[Federal Register Volume 79, Number 33 (Wednesday, February 19, 2014)]
[Notices]
[Pages 9512-9515]
[FR Doc No: 2014-03574]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-71549; File No. SR-OCC-2014-801]

Self-Regulatory Organizations; The Options Clearing Corporation;
Notice of Filing of Advance Notice of and No Objection to an Amendment
to The Options Clearing Corporation's Unsecured, Committed Credit
Agreement

February 12, 2014.
    Notice is hereby given that, on January 14, 2014, The Options
Clearing Corporation (``OCC'') filed an advance notice with the
Securities and Exchange Commission (``Commission'') pursuant to Section
806(e)(1)(A) of Title VIII of the Dodd-Frank Wall Street Reform and
Consumer Protection Act, entitled the Payment, Clearing, and Settlement
Supervision Act of 2010 (``Clearing Supervision Act''),\1\ and Rule
19b-4(n)(1)(i) of the Securities Exchange Act of 1934 (``Exchange
Act'').\2\ The advance notice is described in Items I, II, and III
below, which Items have been prepared by OCC. The Commission is
publishing this notice to solicit comments from interested persons, to
issue a non-objection to the changes set forth in the advance notice,
and to authorize OCC to implement those changes earlier than 60 days
after the filing of the advance notice.
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    \1\ 12 U.S.C. 5465(e)(1)(A). The Financial Stability Oversight
Council designated OCC a systemically important financial market
utility on July 18, 2012. See Financial Stability Oversight Council
2012 Annual Report, Appendix A, http://www.treasury.gov/initiatives/fsoc/Documents/2012%20Annual%20Report.pdf. Therefore, OCC is
required to comply with Title VIII of the Dodd-Frank Wall Street
Reform and Consumer Protection Act.
    \2\ 17 CFR 240.19b-4(n)(1)(i).

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I. Clearing Agency's Statement of the Terms of Substance of the Advance
Notice

    This advance notice concerns a proposed change to OCC's operations
(the ``Change'') in the form of an amendment to its unsecured,
committed credit agreement (the ``Existing Agreement'' or the
``Existing Facility'').
    The Commission previously published a notice of no objection to
OCC's advance notice filing through which OCC entered into the Existing
Facility.\3\ The Existing Facility currently provides OCC with access
to additional liquidity for working capital needs and general corporate
purposes. The Existing Facility also helps OCC satisfy the liquidity
requirement of the Commodity Futures Trading Commission's (``CFTC'')
regulation Section 39.11(e)(2). The Existing Facility is scheduled to
terminate on February 21, 2014. The Change would extend the termination
date of the Existing Facility for 364 days after the renewal date,
increase the commitment amount of the Existing Facility from $25
million to $35 million, and make minor, non-material, changes to the
terms of the Existing Facility requested by the lender (the ``Extended
Agreement'' or the ``Extended Facility'').
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    \3\ Securities Exchange Act Release No. 34-68935 (February 13,
2013), 78 FR 12121 (February 21, 2013), (SR-OCC-2012-801).
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II. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Advance Notice

    In its filing with the Commission, OCC included statements
concerning the purpose of and basis for the advance notice and
discussed any comments it received on the advance notice. 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) and (B)
below, of the most significant aspects of these statements.

