[Federal Register Volume 82, Number 238 (Wednesday, December 13, 2017)]
[Notices]
[Pages 58618-58619]
[FR Doc No: 2017-26828]

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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

[Docket No. FDA-2017-D-6352]

Gluten in Drug Products and Associated Labeling Recommendations;
Draft Guidance for Industry; Availability

AGENCY: Food and Drug Administration, HHS.

ACTION: Notice of availability.

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SUMMARY: The Food and Drug Administration (FDA or Agency) is announcing
the availability of a draft guidance for industry entitled ``Gluten in
Drug Products and Associated Labeling Recommendations.'' This draft
guidance is intended to convey to drug manufacturers FDA's
recommendations on how certain oral drug products should be labeled
regarding gluten, a matter of interest to individuals with celiac
disease. Some individuals with celiac disease have faced difficulty
when trying to determine whether specific drug products contain gluten.
This draft guidance encourages drug manufacturers to have accurate
information about their products' gluten content available so they can
respond to questions from consumers and health care professionals.

DATES: Submit either electronic or written comments on the draft
guidance by February 12, 2018 to ensure that the Agency considers your
comment on this draft guidance before it begins work on the final
version of the guidance.

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

Electronic Submissions

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

Written/Paper Submissions

    Submit written/paper submissions as follows:
     Mail/Hand delivery/Courier (for written/paper
submissions): Dockets Management Staff (HFA-305), Food and Drug
Administration, 5630 Fishers Lane, Rm. 1061, Rockville, MD 20852.
     For written/paper comments submitted to the Dockets
Management Staff, FDA will post your comment, as well as any
attachments, except for information submitted, marked and identified,
as confidential, if submitted as detailed in ``Instructions.''
    Instructions: All submissions received must include the Docket No.
FDA-2017-D-6352 for ``Gluten in Drug Products and Associated Labeling
Recommendations.'' Received comments will be placed in the docket and,
except for those submitted as ``Confidential Submissions,'' publicly
viewable at https://www.regulations.gov or at the Dockets Management
Staff between 9 a.m. and 4 p.m., Monday through Friday.
     Confidential Submissions--To submit a comment with
confidential information that you do not wish to be made publicly
available, submit your comments only as a written/paper submission. You
should submit two copies total. One copy will include the information
you claim to be confidential with a heading or cover note that states
``THIS DOCUMENT CONTAINS CONFIDENTIAL INFORMATION.'' The Agency will
review this copy, including the claimed confidential information, in
its consideration of comments. The second copy, which will have the
claimed confidential information redacted/blacked out, will be
available for public viewing and posted on https://www.regulations.gov.
Submit both copies to the Dockets Management Staff. If you do not wish
your name and contact information to be made publicly available, you
can provide this information on the cover sheet and not in the body of
your comments and you must identify this information as
``confidential.'' Any information marked as ``confidential'' will not
be disclosed except in accordance with 21 CFR 10.20 and other
applicable disclosure law. For more information about FDA's posting of
comments to public dockets, see 80 FR 56469, September 18, 2015, or
access the information at: https://www.gpo.gov/fdsys/pkg/FR-2015-09-18/pdf/2015-23389.pdf.
    Docket: For access to the docket to read background documents or
the electronic and written/paper comments received, go to https://www.regulations.gov and insert the docket number, found in brackets in
the heading of this document, into the ``Search'' box and follow the
prompts and/or go to the Dockets Management Staff, 5630 Fishers Lane,
Rm. 1061, Rockville, MD 20852.
    You may submit comments on any guidance at any time (see 21 CFR
10.115(g)(5)).
    Submit written requests for single copies of the draft guidance to
the Division of Drug Information, Center for Drug Evaluation and
Research, Food and Drug Administration, 10001 New Hampshire Ave.,
Hillandale Building, 4th Floor, Silver Spring, MD 20993-0002; or to the
Office of Communication, Outreach and Development, Center for Biologics
Evaluation and Research, Food and Drug Administration, 10903 New
Hampshire Ave., Bldg. 71, Rm. 3128, Silver Spring, MD 20993-0002. Send
one self-addressed adhesive label to assist that office in processing
your requests. See the SUPPLEMENTARY INFORMATION section for electronic
access to the draft guidance document.

FOR FURTHER INFORMATION CONTACT: Marci Kiester, Center for Drug
Evaluation and Research, Food and Drug Administration, 10903 New
Hampshire Ave., Bldg. 51, Rm. 2258, Silver Spring, MD 20993-0002, 301-
796-0600; or Stephen Ripley, Center for Biologics Evaluation and
Research, Food and Drug Administration, 10903 New Hampshire Ave., Bldg.
71, Rm. 7301, Silver Spring, MD 20993-0002,<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

I. Background

    FDA is announcing the availability of a draft guidance for industry
entitled ``Gluten in Drug Products and Associated Labeling

Recommendations.'' This draft guidance is intended to convey to drug
manufacturers FDA's recommendations on how certain drug products should
be labeled regarding gluten, a matter of interest to individuals with
celiac disease. Some individuals with celiac disease have faced
difficulty when trying to determine whether specific drug products
contain gluten. Confronted by uncertainty, some patients may forego
important medication rather than risk an adverse reaction to gluten.
Thus, even if gluten is not present at levels that would harm a typical
individual with celiac disease, that individual may be harmed through
uncertainty and lack of information.
    Celiac disease is an immune-based reaction to dietary gluten that
primarily affects the small intestine in susceptible individuals;
unmanaged celiac disease can lead to serious health complications.
Approximately 1 percent of the U.S. population has celiac disease
(Binder, 2015, ``Disorders of Absorption,'' in Harrison's Principles of
Internal Medicine, 19th ed.). It is characterized by ongoing
inflammation of part of the lining of the small intestine that
generally heals if foods containing gluten are excluded from the diet
and returns if they are reintroduced. This guidance encourages drug
manufacturers to have accurate information about their products' gluten
content available so they can respond to questions from consumers and
health care professionals. Manufacturers should pay attention to
possible sources of gluten in their products, consider specifications
when appropriate, and consider the impact of changes in ingredient
sources or formulations on gluten content.
    This draft guidance is being issued consistent with FDA's good
guidance practices regulation (21 CFR 10.115). The draft guidance, when
finalized, will represent the current thinking of FDA on Gluten in Drug
Products and Associated Labeling Recommendations. It does not establish
any rights for any person and is not binding on FDA or the public. You
can use an alternative approach if it satisfies the requirements of the
applicable statutes and regulations. This guidance is not subject to
Executive Order 12866.

II. The Paperwork Reduction Act of 1995

    This draft guidance refers to previously approved collections of
information that are subject to review by the Office of Management and
Budget (OMB) under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-
3520). The collections of information discussed in the draft guidance
have been approved by OMB under the following control numbers:
    OMB control number 0910-0001: Submitting to FDA labeling in NDAs
and ANDAs, including amendments to pending NDAs and ANDAs, supplements
to approved NDAs and ANDAs, and annual reports; OMB control number
0910-0572: Designing, testing, and revising prescription drug product
labeling; OMB control number 0910-0340: Designing, testing, and
revising Drug Facts labeling for OTC drugs, including submitting
labeling to FDA for OTC monograph drugs; OMB control number 0910-0139:
Recordkeeping requirements in CGMPs; OMB control number 0910-0393:
Preparing and revising Medication Guides; and OMB control number 0910-
0338: Submitting to FDA labeling in BLAs, including amendments to
pending BLAs, supplements to approved BLAs, and annual reports.
    The recommended labeling statement in this draft guidance,
``Contains no ingredient made from a gluten-containing grain (wheat,
barley, or rye)'' is information provided by FDA to applicants and
manufacturers for disclosure to the public and therefore does not
constitute a collection of information under 5 CFR 1320.3(c)(2).

III. Electronic Access

    Persons with access to the internet may obtain the draft guidance
at either https://www.fda.gov/Drugs/GuidanceComplianceRegulatoryInformation/Guidances/default.htm, https://www.fda.gov/BiologicsBloodVaccines/GuidanceComplianceRegulatoryInformation/default.htm, or https://www.regulations.gov.

    Dated: December 7, 2017.
Leslie Kux,
Associate Commissioner for Policy.
[FR Doc. 2017-26828 Filed 12-12-17; 8:45 am]
BILLING CODE 4164-01-P


[Federal Register Volume 84, Number 75 (Thursday, April 18, 2019)]
[Notices]
[Pages 16331-16332]
[FR Doc No: 2019-07794]

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DEPARTMENT OF TRANSPORTATION

Federal Motor Carrier Safety Administration

[Docket No. FMCSA-2010-0203; FMCSA-2014-0381]

Qualification of Drivers; Exemption Applications; Epilepsy and
Seizure Disorders

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

ACTION: Notice of renewal of exemptions; request for comments.

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SUMMARY: FMCSA announces its decision to renew exemptions for two
individuals from the requirement in the Federal Motor Carrier Safety
Regulations (FMCSRs) that interstate commercial motor vehicle (CMV)
drivers have ``no established medical history or clinical diagnosis of
epilepsy or any other condition which is likely to cause loss of
consciousness or any loss of ability to control a CMV.'' The exemptions
enable these individuals who have had one or more seizures and are
taking anti-seizure medication to continue to operate CMVs in
interstate commerce.

