Home Address: 	City:	State:

System	Inspection Guidelines	Must Correct	Verifier

Approved	N/A

Ventilation

Whole-Building Delivered Ventilation 2	1.1 Ventilation rate meets
requirements of ASHRAE Std. 62.2 2007, Section 4.4 1	(	(	(

	1.2 In Hot-Humid climates, net exhaust flow < 7.5 CFM per 100 sq. ft.	(
(	(

	1.3 In Very Cold climates, net supply flow < 7.5 CFM per 100 sq. ft. 	(
(	(

Local Mechanical  Exhaust	System installed in each kitchen and bathroom
and meets one of the following airflow standards:

	Location	Continuous rate:	Intermittent rate: 3

	2.1 Kitchen 	> 5 ACH, based on kitchen volume 4	> 100 CFM 	(	(	(

	2.2 Bathroom	> 20 CFM	> 50 CFM 	(	(	(

	2.3 If fans share common exhaust duct, back-draft dampers installed	(	(
(

	2.4 Common exhaust duct not shared by fans in separate dwellings	(	(	(

	2.5 Total net exhaust flow of two largest exhaust fans (excluding
summer cooling fans) is < 15 CFM / 100 sq. ft. of occupiable space when
at full capacity 5	(	(	(

	2.6 Clothes dryers exhaust vented directly to outdoors 6	(	(	(

Fan Sound Ratings 7	3.1 Continuous fans rated at < 1 sone at minimum
rated flow rate	(	(	(

	3.2 Intermittent fans rated at < 3 sone, unless maximum rated flow rate
> 400 CFM	(	(	(

Controls	4.1 Continuously-operating ventilation system and mechanical
exhaust fans designed to operate without occupant intervention during
all occupiable hours	(	(	(

	4.2 Readily accessible override controls provided to occupant for
continuously-operating ventilation system and mechanical exhaust fans 	(
(	(

	4.3 If present, intermittently-operating ventilation system designed to
automatically operate at least one hour out of every twelve	(	(	(

	4.4 Controls labeled, unless function is obvious (e.g., bathroom
exhaust fan)	(	(	(

Air Inlets & Ventilation Source

	5.1 Air inlets located > 10 ft. from stack, vent, exhaust hood, or
vehicle exhaust and > 3 ft. from dryer exhaust	(	(	(

	5.2 Air inlets unable to be obstructed by snow, plantings, or other
material	(	(	(

	5.3 Air inlets provided with mesh rodent / insect screen with openings
< 0.5”	(	(	(

	5.4 Ventilation air comes directly from outdoors and not from adjacent
dwelling units, garages, unconditioned crawlspaces, or attics	(	(	(

Combustion Pollutants

Garage Isolation	6.1 Air-handler and return ducts not located within the
garage	(	(	(

	6.2 Garage doors adjacent to occupiable spaces gasketed or made
airtight	(	(	(

Appliances and Detectors 	7.1 No ventless combustion appliances
installed, except for kitchen cooking devices	(	(	(

	7.2 One carbon monoxide detector, certified by CSA 6.19-01 or UL 2034,
installed in central location near sleeping areas for homes with
combustion appliances or attached garage 8 	(	(	(

Filtration

HVAC Filter	8.1 > 6 MERV filter installed in ducted mechanical systems 9
(	(	(

	8.2 Filter located so that return and ventilation air pass through
prior to conditioning	(	(	(

	8.3 Filter accessible for maintenance by owner 	(	(	(

	8.4 Filter rack fitted with flexible, air-tight gasketing on the
surface that contacts the downstream side of the filter, or equivalent
method	(	(	(

	8.5 Filter held firmly in place by friction-fit spring clips in the
filter rack, installed on the upstream side of the filter, or equivalent
method	(	(	(

For proper procedures, exceptions, selection methods, and alternate
methods to the following checklist, see the ASHRAE Standard 62.2 - 2007.
 All components shall be designed and installed per manufacturers’
requirements and local codes.

The system shall have at least one supply or exhaust fan with associated
ducts and controls.  Local exhaust fans are allowed to be part of an
exhaust ventilation system.  Outdoor air ducts connected to the return
side of an air handler are allowed to be part of a supply ventilation
system if manufacturers’ requirements for return air temperature are
met. The airflow required by this standard refers to the delivered
airflow of the system as installed and tested using a flow hood, flow
grid, or other airflow measuring device.

An intermittent mechanical exhaust system shall be designed to operate
as needed by the occupant. Control devices shall not impede occupant
control in intermittent systems.

A vented range hood, or appliance-range hood combination, is required if
exhaust fan flow rate is < 5 kitchen ACH.

If net exhaust flow exceeds allowable limit, net exhaust flow shall be
reduced or compensating outdoor airflow provided. Net exhaust flow
requirement is exempted if no atmospherically vented combustion or
solid-fuel burning appliances are located inside the pressure boundary.

Electric condensing dryers equipped with condensate drain need not be
vented.

Fans exempted from this requirement include HVAC air handlers and
remote-mounted fans (i.e., fans outside habitable spaces and with > 4
ft. ductwork between fan and intake grills).

Carbon monoxide detectors shall be placed according to NFPA 720 and be
hard-wired with a battery back-up function.

Manufacturer filter media boxes designed to accomplish these purposes
meet these requirements.

OMB Control No. xxxx-xxxx

ENERGY STAR Qualified Homes

Indoor Air Quality Checklist

EPA Form 5900-173

The government estimates the average time needed to fill out this form
is 0.40 hours and welcomes suggestions for reducing this effort. Send
comments (referencing OMB Control Number) to the Director, Collection
Strategies Division, U.S. EPA (2822T), 1200 Pennsylvania Ave., NW,
Washington, D.C. 20460.

ENERGY STAR Qualified Homes

 Notes


 G 1 APPENDIX G. The Risk Quotient Method and Levels of Concern The risks to terrestrial and aquatic organisms are determined based on a method by which risk quotients ( RQs) are compared with levels of concern ( LOCs). This method provides an indication of a chemical's potential to cause an effect in the field from effects observed in laboratory studies, when used as directed. Risk quotients are expressed as the ratio of the estimated environmental concentration ( EEC) to the species specific toxicity reference value ( TRV):

RQ EEC TRV =

Units for EEC and TRV should be the same ( e. g., : g/ L or ppb). The RQ is compared to the LOC as part of a risk characterization. Acute and chronic LOCs for terrestrial and aquatic organisms are given in recent Agency guidance ( EPA, 2004) and summarized in Table F 1 below.

Table E1. Level of concern ( LOC) by risk presumption category ( U. S. EPA 2004). Risk Presumption RQ LOC Mammals and Birds Acute Risk a EECb/ LC50 or LD50/ sqftc or LD50/ day d 0.5 Acute Restricted Use e EEC/ LC50 or LD50/ sqft or LD50/ day ( or LD50 < 50 mg/ kg) 0.2 Acute Endangered Species f EEC/ LC50 or LD50/ sqft or LD50/ day 0.1 Chronic Risk EEC/ NOEC 1 Aquatic Animals Acute Risk EECg/ LC50 or EC50 0.5 Acute Restricted Use EEC/ LC50 or EC50 0.1 Acute Endangered Species EEC/ LC50 or EC50 0.05 Chronic Risk EEC/ NOEC 1 Terrestrial and Semi aquatic Plants Acute Risk EEC/ EC25 1 Acute Endangered Species EEC/ EC05 or NOEC 1 Aquatic Plants Acute Risk EECh/ EC50 1 Acute Endangered Species EECg/ EC05 or NOEC 1 aPotential for acute toxicity for receptor species if RQ > LOC ( EPA, 2004). bEstimated environmental concentration ( ppm) on avian/ mammalian food items cmg/ ft2 dmg of toxicant consumed per day ePotential for acute toxicity for receptor species, even considering restricted use classification, if RQ > LOC ( EPA, 2004). fPotential for acute toxicity for endangered species of receptor species if RQ > LOC ( EPA, 2004). gEEC = ppb or ppm in water hEEC = lbs a. i./ A For acute exposure to terrestrial and aquatic plants, an LOC of 1 is used. Currently the Agency does not perform assessments for chronic risk to plants or acute/ chronic risks to non target insects.

For the Tier 1 aquatic assessment of Imazapyr acute exposure is represented by the maximum 24  G 2 hour EEC value EEC value calculated using GENEEC 2. EECs used to assess acute and chronic risk to avian and mammalian species to Imazapyr were calculated using the Tier 1 model T REX.

