 15 airplanes of
U.S. registry. The FAA estimates the following costs to comply with
this proposed AD:

                                     Estimated Costs for Required Actions(*)
----------------------------------------------------------------------------------------------------------------
                                                                                Cost on U.S.
            Action                  Labor cost       Parts cost       Cost per product           operators
----------------------------------------------------------------------------------------------------------------
Retained AFM revision from AD   1 work-hour x $85              $0  $85...................  $1,105.
 2020-09-14.                     per hour = $85.
Retained installation from AD   2 work-hours x                (*)  $170..................  $2,210.
 2020-09-14.                     $85 per hour =
                                 $170.
New proposed actions..........  Up to 42 work-                (*)  Up to $3,570..........  Up to $53,550.
                                 hours x $85 per
                                 hour = Up to
                                 $3,570.
----------------------------------------------------------------------------------------------------------------
* The FAA has received no definitive data regarding cost estimates for these parts.

    The FAA has received no definitive data on which to base the cost
estimates for the on-condition actions specified in this proposed AD.
    According to the manufacturer, some or all of the costs of this
proposed AD may be covered under warranty, thereby reducing the cost
impact on affected individuals. The FAA does not control warranty
coverage for affected individuals. As a result, the FAA has included
all known costs in the cost estimate.

Authority for This Rulemaking

    Title 49 of the United States Code specifies the FAA's authority to
issue rules on aviation safety. Subtitle I, section 106, describes the
authority of the FAA Administrator. Subtitle VII: Aviation Programs,
describes in more detail the scope of the Agency's authority.
    The FAA is issuing this rulemaking under the authority described in
Subtitle VII, Part A, Subpart III, Section 44701: General requirements.
Under that section, Congress charges the FAA with promoting safe flight
of civil aircraft in air commerce by prescribing regulations for
practices, methods, and procedures the Administrator finds necessary
for safety in air commerce. This regulation is within the scope of that
authority because it addresses an unsafe condition that is likely to
exist or develop on products identified in this rulemaking action.

Regulatory Findings

    The FAA determined that this proposed AD would not have federalism
implications under Executive Order 13132. This proposed AD would not
have a substantial direct effect on the States, on the relationship
between the national Government and the States, or on the distribution
of power and responsibilities among the various levels of government.
    For the reasons discussed above, I certify this proposed
regulation:
    (1) Is not a ``significant regulatory action'' under Executive
Order 12866,
    (2) Would not affect intrastate aviation in Alaska, and
    (3) Would not have a significant economic impact, positive or
negative, on a substantial number of small entities under the criteria
of the Regulatory Flexibility Act.

List of Subjects in 14 CFR Part 39

    Air transportation, Aircraft, Aviation safety, Incorporation by
reference, Safety.

The Proposed Amendment

    Accordingly, under the authority delegated to me by the
Administrator, the FAA proposes to amend 14 CFR part 39 as follows:

PART 39--AIRWORTHINESS DIRECTIVES

0
1. The authority citation for part 39 continues to read as follows:

    Authority: 49 U.S.C. 106(g), 40113, 44701.

Sec.  39.13  [Amended]

0
2. The FAA amends Sec.  39.13 by:
0
a. Removing Airworthiness Directive 2020-09-14, Amendment 39-19910 (85
FR 30601, May 20, 2020); and
0
b. Adding the following new AD:

Airbus SAS: Docket No. FAA-2020-1178; Project Identifier MCAI-2020-
01325-T.

(a) Comments Due Date

    The FAA must receive comments for this airworthiness directive
(AD) action by April 8, 2021.

(b) Affected ADs

    This AD replaces AD 2020-09-14, Amendment 39-19910 (85 FR 30601,
May 20, 2020) (AD 2020-09-14).

(c) Applicability

    This AD applies to Airbus SAS Model A350-941 and -1041
airplanes, certificated in any category, as identified in European
Union Aviation Safety Agency (EASA) AD 2020-0203, dated September
23, 2020 (EASA AD 2020-0203).

(d) Subject

    Air Transport Association (ATA) of America Code 31, Instruments.

(e) Reason

    This AD was prompted by two reports of abnormal operation of the
components of the ENG START panel or Electronic Centralized Aircraft
Monitoring (ECAM) Control Panel (ECP) due to liquid spillage in the
system, and the subsequent uncommanded engine in-flight shutdown
(IFSD) of one engine in each case. This AD was also prompted by the
development of a new, water-resistant integrated control panel (ICP)
that will address this unsafe condition. The FAA is issuing this AD
to address the potential for dual-engine IFSD, possibly resulting in
a forced landing with consequent damage to the airplane and injury
to occupants.

