[Federal Register Volume 83, Number 144 (Thursday, July 26, 2018)]
[Proposed Rules]
[Pages 35442-35444]
[FR Doc No: 2018-15975]

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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 165

[Docket Number USCG-2018-0232]
RIN 1625-AA00

Safety Zone; Blue Angels Air Show; St. Johns River, Jacksonville,
FL

AGENCY: Coast Guard, DHS.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Coast Guard proposes to establish a temporary safety zone
on the waters of the St. Johns River in the vicinity of Naval Air
Station (NAS) Jacksonville, Florida during the Blue Angels Air Show.
This proposed rulemaking would prohibit persons and vessels from being
in the safety zone unless authorized by the Captain of the Port (COTP)
Jacksonville or a designated representative. We invite your comments on
this proposed rulemaking.

DATES: Comments and related material must be received by the Coast
Guard on or before August 27, 2018.

ADDRESSES: You may submit comments identified by docket number USCG-
2018-0232--using the Federal eRulemaking Portal at http://www.regulations.gov. See the ``Public Participation and Request for
Comments'' portion of the SUPPLEMENTARY INFORMATION section for further
instructions on submitting comments.

FOR FURTHER INFORMATION CONTACT: If you have questions about this
proposed rulemaking, call or email Lieutenant Junior Grade Emily Sysko,
Chief,

Waterways Management Division, U.S. Coast Guard; telephone 904-714-
7616, email [email protected].

SUPPLEMENTARY INFORMATION:

I. Table of Abbreviations

CFR Code of Federal Regulations
DHS Department of Homeland Security
FR Federal Register
NPRM Notice of proposed rulemaking
Sec.  Section
U.S.C. United States Code

II. Background, Purpose, and Legal Basis

    On May 18, 2018, NAS Jacksonville submitted a marine event
application to the Coast Guard for the Blue Angels Air Show that will
take place from October 26, 2018 through October 28, 2018. The air show
will consist of various flight demonstrations over the St. Johns River
in vicinity of NAS Jacksonville. Over the years, there have been
unfortunate instances of aircraft mishaps that involved crashing during
performances at various air shows around the world. Occasionally, these
incidents result in a wide area of scattered debris in the water that
can damage property or cause significant injury or death to the public
observing the air shows. The Captain of the Port (COTP) Jacksonville
has determined that a safety zone is necessary to protect the general
public from hazards associated with aerial flight demonstrations.
    The purpose of the rulemaking is to ensure the safety of vessels
and persons during the air show on the navigable waters of the St.
Johns River in vicinity of NAS Jacksonville, Florida. The Coast Guard
proposes this rulemaking under authority in 33 U.S.C. 1231.

III. Discussion of Proposed Rule

    The COTP proposes to establish a safety zone daily from 8:00 a.m.
until 5:00 p.m. on October 26, 2018 through October 28, 2018. The
safety zone will encompass all waters within an area approximately
three quarters of a mile parallel to the shoreline, and one mile out
into the St. Johns River in Jacksonville, FL. The duration of the zone
is intended to ensure the safety of the public on these navigable
waters during the aerial flight demonstrations. No vessel or person
would be permitted to enter the safety zone without obtaining
permission from the COTP or a designated representative. The regulatory
text we are proposing appears at the end of this document.

IV. Regulatory Analyses

    We developed this proposed rule after considering numerous statutes
and Executive orders related to rulemaking. Below we summarize our
analyses based on a number of these statutes and Executive orders and
we discuss First Amendment rights of protestors.

A. Regulatory Planning and Review

    Executive Orders 12866 and 13563 direct agencies to assess the
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits. Executive Order 13771 directs agencies to control
regulatory costs through a budgeting process. This NPRM has not been
designated a ``significant regulatory action,'' under Executive Order
12866. Accordingly, the NPRM has not been reviewed by the Office of
Management and Budget (OMB), and pursuant to OMB guidance it is exempt
from the requirements of Executive Order 13771.
    This regulatory action determination is based on the size,
location, duration, and time-of-day of the safety zone. Vessel traffic
would be able to safely transit around this safety zone which would
impact a small designated area of the St. Johns River for nine hours on
each of the three days the air show is occurring. Moreover, the Coast
Guard would issue a Broadcast Notice to Mariners via VHF-FM marine
channel 16 about the zone, and the rule would allow vessels to seek
permission to enter the zone.

B. Impact on Small Entities

    The Regulatory Flexibility Act of 1980, 5 U.S.C. 601-612, as
amended, requires Federal agencies to consider the potential impact of
regulations on small entities during rulemaking. The term ``small
entities'' comprises small businesses, not-for-profit organizations
that are independently owned and operated and are not dominant in their
fields, and governmental jurisdictions with populations of less than
50,000. The Coast Guard certifies under 5 U.S.C. 605(b) that this
proposed rule would not have a significant economic impact on a
substantial number of small entities.
    While some owners or operators of vessels intending to transit the
safety zone may be small entities, for the reasons stated in section
IV.A above, this proposed rule would not have a significant economic
impact on any vessel owner or operator.
    If you think that your business, organization, or governmental
jurisdiction qualifies as a small entity and that this rule would have
a significant economic impact on it, please submit a comment (see
ADDRESSES) explaining why you think it qualifies and how and to what
degree this rule would economically affect it.
    Under section 213(a) of the Small Business Regulatory Enforcement
Fairness Act of 1996 (Pub. L. 104-121), we want to assist small
entities in understanding this proposed rule. If the rule would affect
your small business, organization, or governmental jurisdiction and you
have questions concerning its provisions or options for compliance,
please contact the person listed in the FOR FURTHER INFORMATION CONTACT
section. The Coast Guard will not retaliate against small entities that
question or complain about this proposed rule or any policy or action
of the Coast Guard.

C. Collection of Information

    This proposed rule would not call for a new collection of
information under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-
3520).

D. Federalism and Indian Tribal Governments

    A rule has implications for federalism under Executive Order 13132,
Federalism, if it has a substantial direct effect on the States, on the
relationship between the national government and the States, or on the
distribution of power and responsibilities among the various levels of
government. We have analyzed this proposed rule under that Order and
have determined that it is consistent with the fundamental federalism
principles and preemption requirements described in Executive Order
13132.
    Also, this proposed rule does not have tribal implications under
Executive Order 13175, Consultation and Coordination with Indian Tribal
Governments, because it would not have a substantial direct effect on
one or more Indian tribes, on the relationship between the Federal
Government and Indian tribes, or on the distribution of power and
responsibilities between the Federal Government and Indian tribes. If
you believe this proposed rule has implications for federalism or
Indian tribes, please contact the person listed in the FOR FURTHER
INFORMATION CONTACT section.

E. Unfunded Mandates Reform Act

    The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538)
requires Federal agencies to assess the effects of their discretionary
regulatory actions. In particular, the Act addresses actions that may
result in the expenditure by a State, local, or tribal government, in
the aggregate, or by the private sector of $100,000,000 (adjusted for
inflation) or more in any one year. Though this

proposed rule would not result in such an expenditure, we do discuss
the effects of this rule elsewhere in this preamble.

F. Environment

    We have analyzed this proposed rule under Department of Homeland
Security Directive 023-01 and Commandant Instruction M16475.1D, which
guide the Coast Guard in complying with the National Environmental
Policy Act of 1969 (42 U.S.C. 4321-4370f), and have made a preliminary
determination that this action is one of a category of actions that do
not individually or cumulatively have a significant effect on the human
environment. This proposed rule involves a safety zone lasting nine
hours daily that would prohibit persons and vessels from entering an
area of approximately one square mile. Normally such actions are
categorically excluded from further review under paragraph L60(a) of
Appendix A, Table 1 of DHS Instruction Manual 023-01-001-01, Rev. 01. A
preliminary Record of Environmental Consideration supporting this
determination is available in the docket where indicated under
ADDRESSES. We seek any comments or information that may lead to the
discovery of a significant environmental impact from this proposed
rule.

G. Protest Activities

    The Coast Guard respects the First Amendment rights of protesters.
Protesters are asked to contact the person listed in the FOR FURTHER
INFORMATION CONTACT section to coordinate protest activities so that
your message can be received without jeopardizing the safety or
security of people, places, or vessels.

