[Federal Register Volume 84, Number 50 (Thursday, March 14, 2019)]
[Notices]
[Pages 9345-9346]
[FR Doc No: 2019-04765]

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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

[Docket No. FDA-2019-D-0661]

Modifications to Compliance Policy for Certain Deemed Tobacco
Products; Draft Guidance for Industry; Availability

AGENCY: Food and Drug Administration, HHS.

ACTION: Notice of availability.

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SUMMARY: The Food and Drug Administration (FDA) is announcing the
availability of a draft guidance for industry entitled ``Modifications
to Compliance Policy for Certain Deemed Tobacco Products.'' The draft
guidance discusses changes to the compliance policies for premarket
review requirements for certain deemed tobacco products and describes
how FDA intends to prioritize its enforcement resources with regard to
the marketing of certain deemed tobacco products that do not have
premarket authorization.

DATES: Submit either electronic or written comments on the draft
guidance by April 15, 2019 to ensure that the Agency considers your
comment on this draft guidance before it begins work on the final
version of the guidance.

ADDRESSES: You may submit comments on any guidance at any time as
follows:

Electronic Submissions

    Submit electronic comments in the following way:
     Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments. Comments submitted
electronically, including attachments, to https://www.regulations.gov
will be posted to the docket unchanged. Because your comment will be
made public, you are solely responsible for ensuring that your comment
does not include any confidential information that you or a third party
may not wish to be posted, such as medical information, your or anyone
else's Social Security number, or confidential business information,
such as a manufacturing process. Please note that if you include your
name, contact information, or other information that identifies you in
the body of your comments, that information will be posted on https://www.regulations.gov.
     If you want to submit a comment with confidential
information that you do not wish to be made available to the public,
submit the comment as a written/paper submission and in the manner
detailed (see ``Written/Paper Submissions'' and ``Instructions'').

Written/Paper Submissions

    Submit written/paper submissions as follows:
     Mail/Hand Delivery/Courier (for written/paper
submissions): Dockets Management Staff (HFA-305), Food and Drug
Administration, 5630 Fishers Lane, Rm. 1061, Rockville, MD 20852.
     For written/paper comments submitted to the Dockets
Management Staff, FDA will post your comment, as well as any
attachments, except for information submitted, marked and identified,
as confidential, if submitted as detailed in ``Instructions.''
    Instructions: All submissions received must include the Docket No.
FDA-2019-D-0661 for ``Modifications to Compliance Policy for Certain
Deemed Tobacco Products.'' Received comments will be placed in the
docket and, except for those submitted as ``Confidential Submissions,''
publicly viewable at https://www.regulations.gov or at the Dockets
Management Staff between 9 a.m. and 4 p.m., Monday through Friday.
     Confidential Submissions--To submit a comment with
confidential information that you do not wish to be made publicly
available, submit your comments only as a written/paper submission. You
should submit two copies total. One copy will include the information
you claim to be confidential with a heading or cover note that states
``THIS DOCUMENT CONTAINS CONFIDENTIAL INFORMATION.'' The Agency will
review this copy, including the claimed confidential information, in
its consideration of comments. The second copy, which will have the
claimed confidential information redacted/blacked out, will be
available for public viewing and posted on https://www.regulations.gov.
Submit both copies to the Dockets Management Staff. If you do not wish
your name and contact information to be made publicly available, you
can provide this information on the cover sheet and not in the body of
your comments and you must identify this information as
``confidential.'' Any information marked as ``confidential'' will not
be disclosed except in accordance with 21 CFR 10.20 and other
applicable disclosure law. For more information about FDA's posting of
comments to public dockets, see 80 FR 56469, September 18, 2015, or
access the information at: https://www.gpo.gov/fdsys/pkg/FR-2015-09-18/pdf/2015-23389.pdf.
    Docket: For access to the docket to read background documents or
the electronic and written/paper comments received, go to https://www.regulations.gov and insert the docket number, found in brackets in
the heading of this document, into the ``Search'' box and follow the
prompts and/or go to the Dockets Management Staff, 5630 Fishers Lane,
Rm. 1061, Rockville, MD 20852.
    You may submit comments on any guidance at any time (see 21 CFR
10.115(g)(5)).
    Submit written requests for single copies of this draft guidance to
the Center for Tobacco Products, Food and Drug Administration, Document
Control Center, 10903 New Hampshire Ave., Bldg. 71, Rm. G335, Silver
Spring, MD 20993-0002. Send one self-addressed