(f) Compliance

    Comply with this AD within the compliance times specified,
unless already done.

(g) Requirements

    Except as specified in paragraph (h) of this AD: Comply with all
required actions and compliance times specified in, and in
accordance with, EASA AD 2020-0203.

(h) Exceptions to EASA AD 2020-0203

    (1) Where EASA AD 2020-0203 refers to its effective date, this
AD requires using the effective date of this AD.
    (2) Where EASA AD 2020-0203 refers to the effective date of EASA
AD 2020-0020E, this AD requires using February 14, 2020 (the
effective date of AD 2020-03-12).
    (3) Where EASA AD 2020-0203 refers to the effective date of EASA
AD 2020-0090, this AD requires using June 4, 2020 (the effective
date of AD 2020-09-14).
    (4) Where paragraph (7) of EASA AD 2020-0203 specifies removing
the AFM [airplane flight manual] changes ``as required by paragraph
(2) or (4) of [the MCAI], as applicable,'' this AD requires removing
the AFM changes required by paragraph (1), (2), (4), or (5), as
applicable, from the AFM.

    (5) For airplanes with Mod 116010: This AD does not require the
actions specified in paragraph (1), (3), and (4) of EASA AD 2020-
0203, as specified in paragraph (g) of this AD.
    (6) ``Note 1'' of EASA AD 2020-0203 does not apply to this AD.
However, after the actions required by EASA AD 2020-0203, paragraphs
(3) to (5), as required by paragraph (g) of this AD, have been
accomplished on an airplane, that airplane may be operated with a
damaged or missing ICP removable cover, provided provisions that
address the ICP removable cover are included in the operator's
approved minimum equipment list (MEL). After the actions required by
EASA AD 2020-0203, paragraph (6), as required by paragraph (g) of
this AD, have been accomplished on an airplane, that airplane may be
operated without an ICP removable cover, provided provisions that
address the ICP removable cover are removed from the operator's
approved MEL.
    (7) The ``Remarks'' section of EASA AD 2020-0203 does not apply
to this AD.

(i) Special Flight Permit

    Special flight permits may be issued in accordance with 14 CFR
21.197 and 21.199 to operate the airplane to a location where the
actions specified in this AD can be accomplished (if the operator
elects to do so), provided a removable ICP cover is installed on the
flight deck.

(j) Other FAA AD Provisions

    The following provisions also apply to this AD:
    (1) Alternative Methods of Compliance (AMOCs): The Manager,
Large Aircraft Section, International Validation Branch, FAA, has
the authority to approve AMOCs for this AD, if requested using the
procedures found in 14 CFR 39.19. In accordance with 14 CFR 39.19,
send your request to your principal inspector or responsible Flight
Standards Office, as appropriate. If sending information directly to
the Large Aircraft Section, International Validation Branch, send it
to the attention of the person identified in paragraph (k)(2) of
this AD. Information may be emailed to<EMAIL_ADDRESS>
Before using any approved AMOC, notify your appropriate principal
inspector, or lacking a principal inspector, the manager of the
responsible Flight Standards Office.
    (2) Contacting the Manufacturer: For any requirement in this AD
to obtain instructions from a manufacturer, the instructions must be
accomplished using a method approved by the Manager, Large Aircraft
Section, International Validation Branch, FAA; or EASA; or Airbus's
EASA Design Organization Approval (DOA). If approved by the DOA, the
approval must include the DOA-authorized signature.
    (3) Required for Compliance (RC): For any service information
referenced in EASA AD 2020-0203 that contains RC procedures and
tests: RC procedures and tests must be done to comply with this AD;
any procedures or tests that are not identified as RC are
recommended. Those procedures and tests that are not identified as
RC may be deviated from using accepted methods in accordance with
the operator's maintenance or inspection program without obtaining
approval of an AMOC, provided the procedures and tests identified as
RC can be done and the airplane can be put back in an airworthy
condition. Any substitutions or changes to procedures or tests
identified as RC require approval of an AMOC.

(k) Related Information

    (1) For information about EASA AD 2020-0203, contact the EASA,
Konrad-Adenauer-Ufer 3, 50668 Cologne, Germany; telephone +49 221
8999 000; email<EMAIL_ADDRESS>internet www.easa.europa.eu. You
may find this EASA AD on the EASA website at https://ad.easa.europa.eu. You may view this material at the FAA,
Airworthiness Products Section, Operational Safety Branch, 2200
South 216th St., Des Moines, WA. For information on the availability
of this material at the FAA, call<PHONE_NUMBER>. This material may be
found in the AD docket on the internet at https://www.regulations.gov by searching for and locating Docket No. FAA-
2020-1178.
    (2) For more information about this AD, contact Kathleen
Arrigotti, Aerospace Engineer, Large Aircraft Section, International
Validation Branch, FAA, 2200 South 216th St., Des Moines, WA 98198;
telephone and fax<PHONE_NUMBER>.