V. Public Participation and Request for Comments

    We view public participation as essential to effective rulemaking,
and will consider all comments and material received during the comment
period. Your comment can help shape the outcome of this rulemaking. If
you submit a comment, please include the docket number for this
rulemaking, indicate the specific section of this document to which
each comment applies, and provide a reason for each suggestion or
recommendation.
    We encourage you to submit comments through the Federal eRulemaking
Portal at http://www.regulations.gov. If your material cannot be
submitted using http://www.regulations.gov, contact the person in the
FOR FURTHER INFORMATION CONTACT section of this document for alternate
instructions.
    We accept anonymous comments. All comments received will be posted
without change to http://www.regulations.gov and will include any
personal information you have provided. For more about privacy and the
docket, visit http://www.regulations.gov/privacyNotice.
    Documents mentioned in this NPRM as being available in the docket,
and all public comments, will be in our online docket at http://www.regulations.gov and can be viewed by following that website's
instructions. Additionally, if you go to the online docket and sign up
for email alerts, you will be notified when comments are posted or a
final rule is published.

List of Subjects in 33 CFR Part 165

    Harbors, Marine safety, Navigation (water), Reporting and
recordkeeping requirements, Security measures, Waterways.

    For the reasons discussed in the preamble, the Coast Guard proposes
to amend 33 CFR part 165 as follows:

PART 165--REGULATED NAVIGATION AREAS AND LIMITED ACCESS AREAS

0
1. The authority citation for part 165 continues to read as follows:

    Authority: 33 U.S.C. 1231; 50 U.S.C. 191; 33 CFR 1.05-1, 6.04-1,
6.04-6 and 160.5; Department of Homeland Security Delegation No.
0170.1.

0
2. Add Sec.  165.T07-0232 to read as follows:

Sec.  165.T07-0232  Safety Zone; Blue Angels Air Show; St. Johns River,
Jacksonville, FL.

    (a) Location. The following area is a safety zone: All waters of
the St. Johns River, from surface to bottom, encompassed by a line
connecting the following points beginning at 30[deg]13'41'' N;
081[deg]39'45'' W, thence due east to, 30[deg]13'41'' N;
081[deg]38'35'' W, thence south to 30[deg]14'27'' N; 081[deg]38'35'' W,
thence west to 30[deg]14'27'' N; 081[deg]39'45'' W, and thence along
the shore line back to the beginning point. These coordinates are based
on North American Datum 1983.
    (b) Definitions. As used in this section, designated representative
means a Coast Guard Patrol Commander, including a Coast Guard coxswain,
petty officer, or other officer operating a Coast Guard vessel and a
Federal, State, and local officer designated by or assisting the
Captain of the Port Jacksonville (COTP) in the enforcement of the
safety zone.
    (c) Regulations. (1) All persons and vessels are prohibited from
entering, transiting through, anchoring in, or remaining within the
regulated area unless authorized by the Captain of the Port
Jacksonville or a designated representative.
    (2) Persons and vessels desiring to enter, transit through, anchor
in, or remain within the regulated area may contact the Captain of the
Port Jacksonville by telephone at<PHONE_NUMBER>, or a designated
representative via VHF-FM radio on channel 16, to request
authorization. If authorization is granted, all persons and vessels
receiving such authorization must comply with the instructions of the
COTP Jacksonville or a designated representative
    (3) The Coast Guard will provide notice of the regulated area
through Broadcast Notice to Mariners via VHF-FM channel 16 or by on-
scene designated representatives.
    (d) Enforcement period. This section will be enforced daily from 8
a.m. until 5:00 p.m. on October 26, 2018 through October 28, 2018.

    Dated: July 19, 2018
T.C. Wiemers,
Captain, U.S. Coast Guard, Captain of the Port Jacksonville.
[FR Doc. 2018-15975 Filed 7-25-18; 8:45 am]
BILLING CODE 9110-04-P


[Federal Register Volume 78, Number 243 (Wednesday, December 18, 2013)]
[Notices]
[Pages 76689-76691]
[FR Doc No: 2013-30039]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-71055; File No. SR-BX-2013-059]

Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend the
Fee Schedule Under Exchange Rule 7018(a) With Respect to Transactions
in Securities Priced at $1 per Share or More

December 12, 2013.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on November 29, 2013, NASDAQ OMX BX, Inc. (``BX'' or ``Exchange'')
filed with the Securities and Exchange Commission (``SEC'' or
``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the Exchange. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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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 amend the fee schedule under Exchange Rule
7018(a) with respect to transactions in securities priced at $1 per
share or more. The Exchange will implement the proposed rule change on
December 2, 2013.
    The text of the proposed rule change is also available on the
Exchange's Web site at http://nasdaqomxbx.cchwallstreet.com, at the
principal office of the Exchange, and at the Commission's Public
Reference Room.

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

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

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

    The Exchange is proposing several changes to its fees and rebates
applicable to transactions in securities priced at $1 or more. First,
the Exchange is proposing to add a new tier for members that are active
in both the NASDAQ OMX BX Equities System (the ``BX Equities System'')
and BX Options. As such, the tier is similar to various tiers that have
previously been introduced by the NASDAQ Stock Market for members of
that exchange that are active in both the NASDAQ Market Center and the
NASDAQ Options Market.\3\ Under the proposed tier, a member will be
charged $0.0016 per share executed when providing liquidity through a
displayed order if the member (i) has a daily average volume of
liquidity provided in all securities during the month of 2 million or
more shares through one or more BX Equities System market participant
identifiers (``MPIDs''), and (ii) adds Options Market Maker volume
under Chapter XV of BX Options rules of 20,000 or more contracts per
day during the month.
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    \3\ See NASDAQ Rule 7018(a).
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    The proposed tier recognizes the prevalence of trading in which
members simultaneously trade different asset classes within the same
strategy. Because cash equities and options markets are linked, with
liquidity and trading patterns on one market affecting those on the
other, the Exchange believes that a pricing incentive that encourages
market participant activity in BX Options will also support price
discovery and liquidity provision in the BX Equities System.
    Second, the Exchange is proposing new pricing tiers for midpoint
pegged orders, a non-displayed order whose price is pegged to the
midpoint between the national best bid and national best offer. Thus,
midpoint pegged orders provide price improvement when they execute that
is equivalent to the difference between the price of the order and the
national best bid or offer (as applicable). Currently, midpoint orders
are charged a fee of $0.0015 per share executed when they provide
liquidity, which is lower than the fee of $0.0020 per share executed
for displayed orders and the current fee of $0.0025 \4\ per share
executed for non-displayed orders other than midpoint orders. Thus, the
pricing structure is designed to encourage members that provide
liquidity to do so in a manner that provides price improvement. To
further encourage the use of these orders, BX is proposing two new
volume tiers for midpoint pegged orders. First, if a member provides an
average daily volume of 2 million or more shares of liquidity using
midpoint pegged orders during the month, the fee for such orders will
be $0.0010 per share executed. Second, if a member provides an average
daily volume of 1 million or more, but fewer than 2 million, shares of
liquidity using midpoint pegged orders during the month, the fee for
such orders will $0.00125 per share executed. For lower volumes, the
fee will remain $0.0015 per share executed.
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    \4\ As discussed below, BX is proposing increasing this fee to
$0.0028 per share executed.
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    Third, consistent with the goal of encouraging greater use of
midpoint pegged orders to provide price improvement, BX is increasing
the fee for non-displayed orders other than midpoint pegged orders to
$0.0028 per share executed. Thus, to the extent that a member wishes to
offer non-displayed liquidity on BX, it will be provided with a
meaningful pricing incentive to do so using midpoint pegged orders,
which benefit the counterparty accessing liquidity through price
improvement, rather than non-displayed orders, which neither offer
price improvement nor contribute to pre-trade price discovery.
    Fourth, BX is proposing to decrease the rebate for orders that
access liquidity and that do not qualify for any other rebate category,
from $0.0007 per share executed to $0.0004 per share executed.\5\
Currently, BX offers several