adhesive label to assist that office in processing your request or
include a fax number to which the draft guidance may be sent. See the
SUPPLEMENTARY INFORMATION section for information on electronic access
to the draft guidance.

FOR FURTHER INFORMATION CONTACT: Gerie Voss, Center for Tobacco
Products, Food and Drug Administration, Document Control Center, 10903
New Hampshire Ave., Bldg. 71, Rm. G335, Silver Spring, MD 20993-0002,
email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

I. Background

    FDA is announcing the availability of a draft guidance for industry
entitled ``Modifications to Compliance Policy for Certain Deemed
Tobacco Products.''
    The Family Smoking Prevention and Tobacco Control Act (Pub. L. 111-
31) (Tobacco Control Act) granted FDA the authority to regulate the
manufacture, marketing, and distribution of cigarettes, cigarette
tobacco, roll-your-own (RYO) tobacco, and smokeless tobacco products to
protect public health generally and to reduce tobacco use by minors.
The Tobacco Control Act also gave FDA the authority to issue
regulations deeming other products that meet the statutory definition
of a tobacco product to be subject to chapter IX of the Federal Food,
Drug, and Cosmetic Act (FD&C Act).
    In accordance with that authority, on May 10, 2016, FDA issued a
final rule entitled ``Deeming Tobacco Products to be Subject to the
Federal Food, Drug, and Cosmetic Act, as Amended by the Family Smoking
Prevention and Tobacco Control Act; Restrictions on the Sale and
Distribution of Tobacco Products and Required Warning Statements for
Tobacco Products'' (the final deeming rule) deeming all products that
meet the statutory definition of a tobacco product, except accessories
of deemed tobacco products, to be subject to FDA's tobacco product
authority. This included electronic nicotine delivery systems (ENDS),
cigars, waterpipe (hookah) tobacco, pipe tobacco, nicotine gels, and
dissolvables that were not already subject to the FD&C Act, and other
tobacco products that may be developed in the future (81 FR 28974 at
28976, May 10, 2016).
    Among other requirements, these statutory provisions and
implementing regulations prohibit sales of tobacco products to minors
and impose certain premarket-review requirements for new tobacco
products--i.e., those that were not commercially marketed in the United
States as of February 15, 2007. In addition, the preamble to the final
deeming rule explained that, for deemed tobacco products on the market
as of August 8, 2016, FDA did not intend to initiate enforcement for
failure to have premarket authorization during two compliance periods:
One for submission and FDA receipt of applications and one for
obtaining premarket authorization (81 FR 28974 at 29011).
    In May 2017, FDA published a guidance document entitled ``Three-
Month Extension of Certain Tobacco Product Compliance Deadlines Related
to the Final Deeming Rule'' under which the Agency, as a matter of
enforcement discretion, stated its intention not to begin enforcement
for an additional 3 months for all future compliance dates for
requirements under the final deeming rule. In July 2017, FDA announced
a new comprehensive plan for tobacco and nicotine regulation that would
serve as a multiyear roadmap. In an effort to strike an appropriate
balance between regulation and encouraging development of innovative
tobacco products that may be less dangerous than cigarettes, the Agency
announced that it would be providing targeted relief on some timelines
described in the preamble to the final deeming rule. In accordance with
this comprehensive plan announcement, in August 2017, FDA stated its
intention to further extend the period during which it would not
initiate enforcement action for requirements under the final deeming
rule (``August 2017 Compliance Policy'').
    Recent data has documented a significant increase in youth use of
ENDS products. Data from the 2018 National Youth Tobacco Survey, as
described in the guidance, reveals the magnitude in the increase of
youth use of ENDS products. In addition, evidence from the 2016-2017
(Wave 4) Population Assessment of Tobacco and Health (PATH) Study and
other studies, as described in the guidance, indicates that minors are
attracted to flavored ENDS products. In light of this public health
threat, FDA has reconsidered and, in its discretion, plans to modify
the August 2017 Compliance Policy as to the premarket authorization
requirements for certain flavored ENDS products that were on the market
on August 8, 2016, and to replace it with a new policy as described in
the draft guidance.
    The draft guidance is intended to discuss how FDA plans to
prioritize its enforcement resources with regard to certain deemed
tobacco products in the United States that do not have the required FDA
premarket authorization for marketing. Goals of the guidance are to
encourage more prompt filing of premarket submissions for certain ENDS
products, to focus the Agency's enforcement resources where there is a
greater threat to public health, and to balance that public health
threat against the potential benefit to providing adult smokers
noncombustible options to allow them to completely switch from the use
of combustible products.

