[Federal Register Volume 88, Number 57 (Friday, March 24, 2023)]
[Notices]
[Pages 17891-17898]
[FR Doc No: 2023-06054]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-97160; File No. SR-BX-2023-007]

Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Modify Equity 4,
Rule 4120 To Establish Common Criteria and Procedures for Halting and
Resuming Trading in Equity Securities in the Event of Regulatory or
Operational Issues, Reorganize the Text of the Rule, and Make
Conforming Changes to Related Rules

March 20, 2023.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on March 8, 2023, Nasdaq BX, Inc. (``BX'' or ``Exchange'') filed
with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I and II below, which Items
have been prepared by the self-regulatory organization. The Commission
is publishing this notice to solicit comments on the proposed rule
change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to modify Equity 4, Rule 4120 to establish
common criteria and procedures for halting and resuming trading in
equity securities in the event of regulatory or operational issues,
reorganize the text of the rule, and make conforming changes to related
rules. The text of the proposed rule change is available on the
Exchange's website at https://listingcenter.nasdaq.com/rulebook/bx/rules, 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
    In conjunction with adoption of an amended Nasdaq UTP Plan proposed
by its participants (``Amended Nasdaq UTP Plan''),\3\ the Exchange is
amending Rule

4120 \4\ to integrate several definitions and concepts from the Amended
Nasdaq UTP Plan and to reorganize the rule in light of the Exchange's
experience with applying the rule over many years as a national
securities exchange.\5\ The Exchange proposes to reorganize and amend
Rule 4120, entitled Limit Up-Limit Down Plan and Trading Halts. The
rule sets forth the Exchange's authority to halt trading under various
circumstances. The Exchange is a participant of the transaction
reporting plan governing Tape C Securities (``Nasdaq UTP Plan'').\6\ As
part of these changes, the Exchange will amend categories of regulatory
and operational halts, improve the rule's clarity, adopt defined terms
from the Amended Nasdaq UTP Plan and delete parts of the rule that are
no longer needed. Last, the Exchange is updating cross references in
other rules that are affected by the proposed changes.
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    \3\ On February 11, 2021, the Nasdaq UTP Plan participants filed
Amendment 50 to the Plan, to revise provisions governing regulatory
and operational halts. See Letter from Robert Brooks, Chairman, UTP
Operating Committee, Nasdaq UTP Plan, to Vanessa Countryman,
Secretary, Securities and Exchange Commission, dated February 11,
2021. The Nasdaq UTP Plan subsequently filed two partial amendments
to the 50th Amendment, on March 31, 2021 and on April 7, 2021. The
SEC approved the amendments on May 28, 2021. See Securities Exchange
Act Release No. 34-92071 (May 28, 2021), 86 FR 29846 (June 3, 2021)
(S7-24-89). The Amended Nasdaq UTP Plan includes provisions
requiring participant self-regulatory organizations (``SROs'') to
honor a Regulatory Halt declared by the Primary Listing Market. The
provisions in the Nasdaq UTP Plan, and the plan for consolidation of
data for non-Nasdaq-listed securities, the Consolidated Tape System
and Consolidated Quotations System (collectively, the ``CTA/CQS
Plan''), include provisions similar to the changes proposed by the
Exchange in this filing.
    \4\ References herein to Nasdaq BX, Inc. Rules in the 4000
Series shall mean Rules in Nasdaq BX Equity 4.
    \5\ The Exchange notes that its sister exchange, The Nasdaq
Stock Market, LLC (``Nasdaq''), filed a similar proposed rule change
with the Commission. See Securities Exchange Act Release No. 94370
(March 7, 2022), 87 FR 14071 (March 11, 2022); Securities Exchange
Act Release No. 94838 (May 3, 2022), 87 FR 27683 (May 9, 2022). The
Commission approved the proposed rule change on June 8, 2022. See
Securities Exchange Act Release No. 95069 (June 8, 2022), 87 FR
36018 (June 14, 2022). Nasdaq PHLX LLC also filed a similar proposed
rule change with the Commission. See Securities Exchange Act Release
No. 96574 (December 22, 2022), 87 FR 80213 (December 29, 2022). The
Exchange's proposal provides the Exchange with less authority to
declare halts in the event of regulatory or operational issues than
under Nasdaq's proposal because the Exchange, unlike Nasdaq, is not
a Primary Listing Market. Given the Exchange's status as a non-
Primary Listing Market, certain definitions and concepts from the
Amended Nasdaq UTP Plan, integrated in Nasdaq's proposal, are not
included herein. The Exchange's proposal closely tracks the proposed
rule change filed by Nasdaq PHLX.
    \6\ Each transaction reporting plan has a securities information
processor (``SIP'') responsible for consolidation of information for
the plan's securities, pursuant to Rule 603 of Regulation NMS. The
transaction reporting plan for Nasdaq-listed securities is known as
The Joint Self-Regulatory Organization Plan Governing the
Collection, Consolidation and Dissemination of Quotation and
Transaction Information for Nasdaq-Listed Securities Traded on
Exchanges on an Unlisted Trading Privilege Basis or the ``Nasdaq UTP
Plan.'' Pursuant to the Nasdaq UTP Plan, the UTP SIP, which is
Nasdaq, consolidates order and trade data from all markets trading
Nasdaq-listed securities. The Exchange uses the term ``UTP SIP''
herein when referring specifically to the SIP responsible for
consolidation of information in Nasdaq-listed securities.
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Background
    The Exchange has been working with other SROs to establish common
criteria and procedures for halting and resuming trading in equity
securities in the event of regulatory or operational issues. These
common standards are designed to ensure that events which might impact
multiple exchanges are handled in a consistent manner that is
transparent. The Exchange believes that implementation of these common
standards will assist the SROs in maintaining fair and orderly markets.
Notwithstanding the development of these common standards, the Exchange
will retain discretion in certain instances as to whether and how to
handle halts, as is discussed below.
    Every U.S.-listed equity security has its primary listing on a
specific stock exchange that is responsible for a number of regulatory
functions.\7\ These include confirming that the security continues to
meet the exchange's listing standards, monitoring trading in that
security and taking action to halt trading in the security when
necessary to protect investors and to ensure a fair and orderly market.
While these core responsibilities remain with the primary listing
venue, trading in the security can occur on multiple exchanges that
have unlisted trading privileges for the security \8\ or in the over-
the-counter market, regulated by the Financial Industry Regulatory
Authority, Inc. (``FINRA''). The exchanges and FINRA are responsible
for monitoring activity on the markets over which they have oversight,
but also must abide by the regulatory decisions made by the Primary
Listing Market. For example, a venue trading a security pursuant to
unlisted trading privileges must halt trading in that security during a
Regulatory Halt, which is a defined term under the proposed rules,\9\
and may only trade the security once the Primary Listing Market has
cleared the security to resume trading.
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    \7\ The Exchange is proposing to adopt Primary Listing Market as
a new term, defined in Nasdaq UTP Plan, Section X.A.8, as follows:
``[T]he national securities exchange on which an Eligible Security
is listed. If an Eligible Security is listed on more than one
national securities exchange, Primary Listing Market means the
exchange on which the security has been listed the longest.''
    \8\ In addition, securities may be listed on The Nasdaq Global
Market or The Nasdaq Global Select Market, and also listed on the
New York Stock Exchange (``dually-listed''). See The Nasdaq Stock
Market, LLC Rules 5005(a)(11), 5220 and IM-5220.
    \9\ See proposed Rule 4120(a)(9).
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    While the Exchange and the other SROs intend to harmonize certain
aspects of their trading halt rules, other elements of the rules will
continue to be unique to each market. The Exchange believes that this
is appropriate to reflect different products listed or traded on each
market.
    In addition to establishing common criteria and procedures for
halting and resuming trading in equity securities in the event of
regulatory or operational issues, the Exchange is deleting provisions
that are no longer needed and reorganizing the rule to improve its
clarity. The Exchange is also making a handful of non-substantive
changes to rule text to improve its clarity. The Exchange will
implement all of the changes proposed herein in conjunction with other
SROs implementing the necessary rule changes. The Exchange will publish
an Equity Trader alert at least 30 business days prior to implementing
the proposed changes.
Definitions
    The Exchange proposes adding a definitions section as Rule 4120(a)
to consolidate the various definitions that will be used in the Rule,
some of which are taken from the Amended Nasdaq UTP Plan. The Exchange
is adopting the following terms from the Amended Nasdaq UTP Plan:
``Operating Committee,'' ``Operational Halt,'' ``Primary Listing
Market,'' ``Processor,'' \10\ ``Regulatory Halt,'' ``Regular Trading
Hours,'' \11\ ``SIP Halt,'' and ``SIP Halt Resume Time.'' The Exchange
is adopting a modified form of the term ``Extraordinary Market
Activity'' from the Amended Nasdaq UTP Plan, as described below. The
definitions of ``Derivative Securities Product,'' ``Pre-Market
Session,'' and ``Required Value'' have been moved into the definitions
section from elsewhere in the current rule without change.\12\ The
definition of ``Post-Market Session'' has been moved from elsewhere in
the rule \13\ with a minor change deleting the alternative closing time
of 4:15 p.m. as all securities traded on the Exchange commence their
closing cross process at 4:00 p.m.\14\
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    \10\ The Exchange proposes to also define the term ``SIP'' to
have the same meaning as the term ``Processor'' as set forth in the
Amended Nasdaq UTP Plan. Because the terms ``Processor'' and ``SIP''
are also used throughout the Rules, at times, to apply to processors
of information furnished pursuant to the Consolidated Tape
Association Plan (``CTA Plan''), the term ``Processor'' may, in
those applicable circumstances, refer to the processor of
transactions in Tape A and B securities, as set forth in the CTA
Plan.
    \11\ The Exchange notes that pursuant to existing Rule
4120(b)(4)(C)-(D), the Regular Market Session occurs until 4:00 p.m.
or 4:15 p.m., and the Post-Market Session begins at 4:00 p.m. or
4:15 p.m.
    \12\ ``Derivative Securities Product'' is currently defined in
Rule 4120(b)(4)(A). ``Pre-Market Session'' is currently defined in
Rule 4120(b)(4)(B). ``Required Value'' is currently defined in Rule
4120(b)(4)(E).
    \13\ ``Post-Market Session'' is currently defined in Rule
4120(b)(4)(C).
    \14\ As noted above, the Exchange is adopting several new terms
that have the same meaning as those terms are defined in the Amended
Nasdaq UTP Plan. Each of the national market system plans governing
the single plan processors has identical definitions of these terms,
thus there will be uniformity in the meaning of the terms among such
plans as well as among the rules of the SROs.