(A) Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Advance Notice

Description of Change
    The Change would provide OCC with continued access to an unsecured,
committed credit facility in an aggregate principal amount of $35
million until early 2015. The Extended Facility is designed to provide
OCC with access to additional liquidity for working capital needs and
general corporate purposes. The Extended Facility would also satisfy
the liquidity requirement of CFTC regulation Section 39.11(e)(2).
    OCC's principal reason for entering into the Extended Facility is
to provide OCC additional flexibility in managing its liquid assets
while ensuring continued compliance with the liquidity requirements of
the CFTC regulation cited above. Among other things, CFTC regulation
Section 39.11(a)(2) requires a derivatives clearing organization
(``DCO'') to hold an amount of financial resources that, at a minimum,
exceeds the total amount that would enable the DCO to cover its
operating costs for a period of at least one year, calculated on a
rolling basis.\4\ In addition, CFTC regulation Section 39.11(e)(2)
provides that these financial resources must include unencumbered,
liquid financial assets (i.e., cash and/or highly liquid securities),
equal to at least six months' operating costs and that if any portion
of such financial resources is not sufficiently liquid, the DCO may
rely on a committed line of credit or similar facility.\5\ Accordingly,
OCC entered into the Existing Facility with BMO Harris Bank N.A.
(``Lender'') having a maximum aggregate principal loan amount not to
exceed $25 million. OCC now proposes to enter into an amendment to the
Existing Facility to increase the maximum aggregate principal loan
amount to $35 million, extend the termination date to February 20,
2015, and make other non-material changes requested by the Lender.
Attached to this filing as Exhibit 3B is a marked Summary of Terms and
Conditions that are applicable to the Extended Facility.\6\ The marked
Summary of Terms and Conditions show the changes from the Summary of
Terms and Conditions applicable to the Existing Facility.\7\
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    \4\ 17 CFR 39.11(a)(2).
    \5\ 17 CFR 39.11(e)(2).
    \6\ As OCC has requested confidential treatment of Exhibit 3B
pursuant to 17 CFR 240.24b-2, Exhibit 3B will not be attached to the
published version of this notice.
    \7\ SR-OCC-2012-801, See Fn. 3 above. Other than as described in
this Section II.A., the differences between the Existing Facility
and the Extended Facility (that appear in the comparison attached to
this filing as Exhibit 3) are non-material. As OCC has requested
confidential treatment of Exhibit 3 pursuant to 17 CFR 240.24b-2,
Exhibit 3 will not be attached to the published version of this
notice.
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    In order to have continued access to the Existing Facility, OCC
must execute an amendment to the Existing Agreement between OCC and the
Lender. Ongoing conditions governing OCC's ability to access the
Extended Facility would be the same as with the Existing Facility and
would include that no default or event of default may exist before or
during an extension of credit by the Lender to OCC through the Extended
Facility and that certain representations of OCC must remain true and
correct. Events of default would include, but not be limited to,
failure to pay any interest, principal, fees or other amounts when due,
default under any covenant or agreement in any loan document,
repudiation or cessation of the effectiveness of any loan document,
materially inaccurate or false representations or warranties, cross
default with other material debt agreements, insolvency, bankruptcy and
unsatisfied judgments.
    The Extended Facility would be available to OCC on a revolving
basis for a 364-day term. Upon written or telephonic notice by OCC to
the Lender of a request for funds, the Lender would disburse loaned
funds to OCC in U.S. dollars. The date of any loan would be required to
be a business day and the loans would be unsecured and made and
evidenced by a promissory note provided by OCC. Under the Extended
Facility, any loan proceeds would be required to be used by OCC to
finance its working capital needs or for OCC's general corporate
purposes.
    As with the Existing Facility, OCC would have the ability to
terminate the Extended Facility at any time. Termination within the
first six months of the Extended Facility would trigger a termination
fee. After six months from the date of entering the Extended Agreement
with the Lender to establish the terms of the Extended Facility, OCC
would be permitted to cancel the Extended Facility with no termination
fee. Upon five days written notice during the term of the Extended
Facility, OCC would also be permitted to reduce the overall size of the
Extended Facility at any time. Any such reductions would be required to
be made in an initial amount of at least $2.5 million. Thereafter,
reductions would be able to be made by OCC in multiples of $1 million.
In no event, however, would OCC be permitted to reduce the size of the
Extended Facility to an amount that is less than the greater of either
its aggregate principal amount of indebtedness outstanding with respect
to loans from the Extended Facility or $15 million.
    The outstanding principal balance of all loans made to OCC through
the Extended Facility will accrue interest equal to a base rate
(generally equal to a Prime Rate, a Federal Funds Rate, or a LIBOR
rate), as in effect from time to time, plus a certain applicable
margin. Regardless of which method applies to a particular portion of
OCC's total outstanding loan balance, in an event of a default, the
calculation of the amount of interest would be subject a 2.00%

increase above the otherwise applicable rate.
    The Extended Facility would involve a variety of customary fees
payable by OCC to the Lender, including but not limited to: (1) A one-
time upfront fee payable at closing to the Lender calculated as a
percentage of the total commitment amount of the Extended Facility; (2)
commitment fees payable quarterly in arrears on the average daily
unused amount of the Extended Facility; (3) reasonable out-of-pocket
costs and expenses of the Lender in connection with the negotiation,
preparation, execution and delivery of the Extended Facility and loan
documentation, and costs and expenses in connection with any default,
event of default or enforcement of the Extended Facility; and (4)
termination fees if OCC elects to terminate the Extended Facility prior
to six months from the date of the credit agreement underlying the
Extended Facility.
Anticipated Effect on and Management of Risk
    Overall, the Extended Facility would reduce the risks to OCC, its
clearing members and the options market in general because it would
provide OCC with additional liquidity for working capital needs and
general corporate purposes and thereby assist OCC in satisfying the
CFTC's requirements with respect to liquidity under CFTC regulation
Section 39.11.
    Like any lending arrangement, the Extended Facility would involve
risks. One of the primary risks to OCC associated with the Extended
Facility is the risk that the Lender would fail to fund when OCC
requests a loan, because of the Lender's insolvency, operational
deficiencies, or otherwise. Even if OCC were to draw on the Extended
Facility for liquidity purposes, which it does not anticipate, OCC
believes the potential funding risk associated with the Extended
Facility is mitigated in several ways. First, the Lender would be a
national banking association that is subject to oversight by prudential
banking regulators with respect to its safety and soundness and its
ability to meet its lending obligations. Furthermore, the $35 million
maximum size of the Extended Facility would be relatively small when
compared to the total resources available to OCC. Therefore, if the
Extended Facility proved unavailable to OCC for any reason, OCC
believes it readily would be able to access, or arrange for access, to
other sources of liquidity if necessary.
    A second risk associated with the Extended Facility is the risk
that OCC would default on its obligation to make timely payment of
principal or interest. Because the Extended Facility would be an
unsecured lending arrangement, OCC would not be at risk in an event of
default of the Lender's potentially liquidating OCC assets that are
used to secure loaned funds. Furthermore, OCC intends to mitigate the
risk of default by never drawing on the Extended Facility.
Accelerated Commission Action Requested
    Pursuant to Section 806(e)(1)(I) of Title VIII of the Clearing
Supervision Act, OCC requests that the Commission notify OCC that it
has no objection to the Change no later than February 14, 2014, which
is one week prior to the February 21, 2014 termination date of the
Existing Facility. OCC requests Commission action one week in advance
of the effective date to ensure that there is no period of time that
OCC operates without access to additional liquidity for working capital
needs and general corporate purposes, and to satisfy the liquidity
requirements of CFTC regulation Section 39.11(e)(2).

