[Federal Register Volume 84, Number 101 (Friday, May 24, 2019)]
[Rules and Regulations]
[Pages 24029-24030]
[FR Doc No: 2019-10887]

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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 165

[Docket No. USCG-2019-0288]

Safety Zones; Annual Events in the Captain of the Port Buffalo
Zone

AGENCY: Coast Guard, DHS.

ACTION: Notice of enforcement of regulation.

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SUMMARY: The Coast Guard will enforce certain safety zones located in
federal regulations for Annual Events in the Captain of the Port
Buffalo. This action is necessary and intended to protect the safety of
life and property on navigable waters prior to, during, and immediately
after these events. During each enforcement period, no person or vessel
may enter the respective safety zone without the permission of the
Captain of the Port Buffalo.

DATES: The regulations in 33 CFR 165.939(b)(1), as listed in Table
165.939, will be enforced from 6:15 a.m. through 10:45 a.m. on July 21,
2019.
    The regulations in 33 CFR 165.939(b)(4), as listed in Table
165.939, will be enforced from 9:15 p.m. through 10:15 p.m. on July 4,
2019.
    The regulations in 33 CFR 165.939(b)(6), as listed in Table
165.939, will be enforced from 8:45 p.m. through 11:45 p.m. on July 27,
2019.
    The regulations in 33 CFR 165.939(b)(12), as listed in Table
165.939, will be enforced from 6:45 a.m. through 10:45 a.m. on July 13,
2019.
    The regulations in 33 CFR 165.939(d)(2), as listed in Table
165.939, will be enforced daily from 9 a.m. through 6 p.m. August 30,
2019 through September 2, 2019.

FOR FURTHER INFORMATION CONTACT: If you have questions about this
notice of enforcement, call or email LT Ryan Junod, Chief of Waterways
Management, U.S. Coast Guard Marine Safety Unit Cleveland; telephone
(216) 937-0124, email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: The Coast Guard will enforce the Safety
Zones; Annual Events in the Captain of the Port

Buffalo Zone listed in 33 CFR 165.939 for the following events:
    (1) Cleveland Triathlon, Cleveland, OH; The safety zone listed in
Table 165.939 as (b)(1) will be enforced from 6:15 a.m. through 10:45
a.m. on July 21, 2019.
    (2) Downtown Cleveland Alliance July 4th Fireworks, Cleveland, OH;
The safety zone listed in Table 165.939 as (b)(4) will be enforced from
9:15 p.m. through 10:15 p.m. on July 4, 2019.
    (3) Parade of Lights, Cleveland, OH; The safety zone listed in
Table 165.939 as (b)(6) will be enforced from 8:45 p.m. through 11:45
p.m. on July 27, 2019.
    (4) Open Water Swim; The safety zone listed in Table 165.939 as
(b)(12) will be enforced from 6:45 a.m. through 10:45 a.m. on July 13,
2019.
    (5) Cleveland National Air Show, Cleveland, OH; The safety zone
listed in Table 165.939 as (d)(2) will be enforced daily from 9 a.m.
through 6 p.m. August 30, 2019 through September 2, 2019.
    Pursuant to 33 CFR 165.23, entry into, transiting, or anchoring
within the safety zone during an enforcement period is prohibited
unless authorized by the Captain of the Port Buffalo or his designated
representative. Those seeking permission to enter the safety zone may
request permission from the Captain of Port Buffalo via channel 16,
VHF-FM. Vessels and persons granted permission to enter the safety zone
shall obey the directions of the Captain of the Port Buffalo or his
designated representative. While within a safety zone, all vessels
shall operate at the minimum speed necessary to maintain a safe course.
    This notice of enforcement is issued under authority of 33 CFR
165.939 and 5 U.S.C. 552(a). In addition to this notice of enforcement
in the Federal Register, the Coast Guard will provide the maritime
community with advance notification of this enforcement period via
Broadcast Notice to Mariners or Local Notice to Mariners. If the
Captain of the Port Buffalo determines that the safety zone need not be
enforced for the full duration stated in this notice he or she may use
a Broadcast Notice to Mariners to grant general permission to enter the
respective safety zone.

    Dated: May 20, 2019.
Joseph S. Dufresne,
Captain, U.S. Coast Guard, Captain of the Port Buffalo.
[FR Doc. 2019-10887 Filed 5-23-19; 8:45 am]
 BILLING CODE 9110-04-P


Imazapyr Reader =

s Guide Reader =

s Guide to Imazapyr E Docket # OPP 2005 0495 EPA has created this document to provide an organizational structure to the imazapyr e Docket. The docket index organizes and explains related documents. The first group contains the Federal Register and Docket Organizational Documents; the second group contains the Human Health Risk Assessment documents for Phase 3 Public Comments; the third group contains the Environmental Fate and Effects Risk Assessment documents for Phase 3 Public Comments. The Agency is providing the A Reader =

s Guide @

to allow the reader to more easily access and navigate the various items contained in the imazapyr e docket.

Federal Register and Docket Organizational Documents:

Docket Item 1: Federal Register Notice: Imazapyr Risk Assessment and Related Documents ( Phase 3 of 4 Phase Process); Notice of Availability This notice announces that the risk assessments are available for public review and comment.

Docket Item 2: Request for Additional Information and Suggestions for the Reregistration of Imazapyr Phase 3 Public Comment Period This document request data and mitigation proposals from the public for the reregistration of imazapyr.

Docket Item 3: Reader =

s Guide to the Imazapyr E Docket # OPP 2005 0495 The reader =

s guide is designed to give a brief description of all the imazapyr documents in the imazapyr e Docket.

Use Profile:

Docket Item 4: Imazapyr Use Closure Memo This document clarifies imazapyr uses for the Reregistration Eligibility Decision ( RED) risk assessment. Imazapyr Reader =

s Guide Human Health Risk Assessment Documents for Phase 3 Public Comments:

Docket Item 5: Imazapyr. The Health Effects Division= s ( HED= s) Response to Comments Submitted During Phase One of the Public Participation Process. December 8, 2005 B Christina Jarvis This document is the Agency =

s response to error only comments.

Docket Item 6: Imazapyr: HED Chapter of the Reregistration Eligibility Document ( RED). PC Code: 128821, CAS Reg 81334 34 1, Case # 3078, DP Barcode: D320583 December 8, 2005 B Christina Jarvis This document describes all the human health risk from the use of imazapyr.

Docket Item 7: Imazapyr: Summary of Product Chemistry Data for Reregistration Eligibility Decision ( RED) Document August 29, 2005 B P. Yvonne Barnes This document describes the product chemistry review, data requirements, and data gaps for imazapyr.

Docket Item 8: Imazapyr. Chronic Dietary Exposure Assessment for the Section 3 Registration Action on Grasses and Aquatic Sites. March 26, 2003 B William Donovan This document describes the chronic dietary ( food & drinking water) exposure results and characterization for imazapyr.

Docket Item 9: Imazapyr: Occupational and Residential Exposure Assessment for the Reregistration Eligibility Decision Document. August 31, 2005 B Charles Smith This document describes the occupational and residential exposure results and characterization for imazapyr. Imazapyr Reader =

s Guide Environmental Fate and Effects Documents for Phase 3 Public Comment:

Docket Item 10: Response to Error Only Comments on the EFED Ecological Risk Assessment Supporting the Reregistration Eligibility Decision for the Herbicide, Imazapyr December 9, 2005 B Stephen Carey, Pamela Hurley, and Lucy Shanaman This document is the Agency =

s response to error only comments.

Docket Item 11: Level 1 Screening Ecological Risk Assessment for the Reregistration of Imazapyr December 9, 2005 B Stephen Carey, Pamela Hurley, and Lucy Shanaman This document describes all the ecological risks from the use of imazapyr.

Docket Item 12: APPENDIX A Environmental Fate Summaries and Structures of Imazapyr Transformation Products Level 1 Screening Ecological Risk Assessment for the Reregistration of Imazapyr December 9, 2005 B Stephen Carey, Pamela Hurley, and Lucy Shanaman This document summarizes the environmental fate of imazapyr.

Docket Item 13: APPENDIX B Aquatic Exposure Modeling for Terrestrial Applications ( GENEEC2)  Level 1 Screening Ecological Risk Assessment for the Reregistration of Imazapyr December 9, 2005 B Stephen Carey, Pamela Hurley, and Lucy Shanaman This document summarizes the environmental concentrations of imazapyr for terrestrial applications of imazapyr.

Docket Item 14: APPENDIX C Calculation Methods and GENEEC2 Model Input/ Output Tables Showing Estimated Environmental Concentrations ( EECs) for Direct Application to Water Level 1 Screening Ecological Risk Assessment for the Reregistration of Imazapyr December 9, 2005 B Stephen Carey, Pamela Hurley, and Lucy Shanaman This document describes the environmental concentrations for direct application of imazapyr to bodies of water. Docket Item 15: APPENDIX D T REX Model ( T REX Version 1.1)   Model Overview and Results Level 1 Screening Ecological Risk Assessment for the Reregistration of Imazapyr December 9, 2005 B Stephen Carey, Pamela Hurley, and Lucy Shanaman This document describes the risk quotient ( RQ) results for birds and mammals.