The Agency has developed an Endangered Species Protection Program to identify pesticides whose use may cause adverse impacts on endangered and threatened species, and to implement mitigation measures that will eliminate the adverse impacts. At present, the program is being implemented on an interim basis as described in a Federal Register notice ( 54 FR 27984 28008, July 3, 1989), and is providing information to pesticide users to help them protect these species on a voluntary basis. As currently planned, the final program will call for label modifications referring to required limitations on pesticide uses, typically as depicted in county specific bulletins or by other site specific mechanisms as specified by state partners. A final program, which may be altered from the interim program, will be described in a future Federal Register notice. The Agency is not imposing label modifications at this time. Rather, any requirements for product use modifications will occur in the future under the Endangered Species Protection Program.

Limitations in the use of Imazapyr may be required to protect endangered and threatened species, but these limitations have not been defined and may be formulation specific. The Agency will notify the registrants if any label modifications are necessary. Such modifications would most likely consist of the generic label statement referring pesticide users to use limitations contained in county Bulletins.

Literature Cited EPA ( U. S. Environmental Protection Agency). 2004. Overview of the Ecological Risk Assessment Process in the Office of Pesticide Programs, U. S. Environmental Protection Agency: Endangered and Threatened Species Effects Determinations. Office of Prevention, Pesticide, and Toxic Substances. January 23.


[Federal Register Volume 77, Number 95 (Wednesday, May 16, 2012)]
[Notices]
[Pages 28909-28912]
[FR Doc No: 2012-11793]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-66958; File No. SR-NSX-2012-07]

Self-Regulatory Organizations; National Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Clarify the Purpose of, and Statutory Basis for, the May 1, 2012
Changes to the NSX Fee and Rebate Schedule

May 10, 2012.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on May 9, 2012, National Stock Exchange, Inc. filed with the
Securities and Exchange Commission (``Commission'') the proposed rule
change, as described in Items I and II below, which Items have been
prepared by the Exchange. The Commission is publishing this notice to
solicit comment on the proposed rule change from interested persons.
---------------------------------------------------------------------------

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

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

    National Stock Exchange, Inc. (``NSX[supreg]'' or ``Exchange'') is
proposing to clarify the purpose of, and statutory basis for, its
amended Fee and Rebate Schedule (the ``Fee Schedule'') issued pursuant
to Exchange Rule 16.1(c) that went into effect on May 1, 2012 pursuant
to SR-NSX-2012-06 to adjust the take fee and rebates for certain orders
executed in the Exchange's Automatic Execution Mode, adjust the rebates
and for certain orders executed in the Exchange's Order Delivery Mode,
and re-introduce a market data revenue rebate sharing program, and to
reinstate the fee changes that were implemented in SR-NSX-2012-06 which
was withdrawn on May 8, 2012.
    The text of the proposed rule change is available on the Exchange's
Web site at http://www.nsx.com, at the principal office of the
Exchange, and at the Commission's Public Reference Room.

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

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

1. Purpose
    With this rule change, the Exchange is proposing to more clearly
state the purpose of, and statutory basis for, its amended Fee Schedule
that went into effect on May 1, 2012, pursuant to SR-NSX-2012-06, and
to reinstate the fee changes that were implemented in SR-NSX-2012-06
which was withdrawn on May 8, 2012. No changes to the Fee Schedule are
proposed other than those described in SR-NSX-2012-06.\3\
---------------------------------------------------------------------------

    \3\ As a result of this filing, the fee changes that were
implemented on May 1, 2012 will continue uninterrupted despite the
withdrawal of SR-NSX-2012-06.
---------------------------------------------------------------------------

    The fee change proposed by SR-NSX-2012-06 modified the Fee Schedule
in four respects. First, SR-NSX-2012-06 amended the rebates applicable
to liquidity adding order executions in securities priced at least one
dollar in the Exchange's Automatic Execution Mode of order interaction
(``AutoEx''). Second, SR-NSX-2012-06 amended the take fee applicable to
order executions in securities priced at least one dollar in AutoEx.
Third, SR-NSX-2012-06 amended the rebate tiers applicable to order
executions in securities priced at least one dollar in the Exchange's
Order Delivery Mode of order interaction (``Order Delivery''). Finally,
with respect to the rebate adjustments in both AutoEx and Order
Delivery, SR-NSX-2012-06 re-established a market data rebate sharing
program with Exchange ETP Holders. Each of the changes is further
addressed below.
1. Rebates for Executions in Securities Priced at Least One Dollar in
AutoEx
    SR-NSX-2012-06 proposed to modify the rebates applicable to
liquidity adding order executions in securities priced one dollar or
more in AutoEx. These changes can be found in Section I of the Fee
Schedule.
    Prior to May 1, 2012, a flat $0.0026 rebate per share applied to an
ETP Holder's displayed liquidity adding order executions of securities
of at least one dollar in AutoEx. Under SR-NSX-2012-06, progressively
greater rebates, of $0.0024, $0.0026, $0.0027, $0.0028 or $0.0029 per
share, plus 50% of market data revenues attributable to such orders if
the second (or higher) volume tier is achieved, apply depending on an
ETP Holder's ``Average Daily Volume'' (``ADV'') (as such term is
further discussed below). A $0.0024 per share rebate (with no market
data revenue sharing) applies to an ETP Holder's AutoEx, dollar or
higher displayed order executions that add liquidity where the ETP
Holder's ADV is less than 500,000 shares; a $0.0026 per share rebate
(plus 50% market data revenue sharing, as further described below)
applies to an ETP Holder's AutoEx, dollar or higher displayed order
executions that add liquidity where the ETP Holder's ADV is at least
500,000 shares but less than 1,500,000 shares; a $0.0027 per share
rebate (plus 50% market data revenue sharing) applies to an ETP
Holder's AutoEx, dollar or higher displayed order executions that add
liquidity where the ETP Holder's ADV is at least 1,500,000 shares but
less than 5,000,000 shares; a $0.0028 per share rebate (plus 50% market
data revenue sharing) applies to an ETP Holder's AutoEx, dollar or
higher displayed order executions that add liquidity where the ETP
Holder's ADV is at least 5,000,000 shares but less than 10,000,000
shares; and a $0.0029 per share rebate (plus 50% market data revenue
sharing) applies to an ETP Holder's AutoEx, dollar or higher

