[Federal Register Volume 80, Number 197 (Tuesday, October 13, 2015)]
[Proposed Rules]
[Pages 61330-61332]
[FR Doc No: 2015-25643]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2015-3661; Directorate Identifier 2015-NE-24-AD]
RIN 2120-AA64

Airworthiness Directives; Dowty Propellers Constant Speed
Propellers

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: We propose to adopt a new airworthiness directive (AD) for
certain Dowty Propellers R352/6-123-F/1, R352/6-123-F/2, and R410/6-
123-F/35 model propellers. This proposed AD was prompted by reports of
dowel hole cracks in the face of the rear hub half. This proposed AD
would require a records review to determine repair status and marking
the affected propeller hubs as required. This proposed AD would also
require installing dowel hole liners as necessary. We are proposing
this AD to prevent loss of structural integrity of the propeller hub,
which could result in damage to the propeller and damage to the
airplane.

DATES: We must receive comments on this proposed AD by December 14,
2015.

ADDRESSES: You may send comments by any of the following methods:
     Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow the instructions for submitting comments.
     Mail: Docket Management Facility, U.S. Department of
Transportation, 1200 New Jersey Avenue SE., West Building Ground Floor,
Room W12-140, Washington, DC 20590-0001.
     Hand Delivery: Deliver to Mail address above between 9
a.m. and 5 p.m., Monday through Friday, except Federal holidays.
     Fax:<PHONE_NUMBER>.
    For service information identified in this proposed AD, contact
Dowty Propellers, 114 Powers Court, Sterling, VA 20166; phone: 703-421-
4434; fax:<PHONE_NUMBER>; email<EMAIL_ADDRESS>Internet:
www.http://dowty.com/services/repair-and-overhaul. You may view this
service information at the FAA, Engine & Propeller Directorate, 12 New
England Executive Park, Burlington, MA. For information on the
availability of this material at the FAA, call<PHONE_NUMBER>.

Examining the AD Docket

    You may examine the AD docket on the Internet at http://www.regulations.gov by searching for and locating Docket No. FAA-2015-
3661; or in person at the Docket Operations office between 9 a.m. and 5
p.m., Monday through Friday, except Federal holidays. The AD docket
contains this proposed AD, the mandatory continuing airworthiness
information (MCAI), the regulatory evaluation, any comments received,
and other information. The address for the Docket Office (phone: 800-
647-5527) is in the ADDRESSES section. Comments will be available in
the AD docket shortly after receipt.

FOR FURTHER INFORMATION CONTACT: Michael Schwetz, Aerospace Engineer,
Boston Aircraft Certification Office, FAA, Engine & Propeller
Directorate, 12 New England Executive Park, Burlington, MA 01803;
phone:<PHONE_NUMBER>; fax<PHONE_NUMBER>; email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Comments Invited

    We invite you to send any written relevant data, views, or
arguments about this NPRM. Send your comments to an address listed
under the ADDRESSES section. Include ``Docket No. FAA-2015-3661;
Directorate Identifier 2015-NE-24-AD'' at the beginning of your
comments. We specifically invite comments on the overall regulatory,
economic, environmental, and energy aspects of this NPRM. We will
consider all comments received by the closing date and may amend this
NPRM based on those comments.
    We will post all comments we receive, without change, to http://www.regulations.gov, including any personal information you provide. We

will also post a report summarizing each substantive verbal contact
with FAA personnel concerning this NPRM.

Discussion

    The European Aviation Safety Agency (EASA), which is the Technical
Agent for the Member States of the European Community, has issued EASA
AD 2015-0158, dated July 30, 2015 (referred to hereinafter as ``the
MCAI''), to correct an unsafe condition for the specified products. The
MCAI states:

    Cracking around the hub location dowel holes in the face of the
rear hub half has occurred sporadically. Previous investigations
found no manufacturing defects in cracked hubs and concluded that
the hub cracking was caused by damage to the dowel holes during
propeller installation.
    Since that original SB was issued, three hubs have been found to
show cracking around the location dowel holes. The hubs were all
found cracked within a short period of time and all had low time
since new.
    This condition, if not detected, can adversely affect the
structural integrity of the propeller hub, with possible damage to
the propeller and to the aeroplane.

    You may obtain further information by examining the MCAI in the AD
docket on the Internet at http://www.regulations.gov by searching for
and locating Docket No. FAA-2015-3661.

Related Service Information Under 1 CFR Part 51

    Dowty Propellers has issued Alert Service Bulletin (ASB) No. F50-
61-A165, Revision 2, dated July 28, 2015. The service information
describes procedures for installing liners in the hub location dowel
holes in the face of the rear hub half and marking the hub with the
repair number. This service information 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 of this
NPRM.

Other Related Service Information

    Dowty Propellers has issued Component Maintenance Manual, 61-10-34,
Repair No. 53, dated May 15, 2013. The service information describes
procedures for installing liners in the hub location dowel holes and
marking the repair number on modified hubs.

FAA's Determination and Requirements of This Proposed AD

    This product has been approved by the aviation authority of the
United Kingdom, and is approved for operation in the United States.
Pursuant to our bilateral agreement with the European Community, EASA
has notified us of the unsafe condition described in the MCAI and
service information referenced above. We are proposing this NPRM
because we evaluated all information provided by EASA and determined
the unsafe condition exists and is likely to exist or develop on other
products of the same type design. This NPRM would require marking and
inspecting the affected propeller hubs to determine repair status and
installing dowel hole liners as necessary.

Costs of Compliance

    We estimate that this proposed AD would affect 4 propellers
installed on airplanes of U.S. registry. We also estimate that it would
take about 5 hours per propeller to comply with this proposed AD. The
average labor rate is $85 per hour. Required parts cost about $322 per
propeller. Based on these figures, we estimate the cost of this
proposed AD on U.S. operators to be $2,988.

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.
    We are 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

    We 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) Is not a ``significant rule'' under the DOT Regulatory Policies
and Procedures (44 FR 11034, February 26, 1979),
    (3) Will not affect intrastate aviation in Alaska to the extent
that it justifies making a regulatory distinction, and
    (4) Will 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 adding the following new airworthiness
directive (AD):

Dowty Propellers: Docket No. FAA-2015-3661; Directorate Identifier
2015-NE-24-AD.

(a) Comments Due Date

    We must receive comments by December 14, 2015.

(b) Affected ADs

    None.

(c) Applicability

    This AD applies to Dowty Propellers R352/6-123-F/1, R352/6-123-
F/2, and R410/6-123-F/35 model propellers, part numbers (P/Ns)
660715001, 660715004, and 660715005 with hub P/Ns 660715201,
660715255, 660720217, 660720241, 660720252, 660720260, and
660720288, installed.

(d) Reason

    This AD was prompted by reports of dowel hole cracks in the face
of the rear hub half. We are issuing this AD to prevent loss of
structural integrity of the propeller hub, which could result in
damage to the propeller and damage to the airplane.

(e) Actions and Compliance

    Comply with this AD within the compliance times specified,
unless already done.
    (1) At the next removal of the propeller from the airplane, or
within 7,500 flight hours (FHs), whichever occurs first, after the
effective date of this AD do the following:
    (i) Review propeller maintenance records to determine if the
affected propeller hub has been repaired in accordance with Dowty
Propellers Alert Service Bulletin (ASB) No. F50-61-A165 Revision 2,
dated July 28, 2015.

    (ii) If, during the maintenance records review required by
paragraph (e)(1)(i) of this AD, an affected hub is found not
repaired then, before next flight, install liners into the hub
location dowel holes and mark the hub. Use Dowty Propellers ASB No.
F50-61-A165 Revision 2, dated July 28, 2015 to install the liners
and mark the hub.
    (iii) If, during the maintenance records review required by
paragraph (e)(1)(i) of this AD, an affected hub is found repaired
then, before next flight, mark the hub using Dowty Propellers ASB
No. F50-61-A165 Revision 2, dated July 28, 2015.

(f) Credit for Previous Actions

    (1) You may take credit for maintenance records reviews and
installations that are required by paragraph (e) of this AD if you
performed these actions before the effective date of this AD using
Dowty Propellers ASB No. F50-61-A165 Revision 1, dated May 12, 2015
or initial issue dated November 19, 2012.
    (2) You may take credit for any maintenance records reviews or
corrective actions that are required by paragraph (e) of this AD if
you performed these actions before the effective date of this AD
using Component Maintenance Manual (CMM) 61-10-34, Repair No. 53,
dated August 11, 2008, which relates to repair scheme 650510057.

(g) Alternative Methods of Compliance (AMOCs)

    The Manager, Boston Aircraft Certification Office, FAA, may
approve AMOCs for this AD. Use the procedures found in 14 CFR 39.19
to make your request.