    Issued on January 19, 2021.
Lance T. Gant,
Director, Compliance & Airworthiness Division, Aircraft Certification
Service.
[FR Doc. 2021-01609 Filed 2-19-21; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register Volume 85, Number 121 (Tuesday, June 23, 2020)]
[Notices]
[Pages 37722-37726]
[FR Doc No: 2020-13431]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-89080; File No. SR-CboeEDGX-2020-028]

Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change To
Amend Rule 21.5 To Conform the Rule to Section 3.1 of the Plan for the
Purpose of Developing and Implementing Procedures Designed To
Facilitate the Listing and Trading of Standardized Options and Add New
Rule 21.5(e)

June 17, 2020.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on June 11, 2020, Cboe EDGX Exchange, Inc. (the ``Exchange'' or
``EDGX Options'') filed with the Securities and Exchange Commission
(the ``Commission'') the proposed rule change as described in Items I
and II, below, which Items have been prepared by the Exchange. The
Exchange filed the proposal as a ``non-controversial'' proposed rule
change pursuant to Section 19(b)(3)(A)(iii) of the Act \3\ and Rule
19b-4(f)(6) thereunder.\4\ The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

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

    Cboe EDGX Exchange, Inc. (the ``Exchange'' or ``EDGX Options'')
proposes to amend Rule 21.5 to conform the rule to Section 3.1 of the
Plan for the Purpose of Developing and Implementing Procedures Designed
to Facilitate the Listing and Trading of Standardized Options (the
``OLPP'') and add new Rule 21.5(e). The text of the proposed rule
change is provided in Exhibit 5.
    The text of the proposed rule change is also available on the
Exchange's website (http://markets.cboe.com/us/options/regulation/rule_filings/edgx/), at the Exchange's Office of the Secretary, and at
the Commission's Public Reference Room.

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

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

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

1. Purpose
    The purpose of this rule change is to amend Rule 21.5 (Minimum
Increments) to align the rule with the recently approved amendment to
the OLPP.
Background
    On January 23, 2007, the Commission approved on a limited basis a
Penny Pilot in option classes in certain issues (``Penny Pilot''). The
Penny Pilot was designed to determine whether investors would benefit
from options being quoted in penny increments, and

in which classes the benefits were most significant. The Penny Pilot
was expanded and extended numerous times over the last 13 years.\5\ In
each instance, these approvals relied upon the consideration of data
periodically provided by the Exchanges that analyzed how quoting
options in penny increments affects spreads, liquidity, quote traffic,
and volume. Today, the Penny Pilot includes 363 option classes, which
are among the most actively traded, multiply listed option classes. The
Penny Pilot is scheduled to expire by its own terms on June 30,
2020.\6\
---------------------------------------------------------------------------

    \5\ The Exchange notes that the rules of EDGX Options, including
rules applicable to EDGX Options' participation in the Penny Pilot,
were approved on August 7, 2015. See Securities Exchange Act Release
No. 75650 (August 7, 2015), 80 FR 48600 (August 13, 2015) (SR-EDGX-
2015-18). The rules applicable to EDGX Options' participation in the
Penny Pilot have been expanded and extended accordingly numerous
times since the Exchange commenced operations. See Securities
Exchange Act Release Nos. 78052 (June 13, 2016), 81 FR 39731 (June
17, 2016) (SR-BatsEDGX-2016-22); 79526 (December 12, 2016), 81
FR91235 (December 16, 2016) (SR-BatsEDGX-2016-71); 80907 (June 12,
2017), 82 FR 27741 (June 16, 2017) (SR-BatsEDGX-2017-28); 82380
(December 21, 2017), 82 FR 61611 (December 28, 2017) (SR-CboeEDGX-
2017-007); 83566 (June 29, 2018), 83 FR 31576 (July 6, 2018) (SR-
CboeEDGX-2018-021); 84946 (December 21, 2018), 83 FR 67757 (December
31, 2018) (SR-CboeEDGX-2018-061); 86079 (June 10, 2019), 84 FR 27810
(June 14, 2019) (SR-CboeEDGX-2019-036); and 87741 (December 13,
2019), 84 FR 69805 (December 19, 2019) (SR-CboeEDGX-2019-074).
    \6\ See Securities Exchange Act Release No. 87741 (December 13,
2019), 84 FR 69805 (December 19, 2019) (SR-CboeEDGX-2019-074).
---------------------------------------------------------------------------