Docket Item 16: APPENDIX E Ecological Effects Data  Level 1 Screening Ecological Risk Assessment for the Reregistration of Imazapyr December 9, 2005 B Stephen Carey, Pamela Hurley, and Lucy Shanaman This document describes the ecological effects data for imazapyr.

Docket Item 17: Appendix F TerrPlant 1.0 Modeling and Results  Level 1 Screening Ecological Risk Assessment for the Reregistration of Imazapyr December 9, 2005 B Stephen Carey, Pamela Hurley, and Lucy Shanaman This document describes the risk quotient ( RQ) results for plants.

Docket Item 18: APPENDIX G The Risk Quotient Method and Levels of Concern  Level 1 Screening Ecological Risk Assessment for the Reregistration of Imazapyr December 9, 2005 B Stephen Carey, Pamela Hurley, and Lucy Shanaman This document describes the levels of concern for aquatic and terrestrial organisms.

Docket Item 19: APPENDIX H Summary of Endangered/ Threatened Species  Level 1 Screening Ecological Risk Assessment for the Reregistration of Imazapyr December 9, 2005 B Stephen Carey, Pamela Hurley, and Lucy Shanaman This document lists the threatened and endangered species for imazapyr.

Docket Item 20: APPENDIX J Incident Reports  Level 1 Screening Ecological Risk Assessment for the Reregistration of Imazapyr December 9, 2005 B Stephen Carey, Pamela Hurley, and Lucy Shanaman This document describes the incidents involving imazapyr. Docket Item 21: APPENDIX K Environmental Fate and Monitoring Bibliography  Level 1 Screening Ecological Risk Assessment for the Reregistration of Imazapyr December 9, 2005 B Stephen Carey, Pamela Hurley, and Lucy Shanaman This document lists the fate data for imazapyr.

Docket Item 22: Appendix M AgDrift Model ( spray drift estimates)  Level 1 Screening Ecological Risk Assessment for the Reregistration of Imazapyr December 9, 2005 B Stephen Carey, Pamela Hurley, and Lucy Shanaman This document describes the spray drift estimates for imazapyr.

Docket Item 23: APPENDIX N IMAZAPYR Level 1 Screening Ecological Risk Assessment for the Reregistration of Imazapyr December 9, 2005 B Stephen Carey, Pamela Hurley, and Lucy Shanaman This document describes the ecological papers that were acceptable for the imazapyr risk assessment.

Docket Item 24: APPENDIX L ECOTOXICOLOGY BIBLIOGRAPHY Level 1 Screening Ecological Risk Assessment for the Reregistration of Imazapyr December 9, 2005 B Stephen Carey, Pamela Hurley, and Lucy Shanaman This document lists the ecological effects studies for imazapyr.

Docket Item 25: APPENDIX I Data Requirement Tables   Environmental Fate and Effects Level 1 Screening Ecological Risk Assessment for the Reregistration of Imazapyr December 9, 2005 B Stephen Carey, Pamela Hurley, and Lucy Shanaman This document describes the ecological data requirements for imazapyr.

Docket Item 26: Tier 1 Drinking Water Exposure Assessment for Imazapyr November15, 2004 B R. David Jones This document represents the Agency =

s current drinking water exposure assessment for imazapyr.


[Federal Register Volume 81, Number 133 (Tuesday, July 12, 2016)]
[Notices]
[Page 45219]
[FR Doc No: 2016-16386]

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DEPARTMENT OF TRANSPORTATION

Pipeline and Hazardous Materials Safety Administration

[Docket No. PHMSA-2014-0002; PDA-36(R)]

Hazardous Materials: Pittsburgh, Pennsylvania Permit Requirements
for Transportation of Hazardous Material

AGENCY: Pipeline and Hazardous Materials Safety Administration (PHMSA),
DOT.

ACTION: Notice Dismissing Application and Closing the Docket.

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SUMMARY: The application for a determination of preemption is
dismissed, and this docket is closed, because the City of Pittsburgh,
Pennsylvania's permit and permit fee requirements are not being applied
or enforced.

FOR FURTHER INFORMATION CONTACT: Vincent Lopez, Office of Chief Counsel
(PHC-10), Pipeline and Hazardous Materials Safety Administration, U.S.
Department of Transportation, 1200 New Jersey Avenue SE., Washington,
DC 20590; telephone No.<PHONE_NUMBER>; facsimile No.<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: The American Trucking Associations, Inc.
(ATA) applied for an administrative determination concerning whether
Federal hazardous material transportation law, 49 U.S.C. 5101 et seq.,
preempts requirements of the City of Pittsburgh, Pennsylvania (City)
for a permit to transport hazardous materials by motor vehicle and the
fee to obtain the permit. On April 7, 2014, PHMSA published a public
notice and invitation to comment on ATA's application. 79 FR 21840. On
June 2, 2014, the comment period closed without any parties submitting
comments. On April 27, 2015, PHMSA published a notice of delay in
processing ATA's application in order to conduct additional fact-
finding and legal analysis in response to the application. 80 FR 23328.
On July 6, 2015, PHMSA sent a letter to the City's Solicitor, and its
Fire Chief, to encourage the city to participate in the proceeding. On
July 20, 2015, the City responded to PHMSA's letter and informed the
agency that the ``City of Pittsburgh at this time is not accepting
applications for the `Transportation of Hazardous Materials' permit and
has not done so since 2013.'' The City further stated that ``[n]o fees
were collected for 2014 or 2015. For 2013, the City of Pittsburgh
collected a total of $8,316.00 which was deposited into the City of
Pittsburgh's General Fund.'' Thereafter, in a letter, dated March 11,
2016, the City's Solicitor confirmed to PHMSA that the City had stopped
enforcing its permit and fee requirements to transport hazardous
materials in 2013, and further stated that it had no intention of
taking it up again.
    In light of this information, ATA's application is hereby
dismissed, and the docket is closed. In the future, if the City of
Pittsburgh, Pennsylvania's permit and permit fee requirements are ever
applied and enforced, ATA may again submit an application for a
preemption determination.
    Applicable Federal Requirements: Federal hazardous material
transportation law, 49 U.S.C. 5101 et seq., and the Hazardous Materials
Regulations (HMR), 49 CFR parts 171-180.
    Mode Affected: Highway.

     Issued in Washington, DC, on July 6, 2016.
Joseph Solomey,
Senior Assistant Chief Counsel.
[FR Doc. 2016-16386 Filed 7-11-16; 8:45 am]
 BILLING CODE 4910-60-P


[Federal Register Volume 85, Number 55 (Friday, March 20, 2020)]
[Rules and Regulations]
[Pages 15926-15930]
[FR Doc No: 2020-05891]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2020-0195; Product Identifier 2019-CE-052-AD; Amendment
39-21031; AD 2020-04-14]
RIN 2120-AA64

Airworthiness Directives; Honda Aircraft Company LLC

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule; request for comments.

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SUMMARY: The FAA is adopting a new airworthiness directive (AD) for
certain Honda Aircraft Company LLC (Honda) Model HA-420 airplanes. This
AD requires inspecting the wheel speed transducer (WST) wiring harness,
replacing the wiring harness if necessary, installing wiring hardware,
and rerouting the WST wiring harness on both the left and right brake
assemblies. This AD also requires revising the Abnormal Procedures
section of the airplane flight manual (AFM) and quick reference
handbook (QRH). This AD was prompted by reports of damage to the wiring
harness due to excessive slack in the wiring harness assembly that
allows contact with the main landing gear tire and by the determination
that the AFMs and QRHs contain incorrect procedures for anti-skid
braking system failures. The FAA is issuing this AD to address the
unsafe condition on these products.

DATES: This AD is effective April 6, 2020.
    The Director of the Federal Register approved the incorporation by
reference of certain publications listed in this AD as of April 6,
2020.
    The FAA must receive comments on this AD by May 4, 2020.

ADDRESSES: You may send comments, using the procedures found in 14 CFR
11.43 and 11.45, by any of the following methods:
     Federal eRulemaking Portal: Go to https://www.regulations.gov. Follow the instructions for submitting comments.

     Fax:<PHONE_NUMBER>.
     Mail: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue SE, Washington, DC 20590.
     Hand Delivery: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue SE, Washington, DC 20590, between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal holidays.
    For service information identified in this final rule, contact
Honda Aircraft Company LLC, 6430 Ballinger Road, Greensboro, North
Carolina 27410; telephone<PHONE_NUMBER>; internet: https://www.hondajet.com. You may view this service information at the FAA,
Policy and Innovation Division, 901 Locust, Kansas City, Missouri
64106. For information on the availability of this material at the FAA,
call<PHONE_NUMBER>. It is also available on the internet at https://www.regulations.gov by searching for and locating Docket No. FAA-2020-
0195.

