[Federal Register Volume 85, Number 174 (Tuesday, September 8, 2020)]
[Notices]
[Pages 55524-55529]
[FR Doc No: 2020-19718]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-89731; File No. SR-BX-2020-016]

Self-Regulatory Organizations; Nasdaq BX, Inc.; Order Approving
Proposed Rule Change To Amend BX's Opening Process in Connection With a
Technology Migration

September 1, 2020.

I. Introduction

    On July 20, 2020, Nasdaq BX, Inc. (``BX'' or ``Exchange'') filed
with the Securities and Exchange Commission (``Commission''), pursuant
to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to
amend the Exchange's opening process in connection with a technology
migration. The proposed rule change was published for comment in the
Federal Register on July 27, 2020.\3\ The Commission received no
comment letters on the proposed rule change. This order approves the
proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 89356 (July 21,
2020), 85 FR 45243 (``Notice'').
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II. Description of the Proposal

    The Exchange proposes to amend Options 2, Section 4 (Obligations of
Market Makers and Lead Market Makers), Options 3, Section 7 (Types of
Orders and Order and Quote Protocols), Options 3, Section 8 (Opening
and Halt Cross), Options 4A, Section 11 (Trading Sessions), and Options
6B, Section 1 (Exercise of Options Contracts) in connection with a
technology migration to an enhanced Nasdaq, Inc. (``Nasdaq'')
architecture.\4\
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    \4\ The Exchange represents that in connection with the
technology migration, BX is adopting certain opening functionality
that is similar to the process used by Nasdaq Phlx LLC (``Phlx'') at
Options 3, Section 8 (Options Opening Process). See Notice, supra
note 3, 85 FR at 45243.
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A. Proposed Opening Process 5
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    \5\ In connection with the new opening process, the Exchange
proposes to adopt a new ``Definitions'' section in proposed BX
Options 3, Section 8(a), similar to Phlx Options 3, Section 8(a), to
define several terms that are used throughout the opening rule.
Proposed BX Options 3, Section 8 will define: ``Away Best Bid or
Offer'' or ``ABBO,'' ``imbalance,'' ``market for the underlying
security,'' ``Opening Price,'' ``Opening Process,'' ``Potential
Opening Price,'' ``Pre-Market BBO,'' ``Valid Width National Best Bid
or Offer'' or ``Valid Width NBBO,'' ``Valid Width Quote,'' and
``Zero Bid Market.'' For definitions of these terms, see Notice,
supra note 3, 85 FR at 45244-45.
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    The Exchange proposes to delete the entirety of current BX Options
3, Section 8 and replace the current Exchange opening process with an
opening process described in Phlx Options 3, Section 8,\6\ while
retaining certain elements of its current process and making conforming
changes to reflect particularlities to the BX market.\7\
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    \6\ The Exchange proposes to amend the title of Options 3,
Section 8 from ``Opening and Halt Cross'' to ``Options Opening
Process'' to conform the title to Phlx's Rule at Options 3, Section
8, ``Options Opening Process.'' The Exchange also proposes to amend
the title of Options 3, Section 8, within Options 4A, Section 11,
Trading Session, and Options 6B, Section 1, Exercise of Options
Contracts, to conform the title to ``Options Opening Process.''
    \7\ For example, unlike the Phlx opening process, BX does not:
(1) Require its Lead Market Makers to quote during the opening; (2)
require a Valid Width Quote/Quality Opening Market to trigger the
opening process and instead relies on a Valid Width NBBO designed to
similarly ensure the price at which the Exchange opens reflects
current market conditions; (3) have a trading floor and related
opening rules; or (4) allow All-or-None Orders to rest on the order
book. See Notice, supra note 3.
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1. Opening Sweeps
    The Exchange proposes to define a new order type, ``Opening
Sweep,'' for the new opening process.\8\ A Market Maker assigned in a
particular option may only submit an Opening Sweep if, at the time of
entry, that Market Maker has already submitted and maintained a Valid
Width Quote.\9\ Opening Sweeps may be entered at any price with a
minimum price variation applicable to the affected series, on either
side of the market, at single or multiple price level(s), and may be
cancelled and re-entered.\10\ A single Market Maker may enter multiple
Opening Sweeps, with each Opening Sweep at a different price level.\11\
If a Market Maker submits multiple Opening Sweeps, the system will
consider only the most recent Opening Sweep at each price level
submitted by such Market Maker in determining the Opening Price
(described below).\12\ Unexecuted Opening Sweeps will be cancelled once
the affected series is open.\13\
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    \8\ The Exchange proposes to define an ``Opening Sweep'' as a
one-sided order entered by a Market Maker through SQF for execution
against eligible interest in the system during the Opening Process.
The Opening Sweep is not subject to any protections listed in
Options 3, Section 15, except for Automated Quotation Adjustments.
The Opening Sweep will only participate in the Opening Process
pursuant to Options 3, Section 8 and will be cancelled upon the open
if not executed. See proposed BX Options 3, Section 7(a)(9). In
connection with the new definition of Opening Sweep, the Exchange
proposes to remove a similar order type described as ``On the Open
Order'' in current BX Options 3, Section 7(a)(9).
    \9\ Proposed BX Options 3, Section 8(b)(1)(A). All Opening
Sweeps in the affected series entered by a Market Maker will be
cancelled immediately if that Market Maker fails to maintain a
continuous quote with a Valid Width Quote in the affected series.
See proposed BX Options 3, Section 8(b)(1)(A).
    \10\ See proposed BX Options 3, Section 8(b)(1)(B).
    \11\ See id.
    \12\ See id. The Exchange proposes to define ``Opening Price''
by cross-referencing proposed BX Options 3, Section 8(i) and (k).
See proposed BX Options 3, Section 8(a)(4).
    \13\ See proposed BX Options 3, Section 8(b)(1)(B).
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2. Opening Only Orders
    BX currently permits orders marked with a ``Time In Force'' or
``TIF'' of ``On the Open Order'' or ``OPG'' to be utilized to specify
orders for submission into the Opening Cross.\14\ This TIF of ``OPG''
means for orders so designated, that if after entry into the system,
the order is not fully executed in its entirety during the Opening
Cross, the order, or any unexecuted portion of such order, will be
cancelled back to the entering participant.\15\ BX proposes to replace
the ``On the Open Order'' \16\ TIF with an ``Opening Only'' or ``OPG''
TIF, which can only be executed in the Opening Process pursuant to
Options 3, Section 8.\17\ This order type is not subject to any
protections listed in Options 3, Section 15.\18\ Any portion of the
order that is not executed during the Opening Process is cancelled.\19\
OPG orders also may not route.\20\
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    \14\ See current BX Options 3, Section 7(b)(1).
    \15\ See id.
    \16\ See id.
    \17\ See proposed BX Options 3, Section 7(b).
    \18\ See id.
    \19\ See id.
    \20\ See id.
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3. Interest Included in the Opening Process
    The first part of the Opening Process determines what constitutes
eligible interest. Proposed BX Options 3, Section 8(b) explains the
eligible interest that will be accepted during the Opening Process,\21\
which includes Valid Width Quotes,\22\ Opening