incentive rebate tiers that are quite easy for a member to achieve.
First, BX offers a rebate tier of $0.0011 per share executed for an
order that access [sic] liquidity at BX using a routable order. Second,
BX offers the same rebate for an order that access [sic] liquidity if
entered through an MPID through which the member provides an average
daily volume of at least 25,000, but less than 1 million shares of
liquidity during the month. Finally, BX offers a rebate of $0.0013 per
share executed for an order that accesses liquidity if entered through
an MPID through which the member (i) provides an average daily volume
of 1 million or more shares of liquidity during the month or (ii)
access [sic] an average daily volume of 3.5 million or more shares of
liquidity. Thus, BX believes that the change in the rebate rate
otherwise applicable will incentivize market participants to seek to
qualify for more favorable pricing, either by providing or accessing
more liquidity or by using BX's routing services.
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    \5\ It should be noted, however, that rebates are not paid for
orders that access liquidity provided by midpoint pegged orders,
since the applicable price improvement ($0.005 per share executed on
a security with a $0.01 spread, and more for securities with wider
spreads) would in all cases exceed the rebates offered for orders
accessing other liquidity.
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    Finally, BX is amending the definition of ``Consolidated Volume''
in Rule 7018 to exclude executed orders with a size of less than one
round lot. The amended definition refers to ``the total consolidated
volume reported to all consolidated transaction reporting plans by all
exchanges and trade reporting facilities . . . during the month,
excluding executed orders with a size of less than one round lot.'' The
exclusion for executed orders of less than a round lot is necessitated
by recent amendments to the Consolidated Tape Association and NASDAQ
UTP Plans \6\ under which odd lots must be reported to the consolidated
tape. These amendments are taking effect in December 2013. When
calculating a member's percentage, BX has historically included odd
lots in the member's own total volume, but excluded them from
Consolidated Volume, since they have not historically been included in
the trades reported to consolidated transaction reporting plans.
Accordingly, including odd lots in the calculation of a member's
percentage of Consolidated Volume would make it more difficult for
members to achieve certain percentages, and thus could constitute an
unintended de facto price increase. To avoid this result, odd lots will
be excluded from the definition of Consolidated Volume for pricing
purposes, but would continue to be included in the member's own total
volume.
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    \6\ Securities Exchange Act Release No. 70794 (October 31,
2013), 78 FR 66789 (November 6, 2013) (SR-CTA-2013-05); Securities
Exchange Act Release No. 70793 (October 31, 2013), 78 FR 66788
(November 6, 2013) (File No. S7-24-89).
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2. Statutory Basis
    BX believes that the proposed rule change is consistent with the
provisions of Section 6 of the Act,\7\ in general, and Sections 6(b)(4)
and (b)(5) of the Act,\8\ in particular, because it provides for the
equitable allocation of reasonable dues, fees and other charges among
members and issuers and other persons using any facility or system that
the Exchange operates or controls, and it does not unfairly
discriminate between customers, issuers, brokers or dealers.
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    \7\ 15 U.S.C. 78f.
    \8\ 15 U.S.C. 78f(b)(4), (5).
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    The change with respect to a new tier for members active in both
the BX Equities System and BX Options is reasonable because it reflects
the availability of a price reduction for members that support
liquidity on both markets. The change is consistent with an equitable
allocation of fees because the pricing tier requires significant levels
of liquidity provision, which benefits all market participants, and
because activity in BX Options also supports price discovery and
liquidity provision in the BX Equities System due to the increasing
propensity of market participants to be active in both markets and the
influence of each market on the pricing of securities in the other.
Moreover, the new tier has the potential to reduce fees for a wider
range of market participants by introducing a new means of qualifying
for a lower fee for providing liquidity. The change is not unreasonably
discriminatory because market participants may qualify for a still
lower fee without participating in BX Options through participation in
BX's Qualified Liquidity Provider program.
    The changes with respect to new tiers for midpoint pegged orders
are reasonable because they will reduce fees for members that use
higher volumes of midpoint pegged orders to offer price improvement.
The changes are consistent with an equitable allocation of fees because
the Exchange believes that it is equitable to provide financial
incentives, such as the reduced fees in question, to encourage members
to offer price improvement. The changes are not unfairly discriminatory
because they are structured as volumetric pricing tiers, under which
the level of fee reduction increases as the member's volume increases.
Such pricing tiers are widely in use at various national securities
exchanges and have been accepted as consistent with the Act because the
financial benefit offered is correlated to the member's usage of the
market.
    The change with respect to the fee charged to members providing
liquidity through non-displayed orders other than midpoint pegged
orders is reasonable because the fee change may readily be avoided
through use of midpoint pegged orders or displayed orders, both of
which the Exchange believes to be more beneficial to the market than
non-midpoint, non-displayed orders. The change is consistent with an
equitable allocation of fees and is not unfairly discriminatory because
the Exchange believes that it is appropriate to charge a lower fee to
displayed orders, which aid price discovery, and to midpoint pegged
orders, which provide price improvement. The change is also not
unfairly discriminatory because use of non-displayed orders is wholly
voluntary.
    The change to the rebate offered for orders accessing liquidity is
reasonable because it is still consistent with the Exchange's approach
of paying a rebate to orders accessing liquidity, in contrast to most
trading venues, which charge an access fee. Moreover, the change is
consistent with an equitable allocation of fees because members can
readily avoid the change by using routable orders or by offering a
modest volume of liquidity (25,000 shares per day or more) through the
Exchange. Thus, the change is equitable because it incentivizes members
to make greater use of the Exchange's services to receive a higher
rebate. The change is not unfairly discriminatory because it applies
uniformly to all members that opt not to avoid it through the means
described above.
    The change with respect to exclusion of odd lots from the
definition of Consolidated Volume is reasonable because it avoids a de
facto price increase that could occur due to the upcoming requirement
to report odd lots to the consolidated tape. Similarly, the change is
consistent with an equitable allocation of fees and is not unfairly
discriminatory because it will maintain the status quo with respect to
the Qualified Liquidity Provider incentive program, which requires
calculations based on Consolidated Volume. Thus, the change avoids a
potential inequitable and unfair result under which members with
volumes close to a required percentage would be unable to achieve a
pricing tier for which they had formerly qualified.

(B) Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will
result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act, as amended.\9\
BX notes that it operates in a highly competitive market in which
market participants can readily favor competing venues if they deem fee
levels at a particular venue to be excessive, or rebate opportunities
available at other venues to be more favorable. In such an environment,
BX must continually adjust its fees to remain competitive with other
exchanges and with alternative trading systems that have been exempted
from compliance with the statutory standards applicable to exchanges.
Because competitors are free to modify their own fees in response, and
because market participants may readily adjust their order routing
practices, BX believes that the degree to which fee changes in this
market may impose any burden on competition is extremely limited. In
this instance, the changes with respect to midpoint orders and the new
pricing tier for members active in the Exchange's cash equities and
options markets enhances the Exchange's competitiveness by reducing
fees. Likewise, the change with respect to the definition of
Consolidated Volume avoids a potential de facto price increase, thereby
also enhancing the Exchange's competitiveness. The Exchange further
believes that the changes for non-displayed orders and liquidity
accessing orders not qualifying for a pricing tier also increase the
Exchange's competitiveness, because they serve to encourage members to
increase their use of displayed or midpoint pegged orders, or to
increase volume or make greater use of BX's router. Thus, although
price increases, they provide incentives for behavior that may allow
members to reduce their trading costs. Moreover, because there are
numerous competitive alternatives to the use of the Exchange, it is
likely that BX will lose market share as a result of the changes if
they are unattractive to market participants. Accordingly, BX does not
believe that the proposed changes will impair the ability of members or
competing order execution venues to maintain their competitive standing
in the financial markets.
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    \9\ 15 U.S.C. 78f(b)(8).
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(C) Self-Regulatory Organization's Statement on Comments on the
Proposed Rule Change Received From Members, Participants or Others

    No written comments were either solicited or received.

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

    The foregoing change has become effective pursuant to Section
19(b)(3)(A) of the Act \10\ and paragraph (f) of Rule 19b-4 \11\
thereunder. At any time within 60 days of the filing of the proposed
rule change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.
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    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f).
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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-BX-2013-059 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.

All submissions should refer to File Number SR-BX-2013-059. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such filing also will be available
for inspection and copying at the principal office of BX. 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-BX-2013-059 and should be
submitted on or before January 8, 2014.

