[Federal Register Volume 81, Number 250 (Thursday, December 29, 2016)]
[Notices]
[Pages 96018-96020]
[FR Doc No: 2016-31627]

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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

[Docket No. FDA-2000-D-0103]

Botanical Drug Development; 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 guidance for industry entitled ``Botanical Drug
Development.'' This guidance describes FDA's current thinking on
appropriate development plans for botanical drugs to be submitted in
new drug applications (NDAs) and specific recommendations for
submitting investigational new drug applications (INDs) to support
future NDA submissions for botanical drugs. In addition, this guidance
provides general information on the over-the-counter (OTC) drug
monograph system for botanical drugs. Although this guidance does not
intend to provide recommendations specific to botanical drugs to be
marketed under biologics license applications (BLAs), many scientific
principles described in this guidance may also apply to these products.
This guidance replaces the guidance for industry entitled ``Botanical
Drug Products'' issued in June 2004 and finalizes the August 2015 draft
guidance entitled ``Botanical Drug Development.''

DATES: Submit either electronic or written comments on Agency guidances
at any time.

ADDRESSES: You may submit comments 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): Division of Dockets Management (HFA-305), Food and Drug
Administration, 5630 Fishers Lane, Rm. 1061, Rockville, MD 20852.
     For written/paper comments submitted to the Division of
Dockets Management, 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-2000-D-0103 for ``Botanical Drug Development.'' 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 Division of Dockets Management 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 Division of Dockets Management. 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: http://www.fda.gov/regulatoryinformation/dockets/default.htm.
    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 Division of Dockets Management, 5630 Fishers
Lane, Rm. 1061, Rockville, MD 20852.
    Submit written requests for single copies of this 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. Send one self-
addressed adhesive label to assist that office in processing your
requests. See the SUPPLEMENTARY INFORMATION section for electronic
access to the guidance document.

FOR FURTHER INFORMATION CONTACT: Sau L. Lee, Center for Drug Evaluation
and Research, Food and Drug Administration, 10903 New Hampshire Ave.,
Bldg. 22, Rm. 2128, Silver Spring, MD 20993-0002,<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

I. Background

    FDA is announcing the availability of a guidance for industry
entitled ``Botanical Drug Development.'' This guidance describes the
current thinking of the Center for Drug Evaluation and Research (CDER)
on appropriate development plans for botanical drugs to be submitted in
NDAs and specific recommendations on submitting INDs in support of
future NDA submissions for botanical drugs. In addition, this guidance
provides general information on the OTC drug monograph system for
botanical drugs. Although this guidance does not intend to provide
recommendations specific to botanical drugs to be marketed under BLAs,
many scientific principles described in this guidance may also apply to
these products.
    This guidance specifically discusses several areas in which, due to
the unique nature of botanical drugs, the Agency finds it appropriate
to apply regulatory policies that differ from those applied to
nonbotanical drugs, such as synthetic, semi-synthetic, or otherwise
highly purified or chemically modified drugs, including antibiotics
derived from microorganisms. Because this guidance focuses on
considerations unique to botanical drugs, policies and recommendations
applicable to both botanical and nonbotanical drugs are generally not
covered in this document.
    In the Federal Register of August 17, 2015 (80 FR 49240), FDA
issued and sought comment on a draft guidance that revised the final
guidance for industry ``Botanical Drug Products'' issued in June 2004.
This guidance finalizes the August 2015 draft guidance ``Botanical Drug
Development'' and replaces the June 2004 final guidance. The June 2004
final guidance, August 2015 draft guidance, and related public comments
are publicly available in Docket No. FDA-2000-D-0103. The general
approach to botanical drug development has remained unchanged since
2004; however, based on improved understanding of botanical drugs and
experience acquired in the reviews of NDAs and INDs for these drugs,
specific recommendations have been modified and new sections have been
added to this guidance to better address late-phase development and NDA
submission for botanical drugs. This guidance also addresses the minor
comments received from stakeholders on the 2015 draft guidance and
provides clarity on the application of the fixed-dose drug combination
rule to botanicals.
    This guidance is being issued consistent with FDA's good guidance
practices regulation (21 CFR 10.115). The guidance represents the
current thinking of FDA on botanical drug development. 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.

II. The Paperwork Reduction Act of 1995

    This guidance refers to previously approved collections of
information found in FDA regulations. These collections of information
are subject to review by the Office of Management and Budget (OMB)
under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520). The
guidance explains the circumstances under which FDA regulations require
approval of an NDA for marketing a botanical drug product and when such
a product may be marketed under an OTC drug monograph. The regulations
governing the preparation and submission of an NDA are in part 314 (21
CFR part 314), and the guidance does not contain any recommendations
that exceed the requirements of these regulations. FDA has estimated
the information collection requirements resulting from the preparation
and submission of an NDA, and OMB has approved the burden under OMB
control number 0910-0001. FDA anticipates that any NDAs submitted for
botanical drug products would be included under the burden estimates
approved by OMB for part 314.
    The regulations on the procedures for classifying OTC drugs as
generally recognized as safe and effective and not misbranded, and for
establishing OTC drug monographs, are set forth in Sec.  330.10 (21 CFR
330.10). FDA believes that any botanical drug products that may be
eligible for inclusion in an OTC drug monograph under current Sec.
330.10 have already been or are presently being considered for such
inclusion.
    The guidance also provides scientific and regulatory guidance to
sponsors on conducting clinical investigations of botanical drugs. The
regulations governing the preparation and submission of INDs are in
part 312 (21 CFR part 312). The guidance does not

contain any recommendations that exceed the requirements in those
regulations. FDA has estimated the information collection requirements
resulting from the preparation and submission of an IND under part 312,
and OMB has approved the reporting and recordkeeping burden under OMB
control number 0910-0014.

III. Electronic Access

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

    Dated: December 23, 2016.
Leslie Kux,
Associate Commissioner for Policy.
[FR Doc. 2016-31627 Filed 12-28-16; 8:45 am]
 BILLING CODE 4164-01-P


[Federal Register: November 6, 2008 (Volume 73, Number 216)]
[Notices]
[Page 66096]
[DOCID:fr06no08-88]

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DEPARTMENT OF TRANSPORTATION

Federal Railroad Administration

Agency Request for Emergency Processing of Collections of
Information Associated with Today's Publication of Solicitation of
Applications and Notice of Funding Availability (NOFA)

AGENCY: Federal Railroad Administration, DOT.

ACTION: Notice.

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SUMMARY: The Federal Railroad Administration (FRA) hereby gives notice
that it has submitted the following information collection request
(ICR) to the Office of Management and Budget (OMB) for Emergency
Processing under the Paperwork Reduction Act of 1995 (Pub. L. 104-13,
44 U.S.C. 3501 et seq.). FRA requests that OMB authorize the collection
of information identified below on or before November 21, 2008, for 180
days after the date of approval by OMB. A copy of this ICR, with
applicable supporting documentation, may be obtained by calling FRA's
Clearance Officers, Mr. Robert Brogan (tel.<PHONE_NUMBER>) or Ms.
Nakia Jackson (tel.<PHONE_NUMBER>). These numbers are not toll-free. A
copy of this ICR may also be obtained electronically by contacting Mr.
Brogan at<EMAIL_ADDRESS>or by contacting Ms. Jackson at
<EMAIL_ADDRESS>Comments and questions about the ICR identified
below should be directed to the Office of Information and Regulatory
Affairs (OIRA), Attn: FRA OMB Desk Officer, 725 17th St., NW.,
Washington, DC 20503. Comments and questions about the ICR identified
below may also be transmitted electronically to OIRA at oira_
<EMAIL_ADDRESS>
DATES: Comments should be submitted as soon as possible upon
publication of this notice in the Federal Register.
    Title: Notice of Funding Availability and Solicitation of
Applications for Grants under the Railroad Rehabilitation and Repair
Grant Program.
    OMB Control Number: 2130-New.
    Frequency: One-time.
    Affected Public: 32 States.
    Form(s): SF-424.
    Other Instruments: Collection of Information Associated with the
NOFA Published in Today's Federal Register.
    Estimated Total Annual Number of Responses: 10.0 Grant Applications
(Paper/Electronic).
    Estimated Total Annual Burden Hours: 4,875 hours.
    Abstract: On September 30, 2008, President Bush signed Public Law
110-329, The Consolidated Security, Disaster Assistance, and Continuing
Appropriations Act, 2009. As part of this Act, Congress provided $20
million in disaster relief funds to FRA to award to States in one or
more grants for eligible projects related to repair and rehabilitation
of Class II and Class III railroad infrastructure damaged by
hurricanes, floods, and other natural disasters in counties for which
the President declared a major disaster under title IV of the Robert T.
Stafford Disaster relief and Emergency Assistance Act of 1974. These
funds are available for rehabilitation and repairs of railroad right-
of-way, bridges, signals, and other infrastructure which are part of
the general railroad system of transportation and primarily used by
railroads to move freight traffic. The Secretary may retain up to one-
half of 1 percent of these funds for the oversight of the design and
implementation of projects funded by grants under this Program. Funds
provided under this grant program may constitute no more than 80
percent of the total cost of a selected project, with the remaining
cost funded from other sources. The funding provided under these grants
will be made available to grantees on a reimbursement basis. FRA
anticipates awarding grants to multiple eligible participants. FRA may
choose to award a grant or grants within the available funds in any
amount. Funding made available through grants provided under this
program, together with funding from other sources that is committed by
a grantee as part of a grant agreement, must be sufficient to complete
the funded project and achieve the anticipated rehabilitation and
repairs to Class II and Class IIII railroads. FRA will begin accepting
grant applications 10 days after publication of this Federal Register
notice. Applications may be submitted until the earlier of December 31,
2008, or the date on which all available funds will have been committed
under this program.

