[Federal Register Volume 82, Number 75 (Thursday, April 20, 2017)]
[Notices]
[Pages 18631-18632]
[FR Doc No: 2017-07974]

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

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

Combined Notice of Filings #1

    Take notice that the Commission received the following electric
rate filings:

    Docket Numbers: ER16-2703-002.
    Applicants: Deerfield Wind Energy, LLC.
    Description: Notice of Non-Material Change In Status of Deerfield
Wind Energy, LLC.
    Filed Date: 04/13/2017.
    Accession Number: 20170413-5384.
    Comment Date: 5:00 p.m. ET 5/4/17.

    Docket Numbers: ER17-1320-001.
    Applicants: Odyssey Solar, LLC.
    Description: Tariff Amendment: Amendment to 3 to be effective 12/
13/9998.
    Filed Date: 4/14/17.
    Accession Number: 20170414-5132.
    Comments Due: 5 p.m. ET 5/5/17.

    Docket Numbers: ER17-1420-000.
    Applicants: PJM Interconnection, L.L.C.
    Description: PJM Interconnection, L.L.C. submits tariff filing per
35.13(a)(2)(iii: Revisions to OATT Sch. 12--Appdx A re: Artifical
Island Approved April 2017 to be effective 11/30/2016.
    Filed Date: 04/13/2017.
    Accession Number: 20170413-5302.
    Comment Date: 5:00 p.m. ET 5/4/17.

    Docket Numbers: ER17-1421-000.
    Applicants: Public Service Company of Colorado.
    Description: Sec.  205(d) Rate Filing: OATT PSCo-NREL-Non-Cnfrm
SGIA-385-0.0.0 to be effective 6/14/2017.
    Filed Date: 4/14/17.
    Accession Number: 20170414-5094.
    Comments Due: 5 p.m. ET 5/5/17.

    Docket Numbers: ER17-1422-000.
    Applicants: Midcontinent Independent System Operator, Inc.
    Description: Sec.  205(d) Rate Filing: 2017-04-14_SA 2786 ITC
Midwest-Interstate Power & Light GIA (J233) to be effective 4/3/2017.
    Filed Date: 4/14/17.
    Accession Number: 20170414-5102.
    Comments Due: 5 p.m. ET 5/5/17.

    Docket Numbers: ER17-1423-000.
    Applicants: Midcontinent Independent System Operator, Inc.
    Description: Sec.  205(d) Rate Filing: 2017-04-14_SA 3010 ITC-
Freeborn Wind GIA (J407) to be effective 4/3/2017.
    Filed Date: 4/14/17.
    Accession Number: 20170414-5109.
    Comments Due: 5 p.m. ET 5/5/17.

    The filings are accessible in the Commission's eLibrary system by
clicking on the links or querying the docket number.
    Any person desiring to intervene or protest in any of the above
proceedings must file in accordance with Rules 211 and 214 of the
Commission's Regulations (18 CFR 385.211 and Sec.  385.214) on or
before 5:00 p.m. Eastern time on the specified comment date. Protests
may be considered, but intervention is necessary to become a party to
the proceeding.
    eFiling is encouraged. More detailed information relating to filing

requirements, interventions, protests, service, and qualifying
facilities filings can be found at: http://www.ferc.gov/docs-filing/efiling/filing-req.pdf. For other information, call<PHONE_NUMBER>
(toll free). For TTY, call<PHONE_NUMBER>.

    Dated: April 14, 2017.
Kimberly D. Bose,
Secretary.
[FR Doc. 2017-07974 Filed 4-19-17; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 86, Number 23 (Friday, February 5, 2021)]
[Notices]
[Pages 8416-8419]
[FR Doc No: 2021-02410]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-91038; File No. SR-NYSEArca-2021-09]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
of Proposed Rule Change To Amend Rule 6.86-O To Eliminate the Use of
Dark Series on the Exchange

February 1, 2021.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that, on January 26, 2021, NYSE Arca, Inc. (``NYSE Arca'' or the
``Exchange'') 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 self-regulatory
organization. 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\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

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

    The Exchange proposes to amend Rule 6.86-O (Firm Quotes) to
eliminate the use of dark series on the Exchange. The proposed change
is available on the Exchange's website at www.nyse.com, at the
principal office of the Exchange, and at the Commission's Public
Reference Room.