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    First, the Exchange proposes to add the definition of ``Primary
Listing Market'' \15\ to Rule 4120, which will have the same meaning as
in the Amended Nasdaq UTP Plan, Section X.A.8. As is currently the case
under Rule 4120 and under the Nasdaq UTP Plan, all Regulatory Halt
decisions are made by the market on which the security has its primary
listing. This reflects the regulatory responsibility that the Primary
Listing Market has for fair and orderly trading in the securities that
list on its market and its direct access to its listed companies, which
are required to advise it of certain events and maintain lines of
communication with the Primary Listing Market. The proposed definition
makes clear that if a security is listed on more than one market (a
dually-listed security), the Primary Listing Market means the exchange
on which the security has been listed the longest. This provision
matches language used in the definition of ``Primary Listing Exchange''
in the Limit-Up Limit-Down Plan and will avoid conflict in the event of
dually-listed securities.
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    \15\ See proposed Rule 4120(a)(7).
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    Second, the Exchange proposes to add the definition of
``Extraordinary Market Activity'' to Rule 4120,\16\ which would
represent a modified version of the term defined in the Amended Nasdaq
UTP Plan, Section X.A.1.\17\ Specifically, the Exchange proposes to
remove the concept of a ``market-wide basis'' from the Amended Nasdaq
UTP Plan's definition of Extraordinary Market Activity for purposes of
the Exchange's Rules because the term ``Extraordinary Market Activity''
would only be used in the Exchange's Rules as a basis for the Exchange
to initiate an Operational Halt, which would only occur on the market
declaring the halt (i.e., the Exchange).\18\ The current rule does not
include a definition for Extraordinary Market Activity.
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    \16\ See proposed Rule 4120(a)(2).
    \17\ In the Amended Nasdaq UTP Plan, ``Extraordinary Market
Activity'' means a disruption or malfunction of any electronic
quotation, communication, reporting, or execution system operated
by, or linked to, the Processor or a Trading Center or a member of
such Trading Center that has a severe and continuing negative
impact, on a market-wide basis, on quoting, order, or trading
activity or on the availability of market information necessary to
maintain a fair and orderly market. For purposes of this definition,
a severe and continuing negative impact on quoting, order, or
trading activity includes (i) a series of quotes, orders, or
transactions at prices substantially unrelated to the current market
for the security or securities; (ii) duplicative or erroneous
quoting, order, trade reporting, or other related message traffic
between one or more Trading Centers or their members; or (iii) the
unavailability of quoting, order, or transaction information for a
sustained period.
    \18\ The Exchange proposes to define ``Extraordinary Market
Activity'' to mean a disruption or malfunction of any electronic
quotation, communication, reporting, or execution system operated
by, or linked to, the Processor or a Trading Center or a member of
such Trading Center that has a severe and continuing negative impact
on quoting, order, or trading activity or on the availability of
market information necessary to maintain a fair and orderly market.
For purposes of this definition, a severe and continuing negative
impact on quoting, order, or trading activity includes (i) a series
of quotes, orders, or transactions at prices substantially unrelated
to the current market for the security or securities; (ii)
duplicative or erroneous quoting, order, trade reporting, or other
related message traffic between one or more Trading Centers or their
members; or (iii) the unavailability of quoting, order, or
transaction information for a sustained period.
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    The third set of new proposed definitions would be specific to
events involving the SIP. While the Exchange recognizes that many
events involving the SIP would also meet the definition of
``Extraordinary Market Activity'' (as defined in the Amended Nasdaq UTP
Plan), the Exchange believes that the critical role of the SIPs in
market infrastructure factors in favor of additional guidance on how
such events will be handled. The definitions of ``SIP Halt Resume
Time'' and ``SIP Halt'' are intended to provide additional guidance to
address this subset of potential market issues.\19\ In addition, the
Exchange is proposing to define terms related to SIP governance needed
in order to understand these definitions:
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    \19\ The Exchange proposes to define the terms ``SIP Halt Resume
Time'' and ``SIP Halt'' to have the same meaning as in the Amended
Nasdaq UTP Plan.
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     ``Processor'' or ``SIP'' \20\ have the same meaning as the
term ``Processor'' set forth in the Nasdaq UTP Plan, namely the entity
selected by the Participants to perform the processing functions set
forth in the Plan. Because the terms ``Processor'' and ``SIP'' are also
used throughout the Rules, at times, to apply to processors of
information furnished pursuant to the CTA Plan, the term ``Processor''
and ``SIP'' may, in those applicable circumstances, refer to the
processor of transactions in Tape A and B securities, as set forth in
the CTA Plan.
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    \20\ See proposed Rule 4120(a)(8).
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     ``SIP Plan'' \21\ is defined as the national market system
plan governing the SIP.
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    \21\ See proposed Rule 4120(a)(14).
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     ``Operating Committee'' \22\ is defined as having the same
meaning as in the Nasdaq UTP Plan, namely the committee charged with
administering the Nasdaq UTP Plan.
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    \22\ See proposed Rule 4120(a)(3).
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    The Exchange is proposing to adopt a category of Regulatory Halt,
called a ``SIP Halt,'' \23\ which will have the same meaning as that
term is defined in Section X.A.11. of the Nasdaq UTP Plan, namely ``a
Regulatory Halt to trading in one or more securities that a Primary
Listing Market declares in the event of a SIP Outage or Material SIP
Latency.'' This new category of Regulatory Halt will address situations
where the Primary Listing Market declares a Regulatory Halt in one or
more securities as a result of a SIP outage \24\ or material SIP
latency.\25\
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    \23\ See proposed Rule 4120(a)(12).
    \24\ SIP outage means a situation in which the Processor has
ceased, or anticipates being unable, to provide updated and/or
accurate quotation or last sale price information in one or more
securities for a material period that exceeds the time thresholds
for an orderly failover to backup facilities established by mutual
agreement among the Processor, the Primary Listing Market for the
affected securities, and the Operating Committee unless the Primary
Listing Market, in consultation with the Processor and the Operating
Committee, determines that resumption of accurate data is expected
in the near future. See Amended Nasdaq UTP Plan, Section X.A.13.
    \25\ Material SIP latency means a delay of quotation or last
sale price information in one or more securities between the time
data is received by the Processor and the time the Processor
disseminates the data over the Processor's vendor lines, which delay
the Primary Listing Market determines, in consultation with, and in
accordance with, publicly disclosed guidelines established by the
Operating Committee, to be (a) material and (b) unlikely to be
resolved in the near future. See Amended Nasdaq UTP Plan, Section
X.A.5.
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    The Exchange proposes to add a definition of ``Regulatory Halt''
\26\ as having the same meaning as in Section X.A.10 of the Amended
Nasdaq UTP Plan. Specifically, the Exchange has proposed to define
Regulatory Halt to mean a halt declared by the Primary Listing Market
in trading in one or more securities on all Trading Centers for
regulatory purposes, including for the dissemination of material news,
news pending, suspensions, or where otherwise necessary to maintain a
fair and orderly market. A Regulatory Halt includes a trading pause
triggered by Limit Up Limit Down, a halt based on Extraordinary Market
Activity (as defined in the Amended Nasdaq UTP Plan), a trading halt
triggered by a Market-Wide Circuit Breaker, and a SIP Halt.
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    \26\ See proposed Rule 4120(a)(9).
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    The Exchange proposes to add a definition of ``Operational Halt,''
\27\ which is defined as having the same meaning as in Section X.A.7 of
the Amended Nasdaq UTP Plan. Specifically, the Exchange is proposing to
define Operational Halt to mean a halt in trading in one or more
securities only on the market declaring the halt

and is not a Regulatory Halt. An Operational Halt is effective only on
the Exchange; other markets are not required to halt trading in the
impacted securities. In practice, the Exchange has always had the
capacity to implement operational halts in specified circumstances.\28\
The proposed change would provide greater clarity on when an
Operational Halt may be implemented and the process for halting and
resuming trading in the event of an Operational Halt. An Operational
Halt is not a Regulatory Halt.\29\
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    \27\ See proposed Rule 4120(a)(4).
    \28\ See By-Laws of Nasdaq BX, Inc., Section 12.5 (``Authority
to Take Action Under Emergency or Extraordinary Market
Conditions''), available at https://listingcenter.nasdaq.com/assets/rulebook/bx/rules/BX_Corporate_Organization.pdf.
    \29\ The Exchange notes that it proposes to amend the existing
definition of the term ``Post-Market Session'' to clarify that it is
a trading session that begins after ``Regular Trading Hours''--a
term that, in turn, is defined in the Nasdaq UTP Plan--and that such
session begins at ``approximately'' 4:00 p.m. See Proposed Rule
4120(a)(5).
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Regulatory Halt
    Proposed Rule 4120(b)(1)(A)(i)-(ii) includes two situations in
which the Exchange must halt trading pursuant to a Regulatory Halt:
under the Limit Up-Limit Down Plan or pursuant to extraordinary market
volatility (market-wide circuit breakers). Proposed Rule
4120(b)(1)(A)(i) retains without substantive modification the existing
rule with respect to the Limit Up-Limit Down Plan (current Rule
4120(a)(13)). The Exchange, as a non-Primary Listing Market, does not
itself declare trading pauses pursuant to the Limit Up-Limit Down Plan,
but rather implements such pauses declared by Primary Listing Markets.
The Exchange proposes to make clear in Rule 4120(b)(1)(A)(ii) that a
trading halt pursuant to extraordinary market volatility (market-wide
circuit breakers), as is described in Rule 4121, constitutes a
Regulatory Halt. This would replace current Rule 4120(a)(11). The
Exchange also proposes to delete language at the end of Rule 4120
related to current Rule 4120(a)(11), which refers to a pilot and is no
longer needed.\30\
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    \30\ Specifically, the Exchange proposes to delete the following
provision: ``The provisions of paragraph (a)(11) of this Rule shall
be in effect during a pilot set to end on the earlier of the initial
date of operations of the Regulation NMS Plan to Address
Extraordinary Market Volatility or February 4, 2014. During the
pilot, the term ``Circuit Breaker Securities'' shall mean all NMS
stocks except rights and warrants.''
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    Proposed Rule 4120(b)(1)(A)(iv) retains without substantive
modification existing Rule 4120(12), which requires the Exchange to
halt trading if a security listed on the Exchange fails to meet the
continued listing standard of a minimum bid price of at least $0.25 per
share under the Exchange's venture market listing rules.\31\
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    \31\ The Exchange proposes retaining this provision because it
is required by a continued listing standard that remains in the
rulebook. However, the Exchange's venture market listing rules are
not active, as described further below, and the Exchange is not
currently operating as a Primary Listing Market. To the extent the
Exchange proceeds with a listing market in the future, the Exchange
will submit a proposed rule change at that time to adopt halts
appropriate for a Primary Listing Market, as described further
below.
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    The Exchange would also consolidate subsections concerning a
Regulatory Halt declared by Primary Listing Markets in Rule
4120(b)(1)(A)(iii). The Exchange believes this consolidation would add
clarity to the rule. As is the case under the current rule, the
Exchange would honor a Regulatory Halt.
    The Exchange proposes to add proposed Rule
4120(b)(1)(A)(iii)(a)(1), which makes clear that the start time of a
Regulatory Halt is the time the Primary Listing Market declares the
Regulatory Halt, regardless of whether communications issues impact the
dissemination of notice of the Halt.\32\ This proposal would provide
market participants with certainty on the official start time of the
Regulatory Halt. Under the proposed rule, the start time is fixed by
the Primary Listing Market; it is not dependent on whether notice is
disseminated immediately. This will avoid possible disagreement if the
Regulatory Halt time were tied to dissemination or receipt of
notification, which may occur at different times. The Exchange
recognizes that in situations where communication is interrupted,
trades may continue to occur until news of the Regulatory Halt reaches
all trading centers. However, a fixed ``official'' Regulatory Halt time
will allow SROs to revisit trades after the fact and determine in a
consistent manner whether specific trades should stand.
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    \32\ This is consistent with the Amended Nasdaq UTP Plan. See
Amended Nasdaq UTP Plan, Section X.D.1.
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    Current Rule 4120(a)(2), which states that the Exchange may halt
trading on the Exchange of a security listed on another national
securities exchange during a trading halt imposed by such exchange to
permit the dissemination of material news, would become proposed Rule
4120(b)(1)(A)(iii)(a)(2). Consistent with Section X.G of the Nasdaq UTP
Plan, the proposed Rule will more broadly require the Exchange to halt
trading of a UTP security if the Primary Listing Market declares a
Regulatory Halt in that security.
    Current Rule 4120(b), which governs trading halts in certain
Derivative Securities Products traded on the Exchange pursuant to
unlisted trading privileges, would become proposed Rule
4120(b)(1)(A)(iii)(a)(3), without any substantive changes. Subsection
(b)(1)(A)(iii)(a)(3) would replace the term ``Regular Market Session''
with the term ``Regular Trading Hours'' to stay consistent with other
portions of the proposed rule. The change is non-substantive and would
still refer to the period between 9:30 a.m. and 4:00 p.m. Eastern Time
on days when the Exchange is open for trading. No other changes have
been made to this subsection.
Resumption of Trading After a Regulatory Halt
    The SROs have jointly developed processes to govern the resumption
of trading in the event of a Regulatory Halt. While the actual process
of re-launching trading will remain unique to each exchange, the
proposed rule would harmonize certain common elements of the reopening
process that would benefit from consistency across markets. These
common elements include the primacy of the Primary Listing Market in
resumption decisions, the requirement that the Primary Listing Market
make its determination to resume trading in good faith,\33\ and certain
parts of the complex process of reopening trading after a SIP Halt.
With respect to a SIP Halt, common elements of the reopening process
include the interaction among SROs (including the Primary Listing
Market with the SIP), the requirement that the Primary Listing Market
terminate a SIP Halt with a notification that specifies a SIP Halt
Resume Time, the minimum quoting times before resumption of trading,
the cutoff time after which trading would not resume during Regular
Trading Hours, and the time when trading may resume if the Primary
Listing Market does not open a security within the amount of time
specified in its rules after the SIP Halt Resume Time.
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    \33\ See Partial Amendment No. 1 of Trading Halt Amendments to
the UTP Plan, dated March 31, 2021.
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    Proposed Rule 4120(b)(2) provides the process to be followed when
resuming trading upon the conclusion of a Regulatory Halt. The new
rule, which incorporates Section X.E.1 and X.F.3 of the Amended Nasdaq
UTP Plan, is divided into the following two subsections concerning
resumption of trading: (A) after a Regulatory Halt other than a SIP
Halt; and (B) after a SIP Halt. Proposed Rule 4120(b)(2)(A)(i) provides
that, for a Regulatory Halt other than a SIP Halt, the Exchange may
resume