    Authority: 44 U.S.C. 3501-3520.

    Issued in Washington, DC on November 3, 2008.
D.J. Stadtler,
Director, Office of Financial Management, Federal Railroad
Administration.
 [FR Doc. E8-26477 Filed 11-5-08; 8:45 am]

BILLING CODE 4910-06-P


[Federal Register Volume 76, Number 89 (Monday, May 9, 2011)]
[Proposed Rules]
[Pages 26679-26681]
[FR Doc No: 2011-11215]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R03-OAR-2010-0770; FRL-9303-1]

Approval and Promulgation of Air Quality Implementation Plans;
Delaware; Requirements for Preconstruction Review, Prevention of
Significant Deterioration

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: EPA is proposing to approve a State Implementation Plan (SIP)
revision submitted by the Delaware Department of Natural Resources and
Environmental Control on April 1, 2010. This revision will establish
nitrogen oxides (NOX) as a precursor to ozone within the
Delaware SIP. This action is being taken under the Clean Air Act (CAA).

DATES: Written comments must be received on or before June 8, 2011.

ADDRESSES: Submit your comments, identified by Docket ID Number EPA-
R03-OAR-2010-0770 by one of the following methods:
    A. http://www.regulations.gov. Follow the on-line instructions for
submitting comments.
    B. E-mail<EMAIL_ADDRESS>    C. Mail: EPA-R03-OAR-2010-0770, Kathleen Cox, Associate Director,
Office of Permits and Air Toxics, Mailcode 3AP10, U.S. Environmental
Protection Agency, Region III, 1650 Arch Street, Philadelphia,
Pennsylvania 19103.
    D. Hand Delivery: At the previously-listed EPA Region III address.
Such deliveries are only accepted during the Docket's normal hours of
operation, and special arrangements should be made for deliveries of
boxed information.
    Instructions: Direct your comments to Docket ID No. EPA-R03-OAR-
2010-0770. EPA's policy is that all comments received will be included
in the public docket without change, and may be made available online
at http://www.regulations.gov, including any personal information
provided, unless the comment includes information claimed to be
Confidential Business Information (CBI) or other information whose
disclosure is restricted by statute. Do not submit information that you
consider to be CBI or otherwise protected through http://www.regulations.gov or e-mail. The www.regulations.gov Web site is an
``anonymous access'' system, which means EPA will not know your
identity or contact information unless you provide it in the body of
your comment. If you send an e-mail comment directly to EPA without
going through http://www.regulations.gov, your e-mail address will be
automatically captured and included as part of the comment that is
placed in the public docket and made available on the Internet. If you
submit an electronic comment, EPA recommends that you include your name
and other contact information in the body of your comment and with any
disk or CD-ROM you submit. If EPA cannot read your comment due to
technical difficulties and cannot contact you for clarification, EPA
may not be able to consider your comment. Electronic files should avoid
the use of special characters, any form of encryption, and be free of
any defects or viruses.
    Docket: All documents in the electronic docket are listed in the
http://www.regulations.gov index. Although listed in the index, some
information is not publicly available, i.e., CBI or other information
whose disclosure is restricted by statute. Certain other material, such
as copyrighted material, is not placed on the Internet and will be
publicly

available only in hard copy form. Publicly available docket materials
are available either electronically in http://www.regulations.gov or in
hard copy during normal business hours at the Air Protection Division,
U.S. Environmental Protection Agency, Region III, 1650 Arch Street,
Philadelphia, Pennsylvania 19103. Copies of the State submittal are
available at the Delaware Department of Natural Resources and
Environmental Control, 89 Kings Highway, P.O. Box 1401, Dover, Delaware
19903.

FOR FURTHER INFORMATION CONTACT: Sharon McCauley,<PHONE_NUMBER>, or by
e-mail at<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: Throughout this document, whenever ``we,''
``us,'' or ``our'' is used, we mean EPA. On April 1, 2010, Delaware
submitted a revision to its SIP for changes noted in Regulation 1125,
Requirements for Preconstruction Review, Prevention of Significant
Deterioration (PSD) found in section 3.0 of Regulation 1125 (Regulation
1125, section 3.0).

I. Background

    This SIP revision governs the permits for constructing and
significantly modifying major stationary sources of air pollutants in
PSD areas located in Delaware. This regulatory revision was made
effective as a legislative rule in Delaware on April 11, 2010. This
regulatory revision became effective as a legislative rule in the State
on April 11, 2010 and can be found in Regulation 1125, section 3.0.
This SIP revision, as proposed, will only replace the current
regulations found in Regulation 1125, section 3.0 which establish
NOX as a precursor to ozone, but will keep intact the
formally approved Delaware SIP increments for NOX found in
the Federal Register action for Delaware dated July 27, 1993 (58 FR
40065).
    Delaware's proposed SIP submission addresses changes needed in the
part C PSD permit program. This SIP submission also corrects
deficiencies identified by EPA in the March 27, 2008 Federal Register
action entitled, ``Completeness Findings for Section 110(a) State
Implementation Plans for the 8-hour Ozone National Ambient Air Quality
Standards (1997 Ozone NAAQS)'' (73 FR 16205). EPA's proposed approval
of this SIP submission addresses Delaware's compliance with the portion
of CAA Section 110(a)(2)(C) & (J) relating to the CAA's part C permit
program for the 1997 Ozone NAAQS, because this proposed approval would
approve regulating NOX as a precursor to ozone in Delaware's
SIP in accordance with the Federal Register action dated November 29,
2005 (70 FR 71612) that finalized NOX as a precursor for
ozone regulations set forth at 40 CFR 51.166 and in 40 CFR 52.21.
    We have determined that the current amendments to Delaware's PSD
permit program at Regulation 1125, section 3.0, as submitted on April
1, 2010, meet the minimum requirements of 40 CFR 51.166 and the CAA.
This SIP proposal is being proposed as a full approvable revision to
the Delaware SIP. No other changes to the currently approved SIP are
being proposed for approval at this time.

II. Summary of SIP Revision

    This rule establishes a state construction permit program
consistent with the federal CAA's Title I program and implementing
regulations at 40 CFR 51.166, ``Prevention of Significant Deterioration
of Air Quality.'' Regulation 1125, section 3.0 is part of the SIP and
sets forth the criteria and procedures for major stationary sources to
obtain a permit to construct, operate and/or modify a major stationary
source.
    As required by 40 CFR Part 51, Subpart I--``Review of New Sources
and Modifications,'' this rule adopts criteria and procedures for the
prevention of significant deterioration of air quality that are
consistent with the governing federal regulation at 40 CFR 51.166.
Promulgation of this rule by the Legislature was necessary for Delaware
to fulfill its responsibilities under 40 CFR Part 51 and the CAA, as
amended. Revisions to the Delaware rule simply added new references to
include NOX as a precursor to ozone to comport with federal
counterpart language. The Delaware Department of Natural Resources and
Environmental Control has now submitted a final rule Regulation 1125,
section 3.0 as a proposed revision to the SIP. We are now proposing to
approve NOX as a precursor to ozone in the Delaware SIP.

III. Proposed Action

    Delaware's proposed SIP submission addresses changes needed to be
equivalent to the CAA's part C PSD permit program. This SIP submission
also corrects deficiencies identified by EPA in the March 27, 2008
Federal Register action entitled, ``Completeness Findings for Section
110(a) State Implementation Plans for the 8-hour Ozone National Ambient
Air Quality Standards (1997 Ozone NAAQS)'' (73 FR 16205). EPA's
proposed approval of this SIP submission addresses Delaware's
compliance with the portion of CAA Section 110(a)(2)(C) & (J) relating
to the CAA's part C permit program for the 1997 Ozone NAAQS, because
this proposal would approve regulating NOX as a precursor to
ozone in Delaware's SIP in accordance with the Federal Register action
dated November 29, 2005 (70 FR 71612) that finalized NOX as
a precursor for ozone regulations set forth at 40 CFR 51.166 and in 40
CFR 52.21.
    EPA is proposing to approve this Delaware SIP revision for the
changes made to Regulation 1125, section 3.0, as was submitted on April
1, 2010. EPA is soliciting public comments on the issues discussed in
this document. These comments will be considered before taking final
action.

IV. Statutory and Executive Order Reviews

    Under the CAA, the Administrator is required to approve a SIP
submission that complies with the provisions of the Act and applicable
Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in
reviewing SIP submissions, EPA's role is to approve state choices,
provided that they meet the criteria of the CAA. Accordingly, this
action merely proposes to approve state law as meeting Federal
requirements and does not impose additional requirements beyond those
imposed by state law. For that reason, this proposed action:
     Is not a ``significant regulatory action'' subject to
review by the Office of Management and Budget under Executive Order
12866 (58 FR 51735, October 4, 1993);
     Does not impose an information collection burden under the
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
     Is certified as not having a significant economic impact
on a substantial number of small entities under the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.);
     Does not contain any unfunded mandate or significantly or
uniquely affect small governments, as described in the Unfunded
Mandates Reform Act of 1995 (Pub. L. 104-4);
     Does not have Federalism implications as specified in
Executive Order 13132 (64 FR 43255, August 10, 1999);
     Is not an economically significant regulatory action based
on health or safety risks subject to Executive Order 13045 (62 FR
19885, April 23, 1997);
     Is not a significant regulatory action subject to
Executive Order 13211 (66 FR 28355, May 22, 2001);
     Is not subject to requirements of Section 12(d) of the
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272
note) because

application of those requirements would be inconsistent with the CAA;
and
     Does not provide EPA with the discretionary authority to
address, as appropriate, disproportionate human health or environmental
effects, using practicable and legally permissible methods, under
Executive Order 12898 (59 FR 7629, February 16, 1994).
    This proposed rule, for the inclusion of NOX as a
precursor to ozone in Delaware for the PSD program, does not have
tribal implications as specified by Executive Order 13175 (65 FR 67249,
November 9, 2000), because the SIP is not approved to apply in Indian
country located in the state, and will not impose substantial direct
costs on tribal governments or preempt tribal law.