(B) Clearing Agency's Statement on Comments on the Advance Notice
Received From Members, Participants or Others

    Written comments on the advance notice were not and are not
intended to be solicited with respect to the advance notice and none
have been received.

III. Date of Effectiveness of the Advance Notice and Timing for
Commission Action

    The advance notice may be implemented if the Commission does not
object to the advance notice within 60 days of the later of (i) the
date that the advance notice was filed with the Commission or (ii) the
date that any additional information requested by the Commission is
received. OCC shall not implement the advance notice if the Commission
has any objection to the advance notice.
    The Commission may extend the period for review by an additional 60
days if the advance notice raises novel or complex issues, subject to
the Commission providing OCC with prompt written notice of the
extension. An advance notice may be implemented in less than 60 days
from the date the advance notice is filed, or the date further
information requested by the Commission is received, if the Commission
notifies OCC in writing that it does not object to the advance notice
and authorizes OCC to implement the advance notice on an earlier date,
subject to any conditions imposed by the Commission.
    The clearing agency shall post notice on its Web site of proposed
changes that are implemented.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and
arguments concerning the foregoing. 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-2014-801 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-OCC-2014-801. 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 of submission. 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 advance notice that are
filed with the Commission, and all written communications relating to
the advance notice 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 Section, 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 OCC and
on OCC's Web site at http://www.theocc.com/components/docs/legal/rules_and_bylaws/sr_occ_14_801.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-2014-801
and should be submitted on or before March 12, 2014.

V. Commission's Findings and Notice of No Objection

    Section 806(e)(1)(G) of the Clearing Supervision Act provides that
a designated financial market utility may implement a change if it has
not received an objection from the Commission within 60 days of the
later of (i) the date that the Commission receives notice of the
proposed change or (ii) the date the Commission receives any further
information it requests for consideration of the notice. A designated
financial market utility may implement a proposed change in less than
60 days from the date of receipt of the notice of the change by the
Commission, or the date the Commission receives any further information
it requested, if the Commission notifies the designated financial
market utility in writing that it does not object to the proposed
change and authorizes the designated financial market utility to
implement the proposed change on an earlier date, subject to any
conditions imposed by the Commission.\8\
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    \8\ 12 U.S.C. 5465(e)(1)(I).
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    In its filing with the Commission, OCC requested that the
Commission notify OCC that it has no objection to the change no later
than February 14, 2014, which is one week before the February 21, 2014
termination date of the Existing Facility. OCC requested Commission
action by this date, which is fewer than 60 days after OCC filed this
advance notice, to ensure that there is no period of time during which
OCC operates without access to additional liquidity for working capital
needs and general corporate purposes, and to make certain that OCC
remains in compliance with the liquidity requirements of CFTC
regulation Section 39.11(e)(2) \9\ at all times.
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    \9\ 17 CFR 39.11(e)(2).
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    The Commission does not object to the changes described in the
advance notice. The Commission agrees that the Extended Facility will
afford OCC continued access to additional liquidity that should help
OCC meet its CFTC requirement for working capital. Moreover, the
Commission believes that access to the Extended Facility affords OCC
needed flexibility in meeting its daily needs for operating capital.
The Commission further believes that the Extended Facility represents
an important safeguard against potential disruptions to OCC's ability
to provide clearance and settlement services, and thereby enhances
OCC's safety and soundness.\10\ Improving OCC's resilience furthers the
objectives of the Clearing Supervision Act,\11\ and is consistent with
the regulations adopted by the Commission thereunder.\12\
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    \10\ See 12 U.S.C. 5464(b) (noting that the objectives of the
Clearing Supervision Act include a desire to ``promote the safety
and soundness'' of clearing agencies).
    \11\ Id.
    \12\ 17 CFR 240.17Ad-22(d)(4) (requiring, pursuant to the
Clearing Supervision Act, that clearing agencies (i) develop
procedures to minimize ``sources of operational risk,'' (ii)
implement systems that are ``reliable'' and ``resilient,'' and (iii)
have ``business continuity plans that allow for . . . fulfillment of
[the agency's] obligations,'' among other things).
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VI. Conclusion

    Pursuant to Section 806(e)(1)(I) of the Clearing Supervision
Act,\13\ the Commission does not object to the proposed change, and
hereby authorizes OCC to implement the Change (SR-OCC-2014-801) as of
the date of this Order.
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    \13\ 12 U.S.C. 5465(e)(1)(I).

    By the Commission.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-03574 Filed 2-18-14; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 86, Number 16 (Wednesday, January 27, 2021)]
[Rules and Regulations]
[Pages 7238-7239]
[FR Doc No: 2021-01104]

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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 117

[Docket No. USCG-2019-0911]

Drawbridge Operation Regulation; Mobile River, Hurricane, AL

AGENCY: Coast Guard, DHS.

ACTION: Notice of temporary deviation from regulations; request for
comments.

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SUMMARY: The Coast Guard has issued a temporary deviation from the
operating schedule that governs the CSX Transportation Railroad
drawbridge across the Mobile River, mile 13.3 near Hurricane, Mobile
County, Alabama. This deviation will test a change to the drawbridge
operation schedule to determine whether a permanent change to the
schedule is needed. The Coast Guard is seeking comments from the public
regarding these proposed changes.