displayed orders that add liquidity where the ETP Holder's ADV is at
least 10,000,000 shares.
    SR-NSX-2012-06 also introduced the term ``ADV'', as defined in
Endnote 3. Endnote 3 provides that ``ADV'' means, with respect to an
ETP Holder, the number of shares such ETP Holder has executed on
average per trading day (excluding partial trading days) in Auto-Ex or
Order Delivery, as applicable, across all tapes in securities priced at
least one dollar on NSX for the calendar month (or partial month, as
applicable) in which the executions occurred. Endnote 3 further
clarifies that ``ADV'', as used with respect to AutoEx, shall mean only
those executed shares of the ETP Holder that are submitted in AutoEx
mode and that ADV, as used with respect to Order Delivery, shall mean
only those executed shares of the ETP Holder that are submitted in
Order Delivery mode. The definition of ``ADV'' as proposed was derived
from the previously defined term ``Liquidity Adding ADV'', which
defined term was eliminated. The term ``ADV'' differs from ``Liquidity
Adding ADV'' in that: (i) ADV captures both liquidity adding and taking
volume (whereas Liquidity Adding ADV captured only liquidity adding
volume); (ii) ADV is limited to volumes in AutoEx or Order Delivery
depending on the rebate or take fee that is being calculated, i.e., the
rebates in AutoEx only measure for purposes of ADV those executions of
orders that the ETP Holder has submitted in AutoEx mode, and the
rebates in Order Delivery only measure for purposes of ADV those
executions of orders that the ETP Holder has submitted in Order
Delivery mode (whereas Liquidity Adding ADV captured volumes in both
modes of order interaction); and (iii) ADV does not include sub-dollar
securities for any purpose (whereas Liquidity Adding ADV carved out
sub-dollar securities only with respect to rebates in order delivery,
notwithstanding that no rebate or taking volume tiers previously
applied in AutoEx).
2. Take Fee for Execution of Securities Priced at Least One Dollar in
AutoEx
    Prior to May 1, 2012, a flat fee of $0.0030 per share applied to
order executions that take liquidity in securities of at least one
dollar in AutoEx. SR-NSX-2012-06 offered a progressively lower take fee
of $0.0030, $0.0029, $0.0028, or $0.0026 per share depending on an ETP
Holder's ADV. A $0.0030 per share take fee applies to an ETP Holder's
AutoEx, dollar or higher order executions that take liquidity where the
ETP Holder's ADV is less than 5,000,000 shares; a $0.0029 per share
take fee applies to an ETP Holder's AutoEx, dollar or higher order
executions that take liquidity where the ETP Holder's ADV is at least
5,000,000 shares but less than 10,000,000 shares; a $0.0028 per share
take fee applies to an ETP Holder's AutoEx, dollar or higher order
executions that take liquidity where the ETP Holder's ADV is at least
10,000,000 shares but less than 20,000,000 shares; and a $0.0026 per
share take fee applies to an ETP Holder's AutoEx, dollar or higher
order executions that take liquidity where the ETP Holder's ADV is at
least 20,000,000 shares. As noted above, ADV with respect to the take
fee is calculated to include only the ETP Holder's volumes in AutoEx
and excludes sub-dollar securities.
3. Rebates for Executions of Displayed Orders of Securities Priced at
Least One Dollar in Order Delivery
    As previously reflected in Section II of the Fee Schedule, for all
liquidity adding displayed orders of securities priced at least one
dollar in Order Delivery, the Exchange prior to May 1, 2012 offered an
$0.0008 per share rebate for each Order Delivery displayed order
execution that adds liquidity where an ETP Holder's Liquidity Adding
ADV was less than 15 million, or a $0.0024 per share rebate for each
such order execution where an ETP Holder's Liquidity Adding ADV was at
least 15 million. Under SR-NSX-2012-06, progressively greater rebates,
of $0.0008, $0.0024 or $0.0027 per share, plus 25% of market data
revenues attributable to such orders if the third volume tier is
achieved or 50% of market data revenues if the fourth volume tier is
achieved, applies depending on an ETP Holder's ADV. A $0.0008 per share
rebate (with no market data revenue sharing) applies to an ETP Holder's
Order Delivery, dollar or higher displayed order executions that add
liquidity where the ETP Holder's ADV is less than 15,000,000 shares; a
$0.0024 per share rebate (with no market data revenue sharing) applies
to an ETP Holder's Order Delivery, dollar or higher displayed order
executions that add liquidity where the ETP Holder's ADV is at least
15,000,000 shares but less than 25,000,000 shares; a $0.0027 per share
rebate (plus 25% market data revenue sharing, as further described
below) applies to an ETP Holder's Order Delivery, dollar or higher
displayed order executions that add liquidity where the ETP Holder's
ADV is at least 25,000,000 shares but less than 30,000,000 shares; and
a $0.0027 per share rebate (plus 50% market data revenue sharing)
applies to an ETP Holder's Order Delivery, dollar or higher displayed
order executions that add liquidity where the ETP Holder's ADV is at
least 30,000,000 shares. As noted above, ADV with respect to the rebate
in Order Delivery is calculated to include only the ETP Holder's
volumes in Order Delivery and excludes sub-dollar securities.
4. Market Data Rebate Sharing Program
    Prior to May 1, 2012, market data revenues attributable to quoting
and trading were not shared with ETP Holders. Under SR-NSX-2012-06, the
Fee Schedule provides a rebate to each ETP Holder equal to a specified
percentage (not exceeding 50%) of the market data revenue received by
the Exchange that is attributable to such ETP Holder's trading and
quoting of displayed orders priced at one dollar or higher in both
AutoEx and Order Delivery, provided that the ETP Holder achieves the
required ADV during the measurement period as described above.
    Explanatory Endnote 8 of the Fee Schedule describes the market data
revenue rebate program.\4\ Explanatory Endnote 8 makes explicit that no
market data rebates will be provided with respect to Zero Display
Reserve Orders or securities priced less than a dollar. Explanatory
Endnote 8 provides that ETP Holders that have achieved an ADV as
required in Section I (AutoEx) or Section II (Order Delivery) of the
Fee Schedule shall receive a specified percentage rebate of Tape A, B
and C market data revenue attributable to such ETP Holder's trading and
quoting of displayed orders priced at or above one dollar.
---------------------------------------------------------------------------

    \4\ Explanatory Endnote 8 is based on prior Exchange Rule 16.4,
which was deleted from NSX Rules pursuant to a rule change effective
April 1, 2011. See Securities Exchange Act Release No. 64208 (April
6, 2011), 76 FR 20412 (April 12, 2011) (SR-NSX-2011-02). The
Exchange had previously established other iterations of market data
rebate sharing programs as approved by the Commission which shared
up to 50% of trade and quote market data revenue; see Securities
Exchange Act Release No. 61103 (December 3, 2009), 74 FR 65576
(December 10, 2009) (SR-NSX-2009-07); Securities Exchange Act
Release No. 58935 (November 13, 2008), 73 FR 69703 (November 19,
2008) (SR-NSX-2008-19); and Securities Exchange Act Release No.
56890 (December 4, 2007), 72 FR 70360 (December 11, 2007) (SR-NSX-
2007-13). While the volume tiers and certain other aspects of the
current market data revenue sharing program differ from prior
programs offered by the Exchange, the methodology utilized by the
Exchange to calculate an ETP Holder's market data rebates under the
program remains identical to the previously utilized methodology.
---------------------------------------------------------------------------

    Explanatory Endnote 8 also established that market data rebates
paid or payable to ETP Holders may be modified based on market data
revenue adjustments applicable to the Exchange

that may be made from time to time by the securities information
processors. Explanatory Endnote 8 also specifies that such rebates
shall be paid quarterly and that, notwithstanding the foregoing, an ETP
Holder shall not be eligible for market data revenue rebates which
aggregate less than $250 per quarter with respect to such ETP Holder.
This exception for de minimis payments is based the Exchange's belief
that the monetary value of such rebate is outweighed by the associated
administrative burden both to the Exchange and to the recipient ETP
Holders.\5\
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 57316 (February 12,
2008), 73 FR 9379 (February 20, 2008) (NSX-2008-01).
---------------------------------------------------------------------------

Rationale
    In adjusting the volume thresholds necessary to achieve
progressively higher rebates and lower take fees \6\ in SR-NSX-2012-06,
the Exchange regarded these changes as necessary to create incentives
for ETP Holders to submit increased volumes of orders in to the
Exchange and, ultimately, to increase the revenues of the Exchange for
the purpose of continuing to adequately fund its regulatory and general
business functions. The Exchange believes that these rebate changes,
and in particular the reintroduced market data rebate program, will not
impair its ability to carry out its regulatory responsibilities. The
modifications are reasonable and equitably allocated to those ETP
Holders that opt to submit orders in AutoEx (as liquidity provider or
taker) and Order Delivery, and are not unfairly discriminatory because
ETP Holders are free to elect whether or not to send such orders to the
Exchange. In addition, the modifications, by providing a market data
rebate for displayed orders only (and not Zero Display Reserve Orders),
will tend to incentivize ETP Holders to submit displayed orders over
Zero Display Reserve Orders. Based upon the information above, the
Exchange believes that the adjustments to the Fee Schedule are
consistent with the protection of investors and the public interest.
---------------------------------------------------------------------------