    In light of the imminent expiration of the Penny Pilot on June 30,
2020, the Exchange, together with other participating exchanges, filed,
on July 18, 2019 a proposal to amend the OLPP.\7\ On April 1, 2020 the
Commission approved the amendment to the OLPP to make permanent the
Pilot Program (the ``OLPP Program'').\8\
---------------------------------------------------------------------------

    \7\ See Securities Exchange Act Release No. 87681 (December 9,
2019), 84 FR 68960 (December 17, 2019) (``Notice'').
    \8\ See Securities Exchange Act Release No. 88532 (April 1,
2020), 85 FR 19545 (April 7, 2020) (File No. 4-443) (``Approval
Order'').
---------------------------------------------------------------------------

    The OLPP Program replaces the Penny Pilot by instituting a
permanent program that would permit quoting in penny increments for
certain option classes. Under the terms of the OLPP Program, designated
option classes would continue to be quoted in $0.01 and $0.05
increments according to the same parameters for the Penny Pilot. In
addition, the OLPP Program would: (i) Establish an annual review
process to add option classes to, or to remove option classes from, the
OLPP Program; (ii) to allow an option class to be added to the OLPP
Program if it is a newly listed option class and it meets certain
criteria; (iii) to allow an option class to be added to the OLPP
Program if it is an option class that has seen a significant growth in
activity; (iv) to provide that if a corporate action involves one or
more option classes in the OLPP Program, all adjusted and unadjusted
series and classes emerging as a result of the corporate action will be
included in the OLPP Program; and (v) to provide that any series in an
option class participating in the OLPP Program that have been delisted,
or are identified by OCC as ineligible for opening Customer
transactions, will continue to trade pursuant to the OLPP Program until
they expire.
    To conform its Rules to the OLPP Program, the Exchange proposes to
delete Interpretation and Policy .01 to Rule 21.5 (the ``Penny Pilot
Rule'') and replace it with new Rule 21.5(e) (Requirements for Penny
Interval Program), which is described below, and to replace references
to ``Penny Pilot'' in the Exchange rules with ``Penny Interval
Program.'' The Exchange also proposes to delete the superfluous
operational language within Rule 21.5 regarding the a change to the
minimum increment that may be established by the Board and designated
as a stated policy, practice, or interpretation within the meaning of
the Act and the process for modifying trading differential by rule
filing because such meaning and requirement remains the case today, as
the Exchange may determine to establish a change to the Rules and the
Exchange must submit proposed rule changes--including for Rule 21.5--to
the Commission.\9\
---------------------------------------------------------------------------

    \9\ See Rule 21.5(a), specifically, the current language which
provides that: ``The Board may establish minimum quoting increments
for options contracts traded on EDGX Options. Such minimum
increments established by the Board will be designated as a stated
policy, practice, or interpretation with respect to the
administration of this Rule within the meaning of Section 19 of the
Exchange Act and will be filed with the SEC as a rule change for
effectiveness upon filing. Until such time as the Board makes a
change in the increments, the following principles shall apply''.
The Exchange notes that this proposed change is also consistent with
the corresponding minimum increment rules of its affiliated options
exchanges, Cboe Options Exchange, Inc. (``Cboe Options'') and Cboe
C2 Exchange, Inc. (``C2''). See Cboe Options Rule 5.4 and C2 Rule
6.4; see also Securities Exchange Act Release Nos. 84470 (October
23, 2018), 83 FR 54395 (October 29, 2018) (SR-CBOE-2018-066); and
83214 (May 11, 2018), 83 FR 22796 (May 16, 2018) (SR-C2-2018-005),
which more recently updated Cboe Options and C2 minimum increments
rules, respectively, in the same manner as proposed in connection
with language in the Cboe Options and C2 rules that prior referred
to Board decisions to modify minimum increments. The decision to
change the minimum increments relate to Exchange trading and
operations, and thus are made by Exchange management, rather than
the Board, which generally is not involved in determinations related
to day-to-day operations of the Exchange.
---------------------------------------------------------------------------

    Finally, the Exchange notes that this proposal is based on and
substantially identical to a rule filing recently submitted by NYSE
Arca, Inc.\10\
---------------------------------------------------------------------------