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Intergovernmental
relations, Nitrogen dioxide, Ozone, Reporting and recordkeeping
requirements.

    Authority: 42 U.S.C. 7401 et seq.

    Dated: April 20, 2011.
W.C. Early,
Acting Regional Administrator, Region III.
[FR Doc. 2011-11215 Filed 5-6-11; 8:45 am]
BILLING CODE 6560-50-P


[Federal Register Volume 80, Number 102 (Thursday, May 28, 2015)]
[Notices]
[Pages 30519-30525]
[FR Doc No: 2015-12829]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75023; File No. SR-NYSEArca-2014-100]

Self-Regulatory Organizations; NYSE Arca, Inc.; Order Granting
Approval of Proposed Rule Change, as Modified by Amendment Nos. 1 and 2
Thereto, Relating to the Listing and Trading of Shares of the SPDR SSgA
Global Managed Volatility ETF Under NYSE Arca Equities Rule 8.600

May 21, 2015.

I. Introduction

    On September 5, 2014, NYSE Arca, Inc. (``Exchange'') filed with the
Securities and Exchange Commission (``Commission''), pursuant to
Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\
and Rule 19b-4 thereunder,\2\ a proposed rule change to list and trade
shares (``Shares'') of the SPDR SSgA Global Managed Volatility ETF
(``Fund'') under NYSE Arca Equities Rule 8.600, which governs the
listing and trading of Managed Fund Shares. The proposed rule change
was published for comment in the Federal Register on September 24,
2014.\3\ On November 4, 2014, pursuant to Section 19(b)(2) of the
Act,\4\ the Commission designated a longer period within which to
approve the proposed rule change, disapprove the proposed rule change,
or institute proceedings to determine whether to disapprove the
proposed rule change.\5\
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 73141 (Sept. 18,
2014), 79 FR 57161 (``Notice'').
    \4\ 15 U.S.C. 78s(b)(2).
    \5\ See Securities Exchange Act Release No. 73515, 79 FR 66758
(Nov. 10, 2014). The Commission designated a longer period within
which to take action on the proposed rule change and designated
December 23, 2014, as the date by which it should approve,
disapprove, or institute proceedings to determine whether to
disapprove the proposed rule change.
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    On December 22, 2014, the Commission instituted proceedings under
Section 19(b)(2)(B) of the Act \6\ to determine whether to approve or
disapprove the proposed rule change.\7\ In the Order Instituting
Proceedings, the

Commission solicited responses to specified matters related to the
proposal.\8\ The Commission received no comment letters on the proposed
rule change.
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    \6\ 15 U.S.C. 78s(b)(2)(B).
    \7\ See Securities Exchange Act Release No. 73914, 79 FR 78524
(Dec. 30, 2014) (``Order Instituting Proceedings''). Specifically,
the Commission instituted proceedings to allow for additional
analysis of the proposed rule change's consistency with Section
6(b)(5) of the Act, which requires, among other things, that the
rules of a national securities exchange be ``designed to prevent
fraudulent and manipulative acts and practices, to promote just and
equitable principles of trade,'' and ``to protect investors and the
public interest.'' See id., 79 FR at 78530.
    \8\ See id. (soliciting public comment on the statements of the
Exchange contained in the Notice, including statements made in
connection with information sharing procedures with respect to
certain non-U.S. equity security holdings and the Exchange's
arguments regarding the applicability of the definition of
``Actively-Traded Securities'' under Regulation M (``Reg M'')).
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    The Exchange subsequently filed Amendment No. 1 to the proposed
rule change on January 20, 2015.\9\ On March 20, 2015, pursuant to
Section 19(b)(2) of the Act,\10\ the Commission designated a longer
period for Commission action on proceedings to determine whether to
disapprove the proposed rule change.\11\ On April 7, 2015, the Exchange
filed Amendment No. 2 to the proposed rule change.\12\ The Commission
published a Notice of Filing of Amendment Nos. 1 and 2 to the proposed
rule change for comment in the Federal Register on April 21, 2014.\13\
The Commission received no comments on the proposal, as modified by
Amendment Nos. 1 and 2 thereto.
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    \9\ The text of Amendment No. 1, which amends and replaces the
proposed rule change in its entirety, is available on the Exchange's
Web site, at the principal office of the Exchange, and at the
Commission's Public Reference Room. The text of Amendment No. 1 to
the proposed rule change is also available on the Commission's Web
site. See Letter from Martha Redding, Senior Counsel and Assistant
Secretary, New York Stock Exchange, to Kevin M. O'Neill, Deputy
Secretary, Commission (Jan. 22, 2015), available at http://www.sec.gov/comments/sr-nysearca-2014-100/nysearca2014100-1.pdf.
    \10\ 15 U.S.C. 78s(b)(2).
    \11\ See Securities Exchange Act Release No. 74559, 80 FR 16047
(Mar. 26, 2015). The Commission designated a longer period within
which to take action on the proposed rule change and designated May
7, 2015 as the date by which it should determine whether to
disapprove the proposed rule change. See also Securities Exchange
Act Release No. 74559A (Apr. 13, 2015) (correcting the date by which
the Commission must take action on proceedings to determine whether
to disapprove the proposed rule change to May 22, 2015).
    \12\ See Amendment No. 2, available at http://www.sec.gov/comments/sr-nysearca-2014-100/nysearca2014100-2.pdf.
    \13\ See Securities Exchange Act Release No. 74729 (Apr. 15,
2015), 80 FR 22242.
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    This order grants approval of the proposed rule change, as modified
by Amendment Nos. 1 and 2 thereto.

II. Description of the Proposal, as Modified by Amendment Nos. 1 and 2
Thereto

    NYSE Arca proposes to list and trade Shares of the Fund under NYSE
Arca Equities Rule 8.600, which governs the listing and trading of
Managed Fund Shares on the Exchange. The Shares will be offered by SSgA
Active ETF Trust (``Trust''), which is organized as a Massachusetts
business trust and is registered with the Commission as an open-end
management investment company.\14\ SSgA Funds Management, Inc. will
serve as the investment adviser to the Fund (``Adviser'').\15\ State
Street Global Markets, LLC will be the principal underwriter and
distributor of the Fund's Shares, and State Street Bank and Trust
Company (``Custodian'') will serve as the administrator, custodian, and
transfer agent for the Fund. The Exchange has made the following
representations and statements in describing the Fund and its
investment strategy, including the Fund's portfolio holdings and
investment restrictions.\16\
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    \14\ The Trust is registered under the Investment Company Act of
1940 (``1940 Act''). According to the Exchange, on September 20,
2012, the Trust filed with the Commission an amendment to its
registration statement on Form N-1A under the Securities Act of 1933
(``Securities Act'') and under the 1940 Act relating to the Fund
(File Nos. 333-173276 and 811-22542) (``Registration Statement'').
In addition, the Exchange states that the Trust has obtained from
the Commission certain exemptive relief under the 1940 Act. See
Investment Company Act Release No. 29524 (Dec. 13, 2010) (File No.
812-13487).
    \15\ The Exchange represents that the Adviser is not a
registered broker-dealer but is affiliated with a broker-dealer and
has implemented a ``fire wall'' with respect to such broker-dealer
regarding access to information concerning the composition of or
changes to the Fund's portfolio. The Exchange further represents
that, in the event (a) the Adviser or any sub-adviser becomes
registered as a broker-dealer or newly affiliated with a broker-
dealer, or (b) any new adviser or sub-adviser is a registered
broker-dealer or becomes affiliated with a broker-dealer, the
Adviser or any new adviser or sub-adviser, as the case may be, will
implement a fire wall with respect to its relevant personnel or
broker-dealer affiliate, as applicable, regarding access to
information concerning the composition of or changes to the
portfolio, and will be subject to procedures designed to prevent the
use and dissemination of material, non-public information regarding
the portfolio.
    \16\ The Commission notes that additional information regarding
the Fund, the Trust, and the Shares, including investment
strategies, risks, creation and redemption procedures, fees,
portfolio holdings disclosure policies, calculation of net asset
value (``NAV''), distributions, and taxes, among other things, can
be found in Amendment No. 1 and the Registration Statement, as
applicable. See Amendment No. 1 and Registration Statement, supra
notes 9 and 14, respectively.
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A. The Exchange's Description of the Fund's Principal Investment
Policies

    According to the Exchange, the Fund will seek to provide
competitive, long-term returns while maintaining low, long-term
volatility relative to the broad global market. Under normal
circumstances,\17\ the Fund will invest all of its assets in the SSgA
Global Managed Volatility Portfolio (``Portfolio''), a separate series
of the SSgA Master Trust with an identical investment objective as the
Fund. As a result, the Fund will invest indirectly through the
Portfolio.\18\
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    \17\ With respect to the Fund, the term ``under normal
circumstances'' includes, but is not limited to, the absence of
extreme volatility or trading halts in the equity markets or the
financial markets generally; operational issues causing
dissemination of inaccurate market information; or force majeure
type events such as systems failure, natural or man-made disaster,
act of God, armed conflict, act of terrorism, riot or labor
disruption, or any similar intervening circumstance.
    \18\ According to the Exchange, the Fund is intended to be
managed in a ``master-feeder'' structure, under which the Fund will
invest substantially all of its assets in the Portfolio (i.e., a
``master fund''), which is a separate 1940 Act-registered mutual
fund that has an identical investment objective. As a result, the
Fund (i.e., the ``feeder fund'') will have an indirect interest in
all of the securities owned by the corresponding Portfolio. Because
of this indirect interest, the Fund's investment returns should be
the same as those of the Portfolio, adjusted for the expenses of the
Fund. The Exchange represents that, in general, the Portfolio, which
will be where investments will be held, will primarily consist of
equity securities and, to a lesser extent, other investments as
described under ``Non-Principal Investment Policies'' below. The
Fund will invest in shares of the Portfolio and will not invest in
investments described under ``Non-Principal Investment Policies,''
but may be exposed to such investments by means of the Fund's
investment in shares of the Portfolio. The Exchange states that in
extraordinary instances, the Fund reserves the right to make direct
investments in equity securities and other investments.
---------------------------------------------------------------------------