DATES: The exemptions were applicable on March 10, 2019. The exemptions
expire on March 10, 2021. Comments must be received on or before May
20, 2019.

ADDRESSES: You may submit comments identified by the Federal Docket
Management System (FDMS) Docket No. FMCSA-2010-0203; FMCSA-2014-0381
using any of the following methods:
     Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow the online instructions for submitting
comments.
     Mail: Docket Management Facility; U.S. Department of
Transportation, 1200 New Jersey Avenue SE, West Building Ground Floor,
Room W12-140, Washington, DC 20590-0001.
     Hand Delivery: West Building Ground Floor, Room W12-140,
1200 New Jersey Avenue SE, Washington, DC, between 9 a.m. and 5 p.m.,
ET, Monday through Friday, except Federal Holidays.
     Fax: 1-202-493-2251.
    To avoid duplication, please use only one of these four methods.
See the ``Public Participation'' portion of the SUPPLEMENTARY
INFORMATION section for instructions on submitting comments.

FOR FURTHER INFORMATION CONTACT: Ms. Christine A. Hydock, Chief,
Medical Programs Division,<PHONE_NUMBER>, [email protected], FMCSA,
Department of Transportation, 1200 New Jersey Avenue SE, Room W64-224,
Washington, DC 20590-0001. Office hours are from 8:30 a.m. to 5 p.m.,
ET, Monday through Friday, except Federal holidays. If you have
questions regarding viewing or submitting material to the docket,
contact Docket Services, telephone<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

I. Public Participation

A. Submitting Comments

    If you submit a comment, please include the docket number for this
notice (Docket No. FMCSA-2010-0203; FMCSA-2014-0381), indicate the
specific section of this document to which each comment applies, and
provide a reason for each suggestion or recommendation. You may submit
your comments and material online or by fax, mail, or hand delivery,
but please use only one of these means. FMCSA recommends that you
include your name and a mailing address, an email address, or a phone
number in the body of your document so that FMCSA can contact you if
there are questions regarding your submission.
    To submit your comment online, go to http://www.regulations.gov,
put the docket number, FMCSA-2010-0203; FMCSA-2014-0381, in the keyword
box, and click ``Search.'' When the new screen appears, click on the
``Comment Now!'' button and type your comment into the text box on the
following screen. Choose whether you are submitting your comment as an
individual or on behalf of a third party and then submit.
    If you submit your comments by mail or hand delivery, submit them
in an unbound format, no larger than 8\1/2\ by 11 inches, suitable for
copying and electronic filing. If you submit comments by mail and would
like to know that they reached the facility, please enclose a stamped,
self-addressed postcard or envelope.
    FMCSA will consider all comments and material received during the
comment period.

B. Viewing Documents and Comments

    To view comments, as well as any documents mentioned in this notice
as being available in the docket, go to http://www.regulations.gov.
Insert the docket number, FMCSA-2010-0203; FMCSA-2014-0381, in the
keyword box, and click ``Search.'' Next, click the ``Open Docket
Folder'' button and choose the document to review. If you do not have
access to the internet, you may view the docket online by visiting the
Docket Management Facility in Room W12-140 on the ground floor of the
DOT West Building, 1200 New Jersey Avenue SE, Washington, DC 20590,
between 9 a.m. and 5 p.m., ET, Monday through Friday, except Federal
holidays.

C. Privacy Act

    In accordance with 5 U.S.C. 553(c), DOT solicits comments from the
public to better inform its rulemaking process. DOT posts these
comments, without edit, including any personal information the
commenter provides, to www.regulations.gov, as described in the system
of records notice (DOT/ALL-14 FDMS), which can be reviewed at
www.dot.gov/privacy.

II. Background

    Under 49 U.S.C. 31136(e) and 31315, FMCSA may grant an exemption
for up to five years if it finds such exemption would likely achieve a
level of safety that is equivalent to, or greater than, the level that
would be achieved absent such exemption. The statute also allows the
Agency to renew exemptions at the end of the five-year period. FMCSA
grants exemptions from the FMCSRs for a two-year period to align with
the maximum duration of a driver's medical certification.
    The physical qualification standard for drivers regarding epilepsy
found in 49 CFR 391.41(b)(8) states that a person is physically
qualified to drive a CMV if that person has no established medical
history or clinical diagnosis of epilepsy or any other condition which
is likely to cause the loss of consciousness or any loss of ability to
control a CMV.
    In addition to the regulations, FMCSA has published advisory
criteria to assist Medical Examiners in determining whether drivers
with certain medical conditions are qualified to operate a CMV in
interstate commerce. [49 CFR part 391, APPENDIX A TO PART 391--MEDICAL
ADVISORY CRITERIA, section H. Epilepsy: Sec.  391.41(b)(8), paragraphs
3, 4, and 5.]
    The two individuals listed in this notice have requested renewal of
their exemptions from the epilepsy and seizure disorders prohibition in
49 CFR 391.41(b)(8), in accordance with FMCSA procedures. Accordingly,
FMCSA has evaluated these applications for renewal on their merits and
decided to extend each exemption for a renewable two-year period.

III. Request for Comments

    Interested parties or organizations possessing information that
would otherwise show that any, or all, of these drivers are not
currently achieving the statutory level of safety should immediately
notify FMCSA. The Agency will evaluate any adverse evidence submitted
and, if safety is being compromised or if continuation of the exemption
would not be consistent with the goals and objectives of 49 U.S.C.
31136(e) and 31315, FMCSA will take immediate steps to revoke the
exemption of a driver.

IV. Basis for Renewing Exemptions

    In accordance with 49 U.S.C. 31136(e) and 31315, each of the two
applicants has satisfied the renewal conditions for obtaining an
exemption from the epilepsy and seizure disorders prohibition. The two
drivers in this notice remain in good standing with the Agency, have
maintained their medical monitoring and have not exhibited any medical
issues that would compromise their ability to safely operate a CMV
during the previous two-year exemption period. In addition, for
Commercial Driver's License (CDL) holders, the Commercial Driver's
License Information System (CDLIS) and the Motor Carrier Management
Information System (MCMIS) are searched for crash and violation data.
For non-CDL holders, the Agency reviews the driving records from the
State Driver's Licensing Agency (SDLA). These factors provide an
adequate basis for predicting each driver's ability to continue to
safely operate a CMV in interstate commerce. Therefore, FMCSA concludes
that extending the exemption for each renewal applicant for a period of
two years is likely to achieve a level of safety equal to that existing
without the exemption.
    As of March 10, 2019, and in accordance with 49 U.S.C. 31136(e) and
31315, the following two individuals have satisfied the renewal
conditions for obtaining an exemption from the epilepsy and seizure
disorders prohibition in the FMCSRs for interstate CMV drivers: John C.
Griffith (ND) and Denton Hineline (WA).
    The drivers were included in docket number FMCSA-2010-0203; FMCSA-
2014-0381. Their exemptions are applicable as of March 10, 2019, and
will expire on March 10, 2021.

V. Conditions and Requirements

    The exemptions are extended subject to the following conditions:
(1) Each driver must remain seizure-free and maintain a stable
treatment during the two-year exemption period; (2) each driver must
submit annual reports from their treating physicians attesting to the
stability of treatment and that the driver has remained seizure-free;
(3) each driver must undergo an annual medical examination by a
certified Medical Examiner, as defined by 49 CFR 390.5; and (4) each
driver must provide a copy of the annual medical certification to the
employer for retention in the driver's qualification file, or keep a
copy of his/her driver's qualification file if he/she is self-employed.
The driver must also have a copy of the exemption when driving, for
presentation to a duly authorized Federal, State, or local enforcement
official. The exemption will be rescinded if: (1) The person fails to
comply with the terms and conditions of the exemption; (2) the
exemption has resulted in a lower level of safety than was maintained
before it was granted; or (3) continuation of the exemption would not
be consistent with the goals and objectives of 49 U.S.C. 31136(e) and
31315.

VI. Preemption

    During the period the exemption is in effect, no State shall
enforce any law or regulation that conflicts with this exemption with
respect to a person operating under the exemption.

VII. Conclusion

    Based on its evaluation of the two exemption applications, FMCSA
renews the exemptions of the aforementioned drivers from the epilepsy
and seizure disorders prohibition in 49 CFR 391.41(b)(8). In accordance
with 49 U.S.C. 31136(e) and 31315, each exemption will be valid for two
years unless revoked earlier by FMCSA.

    Issued on: April 11, 2019.
Larry W. Minor,
Associate Administrator for Policy.
[FR Doc. 2019-07794 Filed 4-17-19; 8:45 am]
BILLING CODE 4910-EX-P


[Federal Register Volume 83, Number 125 (Thursday, June 28, 2018)]
[Rules and Regulations]
[Pages 30316-30317]
[FR Doc No: 2018-13948]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 25

[Docket No. FAA-2018-0602; Special Conditions No. 25-729-SC]

Special Conditions: Airbus Model A318, A319, A320 and A321 Series
Airplanes; Electronic System Security Protection From Unauthorized
Internal Access

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final special conditions; request for comments.