    \10\ See Securities Exchange Act Release No. 88943 (May 26,
2020), 85 FR 33255 (June 1, 2020) (SR-NYSEArca-2020-50).
---------------------------------------------------------------------------

Penny Interval Program
    The Exchange proposes to codify the OLPP Program in new paragraph
(e) to Rule 21.5 (Requirements for Penny Interval Program) (the ``Penny
Program''), which will replace the Penny Pilot Rule and permanently
permit the Exchange to quote certain option classes in minimum
increments of one cents ($0.01) and five cents ($0.05) (``penny
increments''). The penny increments that currently apply under the
Penny Pilot will continue to apply for option classes included in the
Penny Program. Specifically, (i) the minimum quoting increment for all
series in the QQQ, SPY, and IWM would continue to be $0.01, regardless
of price; \11\ (ii) all series of an option class included in the Penny
Program with a price of less than $3.00 would be quoted in $0.01
increments; and (iii) all series of an option class included in the
Penny Program with a price of $3.00 or higher would be quoted in $0.05
increments.
---------------------------------------------------------------------------

    \11\ See Rule 21.5(a).
---------------------------------------------------------------------------

    The Penny Program would initially apply to the 363 most actively
traded multiply listed option classes, based on National Cleared Volume
at The Options Clearing Corporation (``OCC'') in the six full calendar
months ending in the month of approval (i.e., November 2019-April 2020)
that currently quote in penny increments, or overlie securities priced
below $200, or any index at an index level below $200. Eligibility for
inclusion in the Penny Program will be determined at the close of
trading on the monthly Expiration Friday of the second full month
following April 1, 2020 (i.e., June 19, 2020).
    Once in the Penny Program, an option class will remain included
until it is no longer among the 425 most actively traded option classes
at the time the annual review is conducted (described below), at which
point it will be removed from the Penny Program. As described in more
detail below, the removed class will be replaced by the next most
actively traded multiply listed option class overlying securities
priced below $200 per share, or any index at an index level below $200,
and not yet in the Penny Program. Advanced notice regarding the option
classes

included, added, or removed from the Penny Program will be provided to
the Exchange's Members pursuant to Rule 16.3 \12\ and published by the
Exchange on its website.
---------------------------------------------------------------------------

    \12\ Rule 16.3 provides that the Exchange announces to Options
Members all determinations it makes pursuant to the Rules via: (1)
Specifications, Notices, or Regulatory Circulars with appropriate
advanced notice, which will be posted on the Exchange's website, or
as otherwise provided in the Rules; (2) electronic message; or (3)
other communication method as provided in the Rules.
---------------------------------------------------------------------------

Annual Review
    The Penny Program would include an annual review process that
applies objective criteria to determine option classes to be added to,
or removed from, the Penny Program. Specifically, on an annual basis
beginning in December 2020 and occurring ever December thereafter, the
Exchange will review and rank all multiply listed option classes based
on National Cleared Volume at OCC for the six full calendar months from
June 1st through November 30th for determination of the most actively
traded option classes. Any option classes not yet in the Penny Program
may be added to the Penny Program if the class is among the 300 most
actively traded multiply listed option classes and priced below $200
per share or any index at an index level below $200.
    Following the annual review, option classes to be added to the
Penny Program would begin quoting in penny increments (i.e., $0.01 if
trading at less than $3; and $0.05 if trading at $3 and above) on the
first trading day of January.\13\ In addition, following the annual
review, any option class in the Penny Program that falls outside of the
425 most actively traded option classes would be removed from the Penny
Program. After the annual review, option classes that are removed from
the Penny Program will be subject to the minimum trading increments set
forth in Rule 21.5, effective on the first trading day of April.
---------------------------------------------------------------------------

    \13\ See supra note 11. (providing that the minimum quoting
increment for all series in the QQQ, SPY, and IWM would continue to
be $0.01, regardless of price).
---------------------------------------------------------------------------