    According to the Exchange, the Adviser will utilize a proprietary
quantitative investment process to select a portfolio of exchange-
listed-and-traded equity securities that the Adviser believes will
exhibit low volatility and provide competitive, long-term returns
relative to the broad global market.\19\ The Portfolio will invest its
assets in both U.S. and foreign investments. The Portfolio will
generally invest at least 80% of its net assets in global equity
securities and at least 30% of its net assets in global equity
securities of issuers economically tied to countries other than the
United States. The Portfolio will generally hold securities of issuers
economically tied to at least three countries, including the United
States.\20\ The Portfolio may purchase

exchange-listed-and-traded common stocks and preferred securities of
U.S. and foreign corporations (referred to herein as ``non-U.S. equity
securities'').\21\ Under normal circumstances, the Portfolio will
include a minimum of 20 exchange-listed-and-traded equity securities.
The Adviser expects to favor securities with low exposure to market
risk factors and low security-specific risk. The Adviser will consider
market risk factors to include, among others, a security's size,
momentum, value, liquidity, leverage, and growth. While the Adviser
will attempt to manage the Fund's volatility exposure to stabilize
performance, there can be no guarantee that the Fund will reach its
target volatility. Additionally, the Adviser will implement risk
constraints at the security, industry, size exposure, and sector
levels. Through this quantitative process of security selection and
portfolio diversification, the Adviser expects that the Portfolio will
be subject to a low level of absolute risk (as defined by standard
deviation of returns) and thus should exhibit low volatility over the
long term.
---------------------------------------------------------------------------

    \19\ Volatility is a statistical measurement of the magnitude of
up and down fluctuations in the value of a financial instrument or
index over time. Volatility may result in rapid and dramatic price
swings.
    \20\ Investments in common stock of foreign corporations may
also be in the form of American Depositary Receipts (``ADRs''),
Global Depositary Receipts (``GDRs''), and European Depositary
Receipts (``EDRs'') (collectively ``Depositary Receipts'').
Depositary Receipts are receipts, typically issued by a bank or
trust company, that evidence ownership of underlying securities
issued by a foreign corporation. For ADRs, the depository is
typically a U.S. financial institution, and the underlying
securities are issued by a foreign issuer. For other Depositary
Receipts, the depository may be a foreign or a U.S. entity, and the
underlying securities may have a foreign or a U.S. issuer.
Depositary Receipts will not necessarily be denominated in the same
currency as their underlying securities. Generally, ADRs, in
registered form, are designed for use in the U.S. securities market,
and EDRs, in bearer form, are designated for use in European
securities markets. GDRs are tradable both in the United States and
in Europe and are designed for use throughout the world. The
Portfolio may invest in unsponsored Depositary Receipts. The issuers
of unsponsored Depositary Receipts are not obligated to disclose
material information in the United States, and, therefore, there may
be less information available regarding such issuers, and there may
not be a correlation between such information and the market value
of the Depositary Receipts. Unsponsored Depositary Receipts will not
exceed 10% of the Fund's net assets.
    \21\ For purposes of this filing, the term ``non-U.S. equity
securities'' includes the following: Common stocks and preferred
securities of foreign corporations; non-U.S. exchange-traded real
estate investment trusts (``REITs''), as referenced below; and
Depositary Receipts (excluding Depositary Receipts that are
registered under the Act).
---------------------------------------------------------------------------

    The Adviser will manage the investments of the Portfolio. Under the
master-feeder arrangement, and pursuant to the investment advisory
agreement between the Adviser and the Trust, investment advisory fees
charged at the Portfolio level will be deducted from the advisory fees
charged at the Fund level. This arrangement avoids a ``layering'' of
fees, i.e., the Fund's total annual operating expenses would be no
higher as a result of investing in a master-feeder arrangement than
they would be if the Fund pursued its investment objectives directly.
In addition, the Fund may discontinue investing through the master-
feeder arrangement and pursue its investment objectives directly if the
Fund's Board of Trustees (``Board'') determines that doing so would be
in the best interests of shareholders.
    Under normal circumstances, the non-U.S. equity securities in the
Fund's portfolio will meet the following criteria at time of purchase:
(1) Non-U.S. equity securities each shall have a minimum market value
of at least $100 million; (2) non-U.S. equity securities each shall
have a minimum global monthly trading volume of 250,000 shares, or
minimum global notional volume traded per month of $25,000,000,
averaged over the last six months; (3) the most heavily weighted non-
U.S. equity security shall not exceed 25% of the weight of the Fund's
entire portfolio, and, to the extent applicable, the five most heavily
weighted non-U.S. equity securities shall not exceed 60% of the weight
of the Fund's entire portfolio; and (4) each non-U.S. equity security
shall be listed and traded on an exchange that has last-sale
reporting.\22\
---------------------------------------------------------------------------

    \22\ These criteria are similar to certain ``generic'' listing
criteria in NYSE Arca Equities Rule 5.2(j)(3), Commentary .01(a)(B),
which relate to criteria applicable to an index or portfolio of U.S.
and non-U.S. stocks underlying a series of Investment Company Units
to be listed and traded on the Exchange pursuant to Rule 19b-4(e)
under the Act.
---------------------------------------------------------------------------

    The Portfolio and Fund do not intend to concentrate their
investments in any particular industry. The Portfolio and Fund will
look to the Global Industry Classification Standard (``GICS'') Level 3
(Industries) in making industry determinations.\23\
---------------------------------------------------------------------------

    \23\ GICS classifications can be found on the Standard & Poor's
Web site at http://www.us.spindices.com/search/?query=gics+map.
---------------------------------------------------------------------------

    The Portfolio may invest in exchange-traded preferred securities.
Preferred securities pay fixed or adjustable rate dividends to
investors and have ``preference'' over common stock in the payment of
dividends and the liquidation of a company's assets.

B. The Exchange's Description of the Fund's Non-Principal Investment
Policies

    In certain situations or market conditions, in order to take
temporary defensive positions, the Fund may (either directly or through
the Portfolio) temporarily depart from its normal investment policies
and strategies, provided that the alternative is consistent with the
Fund's investment objective and is in the best interest of the Fund.
For example, the Fund may hold a higher than normal proportion of its
assets in cash in times of extreme market stress. According to the
Exchange, in addition to the principal investments described above, the
Portfolio may invest its remaining net assets in other investments, as
described below. The investment practices of the Portfolio are the same
in all material respects as those of the Fund.
    The Portfolio may invest in U.S. Government obligations \24\ and
U.S.-registered, dollar-denominated bonds of foreign corporations,
governments, agencies, and supra-national entities. The Portfolio also
may invest in restricted securities.\25\
---------------------------------------------------------------------------

    \24\ U.S. Government obligations are a type of bond. U.S.
Government obligations include securities issued or guaranteed as to
principal and interest by the U.S. Government or its agencies or
instrumentalities. One type of U.S. Government obligation, U.S.
Treasury obligations, are backed by the full faith and credit of the
U.S. Treasury and differ only in their interest rates, maturities,
and times of issuance. U.S. Treasury bills have initial maturities
of one-year or less; U.S. Treasury notes have initial maturities of
one to ten years; and U.S. Treasury bonds generally have initial
maturities of greater than ten years. Other U.S. Government
obligations are issued or guaranteed by agencies or
instrumentalities of the U.S. Government including, but not limited
to, the Federal National Mortgage Association, the Government
National Mortgage Association (``Ginnie Mae''), the Small Business
Administration, the Federal Farm Credit Administration, the Federal
Home Loan Mortgage Corporation, the Federal Home Loan Banks, Banks
for Cooperatives (including the Central Bank for Cooperatives), the
Federal Land Banks, the Federal Intermediate Credit Banks, the
Tennessee Valley Authority, the Export-Import Bank of the United
States, the Commodity Credit Corporation, the Federal Financing
Bank, the National Credit Union Administration, and the Federal
Agricultural Mortgage Corporation. Some obligations issued or
guaranteed by U.S. Government agencies or instrumentalities,
including, for example, Ginnie Mae pass-through certificates, are
supported by the full faith and credit of the U.S. Treasury.
    \25\ Restricted securities are securities that are not
registered under the Securities Act, but which can be offered and
sold to ``qualified institutional buyers'' under Rule 144A under the
Securities Act. The Board has delegated to the Adviser the
responsibility for determining the liquidity of Rule 144A restricted
securities that the Portfolio may invest in. In reaching liquidity
decisions, the Adviser may consider the following factors: the
frequency of trades and quotes for the security; the number of
dealers wishing to purchase or sell the security and the number of
other potential purchasers; dealer undertakings to make a market in
the security; and the nature of the security and the nature of the
marketplace in which it trades (e.g., the time needed to dispose of
the security, the method of soliciting offers, and the mechanics of
transfer).
---------------------------------------------------------------------------

