[Federal Register: October 16, 2007 (Volume 72, Number 199)]
[Proposed Rules]
[Page 58572-58577]
[DOCID:fr16oc07-33]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 81

[EPA-R04-OAR-2007-0958-200744; FRL-8482-6]

Determination of Nonattainment and Reclassification of the
Atlanta, GA, 8-Hour Ozone Nonattainment Area

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: EPA is proposing to find that the Atlanta, Georgia marginal 8-
hour nonattainment ozone area has failed to attain the 8-hour ozone
national ambient air quality standard (``NAAQS'' or ``standard'') by
June 15, 2007, the attainment deadline set forth in the Clean Air Act
(CAA) and Code of Federal Regulations (CFR) for marginal nonattainment
areas. If EPA finalizes this finding, the Atlanta, Georgia area will
then be reclassified, by operation of law, as a moderate 8-hour ozone
nonattainment area. The moderate area attainment date for the Atlanta,
Georgia area would then be ``as expeditiously as practicable,'' but no
later than June 15, 2010. Once reclassified, Georgia must submit a
State Implementation Plan (SIP) revision that meets the 8-hour ozone
nonattainment requirements for moderate areas, as required by the CAA.
In this action, EPA is also proposing the schedule for Georgia's
submittal of the SIP revision required for moderate areas once the area
is reclassified.

DATES: Comments must be received on or before November 15, 2007.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R04-
OAR-2007-0958, by one of the following methods:
    1. http://www.regulations.gov: Follow the on-line instructions for

submitting comments.
    2. E-mail<EMAIL_ADDRESS>    3. Fax:<PHONE_NUMBER>.
    4. Mail: EPA-R04-OAR-2007-0958, Regulatory Development Section, Air
Planning Branch, Air, Pesticides and Toxics Management Division, U.S.
Environmental Protection Agency, Region 4, 61 Forsyth Street, SW.,
Atlanta, Georgia 30303-8960.
    5. Hand Delivery or Courier: Stacy Harder, Regulatory Development
Section, Air Planning Branch, Air, Pesticides and Toxics Management
Division, U.S. Environmental Protection Agency, Region 4, 61 Forsyth
Street, SW., Atlanta, Georgia 30303-8960. Such deliveries are only
accepted during the Regional Office's normal hours of operation. The
Regional Office's official hours of business are Monday through Friday,
8:30 to 4:30, excluding Federal holidays.
    Instructions: Direct your comments to Docket ID No. EPA-R04-OAR-
2007-0958. EPA's policy is that all comments received will be included
in the public docket without change and may be made available online at
http://www.regulations.gov, including any personal information provided,

unless the comment includes information claimed to be Confidential
Business Information (CBI) or other information whose disclosure is
restricted by statute. Do not submit through http://www.regulations.gov or e-

mail, information that you consider to be CBI or otherwise protected.
The http://www.regulations.gov Web site is an ``anonymous access'' system,

which means EPA will not know your identity or contact information
unless you provide it in the body of your comment. If you send an e-
mail comment directly to EPA without going through http://www.regulations.gov,

your e-mail address will be automatically captured and included as part
of the comment that is placed in the public docket and made available
on the Internet. If you submit an electronic comment, EPA recommends
that you include your name and other contact information in the body of
your comment and with any disk or CD-ROM you submit. If EPA cannot read
your comment due to technical difficulties and cannot contact you for
clarification, EPA may not be able to consider your comment. Electronic
files should avoid the use of special characters, any form of
encryption, and be free of any defects or

viruses. For additional information about EPA's public docket visit the
EPA Docket Center homepage at http://www.epa.gov/epahome/dockets.htm.

    Docket: All documents in the electronic docket are listed in the
http://www.regulations.gov index. Although listed in the index, some

information is not publicly available, i.e., CBI or other information
whose disclosure is restricted by statute. Certain other material, such
as copyrighted material, is not placed on the Internet and will be
publicly available only in hard copy form. Publicly available docket
materials are available either electronically in http://www.regulations.gov or

in hard copy at the Regulatory Development Section, Air Planning
Branch, Air, Pesticides and Toxics Management Division, U.S.
Environmental Protection Agency, Region 4, 61 Forsyth Street, SW.,
Atlanta, Georgia 30303-8960 or the Air Planning Branch, U.S.
Environmental Protection Agency. EPA requests that if at all possible,
you contact the persons listed in the FOR FURTHER INFORMATION CONTACT
section to schedule your inspection. The Regional Office's official
hours of business are Monday through Friday, 8:30 to 4:30, excluding
Federal holidays.

FOR FURTHER INFORMATION CONTACT: Stacy Harder, Air Planning Branch,
Air, Pesticides and Toxics Management Division, U.S. EPA Region 4, 61
Forsyth Street, SW., Atlanta, Georgia 30303-8960. Phone: (404) 562-
9029. E-mail<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Table of Contents

I. What Is the Background for This Proposed Action?
    A. What Are the National Ambient Air Quality Standards?
    B. What Is the Standard for 8-Hour Ozone?
    C. What Is a SIP and How Does It Relate to the NAAQS for 8-Hour
Ozone?
    D. What Is the Atlanta, Georgia Nonattainment Area, and What Is
Its Current 8-Hour Ozone Nonattainment Classification?
    E. What Are the CAA Provisions Regarding Determinations of
Nonattainment and Reclassifications?
II. What Is EPA's Evaluation of the Atlanta Area's 8-Hour Ozone
Data?
III. What Action Is EPA Proposing?
A. Determination of Nonattainment, Reclassification of Atlanta
Nonattainment Area and New Attainment Date
    B. Proposed Date for Submitting a Revised SIP for the Atlanta
Area
IV. Proposed Action
V. Statutory and Executive Order Reviews

I. What Is the Background for this Proposed Action?

A. What Are the National Ambient Air Quality Standards?

    The CAA requires EPA to establish a NAAQS for pollutants that ``may
reasonably be anticipated to endanger public health and welfare'' and
to develop a primary and secondary standard for each NAAQS. The primary
standard is designed to protect human health with an adequate margin of
safety and the secondary standard is designed to protect public welfare
and the environment. EPA has set NAAQS for six common air pollutants
referred to as criteria pollutants: carbon monoxide, lead, nitrogen
dioxide, ozone, particulate matter, and sulfur dioxide. These standards
present state and local governments with the air quality levels they
must meet to comply with the CAA. Also, these standards allow the
American people to assess whether or not the air quality in their
communities is healthful.

B. What Is the Standard for 8-Hour Ozone?

    On July 18, 1997, EPA promulgated a revised 8-hour ozone standard
of 0.08 parts per million (ppm). This new standard is more stringent
than the previous 1-hour ozone standard. Under EPA regulations at 40
CFR part 50, the 8-hour ozone standard is attained when the 3-year
average of the annual fourth highest daily maximum 8-hour average
ambient air quality ozone concentration is less than or equal to 0.08
ppm (i.e., 0.084 ppm when rounding is considered). (See, 69 FR 23857
(April 30, 2004) for further information.) Ambient air quality
monitoring data for the 3-year period must meet a data completeness
requirement. The ambient air quality monitoring data completeness
requirement is met when the average percent of days with valid ambient
monitoring data is greater than 90 percent, and no single year has less
than 75 percent data completeness as determined in Appendix I of part
50. Specifically, section 2.3 of 40 CFR part 50, Appendix I,
``Comparisons with the Primary and Secondary Ozone Standards'' states:
    ``The primary and secondary ozone ambient air quality standards are
met at an ambient air quality monitoring site when the 3-year average
of the annual fourth-highest daily maximum 8-hour average ozone
concentration is less than or equal to 0.08 ppm. The number of
significant figures in the level of the standard dictates the rounding
convention for comparing the computed 3-year average annual fourth-
highest daily maximum 8-hour average ozone concentration with the level
of the standard. The third decimal place of the computed value is
rounded, with values equal to or greater than 5 rounding up. Thus, a
computed 3-year average ozone concentration of 0.085 ppm is the
smallest value that is greater than 0.08 ppm.''

C. What Is a SIP and How Does It Relate to the NAAQS for 8-Hour Ozone?

    Section 110 of the CAA requires states to develop air pollution
regulations and control strategies to ensure that state air quality
meets the NAAQS established by EPA. Each state must submit these
regulations and control strategies to EPA for approval and
incorporation into the federally-enforceable SIP. Each federally-
approved SIP protects air quality primarily by addressing air pollution
at its point of origin. They may contain state regulations or other
enforceable documents and supporting information such as emission
inventories, monitoring networks, and modeling demonstrations.

D. What Is the Atlanta, Georgia Nonattainment Area, and What Is Its
Current 8-Hour Ozone Nonattainment Classification?

    The Atlanta 8-hour ozone nonattainment area is located in Northern
Georgia and consists of Barrow, Barton, Carroll, Cherokee, Clayton,
Cobb, Coweta, Dekalb, Douglas, Fayette, Forsyth, Fulton, Gwinnett,
Henry, Newton, Paulding, Pickens, Rockdale, Spaulding, and Walton
Counties. For areas subject to Subpart 2 of the CAA, such as the
Atlanta nonattainment area, the maximum period for attainment runs from
the effective date of designations and classifications for the 8-hour
ozone NAAQS and will be the same period as provided in Table 1 of CAA
Section 181(a): Marginal--3 years; Moderate--6 years; Serious--9 years,
Severe--15 or 17 years; and Extreme--20 years. The Phase I Ozone
Implementation Rule (April 30, 2004, 69 FR 23951) provides for
classification of the 8-hour ozone NAAQS (40 CFR 51.903). The effective
date of designations and classifications for the 8-hour ozone NAAQS was
June 15, 2004. See, April 30, 2004, 69 FR 23858.
    The Atlanta area was initially designated nonattainment for the 8-
hour ozone standard on April 30, 2004, and classified ``marginal''
based on a design value of .091 parts per million (ppm), with an
attainment date of June 15, 2007. The design value of an area, which
characterizes the severity of the air quality concern, is represented
by

the annual fourth-highest daily maximum 8-hour average ozone
concentration measured at each monitor averaged over any three-year
period.