trading subject to the Regulatory Halt after the Exchange receives
notification from the Primary Listing Market that the Regulatory Halt
has been terminated. The Exchange does not conduct halt crosses and,
therefore, the resumption of trading in these securities will occur
once notice from the Primary Listing Market is received.
    Proposed Rule 4120(b)(2)(B)(i) provides that, for securities
subject to a SIP Halt initiated by another exchange that is the Primary
Listing Market, during Regular Trading Hours, the Exchange may resume
trading after trading has resumed on the Primary Listing Market or
notice has been received from the Primary Listing Market that trading
may resume. During Regular Trading Hours, if the Primary Listing Market
does not open a security within the amount of time specified by the
rules of the Primary Listing Market after the SIP Halt Resume Time, the
Exchange may resume trading in that security. Outside Regular Trading
Hours, the Exchange may resume trading immediately after the SIP Halt
Resume Time.\34\ Proposed Rule 4120(b)(2) is consistent with current
practice.
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    \34\ See Partial Amendment No. 2 of Trading Halt Amendments to
the UTP Plan, dated April 7, 2021.
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    The Exchange proposes to add Rule 4120(b)(3) to codify current
practice and add clarity to the Rules, consistent with the language
proposed by Nasdaq PHLX LLC. Proposed Rule 4120(b)(3) states that the
Exchange will not conduct a halt cross or re-opening cross and will
process new and existing orders during a Regulatory Halt as follows:
(1) any unexecuted portion of Midpoint Peg and Midpoint Peg Post-Only
Orders will be cancelled,\35\ (2) all other resting Orders in the
Exchange Book will be maintained at their last ranked price and
displayed price, (3) the Exchange will accept and process all
cancellations, and (4) Orders, including Order modifications, entered
during the Regulatory Halt will not be accepted. Proposed Rule
4120(b)(3)(D) retains without substantive modification existing Rule
4120(c)(4)(B).
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    \35\ Proposed Rule 4120(b)(3) applies to Regulatory Halts.
Consistent with current practice, Midpoint Pegged Orders are only
cancelled during Regulatory Halts. In contrast, during an
Operational Halt, Midpoint Pegged Orders are not cancelled. The
Exchange notes that its sister exchange, Nasdaq, intends to file a
proposed rule change to reflect this concept.
---------------------------------------------------------------------------

    The Exchange proposes to delete current Rule 4120(a) (except for
Rule 4120(a)(2), (11), (12), and (13) (as described above)), which
provides the Exchange with authority to initiate halts.\36\ In part,
current Rule 4120(a) provides the Exchange with authority to initiate
Regulatory Halts akin to that of a Primary Listing Market. Although the
Exchange has BX venture market listing Rules, BX does not serve as a
listing market and therefore the proposed Rules herein reflect that of
a non-Primary Listing Market.\37\ Specifically, the Exchange proposes
to remove authority provided under the current rules that allows the
Exchange to institute a Regulatory Halt in circumstances where the
Exchange requests additional information from an issuer (current Rule
4120(a)(5)), where extraordinary market activity in the security is
occurring and the Exchange determines that such extraordinary market
activity is likely to have a material effect on the market for the
security (current Rule 4120(a)(6)), to allow for the dissemination of
material news (current Rule 4120(a)(1)), and to protect a fair and
orderly market in the trading of index warrants (current Rule
4120(a)(8)). The proposed rule change would remove the Exchange's
discretion, provided under current Rule 4120(a)(9), to halt trading in
a series of Portfolio Depository Receipts, Index Fund Shares, or
Managed Fund Shares (as defined in Equity 3A, Section 2) listed on the
Exchange if the Intraday Indicative Value (as defined in Equity 3A,
Section 2) or the index value applicable to that series is not being
disseminated as required, during the day in which the interruption to
the dissemination of the Intraday Indicative Value or the index value
occurs. The proposed rule change would also remove the Exchange's
discretion, provided under current Rule 4120(a)(4), to halt trading in
an American Depository Receipt (``ADR'') or other security listed on
the Exchange, when the security listed on the Exchange or the security
underlying the ADR is listed on or registered with another national or
foreign securities exchange or market, and the national or foreign
securities exchange or market, or regulatory authority overseeing such
exchange or market, halts trading in such security for regulatory
reasons. The proposed rule change would also remove the requirement to
halt trading in the Derivative Securities Product when the Exchange
becomes aware that the net asset value of a Derivative Securities
Product (or the Disclosed Portfolio in the case of Managed Fund Shares)
is not being disseminated to all participants at the same time (current
Rule 4120(a)(10)).
---------------------------------------------------------------------------

    \36\ Deletion of Rule 4120(a)(3) is described in the
``Operational Halt'' section below.
    \37\ If BX proceeds with a listing market in the future, the
Exchange will update Rule 4120 accordingly, among other necessary
proposed rule changes at that time.
---------------------------------------------------------------------------

    In addition, The Exchange proposes to delete current Rule 4120(c),
which provides procedures for initiating and terminating a trading
halt. The Exchange would not initiate a Regulatory Halt given its
status as a non-Primary Listing Market, rendering language in the
current rule inapplicable. Proposed procedures for terminating
Regulatory Halts and resuming trading are included in proposed Rule
4120(b)(2), as discussed above.
Operational Halt
    The Exchange proposes in Rule 4120(c) to address Operational Halts,
which are non-regulatory in nature and apply only to the exchange that
calls the halt. The ability to call an Operational Halt has existed for
a long time, although in the Exchange's experience, such halts have
rarely been initiated. As part of the Exchange's assessment with the
other SROs of the halting and resumption of trading, the Exchange
believes that the markets would benefit from greater clarity regarding
when an Operational Halt may be appropriate.\38\ In part, the proposed
change is designed to cover situations similar to those that might
constitute a Regulatory Halt, but where the impact is limited to a
single market. For example, just as a market disruption might trigger a
Regulatory Halt for Extraordinary Market Activity (as defined in the
Amended Nasdaq UTP Plan) if it affects multiple markets, so a
disruption at the Exchange, such as a technical issue affecting trading
in one or more securities, could impact trading on the Exchange so
significantly that an Operational Halt is appropriate in one or more
securities. In such an instance, it would be in the public interest to
institute an Operational Halt to minimize the impact of a disruption
that, if trading were allowed to continue, might negatively affect a
greater number of market participants. An Operational Halt does not
implicate other trading centers.
---------------------------------------------------------------------------

    \38\ Differences between Nasdaq and the Exchange's proposals as
it relates to Operational Halts stem from Nasdaq's status as a
Primary Listing Market, unlike the Exchange.
---------------------------------------------------------------------------

    Proposed Rule 4120(c) would authorize the Exchange to implement an
Operational Halt for any security trading on the Exchange:
     if it is experiencing Extraordinary Market Activity \39\
on the Exchange; or
---------------------------------------------------------------------------

    \39\ ``Extraordinary Market Activity'' in proposed Rule 4120(c)
would have the meaning proposed by the Exchange, which is a modified
form of the term from the Amended Nasdaq UTP Plan, as described
above.