    The Portfolio may conduct foreign currency transactions on a spot
(i.e., cash) or forward basis (i.e., by entering into forward contracts
to purchase or sell foreign currencies).
    The Portfolio may invest in exchange-traded products (``ETPs''),
including exchange-traded funds (``ETFs'') registered under the 1940
Act, exchange-traded commodity trusts, and exchange-traded notes.\26\
The Portfolio

also may invest in the securities of other investment companies,
including money market funds and exchange-traded closed-end funds,
subject to applicable limitations under Section 12(d)(1) of the 1940
Act.\27\ The Portfolio may invest up to 25% of its total assets in one
or more ETPs that are qualified publicly traded partnerships
(``QPTPs'') \28\ and whose principal activities are the buying and
selling of commodities or options, futures, or forwards with respect to
commodities. The Portfolio may invest in exchange-traded shares of
REITs.
---------------------------------------------------------------------------

    \26\ For purposes of this filing, ETPs include Investment
Company Units (as described in NYSE Arca Equities Rule 5.2(j)(3));
Index-Linked Securities (as described in NYSE Arca Equities Rule
5.2(j)(6)); Portfolio Depositary Receipts (as described in NYSE Arca
Equities Rule 8.100); Trust Issued Receipts (as described in NYSE
Arca Equities Rule 8.200); Commodity-Based Trust Shares (as
described in NYSE Arca Equities Rule 8.201); Currency Trust Shares
(as described in NYSE Arca Equities Rule 8.202); Commodity Index
Trust Shares (as described in NYSE Arca Equities Rule 8.203); and
Managed Fund Shares (as described in NYSE Arca Equities Rule 8.600).
The Portfolio may invest in ETFs managed by the Adviser. The Adviser
may receive management or other fees from the ETPs in which the
Portfolio or Fund may invest, as well as a management fee for
managing the Fund. The ETPs all will be listed and traded in the
U.S. on national securities exchanges.
    \27\ The Fund will invest substantially all of its assets in the
Portfolio. The Exchange states that, pursuant to Section 12(d)(1) of
the 1940 Act, a fund may invest in the securities of another
investment company (the ``acquired company'') provided that the
fund, immediately after such purchase or acquisition, does not own
in the aggregate: (i) More than 3% of the total outstanding voting
stock of the acquired company; (ii) securities issued by the
acquired company having an aggregate value in excess of 5% of the
value of the total assets of the fund; (iii) securities issued by
the acquired company and all other investment companies (other than
Treasury stock of the fund) having an aggregate value in excess of
10% of the value of the total assets of the fund; or (iv) in the
case of investment in a closed-end fund, more than 10% of the total
outstanding voting stock of the acquired company. The Fund may also
invest in the securities of other investment companies if such
securities are the only investment securities held by the Fund, such
as through a master-feeder arrangement. The Fund currently will
pursue its investment objective through such an arrangement. To the
extent allowed by law, regulation, the Fund's investment
restrictions, and the Trust's exemptive relief, the Fund may invest
its assets in securities of investment companies that are money
market funds, including those advised by the Adviser or otherwise
affiliated with the Adviser, in excess of the limits discussed
above.
    \28\ A QPTP is an entity that is treated as a partnership for
federal income tax purposes, subject to certain requirements. If
such an ETP fails to qualify as a QPTP, the income generated from
the Portfolio's investment in the ETP may not comply with certain
income tests necessary for the Portfolio to qualify as a regulated
investment company under Subchapter M of the Internal Revenue Code.
---------------------------------------------------------------------------

    The Portfolio may invest in repurchase agreements with commercial
banks, brokers, or dealers to generate income from its excess cash
balances and to invest securities lending cash collateral.\29\ The
Portfolio may also enter into reverse repurchase agreements.\30\
---------------------------------------------------------------------------

    \29\ A repurchase agreement is an agreement under which a fund
acquires a financial instrument (e.g., a security issued by the U.S.
government or an agency thereof, a banker's acceptance, or a
certificate of deposit) from a seller, subject to resale to the
seller at an agreed upon price and date (normally, the next business
day). A repurchase agreement may be considered a loan collateralized
by securities. The resale price reflects an agreed upon interest
rate effective for the period the instrument is held by a fund and
is unrelated to the interest rate on the underlying instrument.
    \30\ Reverse repurchase agreements involve the sale of
securities with an agreement to repurchase the securities at an
agreed-upon price, date, and interest payment, and have the
characteristics of borrowing.
---------------------------------------------------------------------------

    In addition to repurchase agreements, the Portfolio may invest in
short-term instruments, including money market instruments (including
money market funds advised by the Adviser), cash, and cash equivalents,
on an ongoing basis to provide liquidity or for other reasons.\31\
---------------------------------------------------------------------------

    \31\ Money market instruments are generally short-term
investments that may include but are not limited to: (i) Shares of
money market funds; (ii) obligations issued or guaranteed by the
U.S. government, its agencies, or its instrumentalities (including
government-sponsored enterprises); (iii) negotiable certificates of
deposit, bankers' acceptances, fixed time deposits, and other
obligations of U.S. and foreign banks (including foreign branches)
and similar institutions; (iv) commercial paper rated at the date of
purchase ``Prime-1'' by Moody's or ``A-1'' by Standard & Poor's, or
if unrated, of comparable quality as determined by the Adviser; (v)
non-convertible corporate debt securities (e.g., bonds and
debentures) with remaining maturities at the date of purchase of not
more than 397 days and that satisfy the rating requirements set
forth in Rule 2a-7 under the 1940 Act; (vi) short-term U.S. dollar-
denominated obligations of foreign banks (including U.S. branches)
that, in the opinion of the Adviser, are of comparable quality to
obligations of U.S. banks which may be purchased by the Portfolio;
and (vii) variable rate demand notes.
---------------------------------------------------------------------------

C. The Exchange's Description of the Fund's Investment Restrictions

    According to the Exchange, the Fund may hold up to an aggregate
amount of 15% of its net assets in illiquid assets (calculated at the
time of investment), including Rule 144A securities deemed illiquid by
the Adviser. The Fund will monitor its portfolio liquidity on an
ongoing basis to determine whether, in light of current circumstances,
an adequate level of liquidity is being maintained, and will consider
taking appropriate steps in order to maintain adequate liquidity if,
through a change in values, net assets, or other circumstances, more
than 15% of the Fund's net assets are held in illiquid assets. Illiquid
assets include securities subject to contractual or other restrictions
on resale and other instruments that lack readily available markets as
determined in accordance with Commission staff guidance.
    The Exchange represents that the Portfolio and the Fund will be
classified as a ``non-diversified'' investment company under the 1940
Act. A non-diversified classification means that the Portfolio or Fund
is not limited by the 1940 Act with regard to the percentage of its
assets that may be invested in the securities of a single issuer. This
means that the Portfolio or Fund may invest a greater portion of its
assets in the securities of a single issuer than a diversified fund.
Although the Portfolio and Fund will be non-diversified for purposes of
the 1940 Act, the Portfolio and Fund intend to maintain the required
level of diversification and otherwise conduct its operations so as to
qualify as a ``regulated investment company'' for purposes of the
Internal Revenue Code of 1986.
    The Exchange represents that neither the Fund nor the Portfolio
will invest in options, futures contracts, or swap agreements. The
Exchange further represents that the Fund's and Portfolio's investments
will be consistent with the Fund's investment objective and will not be
used to enhance leverage.

III. Discussion and Commission Findings

    After careful review, the Commission finds that the Exchange's
proposal to list and trade the Shares is consistent with the Exchange
Act and the rules and regulations thereunder applicable to a national
securities exchange.\32\ In particular, the Commission finds that the
proposed rule change, as modified by Amendment Nos. 1 and 2 thereto, is
consistent with Section 6(b)(5) of the Exchange Act,\33\ which
requires, among other things, that the Exchange's rules be designed to
promote just and equitable principles of trade, 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.
---------------------------------------------------------------------------

    \32\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
    \33\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Commission also finds that the proposal to list and trade the
Shares on the Exchange is consistent with Section 11A(a)(1)(C)(iii) of
the Exchange Act,\34\ which sets forth the finding of Congress that it
is in the public interest and appropriate for the protection of
investors and the maintenance of fair and orderly markets to assure the
availability to brokers, dealers, and investors of information with
respect to quotations for and transactions in securities. Quotation and
last-sale information for the Shares will be available via the
Consolidated Tape Association (``CTA'') high-speed line. In addition,
the Indicative Optimized

Portfolio Value (``IOPV''),\35\ which is the Portfolio Indicative Value
as defined in NYSE Arca Equities Rule 8.600(c)(3), will be widely
disseminated at least every 15 seconds during the Exchange's Core
Trading Session by one or more major market data vendors.\36\ On each
business day, before commencement of trading in Shares in the Core
Trading Session on the Exchange, the Fund will disclose on its Web site
the Disclosed Portfolio that will form the basis for the Fund's
calculation of NAV at the end of the business day.\37\ In addition, a
basket composition file, which includes the security names and share
quantities required to be delivered in exchange for the Fund's Shares,
together with estimates and actual cash components, will be publicly
disseminated daily prior to the opening of the New York Stock Exchange
(``NYSE'') via the National Securities Clearing Corporation. The basket
represents one Creation Unit of the Fund.
---------------------------------------------------------------------------