(h) Related Information

    (1) For more information about this AD, contact Michael Schwetz,
Aerospace Engineer, Boston Aircraft Certification Office, FAA, 12
New England Executive Park, Burlington, MA 01803; phone: 781-238-
7761; fax:<PHONE_NUMBER>; email<EMAIL_ADDRESS>    (2) Refer to MCAI European Aviation Safety Agency AD 2015-0158,
dated July 30, 2015, for more information. You may examine the MCAI
in the AD docket on the Internet at http://www.regulations.gov by
searching for and locating it in Docket No. FAA-2015-3661.
    (3) Dowty Propellers ASB No. F50-61-A165 Revision 2, dated July
28, 2015 and CMM 61-10-34, Repair No. 53, dated August 11, 2008 can
be obtained from Dowty Propellers, using the contact information in
paragraph (h)(4) of this proposed AD.
    (4) For service information identified in this proposed AD,
contact Dowty Propellers, 114 Powers Court, Sterling, VA 20166;
phone:<PHONE_NUMBER>; fax:<PHONE_NUMBER>; email:
<EMAIL_ADDRESS>Internet: www.http://dowty.com/services/repair-and-overhaul.
    (5) You may view this service information at the FAA, Engine &
Propeller Directorate, 12 New England Executive Park, Burlington,
MA. For information on the availability of this material at the FAA,
call<PHONE_NUMBER>.

    Issued in Burlington, Massachusetts, on October 1, 2015.
Colleen M. D'Alessandro,
Directorate Manager, Engine & Propeller Directorate, Aircraft
Certification Service.
[FR Doc. 2015-25643 Filed 10-9-15; 8:45 am]
 BILLING CODE 4910-13-P


UNITED STATES ENVIRONMENTAL PROTECTION AGENCY WASHINGTON, D. C. 20460 OFFICE OF PREVENTION, PESTICIDES AND TOXIC SUBSTANCES August 31, 2005 MEMORANDUM SUBJECT: Thidiazuron: HED Response to Public Comments Phase 4. PC Code: 120301, Case #: 4092, DP Barcode: D320616.

FROM: Toiya Goodlow, Chemist and Risk Assessor Reregistration Branch 1 Health Effects Division ( 7509C)

THROUGH: Whang Phang, Ph. D., Branch Senior Scientist Reregistration Branch 1 Health Effects Division ( 7509C)

TO: John Pates Jr., Chemical Review Manager Special Review and Reregistration Division ( 7508C)

This document was written in response to public comments submitted for the Human Health Risk Assessment for the Thidiazuron Reregistration Eligibility Decision Document ( RED). All comments have been reviewed by RRB1/ HED and incorporated into the Revised Human Health Risk Assessment for the Thidiazuron RED ( D319302, 8/ 31/ 05, T. Goodlow) as deemed appropriate by the Agency.

Changes include the following:

° Based on the additional characterization provided by the registrant, the residue chemistry data gaps for Guidelines 860.1850 and 860.1900, Confined and Field Accumulation in Rotational Crops, have been fulfilled.

° As decided by the HED Chemistry SAC ( Scientific Advisory Council) on August 24, 2005, the contribution of cotton gin byproducts to the dietary burden for ruminants has been reduced to 5% of the diet for beef cattle. Dairy cattle were not considered since cotton gin byproducts are no longer used as a feed item for dairy cattle. Consequently, the submitted ruminant feeding study ( MRID 43781901) is now upgradable. In order for this study to be acceptable the registrant must submit: storage stability data, raw data to support findings in the study, and an analytical enforcement method that simultaneously quantifies residues of thidiazuron and its two livestock metabolites. A new feeding study for ruminants is no longer required.

The 20% contribution to the diet as listed in Table 1 was not used for thidiazuron because HED is in the process of revising the current 20% value for cotton gin byproducts to reflect diet contributions of 5% for finishing beef. However, until Table 1 revisions are completed, reductions to the diet contribution percentages for cotton gin byproducts will be decided on a case by case basis.

° The poultry feeding study requirement ( Guideline 860.1480) has been waived. After reevaluating MRID 43940701, HED has concluded that the study performed at the 5x application rate demonstrates sufficient evidence of thidiazuron residue dissipation.

° The acute inhalation test animal was changed from rabbit to rat in Table 4.1.1a.

° The repeated dose in Table <IP_ADDRESS>b was corrected to reflect a dose of 73 75% ( U).

° The number of test animals was corrected for the chronic dog toxicity study.

° Appendix 3.0, Section 3.1 was revised to report an administered radioactivity of 0.2%.

The following comments were not revised in the risk assessment:

° Comment: [ 14C analine] thidiazuron was fed at a dose exaggeration of ( 13.3x) to a lactating cow at a rate of 20 ppm for seven days.

Response: MRID 42529002 entitled M12 Thidiazuron: The Metabolism of 14CThidiazuron in the Cow, reported feeding doses of both 10 ppm and 20 ppm in the lactating cow study. Since the doses are interchanged throughout the document, the Agency cannot state the dose as being 20 ppm until clarification is provided. HED is requesting that the registrant verify the actual dose administered in the study.

References Goodlow, Toiya. DP Barcode: D319302. August 31, 2005. Thidiazuron: Revised HED Chapter of the Reregistration Eligibility Decision Document ( RED), Phase 3 Public Comments.

Madden, Barbara. DP Barcode: D246944. June 24, 1998. Bromoxynil: Revised Human Health Risk Assessment for Bromoxynil.

7509C: RRB1: TGoodlow: CM# 2: Rm 722H: 308 0070: 8/ 31/ 05 WPhang: 8/ 31/ 05


[Federal Register Volume 78, Number 44 (Wednesday, March 6, 2013)]
[Notices]
[Page 14537]
[FR Doc No: 2013-05093]

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ENVIRONMENTAL PROTECTION AGENCY

[EPA-HQ-OPP-2013-0001; FRL-9379-8]

SFIREG Full Committee; Notice of Public Meeting

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

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SUMMARY: The Association of American Pesticide Control Officials
(AAPCO)/State FIFRA Issues Research and Evaluation Group (SFIREG),
Pesticide Operations and Management (POM) Committee will hold a 2-day
meeting, beginning on April 22, 2013, and ending April 23, 2013. This
notice announces the location and times for the meeting and sets forth
the tentative agenda topics.

DATES: The meeting will be held on Monday, April 22, 2013, from 8:30
a.m. to 5 p.m. and 8:30 a.m. to noon on Tuesday, April 23, 2013.
    To request accommodation of a disability, please contact the person
listed under FOR FURTHER INFORMATON CONTACT, preferably at least 10
days prior to the meeting, to give EPA as much time as possible to
process your request.

ADDRESSES: The meeting will be held at EPA, One Potomac Yard (South
Bldg.), 2777 Crystal Dr., Arlington VA, 1st Floor South Conference
Room.

FOR FURTHER INFORMATION CONTACT: Ron Kendall, Field External Affairs
Division (7506P), Office of Pesticide Programs, Environmental
Protection Agency, 1200 Pennsylvania Ave. NW., Washington, DC 20460-
0001; telephone number:<PHONE_NUMBER>; fax number:<PHONE_NUMBER>;
email address<EMAIL_ADDRESS>or Grier Stayton, SFIREG Executive
Secretary, P.O. Box 466, Milford, DE 19963; telephone number: (302)
422-8152; fax<PHONE_NUMBER>; email address<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

I. General Information

A. Does this action apply to me?

    You may be potentially affected by this action if you are
interested in pesticide regulation issues affecting States and any
discussion between EPA and SFIREG on FIFRA field implementation issues
related to human health, environmental exposure to pesticides, and
insight into EPA's decision-making process. You are invited and
encouraged to attend the meetings and participate as appropriate.
Potentially affected entities may include, but are not limited to:
    Those persons who are or may be required to conduct testing of
chemical substances under the Federal Food, Drug, and Cosmetics Act
(FFDCA), or the Federal Insecticide, Fungicide, and Rodenticide Act
(FIFRA) and those who sell, distribute or use pesticides, as well as
any non-government organization.
    If you have any questions regarding the applicability of this
action to a particular entity, consult the person listed under FOR
FURTHER INFORMATION CONTACT.

B. How can I get copies of this document and other related information?

    The docket for this action, identified by docket ID number EPA-HQ-
OPP-2013-0001 is available at http://www.regulations.gov, or at the
Office of Pesticide Programs Regulatory Public Docket Center (EPA/DC),
EPA West Bldg., Rm. 3334, 1301 Constitution Ave. NW., Washington, DC
20460-0001. The Public Reading Room is open from 8:30 a.m. to 4:30
p.m., Monday through Friday, excluding legal holidays. The telephone
number for the Public Reading Room is<PHONE_NUMBER>, and the telephone
number for the OPP Docket is<PHONE_NUMBER>. Please review the visitor
instructions and additional information about the docket available at
http://www.epa.gov/dockets.

II. Tentative Agenda Topics

    1. Bee Inspection Guidance.
    2. Pesticide use/misuse in marijuana production activities that are
legal under state law where the production occurs.
    3. Insect Repellency Mark Update.
    4. EPA's Drift Reduction Technology program.
    5. National Pesticide Information Center reporting to State Lead
Agency's (SLA's) when off label use is evident.
    6. Status of the implementation of the Globally Harmonized System
(GHS) for the OSHA Hazard Communication Standard (HCS) and potential
impacts on FIFRA labeling.
    7. Labeling biocide fracking fluid--the biocide working panel.
    8. 25(b) proposed rule POM Comments.
    9. Persistent Herbicides in Compost-Update on Lab Survey.
    10. SLA enforcement cases relating to issues with non-crop
terminology.
    11. Report from Office of Civil Enforcement (OCE) on evidence
collection pilot and revisions to guidelines.
    12. Report from OCE on distributor label enforcement efforts.
    13. 25(b) action plan--identifying OPP contact and coordination of
SLA activity.