    For the Commission by the Division of Trading and Markets,
pursuant to delegated authority.\12\
---------------------------------------------------------------------------

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

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-30039 Filed 12-17-13; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 88, Number 53 (Monday, March 20, 2023)]
[Notices]
[Pages 16700-16704]
[FR Doc No: 2023-05536]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-97139; File No. SR-CboeEDGX-2023-014]

Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change To
Amend Its Sponsored Participant Rules 11.3(a) and 11.3(b)(2)

March 14, 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 February 28, 2023, Cboe EDGX Exchange, Inc. (the ``Exchange''
or ``EDGX'') 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 Exchange. The Exchange
filed the proposal as a ``non-controversial'' proposed rule change
pursuant to Section 19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-
4(f)(6) thereunder.\4\ The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    Cboe EDGX Exchange, Inc. (the ``Exchange'' or ``EDGX'') proposes to
amend Exchange Rules 11.3(a)-(b), to: (1) define the term ``Sponsored
Access''; (2) provide that the Sponsored Participant rules of the
Exchange apply only to the trading of equities; and (3) to codify that
the agreement required by and between the Sponsoring Member and
Sponsored Participant must include a provision that any Sponsored
Access relationship must follow the requirements of SEC Rule 15c3-5,
the Market Access Rule (``MAR'').\5\ The text of the proposed rule
change is provided below and in Exhibit 5.\6\
---------------------------------------------------------------------------

    \5\ 17 CFR 240.15c3-5--Risk management controls for brokers or
dealers with market access.
    \6\ The Exchange proposes to implement the proposed changes to
Rule 11.3(a)-(b)(1)-(3) on a date that will be announced via Cboe
Trade Desk, notifying both existing and prospective Sponsoring
Members and Sponsored Participants, of the new rule language and
required contractual provisions.
---------------------------------------------------------------------------

    The text of the proposed rule change is also available on the
Exchange's website (http://markets.cboe.com/us/options/regulation/rule_filings/edgx/), at the Exchange's Office of the Secretary, and at
the Commission's Public Reference Room.

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

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

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

1. Purpose
    The purpose of this filing is to amend Exchange Rule 11.3(a)-(b)
to: (1) define the term ``Sponsored Access''; (2) provide that the
Sponsored Participant rules of the Exchange apply only to the trading
of equities; and (3) to codify that the agreement required by and
between the Sponsoring Member and Sponsored Participant must include a
provision that any Sponsored Access relationship must follow the
requirements of the MAR.
Sponsored Access Definition
    Per current Exchange rules a ``Sponsored Participant'' \7\ may be a
Member \8\ or non-Member of the Exchange whose direct electronic access
to the Exchange is authorized by a Sponsoring Member \9\ pursuant to
the requirements set forth in Exchange Rule 11.3(b)(1)-(3), ``Sponsored
Participants''. The Exchange proposes to amend Rule 11.3(a) to include
the following definition, ``Sponsored Access shall mean an arrangement
whereby a Member permits its Sponsored Participants to enter orders
into the Exchange's System that bypass the Member's trading system and
are routed directly to the Exchange, including through a service bureau
or other third-party technology provider.'' The Exchange notes that the
proposed definition of Sponsored Access is identical to that adopted
\10\ by the Nasdaq Stock Market, LLC (``Nasdaq''), General 2 in Section
22, Sponsored Participants, of their General Equity and Options
Rules.\11\ The Exchange believes defining Sponsored Access will provide
Sponsoring Members with greater clarity in understanding which types of
market access relationships are subject to Exchange Rule 11.3(a)-
(b),\12\ and what obligations Sponsoring Members and Sponsored
Participants must satisfy when establishing a Sponsored Access
relationship.
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    \7\ The term ``Sponsored Participant'' shall mean a person which
has entered into a sponsorship arrangement with a Sponsoring Member
pursuant to Rule 11.3. See Exchange Rule 1.5(z), definition of
``Sponsored Participant''.
    \8\ The term ``Member'' shall mean 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 which is a registered broker
or dealer pursuant to Section 15 of the Act, and which has been
approved by the Exchange. See Exchange Rule 1.5(n), definition of
``Member''.
    \9\ The term ``Sponsoring Member'' shall mean a broker-dealer
that has been issued a membership by the Exchange who has been
designated by a Sponsored Participant to execute, clear and settle
transactions from the System. The Sponsoring Member shall be either
(i) a clearing firm with membership in a clearing agency registered
with the Commission that maintains facilities through which
transactions may be cleared or (ii) a correspondent firm with a
clearing arrangement with any such clearing firm. See Exchange Rule
1.5(aa), definition of ``Sponsoring Member''.
    \10\ See Securities and Exchange Act Release No. 34-76449)
(November 27, 2015) 80 FR 73011 (November 23, 2015) (SR-NASDAQ-2015-
140) (Notice of Filing and Immediate Effectiveness of the Proposed
Rule Change Relating to Sponsored Access) (`Sponsored Access shall
mean an arrangement whereby a member permits its customers to enter
orders into the Exchange's System that bypass the member's trading
system and are routed directly to the Exchange, including routing
through a service bureau or other third party technology
provider.'')
    \11\ See General Equity and Options Rule, General 2: General
Provisions, Section 22(a), available at: https://listingcenter.nasdaq.com/rulebook/Nasdaq/rules.
    \12\ Consistent with the proposed definition, such relationships
generally include where a broker-dealer allows its customer--such as
a hedge fund, mutual fund, bank or insurance company, an Exchange
registered market maker, an individual, or another broker-dealer--to
use the broker-dealer's market participant identifier (``MPID'') or
other mechanism or mnemonic to enter orders into the Exchange's
System that bypass the Sponsoring Member's order handling system and
are electronically routed directly to the Exchange by the Sponsored
Participant, including through a service bureau or other third-party
technology provider. For the avoidance of doubt, in a scenario where
a Sponsored Participant is also an Exchange Member (e.g., where a
Sponsored Member provides market access to an Exchange Member Market
Maker), (i) the Sponsored Participant will be subject to all
Exchange rules and regulations applicable to Members acting in their
own capacity, whether the Sponsored Participant accesses the
Exchange via their own Membership or via a Sponsored Access
arrangement; and (ii) the Sponsoring Member will be responsible for
the Sponsored Participant activity just as it would for any other
non-Member Sponsored Participant under Rule 11.3(b), including
compliance with the MAR requirements and for compliance with the
applicable Member-related activity electronically routed to the
Exchange via the Sponsored Access arrangement (e.g., the Sponsoring
Member would be required to hold appointments and would be subject
to applicable requirements as an Exchange Market Maker in the
products for which the Sponsored Participant Market Maker is
registered and routes orders/quotes via the Sponsored Access
arrangement).
---------------------------------------------------------------------------

Sponsored Access--Equities Market Only
    Additionally, the Exchange seeks to amend Rule 11.3(a) to provide
that the application of the Exchange's Sponsored Participant rule
applies only to Sponsored Members of the Exchange's equities market and
does not apply to Options Members \13\ of the Exchange's options
market. The Exchange does not currently have any Options Members
registered to act as Sponsoring Members for any Sponsored Participants
who would electronically trade options and, to date, has not received
such a request for an options-based Sponsoring Member-Sponsored
Participant relationship. Accordingly, the Exchange believes it
appropriate to provide that the Sponsored Access program will apply
only to Sponsoring Members providing Sponsored Participants direct
electronic access to the Exchange's equities market (not the Exchange's
options market) and does not believe that making such change will
result in unfair discrimination between equity Members and Options
Members.
---------------------------------------------------------------------------

    \13\ The term ``Options Members'' means a firm, or organization
that is registered with the Exchange pursuant to Chapter XVII of
these Rules for purposes of participating in options trading on EDGX
Options as an ``Options Order Entry Firm'' or ``Options Market-
Maker''. See Rule 16.1, definition of ``Options Member''.
---------------------------------------------------------------------------