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

    In its filing with the Commission, the self-regulatory organization
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 the
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of this rule change is to eliminate the exclusion of
inactive or ``dark'' series (as described below) from the requirements
of Rule 6.86-O (Firm Quotes) and to delete in its entirety Commentary
.03 to Rule 6.86-O in its entirety.
    Rule 6.86-O describes the obligations of the Exchange to collect,
process and make available to quotation vendors the best bid and best
offer for each option series that is a reported security.\4\ However,
under Commentary .03 to Rule 6.86-O, the only quote messages that the
Exchange sends to Options Price Reporting Authority (``OPRA'') are
quotes for ``active'' series, which are defined as any series that: (i)
Has traded on any options exchange in the previous 14 calendar days;
(ii) is solely listed on the Exchange; (iii) has been trading ten days
or less; or (iv) is a series in which the Exchange has an order.\5\ Any
options series that falls outside of the above categories of ``active''
series are deemed inactive or ``dark'' series. As such, under the Rule,
the Exchange still accepts quotes from OTP Holders in these series;
however, such quotes are not disseminated to OPRA. The Exchange
proposes to modify Rule 6.86-O and to delete Commentary. 03 to Rule
6.86-O to eliminate the use of ``dark'' series.
---------------------------------------------------------------------------

    \4\ See Rule 6.86-O. See also Securities Exchange Act Release
No. 55156 (January 23, 2007), 72 FR 4759 (February 21, 2007) (SR-
NYSEArca-2006-73) (order approving the Rule).
    \5\ A series may be considered ``active'' on an intraday basis
if: (i) The series trades at any options exchange; (ii) NYSE Arca
receives an order in the series; or (iii) NYSE Arca receives a
request for quote from a customer in that series.'' See Commentary
.03 to Rule 6.86-O.
---------------------------------------------------------------------------

    By way of background, Commentary .03 to Rule 6.86 was adopted over
a decade ago in connection with the Penny Pilot Program, which has
since been made permanent.\6\ At that time, there were five options
exchanges and an industry-wide concern about ``capacity issues related
to excessive quoting rates.'' \7\ However, since that time, 11 new
exchanges launched, resulting in a total 16 options exchanges. With the
increase in the number of exchanges, and associated quote traffic, OPRA
capacity has been increased without issue.
---------------------------------------------------------------------------

    \6\ See Securities Exchange Act Release No. 54590 (October 12,
2006), 71 FR 61525 (October 18, 2006) (SR-NYSEArca-2006-73) (notice
regarding proposed adoption of the Rule) (``Notice''). See also
Securities Exchange Act Release No. 88532 (April 1, 2020), 85 FR
19545 (April 7, 2020) (File No. 4-443) (order approving Amendment
No. 5 to the Plan for the Purpose of Developing and Implementing
Procedures to Facilitate the Listing and Trading of Standardized
Options).
    \7\ See id., Notice, 71 FR at 61527. For example, in 2006-2007,
OPRA had the capacity to process 360,000 message per second and, at
its peak message rate, the Exchange accounted for 15% of OPRA
capacity, sending 55, 248 message per second for active series.
---------------------------------------------------------------------------

    As discussed further below, the Exchange believes that OPRA has the
capacity to accommodate any increase in quote traffic from the Exchange
arising from the publication of quotes in ``dark series.'' As an OPRA
participant, the Exchange makes capacity requests to OPRA.
Notwithstanding Commentary .03 to Rule 6.86-O, when the Exchange makes
capacity requests to OPRA, it has always factored the total quote
traffic it receives from Market Makers, including quotes in dark
series.\8\ In other words, the Exchange presumes that all series will
be active and therefore requests capacity to accommodate sending quotes
for all series to OPRA. As such, the Exchange does not believe the
proposed rule change would impact or change its capacity requests to
OPRA. Nor would it change the total amount of capacity needed at OPRA
to accommodate quotes in dark series from the Exchange because those
series have already been factored into the Exchange's capacity requests
to OPRA.