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

     when otherwise necessary to maintain a fair and orderly
market or in the public interest.
    The Exchange is proposing to delete Rule 4120(a)(3) that authorizes
the Exchange to institute an ``operational trading halt'' in a security
listed on another exchange when that exchange imposes a trading halt
because of an order imbalance or influx. The Exchange believes this
language could restrict its ability to follow an Operational Halt
imposed by another market to a limited set of fact patterns. The
Exchange believes that the broader language provided by the definition
of Extraordinary Market Activity and the ability to initiate an
Operational Halt when necessary to maintain a fair and orderly market
will better serve the interests of investors by allowing the Exchange
to act where appropriate.
    Proposed Rule 4120(c)(2) provides the process for initiating an
Operational Halt. Under the proposed rule, the Exchange must notify the
SIP if it has concerns about its ability to collect and transmit
Quotation Information or Transaction Reports, or if it has declared an
Operational Halt or suspension of trading in one or more Eligible
Securities, pursuant to the procedures adopted by the Operating
Committee.
    Proposed Rule 4120(c)(3) will clarify how the Exchange resumes
trading after an Operational Halt. Proposed Rule 4120(c)(3)(A) provides
that the Exchange would resume trading when it determines that trading
may resume in a fair and orderly manner consistent with the Exchange's
rules. Proposed Rule 4120(c)(3)(B) provides that orders entered during
the Operational Halt will not be accepted, unless subject to
instructions that the order will be directed to another exchange.
Proposed Rule 4120(c)(3)(C) provides that trading in a halted security
shall resume at the time specified by the Exchange in a notice.
Proposed Rule 4120(c)(3)(C) also specifies that Exchange will notify
all other Plan participants and the SIP using such protocols and other
emergency procedures as may be mutually agreed to between the Operating
Committee and the Exchange. If the SIP is unable to disseminate notice
of an Operational Halt or the Exchange is not open for trading, the
Exchange will take reasonable steps to provide notice of an Operational
Halt, which shall include both the type and start time of the
Operational Halt. Each Plan participant shall continuously monitor
communication protocols established by the Operating Committee and the
Processor during market hours to disseminate notice of an Operational
Halt, and the failure of a participant to do so shall not prevent the
Exchange from initiating an Operational Halt.
Conforming Changes to Other Rules
    The Exchange is proposing to modify Rule 4702 that cross references
Rule 4120 in light of the reorganization of Rule 4120. Rule 4702 (Order
Types) will be modified to update a cross reference to the Rule that
governs Limit-Up-Limit-Down procedures.
    In addition, the Exchange is proposing to modify Equity 3, Rule
5815 that cross references Rule 4120 in light of the reorganization of
Rule 4120. Rule 5815(a)(1)(C) will be modified to update a cross
reference to the Rule that governs halts for failure to meet the
continued listing standard of a minimum bid price of at least $0.25 per
share under the Exchange's venture market listing rules.\40\
---------------------------------------------------------------------------

    \40\ Supra note 31.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that its proposal is consistent with the
requirements of the Act and the rules and regulations thereunder that
are applicable to a national securities exchange, and, in particular,
with the requirements of Section 6(b) of the Act.\41\ Specifically, the
proposal is consistent with Section 6(b)(5) of the Act \42\ because it
would promote just and equitable principles of trade, remove
impediments to, and perfect the mechanism of, a free and open market
and a national market system, and, in general, protect investors and
the public interest.
---------------------------------------------------------------------------

    \41\ 15 U.S.C. 78f(b).
    \42\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    As described above, the Exchange and other SROs are seeking to
adopt harmonized rules related to halting and resuming trading in U.S.-
listed equity securities. The Exchange believes that the proposed rules
will provide greater transparency and clarity with respect to the
situations in which trading will be halted and the process through
which that halt will be implemented and terminated. Particularly, the
proposed changes seek to achieve consistent results for participants
across U.S. equities exchanges while maintaining a fair and orderly
market, protecting investors and protecting the public interest. Based
on the foregoing, the Exchange believes that the proposed rules are
consistent with Section 6(b)(5) of the Act \43\ because they will
foster cooperation and coordination with persons engaged in regulating
and facilitating transactions in securities.
---------------------------------------------------------------------------

    \43\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    As discussed previously, the Exchange believes that the various
provisions of the proposed rules that will apply to all SROs are
focused on the type of cross-market event where a consistent approach
will assist market participants and reduce confusion during a crisis.
Because market participants often trade the same security across
multiple venues and trade securities listed on different exchanges as
part of a common strategy, the Exchange believes that the proposed
rules will lessen the risk that market participants holding a basket of
securities will have to deal with divergent outcomes depending on where
the securities are listed or traded. Conversely, the proposed rules
would still allow individual SROs to react differently to events that
impact various securities or markets in different ways. This avoids the
``brittle market'' risk where an isolated event at a single market
forces all markets trading equities securities to halt or halts trading
in all securities where the issue impacted only a subset of securities.
By addressing both concerns, the Exchange believes that the proposed
rules further the Act's goal of maintaining fair and orderly markets.
    The Exchange believes that the proposed rules' focus of
responsibility on the Primary Listing Market for decisions related to a
Regulatory Halt and the resumption of trading is consistent with the
Act, which itself imposes obligations on exchanges with respect to
issuers that are listed. As is currently the case, the Primary Listing
Market would be responsible for the many regulatory functions related
to its listings, including the determination of when to declare a
Regulatory Halt. While these core responsibilities remain with the
Primary Listing Market, trading in the security can occur on multiple
exchanges that have unlisted trading privileges for the security, such
as on the Exchange, or in the over-the-counter market, regulated by
FINRA. The Exchange is responsible for monitoring activity on its own
markets, but also must honor a Regulatory Halt.
    The proposed changes relating to Regulatory Halts would ensure that
all SROs handle the situations covered therein in a consistent manner
that would prevent conflicting outcomes in cross-market events and
ensure that all trading centers recognize a Regulatory Halt declared by
the Primary Listing Market. The changes are consistent with and
implement the Amended Nasdaq UTP Plan.

    The Exchange believes that the definitions in the proposed rules
are also consistent with the Act. The Exchange proposes adding a
definitions section as Rule 4120(a) to consolidate the various
definitions that will be used in the Rule, some of which are taken from
the Amended Nasdaq UTP Plan. The Exchange is adopting a modified form
of the term ``Extraordinary Market Activity'' from the Amended Nasdaq
UTP Plan, as described above. In addition, several other definitions
have been moved into the definitions section from elsewhere in the
current rule without changes in the definitions. As noted, certain
definitions are consistent with the definitions in the Amended Nasdaq
UTP Plan, furthering the Act's goal of promoting fair and orderly
markets. For example, the Exchange is proposing to adopt a definition
of ``SIP Halt,'' to explicitly address a situation that may disrupt the
markets, and this definition is identical to the definition in the
Amended Nasdaq UTP Plan. In addition to ``SIP Halt,'' the Exchange is
adopting the following terms from the Amended Nasdaq UTP Plan:
``Operating Committee,'' ``Operational Halt,'' ``Primary Listing
Market,'' ``Processor,'' ``Regulatory Halt,'' ``Regular Trading
Hours,'' and ``SIP Halt Resume Time,'' as discussed above.
    The Exchange believes that the proposed rules, which make halts
more consistent across exchange rules, are consistent with the Act in
that they will foster cooperation and coordination with persons engaged
in regulating the equities markets. In particular, the Exchange
believes it is important for SROs to coordinate when there is a
widespread and significant event, as multiple trading centers are
impacted in such an event. Further, while the Exchange recognizes that
the proposed rule will not guarantee a consistent result on every
market in all situations, the Exchange does believe that it will assist
in that outcome. While the proposed rules relating to Regulatory Halts
focuses primarily on the kinds of cross-market events that would likely
impact multiple markets, individual SROs will still retain flexibility
to deal with unique products or smaller situations confined to a
particular market.
    Also consistent with the Act, and with the Amended Nasdaq UTP Plan,
is the Exchange's proposal in Rule 4120(c) to address Operational
Halts, which are non-regulatory in nature and apply only to the
exchange that calls the halt. As noted earlier, the Exchange presently
has the ability to call an Operational Halt, but does so rarely. The
Exchange believes that the markets would benefit from greater clarity
regarding when an Operational Halt may be appropriate. The proposed
change is designed to cover situations where the impact is limited to a
single market. For example, a disruption at the Exchange, such as a
technical issue affecting trading in one or more securities, could
impact trading on the Exchange so significantly that an Operational
Halt is appropriate in one or more securities. In such an instance, it
would be in the public interest to institute an Operational Halt to
minimize the impact of a disruption that, if trading were allowed to
continue, might negatively affect a greater number of market
participants. An Operational Halt does not implicate other trading
centers.
    Proposed Rule 4120(c) would authorize the Exchange to implement an
Operational Halt for any security trading on the Exchange: (i) if it is
experiencing Extraordinary Market Activity on the Exchange; or (ii)
when otherwise necessary to maintain a fair and orderly market or in
the public interest.
    The Exchange believes that it is consistent with the Act to delete
parts of Rule 4120 that are no longer needed, including substantial
portions of Rule 4120(a) (as described above) and Rule 4120(c). The
Exchange proposes to remove the authority provided to the Exchange to
initiate Regulatory Halts as a Primary Listing Market in current Rule
4120(a) given the Exchange's status as a non-Primary Listing Market. In
addition, current Rule 4120(a)(3) authorizes the Exchange to institute
an ``operational trading halt'' in a security listed on another
exchange when that exchange imposes a trading halt because of an order
imbalance or influx. The Exchange believes this language could restrict
its ability to follow an Operational Halt imposed by another market to
a limited set of fact patterns. The Exchange believes that the broader
language provided by the definition of Extraordinary Market Activity in
proposed Rule 4120(c) will better serve the interests of investors by
allowing the Exchange to act where appropriate. The Exchange proposes
to delete current Rule 4120(c), which provides procedures for
initiating and terminating a trading halt, to remove obsolete language
and harmonize procedures for terminating Regulatory Halts and resuming
trading. Finally, the Exchange proposes to delete language from current
Rule 4120 relating to effectiveness of paragraph (a)(11), which is
obsolete. Other sections of current Rule 4120 are reorganized and
retained without substantive modifications, as described above.

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

    The Exchange believes the proposal is consistent with Section
6(b)(8) of the Act \44\ in that it does not impose any burden on
competition that is not necessary or appropriate in furtherance of the
purposes of the Act as explained below.
---------------------------------------------------------------------------

    \44\ 15 U.S.C. 78f(b)(8).
---------------------------------------------------------------------------

    Importantly, the Exchange believes the proposal will not impose a
burden on intermarket competition but will rather alleviate any burden
on competition because it is the result of a collaborative effort by
all SROs to harmonize and improve the process related to the halting
and resumption of trading in U.S.-listed equity securities, consistent
with the Amended Nasdaq UTP Plan. In this area, the Exchange believes
that all SROs should have consistent rules to the extent possible in
order to provide additional transparency and certainty to market
participants and to avoid inconsistent outcomes that could cause
confusion and erode market confidence. The proposed changes would
ensure that all SROs handle the situations covered therein in a
consistent manner and ensure that all trading centers handle a
Regulatory Halt consistently. The Exchange understands that all other
non-Primary Listing Markets intend to file proposals that are
substantially similar to this proposal.
    The Exchange does not believe that its proposals concerning
Operational Halts impose an undue burden on competition. Under the
existing Rules, the Exchange already possesses discretionary authority
to impose Operational Halts for various reasons, including because of
an order imbalance or influx that causes another national securities
exchange to impose a trading halt in a security. As described earlier,
the proposed Rule change clarifies and broadens the circumstances in
which the Exchange may impose such Halts, and specifies procedures for
both imposing and lifting them. The Exchange does not intend for these
proposals to have any competitive impact whatsoever. Indeed, the
Exchange expects that other exchanges will adopt similar rules and
procedures to govern operational halts, to the extent that they have
not done so already.
    The Exchange does not believe that the proposed rule change imposes
a burden on intramarket competition because the provisions apply to all
market participants equally. In addition, information regarding the
halting and resumption of trading will be disseminated using several
freely

accessible sources to ensure broad availability of information in
addition to the SIP data and proprietary data feeds offered by the
Exchange and other SROs that are available to subscribers. In addition,
the declaration and timing of trading halts and the resumption of
trading is designed to avoid any advantage to those who can react more
quickly than other participants. The proposals encourage early and
frequent communication among the SROs, SIPs and market participants to
enable the dissemination of timely and accurate information concerning
the market to market participants.