Changes to the Composition of the Penny Program Outside of the Annual
Review
Newly Listed Option Classes and Option Classes With Significant Growth
in Activity
    The Penny Program would specify a process and parameters for
including option classes in the Program outside the annual review
process in two circumstances. These provisions are designed to provide
objective criteria to add to the Penny Program new option classes in
issues with the most demonstrated trading interest from market
participants and investors on an expedited basis prior to the annual
review, with the benefit that market participants and investors will
then be able to trade these new option classes based upon quotes
expressed in finer trading increments.
    First, the Penny Program provides for certain newly listed option
classes to be added to the Penny Program outside of the annual review
process, provided that (i) the class is among the 300 most actively
traded, multiply listed option classes, as ranked by National Cleared
Volume at OCC, in its first full calendar month of trading; and (ii)
the underlying security is priced below $200 or the underlying index is
at an index level below $200. Such newly listed option classes added to
the Penny Program pursuant to this process would remain in the Penny
Program for one full calendar year and then would be subject to the
annual review process.
    Second, the Penny Program would allow an option class to be added
to the Penny Program outside of the annual review process if it is an
option class that meets certain specific criteria. Specifically, new
option classes may be added to the Penny Program if: (i) The option
class is among the 75 most actively traded multiply listed option
classes, as ranked by National Cleared Volume at OCC, in the prior six
full calendar months of trading and (ii) the underlying security is
priced below $200 or the underlying index is at an index level below
$200. Any option class added under this provision will be added on the
first trading day of the second full month after it qualifies and will
remain in the Penny Program for the rest of the calendar year, after
which it will be subject to the annual review process.
Corporate Actions
    The Penny Program would also specify a process to address option
classes in the Penny Program that undergo a corporate action and is
designed to ensure continuous liquidity in the affected option classes.
Specifically, if a corporate action involves one or more option classes
in the Penny Program, all adjusted and unadjusted series of an option
class would continue to be included in the Penny Program.\14\
Furthermore, neither the trading volume threshold, nor the initial
price test would apply to option classes added to the Penny Program as
a result of the corporate action. Finally, the newly added adjusted and
unadjusted series of the option class would remain in the Penny Program
for one full calendar year and then would become subject to the annual
review process.
---------------------------------------------------------------------------

    \14\ For example, if Company A acquires Company B and Company A
is not in the Penny Program but Company B is in the Penny Program,
once the merger is consummated and an options contract adjustment is
effective, then Company A would be added to the Penny Program and
remain in the Penny Program for one calendar year.
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Delisted or Ineligible Option Classes
    Finally, the Penny Program would provide a mechanism to address
option classes that have been delisted or those that are no longer
eligible for listing. Specifically, any series in an option class
participating in the Penny Program in which the underlying has been
delisted, or is identified by OCC as ineligible for opening customer
transactions, would continue to quote pursuant to the terms of the
Penny Program until all options series have expired.
Technical Changes
    The Exchange proposes to replace reference to the Penny Pilot with
reference to the Penny Interval Program in Rule 21.5(a), Interpretation
and Policy .02 to Rule 21.5,\15\ and Interpretation and Policy .07(d)
to Rule 19.6. The Exchange believes these technical changes would add
clarity, transparency and internal consistency to Exchange rules making
them easier to navigate.
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    \15\ The Exchange also updates this Interpretation and Policy
from .02 to .01 in light of the proposed rule change to remove the
Penny Pilot Rule in current Interpretation and Policy .01, and
updates the reference to Interpretation and Policy .01 (Penny Pilot
Rule) to proposed Rule 21.5(e) (Requirements for Penny Interval
Program).
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Implementation
    The Exchange proposes to implement the Penny Program on July 1,
2020, which is the first trading day of the third month following the
Approval Order issued on April 1, 2020--i.e., July 1, 2020.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations thereunder applicable to the Exchange and, in particular,
the requirements of Section 6(b) of the Act.\16\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \17\ requirements that the rules of an exchange be
designed to prevent

fraudulent and manipulative acts and practices, to promote just and
equitable principles of trade, to foster cooperation and coordination
with persons engaged in regulating, clearing, settling, processing
information with respect to, and facilitating transactions in
securities, 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. Additionally, the Exchange
believes the proposed rule change is consistent with the Section
6(b)(5) \18\ requirement that the rules of an exchange not be designed
to permit unfair discrimination between customers, issuers, brokers, or
dealers.
---------------------------------------------------------------------------

    \16\ 15 U.S.C. 78f(b).
    \17\ 15 U.S.C. 78f(b)(5).
    \18\ Id.
---------------------------------------------------------------------------

    In particular, the proposed rule change, which conforms the
Exchange rules to the recently adopted OLPP Program, allows the
Exchange to provide market participants with a permanent Penny Program
for quoting options in penny increments, which maximizes the benefit of
quoting in a finer quoting increment to investors while minimizing the
burden that a finer quoting increment places on quote traffic.
    Accordingly, the Exchange believes that the proposal is consistent
with the Act because, in conforming the Exchange rules to the OLPP
Program, the Penny Program would employ processes, based upon objective
criteria, that would rebalance the composition of the Penny Program,
thereby helping to ensure that the most actively traded option classes
are included in the Penny Program, which helps facilitate the
maintenance of a fair and orderly market.
Technical Changes
    The Exchange notes that the proposed change to Rule 21.5(a),
Interpretation and Policy .01 to Rule 21.5, and Interpretation and
Policy .07(d) to Rule 19.6 to replace references to the Penny Pilot
with references to the Penny Interval Program would provide clarity and
transparency to the Exchange rules and would promote just and equitable
principles of trade and remove impediments to, and perfect the
mechanism of, a free and open market and a national market system. The
proposed rule changes would also provide internal consistency within
Exchange rules and operate to protect investors and the investing
public by making the Exchange rules easier to navigate and comprehend.