Market Access Rule
    The Exchange seeks to codify that the agreement currently required
under Exchange Rule 11.3(b)(2), by and between the Sponsoring Member
and Sponsored Participant, must include a provision that any Sponsored
Access relationship must follow the requirements of the MAR. While
Sponsoring Members have existing obligations under the MAR because they
are providing market access to their Sponsored Participants, the
Exchange believes the proposed amendment will help to reinforce such
obligations. Sponsored Participants will now be required to
contractually agree with their Sponsoring Members to follow the
requirements of the MAR.
    The Exchange believes that the proposed addition of 11.3(b)(2)(J)
will reinforce to Sponsoring Members that Sponsored Access
relationships must comply with the SEC's MAR, as well as Exchange rules
regarding the provision of market access. As noted above, such
relationships generally include where a broker-dealer allows its
customer to use the broker-dealer's market participant identifier
(``MPID'') or other mechanism or mnemonic to enter orders into the
Exchange's System that bypass the Sponsoring Member's order handling
system and are electronically routed directly to the Exchange by the
Sponsored Participant, including through a service bureau or other
third-party technology provider.
    The Exchange notes further that the proposed addition of
11.3(b)(2)(J) is non-substantive in nature for Sponsoring Members
because as broker-dealers providing market access, Sponsoring Members
are already required to comply with the MAR, as well as with existing
Exchange Rules regarding market access. Indeed, per the Exchange's
current Sponsored Participant rules the Sponsoring

Member is already responsible for all its Sponsored Participant's
activity on the Exchange \14\ and is required to comply with the
Exchange's Certificate of Incorporation, By-Laws, Rules, and
procedures.\15\ This includes compliance with Rule 2.2, which requires,
among other things, compliance with the Act and the regulations
thereunder, including the MAR.
---------------------------------------------------------------------------

    \14\ See Rule 11.3(b)(2)(B)(1)-(2).
    \15\ See Rule 11.3(b)(2)(C).
---------------------------------------------------------------------------

    The proposed addition of Rule 11.3(b)(2)(J) is potentially
substantive in nature to Sponsored Participants in that the proposed
amendment adds a requirement to the agreement by and between the
Sponsoring Member and Sponsored Participant, requiring the Sponsored
Participant to contractually agree to follow the requirements of the
MAR. Importantly, as part of their obligation to comply with Exchange
Rules and procedures, existing Sponsoring Members will be expected to
amend any existing contractual arrangements with their Sponsored
Participants to include the new contractual provision proposed by the
Exchange.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with
the Act and the rules and regulations thereunder applicable to the
Exchange and, in particular, the requirements of Section 6(b) of the
Act.\16\ Specifically, the Exchange believes the proposed rule change
is consistent with the Section 6(b)(5) \17\ requirements that the rules
of an exchange be designed to prevent fraudulent and manipulative acts
and practices, to promote just and equitable principles of trade, to
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.
Additionally, the Exchange believes the proposed rule change is
consistent with the Section 6(b)(5) \18\ requirement that the rules of
an exchange not be designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
---------------------------------------------------------------------------

    \16\ 15 U.S.C. 78f(b).
    \17\ 15 U.S.C. 78f(b)(5).
    \18\ Id.
---------------------------------------------------------------------------

Defining Sponsored Access
    As noted above, the Exchange believes that defining Sponsored
Access will provide Sponsoring Members with greater clarity as to which
types of market access relationships \19\ are subject to Exchange Rule
11.3(a)-(b)(1)-(3), and what obligations Sponsoring Members and
Sponsored Participants must satisfy when establishing a Sponsored
Access relationship. As such, the proposed rule change is designed to
prevent fraudulent and manipulative acts and practices and serves to
promote just and equitable principles of trade.
---------------------------------------------------------------------------

    \19\ Supra note 12.
---------------------------------------------------------------------------

    The proposed change will also help to reduce confusion by codifying
a definition for such activity on the Exchange that is consistent with
other industry practices currently in place elsewhere. The Exchange
further notes that the proposed Sponsored Access definition is
reasonable and does not affect investor protection because the proposed
change does not present any novel or unique issues, as the proposed
Sponsored Access definition has previously been adopted by Nasdaq.\20\
---------------------------------------------------------------------------

    \20\ Supra note 10.
---------------------------------------------------------------------------

Sponsored Access--Equities Market Only
    Furthermore, the Exchange believes that limiting Exchange Rule
11.3(a)-(b)(1)-(3) to Sponsoring Members providing direct electronic
access to Sponsored Participants of the Exchange's equities market will
contribute to the protection of investors and the public interest by
simplifying the Exchange's rules and making them easier for Members and
Options Members to understand, thus bolstering their collective
understanding of the Exchange's rules. Moreover, as noted above, the
Exchange currently has no Options Members registered as Sponsoring
Members and has yet to receive a request from Options Members to
establish a Sponsored Access relationship. Accordingly, the Exchange
does not believe that this proposed rule change will significantly
alter Options Members' relationship with the Exchange or impose upon
them any new obligations, and no longer wishes to have its Sponsored
Access program apply to its options market.
Market Access Rule
    As noted above, the proposed addition of 11.3(b)(2)(J) will
reinforce to Sponsoring Members that Sponsored Access relationships
must comply with the SEC's MAR, as well as Exchange Rules regarding the
provision of market access. Also, by adding proposed paragraph
11.3(b)(2)(J), Sponsored Participants are now required to contractually
agree that their Sponsored Access to the Exchange must follow the
requirements of the MAR.
    In this regard, the proposed amendment will help to ensure that by
and between the Sponsoring Member and Sponsored Participant that all
orders entered onto the Exchange pursuant to a Sponsored Access
relationship will follow the requirements of the MAR. As discussed, the
Exchange believes the proposed addition of 11.3(b)(2)(J) is non-
substantive in nature for Sponsoring Members because as broker-dealers
providing market access, Sponsoring Members are already required to
comply with the MAR, as well as with existing Exchange Rules regarding
market access. The proposed addition of Rule 11.3(b)(2)(J) is
potentially substantive in nature to Sponsored Participants in that the
proposed amendment adds a new requirement to the relationship by and
between the Sponsoring Member and Sponsored Participant, requiring the
Sponsored Participant to contractually agree to follow the requirements
of the MAR.
    Accordingly, the proposed rule change will help to promote just and
equitable principles of trade, remove impediments to and perfect the
mechanism of a free and open market and national market system, and, in
general to protect investors and the public interest.

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

    For the reasons noted below, 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.
Defining Sponsored Access
    The proposed Sponsored Access definition does not impose any burden
on intramarket competition that is not necessary or appropriate in
furtherance of the purposes of the Act. The proposed definition merely
seeks to make clear to Sponsoring Members that Sponsored Access is a
relationship subject to Exchange Rule 11.3(a)-(b)(1)-(3). Moreover,
Sponsored Access is a voluntary arrangement that a Sponsoring Member
voluntarily elects to enter with its Sponsoring Participant. A Member
is not required to become a Sponsoring Member, and in fact, may decline
to enter such a relationship with its customers.
Sponsored Access--Equities Market Only
    Moreover, providing that Exchange Rule 11.3(a)-(b)(1)-(3) will only
apply

to Sponsoring Members providing direct electronic access to Sponsored
Participants to the Exchange's equities market does not unduly burden
Options Members because as noted above, the Exchange is historically
yet to receive any Sponsored Access registrations from Options Members,
and there are currently no Options Members registered as Sponsoring
Members.
Market Access Rule
    Additionally, the Exchange does not believe that the proposed rule
change will impose any burden on intermarket competition that is not
necessary or appropriate in furtherance of the purposes of the Act.
Notably, other exchanges have in place similar rules and documentation
requirements applicable to sponsored participants and their sponsoring
members.\21\ Moreover, the proposed Sponsored Access definition is
identical to that adopted by Nasdaq \22\ and currently codified in
their rulebook.\23\
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    \21\ Supra note 11.
    \22\ Supra note 10.
    \23\ Supra note 11.
---------------------------------------------------------------------------

    The proposed rule change to explicitly cite the MAR in Rule
11.3(b)(2)(J) does not impose any burden on intramarket competition
that is not necessary or appropriate in furtherance of the purposes of
the Act. As noted above, this change is non-substantive as Sponsoring
Members are currently responsible for complying with the MAR with
respect to their provision of Sponsored Access to Sponsored
Participants. While the proposed addition of Rule 11.3(b)(2)(J) is
potentially substantive in nature to Sponsored Participants because it
requires a Sponsored Participant to contractually agree with its
Sponsoring Member to follow the requirements of the MAR, the Exchange
notes the proposed contractual requirement also exists in the Nasdaq
rulebook \24\ and as such, should not raise any new or novel issues for
consideration by Sponsored Participants.
---------------------------------------------------------------------------

    \24\ Id.
---------------------------------------------------------------------------

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

    The Exchange neither solicited nor received comments on the
proposed rule change.