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SUMMARY: These special conditions are issued for the Airbus Model A318,
A319, A320 and A321 series airplanes. These airplanes will have a novel
or unusual design feature when compared to the state of technology
envisioned in the airworthiness standards for transport category
airplanes. This design feature is airplane electronic systems and
networks that allow access, from aircraft internal sources (e.g.,
wireless devices, internet connectivity), to the airplane's previously
isolated, internal, electronic components. The applicable airworthiness
regulations do not contain adequate or appropriate safety standards for
this design feature. These special conditions contain the additional
safety standards that the Administrator considers necessary to
establish a level of safety equivalent to that established by the
existing airworthiness standards.

DATES: This action is effective on Airbus on June 28, 2018. Send
comments on or before August 13, 2018.

ADDRESSES: Send comments identified by Docket No. FAA-2018-0602 using
any of the following methods:
     Federal eRegulations Portal: Go to http://www.regulations.gov/ and follow the online instructions for sending
your comments electronically.
     Mail: Send comments to Docket Operations, M-30, U.S.
Department of Transportation (DOT), 1200 New Jersey Avenue SE, Room
W12-140, West Building Ground Floor, Washington, DC 20590-0001.
     Hand Delivery or Courier: Take comments to Docket
Operations in Room W12-140 of the West Building Ground Floor at 1200
New Jersey Avenue SE, Washington, DC, between 9 a.m. and 5 p.m., Monday
through Friday, except Federal holidays.
     Fax: Fax comments to Docket Operations at<PHONE_NUMBER>.
    Privacy: The FAA will post all comments it receives, without
change, to http://www.regulations.gov/, including any personal
information the commenter provides. Using the search function of the
docket website, anyone can find and read the electronic form of all
comments received into any FAA docket, including the name of the
individual sending the comment (or signing the comment for an
association, business, labor union, etc.). DOT's complete Privacy Act
Statement can be found in the Federal Register published on April 11,
2000 (65 FR 19477-19478).
    Docket: Background documents or comments received may be read at
http://www.regulations.gov/ at any time. Follow the online instructions
for accessing the docket or go to Docket Operations in Room W12-140 of
the West Building Ground Floor at 1200 New Jersey Avenue SE,
Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday,
except Federal holidays.

FOR FURTHER INFORMATION CONTACT: Varun Khanna, Airplane and Flight Crew
Interface Section, AIR-671, Transport Standards Branch, Policy and
Innovation Division, Aircraft Certification Service, Federal Aviation
Administration, 2200 South 216th Street, Des Moines, Washington 98198;
telephone and fax<PHONE_NUMBER>; email Varun.Khann[email protected].

SUPPLEMENTARY INFORMATION: The substance of these special conditions
previously has been published in the Federal Register for public
comment. These special conditions have been derived without substantive
change from those previously issued. It is unlikely that prior public
comment would result in a significant change from the substance
contained herein. Therefore, the FAA has determined that prior public
notice and comment are unnecessary, and finds that, for the same
reason, good cause exists for adopting these special conditions upon
publication in the Federal Register.

Comments Invited

    We invite interested people to take part in this rulemaking by
sending written comments, data, or views. The most helpful comments
reference a specific portion of the special conditions, explain the
reason for any recommended change, and include supporting data.

    We will consider all comments we receive by the closing date for
comments. We may change these special conditions based on the comments
we receive.

Background

    On February 2, 2017, Airbus applied for a change to Type
Certificate No. A28NM for the installation of electronic network system
architecture or Flight Operations and Maintenance Exchanger (FOMAX)
equipment in the Model A318, A319, A320 and A321 series airplanes. The
Airbus Model A318, A319, A320 and A321 series airplanes are twin-
engine, transport category airplanes with a passenger seating capacity
of 136 to 230 and a maximum takeoff weight of 123,458 to 213,848
pounds, depending on the specific design.

Type Certification Basis

    Under the provisions of title 14, Code of Federal Regulations (14
CFR) 21.101, Airbus must show that the Model A318, A319, A320 and A321
series airplanes as changed, continue to meet the applicable provisions
of the regulations listed in Type Certificate No. A28NM or the
applicable regulations in effect on the date of application for the
change, except for earlier amendments as agreed upon by the FAA.
    If the Administrator finds that the applicable airworthiness
regulations (i.e., 14 CFR part 25) do not contain adequate or
appropriate safety standards for the Airbus Model A318, A319, A320 and
A321 series airplanes because of a novel or unusual design feature,
special conditions are prescribed under the provisions of Sec.  21.16
    Special conditions are initially applicable to the model for which
they are issued. Should the type certificate for that model be amended
later to include any other model that incorporates the same novel or
unusual design feature, or should any other model already included on
the same type certificate be modified to incorporate the same novel or
unusual design feature, these special conditions would also apply to
the other model under Sec.  21.101.
    In addition to the applicable airworthiness regulations and special
conditions, the Airbus Model A318, A319, A320 and A321 series airplanes
must comply with the fuel vent and exhaust-emission requirements of 14
CFR part 34, and the noise certification requirements of 14 CFR part
36.
    The FAA issues special conditions, as defined in 14 CFR 11.19, in
accordance with Sec.  11.38, and they become part of the type
certification basis under Sec.  21.101.

Novel or Unusual Design Features

    The Airbus Model A318, A319, A320 and A321 series airplanes will
incorporate the following novel or unusual design feature:
    The installation and activation of electronic network system
architecture or Flight Operations and Maintenance Exchanger (FOMAX)
equipment that allows access from internal sources (e.g., wireless
devices, internet connectivity) to the airplane's once isolated
internal electronic components.

Discussion

    The Airbus Model A318, A319, A320 and A321 series airplanes
architecture is novel or unusual for commercial transport airplanes
because it allows connection to previously isolated data networks
connected to systems that perform functions required for the safe
operation of the airplane. This data network and design integration may
result in security vulnerabilities from intentional or unintentional
corruption of data and systems critical to the safety and maintenance
of the airplane. The existing regulations and guidance material did not
anticipate this type of system architecture or electronic access to
aircraft systems. Furthermore, 14 CFR regulations and the current
system safety assessment policy and techniques do not address potential
security vulnerabilities, which could be exploited by unauthorized
access to airplane networks and servers. Therefore, these special
conditions are to ensure that the security of airplane systems and
networks is not compromised by unauthorized wired or wireless internal
access.
    These special conditions contain the additional safety standards
that the Administrator considers necessary to establish a level of
safety equivalent to that established by the existing airworthiness
standards.

Applicability

    As discussed above, these special conditions are applicable to the
Model A318, A319, A320 and A321 series airplanes. Should Airbus apply
at a later date for a change to the type certificate to include another
model incorporating the same novel or unusual design feature, these
special conditions would apply to that model as well.

Conclusion

    This action affects only a certain novel or unusual design feature
on Airbus Model A318, A319, A320 and A321 series airplanes. It is not a
rule of general applicability.

List of Subjects in 14 CFR Part 25

    Aircraft, Aviation safety, Reporting and recordkeeping
requirements.

Authority Citation

    The authority citation for these special conditions is as follows:

    Authority:  49 U.S.C. 106(f), 106(g), 40113, 44701, 44702,
44704.

The Special Conditions

0
Accordingly, pursuant to the authority delegated to me by the
Administrator, the following special conditions are issued as part of
the type certification basis for Airbus Model A318, A319, A320 and A321
series airplanes.
    1. The applicant must ensure that the design provides isolation
from, or airplane electronic system security protection against, access
by unauthorized sources internal to the airplane. The design must
prevent inadvertent and malicious changes to, and all adverse impacts
upon, airplane equipment, systems, networks, or other assets required
for safe flight and operations.
    2. The applicant must establish appropriate procedures to allow the
operator to ensure that continued airworthiness of the aircraft is
maintained, including all post type certification modifications that
may have an impact on the approved electronic system security
safeguards.

    Issued in Des Moines, Washington, on June 25, 2018.
Victor Wicklund,
Manager, Transport Standards Branch, Policy and Innovation Division,
Aircraft Certification Service.
[FR Doc. 2018-13948 Filed 6-27-18; 8:45 am]
 BILLING CODE 4910-13-P


[Federal Register: October 16, 2009 (Volume 74, Number 199)]
[Rules and Regulations]
[Page 53179-53181]
[DOCID:fr16oc09-15]

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DEPARTMENT OF HOMELAND SECURITY

Federal Emergency Management Agency

44 CFR Part 64

[Docket ID FEMA-2008-0020; Internal Agency Docket No. FEMA-8099]

Suspension of Community Eligibility

AGENCY: Federal Emergency Management Agency, DHS.

ACTION: Final rule.