    \6\ At the higher ADV volume tiers, the fees and rebate
schematic will be inverted in that the displayed liquidity provider
rebates will be greater than the liquidity taker fees.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the rule changes as described in SR-NSX-
2012-06 and as clarified herein are consistent with the provisions of
Section 6(b) of the Act, in general, and Section 6(b)(4) of the Act,\7\
in particular in that each change is designed to provide for the
equitable allocation of reasonable dues, fees and other charges among
its members and other persons using the facilities of the Exchange.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    The changes to the rebates payable for executions in securities
priced at least one dollar in AutoEx are reasonable because they are
designed to incentivize the submission of such orders and increase
order volume on the Exchange. The changes are equitably allocated and
not unfairly discriminatory because all qualified ETP Holders are
eligible to submit (or not submit) displayed liquidity providing orders
of securities priced at least one dollar in AutoEx on the Exchange. The
volume adjustments are reasonable methods to incentivize the submission
of such orders. All similarly situated members are subject to the same
fee structure, and access to the Exchange is offered on terms that are
not unfairly-discriminatory. Volume-based rebates and discounts have
been widely adopted in the equities markets, and are equitable because
they are open to all members on an equal basis and provide rebates that
are reasonably related to the value of an exchange's market quality
associated with the requirements for the favorable pricing tier.
    The changes to the take fees for executions in securities priced at
least one dollar in AutoEx are reasonable because they are designed to
incentivize the submission of such orders and increase order volume on
the Exchange. The changes are equitably allocated and not unfairly
discriminatory because all qualified ETP Holders are eligible to submit
(or not submit) displayed liquidity taking orders of securities priced
at least one dollar in AutoEx on the Exchange. The volume adjustments
are reasonable methods to incentivize the submission of such orders.
All similarly situated members are subject to the same fee structure,
and access to the Exchange is offered on terms that are not unfairly-
discriminatory. Volume-based take fee discounts have been widely
adopted in the equities markets, and are equitable because they are
open to all members on an equal basis and offer fees that are
reasonably related to the value of an exchange's market quality
associated with the requirements for the favorable pricing tier.
    The changes to the rebates payable for executions in securities
priced at least one dollar in Order Delivery are reasonable because
they are designed to incentivize the submission of such orders and
increase order volume on the Exchange. The changes are equitably
allocated and not unfairly discriminatory because all qualified ETP
Holders are eligible to submit (or not submit) displayed liquidity
providing orders of securities priced at least one dollar in Order
Delivery on the Exchange. The volume adjustments are reasonable methods
to incentivize the submission of such orders. All similarly situated
members are subject to the same fee structure, and access to the
Exchange is offered on terms that are not unfairly-discriminatory.
Volume-based rebates and discounts have been widely adopted in the
equities markets, and are equitable because they are open to all
members on an equal basis and provide rebates that are reasonably
related to the value of an exchange's market quality associated with
the requirements for the favorable pricing tier.
    The market data rebate sharing program that is applicable to
providers of displayed liquidity in both AutoEx and Order Delivery for
executions of orders in securities priced at least one dollar is
reasonable because it is designed to incentivize ETP Holders to provide
such order flow to the Exchange. The changes are equitably allocated
and not unfairly discriminatory because all qualified ETP Holders are
eligible to submit (or not submit) displayed liquidity providing orders
of securities priced at least one dollar in AutoEx and Order Delivery
on the Exchange. The volume adjustments are reasonable methods to
incentivize the submission of such orders. All similarly situated
members are subject to the same fee structure, and access to the
Exchange is offered on terms that are not unfairly-discriminatory.
Volume-based take discounts in the form of market data rebates have
been historically widely adopted in the equities markets, and are
equitable because they are open to all members on an equal basis and
offer rebates that are reasonably related to the value of an exchange's
market quality associated with the requirements for the favorable
pricing tier. The Exchange notes that it operates in a highly
competitive market in which market participants can readily favor
competing venues if they deem fee levels at a particular venue to be
excessive. In such an environment, the Exchange must continually adjust
its fees to remain competitive with other market centers.

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

    The Exchange does not believe that the proposed rule change will
impose

any inappropriate burden on competition.

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

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

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

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act \8\ and subparagraph (f)(2) of Rule 19b-4
thereunder.\9\ At any time within 60 days of the filing of the proposed
rule change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \9\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-NSX-2012-07 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NSX-2012-07. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-NSX-2012-07 and should be
submitted on or before June 6, 2012.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
---------------------------------------------------------------------------

    \10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-11793 Filed 5-15-12; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 84, Number 202 (Friday, October 18, 2019)]
[Notices]
[Pages 55948-55949]
[FR Doc No: 2019-22786]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. AD19-19-000]

Grid-Enhancing Technologies; Supplemental Notice of Workshop

    As announced in the Notice of Workshop issued on September 9, 2019,
the Federal Energy Regulatory Commission (Commission) will convene a
staff-led workshop in the above-referenced proceeding on Tuesday,
November 5, 2019, from approximately 9:30 a.m. to 4:00 p.m., and
Wednesday, November 6, 2019, from approximately 9:00 a.m. to 12:45 p.m.
(Eastern Time). The workshop will be held at Commission headquarters,
888 First Street NE, Washington, DC 20426. The Chairman and
Commissioners may attend and participate.
    The purpose of this workshop is to discuss grid-enhancing
technologies that increase the capacity, efficiency, or reliability of
transmission facilities. Panelists and staff will discuss how grid-
enhancing technologies are currently used in transmission planning and
operations, the challenges to their deployment and implementation, and
what the Commission can do regarding those challenges, including
regulatory approaches such as incentives or requirements for the
adoption of grid-enhancing technologies. These technologies include,
but are not limited to: (1) Power flow control and transmission
switching equipment; (2) storage technologies; and (3) advanced line
rating management technologies. There will be an opportunity to submit
written comments after the workshop. A notice setting the date when
comments

are due will be issued after the workshop.
    The agenda and a list of participants for this workshop is
attached. The workshop will be open for the public to attend in person,
or to attend remotely via webcast. In-person attendees are encouraged
to register on-line at: http://www.ferc.gov/whats-new/registration/11-06-19-form.asp. In-person attendees should allow time to pass through
building security procedures before start time of the workshop.
Although there is no registration deadline for in-person attendees, we
strongly encourage attendees to register for the workshop as soon as
possible, in order to avoid any delay associated with being processed
by FERC security. Those who plan to attend the conference remotely via
webcast must register by 5:00 p.m. Eastern Time on October 29, 2019.
The webcast may not be available to those who do not register.
    Information on the workshop (including a link to the webcast) will
be posted on the Calendar of Events on the Commission's website, http://www.ferc.gov. The Capitol Connection provides technical support for
the webcasts and offers the option of listening to the conference via
phone-bridge for a fee. For additional information, visit
www.CapitolConnection.org or call<PHONE_NUMBER>. The workshop will be
transcribed. Transcripts will be available for a fee from Ace Reporting
(202-347-3700).
    Commission conferences are accessible under section 508 of the
Rehabilitation Act of 1973. For accessibility accommodations please
send an email to<EMAIL_ADDRESS>or call toll free (866) 208-
3372 (voice) or<PHONE_NUMBER> (TTY), or send a fax to<PHONE_NUMBER>
with the requested accommodations.
    For more information about this workshop, please contact:

Sarah McKinley (Logistical Information), Office of External Affairs,
(202) 502-8368<EMAIL_ADDRESS>Samin Peirovi (Technical Information), Office of Energy Policy and
Innovation,<PHONE_NUMBER><EMAIL_ADDRESS>
    Dated: October 11, 2019.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2019-22786 Filed 10-17-19; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register: March 26, 2009 (Volume 74, Number 57)]
[Proposed Rules]
[Page 13170-13171]
[DOCID:fr26mr09-36]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 62

[EPA-R09-OAR-2008-0942; FRL-8781-1]

Approval and Promulgation of State Air Quality Plans for
Designated Facilities and Pollutants; Control of Emissions From
Existing Other Solid Waste Incinerator Units; Arizona; Pima County
Department of Environmental Quality

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: EPA is proposing to approve a negative declaration submitted
by the

Pima County Department of Environmental Quality. The negative
declaration certifies that other solid waste incinerator units, which
are subject to the requirements of sections 111(d) and 129 of the Clean
Air Act, do not exist within the agency's air pollution control
jurisdiction.

DATES: Any comments on this proposal must arrive by April 27, 2009.

ADDRESSES: Submit comments, identified by docket number EPA-R09-OAR-
2008-0942, by one of the following methods:
    1. Federal eRulemaking Portal: http://www.regulations.gov. Follow
the on-line instructions.
    2. E-mail<EMAIL_ADDRESS>    3. Mail or deliver: Andrew Steckel (Air-4), U.S. Environmental
Protection Agency Region IX, 75 Hawthorne Street, San Francisco, CA
94105-3901.
    Instructions: All comments 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 Confidential Business Information (CBI) or
other information whose disclosure is restricted by statute.
Information that you consider CBI or otherwise protected should be
clearly identified as such and should not be submitted through http://
www.regulations.gov or e-mail. http://www.regulations.gov is an
``anonymous access'' system, and EPA will not know your identity or
contact information unless you provide it in the body of your comment.
If you send e-mail directly to EPA, your e-mail address will be
automatically captured and included as part of the public comment. 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.
    Docket: The index to the docket for this action is available
electronically at http://www.regulations.gov and in hard copy at EPA
Region IX, 75 Hawthorne Street, San Francisco, California. While all
documents in the docket are listed in the index, some information may
be publicly available only at the hard copy location (e.g., copyrighted
material), and some may not be publicly available in either location
(e.g., CBI). To inspect the hard copy materials, please schedule an
appointment during normal business hours with the contact listed in the
FOR FURTHER INFORMATION CONTACT section.