Sweeps,\23\ and orders. Quotes, other than Valid Width Quotes, will not
be included in the Opening Process. The system will allocate interest
pursuant to Options 3, Section 10.\24\
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    \21\ The Exchange proposes to define ``Opening Process'' by
cross-referencing proposed BX Options 3, Section 8(d). See proposed
BX Options 3, Section 8(a)(5). The proposed ``Opening Process'' term
is replacing the current term, ``BX Opening Cross.''
    \22\ The Exchange proposes to define ``Valid Width Quotes'' as a
two-sided electronic quotation, submitted by a Market Maker, quoted
with a difference not to exceed $5 between the bid and offer
regardless of the price of the bid. However, respecting in-the-money
series where the market for the underlying security is wider than
$5, the bid/ask differential may be as wide as the quotation for the
underlying security on the primary market, or its decimal equivalent
rounded down to the nearest minimum increment. The Exchange may
establish differences other than the above for one or more series or
classes of options See proposed BX Options 3, Section 8(a)(9).
    \23\ See proposed BX Options 3, Section 7(a)(9).
    \24\ See proposed BX Options 3, Section 8(b)(2).
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    Market Maker Valid Width Quotes and Opening Sweeps received
starting at 9:25 a.m. Eastern Time are included in the Opening
Process.\25\ Orders entered at any time before an option series opens
are included in the Opening Process.\26\
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    \25\ See proposed BX Options 3, Section 8(d).
    \26\ See id.
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4. Opening Process and Reopening After a Trading Halt
    Proposed BX Options 3, Section 8(d)(1) describes when the Opening
Process may begin with specific time-related triggers. The proposed
rule provides that the Opening Process for an option series will be
conducted pursuant to proposed Options 3, Section 8(f) through (k) on
or after 9:30 a.m. Eastern Time, when the system has received the
opening trade or quote on the market for the underlying security \27\
in the case of equity options or in the case of index options. This
requirement is intended to tie the Opening Process to receipt of
liquidity.\28\
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    \27\ The Exchange proposes to define ``market for the underlying
security'' as either the primary listing market or an alternative
market designated by the primary market. In the event that the
primary market is unable to open and an alternative market is not
designated by the primary market and/or the alternative market
designated by the primary market does not open, the Exchange may
utilize a non-primary market to open all underlying securities from
the primary market. The Exchange will select the non-primary market
with the most liquidity in the aggregate for all underlying
securities that trade on the primary market for the previous two
calendar months, excluding the primary and alternative markets. See
proposed BX Options 3, Section 8(a)(3).
    \28\ See Notice, supra note 3, 85 FR at 45247.
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    For all options, the underlying security, including indexes, must
be open on the market for the underlying security for a certain time
period, as determined by the Exchange, for the Opening Process to
commence.\29\ The Opening Process will stop and an option series will
not open if the ABBO \30\ becomes crossed.\31\ Once this condition no
longer exists, the Opening Process in the affected option series will
start again pursuant proposed BX Options 3, Section 8(f)-(k).\32\
Furthermore, the Opening Process will stop and an options series will
not open if a Valid Width NBBO \33\ is no longer present, pursuant to
Options 3, Section 8(i)(2).\34\ Once this condition no longer exists,
the Opening Process in the affected options series will start again,
pursuant to Options 3, Section 8(j) and (k) below. The Exchange would
wait for the ABBO to become uncrossed before initiating the Opening
Process to ensure that there is stability in the marketplace as the
Exchange determines the Opening Price, or for a Valid Width Quote to be
submitted.\35\
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    \29\ See proposed BX Options 3, Section 8(d)(2). Proposed BX
Options 3, Section 8(d)(2) stipulates that this time period will be
no less than 100 milliseconds and no more than 5 seconds. The
Exchange represents that it will set the timer initially at 100
milliseconds and will issue a notice to provide the initial setting
and will thereafter issue a notice if it were to change the timing.
See Notice, supra note 3, 85 FR at 45247, n.30. If the Exchange were
to select a time not between 100 milliseconds and 5 seconds, it will
be required to file a rule proposal with the Commission. See id.
    \30\ The Exchange proposes to define ``Away Best Bid or Offer''
or ``ABBO'' as the displayed National Best Bid or Offer not included
in the Exchange's Best Bid or Offer. See proposed BX Options 3,
Section 8(a)(1).
    \31\ See proposed BX Options 3, Section 8(d)(3).
    \32\ See id.
    \33\ The Exchange proposes to define ``Valid Width NBBO'' as the
combination of all away market quotes and Valid Width Quotes
received over the SQF. The Valid Width NBBO will be configurable by
the underlying security, and tables with valid width differentials,
which will be posted by the Exchange on its website. Away markets
that are crossed will void all Valid Width NBBO calculations. If any
Market Maker quotes on the Exchange are crossed internally, then all
Exchange quotes will be excluded from the Valid Width NBBO
calculation. See proposed BX Options 3, Section 8(a)(8).
    \34\ Today, BX would not open with a trade unless there is a
Valid Width NBBO present. The Exchange represents that this would
remain the case with the proposed Opening Process. See Notice, supra
note 3, 85 FR at 45259.
    \35\ See Notice, supra note 3, 85 FR at 45247.
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    Proposed Options 3, Section 8(e) states that the procedure
described in the proposed Options 3, Section 8 will be used to reopen
an options series after a trading halt. If there is a trading halt or
pause in the underlying security, the Opening Process will recommence
irrespective of the specific times listed in proposed Options 3,
Section 8(d).
5. Opening With a BBO (No Trade)
    Under proposed BX Options 3, Section 8(f), the Exchange will first
see if the option series will open for trading with a best bid or offer
(``BBO''). If there are no opening quotes or orders that lock or cross
each other, and no routable orders locking or crossing the ABBO, the
system will open with an opening quote by disseminating the Exchange's
best bid and offer among quotes and orders (``BBO'') that exist in the
system at that time, if any of the following conditions are satisfied:
(1) A Valid Width NBBO is present; (2) a certain number of other
options exchanges (as determined by the Exchange) have disseminated a
firm quote on OPRA; \36\ or (3) a certain period of time (as determined
by the Exchange) has elapsed.\37\
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    \36\ The Exchange states that it will require at least two other
options exchanges to open, which is the existing practice on the
Exchange. See Notice, supra note 3, 85 FR at 45258, n.33.
    \37\ The Exchange states that it will require 15 minutes to pass
with respect to this setting, which is the existing practice on the
Exchange. See Notice, supra note 3, 85 FR at 45258, n.34.
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6. Further Opening Process
    If, as proposed, an opening does not occur pursuant to proposed
Options 3, Section 8(e) (Reopening After a Trading Halt) and there are
opening Valid Width Quotes, or orders, that lock or cross each other,
the system will calculate the Pre-Market BBO.\38\ The Exchange states
that it calculates a Pre-Market BBO in order for the Exchange to open
with a trade pursuant to proposed Options 3, Section 8(i), to ensure
that the Pre-Market BBO is a Valid Width NBBO, which is required to
open the market.\39\ The Exchange also states that it does not
disseminate a Pre-Market BBO, rather, the Exchange disseminates
imbalance messages to notify Participants of available trading
opportunities on BX during the Opening Process.\40\
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    \38\ See proposed BX Options 3, Section 8(g). The Exchange
proposes to define ``Pre-Market BBO'' as the highest bid and the
lowest offer among Valid Width Quotes. See proposed BX Options 3,
Section 8(a)(7).
    \39\ See Notice, supra note 3, 85 FR at 45248.
    \40\ See id.
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7. Opening with a Trade
    If there are Valid Width Quotes or orders that lock or cross each
other, the system will try to open with a trade. Options 3, Section
8(i) provides that the Exchange will open the option series with a
trade of Exchange interest only at the Opening Price, if any of the
following conditions occur: (1) The Potential Opening Price \41\
(described below) is at or within the best of the Pre-Market BBO and
the ABBO, which is also a Valid Width NBBO; (2) the Potential Opening
Price is at or within the non-zero bid ABBO, which is also a Valid
Width NBBO, if the Pre-Market BBO is crossed; or (3) where there is no
ABBO, the Potential Opening Price is at or within the Pre-Market BBO,
which is also a Valid Width NBBO.\42\
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    \41\ The Exchange proposes to define ``Potential Opening Price''
by cross-referencing proposed BX Options 3, Section 8(h). See
proposed BX Options 3, Section 8(a)(6).
    \42\ See proposed BX Options 3, Section 8(i)(1).
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    To undertake the above described process, the Exchange will
calculate the Potential Opening Price by taking into