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SUMMARY: This rule identifies communities, where the sale of flood
insurance has been authorized under the National Flood Insurance
Program (NFIP), that are scheduled for suspension on the effective
dates listed within this rule because of noncompliance with the
floodplain management requirements of the program. If the Federal
Emergency Management Agency (FEMA) receives documentation that the
community has adopted the required floodplain management measures prior
to the effective suspension date given in this rule, the suspension
will not occur and a notice of this will be provided by publication in
the Federal Register on a subsequent date.

DATES: Effective Dates: The effective date of each community's
scheduled suspension is the third date (``Susp.'') listed in the third
column of the following tables.

FOR FURTHER INFORMATION CONTACT: If you want to determine whether a
particular community was suspended on the suspension date or for
further information, contact David Stearrett, Mitigation Directorate,
Federal Emergency Management Agency, 500 C Street, SW., Washington, DC
20472,<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: The NFIP enables property owners to purchase
flood insurance which is generally not otherwise available. In return,
communities agree to adopt and administer local floodplain management
aimed at protecting lives and new construction from future flooding.
Section 1315 of the National Flood Insurance Act of 1968, as amended,
42 U.S.C. 4022, prohibits flood insurance coverage as authorized under
the NFIP, 42 U.S.C. 4001 et seq.; unless an appropriate public body
adopts adequate floodplain management measures with effective
enforcement measures. The communities listed in this document no longer
meet that statutory requirement for compliance with program
regulations, 44 CFR part 59. Accordingly, the communities will be
suspended on the effective date in the third column. As of that date,
flood insurance will no longer be available in the community. However,
some of these communities may adopt and submit the required
documentation of legally enforceable floodplain management measures
after this rule is published but prior to the actual suspension date.
These communities will not be suspended and will continue their
eligibility for the sale of insurance. A notice withdrawing the
suspension of the communities will be published in the Federal
Register.
    In addition, FEMA has identified the Special Flood Hazard Areas
(SFHAs) in these communities by publishing a Flood Insurance Rate Map
(FIRM). The

date of the FIRM, if one has been published, is indicated in the fourth
column of the table. No direct Federal financial assistance (except
assistance pursuant to the Robert T. Stafford Disaster Relief and
Emergency Assistance Act not in connection with a flood) may legally be
provided for construction or acquisition of buildings in identified
SFHAs for communities not participating in the NFIP and identified for
more than a year, on FEMA's initial flood insurance map of the
community as having flood-prone areas (section 202(a) of the Flood
Disaster Protection Act of 1973, 42 U.S.C. 4106(a), as amended). This
prohibition against certain types of Federal assistance becomes
effective for the communities listed on the date shown in the last
column. The Administrator finds that notice and public comment under 5
U.S.C. 553(b) are impracticable and unnecessary because communities
listed in this final rule have been adequately notified.
    Each community receives 6-month, 90-day, and 30-day notification
letters addressed to the Chief Executive Officer stating that the
community will be suspended unless the required floodplain management
measures are met prior to the effective suspension date. Since these
notifications were made, this final rule may take effect within less
than 30 days.
    National Environmental Policy Act. This rule is categorically
excluded from the requirements of 44 CFR part 10, Environmental
Considerations. No environmental impact assessment has been prepared.
    Regulatory Flexibility Act. The Administrator has determined that
this rule is exempt from the requirements of the Regulatory Flexibility
Act because the National Flood Insurance Act of 1968, as amended, 42
U.S.C. 4022, prohibits flood insurance coverage unless an appropriate
public body adopts adequate floodplain management measures with
effective enforcement measures. The communities listed no longer comply
with the statutory requirements, and after the effective date, flood
insurance will no longer be available in the communities unless
remedial action takes place.
    Regulatory Classification. This final rule is not a significant
regulatory action under the criteria of section 3(f) of Executive Order
12866 of September 30, 1993, Regulatory Planning and Review, 58 FR
51735.
    Executive Order 13132, Federalism. This rule involves no policies
that have federalism implications under Executive Order 13132.
    Executive Order 12988, Civil Justice Reform. This rule meets the
applicable standards of Executive Order 12988.
    Paperwork Reduction Act. This rule does not involve any collection
of information for purposes of the Paperwork Reduction Act, 44 U.S.C.
3501 et seq.

List of Subjects in 44 CFR Part 64

    Flood insurance, Floodplains.

0
Accordingly, 44 CFR part 64 is amended as follows:

PART 64--[AMENDED]

0
1. The authority citation for part 64 continues to read as follows:

    Authority:  42 U.S.C. 4001 et seq.; Reorganization Plan No. 3 of
1978, 3 CFR, 1978 Comp.; p. 329; E.O. 12127, 44 FR 19367, 3 CFR,
1979 Comp.; p. 376.

Sec.  64.6  [Amended]

0
2. The tables published under the authority of Sec.  64.6 are amended
as follows:

----------------------------------------------------------------------------------------------------------------
                                              Effective date
                                              authorization/
                                 Community   cancellation of    Current effective map     Date certain Federal
      State and location            No.       sale of flood             date              assistance no longer
                                               insurance in                                available in SFHAs
                                                community
----------------------------------------------------------------------------------------------------------------
          Region III

Virginia:
    Halifax, Town of, Halifax        510301  March 6, 1975,   October 16, 2009........  October 16, 2009.
     County.                                  Emerg; October
                                              8, 1982, Reg;
                                              October 16,
                                              2009, Susp.
    Halifax County,                  510188  April 4, 1973,   *......do...............   do.
     Unincorporated Areas.                    Emerg; August
                                              1, 1978, Reg;
                                              October 16,
                                              2009, Susp.
    South Boston, Town of,           510153  December 13,     ......do................   do.
     Halifax County.                          1973, Emerg;
                                              March 15,
                                              1978, Reg;
                                              October 16,
                                              2009, Susp.

          Region IV

Alabama:
    Brantley, Town of,               010055  July 5, 2005,    ......do................   do.
     Crenshaw County.                         Emerg; NA,
                                              Reg; October
                                              16, 2009, Susp.
    Crenshaw County,                 010246  December 15,     ......do................   do.
     Unincorporated Areas.                    1975, Emerg;
                                              July 17, 1986,
                                              Reg; October
                                              16, 2009, Susp.
    Dozier, Town of, Crenshaw        010056  May 4, 1990,     ......do................   do.
     County.                                  Emerg; March
                                              1, 1995, Reg;
                                              October 16,
                                              2009, Susp.
    Glenwood, Town of,               010057  December 30,     ......do................   do.
     Crenshaw County.                         2003, Emerg;
                                              NA, Reg;
                                              October 16,
                                              2009, Susp.
    Luverne, City of,                010058  July 9, 1975,    ......do................   do.
     Crenshaw County.                         Emerg; June
                                              24, 1977, Reg;
                                              October 16,
                                              2009, Susp.
    Macon County,                    010148  May 29, 1975,    ......do................   do.
     Unincorporated Areas.                    Emerg; April
                                              1, 1982, Reg;
                                              October 16,
                                              2009, Susp.
    Notasulga, Town of, Macon        010149  July 2, 1975,    ......do................   do.
     County.                                  Emerg;
                                              November 24,
                                              1978, Reg;
                                              October 16,
                                              2009, Susp.
    Tuskegee, City of, Macon         010150  August 8, 1975,  ......do................   do.
     County.                                  Emerg; January
                                              6, 1982, Reg;
                                              October 16,
                                              2009, Susp.
Kentucky:
    Princeton, City of,              210031  June 30, 1975,   ......do................   do.
     Caldwell County.                         Emerg; August
                                              19, 1986, Reg;
                                              October 16,
                                              2009, Susp.

           Region V

Illinois:
    Hamilton, City of,               170271  February 24,     ......do................   do.
     Hancock County.                          1975, Emerg;
                                              October 18,
                                              1983, Reg;
                                              October 16,
                                              2009, Susp.

          Region VII

Missouri:
    Fayette, City of, Howard         290163  May 19, 1975,    ......do................   do.
     County.                                  Emerg; January
                                              19, 1983, Reg;
                                              October 16,
                                              2009, Susp.
    Franklin, City of, Howard        290482  July 7, 1975,    ......do................   do.
     County.                                  Emerg; March
                                              2, 1983, Reg;
                                              October 16,
                                              2009, Susp.
----------------------------------------------------------------------------------------------------------------
* Do. = Ditto.
Code for reading third column: Emerg.--Emergency; Reg.--Regular; Susp.--Suspension.

    Dated: October 7, 2009.
Edward L. Connor,
Acting Assistant Administrator, Mitigation Directorate, Department of
Homeland Security, Federal Emergency Management Agency.
[FR Doc. E9-24913 Filed 10-15-09; 8:45 am]

BILLING CODE 9110-12-P


[Federal Register Volume 85, Number 127 (Wednesday, July 1, 2020)]
[Notices]
[Pages 39619-39625]
[FR Doc No: 2020-14116]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-89153; File No. SR-Phlx-2020-30]

Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend Options 9,
Section 13 To Increase the Position Limits for Options on Certain
Exchange-Traded Funds

June 25, 2020.
    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 June 17, 2020, Nasdaq PHLX LLC (``Phlx'' or ``Exchange'') filed with
the Securities and Exchange Commission (``Commission'') the proposed
rule change as described in Items I and II below, which Items have been
prepared by the 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 the
Substance of the Proposed Rule Change

    The Exchange proposes to amend Options 9, Section 13, Position
Limits, to increase position limits for options on certain exchange-
traded funds (``ETFs''). The Exchange is also proposing to amend
Options 4A, Section 10, Limitation of Exchange Liability, to replace
this rule with rule text that was inadvertently deleted in a prior rule
change.
    The text of the proposed rule change is available on the Exchange's
website at http://nasdaqphlx.cchwallstreet.com/, at the principal
office of the Exchange, and at the Commission's Public Reference Room.