FOR FURTHER INFORMATION CONTACT: Mae Wang, EPA Region IX, (415) 947-
4124<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: This proposal addresses a Clean Air Act
section 111(d)/129 negative declaration submitted by the Pima County
Department of Environmental Quality certifying that other solid waste
incinerator units do not exist within its air pollution control
jurisdiction. This negative declaration was submitted on April 14,
2008. For further information, please see the information provided in
the direct final action, with the same title, that is located in the
``Rules and Regulations'' section of this Federal Register publication.
If no adverse comments are received in response to this action, no
further activity will be contemplated. If adverse comments are
received, then EPA will publish a timely withdrawal of the direct final
rule and address the comments in subsequent action based on this
proposed rule. Please note that if we receive adverse comment on an
amendment, paragraph, or section of this rule and if that provision may
be severed from the remainder of the rule, we may adopt as final those
provisions of the rule that are not the subject of an adverse comment.
EPA will not institute a second comment period. Any parties interested
in commenting on this action should do so at this time.

    Dated: February 18, 2009.
Jane Diamond,
Acting Regional Administrator, Region IX.
[FR Doc. E9-6626 Filed 3-25-09; 8:45 am]

BILLING CODE 6560-50-P


[Federal Register Volume 85, Number 66 (Monday, April 6, 2020)]
[Notices]
[Pages 19196-19198]
[FR Doc No: 2020-07084]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-88528; File No. SR-CBOE-2020-029]

Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
Rule 8.16 and Rule 9.2 To Temporarily Extend the Filing Requirements
for Certain Supervision-Related Reports, Currently Due April 1, 2020 to
June 1, 2020

March 31, 2020.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on March 30, 2020, Cboe Exchange, Inc. (``Exchange'') filed with the
Securities and Exchange Commission (``Commission'') the proposed rule
change as described in Items I and II below, which Items have been
prepared by the Exchange. The Exchange filed the proposal as a ``non-
controversial'' proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-4(f)(6) thereunder.\4\ The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------

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

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

    Cboe Exchange, Inc. (the ``Exchange'' or ``Cboe Options'') proposes
to amend Rule 8.16 and Rule 9.2 to temporarily extend the filing
requirements for certain supervision-related reports, currently due
April 1, 2020 to June 1, 2020. The text of the proposed rule change is
provided in Exhibit 5.
    The text of the proposed rule change is also available on the
Exchange's website (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at the Exchange's Office of the
Secretary, and at the Commission's Public Reference Room.

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

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

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

1. Purpose
    Given current market conditions, the Exchange proposes to provide
its Trading Permit Holders (``TPHs'') temporary relief from filing
certain supervision-related reports pursuant to Rule 8.16 (Supervision)
and Rule 9.2 (Supervision of Accounts).
    The Exchange has been closely monitoring the current situation
regarding the novel coronavirus (``COVID-19'') pandemic. The Exchange
understands COVID-19 has placed stress on market participants'
information technology infrastructure and the required deployment of
significant resources, including to implement and adapt business
continuity plans. Indeed, in response to the pandemic, the Exchange has
taken various actions to allow it to maintain fair and orderly markets,
including the closure of its trading floor, which currently remains
inoperable until further notice.\5\ The Exchange also notes that in
response to COVID-19, the Financial Industry Reporting Authority
(``FINRA'') recently issued temporary relief for member firms by, among
other things, extending the deadline for submitting their Annual
Reports and Financial and Operational Combined Uniform Single
(``FOCUS'') Reports,\6\ and other options exchanges have issued the
same temporary relief for their members regarding supervisory reports
as proposed herein.\7\
---------------------------------------------------------------------------

    \5\ See Tradedesk Update No. C2020031204 (March 12, 2020) Novel
Coronavirus Update, Trading Floor Closure.
    \6\ See FINRA Regulatory Notice 20-08 (March 9, 2020) available
at https://www.finra.org/rules-guidance/notices/20-08.
    \7\ See SR-ISE-2020-014 (filed March 27, 2020) available at
http://ise.cchwallstreet.com/contents/pdf/2020/SR-ISE-2020-14.pdf;
and SR-Phlx-2020-016 (filed March 27, 2020) available at http://nasdaqomxphlx.cchwallstreet.com/NASDAQPHLX/pdf/phlx-filings/2020/SR-Phlx-2020-16.pdf.
---------------------------------------------------------------------------

    Currently, (1) Rule 8.16(g)(2) provides that by April 1 of each
year each Trading Permit Holder shall submit to the Exchange written
report on the Trading Permit Holder's supervision and compliance effort
during the preceding year and on the adequacy of the Trading Permit
Holder's ongoing compliance processes and procedures,

(2) Rule 9.2(g) provides that by April 1 of each year each TPH
organization that conducts a non-Trading Permit Holder customer
business shall submit to the Exchange a written report on the TPH
organization's supervision and compliance effort during the preceding
year and on the adequacy of the TPH organization's ongoing compliance
processes and procedures, and (3) Rule 9.2 (h) provides that by April 1
of each year, each TPH organization shall submit a copy of the report
that paragraph (g) (of Rule 9.2) requires the TPH organization to
prepare to its one or more control persons or, if the TPH organization
has no control person, to the audit committee of its board of directors
or its equivalent committee or group. To meet the current April 1
deadlines in Rules 8.16 and 9.2, TPH personnel would have to divide
their efforts and resources that are otherwise necessary to address
ongoing disruptions and new stresses as a result of COVID-19. The
proposed rule change provides relief to TPHs and their employees by
extending these deadlines to June 1, 2020, thus allowing TPH personnel
that are tasked with organizing, compiling and filing such reports, but
are also tasked with maintaining critical operations, implementing
business continuity plans, and otherwise adjusting the TPH's trading
operations in line with evolving market conditions and initiatives to
address such conditions to focus their attention on those immediate
needs.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') the rules and
regulations thereunder applicable to the Exchange and, in particular,
the requirements of Section 6(b) of the Act.\8\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \9\ requirements that the rules of an exchange be
designed to prevent fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in regulating, clearing,
settling, processing information with respect to, and facilitating
transactions in securities, to remove impediments to and perfect the
mechanism of a free and open market and a national market system, and,
in general, to protect investors and the public interest. Additionally,
the Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \10\ requirement that the rules of an exchange not be
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(5).
    \10\ Id.
---------------------------------------------------------------------------

    In particular, the Exchange believes that the proposed rule will
foster cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
facilitating transactions in securities. The proposed rule change will
allow the Exchange to provide relief to its TPHs by extending certain
supervisory reporting deadlines from April 1, 2020 to June 1, 2020 in
light of the COVID-19 crisis. The Exchange understands this pandemic
has caused, and continues to cause, stress on market participants'
information technology infrastructure and the deployment of significant
resources to address ongoing disruptions and new stresses. By allowing
the Exchange to extend the deadlines for filing certain supervision
related reports in Rules 8.16 and 9.2, the Exchange believes the
proposed rule will allow TPH personnel, who would normally be tasked
with organizing and compiling such reports, to focus their attention on
maintaining critical operations, implementing business continuity
plans, and otherwise adjusting their trading operations in line with
evolving market conditions and initiatives in response to COVID-19. The
Exchange also believes the proposed rule change removes impediments to
and perfects the mechanism of a free and open market and a national
market system because, as noted above, other options exchanges have
recently filed with the Commission to extend the time for their members
to file supervision-related reports through June 1, 2020.\11\
---------------------------------------------------------------------------

    \11\ See supra note 7.
---------------------------------------------------------------------------

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

    The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The proposed rule change is
not intended to address competitive issues. The Exchange does not
believe the proposed rule would impose any burden on intramarket
competition that is not necessary or appropriate in furtherance of the
Act, because the June 1, 2020 extension for supervision-related reports
in Rules 8.16 and 9.2 will apply equally to all TPHs. The Exchange does
not believe that the proposed rule change would impose any burden on
intermarket competition because it relates only to the extension of the
filing deadline for supervision-related reports. Additionally, and as
stated above, other options exchange have recently filed to extend the
filing deadline for their members' supervision-related reports through
June 1, 2020.\12\
---------------------------------------------------------------------------