consideration all Valid Width Quotes and orders (including Opening
Sweeps) for the option series and identify the price at which the
maximum number of contracts can trade (``maximum quantity
criterion'').\43\
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    \43\ See proposed BX Options 3, Section 8(h).
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    Under proposed Options 3, Section 8(h)(1), when two or more
Potential Opening Prices would satisfy the maximum quantity criterion
and leave no contracts unexecuted, the system will take the highest and
lowest of those prices and takes the mid-point. If such mid-point
cannot be expressed as a permitted minimum price variation, the mid-
point will be rounded to the minimum price variation that is closest to
the closing price for the affected series from the immediately prior
trading session.\44\ If there is no closing price from the immediately
prior trading session, the system will round up to the minimum price
variation to determine the Opening Price.\45\
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    \44\ See proposed BX Options 3, Section 8(h)(1).
    \45\ See id.
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    If two or more Potential Opening Prices for the affected series
would satisfy the maximum quantity criterion and leave contracts
unexecuted, the Opening Price will be either the lowest executable bid
or highest executable offer of the largest sized side.\46\ Furthermore,
the Potential Opening Price calculation will be bounded by the better
away market price that may not be satisfied with the Exchange routable
interest.\47\ According to the Exchange, this would ensure that the
price is a reasonable one by identifying the quality of that price; if
a well-defined, fair price can be found within these boundaries, the
option series can open at that price without going through a further
price discovery mechanism.\48\
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    \46\ See proposed BX Options 3, Section 8(h)(2).
    \47\ See id.
    \48\ See Notice, supra note 3, 85 FR at 45249.
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    Proposed BX Options 3, Section 8(i)(2), provides that if there is
more than one Potential Opening Price, which meets the conditions set
forth in proposed BX Options 3, Section 8(i)(1)(A), (B) or (C), where
(A) no contracts would be left unexecuted and (B) any value used for
the mid-point calculation (which is described in proposed BX Options 3,
Section 8(g)) would cross either: (i) The Pre-Market BBO or (ii) the
ABBO, then, for purposes of calculating the midpoint, the Exchange will
use the better of the Pre-Market BBO or ABBO as a boundary price and
will open the option series for trading with an execution at the
resulting Potential Opening Price. If these aforementioned conditions
are not met, but a Valid Width NBBO is present, an Opening Quote Range
(``OQR'') is calculated as described in proposed BX Options 3, Section
8(j) and the price discovery mechanism (``PDM''), described in proposed
BX Options 3, Section 8(k), will commence.
8. Price Discovery Mechanism
    If the Exchange has not opened with a BBO or trade pursuant to
proposed Options 3, Section 8(f) or (i), the Exchange will conduct a
PDM pursuant to proposed Options 3, Section 8(j) to determine the
Opening Price. According to the Exchange, the purpose of the PDM is to
satisfy the maximum number of contracts possible by applying wider
price boundaries and seeking additional liquidity.\49\
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    \49\ See Notice, supra note 3, 85 FR at 45251.
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    Before conducting a PDM, however, the Exchange will calculate the
OQR under proposed Options 3, Section 8(j). The OQR, which is used
during PDM, is an additional boundary beyond the boundaries described
in proposed BX Options 3, Section 8(h) and (i), designed to limit the
Opening Price to a reasonable price and reduce the potential for
erroneous trades during the Opening Process.\50\ The OQR is constrained
by the least aggressive limit prices within the broader limits of
OQR.\51\ The least aggressive buy order or Valid Width Quote bid and
least aggressive sell order or Valid Width Quote offer within the OQR
will further bound the OQR.\52\
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    \50\ See Notice, supra note 3, 85 FR at 45250.
    \51\ See proposed BX Options 3, Section 8(j).
    \52\ See id.
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    To determine the minimum value for the OQR, an amount, as defined
in a table to be determined by the Exchange, will be subtracted from
the highest quote bid among Valid Width Quotes on the Exchange and on
the away market(s), if any, except as provided in proposed BX Options
3, Section 8(j) paragraphs (3) and (4).\53\ To determine the maximum
value for the OQR, an amount, as defined in a table to be determined by
the Exchange, will be added to the lowest quote offer among Valid Width
Quotes on the Exchange and on the away market(s), if any, except as
provided in proposed BX Options 3, Section 8(j) paragraphs (3) and
(4).\54\ If one or more away markets are collectively disseminating a
BBO that is not crossed, however, and there are Valid Width Quotes on
the Exchange that are executable against each other or that are
executable against the ABBO, then the minimum value of the OQR will be
the highest away bid and the maximum value will be the lowest away
offer.\55\
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    \53\ See proposed Options 3, Section 8(j)(1).
    \54\ See proposed BX Options 3, Section 8(j)(2).
    \55\ See proposed BX Options 3, Section 8(j)(3). Proposed BX
Options 3, Section 8(j)(3)(A) further notes that the Opening Process
will stop and an option series will not open if the ABBO becomes
crossed, pursuant to proposed BX Options 3, Section 8(d)(3).
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    The Exchange will use the OQR to help calculate the Opening Price.
For example, if there is more than one Potential Opening Price
possible, where no contracts would be left unexecuted, any price used
for the mid-point calculation (which is described in proposed BX
Options 3, Section 8(h)(3)), that is outside of the OQR, will be
restricted to the OQR price on that side of the market for the purposes
of the mid-point calculation.\56\
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    \56\ See proposed BX Options 3, Section 8(j)(4).
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    During PDM, the Exchange will take into consideration the away
market prices in calculating the Potential Opening Price. For example,
if there is more than one Potential Opening Price possible, where no
contracts would be left unexecuted, pursuant to proposed BX Options 3,
Section 8(h)(3), when contracts will be routed, the system will use the
away market price as the Potential Opening Price.\57\ Moreover,
proposed Options 3, Section 8(h)(6) provides that if the Exchange
determines that non-routable interest can execute the maximum number of
Exchange contracts against Exchange interest, after routable interest
has been determined by the system to satisfy the away market, then the
Potential Opening Price is the price at which the maximum number of
contracts can execute, excluding the interest which will be routed to
an away market, which may be executed on the Exchange as described in
proposed BX Options 3, Section 8(h). The system will route all routable
interest pursuant to Options 3, Section 10(a)(1).\58\
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    \57\ See proposed BX Options 3, Section 8(j)(5).
    \58\ In contrast, Phlx routes Public Customer and Professional
orders, while BX will route orders for all market participants. See
Notice, supra note 3, 85 FR at 45251, n.46.
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    After the OQR is calculated, the system will broadcast an Imbalance
Message for the affected series \59\ to attract additional liquidity
and begin an ``Imbalance Timer,'' not to exceed three seconds to notify
Participants of available interest that may be crossed

