[Federal Register Volume 78, Number 74 (Wednesday, April 17, 2013)]
[Notices]
[Pages 22926-22935]
[FR Doc No: 2013-08972]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-69364; File No. SR-CBOE-2013-026]

Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing of a Proposed Rule Change, as Modified
by Amendment No. 1, Relating to Complex Orders

April 11, 2013.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on March 28, 2013, Chicago Board Options Exchange, Incorporated
(the ``Exchange'' or ``CBOE'') 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
Exchange. On April 11, 2013, the Exchange filed Amendment No. 1 to the
proposed rule change. The Commission is publishing this notice to
solicit comments on the proposed rule change, as amended, from
interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change

    The Exchange proposed to amend its rules related to complex orders.
The text of the proposed rule change is provided below.\3\
---------------------------------------------------------------------------

    \3\ The Exchange notes that it has separately proposed, among
other things, to add Interpretation and Policy .01 to Rule 6.53 and
to add paragraph (f) to Rule 6.53C, Interpretation and Policy .06.
See Exchange Act Release No. 34-69082 (March 8, 2013), 78 FR 16351
(March 14, 2013) (SR-CBOE-2013-030) (as amended by Amendment No. 1,
filed March 26, 2013) (proposed rule change to modify the Exchange's
rules to address certain option order handling procedures and
quoting obligations on the Exchange after the implementation of the
market wide equity Plan to Address Extraordinary Market Volatility).
Those proposed changes are pending approval of the Commission and
thus are not included in the rule text in this rule filing. The
Exchange does not believe that the changes proposed in SR-CBOE-2013-
030 have any effect on the proposed changes in this rule filing.
---------------------------------------------------------------------------

    (additions are italicized; deletions are [bracketed])
* * * * *

Chicago Board Options Exchange, Incorporated Rules

* * * * *
Rule 6.53. Certain Types of Orders Defined
    One or more of the following order types may be made available on a
class-by-class basis. Certain order types may not be made available for
all Exchange systems. The classes and/or systems for which the order
types shall be available will be as provided in the Rules, as the
context may indicate, or as otherwise specified via Regulatory
Circular.
    (a)-(w) No change.
    (x) Leg Order. A leg order is a limit order on the EBook that
represents one leg of a complex order resting on the COB if the ratio
of that leg is equal to or can be reduced to one (1) (e.g. 1:1, 1:2,
1:3) and the complex order is noncontingent. A leg order is a firm
order that may be included in the Exchange's displayed best bid or
offer (``Exchange BBO'') on the EBook. A leg order functions as set
forth in Rule 6.53C(c)(iv) .
* * * * *
Rule 6.53C. Complex Orders on the Hybrid System
    (a) Definition: No change.
    (b) Types of Complex Orders: No change.
    (c) Complex Order Book
    (i)-(iii) No change.
    (iv) Leg Orders:
    (1) Generation of Leg Orders. Leg orders may be automatically
generated on behalf of complex orders so that they are represented in
the individual leg markets. Specifically, the System will evaluate the
COB when a complex order enters the COB, when the Exchange BBO changes
and at a regular time interval to be determined by the Exchange (which
interval shall not exceed one (1) second) to determine whether leg
orders may be generated or displayed in accordance with the provisions
in subparagraphs (A) through (C) below. The Exchange may determine to
limit the number of leg orders generated on an objective basis.
    (A) A leg order will be automatically generated for a leg of a
complex order resting on the top of the COB: (I) if the price of the
complex order is inside the ``derived net market,'' which is based on
the derived net price of the best-priced orders or quotes (other than
leg orders) in the EBook, and (II) at a price at which net price
execution of the complex order can be achieved if the other leg(s) of
the complex order executes against the best-priced orders or quotes
(other than leg orders). Notwithstanding the foregoing, a leg order
will not be generated if it would lock or cross the NBBO.
    (B) A leg order will only be displayed in the EBook if the price
matches or improves the Exchange BBO. If multiple resting complex
orders in different strategies generate leg orders for the same price
on the same side of a series, then the leg order with the largest size
will be displayed. If such leg orders are also for the same size, then
the first leg order generated will be displayed.
    (C) The size of a leg order will be the lesser of (I) the size of
the complex order and (II) the maximum size available in the EBook for
the other leg(s) of the complex order (divided by the leg ratio, if
applicable). If multiple resting complex orders in the same strategy
generate leg orders for the same price on the same side of a series,
then the sizes of the leg orders will be aggregated (those leg orders
will be treated as a single order until execution).

    (2) Execution of Leg Orders.
    (A) Leg orders (including any nondisplayed leg orders) will only
execute after all other executable orders and quotes (including any
nondisplayed size) at the same price are executed in full. Leg orders
at the same price will execute pursuant to the priority and execution
rules applicable to the complex orders they represent as set forth in
Rule 6.53C(c)(ii), except that displayed leg orders will have higher
priority than nondisplayed leg orders. A leg order may not execute
against another leg order.
    (B) When a leg order executes against an incoming order or quote,
the other leg(s) of the complex order represented by the leg order will
automatically execute against the best-priced resting orders or quotes
(other than leg orders) that would cause net price full or partial (in
a permissible ratio) execution of the complex order. Any leg orders on
the opposite side of the legs of the executing complex order will be
cancelled prior to the execution of that complex order. Upon execution
of the complex order, any leg orders that represent other legs of the
complex order will be cancelled. If such execution was a partial
execution, the System may generate leg orders for the remaining size of
the complex order in accordance with subparagraph (iv)(1).
    (C) An all-or-none order will only execute against a leg order if
it is at least the same size as the all-or-none order and there are no
non-leg orders at the Exchange BBO. If there are a leg order and a non-
leg order(s) at the Exchange BBO, then the all-or-none order will
either (I) execute against the non-leg order(s) if it is at least the
same size as the all-or-none order or (II) the leg order will be
cancelled and the all-or-none order will be handled as otherwise set
forth in the Rules (no new leg orders in the applicable series will be
generated until the all-or-none order is executed or cancelled).
    (3) Removal or Cancellation of Leg Orders.
    (A) The System will remove from display in the EBook a leg order if
the price of the leg order is no longer at the Exchange BBO or if a
complex order in a different strategy generates a larger-sized leg
order at the same price. Any leg orders removed from display in the
EBook will remain in the EBook as nondisplayed orders and will be
eligible for execution as set forth in subparagraph (iv)(2) above.
    (B) The System will cancel a leg order if: (I) execution at the
price of the leg order would no longer achieve the net price of the
complex order when the other leg(s) executes against the best-priced
orders or quotes (other than leg orders); (II) the complex order
executes in full or in part against another complex order; or (III) the
complex order is cancelled or modified (e.g., change in price).
Additionally, the System will cancel a leg order as set forth in
subparagraph (iv)(2) above.
    (d) Process for Complex Order RFR Auction: No change.
    . . . Interpretations and Policies:
    .01-.03 No change.
    .04 (a) No change.
    (b) For each class where COA is activated, the Exchange may also
determine to activate COA for complex orders resting in COB. For such
classes, any non-marketable order resting at the top of COB may be
automatically subject to COA if the order is within a number of ticks
away from the current derived net market. The ``derived net market''
will be calculated based on the derived net price of the individual
series legs. For stock-option orders, the derived net market for a
strategy will be calculated using the Exchange's best bid or offer in
the individual option series leg(s) and the NBBO in the stock leg. The
Exchange may also determine on a class-by-class and strategy basis to
limit the frequency of COAs initiated for complex orders resting in
COB. Notwithstanding the foregoing, if a leg order has been generated
for a complex order resting in the COB pursuant to paragraph (c)(iv) of
this Rule, the complex order will not be eligible for COA.
    .05 No change.
    .06 Special Provisions Applicable to Stock-Option Orders: Stock-
option orders may be executed against other stock-option orders through
the COB and COA. Stock-option orders will not be legged against the
individual component legs, except as provided in paragraph (d) below,
and leg orders will not be generated pursuant to paragraph (c)(iv) of
this Rule for stock-option orders.
    (a)-(e) No change.
    .07 [Reserved.]Leg Orders and Auctions:
    If there is an auction occurring in a leg series at the time that a
leg order in that series would otherwise be generated pursuant to
paragraph (c)(iv) of this Rule:
    (a) If the leg order would be on the same side of the market as the
auctioned order with a price worse than the initial auction price of
the auctioned order, then the leg order will be generated and the
auction will continue.
    (b) If the leg order would be on the same side of the market as the
auctioned order with a price equal to or better than the initial
auction price of the auctioned order, then no leg order would be
generated and the auction will continue. A leg order may later be
generated after execution of the auctioned order.
    (c) If the leg order would be on the opposite side of the market as
the auctioned order with a price that locks or crosses the initial
auction price of the auctioned order, then no leg order would be
generated and the auction will continue. A leg order may later be
generated after execution of the auctioned order.
    (d) If the leg order would be on the opposite side of the market as
the auctioned order with a price that does not lock or cross the
initial auction price of the auctioned order, then the leg order will
be generated and the auction will continue.
    .08-.09 No change.
    .10 Execution of Complex Orders in Hybrid 3.0 Classes: For each
class trading on the Hybrid 3.0 Platform, the Exchange may determine to
not allow marketable complex orders entered into COB and/or COA to
automatically execute against individual quotes residing in the EBook.
The Exchange also may determine for each class trading on the Hybrid
3.0 Platform to not allow leg orders to be generated pursuant to
paragraph (c)(iv) for complex orders resting in the COB. The allocation
of such marketable complex orders against orders residing in the EBook
and other complex orders shall be based on the best net price(s) and,
at the same net price, multiple orders will be allocated as provided in
paragraphs (c) and/or (d) in the Rule, as applicable, subject to the
following:
    (a)-(d) No change.
    .11 No change.
    .12 Nondisplayed Leg Orders: Any generated leg order that does not
satisfy the requirements to be displayed as set forth under
subparagraph (iv)(1)(B) in this Rule will be nondisplayed. Any
nondisplayed leg orders (including leg orders removed from display)
will remain in the EBook and be eligible for execution as set forth in
subparagraph (iv)(2) in this Rule but will not be visible in the EBook
depth.
* * * * *
    The text of the proposed rule change is also available on the
Exchange's Web site (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at the Exchange's Office of the
Secretary, and at the Commission's Public Reference Room.