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

    Because the foregoing proposed rule change does not: (i)
significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A)(iii) of the Act \45\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\46\
---------------------------------------------------------------------------

    \45\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \46\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires the Exchange to give the Commission written notice of its
intent to file the proposed rule change, along with a brief
description and text of the proposed rule change, at least five
business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission. The
Exchange has satisfied this requirement.
---------------------------------------------------------------------------

    At any time within 60 days of the filing of such proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule should be approved or disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include
File Number SR-BX-2023-007 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-BX-2023-007. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549 on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange.
    All comments received will be posted without change. Persons
submitting comments are cautioned that we do not redact or edit
personal identifying information from comment submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-BX-2023-007 and should be
submitted on or before April 14, 2023.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\47\
---------------------------------------------------------------------------

    \47\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-06054 Filed 3-23-23; 8:45 am]
BILLING CODE 8011-01-P


Record for the Final Metal Product and Machinery Rule 1234567 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 A B C D E F VARIABLE DESCRIPTIONS FOR I& S_ MPCT_ FINAL. XLS FINAL MP& M RULE VARIABLE DESCRIPTION WORKSHEET COLUMN CBI FORMULA Sector Sector Abbreviation Values A N IS CPT Coef Cost Pass Through Coefficient Values B N 76.7% Long Name Sector Name Values C N Iron and Steel Total Cost: Baseline Total Costs in the Baseline by Sector, 1996$ Values D Y = SUMIF( Base!$ C$ 7:$ C$ 103,$ A26, Base!$ E$ 7:$ E$ 103) Change in Costs ( Compliance Costs): Option 1 Total Option 1 Compliance Costs by Sector, 1996$ Values E Y = SUMIF(' O1'!$ C$ 6:$ C$ 103,$ A26,' O1'!$ J$ 6:$ J$ 103)

Change in Costs ( Compliance Costs): Option 2 Total Option 2 Compliance Costs by Sector, 1996$ Values F Y = SUMIF(' O2'!$ C$ 6:$ C$ 103,$ A26,' O2'!$ J$ 6:$ J$ 103)

Change in Costs ( Compliance Costs): Option 3 Total Option 3 Compliance Costs by Sector, 1996$ Values G Y = SUMIF(' O3'!$ C$ 6:$ C$ 103,$ A26,' O3'!$ J$ 6:$ J$ 103)

Change in Costs ( Compliance Costs): Option 4 Total Option 4 Compliance Costs by Sector, 1996$ Values H Y = SUMIF(' O4'!$ C$ 6:$ C$ 103,$ A26,' O4'!$ J$ 6:$ J$ 103)

Post Compliance Price Change Factor: Option 2 Percent of Post Compliance Price Change in Option 2 Values I N = IF( D26> 0,($ B26* E26/$ D26)*$ Q26,0)

Post Compliance Price Change Factor: Option 2 Percent of Post Compliance Price Change in Option 2 Values J N = IF( E26> 0,($ B26* F26/$ D26)*$ Q26,0)

Post Compliance Price Change Factor: Option 4 Percent of Post Compliance Price Change in Option 4 Values K N = IF( F26> 0,($ B26* G26/$ D26)*$ Q26,0)

Post Compliance Price Change Factor: Option 4 Percent of Post Compliance Price Change in Option 4 Values L N = IF( G26> 0,($ B26* H26/$ D26)*$ Q26,0)

Moderate Impacts: PTRA Moderate Impact Threshold for PTRA Values M N 2.5% Moderate Impacts: ICR Moderate Impact Threshold for ICR Values N N 2.17 Manufacturing Output, 1996 Manufacturing Output by Sector, Census of Manufacturers, 1996 Values O Y Baseline Revenues Total Revenues in the Baseline by Sector, 1996$ Values P Y = SUMIF( Base!$ C$ 7:$ C$ 953,$ A26, Base!$ W$ 7:$ W$ 953)

Percent Regulated Percent of the Industry Regulated by Sector Values Q N = IF( P26/ O26> 1,1, P26/ O26) SID Survey ID Base A N = IF( RawData! B6<>"", RawData! B6,"") Weight Sample Weight Base B Y = IF( ISNA( VLOOKUP($ A7, FacData, 2, FALSE)), 0, VLOOKUP($ A7, FacData, 2, FALSE)) Sector Primary Sector Base C Y = IF( ISNA( VLOOKUP($ A7, FacData, 4, FALSE))," UNK", VLOOKUP($ A7, FacData, 4, FALSE))

Avg Revenue Average of Three Years of Revenues from the survey, 1996$ Base D Y = RawData! C6 Average Costs and Expenses: Total Cost Average of Three Years of Total Costs from the survey, 1996$ Base E Y = RawData! D6 Average Costs and Expenses: Interest Average of Three Years of Interest from the survey, 1996$ Base F Y = RawData! E6 Average Costs and Expenses: Taxes Average of Three Years of Taxes from the survey, 1996$ Base G Y = RawData! F6 Average Costs and Expenses: Depr Average of Three Years of Depreciation from the survey, 1996$ Base H Y = RawData! K6 Adjusted Tax Adjusted tax rate includes the tax on interest Base I Y = MAX( 0, G7+( F7* TAX_ RATE)) EBIT Earnings Before Interest and Taxes Base J Y =$ D7$ E7+$ F7+$ G7 Capital Expenditures Capital Expenditures Estimate Base K Y = AN7* 1000000 Test of Net Present Value ( NPV): Unlevered ATCF Unlevered after tax cash flow includes the tax on interest Base L Y = D7 E7+ H7 K7+ F7+ G7 I7 Test of Net Present Value ( NPV): LV Liquidation Value Base M Y 0 Test of Net Present Value ( NPV): Tax_ Ben Tax Benefit from Liquidation Base N Y 0 Test of Net Present Value ( NPV): NPV Net Present Value Base O Y = L7/ AMORT_ D Test of Severe Impacts: ATCF Is After Tax Cash Flow positive? Yes= 1; No= 0 Base P N 0 Test of Severe Impacts: NPV Is Net Present Value positive? Yes= 1; No= 1 Base Q N = IF($ A7>"", IF( O7>= 0,1,0),"") Test of Severe Impacts: Either Does the site pass either the ATCF or NPV test? 1= Yes; 0= Baseline Closure Base R N = IF( AND($ A7>"", D7= 0), 1, IF($ A7>"", MAX( Q7, P7),""))

February 14, 2003 Page 1 of 24 I& S_ MPCT_ Final. xls: Var Desc Record for the Final Metal Product and Machinery Rule 123 A B C D E F VARIABLE DESCRIPTIONS FOR I& S_ MPCT_ FINAL. XLS FINAL MP& M RULE VARIABLE DESCRIPTION WORKSHEET COLUMN CBI FORMULA 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 Test of Moderate Impacts: EBIT/ Total Assets Pre Tax Return on Sales Base S Y = IF( ISERR( J7/ Y7), 0.999, J7/ Y7)

Test of Moderate Impacts: EBITDA / Interest Expense Interest Coverage Ratio Base T Y = IF( ISERR(( J7+ H7)/ F7), 999,( J7+ H7)/ F7)

Test of Moderate Impacts: Pass? Is the PTRA> 8% and ICR> 4.0? 1= Yes; 0= Moderate Impact Base U N = IF($ C7="","", IF( AND( S7> VLOOKUP($ C7, ModerateThresholds, 13,0), T7> VLOOKUP($ C7, Moder ateThresholds, 14,0)), 1,0)) Opp. of U Opposite of Column W Base V N = IF( U7= 1,0,1) Wtd Revs Sample Weighted Revenues, 1996$ Base W Y = B7* D7 Inputs to Capital Expenditures Estimation: Operating Income Operating Income Base X Y = D7 E7 Inputs to Capital Expenditures Estimation: Assets Assets Base Y Y = RawData! J6 Inputs to Capital Expenditures Estimation: ROA Return on Assets Base Z Y = IF( ISERR( X7/ Y7),"", X7/ Y7)

Inputs to Capital Expenditures Estimation: CAPT Capital Turnover Rate Base AA Y = H7/ Y7 Inputs to Capital Expenditures Estimation: CAPI Capital Intensity Base AB Y = Y7/ D7 Inputs to Capital Expenditures Estimation: DEBTCST Debt to Cost Ratio Base AC Y 6.4 Inputs to Capital Expenditures Estimation: CAPPRC Price of Capital Equipment Base AD Y 136.9 Inputs to Capital Expenditures Estimation: CAPUTIL Capacity Utilization Base AE Y 90.82 Estimation of Capital Expenditures: CAPEX Capital Expenditures Base AF Y = EXP( AF$ 4)

Estimation of Capital Expenditures: ROA Return on Assets Base AG Y =( Z7+ 0.3134659)^ AG$ 4 Estimation of Capital Expenditures: REVENUE Revenue Base AH Y =( D7/ 1000000)^ AH$ 4 Estimation of Capital Expenditures: CAPT Capital Turnover Rate Base AI Y = AA7^ AI$ 4 Estimation of Capital Expenditures: CAPI Capital Intensity Base AJ Y = AB7^ AJ$ 4 Estimation of Capital Expenditures: DEBTCST Debt to Cost Ratio Base AK Y = AC7^ AK$ 4 Estimation of Capital Expenditures: CAPPRC Price of Capital Equipment Base AL Y = AD7^ AL$ 4 Estimation of Capital Expenditures: CAPUTIL Capacity Utilization Base AM Y = AE7^ AM$ 4 Estimation of Capital Expenditures: CAPEX ( mil) Capital expenditures ( millions) Base AN Y = PRODUCT( AF7: AM7)

SID Survey ID O1, O2, O3, O4 A N = RawData! B6 Weight Sample Weight O1, O2, O3, O4 B Y = Base! B7 Sector Primary Sector O1, O2, O3, O4 C Y = Base! C7 Unweighted Compliance Cost: Capital Capital Compliance Costs, 1996$ O1, O2, O3, O4 D Y = VLOOKUP($ A7, Costs!$ A$ 7:$ M$ 331,$ D$ 1,0)

Unweighted Compliance Cost: Recurring Annual Compliance Costs, 1996$ O1, O2, O3, O4 E Y = VLOOKUP($ A7, Costs!$ A$ 7:$ M$ 331,$ E$ 1,0)