II. Significance of Draft Guidance

    FDA is issuing this draft guidance consistent with FDA's good
guidance practices regulation (21 CFR 10.115). The draft guidance, when
finalized, will represent the current thinking of FDA on the compliance
policy for certain deemed tobacco products. It does not establish any
rights for any person and is not binding on FDA or the public. You can
use an alternative approach if it satisfies the requirements of the
applicable statutes and regulations. This guidance is not subject to
Executive Order 12866.

III. Paperwork Reduction Act of 1995

    This draft guidance refers to previously approved collections of
information found in FDA regulations. These collections of information
are subject to review by the Office of Management and Budget (OMB)
under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520). The
collections of information in 21 CFR 1107.1(b) and (c) have been
approved under 0910-0684; the collections of information under section
910 of the FD&C Act (21 U.S.C. 387j) have been approved under OMB
control number 0910-0768. The collections of information in section
905(j) of the FD&C Act (21 U.S.C. 387e(j)) have been approved under OMB
control number 0910-0673.

IV. Electronic Access

    Persons with access to the internet may obtain an electronic
version of the draft guidance at either https://www.regulations.gov or
https://www.fda.gov/TobaccoProducts/Labeling/RulesRegulationsGuidance/default.htm.

    Dated: March 11, 2019.
Scott Gottlieb,
Commissioner of Food and Drugs.
[FR Doc. 2019-04765 Filed 3-13-19; 8:45 am]
BILLING CODE 4164-01-P


[Federal Register Volume 88, Number 21 (Wednesday, February 1, 2023)]
[Notices]
[Pages 6807-6808]
[FR Doc No: 2023-02049]

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DEPARTMENT OF TRANSPORTATION

Federal Motor Carrier Safety Administration

[Docket No. FMCSA-2022-0241]

Parts and Accessories Necessary for Safe Operation; Exemption
Application From DJS Fundraising, Inc.

AGENCY: Federal Motor Carrier Safety Administration (FMCSA), DOT.

ACTION: Notice of application for exemption; request for comments.

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SUMMARY: The Federal Motor Carrier Safety Administration (FMCSA)
requests public comment on DJS Fundraising, Inc.'s (DJS) application
for an exemption from the requirement that lighting devices be steady
burning. The exemption would allow the company to operate commercial
motor vehicles (CMVs) equipped with a module manufactured by
Intellistop, Inc. (Intellistop) which pulses the rear clearance,
identification, and brake lamps from a low-level of lighting intensity
to a high-level of lighting intensity 4 times in 2 seconds when the
brakes are applied. FMCSA requests public comment on the applicant's
request for exemption.

DATES: Comments must be received on or before March 3, 2023.