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

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

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

1. Purpose
    The Exchange proposes to amend Options 9, Section 13, Position
Limits, to increase position limits for options on certain exchange-
traded funds (``ETFs''). These proposed rule changes are based on the
similar proposal by Cboe Exchange, Inc. (``Cboe'').\3\ The Exchange
proposes to make certain minor non-substantive technical corrections to
certain ETF names and symbols within Options 9, Section 13. The
Exchange is also proposing to amend Options 4A, Section 10, Limitation
of Exchange Liability, to replace this rule with rule text that was
inadvertently deleted in a prior rule change. Each change will be
described below.
---------------------------------------------------------------------------

    \3\ See Securities Exchange Act Release No. 88768 (April 29,
2020) (SR-CBOE-2020-015) (Notice of Filing of Amendment No. 1 and
Order Granting Accelerated Approval of a Proposed Rule Change, as
Modified by Amendment No. 1, to Increase Position Limits for Options
on Certain Exchange-Traded Funds and Indexes). The Cboe proposal
also proposed to increase position limits for options overlying the
MSCI Emerging Markets Index (``MXEF'') and the MSCI EAFE Index
(``MXEA''). The Exchange, however, does not list options on the MXEF
or MXEA indexes. Accordingly, this proposal is limited to the ETFs
described above.
---------------------------------------------------------------------------

    Position limits are designed to address potential manipulative
schemes and adverse market impacts surrounding the use of options, such
as disrupting the market in the security underlying the options. While
position limits should address and discourage the potential for
manipulative schemes and adverse market impact, if such limits are set
too low, participation in the options market may be discouraged. The
Exchange believes that position limits must therefore be balanced
between mitigating concerns of any potential manipulation and the cost
of inhibiting potential hedging activity that

could be used for legitimate economic purposes.
    The Exchange has observed an ongoing increase in demand in options
on the SPDR[supreg] S&P 500[supreg] ETF Trust (``SPY''),
iShares[supreg] MSCI EAFE ETF (``EFA''), iShares[supreg] China Large-
Cap ETF (``FXI''), iShares[supreg] iBoxx[supreg] High Yield Corporate
Bond Fund (``HYG''), Financial Select Sector SPDR[supreg] Fund
(``XLF'') (collectively, with the aforementioned ETFs, the ``Underlying
ETFs'') for both trading and hedging purposes. Though the demand for
these options on the Underlying ETFs appear to have increased, position
limits (and corresponding exercise limits) for these options have
remained the same. The Exchange believes these unchanged position
limits may have impeded, and may continue to impede, trading activity
and strategies of investors, such as use of effective hedging vehicles
or income generating strategies (e.g., buy-write or put-write), and the
ability of Market Makers to make liquid markets with tighter spreads in
these options, resulting in the transfer of volume to over-the-counter
(``OTC'') markets. OTC transactions occur through bilateral agreements,
the terms of which are not publically disclosed to the marketplace. As
such, OTC transactions do not contribute to the price discovery process
on a public exchange or other lit markets. Therefore, the Exchange
believes that the proposed increases in position limits (and exercise
limits) for options on the Underlying ETFs may enable liquidity
providers to provide additional liquidity to the Exchange and other
market participants to transfer their liquidity demands from OTC
markets to the Exchange, as well as other options exchange on which
they participate. As described in further detail below, the Exchange
believes that the continuously increasing market capitalization of the
Underlying ETFs and ETF component securities, as well as the highly
liquid markets for those securities, reduces the concerns for potential
market manipulation and/or disruption in the underlying markets upon
increasing position limits, while the rising demand for trading options
on the Underlying ETFs for legitimate economic purposes compels an
increase in position limits (and corresponding exercise limits).
Proposed Position Limits for Options on the Underlying ETFs
    Position limits for options on ETFs are determined pursuant to
Options 9, Section 13, and vary according to the number of outstanding
shares and the trading volumes of the underlying stocks or ETFs over
the past six months. Pursuant to Options 9, Section 13, the largest in
capitalization and the most frequently traded stocks and ETFs have an
option position limit of 250,000 contracts (with adjustments for
splits, re-capitalizations, etc.) on the same side of the market; and
smaller capitalization stocks and ETFs have position limits of 200,000,
75,000, 50,000 or 25,000 contracts (with adjustments for splits,
recapitalizations, etc.) on the same side of the market. Options on HYG
and XLF are currently subject to the standard position limit of 250,000
contracts. Options 9, Section 13 sets forth separate position limits
for options on specific ETFs, including SPY, FXI and EFA.
    The Exchange proposes to amend Options 9, Section 13 to double the
position limits and, as a result, exercise limits, for options on each
of FXI, EFA, SPY, HYG and XLF. The Exchange also proposes to list
position limits for HYG and XLF within Options 9, Section 13. The table
below represents the current, and proposed, position limits for options
on the ETFs subject to this proposal:

------------------------------------------------------------------------
                                              Current        Proposed
                   ETF                    position limit  position limit
------------------------------------------------------------------------
SPY.....................................       1,800,000       3,600,000
EFA.....................................         500,000       1,000,000
FXI.....................................         500,000       1,000,000
HYG.....................................         250,000         500,000
XLF.....................................         250,000         500,000
------------------------------------------------------------------------

    The Exchange notes that the proposed position limits for options on
EFA and FXI are consistent with existing position limits for options on
the iShares[supreg] Russell 2000 ETF (``IWM'') and the iShares[supreg]
MSCI Emerging Markets ETF (``EEM''), while the proposed limits for
options on XLF and HYG are consistent with current position limits for
options on the iShares[supreg] MSCI Brazil Capped ETF (``EWZ''),
iShares[supreg] 20+ Year Treasury Bond Fund ETF (``TLT''), and
iShares[supreg] MSCI Japan ETF (``EWJ''). The Exchange represents that
the Underlying ETFs qualify for either (1) the initial listing criteria
set forth in Supplementary Material .06(b) to Options 4, Section 3 for
ETFs holding non-U.S. component securities, or (2) generic listing
standards for series of portfolio depository receipts and index fund
shares based on international or global indexes under which a
comprehensive surveillance agreement (``CSA'') is not required, as well
as the continued listing criteria in Options 4, Section 4.\4\ In
compliance with its listing rules, the Exchange also represents that
non-U.S. component securities that are not subject to a comprehensive
surveillance agreement (``CSA'') do not, in the aggregate, represent
more than more than 50% of the weight of any of the Underlying ETFs.\5\
---------------------------------------------------------------------------

    \4\ The Exchange notes that the initial listing criteria for
options on ETFs that hold non-U.S. component securities are more
stringent than the maintenance listing criteria for those same ETF
options. See Supplementary Material .06(b) to Options 4, Section 3;
Supplementary Material .06 to Options 4, Section 4.
    \5\ See Supplementary Material .06(b) to Options 4, Section 3.
---------------------------------------------------------------------------

Composition and Growth Analysis for Underlying ETFs
    As stated above, position (and exercise) limits are intended to
prevent the establishment of options positions that can be used or
might create incentives to manipulate the underlying market so as to
benefit options positions. The Commission has recognized that these
limits are designed to minimize the potential for mini-manipulations
and for corners or squeezes of the underlying market, as well as serve
to reduce the possibility for disruption of the options market itself,
especially in illiquid classes.\6\ The Underlying ETFs as well as the
ETF components are highly liquid, and are based on a broad set of
highly liquid securities and other reference assets, as demonstrated
through the trading statistics presented in this proposal. Indeed, the
Commission recognized the liquidity of the securities comprising the
underlying interest of SPY and permitted no position limits on SPY
options from 2012 through 2018.\7\
---------------------------------------------------------------------------

    \6\ See Securities Exchange Act Release No. 67672 (August 15,
2012), 77 FR 50750 (August 22, 2012) (SR-NYSEAmex-2012-29).
    \7\ See Securities Exchange Act Release No. 67999(October 5,
2012), 77 FR 62295 (October 12, 2012) (SR-Phlx-2012-122), which
implemented a pilot program that ran through 2017, during which
there were no position limits for options on SPY. The Exchange notes
that throughout the duration of the pilot program it was not aware
of any problems created or adverse consequences as of result of the
pilot program. See also Securities Exchange Act Release No. 83412
(June 12, 2018), 83 FR 28298 (June 18, 2018) (SR-Phlx-2018-44).
---------------------------------------------------------------------------

    To support the proposed position limit increases (and corresponding
increase in exercise limits), the Exchange considered both liquidity of
the Underlying ETFs and the component securities of the Underlying
ETFs, as well as the availability of economically equivalent products
to the overlying options and their respective position limits. For
instance, some of the Underlying ETFs are based upon broad-based
indices that underlie cash-settled options, and therefore the options
on the Underlying ETFs are economically equivalent to the options

on those indices, which have no position limits. Other Underlying ETFs
are based upon broad-based indices that underlie cash-settled options
with position limits reflecting notional values that are larger than
current position limits for options on the ETF analogues. For indexes
that are tracked by an Underlying ETF but on which there are no options
listed, the Exchange believes, based on the liquidity, depth and
breadth of the underlying market of the components of the indexes, that
each of the indexes referenced by the applicable ETFs would be
considered a broad-based index under the Exchange's Rules.
Additionally, if in some cases certain position limits are appropriate
for the options overlying comparable indexes or basket of securities
that the Underlying ETFs track then those economically equivalent
position limits should be appropriate for the options overlying the
Underlying ETFs.
    The Exchange is presenting data collected by Cboe as part of its
initial filing to increase position and exercise limits on the
Underlying ETFs, that the Commission approved,\8\ following trading
statistics regarding shares of and options on the Underlying ETFs, as
well as the component securities:
---------------------------------------------------------------------------

    \8\ See supra note 3.