Unweighted Compliance Cost: Other Other Compliance Costs, 1996$ O1, O2, O3, O4 F N Unweighted Compliance Cost: Pvt_ Cost( AT) After tax Compliance Costs, 1996$ O1, O2, O3, O4 G Y = IF( J7= 0,0, J7( K7* TAX_ RATE)+ L7)

Unweighted Compliance Cost: Soc_ Cost ( BT) Before tax Compliance Costs, 1996$ O1, O2, O3, O4 H Y = IF( OR( ISNA( F7), ISERR( F7)), 0, E7+ D7* AMORT_ O)

Revenue Change Change in Revenue based on Cost Pass Through Coefficient O1, O2, O3, O4 I Y = IF($ A7>"", VLOOKUP( C7, Dprice, I$ 1, FALSE)* Base! D7,0)

February 14, 2003 Page 2 of 24 I& S_ MPCT_ Final. xls: Var Desc Record for the Final Metal Product and Machinery Rule 123 A B C D E F VARIABLE DESCRIPTIONS FOR I& S_ MPCT_ FINAL. XLS FINAL MP& M RULE VARIABLE DESCRIPTION WORKSHEET COLUMN CBI FORMULA 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 Changes in Average Costs and Expenses: Ann_ Cost Annualized Compliance Costs O1, O2, O3, O4 J Y = IF( OR( ISNA( F7), ISERR( F7)), 0, E7+ D7* AMORT_ D)

Changes in Average Costs and Expenses: Interest Change in Interest from Baseline O1, O2, O3, O4 K Y = D7* 0.0485 Changes in Average Costs and Expenses: Taxes Change in Taxes from Baseline O1, O2, O3, O4 L Y =( MIN( Base! I7,(( I7 E7 M7)* TAX_ RATE)* 1))* 1 Changes in Average Costs and Expenses: Depr Change in Depreciation from Baseline O1, O2, O3, O4 M Y = D7/ Values!$ B$ 18 O1, O2, O3, O4 N Test of Net Present Value ( NPV): After Tax Cash Flow ( ATCF) After Tax Cash Flow O1, O2, O3, O4 O Y = Base! L7+( I7 E7) L7 Test of Net Present Value ( NPV): NPV Discounted Cash Flow O1, O2, O3, O4 P Y = O7/ AMORT_ D D7 Test of Severe Impacts ( unwgtd): ATCF Is After Tax Cash Flow positive? Yes= 1; No= 0 O1, O2, O3, O4 Q N 0 Test of Severe Impacts ( unwgtd): NPV Is Net Present Value positive? Yes= 1; No= 1 O1, O2, O3, O4 R N = IF($ A7>"", IF( P7>= 0,1,0),"")

Test of Severe Impacts ( unwgtd): Either Does the site pass either the ATCF or NPV test? 1= Yes; 0= Baseline Closure O1, O2, O3, O4 S N = IF( AND($ A7>"", Base! D7= 0), 1, IF($ A7>"", MAX( R7, Q7),""))

Test of Severe Impacts ( unwgtd): Incr? Is there an incremental failure from the baseline? 0= No; 1= Post compliance Closure O1, O2, O3, O4 T N = IF( OR( Base! D7= 0, Base! E7= 0), 0, IF($ A7>"", IF( S7= 0, IF( Base! R7= 1,1,0), IF( AND( S7= 1, Base! R7 = 0), 1,0)),"")) Test of Severe Impacts ( wgtd): Incr? Weighted Post Compliance Closures O1, O2, O3, O4 U Y = T7*$ B7 Test of Moderate Impacts: EBIT Earnings Before Interest and Taxes O1, O2, O3, O4 V Y =( Base! J7+ I7) E7 M7 Test of Moderate Impacts: EBIT/ Total Assets Pre Tax Return on Sales O1, O2, O3, O4 W Y = IF( ISERR( V7/ Base! Y7), 0.999, V7/ Base! Y7)

Test of Moderate Impacts: EBITDA / Interest Expense Interest Coverage Ratio O1, O2, O3, O4 X Y = IF( ISERR(( V7+( M7+ Base! H7))/( K7+ Base! F7)), 999,( V7+( M7+ Base! H7))/( K7+ Base! F7))

Test of Moderate Impacts: Incr? Is there an incremental failure from the baseline? 0= No; 1= Post compliance Moderate Impact O1, O2, O3, O4 Y N = IF($ A7'="","", IF( AND($ A7>"", Base! D7= 0), 0, IF( Base! U7= 0,0, IF( AND( W7> VLOOKUP($ C7, Mode rateThresholds, 13,0), X7> VLOOKUP($ C7, ModerateThresholds, 14,0)), 0,1))))

Post Compliance Revenue Post Compliance Revenue O1, O2, O3, O4 Z Y = Base!$ D7+$ I7 ACC as % of PCR Annual Compliance Cost as a percent of Post Compliance Revenue O1, O2, O3, O4 AA Y = G7/ Z7 SID Site ID RawData B = TEXT( P6,0) REV_ AVG Average Revenue RawData C Y = IF( ISERR( SUMIF( AL6: AN6,"> 0")/ COUNTIF( AL6: AN6,"> 0")), 0, SUMIF( AL6: AN6,"> 0")/ COUNTIF ( AL6: AN6,"> 0")) COST_ TOT Total Costs RawData D Y = IF( ISERR( SUMIF( AO6: AQ6,"> 0")/ COUNTIF( AO6: AQ6,"> 0")), 0, SUMIF( AO6: AQ6,"> 0")/ COUNT IF( AO6: AQ6,"> 0")) COST_ INT Interest RawData E Y = IF( ISERR( SUMIF( AR6: AT6,"> 0")/ COUNTIF( AR6: AT6,"> 0")), 0, SUMIF( AR6: AT6,"> 0")/ COUNTI F( AR6: AT6,"> 0")) COST_ TAX Taxes RawData F Y = IF( ISERR( SUMIF( AU6: AW6,"> 0")/ COUNTIF( AU6: AW6,"> 0")), 0, SUMIF( AU6: AW6,"> 0")/ COUN TIF( AU6: AW6,"> 0")) LV_ NET Net LV RawData G Y INT Interest Rate, Site RawData H Y = Int_ Rate DEBT Total Debt RawData I Y = AX6+ AY6 ASSETS Total Assets RawData J Y = AZ6 DEPR Depreciation Expense RawData K Y = IF( ISERR( SUMIF( BA6: BC6,"> 0")/ COUNTIF( BA6: BC6,"> 0")), 0, SUMIF( BA6: BC6,"> 0")/ COUNTI F( BA6: BC6,"> 0")) CURR_ LIA Current Liabilities RawData L Y = AX6 NON_ LIA Non Current Liabilities RawData M Y = AY6 FIRM_ REV Firm Revenue RawData N Y = IF( ISERR( SUMIF( BD6: BF6,"> 0")/ COUNTIF( BD6: BF6,"> 0")), 0, SUMIF( BD6: BF6,"> 0")/ COUNTIF ( BD6: BF6,"> 0")) I& S_ ID Iron and Steel Survey ID RawData O Y SITEID 10 preceding I& S Survey ID RawData P Y B12cSite Total Income ( Site)  1995 RawData Q Y B13cSite Total Income ( Site)  1996 RawData R Y February 14, 2003 Page 3 of 24 I& S_ MPCT_ Final. xls: Var Desc Record for the Final Metal Product and Machinery Rule 123 A B C D E F VARIABLE DESCRIPTIONS FOR I& S_ MPCT_ FINAL. XLS FINAL MP& M RULE VARIABLE DESCRIPTION WORKSHEET COLUMN CBI FORMULA 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 B14cSite Total Income ( Site)  1997 RawData S Y B12gSite Total Costs and Expenses ( Site)  1995 RawData T Y B13gSite Total Costs and Expenses ( Site)  1996 RawData U Y B14gSite Total Costs and Expenses ( Site)  1997 RawData V Y B12iSite Interest Income ( Site)  1995 RawData W Y B13iSite Interest Income ( Site)  1996 RawData X Y B14iSite Interest Income ( Site)  1997 RawData Y Y B12jSite Taxes ( Site)  1995 RawData Z Y B13jSite Taxes ( Site)  1996 RawData AA Y B14jSite Taxes ( Site)  1997 RawData AB Y B15iSite Current Liabilities ( Site)  1997 RawData AC Y B15jSite Long Term Debt ( Site)  1997 RawData AD Y B15hSite Total Assets ( Site)  1997 RawData AE Y B12eSite Depreciation and Amortization ( Site)  1995 RawData AF Y B13eSite Depreciation and Amortization ( Site)  1996 RawData AG Y B14eSite Depreciation and Amortization ( Site)  1997 RawData AH Y B12cComp Total Income ( Company)  1995 RawData AI Y B13cComp Total Income ( Company)  1996 RawData AJ Y B14cComp Total Income ( Company)  1997 RawData AK Y B12cSite Total Income ( Site)  1995 converted to 1999$ RawData AL Y = Q6*( 1+( PPI_ 99 PPI_ 95)/ PPI_ 95) B13cSite Total Income ( Site)  1996 converted to 1999$ RawData AM Y = R6*( 1+( PPI_ 99 PPI_ 96)/ PPI_ 96) B14cSite Total Income ( Site)  1997 converted to 1999$ RawData AN Y = S6*( 1+( PPI_ 99 PPI_ 97)/ PPI_ 97) B12gSite Total Costs and Expenses ( Site)  1995 converted to 1999$ RawData AO Y = T6*( 1+( PPI_ 99 PPI_ 95)/ PPI_ 95)

B13gSite Total Costs and Expenses ( Site)  1996 converted to 1999$ RawData AP Y = U6*( 1+( PPI_ 99 PPI_ 96)/ PPI_ 96)

B14gSite Total Costs and Expenses ( Site)  1997 converted to 1999$ RawData AQ Y = V6*( 1+( PPI_ 99 PPI_ 97)/ PPI_ 97)

B12iSite Interest Income ( Site)  1995 converted to 1999$ RawData AR Y = W6*( 1+( PPI_ 99 PPI_ 95)/ PPI_ 95) B13iSite Interest Income ( Site)  1996 converted to 1999$ RawData AS Y = X6*( 1+( PPI_ 99 PPI_ 96)/ PPI_ 96) B14iSite Interest Income ( Site)  1997 converted to 1999$ RawData AT Y = Y6*( 1+( PPI_ 99 PPI_ 97)/ PPI_ 97) B12jSite Taxes ( Site)  1995 converted to 1999$ RawData AU Y = Z6*( 1+( PPI_ 99 PPI_ 95)/ PPI_ 95) B13jSite Taxes ( Site)  1996 converted to 1999$ RawData AV Y = AA6*( 1+( PPI_ 99 PPI_ 96)/ PPI_ 96) B14jSite Taxes ( Site)  1997 converted to 1999$ RawData AW Y = AB6*( 1+( PPI_ 99 PPI_ 97)/ PPI_ 97) B15iSite Current Liabilities ( Site)  1997 converted to 1999$ RawData AX Y = AC6*( 1+( PPI_ 99 PPI_ 97)/ PPI_ 97)