DATES: This deviation is effective without actual notice from 7:01 a.m.
January 27, 2021 through 7 a.m. July 8, 2021. For the purposes of
enforcement, actual notice will be used from 7 a.m. January 8, 2021
through 7 a.m. January 27, 2021. Comments and related material must
reach the Coast Guard on or before July 8, 2021.

ADDRESSES: You may submit comments identified by docket number USCG-
2019-0911 using Federal eRulemaking Portal at https://www.regulations.gov.
    See the ``Public Participation and Request for Comments'' portion
of the SUPPLEMENTARY INFORMATION section below for instructions on
submitting comments.

FOR FURTHER INFORMATION CONTACT: If you have questions on this test
deviation, call or email Mr. Doug Blakemore. Eighth Coast Guard
District Bridge Administration Branch Chief; telephone<PHONE_NUMBER>,
email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

I. Background, Purpose and Legal Basis

    The CSX Transportation Railroad drawbridge has a vertical clearance
of 5.5' in the closed to navigation position and operates in accordance
with 33 CFR 117.5. The CSX Railroad Company, the owner of the bridge
requested to change operation of the bridge from a tended drawbridge to
a remotely operated drawbridge.
    CSX has completed installation of a remote operation system at the
bridge and a remote control center, located in Mobile, AL. At the
bridge, CSX has installed infrared cameras, closed circuit cameras and
TVs, communication systems and information technology systems on the
bridge that allow an operator from Mobile to monitor and control the
bridge. They have also developed an operations manual that remote
operators use to control each bridge.
    The purpose of this test is to evaluate the impact to navigation
safety and vessels reasonable ability to use the waterway while the
drawbridge is operated from the CSX remote control center in Mobile,
AL. The bridge's operation schedule and methods to contact the bridge
to open will remain the same.
    The waterway users include recreational vessels and commercial
tows; which combined requires approximately six openings a day.
    The Coast Guard will inform the users of the waterways through our
Local and Broadcast Notices to Mariners of the change in operating
schedule for the bridge so that vessel operators can arrange their
transits to minimize any impact caused by the temporary deviation.
    In accordance with 33 CFR 117.35(e), the drawbridge must return to
its regular operating schedule immediately at the end of the effective
period of this temporary deviation. This deviation from the operating
regulations is authorized under 33 CFR 117.35.

II. Public Participation and Request for Comments

    We view public participation as essential to effective rulemaking,
and will consider all comments and material received during the comment
period. Your comment can help shape the outcome of this rulemaking. If
you submit a comment, please include the docket number for this
rulemaking, indicate the specific section of this document to which
each comment applies, and provide a reason for each suggestion or
recommendation.
    We encourage you to submit comments through the Federal eRulemaking
Portal at https://www.regulations.gov. If your material cannot be
submitted using https://www.regulations.gov, contact the person in the
FOR FURTHER INFORMATION CONTACT section of this document for alternate
instructions.
    We accept anonymous comments. All comments received will be posted
without change to https://www.regulations.gov and will include any
personal information you have provided. For more about privacy and
submissions in response to this document, see DHS's eRulemaking System
of Records notice (85 FR 14226, March 11, 2020).
    Documents mentioned in this test deviation as being available in
this docket and all public comments, will be in our online docket at
https://www.regulations.gov and can be viewed by following that
website's instructions. Additionally, if you go to the online docket
and sign up for email alerts, you will be notified when comments are
posted or a final rule is published.

    Dated: January 11, 2021.
Douglas Allen Blakemore, Sr.,
Chief, Bridge Administration Branch, Eighth Coast Guard District.
[FR Doc. 2021-01104 Filed 1-26-21; 8:45 am]
BILLING CODE 9110-04-P


[Federal Register Volume 82, Number 26 (Thursday, February 9, 2017)]
[Notices]
[Pages 10102-10105]
[FR Doc No: 2017-02638]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79956; File No. SR-BatsBZX-2017-05]

Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Adopt a
New Type of Logical Port Known as a Purge Port

February 3, 2017.
    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 January 23, 2017, Bats BZX Exchange, Inc. (the ``Exchange'' or
``BZX'') 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
has designated this proposal as a ``non-controversial'' proposed rule
change pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-
4(f)(6)(iii) thereunder,\4\ which renders it effective upon filing with
the Commission. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6)(iii).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange filed a proposal to amend Exchange Rule 22.11, Mass
Cancellation of Trading Interest, to reflect the proposed Purge Port
functionality.
    The text of the proposed changes to Exchange Rule 22.11 is attached
as Exhibit 5A. The proposed changes to the fee schedule are attached as
Exhibit 5B. The text of the proposed rule change is available at the
Exchange's Web site at www.bats.com, at the principal office of the
Exchange, and at the Commission's Public Reference Room.

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

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

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

1. Purpose
    The Exchange also offers a bulk-quoting interface which allows
Users of BZX Options to submit and update multiple bids and offers in
one message through logical ports enabled for bulk-quoting.
Purge Ports
    The Exchange now proposes to modify the BZX Options fee schedule to
identify fees for Purge Ports, a new type of logical port which would
enable Options Members \5\ to cancel/purge all open orders, or a subset
thereof, across multiple logical ports through a single cancel/purge
message. The Exchange also proposes to amend Exchange Rule 22.11, Mass
Cancellation of Trading Interest, to reflect the proposed Purge Port
functionality. The proposed ports are designed to assist Options
Members, including Market Makers, in the management of, and risk
control over, their quotes, particularly if the Options Member is
dealing with a large number of options. For example, if an Options
Member detects market indications that may influence the direction or
bias of