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

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

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

1. Purpose
    The Exchange proposes to amend its rules related to complex orders
to provide additional liquidity for complex orders resting on the
complex order book (``COB''). The Exchange proposes to adopt a new
order type called ``leg orders.'' Under Rule 6.53C, complex orders are
eligible to trade with other complex orders or by ``legging'' with the
individual orders and quotes resting in the CBOE electronic book (the
``EBook'') for the individual component legs, provided the complex
order can be executed in full (or in a permissible ratio) by the orders
and quotes in the EBook in those individual component legs. Leg orders
are designed to increase the opportunities for complex orders resting
in the COB to leg into the market and execute.
    Specifically, as defined in proposed Rule 6.53(x), a leg order is a
limit order on the EBook that represents one leg of a complex order
resting on the COB if the ratio of that leg is equal to or can be
reduced to one \4\ and the complex order is noncontingent. A leg order
is a firm order that may be included in the Exchange's displayed best
bid or offer (``Exchange BBO'') on the EBook. Like all order types
defined in Rule 6.53, the Exchange may make leg orders available on a
class-by-class basis and may not make leg orders available for all
Exchange systems.\5\
---------------------------------------------------------------------------

    \4\ Thus, a leg order may be generated for the legs of complex
orders with a ratio of 1:1, 1:2 or 1:3. For example, if a complex
order to buy 10 of series 1 and sell 20 of series 2 is resting on
the COB, a leg order will be generated for the leg to buy 10 of
series 1 (ratio of 1:2), but not for the leg to sell 20 of series 2
(ratio of 2:1). If a complex order to buy 20 of series 1 and sell 30
of series 2 is resting on the COB, no leg orders will be generated
for either leg (ratio is 2:3 for leg 1 and 3:2 for leg 2). The same
requirement applies to complex orders with more than two legs. For
example, if a complex order to buy 10 of series 1, sell 20 of series
2 and buy 10 of series 3 is resting on the COB, then leg orders will
be generated for the leg to buy 10 of series 1 and the leg to buy 10
of series 3 (ratio of 1:2), but not for the leg to sell 20 of series
2 (ratio of 2:1).
    \5\ See Rule 6.53. Consistent with provision that the Exchange
may not make leg orders available in all classes or for all Exchange
systems, the proposed rule change amends Rule 6.53C, Interpretation
and Policy .10 to provide that, for each class trading on the Hybrid
3.0 Platform, the Exchange may determine to not allow leg orders for
complex orders resting in the COB. This is also consistent with the
current rule, which provides that, for each class trading on the
Hybrid 3.0 Platform, the Exchange may determine to now allow complex
orders to leg into the market. Additionally, the proposed rule
change amends Rule 6.53C, Interpretation and Policy .06 to provide
that leg orders will not be generated for stock-option orders
resting on the COB. This is also consistent with the current rule,
which prohibits stock-option orders from legging into the regular
market. Providing the Exchange with authority to allow leg orders on
a class-by-class basis will help the Exchange manage the number of
leg orders generated under the proposed rule change to ensure that
they do not negatively impact system capacity and performance.
---------------------------------------------------------------------------

    The proposed rule change provides that leg orders may be
automatically generated on behalf of complex orders so that they are
represented in the individual leg markets. Specifically, the System
will reevaluate the COB when a complex order enters the COB, when the
Exchange BBO changes and at a regular time interval to be determined by
the Exchange (which will not exceed one second) to determine whether
leg orders may be generated or displayed. A leg order will be
automatically generated for a leg of a complex order resting on the top
of the COB: (1) if the price of the complex order is inside the
``derived net market,'' which is based on the derived net price of the
best-priced orders or quotes (other than leg orders) in the EBook; and
(2) at a price at which the net price execution can be achieved if the
other leg(s) of the complex order executes against the best-priced
orders or quotes (other than leg orders).\6\ For example:

    \6\ Overlapping legs of complex orders may not execute against
each other due to the operational difficulties that would result,
which is consistent with the current execution principles for
complex orders as otherwise set forth in Rule 6.53C that do not
allow overlapping legs of complex orders to execute against each
other. Therefore, the proposed rule change provides that the derived
net market and the price of leg orders will be based on the best-
priced non-leg orders in the other leg series, as those are the
orders against which a complex order may execute.

    Example A A complex order to buy 10 Series 1 (S1) and to sell 10
Series 2 (S2) at a net price of -$0.05 (buy S1/sell S2 10 @ -$0.05)
is entered into the COB, and there is no off-setting complex
order.\7\ The complex order cannot leg into the EBook because the
Exchange BBO net price available for the complex order on the EBook
is -$0.20 as follows:
---------------------------------------------------------------------------

    \7\ For purposes of the examples in this rule filing, the
Exchange presumes that (a) the complex orders for which leg orders
are generated are the best-priced orders for that strategy and are
thus at the top of the COB, and (b) there are no non-leg orders
resting at the same price as the best-priced leg orders, unless the
example provides otherwise.

------------------------------------------------------------------------
              CBOE Bid                            CBOE Offer
------------------------------------------------------------------------
S1 10 @ $1.00                        20 @ $1.20
S2 10 @ $1.00                        20 @ $1.20
------------------------------------------------------------------------

(buy S1 @ $1.20 + sell S2 @ $1.00 = -$0.20 net)
    The derived net market is -$0.20 to $0.20, and the -$0.05 price
of the complex order is within that market,\8\ so the System
generates and displays leg orders to buy 10 S1 @ $1.05 and sell 10
S2 at $1.15, which improves the Exchange's best bid for S1 and best
offer for S2:
---------------------------------------------------------------------------

    \8\ If the price of the complex order was at -$0.20 or $0.20,
the complex order would leg into the market pursuant to Rule
6.53C(c)(ii)(1). If the price of the complex order was outside of
the derived net market (e.g. -$0.25, $0.25), then the Hybrid Trading
System (the ``System''), which is the Exchange's trading platform
that allows Market-Makers to submit electronic quotes in their
appointed classes, would not generate leg orders for the complex
order.

------------------------------------------------------------------------
              CBOE Bid                            CBOE Offer
------------------------------------------------------------------------
S1 10 @ $1.05                        20 @ $1.20
 (leg order)
S2 10 @ $1.00                        10 @ $1.15
                                     (leg order)
------------------------------------------------------------------------

    The Exchange believes it is appropriate to only generate leg orders
for complex orders resting at the top of the COB, as those are the
best-priced in that strategy and thus would have the highest priority.
Additionally, the Exchange believes it is appropriate to only generate
leg orders for complex orders with prices inside the derived net market
because the price of leg orders of a complex order outside of the
derived net market would always be generated at prices worse than the
BBO. While the Exchange wants to increase execution opportunities for
resting complex orders, the Exchange balances that interest with its
need to manage the number of leg orders generated to ensure that it
continues to have appropriate system capacity to support the leg order
functionality (as further discussed below). The Exchange believes that
not generating leg orders for complex orders that are not at the top of
the COB or that have prices outside of the derived net market helps
achieve this balance and is consistent with the Exchange's order
management plan. Additionally, because the System will evaluate the COB
when the BBO changes, those complex orders not at the top of the COB or
with prices outside the derived net market when entered

will have an opportunity to take advantage of the leg order
functionality when the market changes.
    However, a leg order will not be generated if it would lock or
cross the national best bid or offer (the ``NBBO'') in the leg series.
The Exchange believes that this is appropriate to assure compliance
with the options linkage plan. This provision will also prevent any leg
orders from trading through the best displayed prices in the leg
markets on other exchanges.
    A leg order will only be displayed in the EBook if the price
matches or improves the Exchange BBO. For example:
    Example B A complex order (Order 1) to buy 10 Series 1 (S1) and
to sell 10 Series 2 (S2) at a net price of -$0.40 (buy S1/sell S2 10
@ -$0.40) is entered into the COB, and there is no off-setting
complex order. Order 1 cannot leg into the EBook because the
Exchange BBO net price available for Order 1 on the EBook is -$0.60
as follows:

------------------------------------------------------------------------
              CBOE Bid                            CBOE Offer
------------------------------------------------------------------------
S1 10 @ $1.00                        10 @ $1.30
S2 10 @ $0.70                        10 @ $1.10
------------------------------------------------------------------------

(buy S1 @ $1.30 + sell S2 @ $0.70 = -$0.60 net)
    The derived net market is -$0.60 to $0.10, and the -$0.40 price
of Order 1 is within that market, so the System generates and
displays leg orders to buy 10 S1 @ $1.10 and sell 10 S2 at $0.90,
which improves the Exchange's best bid for S1 and best offer for S2:

------------------------------------------------------------------------
              CBOE Bid                            CBOE Offer
------------------------------------------------------------------------
S1 10 @ $1.10                        10 @ $1.30
 (leg order)
S2 10 @ $0.70                        10 @ $0.90
                                     (leg order)
------------------------------------------------------------------------

    Another complex order (Order 2) to buy 10 Series 3 (S3) and to
sell 10 Series 2 (S2) at a net price of -$0.25 (buy S3/sell S2 10 @
-$0.25) is then entered into the COB, and there is no off-setting
complex order. Order 2 cannot leg into the EBook because the
Exchange BBO net price available for Order 2 on the EBook is -$0.60
as follows:

------------------------------------------------------------------------
              CBOE Bid                            CBOE Offer
------------------------------------------------------------------------
S2 10 @ $0.70                        10 @ $0.90
                                     (leg order)
S3 10 @ $1.00                        10 @ $1.30
------------------------------------------------------------------------

(buy S3 @ $1.30 + sell S2 @ $0.70 = -$0.60 net)
    The derived net market excluding the leg orders representing is
-$0.60 to $0.10 (excluding the leg order in S2), and the -$0.25
price of Order 2 is within that market, so the System generates leg
orders to buy 10 S3 @ $0.95 and sell 10 S2 at $1.05. Because these
leg orders are at worse prices than the BBO, they are not
displayed.\9\
---------------------------------------------------------------------------

    \9\ Alternatively, if Order 2 was entered into the COB given the
original BBO market in this example (prior to the entry of Order 1),
then the leg order to buy 10 S3 @ $0.95 would still not have been
displayed, because that price would not have improved the $1.00 bid
resting in the EBook. The leg order to sell 10 S2 @ $1.05 would have
been displayed, because that price would have improved the $1.10
offer resting in the EBook.

    The proposed rule change contemplates that some leg orders may be
generated but not displayed on the EBook. To clarify how the System
handles nondisplayed leg orders, proposed Rule 6.53C, Interpretation
and Policy .12 provides that any generated leg order that does not
satisfy the requirements to be displayed as set forth in subparagraph
(iv)(1)(B) of proposed Rule 6.53C(c) will be nondisplayed. Any
nondisplayed leg orders (including leg orders that are removed from
display) will remain and the EBook and will be eligible for execution
as set forth in subparagraph (iv)(2) of proposed Rule 6.53C(c) but will
not be visible in the EBook depth. Displayed leg orders will have
higher priority than nondisplayed leg orders (i.e., if there are two
leg orders at the same price, but only one is displayed, the displayed
leg order would execute ahead of the nondisplayed leg order).\10\ The
Exchange believes that having nondisplayed leg orders available for
execution will further increase the execution opportunities for
execution of complex orders. Nondisplayed leg orders function in the
same manner as displayed leg orders, except that, for system and
technical reasons, they will not be visible in the EBook depth (which
displays resting orders and quotes not at the BBO). Additionally, the
Exchange believes having nondisplayed leg orders available for
execution with orders on the EBook is consistent with the ability for a
complex order resting in the COB to leg into the regular market and
execute against orders and quotes in the EBook. Complex orders resting
in the EBook are not visible in the regular market, but like
nondisplayed leg orders are still eligible to execute against orders
and quotes in the EBook. Nondisplayed leg orders are merely
representations of those same complex orders that are intended to
facilitate executions of those complex orders in the regular market.
---------------------------------------------------------------------------

    \10\ For example, if there are two leg orders in a series
representing complex orders in different strategies, one to buy 10
(Leg Order 1) and one to buy 20 (Leg Order 2), and the price of
those leg orders is the Exchange best bid (and there are no non-leg
orders resting at that price), Leg Order 2 is displayed because it
is larger, and Leg Order 1 is nondisplayed. If a market order to
sell 20 enters the EBook, it will execute against Leg Order 2 (Leg
Order 1 would be displayed after that execution, assuming it is
still at the Exchange best bid). Alternatively, if a market order to
sell 25 enters the EBook, 20 would execute against Leg Order 2, and
5 would execute against Leg Order 1 (the System would generate a new
leg order to buy for the remaining 5 of Leg Order 1 and display the
new leg order, assuming it is still at the Exchange best bid). As a
third alternative, if a market order to sell 35 enters the EBook, 20
would execute against Leg Order 2, 10 would execute against Leg
Order 1, and 5 would execute against the highest-priced non-leg
order in the EBook. See the discussion below for further details on
the execution of leg orders.
---------------------------------------------------------------------------

    If multiple resting complex orders in different strategies generate
leg orders for the same price on the same side of a series, then the
leg order with the largest size will be displayed.\11\ For example:
    Example C A complex order (Order 1) to buy 10 Series 1 (S1) and
to sell 10 Series 2 (S2) at a net price of -$0.05 (buy S1/sell S2 10
@ -$0.05) is entered into the COB, and there is no off-setting
complex order. Order 1 cannot leg into the EBook because the
Exchange BBO net price available for Order 1 on the EBook is -$0.20
as follows:
---------------------------------------------------------------------------

    \11\ If these leg orders are also for the same size, then the
first leg order generated will be displayed.

------------------------------------------------------------------------
              CBOE Bid                            CBOE Offer
------------------------------------------------------------------------
S1 10 @ $1.00                        10 @ $1.20
S2 20 @ $1.00                        10 @ $1.20
------------------------------------------------------------------------

(buy S1 @ $1.20 + sell S2 @ $1.00 = -$0.20 net)
    The derived net market is -$0.20 to $0.20, and the -$0.05 price
is within that market, so the System generates and displays leg
orders to buy 10 S1 @ $1.05 and sell 10 S2 at $1.15, which improves
the Exchange's best bid for S1 and best offer for S2:

------------------------------------------------------------------------
              CBOE Bid                            CBOE Offer
------------------------------------------------------------------------
S1 10 @ $1.05                        10 @ $1.20
 (Order 1 leg order)
S2 20 @ $1.00                        10 @ $1.15
                                     (Order 1 leg order)
------------------------------------------------------------------------

    Another complex order (Order 2) to buy 20 Series 3 (S3) and to
sell 20 Series 2 (S2) at a net price of -$0.05 (buy S3/sell S2 20 @
-$0.05) is then entered into the COB, and there is no off-setting
complex order. Order 2 cannot leg into the EBook because the
Exchange BBO net price available for Order 2 on the EBook is -$0.20
as follows:

------------------------------------------------------------------------
              CBOE Bid                            CBOE Offer
------------------------------------------------------------------------
S2 20 @ $1.00                        10 @ $1.15
                                     (Order 1 leg order)
S3 20 @ $1.00                        20 @ $1.20
------------------------------------------------------------------------

(buy S3 @ $1.20 + sell S2 @ $1.00 = -$0.20 net)
    The derived net market excluding leg orders is -$0.20 to $0.20,
and the -$0.05 price is within that market, so the System generates
and displays leg orders to buy 20 S3 @ $1.05 and sell 20 S2 at
$1.15, and removes from display the smaller leg order to

sell 10 S2 at $1.15,\12\ which improves the Exchange's best bid for
S3 and maintains the Exchange's best offer for S2 but increases the
available size:
---------------------------------------------------------------------------

    \12\ This smaller order will remain in the EBook as a
nondisplayed leg order that will be eligible for execution.

------------------------------------------------------------------------
              CBOE Bid                            CBOE Offer
------------------------------------------------------------------------
S2 20 @ $1.00                        20 @ $1.15 \13\
                                     (Order 2 leg order)
S3 20 @ $1.05                        20 @ $1.20
 (Order 2 leg
 order)
------------------------------------------------------------------------

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

    \13\ If a market order to buy 20 S2 is received, that order will
execute against the leg order to sell 20 S2 at $1.15 (the larger-
sized leg order), and the leg of Order 2 to buy 20 S3 will execute
against the resting offer to sell 20 S3 at $1.20. The leg order to
buy 20 S3 at $1.05 will then be cancelled upon execution of Order 2.
As a result, the net price of -$0.05 is achieved for Order 2 (buy S3
@ $1.20 + sell S2 @ $1.15 = -$0.05 net). After this execution, the
System may redisplay the leg order for Order 1 to sell 10 S2 at
$1.15, which was previously removed from display. See the discussion
below regarding the execution of leg orders.

    As set forth in the proposed definition of leg order, a leg order
will only be generated for a leg of a complex order if the ratio of the
leg is or can be reduced to one and the complex order is noncontingent.
The size of a leg order will be the lesser of (1) the size of the
complex order and (2) the maximum size available in the EBook in the
other leg series of the complex order (divided by the leg ratio, if
applicable).\14\ For example:
---------------------------------------------------------------------------

    \14\ If multiple resting complex orders in the same strategy
generate leg orders for the same price on the same side of a series,
then the sizes of the leg orders will be aggregated. The System will
treat these aggregated orders as a single leg order (until
execution, at which time they would execute in accordance with
applicable Exchange priority and execution rules set forth in Rule
6.53C(c)(ii)). Thus, if a leg order is generated and is smaller than
the aggregated size of multiple leg orders but is larger than the
individual sizes of those leg orders, the aggregated leg orders
would be displayed.