Examining the AD Docket

    You may examine the AD docket on the internet at https://www.regulations.gov by searching for and locating Docket No. FAA-2020-
0195; or in person at Docket Operations between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal holidays. The AD docket contains
this final rule, the regulatory evaluation, any comments received, and
other information. The street address for Docket Operations is listed
above. Comments will be available in the AD docket shortly after
receipt.

FOR FURTHER INFORMATION CONTACT: Samuel Kovitch, Aerospace Engineer,
Atlanta ACO Branch, FAA, 1701 Columbia Avenue, College Park, Georgia
30337; phone:<PHONE_NUMBER>; fax:<PHONE_NUMBER>; email:
<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Discussion

    The FAA received a report of a Honda Model HA-420 airplane losing
normal braking during ground operations. Inspections revealed damage to
a brake wiring harness for the WST, which was most likely caused by
contact with the main landing gear tire. A review of manufacturer type
design data and production line assembly instructions revealed that the
wiring harness is installed with excessive slack that allows contact
with the tire when pulled. Thus, the damage found may occur on all in
service Honda Model HA-420 airplanes.
    Further investigation revealed that damage to the wiring harness
results in loss of the WST signal, which is interpreted by the digital
antiskid control unit (DACU) as either a WST failure or locked wheel
condition. The DACU provides locked wheel protection, which commands a
full release of normal brakes at speeds greater than 25 knots until the
right and left wheel speeds are within 70 percent of each other. Thus,
when a WST signal is lost, the DACU commands a full normal brake
release until the airplane speed falls below 25 knots. In this
scenario, unavailability of the normal brakes is not annunciated to the
pilot, because WST signal loss does not trigger the NORMAL BRAKE FAIL
red crew alerting system (CAS) message. The pilot is notified via an
ANTI-SKID FAIL amber CAS message. Existing AFM procedures for ANTI-SKID
FAIL instruct the pilot to apply normal brakes gradually to stop the
airplane when the anti-skid system has failed. The current AFM
procedures are incorrect and do not caution the pilot that normal
braking may be unavailable when the ANTI-SKID FAIL amber CAS message
posts or instruct the pilot to use emergency braking.
    This condition, if not addressed, could result in unannunciated
loss of normal brakes, reduced directional control during landing
deceleration and ground operations, and loss of control of the airplane
when applying the brakes. The FAA is issuing this AD to address the
unsafe condition on these products.

Related Service Information Under 1 CFR Part 51

    The FAA reviewed Pages 3A-178 through 3A-180 from Section 3A--
Abnormal Procedures in Honda Aircraft Company Airplane Flight Manual,
HondaJet, Effectivity: 42000012 through 42000125, Model HA-420, Part
No.: HJ1-29000-003-001, Revision D, dated December 12, 2019; and Pages
3A-178 through 3A-180 from Section 3A--Abnormal Procedures in Honda
Aircraft Company Airplane Flight Manual, HondaJet ELITE, Effectivity:
42000011, 42000126 and after, HondaJet APMG, Effectivity: 42000012
through 42000125 with SB-420-55-001, Model HA-420, Part No.: HJ1-29001-
003-001, Revision B1, dated December 12, 2019. For the specific
airplane serial numbers specified on each document, these pages are
revised pages to the AFMs that provide procedures for the flight crew
when the braking anti-skid system fails.
    The FAA also reviewed Page A-126 and Page A-127 from HondaJet,
Model HA-420, HJ1-29000-007-001, Volume 1 of 2, Effectivity 42000012
through 42000125, Quick Reference Handbook, Normal Procedures, Revision
D, dated December 12, 2019; Page A-124 and Page A-125 from HondaJet,
Model HA-420, HJ1-29001-007-001, HondaJet ELITE, Effectivity: 42000011,
42000126 and after, HondaJet APMG, Effectivity: 42000012 through
42000125 with SB-420-55-001, Quick Reference Handbook, Revision B,
dated December 12, 2019. For the specific airplane serial numbers
specified on each document, these pages are revised pages to the QRHs
that provide procedures for the flight crew when the braking anti-skid
system fails.
    The FAA also reviewed Honda Aircraft Company Service Bulletin Alert
SB-420-32-008, Revision B, dated November 16, 2019 (Honda SB-420-32-
008, Revision B). This service document contains procedures for
inspecting the condition of the WST wiring harness, replacing the
wiring harness if necessary, installing wiring hardware, and rerouting
the WST wiring harness on both the left and right brake assemblies.
    This service information is reasonably available because the
interested parties have access to it through their normal course of
business or by the means identified in the ADDRESSES section.

FAA's Determination

    The FAA is issuing this AD because the FAA evaluated all the
relevant information and determined the unsafe condition described
previously is likely to exist or develop in other products of the same
type design.

AD Requirements

    This AD requires replacing the revised pages in the AFMs and QRHs
applicable to your airplane. This AD also requires accomplishing the
actions specified in Honda SB-420-32-008, Revision B described
previously.

Interim Action

    The FAA considers this AD, which addresses anti-skid braking system
failures, an interim action. Honda is developing software changes to
revise the WST logic from the ANTI-SKID FAIL CAS to the NORMAL BRAKES
FAIL CAS. Once this action is developed, approved, and available, the
FAA may consider additional rulemaking.

FAA's Justification and Determination of the Effective Date

    An unsafe condition exists that requires the immediate adoption of
this AD without providing an opportunity

for public comments prior to adoption. The FAA has found that the risk
to the flying public justifies waiving notice and comment prior to
adoption of this rule because the damage to WST wiring harness is
possible on all affected airplanes due to slack in the harness by type
design and may worsen rapidly after each landing cycle and result in
loss of normal braking if left uncorrected. Additionally, incorrect AFM
and QRH procedures instruct the pilot to use normal braking when it is
unavailable instead of using emergency braking. The FAA has determined
that certain corrective action is necessary before further flight to
address the wiring harness damage that results in loss of normal
braking and to provide pilot notification and guidance on what to
expect and how to react to the ANTI-SKID FAIL CAS message coupled with
the loss of normal brakes. Therefore, the FAA finds good cause that
notice and opportunity for prior public comment are impracticable. In
addition, for the reasons stated above, the FAA finds that good cause
exists for making this amendment effective in less than 30 days.

Comments Invited

    This AD is a final rule that involves requirements affecting flight
safety and was not preceded by notice and an opportunity for public
comment. However, the FAA invites you to send any written data, views,
or arguments about this final rule. Send your comments to an address
listed under the ADDRESSES section. Include the Docket Number FAA-2020-
0195 and Product Identifier 2019-CE-052-AD at the beginning of your
comments. The FAA specifically invites comments on the overall
regulatory, economic, environmental, and energy aspects of this final
rule. The FAA will consider all comments received by the closing date
and may amend this final rule because of those comments.
    The FAA will post all comments received, without change, to https://www.regulations.gov, including any personal information you provide.
The FAA will also post a report summarizing each substantive verbal
contact the FAA receives about this final rule.

Costs of Compliance

    The FAA estimates that this AD affects 116 airplanes of U.S.
registry.
    The FAA estimates the following costs to comply with this AD:

                                                 Estimated Costs
----------------------------------------------------------------------------------------------------------------
                                                                                Cost per      Cost on U.S.
              Action                      Labor cost             Parts cost           product        operators
----------------------------------------------------------------------------------------------------------------
Revise the Abnormal Procedures      1 work-hour x $85 per  Not applicable.......             $85          $9,860
 section of the AFM.                 hour = $85.
Revise the QRH....................  1 work-hour x $85 per  Not applicable.......              85           9,860
                                     hour = $85.
Inspect WST wiring harness,         7.5 work-hours x $85   Not applicable.......          637.50          73,950
 install hardware and reroute the    per hour = $637.50.
 WST wiring harness.
----------------------------------------------------------------------------------------------------------------

    The FAA estimates the following costs to do any necessary
replacements that would be required based on the results of the
inspection. The FAA has no way of determining the number of aircraft
that might need these replacements:

                                               On-Condition Costs
----------------------------------------------------------------------------------------------------------------
                                                                                Cost per
                    Action                                 Labor cost               Parts cost        product
----------------------------------------------------------------------------------------------------------------
Replace the WST wiring harness................  *See note below.................            $389            $389
----------------------------------------------------------------------------------------------------------------
* Note: Since all operators are required to install wiring hardware and reroute the WST wiring harness, there is
  no additional labor cost associated with replacing the WST wiring harness.

    According to the manufacturer, some of the costs of this AD may be
covered under warranty, thereby reducing the cost impact on affected
individuals. We do not control warranty coverage for affected
individuals. As a result, we have included all costs in our cost
estimate.