his or her quotes the Options Member may use the proposed Purge Port(s)
to reduce uncertainty and to manage risk by purging all quotes in a
number of options seamlessly to avoid unintended executions, while
continuing to evaluate the direction of the market. While Purge Ports
will be available to all Options Members, the Exchange anticipates they
will be used primarily by Market Makers.
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    \5\ ``Options Member'' is defined as ``a firm, or organization
that is registered with the Exchange pursuant to Chapter XVII of
these Rules for purposes of participating in options trading on EDGX
Options as an `Options Order Entry Firm' or `Options Market Maker.'
'' See Exchange Rule 16.1(a)(38).
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    Options Members may currently cancel orders through their existing
logical ports and may send a mass cancel message pertaining to multiple
contracts cancelling all orders sent though a particular logical port.
The Exchange now proposes to expand the ability of Options Members to
cancel orders through the proposed Purge Ports, which would enable them
to cancel/purge all open orders, or a subset thereof, across multiple
logical ports through a single cancel/purge message. The mass cancel
request may be limited to a subset of orders by identifying the range
of orders to be purged.\6\ An Options Member may also request via a
Purge Port that the Exchange block all or a subset of its new inbound
bids, offers, and orders in all series of options or in all options for
a specified underlying security. The block will remain in effect until
the Options Member requests the Exchange remove the block. The Exchange
proposes to modify the Options Logical Port Fee section of the BZX
Options fee schedule to adopt a fee for Purge Ports of $750 per port/
per month.
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    \6\ The Options Member may identify a subset of orders based on
their own risk profile by selecting orders across series, strike
price, and/or expiration date.
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    The Exchange also proposes to amend Exchange Rule 22.11, Mass
Cancellation of Trading Interest, to reflect the proposed Purge Port
functionality. Exchange Rule 22.11 currently states that an Options
Member may simultaneously cancel all its bids, offers, and orders in
all series of options or in all options for a specified underlying
security by requesting the Exchange staff to effect such cancellation.
First, the Exchange proposes to amend Rule 22.11 to state that an
Options Member may also cancel all or a subset of its bids, offers, and
orders in all series of options or in all options for a specified
underlying security by requesting the Exchange to effect such
cancellation.\7\ The Exchange further proposes to amend Rule 22.11 to
state that an Options Member may also request that the Exchange block
all or a subset of its new inbound bids, offers, and orders in all
series of options or in all options for a specified underlying
security. Rule 22.11 will further state that the block will remain in
effect until the Options Member requests the Exchange remove the block.
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    \7\ The Exchange also proposes to the remove reference to the
Exchange ``staff'' as such cancellation request may also be through
the logical ports or the proposed Purge Ports.
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Ministerial Change
    The Exchange proposes to remove language from the Option Logical
Port Fees section of its fee schedule regarding the summing of logical
ports for billing purposes. The fee schedule currently states that the,
``[e]xcept for bulk quoting ports, which will be separately evaluated,
BZX Options will sum logical ports across all classifications in order
to determine applicable fees.'' This language was adopted in October
2015 when the Exchange began charging different rates based on the
number of logical ports a User utilized.\8\ Thereafter, in June 2016,
the Exchange proposed to no longer charge different rates based on the
number of logical ports and moved to a single rate for all logical
ports, but for ports with bulk quoting capabilities.\9\ At that time,
the above language should have also been removed from the fee schedule
and the Exchange now proposes to remove it in this filing as such
language is no longer necessary.
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    \8\ See Securities Exchange Act Release No. 76120 (October 9,
2015), 80 FR 62588 (October 16, 2015) (SR-BATS-2015-83).
    \9\ See Securities Exchange Act Release No. 77884 (May 23,
2016), 81 FR 33718 (May 27, 2016) (SR-BatsBZX-2016-17).
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section
6(b) of the Act \10\ in general, and furthers the objectives of Section
6(b)(5) of the Act \11\ in particular, in that it is designed to
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in facilitating transactions in
securities, to remove impediments to and perfect the mechanism of a
free and open market and a national market system and, in general, to
protect investors and the public interest. The Exchange believes that
the proposed rule change is consistent with Section 6(b)(4) of the
Act,\12\ in that it provides for the equitable allocation of reasonable
dues, fees and other charges among Members and other persons using any
facility or system which the Exchange operates or controls. The
Exchange believes that the proposed rule change would promote just and
equitable principles of trade and remove impediments to and perfect the
mechanism of a free and open market because offering Options Members,
including Market Makers, designated Purge Ports would enhance their
ability to manage quotes, quote traffic, and their quoting
obligations,\13\ which would, in turn, improve their risk controls to
the benefit of all market participants. The Exchange believes that the
Purge Ports would foster cooperation and coordination with persons
engaged in facilitating transactions in securities because designating
Purge Ports for purges only may encourage better use of such dedicated
ports. This may, concurrent with the logical ports that carry quote and
other information necessary for market making activities, enable more
efficient, as well as fair and reasonable, use of Market Makers'
resources. Because Purge Ports, as the name suggests, are only
available for purging and not for activities such as order or quote
entry, the Purge Ports are not designed to permit unfair discrimination
but rather are designed to enable Market Makers to manage their quoting
risk and meet their heightened quoting obligations that other market
participants are not subject to, which, in turn, benefits all market
participants. The Exchange also notes that similar connectivity and
functionality is offered by other exchanges.\14\
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    \10\ 15 U.S.C. 78f(b).
    \11\ 15 U.S.C. 78f(b)(5).
    \12\ 15 U.S.C. 78f(b)(4).
    \13\ See Exchange Rules 22.5 and 22.6.
    \14\ See Chapter VII of the NASDAQ PHLX LLC (``Phlx'') pricing
schedule (setting forth fees for SQF Purge Ports, which only allow
for the mass purging of quotations). See also Securities Exchange
Act Release No. 77613 (April 13, 2016), 81 FR 23023 (April 19, 2016)
(SR-Phlx-2016-45). See Miami International Securities Exchange LLC
(``MIAX'') Rule 519C, Mass Cancellation of Trading Interest
(allowing members to remove all or a subset of its quotations in and
to block new inbound quotations). See also Securities Exchange Act
Release No. 78974 (September 29, 2016), 81 FR 69090 (October 5,
2016) (SR-MIAX-2016-34).
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    The Exchange notes that the proposed rule change will not relieve
Market Makers of their continuous quoting obligations under Exchange
Rule 22.6 and under Regulation NMS Rule 602.\15\ Specifically, any
interest that is executable against an Options Member's or Market
Maker's quotes and orders that is received by the Exchange prior to the
time the removal of quotes request will automatically execute at that
price, up to the quote's size. Market Makers that purge their quotes
will not be relieved of the obligation to provide continuous two-sided
quotes on a daily basis, nor will it prohibit the Exchange from taking
disciplinary action against a Market Maker for failing to meet their