E. What Are the CAA Provisions Regarding Determinations of
Nonattainment and Reclassifications?

    Section 181(b)(2) prescribes the process for making determinations
upon failure of an ozone nonattainment area to attain by its attainment
date, and for reclassification of an ozone nonattainment area. Section
181(b)(2)(A) of the CAA requires that EPA determine, based on the
area's design value (as of the attainment date), whether an ozone
nonattainment area attained the ozone standard by that date. For
marginal, moderate and serious areas, if EPA finds that the
nonattainment area has failed to attain the ozone standard by the
applicable attainment date, the area must be reclassified by operation
of law to the higher of (1) the next higher classification for the
area, or (2) the classification applicable to the area's design value
as determined at the time of the required Federal Register notice.
Section 181(b)(2)(B) requires EPA to publish in the Federal Register a
notice identifying any area that has failed to attain by its attainment
date and the resulting reclassification. Different circumstances apply
to severe and extreme areas.

II. What Is EPA's Evaluation of the Atlanta Area's 8-Hour Ozone Data?

    EPA makes attainment determinations for ozone nonattainment areas
using available quality-assured air quality data. Within the Atlanta
area, ground-level ozone is measured at various monitors. In recent
years, the Confederate Avenue monitor has measured some of the highest
8-hour average ozone concentrations in the Atlanta area. The fourth-
highest daily maximum readings for 2004, 2005, and 2006 in Atlanta are
.092, .092, and .099 ppm, respectively. The 2004 fourth-highest daily
maximum reading was from the Gwinnett Tech monitor, the 2005 fourth-
highest daily maximum reading was from the Confederate Avenue monitor
in Fulton County and the 2006 fourth-highest daily maximum reading was
from the Conyers Monastery monitor in Rockdale County. For the Atlanta
ozone nonattainment area, the attainment determination is based on
2004-2006 air quality data. The area has a 2004-2006 design value of
.091 ppm. Therefore, the Atlanta area did not attain the 8-hour ozone
NAAQS by the June 15, 2007, deadline for marginal areas.

               Table 1.--Atlanta Area Fourth Highest 8-Hour Ozone Concentrations and Design Values
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                                                      Fourth highest daily maximum              Design value  3-
                  Site                   ------------------------------------------------------   year average
                                                2004              2005              2006           (2004-2006)
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GA National Guard--Cobb Co..............             0.073             0.081             0.093             0.082
U. of W.GA at Newnan--Coweta Co.........             0.083             0.078             0.086             0.082
S. Dekalb--Dekalb Co....................             0.084             0.087             0.096             0.089
Idlewood Rd.--Dekalb Co.................             0.088             0.084             0.094             0.088
Douglasville W.--Douglas Co.............              0.08             0.089             0.095             0.088
Fayetteville--Fayette Co................             0.084             0.086              0.09             0.086
Confederate Ave.--Fulton Co.............             0.089             0.092             0.092             0.091
Gwinnett Tech--Gwinnett Co..............             0.092             0.082             0.096             0.090
Henry Co. Ext. Office--Henry Co.........             0.085             0.089             0.095             0.089
Yorkville--Paulding Co..................             0.073             0.082             0.084             0.091
Conyers Monastery--Rockdale Co..........             0.087             0.088             0.099             0.091
----------------------------------------------------------------------------------------------------------------

    Under Sections 172(a)(2)(C) and 181(a)(5) of the CAA, an area can
qualify for up to two 1-year extensions of its attainment date based on
the number of exceedances in the attainment year and whether the state
has complied with all requirements and commitments pertaining to the
area in the applicable SIP. For the 8-hour standard, if an area's
fourth-highest daily 8-hour average in the attainment year is 0.084 ppm
or less (40 CFR 51.907), the area is eligible for up to two 1-year
attainment date extensions. The attainment year is the year immediately
preceding the nonattainment area's attainment date. For Atlanta, the
attainment year is 2006. In 2006, the maximum fourth-highest daily 8-
hour average value was 0.99 ppm. Based on this information, the Atlanta
area currently does not qualify for a 1-year extension of the
attainment date.
    Section 181(b)(2)(A) of the CAA provides that, when EPA finds that
an area failed to attain by the applicable date, the area is
reclassified by operation of law to the higher of: the next higher
classification, or the classification applicable to the area's ozone
design value at the time of the required notice under Section
181(b)(2)(B). Section 181(b)(2)(B) requires EPA to publish a notice in
the Federal Register identifying the reclassification status of an area
that has failed to attain the standard by its attainment date. The
classification that would be applicable to the Atlanta area's ozone
design value at the time of this notice is ``marginal'' because the
area's 2006 calculated design value, based on quality-assured ozone
monitoring data from 2004-2006, is 0.091 ppm. By contrast, the next
higher classification for the Atlanta area is ``moderate.'' Because
``moderate'' is a higher nonattainment classification than ``marginal''
under the CAA statutory scheme, upon the effective date of a final
rulemaking, the Atlanta area would be reclassified by operation of law
as ``moderate,'' for failing to attain the standard by the marginal
area applicable attainment date of June 15, 2007.

III. What Action Is EPA Proposing?

A. Determination of Nonattainment, Reclassification of Atlanta
Nonattainment Area and New Attainment Date

    Pursuant to section 181(b)(2), EPA is proposing to find that the
Atlanta area has failed to attain the 8-hour ozone NAAQS by the June
15, 2007, attainment deadline prescribed under the CAA for marginal
ozone nonattainment areas. When EPA finalizes this finding, and it
takes effect, the Atlanta area will be reclassified by operation of law
from marginal nonattainment to moderate nonattainment. Moderate areas
are required to attain the standard ``as expeditiously as
practicable,'' but no later than 6 years after designation or June 15,
2010. The ``as expeditiously as practicable'' attainment date will be
determined as part of the action on the

required SIP submittal demonstrating attainment of the 8-hour ozone
standard. EPA is proposing a schedule by which Georgia will submit the
SIP revision necessary for the proposed reclassification to moderate
nonattainment of the 8-hour ozone standard.

B. Proposed Date for Submitting a Revised SIP for the Atlanta Area

    When an area is reclassified, EPA has the authority under section
182(i) of the Act to adjust the Act's submittal deadlines for any new
SIP revisions that are required as a result of the reclassification.
Pursuant to 40 CFR 51.908(d), for each nonattainment area, the state
must provide for implementation of all control measures needed for
attainment no later than the beginning of the attainment year ozone
season. The attainment year ozone season is the ozone season
immediately preceding a nonattainment area's attainment date, in this
case, 2009 (40 CFR 51.900(g)). The ozone season is the ozone monitoring
season as defined in 40 CFR part 58, Appendix D, section 4.1, Table D-3
(October 17, 2006, 71 FR 61236). For the purposes of this
reclassification for the Atlanta, Georgia area, March 1st is the
beginning of the ozone monitoring season. As a result of discussions
with the State, EPA proposes that the required SIP revision be
submitted as expeditiously as practicable, but not later than December
31, 2008.
    A revised SIP must include the following moderate area
requirements: (1) An attainment demonstration (40 CFR 51.908); (2)
provisions for reasonably available control technology and reasonably
available control measures (40 CFR 51.912); (3) reasonable further
progress reductions in volatile organic compound (VOC) and/or nitrogen
oxides (NOX) emissions in Cherokee, Clayton, Cobb, Coweta,
Dekalb, Douglas, Fayette, Forsyth, Fulton, Gwinnett, Henry, Paulding
and Rockdale Counties (the 13 counties included in the Atlanta 1-hour
ozone nonattainment area) and reasonable further progress reductions in
VOC emissions in Barrow, Barton, Carroll, Newton, Pickens, Spaulding,
and Walton Counties (40 CFR 51.910); (4) contingency measures to be
implemented in the event of failure to meet a milestone or attain the
standard (CAA 172(c)(9)); (5) a vehicle inspection and maintenance
program (40 CFR 51.350); and (6) nitrogen oxide and VOC emission
offsets of 1.15 to 1 for major source permits (40 CFR 51.165(a)). (See
also, the requirements for moderate ozone nonattainment areas set forth
in CAA section 182(b).)

IV. Proposed Action

    Pursuant to CAA section 181(b)(2), EPA is proposing to find that
the Atlanta marginal 8-hour ozone area has failed to attain the 8-hour
ozone NAAQS by June 15, 2007. If EPA finalizes its proposal, the area
will, by operation of law, be reclassified as a moderate 8-hour ozone
nonattainment area. Pursuant to section 182(i) of the CAA, EPA is also
proposing the schedule for submittal of the SIP revision required for
moderate areas once the area is reclassified. EPA proposes that the
required SIP revision for Georgia be submitted as expeditiously as
practicable, but not later than December 31, 2008.