Authority for This Rulemaking

    Title 49 of the United States Code specifies the FAA's authority to
issue rules on aviation safety. Subtitle I, section 106, describes the
authority of the FAA Administrator. Subtitle VII: Aviation Programs
describes in more detail the scope of the Agency's authority.
    The FAA is issuing this rulemaking under the authority described in
Subtitle VII, Part A, Subpart III, Section 44701: General requirements.
Under that section, Congress charges the FAA with promoting safe flight
of civil aircraft in air commerce by prescribing regulations for
practices, methods, and procedures the Administrator finds necessary
for safety in air commerce. This regulation is within the scope of that
authority because it addresses an unsafe condition that is likely to
exist or develop on products identified in this rulemaking action.
    This AD is issued in accordance with authority delegated by the
Executive Director, Aircraft Certification Service, as authorized by
FAA Order 8000.51C. In accordance with that order, issuance of ADs is
normally a function of the Compliance and Airworthiness Division, but
during this transition period, the Executive Director has delegated the
authority to issue ADs applicable to small airplanes, gliders,
balloons, airships, domestic business jet transport airplanes, and
associated appliances to the Director of the Policy and Innovation
Division.

Regulatory Flexibility Act

    The requirements of the Regulatory Flexibility Act (RFA) do not
apply when an agency finds good cause pursuant to 5 U.S.C. 553 to adopt
a rule without prior notice and comment. Because FAA has determined
that it has good cause to adopt this rule without notice and comment,
RFA analysis is not required.

Regulatory Findings

    This AD will not have federalism implications under Executive Order
13132. This AD will not have a substantial direct effect on the States,
on the relationship between the national government and the States, or
on the distribution of power and responsibilities among the various
levels of government.
    For the reasons discussed above, I certify that this AD:
    (1) Is not a ``significant regulatory action'' under Executive
Order 12866, and
    (2) Will not affect intrastate aviation in Alaska.

List of Subjects in 14 CFR Part 39

    Air transportation, Aircraft, Aviation safety, Incorporation by
reference, Safety.

Adoption of the Amendment

    Accordingly, under the authority delegated to me by the
Administrator, the FAA amends 14 CFR part 39 as follows:

PART 39--AIRWORTHINESS DIRECTIVES

0
1. The authority citation for part 39 continues to read as follows:

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

Sec.  39.13  [Amended]

0
2. The FAA amends Sec.  39.13 by adding the following new airworthiness
directive (AD):

2020-04-14 Honda Aircraft Company LLC: Amendment 39-21031; Docket
No. FAA-2020-0195; Product Identifier 2019-CE-052-AD.

(a) Effective Date

    This AD is effective April 6, 2020.

(b) Affected ADs

    None.

(c) Applicability

    This AD applies to Honda Aircraft Company LLC Model HA-420
airplanes, serial numbers (S/Ns) 42000011 through 42000184,
certificated in any category.

(d) Subject

    Joint Aircraft System Component (JASC)/Air Transport Association
(ATA) of America Code 32, Landing Gear.

(e) Unsafe Condition

    This AD was prompted by reports of damage to the wheel speed
transducer wiring harness due to excessive slack in the wiring
harness assembly that allows contact with the main landing gear tire
and the determination that the airplane flight manuals (AFMs) and
quick reference handbooks (QRHs) contain incorrect procedures for
anti-skid braking system failures. The FAA is issuing this AD to
prevent un-annunciated loss of normal brakes and reduced directional
control during landing deceleration and ground operations, which
could lead to a runway excursion.

(f) Compliance

    Comply with this AD within the compliance time specified, unless
already done.

(g) Revise the Airplane Flight Manuals and Quick Reference Handbooks

    Before further flight after April 6, 2020 (the effective date of
this AD), revise your AFM and your QRH as specified below.
    (1) For airplanes with S/Ns 42000012 through 42000125 without
SB-420-55-001: Remove the Abnormal Procedure pages for ANTI-SKID
Fail and replace with Pages 3A-178 through 3A-180 from Section 3A--
Abnormal Procedures in Honda Aircraft Company Airplane Flight
Manual, Model HA-420, Part No.: HJ1-29000-003-001, Revision D, dated
December 12, 2019.
    (2) For airplanes with S/Ns 42000012 through 42000125 without
SB-420-55-001: Remove the Abnormal Procedure pages for ANTI-SKID
FAIL and replace with Page A-126 and Page A-127 from Model HA-420,
HJ1-29000-007-001, Volume 1 of 2, Quick Reference Handbook, Normal
Procedures, Revision D, dated December 12, 2019.
    (3) For airplanes with S/Ns 42000011, 42000012 through 42000125
with SB-420-55-001, and 42000126 through 42000184: Remove the
Abnormal Procedure pages for ANTI-SKID FAIL and replace with Pages
3A-178 through 3A-180 from Section 3A--Abnormal Procedures in Honda
Aircraft Company Airplane Flight Manual, Model HA-420, Part No.:
HJ1-29001-003-001, Revision B1, dated December 12, 2019.
    (4) For airplanes with S/Ns 42000011, 42000012 through 42000125
with SB-420-55-001, and 42000126 through 42000184: Remove the
Abnormal Procedure pages for ANTI-SKID FAIL and replace with Page A-
124 and Page A-125 from Model HA-420, HJ1-29001-007-001, Quick
Reference Handbook, Revision B, dated December 12, 2019.

(h) Corrective Actions for the Wheel Speed Transducer Wiring Harness

    Within 90 days after April 6, 2020 (the effective date of this
AD), do the actions specified in steps 1 through 7 of the
Accomplishment Instructions in Honda Aircraft Company Service
Bulletin Alert SB-420-32-008, Revision B, dated November 16, 2019.

(i) Alternative Methods of Compliance (AMOCs)

    (1) The Manager, Atlanta ACO Branch, FAA, has the authority to
approve AMOCs for this AD, if requested using the procedures found
in 14 CFR 39.19. In accordance with 14 CFR 39.19, send your request
to your principal inspector or local Flight Standards District
Office, as appropriate. If sending information directly to the
manager of the certification office, send it to the attention of the
person identified in paragraph (j) of this AD.
    (2) Before using any approved AMOC, notify your appropriate
principal inspector, or lacking a principal inspector, the manager
of the local flight standards district office/certificate holding
district office.
    (3) For service information that contains steps that are labeled
as Required for Compliance (RC), the provisions of paragraphs
(i)(3)(i) and (ii) of this AD apply.
    (i) The steps labeled as RC, including substeps under an RC step
and any figures identified in an RC step, must be done to comply
with this AD. An AMOC is required for any deviations to RC steps,
including substeps and identified figures.
    (ii) Steps not labeled as RC may be deviated from using accepted
methods in accordance with the operator's maintenance or inspection
program without obtaining approval of an AMOC, provided the RC
steps, including substeps and identified figures, can still be done
as specified, and the airplane can be put back in an airworthy
condition.

 (j) Related Information

    For more information about this AD, contact Samuel Kovitch,
Aerospace Engineer, Atlanta ACO Branch, FAA, 1701 Columbia Avenue,
College Park, Georgia 30337; phone:<PHONE_NUMBER>; fax: (404) 474-
5605; email<EMAIL_ADDRESS>
(k) Material Incorporated by Reference

    (1) The Director of the Federal Register approved the
incorporation by reference (IBR) of the service information listed
in this paragraph under 5 U.S.C. 552(a) and 1 CFR part 51.
    (2) You must use this service information as applicable to do
the actions required by this AD, unless the AD specifies otherwise.
    (i) Pages 3A-178 through 3A-180 from Section 3A--Abnormal
Procedures in Honda Aircraft Company Airplane Flight Manual,
HondaJet, Effectivity: 42000012 through 42000125, Model HA-420, Part
No.: HJ1-29000-003-001, Revision D, dated December 12, 2019.
    (ii) Page A-126 and Page A-127 from HondaJet, Model HA-420, HJ1-
29000-007-001, Volume 1 of 2, Effectivity 42000012 through 42000125,
Quick Reference Handbook, Normal Procedures, Revision D, dated
December 12, 2019.
    (iii) Pages 3A-178 through 3A-180 from Section 3A--Abnormal
Procedures in Honda Aircraft Company Airplane Flight Manual,
HondaJet ELITE, Effectivity: 42000011, 42000126 and after, HondaJet
APMG, Effectivity: 42000012 through 42000125 with SB-420-55-001,
Model HA-420, Part No.: HJ1-29001-003-001, Revision B1, dated
December 12, 2019.
    (iv) Page A-124 and Page A-125 from HondaJet, Model HA-420, HJ1-
29001-007-001, HondaJet ELITE, Effectivity: 42000011, 42000126 and
after, HondaJet APMG, Effectivity: 42000012 through 42000125 with
SB-420-55-001, Quick Reference Handbook, Revision B, dated December
12, 2019.
    (v) Honda Aircraft Company Service Bulletin Alert SB-420-32-008,
Revision B, dated November 16, 2019.
    (3) For service information identified in this AD, contact Honda
Aircraft Company LLC, 6430 Ballinger Road, Greensboro, North

Carolina 27410; telephone<PHONE_NUMBER>; internet: https://www.hondajet.com.
    (4) You may view this service information at the FAA, Policy and
Innovation Division, 901 Locust, Kansas City, Missouri 64106. For
information on the availability of this material at the FAA, call
(816) 329-4148.
    (5) You may view the service information that is incorporated by
reference at the National Archives and Records Administration
(NARA). For information on the availability of this material at
NARA, email<EMAIL_ADDRESS>or go to: https://www.archives.gov/federal-register/cfr/ibr-locations.html.