    \34\ 15 U.S.C. 78k-1(a)(1)(C)(iii).
    \35\ The IOPV calculation will be an estimate of the value of
the Fund's NAV per Share using market data converted into U.S.
dollars at the current currency rates. The IOPV price will be based
on quotes and closing prices from the securities' local market and
may not reflect events that occur subsequent to the local market's
close. Premiums and discounts between the IOPV and the market price
of the Shares may occur. The IOPV should not be viewed as a ``real-
time'' update of the NAV per Share of the Fund, which will be
calculated only once a day.
    \36\ According to the Exchange, several major market data
vendors display and make widely available IOPVs taken from CTA or
other data feeds.
    \37\ On a daily basis, the Fund will disclose for each portfolio
security or other financial instrument of the Fund and of the
Portfolio the following information on the Fund's Web site: ticker
symbol (if applicable); name of security and financial instrument;
number of shares and dollar value of financial instruments held in
the portfolio; and percentage weighting of the security and
financial instrument in the portfolio. The Web site information will
be publicly available at no charge.
---------------------------------------------------------------------------

    The NAV of the Portfolio will be calculated by the Custodian and
determined at the close of the regular trading session on the NYSE
(ordinarily 4:00 p.m. Eastern time) on each day that the NYSE is open,
provided that fixed-income assets (and, accordingly, the Portfolio's
NAV) may be valued as of the announced closing time for trading in
fixed-income instruments on any day that the Securities Industry and
Financial Markets Association (or applicable exchange or market on
which the Portfolio's investments are traded) announces an early
closing time.\38\ Information regarding market price and trading volume
of the Shares will be continuously available on a real-time basis
throughout the day on brokers' computer screens and other electronic
services. Information regarding the previous day's closing price and
trading volume information for the Shares will be published daily in
the financial section of newspapers. The Exchange represents that, with
respect to U.S. exchange-listed equity securities, the intra-day,
closing and settlement prices of common stocks and exchange-traded
equity securities (including shares of preferred securities, ETPs,
closed-end funds, QPTPs, REITs, and U.S. exchange-listed Depositary
Receipts) will be readily available from the national securities
exchanges trading such securities, automated quotation systems,
published or other public sources, or on-line information services such
as Bloomberg or Reuters. With respect to non-U.S. exchange-listed
equity securities, intra-day, closing, and settlement prices of common
stocks and other equity securities (including shares of preferred
securities and non-U.S. Depositary Receipts) will be available from the
foreign exchanges on which such securities trade as well as from major
market-data vendors. Pricing information regarding each asset class in
which the Fund or Portfolio will invest, including Rule 144A
securities, repurchase agreements, reverse repurchase agreements, and
securities of investment companies (other than ETFs registered under
the 1940 Act), will generally be available through nationally
recognized data service providers through subscription arrangements.
Quotation information from brokers and dealers or pricing services will
be available for fixed income securities, including U.S. Government
obligations; U.S. registered, dollar-denominated bonds of foreign
corporations, governments, agencies, and supra-national entities;
short-term instruments; unsponsored Depositary Receipts; and spot and
forward currency transactions held by the Fund and Portfolio.
---------------------------------------------------------------------------

    \38\ The NAV per Share for the Fund will be computed by dividing
the value of the net assets of the Portfolio (i.e., the value of its
total assets less total liabilities) by the total number of Shares
outstanding, rounded to the nearest cent. According to the Exchange,
common stocks and exchange-traded equity securities (including
shares of preferred securities, ETPs, closed-end funds, QPTPs,
REITs, and Depositary Receipts (other than unsponsored Depositary
Receipts traded in the OTC market) traded on a national securities
exchange generally will be valued at the last reported sale price or
the official closing price on that exchange where the stock is
primarily traded on the day that the valuation is made. Foreign
exchange-traded equities and listed ADRs will be valued at the last
sale or official closing price on the relevant exchange on the
valuation date. If, however, neither the last sale price nor the
official closing price is available, each of these securities will
be valued at either the last reported sale price or official closing
price as of the close of regular trading of the principal market on
which the security is listed. According to the Exchange, securities
of investment companies (other than ETFs registered under the 1940
Act), including affiliated funds, money market funds, and closed-end
funds, will be valued at NAV. Unsponsored Depositary Receipts, which
are traded in the OTC market, will be valued at the last reported
sale price from the OTC Bulletin Board or OTC Link LLC on the
valuation date. Rule 144A securities, repurchase agreements, and
reverse repurchase agreements will generally be valued at bid prices
received from independent pricing services as of the announced
closing time for trading in such instruments. Spot currency
transactions will generally be valued at bid prices received from
independent pricing service converted into U.S. dollars at current
market rates on the date of valuation. Foreign currency forwards
normally will be valued on the basis of quotes obtained from broker-
dealers or third party pricing services. According to the Exchange,
fixed income securities, including U.S. Government obligations; U.S.
registered, dollar-denominated bonds of foreign corporations,
governments, agencies; and supra-national entities; and short-term
instruments will generally be valued at bid prices received from
independent pricing services as of the announced closing time for
trading in fixed-income instruments in the respective market or
exchange. In determining the value of a fixed income investment,
pricing services determine valuations for normal institutional-size
trading units of such securities using valuation models or matrix
pricing, which incorporates yield and/or price with respect to bonds
that are considered comparable in characteristics such as rating,
interest rate, and maturity date and quotations from securities
dealers to determine current value. Any assets or liabilities
denominated in currencies other than the U.S. dollar will be
converted into U.S. dollars at the current market rates on the date
of valuation as quoted by one or more sources. In the event that
current market valuations are not readily available or such
valuations do not reflect current market value, the SSgA Master
Trust's procedures require the Pricing and Investment Committee to
determine a security's fair value if a market price is not readily
available, in accordance with the 1940 Act.
---------------------------------------------------------------------------

    The Commission further believes that the proposal to list and trade
the Shares is reasonably designed to promote fair disclosure of
information that may be necessary to price the Shares appropriately and
to prevent trading when a reasonable degree of transparency cannot be
assured. The Exchange will obtain a representation from the issuer of
the Shares that the NAV per Share will be calculated daily and that the
NAV and the Disclosed Portfolio will be made available to all market
participants at the same time.
    Trading in Shares of the Fund will be halted if the circuit-breaker
parameters in NYSE Arca Equities Rule 7.12 have been reached. Trading
also may be halted because of market conditions or for reasons that, in
the view of the Exchange, make trading in the Shares inadvisable.\39\
Trading in the Shares will be subject to NYSE Arca Equities Rule
8.600(d)(2)(D), which sets forth

circumstances under which Shares of the Fund may be halted.
---------------------------------------------------------------------------

    \39\ These may include: (1) The extent to which trading is not
occurring in the securities or the financial instruments
constituting the Disclosed Portfolio of the Fund; or (2) whether
other unusual conditions or circumstances detrimental to the
maintenance of a fair and orderly market are present.
---------------------------------------------------------------------------

    The Exchange represents that it has a general policy prohibiting
the distribution of material, non-public information by its employees.
    The Exchange represents that the Adviser is not a registered
broker-dealer but is affiliated with a broker-dealer and has
implemented a ``fire wall'' with respect to that broker-dealer
regarding access to information concerning the composition or changes
to the Fund's portfolio.\40\ Prior to the commencement of trading, the
Exchange will inform its Equity Trading Permit Holders in an
Information Bulletin (``Bulletin'') of the special characteristics and
risks associated with trading the Shares. The Exchange represents that
trading in the Shares will be subject to the existing trading
surveillances, administered by the Financial Industry Regulatory
Authority (``FINRA'') on behalf of the Exchange, which are designed to
detect violations of Exchange rules and applicable federal securities
laws.\41\
---------------------------------------------------------------------------

    \40\ See supra note 15. The Exchange represents that an
investment adviser to an open-end fund is required to be registered
under the Investment Advisers Act of 1940 (``Advisers Act''). As a
result, the Adviser and its related personnel are subject to the
provisions of Rule 204A-1 under the Advisers Act relating to codes
of ethics. This Rule requires investment advisers to adopt a code of
ethics that reflects the fiduciary nature of the relationship to
clients as well as compliance with other applicable securities laws.
Accordingly, procedures designed to prevent the communication and
misuse of non-public information by an investment adviser must be
consistent with Rule 204A-1 under the Advisers Act. In addition,
Rule 206(4)-7 under the Advisers Act makes it unlawful for an
investment adviser to provide investment advice to clients unless
such investment adviser has (i) adopted and implemented written
policies and procedures reasonably designed to prevent violation, by
the investment adviser and its supervised persons, of the Advisers
Act and the Commission rules adopted thereunder; (ii) implemented,
at a minimum, an annual review regarding the adequacy of the
policies and procedures established pursuant to subparagraph (i)
above and the effectiveness of their implementation; and (iii)
designated an individual (who is a supervised person) responsible
for administering the policies and procedures adopted under
subparagraph (i) above.
    \41\ The Exchange states that FINRA surveils trading on the
Exchange pursuant to a regulatory services agreement. The Exchange
is responsible for FINRA's performance under this regulatory
services agreement.
---------------------------------------------------------------------------

    The Exchange represents that it deems the Shares to be equity
securities, thus rendering trading in the Shares subject to the
Exchange's existing rules governing the trading of equity securities.
In support of this proposal, the Exchange has also made the following
representations:
    (1) The Shares will conform to the initial and continued listing
criteria under NYSE Arca Equities Rule 8.600.
    (2) The Exchange has appropriate rules to facilitate transactions
in the Shares during all trading sessions.
    (3) Trading in the Shares will be subject to the existing trading
surveillances, administered by FINRA on behalf of the Exchange, which
are designed to detect violations of Exchange rules and applicable
federal securities laws, and these procedures are adequate to properly
monitor Exchange trading of the Shares in all trading sessions and to
deter and detect violations of Exchange rules and federal securities
laws applicable to trading on the Exchange.
    (4) FINRA, on behalf of the Exchange, will communicate as needed
regarding trading in the Shares, ETPs, and certain exchange-traded
securities underlying the Shares with other markets and other entities
that are members of the Intermarket Surveillance Group (``ISG''), and
FINRA, on behalf of the Exchange, may obtain trading information
regarding trading in the Shares, ETPs and certain exchange-traded
securities underlying the Shares from such markets and other entities.
In addition, the Exchange may obtain information regarding trading in
the Shares, ETPs, and certain exchange-traded securities underlying the
Shares from markets and other entities that are members of ISG or with
which the Exchange has in place a comprehensive surveillance sharing
agreement.\42\ The Exchange states that FINRA, on behalf of the
Exchange, is able to access, as needed, trade information for certain
fixed income securities held by the Fund reported to FINRA's Trade
Reporting and Compliance Engine.
---------------------------------------------------------------------------