V. Statutory and Executive Order Reviews

A. Executive Order 12866, Regulatory Planning and Review

    This action is not a ``significant regulatory action'' under the
terms of Executive Order (EO) 12866 (58 FR 51735, October 4, 1993), and
is therefore not subject to review under the EO. The Agency has
determined that the finding of nonattainment would result in none of
the effects identified in the Executive Order. Under section 181(b)(2)
of the CAA, determinations of nonattainment are based upon air quality
considerations and the resulting reclassifications must occur by
operation of law.

B. Paperwork Reduction Act

    This rule does not impose an information collection burden under
the provisions of the Paperwork Reduction Act, 44 U.S.C. 3501 et seq.
This proposed action to reclassify the Atlanta area as a moderate ozone
nonattainment area and to adjust applicable deadlines does not
establish any new information collection burden. Burden means the total
time, effort, or financial resources expended by persons to generate,
maintain, retain, or disclose or provide information to or for a
Federal agency. This includes the time needed to review instructions;
develop, acquire, install, and utilize technology and systems for the
purposes of collecting, validating, and verifying information,
processing and maintaining information, and disclosing and providing
information; adjust the existing ways to comply with any previously
applicable instructions and requirements; train personnel to be able to
respond to a collection of information; search data sources; complete
and review the collection of information; and transmit or otherwise
disclose the information. An agency may not conduct or sponsor, and a
person is not required to respond to a collection of information unless
it displays a currently valid Office of Management and Budget (OMB)
control number. The OMB control numbers for EPA's regulations in 40 CFR
are listed in 40 CFR part 9.

C. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) generally requires an agency
to prepare a regulatory flexibility analysis of any rule subject to
notice and comment rulemaking requirements under the Administrative
Procedures Act or any other statute unless the agency certifies the
rule will not have a significant economic impact on a substantial
number of small entities. Small entities include small businesses,
small organizations, and small governmental jurisdictions.
    For purposes of assessing the impacts of this action on small
entities, small entity is defined as: (1) A small business that is a
small industrial entity as defined in the U.S. Small Business
Administration (SBA) size standards, see, 13 CFR 121; (2) a small
governmental jurisdiction that is a government of a city, county, town,
school district or special district with a population of less than
50,000; and (3) a small organization that is any not-for-profit
enterprise which is independently owned and operated and is not
dominant in its field. Determinations of nonattainment and the
resulting reclassification of nonattainment areas by operation of law
under section 181(b)(2) of the CAA do not in and of themselves create
any new requirements. Instead, this rulemaking only makes a factual
determination, and does not directly regulate any entities. After
considering the economic impacts of today's action on small entities, I
certify that this proposed rule will not have a significant economic
impact on a substantial number of small entities.

D. Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public
Law 104-4, establishes requirements for Federal agencies to assess the
effects of their regulatory actions on state, local, and Tribal
governments and the private sector. Under section 202 of the UMRA, EPA
generally must prepare a written statement, including a cost-benefit
analysis, for proposed and final rules with ``Federal mandates'' that
may result in expenditures to state, local, and Tribal governments, in
the aggregate, or to the private sector, of

$100 million or more in any one year. Before promulgating an EPA rule
for which a written statement is needed, section 205 of the UMRA
generally requires EPA to identify and consider a reasonable number of
regulatory alternatives and adopt the least costly, most cost-effective
or least burdensome alternative that achieves the objectives of the
rule. The provisions of section 205 do not apply when they are
inconsistent with applicable law. Moreover, section 205 allows EPA to
adopt an alternative other than the least costly, most cost-effective
or least burdensome alternative if the Administrator publishes with the
final rule an explanation to why that alternative was not adopted.
Before EPA establishes any regulatory requirements that may
significantly or uniquely affect small governments, including Tribal
governments, it must have developed under section 203 of the UMRA a
small government agency plan. The plan must provide for notifying
potentially affected small governments, enabling officials of affected
small governments to have meaningful and timely input in the
development of EPA regulatory proposals with significant Federal
intergovernmental mandates, and informing, educating, and advising
small governments on compliance with the regulatory requirements.
    This proposed action does not include a Federal mandate within the
meaning of UMRA that may result in expenditures of $100 million or more
in any one year by either state, local, or Tribal governments in the
aggregate or to the private sector, and therefore, is not subject to
the requirements of sections 202 and 205 of the UMRA. Also, EPA has
determined that this rule contains no regulatory requirements that
might significantly or uniquely affect small governments and therefore,
is not subject to the requirements of section 203. EPA believes, as
discussed previously in this document, that the finding of
nonattainment is a factual determination based upon air quality
considerations and that the resulting reclassification of the area must
occur by operation of law. Thus, EPA believes that the proposed finding
does not constitute a Federal mandate, as defined in section 101 of the
UMRA, because it does not impose an enforceable duty on any entity.

E. Executive Order 13132: Federalism

    Executive Order 13132, entitled ``Federalism'' (64 FR 43255, August
10, 1999), requires EPA to develop an accountable process to ensure
``meaningful and timely input by State and local officials in the
development of regulatory policies that have federalism implications.''
``Policies that have federalism implications'' is defined in the
Executive Order to include regulations that have ``substantial direct
effects 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.''
    This proposed rule does not have federalism implications. It will
not have substantial direct effects 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,
as specified in Executive Order 13132. This action merely proposes to
determine that the Atlanta area has not attained by its applicable
attainment date, and to reclassify the Atlanta area as a moderate ozone
nonattainment area and to adjust applicable deadlines. Thus, Executive
Order 13132 does not apply to this proposed rule.

F. Executive Order 13175: Consultation and Coordination With Indian
Tribal Governments

    Executive Order 13175, entitled, ``Consultation and Coordination
with Indian Tribal Governments'' (65 FR 67249, November 9, 2000),
requires EPA to develop an accountable process to ensure ``meaningful
and timely input by tribal officials in the development of regulatory
policies that have tribal implications.'' This action does not have
``Tribal implications'' as specified in Executive Order 13175. This
action merely proposes to determine that the Atlanta area has not
attained by its applicable attainment date, and to reclassify the
Atlanta area as a moderate ozone nonattainment area and to adjust
applicable deadlines. The CAA and the Tribal Authority Rule establish
the relationship of the Federal government and Tribes in developing
plans to attain the NAAQS, and this rule does nothing to modify that
relationship. Thus, Executive Order 13175 does not apply to this
proposed rule.

Executive Order 13045: Protection of Children From Environmental Health
and Safety Risks

    Executive Order 13045: ``Protection of Children From Environmental
Health and Safety Risks'' (62 FR 19885, April 23, 1997), applies to any
rule that (1) is determined to be ``economically significant'' as
defined under Executive Order 12866, and (2) concerns an environmental
health or safety risk that EPA has reason to believe may have
disproportionate effect on children. If the regulatory action meets
both criteria, the Agency must evaluate the environmental health or
safety effects of the planned rule on children, and explain why the
planned regulation is preferable to other potentially effective and
reasonably feasible alternatives considered by the Agency. This action
is not subject to Executive Order 13045 because it is not economically
significant as defined in Executive Order 12866, and because the Agency
does not have reason to believe the environmental health risks or
safety risks addressed by this rule present a disproportionate risk to
children. This action merely proposes to determine that the Atlanta
area has not attained by its applicable attainment date, and to
reclassify the Atlanta area as a moderate ozone nonattainment area and
to adjust applicable deadlines.

H. Executive Order 13211: Actions That Significantly Affect Energy
Supply, Distribution, or Use

    This action is not subject to Executive Order 13211, ``Actions That
Significantly Affect Energy Supply, Distribution, or Use'' (66 FR
28355, May 22, 2001), because it is not a significant regulatory action
under Executive Order 12866.

I. National Technology Transfer Advancement Act

    As noted in the proposed rule, Section 12(d) of the National
Technology Transfer Advancement Act of 1995 (NTTAA), Public Law 104-
113, section 12(d) (15 U.S.C. 272 note) directs EPA to use voluntary
consensus standards (VCS) in its regulatory activities unless to do so
would be inconsistent with applicable law or otherwise impractical.
Voluntary consensus standards are technical standards (e.g., materials
specifications, test methods, sampling procedures, and business
practices) that are developed or adopted by VCS bodies. The NTTAA
directs EPA to provide Congress, through OMB, explanations when the
Agency decides not to use available and applicable VCS. This action
merely proposes to determine that the Atlanta area has not attained by
its applicable attainment date, and to reclassify the Atlanta area as a
moderate ozone nonattainment area and to adjust applicable deadlines.
Therefore, EPA did not consider the use of any voluntary consensus
standards.

J. Executive Order 12898: Federal Actions To Address Environmental
Justice in Minority Populations and Low-Income Populations

    Executive Order 12898 (59 FR 7629, February 16, 1994) establishes
federal executive policy on environmental justice. Its main provision
directs Federal agencies, to the greatest extent practicable and
permitted by law, to make environmental justice part of their mission
by identifying and addressing, as appropriate, disproportionately high
and adverse human health or environmental effects of their programs,
policies, and activities on minority populations and low-income
populations in the United States.
    EPA has determined that this proposed rule will not have
disproportionately high and adverse human health or environmental
effects on minority or low-income populations because it does not
affect the level of protection provided to human health or the
environment. This action merely proposes to determine that the Atlanta
area has not attained by its applicable attainment date, and to
reclassify the Atlanta area as a moderate ozone nonattainment area and
to adjust applicable deadlines.

List of Subjects in 40 CFR Part 81

    Environmental protection, Air pollution control, National parks,
Wilderness areas.