    Issued in Kansas City, Missouri, on March 16, 2020.
Gaetano A. Sciortino,
Deputy Director for Strategic Initiatives, Compliance & Airworthiness
Division, Aircraft Certification Service.
[FR Doc. 2020-05891 Filed 3-19-20; 8:45 am]
 BILLING CODE 4910-13-P


[Federal Register: November 2, 2010 (Volume 75, Number 211)]
[Notices]
[Page 67419-67421]
[DOCID:fr02no10-111]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-63185; File No. SR-CBOE-2010-097]

Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change To Establish a Pilot Program To List Series With Additional
Expiration Months for Each Class of Options Opened for Trading on the
Exchange

October 27, 2010.
    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 October 26, 2010, the Chicago Board Options Exchange,
Incorporated (``CBOE'' or the ``Exchange'') filed with the Securities
and Exchange Commission (the ``Commission'') the proposed rule change
as described in Items I and II below, which Items have been prepared by
the Exchange. The Exchange filed the proposal as a ``non-
controversial'' proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-4(f)(6) thereunder.\4\ The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------

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

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

    CBOE proposes to amend its rules to adopt a pilot program to list
additional expiration months for each class of options opened for
trading on the Exchange. The text of the rule proposal is available on
the Exchange's Web site (http://www.cboe.org/legal), 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
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend its rules to adopt a pilot program
to list additional expiration months for each class of options opened
for trading on the Exchange. Pursuant to Interpretation and Policy .03
to Rule 5.5, the Exchange currently opens four expiration months for
each class of options open for trading on the Exchange: the first two
being the two nearest months, regardless of the quarterly cycle on
which that class trades; the third and fourth being the next two months
of the quarterly cycle previously designated by the Exchange for that
specific class. For example, if the Exchange listed, in late April, a
new stock option on a January-April--July-October quarterly cycle, the
Exchange would list the two nearest term months (May and June) and the
next two expiration months of the cycle (July and October). When the
May series expires, the Exchange would add January series. When the
June series expires, the Exchange would add August series as the next
month, and would not add April.
    The Exchange believes that there is market demand for a greater
number of expiration months. The Exchange therefore proposes to adopt a
pilot program pursuant to which it will list up to an additional two
expiration months, for a total of six expiration months for each class
of options open for trading on the Exchange.\5\ The proposal will
become effective on a pilot basis for a period of twelve months to
commence on the next full month after approval is received to establish
the pilot program. Under the proposal, the additional months listed
pursuant to the pilot program will result in four consecutive
expiration months plus two months from the quarterly cycle. For
example, for option classes in the January cycle that have expiration
months of June, July, October, and January, the Exchange would
additionally list the August and September series. For option classes
in the February quarterly cycle that have expiration months of October,
November, February and May, the

Exchange would additionally list the December and January series. Under
the proposal, no additional LEAP series will be created.
---------------------------------------------------------------------------

    \5\ CBOE does not believe that Rule 5.5.03 limits the maximum
number of expiration months that may be listed. Rule 5.5(a) and
5.5(c) provide CBOE with the flexibility to add additional
expiration months, which the Exchange has previously done. By
establishing the pilot program proposed in this filing, CBOE is not
limited to its existing ability.
---------------------------------------------------------------------------

    The Exchange seeks to limit the proposed rule change to 20 actively
traded options classes. By limiting the pilot to a small number of
classes, the Exchange will be able to gauge interest in the pilot while
limiting any additional demands on system resources. CBOE estimates
that this pilot could add up to six or seven percent to current quote
traffic, although changes in market maker quoting behavior will likely
reduce that increase by up to half. The Exchange believes that a
limited pilot is a prudent step to determine actual market demand for
additional expiration months.
    If the Exchange were to propose an extension or an expansion of the
pilot program, or should the Exchange propose to make the pilot program
permanent, CBOE will submit, along with any filing proposing such
amendments to the pilot program, a pilot program report (``Report'')
that will provide an analysis of the pilot program covering the first
nine months of the pilot program and shall submit the Report to the
Commission at least sixty (60) days prior to the expiration date of the
pilot program. The Report will include, at a minimum: (1) Data and
written analysis on the open interest and trading volume in the classes
for which additional expiration months were opened; (2) an assessment
of the appropriateness of the option classes selected for the pilot
program; (3) an assessment of the impact of the pilot program on the
capacity on CBOE, OPRA and on market data vendors (to the extent data
from market data vendors is available); (4) any capacity problems or
other problems that arose during the operation of the pilot program and
how CBOE addressed such problems; (5) any complaints that CBOE received
during the operation of the pilot program and how CBOE addressed them;
and (6) any additional information that would assist the Commission in
assessing the operation of the pilot program.
    Finally, the Exchange represents that it has the necessary systems
capacity to support new options series that will result from the
introduction of additional expiration months listed pursuant to this
proposed rule change.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with
the Act \6\ and the rules and regulations thereunder and, in
particular, the requirements of Section 6(b) of the Act.\7\
Specifically, the Exchange believes the proposed rule change is
consistent with the Section 6(b)(5) \8\ requirements that the rules of
an exchange be designed to promote just and equitable principles of
trade, to prevent fraudulent and manipulative acts, to remove
impediments to and to perfect the mechanism for a free and open market
and a national market system, and, in general, to protect investors and
the public interest. In particular, the Exchange believes listing
additional near-term expiration months will offer investors more
variety in trading options series that were previously not available.
The Exchange believes this proposed rule change will also generate
additional volume in these option classes without significantly taxing
system resources.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78s(b)(1).
    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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

    CBOE does not believe that the proposed rule change will impose any
burden on competition 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

    Because the foregoing proposed rule change does not significantly
affect the protection of investors or the public interest, does not
impose any significant burden on competition, and, by its terms, does
not become operative for 30 days from the date on which it was filed,
or such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \9\ and Rule 19b-
4(f)(6) thereunder.\10\
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the Exchange to give the Commission written notice of the
Exchange's intent to file the proposed rule change, along with a
brief description and text of the proposed rule change, at least
five business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission. The
Exchange has satisfied this requirement.
---------------------------------------------------------------------------

    The Exchange has requested that the Commission waive the 30-day
operative delay. The Commission believes that waiver of the operative
delay is consistent with the protection of investors and the public
interest because the proposal is substantially similar to that of
another exchange that has been approved by the Commission.\11\
Therefore, the Commission designates the proposal operative upon
filing.\12\
---------------------------------------------------------------------------

    \11\ See Securities Exchange Act Release No. 63104 (October 14,
2010), 75 FR 64773 (October 20, 2010) (SR-ISE-2010-91) (order
approving Additional Expiration Months Pilot Program).
    \12\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------

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

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-CBOE-2010-097 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-CBOE-2010-097. 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 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
a.m. and 3 p.m. Copies of the filing also will be available for
inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-CBOE-2010-097 and should be
submitted on or before November 23, 2010.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
---------------------------------------------------------------------------

    \13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-27586 Filed 11-1-10; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 86, Number 176 (Wednesday, September 15, 2021)]
[Notices]
[Pages 51398-51402]
[FR Doc No: 2021-19862]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-92917; No. SR-NYSEArca-2021-79]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Modify the NYSE
Arca Options Fee Schedule

September 9, 2021.
    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 September 1, 2021, NYSE Arca, Inc. (``NYSE Arca'' 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 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 modify the NYSE Arca Options Fee Schedule
(``Fee Schedule'') regarding certain pricing incentives. The Exchange
proposes to implement the fee change effective September 1, 2021. The
proposed rule change is available on the Exchange's website at
www.nyse.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 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
    The purpose of this filing is to amend the Fee Schedule to modify
certain pricing incentives. Specifically, the Exchange proposes to
modify the ``Discount in Take Liquidity Fees for Professional Customer
and Non-Customer Liquidity Removing Interest,'' the ``Market Maker
Penny and SPY Posting Credit Tiers,'' and the ``Market Maker Incentive
For Non-Penny Issues,'' as described below. The Exchange proposes to
implement the fee change effective September 1, 2021.
Discount in Take Liquidity Fees for Professional Customers and Non-
Customer Liquidity Removing Interest (the ``Take Fee Discount'')
    If an OTP Holder or OTP Firm (collectively ``OTP Holders'')
executes a transaction that removes or ``takes'' liquidity on the
Exchange, the OTP Holder is charged a ``Take Liquidity'' fee (referred
to herein as ``Take Fees'') and such liquidity may be referred to as
``Liquidity Removing'' or liquidity

taking.\4\ To offset such costs and to encourage market participants to
direct order flow to the Exchange, the Exchange offers, among other
incentives, the Take Fee Discounts for executions in Penny Issues.
---------------------------------------------------------------------------

