[Federal Register Volume 80, Number 208 (Wednesday, October 28, 2015)]
[Notices]
[Pages 66063-66065]
[FR Doc No: 2015-27352]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76232; File No. SR-ISE-2015-34]

Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change To Extend the Limit Up-Limit Down Obvious Error Pilot

October 22, 2015.
    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 October 20, 2015, the International Securities Exchange, LLC
(the ``Exchange'' or the ``ISE'') filed with the Securities and
Exchange Commission the proposed rule change, as described in Items I
and II 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.
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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 the
Substance of the Proposed Rule Change

    The ISE proposes to extend a pilot program under .01 of
Supplementary Material to Rule 720 regarding obvious errors during
Limit and Straddle States in securities that underlie options traded on
the Exchange and proposes to further harmonize a related provision in
its rulebook. The text of the proposed rule change is available on the
Exchange's Web site (http://www.ise.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 these statements may be examined at
the places specified in Item IV below. The self-regulatory organization
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
    On April 5, 2013,\3\ the Commission approved a proposed rule change
designed to address certain issues related to the Plan to Address
Extraordinary Market Volatility Pursuant to Rule 608 of Regulation NMS
under the Act (the ``Limit Up-Limit Down Plan'' or the ``Plan'').\4\
The rules adopted in that filing established a one year pilot program
to exclude transactions executed during a Limit State \5\ or Straddle
State \6\ from the obvious error provisions of Rule 720. On February
19, 2015, the Exchange filed to extend this pilot program to its
current end date of October 23, 2015.\7\ The purpose of this filing is
to extend the effectiveness of the pilot program to coincide with the
proposed extension of the Limit Up-Limit Down Plan, including any
extensions to the pilot period for the Plan.\8\ The Exchange notes that
nothing in .01 of Supplementary Material to Rule 720 prevents such
execution from being reviewed on an Official's \9\ own motion pursuant
to sub-paragraph (c)(3) of this Rule, or a bust or adjust pursuant to
paragraphs (e) through (j) of this Rule.
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    \3\ See Securities Exchange Act Release No. 69329 (April 5,
2013), 78 FR 21657 (April 11, 2014) (SR-ISE-2013-22) (Approval
Order); 69110 (March 11, 2013) 78 FR 16726 (March 18, 2013) (SR-ISE-
2013-22) (Notice of Filing).
    \4\ See Securities Exchange Act Release No. 67091 (May 31,
2012), 77 FR 33498 (June 6, 2012) (the ``Limit Up-Limit Down
Release'').
    \5\ The term ``Limit State'' means the condition when the
national best bid or national best offer for an underlying security
equals an applicable price band, as determined by the primary
listing exchange for the underlying security. See Rule 703A.
    \6\ The term ``Straddle State'' means the condition when the
national best bid or national best offer for an underlying security
is non-executable, as determined by the primary listing exchange for
the underlying security, but the security is not in a Limit State.
See Rule 703A.
    \7\ Securities Exchange Act Release No. 74335 (February 20,
2015), 80 FR 10549 (February 26, 2015) (SR-ISE-2015-07).
    \8\ Currently, the pilot period for the Plan is proposed to be
extended to April 22, 2016. See Exchange Act Release No. 75917
(September 14, 2015), 80 FR 56515 (September 18, 2015) (Ninth
Amendment to the Limit-Up Limit-Down Plan).
    \9\ For purposes of Rule 720, an Official is an Officer of the
Exchange or such other employee designee of the Exchange that is
trained in the application of this Rule.
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    The Exchange believes the benefits to market participants from this
provision should continue on a pilot basis. The Exchange continues to
believe that adding certainty to the execution of orders in Limit or
Straddle States will encourage market participants to continue to
provide liquidity to the Exchange, and, thus, promote a fair and
orderly market during these periods. Barring this provision, the
obvious error provisions of Rule 720 would likely apply in many
instances during Limit and Straddle States. The Exchange believes that
continuing the pilot will protect against any unanticipated
consequences in the options markets during a Limit or Straddle State.
Thus, the Exchange believes that the protections of current rule should
continue while the industry gains further experience operating the
Plan.
    In connection with this proposed extension, each month the Exchange
shall provide to the Commission, and the public, a dataset containing
the data for each Straddle and Limit State in optionable stocks that
had at least one trade on the Exchange. For each trade