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, the proposed rule
change has become effective pursuant to Section 19(b)(3)(A) of the Act
\25\ and Rule 19b-4(f)(6) \26\ thereunder.
---------------------------------------------------------------------------

    \25\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \26\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file 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.
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) \27\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\28\ the Commission
may designate a shorter time of such action is consistent with the
protection of investor and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposed
rule change may become operative upon filing. The Exchange states that
the proposed rule change could immediately benefit market participants
by clarifying for Sponsoring Members which relationships are subject to
the Exchange's Sponsored Access rules and promoting just and equitable
principles of trade. The Exchange also states that the proposed rule
change could immediately bolster Sponsoring Members and Options Members
collective understanding of the Exchange's Sponsored Participant rules,
thereby contributing to the protection of investors and public
interest. The Exchange also states the proposed addition of
11.3(b)(2)(J) will reinforce to Sponsoring Members their obligation to
comply with MAR. Because the proposed rule change does not raise any
novel regulatory issues, the Commission believes that waiving the 30-
day operative delay is consistent with the protection of investors and
the public interest. Therefore, the Commission hereby waives the
operative delay and designates the proposal operative upon filing.\29\
---------------------------------------------------------------------------

    \27\ 17 CFR 240.19b-4(f)(6).
    \28\ 17 CFR 240.19b-4(f)(6)(iii).
    \29\ 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).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission will institute proceedings to
determine whether the proposed rule change 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-CboeEDGX-2023-014 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-CboeEDGX-2023-014. 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 such filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. 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-CboeEDGX-2023-014 and should be submitted on or before April 10,
2023.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\30\
---------------------------------------------------------------------------

    \30\ 17 CFR 200.30-3(a)(12), (a)(59).
---------------------------------------------------------------------------

Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-05536 Filed 3-17-23; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register: November 23, 2009 (Volume 74, Number 224)]
[Notices]
[Page 61192-61193]
[DOCID:fr23no09-102]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-61009; File No. SR-ISE-2009-97]

Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change Regarding the Closing Settlement Value for the Brazilian Real

November 16, 2009.
    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 November 10, 2009, the International Securities Exchange, LLC
(the ``Exchange'' or the ``ISE'') filed with the Securities and
Exchange Commission (``Commission'') the proposed rule change as
described in Items I, II, and III below, which items have been prepared
by the Exchange. The Exchange has filed the proposal as a ``non-
controversial'' proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-4(f)(6) thereunder.\4\ The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

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

    The Exchange proposes to amend its Rule 2212 regarding the closing
settlement value for the Brazilian real. The text of the proposed rule
change is available on the Exchange's Web site http://www.ise.com, at
the principal office of the Exchange, and at the Commission's Public
Reference Room.

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

    In its filing with the Commission, the 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 self-regulatory organization has prepared summaries,
set forth in Sections A, B and C below, of the most significant aspects
of such statements.

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

1. Purpose
    ISE proposes to amend its rules regarding Foreign Currency Options
(``FX Options'') \5\ traded on the Exchange. Specifically, ISE proposes
to amend its Rule 2213 regarding the closing settlement value for
options on the Brazilian real. The Brazilian real is one of the 19
underlying currencies that have been approved for trading by the
SEC.\6\ Pursuant to the FX Options Filing, the Exchange currently lists
options on 9 currency pairs and anticipates listing additional FX
Options shortly, including options on the Brazilian real.
---------------------------------------------------------------------------

    \5\ ISE began trading FX options on April 17, 2007 pursuant to
Commission approval. See Securities Exchange Act Release No. 55575
(April 3, 2007), 72 FR 17963 (April 10, 2007) (SR-ISE-2006-59) (the
``FX Options Filing'').
    \6\ Id.
---------------------------------------------------------------------------

    Currently, ISE's rule for determining the closing settlement value
for FX Options, including the Brazilian real, states that the closing
settlement value shall be shall be determined by using the WM/Reuters
Intraday Spot rate on the last trading day during expiration week.
However, based on conversations with market participants, the Exchange
understands that the Brazilian real is a non-deliverable currency as a
result of capital controls established by Brazil's central bank. And
although Brazil has a very active domestic foreign currency futures
market, there are strict controls related to obtaining the physical
currency. Further, FX market participants worldwide prefer to use the
official exchange rate, known as the PTAX, established by the Central
Bank of Brazil (BACEN) for valuing derivative transactions involving
the Brazilian real. The PTAX, which is calculated daily, has been
published by BACEN since February 1, 1999. The PTAX has thus

become the industry standard for determining settlement value.\7\
---------------------------------------------------------------------------

    \7\ Additional information on the PTAX is available on BACEN's
Web site at http://www.bcb.gov.br/sddsi/taxacambio_i.htm.
---------------------------------------------------------------------------

    ISE therefore proposes to amend its rules to allow the closing
settlement value for the Brazilian real to be determined based on the
PTAX rate. Doing so will reflect the current industry standard with
respect to this product and will align trading in it with other
regulated and exchange-listed products in the U.S. The PTAX rate is the
same as that used by the Bolsa de Mercadorias & Futuros to cash settle
its U.S. dollar futures contract as well as that used by the Chicago
Mercantile Exchange to cash settle its Brazilian real futures contract.
    In the event the PTAX rate is not available, the Exchange shall
calculate the closing settlement value for options on the Brazilian
real using the WM/Reuters Intraday Spot price corresponding to 12:00
p.m. New York time, which is what the Exchange currently uses to
calculate the closing settlement values for all the FX options that are
currently listed on the Exchange.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations under the Act applicable to a national securities exchange
and, in particular, the requirements of Section 6(b) of the Act.\8\
Specifically, the Exchange believes the proposed rule change is
consistent with Section 6(b)(5) of the Act's \9\ requirements that the
rules of a national securities exchange be designed to promote just and
equitable principles of trade, to prevent fraudulent and manipulative
acts and, in general, to protect investors and the public interest. In
particular, the proposed rule change will allow the Exchange to use the
PTAX, an industry-recognized source, to determine the closing
settlement value for options on the Brazilian real which the Exchange
expects shortly to list for trading.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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

    The proposed rule change does not impose any burden on 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

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

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

    Because the foregoing proposed rule change does not significantly
affect the protection of investors or the public interest, does not
impose any significant burden on competition, and, by its terms, does
not 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) \10\ of the Act and Rule 19b-
4(f)(6) \11\ thereunder. The Exchange provided the Commission with
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 the proposed rule
change.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule
change, the Commission may summarily abrogate 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.

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 e-mail to<EMAIL_ADDRESS>Please include
File Number SR-ISE-2009-97 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.