III. How can I request to participate in this meeting?

    This meeting is open for the public to attend. You may attend the
meeting without further notification.

List of Subjects

    Environmental protection.

    Dated: February 20, 2013.
Jay Ellenberger,
Acting Director, Field External Affairs Division, Office of Pesticide
Programs.
[FR Doc. 2013-05093 Filed 3-5-13; 8:45 am]
BILLING CODE 6560-50-P


[Federal Register: October 25, 2010 (Volume 75, Number 205)]
[Notices]
[Page 65537]
[DOCID:fr25oc10-136]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-63125; File No. SR-ODD-2010-02]

Canadian Derivatives Clearing Corporation; Order Approving
Accelerated Distribution of an Amended Options Disclosure Document

October 18, 2010.
    On September 28, 2010, the Canadian Derivatives Clearing
Corporation (``CDCC''), on behalf of the Bourse de Montr[eacute]al,
Inc. (``Bourse de Montr[eacute]al''), submitted to the Securities and
Exchange Commission (``Commission''), pursuant to Rule 9b-1 under the
Securities Exchange Act of 1934 (``Act''),\1\ five definitive copies of
an amended options disclosure document (``ODD'') that describes the
risks and characteristics of options traded on the Bourse de
Montr[eacute]al.\2\ The CDCC has revised the ODD to, among other
things, update the discussion of Canadian federal income tax
considerations applicable to non-residents.
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    \1\ 17 CFR 240.9b-1.
    \2\ The Commission initially reviewed the ODD in 1984. See
Securities Exchange Act Release No. 21365 (October 2, 1984), 49 FR
39400 (October 5, 1984) (File No. SR-ODD-84-1). Since then, the
Commission has reviewed several amendments to the ODD. See, e.g.,
Securities Exchange Act Release Nos. 51124 (February 2, 2005), 70 FR
6740 (February 8, 2005) (File No. SR-ODD-2004-03) (amending the ODD
to reflect, among other things, the name change from the S&P/TSE 60
Index to the S&P/TSX 60 Index and to add an Annex to the ODD setting
forth the holidays and early closings of the Bourse de
Montr[eacute]al); 44333 (May 21, 2001), 66 FR 29193 (May 29, 2001)
(File No. SR-ODD-00-04) (amending the ODD to reflect, among other
things, changes to the structure of the Canadian equity markets and
to provide a discussion of Enhanced Capital Marketing); 37569
(August 14, 1996), 61 FR 43281 (August 21, 1996) (File No. SR-ODD-
96-01) (amending the ODD to reflect, among other things, the name
change from TCO to CDCC); 29033 (April 1, 1991), 56 FR 14407 (April
9, 1991) (File No. SR-ODD-91-1) (amending the ODD to include, among
other things, references to Toronto Stock Exchange 35 Composite
Index options); 24480 (May 19, 1987), 52 FR 20179 (May 29, 1987)
(File No. SR-ODD-87-2) (amending the ODD to include, among other
things, a discussion of Government of Canada Treasury Bill Price
Index options); 22349 (August 21, 1985), 50 FR 34956 (August 28,
1985) (File No. SR-ODD-85-1) (amending the ODD to include, among
other things, a discussion of the risks and uses of stock index and
bond options); 51124 (February 1, 2005), 70 FR 6740 (February 8,
2005) (File No. SR-ODD-2004-03) (amending the ODD to include, among
other things, the CDCC's new automatic exercise parameters for
equity and bond options) and 58172 (July 16, 2008), 73 FR 42840
(July 23, 2008) (File No. SR-ODD-2008-03) (amending the ODD to
include, among other things, the CDCC's current automatic exercise
parameters for equity and bond options and to add an update to the
discussion of the treatment of adjustments in the terms of equity
options with respect to stock splits, stock dividends or other stock
distributions).
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    Rule 9b-1 under the Act provides that an options market must file
five preliminary copies of an amended ODD with the Commission at least
30 days prior to the date when definitive copies of the amended ODD are
furnished to customers, unless the Commission determines otherwise,
having due regard to the adequacy of the information disclosed and the
public interest and protection of investors.\3\
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    \3\ This provision is intended to permit the Commission either
to accelerate or extend the time period in which definitive copies
of a disclosure document may be distributed to the public.
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    The Commission has reviewed the amended ODD and finds, having due
regard to the adequacy of the information disclosed, that it is
consistent with the protection of investors and in the public interest
to allow the distribution of the amended ODD as of the date of this
order.\4\
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    \4\ Rule 9b-1 under the Act provides that the use of an ODD
shall not be permitted unless the options class to which the
document relates is the subject of an effective registration
statement on Form S-20 under the Securities Act of 1933 or is exempt
from such registration. On April 5, 2010, the Commission declared
effective the CDCC's most recent Post-Effective Amendment to its
Form S-20 registration statement. See File No. 002-69458.
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    It is therefore ordered, pursuant to Rule 9b-1 under the Act,\5\
that the distribution of the revised ODD (SR-ODD-2010-02) as of the
date of this is order, is approved.
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    \5\ 17 CFR 240.9b-1.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\6\
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    \6\ 17 CFR 200.30-3(a)(39)(i).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-26803 Filed 10-22-10; 8:45 am]
BILLING CODE 8011-01-P


Significant New Alternatives Policy Program
Fire Extinguishing and Explosion Prevention Sector
Risk Screen on Substitutes for Halon 1301
Total Flooding Systems in Normally Unoccupied Spaces
      Substitute: Dry Sprinkler Powdered Aerosol (DSPA) Fixed Generators

This risk screen does not contain Clean Air Act (CAA) Confidential Business Information (CBI) and, therefore, may be disclosed to the public.

INTRODUCTION
Ozone-depleting substances (ODS) are being phased out of production in response to a series of diplomatic and legislative efforts that have taken place over the past two decades, including the Montreal Protocol and the Clean Air Act Amendments of 1990 (CAAA).  The U.S. Environmental Protection Agency (EPA), as authorized by Section 612 of the CAAA, administers the Significant New Alternatives Policy (SNAP) Program, which identifies acceptable and unacceptable substitutes for ODS in specific end-uses based on assessment of their health and environmental impacts.

EPA's decision on the acceptability of a substitute is based on the findings of a screening assessment of potential human health and environmental risks posed by the substitute in specific applications.  EPA has already screened a large number of substitutes in many end-use applications within all of the major ODS-using sectors, including refrigeration and air conditioning, solvent cleaning, foam blowing, aerosols, fire suppression, adhesives, coatings and inks, and sterilization. The results of these risk screens are presented in a series of Background Documents that are available in EPA's docket.

The purpose of this risk screen is to supplement EPA's Background Document on the fire suppression and explosion protection sector (EPA 1994) (hereinafter referred to as the Background Document). This risk screen discusses the potential human health and environmental risks posed by Dry Sprinkler Powdered Aerosol (DSPA) generator when used as a flooding agent in normally unoccupied spaces as a replacement for Halon 1301. The proposed substitute is anticipated to be used for Class A (ordinary combustibles), B (flammable liquids and gases), and C (electrical) fires, pending UL approval. The reader is referred to the Background Document for the methodologies and assumptions used to conduct this risk screen.

DSPA generators contain a solid material in pellet form that aerosolizes upon activation.  The DSPA fixed generators are designed to suppress fires as fixed installations in enclosed areas in all industrial and commercial structures and in the transport sector (trains, trucks, cars, and ships) in normally unoccupied spaces.  The DSPA fixed generators include several models. Table 1 presents the composition of the proposed substitute, prior to activation.

          Table 1: Composition of DSPA Generator, Prior to Activation
                             Constituent (Solids)
                               Chemical Formula
                                     CAS #
                                Weight Percent
Potassium nitrate
                                     KNO3
                                   7757-79-1

Phenol formaldehyde resin
                                   C13H12O2
                                   9003-35-4

Cyanoguanidine
                                    C2H4N4
                                   461-58-5

Table 2 presents the composition of the post-activation products of the proposed substitute.

            Table 2: Composition of DSPA Generator, Post-Activation
                                Solid Particles
                               Chemical Formula
                                     CAS #
                                Weight Percent
Potassium carbonate
                                     K2CO3
                                   584-08-7

Ammonium bicarbonate
                                    NH4HCO3
                                   1066-33-7

Potassium bicarbonate
                                     KHC03
                                   298-14-6

Other potassium compounds
                                       -
                                       -

                                     Gases
                               Chemical Formula
                                     CAS #
                                Weight Percent
Nitrogen
                                      N2
                                   7732-18-5

Carbon dioxide
                                      CO2
                                   124-38-9

Water
                                      H2O
                                   7727-37-9

Other Impurities
                                       -
                                       -

  Ammonia
                                      NH3
                                   7664-41-7

  Hydrogen cyanide
                                      HCN
                                    74-90-8

  Carbon monoxide
                                      CO
                                   630-08-0

  Nitrous oxide
                                      NO
                                  10102-43-9

Total mass
                                       -
                                       -
                                    100.00

Section 2 of this risk screen summarizes the results of the risk screen for the proposed substitute.  The remainder of the risk screen is organized into the following sections:

   * Section 3: Atmospheric Assessment;
   * Section 4: Potential Health Effects
   * Section 5: Occupational Exposure Assessment;
   * Section 6: Exposure at End-Use;
   * Section 7: General Population Exposure Assessment;
   * Section 8: Volatile Organic Compound Assessment; and
   * Section 9: References.
SUMMARY OF RESULTS
DSPA fixed generators are recommended for SNAP approval as a flooding agent in normally unoccupied spaces. Given that proper training will be provided to personnel and that appropriate personal protective equipment (PPE) and proper procedures according to the MSDS (including provisions of adequate ventilation) will be used during manufacturing and disposal activities, no significant risks to workers or the general population is anticipated. In addition, the risk screen indicates that the use of the proposed substitute will be less harmful to the atmosphere than the continued use of Halon 1301 and than other substitutes used in this sector, such as HFC-227ea and HFC-125.