on the Exchange, the Exchange will provide (a) the stock symbol, option
symbol, time at the start of the Straddle or Limit State, an indicator
for whether it is a Straddle or Limit State, and (b) for the trades on
the Exchange, the executed volume, time-weighted quoted bid-ask spread,
time-weighted average quoted depth at the bid, time-weighted average
quoted depth at the offer, high execution price, low execution price,
number of trades for which a request for review for error was received
during Straddle and Limit States, an indicator variable for whether
those options outlined above have a price change exceeding 30% during
the underlying stock's Limit or Straddle State compared to the last
available option price as reported by OPRA before the start of the
Limit or Straddle State (1 if observe 30% and 0 otherwise), and another
indicator variable for whether the option price within five minutes of
the underlying stock leaving the Limit or Straddle State (or halt if
applicable) is 30% away from the price before the start of the Limit or
Straddle State.
    In addition, the Exchange will provide to the Commission, and the
public, no later than five months prior to the pilot expiration,
including any extension, assessments relating to the impact of the
operation of the obvious error rules during Limit and Straddle States
including: (1) An evaluation of the statistical and economic impact of
Limit and Straddle States on liquidity and market quality in the
options markets, and (2) an assessment of whether the lack of obvious
error rules in effect during the Straddle and Limit States are
problematic. This means that, if the Plan extension is approved, the
next data assessment will be due no later than December 18, 2015.
    Finally, the Exchange proposes to delete section (d) of Rule 703A
to harmonize its rulebook. Earlier this year, the options exchanges
harmonized their rules relating to the adjustment and nullification of
erroneous options transactions as well as a specific provision related
to coordination in connection with large-scale events involving
erroneous options transactions.\10\ The Exchange inadvertently did not
remove section (d) to Rule 703A from its rulebook in this filing. This
section (d) duplicates .01 of Supplementary Material to Rule 720, and
as such, the Exchange proposes to delete it.

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    \10\ Securities Exchange Act Release No. 74896 (May 7, 2015), 80
FR 27373 (May 13, 2015) (SR-ISE-2015-18).
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with the
requirements of the Act and the rules and regulations thereunder that
are applicable to a national securities exchange, and, in particular,
with the requirements of Section 6(b) of the Act.\11\ In particular,
the proposal is consistent with Section 6(b)(5) of the Act,\12\ because
it is designed to promote just and equitable principles of trade,
remove impediments to and perfect the mechanisms 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) \13\
requirement that the rules of an exchange not be designed to permit
unfair discrimination between customers, issuers, brokers, or dealers.
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    \11\ 15 U.S.C. 78f(b).
    \12\ 15 U.S.C. 78f(b)(5).
    \13\ Id.
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    In particular, the Exchange further believes that it is necessary
and appropriate in the interest of promoting fair and orderly markets
to exclude transactions executed during a Limit or Straddle State from
certain aspects of Rule 720. The Exchange believes the application of
the current rule will be impracticable given the lack of a reliable
national best bid or offer in the options market during Limit and
Straddle States, and that the resulting actions (i.e., nullified trades
or adjusted prices) may not be appropriate given market conditions.
Extending this pilot to coincide with the Limit Up-Limit Down Plan
would ensure that limit orders that are filled during a Limit or
Straddle State would have certainty of execution in a manner that
promotes just and equitable principles of trade, removes impediments
to, and perfects the mechanism of a free and open market and a national
market system. Thus, the Exchange believes that the protections of the
pilot should continue while the industry gains further experience
operating the Plan. Finally, the Exchange proposes to delete section
(d) of Rule 703A to harmonize its rulebook to prevent investor
confusion.

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, the Exchange
believes that, by extending the expiration of the pilot, the proposed
rule change will allow for further analysis of the pilot and a
determination of how the pilot shall be structured in the future. In
doing so, the proposed rule change will also serve to promote
regulatory clarity and consistency, thereby reducing burdens on the
marketplace and facilitating investor protection.

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

    The Exchange has not solicited, and does not intend to solicit,
comments on this proposed rule change. The Exchange has not received
any unsolicited written comments from members or other interested
parties.