ADDRESSES: You may submit comments identified by Federal Docket
Management System (FDMS) Number FMCSA-2022-0241 by any of the following
methods:
     Federal eRulemaking Portal: www.regulations.gov. See the
Public Participation and Request for Comments section below for further
information.
     Mail: Dockets Operations, U.S. Department of
Transportation, 1200 New Jersey Avenue SE, West Building, Ground Floor,
Room W12-140, Washington, DC 20590-0001.
     Hand Delivery or Courier: West Building, Ground Floor,
Room W12-140, 1200 New Jersey Avenue SE, between 9 a.m. and 5 p.m.
E.T., Monday through Friday, except Federal holidays.
     Fax:<PHONE_NUMBER>.
    Each submission must include the Agency name and the docket number
(FMCSA-2022-0241) for this notice. Note that DOT posts all comments
received without change to www.regulations.gov, including any personal
information included in a comment. Please see the Privacy Act heading
below.
    Docket: For access to the docket to read background documents or
comments, go to www.regulations.gov at any time or visit Room W12-140
on the ground level of the West Building, 1200 New Jersey Avenue SE,
Washington, DC, between 9 a.m. and 5 p.m., ET, Monday through Friday,
except Federal holidays. To be sure someone is there to help you,
please call<PHONE_NUMBER> or<PHONE_NUMBER> before visiting Dockets
Operations.
    Privacy Act: In accordance with 49 U.S.C. 31315(b), DOT solicits
comments from the public to better inform its exemption process. DOT
posts these comments, without edit, including any personal information
the commenter provides, to www.regulations.gov. As described in the
system of records notice DOT/ALL 14-FDMS, which can be reviewed at
https://www.transportation.gov/privacy, the comments are searchable by
the name of the submitter.

FOR FURTHER INFORMATION CONTACT: Mr. Jos[eacute] R. Cestero, Vehicle
and Roadside Operations Division, Office of Carrier, Driver, and
Vehicle Safety, FMCSA, at<PHONE_NUMBER>, or by email at
[email protected].
    If you have questions on viewing or submitting material to the
docket, contact Dockets Operations at<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

I. Public Participation and Request for Comments

    FMCSA encourages you to participate by submitting comments and
related materials.

Submitting Comments

    If you submit a comment, please include the docket number for this
notice (FMCSA-2022-0241), indicate the specific section of this
document to which the comment applies, and provide a reason for
suggestions or recommendations. You may submit your comments and
material online or by fax, mail, or hand delivery, but please use only
one of these means. FMCSA recommends that you include your name and a
mailing address, an email address, or a phone number in the body of
your document so the Agency can contact you if it has questions
regarding your submission.
    To submit your comment online, go to www.regulations.gov and put
the docket number ``FMCSA-2022-0241'' in the keyword box, and click
``Search.'' Next, sort the results by ``Posted (Newer-Older),'' choose
the first notice listed, click the ``Comment'' button, and type your
comment into the text box on the following screen. Choose whether you
are submitting your comment as an individual or on behalf of a third
party and then submit. If you submit your comments by mail or hand
delivery, submit them in an unbound format, no larger than 8\1/2\ by 11
inches, suitable for copying and electronic filing. If you submit
comments by mail and would like to know that they reached the facility,
please enclose a stamped, self-addressed postcard or envelope. FMCSA
will consider all comments and material received during the comment
period.

II. Legal Basis

    FMCSA has authority under 49 U.S.C. 31136(e) and 31315(b) to grant
exemptions from Federal Motor Carrier Safety Regulations (FMCSRs).
FMCSA must publish a notice of each exemption request in the Federal
Register (49 CFR 381.315(a)). The Agency must provide the public an
opportunity to inspect the information relevant to the application,
including any safety analyses that have been conducted. The Agency must
provide an opportunity for public comment on the request.
    The Agency reviews safety analyses and public comments submitted
and determines whether granting the exemption would likely achieve a
level of safety equivalent to, or greater than, the level that would be
achieved by the current regulation (49 CFR 381.305). The Agency must
publish its decision in the Federal Register (49 CFR 381.315(b)) with
the reasons for denying or granting the application and, if granted,
the name of the person or class of persons receiving the exemption and
the regulatory provision from which the exemption is granted. The
notice must specify the effective period and explain the terms and
conditions of the exemption. The exemption may be renewed (49 CFR
381.300(b)).