Limited end-use, occupational exposure and hazard analyses were conducted since this proposed substitute is recommended only for use in normally unoccupied areas.  Likewise, no consumer exposure and risk screening analyses were conducted since this proposed substitute is intended only for total-flooding applications, which are not used by consumers.  Information provided by the submitter, summarized in Section 5, indicates that DSPA fixed generators are not likely to pose a significant risk to workers during the manufacture, installation, maintenance, and cleanup activities.
ATMOSPHERIC ASSESSMENT
This section presents an assessment of the potential risks to atmospheric integrity posed by the use of DSPA fixed generators as a flooding agent. The ozone depletion potential (ODP), global warming potential (GWP), and atmospheric lifetime (ALT) of the proposed substitute are presented in Table 3. Pre-activation, DSPA generator contains no Class I or Class II ODS, nor any compounds with measured global warming potential (GWP). Some of the post-activation products and impurities (carbon dioxide, carbon monoxide, and nitrous oxide) have a measurable atmospheric impact; however, only very small concentrations of those constituents are formed upon activation of DSPA generators and the comparative atmospheric impact (e.g., ODP and GWP values of these compounds) to Halon 1301, HCFC Blend A (NAF S III(R)), HFC-227ea, and HFC-125 is much lower. Therefore, the use of DSPA generator will be less damaging to the atmosphere than continued use of Halon 1301, HCFC Blend A, or other substitutes.

Table 3. Atmospheric Impacts of DSPA Generator Components Compared to Halon 1301 and Other Flooding Agents
                          Pre-Activation Constituents
                                      ODP
                                      GWP
                                      ALT
Potassium nitrate
                                       0
                                       0
                                       0
Phenol formaldehyde resin
                                       0
                                       0
                                       0
Cyanoguanidine
                                       0
                                       0
                                       0
                           Post-Activation Products
                                      ODP
                                      GWP
                                      ALT
Potassium carbonate
                                       0
                                       0
                                       0
Ammonium bicarbonate
                                       0
                                       0
                                       0
Potassium bicarbonate
                                       0
                                       0
                                       0
Other potassium compounds
                                       0
                                      NA
                                      NA
Nitrogen
                                       0
                                       0
                                       0
Carbon dioxide
                                       0
                                       1
                                   5-200[a]
Water
                                       0
                                       0
                                       0
Ammonia
                                       0
                                     0[b]
                                  Few days[b]
Hydrogen cyanide
                                       0
                                       0
                                 5-6 months[d]
Carbon monoxide
                                       0
                                     3[e]
                               Several months[e]
Nitrous oxide
                                   0.017[b]
                                    298[c]
                                    114[c]
Halon 1301
                                     16[b]
                                   7,140[c]
                                     65[c]
HCFC Blend A (NAF S III(R))
                                   0.036[f]
                                    1,444 f
                                     NA[g]
HFC-227ea
                                       0
                                   3,220[c]
                                    34.2[c]
HFC-125
                                       0
                                   3,500[c]
                                     29[c]
[a] IPCC 3[rd] Assessment Report (Houghton et al.2001)
[b]Scientific Assessment of Ozone Depletion 2010 (WMO 2011)
[c] IPCC 4th Assessment Report (Forster et al. 2007)
[d] JACC (2007)
[e] MacCarty, et. al. (2007)
[f] Safety Hitech (2012)
[g] NA= not available. Atmospheric lifetimes are not given for blends because the components separate in the atmosphere. The ALT for HCFC-123 is 1.3 years, HCFC-22 is 12 years, HCFC-124 is 5.8 years, and D-limonene ranges from less than a minute to a few hours (IPCC 4th Assessment Report [Forster et al. 2007] and WHO 1998).
POTENTIAL HEALTH EFFECTS
According to the MSDS, exposure to DSPA generator may result in irritation if inhalation, ingestion, skin contact, or eye contact occurs. According to the MSDS for DSPA generator, if the contents of DSPA generator are inhaled, person(s) should be immediately removed and exposed to fresh air. In accordance with the MSDS, EPA further recommends that if breathing is difficult, person(s) be given oxygen, provided a qualified operator is present, and medical attention be sought. Rescuers should not attempt to retrieve victims of exposure to DSPA generator without adequate PPE. A NIOSH/CDC-approved N99 respirator should be worn to retrieve victims of exposure to DSPA generator. If DSPA generator is activated, exposure to aerosol suppression agent through inhalation may cause temporary, mild irritation of mucous membrane. If ingestion occurs, person(s) should wash out mouth with plenty of water and not induce vomiting. Medical advice should be sought. In case of dermal exposure, the MSDS recommends that person(s) immediately wash the affected area with water and remove all contaminated clothing. If ocular exposure to DSPA generator occurs, contact lenses, if worn by exposed person(s), should be removed. The MSDS for DSPA recommends that person(s) immediately flush the eyes, including under the eyelids, with copious amounts of water for 15 minutes (DSPA.nl 2012b). When the PPE recommendations outlines in the MSDS for DSPA generators and Section 5 of this risk screen are followed, these potential health effects are unlikely to occur.
OCCUPATIONAL EXPOSURE ASSESSMENT
The potential for occupational exposure to constituents in DSPA generator are examined in this section.  Specific guidance has been included regarding precautionary measures, PPE, settling rates and re-entry time for occupational exposure during manufacture, installation, maintenance, and cleanup. The use of the exposure controls and adherence with the appropriate occupational safety guidelines discussed in the following sections and the MSDS for DSPA are sufficient to ensure that the manufacture, installation, maintenance, and cleanup of DSPA does not pose a significant risk to human health. Further, the generator unit consists of solid blocks of DSPA constituents that are not friable and are contained in rigid steel casing; as a result, workers have no direct contact with the proposed substitute, and the material is prevented from coming into contact with combustible materials during normal transport, storage and handling. In addition, exposure to DSPA generator's raw materials during manual processing at manufacture is expected to be in the solid form, with any possible inhalation or dermal exposures considered to be negligible (DSPA.nl 2011a). Further, because safety and precautionary measures listed in the MSDS for the proposed substitute are to be followed, excessive exposure to workers is unlikely. For measures designed to minimize the hazards associated with a specific constituent, the constituent's MSDS should be referenced.
   0.1.       Occupational Exposure during Manufacture
DSPA generator is not expected to pose a significant risk to workers during manufacture due to the use of an automated production process.  These workers wear PPE, including suits, safety glasses, and respirators.  The entire manufacturing space is ventilated with a local exhaust system to reduce airborne exposure of pyrotechnical compound.

Currently, there are not any United States-based manufacturing facilities for this proposed substitute and none are planned.  The final product available in United States is the rigid steel case containing solid blocks of the extinguishing material. If production were to occur in the United States, the proposed substitute's MSDS should be referenced.
   0.2.       Occupational Exposure during Installation and Maintenance
The extinguishing application density of DSPA generators systems is 50 g/m[3] for all models.  Therefore, assuming a safety factor of 1.3, the design application density is 65 g/m[3].  The post-activation products include both gaseous and particulate components, which could cause slight respiratory irritation if inhaled (DSPA.nl 2011b, EPA 1994).