    \12\ See supra note 7
---------------------------------------------------------------------------

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

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

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

    Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \13\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\14\
---------------------------------------------------------------------------

    \13\ 15 U.S.C. 78s(b)(3)(A).
    \14\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
---------------------------------------------------------------------------

    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \15\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \16\ permits the
Commission to designate a shorter time if such action is consistent
with the protection of investors and the public interest. The Exchange
has requested that the Commission waive the 30-day operative delay so
that the proposed rule change may become operative upon filing. The
Commission notes that the proposed rule change would allow the
Exchange, in light of the COVID-19 pandemic, to provide temporary
relief for TPHs by extending the deadline for supervision-related
reports in Rules 8.16 and 9.2 from April 1, 2020 to June 1, 2020. The
Commission believes that waiver of the 30-day operative delay is
consistent with the protection of investors and the public interest.
Accordingly, the Commission hereby waives the operative delay and
designates the

proposed rule change operative upon filing.\17\
---------------------------------------------------------------------------

    \15\ 17 CFR 240.19b-4(f)(6).
    \16\ 17 CFR 240.19b-4(f)(6)(iii).
    \17\ For purposes only of waiving the 30-day operative delay,
the Commission also has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------

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

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-CBOE-2020-029 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-CBOE-2020-029. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549 on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-CBOE-2020-029 and should be submitted on
or before April 27, 2020.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
---------------------------------------------------------------------------

    \18\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-07084 Filed 4-3-20; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register: March 6, 2009 (Volume 74, Number 43)]
[Notices]
[Page 9857-9859]
[DOCID:fr06mr09-68]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-59478; File No. SR-NYSEALTR-2009-19]

Self-Regulatory Organizations; NYSE Alternext US, LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change Amending
Schedule of Fees and Charges for Exchange Services

February 27, 2009.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that, on February 27, 2009, NYSE Alternext US, LLC (``NYSE Amex
Options'', ``NYSE Amex'', or the ``Exchange'') filed with the
Securities and Exchange Commission (the ``Commission'') the proposed
rule change as described in Items I, II, and III below, which Items
have been substantially prepared by the self-regulatory organization.
The Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------

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

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

    The Exchange proposes to amend its Schedule of Fees and Charges for
Exchange Services. The text of the proposed rule change is available on
the Exchange's Web site at http://www.nyse.com, at the Exchange's
principal office and at the Commission's Public Reference Room.

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

    In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries,

set forth in sections A, B, and C below, of the most significant parts
of such statements.

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

1. Purpose
    In conjunction with the migration of the NYSE Amex Options trading
floor from 86 Trinity Place to the NYSE facility at 11 Wall Street,
NYSE Amex Options is proposing to introduce a new Schedule of Fees and
Charges for Exchange Services (``Fee Schedule''). The new Fee Schedule
will become operative on the first day of trading on the new NYSE Amex
Options trading floor at 11 Wall Street, currently scheduled for March
2, 2009. The Exchange proposes deleting the current NYSE Amex Options
Price List in its entirety and replacing it with the Fee Schedule. The
proposed fees are generally lower than the current charges, and are
allocated equitably to all similarly situated members. A more detailed
description of the proposed changes follows.
ATP Trading Participant Rights
    The Exchange proposes charging Floor Brokers, Order Routing firms
and Clearing firms $500.00 per month for trading rights on NYSE Amex
Options. Prior to the merger with NYSE Euronext on October 1, 2008,
participation charges on the American Stock Exchange (``Amex'') were
based on the cost of a seat membership or seat lease plus additional
fees for electronic access and/or access to the trading floor. The
Exchange proposes significant reductions to the previous charges for
participation. Market Makers will be charged $1,000.00 per month based
on the maximum number of ATPs held by an ATP Holder during the calendar
month. The Exchange also proposes charging $125.00 per month for all
registered floor personnel that do not pay an ATP fee. Specialists, e-
Specialists, and Directed Order Market Makers (``DOMM'') will be
charged a monthly fee ranging from $150.00 to $3000.00 based on the
average number of national daily customer contracts executed and
prorated according to Specialist, e-Specialist and DOMM volumes in that
issue.
Options Issue Transfer Fee
    The Exchange proposes charging $100.00 per issue charged to the
Specialist that transfers an issue to another Specialist.
Options Orientation Fee
    The Exchange proposes a $500.00 Options Orientation Fee. This fee
covers the full background investigation, disclosure review, and
fingerprinting fee for each individual applicant, along with the
administration and maintenance costs associated with the qualification
exams.
Registration Fees
    The Exchange proposes only presentation changes to the Registration
Fees section of the Fee Schedule. All fees in this section are
identical to the fees currently charged and posted on the NYSE Amex
Options Price List. Registration fees will continue to be waived
through June 30, 2009 for NYSE member organizations that automatically
became member organizations of NYSE Alternext U.S. by operation of NYSE
Alternext Equities Rule 2 at the time of relocation of all NYSE
Alternext equities trading to the to the NYSE trading facilities and
systems located at 11 Wall Street.
DEA Fees
    The Exchange proposes the following fees for firms for which the
Exchange is the Designated Examining Authority (``DEA''). A $1,000
monthly fee charged to clearing firms engaging in a public business. An
exemption from this fee will be granted to any NYSE Amex Options
registered Floor Broker or Market Maker that effects at least 25% of
all options transactions, as measured in contract volume, on any
options trading facility of NYSE Alternext US, LLC. The Exchange
proposes charging $275.00 per quarter to firms not engaging in a public
business, and $250.00 annually per trader. An exemption from the
$250.00 annual fee per trader will be granted to any NYSE Amex Options
registered Floor Broker or Market Maker that effects [0]at least 25% of
all options transactions, as measured in contract volume, on any
options trading facility of NYSE Alternext US, LLC. The Exchange also
proposes a new Regulatory Fee of $100 charged annually for FOCUS
filings to ATP Firms for which the Exchange is the DEA. Previously, the
Exchange based its DEA fees on a complicated calculation that charged
$.00040 per dollar gross per quarterly or annual FOCUS report. The
Exchange believes this new DEA fee structure significantly simplifies
the existing fee structure.
Statutory Disqualification Fees
    The Exchange proposes a $2,000 fee for applications resulting in
statutory disqualification proceedings.
Trade Related Charges
    Options per contract transaction charges will reflect the following
rate schedule:

------------------------------------------------------------------------
                                                               Rate per
                         Order type                            contract
------------------------------------------------------------------------
Specialists, eSpecialists..................................        $0.10
NYSE Amex Options Market Maker--Non Directed...............         0.17
NYSE Amex Options Market Maker--Directed...................         0.15
Broker Dealer & Firm Electronic............................         0.50
Broker Dealer & Firm Manual................................         0.26
Non BD Customer Electronic.................................         0.00
Non BD Customer Manual.....................................         0.00
Firm Facilitation--Manual..................................         0.15
------------------------------------------------------------------------

    The Firm Facilitation fee applies to any transaction involving a
firm proprietary trading account, that has a customer of that same Firm
on the contra side of the transaction.
    At this time the Exchange will not charge a cancellation fee. The
Exchange intends to charge a cancellation fee in the future via a
separate rule filing.
    The Exchange proposes a limit of fees on options strategy
executions. A $750 cap will be applied on transaction fees for strategy
executions involving (a) reversals and conversions, (b) dividend
spreads, (c) box spreads, (d) short stock interest spreads, and (e)
merger spreads. The cap applies to each Strategy Execution executed on
the same trading day in the same option class. Transaction fees for
strategy executions are further capped at $25,000.00 per month per
initiating firm. All Royalty Fees associated with strategy executions
on index and exchange traded funds will be passed through to trading
participants on the strategy executions on a pro-rata basis. These
Royalty Fees will not be included in the calculation of the $750 per
trade cap or the $25,000 per month strategy fee cap.
    The Exchange proposes a Marketing Charge of $0.65 per contract side
on transactions in non Penny Pilot issues where Market Makers trade
against all electronic customer orders, and $0.25 per contract side on
transactions in Penny Pilot issues where Market Makers trade against
all electronic customer orders. This fee is collected only on
electronic customer orders that are executed against a market maker on
the contra side. This fee represents a pass-through fee for payment for
order flow. The Exchange collects the Marketing Fee from the ATP Holder
and passes it through to the Specialist, e-Specialist, or Directed
Market Maker for distribution to order flow providers.
    The Exchange proposes Royalty Fees reflected in the following
schedule:

MNX, NDX.......................................................    $0.16
Russell 2000 Index (RUT).......................................     0.15
ISE FX--Foreign Currency Options...............................     0.10
(BPX, CDD, EUI, YUK, AUX, SFC).................................
All other premium products, ETFs...............................     0.00

    Royalty Fees will be assessed on a per contract basis for firm,
broker/dealer, and Market Maker transactions. Customer volumes will not
be subject to any royalty fees, license fees or premium product fees of
any type. These fees will not be assessed on the customer side of
transactions. Royalty Fees apply to Linkage Orders except for
Satisfaction Orders.
Floor and Equipment Fees
    The Exchange proposes charging a Floor Broker Hand Held fee of
$450.00 per device per month. Hand Held devices are used by Floor
Brokers in open outcry trading for order entry and order management.
    The Exchange proposes charging a Floor Market Maker Podium Fee of
$90.00 per Podium per month for each Market Maker. A Podium is a table
top space provided to a Market Maker on the floor.
    The Exchange proposes a Floor Booth fee of $150.00 per month. Floor
Booths are designated space used by Floor Brokers. Previously, an
annual fee of $3,500.00 was charged for a Regular Floor Booth,
$4,500.00 for a Standard Floor Booth, $6,000 for a Large Floor Booth,
and $7,000.00 for a Machine Floor Booth.
    The Exchange proposes charging a Telephone Service Charge of $0.16
on toll calls billed by vendor of less than $0.69, and $0.26 on toll
calls of greater than or equal to $0.69.
    The Exchange proposes a Cellular Phone fee of $20.00 per month plus
the cost of the calling plan of the user's choice.
    The Exchange proposes a Booth Telephone System Line Charge of
$33.33 per phone number per month, and a $10.75 charge per month for a
single line phone jack and data jack.

Connectivity Charges

    The Exchange proposes Transport Charges of $150 per month per floor
participant connection as required. This fee will be capped at $500 per
month per floor broker firm. The Transport Charge is designed to cover
the cost to the Exchange for installing network cabling and rack space
for outside data lines, along with the costs of maintaining the data
center and hub for the Exchange floor.
    The Exchange proposes a Login Fee of $150 per month per Exchange
sponsored broker dealer entry system. The Login Fee is designed to
cover the cost per login charged by data vendors for access to the
Floor Broker order capture system.

Report Fees

    The Exchange proposes a User Activity Extract Fee of $0.0075 per
trade for clearing data. This fee is in addition to any report
development and set-up costs. The Exchange also proposes a $500 per
month Online Data Extract fee that allows unlimited access and
downloads of clearing data.
2. Statutory Basis
    The Exchange believes that the proposal is consistent with Section
6(b) of the Act, in general, and Section 6(b)(4), in particular, in
that it provides for the equitable allocation of dues, fees and other
charges among its members and other market participants that use the
trading facilities of NYSE Amex Options. Under this proposal, all
similarly situated members and other Exchange participants of NYSE Amex
Options will be charged the same reasonable dues, fees and other
charges.

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

    The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.

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

    No written comments were solicited or received with respect to the
proposed rule change.

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

    The proposed rule change is effective upon filing pursuant to
Section 19(b)(3)(A)(ii) of the Act and SEC Rule 19b-4(f)(2) thereunder
in that it establishes or changes a due, fee, or other charge imposed
only on members by the self-regulatory organization.
    At any time within 60 days of the filing of the proposed rule
change, the Commission may summarily abrogate such rule change if it
appears to the Commission that such action is necessary or appropriate
in the public interest, for the protection of investors, or otherwise
in furtherance of the purposes of the Act.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to<EMAIL_ADDRESS>Please include
File Number SR-NYSEALTR-2009-19 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NYSEALTR-2009-19. This
file number should be included on the subject line if e-mail is used.
To help the Commission process and review your comments more
efficiently, please use only one method. The Commission will post all
comments on the Commission's Internet Web site (http://www.sec.gov/
rules/sro.shtml). Copies of the submission, all subsequent amendments,
all written statements with respect to the proposed rule change that
are filed with the Commission, and all written communications relating
to the proposed rule change between the Commission and any person,
other than those that may be withheld from the public in accordance
with the provisions of 5 U.S.C. 552, will be available for inspection
and copying in the Commission's Public Reference Room on official
business days between the hours of 10 a.m. and 3 p.m. Copies of such
filing also will be available for inspection and copying at the
principal office of the Exchange. All comments received will be posted
without change; the Commission does not edit personal identifying
information from submissions. You should submit only information that
you wish to make available publicly. All submissions should refer to
File Number SR-NYSEALTR-2009-19 and should be submitted on or before
March 27, 2009.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\4\
---------------------------------------------------------------------------

    \4\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-4785 Filed 3-5-09; 8:45 am]

BILLING CODE 8011-01-P


[Federal Register Volume 79, Number 72 (Tuesday, April 15, 2014)]
[Notices]
[Pages 21319-21321]
[FR Doc No: 2014-08413]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-71910; File No. SR-OCC-2014-07]

Self-Regulatory Organizations; The Options Clearing Corporation;
Notice of Filing of Proposed Rule Change To Eliminate Preferred Stock
and Corporate Bonds as Acceptable Forms of Margin Assets and Make
Additional, Conforming, Rule Changes

April 9, 2014.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on March 28, 2014, The Options Clearing Corporation (``OCC'') filed
with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I and II below, which Items
have been prepared by OCC. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------

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

I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change

    OCC proposes to amend its Rules to eliminate preferred stock and
corporate bonds as acceptable forms of margin assets. OCC is also
proposing additional amendments to eliminate a provision that
automatically renders a common stock as ineligible for deposit if it is
subject to special margin requirements under the rules of the listing
market, and to also eliminate certain provisions from the Rules that
will no longer be applicable upon the elimination of preferred stock as
an acceptable form of margin asset.

II. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change

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

(A) Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change

(1) Purpose
    The principal purpose of this proposed rule change is to amend
OCC's Rule 604(b)(4) (the ``Rule'') to eliminate preferred stock and
corporate bonds as acceptable forms of margin assets. Other changes
also are proposed to the Rule in order to update its terms and
provisions to reflect current practices with respect to the deposit of
assets (i.e., common stock, including fund shares and index linked-
securities, which are collectively referred to as ``common stock'')
that will continued to be covered by the Rule on the approval of this
proposed rule change.
Background
    OCC historically has sought to permit clearing members to deposit
as margin a diverse mix of assets, subject to the application of
prudent safeguards designed to ensure such assets present limited
credit, market and liquidation risk, as applicable. OCC Rule 604 sets
forth the forms of assets eligible to be deposited as margin and
conditions that must be satisfied in order for margin credit to be
given to such deposits. Eligible forms of margin assets presently

are: Cash, Government securities,\3\ GSE Debt Securities, money market
fund shares, letters of credit, common stock (including fund shares),
corporate bonds and preferred stock. Since 1988, OCC has been
authorized to accept preferred stock and corporate bonds as margin.\4\
OCC recently reviewed its current practices with respect to these two
asset types and, for the reasons discussed below, determined they
should no longer be accepted as a form of margin.
---------------------------------------------------------------------------

    \3\ OCC defines the term ``Government securities'' to mean
securities issued or guaranteed by the United States or Canadian
Government, or by any other foreign government acceptable to the
Corporation, except Separate Trading of Registered Interest and
Principal Securities issued on Treasury Inflation Protected
Securities (commonly called TIP-STRIPS). See OCC By-Laws Article I,
Section 1(G)(5).
    \4\ See Securities Exchange Act Release No. 29576 (August 16,
1991), 56 FR 41873 (August 23, 1991), (SR-OCC-88-03).
---------------------------------------------------------------------------