during the Opening Process.\60\ The Imbalance Timer will be for the
same number of seconds for all options traded on the Exchange, and each
Imbalance Message will be subject to an Imbalance Timer.\61\ The
Exchange may have up to four Imbalance Messages which each run its own
Imbalance Timer pursuant to the PDM process.\62\
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    \59\ Imbalance Message includes the symbol, side of the
imbalance, size of matched contracts, size of the imbalance, and
Potential Opening Price bounded by the Pre-Market BBO. See proposed
BX Options 3, Section 8(k)(1). In connection with the proposed
handling of imbalance, the Exchange proposes to eliminate the term
``Order Imbalance Indicator'' at current BX Options 3, Section
8(a)(2).
    \60\ See proposed BX Options 3, Section 8(k)(1). The Imbalance
Timer will initially be set 200 milliseconds. See Notice, supra note
3, 85 FR at 45252.
    \61\ See proposed BX Options 3, Section 8(k)(1).
    \62\ See Notice, supra note 3, 85 FR at 45260. An Imbalance
Message will be disseminated showing a ``0'' volume and a $0.00
price if: (i) No executions are possible but routable interest is
priced at or through the ABBO; or (ii) internal quotes are crossing
each other. Where the Potential Opening Price is through the ABBO,
an imbalance message will display the side of interest priced
through the ABBO. See proposed BX Options 3, Section 8(k)(1)(A).
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    Proposed BX Options 3, Section 8(k)(2) states that any new interest
received by the system will update the Potential Opening Price. If
during or at the end of the Imbalance Timer, the Opening Price is at or
within the OQR, the Imbalance Timer will end and the system will open
with a trade at the Opening Price if the executions consist of Exchange
interest only without trading through the ABBO and without trading
through the limit price(s) of interest within the OQR, which is unable
to be fully executed at the Opening Price. If no new interest comes in
during the Imbalance Timer and the Potential Opening Price is at or
within the OQR and does not trade through the ABBO, the Exchange will
open with a trade at the end of the Imbalance Timer at the Potential
Opening Price.
    If the option series has not opened pursuant to proposed BX Options
3, Section 8(k)(2) described above, the system will concurrently: (i)
Send a second Imbalance Message with a Potential Opening Price that is
bounded by the OQR (and would not trade through the limit price(s) of
interest within the OQR which is unable to be fully executed at the
Opening Price) and includes away market volume in the size of the
imbalance to participants; and (ii) initiate a Route Timer, not to
exceed one second.\63\ As proposed, the Route Timer will operate as a
pause before an order is routed to an away market.\64\ The Exchange
states that the Route Timer is intended to give participants an
opportunity to respond to an Imbalance Message before any opening
interest is routed to away markets and thereby maximize trading on the
Exchange.\65\ If during the Route Timer, interest is received by the
system which would allow the Opening Price to be within the OQR without
trading through away markets and without trading through the limit
price(s) of interest within the OQR, which is unable to be fully
executed at the Opening Price, the system will open with trades, and
the Route Timer will simultaneously end.\66\ The system will monitor
quotes received during the Route Timer and make ongoing corresponding
changes to the permitted OQR and Potential Opening Price to reflect
them.\67\
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    \63\ See proposed BX Options 3, Section 8(k)(3)(A)-(B).
    \64\ See proposed BX Options 3, Section 8(k)(3)(B).
    \65\ See Notice, supra note 3, 85 FR at 45253.
    \66\ See proposed BX Options 3, Section 8(k)(3)(B).
    \67\ See id.
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    Proposed BX Options 3, Section 8(k)(3)(C) provides that, if no
trade occurs pursuant to proposed BX Options 3, Section 8(k)(3)(B),
when the Route Timer expires, and if the Potential Opening Price is
within the OQR (and would not trade through the limit price(s) of
interest within the OQR, which is unable to be fully executed at the
Opening Price), the system will determine if the total number of
contracts displayed at better prices than the Exchange's Potential
Opening Price on away markets (``better priced away contracts'') would
satisfy the number of marketable contracts available on the Exchange.
The Exchange will then open the option series by routing and/or trading
on the Exchange, pursuant to proposed BX Options 3, Section 8(k)(3)(C)
paragraphs (i) through (iii).
    Proposed BX Options 3, Section 8(k)(3)(i) provides that, if the
total number of better priced away contracts would satisfy the number
of marketable contracts available on the Exchange on either the buy or
sell side, the system will route all marketable contracts on the
Exchange to such better priced away markets as an Intermarket Sweep
Order (``ISO'') designated as Immediate-or-Cancel (``IOC'') order(s)
and determine an opening BBO that reflects the interest remaining on
the Exchange. The system will price any contracts routed to away
markets at the Exchange's Opening Price. The Exchange states that
routing away at the Exchange's Opening Price is intended to achieve the
best possible price available at the time the order is received by the
away market.\68\
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    \68\ See Notice, supra note 3, 85 at 45253.
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    Proposed Options 3, Section 8(k)(3)(C)(ii) provides that, if the
total number of better priced away contracts would not satisfy the
number of marketable contracts on the Exchange, the system will
determine how many contracts it has available at the Exchange Opening
Price. If the total number of better priced away contracts, plus the
number of contracts available at the Exchange Opening Price, would
satisfy the number of marketable contracts on the Exchange on either
the buy or sell side, the system will contemporaneously route, based on
price/time priority of routable interest, a number of contracts that
will satisfy interest at away markets at prices better than the Opening
Price and trade available contracts on the Exchange at the Exchange
Opening Price.\69\ The system will price any contracts routed to away
markets at the better of the Exchange Opening Price or the order's
limit price pursuant to proposed Options 3, Section 8(k)(3)(C)(ii).\70\
The Exchange states that this proposed rule is designed to maximize
execution of interest on the Exchange or away markets.\71\
---------------------------------------------------------------------------

    \69\ See proposed BX Options 3, Section 8(k)(3)(C)(ii).
    \70\ See id.
    \71\ See id.
---------------------------------------------------------------------------

    Proposed Options 3, Section 8(k)(3)(C)(iii) provides that, if the
total number of better priced away contracts, plus the number of
contracts available at the Opening Price, plus the contracts available
at away markets at the Exchange Opening Price would satisfy the number
of marketable contracts on the Exchange has, on either the buy or sell
side, the system will contemporaneously route, based on price/time
priority of routable interest, a number of contracts that will satisfy
such away market interest (pricing any contracts routed to away markets
at the better of the Exchange Opening Price or the order's limit
price), trade available contracts on the Exchange at the Exchange
Opening Price, and route a number of contracts that will satisfy
interest at other markets at prices equal to the Opening Price. The
Exchange states that routing at the better of the Exchange Opening
Price or the order's limit price is intended to achieve the best
possible price available at the time the order is received by the away
market and that routing at the order's limit price ensures that the
order's limit price is not violated.\72\
---------------------------------------------------------------------------

    \72\ See Notice, supra note 3, 85 FR at 45253-54.
---------------------------------------------------------------------------

    Proposed Options 3, Section 8(k)(3)(D) provides that the system may
send up to two additional Imbalance Messages (which may occur while the
Route Timer is operating) bounded by the OQR and reflecting away market
interest in the volume. After the Route Timer has expired, the
processes in proposed Options 3, Section 8(k)(3)(C)

will repeat (except no new Route Timer will be initiated).\73\
---------------------------------------------------------------------------

    \73\ See proposed BX Options 3, Section 8(k)(3)(D).
---------------------------------------------------------------------------

9. Forced Opening
    Proposed Options 3, Section 8(k)(3)(E) describes the process that
occurs if the steps described above have not resulted in an opening of
the options series. After all additional Imbalance Messages have been
broadcasted pursuant to proposed Options 3, Section 8(k)(3)(D), the
system will open the series by executing as many contracts as possible
by routing to away markets at prices better than the Exchange Opening
Price for their disseminated size, trading available contracts on the
Exchange at the Exchange Opening Price bounded by OQR (without trading
through the limit price(s) of interest within OQR, which is unable to
be fully executed at the Opening Price).\74\ The system will also route
contracts to away markets at prices equal to the Exchange Opening Price
at their disseminated size.\75\ In this situation, the system will
price any contracts routed to away markets at the better of the
Exchange Opening Price or the order's limit price.\76\ Any unexecuted
interest from the imbalance not traded or routed will be cancelled back
to the entering Participant, if they remain unexecuted and priced
through the Opening Price, otherwise orders will remain in the Order
Book.\77\ All other interest will be eligible for trading after
opening, if consistent with the Participant's instruction.\78\
---------------------------------------------------------------------------

    \74\ See proposed BX Options 3, Section 8(k)(3)(E).
    \75\ See id.
    \76\ See id.
    \77\ See id. The Exchange believes that cancelling the order
back to the Participant allows for the Participant to determine how
its customer would like its order to be handled. See Notice, supra
note 3, 85 FR at 45254. In comparison, on Phlx, unless the member
that submitted the original order has instructed the exchange in
writing to reenter the remaining size, the remaining size will be
automatically submitted as a new order. See id.
    \78\ See id.
---------------------------------------------------------------------------

    Proposed Options 3, Section 8(k)(3)(F) provides that the system
will execute non-routable orders, such as ``Do-Not-Route'' or ``DNR''
Orders,\79\ to the extent possible. The system will only route non-
contingency orders.\80\
---------------------------------------------------------------------------

    \79\ A Do-Not-Route Order is described within BX Options 5,
Section 4(a)(iii)(A).
    \80\ See proposed BX Options 3, Section 8(k)(3)(F).
---------------------------------------------------------------------------