    \4\ See Fee Schedule, NYSE Arca OPTIONS: TRADE-RELATED CHARGES
FOR STANDARD OPTIONS, TRANSACTION FEE FOR ELECTRONIC EXECUTIONS--PER
CONTRACT (setting forth a per contract Take Fee of $0.50 for such
Penny executions in Professional Customer, Firm, Broker Dealer, and
Market Maker range as compared to a per contract take fee of $0.49
for such Penny executions in the Customer range).
---------------------------------------------------------------------------

    The Exchange proposes to modify one of the Take Fee Discounts.
Under the current Fee Schedule, OTP Holders that execute at least 0.80%
of Total Industry Customer equity and ETF option average daily volume
(``TCADV'') \5\ from Customer posted interest in all issues, plus
executed ADV of 0.30% ADV of U.S. Equity Market Share Posted and
Executed on NYSE Arca Equity Market, may qualify for a $0.04 per
contract Take Fee Discount on liquidity-taking executions by
Professional Customers or Non-Customers in Penny Issues.
---------------------------------------------------------------------------

    \5\ See Fee Schedule, Endnote 8 (providing that TCADV ``includes
OCC calculated Customer volume of all types, including Complex Order
Transactions and QCC transactions, in equity and ETF options'').
---------------------------------------------------------------------------

    The Exchange proposes that this $0.04 Take Fee Discount would apply
only if the executing buyer and seller in the qualifying transaction
are either the same OTP Holder or an Affiliated or Appointed OFP or
Appointed MM of the OTP Holder (collectively referred to as
``Affiliates'' herein), otherwise, the Take Fee Discount would be $0.03
(instead of $0.04). In other words, when an OTP Holder or its Affiliate
trades against itself (e.g., Firm 1 MM trades against Firm 1 Customer
or Firm 1 MM trades against Customer of an Affiliate of Firm 1), the
$0.04 Take Fee Discount would apply. If, however, the OTP Holder trades
against another OTP Holder (e.g., Firm 1 MM trades against Firm 2
Customer), the $0.03 Take Fee Discount would apply. The Exchange
proposes to add language to the Fee Schedule that adds this provision.
    The Exchange believes the proposed fee change is reasonable because
the Exchange already offers certain transaction fee discounts to OTP
Holders and their Affiliates that aggregate their order flow on these
types of transactions.\6\ The Exchange also notes that this proposed
change is being made for business and competitive reasons to align
Exchange fee incentives with those charged by other options
exchanges.\7\ The Exchange believes that it will still remain highly
competitive and that its Take Fees Discounts, as modified, would
continue to attract order flow to the Exchange.
---------------------------------------------------------------------------

    \6\ See, e.g., Fee Schedule, CUSTOMER PENNY POSTING CREDIT TIERS
and Endnote 15 (providing per contract credits to OTP Holders and
Affiliates that meet certain minimum volume thresholds) and MARKET
MAKER PENNY AND SPY POSTING CREDIT TIERS (same).
    \7\ See, e.g., MIAX Pearl Options Fee Schedule, available at
https://www.miaxoptions.com/sites/default/files/fee_schedule-files/MIAX_Pearl_Options_Fee_Schedule_08122021.pdf (providing a lower
``take rate'' for ``executed MIAX Pearl Market Maker Orders when the
executing buyer and seller are the same Member or Affiliates'' and,
a higher ``take rate'' for ``executed MIAX Pearl Market Maker Orders
when the executing buyer and seller are not the same Member or
Affiliates'') (emphasis added); Nasdaq Options 7 Pricing Schedule,
Section 2 Nasdaq Options Market--Fees and Rebates, available at
https://listingcenter.nasdaq.com/rulebook/nasdaq/rules/nasdaq-options-7 (providing that Nasdaq participants that add 1.30% of
Customer, Professional, Firm, Broker-Dealer or Non-NOM Market Maker
liquidity in Penny Symbols and/or Non-Penny Symbols of TCADV per day
in a month will pay ``a $0.48 per contract Penny Symbols Fee for
Removing Liquidity when the Participant is (i) both the buyer and
the seller or (ii) the Participant removes liquidity from another
Participant under Common Ownership'', otherwise such participants
pay $0.50 per contract on such interest).
---------------------------------------------------------------------------

Market Maker Incentive for Non-Penny Issues and Market Maker Penny and
SPY Posting Credit Tiers (the ``Market Maker Posting Tiers'')
    The Exchange also proposes to modify the criteria for Market Makers
to qualify for enhanced posting credits in Penny Issues and SPY (i.e.,
the ``Market Maker Posting Tiers''). Specifically, to encourage Market
Makers and Lead Market Makers (collectively, ``Market Makers'') to
direct orders and quotes to the Exchange, this proposed rule change
would modify one of the alternative qualification bases for achieving
the Super Tier by lowering the minimum volume threshold and limiting
which interest can qualify for that threshold. Currently, to qualify
for the Super Tier, OTP Holders must execute at least 1.60% of TCADV
from all interest in all issues, all account types, with at least 0.80%
TCADV from posted interest in all issues. The Exchange proposes to
modify this qualification bases such that to qualify, an OTP Holder
would have to execute least 1.60% of TCADV from all interest in all
issues, all account types (which would be unchanged), with at least
0.15% TCADV from Market Maker posted interest in all issues. The per
contract credit for OTP Holders that achieve the Super Tier remains
unchanged (i.e., $0.37, and $0.39 per contract credit, respectively,
for electronic executions of Market Maker Posted Interest in Penny
Issues excluding SPY and for such executions in SPY).
    The Exchange believes that the proposed change would continue to
attract order flow to the Exchange because the limitation on the
qualifying interest (from all posted interest to Market Maker posted
interest) would be offset by the significantly reduced volume
requirement (from 0.80% to 0.15%). In addition, notwithstanding the
proposed modification to the Super Tier, OTP Holders are still eligible
to qualify for the existing alternative (and unchanged) Super Tier
qualification basis for executions in Penny Issues and SPY.\8\ By
continuing to provide such alternative methods to qualify for Take Fee
Discounts, the Exchange believes the opportunities to qualify for
credits is increased, which benefits all participants through increased
volume to the Exchange.
---------------------------------------------------------------------------

    \8\ OTP Holder may (still) qualify for the Super Tier by
executing at least 0.55% of TCADV from Market Maker posted interest
in all issues.
---------------------------------------------------------------------------

Market Maker Incentive for Non-Penny Issues (the ``Market Maker Non-
Penny Incentive'')
    To mirror the proposed change to the Super Tier (of the Market
Maker Posting Tiers) the Exchange also proposes to modify one of the
alternative qualification bases to achieve the Market Maker Non-Penny
Incentive. Specifically, under the current Fee Schedule, OTP Holders
must execute at least 1.60% of TCADV from all orders in all issues, all
account types, with at least 0.80% TCADV from posted interest in all
issues. First, the Exchange proposes to replace reference to ``TCADV
from all orders'' with ``TCADV from all interest'' to make clear that
liquidity may include orders or quotes. Next, the Exchange proposes to
modify this qualification bases such that (identical to the proposed
change to the Super Tier), to qualify, an OTP Holder would have to
execute least 1.60% of TCADV from all interest in all issues, all
account types, with at least 0.15% TCADV from Market Maker posted
interest in all issues. The $0.55 per contract credit for OTP Holders
that achieve the minimum volume threshold remains unchanged.
    The Exchange believes that the proposed change would continue to
attract order flow to the Exchange because the limitation on the
qualifying interest (from all posted interest to Market Maker posted
interest) is offset by the significantly reduced volume requirement
(from 0.80% to 0.15%). In addition, notwithstanding this proposed
modification, OTP Holders are still eligible to qualify for the
existing alternative (and unchanged) Market

Maker Non-Penny Incentive qualification basis for executions in Non-
Penny Issues.\9\ By continuing to provide such alternative methods to
qualify for Take Fee Discounts, the Exchange believes the opportunities
to qualify for credits is increased, which benefits all participants
through increased volume to the Exchange.
---------------------------------------------------------------------------

    \9\ OTP Holder may (still) qualify for the Market Maker Posting
Incentive by executing at least 0.55% of TCADV from Market Maker
posted interest in all issues.
---------------------------------------------------------------------------