Occupational exposure may occur during installation and maintenance of DSPA generators if an accidental deployment of a fixed generator occurs. In the event of an accidental discharge, the room should be immediately evacuated and the instructions listed in the MSDS for DSPA generator should be followed (DSPA.nl 2012b). Worker exposure is unlikely because NIOSH/CDC-approved N99 respirator is expected to be worn.
   0.3.       Post-activation Cleanup
After DSPA generator is activated, the aerosol is released into the air significantly reducing visibility until 30 to 40 minutes, when the post-activation particles settle down.  According to the submitter and the MSDS for DSPA generators, workers should not enter the space following discharge until all particles have settled and been ventilated and the gases released by the system have dissipated.  If workers must enter the space before it has been ventilated, they should wear protective clothing, goggles, and NIOSH/CDC-approved N99 respirator.  It is unlikely that anyone would enter the space inadvertently after discharge, as visibility in the space would be significantly reduced, and signage (indicating that the area should not be entered after discharge until ventilation) should be present at the entrances and exits of all protected spaces.  After 2 hours the air should be refreshed using a ventilator. The settled aerosol particles can be cleaned up as soon as the structure is totally ventilated or after 24 hours, whichever occurs first (DSPA.nl 2011c).  In accordance with the MSDS, settled particles are to be collected by hand (e.g., with a dustpan and duster) or with a vacuum cleaner.   The waste should be collected in suitable drums for disposal according to federal, state, and local regulations and the area should be washed clean with plenty of water.  After activating the generator, slight irritation may occur to the skin due to an increase of the pH value. Safety glasses and a NIOSH/CDC-approved N99 respirator, in accordance with 42 CFR Part 84, should be worn by individuals participating in cleanup procedures because cleanup operations are likely to result in the re-circulation of dust particles. Workers cleaning a major spillage should wear personal protective clothing (suitable gloves and filter mask FFP-2 if dust is formed) DSPA.nl 2011c).  By adhering to safety guidelines mentioned above and in Section 4, the potential for excessive worker exposures to DSPA during post-activation cleanup will be unlikely.
EXPOSURE AT END-USE
DSPA generator is not expected to pose significant risk to end-users when used as a flooding agent in normally unoccupied spaces. For total flooding applications in normally unoccupied spaces, exposure at end-use is only evaluated in the event of an accidental discharge rather than discharge in the occurrence of a fire.  In the event of an accidental discharge at end-use, all personnel should wear NIOSH/CDC-approved N99 respirator and allow adequate time for the aerosol particles to settle and the air to be ventilated before re-entering the protected space, as outlined in section 5.2.  Individuals responsible for cleaning up after inadvertent release of DSPA are expected to follow the cleanup procedures outlined in Section 5.3.
GENERAL POPULATION EXPOSURE ASSESSMENT
DSPA generator is not expected to cause a significant risk to human health in the general population when used as a flooding agent in normally unoccupied spaces. The generator consists of solid blocks that are not friable and are contained in rigid steel casing that would not release into the environment unless activated. As discussed in the Background Document, the physicochemical properties of the majority of halon substitutes make it unlikely that the substitutes would be released to surface water as a result of use. In the case of DSPA generator, it is expected that all of the constituents would rapidly aerosolize during expulsion from the container and then settle as a dust on surfaces within the protected space (as opposed to becoming airborne and settling on a nearby stream). After settling, cleanup would involve washing or rinsing of surfaces. Because all federal, state, and local regulations pertaining to waste disposal are followed, no release to the environment is expected.

VOLATILE ORGANIC COMPOUND ASSESSMENT
Of the pre- and post-activation constituents of DSPA generator, hydrogen cyanide (a post-activation product) is the only compound considered to be a VOC that has not been exempted as a volatile organic compound (VOC) under the CAA (40 CFR 51.100(s)). Phenol formaldehyde resin (a pre-activation constituent) is also considered a VOC, but is a solid, and therefore not a concern. All remaining constituents are not considered to be VOCs. Hydrogen cyanide constitutes a very small percent of the post-activation products by weight. In general, VOC emissions should be sufficiently controlled through regulations and standard industry practices. VOC emissions from the production of total flooding systems charged with DSPA are controlled through standard industry practices, and as such, emissions from manufacture of units are likely to be minimal.  An assessment was performed to compare the annual VOC emissions from use of DSPA in total flooding systems produced in one year to other anthropogenic sources of VOC emissions.  Assuming that 100 percent of DSPA produced in one year were to be used in fire occurrences and thus released to the atmosphere (extremely unlikely), only 0.04 MT of VOCs would be emitted, which is approximately equal to 8.6x10[-]6 percent of the annual VOC emissions caused by fires, or only about 1.5x10[-]6 percent of annual VOC emissions caused by highway vehicles (a major source of hydrogen cyanide emissions).  In order to estimate more realistic release rates, data for fire occurrences where DSPA may be used would be needed.  In the absence of this data, a 100 percent release assumption was made. Even at this unlikely release rate, the VOC emissions from use of DSPA are several orders of magnitude lower than other anthropogenic VOC emissions; therefore, the environmental impacts of these VOCs are not considered a significant risk.

REFERENCESDSPA.NL. 2011a.  SNAP Submission to EPA for DSPA generator.  April 28, 2011.
DSPA.nl . 2011b.  "Response to Incomplete SNAP Submission for DSPA generator." July 28, 2011.
 DSPA.nl. 2011c.  "Response to Incomplete SNAP Submission for DSPA generator." September 7, 2011.
DSPA.nl. 2012a. "Response to Incomplete SNAP Submission for DSPA generator." May 16, 2012.
DSPA.nl. 2012b. "Material Safety Data Sheet: DSPA `Fixed Installation' Generator." March 27, 2012.
EPA 1994. "Risk Screen on the Use of Substitutes for Class I Ozone-depleting Substances:  Fire Extinguishing and Protection (Halon Substitutes)," U.S. Environmental Protection Agency, March 1994.
EPA 2008. 2005 National Emissions Inventory Data & Documentation. Inventory Data: 42 Category Summaries. Last updated 6 July 2010. Accessed 20 September 11. Available online at <http://www.epa.gov/ttn/chief/net/2005inventory.html#inventorydata>.
EPA 2009.  National Emissions Inventory (NEI) Air Pollutant Emissions Trends Data and Estimation Procedures.1970  -  2008 Average Annual Emissions, All Criteria Pollutants.  Last updated 09 June 2009. Accessed 20 September 11. Available online at <http://www.epa.gov/ttn/chief/trends/index.html#tables>.
EPA 2011. The National Emissions Inventory. 2008 National Inventory Data. Last updated 19 July 11. Accessed 20 September 11. Available online at <http://www.epa.gov/ttn/chief/net/2008inventory.html>.
JACC (2007). Cyanides of Hydrogen, Sodium and Potassium, and Acetone Cyanohydrin (CAS No. 74-90-8, 143-33-9. 151-50-8 and 75-86-5), Volumes I and II. November 2007. Available online at:<http://www.ecetoc.org/index.php?mact=MCSoap,cntnt01,details,0&cntnt01by_category=3&cntnt01order_by=Number%20Desc&cntnt01template=display_list_v2&cntnt01display_template=display_details_v2&cntnt01document_id=125&cntnt01returnid=91>
MacCarty, Nordica, Damon Ogle, Dean Still, Dr. Tami Bond, Christoph Roden, Dr. Bryan Willson. (2007). Laboratory Comparison of the Global-Warming Potential of Six Categories of Biomass Cooking Stoves. Available online at: <http://www.scscertified.com/lcs/docs/Global_warming_full_9-6-07.pdf>

OSHA.  1999.  OSHA Technical Manual.  Department of Labor.  Occupational Safety & Health Administration.  January 20, 1999.  Available online at <http://www.osha.gov/dts/osta/otm/otm_toc.html>.
Safety Hitech, 2012. NAF S III(R) Fire Extinguishing Agent. Available online at: http://www.safetyhitech.com/en/products/naf-fire-ext-agents/naf-s-iiii


[Federal Register: August 28, 2008 (Volume 73, Number 168)]
[Notices]
[Page 50803]
[DOCID:fr28au08-49]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Project No. 12626-001]

Northern Illinois Hydropower, LLC; Notice of Intent To File
License Application, Filing of Pre-Application Document, and Approval
of Use of the Traditional Licensing Process

August 21, 2008.
    a. Type of Filing: Notice of Intent to File License Application and
Request to Use the Traditional Licensing Process.
    b. Project No.: 12626-001.
    c. Dated Filed: July 16, 2008.
    d. Submitted By: Northern Illinois Hydropower, LLC.
    e. Name of Project: Dresden Island Hydroelectric Project.
    f. Location: The project would be located at the U.S. Corps of
Engineers Dresden Island Lock and Dam, on the Illinois River in Grundy
County, Illinois.
    g. Filed Pursuant to: 18 CFR 5.3 of the Commission's regulations.
    h. Applicant Contact: Damon Zdunich, President, Northern Illinois
Hydropower, LLC, 801 Oakland Avenue, Joliet, IL 60435,<PHONE_NUMBER>.
    i. FERC Contact: Tom Dean,<PHONE_NUMBER>.
    j. Northern Illinois Hydropower, LLC filed its request to use the
Traditional Licensing Process on July 16, 2008. Northern Illinois
Hydropower, LLC filed public notice of its request on August 4, 2008.
In a letter dated August 20, 2008, the Director of the Office of Energy
Projects approved Northern Illinois Hydropower, LLC's request to use
the Traditional Licensing Process.
    k. With this notice, we are initiating informal consultation with:
(a) the U.S. Fish and Wildlife Service under section 7 of the
Endangered Species Act; and (b) the Illinois State Historic
Preservation Officer, as required by section 106, National Historical
Preservation Act, and the implementing regulations of the Advisory
Council on Historic Preservation at 36 CFR 800.2.
    l. Northern Illinois Hydropower, LLC filed a Pre-Application
Document (PAD; including a proposed process plan and schedule) with the
Commission, pursuant to 18 CFR 5.6 of the Commission's regulations.
    m. A copy of the PAD is available for review at the Commission in
the Public Reference Room or may be viewed on the Commission's Web site
(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 at
<EMAIL_ADDRESS>or toll free at 1-866-208-3676, of for TTY,
(202) 502-8659. A copy is also available for inspection and
reproduction at the address in paragraph h.
    Register online at http://ferc.gov/docs-filing/esubscription.asp to
be notified via e-mail of new filing and issuances related to this or
other pending projects. For assistance, contact FERC Online Support.