    Example D A complex order to buy 15 Series 1 (S1) and to sell 30
Series 2 (S2) (ratio of 1 buy to 2 sell) at a net price of $0.95
(buy 15 S1/sell 30 S2 @ $0.95) is entered into the COB, and there is
no off-setting complex order. The complex order cannot leg into the
EBook because the Exchange BBO net price available for the complex
order on the EBook is $0.80 as follows:

------------------------------------------------------------------------
              CBOE Bid                            CBOE Offer
------------------------------------------------------------------------
S1 10 @ $1.00                        10 @ $1.20
S2 30 @ $1.00                        30 @ $1.20
------------------------------------------------------------------------

(buy one S1 @ $1.20 + sell two S2 @ $1.00 = $0.80 net)
    The derived net market is $0.80 to $1.40, and the $0.95 price is
within that market, so the System generates and displays a leg order
to buy 15 S1 @ $1.05 (maximum size on the EBook in S2 is 30, divided
by the 2:1 ratio of the leg to sell S2), which improves the
Exchange's best bid for S1:

------------------------------------------------------------------------
              CBOE Bid                            CBOE Offer
------------------------------------------------------------------------
S1 15 @ $1.05                        10 @ $1.20
 (leg order)
S2 30 @ $1.00                        30 @ $1.20
------------------------------------------------------------------------

    The System does not generate a leg order in S2, because any leg
order could only be for 10 (maximum size available on S1), and
because the ratio of that leg is 2:1 and cannot be reduced to 1.
    The Exchange may determine to limit the number of leg orders on an
objective basis, such as limiting the number of orders generated in a
particular class, in order to curtail the number of leg orders
generated so that the Exchange may effectively manage leg orders and
ensure that it continues to have appropriate system capacity to support
the leg order functionality.\15\
---------------------------------------------------------------------------

    \15\ The Exchange will not limit the generation of leg orders on
the basis of the entering participant or the participant category of
the order (i.e., professional, professional customer, or public
customer).
---------------------------------------------------------------------------

    Leg orders (including any nondisplayed leg orders) will execute
only after all other executable orders and quotes (including any
nondisplayed size) at the same price are executed in full. Accordingly,
the generation of a leg order will not affect the existing priority, or
execution opportunities, currently provided to market participants in
the regular market in any way. Additionally, leg orders at the same
price will execute pursuant to the priority and execution rules as set
forth in Rule 6.53C(c)(ii), except that displayed leg orders will have
higher priority than nondisplayed leg orders.\16\
---------------------------------------------------------------------------

    \16\ Pursuant to Rule 6.53C(c)(ii)(2), allocation of a complex
order within the COB will be pursuant to the rules of trading
priority otherwise applicable to incoming electronic orders in the
individual component legs.
---------------------------------------------------------------------------

    When a leg order executes against an incoming order or quote, the
other leg(s) of the complex order represented by the leg order will
automatically execute against the best-priced resting orders or quotes
(other than leg orders) that would cause net price full or partial (in
a permissible ratio) execution of the complex order.\17\ Upon execution
of the complex order, any leg orders that represent other legs of the
complex order will be cancelled. For example:
---------------------------------------------------------------------------

    \17\ As discussed above, operational difficulties would result
if overlapping legs of complex orders executed against each other.
To prevent this, prior to execution of a leg order and the
represented complex order, any leg orders on the opposite side of
the legs of the executing complex order will be cancelled. As
discussed above, the price of a leg order is based on the best-
priced non-leg order in the other series, which ensures that the
executing complex order will achieve net price execution in the
event there is another leg order on the opposite side in that series
prior to execution. The other legs of the complex order will still
execute at the best available price of individual orders or quotes.
The Exchange notes that this provision will also allow resting
individual orders or quotes to execute against complex order legs,
rather than allowing those legs to execute against leg orders. After
the complex order executes, new leg orders may be generated to
``replace'' the cancelled leg orders for the still-resting complex
orders, assuming the conditions for generation in the rule have been
met. In the event a leg order is generated to ``replace'' a
previously cancelled leg order, it will have the same priority as
the ``original'' leg order with respect to any other leg orders at
the same price representing complex orders in the same strategy, as
the priority of those leg orders (which would be aggregated) is
based on the priority of the complex orders they represent (which
remains unchanged regardless of cancellations of leg orders).

    Example E A complex order to buy 10 Series 1 (S1) and to buy 10
Series 2 (S2) at a net price of $2.25 (buy S1/S2 10 @ $2.25) is
entered into the COB, and there is no off-setting complex order to
sell. The complex order cannot leg into the EBook because the
Exchange BBO net price available for the complex order on the EBook
is $2.40 as follows:

------------------------------------------------------------------------
              CBOE Bid                            CBOE Offer
------------------------------------------------------------------------
S1 10 @ $1.00                        20 @ $1.20
S2 10 @ $1.00                        20 @ $1.20
------------------------------------------------------------------------

(buy S1 @ $1.20 + buy S2 @ $1.20 = $2.40 net)
    The derived net market is $2.00 to $2.40, and the $2.25 price is
within that market, so the System generates and displays leg orders
to buy 10 S1 @ $1.05 and 10 S2 at $1.05, which improves the
Exchange's best bid for both S1 and S2:

------------------------------------------------------------------------
              CBOE Bid                            CBOE Offer
------------------------------------------------------------------------
S1 10 @ $1.05                        20 @ $1.20
 (leg order)
S2 10 @ $1.05                        20 @ $1.20
 (leg order)
------------------------------------------------------------------------

    If a market order to sell 10 S1 is received, that order will
execute against the leg order to buy 10 S1 at $1.05, and the leg of
the complex order to buy 10 S2 will execute against the resting
offer to sell 10 S2 at $1.20. The leg order to buy 10 S2 will then
be cancelled upon execution of the complex order. As a result, the
net price of $2.25 is achieved for the complex order (buy 10 S1 @
$1.05 + buy 10 S2 @ $1.20 = $2.25 net).\18\
---------------------------------------------------------------------------

    \18\ If a market order to sell 10 S2 is received, that order
will execute against the leg order to buy 10 S2 at $1.05, and the
leg of the complex order to buy 10 S1 will execute against the
resting offer to sell 10 S1 at $1.20. The leg order to buy 10 S1
will then be cancelled. As a result, the net price of $2.25 is
achieved for the complex order (buy S1 @ $1.20 + buy S2 @ $1.05 =
$2.25 net).
---------------------------------------------------------------------------

    Following the execution of the complex order, the Exchange BBO
is:

------------------------------------------------------------------------
              CBOE Bid                            CBOE Offer
------------------------------------------------------------------------
S1 10 @ $1.00                        20 @ $1.20
S2 10 @ $1.00                        10 @ $1.20
------------------------------------------------------------------------

    In addition to enabling the execution of the complex order at a
net price of $2.25, the leg order enhanced execution for orders in
the EBook, as (1) the incoming market order to sell S1 received a
better price ($1.05 instead of $1.00) and (2) the complex order
provided liquidity to execute resting interest to sell 10 S2 at
$1.20.

    If execution of the complex order is partial, the System may
generate and display new leg orders for the remaining size of the
complex order, assuming all other conditions for generation and display
of leg orders have been met. For example:

    Example F A complex order to buy 50 S1 and to buy 50 S2 at a net
price of $2.25 (buy S1/S2 50 @ $2.25) is entered into the COB, and
there is no off-setting complex order to sell. The complex order
cannot leg into the EBook because the Exchange BBO net price
available for the complex order on the EBook is $2.40 as follows:

------------------------------------------------------------------------
              CBOE Bid                            CBOE Offer
------------------------------------------------------------------------
S1 40 @ $1.05                        60 @ $1.20
S2 20 @ $1.05                        80 @ $1.20
------------------------------------------------------------------------

(buy S1 @ $1.20 + buy S2 @ $1.20 = $2.40 net)
    The derived net market is $2.10 to $2.40, and the $2.25 price is
within that market, so the System generates and displays leg orders
to buy 50 S1 @ $1.05 and 50 S2 at $1.05, which increases the size of
the Exchange's best bid for both S1 and S2:

------------------------------------------------------------------------
              CBOE Bid                            CBOE Offer
------------------------------------------------------------------------
S1 90 @ $1.05                        60 @ $1.20
 (50 leg order)
S2 70 @ $1.05                        80 @ $1.20
 (50 leg order)
------------------------------------------------------------------------

    If a market order to sell 30 S1 is received, it will execute
against the orders or quotes resting at $1.05, other than the leg
order at $1.05, pursuant to the Exchange's priority and execution
rules,\19\ and the size of the bid for S1 will be reduced:
---------------------------------------------------------------------------

    \19\ See Rules 6.45A and 6.45B.