    The Exchange cannot predict with certainty whether any OTP Holders
will avail themselves of the proposed changes to the Take Fee Discount,
the Market Maker Posting Tiers, or Market Maker Non-Penny Incentive. At
present, whether or when an OTP Holder would qualify for the enhanced
credit varies month-to-month. Thus, the Exchange cannot predict with
any certainty the number of OTP Holders that may qualify for the
proposed new qualifications, but believes that OTP Holders (including
those acting as Market Makers) would be encouraged to increase volume
to take advantage of the available credits and discounts.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\10\ in general, and furthers the
objectives of Sections 6(b)(4) and (5) of the Act,\11\ in particular,
because it provides for the equitable allocation of reasonable dues,
fees, and other charges among its members, issuers and other persons
using its facilities and does not unfairly discriminate between
customers, issuers, brokers, or dealers.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78f(b).
    \11\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------

The Proposed Rule Change Is Reasonable
    The Exchange operates in a highly competitive market. The
Commission has repeatedly expressed its preference for competition over
regulatory intervention in determining prices, products, and services
in the securities markets. In Regulation NMS, the Commission
highlighted the importance of market forces in determining prices and
SRO revenues and, also, recognized that current regulation of the
market system ``has been remarkably successful in promoting market
competition in its broader forms that are most important to investors
and listed companies.'' \12\
---------------------------------------------------------------------------

    \12\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496, 37499 (June 29, 2005) (S7-10-04) (``Reg NMS
Adopting Release'').
---------------------------------------------------------------------------

    There are currently 16 registered options exchanges competing for
order flow. Based on publicly-available information, and excluding
index-based options, no single exchange has more than 16% of the market
share of executed volume of multiply-listed equity and ETF options
trades.\13\ Therefore, currently no exchange possesses significant
pricing power in the execution of multiply-listed equity & ETF options
order flow. More specifically, in July of 2021, the Exchange had less
than 13% market share of executed volume of multiply-listed equity &
ETF options trades.\14\
---------------------------------------------------------------------------

    \13\ The OCC publishes options and futures volume in a variety
of formats, including daily and monthly volume by exchange,
available here: https://www.theocc.com/Market-Data/Market-Data-Reports/Volume-and-Open-Interest/Monthly-Weekly-Volume-Statistics.
    \14\ Based on OCC data for monthly volume of equity-based
options and monthly volume of ETF-based options, see id., the
Exchange's market share in equity-based options increased from
10.71% for the month of July 2020 to 12.15% for the month of July
2021.
---------------------------------------------------------------------------

    The Exchange believes that the ever-shifting market share among the
exchanges from month to month demonstrates that market participants can
shift order flow or discontinue or reduce use of certain categories of
products, in response to fee changes. Accordingly, competitive forces
constrain options exchange transaction fees. In response to this
competitive environment, the Exchange has established incentives, such
as the Take Fee Discount, Market Maker Non-Penny Incentive, and Market
Maker Posting Tiers.
    Finally, the Exchange believes the proposed non-substantive change
to the Fee Schedule (i.e., replacing reference to ``orders'' with
``interest'' in the Market Maker Non-Penny Incentive) is reasonable,
equitable, and not unfairly discriminatory because the change would add
clarity, transparency and internal consistency to the Fee Schedule
making it easier to navigate and comprehend, which would benefit all
market participants.
The Take Fee Discount
    The Exchange believes that the proposed modification to the Take
Fee Discount to encourage OTP Holders to send both sides of a
transaction to the Exchange is reasonably designed to continue to
incent OTP Holders to increase the amount of interest sent to the
Exchange, especially liquidity-taking interest. The Exchange believes
the proposed fee change is reasonable because the Exchange already
offers certain transaction fee discounts to OTP Holders and their
Affiliates that aggregate their order flow on these types of
transactions.\15\ The Exchange also notes that this proposed change is
being made for business and competitive reasons to align Exchange fee
incentives with those charged by other options exchanges.\16\ The
Exchange believes that, notwithstanding the proposed change, it will
still remain highly competitive and would continue to attract order
flow to the Exchange.
---------------------------------------------------------------------------

    \15\ See supra note 6.
    \16\ See supra note 7.
---------------------------------------------------------------------------

The Market Maker Posting Tiers and Market Maker Non-Penny Incentive
    The Exchange believes that the proposed (identical) change to the
Market Maker Posting Tiers and Market Maker Non-Penny Incentive would
continue to attract order flow to the Exchange because the limitation
on the qualifying interest (from all posted interest to Market Maker
posted interest) is offset by the significantly reduced volume
requirement (from 0.80% to 0.15%). In addition, notwithstanding this
proposed modification, the Exchange notes that OTP Holders are still
eligible to qualify for the existing alternative (and unchanged)
qualification basis in each of the Market Maker Posting Tiers and
Market Maker Non-Penny Incentive for eligible executions.\17\ By
continuing to provide such alternative methods to qualify for the
Market Maker Posting Tiers and Market Maker Non-Penny Incentive, the
Exchange believes the opportunities to qualify for credits is
increased, which benefits all participants through increased volume to
the Exchange.
---------------------------------------------------------------------------

    \17\ See supra notes 8 and 9.
---------------------------------------------------------------------------

    Finally, the proposed modification to the Market Maker Posting
Tiers and Market Maker Non-Penny Incentive is designed to incent OTP
Holders to transact more Market Maker volume on the Exchange, which may
result in an increase of volume and liquidity for all market
participants by providing more trading opportunities and tighter
spreads, and may lead to a corresponding increase in order flow from
other market participants.
    To the extent the proposed rule change continues to attract greater
volume and liquidity, by encouraging OTP Holders (and their affiliates)
to increase their options volume on the Exchange in an effort to
achieve higher credits, the Exchange believes the proposed change would
improve the Exchange's overall competitiveness and strengthen its
market quality for all market participants. In the backdrop of the
competitive environment in which the Exchange operates, the proposed
rule changes are a reasonable attempt by

the Exchange to increase the depth of its market and improve its market
share relative to its competitors.
The Proposed Rule Change Is an Equitable Allocation of Credits and Fees
    The Exchange believes the proposed rule change is an equitable
allocation of its fees and credits. The proposal is based on the amount
and type of business transacted on the Exchange and OTP Holders can opt
to avail themselves of the credits and discounts or not. Moreover, the
proposal is designed to incent OTP Holders to aggregate all liquidity-
taking interest at the Exchange as a primary execution venue and to
continue to attract Market Maker posting interest on the Exchange. To
the extent that the proposed change attracts more opportunities for
execution of Customer and Market Maker posted interest on the Exchange,
this increased order flow would continue to make the Exchange a more
competitive venue for order execution. Thus, the Exchange believes the
proposed rule change would improve market quality for all market
participants on the Exchange and, as a consequence, attract more order
flow to the Exchange thereby improving market-wide quality and price
discovery.
The Proposed Rule Change Is Not Unfairly Discriminatory
    The Exchange believes it is not unfairly discriminatory to modify
the Take Fee Discount because the proposed modification would align
Exchange fees with similar fees on other options markets \18\ and would
be available to all similarly-situated market participants on an equal
and non-discriminatory basis. The Exchange believes the proposed
changes are not unfairly discriminatory because the discounts and
credits are available to all similarly-situated market participants on
an equal and non-discriminatory basis.
---------------------------------------------------------------------------

    \18\ See supra note 7.
---------------------------------------------------------------------------

    The proposals are based on the amount and type of business
transacted on the Exchange and OTP Holders are not obligated to try to
achieve the enhanced qualifications, nor are they obligated to execute
liquidity-taking interest or posted interest. To the extent that the
proposed change attracts more interest, including liquidity-taking and
Market Maker posting interest, to the Exchange, this increased order
flow would continue to make the Exchange a more competitive venue for
order execution. Thus, the Exchange believes the proposed rule change
would improve market quality for all market participants on the
Exchange and, as a consequence, attract more order flow to the Exchange
thereby improving market-wide quality and price discovery. The
resulting increased volume and liquidity would provide more trading
opportunities and tighter spreads to all market participants and thus
would promote just and equitable principles of trade, remove
impediments to and perfect the mechanism of a free and open market and
a national market system and, in general, to protect investors and the
public interest.
    Finally, the Exchange believes that it is subject to significant
competitive forces, as described below in the Exchange's statement
regarding the burden on competition.