    The Exchange proposes to state at Options 3, Section 8(k)(4) that,
pursuant to Options 3, Section 8(k)(3)(F), the system will re-price Do
Not Route Orders (that would otherwise have to be routed to the
exchange(s) disseminating the ABBO for an opening to occur) to a price
that is one minimum trading increment inferior to the ABBO, and
disseminate the re-priced DNR Order as part of the new BBO. Proposed BX
Options 3, Section 8(k)(5) provides that the system will cancel any
order or quote that is priced through the Opening Price. All other
interest will be eligible for trading after the opening. Proposed BX
Options 3, Section 8(k)(6), provides that during the opening of the
option series, where there is an execution possible, the system will
give priority to Market Orders \81\ first, then to resting Limit Orders
\82\ and quotes. BX's Order Book allocation provisions in Options 3,
Section 10 will apply.\83\ Proposed BX Options 3, Section 8(k)(7)
provides that upon opening of an option series, regardless of an
execution, the system disseminates the price and size of the Exchange's
best bid and offer (BBO). Finally, proposed BX Options 3, Section
8(k)(8) provides that any remaining contracts, which are not priced
through the Exchange Opening Price after routing a number of contracts
to satisfy better priced away contracts, will be posted to the Order
Book at the better of the away market price or the order's limit price.
---------------------------------------------------------------------------

    \81\ BX Options 3, Section 7(a)(5) defines ``Market Orders.''
    \82\ BX Options 3, Section 7(a)(3) defines ``Limit Orders.''
    \83\ See proposed BX Options 3, Section 8(k)(6).
---------------------------------------------------------------------------

10. Opening Process Cancel Timer
    The Exchange proposes to retain BX's Opening Order Cancel Timer,
which is currently described within Options 3, Section 8(c). The
Exchange proposes to relocate this rule text to Options 3, Section
8(l), and rename it ``Opening Process Cancel Timer.'' \84\ The Opening
Process Cancel Timer represents a period of time since the underlying
market has opened, and is established and disseminated by the Exchange
on its website.\85\ If an option series has not opened before the
conclusion of the Opening Process Cancel Timer, a Participant may elect
to have orders returned by providing written notification to the
Exchange.\86\ These orders include all non-Good Til Cancelled Orders
received over the FIX protocol.\87\
---------------------------------------------------------------------------

    \84\ The Exchange states that while it is retaining the timer,
the Exchange proposes to amend the rule text to conform the language
to Phlx's rule text. See Notice, supra note 3, 85 FR at 45255
    \85\ See proposed BX Options 3, Section 8(l).
    \86\ See id.
    \87\ See id.
---------------------------------------------------------------------------

B. Other Changes

    The Exchange proposes to remove the rule text from BX Options 2,
Section 4(g) (Unusual Conditions--Opening Auction) and reserve the
subparagraph. As described above, the Exchange proposes to state within
the definition of ``Valid Width Quote'' at proposed BX Options 3,
Section 8(a)(9), that the Exchange may establish bid/ask differentials
other than those listed in proposed BX Options 3, Section 8(a)(9) for
one or more series or classes of options. The rule text of current BX
Options 2, Section 4(g) permits spread differentials of up to two
times, or in exceptional circumstances, up to three times, the legal
limits permitted under the rules of BX Options. The Exchange proposes
to delete the rule text from BX Options 2, Section 4(g) in order to
conform its rules to the proposed Opening Process and align BX with the
procedures of other Nasdaq options exchanges follow, which notify
members in writing, via an Options Regulatory Alert, of any discretion
that is being granted by the Exchange.\88\
---------------------------------------------------------------------------

    \88\ See Notice, supra note 3, 85 FR at 45256.
---------------------------------------------------------------------------

C. Implementation

    The Exchange states that it intends to begin implementation of the
proposed rule change prior to October 30, 2020.\89\ The Exchange
represents that it will issue an Options Trader Alert to Members to
provide notification of the symbols that will migrate and the relevant
dates.\90\
---------------------------------------------------------------------------

    \89\ See id.
    \90\ See id. For a more detailed description of the proposed
rule change, see Notice, supra note 3.
---------------------------------------------------------------------------

III. Discussion and Commission Findings

    After careful review, 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.\91\ In particular, the Commission finds that the proposed
rule change is consistent with Section 6(b)(5) of the Act,\92\ 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 foster
cooperation and coordination with persons engaged in facilitating
transactions in securities, to remove impediments to and perfect the
mechanism of a free and open market and a national market system, and,
in general, to protect investors and the public interest.
---------------------------------------------------------------------------

    \91\ 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).
    \92\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange proposes to delete in its entirety the current opening
process and replace it with an opening process

similar to the process in place on Phlx, with conforming changes to
reflect particularlities to the BX market.\93\ In making this change,
the Exchange delineates detailed steps of the opening process. By
providing more clearly each sequence of the opening process, the
Commission notes that the proposed rule helps market participants
understand how the new opening process will operate. To that extent,
the new opening process may promote transparency, reduce the potential
for investor confusion, and assist market participants in deciding
whether to participate in BX's opening process. Further, if they do
participate in the new opening process, the proposed rule may help
provide market participants with the confidence and certainty as to how
their orders or quotes will be processed.
---------------------------------------------------------------------------

    \93\ See, e.g., supra note 7.
---------------------------------------------------------------------------

    Further, the Commission believes that the proposed rule change is
designed to promote just and equitable principles of trade by seeking
to ensure that option series open in a fair and orderly manner. For
example, the Commission notes that the proposed rule change is designed
to mitigate the effects of the underlying security's volatility as the
overlying option series undergoes the opening process. Specifically,
the proposed rule provides for a range of no less than 100 milliseconds
and no more than 5 seconds in order to ensure that the Exchange has the
ability to adjust the period for which the underlying must be open on
the primary market before the opening process commences.\94\ Moreover,
the Commission notes that the proposed rule provides an orderly process
for handling eligible interests during the opening process, while
seeking to avoid opening executions at suboptimal prices. For instance,
the proposed rule ensures that the Opening Process will stop and an
option series will not open if the ABBO becomes crossed, which can be
indicative of price uncertainty with respect to an option series.
Likewise, the Exchange will not open an option series with a trade
unless any of the following conditions occur: (1) The Potential Opening
Price is at or within the Pre-Market BBO and the ABBO, which is also a
Valid Width NBBO; (2) the Potential Opening Price is at or within the
non-zero bid ABBO, which is also a Valid Width NBBO, if the Pre-Market
BBO is crossed; or (3) where there is no ABBO, the Potential Opening
Price is at or within the Pre-Market BBO, which is also a Valid Width
NBBO. While the proposed opening process attempts to maximize the
number of contracts executed on the Exchange during such process,
including by seeking additional liquidity, if necessary, the Commission
notes that the proposed opening process takes into consideration away
market interests and ensures that better away prices are not traded
through.
---------------------------------------------------------------------------

    \94\ See supra note 29.
---------------------------------------------------------------------------

    For these reasons, 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
Exchange Act,\95\ that the proposed rule change (SR-BX-2020-016), be,
and it hereby is, approved.
---------------------------------------------------------------------------

    \95\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\96\
---------------------------------------------------------------------------

    \96\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-19718 Filed 9-4-20; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 80, Number 122 (Thursday, June 25, 2015)]
[Notices]
[Page 36593]
[FR Doc No: 2015-15549]

=======================================================================
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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

[Summary Notice No. FAA-2015-42]

Petition for Exemption; Summary of Petition Received; Mr. Ross
Barone

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice.

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

SUMMARY: This notice contains a summary of a petition seeking relief
from specified requirements of Title 14 of the Code of Federal
Regulations. The purpose of this notice is to improve the public's
awareness of, and participation in, the FAA's exemption process.
Neither publication of this notice nor the inclusion or omission of
information in the summary is intended to affect the legal status of
the petition or its final disposition.

DATES: Comments on this petition must identify the petition docket
number and must be received on or before July 15, 2015.