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

    Dated: October 9, 2007.
Russell L. Wright, Jr.,
Acting Regional Administrator, Region 4.
[FR Doc. E7-20342 Filed 10-15-07; 8:45 am]

BILLING CODE 6560-50-P


[Federal Register Volume 81, Number 33 (Friday, February 19, 2016)]
[Notices]
[Pages 8521-8522]
[FR Doc No: 2016-03448]

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DEPARTMENT OF HOMELAND SECURITY

Federal Emergency Management Agency

[Internal Agency Docket No. FEMA-4250-DR; Docket ID FEMA-2016-0001]

Missouri; Amendment No. 1 to Notice of a Major Disaster
Declaration

AGENCY: Federal Emergency Management Agency, DHS.

ACTION: Notice.

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

SUMMARY: This notice amends the notice of a major disaster declaration
for the State of Missouri (FEMA-4250-DR), dated January 21, 2016, and
related determinations.

DATES: Effective Date: February 10, 2016.

FOR FURTHER INFORMATION CONTACT: Dean Webster, Office of Response and
Recovery, Federal Emergency Management Agency, 500 C Street SW.,
Washington, DC 20472,<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: The notice of a major disaster declaration
for the State of Missouri is hereby amended to include the Public
Assistance program for the following areas among those areas determined
to have been adversely affected by the event declared a major disaster
by the President in his declaration of January 21, 2016.

    Bollinger, Cedar, Dade, Dallas, Douglas, Dunklin, Howell, Iron,
Ozark, Perry, Reynolds, St. Clair, Stoddard, Washington, and the
Independent City of St. Louis for Public Assistance.

    Barry, Camden, Cape Girardeau, Crawford, Franklin, Gasconade,
Greene, Jasper, Jefferson, Lawrence, Lincoln, McDonald, Newton,
Phelps, Pulaski, Scott, St. Charles, Ste. Genevieve, St. Louis,
Stone, Taney, Texas, and Webster Counties for Public Assistance
(already designated for Individual Assistance).

    The following Catalog of Federal Domestic Assistance Numbers
(CFDA) are to be used for reporting and drawing funds: 97.030,
Community Disaster Loans; 97.031, Cora Brown Fund; 97.032, Crisis
Counseling; 97.033, Disaster Legal Services; 97.034, Disaster
Unemployment Assistance (DUA); 97.046, Fire Management Assistance
Grant; 97.048, Disaster Housing Assistance to Individuals and
Households In Presidentially Declared Disaster Areas; 97.049,
Presidentially Declared Disaster Assistance--Disaster Housing
Operations for Individuals and Households; 97.050, Presidentially
Declared Disaster Assistance to Individuals and Households--Other
Needs; 97.036, Disaster Grants--Public Assistance (Presidentially
Declared Disasters); 97.039, Hazard Mitigation Grant.

W. Craig Fugate,
Administrator, Federal Emergency Management Agency.
[FR Doc. 2016-03448 Filed 2-18-16; 8:45 am]
 BILLING CODE 9111-23-P


[Federal Register Volume 78, Number 243 (Wednesday, December 18, 2013)]
[Notices]
[Pages 76664-76665]
[FR Doc No: 2013-30089]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-71073; File No. SR-CBOE-2013-102]

Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Order Granting Approval of Proposed Rule Change To
Establish Modified Hybrid Opening System Opening Procedures for All
Volatility Index Constituent Options

December 13, 2013.

I. Introduction

    On October 15, 2013, the Chicago Board Options Exchange,
Incorporated (``Exchange'' or ``CBOE'') filed with the Securities and
Exchange Commission (``Commission''), pursuant to Section 19(b)(1) of
the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4
thereunder,\2\ a proposed rule change to amend CBOE Rule 6.2B to
establish modified Hybrid Opening System (``HOSS'') opening procedures
for all option series that are used to calculate volatility indexes.
The proposed rule change was published for comment in the Federal
Register on October 31, 2013.\3\ The Commission received no comments on
the proposed rule change. This order grants approval of the proposed
rule change.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 70755 (October 25,
2013), 78 FR 65402 (``Notice'').
---------------------------------------------------------------------------

II. Description of the Proposed Rule Change

    According to the Exchange, on the expiration/final settlement date
for volatility index options and futures, modified HOSS opening
procedures are used for Hybrid 3.0 option series that are used to
calculate the exercise settlement/final settlement value for expiring
volatility index options and futures. Currently, standard expiration
options (i.e., third Friday expirations) on the S&P 500 index, which
are used to calculate the CBOE Volatility Index (``VIX''), are the only
Hybrid 3.0 options that use the modified HOSS opening procedures.
According to the Exchange, the main feature of the modified HOSS
opening procedures is the strategy order \4\ cut-off time for the SPX
option series used to calculate the exercise settlement/final
settlement value of VIX derivatives. Currently, all strategy orders
must be submitted by 8:15 a.m. (Chicago time).\5\ In limited
circumstances, strategy orders may be changed or cancelled.\6\
---------------------------------------------------------------------------

    \4\ Option orders that are related to positions in, or a trading
strategy involving, volatility index options or futures are known as
``strategy orders.'' See CBOE Rule 6.2B.01(c)(iii). CBOE Rule
6.2B.01(c)(iii)(B) sets forth the characteristics of strategy
orders.
    \5\ The applicable cut-off time for the entry of strategy orders
is established by the Exchange on a class-by-class basis. See CBOE
Rule 6.2B.01(c)(iii)(A) and CBOE Regulatory Circular RG08-43 (Cut-
Off Time for Submission of Strategy Orders for Participation in SPX
Modified HOSS Opening Procedure).
    \6\ See CBOE Rule 6.2B.01(c)(iii)(B).
---------------------------------------------------------------------------

    In addition to the VIX, CBOE and CBOE Futures Exchange, LLC
(``CFE'') also trade options and futures on other volatility indexes.
Currently, normal HOSS opening procedures are used on all days for the
constituent options in those volatility indexes because the constituent
options trade on the Hybrid platform. Moreover, the Exchange plans to
introduce CBOE Short-Term Volatility Index (``VXST'') options (to be
traded on CBOE) and VXST futures (to be traded on CFE) that expire
every Wednesday.\7\ The Exchange notes that the VXST will be calculated
using SPX option series that expire on every Friday, including standard
expiration SPX option series and non-standard expiration SPX option
series. Because some constituent SPX option series are Hybrid series,
the current modified HOSS opening procedures are not applicable. The
Exchange now proposes to adopt new Interpretation and Policy .08 to
Rule 6.2B to set forth the modified HOSS opening procedures for Hybrid
classes and series that are used to calculate all volatility indexes,
including the VXST, on the expiration/final settlement dates for
volatility index derivatives.\8\
---------------------------------------------------------------------------

    \7\ The VXST measures a 9-day period of expected volatility and
is calculated using SPX option series that expire in 9 days. The
Exchange plans to submit a separate filing to the Commission to list
VXST options and anticipates that CFE will list VXST futures prior
to CBOE listing VXST options.
    \8\ The Exchange also proposes other technical changes to Rules
6.2B.01 and 24.9(a)(5). See Notice, supra note 3, at 65405-06.
---------------------------------------------------------------------------

    Among other things, the Exchange proposes that, for 30-day
volatility indexes, the modified HOSS opening procedures would be
utilized on the days that the exercise settlement/final settlement
value is calculated for options or futures on such volatility indexes.
For short-term volatility indexes that measure a 9-day volatility
period, the modified HOSS opening procedures would be utilized every
Wednesday for Hybrid classes and series that are used to calculate such
volatility indexes.\9\
---------------------------------------------------------------------------

    \9\ If a Wednesday is an Exchange holiday or if the Friday in
the business week following a Wednesday is an Exchange holiday, then
the modified HOSS opening procedures would be utilized on a Tuesday.
See CBOE Rule 6.2B.08(a).

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

    The Exchange also proposes to establish criteria for identifying
strategy orders, a cut-off time for strategy orders to be established
by the Exchange on a class-by-class basis,\10\ and a prohibition
against changing or cancelling strategy orders.\11\ In addition, the
Exchange proposes that all other option orders for participation in the
modified HOSS opening procedures, and any change to or cancellation of
any such order, must be received prior to the applicable cut-off time
in order to participate at the opening price for the applicable option
series.\12\
---------------------------------------------------------------------------

    \10\ The strategy order cut-off time will be no earlier than
8:00 a.m. and no later than the opening of trading in the option
series.
    \11\ Similar to the existing modified HOSS opening procedures,
the Exchange would permit a strategy order to be changed or
cancelled after the strategy order cut-off time if the order is (i)
not executed in the modified HOSS opening procedures and the change
or cancellation is submitted after the modified HOSS opening
procedures have concluded, or (ii) changed or cancelled to correct a
legitimate error. See CBOE Rule 6.2B.08(c).
    \12\ The applicable cut-off time would be established by the
Exchange on a class-by-class basis, provided it would be no earlier
than 8:25 a.m. and no later than the opening of trading in the
option series. See CBOE Rule 6.2B.08(d).
---------------------------------------------------------------------------

    The Exchange represents that it currently conducts heightened
surveillance on the days when the modified HOSS opening procedures are
utilized. The Exchange further represents that those same heightened
surveillance practices will be utilized on every Wednesday and that
these surveillance practices will be adequate to monitor trading in all
constituent option series used to calculate volatility indexes. The
Exchange also expects to enhance surveillance practices in tandem with
any resultant trading volume growth.