------------------------------------------------------------------------
              CBOE Bid                            CBOE Offer
------------------------------------------------------------------------
S1 60 @ $1.05                        60 @ $1.20
 (50 leg order)
S2 70 @ $1.05                        80 @ $1.20
 (50 leg order)
------------------------------------------------------------------------

    If a market order to sell 50 S1 were then received, it will
first execute the remaining 10 S1 from the orders or quotes resting
at $1.05, other than the leg order, and then execute 40 S1 against
the leg order to buy 40 S1 at $1.05. The leg of the complex order to
buy S2 will execute against the resting offer to sell 40 S2 at
$1.20. As a result, the net price of $2.25 is achieved for a partial
execution of the complex order (buy 40 S1 @ $1.05 + buy 40 S2 @
$1.20 = $2.25 net), and the leg order to buy 50 S2 will be cancelled
upon execution of the complex order. New leg orders for the
remaining 10 S1 and 10 S2 of the complex order will be generated and
displayed at $1.05 (assuming all other criteria are met).
    Following the execution of the complex order and generation and
display of the new leg orders for the remaining size of the complex
order, the Exchange BBO is:

------------------------------------------------------------------------
              CBOE Bid                            CBOE Offer
------------------------------------------------------------------------
S1 10 @ $1.05                        60 @ $1.20
 (leg order)
S2 30 @ $1.05                        40 @ $1.20
 (10 leg order)
------------------------------------------------------------------------

    These provisions, again, will not affect the existing priority, or
execution opportunities, currently provided to market participants in
the regular market in any way, and incoming orders will still execute
at the best available prices.
    An all-or-none order will only execute against a leg order if it is
at least the same size as the all-or-none order and there are no non-
leg orders at the Exchange BBO. If there are a leg order and a non-leg
order(s) at the BBO, then the all-or-none order will either (a) execute
against the non-leg order(s) if it is at least the same size as the
all-or-none order or (b) the leg order will be cancelled and the all-
or-none order will be handled as otherwise set forth in the Rules (no
new leg orders will be generated until the all-or-none order is
executed or cancelled). This provision will ensure that an all-or-none
order will execute in full per its terms. Additionally, this provision
will ensure that a leg order will not trade before a non-leg order
(which may otherwise occur if a non-leg order at the BBO was smaller
than the all-or-none order, but the leg order at the BBO was of
sufficient size).\20\
---------------------------------------------------------------------------

    \20\ This is consistent with other Exchange rules regarding all-
or-none orders. See, e.g., Rule 6.44, Interpretation and Policy .02,
which states, among other things, that any number of transactions of
any size may appear on the tape at the same price as the all-or-none
order without the all-or-none order participating.
---------------------------------------------------------------------------

    The System will remove from display in the EBook a leg order if the
price of the leg order is no longer at the Exchange BBO or if a complex
order in a different strategy generates a larger-sized leg order at the
same price (as discussed above, if complex orders in different
strategies generate leg orders for the same price, the largest size
will be displayed).\21\ The System will cancel a leg order if: (1)
Execution at the price of the leg order would no longer achieve net
price of the complex order when the other leg(s) executes against the
best-priced orders or quotes (other than leg orders); (2) the complex
order executes in full or in part against another complex order; or (3)
the complex order is cancelled or modified (for example, the price
changes).\22\ For example:
---------------------------------------------------------------------------

    \21\ Any leg order that is removed from display in the EBook
will be nondisplayed (but still eligible for execution), and the
System may later redisplay the leg order if the conditions for
display set forth in the rule are met.
    \22\ The System may also cancel a leg order at the times set
forth in proposed subparagraph (iv)(2) of Rule 6.53C(c). After
cancellation of a leg order, the System may later generate a new leg
order for a complex order that is still resting in the COB if the
conditions for generation set forth in the rule are met.

    Example G A complex order to buy 20 S1 and to buy 20 S2 at a net
price of $2.25 (buy S1/S2 20 @ $2.25) is entered into the COB, and
there is no off-setting complex order to sell. The complex order
cannot leg into the EBook because the Exchange BBO net price
available for the complex order on the EBook is $2.40 as follows:

------------------------------------------------------------------------
              CBOE Bid                            CBOE Offer
------------------------------------------------------------------------
S1 10 @ $1.05                        20 @ $1.20
S2 10 @ $1.05                        50 @ $1.20
------------------------------------------------------------------------

(buy S1 @ $1.20 + buy S2 @ $1.20 = $2.40 net)
    The derived net market is $2.10 to $2.40, and the $2.25 price is
within that market, so the System generates and displays leg orders
to buy 20 S1 @ $1.05 and 20 S2 at $1.05, which increases the size of
the Exchange's best bid for both S1 and S2:

------------------------------------------------------------------------
              CBOE Bid                            CBOE Offer
------------------------------------------------------------------------
S1 30 @ $1.05                        20 @ $1.20
 (20 leg order)
S2 30 @ $1.05                        50 @ $1.20
 (20 leg order)
------------------------------------------------------------------------

    If a limit order to buy 10 S1 @ $1.10 is received, the System
will remove from display the leg order to buy 20 S1 at $1.05 because
it is no longer at the Exchange best bid: \23\
---------------------------------------------------------------------------

    \23\ This removed leg order will remain in the EBook as a
nondisplayed leg order that will be eligible for execution.

------------------------------------------------------------------------
              CBOE Bid                            CBOE Offer
------------------------------------------------------------------------
S1 10 @ $1.10                        20 @ $1.20
S2 30 @ $1.05                        50 @ $1.20
 (20 leg order)
------------------------------------------------------------------------

    If a market order to buy 20 S1 is received, the Exchange best
offer will move above $1.20, and the System will cancel the leg
order to buy S2 at $1.05 because the net price of $2.25 can no
longer be achieved:

------------------------------------------------------------------------
              CBOE Bid                            CBOE Offer
------------------------------------------------------------------------
S1 10 @ $1.10                        10 @ $1.25
S2 30 @ $1.05                        50 @ $1.20
------------------------------------------------------------------------

(buy S1 @ $1.25 + buy S2 @ $1.05 = $2.30 net)

    The following example further demonstrates how leg orders function
when there are leg orders representing complex orders in different
strategies:

    Example H Three complex orders enter the COB in the following
order: Order 1 to buy 10 S1 and to buy 10 S2 at a net price of $2.10
(buy S1/S2 10 @ $2.10), Order 2 to buy 10 S2 and to buy 10 S3 at a
net price of $2.10 (buy S2/S3 10 @ $2.10), and Order 3 to buy 10 S1
and to buy 10 S3 at a net price of $2.10 (buy S1/S3 10 @ $2.10.
There are no off-setting complex orders to sell with respect to any
of the three orders. The complex orders cannot leg into the EBook
because the Exchange BBO net prices available on the EBook for Order
1 is $2.20, for Order 2 is $2.20, and for Order 3 is $2.40 as
follows:

------------------------------------------------------------------------
              CBOE Bid                            CBOE Offer
------------------------------------------------------------------------
S1 10 @ $1.00                        10 @ $1.20
S2 10 @ $0.80                        10 @ $1.00
S3 10 @ $1.00                        10 @ $1.20
------------------------------------------------------------------------

(buy S1 @ $1.20 + buy S2 @ $1.00 = $2.20 net)
(buy S2 @ $1.00 + buy S3 @ $1.20 = $2.20 net)
(buy S1 @ $1.20 + buy S3 @ $1.20 = $2.40 net)
    The derived net market is $1.80 to $2.20 for Order 1, $1.80 to
$2.20 for Order 2, and $2.00 to $2.40 for Order 3, and the net price
of each complex order is within the applicable derived net market,
so the System generates leg orders to buy 10 S1 @ $1.10 and 10 S2 at
$0.90 for Order 1, leg orders to buy 10 S2 @ $0.90 and 10 S3 @ $1.10
for Order 2, and to buy 10 S1 @ $0.90 and 10 S3 @ $0.90 for Order 3.
The System will display the leg order to buy 10 S1 @ $1.10 for Order
1, which improves the Exchange's best bid for S1, the leg order to
buy 10 S2 @ $0.90 for Order 1, which improves the Exchange's best
bid for S2, and the leg order to buy 10 S3 @ $1.10, which improves
the Exchange's best bid for S3:

------------------------------------------------------------------------
               CBOE Bid                            CBOE Offer
------------------------------------------------------------------------
S1 10 @ $1.10                           10 @ $1.20
 (Order 1 leg order)
S2 10 @ $0.90                           10 @ $1.00
 (Order 1 leg order)
S3 10 @ $1.10                           10 @ $1.20
 (Order 2 leg order)
------------------------------------------------------------------------

    The leg order to buy 10 S1 @ $0.90 for Order 3 is nondisplayed
because it is worse than the Exchange's best bid; the leg order to
buy 10 S2 @ $0.90 for Order 2 is nondisplayed because it is at the
same price and size as the Order 1 leg order, which was generated
first; and the leg order to buy 10 S3 @ $0.90 for Order 3 is
nondisplayed because it is worse than the Exchange's best bid.\24\
---------------------------------------------------------------------------

    \24\ These nondisplayed leg orders will remain in the EBook and
will be eligible for execution.
---------------------------------------------------------------------------

    If a market order to sell 5 S2 is received, it will execute
against 5 of the Order 1 leg order to buy @ $0.90, and the leg of
Order 1 to buy S1 will execute against the resting offer to sell 5
S1 @ $1.20. As a result, the net price of $2.10 is achieved for a
partial execution of Order 1 (buy 5 S1 @ $1.20 + buy 5 S2 @ $0.90 =
$2.10 net), and the Order 1 leg order to buy 10 S1 @ $1.10 is
cancelled upon partial execution of Order 1. Following the partial
execution, Order 1 is still at the top of the COB, so the System
generates new leg orders to buy 5 S1 @ $1.10, which is displayed
because it is at the Exchange best bid for S1, and to buy 5 S2 at
$0.90, which is nondisplayed because the S2 leg order for Order 2 is
larger (the leg orders for Order 3 remain nondisplayed because they
are still at worse prices than the Exchange's best bids in S1 and
S3):

------------------------------------------------------------------------
               CBOE Bid                            CBOE Offer
------------------------------------------------------------------------
S1 5 @ $1.10                            5 @ $1.20
 (Order 1 leg order)
S2 10 @ $0.90                           10 @ $1.00
 (Order 2 leg order)
S3 10 @ $1.10                           10 @ $1.20
 (Order 2 leg order)
------------------------------------------------------------------------

    As discussed above, to prevent leg orders from executing against
each other and complex orders with overlapping legs from executing
against each other, prior to execution of a leg order and the related
complex order, any leg orders on the opposite side of the legs of the
executing complex order will be cancelled prior to execution of that
complex order. Thus, a leg order is firm with respect to the complex
order that it represents in the individual leg series, as overlapping
complex orders are viewed separately under the Rules.\25\
---------------------------------------------------------------------------