ADDRESSES: Send comments identified by docket number FAA-2015-1485
using any of the following methods:
     Federal eRulemaking Portal: Go to http://www.regulations.gov and follow the online instructions for sending your
comments electronically.
     Mail: Send comments to Docket Operations, M-30; U.S.
Department of Transportation (DOT), 1200 New Jersey Avenue SE., Room
W12-140, West Building Ground Floor, Washington, DC 20590-0001.
     Hand Delivery or Courier: Take comments to Docket
Operations in Room W12-140 of the West Building Ground Floor at 1200
New Jersey Avenue SE., Washington, DC, between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal holidays.
     Fax: Fax comments to Docket Operations at<PHONE_NUMBER>.
    Privacy: In accordance with 5 U.S.C. 553(c), DOT solicits comments
from the public to better inform its rulemaking process. DOT posts
these comments, without edit, including any personal information the
commenter provides, to http://www.regulations.gov, as described in the
system of records notice (DOT/ALL-14 FDMS), which can be reviewed at
http://www.dot.gov/privacy.
    Docket: Background documents or comments received may be read at
http://www.regulations.gov at any time. Follow the online instructions
for accessing the docket or go to the Docket Operations in Room W12-140
of the West Building Ground Floor at 1200 New Jersey Avenue SE.,
Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday,
except Federal holidays.

FOR FURTHER INFORMATION CONTACT: Alphonso Pendergrass<PHONE_NUMBER>,
Office of Rulemaking, Federal Aviation Administration, 800 Independence
Avenue SW., Washington, DC 20591.
    This notice is published pursuant to 14 CFR 11.85.

    Issued in Washington, DC, on June 12, 2015.
Brenda D. Courtney,
Acting Director, Office of Rulemaking.

Petition for Exemption

    Docket No.: FAA-2015-1485.
    Petitioner: Ross Barone.
    Section(s) of 14 CFR Affected: Sec. Sec.  61.155(c)(14) and 61.156.
    Description of Relief Sought: Mr. Barone is requesting exemption
from the Airline Transport Pilot (ATP) and Certification Training
Requirements (CTP) requirements of Sec.  61.156, based on his training
and experience as a naval aviator for the United States Navy.

[FR Doc. 2015-15549 Filed 6-24-15; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register Volume 76, Number 31 (Tuesday, February 15, 2011)]
[Notices]
[Pages 8810-8811]
[FR Doc No: 2011-3292]

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

DEPARTMENT OF TRANSPORTATION

Federal Railroad Administration

Petition for Waiver of Compliance

    In accordance with Part 211 of Title 49 Code of Federal Regulations
(CFR), notice is hereby given that the Federal Railroad Administration
(FRA) has received a request for a waiver of compliance from certain
requirements of its safety standards. The individual petition is
described below, including the party seeking relief, the regulatory
provisions involved, the nature of the relief being requested, and the
petitioner's arguments in favor of relief.

San Diego Trolley Incorporated

[Waiver Petition Docket Number FRA-2000-7137]

    The San Diego Trolley Incorporated (SDTI) seeks a 5-year extension
of its current waiver of compliance from certain provisions of 49 CFR
for certain portions of its light-rail transit operations, employing
temporal separation in order to safely share track with the general
railroad system's San Diego and Imperial Valley Railroad (SDIV). SDTI
seeks relief from certain requirements of 49 CFR part 217, Railroad
Operating Rules (except for Sec.  217.9(d)); Part 218, Railroad
Operating Practices (Sec.  218.27(a)); Part 219, Control of Drug and
Alcohol Abuse; Part 220, Railroad Communications; Part 221, Rear End
Marking Device Passenger, Commuter and Freight Trains; Part 223, Safety
Glazing Standards-Locomotives, Passenger Cars, and Cabooses (Sec. Sec.
223.99(c), 223.17, 223.15(c)); Part 225, Accident Reporting and
Investigation; Part 229, Railroad Locomotive Safety Standards
(Sec. Sec.  229.46-229.59, 229.61, 229.65, 229.71, 229.77, 229.125,
229.135); Part 231, Railroad Safety Appliance Standards (Sec.  231.14);
Part 238, Passenger Equipment Safety Standards (Sec. Sec.  238.1135,
238.114, 238.115, 238.203, 238.205, 238.207, 238.211, 238.213, 238.15,
238.17, 238.19, 238.231, 238.233, 238.235, 238.237, Subpart D
(Sec. Sec.  238.301-238.319)); Part 239, Passenger Train Emergency
Preparedness; and Part 240, Locomotive Engineer Certification.
    SDTI submits that this request is consistent with the waiver
process for shared use. See Statement of Agency Policy Concerning
Jurisdiction Over the Safety of Railroad Passenger Operations and
Waivers Related to Shared Use of the Tracks of the General Railroad
System by Light Rail and Conventional Equipment, 65 FR 42529 (July 10,
2000); see also Joint Statement of Agency Policy Concerning Shared Use
of the Tracks of the General Railroad System by Conventional Railroads
and Light Rail Transit Systems, 65 FR 42626 (July 10, 2000). SDTI
received its initial waiver and permission from FRA in January 2001. In
August 2004, SDTI received permission from FRA to modify the terms and
conditions of the original 2001 waiver to include limited joint
nighttime operations on the light-rail Blue Line with westbound SDIV
freight trains. SDTI was granted a 5-year extension of the terms and
conditions of the original waiver, with modifications approved in 2004
and 2006. SDTI states in this waiver renewal that nothing has changed
since the 2006 decision letter was rendered by FRA.
    Interested parties are invited to participate in these proceedings
by submitting written views, data, or comments. FRA does not anticipate
scheduling a public hearing in connection with these proceedings since
the facts do not appear to warrant a hearing. If any interested party
desires an opportunity for oral comment, they

should notify FRA, in writing, before the end of the comment period and
specify the basis for their request.
    All communications concerning these proceedings should identify the
appropriate docket number (e.g., Waiver Petition Docket Number FRA-
2000-7137) and may be submitted by any of the following methods:
     Web site: http://www.regulations.gov. Follow the online
instructions for submitting comments.
     Fax:<PHONE_NUMBER>.
     Mail: Docket Operations Facility, U.S. Department of
Transportation, 1200 New Jersey Avenue, SE., W12-140, Washington, DC
20590.
     Hand Delivery: 1200 New Jersey Avenue, SE., Room W12-140,
Washington, DC 20590, between 9 a.m. and 5 p.m., Monday through Friday,
except Federal holidays.
    Communications received within 45 days of the date of this notice
will be considered by FRA before final action is taken. Comments
received after that date will be considered as far as practicable. All
written communications concerning these proceedings are available for
examination during regular business hours (9 a.m.-5 p.m.) at the above
facility. All documents in the public docket are also available for
inspection and copying on the Internet at the docket facility's Web
site at http://www.regulations.gov.
    Anyone is able to search the electronic form of any written
communications and comments received into any of our dockets by the
name of the individual submitting the document (or signing the
document, if submitted on behalf of an association, business, labor
union, etc.). You may review DOT's complete Privacy Act Statement in
the Federal Register published on April 11, 2000 (65 FR 19477) or at
http://www.dot.gov/privacy.html.

    Issued in Washington, DC, on February 9, 2011.
Robert C. Lauby,
Deputy Associate Administrator for Regulatory and Legislative
Operations.
[FR Doc. 2011-3292 Filed 2-14-11; 8:45 am]
BILLING CODE 4910-06-P


[Federal Register Volume 83, Number 184 (Friday, September 21, 2018)]
[Rules and Regulations]
[Pages 47842-47843]
[FR Doc No: 2018-20532]

=======================================================================
-----------------------------------------------------------------------

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 300

[EPA-HQ-SFUND-1989-0011; FRL-9983-87--Region 1]

National Oil and Hazardous Substances Pollution Contingency Plan;
National Priorities List: Deletion of the Union Chemical Co., Inc.
Superfund Site

AGENCY: Environmental Protection Agency.

ACTION: Final rule.

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

SUMMARY: The Environmental Protection Agency (EPA) Region 1 announces
the deletion of the Union Chemical Co., Inc. Superfund Site (Site)
located in South Hope, Maine, from the National Priorities List (NPL).
The NPL, promulgated pursuant to section 105 of the Comprehensive
Environmental Response, Compensation, and Liability Act (CERCLA) of
1980, as amended, is an appendix of the National Oil and Hazardous
Substances Pollution Contingency Plan (NCP). The EPA and the State of
Maine, through the Department of Environmental Protection (MEDEP), have
determined that all appropriate response actions under CERCLA, other
than operation and maintenance, monitoring, and five-year reviews, have
been completed. However, this deletion does not preclude future actions
under Superfund.