III. Discussion and Commission Findings

    The Commission finds that the proposed rule change is consistent
with the requirements of the Act and the rules and regulations
thereunder applicable to a national securities exchange.\13\ In
particular, the Commission finds that the proposed rule change is
consistent with Section 6(b)(5) of the Act,\14\ which requires, among
other things, that the rules of a national securities exchange be
designed to prevent fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade, 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.
---------------------------------------------------------------------------

    \13\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
    \14\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The proposed modified HOSS opening procedures would apply only on
the expiration/final settlement dates for volatility index options and
futures. The normal HOSS opening procedures would apply on all other
days. Except for the rule provisions that the Exchange identifies as
applicable only to Hybrid 3.0 options,\15\ the proposed modified HOSS
opening procedures applicable to all volatility index constituent
options are similar to the existing modified HOSS opening procedures
applicable to VIX constituent options.\16\
---------------------------------------------------------------------------

    \15\ See Notice, supra note 3, at 65405.
    \16\ See CBOE Rule 6.2B.01.
---------------------------------------------------------------------------

    The Exchange states that the primary purpose of this proposed rule
change is to establish a strategy order cut-off time on expiration/
final settlement dates for options series that are used to calculate
the exercise settlement/final settlement value for volatility index
options and futures. As noted by the Exchange, applying a strategy
order cut-off time to volatility index constituent options on
expiration/final settlement dates will allow exposure of order
imbalances in the constituent options that resulted from unwinding
hedges for volatility index derivatives, allow market participants to
review and offset order imbalances, and facilitate a more stable
opening process because an option series will not open if there is an
imbalance. In addition, as noted by the Exchange, the strategy order
cut-off time could result in market participants submitting orders that
price-improve the constituent options.
    The other aspects of the proposed rule change, including the
technical amendments to CBOE Rules 6.2B.01 and 24.9(a)(5), as noted by
the Exchange, are intended to provide additional clarity to the
Exchange's rules, including in connection with the existence of
different volatility indexes that overlie different implied volatility
measurement periods.\17\
---------------------------------------------------------------------------

    \17\ The Exchange notes that it will submit a separate rule
filing to propose the listing of VXST options.
---------------------------------------------------------------------------

    The Commission believes that the proposed rule change is consistent
with the Act.

IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\18\ that the proposed rule change (SR-CBOE-2013-102) be, and
hereby is, approved.
---------------------------------------------------------------------------

    \18\ 15 U.S.C. 78s(b)(2).
    \19\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-30089 Filed 12-17-13; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 78, Number 83 (Tuesday, April 30, 2013)]
[Notices]
[Page 25263]
[FR Doc No: 2013-10136]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[P-13123-002--CA]

Eagle Mountain Pumped Storage Hydroelectric Project; Eagle Crest
Energy; Notice of Meeting With the Bureau of Land Management

    a. Date and Time of Meeting: Wednesday, May 8, 2013, at 9:00 a.m.
(Pacific Time)
    b. Location: In the vicinity of Palm Springs, California; however
the precise meeting location is still pending and will be provided in a
subsequent notice.
    c. FERC Contact: Kenneth Hogan,<PHONE_NUMBER>:
<EMAIL_ADDRESS>    d. Purpose of the Meeting: Commission staff will meet with the
staff of the Bureau of Land Management to improve agency coordination
and discuss the agencies' overlapping jurisdictions (pursuant to the
Federal Land Policy and Management Act and the Federal Power Act), on
the Eagle Mountain Pumped Storage Hydroelectric Project.
    e. All local, state, and federal agencies, tribes, and interested
parties, are hereby invited to observe the meeting in person.
    f. This meeting was originally noticed on July 17, 2012, and
subsequently postponed on August 3, 2012.

    Dated: April 23, 2013.
Kimberly D. Bose,
Secretary.
[FR Doc. 2013-10136 Filed 4-29-13; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register: June 23, 2010 (Volume 75, Number 120)]
[Notices]
[Page 35865-35871]
[DOCID:fr23jn10-140]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-62303; File No. SR-NYSEAmex-2010-53]

Self-Regulatory Organizations; Notice of Filing of Proposed Rule
Change by NYSE Amex LLC Amending Its Rules To Incorporate the Receipt
and Execution of Odd-Lot Interest Into the Round Lot Market and
Decommission the Use of the ``Odd-Lot System''

June 16, 2010.
    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 June 10, 2010, NYSE Amex LLC (the ``Exchange'' or ``NYSE
Amex'') 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 amend its rules to incorporate the receipt
and execution of odd-lot interest into the round lot market and
decommission the use of the ``Odd-lot System''. The text of the
proposed rule change is available at the Exchange, on the Commission's
Web site at http://www.sec.gov, the Commission's Public Reference Room,
and http://www.nyse.com.

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 incorporate
the receipt and execution of odd-lot interest into the round lot market
and decommission the use of the ``Odd-lot system.''\4\
---------------------------------------------------------------------------

    \4\ The Exchange notes that parallel changes are proposed to be
made to the rules of the New York Stock Exchange LLC (``NYSE''). See
SR-NYSE-2010-43.
---------------------------------------------------------------------------

Background
    Round lot interest on the Exchange is executed by Display
Book[supreg] \5\ pursuant to NYSE Amex Equities Rule 72 on a priority
or parity basis.\6\ Odd-lot interest, however, is processed in an
Exchange system designated solely for handling and execution of odd-lot

interest (the ``Odd-lot System'').\7\ The Odd-lot System is a separate
system from the Display Book that executes odd-lot interest and the
odd-lot portion of part of round lot (``PRL'') interest.\8\
---------------------------------------------------------------------------

    \5\ The Display Book system is an Exchange order management and
execution facility. The Display Book system receives and displays
interest to the DMM, provides the data feed for NYSE Amex
OpenBook[supreg] that is available to market participants, contains
order information and provides a mechanism to execute and report
transactions and publish results to the Consolidated Tape. The
Display Book system is connected to a number of other Exchange
systems for the purposes of comparison, surveillance, and reporting
information to customers and other market data and national market
systems. NYSE Amex OpenBook provides subscribers a real-time view of
the Exchange's limit-order book for all NYSE-Amex traded securities.
    \6\ NYSE Amex Equities Rule 72 provides that all market
participants receive an allocation of executed shares on an equal
basis (``parity'') with other interest available at that price. In
addition, where there is more than one bidder (offerer)
participating in an execution and one of the bids (offers) was
clearly established as the first made at a particular price and such
bid or offer is the only interest when such price is or becomes the
best bid or offer published by the Exchange (the ``Setting
Interest''), that [sic] the displayed portion of such Setting
Interest is entitled to priority. In order to qualify as Setting
Interest, it must have been the only interest quoted at a price.
Only the quoted (i.e., displayed) portion of the Setting Interest is
entitled to priority (``Priority Interest'').
    \7\ See NYSE Amex Equities Rule 124(a).
    In connection with the NYSE Euronext acquisition of The Amex
Membership Corporation (``AMC'') pursuant to an Agreement and Plan
of Merger, dated January 17, 2008 (the ``Merger''), the Exchange
relocated all equities trading conducted on the Exchange legacy
trading systems and facilities located at 86 Trinity Place, New
York, New York, to trading systems and facilities located at 11 Wall
Street, New York, New York (the ``Equities Relocation'') on December
1, 2008. The Exchange's equity trading systems and facilities at 11
Wall Street (the ``NYSE Amex Trading Systems'') are operated by the
NYSE on behalf of the Exchange. See Securities Exchange Act Release
No. 58705 (October 1, 2008), 73 FR 58995 (October 8, 2008) (SR-Amex
2008-63) (approving the Equities Relocation); Securities Exchange
Act Release No. 58833 (October 22, 2008), 73 FR 64642 (October 30,
2008) (SR-NYSE-2008-106) and Securities Exchange Act Release No.
58839 (October 23, 2008), 73 FR 64645 (October 30, 2008) (SR-
NYSEALTR-2008-03) (implementing the Bonds Relocation); Securities
Exchange Act Release No. 59022 (November 26, 2008), 73 FR 73683
(December 3, 2008) (SR-NYSEALTR-2008-10) (adopting amendments to
NYSE Amex Equities Rules to track changes to corresponding NYSE
Rules); Securities Exchange Act Release No. 59027 (November 28,
2008), 73 FR 73681 (December 3, 2008) (SR-NYSEALTR-2008-11)
(adopting amendments to Rule 62--NYSE Amex Equities to track changes
to corresponding NYSE Rule 62).
    \8\ PRL orders are for a size within the standard unit (round-
lot) of trading, which is 100 shares for most stocks, but contains a
portion that is smaller than the standard unit of trading, e.g. 199
shares. See Supplementary Material .40 of NYSE Amex Equities Rule
124.
---------------------------------------------------------------------------

    NYSE Amex Equities Rule 124 governs handling and execution of odd-
lot interest and the odd-lot portion of PRL interest in the Odd-lot
System. Pursuant to the provisions of NYSE Amex Equities Rule 124 all
odd-lot interest and odd-lot portion of PRL interest is executed
against the DMM as the contra party.\9\ NYSE Amex Equities Rule 124
outlines the complex pricing formula used to determine the price of
odd-lot executions. Generally, the execution price of odd-lot interest
is determined based on: (i) The price of executions in the round lot
market; (ii) whether the odd-lot interest was marketable or non-
marketable upon receipt in the Odd-lot system; and (iii) in certain
instances the Exchange system that initially received the interest.\10\
---------------------------------------------------------------------------