    \42\ For a list of the current members of ISG, see
www.isgportal.org. The Exchange notes that not all components of the
Disclosed Portfolio for the Fund may trade on markets that are
members of ISG or with which the Exchange has in place a
comprehensive surveillance sharing agreement.
---------------------------------------------------------------------------

    (5) Prior to the commencement of trading, the Exchange will inform
its Equity Trading Permit Holders in a Bulletin of the special
characteristics and risks associated with trading the Shares.
Specifically, the Bulletin will discuss the following: (i) The
procedures for purchases and redemptions of Shares in Creation Unit
aggregations (and that Shares are not individually redeemable); (ii)
NYSE Arca Equities Rule 9.2(a), which imposes a duty of due diligence
on its Equity Trading Permit Holders to learn the essential facts
relating to every customer prior to trading the Shares; (iii) the risks
involved in trading the Shares during the Opening and Late Trading
Sessions when an updated Portfolio Indicative Value will not be
calculated or publicly disseminated; (iv) how information regarding the
Portfolio Indicative Value and the Disclosed Portfolio is disseminated;
(v) the requirement that Equity Trading Permit Holders deliver a
prospectus to investors purchasing newly issued Shares prior to or
concurrently with the confirmation of a transaction; and (vi) trading
information.
    (6) For initial and continued listing, the Fund will be in
compliance with Rule 10A-3 under the Act,\43\ as provided by NYSE Arca
Equities Rule 5.3.
---------------------------------------------------------------------------

    \43\ 17 CFR 240.10A-3.
---------------------------------------------------------------------------

    (7) The Fund may hold up to an aggregate amount of 15% of its net
assets in illiquid assets (calculated at the time of investment),
including Rule 144A restricted securities deemed illiquid by the
Adviser.
    (8) Neither the Fund nor the Portfolio will invest in options,
futures contracts, or swap agreements.
    (9) The Fund's and Portfolio's investments will be consistent with
its investment objective and will not be used to enhance leverage.
    (10) Under normal circumstances, the non-U.S. equity securities in
the Fund's portfolio will meet the following criteria at time of
purchase: (a) Non-U.S. equity securities each shall have a minimum
market value of at least $100 million; (b) non-U.S. equity securities
each shall have a minimum global monthly trading volume of 250,000
shares, or minimum global notional volume traded per month of
$25,000,000, averaged over the last six months; (c) the most heavily
weighted non-U.S. equity security shall not exceed 25% of the weight of
the Fund's entire portfolio, and, to the extent applicable, the five
most heavily weighted non-U.S. equity securities shall not exceed 60%
of the weight of the Fund's entire portfolio; and (d) each non-U.S.
equity security shall be listed and traded on an exchange that has
last-sale reporting. In addition, under normal circumstances, the
Portfolio will include a minimum of 20 exchange-listed and traded
equity securities.
    (11) The Portfolio and Fund do not intend to concentrate their
investments in any particular industry. The Portfolio and Fund will
look to the GICS Level 3 (Industries) standard in making industry
determinations.
    (12) Not more than 10% of the net assets of the Fund will be
invested in unsponsored ADRs.
    (13) A minimum of 100,000 Shares for the Fund will be outstanding
at the commencement of trading on the Exchange.

    This approval order is based on all of the Exchange's
representations, including those set forth above and in the Notice,
Amendment Nos. 1 and 2 to the proposed rule change, and the Exchange's
description of the Fund. The Commission notes that the Fund and the
Shares must comply with the requirements of NYSE Arca Equities Rule
8.600 to be initially and continuously listed and traded on the
Exchange.
    For the foregoing reasons, the Commission finds that the proposed
rule change, as modified by Amendment Nos. 1 and 2 thereto, is
consistent with Section 6(b)(5) of the Act \44\ and the rules and
regulations thereunder applicable to a national securities exchange.
---------------------------------------------------------------------------

    \44\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Exchange Act,\45\ that the proposed rule change (SR-NYSEArca-2014-100),
as modified by Amendment Nos. 1 and 2 thereto, be, and it hereby is,
approved.
---------------------------------------------------------------------------

    \45\ 15 U.S.C. 78s(b)(2).
    \46\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\46\
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-12829 Filed 5-27-15; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 86, Number 143 (Thursday, July 29, 2021)]
[Notices]
[Pages 40825-40826]
[FR Doc No: 2021-16155]

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ENVIRONMENTAL PROTECTION AGENCY

[EPA-HQ-OGC-2021-0444; FRL-8780-01-OGC]

Proposed Consent Decree, Clean Air Act Citizen Suit

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice of proposed consent decree; request for public comment.

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

SUMMARY: In accordance with the Clean Air Act, as amended (CAA or the
Act), notice is given of a proposed consent decree in State of New
York, et al. v. Regan et al., No. 21 Civ. 252 (ALC) (S.D.N.Y.). On
January 12, 2021, the States of New York, Connecticut, Delaware,
Massachusetts, and New Jersey, and the City of New York (Plaintiffs)
filed a complaint in the United States District Court for the Southern
District of New York. Plaintiffs alleged that the Environmental
Protection Agency (EPA or the Agency) failed to perform certain non-
discretionary duties in accordance with the Act to take final action to
approve or disapprove, in whole or in part, certain 2015 ozone national
ambient air quality standards (NAAQS) infrastructure state
implementation plan (SIP) submissions addressing the good neighbor
provision from the States of Indiana, Kentucky, Michigan, Ohio, Texas,
and West Virginia. The proposed consent decree would establish
deadlines for EPA to act on these six SIP submissions.

DATES: Written comments on the proposed consent decree must be received
by August 30, 2021.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-HQ-
OGC-2021-0444, online at https://www.regulations.gov (EPA's preferred
method). Follow the online instructions for submitting comments.
    Instructions: All submissions received must include the Docket ID
number for this action. Comments received may be posted without change
to https://www.regulations.gov, including any personal information
provided. For detailed instructions on sending comments and additional
information on the rulemaking process, see the ``Additional Information
about Commenting on the Proposed Consent Decree'' heading under the
SUPPLEMENTARY INFORMATION section of this document. Out of an abundance
of caution for members of the public and our staff, the EPA Docket
Center and Reading Room are closed to the public, with limited
exceptions, to reduce the risk of transmitting COVID-19. Our Docket
Center staff will continue to provide remote customer service via
email, phone, and webform. We encourage the public to submit comments
via https://www.regulations.gov, as there may be a delay in processing
mail and faxes. Hand-deliveries and couriers may be received by
scheduled appointment only. For further information on EPA Docket
Center services and the current status, please visit us online at
https://www.epa.gov/dockets.
    EPA continues to carefully and continuously monitor information
from the CDC, local area health departments, and our federal partners
so that we can respond rapidly as conditions change regarding COVID-19.

FOR FURTHER INFORMATION CONTACT: Rosemary E. Hambright, Air and
Radiation Law Office (2344A), Office of General Counsel, U.S.
Environmental Protection Agency, 1200 Pennsylvania Ave. NW, Washington,
DC 20460; telephone<PHONE_NUMBER>; email address
<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

I. Obtaining a Copy of the Proposed Consent Decree

    The official public docket for this action (identified by Docket ID
No. EPA-HQ-OGC-2021-0444) contains a copy of the proposed consent
decree.
    The electronic version of the public docket for this action
contains a copy of the proposed consent decree and is available through
https://www.regulations.gov. You may use https://www.regulations.gov to
submit or view public comments, access the index listing of the
contents of the official public docket, and access those documents in
the public docket that are available electronically. Once in the
system, key in the appropriate docket identification number then select
``search.''

II. Additional Information About the Proposed Consent Decree

    The proposed consent decree would establish deadlines for EPA to
take action pursuant to CAA section 110(k) on certain SIP submissions
addressing the requirements of CAA section 110(a)(2)(D)(i)(I), 42
U.S.C. 7410(a)(2)(D)(i)(I) (the good neighbor provision), to resolve a
lawsuit filed by the States of New York, Connecticut, Delaware,
Massachusetts, and New Jersey, and the City of New York. Pursuant to
CAA section 110(k), 42 U.S.C. 7410(k), SIP submission are deemed
complete by operation of law 6 months after receipt by EPA. EPA must
approve or disapprove, in whole or in a part, SIP submissions within 12
months of being deemed complete.
    The proposed consent decree would require the EPA, pursuant to CAA
sections 110(k)(2)-(4), 42 U.S.C. 7410(k)(2)-(4), to take final action
to approve or disapprove, in whole or in part, the portion of six 2015
ozone NAAQS infrastructure SIP submissions addressing the good neighbor
provision from the States of Indiana, Kentucky, Michigan, Ohio, Texas,
and West Virginia. EPA received the good neighbor SIP submissions at
issue on the following dates: Indiana on November 2, 2018, Kentucky on
January 9, 2019, Michigan on March 8, 2019,

Ohio on September 28, 2018, Texas on September 12, 2018, and West
Virginia on February 4, 2019.
    Under the terms of the proposed consent decree, no later than April
30, 2022, EPA shall sign a final rule to approve, disapprove,
conditionally approve, or approve in part and conditionally approve or
disapprove in part, the 2015 ozone NAAQS good neighbor SIP submissions
from Indiana, Kentucky, Michigan, Ohio, Texas, and West Virginia.
However, under the proposed consent decree, if, by February 28, 2022,
EPA signs a proposal of full or partial disapproval of any of the six
good neighbor SIP submissions and signs a proposal for a federal
implementation plan to implement any such fully or partially
disapproved SIP submission, EPA shall have until December 15, 2022, to
sign a final action to approve, disapprove, conditionally approve, or
approve in part and conditionally approve or disapprove in part, each
such good neighbor SIP submission.
    In accordance with section 113(g) of the CAA, for a period of
thirty (30) days following the date of publication of this document,
the Agency will accept written comments relating to the proposed
consent decree. EPA or the Department of Justice may withdraw or
withhold consent to the proposed consent decree if the comments
disclose facts or considerations that indicate that such consent is
inappropriate, improper, inadequate, or inconsistent with the
requirements of the Act.