DATES: This action is effective September 21, 2018.

ADDRESSES: Docket: EPA has established a docket for this action under
Docket Identification No. EPA-HQ-SFUND-1989-0011. All documents in the
docket are listed on the http://www.regulations.gov website. Although
listed in the index, some information is not publicly available, i.e.,
Confidential Business Information 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 through http://www.regulations.gov or in hard copy at the site information repository.
Location, contacts, phone numbers and viewing hours for the site
information repository are:
    U.S. EPA Region 1, Superfund Records Center, 5 Post Office Square,
Suite 100, Boston, MA 02109; Phone:<PHONE_NUMBER>; Monday-Friday: 9:00
a.m.-5:00 p.m., Saturday and Sunday: Closed.

FOR FURTHER INFORMATION CONTACT: Terrence Connelly, Remedial Project
Manager, U.S. Environmental Protection Agency, Region 1, Mailcode
OSRR07-1, 5 Post Office Square, Boston, MA 02109;<PHONE_NUMBER>;
email: [email protected].

SUPPLEMENTARY INFORMATION: The site to be deleted from the NPL is:
Union Chemical Co., Inc. Superfund Site, South Hope, Maine. A Notice of
Intent to Delete for this Site was published in the Federal Register
(83 FR 34508) on July 20, 2018.
    The closing date for comments on the Notice of Intent to Delete was
August 20, 2018. Two public comments were received. One commenter
argued against deletion because they believe that groundwater
contamination is being left behind inappropriately under EPA's 2013
technical impracticability determination and proposed Site deletion,
and that the implementation of the Declaration of Environmental
Covenant (deed restriction) on the Site properties was done without
public oversight. The second commenter voiced the belief that the
deletion was a political decision ultimately directed from the White
House.
    In response, EPA notes that the chain of events leading to the
proposed deletion began several years ago, when after multiple remedial
attempts from 1996 to 2005, EPA determined in 2013 that it was
technically impracticable to restore groundwater at the Site to
drinking water quality. In a 2013 Record of Decision Amendment (ROD
Amendment), EPA waived the requirement to meet groundwater cleanup
standards due to technical impracticability because (1) the original
groundwater pump-and-treat remedy had reached the limits of its
effectiveness, (2) three additional innovative in situ technologies had
proven unsuccessful in attaining the groundwater cleanup standards, and
(3) a technical evaluation of cleanup alternatives indicated that no
technology was available for achieving groundwater cleanup standards in
a reasonable timeframe (in this case, under 300 years) due to Site-
specific hydrogeological and contaminant conditions. The 2013 ROD
Amendment also adjusted the institutional control requirements of the
remedy selected in the 1990 Record of Decision (ROD) with more
specifics on the land use controls to be included in the deed
restriction for the Site properties. Before the ROD Amendment was
finalized, EPA presented about the revised site remedy in several
meetings to the Town of Hope community. EPA received concurrence from
the State and only positive comments from the public on the ROD
Amendment. Consistent with the requirements of the ROD and ROD
Amendment, MEDEP, working with the Maine Attorney General's Office and
EPA, drafted and recorded the Declaration of Environmental Covenants.
Upon the recording of the deed restriction, the Site became eligible
for deletion, leading EPA to issue the Notice of Intent to Delete the
Site.
    A responsiveness summary was prepared and placed in the docket,
EPA-HQ-SFUND-1989-0011, on www.regulations.gov, and in the Superfund
Records Center listed above.
    EPA maintains the NPL as the list of sites that appear to present a
significant risk to public health, welfare, or the environment.
Deletion from the NPL does not preclude further remedial action.
Whenever there is a significant release from a site deleted from the
NPL, the deleted site may be restored to the NPL without application of
the hazard ranking system. Deletion of a site from the NPL does not
affect responsible party liability in the unlikely event that future
conditions warrant further actions.

List of Subjects in 40 CFR Part 300

    Environmental protection, Air pollution control, Chemicals,
Hazardous substances, Hazardous waste, Intergovernmental relations,
Penalties, Reporting and recordkeeping requirements, Superfund, Water
pollution control, Water supply.

     Dated: September 6, 2018.
Alexandra Dunn,
Regional Administrator, Region 1.

    For reasons set out in the preamble, 40 CFR part 300 is amended as
follows:

PART 300--NATIONAL OIL AND HAZARDOUS SUBSTANCES POLLUTION
CONTINGENCY PLAN

0
1. The authority citation for part 300 continues to read as follows:

    Authority: 33 U.S.C. 1321(d); 42 U.S.C. 9601-9657; E.O. 13626,
77 FR 56749, 3 CFR, 2013 Comp., p. 306; E.O. 12777, 56 FR 54757, 3
CFR, 1991 Comp., p. 351; E.O. 12580, 52 FR 2923, 3 CFR, 1987 Comp.,
p. 193.

Appendix B to Part 300--[Amended]

0
2. Table 1 of appendix B to part 300 is amended by removing the listing
under Maine for ``Union Chemical Co., Inc''.

[FR Doc. 2018-20532 Filed 9-20-18; 8:45 am]
 BILLING CODE 6560-50-P


[Federal Register Volume 81, Number 35 (Tuesday, February 23, 2016)]
[Rules and Regulations]
[Pages 8841-8843]
[FR Doc No: 2016-03789]

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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 117

[Docket No. USCG-2016-0058]
RIN 1625-AA09

Drawbridge Operation Regulation; Acushnet River, New Bedford and
Fairhaven, MA

AGENCY: Coast Guard, DHS.

ACTION: Final rule.

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

SUMMARY: The Coast Guard is making a correction to the operating
schedule that governs the New Bedford-Fairhaven Rt-6 Bridge, mile 0.0,
across the Acushnet River, between New Bedford and Fairhaven, MA. On
July 1, 2013, a technical amendment was published that updated the name
of the bridge, however, the requested correction was drafted
incorrectly and three subparagraphs were inadvertently removed from the
section.

DATES: This rule is effective February 23, 2016.

ADDRESSES: To view documents mentioned in this preamble as being
available in the docket, go to http://www.regulations.gov, type [USCG-
2016-0058]. In the ``SEARCH'' box and click ``SEARCH.'' Click on Open
Docket Folder on the line associated with this rulemaking.

FOR FURTHER INFORMATION CONTACT: If you have questions on this rule,
call or email Mr. Christopher J. Bisignano, Supervisory Bridge
Management Specialist, First Coast Guard District, Coast Guard;
telephone<PHONE_NUMBER> or email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

I. Table of Abbreviations

CFR Code of Federal Regulations
DHS Department of Homeland Security
FR Federal Register
NPRM Notice of proposed rulemaking
Sec.  Section
U.S.C. United States Code

II. Background Information and Regulatory History

    Each year on July 1, the printed edition of Title 33 of the Code of
Federal Regulations (CFR) is recodified. On July 1, 2013, the Coast
Guard published a Final Rule entitled, ``Navigation and Navigable
Waters; Technical, Organizational, and Conforming Amendments'' in the
Federal Register (78 FR 39163). This 2013 rule made technical and
editorial corrections throughout Title 33 but did not create any
substantive requirements. In this rule the Coast Guard requested that
the term ``drawspan'' be replaced with the actual name of the bridge
(New Bedford-Fairhaven Rt-6 Bridge) in 33 CFR 117.585(a). However,
misinterpretation of the asterisks in the regulatory text, which were
used to denote that all paragraphs and subordinate paragraphs after
paragraph (a) in Sec.  117.585 were to remain unchanged, caused the
subparagraphs (1) through (3) to be removed.
    The Coast Guard is issuing this final rule without prior notice and
opportunity to comment pursuant to authority under section 4(a) of the
Administrative Procedure Act (APA) (5 U.S.C. 553(b)). This provision
authorizes an agency to issue a rule without prior notice and
opportunity to

comment when the agency for good cause finds that those procedures are
``impracticable, unnecessary, or contrary to the public interest.''
Under 5 U.S.C. 553(b), the Coast Guard finds that good cause exists for
not publishing a notice of proposed rulemaking (NPRM) with respect to
this rule because the publishing of the Final Rule entitled,
``Navigation and Navigable Waters; Technical, Organizational, and
Conforming Amendments,'' in the Federal Register (78 FR 39163) on July
1, 2013, inadvertently removed established regulatory language. The
three subparagraphs under 33 CFR 117.585(a) were inadvertently removed
from the CFR. Therefore, it is unnecessary to issue a rule without
prior notice and opportunity to comment.
    We are issuing this rule under 5 U.S.C. 553(d)(3), the Coast Guard
finds that good cause exists for making this rule effective in less
than 30 days after publication in the Federal Register for the same
reasons as stated above.