    \9\ See NYSE Amex Equities Rule 124(a).
    \10\ For a fuller discussion of the operation of the current
odd-lot system see, Securities Exchange Act Release No. 56551
(September 27, 2007), 72 FR 56415 (October 3, 2007) (SR-NYSE-2007-
82) (NYSE modifications to methodology of pricing and executing
orders in the Odd-lot system). See also Securities Exchange Act
Release No. 59614 (March 20, 2009), 74 FR 13501 (March 27, 2009)
(NYSE Alternext-2009-27) (modification to pricing and execution
methodology to execute odd-lot portion of the PRL orders pursuant to
pricing structure in NYSE Amex Equities Rule 124(c) and (d).);
Securities Exchange Act Release No. 60139 (June 18, 2009), 74 FR
30342 (June 25, 2009) (SR-NYSEAmex-2009-18) (Clarification of the
pricing methodology for the odd-lot portion of a PRL order and the
systems capable of accepting PRL and Good 'Til Cancelled Orders
during the implementation of Exchange system enhancements).
---------------------------------------------------------------------------

Proposed Amendments To Incorporate Odd-Lots and Odd-Lot Portion of PRL
Interest in the Round Lot Market
    The Exchange is proposing to terminate the Odd-lot System and
incorporate odd-lot interest and the odd-lot portion of PRL interest
into the round lot market thus enabling such interest to interact with
all other market interest and be priced in accordance with overall
supply and demand dynamics. Pursuant to the proposed rule change, odd-
lot interest and odd-lot portion of PRL interest will be accepted and
executed in the Display Book.
    In order to incorporate interest for fewer than 100 shares into the
round lot market, the Exchange proposes that the new unit of trading
for all securities be 1 share.\11\ Although the new unit of trade will
be 1 share, the concepts of round lots and odd-lots remain for the
purposes of quoting as explained in more detail below.
---------------------------------------------------------------------------

    \11\ See Proposed NYSE Amex Equities Rule 55 and 56. In
addition, proposed NYSE Amex Equities Rule 55 retains the ability of
the Exchange to designate securities to be quoted in less than 100
shares. Investors may subscribe to an NYSE market data product to
obtain information on the securities designated to quote in less
than 100 share increments. Securities so designated pursuant to NYSE
Amex Equities Rule 65 are to ``be dealt in as provided in NYSE Amex
Equities Rules 64.'' Because the other provisions of NYSE Amex
Equities Rule 65 no longer apply when odd-lots are incorporated into
the round lot market, the Exchange further proposes to incorporate
this concept into the provisions of proposed NYSE Amex Equities Rule
55 and delete the provision of NYSE Amex Equities Rule 65 in its
entirety. The Exchange further proposes to amend Supplementary
Material subparagraph (2)(c) of NYSE Amex Equities Rule 115A
(``Orders at Opening or in Unusual Situations'') to change the term
``unit of trading'' to one round lot.
---------------------------------------------------------------------------

    There will no longer be a separate execution pricing structure for
odd-lot interest and the odd-lot portion of PRL interest. Further,
because the trading of odd-lot interest and the odd-lot portion of PRL
interest is being incorporated in the round lot market the Exchange no
longer needs the DMM to act in the capacity of odd-lot dealer. The DMM
will no longer be the contra party to all odd-lot executions except for
odd-lot size quantity that pursuant to Exchange rules is to be executed
in the opening, re-opening and closing transactions that remain
unpaired.\12\ The Exchange therefore seeks to rescind rules that govern
odd-lot dealers and the distinct pricing for odd-lot interest and the
odd-lot portion of PRL interest. Specifically, the Exchange proposes to
rescind the provisions of NYSE Amex Equities Rules 99 (``Round-Lot
Transactions of Odd-Lot Dealer and Broker'') 99 Former (``Round-Lot
Transactions of Odd-Lot Dealer and Broker''), 100 (Round-Lot
Transactions of Odd-Lot Dealer or Broker Affecting Odd-Lot Orders''),
101(``Registration of Odd-lot Dealers and Brokers'') and 124 (``Odd-Lot
Orders'') and retain the rule numbers as reserved. Similarly, the
Exchange proposes to delete all references to Odd-Lot Dealers in NYSE
Amex Equities Rules 94 (``Designated Market Markers or Odd-Lot Dealers
Interest in Joint Accounts'') and 108 (``Limitation on Members' Bids
and Offers'').
---------------------------------------------------------------------------

    \12\ See Proposed NYSE Amex Equities Rule 104(e).
---------------------------------------------------------------------------

    Odd-lot interest and the odd-lot portion of PRL interest will be
generally subject to all the provisions of Exchange rules that
heretofore applied only to interest executed in the round lot market
except as described herein. The Exchange therefore seeks to delete
current subparagraph (e) of NYSE Amex Equities Rule 13 under the Auto
Ex Order and make conforming changes to the lettering. The inclusion of
odd-lot interest and the odd-lot portion of PRL interest in the round
lot market will obviate the need for a specific provision authorizing
automatic execution for the round lot portion of a PRL order. In
addition, the Exchange proposes to delete the provisions of current
subparagraph (f) of NYSE Amex Equities Rule 14, which restricts non-
regular way settlement instructions solely to round lot and PRL
interest. Floor brokers will now be permitted to accept orders
containing non-regular way settlement instructions in odd-lot
quantities because they will be able to represent them in the round lot
market. Current subparagraph (g) of NYSE Amex Equities Rule 14 will be
amended to become new subparagraph (f) of proposed NYSE Amex Equities
Rule 14.
Order Handling, Execution, Allocation
    In order to incorporate odd-lot interest and the odd-lot portion of
PRL interest into the round lot market, the Exchange must amend rules
governing order handling, execution and allocation to reflect that odd-
lot quantities will not be displayed as the Exchange quotation and odd-
lot executions are not published to the Consolidated Tape.
    The Exchange proposes to amend NYSE Amex Rule 61 to delete: (i) The
requirement that odd-lot orders be executed via the Odd-lot System; and
(ii) references to rescinded rule text. The Exchange further proposes
to re-order the remaining substantive provisions of

the rule and update the rule text with currently recognized references,
for example wordy descriptions of PRL will be replaced with part of
round lot or PRL.
    Pursuant to the instant proposal Display Book will aggregate all
interest at each limit price, including odd-lot interest and the odd-
lot portion of PRL interest. Interest will be quoted if it is equal to
or greater than a round lot when the price point becomes the Exchange
best bid and offer (``Exchange BBO''). For example, Table 1 below
depicts the Exchange BBO as 200 shares bid at $20.05 and 200 shares
offered at $20.10. The quoted offer includes two non-reserve orders for
100 shares each; however, the quoted bid includes one non-reserve order
to buy for 100 shares and two odd-lot non-reserve orders for 50 shares
each. The 50 shares at the price point of $20.07 are not quoted because
it is less than a round lot.

                                                                         Table 1
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                Displayable
                Displayable interest available                   Quoted interest      Bid price        Offer price     Quoted interest      interest
                                                                                available
--------------------------------------------------------------------------------------------------------------------------------------------------------
0.............................................................                 0                 0            $20.10               200          100, 100
50............................................................                 0            $20.07                 0                 0                 0
50, 50, 100...................................................               200            $20.05                 0                 0                 0
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Display Book will continue publishing the Exchange BBO which may
now include aggregated odd-lot interest and the odd-lot portion of PRL
interest. The Exchange therefore proposes to amend NYSE Amex Equities
Rule 60 to include a fuller citation to Regulation National Market
System (``Reg. NMS'') and clarify that a bid or offer may also be the
aggregation of odd-lot interest and the odd-lot portion of PRL
interest, the sum of which is equal to or greater than a round lot.\13\
The Exchange BBO will still be quoted in round lots.\14\ The Exchange
proposes to include odd-lot interest and the odd-lot portion of PRL
interest in the Exchange BBO only when such odd-lot interest may be
aggregated with other interest at the price point resulting in a sum
that would be equal to or greater than a round lot.\15\
---------------------------------------------------------------------------

    \13\ NYSE Amex Equities Rule 60 currently provides that the
terms ``bid'' or ``offer'' shall have the meaning given to them in
Sec.  242.600(b) (``Rule 602'') of Regulation NMS. Reg. NMS, Rule
600 provides that: Bid or offer means the bid price or the offer
price communicated by a member of a national securities exchange or
member of a national securities association to any broker or dealer,
or to any customer, at which it is willing to buy or sell one or
more round lots of an NMS security, as either principal or agent,
but shall not include indications of interest.
    The Exchange proposes to amend the citation in NYSE Amex
Equities Rule 60 to: Section 242.602 (``Rule 602'') of Regulation
National Market System (``Reg. NMS''), 17 CFR part 242.
    \14\ See Consolidated Tape Plan (``CTA Plan'') Second
Restatement of Plan Submitted to The Securities and Exchange
Commission Pursuant to Rule 11Aa3-1 Under the Securities Exchange
Act of 1934 at page 26 section VI.(d)(iv). See also Securities
Exchange Act Release Nos. 10787 (May 10, 1974), 39 FR 17799 (order
approving CTA Plan). The most recent restatement of the CTA Plan was
in 1995. The CTA Plan, pursuant to which markets collect and
disseminate last sale price information for non- NASDAQ listed
securities, is a ``transaction reporting plan'' under Rule 601 under
the Act, 17 CFR 242.601, and a ``national market system plan'' under
Rule 608 under the Act, 17 CFR 242.608. See Securities Exchange Act
Release No. 51808 (June 9, 2005), 70 FR 37496 (June 29, 2005).
    \15\ See Proposed NYSE Amex Equities Rule 72(a).
---------------------------------------------------------------------------