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

    The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The proposed Penny Program,
which modifies the exchange's rules to align them with the Commission
approved OLPP Program, is not designed to be a competitive filing nor
does it impose an undue burden on intermarket competition as the
Exchange anticipates that the options exchanges will adopt
substantially identical rules. Moreover, the Exchange believes that by
conforming Exchange rules to the OLPP Program, the Exchange would
promote regulatory clarity and consistency, thereby reducing burdens on
the marketplace and facilitating investor protection. To the extent
that there is a competitive burden on those option classes that do not
qualify for the Penny Program, the Exchange believes that it is
appropriate because the proposal should benefit all market participants
and investors by maximizing the benefit of a finer quoting increment in
those option classes with the most trading interest while minimizing
the burden of greater quote traffic in option classes with less trading
interest. The Exchange believes that adopting rules, which have been
adopted by another options exchange \19\ and, as the Exchange
anticipates, will likewise be adopted by all option exchanges that are
participants in the OLPP, would allow for continued competition between
Exchange market participants trading similar products as their
counterparts on other exchanges, while at the same time allowing the
Exchange to continue to compete for order flow with other exchanges.
---------------------------------------------------------------------------

    \19\ See supra note 10.
---------------------------------------------------------------------------

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

    The Exchange neither solicited nor received comments on the
proposed rule change.

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

    Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days after the date of the filing, or such
shorter time as the Commission may designate, it has become effective
pursuant to 19(b)(3)(A) of the Act \20\ and Rule 19b-4(f)(6) \21\
thereunder. The Exchange has proposed to implement the Penny Program on
July 1, 2020 and has asked the Commission to waive the 30-day operative
delay for this filing. The Commission believes that waiving the 30-day
operative delay is consistent with the protection of investors and the
public interest because it will allow the Exchange to modify its rules
to conform to the OLPP Program and implement the Penny Program on July
1, 2020, consistent with the Commission's approval of the OLPP
Amendment. Accordingly, the Commission designates the proposed rule
change as operative upon filing with the Commission.\22\
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    \20\ 15 U.S.C. 78s(b)(3)(A).
    \21\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
    \22\ For purposes only of waiving the operative delay for this
proposal, the Commission has considered the proposed rule's impact
on efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. 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-CboeEDGX-2020-028 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-CboeEDGX-2020-028. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
    Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-CboeEDGX-2020-028 and should be
submitted on or before July 14, 2020.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\23\
---------------------------------------------------------------------------

    \23\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-13431 Filed 6-22-20; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 85, Number 52 (Tuesday, March 17, 2020)]
[Notices]
[Page 15164]
[FR Doc No: 2020-05392]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Project No. 6731-015]