    \25\ Leg orders are thus not firm with respect to other complex
orders and will not trade against legs of other complex orders,
which is consistent with the existing complex order execution
provisions in Rule 6.53C that do not allow execution of overlapping
legs of complex orders.
---------------------------------------------------------------------------

    The proposed rule change provides for how the adoption of leg
orders will interact with the various auction functions available on
the Exchange. First, the proposed rule change amends Rule 6.53C,
Interpretation and Policy .04 to provide that if a leg order has been
generated for a complex order resting in the COB, the complex order
will not be eligible for the automated complex order request for
responses (``RFR'') auction process (``COA'') \26\ pursuant to
Interpretation and Policy .04. The Exchange believes that the
representation of complex orders in the leg markets through the
existence of leg orders eliminates the need to have those complex
orders re-enter a COA, and the Exchange further believes that leg
orders will more effectively create opportunities for execution of
complex orders resting in the COB than having those complex orders re-
COA.
---------------------------------------------------------------------------

    \26\ Rule 6.53C(d) provides that prior to routing to the COB or
once on PAR, eligible complex orders may initiate a COA, which is an
automated auction process to provide complex orders with
opportunities for price improvement.
---------------------------------------------------------------------------

    The proposed rule change further describes whether the System will
generate a leg order if a simple order auction (such as a Hybrid Agency
Liaison (HAL) auction per Rule 6.14A or Automated Improvement Mechanism
(AIM) auction per Rule 6.74A) is occurring at the time the leg order
would otherwise be generated. If there is a simple order auction
occurring in a leg series at the time that a leg order in that series
would otherwise be generated pursuant to Rule 6.53C(c)(iv):
     If the leg order would be on the same side of the market
as the auctioned order with a price worse than the initial auction
price of the auctioned order, then the leg order will be generated and
the auction will continue.
     If the leg order would be on the same side of the market
as the auctioned order with a price equal to or better than the initial
auction price of the auctioned order, then no leg order would be
generated and the auction will continue. A leg order may later be
generated after execution of the auctioned order.
     If the leg order would be on the opposite side of the
market as the auctioned order with a price that locks or crosses the
initial auction price of the auctioned order, then no leg order would
be generated and the auction will continue. A leg order may later be
generated after execution of the auctioned order.
     If the leg order would be on the opposite side of the
market as the auctioned order with a price that does not lock or cross
the initial auction price of the auctioned order, then the leg order
will be generated and the auction will continue.
    The Exchange proposes these provisions to ensure that leg orders
will not interact with simple order auctions in order to avoid the
system complexities that would otherwise result from combining the
execution of complex orders with the already complex auction processes.
The auction rules describe certain instances in which the entry of an
unrelated limit order while an auction is ongoing may terminate the
auction.\27\ For example, if

the Exchange receives an unrelated order on the opposite side of the
auctioned order that could trade against the auctioned order at the
prevailing NBBO price or better during a HAL auction (such a marketable
unrelated order would thus lock or cross the price of the auctioned
order, which is the NBBO), the orders would trade and the auction would
generally terminate.\28\ Additionally, during a HAL auction, if the
Exchange receives an unrelated order on the same side of the market as
the auctioned order that is priced equal to or better than the
auctioned order, then the auction would terminate.\29\ Similarly,
during an AIM or SAM auction, if the Exchange receives an unrelated
limit order on the opposite side of the auctioned order that improves
any auction response (because auction responses would at least lock or
cross the price of the auctioned order, such limit order would also
thus lock or cross the price of the auctioned order), then the auction
will terminate.\30\ Additionally, during an AIM or SAM auction, if the
Exchange receives an unrelated order that is marketable against the
Exchange's disseminated quote (if that quote is the NBBO) or the
auction responses, and thus on the same side of the market as the
auctioned order (because auction responses would match or improve the
auctioned price, the price of such unrelated order would thus be equal
to or better than the auctioned price), then the auction would
terminate.\31\
---------------------------------------------------------------------------

    \27\ See Rules 6.13A(d) (Simple Auction Liaison (``SAL'')),
6.14A(d) (HAL), 6.74A(b)(2) and (3) (AIM), and 6.74B(b)(2)
(Solicitation Auction Mechanism (``SAM'')).
    \28\ Rule 6.14A(d)(i). The Exchange notes that it is not
discussing the SAL auctions in this filing, because SAL is currently
only active for Hybrid 3.0 classes, and the leg order functionality
will not be enabled for Hybrid 3.0 classes. However, the principles
described in this discussion regarding auctions apply in a similar
manner to the SAL rule.
    \29\ Rule 6.14A(d)(ii).
    \30\ Rules 6.74A(b)(2)(C) and 6.74B(b)(2). Pursuant to such
rules, the unrelated order would also execute against the auctioned
order following the termination of the auction. See Rules
6.74A(b)(3)(D) and (E) and 6.74B(b)(2).
    \31\ Rules 6.74A(b)(2)(D) and 6.74B(b)(2).
---------------------------------------------------------------------------

    The Exchange does not want the generation of leg orders to
terminate auctions like other unrelated orders do [sic] due to the
system complexities that would otherwise result. Thus, market
participants will continue to have the same opportunities for execution
and potential price improvement through simple auctions as they would
if there were no leg orders present. Proposed Interpretation and Policy
.07(b) and (c) cover the circumstances described in the auction rules
under which the generation of leg orders may terminate an auction under
the rules and provide that leg orders will not be generated under these
circumstances. So that the proposed rule is complete, proposed
Interpretation and Policy .07(a) and (d) cover the circumstances under
which the generation of leg orders would not terminate an auction and
provide that leg orders will be generated under these circumstances.
    The Exchange would also like to note that if a leg order is
displayed in a series at the time an auction order enters the System,
and the leg order is at the same price as the starting point of the
auction and on the opposite side of the auctioned order, then the leg
order would not participate in the auction. Instead, the auctioned
order would trade with other resting interest at that price and/or the
contra order that stopped the auctioned order, as previously discussed,
leg orders only trade after all other executable orders and quotes. The
leg order, however, would continue to be displayed.
    The Exchange notes that it maintains a rigorous capacity planning
program that monitors system performance and projected capacity demands
and that, as a general matter, the Exchange considers the potential
system capacity impact of all new initiatives. The Exchange has
analyzed the potential impact on system capacity that may result from
the proposed rule change and has concluded that the Exchange has
sufficient system capacity to handle the generation of leg orders
without degrading the performance of its systems or reducing the number
of complex order instruments it currently supports.
    The Exchange also notes that the proposed rule change limits the
generation of leg orders. As discussed above, the Exchange may allow
leg orders to be generated on a class-by-class basis, and leg orders
may not be generated for all complex orders resting on the COB.
Ultimately, the Exchange believes that while generating leg orders
requires additional System processes, it has the necessary systems
capacity to implement leg orders as described in this proposed rule
change. The Exchange will closely monitor the generation of leg orders
and its effect on CBOE's systems, and will carefully manage and curtail
the number of leg orders being generated, to ensure that they do not
negatively impact system capacity and performance.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with
the Act and the rules and regulations thereunder applicable to the
Exchange and, in particular, the requirements of Section 6(b) of the
Act.\32\ Specifically, the Exchange believes the proposed rule change
is consistent with the Section 6(b)(5) \33\ requirements that the rules
of an exchange be designed to prevent fraudulent and manipulative acts
and practices, to promote just and equitable principles of trade, to
foster cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
facilitation transactions in securities, to remove impediments to and
perfect the mechanism of a free and open market and a national market
system, and, in general, to protect investors and the public interest.
Additionally, the Exchange believes the proposed rule change is
consistent with the Section 6(b)(5) \34\ requirement that the rules of
an exchange not be designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
---------------------------------------------------------------------------

    \32\ 15 U.S.C. 78f(b).
    \33\ 15 U.S.C. 78f(b)(5).
    \34\ Id.
---------------------------------------------------------------------------

    In particular, the Exchange believes that the proposed rule change
furthers the objectives of the Act by increasing the interaction
between complex orders on the COB and individual orders and quotes on
the EBook, providing greater liquidity by providing increased
opportunities for order execution, and improving execution prices
compared to those otherwise available in the regular market. The
Exchange believes that automatically generating leg orders, which will
only be executed after all other executable interest at the same price
(including nondisplayed interest) is executed in full, will provide
additional execution opportunities for complex orders, without
negatively impacting any investors in the regular market. In fact, the
generation of leg orders may enhance execution quality for investors in
the regular market by improving the price and/or size of the Exchange
BBO and by providing additional execution opportunity for individual
orders and quotes in the EBook. As the proposed rule change describes,
a leg order will not be generated while a simple auction in the leg
series is ongoing if the generation of the leg order due to its price
would terminate the auction, and potentially trade with the auctioned
order or auction responses. The Exchange believes it is appropriate to
prevent the generation of leg orders from terminating simple auctions
due to the system complexities that would otherwise result. Thus,
market participants will continue to have the same opportunities for
execution and potential price improvement as they

would if there were no leg orders present.
    The Exchange believes leg orders will increase opportunities for
execution of complex orders, potentially increase executions of
interest on the EBook, and lead to tighter spreads and finder pricing
on CBOE, which will benefit investors. Leg orders will provide
investors with opportunities to trade at better prices than would
otherwise be available--inside the otherwise existing BBO in a leg
series. The Exchange believes that the opportunity for investors to
receive executions inside the otherwise existing BBO could result in
better executions for investors, thus making leg orders consistent with
the Act.
    The Exchange believes leg orders will provide market participants
with another tool for adding trading interest on CBOE. Leg orders may
serve to increase liquidity to the extent market participants find leg
orders result in better executions. This may result in more aggressive
trading interest in the overall CBOE market.
    The Exchange also believes that the generation of leg orders is
fully compliant with all regulatory requirements. In particular, leg
orders are firm (with respect to the complex orders they represent)
\35\ and may be included in the Exchange BBO if they match or improve
the otherwise existing BBO. When a leg order executes, the other legs
of the complex order will execute against the best-priced orders or
quotes (other than leg orders). A leg order will be removed from
display in the EBook if it is no longer at the Exchange BBO or if a
complex order in a different strategy generates a larger-sized leg
order at the same price (consistent with the proposed rule regarding
display of leg orders), and will be cancelled if the net price of the
complex order can no longer be achieved, if the complex order executes,
or if the complex order is cancelled or modified, as well as at times
prior to execution of another leg order to prevent execution of leg
orders against each other and overlapping legs of separate complex
orders against each other. Additionally, to assure compliance with the
options linkage plan, a leg order will not be generated if it would
lock or cross another market.
---------------------------------------------------------------------------