III. DJS' Request

    DJS seeks an exemption from the requirement in 49 CFR 393.25(e)
that all exterior lamps (both required lamps and any additional lamps)
be steady-

burning, except for turn signal lamps, hazard warning signal lamps,
school bus warning lamps, amber warning lamps or flashing warning lamps
on tow trucks and CMVs transporting oversized loads, and warning lamps
on emergency and service vehicles authorized by State or local
authorities.
    DJS asserts that using the Intellistop module, which pulses the
rear clearance, identification, and brake lamps from a low-level of
lighting intensity to a high-level of lighting intensity 4 times in 2
seconds when the brakes are applied rather than providing steady
burning lamps during the first 2 seconds, would enhance rear signal
systems. DJS submits that pulsing the rear brake lamps of a CMV may
significantly increase visibility and reduce the frequency of rear-end
crashes, and thus would maintain a level of safety that is equivalent
to, or greater than, the level that the CMV would achieve without the
requested exemption.
    On October 7, 2022 (87 FR 61133), FMCSA denied Intellistop's
application for an industry-wide exemption to allow all motor carriers
to operate commercial motor vehicles (CMVs) equipped with Intellistop's
module. FMCSA noted that the decision did not preclude individual motor
carriers from seeking an exemption from 49 CFR 393.25(e) to purchase,
install, and use Intellistop's device subject to terms and conditions
to allow sufficient monitoring of the use of the device. Therefore,
consistent with the October 7, 2022, decision, the Agency seeks public
comment on DJS' carrier-specific exemption application.
    A copy of DJS Fundraising's application is included in the docket
referenced at the beginning of this notice.

IV. Request for Comments

    In accordance with 49 U.S.C. 31315(b), FMCSA requests public
comment from all interested persons on DJS' application for a five-year
exemption from 49 CFR 393.25(e) to allow it to operate CMVs equipped
with Intellistop's module which pulses the rear clearance,
identification and brake lamps from a low-level of lighting intensity
to a high-level of lighting intensity 4 times in 2 seconds when the
brakes are applied.
    All comments received before the close of business on the comment
closing date will be considered and will be available for examination
in the docket at the location listed under the ADDRESSES section of
this notice. Comments received after the comment closing date will be
filed in the public docket and may be considered to the extent
practicable. In addition to late comments, FMCSA will also continue to
file, in the public docket, relevant information that becomes available
after the comment closing date. Interested persons should continue to
examine the public docket for new material.

Larry W. Minor,
Associate Administrator for Policy.
[FR Doc. 2023-02049 Filed 1-31-23; 8:45 am]
BILLING CODE 4910-EX-P


[Federal Register Volume 85, Number 132 (Thursday, July 9, 2020)]
[Notices]
[Pages 41259-41262]
[FR Doc No: 2020-14741]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-89216; File No. SR-LTSE-2020-10]

Self-Regulatory Organizations; Long-Term Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to the Designation of Members for Mandatory Disaster Recovery
Testing Pursuant to Regulation SCI for Calendar Year 2020

July 2, 2020.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on June 22, 2020, Long-Term Stock Exchange, Inc.

(``LTSE'' or the ``Exchange'') filed with the Securities and Exchange
Commission (the ``Commission'') the proposed rule change as described
in Items I and II below, which Items have been prepared by the 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

    LTSE proposes a rule change to amend how the Exchange will
designate certain Members to participate in mandatory disaster recovery
testing pursuant to Regulation SCI and LTSE Rule 2.250 for calendar
year 2020.
    The text of the proposed rule change is available at the Exchange's
website at https://longtermstockexchange.com/, at the principal office
of the Exchange, and at the Commission's Public Reference Room.