B15jSite Long Term Debt ( Site)  1997 converted to 1999$ RawData AY Y = AD6*( 1+( PPI_ 99 PPI_ 97)/ PPI_ 97)

B15hSite Total Assets ( Site)  1997 converted to 1999$ RawData AZ Y = AE6*( 1+( PPI_ 99 PPI_ 97)/ PPI_ 97) B12eSite Depreciation and Amortization ( Site)  1995 converted to 1999$ RawData BA Y = AF6*( 1+( PPI_ 99 PPI_ 95)/ PPI_ 95)

B13eSite Depreciation and Amortization ( Site)  1996 converted to 1999$ RawData BB Y = AG6*( 1+( PPI_ 99 PPI_ 96)/ PPI_ 96)

B14eSite Depreciation and Amortization ( Site)  1997 converted to 1999$ RawData BC Y = AH6*( 1+( PPI_ 99 PPI_ 97)/ PPI_ 97)

B12cComp Total Income ( Company)  1995 converted to 1999$ RawData BD Y = AI6*( 1+( PPI_ 99 PPI_ 95)/ PPI_ 95)

B13cComp Total Income ( Company)  1996 converted to 1999$ RawData BE Y = AJ6*( 1+( PPI_ 99 PPI_ 96)/ PPI_ 96)

B14cComp Total Income ( Company)  1997 converted to 1999$ RawData BF Y = AK6*( 1+( PPI_ 99 PPI_ 97)/ PPI_ 97)

SID Survey ID FacData A N Weight Sample Weight FacData B Y = VLOOKUP($ A6,[ facdata_ Final. xls] FacData!$ A$ 7:$ K$ 1000, B$ 3,0) Small Owned by a Small Entity? FacData C Y = VLOOKUP($ A6,[ facdata_ Final. xls] FacData!$ A$ 7:$ K$ 1000, C$ 3,0) Sector Primary Sector FacData D Y = VLOOKUP($ A6,[ facdata_ Final. xls] FacData!$ A$ 7:$ K$ 1000, D$ 3,0) Subcat Subcategory FacData E Y = VLOOKUP($ A6,[ facdata_ Final. xls] FacData!$ A$ 7:$ K$ 1000, E$ 3,0)

February 14, 2003 Page 4 of 24 I& S_ MPCT_ Final. xls: Var Desc Record for the Final Metal Product and Machinery Rule 123 A B C D E F VARIABLE DESCRIPTIONS FOR I& S_ MPCT_ FINAL. XLS FINAL MP& M RULE VARIABLE DESCRIPTION WORKSHEET COLUMN CBI FORMULA 150 151 152 153 154 155 156 157 158 159 160 161 FlowRange Flow Category Range FacData F Y = VLOOKUP($ A6,[ facdata_ Final. xls] FacData!$ A$ 7:$ K$ 1000, F$ 3,0) Direct? Discharger Type: D= Direct; I= Indirect FacData G N = VLOOKUP($ A6,[ facdata_ Final. xls] FacData!$ A$ 7:$ K$ 1000, G$ 3,0) ID Survey ID Costs A N CapCst1 Option 1 Capital Costs, 1997$ Costs B Y = VLOOKUP($ A7,'[ CompCost_ Final. xls] 1997'!$ A$ 7:$ S$ 1399, B$ 1, FALSE) AnnCst1 Option 1 Annual Costs, 1997$ Costs C Y = VLOOKUP($ A7,'[ CompCost_ Final. xls] 1997'!$ A$ 7:$ S$ 1399, C$ 1, FALSE) CC1_ 96 Option 1 Costs Annualized at 7% over 15 years, 1997 Costs D Y = VLOOKUP($ A7,'[ CompCost_ Final. xls] 1997'!$ A$ 7:$ S$ 1399, D$ 1, FALSE)

CapCst2 Option 2 Capital Costs, 1997$ Costs E Y = VLOOKUP($ A7,'[ CompCost_ Final. xls] 1997'!$ A$ 7:$ S$ 1399, E$ 1, FALSE) AnnCst2 Option 2 Annual Costs, 1997$ Costs F Y = VLOOKUP($ A7,'[ CompCost_ Final. xls] 1997'!$ A$ 7:$ S$ 1399, F$ 1, FALSE) CC2_ 96 Option 2 Costs Annualized at 7% over 15 years, 1997 Costs G Y = VLOOKUP($ A7,'[ CompCost_ Final. xls] 1997'!$ A$ 7:$ S$ 1399, G$ 1, FALSE)

CapCst3 Option 3 Capital Costs, 1997$ Costs H Y = VLOOKUP($ A7,'[ CompCost_ Final. xls] 1997'!$ A$ 7:$ S$ 1399, H$ 1, FALSE) AnnCst3 Option 3 Annual Costs, 1997$ Costs I Y = VLOOKUP($ A7,'[ CompCost_ Final. xls] 1997'!$ A$ 7:$ S$ 1399, I$ 1, FALSE) CC3_ 96 Option 3 Costs Annualized at 7% over 15 years, 1997 Costs J Y = VLOOKUP($ A7,'[ CompCost_ Final. xls] 1997'!$ A$ 7:$ S$ 1399, J$ 1, FALSE)

February 14, 2003 Page 5 of 24 I& S_ MPCT_ Final. xls: Var Desc Record for the Final Metal Product and Machinery Rule 123456789 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 A B C D E F G H I J K L M Constants and Other Numeric Values blue numbers are exogenous PPI95 125.5 Producer Price Index for Industrial Commodities, 1995 PPI96 127.3 Producer Price Index for Industrial Commodities, 1996 PPI97 127.7 Producer Price Index for Industrial Commodities, 1997 PPI98 124.8 Producer Price Index for Industrial Commodities, 1998 PPI99 126.5 Producer Price Index for Industrial Commodities, 1999 RATE_ D 0.07 discount rate for amortization RATE_ O 0.07 OMB discount rate for social opportunity cost PERIOD 15 Number of years amortized AMORT_ D 0.109794625 Amortization factor, 15 years AMORT_ O 0.109794625 Amortization factor, 15 years, OMB rate INFL 0.05 CPI U Inflation rate, 1996 TAX_ RATE 0.39 Marginal corporate tax rate DEP_ YRS 15 Number of years depreciated INT_ RATE 0.07 9 10 11 12 13 Total Cost Change in Costs ( Compliance Costs) Post Compliance Price Change Factor Sector CPT Coef Long Name Baseline Option 1 Option 2 Option 3 Option 4 Option 1 Option 2 Option 3 Option 4 PTRA IS 76.7% Iron and Steel 0.00% 0.00% 0.00% 0.00% 2.5% Moderate Impacts February 14, 2003 Page 6 of 24 I& S_ MPCT_ Final. xls: Values Record for the Final Metal Product and Machinery Rule 123456789 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 N O P Q 14 15 16 17 Percent of Industry Regulated ICR Manufacturing Output, 1996 Baseline Revenues Percent Regulated 2.2 0.0% Moderate Impacts February 14, 2003 Page 7 of 24 I& S_ MPCT_ Final. xls: Values Record for the Final Metal Product and Machinery Rule 1234 5 6 789 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 A B C D E F G H I J K L M N O P Q R S Baseline Financial Data Final MP& M Rule Test of Net Present Value ( NPV)

SID Weight Sector Avg Revenue Total Cost Interest Taxes Depr Adjusted Tax EBIT Capital Expenditures Unlevered ATCF LV Tax_ Ben NPV ATCF NPV Either EBIT/ Total Assets 940 0 1 1 941 0 1 1 943 0 1 1 944 0 1 1 945 0 1 1 946 0 1 1 947 0 1 1 949 0 1 1 950 0 1 1 951 0 1 1 953 0 0 0 954 0 1 1 955 0 1 1 956 0 1 1 957 0 1 1 958 0 0 0 959 0 1 1 960 0 0 1 961 0 1 1 962 0 1 1 963 0 1 1 964 0 1 1 965 0 1 1 966 0 1 1 Test of Moderate Impacts Pass Tests? Average Costs and Expenses February 14, 2003 Page 8 of 24 I& S_ MPCT_ Final. xls: Base Record for the Final Metal Product and Machinery Rule 1234 5 6 789 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 T U V W X Y Z AA AB AC AD AE AF AG AH AI AJ AK AL AM AN  2.0774 0.6182 1.0248 0.5995 0.9765  0.2050  0.4779 0.9043 Opp. Inputs to Estimation of Capital Expenditures Estimation of Capital Expenditures EBITDA / Interest Expense Pass? of U Wtd Revs Operating Income Assets ROA CAPT CAPI DEBTCST CAPPRC CAPUTIL CAPEX ROA REVENUE CAPT CAPI DEBTCST CAPPRC CAPUTIL CAPEX ( mil) 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 0 1 1 0 1 0 1 0 1 0 0 1 0 1 0 1 1 0 1 0 1 0 1 0 1 0 1 0 Test of Moderate Impacts February 14, 2003 Page 9 of 24 I& S_ MPCT_ Final. xls: Base Record for the Final Metal Product and Machinery Rule 1 2 34 5 6 789 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 A B C D E F G H I J K L M O P Q R Option = 1 3 2 3 6 7 8 9 10 11 12 13 15 16 17 18 Facility Impacts: Option 1 ( Oily Wastes Directs) Final MP& M Rule Option 1 SID Weight Sector Capital Recurring Other Pvt_ Cost( AT) Soc_ Cost Revenue Change Ann_ Cost Interest Taxes Depr After Tax Cash Flow ( ATCF) NPV ATCF NPV 940 0 1 941 0 1 943 0 1 944 0 1 945 0 1 946 0 1 947 0 1 949 0 1 950 0 1 951 0 1 953 0 0 954 0 1 955 0 1 956 0 1 957 0 1 958 0 0 959 0 1 960 0 0 961 0 1 962 0 1 963 0 1 964 0 1 965 0 1 966 0 1 Unweighted Compliance Cost Changes in Average Costs and Expenses Test of Net Present Value ( NPV) Pass Tests? Unweighted February 14, 2003 Page 10 of 24 I& S_ MPCT_ Final. xls: O1 Record for the Final Metal Product and Machinery Rule 1 2 34 5 6 789 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 S T U V W X Y Z AA 19 20 21 22 23 24 25 26 28 Wgtd Either Incr? Incr? EBIT EBIT/ Total Assets EBITDA / Interest Expense Incr?