III. Additional Information About Commenting on the Proposed Consent
Decree

    Submit your comments, identified by Docket ID No. EPA-HQ-OGC-2021-
0444, via https://www.regulations.gov. Once submitted, comments cannot
be edited or removed from this docket. EPA may publish any comment
received to its public docket. Do not submit to EPA's docket at https://www.regulations.gov any information you consider to be Confidential
Business Information (CBI) or other information whose disclosure is
restricted by statute. Multimedia submissions (audio, video, etc.) must
be accompanied by a written comment. The written comment is considered
the official comment and should include discussion of all points you
wish to make. EPA will generally not consider comments or comment
contents located outside of the primary submission (i.e. on the web,
cloud, or other file sharing system). For additional submission
methods, the full EPA public comment policy, information about CBI or
multimedia submissions, and general guidance on making effective
comments, please visit https://www.epa.gov/dockets/commenting-epa-dockets. For additional information about submitting information
identified as CBI, please contact the person listed in the FOR FURTHER
INFORMATION CONTACT section of this document. Note that written
comments containing CBI and submitted by mail may be delayed and
deliveries or couriers will be received by scheduled appointment only.
    If you submit an electronic comment, EPA recommends that you
include your name, mailing address, and an email address or other
contact information in the body of your comment. This ensures that you
can be identified as the submitter of the comment and allows EPA to
contact you in case EPA cannot read your comment due to technical
difficulties or needs further information on the substance of your
comment. Any identifying or contact information provided in the body of
a comment will be included as part of the comment that is placed in the
official public docket and made available in EPA's electronic public
docket. If EPA cannot read your comment due to technical difficulties
and cannot contact you for clarification, EPA may not be able to
consider your comment.
    Use of the https://www.regulations.gov website to submit comments
to EPA electronically is EPA's preferred method for receiving comments.
The electronic public docket system is an ``anonymous access'' system,
which means EPA will not know your identity, email address, or other
contact information unless you provide it in the body of your comment.
    Please ensure that your comments are submitted within the specified
comment period. Comments received after the close of the comment period
will be marked ``late.'' EPA is not required to consider these late
comments.

Gautam Srinivasan,
Associate General Counsel.
[FR Doc. 2021-16155 Filed 7-28-21; 8:45 am]
BILLING CODE 6560-50-P


[Federal Register: September 21, 2009 (Volume 74, Number 181)]
[Notices]
[Page 48114-48115]
[DOCID:fr21se09-87]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60665; File No. SR-CBOE-2009-052]

Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Order Approving a Proposed Rule Change Related to the
Hybrid Matching Algorithms

September 14, 2009.
    On July 17, 2009, the Chicago Board Options Exchange, Incorporated
(the ``Exchange'' or ``CBOE'') filed with the Securities and Exchange
Commission (the ``Commission''), pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the ``Act''),\1\ and Rule 19b-4
thereunder,\2\ a proposed rule change to amend CBOE Rules 6.45A and
6.45B to adopt a modified participation entitlement overlay to orders
executed electronically on the CBOE Hybrid System (``Hybrid System'').
The proposed rule change was published for comment in the Federal
Register on August 10, 2009.\3\ The Commission received no comments on
the proposed rule change. This order approves the proposed rule change.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 60420 (August 3,
2009), 74 FR 39989.
---------------------------------------------------------------------------

    CBOE Rules 6.45A and 6.45B set forth, among other things, the
manner in which electronic Hybrid System trades in options are
allocated. Paragraph (a) of each rule essentially governs how incoming
orders received electronically by the Exchange are electronically
executed against interest in the CBOE quote. Paragraph (a) of both
rules currently provides for several different matching algorithms,
including price-time and pro-rata priority matching algorithms with
additional priority overlays.\4\ The priority overlays currently
include: public customer priority, market turner priority, and
participation entitlements for certain qualifying market-makers.\5\
These overlays are optional.
---------------------------------------------------------------------------

    \4\ Rules 6.45A and 6.45B also include the Ultimate Matching
Algorithm (``UMA''). CBOE did not propose any changes to the UMA in
this filing.
    \5\ Under the existing participation entitlements, the Exchange
may determine to grant market-makers participation entitlements
pursuant to the provisions of Rules 8.87, Participation Entitlement
of DPMs and e-DPMs; 8.13, Preferred Market-Maker Program; or 8.15B,
Participation Entitlement of LLMs. More than one such participation
entitlement may be activated for an option class (including at
different priority sequences), however in no case may more than one
participation entitlement be applied on the same trade. In
allocating the participation entitlement, all of the following
apply: (i) To be entitled to its participation entitlement, the
market-maker's order and/or quote must be at the best price on the
Exchange; (ii) the market-maker may not be allocated a total
quantity greater than the quantity that it is quoting (including
orders not part of quotes) at that price (if pro-rata priority is in
effect, and the market-maker's allocation of an order pursuant to
its participation entitlement is greater than its percentage share
of quotes/orders at the best price at the time that the
participation entitlement is granted, the market-maker shall not
receive any further allocation of that order); (iii) in establishing
the counterparties to a particular trade, the participation
entitlement must first be counted against that market-maker's
highest priority bids or offers; and (iv) the participation
entitlement shall not be in effect unless the public customer
priority is in effect in a priority sequence ahead of the
participation entitlement and then the participation entitlement
shall only apply to any remaining balance. See Rules 6.45A(a)(ii)(2)
and 6.45B(a)(i)(2).
---------------------------------------------------------------------------

    The purpose of the rule filing is to adopt the ``modified
participation entitlement,'' an additional optional priority overlay
for the price-time and pro-rata matching algorithms. The modified
participation entitlement will operate in the same manner as the
existing participation entitlement for certain qualifying market-
makers; however, if at the time of execution there is one or more
public customer orders resting at the execution price but none was
entered first in time sequence, then the market-maker participation
entitlement and public customer priority overlays would not be applied
to the allocation--i.e. the allocation would revert back to the price-
time or pro-rata methods. The participation entitlement for certain
qualifying market-makers would therefore only be applied to the
execution of an inbound order if there are no public customer orders
resting on the Hybrid System at the best price or if a public customer
was the first to rest interest at the best price, in which case the
public customer order would have priority over the order of the market
maker. This outcome is a

change from how the existing participation entitlement works today.\6\
---------------------------------------------------------------------------

    \6\ For example, assume the matching algorithm for an options
class is established so that public customer orders have first
priority, the modified participation entitlement has second
priority, and any remaining balance is allocated using the pro-rata
matching algorithm. If, at the time of execution, there is one or
more public customer orders at the execution price but none is first
in time sequence (for instance, because a market-maker quote was the
first trading interest posted at the execution price), then the
market-maker participation entitlement and public customer priority
overlays would not be applied and the incoming order would be
allocated solely on a pro-rata basis.
---------------------------------------------------------------------------

    The Commission has carefully reviewed the proposed rule change and
finds that it is consistent with the requirements of the Act and the
rules and regulations thereunder applicable to a national securities
exchange.\7\ In particular, the Commission finds that the proposed rule
change is consistent with Section 6(b)(5) of the Act,\8\ which
requires, among other things, that the rules of an exchange be designed
to promote just and equitable principles of trade, remove impediments
to and perfect the mechanism of a free and open market and a national
market system, and, in general, to protect investors and the public
interest; and are not designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
---------------------------------------------------------------------------

    \7\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
    \8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The new priority overlay is the same as the current market-maker
participation entitlement overlay, except that the participation
entitlement will only be applied if there are no public customer orders
resting at the best price or if a public customer was the first to rest
interest at the best price. Otherwise, neither the current public
customer priority overlay nor the market-maker participation
entitlement priority overlay will be in effect. Thus, public customer
orders will have priority over the orders of other market participants
if they are the first orders entered at the best price; if they are not
the first orders at the best price, then the order will be allocated
among market participants using the underlying matching algorithm--
price-time or pro-rate--both of which the Commission already has found
as consistent with the Act.\9\ The Commission therefore believes that
the modified participation entitlement priority overlay is consistent
with the Act.
---------------------------------------------------------------------------

    \9\ See Securities Exchange Act Release No. 51822 (June 10,
2005), 70 FR 35321 (June 17, 2005) (Adopting CBOE Rule 6.45B).
---------------------------------------------------------------------------

IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\10\ that the proposed rule change (SR-CBOE-2009-052), be, and
hereby is, approved.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78s(b)(2).
    \11\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-22683 Filed 9-18-09; 8:45 am]

BILLING CODE 8010-01-P