Coneross Power Corporation; Notice Soliciting Scoping Comments

    Take notice that the following hydroelectric application has been
filed with the Commission and is available for public inspection.
    a. Type of Application: Subsequent Minor License.
    b. Project No.: 6731-015.
    c. Date filed: February 28, 2019.
    d. Applicant: Coneross Power Corporation.
    e. Name of Project: Coneross Hydroelectric Project.
    f. Location: The Coneross Hydroelectric Project is located on
Coneross Creek in Oconee County, South Carolina. The project does not
occupy Federal lands.
    g. Filed Pursuant to: Federal Power Act 16 U.S.C. 791 (a)-825(r).
    h. Applicant Contact: Mr. Kevin Webb, Hydro Licensing Manager, Enel
Green Power North America, Inc., 100 Brickstone Square, Suite 300,
Andover, MA 01810,<PHONE_NUMBER>.
    i. FERC Contact: Jeanne Edwards,<PHONE_NUMBER>, or
<EMAIL_ADDRESS>    j. Deadline for filing scoping comments: April 9, 2020.
    The Commission strongly encourages electronic filing. Please file
scoping comments using the Commission's eFiling system at http://www.ferc.gov/docs-filing/efiling.asp. Commenters can submit brief
comments up to 6,000 characters, without prior registration, using the
eComment system at http://www.ferc.gov/docs-filing/ecomment.asp. You
must include your name and contact information at the end of your
comments. For assistance, please contact FERC Online Support at
<EMAIL_ADDRESS>(866) 208-3676 (toll free), or (202) 502-
8659 (TTY). In lieu of electronic filing, please send a paper copy to:
Secretary, Federal Energy Regulatory Commission, 888 First Street, NE,
Washington, DC 20426. The first page of any filing should include
docket number P-6731-015.
    The Commission's Rules of Practice require all intervenors filing
documents with the Commission to serve a copy of that document on each
person on the official service list for the project. Further, if an
intervenor files comments or documents with the Commission relating to
the merits of an issue that may affect the responsibilities of a
particular resource agency, they must also serve a copy of the document
on that resource agency.
    k. This application is not ready for environmental analysis at this
time.
    l. The existing Coneross Project consists of: (1) An existing 288-
foot-long, 25-foot-high concrete dam with a 123-foot-long, 20-foot-wide
concrete spillway with 1.5-foot-high flashboards; (2) an existing nine-
acre reservoir having a gross storage capacity of 13.5 acre-feet at
elevation 746.5 feet mean sea level; (3); a 780-foot-long, 8-foot in
diameter concrete penstock with an 8-foot-wide and 8-foot-high intake
gate and a 25-foot-long, 19-foot-deep trash rack structure with 2.0-
inch clear bar spacing; (4) a powerhouse containing three generating
units, two Kaplan hydro turbines and one Francis hydro turbine for a
total installed capacity of 889 kilowatts; (5) a 95-foot-long tailrace;
(6) a 1,300-foot-long bypassed reach between the dam and the tailrace;
(7); an existing 93-foot-long, 12.47-kilovolt transmission line; and
(8) appurtenant facilities. The average annual generation was 2,215,800
kilowatt-hours for the period 2008 to 2017.
    Coneross Power is operated in a modified run-of-river mode using
automatic pond level control of the turbine-generator units to minimize
fluctuations of the impoundment surface elevation, and maintain the
impoundment elevation within 6 inches of the spillway flashboard crest
from March 1 through June 30, and within 18 inches of the flashboard
crest from July 1 through the end of February. The project bypasses
approximately 1,300 feet of the Coneross Creek. A 36-cubic feet per
second (cfs) minimum flow is continuously released into the Coneross
Creek downstream of the project tailrace. In addition, a continuous
minimum flow release of 35 cfs from February 1 to May 31, and 25 cfs
from June 1 to January 31, or inflow, whichever is less, is released
into the bypassed reach. The minimum bypassed reach flow is provided
through a sluice gate in the west non-overflow section of the dam.
    m. A copy of the application is available for review at the
Commission in the Public Reference Room or may be viewed on the
Commission's website at http://www.ferc.gov using the eLibrary link.
Enter the docket number excluding the last three digits in the docket
number field to access the document. For assistance, contact FERC
Online Support. A copy is also available for inspection and
reproduction at the address in item h above.
    n. You may also register online at http://www.ferc.gov/docs-filing/esubscription.asp to be notified via email of new filings and issuances
related to this or other pending projects. For assistance, contact FERC
Online Support.
    o. Scoping Process
    Commission staff intend to prepare a single Environmental
Assessment (EA) for the Coneross Hydroelectric Project in accordance
with the National Environmental Policy Act. The EA will consider both
site-specific and cumulative environmental impacts and reasonable
alternatives to the proposed action.
    At this time, we do not anticipate holding on-site public or agency
scoping meetings. Instead, we are soliciting your comments and
suggestions on the preliminary list of issues and alternatives to be
addressed in the EA, as described in scoping document 1 (SD1), issued
February 20, 2020. We are extending the comment deadline set in the
February 20, 2020 SD1 to provide an additional 30 days from the date of
this notice to file comments.
    Copies of the SD1 outlining the subject areas to be addressed in
the EA were distributed to the parties on the Commission's mailing list
and the applicant's distribution list. Copies of SD1 may be viewed on
the web at http://www.ferc.gov using the eLibrary link. Enter the
docket number excluding the last three digits in the docket number
field to access the document. For assistance, call 1-866-208-3676 or
for TTY,<PHONE_NUMBER>.

    Dated: March 10, 2020.
Kimberly D. Bose,
Secretary.
[FR Doc. 2020-05392 Filed 3-16-20; 8:45 am]
BILLING CODE 6717-01-P