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

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

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

1. Purpose
    The Exchange proposes to amend LTSE Rule 2.250 to revise how it
will designate certain Members to participate in mandatory disaster
recovery testing pursuant to Regulation SCI and Rule 2.250 for calendar
year 2020.
    Regulation SCI requires LTSE, as an SCI entity, to maintain
business continuity and disaster recovery plans that provide for
resilient and geographically diverse backup and recovery capabilities
that are reasonably designed to achieve two-hour resumption of critical
SCI systems and next business day resumption of other SCI systems
following a wide-scale disruption.\3\
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    \3\ See Securities Exchange Act Release No. 73639 (November 19,
2014), 79 FR 72252 (December 5, 2014).
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    Regulation SCI and LTSE Rule 2.250 also require LTSE to designate
certain Members \4\ to participate in business continuity and disaster
recovery testing in a manner specified by LTSE and at a frequency of
not less than once every 12 months.\5\ Such testing ordinarily is part
of an annual industry-wide test, which is next scheduled for October
24, 2020.
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    \4\ The term ``Member'' refers to any registered broker or
dealer that has been admitted to membership in the Exchange. A
Member will have the status of a Member of the Exchange as that term
is defined in Section 3(a)(3) of the Act. Membership may be granted
to a sole proprietor, partnership, corporation, limited liability
company, or other organization that is a registered broker or dealer
pursuant to Section 15 of the Act, and which has been approved by
the Exchange. See LTSE Rule 1.160(w).
    \5\ See LTSE Rule 2.250(a), (b).
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    LTSE Rule 2.250 governs mandatory participation in testing of
LTSE's backup systems, and states that LTSE will designate Members that
account for a specified percentage of executed volume on LTSE, measured
on quarterly basis, as required to connect to LTSE's backup systems and
participate in functional and performance testing of such system.\6\
Rule 2.250 further provides that if a Member has not previously been
designated as meeting the volume criteria, such Member will have until
the next calendar quarter before such requirements are applicable.\7\
LTSE currently is not operational and is not expecting to have two
quarters of trading data on which to base its Member designation prior
to the October 24, 2020 test. Thus, as currently written, Rule 2.250
would not permit the Exchange to designate any Members to participate
in the industry-wide test for 2020 because no Members will have the
requisite trading volume on LTSE upon which a designation can be made.
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    \6\ See LTSE Rule 2.250(a), (c).
    \7\ See LTSE Rule 2.250(c).
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    To address the unique circumstances for disaster recovery testing
in 2020, the year in which LTSE will become operational, the Exchange
proposes to add new paragraph (d), which would provide that for
calendar year 2020, notwithstanding paragraphs (b) and (c), which
assign the Exchange responsibility of ``identifying Members that
account for a meaningful percentage of the Exchange's overall volume,''
the Exchange will instead designate at least three Members who have a
meaningful percentage of trading volumes in NMS Stocks across the other
equity exchanges. This would allow the Exchange to identify Members for
industry-wide disaster recovery testing in the absence of the metrics
that will be used in the ordinary course to designate such firms.
    LTSE believes that designating at least three Members who are
likely already to be participating in the industry-wide test by virtue
of their trading activities on other exchanges is likely to reduce the
burdens associated with being designated for disaster recovery testing
by LTSE in absence of significant trading volumes on the Exchange.
Moreover, to reduce the burdens on such Members, the Exchange proposes,
where possible, to designate firms that have already established
connections to its backup systems. This is intended to address the
``notice'' requirements in the existing Rule 2.250.\8\ The Exchange
believes that designating three or more such firms is reasonably
designed to provide the minimum necessary for the maintenance of fair
and orderly markets in the event of the activation of such plans.
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    \8\ See id.
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    LTSE intends to notify Members of their designation for disaster
recovery testing no later than July 10, 2020. With respect to industry-
wide disaster recovery testing in 2021 and beyond, the Exchange will
issue one or more regulatory circulars establishing the standards to be
used for determining which Members contribute a meaningful percentage
of the Exchange's overall volume and thus are required to participate
in functional and performance testing. Such standards will be informed
by the Exchange's actual market and trading data, in accordance with
LTSE Rule 2.250(a)-(c).
    2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6 of the Act,\9\ in general, and
furthers the objectives of Section 6(b)(5) of the Act,\10\ in
particular, in that it is designed to prevent fraudulent and
manipulative acts and practices, promote just and equitable principles
of trade, to foster cooperation and coordination with persons engaged
in facilitating transactions in securities, to remove impediments to
and perfect the mechanism of a free and open market and a national
market system and, in general, to protect investors and the public
interest.
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    \9\ 15 U.S.C. 78f.
    \10\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes that its proposed methodology of designating
Members who have meaningful levels of trading activity on other
exchanges and