All submissions should refer to File Number SR-ISE-2009-97. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/
sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for inspection and
copying in the Commission's Public Reference Room, on official business
days between the hours of 10 a.m. and 3 p.m. Copies of the filing also
will be available for inspection and copying at the principal office of
the Exchange. All comments received will be posted without change; the
Commission does not edit personal identifying information from
submissions. You should submit only information that you wish to make
available publicly. All submissions should refer to File Number SR-ISE-
2009-97 and should be submitted on or before December 14, 2009.
---------------------------------------------------------------------------

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

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-27999 Filed 11-20-09; 8:45 am]

BILLING CODE 8011-01-P


[Federal Register Volume 79, Number 82 (Tuesday, April 29, 2014)]
[Notices]
[Pages 24045-24047]
[FR Doc No: 2014-09681]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-72012; File No. SR-NASDAQ-2014-042]

Self-Regulatory Organizations; the NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change to
Modify Rule 4758 to Correct a Typographical Error

April 23, 2014.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\, and Rule 19b-4 thereunder,\2\ notice is hereby given
that on April 14, 2014, The NASDAQ Stock Market LLC (``Nasdaq'' or
``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or ``Commission'') the proposed rule change as described in
Items I and II, below, which Items have been prepared by the Exchange.
The Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

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

    NASDAQ proposes to modify Rule 4758 to correct a typographical
error made in SR-NASDAQ-2014-025, a recent proposed rule change
pertaining, among other things, to NASDAQ's LIST routing strategy.\3\
The text of the proposed rule change is available on the Exchange's Web
site at http://nasdaq.cchwallstreet.com, at the principal office of the
Exchange, and at

the Commission's Public Reference Room.
---------------------------------------------------------------------------

    \3\ Securities Exchange Act Release No. 71794 (March 25, 2014),
79 FR 18101 (March 31, 2014) (SR-NASDAQ-2014-025).
---------------------------------------------------------------------------

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
    NASDAQ offers its members optional routing functionality that
allows them to use NASDAQ's facilities to access liquidity available on
other trading venues. The functionality includes a range of defined
routing algorithms--known as strategies--that determine the
destinations and pattern of routing. All routing is designed to be
conducted in a manner consistent with the requirements of Regulation
NMS.
    In SR-NASDAQ-2014-025, NASDAQ made minor changes to the rules
governing its DOT, DOTI, and LIST strategies to improve their
functioning and the clarity of the rule that describes them in certain
situations. The new rule text governing the LIST strategy contained a
typographical error, however, that NASDAQ is now proposing to correct.
    LIST is a routing option designed to allow orders to participate in
the opening and/or closing process of the primary listing market for a
security, and to follow additional routing logic described in the rule.
In one instance, however, NASDAQ used the term ``primary market''
rather than ``primary listing market'' in reference to functionality
that would apply after the security had closed. Accordingly, NASDAQ is
proposing to correct this error.
2. Statutory Basis
    NASDAQ believes that the proposed rule change is consistent with
the provisions of Section 6 of the Act,\4\ in general, and with Section
6(b)(5) of the Act \5\ in particular, in that the proposal is designed
to prevent fraudulent and manipulative acts and practices, to promote
just and equitable principles of trade, to 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. NASDAQ believes that the
change will promote these goals by ensuring that the rule used to
describe the LIST routing strategy used accurate terminology.
---------------------------------------------------------------------------

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

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

    NASDAQ does not believe that the proposed rule change will result
in any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act, as amended. Specifically,
NASDAQ believes that the change does not impact competition in any
respect, since it is designed merely to correct a typographical error.

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 proposed rule change does not (i) significantly affect
the protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative for 30
days from the date on which it was filed, or such shorter time as the
Commission may designate if consistent with the protection of investors
and the public interest, the proposed rule change has become effective
pursuant to Section 19(b)(3)(A) of the Act \6\ and Rule 19b-
4(f)(6)(iii) thereunder.\7\
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 17 CFR 240.19b-4(f)(6)(iii). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written
notice of its intent to file the proposed rule change, along with a
brief description and the text of the proposed rule change, at least
five business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission.
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) \8\ normally
does not become operative for 30 days after the date of filing.
However, pursuant to Rule 19b-4(f)(6)(iii) \9\ 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 so that the proposal
may become operative immediately upon filing. The Commission believes
that waiving the 30-day operative delay is consistent with the
protection of investors and the public interest, as it will allow the
correction to the Exchange's rule text to take effect immediately. For
this reason, the Commission designates the proposed rule change to be
operative upon filing.\10\
---------------------------------------------------------------------------

    \8\ 17 CFR 240.19b-4(f)(6).
    \9\ 17 CFR 240.19b-4(f)(6)(iii).
    \10\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.

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-NASDAQ-2014-042 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-NASDAQ-2014-042. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the

Commission and any person, other than those that may be withheld from
the public in accordance with the provisions of 5 U.S.C. 552, will be
available for Web site viewing and printing in the Commission's Public
Reference Room, 100 F Street NE., Washington, DC 20549, on official
business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of
the filing also will be available for inspection and copying at the
principal office of the Exchange. All comments received will be posted
without change; the Commission does not edit personal identifying
information from submissions. You should submit only information that
you wish to make available publicly. All submissions should refer to
File Number SR-NASDAQ-2014-042, and should be submitted on or before
May 20, 2014

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------

    \11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-09681 Filed 4-28-14; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 86, Number 157 (Wednesday, August 18, 2021)]
[Notices]
[Page 46238]
[FR Doc No: 2021-17699]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. EL21-95-000]

Kendall County Solar Project, LLC v. PJM Interconnection, L.L.C.;
Notice of Complaint

    Take notice that on August 9, 2021, pursuant to sections 206, 306,
and 309 of the Federal Power Act (FPA), 16 U.S.C. 824e, 825e, and 825h
and Rule 206 of the Federal Energy Regulatory Commission's (Commission)
Rules of Practice and Procedure, 18 CFR 385.206, Kendall County Solar
Project, LLC (Kendall County Solar or Complainant) filed a formal
complaint against PJM Interconnection, L.L.C. (PJM or Respondent),
alleging that PJM has failed to follow its Open Access Transmission
Tariff and has processed Kendall County Solar's Interconnection Request
in an unjust, unreasonable, unduly discriminatory, and preferential
manner, all as more fully explained in its complaint.
    The Complainant certify that copies of the complaint were served on
the contacts listed for Respondent in the Commission's list of
Corporate Officials.
    Any person desiring to intervene or to protest this filing must
file in accordance with Rules 211 and 214 of the Commission's Rules of
Practice and Procedure (18 CFR 385.211, 385.214). Protests will be
considered by the Commission in determining the appropriate action to
be taken, but will not serve to make protestants parties to the
proceeding. Any person wishing to become a party must file a notice of
intervention or motion to intervene, as appropriate. The Respondent's
answer and all interventions, or protests must be filed on or before
the comment date. The Respondent's answer, motions to intervene, and
protests must be served on the Complainant.
    The Commission strongly encourages electronic filings of comments,
protests and interventions in lieu of paper using the ``eFiling'' link
at http://www.ferc.gov. Persons unable to file electronically may mail
similar pleadings to the Federal Energy Regulatory Commission, 888
First Street, NE, Washington, DC 20426. Hand delivered submissions in
docketed proceedings should be delivered to Health and Human Services,
12225 Wilkins Avenue, Rockville, Maryland 20852.
    In addition to publishing the full text of this document in the
Federal Register, the Commission provides all interested persons an
opportunity to view and/or print the contents of this document via the
internet through the Commission's Home Page (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. At this time,
the Commission has suspended access to the Commission's Public
Reference Room, due to the proclamation declaring a National Emergency
concerning the Novel Coronavirus Disease (COVID-19), issued by the
President on March 13, 2020. For assistance, contact the Federal Energy
Regulatory Commission at<EMAIL_ADDRESS>or call toll-free,
(886) 208-3676 or TYY,<PHONE_NUMBER>.
    Comment Date: 5:00 p.m. Eastern Time on August 30, 2021.

    Dated: August 12, 2021.
Kimberly D. Bose,
Secretary.
[FR Doc. 2021-17699 Filed 8-17-21; 8:45 am]
BILLING CODE 6717-01-P


SC10077 Memorandum To: Lynne Tudor and Tom Wall, U. S. EPA From: Elizabeth Strange and Dave Cacela, Stratus Consulting Inc.

Date: 6/ 28/ 02 Subject: Responses to Riverkeeper Questions About the § 316( b) Phase II Case Study I& E Analyses 1. I am looking at the impingement data used in the example of 316b and I have a problem. I have been trying to calculate the figures given in Table B4 2. I have gone back to the source Tables B3 2 and B3 3 and the Salem input Excel sheet. I can get the annual impingement data to tally in Table B3 2 by use of the adding the age 1, and Juvenile 1 and 2 fish from the Excel sheet. I then try to move on to get the age 1 equivalents in Table B3 3. For each year I calculate the Year 1 equivalent of the life stage of interest.