    \35\ See supra notes 17 and 22 and related discussion regarding
the circumstances under which leg orders may be cancelled to prevent
execution of leg orders against each other and overlapping legs of
separate complex orders against each other, and thus the extent to
which leg orders are not firm, which will eliminate the operational
difficulties that may otherwise result from those executions and the
potential for those executions to interfere with the System and
other trading.
---------------------------------------------------------------------------

    The Exchange believes having nondisplayed leg orders available for
execution will increase the execution opportunities for more complex
orders and will result in better-priced executions for individual
orders and quotes, which will benefit investors. The presence of
nondisplayed leg orders is similar to current complex order
functionality, in that complex orders are already eligible to leg into
the regular market and trade with simple orders, even though this
complex order interest is not visible in the regular market.
    The generation of leg orders is also limited in scope, as they may
be generated only for legs of noncontingent complex orders with a ratio
that is or can be reduced to one for complex orders that are priced
within the derived net market. Additionally, the Exchange may enable
leg orders on a class-by-class basis. The Exchange believes it has the
necessary systems capacity to implement leg orders as described in this
proposed rule change. The proposed rule change prevents the execution
of leg orders against each other, and the execution of overlapping legs
of complex order against each other, in order to prevent operational
difficulties related to these executions. This is consistent with
current Exchange rules regarding the execution of complex orders, and
the Exchange believes that eliminating unnecessary operational
difficulties will protect investors. The Exchange does not believe that
the number of leg orders generated will become unmanageable. Finally,
pursuant to the proposed rule change, the Exchange will closely manage
and curtail the generation of leg orders to assure that they do not
negatively impact system capacity and performance.

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

    CBOE does not believe that the proposed rule change will impose any
burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act. The adoption of leg orders does
not impose any obligations on any market participants--the System will
automatically generate and handle leg orders. Leg orders will be
available to all market participants and for all complex orders in
classes designated by the Exchange that satisfy the requirements set
forth in the rules (even if a complex order does not generate leg
orders because, for example, it is priced outside of the derived net
market, leg orders may later be generated for that complex order if the
market changes). Accordingly, all complex orders in classes in which
the Exchange has enabled leg order functionality will be treated in the
same manner. Further, all market participants have the option to send
their complex orders to CBOE in order to take advantage of this order
type.
    Additionally, CBOE believes that the proposed rule change will
relieve any burden on, and otherwise promote, competition among options
exchanges. The Exchange believes the proposed rule change is
procompetitive because it adds an order type that is substantially
similar to functionality available at another options exchange.\36\ The
Exchange believes the proposed rule change could result in improved
liquidity, finer pricing, better executions and increased competition
within its complex order market to the benefit of the Exchange, its
Trading Permit Holders, and market participants and thus allow the
Exchange to better compete with other options exchanges for complex
order flow. The Exchange also believes leg orders may facilitate
additional executions and enhance execution quality for investors in
the regular market by improving the price and/or size of the Exchange
BBO and by providing additional execution opportunities for resting
orders on the regular order book.
---------------------------------------------------------------------------

    \36\ See International Securities Exchange, LLC (``ISE'') Rules
715(k) and 722(b)(3); see also Securities Exchange Act Release No.
34-66234 (January 25, 2012), 77 FR 4852 (January 31, 2012) (SR-ISE-
2011-082) (order approving rule to adopt legging orders).
---------------------------------------------------------------------------

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

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

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

    Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period up to 90 days (i) as the
Commission may designate 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 Exchange consents, the Commission will:
    A. By order approve or disapprove such proposed rule change, or
    B. institute proceedings to determine whether the proposed rule
change should be disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-CBOE-2013-026 on the subject line.

Paper Comments

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

    All submissions should refer to File Number SR-CBOE-2013-026. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549-1090 on official business days between the hours
of 10:00 a.m. and 3:00 p.m. Copies of such filing also will be
available for inspection and copying at the principal offices of the
Exchange. All comments received will be posted without change; the
Commission does not edit personal identifying information from
submissions. You should submit only information that you wish to make
available publicly. All submissions should refer to File Number SR-
CBOE-2013-026, and should be submitted on or before May 8, 2013.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\37\
---------------------------------------------------------------------------

    \37\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-08972 Filed 4-16-13; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register: July 5, 2011 (Volume 76, Number 128)]
[Rules and Regulations]
[Page 39018-39019]
[DOCID:fr05jy11-12]

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DEPARTMENT OF TRANSPORTATION

Federal Motor Carrier Safety Administration

49 CFR Parts 383 and 384

[Docket No. FMCSA-2007-27659]
RIN 2126-AB02

Commercial Driver's License Testing and Commercial Learner's
Permit Standards; Corrections

AGENCY: Federal Motor Carrier Safety Administration (FMCSA), DOT.

ACTION: Final rule; correction.

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

SUMMARY: FMCSA published a final rule in the Federal Register on
Monday, May 9, 2011, that will be effective on July 8, 2011. This final
rule amends the commercial driver's license (CDL) knowledge and skills
testing standards and establishes new minimum Federal standards for
States to issue the commercial learner's permit (CLP). Since the final
rule was published, FMCSA identified minor discrepancies regarding
section references in the regulatory text of the final rule. This
document corrects those section references.

DATES: Effective July 8, 2011.

FOR FURTHER INFORMATION CONTACT: Robert Redmond, Office of Safety
Programs, Commercial Driver's License Division, telephone (202) 366-
5014 or e-mail<EMAIL_ADDRESS>Office hours are from 8 a.m. to
4:30 p.m.

SUPPLEMENTARY INFORMATION:

Corrections

    In the final rule published on May 9, 2011 (FR Doc. 2011-10510, 76
FR 26854), the following corrections are made:

0
a. On page 26893, in the third column, redesignate paragraphs (f) and
(g) of Sec.  383.153 as paragraphs (g) and (h); and

0
b. On page 26896, in the third column, correct amendatory instruction
number 52 and its regulatory text to read:

0
52. Amend Sec.  384.301 by adding a new paragraph (f) to read as
follows:

Sec.  384.301  Substantial compliance--general requirements.

* * * * *
    (f) A State must come into substantial compliance with the
requirements of subpart B of this part in effect as of July 8, 2011, as
soon as practical but, unless otherwise specifically provided in this
part, not later than July 8, 2014.

    Issued on: June 27, 2011.
William Bronrott,
Deputy Administrator.
[FR Doc. 2011-16683 Filed 7-1-11; 8:45 am]
BILLING CODE 4910-EX-P


[Federal Register: February 17, 2006 (Volume 71, Number 33)]
[Notices]
[Page 8571]
[DOCID:fr17fe06-43]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. RP99-220-023]

Great Lakes Gas Transmission Limited Partnership; Notice of
Negotiated Rate Agreement

February 10, 2006.
    Take notice that on February 7, 2006, Great Lakes Gas Transmission
Limited Partnership (Great Lakes) filed for disclosure, a
transportation service agreement pursuant to Great Lakes' Rate Schedule
FT entered into by Great Lakes and ANR Pipeline Company (ANR) (FT
Service Agreement). Great Lakes states that the FT Service Agreement
filed reflects a negotiated rate arrangement between Great Lakes and
ANR commencing November 1, 2006.
    Any person desiring to intervene or to protest this filing must
file in accordance with Rules 211 and 214 of the Commission's Rules of
Practice and Procedure (18 CFR 385.211 and 385.214). Protests will be
considered by the Commission in determining the appropriate action to
be taken, but will not serve to make protestants parties to the
proceeding. Any person wishing to become a party must file a notice of
intervention or motion to intervene, as appropriate. Such notices,
motions, or protests must be filed in accordance with the provisions of
Section 154.210 of the Commission's regulations (18 CFR 154.210).
Anyone filing an intervention or protest must serve a copy of that
document on the Applicant. Anyone filing an intervention or protest on
or before the intervention or protest date need not serve motions to
intervene or protests on persons other than the Applicant.
    The Commission encourages electronic submission of protests and
interventions in lieu of paper using the ``eFiling'' link at http://www.ferc.gov.
 Persons unable to file electronically should submit an

original and 14 copies of the protest or intervention to the Federal
Energy Regulatory Commission, 888 First Street, NE., Washington, DC
20426.
    This filing is accessible on-line at http://www.ferc.gov, using the

``eLibrary'' link and is available for review in the Commission's
Public Reference Room in Washington, DC. There is an ``eSubscription''
link on the web site that enables subscribers to receive e-mail
notification when a document is added to a subscribed docket(s). For
assistance with any FERC Online service, please e-mail
<EMAIL_ADDRESS>or call<PHONE_NUMBER> (toll free). For

TTY, call<PHONE_NUMBER>.