continuous quoting obligation each trading day.
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    \15\ 17 CFR 242.602.
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    The Exchange believes that its proposed fees should facilitate the
ability of the Exchange to recoup some costs associated with Purge
Ports as well as provide, maintain, and improve Purge Ports.\16\ The
Exchange operates in a highly competitive market in which exchanges
offer connectivity services as a means to facilitate the trading
activities of Members and other participants. Accordingly, fees charged
for connectivity are constrained by the active competition for the
order flow of such participants as well as demand for market data from
the Exchange. If a particular exchange charges excessive fees for
connectivity, affected Members will opt to terminate their connectivity
arrangements with that exchange, and adopt a possible range of
alternative strategies, including routing to the applicable exchange
through another participant or market center or taking that exchange's
data indirectly. Accordingly, the exchange charging excessive fees
would stand to lose not only connectivity revenues but also revenues
associated with the execution of orders routed to it by affected
Members, and, to the extent applicable, market data revenues. The
Exchange believes that this competitive dynamic imposes powerful
restraints on the ability of any exchange to charge unreasonable fees
for connectivity.
---------------------------------------------------------------------------

    \16\ Purge Ports will be fee liable on a monthly basis (and not
only when such ports are active), which will help the Exchange to
recoup the cost of these ports.
---------------------------------------------------------------------------

    The Exchange also believes the proposed fee for the Purge Ports is
equitable and reasonable as compared to the Exchange's other fees for
logical port connectivity. The Exchange currently charges $650 per
port/per month for logical ports, Multicast PITCH Spin Server, and GRP
Ports. With regard to ports with bulk quoting capabilities, the
Exchange charges $1,500 per month for the first five ports and $2,000
per month for each port in excess of five. The Exchange believes it is
equitable and reasonable to charge $750 per month for the proposed
Purge Ports as such ports are more similar to ports with bulk quoting
capabilities than to standard logical ports because both Purge Ports
and bulk quoting ports allow for the sending of a single message to
impact multiple orders. Additionally, Purge Port requests may cancel
orders submitted over numerous ports and contain added functionality to
purge only a subset of these orders. The proposed rate is competitive
with that charged by competitor exchanges for similar functionality.
For example, Phlx charges a rate of $500 per month for the first five
SQF Purge Ports, which only allow for the mass purging of quotations
and not the purging of a subset of orders and the blocking of new
orders as proposed herein.\17\
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    \17\ See Chapter VII of the Phlx pricing schedule (setting forth
fees for SQF Purge Ports). See also Securities Exchange Act Release
No. 77613 (April 13, 2016), 81 FR 23023 (April 19, 2016) (SR-Phlx-
2016-45).
---------------------------------------------------------------------------

    The Exchange also believes that the proposed amendments to its fee
schedule are non-discriminatory because they will apply uniformly to
all Members. The proposed Purge Ports are completely voluntary and no
Member is required or under any regulatory obligation to utilize them.
All Members that voluntarily select this service options will be
charged the same amount for the same services. All Members have the
option to select any connectivity option, and there is no
differentiation among Members with regard to the fees charged for the
services offered by the Exchange.
    Lastly, the Exchange believes the ministerial change to its fee
schedule is also equitable, reasonable and not unfairly discriminatory
in that it removes unnecessary language to avoid potential investor
confusion.

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

    The Exchange believes its proposed amendments to its fee schedule
would not impose any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act. On the contrary,
the Exchange believes the proposed rule change will enhance competition
because it will enable it to offer similar connectivity and
functionality as its competitor exchanges.\18\ In addition, the
proposed Purge Ports are completely voluntary and no Member is required
or under any regulatory obligation to utilize them. The Exchange does
not believe that the proposed change represents a significant departure
from previous pricing offered by the Exchange or pricing offered by the
Exchange's competitors. Additionally, Members may opt to disfavor the
Exchange's pricing if they believe that alternatives offer them better
value. Accordingly, the Exchange does not believe that the proposed
change will impair the ability of Members or competing venues to
maintain their competitive standing in the financial markets.
---------------------------------------------------------------------------

    \18\ See supra note 14.
---------------------------------------------------------------------------

    The Exchange believes that fees for the proposed Purge Ports and
connectivity, in general, are constrained by the robust competition for
order flow among exchanges and non-exchange markets. Further, excessive
fees for connectivity, including Purge Port fees, would serve to impair
an exchange's ability to compete for order flow rather than burdening
competition. The Exchange also does not believe the proposed rule
change would impact intramarket competition as it would apply to all
Members and non-Members equally.
    Lastly, the ministerial change to its fee schedule will have no
impact on competition as it does not change any fee or rate. It simply
removes unnecessary language to avoid potential investor confusion.