who have established connectivity to LTSE's backup systems is
consistent with the protection of investors and the public interest.
The Exchange believes that the proposed rule change will ensure that
the Members necessary to ensure the maintenance of fair and orderly
markets in the event of the activation of LTSE's disaster recovery
plans have been designated consistent with LTSE Rule 2.250 and Rule
1004 of Regulation SCI. Specifically, the proposal will address the
unique circumstances of industry-wide testing taking place within a
short time of when the Exchange commences operations. The Exchange
believes that the proposed rule change balances the objectives of
having Members participate in industry-wide disaster recovery testing,
including LTSE's backup systems, and the burdens on such Members who,
at the time of designation, will not have traded on LTSE.
    As set forth in the SCI Adopting Release, ``SROs have the
authority, and legal responsibility, under Section 6 of the Exchange
Act, to adopt and enforce rules (including rules to comply with
Regulation SCI's requirements relating to BC/DR testing) applicable to
their members or participants that are designed to, among other things,
foster cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
facilitating transactions in securities, to remove impediments to and
perfect the mechanism of a free and open market and a national market
system, and, in general, to protect investors and the public
interest.'' \11\ The Exchange believes that this proposal is consistent
with such authority and legal responsibility.
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    \11\ See supra note 3, at 72350.
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The Exchange believes that
the proposed rule change is designed to promote fair competition among
brokers and dealers and exchanges by ensuring the Exchange can
designate Members to participate in mandatory disaster recovery testing
pursuant to Regulation SCI for calendar year 2020. The Exchange
believes that designating three or more such firms is reasonably
designed to provide the minimum necessary for the maintenance of fair
and orderly markets in the event of the activation of such plans,
thereby promoting intermarket competition between exchanges in
furtherance of the principles of Section 11A(a)(1) of the Act.\12\
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    \12\ 15 U.S.C. 78k-1(a)(1).
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    With respect to intramarket competition, the proposed rule change
seeks to reduce the burdens on Members by only designating Members who
are likely already participating in the industry-wide test by virtue of
their trading activities on other exchanges. Under the proposed rule
change, the Exchange will designate firms that have already established
connections to the Exchange's backup systems. Consequently, LTSE does
not believe that the proposed rule change would impose any burden on
intramarket competition that is not necessary or appropriate in
furtherance of the purposes of the Act.

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

    Written comments were neither solicited nor 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 \13\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\14\
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    \13\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \14\ 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.
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    A proposed rule change filed under Rule 19b-4(f)(6) \15\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\16\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay to permit the
Exchange to notify Members of their designation earlier than would be
possible without a waiver of the operative delay. The Commission
believes that waiver of the 30-day operative delay is consistent with
the protection of investors and the public interest because it would
provide designated members additional time to receive notice of their
designation, and thus prepare for disaster recovery testing with the
Exchange's backup systems. Accordingly, the Commission waives the 30-
day operative delay and designates the proposal operative upon
filing.\17\
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    \15\ 17 CFR 240.19b-4(f)(6).
    \16\ 17 CFR 240.19b-4(f)(6)(iii).
    \17\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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    At any time within 60 days of the filing of 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_ADDRESS>Please include
File Number SR-LTSE-2020-10 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-LTSE-2020-10. 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 LTSE and on its internet website
at https://longtermstockexchange.com/.
    All comments received will be posted without change; the Commission
does not edit personal identifying information from submissions. You
should submit only information that you wish to make available
publicly. All submissions should refer to File Number SR-LTSE-2020-10
and should be submitted on or before July 30, 2020.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
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    \18\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-14741 Filed 7-8-20; 8:45 am]
BILLING CODE 8011-01-P