Similarly, because OPRA publishes quote capacity information to the
market (which already incorporates capacity planning that includes
quotes in dark series that would be disseminated to OPRA), market
participants (including data vendors and subscribers) have the
opportunity to prepare for and make any necessary accommodations for
anticipated quote traffic. Accordingly, the elimination of the
Exchange's suppression of quotes in dark series should not impact
market participants or downstream users that consume Exchange or OPRA
data. Thus, the Exchange believes that this proposal would not impact
its capacity requests to OPRA nor would it impact market participants
or downstream consumers of OPRA data.
---------------------------------------------------------------------------

    \8\ OPRA has delegated certain functions pertaining to planning
the capacity of the OPRA System to an Independent System Capacity
Advisor (``ISCA'') that ``may provide less than all of the capacity
that has been requested if it determines (a) that the capacity
requests of one or more of the parties are unreasonable, or (b) that
it is not reasonable to develop or maintain a System that has
capacity sufficient to satisfy the requests of the parties.'' See
the OPRA Capacity Guidelines, at p. 1, available here, https://assets.website-files.com/5ba40927ac854d8c97bc92d7/5bf419b52de21fff3e88107f_capacity_guidelines.pdf. The Exchange has
never been informed by the ISCA that the capacity it has requested
cannot be met for any reason, including because the ISCA had deemed
the request to be unreasonable. Thus, the Exchange believes that any
increase in quote traffic that might be sent to OPRA as a result of
the current proposal should not impact any other exchange's capacity
at OPRA.
---------------------------------------------------------------------------

    The Exchange also believes that the proposed discontinuation of its
suppression of quotes in dark series would increase transparency and
enhance price discovery. Specifically, as proposed, all Market Maker
quotes (including in ``inactive series'' under the current Rule) would
be displayed and reflected in the market to the benefit of all market
participants who would be on notice of such liquidity. The Exchange
also notes that, over the years, certain market participants have
expressed confusion regarding what quotes are being published and which
are being suppressed. Therefore, the Exchange believes that the
proposal would remove the element of potential confusion among market
participants by publishing all quotes (not just those in active series)
in the disseminated quote feed.
    Importantly, since the adoption of Commentary .03 to Rule 6.86-O,
the Exchange has implemented the following measures that serve as
additional safeguards against excessive quoting:

    Monitoring: The Exchange actively monitors the quotation
activity of its Market Makers. When the Exchange detects that a
Market Maker is disseminating an unusual number of quotes, the
Exchange contacts that Market Maker and alerts it to such activity.
Such monitoring may reveal that the Market Maker may have internal
system issues or has incorrectly set system parameters that were not
immediately apparent. Alerting a Market Maker to the heightened
levels of activity will usually result in a change that reduces the
number of quotes sent to the Exchange by the Market Maker.

--Codification of select provisions of the Options Listing
Procedures Plan (``OLPP'') in Rule 6.4A-O.\9\ The OLPP is a national
market system plan that, among other things, sets forth procedures
governing the listing of new options series. From the OLPP, the
Exchange incorporated in Rule 6.4A-O ``applied uniform standards to
the range of options series exercise (or strike) prices available
for trading on the [Exchange] as a quote mitigation strategy.'' \10\
In approving the OLPP provisions, subsequently incorporated in Rule
6.4A-O, the Commission indicated that ``adopting uniform standards
to the range of options series exercise (or strike) prices available
for trading on the [Exchange] should reduce the number of option
series available for trading, and thus should reduce increases in
the options quote message traffic because market participants will
not be submitting quotes in those series.'' \11\ The Exchange
believes that adherence to the OLPP standard for strike listings has
contributed to the decline of the number of strikes listed, which
has in turn, reduced the amount of quotes in ``dark series.'' that
were held back from OPRA.\12\
---------------------------------------------------------------------------