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

    No comments were solicited or received 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: (A)
Significantly affect the protection of investors or the public
interest; (B) impose any significant burden on competition; and (C) by
its terms, 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 \19\ and
paragraph (f)(6) of Rule 19b-4 thereunder,\20\ the Exchange has
designated this rule filing as non-controversial. The Exchange has
given the Commission written notice of its intent to file the proposed
rule change, along with a brief description and text of the proposed
rule change at least five business days prior to the date of filing of
the proposed rule change, or such shorter time as designated by the
Commission.
---------------------------------------------------------------------------

    \19\ 15 U.S.C. 78s(b)(3)(A).
    \20\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

    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: (1)
Necessary or appropriate in the public interest; (2) for the protection
of investors; or (3) otherwise in furtherance of the purposes of the
Act. If the Commission takes such action, the Commission shall
institute proceedings to determine whether the proposed rule should be
approved or disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposal 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 No. SR-BatsBZX-2017-05 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 No. SR-BatsBZX-2017-05. 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 will also 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 No. SR-BatsBZX-2017-05 and should be
submitted on or before March 2, 2017.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\21\
---------------------------------------------------------------------------

    \21\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-02638 Filed 2-8-17; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 84, Number 224 (Wednesday, November 20, 2019)]
[Notices]
[Pages 64063-64064]
[FR Doc No: 2019-25171]

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ENVIRONMENTAL PROTECTION AGENCY

[EPA-HQ-OPPT-2019-0637; FRL-10002-09]

New Chemicals Program Implementation Under the Amended Toxic
Substances Control Act (TSCA); Notice of Public Meeting

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

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SUMMARY: On December 10, 2019, EPA's Office of Chemical Safety and
Pollution Prevention (OCSPP) will hold a public meeting to engage with
interested stakeholders on the implementation of EPA's TSCA New
Chemicals program, including: (1) An overview of EPA's updated
``Working Approach'' document that builds upon EPA's November 2017
``New Chemicals Decision-Making Framework: Working Approach to Making
Determinations under section 5 of TSCA''; (2) a demonstration of how
EPA uses key concepts in the Working Approach to reach certain
conclusions and/or make determinations under TSCA section 5(a)(3) using
specific case examples; (3) an update on confidential business
information (CBI) process improvements and clarifications; and (4) a
discussion of EPA's ongoing efforts and progress to increase
transparency. Interested stakeholders will have the opportunity at the
meeting to provide their views on these topics, in addition to
providing written feedback in the docket. Later in December 2019, EPA
expects to announce the availability of the updated ``Working
Approach'' document and provide opportunity for written public comment
on the document. Feedback from the public meeting and comments received
will help inform the Agency's ongoing efforts to improve policy and
processes relating to the review of new chemicals under TSCA.

DATES: Meeting: The New Chemicals Program meeting will be held on
December 10, 2019, from 10:00 a.m. to 3:00 p.m. In addition to EPA
presentations on the topics described above, EPA is setting aside one
hour (from 1:40 p.m. to 2:40 p.m.) for members of the public to share
their views. See registration instructions below. Online requests to
speak at the meeting must be received on or before December 6, 2019.
On-site registration for both attendance and speaking will be
permitted, but seating and speaking priority will be given to those who
pre-register by the deadline.
    Requests for Accommodation: To request accommodation of a
disability, please contact the meeting logistics person listed under
FOR FURTHER INFORMATION CONTACT, preferably at least 10 days prior to
the meeting, to give EPA as much time as possible to process your
request.
    Comments: EPA will accept written feedback on these topics in the
docket until January 24, 2020. When submitting comments to the docket,
please be as specific as possible, and please include any supporting
data or other information.

ADDRESSES: The meeting will be held at EPA's William Jefferson Clinton
East Building, room 1153 (``the Map Room''), 1201 Constitution Avenue
NW, Washington, DC 20460. The meeting will also be available by remote
access for registered participants. For further information, see Unit
III. under SUPPLEMENTARY INFORMATION.
    Registration: To participate in the New Chemicals Program
Implementation meeting on December 10, 2019 (identified by docket
identification (ID) number EPA-HQ-OPPT-2019-0637), you may register
online (preferred) or in person at the meeting. To register online, go
to https://epa-ncrp.eventbrite.com.
    Comments: Written feedback, identified by the docket ID number EPA-
HQ-OPPT-2019-0637, can be submitted by one of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov.
Follow the online instructions for submitting written feedback. Do not
submit electronically any information you consider to be Confidential
Business Information (CBI) or other information whose disclosure is
restricted by statute.
     Mail: Document Control Office (7407M), Office of Pollution
Prevention and Toxics (OPPT), Environmental Protection Agency, 1200
Pennsylvania Ave. NW, Washington, DC 20460-0001.
     Hand Delivery: To make special arrangements for hand
delivery or delivery of boxed information, please follow the
instructions at http://www.epa.gov/dockets/contacts.html.
    Additional instructions on commenting or visiting the docket, along
with more information about dockets in general is available at http://www.epa.gov/dockets.