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

    In accordance with Section 6(b)(8) of the Act, the Exchange does
not believe that the proposed rule change would impose any burden on
competition that is not necessary or appropriate in furtherance of the
purposes of the Act. Instead, as discussed above, the Exchange believes
that the proposed changes would encourage the submission of additional
liquidity to a public exchange, thereby promoting market depth, price
discovery and transparency and enhancing order execution opportunities
for all market participants. As a result, the Exchange believes that
the proposed change furthers the Commission's goal in adopting
Regulation NMS of fostering integrated competition among orders, which
promotes ``more efficient pricing of individual stocks for all types of
orders, large and small.'' \19\
---------------------------------------------------------------------------

    \19\ See Reg NMS Adopting Release, supra note 12, at 37499.
---------------------------------------------------------------------------

    Intramarket Competition. The proposed change is designed to attract
additional order flow to the Exchange, including take-liquidity
interest and Market Maker posting interest. The Exchange believes that
the proposed modifications would incent OTP Holders to direct their
liquidity-taking and Market Maker order flow to the Exchange. Greater
liquidity benefits all market participants on the Exchange and
increased liquidity-taking order flow and posted Market Maker interest
would increase opportunities for execution of other trading interest.
The proposed modifications would be available to all similarly-situated
market participants and, as such, the proposed change would not impose
a disparate burden on competition among market participants on the
Exchange.
    Intermarket Competition. The Exchange operates in a highly
competitive market in which market participants can readily favor one
of the 16 competing option exchanges 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
exchanges and to attract order flow to the Exchange. Based on publicly-
available information, and excluding index-based options, no single
exchange has more than 16% of the market share of executed volume of
multiply-listed equity and ETF options trades.\20\ Therefore, currently
no exchange possesses significant pricing power in the execution of
multiply-listed equity & ETF options order flow. More specifically, in
July 2021, the Exchange had less than 13% market share of executed
volume of multiply-listed equity & ETF options trades.\21\
---------------------------------------------------------------------------

    \20\ See supra note 13.
    \21\ Based on OCC data for monthly volume of equity-based
options and monthly volume of ETF-based options, see id., the
Exchange's market share in equity-based options increased from
10.71% for the month of July 2020 to 12.15% for the month of July
2021.
---------------------------------------------------------------------------

    The Exchange believes that the proposed rule change reflects this
competitive environment because it modifies the Exchange's fees in a
manner designed to incent OTP Holders to direct trading interest
(particularly both sides of a transaction and Market Maker interest) to
the Exchange, to provide liquidity and to attract order flow, which
would align Exchange fee incentives with those charged by other options
exchanges.\22\ To the extent that this purpose is achieved, all the
Exchange's market participants should benefit from the improved market
quality and increased opportunities for price improvement.
---------------------------------------------------------------------------

    \22\ See supra note 7.
---------------------------------------------------------------------------

    The Exchange believes that the proposed change could promote
competition between the Exchange and other execution venues, including
those that currently offer similar discounts for sending both sides of
a transaction, by encouraging additional orders to be sent to the
Exchange for execution.

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 foregoing rule change is effective upon filing pursuant to
Section

19(b)(3)(A) \23\ of the Act and subparagraph (f)(2) of Rule 19b-4 \24\
thereunder, because it establishes a due, fee, or other charge imposed
by the Exchange.
---------------------------------------------------------------------------

    \23\ 15 U.S.C. 78s(b)(3)(A).
    \24\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of such proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings under
Section 19(b)(2)(B) \25\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
---------------------------------------------------------------------------

    \25\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------

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-NYSEArca-2021-79 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-NYSEArca-2021-79. 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-NYSEArca-2021-79, and should be
submitted on or before October 6, 2021.
---------------------------------------------------------------------------

    \26\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\26\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-19862 Filed 9-14-21; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 88, Number 5 (Monday, January 9, 2023)]
[Notices]
[Pages 1306-1307]
[FR Doc No: 2023-00119]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 96599; File No. SR-Phlx-2022-50]

Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend Options 9,
Section 13

January 3, 2023.
    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 December 23, 2022, Nasdaq PHLX LLC (``Phlx'' or ``Exchange'') filed
with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I and II below, which Items
have been prepared by the Exchange. The Commission is publishing this
notice to solicit comments on the proposed rule change from interested
persons.
---------------------------------------------------------------------------

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

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

    The Exchange proposes to amend Options 9, Section 13, Position
Limits.
    The text of the proposed rule change is available on the Exchange's
website at https://listingcenter.nasdaq.com/rulebook/phlx/rules, at the
principal office of the Exchange, and at the Commission's Public
Reference Room.

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

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

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

1. Purpose
    The Exchange proposes to amend Options 9, Section 13(a) related to
Position Limits. Specifically, the Exchange proposes to remove rule
text which provides, ``Standard and Poor's Depositary Receipts
(``SPDRs''), which shall have no position limits.'' Today, the position
limit for SPDR[supreg] S&P 500[supreg] ETF Trust (``SPY'') is 3,600,000
contracts on the same side of the market, as reflected within Options
9, Section 13(a).
    In 2018, Phlx filed a rule change which amended the position limits
for SPY.\3\ Previously, SPY was subject to a pilot program that
provided no position limits on options overlying SPY.\4\ The pilot
program, which was set to expire on July 12, 2018, was terminated and,
in lieu of extending the SPY Pilot Program for another year, the
Exchange established position and exercise limits for options on SPY of
1,800,000 contracts with such change becoming operative on July 12,
2018.\5\ Subsequently, the SPY position and exercise limits were
amended from 1,800,000 to 3,600,000.\6\
---------------------------------------------------------------------------

    \3\ See Securities Exchange Act Release No. 83412 (June 12,
2018), 83 FR 28298 (June 18, 2018) (SR-Phlx-2018-44) (Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend
Rule 1001, Entitled ``Position Limits'').
    \4\ Id.
    \5\ Id.
    \6\ See Securities Exchange Act Release No. 89153 (June 25,
2020), 85 FR 39619 (July 1, 2020) (SR-Phlx-2020-30) (Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend
Options 9, Section 13 To Increase the Position Limits for Options on
Certain Exchange-Traded Funds).
---------------------------------------------------------------------------

    In 2018 \7\ and 2020,\8\ the Exchange proposed to remove rule text
from then Rule 1001 (now Options 9, Section 13) \9\ regarding the
aforementioned pilot program, but inadvertently did not remove the
sentence setting no position limits when the Exchange added the new SPY
position limits. At this time, the Exchange proposes to remove the
sentence which was eliminated with the 2018 Rule Change so that there
is no confusion that the SPY limits are 3,600,000 contracts on the same
side of the market, as currently reflected in Options 9, Section 13(a).
---------------------------------------------------------------------------

    \7\ See note 4 above.
    \8\ See note 7 above.
    \9\ See Securities Exchange Act Release No. 88213 (February 14,
2020), 85 FR 9859 (February 20, 2020) (SR-Phlx-2020-03) (Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To
Relocate Rules From Its Current Rulebook Into Its New Rulebook
Shell).
---------------------------------------------------------------------------

    Finally, the Exchange proposes a technical amendment to remove a
stray open parenthesis within Options 9, Section 13(a).
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 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.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78f(b)
    \11\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange believes that correcting the rule text within Options
9, Section 13(a) by removing the rule text stating that SPY has no
position limits will protect investors and the public interest by
removing confusing and incorrect rule text. Also, removing inadvertent
and conflicting rule text regarding the SPY position limits, which
applied to an expired pilot program, will make clear that the current
SPY position limits are 3,600,000 contracts on the same side of the
market.

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

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

    The Exchange believes that correcting the rule text within Options
9, Section 13(a) by removing the rule text stating that SPY has no
position limits will protect investors and the public interest by
removing confusing and incorrect rule text. Also, removing inadvertent
and conflicting rule text regarding the SPY position limits, which
applied to an expired pilot program, will make clear that the current
SPY position limits are 3,600,000 contracts on the same side of the
market.

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

    No written comments were either solicited or received.

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

    Because the foregoing proposed rule change does not: (i)
significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days after the date of the filing, or such
shorter time as the Commission may designate if consistent with the
protection of investors and the public interest, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \12\ and Rule 19b-
4(f)(6) \13\ thereunder.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78s(b)(3)(A).
    \13\ 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, along
with a brief description and text of the proposed rule change, at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) \14\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\15\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposed
rule change may become operative upon filing. The Exchange states that
its proposal to remove the incorrect rule text stating that SPY has no
position limits will protect investors and the public interest by
making clear that the current SPY position limits are 3,600,000
contracts on the same side of the market. The Commission believes that
waiver of the 30-day operative delay is consistent with the protection
of investors and the public interest because the proposal will
eliminate outdated and potentially confusing rule text, thereby
enhancing the clarity of the Exchange's rule, and the proposal also
does not raise any new or novel issues. Therefore, the Commission
hereby waives the operative delay and designates the proposal operative
upon filing.\16\
---------------------------------------------------------------------------

    \14\ 17 CFR 240.19b-4(f)(6).
    \15\ 17 CFR 240.19b-4(f)(6)(iii).
    \16\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission 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 proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include
File Number SR-Phlx-2022-50 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-Phlx-2022-50. 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 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. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-Phlx-2022-50 and should be submitted on
or before January 30, 2023.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
---------------------------------------------------------------------------

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

Sherry R. Haywood.
Assistant Secretary.
[FR Doc. 2023-00119 Filed 1-6-23; 8:45 am]
BILLING CODE 8011-01-P