    Because odd-lot interest and the odd-lot portion of PRL interest
will be eligible for inclusion in the Exchange BBO such interest will
be considered ``displayable'' interest for the purposes of execution
and allocation pursuant to the provisions of NYSE Amex Equities Rule
72. Consistent with the current operation of NYSE Amex Equities Rule
72, interest will not be considered displayable when such interest is
affirmatively designated as excluded interest (e.g. reserve interest).
    In addition, consistent with the current logic of priority and
parity, incoming single odd-lot interest will never be eligible to be
the Priority Interest because it can never be the only interest quoted
at the price point.\16\ For example, Table 2 and 3 below depict the
Exchange BBO in XYZ security. Initially, the Exchange BBO is 200 shares
bid at $20.05 and 100 shares offered at $20.11. The quoted offer
includes two non-reserve orders for 50 shares each and the quoted bid
includes one non-reserve order to buy for 150 shares and two odd-lot
non-reserve orders for 50 shares each.\17\ There is no Priority
Interest in the Exchange BBO because none of the orders were the only
independently displayable interest quoted at the price point when it
became the Exchange BBO. Subsequently an order to sell 200 shares at
$20.10 is received. Table 3 shows the Exchange BBO is updated to
reflect 200 shares offered at $20.10 and 200 shares bid at $20.05. The
200 share order at $20.10 is Priority Interest because it was the only
independently displayable interest capable of being quoted at the price
point when the price point became the Exchange BBO.
---------------------------------------------------------------------------

    \16\ See supra, note 11.
    \17\ It is also important to note that in this example although
the total number of shares bid on the Exchange at the Exchange best
bid is 250 shares the quoted bid is 200 shares consistent with the
provisions of proposed NYSE Amex Equities Rule 55. See also supra,
note 11.

                                                                         Table 2
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                Displayable
                Displayable interest available                   Quoted interest      Bid price        Offer price     Quoted interest      interest
                                                                                available
--------------------------------------------------------------------------------------------------------------------------------------------------------
0.............................................................                 0                 0            $20.11               100            50, 50
0.............................................................                 0                 0            $20.10                 0                 0
0.............................................................                 0            $20.09            $20.09                 0                 0
0.............................................................                 0            $20.08                 0                 0                 0
10, 20, 30....................................................                 0            $20.07                 0                 0                 0
10, 10, 25, 50................................................                 0            $20.06                 0                 0                 0
50, 50, 150...................................................               200            $20.05                 0                 0                 0
--------------------------------------------------------------------------------------------------------------------------------------------------------

                                                                         Table 3
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                Displayable
                Displayable interest available                   Quoted interest      Bid price        Offer price     Quoted interest      interest
                                                                                available
--------------------------------------------------------------------------------------------------------------------------------------------------------
0.............................................................                 0                 0            $20.11               100            50, 50
0.............................................................                 0                 0            $20.10               200               200
0.............................................................                 0            $20.09            $20.09                 0                 0
0.............................................................                 0            $20.08                 0                 0                 0
10, 20, 30....................................................                 0            $20.07                 0                 0                 0
10, 10, 25, 50................................................                 0            $20.06                 0                 0                 0
50, 50, 150...................................................               200            $20.05                 0                 0                 0
--------------------------------------------------------------------------------------------------------------------------------------------------------

    For the same reason, single odd-lot interest at a price point may
not prevent single displayable round lot or PRL interest from
establishing itself as Priority Interest. When single round lot or PRL
interest joins odd-lot interest at a price point and the sum of the
odd-lot interest is not equal to a round lot, the single round lot or
PRL that is published as the Exchange BBO is considered the setting
interest and has established priority at that price point.\18\ For
example, Table 4 and 5 below depict the Exchange BBO in XYZ security.
Initially, the Exchange BBO is 200 shares bid at $20.05 and 100 shares
offered at $20.11. The quoted offer includes two non-reserve orders for
50 shares each and the quoted bid includes one non-reserve order to buy
for 100 shares and two odd-lot non-reserve orders for 50 shares each.
There is no Priority Interest in the Exchange BBO because none of the
displayable orders were the only independently displayable interest
quoted at the price point when the price point became the Exchange BBO.
Subsequently an order to sell 150 shares at $20.10 is received. Table 5
shows the Exchange BBO is updated to reflect 200 shares offered at
$20.10 and 200 shares bid at $20.05. The 150 share order at $20.10 is
entitled to be Priority Interest because it was the only independently
displayable interest capable of being quoted at the price point when it
became the Exchange BBO.
---------------------------------------------------------------------------

    \18\ See Proposed NYSE Amex Equities Rule 72 (a)(iv).

                                                                         Table 4
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                Displayable
                Displayable interest available                   Quoted interest      Bid price        Offer price     Quoted interest      interest
                                                                                available
--------------------------------------------------------------------------------------------------------------------------------------------------------
0.............................................................                 0  ................            $20.11               100            50, 50
0.............................................................                 0  ................            $20.10                 0                50
0.............................................................                 0            $20.09            $20.09                 0                 0
0.............................................................                 0            $20.08                 0                 0                 0
10, 20, 30....................................................                 0            $20.07                 0                 0                 0
10, 10, 25, 50................................................                 0            $20.06                 0                 0                 0
50, 50, 100...................................................               200            $20.05                 0                 0                 0
--------------------------------------------------------------------------------------------------------------------------------------------------------

                                                                         Table 5
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                Displayable
                Displayable interest available                   Quoted interest      Bid price        Offer price     Quoted interest      interest
                                                                                available
--------------------------------------------------------------------------------------------------------------------------------------------------------
0.............................................................                 0                 0            $20.11               100            50, 50
0.............................................................                 0                 0            $20.10               200           50, 150
0.............................................................                 0            $20.09            $20.09                 0                 0
0.............................................................                 0            $20.08                 0                 0                 0
10, 20, 30....................................................                 0            $20.07                 0                 0                 0
10, 10, 25, 50................................................                 0            $20.06                 0                 0                 0
50, 50, 100...................................................               200            $20.05                 0                 0                 0
--------------------------------------------------------------------------------------------------------------------------------------------------------

    PRL interest that is established as Priority Interest, establishes
priority for the full quantity of the PRL interest. For example, a 199
share buy limit order with no designated reserve quantity that is the
only interest available at the price point when it is quoted will
constitute 199 shares of Priority Interest although the Exchange Bid
will only quote 100 shares. Moreover, and consistent with the handling
of Priority Interest of round lot interest, PRL interest will retain
its Priority Interest status even if subsequent executions of the
original interest decrement the quantity of the shares remaining in the
interest to less than a round lot. Priority Interest will only lose its
priority status if it is cancelled, executed in full or routed away for
execution and returned unexecuted.\19\
---------------------------------------------------------------------------

    \19\ See Proposed NYSE Amex Equities Rule 72(b)(iv). Priority of
the setting interest is not retained on any portion of Priority
Interest that routes to an away market and is returned unexecuted
unless, such returned Priority Interest is greater than a round lot
and there is no other interest available at the price point or any
other interest available at the price point is less than a round
lot.
---------------------------------------------------------------------------

    Display Book as the matching engine for the Exchange will be
responsible for the execution of all incoming interest regardless of
the share size consistent with all applicable Exchange rules and
Federal securities laws. All incoming interest will be eligible to be
executed against eligible contra side interest.

    DMM CCS interest will be accessed to fill or partially fill \20\
incoming interest except, that Display Book will not access DMM CCS
interest to provide an execution for an incoming odd-lot order. The
Exchange proposes to amend NYSE Amex Equities Rule 1000 (d)(i) to
clarify that DMM CCS interest will be accessed in reaction to incoming
contra side interest that is equal to or greater than one round lot. As
is the case today, DMM CCS interest must be for a minimum of a round
lot however, a DMM will be allowed to provide interest in PRL
quantities.\21\ For example, today a DMM unit may be willing to provide
150 shares of additional liquidity at the price point. Pursuant to
current NYSE Amex Equities Rule 1000 the DMM unit is only allowed to
provide 100 shares or must go past its risk tolerance to provide 200
shares. Pursuant to the proposal DMM CCS interest may be designated at
the price point in any amount equal to or greater than a round lot,
(i.e. 150 shares in the previous example).
---------------------------------------------------------------------------

    \20\ CCS interest shall be accessed by Exchange systems to
partially fill incoming Regulation NMS-compliant Immediate or Cancel
Order, Exchange Immediate or Cancel Order and any order whose
partial execution will result in a remaining unfilled quantity of
less than one round lot even if such CCS interest is not designated
for partial execution. See proposed NYSE Amex Equities Rule
1000(e)(iii)(A)(4).
    \21\ See Proposed NYSE Amex Equities Rule 1000(d)(ii).
---------------------------------------------------------------------------

    Executions will be printed to the Consolidated Tape in round lots
or PRL quantities. Transactions that result in executions of less than
a round lot will not: (i) Print to the Consolidated Tape; \22\ (ii) be
considered the last sale; and (iii) elect buy minus, sell plus or stop
interest for execution.\23\ The Exchange therefore proposes to amend
NYSE Amex Equities Rule 1004 to clarify that buy minus, sell plus and
stop interest are elected by executions that are reported to the
Consolidated Tape.\24\ Moreover, because liquidity replenishment points
(``LRP'') values are calculated based on the last sale on the Exchange,
NYSE Amex Equities Rule 1000 will be amended to clarify that for
automatic executions, Exchange systems will recalculate LRP values
after executions that are reported to the Consolidated Tape.
---------------------------------------------------------------------------

    \22\ See supra, note 11.
    \23\ See Proposed NYSE Amex Equities Rules 13 and 61.
    \24\ The Exchange further proposes to amend NYSE Amex Equities
Rule 1004 to remove legacy references to Percentage Orders, which
are no longer order types accepted on the Exchange.
---------------------------------------------------------------------------

    Display Book will continue to allocate executed shares in round
lots; however, if the quantity of shares to be allocated to a specific
participant is for a quantity less than a round lot, the Display Book
will allocate to the participant the specific number of shares bid or
offered. The Exchange proposes to amend NYSE Amex Equities Rule
72(c)(viii) to state that shares are allocated in round lots or the
size of the order if less than one round lot.
    Below see specific trading examples demonstrating the execution
logic employing priority parity rules: \25\
---------------------------------------------------------------------------

    \25\ See Proposed NYSE Amex Equities Rules 72(c).