FOR FURTHER INFORMATION CONTACT: For technical information about the
New Chemicals Program Implementation meeting contact: Ryan Schmit,
Office of Pollution Prevention and Toxics (7101M), Environmental
Protection Agency, 1200 Pennsylvania Ave. NW, Washington, DC 20460-
0001; telephone number:<PHONE_NUMBER>; email address:
<EMAIL_ADDRESS>    For meeting logistics or registration contact: Emily Connor, Abt
Associates; telephone number:<PHONE_NUMBER>; email address:
<EMAIL_ADDRESS>    For general information contact: The TSCA-Hotline, ABVI-Goodwill,
422 South Clinton Ave., Rochester, NY 14620; telephone number: (202)
554-1404; email address<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

I. General Information

A. Does this action apply to me?

    This action is directed to the public in general and may be of
interest to a wide range of stakeholders including chemical
manufacturers, processors and users, consumer product companies, non-
profit organizations in the environmental, public health and animal
welfare sectors, state and local government agencies, and members of
the public interested in the environmental and human health assessment
and regulation of new chemical substances. Since others also may be
interested, the Agency has not attempted to describe all the specific
entities that may be affected by this action.

B. How can I get copies of this document and other related information?

    The docket for the New Chemicals Program Implementation meeting
(EPA-HQ-OPPT-2019-0637) is available at http://www.regulations.gov or
at the Office of Pollution Prevention and Toxics Docket (OPPT Docket),
Environmental Protection Agency Docket Center (EPA/DC), West William
Jefferson Clinton Bldg., Rm. 3334, 1301 Constitution Ave. NW,
Washington, DC. The Public Reading Room is open from 8:30 a.m. to 4:30
p.m., Monday through Friday, excluding legal holidays. The telephone
number for the Public Reading Room is<PHONE_NUMBER>, and the telephone
number for the OPPT Docket is<PHONE_NUMBER>. Please review the visitor
instructions and additional

information about the docket available at http://www.epa.gov/dockets.

II. Background

    The Frank R. Lautenberg Chemical Safety for the 21st Century Act,
amending the Toxic Substances Control Act of 1976, was signed into law
on June 22, 2016. The amendments have enhanced EPA's authority to
evaluate chemical substances.
    Since the 2016 amendments to TSCA, EPA has been working to make the
policy and process changes necessary to align the New Chemicals program
with the requirements of the new law, as well as to streamline and
improve the review process. In November 2017, EPA released the ``New
Chemicals Decision-Making Framework: Working Approach to Making
Determinations under section 5 of TSCA'' (the ``Working Approach'') for
public comment, and subsequently held a public meeting on implementing
the New Chemicals program under amended TSCA on December 14, 2017.
    After consideration of comments received on the 2017 version and
based on additional implementation experience, EPA is updating the
Working Approach. Later in December 2019, EPA will announce the
availability of the updated document after the public meeting and will
accept comments on the updated document. EPA expects the updated
document will provide further clarity and detail on EPA's approach and
practices, including: (1) EPA's general guiding principles and concepts
for making determinations on new chemical notices submitted to EPA
under section 5 of TSCA; (2) the decision-making logic and the key
questions that EPA must address; and (3) a discussion of how EPA might
apply the working approach to reach one of the five new chemical
determinations allowable under the statute.
    Additional information on the TSCA amendments can be found at
https://www.epa.gov/assessing-and-managing-chemicals-under-tsca/frank-r-lautenberg-chemical-safety-21st-century-act.

III. Meeting

A. Remote Access

    The meeting will be accessible remotely for registered
participants. Registered participants will receive information on how
to connect to the meeting prior to its start.

B. Public Participation at the Meeting

    Members of the public may register to attend the meeting as
observers and may also register to speak at the meeting, using one of
the registration methods described under ADDRESSES. A registered
speaker is encouraged to focus on issues directly relevant to the
meeting's subject matter. Each speaker will be allowed approximately
three minutes to provide oral feedback, subject to the number of
confirmed registered speakers. A speaker must be registered in order to
speak during the meeting. To accommodate as many registered speakers as
possible, speakers may not use visual aids or written material. Persons
registered to speak (as well as others) may submit written materials to
the dockets as described under ADDRESSES. The meeting agenda and
supporting materials will be made available in the docket and on EPA's
website in advance of the meeting.

IV. How can I request to participate in these meeting?

A. Registration

    To attend the meeting in person or to receive remote access, you
must register online no later than December 6, 2019, using one of the
methods described under ADDRESSES. While on-site registration will be
available, seating will be on a first-come, first-served basis, with
priority given to early registrants, until room capacity is reached.
For registrants not able to attend in person, the meeting will also
provide remote access capabilities; registered participants will be
provided information on how to connect to the meeting prior to its
start.

B. Required Registration Information

    Members of the public may register to attend as observers or to
speak during the scheduled public speaking period at the meeting. To
register for the meeting online, you must provide your full name,
organization or affiliation, and contact information.

    Authority: 15 U.S.C. 2601 et seq.

    Dated: November 15, 2019.
Tala Henry,
Deputy Director, Office of Pollution Prevention and Toxics.
[FR Doc. 2019-25171 Filed 11-19-19; 8:45 am]
 BILLING CODE 6560-50-P