Magalie R. Salas,
Secretary.
 [FR Doc. E6-2263 Filed 2-16-06; 8:45 am]

BILLING CODE 6717-01-P


[Federal Register Volume 79, Number 173 (Monday, September 8, 2014)]
[Notices]
[Pages 53194-53195]
[FR Doc No: 2014-21291]

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ENVIRONMENTAL PROTECTION AGENCY

[FRL-9916-38-Region-2]

Proposed Settlement Pursuant Sections 106 and 122 of CERCLA
Relating to the Gowanus Canal Superfund Site, Brooklyn, Kings County,
New York

AGENCY: Environmental Protection Agency.

ACTION: Notice; request for public comment.

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SUMMARY: In accordance with Section 122(i) of the Comprehensive
Environmental Response, Compensation, and Liability Act of 1980, as
amended (``CERCLA''), notice is hereby given by the U.S. Environmental
Protection Agency (``EPA''), Region 2, of two proposed settlement
agreements pursuant to

Sections 106 and 122 of CERCLA, for Removal Action by Bona Fide
Prospective Purchaser (``Settlement Agreements''), entered into by and
between EPA, Region 2, LSG 363 Bond Street LLC and LSG 365 Bond Street
LLC (``Purchasers'') (collectively, the ``Parties'') under CERCLA.
Under the Settlement Agreements, the Purchasers agree to perform a
removal action and pay certain response costs in connection with the
Gowanus Canal Superfund Site (``Site'') located in Brooklyn, Kings
County, New York and properties located at 388 Carroll Street, 363 Bond
Street, and 365 Bond Street, Brooklyn, New York (collectively, the
``Properties'').
    The Settlement Agreements include a covenant by EPA not to sue or
to take administrative action against the Purchasers pursuant to
Sections 106 and 107 of CERCLA, with regard to the Existing
Contamination, as defined in the Settlement Agreements. For thirty (30)
days following the date of publication of this notice, EPA will receive
written comments relating to the Settlement Agreements. EPA will
consider all comments received and may modify or withdraw its consent
to the Settlement Agreements if comments received disclose facts or
considerations that indicate that the proposed Settlement Agreements
are inappropriate, improper or inadequate. EPA's response to any
comments received will be available for public inspection at EPA Region
2 offices, 290 Broadway, New York, New York 10007-1866.

DATES: Comments must be submitted on or before October 8, 2014.

ADDRESSES: The proposed Settlement Agreements can be viewed at http://www.epa.gov/region02/superfund/npl/gowanus/additionaldocs.html. They
are also available for public inspection at EPA Region 2 offices at 290
Broadway, New York, New York 10007-1866. A copy may also be obtained
from Brian Carr, Assistant Regional Counsel, New York/Caribbean
Superfund Branch, Office of Regional Counsel, U.S. EPA Region 2, 290
Broadway_17th Floor, New York, New York 10007-1866,<PHONE_NUMBER>,
<EMAIL_ADDRESS>Comments should reference the Gowanus Canal
Superfund Site, Brooklyn, New York., Index Nos. CERCLA-02-2014-2004 and
CERCLA-02-2014-2008, and should be sent by mail or email to Brian Carr,
Assistant Regional Counsel, at the address or email address above.

FOR FURTHER INFORMATION CONTACT: Brian Carr, Assistant Regional
Counsel, at the address, email or telephone number stated above.

    Dated: August 26, 2014.
John E. LaPadula,
Acting Director, Emergency and Remedial Response Division, U.S.
Environmental Protection Agency, Region 2.
[FR Doc. 2014-21291 Filed 9-5-14; 8:45 am]
BILLING CODE 6560-50-P


[Federal Register: October 26, 2007 (Volume 72, Number 207)]
[Notices]
[Page 60927]
[DOCID:fr26oc07-125]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

[Summary Notice No. PE-2007-36]

Petition for Exemption; Summary of Petition Received

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of petition for exemption received.

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SUMMARY: This notice contains a summary of a petition seeking relief
from specified requirements of 14 CFR. The purpose of this notice is to
improve the public's awareness of, and participation in, this aspect of
FAA's regulatory activities. 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.

DATE: Comments on this petition must identify the petition docket
number involved and must be received on or before November 15, 2007.

ADDRESSES: You may send comments identified by Docket Number FAA-2007-
0007 using any of the following methods:
     Government-wide rulemaking Web site: Go to http://www.regulations.gov
 and follow the instructions for sending your

comments electronically.
     Mail: Send comments to the Docket Management Facility;
U.S. Department of Transportation, 1200 New Jersey Avenue, SE., West
Building Ground Floor, Room W12-140, Washington, DC 20590.
     Fax: Fax comments to the Docket Management Facility at
202-493-2251.
     Hand Delivery: Bring comments to the Docket Management
Facility in Room W12-140 of the West Building Ground Floor at 1200 New
Jersey Avenue, S.E., Washington, DC, between 9 a.m. and 5 p.m., Monday
through Friday, except Federal holidays.
    Privacy: We will post all comments we receive, without change, to
http://www.regulations.gov, including any personal information you

provide. Using the search function of our docket Web site, anyone can
find and read the comments received into any of our dockets, including
the name of the individual sending the comment (or signing the comment
for 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 19477-78).
    Docket: To read background documents or comments received, go to
http://www.regulations.gov at any time or to the Docket Management

Facility 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: Tyneka Thomas<PHONE_NUMBER> or
Frances Shaver<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 October 22, 2007.
Pamela Hamilton-Powell,
Director, Office of Rulemaking.

Petition for Exemption

    Docket No.: FAA-2007-0007.
    Petitioner: Future Flight LLC.
    Section of 14 CFR Affected: Sec. Sec.  21.191(i)(1)(3) and
21.193(e)(1).
    Description of Relief Sought: The petitioner is seeking relief to
allow it to produce and sell experimental, ready-to-fly gyroplanes for
operation in the light-sport category. The gyroplanes would meet all
other provisions of Sec. Sec.  21.190, 21.191 and 21.193, including the
requirement that such aircraft meet the applicable consensus standard.
 [FR Doc. E7-21105 Filed 10-25-07; 8:45 am]

BILLING CODE 4910-13-P


[Federal Register Volume 79, Number 165 (Tuesday, August 26, 2014)]
[Notices]
[Page 50926]
[FR Doc No: 2014-20320]

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DEPARTMENT OF HOMELAND SECURITY

Federal Emergency Management Agency

[Internal Agency Docket No. FEMA-4190-DR; Docket ID FEMA-2014-0003]

North Dakota; Major Disaster and Related Determinations

AGENCY: Federal Emergency Management Agency, DHS.

ACTION: Notice.

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SUMMARY: This is a notice of the Presidential declaration of a major
disaster for the State of North Dakota (FEMA-4190-DR), dated August 19,
2014, and related determinations.

DATES: Effective Date: August 19, 2014.

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: Notice is hereby given that, in a letter
dated August 19, 2014, the President issued a major disaster
declaration under the authority of the Robert T. Stafford Disaster
Relief and Emergency Assistance Act, 42 U.S.C. 5121 et seq. (the
``Stafford Act''), as follows:

    I have determined that the damage in certain areas of the State
of North Dakota resulting from severe storms and flooding during the
period of June 25 to July 1, 2014, is of sufficient severity and
magnitude to warrant a major disaster declaration under the Robert
T. Stafford Disaster Relief and Emergency Assistance Act, 42 U.S.C.
5121 et seq. (the ``Stafford Act''). Therefore, I declare that such
a major disaster exists in the State of North Dakota.
    In order to provide Federal assistance, you are hereby
authorized to allocate from funds available for these purposes such
amounts as you find necessary for Federal disaster assistance and
administrative expenses.
    You are authorized to provide Public Assistance in the
designated areas and Hazard Mitigation throughout the State.
Consistent with the requirement that Federal assistance be
supplemental, any Federal funds provided under the Stafford Act for
Hazard Mitigation will be limited to 75 percent of the total
eligible costs. Federal funds provided under the Stafford Act for
Public Assistance also will be limited to 75 percent of the total
eligible costs, with the exception of projects that meet the
eligibility criteria for a higher Federal cost-sharing percentage
under the Public Assistance Alternative Procedures Pilot Program for
Debris Removal implemented pursuant to section 428 of the Stafford
Act.
    Further, you are authorized to make changes to this declaration
for the approved assistance to the extent allowable under the
Stafford Act.

    The Federal Emergency Management Agency (FEMA) hereby gives notice
that pursuant to the authority vested in the Administrator, under
Executive Order 12148, as amended, Lee K. dePalo, of FEMA is appointed
to act as the Federal Coordinating Officer for this major disaster.
    The following areas of the State of North Dakota have been
designated as adversely affected by this major disaster:

    Benson, Bottineau, Divide, Eddy, McHenry, Mountrail, Pierce,
Renville, and Ward Counties and the Standing Rock Indian Reservation
for Public Assistance.
    All areas within the State of North Dakota are eligible for
assistance under the Hazard Mitigation Grant Program.

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. 2014-20320 Filed 8-25-14; 8:45 a.m.]
BILLING CODE 9111-23-P