III. Legal Authority and Need for Rule

    The Coast Guard is issuing this rule under authority 33 U.S.C. 499.
    The purpose of this rule is to correct an error that occurred in
the publication of the Final Rule on July 1, 2013, entitled,
``Navigation and Navigable Waters; Technical, Organizational, and
Conforming Amendments,'' in the Federal Register (78 FR 39163). The use
of the asterisks in the regulatory text were misinterpreted causing
subparagraphs (1) through (3) to be inadvertently removed from 33 CFR
117.585(a).
    The New Bedford-Fairhaven Rt-6 Bridge remains an active bridge and
subparagraph's (1) through (3) contain the actual operating schedule
for the bridge. The bridge continues to operate under that schedule and
the subparagraphs need to be reinserted into 33 CFR 117.585(a) to
inform the public of the legal operating schedule of the bridge.

IV. Discussion of Final Rule

    This rule will correct 33 CFR 117.585(a) by restoring subparagraphs
(1) through (3) which contain the actual operating schedule for the New
Bedford-Fairhaven Rt-6 Bridge. As paragraph (a) is currently codified
in the rule, there is only the introductory language. This language by
itself does not explain to the public the operating schedule for the
bridge. The intention of this rule is to restore the operating language
to 33 CFR 117.585(a) as it appeared immediately prior to the July 1,
2013, codification of 33 CFR.

V. Regulatory Analyses

    We developed this rule after considering numerous statutes and
Executive Orders related to rulemaking. Below we summarize our analyses
based on a number of these statutes and Executive Orders, and we
discuss First Amendment rights of protesters.

A. Regulatory Planning and Review

    Executive Orders 12866 and 13563 direct agencies to assess the
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits. Executive Order 13563 emphasizes the importance of
quantifying both costs and benefits, of reducing costs, of harmonizing
rules, and of promoting flexibility. This rule has not been designated
a ``significant regulatory action,'' under Executive Order 12866.
Accordingly, it has not been reviewed by the Office of Management and
Budget.
    The Coast Guard does not consider this rule to be ``significant''
under that Order because it corrects inadvertently omitted language
that is consistent with the current operation of the bridge. Therefore,
this rule does not affect the way vessels operate on the waterway near
and through the bridge.

B. Impact on Small Entities

    The Regulatory Flexibility Act of 1980 (RFA), 5 U.S.C. 601-612, as
amended, requires federal agencies to consider the potential impact of
regulations on small entities during rulemaking. The term ``small
entities'' comprises small businesses, not-for-profit organizations
that are independently owned and operated and are not dominant in their
fields, and governmental jurisdictions with populations of less than
50,000. The Coast Guard certifies under 5 U.S.C. 605(b) that this rule
will not have a significant economic impact on a substantial number of
small entities.
    While some owners or operators of vessels intending to transit the
bridge may be small entities, for the reasons stated in section V.A.
above, this rule will not have a significant economic impact on any
vessel owner or operator. While the operating schedule was
inadvertently removed from the rule, the bridge continues to operate as
it had prior to the removal of the operating schedule in the CFR.
    Under section 213(a) of the Small Business Regulatory Enforcement
Fairness Act of 1996 (Pub. L. 104-121), we want to assist small
entities in understanding this rule. If the rule would affect your
small business, organization, or governmental jurisdiction and you have
questions concerning its provisions or options for compliance, please
contact the person listed in the FOR FURTHER INFORMATION CONTACT,
above. Small businesses may send comments on the actions of Federal
employees who enforce, or otherwise determine compliance with, Federal
regulations to the Small Business and Agriculture Regulatory
Enforcement Ombudsman and the Regional Small Business Regulatory
Fairness Boards. The Ombudsman evaluates these actions annually and
rates each agency's responsiveness to small business. If you wish to
comment on actions by employees of the Coast Guard, call 1-888-REG-FAIR
(1-888-734-3247). The Coast Guard will not retaliate against small
entities that question or complain about this rule or any policy or
action of the Coast Guard.

C. Collection of Information

    This rule calls for no new collection of information under the
Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520).

D. Federalism and Indian Tribal Government

    A rule has implications for federalism under Executive Order 13132,
Federalism, if it has a substantial direct effect on the States, on the
relationship between the national government and the States, or on the
distribution of power and responsibilities among the various levels of
government. We have analyzed this rule under that Order and have
determined that it is consistent with the fundamental federalism
principles and preemption requirements described in Executive Order
13132.
    Also, this rule does not have tribal implications under Executive
Order 13175, Consultation and Coordination with Indian Tribal
Governments, because it does not have a substantial direct effect on
one or more Indian tribes, on the relationship between the Federal
Government and Indian tribes, or on the distribution of power and
responsibilities between the Federal Government and Indian tribes.

E. Unfunded Mandates Reform Act

    The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538)
requires Federal agencies to assess the effects of their discretionary
regulatory actions. In particular, the Act addresses actions that may
result in the expenditure by a State, local, or tribal government, in
the aggregate, or by the private sector of $100,000,000 (adjusted for
inflation) or more in any one year. Though this rule will not result in
such expenditure, we

do discuss the effects of this rule elsewhere in this preamble.

F. Environment

    We have analyzed this rule under Department of Homeland Security
Management Directive 023-01 and Commandant Instruction M16475.lD, which
guides the Coast Guard in complying with the National Environmental
Policy Act of 1969 (NEPA) (42 U.S.C. 4321-4370f), and have made a
determination that this action is one of a category of actions which do
not individually or cumulatively have a significant effect on the human
environment. This rule simply promulgates the operating regulations or
procedures for drawbridges. This action is categorically excluded from
further review, under figure 2-1, paragraph (32)(e), of the
Instruction.
    Under figure 2-1, paragraph (32)(e), of the Instruction, an
environmental analysis checklist and a categorical exclusion
determination are not required for this rule.

G. Protest Activities

    The Coast Guard respects the First Amendment rights of protesters.
Protesters are asked to contact the person listed in the For Further
Information Contact section to coordinate protest activities so that
your message can be received without jeopardizing the safety or
security of people, places or vessels.

List of Subjects in 33 CFR Part 117

    Bridges.

    For the reasons discussed in the preamble, the Coast Guard amends
33 CFR part 117 as follows:

PART 117--DRAWBRIDGE OPERATION REGULATIONS

0
1. The authority citation for part 117 continues to read as follows:

    Authority: 33 U.S.C. 499; 33 CFR 1.05-1; Department of Homeland
Security Delegation No. 0170.1.

0
2. Revise Sec.  117.585(a) to read as follows:

Sec.  117.585  Acushnet River.

    (a) The New Bedford-Fairhaven RT-6 Bridge, mile 0.0 will be opened
promptly, provided proper signal is given, on the following schedule:
    (1) On the hour between 6 a.m. and 10 a.m. inclusive.
    (2) At a quarter past the hour between 11:15 a.m. and 6:15 p.m.
inclusive.
    (3) At all other times on call.
* * * * *

    Dated: February 8, 2016.
L.L. Fagan,
Admiral, U.S. Coast Guard, Commander, First Coast Guard District.
[FR Doc. 2016-03789 Filed 2-22-16; 8:45 am]
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