----------------------------------------------------------------------------------------------------------------
                         ADV \9\ (ETF                            Shares
        Product             shares)         ADV (option        outstanding     Fund market   Total market cap of
                           (million)         contracts)        (ETFs)\10\       cap (USD)    ETF Components \11\
----------------------------------------------------------------------------------------------------------------
SPY...................            70.3  2.8 million........           968.7           312.9  29.3 trillion.
                                                                  (million)       (billion)
FXI...................            26.1  196,600............           106.8             4.8  28.0 trillion.
EFA...................            25.1  155,900............           928.2            64.9  19.3 trillion.
HYG...................            20.0  193,700............           216.6            19.1  906.4 billion. \12\
XLF...................            48.8  102,100............           793.6            24.6  3.8 trillion.
----------------------------------------------------------------------------------------------------------------

    The Exchange is presenting the following data collected by Cboe as
part of its initial filing, that the Commission has approved,\13\ for
the same trading statistics, where applicable, as above regarding a
sample of other ETFs, as well as the current position limits for
options on such ETFs pursuant to Options 9, Section 13, to draw
comparisons in support of proposed position limit increases for options
on a number of the Underlying ETFs (see further discussion below):
---------------------------------------------------------------------------

    \9\ Cboe's Average daily volume (ADV) data for ETF shares and
options contracts are for all of 2019. Additionally, reference to
ADV in ETF shares, and ETF options herein this proposal are for all
of 2019, unless otherwise indicated.
    \10\ See Admendment No.1 to SR-CBOE-2020-015, at page 4,
available at https://www.sec.gov/comments/sr-cboe-2020-015/srcboe2020015-7081714-215592.pdf (``Admendment No.1'').
    \11\ See Amendment No.1, at page 4.
    \12\ See Notice, at note 13.
    \13\ See supra note 3.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                           Shares
                                          ADV (ETF       ADV (option     outstanding     Fund market        Total market cap of ETF           Current
               Product                     shares)       contracts)        (ETFs)         cap (USD)                components                position
                                          (million)                       (million)                                                           limits
--------------------------------------------------------------------------------------------------------------------------------------------------------
QQQ..................................            30.2         670,200           410.3  88.7 (billion)  10.1 trillion....................       1,800,000
EWZ..................................            26.7         186,500             233            11.3  234.6 billion....................         500,000
TLT..................................             9.6          95,200           128.1            17.5  N/A..............................         500,000
EWJ..................................             7.2           5,700           236.6            14.2  3 trillion.......................         500,000
--------------------------------------------------------------------------------------------------------------------------------------------------------

    The Exchange believes that, overall, the liquidity in the shares of
the Underlying ETFs and in the component securities of the Underlying
ETFs and in their overlying options, as well as the large market
capitalizations and structure of each of the Underlying ETFs support
the proposal to increase the position limits for each option class (and
corresponding exercise limits). Given the robust liquidity and
capitalization in the Underlying ETFs and in the component securities
of the Underlying ETFs the Exchange does not anticipate that the
proposed increase in position limits would create significant price
movements. Also, the Exchange believes the market capitalization of the
underlying component securities of the applicable index or reference
asset are large enough to adequately absorb potential price movements
that may be caused by large trades.
    The following analyses for the Underlying ETFs, which the Exchange
agrees with in support of this proposal, as well as the statistics
presented in support thereof, were presented by Cboe in their initial
filing, which was approved by the Commission.\14\ The Exchange notes
that SPY tracks the performance of the S&P 500 Index, which is an index
of diversified large cap U.S. companies.\15\ It is composed of 505
selected stocks spanning over approximately 24 separate industry
groups. The S&P 500 is one of the most commonly followed equity
indices, and is widely considered to be the best indicator of stock
market performance as a whole. SPY is one of the most actively traded
ETFs, and, since 2017,\16\ its ADV has increased from approximately
64.6 million shares to 70.3 million shares by the end of 2019.
Similarly, its ADV in options contracts has increased from 2.6 million
to 2.8 million through 2019.\17\ As noted, the demand for options
trading on SPY has continued to increase, however, the position limits
have remained the same, which the Exchange believes may have impacted
growth in SPY option volume from 2017 through 2019. The Exchange also
notes that SPY shares are more liquid than INVESCO QQQ Trust\SM\,
Series 1 (``QQQ'') shares, which is also currently subject to a
position limit of 1,800,000 contracts. Specifically, SPY currently
experiences over twice the

ADV in shares and over four times the ADV in options than that of
QQQ.\18\
---------------------------------------------------------------------------

    \14\ See supra note 3.
    \15\ See SPDR S&P 500 ETF Trust, available at https://www.ssga.com/us/en/individual/etfs/funds/spdr-sp-500-etf-trust-spy
(January 21, 2020).
    \16\ See Securities Exchange Release No. 82932 (March 22, 2018),
83 FR 13316 (March 28, 2018) (SR-Phlx-2018-24) (Notice of Filing and
Immediate Effectiveness of Proposed Rule Change To Amend Section (a)
of Exchange Rule 1001, Position Limits, To Increase the Position
Limits for Options). See also supra note 3.
    \17\ See also Securities Exchange Act Release No. 83412 (June
12, 2018), 83 FR 28298 (June 18, 2018) (SR-Phlx-2018-44) (Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend
Rule 1001, Entitled ``Position Limits'').
    \18\ The 2019 ADV for QQQ shares is 30.2 million and for options
on QQQ is 670,200.
---------------------------------------------------------------------------

    EFA tracks the performance of MSCI EAFE Index (``MXEA''), which is
comprised of over 900 large and mid-cap securities across 21 developed
markets, including countries in Europe, Australia and the Far East,
excluding the U.S. and Canada.\19\ In support of its proposal to
increase the position limit for EFA, Cboe's proposal specifies, that
from 2017 through 2019, ADV has grown significantly in shares of EFA
and in options on EFA, from approximately 19.4 million shares in 2017
to 25.1 million through 2019, and from approximately 98,800 options
contract in 2017 to 155,900 through 2019. Further, Cboe compared the
notional value of EFA's share price of $69.44 and MXEA's index level of
2036.94, approximately 29 EFA option contracts equal one MXEA option
contract. Based on the above comparison of notional values, Cboe
concluded that a position limit for EFA options would be economically
equivalent to that of MXEA options which equates to 725,000 contracts
(previously) and 1,450,000 for Cboe's current 50,000 contract position
limit for MXEA options.\20\ Cboe also noted that MXEA index options
have an ADV of 594 options contracts, which equate to an ADV of 17,226
EFA option contracts (as that is 29 times the size of 594). The
Exchange believes the significantly higher actual ADV (155,900
contracts), economically equivalent ADV (17,226 contracts), notional
value, and economically equivalent position limits for EFA as compared
to MXEA options, supports an increase in position limits for EFA
options from 500,000 contracts to 1,000,000 contracts.
---------------------------------------------------------------------------

    \19\ See iShares MSCI EAFE ETF, available at https://www.ishares.com/us/products/239623/ishares-msci-eafe-etf (February
10, 2020).
    \20\ The Exchange does not list options on foreign indexes.
---------------------------------------------------------------------------

    FXI tracks the performance of the FTSE China 50 Index, which is
composed of the 50 largest Chinese stocks.\21\ According to Cboe, FXI
shares and options have also experienced increased liquidity since
2017, as ADV has grown from approximately 15.1 million shares in 2017
to 26.1 million through 2019, as well as approximately 71,900 options
contracts in 2017 to 196,600 through 2019. Cboe notes that although
there are currently no options on the FTSE China 50 Index listed for
trading, the components of the FTSE China 50 Index, which can be used
to create a basket of stocks that equate to the FXI ETF, currently have
a market capitalization of approximately $28 trillion and FXI has a
market capitalization of $4.8 billion (as indicated above), which the
Exchange believes are both large enough to absorb potential price
movements caused by a large trade in FXI.
---------------------------------------------------------------------------