1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 0 0 0 1 0 0 1 0 0 1 0 0 1 0 0 0 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 Post Compliance Revenue ACC as % of PCR Pass Tests? Unweighted Test of Moderate Impacts February 14, 2003 Page 11 of 24 I& S_ MPCT_ Final. xls: O1 Record for the Final Metal Product and Machinery Rule 1 2 34 5 6 789 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 A B C D E F G H I J K L M O P Q R Option = 2 5 6 10 Facility Impacts: Option 2 ( Proposed/ NODA Option) Final MP& M Rule Option 2 SID Weight Sector Capital Recurring Other Pvt_ Cost( AT) Soc_ Cost Revenue Change Ann_ Cost Interest Taxes Depr After Tax Cash Flow ( ATCF) DCF ATCF NPV 940 0 1 941 0 1 943 0 1 944 0 1 945 0 1 946 0 1 947 0 1 949 0 1 950 0 1 951 0 1 953 0 0 954 0 1 955 0 1 956 0 1 957 0 1 958 0 0 959 0 1 960 0 0 961 0 1 962 0 1 963 0 1 964 0 1 965 0 1 966 0 1 Unweighted Compliance Cost Pass Tests? Unweighted Changes in Average Costs and Expenses Test of Net Present Value ( NPV)

February 14, 2003 Page 12 of 24 I& S_ MPCT_ Final. xls: O2 Record for the Final Metal Product and Machinery Rule 1 2 34 5 6 789 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 S T U V W X Y Z AA 25 Wgtd Either Incr? Incr? EBIT EBIT/ Total Assets EBITDA / Interest Expense Incr?

1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 0 0 0 1 0 0 1 0 0 1 0 0 1 0 0 0 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 ACC as % of PCR Test of Moderate Impacts Pass Tests? Unweighted Post Compliance Revenue February 14, 2003 Page 13 of 24 I& S_ MPCT_ Final. xls: O2 Record for the Final Metal Product and Machinery Rule 1 2 34 5 6 789 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 A B C D E F G H I J K L M O P Q R Option = 3 8 9 11 Facility Impacts: Option 3 ( Directs + 413 to 433 Upgrade) Final MP& M Rule Option 3 SID Weight Sector Capital Recurring Other Pvt_ Cost( AT) Soc_ Cost Revenue Change Ann_ Cost Interest Taxes Depr After Tax Cash Flow ( ATCF) DCF ATCF NPV 940 0 1 941 0 1 943 0 1 944 0 1 945 0 1 946 0 1 947 0 1 949 0 1 950 0 1 951 0 1 953 0 0 954 0 1 955 0 1 956 0 1 957 0 1 958 0 0 959 0 1 960 0 0 961 0 1 962 0 1 963 0 1 964 0 1 965 0 1 966 0 1 Unweighted Compliance Cost Pass Tests? Unweighted Changes in Average Costs and Expenses Test of Net Present Value ( NPV)

February 14, 2003 Page 14 of 24 I& S_ MPCT_ Final. xls: O3 Record for the Final Metal Product and Machinery Rule 1 2 34 5 6 789 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 S T U V W X Y Z AA 25 Wgtd Either Incr? Incr? EBIT EBIT/ Total Assets EBITDA / Interest Expense Incr?

1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 0 0 0 1 0 0 1 0 0 1 0 0 1 0 0 0 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 ACC as % of PCR Test of Moderate Impacts Pass Tests? Unweighted Post Compliance Revenue February 14, 2003 Page 15 of 24 I& S_ MPCT_ Final. xls: O3 Record for the Final Metal Product and Machinery Rule 1 2 34 5 6 789 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 A B C D E F G H I J K L M O P Q R Option = 4 11 12 12 Facility Impacts: Option 4 ( Directs + All to 433 Upgrade) Final MP& M Rule Option 4 SID Weight Sector Capital Recurring Other Pvt_ Cost( AT) Soc_ Cost Revenue Change Ann_ Cost Interest Taxes Depr After Tax Cash Flow ( ATCF) DCF ATCF NPV 940 0 1 941 0 1 943 0 1 944 0 1 945 0 1 946 0 1 947 0 1 949 0 1 950 0 1 951 0 1 953 0 0 954 0 1 955 0 1 956 0 1 957 0 1 958 0 0 959 0 1 960 0 0 961 0 1 962 0 1 963 0 1 964 0 1 965 0 1 966 0 1 Unweighted Compliance Cost Changes in Average Costs and Expenses Test of Net Present Value ( NPV) Pass Tests? Unweighted February 14, 2003 Page 16 of 24 I& S_ MPCT_ Final. xls: O4 Record for the Final Metal Product and Machinery Rule 1 2 34 5 6 789 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 S T U V W X Y Z AA 25 Wgtd Either Incr? Incr? EBIT EBIT/ Total Assets EBITDA / Interest Expense Incr?

1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 0 0 0 1 0 0 1 0 0 1 0 0 1 0 0 0 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 Post Compliance Revenue ACC as % of PCR Test of Moderate Impacts Pass Tests? Unweighted February 14, 2003 Page 17 of 24 I& S_ MPCT_ Final. xls: O4 Record for the Final Metal Product and Machinery Rule 1 2 3 4 5 6789 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 A B C D E F G H I J K SURVEY DATA Copied data from " Import" table in I& S_ 0313. mdb into blue shaded region.

Description Site ID Average Revenue Total Costs Interest Taxes Net LV Interest Rate, Site Total Debt Total Assets Depreciation Expense Access Variable Name SID REV_ AVG COST_ TOT COST_ INT COST_ TAX LV_ NET INT DEBT ASSETS DEPR 940 941 943 944 945 946 947 949 950 951 953 954 955 956 957 958 959 960 961 962 963 964 965 966 February 14, 2003 Page 18 of 24 I& S_ MPCT_ Final. xls: RawData Record for the Final Metal Product and Machinery Rule 1 2 3 4 5 6789 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 L M N O P Q R S T U V W Current Liabilities Non Current Liabilities Firm Revenues CURR_ LIA NON_ LIA FIRM_ REV I& S_ ID SITEID B12cSite B13cSite B14cSite B12gSite B13gSite B14gSite B12iSite February 14, 2003 Page 19 of 24 I& S_ MPCT_ Final. xls: RawData Record for the Final Metal Product and Machinery Rule 1 2 3 4 5 6789 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 X Y Z AA AB AC AD AE AF AG AH AI B13iSite B14iSite B12jSite B13jSite B14jSite B15iSite B15jSite B15hSite B12eSite B13eSite B14eSite B12cComp February 14, 2003 Page 20 of 24 I& S_ MPCT_ Final. xls: RawData Record for the Final Metal Product and Machinery Rule 1 2 3 4 5 6789 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 AJ AK AL AM AN AO AP AQ AR AS AT AU AV AW CONVERTS ALL SURVEY DATA TO $ 1997 B13cComp B14cComp B12cSite B13cSite B14cSite B12gSite B13gSite B14gSite B12iSite B13iSite B14iSite B12jSite B13jSite B14jSite February 14, 2003 Page 21 of 24 I& S_ MPCT_ Final. xls: RawData Record for the Final Metal Product and Machinery Rule 1 2 3 4 5 6789 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 AX AY AZ BA BB BC BD BE BF B15iSite B15jSite B15hSite B12eSite B13eSite B14eSite B12cComp B13cComp B14cComp February 14, 2003 Page 22 of 24 I& S_ MPCT_ Final. xls: RawData Record for the Final Metal Product and Machinery Rule 12 3 4 5 6789 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 A B C D E F G Facility Characteristics From FACDATA_ FINAL. XLS 6 4 3 8 5 11 SID Weight Small Sector Subcat FlowRange Direct? 940 I 941 D 943 D 944 I 945 I 946 D 947 D 949 D 950 I 951 D 953 D 954 D 955 I 956 I 957 D 958 D 959 I 960 D 961 D 962 I 963 D 964 D 965 I 966 I February 14, 2003 Page 23 of 24 I& S_ MPCT_ Final. xls: FacData Record for the Final Metal Product and Machinery Rule 12 3 4 5 6789 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 A B C D E F G H I J K L M 5 6 7 8 9 10 11 12 13 14 15 16 1 2 3 4 5 6 7 8 9 10 11 12 13 Compliance Costs in 1997 Dollars Final MP& M Rule Uses Construction Cost Index to Update Compliance Costs to 1997 Dollars SID$ CapCst1 AnnCst1 CC1_ 97 CapCst2 AnnCst2 CC2_ 97 CapCst3 AnnCst3 CC3_ 97 CapCst4 AnnCst4 CC4_ 97 940 941 943 944 945 946 947 949 950 951 953 954 955 956 957 958 959 960 961 962 963 964 965 966 February 14, 2003 Page 24 of 24 I& S_ MPCT_ Final. xls: Costs


[Federal Register Volume 77, Number 227 (Monday, November 26, 2012)]
[Notices]
[Pages 70433-70434]
[FR Doc No: 2012-28547]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. RM98-1-000]

Records Governing Off-the-Record Communications; Public Notice

    This constitutes notice, in accordance with 18 CFR 385.2201(b), of
the receipt of prohibited and exempt off-the-record communications.
    Order No. 607 (64 FR 51222, September 22, 1999) requires Commission
decisional employees, who make or receive a prohibited or exempt off-
the-record communication relevant to the merits of a contested
proceeding, to deliver to the Secretary of the Commission, a copy of
the communication, if written, or a summary of the substance of any
oral communication.
    Prohibited communications are included in a public, non-decisional
file associated with, but not a part of, the decisional record of the
proceeding. Unless the Commission determines that the prohibited
communication and any responses thereto should become a part of the
decisional record, the prohibited off-the-record communication will not
be considered by the Commission in reaching its decision. Parties to a
proceeding may seek the opportunity to respond to any facts or
contentions made in a prohibited off-the-record communication, and may
request that the Commission place the prohibited communication and
responses thereto in the decisional record. The Commission will grant
such a request only when it determines that fairness so requires. Any
person identified below as having made a prohibited off-the-record
communication shall serve the document on all parties listed on the
official service list for the applicable proceeding in accordance with
Rule 2010, 18 CFR 385.2010.
    Exempt off-the-record communications are included in the decisional
record of the proceeding, unless the communication was with a
cooperating agency as described by 40 CFR 1501.6, made under 18 CFR
385.2201(e)(1)(v).
    The following is a list of off-the-record communications recently
received by the Secretary of the Commission. The communications

listed are grouped by docket numbers in ascending order. These filings
are available for review at the Commission in the Public Reference Room
or may be viewed on the Commission's Web site at http://www.ferc.gov
using the eLibrary link. Enter the docket number, excluding the last
three digits, in the docket number field to access the document. For
assistance, please contact FERC, Online Support at
<EMAIL_ADDRESS>or toll free at<PHONE_NUMBER>, or for TTY,
contact<PHONE_NUMBER>.

------------------------------------------------------------------------
             Docket No.               Filed date  Presenter or requester
------------------------------------------------------------------------
Prohibited:
    1. CP11-515-000................     11-19-12  Minisink Resident.\1\
Exempt:
    1. CP12-29-000.................     10-26-12  FERC Staff.\2\
    2. CP11-161-000................      11-8-12  Hon. Barbara Buono.
    3. EL11-50-000.................     11-16-12  U.S. Congress.\3\
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\1\ Distributed protest card regarding the 11-15-12 Commission Meeting.
\2\ Phone record.
\3\ Letter signed by 13 members of the Congress of the United States.

    Dated: November 19, 2012.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2012-28547 Filed 11-23-12; 8:45 am]
BILLING CODE 6717-01-P