    \9\ See Securities Exchange Act Release No. 61977 (April 23,
2010), 75 FR 22884 (April 30, 2010) (SR-NYSEArca-2010-30). See also
OLPP, available at, http://www.theocc.com/clearing/industry-services/olpp.jsp.
    \10\ Rule 6.4A-O codified Amendment No. 3 to the OLPP. See
Securities Exchange Act Release No. 60531 (August 19, 2009), 74 FR
43173 (File No. 4-443). See also Rule 6.4A-O.
    \11\ Id., 74 FR at 43174.
    \12\ When the Exchange adopted its quote mitigation rule, which
the Exchange copied, it estimated that deployment of the rule would
reduce its quote traffic by 20-30%. See supra note 6, Notice, 71 FR
at 61527. In actuality, the rule has resulted in a reduction of
approximately 10% of quote message traffic to OPRA. The Exchange
believes this disparity was a result of the number of ``inactive''
series being much lower than anticipated because of increased
competition and quoting activity as well as limitations on
proliferation of unnecessary strikes, per the OLPP.
---------------------------------------------------------------------------

--Refined Market Maker Quoting Obligations: One year after adopting
select provisions of the OLPP, the Exchange refined the quoting
obligations applicable to Market Makers as a quote mitigation
strategy.\13\ Specifically, the Exchange adopted Commentary .01 to
Rule 6.37A-O, which states that Lead Market Makers' and Market
Makers' continuous quoting obligations ``shall not apply to Market
Makers with respect to adjusted option series, and series with a
time to expiration of nine months or greater, for options on
equities and Exchange Traded Fund Shares, and series with a time to
expiration of twelve months or greater for Index options.'' \14\
Because there are no Market Maker quoting obligations associated
with adjusted options series, there is a reduction in quote traffic
that is sent to OPRA. Indeed, in approving the text of Commentary
.01 to Rule 6.37A-O, the Commission noted, ``. . . the Exchange's
proposal would reduce the burden on market makers to submit
continuous quotes that the Exchange may not submit to OPRA.'' \15\
---------------------------------------------------------------------------

    \13\ See Securities Exchange Act Release No. 65573 (October 14,
2011), 76 FR 65305 (October 20, 2011) (SR-NYSEArca-2011-59).
    \14\ An ``adjusted series'' is ``an option series wherein, as a
result of a corporate action by the issuer of the underlying
security, one option contract in the series represents the delivery
of other than 100 shares of underlying stock or Exchange-Traded Fund
Shares.'' See Commentary .01 to Rule 6.37A-O.
    \15\ See supra note 13, 76 FR at 65306.

    The Exchange believes that these quote mitigation strategies would
allow the Exchange to continue to effectively mitigate quote message
traffic.
    In connection with the foregoing, the Exchange proposes to amend
paragraphs (b)(1) and (b)(2) of Rule 6.86-O to delete references to the
``Quote Mitigation Plan,'' and to delete in its entirety Commentary .03
to Rule 6.86-O.
Implementation
    The Exchange will announce the implementation date of the proposed
rule change in a Trader Update within 60 days of rule approval.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section
6(b) of the Securities Exchange Act of 1934 (the ``Act''),\16\ in
general, and furthers the objectives of Section 6(b)(5) of the Act,\17\
in particular, in that it is designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade, to remove impediments to and perfect the mechanism
of a free and open market and a national market system, and, in
general, to protect investors and the public interest.
---------------------------------------------------------------------------

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

    The Exchange believes that the proposed elimination of Commentary
.03 to Rule 6.86-O (and references to quote mitigation in Rule 6.86-O)
would promote just and equitable principles of trade, as well as serve
to remove impediments to and perfect the mechanism of a free and open
market because the Exchange's systems capacity is more than sufficient
to accommodate any increase in quote traffic to OPRA as a result of the
proposed rule change. First, the Exchange believes that the proposed
rule change would promote just and equitable principles of trade, as
well as serve to remove impediments to and perfect the mechanism of a
free and open market because the proposed change would increase
transparency and enhance price discovery. Specifically, as proposed,
all Market Maker quotes (including those in ``inactive series'' under
the current Rule) would be displayed and reflected in the market to the
benefit of all market participants who would be on notice of such
liquidity. The Exchange also believes that the proposal would remove
the element of potential confusion among market participants by
publishing all quotes (not just those in active series) in the
disseminated quote feed.