    (A) On each trading day, the allocation wheel for each security
is set to begin with the participant whose interest is entered or
retained first on a time basis. Thereafter, participants are added
to the wheel as their interest joins existing interest at a
particular price point. If a participant cancels his, her or its
interest and then rejoins, that participant joins as the last
position on the wheel at that time.

Parity Example 1

    Assume there is interest of the Book Participant (representing
orders entered by two different public customers), three Floor
brokers and the DMM are bidding at the same price, with no
participant established as Priority Interest. An order to sell is
received by the Exchange. Exchange systems will divide the
allocations among the participants, listed in time order, as
follows:

Public Order 1 100 shares and Public Order 2 100
shares Book Participant
Floor Broker 1 Participant A
DMM Participant B
Floor Broker 2 Participant C
Floor Broker 3 Participant D

    A market order for 300 shares to sell entered in Exchange
systems will allocate 100 shares to the Book Participant (Public
Order 1), Participant A and Participant B above.
Subsequently, another order to sell 300 shares at the same price is
received by Exchange systems. Those shares will be allocated to
Participant C, Participant D, and Book Participant (Public Order
2).
    (B) The allocation wheel will move to the next participant when
an odd-lot allocation completely fills the interest of such
participant.

Parity Example 2

    Assume there is interest of the Book Participant (representing
orders entered by two different public customers), three Floor
brokers and the DMM are bidding at the same price, with no
participant having priority. An order to sell is received by the
Exchange. Exchange systems will divide the allocations among the
participants as follows:

Public Order 1 100 shares and Public Order 2 100
shares Book Participant
Floor Broker 1 Participant A 50 shares
DMM Participant B 50 shares
Floor Broker 2 Participant C 300 shares
Floor Broker 3 Participant D 300 shares

    A market order for 200 shares to sell entered in Exchange
systems will allocate 100 shares to the Book Participant (Public
Order 1), Participant A will receive 50 shares, Participant
B above will receive 50 shares. Subsequently, another order to sell
300 shares at the same price is received by Exchange systems. Those
shares will be allocated to Participant C, Participant D, and Book
Participant (Public Order 2).

Parity Example 3

    Assume there is interest of the Book Participant (representing
orders entered by two different public customers), three Floor
brokers and the DMM are bidding at the same price, with no
participant having priority. An order to sell is received by the
Exchange. Exchange systems will divide the allocations among the
participants as follows:

Public Order 1 100 shares and Public Order 2 100
shares Book Participant
Floor Broker 1 Participant A 50 shares
DMM Participant B 75 shares
Floor Broker 2 Participant C 300 shares
Floor Broker 3 Participant D 300 shares

    A market order for 200 shares to sell entered in Exchange
systems will allocate 100 shares to the Book Participant (Public
Order 1), Participant A will receive 50 shares, Participant
B above will receive 50 shares. Subsequently, another order to sell
300 shares at the same price is received by Exchange systems. The
allocation wheel will start with Participant B. Participant B is
allocated 25 shares, Participant C is allocated 100 shares,
Participant D is allocated 100 shares, and Book Participant (Public
Order 2) is allocated 75 shares. Exchange systems will
retain Book Participant (Public Order 2) as the participant
eligible to receive the next allocation at that price point.
    (C) The allocation wheel will also move to the next participant
where Exchange systems execute remaining displayable odd-lot
interest prior to replenishing the displayable quantity of a
participant.

Parity Example 4

    Assume the available bid interest on the Exchange consists of a
single Book Participant and two Floor brokers listed below in order
of their position on the allocation wheel None of the participants
have priority.

Floor Broker 1 Participant A--200 shares displayed and 4800 shares
reserve
Book Participant Public Order 1 Participant B--500 shares
displayed
Floor Broker 2 Participant C--500 shares displayed

    An order to sell 350 shares is received by the Exchange.
Exchange systems will divide the allocations among the participants
as follows:

Participant A--150 shares
Book Participant--100 shares
Participant C--100 shares

    Each participant receives a round lot allocation. The Allocation
wheel returns to Participant A as the first participant on the wheel
and allocates the remaining 50 shares. The allocation wheel remains
on Participant A. The remaining interest of the three participants
is as follows:

Floor Broker 1 Participant A--50 shares displayed and 4800 shares
reserve
Book Participant Public Order 1 Participant B 400 shares
displayed
Floor Broker 2 Participant C 400 shares displayed

    Prior to the system replenishing the displayed quantity of
Participant A, an order to sell 100 shares is received by Exchange
systems. The system will allocate 50 shares to Participants A and B.
The next allocation at the price point will begin with Participant
B.
Miscellaneous Amendments
    The Exchange proposes to amend the section title for the grouped
NYSE Amex Equities Rules 99-114 to delete: (i) Legacy references to
specialists and registered traders; and (ii) the reference to Odd-lot
Dealers. The amended title will read, ``Designated Market Makers'
(``DMMs'') and Member Organizations' Dealings on the Floor''. The
Exchange also proposes to make conforming amendments to other Exchange
rules that refer to odd-lot systems and dealers, including NYSE Amex
Equities Rules 92, 94, and 104.
    In addition, the Exchange proposes to amend Rule 411 to delete the
requirement that when a person gives, either for his own account, for
various accounts in which he has an actual monetary interest, or for
accounts over which such person is exercising investment discretion,
buy or sell odd-lot orders that aggregate 100 shares or more, such odd-
lot orders must be consolidated into round lots. The Exchange proposes
to delete this requirement as moot now that Exchange systems will
receive odd-lot orders in the same system that handles round lot
orders.
Additional New Systemic Capabilities
    The system changes required to decommission the Odd-lot System will
also enable the Exchange to expand its price fields. Previous
constraints on the number of characters that could be included in a
price field required a ten cent ($.10) minimum price variation for
quoting and order entry in securities priced at or greater than
$100,000. As a result of the new systemic capability to include
additional characters in the price fields, the Exchange proposes to
amend NYSE Amex Equities Rules 62 (``Variations'') to remove the
requirement that $.10 be the minimum variation for securities priced at
or greater than $100,000. Specifically, the Exchange proposes to amend
Supplementary Material .10 of NYSE Amex Equities Rule 62 to state that
the minimum price variation for quoting and entry of interest in
securities priced at or greater than a $1.00 will be a penny
(``$.01'').
    In addition, the incorporation of odd-lot interest and the odd-lot
portion of PRL interest into Display Book will provide Exchange market
data systems access to odd-lot volumes. Market participants will
therefore benefit from additional transparency because the depth of
book information published by the Exchange via its market data systems
will now include those quantities. NYSE Amex OpenBook[supreg] will
publish in shares the total volume of interest available at each price
point.\26\
---------------------------------------------------------------------------

    \26\ NYSE Amex OpenBook provides subscribers a real-time view of
the Exchange's limit-order book for all NYSE-traded securities. NYSE
OpenBook shows the aggregate limit-order volume at every bid and
offer price, thus responding to customer demand for more depth-of-
market data and raising the NYSE Amex market to an even greater
level of transparency.
---------------------------------------------------------------------------

Implementation of Proposed Amendments \27\
---------------------------------------------------------------------------

    \27\ See e-mail from Clare F. Saperstein, Managing Director,
NYSE Regulation, Inc., to Nathan Saunders, Special Counsel, and Gary
Rubin, Attorney, Commission, dated June 14, 2010.
---------------------------------------------------------------------------

    Subject to Commission approval, the Exchange intends to
progressively implement these systemic changes on a security by
security basis as it gains experience with the new technology until it
is operative in all securities traded on the Floor. During the
implementation, the Exchange will identify on its Web site which
securities have been transitioned to the new system. In addition, the
Exchange will provide information to its constituents about any
modifications to the start or end date related to the implementation of
such proposal via its Trader Update Notices that are sent via e-mail to
subscribers and posted on the Exchange Web site.
    2. Statutory basis. The basis under the Act for this proposed rule
change is the requirement under section 6(b)(5) \28\ that an Exchange
have rules that are 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. The instant proposal is in
keeping with these principles in that it removes timing restrictions on
the execution of odd-lot interest and the odd-lot portion of PRL
interest by allowing such interest, if marketable to be immediately and
automatically executed. It further promotes the interaction of such
interest with all other market interest and enables it to be priced in
accordance with supply and demand dynamics.
---------------------------------------------------------------------------

    \28\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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

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

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

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

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

    Within 35 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
    (A) By order approve the proposed rule change, or
    (B) institute proceedings to determine whether the proposed rule
change should be disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Exchange 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-NYSEAmex-2010-53 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-NYSEAmex-2010-53. 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 am and 3 pm. 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-NYSEAmex-2010-53 and should be submitted on or before July 14, 2010.

    Dated: June 16, 2010.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\29\
---------------------------------------------------------------------------

    \29\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-15133 Filed 6-22-10; 8:45 am]
BILLING CODE 8010-01-P