Kimberly D. Bose,
Secretary.
[FR Doc. E8-19932 Filed 8-27-08; 8:45 am]

BILLING CODE 6717-01-P


Docket Numbers OAR 2003   0048 ( Electronic) and A 98 44 ( Legacy)

The document National Emissions Standards for Hazardous Air Pollutants for Wood Building Products ( Surface Coating)   Background Information for Final Standards: Summary of Public Comments and Responses, EPA 453/ R 03 003, January, 2003 is filed in EPA Docket No. A 97 52 as Docket Item No. V C 01.


[Federal Register Volume 80, Number 161 (Thursday, August 20, 2015)]
[Notices]
[Pages 50685-50689]
[FR Doc No: 2015-20546]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75702; File No. SR-Phlx-2015-68]

Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change Relating to
Customer Rebate Program

August 14, 2015.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on August 3, 2015, NASDAQ OMX PHLX LLC (``Phlx'' or ``Exchange'') filed
with the Securities and Exchange Commission (``SEC'' or ``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.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 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 pricing in section B, entitled
``Customer Rebate Program,'' \3\ of the Pricing Schedule. In
particular, the Exchange proposes to: (i) Indicate that Category A
rebates for certain Customer Simple Orders in Penny Pilot \4\ and non-
Penny Pilot Options will increase specifically for Tiers 3, 4, and 5;
(ii) establish new Category B for rebates for certain electronic
Customer PIXL\SM\ \5\ Orders; (iii) rename Category B to Category C
regarding certain electronic Complex \6\ and Complex PIXL \7\ Orders;
and (iv) update and clarify the explanatory notes applicable to
Categories A, B, and C to match the proposed changes.
---------------------------------------------------------------------------

    \3\ The term ``Customer'' applies to any transaction that is
identified by a member or member organization for clearing in the
Customer range at The Options Clearing Corporation (``OCC'') which
is not for the account of broker or dealer or for the account of a
``Professional'' (as that term is defined in Rule 1000(b)(14).
    \4\ The Penny Pilot was established in January 2007 and was last
extended in 2015. See Securities Exchange Act Release Nos. 55153
(January 23, 2007), 72 FR 4553 (January 31, 2007) (SR-Phlx-2006-74)
(notice of filing and approval order establishing Penny Pilot); and
75286 (June 24, 2015) (SR-Phlx-2015-54) (notice of filing and
immediate effectiveness extending the Penny Pilot through June 30,
2016). Non-Penny Pilot Options are options other than Penny Pilot
Options listed on the Exchange (e.g. AAPL, BAC, EEM, FB, FXI, IWM,
QQQ, TWTR, VXX and XLF), which can be found at http://www.nasdaqtrader.com/Micro.aspx?id=phlx.
    \5\ PIXL is the Exchange's price improvement mechanism known as
Price Improvement XL or PIXL. See Rule 1080(n).
    \6\ A Complex Order is any order involving the simultaneous
purchase and/or sale of two or more different options series in the
same underlying security, priced at a net debit or credit based on
the relative prices of the individual components, for the same
account, for the purpose of executing a particular investment
strategy. Furthermore, a Complex Order can also be a stock-option
order, which is an order to buy or sell a stated number of units of
an underlying stock or Exchange Traded Fund (``ETF'') coupled with
the purchase or sale of options contract(s). See Exchange Rule 1080,
Commentary .07(a)(i).
    \7\ A transaction resulting from an order that was
electronically delivered utilizes Phlx XL. See Exchange Rules 1014
and 1080. Electronically delivered orders do not include orders
transacted on the Exchange floor. A transaction resulting from an
order that is non-electronically-delivered is represented on the
trading floor by a floor broker. See Exchange Rule 1063. All orders
are either electronically or non-electronically delivered.
---------------------------------------------------------------------------

    The text of the proposed rule change is available on the Exchange's
Web site at http://nasdaqomxphlx.cchwallstreet.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 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 filing is to amend pricing in section B,
entitled ``Customer Rebate Program,'' of the Pricing Schedule. In
particular, the Exchange proposes to: (i) Indicate that Category A
rebates for certain Customer Simple Orders in Penny Pilot and non-Penny
Pilot Options will increase specifically for Tiers 3, 4, and 5; (ii)
establish new Category B for rebates for certain electronic Customer
PIXL Orders; (iii) rename Category B to Category C regarding certain
electronic Complex and Complex PIXL Orders; and (iv) update and clarify
the explanatory notes applicable to Categories A, B, and C to match the
proposed changes. The Exchange proposes these amendments in order to
more clearly delineate how rebates apply to different types of Customer
orders: Customer Simple Orders (Category A), Customer PIXL Orders
(Category B), and Customer Complex Orders and Customer Complex PIXL
Orders (Category C).
Section B--Customer Rebate Program
    Currently, the Exchange has a Customer Rebate Program consisting of
five Tiers of Customer Rebates on two categories, A and B, of
transactions. A Phlx member qualifies for a certain rebate Tier based
on the percentage of total national customer volume in Multiply Listed
equity and ETF options classes, excluding SPY \8\ options that it
transacts monthly on Phlx. The Exchange calculates Customer volume in
Multiply Listed Options (including SPY options) by totaling
electronically-delivered and executed volume, excluding volume
associated with electronic Qualified Contingent Cross (``QCC'')
Orders,\9\ as defined in Exchange Rule 1080(o).\10\
---------------------------------------------------------------------------

    \8\ SPY is the SPDR[supreg] S&P 500[supreg] ETF Trust.
S&P[supreg], S&P 500[supreg], SPDR[supreg], and Standard &
Poor's[supreg] are registered trademarks of Standard &
Poor's[supreg] Financial Services LLC.
    \9\ A QCC Order is comprised of an order to buy or sell at least
1000 contracts that is identified as being part of a qualified
contingent trade, as that term is defined in Rule 1080(o)(3),
coupled with a contra-side order to buy or sell an equal number of
contracts. The QCC Order must be executed at a price at or between
the National Best Bid and Offer and be rejected if a Customer order
is resting on the Exchange book at the same price. A QCC Order shall
only be submitted electronically from off the floor to the PHLX XL
II System. See Rule 1080(o). See also Securities Exchange Act
Release No. 64249 (April 7, 2011), 76 FR 20773 (April 13, 2011) (SR-
Phlx-2011-47) (a rule change to establish a QCC Order to facilitate
the execution of stock/option Qualified Contingent Trades (``QCTs'')
that satisfy the requirements of the trade through exemption in
connection with Rule 611(d) of the Regulation NMS).
    \10\ Members and member organizations under common ownership may
aggregate their Customer volume for purposes of calculating the
Customer Rebate Tiers and receiving rebates. Common ownership means
members or member organizations under 75% common ownership or
control. See Preface to Pricing Schedule.
---------------------------------------------------------------------------

    The Exchange now has rebate categories Category A and Category B to
cover all rebates pursuant to the

Customer Rebate Program. The Exchange proposes to add new Category B.
This allows the Exchange to more clearly delineate how rebates apply to
three types of orders: Customer Simple Orders, which will be covered in
Category A; Customer PIXL Orders, which will be covered in Category B;
and Customer Complex Orders and Customer Complex PIXL Orders, which
will be covered in Category C.
    Currently, a Category A rebate is paid to members executing
electronically-delivered Customer Simple Orders in Penny Pilot Options
and Customer Simple Orders in non-Penny Pilot Options in Section II
symbols.\11\ Rebates are paid on Customer PIXL Orders in Section II
symbols that execute against non-Initiating Order interest. In the
instance where member organizations qualify for Tier 4 or higher in the
Customer Rebate Program, Customer PIXL Orders that execute against a
PIXL Initiating Order are paid a rebate of $0.14 per contract. Rebates
on Customer PIXL Orders are currently capped at 4,000 contracts per
order for Simple PIXL Orders.
---------------------------------------------------------------------------

    \11\ This refers to section II of the Pricing Schedule.
---------------------------------------------------------------------------

    Currently, a Category B rebate is paid to members executing
electronically-delivered Customer Complex Orders in Penny Pilot Options
and non-Penny Pilot Options in section II symbols. Rebates are paid on
Customer PIXL Complex Orders in section II symbols that execute against
non-Initiating Order interest. Customer Complex PIXL Orders that
execute against a Complex PIXL Initiating Order will not be paid a
rebate under any circumstances. The Category B rebate will not be paid
when an electronically-delivered Customer Complex Order, including a
Customer Complex PIXL Order, executes against another electronically-
delivered Customer Complex Order. Rebates on Customer PIXL Orders are
capped at 4,000 contracts per order leg for Complex PIXL Orders.
Moreover, the Exchange will pay a $0.02 per contract Category A rebate
and a $0.03 per contract Category B rebate in addition to the
applicable Tier 2 and 3 rebate to a Specialist \12\ or Market Maker
\13\ or its member or member organization affiliate under Common
Ownership provided the Specialist or Market Maker has reached the
Monthly Market Maker Cap, as defined in section II.
---------------------------------------------------------------------------

    \12\ A ``Specialist'' is an Exchange member who is registered as
an options specialist pursuant to Rule 1020(a).
    \13\ A ``Market Maker'' includes Registered Options Traders
(Rule 1014(b)(i) and (ii)), which includes Streaming Quote Traders
(see Rule 1014(b)(ii)(A)) and Remote Streaming Quote Traders (see
Rule 1014(b)(ii)(B)).
---------------------------------------------------------------------------

    Now, the rebates in all Tiers (Category A and Category B) are as
follows:

----------------------------------------------------------------------------------------------------------------
                                                    Percentage thresholds of
                                                   national customer volume in
             Customer rebate tiers               multiply-listed equity and ETF     Category A      Category B
                                                 options classes, excluding SPY
                                                        options (monthly)
----------------------------------------------------------------------------------------------------------------
Tier 1........................................  0.00%-0.60%.....................           $0.00           $0.00
Tier 2........................................  Above 0.60%-1.10%...............           *0.10           *0.17
Tier 3........................................  Above 1.10%-1.60%...............           *0.12           *0.17
Tier 4........................................  Above 1.60%-2.50%...............            0.16            0.22
Tier 5........................................  Above 2.50%.....................            0.17            0.22
----------------------------------------------------------------------------------------------------------------

    Several notes now explain the rebate schedule. Currently, there is
an explanatory note regarding Category A,\14\ an explanatory note
regarding Category B,\15\ and also an asterisked note that applies to
certain sections of Category A and Category B.\16\ These are discussed
below.
---------------------------------------------------------------------------

    \14\ Category A: Rebate will be paid to members executing
electronically-delivered Customer Simple Orders in Penny Pilot
Options and Customer Simple Orders in Non-Penny Pilot Options in
Section II symbols. Rebate will be paid on Customer PIXL Orders in
Section II symbols that execute against non-Initiating Order
interest. In the instance where member organizations qualify for
Tier 4 or higher in the Customer Rebate Program, Customer PIXL
Orders that execute against a PIXL Initiating Order will be paid a
rebate of $0.14 per contract. Rebates on Customer PIXL Orders will
be capped at 4,000 contracts per order for Simple PIXL Orders.
    \15\ Category B: Rebate will be paid to members executing
electronically-delivered Customer Complex Orders in Penny Pilot
Options and Non-Penny Pilot Options in Section II symbols. Rebate
will be paid on Customer PIXL Complex Orders in Section II symbols
that execute against non-Initiating Order interest. Customer Complex
PIXL Orders that execute against a Complex PIXL Initiating Order
will not be paid a rebate under any circumstances. The Category B
Rebate will not be paid when an electronically-delivered Customer
Complex Order, including Customer Complex PIXL Order, executes
against another electronically-delivered Customer Complex Order.
Rebates on Customer PIXL Orders will be capped at 4,000 contracts
per order leg for Complex PIXL Orders.
    \16\ *The Exchange will pay a $0.02 per contract Category A
rebate and a $0.03 per contract Category B rebate in addition to the
applicable Tier 2 and 3 rebate to a Specialist or Market Maker or
its member or member organization affiliate under Common Ownership
provided the Specialist or Market Maker has reached the Monthly
Market Maker Cap, as defined in section II.
---------------------------------------------------------------------------

    As proposed, the rebates in all Tiers (Category A, Category B, and
Category C) are as follows:

----------------------------------------------------------------------------------------------------------------
                                        Percentage thresholds of
                                        national customer volume
                                           in multiply-listed
         Customer rebate tiers           equity and ETF options     Category A      Category B      Category C
                                         classes, excluding SPY
                                            options (monthly)
----------------------------------------------------------------------------------------------------------------
Tier 1................................  0.00%-0.60%.............           $0.00           $0.00           $0.00
Tier 2................................  Above 0.60%-1.10%.......           *0.10           *0.10           *0.17
Tier 3................................  Above 1.10%-1.60%.......            0.15           *0.12           *0.17
Tier 4................................  Above 1.60%-2.50%.......            0.20            0.16            0.22
Tier 5................................  Above 2.50%.............            0.21            0.17            0.22
----------------------------------------------------------------------------------------------------------------

    The Exchange proposes in Category A to change the Tier 3 Customer
Rebate from $0.12 to $0.15.\17\ The Exchange also proposes to change
the Tier 4 Customer Rebate from $0.16 to $0.20, and the Tier 5 Customer
Rebate from $0.17 to $0.21. The Exchange believes that the proposed
increased Category A rebates will continue to encourage members to send
Customer liquidity to Phlx. The Exchange believes that the proposed
three or four cent rebate increase in Tiers 3, 4, and 5 is reasonable
and fair, and retains the existing structure of increasingly higher
rebates in increasingly higher Tiers to encourage members to send
greater liquidity while giving members an

opportunity to receive higher Customer rebates. Moreover, as stated in
the explanatory note to Category A, rebates will continue to be paid to
members executing electronically-delivered Customer Simple Orders in
Penny Pilot Options and Customer Simple Orders in Non-Penny Pilot
Options in section II symbols. The remaining provisions in the Category
A explanatory note regarding Customer PIXL Orders (Customer PIXL Orders
that execute against a PIXL Initiating Order are paid a rebate of $0.14
per contract, and rebates on Customer PIXL Orders are capped at 4,000
contracts per order for Simple PIXL Orders) are simply moved to
proposed Category B.
---------------------------------------------------------------------------

    \17\ The Exchange notes that the asterisked note will continue
to apply to Tier 2, but not to Tier 3, of Category A. It will also
continue to apply to Tiers 2 and 3 of Categories B and C.
---------------------------------------------------------------------------

    The Exchange proposes new Category B regarding Customer PIXL orders
that are not complex orders (these are covered in Category C). The
proposed Tiers in Category B are exactly like the current Tiers in
Category A. Thus, the proposed Category B Tiers include Tier 1 at
$0.00, Tier 2 at $0.10, Tier 3 at $0.12, Tier 4 at $0.16, and Tier 5 at
$0.17. In addition, as noted the Exchange is re-numbering the last two
sentences of the explanatory note now applicable to Category A so that
it becomes the new note applicable to Category B. This new note will
state that a rebate will be paid on Customer PIXL Orders in Section II
symbols that execute against non-Initiating Order interest. In the
instance where member organizations qualify for Tier 4 or higher in the
Customer Rebate Program, Customer PIXL Orders that execute against a
PIXL Initiating Order will be paid a rebate of $0.14 per contract.
Rebates on Customer PIXL Orders will be capped at 4,000 contracts per
order for Simple PIXL Orders. The addition of Category B establishes
three different Categories for three different types of orders. This
allows the Exchange to more clearly delineate how rebates apply to
three types of orders: Customer Simple Orders that will be dealt with
in Category A, Customer PIXL Orders that will be dealt with in Category
B, and Customer Complex Orders and Customer Complex PIXL Orders that
will be dealt with in Category C. Moreover, the Tiers in Category B, as
also the explanatory note, are not new but rather are simply taken
directly from current Category A. And, as discussed below, the current
explanatory note regarding Category B, which now discusses Complex
Orders, is moved to Category C.
    Proposed Category C is simply current Category B that is re-named
Category C. There are no changes as Category B becomes Category C.
Thus, the Category C proposed Tiers include Tier 1 at $0.00, Tier 2 at
$0.17, Tier 3 at $0.17, Tier 4 at $0.22, and Tier 5 at $0.22. As
discussed, all of the Tiers in Category C apply to Customer Complex
Orders and Customer Complex PIXL Orders only. In addition, the current
Category B explanatory note is re-named to Category C so that as
proposed it reads as follows: Rebate will be paid to members executing
electronically-delivered Customer Complex Orders in Penny Pilot Options
and Non-Penny Pilot Options in Section II symbols. Rebate will be paid
on Customer PIXL Complex Orders in Section II symbols that execute
against non-Initiating Order interest. Customer Complex PIXL Orders
that execute against a Complex PIXL Initiating Order will not be paid a
rebate under any circumstances. The Category C Rebate will not be paid
when an electronically-delivered Customer Complex Order, including
Customer Complex PIXL Order, executes against another electronically-
delivered Customer Complex Order. Rebates on Customer PIXL Orders will
be capped at 4,000 contracts per order leg for Complex PIXL Orders.
    Finally, the asterisked explanatory note, which currently applies
to Categories A and B but does not apply to category C as it currently
does not exist, will be amended to properly reflect all three
Categories. This note discusses certain rebates in addition to the
applicable Tier 2 and Tier 3 rebate to a Specialist or Market Maker or
its member or member organization affiliate under Common Ownership. The
portion of the note that now applies to Category A only will be
expanded to Category A and B; and the portion of the note that now
applies to Category B will apply to new Category C. Thus, the
asterisked note would read as follows: The Exchange will pay a $0.02
per contract Category A and B rebate and a $0.03 per contract Category
C rebate in addition to the applicable Tier 2 and 3 rebate to a
Specialist or Market Maker or its member or member organization
affiliate under Common Ownership provided the Specialist or Market
Maker has reached the Monthly Market Maker Cap, as defined in section
II. The Exchange believes that, similarly to the other proposed
changes, this adds clarity to the proposed new three-Category rebate
structure where each Category applies to a different type of Customer
Order.\18\
---------------------------------------------------------------------------

    \18\ Id.
---------------------------------------------------------------------------

    The Exchange believes that by making the proposed changes,
clarifying the rebate structure, and increasing certain rebates, the
Exchange will continue to encourage market participants to direct a
greater number of Customer orders to the Exchange.
2. Statutory Basis
    The Exchange believes that its proposal to amend the Pricing
Schedule is consistent with section 6(b) of the Act \19\ in general,
and furthers the objectives of section 6(b)(4) and (b)(5) of the Act
\20\ in particular, in that it provides for the equitable allocation of
reasonable dues, fees and other charges among members and issuers and
other persons using any facility or system which Phlx operates or
controls, and is not designed to permit unfair discrimination between
market participants to whom the Exchange's fees and rebates are
applicable.
---------------------------------------------------------------------------