    In addition, the proposed change would promote just and equitable
principles of trade, as well as serve to remove impediments to and
perfect the mechanism of a free and open market because the Exchange's
capacity requests already presume that all series are active. Hence,
the Exchange believes that the existing capacity planning at OPRA
already factors in quotes in dark series being lit and therefore does
not believe that the elimination of this rule (and any resulting
increase in quote traffic) would have a negative impact on capacity.
    The Exchange further believes that the existing quote mitigation
strategies (i.e., monitoring of quoting activity, codification of the
OLPP, and refined Market Maker quoting obligations) employed by the
Exchange serve to reduce the potential for excessive quoting and
therefore reduce quote traffic.
    Importantly, the circumstances giving rise to Commentary .03 to
Rule 6.86-O--industry-wide concern about ``capacity issues related to
excessive quoting rates''--has subsided given that OPRA capacity has
increased exponentially over the last decade coincident with the influx
of new options exchanges. In addition, the proposed increase in quote
traffic as a result of this proposal is minimal and therefore unlikely
to adversely impact the flow of message traffic and/or harm downstream
consumers of OPRA data. As noted above, the increase in quotes message
traffic in dark series is already considered in the Exchange's capacity
requests to OPRA and already published to downstream users of OPRA
data. As such, the Exchange believes the proposed change would not
impede the protection of investors and the public interest. Thus, the
Exchange believes there is sufficient capacity at OPRA to accommodate
any additional quote traffic that will result from elimination of dark
series. The Exchange therefore believes that its proposal will not
impact the protection of investors and the public interest.
    Finally, as discussed above, the Exchange does not anticipate that
its proposal would negatively impact systems capacity. However, to the
extent it does, the Exchange has analyzed its capacity and represents
that it and the OPRA have the necessary systems capacity to handle any
incremental additional traffic associated with this proposed rule
change.

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. Specifically, as discussed
above, the Exchange believes that any increase in quote traffic that
might be sent to OPRA as a result of the proposed rule change would be
minimal and should not impact any other exchange's capacity at OPRA.
The Exchange likewise believes that there would be no adverse impact on
any downstream consumers of OPRA data given that any increase in quote
traffic would be minimal and has already been included in the
Exchange's capacity planning requests to OPRA.
    Intramarket Competition. The elimination of ``dark series'' would
increase intra market competition and improve quote quality, because
prices and sizes of all Exchange quotations would be sent to OPRA to be
published and updated. At present, Market Makers cannot ``see'' the
internal best bid and offer in a dark series, nor can they improve upon
the displayed market to establish price/time priority. This proposal to
publish the quotes in inactive series will enhance intramarket
competition because Market Makers will be able to submit more
competitive quotes.
    Intermarket Competition. For reasons similar to those described in
the Intramarket Competition section, eliminating the use of dark series
and publishing to OPRA the Exchange's previously unpublished quotes on
such series would increase competition between markets, because NYSE
Arca's quotes would now be visible and included in the calculation of
the NBBO. Including all of NYSE Arca's quotes in the NBBO (including
those in dark series), an options participant will know if an order
should be sent to NYSE Arca to get the best price. Market Makers that
use a strategy to ``match'' the NBBO will now need to factor NYSE Arca
quotes into their calculations.

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

    No written comments were solicited or received with respect to the
proposed rule change.

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

    Within 45 days of the date of publication of this notice in the
Federal Register or up to 90 days (i) as the Commission may designate
if it finds such longer period to be appropriate and publishes its
reasons for so finding or (ii) as to which the self-regulatory
organization consents, the Commission will:
    (A) by order approve or disapprove the proposed rule change, or
    (B) institute proceedings to determine whether the proposed rule
change should be disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-NYSEArca-2021-09 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-NYSEArca-2021-09. 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-NYSEArca-2021-09 and

should be submitted on or before February 26, 2021.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
J. Matthew DeLesDernier,
Assistant Secretary.

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

    \18\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

[FR Doc. 2021-02410 Filed 2-4-21; 8:45 am]
BILLING CODE 8011-01-P