    \21\ See iShares China Large-Cap ETF, available at https://www.ishares.com/us/products/239536/ishares-china-largecap-etf
(February 10, 2020).
---------------------------------------------------------------------------

    XLF invests in a wide array of financial service firms with
diversified business lines ranging from investment management to
commercial and investment banking. It generally corresponds to the
price and yield performance of publicly traded equity securities of
companies in the SPDR Financial Select Sector Index.\22\ In support of
its proposal, Cboe compared XLF's ADV in shares and in options to the
ADV in shares and options for EWZ (26.7 million shares and 186,500
options contracts), TLT (9.6 million shares and 95,200 options
contracts), and EWJ (7.2 million shares and 5,700 options contracts).
According to Cboe, XLF experiences significantly greater ADV in shares
and options than EWZ, TLT, and EWJ, which already have a position limit
of 500,000 contracts--the proposed position limit for XLF options.
According to Cboe, although there are no options listed on the SPDR
Financial Select Sector Index listed for trading, the components of the
index, which can be used to create a basket of stocks that equate to
the XLF ETF, currently have a market capitalization of $3.8 trillion
(indicated above). Additionally, XLF has a market capitalization of
$24.6 billion. The Exchange believes that both of these are large
enough to absorb potential price movements caused by a large trade in
XLF.
---------------------------------------------------------------------------

    \22\ See Select Sector SPDR ETFs, XLF, available at http://www.sectorspdr.com/sectorspdr/sector/xlf (January 15, 2020).
---------------------------------------------------------------------------

    Finally, HYG attempts to track the investment results of Markit
iBoxx[supreg] USD Liquid High Yield Index, which is composed of U.S.
dollar-denominated, high-yield corporate bonds and is one of the most
widely used high-yield bond ETFs.\23\ To support its proposed position
limit increase on HYG, Cboe compared the HYG's ADV in share and options
to that of both TLT (9.6 million shares and 95,200 options contracts),
and EWJ (7.2 million shares and 5,700 options contracts). The Exchange
agrees with Cboe's comparison and following analysis. Cboe found that
HYG experiences significantly higher ADV in shares and options than
both TLT and EWJ, which are currently subject to a position limit of
500,000 options contracts--the proposed limit for options on HYG.
According to Cboe, while HYG does not have an index option analogue
listed for trading, Cboe believes that its market capitalization of
$19.1 billion, and of $906.4 billion in component securities, is
adequate to absorb a potential price movement that may be caused by
large trades in HYG.
---------------------------------------------------------------------------

    \23\ See iShares iBoxx $ High Yield Corporate Bond ETF,
available at https://www.ishares.com/us/products/239565/ishares-iboxx-high-yield-corporatebond-etf (January 15, 2020).
---------------------------------------------------------------------------

Creation and Redemption for ETFs
    The Exchange believes that the creation and redemption process for
ETFs will lessen the potential for manipulative activity with options
on the Underlying ETFs. When an ETF provider wants to create more
shares, it looks to an Authorized Participant (generally a market maker
or other large financial institution) to acquire the securities the ETF
is to hold. For instance, when an ETF is designed to track the
performance of an index, the Authorized Participant can purchase all
the constituent securities in the exact same weight as the index, then
deliver those shares to the ETF provider. In exchange, the ETF provider
gives the Authorized Participant a block of equally valued ETF shares,
on a one-for-one fair value basis. The price is based on the net asset
value, not the market value at which the ETF is trading. The creation
of new ETF units can be conducted during an entire trading day, and is
not subject to position limits. This process works in reverse where the
ETF provider seeks to decrease the number of shares that are available
to trade. The creation and redemption process, therefore, creates a
direct link to the underlying components of the ETF, and serves to
mitigate potential price impact of the ETF shares that might otherwise
result from increased position limits for the ETF options.
    The Exchange understands that the ETF creation and redemption
process seeks to keep an ETF's share price trading in line with the
ETF's underlying net asset value. Because an ETF trades like a stock,
its share price will fluctuate during the trading day, due to simple
supply and demand. If demand to buy an ETF is high, for instance, the
ETF's share price might rise above the value of its underlying
securities. When this happens, the Authorized Participant believes the
ETF may now be overpriced, so it may buy shares of the component
securities and then sell ETF shares in the open market (i.e.
creations). This may drive the ETF's share price back toward the
underlying net asset value. Likewise, if the ETF share price starts
trading at a discount

to the securities it holds, the Authorized Participant can buy shares
of the ETF and redeem them for the underlying securities (i.e.
redemptions). Buying undervalued ETF shares may drive the share price
of the ETF back toward fair value. This arbitrage process helps to keep
an ETF's share price in line with the value of its underlying
portfolio.
Surveillance and Reporting Requirements
    The Exchange believes that increasing the position limits for the
options on the Underlying ETFs would lead to a more liquid and
competitive market environment for these options, which will benefit
customers interested in trading these products. The reporting
requirement for the options on the Underlying ETFs would remain
unchanged. Thus, the Exchange would still require that each member or
member organization that maintains positions in the options on the same
side of the market, for its own account or for the account of a
customer, report certain information to the Exchange. This information
would include, but would not be limited to, the options' positions,
whether such positions are hedged and, if so, a description of the
hedge(s). Market Makers would continue to be exempt from this reporting
requirement, however, the Exchange may access Market-Maker position
information.\24\ Moreover, the Exchange's requirement that members and
member organizations file reports with the Exchange for any customer
who held aggregate large long or short positions on the same side of
the market of 200 or more options contracts of any single class for the
previous day will remain at this level for the options subject to this
proposal and will continue to serve as an important part of the
Exchange's surveillance efforts.\25\
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    \24\ The Options Clearing Corporation (``OCC'') through the
Large Option Position Reporting (``LOPR'') system acts as a
centralized service provider for member and member organization
compliance with position reporting requirements by collecting data
from each member and member organization, consolidating the
information, and ultimately providing detailed listings of each
member's and member organization's report to the Exchange, as well
as Financial Industry Regulatory Authority, Inc. (``FINRA''), acting
as its agent pursuant to a regulatory services agreement (``RSA'').
    \25\ See Options 6E, Section 2 for reporting requirements.
---------------------------------------------------------------------------

    The Exchange believes that the existing surveillance procedures and
reporting requirements at the Exchange and other SROs are capable of
properly identifying disruptive and/or manipulative trading activity.
The Exchange also represents that it has adequate surveillances in
place to detect potential manipulation, as well as reviews in place to
identify potential changes in composition of the Underlying ETFs and
continued compliance with the Exchange's listing standards. These
procedures utilize daily monitoring of market activity via automated
surveillance techniques to identify unusual activity in both options
and the underlying's, as applicable.\26\ The Exchange also notes that
large stock holdings must be disclosed to the Commission by way of
Schedules 13D or 13G,\27\ which are used to report ownership of stock
which exceeds 5% of a company's total stock issue and may assist in
providing information in monitoring for any potential manipulative
schemes.
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    \26\ The Exchange believes these procedures have been effective
for the surveillance of trading the options subject to this
proposal, and will continue to employ them.
    \27\ 17 CFR 240.13d-1.
---------------------------------------------------------------------------

    The Exchange believes that the current financial requirements
imposed by the Exchange and by the Commission adequately address
concerns regarding potentially large, unhedged positions in the options
on the Underlying ETFs. Current margin and risk-based haircut
methodologies serve to limit the size of positions maintained by any
one account by increasing the margin and/or capital that a member or
member organization must maintain for a large position held by itself
or by its customer.\28\ In addition, Rule 15c3-1 \29\ imposes a capital
charge on members and member organizations to the extent of any margin
deficiency resulting from the higher margin requirement.
---------------------------------------------------------------------------

    \28\ See Options 6C, Section 3 for a description of margin
requirements.
    \29\ 17 CFR 240.15c3-1.
---------------------------------------------------------------------------

Technical Corrections
    The Exchange proposes to amend Options 4A, Section 10 which
currently contains a rule titled ``Limitation of Exchange Liability.''
This rule is also currently within Options 4A, Section 19. The Exchange
notes that when relocating Phlx's Rules to a new Rulebook Shell,\30\
the Exchange inadvertently copied prior Rule 1102A (Limitation of
Exchange Liability) twice. The Exchange should have copied prior Rule
1002A (Exercise Limits) within Options 4A, Section 10, as noted within
a chart within the 19b4 to that rule change. At this time, the Exchange
proposes to restore prior Rule 1002A (Exercise Limits) within Options
4A, Section 10 as originally intended.
---------------------------------------------------------------------------

    \30\ See Securities Exchange Act Release No. 88213 (February 14,
2020), 85 FR 9859 (February 20, 2020) (SR-Phlx-2020-03) (``Phlx
Rulebook Relocation Rule Change'').
---------------------------------------------------------------------------