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

    Because the 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 from the date on which it was filed, or such shorter time as the
Commission may designate if consistent with the protection of investors
and the public interest, the proposed rule change has become effective
pursuant to Section 19(b)(3)(A) of the Act \14\ and Rule 19b-
4(f)(6)(iii) thereunder.\15\
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    \14\ 15 U.S.C. 78s(b)(3)(A).
    \15\ 17 CFR 240.19b-4(f)(6)(iii). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written
notice of its intent to file the proposed rule change, along with a
brief description and the text of 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.
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    The Exchange has asked the Commission to waive the 30-day operative
delay so that the proposal may become operative immediately upon
filing. The Commission believes that waiving the 30-day operative delay
is consistent with the protection of investors and the public interest,
as it will allow the obvious error pilot program to continue
uninterrupted while the industry gains further experience operating
under the Plan, and avoid any investor confusion that could result from
a temporary interruption in the pilot program. For this reason, the
Commission designates the proposed rule change to be operative upon
filing.\16\
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    \16\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).

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    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is 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-ISE-2015-34 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-ISE-2015-34. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549 on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-ISE-2015-34, and should be
submitted on or before November 18, 2015.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
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    \17\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-27352 Filed 10-27-15; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 77, Number 60 (Wednesday, March 28, 2012)]
[Notices]
[Page 18809]
[FR Doc No: 2012-7442]

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ENVIRONMENTAL PROTECTION AGENCY

[FRL-9653-4]

Clean Water Act Section 303(d): Proposed Withdrawal of Nine Total
Maximum Daily Loads (TMDLs)

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice of proposed withdrawal of nine TMDLs.

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SUBJECT: The EPA hereby issues notice of the proposed withdrawal of
nine final Total Maximum Daily Loads (TMDLs) for Chloride, Sulfate, and
Total Dissolved Solids (TDS) for the Bayou de L'Outre Watershed in
Arkansas. The EPA proposes to withdraw the Bayou de L'Outre TMDLs due
to the discovery of inconsistencies in the values used to derive the
flow and load duration curves, resulting in the calculation of TMDLs
which do not accurately reflect the loading capacity of the segments.
Any future withdrawal action will not affect seven final TMDLs
published under the same Federal Register notice (see 76 FR 52947)
which pertain to segments 08040203-010, 08040204-006, and 08040206-015,
-016, -716, -816, -916.

DATES: Comments on the proposed withdrawal action must be submitted in
writing to the EPA on or before April 27, 2012.

ADDRESSES: Comments on the proposed withdrawal action of the Bayou de
L'Outre TMDLs should be sent to Diane Smith, Environmental Protection
Specialist, Water Quality Protection Division, U.S. Environmental
Protection Agency Region 6, 1445 Ross Avenue Dallas, TX 75202-2733, or
emailed to<EMAIL_ADDRESS>The administrative record files for the
nine TMDLs are available for public inspection at the previously listed
address. Please contact Diane Smith (via mail, email, or by calling
(214) 665-2145) to schedule an inspection or to obtain copies of
relevant supporting documents. Documents from the administrative record
files may also be viewed at http://www.epa.gov/region6/water/npdes/tmdl/index.htm.

SUPPLEMENTARY INFORMATION: The TMDLs were developed under EPA Contract
Number 68-C-02-108. The Federal Register notice of availability,
seeking public comments on the draft TMDLs, was published on December
17, 2007 (see 72 FR 71409). Public comments were received by January
16, 2008, and a response to each comment was provided. The Federal
Register notice of availability for the final TMDLs was published on
August 24, 2011 (see 76 FR 52947). The nine pollutant pairs for Bayou
de L'Outre subject to the proposed withdrawal are as follows.

------------------------------------------------------------------------
       Segment (reach)           Waterbody name           Pollutant
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08040202-006................  Bayou de L'Outre....  Chloride, Sulfate,
                                                     TDS.
08040202-007................  Bayou de L'Outre....  Chloride, Sulfate,
                                                     TDS.
08040202-008................  Bayou de L'Outre....  Chloride, Sulfate,
                                                     TDS.
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    The 2008 Arkansas Clean Water Act (CWA) Section 303(d) list of
impaired waters is the current EPA approved list, and includes the
three Bayou de L'Outre segments addressed by this action. Any future
withdrawal action of the aforementioned TMDLs will not affect the
listing of those segments.

FOR FURTHER INFORMATION CONTACT: Diane Smith, Environmental Protection
Specialist, Water Quality Protection Division, U.S. EPA Region 6, 1445
Ross Avenue, Dallas, TX 75202-2733,<PHONE_NUMBER>.

    Dated: March 21, 2012.
William K. Honker,
Acting Director, Water Quality Protection Division, EPA Region 6.
[FR Doc. 2012-7442 Filed 3-27-12; 8:45 am]
BILLING CODE 6560-50-P