    \19\ 15 U.S.C. 78f(b).
    \20\ 15 U.S.C. 78f(b)(4), (5).
---------------------------------------------------------------------------

Section B--Customer Rebates
    The Exchange believes that its proposal in Category A to change the
Tier 3 Customer Rebate from $0.12 to $0.15, the Tier 4 Customer Rebate
from $0.16 to $0.20, and the Tier 5 Customer Rebate from $0.17 to $0.21
is reasonable. These proposed changes will allow the Exchange to
continue to attract Customer liquidity to the Exchange. Customer orders
bring valuable liquidity to the market, which liquidity benefits other
market participants. Customer liquidity benefits all market
participants by providing more trading opportunities, which attracts
Specialists and Market Makers. An increase in the activity of these
market participants in turn facilitates tighter spreads, which may
cause an additional corresponding increase in order flow from other
market participants. The Exchange believes that the proposed increased
Category A rebates will continue to encourage members to send Customer
liquidity to Phlx despite moving to Category B the cap on PIXL Complex
Order rebates at the proposed 4,000 contracts per order leg. The
Exchange believes that the proposed increase of three or four cents is
reasonable. Additionally, the CBOE has similar [sic] rebates.\21\
Similarly, the Exchange believes that moving the cap regarding Customer
PIXL Orders from Category A to proposed Category B, which deals with
Customer PIXL Orders, is likewise reasonable under the three-Category
structure according to

Customer order type. Category A rebates will continue to be paid to
members executing electronically-delivered Customer Simple Orders in
Penny Pilot Options and Customer Simple Orders in Non-Penny Pilot
Options in section II symbols.
---------------------------------------------------------------------------

    \21\ CBOE's VIP credit for certain orders in Tier 3 is $0.22 per
contract. See CBOE's Fees Schedule. See also Securities Exchange Act
Release No. 371588 (June 17, 2015), 80 FR 36021 (June 23, 2015) (SR-
CBOE-2015-058) (rule change increasing VIP credit for certain orders
in Tier 3 from $0.16 per contract to $0.22 per contract, also in
Tier 2 from $0.16 per contract to $0.21 per contract and in Tier 4
from $0.17 per contract to $0.23 per contract).
---------------------------------------------------------------------------

    The Exchange believes that its proposal to amend Category A is
equitable and not unfairly discriminatory because these proposed
amendments to Category A apply uniformly to all market participants to
whom Category A applies. Moreover, the Exchange believes that the
proposed modest Tiers increases (to $0.15, $0.20, and $0.21) retain the
existing structure of increasingly higher rebates in increasingly
higher Tiers to encourage members to send greater liquidity while
giving members an opportunity to receive higher Customer rebates.
    The Exchange believes that its proposal to establish new Category B
is reasonable. The Exchange proposes new Category B regarding Customer
PIXL orders that are not complex orders (these are covered in Category
C), and the proposed Tiers in Category B are exactly like the current
Category A Tiers. In addition, the Exchange believes that it is
reasonable to re-number the last two sentences of the explanatory note
now applicable to Category A, which discusses Customer PIXL Orders, so
that it becomes the new note applicable to Category B, which deals with
Customer PIXL Orders. The Exchange believes that its proposal to add
new Category B, which is applicable to Complex PIXL orders only, adds
clarity to the rebate structure. The addition of Category B establishes
three different Categories for three different types of orders. This
allows the Exchange to more clearly delineate how rebates apply to
three types of orders: Customer Simple Orders that will be dealt with
in Category A, Customer PIXL Orders that will be dealt with in Category
B, and Customer Complex Orders and Customer Complex PIXL Orders that
will be dealt with in Category C. Moreover, the Tiers in Category B, as
also the explanatory note, are not new but rather are simply taken
directly from current Category A. The Exchange believes that it is
reasonable to move the current explanatory note regarding Category B,
which discusses Complex Orders, to Category C, which discusses Customer
Complex Orders and Customer Complex PIXL Orders.
    The Exchange believes that its proposal to amend Category B is
equitable and not unfairly discriminatory because these proposed
amendments to Category B apply uniformly to all market participants to
whom Category B applies.
    The Exchange believes that its proposal to re-name Category B as
Category C, which as proposed deals with Customer Complex Orders and
Customer Complex PIXL Orders, and to ensure that the explanatory note
to Category B is properly applicable to Category C, is reasonable under
the three-Category structure according to Customer order type. These
proposed changes will allow the Exchange to continue to attract
Customer liquidity to the Exchange. Customer orders bring valuable
liquidity to the market, which liquidity benefits other market
participants. Customer liquidity benefits all market participants by
providing more trading opportunities, which attracts Specialists and
Market Makers. An increase in the activity of these market participants
in turn facilitates tighter spreads, which may cause an additional
corresponding increase in order flow from other market participants.
The Exchange believes that it is reasonable to move the cap on PIXL
Complex Order rebates at the proposed 4,000 contracts per order leg
from Category B to Category C, which applies to Complex Orders.
    The Exchange believes that its proposal to amend Category C is
equitable and not unfairly discriminatory because these proposed
amendments to Category C apply uniformly to all market participants to
whom Category C applies.
    The Exchange also believes that amending the asterisked explanatory
note, which currently applies to Categories A and B, to reflect all
three Categories is reasonable under the three-Category system as
discussed. The portion of the note that now applies to Category A only
will be expanded to Category A and B; and the portion of the note that
now applies to Category B will apply to new Category C. The Exchange
believes that, similarly to the other proposed changes, this adds
clarity to the proposed new three-Category rebate structure (Customer
Simple Orders in Category A, Customer PIXL Orders in Category B, and
Customer Complex Orders and Customer Complex PIXL Orders in Category
C). In addition, The Exchange believes that it is reasonable to give
Specialists and Market Maker or its member of member organization
affiliate under Common Ownership to earn an additional rebate under
certain circumstances. An increase in the activity of these market
participants may facilitate tighter spreads, which may cause an
additional corresponding increase in order flow from other market
participants. Moreover, Specialists and Market Makers have obligations
to the market and regulatory requirements, which normally do not apply
to other market participants.\22\ They have obligations to make
continuous markets, engage in a course of dealings reasonably
calculated to contribute to the maintenance of a fair and orderly
market, and not make bids or offers or enter into transactions that are
inconsistent with a course of dealings. The differentiation as between
Specialists and Market Makers and other market participants (e.g.,
Professionals, Broker-Dealers, and Firms) recognizes the differing
contributions made to the liquidity and trading environment on the
Exchange by these market participants.
---------------------------------------------------------------------------

    \22\ See Rule 1014 titled ``Obligations and Restrictions
Applicable to Specialists and Registered Options Traders.''
---------------------------------------------------------------------------

    The Exchange believes that these last-discussed amendments are
equitable and not unfairly discriminatory because they would apply
uniformly to all market participants.
    The Exchange believes that the proposed amendments to the rebate
structure in the Pricing Structure enables the Exchange to continue to
incentivize members to send order flow to the Exchange to the benefit
market participants.

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 not necessary or appropriate in
furtherance of the purposes of the Act.
    The Customer Rebate Program amendments in section B of the Pricing
Schedule, for example, do not create an undue burden on competition
and, like all of the amendments proposed by the Exchange, will apply
uniformly to all market participants. Moreover, the section B
amendments will enable the Exchange to continue to attract liquidity,
which benefits all market participants by providing more trading
opportunities, which attracts Specialists and Market Makers. The
Exchange's proposal will allow it to continue to incentivize market
participants to bring liquidity to the Exchange, as described herein.
    The Exchange operates in a highly competitive market, comprised of
twelve exchanges, in which market participants can easily and readily
direct order flow to competing venues if they deem fee levels at a
particular venue to be excessive or rebates to be inadequate.
Accordingly, the fees that are assessed and the rebates paid by the

Exchange, as described in the proposal, are influenced by these robust
market forces and therefore must remain competitive with fees charged
and rebates paid by other venues and therefore must continue to be
reasonable and equitably allocated to those members that opt to direct
orders to the Exchange rather than competing venues.
    The Exchange believes that its changes are pro-competitive. The
proposed rebate changes, which are part of the Exchange's overall fee
structure, are designed to ensure a fair and reasonable use of Exchange
resources by allowing the Exchange to recoup costs while continuing to
attract liquidity and offer connectivity at competitive rates to
Exchange members and member organizations.

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)(ii) of the Act.\23\ 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.
---------------------------------------------------------------------------

    \23\ 15 U.S.C. 78s(b)(3)(A)(ii).
---------------------------------------------------------------------------

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-Phlx-2015-68 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-Phlx-2015-68. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml).
    Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for Web site viewing and printing in
the Commission's Public Reference Room, 100 F Street NE., Washington,
DC 20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change; the Commission does not edit
personal identifying information from submissions. You should submit
only information that you wish to make available publicly.
    All submissions should refer to File Number SR-Phlx-2015-68 and
should be submitted on or before September 10, 2015.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\24\
---------------------------------------------------------------------------

    \24\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-20546 Filed 8-19-15; 8:45 am]
BILLING CODE 8011-01-P