    The Exchange also proposes other technical amendments within
Options 9, Section 13 to: (1) Rename PowerShares QQQ Trust (``QQQQ'')
as INVESCO QQQ Trust\SM\, Series 1 (``QQQ''); (2) rename ``SPDR[supreg]
S&P 500[supreg] exchange-traded fund (``SPY ETF'') or (``SPY'') as
``SPDR[supreg] S&P 500[supreg] ETF (``SPY''); and (3) conform the text
of the remainder of the rule text.
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 thereunder applicable to the Exchange and, in particular,
the requirements of Section 6(b) of the Act.\31\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \32\ 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) \33\ requirement that the rules of an exchange not be
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
---------------------------------------------------------------------------

    \31\ 15 U.S.C. 78f(b).
    \32\ 15 U.S.C. 78f(b)(5).
    \33\ Id.
---------------------------------------------------------------------------

    The Exchange believes that the proposed increase in position limits
for options on the Underlying ETFs will remove impediments to and
perfect the mechanism of a free and open market and a national market
system, and, in general, protect investors and the public interest,
because it will provide market participants with the ability to more
effectively execute their trading and hedging activities. The proposed
increases will allow market participants to more fully implement
hedging strategies in related derivative products and to further use
options to achieve investment strategies (e.g., there are Exchange-
Traded Products (``ETPs'') that use options on the Underlying ETFs as
part of their investment strategy, and the applicable position limits
(and corresponding exercise limits) as they stand today may inhibit
these ETPs in achieving their investment objectives, to the detriment
of investors). Also,

increasing the applicable position limits may allow Market Makers to
provide the markets for these options with more liquidity in amounts
commensurate with increased consumer demand in such markets. The
proposed position limit increases may also encourage other liquidity
providers to shift liquidity, as well as encourage consumers to shift
demand, from over the counter markets onto the Exchange, which will
enhance the process of price discovery conducted on the Exchange
through increased order flow.
    In addition, the Exchange believes that the structure of the
Underlying ETFs, the considerable market capitalization of the funds,
underlying component securities and the liquidity of the markets for
the applicable options and underlying component securities will
mitigate concerns regarding potential manipulation of the products and/
or disruption of the underlying markets upon increasing the relevant
position limits. As a general principle, increases in market
capitalizations, active trading volume, and deep liquidity of
securities deter manipulation and/or disruption. This general principle
applies to the recently observed increased levels of market
capitalization, trading volume, and liquidity in shares of the
Underlying ETFs, and the components of the Underlying ETFs (as
described above). The Exchange does not believe that the options
markets or underlying markets would become susceptible to manipulation
and/or disruption as a result of the proposed position limit increases.
Indeed, the Commission has previously expressed the belief that
removing position and exercise limits may bring additional depth and
liquidity to the options markets without increasing concerns regarding
intermarket manipulation or disruption of the options or the underlying
securities.\34\
---------------------------------------------------------------------------

    \34\ See Securities Exchange Act Release No. 62147 (October 28,
2005) (SR-CBOE-2005-41), at 62149.
---------------------------------------------------------------------------

    Further, the Exchange notes that the proposed rule change to
increase position limits for select actively traded options, is not
novel and has been previously approved by the Commission. The proposed
increase to the position and exercise limits on the Underlying ETFs has
recently been approved by the Commission.\35\ The Commission has
previously approved, on a pilot basis, eliminating position limits for
options on SPY.\36\ Additionally, the Commission has approved similar
proposed rule changes by the Exchange to increase position limits for
options on highly liquid, actively traded ETFs.\37\ In approving
increases in position limits in the past, the Commission relied heavily
upon the exchange's surveillance capabilities, expressing trust in the
enhanced surveillances and reporting safeguards that the exchange took
in order to detect and deter possible manipulative behavior which might
arise from eliminating position and exercise limits.
---------------------------------------------------------------------------

    \35\ See supra note 3.
    \36\ See supra notes 7 and 8.
    \37\ See supra note 20.
---------------------------------------------------------------------------

    Furthermore, the Exchange again notes that that the proposed
position limits for options on EFA and FXI are consistent with existing
position limits for options on IWM and EEM, and the proposed limits for
options on XLF and HYG are consistent with current position limits for
options on EWZ, TLT, and EWJ.
    The Exchange's surveillance and reporting safeguards continue to be
designed to deter and detect possible manipulative behavior that might
arise from increasing or eliminating position and exercise limits in
certain classes. The Exchange believes that the current financial
requirements imposed by the Exchange and by the Commission adequately
address concerns regarding potentially large, unhedged position in the
options on the Underlying ETFs, further promoting just and equitable
principles of trading, the maintenance of a fair and orderly market,
and the protection of investors.
Technical Corrections
    The Exchange's proposal to amend Options 4A, Section 10, which
currently contains a rule titled ``Limitation of Exchange Liability''
is consistent with the Act. The Exchange noted in its Phlx Rulebook
Relocation Rule Change that it intended to copy prior Rule 1002A
(Exercise Limits) within Options 4A, Section 10. This rule was
inadvertently removed from the Rulebook. The Exchange did not intend to
replace this rule with a duplicate of prior Rule 1102A (Limitation of
Exchange Liability). Restoring prior Rule 1002A will correct the
Rulebook.
    The Exchange's proposal to make several technical amendments within
Options 9, Section 13, which separate line items for each product,
correct the names of products, and conform the rule language, are non-
substantive amendments. Accordingly, these technical amendments are
intended to bring greater clarity to the rule text and are consistent
with the Act.

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

    The Exchange does not believe that the proposed rule change will
impose an unnecessary burden on intra-market competition because it
will apply to all market participants. The Exchange does not believe
the proposed rule change will impose any burden on inter-market
competition that is not necessary or appropriate in furtherance of the
purposes of the Act because the increased position limits (and exercise
limits) will be available to all market participants and apply to each
in the same manner. The Exchange believes that the proposed rule change
will provide additional opportunities for market participants to more
efficiently achieve their investment and trading objectives of market
participants.
    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 Act. On the contrary, the Exchange
believes the proposal promotes competition because it may attract
additional order flow from the OTC market to exchanges, which would in
turn compete amongst each other for those orders.\38\ The Exchange
believes market participants would benefit from being able to trade
options with increased position limits in an exchange environment in
several ways, including but not limited to the following: (1) Enhanced
efficiency in initiating and closing out position; (2) increased market
transparency; and (3) heightened contra-party creditworthiness due to
the role of OCC as issuer and guarantor. The Exchange understands that
other options exchanges intend to file similar proposed rule changes
with the Commission to increase position limits on options on the
Underlying ETFs. This may further contribute to fair competition among
exchanges for multiply listed options.
---------------------------------------------------------------------------

    \38\ Additionally, several other options exchanges have the same
position limits as the Exchange is proposing, as they incorporate by
reference to Cboe's position limits, and as a result the position
limits for options on the Underlying ETFs and will increase at those
exchanges. See Nasdaq Stock Market LLC Rules, Options 9, Section 13
(Position Limits).
---------------------------------------------------------------------------

Technical Corrections
    The Exchange's proposal to amend Options 4A, Section 10, which
currently contains a rule titled ``Limitation of Exchange Liability''
does not impose an undue burden on competition. The Exchange noted in
its Phlx Rulebook Relocation Rule Change that it intended to copy prior
Rule 1002A (Exercise Limits) within Options 4A, Section 10.

This rule was inadvertently removed from the Rulebook. The Exchange did
not intend to replace this rule with a duplicate of prior Rule 1102A
(Limitation of Exchange Liability). Restoring prior Rule 1002A will
correct the Rulebook.
    The Exchange's proposal to make several technical amendments within
Options 9, Section 13, which separate line items for each product,
correct the names of products, and conform the rule language, are non-
substantive amendments. Accordingly, these technical amendments are
intended to bring greater clarity to the rule text and do not impose a
burden on competition.

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

    No written comments were either solicited or received.

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

    Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \39\ and Rule 19b-
4(f)(6) thereunder.\40\
---------------------------------------------------------------------------

    \39\ 15 U.S.C. 78s(b)(3)(A).
    \40\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of the proposed rule change, at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
---------------------------------------------------------------------------

    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \41\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \42\ permits the
Commission to 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 proposed rule change may become operative upon filing. The Exchange
states that waiver of the operative delay would be consistent with the
protection of investors and the public interest because it would allow
the Exchange to immediately increase its position and exercise limits
for the products subject to this proposal to those of Cboe, which the
Exchange believes will ensure fair competition among exchanges and
provide consistency and uniformity among members of both Cboe and Phlx
by subjecting members of both exchanges to the same position and
exercise limits for these multiply-listed options classes. For this
reason, the Commission believes that waiver of 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 as operative upon filing.\43\
---------------------------------------------------------------------------

    \41\ 17 CFR 240.19b-4(f)(6).
    \42\ 17 CFR 240.19b-4(f)(6)(iii).
    \43\ For purposes only of waiving the 30-day operative delay,
the Commission also 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 shall 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_ADDRESS>Please include
File Number SR-Phlx-2020-30 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-Phlx-2020-30. 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-Phlx-2020-30, and should be submitted on
or before July 22, 2020.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\44\
---------------------------------------------------------------------------

    \44\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-14116 Filed 6-30-20; 8:45 am]
BILLING CODE 8011-01-P