For example take 1978 for weakfish Action Juv 1 Juv 2 Age 1 Total From Tab. 6,378,530 11,260 1,466 6,391,256 I cannot get from these values to the total age 1 equivalents of 237,865. Accepting that as correct I cannot get from the mean age 1 equivalent of 65,182 to the value given in the Table B4 2 of 55,856. I have tried following your model in Section A5 3 but I cannot get it to work. Could I have a spreadsheet showing the calculations of a single species such as the weakfish from raw data to the year 1 equivalents?

A complete elaboration of the calculation of age 1 equivalents is provided for the reviewer's convenience in Tables 1 4 below. Table 1 reports the life history parameters that EPA used for modeling weakfish at Salem. These values are included in the workbook " salem. input. data. xls" ( DCN 4 2051). Table 1 also shows the associated survival rates that EPA derived from the basic life history parameters using methods described in Chapter A5 of Part A of the Case Study Document ( DCN 4 0003). Table 2 provides further elaboration of the values presented in Table 1, and gives an explicit elaboration of how stage specific survival rates are combined to give effective stagespecific survival rates from the age of entrainment until age 1. Table 3 reports the stage specific 1978 impingement losses of weakfish, which are included in the workbook " salem. input. data. xls" ( DCN 4 2051). Table 4 associates the values in Table 2 and Table 3 to provide a stage specific accounting of age 1 equivalent losses and indicates where the values so derived were reported in the Salem case study ( Part B of the Case Study Document). Stratus Consulting Memorandum ( 6/ 28/ 02)

Page 2 SC10077 Table B3 3 of the Case Study Document ( DCN 4 0003) reports the mean annual number of weakfish age 1 equivalents as 65,182, which summarizes weakfish losses during 1978 1998. Table B4 2 reports the mean annual number of weakfish age 1 equivalents as 55,856, which summarizes losses that occurred during 1995, 1997, and a 1998 ( as presented in Table B3 18). The latter time period was selected to represent the current baseline losses at Salem for reasons described in Section B3 7 of Chapter B3.

Table 1. Stage specific weakfish life history parameters ( M, F, fraction vulnerable to fishery) used to derive stage specific weakfish survival rates ( Sj) at Salem.

Life history parameter Life stage ( j) M F Fraction of life stage ( j) vulnerable to fishery F adj 1 Z = M+ F adj S j = e Z S* j 2 Egg 1.043 0.00 0.00 0.00000 1.0430 0.3524 0.5211 Yolk sac larvae 1.341 0.00 0.00 0.00000 1.3410 0.2616 0.4147 Post yolk sac larvae 6.3325 0.00 0.00 0.00000 6.3325 0.0018 0.0035 Juvenile stage 1 2.439875 0.00 0.00 0.00000 2.4399 0.0872 0.1604 Juvenile stage 2 1.483788 0.00 0.00 0.00000 1.4838 0.2268 0.3697 Age 1 0.348575 0.25 0.10 0.02237 0.3709 0.6901 0.8166 1. F adj represents fishing mortality rate ( F) adjusted for fraction of age class vulnerable to fishery. 2. S* j represents the stage specific survival rate ( S j) adjusted to account for the fact that the precise within stage age of entrained fish is unknown.

Table 2. Elaboration of Equation 4 of Section A5 3.1 of the Case Study Document: Example derivation of Sj, 1, the stage specific cumulative survival rate ( as a fraction) from stage at entrainment ( j) to age 1 for weakfish entrained at Salem; the definition of Sj, 1 includes accommodation for unknown within stage age at entrainment.

Life stage ( j) Egg Yolk sac larvae Post yolksac larvae Juvenile 1 Juvenile 2 Age 1 S j, 1 Egg 0.52114 0.26158 0.00178 0.08717 0.22678 0.69008 0.0000048 Yolk sac larvae 0.41469 0.00178 0.08717 0.22678 0.69008 0.0000146 Post yolk sac larvae 0.00355 0.08717 0.22678 0.69008 0.0000702 Juvenile stage1 0.16036 0.22678 0.69008 0.0363669 Juvenile stage2 0.36971 0.69008 0.3697119 Age 1 0.81663 1.1833738 1. S* j represents the stage specific survival rate ( S j) adjusted to account for the fact that the precise within stage age of entrained fish is unknown. 2. 1.18 = ( 0.81663/ 0.6901) = effective inflation factor applicable to fish >= age 1 to offset effects of S* j [ see Section A5 3.1 of Chapter A5 of the Case Study Document ( DCN 4 0003) for further explanation]. Stratus Consulting Memorandum ( 6/ 28/ 02)

Page 3 SC10077 Table 3. Weakfish impingement losses at Salem NGS in 1978 [ detail from salem. input. data. xls ( DCN 4 2051)].

Life stage ( j) Impingement losses Egg 0 Yolk sac larvae 0 Post yolk sac larvae 0 Juvenile stage 1 6,378,530 Juvenile stage 2 11,260 Age 1 1,466 Total 6,391,256 Table 4. Elaboration of calculations to express 1978 weakfish losses to impingement at Salem as age 1 equivalents.

Life stage ( j) Number of fish impinged S j, 1 Age 1 equivalent losses Egg 0 0.00000479 0.0 Yolk sac larvae 0 0.0000146 0.0 Post yolk sac larvae 0 0.0000702 0.0 Juvenile stage 1 6,378,530 0.0364 231,967.6 Juvenile stage 2 11,260 0.370 4,163.0 Age 1 1,466 1.183 1,734.8 Total 6,391,256 237,865.3 matches Table B3 2 of Case Study Document ( DCN 4 0003) matches Table B3 3 of Case Study Document ( DCN 4 0003)

2. At Salem, how is the silverside age 1 equivalent calculated for entrainment? I do not seem to be able to get this figure. I get 4,886,300, which is some way off the EPA figure in Table B4 3 of 107,867.

Age 1 equivalent losses of silversides were calculated using the same general procedure that is elaborated for age 1 equivalent losses of weakfish in the response to Question # 1, and described in Chapter A5 of Part A of the Case Study Document ( DCN 4 0003).

EPA does not understand the value 4,886,300 that the questioner cites for silverside losses. Stratus Consulting Memorandum ( 6/ 28/ 02)

Page 4 SC10077 3. In Table B4 3, how is the total catch number of the same table obtained? Is it possible to calculate this figure from the information given in the documents? For example, for spot   where they are completely in the fishery at age 1, why is the number lost to the fishery so much less than the age 1 equivalent value?

The metric " Total Catch (#)" presented in Table B4 3 of Chapter B4 of Part B of the Case Study Document ( DCN 4 0003) is derived from " Total Catch ( lb)" by the relationship:

N s, k = Y s, k / E s, Equation 1 where:

N s, k = Total Catch (#) = Foregone yield expressed as numbers of landed fish for species s in year k Y s, k = Total Catch ( lb) = Foregone yield expressed as pounds of landed fish for species s in year k E s = Average weight of landed fish ( lbs/ individual) for species s.

The values of E s are not reported explicitly in the case study reports. However, they are provided implicitly by the simple relationship described in Equation 1, above. Values of E s were defined as the expected weight of a landed fish of species s, i. e., as the average weight at age of all age classes statistically weighted by the relative contribution of each age class to the overall age composition of harvested fish. In the case of spot, E s equals 0.41 lbs/ individual. The values N s, k were not used in the benefits analysis except for valuation of foregone recreational catch.

An age 1 equivalent fish represents a living age 1 fish. It is calculated under the assumption of zero ( or negligible) harvest prior to age 1. The number lost to the fishery is considerably less than the number of age 1 equivalents because most harvested fish are older than age 1 ( and therefore fewer because of ongoing natural mortality), and because the fishery typically does not capture every fish that survives to harvestable age.

4. Is there any information on the age structure of impinged fish at any of the case study stations? I know that the fish are measured at Salem but the data does not seem to be in the documents.

The available information about the age composition of impinged fish varies between case studies because of differences in study design and reporting habits among the facilities. In most cases, detailed information about age composition was not available. EPA assumed that impinged fish were age 1 fish unless ages of fish less than 1 were reported, in which case age classes younger than age 1 were enumerated as reported in facility documents. Stratus Consulting Memorandum ( 6/ 28/ 02)

Page 5 SC10077 All of the available information about age composition is provided in the input data files that are available in the docket ( see DCN 4 2051).