Review of Preferred Stock and Corporate Bonds
    Preferred stock and corporate bonds (on a combined basis)
consistently have accounted for less than one percent of the margin
assets on deposit at OCC. Corporate bonds have not been deposited as
margin, nor have clearing members attempted to deposit corporate bonds
as margin, since March 2012. As of March 6, 2014, preferred stock
comprised .13% of OCC's total margin deposits and less than five
percent of any individual clearing member's margin deposits.
    OCC presently uses a manual process to review the valuation
methodology for preferred stocks and corporate bonds. Such review
process occurs monthly and contemplates: (1) Adequacy of haircuts, (2)
volume, and (3) price transparency. While OCC believes this review
process is adequate, OCC has concluded it is less robust than the
process applied to deposits of common stocks. In comparison, OCC uses
STANS, its daily automated Monte Carlo simulation-based margining
methodology, to value and risk manage common stocks deposited as margin
collateral.\5\ STANS calculates haircuts that are regularly tested,
taking into account stressed market conditions.
---------------------------------------------------------------------------

    \5\ OCC also uses STANS to value Government securities with the
exception of TIPS and Canadian Government securities, which are
valued using the haircuts set forth in OCC Rule 604.
---------------------------------------------------------------------------

    OCC researched the work necessary to integrate preferred stock and
corporate bonds into STANS and otherwise automate monitoring and
controls as they relate to risk managing these asset types. Given their
general lack of utilization as margin collateral, OCC determined that
it would be inefficient and ineffective from a cost perspective to
expend the significant time, resources and expense needed to complete
the required systems development to automate monitoring and assessment
processes for these asset types. OCC also concluded that the continued
use of its current manual processes may not be fully consistent with
Principle 5 of the CPSS-IOSCO Principles for Financial Market
Utilities.\6\ OCC is therefore proposing to stop accepting preferred
stock and corporate bonds as forms of margin assets and to remove
provisions from the Rule pertaining to the deposit of these asset
types. OCC notes that after giving effect to this proposed rule change,
a varied mix of asset types would still be available to clearing
members for deposit as margin.\7\
---------------------------------------------------------------------------

    \6\ Principle 5 provides that margin collateral accepted by a
financial market infrastructure (``FMI'') should have low credit,
liquidity and market risk and should establish prudent valuation
practices and develop haircuts that are regularly tested, taking
into account stressed market conditions.
    \7\ OCC discussed this proposal with the Financial Risk Advisory
Committee, a working group consisting of representatives of clearing
members and exchanges that was formed by OCC to review and comment
on risk management proposals under consideration. No concerns were
raised by the group during the course of such discussions.
---------------------------------------------------------------------------

Additional Revisions
    In connection with reviewing the Rule for the purposes described
above, and in order to conform the Rule to current operational
practices after giving effect to the proposed rule change, OCC also
reassessed the remaining provisions of this Rule as applied to OCC's
practices for accepting common stock, the form of margin asset that the
Rule would continue to address after Commission approval of this rule
filing. As a result of such review, OCC is proposing several additional
changes to the Rule. OCC proposes to eliminate a provision that
automatically renders a common stock as ineligible for deposit if it is
subject to special margin rules under the rules of the listing market.
OCC believes that it is not an efficient use of resources to monitor
listing markets to determine if a common stock becomes subject to
special margin rules. OCC also believes it is currently able to
effectively risk manage common stocks that may become subject to
special margin rules through existing STANS functionality.
Additionally, OCC notes that it may act under Rule 604, Interpretation
and Policy .14, to restrict deposits of issues that are subject to
special margin rules by a listing market.
    Moreover, as a result of the proposed elimination of preferred
stock as a form of margin asset, OCC proposes conforming changes to
remove provisions of the Rule that: (i) Limit the amount of margin
credit of any single issue to 10% of the market value of margin
deposited by Clearing Member because additional charges for
concentrated positions are determined under STANS pursuant to Rule 601,
and (ii) limit margin credit given to deposits to 70% of daily closing
bid prices because haircuts applied to common stock deposits are
determined under STANS pursuant to Rule 601.\8\ Also, a provision would
be added to make explicit that common stock deposits are valued in
accordance with Rule 601.\9\
---------------------------------------------------------------------------

    \8\ OCC has integrated common stocks into the process by which
OCC calculates margin requirements using STANS. See Securities
Exchange Act Release No. 58158 (July 15, 2008), 73 FR 42646 (July
22, 2008), (SR-OCC-2007-20).
    \9\ Id.
---------------------------------------------------------------------------

Implementation
    OCC has advised its clearing members of its intent to eliminate the
acceptance of preferred stock and corporate bonds, subject to
regulatory approval. Because corporate bonds have not been deposited as
margin since March 2012 and are not currently deposited for such
purposes, OCC requested clearing members to voluntarily not deposit
such asset type pending regulatory approval of this rule filing. OCC
further has discussed this planned change with those clearing members
maintaining preferred stock as a form of margin deposit and has worked
with them to ensure each has developed an appropriate plan to wind down
its use of such deposits in light of this proposal. No concerns were
raised by clearing members with respect to the elimination of preferred
stock and OCC does not anticipate any delay in the implementation of
this proposed rule change upon regulatory approval. A final Information
Memorandum will be issued once this proposed rule change is eligible to
be implemented and OCC will modify its system to prohibit clearing
members from depositing preferred stock and corporate bonds as margin
collateral thereafter.
(2) Statutory Basis
    OCC believes that the proposed rule change is consistent with
Section 17A(b)(3)(F) of the Act \10\ because it promotes the prompt and
accurate clearance and settlement of securities transactions for which
it is responsible. OCC believes that the proposed elimination of
preferred stocks and corporate bonds as acceptable forms of margin is
consistent with the Act because these assets are subject to a manual
valuation process, not OCC's

automated STANS system. STANS provides more expeditious and accurate
margin calculations than a manual process. As such, investors and the
public will be more confident that OCC will be able to meet its daily
settlement obligations because the possibility that clearing member
margin deposits would be insufficient should OCC need to use them to
complete a settlement will be reduced since margin in the form of
preferred stock and corporate bonds valued through a manual process
will no longer be permitted. Additionally, OCC will be better able to
determine the sufficiency of its margin deposits at any given time
since manually valued margin forms of assets, consisting of preferred
stock and corporate bonds, will be eliminated. The proposed rule change
is not inconsistent with any rules of OCC, including any other rules
proposed to be amended.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------

(B) Clearing Agency's Statement on Burden on Competition

    OCC does not believe that the proposed rule change would impact, or
impose a burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act.\11\ Changes to the rules of a
clearing agency may have an impact on the participants in a clearing
agency, their customers, and the markets that the clearing agency
serves. This proposed rule change affects certain clearing members and
their customers inasmuch as it eliminates two forms of assets eligible
for deposit as margin. However, as stated above, corporate bonds have
not been deposited as margin since March 2012 and preferred stock
comprises .13% of OCC's total margin deposits and less than five
percent of the margin deposits of any individual clearing member.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78q-1(b)(3)(I).
---------------------------------------------------------------------------

    OCC believes it would be inefficient and ineffective from a cost
perspective to expend significant time, resources and expense needed to
complete the required systems work to automate monitoring and
assessment processes for these asset types in light of their limited
usage over time. Moreover, OCC will continue to accept multiple forms
of assets from clearing members to meet margin requirements and, based
on the quantitative measures concerning clearing member usage of
preferred stocks and corporate bonds set forth above, OCC does not
believe that the proposed rule change will materially impact users of
its services.
    For the foregoing reasons, OCC believes that the proposed rule
change is in the public interest, would be consistent with the
requirements of the Act applicable to clearing agencies, and does not
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.

(C) Clearing Agency's Statement on Comments on the Proposed Rule Change
Received From Members, Participants, or Others

    Written comments on the proposed rule change were not and are not
intended to be solicited with respect to the proposed rule change and
none have been received.

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

    Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period up to 90 days (i) as the
Commission may designate if it finds such longer period to be
appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
    (A) By order approve or disapprove such proposed rule change, or
    (B) institute proceedings to determine whether the proposed rule
change should be disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-OCC-2014-07 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-OCC-2014-07. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549-1090 on official business days between the hours
of 10:00 a.m. and 3:00 p.m. Copies of the filing also will be available
for inspection and copying at the principal office of OCC and on OCC's
Web site: http://www.theocc.com/components/docs/legal/rules_and_bylaws/sr_occ_14_07.pdf.
    All comments received will be posted without change; the Commission
does not edit personal identifying information from submissions. You
should submit only information that you wish to make available
publicly. All submissions should refer to File Number SR-OCC-2014-07
and should be submitted on or before May 6, 2014.
---------------------------------------------------------------------------

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

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-08413 Filed 4-14-14; 8:45 am]
BILLING CODE 8011-01-P